AI·Eye on AIThis 26-year-old’s TikTok- AI app makes playful, creative short s from just a few words—it’s built for Gen ZBy Sharon GoldmanBy Sharon GoldmanAI ReporterSharon GoldmanAI ReporterSharon Goldman is an AI reporter at Fortune and co- Eye on AI, Fortune’s flagship AI .
She has written digital and enterprise for over a decade.SEE FULL BIO Pika co-founder and CEO Demi GuoLauren SegalWelcome to Eye on AI, with AI reporter Sharon Goldman.
In this edition…a TikTok- AI app that is built for Gen Z…Challenges renting San Francisco apartments during the AI boom…TSMC fit surges 39% to hit yet another record on AI chip demand…Spotify partners with Sony, Universal, Warner and more to develop AI music ducts.
Demi Guo, the 26-year-old founder of AI company Pika, holds degrees in mathematics and computer science.
But she’s also always had a creative streak, including writing poetry, and she loves showing off on social media with image and tools.
That’s why she dropped out of her Stanford Ph.D gram and co-founded Pika in April 2023 with aspiring animator and fellow Ph.D student Chenlin Meng.
Just as AI companies Runway were starting to get hot, the duo, after experimenting with making long-form generative AI films, decided to create an easier-to-use AI generator—sparking interest from top Silicon Valley investors Nat Friedman.
Now, has Pika has raised $135 million at a $470 million valuation and boasts 14.5 million users across several creative apps.
It recently launched a new TikTok- AI app, also called Pika, that is already , and last week it debuted a new feature in that app called Predictive .
Un other tools which require long mpts to generate good results, Predictive allows users to upload a selfie and say something simple, “make me a rock star,” or “I’m giving a TED Talk,” or “make me sing in Japanese”; the tool then infers your intent, dering a complete with a script, music and dance moves, background, lighting, and camera angles and visual effects.
Instead of just ducing a standalone clip, Pika can anticipate motion and interaction, ducing a of mixed reality by allowing users to weave themselves or real-world elements into AI-generated scenes—something that traditionally would take significant animation skills and duction time.
All of it is tailor-made for Gen Z and Gen Alpha, cohorts which have grown up on short-form and uses online platforms to express themselves and their thoughts, Guo explained.
“Most nonfessionals will never try to create a film using generative AI, but lots of people to make short s,” she said.
“It’s really self-expression.” That, she insists, is the opposite of what has become a catch-all tool for AI : Slop.
There may be artificial content at scale, but Pika is meant to, ironically, use generative AI to help people get more real, she says. “We really believe it is not meaningless content,” she emphasized.
“It’s self-expression, the personality is actually real behind it.
So a person who is funny will post funny s, or a person that is very egocentric will post egocentric s.” Some people to use one visual effect, or create a that captures a vibe or a mood, or simply use the tool to do what they wish they could do in real life, she added.
“It helps you achieve that in some sense,” she said.
“Maybe you are a really bad singer, but in AI, you can sing very well, a pop star.” Pika is stepping into a competitive landscape dominated by giants OpenAI’s Sora and Meta’s new Vibes, but it’s carving out a very different niche.
Sora is focused on cinematic, photorealistic text-to- generation, and Vibes is bringing AI-generated s into Meta’s massive ecosystem.
But Pika positions itself closer to the ground-level habits of Gen Z and Gen Alpha: It’s less polished ductions at scale, and more emotion, creativity and interaction for everyday storytelling.
With that, here’s more AI news.
Sharon Goldmansharon.goldman@fortune.com@sharongoldmanFORTUNE ON AIDon’t fear the AI bubble, it’s to unlock an $8 trillion opportunity according to Goldman Sachs – by Jim EdwardsBlackRock’s $40 billion deal highlights the unstoppable AI data center gold rush, as CEO Larry Fink pushes back on AI bubble fears – by Sharon GoldmanWant to build your own chatbot for $100?
A glimpse into AI’s small, cheap, DIY future – by Sharon GoldmanAmazon is planning a new wave of layoffs, sources say – by Jason Del ReyAI IN THE NEWSChallenges renting San Francisco apartments during the AI boom.
According to the New York Times, a surge of AI start-ups is reshaping San Francisco’s housing market, driving up demand and prices and intensifying competition for apartments.
After his company Cluely raised $5.3 million, 22-year-old founder Roy Lee leased eight luxury apartments just steps from the office to foster a “frat house” work culture—emblematic of how firms are reshaping city living.
Fueled by growth from companies OpenAI and Anthropic, San Francisco rents have risen 6% in the past year, more than double New York City’s rate, with neighborhoods near A.I.
hubs Mission Bay seeing 13% spikes.
The scramble for housing has led renters to tour dozens of units, face same-day rejections, and even bring cash to viewings, raising new concerns affordability and displacement in one of America’s most expensive cities.
TSMC fit surges 39% to beat estimates and hit yet another record on AI chip demand. CNBC reported that Taiwan Semiconductor Manufacturing Co.
(TSMC) posted record third-quarter results as surging demand for artificial intelligence chips fueled a 39.1% jump in fit from a year earlier, beating analyst estimates.
Revenue climbed 30.3% to NT$989.92 billion ($33.1 billion), while net income rose to NT$452.3 billion. CEO C.C.
Wei said growing consumer adoption of AI models is strengthening the company’s conviction in the “AI megatrend,” mpting TSMC to raise its 2025 revenue growth forecast to the mid-30% range and boost planned capacity investments to at least $40 billion.
High-performance computing, including AI and 5G chips, accounted for 57% of revenue, and advanced 7-nanometer-and-smaller chips made up 74% of wafer sales, underscoring TSMC’s central role in supplying cutting-edge cessors to clients Nvidia and Apple.
Spotify partners with Sony, Universal, Warner and more to develop AI music ducts.
Variety reported that Spotify is teaming up with major music industry players—including Sony, Universal, Warner, Merlin, and Believe—to develop “responsible” AI ducts aimed at empowering artists and songwriters, marking one of the first large-scale collaborations between ing and music rights holders on AI.
As part of a broader push to invest heavily in AI re and duct development, Spotify plans to build a generative AI lab and duct team focused on four key goals: creating tools through up-front agreements with labels and publishers; allowing artists and rights holders to opt in to generative music nologies; opening new revenue s; and strengthening artist-fan connections.
The initiative reflects a growing effort across the music industry to shape how AI is integrated into creative and commercial practices. AI CALENDAROct. 21-22: TedAI San Francisco. Nov.
10-13: Web Summit, Lisbon. Nov. 26-27: World AI Congress, London. Dec. 2-7: NeurIPS, San Diego Dec. 8-9: Fortune Brainstorm AI San Francisco. Apply to attend here.
EYE ON AI NUMBERS26%That's how many Americans are familiar with AI mental health tools, according to a new YouGov survey that highlights just how far such tools have to go to win over the public.
A mere 11% say they’d consider using one, and trust is even lower—just 8% say they trust AI in this space, while 40% explicitly don’t.
The top reasons for skepticism: concerns lack of human nuance (53%), harmful or inaccurate advice (50%), and data privacy (49%).
And despite the flood of startups and investment in AI therapy apps, only 4% of Americans have ever tried one. Fortune Global Forum returns Oct. 26–27, 2025 in Riyadh.
CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of .
Apply for an invitation.TSMC fit surges 39% to beat estimates and hit yet another record on AI chip demand. CNBC reported that Taiwan Semiconductor Manufacturing Co.
(TSMC) posted record third-quarter results as surging demand for artificial intelligence chips fueled a 39.1% jump in fit from a year earlier, beating analyst estimates.
Revenue climbed 30.3% to NT$989.92 billion ($33.1 billion), while net income rose to NT$452.3 billion. CEO C.C.
Wei said growing consumer adoption of AI models is strengthening the company’s conviction in the “AI megatrend,” mpting TSMC to raise its 2025 revenue growth forecast to the mid-30% range and boost planned capacity investments to at least $40 billion.
High-performance computing, including AI and 5G chips, accounted for 57% of revenue, and advanced 7-nanometer-and-smaller chips made up 74% of wafer sales, underscoring TSMC’s central role in supplying cutting-edge cessors to clients Nvidia and Apple.
Spotify partners with Sony, Universal, Warner and more to develop AI music ducts.
Variety reported that Spotify is teaming up with major music industry players—including Sony, Universal, Warner, Merlin, and Believe—to develop “responsible” AI ducts aimed at empowering artists and songwriters, marking one of the first large-scale collaborations between ing and music rights holders on AI.
As part of a broader push to invest heavily in AI re and duct development, Spotify plans to build a generative AI lab and duct team focused on four key goals: creating tools through up-front agreements with labels and publishers; allowing artists and rights holders to opt in to generative music nologies; opening new revenue s; and strengthening artist-fan connections.
The initiative reflects a growing effort across the music industry to shape how AI is integrated into creative and commercial practices.
26%That's how many Americans are familiar with AI mental health tools, according to a new YouGov survey that highlights just how far such tools have to go to win over the public.
A mere 11% say they’d consider using one, and trust is even lower—just 8% say they trust AI in this space, while 40% explicitly don’t.
The top reasons for skepticism: concerns lack of human nuance (53%), harmful or inaccurate advice (50%), and data privacy (49%).
And despite the flood of startups and investment in AI therapy apps, only 4% of Americans have ever tried one.