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In this edition, we delve into a significant shift within one of the industry's leading organizations: OpenAI.

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TODAY’S AI SECRET:

• OpenAI ends team focused on long-term AI risks.

• BlackRock discusses AI investment with governments.

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

• UK watchdog won't investigate Microsoft's AI deal with France's Mistral.

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TODAY’S AI WORLD

• AI-Generated Summaries - Gannett, a major American newspaper conglomerate, has initiated a pilot program to integrate AI-generated summaries at the beginning of their articles.

• Microsoft Expands AI Chip Offerings on Azure - Microsoft will offer AMD's AI chips through its cloud service, providing an alternative to Nvidia’s GPUs in the data center AI chip market.

• AI Warfare - Palantir's inaugural AI warfare conference in Washington DC highlighted stark divisions among attendees over the morality and future of AI in military contexts.

• Slack Sparks Outrage - Slack's vague policy suggests using messages and files for AI training. Users found default data sharing, sparking criticism over consent. They demand a clearer policy, not just blog clarifications.

OPENAI

OpenAI ends team focused on long-term AI risks.

OpenAI has disbanded its dedicated "superalignment" team, integrating its work with broader research teams. This change signifies a shift in focus from isolated safety efforts to a more integrated approach within the company's overall operations.

The Details:

• Team Disbanded: OpenAI no longer maintains a separate "superalignment" team tasked with ensuring artificial general intelligence (AGI) doesn't turn against humanity.

• Leadership Departures: Key leaders of the superalignment team, Ilya Sutskever and Jan Leike, have left the company. Leike criticized OpenAI's focus on product development over safety.

• Integration of Safety Work: OpenAI claims that integrating the superalignment team's work with other research teams will improve safety efforts.

• Industry Trend: Other major AI companies like Google and Meta are also decentralizing their safety and responsibility teams, arguing that integrating these efforts throughout the company is more effective.

Why It Matters:

• Shift in Priorities: The dissolution of the superalignment team reflects a broader industry trend of prioritizing rapid AI development over dedicated safety efforts.

• Safety Concerns: Critics argue that without dedicated teams, safety work may not receive sufficient resources or attention, potentially increasing risks associated with advanced AI.

• Industry Dynamics: The debate continues over the best approach to AI safety, with some advocating for dedicated teams and others supporting integrated efforts within broader research initiatives.

• Future of AI Safety: The changes at OpenAI and other companies indicate a shift towards faster AI development, potentially at the expense of rigorous safety measures.

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BLACKROCK

BlackRock discusses AI investment with governments.

BlackRock is engaging with various governments to explore funding opportunities for critical investments needed to support the growth of AI. These investments focus on enhancing power supply for AI data centers and semiconductor plants, which are essential for AI development but demand significant electrical power.

The Details:

• Critical Investments Needed: BlackRock is in discussions with governments to fund essential infrastructure, including power supply, to support AI development.

• Power Demands: AI data centers and semiconductor plants require massive amounts of electricity, presenting a challenge for current power supply capabilities.

• Global Competitive Challenge: BlackRock CEO Larry Fink highlighted that the power demands of AI data centers could create competitive challenges for countries, with investments likely shifting to areas with cheaper power supply.

• State Subsidies and Private Investment: To make power costs competitive, state subsidies may be necessary. BlackRock sees this as a significant opportunity for private investors, including pension funds and insurers.

• Japan's Power Needs: Japan estimates a 35% to 50% increase in electricity output by 2050 due to growing demands from AI technologies.

• Government Engagement: BlackRock is in conversations with several governments to facilitate private capital investments, as G7 states face fiscal constraints that make it difficult to fund these projects alone.

Why It Matters:

• AI's Impact on Global Productivity: AI is expected to significantly boost global productivity, but its development requires substantial infrastructure investments, particularly in power supply.

• Economic Implications: The power demands of AI data centers could influence global economic competition, with countries needing to ensure affordable and reliable power supplies to attract and sustain AI investments.

• Investment Opportunities: The funding requirements for AI infrastructure present lucrative opportunities for private investors, offering a new avenue for pension funds and insurers to invest in high-growth sectors.

• Fiscal Challenges for Governments: The need for large-scale investments in AI infrastructure underscores the fiscal challenges faced by G7 governments, highlighting the importance of private capital in meeting these demands.

• Long-term Sustainability: The discussions around funding AI infrastructure also raise concerns about long-term sustainability and the financial burdens on future generations, emphasizing the need for balanced and strategic investment approaches.

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MICROSOFT

UK watchdog won't investigate Microsoft's AI deal with France's Mistral.

British regulators have decided not to open a competition investigation into Microsoft's partnership with French AI company Mistral, concluding that the deal does not warrant further scrutiny under U.K. merger rules. This decision marks a significant development in Microsoft's strategic moves in the AI sector.

The Details:

• No Competition Investigation: The U.K.'s Competition and Markets Authority (CMA) announced that Microsoft's partnership with Mistral does not qualify for an antitrust investigation.

• Strategic Partnership: Microsoft partnered with Mistral to potentially reduce its reliance on OpenAI for generative AI products, including chatbots.

• Industry Feedback: In April, the CMA sought comments from industry stakeholders to determine the necessity of a deeper antitrust investigation.

• CMA's Conclusion: The CMA confirmed that the partnership does not grant Microsoft sufficient rights or influence over Mistral to raise competition concerns.

• Ongoing Investigations: The CMA is still investigating Microsoft's hiring of key staff from Inflection AI and Amazon's $4 billion investment in Anthropic, but provided no updates on these reviews.

• OpenAI Partnership Review: The CMA has not issued an update on its review of Microsoft's partnership with OpenAI, which it began soliciting comments on in December.

Why It Matters:

• Strategic Independence: By partnering with Mistral, Microsoft aims to diversify its AI capabilities and reduce dependency on OpenAI, potentially enhancing its competitive edge in the AI market.

• Regulatory Landscape: The CMA's decision not to investigate the Mistral partnership indicates a regulatory environment that may allow for strategic collaborations in the AI sector without immediate antitrust concerns.

• Focus on Other Deals: The ongoing scrutiny of other partnerships and investments highlights the CMA's vigilance in monitoring significant moves within the AI industry, ensuring competitive practices are maintained.

• AI Market Dynamics: The developments underscore the rapidly evolving dynamics of the AI market, where major players like Microsoft are continuously seeking strategic partnerships to bolster their technological and competitive positions.

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