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The Alibaba office building in Nanjing, Jiangsu province, China, on Aug 28, 2024.

CFOTO | Future Publishing | Getty Images

Alibaba Cloud launched Thursday its latest AI model in its “Qwen series,” as large language model competition in China continues to heat up following the “DeepSeek moment.”

The new “Qwen2.5-Omni-7B” is a multimodal model, which means it can process inputs, including text, images, audio and videos, while generating real-time text and natural speech responses, according to an announcement on Alibaba Cloud’s website. 

The company says that the model can be deployed on edge devices like mobile phones, offering high efficiency without compromising performance. 

“This unique combination makes it the perfect foundation for developing agile, cost-effective AI agents that deliver tangible value, especially intelligent voice applications,” Alibaba said. 

For example, it could be used to help a visually impaired person navigate their environment through real-time audio description, the company added. 

The new model is open-sourced on the platforms Hugging Face and Github, following a growing trend in China after DeepSeek made its breakthrough R1 model open-source. 

Open-source generally refers to software in which the source code is made freely available on the web for possible modification and redistribution. Over the past years, Alibaba Cloud says it has open-sourced over 200 generative AI models.

Amid China’s AI fervor accelerated by DeepSeek, Alibaba and other generative AI competitors have been releasing new, cost-effective models and products at an unprecedented pace. 

Last week, Chinese tech giant Baidu released a new multimodal foundational model and its first reasoning-focused model. 

Alibaba, meanwhile, debuted its updated Qwen 2.5 artificial intelligence model in late January and released a new version of its AI assistant tool Quark earlier this month. 

The company has strongly committed to its AI strategy, announcing last month a plan to invest $53 billion in its cloud computing and AI infrastructure over the next three years, exceeding what it spent in the space over the past decade. 

Kai Wang, Asia senior equity analyst at Morningstar, told CNBC that large Chinese tech players such as Alibaba, which build data centers to meet the computing needs of AI in addition to building their own LLMs, are well positioned to benefit from China’s post-DeepSeek AI boom. 

Alibaba secured a major win for its AI business last month when it confirmed that the company was partnering with Apple to roll out AI integration for iPhones sold in China.

On Wednesday, the group also reported an expanded strategic partnership with BMW to accelerate the integration of its AI into the carmaker’s next-generation intelligent vehicles.

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Amazon resumes drone deliveries after two-month pause

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Amazon resumes drone deliveries after two-month pause

Amazon has restarted drone deliveries in two states after a months-long pause, the company confirmed.

In January, Amazon halted Prime Air deliveries in College Station, Texas, and Tolleson, Arizona, the two U.S. markets where it’s testing the service, as the company rolled out a software update to its drone fleet.

Amazon discovered an abnormality with the drone’s altitude sensor, caused by dust in the air, that could have caused its system to produce an inaccurate reading of its position relative to the ground, the company said. Amazon “never experienced an actual safety issue,” but said it opted to suspend deliveries while it corrected the issue.

The company brought drone deliveries back online last week after it completed the software update and received approval from the Federal Aviation Administration, Amazon spokesperson Av Zammit said in a statement.

“Safety underscores everything we do at Prime Air, which is why we paused our operations to conduct a software update on the MK30 drone,” Zammit said. “The updates are now complete and were approved by the FAA, allowing us to resume deliveries.”

An FAA spokesperson didn’t immediately provide a comment.

Zammit said Prime Air has seen “unprecedented levels of demand” since it resumed service. David Carbon, an executive who oversees Amazon’s drone program, wrote in a LinkedIn post last week that the company dropped a bottle of ZzzQuil sleep medicine at an Arizona customer’s home in “31 minutes and 30 seconds.” Carbon didn’t say how far the drone had to fly and Zammit declined to provide details.

For over a decade, Amazon has been working to bring to life founder Jeff Bezos’ vision of drones whizzing toothpaste, books and batteries to customers’ doorsteps in 30 minutes or less. But progress has been slow, as Prime Air has only been made available in the U.S. in College Station and Tolleson. A test site in Lockeford, California, was shuttered last April. The program was also hit with layoffs in 2023 as Amazon CEO Andy Jassy cut costs across the company.

Amazon has set a goal to deliver 500 million packages by drone per year by the end of the decade. The company last year notched a critical regulatory milestone that could enable it to accelerate deliveries. It’s eyed international expansion to the U.K., and recently welcomed Transportation Secretary Sean Duffy in a visit to a Prime Air facility.

The company also introduced a new version of its delivery drone, called the MK30, which is designed to be quieter than previous models and can fly in light rain.

Customers in College Station, a quiet suburban town that’s about 100 miles northwest of Houston, had previously complained about the drones’ noise levels. After rolling out the MK30, the company is also taking steps to relocate its drone hub farther away from residents’ homes later this year.

Before Amazon suspended drone deliveries, the MK30 crashed in two separate incidents during test flights at the company’s facility in Pendleton, Oregon. Last December, a software issue caused two drones to crash, according to Bloomberg. And in September, a pilot mistakenly caused a “mid-air collision” between two drones after he tested how the MK30 would perform when faced with a failed propeller, according to a federal crash report.

Another crash occurred on Feb. 21 during tests at the Pendleton site, which resulted in a drone sustaining substantial damage, according to a report compiled by the National Transportation Safety Board.

Amazon said the crashes were unrelated to its decision to halt drone operations. The company has said these kinds of incidents, which have also occurred with other models in previous years, are part of the testing process, as it pushes drone systems “up to the limits and beyond.”

WATCH: Amazon, Alphabet’s Wing and Zipline race to roll out drone delivery

Amazon drones make 100th delivery, lagging far behind Alphabet's Wing and Walmart partner Zipline

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Trump’s tariffs could mean big business for supply chain software startup LightSource

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Trump's tariffs could mean big business for supply chain software startup LightSource

LightSource cofounders: CTO Idan Mintz and CEO Spencer Penn

Courtesy: LightSource

With President Donald Trump set to impose sweeping tariffs on a wide swath of U.S. trading partners this week, corporate America is awash in uncertainty.

LightSource, a San Francisco startup whose software helps companies manage their procurement process, costs and vendor relationships, didn’t know what the president’s tariffs plan would look like before raising its first funding round. But the timing didn’t hurt.

LightSource has just closed a $33 million financing, led by Bain Capital Ventures and Lightspeed Venture Partners, with participation from J2 Ventures.

“Tariffs and trade winds are shifting so fast, it’s enough to make your head spin,” said Ajay Agrawal, a partner at Bain and now a board member at LightSource. “For a company with hundreds or thousands of different parts and suppliers — even just understanding what the impact will be on their whole enterprise is unbelievable.”

President Trump’s plans to slap “reciprocal tariffs” on all countries with duties on U.S. goods is set to be announced on Wednesday. Concerns surrounding the impact of those moves pushed the Nasdaq down more than 10% in the first quarter, the index’s biggest drop for any period since 2022.

Trump has already said he would impose 25% tariffs on “all cars that are not made in the United States.” Autos is a market that co-founder and CEO Spencer Penn knows well.

LightSource was started in 2021 by Penn and CTO Idan Mintz, while the two were working in different parts of Alphabet. Penn was at robotaxi unit Waymo, and Mintz was in the Google X “moonshot factory.”

Prior to Waymo, Penn worked at Tesla when the electric vehicle maker was starting to mass produce its popular Model 3 sedans. He said that finance, sourcing and engineering professionals have to work together to find, or sometimes custom order, high-quality parts. They also have to maintain their best supplier relationships while evaluating new potential vendors and negotiating fair prices.

Often these teams rely on “hundreds of disparate processes and information that’s stuck in thousands of emails, spreadsheets and randomly formatted invoices and contracts,” Penn said.

LightSource, which has about 30 employees, connects a company’s procurement-related information sources and systems to streamline that complex work. The aim is to speed up a company’s procurement process, saving the business time, money and pain while working with suppliers.

Mintz describes LightSource’s offering as a kind of “operating system” for procurement. Penn says it has the potential to do for procurement what Salesforce did for customer relationships.

Whether it’s a global pandemic, a natural disaster cutting off a shipping route, or a major shift in tariffs and trade policy, Mintz said, any supply chain disruption can make a huge difference to a company’s profit margins and its ability to deliver a product on time.

Current customers include consumer packaged goods companies, aerospace ventures, e-commerce companies and automotive giants.

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Tariffs put the Federal Reserve in a tough spot, says Moody's Mark Zandi

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AI chipmaker Cerebras announces CFIUS clearance, a key step toward IPO

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AI chipmaker Cerebras announces CFIUS clearance, a key step toward IPO

Toronto , Canada – 20 June 2024; Andrew Feldman, co-founder and CEO of Cerebras Systems, speaks at the Collision conference in Toronto on June 20, 2024.

Ramsey Cardy | Sportsfile | Collision | Getty Images

Artificial intelligence chip developer Cerebras said Monday that it has obtained clearance from a U.S. committee to sell shares to Group 42, a Microsoft-backed AI company based in the United Arab Emirates.

That clearance came from the Committee on Foreign Investment in the United States, or CFIUS, and it’s a key step for Cerebras in its effort to go public. Cerebras competes with Nvidia, whose graphics processing units are the industry’s choice for training and running AI models, but most of its revenue comes from a customer called Group 42.

Cerebras filed to go public in September but has not provided details on timing or size for the initial public offering. The regulatory overhang was tied to the company’s relationship with Group 42, which was the source of 87% of Cerebras’ revenue in the first half of 2024, made the IPO look uncertain.

“We thank @POTUS for making America the best place in the world to invest in cutting-edge #AI technology,” Andrew Feldman, Cerebras’ co-founder and CEO, wrote in a Monday LinkedIn post. “We thank G42’s leadership and the UAE’s leadership for their ongoing partnership and commitment to supporting U.S headquartered AI companies.”

Lawmakers have previously worried about Group 42’s connections to China. Last year Mike Gallagher, then a Republican member of Congress from Wisconsin, said in a statement that he was “glad to see G42 reduce its investment exposure to Chinese companies.” Microsoft later announced a $1.5 billion investment in Group 42.

Both Cerebras and Group 42 had given voluntary notice to CFIUS about the sale of voting shares, according to the Sunnyvale, California-based company’s IPO prospectus. Group 42 had agreed to buy $335 million worth of Cerebras shares by April 15, according to the prospectus. The two companies later changed the agreement to say Group 42 would be buying non-voting shares, prompting them to withdraw their notice, because they said they did not believe CFIUS had jurisdiction over sales of non-voting securities.

CFIUS did not immediately respond to a request for comment.

Just a handful of technology companies have gone public since 2021, as higher interest rates made unprofitable companies less desirable. But in recent months, Cerebras and a few technology-related companies have taken steps toward IPOs, and last week, AI infrastructure provider CoreWeave went public.

CoreWeave shares fell 7% on Monday, its second day of trading.

WATCH: Cerebras Systems likely to postpone IPO after facing delays with CFIUS Review, reports say

Cerebras Systems likely to postpone IPO after facing delays with CFIUS Review, reports say

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