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OpenAI Reduces Dependency on Scale AI Amid Meta Acquisition

According to Cointelegraph, OpenAI is scaling back its contracts with Scale AI, a data labeling startup recently acquired by Meta. This decision comes shortly after Meta announced a $14.8 billion deal for a 49% ownership stake in Scale AI, marking Meta's second-largest acquisition. As part of the deal, Scale CEO Alexandr Wang will join Meta’s experimental AI project, with the companies having announced the agreement on June 12. Scale AI, founded in 2016 and backed by over 100 investors, provides labeled data crucial for training and enhancing artificial intelligence models. The startup has been a supplier to prominent AI companies such as Anthropic, Cohere, and Adept. In 2019, Scale AI raised $100 million in a Series C funding round, according to PitchBook. However, OpenAI is now phasing out its reliance on Scale AI's data, seeking more specialized data sources for its AI models. An OpenAI spokesperson revealed that the company began reducing its contracts with Scale over the past year, noting that Scale accounted for only a small portion of OpenAI’s data requirements. Google is reportedly another company moving away from contracts with Scale AI, driven by concerns that Meta's acquisition could provide insights into competitors’ AI advancements. Reuters reported that this strategic shift is motivated by the potential competitive implications of Meta's involvement with Scale AI. Despite these changes, Scale interim CEO Jason Droege emphasized that the startup remains an independent entity, asserting that their commitment to protecting customer data remains unchanged. OpenAI is now exploring alternative data suppliers, including emerging companies like Mercor, to support its operations. Bloomberg highlighted that Scale AI initially employed a large number of contractors to label images and text for early AI systems. Over time, the company transitioned to hiring more educated contractors to contribute to the development of advanced AI models. This evolution reflects the growing complexity and sophistication required in AI data labeling processes.
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Study Suggests AI Chatbots May Impact Cognitive Abilities

According to Cointelegraph, a recent study conducted by researchers at the Massachusetts Institute of Technology's Media Lab indicates that artificial intelligence chatbots, such as OpenAI's ChatGPT, may be affecting cognitive abilities. The study involved 54 participants who completed essay writing tasks using three different methods: ChatGPT, search engines, and their own cognitive abilities. In a subsequent session, participants who initially used ChatGPT were asked to write without any tools, while those who relied solely on their brains were instructed to use the language model.The findings were significant, revealing that over 83% of ChatGPT users struggled with memory recall, unable to quote from essays they had written just minutes earlier. Similarly, more than 80% of participants using language models faced difficulties recalling their own work. Alex Vacca, co-founder of sales tech agency ColdIQ, described these results as "terrifying," suggesting that AI might be leading to cognitive decline rather than enhancing productivity. The researchers noted that brain connectivity diminished with increased reliance on external tools, with the brain-only group showing the strongest cognitive networks, followed by the search engine group, and finally, the language model group exhibiting the weakest coupling.The study utilized electroencephalography (EEG) to monitor brain activity, assessing cognitive engagement and load during the tasks. The researchers warned of accumulating "cognitive debt" from repeated dependence on external systems like language models, which could replace the cognitive processes necessary for independent thinking. This cognitive debt, while deferring mental effort in the short term, could lead to long-term consequences such as reduced critical inquiry, increased susceptibility to manipulation, and decreased creativity.The paper, which is yet to undergo peer review, suggests that the use of AI language models might negatively impact learning, particularly among younger users. The researchers emphasized the need for "longitudinal studies" to fully understand the long-term effects of AI chatbots on human cognition before these tools are deemed beneficial for humanity. When approached for comment, ChatGPT responded that the study does not claim the chatbot is inherently harmful but cautions against excessive reliance without reflection or effort.
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Amazon to Invest $13 Billion in Australia's AI and Cloud Infrastructure

According to Cointelegraph, Amazon has announced plans to invest over $13 billion in Australia's artificial intelligence and cloud infrastructure by 2029. This significant investment, amounting to 20 billion Australian dollars, marks the largest technology investment in the country by a global company. The funds will be directed towards expanding, operating, and maintaining Amazon Web Services (AWS) data centers across Australia.Australian Prime Minister Anthony Albanese highlighted the importance of this investment, stating that it represents a major opportunity for the nation to enhance its AI capabilities using secure and resilient infrastructure. The initiative is expected to create economic opportunities for Australians, including the creation of skilled jobs and infrastructure to support complex AI and supercomputing applications.A portion of the $13 billion investment will be allocated to the construction of three new renewable solar farms in Victoria and Queensland. These projects will increase Amazon's total renewable energy initiatives in Australia to 11. The solar farms are projected to generate approximately 1.4 million megawatt hours of carbon-free energy annually, which is enough to power around 290,000 Australian homes.Amazon's presence in Australia began in 2012 with the launch of the AWS Asia Pacific in Sydney. In July 2024, the Australian government collaborated with AWS to introduce a "Top Secret" AWS Cloud for national security and defense purposes. Additionally, on June 11, Amazon partnered with Talen Energy to secure nuclear energy for AWS servers and AI data centers in Pennsylvania until 2042. This partnership followed Amazon's announcement of a $20 billion investment in AI infrastructure in Pennsylvania, reflecting a broader trend among tech firms to enhance AI capabilities.The ongoing investment in AI services and automation is poised to significantly boost Australia's economy. According to the Government’s Department of Industry, Science and Resources, AI and automation-related advancements are expected to contribute an annual $400 billion to the country's gross domestic product (GDP) by 2030. Between 2020 and 2022, Amazon invested over $312 million in Australian renewable energy projects, underscoring its commitment to sustainable development.
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