Harvard Dropouts Raise $120M to Challenge Nvidia

Good Morning, Team!

On June 26, 1974, the first product with a barcode was scanned, revolutionizing inventory tracking and sales. Today, we explore how AI continues to transform industries with breakthroughs and innovations.

TRACK HIGHLIGHTS
Article Takeaways

• Harvard Dropouts Raise $120M to Challenge Nvidia
• Record Labels Sue AI Companies
• Judge Rejects $30B Mastercard-Visa Settlement
• DHS Onboards Elite AI Corps to Boost National Security
• AI-Powered razr: Motorola & Google Cloud Transform Smartphones

MARKET PITSTOP
A Quick Look at the Market

Stock Market: A rebound in Nvidia shares led the S&P 500 and Nasdaq Composite higher on Tuesday, a day after a sell-off in the chipmaking giant. Read More

Crypto: Bitcoin (BTC) traded bearishly at the $60K mark, a majority of the top altcoins noted a considerable upside momentum. Read More

LAP 1 Featured Story
Harvard Dropouts Raise $120M to Challenge Nvidia with Revolutionary AI Chip

• A team of college dropouts has secured $120 million in funding from investors.
• Led by Primary Venture Partners to build a new AI chip to take on Nvidia.
• Etched's Sohu chip aims to specialize in AI model training and deployment.

Etched, a two-year-old startup founded by Harvard dropouts, is making waves in the AI chip industry by raising $120 million to develop their Sohu chip. This chip is designed to specialize in training and deploying AI models using transformers, which are key to advancements like ChatGPT. The company believes that as AI technology evolves, power-hungry computing needs will be better met by custom-designed chips known as ASICs. While Nvidia currently dominates the AI chip market, Etched is confident in their ability to compete by offering a more efficient and faster alternative. Co-founder and CEO Gavin Uberti emphasizes the importance of their high-risk venture, seeing it as a pivotal opportunity to shape the future of technology.

Etched is already working to secure customers eager to explore new AI chips and plans to showcase their product later this year. The founders believe that by hard coding the AI architecture into their chip, they can significantly reduce latency and unlock new use cases for AI applications. Read More

LAP 2
Record Labels Sue AI Companies for Copyright Infringement

• Major record labels are suing AI music companies Suno and Udio-maker Uncharted Labs.
• The lawsuits allege AI models used copyrighted sound recordings without consent.
• The music industry aims to protect artists' rights and ethical AI use.

The world’s largest record labels, including Universal, Sony, and Warner, have filed lawsuits against AI music companies Suno and Udio-maker Uncharted Labs for allegedly using copyrighted sound recordings without consent. These lawsuits, coordinated by the RIAA, aim to address legal and ethical concerns as generative AI tools become more prevalent in the music industry.

The labels argue that these AI models were trained on decades of copyrighted music, infringing on artists' rights. This legal action underscores the music industry’s commitment to ensuring AI development respects human creativity and compensation. The lawsuits seek to halt the unlicensed use of copyrighted music and secure damages for any past infringements. Read More

BRAIN TEASER
Paul’s height is six feet, he’s an assistant at a butcher’s shop, and wears size 9 shoes. What does he weigh?

WALLSTREET PITSTOP
Judge Rejects $30B Mastercard-Visa Settlement: Swipe Fee Battle Continues

• Federal judge rejects $30 billion Mastercard-Visa settlement with retailers.
• Settlement aimed to lower swipe fees for merchants using credit cards.
• Retailers claimed card companies inflated fees, blocking cheaper payment options.

A federal judge has rejected a proposed $30 billion settlement between Mastercard, Visa, and retailers, potentially requiring further concessions from the credit card giants. The settlement, intended to lower the swipe fees merchants pay on card transactions, was part of a longstanding antitrust lawsuit. Retailers accused Mastercard and Visa of colluding to inflate these fees and prevent cheaper payment alternatives. Judge Margo Brodie’s ruling indicates that the current terms are unlikely to receive final approval without changes. The proposed settlement would have provided temporary relief by reducing swipe fees and allowing merchants to impose surcharges based on the type of card used. Read More

Lap 3
DHS Onboards Elite AI Corps to Boost National Security

• DHS hires first 10 AI experts for new AI Corps initiative.
• AI Corps to enhance national security through responsible AI use.
• AI experts from private sector and academia join DHS team.

The Department of Homeland Security (DHS) has announced the hiring of the first 10 experts for its new "AI Corps," part of a broader initiative to recruit 50 AI specialists. These new hires will leverage AI to address critical issues such as cybersecurity, countering fentanyl trafficking, and combatting online child exploitation. The AI Corps, which includes professionals from diverse backgrounds in AI and machine learning, aims to responsibly integrate AI technology across DHS operations to enhance national security. This move is part of DHS's efforts to stay at the forefront of AI development and application within the federal government. Read More

FUN FACT STOP
The world’s first animated feature film was made in Argentina.

LAP 4
AI-Powered razr: Motorola & Google Cloud Transform Smartphones

• Motorola integrates Google Cloud's generative AI in new razr smartphones
• Moto ai enhances user experience with context-aware, personalized features
• Magic Canvas and Style Sync among key features introduced

Motorola has partnered with Google Cloud to integrate generative AI into its new razr smartphones, including the flagship motorola razr+/motorola razr 50 ultra. Using Google Cloud's Vertex AI, Gemini, and Imagen models, Moto ai enhances user experiences by providing context-aware, personalized features such as Magic Canvas for creating images and Style Sync for matching phone themes with outfits. This collaboration aims to make smartphones more intuitive and capable, offering users innovative ways to interact with their devices. Read More

FINAL LAP - FINANCE & THE STOCK MARKET
Janet Yellen Disputes Recession Fears, GenAI's Role in Finance, and Market Updates

• Janet Yellen to Yahoo Finance: 'I don't see the basis' for a recession

• Harnessing GenAI in corporate finance: Lessons from Microsoft

• Stocks mixed as consumer confidence dips

• Meet the fastest-growing financial firms

• EU to downgrade Georgia ties and mull finance freeze

BRAIN TEASER ANSWER

Meat.

THE RACE CONCLUDES
Thank You for Joining us on the AI Race! 🏁 

We want to THANK YOU for joining us on this exciting journey into the world of AI! Our mission is simple - to keep those who feel left behind in the AI curve up to date.

Your subscription marks the beginning of a collaborative exploration into the boundless possibilities of Artificial Intelligence.

Warm regards,

AI Pitstop Team