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Microsoft’s most capable Phi-4 AI model now rivals models 10x its size

ALSO: Best Business Idea To Start Using Agentic AI

In today’s Newsletter

  1. Phi-4 AI model now rivals models 10x its size

  2. Best Business Idea To Start Using Agentic AI

  3. AI & Tech News

  4. Quotes of the day

Microsoft’s most capable Phi-4 AI model now rivals models 10x its size (Source)

Microsoft just launched Phi-4-reasoning, Phi-4-reasoning-plus, and Phi-4-mini-reasoning—small language models (SLMs) that deliver big-league performance.

Microsoft Azure

  • Phi-4-reasoning (14B) outperforms models like OpenAI o1-mini & DeepSeek-R1 Distill-70B

  • Phi-4-reasoning-plus uses more tokens & RL to boost accuracy further

  • Phi-4-mini-reasoning (3.8B) beats larger models on math reasoning—perfect for edge & mobile

These models bring high-level reasoning, coding, and science capabilities to low-latency environments—running locally on Copilot+ PCs, edge devices, and even offline.

Built with Microsoft’s responsible AI framework (SFT, DPO, RLHF)

Available now on Azure AI Foundry and Hugging Face

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Best Business Idea To Start Using Agentic AI

1. Find Businesses That Need Help

Target businesses that receive a lot of calls, like solar companies, pest control services, or home improvement businesses, especially those already paying for ads (e.g., Google Ads).

Tools:

  • Google Search: Look for businesses in specific industries paying for ads.

  • Facebook Ads Library: Search for businesses running ads on Facebook and Instagram.

2. Use Google Search to Find These Businesses

Search Google for businesses in industries like solar or pest control. Look for ads in the "Sponsored" section at the top of search results—these businesses are paying for leads.

Example: Searching “solar company near me” will show ads from businesses paying for leads. Target these businesses.

Tools: Google Search: Check the "Sponsored" results for businesses running ads.

3. Reach Out to the Business Owner

Once you find a business, reach out through email, social media, or a phone call. Let them know you can solve a problem they might be facing with missed calls.

Tools: LinkedIn or Facebook: Direct message business owners.

4. Show Them What They’re Losing

Explain that missed calls are missed opportunities, especially when they’re paying for ads. Use an ROI calculator to show how much they might be losing.

Example: “You could be losing $500/month from missed calls.”

Tools: A custom ROI Calculator to estimate losses from missed calls.

5. Offer Your Solution

Present your automated missed call text-back service. It automatically texts customers who miss their call, asking if they need help, keeping the lead engaged.

Tools: Use make.com to set automation automate text messages and track interactions.

6. Close the Deal

Offer the service for a small monthly fee (e.g., $125-$225). Use the ROI data to show how much money they could save by preventing missed opportunities.

Example: “For just $150/month, you can capture missed leads and increase sales.”

7. Set Up the Service

Set up the service quickly (usually in 5 minutes). Connect their business number to a platform to enable the missed call text-back feature.

Tools You’ll Need:

Purpose

Tool

Call tracking & status

Twilio / RingCentral / Plivo

SMS sending

Twilio / MessageBird / Nexmo

Workflow automation

Make.com

Call logs (optional)

Google Sheets

8. Build Trust and Offer More

After proving the value with the small service, offer higher-value services like SEO, Google Ads management, or website building. You can outsource the work and manage the client relationship.

Tools: Fiverr or Upwork: Hire freelancers for bigger services (e.g., SEO, web design).

AI & Tech News

1. Gemini’s Next Upgrade Makes ChatGPT’s Memory Look Outdated (Source)

Google is rolling out major upgrades to Gemini that rival ChatGPT’s latest memory features. Soon, Gemini will remember past conversations and, more significantly, pull insights from Gmail, Calendar, YouTube, and other Google apps using a feature called “pcontext.”

This integration aims to make Gemini far more personalized and proactive—anticipating your needs and acting like a true digital assistant. Privacy controls will be in place, and more details are expected at Google I/O on May 20.

2. Zuckerberg Just Declared War on the Entire Ad Industry with ‘Infinite Creative’ AI (Source)

Mark Zuckerberg just revealed Meta’s bold vision to eliminate traditional advertising as we know it. In a candid interview, he said businesses will soon need no ad creatives, no targeting strategy, and no measurement tools Meta's AI will handle everything: generating ad content, targeting, iterating, and reporting results.

This concept, dubbed "infinite creative," threatens to disrupt agencies, brands, and decades of advertising infrastructure. While small businesses may benefit, industry leaders are alarmed—saying Meta is effectively asking advertisers to “trust the results we spit out

3. Google Now Puts Ads Inside AI Chatbot Conversations (Source)

Google has started placing ads inside chatbot conversations through its AdSense for Search network, partnering with AI startups like iAsk and Liner. This strategic shift helps Google maintain dominance in digital ads as generative AI disrupts traditional search.

The company aims to monetize AI interactions, even if it loses search traffic to AI-powered platforms like Perplexity. While startups benefit from new revenue streams, Google’s expanding influence—especially amid antitrust scrutiny—raises big questions about the future of ad-funded AI chat.

4. Google Upgrades Gemini Chatbot With Powerful Image Editing (Source)

Gemini chatbot now allows users to edit AI-generated and personal images natively within the app. Rolled out with support for 45+ languages, the update brings multi-step editing—letting users change backgrounds, swap objects, and enhance photos contextually. 

While powerful (and similar to ChatGPT’s recent update), the feature sparked concerns over deepfakes. In response, Google adds invisible watermarks and is testing visible ones to ensure transparency.

5. Meta Unveils Llama 4-Powered AI App to Rival ChatGPT (Source)

Meta has launched a standalone AI app powered by its new Llama 4 model, offering real-time, voice-first interaction and tight integration with Facebook, Instagram, and WhatsApp. It features full-duplex speech, personal responses using user preferences, and even smart glasses support.

A Discover feed allows sharing and remixing AI content, while upgraded web tools include image generation and document editing. With privacy controls and visible mic indicators, Meta aims to blend utility with user control—marking a bold step in AI-powered social experiences.

6. Startups Are Building Advanced AI Models Without Data Centers (Source)

Startups Flower AI and Vana have developed a new AI model called Collective-1 using a completely different method—training it on GPUs distributed across the internet instead of relying on massive data centers.

Flower AI created the technology to enable this decentralized training, while Vana provided private user data from platforms like X, Reddit, and Telegram, with user permission. The model, currently at 7 billion parameters, is small compared to leading models like ChatGPT, but the team is already working on models with 30 billion and 100 billion parameters. To make this possible, they built an open-source tool called Photon, which improves the efficiency of distributed training.

This approach could significantly lower the cost of building powerful AI, making it accessible to smaller companies, universities, and countries without expensive infrastructure. It also opens the door to training models using private or sensitive data that wouldn't normally be centralized—like in healthcare or finance—while giving users more control and even ownership over how their data is used. Experts believe this shift in how AI is trained could disrupt the current power held by big tech companies in the AI space.

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Quote of the day

With the new day comes new strength and new thoughts."

- Eleanor Roosevelt

Thanks for your time!

Shailesh