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In this edition, we take an in-depth look at Microsoft's ambitious MAI-1 project, a massive language model that is set to rival offerings from industry giants such as Google, Anthropic, and OpenAI.

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TODAY’S AI SECRET:

• Microsoft is preparing a new AI model to rival Google and OpenAI.

• Apple building M2 Ultra and M4-powered AI servers.

• Daily trending & featured AIs boost your career and business.

• Biden offers $285M for digital twin chip institute.

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TODAY’S AI WORLD

• Self-Driving AI - Wayve raises $1B to take its Tesla-like technology for self-driving to many carmakers.

• AI in The Election - Brad Parscale, the digital campaign operative who helped engineer Donald Trump’s 2016 presidential victory with the heavy use of Facebook ads, is now back working for Trump and is an evangelist for AI.

• The AI Music Era - AI songwriting has gotten shockingly good and with big implications for the music world.

• Pinterest AI - Pinterest CEO Bill Ready highlights the use of AI for positive user experiences and the platform's impressive first quarter earnings.

MICROSOFT

Microsoft is preparing a new AI model to rival Google and OpenAI.

Microsoft is currently working on MAI-1, a large language model designed to challenge offerings from Google, Anthropic, and OpenAI. With 500 billion parameters, this project surpasses Microsoft’s previous open-source models, necessitating a greater investment in resources for its development.

The Details:

• Model Size and Development: MAI-1, with its impressive 500 billion parameters, will be significantly larger and more resource-intensive compared to previous Microsoft models.

• Infrastructure and Data: The training process involves reserving Nvidia GPU servers and leveraging public web data and ChatGPT as part of its dataset.

• Leadership and Partnerships: Mustafa Suleyman, co-founder of DeepMind, heads the team responsible for developing MAI-1. Microsoft has also recently struck a $650 million deal with Inflection AI to license its models and acquire a significant portion of its staff.

Why It Matters:

• Competition in the AI Space: Microsoft's MAI-1 aims to directly compete with leading models from rivals, underlining the escalating race for dominance in AI technology.

• Resource Allocation: Building this model demonstrates the company’s significant investment in hardware and human resources to ensure competitiveness.

• Partnership and Integration: The collaboration with Inflection AI and use of ChatGPT data emphasizes Microsoft's strategic partnerships to accelerate development and embed advanced models across its suite of products.

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APPLE

Apple building M2 Ultra and M4-powered AI servers.

Apple has initiated the development of its own AI servers powered by custom M2 Ultra and upcoming M4 chips. This effort aligns with the company's strategic vision to vertically integrate its supply chain, leveraging its custom chips to deliver enhanced AI capabilities. The servers will be key in improving data center performance and future cloud-reliant AI tools.

The Details:

• Apple's AI Server Development: Apple is building AI servers with the M2 Ultra chip and plans to incorporate the M4 chip by late 2025. These servers are assembled by Foxconn.

• Vertical Integration Strategy: Apple's move to create in-house AI servers reflects a desire to have greater control over its supply chain while reducing dependency on external chipmakers like Nvidia.

• On-Device and Cloud AI Balance: While focusing on on-device AI features, Apple acknowledges that some AI processing will require cloud support, positioning these servers as foundational for future AI developments.

Why It Matters:

• Enhanced Performance: Apple's servers could provide optimized performance for AI tools, allowing more efficient data processing and innovative features.

• Supply Chain Control: This integration ensures that Apple can maintain greater control over its supply chain, reducing reliance on third-party components and ensuring better cost management.

• AI-Focused Product Roadmap: The servers will support Apple's growing AI ambitions, influencing the development of future AI-centric features in products like the iPhone 16 and 17 lineups.

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AI IN US

Biden offers $285M for digital twin chip institute.

The Biden administration has announced an initiative to fund the development of "digital twins" of semiconductors, offering $285 million for entities to create an institute dedicated to this purpose. These virtual models, combined with artificial intelligence, could accelerate chip development and manufacturing processes.

Key Elements:

• Funding Announcement: The Biden administration is providing $285 million, sourced from the CHIPS Act, to establish an institute for developing digital twins of semiconductors.

• Virtual Chip Models: Digital twins will mimic physical semiconductors, enabling testing in virtual scenarios before production to improve design and manufacturing efficiency.

• Request for Proposals: The administration invites companies, universities, and state governments to submit proposals to create and run the "CHIPS Manufacturing USA" institute by June 20.

• Institute Focus: The new institute will focus on research and development, as well as the use of digital twins for manufacturing, packaging, assembly, and testing.

Why It Matters:

• Accelerating Chip Development: Digital twins will significantly reduce the time needed for chip development by allowing manufacturers to identify and resolve issues earlier in the design process.

• Securing Supply Chains: By improving domestic semiconductor R&D, the U.S. can better secure its technology supply chains, reducing reliance on foreign sources.

• Market Impact: The global market for digital twin platforms is projected to reach $86 billion by 2028, reflecting a significant economic opportunity for organizations involved in this initiative.

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