Apple has been playing its cards close to its chest when it comes to AI. While rival Microsoft has jumped on the ChatGPT bandwagon and is integrating AI into everything despite the bugs and hallucinations, the acronym didn’t even get a mention at Apple’s Worldwide Developers Conference in June.
Reports emerged in July, however, that Apple was working on its own generative AI tool, dubbed internally “Apple GPT,” which uses a large language model (LLM) framework called Ajax. On this week’s quarterly earnings call, CEO Tim Cook said Apple was enthusiastic about the technology and has incorporated AI into forthcoming iOS17 features like Personal Voice (voice cloning and text-to-speech) and Live Voicemail (live transcription). He added:
“We’ve been doing research across a wide range of AI technologies, including generative AI, for years. We’re going to continue investing and innovating and responsibly advancing our products with these technologies, with the goal of enriching people’s lives. That’s what it’s all about for us. As you know, we tend to announce things as they come to market, that’s our M.O., and I’d like to stick to that.”
Of course, what everyday users want to know is whether Siri will be getting an AI upgrade. And they certainly appear to be working on it, with the Financial Times reporting that Apple is hiring dozens of researchers and engineers to work on “compressing existing language models so they can run efficiently on mobile devices, rather than in the cloud.” The ads indicated the company is fully focused on bringing LLM technology to mobiles.
There are speed, privacy and security reasons to run the AI locally on the phone hardware rather than in the cloud, given concerns over OpenAI and Claude hoovering up all your personal and business data. Back in 2020, Apple spent $200 million snapping up Seattle startup Xnor, which focuses on this exact problem.
Apple’s Personal Voice is coming in iOS17. (Apple)
Passwords even more useless due to AI
Even prior to the advent of AI, computing technology had progressed to the point where the average eight-character password — using a combination of numbers, upper and lower case letters and a special character as recommended — could be cracked in around five minutes. New research indicates that AI password crackers like PassGAN can crack more than half of all commonly used passwords in less than a minute.
Now it turns out that AI can work out your password with greater than 90% accuracy, purely from the sound of you typing. Given that almost everyone types within earshot of a computer or phone mic, that’s a pretty big exploitable area, especially if you log in to a site while on a Zoom call (93% accuracy.)
The tech isn’t quite as good when users touch type or use the shift key, but it’s even clearer that passwords alone without 2FA need to be consigned to the bin of history.
Passwords are increasingly obsolete (Home Security Heroes)
Google and Universal negotiate deal on music deep fakes
Johnny Cash’s fake version of “Barbie Girl” and Frank Sinatra riffing on a big band take of “Gangsta’s Paradise” are a couple of the more amusing AI deep fakes out there. This has provoked alarm from artists, including Drake and Sting, who are understandably concerned at their unique vocals and music styles being ripped off.
In response, Google has reportedly entered negotiations with Universal Music to create a tool for fans to create their own legitimate deep fakes of popular artists with a fee going back to the copyright holders. Artists would have the ability to opt in or opt out of the system. Google is trying to strike a similar deal with Warner Music, whose CEO, Robert Kyncl, enthused to investors this week that “with the right framework,” AI could “enable fans to pay their heroes the ultimate compliment through a new level of user-driven content . . . including new cover versions and mash-ups.”
Some artists have embraced AI technology, with Grimes offering a 50/50 split of proceeds to AI producers and Paul McCartney using AI to improve John Lennon’s rough demo vocals for “the final Beatles track,” which was abandoned due to poor quality in the ‘90s.
Disney’s AI task force
Hollywood writers and actors strike be damned! Disney has created an artificial intelligence task force to study how AI can be used across the entertainment behemoth. There are 11 current job openings across its theme parks, TV and advertising divisions.
While creatives see AI as a threat, a Disney insider says the company believes the bigger threat is not adapting to the new landscape in order to bring budgets down — now topping $300 million for tentpole releases like Indiana Jones. Apart from bringing down the costs of special effects with generative AI, a theme park imagineer told Reuters that AI can make the company’s robots more lifelike, pointing to Project KIWI, which used machine learning technique to give a free-roaming Baby Groot from Guardians of the Galaxy personality and character movements.
Disturbing research from IBM suggests that GPT-4 can be tricked into manipulating users. The researchers have shown that GPT-4 can be “hypnotized” to take part in multi-layered Inception-type games that saw the models “leaking confidential financial information, generating malicious code, encouraging users to pay ransoms, and even advising drivers to plow through red lights,” according to Gizmodo.
Even if users figured out one of the “games” the LLM was playing, the researchers had created multiple other “games” the user would fall into. Bard is apparently more difficult to manipulate than GPT-3.5 and GPT-4.
— Nvidia has just unveiled its GH200 super chip, which has 141GB of next-gen memory, three times the capacity of its popular H100 GPU. Nvidia says the cost of powering LLMs will drop significantly
— A new preprint from former Amazon AI researcher Konstantine Arkoudas analyzed GPT-4’s responses to 21 reasoning problems and concluded that: “Despite occasional flashes of analytical brilliance, GPT-4 at present is utterly incapable of reasoning.”
— Spotify’s AI feature “DJ” — which recommends new artists and tracks and tells you why you should give them a go — is being rolled out to 50 countries this week. Users of the beta so far have spent around one-third of their listening time using DJ.
— Goldman Sachs predicts that AI investments will soar to $200 billion globally by 2025, accounting for 4% of U.S. gross domestic product and around 2.5% of the GDP of other nations. One in six companies mentioned AI on recent earnings calls.
— Morgan Stanley is looking into concerns over an AI stock bubble, highlighting that previous bubbles had seen three-year peak returns of 150%. While AI stock darling Nvidia is up by 200% this year alone, broader AI indexes are only up by 50%.
— Researchers at Harvard and the University of Washington found that crowdsourcing business ideas from humans produced much more novel ideas than GPT-4, while prompting those same ideas from the AI produced ideas with better environmental and financial value. They concluded the best way forward may be an “integrative human-AI approach to problem-solving.”
— Nobody trusts AI with company data, according to a Blackberry survey of 2,000 company IT chiefs, which found three quarters are either implementing or considering bans on ChatGPT and other LLMs for data security, privacy and corporate reputation reasons. However, a McKinsey survey found that only 21% of organizations have implemented any policies on generative AI so far.
Video of the week
Redditor SellowYubmarine posted this “AI-generated trailer” for a Magic 8 horror film to the Singularity subreddit. While it highlights that a single user can employ AI tech to come up with a pretty impressive trailer, it still requires considerable effort, with the user employing ChatGPT for dialogue and story ideas Midjourney, Adobe Firefly, Runway, Pika Labs for the visuals and Photoshop, After Effects and Audition for editing.
Still, the new tech means creators will mainly be limited by their imaginations in the future, rather than budgets, as has been the case in the past.
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Andrew Fenton
Based in Melbourne, Andrew Fenton is a journalist and editor covering cryptocurrency and blockchain. He has worked as a national entertainment writer for News Corp Australia, on SA Weekend as a film journalist, and at The Melbourne Weekly.
Mr Streeting said the allegations are “not true”, telling Sky News’ Mornings With Ridge And Frost that whoever was behind the briefings had been “watching too much Celebrity Traitors”.
He insisted he was loyal to the prime minister, who has been under mounting pressure as he and the Labour Party flounder behind Reform in the polls.
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4:11
Health secretary insists he’s ‘a faithful’
Downing Street went on the attack on Tuesday night to ward off any potential challenge to Sir Keir after the budget, which could see the government announce manifesto-breaking tax rises.
Sir Keir and Rachel Reeves have refused to rule out raising income tax, national insurance, or VAT.
One senior figure told Sky News political editor Beth Rigby while a post-budget challenge is unlikely, it could come if next May’s elections – including in London and Wales – go badly for Labour.
Labour face a challenge from Reform on the right and parties like the Greens and Plaid Cymru on the left.
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7:55
Starmer backs Streeting at PMQs
Also under pressure is the prime minister’s chief of staff, Morgan McSweeney, after Mr Streeting hit out at a “toxic culture” inside Number 10.
Sir Keir failed to say he had “full confidence” in him at PMQs in response to questions from Kemi Badenoch, but the prime minister’s political spokesperson later insisted to journalists that he does retain his backing.
Sky News understands Mr McSweeney was not discussed when Sir Keir and Mr Streeting spoke last night.
Labour chairwoman Anna Turley said the prime minister will investigate the source of the claims against the health secretary, telling ITV: “This is not what he wants to see and he’s determined to drive it out.”
US President Donald Trump has signed off on a funding bill passed by the House of Representatives on Wednesday, officially bringing an end to the record 43-day government shutdown.
The funding bill went through the Senate on Monday and passed the House of Representatives on Wednesday, with Trump signing the bill just hours later to get the government back up and running.
Healthcare funding was one of the sticking points that halted the bill, with Democrats pushing to increase support, while Republicans sought to address the issue after the bill had passed.
After signing the bill, President Trump indicated that he may be willing to work with the Democrats to iron out these issues.
“I’m always willing to work with anyone, including the other party,” Trump said, adding:
“We’ll work on something having to do with health care. We can do a lot better.”
Trump signs the bill to end government shutdown. Source: Politico
The latest shutdown, which has become an almost annual affair, was the longest on record at 43 days.
The bill itself enables funding to support government operations until Jan. 30, and gives more time for Democrats and Republicans to strike a deal for broader funding plans across 2026.
What does it mean for crypto
The reopening of the government will see staff return to crypto-related agencies, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Crypto ETF issuers have been waiting for the SEC to approve a host of potential spot-crypto exchange-traded fund applications. Meanwhile, the CFTC has already pushed forward with plans for a Nov. 19 confirmation hearing of Mike Selig, Trump’s top pick to head the agency.
The Treasury should now also be positioned to sift through public feedback on the stablecoin-focused GENIUS Act, which was compiled between early October and the start of November.
Despite this, the crypto markets have responded flatly to the end of the government shutdown, with Bitcoin price action being minimal.
In past instances, the resumption of the US government has led to major rallies.
The longest US government shutdown on record is finally set to conclude, with the House of Representatives voting through a contested funding bill on Wednesday.
The bill is now headed to US President Donald Trump, who is expected to sign it Wednesday night.
Both Democratic and Republican lawmakers staunchly debated the bill in the House of Representatives, ahead of a final vote that ultimately ended in favor of the bill, with 222 votes in favor and 209 against.
House of Representatives debating the bill on Wednesday. Source: Bloomberg
According to a statement obtained by Fox News Digital, US President Donald Trump has already indicated that he will sign the bill, which would officially end the shutdown. The BBC reports that Trump plans to sign the bill at 9:45 pm local time during a private dinner with business leaders.
“The Administration urges every Member of Congress to support this responsible, good faith product to finally put an end to the longest shutdown in history,” the statement read.
The funding bill would cover most of the government’s expenses through to the end of January next year.
The bill saw neither side of the political aisle willing to budge. Democrats were pushing to halt the bill, demanding more funding for healthcare and the cost-of-living crisis. Republicans were not willing to address these concerns in the bill, instead calling for the government to reopen and promising to address these issues afterward.
The government shutdown has halted the progress of crypto bills and also left a significant number of spot-crypto exchange-traded fund applications sitting on the Securities and Exchange Commission’s desk.
Meanwhile, other bills — such as the comprehensive market structure bill — that have made some progress even during the shutdown, will now be able to gain more traction.