Faculty AI develops AI for military drones
Faculty AI, a consultancy company with significant experience in AI, has been developing AI technologies for both civilian and military applications. Known for its close work with the UK government on AI safety, the NHS, and education, Faculty is also exploring the use of AI in military drones. The company has been involved in testing AI models for the UK’s AI Safety Institute (AISI), which was established to study the implications of AI safety.
While Faculty has worked extensively with AI in non-lethal areas, its work with military applications raises concerns due to the potential for autonomous systems in weapons, including drones. Though Faculty has not disclosed whether its AI work extends to lethal drones, it continues to face scrutiny over its dual roles in advising both the government on AI safety and working with defense clients.
The company has also generated some controversy because of its growing influence in both the public and private sectors. Some experts, including Green Party members, have raised concerns about potential conflicts of interest due to Faculty’s widespread government contracts and its private sector involvement in AI, such as its collaborations with OpenAI and defence firms. Faculty’s work on AI safety is seen as crucial, but critics argue that its broad portfolio could create a risk of bias in the advice it provides.
Despite these concerns, Faculty maintains that its work is guided by strict ethical policies, and it has emphasised its commitment to ensuring AI is used safely and responsibly, especially in defence applications. As AI continues to evolve, experts call for caution, with discussions about the need for human oversight in the development of autonomous weapons systems growing more urgent.
US tech leaders oppose proposed export limits
A prominent technology trade group has urged the Biden administration to reconsider a proposed rule that would restrict global access to US-made AI chips, warning that the measure could undermine America’s leadership in the AI sector. The Information Technology Industry Council (ITI), representing major companies like Amazon, Microsoft, and Meta, expressed concerns that the restrictions could unfairly limit US companies’ ability to compete globally while allowing foreign rivals to dominate the market.
The proposed rule, expected to be released as soon as Friday, is part of the Commerce Department’s broader strategy to regulate AI chip exports and prevent misuse, particularly by adversaries like China. The restrictions aim to curb the potential for AI to enhance China’s military capabilities. However, in a letter to Commerce Secretary Gina Raimondo, ITI CEO Jason Oxman criticised the administration’s urgency in finalising the rule, warning of ‘significant adverse consequences’ if implemented hastily. Oxman called for a more measured approach, such as issuing a proposed rule for public feedback rather than enacting an immediate policy.
Industry leaders have been vocal in their opposition, describing the draft rule as overly broad and damaging. The Semiconductor Industry Association raised similar concerns earlier this week, and Oracle’s Executive Vice President Ken Glueck slammed the measure as one of the most disruptive ever proposed for the US tech sector. Glueck argued the rule would impose sweeping regulations on the global commercial cloud industry, stifling innovation and growth.
While the administration has yet to comment on the matter, the growing pushback highlights the tension between safeguarding national security and maintaining US dominance in the rapidly evolving field of AI.
Amazon invests $11 billion in Georgia
Amazon Web Services (AWS) has announced a $11 billion investment to build new data centres in Georgia, aiming to support the growing demand for cloud computing and AI technologies. The facilities, located in Butts and Douglas counties, are expected to create at least 550 high-skilled jobs and position Georgia as a leader in digital innovation.
The move highlights a broader trend among tech giants investing heavily in AI-driven advancements. Last week, Microsoft revealed an $80 billion plan for fiscal 2025 to expand data centres for AI training and cloud applications. These facilities are critical for supporting resource-intensive AI technologies like machine learning and generative models, which require vast computational power and specialised infrastructure.
The surge in AI infrastructure has also raised concerns about energy consumption. A report from the Electric Power Research Institute suggests data centres could account for up to 9% of US electricity usage by 2030. To address this, Amazon has secured energy supply agreements with utilities like Talen Energy in Pennsylvania and Entergy in Mississippi, ensuring reliable power for its expanding operations.
Amazon’s commitment underscores the growing importance of AI and cloud services, as companies race to meet the demands of a rapidly evolving technological landscape.
AI data centres strain US power grid
The increasing number of data centres powering AI could pose significant challenges for the United States power grid, as reported by Bloomberg. Findings indicate a connection between data centre activity and ‘bad harmonics,’ a term describing electrical power distortions that can damage appliances, heighten fire risks, and lead to power outages.
Bloomberg’s analysis, using data from Whisker Labs and DC Byte, revealed that over half of homes with the worst power distortions are located within 20 miles of active data centres. AI-driven centres, with their unpredictable energy needs, exacerbate these grid strains, pushing infrastructure beyond its designed limits.
Experts, including Aman Joshi of Bloom Energy, warn that no current grid can handle such intense load fluctuations from multiple data centres. While some utility companies question these findings, the report underscores the urgent need to address the interplay between technological expansion and energy stability.
DeepSeek unveils a powerful new AI model
Chinese AI firm DeepSeek has unveiled DeepSeek V3, a groundbreaking open-source model designed for a range of text-based tasks. Released under a permissive licence, the model supports coding, translations, essay writing, and email drafting, offering developers the freedom to modify and deploy it commercially.
In internal benchmarks, DeepSeek V3 outperformed major competitors, including Meta’s Llama 3.1 and OpenAI’s GPT-4o, especially in coding contests and integration tests. The model boasts an impressive 671 billion parameters, significantly exceeding the size of many rivals, which often correlates with higher performance.
DeepSeek V3 was trained on a dataset of 14.8 trillion tokens and built using a data centre powered by Nvidia H800 GPUs. Remarkably, the model was developed in just two months for a reported $5.5 million—far less than comparable systems. However, its size and resource demands make it less practical without high-end hardware.
Regulatory limitations influence the model’s responses, particularly on politically sensitive topics. DeepSeek, backed by High-Flyer Capital Management, continues to push for advancements in AI, striving to compete with leading global firms despite restrictions on access to cutting-edge GPUs.
AI sales tools spark rapid growth but face long-term questions
AI startups specialising in sales development representatives (SDRs) are experiencing rapid growth as businesses embrace new technologies to streamline outreach. These startups, leveraging large language models (LLMs) and voice technology, automate tasks like crafting personalised emails and placing calls to potential customers. This sector has seen an unprecedented surge, with multiple companies achieving notable success in a short span, according to Shardul Shah of Index Ventures. However, investors remain cautious about whether this trend will yield lasting results or fade once the novelty wears off.
The appeal of AI SDRs is particularly strong among small and medium-sized businesses, which find it easier to experiment with these tools. Arjun Pillai, founder of Docket, attributes the popularity to declining reply rates for traditional cold emails, prompting businesses to explore AI-driven solutions. Startups like Regie.ai, AiSDR, and 11x.ai, as well as incumbents like ZoomInfo, are vying for market share, boasting impressive revenue growth. Yet, as Tomasz Tunguz of Theory Ventures noted, some businesses report that while AI SDRs generate substantial leads, they don’t necessarily translate into higher sales, highlighting a gap in effectively integrating AI into sales strategies.
Despite the enthusiasm, the rise of AI SDRs faces significant challenges. Industry leaders such as Salesforce and HubSpot, which control vast customer data, could introduce similar AI features, potentially outpacing smaller startups. Investors also point to cautionary tales like Jasper, a copywriting AI startup that stumbled after the launch of ChatGPT, emphasising the uncertainty surrounding the longevity of AI adoption in sales. For now, the potential of AI SDRs to revolutionise sales processes is undeniable, but their ability to sustain growth and deliver tangible results remains to be seen.
OpenAI services suffer second outage in December
OpenAI’s ChatGPT, Sora, and developer API experienced a significant outage on Thursday, disrupting services for over four hours. The issue began around 11 a.m. PT, with partial recovery reported by 2:05 p.m. PT. By 3:16 p.m. PT, OpenAI stated that Sora was operational, though ChatGPT users might still encounter issues accessing their chat history.
According to OpenAI’s status page, the outage was caused by one of their upstream providers, but the company did not provide further details. This marks the second major outage for OpenAI’s services in December. Two weeks ago, a similar incident attributed to a telemetry service malfunction resulted in a six-hour disruption, a notably longer downtime than usual.
Interestingly, popular platforms utilising OpenAI’s API, such as Perplexity and Siri’s Apple Intelligence integration, appeared unaffected during the outage, as confirmed by their status pages and independent testing. OpenAI is actively working to ensure full restoration of its services while addressing the root causes behind these recurring disruptions.
German parties outline technology policies ahead of election
As Germany prepares for national elections on February 23, political parties are outlining their tech policy priorities, including digitalisation, AI, and platform regulation. Here’s where the leading parties stand as they finalise their programs ahead of the vote.
The centre-right CDU, currently leading in polls with 33%, proposes creating a dedicated Digital Ministry to streamline responsibilities under the Ministry of Transport. The party envisions broader use of AI and cloud technology in German industry while simplifying citizen interactions with authorities through digital accounts.
Outgoing Chancellor Olaf Scholz’s SPD, polling at 15%, focuses on reducing dependence on US and Chinese tech platforms by promoting European alternatives. The party also prioritises faster digitalisation of public administration and equitable rules for regulating AI and digital platforms, echoing EU-wide goals of tech sovereignty and security.
The Greens, with 14% support, highlight the role of AI in reducing administrative workloads amid labour shortages. They stress the need for greater interoperability across IT systems and call for an open-source strategy to modernise Germany’s digital infrastructure, warning that the country lags behind EU digitalisation targets.
The far-right AfD, projected to secure 17%, opposes EU platform regulations like the Digital Services Act and seeks to reverse Germany’s adoption of the NetzDG law. The party argues these measures infringe on free speech and calls for transparency in funding non-state actors and NGOs involved in shaping public opinion.
The parties’ contrasting visions set the stage for significant debates on the future of technology policy in Germany.