Connect with us

Published

on

Lensa AI image.

Sofia Pitt

You may have noticed a new trend taking over your Instagram feed. Your friends are turning themselves into digital art with the help of an artificial intelligence-generated app called Lensa.

Lensa AI is currently the top free app in Apple App Store, though you’ll have to pay to use the AI artwork feature.

Lensa first launched as a photo editing tool in 2018, but last month the company released a new feature called “Magic Avatars.” These AI-generated digital self-portraits turn you into works of art in a variety of themes, from pop, to fairy princesses, to anime.

Lensa avatar of Sofia Pitt in iridescent.

Sofia Pitt

You get a 7-day free trial. Subscription fees vary after that, with yearly unlimited access ranging from $14.99 to $49.99. To use the “Magic Avatar” tool, you’ll pay an additional $3.99 for 50 images.

Here’s how to try it for yourself.

How to create digital art with Lensa

There has been a boom in generative AI in recent months with releases like ChatGPT and Dall-E. ChatGPT, which also recently went viral, is an AI chatbot that has a lot of promise. You can ask it to write poems and stories or use it to answer questions. Dall-E, which is created by OpenAI, the same organization as ChatGPT, is an AI-powered text-to-image generator. You type in some words and it creates an image.

Lensa operates using the open-source image generator called Stable Diffusion. Here’s how to get started.

  • Download Lensa AI for iPhone or Android.
  • Open the app.
  • Click the ‘Photos’ tab.
  • You’ll see a yellow button that says ‘Magic Avatars.’
  • It’ll warn you that there may be inaccuracies in images, like defects and artifacts, so you have to acknowledge those terms before you continue. Some of these inaccuracies include creating images with multiple heads or limbs. This didn’t happen to me, although I did see some pictures that generated two different eye colors.

Lensa’s “What to Expect” page.

Sofia Pitt

  • After you click “continue,” you’ll be asked to upload 10 to 20 selfies. The app recommends using close-ups, pictures of adults, a variety of backgrounds and facial expressions. It advises users to avoid group shots, kid pictures, covered faces and nude pictures.
  • The app says “Photos will be immediately deleted from our servers after the Avatars are ready.”
  • After selecting 10-20 selfies, you’ll be asked to select your gender.
  • It’s time to pay. If you’re a subscriber, prices are 51% off, so 50 avatars cost $3.99, 100 pictures cost $5.99 and 200 images cost $7.99.
  • After 20 minutes or so you’ll be notified that your avatars are ready for viewing and saving. You’ll receive avatars in a variety of different styles like Fantasy, Fairy Princess, Focus, Pop, Stylish, Anime, Light, Kawaii, Iridescent and Cosmic.

Here are some of my results:

Fairy Princess Avatar Lensa.

Sofia Pitt

Lensa stirs privacy and copyright concerns

Artists have accused the company behind the app of stealing artwork from digital creators. Jon Lam, a storyboard artist at Riot Games, explained to NBC News that AI models are trained using other people’s artwork. Worse, Lauryn Ipsum, a graphic designer noted in a Tweet on Dec. 5 that artists’ signatures are still visible, albeit scrambled, on some images. I noticed this, too.

In a Twitter thread on Dec. 6, Prisma Labs tried to address some of those concerns. “The AI learns to recognize the connections between the images and their descriptions, not the artworks,” it said. “This way the model develops operational principles that can be applied to content generation. Hence the outputs can’t be described as exact replicas of any particular artwork.”

Lensa generated avatar appears to show artist’s signature.

Sofia Pitt

Some privacy experts are concerned the Lensa app could keep the photos you upload, even though it says it doesn’t.

“As soon as the avatars are generated, the user’s photos and the associated model are erased permanently from our servers, the company said on Twitter. “And the process would start over again for the next request.”

But any app that collects data from a phone could lift other private data. In Pisma Labs’ terms of service, the company says it doesn’t “require or request any metadata attached to the photos you upload, metadata (including, for example, geotags) may be associated with your photos by default.” Meaning it’s unclear whether or not you’re sharing location or personal data with the app, even if you’re doing so unintentionally.

Prisma Labs, the owner of Lensa did not immediately respond to CNBC’s request for comment on the privacy and copyright concerns.

Subscribe to CNBC on YouTube. 

Continue Reading

Technology

Apple’s services unit is now a $100 billion a year juggernaut after ‘phenomenal’ growth

Published

on

By

Apple's services unit is now a 0 billion a year juggernaut after 'phenomenal' growth

Apple CEO Tim Cook (C) joins customers during Apple’s iPhone 16 launch in New York on September 20, 2024. 

Timothy A. Clary | Afp | Getty Images

Apple’s second-largest division after the iPhone has turned into a $100 billion a year business that Wall Street loves.

In Apple’s earnings report on Thursday, the company said it reached just under $25 billion in services revenue, an all-time high for the category, and 12% growth on an annual basis.

“It’s an important milestone,” Apple CFO Luca Maestri said on a call with analysts. “We’ve got to a run rate of $100 billion. You look back just a few years ago and the the growth has been phenomenal.”

Apple first broke out its services revenue in the December quarter of 2014. At the time, it was $4.8 billion.

Apple’s services unit has become a critical part of Apple’s appeal to investors over the past decade. Its gross margin was 74% in the September quarter compared to Apple’s overall margin of 46.2%.

Services contains a wide range of different offerings. According to the company’s SEC filings, it includes advertising, search licensing revenue from Google, warranties called AppleCare, cloud subscription services such as iCloud, content subscriptions such as the company’s Apple TV+ service, and payments from Apple Pay and AppleCare.

On a January 2016 earnings call, when the reporting segment was relatively new, Apple CEO Tim Cook told investors to pay attention.

“I do think that the assets that we have in this area are huge, and I do think that it’s probably something that the investment community would want to and should focus more on,” Cook said.

Over the years, Apple has compared its services business to the size of Fortune 500 companies, which are ranked by sales, to give a sense of its scale. After Thursday, Apple’s services business alone, based on its most recent run rate, would land around 40th on the Fortune 500, topping Morgan Stanley and Johnson & Johnson.

Services appeals to investors because many of the subscriptions contained in it are billed on a recurring basis. That can be more reliably modeled than hardware sales, which will increase or decrease based on a given iPhone model’s demand.

“Yes, the the recurring portion is growing faster than the transactional one,” Maestri said on Thursday.

Apple’s fourth-quarter results beat Wall Street expectations for revenue and earnings on Thursday, but net income slumped after a one-time charge as part of a tax decision in Europe. The stock fell as much as 2% in extended trading.  

Apple boasts to investors that its sales from Services will grow alongside its installed base. After someone buys an iPhone, they’re likely to sign up for Apple’s subscriptions, use Safari to search Google, or buy an extended warranty.

Apple also cites a “subscription” figure that includes both its first-party services, such as Apple TV+ subscriptions, and users who sign up to be billed by an App Store app on a recurring basis.

The company said the installed base and subscriptions hit all-time-highs, but didn’t give updated figures. Apple said it had 2.2 billion active devices in February, and in August said it had topped 1 billion paid subscriptions.

Still, Apple faces questions about how long its services business can continue growing at such a rapid rate. Between 2016 and 2021, the unit sported significantly higher growth, reaching 27.3% at the end of that stretch.

In fiscal 2023, services growth dropped to 9.1% for the year, before recovering to about 13% the next year. Apple told investors that it expected services growth in the December quarter to be about what it was in fiscal 2024.

Cook was asked on Thursday what Apple could do to make some of its services and its Apple One subscription bundle grow faster.

“There’s lots of customers to try to convince to take advantage of it,” Cook said. “We’re going to continue investing in the services and adding new features. Whether it’s News+ or Music or Arcade, that’s what we’re going to do.”

WATCH: Apple has a big leg up in AI

Apple has a big leg up in AI compared to other smartphone makers, says Fmr. Executive Tony Fadell

Continue Reading

Technology

Amazon CEO pledges AI investments will pay off as capital expenditures surge 81%

Published

on

By

Amazon CEO pledges AI investments will pay off as capital expenditures surge 81%

Amazon CEO, Andy Jassy speaking with CNBC’s Jim Cramer on Mad Money in Seattle, WA. on Dec. 6th, 2023.

CNBC

Amazon CEO Andy Jassy is trying to reassure investors who may be worried about the future payoff of the company’s massive investments in generative artificial intelligence.

On a conference call with analysts following the company’s third-quarter earnings report on Thursday, Jassy pointed to the success of Amazon’s cloud computing business, Amazon Web Services, which has become a crucial profit engine despite the extreme costs associated with building data centers.

“I think we’ve proven over time that we can drive enough operating income and free cash flow to make this a very successful return on invested capital business,” Jassy said. “We expect the same thing will happen here with generative AI.”

Amazon spent $22.6 billion on property and equipment during the quarter, up 81% from the year before. Jassy said Amazon plans to spend $75 billion on capex in 2024 and expects an even higher number in 2025.

The jump in spending is primarily being driven by generative AI investments, Jassy said. The company is rushing to invest in data centers, networking gear and hardware to meet vast demand for the technology, which has exploded in popularity since OpenAI released its ChatGPT assistant almost two years ago.

“It is a really unusually large, maybe once-in-a-lifetime type of opportunity,” Jassy said. “And I think our customers, the business and our shareholders will feel good about this long term that we’re aggressively pursuing it.”

AI spending was a big topic on tech earnings calls this week. Meta on Wednesday raised its capital expenditures guidance, and CEO Mark Zuckerberg said he was “quite happy” with the team’s execution. Meanwhile, Microsoft‘s investment in OpenAI weighed on its fiscal first-quarter earnings released on Wednesday, and the company said capital spending would continue to rise. A day earlier, Alphabet CFO Anat Ashkenazi warned the company expects capital spending to grow in 2025.

Amazon has said its cloud unit has picked up more business from companies that need infrastructure to deploy generative AI models. It’s also launched several AI products for enterprises, third-party sellers on its marketplace and advertisers in recent months. The company is expected to announce a souped-up version of its Alexa voice assistant that incorporates generative AI, something Jassy said will arrive “in the near future.”

Amazon hasn’t disclosed its revenue from generative AI, but Jassy said Thursday it’s become a “multi-billion-dollar revenue run rate” business within AWS that “continues to grow at a triple-digit year-over-year percentage.”

“It’s growing more than three times faster at this stage of its evolution as AWS itself grew, and we felt like AWS grew pretty quickly,” he added.

WATCH: Mag 7 are value and growth stocks

'Mag 7' are both value and growth stocks in today's winner-takes-all market: Constellation's Ray Wang

Continue Reading

Technology

Amazon’s cloud unit records highest profit margin in at least a decade

Published

on

By

Amazon's cloud unit records highest profit margin in at least a decade

Matt Garman, CEO of Amazon Web Services, speaks during The Wall Street Journal’s Tech Live conference in Laguna Beach, California, on Oct. 21, 2024.

Frederic J. Brown | AFP | Getty Images

Amazon said revenue in its cloud unit increased 19% in the third quarter, just missing analyst estimates.

Revenue at Amazon Web Services totaled $27.45 billion, according to a statement Thursday, while Wall Street was expecting $27.52 billion, based on StreetAccount estimates. Year-over-year growth has accelerated for five consecutive quarters.

The artificial intelligence portion of AWS is in the billions of dollars in annualized revenue, more than doubling year over year, Amazon CEO Andy Jassy, who previously led AWS, said on a call with analysts.

“I believe we have more demand than we could fulfill if we had even more capacity today,” Jassy said. “I think pretty much everyone today has less capacity than they have demand for, and it’s really primarily chips that are the area where companies could use more supply.”

AWS leads the cloud infrastructure market over Google and Microsoft and is an important source of profit for Amazon.

On Tuesday, Google parent Alphabet said revenue from Google Cloud, which includes cloud applications as well as infrastructure, totaled $11.35 billion, up 35%. Microsoft said Wednesday that revenue from Azure and other cloud services grew 33%.

AWS recorded $10.45 billion in operating income, representing 60% of its parent’s profit. Analysts expected $9.15 billion.

The unit’s operating margin came in at 38%, the widest for AWS since at least 2014. Google Cloud reported an operating margin of 17%.

“We’re being very measured in our hiring,” Brian Olsavsky, Amazon’s finance chief, said on the call.

During the quarter, Oracle said it will bring database services to AWS.

“If this is successful, we would love to find more pieces of their application stack that could run well in AWS and help customers do that,” AWS CEO Matt Garman told CNBC in a September interview.

Also in the quarter, AWS announced plans to discontinue some services, including code-repository tool CodeCommit. Garman told TechCrunch that AWS “can’t invest in everything.”

WATCH: Databricks drives more than $1 billion revenue on AWS, says Databricks’ Naveen Rao

Databricks drives over $1B revenue on AWS, says Databricks' Naveen Rao

Continue Reading

Trending