This is "The AI Economy," a weekly LinkedIn-first newsletter about AI's influence on business, work, society and tech and written by Ken Yeung. Sign up here.
It was supposed to be Google’s week to showcase its latest AI innovations.
Then, OpenAI said, “Hold my beer,” and released a significant update to GPT-4 that can handle text, speech and video. And the new model is free to use!
While it took some of the wind out of Google’s sail on the eve of the company’s developer conference, Google remained steadfast in its pitch about its Gemini AI: It’s going to be accessible to all and work with any device, form factor, or use case.
In this week’s issue of “The AI Economy,” check out Google’s vision of a Gemini-powered future and understand its impact on our search for knowledge.
Google’s Gemini Era
“If you’ve never experienced Google I/O, it’s like the Eras Tour, only with fewer costume changes,” Google Chief Executive Sundar Pichai quipped at the beginning of his keynote address. It was the second time a major tech conference made reference to the incredibly popular Taylor Swift tour. But the mention underscored Google’s effort to turn the page on a new chapter in its history, embracing one in which it’s all-in on AI.
Google has slowly been introducing AI tools over the years, launching products like Google Assistant and Google Home, and who could forget that demo of Google Duplex? However, this year seemed different because it didn’t seem like AI was an added thing. Instead, the technology was part of everything at Google I/O, so much so that the phrase “AI” was mentioned 121 times during the opening keynote.
But simply showing that Gemini is baked into its apps is not enough. Google has to show it’s thinking about the next phase of AI, and that’s what it did at this year’s I/O. During the opening keynote, the company unveiled Project Astra, an AI agent capable of understanding the dynamics of the world. An early version was demoed in a video, showcasing capabilities that seemed as if unlimited resources were poured into making Google Assistant and Lens really good. The timing could have been better, though: When OpenAI announced GPT-4o, it also demoed something similar.
Oops.
Regardless, pundits, developers and investors have a better understanding of how Google compares to OpenAI. Unlike a year ago, both tech firms now appear to be on the same footing. However, Google still needs to do more to win over developers, and some may take a wait-and-see approach because they’re concerned that the features the company promised may not actually materialize.
While valid, it’s not the message to take away from I/O. Instead, Google is saying the kids’ gloves are off now, and it’s ready to take on OpenAI, Microsoft and Meta. It’s no longer running scared—it’s ready to bring the AI fight.
Next up: Microsoft. The Windows maker will hold its Build developer conference next week in Seattle, Washington.
Today’s Visual Snapshot
Speaking of GPT-4o, take a look at four charts produced by OpenAI illustrating how the new AI model compares against other similar LLMs across various benchmark metrics.
Quote This
“With GPT-4o, OpenAI again cements its lead…over the AI space, but it also is a clear sign of an important shift…All of these features we are starting to see appear—lower prices, higher speeds, multimodal capability, voice, large context windows, agentic behavior—are about making AI more present and more naturally connected to human systems and processes.”
— Ethan Mollick, in response to OpenAI releasing GPT-4o this week (One Useful Thing)
This Week’s AI News
🏭 Industry Insights
- With Ilya Sutskever leaving OpenAI, doomers have lost the AI fight (Axios)
- OpenAI disbands its team tasked with understanding the existential dangers of AI (Wired)
- The San Francisco Bay Area becomes undisputed leader in AI tech and funding dollars (Crunchbase News)
🤖 Machine Learning
- OpenAI announces new free model GPT-4o and ChatGPT for desktop (VentureBeat)
- Hugging Face commits $10 million in free shared GPUs to help developers create new AI technologies (The Verge)
- Why “multimodal AI” is the hottest thing in tech right now (Gizmodo)
- Silo AI launches multilingual Nordic LLM, plans to expand to cover every EU language (The Next Web)
✏️ Generative AI
- Apple nears deal with OpenAI to put ChatGPT on iPhone (Bloomberg)
- OpenAI signs licensing deal with Reddit to integrate user-generated content into ChatGPT (VentureBeat)
- ElevenLabs releases ElevenLabs Reader: AI Audio, its first consumer app that can read webpages, PDFs and other documents aloud (Bloomberg)
- We have to stop ignoring AI’s hallucination problem (The Verge)
- Prepare to get manipulated by emotionally expressive chatbots (Wired)
- OpenAI’s custom GPT Store is now open to all for free (The Verge)
- What OpenAI’s GPT-4o means for developers (VentureBeat)
- ChatGPT now lets you import files directly from Google Drive and Microsoft OneDrive (VentureBeat)
- Google’s SynthID watermarking tool can now mark digitally generated video and AI-generated text (The Verge)
🛒 Commerce
- Expedia will launch an AI assistant to help with travel research and planning (TechCrunch)
- Nike is developing its own generative AI model to design products (Dezeen)
⚙️ Hardware and Robotics
- Microsoft to unveil custom Cobalt 100 chips as a public preview at Build next week (TechCrunch)
- Meta exploring the development of AI-assisted earphones with cameras (The Information)
- Google sneakily shows a pair of AR glasses in its Project Astra demo at I/O (Engadget)
🔬 Science and Breakthroughs
- AI chip company Cerebras announces advances in materials science, sparse training and more (Silicon Angle)
- Should we use AI to resurrect digital “ghosts” of the dead? (Science News)
- The role scientists believe AI will play in tackling the biodiversity crisis (Phys.org)
💼 Business and Marketing
- Anthropic names Instagram’s co-founder Mike Krieger as its chief product officer (The Verge)
- NBCUniversal to start using generative AI in its ad sales efforts (Deadline)
- How publishers are responding to Google rolling out its Search Generative Experience (Adweek)
- Perplexity adds Google, Bing veterans as advisers (Bloomberg)
📺 Media and Entertainment
- Sony Music accuses Google, Microsoft and OpenAI of training their AI using music from Adele, Beyonce and other artists (BBC News)
- How AI is changing the world of competitive car racing (Quartz)
- What do you do when AI takes your voice? Two actors are suing a tech company alleging it illegally used recordings of their voice to create bots that can compete with their voice work (The New York Times)
- This former Alexa engineer uses AI to turn all the newsletters in your inbox into a daily podcast (Geekwire)
- In Hollywood, “everyone is using AI, but they are scared to admit it” (The Hollywood Reporter)
💰 Funding
- Are huge AI startup valuations back again? (Crunchbase News)
- Is Stability AI for sale? (Reuters)
- CoreWeave raises $7.5 billion in debt financing to build out AI infrastructure (CNBC)
- Cruise co-founder Kyle Vogt raises $150 million for household robot startup (Forbes)
- LanceDB secures $11 million in investment to build an open-source multimodal AI database (VentureBeat)
- Voxel51 raises $30 million to help gen AI understand visual input more accurately (VentureBeat)
⚖️ Copyright and Regulatory Issues
- UK competition watchdog declines to investigate Microsoft’s partnership with Mistral AI (Reuters)
- Connecticut and Colorado are leading the charge on regulating AI, but face stiff opposition from the tech industry (Politico)
- U.S. Senate releases long-anticipated AI governance roadmap, but some say they’re disappointed (Fast Company)
- UK agency releases tools to test AI model safety (TechCrunch)
💥 Disruption and Misinformation
- U.S. warns foreign adversaries will use AI to try to influence the 2024 election (AP)
- Red Cross: AI introduces risk of “unaccountable errors” in warfare (Fast Company)
- Study: Alexa, Siri, Google Assistant vulnerable to malicious commands (VentureBeat)
- A surge of companies claim to offer deepfake detection services, but their capabilities are largely untested (The Washington Post)
🔎 Opinions and Research
- How OpenAI stole Google’s thunder (Om Malik)
- Why Microsoft is still ahead of Google in the war for AI developers (VentureBeat)
- Google is building an AI future, but not for you and me (PC World)
- LLMs can’t save the old internet, but they can create a new one (Crunchbase News)
- Eric Schmidt: Why America needs an Apollo program for the age of AI (MIT Technology Review)
End Output
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Until next time, stay curious!
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