AI Weekly Digest - November 4 2024

Meta CEO Mark Zuckerberg hails a 'good quarter driven by AI progress'

Meta CEO Mark?Zuckerberg hailed "a good quarter driven by AI progress across our apps and business", as the Facebook, WhatsApp and Instagram owner reported Q3 revenue up 18% year-on-year to $40.59bn, with operating profit up 26% to $17.35bn. Net profit climbed 35% to $15.69bn. The social media giant's founder added: "We also have strong momentum with?Meta AI, Llama adoption, and AI-powered glasses."

Google to build on AI usage to streamline workflow, manage headcount

Google parent Alphabet?will build on current cost-cutting efforts around using AI to help streamline workflow and manage headcount and the company’s physical footprint, CFO Anat Ashkenazi said after the group's eye-catching Q3 gains: “I plan to build on these efforts but also evaluate where we might be able to accelerate work and where we might need to pivot to free up capital for more attractive opportunities.”

Report:?xAI in talks over funding round to create $40bn value

Elon Musk's AI startup xAI is reportedly talking with investors for a new funding round which could value the company at $40bn. The Wall Street Journal cited people familiar with the matter saying it aims to raise several billion dollars, but that discussions are still in the early stages. Representatives for xAI declined to comment.

SoftBank's Son: Nvidia 'undervalued', 'hundreds of billions' needed to create super-intelligence

SoftBank CEO Masayoshi Son believes that Nvidia, which has seen its stock price soar 191% in the year so far and more than 2,600% over the past five years amid the AI boom, is "undervalued". Speaking at the Saudi FII Summit, Son also said "hundreds of billions of dollars" will be needed to achieve artificial super-intelligence.

PM: AI and creative industries 'central to this government’s driving mission on economic growth'

Sir?Keir Starmer has said journalism is the “lifeblood of democracy” in an article marking the launch of the?News Media Association’s Journalism Matters campaign. The PM, who said both AI and the creative industries "are central to this government’s driving mission on economic growth", added that "we recognise the basic principle that publishers should have control over and seek payment for their work, including when thinking about the role of AI". Pointing to the more than 900 local and national news titles in the UK, he said: "For all the prophecies of doom about the future of news, that represents an extraordinary strength. The British news industry reaches over 80% of the population. However, this vitality should not blind us to the challenges."

AI significantly 'improving YouTube recommendations'

AI is significantly improving YouTube recommendations, Google chief business officer Philipp Schindler said after its Q3 ad revenue of $8.92bn topped market expectations. He said AI language model Gemini gives YouTube the ability to “recommend more relevant, fresher and personalised content to the viewer”.

Channel 4 not using AI to write dramas 'anytime soon'

Channel 4 will not be using AI to write dramas “anytime soon”, according to the broadcaster's chief content officer. However, Ian Katz acknowledged that "I do think AI has a part to play in the running of a broadcaster, just as it does in any modern business". Speaking at a Broadcasting Press Guild event, Katz said: “We are exploring using AI in different ways around creating advertising, around looking at ways that the production process can be speeded up in some really interesting applications in those areas.” He added: “But I think philosophically, where we are at on it is that we are all about empowering creators, not replacing creators. And where we use AI, we’re not looking for the car to replace the horse and cart."

Meta AI agrees deal to use Reuters news content

Meta AI has agreed a deal to use Reuters news content to answer user questions in real time about news and current events. Financial deals of the tie-up were not revealed. A Reuters spokesperson said: "We can confirm that Reuters has partnered with tech providers to license our trusted, fact-based news content to power their AI platforms. The terms of these deals remain confidential."

Late chat show legend Parkinson to 'host'?AI-driven interview podcast

An AI-driven celebrity interview podcast will be launched later this year, 'hosted' by what The Observer called an 'exact vocal replica' of Sir Michael Parkinson, who died last year. The eight-part?unscripted series, Virtually Parkinson, made by?Deep Fusion Films, will allow new guests to be questioned in Parkinson's style, with the backing of the veteran presenter's family and estate. Mike Parkinson, son of Sir Michael, said: "We're going for a new generation of guest talent, but that doesn't mean he would not go back again to people he interviewed before."

Apple releases AI-powered tools for US users of iPhone, iPad, Mac

Apple has released the first set of new AI-powered tools for the iPhone, iPad and Mac to users in the US. The update means users will be able to use Apple Intelligence to edit their writing across different apps and update virtual assistant Siri to make it smarter and more conversational. It is also integrating ChatGPT into its devices as part of Apple Intelligence later this year. The tools are due to launch in the UK in December but will only be available to iPhone 16 owners or users with a Pro model of the iPhone 15.

Tim Cook: Apple Intelligence introduces 'new era'

Apple CEO Tim Cook said the launch of Apple Intelligence “introduces a new era” for the firm’s devices and is “delivering brand new experiences and tools that will transform what our users can accomplish”. He said: “Apple Intelligence builds on years of innovation in AI and machine learning to put Apple’s generative models at the core of our devices, giving our users a personal intelligence system that is easy to use – all while protecting their privacy. Apple Intelligence is generative AI in a way that only Apple can deliver, and we’re incredibly excited about its ability to enrich our users’ lives.”

Around 75% of OpenAI business from consumer subscriptions

Around 75% of ChatGPT developer OpenAI’s business comes from consumer subscriptions, the company's CFO has said. Sarah Friar told Bloomberg TV: “We have been wowed at just the pace of growth, particularly on the consumer side. Even our enterprise businesses, they are young, but they are already doing an incredible amount of annualised revenue. We’re really excited by the potential there.” Friar also said ChatGPT currently has 250m weekly active users, and that OpenAI is converting free users to the paid product at a rate of 5% to 6%.

Nvidia briefly world's most valuable company with $3.49tn value

AI chip giant?Nvidia?briefly became the world's most valuable company as the US group's share price climbed to give it a market value of $3.49tn. However, Apple?later regained top spot as its stock price also rose, giving it a value of $3.53tn.?Microsoft?was in third, at $3.18tn. In 2024 Nvidia shares have seen a 196% rise. Apple is up 25% and Microsoft 15.5%.

Angel investor:?Cut cost and complexity of visas for people with key AI expertise

The UK should reduce the cost and complexity of visas for people with key AI expertise, angel investor Matt Clifford has reportedly told the government. The FT reported that Clifford also told tech secretary Peter Kyle to create special zones for data centres. The government-commissioned AI Opportunities Action Plan, set to be published in November, has been submitted by Clifford. The FT said it 'sets out dozens of recommendations on how to make Britain more attractive for companies developing machine learning technologies'. Kyle has already committed to putting AI at the heart of the government’s growth agenda, claiming if fully integrated into the economy it would increase productivity by 5%.

'Customer and partner interest high' for AMD AI chips

Discussing AMD's AI chips in a call after its Q3 results, CEO Lisa Su said: “Customer and partner interest for MI325X is high. Production shipments are planned to start this quarter."

Government faces media backlash over plan to allow AI groups to scrape content

The government is facing a media backlash over its plans to allow AI groups to scrape content from publishers and artists. The?BBC is among the organisations vehemently opposed to a plan by ministers which would allow tech groups to train artificial intelligence models using online content by default, unless publishers and content creators “opt out”. The BBC said its content should not be used to train AI models without authorisation, and insisted: “It’s critical that publishers and media companies retain control over how their content is used when it comes to AI... The onus should remain on AI developers to seek permission for use of content, not on publishers to opt out.”

NMA CEO: Opt-out system 'hammer blow to creative industries'

News Media Association?CEO Owen Meredith said an opt-out system would bring “a hammer blow to the creative industries, who have been an engine of growth for the UK economy for a decade or more”. And Chris Dicker, a director of the?Independent Publishers Alliance, said: “Using anything ever posted online without explicit consent is a direct threat to privacy. An opt-out approach isn’t enough. The government needs to step in and enforce strict safeguards before it’s too late, and not give in to the big-tech lobbying.”

Reports: Meta working on AI-powered search engine

Meta is reported to be working on an artificial intelligence-powered search engine to reduce its reliance on Google and Microsoft's Bing. The search engine would provide AI-generated search summaries of current events within the company's chatbot, Meta AI, according to reports.

Nadella: Competition will drive down cost of artificial intelligence

Microsoft?CEO Satya Nadella said competition will significantly?drive down the cost of artificial intelligence until it can be enjoyed by all. In an interview with the Times, he was asked if it could be an issue that Microsoft and US Big Tech rivals?Google?and?Meta?in effect own the new technology. "I don't know if that makes a difference," he said. "The soaps I use are owned by somebody in some company. And so, is it really that harmful if multinational companies compete vigorously with each other, producing something whose prices are dropping 20 times every 18 months? I would love that world for everything I consume."

December launch for OpenAI's Orion

OpenAI?will reportedly launch its next frontier model Orion by December but will not make it available via?ChatGPT?like predecessors GPT-4o and o1, reserving it instead for corporate partners.