Mehdi Chibani’s Post

Tech Trends 2024: AI and electric vehicle deals In the tech world, 2023 will perhaps be remembered as the year that generative AI went mainstream. From computer code to artwork, to essays, generative AI systems can quickly create a range of content which, while not perfect, has become an essential tool in some industries and professions. Backed by Microsoft, ChatGPT led the way with its launch in late 2022, and rivals have been piling in ever since. This month brought one of the most significant moves, when Alphabet, the owner of Google, revealed Gemini - an AI which will be integrated into Google products, including its chatbot and search engine. Alphabet claims Gemini outperforms the current version of ChatGPT. But the creator of ChatGPT, OpenAI, says it is not standing still. It is promising a more powerful version of its software next year. In November, at a conference for software developers, OpenAI chief executive Sam Altman said: "What we launched today is going to look very quaint, relative to what we're busy creating for you now." Meanwhile, investors are pouring money into the industry, hoping to back the next big player. According to PitchBook, across the globe, venture capital firms poured $21.4bn (£17.5bn) into generative AI start-up firms and that was just to the end of September. For comparison, in the whole of 2022, just $5.1bn was invested. But some are warning that we should not get too carried away. Ben Wood, chief analyst at CCS Insight, says generative AI will have a "cold shower" in 2024. "The hype has ignored, we think, a few obstacles that are just going to slow it down a bit in the short term," he says. He points out that it's very expensive to develop and run a generative AI system. It requires a lot of computing power and expensive computer chips that are in short supply. To mitigate those costs he predicts that some AI will move to hybrid systems, where some of the processing is done locally - on your laptop or phone. Mr Wood also says that regulation and legal battles might cool off the current mania for generative AI. "Firms could find they end up in a situation where they invest loads of money in an AI-powered service, and then have to roll some of it back to be compliant with the regulation." #news #technews #dailynews #dailynewsupdate #dailynewsletter #latestupdate #latestupdates

The rise of AI products in today’s market is nothing short of phenomenal. AI start-ups are generating revenue at an unprecedented rate, surpassing even some of the most hyped tech companies of the past. This rapid growth isn’t just a trend—it’s a testament to the transformative power of AI across all sectors. From education to healthcare to finance, AI is revolutionising how we operate, make decisions, and innovate. It’s not just about automation; it’s about unlocking new possibilities that were once unimaginable. The question now is, how do we harness this potential responsibly and effectively? How do you see AI impacting your industry in the next five years? What steps are you taking to stay ahead of the curve? Let’s discuss—I’m keen to hear your insights! 👇🏾 #AI #Innovation #TechTrends #DigitalTransformation #FutureOfWork https://on.ft.com/4doIZYU

Very much looking forward to getting a few AI companies on the Exchange.... These multiples are insane, but the prize is also very much outsized. I recently had a discussion on this where a person was comparing this to the internet boom and bust of the early 2000s. I think there is merit in the comparison. Where an AI company is essentially a skin of ChatGPT it can't be worth much, simply because we have already seen ChatGPT kill so many things that cropped up early and now are within GPT itself. However, there is a scale here. Artificial General Intelligence is the holy grail, of course and its applications are incalculable. So a $150 billion valuation for OpenAI? Peanuts.... I would buy in tomorrow and twice on Sunday if I could. Then there is niche specific AI, agonistic to which platform runs it. As with Exlayr AI we are able to use OpenAI, Claude, Llama or any other to complete the functions we require - so whomever develops the best functions we just switch to that. An example is Perplexity AI, it is great for research, better than ChatGPT, however its API version is shockingly bad. When they sort that out certain elements of their API we will switch...if OpenAI gets better we will use that. It will be trained on internal data and therefore useful for niche use but at the same time extremely powerful. For us, even in this niche application of AI the costs savings, time savings and expansion of revenue will be mind blowing and something that probably our shareholders have not factored in yet....😉

GOOGLE'S AI CHIEF SEES TROUBLE AHEAD FOR START-UPS The Times: The DeepMind boss Sir Demis Hassabis thinks many smaller firms will not be able to manage the new technology’s demand for computing power Many artificial intelligence start-ups are set to fail because they will not be able to manage the technology’s demands for computing power, the head of Google’s AI division has said. Sir Demis Hassabis, chief executive of Google DeepMind, was speaking weeks after the AI company Inflection, started by his old friend Mustafa Suleyman, was effectively acquired by Microsoft. Inflection, which failed to find a market for its chatbot Pi, has had its team absorbed into Microsoft and Hassabis is expecting more consolidation in the sector. He said: “Given the current direction of research … these massive models … [there] doesn’t seem to be any limit to how far you can push them. So one has to push that as hard as possible. “But you also need a lot of compute to invent the next new thing, because you have to invent that at scale … so even your experiments have to be quite big now .. new architectures, new techniques, if you want them to hold at the frontier scale. “So it’s hard to do that, whilst building a business, whilst building product and other things, if you’re a small start-up. I think that’s difficult. But I think we’ll see cycles of this.” Hassabis, a Briton who was knighted last week for services to artificial intelligence, said it was “quite surreal” to now have Suleyman, with whom he co-founded DeepMind in London, as a rival. Suleyman, 39, has been appointed as chief executive of Microsoft’s consumer AI division as part of the Inflection deal. Hassabis, 47, was also an angel investor in Inflection. The AI industry is the focus of a battle for research talent between big tech and start-ups. Meta has just poached Michal Valko, a researcher at DeepMind, thanks to the personal intervention of Mark Zuckerberg, chief executive of Meta. Hassabis said Zuckerberg had been “very aggressive” in recruiting talent. “I think Mark is probably trying to get back into AI in a big way, having been focusing on the metaverse and other things,” he said. “He’s always been very aggressive with that. “I’m very heavily involved in recruitment and always have been. It’s important to do that, and something I do well, and that’s more critical than ever.” Google has recently revamped its AI offering in the wake of competition from Microsoft’s partner OpenAI, the developer of ChatGPT. However, Google stopped its AI model Gemini from producing images in February after it appeared to be biased against white faces. Some users were angered after Gemini produced ethnically diverse Nazis, Vikings and US founding fathers and resisted producing images of “happy white people”. explore more: https://lnkd.in/gWkWGBh6 #ai #metaverse #fashion #investment

What are your thoughts regarding the state of VC, AI startups and AI's realistic return on investment? Do you agree or disagree with the thesis of this short article? Thanks! https://lnkd.in/gSukQtiM #AI #ChatGPT #OpenAI #Google #Gemini

AI led to a new wave of billionaires in the industry heaving values for both public and private companies . The share prices of tech companies, both established and emerging, have surged over the last year, resulting in an increase in the wealth of the world's tech tycoons and the addition of over a dozen new AI billionaires to Forbes' list of World's Billionaires. #wealthdigest #money #AI #billionaires https://lnkd.in/ensmpCbZ

Asset prices are bound to have booms and busts, but sometimes expectations can drive prices well above their fundamental value. That's what we're seeing now - lots of potential, but also over-valuation. 🚀 🌐 Stage One: Displacement No doubt about it, the emergence of ChatGPT marked a significant shift because machine learning was no longer an abstract concept for professional services and other tech companies, but a consumer technology like the iPhone. "It was ChatGPT wot dunnit," comments the author. This discovery phase sparked widespread interest and set the stage for rapid expansion in the AI sector. 💥 Stage Two: Boom With Microsoft's early investment in OpenAI, the stage was set for intense competition. This move was seen as an attempt to make competitors like Google "dance," according to Satya Nadella. The resulting scramble saw Google hastily release its Bard chatbot, illustrating the fierce rivalry and frantic pace of development in AI. 🎉 Stage Three: Euphoria Companies are pouring vast sums into AI, driven by a belief in endless growth. Sam Altman of OpenAI talked ambitiously about raising "$7tn from Middle Eastern petrostates" for projects like the Stargate supercomputer, demonstrating the high-stakes environment of AI investment. 💸 Stage Four: Profit-Taking Despite the massive investments, actual returns are elusive for many involved, except for hardware producers like Nvidia. "Generative AI turns out to be great at spending money, but not at producing returns on investment," commented the author. (To be fair, I don't think that's an accurate criticism, but certainly some of the concern is valid - many GenAI applications don't have a clear use-case and/or reliable output.) 📉 Stage Five: Panic The final stage, panic, remains on the horizon. Potential triggers for a market crash could range from regulatory crackdowns to environmental concerns over AI's impact. The realization that "nothing grows exponentially forever" could precipitate a rapid reevaluation of AI's sustainable value. 🔍 But the question is how do we proceed from there and what's the new equilibrium? Bubbles are inevitably going to emerge, but the critical takeaway for investors, policymakers, and tech enthusiasts is to approach the AI boom with cautious optimism and a critical eye toward sustainable and ethical growth. #AIBubble #TechInvestment #ChatGPT #AI #Microsoft #OpenAI #GenerativeAI #TechnologyTrends #MarketAnalysis https://lnkd.in/ehFHB8jB

Elon Musk announces that xAI will be integrated into X, but will also be available as a standalone app. xAI's first bot, Grok, aims to create AI tools that 'assist humanity in its quest for understanding and knowledge', but supposedly does so with a bit of wit. We're not exactly sure what this means yet, but we'll all soon find out. Read more below: https://lnkd.in/esvw_D5m #ai #artificialintelligence #tech #technology #machinelearning #elonmusk #xai #grok

AI has never been cheap. GPT-4? If you run on GPT, your AI model is not really yours. "Sam Altman’s goal of raising about $7 trillion to make artificial-intelligence chips tells a story beyond his borderline-insane ambitions. First, the infrastructure needed to build AI has become exorbitantly expensive. Second, most of that value is still — still! — held by a handful of large technology companies — and the oligopoly is only going to get worse." For example - "Take Sasha Haco, the chief executive officer of Unitary, which scans videos on social media for rule-breaking content. It would cost her company 100 times more than it charges clients to subscribe to OpenAI’s video-scanning AI tools. So Unitary makes its own models, which is a high-wire balancing act in itself. Her startup needs to rent access to those rare AI chips via cloud vendors like Microsoft Corp. and Amazon.com Inc.’s Amazon Web Services." I guess that takes trillions. "Unitary makes it work, but Haco admits that no generative AI startup has figured out how to run a low-cost business at scale, at least not in the same way that large tech firms have." Another AI founder in San Francisco tells me that some of his peers who have to rent AI chips and cloud computing find that the only way they make money “is if people don’t use the product.” Here is the point that many people are starting to figure out, OpenAI is a great sampler; once you decide to enter the game ... you realise that the barriers to entry is super expensive, to achieve a vague outcome. "Generative AI startups can build their technology in two different ways. They can develop their own version of OpenAI’s GPT-4 or Google’s Gemini for instance, a so-called foundation model that requires hundreds of millions of dollars in investment. Or they can build on top of an existing model, which only needs tens of millions in investment and which the vast majority of AI startups do today." So the peak AI is almost here, and the bubble for AI startups is about to pop.

  Microsoft takes AI to the next level with a dedicated company, Microsoft AI. This bold move signals Microsoft's commitment to shaping the future of AI innovation. A standalone company suggests a focused push for accelerated development, potentially leading to groundbreaking solutions for businesses and individuals. What does this mean? Rapid advancements: Anticipate faster iterations and new AI capabilities. Specialised solutions: Expect a greater emphasis on industry-specific AI applications. Increased competition: The AI landscape just got even more dynamic! https://lnkd.in/gQWH5tPe