AI @ Noon | July 24

China’s Xi Jinping bets on high tech for ‘great rejuvenation’: Communist party’s third plenum reinforces focus on self-sufficiency but fails to assuage fears about weak consumption or oversupply. FT

Washington’s most powerful interests don’t know whether to cheer Harris — or dread her: Would she bring continuity with Joe Biden’s policies? A more centrist vibe? A sharper progressive bite? Industries including tech, energy and pharma want to know. Politico

What Fortune 500 CEOs could expect from a Kamala Harris administration Fortune

Fortune: Kamala Harris could mean an end to Democrats’ hard line on crypto—but it’s too soon to say for sure

Here's where Kamala Harris stands on tech issues including AI, Big Tech, and crypto BI

Fortune: Elon Musk backs down from $45 million a month pledge to Trump, says he doesn’t ‘subscribe to cult of personality’

Senators demand OpenAI detail efforts to make its AI safe: Following a Washington Post report, five lawmakers ask the artificial intelligence start-up to describe how it will ensure its tools don’t cause harm. WP

AI firms will soon exhaust most of the internet’s data: Can they create more? Economist

Meta releases open-source AI model it says rivals OpenAI, Google tech: WP reports CEO Mark Zuckerberg says its Llama AI models, which are available to anyone, will surpass competitors next year. But the open approach has its critics too.

+ @AIatMeta: Starting today, open source is leading the way. Introducing Llama 3.1: Our most capable models yet. Today we’re releasing a collection of new Llama 3.1 models including our long awaited 405B. These models deliver improved reasoning capabilities, a larger 128K token context window and improved support for 8 languages among other improvements. Llama 3.1 405B rivals leading closed source models on state-of-the-art capabilities across a range of tasks in general knowledge, steerability, math, tool use and multilingual translation.

Zuckerberg aims to rival OpenAI, Google with new Llama AI model: The Meta CEO defends both his open source strategy and a massive investment in artificial intelligence. Bloomberg

Cloud and AI lift Google-parent quarterly profit: AFP reports Google-parent Alphabet on Tuesday reported profit and revenue that beat expectations as its AI-amped cloud and search ads businesses thrived.

Alphabet revenue jump shows no sign of AI denting search business: FT reports cloud computing growth shows continued demand as companies race to build large language models.

The rise of the AI gadget could free us from our smartphones. We just need to find the right device Fortune

Insurers’ losses from global IT outage could reach billions: FT reports disruption to companies’ systems estimated to be most significant loss event since NotPetya malware attacks of 2017.

Wiz turns down Google: Fortune reports cybersecurity startup Wiz, valued at $12 billion, is turning down Google’s offer to buy the company. Instead, Wiz will seek to go public via an IPO, according to an internal memo.

Enjoy the ride + plan accordingly.

-Marc

AI @ Noon | July 23

Nvidia is working on a new AI chip for China that's compatible with US export controls and could ship in 2025, according to sources.

Europol warns of rise in AI child abuse imagery: AFP reports AI makes it more difficult to identify real-life victims and perpetrators, the agency said. It also warned of using so-called "deepfake" technology to mimic real people.

Microsoft blames EU rules for allowing world’s biggest IT outage to happen: The Telegraph reports that the European Commission deal prevented software giant from making security changes that would have blocked CrowdStrike update, claims tech giant.

+ Microsoft cannot block access to the Windows kernel because of a 2009 agreement with the European Commission meant it was unable to make security changes that would have blocked the CrowdStrike update that triggered widespread travel and healthcare chaos on Friday.

+ A Microsoft spokesman said it cannot legally wall off its operating system in the same way Apple does because of an understanding it reached with the European Commission following a complaint. In 2009, Microsoft agreed it would give makers of security software the same level of access to Windows that Microsoft gets.

+ Microsoft said in a blog post Saturday that 8.5 million Windows machines were hit, or less than 1% of its global footprint. That number was enough to bring down the operations of major businesses across industries including healthcare, media, and restaurants.

Europe’s rushed attempt to set the rules for AI: The EU says its pioneering legislation will protect humans from AI’s dangers. Critics say it is undercooked and will stifle innovation. FT

Here’s where Kamala Harris stands on Big Tech, AI, and the climate fight: One of her signature issues was curtailing the distribution of pornography on social media, particularly “revenge porn.” FC

Can Kamala Harris win Silicon Valley? Fortune

In Silicon Valley, where Trump made inroads, Democrats are now invigorated: Elon Musk, Marc Andreessen and others have endorsed Donald J. Trump. But President Biden’s withdrawal has re-energized Democrats across the tech industry and may blunt that momentum. NYT

Has Silicon Valley gone MAGA? Some of America’s wealthiest tech investors have come out for Trump. But most Big Tech leaders are staying silent, for now. FT

How Biden’s AI policies pushed some Silicon Valley bigwigs toward Trump: Trump has promised VCs and AI companies a hands-off approach to AI regulation. FC

Big Tech's phony Trumpism: Why Marc Andreessen is wrong to support Trump, according to Marc Andreessen. BI

Microsoft, OpenAI push back on Republican AI strategy: Politico reports executives from Microsoft and OpenAI pushed for regulatory “rules of the road” on Friday. The two spoke as the Republican Party seems poised to undo Biden’s artificial intelligence executive order and take a light touch to restrictions on AI should former President Donald Trump be elected again.

+ “We do think we need some rules of the road. And also would prefer not to have this regulated at the state level. Fifty states regulating this will make business impossible." -- Teresa Hutson @ Microsoft

WP: Microsoft’s global sprawl comes under fire after historic outage

AI start-up Cohere raises $500mn as it seeks to take on OpenAI: FT reports funding round values Canadian group launched by Google alumni at $5.5bn.

An AI mafia is forming before our eyes: Here’s the definitive map: Ex-employees at places like OpenAI and Microsoft have gone on to form some of the most promising upstarts in the AI sector. FC

The first wave of AI innovation is over. Here’s what comes next: Businesses themselves, not closed-source AI companies, need ownership and control of their proprietary models. FC

The data that powers AI is disappearing fast: New research from the Data Provenance Initiative has found a dramatic drop in content made available to the collections used to build artificial intelligence. NYT

Elon Musk says Tesla to use humanoid robots next year: WSJ reports the CEO said the electric-vehicle maker would use the robots internally first before producing them for other companies.

Enjoy the ride + plan accordingly.

-Marc

AI @ Noon | July 19

Schiff and other House members demand answers on how Google AI Overview works: Rep. Adam Schiff (D-CA) doubled down on his efforts to expose how artificial intelligence programs work, demanding detailed information from Google about the back end of its experimental AI Overview search results feature. SFC

Bloomberg: OpenAI releases GPT-4o Mini, a cheaper version of flagship AI model

ChatGPT maker OpenAI goes smaller and cheaper with new AI tech: WSJ reports the company is releasing GPT-4o mini, part of an industry shift toward more efficient artificial-intelligence models.

OpenAI, Google, and Anthropic try building AI that can reason: As with so much of AI, the concept of reasoning is difficult to define and measure. Bloomberg

AI adoption in ad industry needs ‘non-optional mandates’, says Interpublic CEO Philippe Krakowsky Fortune

New technologies like AI let companies learn more about their customers—while raising privacy questions Fortune

Meta AI paused in Brazil: Disquiet over Meta’s exploiting user data to train its AI is spreading. After pausing its AI rollout in Europe, Meta has done the same in Brazil. Brazil’s National Data Protection Authority effectively blocked Meta’s AI-training practices earlier this month after the company tried to claim the right to train its AI with its users’ Instagram and Facebook data.

Samsung buys AI firm: Reuters reports that Samsung is buying a British AI startup called Oxford Semantic Technologies for an undisclosed amount. The company makes a “rules-based reasoning engine” that aims to provide truth transparently. 

AI’s insatiable need for energy is straining global power grids Bloomberg

OpenAI and Broadcom in talks about developing new AI chip: FT reports ChatGPT maker seeks ways to expand capacity as it aims to stay ahead of its rivals.

Reuters: TSMC rides AI demand to raise revenue forecast, says no to US joint venture

Bloomberg: More than half of TSMC’s sales are now high-end chips like AI

+ HPC division houses AI accelerators, servers and MacBook chips

+ TSMC’s key sales driver has shifted from smartphones to AI

Enjoy the ride + plan accordingly.

-Marc

AI @ Noon | July 18

US unveils Americas-wide plan to boost semiconductor production: AFP reports Secretary of State Antony Blinken unveiled Wednesday a new plan for countries in the Americas to boost production of semiconductors, which are critical just about everywhere in modern industry and a sector dominated by China.

US floats tougher trade rules to rein in China chip industry: Bloomberg reports the Biden administration, facing pushback to its chip crackdown on China, has told allies that it’s considering using the most severe trade restrictions available if companies such as Tokyo Electron Ltd. and ASML Holding NV continue giving the country access to advanced semiconductor technology.

+ The US is mulling whether to impose a measure called the foreign direct product rule, or FDPR. The rule lets the country impose controls on foreign-made products that use even the tiniest amount of American technology.

Microsoft’s hiring of Inflection AI staff probed by UK regulator: The Competition and Markets Authority (CMA) had invited comments over tie-up as part of broader concerns about dealmaking in AI industry. FT

FTC seeking details on Amazon deal with AI startup Adept, source says: Reuters reports the request reflects the FTC's growing concern about how AI deals have been put together and follows a broader review of partnerships between Big Tech and prominent AI startups.
 
The death of the Chevron doctrine complicates US policymakers’ efforts to regulate AI—but there’s another way Dewey Murdick + Owen J. Daniels

A short history of AI: In the first of six weekly briefs, we ask how AI overcame decades of underdelivering. Economist

Anthropic and Menlo Ventures partner on $100 million AI fund: Bloomberg reports the VC firm’s new fund will back companies using Anthropic products with money, advice, and credits. 

‘Godmother of AI’ Fei-Fei Li builds $1bn start-up in 4 months: Stanford computer scientist’s ‘spatial intelligence’ venture wins backing from investors including Andreessen Horowitz. FT

Elon Musk wants his AI bot to deliver the news. It is struggling with the job: WSJ reports Grok posted incorrect information, amplified unverified claims, and failed to identify sarcasm as details of the Trump shooting unfolded.

Don’t blame AI for emissions: Earlier this month, Google disclosed that carbon emissions from its data centers rose by 13% in 2023, which the company blamed on the “AI transition.” But at Fortune’s Brainstorm Tech conference, Google chief scientist Jeff Dean said that people are unfairly blaming the new technology, noting that AI makes up only a small part of data center usage.

Tiny Japanese startup is turning ‘Her’ AI dating into reality Bloomberg

Enjoy the ride + plan accordingly.

-Marc

AI @ Noon | July 17

Elon Musk has said he is committing around $45 million a month to a new pro-Trump super PAC: WSJ reports other backers of America PAC include Palantir Technologies co-founder Joe Lonsdale and the Winklevoss twins.

Bloomberg: Andreessen, Horowitz latest tech VCs to throw support to Trump

Silicon Valley’s tech titans line up to donate to Donald Trump: FT reports America PAC has raised over $8.7mn from backers including Palantir’s Joe Lonsdale, Andreessen Horowitz founders and Sequoia’s Doug Leone.

Trump allies draft AI order to launch ‘Manhattan Projects’ for defense: The plan to ‘make America first in AI’ and roll back ‘burdensome regulations’ would favor Silicon Valley investors, who are now flocking to support the former president. WP

California AI bill SB-1047 sparks fierce debate; State senator likens it to ‘Jets vs. Sharks’ feud: A California state bill has emerged as a flashpoint between those who think AI should be regulated to ensure its safety and those who see regulation as potentially stifling innovation. The bill, which heads to its final vote in August, is sparking fiery debate and frantic pushback among leaders from across the AI industry—even from some companies and AI leaders who had previously called for the sector to be regulated. Fortune

After euphoria, fear of bubble grows around generative AI: Some analysts are warning that spending in the generative artificial intelligence sector, particularly on computing capacity, is far outstripping revenues. Le Monde

How Microsoft’s Satya Nadella became tech’s steely eyed AI gambler: Microsoft’s all-in moment on artificial intelligence has been defined by billions in spending and a CEO counting on technology with huge potential and risks. NYT

What messing with chatbots tells us about the future of AI John Herrman

Fujitsu invests in OpenAI rival Cohere, eyeing Japanese language model: Nikkei reports Japan tech group envisions model serving digitization in many industries.

Bloomberg: Apple’s India sales surge 33% to record in shift from China

+ Sales jump shows Apple is succeeding in winning users in India

+ Apple wants to challenge Android’s dominance in the country

Samsung’s ‘chip crisis’: AI ambitions hit by unprecedented worker unrest: FT reports the Korean tech giant risks losing disenchanted engineers to domestic rival SK Hynix.

Enjoy the ride + plan accordingly.

-Marc

AI @ Noon | July 16

Crypto crashes the RNC: Crypto leaders at the Republican convention will make their case to GOP power brokers. Politico

Rep. Wexton, confronting degenerative disease, finds her voice through AI WP

Politico: Business groups call on Biden to halt rulemaking in light of Chevron deference decision

Nvidia could reach $50tn market cap in a decade, says top tech investor: FT reports early Tesla and Amazon backer James Anderson sees chipmaker’s potential scale as ‘way higher than I’ve ever seen.’

Samsung’s ‘chip crisis’: AI ambitions hit by unprecedented worker unrest: FT reports the Korean tech giant risks losing disenchanted engineers to domestic rival SK Hynix.

AI can make you more creative—but it has limits: Although it can boost individuals’ creativity, it seems to homogenize and flatten our collective output. Rhiannon Williams

Universities don’t want AI research to leave them behind: Outspent by Big Tech, some academics are focusing on research that requires less computing power, even as they try to build more of it. WSJ

Why AI is so expensive: The push for bigger AI models, and more chips and data centers to support building them, is driving up costs for technology companies. Bloomberg

No, AI won’t use all the electricity: Utilities’ projections of booming energy demand have a habit of not coming true. Justin Fox

Bloomberg: Apple is top pick at Morgan Stanley as AI seen driving iPhone, iPad upgrades

+ Shares have risen 17% since Apple Intelligence reveal

+ Analyst expects 500m iPhones to be shipped over two years

Bloomberg: Amazon brings Rufus AI shopping assistant to all US customers

A study in Scarlett: After avenging herself on Disney and OpenAI, Scarlett Johansson stars in a summer rom-com revolving around the race to the moon. NYT

Enjoy the ride + plan accordingly.

-Marc

AI @ Noon | July 15

The Hong Kong government is making its own version of ChatGPT, after OpenAI restricted access to the popular chatbot.

India antitrust probe finds Apple abused position in apps market: An investigation by India's antitrust body has found that Apple exploited its dominant position in the market for app stores on its iOS operating system, engaging "in abusive conduct and practices," a confidential report seen by Reuters showed.

‘I am happy to see how my baby is bouncing’: The AI transforming pregnancy scans in Africa: While ultrasound services are normal practice in many countries, software being tested in Uganda will allow a scan without the need for specialists, providing an incentive for pregnant women to visit health services early on. Guardian

Starmer plans to introduce AI bill in King’s Speech: Plan for tech regulation will be one of 35 bills to be set out by new Labour government. FT

Robots and other smart machinery will comprise up to one-third of the US military in the next 10 to 15 years, retired Army Gen. Mark Milley, a former chairman of the Joint Chiefs of Staff, said at an Axios event.

+ The Senate Armed Services Committee's version of the annual defense policy bill features an array of provisions focused on AI and emerging tech.

What are AI agents? The next big thing is AI tools that can do more complex tasks. Here’s how they will work. Melissa Heikkilä

What if the AI boosters are wrong? A skeptical paper by Daron Acemoglu, a labor economist at MIT, has triggered a heated debate over whether artificial intelligence will supercharge productivity. NYT

Fortune: 70,000 students are already using AI textbooks

OpenAI working on new reasoning technology under code name ‘Strawberry’ Reuters

OpenAI promised to make its AI safe. Employees say it ‘failed’ its first test. The previously unreported incident showcases the limits of President Biden’s strategy for thwarting AI harms. WP

OpenAI illegally barred staff from airing safety risks, whistleblowers say: In a letter exclusively obtained by The Washington Post, whistleblowers asked the SEC to probe company’s allegedly restrictive non-disclosure agreements. WP

AT&T says data from 109 million US customer accounts illegally downloaded: Reuters reports AT&T said on Friday the company suffered a massive hacking incident as data from about 109 million customer accounts containing records of calls and texts from 2022 was illegally downloaded in April.

Bloomberg: AT&T data hack prompts FCC probe, raises broad security concerns

+ Records downloaded from Snowflake cloud platform, AT&T says

+ Data includes records of customer calls, texts over 6 months

Google near deal to buy startup Wiz for $23 billion: WSJ reports the deal for the cybersecurity company would be the tech giant’s largest acquisition ever.

AI brings soaring emissions for Google and Microsoft, a major contributor to climate change: NPR reports as AI gets more sophisticated, it needs more energy. In the US, a majority of that energy comes from burning fossil fuels like coal and gas which are primary drivers of climate change.

AI's insatiable appetite for energy: NYT reports the soaring electricity demands of data centers and AI are straining the grid in some areas, pushing up emissions and slowing the energy transition.

AI’s bizarro world: Fortune reports we’re marching towards AGI while carbon emissions soar.

Enjoy the ride + plan accordingly.

-Marc

AI @ Noon | July 12

The Kremlin is rewriting Wikipedia: A new version of history is taking shape. Economist

Republicans seek probe of Microsoft’s $1.5bn investment in UAE’s G42: Letter says deal warrants ‘special scrutiny’ on any ties between AI group and China. FT

US businesses may soon find that deregulation comes with risks: Recent Supreme Court decisions have hamstrung regulators but they will also make things much more complex. Brooke Masters

Why the Pentagon needs Silicon Valley’s AI: Conflicts in Ukraine and Syria signaled to defense officials a new kind of war—one that would require Big Tech’s expertise. FC

OpenAI develops system to track progress toward human-level AI: The company believes its technology is approaching the second level of five on the path to artificial general intelligence. Bloomberg

The future is all bot vs. bot Axios

The intense battle to stop AI bots from taking over the internet: Artificial intelligence systems need to be trained on text – which has led their creators to gather up words from right across the web. Independent

Will AI become your assistant or your boss? An ethicist explains: An AI ethicist argues that while AI could increase efficiency, it could create a new surveillance-based work environment. FC

AI bubble set to inflate further: It will take time for the technology to be put to productive use by customers. Richard Waters

WSJ: Get ready for more AI mania this earnings season

Bloomberg: Sequoia, Nvidia back startup fireworks AI at $552 million valuation

Silicon Valley wins few government contracts: WSJ reports the total amount of awards received by country’s top national security startups less than half of what venture capitalists have invested.

Apple Pay will open up to rival payment services in Europe. 

Rise of the restaurant robots: Chipotle, Sweetgreen, and others bet on automation: Chains experiment with machine helpers like Flippy, Chippy, and Autocado as they face increasing labor costs. WSJ

Google parent Alphabet has shelved efforts to acquire HubSpot.

Tesla is postponing its planned robotaxi unveiling to October.

Big Tech’s climate goals at risk from massive AI energy demands: Bloomberg reports Microsoft, Google, and Amazon are grappling with growing energy demands from artificial intelligence. 

Enjoy the ride + plan accordingly.

-Marc