In this newsletter:

• OpenAI may launch AI earbuds that run locally without cloud processing
• ElevenLabs drops AI music album with full creative rights + revenue for artists
• YouTube lets creators make AI clones of themselves for Shorts

Plus, you’ll find new AI tools and this week’s top AI news headlines!

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🎧 OpenAI May Launch AI Earbuds That Run Locally Without Cloud Processing

OpenAI plans to announce its first device in the second half of 2026, with reports suggesting AI-powered earbuds codenamed "Sweet Pea" that handle tasks locally on a custom 2-nanometer processor.

What's new:

• OpenAI Chief Global Affairs Officer Chris Lehane said at the Davos panel that the device announcement is on track for the second half of 2026.
• Asian publications and leakers report that the device is a pair of earbuds codenamed "Sweet Pea."
• Earbuds will have a unique design compared to existing earbuds on the market.
• Custom 2-nanometer processor will handle AI tasks locally instead of sending requests to cloud.
• Taiwanese newspaper reports OpenAI exploring manufacturing partnership with China-based Luxshare, but may choose Taiwan's Foxconn.
• OpenAI is targeting 40 to 50 million units in the first year of sales.
• Sam Altman said in November device will be more "peaceful and calm" than iPhones.
• Earlier reporting said OpenAI wants a screen-free and pocketable device.
• OpenAI acquired former Apple design head Jony Ive's startup io last year to develop hardware.
• ChatGPT has nearly a billion weekly users, but the company relies on other devices and platforms for distribution.
• Own device gives OpenAI control over AI assistant development, distribution, and the ability to release exclusive features.
• OpenAI faces an uphill battle as no AI device has succeeded yet - Humane AI Pin sold to HP, Rabbit struggling after 2024 hype, Friend AI necklace faced swift backlash.

Why it matters:

OpenAI is betting it can succeed where other AI hardware startups failed by combining Jony Ive's design expertise with local AI processing that doesn't require constant cloud connectivity.

With nearly a billion weekly ChatGPT users already dependent on other companies' devices, OpenAI wants to control the entire experience - but replacing AirPods in users' daily lives will be challenging without strong operating system integration.

👀 Read more about the OpenAI Hardware announcement!

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🎵 ElevenLabs Drops AI Music Album With Grammy Winners Who Keep 100% Streaming Revenue

AI voice-cloning company ElevenLabs just released a full-length AI music album with Grammy winners Liza Minnelli and Art Garfunkel retaining full creative control and all streaming revenue as an answer to AI music backlash.

What's new:

• "The Eleven Album" was created using ElevenLabs' Eleven Music model with Liza Minnelli, Art Garfunkel, Michael Feinstein, IAMSU!, Kondzilla, and Nashville songwriter Emily Falvey.
• Available now at elevenlabs.io/eleven-album and on Spotify.
• ElevenLabs calls it the first large-scale, artist-led AI music project built with a "creator-first, rights-secure framework."
• Artists retain full control over their work and keep 100% of streaming revenue.
• Musicians represent over 1 billion streams, multiple Grammy Awards, and decades of influence, according to CEO Mati Staniszewski.
• Emily Falvey used tech to generate a tropical house track, calling it "a joyful and empowering experience."
• Michael Feinstein says, "People who look at AI as a threat are not seeing the potential with art direction and guidance."
• ElevenLabs is valued at potentially $11 billion, one of Europe's most valuable AI companies.
• Matthew McConaughey is an ElevenLabs investor and user who secured U.S. trademarks for image, voice, and catchphrase to combat unauthorized AI use.

Why it matters:

ElevenLabs is positioning AI music as creator-empowering rather than creator-replacing by giving artists full control and all revenue while AI handles production, directly challenging AI music backlash as Breaking Rust's AI-generated "Walk My Walk" hits No. 1 on Billboard and AI actress Tilly Norwood prompts Emily Blunt to say "we're screwed."

The album frames AI as an expansion of creative tools, but skepticism remains high as actors and musicians watch AI clones rack up streams and threaten livelihoods.

👀 Read more about ElevenLabs AI Music Album!

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📹 YouTube Lets Creators Make AI Clones of Themselves for Shorts

YouTube will soon allow creators to make Shorts using AI versions of their own likeness while also providing tools to prevent others from using it without permission.

What's new:

• YouTube CEO Neal Mohan announced that creators will soon make Shorts using their own AI avatars in the annual letter.
• Feature launching this year, alongside the ability to produce games with text prompts and experiment with music.
• Mohan said, "AI will remain a tool for expression, not a replacement."
• YouTube Shorts now averages 200 billion daily views.
• New capability joins existing AI tools for Shorts, including AI clips, AI stickers, and AI auto-dubbing.
• YouTube will equip creators with new tools to manage the use of their clones in AI-generated content.
• Platform also expanding Shorts with new formats, including image posts (already popular on TikTok and Instagram Reels).

Protection tools already in place:

• YouTube rolled out likeness-detection technology in October to eligible creators to identify AI-generated content featuring their face and voice.
• Creators can request the removal of unauthorized AI-generated content using their likeness.
• Platform working to combat AI slop by building on established systems that fight spam and clickbait.
• Reducing the spread of low-quality, repetitive AI content.

Why it matters:

YouTube is trying to walk the line between empowering creators with AI tools and protecting them from unauthorized AI clones. The company is betting that creators want to make AI versions of themselves to produce more content faster, while simultaneously building detection systems to stop others from doing the same thing without permission.

With 200 billion daily Shorts views, YouTube needs to solve the AI authenticity problem before feeds fill with low-quality AI slop that viewers can't distinguish from real creators.

👀 Read more about the YouTube AI avatar announcement!

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My Latest LinkedIn & X/Twitter Posts:

• How to turn a PowerPoint into a full video with voiceover with AI (view post)
• Top 9 essential AI skills to master (view post)
• 38 free AI prompts for growth marketing & paid media (view post)
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New AI Tools to Boost Your Productivity:

• ​AIVideoGenerator: Generates videos from text and images.
• ​Picrafts: Edits images using text prompts.
• ​thepromptchallenge: Provides daily AI prompt challenges.
• ​Drumics: Creates music from text or images.
• ​X‑Pilot: Turns documents into course videos.
• ​Kontentino: Plans and writes social posts with AI.
• ​Himala: Automates meeting scheduling, notes, and follow-ups.
• ​Kolva: Manages tasks and transcribes meetings.
• ​AIMusixer: Generates original music tracks.
• ​Social Echo: Creates branded social media posts.
• ​YouTube Transcript Generator: Converts YouTube videos into transcripts.
• ​Sorai: Trains users to delegate tasks to AI.
• ​CreateMV: Turn any photo and audio track into AI music videos.
• ​FlashSlides: Builds slide decks from text prompts.
• ​Img-2-Img: Transforms images with AI styles.

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This Week's Top AI News Headlines:

• Google’s AI Mode Can Now Tap into Gmail and Photos to Provide Tailored Responses and Personal Insights Across Apps (View Article)
• OpenAI Appoints Enterprise Lead and Reorganizes to Chase Major Corporate AI Deals and “Sweet” Enterprise Revenue Growth in 2026 (View Article)
• Voice AI Engine and OpenAI‑Backed LiveKit Hits $1B Valuation After Growing Demand For Real‑Time Conversational and Audio Tools (View Article)
• Humans, a Human-Centric AI Startup Founded by Anthropic, xAI, and Google Veterans, Says Coordination is the Next Frontier and Debuts Model for Multi-Agent Collaboration (View Article)
• Google Now Offers Free SAT Practice Exams Powered by Gemini AI to Help Students Prepare With Personalized, Adaptive Test Questions (View Article)
• Google Snags Team Behind AI Voice Startup Hume AI to Bolster DeepMind’s Gemini Voice Features With CEO and Engineers Joining Under Licensing Deal (View Article)
• Anthropic Keeps Revising Its Technical Interview Test, So Candidates Can’t Cheat With Claude and Preserve Assessment Integrity (View Article)
• Spotify Brings AI‑Powered Prompted Playlists to the U.S. and Canada To Let Users Generate Curated Music Mixes From Simple Text Prompts (View Article)
• Former Google Trio Builds Interactive AI‑Powered Learning App for Kids With Personalized Lessons and Playful Educational Tools (View Article)
• Apple Reportedly Developing AirTag‑Sized AI Wearable Pin With Cameras, Microphones, and Speaker to Compete With OpenAI’s Hardware Push in Emerging AI Wearables Market (View Article)
• Todoist, a Popular Productivity App for Task Management, Adds Voice AI Assistant to Let Users Add and Organize To‑Dos Hands‑Free Using Natural Language (View Article)
• OpenEvidence, the AI Medical Search Platform for Doctors, Doubles Valuation to $12 Billion After $250 M Funding Round as Physician Adoption Surges (View Article)
• Julie Teigland, EY EMEIA Managing Partner, Says Firms Must Invest in Real People and Reskill Workforce to Unlock AI Productivity Gains, Speaking at Davos 2026 (View Article)

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Have a wonderful week!

Andrew Bolis

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