Luis Poveda's AI Newsletter: June 23, 2025

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This week marks a pivotal moment in AI's corporate transformation as Apple considers its largest acquisition ever with a potential $14 billion bid for Perplexity AI to challenge Google's search dominance, while creative powerhouse Midjourney enters the video generation race with its debut V1 model, and Amazon becomes the first major tech giant to explicitly announce workforce reductions due to AI automation, signaling a fundamental shift in how corporations view AI's role in replacing rather than just augmenting human work.

Apple Eyes $14 Billion Perplexity Deal in Search Engine Power Play

Apple executives have held internal discussions about potentially acquiring AI search startup Perplexity AI in what would be the company's largest acquisition ever, as the tech giant seeks to reduce its dependence on Google and build its own AI-powered search capabilities. The discussions, led by Apple's head of mergers and acquisitions Adrian Perica alongside services chief Eddy Cue, represent a strategic response to potential antitrust threats against Apple's lucrative $20 billion annual partnership with Google for default search placement. While the talks remain preliminary and may not result in an offer, the move would provide Apple with critical AI talent, an established consumer brand in the AI space, and technology that could power future versions of Siri and Safari's search functionality.

• Bloomberg: Apple Executives Have Held Internal Talks About Buying AI Startup Perplexity

• Reuters: Apple executives held internal talks about buying Perplexity

Midjourney Launches Video Generation Model V1, Enters Competitive AI Video Race

Midjourney unveiled its highly anticipated AI video generation model V1, marking the company's expansion from static image creation into dynamic video content and positioning itself against established players like OpenAI's Sora and Runway's Gen 4. The image-to-video model allows users to generate four five-second clips from uploaded or Midjourney-created images, with capabilities for extending videos up to 21 seconds total and customizable motion controls ranging from subtle animations to high-motion sequences. The launch comes amid legal challenges from Disney and Universal, who sued Midjourney for alleged copyright infringement, yet the company remains focused on its broader vision of creating AI models capable of real-time open-world simulations rather than just commercial video production.

• TechCrunch: Midjourney launches its first AI video generation model, V1

• VentureBeat: 'Surpassing all my expectations': Midjourney releases first AI video model amid Disney, Universal lawsuit

Amazon CEO Signals Corporate Job Reductions as AI Agents Automate Work

Amazon CEO Andy Jassy became the first major tech leader to explicitly state that AI automation will lead to workforce reductions, telling employees in an internal memo that the company expects to need fewer people in traditional corporate roles as AI agents reshape how work is performed. The announcement represents a significant shift from the typical tech industry narrative of AI augmentation to one of direct replacement, with Jassy acknowledging that while some jobs will be eliminated, others will be created, though he noted the scale of reductions is difficult to estimate. This landmark statement aligns with recent World Economic Forum research showing 40% of employers plan to cut staff in roles that can be automated by AI, potentially accelerating a trend that could reshape corporate employment across the technology sector.

• TechCrunch: Amazon expects to reduce corporate jobs due to AI

• The Washington Post: Amazon CEO tells employees that AI will shrink its workforce

Why “The Human in the Loop” Still Matters in an AI World

This week, Amazon’s CEO, Andy Jassy, is saying what many big corporations and multimillion-dollar companies might be thinking. No, it’s not that AI can replace thousands of jobs, it’s that AI could help them increase their already insanely high profit margins.

At the same time, OpenAI and Mark Zuckerberg’s Meta are spending millions of dollars trying to attract the best AI talent, while Apple is trying to save itself by doing what it always does: buying a company, just like it did with Siri, for example. In general, it doesn’t make much sense.

My advice? Get into AI. Try to use it for your own benefit and for the benefit of the rest of us. And don’t forget: “the human in the loop” has always been necessary to win the most important battles in history.

This week's developments signal a decisive moment in AI's corporate evolution, where speculation gives way to concrete action across acquisition strategies, creative tool capabilities, and workforce planning. Apple's potential Perplexity acquisition would reshape the search landscape and demonstrate how AI talent has become the new currency of competitive advantage, while Midjourney's video model launch proves that AI creativity tools are rapidly expanding beyond their original domains. Most significantly, Amazon's frank acknowledgment of AI-driven job reductions breaks the industry's careful diplomatic language around employment impact, potentially opening the floodgates for more honest discussions about AI's role in reshaping the modern workplace and forcing both companies and workers to confront the reality of an AI-first future.

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