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š” Outrage for Bidens final AI crackdown
š OpenAIās AI regulation blueprint
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š AI STOCK TRACKER
AI and tech stocks showed resilience on Monday as the market opened lower on growing concerns that the FED may make interest rates higher for longer. This led to a strong move in the dollar index and a weakness in speculative assets. However, as the session progressed most stocks recovered to end the day slightly red.
LATEST IN AI
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š” Outrage for Bidens final AI crackdown
šØ Our Report ā With just one week left in office, the Biden administration has announced a new, 168-page frameworkācalled The Interim Final Rule on AI Diffusionāwhich introduces new restrictions and guidelines for exporting US-made, advanced, AI chips.
š Key Points:
The new rules split countries into 3: Group 1 includes US allies, Japan and the UK, and isnāt affected; Group 2 includes US rivals China and Russia, and faces further restrictions (they already canāt buy advanced AI chips).
Group 3 includes Mexico, Portugal, and Israel, which have a 50,000 cap on how many chips they can buy, which is designed to stop countries like China from buying chips through them.
The frameworkāopen to public comment for 120 daysāaims to keep AI development under US (and its allies) control, and protect national security as, āin the wrong hands,ā AI systems could āexacerbate security risks.ā
š Relevance ā Although Trump is taking office next week, meaning chip export rules could look entirely different by the end of the month, in response to the new guidelines, NVIDIA (which, with a 90% share of the AI chips market, will likely be the most affected) has issued a scathing statement, calling the proposed rules āunprecedented and misguided,ā warning they could āderailā innovation and economic growth worldwide and backing the Trump administration by looking forward to āa return to policies that strengthen American leadership, bolster our economy and preserve our competitive edge in AI and beyond.ā
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š OpenAIās AI regulation blueprint
šØ Our Report ā OpenAI has published a living, 15-page whitepaperācalled the āEconomic Blueprintāāwhich outlines its vision for AI development and what the US government and its allies must do to stay ahead of China in the AI race.
š Key Points:
The document states that "chips, data, and energy are key,ā and there's an āestimated $175B in global fundsā for AI projects, and āif the US doesn't attract those funds, they will go to China.ā
It also demands an increase in federal spending on power and data transmission to fuel the data centers needed to develop and power AI systems, and funding for ānew energy sources,ā like solar and nuclear.
They also make the controversial case that developers should be able to use āpublically available informationā (including copyrighted material) to train AI models, arguing that it would be āimpossibleā without this.
š Relevance ā Over the last year, OpenAI has tripled its lobbying budget (from $260,000 in 2023 to $800,000 in 2024), brought former government officials into its executive team, and formed partnerships with the Pentagon and the US military, perhaps highlighting an intention to influence US AI policy. And, with the introduction of the āEconomic Blueprintā coming just a week before Trump comes into office, was this a strategic move to curry favor with the new administration (which is expected to prioritize the advancement of tech, with Trump appointing former PayPal executive, David Sacks, as its AI and crypto czar)?
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š§āš» Ex-Meta VP leads new Microsoft AI team
Microsoft has created a new engineering group (which it's calling the CoreAI ā Platform and Tools division) which will be solely focused on AI, and led by former Meta VP and global head of engineering, Jay Parikh.
The new divisionāwhich comprises employees from Microsoft's existing developer division, AI platform, and CTO officeāwill focus on building AI infrastructure and software for both Microsoft and its customers.
Microsoft CEO, Satya Nadella, called this move āthirty years of change, compressed into three yearsā as he outlined his plans to ābuild an AI-first app stackā and āreshape all application categories.ā
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