Microsoft's New Mini AI Model Packs a Punch at a Low Cost

Good Morning Team,

On this day, April 24, back in 1990, the Hubble Space Telescope was launched, marking a monumental step in the exploration of our universe. As the Hubble has expanded our understanding of the cosmos, today’s AI technologies are expanding our capabilities and transforming our understanding of both the digital and physical worlds.

TRACK HIGHLIGHTS
Article Takeaways

• Microsoft’s New AI Model at a Low Cost
• Meta’s AI is Annoying to Users
• NYSE’s Move to 24/7 Trading?
• Apple's AI Leap with Datakalab Acquisition
• Adobe AI Tools Enhance Photoshop

MARKET PITSTOP
A Quick Look at the Market

Stock Market: Stock indexes climbed, building on Monday’s gains. The Nasdaq led the way with a 1.6% jump. The S&P 500 rose 1.2%, while the Dow industrials added 0.7%.

Crypto: SEC delays making a decision on spot Ethereum ETF proposals from Franklin Templeton, Grayscale.

LAP 1 - Featured Story
Microsoft's New Mini AI Models Promise Big Performance at Small Costs

• Microsoft introduces Phi-3 AI models, comparable to GPT-3.5 but more affordable.
• Smaller AI models fit on smartphones, reducing need for costly processors.
• Reduced processing demands lower user costs, broadening AI application potential.
• While less powerful, smaller models offer a feasible cost-performance balance.

The evolution of AI technology is taking a practical turn with Microsoft's launch of its Phi-3 AI models, which, despite being smaller and less powerful than predecessors like GPT-3.5, promise nearly comparable performance at significantly reduced costs. These new models, designed to operate on standard computing chips and even fit within smartphones, represent a shift away from the "bigger is better" mantra, focusing instead on accessibility and affordability. This strategic move could democratize AI usage, making it feasible for more businesses to integrate AI into everyday applications without the hefty price tag associated with larger models.

As companies like Microsoft pave the way with these scaled-down, cost-effective solutions, the tech industry might see a broader adoption of AI across various sectors, balancing cost with performance to meet more diverse user needs.

LAP 2
Users Push Back as Meta's AI Assistant Takes Over Search Functions

• Meta AI now integrated into search across Facebook, Instagram, WhatsApp.
• Users frustrated by sudden, confusing changes to search functions.
• Complaints from users about poorer search experience post-update.
• Meta's rollout of AI, including new model Llama 3, faces mixed reactions.

Meta has recently broadened the reach of its AI-powered assistant across its major platforms, causing a stir among users who find the integration into the search bars of Facebook, Instagram, and WhatsApp sudden and disruptive. The change, which replaces typical search functionalities with the AI assistant, has led to widespread user dissatisfaction, voiced loudly across social media. Individuals have expressed their frustrations over what they see as an unnecessary complication of a previously straightforward function. Despite Meta's claim that their new Llama 3 model is competitive with leading AI technologies and their intent to drive innovation by open-sourcing it, the immediate reaction to the AI's omnipresence in everyday features has been notably critical.

BRAIN TEASER
You see a boat filled with people, yet there isn’t a single person on board. How is that possible?

WALLSTREET PITSTOP
Trading Non-Stop? NYSE Considers 24/7 Market in Response to Demand

• NYSE surveys market players on potential for 24/7 stock trading.
• Analog trading hours contrast with other sectors' 24-hour operations.
• Cryptocurrency and retail investment surge prompt reevaluation.
• Benefits and risks weighed for round-the-clock trading.

The New York Stock Exchange is contemplating a significant shift by exploring the feasibility of 24/7 stock trading, driven by evolving market dynamics and technological advancements that have made continuous commerce a norm in many sectors. Currently, the NYSE operates within traditional business hours, with a nostalgic charm of opening and closing with a bell ring, supplemented by after-hours trading via electronic communication networks. The consideration for around-the-clock trading is spurred by factors like the relentless pace of cryptocurrency markets and increased retail trading during the pandemic. While such a change could mitigate credit risks and market volatilities due to off-hours news, it also raises concerns about the loss of consolidated trading periods that allow for market stability and decision-making pauses.

LAP 3
Apple's AI Leap: Datakalab Acquisition

• Apple expands AI capabilities through the acquisition of French startup Datakalab
• Datakalab's tech aligns with Apple's privacy focus.
• Acquisition is expected to revolutionize Apple's products, with enhanced AI features

Apple's acquisition of French startup Datakalab signals a strategic move to bolster its on-device AI capabilities, enhancing user privacy and data security. Founded in 2016, Datakalab specializes in low-power deep learning algorithms, aligning with Apple's commitment to efficient processing and localized data handling. The acquisition is expected to elevate AI features in upcoming Apple products, potentially revolutionizing iOS 18 with on-device large language models. As Apple navigates the shift towards on-device AI, industry experts anticipate groundbreaking developments to be unveiled at the Worldwide Developers Conference (WWDC) in June.

FUN FACT STOP
Did you know that a group of flamingos is called a "flamboyance"? This colorful term matches their vivid pink or red feathers, which they get from the carotenoid pigments in their diet of algae and crustaceans.

LAP 4
Adobe Revolutionizes Photoshop with AI-Powered Tools

• Adobe enhances Photoshop with new AI-driven tools, leveraging its Firefly Image 3 model.
• Key features include Reference Image for image-guided AI output and Generate Background for product photography.
• The update also introduces standard tools like Adjustment Brush and Adjustment Presets for faster creative workflows.

Adobe introduces new generative AI tools in Photoshop beta, leveraging its Firefly Image 3 model to offer enhanced creative control. Notable features include the Reference Image tool, allowing users to upload images as guides for AI output, reducing reliance on text prompts. Adobe emphasizes the commercial safety of these tools, while also launching additional features like Generate Background and Enhance Detail to streamline design workflows. Alongside generative AI enhancements, Adobe introduces standard tools like Adjustment Brush and Adjustment Presets to accelerate creative processes within Photoshop.

FINAL LAP - FINANCE & THE STOCK MARKET
Financial Frontiers: Trends and Concerns in Today's Market

• Institutions slowly embrace crypto innovations, with BlackRock launching a blockchain-based tokenized fund backed by U.S. Treasuries, joining other giants in this trend.

• Billionaire investor Leon Cooperman says we’re heading into a financial crisis in this country.

• Tesla reported disappointing first-quarter earnings and revenue on Tuesday, marking its lowest quarterly EPS since 2021.

• Jamie Dimon, CEO of JPMorgan Chase (JPM), expresses concern that the US economy may face similar challenges to those experienced in the 1970s.

BRAIN TEASER ANSWER

Every “single” person on board is married.

THE RACE CONCLUDES
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AI Pitstop Team