AlphaGenome Cracks the DNA Code With AI

Plus Claude Just Made Everyone a No-Code App Developer and Higgsfield’s ‘Soul’ Delivers the Look!

Author

Renjit Philip
June 29, 2025 • Estimated Reading Time: 13 minutes

In partnership with

❝

Startups don't win by attacking. They win by transcending.

Paul Graham

Date: 29-Jun-2025

Hey AI enthusiast,

And just when you think you’ve seen it all…there’s always One More Thing in AI.

In this edition:

You are going to enjoy this edition!

Best,

Renjit

PS: Founders- In case you want to prototype and test AI automation /Agentic AI deployment in your business, schedule an appointment here:

AI Has Entered the Chat—and It’s Not Leaving Your Life Anytime Soon

AI isn’t just having a moment—it’s becoming the moment.

More than 1.8 billion people have used AI. Nearly 600 million use it daily. That’s not a trend. It’s a transformation. But here’s the real story: Most of these people use one or two basic tools… and ignore the rest. Menlo Ventures published its 2025 State of consumer AI report and it is insightful!

Market Map of consumer AI tools from Menlo Ventures

The consumer AI wave is here. But it’s fragmented, shallow, and ripe for disruption.

Let’s break it down:

1) 💸 The $12B Market That Should Be $400B

  • Only 3% of users pay for AI today. Yes, let that sink in- compare it to the billions that has been invested by the VCs and by the hyperscalers into data centers with NVIDIA chips.

  • That’s a gaping hole in the market—especially when tools like GPT-4 cost $20/month.

  • Most consumers still see AI as a free toy, not a must-have utility.

🔮 Example: ChatGPT converts only 5% of weekly active users. This would be a disaster in any other consumer SaaS business.

AI Spending Pie as per Menlo Ventures

2) 👨‍👩‍👧 Parents Are the Power Users—Not Just Coders and Students

  • 79% of parents use AI. Nearly 30% use it every day.

  • They’re using it for everything from packing lists (ChatGPT) to scavenger hunts (Gemini).

  • Applications like Goblin Tools (for neurodivergent task breakdowns) and S’moresUp (family management) should be exploding—but no one knows they exist. Brand recall, anyone?

👀 Why aren’t more companies building specifically for parents?

3) 💼 Everyday AI: Still Mostly Email and Lists

  • Top uses: writing emails (19%), to-do lists (18%), and meal planning (16%).

  • This should be the playground of AI-native tools like Motion (calendar AI), Superhuman AI, and Any[.]do AI.

  • Instead? Most people default to ChatGPT or Gemini again.

  • 🤷 Why? Because specialized tools often add friction.

Top AI tools :source Menlo Ventures

4) 🎨 Creative AI: Where the Real Money Is

  • 51% of users turn to AI for writing, 37% for music and audio, and 34% for images.

  • Canva, Midjourney, Runway, Suno, Gamma, and Leonardo AI dominate here. I assume you are trying these tools?

  • Creative tools already account for 45% of consumer AI spending.

:source Menlo Ventures

5) 🔥 Yet platforms like Fiverr and Etsy are quietly getting eaten alive.

You might think: Who hires a freelancer when Suno makes your podcast jingle in 30 seconds? The counterpoint is that AI is still not 100% human quality and I am pretty sure that the top freelancers are using AI as their power tools!

:source Menlo Ventures

6) 🧠 Learning + Vibe Coding = Explosive Growth

  • Tools like Duolingo Max, Speak, Ghostwriter are turning everyone into language masters, writers and content creators. Replit and Cursor are turning non-coders into developers.

  • Cursor hit a $500M run rate in 2 years. Lovable hit $60M ARR in under 12 months. These are unbelievable growth rates!

  • AI is turning “learners” into “builders.” You have seen a number of projects that I (a non-modern coder) have built and share in this newsletter. If I can do it, so can you!

💥 But schools, colleges, and boot camps? They’re still treating this like cheating.

7)🧍 Health + AI = Trust Issues

  • Only 14% use AI for physical or mental health, despite 70% doing health-related tasks weekly. This despite the hype about personalized mental and physical training and advice!

  • Tools like Character.AI dominate “emotional support” (read: talking anime boyfriends).

  • Ash and Curai are trying to bring AI to real care, but trust and privacy kill conversion. So healthcare is not going to be disrupted by AI right away, but will allow for a proliferaton of AI “health” buddies, in my opinion.

👎 Hot take: AI isn’t replacing your therapist anytime soon. But you might use it to decode your bloodwork before your doctor does.

8) 💬 Social + Dating: AI Gets Flirty, Not Just Functional

  • 31% use AI for dating, while 26% use it for companionship.

  • Replika and Character.AI own this weird little corner.

  • But where are Bumble AI, WhatsApp Copilot, or the “AI double-date planner”?

🧪 People roleplay with AI friends, vent to bots, and ask them for pickup lines. Connection is human—but humans are messy. AI feels safer. That’s a big deal.

So What?

⚠️ 6 Places Founders Should Be Building (That Big Tech Isn’t right now)

  1. Healthcare: No one wants GPT advice for chest pain. What else can we do to improve healthcare outcomes?

  2. Money: Monarch and Copilot are cool—but budgeting should be 10x easier.

  3. Relationships: AI can’t hug you, but it can save your marriage.

  4. Family: Family calendars, homework help, and household logistics = nightmare.

  5. Home Maintenance: Who’s building AI for plumbing quotes or IKEA assembly?

  6. Learning: Not just ChatGPT for summaries. Where’s the Khan Academy killer?

🚀 Where It’s Headed Next (and Why It Might Break Things)

  • Voice AI: Wispr and Superwhisper are making Alexa look prehistoric.

  • AI Agents: You won’t plan trips. AI will do it all and just ask you to “confirm.”

  • Consumer Robotics: Companies like Fauna and Matic want your Roomba to evolve into a robot with arms.

  • Multiplayer AI: Think social + AI + games + connection. It’s coming fast.

  • Revenue Shift: Subscriptions die. Ads, transactions, and AI-native marketplaces are on the rise.

Consumer AI is at an inflection point. People love convenience. But when general tools fall short, they’ll pay—if the alternative is dramatically better.

If you’re a founder: Don’t build another ChatGPT wrapper. Build where friction, trust, and complexity meet. That’s where the next generation of billion-dollar products will come from.

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More News scoured from X.com

1/ Google just dropped Gemini CLI

A command-line tool that gives you Gemini 2.5 Pro access straight from your terminal.

Open source. 1M token context. Great for debugging, file ops, and dev workflows.

No UI fluff—just raw power for builders.

2/ HeyGen launches Video Agent

Think of it as a creative OS.

You prompt. It scripts, voices, edits, and delivers a final video—ready to post.

No crew, no software juggling. Just content at scale.

3/ Higgsfield’s “Soul” is here

A photo model trained for fashion-grade realism.

50+ presets. High aesthetic control.

This one’s built for creators who care about how things look, not just what they generate.

4/ DeepMind’s AlphaGenome takes on biology’s dark matter

It models up to 1M DNA base pairs and predicts how mutations impact gene regulation.

Genomics just got an AI-native upgrade.

5/ Claude’s Artifacts just got real

Now you can build functional AI apps inside Claude—no code needed.

The editor is now a live canvas. Intelligence is baked in. Everyone’s a builder now.

6/ ElevenLabs debuts 11ai, an action-ready voice assistant

It’s not just talking—it’s doing.

Connects to tools like Salesforce and Slack. Plan your day, move tasks, and take action—hands-free.

7/ Google ships Gemma 3n: multimodal AI on your phone

Runs on 2GB RAM. Handles image, audio, text, video—all on-device.

Privacy-preserving, offline AI apps. This is what edge AI really looks like.

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