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  • OpenAI not profitable until 2029? Microsoft goes all in on AI/health & more – AI News That Matters

OpenAI not profitable until 2029? Microsoft goes all in on AI/health & more – AI News That Matters

Adobe's new AI tools, OpenAI's new AI framework, EU unveils AI program more!

Outsmart The Future

Today in Everyday AI
7 minute read

🎙 Daily Podcast Episode: OpenAI not profitable until 2029? Tesla has new AI vehicles? Microsoft is helping AI in healthcare? Here’s this week’s AI news that matters. Give it a listen.

🕵️‍♂️ Fresh Finds: Anthropic’s CEO speaks on AGI, Microsoft UK CEO appointed to EU council and Gemini gets new API parameters. Read on for Fresh Finds.

🗞 Byte Sized Daily AI News: Adobe launches GenAI video model, OpenAI unveils new AI framework and EU Commission launches new AI tool. For that and more, read on for Byte Sized News.

🚀 AI In 5: Apple just released Apple Intelligence for beta! We’re checking it out on MacOS 15.1 and showing you how it works. See it here

🧠 AI News That Matters: From OpenAI’s financial issues to Google’s run-in with the U.S. DOJ, we’re breaking down what you missed last week in the world of AI. Keep reading for that!

↩️ Don’t miss out: Did you miss our last newsletter? We talked about OpenAI's new MLE-benchmark, NVIDIA's Blackwell chips sell out for a year and Gmail users become target of AI scam. Check it here!

AI News That Matters - October 14th, 2024 📰

Is OpenAI gonna lose money for 5 more years?

Will Tesla be able to use AI to solve transportation problems?

Why is Microsoft going all in on AI in healthcare?

We discuss this week's AI News That Matters.

Join the conversation and ask Jordan any questions on AI here.

Also on the pod today:

• US Gov Challenges Google 🇺🇸
• AI Researchers Win Nobel Prizes 🏅
• Apple Questions AI Model Logic 🤔

It’ll be worth your 44 minutes:

Listen on our site:

Click to listen

Subscribe and listen on your favorite podcast platform

Listen on:

Here’s our favorite AI finds from across the web:

New AI Tool Spotlight – BuyScout is an AI copilot for online shopping, Apply AI helps customize your resume and Audo is an AI career concierge.

Trending in AI – In a recent blog post, Anthropic’s CEO spoke on the future of AGI.

Microsoft – Microsoft U.K. CEO Clare Barclay has been appointed chair of the British government's new Industrial Strategy Advisory Council.

NVIDIA – NVIDIA’s CEO Jensen Huang says that he wants the company to have 100 million AI assistants.

AI cloning TechHeyGen now has the ability to add emotion to your avatar voices.

Meta - Meta’s Yann LeCun says worries about AI’s existential threat are ‘complete B.S.’

Google - Google has added new Gemini API parameters.

AI in Media – PlayVS has partnered with Omnic.AI, a self-service platform that helps gamers player smarter with AI feedback.

1. Adobe Launches Firefly Video Model for Generative AI 🎥

Adobe unveiled its Firefly Video Model today at the MAX conference, enabling creators to enhance their footage with generative AI. The new tools include Generative Extend, which allows users to seamlessly tweak clips by extending them up to two seconds, addressing minor issues without the need for costly reshoots.

Additionally, the Text-to-Video and Image-to-Video features let users generate short clips from text descriptions or reference images, although they currently max out at five seconds and 720p quality.

2. OpenAI Unveils Swarm Framework: A Game-Changer for AI Network 🧠

OpenAI has just released “Swarm,” an experimental framework that allows developers to create networks of AI agents capable of collaborating and executing complex tasks autonomously. While not an official product, this development has sparked discussions about the future of enterprise automation and the ethical implications of advanced AI systems.

With potential applications ranging from market analysis to customer support, Swarm could significantly transform business operations, but it also raises critical questions about job displacement and security.

3. European Commission Launches AI Pilot Project 🇪🇺

The European Commission has stepped into the AI game with its new pilot project "GPT@EC," aimed at assisting staff in drafting policy documents. This initiative follows a year of preparation and is now set to enhance efficiency by generating drafts, summarizing documents, and even brainstorming ideas, all while ensuring data security within the EU's own data center.

As the Commission continues to lead in AI regulation, this move signals a shift towards utilizing AI's potential for everyday tasks, potentially reshaping how public institutions operate.

4. Musk's Legal Challenge Against OpenAI Faces Uphill Battle 🧑‍⚖️️

Elon Musk's second lawsuit against OpenAI faces significant hurdles, as legal experts suggest his claims lack substantial backing. The entrepreneur argues that the nonprofit's shift to a for-profit model violates its original mission to benefit humanity, seeking treble damages for his earlier donations and demanding the release of GPT-4's research findings.

However, U.S. law typically offers little recourse for donors in similar situations, making Musk's chances appear slim. Despite his frustrations, particularly as he launches his own AI venture, the path ahead remains rocky, with legal analysts predicting a likely dismissal of his case soon.

5. Adobe Max Unveils Game-Changing AI Features 🧑‍🎨

Adobe kicked off its annual MAX conference with new AI features set to redefine creativity across its Creative Cloud apps. Notably, Photoshop's new "Distraction Removal" tool allows users to eliminate unwanted elements with a single click, while Illustrator introduces the innovative "Objects on Path" feature for enhanced design flexibility. These advancements aim to streamline traditionally tedious tasks, empowering users to focus more on their creative vision.

As Adobe continues to enhance its tools with generative AI capabilities, professionals in design and content creation can expect a significant boost in efficiency and output quality.

Apple Intelligence Mac Review

Apple just released it’s Apple Intelligence update!

It’s in beta right now so we’re going to show you how to install it and give a quick review on Apple Intelligence on MacOS.

Is it any good?

Find out in today's AI in 5.

No major large language model update this week, but don't think for a DANG second the AI world slowed down.

Nope.

It definitely didn’t.

A stable OpenAI's financial future is looking more distant than a far-off galaxy.

AI pioneers are snagging Nobel Prizes like they're going out of style.

The Department of Justice is giving Google the stink eye, and Tesla's dreaming of a world where steering wheels are as outdated as floppy disks.

(If you actually think you’re getting an AI-powered Cybercab for $30K by 2027, you might wanna ctrl+alt+delete that thought. lolz.)

But wait, there's more. (infomercial voice)

Microsoft's playing doctor with new AI tools, OpenAI's sounding the alarm on election meddling, and Apple researchers are calling BS on AI's supposed reasoning skills.

Even though no major fruits fell from the LLM trees, we still got plenty of juicy Generative AI news.

We’ll cut it to you straight, with a side of fresh fruit.

Let’s get sippin shorties.🧃

1 – OpenAI's Profitable Future: 2029? 💸

According to reports from The Information, OpenAI is facing potential losses of $44 billion and may not reaching profitability in 2029.

Yikes?

The company's spending is astronomical: approximately $7 billion annually on model training and $1.5 billion on staffing.

(Superstar engineers are really getting that NBA money.)

Reports show that current revenue stands at $2 billion from ChatGPT and $1 billion from access fees for large language models, totaling $3-4.5 billion annually.

Microsoft, a key investor with a $13 billion stake, is reportedly set to take a 20% cut of revenues.

What it means:

Don’t fall for the “LLM Company A/B/C is losing billions of dollars….. is Genertive AI dead?!? headlines.

Burning cash is part of the plan.

Right now, the LLM race is a race for users and retention. And those are races that OpenAI is winning without any real competition.

Don't panic about OpenAI's finances.

This is typical startup-to-profitability stuff. They're in a race for users, not immediate profits.

For businesses and consumers, it's prime time to leverage these tools while the getting's good. OpenAI can raise billions whenever they want – they'll figure out the mo

2 – AI Pioneers Bag Nobel Prize in Physics 🏆️

The world is finally giving some AI OGs their flowers.

John J. Hopfield (91) and Geoffrey Hinton (76) have been awarded the Nobel Prize in Physics for their groundbreaking AI research.

Hopfield invented the Hopfield Network in 1982, mimicking certain brain functions.

Hinton, often called the "godfather of AI," applied Hopfield's work to create networks that classify and recognize patterns in large datasets.

Without them, none of us may be reading about LLMs today or building AI-powered anything.

What it means:

AI research is probably gonna start getting the recognition it deserves, many decades later.

This is massive validation for the AI field.

It's not just tech bros playing with fancy algorithms – we're talking Nobel-level impact here. AI is changing the world in fundamental ways, and now it's got the hardware to prove it.

3 – DOJ Eyeing Google's AI Dominance 🔍

Is Google in some hot water that’ll impact its AI advantage?

The US Department of Justice is considering remedies to address Google's dominance in online search, which could significantly impact the tech giant's profitability and AI advancements.

Proposals include forcing Google to divest key parts of its business, such as Chrome and Android, restricting sensitive user data collection, and allowing websites to opt out of AI training.

Rut-roh.

Following the announcement, Alphabet's stock dropped 1.5%. Analysts warn these changes could weaken Google's revenue and provide opportunities for competitors like DuckDuckGo and Microsoft Bing.

What it means:

This could be big, y'all.

The DOJ's move could reshape the entire online landscape. For Google, it's a potential nightmare scenario. For the rest of us? It might mean more choice and privacy. But don't count Google out – they've got the resources to fight this tooth and nail.

4 – Tesla's AI-Powered Cybercab robotaxi 🚕

Tesla is getting crushed after its AI-powered Cybercab was revealed.

Tesla unveiled its AI-powered Cyber Cab robo-taxi concept, a two-seater self-driving vehicle without traditional controls like steering wheels and pedals.

CEO Elon Musk announced plans to introduce it by 2027 with a price tag under $30,000.

However, investors were unimpressed. Tesla's shares dropped 9% immediately after the announcement and are now down more than 11%.

The company also announced plans for unsupervised full self-driving capabilities in Texas and California next year for existing Model 3 and Model Y vehicles.

What it means:

Take Tesla's promises with a mountain of salt.

(Actually, we’d advise to take anything AI-related that Elon projects with a grain of salt,

Remember the Cybertruck? Announced in 2019 at $39,000, it finally shipped in late 2023 at nearly $100,000.

Don't start saving for that $30,000 Cyber Cab just yet. It's either gonna cost 3-5 times that or we won't see it this decade.

Or both.

5 – Microsoft's AI Cure for Healthcare Burnout 🏥 

Can we just please make this happen already?

Whether it’s Microsoft, Google or someone else — the U.S. healthcare system is ripe to be disrupted by AI. And we’re guessing all parties involved would welcome the change.

Microsoft has announced a suite of new healthcare data and AI tools designed to alleviate the administrative burden on clinicians.

These include medical imaging models, a healthcare agent service, and an automated documentation solution for nurses.

The company has partnered with Providence Health and Services to create a whole slide model for pathology. The healthcare agent service aims to assist with tasks like answering clinical questions and identifying relevant clinical trials.

What it means:

This could be a game-changer for the healthcare industry.

Nurses currently spend up to 41% of their time on documentation – that's wild.

By automating mundane tasks, these AI tools could free up medical professionals to focus on patient care. It's about time we leverage AI to unburden our broken healthcare system.

Let’s make this happen, everyone?

Hands in on 3.

1-2-3!

6 – OpenAI Sounds the Alarm on Election Meddling 🚨

Anything you read about the U.S. upcoming election?

Double check it to make sure it’s not AI-powered misinformation.

OpenAI has revealed that its AI models are increasingly being exploited to create fake content aimed at influencing elections.

In 2023, they neutralized over 20 sophisticated attempts to generate misleading articles and social media comments related to elections.

The US Department of Homeland Security has expressed growing concerns about foreign interference in the upcoming November 5th elections, with countries like Russia, Iran, and China potentially using AI to spread divisive information.

What it means:

Don’t share that on Facebook just yet, Aunt Nancy.

With the US election coming up in about 4 weeks, it's time to stay extra vigilant.

Double-check everything you read on social media or online, especially political content.

AI-generated images and videos are getting scary good, and by the time the general public realizes something's fake, it could be too late.

7 – Apple Researchers Challenge AI's "Reasoning" Abilities 🧠 

Shots fired.

Apple researchers have called into question the effectiveness of major large language models.

In a new research paper, they’ve developed a new evaluation tool called GSM Symbolic, which builds on the GSM8k mathematical reasoning dataset to test AI models more rigorously.

Their study tested a range of models, including Meta's Llama, Microsoft's PHI, Google's Gemma, Mistral, and OpenAI's GPT-4o and o1.

The research revealed that even top models struggle with real logic, and current accuracy scores on the GSM8k dataset are deemed unreliable. Despite high benchmark scores, OpenAI's o1 model still exhibits performance fluctuations and makes basic errors.

What it means:

This study highlights the ongoing debate about AI's true capabilities.

While companies like OpenAI claim their models can reason, Apple's researchers are saying, "Not so fast." It's worth noting that Apple's been spending big bucks trying to develop its own large language model, so there might be some competitive motivation behind this study.

As we head into 2025, expect to hear a lot more about "reasoning models" and whether AI can actually think like humans.

Numbers to watch

$10 Million

Lidwave has raised $10M to improve machine vision with on-chip 4D LiDAR

Now This …

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