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.
Chinese AI companies are swiftly responding to reports that OpenAI intends to restrict access to its technology in certain regions, including China. OpenAI, the creator of ChatGPT, is reportedly planning to block access to its API for entities in China and other countries. While ChatGPT is not directly available in mainland China, many Chinese startups have used OpenAI’s API platform to develop their applications. Users in China have received emails warning about restrictions, with measures set to take effect from 9 July.
In light of these developments, Chinese tech giants like Baidu and Alibaba Cloud are stepping in to attract users affected by OpenAI’s restrictions. Baidu announced an ‘inclusive Program,’ offering free migration to its Ernie platform for new users and additional Ernie 3.5 flagship model tokens to match their OpenAI usage. Similarly, Alibaba Cloud provides free tokens and migration services for OpenAI API users through its AI platform, offering competitive pricing compared to GPT-4.
Zhipu AI, another prominent player in China’s AI sector, has also announced a ‘Special Migration Program’ for OpenAI API users. The company emphasises its GLM model as a benchmark against OpenAI’s ecosystem, highlighting its self-developed technology for security and controllability. Over the past year, numerous Chinese companies have launched chatbots powered by their proprietary AI models, indicating a growing trend towards domestic AI development and innovation.
Italy’s financial watchdog, Consob, has begun experimenting with AI to enhance its oversight capabilities, particularly in the initial review of listing prospectuses and the detection of insider trading. According to Consob, these AI algorithms aim to swiftly identify potential instances of insider trading, which traditionally requires significantly more time when conducted manually.
The agency reported that its AI algorithms can detect errors in just three seconds, a task typically taking a human analyst at least 20 minutes. These efforts were part of testing conducted last year using prototypes developed in collaboration with Scuola Normale Superiore University in Pisa, alongside an additional model developed independently.
Consob views the integration of AI as pivotal in enhancing the effectiveness of regulatory controls to detect financial misconduct. The next phase involves transitioning from prototype testing to fully incorporating AI into Consob’s regular operational procedures. That initiative mirrors similar efforts by financial regulators globally who are increasingly leveraging AI to bolster consumer protection and regulatory oversight.
For instance, in the United Kingdom, the Financial Conduct Authority (FCA) has utilised AI technologies to combat online scams and protect consumers. That trend underscores a broader international movement within regulatory bodies to harness AI’s potential in safeguarding market integrity and enhancing regulatory efficiency.
AI startup EvolutionaryScale has secured $142 million in seed funding, led by investors including Nat Friedman, Daniel Gross, and Lux Capital. Both Amazon Web Services (AWS) and NVIDIA’s venture capital arm participated in this substantial funding round. Lux Capital’s co-founder Josh Wolfe likened EvolutionaryScale’s achievements to a ‘ChatGPT moment for biology,’ highlighting their development of a groundbreaking large language model capable of designing new proteins and biological systems.
EvolutionaryScale aims to deploy its AI across diverse applications, from accelerating drug discovery processes to engineering microbes that can degrade plastic pollution. The company’s chief scientist, Alex Rives, emphasised the growing significance of AI in creating innovative biological solutions. That aligns with broader industry trends where AI is increasingly pivotal in advancing biotech and pharmaceutical research.
However, concerns have been raised regarding the potential misuse of generative AI in bioweapons development. Despite these ethical considerations, EvolutionaryScale plans to use its newly secured funding to train its AI models further and expand its team for collaborations within the biotech sector. They have also released the ESM3 models, with the smaller variant open-sourced for non-commercial research, while AWS and NVIDIA will offer the larger ESM3 commercially.
Why does it matter?
One notable achievement highlighted by EvolutionaryScale involves engineering a novel fluorescent protein using their ESM3 model. That protein represents a significant departure from naturally occurring variants, a process typically requiring nature millions of years to evolve. The company’s advancements underscore the transformative potential of AI in pushing the boundaries of biological innovation.
During the 2024 AI Retreat, the Artificial Intelligence, Digital Economy, and Remote Work Applications Office of the United Arab Emiratesentered a strategic partnership with Rittal FZE, a Rittal and Co KG division based in Herborn, Germany. Rittal, a renowned provider of IT infrastructure solutions, power distribution, climate management, and industrial enclosures, is set to collaborate with the UAE to enhance the implementation and training of AI technologies. This partnership, focusing on advancing technology and training, is poised to inspire and excite the future of AI in the UAE.
The Executive Director of the AI, Digital Economy, and Remote Work Applications Office, Saqr Binghalib, underscored that the UAE government prioritises enhancing skills in digital advancement. He stressed that such efforts are vital for enhancing the country’s standing as a leading global AI hub and fostering stronger collaborations with the private sector. Rittal is committed to advancing technology and training through AI advancements and other smart applications, especially to support robotics and Industry 4.0 programming. The AI Retreat in 2024 saw the participation of over 2,000 decision-makers, experts, and representatives from the public and private sectors.
Google is enhancing Gmail with new AI features designed to streamline email management. A new Gemini side panel is being introduced for the web, which is capable of summarising email threads and drafting new emails. Users will receive proactive prompts and can ask freeform questions, utilising Google’s advanced models like Gemini 1.5 Pro. The mobile Gmail app will also feature Gemini’s ability to summarise threads.
However, these upgrades will only be accessible to paid Gemini users. To benefit from these features, one must be a Google Workspace customer with a Gemini Business or Enterprise add-on, a Gemini Education or Education Premium subscriber, or a Google One AI Premium member. Despite their potential usefulness, it’s advised not to depend entirely on these AI tools for critical work, as AI can sometimes produce inaccurate information.
In addition to Gmail, Google is incorporating Gemini features into the side panels of Docs, Sheets, Slides, and Drive. The rollout follows Google’s earlier promises at the I/O conference. Further AI enhancements, including ‘Contextual Smart Reply,’ are expected to arrive for Gmail soon.
Geologists are expressing concerns about potential Chinese censorship and bias in GeoGPT, a new AI chatbot backed by the International Union of Geological Sciences (IUGS). Developed under the Deep-time Digital Earth (DDE) program, which is heavily funded by China, GeoGPT aims to assist geoscientists, particularly in developing countries, by providing access to extensive geological data. However, issues around transparency and censorship have been highlighted by experts, raising questions about the chatbot’s reliability.
Critics like Prof. Paul Cleverley have pointed out potential censorship and lack of transparency in GeoGPT’s responses. Although DDE representatives claim that the chatbot’s information is purely geoscientific and free from state influence, tests with its underlying AI, Qwen, developed by Alibaba, suggest that certain sensitive questions may be avoided or answered inadequately. That contrasts with responses from other AI models like ChatGPT, which provide more direct information on similar queries.
Further concerns are raised about the involvement of Chinese funding and the potential for biassed data usage. Geoscientific research, which includes valuable information about natural resources, could be strategically filtered. Additionally, the terms of use for GeoGPT prohibit generating content that undermines national security or incites subversion, aligning with Chinese laws, which may influence the chatbot’s outputs.
The IUGS president, John Ludden, has stated that GeoGPT’s database will be made public once appropriate governance is ensured. However, with the project being predominantly funded by Chinese sources, geoscientists remain sceptical about the impartiality and transparency of GeoGPT’s data and responses.
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.
The United States has introduced draft rules to regulate investments in China, particularly in AI and other advanced technology sectors that could pose national security threats. The US Treasury Department released these proposed rules following President Joe Biden’s executive order in August, which targets semiconductors, quantum computing, and AI investments. The draft rules require US individuals and companies to identify and report transactions that may be restricted or banned, aiming to prevent US expertise from aiding China’s technological advancements.
The Treasury’s proposed rules include various exceptions, such as transactions in the US national interest or involving publicly traded securities. The regulations would specifically ban transactions involving AI for certain end uses and systems using significant computing power but require notifications for other AI-related investments. These rules focus primarily on China, Macau, and Hong Kong, though they might be expanded later.
Former Treasury official Laura Black highlighted that these rules would necessitate increased due diligence by US investors when dealing with Chinese companies in the specified sectors. The regulations also align with existing export controls on advanced semiconductors to China, aiming to hinder China’s military modernisation efforts. Violations of these rules could result in criminal and civil penalties, including unwinding investments.d
Why does it matter?
Treasury officials have engaged with international partners to discuss these investment restrictions, with the European Commission and the United Kingdom considering similar measures to address outbound investment risks. Public comments on the proposed rules are open until 4 August, with final regulations expected by the end of the year.
ByteDance, the Chinese owner of TikTok, is collaborating with US chip designer Broadcom to develop an advanced AI processor. This 5-nanometer chip, compliant with US export restrictions, will be manufactured by Taiwan’s TSMC. The initiative is aimed at securing a stable supply of high-end chips amid ongoing US-China tensions.
Unannounced to the public, the partnership represents one of the few recent collaborations involving advanced technology between US and Chinese firms since Washington’s 2022 export controls on cutting-edge semiconductors. ByteDance’s tie-up with Broadcom, an existing partner, is expected to reduce costs and ensure a steady supply of sophisticated chips, which are essential for ByteDance’s AI initiatives.
The new chip is still in the design phase, with manufacturing not expected to start this year. ByteDance’s push in generative AI requires advanced chips, which have become more challenging to obtain due to US sanctions. The company has been stockpiling Nvidia chips and has purchased AI accelerators from Huawei, emphasising the critical need for powerful algorithms across its platforms, including TikTok and Douyin.
ByteDance is actively hiring for semiconductor-related roles, including ASIC chip designers, and has been recruiting top talent from other Chinese AI chip firms. The company’s strategic efforts highlight its commitment to overcoming challenges posed by restricted access to advanced technology.
