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Nvidia is buying an Israeli AI software startup that makes AI chips more efficient

Also: Mark Zuckerberg defends Meta’s AI spending spree as shares tumble

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AI KATANA
April 24, 2024

Hi!

Today’s top AI news highlights several major moves in the AI industry, led by Nvidia's acquisition of the Israeli startup Run:ai for $700 million to optimize AI chip efficiency. Meanwhile, Meta, despite a share price drop, is intensifying its AI investments under Mark Zuckerberg’s vision, aiming to transform its social platforms with advanced AI technologies. In the retail sector, 7-Eleven Japan partners with Sony to deploy AI vision technology for better customer insights, while in the UK, regulatory bodies are scrutinizing AI-focused partnerships involving giants like Microsoft and Amazon for potential competitive concerns. On a global scale, Chinese AI leader SenseTime experiences a surge in share prices following its updated large language model launch, emphasizing the market's strong interest in AI advancements. Additionally, HubSpot introduces new AI-powered tools to improve marketing and customer service efficiencies, and the venture capital scene is abuzz with the launch of Augment, a new AI-driven coding platform backed by heavyweights including Eric Schmidt, promising to redefine programming productivity.

Sliced:

  • 💰 Nvidia is buying an Israeli AI software startup that makes AI chips more efficient

  • 📉 Mark Zuckerberg defends Meta’s AI spending spree as shares tumble

  • 🏪 7-Eleven Japan gets Sony AI vision detection for buyer insights

  • 👀 Microsoft's and Amazon's AI partnerships draw UK watchdog scrutiny

  • 📈 Chinese AI giant SenseTime suspends trading as shares surge more than 30% after launch of updated large language model

Nvidia is set to acquire the Israeli AI startup Run:ai for approximately $700 million, aiming to enhance the efficiency of AI chips used across various technologies. Run:ai, established in 2018, specializes in software that optimizes the deployment of AI applications by enabling the simultaneous use of multiple GPUs. This acquisition promises to leverage Run:ai’s existing partnerships with major tech firms like Microsoft and Amazon, and enhance Nvidia's capacity to offer more efficient computing power for AI tasks. This deal not only boosts Nvidia's capabilities in the AI sector but also continues its growth trajectory following its significant acquisition of Mellanox Technologies in 2019. Run:ai's integration into Nvidia will likely fortify the latter's position as a leading supplier of GPUs to powerhouse tech companies and expand its influence in the AI-driven technological landscape.

Mark Zuckerberg's commitment to transforming Meta into a premier AI entity, despite its share price dropping by over 15% following an after-hours earnings announcement, underscores a strategic push towards incorporating AI technologies across its platforms like Facebook, Instagram, and WhatsApp. This initiative is part of a broader plan to boost user engagement through AI-driven chatbots and other tools. Meta's financial disclosures revealed a 27% increase in revenues to $36.5 billion for the first quarter of 2024, aligning slightly above market forecasts. However, the projected surge in capital expenditure—from last year's $28.1 billion to between $37 billion and $40 billion—aims to enhance infrastructure for AI advancements, despite the potential for increased operational costs and investor skepticism about fiscal prudence amidst challenging economic conditions.

🏪 7-Eleven Japan gets Sony AI vision detection for buyer insights

7-Eleven Japan has enhanced its customer interaction analytics by incorporating Sony's AI vision detection technology into its stores. This deployment focuses on optimizing how shoppers engage with digital signage within the retail environment. Sony's edge AI devices are strategically placed to collect data on customer behaviors, such as the number of people who view the signs and the duration of their engagement. Importantly, the system prioritizes privacy by ensuring that no personally identifiable images are recorded or outputted. Instead, it processes metadata on customer interactions, which is then analyzed to provide insights into consumer behavior patterns.

The UK's Competition and Markets Authority (CMA) is currently scrutinizing AI partnerships and hiring practices involving major tech companies, notably Microsoft and Amazon. This investigation follows Microsoft's recent strategic hires from the AI startup Inflection AI and its establishment of a new consumer AI unit led by DeepMind co-founder Mustafa Suleyman. Similarly, Amazon's collaboration with AI firm Anthropic is under review. The CMA is gathering input to determine if these alliances and recruitment strategies could potentially breach UK merger regulations or stifle competition. Despite the regulatory attention, Microsoft maintains that its practices, which include hiring key talent and making fractional investments in AI startups, foster competition and differ fundamentally from mergers, signaling confidence in its compliance with business norms amidst evolving regulatory landscapes.

SenseTime, a leading AI company in China, saw its shares soar by more than 30% following the announcement and launch of its updated large language model, SenseNova 5.0. This significant market response prompted the company to suspend trading of its shares. The event was highlighted at SenseTime’s Tech Day in Shanghai, where co-founder, chairman, and chief executive Xu Li showcased the advancements of the new AI model. The surge in SenseTime's stock underscores the market's strong interest and optimism in the company's innovative capabilities and its potential impact on the tech industry. This development occurs amidst a broader context of technological competitiveness and strategic maneuvering within the global AI sector, reflecting both the company's robust position in the market and the critical role AI technology continues to play in shaping economic and technological landscapes.

🛠️ AI tools updates

HubSpot has launched new AI-powered tools aimed at enhancing the productivity of marketing, support, and customer success teams. These innovations are designed to streamline various functions such as advertising campaign creation, performance measurement, and other related activities. HubSpot, a major software-as-a-service provider listed on the NYSE, is renowned for its Marketing Hub among other platforms that serve professionals in sales and customer support. The introduction of these AI tools marks a significant shift in how customer-facing teams operate, responding to evolving technology and customer expectations.

💵 Venture Capital updates

Augment, a new AI-driven coding platform, has emerged from stealth with substantial backing, launching with $252 million in funding and a valuation just shy of $1 billion. Supported by influential figures like former Google CEO Eric Schmidt and venture capital firms such as Index Ventures and Lightspeed Venture Partners, Augment is poised to compete with existing tools like GitHub Copilot. Founded by ex-Microsoft developer Igor Ostrovsky, Augment aims to address common industry frustrations such as software fragility, complexity, and maintenance burdens. By enhancing software quality and team productivity, Augment aspires to revitalize the enjoyment and efficiency of programming.

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