Meta wanted to buy a $30 billion AI startup: report. What it is trying instead.
Meta Platforms stock has climbed this year in response to the social media company's progress with artificial-intelligence. Now, it is reportedly stepping up its efforts, trying to acquire a major AI start-up and recruiting new AI executives.
Meta looked to buy Safe Superintelligence earlier this year but was rebuffed by its founder Ilya Sutskever, CNBC reported late Thursday, citing people familiar with the matter. Safe Superintelligence was valued at $30 billion in a funding round in March.
Meta and Safe Superintelligence didn't immediately respond to requests for comment.
On the face of it, such an acquisition would have been an odd move. Safe Superintelligence hasn't released any products, as it concentrates on developing supersmart AI. Meta has also been getting along perfectly well on its own, with its stock up 19% so far this year.
The real attraction of such a deal likely would have been to get Sutskever and his key employees on board.
Sutskever was previously chief scientist at OpenAI, where he helped develop the technology behind ChatGPT. He left OpenAI last year following a break with its CEO Sam Altman, and subsequently launched Safe Superintelligence.
Thwarted in his efforts to bring Sutskever on board, Meta CEO Mark Zuckerberg has instead negotiated to recruit Safe Superintelligence's CEO Daniel Gross, as well as former GitHub CEO Nat Friedman, according to CNBC. Gross and Friedman are partners in the investment fund NFDG, which has backed several AI start-ups.
So far, Meta has relied on in-house AI models, as opposed to acquiring or funding an AI start-up as Microsoft has done with OpenAI and Amazon.com has with Anthropic. However, there have been signs that Zuckerberg feels Meta's AI team needs bolstering.
Last week, Meta completed an investment in Scale AI. The Wall Street Journal reported that Meta would pump $14 billion into the data-labeling company in exchange for a 49% stake and that Scale AI founder Alexandr Wang would join Meta.
The bigger picture here is that multiple AI companies have delayed the releases of their next flagship models amid concerns they don't show sufficient improvement. That suggests the industry's 'scaling law," the idea that larger and more complex models are automatically more intelligent, is breaking down.
Meta is among those struggling to make a breakthrough. Its 'Behemoth" model, originally meant to be released in April, is being delayed until fall or later, according to the Journal.
The response from AI companies has been the development of so-called reasoning models that break down problems step-by-step. However, a recent paper from researchers at Apple found 'fundamental limitations" in such models. At tasks beyond a certain level of complexity, these AIs suffered 'complete accuracy collapse," according to the researchers.
That suggests the industry will need to adopt new techniques to push AI to the next level of intelligence. Meta will hope that its new recruits can get there first.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
36 minutes ago
- Time of India
Apple talking to AI startup Perplexity, claims report and why it pulled down Google shares
Apple Inc. is exploring a potential acquisition of AI startup Perplexity AI to bolster its artificial intelligence capabilities, according to Bloomberg, citing sources familiar with the matter. The discussions, led by Adrian Perica, Apple's head of mergers and acquisitions, alongside services chief Eddy Cue and key AI decision-makers, are in early stages and may not result in a formal offer, the sources said, speaking anonymously due to the private nature of the talks. Apple buying Perplexity will be the company's largest-acquisition so far A deal for Perplexity, recently valued at $14 billion, would mark Apple's largest acquisition ever, surpassing its $3 billion purchase of Beats in 2014. The move could help Apple develop an AI-powered search engine, addressing concerns over its $20 billion annual deal with Google, which faces scrutiny from US antitrust regulators. No discussions have occurred with Perplexity's management, and the startup stated it has 'no knowledge of any current or future M&A discussions.' Apple declined to comment. Why Apple-Perplexity news pulled down Google stock Google shares reversed gains and fell nearly 1% in late trading after Bloomberg reported on Apple's Perplexity discussions. The news sparked investor concerns about Google's long-standing dominance in the search market, particularly its lucrative $20 billion annual deal to remain the default search engine on Apple's Safari browser. Apple's senior vice president, Eddy Cue, revealed during Google's antitrust trial that Safari search volumes declined for the first time in April, attributing this to growing user preference for AI-driven search alternatives like Perplexity and ChatGPT. If Apple acquires Perplexity, valued at $14 billion, it could reduce reliance on Google, threatening the latter's search advertising revenue, which accounted for $162 billion of Alphabet's $283 billion in 2022 revenue. The potential loss of this partnership, combined with the U.S. Department of Justice's push to curb Google's search monopoly, heightened market fears. Additionally, Perplexity's 20% month-over-month query growth signals a shift toward AI search, challenging Google's traditional model despite its own AI efforts like Gemini. Why Apple may be planning to buy Perplexity Perplexity's real-time, web-based question-answering service could enhance Apple's efforts to compete in generative AI, where it trails rivals. Apple's recent AI offerings, unveiled at its Worldwide Developers Conference, include live translation and a partnership with OpenAI for ChatGPT-based image generation, but a revamped Siri has been delayed until next spring. Acquiring Perplexity could provide Apple with AI talent, a recognized brand, and a consumer product to strengthen its position. Alternatively, Apple has considered partnering with Perplexity, potentially integrating its technology into Safari and Siri. The companies have met multiple times, with Apple's AI team evaluating Perplexity's technology, signaling interest in a closer relationship. Meta and Perplexity talks failed The news follows Meta Platforms Inc.'s failed attempt to acquire Perplexity earlier this year, after which Meta purchased a 49% stake in Scale AI for $14.3 billion. Apple and Meta are also competing for talent, with both companies vying to hire Daniel Gross, co-founder of Safe Superintelligence Inc. and a former Apple acquisition via his startup Cue in 2013. Google shares dipped nearly 1% in late trading after the report. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
41 minutes ago
- The Hindu
Apple executives held internal talks about buying Perplexity: Report
Apple executives have held internal talks about potentially bidding for artificial intelligence startup Perplexity, Bloomberg News reported on Friday, citing people with knowledge of the matter. The discussions are at an early stage and may not lead to an offer, the report said, adding that the tech behemoth's executives have not discussed a bid with Perplexity's management. Apple and Perplexity did not immediately respond to Reuters' requests for comment. Big tech companies are doubling down investments to enhance AI capabilities and support growing demand for AI-powered services to maintain competitive leadership in the rapidly evolving tech landscape. Bloomberg News reported earlier on Friday that Meta Platforms tried to buy Perplexity earlier this year. Meta announced a $14.8 billion investment in Scale AI last week and hired Scale AI CEO Alexandr Wang to lead its new superintelligence unit. Adrian Perica, Apple's head of mergers and acquisitions, has weighed the idea with services chief Eddy Cue and top AI decision-makers, as per the report. The iPhone maker reportedly plans to integrate AI-driven search capabilities- such as Perplexity AI- into its Safari browser, potentially moving away from its longstanding partnership with Alphabet's Google. Banning Google from paying companies to be the default search engine is among the remedies that the U.S. Justice Department has proposed to break up its dominance in online search. While traditional search engines such as Google still dominate global market share, AI-powered search options including Perplexity and ChatGPT are rapidly gaining prominence this year and seeing rising user adoption, especially among younger generations. Perplexity recently completed a funding round that valued it at $14 billion, according to the Bloomberg News report on Friday. A deal close to that value would be the largest acquisition for Apple till date. The Nvidia-backed startup provides artificial intelligence search tools that deliver information summaries to users, similar to OpenAI's ChatGPT and Google's Gemini.
Time of India
44 minutes ago
- Time of India
Apple executives held internal talks about buying Perplexity: Report
Apple executives have held internal talks about potentially bidding for artificial intelligence startup Perplexity, Bloomberg News reported on Friday, citing people with knowledge of the matter. The discussions are at an early stage and may not lead to an offer, the report said, adding that the tech behemoth's executives have not discussed a bid with Perplexity's management. Apple and Perplexity did not immediately respond to Reuters' requests for comment. Big tech companies are doubling down investments to enhance AI capabilities and support growing demand for AI-powered services to maintain competitive leadership in the rapidly evolving tech landscape. Bloomberg News reported earlier on Friday that Meta Platforms tried to buy Perplexity earlier this year. Meta announced a $14.8 billion investment in Scale AI last week and hired Scale AI CEO Alexandr Wang to lead its new superintelligence unit. Adrian Perica, Apple's head of mergers and acquisitions, has weighed the idea with services chief Eddy Cue and top AI decision-makers, as per the report. The iPhone maker reportedly plans to integrate AI-driven search capabilities- such as Perplexity AI- into its Safari browser, potentially moving away from its longstanding partnership with Alphabet's Google. Banning Google from paying companies to be the default search engine is among the remedies that the U.S. Justice Department has proposed to break up its dominance in online search. While traditional search engines such as Google still dominate global market share, AI-powered search options including Perplexity and ChatGPT are rapidly gaining prominence this year and seeing rising user adoption, especially among younger generations. Perplexity recently completed a funding round that valued it at $14 billion, according to the Bloomberg News report on Friday. A deal close to that value would be the largest acquisition for Apple till date. The Nvidia-backed startup provides artificial intelligence search tools that deliver information summaries to users, similar to OpenAI's ChatGPT and Google's Gemini.
