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People walk behind the logo of SoftBank Corp in Tokyo.
Hard Numbers: SoftBank’s hardy investment, Grok gets cash infusion, Humane’s rescue plan, Kenya’s tech upgrade, News Corp and OpenAI strike a deal
6 billion: Elon Musk’s AI startup, xAI, has raised $6 billion from venture capital investors such as Andreessen Horowitz and Sequoia Capital, plus Saudi Arabia’s Prince Alwaleed bin Talal and Kingdom Holding Company. The new funding round boosts the value of xAI, which makes the AI chatbot Grok, to $24 billion. Musk is a cofounder of OpenAI but severed ties with the firm in 2018 and has since sued the ChatGPT maker, alleging it abandoned its founding principles.
750 million: Humane, the company that recently released an AI-powered pin to scathing reviews, is reportedly looking for a buyer to swoop in. While customers have to cough up $699 for the signature pin, a corporate buyer would need to pay between $750 million and $1 billion — if the company’s current management fetches any interest, that is.
1 billion: Microsoft and the UAE-based tech giant G42 are pouring $1 billion into a geothermal-powered data center in Kenya. This East African investment is the first big announcement since Microsoft invested $1.5 billion in G42 in April, a deal brokered by the Biden administration. Microsoft and G42 also pledged to work on local language and skills training initiatives with the Kenyan government and companies in the country.
250 million: OpenAI struck a licensing deal with News Corp., the parent company of The Wall Street Journal, reportedly worth $250 million over five years. News Corp’s stock rose on the announcement, and the deal represents a burgeoning revenue stream for news companies. But the deal isn’t without critics: The Information’s founder Jessica Lessin wrote that publishers like News Corp need to know their worth with AI companies, hungry for content, and not rush into any deal for “relative pennies.”
FILE PHOTO: A flare burns excess natural gas in the Permian Basin in Loving County, Texas, U.S. November 23, 2019. Picture taken November 23, 2019.
Hard Numbers: Unnatural gas needs, Google’s data centers, Homeland Security’s new board, Japan’s new LLM
8.5 billion: Rising energy usage from AI data centers could lead to additional demand for natural gas of up to 8.5 billion cubic feet per day, according to an investment bank estimate. Generative AI requires high energy and water demands to power and cool expansive data centers, which climate advocates have warned could exacerbate climate change.
32 billion: Google is pouring $3 billion into data center projects to power its AI system. That budget includes $2 billion for a new data center in Fort Wayne, Ind., and $1 billion to expand three existing ones in Virginia. In earnings reports this week, Google, Meta, and Microsoft disclosed that they had spent $32 billion on data centers and related capital expenditures in the first quarter alone.
22: The US Department of Homeland Security announced a new Artificial Intelligence Safety and Security Board with 22 members including the CEOs of Alphabet (Sundar Pichai), Anthropic (Dario Amodei), OpenAI (Sam Altman), Microsoft (Satya Nadella), and Nvidia (Jensen Huang). The goal: to advise Secretary Alejandro Mayorkas on “safe and secure development and deployment of AI technology in our nation’s critical infrastructure.”
960 million: SoftBank, the Japanese technology conglomerate, plans to pour $960 million to upgrade its computing facilities in the next two years in order to boost its AI capabilities. The company’s broad ambitions include funding and developing a large language model that’s “world-class” and geared specifically toward the Japanese language.