⚙️ Google Engineer steals AI trade secrets for China

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Good morning. In a heartwarming tale of longevity and loyalty, a WWII vet who's made McDonald's his daily dining spot celebrated his 100th birthday last month right where you'd expect: in the golden arches' embrace. It's the kind of dedication that even the most sophisticated AI can't predict.

In today’s newsletter:

🥷 Revealed: Google Engineer's Alleged Theft of AI Trade Secrets for China Raises Alarming Questions on Global Tech Security and Intellectual Property

🔒️ Zama's groundbreaking homomorphic encryption tech attracts $73M, promising a new era of secure data processing

🤖 Turnitin begins layoffs following CEO's forecast of AI-driven workforce reduction

💡 AI2 Incubator's $200 million compute boost aims to accelerate AI startup development and innovation

❓️ Misc:

Meta’s plan for AI recommendations (link)

Is Gemini improving? (link)

📊 Funding:

Overjet raised $53.2M to enhance clinical care and administrative efficiency (link)

Taalas raised $50M for silicon AI technology (link)

💰Jobs in AI:

Senior AI Scientist: GE HealthCare · Seattle, WA · Hybrid · Full-time · Director (Apply here)

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Google Engineer Indicted for AI Trade Secret Theft

Trade Secrets Compromised

A Google engineer, Linwei Ding, has been indicted by a federal grand jury for the alleged theft of over 500 confidential files containing critical AI trade secrets, with accusations pointing toward his covert efforts to aid China-based companies. The stolen data primarily involves Google's tensor processing unit (TPU) chips and related AI processing technologies, which are vital for powering Google’s AI workloads and are offered through partner platforms. Watch it below ⤵️ 

International Espionage Concerns

This case emerges amid an intensifying global competition over AI technology, with US efforts to restrict China's access to advanced AI chips paralleling Chinese companies' pivot to local producers. The incident aligns with warnings from the Five Eyes intelligence alliance about potential intellectual property theft by Chinese entities, spotlighting the broader geopolitical tensions surrounding AI, quantum computing, and robotics innovations.

Legal Ramifications and Google's Response

Accused of siphoning the files to a personal account and attempting to obscure his actions, Ding now faces significant legal repercussions, including potential prison time and hefty fines if convicted. Google has publicly affirmed its commitment to safeguarding its intellectual property and expressed gratitude towards the FBI for their assistance, underscoring the serious implications of the breach.

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🔐 Zama Secures $73M to Pioneer Privacy-Enhancing Encryption Tech

Zama, a Paris-based startup specializing in homomorphic encryption technology, has raised $73 million in Series A funding, led by Multicoin Capital and Protocol Labs, valuing the company near $400 million. This funding, the largest for a homomorphic encryption company, will fuel R&D and expand the team to develop solutions for blockchain transactions and AI data exchange. Zama's open-source libraries on GitHub, used by 3,000 developers, aim to secure data while in use, addressing a crucial challenge in data privacy. Despite homomorphic encryption's complexity and current scalability issues, Zama's breakthroughs have opened potential applications in slow-moving transactions like blockchain, with the company already commercializing its technology and securing contracts worth over $50 million.

🤖 Turnitin Initiates Layoffs Amidst AI Efficiency Claims

Turnitin, a plagiarism detection company, confirmed a small number of layoffs earlier this year, which comes after CEO Chris Caren's prediction last year that AI advancements would allow the company to reduce its headcount by 20%. The layoffs involved around 15 employees, a figure significantly lower than the anticipated 20% reduction from Turnitin's workforce of over 900. Caren had highlighted the potential for AI to streamline operations, particularly in engineering, sales, and marketing roles, suggesting a shift towards hiring less traditionally educated staff. This move reflects a growing trend where companies leverage AI to increase efficiency and potentially replace human workers, as seen in other industries like Klarna's AI Assistant taking on the workload of 700 employees.

💡 AI2 Incubator Empowers Startups with $200M Compute Grant

The AI2 Incubator, originating from the Allen Institute for AI, has received a significant boost with $200 million in compute resources to support AI startups in their early stages. This funding addresses the critical need for computational power among startups for model training and development. Each startup within the AI2 Incubator's portfolio may access up to $1 million in dedicated AI compute resources facilitated by an unnamed partner with substantial data center capacity. This initiative is designed to accelerate startups toward revenue generation by providing substantial computational support, including dedicated machines and custom silicon, a rare offering that surpasses typical cloud credit solutions. The AI2 Incubator, independent since 2022, has a history of fostering over 30 startups and continues to drive innovation in the AI sector with its $30 million fund established last year.

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