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  • šŸ  "We have no moat" - Google

šŸ  "We have no moat" - Google

Oh yeah neither does OpenAI

Gm. Another weekend, another party full of conversations about AI. šŸ˜‚

POLLS

41+ ā€œEach episode of "Sex and the City" inspired me to a new pair of shoes. How many is many of Manolo Blahnik shoes? Kidding me. Never enough. It's quality what counts. And don't get me started on the Dolce & Gabbana shoes...ā€ You and my fiancĆ©e would be best friends.

6-10 ā€œBesides sneakers, formal shoes, and Crocs why would I need more shoes? It's not that I have more than 2 feet.ā€ I need to buy some Crocs!

11-20 ā€œThis just made me realize I need to get rid of some shoes šŸ™ƒā€ You are very welcome. Spring cleaning is here.

41+ ā€œroughly 300ā€. Thatā€™s almost 1 per day, which is honestly goals. I heard this story that Jay-Z wears a pair of brand new white Air Force Ones every single day and I think itā€™s a myth but tbh sounds like the dream.

11-20 ā€œNeed more dunks and AF1sā€ Facts, you can never have enough AF1s.

41+ ā€œDear Nike, take my money. That is all!ā€ Siri, play Nikes on My Feet.

šŸ  AI

OpenAIā€™s Regulatory Troubles

If youā€™re reading this newsletter, chances are that chatGPT has become the robot assistant youā€™ve always wanted.

Unfortunately, not everybody loves our favorite AI chatterbox. ChatGPT has persistently been in hot water with regulators, and that is true in no place more than Europe.

The GDPR

The issues for ChatGPT stem from Europeā€™s adherence to the General Data Protection Regulation (GDPR), one of the worldā€™s strongest data privacy laws.

It was ChatGPTā€™s alleged breaking of the GDPR that led to Italy giving it the boot, and although the app has since returned to the land of pizza and pasta, Germany, France, and Spain have since launched their own probes into OpenAI and ChatGPT.

A Variety Of Concerns

The regulatorsā€™ concerns really boil down to how ChatGPT uses peopleā€™s data. And, because ChatGPT is trained on an immense data set that most people have no idea they are even a part of, the app runs smack into the GDPR, as:

  • It requires companies to have explicit consent before collecting and using personal data.

  • It requires transparency over how data is used and stored, something OpenAI isnā€™t really doing.

  • It requires users to be able to demand that companies remove their data, something that might not even be possible in large language models.

  • It requires that all personal data must be accurate, a problem for the current hallucinating-prone chatbots.

  • It bans collecting data from those under 13, something that OpenAI does not currently monitor for.

Thankfully, it appears that OpenAI is aware of Europeā€™s data concerns, as they recently rolled out the ability to turn off your ChatGPT chat history (providing an opt-out of providing training data) and announced that it would stop training on its customersā€™ API data.

Theyā€™ve got a long way to go to get the regulators off their backs for good, but itā€™s a great start.

Why should I care? Data privacy laws may be annoying to the AI companies, but they are important to us consumers. If OpenAI and its peers are able to follow the regulations, then we will have AI tools that donā€™t infringe on our privacy. What a world thatā€™d be.

šŸ  AI

ā€œWe have no moatā€ - Google

In a leaked document from inside Google, a researcher was quoted saying ā€œWe have no moat, and neither does OpenAI.ā€

A moat is a competitive advantage ā€” like a moat around a castle. And if an employees says his or her company has no moat, well thatā€™s pretty bad. And if an employee says even their competitor doesnā€™t have a moat, thatā€™s even worse. So who has the moat?

ā€œThe uncomfortable truth is, we arenā€™t positioned to win this arms race and neither is OpenAI. While weā€™ve been squabbling, a third faction has been quietly eating our lunch. Iā€™m talking, of course, about open source. Plainly put, they are lapping us.ā€

The researcher then gave a list of ā€œmajor open problemsā€ that the open-source AI community is solving:

ā€œOpen-source models are faster, more customizable, more private, and pound-for-pound more capable. They are doing things with $100 and 13B params that we struggle with at $10M and 540B. And they are doing so in weeks, not months.ā€

Implications according to the researcher include:

  • ā€œWe have no secret sauce.ā€ The researcher believes Googleā€™s best bet is to learn from and collaborate with people outside of Google.

  • ā€œPeople will not pay for a restricted model when free, unrestricted alternatives are comparable in quality.ā€ The researcher believes they need to consider where their value really is.

  • ā€œGiant models are slowing us down.ā€ The researcher believes the best models are the ones that can be iterated upon quickly.

Well, if youā€™re at Google or OpenAI, this may be slightly terrifying.

Why should I care? Itā€™s a good time to be an open-source dev. The researcher says ā€œwe need them more than they need us.ā€ The alpha may no longer be coming from Google and OpenAI, but from the builders on the outside.

šŸƒā€ā™€ļø QUICKIES

What else is going on?

Stat: 18%: How much Coinbase beat revenue expectations by ($773M vs. $655M expected). Inject a crypto bull run into my veins.

Rabbit hole: Seismic Waves Of Gen Z Behavior (Digital Native)

šŸ¤©Ā MONDAY MOTIVATION

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