The AI Rundown by Lightscape Partners - 11/25/24

Good morning and welcome back to another edition of The AI Rundown by Lightscape Partners.

• This week, Microsoft unveiled new AI features at its Ignite Conference, including Copilot Actions designed to streamline daily tasks and a new SDK to build custom AI solutions, positioning the company to solidify its enterprise AI dominance.

• Pony AI is preparing for a US IPO with a valuation of up to $4.48 billion, signaling rapid growth in the autonomous vehicle industry. Revenues from robotaxi services in China and South Korea are driving market expansion, adding momentum to the booming autonomous tech space.

• Meanwhile, Huawei has set its sights on mass production of its Ascend 910C AI chip by 2025 despite U.S. restrictions, underscoring China’s resilience in the face of ongoing trade tensions and its drive to advance domestic AI capabilities.

Stay tuned as we explore these stories and their implications for the future of AI, technology, and innovation.

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Hardware + Software

Huawei targets mass production of advanced AI chip by 2025, despite U.S. restrictions. Link.

• Huawei aims to mass-produce its Ascend 910C AI chip in early 2025, despite challenges due to U.S. restrictions.

• Current chip yield is just 20%, far below the 70% needed for commercial viability.

• SMIC is manufacturing the 910C, but U.S. export controls on advanced lithography have limited production capabilities.

• Huawei plans to prioritize strategic government and corporate orders, focusing on the Chinese market amid ongoing U.S.-China trade tensions.

Microsoft announces new Copilot software at Ignite Conference. Link.

• Microsoft unveiled multiple updates to its cloud and AI services during the Ignite conference, including new AI agents and Nvidia GB200-powered AI servers.

• New features include Copilot Actions, designed to streamline tasks such as summarizing emails and meetings.

• Microsoft introduced Azure AI Foundry SDK and Agent Service, enabling businesses to build custom AI solutions.

• Security upgrades include Microsoft Security Exposure Management and Data Loss Prevent for Microsoft 365 Copilot, aiming to enhance protection for AI applications.

Models

AI Models Can Now Create a Replica of Your Personality. Link.

• A Stanford and Google DeepMind study shows that a two-hour interview can create an AI replica of a person, capturing values and preferences with 85% accuracy.

• These replicas, called 'simulation agents,' could help conduct social science research that's expensive or impractical with real subjects.

• The study also highlights risks, including misuse for unauthorized personification, similar to deepfakes.

• Qualitative interviews were used to distill individuality into data that AI could replicate, showing efficiency compared to large data sets.

Product Launches

Intuit launches AI-powered Intuit Assist for QuickBooks. Link.

• Intuit Assist is a generative AI financial assistant that automates tasks like generating estimates, invoices, and payment reminders, reducing manual work for businesses.

• The tool integrates seamlessly into QuickBooks Online, offering a connected solution to streamline business finances and save time.

• AI-driven invoice reminders help businesses get paid up to 45% faster, improving cash flow and efficiency.

• Businesses also have access to human experts for personalized assistance, further enhancing the benefits of Intuit Assist for growth and bookkeeping.

Google Cloud launches AI agent ecosystem program. Link.

• Google Cloud introduced a program to help partners build and sell AI agents using its platform.

• The program includes access to technical guidance, best practices, and early access to new AI technologies.

• Partners can list AI products in the new 'AI Agent Space' section of Google Cloud Marketplace, which currently features over a dozen offerings.

• The move positions Google against rivals like Microsoft, which also focuses heavily on AI agents with its Copilot Studio.

OpenAI

OpenAI releases a teacher's guide to ChatGPT, but skepticism remains. Link.

• OpenAI launched a free course for K-12 teachers to integrate ChatGPT into classrooms, in collaboration with Common Sense Media.

• The course has been deployed in several schools, but some educators worry it could normalize AI without addressing ethical implications effectively.

• Concerns include data privacy, potential misuse of generated content, and bias towards OpenAI's tools.

• Despite enthusiasm from some, mixed research and educator reluctance indicate that AI adoption in education may remain slow.

OpenAI deleted data relevant to NY Times lawsuit. Link.

• OpenAI engineers accidentally erased search data related to a copyright lawsuit by The New York Times and Daily News, complicating efforts to trace their content in AI training sets.

• The data loss occurred on November 14, and though partially recovered, it lacked critical structure, forcing plaintiffs to restart their analysis.

• The publishers’ lawyers acknowledged the deletion wasn’t intentional but stressed that OpenAI is better positioned to search its datasets for copyright infringement.

• OpenAI maintains its stance on fair use of publicly available data and has signed licensing deals with several publishers.

Data Centers + Energy

AI and Sustainability at COP29: Innovations in Energy Efficiency. Link.

• COP29 featured a panel hosted by Deloitte on reducing AI’s environmental footprint, with experts from NVIDIA, EON, and Crusoe Energy discussing energy-efficient AI practices.

• Deloitte's report predicts AI adoption will significantly increase data center energy demands, potentially reaching 3% of global electricity consumption by 2050.

• NVIDIA highlighted advances in energy efficiency, such as liquid-cooled GPUs and accelerated computing, which could reduce data center power use by 10x.

• AI's role in other industries, such as manufacturing, is also enhancing energy efficiency through tools like digital twins.

AI and electrification drive energy demand beyond supply. Link.

• Tech giants like Amazon, Microsoft, and Google are driving up energy needs with power-hungry data centers, straining Washington state’s clean energy supply.

• Utilities are looking into clean alternatives like nuclear and hydrogen, but scalable solutions are still years away, leaving a current gap.

• Amazon and Microsoft have signed deals to develop nuclear and fusion energy projects, aiming for sustainable, 24/7 power.

• The challenge is also tied to grid modernization, with experts emphasizing faster permitting for new energy infrastructure to keep up with rising demand.

Funding & Valuations

Cyera reaches $3 billion valuation in just seven months. Link.

• Cyera, a data security startup, raised $300 million in a Series D led by Accel and Sapphire Ventures, doubling its valuation to $3 billion since April.

• The New York-based company previously raised $300 million in a Series C led by Coatue at a $1.4 billion valuation.

• Founded in 2021, Cyera's AI-driven platform helps security teams understand, use, and secure data in complex digital environments.

• The funding will accelerate Cyera's platform development and growth, with a focus on R&D, sales, marketing, and strategic acquisitions.

Pony AI targets $4.48B valuation in US IPO amid autonomous vehicle boom. Link.

• Pony AI, a Chinese autonomous vehicle tech company, is preparing for a US IPO with an estimated valuation of up to $4.48 billion.

• The IPO will include 15 million American depositary shares priced between $11 and $13 each, with net proceeds supporting market expansion and R&D.

• Revenues from robotaxi services rose significantly, driven by operations in China and South Korea.

• Pony AI's key competitor, WeRide, recently completed its IPO, raising up to $458.5 million.

Safety and Ethics

AI Pioneer Yoshua Bengio Warns of Potential Dangers of Artificial Intelligence. Link.

• Yoshua Bengio has raised concerns about AI potentially being used against humanity and called for more research and regulation to mitigate risks.

• He highlighted the concentration of power among a few organizations and governments, which could lead to economic, political, and military instability.

• Bengio endorsed regulation and liability for AI companies to ensure accountability and safe development.

• He emphasized the importance of proactive measures to guide AI's evolution positively, stressing it's not too late for intervention..

AI and ML Enhance SOC Performance According to New Survey. Link.

• 91% of cybersecurity professionals reported improvements in their security operations center (SOC) due to AI and ML, highlighting increased speed, accuracy, and efficiency.

• 31% of respondents said AI and ML tools improved threat detection, automated tasks, and sped up threat responses.

• AI and ML also helped reduce false positives for 24% of respondents, alleviating a major burden for SOC analysts.

• Overall, AI and ML tools are making a significant positive impact on enterprise security posture.

Content Creation

Generative AI adoption in studios lags, social media moves ahead. Link.

• Leading studios are hesitant to fully adopt generative AI for content creation due to concerns about IP liability and the immaturity of current tools.

• Deloitte predicts less than 3% of production budgets for major studios will be spent on generative AI in 2025, but 7% may be allocated for operational tools.

• Independent creators and social media platforms are adopting generative AI more quickly, gaining a competitive edge in content creation.

• Studios are also cautious about licensing their IP for AI training, fearing loss of control over original content.

Market Map of the Week

Building the next generation of hardware: Why AI-powered engineering tools matter. Link.

Portfolio Job Opportunities

Machine Learning and AI Engineer - Toggle AI

Senior Software Engineer, AI Product - Standard Bots

Firmware Engineer, Machine Learning Accelerator - Etched

Firmware Engineer, Machine Learning Validation - Etched

Applied AI Researcher (USA) - Articul8

Senior AI Scientist, Generative AI - Vizit

Product Manager, Vision Systems - Shield AI

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