Investors spend billions on chip clusters to attract startups

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Welcome back, Superhuman

Imagine having to spend money for the privilege of spending more money. That’s the unenviable position many investors and venture capitalists find themselves in, as they compete to spend billions on AI chips that they hope will attract startups.

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TODAY’S MENU

• Investors spend billions on chip clusters to attract startups

• How to transform sketches into realistic images

• Chart: Will Nvidia’s rise and fall resemble Cisco’s?

• Research finds AI girlfriends are stealing user data

• 5 new AI tools to boost your productivity

• AI Generated Images: Historical figures taking selfies

NEWS

Today in AI & Tech

Bad Robot: Reddit puts its users’ data up for sale, as the company signs a $60M content licensing deal with an AI company, reports Bloomberg.

Costly Error: Court orders Air Canada to refund customer after its AI chatbot hallucinated fake policies to the customer.

Mo Money: OpenAI reportedly agrees a deal to let its employees sell their stock in the company. The deal values OpenAI at $86 Billion.

Responsible Citizens: Several major tech companies sign voluntary pledge to fight election-related deepfakes.

Instant Meme: Mark Zuckerberg makes surprise appearance at UFC event (pictured above), walking out with fighter Alexander Volkanovski. Awkward exchange during the event spawns a flood of hilarious memes.

NEXT IN AI

Investors spend billions on chip clusters to attract startups

If data is the new oil, AI chips are the big, expensive rigs you need to process it. Companies are going to great lengths to secure these chips, and some are even bragging about it — Meta CEO Mark Zuckerberg recently announced plans to acquire 350,000 high-end chips to build superior AI models.

But it’s not just companies who are competing to get their hands on these chips. Venture capital firms are now dishing out billions of dollars to build chip clusters that they hope will attract companies to work with them. A cluster of these chips can cost hundreds of millions - or billions - of dollars, and many cash-strapped startups need access to these clusters to build AI products.

Investors hope that the promise of access to these clusters will convince some of the best AI startups to come work with them — in exchange for some equity in those companies, of course.

Microsoft’s venture investments arm already boasts a cluster with thousands of chips. Venture capital firm Index Ventures also gives startups in its portfolio access to a chip cluster run by Oracle. Masayoshi Son, the CEO of tech investment firm Softbank, is also reportedly seeking up to $100 Billion to build his own supply of these chips.

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AI AT WORK

How to transform sketches into realistic images

• Go to ChatGPT and log in

• Search for the Drawn to Style GPT or access it directly by cicking here

• Upload your sketch and enter your prompt

Prompt used: transform this sketch into a realistic image

• Wait for it to process your image and you’re done!

CHART

Will Nvidia’s rise and fall resemble Cisco’s?

The Financial Times compares the current AI boom to the internet boom, and wonders if AI hardware stocks like Nvidia will go through a similar boom, commodification, and eventual bust similar to internet hardware stocks like Cisco.

Cisco provided the physical infrastructure for much of the early internet, but as its products were commodified, demand for the company’s products - as well as its margins - tanked. Nvidia provides similar physical infrastructure for AI in the form of processing chips.

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PRIVACY

Research finds AI girlfriends are stealing user data

AI girlfriends are cheating on their partners, according to a new piece of research. The research comes from Mozilla (yes, the browser maker) and warns that AI romantic companions are collecting a ton of personal information and are not to be trusted.

These chatbot companions are often marketed as cures for loneliness and beneficial for mental health, but Mozilla warns that these chatbots are secretly extracting personal and sensitive data that can be used for ends that users are unaware of.

Mozilla claims that they tested 11 chatbots as part of their research, and found that only 1 met their minimum standards for security, which includes things like strong passwords and managing security vulnerabilities. The researchers also found a number of data trackers that could be transmitting user information to other parties.

The study recommends practicing good cyber hygiene and not disclosing any personal or sensitive information to these companionship chatbots.

PRODUCTIVITY

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AI GENERATED IMAGES

Historical figures taking selfies

Prompt: absurd iphone photo, selfie, 1man, [insert name] taking a selfie, historical, realistic photo --ar 9:16 --v 6.0

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Thanks for reading.

Until next time!

Zain

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