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Synthesia launched an option to make AI-generated avatars by recording footage of yourself with a webcam or your phone.

Synthesia

Synthesia, a British artificial intelligence startup, on Monday showed off a slew of new product updates including the ability to create your own Apple-style key presentations with AI avatars by using just a laptop webcam or your phone.

The seven-year-old firm, which is backed by Nvidia, said the new product updates will make it more of an all-encompassing video production suite for large companies, rather than just a platform that offers users the ability to create AI-generated avatars.

Among the new updates Synthesia is launching is the ability to produce AI avatars using webcams or a phone, “full body” avatars with hands and arms, and a screen recording tool that shows an AI avatar guiding you through what you’re watching.

What is Synthesia?

Synthesia, which says it’s used by nearly half of the Fortfune 500, uses AI avatars for all kinds of purposes.

These can range from creating tailored training videos to guide employees around certain processes, or generating promotional material that can be shown in the form of a video rather than an email or other textual communications.

Apple's biggest challenges to bring its AI products to China

But that hasn’t always been the case. According to co-founder and CEO Victor Riparbelli, in the first three years of the company’s story, Synthesia actually started out trying to sell its technology to Hollywood agencies and big-budget video production companies. The firm used computer vision for an AI dubbing tool that made mouth movements more lifelike for different languages.

“What we figured out was that the quality threshold to do anything with these guys was so big, no matter what we do, we’ll be a very small part of a much bigger process,” Riparbelli told CNBC in an interview at the firm’s London office.

“What was more interesting was the democratization aspect of: There are millions of people in the world who want to make video, but they’re not making video today because they don’t have the budget.”

In an Apple-style keynote, Synthesia’s CEO unveiled the firm’s new products, touting them as a more productivity-focused suite of tools for use by businesses, rather than just a platform that offers AI avatars.

Apple-style keynotes with a webcam

But now, Synthesia is introducing new software which will make it easier for users to produce a digital version of themselves from anywhere, using just a webcam and Synthesia’s software.

The company is also launching the ability to create full-body avatars. This is different to Synthesia’s current avatars, which are limited to just portrait view. Now, you can go into a studio with dozens of cameras, sensors and lights all around you to make avatars that can move their hands.

Generating hands is something that’s traditionally hard for AI to do — often because hands are only a small part of the human body and not typically the focus in visual content.

Synthesia also debuted the option to play videos of AI avatars speaking in any language they like, whether it’s English, French, German, or Chinese.

In the future, Synthesia says, it will be able to tailor AI avatars for different countries: For example, a Nigerian avatar running a user through a tutorial rather than an American.

Synthesia’s AI video assistant can produce summaries of entire articles and documents.

Synthesia

Synthesia also launched a new AI video assistant which can produce summaries of entire articles and documents. This could be a human resources specialist making a quick video explaining company benefits packages, for example.

Synthesia’s screen recording tool shows an AI avatar guiding you through what you’re watching.

Synthesia

Another big feature the company is rolling out is a new screen recording tool, which shows an AI avatar guiding you through what you’re watching.

Not chasing a ‘PR moment’

In CNBC’s interview with him, Riparbelli characterized what Synthesia is trying to do as an enterprise-focused product overhaul, which would make it more akin to giants like Microsoft, Salesforce, and Zoom in the enterprise category.

“The world has been blown away by this stuff for the last 12 to 18 to 24 months, which is awesome,” Riparbelli told CNBC.

“But now we have experimented a lot, and we have found out the right use cases for these technologies that have lasting business value. They’re not like just a short-term PR moment.”

“You need to do that business goal of reducing customer support tickets by showing videos instead of text; or sell by making videos instead of just sending out emails,” he added.

“Now people are creating workflows around that. They need better ways to achieve their business goals, not just an interface with AI models. That’s where we’re going as a company.”

Last year, Synthesia raised $90 million from investors including U.S. chipmaker Nvidia and venture capital firm Accel, in a funding round that valued it at $1 billion and giving it “unicorn” status.

The company’s competitors include AI video tools Veed, Colossyan, Elai, and HeyGen. And Chinese-owned social media app TikTok also recently debuted Symphony Assistant, a product that allows creators to make their own AI avatars.

 The company makes money through a number of subscription pricing plans ranging from $22 for a “starter” plan and $67 for a “creator” plan, to custom “enterprise” plans where pricing is based on negotiations with Synthesia’s sales team.

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Microsoft AI chief Suleyman sees advantage in building models ‘3 or 6 months behind’

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Microsoft AI chief Suleyman sees advantage in building models ‘3 or 6 months behind’

Microsoft owns lots of Nvidia graphics processing units, but it isn’t using them to develop state-of-the-art artificial intelligence models.

There are good reasons for that position, Mustafa Suleyman, the company’s CEO of AI, told CNBC’s Steve Kovach in an interview on Friday. Waiting to build models that are “three or six months behind” offers several advantages, including lower costs and the ability to concentrate on specific use cases, Suleyman said.

It’s “cheaper to give a specific answer once you’ve waited for the first three or six months for the frontier to go first. We call that off-frontier,” he said. “That’s actually our strategy, is to really play a very tight second, given the capital-intensiveness of these models.”

Suleyman made a name for himself as a co-founder of DeepMind, the AI lab that Google bought in 2014, reportedly for $400 million to $650 million. Suleyman arrived at Microsoft last year alongside other employees of the startup Inflection, where he had been CEO.

More than ever, Microsoft counts on relationships with other companies to grow.

It gets AI models from San Francisco startup OpenAI and supplemental computing power from newly public CoreWeave in New Jersey. Microsoft has repeatedly enriched Bing, Windows and other products with OpenAI’s latest systems for writing human-like language and generating images.

Microsoft’s Copilot will gain “memory” to retain key facts about people who repeatedly use the assistant, Suleyman said Friday at an event in Microsoft’s Redmond, Washington, headquarters to commemorate the company’s 50th birthday. That feature came first to OpenAI’s ChatGPT, which has 500 million weekly users.

Through ChatGPT, people can access top-flight large language models such as the o1 reasoning model that takes time before spitting out an answer. OpenAI introduced that capability in September — only weeks later did Microsoft bring a similar capability called Think Deeper to Copilot.

Microsoft occasionally releases open-source small-language models that can run on PCs. They don’t require powerful server GPUs, making them different from OpenAI’s o1.

OpenAI and Microsoft have held a tight relationship shortly after the startup launched its ChatGPT chatbot in late 2022, effectively kicking off the generative AI race. In total, Microsoft has invested $13.75 billion in the startup, but more recently, fissures in the relationship between the two companies have begun to show.

Microsoft added OpenAI to its list of competitors in July 2024, and OpenAI in January announced that it was working with rival cloud provider Oracle on the $500 billion Stargate project. That came after years of OpenAI exclusively relying on Microsoft’s Azure cloud. Despite OpenAI partnering with Oracle, Microsoft in a blog post announced that the startup had “recently made a new, large Azure commitment.”

“Look, it’s absolutely mission-critical that long-term, we are able to do AI self-sufficiently at Microsoft,” Suleyman said. “At the same time, I think about these things over five and 10 year periods. You know, until 2030 at least, we are deeply partnered with OpenAI, who have [had an] enormously successful relationship for us.

Microsoft is focused on building its own AI internally, but the company is not pushing itself to build the most cutting-edge models, Suleyman said.

“We have an incredibly strong AI team, huge amounts of compute, and it’s very important to us that, you know, maybe we don’t develop the absolute frontier, the best model in the world first,” he said. “That’s very, very expensive to do and unnecessary to cause that duplication.”

WATCH: Microsoft Copilot beginning of a seismic shift in AI integration, says Microsoft AI CEO Suleyman

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Former Microsoft CEO Steve Ballmer says, as shareholder, tariffs are ‘not good’

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Former Microsoft CEO Steve Ballmer says, as shareholder, tariffs are 'not good'

President Trump’s new tariffs on goods that the U.S. imports from over 100 countries will have an effect on consumers, former Microsoft CEO Steve Ballmer told CNBC on Friday. Investors will feel the pain, too.

Microsoft’s stock dropped almost 6% in the past two days, as the Nasdaq wrapped up its worst week in five years.

“As a Microsoft shareholder, this kind of thing is not good,” Ballmer said, in an interview with Andrew Ross Sorkin that was tied to Microsoft’s 50th anniversary celebration. “It creates opportunity to be a serious, long-term player.”

Ballmer was sandwiched in between Microsoft co-founder Bill Gates and current CEO Satya Nadella for the interview.

“I took just enough economics in college — that tariffs are actually going to bring some turmoil,” said Ballmer, who was succeeded by Nadella in 2014. Gates, Microsoft’s first CEO, convinced Ballmer to join the company in 1980.

Gates, Ballmer and Nadella attended proceedings at Microsoft’s Redmond, Washington, campus on Friday to celebrate its first half-century.

Between the tariffs and weak quarterly revenue guidance announced in January, Microsoft’s stock is on track for its fifth straight month of declines, which would be the worst stretch since 2009. But the company remains a leader in the PC operating system and productivity software markets, and its partnership with startup OpenAI has led to gains in cloud computing.

“I think that disruption is very hard on people, and so the decision to do something for which disruption was inevitable, that needs a lot of popular support, and nobody could game theorize exactly who is going to do what in response,” Ballmer said, regarding the tariffs. “So, I think citizens really like stability a lot. And I hope people — individuals who will feel this, because people are feeling it, not just the stock market, people are going to feel it.”

Ballmer, who owns the Los Angeles Clippers, is among Microsoft’s biggest fans. He said he’s the company’s largest investor. In 2014, shortly after he bought the basketball team for $2 billion, he held over 333 million shares of the stock, according to a regulatory filing.

“I’m not going to probably have 50 more years on the planet,” he said. “But whatever minutes I have, I’m gonna be a large Microsoft shareholder.” He said there’s a bright future for computing, storage and intelligence. Microsoft launched the first Azure services while Ballmer was CEO.

Earlier this week Bloomberg reported that Microsoft, which pledged to spend $80 billion on AI-enabled data center infrastructure in the current fiscal year, has stopped discussions or pushed back the opening of facilities in the U.S. and abroad.

JPMorgan Chase’s chief economist, Bruce Kasman, said in a Thursday note that the chance of a global recession will be 60% if Trump’s tariffs kick in as described. His previous estimate was 40%.

“Fifty years from now, or 25 years from now, what is the one thing you can be guaranteed of, is the world needs more compute,” Nadella said. “So I want to keep those two thoughts and then take one step at a time, and then whatever are the geopolitical or economic shifts, we’ll adjust to it.”

Gates, who along with co-founder Paul Allen, sought to build a software company rather than sell both software and hardware, said he wasn’t sure what the economic effects of the tariffs will be. Today, most of Microsoft’s revenue comes from software. It also sells Surface PCs and Xbox consoles.

“So far, it’s just on goods, but you know, will it eventually be on services? Who knows?” said Gates, who reportedly donated around $50 million to a nonprofit that supported Democratic nominee Kamala Harris’ losing campaign.

— CNBC’s Alex Harring contributed to this report.

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AppLovin can offer TikTok ‘much stronger bid than others,’ CEO says

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AppLovin can offer TikTok 'much stronger bid than others,' CEO says

Piotr Swat | Lightrocket | Getty Images

AppLovin CEO Adam Foroughi provided more clarity on the ad-tech company’s late-stage effort to acquire TikTok, calling his offer a “much stronger bid than others” on CNBC’s The Exchange Friday afternoon.

Foroughi said the company is proposing a merger between AppLovin and the entire global business of TikTok, characterizing the deal as a “partnership” where the Chinese could participate in the upside while AppLovin would run the app.

“If you pair our algorithm with the TikTok audience, the expansion on that platform for dollars spent will be through the roof,” Foroughi said.

The news comes as President Trump announced he would extend the deadline a second time for TikTok’s Chinese-owned parent company ByteDance to sell the U.S. subsidiary of TikTok to an American buyer or face an effective ban on U.S. app stores. The new deadline is now in June, which, as Foroughi described, “buys more time to put the pieces together” on AppLovin’s bid. 

“The president’s a great dealmaker — we’re proposing, essentially an enhancement to the deal that they’ve been working on, but a bigger version of all the deals contemplated,” he added.

AppLovin faces a crowded field of other interested U.S. backers, including Amazon, Oracle, billionaire Frank McCourt and his Project Liberty consortium, and numerous private equity firms. Some proposals reportedly structure the deal to give a U.S. buyer 50% ownership of the company, rather than a complete acquisition. The Chinese government will still need to approve the deal, and AppLovin’s interest in purchasing TikTok in “all markets outside of China” is “preliminary,” according to an April 3 SEC filing.

Correction: A prior version of this story incorrectly characterized China’s ongoing role in TikTok should AppLovin acquire the app.

WATCH: AppLovin CEO Adam Foroughi on its bid to buy TikTok

AppLovin CEO Adam Foroughi on its bid to buy TikTok

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