AI

It’s Over 175 Billion

Yesterday, Microsoft announced it will exclusively license OpenAI’s GPT-3. With 175 billion parameters, it’s considered the largest and most advanced language model ever created. 

While I don’t have a natural language processing (NLP) to-do list, Microsoft probably does. Here’s what could be on it, now that Microsoft has GPT-3 on speed dial: 

• Expand Azure cognitive services 
• Boost semantic search in Teams 
• Generate Word doc summaries 
• Advance Xbox in-game dialogue 

TL;DR: This partnership is a BFD for NLP. 

Acronyms and algorithms 

Let’s rewind: GPT-3 is a massive neural network that uses deep learning to generate human-like text… convincingly. Here’s a visual explainer.

• Since its June beta release—which came less than a year after Microsoft invested $1 billion in OpenAI—GPT-3 has made waves, from changing text style and tone to autocompleting images. 

OpenAI, founded initially as a nonprofit in 2015, has been struggling to juggle a noble mission and monetization since it added a capped profit arm last year. 

• In June, OpenAI began commercializing its research via a cloud service to help reach its ultimate goal: artificial general intelligence (AGI) to benefit humanity. 

MSFT + GPT-3 = ? 

Good news for startups building on GPT-3: The deal shouldn’t affect existing users’ access to the API, according to OpenAI, and “existing and future users of it will continue building applications...as usual.” 

• Alan Walton, CTO of entertainment software startup Latitude, told us yesterday was a “normal Tuesday” since his team already uses OpenAI’s Azure-hosted API. 
• Email automation startup Otherside AI doesn’t foresee any major changes, either—though co-founder Miles Feldstein told us he predicts Microsoft will use GPT-3 to build a tool that competes with their own. 

But, but, but: Some startups “will certainly have to adapt and meter their GPT-3 usage,” Jay Alammar, a machine learning instructor for Udacity, told us. Regardless, Microsoft will have exclusive access to GPT-3's underlying code, which should give it a leg up on all fronts. 

The competition: GPT-3 has a running start, but Amazon Web Services and Google Cloud Platform will likely announce competing NLP models—maybe within the year. 

• “The potential for massive language models is too unpredictable for the major clouds to leave completely to OpenAI,” Alammar told us.

AV

Self-Soul-Searching at Uber

SoftBank and Benchmark are encouraging Uber to rediscover its self...driving strategy, per Bloomberg. The two investors are Uber’s largest shareholders, so they have CEO Dara Khosrowshahi’s ear.

Last year, Khosrowshahi and co. turned Uber's Advanced Technologies Group into a subsidiary and raised a round of outside funding (like Waymo), giving the unit some breathing room. But ATG is still a skunkworks lab that burns through $500 million/year. And it’s lost key talent recently. Cue Uber investors, who have urged the company to: 

1. Raise more external capital for ATG 
2. Open-source ATG’s self-driving platform, so outside developers and mobility companies can build on top of it 

Some combination of (1) and (2) could theoretically help Uber unlock more value from its R&D without succumbing to the skunk cost fallacy.  

Bottom line: Uber has long pushed self-driving as its deus ex machina, but so far that's proven to be an illusion. As I’ve said before, the road to autonomous vehicles is paved with missed deadlines and moneybags. And there’s plenty of competition.

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EV

A Show about Teslas, by Teslas, for Teslas

Tesla held its shareholder meeting-Battery Day twofer yesterday. Elon Musk and other execs addressed a parking lot full of Teslas, which honked to applaud when their fearless leader said anything remotely exciting...including quips about materials science. 

The updates we’re here for: Tesla confirmed it’s designing its own batteries, which are larger and more streamlined than the electric Capri Suns it uses now. The company plans to wean itself off cobalt and build a new cathode plant to simplify battery production. 

• Tesla said the new cylindrical cells (dubbed “4680”) will have 5x more energy, 6x more power, and 16% more driving range. 
• Caveat: Wait for the follow-through. It will be at least three years before the new batteries reach full production. 

Bottom line: Vertical integration is the name of the game for Tesla, so it makes sense that batteries will eventually be pulled in-house. 

+ While we’re here: Tesla previewed its Plaid powertrain, a step up from Ludicrous mode. Musk also said he wants to release a $25,000 EV three years from now.

GIVEAWAY

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How it works: When you share Emerging Tech Brew today with your unique referral link, you’ll be entered in the raffle to win a Macbook Air. The more you share, the better chance you have (1 referral = 1 ticket). 

Where to begin: Click the share button below to grab your unique referral link. Tell your friends, family, and blockchain book clubs so they can read tech news they won’t get elsewhere.

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BITS & BYTES

Stat: Alphabet’s Sidewalk Labs introduced a new energy-efficient system, Mesa, that uses real-time data from work environments to automate cooling, heating, and plug loads—and could slash commercial electric bills by up to 20%. 

Quote: “We want to approach unionizing in a holistic sense. We're keen to work with other unions and gig workers whose lives are impacted by the decisions we make as engineers." —Lauren Gurley, a new member of United Tech and Allied Workers, the first major movement to unionize the U.K. tech industry. 

Vote: Yesterday was National Voter Registration Day—and although our current voting system is far from emerging tech, it’s vital to make your voice heard. Check out our new tool, Brew Votes, for everything you need to register or check your status.

WHAT ELSE IS BREWING

• Intel received a license to supply select products to Huawei. 
• The CIA launched CIA Labs, which will allow officers to file patents on, and make partial profits on, tech tools they develop. 
• Craig Wright must face a trial if he wants to prove he created Bitcoin (and take steps to claim an alleged $11 billion crypto fortune).
• Twitter added new cybersecurity rules for influential accounts ahead of the election.

TRIVIA

We’re not quite finished testing your AI knowledge. Today’s trivia touches on the tech’s applications across industries, from self-driving cars to healthcare and medicine. 

Take the quiz here.

ICYMI

Catch up on the top Emerging Tech Brew stories from the past few editions: 

• Unity goes public 
• Facebook’s VR/AR push
• SoftBank to sell Arm for $40 billion