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AdvertisementElon Musk's AI startup, xAI, has been valued at $50 billion, The Wall Street Journal reported. xAI's valuation has doubled since the spring, surpassing the $44 billion Musk paid for Twitter. Elon Musk's AI startup, xAI, has reportedly been valued at $50 billion — $6 billion more than what the billionaire paid to acquire Twitter, the social media platform now known as X. AdvertisementThe new valuation means xAI has surpassed the $44 billion Musk paid for Twitter back in October 2022. xAI previously raised a $6 billion Series B from A16z and Sequoia Capital at a $24 billion post-money valuation.
Persons: Andreessen Horowitz, Elon, xAI, Musk, Sam Altman, OpenAI Organizations: Elon, Street Journal, Twitter, Sequoia Capital, Fidelity, The, Equity Partners, Qatar Investment Authority, Microsoft Locations: A16z
AdvertisementRolls-Royce is in talks with potential customers for its nuclear reactors, per the Financial Times. The company said the reactors could provide energy for data centers, mining, and space missions. Rolls-Royce is in early-stage talks with potential customers for its compact nuclear reactors, which are designed to power data centers on Earth and one day to be sent into space, the Financial Times reported. Big Tech companies — including Google, Amazon, and Microsoft — have expressed interest in nuclear power to meet AI's high energy demands. In July 2024, Rolls-Royce was awarded funding from the agency's National Space Innovation Programme, or NSIP, for space nuclear power.
Persons: Royce, Jake Thompson, Microsoft —, Thompson Organizations: Financial Times, Business, Big Tech, Google, Microsoft, Royce, UK Space Agency, Innovation
Ex-Google CEO Eric Schmidt says there's "no evidence" of an AI slowdown. AdvertisementEric Schmidt says there's "no evidence" artificial intelligence scaling laws are stopping as some in Silicon Valley worry about an AI slowdown. He said there will be "two or three more turns of the crank of these large models" over the next five years, referring to improvements in large language models. Related Video Why "deployment of AI is top of mind for everybody," according to IBM's Jonathan Adashek"There's no evidence that the scaling laws, as they're called, have begun to stop. AI scaling laws are the theoretical rules that broadly state models will continue to improve with more training data and greater computing power.
Persons: Eric Schmidt, Schmidt, LLMs, , IBM's Jonathan Adashek, we're, OpenAI's, OpenAI, Claude, Gary Marcus, Sam Altman, Anthropic Organizations: Google, Service, Bloomberg, New York University, OpenAI, Business Locations: Silicon
download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementIt also undermines a core assumption about the future of generative AI: If you add more data and computing power, you get smarter and more powerful AI models. Top AI players have eye-popping valuations based on the promise that AI models will keep getting smarter and better with time. Getty Images; Chelsea Jia Feng/BISo what's holding AI models back from making another big jump? Anthony Scaramucci tells BI Trump's economic plans could cause a 1920s-style stock-market crash .
Persons: , OpenAI's, Fabrice Beaulieu, Justin Sullivan, That's, Insider's Hasan Chowdhury, Beatrice Nolan, Orion, OpenAI, Chelsea Jia Feng, Anthony Scaramucci, Trump, Viktor Kovalchuk, Michael M, Robert Perry, Rebecca Zisser, what's, Donald Trump —, Morgan Stanley, Carta, Jed Finn, Goldman Sachs, Jeremy Siegel, Trump's, Jeff Bottari, Donald Trump, Joe Rogan, elect's, Elon Musk, Tesla's, Musk, Timo Lenzen, Juan Merchan, Donald Trump's, Jack Teixeira, Dan DeFrancesco, Grace Lett, Ella Hopkins, Hallam Bullock, Amanda Yen, Milan Sehmbi Organizations: Business, Service, Orion, Getty, Companies, New York Times, Wall, Getty Images, Elon, BI, Trump Locations: GPT, undergrad, Mexico, New York, Ukraine, Massachusetts, Chicago, London
It reignites a debate about the feasibility of developing increasingly advanced models and AI scaling laws — the theoretical rules about how the models improve. It remains to be seen how smart an AI model can get when it has that much capital thrown at it. There could also be strategies to make AI models smarter by enhancing the inference portion of development. The model OpenAI released in September — called OpenAI o1 — focused more on inference improvements. Still, it's clear that, like Altman, much of the industry remains firm in its conviction that scaling laws are the driver of AI performance.
Persons: OpenAI's, It's, , Sam Altman, Fabrice Beaulieu, Altman, OpenAI, Andrew Caballero, Reynolds, Ion Stoica, Gary Marcus, Anthropic, Marcus, Claude, Ilya Sutskever, Dario Amodei, Kevin Scott, we're, Scott, they've Organizations: Service, OpenAI's, Orion, Business, Getty, Companies, New York University, Reuters, Sequoia, o1 Locations: GPT, Silicon Valley, AFP
Tesla stock surged 12% in premarket trading following Trump's election victory. Musk's big bet on Trump has boosted analysts' confidence in Tesla's future prospects. AdvertisementElon Musk's big bet on Donald Trump is already paying off for Tesla. AdvertisementIn his victory speech early Wednesday, Trump paid tribute to Musk's efforts, calling him a "super genius" and a "new star." Trump win an 'overall negative' for EV industryDespite the surge in Tesla shares, Trump's victory could be bad news for the wider EV market.
Persons: Elon Musk, , Elon, Donald Trump, Dan Ives, Musk, Gene Munster, Munster, Trump, Tesla's robotaxis Garrett Nelson, Ives, Nelson, Tesla, BYD Organizations: Trump, Service, Fox News, CNN, Electoral, Wedbush Securities, Tesla, Deepwater Asset Management, EV company's, Tesla's, CFRA Research, EV, Business Locations: Tesla, Butler , Pennsylvania, China
Business leaders have been reacting to Donald Trump's presidential election victory. Silicon Valley was politically divided in the run-up to the election. Throughout the campaign, Silicon Valley has been divided on which candidate to back. Although Silicon Valley has historically leaned left, some of tech's biggest names, including Tesla CEO Elon Musk and venture capitalist David Sacks, tilted right this election season. Here is what some of the wealthiest and most influential business figures have to say about the election outcome.
Persons: Donald Trump's, , Elon Musk, David Sacks, Harris, VCs, Trump, Joe Biden's Organizations: Service, Fox News, CNN, Trump, Electoral, Tesla, Labor Locations: Silicon, Ukraine
Silicon Valley was politically divided in the run-up to the election. Here is what some of the most influential business figures have to say about the election outcome. Throughout the campaign, Silicon Valley has been divided on which candidate to back. Although Silicon Valley has historically leaned left, some of tech's biggest names, including Tesla CEO Elon Musk and venture capitalist David Sacks, veered right this election season. AdvertisementHere is what some of the wealthiest and most influential business figures have to say about the election outcome.
Persons: Donald Trump's, , Elon Musk, David Sacks, Harris, VCs Organizations: Service, Tesla Locations: Silicon
OpenAI has hired Meta's former hardware lead to head up its robotics team. Caitlin Kalinowski previously led Meta's AR glasses hardware team. Caitlin Kalinowski, who served as Meta's head of AR glasses hardware until July, said she was joining OpenAI to lead the company's robotics and consumer hardware efforts. "Thank you to the OpenAI team, Sam, Kevin Weil, PW, and to my friends and colleagues in engineering and beyond!" In May, Forbes reported that OpenAI had been hiring research engineers to rebuild the previously abandoned robotics team, something the company later confirmed.
Persons: OpenAI, Caitlin Kalinowski, Kalinowski, , Sam, Kevin Weil, Orion, Jony, Laurene Powell Jobs, Steve Jobs Organizations: Service, Orion, Forbes, Intelligence, Apple, The New York Times, Business
He doesn't plan on giving his children smartphones until they leave home. Archer is part of a nationwide parents pact that aims to delay giving children smartphones. I have two children, one 9-year-old and one 7-year-old, and I'm not planning to give them smartphones until they leave home. AdvertisementI don't judge parents who already have given their children smartphones. Collective actionI recently signed up for the Smartphone Free Childhood Pact, a group of parents who pledge to delay giving their children smartphones.
Persons: Rob Archer, Archer, , I'm, you'll, we've, I've, they're, it's Organizations: Service, Pact Locations: London
Sam Altman says he prioritizes talent over age in his hiring decisions. The job market in Big Tech is increasingly polarized with many job seekers facing a bleak outlook. AdvertisementOpenAI CEO Sam Altman says his hiring strategy is focused on talent over age. Advertisement"You want both, and I think what you really want is just like an extremely high talent bar of people at any age, " Altman said. While Altman may prioritize talent over age at OpenAI, some older tech employees say they are experiencing ageism in the workforce.
Persons: Sam Altman, , Harry Stebbings's, Altman, wouldn't, Noam Shazeer, Mustafa Suleyman, Karen Simonyan, Zers Organizations: Big Tech, Service, Tech, Google, Microsoft, BI Locations: OpenAI
Companies beat expectations, with some boosted by large cloud growth. AdvertisementThe tech giants Meta, Alphabet, Amazon, Apple, and Microsoft reported earnings this week, and investors were laser-focused on the results of AI investments. Cloud is kingMicrosoft, Alphabet, and Amazon saw significant growth in their cloud businesses, fueled by increased demand. Jeremy Goldman, EMARKETER's senior director of briefings, told BI that Microsoft's cloud business had decelerated from the "breakneck pace" of previous quarters. Related storiesWhile Google reported stronger cloud growth, Microsoft still leads it in cloud market share, and both are behind Amazon Web Services.
Persons: , Kate Leaman, Jeremy Goldman, EMARKETER's, Amy Hood, Dan Romanoff, Andy Jassy, Tracy Woo, Forrester, AWS's, Jassy, Rufus, Sundar Pichai, Pichai, Mark Zuckerberg, Hood, Michael Field, Jaejune Kim, Lisa Su, we've Organizations: Apple, Companies, Service, Microsoft, Amazon, Morningstar, Google, Amazon Web, Amazon Web Services, Investment, Big Tech, Bank of America Securities, Meta, Nvidia, SK Hynix, Samsung, AMD, Services
Microsoft leads Google in cloud market share, while Amazon Web Services is at the top. AdvertisementMicrosoft publicly accused Google of running "shadow campaigns" to undermine its business and influence cloud regulation in Europe, in an escalation of the tech giants' rivalry. A Google spokesperson told Business Insider the company had been "very public" about concerns with Microsoft's cloud licensing. In the second quarter, Google Cloud generated $10.35 billion in revenue, while Microsoft's Azure, included as part of the company's Intelligent Cloud group, reported $28.5 billion in revenue. AdvertisementIn 2023, Google Cloud generated $33.7 billion in sales, while Microsoft's Intelligent Cloud group reported $96.8 billion in sales.
Persons: , Rima Alaily, Alaily, Nicky Stewart, Stewart Organizations: Microsoft, Google, Amazon, Service, Cloud Coalition, Open Cloud Coalition, European Commission, Big Tech, Amazon Web Services, Department of Justice, Games Locations: Europe
A mother is suing Character.AI after her son died by suicide moments after talking to its chatbot. Character AI's founders were re-hired by Google as part of a deal reportedly worth $2.7 billion. Garcia blames the chatbot for her son's death and, in the lawsuit against Character.AI, alleged negligence, wrongful death, and deceptive trade practices. AdvertisementAjder also said Character.AI had faced some public criticism over its chatbot before Google closed the deal. A Google spokesperson told Reuters the company was not involved in developing Character.AI's products.
Persons: Character.AI, , Sewell Setzer, Megan Garcia, Garcia, Setzer, Jain, Megan Garcia's, Character.AI Character.AI, Noam Shazeer, Daniel De Freitas, Shazeer, De Freitas, Henry Ajder, wasn't, Ajder, it's Organizations: Google, Service, Business, BI, Tech, Law Project, Trust, Safety, Prevention, Street Journal, Reuters Locations: Character.AI
TSMC halted shipments to a client after its chips were found in Huawei products, per reports. Min-yen Chiang, a researcher, told BI it raises the questions about a "shadow network" of chip supply. TSMC, Huawei, and the Commerce Department did not immediately respond to Business Insider's requests for comments. Related storiesA 'shadow network' of chipsThe report adds to US concerns that Huawei is potentially obtaining advanced chips despite being blacklisted since 2020. "This question is slightly different than whether Huawei got restricted chips from TSMC through illegal channels," she told GZERO Media, a subsidiary of the Eurasia Group.
Persons: Chiang, , TSMC, John Moolenaar, Moolenaar, Kate Leaman, Leaman, JW Kuo, Xiaomeng Lu, Lu Organizations: Huawei, Service, Taiwan Semiconductor Manufacturing Company, Huawei Technologies, AFP, Bloomberg, Chinese Communist Party, CCP, BIS, Commerce Department, US Commerce Department, Apple, Nvidia, Export, US Commerce, agency's Bureau of Industry, Security, Eurasia Group, GZERO Media Locations: Taipei
Jack Sweeney's Threads accounts that track the flight paths of private jets have been suspended. AdvertisementJack Sweeney, a college student who tracks the private jets of several high-profile people, including Elon Musk and Mark Zuckerberg, says his Threads accounts have been suspended. He said he received no warnings or communications from the Big Tech company before the accounts were suspended. AdvertisementThe college student first made headlines in 2022 after Musk offered him money to stop publicly sharing his flight information. In December 2022, Sweeney's jet-tracking accounts were suspended by X. Musk, who took over the social media company months earlier, called the accounts a "physical safety violation."
Persons: Jack, Elon Musk, Taylor Swift, , Jack Sweeney, Mark Zuckerberg, Sweeney, Kim Kardashian, Donald Trump, Zuckerberg, Swift, Musk Organizations: Meta, Service, Elon, Big Tech, Meta's, Business, US Federal Aviation Administration, Twitter, University of Central, X Locations: University of Central Florida, Orlando
Analysts told BI it points to continued AI chip growth in the short to medium term. ASML sells large lithography machines — which print circuit patterns onto silicon wafers — to chip manufacturers, including TSMC, Samsung, and Intel. Its customers include Nvidia, the GPU designer spearheading the AI chip boom, along with AMD and Qualcomm. This makes TSMC a good bellwether for AI chip demand. While a slowdown at ASML might suggest some caution, the bigger picture still points to a continued surge in AI demand.
Persons: TSMC, , Javier Correonero, Dan Hutcheson, TechInsights, It's, Correonero, TSMC's, CC Wei, Gokul Hariharan, Kate Leaman, Leaman Organizations: Service, Taiwan Semiconductor Manufacturing Company, TSMC, Samsung, Intel, Morningstar, Nvidia, AMD, Qualcomm, Taiwan, Broadcom, Reuters, CC, JPMorgan
Tech graduates, once near-guaranteed a role, are facing a tough job market. The rise of AI, offshoring, and tech layoffs are making roles more competitive. While the US job market is improving, experts say tech graduates are still struggling — and will continue to for a while. AdvertisementLayoff streakAfter two years of brutal tech layoffs, demand for tech workers has still not returned to pre-pandemic levels. "But there just isn't a lot of bites right now to say that AI is eliminating roles for entry-level workers."
Persons: , Alex Diaz, Diaz, Diaz isn't, I'm, I've, James O'Brien, O'Brien, Alec Wolyniec, he's, Wolyniec, Alex Hernandez, Hernandez, Kantenga, Gen, Gen Z, Chris Abbass, it's Organizations: Tech, Service, of Maryland, , University of Maryland, University of California, ADP, Federal, Emory University, LinkedIn, Twitter Locations: Berkeley, WFH
AdvertisementIf Elon Musk can fully deliver on his plans to make Tesla's Robotaxi the new go-to mode of transport, he could bring an end to the ride-hailing economy as we know it. "Tesla's vehicles, sensors, and software will all need to be approved in any market they hope to enter. "Until Tesla robotaxis are transporting 100,000 paying customers a week around major American cities like Waymo does, Tesla Robotaxi is nothing more than the latest work of fiction to come out of the Warner Bros. "We also believe TSLA could struggle to scale fleet operations without offering access to demand via Uber/Lyft." Uber is already preparing for a future of electric cars and autonomous vehicles without Tesla's involvement.
Persons: BYD, , Elon, aren't, Tesla, Uber, Musk, Jefferies, John Colantuoni, Paul Miller, Forrester, Dan O'Dowd, Waymo, I've, Gene Munster, Brian Baker, Matt Bryson, Dara Khosrowshahi, We're Organizations: Service, Warner Bros, Tesla, Warner Bros ., Asset, Jefferies, Tesla's, BYD, Aurora, AV Locations: Burbank , California
OpenAI is projected to turn a profit in 2029, a new report from The Information says. Microsoft also appears to be on track to get a 20% cut of OpenAI's revenue, per the report. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. The report said the company doesn't expect to become profitable until 2029 when revenue is projected to hit $100 billion. According to The Information, OpenAI is currently projecting that its compute costs for model training could hit as high as $9.5 billion a year in 2026.
Persons: , OpenAI, it's, Kate Leaman, Leaman Organizations: Microsoft, Service, Business Locations: Silicon Valley
DeepMind researchers Demis Hassabis and John Jumper have won a share of the Nobel Prize in chemistry. AdvertisementDemis Hassabis, the cofounder and CEO of DeepMind, is one of three researchers to be awarded the Nobel Prize in chemistry. The pair were recognized for their use of AI to predict protein structures with the DeepMind tool AlphaFold. The other is about fulfilling a 50-year-old dream: predicting protein structures from their amino acid sequences. AdvertisementDeepMind has also released the AlphaFold Protein Structure Database, which includes free-to-access models of microscopic protein structures.
Persons: Demis Hassabis, John Jumper, DeepMind, , Demis, David Baker, Hassabis, Heiner Linke, Shane Legg, Mustafa Suleyman Organizations: Service, Business, Chemistry, Google Locations: AlphaFold, London
OpenAI has fired back at Elon Musk's latest lawsuit. Musk's lawyers have argued that OpenAI executives "deceived" him into cofounding the company. AdvertisementIn response to Musk's lawsuit, OpenAI called it the latest move in Musk's "increasingly blusterous campaign to harass OpenAI for his own competitive advantage." "OpenAI is dedicated to the safe and beneficial development of artificial general intelligence ("AGI")," OpenAI's lawyers said in a court filing on Tuesday. A long-running feudIn March, Musk first sued OpenAI on similar grounds but later dropped the suit in June.
Persons: OpenAI, , Musk, Tesla, Sam Altman, He's, xAI, Ilya Sutskever's, Mira Muta, Ilya Sutskever Organizations: Elon, Service, Musk, Business, Microsoft Locations: Musk's
A judge has ordered Google to open up Android to rival third-party app stores. The ruling is part of Epic Games' blockbuster antitrust case against Google. AdvertisementThe judge also ruled that Google must allow competition app stores to access Google Play apps and that it cannot require app makers to use Google Play Billing. Related storiesThe remedies follow a jury's finding last year that Google had violated antitrust policies in its Play Store for Android systems. AdvertisementAnother antitrust blow for GoogleThe Epic Games ruling is Google's latest setback as it faces other antitrust cases affecting different parts of its sprawling business.
Persons: Organizations: Google, Epic Games, Service, Business, Department of Justice
James O'Brien is a UC Berkeley professor who says tech graduates struggle to secure top jobs. O'Brien says we need to embrace universal basic income as AI shrinks the job market. AdvertisementThis as-told-to essay is based on a transcribed conversation with James O'Brien, a professor at the University of California, Berkeley. There's still demand for people, and some people are getting jobs, but not across the entire industry. AdvertisementThere are also people coming from other schools that don't have quite the strong reputation that Berkeley does, and they're not getting job offers at all.
Persons: James O'Brien, O'Brien, , I've, It's, it's, they're, that's Organizations: UC Berkeley, Service, University of California Locations: Berkeley
Despite return-to-office mandates at Amazon and Dell, the tech world still appears to favor hybrid work. Experts say hybrid work boosts recruitment and retention and could be crucial amid tech talent wars. But while it may seem like workers are losing the battle for remote work, research suggests that hybrid work is still the norm in the tech industry. While some large companies, such as Nvidia, have remained holdouts, most Big Tech companies have had hybrid policies of various degrees. So as long as productivity stays up, I think hybrid work is here to stay in the tech world."
Persons: , Peter Cappelli, Nicholas Bloom, Bloom, Noam Shazeer, Cevat Aksoy, Aksoy, John Rossman, — it's Organizations: Amazon, Dell, Flex, Service, Wharton Business School, Big Tech, Stanford, Google, King's College London, Nvidia, Microsoft Locations: mull
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