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Reed takes a look this week at DeepMind co-founder Demis Hassabis’ eventful nine days, Sam Altman’s ͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
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October 18, 2024
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Reed Albergotti
Reed Albergotti

Hi, and welcome back to Semafor Tech.

The last nine days have been busy for Demis Hassabis, the co-founder of DeepMind, now essentially the AI division of Google. They began with Hassabis winning the Nobel prize in chemistry for solving the protein folding problem. They ended with his organization gaining responsibility for Gemini, Google’s consumer-facing AI product that competes with OpenAI’s ChatGPT.

Taking a step back, the ascendance of Hassabis and DeepMind at Google is remarkable. In 2013, Google and Facebook were in a bidding war for the London-based startup making waves in the niche world of advanced AI. The winning offer: $500 million.

Before the release of ChatGPT two years ago, DeepMind was important, but operated separately from Google and had no impact on its core business.

It’s now arguably the most important division at Alphabet, which last year earned about 600,000 times what it paid for DeepMind. And Hassabis, a prodigy computer programmer who became a neuroscientist, is now one of most powerful executives in the corporate world.

Moving Gemini into DeepMind is a logical move. But it’s symbolic of how much has changed in two years. After scrambling to adjust to the post-ChatGPT world and suffering some setbacks along the way, Google’s AI machine is in motion.

Its recent hit products, like Notebook LM, which creates “Audio Overviews,” (essentially podcasts) out of documents you don’t have time to read, are a sign the company isn’t chasing anymore, but following its own path.

Speaking of the startup mentality: it’s Semafor’s two-year birthday today. Thank you for reading and helping us get off the ground.

Move Fast/Break Things
People check an iPhone 16 Pro as the new iPhone 16 series smartphones go on sale at an Apple store in Beijing, China
Florence Lo/Reuters

➚ MOVE FAST: Top line. Despite China’s slowing economy, sales of the new iPhone are up 20% in the country since its launch three weeks ago, according to research firm Counterpoint. That’s promising for Apple, which had seen its smartphone popularity wane due to strong competition from Chinese rivals like Huawei.

➘ BREAK THINGS: Bottom line. TSMC’s dealings with Huawei are under scrutiny by the US government, which has greatly expanded its crackdown on the Chinese telecom firm over the years and restricted the flow of advanced chips to the People’s Republic. TSMC said it’s complying with American export control rules.

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Artificial Flavor
The Worldcoin orb
Courtesy of World

The Sam Altman co-founded crypto project Worldcoin has dropped “coin” from its name, hinting at broader ambitions. The company announced the change Thursday as it unveiled its next generation eyeball-scanning orbs, which are designed to protect human privacy as AI-enabled deep fakes become better at looking real. “Humanity now faces a new existential question: How will humans & AI coexist?” the company said in a statement.

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Q&A
Peter Rawlinson, CEO of Lucid Motors
Courtesy of Lucid Motors

My Semafor Business colleague Liz Hoffman interviewed Lucid CEO Peter Rawlinson. They chatted about EV subsidies, Elon Musk, and Saudi Arabia, which is both Lucid’s biggest investor and the site of its only non-US factory. Subscribe to her newsletter: Sign up here..

Liz Hoffman: You’re aiming for 9,000 cars this year. There was a time that you thought by 2024, you’d be at 90,000. What happened?

Peter Rawlinson: The market is tough. The actual sales numbers of EVs are increasing. It’s just that the rate of increase was not what we anticipated. It’s like saying there’s inflation, but the rate of inflation is less.

Given how important government subsidies are for EV buyers, do you have a point of view on the election?

I am very grateful for the [Inflation Reduction Act]. I don’t want to have this be misinterpreted; thank you very much. But not all EVs are born equal. Just as we’ve got gas-guzzling internal combustion engine cars, we’ve got electron-guzzling EVs. The IRA incentivizes how many batteries you put in an electric car. We should not be incentivizing ‘how big is your gas tank?’ If Lucid made worse cars, I’d get a lot more money from the IRA.

You worked for Elon Musk for three years. Are you surprised by his turn over the past year?

I know him very well. Not really.

Read the rest of the conversation, including more thoughts on Musk and the joyride that sealed a Saudi investment. →

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Semafor Stat
$30 million

The amount of bets placed on former President Donald Trump winning the election on the crypto betting site Polymarket by four mystery accounts. The outsized bets have caused Trump’s odds to skyrocket on the site, which is backed by Peter Thiel and promoted by Elon Musk — both Trump supporters. Online betting markets are in vogue in the tech industry and often used to gauge things like the existential risk of AI, but the presidential race is exposing a major weakness in the concept.

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Obsessions
Meta CEO Zuckerberg makes a keynote speech at the Meta Connect annual event
Manuel Orbegozo/Reuters

Meta announced this morning it’s releasing a new AI model and data set aimed at helping scientists make new raw materials.

If that doesn’t sound exciting, think of it this way: Of all the advances in technology, humanity’s survival is still largely dependent on things we’ve dug up from the ground, oil, minerals, plants, etc. All of those things have served us incredibly well for thousands of years, but they may not be enough to get us through the next thousand.

We need to find new materials that can make better and cheaper batteries, more efficient solar panels, and faster computers. Until recently, the way scientists have looked for these new materials is by essentially running lab experiments based on educated guesses.

AI researchers at Meta hope they can speed up that process by providing a massive new data set that can be used to train AI models, as well as a new AI model of its own, that can predict new inorganic materials, significantly cutting research time.

To get the data, Meta used something called Density Functional Theory, which is basically a way to express the essential makeup of atoms on paper, in computational form. Running a Density Functional Theory calculation takes a lot of compute power, so Meta used its own servers when CPUs weren’t being used by Facebook and Instagram members.

“When the sun was over the Pacific Ocean and we didn’t have to surface as many cat videos, we just ran atomic simulations,” said Larry Zitnick, a research scientist at Meta’s Fundamental AI Research (FAIR) team.

The team ended up with more than 100 million of these calculations, releasing them under the name Open Materials 2024. An AI model trained on the data set can then make guesses about possible new atomic structures for materials without doing all of the complex calculations.

Meta’s hope is that the data will lead to new materials that will help solve problems like climate change, but also potentially help Meta. The lenses of its prototype augmented reality glasses called Orion, for instance, are made of silicon carbide wafers, an advanced semiconductor material that allows Meta to push the envelope on “field of view,” creating an image that appears to be much larger than previous attempts at the technology. But it’s extremely expensive to make.

It’s possible that another material that doesn’t yet exist could one day replace silicon carbide.

“When it comes to materials discovery, this is a huge, huge area that has potential to completely revolutionize how we will handle the energy crisis, how we will handle some of the current crunch for compute of AI models, and how we will potentially build some of the AR/VR devices in the future,” said Joelle Pineau, who leads the FAIR team at Meta.

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What We’re Tracking
A CATL stand at the The International Motor Show in Germany
The International Motor Show in Germany. IMAGO/Manfred Segerer

As European officials heighten their scrutiny of Beijing’s clean-tech imports, Chinese companies are setting up shop on the continent, bringing them closer to a lucrative market and helping them avoid trade restrictions.

One giant firm is going even further, trying to morph into more of a European operation.

CATL, the world’s largest electric-vehicle battery company, is taking pains to localize its German business by reducing its Chinese headcount, straying from Mandarin as the lingua franca, and serving local staples — in addition to Chinese fare — in the factory canteen, its HR coordinator in Germany told Semafor reporter J.D. Capelouto in a rare interview.

“The company’s become more and more local, or European, than Chinese,” said Constance Ulbrich, who was the first employee hired for CATL’s Germany plant and who now leads learning and development. She discussed how the company is working to make Germans more comfortable working with their Chinese counterparts, and vice versa.

CATL began production of lithium-ion battery cells in Thuringia, a largely rural eastern German state, in late 2022, and operates a logistics center there as well. The plant aims to eventually make enough batteries to power between 185,000 and 350,000 electric cars per year.

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