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Vibe-coding startup Windsurf launches in-house AI models

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On Thursday, Windsurf, a startup that develops common AI instruments for software program engineers, announced the launch of its first household of AI software program engineering fashions, or SWE-1 for brief. The startup says it skilled its new household of AI fashions — SWE-1, SWE-1-lite, and SWE-1-mini — to be optimized for the “complete software program engineering course of,” not simply coding.

The launch of Windsurf’s in-house AI fashions might come as a shock to some, provided that OpenAI has reportedly closed a $3 billion deal to acquire Windsurf. Nevertheless, this mannequin launch suggests Windsurf is making an attempt to develop past simply creating functions to additionally creating the fashions that energy them.

According to Windsurf, SWE-1, the most important and most succesful AI mannequin of the bunch, performs competitively with Claude 3.5 Sonnet, GPT-4.1, and Gemini 2.5 Professional on inside programming benchmarks. Nevertheless, SWE-1 seems to fall in need of frontier AI fashions, comparable to Claude 3.7 Sonnet, on software program engineering duties.

Windsurf says its SWE-1-lite and SWE-1-mini fashions shall be obtainable for all customers on its platform, free or paid. In the meantime, SWE-1 will solely be obtainable to paid customers. Windsurf didn’t instantly announce pricing for its SWE-1 fashions however claims it’s cheaper to serve than Claude 3.5 Sonnet.

Windsurf is greatest identified for instruments that enable software program engineers to jot down and edit code by means of conversations with an AI chatbot, a apply often called “vibe coding.” Different common vibe-coding startups embody Cursor, the most important within the house, in addition to Lovable. Most of those startups, together with Windsurf, have historically relied on AI fashions from OpenAI, Anthropic, and Google to energy their functions.

In a video saying the SWE fashions, feedback made by Windsurf’s Head of Analysis, Nicholas Moy, underscore Windsurf’s latest efforts to distinguish its strategy. “Right now’s frontier fashions are optimized for coding, they usually’ve made huge strides during the last couple of years,” says Moy. “However they’re not sufficient for us … Coding shouldn’t be software program engineering.”

Windsurf notes in a weblog submit that whereas different fashions are good at writing code, they wrestle to work between a number of surfaces — as programmers typically do — comparable to terminals, IDEs, and the web. The startup says SWE-1 was skilled utilizing a brand new knowledge mannequin and a “coaching recipe that encapsulates incomplete states, long-running duties, and a number of surfaces.”

The startup describes SWE-1 as its “preliminary proof of idea,” suggesting it might launch extra AI fashions sooner or later.

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Crypto News

What Happens to BTC After Trump? Hedge Funds Worry: Eric Semler

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Eric Semler, chairman of healthcare tech agency Semler Scientific Inc., says lots of his hedge fund friends are skeptical about Bitcoin’s future as soon as US President Donald Trump leaves workplace.

“I believe that they assume it’s a fly-by-night idea and that it’s most likely going to, after the Trump administration, return down rather a lot,” Semler told Coin Tales host Natalie Brunell on Thursday.

Semler is assured that Bitcoin is a significant play

Semler, who additionally based hedge fund TCS Capital Administration in 2001, made his feedback amid skepticism within the crypto industry about how lengthy political assist for crypto will final after US President Donald Trump’s administration ends. Whereas Trump recently signed off on a Bitcoin (BTC) Strategic Reserve, some, like JAN3 founder Samson Mow, are involved that assist could probably unravel beneath a future president.

Nevertheless, it isn’t a priority for Semler, who has doubled down on the asset. In Could 2024, Semler Scientific grew to become the second US publicly traded firm to undertake a Bitcoin treasury technique.

On Thursday, Semler Scientific introduced plans to extend its Bitcoin holdings by nearly 23 times within the subsequent two-and-a-half years, rising its holdings from 4,449 Bitcoin to 105,000 Bitcoin. Semler is aiming to carry a complete of 10,000 Bitcoin by the tip of this yr.

Semler sees doubt from the standard finance trade as a bullish sign. 

“If you’re having a bet on one thing that almost all doesn’t consider in, and also you’re proper, you make a lot extra money,” Semler mentioned.

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Eric Semler spoke to Natalie Brunell on Thursday. Supply: Natalie Brunell

“I believe we acquired nice alternatives to indicate those that principally they’re lacking out on an awesome alternative,” he added.

Semler mentioned he has constructed a profession on going in opposition to the grain. “The most effective investments I’ve ever made have been in issues that I’m form of the lone voice crying within the wilderness,” he mentioned.

“These are the forms of investments which have the best returns,” he mentioned. 

“I like the negativity; I’m a contrarian investor.”

Surveys present hedge funds are turning to Bitcoin

In October 2024, the Different Funding Administration Association and PwC conducted a survey revealing that 47% of hedge fund managers buying and selling in conventional markets are uncovered to cryptocurrencies.

Associated: Bitcoin threatens $104K ‘rug pull’ as trader says major move yet to come

Crypto publicity was 29% in 2023, whereas about 37% of the respondents mentioned that they had publicity to crypto in 2022.

Curiously, again in June 2021, an Intertrust World surveyed chief monetary officers from 100 hedge funds worldwide about their intention to buy crypto belongings. 

About 98% of them responded that they count on their hedge funds to have invested 7.2% of their belongings in cryptocurrencies by 2026.

Journal: Arthur Hayes doesn’t care when his Bitcoin predictions are totally wrong