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Daily Digest #345

Want to get in front of 100k AI enthusiasts? Work with us here^239†

Hello folks, here’s what we have today;

PICKS

1. OpenAI on track to hit $2bn annualized revenue.³⁰⁰ And OpenAI’s got the eyes on doubling this in 2025. Here’s a timeline of OpenAI’s revenue reports:

   • $28M in 2022. This was before it started charging for ChatGPT.

   • August 29th 2023 - $1B in annualized revenue. [source¹⁰³]

   • October 12th 2023 - $1.3B in annualized revenue. [source⁹⁰]

2. Nvidia, the big dog in AI chips, is branching out into custom chips.³⁶³ The chip market is getting crowded and Nvidia wants to keep the throne by making personalized chips for AI companies.🍿Our Summary⁹ (also below)

3. Also, we are doing some light testing on Gemini Advanced across different types of queries: Reading emails⁴²⁶, reasoning³²², complex search²⁸⁷ and general QnA²⁴⁰.

TOP TOOLS

• What’s that fish^691† - Click a picture, and cook a fish (or any other seafood).

• Reor⁹⁵⁵ - Self-organizing AI note-taking app that runs models locally.

• Globe Explorer⁶⁴⁷ - Visual-hierarchical search on any topic you want.

• OpenAI Batcher³⁹² - Run large OpenAI jobs while complying with rate limits.

• Synthical^402† - Discover, learn, and share science research, made easy with AI.

• LoudFame⁴²² - Stylize your video with creative AI filters.

• AI over your calendar³⁵² - 10 demos from HF0 Residency’s HackerBowl.

View more →²⁴¹

NEWS

• Teaching computers to speak³²⁷ - the prosody problem.

• How AI is transforming the business of advertising.⁶²⁵

• Walmart, Delta, Chevron and Starbucks are using AI to monitor employee messages³¹⁵ (anonymized though).

• Meet the pranksters behind Goody-2³¹⁴ - The chatbot that refuses to answer anything.

• Obviously ChatGPT³³² - How I got falsely accused of scientific fraud. (I expect more such cases—true and false)

• Google pledges €25M²⁴³ to boost AI skills in Europe.

• ASML shows off $380M machine³⁵⁰ - The 165-ton beast behind AI shift.

View more →¹¹²

QUICK BITES

Nvidia, the big dog in AI chips, is branching out into custom chips.³⁶³ The chip market is getting crowded and Nvidia wants to keep the throne by making personalized chips for AI companies.

What is going on here?

Nvidia is opening up new avenues beyond its traditional offerings of pre-designed chips.

What does this mean?

Nvidia holds a whopping 80% of the high-end AI chip market. Even beyond the stock tripling last year, Nvidia is 40% up YTD.

And still, it isn't resting. It is making a new team that’ll focus on making custom chips for AI companies. Its generalized chips (H100s, A100s etc.) do the job well but tech giants like Google, Microsoft and Amazon are shifting towards in-house chip development, aiming to cut costs and boost efficiency.

Reuters report that this team has met with folks at Amazon, Meta, Microsoft, Google and OpenAI to get them to bet on Nvidia for custom chips too instead of going all DIY.

Btw, this isn’t a new development. Nvidia’s CEO Jensen Huang has been wanting to get into offering custom chips since 2022. And this team is also talking to telecom, automotive and video game customers which total up to a $30B market. Dina McKinney¹²⁶ is likely to lead this team.

Sidenote: Google gets its TPUs made by Broadcom, a big custom chips player and reports last year⁷⁸ said that Google is thinking about ditching a significant chunk of the deal.

Why should I care?

As the demand for more specialized, energy-efficient chips grows, Nvidia's move to tailor-made chips and not just selling off-the-shelf solutions could boost the company even further.

To quote Anissa from The Information⁶⁵: Nvidia is arguably late to the custom chip field. Major cloud providers including Amazon and Microsoft have developed their own custom AI server chips, which they hope will lower their dependence on Nvidia. However, designing and continuously improving a chip that rivals Nvidia’s won’t be easy, so it is possible these customers could still want to work with Nvidia on custom chips.

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