Nvidia posts record revenue thanks to booming AI business, declares AI ‘tipping point’

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Hype and controversy in AI went from simmering hot to blowing the roof off the kitchen last night as Nvidia announced record earnings and Google’s Gemini suffered an epic online backlash.

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TODAY’S MENU

• Nvidia posts record revenue on booming AI business, declares AI ‘tipping point’

• Gemini faces backlash after image generation controversy

• Chart: Nvidia’s Epic Rise

• Google releases Gemma, its powerful new open-source AI models

• 5 new AI tools to boost your productivity

• Memes: Nvidia’s rise and Gemini’s fall

NEWS

Today in AI & Tech

Next Level: AI startup Magic’s new breakthrough gives it reasoning abilities beyond current AI models and can also process more information than other AI models, claims report from The Information.

Spreading the Love: Samsung is bringing Galaxy AI features like live translations and circle to search to more devices (pictured above).

Falling Behind: Chinese tech companies were caught off guard by breakthroughs in generative AI and lag US companies by at least a year, says the NYTimes.

Safety Upgrade: Apple rolls out an iMessage upgrade to defend against decryption by quantum computers.

Seduced by AI: Hinge and Tinder owner Match Group pens a $20M+ deal with OpenAI to bring AI to its workforce.

NVIDIA

Nvidia posts record revenue thanks to booming AI business, declares AI ‘tipping point’

Nvidia’s quarterly earnings calls are becoming the Super Bowl for people who love trading stocks. And who can blame them? The company’s market cap could be the size of Canada’s GDP when markets open today.

What’s all the fuss about? Nvidia became the third largest company in the US yesterday after the company posted a record quarterly revenue increase of 265% thanks to booming demand for its AI chips.

How big of a deal is this? A $1.5 Trillion+ company announcing a 265% increase in quarterly revenue is almost unheard of. This was one of the most widely anticipated earnings reports of all time, and Nvidia still managed to beat Wall Street’s revenue expectations of $20.4B by posting $22.1B in revenue.

What does it mean? The Financial Times called Nvidia “the biggest single driver of a rally in the S&P 500 this year, powering about a quarter of the gains on the index.“ The company’s importance to the US stock market is becoming apparent and the company’s CEO said its chips were “essentially AI-generation factories” of a new industrial revolution.

What’s next? Demand for AI products, especially chips, is in full swing and Nvidia expects more to come. “Accelerated computing and generative AI have hit the tipping point,” said Nvidia CEO Jensen Huang. “Demand is surging worldwide across companies, industries and nations.”

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GEMINI-GATE

Gemini faces backlash after image generation controversy

Oh boy. Just when you think Google’s AI team is out of the woods, they somehow find a way to drag themselves back in. Social media was in uproar last night after several screenshots emerged of Google’s Gemini chatbot generating controversial images.

The bulk of the criticism was focused on the chatbot generating historically inaccurate images by forcing racial and gender diversity into its generations. One user shared screenshots alleging Gemini produced images of a black man and a black woman when asked to generate an image of the pope (pictured above).

While the overcorrection to include a diverse range of people was probably done with good intentions, the problems became apparent as more screenshots came in. One image showed Asian and Native American women in uniform when prompted to produce a picture of a German soldier in 1929. Another prompt for an image of Google’s cofounders generated images of two Asian men.

Gemini appeared to have shut down the image generation feature yesterday as several screenshots emerged of the chatbot refusing to generate any images when prompted. Jack Krawczyk, senior director for Gemini Experiences, acknowledged the problem and said: "We are aware that Gemini is offering inaccuracies in some historical image generation depictions, and we are working to fix this immediately."

CHART

Nvidia’s epic rise

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NEXT IN AI

Google releases Gemma, its powerful new open-source AI models

While the controversy surrounding Gemini’s image generations caught most of our attention yesterday, Google did actually release two very powerful open-source AI models that deserve attention.

While not as powerful as its high end Gemini models, the new family of Gemma models packs a serious punch. But why release a less powerful model that’s not as good as the real thing? Because smaller models are a lot faster and cheaper to run, and can often run on smaller devices like laptops and phones.

Google claims that the larger Gemma 7-B model outperforms Meta’s widely used Llama-2 models on key performance benchmarks that measure language, reasoning, and math skills. The company also claims that Gemma beats Mistral’s 7B model, another popular open-source model, on math and coding related tasks.

PRODUCTIVITY

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MEMES

Nvidia’s rise and Gemini’s fall

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Until next time!

Zain

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