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Generative AI Investment Skyrockets Amid Declining AI Venture Funding

+ 9 break tech news stories.


Intel, alongside other major tech companies, has initiated the Open Platform for Enterprise AI (OPEA), a project fostered by the Linux Foundation's LF AI and Data Organization. OPEA aims to develop robust, scalable AI systems using open-source innovation. The participants will include industry leaders such as Cloudera, Red Hat, and more. The project's launch comes at a time when generative AI projects, especially those using Retrieval-Augmented Generation (RAG), are gaining momentum.

AltStore PAL, a third-party iOS app store, is now available in the European Union, adhering to the region’s Digital Markets Act. To cover Apple’s Core Technology Fee, it requires a €1.50 annual subscription. The marketplace, developed by Riley Testut and Shane Gill, includes apps such as Delta, an emulator, and Clip, a clipboard manager. AltStore PAL will also integrate with Patreon for monetization, offering a platform for developers to distribute beta apps.

Microsoft's $13 billion investment in OpenAI Inc has eased concerns of a forced separation as it bypasses investigation by EU merger watchdogs. The European Commission deemed the deal not qualifying for a formal probe as it isn't a takeover, nor does Microsoft control OpenAI's trajectory. The partnership focuses on fulfilling requirements for high computing power for the growth of generative AI, boosting demand for Microsoft's cloud services.

Streaming giant Netflix is set to report earnings with an expected 13.7% YoY rise in revenue to $9.28 billion. Last quarter saw revenues of $8.83 billion, surpassing analyst projections by 1.4%. The Q1 report anticipates adjusted earnings of $4.54 per share. Wall St's revenue estimates underwent 13 upward revisions in the last 30 days. Netflix's share price enters the earnings at $621.4, slightly below the analyst target of $625.6.

Despite an overall dip in AI venture funding, investment in Generative AI surged eightfold to $25.2 billion. Leading the development side, private companies produced 51 notable machine learning models in 2023, far beyond academia's 15 models, with the US outperforming China. Nevertheless, issues like lack of standardized AI testing and skyrocketing training costs persist, amidst growing consumer and government unease.

Google, owned by Alphabet, is cutting costs through employee layoffs and shifting some roles to hubs in India, Chicago, Atlanta, and Dublin. The layoffs are not company-wide, and impacted employees may apply for internal roles. Google's finance and real estate teams have felt the impact. The changes come as Google intensifies its AI investments and grapples with economic uncertainties.

Stability AI's Stable Diffusion 3, matching performance levels of top image models like DALL-E 3, is now accessible via API through a partnership with Fireworks AI. Stability AI plans a timely release of model weights for self-hosting, and is trialling its Stable Assistant pre-release, including Stable Diffusion 3, with select users. Measures are in place to prevent misuse of the model.

Amazon's Prime subscription service reached a new peak of 180 million American users in March, marking an 8% growth since the previous year. Despite fierce competition from Walmart and companies like TikTok Shop, 75% of the US shoppers are Prime members, showing continued trust in Amazon.

As Apple continues to diversify its manufacturing beyond China, CEO Tim Cook announces they are considering Indonesia as a potential manufacturing hub. Over the past three years, the tech giant had broadened its base, making Vietnam one of their biggest manufacturing hubs and doubling their iPhone production in India to 14%.

Microsoft's AI Copilot is transforming coding, amassing 1.3 million users and helping engineers save hundreds of hours monthly by automating tasks. Despite limitations, its efficiency boosts have proved invaluable.

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