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Blurred lines: "Photoshopped" is about to get a whole new meaning

Blurred lines: "Photoshopped" is about to get a whole new meaning

Wings and lassos

Adobe is the latest company to jump on the AI bandwagon, announcing last week that it's integrating the technology into its editing software Photoshop. The new tool will work similarly to other generative AI technologies, such as Midjourney and DALL-E, allowing users to quickly create, extend or edit images with simple prompts. Examples demonstrated included replacing a cowboy's lasso with strands of spaghetti, adding wings to a jumping dog, and more mundane edits like extending images or replacing backgrounds.

Integrating AI into its products makes a lot of sense for Adobe — the company’s share price is up 14% since the news — turning what could have been an existential threat into another feature of its flagship design software. Those tools will also have to stay fresh. Adobe’s business is now overwhelmingly subscriptions, rather than one-off sales, a shift that means more predictable revenue for Adobe, but also pressure to keep delivering product updates in a fast-moving industry. Last year the company splurged $20bn buying startup Figma (a deal that’s still being held up by UK regulators), this time the company seems more comfortable building its latest features in house.

Can’t trust your eyes

With Photoshop embracing AI, discussions will intensify about the risks posed by AI-generated fake images, like one of the Pentagon from last week. Interestingly, Adobe is including a free tool that will encode AI generated images with invisible digital signatures to separate the organic from the algorithmic. The company hasn't addressed concerns around job losses quite so convincingly, however — merely describing the tool as a “co-pilot” rather than a replacement for human designers.

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Mark Zuckerberg in the metaverse

RIP the metaverse

Meta seems to be winding down its metaverse ambitions. We took a look back at what the company was going for.

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Salesforce falls as Anthropic debuts Cowork tool

Salesforce is on track for its worst trading day in nearly two years, with shares down more than 6% Tuesday afternoon. One potential contributor: Anthropic’s release of Cowork, an autonomous digital assistant for completing office tasks. Essentially, Cowork is an agent-based version of Anthropic’s Claude chatbot that can access and manipulate files, automate workflows, and execute tasks on a user’s behalf.

Salesforce watchers will recall that the SaaS giant has thrown its weight behind its own agent-based workplace AI, Agentforce, which CEO Marc Benioff recently described as one of the company’s two main “momentum drivers.” In December, Benioff said he would consider renaming the company "Agenforce."

tech

Google reaches record high and crosses $4 trillion market cap after major wins for Gemini

Google parent Alphabet closed yesterday at a record-high stock price of $331.86, giving the company a market capitalization just above $4 trillion, as investors reward a string of wins for its Gemini AI model, including high-profile partnerships with Apple and Walmart.

After months of speculation, Apple announced a multiyear partnership to use Gemini to power its AI assistant, Siri, a major endorsement of Google’s AI prowess. That same day, Walmart said it would partner with Google to let customers purchase products directly through the Gemini chatbot, a move that would put Gemini in front of millions of Walmart shoppers and test whether AI chatbots can drive real commerce at scale rather than isolated queries. (Amazon, OpenAI, and Microsoft are experimenting with similar AI shopping tools.)

The stock is up nearly 1% again in premarket trading today. While Microsoft and Apple have both crossed $4 trillion in the past, they’ve since dipped below it, leaving Google and Nvidia as the only companies currently valued above the threshold.

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