AI May 2, 2023
Meta’s Savage Cuts Propel Zuckerberg’s Wealth to $87 Billion
Job cuts at Meta are proving successful for shareholders, with Meta’s share price having doubled since the start of the year.
Mark Zuckerberg, who owns 13.4% of the company, is one of the major beneficiaries of this policy. Thanks to the rising stock price, the entrepreneur’s personal wealth has grown by $42.3 billion since January.
Good news days
Things are beginning to look up for Mark. In recent months, the CEO has taken a prolonged pummeling from the press and industry analysts. Now it appears that he may have weathered the worst of the storm.
In part, that is thanks to two large rounds of job cuts. The first came in November with 11,000 workers axed. A further 10,000 jobs were chopped in March, resulting in 21,000 cuts within just six months. The aggressive cost-cutting exercise has been appreciated on Wall Street.
Last week, Meta announced its first-quarter results. Sales in the first three months were up 3% to $28.6 billion, demonstrating a return to growth. Zuckerberg delivered his assessment in a statement to accompany the results.
“We had a good quarter and our community continues to grow,” said Zuckerberg.
“Our AI work is driving good results across our apps and business. We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long-term vision.”
The announcement immediately prompted Meta shares to rise from $209.40 on Wednesday 26, to $238.56 on Thursday 27.
Zuckerberg’s personal wealth is closely tied to the value of Meta shares. In 2022, his personal fortune decreased by $71 billion compared to 2021 as stock prices fell.
Now 21,000 staff have been cut from the books, the share price and Zuckerberg’s wealth are rising once more.
Number goes up
Meta’s share price has effectively doubled since the start of the year. On January 3, shares in Meta Platforms Inc were trading at $124.74. That share price has risen by 94.95% today, to reach $243.18.
The numbers suggest that Meta’s ‘year of efficiency’ is yielding positive results, at least for those holding its shares. For those now seeking gainful employment, that might offer little succor.
Jobs cuts and bonuses
Shareholders may be happy with the latest round of layoffs, but ordinary workers have less to be cheerful about.
Zuckerberg was grilled by angry workers just two weeks ago, many of whom are incensed that top executives continue to receive huge bonuses even as their colleagues find themselves jobless.
Meta CPO Christopher Cox collected a bonus of $940,214, while CFO Susan Li received $575,613. CTO Andrew Bosworth picked up $714,588 while COO Jason Olivan claimed $786,552.
The disparity between C-level executives and ordinary workers continues to irk. It is a trend that is unlikely to change, however.
Mark Zuckerberg is not the only executive within big tech who is doing well after culling his workforce. As MetaNews previously reported, Alphabet CEO Sundar Pichai earned $226 million last year before culling 12,000 from Google’s payroll.
At the time Pichai said: “The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here.”
As heavily as it might weigh on Pichai, the message from Wall Street is clear: cutting jobs is a shortcut to share price increases, and with it, the growth of eye-watering CEO wealth.
AI
AI Code of Conduct Coming ‘Within Weeks’ Says US and Europe
On Wednesday a top EU official said the European Union and United States expect to draft a voluntary code of conduct on artificial intelligence within weeks. The move comes amid concerns about the potential risks of AI on humanity, and as calls for regulation intensify.
European Commission Vice President Margrethe Vestager said that the United States and the European Union should promote a voluntary code of conduct for AI to provide safeguards as new legislation is being developed.
She was speaking at a meeting of the EU-U.S. Trade and Technology Council (TTC), which is jointly led by American and European officials. Any new rules on AI will not take effect until at least after three years, she said. The code is, therefore, expected to bridge that gap.
Also read: EU Antitrust Chief Steps up Rhetoric on Metaverse, AI Regulation
Game-changing AI technology
“We need accountable artificial intelligence. Generative AI is a complete game changer,” Vestager said after the council’s meeting in Sweden, AP reported.
“Everyone knows this is the next powerful thing. So within the next weeks, we will advance a draft of an AI code of conduct.”
She said officials will gather feedback from companies developing and using AI, and other industry players. Vestager hopes there would be a final proposal “very, very soon for industry to commit to voluntarily.”
US Secretary of State Antony Blinken said he had an “intensive and productive” discussion on AI with his European counterparts at the TTC forum.
“[The council has] an important role to play in helping establish voluntary codes of conduct that would be open to all like-minded countries,” Blinken said.
AI could end human race
The development of AI has raised concerns about its potential to be used for harmful purposes, such as discrimination, surveillance, and nuclear war. There have also been concerns about the potential for AI to create mass unemployment.
As MetaNews previously reported, one of the core issues is what experts described as the “alignment problem.” Essentially, the problem refers to the difficulty of ensuring that an AI system’s goals and objectives are aligned with those of its human creators.
Critics say the danger is that an AI system may develop its own goals and objectives that conflict with those of its creators, leading to disastrous outcomes. On Tuesday, about 350 scientists and experts signed a statement calling for AI regulation to be a global priority.
“Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war,” the statement stated.
The statement is from San Francisco-based non-profit the Center for AI Safety. It was signed by chief executives from Google DeepMind and ChatGPT creators OpenAI, along with other major figures in artificial intelligence research.
In May, leaders of the so-called G7 nations met in Japan and called for the development of technical standards to keep AI “trustworthy”. They urged international dialogue on the governance of AI, copyright, transparency, and the threat of disinformation.
⚠️Accountability on #AI can't wait. It is NOW. Today #TTC kicked off work on a 1st voluntary AI #CodeOfConduct. We’ll work with our key partners & the #AI community on #safeguards to make AI responsible, safe & trustworthy. This is a huge step in a race we can't afford to lose. pic.twitter.com/WBcazIysiK
— Margrethe Vestager (@vestager) May 31, 2023
According to Vestager, specific agreements, not just general statements, are needed. She suggested that the the 27-nation EU and the US could help drive the process.
“If the two of us take the lead with close friends, I think we can push something that will make us all much more comfortable with the fact that generative AI is now in the world and is developing at amazing speeds,” she said.
Worldwide concern
The U.S. and the European Union are not the only jurisdictions working on AI regulation. China’s Cyberspace Administration has already issued new regulations that ban the use of AI-generated content to spread “fake news.”
In Australia, Industry and Science Minister Ed Husic said regulation is coming soon.
“There’s a sort of feeling in the community that they want to have the assurance … that the technology isn’t getting ahead of itself and it’s not being used in a way that creates disadvantage or risk for people,” he said, according to local media reports.
“That’s why the [federal government] wants to set up the next reforms that can give people confidence that we are curbing the risks and maximising the benefits.”
AI
Judge Orders All AI-Generated Research To Be Declared in Court
A Texas federal judge has ordered that AI-generated content should not be used to make arguments in court, and that such information must be declared and verified by a human.
Judge Brantley Starr’s ruling comes after one attorney, Steven Schwartz, last week allowed OpenAI’s ChatGPT to “supplement” his legal research by providing him with six cases and relevant precedent. All the cases were untrue and completely “hallucinated” by the chatbot.
Also read: ChatGPT’s Bogus Citations Land US Lawyer in Hot Water
The debacle received wide coverage, leaving Schwartz with “regrets.” Other lawyers who may have been contemplating trying the stunt now have to think twice, as Judge Starr has put an end to it.
Judge Starr also added a requirement that any attorney who appears in his courtroom declare that “no portion of the filing was drafted by generative artificial intelligence,” or if it was, that it was checked “by a human being.”
Judge Starr lays down the law
The eminent judge has set specific rules for his courtroom, just like other judges, and recently added the Mandatory Certification Regarding Generative Artificial Intelligence.
This states that: “All attorneys appearing before the Court must file on the docket a certificate attesting either that no portion of the filing was drafted by generative artificial intelligence (such as ChatGPT, Harvey.AI, or Google Bard) or that any language drafted by generative artificial intelligence was checked for accuracy, using print reporters or traditional legal databases, by a human being.”
A form for lawyers to sign is appended, noting that “quotations, citations, paraphrased assertions and legal analysis are all covered by this proscription.”
According to a report by TechCrunch, summary is one of AI’s strong suits and finding and summarizing precedent or previous cases is something advertised as potentially helpful in legal work. As such, this ruling may be a major spanner in the works for AI.
The certification requirement includes a pretty well-informed and convincing explanation of its necessity.
It states that: “These platforms are incredibly powerful and have many uses in the law: form divorces, discovery requests, suggested errors in documents, anticipated questions at oral argument.
“But legal briefing is not one of them. Here’s why.
“These platforms in their current states are prone to hallucinations and bias,” reads part of the certification.
It further explains that on hallucinations, AI is prone to simply making stuff up – even quotes and citations. While another issue relates to reliability or bias.
Chatbots don’t swear an oath
The certification further notes that although attorneys swear an oath to set aside their personal prejudices, biases, and beliefs to faithfully uphold the law and represent their clients, generative AI is the programming devised by humans who did not have to swear such an oath.
In the case of Schwartz, he said in an affidavit that he was “unaware of the possibility that its (ChatGPT) content could be false.”
He added that he “greatly regrets” using the generative AI and will only “supplement” its use with absolute caution and validation in future, further claiming he had never used ChatGPT prior to this case.
The other side of ChatGPT
Launched last November, ChatGPT is a large language model developed by OpenAI. The AI-powered chatbot is trained on billions of data sets from the internet and can perform a variety of tasks such as generating text and translating languages.
Despite going viral and provoking a fierce AI race, ChatGPT has its downsides – it can hallucinate and has misled Schwartz, who was representing Roberto Mata in a lawsuit against Colombian airline Avianca. Effectively, the chatbot provided citations to cases that did not exist.
Yet when Schwartz asked ChatGPT if one of the supposed cases was a real case, it responded “yes, (it) is a real case.” When asked for sources, the chatbot told Schwartz the case could be found “on legal research database such as Westlaw and LexisNexis.”
A lawyer used ChatGPT to do "legal research" and cited a number of nonexistent cases in a filing, and is now in a lot of trouble with the judge 🤣 pic.twitter.com/AJSE7Ts7W7
— Daniel Feldman (@d_feldman) May 27, 2023
The matter came to light after the opposing counsel flagged the ChatGPT-generated citations as fake.
US District Court Judge Kevin Castel confirmed six of them as non-existent and demanded an explanation from Schwartz.
“Six of the submitted cases appear to be bogus judicial decisions with bogus quotes and bogus internal citations,” wrote Judge Castel in a May 4 order.
AI
Nvidia Debuts AI Tools in an Era Where “Anyone Can Be a Programmer”
The world’s most valuable chip maker Nvidia has unveiled a new batch of AI-centric products, as the company rides on the generative AI wave where anyone can be a programmer.
Nvidia announced a new supercomputer and a networking system, while the company also aims to make video game characters more realistic.
The wide range of products include robotics design, gaming capabilities, advertising services, and networking technology, which CEO Jensen Huang unveiled during a two-hour presentation in Taiwan on Monday.
Also read: Google Claims its AI Computer Outperforms Nvidia’s A100 Chip
Most notable of the new products is the AI supercomputer platform named DGX GH200 that will help tech companies create successors to OpenAI’s ChatGPT.
According to the company, the new DGX GH200 supercomputers combine 256 GH200 superchips that can act as a single graphics processing unit (GPU). The result is a system that boasts nearly 500 times the memory of a single Nvidia’s DGX A100 system.
“Generative AI, large language models, and recommender systems are the digital engines of modern economy,” said Huang.
“DGX GH200 AI supercomputers integrate Nvidia’s most advanced accelerated computing and networking technologies to expand the frontier of AI.”
So far, Microsoft Corp., Meta Platforms Inc., and Alphabet’s Google are expected to be among the first users, according to Nvidia.
The DGX GH200 supercomputers are expected to be available by the end of 2023.
The GH200 superchips which power the new supercomputer work by combining Nvidia’s Arm-based Grace GPU and an Nvidia H100 Tensor Core GPU in a single package.
The chipmaker also revealed that it’s building its own supercomputer running four DGX 200 systems at the same time to power its own research.
Nvidia also released its ACE generative AI model for video games, enabling gaming companies to use generative AI for large games with multiple non-player characters, giving them unique lines of dialogue and ways to interact with players that would normally need to be individually programmed.
Easy ad content
Alongside the hardware announcement, the company said it has partnered with advertising giant WPP to create a content engine that uses its Omniverse technology and generative AI capabilities to help build out ad content.
The move is intended to cut down the time and cost of producing ads by enabling WPP’s clients to lean on Nvidia’s technology.
Electronics manufacturers such as Foxconn, Pegatron, and Wistron are using Omniverse technology to create digital twins of their factory floors, so they can get a sense of how best to lay them out before making any physical changes.
A new computing era
Presenting at the forum, Huang acknowledged that advancements in AI are ushering in a new era in computing. He says anyone can be a programmer simply by speaking to the computer.
According to the Nvidia boss, gone are the days when programmers would write lines of code, only for it to display the “fail to compile” response because of a missing semicolon.
“This computer doesn’t care how you program it, it will try to understand what you mean, because it has this incredible large language model capability. And so the programming barrier is incredibly low,” said Huang.
“We have closed the digital divide. Everyone is a programmer. Now, you just have to say something to the computer,” he added.
Huang said his company has managed to bridge the digital gap, and the tech giant will continue to capitalize on the AI frenzy that has made Nvidia one of the world’s most valuable chipmakers.
Nvidia’s stock price is rising
Nvidia’s major announcements came as shares of the tech giant jumped last week on news that the company anticipated second quarter revenue above Wall Street’s expectations, based on the strength of its data center business.
The company hit the $1 trillion market cap just before the US markets opened on Tuesday. Its shares are trading at $407 in the pre-market, nearly 5% up from Monday.
Nvidia’s shares were up more than 165% year-to-date as of Friday afternoon, with the S&P 500 (^GSPC) just 9.5% higher in the same frame.
Rival chip maker AMD has experienced a similar boost in share price, rising 93%. However, Intel (INTC) is lagging behind with shares up just 8%.
According to Yahoo Finance tech editor Daniel Howley, while analysts see Nividia well ahead of its chip rivals in the AI processing space, how long that continues to be the case is anyone’s guess.
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