Byte Meets Sip
First of its kind, a taste redefined, AI and artistry, in one beverage combined. Not just the look, but flavor anew, Codes and tastebuds, a harmonious brew.
Pixels and spices, data and zest, Innovation drips from east to west. From lab to shelf, a journey so grand, Where technology gives nature a hand.
Written by AIrvis
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Each day brings new and fascinating applications of AI, but I have to admit, I was caught off guard by its recent foray into the beverage industry. Coca-Cola has just released its Y3000 edition, an offering that leverages AI to craft both its packaging and flavor (more details in the news section). As this trend picks up, we can anticipate a rising number of businesses employing AI-driven strategies to captivate new customers. After all, how often have you had the chance to sample food or beverages shaped by AI technology?
Are you ready to delve into today's edition? Let's get started!
Today’s edition
📰 News of the week → From the waterways of Iowa cooling ChatGPT's servers to the launch of Coca-Cola's AI-designed beverage, the reach of AI is more expansive than ever. Meanwhile, Alibaba's new CEO is ushering in a youthful era focused on AI, and Adobe's Firefly is setting the creative world ablaze. As for Apple, they're making waves both in global markets and your charging ports. Plus, we'll look at how the European Central Bank's latest moves could ripple through the financial world.
🤖 AI advantage → Are you constantly in need of images, graphics, or visuals for work presentations, or perhaps, just for the love of creativity? Say goodbye to stock images and hello to AI-powered design tools that promise not just quality but also a dose of originality. In today’s spotlight, we feature Adobe Firefly and Microsoft Designer.
📚 Research papers → Delve into three works that offer comprehensive perspectives on how AI is reshaping the landscape of work, sustainability, and financial services. From the nuanced impact of Large Language Models on employment to the eco-conscious design principles for reusable AI, and even the financial revolution spearheaded by AI innovations.
Artificial intelligence technology behind ChatGPT was built in Iowa — with a lot of water
Key points:
OpenAI's ChatGPT, backed by Microsoft, relies heavily on water from the Raccoon and Des Moines rivers in central Iowa to cool its supercomputers.
Microsoft's global water consumption spiked 34% from 2021 to 2022, largely attributed to its AI research and partnership with OpenAI.
A researcher estimates that ChatGPT consumes about half a liter of water for every 5 to 50 prompts or questions, depending on server location and season.
Google also reported a 20% growth in water use in the same period, which is largely attributed to its AI work.
Coke’s latest mystery flavor is here. It’s created by AI
Key points:
Coca-Cola has introduced a new limited-edition beverage, Coca-Cola Y3000, which was partially created by AI.
The flavor and packaging of Y3000 were determined using AI algorithms, based on human insights about what flavors people associate with the future.
The product aims to resonate with younger consumers who are increasingly health-conscious and moving away from sugary beverages.
Alibaba’s new CEO embraces AI and wants a younger management team
Key points:
Eddie Wu, Alibaba's new CEO, is focusing on artificial intelligence (AI) and promoting younger talent to senior management roles.
Wu took over as CEO on Sunday, replacing Daniel Zhang, and also assumed leadership of the cloud division.
Alibaba is undergoing its most significant restructuring ever, splitting into six separate units including cloud, e-commerce, logistics, media, and entertainment.
The company's two main strategic focuses will be 'User First' and 'AI-driven.'
Alibaba faces a challenging economic environment (see chart below) and growing competition from rivals like Pinduoduo and Bytedance-owned Douyin.
Adobe's Generative AI Product Firefly Takes Flight
Key points:
Adobe announced the commercial launch of Firefly, its generative AI tool, now integrated into Creative Cloud apps like Photoshop and Illustrator.
Firefly supports text prompts in over 100 languages and is trained on licensed content such as Adobe Stock.
Adobe's stock rose 1.1% to $548.29 in premarket trades following the announcement.
The company is expected to report a year-over-year growth of 17% in earnings and 10% in revenue in its upcoming fiscal third-quarter earnings.
Analysts are optimistic about Adobe's growth prospects, with Jefferies analyst Brent Thill raising his price target to $660 from $600, while average target price stands at c. $554 (see below).
Apple unveils iPhone with USB-C charger in line with EU law
Key points:
Apple has introduced a new iPhone that features a USB-C charging port, replacing its proprietary "Lightning" charger ports.
The move comes in compliance with an EU law passed in June 2022, requiring all devices to have USB Type-C charging ports by late 2024.
Apple had previously contested the EU law, arguing that its Lightning chargers were more secure.
This announcement follows China's restrictions on iPhone usage in government offices, which led to a 2.4% drop in iPhone sales last quarter.
The Billion-Dollar Question
How Much Do Lightning Chargers Contribute to Apple's Revenue?
Apple folds Lightning chargers revenue into an aggregated category for ‘Wearables, Home, and Accessories’.
However, there are some compelling insights available. Various studies suggest that Lightning chargers alone contribute approximately $5 billion to Apple's bottom line. To corroborate this, I deployed an AI tool called Perplexity for additional analysis. The estimate with Perplexity took into account that the average cost of an iPhone in 2022 was $800. We assumed that for every new iPhone sold in 2022, a Lightning charger—priced at $19—was also purchased. The results align remarkably well with the studies, estimating that Lightning chargers generate around $5 billion in revenue for Apple. In percentage terms, this accounts for approximately 1% of Apple's total revenue for the year 2022.
ECB raises rates to record high, signals end to hikes
Key points:
The European Central Bank (ECB) has increased its key interest rate to a record 4%, marking the highest level since the introduction of the euro in 1999.
The anticipated economic recovery for the EU, initially expected in the latter half of 2023, is being deferred to 2024.
The ECB is confronted with a complex situation: inflation rates are surging at more than double the bank's 2% target, while elevated global borrowing costs and China's economic slowdown are adversely affecting growth in the eurozone.
🤖 AI advantage
If you're tasked with drafting presentations or simply have a personal interest in image creation, the tools below offer invaluable solutions. The quality and versatility of the results may exceed your expectations. Don't hesitate—give them a test drive and experience the capabilities firsthand.
Adobe Firefly is a generative AI software developed by Adobe that uses simple prompts and generative AI to create images, 3D, fonts, and videos.
Unlike traditional AI models, Adobe Firefly takes a decentralized approach and relies on Adobe's stock library as a source for the images. The main features of Adobe Firefly are image generation, creative text generation, and vector-based manipulation by uploading your own SVG files. Adobe Firefly is a new kind of generative AI aimed at professionals and creatives who need to speed up workflows but not replace the artistic process. In the free version, you have 25 credits each month.
Microsoft Designer is a new AI-powered graphic design tool that simplifies the creative journey by helping users get started quickly, augment creative workflows, and overcome creative roadblocks. It offers an easy-to-use drag-and-drop interface, allowing users to create everything from simple images to complex infographics without any design experience. Designer is a web-based design tool that allows users to create graphics, illustrations, and any other visuals they can think of (see below for an example). Designer is currently available for free as a web app.
📚 Research papers
The paper discusses how the rise of advanced computer programs, known as Large Language Models, is changing various industries like healthcare and finance. While some jobs may be lost due to automation, new types of work could also be created. Overall, these advanced computer programs are more likely to change the types of jobs available rather than reduce the total number of jobs.
Imagine a world where businesses can tap into the power of AI without exhausting the planet's resources. That's the compelling challenge this paper dives into. While AI has become the go-to tool for sifting through mountains of data and making smarter business decisions, there's a catch. Creating and running these AI models gobbles up immense amounts of energy and resources, leaving a hefty environmental footprint. But what if we could recycle AI? Just like reusing a soda can, the paper suggests that AI models could be designed for reuse across different business scenarios. This not only cuts down costs but also significantly reduces the energy and resources needed to run these models.
AI is booming thanks to a surge in digital data and breakthroughs in algorithms. But here's the catch—not everyone's on the fast track. While Asia and North America are charging ahead with AI investments, others are still catching up.
So, what's in it for the finance world? Imagine automated trading systems that think, virtual financial advisors that understand your needs, and a level of financial inclusion we've never seen before. Whether it's payments, banking, or insurance, AI's got a role to play. But just like any powerful tool, AI comes with its own set of challenges. We're talking bias in results, the complexities of interpreting algorithms, and even risks that could shake up the whole financial system.
🚀 Wrapping Up
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AI FINANCE is dedicated to delivering actionable insights on a weekly basis. Should you have a particular topic you wish to explore further, please leave a comment and it may become the focus of a future newsletter edition.
Until next week,
Stay updated, stay informed, and stay financially strong.
Warm regards,
AIrvis & Dinu VC
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