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In today’s edition, we have a scoop on the Gates Foundation awarding $2.7 million to Jeff Hawkins, c͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
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June 21, 2024
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Technology

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Reed Albergotti
Reed Albergotti

Hi, and welcome back to Semafor Tech.

Vinod Khosla recently said something interesting on the More or Less podcast that caught my attention: “Everybody’s scared to invest in anything other than transformer models. We’re not. I’m very focused on, you know, esoteric things.”

Khosla, of course, flagged his investment in Symbolica, a company we’ve written about that is taking a completely different approach to AI models than the ones developed by OpenAI and all the tech giants. “So there are, even at the model layer, orthogonal approaches,” he said.

In other words, much of the tech industry is orienting itself around one approach to AI — the one that powers models like ChatGPT, Gemini, Claude, and now even Siri. But there’s this possibility of a black swan event in AI, where that method might turn out to be completely wrong.

Some of the smartest people in tech are betting at least some of their money on that possibility. And as Katyanna details below, one of those people is Bill Gates. His foundation is backing a company that believes the key to AI lies inside the neocortex, a part of the human brain that evolved most recently and is only found in mammals.

If one of these off-the-beaten-path approaches turns out to be right, it would be earth shattering. It would mean that the tens of billions of dollars tech companies are spending right now on scaling up transformer models are essentially a waste. That may seem unlikely, but it’s not impossible.

Move Fast/Break Things
Wikimedia Commons

➚ MOVE FAST: KL. Kuala Lumpur has become one of the belles of the AI ball. In recent weeks, Malaysian government officials have touted a raft of multibillion dollar investments from major tech companies like Microsoft and Google. The latest comes from TikTok owner ByteDance, which is making the country an AI hub.

➘ BREAK THINGS: KO. US cyber hacks have done a lot of damage lately. The software thousands of auto dealers use to run their business was knocked out of commission this week. Meanwhile, UnitedHealthcare issued an official public notice of a recent ransomware attack, which took down its unit that processes half of all US medical claims.

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Artificial Flavor

Claude 3.5 Sonnet is the latest AI model from Anthropic. And according to benchmarks, it’s one of the best ones out there. If this gives you déjà vu, it might be because we wrote about Anthropic’s launch of Claude 3 in March, which was arguably the best AI model out there until OpenAI recently announced GPT-4o.

You get the point. Claude 3.5 Sonnet will be almost immediately surpassed by some new model that will surely come out in the following weeks or months. Get used to this. There’s a massive race between makers of these foundation models to best each other on a regular basis, even if the improvements aren’t massive.

OpenAI chief Sam Altman has said this is a good thing. If companies wait until they have a massive leap in performance, it might shock and scare people, causing an AI backlash. Another thing to note: Benchmarks are somewhat meaningless because the AI models have learned how to ace those tests.

There’s only one benchmark that I think really signifies a leap in capability: Whether you’d rely on the model to handle something really important in your life. For instance, would you trust it to do your taxes and file them to the IRS? Until then, all these new models represent incremental improvements in the technology that wowed us a couple of years ago.

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Mixed Signals

In the latest episode of Mixed Signals from Semafor Media, presented by Think With Google, Ben, Nayeema, and Max report from Cannes, decoding the year ahead for the ad business amidst the panels and parties. While enjoying the Côte d’Azur, they discuss Washington’s move to ban TikTok and the company’s denial of what’s unfolding. Then, they weigh in on whether Will Lewis, CEO of The Washington Post, will survive the controversy over his alleged unethical methods.

Listen to this episode of Mixed Signals wherever you get your podcasts.


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Katyanna Quach

Bill Gates backs an AI wildcard

Bill Gates, who advised on Microsoft’s strategic partnership with OpenAI, is backing a wildcard in the race toward artificial general intelligence: Jeff Hawkins, co-inventor of the PalmPilot — a short-lived precursor to mobile phones — and a researcher who has spent decades studying the human brain to build better machines.

The Gates Foundation has awarded $2.7 million to Hawkins’ 19-year-old firm, Numenta, which earns revenue by partnering with Intel and others to sell machine-learning services to businesses and also conducts AI research, to put his thesis to the test. Based on the belief that the secret to developing the ultimate AI algorithm may lie in understanding the human brain, Numenta will use the funds to develop software that reflects his concept, and plans to release the code through its Thousand Brains Project. In 2021, Gates reviewed Hawkins’ book on the topic.

“The Gates Foundation approached us because they were also interested in the theory, and they felt that current AI systems have limitations,” Hawkins told Semafor in an interview. “They thought that sensorimotor-type AI systems would be very, very helpful for global health issues.”

In his theory, AI should behave like the neocortex, which is the part of the brain that is responsible for a person’s ability to think, act, and speak, processing inputs from sensors and movement to learn. Hawkins believes that will produce new breakthroughs that are needed to build truly intelligent machines.

“I think it’s always been the right time to build brain-based AI,” he said. “If I could have done it 40 years ago, or 20 years ago, I would have. But I didn’t know how back then. Now I do.”

Patrick T. Power/Numenta

The human brain has long served as inspiration for artificial intelligence. Neural networks were inspired by the way the brain’s neurons communicate with one another, and adapt by strengthening and weakening synapses as they learn.

But over time, neural networks have begun to look less and less like the human brain, favoring sheer size and scope over the mysterious elegance and efficiency of their namesake.

That’s been the approach of large language models like the ones that power ChatGPT. They were built after researchers from Google developed transformers, an architecture that allows developers to build increasingly large neural networks, which work in part by breaking all language down into fragments of words known as “tokens.” By ingesting incredibly large amounts of text, the models predict the next token based not on true understanding, but on how tokens statistically relate to one another — a mechanism known as “attention.”

As transformer-based architectures get bigger, new capabilities tend to emerge and the large tech companies are spending tens of billions of dollars to build computers of sizes once incomprehensible. But some experts believe the brute-force approach of transformer models will eventually lose steam and the performance increases will plateau.

For instance, these companies have scraped most of the internet already and may exhaust sources of training data. And then there’s the problem of powering the data centers, equipped with hundreds of thousands of $50,000 graphics processors running so hot that they periodically melt. Big Tech is increasingly looking for wind, solar, geothermal, and nuclear energy to build more data centers. The human brain is much more intelligent, yet tiny and energy efficient.

“There’s pent up demand for something outside of transformers,” said Hawkins, whose ideas haven’t always been taken seriously by the tech industry at first. He may have predicted the rise of smartphones, but was never the best at building its applications. The PalmPilot was initially a success, but was quickly overtaken by mobile phones that could do more useful things.

He’s now ready to implement his theories into code and hopes that the new funding for the Thousand Brains Project will attract more researchers to move beyond LLMs.

“I feel like it’s a little bit like the beginning of the computing era with John von Neumann and Alan Turing, where they were understanding the basics of computing even though they had very, very few ideas about its application,” Hawkins said. “They couldn’t anticipate transistors, or cell phones, or GPS satellites or personal computers. But they knew they were building something super powerful – and that’s how I see what we’re doing.”

Katyanna’s view on whether Hawkins is on to something. →

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Semafor Stat

The amount Elon Musk predicts Tesla will be worth when it comes out with its humanoid robots. (The entire S&P is worth $45.5 trillion.) On one hand, building a Jetsons-like robot servant would be revolutionary. On the other hand, it might be impossible. But then again, so was making rocket launches affordable, electric cars cool, brain implants real and satellite internet a “thing.”

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Quotable
“The fish that got away was big.”

— SoftBank founder Masayoshi Son on selling the firm’s nearly 5% stake in Nvidia in 2019. It netted SoftBank about $3.3 billion; it could now be worth $160 billion, according to The Wall Street Journal.

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What We’re Tracking
Mike Segar/Reuters

The US Securities and Exchange Commission is coming for AI washing, where companies exaggerate or skew their use of the technology to investors. Since the spring, the agency has brought several enforcement cases, including accusing the founder of recruiting platform Joonko, which has shut down, of defrauding investors of $21 million by falsely claiming its AI helped companies find diverse job candidates. Legal experts told Bloomberg the SEC’s actions look similar to the start of its crackdown on the crypto industry, which should serve as a warning to companies overhyping their AI offerings.

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