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βš‘πŸ”‹ Meta's Unclear Stance on AI Training Raises Privacy Concerns

And more : Microsoft faces increased scrutiny from Germany's Cartel Office over AI and cloud dominance; Lapsi Health redefines medtech with AI-enhanced stethoscope and pregnancy wearable

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πŸš€ Here is what you are going to find in The Supercharged today:

  • Meta's playing coy about whether it's training AI on smart glasses photos. Zuckerberg's giving us the digital equivalent of "I plead the fifth."

  • Microsoft's facing beefed-up competition scrutiny in Germany. Looks like the Germans aren't buying the "it's not monopoly, it's just really good business" line.

  • 11x.ai snagged $50M to develop AI sales reps. Soon, even the robots will be trying to sell you extended warranties.

  • Qodo scored $40M to bring "quality-first" code generation to enterprises. Because apparently, "quality-second" just wasn't cutting it in the corporate world.

  • Augmented Intelligence boasts its AI can make chatbots more useful. Next up: teaching fish to swim and birds to fly.

  • Series, a GenAI game dev platform, quietly pocketed $28M from tech bigwigs. Looks like Netflix, Dell, and a16z are hedging their bets on AI dungeon masters.

Meta won’t say whether it trains AI on smart glasses photos

Meta's AI-powered Ray-Ban smart glasses have sparked privacy concerns due to the company's refusal to clarify whether it plans to use photos taken by the devices for AI model training. The glasses feature a discreet camera that can capture images both on command and when triggered by specific keywords, potentially collecting a vast array of photos without the user's explicit awareness.

When questioned about their intentions to train AI models on these images, similar to their practices with public social media content, Meta representatives were evasive. Anuj Kumar, a senior director for AI wearables at Meta, stated, "We're not publicly discussing that," while spokesperson Mimi Huggins added, "That's not something we typically share externally."

The concern is amplified by the glasses' new AI feature, which can stream a series of images to a multimodal AI model when activated by certain keywords. This capability allows the glasses to answer questions about the user's surroundings in real-time, but it also means that numerous photos are being captured and uploaded to cloud-based AI models without the user's active involvement.

This lack of transparency is particularly troubling given Meta's history of using public Instagram and Facebook posts for AI training, which the company considers "publicly available data." However, the images captured through smart glasses are inherently more private, raising questions about the ethical use of such data.

The situation contrasts with other AI companies' practices. For instance, Anthropic and OpenAI have clear policies against training on customer inputs or outputs through their APIs. Meta's ambiguous stance on this issue leaves users uncertain about the privacy of their personal data captured through the smart glasses.

Furthermore, the presence of a face-mounted camera raises concerns about the privacy of others who may be unknowingly captured in photos or videos. This echoes past controversies surrounding similar technologies like Google Glass.

As Meta continues to expand its AI capabilities and integrate them into wearable devices, the company's reluctance to provide clear answers about data usage practices raises important questions about user privacy, consent, and the ethical development of AI technologies. The lack of transparency in this matter may lead to increased scrutiny from privacy advocates and potentially impact consumer trust in Meta's products.

Microsoft to face higher competition scrutiny in Germany, including over its use of AI

Microsoft has been designated by Germany's Federal Cartel Office (FCO) as having "paramount significance for competition across markets," subjecting the company to special abuse control measures. This designation, which lasts for five years, allows the FCO to scrutinize Microsoft's activities more closely, particularly in relation to its use of AI and partnerships with companies like OpenAI. The FCO's decision applies to Microsoft as a whole, not just specific services, giving the regulator broader power to intervene than the EU's Digital Markets Act. The FCO highlighted Microsoft's strength in cloud computing and its integration of AI across its ecosystem as key factors in the decision. Microsoft has stated it will work proactively and collaboratively with the German authority. Read more

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11x.ai, a developer of AI sales reps, has raised $50M Series B led by A16Z, sources say

11x.ai, a startup developing AI-powered sales development bots, has raised approximately $50 million in Series B funding led by Andreessen Horowitz. The round values the company at around $350 million, up from $90 million during its Series A. 11x.ai is approaching $10 million in annual recurring revenue, implying a valuation of about 35 times ARR. The company offers two AI bots: Alice for lead generation and outreach, and Jordan for phone sales in over 30 languages. While 11x.ai is ahead of competitors in funding and valuation, investors note it's still early to determine if it has a significant lead in the AI SDR market. With the new funding, the company may expand its suite of AI employees beyond sales representatives. Read more

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Ello AI Reading Coach Introduces Story Creation Feature

Ello, the AI-powered reading companion for children, has unveiled a new feature called "Storytime" that allows kids to create their own personalized stories. This update, launched on September 30, 2024, aims to enhance the learning experience for young readers.

Key Features of Storytime:

  1. AI-assisted story generation based on user-selected settings, characters, and plots

  2. Thousands of potential story combinations

  3. Two reading modes: turn-taking with Ello and an easier mode for younger readers

  4. Adaptation to the child's reading level and weekly phonics lessons

  5. Safety measures to ensure child-appropriate content

The Storytime feature utilizes Ello's proprietary AI system, which the company claims outperforms other speech recognition technologies like OpenAI's Whisper and Google Cloud's speech API.

Recent Developments:

  • Ello launched its iOS app, expanding beyond tablet devices

  • The company has served tens of thousands of families, with over 700,000 books read

  • Pricing: $14.99/month, with a discounted rate of $2.99/month for families receiving government assistance

  • Partnerships with low-income schools to offer free subscriptions

  • A free online library of decodable children's books

While AI-assisted story creation for children isn't new, Ello believes its offering stands out due to its advanced AI system and focus on teaching critical reading skills.

The company envisions future iterations of Storytime that will allow for even more user involvement in the story creation process, while maintaining appropriate guardrails for young users.

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πŸ›ΈLet’s Teleport in The Future

Amsterdam-based startup Lapsi Health is revolutionizing the traditional stethoscope with its FDA-approved digital device, Keikku. This Class IIA medical device transforms the conventional listening tool into a data-capturing health tracker, marking a significant step in the consumerization of medtech.

Keikku, priced at $350, features a touch-sensitive interface and wireless charging, eliminating the need for mechanical buttons or ports. It enables healthcare professionals to record digital sound clips, open secure communication channels, and stream data. The device is compatible with connected headphones via Bluetooth.

Lapsi's ambitions extend beyond just upgrading the stethoscope. The company plans to launch a second-generation device by the end of 2025, incorporating additional sensors to expand its diagnostic capabilities. Future software updates aim to add AI-based analysis, starting with heart murmur detection, pending FDA approval.

The startup is also developing a novel wearable called Ilo, designed for pregnant women to monitor fetal heartbeat and movements. This device, expected to receive FDA clearance in 2026, could serve as an early warning system for potential pregnancy complications.

Despite being a newcomer in the field, Lapsi has made significant progress in just over two years. The company has raised $5.8 million to date and plans to seek a $10 million Series A round in early 2025.

Lapsi faces competition from established players like Eko Health, which has been in the market longer and secured substantially more funding. However, Lapsi's team, combining medtech expertise with consumer health tech experience, believes they can develop novel medtech at a faster pace.

As Lapsi prepares to launch Keikku in the U.S. market, it aims to position itself at the forefront of AI-enhanced medical devices, promising a comprehensive suite for monitoring heart and lung conditions.

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I hope you find these resources helpful. Let me know if you have any questions, if there's anything else I can do to assist you, or what you would like to learn more about in AI.

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