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Jon Keegan

Anthropic researchers crack open the black box of how LLMs “think”

OK, first off — LLMs don’t think. They are clever systems that use probabilistic methods to parse language by mapping tokens to underlying concepts via weighted connections. Got it?

But exactly how a model goes from the user’s prompt to “reasoning” a solution is the subject of great speculation.

Models are trained, not programmed, and there are definitely weird things happening inside these tools that humans didn’t build. As the industry struggles with AI safety and hallucinations, understanding this process is key to developing trustworthy technology.

Researchers at the AI startup Anthropic have devised a way to perform a “circuit trace” that allows them to dissect the pathways that a model chooses between concepts on its journey to devising an answer to the prompt it was given. Their paper sheds new light on this mysterious process, much like a real-time fMRI brain scan can show which parts of the human brain “light up” in response to different stimuli.

Some of the interesting findings:

  • Language appears to be independent from concepts — it’s trivial for the model to parse a query in one language and answer in another. The French “petit” and English “small” map to the same concept.

  • When “reasoning,” sometimes the model is just bullshitting you. Researchers found that sometimes the “chain of thought” that an end user sees does not actually reflect the processes at work inside the model.

  • Models have created novel ways to solve math problems. Watching exactly how the model solved simple math problems showed some weird techniques that humans have definitely never learned in school.

Anthropic made a helpful video that describes the research clearly:

Anthropic is working hard to catch up to industry leader OpenAI as it seeks to grow revenues to cover the expensive computing resources needed to offer its services. Amazon has invested $8 billion in the company, and Anthropic’s Claude model will be used to power parts of the AI-enhanced Alexa.

Models are trained, not programmed, and there are definitely weird things happening inside these tools that humans didn’t build. As the industry struggles with AI safety and hallucinations, understanding this process is key to developing trustworthy technology.

Researchers at the AI startup Anthropic have devised a way to perform a “circuit trace” that allows them to dissect the pathways that a model chooses between concepts on its journey to devising an answer to the prompt it was given. Their paper sheds new light on this mysterious process, much like a real-time fMRI brain scan can show which parts of the human brain “light up” in response to different stimuli.

Some of the interesting findings:

  • Language appears to be independent from concepts — it’s trivial for the model to parse a query in one language and answer in another. The French “petit” and English “small” map to the same concept.

  • When “reasoning,” sometimes the model is just bullshitting you. Researchers found that sometimes the “chain of thought” that an end user sees does not actually reflect the processes at work inside the model.

  • Models have created novel ways to solve math problems. Watching exactly how the model solved simple math problems showed some weird techniques that humans have definitely never learned in school.

Anthropic made a helpful video that describes the research clearly:

Anthropic is working hard to catch up to industry leader OpenAI as it seeks to grow revenues to cover the expensive computing resources needed to offer its services. Amazon has invested $8 billion in the company, and Anthropic’s Claude model will be used to power parts of the AI-enhanced Alexa.

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Anthropic projections for 2028: Up to $70 billion in revenue, could be profitable by 2027

Anthropic’s Claude API business is doing so well with enterprise customers, the company is upping its revenue forecasts significantly. According to a report from The Information, the company’s robust corporate sales have revised their most optimistic forecast up to $70 billion in sales by 2028.

Anthropic estimates their API business will be double that of OpenAI’s API sales. OpenAI is currently burning much more money per month than Anthropic, and reportedly expects to burn as much as $115 billion through 2029, while Anthropic is expecting that it could be cash positive by 2027 according to the report.

Anthropic estimates their API business will be double that of OpenAI’s API sales. OpenAI is currently burning much more money per month than Anthropic, and reportedly expects to burn as much as $115 billion through 2029, while Anthropic is expecting that it could be cash positive by 2027 according to the report.

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Amazon, which is developing AI shopping agents, doesn’t want Perplexity’s AI shopping agents on its site

Amazon has sent a cease-and-desist letter to Perplexity AI, demanding that it stop letting its AI browser agent, Comet, make online purchases for users, Bloomberg reports.

Amazon, which is developing its own AI shopping agents and is having “conversations” with builders of third-party agents, accused the AI startup of “committing computer fraud by failing to disclose when its AI agent is shopping on a user’s behalf, in violation of Amazon’s terms of service.”

Perplexity, in response, said Amazon is attempting to “eliminate user rights” in order to sell more ads.

Amazon, which is developing its own AI shopping agents and is having “conversations” with builders of third-party agents, accused the AI startup of “committing computer fraud by failing to disclose when its AI agent is shopping on a user’s behalf, in violation of Amazon’s terms of service.”

Perplexity, in response, said Amazon is attempting to “eliminate user rights” in order to sell more ads.

tech

Apple to challenge Google Chromebooks with low-cost Mac laptop, Bloomberg reports

Apple is designing a new sub-$1,000 Mac laptop aimed at the education market, Bloomberg reports.

Google’s low cost Chromebooks currently dominate the K-12 education market, and Apple’s re-entry into the education market which it once owned could disrupt the sector's status quo.

According to the report, Apple plans on using the custom mobile chips it currently use in iPhones to power the more-affordable devices.

Apple’s recent earnings demonstrated that iPhone sales have been steady, and te tech giant is looking to find new areas of growth, like services. A low-cost Mac could be popular with consumers, in addition to education buyers.

According to the report, Apple plans on using the custom mobile chips it currently use in iPhones to power the more-affordable devices.

Apple’s recent earnings demonstrated that iPhone sales have been steady, and te tech giant is looking to find new areas of growth, like services. A low-cost Mac could be popular with consumers, in addition to education buyers.

tech

Getty Images suffers partial defeat in UK lawsuit against Stability AI

Stability AI, the creator of image generation tool Stable Diffusion, largely defended itself from a copyright violation lawsuit filed by Getty Images, which alleged the company illegally trained its AI models on Getty’s image library.

Lacking strong enough evidence, Getty dropped the part of the case alleging illegal training mid-trial, according to Reuters reporting.

Responding to the decision, Getty said in a press release:

“Today’s ruling confirms that Stable Diffusion’s inclusion of Getty Images’ trademarks in AI‑generated outputs infringed those trademarks. ... The ruling delivered another key finding; that, wherever the training and development did take place, Getty Images’ copyright‑protected works were used to train Stable Diffusion.”

Stability AI still faces a lawsuit from Getty in US courts, which remains ongoing.

A number of high-profile copyright cases are still working their way through the courts, as copyright holders seek to win strong protections for their works that were used to train AI models from a number of Big Tech companies.

Responding to the decision, Getty said in a press release:

“Today’s ruling confirms that Stable Diffusion’s inclusion of Getty Images’ trademarks in AI‑generated outputs infringed those trademarks. ... The ruling delivered another key finding; that, wherever the training and development did take place, Getty Images’ copyright‑protected works were used to train Stable Diffusion.”

Stability AI still faces a lawsuit from Getty in US courts, which remains ongoing.

A number of high-profile copyright cases are still working their way through the courts, as copyright holders seek to win strong protections for their works that were used to train AI models from a number of Big Tech companies.

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