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Jon Keegan

One thing AI is already taking over: the Nobel Prize

2024’s second AI-related Nobel Prize, this time for chemistry, was awarded to a group of scientists who solved one of the grand challenges of chemistry, predicting and designing the structure of proteins, by harnessing the power of artificial intelligence.

Splitting the prize, the Royal Swedish Academy of Sciences recognized the work of Demis Hassabis and John M. Jumper for developing AlphaFold2, an AI model which they used to predict the structure of virtually all 200 million known proteins, the building blocks of life.

Hassabis is the cofounder and CEO of Google DeepMind and Jumper is its director.

The prize committee said AlphaFold2 “has been used by more than two million people from 190 countries. Among a myriad of scientific applications, researchers can now better understand antibiotic resistance and create images of enzymes that can decompose plastic.”

The other half of the prize was awarded to University of Washington biochemist David Baker, for building computational tools used to create entirely novel proteins, which has long been a dream of researchers. Since creating the first new protein in 2003, “his research group has produced one imaginative protein creation after another, including proteins that can be used as pharmaceuticals, vaccines, nanomaterials and tiny sensors,” the award committee wrote.

As the field of AI explodes with new models and businesses rushing to convince the public that AI is the future of computing, these AI-related breakthroughs stand as noteworthy examples of the technology’s potential benefit to humanity.

Hassabis is the cofounder and CEO of Google DeepMind and Jumper is its director.

The prize committee said AlphaFold2 “has been used by more than two million people from 190 countries. Among a myriad of scientific applications, researchers can now better understand antibiotic resistance and create images of enzymes that can decompose plastic.”

The other half of the prize was awarded to University of Washington biochemist David Baker, for building computational tools used to create entirely novel proteins, which has long been a dream of researchers. Since creating the first new protein in 2003, “his research group has produced one imaginative protein creation after another, including proteins that can be used as pharmaceuticals, vaccines, nanomaterials and tiny sensors,” the award committee wrote.

As the field of AI explodes with new models and businesses rushing to convince the public that AI is the future of computing, these AI-related breakthroughs stand as noteworthy examples of the technology’s potential benefit to humanity.

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OpenAI is shipping everything. Anthropic is perfecting one thing.

The two AI titans are in a race to grow revenues, but they have very different strategies for releasing products. And one approach appears to be winning out.

73%

Here’s another sign Anthropic’s enterprise tools are killing it: The AI firm now captures 73% of all spending among companies buying AI tools for the first time, Axios reports, citing data from Ramp, a fintech company that provides corporate cards and expense management software. That’s up from 50% in January, when it was tied with OpenAI.

As we’ve noted, Big Tech is pivoting from experimentation to revenue — and enterprise is where that shift is playing out.

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Microsoft considers suing Amazon and OpenAI over $50 billion deal

Microsoft may be about to take its biggest AI partner to court, the Financial Times reports.

Microsoft, a longtime backer of OpenAI, is weighing legal action over the latter’s $50 billion deal with Amazon tied to its new Frontier AI product, arguing it could violate a key clause in their exclusive cloud deal requiring OpenAI’s models to run through Azure. Amazon and OpenAI say they’ve found a workaround. Microsoft executives disagree.

“We know our contract,” a source told the FT. “We will sue them if they breach it. If Amazon and OpenAI want to take a bet on the creativity of their contractual lawyers, I would back us, not them.”

OpenAI, which is eyeing an IPO this year and under pressure to generate more revenue, is trying to loosen Microsoft’s grip as it scales, while Microsoft increasingly sees OpenAI as both a partner and competitor.

“We know our contract,” a source told the FT. “We will sue them if they breach it. If Amazon and OpenAI want to take a bet on the creativity of their contractual lawyers, I would back us, not them.”

OpenAI, which is eyeing an IPO this year and under pressure to generate more revenue, is trying to loosen Microsoft’s grip as it scales, while Microsoft increasingly sees OpenAI as both a partner and competitor.

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Morgan Stanley says robotaxis could help Tesla sell more cars

Morgan Stanley analysts think Tesla’s robotaxi push could boost more than just a new business line — it could help sell more cars and software, too.

After visiting Giga Texas, analysts said they’re more optimistic about Tesla’s progress toward an unsupervised robotaxi rollout, with improvements in tricky pickup and drop-off scenarios where Tesla doesn’t have as much data from consumer usage. For now, the vast majority of its vehicles still have human supervisors in the front seat, but the analysts say the service is helping Tesla.

“Incremental unsupervised robotaxi miles driven improve the underlying autonomy model, which accelerates the path to personal unsupervised FSD [Full Self-Driving]. This, in turn supports higher FSD attach rates, improves auto demand, and cash flow generation.”

In other words, the more robotaxis drive, the better Tesla’s self-driving gets — and that could make its Full Self-Driving software more appealing and its cars easier to sell, in addition to improving its robotaxi service. Note that Tesla’s vehicle deliveries, which accounts for the lion’s share of the company’s revenue, have dropped two years in a row.

Morgan Stanley also sees a cost advantage. It estimates Tesla’s robotaxis could cost about $0.81 per mile to run today — cheaper than traditional ride-hailing and rival autonomous services — with costs falling further as purpose-built vehicles like the Cybercab scale.

Morgan Stanley maintained its equal-weight rating and $415 price target, about 4% above where the stock is currently trading.

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