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Elon Musk Dominates Sky; Controls Two-Thirds of Active Satellites
5-minute tech market update.
TECH BRIEF
Cerebras has launched its new AI chip boasting 44GB of high-speed memory, set to surpass Nvidia's DGX100. It's capable of managing AI models with trillions of parameters using multiple CS-3 systems. Key features include 16-bit model weights ensuring higher accuracy, interoperability with OpenAI’s Chat Completions, and the ability to run Llama3.1 70B models instantly. Initially offering Llama3.1 8B and 70B models, plans are in place for supporting larger models. The product sets a new record in open LLM development and deployment, combining high performance, affordable pricing, and expansive API access.
Emerging AI startups, despite significant capital, are finding it increasingly tough to maintain pace with well-funded rivals like Meta, Alphabet, and Microsoft as the cost of developing AI models surges. As major tech giants invest aggressively in computing power, data, and talent for next-gen AI systems, smaller businesses are facing challenges. Some of these startups attracted significant funding but are being sidelined in fast-paced AI industry developments. The growing financial demands for sophisticated AI software have recalibrated the funding strategies for startups. Meanwhile, a select number of AI firms retain dominance due to vast investment levels.
Google faces a second antitrust trial over its dominance in online advertising markets. The Department of Justice (DOJ) alleges that Google used illegal methods to maintain control over publishing ad servers, ad exchanges, and advertiser ad networks. It is accused of strategically buying companies and blocking those not using its platforms from accessing exclusive ad demand. If found guilty, Google could be required to divest businesses within its ad tech products. This lawsuit comes shortly after Google's recent defeat in another antitrust case concerning the online search market.
Google is increasingly focusing on its subscription business with AI chatbots such as Gemini, a feature reinstated after a hiatus and requiring a $19.99 monthly payment for its use. Still significantly benefiting from search advertising, Google is recognizing the importance of subscription, a sector generating $15 billion annually. This is driven mainly by YouTube but extends to Google One and Pixel sales. As search advertising faces regulatory threats, Google is being encouraged to develop its subscription service further, with Sundar Pichai highlighting 100 million Google One subscribers in February.
Tech leaders including China's Ant Group, Tencent, Baidu and U.S. firms Microsoft, Google, and Meta have collaborated to create the first international standard for Large Language Model (LLM) security in AI supply chains. Unveiled at the Inclusion Conference in Shanghai, the standard is aimed at managing security risks such as data leaks, supplier non-compliance, and model tampering, and is part of the World Digital Technology Academy's greater AI Safety, Trust, and Responsibility initiative.
Elon Musk's SpaceX now controls nearly two thirds of all active satellites, following the launch of the 7,000th Starlink satellite. The internet satellite network, launched in 2019, has grown at a rate of three satellites per day. With 6,370 active satellites operating in low-Earth orbit, SpaceX outnumbers its closest rival, OneWeb, by a factor of ten. Plans to complete the Starlink constellation include launching up to 42,000 satellites, expanding coverage to a global scale.
Elon Musk denied a claim that Tesla discussed revenue sharing with xAI for using its AI models. The alleged agreement, as reported by The Wall Street Journal, would see Tesla incorporating xAI models into its Self-Driving software. Musk stated that xAI's models couldn't run on Tesla's vehicle inference computer and there was no need to license them. Tesla shareholders have previously sued Musk for starting xAI, viewing it as a talent and resources contender.
Salesforce is set to introduce Agentforce, an autonomous AI-centric platform, marking a significant shift towards the generative AI era. The platform, which is a significant evolutionary leap from chatbot AIs, will allow businesses to construct and deploy decision-making AI agents to run atop existing Salesforce applications. The move intimates Salesforce's intention to continue competing vigorously in the evolving AI space.
OpenAI has reached a milestone of one million paid users for its corporate versions of ChatGPT, demonstrating the growing demand for its virtual assistant in spite of substantial competition. This total sum includes users of its team, enterprise, and educational products, showing significant growth from its 600,000 users reported in April.
To comply with Europe's Digital Markets Act, Meta is integrating a third-party chat feature in WhatsApp and Messenger. This allows users to connect to other messaging services from within the apps. Additionally, features like typing indicators and read receipts have been included, with group formation and call features slated for 2027.
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