Catch up on select AI news and developments from the past week or so (in no particular order):

Mistral triples revenue after enterprise chatbot rollout. Mistral AI launched the enterprise version of its chatbot, Le Chat, which integrates with tools like SharePoint and Google Drive. The French startup, now valued at $6B, reported tripled revenue over 100 days, with growth driven especially by markets outside the US Le Chat can be deployed on customers' own cloud infrastructure. CEO Arthur Mensch says Mistral is cutting its reliance on US cloud services, which may appeal to European clients seeking data sovereignty. Importance for marketers: Highlights the global demand for customizable, enterprise-grade AI solutions with regional data control.

Hugging Face launches free agentic AI tool for public use. Hugging Face has released the Open Computer Agent, a free, web-accessible AI agent that can use a cloud-hosted Linux machine to perform tasks like web searches. While it performs well on basic tasks, it struggles with complex requests and CAPTCHA challenges. The tool is slower than commercial alternatives and has a waitlist, but it highlights growing capabilities of open-source vision models. Hugging Face aims to showcase progress, not build a commercial-grade product. The AI agent market is projected to grow from $7.84B in 2025 to $52.62B by 2030. Importance for marketers: Demonstrates the expanding viability of open-source AI tools in automating workflows and customer interaction.

Google tests live conversational camera feature in AI Mode. Google is working on a new "Live for AI Mode" feature, based on a teardown of its app code. The function will let users converse with AI Mode in real time through voice and camera input, with features like mute controls, screen sharing, and transcripts. Though still experimental, it positions Google to compete with real-time, multimodal AI interactions akin to Project Astra or Gemini Live. Google Lens integration will be a key part of the rollout. Importance for marketers: Suggests emerging tools for live, visual AI interactions that could shape future engagement and commerce formats.

Microsoft introduces lower-cost AI laptops to expand reach. Microsoft is releasing Surface laptops and tablets starting at $799, featuring Qualcomm's Snapdragon X Plus chips. These budget-friendly devices include Copilot+ AI features previously reserved for higher-end models. Launching May 20, the new devices aim to make AI capabilities accessible to students and early-career professionals. The move also positions Microsoft competitively against Apple's MacBooks and iPads. Importance for marketers: Indicates broader AI accessibility across user segments, expanding the potential user base for AI-enhanced productivity tools.

OpenAI confirms nonprofit will retain control amid backlash. OpenAI reversed plans to transition fully to a for-profit model, stating its nonprofit will maintain control and become the largest shareholder in a new public benefit corporation. The decision follows regulatory scrutiny and public criticism, including a lawsuit from Elon Musk. CEO Sam Altman says OpenAI may need "trillions" to meet its mission. Importance for marketers: Reinforces questions around ethical governance and transparency as AI companies scale rapidly and pursue funding.

Elon Musk continues lawsuit against OpenAI despite control change. Elon Musk plans to proceed with his lawsuit against OpenAI, arguing its reaffirmed nonprofit control is misleading. Despite OpenAI stating its nonprofit arm remains in charge, Musk claims the new structure still benefits private investors and Microsoft. A jury trial is scheduled for 2026. Critics including AI pioneers and labor groups support Musk's effort to block OpenAI's for-profit conversion. Importance for marketers: Legal battles over AI governance could affect trust, regulation, and future development of foundational models.

Experts warn of delusions tied to ChatGPT use. Reports are emerging of ChatGPT users developing AI-induced delusions, including spiritual mania and conspiratorial thinking. According to a Rolling Stone investigation, users with mental health vulnerabilities are engaging in prolonged, belief-reinforcing conversations with AI. Experts warn that such interactions may mimic therapy without any ethical safeguards. OpenAI declined to comment. Importance for marketers: Raises urgent concerns about responsible AI design and the psychological impact of prolonged user interaction with chatbots.

Google's Gemini to get memory and cross-app context. Google's Gemini chatbot will soon be able to recall past conversations and, eventually, pull context from other Google apps like Gmail and YouTube via a feature called "pcontext." Announced by a Google VP, the update will deepen personalization and proactivity. Privacy controls will be required for activation. More is expected at Google I/O on May 20. Importance for marketers: Signals the evolution of AI assistants toward persistent, personalized experiences across platforms—reshaping customer interaction strategies.

Google to let children use Gemini under parental controls. Google will soon allow children under 13 to use its Gemini AI via Family Link-managed devices. Parents will receive notifications and can disable access. While Google claims children's data won't train AI, critics raise safety concerns about inappropriate content and kids mistaking AI for real people. Importance for marketers: Expands the age range of AI users, raising both opportunity and responsibility in content design and AI safety for younger audiences.

Google streamlines AI Mode with one-tap access and visual updates. Google has rolled out one-tap AI Mode access on Android and iOS, eliminating the homepage step and instantly launching a keyboard-ready chat field. iOS users also see a visually enhanced animation on launch. Conversation history is no longer immediately available, but Google says direct access is coming. Importance for marketers: Shows Google's push for faster, more intuitive AI experiences—potentially increasing user engagement and search behavior in mobile contexts.

Google Gemini adds AI-powered image editing via prompts. Google is expanding Gemini's functionality to include AI image editing for all users. The tool enables users to upload images or create new ones and then modify them using natural language prompts. Edits include replacing objects, altering backgrounds, and applying filters. All outputs carry invisible watermarks; visible watermarks are being tested. Importance for marketers: Democratizes image editing and content creation, making AI-powered visual production more accessible across global markets.

Perplexity to launch Comet browser to rival Chrome. Perplexity AI is set to launch its Comet browser in mid-May, aiming to integrate AI directly into users' browsing workflows. The browser offers features like access to browsing history, contextual search, and native ad blocking. Privacy controls and onboarding enhancements suggest it's positioned as a research-focused alternative to Chrome and Edge. Importance for marketers: Represents a shift in how search and browsing may merge, challenging traditional SEO approaches and user acquisition strategies.

Google scientist says politeness may improve AI response quality. DeepMind scientist Murray Shanahan suggests that saying "please" and "thank you" to AI models can yield better responses due to how models mimic human behavior. While OpenAI's Sam Altman claims such politeness increases compute costs, Shanahan frames it as helpful reinforcement. This behavior could influence how users interact with AI in the future. Importance for marketers: Reinforces the subtle dynamics of human-AI interaction and how language tone may impact AI effectiveness and user experience.

You can find the previous issue of AI Update here.

Editor's note: GPT-4o was used to help compile this week's AI Update.