[Premium]: An AI Noble Prize, Defeating Hallucinations, Air Fryers & The Ottoman Empire, & More

TLDR;

Small correction on Sunday’s Leaders article. As pointed out by Jack Farmer, Academic Director at the New York Institute of Finance (NYIF) and supporter of this newsletter, I made a mistake in one of the data points I gave when analyzing the SaaS market.

I said that the S&P500’s average Price-to-Revenue multiple was 23 when it’s, in fact, 3 (the Price-to-Earnings ratio is indeed 23). While the point still stands (SaaS companies aren’t very desirable to investors today), it’s great to see that among my readers are talented people who will not hesitate to call out my mistakes, for which I’m deeply thankful.

Technology:

👑 Move Aside OpenAI, Meta’s MovieGen is the New King

🤔 The First Noble Physics Prize to an AI Researcher

🥳 Entropy, The Cure to Hallucinations?

🔣 The “Mozart of Maths” Gives His View on AI

🫣 Comparing Air Fryers to the Ottoman Empire

Markets:

💰 Brace Yourself for a New Era of AI Funding

🔮 Amazon Develops AI “Culture Coach”

🕊️ The Worst Tweet in a While

Product:

🐉 The New King, Dracarys 2

🤖 Lovable’s GPT Engineer is Impressive

AI VIDEO GENERATION

Move Aside OpenAI, Meta’s MovieGen is the New 👑

Banger after banger. Meta AI is really on a tear lately. Now, they have released MovieGen, a video generation tool that beats every other video generation model, even OpenAI Sora, in most benchmarks.

Among the multiple features, we have one that’s pretty scary. They can generate hyper-realistic videos from images (gif above), taking deep fakes to a completely different level, which is why they have yet to make the model public (just like OpenAI hasn’t released Sora).

This link includes several other video demonstrations that will impress even the harshest AI skeptics.

TheWhiteBox’s take:

Crucially, they have released the research behind the model, which means we now finally have access to fundamental research on building a state-of-the-art video generation model.

This is probably the most significant open-source release in years, so we’ll explore the paper in depth in this newsletter soon.

REWARDS

The First Noble Physics Prize to an AI Researcher

Geoffrey Hinton and John J. Hopfield have received the first-ever Nobel prize from AI scientists, as published by the Academy themselves.

TheWhiteBox’s take:

Amazing milestone for AI, although I don’t fully understand what Machine Learning has to do with physics. Both Hopfield and Hinton were very early proponents of neural networks, the underlying architecture that has fueled most of AI’s breakthroughs in the last decades.

Here are both researchers’ most cited papers:

Hopfield et al.

Hinton et al.

FRONTIER RESEARCH

Entropy, The Cure to Hallucinations?

An anonymous researcher has published highly promising data on a new decoding method (how the large language models, or LLMs, generate the data) called Entropix that considerably reduces hallucinations.

This news is so recent that we don’t even have a paper, just a GitHub repository. Still, the AI industry on X (where most researchers publish their thoughts) is going wild for it, with some people are…

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