The rise of AI factories 🚀

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OpenAI began working on Arrakis, an AI model designed to run applications more efficiently, soon after the launch of ChatGPT. However, in a rare setback, the project has failed.

⏰ Top 5 Headlines

🔗Link: OpenAI CEO Sam Altman downplayed the rumors that he’s working on an AI-powered device with former Apple design boss Jony Ive.

🔗Link: AI will never threaten humans, says top Meta scientist.

🔗Link: Nvidia and iPhone maker Foxconn to build AI factories. (More below)

🔗Link: China expected to attend UK summit on artificial intelligence next month.

🔗Link: Fugees’ Pras Michél says lawyer bungled his case by using AI to write arguments.

💬 Deeper Dives

Get ready for 'AI factories'

Nvidia and Foxconn's AI factory collaboration: Nvidia is expanding its partnership with Foxconn to establish "AI factories," specialized data centers powered by Nvidia's GPUs and CPUs. The AI factories aim to advance the development of autonomous machines, including industrial robots and self-driving cars, as well as provide generative AI services comparable to OpenAI's ChatGPT.

Rise of AI factories amid industry boom: Major technology companies like Nvidia and Microsoft are investing billions in AI-focused data centers, anticipating a $1 trillion investment in the AI sector over the next five years. Concerns about the environmental impact of AI data centers are growing, with studies indicating substantial energy consumption and water usage, raising questions about sustainability in the rapidly expanding field of generative AI.

AI's hype balloon fills with investor helium

AI investment hype soars amidst skepticism: Despite AI's limited current profitability, influential voices like Cathie Wood predict a tripling of the global stock market to $300 trillion by the end of the decade, fueled by AI. However, skepticism grows as the gap widens between grand predictions and the sector's tangible financial gains.

AI's extreme predictions clash with practical realities: The AI investment frenzy, reaching $17.9 billion in Q3, contrasts sharply with the caution expressed by those directly involved in machine learning. While venture capitalists like Wood dominate with inflated projections, AI practitioners on the ground stress the day-to-day challenges of realizing such ambitious promises, creating a discord between expectations and realities in the AI landscape.

Microsoft's new AI assistant can go to meetings for you

Microsoft is set to launch a ChatGPT-style AI assistant, embedded in its office apps, accessible to all users starting November 1. Named Microsoft 365 Copilot, the assistant can summarize Teams meetings for absent participants, draft emails, and create various documents and presentations almost instantly. While Microsoft aims to alleviate workplace monotony, concerns have arisen over the potential replacement of human workers and the risk of businesses becoming overly reliant on AI. Additionally, questions about compliance with new AI regulations in Europe and China have surfaced, with Microsoft emphasizing user responsibility in clarifying AI usage.

Stanford researchers issue AI transparency report, urge tech companies to reveal more

Stanford researchers, including Professor Percy Liang, issued a report urging tech giants like OpenAI and Google to enhance transparency in their AI foundation models. The Foundation Model Transparency Index revealed a universal lack of transparency over the last three years, with potential risks highlighted in line with negative outcomes seen in other sectors.

The report evaluated 10 popular AI models, showing a consistent lack of transparency. Even the most transparent, Meta's Llama 2, scored only 53 out of 100, while Amazon's Titan ranked lowest at 11. OpenAI's GPT-4 scored 47. The authors hope the findings will prompt companies to disclose more information, serving as a starting point for governments grappling with regulating the rapidly evolving field of generative AI.

🤳 Extra reads

• Microsoft to train 1 million people in UK with AI digital skills.

• AI models can analyze thousands of words at a time. A Google researcher has found a way to increase that by millions.

• The 3 skills you need to have to grow your career in the age of AI, according to Databricks VP.

• As Google pushes deeper into AI, publishers see fresh challenges.

• DeepMind wants to use AI to solve the climate crisis.

• AI is resurrecting the dead, with or without permission.

• Walmart releases responsible AI principles.

The team behind today’s issue: Lavena Xu-Johnson, Hubert Trinkunas and Rosa Cecilia.