😯 AI bubble about to Pop?!

Also: OpenAI's 'AI Health Coach'

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Evolving AI
July 10, 2024

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Welcome, AI enthusiasts

The AI industry needs to earn $600 billion per year to cover its massive hardware expenditures, intensifying fears of an AI bubble in the wake of a Sequoia report. OpenAI's venture fund and Arianna Huffington's Thrive Global are backing a new startup, Thrive AI Health, which aims to build an AI health coach to promote healthier lifestyles. Additionally, the Chinese AI company SenseTime has introduced its new multimodal AI model, SenseNova 5.0. Let’s dive in!

In today’s insights:

  • Is the AI Bubble about to Pop?!

  • New Thrive AI Health Coach funded by the OpenAI Startup Fund

  • SenseTime unveils SenseNova 5o, China's first real-time multimodal AI model to rival GPT-4o

Read time: 4 minutes

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Evolving AI: The AI industry needs $600B in annual revenue to sustain its infrastructure investments, raising fears of a bubble.

Key Points:

  • AI companies must generate $600B annually to cover massive infrastructure costs.

  • Major tech investments in AI hardware may not yield quick returns.

  • Intense competition and speculative investments could lead to financial instability.

Details:

The AI sector is under scrutiny as analysts like David Cahn from Sequoia Capital highlight the immense financial burden required to maintain AI infrastructure. With companies like Nvidia earning significant revenue from AI datacenter hardware and cloud providers like Microsoft heavily investing in GPU stockpiles, the industry's sustainability is in question. Despite growth from entities like OpenAI, which increased its revenue to $3.4 billion in 2024, there remains a substantial gap in achieving the needed $600 billion annual revenue. The influx of new players and rapid devaluation of older processors could exacerbate price competition, adding to financial risks.

Why It Matters:

Are we on the verge of an AI bubble? It depends. For those not writing $10 billion checks, it’s a different game. AI creates opportunities for professionals and outsized returns for companies leveraging the big LLMs. There will be "failures and false starts," and some AI-related stocks will deflate. But AI will probably continue to grow. The technology is coming. Why? Because this isn't a game of investing to get a predictable revenue return. This is a "winner takes 80% of the market share and gets astonishing margins" play.

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Evolving AI: OpenAI Startup Fund and Arianna Huffington back a new AI health coach venture focused on chronic conditions.

Key Points:

  • Thrive AI Health aims to democratize access to expert-level health coaching using AI.

  • The venture has partnerships with leading academic institutions and medical centers.

  • The AI coach will focus on sleep, food, fitness, stress management, and connection.

Details:

Thrive AI Health, supported by the OpenAI Startup Fund and Arianna Huffington's Thrive Global, plans to revolutionize health coaching with AI. The new venture aims to address chronic diseases by providing personalized, proactive, and data-driven coaching. Initial partners include Stanford Medicine and the Rockefeller Neuroscience Institute. The AI Health Coach will deliver personalized advice on key health behaviors via a mobile app and Thrive Global's enterprise products. DeCarlos Love, former Google product leader, will serve as CEO, leveraging his experience with AI and health technologies. The initiative also focuses on health equity with Gbenga Ogedegbe from NYU Langone as an adviser.

Why It Matters:

Thrive AI Health's AI-driven approach could significantly impact global health by reducing chronic diseases and healthcare costs. This venture represents a step toward more accessible and effective health solutions for everyone.

Source: SenseTime

Evolving AI: SenseTime reveals SenseNova 5o, China’s first real-time multimodal AI model, rivaling GPT-4o in capabilities.

Key Points:

  • SenseNova 5o processes audio, text, image, and video data for real-time interactions.

  • The updated SenseNova 5.5 boosts performance by 30%, enhancing reasoning and language skills.

  • SenseTime’s SenseChat Lite-5.5 and Vimi AI avatar video generator highlight advancements in speed and customization.

Details:

SenseTime has introduced SenseNova 5o at the World Artificial Intelligence Conference, marking China’s first real-time multimodal AI model. This model can handle audio, text, image, and video data, enabling users to interact seamlessly through natural conversation. In addition, SenseTime launched SenseNova 5.5, an improved language model with a 30% performance boost over its predecessor, emphasizing mathematical reasoning, English proficiency, and prompt following. These upgrades result from training with over ten terabytes of high-quality data, enhancing the model’s interactivity and core functions. SenseTime’s innovations extend to edge-based models with SenseChat Lite-5.5, offering faster inference times and increased processing speeds. The Vimi AI avatar video generator adds another layer of versatility, creating one-minute clips from photos with customizable expressions, lighting, and backgrounds.

Why It Matters:

Over the past few months, we’ve seen China edging closer and closer to the state-of-the-art models in the West. They’re in the race and here to stay. It will be interesting to see if they can maintain this momentum despite the increasing pressure from the West, which aims to make it difficult for them to access compute resources, as well as imposing outright bans on Western models to prevent intellectual property theft.

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