We dive into the SOTA from Chinese AI labs, the chip wars, sanctions, and loopholes.

At Air Street, we search for ideas that are non-consensus today but have the potential to flip into being voted consensus by the market in a few years' time. We see this in founders who are working on unfashionable ideas that are difficult to pull off. These teams have a deep-seated conviction that the weight of evidence is on their side and the timing is right to chip away at the problem. 

The generative AI copyright wars took a new turn recently, when the Recording Industry Association of America (RIAA) announced that it was suing music generation services Suno and Udio for massive infringement of copyright. The lawsuit alleges the systematic unauthorized use of copyrighted works to train the two companies’ models and points to how some of their output either closely resembles or directly copies various iconic songs. 

Powering breakthrough visual storytelling with AI-first visual effects for Hollywood.

Welcome to the latest issue of your guide to AI, an editorialized newsletter covering the key developments in AI policy, research, industry, and startups over the last month.

There are also specific dynamics at play in the frontier model space that will likely prevent the market from correcting in the near future. These have the potential to impact the entire AI value chain, from the chipmakers through to investors and founders.

What went wrong and how to prevent this from happening again.

We recently stumbled across the first ever Hacker News thread discussing Attention Is All You Need, the landmark paper that describes the transformer architecture. The work had come out in the summer of 2017, but it took a while for the wider AI community to begin to grasp its significance and build on it. 

Most commenters at the time expressed interest or admiration. Some didn’t understand it. Others thought that the paper would probably be out of date in a few months. And one person asked what it could do for capsule networks.

But whatever happened to capsule networks?

Guide to AI is an editorialized newsletter covering the key developments in AI policy, research, industry, and startups over the last month.

Produced by Air Street Capital.

If foundation model economics is alchemy, what does that mean for hardware?

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