Welcome back to Daily Zaps, your regularly-scheduled dose of AI news ⚡️ 

Here’s what we got for ya today:

• 📲 Apple launches budget-friendly AI capable iPhone

• ✈ FAA approves electric air-taxi pilot training program

• 📖 OpenAI going back to open source?

• 👾 Anyone can code?

Let’s get right into it!

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BIG TECH

Apple launches budget-friendly AI capable iPhone

Apple has introduced the iPhone 16e, a new $599 budget-friendly model that is now the most affordable iPhone supporting Apple Intelligence, bringing AI-powered features like image generation and notification summaries to a wider audience. Unlike previous low-cost models, the iPhone 16e uses Face ID instead of a fingerprint scanner and features a modern design with a notch display. It runs on the A18 chip, the same processor as the flagship iPhone 16 models, ensuring compatibility with the latest apps and AI features.

Apple also unveiled its first in-house cellular modem, C1, replacing Qualcomm’s technology. The company is launching this model amid declining iPhone sales and a shift in marketing strategy, as it opted for a press release instead of a live event, testing a quieter approach to product launches.

STARTUPS

FAA approves electric air-taxi pilot training program

Archer Aviation has received FAA certification to begin Part 141 flight training operations, paving the way for its pilot training academy and future commercial air taxi services. This milestone follows the FAA’s final rule on powered-lift aircraft operations, enabling Archer to train and qualify pilots for its Midnight aircraft, a zero-emission air taxi designed to carry four passengers on short urban routes at speeds of up to 150 mph.

Archer Aviation has secured $300 million in funding, raising its total liquidity to approximately $1 billion to support the type certification of its Midnight eVTOL aircraft. The funding was obtained through the sale of 35.5 million Class A shares at $8.50 each, backed by institutional investors including BlackRock. CEO Adam Goldstein cited growing military demand for eVTOL technology as a key driver for raising additional capital, particularly for the company’s newly launched defense division, which is developing a hybrid-electric VTOL with greater range and payload than the Midnight air taxi.

STARTUPS

OpenAI going back to open source?

OpenAI CEO Sam Altman is reconsidering the company’s stance on open source development, seeking user feedback on X regarding whether to release an o3-mini level model or a smartphone-optimized model. This shift comes after OpenAI distanced itself from open source following Microsoft’s investment and the release of GPT-4, citing security concerns. However, as competitors like Meta, Deepseek, Alibaba, and Mistral gain ground with open source models, Altman now acknowledges that a fully closed approach is unsustainable.

While this move does not signify a return to OpenAI’s original mission, it reflects a strategic adaptation to the evolving AI landscape. Meanwhile, former OpenAI executive Jan Leike has criticized the company’s shift away from its original goal of ensuring AGI benefits humanity, arguing that it now focuses on less ambitious charitable initiatives. A potential open source release could serve as a middle ground, balancing competition, security, and transparency.

STARTUPS

Anyone can code?

Replit’s partnership with Anthropic and Google Cloud is turning Anyone Can Code into reality, much like Ratatouille’s famed motto: Anyone Can Cook. At Zillow, non-technical employees are now building software for the company’s customer routing system, a task once reserved for developers. By integrating Anthropic’s Claude AI with Google Cloud’s Vertex AI, Replit allows anyone with an idea—not just engineers—to create functional applications. This shift addresses the growing developer shortage and empowers teams in marketing, sales, and operations to craft custom solutions without waiting for scarce tech resources.

Whether it’s a business automating workflows or an independent creator launching an app from their phone, this new approach could reshape who gets to participate in the $700 billion software development industry. The next billion software creators might not know how to code—but, as Ratatouille taught us, that might be exactly the point.