good morning, Unless you are a SpaceX shareholder.
Yesterday, on its first day of listing on the Nasdaq 100, the company’s stock closed below $150 for the first time since its June 12 IPO, putting Elon Musk’s title as perhaps the world’s first billionaire in jeopardy.
Who cares? Even if SPCX isn’t in your portfolio, there are still benefits.
First: As with most big AI bets, investors remain nervous about the company’s future trajectory, even if Tesla, which has long been speculated as a potential merger target, is not included in its plans. Second, if a company’s stock price continues to decline, the potential wealth of the employees who own the stock also decreases, and so does the impact on the communities in which the employees live.
And third: If you’re in the business of being called the top of the AI boom, you could do worse than SpaceX stock, which is down more than 30% from its June 16 high amid market pressure on all of the Magnificent 7 technology companies. (Suddenly, Anthropic and OpenAI IPOs don’t seem so imminent!)
More detailed news will follow. Have a productive day! —Andrew Nazca
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China considers restricting foreign access to advanced AI models
Evan Vucci – Pool/Getty Images
China’s top technology companies, including Alibaba, ByteDance and X.ai, have reportedly met with Chinese officials about the government’s proposal to restrict foreign access to China’s most advanced AI models, including those that have not yet been released.
The meeting was led by China’s Ministry of Commerce. According to Reutersand attendees discussed limiting both closed and open source models. The penalties for leaking or stealing such technology could be a national security crime. Those convened also discussed restrictions on who can fund AI startups in the country, the report said.
“The Chinese government’s decision to restrict access to these products is likely to have ramifications throughout the AI market, as it will likely increase costs for many companies.” Reuters Note.
This is just the latest in a long line of tit-for-tat trade restrictions between China and the U.S. As competitive sentiments flare, both countries have introduced myriad export restrictions on AI-related products that would otherwise go to geopolitical rivals. Both governments also maintain blacklists of companies based in or owned by the other country.
Until this year, restrictions were primarily aimed at semiconductors and other physical goods. Now, those constraints are moving into the realm of software. What remains to be seen: whether any of it will actually matter as the global AI arms race continues. —Anne
Meta launches Muse image and video generation AI model
Speaking of AI models, Meta’s Superintelligence Labs, led by Alexandr Wang, has launched its own model.
The first is called Muse Image, which is currently accessible and is an image generation model that can create realistic images for Instagram and WhatsApp users.
“We follow instructions closely, edit with precision, compose from multiple references, and leverage Instagram for social context,” the company says. I wrote it in a blog post. “It also provides agent tooling capabilities and integrates with Muse Spark, a large-scale language model built by Meta’s SL.”
The second, Muse Video, is an AI video generator that is still in “preview” and will be available in the Meta AI app in the coming months.
“Delivers competitive performance in rapid compliance, visual fidelity, and temporal consistency,” the company writes. “We are investing in areas where there are performance gaps today, such as audio and video synchronization and physically accurate high-speed motion.”
Both models emerged amid rapidly evolving competitors such as Adobe, Google, and OpenAI. But the real potential of the Muse model lies in the distribution of Meta, which counts 3.58 billion daily active users across its properties. —Anne
Microsoft has reportedly scrapped Anthropic and OpenAI in favor of its own model to cut costs.
It was inevitable. As the technology industry’s biggest companies build their own AI chips and AI models to stand out from the crowd and cut costs, they’re ditching expensive third-party products.
That reality appears to be happening at Microsoft right now.
We just got news of yet another layoff, and people in Redmond are reportedly looking at Anthropic’s integration with OpenAI in Excel and Outlook and wondering why not use something free and homegrown.
In the past, they may not have been equal in terms of ability. However, things have changed; According to Bloomberg.
“Tens of thousands of AI prompts in widely used spreadsheet and email applications are now completed weekly using MAI models built in-house by Microsoft,” the report said, adding that “while still a small percentage of overall AI usage, this move signals Microsoft is making progress in its efforts to build lower-cost and more competitive artificial intelligence models.”
This is also a sound strategic move in the long run. For example, as OpenAI’s largest investor, Microsoft has enjoyed preferential (i.e. discounted) access to its models. But the terms of the relationship have changed, and will continue to change, as the young company pushes toward an IPO. If Microsoft doesn’t come up with a backup plan, it will be hit with a hefty bill.
Or, as Beyoncé, the great oracle of AI, once said, “I don’t like gambling, but if there’s one thing I’d bet on, it’s myself.” —Anne
More technology
—Google Pixel event is scheduled for August 12th. Expected models: Pixel 11 smartphone and Pixel Watch 5.
—Four US states demand $1.4 trillion for meth As for claims that Facebook and Instagram were designed to addict young people.
—Kraken reportedly seeking full banking license Lithuania and even Europe.
—Netflix signs short-form show deal We partner with BuzzFeed, Condé Nast, Hearst, Penske, People, and Wonder’s Tastemade.
—Chinese smartphone sales decline Because brands are raising prices to offset the cost of memory.
—Debut of jointly developed Cursor-SpaceX AI model is reportedly imminent.
—Autonomous “killer robot” UN Secretary-General António Guterres said it “should be prohibited by international law.”
