Apple & Nvidia Join OpenAI, Magic Secures $320M, Alibaba’s Qwen2-Math Breaks New Ground, and New U.S. Partnerships

Happy Friday, AI & Data Enthusiasts! A lot is happening in AI investments this week! OpenAI is reportedly closing in on a new funding round at a $100B+ valuation, the two tech giants are set to become OpenAI’s next biggest investors, and the top-tier AI startup, Magic has just secured $320M. Read on to learn more about these major financial moves and developments in the AI industry.

In today’s edition:

• Nvidia and Apple Set to Become OpenAI’s Next Big Investors.

• Magic, A Top Tier AI Startup Secures $320M from Eric Schmidt, Atlassian, and Others.

• Alibaba Unveils Qwen2-Math: A Language Model Outperforming GPT-4 Turbo.

• OpenAI and Anthropic Partner with U.S. Government for AI Safety.

- Naseema Perveen

WHAT CAUGHT OUR ATTENTION MOST

Nvidia and Apple Set to Become OpenAI’s Next Big Investors

Nvidia and Apple are reportedly in discussions to join OpenAI’s upcoming fundraising round, potentially pushing the ChatGPT creator's valuation to $100 billion.

According to sources cited by The New York Times, Thrive Capital, an early investor in OpenAI, is expected to lead this deal if it materializes. Bloomberg was the first to reveal Nvidia’s involvement, while The Wall Street Journal reported Apple’s interest. Microsoft, which already holds a 49% stake in OpenAI, might also participate.

Despite generating an annual revenue exceeding $3.4 billion earlier this year, OpenAI is projected to face a $5 billion loss by year-end due to its aggressive AI training and staffing expansions.

OpenAI’s connections with Nvidia and Apple run deep. The company relies heavily on Nvidia GPUs to train its generative AI models. Additionally, Apple has plans to integrate ChatGPT into iOS as part of its upcoming AI suite, Apple Intelligence, announced earlier this year.

• Major Investment Talks: Nvidia and Apple are reportedly in discussions to join OpenAI’s upcoming fundraising round, potentially valuing the company at $100 billion, with Thrive Capital likely to lead the deal.

• Strategic Partnerships: OpenAI has strong ties with both Nvidia and Apple—using Nvidia GPUs for AI training and planning to integrate ChatGPT into Apple’s iOS as part of Apple Intelligence.

• Financial and Market Impact: Despite generating significant revenue, OpenAI is on track to face a substantial loss by year-end, highlighting the importance of this potential investment for its continued growth and industry influence.

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KEEP YOUR EYE ON IT

Magic, A Top Tier AI Startup Secures $320M from Eric Schmidt, Atlassian, and Others

Magic, an AI-driven coding startup, has successfully raised $320 million in its latest funding round, with contributions from notable investors such as former Google CEO Eric Schmidt, CapitalG (Alphabet’s growth fund), Atlassian, and other key players in the tech industry. This significant investment brings Magic's total funding to $465 million, positioning the company among the top-tier AI coding startups like Codeium and Anysphere.

Magic, founded in 2022 by Eric Steinberger and Sebastian De Ro, aims to revolutionize software development with AI tools that act as automated pair programmers, significantly boosting productivity for software engineers. Despite having a small team and no revenue yet, Magic is targeting a rapidly growing market, with plans to expand its workforce and continue pushing the boundaries of AI-driven coding solutions.

• Funding Milestone: Magic, an AI-driven coding startup, raised $320 million in a new funding round, with contributions from former Google CEO Eric Schmidt, CapitalG, Atlassian, and others.

• Total Funding: This round brings Magic’s total funding to $465 million, positioning it among top AI coding startups like Codeium and Anysphere.

• Innovative AI Tools: Magic’s AI models, which feature the industry’s largest context window, help automate complex coding tasks, acting as an advanced pair programmer for software engineers.

• Strategic Partnerships: Magic announced a partnership with Google Cloud to develop two AI supercomputers using Nvidia’s latest GPUs, aiming to enhance the efficiency of their AI models.

Alibaba Unveils Qwen2-Math: A Language Model Outperforming GPT-4 Turbo

Alibaba has launched the Qwen2-Math series, featuring three versions of its advanced language model: 1.5 billion, 7 billion, and 72 billion parameters. Built on the Qwen2 LLM framework, Qwen2-Math is designed to solve complex mathematical problems and boasts the world's leading mathematical reasoning capabilities.

• Extended Video Analysis: The advanced AI for long-video analysis can analyze and understand videos longer than 20 minutes, providing summaries and real-time insights.

• Top Performance: Outperforms leading models like Meta’s Llama 3.1 and OpenAI’s GPT-4o in third-party benchmarks.

• Multilingual Support: Handles multiple languages including English, Chinese, Japanese, Korean, Arabic, and Vietnamese.

• Advanced Features: Offers capabilities such as summarizing video content, live chat support, and analyzing complex imagery and video in near real-time.

Qwen2-VL is set to raise the bar for AI in visual and video understanding, making it a valuable tool for tech support and more.

OpenAI and Anthropic Partner with U.S. Government for AI Safety

OpenAI and Anthropic have entered into groundbreaking agreements with the U.S. Artificial Intelligence Safety Institute to advance the research, testing, and evaluation of their AI models. These partnerships are part of a broader effort to address regulatory concerns and ensure the responsible use of AI technologies. With California legislators poised to vote on new AI regulations, these deals mark a significant step in aligning AI development with safety and ethical standards.

• New Agreements: OpenAI and Anthropic will collaborate with the U.S. AI Safety Institute on extensive research and evaluation of their AI models.

• Regulatory Context: The deals come as California prepares to vote on comprehensive AI regulations, reflecting growing scrutiny in the sector.

• Safety and Ethics: The collaborations aim to rigorously test AI models and address safety concerns before and after their public release.

🎤 VOICE YOUR OPINION

ICYMI

• Google is developing an AI model that can hear signs of sickness.

• Why AI Struggles with Spelling “Strawberry”.

• ChatGPT's weekly users have grown to 200 million. 

• Gmail users on Android can now chat with Gemini about their emails.

• Amazon plans to launch a delayed AI-powered Alexa subscription in October.

MONEY MATTERS

• OpenAI is reportedly in talks to close a new funding round at $100B+ valuation.

• Global spending on AI-centric systems is forecast to reach $154 billion in 2023.

• E-commerce retailers using AI experienced an average revenue increase of 10-25%.

• By 2025, self-driving vehicles are anticipated to be on UK roads, supported by £100 million in government funding already committed to this initiative.

• The global AI in social media market size is projected to reach $11.99 billion by 2031.

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