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- Microsoft’s $100 billion price tag on AGI and more – AI News That Matters
Microsoft’s $100 billion price tag on AGI and more – AI News That Matters
NVIDIA acquires Run:ai and makes it open source, OpenAI faces for-profit pushback, how ChatGPT Search is misleading users and more!
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Today in Everyday AI
8 minute read
🎙 Daily Podcast Episode: Is AGI worth $100B? What’s going on at OpenAI? And why is Google using Claude? Here’s this week’s AI news that matters. Give it a listen.
🕵️♂️ Fresh Finds: Where the top AI models rank as 2024 ends, Meta’s new GenAI research and why AI data centers may distort the US power grid. Read on for Fresh Finds.
🗞 Byte Sized Daily AI News: NVIDIA acquires Run:ai and makes it open source, OpenAI faces For-Profit pushback and how ChatGPT Search is misleading users. For that and more, read on for Byte Sized News.
🚀 AI In 5: We’re showing you a secret ChatGPT hack to read images inside PDFs. See it here
🧠 AI News That Matters: Google is making some major AI moves but will they be enough? Is OpenAI changing its company structure? And AGI is worth what now? We break down the AI news that matters. Keep reading for that!
↩️ Don’t miss out: Did you miss our last newsletter? We talked about Altman calling Musk a bully, Asus unveiling its first mini AI PC with Copilot Plus, Trump appointing AI Advisor Sriram Krishnan and Meta unveils Large Concept Models. Check it here!
AI News That Matters - December 30th, 2024 📰
Google is using Claude to improve Gemini?
Why is OpenAI looking at building humanoids?
What does a $100 billion price tag have to do with AGI?
AI news and big tech didn't take a holiday break. Get caught up with Everyday AI's AI News That Matters.
Join the conversation and ask Jordan any questions on AI here.
Also on the pod today:
• Google's AI Strategy💡
• DeepSeek's Open-Source Model 👀
• Meta's AI Plan for Social Media 📲
It’ll be worth your 47 minutes:
Listen on our site:
Subscribe and listen on your favorite podcast platform
Listen on:
Here’s our favorite AI finds from across the web:
New AI Tool Spotlight – SEObot is an AI agent for blog SEO, Devpilot streamlines developer hiring and Neuradocs helps run Slack and Discord on autopilot.
AI in Society – A new report shows that AI data centers could be distorting the US power grid.
Big Tech – As the year comes to a close, here’s what Big Tech leaders had to say about AI in 2024.
AI in Everyday Life – Match Group, parent company of major dating apps like Tinder and Hinge, is rolling out new AI features to its dating apps.
AI Models – Here’s where the top AI models rank on the Chatbot Arena Leaderboard as the year ends.
Exciting News from Chatbot Arena❤️🔥
@OpenAI's o1 rises to joint #1 (+24 points from o1-preview) and @deepseek_ai DeepSeek-V3 secures #7, now the best and the only open model in the top-10!
o1 Highlights:
- Achieves the highest score under style control
- #1 across all domains… x.com/i/web/status/1…— lmarena.ai (formerly lmsys.org) (@lmarena_ai)
11:39 AM • Dec 30, 2024
Meta - Meta has published new research for generative retrieval.
Newly published research for generative retrieval for recommendations from teams at Meta.
- Preference Discerning with LLM-Enhanced Generative Retrieval ➡️ go.fb.me/evvcu8
- Unifying Generative and Dense Retrieval for Sequential Recommendation ➡️ go.fb.me/i7l955— AI at Meta (@AIatMeta)
6:29 PM • Dec 30, 2024
1. NVIDIA Officially Acquires Run:ai and Open Sources Its Software 🚀️
NVIDIA has finalized its acquisition of Run:ai, a software company specializing in GPU orchestration for AI cloud services, reportedly valued at around $700 million. With plans to open source Run:ai's platform, NVIDIA aims to foster broader accessibility within the AI ecosystem, allowing even more innovation across various hardware setups.
This strategy mirrors past actions by tech giants to appease antitrust concerns, as NVIDIA continues to solidify its dominance in AI hardware and software markets.
2. OpenAI's For-Profit Shift Faces More Legal Challenge ⚖️
Encode, a nonprofit organization, has requested to file an amicus brief supporting Elon Musk's injunction against OpenAI's transition to a for-profit entity, arguing that this change undermines OpenAI's original mission to prioritize safety and public benefit. The brief highlights concerns that the shift to a Delaware Public Benefit Corporation could allow OpenAI to prioritize shareholder profits over the safety of advanced AI technology.
With backing from notable figures like AI pioneer Geoffrey Hinton, Encode claims this move could have significant implications for the future of AI development and its alignment with public interest.
3. NVIDIA Shifts Gears to Robotics Amid AI Chip Competition 🦾
As competition in the AI chip market escalates, NVIDIA is pivoting towards robotics with the upcoming launch of its Jetson Thor compact computers for humanoid robots, expected in the first half of 2025. Deepu Talla, NVIDIA’s VP of robotics, suggests we're on the brink of a "ChatGPT moment" for physical AI, emphasizing a strategic move as rivals like AMD and cloud giants step up their game.
While NVIDIA's robotics segment currently represents a smaller portion of its revenue, the company’s recent investments, including a significant funding round for Figure AI, indicate a strong belief in the future of robotics.
4. xAI Raises $6 Billion, Nears $45 Billion Valuation 💰️
In a significant leap forward for Elon Musk's AI venture, xAI has successfully secured $6 billion in a Series C funding round, pushing its valuation to $45 billion—nearly double its previous worth. Notable investors include Andreessen Horowitz, Blackrock, and Kingdom Holdings, which contributed roughly $400 million.
With this fresh capital, xAI aims to enhance its infrastructure and roll out innovative products amid fierce competition from giants like OpenAI and Anthropic.
5. ChatGPT Search is Misleading Users? 🧐
In a startling revelation, The Guardian has uncovered that ChatGPT Search, OpenAI's newly launched AI-powered search engine, can be manipulated to produce misleading summaries. By embedding hidden text within websites, users could prompt the tool to overlook negative reviews and generate overly positive portrayals instead.
This incident highlights vulnerabilities previously noted in large language models, marking a significant test for ChatGPT’s capabilities in real-world applications.
Secret ChatGPT trick to read images inside of PDFs
Can ChatGPT analyze images within a PDF?
Most AI experts would say no.
BUT we found a secret hack to make it possible! We show you how it works.
Find out in today's AI in 5.
1 – Deepseek V3 looking to redefine open source LLMs 🚀
China's Deepseek just dropped V3 on GitHub with a license permitting full commercial use, modification, and distribution. No restrictions. Zero gatekeeping.
Their mixture of expert (MOE) architecture plus V3 optimization is matching GPT-4o and Claude 3.5 in logical reasoning and problem-solving benchmarks. The accuracy stats don't lie.
You can pull this beast straight from Hugging Face without needing a supercomputer. Already optimized for coding and mathematics applications.
And API costs are bafflingly affordable.
DeepSeek’s v3:
$0.14/million tokens input
$0.28/million tokens output
GPT 4o mini:
$0.15/million tokens input
$0.60/million tokens output.
What it means:
US tech giants are about to get bodied by Chinese open-source innovation in 2025.
We’ve been talking about this for months.
Keep an eye out on China’s LLMs in 2025.
2 – Meta’s AI Army to Invade Facebook 📱️
Meta's launching AI-generated accounts with full profiles, custom personalities, and independent posting abilities through their AI Studio platform.
Their current AI Studio already hosts "hundreds of thousands" of AI characters. Full rollout is planned across multiple countries over the next two years.
What it means:
Zero details on content moderation, misinformation controls, or how they'll flag AI vs human accounts. Totally fine, right?
These AI personas will interact with both human users and other AI accounts. Your aunt's political posts are about to get real interesting.
Facebook's speedrunning the death of authentic social connection. But hey, at least the AI drama will be entertaining.
3 – OpenAI’s Going Public (Benefit Company) 💼
According to reports, OpenAI's dropping the nonprofit angle and opting to become a Public Benefit Company (PBC) after securing $6.6B in funding earlier this year at a $157B valuation.
OpenAI just went from "we're saving humanity" to "we need that venture capital" real quick. They're transforming into a public benefit corporation after landing a $6.6B bag at a $157B valuation. And they're yanking those profit caps off for investors within two years.
OpenAI’s prolly gonna need TRILLIONS (of cash and compute) to chase AGI in the long run. Not billions - TRILLIONS.
That nonprofit status looking real uncomfortable when you need GDP-level funding. And while Elon's out here throwing shade with (shaky) lawsuits, OpenAI's just trying to secure the bag.
The nonprofit arm's staying around like that one friend who still uses Facebook, but let's be real - this is all about that sweet, sweet capital.
What it means:
Y'all really thought OpenAI was gonna build AGI with good nonprofit vibes and GitHub stars? Lolz.
This is like being shocked that your favorite indie band signed with a major label. It’s inevitable to make it big.
Those trillion-dollar computing costs ain't paying themselves, and last time we checked, you can't buy GPUs without…… serious money.
4 – Google’s Claude Study Session 🕵️
Caught in 4K: Google contractors are reportedly using competitor Claude to improve Gemini’s outputs.
The awkward part? Anthropic's terms straight up say "don't use Claude to train your competing models." Google's like "it's just evaluation, not training.”
Internal docs showing Claude references in Google's eval platform? Nothing to see here, folks. Move along.
Right?
What it means:
Every AI company's using everyone else's models for “evaluation” like that friend who "borrows" Netflix passwords.
This is tech's worst-kept secret since iPhone leaks. Google trying to act like they're not studying Claude's answers is giving major "I just happened to sit next to the smart kid during the test" energy.
Yeah, it’s a gray area. But the WFH and push for contractors to help train models means that a lot of lines are getting crossed.
5 – Google’s 2025 Gemini Takeover Plan 📈
Google CEO Sundar Pichai is (finally) saying the quiet part out loud: AI is Google’s top priority moving forward.
Reports are dishing out details from Google’s recent internal strategy meetings, and it’s Gemini focus All. Dang. Day.
Sundar just told Google to make Gemini their 16th product to hit 500M monthly users. Why? Because he's tired of people thinking "AI = ChatGPT" like it's 2022 all over again.
They're promising Gemini will be a universal AI assistant that works across ALL your devices.
And unlike ChatGPT's $200/month premium tier, Google's reportedly trying to keep Gemini cheap.
What it means:
NGL shorties….Google straight up fumbled the AI bag harder than a butterfingers convention.
Their Gemini GTM strategy of 2023 and early 2024 was disastrous. (To say it nicely.)
They had the users, the data, the compute - everything except the ability to ship product.
Their biggest mistake?
Hiding the real power of Gemini.
Non-technical business leaders are the ones now making big decisions on which LLMs they’ll be using, and they’re often evaluating models on the front-end, not developer platforms.
While players like Microsoft, OpenAI, Anthropic, Meta and Mistral display their most capable and updated models on the front end, Google has historically tucked their most recent models in their developer platforms.
We saw a change in that strategy in December 2024. We’ll see if Google learned from (what we think will be a) trillion dollar mistake.
6 – OpenAI’s Robot Dreams 🦾
OpenAI just un-ghosted their robotics program after a 2021 breakup, according to reports.
But they're not just investing in Figure AI and 1X - they're going full Tony Stark and now looking to potentially build their own humanoid robots.
The company has re-established its robotics research group after closing it in 2021
This hits different with NVIDIA also pushing hard into robotics. It's like every AI company suddenly remembered they can't take over the world without bodies.
The timing's wild too - right when everyone's focused on their models and drama, they drop this bombshell.
What it means:
Real talk? The next AI war ain't gonna be fought in your DMs - it's gonna be fought in your living room.
When the company that made ChatGPT starts building robot bodies, that's your cue to start hitting the gym. We're going from "AI might take your job" to "AI might take your job AND your spot on the couch.”
We just hope it’ll fold our laundry in addition to our spreadsheets.
7 – Cambridge’s AI Manipulation Warning 🚨
A new Cambridge University study just confirmed what we all suspected: AI's getting scary good at manipulation.
They're calling it the "intention economy" - where AI predicts and steers your choices before you even make them.
These systems aren't just reading your digital footprint - they're straight up forecasting and selling your future decisions to companies. Think targeted ads but with AI that knows you better than your therapist.
The researchers are saying advertisers can now use AI to adjust their strategies in real-time based on your behavior. Your wallet never stood a chance.
What it means:
Sheeeesh - we went from "AI might manipulate us" to "AI's already got us in a chokehold" real quick.
Social media had us hooked like digital dealers, but this intention economy? That's like giving AI the cheat codes to your brain. Your impulse purchases are about to get real impulsive.
8 – AI Godfather Hinton’s Double Trouble ⚠️
The AI godfather just looked at humanity's odds and said "make it spicier." Geoffrey Hinton doubled his human extinction estimate from 10% to 20%.
(Gulp.)
He compared humans to toddlers next to AI, and after seeing some ChatGPT conversations, he might be generous.
His key point? There's literally zero examples in history of something less smart controlling something more smart.
What it means:
Geoffrey Hinton isn’t some wild AI doomsdayer.
He’s literally one of the smartest people in the world when it comes to AI. Like… the Mount Rushmore of AI type.
So when the brainiac who helped birth modern AI starts doubling down on extinction odds, that's like your doctor doubling your risk assessment while backing away slowly.
But that 20% figure?
Scary.
8 – Microsoft’s AGI Money Move 💰
Microsoft and OpenAI just turned the AGI philosophical debate into a quarterly earnings target: $100B in profit.
That’s reportedly the new target of when we’ve achieved Artificial General Intelligence.
For context, Microsoft has reportedly invested more than $13 billion in OpenAI and has a 49% stake in the AI juggernaut. But, when AGI is “achieved” then Microsoft won’t be able to use post-AGI OpenAI tech in its products and services.
So they switched from letting OpenAI's board make that AGI call to straight up putting a price tag on it.
So when/if an AI system can generate $100 billion in profit, then that means we’ve achieved AGI?
Well…. That may be the price to pay to call something AGI, apparently. Lolz.
What it means:
They really said "forget the Turing test, show me the money."
Big brain business move from Microsoft.
TBH, we’ve been tip-toeing the AGI line for months. And as models like OpenAI’s o1 Pro and/or o3 get more capabilities, it’ll be hard to argue that we HAVEN’T achieved AGI.
This is a smart move from Microsoft, as leaving the AGI determination to OpenAI’s board was risky AF to begin with.
Imagine Microsoft Copilot losing access to next level AI tech with the snap of a few fingers? That’s some Thanos kinda power.
⌚
Numbers to watch
200%
The number of US job titles including "AI" has increased by 200% over the past two years.
Now This …
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