OpenAI Eyes $90B Valuation, Dives into AI Hardware
Plus: Vectara's Boomerang redefining GenAI accuracy, Google's 25-year AI journey.
Hello Engineering Leaders and AI Enthusiasts!
Welcome to the 113th edition of The AI Edge newsletter. This edition brings you OpenAI’s latest moves.
And a huge shoutout to our incredible readers. We appreciate you! 😊
In today’s edition:
💰 OpenAI eyes $90B valuation, dives into AI hardware
🚀 Vectara launches Boomerang, the next-gen LLM redefining GenAI accuracy
🎉 Google's 25-year AI legacy guides its future AI innovations
📚 Knowledge Nugget: Why Open Source AI Will Win by
Let’s go!
OpenAI eyes $90B valuation, dives into AI hardware
OpenAI is in discussions to possibly sell shares, a a move that would boost its valuation from $29 billion to somewhere between $80 billion and $90 billion, according to a Wall Street Journal report citing people familiar with the talks.
(Source)
In other news, Apple's former design chief, Jony Ive, and OpenAI CEO, Sam Altman, have reportedly been discussing building a new AI hardware device. It is unclear what the device would be or if they will build it, but the duo has been discussing what new hardware for the AI age could look like.
(Source)
Why does this matter?
This valuation could provide OpenAI with significant resources to advance AI research and development, perhaps even in hardware. Indeed, if OpenAI explored advancements in AI hardware, it could meet the demand for efficient, specialized hardware to power AI applications that are growing significantly.
Vectara launches Boomerang, the next-gen LLM redefining GenAI accuracy
Outpacing major competitors, Boomerang sets a new benchmark in Grounded Generative AI for business applications. It is a next-generation neural information retrieval model integrated into Vectara's GenAI platform.
Boomerang surpasses Cohere in benchmark performance and matches OpenAI on certain metrics, excelling particularly in multilingual benchmarks. Notably, it prioritizes security, reducing bias, copyright concerns, and "hallucinations" in AI-generated content. It also offers cross-lingual support for hundreds of languages and dialects and improves prompt understanding, leading to more accurate and faster responses.
Why does this matter?
Vectara's Boomerang empowers businesses to build AI applications, especially conversational AI, with ease and security, making GenAI more accessible and reliable for enterprise adoption.
Google's 25-year AI legacy guides its future AI innovations
On its 25th birthday, Google reflected on its two-and-a-half decades of pioneering achievements in the field of AI. It started in 2001 using a simple ML to suggest better spellings for web searches.
A standout moment in 2023 was the introduction of PaLM 2 and Gemini. It is now looking forward to these models driving the next quarter-century of its AI advancements.
Why does this matter?
AI has been a big deal at Google since its earliest days, which predates the emergence of players like OpenAI with ChatGPT. Google's contributions to AI have had a profound impact not only on its own products and services but have also set industry standards and inspired innovation. Let’s see if it endures its legacy in today’s highly competitive AI landscape.
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Knowledge Nugget: Why Open Source AI Will Win
As the AI landscape continues to evolve, a crucial future-defining question looms over us: Open or Closed AI?
believes that open source will have more of an impact on the future of LLMs and image models than the broad public believes. In this article, he lists some interesting arguments against open source that he thinks hold little water. He goes on to advocate for open source’s continued growth and adoption.
It also emphasizes their suitability for business-critical applications, their capabilities, control, and customization benefits, as well as their potential for ensuring privacy, security, and reliability.
Why does this matter?
The article challenges the notion that closed-source AI models will dominate the future. It argues that open-source AI models, with their advantages in control, customization, and reliability, will play a significant role in shaping the AI landscape, particularly for business-critical applications.
(Source)
What Else Is Happening❗
🤖SAP launches its own enterprise AI assistant, Joule
Built into the entirety of SAP’s extensive cloud enterprise suite, Joule will allow customers to access it across SAP apps and programs, similar to Microsoft’s new Windows Copilot. It will also be available across computing platforms, on desktop and mobile. (Link)
🚀Microsoft uses AI to boost Windows 11 security, pushes for passwordless future
It announced new enterprise security features that use AI to help defend Windows 11 against increasingly sophisticated cyberattacks. The new AI capabilities may reduce security incidents by 60% and firmware attacks by 300%. (Link)
🛍️Shopify releases SDXL background replacement tool for product imagery- It is a super helpful tool that can create a whole new reality around your product. Its public HF Space is under the official Shopify account. (Link)
🤝Infosys ties with Microsoft for industry-wide adoption of generative AI
The collaboration aims to develop AI solutions, leveraging Infosys Topaz, Azure OpenAI Service, and Azure Cognitive Services. The integrated solutions will enhance enterprise functions and accelerate the democratization of data and intelligence. (Link)
🎬Hollywood studios can train AI models on writers’ work under tentative deal
Writers are expected to be guaranteed credit and compensation for work they do on scripts, even if studios partially use AI tools. (Link)
That's all for now!
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AI is a bubble. These valuations are silly.