Welcome to this new edition!

In Today’s Menu:

• AI-related Quote

• AI-ducation: The Simplicity of Linear Regression

• Top 3 News of the Week

• AI story: Juergen Schmidhuber

• Extra News

• Image of The Day

Learn AI in 5 Minutes a Day

AI Tool Report is one of the fastest-growing and most respected newsletters in the world, with over 550,000 readers from companies like OpenAI, Nvidia, Meta, Microsoft, and more.

Our research team spends hundreds of hours a week summarizing the latest news, and finding you the best opportunities to save time and earn more using AI.

Sign up with 1-Click

The AI-related Quote

The AI-ducation

The simplicity of Linear Regression

Linear Regression is one of the oldest and simplest AI tools. Born in statistics, it became one of the earliest methods used in machine learning. But why is it important?

At its core, Linear Regression is about finding a straight line that best fits a set of data points. Imagine you have a bunch of dots on a graph. The goal is to draw a line that represents the "average" trend of those dots. This line can then predict future points, helping us make decisions based on past data.

Though it's simple, Linear Regression is powerful. It's used in everything from predicting housing prices to modeling climate data. This method helped pave the way for more complex algorithms and remains a foundational technique in data science today.

The 3 News of the Week

#1 - Big Tech’s $200B AI investment surge

• In their latest earnings reports, Apple, Amazon, Google, and Meta revealed they are set to collectively invest over $200 billion in AI advancements this year.

• Amazon ramped up its spending on data centers and specialized chips by 81% to $22.6 billion, while Meta increased its capital expenditure guidance, aiming as high as $40 billion, despite ongoing losses from Reality Labs.

• Google outperformed earnings expectations, sharing that over 25% of its new code is AI-generated, and Apple continues to grow its AI-driven services sector. The spending trend is expected to continue into next year as Big Tech aims to stay at the forefront of AI innovation.

#2 - OpenAI’s next model “Orion” teased for December

• OpenAI is rumored to be releasing a powerful new model, codenamed "Orion," by December, but access may initially be limited to key partners rather than the public ChatGPT interface.

• Speculation suggests Orion could be up to 100 times more capable than GPT-4, with deployment potentially through Microsoft’s Azure platform, where engineers are already preparing for its arrival.

• While OpenAI has denied specific plans to release "Orion" by year-end, the company has recently restructured and raised $6.6 billion, adding momentum to its quest for increasingly advanced AI models.

#3 - Perplexity’s AI Election Hub Launches with Live Voting Info

• Perplexity AI has introduced an Election Information Hub, offering AI-generated answers to voter questions, candidate summaries, and live vote counts, sourcing data from the Associated Press and Democracy Works.

• The hub provides polling details and ballot information based on users’ locations, while also tracking live results for key races. However, some AI-generated summaries have shown errors, highlighting the risks of using AI in high-stakes areas like elections.

• Perplexity is addressing accuracy issues as it prepares for Election Day, aiming to provide trustworthy, non-partisan information to voters.

The AI Story

Juergen Schmidhuber

Juergen Schmidhuber, a German computer scientist, is often called the "father of modern AI" for his pioneering work in deep learning. Alongside his student Sepp Hochreiter, Schmidhuber co-invented the Long Short-Term Memory (LSTM) neural network in the 1990s—a breakthrough that allowed AI to recognize patterns across time, transforming tasks like speech recognition, language translation, and video analysis.

LSTM became a foundational model in AI because of its ability to "remember" past information, making it invaluable for understanding sequences, like sentences or sound waves. Decades after its creation, LSTM still powers many AI applications we use today, from voice assistants to chatbots.

Schmidhuber’s contributions extend beyond LSTM. His research on self-improving AI and artificial curiosity has influenced advancements toward AI that can learn, adapt, and explore autonomously. His work has shaped the evolution of machine learning, solidifying his place as one of AI’s most impactful thinkers.

The Extra News

• A Conversation With Leading AI Expert Kurt Kendall On Leveraging Disruptive Technologies To Drive Growth

• From nuclear to quantum computing, how Big Tech intends to power AI’s insatiable thirst for energy

Image of The Day

Prompt: 
"human design" chart graph made in stone in shades of gray and ash and pastel yellow. simple but with visible structure

Thanks for your time!

See you next Tuesday at 9:12 am!

Hey readers, Doug here!

I'd like to sincerely thank you for taking the time to read The AI Newsroom every week.

I make every effort to send you valuable emails every week.

Please let me know how you found this edition by replying to this email or by answering the questionnaire below. 👇

♻️ Please also feel free to share as much of the newsletter as you can with your friends, colleagues, or AI girlfriend. It helps a lot!

Keep Learning! 💚