Welcome back to your daily memorandum talking tech, business, AI, markets, and more. 🗞️

In today’s edition we are tackling the following:

💰 Nvidia and xAI join Microsoft, and BlackRock in a $30B AI infrastructure push.
🤖 OpenAI launches o1-pro, its most expensive AI model to date.
📱 Google announces Pixel 9a with OLED display and 7 years of updates.
📉 Tesla stock falls 6% as weak sales and leadership concerns grow.
🌍 EU charges Google with Digital Markets Act violations, threatening huge fines.

TECH

• Nvidia and xAI Join $30 Billion AI Infrastructure Partnership

  • Nvidia and Elon Musk's xAI have joined the AI Infrastructure Partnership, a consortium led by Microsoft and BlackRock.

  • The initiative focuses on building AI data centers and energy solutions to address rising computational and energy demands in AI technologies.

  • Contributions from GE Vernova and NextEra Energy will enhance AI energy solutions, with $100 billion committed for initial deployment.

• OpenAI Launches o1-pro, Its Most Expensive AI Model Yet

  • OpenAI has introduced o1-pro, an upgraded AI model designed to provide more accurate and reliable responses.

  • The model is priced at $150 per million input tokens and $600 per million output tokens, making it OpenAI's highest-cost offering.

  • Currently available to select developers, o1-pro is optimized for complex problem-solving across various AI applications.

  Google Unveils the New Pixel 9a for $499

  • Google has announced the Pixel 9a, a budget-friendly smartphone featuring a 6.3-inch OLED display with a 60-120Hz refresh rate.

  • The device includes a dual-camera setup with a 48MP main sensor, a 13MP ultrawide lens, and seven years of software updates.

  • Priced at $499, the Pixel 9a will be available in April, offering an affordable option without compromising on performance.

BUSINESS

• Microsoft Appoints Kathleen Hogan as Chief Strategy Officer

  • Kathleen Hogan, formerly Chief People Officer, has been promoted to Executive Vice President of Strategy and Transformation.

  • In her new role, Hogan will define Microsoft's corporate strategy and structure, focusing on continuous transformation in the AI era.

  • Amy Coleman, previously overseeing HR operations, succeeds Hogan as Chief People Officer, joining the senior leadership team.

  Nvidia Acquires Synthetic Data Startup Gretel

  • Nvidia has acquired Gretel, a San Diego-based AI training startup for a nine-figure sum exceeding $320 million.

  • Gretel's team of approximately 80 employees will integrate into Nvidia, enhancing its suite of generative AI services for developers.

  • This acquisition aligns with Nvidia's strategy to provide developers with tools for generating realistic, privacy-preserving datasets to train AI.

  Tesla and Musk Respond to Trump’s Domestic Terrorism Claims

  • Elon Musk criticized Donald Trump's recent comments on domestic terrorism, stating that political rhetoric is risky for businesses like Tesla.

  • Tesla has increased security measures at its facilities following heightened threats, while Musk urged policymakers to focus on stability.

  • The situation has sparked broader debates over corporate involvement in political discourse and the responsibilities of business leaders.

CONTENT

• Why Can't AI Make Its Own Discoveries?

  • Yann LeCun, Meta’s chief AI scientist, discusses AI models' limitations, focusing on their lack of abstract understanding.

  • He argues AI systems must develop world models to predict and understand reality, moving beyond basic data processing.

  • LeCun dismisses fears of superintelligent AI, saying risks are exaggerated and humans will remain in control.

• An Unfiltered Conversation with Dwarkesh Patel

  • Dwarkesh Patel, host of the Dwarkesh Podcast, discusses AI's societal impact and its rapid evolution over two years.

  • The conversation explores AI-generated content, infinite dimensionality, and maintaining human authenticity in an AI world.

  • Topics also include fully automated firms, AI’s explosive growth, and its influence on the future of work.

• How AI Models Steal Creative Work — and What to Do About It

  • Ed Newton-Rex warns generative AI often uses unlicensed creative work as training data, threatening artists' livelihoods.

  • He proposes a licensing model ensuring fair pay for creators, allowing AI companies and artists to coexist.

  • Newton-Rex stresses the need to balance AI progress with ethical protections for creative industries.

WORLD

• EU Accuses Google of Violating Digital Markets Act

  • The European Commission charged Google with breaching the Digital Markets Act by prioritizing its services in search results.

  • Google is also accused of restricting app developers from directing users to external purchasing options, limiting consumer choice.

  • Violations of the DMA could result in fines of up to 10% of Google’s global annual revenue, amounting to billions in potential penalties.

  Hungary Bans LGBTQ+ Pride Events, Sparking Protests

  • Hungary’s parliament passed a law banning LGBTQ+ Pride events, citing child protection concerns and permitting police to use face ID.

  • The law has triggered large protests in Budapest, with thousands blocking a central bridge in defiance of police orders.

  • Critics argue the law violates fundamental rights and serves as a distraction from domestic issues ahead of upcoming elections.

  EU Excludes U.S. Arms Makers from Massive Defense Plan

  • The EU unveiled the Readiness 2030 program, boosting its military industry with €800 billion while excluding U.S. and U.K. contractors.

  • The initiative seeks to reduce reliance on foreign defense systems and strengthen Europe’s defense technology and industrial base.

  • This move aligns with the EU’s strategy to enhance autonomy in defense capabilities amid shifting global geopolitical dynamics.

AND MORE…

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• Congo and Rwanda Presidents Call for East Congo Ceasefire During Qatar Sit-Down

  • Presidents Félix Tshisekedi (DRC) and Paul Kagame (Rwanda) met in Qatar, mediated by the Emir, agreeing on an immediate ceasefire.

  • This marks their first meeting since M23 rebels, allegedly backed by Rwanda, intensified offensives, capturing major territories and cities.

  • Despite the ceasefire call, M23 rebels advanced into Walikale, complicating peace efforts and highlighting challenges.

• What Does OpenAI Really Want from Trump?

  • OpenAI submitted a policy proposal to the White House, seeking relief from state-level AI regulations, particularly California's SB 1047.

  • The company argues a patchwork of state laws could hinder innovation and U.S. AI leadership, pushing for federal preemption.

  • Critics warn of lacking governance proposals, emphasizing the need for balanced regulations to address AI’s growing societal impacts.

• Windows 11 Will Soon Let You Know Why Your PC Hardware Sucks

  • Microsoft is developing a Windows 11 feature to inform users how weak RAM or GPUs affect PC performance, as found in recent preview builds.

  • This FAQ section in settings provides details on GPU memory, system RAM, and OS versions, offering recommendations.

  • The feature is being tested and may be included in the upcoming 24H2 update, enhancing user awareness of hardware limitations.