GPT takes water?π°β
Think before you ChatGPT. Why? Each ChatGPT convo = about a 16oz water sip. Goldman Sachs - AI party ain't no bubble. No Grammy for that AI-mixtape. Stoner Cats gets a timeout. Alibaba's own ChatGPT.
Hello, y'all. What song are you FEELING right now? Find out π ImFeeling
Now, hereβs some real winnersππ»
Hello, y'all. This is The Token Dispatch π you can hit us on telegram π€
Des Moines, Iowa β As technological giants like Microsoft and Google zealously plunge into the realm of generative AI, there's a cost lurking beneath the digital surface.
Behind the life-will-not-be-same-again products like ChatGPT lies an insatiable thirst: WATER.
And you thought itβs just them jobs that are being gobbled by AI β¦ π€¦ββοΈ
Each session with ChatGPT, involving 5 to 50 prompts, uses approximately 500 millilitres of water.
The Unseen Costs of AI Training π
Water Overload: Training sophisticated models like GPT-4 generates immense heat. The remedy? Cooling towers thirstily guzzling water sourced from Iowa's Raccoon and Des Moines rivers.
Microsoft's Rising Tide: Microsoft's water consumption soared by 34% between 2021 and 2022, a surge largely attributed to its AI endeavours and partnership with OpenAI. To visualise, it's a leap equivalent to over 2,500 Olympic-sized swimming pools.
AI's Underlying Footprint π¦Ά ChatGPT isn't just digital. Each query you pose might be draining about a 16-ounce water bottle. This includes indirect water use, like cooling power plants that energise the data centres.
Iowa's Tech Oasis
Unknown to many, Iowa, with its vast stretches of cornfields, has become a pivotal location for Microsoft and OpenAI. Specifically, West Des Moines houses the powerful data centres where ChatGPT's elder sibling, GPT-4, was trained.
Microsoft's presence in West Des Moines isn't new, but the specifics remained shrouded in mystery. It was only recently when Microsoft's president, Brad Smith, spilled the beans, revealing the state's crucial role in AI development.
The statement? "It was really made in Iowa."
The Environmentally Conscious Choice?
Interestingly, West Des Moines offers an ecological advantage for AI training. Unlike Microsoft's water-chugging Arizona data centres, Iowa's climate allows for natural air cooling most of the year. This method is activated until temperatures breach 85 degrees Fahrenheit. However, during peak summer, the demand becomes evident. In July 2022, Microsoft's data centres consumed about 6% of the total water in the district, revealing a pressing concern for local water supplies.
Goldman Sachs On AI
Goldman Sachs is crystal clear - the rapid growth in the AI market and the surge in tech stocks don't equate to a bubble. They believe that the current trends indicate the beginning of a new era in technology.
Comparisons with Past Bubbles π Some analysts see similarities between the current AI stock surge and the dot-com bubble of the late 90s. However, Peter Oppenheimer, chief global equity strategist at Goldman Sachs, stresses that we are in the nascent stages of a groundbreaking tech cycle.
Mixed Voices π£ Goldman Sachs is bullish on AI, but not everyone. Emad Mostaque, CEO of Stability AI, warned of a potential "dot AI" bubble, suggesting it could be more volatile than even the crypto market. Nonetheless, he acknowledges AI's potential, especially in fields like banking.
Future Projections π Goldman Sachs is confident about the future of AI, estimating global investments to reach $200 billion by 2025. Generative AI, which specialises in content creation using large language models, could contribute up to $4.4 trillion to the global economy.
Meta's new AI model
Meta is reportedly developing a new AI model to rival OpenAI's most advanced system. The new model is said to be "several times" more powerful than Meta's current Llama 2 model. Meta plans to open-source the new system, allowing other companies to build AI tools. The company is also building data centres and acquiring Nvidia's H100 semiconductor chips for the project. Training for the model is expected to begin in early 2024, with a release date sometime next year.
Tesla's AI Leap: A Threat to Nvidia?
Tesla's stock jumped 10% after Morgan Stanley analyst Adam Jonas predicted that Tesla's AI chips will outperform Nvidia's, positioning the automaker as a strong rival. Jonas raised his price target for Tesla and highlighted the potential growth catalyst of Tesla's custom supercomputing system, Dojo, which could add $500 billion to the company's value. Tesla began working on Dojo to address a shortage of GPUs supplied by Nvidia. Jonas believes that with Dojo, Tesla can monetise its vehicle software sooner and at higher recurring revenue rates.
TTD Exchanges π¦
FTX's Liquidation Efforts
FTX, the collapsed digital asset exchange, has received court approval to sell billions of dollars worth of Bitcoin, Ethereum, Solana, and other assets.
Read: FTX big sale
The judge overseeing the bankruptcy proceedings has allowed FTX to sell $3.4 billion in crypto assets, with Galaxy Digital serving as the investment manager for the sale.
FTX will initially cap its selling at $100 million worth of tokens per week, with the possibility of increasing it to $200 million on an individual token basis. The proceeds from the sale will help repay creditors and fill the $7 billion hole left by the exchange's alleged criminal mismanagement.
Coinbase and Bitcoin's Lightning Network
Coinbase CEO Brian Armstrong has confirmed that the crypto exchange will integrate Bitcoin's Lightning Network, calling bitcoin the "most important asset in crypto."
Armstrong stated that the decision to integrate Lightning was made after a consultation process and that it will take some time to implement. The Lightning Network is a second-layer solution built on top of the Bitcoin blockchain, designed to enable fast and low-cost transactions. Lightning Network adoption has been growing, with a current total capacity of nearly 5,000 bitcoin, but it has fallen 12.5% from its peak in July.
Response to US Inflation
Despite rising inflation in the US, Bitcoin and Ethereum have held their ground in August. The Consumer Price Index (CPI) rose 3.7% in the 12 months through August, slightly above expectations.
However, cryptocurrency prices traded sideways, with Bitcoin remaining flat at around $26,100 and Ethereum falling 0.5% to around $1,600. The Federal Reserve will consider the CPI report, along with other factors, ahead of its next interest rate announcement. Higher interest rates have historically dampened economic growth and weighed on cryptocurrencies, but core inflation is trending in the right direction, reducing the likelihood of a rate hike.
Whereβs ETF?π¨
Nasdaq is preparing to list a spot Bitcoin exchange-traded fund (ETF), according to Giang Bui, Nasdaq's Head of U.S. Equities & Exchange-Traded Products.ππ»
TTD AIπ
Grammy Snubs AI-Generated Drake Song π
The CEO of the Recording Academy, Harvey Mason Jr., has clarified that an artificial intelligence (AI)-generated Drake song is not eligible for a Grammy nomination due to copyright issues. Mason Jr. emphasised that the vocals were not legally obtained or cleared by the label or artist, and the song is not commercially available.
He stated that the Academy supports and protects human artists and creators. Additionally, for a track to be eligible for an award, it must be commercially available on major streaming platforms. The AI-generated track was removed from platforms due to copyright violations and lack of approval.
IWFβs Warningπ
The Internet Watch Foundation (IWF) has warned that paedophile rings are using AI technology to create and distribute child sexual abuse material (CSAM) on the dark web. These rings use open-source AI models that can be downloaded and run locally on personal computers, making it difficult for law enforcement to detect and control the spread of such content. The IWF is concerned that if AI-generated CSAM becomes indistinguishable from real imagery, it could waste valuable time and resources of analysts trying to identify and protect non-existent children.
Alibaba Releases Tongyi Qianwen in China π¨π³π€
Alibaba has announced the public release of its large language model, Tongyi Qianwen, in China. The AI system, similar to OpenAI's ChatGPT, was previously only available to a limited group of users during its beta test phase. The release comes as China eases restrictions on AI technologies, requiring a vetting and certification process for public release.
The updated regulations include provisions such as barring the generation of images of China's president and addressing objectionable content within three months. In contrast, the United States is still in the early stages of regulating AI technologies.
TTD Stoner Cats πΌ
Following the recent action from the U.S. Securities and Exchange Commission (SEC) against the animated NFT series "Stoner Cats," many wonder about the fate of the show and its associated NFTs.
The SEC's Decision: The SEC declared that the series, produced by Mila Kunis's studio, violated federal securities laws when offering NFTs as viewing passes for its content.
Consequently, the show's creators have agreed to pay a $1 million fine. However, this decision has left a cloud of uncertainty around the future of the Stoner Cats NFT community and its six-episode content.
Background
Initial NFT Sale Price: 0.35 ETH, approximately $800 in July 2021.
Amount Raised: Over $8 million within 35 minutes by selling 10,420 tokens. Secondary sales then exceeded $20 million, as per SEC.
Penalty: Stoner Cats 2 LLC has consented to pay a $1 million penalty and will also delete any remaining NFTs.
Star Power: Mila Kunis spearheaded the project, which boasted voices from celebrities like Ashton Kutcher, Chris Rock, Seth McFarlane, Jane Fonda, and even Ethereum's founder, Vitalik Buterin.
Destruction of Tokens: The SEC has stipulated that all NFTs held by Stoner Cats be destroyed. This destruction, or "burning," involves sending the NFTs to a digital wallet with no private key access, rendering them forever inaccessible.
Tokens in Circulation: While Stoner Cats can only destroy the tokens they own, the over 5,000 unique wallet holders with Stoner Cats NFTs don't need to worry about their tokens being destroyed without their consent.
Compensation for NFT Purchasers: The SEC has indicated that the $1 million penalty will be used to create a "Fair Fund" to repay "injured investors" of Stoner Cats NFTs. The exact distribution mechanism and eligibility criteria remain undefined.
Current Market Response: Interestingly, Stoner Cats NFTs have seen a surge in demand, perhaps fuelled by the hope of compensation. Then, the floor price of the collection jumped by 163% in just three hours, reaching approximately $79 in Ethereum.
TTD Wallet π
Telegram is making its foray into the crypto space by reintroducing its association with The Open Network (TON) after previously distancing itself due to legal complications.
The Announcement
TON foundation confirmed that Telegram has integrated a self-custodial digital wallet named TON Space.
This wallet is now available for Telegram's vast user base, approx. 800 million.
Projects that are developed on TON will have priority access to Telegram's advertising platform, Telegram Ads.
Access and Availability
Currently, users can access the wallet feature in the Telegram settings.
A broader global release is planned for November, although the U.S. and a few other countries will be excluded from this rollout.
Background
In 2020, Telegram abandoned its involvement in TON due to a lawsuit from the U.S. Securities and Exchange Commission (SEC).
This lawsuit was over the $1.7 billion raised from TON's initial coin offering (ICO) with the token named Grams, which was alleged to be an offering of unregistered securities.
Telegram eventually settled with the SEC, repaying unspent funds to investors and paying an $18.5 million fine.
At the time, Telegram had made a commitment to refund the money to its users if the platform didn't launch by a specific date in spring 2020.
TON's Persistence
Several community organizations, including FreeTon, NewTON, and the TON Chinese Community, have strived to keep TON's vision alive after Telegram's withdrawal.
Telegram's Chief Investment Officer, John Hyman, expressed that giving users control over their identities and assets is in line with the company's philosophy.
The TON Foundation recently established itself in Switzerland as a registered nonprofit.
TTD Surfer π
Ripple, the blockchain payments firm, plans to do 80% of its hiring outside the United States this year, according to CEO Brad Garlinghouse.
Paxos, the issuer of stablecoins and operator of a crypto brokerage firm, has confirmed that it was responsible for a $500,000 mistaken Bitcoin transaction.
Crypto exchange CoinEx has temporarily halted withdrawals after detecting suspicious activity on its platform.
If you like us, if you don't like us .. either ways do tell usβοΈ
If you dig what we do, show us love on Twitter, Instagram & Threadsπ€
So long. OKAY? β