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OpenAI CEO Sam Altman (Jason Redmond/AFP via Getty Images)
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AI used to transcribe medical visits is having wild and sometimes spooky “hallucinations”

The OpenAI tool sometimes adds made-up, unsettling details.

Jon Keegan

“ChatGPT can make mistakes. Check important info,” reads a warning at the bottom of OpenAI’s ChatGPT 4o chat interface.

That message is there because many of today’s AI tools are prone to “hallucinations,” where incorrect or “imagined” facts are included in a response to the user.

That may not matter much if it invents an extra ingredient for the chocolate-chip cookie recipe you asked for (even if it recommends adding glue to your pizza), but if you’re using an AI tool to help with more critical tasks — such as transcribing medical interviews — the results could be disastrous.

A new investigation by the AP found that OpenAI’s Whisper text-transcription tool is being widely used for medical transcription, despite the fact that it’s been found to hallucinate “racial commentary, violent rhetoric, and even imagined medical treatments,” according to the report. And considering how many medical professionals are using the tool, researchers found a troubling rate of hallucinations.

The problems persist even in well-recorded, short audio samples. A recent study by computer scientists uncovered 187 hallucinations in more than 13,000 clear audio snippets they examined.

That trend would lead to tens of thousands of faulty transcriptions over millions of recordings, researchers said.

OpenAI warns against using Whisper in “high-risk domains,” but that has not stopped its use in healthcare software like Nabla, which has been used to transcribe an estimated 7 million medical visits, according to the report, which included the following example:

A speaker said, “He, the boy, was going to, I’m not sure exactly, take the umbrella.”

But the transcription software added: “He took a big piece of a cross, a teeny, small piece ... I’m sure he didn’t have a terror knife so he killed a number of people.”

Adding to the problem is that Nabla deletes the original recordings of the interviews for “data safety reasons,” leaving no mechanism for verifying the transcriptions.

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WSJ: Amazon considering $50 billion investment in OpenAI

What a difference half a day makes. Earlier today, The Information reported that Amazon was considering investing roughly $10-$20 billion in OpenAI as part of a $60 billion funding round alongside Nvidia and Microsoft. Now the Wall Street Journal is reporting the ecommerce giant could invest up to $50 billion in the ChatGPT maker as part of a larger, $100 billion funding round. The Financial Times also earlier reported today a $100 billion funding round but with smaller amounts from Nvidia, Microsoft and Amazon.

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Elon Musk’s SpaceX reportedly in talks to merge with xAI

Tesla CEO Elon Musk is reportedly exploring a merger between SpaceX and his artificial intelligence startup xAI, a move that would bundle rockets, satellites, the social media site X, and AI under one company ahead of SpaceX’s long-anticipated IPO.

According to Reuters reporting, the deal would swap xAI shares for SpaceX stock, potentially valuing the combined operation north of $1 trillion.

Reuters reports:

Two entities have been set up in Nevada to facilitate the transaction, the person said.

Reuters could not determine the value of the deal, its ‌primary rationale, or its potential timing.

Corporate filings in Nevada show that those entities were set up on January 21. One of them, a limited liability company, lists SpaceX ​and Bret Johnsen, the company's chief financial officer, as managing members, while the other lists Johnsen as the company's only officer, the filings show.

The combined companies could also set the narrative groundwork for putting data centers in space — an idea that Musk and a number of other tech billionaires have been floating lately but that may not get off the ground.

In its earnings filings yesterday, Tesla disclosed that it recently made a $2 billion investment in xAI. Last year Musk’s xAI bought Musk’s X in an all-stock deal.

Reuters reports:

Two entities have been set up in Nevada to facilitate the transaction, the person said.

Reuters could not determine the value of the deal, its ‌primary rationale, or its potential timing.

Corporate filings in Nevada show that those entities were set up on January 21. One of them, a limited liability company, lists SpaceX ​and Bret Johnsen, the company's chief financial officer, as managing members, while the other lists Johnsen as the company's only officer, the filings show.

The combined companies could also set the narrative groundwork for putting data centers in space — an idea that Musk and a number of other tech billionaires have been floating lately but that may not get off the ground.

In its earnings filings yesterday, Tesla disclosed that it recently made a $2 billion investment in xAI. Last year Musk’s xAI bought Musk’s X in an all-stock deal.

Microsoft CEO Satya Nadella

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Translating Nadella’s jargon to understand his strategy for meeting intense demand for AI computing.

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Driverless Waymo struck a child near school in California

A Google Waymo struck a child near a Santa Monica elementary school during morning drop-off last week, as self-driving cars by Waymo, Tesla, and others continue their expansion across the country. In a blog post, Waymo said the fully driverless car detected the child as they emerged from behind a parked SUV, braked sharply, and reduced speed from approximately 17 mph to under 6 mph before striking the child. The child suffered minor injuries and walked away.

The company reported the incident to the National Highway Traffic Safety Administration, which is currently investigating, adding fresh scrutiny to how robotaxis perform in the wild.

The company reported the incident to the National Highway Traffic Safety Administration, which is currently investigating, adding fresh scrutiny to how robotaxis perform in the wild.

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Digging into Microsoft’s cloud backlog

Microsoft’s Azure cloud computing unit is seeing huge demand. In yesterday’s second-quarter earnings call, Microsoft CFO Amy Hood said the company’s commercial bookings increased 230% thanks to large commitments from OpenAI and Anthropic and healthy demand for its Azure cloud computing platform.

Hood said that the company’s “remaining performance obligations” (RPO) ballooned to a staggering $625 billion, up 110% from the same period last year. How long will it take for Microsoft to fulfill these booked services? Hood said the weighted average duration was “approximately two and a half years,” but a quarter of that will be recognized in revenue in the next 12 months.

Shares of Microsoft tanked today, down over 11%, despite the strong beat on revenue and earnings. The drop puts the stock on track to have its worst single-day drop since March of 2020.

Investors may be concerned that while huge, that extra demand was coming only from OpenAI, an issue that Oracle recently experienced.

But Hood said the non-OpenAI RPO still grew 28% year on year, which reflects “ongoing broad customer demand across the portfolio.”

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