Meta's Glasses Privacy Concerns, Nvidia's Decline, Samsung's Future Costs, and Microsoft's Scrutiny

Happy Tuesday, AI & Data Enthusiasts! In case you missed it, Meta's smart glasses were the highlight of its Connect Conference 2024. As AI increasingly integrates into wearables, privacy concerns are on the rise. Let’s explore this development and more on latest AI news.

In today’s edition: 

• Meta’s Smart Glasses Raise Privacy Concerns Over AI Training

• Nvidia Shares Drop as Chinese Rivals Surge After Beijing's Chip Guidance

• Samsung’s AI Features Could Come with a Price Tag by 2025

• Microsoft Faces Increased Competition Scrutiny in Germany, Including AI Oversight

- Naseema Perveen

WHAT CAUGHT OUR ATTENTION MOST

Meta’s Smart Glasses Raise Privacy Concerns Over AI Training

Meta’s second-generation Ray-Ban Stories are equipped with AI-powered cameras that can capture photos both intentionally and passively. However, the company remains unclear on whether it uses these images to train its AI models, sparking privacy concerns among users.

Meta representatives declined to confirm if the photos taken by the glasses are being used for AI training, leaving many wondering about the fate of their data.

• Meta’s smart glasses can capture photos without direct input, triggered by keywords like “look.”

• Meta hasn’t clarified whether it uses these images to train AI models, creating ambiguity around user privacy.

• The company is already training its AI models on public Instagram and Facebook posts but remains silent on data from its smart glasses.

• Competitors like OpenAI and Anthropic have clearer policies regarding the use of user data for AI training.

Meta’s reluctance to address these concerns leaves users in the dark about how their images are handled. As wearable technology advances, transparency will be crucial to building trust.

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KEEP YOUR EYE ON IT

Nvidia Shares Drop as Chinese Rivals Surge After Beijing's Chip Guidance

Nvidia shares fell while Chinese chipmakers surged following news that Beijing urged AI companies to avoid Nvidia’s chips. This shift highlights the impact of geopolitical tensions on the global chip market, with the U.S. export restrictions playing a central role.

• Nvidia’s decline: Nvidia shares dropped 2.2% after reports that Beijing advised Chinese AI companies to avoid Nvidia’s H20 chips. Premarket trading saw an additional 2% drop.

• Chinese chipmakers’ rise: Shares in Chinese companies like Cambricon and SMIC surged by 20%, hitting daily limits on the Shanghai exchange, as they are expected to benefit from the new guidance.

• U.S. export restrictions: Nvidia’s H20 chips are the most advanced it can sell in China under U.S. export controls aimed at slowing China’s AI progress.

• The bigger picture: Although U.S. restrictions have hindered China’s AI chip development, Beijing’s efforts have spurred rapid adaptation in its domestic chip sector.

As geopolitical tensions continue to influence market dynamics, this development could mark a significant turning point for both Nvidia and its Chinese competitors. The future of AI chip competition will likely be shaped by how both sides navigate these restrictions and adapt to evolving regulations.

Samsung’s AI Features Could Come with a Price Tag by 2025

Samsung has been spotlighting its AI capabilities throughout 2024, emphasizing them as both a key feature and a potential revenue source. Now, there are growing indications that some of these AI tools may no longer be free by the end of 2025.

• Potential for paid AI features: Samsung hinted that certain AI features may incur fees, as mentioned during the launch of the Galaxy Tab S10 and Galaxy S24 FE. This follows similar suggestions made earlier in the year during the Galaxy S24 and Galaxy Z6 launches.

• Uncertainty: While Samsung has yet to specify which AI tools may come with a price tag, the possibility leaves room for speculation as to which features will remain free and which will require payment.

• Subscription model insights: Samsung Health head Hon Pak mentioned the potential for a subscription model, hinting that if users are expected to pay, they should receive comprehensive, end-to-end services—suggesting a similar approach to AI features.

With AI playing a central role in Samsung’s strategy, these developments could shape the future of its offerings, particularly if Google—Samsung’s AI partner—also moves toward monetizing its AI tools.

Microsoft Faces Increased Competition Scrutiny in Germany, Including AI Oversight

Microsoft is now under increased competition scrutiny in Germany, as the Federal Cartel Office (FCO) has placed the tech giant under a special abuse control regime. This designation, lasting five years, allows regulators to closely monitor Microsoft’s influence, particularly in its use of AI tools like Copilot. The FCO is concerned about the company’s market power and partnerships, such as its relationship with OpenAI, which could potentially stifle competition.

While no specific actions have been taken yet, the FCO has emphasized that it will keep a close watch on Microsoft’s activities, especially those related to AI. This move aligns with broader European regulatory efforts, but Germany’s law gives its regulators more freedom to act on Microsoft as a whole, beyond the EU's Digital Markets Act, which only governs select platforms.

🎤 VOICE YOUR OPINION

ICYMI

• Mira Murati quits after pivoting ChatGPT to the forefront of the artificial intelligence wave.

• Big tech is rushing to find clean power to fuel AI’s insatiable appetite. 

• Elon Musk decrees removal of bold and italics fonts from X timeline.

• Texas Alpha School teaches high school students with AI. 

• Augmented Intelligence claims its AI can make chatbots more useful.

MONEY MATTERS

• Google’s $120M push for global AI education.

• Blackstone plans to invest £10bn in Europe's largest AI data center. 

• 11x.ai, a developer of AI sales reps, has raised $50M Series B led by A16Z. 

• Qodo raises $40M Series A to bring quality-first code generation and testing to the enterprise.

• Series has quietly raised $28M from Netflix, Dell, a16z, and others. 

LINKS WE’RE LOVIN’

✅ Podcast: Tech Leaders Debate Timeline and Impact of AI Superintelligence. 

✅Cheat sheet: Software Development Life Cycle CheatSheet.

✅Course: Artificial Intelligence for Beginners - A Curriculum.

✅Webinar: Drone Inspection: Building a Scalable and Efficient Data Pipeline.

✅Watch: Huawei Mate XT Ultimate Unboxing & First Look. 

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