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- AI's green warning 🌎
AI's green warning 🌎
...AI's hidden cost: Energy use rivals the Netherlands...
Welcome to AI Creator! đź‘‹
A new study warns that the AI industry could match the energy consumption of the Netherlands by 2027, with big tech firms, racing to integrate AI-powered services, currently utilizing significantly more power than conventional applications, raising concerns about the environmental impact. (Read more on this below)
⏰ Top 5 Headlines
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Image: Adobe
đź”—Link: Adobe created a symbol to encourage tagging AI-generated content.
đź”—Link: Klarna launches a suite of new features, including an AI-powered image-search tool.
đź”—Link: AMD plans to buy software company Nod.ai as part of its strategy to compete against Nvidia.
đź”—Link: Researchers, activists try to get ahead of AI-driven election misinformation.
đź”—Link: TikTok now supports direct posting from AI-powered Adobe apps, CapCut, Twitch and more.
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đź’¬ Deeper Dives
AI doesn’t sound particularly profitable
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/1b4610ac-4d4d-4bab-b71e-87b474edbddc/Screenshot_2023-10-11_at_12.53.39.png)
Image: Emil Lendof / iStock
Tech giants like Microsoft, Google, and Adobe are investing heavily in generative AI tools, but the profitability of these ventures remains uncertain. The high operational costs, driven by the need for powerful servers and expensive chips, pose a financial challenge. Microsoft, for example, faced losses with its GitHub Copilot, a generative AI tool for code, as operating costs exceeded user subscription fees.
Monetization strategies and future outlook: Companies are experimenting with various monetization strategies for AI, including higher subscription fees and usage caps. Microsoft and Google are introducing AI-infused software upgrades with additional charges, while Adobe uses a credit system to manage costs. The industry anticipates generative AI costs to decrease over time with technological advancements. However, the current uncertainty around profitability has led to investor caution despite the overall enthusiasm about AI's potential, signaling a critical evaluation of costs in the near future.
The environmental impact of the AI revolution is starting to come into focus
In a recent analysis, it's been suggested that if Google's search utilized AI models similar to ChatGPT, the energy consumption could rival that of a small country, with projections pointing to Ireland. The study, published in the journal Joule by researcher Alex de Vries, indicates that integrating generative AI into Google Search could amplify its energy usage over tenfold, raising concerns about the environmental impact. With generative AI demanding robust servers, worries arise over potential surges in data centers' energy consumption and carbon footprint. Despite reassurances from Google about energy efficiency and sustainable practices, the analysis prompts a call to action to monitor and manage the burgeoning energy demands of AI technology. (Read more)
Adobe adds more AI models to its palette
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Image: Adobe
Adobe unveiled innovative AI models, including the groundbreaking Firefly Vector Model, capable of generating vector-based illustrations for versatile resizing. The Firefly suite, designed to enhance rather than replace professional designers, introduces practical features like the Firefly Design Model integrated into Adobe's Express tool and an updated Firefly Image Model 2, boasting higher resolution and a Generative Match feature for style incorporation.
Project stardust and future outlook: As part of its forward-looking approach, Adobe teased Project Stardust, utilizing AI to simplify photo editing by recognizing key objects. The product manager, Aya Philémon, emphasized its potential to empower individuals without advanced editing skills while streamlining tasks for experienced users. Adobe's strategic focus is on harnessing generative AI within existing workflows, maintaining commercial safety, and outpacing competitors.
PC industry looks to generative AI for sales boost
PC shipments are still down, but the decline has slowed with analysts like IDC’s Linn Huang expressing optimism about more expensive “AI PCs” on the horizon:
“Generative AI could be a watershed moment for the PC industry. While use cases have yet to be fully articulated, interest in the category is already strong.”
That’s good news for Microsoft and Intel with Windows 12 and Meteor Lake / Arrow Lake just around the corner.
🧰 Startups
🤳 Extra reads
Will OpenAI really build its own chips? (Tech Monitor)
AI, social media drive democracies to a tipping point. (Axios)
Does it matter to you if AI makes a work of art you love? (WSJ)
Even Google insiders are questioning Bard AI chatbot’s usefulness. (Bloomberg)
The team behind today’s issue: Lavena Xu-Johnson, Hubert Trinkunas and Rosa Cecilia.