🤖 Is Google’s Gemini 2.0 Redefining AI Reasoning?

Happy Friday, AI & Data Enthusiasts! From Google’s bold advancements in AI reasoning to Perplexity’s massive funding boost, the AI landscape is evolving rapidly. Today’s newsletter covers some surprising connections involving OpenAI’s Sam Altman and GitHub’s game-changing decision to make Copilot free for all.

In today’s edition: 

🤖 Google’s Gemini 2.0: A Bold Leap in AI Reasoning

💰 Perplexity Raises $500M Amid Fierce AI Search Competition

🔍 Sam Altman’s Surprising Connection to OpenAI Equity

🚀 GitHub Makes Copilot Free for Everyone

- Naseema Perveen

WHAT CAUGHT OUR ATTENTION MOST

Google’s Gemini 2.0: A Bold Leap in AI Reasoning

Google has unveiled Gemini 2.0 Flash Thinking Experimental, its first experimental reasoning AI model. Positioned as a tool for tackling complex problems in fields like programming, math, and physics, it’s already sparking comparisons with similar models like OpenAI’s o1.

• Reasoning Focus: Gemini 2.0 aims to strengthen its reasoning through "thought-based" training, designed for multimodal understanding and problem-solving.

• Experimental Nature: Currently available in AI Studio, the model shows promise but struggles with basic tasks like counting letters accurately.

• Rising Competition: The release follows a surge of reasoning models from rivals like DeepSeek and Alibaba, highlighting the race to improve AI generative capabilities.

• Challenges Ahead: Reasoning models require substantial computational resources, making scalability and performance consistency key hurdles.

Gemini 2.0 Flash Thinking Experimental marks Google's ambitious step into the reasoning AI space. While it has room to grow, it’s a fascinating glimpse into AI’s future problem-solving potential.

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TECH TALK

Venture capitalist and technology visionary Vinod Khosla takes the stage to share 12 bold predictions of technology and its transformative impact on society. From breakthroughs in AI and healthcare to sustainable innovations and human potential, Khosla envisions a world reshaped by science and engineering.

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KEEP YOUR EYE ON IT

Perplexity Raises $500M Amid Fierce AI Search Competition

In a landmark move, AI-powered search engine Perplexity has raised a staggering $500 million in funding, pushing its valuation to $9 billion. This latest round, led by Institutional Venture Partners, highlights the intense race to dominate the AI search market, where innovation and competition are accelerating at an unprecedented pace.

• Massive Funding Milestone: Perplexity’s $500M funding round closed in early December, reflecting investors’ strong belief in the startup’s potential. With its valuation now at $9 billion, Perplexity is cementing its position as a key challenger in the AI-driven search market.

• Heightened Competition: The race in AI-powered search is heating up, with OpenAI’s ChatGPT Search and Google’s plans for an “AI mode” in its search engine setting the stage for fierce rivalry. Perplexity stands out with its user-friendly interface and accurate, AI-driven summaries.

• Strategic Acquisition: To maintain its edge, Perplexity recently acquired Carbon, a startup that specializes in connecting AI systems to external data sources. This acquisition signals the company’s commitment to enhancing its search capabilities and providing deeper, more contextualized results.

• Legal Hurdles: Despite its successes, Perplexity faces legal challenges, including a class-action lawsuit alleging copyright infringement. Navigating these issues will be critical for the company’s long-term growth and reputation.

Perplexity’s significant funding and bold moves underscore its ambition to lead the AI search revolution. With its innovative tools and strategic acquisitions, the startup is well-positioned to compete with giants like Google and OpenAI. As the AI search space evolves, all eyes are on Perplexity to see how it will shape the future of digital information retrieval.

Sam Altman’s Surprising Connection to OpenAI Equity

OpenAI CEO Sam Altman has long maintained that he holds no equity in the company, often citing his passion for AI as his sole motivation. However, a recent revelation on Bari Weiss’ podcast shed light on a previously unknown equity stake Altman once held through Sequoia, sparking questions about his role in the company’s complex corporate structure.

• Equity History: Altman disclosed he had a small stake in OpenAI through a Sequoia fund, which he later sold. His only current exposure is through Y Combinator, a fact OpenAI has publicly acknowledged.

• Nonprofit Foundations: Altman initially opted not to take equity to remain an independent director, adhering to OpenAI’s nonprofit structure. This decision has drawn scrutiny as OpenAI transitions toward a for-profit model.

• Transition Controversy: OpenAI’s move to convert its for-profit branch into an independent entity faces challenges, including a lawsuit from Elon Musk and opposition from Meta. Altman’s potential future equity in this structure has been denied by both the CEO and the company.

• Tensions Rise: Altman criticized Meta for opposing the transition and called Musk a “bully” for his legal actions, reflecting the high stakes and conflicts in OpenAI’s evolution.

Sam Altman’s past equity ties to OpenAI, though minor, add a layer of intrigue to the company’s ongoing transformation. As OpenAI navigates legal battles and structural changes, Altman’s leadership and transparency will remain under the microscope.

GitHub Makes Copilot Free for Everyone

GitHub, now boasting 150 million developers on its platform, has announced a free version of its AI-powered Copilot coding assistant. Previously available only to students, educators, and open-source maintainers, the free version now extends to all users and integrates with Microsoft’s popular VS Code editor.

• Free Access Details:

  • Limitations: Free users are capped at 2,000 code completions per month, with each suggestion counting against the limit. Access to AI models is restricted to Anthropic’s Claude 3.5 Sonnet and OpenAI’s GPT-4o.

  • Features Included: All Copilot Extensions and skills are available, with a 50-message limit for Copilot Chat.

  • Supported Platforms: The free version works with VS Code, Visual Studio, JetBrains, and GitHub.com.

• Market Dynamics:

  • Competitors like Tabnine, AWS, and Qodo also offer free plans, making GitHub’s move a strategic play to maintain its leadership in the AI coding tools space.

  • By leaning on VS Code’s vast user base, GitHub hopes to attract occasional developers and those from emerging markets where affordability is critical.

• Vision for the Future:

  • CEO Thomas Dohmke emphasized a mission to enable one billion developers globally, particularly in regions where economic barriers exist.

  • The initiative aims to make AI-powered development accessible, eliminating barriers for aspiring coders worldwide.

By embracing a freemium model for Copilot, GitHub underscores its commitment to democratizing software development. This bold move aligns with its vision of fostering global innovation and productivity, setting the stage for a future where anyone can code with the help of AI.

TERM OF THE DAY

Decision Boundary

A Decision Boundary in data science is like an invisible line that separates different groups of things based on their features. For example, imagine you’re sorting fruits into “apples” and “oranges” based on their size and color. The decision boundary is the rule (like “if it’s smaller and red, it’s an apple; if it’s bigger and orange, it’s an orange”) that helps decide where each fruit belongs. It’s how a computer learns to tell one group apart from another.

Read more terms like this in our Glossary. 

ICYMI

• OpenAI whistleblower was found dead in his apartment.

• Perplexity acquires Carbon to connect AI search to your work files.

• Microsoft dominates AI Hardware with 500K Nvidia Chips in 2024.

• ChatGPT is now available on landlines.

• Google’s Gemini faces accuracy concerns amid new contractor guidelines.

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$$$ MONEY MATTERS

• Robotics platform ANYbotics raised $60 million to expand the adoption of its inspection robots.

• AI language learning platform Speak raised $78 million at $1 billion valuation.

• Google joins $90M investment into Cassava to bolster Africa’s digital infrastructure.

• BlueQubit raises $10M to take Quantum software into real-world applications.

• App downloads decline 2.3% in 2024, but consumer spending grows to $127B..

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