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Google AI Businesses Technology

Google Paid $2.7 Billion To Bring Back an AI Genius Who Quit in Frustration (msn.com) 71

At a time when tech companies are paying eye-popping sums to hire the best minds in artificial intelligence, Google's deal to rehire Noam Shazeer has left others in the dust. From a report: A co-author of a seminal research paper that kicked off the AI boom, Shazeer quit Google in 2021 to start his own company after the search giant refused to release a chatbot he developed. When that startup, Character.AI, began to flounder, his old employer swooped in.

Google wrote Character a check for around $2.7 billion, according to people with knowledge of the deal. The official reason for the payment was to license Character's technology. But the deal included another component: Shazeer agreed to work for Google again. Within Google, Shazeeer's return is widely viewed as the primary reason the company agreed to pay the multibillion-dollar licensing fee. The arrangement has thrust him into the middle of a debate in Silicon Valley about whether tech giants are overspending in the race to develop cutting-edge AI, which some believe will define the future of computing.

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Google Paid $2.7 Billion To Bring Back an AI Genius Who Quit in Frustration

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  • by Anonymous Coward

    But I would still like billions of dollars. Ideas?

  • by nightflameauto ( 6607976 ) on Wednesday September 25, 2024 @11:18AM (#64816383)

    The arrangement has thrust him into the middle of a debate in Silicon Valley about whether tech giants are overspending in the race to develop cutting-edge AI, which some believe will define the future of computing.

    There's a debate about it? I suppose Silicon Valley has always been a little fantasy based, though I think the AI hype cycle has been one of the bigger and flashier ones we've seen in a minute or two.

    What we're seeing in the AI big boys club is the sunk cost fallacy on a scale rarely, if ever, seen before. Combined with the hype machine, it creates a absolute certainty that the end-result *HAS* to be all the amazing things folks like Sam Altmant say, or people wouldn't be spending all this money on it. And if you're going to play the game, you have to be the winner. He who spends the most is absolutely assured to win! AND THEN THEY CAN BE HUMANITY'S SAVIOR AND BE WORSHIPPED AND PRAISED FOREVERMORE!

    That's the mentality of the AI companies in a nutshell. They believe all the hype, and absolutely believe that they are on the right path and that all they need is just more, more, MORE, MORE of everything to get there. More horsepower, more money, more energy, more datacenters, more. Greed on a scale the pre-digital robber barons would look at with a raised eyebrow and go, "Bro, like, could you maybe chill with the gimme gimme? You're embarrassing us."

    • Actually, if there's anything worth investing in right now, it's people who deeply understand this stuff.
    • Everyone sees the potential for a second Industrial Revolution, or a new ubiquitous technology like Smartphones were.

      They don't want to be caught letting the market slip them by.

      • Just wait for someone to hype blockchain and AI in one sentance.
        • Re:Ya don't say? (Score:5, Interesting)

          by Seven Spirals ( 4924941 ) on Wednesday September 25, 2024 @12:00PM (#64816493)
          You're going to be disappointed, but several already have. ChatGPT mentioned these assholes combine AI and blockchain. Ugh.

          SingularityNET: A decentralized marketplace for AI algorithms and services. It allows developers to monetize their AI solutions, and users can access a wide range of AI services. Transactions are facilitated using the platform's native cryptocurrency, AGIX.
          Fetch.ai: Fetch.ai is building a decentralized platform that uses AI and machine learning to enable autonomous economic agents. These agents can perform tasks such as data analysis, supply chain optimization, and energy grid management. The platform operates using its native token, FET.
          Ocean Protocol: This project provides a decentralized data exchange protocol that leverages blockchain technology to unlock data for AI. It enables secure and transparent data sharing, allowing AI models to access diverse datasets. The native token, OCEAN, is used for transactions within the network.
          Numerai: Numerai is a hedge fund that crowdsources AI models from data scientists worldwide. Participants build predictive models using encrypted data and are rewarded in the platform's cryptocurrency, NMR, based on their model's performance in the stock market.
          DeepBrain Chain: A decentralized AI computing platform that aims to reduce the cost of AI computations. By leveraging blockchain technology, it allows for secure and private sharing of computing resources. The network uses the DBC token for transactions.
          Cortex: Cortex is developing a decentralized AI platform that integrates AI models into smart contracts. This allows for AI-powered decentralized applications (dApps) that can execute AI algorithms on the blockchain. The platform uses the CTXC token.
          • Those all sound like AI-generated taglines for companies founded by students in 6-month MBA programs.

            • Iknowrite? The sad thing is that I checked a few out and they are disappointingly "real." Insomuch that "real" means they aren't made up by AI, but rather real organizations doing some really really dodgy stuff for VC.
      • Why not? I'm sure a lot of farmers were happy to not get in on the ground floor of mobile phone manufacturing. Why do these companies feel that they must be in every single market that exists? Why don't they first do one the well before doing other things half assed?

        • Because it's not doing something well and growing a reputation for making a reliable product, it's about making the fast fucking buck and selling out before it crashes. Infinite growth, leave someone else holding the bag, baby!
    • Wow I wish I had billions of bux to throw around on bullshit. They really are based in fantasy because everyone around me is just trying to put food on their plate and keep a roof over their heads. So how do I get into this fucking unicorn land these bozos live in?
      • Wow I wish I had billions of bux to throw around on bullshit. They really are based in fantasy because everyone around me is just trying to put food on their plate and keep a roof over their heads. So how do I get into this fucking unicorn land these bozos live in?

        Step 1: Have a good idea.
        Step 2: Develop that good idea to the point it impresses dimwits, but not to the point where it's a sellable product.
        Step 3: Either convince yourself, or hire a money man that's convinced that it *IS* a sellable product.
        Step 4: Fleece VC firms.
        Step 5: Run and repeat starting at step 1 as the current iteration falls apart.

    • Re:Ya don't say? (Score:5, Insightful)

      by timeOday ( 582209 ) on Wednesday September 25, 2024 @12:00PM (#64816495)
      These billions are coming out of money that google is ALREADY making in this business - not a hazy dream about the future.

      For technical information, AI has largely replaced search for me. I'm not going to say this particular deal was worth what they paid. But google is not irrational to try very, very hard to maintain a stranglehold on the firehose of cash they currently have.

      • If you use Copilot on Bing, then AI doesn't have to replace search. Copilot gives you links to the original sources, so you can verify them. It's better than Google.
    • Your [nightflameauto's] comment is currently modded Funny, but maybe you can explain what they're laughing at? I think you're mostly poking at the pink elephant in the room that no one wants to think about. (Why don't they want to think about the room?)

      I'm mostly thinking about it from the other perspective, which is that our perspective on AI must be all wrong. Enormous amounts of money and electricity and silicon are being poured into AI, but we keep going off the rails. AI winter follows AI summer and wh

      • Your [nightflameauto's] comment is currently modded Funny, but maybe you can explain what they're laughing at? I think you're mostly poking at the pink elephant in the room that no one wants to think about. (Why don't they want to think about the room?)

        I can't say for certain what other people are laughing at. I'm laughing at the fact that we, humans in general, would sooner pour all known resources into daydreams than face the fact that we're on the wrong path. I find that pretty hysterical myself. I mean, in a somewhat laugh-until-you-cry way.

    • It's a Mad Mad Mad Mad World. They all know (or believe) that there's a lot of money there at the destination, and they're going to crazy hijinks to try and get there first. Except that in the movie, hilarity ensued, whereas in real life it could cause an economic calamity similar to the dotcom or mortgage backed security bust.

      Now if they paid those billions in stock, then when Google goes bust both the payer and payee lose out.

      • It's a Mad Mad Mad Mad World.

        Memories. My dad and I used to have raging debates about whether "It's a Mad Mad Mad Mad World" or "The Great Race" were the best comedic movie of all time. That's been a few eons ago. And I'd still watch either of them over most of the last decade's movies.

  • The new Jumbo Shrimp.
  • So they must be trying the exact polar opposite strategy for Youtube. It's not working out so well. Those people are so out of touch with what the customers and creators want, it's like they just picked up random people at the bus stop and said "here, manage the biggest video platform in the world."
    • Re: (Score:2, Funny)

      by Anonymous Coward

      it's like they just picked up random people at the bus stop and said "here, manage the biggest video platform in the world."

      ...that might actually produce positive results.

  • by rsilvergun ( 571051 ) on Wednesday September 25, 2024 @11:33AM (#64816427)
    this is why inflation spiked. Every time a mega corp screws up instead of being forced to compete they just take a mountain of cash from their untaxed income and use it to buy up the competitor. The same pattern here can be found in our food supply, automotive industry, heck even the housing industry.

    This is why are great grand parents cranked tax rates on the top end of corporate earnings, banned stock buy backs and broke up the trusts. They'd be disappointed as heck with us if they saw us just sitting here taking it on the chin.
    • Inflation spiked because they handed out money during the pandemic, and congress has been spending like they have a blank check. Bankrolled by the federal reserve. It hasn't been paid back, and any loans that aren't paid back, inflate the money supply. More dollars chasing the same goods and services drives prices up. If you're a seller, and everythings flying off the shelf, wouldn't you raise prices? Its basic economics 101, supply and demand charts and where is equilibrium.
      • Sort of kind of (Score:3, Insightful)

        by rsilvergun ( 571051 )
        We gave 10.5 trillion to the top 1%. They already had more money than Jesus so what do you think they did with it? Answer they bought a bunch of their competitors and jacked up prices.

        We've been allowing market consolidation for decades and making companies pinky swear they wouldn't raise prices in order to continue the consolidation trend. It was always going to bite us in the ass hard it was a question of when not if.

        COVID bit in the corporate profits massively as you might imagine and all that mo
        • Nominal profit increasing is not a sign of monopoly power. What you want to look at is increases in profit margin.

          Profit margin (return on investment) is what goes up when you abuse market power, not merely raw profit numbers. I haven't looked to see the trends in profit margin in detail. Also note that abuse isn't the only way to improve margin, so it's not even as clear-cut as looking at that number.

          You have to be diligent when looking at the numbers, I agree; because "profit" can look smaller if it's r

          • Their profit margins have gone up by the same amounts. So yeah it's monopolies. You're trying to draw me into an argument because you know you've already lost and by splitting hairs you hope to gish gallop your way out of this mess

            Are you just being an internet contrarian or you just have some sort of a weird fetish for defending corporations and giving all your money to them? You can't possibly be making anything financially off this mess. Nobody who posts three comments deep on slashdot is a financia
            • I think we are in agreement here? I was just checking that the statement was on margins, not on just nominal. I did just look at some data, and your claim that corporate profit margins grew by huge amounts doesn't seem to be true, at least not by https://www.gurufocus.com/economic_indicators/62/corporate-profit-margin-after-tax- [gurufocus.com]this measure.

              That data shows profit margins have been basically flat since October of 2021.

              Now that data appears to be aggregate, so there are definitely going to be some companies

        • They already had more money than Jesus

          Most people do.

      • by Anonymous Coward
        Bankrolled by the federal reserve.

        It's actually the Treasury that sells bonds. Did you miss the news about a possible federal government shutdown? How would that happen if the Federal Reserve were just "bankrolling"? Perhaps you should re-enroll in basic economics 101.
        • by Anonymous Coward

          The Federal Reserve is one of the big buyers of Treasury debt, it has 4.4 trillion right now, see the 3rd line (PDF): https://www.federalreserve.gov... [federalreserve.gov]

          It prints money to buy that stuff. It's not the sole holder, but it's a big one, like 16 percent. None of the other holders can print to buy, unless they are sovereign nations.

      • Why would Donald Trump do such a thing?

        • Trump plus Congress acting together. The feeling that we gotta do something and we gotta do it fast! Shove all the money out then slowly realize that it's going to the wrong places, start clamping down so that those who didn't need the help keep the money but the new business that actually need it can't get any. High activity based upon low information.

    • this is why inflation spiked

      Ah, no. Inflation spiked for ordinary macroeconomic reasons having to do with supply chain crunches reducing supply while tax cuts and stimulus payments boosted demand. When supply goes down, prices go up. When demand goes up, prices go up.

      Every time a mega corp screws up instead of being forced to compete they just take a mountain of cash from their untaxed income and use it to buy up the competitor.

      Assuming the summary is correct, Google didn't really buy a competitor, because the company they bought was failing, not competing.

      The same pattern here can be found in our food supply, automotive industry, heck even the housing industry.

      Got any actual examples of that happening?

    • Capital is better remunerated than labor. Way better. Given all the power capital has, it's not surprising. The power of labor used to reside in labor organizations. Most workers are not considered labor though, because they're "white collar" and may get a limited amount of worthless RSU as part of their compensation.

    • this is why inflation spiked

      Exactly! Just like how Led Zeppelin caused inflation in the 1970s. It's undeniable!

      (Don't believe any slightly more logical associations, folks!)

  • by Tablizer ( 95088 ) on Wednesday September 25, 2024 @11:33AM (#64816431) Journal

    ..."We're so desperate to win the AI market-share war that we decided to put up with Sheldon Neckbeard Cooper's many quirks. We'll kick his annoying ass out AFTER we win."

  • He also worked on crome did he not? And "....kicked off the AI boom...."?
  • by Baloo Uriza ( 1582831 ) <baloo@ursamundi.org> on Wednesday September 25, 2024 @11:57AM (#64816481) Homepage Journal

    AI is magic to consumers (and stops being magic and starts being something else the moment you explain it, exactly like magic).

    AI's aesthetic is this century's Italian Futurism to weird techbros and the far right.

    The faster this shit crashes like the value of Beanie Babies, the better off everyone else is.

    • Genuinely interested, what does the value of a Beanie Baby have to do with the welfare of those who are not interested in Beanie Babies?

    • Re: (Score:3, Insightful)

      by HiThere ( 15173 )

      AI is magic to consumers (and stops being magic and starts being something else the moment you explain it, exactly like magic).

      AI's aesthetic is this century's Italian Futurism to weird techbros and the far right.

      The faster this shit crashes like the value of Beanie Babies, the better off everyone else is.

      Your first sentence is correct.

      I've no opinion on Italian Futurism.

      Your third sentence is wrong. Even if it never gets any better it's going to severely alter a large number of jobs. This will be to the advantage of at least some people.

      • Why would it affect jobs long term? The state of the art is that AI chatbots are worthless, except for low value uses ("I'm bored, tell me a story"). It sucks to replace searches, as it takes more time to know if the made up bullshit AI response is accurate or not. AI is like having a below intelligence employee help out everyone at your company.

        "BobBot, if I replace part 3A with one that is 6 cents cheaper, how will that affect the product's margin?"
        "I cannot predict product succes, but I am certain tha

      • Your third sentence is wrong. Even if it never gets any better it's going to severely alter a large number of jobs. This will be to the advantage of at least some people.

        This is a far stronger argument in favor of a far more progressive tax structure, a high minimum wage, and universal basic income more than it makes an argument in favor of AI. Or even trying, since AI is up there with autonomous highway vehicles in terms of "NP complete shit that can't progress further than it already has".

  • They're obviously not spending enough; GenAI LLMs are still just glorified predictive text. Obviously, nothing actually close to self-awareness level AI is going to happen until they spend $trillions on even bigger nucular-powered, quantum data-farms. We must keep feeding the beast to appease the consciousness-granting gods!!!
    • >Obviously, nothing actually close to self-awareness level AI is going to happen until they spend $trillions on even bigger nucular-powered, quantum data-farms.

      AI can be reached within a few years using less than 20W of power. We know because newborns are pretty damn intelligent in actually useful ways after just a few years.

      Rather than working on the algorithms, we ought to be spending our money on the hardware. Emulating analog processes with binary switches is very wasteful.

      • But they're not emulating biological processes, which is what you need to do to get anywhere near the complexity & sophistication of even a rat. LLMs are essentially fancy predictive text; they calculate the statistical probability that one morpheme with follow another, then they spend 10,000's hours of human labour to put constraints on what's acceptable output & what isn't. Come to think of it, it's a bit more like a Bayesian inference engine built into a next-generation mechanical Turk. That isn'
    • Forget those gods, we're creating our own God here, with a capital G, made out of capital, and silicon, and gold, crafted into the form of a giant calf-eagle hybrid with tasteful blinking LEDs. This new AI God will tell us what to do and what the meaning of life is! All hail GodGPT66!

  • I remember when Google believed it was an engineering company.

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