Thu. 02/06 – A $50 (!!) AI Model?

Feb 6, 2025 16m

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Now researchers say they have trained a cutting edge AI model for… checks notes… $50. Not $50 million dollars. $50. Dollars. Get ready for the superbowl of AI ads. Amazon has scheduled an Alexa AI event. And also, why does Amazon fail so hard when it comes to physical retail?

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AI-Generated Summary

The Revolutionary $50 AI Model

In a remarkable breakthrough, researchers from Stanford and the University of Washington have developed an AI reasoning model called S1 that can be trained for under $50. This model, distilled from Google's Gemini 2.0, achieved performance levels similar to more advanced models like OpenAI’s O1 and DeepSeq's R1. With a focus on affordability in AI development, this innovation raises significant questions about the future of AI commoditization and the competitive landscape for tech giants.

Google's Backpedal on Diversity Initiatives

Google has recently abandoned its hiring goals aimed at increasing representation from historically underrepresented groups, following pressure from recent changes in government policy. The tech giant has indicated a review of its diversity, equity, and inclusion (DEI) programs in response to an executive order from former President Trump. This shift has drawn parallels with other major tech companies like Meta and Amazon, who are also scaling back their DEI commitments amid political and public scrutiny.

AI's Super Bowl Spotlight

As AI technologies surge in popularity, OpenAI is set to make its much-anticipated television debut during Super Bowl 59. This year's Super Bowl is being dubbed the 'AI Super Bowl' as various companies in the sector ramp up their advertising spend, signaling a significant pivot toward marketing for AI products. The episode reflects on previous advertising trends, highlighting that while AI ads are increasing, some have also faced backlash from consumers.

Amazon's Alexa Generative AI Revamp

Amazon is preparing to unveil a new generative AI update for its Alexa assistant during an event on February 26. This upgrade promises substantial changes, including the ability for Alexa to hold multi-turn conversations and act as an agent on behalf of users, posing both opportunities and risks for the company as they aim to enhance user engagement.

Challenges in Amazon's Physical Retail Strategy

Amazon has scaled back on its Amazon Go store locations by about 50%, revealing challenges in successfully integrating its online retail prowess into physical storefronts. Despite innovations like their cashier-less technology, the company struggles to connect with customers in a traditional retail environment, leading to speculation about the overall viability of its physical retail strategy.

Legislative Moves Against Kids' Social Media Use

The Senate Commerce Committee has approved the Kids Off Social Media Act, aiming to ban children under 13 from accessing social media. While the bill pushes restrictions on social media use in schools, questions remain regarding the effectiveness of such measures to improve youth mental health.