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Meta's AI spending spree sparks tech selloff

+ Apple releases open-source language models.

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πŸ“‰ Meta's AI spending spree sparks tech selloff as Wall Street questions long-term payoff

πŸ€– Apple releases open-source language models, OpenELM, to empower AI research community

🎀 Tupac's estate threatens legal action against Drake for unauthorized use of AI-cloned voice in diss track

πŸ’» Augment, an AI coding platform backed by ex-Google CEO Eric Schmidt, emerges from stealth with $252M funding

πŸ—£οΈ Zuckerberg envisions AI ecosystem free from Apple and Google's control

Meta Platforms' shares plummeted 13% today, triggering a selloff in big technology stocks after the social media giant signaled that its costly bet on AI could take years to pay off.

The drop erased nearly $170 billion from the company's market value and sent shockwaves through the tech industry.

What to know:

  • Meta CEO Mark Zuckerberg warned that costs would grow "meaningfully" over the coming years before the company makes substantial revenue from its AI products.

  • Investors fear that Zuckerberg is plunging Meta into another costly endeavor while its augmented and virtual reality business continues to lose billions each quarter.

  • Meta forecast April-June revenue below estimates and raised its 2024 total expense and capital expenditure forecasts as it invests in data centers crucial for its AI efforts.

  • Despite concerns, some analysts remain positive about the investments, citing AI-driven engagement on content like Instagram Reels and the positive reception of Meta AI and Llama 3.

  • The stock's 12-month forward price-to-earnings ratio stands at 23.12, compared to Microsoft's 31.17 and Alphabet's 22.07, reflecting investor uncertainty about the long-term payoff of Meta's AI investments.

As the industry grapples with these uncertainties, investors will closely monitor the progress and payoff of Meta's AI initiatives.

Apple has unveiled OpenELM (Open-source Efficient Language Models), a series of large language models designed to run on-device rather than through cloud servers.

What to know:

  • OpenELM consists of eight models, four pre-trained using the CoreNet library and four instruction-tuned models.

  • Apple's layer-wise scaling strategy aims to improve accuracy and efficiency, resulting in a 2.36% accuracy improvement compared to OLMo while requiring half the pre-training tokens.

  • The release includes the complete framework for training and evaluating the language model on public datasets, training logs, multiple checkpoints, and pre-training configurations.

  • The open sharing of information helps Apple recruit top talent by providing research paper opportunities that align with its privacy-focused approach.

As Apple is expected to introduce new AI features in iOS 18, the on-device approach will look to set a new standard for AI implementation in the industry.

Trending AI tools to check out

  • πŸ“„Β pdfAssistant AI: An AI-powered tool that simplifies PDF processing tasks through natural language commands, streamlining document workflow.

  • 🎨 RapidLogo: Create professional logos instantly. Generate unlimited options for free and pay only for the one you choose.

  • πŸ“ˆΒ Uptrends.ai: Monitor stock trends and receive real-time alerts on price changes, sentiment, and mentions. Start tracking for free.

  • 🌎 Layla: An AI-powered travel assistant that offers personalized recommendations, itinerary planning, and booking services.

  • 🌐 CSM: An AI tool that generates controllable 3D animated worlds from images, text, and sketches. Free trial available.

Some other quick developments you should know…

Tupac Shakur's estate has sent a cease-and-desist letter to Drake, demanding the removal of his track "Taylor Made Freestyle," which features an AI-generated clone of the late rapper's voice. The estate claims the unauthorized use violates Tupac's publicity rights and disrespects his legacy.

Augment, a startup aiming to revolutionize AI-powered coding assistance, has launched out of stealth with $252 million in funding at a near-unicorn valuation. Led by ex-Microsoft and Google engineers, Augment faces stiff competition in the rapidly growing market for generative AI coding technologies.

Meta CEO Mark Zuckerberg has expressed his desire to prevent AI from being controlled by a few gatekeepers, as is the case with mobile apps and Apple and Google's app stores. He believes Meta's open-source model, Llama, will help democratize AI development and prevent large companies from dictating what can be built with the technology.

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