Silicon Barriers behind open source AI

??? Silicon Barriers behind open source AI

In a week that saw Meta release its most impressive open-source AI model yet, we're diving deep into the complex world of open-source AI. Mark Zuckerberg boldly compared Meta's Llama to Linux, but our analysis reveals a more nuanced reality.

Unlike Linux, open-source AI faces unique hardware challenges, creating unprecedented barriers to entry and reshaping the meaning of "openness" in tech.

As always, you're reading ConteNIDO, your go-to place for all things tech, AI, and innovation. Make sure to subscribe to receive our up-to-date analysis ??

Nido Indicators ????????

Mexico - United States Trade Balance: In March 2024, the international sales from Mexico to the United States were US$115B, while international purchases reached US$60.1B. The above results in a trade balance of US$54.9B. (???8.80% QoQ)

Auto Exports: 295,742 units in June 2024 (??3.3% YoY)

Consumer Confidence Indicator in Mexico: 47.5 in June 2024 (??1.28% MoM)

Consumer Confidence Indicator in the United States: 66.4 in July 2024 (?? 0.60% MoM)

Mexican Remittances: 14105.40 USD Million in the first quarter of 2024 (?? 13.07% QoQ)

Federal Reserve Interest rate: The Federal Reserve is expected to hold the fed funds rate steady at 5.25%-5.50% for July 2024, amid cooling inflation.

Bank of Mexico Interest rate: The Bank of Mexico held its benchmark interest rate at 11.00% in June 2024.

USD-MXN Exchange Rate: 18.7533

S&P/BMV IPC: 52,325.42 points

Inside Nido: What we are doing

Last week Melina Cruz Villafa?a from Maqui (Portco) and Renata Solana Carvajal participated in Perspectivas Cruzadas: Levantamiento de Capital

y Ciclos de Ventas en Startups B2B.

In the Know with Nido: What we are reading

?? BBVA Boosts Changan's Growth in Mexico

BBVA provides 1,600 million pesos in financing to Chinese automaker Changan, facilitating its expansion in Mexico. This initiative aims to create 18,000 credit agreements and increase Changan's sales points from 33 to 60 by year-end, highlighting the success of Chinese manufacturers in the Mexican market. (Mexico Industry )

?? Mark Zuckerberg Reveals WhatsApp Hits 100M Monthly U.S. Users

Meta CEO Mark Zuckerberg announced WhatsApp has reached 100 million monthly active users in the U.S., with over half using iPhones. The platform continues to thrive globally with over 2 billion users, bolstered by aggressive marketing in the U.S. and innovative features. (TechCrunch )

?? AI's Data Dilemma: Growing Restrictions Challenge Development

A recent MIT study reveals that AI developers face increasing restrictions on web data crucial for training models. With 5% of data and 25% of top-quality sources now limited, startups and researchers may struggle to access essential datasets. The shift towards synthetic data raises quality concerns, highlighting the urgent need for new solutions. (The New York Times )

?? Peso and BMV Plummet Amid Trump Comeback Worries

The Mexican peso and Bolsa Mexicana de Valores faced their worst week since June 2, dropping 2.5% due to fears surrounding a potential Donald Trump return. While the BMV's index rose 1.20% on Friday, it still fell 2.3% for the week. Analysts express growing investor caution regarding Trump's economic policies. (Forbes )

?? Tesla Halts Mexican Gigafactory Plans Amid Election Uncertainty

Elon Musk has paused Tesla's investment in a new Mexican assembly plant until after the U.S. presidential election, citing concerns over potential tariffs on vehicles made in Mexico. The company will instead concentrate on enhancing its existing U.S. factories. (El Universal )

?? UPS Expands Global Reach with Estafeta Acquisition

UPS has acquired Mexican logistics firm Estafeta to enhance its global logistics capabilities, pending regulatory approval. This strategic move aims to strengthen international parcel services, particularly for SMEs and manufacturers. The partnership promises improved access to the U.S. market and expanded growth opportunities in Latin America, leveraging Estafeta's extensive logistics network.(Cluster Industrial )

?? Mexico's Semiconductor Opportunity: A Two-Year Race for Investment

Mexico has a pivotal two years to join the $720 billion semiconductor industry, competing with nations like Costa Rica and Vietnam. Key states must develop talent and infrastructure, requiring $2-5 million in investments. Successful integration could yield substantial economic benefits, capitalizing on the strong Mexico-U.S. trade relationship. (Expansion )

?? Mexico's Fiber Optic Broadband Soars to Top OECD Ranking

Mexico achieved a remarkable 23.4% growth in fiber optic broadband access from December 2022 to December 2023, reaching 64.5%, outpacing the OECD average. Additionally, mobile broadband surged by 215.2% from 2013 to 2023, highlighting Mexico's rapid digital expansion. (El Economista )

?? Mexico's Energy Future at Stake: Declining Crude Supplies

As incoming President Claudia Sheinbaum grapples with a significant drop in Mexico's crude production, the nation’s energy independence is jeopardized. Aging oil fields and outdated refineries may force Mexico to rely on imports for fuel. Substantial investments in exploration and production are crucial to avoid further decline and maintain refinery capacity.(Reuters )

?? Apple Joins Tech Giants in Voluntary AI Safeguards

Apple has committed to the Biden administration's voluntary AI safeguards alongside other major tech firms. These guidelines aim to ensure AI systems are tested for bias, security risks, and transparency. This initiative coincides with Apple's plans to incorporate ChatGPT into its iPhone assistant, even as enforceable AI regulations remain pending in Congress. (Bloomberg )

?? OpenAI Launches SearchGPT: A Game-Changer in Web Searching

OpenAI introduces SearchGPT, a cutting-edge search engine that utilizes generative AI for enhanced, conversational web results. This innovative tool aims to streamline searches by providing instant answers and relevant links, positioning OpenAI as a formidable competitor to Google and other search platforms, while navigating challenges like data accuracy and copyright concerns. (Wired )

In-depth with Nido: What we are thinking

In a week that saw Meta unleash what some are calling the most impressive open-source AI model to date, we find ourselves pondering not just the model itself, but the broader implications of open-source AI (more on Meta AI ). Our attention turns to Mark Zuckerberg's recent open letter, where he drew a parallel between Meta's open-source AI Llama and the venerable open-source operating system, Linux.

Zuckerberg's statement is ambitious: "Today, Linux is the industry standard foundation for both cloud computing and the operating systems that run most mobile devices – and we all benefit from superior products because of it." (more on Zuckerberg's open letter ). This view paints a future where open-source AI models like Llama become the bedrock of innovation, much as Linux has become for computing.

However, the reality is more complex, with many successful tech ecosystems blending open-source foundations with proprietary enhancements.

To understand the potential of open-source AI, we must first appreciate the journey of Linux. Like many revolutionary ideas, Linux started as a hobby project by Linus Torvalds in 1991 (more on Torvalds ). Its success stems from its collaborative nature, with thousands of developers worldwide contributing to its growth. More than 13,500 developers from more than 1,300 companies have contributed to the Linux Kernel. (more on Linux Foundation ).

Linux's open-source nature has saved companies billions in licensing fees and spurred innovation across industries (more on Linux Foundation ). However, it's important to note that many successful products and services built on Linux also incorporate proprietary elements, creating a symbiosis between open-source and commercial development.

Open Source vs. Proprietary Software Market Share

1. Web Servers (More on W3Tech )

1. Mobile Operating Systems:

1. Cloud Infrastructure

It's crucial to understand that the distinction between open source and proprietary software isn't always clear-cut, especially in advanced technological ecosystems. Cloud infrastructure provides a prime example of this complexity. Major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform operate on a mixed model. They often use open-source technologies at their core—for instance, many cloud services run on Linux servers—but layer proprietary services and interfaces on top. This hybrid approach allows these providers to benefit from the innovation and cost-effectiveness of open-source while also offering unique, value-added services. This complexity illustrates how the lines between open source and proprietary software can blur in modern technology stacks, creating ecosystems that leverage the strengths of both approaches.

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