The AI Rundown by Lightscape Partners - 09/23/24

Good morning and welcome back to another edition of The AI Rundown by Lightscape Partners. This week, we’re exploring pivotal stories that highlight how the AI landscape is evolving in response to soaring demands and expectations.

Let’s dive into the highlights:

• Microsoft is reigniting the iconic Three Mile Island nuclear reactor to power its data centers, setting a bold precedent for sustainable energy solutions in tech infrastructure.

• Salesforce is redefining enterprise AI with its new autonomous tools and usage-based pricing, marking a significant shift in how businesses leverage AI to optimize operations.

• Mistral AI is making waves with its new suite of models and competitive pricing, democratizing access to powerful AI capabilities for a broader range of users.

Stay tuned as we unpack these stories and what they mean for the future of AI and technology.

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AI Product Launches

Apple Intelligence public betas released with new AI features. Link.

• Apple has launched public betas for iOS 18.1, iPadOS 18.1, and macOS Sequoia 15.1, introducing new Apple Intelligence features such as text rewriting tools, an updated Siri design, and a photo "Clean Up" tool.

• These features were previously available only in developer betas and are now accessible to a broader audience.

• Only certain devices, including the iPhone 15 Pro and the upcoming iPhone 16 models, as well as iPads and Macs with M1 chips or newer, support these features.

• The final versions of these updates are expected in October.

Enterprise AI

Salesforce's AI strategy shifts to autonomous tools and new pricing model. Link.

• Salesforce has introduced a new AI strategy at its Dreamforce conference, showcasing tools that can handle tasks autonomously, such as customer service and scheduling, without human intervention.

• The company will charge $2 per conversation for these generative AI "agents," which aim to replace certain job functions, allowing businesses to scale operations without additional hires.

• This move marks a shift from Salesforce’s traditional subscription model and addresses potential job displacement due to AI.

• The new strategy contrasts with earlier AI assistants like Microsoft’s Copilot, which did not meet customer expectations.

Content Creation

YouTube introduces AI tools to empower creators and boost engagement. Link.

• YouTube is integrating advanced AI capabilities to enhance content creation and community engagement.

• New features include "Dream Screen" for generating unique video backgrounds using Google DeepMind's Veo, and an AI-powered Inspiration Tab to help creators brainstorm ideas and develop content.

• A revamped Community Hub aims to foster deeper connections with fans, while tools like auto-dubbing and AI-enhanced reply suggestions make content more accessible globally.

Runway partners with Lionsgate to integrate AI in film production. Link.

• Runway has announced a collaboration with Lionsgate to create a customized AI model based on Lionsgate’s proprietary content catalog.

• This AI will support filmmakers and creatives by generating cinematic videos and enhancing pre- and post-production processes through Runway’s advanced tools.

• Lionsgate views this partnership as a way to leverage AI for innovative and cost-effective content creation.

• Runway also plans to license these AI models for individual creators potentially, expanding access to these advanced tools.

Hardware

Emerging competitors challenge Nvidia's dominance in AI chips. Link.

• Nvidia currently dominates the AI chip market, with its GPUs being essential for AI research and development.

• However, competitors like AMD and Intel are making strides with their own AI hardware solutions.

• AMD is focusing on high-performance GPUs with its MI325X model, while Intel is advancing with its Gaudi AI accelerators.

• Meanwhile, startups like Cerebras, SambaNova, and Groq are developing innovative architectures that could rival Nvidia's.

• Although none are poised to dethrone Nvidia immediately, the increasing competition suggests a more diverse AI chip market in the future.

Models

Mistral AI launches new offerings with free API and updated pricing. Link.

• Mistral AI has introduced several new initiatives aimed at making advanced AI accessible to more users.

• They have launched a free tier on "la Plateforme," allowing developers to experiment with their models at no cost.

• Additionally, they have significantly reduced prices across their entire model lineup, including up to 80% cuts for models like Mistral Small and Codestral.

• They also unveiled Mistral Small v24.09, a 22-billion-parameter model optimized for enterprise use cases.

• Finally, their vision model Pixtral 12B is now available for free on "le Chat," supporting diverse image-related tasks with an open-source license for secure, private use.

OthersideAI CEO addresses fraud allegations over Reflection 70B model. Link.

• Matt Shumer, CEO of OthersideAI, has responded to accusations of fraud after independent researchers failed to replicate the performance of his newly released AI model, Reflection 70B.

• Shumer apologized on social media, attributing the discrepancies to technical issues during the model’s upload to Hugging Face. He admitted to getting "ahead of himself" but has yet to clarify the exact cause of the discrepancies.

• Additionally, Shumer did not disclose his investment in Glaive AI, the data platform used to train the model, raising further skepticism among the AI community.

Data Centers and Energy

AWS seeks nuclear expertise for data center power strategy. Link.

• Amazon Web Services (AWS) is hiring a principal nuclear engineer to explore the use of modular nuclear power plants (SMRs) for its data centers.

• This move follows AWS's recent acquisition of a data center campus near the Susquehanna nuclear power plant in Pennsylvania for $650 million.

• The role involves collaborating with external partners to design efficient and safe nuclear facilities, navigating regulatory processes, and establishing a nuclear fuel strategy roadmap.

• This initiative reflects AWS's efforts to meet the rising energy demands of AI data centers, amidst similar moves by tech giants like Microsoft and Oracle towards nuclear power solutions.

Three Mile Island nuclear reactor to restart for Microsoft data centers. Link.

• Constellation Energy Corporation has announced plans to restart the Unit 1 nuclear reactor at Three Mile Island in Pennsylvania to provide power for Microsoft data centers.

• The reactor, shut down in 2019 due to economic reasons, will undergo significant investment and regulatory approvals before resuming operations in 2028.

• Microsoft has signed a 20-year agreement to purchase energy from the plant, supporting its goal to be carbon-negative by 2030.

• The move reflects a broader trend of tech companies turning to nuclear energy to meet growing power demands from data centers amid grid capacity challenges.

Market Map of the Week

The Value of Vertical AI by IVP. Link.

Thank you for reading the AI Rundown by Lightscape Partners. Please send any questions, comments, or suggestions to [email protected].