💎 Meta's 405B Parameter AI, 🔒 Electromagnetic Espionage, and 🛰️ Starlink's Orbital Maneuvers
Thomas's Innovation Wrap #88
Greetings,
Here’s your weekly wrap of technology, innovation, and finance news.
🤖 Robotics
We discussed flamethrower robotic dogs in the first Innovation Wrap since its hiatus. Turns out you can also use fire-wielding dogs to blowtorch weeds, as Texas A&M researchers have demonstrated with their modified Boston Dynamics Spot robot (see video). This agricultural bot uses a controlled blowtorch to precisely heat weeds with 95% accuracy, offering a hot alternative to herbicides.
"The weeds don't die – you just suppress their growth so it gives your crop a chance to fight the weed."
MIT researchers have developed a system that can peel vegetables with human-like dexterity.
"These additional steps of doing rotation are something which is very straightforward to humans, we don't even think about it," says Agrawal. "But for a robot, this becomes challenging."
Former Tesla lead Chris Walti's startup Mytra has developed a warehouse robot that can lift 3000 lbs (1360kg) and navigate through a modular matrix.
At the core, the startup provides enterprises with a modularly deployed cell-based matrix structure through which an AI-powered bot navigates.
💎 Artificial Intelligence
Meta has unveiled Llama 3.1, a new 405 billion-parameter large language model that’s comparable to offerings from OpenAI and Anthropic, though Anthropic’s Claude 3.5 Sonnet still leads in most benchmarks. Llama 3.1 is open source, with Mark Zuckerberg aiming to make this an industry standard. You might expect this openness to translate to cost savings, but that’s not evident yet. On AWS Bedrock, Amazon’s LLM service, Llama 3.1 405B costs $5.32/$16 per million input/output tokens, more expensive than Claude 3.5 Sonnet’s $3/$15. The benefit of open source is it allows developers to fully customise, fine-tune, and control the model, which is potentially more cost-effective at scale.
Open source will ensure that more people around the world have access to the benefits and opportunities of AI, that power isn't concentrated in the hands of a small number of companies, and that the technology can be deployed more evenly and safely across society.
OpenAI’s latest offering, SearchGPT, joins the AI search race with a prototype search engine promising "fast and timely answers with clear and relevant sources.” While currently waitlisted, it’s not immediately apparent how this differs from Microsoft’s Bing experiment or Google’s efforts.
Apple has released new small open-source AI models called DCLM, while Nvidia launched AI Foundry to help businesses create custom large language models.
The AI Foundry combines Nvidia’s hardware, software tools, and expertise to enable companies to develop customized versions of popular open-source models like Meta’s recently released Llama 3.1.
JPMorgan has now rolled out its internal chatbot, LLM Suite, to 50,000 of the group’s 240,000 employees. An internal email described it as follows: “Think of LLM Suite as a research analyst that can offer information, solutions and advice on a topic.”
At JPMorgan, the chatbot could augment the work being done with “a hybrid of human and AI analysts, very similar to how the intelligence community works,” Igor Jablokov, founder and CEO of AI startup Pryon told Fortune.
A study has found that AI can detect suspicious comments on earnings calls, potentially complicating executive deflections.
In one example, the AI analyzed the transcript and flagged that management was possibly avoiding specifics, despite being pressed by analysts, according to Klement. The AI flagged “unusualness” most often when speakers offered lengthy responses and long discussions about non-financial topics, some of the most common ways execs deflect negative news.
Surprisingly, being polite to AI chatbots may improve their responses (see the pre-print paper), though experts warn against excessive flattery. They recommend "moderate politeness" – much like human interactions.
Using polite prompts, the authors found, can produce higher-quality responses from a large language model (LLM)—the technology powering AI chatbots. But there’s a point of diminishing returns; excessive flattery can cause a model’s performance to deteriorate, according to the paper. Ultimately, the authors recommend using prompts that tread a middle path of “moderate politeness,” not unlike the norm in most human social interactions.
Cohere raised $500m to take on OpenAI, while Chinese LLM provider Baichaun raised $700m from Alibaba, Xiaomi, and some state-backed funds.
Chevron is using generative AI to strike oil. Airtable has a new tool called Cobuilder that they say can generate an app from a prompt.
Emily Chang from Bloomberg interviewed Mark Zuckerberg in this 24-minute video. They discuss Meta's AI strategy, the company's long-term vision, and his personal life and leadership style.
💻 Chips and Computing
Elon Musk has unveiled a massive AI training facility with 100,000 Nvidia H100 GPUs to train xAI’s Grok. For context, Meta’s Llama 3.1 405b was trained on 16,000 Nvidia H100 GPUs. Musk is also doubling down on Tesla's Dojo supercomputer.
"I'm incredibly impressed by Nvidia's execution and the capability of their hardware," Musk said Tuesday. "What we are seeing is that the demand for Nvidia hardware is so high that it's often difficult to get the GPUs."
Amazon claims its in-house AI chips outperform Nvidia's by 50%, and startup Tenstorrent is challenging Nvidia with a low-priced RISC-V AI processor.
In quantum computing, PsiQuantum plans the largest US quantum facility, targeting million-qubit systems after securing an additional $US500 million in government incentives (over 30 years).
SK Hynix reported record profits from AI memory chip sales and is investing 9.4 trillion won in a new fab for next-gen DRAM and AI memory.
🛰️ Space
NASA's Perseverance rover has made a potentially groundbreaking discovery on Mars, finding a rock that could contain evidence of ancient microbial life. The "Cheyava Falls" rock features intriguing "leopard spots" resembling structures associated with microbial activity on Earth.
"Cheyava Falls is the most puzzling, complex, and potentially important rock yet investigated by Perseverance," said Ken Farley, Perseverance project scientist at Caltech.
Researchers have designed a wafer-thin light sail that could propel spacecraft to another star system faster than previously thought possible.
Star Catcher Industries has raised $12.25 million to develop the world's first space-based energy grid for satellites.
"Power infrastructure is the foundational building block of civilization and industry; our goal is to expand that foundation into LEO and beyond with our in-space power grid and service," Andrew Rush, Star Catcher's co-founder, president and CEO, said in the same statement.
A new study suggests that just a week in microgravity can dramatically age muscle cells.
SpaceX's Starlink satellites performed 50,000 collision-avoidance manoeuvres in six months, highlighting the growing complexity of managing orbital traffic and raising concerns about potential catastrophic collisions.
💊 Health
Neuroscientists have identified a neural pathway in mice that could explain the placebo effect, potentially leading to safer pain management alternatives.
For Alzheimer's, a promising nasal spray has shown success in clearing toxic tau proteins from brain cells, improving memory in mice after one dose.
"This nasal spray approach opens new avenues for non-invasive delivery of tau therapeutic antibodies directly to the brain, and it holds promise for many neurogenerative diseases," says Dr. Rakez Kayed, professor at the Department of Neurology at UTMB and the study's corresponding author.
In regenerative medicine, Northwestern University researchers have developed "dancing molecules" that regenerate cartilage in just three days, while University of Edinburgh engineers have created 3D-printed artificial blood vessels mimicking human veins, potentially improving heart bypass outcomes.
A promising HIV prevention drug, lenacapavir, has shown 100% efficacy in trials, with researchers urging affordable pricing. Meanwhile, the creation of the most extensive single-cell kidney atlas could revolutionise chronic kidney disease treatment.
"We now have a powerful tool for prognosis, outperforming traditional histopathological analysis especially in early-stage kidney disease," said Susztak, Co-Leader of the Penn-CHOP Kidney Innovation Center.
Lastly, a canine study reveals that dogs can smell and emotionally react to human stress, further validating the human-canine bond.
🌞 Renewables
The US Department of Energy is reinvesting in concentrated solar power, committing over $40 million to various projects. Despite past commercial challenges, researchers are exploring applications beyond electricity generation, including industrial heat production and energy storage.
CNBC produced a video discussing how China has cornered the market on nickel, a critical component for electric vehicles, by heavily investing in Indonesia's industry.
It is possible that by the end of the decade, the share of nickel coming from Indonesia for EV batteries will be as high as 75%.
⚙️ Mobility
Alphabet is injecting $5 billion into Waymo as it expands driverless services across the US. Google CEO Sundar Pichai:
"I'm really pleased with the progress Waymo is making, a real leader in the space and getting rave reviews from users,"
In China, Baidu's Apollo Go is outpacing Tesla with 6 million rides nationwide, thanks to heavily subsidised fares.
Kodiak Robotics has completed its first driverless semi-truck delivery in Texas' Permian Basin. They plan to start commercial autonomous operations next year.
Elon Musk plans to unveil the Tesla Robotaxi on October 10.
💲 Finance
A number of Chinese self-driving startups are coming to market. WeRide has filed for a potentially record-breaking US IPO, while Pony.ai eyes a September debut. This rush to float shares aims to fund development and provide investor exits. However, WeRide's financials reveal some challenges:
WeRide, which is incorporated in the Cayman Islands, had a loss of $268 million on revenue of $55 million last year.
Neobank Revolut has secured its UK banking licence, intensifying competition with traditional banks. The neobank is now entering a "mobilisation" stage before full launch. CEO Nik Storonsky commented:
"We are incredibly proud to reach this important milestone in the journey of the company and we will ensure we deliver on making Revolut the bank of choice for U.K. customers"
Elon Musk is seeking $5 billion from Tesla's board for his AI startup xAI, based on an X poll:
“Looks like the public is in favor. Will discuss with Tesla board”
Disinformation security startup Cyabra plans to list on NASDAQ via a SPAC. The transaction values the company at $70 million.
Cyabra’s AI platform collects publicly available information and provides its customers with real-time alerts, analysis and actionable insights. Cyabra has raised a total of $12.3 million from Founders Fund, OurCrowd, Red Forest Ventures, Summus Group, TAU Ventures, and others.
🔗 Blockchain and Crypto
The SEC has approved spot Ethereum ETFs, following January's Bitcoin ETF approval, allowing regulated investment in the second-largest cryptocurrency. Major players like BlackRock and Fidelity are involved, with offerings from VanEck and Franklin Templeton debuting last Tuesday.
Cantor Fitzgerald is launching a $2 billion bitcoin financing and lending business. CEO Howard Lutnick announced plans to "welcome Bitcoin into the financing family of the global financial markets," further cementing Bitcoin's acceptance in traditional finance.
🎮 Gaming
Netflix is ramping up its gaming efforts, planning over 80 new titles to complement its 100+ game catalogue. Unlike Google's Stadia, Netflix is focusing on mobile games that complement its streaming content, leveraging existing IP and user base.
Ultimately, those tie-in games give a solid indication of why this actually makes way more sense for Netflix than it ever did for Google.
Activision Blizzard released research that showed that players prefer skill-based matchmaking (SBMM). Their A/B testing in Call of Duty: Modern Warfare III, where they loosened skill constraints for half the player population, revealed that SBMM improved retention and reduced quit rates for 80-90% of players. The study effectively debunked the vocal online criticism against SBMM, proving that most gamers actually do enjoy a fair fight.
⚡ Other Snippets
Researchers have developed an AI model that can reconstruct digital signals from electromagnetic radiation leaking from HDMI cables, allowing potential hackers to spy on screen contents from meters away. This technique improves upon existing methods, reducing error rates by 60%. While likely already used in sensitive settings, researchers say ordinary users shouldn't be overly concerned about this enhanced form of electromagnetic espionage.
"Governments are worried about this, [but] I wouldn't say that the normal user should be too concerned," says Larroca. "But if you really care about your security, whatever your reasons are, this could be a problem."
On the scientific front, physicists may have found a way to create the hypothetical element 120, the heaviest ever, while researchers have discovered cocaine in sharks off Brazil's coast, raising environmental concerns.
Bloomberg explores how K-pop's engineered approach to creating idols is evolving (10-minute video). Companies are investing heavily in training to meet global demand, adapting their formula for international audiences while maintaining its core appeal.
“They are the gold standard now when it comes to creating fandom around artists.”
Personal Plug: Last Friday, we (Minotaur Capital) released our inaugural quarterly report. If you enjoy the Innovation Wrap, you might find our deep dives into global investment opportunities equally intriguing. You can also sign up for fund updates here.
Have a great week,
Thomas
About Thomas Rice
Thomas Rice co-founded Minotaur Capital, a technology-driven, AI-led global equities fund, and is based in Sydney, Australia. He can be found on the X at @thomasrice_au.