Power constraints and ethical concerns are emerging as significant challenges in the rapidly evolving artificial intelligence landscape. Several developments, including investment in Indian AI infrastructure, disputes over AI model usage, and legal action regarding AI voice replication, highlight the complexities of the technology's growth.
Peak XV Partners recently backed C2i Semiconductors, an Indian startup, with $15 million in a Series A round, bringing the company's total funding to $19 million. C2i is developing power solutions to address the growing energy demands of AI data centers. According to a December 2023 report from BloombergNEF, electricity consumption from data centers is projected to nearly triple by 2035. This investment comes as power, rather than compute, becomes the limiting factor in scaling AI data centers, according to TechCrunch.
In a separate development, another Indian AI infrastructure startup, Neysa, secured backing from U.S. private equity firm Blackstone. Blackstone and co-investors agreed to invest up to $600 million in primary equity, giving Blackstone a majority stake. Neysa also plans to raise an additional $600 million in debt financing to expand GPU capacity. This investment reflects India's push to build domestic AI capabilities amid surging global demand for AI computing.
Meanwhile, Peter Steinberger, the creator of the AI personal assistant OpenClaw, joined OpenAI. Steinberger stated in a blog post that he was more interested in "changing the world, not building a large company." OpenClaw, previously known as Clawdbot and Moltbot, gained popularity for its ability to manage calendars, book flights, and interact with other AI assistants.
Google is also facing legal action. David Greene, the former host of NPR's Morning Edition, is suing Google, alleging that the male podcast voice in the company's NotebookLM tool is based on his voice. Greene stated, "My voice is, like, the most important part of who I am." A Google spokesperson told The Washington Post that the voice used in NotebookLM is unrelated to Greene's.
Finally, Anthropic is reportedly in a dispute with the Pentagon over the usage of its Claude AI models. The Pentagon is pushing AI companies to allow the U.S. military to use their technology for all lawful purposes, but Anthropic is resisting. The government is reportedly making the same demand to OpenAI, Google, and xAI. According to Axios, the Pentagon is threatening to pull the plug on its $200 million contract with Anthropic.
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