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Time Is Money

Aug 18, 2024 • 5 min read

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California‘s AI Legislation
SoftBank Acquires Graphcore

Week Recap:

The FBI recently executed a coordinated international operation to dismantle the Radar/Dispossessor ransomware group. This group, notorious for its sophisticated cyber tactics and ruthless methods, was neutralized on August 12, 2024, with the FBI seizing the gang's servers and domains across the United States, United Kingdom, and Germany, effectively crippling their ability to conduct further attacks.
The United States has decided to lift its ban on offensive weapons sales to Saudi Arabia, allowing for the transfer of $750 million worth of air-to-ground munitions in the coming months. This decision reverses the restrictions put in place by the Biden administration in 2021, which were initially imposed due to concerns over Saudi Arabia's military involvement in Yemen, where U.S.-supplied weapons were reportedly used in airstrikes that caused significant civilian casualties.
Scientists from Sweden and the Swiss startup FinalSpark have developed the world’s first living computer using human brain tissue. This machine is built from 16 lab-grown brain organoids, small clusters of neurons that function like traditional computer circuits. These organoids, derived from human stem cells, communicate through neural connections, enabling them to perform computations.
In March, Amazon Web Services (AWS) invested $650 million to acquire a new data center strategically located next to the Susquehanna Steam Electric Station in Berwick, Pennsylvania. This nuclear power plant, generating 2.5 gigawatts of energy, had been directly supplying electricity to the data center since its opening in 2023. Amazon's acquisition aimed to ensure a steady, reliable supply of nuclear energy to power its operations, a key factor in supporting the growing demands of its computing infrastructure.
xAI has just released Grok-2, a new AI model that marks an improvement from the earlier version, Grok-1.5. Grok-2 is designed to be better at things like having conversations, writing code, and understanding complex problems. Along with Grok-2, xAI is also introducing Grok-2 mini, a smaller version that still has a lot of the same abilities as the full-sized model. Both models are currently in a testing phase on X, and they will be available to businesses through an enterprise API later this month.

California’s AI Legislation:

California's SB 1047, a bill aimed at preventing potential disasters caused by advanced AI systems, has just passed the state's Appropriations Committee with key amendments. This brings the bill closer to a final vote in the state senate. SB 1047 seeks to enforce strict safety measures on large AI models, particularly those that could be misused for harmful purposes, such as creating weapons or launching major cyberattacks. The bill would require developers of these AI models to implement comprehensive safety protocols, including an emergency stop feature and annual third-party audits. A new agency, the Frontier Model Division (FMD), would oversee the enforcement of these rules, with severe penalties for companies that fail to comply.
This latest development has intensified concerns in Silicon Valley, where many fear that SB 1047 could hinder innovation. Critics argue that the bill's thresholds, such as the requirement for AI models that cost over $100 million and use large amounts of computing power, could end up applying to more companies as AI technology advances. They worry that these regulations might slow down the growth of AI startups and the open-source AI community, where models are often shared and modified freely. The concern is that the bill could restrict progress in AI research and development by imposing burdensome requirements on companies.
Despite the pushback, supporters of SB 1047, including its author, California State Senator Scott Wiener, argue that the bill is a necessary step to prevent potential AI-related catastrophes. They emphasize that the tech industry has a history of addressing issues only after they become serious problems, and SB 1047 aims to proactively protect the public. The bill has also gained support from leading AI researchers who are worried about the dangers of unchecked AI development. As the bill moves forward, the debate continues over whether it effectively balances the need for innovation with the importance of safety in the fast-evolving field of artificial intelligence.

SoftBank Acquires Graphcore

SoftBank Group has acquired Graphcore, a UK-based company that designs AI processors, for an undisclosed amount. Graphcore had been seeking a buyer due to difficulties in competing with industry leaders like Nvidia, despite having developed a unique AI processor architecture. This acquisition may be part of SoftBank’s broader strategy to expand its involvement in the AI sector, although the specific reasons for the purchase remain unclear.
Following the acquisition, Graphcore will operate as a wholly owned subsidiary of SoftBank but will continue to use its brand and maintain its existing technology. This suggests that SoftBank sees value in Graphcore’s innovations and plans to continue developing them. Nigel Toon, the CEO and founder of Graphcore, indicated that the company might collaborate with Arm Holdings, another chip company owned by SoftBank, and other companies within SoftBank’s portfolio, potentially integrating Graphcore’s technology with other AI initiatives

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