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Welcome to The Prompt by Kuro House, your daily AI update. Today, we’re diving into some big moves and breakthroughs in the AI world. From corporate policy shifts to cutting-edge medical AI and chip industry insights, we’ve got you covered.

First up, Microsoft is quietly walking back its diversity efforts, and it’s raising eyebrows. According to The Verge, Microsoft is stopping its annual diversity and inclusion report and removing diversity as a core priority from employee performance reviews. This means employees no longer have to report on their contributions to diversity, a sharp change from previous years. Instead, Microsoft is focusing on inclusion embedded in everyday work, but critics inside the company call this a shallow commitment. Meanwhile, Microsoft is experimenting with a next-gen AI assistant for executives called Cosio, but wider rollout seems unlikely now. This shift signals a big change in how Microsoft balances culture and AI innovation.

Google’s new AI model, Nano Banana Pro, is getting really good at spoofing phone photos. As reported by The Verge, the images it generates look so realistic they’re almost indistinguishable from actual phone camera photos. The secret? It mimics the noise, sharpening, and depth of field typical of smartphone photography, making AI-generated images far less “perfect” and more believable. Interestingly, Nano Banana Pro isn’t trained on Google Photos, but it can connect to Google Search for real-world context, improving its accuracy. This means AI can now add realistic details like watermarks and period-appropriate elements without explicit prompts, blurring the lines between real and fake images. The takeaway? It’s time to sharpen your AI radar because these visuals are getting bananas good.

Over in Europe, the EU is investigating Meta over a policy change that bans rival AI chatbots from WhatsApp. TechCrunch reports the European Commission launched an antitrust probe after Meta restricted other AI providers from using WhatsApp’s business API to offer chatbots. This move effectively blocks competitors like OpenAI from reaching WhatsApp users, while Meta’s own AI chatbot remains accessible. The EU fears this could harm competition in the booming AI market and may impose fines up to 10% of Meta’s global revenue if violations are found. Meta calls these claims baseless, saying users have many ways to access rival AI services outside WhatsApp. This case will be one to watch for AI platform fairness and market control.

In medical AI, Eric Topol, author of Super Agers, is optimistic about AI’s role in revolutionizing how we age and diagnose diseases. WIRED’s Big Interview highlighted Topol’s belief that AI can analyze retinal images to detect risks for Alzheimer’s, Parkinson’s, and arterial problems years in advance. He sees AI as a powerful tool to extend health spans, not just lifespans, by identifying early biomarkers and tracking organ aging. Topol also advocates lifestyle changes combined with AI insights and new drugs like GLP-1s to reduce inflammation and improve overall health. His message is clear: AI-driven medicine could help us live healthier, longer lives with fewer chronic conditions.

Finally, AMD CEO Lisa Su says concerns about an AI bubble are overblown. At WIRED’s Big Interview, she emphatically stated that the AI industry is not a bubble and that demand for AI chips will keep growing. AMD is betting big on AI data centers, with a major deal to supply OpenAI with six gigawatts of Instinct GPUs over several years. Su acknowledges challenges like export taxes on chips to China but remains focused on innovation speed rather than competition. Her view is that AI is still in its infancy, and the next generation of models will be even better, driving the need for more powerful hardware.

That’s a wrap on today’s top AI stories. From corporate shifts and regulatory battles to breakthroughs in AI realism, healthcare, and hardware, the AI landscape keeps evolving fast. Stay curious, stay informed, and we’ll catch you again tomorrow with more insights on The Prompt.