💻 ByteDance Breaches OpenAI Terms to Create AI Rival: Project Seed Exposed

Hello Tech Enthusiasts,

It’s Monday, December 18, and we have more tech news fresh from the press. Here's a sneak peek at what is inside today’s update:

• Apple Pay Lawsuit - Antitrust allegations against Apple, Visa, and Mastercard.

• App Store Overhaul - Apple redefines pricing models.

• Google AI Studio - Streamlined app and chatbot development.

• Self-Developing AI - AI models autonomously create smaller versions.

• ByteDance AI Controversy - OpenAI terms were breached in a secret AI project.

• Microsoft's Phi-2 AI - A new compact AI revolutionizes the market.

• 2024 AI Market Outlook - Anticipating AI-driven economic recovery.

• and more…

Let’s dive into it!

Tech Companies

Apple, Visa, Mastercard Face Lawsuit over Alleged Apple Pay Antitrust Scheme: (5-minute read)

Apple is facing a proposed class action lawsuit filed by Mirage Wine & Spirits, alleging that the tech giant accepted bribes from Visa and Mastercard to maintain their dominance in point-of-sale card services for Apple Pay transactions. The agreement ostensibly prevented Apple from developing a competing point-of-sale network or allowing third-party wallet apps to use the iPhone's NFC function, resulting in increased merchant fees.

Apple's 'Contingent Pricing' Revamps App Store Competition Dynamics (4-minute read)

Apple is testing a 'contingent pricing' feature aimed at boosting subscriber numbers and competition on its App Store. This function will enable app developers to offer discounts to customers who are active subscribers of another subscription. Collaborations between two different developers or one developer with multiple apps are also possible under this initiative.

DocuSign May Sell: Stocks Jump 14% Amidst Sale Talks (3-minute read)

DocuSign, the e-signature software company, is reportedly exploring a potential sale, leading to a rise in share price by about 14%. Despite losing a majority of its value last year, the company has seen a 16% increase in stock in 2023. Current talks on the sale are preliminary.

AI Corner

Google Unveils AI Studio: Building Apps and Chatbots to Get Easier (9-minute read)

Google has launched AI Studio, an accessible tool for developers to create apps and Gemini-based chatbots. The web-based tool offers a gateway to the larger Gemini ecosystem, with plans to incorporate Gemini Ultra next year. The service includes a generous free quota allowing rapid iteration on ideas. Although data from the input and output of the API and web app can be seen by Google reviewers, it is de-identified from the user's account and API key. Developers can immediately start publishing their AI Studio applications or use them through the API or Google’s SDKs.

Revolutionary Leap: Larger AI Models Now Creating Smaller Counterparts Autonomously (5-minute read)

A team of researchers from MIT, several University of California campuses, and AI tech firm Aizip are using large AI models like ChatGPT to autonomously generate smaller tools dubbed 'TinyML'. These inexpensive, portable models can be used for specific tasks in facial recognition and household appliances. The process signals a step towards self-evolving AI and a ""fully automated pipeline"", contributing to the development of an AI ecosystem where smaller models work in conjunction with larger ones.

ByteDance Breaches OpenAI Terms to Create AI Rival: Project Seed Exposed (5-minute read)

ByteDance, parent company of TikTok and an AI global leader, has reportedly been secretly using OpenAI's tech to develop its project under code name 'Project Seed', a competing large language model (LLM). The company, which allegedly purchased access through Microsoft, is accused of violating OpenAI’s terms of service that prohibit the development of competitive AI models.

Microsoft Outshines Rivals with New Compact AI, Phi-2 (7-minute read)

Microsoft Research has announced the Phi-2 small language model AI, which performs comparably to bigger counterparts such as Meta's Llama 2-7B and Mistral-7B, despite only having 2.7 billion parameters. It outdoes Google's Gemini Nano 2 and promises less prejudiced responses. However, currently, it is solely licensed for research purposes, restricting commercial usage.

Markets & Money

2024 Market Outlook: Potential Rolling Recoveries and AI Adoption on the Rise (7-minute read)

The 2024 market outlook suggests potential economic difficulties, but rolling recessions across key sectors could transition into more durable recoveries. The Federal Reserve could cut interest rates up to 0.75%, depending on the economic landscape. Notably, the ""Magnificent 7"" - Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla - will likely dominate, but should not be exempt from diversification. A shift from AI creators to adopters across industries is expected as companies aim to boost productivity. The market will also see a heightened focus on firms with strong financials and realistic growth as debt servicing becomes crucial.

Stunning 7-Week Rally Bolsters Tech Markets Amid Fed's Projected Rate Cuts (12-minute read)

U.S. stocks experienced a mixed closing last Friday, however, by extending a seven-week winning streak due to optimistic economic indicators and the anticipated Federal Reserve's interest rate cuts in 2024. Key players such as the S&P 500 Index and Nasdaq Composite contributed largely to this positive trend. The week's rally saw central bank easing inflation pressures and stock market consolidation. Upcoming weeks may see a taper off in trading activity before the year ends.