In today’s newsletter:

• News - 🇨🇳 Alibaba, ByteDance & Meituan Poach AI Talent in Silicon Valley

• Culture - 📚 HarperCollins Asks Authors to License Books for AI

• Media - 🥤 Coca-Cola's AI Christmas Ad Sparks Major Backlash

🇨🇳 Alibaba, ByteDance & Meituan Poach AI Talent in Silicon Valley

Chinese tech giants, including Alibaba, ByteDance, and Meituan, are doubling down on Silicon Valley, aggressively hiring top US tech talent to bolster their AI capabilities. Despite US restrictions on exporting high-end Nvidia chips crucial for AI development, these companies are expanding their Californian offices, poaching talent from rivals like OpenAI and major US tech groups. For example, Alibaba is recruiting for roles tied to its AI-powered search engine, Accio, while ByteDance is enhancing TikTok’s AI features and developing its Doubao language model. Meanwhile, Meituan has launched a new generative AI team exploring features like menu translation and AI companions.

Even smaller Chinese AI startups are establishing US footprints, leveraging Silicon Valley's talent pool for their projects. Companies like Moonshot AI, co-founded by ex-Google Brain researcher Wu Yuxin, are working on cutting-edge multimodal AI models, while TikTok’s AI teams report to leaders in both California and Beijing. The push reflects China’s ambition to stay competitive in generative AI, even as Washington considers tightening regulations on cloud providers and data centers. However, these moves also highlight ongoing tensions as Chinese firms navigate restrictions and growing scrutiny in the US.

🗞️ In Other News…

• C3.ai’s stock surged 24% after announcing an expanded partnership with Microsoft, but the deal, in place since 2018, lacks concrete financial details, raising skepticism amid C3.ai's ongoing losses and Microsoft's dominant position.

• The Terminator predicted AI’s rise, but producer Gale Anne Hurd warns it could slash film industry jobs like VFX and set design by 2030.

• AI inference chips, designed for the efficient day-to-day operation of AI tools, are emerging as a cost-effective alternative to Nvidia’s GPUs, with startups and traditional chipmakers targeting broader markets and prioritizing energy efficiency.

• ANI, India's largest news agency, has sued OpenAI for allegedly using its content to train AI models and generating false information, marking the first Indian copyright lawsuit against the AI giant amid growing global scrutiny.

• Suno, an AI music generator facing lawsuits over copyrighted training data, has launched Suno V4 with advanced music and voice generation capabilities, expanded its market reach, and brought on former Snap executive Jack Brody as Chief Product Officer.

📚 HarperCollins Asks Authors to License Books for AI

HarperCollins has struck a deal with an unnamed AI tech company, allowing the use of select nonfiction backlist titles to train AI models, but only if authors opt in. This move comes as some authors sue companies like OpenAI over alleged copyright infringement for using their works without permission. HarperCollins claims the agreement safeguards authors’ rights while offering shared revenue and royalties, with one author, Daniel Kibblesmith, revealing he was offered $2,500 for licensing one of his books.

The publisher describes the deal as a way to embrace innovation while respecting the value of authors’ works, emphasizing that participation is entirely optional. With limited use and guardrails in place to protect rights, HarperCollins sees this as a win-win for authors interested in exploring new revenue streams. However, the broader implications of AI’s use of copyrighted material remain a hot topic in the publishing world.

🥤 Coca-Cola's AI Christmas Ad Sparks Major Backlash

Coca-Cola is under fire for an AI-generated Christmas ad that critics call “soulless” and dismissive of artists. The ad, created by three AI studios, mimics the brand’s classic 1995 “Holidays Are Coming” commercial but replaces human actors with AI visuals. Creatives slammed the use of AI, citing concerns over job replacement and uncredited work, while Coca-Cola defended it as a blend of AI and human storytelling.

The backlash reflects the clash between AI innovation and tradition. Unlike the company’s well-received AI-driven “Masterpiece” ad, critics argue Christmas—rooted in human connection—feels ill-suited for synthetic creativity. Despite resistance, brands see AI as a cost-effective tool for the future, signaling its growing role in marketing.

VC Fundraising Rounds

• Enfabrica, an AI networking chip startup, secured $115 million in Series C funding and unveiled its new ACF SuperNIC chip, designed to optimize networking infrastructure for seamless data flow in modern AI workloads. (11/19/24)

• Blip, a conversational platform, raised $60M in a Series C round to expand its AI-driven solutions that help businesses automate and personalize real-time interactions across multiple communication channels. (11/19/24)

• Citizen Health, an AI-driven consumer health platform based in San Mateo, CA, raised $14.5 million in Seed funding. (11/19/24)

• Moonvalley, a pioneer in imagination research and generative AI tools, announced it has raised $70 million in funding. (11/18/24)

• CommBox, an enterprise-grade omnichannel AI customer experience platform, announced securing $15 million in a growth investment round. (11/18/24)

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