The week's developments in investing & technology, explained | 16.08.24

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Could a law designed to prevent AI disasters end up causing one instead?

With its aim of protecting humanity from potential AI catastrophe, California's controversial SB 1047 bill is set to confront its final hurdle on August 15, setting the stage for a heated debate that could reshape the global AI landscape — for better or worse.

Source: Getty Images/Edited

That's the controversy surrounding California's SB 1047, a bill aimed at safeguarding humanity from potential AI catastrophes that has Silicon Valley up in arms. 

The fallout has been intense, with tech giants, startups, and even AI "godfathers" taking sides in a debate that could reshape the future of AI development.

Senator Scott Wiener, the bill's author, isn't backing down, calling it an attempt to "get out ahead" of potential AI harms:

• The bill would apply to models costing over $100 million to train

• It requires safety protocols, including an "emergency stop" button

• Companies could face penalties up to $30 million for violations

  
  

It's not just Silicon Valley feeling the heat: The bill has exposed deep divisions in the AI community, pitting "AI doomers" concerned about existential risks against those who fear overregulation will stifle innovation.

Now read the rest of the CogX Newsletter

Chart of the week

Startups are taking longer to secure follow-on funding?  PitchBook data shows the average time between funding rounds stretched to 19 months in Q2, compared to a quicker 15 months during the peak of the VC boom.

How AI is transforming investing 

SoftBank backs AI despite market jitters: The tech giant saw a significant turnaround in its Vision Fund performance, with gains from companies like ByteDance and Coupang offsetting previous losses. Despite this SoftBank plans to invest $5 billion this year, focusing on logistics, robotics, and AI.

AI Chip startup Groq just secured $640 million in funding: This boost will fuel their mission to challenge traditional AI chip giants like NVIDIA. Groq's chips are designed for speed and efficiency, and they're betting big on their cloud service to reach a wider developer audience.

OpenAI’s unlikely investment: The company led a $60m funding round for Opal, a webcam startup. This unexpected move suggests OpenAI's ambitions extend beyond software, potentially hinting at a future of AI-powered devices. 

AI Visionary Fei-Fei Li lands $1B+ valuation: Renowned AI expert Fei-Fei Li's startup, World Labs, has just secured a massive $100m investment, valuing the company at over $1 billion. Backed by tech giants like NEA and Andreessen Horowitz, World Labs is focused on developing AI models that can accurately understand and replicate the 3D world.

Startups

AI Safety Startup Haize Labs Lands $100M Valuation: Haize Labs, a young AI safety startup, just secured a hefty $100m valuation in a funding round led by General Catalyst. The company specialises in stress-testing AI models to identify and fix vulnerabilities before they become public threats.

China's AI industry is booming: The country saw a massive surge of over 237,000 new AI-related companies in just the first half of 2024, bringing the total to 1.67 million. This shows Beijing's push to become a global AI leader is clearly paying off.

 The OpenAI alumni building startups in Europe: From robotics to productivity tools, several ex-OpenAI employees have launched their own AI startups across the continent.

Jobs

• Finance Director | Absolute Recruitment LTD | London | £110-160k

• Finance Systems Manager - OneStream | SystemsAccountants | London | £100k

• Finance Director - Hotels | Vitae Financial Recruitment Limited | London | £115-125k

• Finance & Operations Director | CMA Recruitment | London | £100-100k

Noteworthy deals

• Outpace Bio, a Seattle-based startup developing a treatment for solid tumours using AI has raised a $144m Series B led by RA Capital Management.

  
  

• Morpho, a Paris-based crypto company developing software for borrowing digital assets has raised $50m in funding led by Ribbit Capital.

  
  

• Healx, a UK-based AI-driven drug discovery biotech startup, has raised $47m in Series C funding led by R42 Group and Atomico.

  
  

• EliseAI, a US-based company developing AI-powered tools to help landlords deal with tenants, has raised a $75m Series D round led by Sapphire Ventures.

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Disclaimer: This content is for informational and educational purposes only. It does not constitute financial, investment, legal or tax advice.