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OpenAI Launches ChatGPT-Powered Search Engine

Also: How xAI and NVIDIA Built the World’s Largest AI Supercomputer

Morning!

OpenAI has officially launched an AI-powered search engine integrated within ChatGPT, aiming to rival Google by delivering real-time, contextual search results. Meanwhile, Elon Musk’s xAI, in collaboration with NVIDIA, has constructed "Colossus," the world's largest AI supercomputer, and is seeking a $40 billion valuation in new funding. In the legal realm, News Corp has filed a copyright lawsuit against AI startup Perplexity, marking a significant moment for content ownership in AI. Apple also enters the AI race, enhancing its latest iPhones with AI-driven features in iOS 18. Google Maps adds AI functionalities via its Gemini chatbot to improve navigation, while the AI startup Sierra secures $175 million in funding, reaching a $4.5 billion valuation, showcasing the ongoing investor enthusiasm for AI innovation.

Sliced just for you:

  • 🔍 OpenAI Launches ChatGPT-Powered Search Engine

  • 💻 How xAI and NVIDIA Built the World’s Largest AI Supercomputer

  • 📈 Elon Musk's xAI Startup Seeks $40 Billion Valuation

  • ⚖️ News Corp Sues AI Startup Perplexity Over Copyright Infringement

  • 🍏 Apple Introduces AI Features in iOS 18

OpenAI has launched a new search tool integrated into ChatGPT, poised to compete with Google by offering an AI-powered alternative for information retrieval. Initially available to paid users, the tool is expected to roll out to all users soon. This search feature allows ChatGPT to pull in real-time data, including news and other online content, making the AI’s responses more accurate and up-to-date. The integration could disrupt traditional search engines by providing more contextual and conversation-based search results, potentially reshaping the way people search for and interact with information online.

Elon Musk's xAI, in collaboration with NVIDIA, has constructed Colossus, the world’s largest AI supercomputer, housed in Memphis, Tennessee. Utilizing over 100,000 NVIDIA H100 Tensor Core GPUs, Colossus is poised to double in capacity with the integration of next-gen H200 GPUs, pushing it to a groundbreaking 200,000 units. Designed specifically to support xAI’s Grok language models and a high-capacity chatbot for X Premium subscribers, this supercomputer exemplifies the fusion of advanced processing power and efficient, large-scale AI model training. Colossus leverages NVIDIA's Spectrum-X Ethernet networking, enabling high data throughput and minimal latency essential for AI workloads. Remarkably, xAI and NVIDIA operationalized Colossus in just 122 days, with model training commencing within 19 days—a speed unprecedented in supercomputing. NVIDIA’s hardware, including liquid-cooled HGX H100 platforms, drives the system’s efficiency, while Spectrum-X’s unique data management keeps it operating seamlessly.

xAI, the artificial intelligence company founded by Elon Musk, is reportedly in discussions to raise new funding, with the company now valued at around $40 billion—nearly double its value from just five months ago. xAI’s AI chatbot, Grok, is in development, and the company also plans to expand its infrastructure with a new data center in Memphis. However, xAI faces a tough competitive landscape with established players like OpenAI and Google dominating the market. Musk’s venture, however, aims to differentiate itself with ambitious goals and unique technology that, he believes, could challenge the leading AI companies.

News Corp entities, including Dow Jones and The New York Post, have filed a lawsuit against AI startup Perplexity, claiming that it used their content without permission in its AI-generated responses. The legal action seeks not only an injunction against the use of their content but also demands that Perplexity destroy any databases that include News Corp’s copyrighted material. This case underscores a larger issue where news publishers are increasingly challenging AI companies over copyright, given that many AI systems train on vast amounts of published content. The outcome of this case could shape future legal boundaries between publishers and AI firms.

Apple has released a free update to iOS 18, bringing AI capabilities to iPhone 16 models and last year's iPhone 15 Pro and Pro Max. This update enhances Siri's functionality, making it more conversational and versatile. The iOS 18 update introduces writing and proofreading tools, email summarization, photo editing, and easier photo searches. Future updates will include features like on-the-fly customized emojis and enhanced imagery via OpenAI's ChatGPT. For privacy, Apple's AI processes will either run on devices or in secure data centers. The update isn't available outside the U.S. until next year. Demand for the new AI-enabled iPhones is predicted to spike, boosting Apple's market value by $500 billion since June. Apple aims for a $4 trillion market valuation, spurred by this AI transition in its product lineup. AirPods also receive an update, allowing them to function as hearing aids.

🛠️ AI tools updates

Google has integrated its Gemini AI chatbot into mapping applications, including Google Maps, to enhance search results and process open-ended queries more accurately. Gemini can understand context, such as time of day or season, providing tailored options for activities. This initiative aims to reclaim Google's lead in AI development, previously ceded to competitors like Microsoft-backed OpenAI. Google Maps, with over 2 billion monthly users, will see Gemini-generated summaries displayed alongside existing listings. Additionally, new AI features are introduced in Google Earth and Waze, allowing quicker analysis for developers and urban planners and enabling voice-based incident reporting for drivers.

💵 Venture Capital updates

Sierra, an AI startup co-founded by former Salesforce co-CEO Bret Taylor, has raised $175 million in funding, elevating its valuation to $4.5 billion. The round, led by Greenoaks Capital with participation from Thrive Capital and Iconiq, underscores strong investor interest despite AI bubble concerns. Launched a year ago, Sierra specializes in AI-powered customer service chatbots and counts WeightWatchers and Sirius XM among its clients.

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