On Tuesday, Chinese tech giants Alibaba and Baidu significantly reduced prices for their large-language models (LLMs), intensifying a price war in the cloud computing sector. Alibaba’s cloud unit announced cuts of up to 97% on its Tongyi Qwen models, with the Qwen-Long model now costing only 0.0005 yuan per 1,000 tokens, down from 0.02 yuan. Baidu quickly followed, making its Ernie Speed and Ernie Lite models free for all business users.
The price reduction comes amid an ongoing price war in China’s cloud computing industry, with Alibaba and Tencent already lowering prices for their cloud services. Cloud vendors in China have increasingly relied on AI chatbot services to boost sales, spurred by the popularity of OpenAI’s ChatGPT. The competition has now extended to the LLMs powering these chatbots, potentially impacting profit margins.
Other companies have also joined the fray. Bytedance recently slashed the prices of its Doubao LLMs by 99.3% below the industry average for business users. Chinese startup Moonshot introduced a tipping feature for prioritising chatbot use, targeting both business and individual users. Baidu was the first in China to charge consumers for its LLM products, with its Ernie 4 model costing 59 yuan per month.
Microsoft is pushing generative AI to the forefront of Windows and its PCs. At its Build developer conference, the company unveiled new Copilot+ PCs and AI-powered features like Recall, designed to help users find past apps and files. These AI-first devices, featuring dedicated chips called NPUs, will be deeply integrated into Windows 11. The first models will use Qualcomm’s Snapdragon X Elite and Plus chips, promising extensive battery life, with Intel and AMD also on board to create processors for these devices.
In addition to the Copilot+ PCs, Microsoft introduced new Surface devices, including the Surface Laptop and Surface Pro. The Surface Laptop now features up to 22 hours of battery life and faster performance, while the new Surface Pro boasts a 90% speed increase, an OLED display, and an upgraded front-facing camera. Both devices support Wi-Fi 7 and have haptic feedback features.
Microsoft’s upcoming Recall feature for Windows 11 will allow users to ‘remember’ apps and content accessed weeks or months ago, enabling them to find past activities easily. Recall can associate colours, images, and more, allowing natural language searches. Microsoft emphasises user privacy, ensuring that all data remains on the device and is not used for AI training.
Other AI enhancements include Super Resolution for upscaling old photos and Live Captions with translations for over 40 languages. These features are powered by the Windows Copilot Runtime, which supports generative AI-powered apps even without an internet connection. CapCut, a popular video editor, will utilise this runtime to enhance its AI capabilities.
Google has announced the rollout of ‘AI Overviews’, previously known as the Search Generative Experience (SGE), marking a significant shift in how users experience search results. The following feature will provide AI-generated summaries at the top of many search results, initially for users in the US and soon globally. Liz Reid, Google’s head of Search, explained that the advancement simplifies the search process by handling more complex tasks, allowing users to focus on what matters most to them.
At the recent I/O developer conference, Google unveiled various AI-driven features to enhance search capabilities. These include the ability to search using video via Lens, a planning tool for generating trip itineraries or meal plans from a single query, and AI-organized results pages tailored to specific needs, like finding restaurants for different occasions. Google’s Gemini AI model powers these innovations, summarising web content and customising results based on user input.
Despite the extensive integration of AI, only some searches will involve these advanced features. Reid noted that simple searches like navigating a specific website won’t benefit from AI enhancements. However, AI can provide comprehensive and detailed responses for more complex queries.
Why does it matter?
Google aims to balance creativity with factual accuracy in its AI outputs, ensuring reliable information while maintaining a human perspective, especially valued by younger users. Google’s shift towards AI-enhanced search represents a broader evolution from traditional keyword searches to more dynamic and interactive user experiences. By enabling natural language queries and providing rich, contextual answers, Google seeks to make searching more intuitive and efficient. The approach not only aims to attract more users but also promises to transform how people interact with information online, reducing the need for extensive typing and multiple tabs.
Microsoft is gearing up to unveil a range of hardware and software updates for consumer devices at an event on Monday, taking place at its Redmond, Washington campus. Among the anticipated reveals are new iterations of its Surface Pro tablet and Surface Laptop, powered by Qualcomm chips built on Arm Holdings’ architecture. This move signifies a big shift from Intel’s longstanding dominance in the personal computer market.
The Qualcomm Snapdragon X Elite chips, expected to feature prominently in Microsoft’s new devices, boast a neural processing unit designed to enhance AI-focused applications like Microsoft’s Copilot software. The emphasis on AI acceleration underscores Microsoft’s commitment to staying at the forefront of technological innovation in consumer electronics.
While Microsoft’s product event is not slated for live streaming, it serves as a prelude to its annual developer conference, offering insights to attending journalists and industry analysts. Microsoft’s strategic partnership with OpenAI has positioned it ahead of competitors like Alphabet’s Google in the race to develop consumer-centric AI tools, setting the stage for further advancements in the field.
Why does it matter?
The tech landscape is rapidly evolving, with Apple’s introduction of custom Arm-based chips for Mac computers intensifying pressure on the PC industry. The collaboration of Microsoft with Qualcomm to migrate Windows to Arm’s chip designs reflects a concerted effort to adapt to these changes. With the impending expiration of Qualcomm’s exclusivity on Microsoft Windows devices, competition among chip designers, including Nvidia, is poised to escalate in the pursuit of next-generation PC performance.
Google has revealed plans to inject an additional $1.1 billion into its data centre campus expansion in Finland, emphasising its commitment to bolstering its AI business growth in Europe. The investment aligns with a broader trend of locating data centres in the Nordic region due to factors like the favourable climate, tax incentives, and abundant renewable energy sources.
While some Nordic countries have become more apprehensive about hosting data centres, Finland’s wind power capacity surge has left ample room for expansion. With a staggering 75% increase in wind power capacity in 2022 alone, Finland boasts a surplus of renewable energy, even witnessing negative pricing on windy days. Google secures its renewable energy needs through long-term contracts in Finland, ensuring sustainable operations for its data centres.
Why does it matter?
The exponential rise in AI usage is anticipated to drive a global power consumption surge for data centres. Google’s investment decision in Finland underscores its recognition of this trend, alongside its commitment to sustainability. Notably, Google’s Hamina data centre in Finland already operates with 97% carbon-free energy, with excess heat being redirected to the district heating network, benefiting local communities.
The investment is part of Google’s broader strategy to expand its data centre footprint in Europe, with recent announcements about new data centre constructions in the Netherlands and Belgium. Google’s ambitious sustainability goals aim for net-zero emissions across its operations and value chain by 2030, reflecting its proactive approach towards environmental responsibility and technological advancement.
France is set to host tech executives and political figures this week, including former US Secretary of State John Kerry and ex-Google CEO Eric Schmidt, at the ‘Viva Technology’ conference. The event, supported by Paris-based luxury giant LVMH, aims to spotlight French innovation in AI and address its implications on elections and climate change. LVMH’s Chairman Bernard Arnault is expected to be a key draw at the conference, which features cutting-edge technology from prestigious brands like Louis Vuitton and Dior.
Over the past 18 months, France has positioned itself as a leader in generative AI, the technology behind tools like OpenAI’s ChatGPT. President Emmanuel Macron has successfully attracted investments from major American tech companies such as Amazon and Microsoft while also pushing for EU-wide capital market integration to support emerging AI startups. Paris, already a global luxury hub, is leveraging its status to attract more tech investments, with dynamic growth in the tech ecosystem and meaningful investment inflows.
Why does it matter?
In 2023, investors funnelled nearly $8 billion into French tech companies, positioning France behind the UK but ahead of Germany in tech investment. Paris has seen a rapid increase in tech startups, with nearly 3,000 new companies founded in 2023, surpassing other European cities’ growth rates. Notable Paris-based AI startups like Mistral AI and Holistic AI have emerged, founded by former researchers from industry leaders like Google DeepMind. The startup Adaptive ML, founded by ex-Hugging Face employee Julien Launay, quickly raised $20 million with significant backing from French and international investors.
Despite these advancements, European startups still need help raising large amounts of capital due to the EU’s fragmented capital markets. However, investment partners like Index Ventures see growing potential in Europe, emphasising the importance of funding and talent recruitment to build competitive AI companies. The ‘Viva Technology’ conference aims to further establish Paris as a significant player in the global AI landscape.
The UK’s AI safety institute is set to open an office in the US this summer, aiming to enhance international collaboration on AI regulation. The new office in San Francisco will recruit technical staff to support the institute’s efforts in London and strengthen connections with its US counterparts. The new office opening underscores the need for coordinated global efforts to manage AI’s rapid advancements and potential risks. Experts have highlighted the existential threats AI could pose, comparable to nuclear weapons or climate change, making international regulation crucial.
Why does it matter?
This announcement comes just before Seoul’s second global AI safety summit, co-hosted by the British and South Korean governments. The summit will bring together leaders to discuss AI safety, innovation, and inclusion.
The initiative follows significant concerns raised after OpenAI released ChatGPT in November 2022, prompting calls for a development pause due to unpredictable threats. The first AI safety summit at Britain’s Bletchley Park saw world leaders and tech executives, including US Vice President Kamala Harris and OpenAI’s Sam Altman, discuss regulatory approaches.
The summit fostered cooperation despite global tensions, with China signing the ‘Bletchley Declaration’ alongside the US and others. Britain’s technology minister, Michele Donelan, emphasised the importance of international standards on AI safety, which will be a key topic at the upcoming Seoul summit.
South Korea and the UK are set to co-host the second global AI summit in Seoul this week, a response to the rapid advancements in AI since the first summit in November. UK Prime Minister Rishi Sunak and South Korean President Yoon Suk Yeol will lead a virtual summit on Tuesday, emphasising the urgent need for improved AI regulation amidst growing concerns over the impact of technology on society.
In a joint article, leaders of the UK and South Korea highlighted the necessity for global AI standards to prevent a ‘race to the bottom’. The summit, now called the AI Seoul Summit, will address AI safety, innovation, and inclusion. A recent global AI safety report underlined potential risks such as labour market disruptions, AI-enabled cyber attacks, and the loss of control over AI, stressing that societal and governmental decisions will shape the future of AI.
Why does it matter?
Initially focused on AI safety, the November summit saw prominent figures like Elon Musk and Sam Altman engage in discussions, with China signing the ‘Bletchley Declaration’ on AI risk management alongside the US and others. This week’s events will include a virtual summit on Tuesday and an in-person session on Wednesday featuring key industry players from companies like Anthropic, OpenAI, Google DeepMind, Microsoft, Meta, and IBM.
Google’s deployment of AI to condense search results is causing publishers’ concern about potential website traffic declines. The update to Google’s search engine, recently announced, will introduce AI-generated summaries of online queries in the US, with plans to expand globally. The implementation of AI in Google browsers could diminish the significance of links and web pages for over a billion users, potentially reducing audiences for bloggers, news outlets, and other online content creators who rely on Google referrals.
The AI-generated summaries, produced by Google’s Gemini technology, will offer concise insights from various online sources with minimal links. Google claims the change will encourage users to explore a wider range of websites, but critics, including Marketing AI Institute CEO Paul Roetzer, anticipate negative impacts on publishers and advertisers. With little information Google provides about the implications for these stakeholders, uncertainty looms over the future of online visibility and revenue generation.
Jeff Jarvis, a professor at CUNY Graduate School of Journalism, suggests that news organisations with credible information could benefit from partnerships with AI giants. However, the advertising industry faces uncertainties, with Semasio CEO Jeff Ragovin warning of potential revenue losses and the need for better-targeted ads amidst the AI-driven search landscape.
Researchers from the Netherlands have developed an AI platform capable of recognising sarcasm. The project was presented at a meeting of the Acoustical Society of America and the Canadian Acoustical Association in Ottawa. Using video clips and text from American sitcoms such as ‘Friends’ and ‘The Big Bang Theory,’ the researchers trained a neural network with the Multimodal Sarcasm Detection Dataset (MUStARD), previously annotated by another research team from the US and Singapore.
After being trained on this data, the AI model successfully detected sarcasm in unlabeled exchanges about 75% of the time. Further improvements using synthetic data have reportedly enhanced this accuracy, though these findings are yet to be published. Notable scenes used for training included moments from ‘The Big Bang Theory’ and ‘Friends’ that exemplified sarcastic interactions.
The research team at the University of Groningen aims to advance their sarcasm detection capabilities. By incorporating visual cues such as facial expressions, they aim to refine the AI’s ability to detect sarcasm more accurately. The project could significantly improve AI assistants’ interactions by enabling them to understand negative or hostile tones in human speech.
Why does it matter?
Sarcasm generally takes the form of an ironic remark, often rooted in humour, that is intended to mock or satirise something. When a speaker is being sarcastic, they say something different than what they actually mean, and that’s why it is hard for a large language machine to detect such nuances in someone’s speech.
The project aligns with similar research initiatives, such as those by the US Department of Defense’s DARPA, which developed an AI model for detecting sarcasm in text. The success of these projects is a significant achievement since it underscores the importance of understanding sarcasm in human communication, which could enhance the development of more nuanced and compelling AI systems.
