🤖 Data: AI Hype vs Reality

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Happy Wednesday, August 23rd! We've got a bunch of awesome AI-related stories in today's update. So, let's jump right in and check them out!

• US Eyes TikTok Surveillance

• OpenAI Enhances GPT-3.5 Turbo

• Meta's 100-Language AI

• MidJourney's Inpainting Evolution

• AI Hype vs. Reality

• Nasdaq Signals Tech Downturn

• and more...

READ TIME: 4.2 MINUTES

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Tech Companies

Arm Eyes AI & Cloud Expansion (5-minute read)

Arm, the SoftBank-owned chip designer known for its dominance in smartphone processors, is venturing into AI, cloud computing, and automotive markets as it prepares for a $60bn IPO. Despite its substantial market share in mobile and consumer electronics, the company acknowledges limited growth opportunities in these areas. Arm's exclusion from the AI chip market, dominated by Nvidia, poses challenges, but the company sees potential in cloud processors and automotive chips.

Recalled Baby Items on Facebook (3-minute read)

Recalled infant products associated with over 100 deaths are still available on Facebook Marketplace, despite numerous removal requests from federal regulators, Congress members reported. Lawmakers highlighted that the Consumer Product Safety Commission has repeatedly asked Meta, Facebook's parent company, to remove these dangerous items, but they continue to appear.

US Eyes TikTok Surveillance (4-minute read)

US regulators proposed a deal with TikTok, offering vast oversight powers over the app's operations. The draft agreement from Summer 2022 suggests the US government would have unprecedented access to TikTok's records, facilities, and operations, mirroring surveillance concerns previously linked to Chinese officials.

Quick

Uber's Group Rides in India (2-minute read)

Uber launched "Group Rides" in India, allowing users to share trips and split fares with up to three people, aiming for affordability and reduced road congestion.

AI Corner

OpenAI Enhances GPT-3.5 Turbo (4-minute read)

OpenAI introduces fine-tuning to GPT-3.5 Turbo, enabling users to customize the model for specific behaviors and improved reliability. This update allows the model to match or surpass GPT-4's base capabilities for certain tasks. Developers can now better align the AI's tone with their brand, optimize response formats, and reduce prompt sizes, potentially cutting costs by up to 90%. OpenAI also plans to launch a fine-tuning UI for easier monitoring.

Meta's 100-Language AI (5-minute read)

Meta unveils SeamlessM4T, an AI model capable of transcribing and translating nearly 100 languages in both text and speech. Released as open source, this tool is heralded as a major advancement in AI-driven speech-to-text and speech-to-speech translation. The model offers on-demand translations, recognizing source languages without a separate identification system.

MidJourney's Inpainting Evolution (4-minute read)

MidJourney, a leading AI image tool, introduces "Vary (Region)" for inpainting—editing within an image's canvas using text prompts. While Stable Diffusion, a free competitor, already offers similar features, MidJourney's tool focuses on larger image sections for optimal results. However, Stable Diffusion might surpass in accuracy and user experience.

AI Hype vs Reality (5-minute read)

While nearly 40% of S&P 500 companies have mentioned AI during earnings calls, only 16% referenced it in their regulatory filings, indicating a disparity between public enthusiasm and actual material impact. Data from Alphasense reveals this trend, suggesting that while many companies are eager to discuss AI's potential benefits, few have seen significant results.

AI Art: No Copyright (4-minute read)

A US federal judge, Beryl A. Howell, has determined that AI-generated artwork cannot be copyrighted. The decision came after Stephen Thaler's multiple attempts to copyright an image produced by his Creativity Machine algorithm were denied by the US Copyright Office.

Quick

Meta's AI Off-Switch for EU (4-minute read)

Ahead of the Digital Services Act (DSA) deadline, Meta introduces non-personalized content feeds for Facebook and Instagram in the European Union, mirroring TikTok's earlier move.

Snapchat's AI 'Dreams' Expands (3-minute read)

Snapchat is delving deeper into generative AI, introducing "Dreams" to place users in imaginative scenarios using AI-generated selfies. Upcoming features also include collaborative "Dreams with Friends."

Markets & Money

China's Economy Affects West's Inflation (5-minute read)

China's economic slowdown might alleviate Western inflation concerns. Recent declines in Chinese consumer spending, factory production, and long-term asset investments have raised alarms. Despite this, China's deflation could benefit Western markets by cooling global inflation, as a weaker yuan makes Chinese goods cheaper for stronger currency nations, reducing demand for US and European products.

Nasdaq Signals Tech Downturn (4-minute read)

Ahead of Nvidia's anticipated earnings report, the Nasdaq 100 displayed a technical "sell" signal, indicating potential momentum loss. Fairlead Strategies' Katie Stockton suggests the market may face weeks of correction. This comes as Nvidia, a chip giant valued at $1 trillion, prepares to unveil its Q2 earnings, with high expectations for its AI chip sector. The Nasdaq 100's key support level is at 13,834, hinting at a possible 6% drop from present figures.

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