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Fisker loses customers' money, Robinhood launches a credit card, and Google generates travel itineraries | TechCrunch


Hey, folks, welcome to Week in Review (WiR), TechCrunch’s newsletter recapping the notable happenings in tech over the past few days.

This week, TC’s auto reporter Sean O’Kane revealed how EV startup Fisker temporarily lost track of millions of dollars in customer payments as it scaled up deliveries, leading to an internal audit that started in December and took months to complete.

Elsewhere, Lorenzo reported how Facebook snooped on users’ Snapchat traffic in a secret project known internally at Meta as “Project Ghostbusters.” According to court documents, the goal was to intercept and decrypt the network traffic between people using Snapchat’s app and its servers.

And Manish wrote about the resignation of Stability AI founder and CEO Emad Mostaque late last week. Mostaque’s departure from Stability AI — the startup known for its popular image generation tool Stable Diffusion — comes amid an ongoing struggle for stability (pun intended) at the company, which was reportedly spending ~$8 million a month as of October 2023 with little revenue to show for it.

Lots else happened. We recap it all in this edition of WiR — but first, a reminder to sign up to receive the WiR newsletter in your inbox every Saturday.

News

Fisker suspended: Fisker’s bad week continued with a halt in the startup’s stock trading. The New York Stock Exchange moved to take Fisker off the exchange, citing its “abnormally low” stock levels.

AI-powered itineraries: In an upgrade to its Search Generative Experience, Google has added the ability for users to ask Google Search to plan a travel itinerary. Using AI, Search will draw on ideas from websites around the web along with reviews, photos and other details.

Robinhood’s new card: Nine months after acquiring credit card startup X1 for $95 million, Robinhood on Wednesday announced the launch of its new Gold Card, powered by X1’s technology, with a list of features that could make Apple Card users envious.

At AT&T, mum’s the word: The personal information of some 73 million AT&T customers spilled online this week. But AT&T won’t say how — despite the hack responsible having happened over three years ago.

Funding

Booming Copilot: Copilot, the budgeting app, has raised $6 million in a Series A round led by Nico Wittenborn’s Adjacent. The app is benefiting partly from the death of Mint, Intuit’s financial management product.

Liquid assets: In a piece looking at the wider VC-backed beverage industry, Rebecca and Christine note canned water startup Liquid Death’s recent $67 million fundraise, which brought the company’s total raised to more than $267 million. Talk about liquidity.

HVAC venture: Dan Laufer, a former Nextdoor exec, has raised $25 million from Canvas Ventures and others for PipeDreams, a startup that acquires mom-and-pop HVAC and plumbing companies and scales them using its software that helps with scheduling and marketing.

Analysis

Is Nvidia the next AWS?: Ron writes about how there’s lots of parallels in Nvidia’s and AWS’ growth trajectories.

Podcasts

This week on Equity, the crew dug into Robinhood’s new credit card, Fisker’s latest woes and even Databricks’ new AI model that it spent $10 million to spin up. They also spotlit two companies building startups focused around kids, and, to wrap up, looked at a new $100 million fund that seeks to back innovative climate tech.

Meanwhile, on Found, Allison Wolff, the co-founder and CEO of Vibrant Planet, a cloud-based planning and monitoring tool for adaptive land management, discussed why the wildfires we’re seeing today are hotter and spreading more quickly than we can contain and how proper land management can help foster lower, slower-burning fires.

And on Chain Reaction, Jacquelyn interviewed Scott Dykstra, CTO and co-founder of Space and Time. Space and Time aims to be a verifiable compute layer for web3 that scales zero-knowledge proofs, a cryptographic action used to prove something about a piece of data without revealing the origin data itself.

Bonus round

Spotify tests online learning: In its ongoing efforts to get its 600 million+ users to spend more time and money on its platform, Spotify is spinning up a new line of content: e-learning. Beginning with a rollout in the U.K., the (traditionally audio) streaming platform is testing the waters for an online education offering of freemium video courses.


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Robotic Automations

This Week in AI: Let us not forget the humble data annotator | TechCrunch


Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world of machine learning, along with notable research and experiments we didn’t cover on their own.

This week in AI, I’d like to turn the spotlight on labeling and annotation startups — startups like Scale AI, which is reportedly in talks to raise new funds at a $13 billion valuation. Labeling and annotation platforms might not get the attention flashy new generative AI models like OpenAI’s Sora do. But they’re essential. Without them, modern AI models arguably wouldn’t exist.

The data on which many models train has to be labeled. Why? Labels, or tags, help the models understand and interpret data during the training process. For example, labels to train an image recognition model might take the form of markings around objects, “bounding boxes” or captions referring to each person, place or object depicted in an image.

The accuracy and quality of labels significantly impact the performance — and reliability — of the trained models. And annotation is a vast undertaking, requiring thousands to millions of labels for the larger and more sophisticated datasets in use.

So you’d think data annotators would be treated well, paid living wages and given the same benefits that the engineers building the models themselves enjoy. But often, the opposite is true — a product of the brutal working conditions that many annotation and labeling startups foster.

Companies with billions in the bank, like OpenAI, have relied on annotators in third-world countries paid only a few dollars per hour. Some of these annotators are exposed to highly disturbing content, like graphic imagery, yet aren’t given time off (as they’re usually contractors) or access to mental health resources.

An excellent piece in NY Mag peels back the curtain on Scale AI in particular, which recruits annotators in countries as far-flung as Nairobi and Kenya. Some of the tasks required by Scale AI take labelers multiple eight-hour workdays — no breaks — and pay as little as $10. And these workers are beholden to the whims of the platform. Annotators sometimes go long stretches without receiving work, or they’re unceremoniously booted off Scale AI — as happened to contractors in Thailand, Vietnam, Poland and Pakistan recently.

Some annotation and labeling platforms claim to provide “fair-trade” work. They’ve made it a central part of their branding in fact. But as MIT Tech Review’s Kate Kaye notes, there are no regulations, only weak industry standards for what ethical labeling work means — and companies’ own definitions vary widely.

So, what to do? Barring a massive technological breakthrough, the need to annotate and label data for AI training isn’t going away. We can hope that the platforms self-regulate, but the more realistic solution seems to be policymaking. That itself is a tricky prospect — but it’s the best shot we have, I’d argue, at changing things for the better. Or at least starting to.

Here are some other AI stories of note from the past few days:

  • OpenAI builds a voice cloner: OpenAI is previewing a new AI-powered tool it developed, Voice Engine, that enables users to clone a voice from a 15-second recording of someone speaking. But the company is choosing not to release it widely (yet), citing risks of misuse and abuse.
  • Amazon doubles down on Anthropic: Amazon has invested an additional $2.75 billion in the growing AI startup Anthropic, following through on the option it left open last September.
  • Google.org launches an accelerator: Google.org, Google’s charitable wing, is launching a new $20 million, six-month program to help fund nonprofits developing tech that leverages generative AI.
  • A new model architecture: AI startup AI21 Labs has released a generative AI model, Jamba, that employs a novel, new(ish) model architecture — state space models, or SSMs — to improve efficiency.
  • Databricks launches DBRX: In other model news, Databricks this week released DBRX, a generative AI model akin to OpenAI’s GPT series and Google’s Gemini. The company claims it achieves state-of-the-art results on a number of popular AI benchmarks, including several measuring reasoning.
  • Uber Eats and UK AI regulation: Natasha writes about how an Uber Eats courier’s fight against AI bias shows that justice under the U.K.’s AI regulations is hard won.
  • EU election security guidance: The European Union published draft election security guidelines Tuesday aimed at the around two dozen platforms regulated under the Digital Services Act, including guidelines pertaining to preventing content recommendation algorithms from spreading generative AI–based disinformation (aka political deepfakes).
  • Grok gets upgraded: X’s Grok chatbot will soon get an upgraded underlying model, Grok-1.5 — at the same time all Premium subscribers on X will gain access to Grok. (Grok was previously exclusive to X Premium+ customers.)
  • Adobe expands Firefly: This week, Adobe unveiled Firefly Services, a set of more than 20 new generative and creative APIs, tools and services. It also launched Custom Models, which allows businesses to fine-tune Firefly models based on their assets — a part of Adobe’s new GenStudio suite.

More machine learnings

How’s the weather? AI is increasingly able to tell you this. I noted a few efforts in hourly, weekly, and century-scale forecasting a few months ago, but like all things AI, the field is moving fast. The teams behind MetNet-3 and GraphCast have published a paper describing a new system called SEEDS ( Scalable Ensemble Envelope Diffusion Sampler).

Animation showing how more predictions create a more even distribution of weather predictions. Image Credits: Google

SEEDS uses diffusion to generate “ensembles” of plausible weather outcomes for an area based on the input (radar readings or orbital imagery perhaps) much faster than physics-based models. With bigger ensemble counts, they can cover more edge cases (like an event that only occurs in 1 out of 100 possible scenarios) and can be more confident about more likely situations.

Fujitsu is also hoping to better understand the natural world by applying AI image handling techniques to underwater imagery and lidar data collected by underwater autonomous vehicles. Improving the quality of the imagery will let other, less sophisticated processes (like 3D conversion) work better on the target data.

Image Credits: Fujitsu

The idea is to build a “digital twin” of waters that can help simulate and predict new developments. We’re a long way off from that, but you gotta start somewhere.

Over among the large language models (LLMs), researchers have found that they mimic intelligence by an even simpler-than-expected method: linear functions. Frankly, the math is beyond me (vector stuff in many dimensions) but this writeup at MIT makes it pretty clear that the recall mechanism of these models is pretty … basic.

Even though these models are really complicated, nonlinear functions that are trained on lots of data and are very hard to understand, there are sometimes really simple mechanisms working inside them. “This is one instance of that,” said co-lead author Evan Hernandez. If you’re more technically minded, check out the researchers’ paper here.

One way these models can fail is not understanding context or feedback. Even a really capable LLM might not “get it” if you tell it your name is pronounced a certain way, since they don’t actually know or understand anything. In cases where that might be important, like human-robot interactions, it could put people off if the robot acts that way.

Disney Research has been looking into automated character interactions for a long time, and this name pronunciation and reuse paper just showed up a little while back. It seems obvious, but extracting the phonemes when someone introduces themselves and encoding that rather than just the written name is a smart approach.

Image Credits: Disney Research

Lastly, as AI and search overlap more and more, it’s worth reassessing how these tools are used and whether there are any new risks presented by this unholy union. Safiya Umoja Noble has been an important voice in AI and search ethics for years, and her opinion is always enlightening. She did a nice interview with the UCLA news team about how her work has evolved and why we need to stay frosty when it comes to bias and bad habits in search.


Software Development in Sri Lanka

Robotic Automations

A CES 2024 preview, 23andMe victim blaming and MIT's obesity-fighting pill | TechCrunch


Welcome, folks, to Week in Review (WiR), TechCrunch’s regular newsletter that recaps the week in tech that was. Hope the holidays were restful for those who observed them. We at TC, for our parts, are gearing up for an eventful next week at CES in Las Vegas — while keeping an eye on the news cycle, as ever.

In this edition of WiR, we spotlight Brian’s CES 2024 preview, 23andMe blaming victims for its data breach, GitHub making Copilot Chat generally available and Frontdesk laying off its entire staff. Also on the agenda are spiders and body butter, Fidelity marking down X’s valuation, Meta cutting the price of the Quest 2 and MIT scientists’ vibrating obesity pill.

It’s a lot to get through, so we won’t delay. But first, a reminder to sign up here to receive WiR in your inbox every Saturday if you haven’t already done so.

Most read

CES 2024: Brian has a thorough roundup of what to expect at CES 2024, including — but not limited to — generative AI, robotics, TVs, cars, smartphones, and health tech. He writes that he’s optimistic about the show overall, particularly in light of the consumer electronics industry’s move to more decentralized manufacturing and the quality of startup pitches that’ve come in so far.

Your fault, not ours: Facing over 30 lawsuits from victims of a data breach implicating ~6.9 million customers, 23andMe is now deflecting blame to attempt to absolve itself of any responsibility. In a letter, the genetic testing company says that users “negligently recycled and failed to update their passwords following these past security incidents, which are unrelated to 23andMe.”

Copilot Chat launches: GitHub has rolled out Copilot Chat, a ChatGPT-like programming-centric chatbot, in general availability for all paying Copilot users and free for verified teachers, students and maintainers of certain open source projects. The chatbot’s powered by GPT-4, OpenAI’s flagship generative AI model, and fine-tuned specifically for dev scenarios.

Frontdesk implodes: Mary Ann writes that Frontdesk, a startup that managed more than 1,000 furnished apartments across the U.S., laid off its entire 200-person workforce Tuesday after attempts to raise more capital failed. Frontdesk CEO Jesse DePinto said that Frontdesk would be filing for a state receivership, an alternative to bankruptcy, according to TechCrunch’s sources.

Spiders and body butter: Sol de Janeiro’s Delícia Drench Body Butter went viral on social media after users claimed they were hunted, bitten and (unsuccessfully) courted by wolf spiders when they applied the moisturizer, thanks to the alleged inclusion of chemicals that spiders find sexually arousing. But Sol de Janeiro — and independent experts — tell TechCrunch that there’s no merit to the rumors.

X’s valuation falls . . . again: Mutual fund company Fidelity has marked down its investment in X Holdings, the parent company of X (formerly Twitter), by 71.5% from the original valuation of shares, reports Ivan. Fidelity spent $19.2 million to acquire a stake in X back in October 2022.

Quest 2 discounted: Months after Meta launched the Quest 3, the company is slashing prices for the VR headset’s predecessor, the Quest 2, by $50. The 128GB version drops from $299 to $249 and the 256GB version drops from $349 to $299 — with plenty of accessories on sale to boot.

Vibrating the fat away: Brian writes about an MIT team’s new obesity-fighting, pill-like vibrating capsule, which is designed to send signals to the brain to simulate the sensation of being full. Early tests are promising — giving animals the pill 20 minutes before eating reduced their consumption by around 40% — but the capsule is a long way from human trials.

Audio

In need of new podcasts to fill out your rotation? Don’t panic — TechCrunch has you covered.

On a throwback episode of Equity, Morgan interviewed Shruti Dwivedi — the co-founder and CEO of health tech startup Duly, which is focused on simplifying and personalizing contraception for young women in India and beyond — at TechCrunch Disrupt 2023. The pair talked about the stigma around contraception, cultural roadblocks Duly faces and what’s next for the startup.

Meanwhile, Found went Down Under with Rebecca, who spoke with Alex Zaccaria, the co-founder and CEO of Australia-based Linktree. The two chatted about how the startup scaled the freemium model to grow the now-massive social media reference landing page business.

And on Chain Reaction, Jacquelyn dove back into the latest developments on spot bitcoin ETF applications in the U.S. as anticipation builds. Fred Thiel, the CEO of Marathon Digital Holdings, a digital asset technology company and the largest publicly traded bitcoin mining firm, joined the episode to talk crypto shop.

TechCrunch+

TC+ subscribers get access to in-depth commentary, analysis and surveys — which you know if you’re already a subscriber. If you’re not, consider signing up. Here are a few highlights from this week:

Another alleged cool superconductor: Tim has the story on the latest team of scientists who claim to have discovered a near-room-temperature superconductor. He’s not convinced that the paper, which hasn’t been peer-reviewed, will stand up to scientific scrutiny; time will tell.

Crypto losses decline: While malicious actors continue to hack the crypto industry for a cash grab, the dollar amount is down substantially — 51% — compared to the previous year, Jacquelyn writes.

The coming copyright challenges: When news broke last year that AI heavyweight OpenAI and Axel Springer had reached a financial agreement and partnership, it seemed to bode well for harmony between folks who write words and tech companies that use them to help create and train AI models. But perhaps it doesn’t, Alex posits.


Software Development in Sri Lanka

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