Perplexity AI, backed by Jeff Bezos and Nvidia, has announced its intention to initiate advertisement on its AI-based search engine platform by the fourth quarter of the year. Last month, the company rolled out a publisher’s program with partners comprising IME, Der Spiegel, Fortune, Entrepreneur, The Texas Tribune, and WordPress.
The AI-powered search engine space is still in its infancy, opening a massive market for new players. Among the big tech giants, Google has integrated AI in its search by providing AI-generated summaries or overviews for each search request. Meanwhile, its rival Microsoft has integrated OpenAI technology and launched the AI-powered Bing.
Why does it matter?
This move can potentially threaten Google’s dominant position in the industry. Through its search engine supremacy for two decades, Google became one of the world’s most valuable companies through its ad-based revenue model. Since ChatGPT launched, existing and upcoming search engines have attempted to integrate AI into web search and bring about a new business model in the search engine space.
Chinese entities linked to the state are turning to cloud services from Amazon and its rivals to access advanced US chips and AI capabilities that are otherwise restricted. Over the past year, at least 11 Chinese organisations have sought cloud services to bypass US export restrictions on high-end AI chips, according to tender documents.
Amazon Web Services (AWS) was specifically mentioned as a provider in several cases, though Chinese intermediaries were used to access the services. US regulations focus on the export or transfer of physical technology, leaving a loophole for cloud-based access. This has allowed US companies to profit from China’s growing demand for computing power.
Efforts to close this loophole are ongoing. US legislators have expressed concerns, and the Commerce Department is considering new rules to tighten control over remote access to advanced technology. AWS has stated that it complies with all applicable laws, including trade regulations in the countries where it operates.
Microsoft’s cloud services have also been sought by Chinese universities for AI projects. These activities highlight the increasing demand for US technology in China and the challenges in enforcing export controls. Both Amazon and Microsoft declined to comment on specific deals, but the implications for US-China tech relations are significant.
Several Chinese state-linked entities are turning to cloud services to access restricted US technology, according to recent public tender documents. By using cloud platforms like Amazon Web Services (AWS), these entities gain access to advanced chips and AI capabilities that would otherwise be unavailable due to US trade restrictions.
Entities like Zhejiang Lab and the National Center of Technology Innovation for EDA have expressed interest in using AWS for AI development. Others, such as Shenzhen University and Fujian Chuanzheng Communications College, have reportedly utilised Nvidia chips through cloud services, circumventing US export bans.
Microsoft’s Azure platform has also attracted attention from Chinese institutions like Chongqing Changan Automobile Co and Sichuan University, which are exploring generative AI technology. The ability to integrate these advanced tools into their systems is seen as critical for maintaining competitiveness.
Concerns remain over the use of US technology by Chinese organisations, especially those with potential military applications. Universities such as Southern University of Science and Technology and Tsinghua University have pursued cloud access to Nvidia chips, despite US efforts to restrict such technology transfers.
California’s revised bill on AI regulation, SB 1047, has drawn significant attention from tech companies, including San Francisco-based Anthropic, a competitor to OpenAI. The bill, introduced by State Senator Scott Wiener, seeks to mandate safety testing for advanced AI models that are costly to develop and establish a ‘kill switch’ for malfunctioning AI.
While the bill has faced opposition from major tech players like Google, Meta, and OpenAI, Anthropic’s CEO, Dario Amodei, has noted that recent amendments have improved the bill, making its benefits potentially outweigh its costs, though some concerns remain. Tech companies have largely opposed the bill, arguing that it could hinder AI development in California and create an uncertain legal environment.
Meta, in particular, warned that the bill could make the state less attractive for AI innovation. OpenAI has advocated for federal rather than state regulation, citing the bill’s potential to complicate the legal landscape for AI developers.
Despite these concerns, the revised version of SB 1047 has been seen as a step forward by some in the tech community. Amodei acknowledged that while the bill’s initial version raised fears of stifling innovation, the amendments have alleviated many of those worries. However, he still sees some aspects of the bill as potentially problematic.
D-ID has recently launched an innovative AI video translation tool that allows creators to automatically translate their videos into multiple languages while simultaneously cloning the speaker’s voice and synchronising lip movements to match the translated audio. This groundbreaking feature enhances video content accessibility for a global audience, making it easier for creators to connect with viewers across language barriers.
The tool supports translations into 30 languages, including widely spoken languages such as Arabic, Mandarin, Japanese, Hindi, Spanish, and French, enabling creators to reach diverse audiences and expand their global footprint effectively. By automating the translation and dubbing process, D-ID aims to reduce localisation costs for businesses and content creators, facilitating the scaling of video marketing and communication strategies worldwide.
Additionally, the tool enters a competitive landscape where other companies, such as YouTube and Vimeo, are improving video translation capabilities as video continues dominating digital communication. D-ID’s technology targets individual creators and enterprise customers looking to enhance global outreach through effective video localisation strategies.
By combining voice cloning and lip-syncing, D-ID’s AI Video Translate creates a seamless multilingual viewing experience, positioning the company as a key player in the future of AI-driven content creation.
South Tyneside and Sunderland NHS Foundation Trust will continue using AI technology after a successful trial demonstrated its effectiveness in identifying bowel lesions. The trial involved 2,032 patients across 10 centres in the UK and used the GI Genius AI device during colonoscopies. After a while, this technology detected an additional 0.36 adenomas per procedure, helping to prevent potential cancer development.
Professor Colin Rees, a consultant gastroenterologist at the trust, highlighted the significance of the AI device in saving lives by increasing the detection of bowel abnormalities. The AI was particularly effective in identifying small or flat polyps often missed by the human eye, which can be crucial in early cancer prevention.
Bowel cancer remains a significant health concern in the UK, with 43,000 new cases and 16,000 deaths annually. The AI’s ability to detect adenomas in an extra eight out of 100 people without increasing complications is a promising advancement for medical professionals.
The trial, led by South Tyneside and Sunderland NHS Foundation Trust and Newcastle University, has encouraged the trust to integrate AI technology into routine practice. As the AI continues to learn from images, its performance is expected to improve further, offering hope for wider adoption in the future.
Flo Crivello, founder of Lindy, recently faced an unusual issue when a client was Rickrolled by one of the company’s AI assistants. Instead of providing a tutorial video, the AI sent the famous Rick Astley music video, highlighting the quirks of large language models.
The incident was traced back to the way the AI predicted the most likely sequence of text, leading it to send the prank video. Although only two such cases occurred, Crivello acted quickly, implementing a prompt to prevent further Rickrolling.
A customer reached out asking for video tutorials.
We obviously have a Lindy handling this, and I was delighted to see that she sent a video.
But then I remembered we don't have a video tutorial and realized Lindy is literally fucking rickrolling our customers. pic.twitter.com/zsvGp4NsGz
This incident underscores how deeply internet culture can influence AI models. Similar problems have surfaced in other AI systems, like Google’s, which have also struggled with the content they are trained on.
Despite these challenges, advancements in AI technology are making it easier to patch such errors. Lindy has since corrected the issue, ensuring clients receive the correct content without unwelcome surprises.
Zoom has raised its annual revenue forecast, driven by increasing demand for AI-powered collaboration tools in hybrid work environments. The video-conferencing company has been focusing on integrating AI into its products, which has contributed to its financial success. A key highlight was the success of Zoom Contact Center, a platform that secured several major clients in the second quarter.
Large accounts generating over $100,000 in trailing 12-month revenue saw a notable increase of 7.1%, with average monthly churn rates reaching an all-time low. Industry experts believe Zoom’s continued innovation and product expansion are crucial for sustaining growth beyond its pandemic-era success. However, the company will face challenges in maintaining this momentum.
Zoom also announced that CFO Kelly Steckelberg will be stepping down after the company reports its earnings for the quarter ending 31 October. Steckelberg, who has been with Zoom since 2017 and led its IPO in 2019, will be succeeded by a new CFO, as the search for her replacement is underway.
For fiscal 2025, Zoom now expects revenue between $4.63 billion and $4.64 billion, slightly above previous estimates. The company’s second-quarter revenue of $1.16 billion surpassed expectations, as did its adjusted earnings of $1.39 per share.
Microsoft has revamped its financial reporting structure to better highlight the impact of its AI initiatives. The changes move search and news advertising revenue to the Azure cloud-computing division, while revenue from AI and speech technology services under the Nuance unit now falls within the productivity segment, which houses the Office suite.
The adjustment aligns with how this giant manages its business operations and offers investors clearer insights into AI’s contributions. Following the restructure, Microsoft revised its revenue growth figures for the past fiscal year and adjusted its forecast for the July-September quarter.
Investors are increasingly demanding transparency regarding returns on AI investments, particularly from major tech firms like Microsoft and Google. Microsoft has been one of the few companies to consistently break out AI-related contributions in its earnings reports, noting that AI provided a significant boost to Azure in the June quarter despite a broader slowdown.
The reorganisation has led to changes in company’s revenue expectations. The company now anticipates lower quarterly revenue for its personal computing segment and adjusted forecasts for its productivity and business processes division, reflecting the shift in business unit alignment.
French President Emmanuel Macron is set to visit Serbia from 29 August to 30 to discuss enhancing economic relations and Serbia’s emerging role in the AI sector. During the visit, Macron will meet with Serbian President Aleksandar Vucic to explore opportunities for collaboration, particularly as Serbia prepares to chair the Global Partnership on Artificial Intelligence in 2025.
This initiative, established by Macron and Canadian Prime Minister Justin Trudeau, aims to ensure the responsible development of AI. The trip follows a recent agreement between Serbia and the European Union, which grants the EU access to raw materials from Serbia.
Macron’s visit will also align with France’s plans to host an AI Action Summit in 2025, underscoring the growing importance of AI in international relations and economic partnerships.
