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Apple & Google Gemini, GPT-5.4, Search AI answers

This edition reveals Apple's groundbreaking integration of Google Gemini, alongside Google's introduction of Gemini 3.1 Ultra and its rollout to Search. OpenAI also unveils GPT-5.4 with a vast context window, intensifying the AI model race.

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PiBrief Tech, June 10, 2026

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Google Introduces Gemini 3.1 Ultra with 2 Million Token Context Window and Multimodal Reasoning

Google has unveiled Gemini 3.1 Ultra, boasting an unprecedented 2 million token context window and native multimodal reasoning. This model can ingest and process significantly more information than previous models, seamlessly integrating text, images, audio, and video. It also includes a sandboxed code execution tool for testing and debugging.

On June 10, 2026, Google unveiled Gemini 3.1 Ultra, a powerful new iteration of its AI model, featuring an unprecedented 2 million token context window. This monumental context capacity is complemented by native multimodal reasoning capabilities and a sandboxed code execution tool, setting a new benchmark for comprehensive AI understanding and functionality.[1]

The 2 million token context window in Gemini 3.1 Ultra doubles the impressive capacity of OpenAI's GPT-5.4, allowing the model to ingest and process an enormous amount of information in a single query or conversation. This is particularly transformative for applications requiring deep contextual understanding across very long documents, extensive codebases, or protracted dialogues. Paired with native multimodal reasoning, Gemini 3.1 Ultra can seamlessly integrate and interpret information from text, images, audio, and video inputs, offering a truly holistic understanding of complex scenarios. This multimodal capability is becoming a default expectation for frontier AI models in 2026.[1][2]

This release solidifies Google's position as a leader in foundational AI model development. The inclusion of a sandboxed code execution tool further enhances its utility, allowing the model to not only generate code but also to test and debug it within a secure environment, drastically improving reliability and reducing potential errors in software development applications. The impact of Gemini 3.1 Ultra will be felt across numerous industries, from enabling more intelligent enterprise search and advanced data analysis to powering highly sophisticated AI agents that can manage intricate workflows and support complex decision-making processes across diverse data landscapes.[1][3]

Apple Integrates Google Gemini for New Foundational Models at WWDC 2026

Apple announced its third-generation Foundational Models (AFM 3) at WWDC 2026, powered by a significant partnership with Google's Gemini technology. This collaboration integrates Google's advanced models into Apple's AI strategy, underpinning features across its ecosystem. The new models include on-device and cloud-based variants, with a focus on enhanced user privacy.

At its Worldwide Developers Conference (WWDC) on June 9, 2026, Apple announced the release of its third generation of Apple Foundational Models (AFM), a new family of five generative AI models built in a significant partnership with Google's Gemini technology[1][2]. This collaboration marks a pivotal shift in Apple's artificial intelligence strategy, integrating Google's advanced foundational models as the underlying technological bedrock for Apple's AI features[3][2]. The new AFM 3 series comprises two on-device models, AFM 3 Core and AFM 3 Core Advanced, and three cloud-based variants: AFM 3 Cloud, AFM 3 Cloud (Image), and the highly capable AFM 3 Cloud Pro[1].

The strategic alliance between Apple and Google, initially rumored and then confirmed on January 12, 2026, reportedly involves a multi-year, billion-dollar agreement providing Apple access to a custom Gemini model with an estimated 1.2 trillion parameters[2]. While the branding remains "Apple Foundational Models," the training was executed on Google's cloud TPUs, with hosting facilitated through Apple's Private Cloud Compute infrastructure[2]. A crucial aspect emphasized by Apple is its unwavering commitment to user privacy, asserting that user data will "never be stored or shared - not even with Apple," a guarantee Google has confirmed even when using Google Cloud and Nvidia GPUs. [1][2] The immediate technical implications of this release are substantial, particularly for Apple's ecosystem. The AFM 3 series is poised to redefine on-device AI capabilities across iPhones, Macs, iPads, Apple Watches, and even AirPods. [1] This foundational upgrade underpins the eagerly anticipated revamp of Siri AI, transforming it into a more conversational, context-aware, and highly capable assistant able to execute multi-step actions across various applications. [1][4][2] Beyond Siri, the models power advanced photo editing tools, including "Spatial Reframing" for post-capture perspective shifts and an enhanced "Extend" tool for expanding image borders. [5] The Image Playground, Apple's AI image generation tool, now offers photorealistic output and more flexible editing, with generated images incorporating a hidden SynthID watermark for authenticity. [5] Early benchmarks indicate a notable performance leap, with AFM 3 Core preferred over its predecessor in 45.6% of general text tasks during human evaluations. [2] This partnership underscores the intensifying competition and consolidation within the generative AI landscape, where even tech giants are leveraging external expertise for core AI development. By integrating Google's Gemini, Apple can rapidly accelerate its AI initiatives, bringing advanced, agentic capabilities directly to its vast user base while maintaining its stringent privacy standards. This move is expected to significantly influence user expectations for integrated, intelligent experiences across personal devices, pushing the boundaries of what is possible with on-device and private cloud AI processing.

Google Search Transitions to Gemini 3.5 Flash for AI-Generated Answers

Google Search is transforming its user experience by transitioning to Gemini 3.5 Flash for AI-generated answers, moving away from a traditional "link-first" approach. This update provides users with direct, synthesized answers from AI, aiming to enhance immediate insights and reduce the need to browse multiple websites.

Google Search is undergoing a profound transformation with its transition to Gemini 3.5 Flash, a new system that leverages AI-generated answers to fundamentally alter the traditional "link-first" search experience. This significant update, highlighted on June 10, 2026, signifies Google's continued commitment to integrating generative AI directly into its core products, providing users with more direct and comprehensive answers.[1]

This shift in Google Search marks a paradigm change in how users interact with information online. Rather than merely presenting a list of links, Gemini 3.5 Flash will synthesize information from various sources to provide direct, concise, and often multimodal answers generated by AI. This aims to enhance the user experience by offering immediate insights and reducing the need to navigate multiple websites to find desired information. The underlying generative AI models are trained to understand complex queries and provide relevant, summarized responses.[1]

Google, as the dominant search engine provider, is a central player in this evolution. The implications for content creators, publishers, and businesses are substantial, as the visibility and interaction models within search results will change. While the shift aims to improve user satisfaction, it also raises questions about content attribution and traffic patterns to external websites. This move builds on Google's prior integrations of generative AI into its advertising platforms, indicating a broader strategy to embed AI throughout its digital ecosystem and transform how information is accessed and consumed by billions of users worldwide.[1]

OpenAI Unveils GPT-5.4 with Expansive 1 Million Token Context Window

OpenAI has launched GPT-5.4, a frontier model featuring a 1 million token context window, enabling it to process and generate vastly longer and more complex information. This model also achieved a 75% score on OS World V, surpassing the human baseline. This significant increase in context length is crucial for applications requiring coherence over extended documents, conversations, or codebases.

On June 10, 2026, OpenAI's latest frontier model, GPT-5.4, garnered significant attention with the announcement of its remarkable 1 million token context window. This substantial increase in context length allows the model to process and generate vastly longer and more complex pieces of information, representing a significant leap forward in large language model capabilities. Furthermore, GPT-5.4 achieved an impressive score of 75% on OS World V, surpassing the human baseline of 72.4%.[1]

The expansion of the context window is a critical development for generative AI, enabling applications to maintain coherence and draw insights from much larger documents, conversations, or codebases. For enterprises, this means AI can now handle entire legal contracts, comprehensive research papers, lengthy customer interaction histories, or extensive software projects without losing track of crucial details. This capability directly supports the ongoing shift towards "agentic workflows," where AI agents need to understand and operate within complex, long-horizon tasks.[1][2]

OpenAI, a leading player in the generative AI space, continues to push the boundaries of what large language models can achieve. The performance on OS World V, a benchmark testing agents on real computer tasks, highlights the model's enhanced ability to interact with operating systems and perform practical functions. The implications are far-reaching, from more sophisticated content creation and summarization to advanced code generation, research analysis, and even the development of more capable autonomous agents that can manage intricate, multi-step operations with greater reliability and understanding.[1]

Google Releases Gemma 4 12B for On-Device Multimodal AI

Google has launched Gemma 4 12B, a new generative AI model designed for on-device multimodal agentic workflows. It features a unique unified, multimodal encoder-free architecture that ingests vision and audio data directly into the LLM without separate processing steps. This design aims to reduce latency and improve efficiency for AI on consumer devices.

Google has released Gemma 4 12B, a new generative AI model engineered for on-device, multimodal agentic workflows, featuring a groundbreaking unified, multimodal encoder-free architecture. [1] This innovative design directly ingests multimodal data, including vision and audio, into the large language model (LLM) without the need for separate, multi-stage encoders. This architectural simplification addresses longstanding inefficiencies in traditional multimodal models, which often suffer from increased latency and fragmented memory footprints due to their reliance on distinct processing steps for different data types. [1] The core technical advancement in Gemma 4 12B lies in its single decoder-only transformer structure, which integrates the advanced decoder capabilities found in the larger Gemma 4 31B Dense model. [1] Instead of a bulky 27-layer vision transformer, a compact 35-million-parameter vision embedder projects raw 48x48 pixel patches directly into the LLM's hidden space using a single matrix multiplication. Spatial positional information is injected efficiently through a factorized X-Y coordinate lookup during the input stage. [1] Similarly, for audio, a direct wave projection eliminates the need for a separate audio encoder by linearly projecting sliced 16 kHz audio frames into the LLM input space. [1] This streamlined architecture is designed to bring sophisticated agentic, multimodal intelligence directly to consumer laptops and everyday machines, allowing for local development and experimentation through integration with Google AI Edge. [1] The use of consistent weights for all multimodal inputs further simplifies fine-tuning processes, enabling adapters like LoRA or full tuning to update the entire multimodal pipeline in a single pass. [1] Google has already demonstrated the model's capacity to perform complex tasks, such as generating a Python program to create a PNG chart based on visual input, highlighting its potential for autonomous data processing and visual insight generation. [1] The implications of Gemma 4 12B are significant for the broader generative AI landscape. By reducing latency and memory fragmentation, Google is pushing the boundaries of what is achievable with efficient, on-device multimodal AI, making advanced capabilities more accessible and private. The model's availability through platforms like Hugging Face, Ollama, LM Studio, and Google Cloud, alongside its compatibility with existing harnesses like OpenCode, fosters broader adoption and further innovation in agent-based AI systems that interact seamlessly across various data modalities. [1]

ChatGPT's 'Dreaming V3' Enhances Personalization with New Memory Architecture

OpenAI has upgraded ChatGPT's memory system with 'Dreaming V3,' which autonomously synthesizes conversational history into user context rather than relying on manual saving. This new architecture dynamically refreshes memories as facts change, creating a more personalized and seamless experience for users. The rollout has begun for premium subscribers.

On June 9, 2026, reports highlighted a significant architectural upgrade to ChatGPT's memory system, dubbed "Dreaming V3," which was initially launched by OpenAI on June 4, 2026. [1] This new memory architecture represents a fundamental shift in how ChatGPT retains and utilizes user context, moving from a manual memory-saving process to an automated, intelligent synthesis of conversational history. [1] Dreaming V3 runs a background process after every interaction, autonomously identifying and integrating relevant user information, including preferences, ongoing projects, working styles, and time-sensitive context. [1] The core innovation of Dreaming V3 lies in its "memory self-update" feature, which dynamically refreshes memories as facts or circumstances change over time. [1] Unlike previous iterations where users had to actively manage what the chatbot remembered, this passive yet persistent memory system aims to create a more personalized and seamless conversational experience. This architectural enhancement is particularly crucial for maintaining continuity across extended interactions and ensuring that past references remain relevant to current discussions, drastically improving the chatbot's ability to act as a consistent and knowledgeable assistant. The background to this architectural overhaul stems from the increasing demand for AI assistants that can genuinely understand and adapt to individual users over time, transcending single-turn responses. Conventional chatbots often struggle with long-term context, leading to repetitive questions or a disjointed experience. OpenAI's response with Dreaming V3 directly addresses this limitation, treating memory as a dynamic and evolving component of the AI's understanding. Internal evaluations conducted by OpenAI underscore the efficacy of this new architecture, revealing a notable improvement in factual recall from 67.9% to 82.8%. [1] The immediate impact of Dreaming V3 is already being felt by hundreds of millions of ChatGPT users, with the rollout beginning for Plus and Pro subscribers in the US. [1] This enhancement promises to make ChatGPT significantly more effective and user-friendly for complex, multi-turn tasks, fostering deeper engagement and reducing the cognitive load on users to constantly re-establish context. For the broader generative AI industry, Dreaming V3 sets a new benchmark for memory management and personalization in conversational AI, highlighting the importance of robust architectural solutions for persistent context retention in the pursuit of more human-like and truly helpful AI agents.

Anthropic Releases Claude Fable 5 with Advanced Safety for Public Use

Anthropic has publicly released Claude Fable 5, its most powerful AI model available to the general public. This model, built on the architecture of the highly restricted Mythos 5, offers enhanced capabilities in long-context processing and complex reasoning. Anthropic implemented a unique safety feature that reroutes sensitive queries to an older model without user notification.

On June 9, 2026, Anthropic made a significant move in the generative AI space by releasing Claude Fable 5 to the general public, marking it as the most powerful AI model the company has made widely available outside of controlled access programs. [1] Built upon the identical underlying architecture as the highly restricted Mythos 5, Fable 5 represents a qualitative leap in performance, particularly in long-context processing and multi-turn reasoning for complex tasks like software engineering. [1] This release comes after Mythos 5, launched in April, garnered global alarm for its potent vulnerability-hunting capabilities, leading Anthropic to keep it under a restricted access program known as Project Glasswing. [1] The defining characteristic of Claude Fable 5's architecture and deployment strategy is the "surgical removal" of its cybersecurity exploitation and bioweapon-related capabilities for public access. [1] Anthropic has implemented an innovative and sophisticated safety mechanism: if a user queries Fable 5 on topics related to cybersecurity exploitation, biological research with weapons applications, or other dual-use domains, the system automatically and silently reroutes the query to Claude Opus 4.8, a previous-generation model that lacks these sensitive functionalities. [1] This "model swap" happens without explicit user notification, ensuring that the powerful underlying architecture can be leveraged for beneficial applications while mitigating potential misuse. This advanced architectural design reflects Anthropic's proactive approach to responsible AI deployment, addressing the critical challenge of safely bringing frontier models to a broad audience. The background to this decision stems from the unprecedented capabilities of Mythos 5, which reportedly identified over 10,000 previously unknown software vulnerabilities across various critical systems. [1] Such power necessitated an innovative solution for public release that balanced utility with safety. Brianne Penn, Anthropic's head of model management, highlighted this unique guardrail to Reuters, emphasizing that the mechanism is a transparent model transition rather than just a warning message. [1] The impact of Claude Fable 5 is expected to be profound for developers and users requiring advanced reasoning and long-context understanding. Anthropic describes the performance gap over previous models like Claude Opus 4.7 as "substantial rather than incremental," particularly in its ability to write, debug, and refactor large codebases with a sophisticated architectural understanding. [1] This architectural innovation in safety and controlled capability release sets a new industry benchmark, demonstrating that highly powerful generative AI can be distributed responsibly through intelligent design and training methodologies that actively manage and restrict sensitive functionalities at the point of interaction.

Cross-Modal AI Unifies Perception, Enhancing AI Understanding

Breakthroughs in cross-modal AI models are enabling machines to simultaneously process and understand information from text, images, audio, and video. This unification of perception leads to more intuitive and comprehensive AI responses. Meta's ImageBind is highlighted as a leading example of this technology, bridging different forms of human communication and environmental input.

On June 10, 2026, news highlighted a breakthrough in cross-modal AI models, which are fundamentally transforming how machines interpret and reason across diverse data types. These advanced AI systems can now process and understand information simultaneously from text, images, audio, and video, leading to more intuitive and comprehensive AI responses. Meta's ImageBind is cited as a leading example of this sophisticated technology, demonstrating the power of unifying different modalities of perception.[1]

The significance of cross-modal AI lies in its ability to bridge the gap between different forms of human communication and environmental input. Previously, AI models often specialized in one modality, requiring separate systems to handle text, visuals, or audio. By enabling models to "reason" across these disparate data types concurrently, the AI gains a richer, more holistic understanding of context and content. This capability allows for the development of applications that interact with users in a more natural and intelligent manner, akin to human perception.[1][2]

The implications for various industries are substantial. In areas like digital experience, generative AI's impact is already profound, with apps becoming truly multimodal and capable of handling gestures, context recognition, and even augmented reality/virtual reality experiences. For consumer applications, this means more seamless human-AI interactions, while in enterprise settings, it can lead to more sophisticated analysis of unstructured data, improved content generation across various media, and enhanced decision support systems that factor in a broader range of information. The ongoing development of multimodal capabilities is making generative AI more practical and expanding its use cases across sectors.[3][4]

AI Workflow Coordination Emerges, Reshaping Enterprise Operations

AI systems capable of coordinating entire task workflows are rapidly emerging, marking a pivot from basic chatbots to comprehensive software orchestration. This development fundamentally alters enterprise operations by streamlining processes, enhancing efficiency, and minimizing manual effort. AI is now being deployed as an orchestrator, capable of understanding complex action sequences and interacting with multiple software systems.

Another impactful development highlighted on June 10, 2026, is the rapid emergence of AI systems capable of coordinating entire task workflows. This marks a significant pivot from rudimentary chatbot interactions to comprehensive software orchestration, fundamentally altering how businesses manage and execute their operations. This shift is designed to streamline processes, enhance efficiency, and minimize manual effort across various departmental functions.[1]

The move towards AI workflow coordination signifies a maturing of generative AI applications within the enterprise. Instead of merely assisting with isolated tasks like drafting emails or summarizing documents, AI is now being deployed as an orchestrator, capable of understanding complex sequences of actions, interacting with multiple software systems, and coordinating human and machine tasks to achieve broader business objectives. This capability is expected to unlock new levels of productivity, as AI agents can move work seamlessly from one stage to the next, navigating approvals, data transfers, and inter-system communications with increased autonomy.[1][2]

This transformation involves not only advancements in AI model capabilities but also the development of robust integration platforms and frameworks. Companies like Microsoft, with their introduction of autonomous agents like "Scout" for Microsoft 365 workflows (reported in early June 2026), exemplify this trend, aiming to create always-on AI assistants that operate across a suite of applications. The impact spans across critical business areas such as customer service, finance, human resources, IT, and operations, where the ability to automate and optimize end-to-end workflows can lead to significant cost savings, faster cycle times, and improved service delivery. The growing adoption of such agentic AI in production environments is a major theme observed in 2026, signifying a move beyond experimental phases to real-world business value.[3][4][5][2][6][7]

Generative Digital Twins Evolve into Optimization Engines Across Industries

Generative digital twins are transforming industrial operations by becoming advanced optimization engines. Leveraging AI agents, these models analyze real-time data to discover superior configurations for processes and systems, promising significant efficiency gains and cost reductions. This evolution marks a pivotal moment for industrial simulation and control.

In a significant advancement reported on June 10, 2026, generative digital twins are rapidly transforming industrial operations by evolving into sophisticated optimization engines. These advanced models are moving beyond mere simulations, leveraging AI agents to continuously analyze real-time data and discover superior configurations for processes and systems. This development promises substantial enhancements in efficiency and considerable reductions in operational costs across a multitude of business sectors.[1]

The core of this transformation lies in the integration of generative AI with digital twin technology. Traditionally, digital twins have provided virtual replicas of physical assets or processes, enabling monitoring and predictive analysis. However, with the addition of generative AI, these twins gain the capacity to not only mirror but also to optimize autonomously. AI agents embedded within these digital environments can explore vast solution spaces, identify inefficiencies, and propose novel, optimized operational parameters that might be overlooked by human analysis. This shift marks a pivotal moment, pushing the capabilities of industrial simulation and control to unprecedented levels.[1]

Key players in this evolving field likely include leading industrial software providers, cloud computing giants, and specialized AI development firms. While specific companies launching new products on this exact day were not detailed in the available reports, the ongoing discussions at forums like the Bloomberg Generative AI Forum on June 9, 2026, highlight the pervasive interest among executives in the deployment of AI agents across various industries. The implications are profound, affecting manufacturing, logistics, energy, and beyond, where complex systems can benefit from continuous, AI-driven optimization, leading to better resource allocation, reduced waste, and increased throughput.[1][2]

Google DeepMind's Alpha Evolve Solves Long-Standing Mathematical Issues

Google DeepMind's Alpha Evolve, a system combining LLMs and evolutionary algorithms, has produced new mathematical structures and solved long-standing problems. This innovative application of generative AI demonstrates its capacity for novel problem-solving in abstract and complex domains, moving beyond traditional data analysis into scientific discovery.

Google DeepMind's Alpha Evolve, a novel system combining large language models (LLMs) with evolutionary algorithms, has achieved a groundbreaking feat by producing new mathematical structures and solving long-standing issues, as reported on June 10, 2026. This innovative application of generative AI demonstrates its capacity for novel problem-solving in highly abstract and complex domains.[1]

Alpha Evolve's success highlights the potential for generative AI to transcend traditional data analysis and content generation, venturing into pure scientific discovery. By integrating the linguistic and reasoning capabilities of LLMs with the exploratory power of evolutionary algorithms, the system can hypothesize, test, and refine mathematical concepts autonomously. This represents a significant advancement over previous AI approaches, which often relied on predefined rules or vast datasets for pattern recognition. Here, the AI is actively generating new knowledge and solutions where human experts have faced impasses.[1]

This development by Google DeepMind signifies a pivotal moment for AI in scientific research. While direct commercial applications may not be immediately apparent, the underlying methodology of combining generative models with evolutionary search could be adapted to solve intractable problems in various scientific and engineering disciplines. Key players like Google DeepMind are at the forefront of this fundamental research, pushing the boundaries of AI's cognitive abilities. The impact could eventually lead to accelerated discovery in fields ranging from materials science and drug design to cryptography and complex systems engineering, fundamentally changing the pace and nature of scientific progress.[1]

Polytechnique Montréal Discovery Promises Major Energy Savings for Generative AI

Researchers at Polytechnique Montréal have discovered a new organic material that can significantly enhance photonic chip performance, leading to major energy savings for data centers supporting generative AI. This breakthrough addresses the growing concern over the substantial electricity and water consumption of AI infrastructure.

On June 9, 2026, a research team from Polytechnique Montréal announced a significant scientific discovery: the identification of a new organic material that can dramatically enhance the performance of photonic chips and, consequently, reduce the substantial energy consumption of data centers powering generative AI systems. Th[1] This breakthrough comes at a critical time, as a recent UN agency warning highlighted that the electricity and water consumption of data centers is projected to double by 2030, largely due to the escalating demands of artificial intelligence.

T[1] he discovery revolves around a novel organic molecule that facilitates the interaction of light beams as they traverse the material, enabling functions such as amplification and modulation directly on the chip. Pr[1] ofessor Stéphane Kéna-Cohen, who led the research, explained that this "thin organic layer" can be seamlessly integrated onto existing silicon photonic chips without requiring extensive architectural modifications or changes to the underlying material. Esse[1] ntially, it transforms passive light systems into active ones, allowing light to be processed directly on the chip rather than constantly converting electrical signals into photonic ones and vice versa.

The[1] background to this innovation is rooted in the inherent limitations of current electronic chips. As chips become larger and more complex, communication between their different parts becomes increasingly challenging and energy-intensive. The ability to manipulate light directly on the chip, without these conversion losses, offers a pathway to bypass these bottlenecks. The [1] research team anticipates that this material could pave the way for a new generation of optical components capable of encoding information, amplifying signals, and generating custom light shapes with unprecedented efficiency.

The[1] immediate technical implications for generative AI are profound. By significantly reducing the electricity and water required for cooling and operation, this technology could unlock greater scalability and sustainability for training and running powerful AI models, which are notoriously compute-intensive. This[1] efficiency gain could lead to more tokens generated per watt of power, enabling the deployment of even more powerful AI chips. Furt[2] hermore, it could help alleviate the environmental concerns associated with the rapid expansion of AI infrastructure, offering a tangible solution to the increasing energy footprint of advanced AI development and deployment. This material discovery, therefore, represents a critical enabling technology for the future evolution of generative AI, impacting both its economic viability and environmental sustainability.

AI Investment Concerns Rise Amidst $1 Trillion Spending and Unclear ROI

Renewed fears of an AI bubble are surfacing due to massive AI sector investments, totaling over $1 trillion, with projected 2026 capital expenditures between $600-700 billion. A key concern is the unclear return on investment, as the cost of serving AI prompts may exceed subscription revenues, leading to subsidized usage.

Concerns are re-emerging regarding potential overspending in the artificial intelligence sector, with a critical eye on the enormous capital expenditures and the murkiness surrounding the actual return on investment (ROI) for AI deployments.[1] Over $1 trillion has already been poured into AI through data-center infrastructure and funding for model development labs such as OpenAI and Anthropic.[1] For 2026 alone, major hyperscale providers have collectively projected capital expenditures in the range of $600–700 billion.[1] This massive investment scale has led to renewed fears of an AI bubble, reminiscent of past tech boom cycles.

A significant point of contention revolves around the opacity of returns. The economics of running large AI models are less clear than often perceived, and the cost of serving user prompts may, in many cases, exceed what subscribers are paying, implying that usage is currently being subsidized.[1] While loss-leading strategies are not new in market capture, the unprecedented scale of investment in AI makes the path to sustainable margins undefined and a growing concern for investors.[1] Another legitimate point raised by critics is the increasing circularity of investments, where major players like Nvidia invest in "neocloud" providers, who then use that capital to purchase more Nvidia chips, creating an interdependent web of commitments.[1]

Key players implicated in this discussion include major AI model developers (OpenAI, Anthropic), GPU manufacturers (Nvidia), and hyperscale cloud providers (Microsoft, Google, Amazon), all of whom are heavily invested in the AI infrastructure buildout.[2][1] The market response, as seen on June 9, 2026, included significant market value losses for some tech giants, exacerbated by broader economic factors like a strong employment report pushing rate expectations higher.[1]

The impact of these overspending fears is a heightened scrutiny on AI investments, pushing companies and investors to demand clearer proof points and real-world benchmarks for agentic AI that deliver measurable business value.[3] There is a growing impatience for "exploratory" AI investments, with an expectation that every dollar spent should fuel outcomes that accelerate business value, whether financial, operational, or related to workforce and trust.[3] This sentiment marks a crucial shift from the initial "hype cycle" to a more disciplined, value-driven approach to AI deployment, where the focus moves from simply "can AI do this?" to "how well, at what cost, and for whom?".

Small Businesses Embrace AI for Research and Decision Support

A survey released on June 9, 2026, indicates that nearly 80% of small businesses find AI more useful than a year ago. Contrary to expectations, research and decision support are now leading AI applications for SMEs, surpassing content creation in utility. This suggests a maturation of AI adoption beyond task automation.

A recent survey published on June 9, 2026, reveals a dramatic shift in how small businesses perceive and utilize artificial intelligence, with nearly four out of five respondents indicating that AI has become more useful over the past year. Contrary to a common perception that AI's primary utility for small businesses lies in content creation, the survey found that research and decision support are now among the leading applications. [1] This finding challenges previous assumptions about the most impactful AI use cases for smaller enterprises. While generative AI's ability to create marketing content and advertising copy remains valuable, small businesses are increasingly leveraging AI tools to gather information, explore new ideas, conduct market analysis, and support strategic planning. This suggests a maturation in AI adoption, moving beyond mere task automation to more sophisticated applications that aid in critical business intelligence and foresight. The shift indicates that AI is becoming a practical, everyday tool for making informed business decisions, rather than an experimental technology. [1] The survey's insights are particularly relevant for AI developers and service providers targeting the small and medium-sized enterprise (SME) market. It highlights a demand for AI solutions that empower business owners to think and decide more efficiently. This growing embrace of AI, with 78.9% reporting increased usefulness, reflects a broader trend of AI becoming a core part of organizational life and habits, even among frontline employees. The implication is that AI's business value for smaller entities is increasingly tied to its analytical and decision-support capabilities, fostering smarter operations and strategic growth.[2][1]

Nasdaq Institute: Generative AI Fuels Entrepreneurship Boom, Primarily Solo Ventures

Nasdaq has launched its Economic Institute, with its first report highlighting how generative AI and agentic tools are significantly lowering barriers to entrepreneurship. This has led to a sharp increase in new business formations, predominantly one-person businesses, since early 2025. These solo ventures are emerging in tech, finance, and professional services sectors, benefiting from AI adoption and productivity gains.

Nasdaq has officially launched its Economic Institute, a new research platform dedicated to understanding the dynamics of capital markets and the broader financial ecosystem. Debuting with an AI research series, the Institute's inaugural report sheds light on how generative AI and agentic tools are significantly lowering barriers to entry for entrepreneurs, driving a notable increase in new business formation, particularly among solo ventures[1][2].

The core finding indicates a sharp acceleration in new business applications since early 2025, a timeline that aligns closely with the rapid advancements and widespread adoption of generative AI and agentic AI tools[1][2]. This surge in entrepreneurial activity is almost exclusively fueled by one-person businesses, such as sole proprietors, freelancers, and independent contractors, while applications from businesses intending to hire employees have remained largely flat[1][2]. These solo businesses are predominantly emerging in historically productive sectors of the economy, including technology, finance, and professional services - areas characterized by high AI adoption rates and robust productivity gains over the past two decades. [1][2] Key players in this development include Nasdaq (NDAQ), which established the Institute, and the numerous individuals and small businesses leveraging generative AI and agentic tools. The report suggests that these AI technologies empower individuals to build and scale businesses with substantially fewer resources than previously possible, signaling a new wave of more productive, technology-enabled companies entering the market.[2] The Nasdaq Economic Institute aims to provide data-grounded research and convene policymakers, regulators, and market participants to examine critical issues, with AI transformation being a central focus. [1][2] The impact of this trend is multifaceted. It points to a structural shift in economic activity, where individual innovation can translate into market presence more readily, potentially democratizing entrepreneurship. For the industry, it highlights the tangible economic benefits of generative AI beyond large corporations, fostering a vibrant ecosystem of specialized, agile businesses. This development is significant for understanding future labor market dynamics and the evolution of productivity in an AI-infused economy. While detailed market reactions are not extensively reported within this timeframe, the emphasis by Nasdaq on this trend underscores its perceived importance for capital markets and economic policy.

Legal Departments Lag in Generative AI Adoption Amidst Agentic Wave

Corporate legal departments are behind other business functions in adopting generative AI, with only 40% currently using these tools and most not measuring ROI. A significant portion (53%) are considering agentic AI, which promises autonomous multi-step task completion, indicating a coming wave of advanced automation.

Despite a widespread belief among legal professionals that generative AI will become central to their workflows within five years, corporate legal departments are exhibiting a significant lag in adoption compared to other corporate functions.[1] A recent analysis reveals a substantial disconnect between high expectations and actual implementation, with only 40% of legal organizations currently utilizing generative AI tools, and a staggering 82% either not measuring AI's return on investment or being uncertain if they do.[1] This "reality check" signals a critical juncture for an industry often characterized by its cautious approach to new technologies.

The imminent "agentic AI wave" represents the next evolution in legal technology, promising systems capable of autonomously completing multi-step tasks, moving beyond simple question-and-answer interactions to executing complex workflows with minimal human oversight.[1] Currently, a mere 15% of legal organizations employ agentic AI tools, but a substantial 53% are in the planning or consideration phases, indicating an awareness of this transformative shift.[1] The strategic imperative for corporate legal departments is to move beyond ad hoc experimentation and embrace thoughtful planning, including establishing metrics for measuring impact and success.

Key players in this evolving landscape include legal tech providers offering advanced AI assistants like CoCounsel, which is built specifically for legal professionals.[1] The implications for the legal industry are profound: while productivity is expected to soar, there are also growing risks related to over-delegation, security vulnerabilities, and alignment failures if organizations fail to establish robust guardrails.[2] Governance, therefore, is predicted to shift from focusing on mere "use" to managing "autonomous behavior".[2] This transition demands that legal departments recognize AI adoption as a strategic business decision, not merely a technological one, to thrive in the coming years. [1] The current reluctance to measure AI's ROI creates strategic blind spots, potentially hindering sound investment decisions and delaying competitive advantages. The future of AI in legal work points towards a profound transformation, where AI will increasingly function as an intelligent co-worker, automating routine tasks and freeing human professionals for higher-value, strategic work. [1]

AI and Patent Law: Experts Debate System's Readiness for Autonomous Inventions

Experts are questioning whether the U.S. patent system can adequately address inventions developed with advanced generative and agentic AI. The central debate focuses on human contribution to invention and the challenge posed by AI systems capable of independent problem-solving. This discussion has implications for national security and economic competitiveness.

The accelerating intersection of artificial intelligence, patent law, and national competitiveness is emerging as a critical discourse, with particular attention paid to the evolving capabilities of generative AI and agentic systems.[1] Discussions among intellectual property experts, including those with backgrounds at the U.S. Patent and Trademark Office (USPTO), are addressing whether the current U.S. patent system is adequately equipped to incentivize and manage AI-related innovation.

The central issue revolves around the concept of human contribution to invention when AI is used as a tool or collaborator. While the current inquiry remains focused on whether a human made a "significant contribution to conception," the rapid advancement of generative AI, especially towards more autonomous agentic capabilities, is pushing this question from speculative to urgent.[1] Agentic AI systems, with their capacity for independent action and problem-solving, could profoundly alter traditional notions of inventorship and the patentable subject matter.

This trend involves key players such as IPWatchdog, a prominent intellectual property news source, and experts like Gene Quinn and Vidya Elluru, who are analyzing these complex legal and technological frontiers.[1] The implications extend beyond legal frameworks, touching upon broader national security considerations. Policymakers are being urged to recognize intellectual property as a core pillar of economic and national security strategy, especially given that countries like China are already leveraging IP as a national power.[1] Concerns include AI-enabled fraud, potential workforce disruption due to autonomous systems, and the imperative for guardrails and meaningful penalties for malicious AI uses. [1] The discussions highlight a critical need for adaptation within the legal and policy spheres to keep pace with technological advancements. The potential for AI to drive scientific discovery, particularly in fields like drug discovery and healthcare, further underscores the urgency of clarifying patent eligibility and inventorship in the age of increasingly autonomous AI.[1] The lack of a clear framework could stifle innovation or create significant legal ambiguities, making this a pivotal, albeit niche, development with far-reaching future implications.

LF AI & Data Foundation Launches Open Standard for AI-Native Documents

The LF AI & Data Foundation is spearheading the development of DocLang, an open, AI-native document format, to address the challenges of traditional formats like PDFs for AI interpretation. This initiative, involving IBM, NVIDIA, and Red Hat, aims to preserve semantic meaning, layout, and governance controls for more reliable AI processing.

In a significant niche development for enterprise AI, the LF AI & Data Foundation, under the Linux Foundation, has announced the formation of the DocLang Specification Working Group.[1] This initiative aims to develop DocLang, an open, universal, and AI-native document format designed to revolutionize how enterprises prepare, exchange, and govern document data for AI systems.[1] The move addresses a critical bottleneck: traditional document formats like PDFs and JPEGs were created primarily for human consumption, making their interpretation by AI systems complex, costly, and often unreliable. [1] The DocLang Working Group, founded by premier LF AI & Data members IBM, NVIDIA, and Red Hat, along with contributors ABBYY and HumanSignal, will operate under a vendor-neutral, open governance model.[1] The goal is to establish a specification that supports more reliable and interoperable document processing across generative AI and agentic workflows.[1] This standard is designed to preserve both the semantic meaning and geometric layout of documents, represent structural elements (like headings and tables) and their positions, and embed governance controls for privacy, extraction scope, and model training permissions.[1] Furthermore, it will be optimized for modern AI tokenization and modeling approaches, ensuring more efficient and reliable document understanding. [1] Key players involved are the LF AI & Data Foundation, IBM, NVIDIA, Red Hat, ABBYY, and HumanSignal.[1] Experts like Mark Collier of the Linux Foundation emphasize that documents are a crucial source of enterprise knowledge, but their lack of AI-native design has created a disconnect that DocLang seeks to bridge.[1] Kari Briski of NVIDIA notes that this initiative will accelerate the adoption of an AI-native document format across industries. [1] The impact of DocLang is expected to be substantial for enterprise AI deployment. By creating a standardized, AI-native representation of document structure and content, it promises to simplify the integration of document data into AI systems, reduce the complexity and cost of data preparation, and enhance the reliability of AI-driven insights.[1] This development is crucial for the future of enterprise AI, particularly as organizations increasingly rely on generative AI and agentic systems to extract meaning from vast quantities of business documents and automate complex workflows.[1] It signifies a shift towards building more robust and transparent AI infrastructure from the ground up.

Generative AI Video Market to Reach Nearly $1 Billion by 2030

The generative AI in video creation market is projected to grow from $0.39 billion in 2025 to $0.98 billion by 2030, with a 20.4% CAGR. This growth is fueled by increasing demand for digital content and advancements in AI-powered video creation platforms.

The generative AI in video creation market is experiencing unprecedented growth, with projections indicating an expansion from $0.39 billion in 2025 to $0.98 billion by 2030, reflecting a compound annual growth rate (CAGR) of 20.4%.[1] This significant upward trajectory is primarily driven by the escalating demand for digital video content across various platforms and continuous advancements in AI models that enhance cloud-based video creation platforms. [1] Notable trends shaping this industry during the forecast period include the increasing adoption of AI-powered automated video editing and real-time video enhancement tools.[1] The integration of AI into educational and entertainment content is also playing a crucial role, alongside the robust growth of social media and digital platforms, which further propels the demand for AI-enhanced content to boost user engagement with high-quality, visually captivating media.[1] Key opportunities lie in further advancements in AI models, the proliferation of cloud-based platforms, integration with immersive technologies, and personalized video marketing strategies. [1] Leading companies are actively marking their dominance through strategic leveraging of advanced technologies. For instance, WPP Plc recently launched an AI-powered Production Studio, aiming to transform content creation through generative AI-enabled 3D workflows for more efficient and culturally relevant visuals.[1] Similarly, Canva's acquisition of Leonardo AI underscores a significant strategic move to integrate advanced AI solutions into its services, thereby bolstering its market position.[1] Other prominent players in this sector include Meta Platforms Inc., Vimeo Inc., and NVIDIA Corporation. [1] The deployment of generative AI in video creation is versatile, occurring both on-premise and via cloud-based platforms, with diverse applications spanning marketing, education, entertainment, and beyond.[1] This growth is particularly beneficial for small and medium-sized enterprises (SMEs) and individual creators, who can utilize AI to generate synthetic media, automate video editing, and enhance overall content efficiency. Despite ongoing challenges, the market is set for transformative growth, profoundly reshaping how video content is produced and consumed. [1]

Simform Recognized for Operationalizing Generative AI for Enterprises

Simform has been recognized as a "Seasoned Vendor" for its engineering-led approach to operationalizing generative AI, moving enterprises beyond pilots to production-ready solutions. The company focuses on reusable AI frameworks and AI-native engineering practices to address challenges like governance and integration.

A critical emerging trend in generative AI deployment is the shift from experimental pilots to robust, production-ready enterprise solutions, a development highlighted by AIM Research's recognition of Simform as a "Seasoned Vendor" in its "Top Generative AI Service Providers 2026" PeMa Quadrant.[1] This recognition underscores Simform's engineering-led approach, which focuses on helping enterprises operationalize generative AI through reusable AI frameworks, production-ready delivery models, and AI-native engineering practices.[1]

The core challenge for enterprises in AI adoption is that while many generative AI pilots show early promise, full-scale production often falters due to underestimations of governance complexities, integration hurdles, cost overruns, and operational brittleness.[1] Simform directly addresses these issues with a delivery approach centered on proprietary accelerators and full-lifecycle AI services designed to support enterprise adoption at a production scale. At[1] the heart of its ecosystem is ThoughtMesh, an enterprise generative AI framework that provides a unified operational layer for building, orchestrating, and deploying AI agents and intelligent workflows.[1]

Key players in this space include Simform, recognized by AIM Research, and other generative AI service providers striving to bridge the gap between AI experimentation and practical, scalable deployment.[1] Prayaag Kasundra, CEO at Simform, emphasizes that their focus is on "solving the operational realities of AI adoption, not just building impressive demos".[1] This perspective reflects a broader industry movement where organizations are now demanding more rigorous evaluation and tangible business outcomes from their AI investments.[2]

The impact and implications of this trend are significant for the future of enterprise AI. It signifies a maturation of the market, where the emphasis is moving beyond the novelty of AI capabilities to the practicalities of integration, efficiency, and measurable value.[2] This approach enables businesses to transition from merely "using generative AI regularly but selectively" to "rapidly integrating, expecting bottom-line results," as observed in recent industry surveys.[2] The goal is to embed AI into core business functions, automating workflows, improving data accuracy, and supporting decision-making in ways that are concrete and deliver critical business metrics.[2]

vime Framework Unifies Megatron and vLLM for LLM Post-Training

The vLLM team has released vime, a new reinforcement learning (RL) framework for LLM post-training. It unifies the Megatron training stack with vLLM's inference capabilities into a single pipeline designed for stable and efficient distributed training and inference. Vime aims to enhance the reliability of RL post-training for large language models.

On June 9, 2026, the vLLM team unveiled vime, a new reinforcement learning (RL) framework for large language models (LLMs) post-training that integrates the Megatron training stack with vLLM's inference capabilities into a unified pipeline. [1] This framework is designed to provide a simple, stable, and efficient architecture for distributed training and inference, addressing key challenges in the development and deployment of advanced LLMs. The announcement highlights vime's role in the vLLM ecosystem, aiming to enhance the reliability of distributed RL post-training for frontier models. [1] Vime adopts a three-stage, decoupled train-inference design, building upon the engineering paradigm of slime's training stack and data-generation methodology. [1] The core components include Megatron for the main training loop and parameter updates, vLLM (augmented with a Router) for inference sampling and generating training samples with reward signals, and a data buffer connecting these two sides to manage prompt injection and custom rollout logic. [1] A key focus of vime is achieving stable train-inference alignment, with internal evaluations demonstrating that `train_rollout_logprob_abs_diff` remains within a controllable range, even in complex Mixture-of-Experts (MoE) scenarios through features like R3 (routing replay). [1] This framework supports a wide array of RL algorithms, including GRPO and PPO, and covers various models such as Qwen3 Dense/MoE and GLM-4.5, with end-to-end examples and CI-verified paths for robust implementation. [1] The development roadmap for vime is ambitious, focusing on deeper integration with new vLLM capabilities like Router, PD disaggregation, FP8, and multi-model serving. It also aims for multi-hardware expansion to support more accelerators and cluster configurations, and further advancements in training efficiency, including fully asynchronous pipelines and Agentic RL for multi-turn tool calling and multi-agent settings. [1] The framework is also designed to swiftly incorporate new architectures such as MoE and Vision-Language Models (VLMs). [1] The implications of vime are significant for researchers and developers working on the cutting edge of LLM training methodologies. By providing a stable and efficient platform, it lowers the barrier to entry for complex RL post-training, enabling faster iteration and more reliable results for large-scale AI models. The emphasis on distributed training and inference, coupled with support for evolving architectures, positions vime as a critical tool for scaling advanced generative AI capabilities and exploring the next generation of AI agents. The framework's ability to maintain stable training alignment for MoE models, in particular, is crucial as these sparse architectures become increasingly prevalent for efficiency and performance.

Google Ads Transitions to AI-Powered Demand Generation Platform

Google Ads is transitioning its Display Ads to a new, AI-powered Demand Gen platform as of June 10, 2026. This evolution aims to deliver more targeted and efficient ad placements, boosting user engagement and advertising revenue. The platform leverages advanced algorithms to analyze user data, predict behavior, and dynamically generate relevant ads.

Google Ads is undergoing a major strategic shift, transitioning its Display Ads into a new, AI-powered Demand Gen platform, a significant development noted on June 10, 2026. This integration represents a substantial evolution in advertising strategies, designed to deliver more targeted and efficient ad placements, ultimately aiming to boost user engagement and maximize advertising revenue for businesses.[1]

This move by Google underscores the increasing reliance of the advertising industry on sophisticated AI and generative AI capabilities. By leveraging advanced algorithms, the new Demand Gen platform can analyze vast quantities of user data, predict consumer behavior, and dynamically generate and place ads that are highly relevant to individual users. This moves beyond traditional demographic targeting to more personalized, context-aware advertising, promising higher conversion rates and a more effective use of marketing budgets. The goal is to move from broad targeting to precise, AI-driven audience engagement.[1]

The key players are Google and its extensive network of advertisers and publishers. This transformation means advertisers can expect a more intelligent and automated approach to campaign management, with AI handling much of the heavy lifting in audience segmentation, creative optimization, and bid management. For users, it could translate into seeing more relevant ads, potentially improving their online experience, while for Google, it reinforces its position at the forefront of AI-driven digital advertising. The ongoing evolution of AI-powered marketing, including hyper-personalized campaigns through machine learning algorithms, is a major trend in 2026.[2]

Haut.AI and OLAY Launch Clinically Modeled Skincare Simulations with SkinGPT

Haut.AI and OLAY have partnered to introduce Virtual Companion technology within OLAY's Skin Advisor, utilizing Haut.AI's SkinGPT model. This feature provides clinically modeled skincare simulations, projecting the future results of recommended routines over time. The technology aims to enhance consumer confidence by offering personalized, data-driven visual projections.

On June 10, 2026, Haut.AI announced a strategic collaboration with OLAY, a Procter & Gamble (P&G) brand, to launch an innovative Virtual Companion technology within the existing OLAY Skin Advisor experience. [1][2] This new capability harnesses Haut.AI's proprietary generative AI model, SkinGPT, to provide clinically modeled skincare simulations that project how a recommended skincare routine is expected to perform over time. [1][2] This initiative marks a significant advancement in the application of generative AI within the beauty and skincare industry, moving beyond conventional digital filters or generic before-and-after images. SkinGPT, as Haut.AI's flagship generative AI model for skin simulations, represents pioneering work in bringing advanced AI to personalized beauty solutions. [1][2] The Virtual Companion experience is powered by a multi-step AI system designed with scientific accuracy, consistency, and transparency at its core. This system utilizes a diverse synthetic faces dataset comprising over 10,000 AI-generated profiles, meticulously guided by OLAY's research into personalized before-and-after image relevance. [1] Additionally, Haut.AI's LIQA (Live Image Quality Assessment) technology provides real-time guidance to users for optimal photo capture, enhancing the reliability of the skin analysis. [1] The background to this development lies in the industry's continuous push for more personalized and data-driven consumer experiences. Anastasia Georgievskaya, CEO and Co-founder of Haut.AI, stated that this collaboration with OLAY applies SkinGPT in a novel way, expanding how generative AI can showcase tailored skincare results without relying on generic examples. [1] The model learns underlying patterns from extensive clinical data and multimodal skin analysis, enabling it to generate highly plausible and individualized visual projections. The immediate impact and implications of this technology are far-reaching for consumers and the beauty industry. By providing a personalized projection of potential product benefits, backed by OLAY's clinical science, the Virtual Companion aims to boost shopper confidence before purchase. [1][2] This approach minimizes guesswork and allows consumers to visualize the effects of a routine on their specific skin characteristics. For the industry, it signifies a shift towards explainable machine learning and adaptive, intelligent experiences that bridge the gap between AI generation and scientific validation, setting a new standard for ethical and effective AI applications in consumer health and beauty.

EPAM and TGS Collaborate to Accelerate AI Adoption in Energy Sector

EPAM Systems and TGS are collaborating to accelerate AI adoption in the energy sector, focusing on optimizing seismic imaging workflows. By migrating TGS's imaging systems to AWS Cloud, they aim to provide faster, more cost-effective solutions for energy companies to process and analyze vast subsurface datasets.

EPAM Systems, Inc., a digital and AI transformation company, and TGS, a leading provider of energy data and intelligence, have announced a strategic collaboration to accelerate the adoption and optimization of AI in the energy sector. This partnership, which saw the successful deployment of TGS Imaging AnyWare® on Amazon Web Services (AWS), is focused on AI-enabling and optimizing critical workflows, particularly seismic imaging, to deliver faster and more cost-effective solutions for energy companies. [1] The energy sector faces immense challenges in processing and extracting value from vast, petabyte-scale subsurface datasets. The traditional methods for seismic imaging and interpretation are computationally intensive and time-consuming. This collaboration addresses these hurdles by migrating TGS's imaging systems to AWS Cloud, leveraging elastic cloud infrastructure for agility and performance. The goal is to make capabilities economically and technically feasible that were previously out of reach, allowing energy companies to unlock greater value from their data. [1] Key players in this initiative are EPAM and TGS, with AWS providing the cloud infrastructure. EPAM's expertise in custom software and AI transformation, combined with TGS's deep energy data knowledge, is driving the modernization of subsurface operations. The collaboration delivers core capabilities such as "Subsurface Data as a Service" through TGS Data Verse, which offers centralized, secure, and OSDU-compliant access to seismic and well data. This enables in-browser visualization and on-demand delivery, accelerating exploration and production decision-making for their clients in the energy industry. The emphasis on AI-enabled workflows and agentic AI for business value is a key trend in 2026, as companies move from pilots to large-scale deployments. [2][1]

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