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Alphabet bets on generative AI as cloud boosts Q2 revenue

Also: Netflix lists $900,000 AI job as actors and writers continue to strike

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AI KATANA
July 27, 2023

Hi!

In today's round-up, we're delving into the escalating role of generative AI in shaping the business landscape. Alphabet Inc. has reported impressive Q2 results, thanks to a 28% surge in Google Cloud's revenue. The power of generative AI is also recognized by Netflix, which amid Hollywood strikes, is turning to AI for content creation and production optimization. Meanwhile, the Frontier Model Forum, a newly established industry body comprising Anthropic, Google, Microsoft, and OpenAI, promises responsible development of frontier AI models. Lastly, Amazon is making waves with its AI services under Amazon Bedrock, luring numerous customers away from competitors like Microsoft and Google. Stay tuned for the latest on AI tools, venture capital updates, and more. Let's delve into these stories in more detail.

Sliced:

  • ☁️ Alphabet bets on generative AI as cloud boosts Q2 revenue

  • 🍿 Netflix lists $900,000 AI job as actors and writers continue to strike

  • 🦾 OpenAI, Google, Microsoft, and Anthropic Establish Frontier Model Forum to Advance Responsible AI Development

  • 📦 Amazon has drawn thousands to try its AI service competing with Microsoft, Google

Alphabet Inc. reported a 7% YoY increase in Q2 revenue, driven by a 28% surge in Google Cloud's revenue despite global economic uncertainty. The company's total revenue reached $74.6 billion, with net income rising to $18.36 billion from $16 billion in the same period last year. Google Cloud achieved a notable turnaround, posting an operating profit of $395 million compared to a loss of $590 million in the prior year. This improvement was attributed to advances in data center machine efficiency. Additionally, Alphabet's CEO, Sundar Pichai, highlighted that their new generative AI offerings, a key contributor to Google Cloud's growth, have expanded their market reach and attracted new customers. Over 70% of generative AI unicorns, including Cohere, Jasper, and Typeface, are Google Cloud customers. Plans are in place to infuse more generative AI capabilities across various offerings like Search, Google Ads, and Google Workspace.

As Hollywood strikes persist, Netflix has posted a job listing for a machine learning platform product manager with an annual salary ranging from $300,000 to $900,000. This move comes amidst debates on the role of AI in future entertainment, a topic of contention for the striking actors and writers. Netflix plans to utilize AI to generate content and optimize production across all areas of their business, and is also recruiting for a technical director for generative AI in its gaming studio, with an annual salary of up to $650,000. These initiatives coincide with the rejection by striking actors of a proposal from the Alliance of Motion Picture and Television Producers (AMPTP) to pay performers a one-time $200 day rate for scanning their likeness for future AI-enhanced CGI use with no ongoing consent or compensation required.

Anthropic, Google, Microsoft, and OpenAI have joined forces to establish the Frontier Model Forum, an industry body aimed at promoting safe and responsible development of frontier AI models. The forum is dedicated to advancing AI safety research, identifying best practices for these models, sharing knowledge with various stakeholders including policymakers and academics, and fostering efforts to use AI to tackle society's most significant issues. Open to other organizations committed to the development and safety of frontier models, the Forum will focus on three key areas in the coming year: promoting knowledge sharing and best practices, supporting AI safety research, and establishing trusted mechanisms for sharing information. The initiative is complemented by an Advisory Board to guide strategy and priorities, with representatives from diverse backgrounds and perspectives.

Amazon's cloud division is attracting numerous customers to its artificial intelligence (AI) services as it competes with rivals Microsoft and Google. Amazon Bedrock, announced in April, allows businesses to build applications with a variety of AI models and has been tested by organizations such as Sony, Ryanair, and Sun Life. The company's AI services include new tools for creating more conversational customer-service agents, a healthcare system for generating clinical notes, and access to technology from startups Cohere, Anthropic, and Stability AI. Amazon aims to be distinguished by offering a wider range of AI models and hosting customer data as the largest cloud provider by revenue. Amazon Bedrock is expected to be available to any customer soon, following resolutions to issues around cost allocation and enterprise controls.

🛠️ AI tools updates

Rewind is a personalized AI tool that integrates with your Mac and iPhone, recording and making all your content searchable. Its capabilities range from automating note-taking and generating human-level summaries of your meetings, which can be shared effortlessly with your team, to backing up all data, ensuring no lost work in case of a system crash. Not only does it serve as a safety net for all your information, but it also acts as an AI assistant that uses the power of GPT-4 to find details, draft emails, and summarize all captured information, saving you time and effort. This omnipresent AI assistant ensures a seamless workflow with no data concerns, making it a powerful tool for productivity.

💵 Venture Capital updates

Bengaluru-based venture capital firm, Together Fund, has announced the first closure of its second early-stage fund, Together Fund II, worth $150 million. The fund will focus on SaaS and AI startups, investing between $1 million and $5 million in seed and Series A rounds. Launched by Girish Mathrubootham, Manav Garg, Shubham Gupta, and Avinash Raghava, Together Fund claims to be a founder-first VC firm and has so far engaged with over 1,700 startups in diverse sectors. Despite challenging market conditions, Together Fund II has attracted interest from institutional investors in the US and Asia. The VC firm has already invested in three generative AI companies in the healthcare, developer infrastructure, and modern marketing sectors over the last three months.

🫡 Meme of the day

⭐️ Generative AI image of the day