🚀AI Updates Inside

Microsoft’s Q4 Earnings Report: AI Revenue and Investment in Focus

Microsoft (MSFT) is scheduled to release its fiscal Q4 earnings report on Tuesday, with investors keenly watching for signs that the company’s significant investments in AI are yielding returns.

Analysts expect Microsoft to report earnings per share (EPS) of $2.94 and revenue of $64.5 billion, a rise from the previous year's EPS of $2.69 and revenue of $56.2 billion.

Cloud revenue is anticipated to reach $36.8 billion, with Intelligent Cloud revenue, including Azure, projected at $28.7 billion.

Last quarter, AI services contributed 7 percentage points to Azure’s growth, up from 6 percentage points in Q2 and 3 in Q1.

This marks a significant increase from the 1 percentage point of AI-driven growth reported in Q4 of last year.

Microsoft’s earnings will follow Alphabet’s recent report, which indicated a rise in cloud revenue due to AI interest, though specific figures were not disclosed.

Analysts, including Wedbush’s Dan Ives and UBS Global Research’s Karl Keirstead, predict that Microsoft’s AI initiatives are accelerating cloud deal flow and gaining market share from competitors like Google and Amazon.

Investors are also looking for insights into Microsoft’s future AI spending, with capital expenditures at $14 billion in Q3.

Alphabet’s CFO noted similar spending patterns for AI, with Google’s expenditures rising to $13 billion. Amazon (AMZN) will report its earnings on August 1.

Meta Launches AI Studio for Custom Chatbots

Meta has unveiled AI Studio, a new tool allowing users to create custom AI chatbots with personalized traits and interests.

This feature, starting today for Instagram Business accounts and expanding to all US Meta users soon, enables creators to build virtual characters based on their own personalities or to develop virtual assistants for various purposes, such as role-playing or providing support.

AI Studio, accessible via Instagram, WhatsApp, Messenger, and the web, lets users tailor their chatbots by defining their personalities, setting response guidelines, and specifying content to share.

The tool is powered by Meta’s latest version of the Llama language model.

Meta hopes AI Studio will be a hit after previous AI chatbot experiments, which included celebrity-themed bots, fell short.

The company emphasizes that this new tool offers more control and customization, potentially improving user engagement.

Despite these advancements, Meta’s previous AI chatbot offerings, including those based on celebrities like Snoop Dogg and Kendall Jenner, did not achieve major success.

However, Meta’s new approach focuses on user-driven customization, aiming to provide more meaningful interactions.

Revolutionizing Weather Forecasts: AI's Role in Predicting Natural Disasters

Artificial intelligence is transforming weather forecasting by predicting global weather patterns with unprecedented speed and accuracy.

In July 2024, as Hurricane Beryl approached the Caribbean, an AI system named GraphCast, developed by DeepMind, forecasted landfall in Texas—while traditional models suggested Mexico.

GraphCast’s prediction proved accurate when Beryl struck Texas, showcasing the AI’s ability to deliver forecasts in minutes compared to the hours needed by conventional supercomputers.

AI systems like GraphCast excel in pattern recognition, analyzing vast amounts of data to generate forecasts quickly.

This technology has the potential to enhance both short-term weather predictions and long-term scientific discoveries.

It can even run on standard desktops, making advanced forecasting more accessible.

Despite these advancements, experts believe AI will complement rather than replace traditional supercomputing methods.

The combination of human expertise and AI tools aims to improve overall forecasting accuracy and responsiveness.

Apple Trains AI Models on Google Chips, Signaling Shift from Nvidia

Apple has revealed that its AI models, which power the new Apple Intelligence system, were pretrained using Google’s Tensor Processing Units (TPUs).

This move marks a notable departure from Nvidia’s GPUs, which have been the standard for high-end AI training but have faced supply constraints.

In a recently published technical paper, Apple detailed its use of Google’s TPUs, specifically the advanced TPU v4 and v5p chips, for training its Apple Foundation Model (AFM).

While Apple did not explicitly mention Google or Nvidia, it noted that its models were trained on “Cloud TPU clusters,” indicating use of Google’s cloud infrastructure.

This choice highlights a growing trend among Big Tech firms to explore alternatives to Nvidia’s GPUs.

Apple’s new AI system includes enhancements like an upgraded Siri, improved natural language processing, and new generative features.

Despite being a late entrant in the AI space compared to peers like Microsoft and Meta, Apple is now rapidly expanding its AI capabilities.

Elon Musk Shares AI-Generated Parody of Kamala Harris: Sparks Controversy on AI's Role in Politics

A recent video using AI to clone Vice President Kamala Harris's voice has ignited controversy.

Shared by Elon Musk on X, the video parodies Harris with a fabricated script, leading to concerns about AI's potential to mislead voters just months before the election.

While the video was labeled as parody by its creator, Mr Reagan, Musk's initial post lacked this context, raising issues about how AI-generated content is managed and regulated.

The lifelike AI voices and deepfakes used in the video exemplify the fine line between satire and misinformation, highlighting a significant gap in federal regulations on AI in politics.

Experts warn that such realistic AI manipulations could mislead the public, underscoring the need for clearer guidelines and more robust oversight in digital media and electoral campaigns.

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