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By Stephanie Palazzolo

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Recent Editions

Nat Friedman holding one of the burnt scrolls from Vesuvius he set out to decipher. Photo via YouTube/Dwarkesh Patel.

Our GPU Reseller Prediction Comes True; 2,000-Year-Old Mystery Solved with AI

By Stephanie Palazzolo · Feb 5, 2024 8:00am PST

In October we predicted that resellers of graphics processing units, an emerging class of startups that provide Nvidia’s in-demand server chips to artificial intelligence developers, would soon be in trouble. Sure enough, three months later, one of those startups is giving up.On Thursday, the startup Banana, which raised $3.4 million in funding... In October we predicted that resellers of graphics processing units, an emerging class of...

Semantiks founder Adrian Sanchez-Castro. Photo courtesy of Sanchez-Castro.

Mistral Reveals its Secret Weapon—Mark Zuckerberg; Struggling Startups Are Looking For the Exits

By Stephanie Palazzolo · Feb 1, 2024 7:00am PST · 1 comment

Meta Platforms CEO Mark Zuckerberg had a rough time testifying in Congress on Wednesday about social media’s mental health effects, but he must have cracked a smile after seeing the latest example of his company’s impact on the AI sector. For the past few months, AI founders and Meta employees have quietly speculated that Meta’s flagship... Meta Platforms CEO Mark Zuckerberg had a rough time testifying in Congress on Wednesday about...

Photos via Adobe Stock

Microsoft Dishes on AI Revenue; Google CEO Says ‘Agents’ Are Coming

By Aaron Holmes and Jon Victor · Jan 31, 2024 7:00am PST

Microsoft investors tuned into the company’s earnings call with bated breath Tuesday night, looking to see how much its new AI products were boosting sales. Microsoft didn’t deliver an unequivocal blowout—revenue in the December quarter grew moderately faster, year over year, compared to the prior quarter’s growth—but positive signs abounded... Microsoft investors tuned into the company’s earnings call with bated breath Tuesday night,...

Photo via Adobe Stock

The Rising Underdog In The Information’s AI Chip Database

By Stephanie Palazzolo · Jan 30, 2024 7:50am PST

Photo via Adobe Stock

The Rising Underdog In The Information’s AI Chip Database

By Stephanie Palazzolo · Jan 30, 2024 7:50am PST

For those overwhelmed by the flurry of new chip startups hoping to ride the AI wave, you’re in luck. This morning, we published our AI Chip Database, which tracks both the startups building these chips and those building the software to run them.There’s lots in here. For instance, we make clear whether startups are making chips suitable for... For those overwhelmed by the flurry of new chip startups hoping to ride the AI wave, you’re in...

Lina Khan, chair of the Federal Trade Commission. Photo by Michael M. Santiago/Getty Images.

Anthropic’s Antitrust Advantage

By Stephanie Palazzolo, Aaron Holmes and Maria Heeter · Jan 29, 2024 8:00am PST

As officials from Lina Khan’s Federal Trade Commission scrutinize the role that cloud providers play in OpenAI and Anthropic, one thing they should recognize quickly is that the two startups’ relationships with their big cloud-shareholders are not the same. Anthropic has a lot more independence from its shareholders than OpenAI. For... As officials from Lina Khan’s Federal Trade Commission scrutinize the role that cloud providers...

A data center in Germany. Photo by Picture Alliance/Getty Images.

The Next AI Bottleneck: Power For Data Centers

By Anissa Gardizy · Jan 25, 2024 7:00am PST

At The Information, we’ve spent a lot of time writing about artificial intelligence and the people who develop it. But at the end of the day, their ability to launch software to billions of people depends on data centers. And the availability of such facilities can’t be taken for granted.Over the past few days, I’ve rubbed shoulders with the... At The Information, we’ve spent a lot of time writing about artificial intelligence and the...

Photo via Adobe Stock.

4% of AI Startups Prioritize Social Interests in Corporate Structure

By Abubakar Idris · Jan 24, 2024 8:07am PST

OpenAI, Anthropic and Elon Musk’s xAI have drawn attention for their unconventional governance structures, ones that prioritize public interest over obligations to shareholders. But these companies are the outliers, The Information’s analysis shows, as most AI developers opt for traditional approaches that appeal to investors. Only 4 of the... OpenAI, Anthropic and Elon Musk’s xAI have drawn attention for their unconventional governance...

Photo via Midjourney.

What’s Driving AI Costs Down and What’s Driving Them Back Up

By Stephanie Palazzolo · Jan 23, 2024 7:00am PST

Photo via Midjourney.

What’s Driving AI Costs Down and What’s Driving Them Back Up

By Stephanie Palazzolo · Jan 23, 2024 7:00am PST

Developing large language models is expensive work: the costs of running LLMs in the cloud knocked out more than half of the revenue Anthropic generated last month, Maria Heeter and I reported yesterday. And that doesn’t include the cost to train its models in the first place.Recent technological advancements should make it cheaper to develop... Developing large language models is expensive work: the costs of running LLMs in the cloud...

Chart by Shane Burke.

AI Agenda: OpenAI Is a (Relative) Steal

By Stephanie Palazzolo · Jan 22, 2024 7:35am PST · 1 comment

Over the past year, we’ve seen billions in funding thrown at AI startups at eye-popping valuations. More important than the absolute valuation figures, though, is how they stack up to those startups’ revenue numbers.In the chart above, we’ve tracked the valuations of eight AI startups that have recently raised funding, calculated against their... Over the past year, we’ve seen billions in funding thrown at AI startups at eye-popping...

Photo via Unsplash/DeepMind.

Could State Space Models Kill Large Language Models?

By Stephanie Palazzolo · Jan 18, 2024 7:10am PST

The time it takes for a new technology to replace (or try to replace) an incumbent has consistently gotten shorter over time (just take a look at how long it took Google Docs to overthrow Microsoft Word versus the flurry of 15-minute grocery delivery startups that popped up following the success of companies like Instacart). That’s why nobody... The time it takes for a new technology to replace (or try to replace) an incumbent has...

Ali Ghodsi, CEO of Databricks. Photo by Bloomberg via Getty.

The Nonprofit Versus For-Profit OpenAI Powder Keg

By Stephanie Palazzolo · Jan 17, 2024 8:05am PST

It’s been nearly two months since OpenAI’s pared-down board started looking for new directors, and so far, it doesn’t have much to show for it. We have yet to see any actual board appointments, though we’ve gotten plenty of news around candidates being approached. The latest one—the CEO of an OpenAI quasi rival—is an interesting example. As... It’s been nearly two months since OpenAI’s pared-down board started looking for new directors,...

Photo via Adobe Stock.

ChatGPT Coming To an Army Near You

By Stephanie Palazzolo · Jan 16, 2024 7:00am PST

Photo via Adobe Stock.

ChatGPT Coming To an Army Near You

By Stephanie Palazzolo · Jan 16, 2024 7:00am PST

Last week, OpenAI quietly tweaked the wording in its usage policies. That seemingly simple action could have massive consequences.Most notably, OpenAI removed a previous ban on using its large language models for any military or warfare-related applications. Instead of the ban, the policies now say that OpenAI products can’t be used to “harm... Last week, OpenAI quietly tweaked the wording in its usage policies. That seemingly simple action...

OpenAI's new GPT Store. Photo via OpenAI.

OpenAI’s App Store Moment; VCs’ Love Affair with AI, By the Numbers

By Stephanie Palazzolo · Jan 11, 2024 7:10am PST

After a two-month delay, OpenAI’s long-awaited chatbot store is finally here.As I previously reported would happen, the model developer on Wednesday opened its GPT app store, which allows software developers to distribute customized OpenAI-powered apps for everything from lesson planning for middle school teachers to researching academic papers... After a two-month delay, OpenAI’s long-awaited chatbot store is finally here.As I previously ...

The Volkswagen ID. 7 on display after a presentation by Volkswagen during CES 2024 Media Days on Monday. Photo by AP.

ChatGPT’s Latest Invasion: Cars; A Threat to OpenAI’s Nonprofit Status

By Stephanie Palazzolo · Jan 10, 2024 7:00am PST

It won’t surprise anyone that artificial intelligence, the hottest subject in tech, is also big at this year’s Consumer Electronics Show, underway in Las Vegas. Among the silly and wondrous AI-powered devices unveiled so far: A one-foot-tall robot from LG that can patrol your home for open windows or switch off the lights when you’re out; a... It won’t surprise anyone that artificial intelligence, the hottest subject in tech, is also big...

Photo via Adobe Stock.

The Twelve Startups Battling For a Slice of Nvidia’s Pie

By Stephanie Palazzolo · Jan 9, 2024 7:10am PST

No company has been better positioned to profit from the generative AI boom than Nvidia, the maker of graphics processing units. But a host of rival startups developing similar chips or the software to run those chips are trying to capture some of the revenue currently being spent on GPUs. We wrote about eight of these companies in August, but... No company has been better positioned to profit from the generative AI boom than Nvidia, the...

Perplexity AI cofounders Johnny Ho, Aravind Srinivas and Denis Yarats. Photo courtesy of Perplexity AI.

This One-Year-Old Startup Is Hoping to be the Next Google—Can It Succeed?

By Stephanie Palazzolo · Jan 8, 2024 7:10am PST · 6 comments

Perplexity AI cofounders Johnny Ho, Aravind Srinivas and Denis Yarats. Photo courtesy of Perplexity AI.

This One-Year-Old Startup Is Hoping to be the Next Google—Can It Succeed?

By Stephanie Palazzolo · Jan 8, 2024 7:10am PST · 6 comments

It’s not often that a young startup takes on a 25-year-old, $1.8 trillion tech behemoth. But for Aravind Srinivas, cofounder and CEO at Perplexity AI, that’s just an average Tuesday. Perplexity is hoping to create the next Google Search, infused with generative AI. The one-year-old startup has raised $100 million to fund that mission, most... It’s not often that a young startup takes on a 25-year-old, $1.8 trillion tech behemoth. But for...

Robin AI founder and CEO Richard Robinson. Photo courtesy of Robin AI.

This Legal AI Startup’s Approach Won It Attention from Singapore

By Natasha Mascarenhas · Jan 4, 2024 7:00am PST · 2 comments

This is Natasha, doing a guest appearance on the ever fantastic AI Agenda! Legal tech is famously a graveyard of failed startups. But legal AI startups may have a better shot at turning things around.Take one-year old Harvey—supposedly named for a character in the popular legal sitcom “Suits”—which last month raised capital at a $700... This is Natasha, doing a guest appearance on the ever fantastic AI Agenda! Legal tech is...

Photo via Midjourney

Why Users Have to Compliment ChatGPT To Get the Most Out of It

By Stephanie Palazzolo · Jan 3, 2024 7:39am PST · 2 comments

If you’re not getting what you want from OpenAI’s large language models these days, try paying them a compliment. One example, according to Scale AI field CTO Vijay Karunamurthy, is to say: “you’re a very smart computer that takes a lot of time and thinks step by step to answer questions.” Remarkably, that helps Scale AI’s developers get better... If you’re not getting what you want from OpenAI’s large language models these days, try paying...

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Why the New York Times’ Case Against OpenAI is Stronger Than Sarah Silverman’s

By Stephanie Palazzolo · Jan 2, 2024 7:00am PST

As people around the world are planning out their new year’s resolutions, OpenAI is adding an ambitious one to its list too: Reaching $5 billion in annualized revenue by the end of 2024. Now, whether the model developer shares my tendency to overpromise with my new year's goals, I’m not sure. But, it’s off to a pretty good start—it recently... As people around the world are planning out their new year’s resolutions, OpenAI is adding an...

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How Artificial Intelligence Will Change in 2024

By Stephanie Palazzolo · Dec 28, 2023 7:00am PST

Photo via Midjourney

How Artificial Intelligence Will Change in 2024

By Stephanie Palazzolo · Dec 28, 2023 7:00am PST

Welcome to the last AI Agenda of 2023! Since launching five months ago, we’ve written 88 issues (wow!) covering everything from the GPU chip wars to the reckoning that young AI startups are facing. (For a summary of highlights and lowlights, check out yesterday’s issue.) Thanks for sticking with us through it all.With an upcoming election,... Welcome to the last AI Agenda of 2023! Since launching five months ago, we’ve written 88 issues...