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In today’s edition, we bring you highlights from our event featuring speakers from the East and West͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
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December 8, 2023
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Technology

Technology
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Reed Albergotti
Reed Albergotti

Hi, and welcome back to Semafor Tech.

Yesterday, Semafor hosted an event on Finding Common Ground on AI. It was an experiment in bringing Silicon Valley and Washington, D.C. together for a wide-ranging conversation about the technology. We’d like to thank everyone for making it a huge success, especially our events team that coordinated brilliantly between coasts and time zones.

We hear a lot about Silicon Valley executives meeting D.C. lawmakers, but those conversations mostly happen behind closed doors. Our event was about bringing those chats out into the open, and we hope it’s just one of many to come.

What we saw is that there is more common ground on this issue than not. We had Kent Walker, president of global affairs at Alphabet and Google, dive deep on AI regulations that both promote safety but also competition from startups. Dr. Namandjé Bumpus, chief scientist of the U.S. Food and Drug Administration, discussed the promise of new clinical trials guided by AI. And Tom Wheeler, the former head of the U.S. Federal Communications Commission, who’s been advocating for AI regulation, pushed back on the “AI Doomer” argument that development of the technology needs to be paused.

Kristoffer Tripplaar

I’m hearing rumblings that AI is poised to be politicized or tribalized, as so many issues are these days. I hope it doesn’t, because Thursday’s talk showed that the conversations around AI can be constructive. Even Democratic Rep. Ted Lieu and Republican Rep. Jay Obernolte, who sit on opposite sides of the political aisle, seemed to come together on their views.

Before long, AI will intersect with basically every topic. More conversations to come.

Move Fast/Break Things

Reuters/Gonzalo Fuentes

➚ MOVE FAST: Synergies. Elon Musk is making the most out of his empire. He announced today that ChatGPT rival Grok, made by his xAI startup, is now available to X premium+ subscribers in the U.S. Other English-language users should get access in about a week. It’s part of his plan to make X a super app, whose data Grok can use to train on.

➘ BREAK THINGS: Dis-synergies. Partnerships aren’t in vogue in some parts of the world. Microsoft’s even closer relationship with OpenAI, which now includes an observer seat on the startup’s board, has caught the eye of the UK’s competition watchdog. Meanwhile, the UAE’s top AI firm G42 will get rid of Chinese hardware to address U.S. concerns.

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AI: A Bicoastal Exchange

Lieu says the AI industry can be divided into two big categories: Things Congress needs to regulate and things that fall outside its purview. The former includes self-driving cars and AI-powered nuclear weapons, while glitchy consumer gadgets are of less concern.

Lieu and Republican Rep. Jay Obernolte, who spoke together at the event, are among the handful of members of Congress who have technical expertise in AI. Both California lawmakers have made the technology a focus of their legislative agenda over the past year: Lieu is pushing Congress to rein in law enforcement’s use of facial recognition, while Obernolte is working on a long-anticipated national privacy law.

Walker was responding to a question about OpenAI’s board shakeup last month. Central to the drama was Microsoft’s reliance on the startup for its most capable AI models. Google has invested in OpenAI competitor Anthropic, but that’s a different situation, led by the company’s cloud division.

The contract requires much of the investment to come back in the form of cloud computing costs that Anthropic will spend with Google. That’s good for its cloud unit’s top line, but the real benefit is that training foundation models will help Google improve its in-house chips, called Tensor Processing Units.

It’s clear that Google DeepMind is going to power the company’s advanced AI products, which allowed Walker to gloat a bit. If this were the NFL, team Microsoft would put Walker’s quote up in the locker room.

Allen-Kyle was among several speakers at the event who encouraged caution when it comes to AI, given that algorithms have repeatedly been shown to be biased against people of color and women when it comes to criminal justice outcomes, accessing loans, and other areas. Dr. Namandjé Bumpus, chief scientist for the U.S. Food and Drug Administration, noted that while AI can help advance drug discovery, it can also amplify inadequate data that leads to shortfalls in treatment for certain people.

Anthony Aguirre, executive director of the Future of Life Institute, outlined an extreme scenario in which humans have allowed AI to decide whether to deploy nuclear weapons. His group organized a public letter earlier this year calling for a pause in AI research signed by Elon Musk and other tech luminaries. Aguirre said he stands by that view and has been heartened by the reaction from policymakers.

Himes’ remarks come amid a battle in Congress over how much lawmakers should restrict U.S. investment in China, with hawks calling for a sweeping approach beyond a recent White House executive order tackling the issue. Himes argues that AI ventures in China will get funded, with or without U.S. money, so being more involved through American investments that come with board seats and the like at startups there would actually be helpful instead of harmful.

His voice may be more in the minority, though Republican Congressman Patrick McHenry has similar thoughts. Himes is in the majority in railing against the slow-moving acquisition process at the Pentagon, which he says hurts American interests as AI plays a growing role in national security offense and defense. “Everything is software now, and none of these entities have moved into a world where they need to understand … that developing software is a radically different proposition than building a tank,” Himes said.

The transition to generative AI, happening across all industries, is going to lead to massive increases in data center energy usage. But it’s not all bad news. As Dr. Richmond noted, artificial intelligence is also helping to mitigate climate change. The technology can lead to new discoveries of materials that could be helpful in building better batteries, solar panels, and potentially even nuclear fusion. The Department of Energy is in the middle of all of those efforts.

Companies are racing to adopt AI, and Centoni says the effort is often being driven by CEOs and other top executives. But when Cisco recently surveyed 8,000 business leaders, only a small fraction said they felt fully ready to introduce AI-powered tools into their organizations.

That’s because many forms of practical AI software are only now entering the market, and it will take time for companies to figure out the most effective ways to incorporate them. Over the last year, OpenAI and other firms have demonstrated that general purpose large language models have tremendous potential, but it will be up to the rest of the tech industry to figure out how best to apply them.

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Semafor Stat

Amazon’s new commission rate on clothing items priced under $15, down from 17%. Apparel priced under $20 will be subject to a 10% fee. The changes are part of a broader overhaul the e-commerce giant is making to its seller-fee structure as it faces growing competition from Chinese shopping platforms like Shein and Temu.

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What We’re Tracking

Former OpenAI board member Helen Toner finally broke her silence on some of the drama at the startup, but didn’t provide specific details about why directors fired CEO Sam Altman, according to an interview with The Wall Street Journal. Citing multiple anonymous sources, the article said Altman tried to have her removed from OpenAI’s board and misled other directors in the process (a narrative that had been previously reported by other publications).

The animosity between Toner and Altman stemmed from a paper Toner wrote, in which she was critical of OpenAI’s record on AI safety and complimentary of its rival Anthropic. This is a particularly sore subject, given Anthropic was founded by a group of OpenAI employees who jumped ship.

Getty Images

Toner has deep ties with Anthropic and the effective altruism movement to which many Anthropic employees belong. She co-authored a paper in 2018 with Anthropic CEO Dario Amodei, and also spent three years working at Open Philanthropy, an effective altruism organization co-founded by Holden Karnofsky, whose sister co-founded Anthropic and is married to Amodei.

The article said Toner has distanced herself from effective altruism in recent years. “Like any group, the community has changed quite a lot since 2014, as have I,” she told the WSJ.

The more we know about OpenAI’s boardroom drama, the more it looks like a case of an unfortunate board structure, rather than some conspiracy or secret bombshell.

We still haven’t heard from the other two directors who fired Altman: Quora CEO Adam D’Angelo and Tasha McCauley. D’Angelo remains on the board while the other two left when Altman returned.

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