Google’s Code Shift, OpenAI's Chip Ambitions, xAI’s Funding Push, and Delayed AI Agents

Happy Wednesday, AI & Data Enthusiasts! 

In today’s edition: 

• AI Takes the Wheel: 25% of Google’s Code Now Generated by AI

• OpenAI Plans to Build its First AI Chip in 2026

• xAI Seeks to Raise Billions in New Funding Round at $40 Billion Valuation

• Google’s Next-Gen AI Agents Won't Arrive Until 2025

- Naseema Perveen

WHAT CAUGHT OUR ATTENTION MOST

AI Takes the Wheel: 25% of Google’s Code Now Generated by AI

CEO Sundar Pichai revealed that AI now generates over a quarter of the company’s new code. This announcement, made during Google’s Q3 2024 earnings call, highlights the tech giant's strategic focus on AI to drive revenue and efficiency.

• AI Integration in Coding: Google now relies on AI to create over 25% of its code, underscoring a significant shift in software development.

• Human Oversight Remains: Engineers still review AI-generated code, ensuring accuracy and alignment with the company’s standards.

• Growth Strategy: Pichai emphasized AI's role as a core driver in Google’s long-term strategy for increased revenue and innovation.

As Google’s use of AI in coding continues to grow, the impact on traditional coding roles remains uncertain. Is Google signaling a shift in the role of human coders? For now, AI is enhancing productivity and shaping the future of development at Google, pointing to a new era of collaboration between coders and AI.

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OpenAI Plans to Build its First AI Chip in 2026

OpenAI is shifting its hardware strategy with plans to design its first in-house AI chip, expected as soon as 2026. Partnering with TSMC and Broadcom, OpenAI aims to break from its reliance on Nvidia by diversifying its hardware sources for AI model training.

• Partnerships and Design Focus: OpenAI is collaborating with Broadcom and TSMC to create an AI chip designed for running complex models, set to debut in 2026.

• Shift Away from Nvidia: Due to chip shortages and high costs, OpenAI will begin using AMD chips, through Microsoft’s Azure platform, alongside Nvidia for model training.

• Rethinking Chip Manufacturing: Rather than building its own factories, OpenAI has opted to focus solely on chip design, allowing for greater flexibility and control.

As OpenAI expands its chip strategy, this pivot highlights a trend among AI leaders toward in-house chip design, potentially enhancing efficiency and reducing costs in the rapidly evolving AI landscape.

xAI Seeks to Raise Billions in New Funding Round at $40 Billion Valuation

Elon Musk’s AI venture, xAI, is reportedly aiming to secure billions in new funding, potentially pushing its valuation to around $40 billion. This latest round would significantly increase xAI’s valuation, which reached $24 billion after a Series B raise in May.

• Ambitious Funding Goals: xAI aims to raise several billion dollars, nearly doubling its valuation and strengthening its financial position.

• Growing Infrastructure: xAI is training its Grok models on an impressive cluster of 100,000 Nvidia GPUs, powering features for Musk’s platform, X.

• Data Advantage: Musk claims that exclusive access to X’s data will give xAI a competitive edge, with recent privacy policy changes allowing third-party model training on X posts.

With new funding, xAI could accelerate its AI advancements and refine Grok’s capabilities. If successful, this funding round may position xAI as a formidable player in the AI space, capitalizing on Musk’s ambitious vision and unique data resources.

Google’s Next-Gen AI Agents Won't Arrive Until 2025: What This Means for Users

Google’s ambitious Project Astra is on the horizon, but users will have to wait until at least 2025 to experience these next-gen AI agents. During Google’s Q3 earnings call, CEO Sundar Pichai shared insights into Project Astra’s capabilities, hinting at a future where AI can understand and interact with the real world in real time.

• Project Astra’s Capabilities: Google’s upcoming AI agents, under Project Astra, are designed to recognize and answer questions about the world around them, bridging the gap between digital and physical interactions.

• Delayed Timeline: Contrary to earlier reports suggesting a 2024 release, Pichai clarified that Project Astra’s consumer-ready products likely won’t be available until 2025.

• Future AI Experiences: Google aims to integrate Astra-powered agents into daily tasks, such as booking flights or answering location-based questions through smartphone cameras.

While the wait for Google’s next-gen AI agents continues, the promise of Project Astra offers a glimpse into a future where AI assists with everyday tasks in real time. This delay may just build more anticipation for the AI breakthroughs Google has planned.

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ICYMI

• Meta builds AI search engine to cut Google, Bing reliance, the Information reports.

• Apple Intelligence: iOS 18.1 brings AI-powered features to your devices.

• Nvidia's bold move in India's AI market.

• US finalizing rules to ban certain investments in AI tech in China.

• Salesforce AI chatbot Agentforce hits general availability. 

MONEY MATTERS

• Payments for AI agents platform Skyfire Systems raised $8.5 million in a new round.

• GPU cloud operator GMI Cloud secures $82M investment. 

• Conversational AI startup Sierra secures $175m funding.

• Read AI raises $50M to capitalize on strong demand for its AI summary bot.

• By 2025, global AI investment is projected to reach $200 billion.

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