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Illustration of the Amazon logo next to a phone with the flagship artificial intelligence model codenamed OLYMPUS, on it.
Amazon is set to announce its newest AI model
The multimodal model, codenamed Olympus, can reportedly search video archives using text commands. It’s unclear whether it can generate video content like OpenAI’s Sora or Meta’s Movie Gen, text-to-video models that are still not broadly released to the public.
But the new model is a sign not only of Amazon’s internal ambitions but also its potentially decreasing reliance on a key investment: Anthropic, the maker of the chatbot Claude.
On Nov. 22, Amazon announced it’s investing another $4 billion into Anthropic, doubling its total investment to $8 billion. In exchange, Anthropic would commit to using Amazon’s Tranium series of chips, Amazon’s “moonshot” attempt to rival Nvidia, the world’s leading AI chip designer.
Amazon already has an enterprise chatbot called Q, as well as AI business solutions for companies through its Amazon Web Services cloud offerings. Olympus could be announced as soon as the annual AWS re:Invent conference being held this week in Las Vegas, Nevada. Matt Garman, who took over as CEO of AWS in May, will address conference-goers on Tuesday and disclose “real, needle-moving changes” on AI.
If Olympus is indeed a business-to-business offering from AWS, then perhaps Anthropic’s Claude will continue being Amazon’s consumer-facing bet while it focuses on the more lucrative work of selling to other companies.
Recently launched Amazon artificial intelligence processors that aim to tackle Nvidia and the chips made by the other hyperscalers such as Microsoft and Google are shown at an Amazon lab in Austin, Texas, in July 2024.
Amazon’s grand chip plans
Amazon is working on the third generation of its AI chips, called the Trainium2, which industry insiders told Bloomberg was a “make-or-break moment” for the company’s chip ambitions.
Luckily, they already have one important customer’s buy-in: Anthropic, which makes the chatbot Claude. On Nov. 22, Amazon announced it’s investing another $4 billion into Anthropic, doubling its total investment to $8 billion. As part of the deal, the Claude maker — perhaps the main rival to OpenAI — will continue to use Amazon’s Trainium series of chips. Amazon makes and invests in AI software and has the cloud infrastructure needed for AI – so if it can conquer the chip industry and produce chips comparable to the top models from Nvidia, it could become a dominant player in artificial intelligence.A man holds a laptop computer as cyber code is projected on him in this illustration of a hacker.
Hard Numbers: Hacks galore, Hollywood dreams, US on top, Pokémon Go scan the world
3 million: Evidently, there’s hot demand for AI-related scripts in Hollywood. A thriller about artificial intelligence from a relatively unknown screenwriter named Natan Dotan just sold for $1.25 million, a number that will rise to $3 million if it’s turned into a film. Despite Hollywood’s perennial discomfort with AI infiltrating the film industry, maybe all of the hubbub has got them thinking that audiences will turn out for a good old-fashioned AI thriller.
36: Stanford researchers analyzed the AI capabilities of 36 countries and determined that the US significantly leads in most of the 42 areas studied — including research, private investment, and notable machine learning models. China, which leads in patents and journal citations, came in second, followed by the UK, India, and the UAE.
10 million: Niantic, the developer of the augmented reality game Pokémon Go, announced that it’s building an AI model to make a 3D world map using location data submitted by the game’s users. The company said it already has 10 million scanned locations.A demonstrator holds a placard during a protest outside the Amazon headquarters during Black Friday in London, Britain, November 24, 2023.
Global Amazon strike planned for Black Friday and Cyber Monday
Amazon workers around the globe are planning to protest or strike on Black Friday and Cyber Monday – the two busiest shopping days of the year. This is the fourth annual Make America Pay protest to disrupt Amazon’s holiday operations, and it’s also expected to be the largest, with warehouse workers and delivery drivers in 20 countries taking part.
Disruptions are planned in major metropolitan hubs in countries like the US, India, Turkey, Germany, Italy, Spain, Canada, Japan, Brazil and many more. Strikers are calling for Amazon – which is owned by billionaire Jeff Bezos – to pay fairer wages and more taxes, end union busting, and commit to environmental sustainability.
The strike is being spearheaded by a global union for service industries encompassing 80 trade unions and worker rights groups.
In London, protesters will deliver a petition with more than 110,000 signatures to its UK headquarters, followed by a march to Downing Street. The petition calls for the government to stop tax breaks for Amazon and other big corporations. Amazon is facing similar calls from the EU, as countries increasingly pressure multinational corporations and tech giants that make profits within their borders to pay into their governments’ coffers.
Hard Numbers: Hey big spender, an iPhone boost, Google’s robot coders, Super Micro’s super downfall
200 billion: Capital expenditures from four of the largest US tech companies — Amazon, Microsoft, Meta, and Google — are set to exceed $200 billion this year, inflated by enormous spending on artificial intelligence software and hardware investments. Amazon’s spending alone surged 81% in a year, leading CEO Andy Jassy to assure investors the company’s bets will pay off. These are record sums at a time when Wall Street seems hesitant to keep rewarding excessive spending on AI.
46 billion: Apple reversed its fortunes after a bad year of iPhone sales, selling more than $46 billion of its signature smartphone between July and September — a 6% increase year over year. The company’s new iPhone 16 is part of its push into artificial intelligence — marketed as a phone capable of handling all of its Apple Intelligence features, such as a supercharged Siri, new writing tools, and call transcription — which started rolling out last week. The company hopes that AI can convince customers old and new that it’s time to pay up for a new iPhone, which starts at $799.
25: More than 25% of all new code produced by Google is written by artificial intelligence, according to CEO Sundar Pichai. AI produces the code, which is then reviewed and accepted by human engineers. A recent Stack Overflow survey found that 76% of all software developers are using or are planning to use AI to code.
45: Super Micro Computer, a key supplier of Nvidia servers, saw its stock fall 45% after its auditor, Ernst & Young, resigned because it was “unwilling to be associated with the financial statements prepared by management.” Once one of the hottest AI stocks, the company has now wiped out all of its 2024 gains.SUQIAN, CHINA - MARCH 4, 2024 - Illustration Mistral AI, March 4, 2024, Suqian, Jiangsu Province, China.
Hard Numbers: Mistral gets money, Amazon’s investments, Disco time!, Wary of AI news
6 billion: Europe has just one major player in the generative AI space: Mistral. The French startup raised a new $640 million funding round last week that boosts its overall value to $6 billion. While OpenAI, Anthropic, and other startups have largely proprietary or closed-source models, Mistral has focused on open-source models, marking a more open approach that might suit regulators in Brussels better.
230 million: On Thursday,Amazon pledged $230 million to invest in generative AI startups. That number includes $80 million for its second Amazon Web Services Generative AI Accelerator program, designed to incentivise AI startups to use Amazon’s cloud services.
5: Disco Corp., a Japanese semiconductor company, has seen its stock quintuple since 2022 on increased demand for chip packaging services. The profit margins are thinner for packaging compared with other facets of the chip industry, but increasingly in demand with ever-shrinking chip sizes.
52: Roughly half of Americans are okay with news written by AI. Some 52% of US respondents told surveyors at the Reuters Institute for the Study of Journalism that they’re uncomfortable with news largely written by AI. Even more respondents felt uncomfortable in the UK, with 63% shaking their heads at AI-written news. Trust in the media is at historic lows in the US, and ambivalence to whether it’s written by humans or machines may be the clearest sign yet.The G42 logo.
Hard Numbers: Microsoft’s big Gulf investment, Amazon’s ambitions, Mammogram-plus, Adobe pays up, Educating Don Beyer
1.5 billion: Microsoft has announced a deal to invest $1.5 billion in G42, an artificial intelligence firm based in the United Arab Emirates that recently cut ties with Chinese suppliers that had raised US security concerns. Washington and Abu Dhabi relations have been strained over the UAE’s ties to Chinese tech companies. But this deal – which grants Microsoft a minority stake in the company – could signal a new era of relations with the US.
33: Amazon is talking about artificial intelligence – like, a lot. In his recently published annual letter to shareholders, Amazon CEO Andy Jassy mentioned AI 33 times. The company invested $4 billion in Anthropic, which makes the Claude chatbot, and will host Anthropic on Amazon Web Services. Jassy said the company wants to build AI models more so than applications (think GPT-4 instead of ChatGPT) and sell directly to enterprise clients.
40: Clinics are starting to offer an AI-assisted add-on to typical mammograms. Interested patients typically incur an out-of-pocket charge between $40 and $100 to have an AI model scan their breast screening for additional insights — even, possibly, early breast cancer detection.
3: Adobe is planning to compete with OpenAI’s Sora video model. To do so, it’s offering photographers and videographers $3 per minute to upload videos of people doing everyday activities like walking around or sitting down, or simple shots of hands, feet, or eyes to train their new generative AI model. It’s an expensive but cautious approach intended to build up a comprehensive database while staying on the right side of copyright law and avoiding potential imbroglios like the one OpenAI faces for using YouTube videos to train its models
73: Congressman Don Beyer, a Democrat from Virginia, decided he wanted to return to school to learn more about AI. So, that’s what he did. The 73-year-old car dealership mogul-turned-politician recently enrolled in a master’s degree program in machine learning at George Mason University. He’s even learning to code, which he says is helping him better think about all kinds of problems in Washington.Google's Gemini home page displayed on a smartphone in a photo illustration.
Hard Numbers: Pay for Google?, Indonesian investment, Amazon walks out on AI, Scraping YouTube
175 billion: Google said it made $175 billion in revenue from its search engine and related advertising last year, but is it ready to risk the golden goose? The company is reportedly considering charging for premium features on its search engine, including AI-assisted search (its traditional search engine would remain free). We’ve previously tested Perplexity, one of the companies trying to uproot Google’s search dominance with artificial intelligence, and you can read our review here.
200 million: The chipmaker Nvidia is teaming up with Indonesian telecom company Indosat to build a $200 million data center for artificial intelligence in the city of Surakarta, according to Indonesia’s communications minister. This news comes weeks after AI played a central role in the country’s presidential election, and it represents a major investment from one of the world’s richest tech companies in a key emerging market as Indonesia seeks to modernize its economy.
1,000: Amazon’s Just Walk Out in-store AI system for cashier-less grocery store checkout relied heavily on more than 1,000 contractors in India manually checking that the checkout transactions were accurate. Now, Amazon has announced it’s ditching the technology, which was being used in 60 Amazon-branded grocery stores and two Whole Foods stores.
1 million: One OpenAI team reportedly transcribed more than 1 million hours of YouTube videos to train its GPT-4 large language model. The company built a speech recognition tool called Whisper to handle the massive load, a move that may have violated YouTube's terms of use. YouTube parent company Google is a major rival to OpenAI in developing generative AI. Google hasn’t filed suit yet, but legal action could eventually come.