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Here's what’s driving the news today:

• Data providers are biting back

• Stability AI is caught in more drama

• Actors mention AI as part of their strike position

• China clarifies its new AI mandate

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PEOPLE GET DEFENSIVE OVER THEIR DATA

You knew it all along. For years, you’ve heard the moniker “data is the new oil.” But that felt abstract and distant.

Connecting with friends, expressing your creativity, and sharing yourself online was worth a few advertisers knowing more about your likes and dislikes.

Heck, if you get a new vacuum cleaner and show to watch from all those companies knowing your data, then it can’t be all bad, right?

The times, they are a changing.

Companies like Meta, Google, and Microsoft did not play pretend. They scraped public data for years, and one reason was to train AI models.

Again, it didn’t feel malicious, and we all seemed to agree with this disclaimer. However, this was BGPT (Before Generative Pretrained Transformers), more specifically, before a chatbot from OpenAI shunted us into a new reality.

Now artists, fan fiction writers, news companies, and social media communities are changing their minds. They won’t give up any more data for no payback.

The data revolt is upon us.

All these people wised up to what data’s value is, and this change of heart will slow down AI development. Think about it, OpenAI is no longer a non-profit darling. 

It’s a juggernaut coming for these people’s jobs.

That’s the effect of generative AI on the people who created this data without the foresight to see what it would become.

The training for models is expensive, and that bill just ballooned. Lawsuits will take their toll; every network with some data will follow Reddit’s path and charge for access.

The problems are beginning for AI companies, not ending. The road to AGI is not paved with singalongs and handholding. It’s decided with cash and courtrooms.

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The Sweaty Startup → for anyone interested in making money & becoming better at managing people

A Smart Bear → a unicorn founder discusses strategy & decision-making for building

Life-Changing Concepts → gives you an unfair advantage in business using mental models

Master ChatGPT → an e-book to take you from zero to hero

MORE DRAMA AROUND STABILITY AI

Emad Mostaque, the CEO of Stability AI, is not having a great year.

First, Stability AI gets sued by Getty Images for copyright infringement. Then, Forbes accuses Mostaque of misleading investors and leading a poor work culture.

Now, Cyrus Hodes, a former Co-founder, is suing the company for deceiving him and misrepresenting the company's value. 

For context, Hodes was working at the startup when their core idea was using generative AI to help governments handle COVID-19. As the company moved towards a different future, he left but maintained his 15% stake.

Mostaque convinced him to sell his shares back to Stability AI for $100. He told Hodes that they were worthless. Shortly after, the startup raised $101 million in a seed round.

Yeah, that pissed Hodes off.  

But why should you care? Well, Stable Diffusion is a big part of the generative AI ecosystem. It provides people with an open-source alternative to DALL-E or Midjourney.

Put another way: Stable Diffusion is the Linux to DALL-E’s MacOS. They support a ton of independent researchers.

However, Mostaque runs Stability AI at a different level of competence than Linux.

The CEO is embroiling the company in drama and lawsuits that continue to pile on. That distraction keeps people from building and drains the company’s stockpile of cash.

Remember, training AI is getting more expensive.

Handling lawsuits and getting a poor reputation can tank you at this stage.

However, Stability AI will remain worth the price if Stable Diffusion leads its part of the market. No one will pressure the leadership team to change course as long as they find a way to make revenue from their successful platform.

Quick Nuggets

🫵 AI can threaten your identity if you let it

4️⃣ 4 ways Generative AI can work for you

🔨 AI tools help us with landslide forecasting

🎭 Actors join the picket line with AI on the tip of their tongue

🟧 Y Combinator offers early interviews to AI startups

📜 AI tried writing a housing bill that critics say is unintelligible

🇨🇳 China’s new mandate decrees that all AI models must follow the “core values of socialism”

🔮 AI doomsday scenarios are gaining a foothold in Silicon Valley

💵 Characte.AI plans to raise more funds in response to Meta’s rival starting up

🍿 If you watch Oppenheimer this weekend, remember that Christopher Nolan intends for it to be a warning to Silicon Valley

🔥 Fresh Products

• Questflow - find, build, & use AI agents in workflow automation (link)

• Design My Room - snap a photo & let AI redesign your room (link)

• Stockimg - new generation WordArt (link)

• SplitSong - split YouTube music into vocals & instruments (link)

• Copilot2trip - personalized AI-powered travel assistant w/ maps (link)

• Sweep - an AI-powered junior dev on your team (link)

• MakeMyWeb - your stunning, AI-tailored, responsive website (link)

• Noworry - chat w/ AI psychologist & mental health activities (link)

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