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Today’s AI Insights:
🪐 Elon Musk’s xAI Launches ‘Colossus'
💰 AI Startup Raises $320M
🧠 Ilya Sutskever’s startup, Safe Superintelligence, raises $1B
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🗞️ Latest AI and tech news
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AI NEWS
MAGIC
Magic, an AI startup focused on automating software development tasks, has secured $320 million in funding from prominent investors, including ex-Google CEO Eric Schmidt. The company, founded in 2022, is positioning itself among top AI coding startups and has big plans for future AI-driven innovations.
The Details:
Funding and Investors: Magic raised $320 million from Schmidt, Alphabet’s CapitalG, Atlassian, Sequoia, and others, bringing its total funding to $465 million.
Partnership with Google and Nvidia: Magic announced a collaboration with Google Cloud to build two supercomputers powered by Nvidia’s H100 and future Blackwell GPUs. These systems aim to achieve 160 exaflops of computing power for AI model training.
Advanced AI Model: Magic’s standout feature is its “Long-term Memory Network” (LTM) architecture, with LTM-2-mini offering a 100 million-token context window, allowing it to autonomously tackle complex coding tasks.
Big Market Opportunity: Magic is tapping into a potential $27 billion market for AI-powered coding tools, competing with other AI companies like GitHub’s Copilot and Google’s Gemini models.
With strong backing and innovative technology, Magic is set to transform software development by automating coding tasks. Its partnerships with Google and Nvidia will help the company scale its AI tools, making coding faster and more efficient for developers.
XAI
Image Source: xAI
Elon Musk’s AI startup, xAI, has launched ‘Colossus’, a powerful AI training system equipped with 100,000 Nvidia graphics cards. This system marks a major step in xAI’s mission to compete with industry leaders like OpenAI.
The Details:
Colossus is now one of the most powerful AI training systems globally, potentially surpassing the U.S. Energy Department’s Aurora system in performance.
The system uses 100,000 Nvidia H100 graphics cards, which are designed to run large AI models up to 30 times faster than previous generations.
xAI plans to double the system’s capacity to 200,000 GPUs, including 50,000 of Nvidia’s faster H200 chips, boosting AI model training speed even further.
xAI’s current AI model, Grok-2, was trained using 15,000 GPUs. With Colossus, xAI aims to develop more advanced models, with a new version of Grok expected by year’s end.
Some of the chips powering Colossus were initially intended for Tesla, but Musk redirected 12,000 Nvidia H100s to xAI for its AI projects.
xAI’s new Colossus system marks a significant step in Musk’s push to develop cutting-edge AI. With plans to scale its capabilities and build even more powerful AI models, xAI is positioning itself as a strong competitor in the AI landscape, ready to challenge industry leaders like OpenAI.
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AI & TECH NEWS
Ilya Sutskever’s startup, Safe Superintelligence, raises $1B
Safe Superintelligence (SSI), co-founded by former OpenAI scientist Ilya Sutskever, has raised over $1 billion in funding from investors like a16z and Sequoia. SSI plans to use the funds for acquiring computing power and hiring research teams based in Palo Alto and Tel Aviv. Valued at $5 billion, SSI has yet to disclose its specific research focus.
UK regulator approves Microsoft’s Inflection acquihire
The U.K.’s CMA has cleared Microsoft’s hiring of key AI talent from Inflection AI, concluding it doesn’t pose a competition risk. The $650 million deal involved licensing Inflection’s models and bringing on its staff, raising concerns about “quasi-mergers.” Future deals of this nature may still face regulatory scrutiny despite this clearance.
Amazon's Alexa now powered by Claude AI
Amazon plans to launch “Remarkable Alexa” in mid-October, powered by Anthropic’s Claude AI after prior versions fell short of expectations. The new Alexa will feature enhancements like daily AI-generated news summaries and a child-friendly chatbot. However, users may face a subscription fee ranging from $5 to $10 per month.
Google’s new AI system, GameNGen, can generate real-time gameplay for the classic shooter Doom without using a game engine. It runs on a single Tensor Processing Unit (TPU) and delivers 20 frames per second. This breakthrough could change the gaming industry by reducing development time and costs, making it easier for independent developers to create games
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AI MEME OF THE DAY
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