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Defying The Next AI “Hype Cycle”: An Approach To Strategic Investing

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Defying The Next AI Hype Cycle An Approach To Strategic Investing

AI’s influence is a topic that every investor is discussing. Additionally, businesses have been scrambling to adopt the newest AI technologies in an effort to stay ahead of the curve since the introduction of ChatGPT and other tools that have brought AI into the mainstream. When it comes to investing, we urgently need to adopt a more nuanced perspective on AI and related technologies.

For instance, a lot of AI tools like ChatGPT are by no means groundbreaking discoveries in computing or the study of the human mind. Tools for generative AI employ massive amounts of processing power on a wide range of data sets. And because of this fact, the hundreds of firms that have sprung up in the market offering ChatGPT-based solutions are probably going to fail.

That’s not to argue that businesses that properly apply generative AI won’t see enormous opportunities. It most definitely will. The crucial lesson here, though, is that tech investors shouldn’t jump at the chance to fund the “next best thing.” Given their accountability for valuing businesses that employ these technologies, they should exercise caution in igniting yet another hype cycle, as we have seen with artificial intelligence. It is necessary to say this in order to safeguard LPs and VC companies, as well as the startups and the larger tech industry.

Not Falling For “The Next Big Thing”

While it’s understandable that investors in technology are eager to see the next big thing, it’s important to keep an open mind while assessing possible prospects. With so much media coverage, it’s simple to make snap judgments on investments that don’t properly take into account a company’s long-term potential, its technology’s use cases, and other factors.

It is imperative for investors to inquire about the company’s long-term plan to ensure sustainable growth. The past’s investment success stories ought to serve as a sufficient cautionary tale about what occurs when big money is rushed into the most well-known businesses. Consider WeWork as an example. At its height, it was the most popular company, but due to the extreme overvaluations caused by careless investment, significant financial losses were the only likely consequence.

Before making an investment, all investors have an obligation to thoroughly examine technology companies. Why? Since following a fad too quickly may encourage people to make irrational investments that artificially inflate prices. Long-term, this only serves to disappoint partners, investors, and the businesses themselves. Naturally, the investors’ reputations may also be damaged.

Hazards On The Horizon

Needless to say, we need to take the time to carefully consider the risks associated with even the most alluring new technologies. A number of “ChatGPT startups” are cautionary examples of businesses that have a glossy exterior but nothing in the way of meaningful product innovation. As we’ve seen with those using OpenAI technology, many companies that promise to bring the next big thing instead end up building flimsy application layers on top of already-existing technologies. In the event that the underlying technology firm is dissolved, what would happen? This increased risk entails a decrease in long-term viability.

Securing The Future With Assurance

Never want to lose out on the next Google or Apple for their investments. Before getting ahead of ourselves, though, we should really consider the businesses we’re investing in. Is it the hype cycle or the enduring potential that excites us? History has shown us that fuelling an overhyped movement carries significant consequences for all parties involved.

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Google Expands the Availability of AI Support with Gemini AI to Android 10 and 11

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Android 10 and 11 are now compatible with Google’s Gemini AI, which was previously limited to Android 12 and above. As noted by 9to5google, this modification greatly expands the pool of users who can take advantage of AI-powered support for their tablets and smartphones.

Due to a recent app update, Google has lowered the minimum requirement for Gemini, which now makes its advanced AI features accessible to a wider range of users. Previously, Gemini required Android 12 or later to function. The AI assistant can now be installed and used on Android 10 devices thanks to the updated Gemini app, version v1.0.626720042, which can be downloaded from the Google Play Store.

This expansion, which shows Google’s goal to make AI technology more inclusive, was first mentioned by Sumanta Das on X and then further highlighted by Artem Russakoviskii. Only the most recent versions of Android were compatible with Gemini when it was first released earlier this year. Google’s latest update demonstrates the company’s dedication to expanding the user base for its AI technology.

Gemini is now fully operational after updating the Google app and Play Services, according to testers using Android 10 devices. Tests conducted on an Android 10 Google Pixel revealed that Gemini functions seamlessly and a user experience akin to that of more recent models.

Because users with older Android devices will now have access to the same AI capabilities as those with more recent models, the wider compatibility has important implications for them. Expanding Gemini’s support further demonstrates Google’s dedication to making advanced AI accessible to a larger segment of the Android user base.

Users of Android 10 and 11 can now access Gemini, and they can anticipate regular updates and new features. This action marks a significant turning point in Google’s AI development and opens the door for future functional and accessibility enhancements, improving everyone’s Android experience.

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OpenAI Releases new Features to Encourage Businesses to Develop Artificial Intelligence (AI) Solutions

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A significant portion of OpenAI’s business is focused on assisting enterprise customers in developing AI products, despite the company’s consumer-facing products, such as ChatGPT and DALL-E, receiving the majority of attention. They are now receiving new tools for those customers.

Corporate clients that power their AI tools with OpenAI’s application programming interface (API) will receive improved security features, the company announced in a blog post, including the option to use single sign-on and multi-factor authentication by default. In order to lessen the chance of any data leaks onto the public internet, OpenAI has also implemented 256-bit AES encryption during data transfers.

Additionally, OpenAI has introduced a new Projects feature that makes it easier for businesses to manage who has access to various AI tools. Companies should find it easier to stick to their budgets with the new cost-saving features, according to OpenAI. One such feature is the ability to use a Batch API to reduce spending by up to 50%.

Although the OpenAI announcement this week isn’t as exciting as a new GPT-4 version or text-to-video generation capabilities, it’s still significant. With OpenAI’s toolset, businesses all over the world are developing a wide range of AI tools for both internal and external use. If certain essential security and cost-savings improvements aren’t made, those businesses might look elsewhere or, worse yet, decide against pursuing AI projects altogether.

Security improvements may be especially important to companies and employees, as well as the eventual customers using their AI tools. If AI can deliver stronger security features, both company and user data is safer.

OpenAI stated that its new features not only address security and cost-savings, but also some of the requests made by its customers. Ingesting 10,000 files into AI tools is now possible for businesses, compared to just 20 files earlier. Additionally, according to the company, OpenAI’s platform should be less expensive to run and easier to use thanks to new file management features and the ability to control usage on the go.

Now accessible are all of OpenAI’s new API features. The company intends to continue enhancing its platform with cost-saving and security features in the future.

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Apple Launches Eight Small AI Language Models for On-Device Use

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Within the field of artificial intelligence, “small language models” have gained significant traction lately due to their ability to operate locally on a device rather than requiring cloud-based data center-grade computers. On Wednesday, Apple unveiled OpenELM, a collection of minuscule AI language models that are available as open source and small enough to run on a smartphone. For now, they’re primarily proof-of-concept research models, but they might serve as the foundation for Apple’s on-device AI products in the future.

Apple’s new AI models, collectively named OpenELM for “Open-source Efficient Language Models,” are currently available on the Hugging Face under an Apple Sample Code License. Since there are some restrictions in the license, it may not fit the commonly accepted definition of “open source,” but the source code for OpenELM is available.

A similar goal is pursued by Microsoft’s Phi-3 models, which we discussed on Tuesday. These models are small, locally executable AI models that can comprehend and process language to a reasonable degree. Although Apple’s OpenELM models range in size from 270 million to 3 billion parameters across eight different models, Phi-3-mini has 3.8 billion parameters.

By contrast, OpenAI’s GPT-3 from 2020 shipped with 175 billion parameters, and Meta’s largest model to date, the Llama 3 family, has 70 billion parameters (a 400 billion version is on the way). Although parameter count is a useful indicator of the complexity and capability of AI models, recent work has concentrated on making smaller AI language models just as capable as larger ones were a few years ago.

Eight OpenELM models are available in two flavors: four that are “pretrained,” or essentially a next-token version of the model in its raw form, and four that are “instructional-tuned,” or optimized for instruction following, which is more suitable for creating chatbots and AI assistants:

The maximum context window in OpenELM is 2048 tokens. The models were trained using datasets that are publicly available, including RefinedWeb, a subset of RedPajama, a version of PILE that has had duplications removed, and a subset of Dolma v1.6, which contains, according to Apple, roughly 1.8 trillion tokens of data. AI language models process data using tokens, which are broken representations of the data.

According to Apple, part of its OpenELM approach is a “layer-wise scaling strategy” that distributes parameters among layers more effectively, supposedly saving computational resources and enhancing the model’s performance even with fewer tokens used for training. This approach has allowed OpenELM to achieve 2.36 percent accuracy gain over Allen AI’s OLMo 1B (another small language model) with half as many pre-training tokens needed, according to Apple’s published white paper.

In addition, Apple made the code for CoreNet, the library it used to train OpenELM, publicly available. Notably, this code includes reproducible training recipes that make it possible to duplicate the weights, or neural network files—something that has not been seen in a major tech company before. Transparency, according to Apple, is a major objective for the organization: “The reproducibility and transparency of large language models are crucial for advancing open research, ensuring the trustworthiness of results, and enabling investigations into data and model biases, as well as potential risks.”

By releasing the source code, model weights, and training materials, Apple says it aims to “empower and enrich the open research community.” However, it also cautions that since the models were trained on publicly sourced datasets, “there exists the possibility of these models producing outputs that are biased, or objectionable in response to user prompts.”

Though the company may hire Google or OpenAI to handle more complex, off-device AI processing to give Siri a much-needed boost, Apple has not yet integrated this new wave of AI language model capabilities into its consumer devices. It is anticipated that the upcoming iOS 18 update—which is expected to be revealed in June at WWDC—will include new AI features that use on-device processing to ensure user privacy.

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