Vibe-Coding Startup Windsurf Introduces New In-House AI Models 👨‍💻

Welcome to another edition of Horizon AI,

Vibe coding is becoming increasingly popular, and AI coding platform Windsurf is tapping into the trend with a major move: releasing new in-house AI models.

Let’s get right to it!

Read Time: 4.5 min

Here's what's new today in the Horizon AI

• Windsurf Launches SWE-1, Homegrown AI Models for Software Engineering

• Anthropic's Lawyer Forced To Apologize After Claude Hallucinated Legal Citation

• AI Tutorial: How to generate AI images in Microsoft Paint on Windows 11

• AI Tools to check out

• The Latest in AI and Tech 💡

• AI Findings/Resources

AI News

WINDSURF

Windsurf Launches SWE-1, Homegrown AI Models for Software Engineering

Windsurf has launched its first family of proprietary AI models, called SWE-1. This suite includes SWE-1, SWE-1-lite, and SWE-1-mini, designed to support the entire software engineering process, not just coding.

Details:

• According to Windsurf, the SWE-1 model performs competitively with other advanced AI models like Claude 3.5 Sonnet, GPT-4.1, and Gemini 2.5 Pro on internal programming benchmarks. However, it appears to fall short of the latest frontier models like Claude 3.7 Sonnet in software engineering tasks.

• The company plans to make SWE-1-lite and SWE-1-mini available to all users on its platform, both free and paid, while SWE-1 will be accessible to paid users.

• Pricing details for SWE-1 have not been announced, but Windsurf claims it is more cost-effective to serve than some competing models.

• The launch comes amid reports that OpenAI has agreed to acquire Windsurf for approximately $3 billion.

The introduction of these in-house models marks a major pivot for Windsurf as it develops its own foundational AI technologies instead of relying solely on external providers like OpenAI, Anthropic, or Google.

Source

ANTHROPIC

Anthropic's Lawyer Forced To Apologize After Claude Hallucinated Legal Citation

Anthropic’s lawyer admitted to using an erroneous citation generated by the company’s Claude AI chatbot in an ongoing lawsuit brought by several music publishers, including Universal Music Group, over alleged copyright violations.

Details:

• The citation, included in an expert report, contained fabricated details such as incorrect authorship and article title, despite linking to a valid academic source.

• After lawyers for the music publishers brought the citation errors to light, Judge Susan van Keulen asked Anthropic to respond.

• Anthropic's attorney, Ivana Dukanovic, described the incident as “an honest citation mistake and not a fabrication of authority,” attributing it to the AI's formatting process and a missed manual review, but she was nonetheless required to formally apologize for the errors.

Hallucinations remain a major challenge for using AI in high-stakes areas, yet these errors haven’t stopped startups from securing huge funding. For example, Harvey, which uses generative AI to assist lawyers, is reportedly in talks to raise over $250 million at a $5 billion valuation.

Source

AI Tutorial

How to generate AI images in Microsoft Paint on Windows 11

Note: You must be signed into a Microsoft Account with an active M365 subscription to use Copilot's image-creation features.

1. Update Windows 11

Paint in Windows 10 doesn’t have the new features. To make sure you're running the latest build, go to Settings > Windows Update and click Check for updates. You can also turn on “Get the latest updates as soon as they’re available.”

2. Update Microsoft Paint

Open the Microsoft Store, click the Downloads icon (a cloud with a down arrow), then hit Check for updates. This updates all Microsoft Store apps, including Paint.

3. Launch Paint, click the Copilot icon on the taskbar, and select Image Creator.

4. A text box will appear where you can describe the image you want and choose a style.

5. Click Create or press Enter. Wait about 20 seconds. Paint will generate three images.

6. Click any image to view it larger in the center of the canvas. If you’re unsure which one to use, click the ellipsis icon on any image and select Save Image.

7. If you're not happy with the results, adjust your prompt or style and try again. You can also use Paint’s editing tools to make changes.

AI Tools to check out

🐶 DocsHound: Turn product demos into docs, chatbots, & product education

⚡ Scottie: Build any AI agent in 5 minutes.

🗣 Audeus: Read aloud Google Docs, email, or any text using AI.

✅ Backflip AI: AI-powered design platform that translates user inputs into high resolution, 3D-printable models.

🦾 Impakt: AI Coach. Track workouts, get real-time feedback, analyze performance, and share progress.

AI Findings/Resources

🔮 The real danger isn't killer robots. It's that AI gives us everything we want.

📝 Quick guide on how you can design and build apps in the age of AI.

👀 I compared ChatGPT 4.1 to o3 and 4o to find the most logical AI model

🤔 Elon Musk’s xAI explains Grok’s recent outburst about South African race relations.

✍ How to write a cover letter using AI

The latest in AI and Tech

Kaggle teams up with OpenAI to launch the "OpenAI to Z Challenge"

It’s a hackathon that challenges participants to use satellite imagery, archaeological data, and OpenAI’s o3, o4 mini, and GPT-4.1 models to help uncover lost archaeological sites in the Amazon, with a $400,000 prize pool.

AI helps Google grow its subscription service to 150 million users

Google One, Alphabet's subscription service for cloud storage and AI features, recently surpassed 150 million subscribers, marking a significant 50% increase since February 2024.

Meta delays release of its 'Behemoth' AI model

Meta engineers are reportedly struggling to significantly improve its capabilities, leading some staff to question whether the improvements over earlier models are substantial enough to justify a public release.

Infant with rare condition becomes first to successfully receive personalized gene therapy

KJ Muldoon was born with carbamoyl phosphate synthetase 1 deficiency, a rare inherited disorder that causes toxic levels of ammonia to build up after consuming protein, which can lead to brain damage or even death.

Within six months, researchers developed a gene-editing therapy using a technique called base editing, specifically targeted to KJ’s genes — literally rewriting his genetic code to correct the defect.

The results were positive, though they caution that it has only been a few months. KJ will need to be monitored for years.

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Gina 👩🏻‍💻