In today’s newsletter:

• News - 🚀 Nvidia’s Scaling Challenge

• Culture - ✝️ "AI Jesus" Sparks Debate in Swiss Chapel Experiment

🚀 Nvidia’s Scaling Challenge

The AI industry's reliance on "scaling laws"—the idea that more data and bigger models yield smarter systems—is facing a reality check. Recent models from OpenAI, Google, and others show diminishing returns from pre-training alone, sparking debates about the limits of scaling. Nvidia, whose chips have fueled the AI explosion, argues that growing demand for inference—how AI models process individual queries—will keep its growth intact, but industry insiders suggest the focus is shifting from sheer size to smarter usage.

As Big Tech ramps up AI spending to over $300 billion next year, Nvidia’s future hinges on whether AI delivers tangible returns on these investments. The question now is whether AI's next breakthroughs will come from bigger models or new approaches, as companies like OpenAI pivot toward enhancing reasoning capabilities in systems like the o1 model. For now, the demand for AI chips remains high, but the race for meaningful applications could redefine the industry. 

🗞️ In Other News…

• The FTC banned Evolv Technology from making unsupported claims about its AI scanners after investigations revealed failures in reliably detecting weapons.

• AI could reduce the U.S. fiscal deficit by improving healthcare efficiency and access, though adoption faces regulatory, privacy, and incentive challenges.

• O2's AI granny, Daisy Harris, engages scammers in endless conversations to disrupt fraud, showcasing AI's potential to combat crime despite limited impact.

• AI can assist in estimating the time of death by analyzing a decomposing body, offering a more objective approach to what is typically a subjective process.

• The US plans to tighten chip sales restrictions to China, targeting specific companies while balancing security concerns with protecting domestic industry competitiveness.

✝️ "AI Jesus" Sparks Debate in Swiss Chapel Experiment

In a unique blend of faith and technology, a Swiss chapel hosted "AI Jesus," an avatar powered by GPT-4o, to engage visitors in meaningful discussions on morality, love, and spirituality. Over two months, 900 conversations revealed that participants took the experiment seriously, with many reporting a deep sense of reflection. Designed as an artistic project, the avatar was not a replacement for traditional confessions but aimed to explore AI's role in fostering spiritual dialogue.

While some praised its potential to connect people with faith, critics raised concerns about its authenticity and risks of diminishing true spirituality. The experiment stirred global interest, with theologians and researchers contemplating its future amid rising ethical debates around AI in religion. As "AI Jesus" concludes its first run, organizers consider how to refine and relaunch this thought-provoking initiative

VC Fundraising Rounds

• FiVerity, dedicated to creating solutions for cyber fraud detection in financial institutions, has raised $8.5M in its funding round. (11/27/2024)

• Wherobots, a spacial intelligence cloud, has raised $21.5M in Series A funding. (11/26/2024)

• Sirona Medical, a company that develops software solutions for healthcare providers that support patient care and clinical workflows, has raised $42M in Series C funding. (11/26/2024)

• Cradle, a biotech company that uses prediction algorithms and AI design recommendations to assist biologists in designing proteins, has raised $73M in Series B funding. (11/26/2024)

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