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THE DAILY INDEX

Technology, AI, software, security, crypto and business

HEADLINES & LAUNCHES

TLDR AI

THE AI STARTUP FUELING CHATGPT'S EXPERTISE IS NOW VALUED AT $10 BILLION

Mercor, a human resources and recruiting startup, has finalized a new funding deal that values the company at $10 billion. The company manages 30,000 contractors around the world who help AI chatbots learn how to think and speak like humans. Venture capital firms are eager to offer funding to founders at sky-high valuations because they fear missing out on the next AI tech giant. Mercor is currently being sued by Scale for allegedly stealing trade secrets.

AI DISCOVERS NOVEL CANCER DRUG, OR DID IT?

Google recently published an announcement that its Gemma model had discovered a new potential cancer pathway. It's important to note that the model didn't invent or theorize a method to discover potential drug candidates - the entire construction of the experiment was imagined and executed by humans. The model was used to probabilistically narrow a set of potential candidates to a manageable set that could be inspected by human review. Humans still possess a reasoning capability that is not present in any current AI system.

ON-POLICY DISTILLATION

Thinking Machines Lab demonstrated that training smaller AI models by having them learn from their own mistakes, by grading them with a larger teacher model, achieves the same reasoning performance as RL at 9-30x lower cost. "On-policy distillation" combines the relevance of learning from your own outputs with the dense feedback of traditional distillation, reaching 70% on AIME'24 math problems in just 150 training steps compared to 17,920 GPU hours of RL.

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