The AI Rundown by Lightscape Partners - 09/03/24

Good morning, and welcome back to this week’s AI Rundown by Lightscape Partners.

Last week in AI saw regulatory changes, strategic investments, and technological innovations shaping the AI landscape. Key themes include the balancing act of AI safety versus innovation, major funding rounds fueling AI development, and the continued evolution of consumer-facing AI technologies.

• California's new bill mandates AI "kill switches" to prevent public safety risks, sparking debate over its impact on innovation.

• OpenAI’s newest funding round values the AI company at over $100 billion with Apple and Nvidia considering investing.

• 1X Technologies introduces the NEO Beta, a humanoid robot designed for safe home use, moving from commercial to consumer markets.

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Top AI Stories of the Week

California passes controversial AI safety "kill switch" bill, faces governor's decision. Link.

• California's legislature has passed SB-1047, a bill requiring AI model creators to implement a "kill switch" to halt models that pose novel threats to public safety.

• The bill, supported by AI experts like Geoffrey Hinton, faces criticism for focusing on futuristic risks rather than current issues like misinformation.

• Opponents argue it could stifle innovation, raise compliance costs, and hinder AI model sharing, affecting academic research.

• Governor Gavin Newsom has until September 30 to decide whether to sign or veto the bill, balancing concerns of over-regulation against industry calls for oversight.

Apple and Nvidia in talks to invest in OpenAI alongside Microsoft and Thrive Capital. Link.

• Apple and Nvidia are reportedly in discussions to join a new funding round for OpenAI, which would value the ChatGPT maker at over $100 billion.

• Led by Thrive Capital, the round also includes Microsoft, OpenAI’s primary strategic investor.

• This move underscores Apple's commitment to AI, as it partners with OpenAI to enhance its own AI capabilities across devices.

• Nvidia, a key supplier of AI chips to OpenAI, aims to deepen its ties with the AI leader.

• This investment reflects both companies’ strategic efforts to maintain access to cutting-edge AI technologies amidst growing competition.

1X Technologies unveils NEO Beta humanoid robot for home pilots. Link.

• 1X Technologies has introduced the NEO Beta humanoid robot as it prepares for pilot deployments in select homes, marking a shift from commercial to consumer use.

• Designed for mass production, NEO Beta emphasizes safety, weighing 25 kg and featuring a soft exterior to minimize injury risks.

• The robot aims to perform household chores and gather feedback during real-world trials.

• Despite significant funding in the humanoid robotics sector, the practicality and affordability of such robots remain unproven, with NEO’s market price yet to be announced.

Models

Amazon will launch a new AI-powered Alexa using Anthropic's Claude. Link.

• Amazon is launching a new version of Alexa in October, powered by Anthropic’s Claude AI instead of Amazon's in-house AI.

• This new version aims to improve responsiveness, provide context-aware interactions, and offer advanced features like personalized shopping advice and enhanced home automation.

• It will be available as a paid subscription, contrasting Amazon's typical reliance on internal AI technology.

OpenAI plans to launch advanced AI model ‘Strawberry’ in the fall. Link.

• OpenAI is preparing to release its new AI model, “Strawberry,” which aims to surpass current AI capabilities by solving complex math problems, developing market strategies, and performing deep research tasks.

• This model focuses on enhancing advanced reasoning abilities, pushing the boundaries of what AI can achieve in various sectors.

• The Strawberry model represents OpenAI’s continued efforts to achieve human-level reasoning and drive innovation in AI technology.

Fundraising

Magic raises $320M to expand AI coding models and build supercomputers. Link.

• Magic, an AI startup developing code-generating models, raised $320 million from investors including former Google CEO Eric Schmidt, Alphabet’s CapitalG, and Atlassian.

• This funding, which boosts Magic’s total raised to $465 million, will support the development of advanced AI models with ultra-long context windows and the construction of supercomputers using Nvidia GPUs on Google Cloud.

• Magic’s technology aims to automate software development tasks and eventually work towards artificial general intelligence (AGI), positioning it as a notable player in the growing market of AI-powered coding tools.

Codeium raises $150M, reaches unicorn status as GitHub Copilot competitor. Link.

• Codeium, an AI-powered coding assistant competing with GitHub Copilot, raised $150 million in a Series C round led by General Catalyst, valuing the company at $1.25 billion.

• Founded in 2021, Codeium supports 70 programming languages and integrates with popular development environments, attracting over 700,000 users and 1,000 enterprise customers.

• The startup, which offers both SaaS and self-hosted deployment options, emphasizes strong security and proprietary model training to minimize data risks and copyright issues.

• With a focus on providing deep context and trustworthy coding suggestions, Codeium aims to capture a slice of the growing AI coding tools market.

Market Map of the Week

Gen AI App Infrastructure Stack from Sapphire Ventures. Link.

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