Five Top Tech Takeaways: Nvidia's Plunge, Claude 3.5, Napster-esque Legal Battles and McDonald's Ends AI Experiment

AI Sell-off?

Nvidia's AI-Fueled Surge Halts with 13% Stock Plunge

Source: CNN

Nvidia has lost its position as the world's most valuable listed company after a significant stock decline. The company's market capitalization fell from $3.34 trillion to $2.91 trillion in the past week, dropping Nvidia to third place behind Microsoft and Apple. The stock tumble is attributed to investor profit-taking and a cooling excitement over Nvidia's role in the AI revolution. Despite this setback, Nvidia's stock had surged 139% over the past year, fueled by its AI-powered chips. The broader market remained relatively stable, with gains in sectors like energy and financials balancing out Nvidia's decline.

• Stock Decline: Nvidia's market cap dropped by $430 billion, leading to its fall to third place among the world's most valuable companies.
• Investor Sentiment: The decline reflects typical volatility and profit-taking after significant gains, with a broader market showing stability.
• AI Hype: Nvidia's role in AI has driven substantial stock gains, but recent drops indicate a possible cooling of investor enthusiasm.

Claude 3.5 Sonnet: Anthropic’s Latest AI Model Outshines Competitors

Source: The Verge

Anthropic has introduced its latest AI model, Claude 3.5 Sonnet, positioning it as a strong competitor to OpenAI's GPT-4o and Google's Gemini. The new model is already available to users and developers, outperforming its predecessor, Claude 3 Opus, in various benchmarks. Claude 3.5 Sonnet excels in writing and translating code, handling complex workflows, interpreting charts, and transcribing text from images. Additionally, the model introduces a new feature called Artifacts, allowing users to interact and edit AI-generated content within the app. Anthropic aims to transform Claude into a comprehensive tool for businesses to manage knowledge and documents securely.

• New AI Model: Claude 3.5 Sonnet is launched, outperforming its predecessor and major competitors in several benchmarks.
• Enhanced Features: The model excels in multiple tasks, including coding, workflow management, and text transcription, with better understanding of humor and human-like writing.
• Artifacts Feature: Introduces interactive editing of AI-generated content within the app, signaling a move towards comprehensive business solutions.

Apple and Meta: Rivals to Collaborators in AI Push

Source: The Wall Street Journal

Apple is in talks with Meta to integrate Meta’s generative AI model into Apple Intelligence, the new AI system for iPhones and other devices. This collaboration, if finalized, would allow Meta to leverage Apple’s vast distribution network. Apple has already partnered with OpenAI and is exploring similar deals with Google, Anthropic, and Perplexity. The potential partnership between Apple and Meta marks a significant shift given their historical rivalry. Apple aims to offer multiple AI options to users, enabling personalized choices for various tasks. This strategic move helps Apple diversify its AI offerings and reduces reliance on a single partner.

• Potential Partnership: Apple and Meta are discussing integrating Meta’s AI model into Apple Intelligence, leveraging Apple's distribution.
• Diversification Strategy: Apple seeks multiple AI partnerships, including with OpenAI, Google, Anthropic, and Perplexity, to offer diverse AI capabilities.
• Historic Rivalry: The collaboration represents a notable shift in the relationship between Apple and Meta, historically competitors in the tech space.

Legal Battle Erupts Between Music Labels and AI Startups

Source: Yahoo Finance

Major record companies, including Sony Music Entertainment, Universal Music Group, and Warner Records, have filed lawsuits against AI music startups Suno and Udio for copyright infringement. The lawsuits, filed in federal courts in Boston and New York, allege that these AI song-generators are exploiting the works of artists without permission. Suno AI's CEO, Mikey Shulman, denies the claims, stating their technology generates new outputs without memorizing existing content. This legal action highlights ongoing tensions in the music industry regarding the use of AI, with concerns about legality and protecting artists' rights.

• Lawsuits Filed: Major record labels are suing AI startups Suno and Udio for alleged copyright infringement.
• Technology Defense: Suno AI claims its technology generates new outputs and does not replicate existing content.
• Industry Tensions: The lawsuits reflect broader concerns in the music industry about AI's impact on artists' rights and the legality of AI-generated content.

Fast Food Giant McDonald's Stops AI Drive-Thru Experiment

Source: The Guardian

McDonald's is discontinuing its test of AI chatbots in drive-thrus across over 100 US locations, ending a trial that began in 2021 with IBM. Despite no public reason given for the shutdown, McDonald's confirmed that a voice-ordering solution remains a future goal. The fast food industry has shown a strong interest in AI, with chains like Wendy's and Taco Bell also implementing AI technologies to reduce labor costs. However, AI's reliability has been questioned, with viral videos showcasing order inaccuracies. Additionally, the industry faces criticism for relying on outsourced labor to support AI systems.

• AI Test Ended: McDonald's ends its AI chatbot drive-thru test, impacting over 100 locations in the US.
• Future AI Plans: McDonald's and other fast food chains continue to explore AI solutions despite mixed results and reliability issues.
• Industry Trend: Fast food chains are increasingly adopting AI to cut labor costs, despite challenges with accuracy and reliance on outsourced labor.

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist who is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

Five Top Tech Takeaways: Apple Unveils AI at WWDC, OpenAI Pays VOX/Atlantic a Cut, Claude Comes to Canada and more!

Apple's AI

Apple Introduces 'Apple Intelligence' with Advanced AI Features

At WWDC 2024, Apple introduced "Apple Intelligence," a suite of AI features for iPhone, Mac, and other devices, to be released in the fall. Highlights include a more conversational Siri, AI-generated "Genmoji," and integration with OpenAI's GPT-4o for advanced queries. These features, designed to enhance user interaction and productivity, will operate primarily on-device for privacy, utilizing Apple's Private Cloud when necessary. Siri will now support more natural speech and typed commands, perform actions across apps, and assist with tasks like email composition and photo editing.

To see a 2-minute summary, check out CNETs time-saving montage (start at 9:27 for the AI-related announcements):

Key Takeaways:

1. Apple unveiled "Apple Intelligence," featuring enhanced AI capabilities for iPhone, Mac, and more.
2. Siri will become more conversational and capable of handling advanced tasks using OpenAI’s GPT-4o.
3. Privacy remains a priority, with AI processing on-device and through Apple's Private Cloud.

(Source: The Verge)

Claude AI Assistant Launches in Canada

Claude, Anthropic's advanced AI assistant, is now available in Canada through various platforms including Claude.ai, a free iOS app, and an API for developers. The service also offers a Team plan for collaborative use. Users can subscribe to Claude Pro for CA$28 per month to access all models and receive increased usage benefits. The Team plan, at CA$42 per user per month, requires a minimum of five users. This expansion aligns with Canada's commitment to responsible AI development and provides new opportunities for users to integrate advanced AI into their workflows.

Key Takeaways:

• Claude, an AI assistant by Anthropic, is now accessible in Canada via web, iOS app, and API.
• Claude Pro subscription offers enhanced features and usage for CA$28 per month.
• The Team plan provides a collaborative workspace for CA$42 per user per month, requiring a minimum of five users.

(Source: Anthropic)

US Regulators Probe Nvidia, Microsoft, and OpenAI for Antitrust Violations

The U.S. Department of Justice (DOJ) and Federal Trade Commission (FTC) are launching investigations into Nvidia, OpenAI, and Microsoft. The DOJ will focus on potential antitrust violations by Nvidia, while the FTC will probe Microsoft and OpenAI's actions. Specifically, the FTC is examining whether Microsoft structured its deal with Inflection AI to evade regulatory scrutiny. Microsoft's spokesperson asserts the company’s compliance with legal obligations. These probes highlight regulatory efforts to scrutinize AI ventures more rigorously and prevent potential antitrust violations.

Key Takeaways:

• The DOJ and FTC are investigating Nvidia, OpenAI, and Microsoft for potential antitrust violations.
• The FTC is specifically probing whether Microsoft’s deal with Inflection AI was structured to avoid regulatory oversight.
• Microsoft maintains that its agreements and transactions comply with legal requirements.

(Source: Yahoo Finance)

OpenAI Continues Media Expansion with New Licensing Agreements

OpenAI has secured licensing agreements with The Atlantic and Vox Media, allowing their content to train AI models and be shared within ChatGPT. This move follows similar deals with News Corp, Axel Springer, DotDash Meredith, the Financial Times, and The Associated Press, aimed at acquiring legal content for AI training and avoiding copyright issues. Terms for The Atlantic and Vox Media were not disclosed, but such agreements typically involve content attribution and financial compensation. Vox Media will use OpenAI's technology to enhance its commerce and advertising platforms, while The Atlantic plans to develop AI tools for journalism.

Key Takeaways:

• OpenAI signed content licensing agreements with The Atlantic and Vox Media for AI model training and sharing within ChatGPT.
• These deals aim to secure legal training data and prevent copyright lawsuits, following similar agreements with other major media companies.
• Vox Media and The Atlantic will use OpenAI's technology to enhance their digital products and develop AI tools for better journalism.

(Source: The Verge)

AI Meets Curation: Perplexity Pages Blend Automation and Human Input

Perplexity AI has launched "Perplexity Pages," a feature that transforms search queries into visually appealing, shareable web pages. Users can create detailed articles by entering prompts and selecting an audience type to tailor the content. The tool allows for customization, including rewriting, reformatting, and adding sections. These pages, which can include relevant media, are searchable on Google and sharable via links. Perplexity Pages aims to blend AI-driven content generation with human curation, offering a new way to produce and share information-rich web pages.

Key Takeaways:

• Perplexity AI's new feature converts search queries into detailed, shareable web pages.
• Users can customize the generated content and include media, making it searchable and shareable. 
• The feature blends AI content generation with human curation, emphasizing user input in organizing and presenting information.

(Source: TechCrunch)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist who is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

Five Top Tech Takeaways: Microsoft Unveil AI PCs, Google's $125B Cloud Glitch, Battle of the Bots, Glue Pizza, and GPT4 Outshines in Financial Forecasting

Make an image of a battle royale with the 5 robots with logos instead of heads. This includes the Google logo, Microsoft logo, OpenAI logo, Perplexity AI logo, and Anthropic logo

Battle of the Bots: WSJ's Comprehensive GenAI Evaluation 

A comprehensive test by the Wall Street Journal compared five top AI chatbots—OpenAI's ChatGPT, Microsoft's Copilot, Google's Gemini, Perplexity, and Anthropic's Claude—on everyday skills. The tests included tasks in health, finance, cooking, work writing, creative writing, summarization, current events, coding, and speed. Perplexity emerged as the overall winner, excelling in summarization and current events, while ChatGPT performed best in health advice and speed. Each chatbot demonstrated unique strengths and weaknesses, highlighting the rapid evolution and diverse capabilities of AI technology.

Key Takeaways:

• Perplexity outperformed other AI chatbots in summarization and current events tasks.
• Claude excelled at work and creative writing.
• ChatGPT had the fastest response time.

(Source: Wall Street Journal)

Author's note: 

The Wall Street Journal's exercise is a valuable reminder that organizations must conduct a thorough and rigorous analysis of Generative AI (GenAI) vendors, just as they would with any other software procurement. The article provides a solid foundation for testing and evaluating these tools. However, it is crucial to note that effective testing can only be carried out once the potential business benefits have been clearly identified.

To ensure a comprehensive evaluation, organizations should first determine which specific functions will utilize the AI-powered chatbots and establish clear guidelines on how they will be used and managed within the company. This groundwork will enable the development of targeted test prompts, allowing for a more accurate assessment of which chatbot is best suited to meet the organization's unique needs and requirements. By aligning the testing process with the identified business objectives, companies can make informed decisions when selecting the most appropriate GenAI vendor for their specific use cases.

Microsoft Unveils AI-Powered Copilot+ PCs

Microsoft introduced the Copilot+ PCs, a new category of AI-enhanced Windows PCs with advanced silicon offering up to 40+ TOPS, extended battery life, and innovative AI features. These PCs feature Recall for memory-like data retrieval, Cocreator for real-time AI image creation, and live audio translation from 40+ languages. Starting at $999, they will be available from June 18 and include models from Microsoft Surface and other major brands.

Key Takeaways

• Microsoft launched Copilot+ PCs, integrating advanced AI capabilities and powerful silicon.
• Features include Recall for data retrieval, Cocreator for AI-driven image creation, and live translation.
• The devices, starting at $999, will be available from June 18 from multiple major brands.

(Source: Microsoft)

From Glue on Pizza to Eating Rocks: Google's AI Under Fire

Google's new AI-generated search overviews have been widely mocked for providing bizarre and incorrect responses to user queries. Examples include recommending eating rocks based on a humor website, suggesting glue for pizza cheese, and sharing incorrect and offensive information about former President Obama. These errors highlight significant limitations and "hallucinations" in AI technology, prompting criticism and calls for better safeguards and accuracy in AI-generated content.

Key Takeaways

• Google's AI search overviews have produced absurd and incorrect answers, causing social media backlash.
• Errors included recommending glue for pizza and sharing false information about former President Obama.
• Google's AI issues underline broader challenges in AI technology, especially regarding accuracy and reliability.

GPT-4 Outshines Humans in Financial Forecasting

A study by the Booth School of Business at the University of Chicago found that OpenAI's GPT-4 outperforms human financial analysts in predicting earnings changes from financial statements. Using "chain-of-thought" prompts, GPT-4 achieved a 60% accuracy rate compared to the low 50% range of human analysts. Additionally, trading strategies based on GPT-4's forecasts yielded more profitable results than traditional stock market approaches, suggesting significant potential for AI in financial decision-making.

Key Takeaways

• GPT-4 surpasses human analysts in financial earnings predictions.
• The AI model achieved a 60% accuracy rate, higher than human analysts.
• GPT-4-based trading strategies generated higher profits than the stock market.

(Source: Business Insider)

Google's Cloud Glitch: UniSuper's $125 Billion Account Erased

Google inadvertently deleted the Google Cloud account of UniSuper, an Australian pension fund managing $125 billion. This incident left over half a million fund members without account access for about a week. UniSuper restored service via a backup account with another cloud provider. Google Cloud CEO Thomas Kurian and UniSuper CEO Peter Chun acknowledged the severity of the situation and assured measures have been taken to prevent future occurrences.

Key Takeaways:

• Google accidentally erased a $125 billion pension fund's Google Cloud account, affecting over half a million users.
• The issue was resolved using a backup account with another cloud provider.
• Google and UniSuper CEOs stated measures are in place to prevent similar incidents.

(Source: Yahoo)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist who is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.