Gm. Another weekend, another party full of conversations about AI. π

POLLS

41+ βEach 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...β You and my fiancΓ©e would be best friends.
6-10 βBesides sneakers, formal shoes, and Crocs why would I need more shoes? It's not that I have more than 2 feet.β I need to buy some Crocs!
11-20 βThis just made me realize I need to get rid of some shoes πβ You are very welcome. Spring cleaning is here.
41+ βroughly 300β. Thatβs 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 itβs a myth but tbh sounds like the dream.
11-20 βNeed more dunks and AF1sβ Facts, you can never have enough AF1s.
41+ βDear Nike, take my money. That is all!β Siri, play Nikes on My Feet.
π AI
OpenAIβs Regulatory Troubles

If youβre reading this newsletter, chances are that chatGPT has become the robot assistant youβve 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 Europeβs adherence to the General Data Protection Regulation (GDPR), one of the worldβs strongest data privacy laws.
It was ChatGPTβs 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 regulatorsβ concerns really boil down to how ChatGPT uses peopleβs 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 isnβt 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 Europeβs 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 customersβ API data.
Theyβve got a long way to go to get the regulators off their backs for good, but itβs 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 donβt infringe on our privacy. What a world thatβd be.
π AI
βWe have no moatβ - Google

In a leaked document from inside Google, a researcher was quoted saying βWe have no moat, and neither does OpenAI.β
A moat is a competitive advantage β like a moat around a castle. And if an employees says his or her company has no moat, well thatβs pretty bad. And if an employee says even their competitor doesnβt have a moat, thatβs even worse. So who has the moat?
βThe uncomfortable truth is, we arenβt positioned to win this arms race and neither is OpenAI. While weβve been squabbling, a third faction has been quietly eating our lunch. Iβm talking, of course, about open source. Plainly put, they are lapping us.β
The researcher then gave a list of βmajor open problemsβ that the open-source AI community is solving:
LLMs on a Phone: People are running foundation models on a Pixel 6 at 5 tokens / sec.
Scalable Personal AI: You can fine-tune a personalized AI on your laptop in an evening.
Multimodality: The current multimodal ScienceQA SOTA was trained in an hour.
βOpen-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.β
Implications according to the researcher include:
βWe have no secret sauce.β The researcher believes Googleβs best bet is to learn from and collaborate with people outside of Google.
βPeople will not pay for a restricted model when free, unrestricted alternatives are comparable in quality.β The researcher believes they need to consider where their value really is.
βGiant models are slowing us down.β The researcher believes the best models are the ones that can be iterated upon quickly.
Well, if youβre at Google or OpenAI, this may be slightly terrifying.
Why should I care? Itβs a good time to be an open-source dev. The researcher says βwe need them more than they need us.β The alpha may no longer be coming from Google and OpenAI, but from the builders on the outside.

πββοΈ QUICKIES
What else is going on?
TikTok kept track of people who watched gay content.
Joe Biden isnβt allowed to join the cool kids on Bluesky.
We now know whatβs inside the moon. And itβs not cheese!
AI is really freaking good at designing mRNA vaccines.
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)
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