THE BIG STORY

Artificial Intelligence: Smart But Not Cheap

The rapidly growing demand for AI tools carries hefty costs. To develop ChatGPT, OpenAI needed lots of water, pulled from rivers in central Iowa, to cool a powerful supercomputer, AP reports.

In a paper due to be published later this year, researchers at University of California, Riverside estimate ChatGPT gulps nearly 16 ounces of water bottle every time it is asked a series of between 5 to 50 prompts or questions.

AI also requires large amounts of electricity. Globally, data centers currently account for about 1 to 1.5 percent of global electricity use, the International Energy Agency estimates. AI is expected to drive that number up a lot—and rapidly.

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TECHNOLOGY

Tech Warfare in the Middle East

An entirely new kind of warfare is unfolding in the Middle East, merging traditional military conflict with digital subterfuge that can incorporate new technological tools and turn traditional power dynamics on their head, Politico's Digital Future Daily reports. One example: Digitally savvy supporters of Hamas have been wreaking havoc by trying to take down everything from Israeli newspapers to the country’s Iron Dome missile defense system.

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MARKETS

AI Fuels $2.4 Trillion Market Cap Surge

A new report from venture capital firm Accel says U.S. tech giants added $2.4 trillion to their market capitalizations in a year defined by the hype around generative AI, CNBC reports. In its annual Euroscape report, Accel said the share price values of big technology firms such as Apple, Microsoft, Amazon and Nvidia rose by an average of 36 percent in the 12-month period ended Sept. 30.

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STARTUPS

Anyplace Aims to Serve Digital Nomads

Anyplace, a startup aimed at giving digital nomads the ability to work from any location with furnished apartments that include a fully equipped home office, is on track to reach a $10 million annual revenue run by early 2024, TechCrunch reports. Currently, Anyplace manages more than 100 units in four cities—New York City, San Francisco, Los Angeles and San Diego—and it plans to expand into new markets in the fourth quarter.

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SPONSORED

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QUICK HITS

• Microsoft completed its purchase of video game-maker Activision Blizzard for $69 billion on Friday, closing one of the most expensive tech acquisitions in history—one that could have repercussions across the video game industry.
• LinkedIn is laying off 668 employees in a new round of cuts, following layoffs affecting 716 employees in May.
• For the first time, amateur researchers have used artificial intelligence to decipher letters on an unopened 2,000-year-old scroll.

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QUOTE OF THE WEEK

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"We believe that there is no material problem—whether created by nature or by technology—that cannot be solved with more technology."

—Innovator and venture capitalist Marc Andreessen, in his "Techno-Optimist Manifesto" posted this week