Meta Unveils More Cautious Approach to ChatGPT Frenzy

A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier
A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier
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Meta Unveils More Cautious Approach to ChatGPT Frenzy

A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier
A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier

Facebook-owner Meta on Friday unveiled its own version of the artificial intelligence behind apps such as ChatGPT, saying it would give access to researchers to find fixes to the technology's potential dangers.

Meta described its own AI, called LLaMA, as a "smaller, more performant" model designed to "help researchers advance their work," in what could be seen as veiled criticism of Microsoft's decision to release the technology widely, while keeping the programming code secret.

Microsoft-backed ChatGPT has taken the world by storm with its ability to generate finely crafted texts such as essays or poems in just seconds using technology known as large language models (or LLM).

LLM is part of a field known as generative AI that also includes the capacity to execute images, designs or programming code almost instantaneously upon a simple request.

Usually the more staid actor in big tech, Microsoft has deepened its partnership with OpenAI, the creator of ChatGPT, and earlier this month announced the technology would be integrated into its Bing search engine as well as the Edge browser.

Google, seeing a sudden threat to the dominance of its search engine, quickly announced it would release its own language AI, known as Bard, shortly, AFP reported.

But reports of disturbing exchanges with Microsoft's Bing chatbot -- including it issuing threats and speaking of desires to steal nuclear code or lure one user from his wife -- went viral, raising alarm bells that the technology was not ready.

Meta said these problems, sometimes called hallucinations, could be better remedied if researchers had improved access to the expensive technology.

Thorough research "remains limited because of the resources that are required to train and run such large models," the company said.

This was hindering efforts "to improve their robustness and mitigate known issues, such as bias, toxicity, and the potential for generating misinformation," Meta said.

OpenAI and Microsoft strictly limit access to the technology behind their chatbots, drawing criticism that they are choosing potential profits over improving the technology more quickly for society.

"By sharing the code for LLaMA, other researchers can more easily test new approaches to limiting or eliminating these problems," Meta said.



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.