OpenAI Offers Unlimited Sora Access, AI Study Explores Spider Monkeys, Apple Nears $4 Trillion Milestone, FTC Targets AI-Generated Reviews, and more...
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Good morning. It's December 23rd, and this is your daily brief in AI. Here's everything you need to know. OpenAI is making waves this holiday season by offering unlimited access to its AI video generator, Sora, for all ChatGPT Plus subscribers. This initiative, announced by CEO Sam Altman, began on December 23rd, 2024, and is made possible due to decreased GPU demand as many users take a break for the holidays.

Sora, which launched just weeks prior, allows users to generate videos from text prompts. It has quickly garnered attention for its user-friendly interface and rapid video generation capabilities. The platform includes features such as a storyboard tool, enabling users to combine multiple videos into longer sequences, enhancing creativity and productivity. While users can enjoy unlimited video generation, there are some restrictions in place.

These include limits on video resolution and a prohibition on animating images of people. The unlimited access operates through a relaxed queue, which may lead to longer video generation times, but it allows users to explore Sora's features more freely during this festive period. Despite the rise of competitors, Sora continues to excel in speed, often completing tasks in under a minute.

For those considering alternatives after the promotion, services like Runway and Hyper provide different pricing models for video generation. Looking ahead, OpenAI plans to introduce dedicated pricing for Sora in the new year, potentially offering an unlimited subscription separate from ChatGPT. This holiday offer not only alleviates server load but also encourages users to create high-quality 720p resolution videos.

As we move into 2025, the AI video generation landscape is expected to evolve significantly, with new innovations and competitors on the horizon. In a groundbreaking initiative, biologist Jenna Lawson has launched one of the largest acoustic wildlife studies in Costa Rica's Osa Peninsula, focusing on the endangered Jefferies spider monkeys.

This project, which began in 2021, employs artificial intelligence to analyze recorded sounds, providing crucial insights into the monkeys' behavior and habitat use. Lawson noted that the use of audio monitors allows for more accurate behavioral studies while minimizing human influence on the natural behaviors of the monkeys.

The distinctive calls captured by these monitors enable researchers to gather essential ecological data about the spider monkeys, contributing to a deeper understanding of their natural behavior. Additionally, this project aims to assess the impact of deforestation on various species, including jaguars and spider monkeys, with plans to expand monitoring efforts globally by late 2025.

A recent study highlighted the alarming statistic that 28% of all plant and animal species face extinction, emphasizing the urgent need for advanced wildlife monitoring technologies, such as AI-assisted surveillance. In response to these challenges, Microsoft is developing Sparrow devices, which are set to be deployed globally by late 2025.

These devices will monitor ecosystems while protecting sensitive location data from poachers and can operate for years on solar power, transmitting data via low-Earth orbit satellites. Initial tests are planned in Colombia's Magdalena River jungle. However, challenges remain in deploying these devices across various ecosystems, including environmental conditions and wildlife interactions that may affect their functionality.

Lawson's research, published by the Royal Society of London, indicated that spider monkeys avoid human-disturbed areas, suggesting current wildlife corridors may not be effective. Given their sensitivity to human presence and habitat changes, spider monkeys are critical indicators of forest health, making their conservation efforts essential.

The study utilized 350 audio monitors, capturing forest sounds over a week, and produced vast amounts of data analyzed through AI, revealing concerning insights about the endangered spider monkey population. Apple is on the brink of a historic milestone, aiming for a $4 trillion stock market valuation.

This surge is largely fueled by investor optimism surrounding the company's advancements in artificial intelligence, particularly as it seeks to rejuvenate sluggish iPhone sales. The tech giant is anticipating overall revenue growth for the upcoming fiscal first quarter, reflecting a strong confidence in its market strategy. Since early November 2024, Apple shares have surged approximately 16%, adding around $500 billion to its market capitalization.

In December, Apple initiated the integration of OpenAI's ChatGPT into its devices, aligning with a broader initiative to incorporate generative AI across its applications. Apple is positioning its AI features, branded as Apple Intelligence, as a key driver to boost sales, although some analysts caution that more significant innovations may be required to maintain consumer interest.

With 2 billion iOS devices and 1.5 billion iPhones currently in use worldwide, Apple has considerable opportunities to leverage AI integration to enhance its sales. Notably, around 300 million iPhones in circulation have not been upgraded in the past four years, indicating a substantial potential market.

Wedbush analysts suggest that the success of the iPhone 16 during the holiday season could ignite a growth renaissance for Apple over the next 12 to 18 months. Despite facing criticism for its slower AI strategy compared to competitors like Microsoft and Alphabet, Apple is now making notable progress in the AI domain.

The recent increase in Apple's shares has elevated its price-to-earnings ratio to 33.5, the highest in nearly three years, surpassing those of Microsoft and Nvidia. However, Berkshire Hathaway has sold some of its Apple shares this year, citing concerns over high valuations in the stock market. Despite the recent volatility, technology stocks like Apple continue to be viewed as a defensive sector due to their earnings growth potential.

The rise of AI-generated reviews is reshaping the landscape of online feedback, making it increasingly difficult for consumers to identify genuine opinions. A recent analysis by the Transparency Company has revealed that nearly 14% of 73 million reviews across various sectors, including home and medical services, are likely fake, with 2.3 million potentially generated by AI.

Experts, including investor Maury Blackman, have noted that generative AI has become a powerful tool for scammers, leading to a significant increase in deceptive reviews since mid-2023. DoubleVerify has reported a notable rise in mobile and smart TV apps that utilize AI-generated reviews, often misleading users into downloading harmful applications.

In response to the growing issue of fraudulent reviews, the Federal Trade Commission, or FTC, has taken legal action against companies like Rytr, which was sued for its role in facilitating the creation of fake reviews. The FTC's ban on fake reviews, effective since October 2024, allows for penalties against violators, although tech companies are not held legally responsible for user-generated content.

Despite claims from tech companies about blocking many fraudulent reviews, experts argue that these efforts are insufficient against the overwhelming volume of fake reviews still present. To combat review fraud, the Coalition for Trusted Reviews has been formed by major companies to share best practices and enhance AI detection systems,

Fake reviews are not confined to one sector. They are widespread across various industries, including e-commerce, lodging, restaurants, and medical care. While some individuals utilize AI tools to enhance their legitimate reviews, particularly non-native English speakers seeking better language accuracy, the overall impact of AI on review integrity remains a significant concern.

Research indicates that even experts struggle to differentiate between AI-generated and human-written reviews, with detection tools often failing on shorter texts typical of reviews. Furthermore, businesses sometimes incentivize customers with rewards like gift cards to leave positive reviews, complicating the authenticity of online feedback even further.

Broadcom is making waves in the AI sector, with its revenue skyrocketing from $3.8 billion last year to an impressive $12.2 billion in fiscal year 2024. This growth is largely attributed to the company's commanding share of the application-specific integrated circuits market, controlling between 55% and 60%.

Looking ahead, Broadcom estimates that the serviceable, addressable market for custom AI and networking chips could reach between $60 billion and $90 billion by fiscal year 2027. In a contrasting move, Stephen Yu, portfolio manager of the Blue Whale Growth Fund, has reduced his investment in NVIDIA, pointing to challenges larger firms face in achieving substantial growth.

Major tech companies like Microsoft, Meta, and Google are increasingly opting to design their own AI chips, which diminishes their reliance on NVIDIA. Despite NVIDIA's impressive performance, its stock is viewed as expensive, with a price-to-sales ratio of 29 and an earnings multiple of 54, significantly higher than the tech sector averages of 8.2 and a standard earnings multiple.

Yu suggests that for NVIDIA to match Broadcom's projected growth, it would need to add $1.5 trillion to its market value, positioning Broadcom as a more attractive investment for those seeking high returns in the AI sector. The competition in the AI chip market is intensifying, with Broadcom emerging as a formidable challenger to NVIDIA, bolstered by strategic partnerships and innovative chip solutions.

Broadcom's AI chips are being developed in collaboration with major players such as Meta, Alphabet, and ByteDance, further solidifying its market position. Analysts are optimistic about Broadcom's future, forecasting a 19% revenue increase and a 28% rise in earnings per share for the current fiscal year.

The company's organic revenue growth, excluding VMware acquisition revenue, was 9%, with projections of $14.6 billion in revenue for the first quarter of fiscal year 2025, reflecting a 22% increase from the previous year. However, amidst this impressive performance, some investors are considering profit-taking strategies, indicating a cautious approach as the company continues to grow.

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