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Microsoft emerges as ultimate winner in OpenAI power struggle, shares jump 1 percent

by Matt Marshall — venturebeat.com — In a masterful move exemplifying urgent and instinctive leadership, Microsoft CEO Satya Nadella, personally jumped into the chaos happening over the weekend at the leading generative AI company, OpenAI, and came out with as much as he possibly could have. Working for hours over the weekend, he negotiated a deal that brings Sam Altman, the ousted OpenAI CEO, over to head up a new subsidiary within Microsoft focused on AI innovation – a group that will also include Open AI co-founder Greg Brockman and other departing employees who supported Altman’s strategy.

On the face of it, this is a huge win for Microsoft, because it gets Altman’s growth DNA in the hottest area of tech: generative AI. Altman and Brockman represented the hard-charging, growth minded product side of OpenAI’s business. OpenAI was raising money at terms that value the company at between $80 and $90 billion, meaning Microsoft would have had to pay tens, if not hundreds, of billions of dollars to acquire OpenAI if it ever wanted to. Now, Microsoft is getting OpenAI’s main assets (its brains), and the OpenAI models will probably follow – all presumably at a massive discount. What a bargain, right? That’s what the stock market thought. Microsoft’s shares jumped by more than 1 percent on the opening of trading Monday morning, valuing the giant at a record $2.78 trillion. Well, let’s see. Until this morning, it looked like OpenAI would remain a functioning company, hell-bent on pursuing safe GenAI. That would have presented a stable picture, with Microsoft owning a meaningful stake in that company too.

But suddenly everything was in flux again as of Monday morning. The vast majority of remaining Open AI employees have reportedly supported a letter sent early this morning to that company’s board that they may quit unless the board resigns and reinstates Altman and Brockman. If the remaining board decides to resign, it’s possible that Altman and Brockman may return and lead OpenAI to even more aggressive growth than ever without the constraints of the safety-focused board. That could still be very good for Microsoft, given that it is the largest investor, and participates in any profits that OpenAI throws off. It’s also true that OpenAI’s strong growth and speed in the area of generative AI may create some tension with Microsoft, which is also seeking to be a leader in the area of enterprise generative AI. However, tension isn’t all that bad, and the existing partnership still gives Microsoft a lot of access to technology and know-how. This would certainly give Microsoft a leg-up in the competition against Amazon AWS and Google in providing powerful AI-infused cloud technology solutions to enterprise companies.

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Sam Altman’s Counter-Rebellion Leaves OpenAI Leadership Hanging in the Balance

Story by Berber Jin – wsj.com — SAN FRANCISCO—Two days after Sam Altman was ousted from OpenAI, he was back at the company’s office, trying to negotiate his return. The former chief executive officer entered with a guest badge on Sunday and posted on X: “first and last time i ever wear one of these.” The leadership of the company that created the hit AI chatbot ChatGPT remained unclear Sunday, as investors and many employees pushed over the weekend to restore Altman. He has been engineering a countercoup to retake control of one of Silicon Valley’s most valuable and high-profile startups. Altman’s camp has succeeded in bringing the board that fired him to the negotiating table and proposed a series of high-profile tech executives to potentially helm a new board that would be more aligned to his business vision. Names floated include Bret Taylor, the former co-chief executive of Salesforce; Brian Chesky, the chief executive of Airbnb who has been a longtime confidant of Altman’s; and Laurene Powell Jobs, founder and president of Emerson Collective, people familiar with the matter said.

Sheryl Sandberg, the former chief operating officer of Meta Platforms, also came up. Bloomberg previously reported that Taylor is being considered. Microsoft’s executives have also pushed for oversight in a new corporate structure, including a potential board observer seat that would give it more visibility into the company’s governance. Any greater role on the board could be a regulatory concern; Microsoft has kept its ownership stake in OpenAI below the 50% mark to avoid raising the attention of regulators. OpenAI CEO Sam Altman sacked by company over lack of ‘candid communications’ Among all the investors, Microsoft might be the most deeply intertwined in the fate of OpenAI, and the startup’s turmoil has been a liability. Beyond being OpenAI’s largest backer, Microsoft has reoriented its business around the startup’s AI software. Shares in Microsoft fell after the news of Altman’s firing. The abrupt shake-up at OpenAI turns on one of the oldest tales in Silicon Valley: a breakup between a founder and his board. But in this case it was a very particular kind of founder—the face of Silicon Valley’s artificial-intelligence revolution—and a very particular kind of board, which was tasked with making social good a priority over profit. The rupture threatens the future of the company and the billions of dollars investors had put into it.

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Can Abbas lead Palestinian Authority into Gaza after Israel-Hamas war?

The Palestinian leadership in Ramallah, under President Mahmoud Abbas, persists with a strategy of prudent neutrality, closely observing the ongoing conflict between Hamas and Israel since October 7. Abbas has not signaled any intention to engage with Hamas or entertain the notion of stepping down to make way for new leadership. The trust deficit between Abbas and Hamas has deepened, with Abbas critiquing Hamas for the precarious situation of Gaza’s people and the Palestinian cause, exacerbated by the global view of Hamas as a terror group, complicating potential collaboration. Conversely, Hamas criticizes Abbas for his perceived inaction against Israeli measures and American policies as the Gaza conflict persists.

Abbas’s low-profile stance, cordial Western relations, and adherence to international norms, he argues, are preserving Palestinian nationalism. In private meetings with US Secretary of State Antony Blinken, the Palestinian leadership received commendation for maintaining calm in the West Bank and averting a third intifada, deemed crucial by Palestinian officials in light of the current Israeli sentiment. Abbas has instructed his security apparatus to ensure the West Bank does not mirror Gaza’s turmoil. Despite heightened tensions and provocations from Israeli settlers and hardline politicians, Abbas’s patience is deemed necessary, albeit politically contentious. The Americans, post-conflict, have pledged to support a two-state resolution encompassing the West Bank, parts of Jerusalem, and Gaza. They have reassured Abbas of maintaining the PLO’s central role in Gaza’s future, highlighting its exclusive representation of the Palestinian people.

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How life Began?

 The enigma of life’s inception remains one of the most profound questions challenging the scientific community. The pursuit to unravel this mystery has led researchers to consider the early Earth’s complex chemical landscape, where inanimate substances like water and methane underwent a transition, birthing the very first living cells. This remarkable transformation, believed to have occurred over 3.5 billion years ago, is a process scientists posit could have happened on countless planets across the cosmos. The central dilemma lies in the elaborate nature of even the simplest life forms. Bacteria, for instance, boast an intricate network of over a hundred genes and a plethora of molecules engaging in a dynamic biochemical ballet. The primeval Earth presented a theater of chaos, with a rich diversity of chemicals stirred into action by elemental forces such as volcanic eruptions and fierce winds, painting a complex picture for life’s origins. Wilhelm Huck from Radboud University speaks to the vast “experimental parameter space,” hinting at the limitless combinations and conditions that could have fostered life. Amid this complexity, modern scientists are turning to artificial intelligence (AI) to sift through the enormity of data and discern patterns far beyond human analytical capacity. This new frontier is spearheaded by the use of machine learning, which is adept at parsing through extensive and disordered datasets to highlight promising conditions that foster complexity. These digital tools hold the promise of compressing decades of research into a shorter span, guiding us toward a universal theory that not only elucidates the origins of life on Earth but could apply to extraterrestrial realms as well.

The story of life’s origins is intricately tied to chemistry. Leroy “Lee” Cronin from the University of Glasgow underscores the pivotal role chemistry plays in answering these quintessential human curiosities. The field’s rich history dates back to the iconic 1953 experiment by Stanley Miller, who, under Harold Urey’s supervision, simulated Earth’s primordial conditions. His setup yielded glycine, a fundamental amino acid, setting a precedent for the potential of relatively unsupervised chemical processes to edge closer to life. Despite the groundbreaking nature of Miller’s work, the complexity it unveiled posed significant challenges. In the years that followed, “prebiotic” chemistry experiments became more refined, synthesizing a wider array of life’s building blocks, albeit under highly controlled conditions far removed from the randomness of early Earth. The goal now is to revisit the spirit of Miller’s experiment, leveraging machine learning to navigate the labyrinth of uncontrolled chemical interactions.

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Using AI and data is a winning strategy for Formula1 or any industry! the Sky is the limit

The narrative of Ian Clatworthy from Hitachi Vantara is a testament to the transformative power of data in the high-stakes world of Formula 1 racing. His journey, spanning nearly a decade, reveals a saga where the integration of IT services into the motorsport arena revolutionized the field. Clatworthy’s experience with Mitsubishi Ralliart and Honda Racing, two titans of the racing world, provided him with a front-row seat to the digital metamorphosis in this competitive sport.

This transformation is vividly captured in the upcoming Hulu and Disney+ documentary “Brawn: The Impossible F1 Story,” which chronicles the Brawn GP team’s underdog triumph in the Formula 1 World Championship. Despite its short lifespan and limited financial resources, the team’s strategic use of data propelled them to victory. Clatworthy’s role in this team exemplifies how technology can overturn expectations and redefine success. Reflecting on the early days, Clatworthy recalls the nascent stage of IT in motorsports, where even bending rules was part of the game to ensure that engineers had rapid access to crucial car data. This ingenuity was the precursor to a pivotal shift in the 2000s when IT teams became a staple at racing events, affirming the belief that technology could be leveraged to gain a competitive edge.

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What does Hezbollah’s arsenal look like?

by Jonathan Sawaya  — Beirut (AFP) Lebanon’s Hezbollah has been trading daily cross-border fire with its sworn enemy Israel as war rages in Gaza, with the Iran-backed group deploying a large weapons arsenal amassed over decades. AFP looks at the Shiite Muslim group’s firepower and how it has expanded since it fought a war with Israel in 2006.

– Armed and dangerous –

Hezbollah is the only Lebanese faction to have retained its weapons after the end of Lebanon’s 1975-1990 civil war, and is now considered to have a more powerful stockpile than the national army. It is also the most powerful group in the “axis of resistance” — an alliance of Tehran-supported groups mainly in Iraq, Syria, Yemen and the Palestinian territories. The 2006 Israel-Hezbollah war killed more than 1,200 people in Lebanon, mostly civilians, and 160 in Israel, largely soldiers. Since then, “Hezbollah has robustly expanded the quantity and the quality of its arsenal,” said Dina Arakji from Control Risks consultancy. “The group in 2006 reportedly had about 15,000 rockets, while estimates over the past couple of years suggest that this number has multiplied by almost 10 times,” she said. The group has also gained significant combat experience after years of fighting on the side of President Bashar al-Assad in Syria’s civil war. Skirmishes on the Lebanon-Israel border began on October 8, one day after Hamas attacks against Israel sparked war, but so far Hezbollah has largely limited itself to targeting sites near the Israeli border. Hezbollah chief Hassan Nasrallah has repeatedly said his group holds advanced weaponry capable of striking deep into Israeli territory.

– Fighters and tunnels –

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Forrester predicts A.I. code flaws will enable new attacks next year

by Louis Columbus @LouisColumbus VentureBeat presents: AI Unleashed – An exclusive executive event for enterprise data leaders. Hear from top industry leaders on Nov 15. Reserve your free pass DevOps teams rely more on AI-coding assistants to boost team productivity by automating coding tasks with only the most conscientious scanning final code for security flaws, Forrester warns in their 2024 cybersecurity, risk, and privacy predictions. The research and advisory firm predicts inconsistent compliance and governance practices combined with many Devops teams experimenting with multiple AI-coding assistants simultaneously to increase productivity will lead to flawed A.I. code responsible for at least three publically-admitted breaches in 2024. Forrester also warns that A.I. code flaws will pose API security risks.

AI-coding assistants are redefining Shadow I.T.

49% of business and technology professionals with knowledge of AI-coding assistants say their organizations are piloting, implementing, or have already implemented them in their organizations. Gartner predicts that by 2028, 75% of enterprise software engineers will use A.I. coding assistants, up from less than 10% in early 2023. Devops leaders tell VentureBeat it’s common to find multiple AI-coding assistants being used across teams as the pressure to produce a high volume of code every day is growing. Tighter timelines for more complex coding combined with the proliferation of over 40 AI-coding assistants available is leading to a new form of shadow I.T. where Devops teams switch from one A.I. assistant to another to see which delivers the highest performance for a given task. Enterprises are struggling to keep up with the demand from their Devops teams for new AI-coding tools approved for use corporate-wide.

CISOs face a challenging balancing act in 2024

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Boycott Campaign Against Pro-Israel Companies Gains Traction in Arab World

A robust boycott campaign targeting Western companies that support Israel is gaining momentum in the Arab world. Sparked by social media, the movement has grown in response to the recent Israeli conflict in Gaza, which has been labeled by some as “genocide” and “ethnic cleansing”. With a death toll of over 10,000 Palestinians, most of […]

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Navigating the Swell of AI Developments into 2024

The air in Silicon Valley was charged as OpenAI’s Dev Day announcements—boasting custom GPTs, GPT-4 Turbo, and an Assistants API—sent ripples of excitement across the globe. As an AI enthusiast, the surge of updates was exhilarating yet overwhelming, coming hot on the heels of a deluge of AI news the previous week. It wasn’t just […]

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LeMa: A Leap Forward in AI’s Mathematical Reasoning from Microsoft

Understanding How LeMa Works: The journey to enhanced mathematical reasoning within artificial intelligence starts with foundational models like LLaMA-2, which are designed to simulate flawed reasoning paths in math word problems. Following this, a more advanced model such as GPT-4 steps in to critique these paths, identifying and explaining errors before suggesting corrections. These iterative refinements are then fed back into the initial models, enriching their learning and reasoning capabilities.

Measurable Improvements in Reasoning: Implementing LeMa has yielded quantifiable benefits. By incorporating LeMa, five different large language models (LLMs) demonstrated enhanced performance on a variety of mathematical reasoning tasks. This method proved superior to merely fine-tuning on conventional chain of thought (CoT) data, showcasing the robustness of LeMa’s approach.

LeMa’s Impressive Results on Datasets: Specialized LLMs, including WizardMath and MetaMath, have reaped the advantages of the LeMa system. These models have achieved unparalleled accuracy on complex datasets, such as 85.4% pass@1 accuracy on GSM8K and 27.1% on MATH, outperforming previous best-performing non-execution open-source models.

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