Sequoia Capital is leading a $16 million investment in Dust, a French startup founded by former OpenAI researcher Stanislas Polu. Dust specialises in crafting bespoke AI bots for enterprises, leveraging advanced language models like OpenAI’s GPT and Google’s Gemini.
Its solutions cater to various business needs, such as customer support, sales analytics, and software code management. Instead of creating AI models from the ground up, Dust integrates its software with existing AI platforms such as Slack.
Why does it matter?
The funding round was geared towards facilitating Dust’s expansion into the US market and supporting its global ambitions. Despite facing competition from established entities and fellow startups, Dust maintains agility by using its flexibility to thrive in the competitive landscape of AI automation tools.
Due to strong demand from US tech companies, the French cloud services provider OVHcloud exceeded its Q3 revenue expectations. Despite economic challenges affecting cloud spending in Europe, OVHcloud experienced a significant 15.9% surge in its shares, a record increase for the company.
The firm emphasised substantial US private cloud sector growth, particularly in high-performance Bare Metal servers. Competing with industry giants like Amazon Web Services and Oracle, OVHcloud aims for global expansion through competitive pricing and enhanced performance offerings. OVHcloud achieved a 10.1% year-on-year revenue growth, reaching 251 million euros for Q3, exceeding market predictions. That contrasts with the revised 2024 targets set earlier due to weaker demand in key European markets, notably France and Germany.
Why does it matter?
OVHcloud’s Q3 performance underscores its competitive edge in the global cloud services market, particularly against dominant US players like Amazon Web Services and Oracle. The strong revenue growth fuelled by US technology demand highlights OVHcloud’s strategic positioning and potential for international expansion.
YouTube is negotiating with major record labels to license their songs for AI tools that clone popular artists’ music. The negotiations aim to secure the content needed to legally train AI song generators and launch new tools this year. Google-owned YouTube has offered upfront payments to major labels like Sony, Warner, and Universal to encourage artists to participate, but many remain opposed, fearing it could devalue their work.
Previously, YouTube tested an AI tool called ‘Dream Track,’ which allowed users to create music clips mimicking well-known artists. However, only a few artists participated, including Charli XCX and John Legend. YouTube now hopes to sign up dozens more artists to expand its AI song generator tool, though it won’t carry the Dream Track brand.
Why does it matter?
These negotiations come as AI companies like OpenAI are making licensing agreements with media groups. The proposed music deals would involve one-off payments to labels rather than royalty-based arrangements. YouTube’s AI tools could become part of its Shorts platform, competing with TikTok and other similar platforms. As these discussions continue, major labels are also suing AI startups for allegedly using copyrighted recordings without permission, seeking significant damages.
Japanese tech investor SoftBank Group’s Vision Fund 2 plans to invest between $10 million and $20 million in US search startup Perplexity AI, valuing the company at $3 billion. The investment is part of a larger $250 million funding round, which remains partially disclosed as the deal details are still being negotiated, and SoftBank and Perplexity have not commented.
Perplexity AI provides search tools that deliver instant answers with sources and citations, leveraging various large language models from OpenAI to Meta’s Llama. The San Francisco-based company raised $73.6 million in January from investors, including Nvidia and Amazon founder Jeff Bezos, at a valuation of $520 million.
The startup handled over 500 million queries in 2023 with minimal marketing expenditure.
Etched, an AI startup based in San Francisco, announced that it secured $120 million, aiming to create a specialised kind of chip tailored to run a specific type of AI model commonly used by OpenAI’s ChatGPT and Google’s Gemini.
Unlike Nvidia, which dominates the market for server AI chips with a roughly 80% market share, Etched aims to create a specialized processor optimized for running inference tasks. The produced chip would focus on generating content and responses, which is particularly suited for transformer-based AI models. The company’s CEO, Gavin Uberti, sees this as a strategic bet on the longevity of transformer models in the AI landscape.
In Etched’s funding round, key investors include former PayPal CEO Peter Thiel and Replit CEO Amjad Masad. The startup has also partnered with Taiwan Semiconductor Manufacturing Co. (TSMC) to fabricate its chips. Uberti highlighted the importance of the funding to cover the costs associated with sending chip designs to TSMC and manufacturing the chips, a process known as ‘taping out.’
While Etched did not disclose its current valuation, its $5.4-million seed-funding round in March 2023 valued the company at $34 million. The success of its specialised chip could position Etched as an important player in the AI chip market, provided transformer-based AI models continue to be prevalent in the industry.
Shopify is launching its new AI chatbot, ‘Sidekick,’ in early access as part of its 2024 Summer Edition updates. Sidekick, initially revealed last year, is designed to assist merchants with tasks such as creating discount codes, generating store reports, and suggesting blog post ideas. Currently, Sidekick is available to merchants with English stores in North America, but Shopify plans to expand its availability to other languages and regions.
In addition to Sidekick, Shopify announced several other AI tools to improve merchant efficiency. One notable feature is AI-powered product categorisation, which helps merchants by automatically suggesting taxonomy for product listings, making items more discoverable. Another tool provides suggested replies for customer chats in Shopify Inbox, although these replies need to be finalised by the merchant. Shopify is considering allowing AI to handle customer chats independently in the future.
Shopify is also enhancing its AI-powered image generator, which was launched in January, by integrating it into its iOS and Android apps and expanding its use within the Shopify admin. Over the past six months, Shopify merchants have saved over one million AI-generated images, highlighting the tool’s popularity and effectiveness.
Meta Platforms, Facebook’s parent company, is in talks to integrate its generative AI model into Apple’s newly announced AI system for iPhones. The integration comes as Apple plans to incorporate technology from various AI companies into its devices. There are also reports that Apple is considering a partnership with Google, its long-time search partner.
Additionally, Apple is exploring partnerships with other AI companies, including in regions like China, where OpenAI’s ChatGPT is banned. AI startup Anthropic has been discussing bringing its generative AI to Apple Intelligence with Apple. Though Meta and Anthropic have not commented, and Apple has not responded to requests for comment, these talks, if successful, could significantly expand the reach of these AI technologies.
The financial details of these potential deals remain unclear, but they could involve AI companies selling premium subscriptions through Apple Intelligence. AI search startup Perplexity is also discussing with Apple the incorporation of its generative AI technology. Apple recently announced its AI strategy, aiming to integrate the new Apple Intelligence technology across its apps, including Siri, and differentiate itself from competitors by emphasising privacy.
The Eurosystem, including the European Central Bank (ECB) and national central banks of the EU area, is advancing the digital euro project aimed to modernize central bank money. Following an initial investigation phase launched in 2021, the ECB’s Governing Council approved a two-year preparation phase starting 18 October 2023 and concluding by 31 October 2025. This phase will finalise the digital euro rulebook, select potential platform and infrastructure providers, and conduct further testing, particularly its offline functionality.
A cornerstone of the digital euro project is “privacy by design” approach. Technological measures like pseudonymisation, hashing, and encryption will ensure that online transactions remain unlinked to specific individuals. Payment service providers will access only the necessary transaction data for EU law compliance, with user consent required for any additional commercial uses. The digital euro is also designed for offline use, allowing payments without an internet connection, akin to cash transactions. This offline functionality will enhance privacy and usability in areas with limited network coverage or during power outages.
Legislative and stakeholder engagement continues in parallel, with the European Parliament and Council of the European Union working on the legislative framework proposed in 2023. Stakeholder involvement ensures the digital euro meets high standards of quality, security, and usability. Fraud prevention remains a priority, with ongoing assessments indicating that current technologies can effectively detect and prevent fraud using pseudonymised information.
By the end of 2025, the ECB will decide whether to proceed further with the digital euro, contingent on the legislative process completion.
PayPal has appointed Srini Venkatesan as its new Chief Technology Officer (CTO) to lead its artificial intelligence initiatives. Venkatesan will be in charge of areas such as AI and machine learning, information security, and product engineering. In his previous position at Walmart, Venkatesan developed platforms to support the retail giant, including aspects of the Walmart+ subscription service. He has also worked at Yahoo and eBay among others.
Why is this important?
Like others in the finance field, PayPal has sought to embrace AI to improve its services. In January, the company announced new AI-driven tools, including some to make payment checkouts smoother. However, other tools use buying history, instead of browsing history, to target clients.
‘Smart Receipts’ uses buying history to recommend products, cashback and other deals on receipts. Similarly, ‘Advanced Offers Platform’ uses AI to deliver targeted promotions based on the customer’s purchase history with any previous merchant. PayPal says it is shifting from general ads to personalised ‘offers’, improving the customer experience.
In an article in PayPal’s newsroom, the company said it is adding simple privacy controls to let customers choose whether to share their data with merchants for personalised offers. However, given that browsing targeted advertising has already caused privacy concerns, it is likely that buying history will do so too. Venkatesan will be expected to implement the tech and answer to these concerns in his new role.
Huawei Technologies announced significant advancements in operating systems and AI, achieving in 10 years what took the US and Europe 30 years. Richard Yu, chairman of Huawei’s Consumer Business Group, highlighted these achievements at a developer conference in Dongguan.
Huawei’s Harmony operating system is now on over 900 million devices, which marks a substantial progress since its launch in 2019 when US restrictions cut Huawei off from Google’s Android support. Yu noted that Huawei’s Ascend AI infrastructure is now the second most popular, following Nvidia.
Why does it matter?
The rise of the Internet of Things has provided Huawei an opportunity to surpass long-time Western dominance in software. Additionally, Huawei’s smartphone business has rebounded with the Mate 60, featuring a new China-made chip. Sales of Harmony-equipped smartphones increased by 68% in the first five months of the year. In Q1 2024, HarmonyOS became the second best-selling mobile OS in China, overtaking Apple’s iOS with a 17% market share.
