Stability CEO accused of swindling cofounder out of $150M stake. Musk unveils xAI venture amid Twitter turmoil. AI vs. Shoplifters: Do facial scans cross the line?
GM, and happy Sunday! Welcome back to this weekend’s AI newsletter.
Are ya ready, kids?
Here’s what we’ve got for ya today:
Musk unveils AI venture amid Twitter turmoil
AI vs. Shoplifters: Do facial scans cross the line?
Stability CEO accused of swindling cofounder out of $150M stake
"Criminal" Or Compromise? Cusack rips studios' AI plans
AI News: The Headliners 🏁
1/ Musk unveils AI venture amid Twitter turmoil
[The News] Well, butter my biscuits - Elon Musk is at it again.
The Twitter chief announced on July 15th his latest brainchild, an AI company called xAI. This comes after months of big talk about building a mega-bot to take down ChatGPT.
[The AI] xAI strutted out its 12-person posse led by Elon himself, with its website stating its cosmic mission to "understand the true nature of the universe."
Musk was an early investor of ChatGPT legend OpenAI but later threw shade for its "woke" biases.
In return, he announced in April his plans to create an all-knowing "TruthGPT."
[Why This Matters] Musk's new AI play comes amid trouble in paradise over at Twitter, which he acquired in his big $44B gamble back in Oct 2022.
Not only that, Threads, the Instagram version of Twitter, swooped in with 100 million signups lickety-split as Twitter's numbers dropped like flies.
Some folks feel alienated by Musk's slashing jobs and tweeting tirades, leaving Twitter's future more uncertain than a Kansas weather forecast.
Looking Forward... Details are fuzzy about xAI beyond the cosmic rhetoric.
But Musk has built an empire on big ideas, so xAI will likely grab headlines despite questions about his Twitter takeover.
With AI competition heating up, he may have bitten off more than he can chew.
But knowing Elon, he won’t give up without a fight.
2/ AI vs. Shoplifters: Do facial scans cross the line?
[The News] According to CNN, British retailers like grocery stores and pharmacies are increasingly using facial recognition technology from the firm Facewatch to identify repeat shoplifters.
Facewatch founder Simon Gordon says demand has grown "exponentially" amid rising retail crime.
[The AI] Facewatch's AI-powered system uses security cameras to scan every customer's face.
If a known shoplifter is detected, the store manager gets an alert to monitor or remove them. Facewatch staff verify the match before sharing data on offenders stealing over £100 with nearby retailers.
[Why This Matters] Shoplifting has nearly doubled in the UK recently as the cost of living surges.
But privacy advocates argue this is intrusive surveillance that can mistakenly flag innocent people as criminals.
Sure…Facewatch claims 99.85% accuracy, but admits occasional errors.
Critics say it's biased and lumps petty thieves with dangerous offenders.
Looking Forward...Facial recognition is spreading globally, despite bans in some public spaces.
As retail crime rises but budgets shrink, more stores seem willing to embrace AI. But unease persists around normalizing biometric tracking for minor offenses.
Can technology balance privacy, bias, and crime prevention? The debate continues.
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AI News: The Shorts 🩳
3/ Stability CEO accused of swindling cofounder out of $150M stake
[The News] Stability AI, the red-hot startup behind viral AI art generator Stable Diffusion, just got hit with a lawsuit from co-founder Cyrus Hodes alleging fraud and embezzlement by CEO Emad Mostaque.
This marks the second lawsuit brought by an alleged co-founder against the company.
[The Suit] Hodes claims Mostaque duped him into selling his 15% stake for just $100 in 2021, only for it to be worth $150 million after Stability's $100M funding at a $1B valuation months later.
Hodes says Mostaque hid key details about fundraising and product pivots. Mostaque also allegedly destroyed evidence by "deleting" WhatsApp messages.
[Why This Matters] The suit portrays stark power dynamics, with Hodes selling his stake cheaply right before Stability's valuation skyrocketed.
It also alleges Mostaque used investor money for swanky apartments and school fees, though he denies wrongdoing. With big money flowing into generative AI startups, disputes over stakes and funding are erupting.
Looking Forward...The drama casts shade on Stability as it rides the AI hype wave.
Lawsuits can be startup politics, but these serious allegations may preview compliance struggles as investors pump billions into emerging generative AI firms. Ethics and governance face growing pains in AI's wild west.
4/ "Criminal" Or Compromise? Cusack rips studios' AI plans
[The News] Hollywood's getting hotter than a jalapeño popper, folks.
Actor John Cusack is blasting studios as "criminal" for shady AI plans to copy extras forever. Now SAG-AFTRA is striking over this and more.
[The AI Issue] Studios want to use AI to scan and steal extras' faces for endless reuse.
Cusack says they'll come for actors next in this "identity theft" scheme, tweeting "Do you think they will stop with extras? That’s what AI is—a giant Copywrite identity theft and criminal enterprise."
Fans also worry after AI "stole" Marvel artists' jobs on the new show Secret Invasion.
[Why This Matters] AI ethics are colliding with studio profits. SAG-AFTRA plans to strike over AI concerns and more. Writers are already on the picket lines. It's the first dual strike since the 1960s as Hollywood evolves.
Looking Ahead... Can Hollywood strike a balance between tech disruption and workers' rights?
With productions halted, slim hopes for compromise may preview an extended battle.
Your AI News Break 🥳
AI News Tid Bits…
👉🏻 Volkswagen utilizes artificial intelligence to resurrect a great Brazilian singer for an advertisement. While some are overjoyed, others are worried.
👉🏻 Black Eyed Peas’ will.i.am announces his AI app, FYI, that hopes to “serve creatives first” and help creatives in a wide array of tasks.
👉🏻 Odisha TV in India has created a news station, anchored by AI news anchor 'Lisa'. The goal is clear: To help newspeople eliminate repetitive work and increase creativity.
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That’s it for today!
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See you next Thursday 👋🏻
