Gen AI for Business Newsletter, edition #25

October 6 newsletter

Welcome to the 25th edition of Gen AI for Business! I am so grateful and thankful for each of you—if you’re new here, a warm welcome! And to my returning subscribers, thank you for sticking with me on this Gen AI for Business learning journey for the past 6 months!

In this milestone issue, we dive into developments in GenAI models, industry trends, and strategic innovations transforming business landscapes.?

We explore major developments like the competition between Google’s Gemini 1.5 and Meta’s Llama 3.2, as well as NVIDIA’s NVLM-D 1.0 entering the LLM arena. We’ll dig into AMD’s leap into the small model market with AMD-135M and Fujitsu’s Takane LLM targeting key industries like healthcare. You'll also learn how companies like Accenture are training 30,000 employees on Nvidia AI tech, along with tips for cutting LLM costs and insights on how AI is reshaping police report writing, healthcare diagnostics, and workforce management.

We also cover regulatory updates such as California’s new AI transparency laws, aiming to improve disclosure of training data used by AI models, and the latest actions by the FTC against deceptive AI practices. Regional updates include Google’s $1 billion investment in Thailand for AI data centers and China’s push to reduce reliance on U.S. AI chips.?

On the tools side, look forward to learning about new offerings like NVIDIA’s NVLM-D-72B on Hugging Face, OpenAI’s Canvas for collaborative writing, and Google's NotebookLM for generating AI podcasts.

Ready to dive in?

And as always, if you enjoyed this letter, please leave a like or a comment and share! Knowledge is power.?

Thank you,

Eugina

News about models and everything related to them

We cover Google and Meta releasing advanced AI models. Google launched Gemini 1.5 with improved performance and cost efficiency, while Meta introduced Llama 3.2 with vision and text capabilities. AMD entered the small language model market with AMD-135M, and NVIDIA released its NVLM-D 1.0, rivaling larger models like GPT-4o. Fujitsu's Japanese LLM, Takane, focuses on industries like healthcare and finance, and EXL introduced an insurance-specific LLM. Additionally, MarkTechPost offered ten strategies to reduce LLM inference costs.

• ICYMI: Google and Meta update their AI models amid the rise of “AlphaChip” | Ars Technica ? This week, Google and Meta both introduced significant updates to their AI models. Google released Gemini 1.5-Pro-002 and Gemini 1.5-Flash-002, improving performance in tasks like math, long-context handling, and vision. Along with these enhancements, Google cut costs by more than 50% and increased request rates, making Gemini more affordable and faster for developers. Meanwhile, Meta launched Llama 3.2, featuring vision-capable large language models and lightweight text-only models for mobile devices. The new release emphasizes Meta's open-source approach, with Llama 3.2 performing well on both image recognition and text tasks. Additionally, Google unveiled AlphaChip, a reinforcement learning method that speeds up electronic chip design. AlphaChip, used in Google's Tensor Processing Units (TPUs), can design high-quality chip layouts in hours instead of months, marking a significant advancement in AI-powered chip development. Companies like MediaTek have already adopted this technology, showcasing AI's expanding role in hardware design.

• If your AI seems smarter, it's thanks to smarter human trainers | Reuters ? Initially, AI models were trained by lower-cost workers handling basic data labeling tasks, but now companies are hiring experts such as licensed physicians, financial analysts, and historians. Firms like Invisible Tech employ over 5,000 trainers globally to support AI companies in refining their models. This trend highlights the growing need for human expertise in AI development, creating a niche for skilled trainers to improve AI performance without needing to code. As competition in this space intensifies, more companies are emerging to meet the demand for high-quality training.

• ICYMI: AMD Releases AMD-135M: AMD's First Small Language Model Series Trained from Scratch on AMD Instinct? MI250 Accelerators Utilizing 670B Tokens - MarkTechPost AMD has unveiled its first small language model, AMD-135M, built on the LLaMA2 architecture and optimized for performance on its MI250 accelerators. This model, which has 135 million parameters, marks AMD’s strategic push into the AI industry. It supports tasks like text generation and language comprehension and is designed for easy integration via the Hugging Face Transformers library. Trained on datasets like SlimPajama and Project Gutenberg, AMD-135M demonstrates strong performance, particularly in NLP tasks, and showcases AMD’s commitment to delivering high-performance, accessible AI models for research and commercial use.?

• Gloves off? NVIDIA's New LLM Puts Question Marks Over OpenAI's Just-Acquired $157 Billion Valuation NVIDIA has launched its open-source Large Language Model (LLM), NVLM-D 1.0, based on 72 billion parameters, which rivals much larger models like OpenAI’s GPT-4o and Meta’s Llama 3-V. This has raised questions about the justification of OpenAI's recent $157 billion valuation, particularly after OpenAI raised $6.6 billion including NVIDIA. While OpenAI’s user base has reached 200 million, NVIDIA’s established ecosystem and the performance of its new LLM suggest strong competition in the AI landscape.?

NVIDIA's deep pockets and established ecosystem definitely give them an advantage, while OpenAI’s massive valuation and rapid cash burn are raising some eyebrows. It’s going to be quite the battle in the AI space!? While OpenAI is making headlines with its high valuation and cash burn, startups like Mistral are steadily making progress under the radar. It's interesting to see how the quieter players might end up being the ones to watch.?

And here is good coverage, including benchmarking and AI researchers’ reactions to the news: Nvidia just dropped a bombshell: Its new AI model is open, massive, and ready to rival GPT-4 | VentureBeat By open-sourcing the model, NVIDIA aims to democratize AI development, allowing smaller organizations to access cutting-edge technology, potentially reshaping AI innovation across the industry.? NVIDIA's NVLM-D-72B benchmarks competitively, showing near-parity with models like GPT-4o and Llama 3-V, especially in vision and language tasks. Notably, it improves text-only performance by 4.3 points across key benchmarks, outperforming in math and coding tasks where similar multimodal models typically struggle. The model's ability to handle complex inputs, such as interpreting memes and visual humor, sets it apart in versatility and adaptability.??

Visit our Resources section for the Hugging Face file depository for this new model.

• Fujitsu intros Japanese LLM for gen AI in global government, finance, healthcare Fujitsu's newly launched Takane, a Japanese-language large language model (LLM) developed with Cohere, is now available for global enterprises. It integrates advanced RAG techniques to reduce hallucinations and is customized for industries like government, finance, healthcare, and legal sectors, where precision is critical. Takane offers high Japanese proficiency, supports compliance with laws and regulations, and can be fine-tuned with company-specific data. The model outperforms other LLMs on Japanese benchmarks and aims to accelerate AI adoption in secure, business-focused environments. Fujitsu's partnership and investment (from teh summer) in Cohere are being leveraged effectively through the release of Takane, a specialized Japanese-language LLM.?

Fujitsu's introduction of the Japanese-language LLM, Takane, highlights the growing focus on multilingual capabilities, allowing companies to adopt generative AI solutions in their native languages. This is crucial, especially for industries like government and healthcare, where high precision and local language nuances are essential.

• EXL Launches Insurance Specific LLM - EXL’s new Insurance LLM, developed with NVIDIA AI Enterprise, is designed for precise, insurance-specific tasks like claims reconciliation, data extraction, and anomaly detection, using NVIDIA's NeMo framework for optimized accuracy. It achieved 30% higher accuracy on insurance tasks compared to generic LLMs, enhancing efficiency and lowering costs while ensuring compliance. The LLM can handle structured and unstructured data, improve claims processing, and facilitate real-time interactions, with future applications planned across underwriting, subrogation, and premium audits.?

Several industries are developing specific LLMs tailored to their unique needs. For example, the healthcare industry is seeing the rise of LLMs focused on medical records, diagnostics, and clinical research, while the financial sector has specialized LLMs for compliance, risk management, and fraud detection. The legal sector has also embraced LLMs for contract analysis and legal research. These industry-specific models are optimized to handle domain-specific language, regulations, and workflows, enhancing their utility and precision compared to more general LLMs. Industries often start with a generic large language model (LLM) and then fine-tune it using domain-specific data to make it more relevant for their needs. This process involves training the model on specialized datasets that reflect the unique language, terminology, and requirements of a specific field, such as insurance, healthcare, or finance. By fine-tuning the model with industry-specific data, companies ensure the AI can accurately understand and handle tasks particular to that sector, such as compliance, risk management, or customer service.

• Ten Effective Strategies to Lower Large Language Model (LLM) Inference Costs - MarkTechPost ? the article outlines ten effective strategies to reduce Large Language Model (LLM) inference costs. These include techniques like quantization (reducing model precision), pruning (removing less important parameters), knowledge distillation (training smaller models), batching (processing multiple requests simultaneously), and model compression. It also covers early exiting, using optimized hardware, caching, prompt engineering, and distributed inference to make AI operations more cost-effective while maintaining accuracy and performance.

Gen AI news from different industries

The World Economic Forum stresses the need for ethical governance to ensure equitable outcomes, with its AI Governance Alliance working on frameworks to address risks such as data bias and misinformation. In education, UT Austin launched AI tools like UT Sage to support personalized learning, while Australia is exploring GenAI to enhance homework effectiveness. Legal sectors are shifting to alternative fee arrangements, driven by AI's efficiency, and healthcare is slowly adopting AI for diagnostics, though trust remains low among clinicians.

• Generative AI: Here’s the latest research from the Forum emphasizes generative AI's potential across sectors like healthcare, education, and manufacturing, underlining the importance of ethical governance to ensure equitable outcomes. Their AI Governance Alliance promotes responsible frameworks to address risks such as data bias and misinformation. The Forum’s studies highlight AI's role in personalizing education, enhancing healthcare delivery, and transforming industries through automation, while also stressing the need for data equity and responsible AI use in advancing global innovation. You can subscribe to get updates directly into your inbox.??

Education

• AI in EDU: UT Austin introduces new AI support for teaching and learning - Office of the Executive Vice President and Provost ? The University of Texas at Austin has introduced several AI resources to enhance teaching and learning for faculty, staff, and students. Key among these is UT Sage, an AI tutor specifically designed to support students with difficult foundational concepts as determined by faculty. Built on principles like metacognition, interactive engagement, and self-regulated learning, UT Sage aims to bridge the gap between classroom instruction and extended learning, offering personalized and secure AI assistance. UT Austin also launched a Generative AI Guide to help instructors navigate the complexities of using AI in the classroom. This guide covers policy considerations, course design, assessment, and the advantages and disadvantages of integrating AI into coursework. Additionally, UT Austin is one of four institutions leading the Artificial Intelligence Project Advisory Group through the Texas Higher Education Coordinating Board (THECB). This initiative connects 324 faculty and staff from 74 institutions across Texas to develop resources, lead workshops, and ensure responsible AI integration in higher education.

Many universities, like UT Austin, are now developing AI frameworks to integrate AI tools responsibly into their teaching and learning environments. These frameworks not only provide guidelines for using AI but also focus on preparing students for an AI-driven future by offering tailored AI support, developing resources for faculty, and ensuring ethical AI use. It’s a growing trend in higher education, with more institutions launching similar initiatives to equip both educators and students with the tools and knowledge to navigate AI in academia and beyond.

• How GenAI is transforming homework | The Educator K/12 Similar concerns and actions are being taken in Australia.? Lynn Gribble, associate professor at UNSW Business School, sees GenAI as an opportunity to make homework a more effective tool for preparing students for a tech-driven future. She advocates for moving away from tasks like simple lookups or writing assignments toward activities that require students to apply and demonstrate their knowledge. However, integrating GenAI into classrooms presents challenges. A federal government report outlined 25 recommendations, stressing the need to make GenAI a national educational priority, ensure equal access, and include AI literacy in curricula. Jihyun Lee, professor at UNSW Arts, Design & Architecture, called GenAI an “excellent assistant” but noted that its imperfect performance has increased teachers’ workloads. Some educators have even returned to traditional paper tests to mitigate these challenges, as AI can increase cognitive load for lower-ability students. To navigate these obstacles, educators are encouraged to use GenAI as a tool that enhances critical thinking. Gribble suggests allowing students to use GenAI while requiring them to explain their understanding, promoting deeper engagement. Face-to-face assessments may help ensure students grasp the material beyond relying on AI tools. Parents also play a crucial role in overseeing responsible AI use at home, ensuring that children use GenAI tools appropriately. Gribble emphasizes that GenAI cannot replace the human element in education. She underscores the importance of creativity, ethics, and critical thinking, encouraging educators to remain as guides, helping students see the broader impact of knowledge. In this AI-assisted future, educators must continue to act as storytellers, connecting knowledge and critical thinking to real-world applications.

Legal

• Will alternative fee arrangements be the new pricing model for AI-driven legal work? - Thomson Reuters Institute ? In-house counsel, grappling with rising costs, are exploring AI as a tool to enhance workflows and reconsider the billable hour model, potentially increasing the adoption of alternative fee arrangements (AFAs). While some legal tasks may become more efficient with AI, the challenge will be balancing time savings with added value. Both in-house counsel and law firms will need to take the initiative in redefining pricing structures in this evolving landscape. As Generative AI improves efficiency by reducing the time spent on tasks, the traditional billable hour model becomes less sustainable. By adopting alternative fee arrangements (AFAs) or value-based pricing, law firms can better align their charges with the value delivered to clients. This allows firms to maintain profitability while also meeting client demands for cost-effective legal services, as AI reduces the labor needed for routine tasks.

Healthcare

• Here's how AI is set to disrupt healthcare — albeit slowly AI in healthcare faces hurdles, with 55% of clinicians doubting its readiness for medical use, according to a GE Healthcare survey. In the U.S., only 26% trust AI. Despite these concerns, AI is making strides in diagnostics, streamlining medical imaging, and improving accuracy. Pharma stocks driven by AI are gaining traction, with potential growth in drug discovery. Morgan Stanley estimates a 2.5% improvement in preclinical development could lead to 30 new drug approvals over 10 years, worth $70 billion. AI adoption in healthcare is slow but holds promise for long-term growth.??

• Role for Artificial Intelligence in the Detection of Immune-Related Adverse Events | Journal of Clinical Oncology explores the role of large language models (LLMs) in detecting immune-related adverse events (irAEs) from electronic health records, showing that LLMs have higher sensitivity than traditional methods like ICD codes. The study emphasizes the potential of LLMs to enhance accuracy, efficiency, and early detection of irAEs in oncology, while acknowledging challenges like false positives and a lack of severity assessment. Integrating these tools in clinical practice could transform patient care and oncology research by improving real-time monitoring and data standardization.??

Supply chain

• Securing the AI Software Supply Chain The paper from Google Research discusses the growing risks in the AI software supply chain, highlighting the need for security measures as AI becomes more integrated into products. The document outlines their approach using tools like Binary Authorization for Borg (BAB), SLSA, and cryptographic signing solutions like Sigstore. It also offers practical guidance for organizations to secure their AI supply chains. The focus is on adapting existing software supply chain practices to AI without reinventing the wheel.

Securing the AI software supply chain is critical because as AI becomes more embedded in industries, vulnerabilities in the software development process could lead to breaches or exploitation. Google's approach, using tools like BAB, SLSA, and Sigstore, introduces rigorous security and verification methods to ensure that AI models and data are trustworthy. This is groundbreaking as it adapts proven software security techniques to the AI context, addressing unique risks like model manipulation or data poisoning, ensuring safer AI deployment. Businesses are encouraged to follow the outlined strategies to enhance their AI security. And while Google already offers solutions like BAB and Sigstore, the paper aims to promote secure AI development across industries, prioritizing public trust and safety in AI systems. So, not a sales pitch at all ;)

??Software development

• https://www.cio.com/article/3540579/devs-gaining-little-if-anything-from-ai-coding-assistants.html A recent study by Uplevel revealed that developers using AI coding assistants like GitHub Copilot did not experience significant productivity gains and, in fact, saw a 41% increase in bugs. The study measured metrics such as pull request cycle time and throughput but found no notable improvements. Despite these findings, some companies, like Innovative Solutions, reported a 2-3x boost in productivity, highlighting varied experiences across different teams. Experts suggest AI coding assistants require careful usage and are unlikely to fully replace human developers.

HR

• Insights to shape organization culture for success In the generative AI era, upskilling and reskilling workforces is crucial for organizations to stay competitive. Companies should focus on developing AI literacy tailored to business outcomes, using a human-centered approach to learning and development (L&D). This can involve collaboration between HR and business leaders, integrating learning into everyday workflows. By focusing on roles such as leadership, technical teams, and frontline workers, companies can ensure that employees develop the necessary skills to effectively use and integrate AI technologies.?

Regional and regulatory updates

JioGenNext announced its new cohort of AI-driven startups, highlighting the trend of corporate accelerators supporting diverse AI applications like natural language processing and workflow automation. Pieces Technologies settled a case with the Texas AG over misleading marketing of its AI tools. The FTC cracked down on deceptive AI claims across industries as part of "Operation AI Comply." The World Bank launched an AI education initiative in Nigeria. California Governor Newsom vetoed a broad AI safety bill but signed other regulations aimed at deepfakes and training data transparency.

• JioGenNext Announces The Next Set of Startups ? JioGenNext, the startup accelerator by Jio, has announced the latest group of startups joining its Market Access Program (MAP). These startups focus on digital AI innovation and include Anuvadini AI, BingeClip AI, Floworks, GenStaq.ai , GenVR Research, IntelloSync, Phot.AI , Tranzmeo, Tvasta, and Unscript. This initiative aims to boost AI-driven solutions by providing startups with market access and support.?

There is a clear trend of large corporations, like Jio, launching or expanding startup accelerator programs focused on AI innovation. Accelerators such as JioGenNext are increasingly prioritizing startups that leverage AI across various sectors, including healthcare, digital content, virtual reality, and enterprise solutions. This trend reflects a broader movement in the industry where established companies seek to foster AI-driven innovation by supporting smaller, more agile startups through mentorship, market access, and sometimes funding.

A key element of this trend is the diversity of AI applications these startups bring, from natural language processing (Anuvadini AI) to workflow automation (Floworks). Established tech companies, particularly in the telecom and digital sectors, are creating these programs to stay at the forefront of AI development without having to build these technologies in-house. Instead of focusing solely on funding, these accelerators emphasize providing market access and partnerships, which are crucial for scaling innovative solutions. This collaborative approach highlights the growing importance of partnerships between startups and big corporations.

By nurturing these startups, corporations are building AI ecosystems that align innovations with their business needs while ensuring that AI startups can thrive. As AI becomes more integral to various industries, this trend of using accelerators as a fast-track for innovation is expected to grow.

• Generative AI Healthcare Company Settles with Texas AG over Product Safety and Accuracy Concerns | Cozen O'Connor - JDSupra ? Pieces Technologies, a healthcare AI company, settled with Texas Attorney General Ken Paxton over claims of deceptive marketing practices related to the safety and accuracy of its generative AI products. The company allegedly misled hospitals by stating that its error rate was below 1 in 100,000, violating Texas's Deceptive Trade Practices Act. As part of the settlement, Pieces must now disclose any known risks of error and clarify how its metrics are calculated. The settlement does not include any financial penalties but requires transparency in future marketing.?

The settlement between Pieces Technologies and the Texas Attorney General signals increased scrutiny on the generative AI industry, particularly regarding product safety and accuracy claims. This case highlights the importance of transparency in AI metrics, requiring companies to clearly disclose error rates and potential risks in their marketing. It sets a precedent that regulators are likely to hold AI companies accountable for deceptive claims, especially in sensitive fields like healthcare. Moving forward, generative AI companies may need to ensure stricter compliance with advertising standards and provide more detailed explanations of their products' capabilities and limitations to avoid legal challenges.

• Duane Morris LLP - FTC Cracks Down on Allegedly Deceptive Artificial Intelligence Schemes The FTC has ramped up its enforcement efforts against deceptive uses of AI, announcing five new actions as part of "Operation AI Comply." The cases target companies across industries that either made false claims about their AI products or offered AI tools that could be misused for fraud. Notable actions include cases against DoNotPay for misleading claims about its "AI Lawyer" services and Rytr, whose AI writing assistant was allegedly used to generate false product reviews. These actions highlight the FTC's focus on ensuring AI is used responsibly, while clarifying that it does not intend to regulate AI itself without Congressional authority. The FTC’s goal is to prevent deceptive practices while allowing honest businesses to compete. Companies in sectors with widespread AI adoption, such as life sciences, should be especially vigilant as regulatory scrutiny increases.

• ?World Bank Begins Education Programme on Generative AI in Nigeria – THISDAYLIVE The World Bank has launched a pioneering generative AI education program in Edo State, Nigeria, aiming to improve educational outcomes by using AI tools like Microsoft Copilot. Between June and July 2024, 800 senior secondary students participated in after-school English classes where AI assisted with grammar and writing tasks. Teachers guided the students, acting as facilitators, while the AI adapted to individual learning needs. This initiative is part of the World Bank's broader Education for Global Development program, marking one of the first efforts to utilize free generative AI tools in education, especially in a developing country setting where such resources are most needed.??

• California Gov. Newsom vetoes AI safety bill that divided Silicon Valley : NPR California Governor Gavin Newsom vetoed SB 1047, a proposed AI safety bill that would have imposed strict regulations on AI models, including legal liability for harm and a mandatory "kill switch." Newsom acknowledged the bill's good intentions but argued that it focused too heavily on large models, neglecting smaller, potentially disruptive models. The veto drew criticism from lawmakers advocating for AI accountability, while tech giants like OpenAI opposed it, fearing it would stifle innovation. The decision reflects the ongoing debate around AI regulation and innovation.?

Yes, it can be a bit confusing. Governor Newsom did sign some AI-related bills recently, like one targeting the spread of deepfakes during elections and another protecting actors' likenesses from being replicated without consent. However, the bill he vetoed, SB 1047, was a separate and much broader measure that would have imposed stringent regulations on AI, including making tech companies liable for harms and requiring a "kill switch." So, while he's supported certain AI regulations, he felt SB 1047 was too restrictive for innovation.

• And more from California: California Passes New Generative Artificial Intelligence Law Requiring Disclosure of Training Data | Insights | Mayer Brown California's new law, signed on September 28, 2024, mandates that AI developers publicly disclose detailed information on the data used to train generative AI systems. Covering AI models released from January 1, 2022, onwards, compliance is required by January 1, 2026. Developers must detail sources, types, and modifications of datasets and note any copyrighted or personal information used. Exemptions exist for security-focused, aviation, and federal defense applications. This law aims to increase transparency in AI by tracking and reporting on training data provenance.?

California’s new AI disclosure law, while enforceable within the state, faces challenges for products developed out-of-state or internationally. California may address this by using frameworks similar to its data privacy laws, requiring any AI tools accessible to its residents to comply with disclosure standards. For out-of-state and international products, it could rely on partnerships with tech platforms or employ compliance thresholds, which could encourage companies to either adjust their offerings for California or risk penalties like fines or restricted market access.

• Here is what's illegal under California's 18 (and counting) new AI laws | TechCrunch In September 2024, California Governor Gavin Newsom signed 18 AI-related bills into law. These address a range of concerns, including AI risk analysis, deepfake regulations, training data transparency, and privacy protections. For example, SB 896 mandates risk assessments on generative AI threats, and AB 2013 requires AI providers to disclose training data by 2026. Additionally, laws were introduced to regulate AI-generated deepfakes in political advertisements and pornography.

• ?Google to invest $1 billion in Thailand to build data center and accelerate AI growth Google has announced a $1 billion investment in Thailand to build a new data center and expand its cloud infrastructure, marking the company’s first data center in the country. Located in Chonburi, this facility will support Google Cloud and AI innovations, as well as core services like Google Search and Google Maps. The investment aims to meet the growing demand for cloud services in Thailand while also unlocking new opportunities for local businesses and educators to adopt AI technologies. Thailand, which has the second-largest digital economy in Southeast Asia, is projected to reach $50 billion by 2025. Google’s move comes as it faces increasing competition from rivals like Microsoft and OpenAI in the AI and cloud computing sectors. Despite Google’s pioneering work in transformer models that underpin generative AI, tools like ChatGPT have posed a competitive threat. This investment signifies Google's commitment to strengthening its foothold in Asia and accelerating AI growth amid fierce industry competition.

Here is my take on it as I spent this week in Indonesia learning and experiencing first hand technology growth in the region. Building data centers in Southeast Asia, including Thailand, often provides lower operational costs compared to regions like North America or Europe. Land, electricity, and labor costs tend to be more affordable, making it attractive for tech giants like Google to expand infrastructure in the region. 2. Growing Digital Economy: Thailand’s digital economy is the second-largest in Southeast Asia, projected to reach $50 billion by 2025. Investing in a data center there positions Google to tap into this rapidly growing market, which will further increase demand for cloud services and AI innovations. 3. Proximity to Emerging Markets: Thailand’s location offers strategic access to key markets across Asia, especially as countries in the region continue to accelerate digital transformation. By investing in the Far East, Google can support businesses and governments across Southeast Asia that are looking to adopt cloud and AI solutions. 4. Competitive Pressure: Companies like Microsoft and OpenAI are ramping up efforts in the region as well, making it crucial for Google to establish a stronger presence to remain competitive in both cloud computing and AI services. 5. AI and Cloud Growth Potential: Asia, particularly Southeast Asia, is experiencing significant growth in AI adoption and cloud infrastructure. Google’s investment aligns with the global push towards AI integration, and Southeast Asia provides a fertile ground for this expansion due to rising demand for digital services and AI-enabled solutions.

• ??China AI Chip Leader Soars 20% Limit as Beijing Warns on Nvidia Chinese AI chipmaker Cambricon Technologies Corp. saw its stock surge by 20%, reaching its daily trading limit, after reports that Beijing is increasing pressure on domestic firms to shift away from Nvidia processors in favor of local alternatives. This push is part of China's broader strategy to reduce reliance on U.S. technology amidst growing tensions between the two countries, particularly in the high-tech sector. Cambricon, a leading player in the AI chip space, stands to benefit significantly as Beijing encourages companies to adopt homegrown solutions for AI and other critical technologies. This move highlights China’s efforts to bolster its own semiconductor industry and advance its AI capabilities in response to geopolitical and trade pressures.

• China Telecom say AI model with 1 trillion parameters trained with Chinese chips China Telecom has developed two large language models (LLMs), including a 1 trillion-parameter model, using domestically produced chips. This milestone demonstrates China's progress toward achieving AI self-sufficiency, especially amid U.S. restrictions on access to Nvidia’s advanced GPUs. The chips are believed to be supplied by Huawei, as China accelerates efforts to reduce dependence on foreign technology for AI development. Huawei's Ascend chips are key alternatives, positioning China to compete globally despite the U.S. export constraints on AI hardware.?

• One of the world's largest mobile networks will train its trillion-parameter strong LLM on Huawei's AI chips as Nvidia, AMD are sidelined | TechRadar China Telecom has developed two large language models (LLMs), one of which has 1 trillion parameters, trained on domestically produced chips. This move follows U.S. export restrictions blocking access to high-end Nvidia GPUs. Huawei likely supplied the chips, as the company positions itself as an alternative to Nvidia in China. The shift to local suppliers, including AI chip startup Cambricon, aims to ensure self-sufficiency and compliance with U.S. sanctions while continuing advancements in AI technology.?

• ?And here is an excellent report on geopolitics in AI: U.S.-China Tensions Have a Chilling Effect on Scientific Research - Knowledge at Wharton ? A new study co-authored by Wharton professor Britta Glennon reveals that escalating U.S.-China political tensions are stifling the exchange of scientific research and hindering the U.S.’s ability to attract and retain Chinese scholars. The study, “Building a Wall around Science: The Effect of U.S.-China Tensions on International Scientific Research,” examines the careers and research output of over 800,000 American and ethnically Chinese STEM graduates. Key findings include a 16% drop in the likelihood of ethnically Chinese students attending U.S. PhD programs between 2016 and 2019, and a 4% decline in those staying in the U.S. after graduation. The researchers also found a sharp decrease in Chinese citations of U.S. research, but no corresponding decline in U.S. citations of Chinese work. While the productivity of China-based researchers remains unaffected, the study shows a 2%-6% drop in the productivity of ethnically Chinese scientists in the U.S., partly attributed to heightened anti-Chinese sentiment. The researchers argue that current policies, such as the U.S. government's China Initiative, may harm scientific collaboration and innovation, which historically thrive on immigration and global partnerships. As political tensions rise, these policies could have long-term negative effects on both countries' scientific advancements.

• Biden-Harris Administration to Invest up to $100 Million to Accelerate R&D and AI Technologies for Sustainable Semiconductor Materials | U.S. Department of Commerce The Biden-Harris Administration plans to invest up to $100 million to accelerate research and development (R&D) in sustainable semiconductor materials using AI. This initiative, under CHIPS for America, aims to foster university-led collaborations to develop AI-powered experimentation for semiconductor manufacturing. The goal is to create environmentally friendly, commercially viable materials within five years, supporting the U.S. semiconductor industry’s growth. The program also seeks to expand the participation of emerging research institutions and universities in semiconductor R&D.

It does sound like an extension of existing initiatives under CHIPS for America, but the focus on AI-powered sustainable semiconductor manufacturing is a significant step. The combination of AI/AE to accelerate materials R&D and a commitment to sustainability may offer a new competitive edge for the U.S. semiconductor industry. The inclusion of emerging universities and broader collaborations could also enhance talent development in this sector, which is crucial for long-term success. It’s more about expanding the current efforts with new technologies.

• ?Time to place our bets: Europe’s AI opportunity underscores the opportunities and challenges facing Europe in the generative AI (gen AI) space. Europe lags 45-70% behind the U.S. in AI adoption and internal IT spending, particularly in sectors like healthcare, media, and software. It holds a strong position in AI semiconductor equipment but struggles in raw materials, AI semiconductor design, and manufacturing. Europe's data centers currently represent only 18% of global capacity, but demand for AI-driven infrastructure could increase electricity consumption by 5% by 2030. Strategic investments could boost productivity by 3% annually through 2030. You can sign up for the newsletter on the articles website and get them directly into your inbox :)??

News and Partnerships

Lenovo has unveiled a new lineup of AI-powered PCs aimed at enterprise customers, featuring models like the ThinkPad E14 Gen 6, ThinkBook 14 Gen 7, and the ThinkVision 27 3D monitor for creative professionals. Microsoft will re-launch its "Recall" AI screenshot tool with enhanced privacy measures, while also updating its AI assistant, Copilot, with new voice and reasoning features. IBM’s AI-enabled mainframe offers real-time insights by running AI models on the same platform where critical data is stored, reducing cloud dependence. Meta's new Movie Gen AI tool for creating multimedia content is still in its experimental phase, and PwC India has partnered with Meta to expand open-source generative AI solutions for business integration.

• Lenovo unveils AI-powered PCs for enterprise customers | Back End News ? Lenovo recently unveiled a lineup of AI-powered laptops and devices aimed at enhancing productivity for enterprise customers. Key models include the ThinkPad E14 Gen 6, designed for mobile professionals with Intel Core Ultra processors and AI-assisted productivity, and the ThinkBook 14 Gen 7, targeting hybrid workers with AI features like Lenovo Smart Meeting for improved video conferencing. The ThinkPad P14s Gen 5, Lenovo’s thinnest mobile workstation, caters to professionals in high-performance fields like architecture and engineering with NVIDIA RTX 500 graphics.For secure enterprise computing, Lenovo introduced the ThinkCentre M70s Gen 5, a desktop featuring AI-accelerated multitasking and robust security through the ThinkShield suite. Additionally, the ThinkVision 27 3D monitor, arriving in November 2024, offers a glasses-free 3D experience, combining real-time eye-tracking with 2D and 3D compatibility, ideal for content creators and professionals in design and entertainment.

Lenovo's new AI-powered laptops are more in the category of catching up rather than groundbreaking, although they offer competitive features. Many of the AI capabilities integrated into Lenovo's latest devices, such as noise cancellation, video enhancement, and AI-assisted productivity, are becoming standard across high-end business laptops. Competitors like Dell and HP already offer AI-enhanced models with similar functionalities, such as AI-powered security, power optimization, and intelligent meeting tools. For instance, Dell’s Latitude series and HP’s EliteBooks both feature AI-driven noise cancellation, background adjustments for video calls, and AI-based battery management systems, aimed at improving user experiences for hybrid and mobile workers. Lenovo’s focus on security with ThinkShield and AI-boosted workflows does make them highly suitable for enterprises needing robust solutions, but they are not necessarily ahead of the competition in terms of innovation. The ThinkVision 27 3D monitor, however, stands out as a more unique offering with its glasses-free 3D experience. This feature could position Lenovo as more innovative in the 3D display market, but for the laptops themselves, it appears Lenovo is aiming to remain competitive rather than revolutionary.

• Microsoft to re-launch ‘privacy nightmare’ AI screenshot tool ? Initially introduced in May 2024, Recall was designed to use AI to take regular screenshots of user activity, allowing them to search through files, emails, and browsing history. However, critics quickly raised privacy concerns, labeling it a "privacy nightmare" due to the vast amount of sensitive data it would collect. As a result, Microsoft postponed the launch and made significant changes to address these concerns. The revised version will be opt-in, rather than turned on by default, and includes additional security measures such as encrypted snapshots and biometric login for access. Microsoft has assured users that sensitive data, like credit card details, will not be captured by default, and only CoPilot+ laptops, featuring powerful AI chips, will support the tool. Despite the changes, privacy watchdogs like the UK Information Commissioner's Office (ICO) continue to monitor the tool’s rollout. While some experts believe the improvements are significant, others, like cybersecurity expert Alan Woodward, remain cautious, advising against opting in until the tool has been extensively tested in real-world scenarios.

• Microsoft revamps AI Copilot with new voice, reasoning capabilities | Reuters Microsoft has updated its AI assistant, Copilot, adding a more conversational voice and reasoning capabilities. The chatbot now offers verbal cues and can analyze web pages for users browsing in Microsoft Edge. Developed by Microsoft's AI division and leveraging OpenAI’s technology, Copilot is aimed at enhancing user experience. A "Think Deeper" feature allows Pro subscribers ($20/month) to receive insights on decisions, while a "Copilot Vision" feature lets users interact with content they view.?

By introducing features like voice interactivity, reasoning capabilities with "Think Deeper," and browsing-based assistance with "Copilot Vision," Microsoft aims to provide a more personalized and interactive experience for consumers. While OpenAI’s models, such as ChatGPT, are well-established, Microsoft is positioning Copilot to compete by focusing on enhanced user engagement and decision-making support, rather than just following in OpenAI’s footsteps. What do you think?

• And more Microsoft (Windows in this case) news: AI Search Takes Over Microsoft Windows These updates include AI-powered natural language search across File Explorer and apps, as well as “Click to Do,” which allows instant interactions with content like images and text. Additionally, the new Recall tool will help users track information across devices. These features aim to streamline digital tasks, positioning Windows as a leading AI-powered platform in personal computing.??

• To coud or not to cloud? AI on the mainframe? IBM may be onto something | CIO ? IBM’s AI-enabled mainframe setup allows enterprises to run advanced AI models, such as LLMs, on the same platform where their critical data is stored, reducing the need for cloud transfers. This approach enhances data security, minimizes latency, and can significantly lower costs associated with GPU-based cloud AI. By incorporating AI directly into the mainframe, IBM helps organizations leverage real-time insights without risking data governance. The design is particularly beneficial for industries with high data sensitivity, like finance, healthcare, and government sectors.

• If you are a Gemini user, did you know that Google just quietly upgraded Gemini Advanced customers to a better version of its AI | TechRadar Google has quietly upgraded Gemini Advanced subscribers to version 1.5 Pro-002, improving the model's speed and math skills, making it more effective at handling complex, multi-step tasks. This upgrade is exclusive to paying subscribers and reflects Google’s broader strategy to offer tiered AI options, including the recently expanded Gemini Live for free on Android devices. As AI competition rises with offerings from Microsoft and ChatGPT, Google has to stay competitive.?

Quiet rollouts allow testing, performance monitoring, and user feedback to ensure the feature's stability and effectiveness, especially in a competitive landscape where incremental improvements in speed and functionality are increasingly valuable.?

• ?No one can actually use Meta's newest AI tool, Movie Gen Meta recently introduced "Movie Gen," a generative AI tool that creates videos, audio, and images from text inputs. It's designed to assist users in editing and generating creative content, drawing on licensed and publicly available data. While similar to OpenAI's Sora, Movie Gen integrates multiple AI modalities Meta has developed, expanding its potential for creative applications. However, the tool is not yet available for public use, as it remains in the experimental phase due to high generation costs and long processing times.

• PwC India Collaborates With Meta To Expand Open-Source Gen AI Solutions PwC India has partnered with Meta to enhance the development and adoption of open-source generative AI solutions. This collaboration aims to help organizations integrate generative AI into business processes, with a focus on customization and scaling. Meta will contribute its AI research and open-source tools, while PwC India will provide expertise in business implementation and strategy, making generative AI more accessible to companies across various sectors. This partnership aligns with the growing demand for AI-driven innovation in the Indian market.??

Gen AI for Business Trends, Concerns, and Predictions:?

MIT Sloan discusses the limited potential of open-source models like Meta's Llama in dissolving dominant firms' power due to key assets remaining under corporate control. ZDNET emphasizes building strong data foundations for AI by focusing on collaboration and cloud systems. CNET offers a guide on creating AI-generated images, while Hour One's Oded Granot highlights how GenAI reduces content creation costs. AI bots now surpass CAPTCHAs, and a report shows parents' unawareness of teens' AI usage. AI's future could lead to over-investment or a market crash, while edge infrastructure for AI gains attention. AI honesty and the need for worker training raise concerns, and OpenAI faces scrutiny over training data copyright issues.

• Openness, control, and competition in the generative AI marketplace | MIT Sloan ? ? While open-source models like Meta's Llama have stirred optimism, the researchers argue that openness alone will not dissolve the power of dominant firms. Critical complementary assets such as model inference hardware, safety protocols, and access to nonpublic training data will likely remain under the control of large corporations, limiting new entrants' ability to compete independently. The generative AI sector may evolve into a platform-driven market, where a few firms control foundational models, while third-party developers customize applications for various use cases. This mirrors the mobile operating system market, where Apple and Google hold sway. The authors raise concerns about such concentration of power but stop short of advocating for strong government interventions. Instead, they recommend a "watchful waiting" approach by policymakers, allowing the industry to evolve before considering major regulatory actions.Agree or disagree?

• 3 ways to build strong data foundations for AI implementation, according to business leaders | ZDNET To implement AI effectively, business leaders emphasize the importance of building strong data foundations. Claire Thompson from L&G advises that organizations should prioritize people and collaboration between data and IT teams to ensure data quality and governance. This helps prevent future issues and supports personalized customer experiences. Jon Grainger from DWF focuses on mastering transactional data and using cloud-based systems with APIs to maintain accuracy and reliability, which is crucial for future AI use. Nic Granger from the North Sea Transition Authority advocates for collaboration across industries to improve data standards and interoperability, making it easier to harness AI technologies.

• How to Create AI Images: A Complete Guide With Expert Advice - CNET Generative AI allows users to create images from text prompts using AI models trained on vast databases. To create AI-generated images, choose the right tool based on your needs, such as DALL·E 3 for complex prompts, Leonardo AI for artistic flexibility, or Canva for simplicity. Writing detailed, descriptive prompts and using built-in editing features are key to achieving quality results. Legal and ethical considerations, like proper attribution and understanding copyright issues, are important. Staying updated on AI developments ensures responsible and effective use in creative projects.?

• "GenAI can do in seconds what a Hollywood studio does at enormous costs" | Ctech Oded Granot, head of visual effects at Hour One, explained at Calcalist's AI conference that generative AI (GenAI) can perform tasks in seconds that traditionally require massive resources and time in Hollywood. GenAI significantly reduces the complexity and cost of creating animated content, but it faces challenges like consistency and control. As the technology advances, it could revolutionize media and content production with AI-generated avatars and real-time video, raising important questions about ownership, authenticity, and the ethical use of AI-generated content.

• AI bots now beat 100% of those traffic-image CAPTCHAs | Ars Technica New research shows that AI bots can now defeat image-based CAPTCHA tests with a 100% success rate, using advanced image-recognition models like YOLO. These bots mimic human behavior by using mouse movement models, VPNs, and real browsing data to avoid detection. This breakthrough indicates that traditional CAPTCHA systems are becoming less effective in distinguishing bots from humans. As AI continues to advance, companies like Google are shifting toward invisible methods, such as device fingerprinting, to improve security.?

• Parents, educators are unaware how their students use generative AI, report finds - Marketplace ? A recent report by Common Sense Media highlights that 70% of U.S. teenagers (ages 13-18) use generative AI for both schoolwork and leisure. However, parents and educators are largely unaware of the extent of this usage, with over 80% of parents reporting no communication from schools about AI. The report also found significant disparities in perceptions of AI between different racial groups, with African American parents more optimistic about AI's educational benefits, though Black teens are disproportionately flagged for AI-related academic concerns. Jim Steyer, founder of Common Sense Media, emphasizes the need for AI literacy programs for both teachers and parents to address these gaps and ensure that students use AI responsibly and effectively.?

Yes, it’s disheartening to see how early-stage biases in AI systems can disproportionately affect African American students, especially when their work is unfairly flagged as AI-generated. It underscores the importance of addressing these biases in AI tools, along with the need for educators and parents to become more AI-literate. Addressing AI bias in education, especially its disproportionate impact on African American students, requires a multifaceted approach. First, AI literacy programs for both educators and parents are crucial. When adults understand how AI works, they can critically evaluate its outputs and support students in navigating its flaws. Additionally, developers need to focus on creating more inclusive AI systems by using diverse and representative data sets during development. Schools should implement policies that guide the fair use of AI tools, particularly in evaluating student work, to prevent over-reliance on potentially biased AI-generated results. Regular audits of these systems can help identify and mitigate bias, while feedback loops should be in place so students can contest unfair AI-based decisions. Collaboration between schools and AI developers can also improve the fairness of these tools, ensuring that student feedback informs their evolution.? Audits and regulations are still not widespread, and many schools lack formal policies around AI. The conversation is evolving, but tangible solutions are still in the early stages of implementation. Remember when 5 years ago some facial recognition tools were shut down as African American politicians were identified as criminals (I will post my article from 5 years ago in the comments)??

?This incident prompted companies like IBM, Amazon, and Microsoft to halt or reevaluate their facial recognition programs, acknowledging the potential for racial bias in these technologies. The public outcry also pushed for more stringent regulations and further scrutiny of AI tools.

While it sparked important discussions about AI ethics and bias, the same underlying issues persist today in other forms of AI, like generative tools in education. These biases, deeply rooted in the data used to train AI models, highlight the urgent need for transparency, diverse representation in training datasets, and the development of equitable AI systems. It's a reminder that without careful oversight, AI can inadvertently reinforce systemic biases, making it crucial to address these flaws as we integrate more AI into daily life.

• AI awareness: Half of Gen Z and Millennials only recognise AI ‘occasionally’ - IFA Magazine A recent study by Sopro reveals that while most younger individuals (16-29) are familiar with artificial intelligence (AI), with 93% having heard of it and 78% able to explain it, nearly half (49%) of this group only occasionally recognize when they’re actually using AI. This highlights a significant gap in awareness, which may affect their understanding of AI’s impact and their willingness to engage with it knowingly. In comparison, only 31% of those aged 16-29 say they can often or always identify AI, with awareness levels dropping significantly for older generations. The survey also uncovered broader public concerns about AI, including the misuse of personal data (72%) and difficulty distinguishing fake news (68%). Additionally, 69% of respondents believe employers should consult their workforce before introducing AI technologies.

• ?AI Can Only Do 5% of Jobs, Says MIT Economist Who Fears Crash Daron Acemoglu envisions three possible outcomes for AI's future: First, a cooling down of the hype, leading to more reasonable AI investments in practical applications. Second, a tech stock crash resulting from an extended AI frenzy, leaving investors disillusioned. Third, companies could over-invest in AI, cut jobs, and later struggle to rehire when they realize AI can't replace human workers. He believes a combination of the second and third scenarios is most likely, with a significant economic impact.

While AI can't replace every job or task, I think its real potential lies in enhancing human capabilities rather than fully automating them. AI can streamline tasks, boost productivity, and even assist in complex decision-making, but I agree it's not a one-size-fits-all solution. The key is balance—using AI where it truly adds value while maintaining human oversight for areas that require judgment, creativity, or personal touch. Acemoglu’s argument does seem pessimistic and lacks concrete data to support the 5% job impact claim. AI is already showing tangible benefits across industries like healthcare, finance, and tech, so the prediction that it will only affect a small percentage of jobs may overlook the wider potential of AI to transform tasks rather than entire roles.?

And here is WHY: The predictions around AI today mirror the early skepticism around the Internet. Many believed it would destroy industries and jobs, but instead, it transformed and created entirely new sectors. Like the Internet, AI is unlikely to wipe out vast numbers of jobs but rather enhance productivity, streamline processes, and enable new opportunities. Just as the Internet became integral to daily life, AI will likely weave into the fabric of industries, with its full potential only becoming clearer over time.

• ?A few enterprise takeaways from the AI hardware and edge AI summit 2024 - DataScienceCentral.com TLDR: Centralized data center processing for generative AI is inefficient, with significant demand for improved edge infrastructure. Smaller language models (SLMs) offer benefits like faster inference and greater efficiency compared to large language models (LLMs). Governance, data quality, and organizational change management remain critical for successful AI adoption. Innovations in edge AI, such as Brainchip's linear modeling, promise efficiency gains, contrasting with the resource-heavy transformer models used in large-scale LLMs.?

• https://arxiv.org/abs/2409.18786v1 This survey explores the concept of honesty in large language models (LLMs), emphasizing the importance of aligning models with human values by ensuring they accurately convey what they know and don't know. It examines dishonest behaviors like confidently giving incorrect answers and highlights challenges in defining and evaluating honesty. The paper offers strategies for improving model transparency and suggests future research directions to refine LLMs' ability to reliably express their knowledge.?

• Many office workers say they still haven't been trained on Gen AI | TechRadar Ivanti’s report indicates that while 75% of office workers now use generative AI (GenAI), 81% haven't received formal training, leading many to rely on unapproved tools that could compromise security. Poor digital employee experience (DEX) is a key driver, with 86% of IT professionals noting how inadequate DEX leads workers to risky shortcuts, like using personal devices. Ivanti emphasizes aligning security protocols with user-friendly DEX to encourage safe and productive work environments, advocating for robust digital hygiene practices like VPNs and multi-factor authentication. Employees face a tricky balance: they’re pushed to use AI to improve productivity but lack the support to do it securely. This "rock and hard place" scenario creates a digital employee experience (DEX) gap, leaving workers to navigate complex security and productivity needs alone. Without proper AI training, many turn to unsanctioned tools, which may lead to unintended security breaches, potentially compromising both personal and company data.?

• Bring Your Own AI: How to Balance Risks and Innovation emphasizes that banning generative AI (GenAI) tools in the workplace isn't practical. Instead, leaders should set guidelines to allow employees to experiment while mitigating risks like data loss and intellectual property breaches. Strategies include building specific guidance, developing training, and sanctioning a limited number of trusted tools. This approach not only safeguards the organization but also fosters innovation and productivity by empowering employees to explore and creatively solve problems using GenAI.?

• OpenAI Training Data to Be Inspected in Authors’ Copyright Cases In a lawsuit by authors like Sarah Silverman, OpenAI has agreed to allow inspection of its training data to see if copyrighted works were used without consent. The inspection will take place in a secure, tech-restricted room at OpenAI’s office, with strict protocols to protect the data. The case could shape future legal guidelines for AI-generated content and copyright infringement. OpenAI claims fair use, but authors argue their works were used improperly to train AI.

News and updates around? finance, Cost and Investments

Accenture reports $3 billion in GenAI bookings for fiscal 2024, highlighting AI’s potential to drive growth, with plans to reach 80,000 AI professionals by 2026. OpenAI has raised $6.6 billion, but faces rising costs and Apple’s departure as a backer. Salesforce Ventures doubles its AI fund to $1 billion. A Bank of America survey predicts AI will boost corporate profits by $55 billion in five years. Microsoft commits over $100 billion to AI data centers. Anthropic explores new funding with a potential valuation of $40 billion as AI continues to transform industries globally.

• ICYMI: Accenture CEO: GenAI Has The Potential To Be A ‘Catalyst Of Reinvention’ ? Accenture reported $3 billion in new GenAI bookings for fiscal 2024, including $1 billion in the fourth quarter alone. Sweet highlighted that AI is not just a technology but a new way of working, with its full value dependent on strategies that drive both productivity and growth across enterprises. The company has bolstered its AI workforce, with plans to reach 80,000 AI professionals by fiscal 2026, and invested significantly in employee training, with 44 million training hours in 2024, mostly focused on GenAI. Accenture has seen substantial growth, with 33 customers booking more than $100 million in Q4, leading to full-year bookings of $81 billion, a 14% increase year-over-year. The company has leveraged GenAI to assist clients in large-scale digital transformations, with key projects including TIAA’s retirement record-keeping transformation and QBE Insurance’s AI-powered underwriting solutions.

• Apple out as OpenAI's costs soar | LinkedIn “OpenAI is set to close its latest funding round in coming days, but Apple is no longer on the list of potential backers , The Wall Street Journal reports , citing an anonymous source. Yet even with the loss of the prominent investor, the round could see OpenAI raise up to $6.5 billion — capital it sorely needs as its burn rate accelerates. Per financial documents viewed by The New York Times , OpenAI expects to record a loss of about $5 billion in 2024, driven by the surging cost of salaries, rent and computing power, its largest expense.” I am curating this section as I am waiting in the Dallas airport on Sunday, September 29 for my connection to Narita and then off to Indonesia. I know there will be more developments, I will curate more as they unfold. The drama continues. I wonder why it does not affect any other model companies. I understand the big tech, they have unlimited pockets, and maybe the other startups like Mistral learned from OpenAI mistakes as they were the first to market … Yup, your ChatGPT fees are going up, by how much is the question. WIll you stick with ChatGPT if the fees are hiked, and if you switch, what platform are you switching to? ANd here are rumors on how much potentially the price might get hiked: r/ChatGPT - Wow Are you willing to pay $44 per month???

• Here goes nothing! https://www.dhirubhai.net/news/story/openai-valuation-reaches-157b-6340729/ “OpenAI has raised $6.6 billion in its latest funding round, "the largest venture capital deal of all time," according to Axios . The newly completed round, led by Thrive Capital, pushes the company's valuation to $157 billion — nearly double what it was just nine months ago — and vaults OpenAI alongside leading venture-backed startups SpaceX and TikTok.” Microsoft is in, and Apple (see above) is out. OpenAI's rapid revenue growth has surged to $300M per month, marking a 1,700% increase since 2023. The company now has over 10M paying subscribers and 1M businesses using ChatGPT, with future projections aiming for $11.6B next year and a $100B target by 2029. Despite having a technical lead with GPT-o1, including "Chain of Thought" capabilities, challenges include competition from open-source models, tech giants like Google and Meta (with very deep pockets) integrating AI, and potential data scarcity that could hinder future model advancements. Additional stats on OpenAI: Thrive Capital led OpenAI's recent funding round, with Microsoft and Nvidia also participating. Interestingly enough, the funders agreed not to back OpenAI’s key rivals, such as Anthropic and xAI. OpenAI's workforce has grown significantly, increasing from 700 employees at the start of 2024 to about 1,700 and only 6% of the employees left for other companies. OpenAI operates as a hybrid structure with both a nonprofit arm (OpenAI Inc.) and a for-profit subsidiary (OpenAI LP). While Sam Altman himself doesn't take equity (yet), OpenAI does offer stock options to its employees as part of the for-profit subsidiary to attract talent. This allows employees to benefit financially from the company's success while still pursuing its overarching goal of advancing AI safely for societal benefit. So, employees are both incentivized financially and driven by their passion for AI innovation.

• There is about 31 mentions of OpenAI in this newsletter, so how about one more? Altman reportedly asks Biden to back a slew of multi-gigawatt-scale AI datacenters ? OpenAI CEO Sam Altman is reportedly pushing the Biden administration to support the construction of multi-gigawatt-scale AI datacenters, citing their importance for national security and technological competition with China. These facilities would each require up to 5 gigawatts of power—equivalent to multiple nuclear reactors. Despite challenges in power availability and hardware sourcing, Altman's plan reflects the growing demand for AI infrastructure. However, it's unclear if this initiative (if it exists) will progress or is meant to provoke discussions on long-term AI investments.

• Salesforce Ventures ups its AI fund to $1B, doubling it again | TechCrunch At its Dreamforce conference in San Francisco, Salesforce Ventures announced a new $500 million fund dedicated to AI companies, bringing its total AI investment fund to $1 billion. This expansion is notable as Salesforce Ventures had already doubled its AI fund to $500 million in 2023. The additional investment emphasizes San Francisco’s growing prominence as a hub for AI startups, with companies like Anthropic, Hugging Face, Runway, and Together AI already in its portfolio. The firm continues to foster connections between its AI startups and Fortune 500 executives, fueling further innovation and collaboration in the AI space.

Wondering how your startup can tap into Salesforce Ventures' AI funding? First, make sure your AI product solves a real problem and has the potential to scale. Salesforce Ventures looks for innovative solutions that can fit within or expand the Salesforce ecosystem, so it’s important to show how your technology can create value for their customers. Building relationships is key—attend events like Dreamforce and network with other founders, mentors, and Salesforce Ventures team members. You can also apply directly through their website by submitting a pitch deck that highlights your business potential and growth strategy. If you have any connections in the Salesforce network, a referral can also boost your chances. In short, a solid product, clear business plan, and strategic networking can help you get noticed by this AI-focused fund. ANd then you will need to pitch :)?

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• Bank of America survey predicts massive AI lift to corporate profits | ZDNET ? Conducted with 130 stock analysts covering over 3,400 companies, the survey found that enterprise AI implementations are moving from pilot projects to full-scale production, with the potential to increase S&P operating margins by 200 basis points over the next five years. This increase would translate to approximately $55 billion in annual cost savings. Software firms are predicted to benefit the most from Gen AI, with an estimated 5.2% product margin expansion, followed by sectors like semiconductors and energy. In contrast, human capital-driven industries such as healthcare services may see a deterioration in profit margins. The report highlights examples of AI-driven cost savings, such as utilities reducing pole inspection costs by 75% with AI-powered smart cameras, and e-commerce companies cutting customer service staff by leveraging AI chatbots, saving millions in operational expenses. However, the report also acknowledges that widespread benefits will take time to materialize. Significant infrastructure investments are required to build and scale Gen AI solutions, and current applications are still largely in their early stages. While the long-term potential for cost savings and revenue generation is high, skepticism remains until clearer evidence of widespread profitability emerges.

• Microsoft's mammoth AI bet will lead to over $100 billion in data center leases Microsoft’s finance leases for AI-driven data centers have reached $108.4 billion, nearly $100 billion higher over the last two years. These leases, set between 2025 and 2030, will support AI workloads but will likely impact margins. Microsoft has invested $19 billion in capital expenditures in Q2 2024, including data centers in regions like the U.S. and Indonesia, where it has committed $1.7 billion to cloud and AI infrastructure. Partnerships with CoreWeave and Oracle are helping meet growing AI demands. Despite the cost pressures, these investments are key to Microsoft’s AI expansion. I was in Indonesia this week, visiting Tel-U and they are preparing the workforce to support these efforts! I really enjoyed my visit with the faculty and students.?

• October 2024 Fintech Newsletter: Fintech isn’t dead. AI is driving a new beginning | Andreessen Horowitz Over the past 20 years, fintech has evolved across product cycles. In the AI era, financial institutions can automate white-collar roles, with some banks having up to 30,000 compliance officers. Companies like Vesta and Valon are transforming mortgage processes, and AI's ability to deliver 10x better results is leading to significant revenue opportunities. Fintech disruptors with innovative models, like Nubank and Chime, achieve high ROEs and attract premium valuations. The financial services industry holds over $5 trillion in gross profit potential. You can subscribe to this newsletter to get it directly to your Inbox.?

• ICYMI (cause there is no drama): Anthropic reportedly in early talks to raise new funding on up to $40B valuation - SiliconANGLE Anthropic, an AI company focused on safe and ethical AI models, is reportedly exploring new funding with a potential valuation of up to $40 billion. The company’s current primary investor, Amazon, might participate again as their partnership grows, including integrating Anthropic's AI on Amazon's Bedrock and possibly Alexa. Founded by former OpenAI execs, Anthropic has previously raised about $7.6 billion from investors, including Google, Microsoft, and Salesforce Ventures, making it a significant player alongside OpenAI in generative AI development.?

What/where/how Gen AI solutions are being implemented today?

The U.S. Department of Health and Human Services (HHS) is funding a project, TARGET, to accelerate the discovery of antimicrobial-resistant antibiotics using Generative AI, with a $27 million budget. Social workers in England are using the Magic Notes AI tool to streamline tasks like generating summaries, while ADP leverages GenAI for payroll and workforce solutions. California police departments are adopting AI for report writing, and Accenture plans to train 30,000 employees on Nvidia AI technologies. Additionally, UT's CosmicAI Institute will use AI to explore the universe's origins.

• Generative AI being used to develop antimicrobial resistant antibiotics | Healthcare Finance News The U.S. Department of Health and Human Services (HHS) is funding a project to accelerate the discovery of antibiotics using Generative AI. The initiative, called TARGET, will use AI to identify new antibiotic candidates, addressing the urgent threat of antimicrobial resistance (AMR), which causes over 35,000 deaths annually in the U.S. TARGET, led by Phare Bio and MIT's Collins Lab, has a budget of up to $27 million and aims to identify 15 promising leads. The use of AI will streamline the development of antibiotics, which is critical as conventional methods are slow and costly.

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• Social workers in England begin using AI system to assist their work ? Hundreds of social workers in England have begun using the Magic Notes AI tool, which records face-to-face meetings, generates summaries, and suggests follow-up actions like drafting letters to GPs. The tool is currently being used by councils in Swindon, Barnet, and Kingston, with more councils piloting it. By reducing the time spent on administrative tasks, Magic Notes has the potential to save up to ￡2 billion annually, according to Beam, the company behind the tool. While the British Association of Social Workers supports AI tools that free up time for direct interaction, they emphasize that AI should never replace human decision-making. Concerns about the accuracy of AI-generated summaries have been raised, but human social workers must still approve final actions. As vacancies in the sector rise, tools like Magic Notes are being seen as "gamechangers" by some councils, especially for social workers with dyslexia (!!!). However, the use of AI in social work will continue to be scrutinized for its ethical implications and effectiveness in critical decision-making.

• Empowering Human Capital Management: How ADP Leverages Generative AI for Enhanced Payroll and Workforce Solutions ? hrough ADP Assist, AI helps streamline workflows, automate processes with natural language interfaces, and provide actionable insights for HR teams. With access to the industry’s largest HCM dataset, ADP leverages AI to identify irregularities in payroll, performance, and workforce management, allowing organizations to make informed decisions while reducing errors. ADP emphasizes transparency, ethics, and security in its AI systems, with dedicated governance models and compliance with AI risk management frameworks. The company's attrition prediction model also supports talent management by forecasting employee turnover and suggesting replacement candidates. ADP’s AI-driven innovations extend to improving tax and payroll systems in India, offering tax-saving recommendations and spotting abnormalities in submissions. ADP’s approach is unique due to its extensive data resources and focus on creating purpose-driven, secure, and human-centered AI solutions.

• How artificial intelligence is changing the reports US police write California police departments, including East Palo Alto, are adopting AI-based tools like Axon's Draft One to assist in drafting reports, addressing staff shortages and reducing documentation time. Campbell Police reported saving 50 hours in a month, while Colorado’s Fort Collins saw report times cut from 23 to 8 minutes. A University of South Carolina study, however, found no time savings and raised concerns about accuracy and potential bias in AI-generated reports, underscoring the need for rigorous officer review before submission.?

• Accenture To Train 30,000 Staff On Nvidia AI Tech In Blockbuster Deal Accenture will train 30,000 employees on Nvidia AI technologies and launch an Nvidia-focused business group, aiming to boost enterprise adoption of "agentic AI systems." These systems, enabled by Nvidia’s software platforms, operate autonomously and can streamline workflows, reducing task time and costs significantly. Accenture will use Nvidia AI tech in areas like marketing, where agentic systems cut manual steps by 25-35%, and at Eclipse Automation, where simulation speeds up by 50%. Nvidia's broader goal is to deepen its partnerships with global integrators, positioning its AI solutions for enterprise growth.?

• ?Lots of industries are embracing AI, just not all at the same pace - Techzine Global Databricks’ State of Data + AI Report 2024 highlights diverse AI adoption patterns across sectors, with retail leading in AI deployment due to competitive and consumer demands, achieving 25% model usage. The financial sector focuses on rigorous model testing, averaging 29 tests per model to meet compliance, while healthcare heavily relies on NLP for research. Manufacturing is swiftly advancing AI use, especially in supply chain and quality control. Databricks emphasizes that embracing AI and data intelligence is pivotal for a competitive edge across industries.?

• ?New CosmicAI Institute will use artificial intelligence to research origins of universe – The Daily Texan The new CosmicAI Institute at UT is set to use artificial intelligence in exploring the universe's mysteries, focusing on dark matter and the origins of life. With $20 million in funding, the institute will create innovative AI tools for handling vast data in astronomy. Led by a dynamic, interdisciplinary team, CosmicAI will also offer students opportunities in coding and data science, with plans to share their AI tools publicly in two to three years.???

Women Leading in AI?

New Podcast:? Join us as we dive into “Understanding AI, ML, and LLMs ” with Jigyasa Grover. You’ll get a technical perspective on the hottest topics in AI.?

Featured AI Leader: ??Women And AI’s Featured Leader - Mubeena Liju ??She shares her work in Ai and an amazing list of AI leaders to follow.

Learning Center

GitHub's "Introduction to GitHub" guide covers foundational aspects like repositories, commits, pull requests, and branching to help users understand GitHub's workflow, vital for AI collaboration. The article on agents in AI by SiliconANGLE explores the transition from large language models (LLMs) to smaller, secure language models (SLMs) that optimize multi-agent systems. Hugging Face's guide shows how to fine-tune multimodal models, and OpenAI's DevDay 2024 introduced new tools, including a Realtime API for faster multimodal interactions and Model Distillation for resource efficiency.

• GitHub - skills/introduction-to-github: Get started using GitHub in less than an hour. The Introduction to GitHub page provides a foundational guide for users to learn the key aspects of GitHub, a widely-used platform for version control and collaboration on software projects. It covers essential concepts such as repositories (where project files are stored), commits (saving changes to the repository), pull requests (proposing and reviewing changes), and branching (creating independent copies of a project for development). The page offers practical exercises for users to apply these concepts and develop familiarity with GitHub’s workflow. This knowledge is highly relevant to the AI community, as many AI tools, frameworks, and research projects are hosted on GitHub. AI development, especially in open-source environments, thrives on collaboration, and GitHub enables global teams to work together on machine learning models, frameworks, and innovative tools. With AI’s iterative nature, GitHub’s version control is crucial for tracking changes, comparing model versions, and maintaining reproducibility in experiments. Additionally, GitHub is a popular platform for sharing AI research, pre-trained models, and datasets, allowing developers to build upon others’ work, accelerating AI advancements. GitHub also supports automation through continuous integration and deployment (CI/CD), which is essential for testing and deploying AI models efficiently. For AI professionals, understanding GitHub is key to improving collaboration, transparency, and the overall workflow in AI development.

• Everything you wanted to know with some good diagrams: From LLMs to SLMs to SAMs, how agents are redefining AI - SiliconANGLE outlines a shift in AI value creation from large language models (LLMs) to small, specialized, secure language models (SLMs). These SLMs, alongside a data harmonization layer, enable multi-agent systems that work collaboratively toward business goals. Meta's open-source LLaMA leads in adoption, as enterprises increasingly invest in AI and ML, with challenges in scaling production. ROI expectations for AI are extending, with payback timelines becoming more realistic. The open-source movement and customized AI systems are driving future innovation, reshaping the software industry.?

• How to Fine-Tune Multimodal Models or VLMs with Hugging Face TRL details the process of fine-tuning open Vision-Language Models (VLMs), such as Meta AI's Llama-3.2-11B-Vision and Allen AI's Molmo-7B-D-0924, using Hugging Face’s TRL library. It walks through setting up the development environment, creating a dataset, and fine-tuning the model. The example provided focuses on generating Amazon product descriptions from images and metadata, showcasing how models like Qwen2-VL-7B can be efficiently trained on consumer-grade GPUs. Techniques like QLoRA are highlighted for reducing memory usage without sacrificing performance.??

• OpenAI DevDay 2024 was held on Tuesday. Here is a great roundup for you: OpenAI's DevDay 2024: 4 major updates that will make AI more accessible and affordable | VentureBeat At DevDay 2024, OpenAI introduced four key updates focused on expanding AI accessibility for developers: Prompt Caching, Vision Fine-Tuning, Realtime API, and Model Distillation. Prompt Caching enables budget-friendly reuse of frequently queried prompts, and Vision Fine-Tuning enhances GPT-4o's image comprehension for diverse industry applications. The Realtime API supports low-latency, multimodal experiences like voice-to-voice interaction, while Model Distillation allows for creating resource-efficient models by training smaller models on advanced outputs. This shift underscores OpenAI’s intent to build a sustainable, developer-centric AI ecosystem. The biggest announcement of the day? Here it is: Introducing the Realtime API | OpenAI OpenAI's Realtime API enables developers to build responsive multimodal applications by allowing near-instantaneous processing for text, voice, and visual inputs. It’s designed for creating low-latency, interactive applications like real-time chat, virtual assistants, and more. The API streamlines building multimodal interactions, enhancing user experiences in various fields from customer service to accessibility tools. OpenAI's Realtime API is significant because it brings fast, interactive capabilities to multimodal applications. Developers can create applications that respond instantly to text, voice, and images, enhancing the user experience in areas like customer support, accessibility, and virtual assistants.?

• How Natural Language Bolsters LLM Performance in Diverse Fields ? There is a variety of NLP courses available to cater to different expertise levels. Coursera’s Natural Language Processing Specialization (paid) is ideal for intermediate learners, while Udemy’s NLP with Python (paid) targets beginners. Stanford offers an advanced NLP with Deep Learning course (free), and Udacity’s Master NLP (paid) is comprehensive. SpaCy’s Advanced NLP (free) is self-paced for intermediate learners, while Edureka’s NLP Certification (paid) offers hands-on projects. DataCamp’s NLP Fundamentals (paid) is beginner-friendly, and Fast.ai ’s Practical Deep Learning (free) is for coders. Finally, Kaggle’s NLP course (free) covers essential NLP concepts.

• Learn how to generate realistic photos in this thread: Can anyone give me some advice on how to generate such realistic photos? : r/midjourney ??

Prompt of the week

• GenAI prompt training: is it worth it for your business? - Raconteur Organizations must train employees to use GenAI tools like ChatGPT effectively, as improper use can lead to compliance issues and subpar results. According to Cypher Learning, 57% of employees in GenAI-approved companies underutilize the technology due to insufficient training. Companies like Tech Mahindra have already trained over 45,000 employees. While some experts predict prompt engineering will fade as AI tools improve, prompt training currently helps improve productivity and secure data integrity in workflows.??

Tools and Resources

NVIDIA’s NVLM-D-72B on Hugging Face provides pre-trained weights and model configuration for tasks like vision-language understanding and text generation. MM1.5, a multimodal LLM, improves text-image reasoning with various versions tailored to video and mobile UI interpretation. Mistrilitary-7B, a military-focused model, supports complex text generation. Google’s NotebookLM generates AI podcasts from uploaded documents, and OpenAI’s Canvas enhances collaborative writing and coding. “Future You” AI allows interaction with a virtual future self, though it’s still experimental and not widely available.

• nvidia/NVLM-D-72B · Hugging Face The Hugging Face repository for NVIDIA’s NVLM-D-72B contains the model files, documentation, and configuration details needed to implement and use the model. It includes the pre-trained weights, allowing developers to fine-tune or use the model directly for tasks like vision-language tasks, text generation, and image understanding. The repository also provides information on how to use the model with example code snippets, as well as guidelines for integration into different projects.?

• [2409.20566] MM1.5: Methods, Analysis & Insights from Multimodal LLM Fine-tuning MM1.5 is a family of multimodal large language models (MLLMs) that focus on enhancing understanding of text-rich images, visual references, and multi-image reasoning. It builds on the MM1 architecture with a data-centric training approach, utilizing diverse data sources like OCR and synthetic captions for improved pre-training. The models range from 1B to 30B parameters, featuring specialized versions like MM1.5-Video for video understanding and MM1.5-UI for mobile UI interpretation, offering performance insights through extensive empirical studies.To use MM1.5, developers would typically need access to model code, APIs, or pretrained weights, which might be available via platforms like Hugging Face or other AI infrastructure providers. They would also need programming and AI expertise to fine-tune and integrate the model into their specific applications.??

• Heralax/Mistrilitary-7b · Hugging Face ? The Mistrilitary-7b model on Hugging Face, created by Heralax, is a specialized language model designed for tasks requiring complex text generation, likely targeted toward military or technical domains. Trained with advanced datasets, it aims to support nuanced and specialized outputs. To use Mistrilitary-7B, the model specialized in army field manuals, start by loading it through Hugging Face using the Transformers library or API if hosted. Use a low temperature setting, such as 0, to ensure factual and focused responses. The model is built for specific military terminology, so frame your questions in a precise, military-centric format. Because it’s a QA-focused model without generalist assistant data, it may perform best on structured or closed questions. Regularly assess outputs to confirm accuracy, especially for detailed, regulation-based questions.

• How to Generate an AI Podcast Using Google’s NotebookLM | WIRED Google's NotebookLM recently gained attention for its Audio Overviews feature, allowing users to generate AI podcasts by uploading documents. This tool mimics natural conversation, making synthesized voices sound more engaging and human-like. The AI summarizes large amounts of data, creating content similar to podcasts that explain research or technical topics. Users can upload various files, including Google Docs and YouTube transcripts, and the tool turns them into audio summaries. NotebookLM is currently free, and its AI podcasts offer a new, interactive way to consume information. Anyone used it yet for podcasting?

• ?? 50+ tools you actually need ? Here's a curated list of top AI tools across various categories (by The Neuron newsletter), offering options for professionals, developers, content creators, and more. These tools cover a range of uses such as audio editing (Play.ht , ElevenLabs), content generation (Jasper, Writer.com ), customer support (Bland AI, Chatbase), image generation (Stable Diffusion, DALLE 3), and productivity (Zapier, Notion AI). Each tool has a unique function to help streamline tasks and boost efficiency in different fields, making them valuable assets for exploring AI capabilities.

• Canvas is a new way to write and code with ChatGPT | OpenAI Canvas is a new interface by OpenAI for working on writing and coding projects using ChatGPT, enabling users to collaborate beyond simple chat. It offers features like inline feedback, editing, and shortcuts to adjust writing length, polish grammar, or debug code. Available in early beta, Canvas can be accessed by ChatGPT Plus and Team users, with plans to expand to all users soon. It’s designed for smoother collaboration, letting users highlight sections, make edits, and restore previous versions.??

• For fun: ‘Future You’ AI Allows You to Meet Your Future Self The tool appears to be an experimental AI system developed by researchers from institutions like MIT, Harvard, and others. It enables users to interact with a virtual version of their future selves but does not seem to be commercially available as an app yet. More information may emerge as the project develops.?

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