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OpenAI's 5-Tier Plan on Way to Human-Level AI Intelligence
Tech update + message from the author.
Kristoffer Lindström
July 12, 2024
TECH BRIEF
Japan's SoftBank has officially acquired UK-based AI chipmaker Graphcore, known for developing a unique " Intelligence Processing Unit" for AI workloads. The acquisition deal comes after Graphcore's struggle in the resource-intensive AI hardware business and its troubled finances. While the exact acquisition amount wasn't disclosed, the deal looks favorable by the co-founders Nigel Toon and Simon Knowles, who will remain in their executive roles. Graphcore will continue its operations as a SoftBank subsidiary and is expected to significantly increase its UK headcount.
Apple has reached an agreement with the European Commission to open its iPhone "tap to pay" system to third-party providers, dodging a possible substantial penalty. The decision, effective from July 25, follows accusations of the tech giant misusing its dominant position by restricting access to its payment platform. This move will foster fair competition in the European Economic Area, enabling alternative service providers to mirror the 'tap and go' service on iPhones, and will be supervised by a trustee for the next ten years.
AI pricing for SaaS copilots is a crucial concern, given their potential to boost productivity but decrease seat demand. Current trends show a wide range of pricing strategies with some companies, like Zapier and Google, charging more for AI features compared to the base seat. The market ratio varies significantly, unaffected by higher seat prices. While a 40% productivity gain is generally priced into these services, companies like Microsoft and ServiceNow suggest AI features could enhance productivity by approximately 50%.
Asia's venture funding landscape has hit its lowest point since 2015, clocking in at $14.6 billion in Q2 2024 — a 24% decline from Q1 and a 32% decrease YoY. Deal volume also experienced a downswing, with a 15% drop QoQ and a 27% fall YoY. Even late-stage growth rounds fared poorly, with only $14.6 billion recorded, marking a significant dip of 24% QoQ and 32% YoY. The promising startup Zepto, with their $665 million round, and Hozon's remarkable $690 million venture couldn't pull the region out of its slump.
AMD is acquiring Silo AI, Europe's largest private AI lab based in Finland, for $665 million. The purchase is a strategic move to strengthen AMD's position in artificial intelligence and allow for customized AI solutions for businesses worldwide. Silo AI, with over 300 experts across six countries, specializes in tailored AI platforms and solutions. This acquisition forms part of AMD's AI strategy and investment, which has surpassed $125 million in the past year.
China's fastest-growing social media platform, Xiaohongshu has received backing from venture capital firm DST Global, marking an unusual move of foreign investment in a technology sector that has been largely avoided since regulatory crackdown in Beijing. With an increased valuation of $17bn, the platform which is favored by urban-dwelling women and has support from Chinese tech giants Tencent and Alibaba is expected to have a substantial initial public offering following robust growth.
OpenAI has introduced a five-tiered system to monitor its progress towards creating artificial general intelligence (AGI), capable of outperforming humans. The firm believes it's advancing to the second level, known as ""Reasoners"". The hierarchy ranges from the current AI (Level 1) to an AI able to manage an organization (Level 5). OpenAI CEO, Sam Altman, expresses optimism that AGI might be realized within this decade.
Amazon has introduced a lead generation ad service, aimed at businesses not currently selling on its platform. The feature facilitates customer sign-ups directly within an ad, distributed across Amazon’s network, including Twitch, IMDb, and third-party sites. This expansion allows non-Amazon sellers access to Amazon's rich data ecosystem to extend their customer base. The move is seen as Amazon's push into the broader digital advertising market.
YouTube Shorts has introduced a TikTok-like text-to-speech feature, enabling users to add artificial voiceovers to their videos. Additional updates include auto-generated captions, a range of fonts and colours for text overlays, and a set of Minecraft-themed effects. Benefiting creators, these moves underline YouTube's strategy of incorporating popular TikTok functionalities.
QUICK
Hedge Funds Turn to South Korean Chipmakers Amid AI Demand Surge - Hedge funds are targeting South Korean chipmakers like SK Hynix and Samsung Electronics, anticipating an AI-driven surge in the demand for high-end memory chips. Despite risks, potential returns driven by a robust AI ecosystem and persistent demand from the ongoing Sino-U.S. tech war are attractive.
Intel Capital Invests $15M in AI Construction Startup Buildots - Intel Capital has led a $15 million investment in AI firm Buildots, potentially improving efficiencies in construction. The technology, although unconfirmed in Intel's projects, could contribute to substantial cost savings.
Armada Secures $40M from Microsoft's M12, Eyes Real-time Disaster Response Technology - Edge computing startup Armada has secured $40 million from Microsoft's M12, hitting a total of $140 million in funding. In addition, their products will be available on Microsoft Azure's marketplace.
Low Apple Vision Pro Sales Force Consideration of Cheaper Models - Sales of Apple's Vision Pro headset are weak, moving under 100,000 units per quarter. Analysts pin the slow sales on its $3,500 price, awaiting a cheaper model for better performance.
Tesla Delays Robotaxi Unveiling As Engineers Refine Prototype - Tesla's unveiling of its much-anticipated robotaxi is reportedly delayed until October, aiming to perfect its self-driving technology and overcome regulatory hurdles.
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