Sam Bankman-Fried sentenced and AI arms race thoughts

An enormous development got here down within the cryptocurrency world this week, as FTX Trading Ltd. founder Sam Bankman-Fried was sentenced to 25 years in prison for fraud. That was one piece of huge news for theCUBE Research industry analysts John Furrier (pictured, left) and Dave Vellante (right) to investigate on the latest episode of the CUBE podcast.

It was a tough sentence for the so-called crypto king. Nevertheless it potentially represented a moment in time by which the community says that this isn’t the method to do business, in accordance with Furrier.

“My pondering is that they probably gave him the sentence, and he’ll appeal out. Something will go downstream,” he said. “Nevertheless it sends a message.”

Nonetheless, it did raise some questions in Vellante’s eyes. Though money can have been frozen for a very long time, people eventually got that a refund.

“Sam Bankman-Fried was pretty bad for what he did. However the outcomes for individuals with [Bernie] Madoff were so much worse,” Vellante said. “[Bankman-Fried] had assets he could liquidate, and other people got their a refund. Well, I assume you can say that they might make so much more now with crypto rising the best way it has. But I don’t know. It’s a philosophical query. He got what he got; he deserved it.”

AI arms race prone to bring a yr of innovation

At 52 episodes, this week’s theCUBE Podcast marks a full yr of podcasts, nevertheless it also marks a period in time by which AI hype has entered a brand new era. The patron is now leading the market, in accordance with Furrier.

“You’re going to see enterprise begin to put stakes in the bottom, and it’s going to be the yr of show the steak on the grill. When you get the sizzle, you higher show the steak, as they are saying,” he said.

Among the many so-called sizzly announcements this week was Databricks Inc. launching DBRX, a general-purpose large language model that it says outperforms all existing open-source models. The corporate made quite a lot of big claims, in accordance with Vellante.

“I checked out it and said, wow, a lot for small language models. I comprehend it’s 36 billion parameters they use out of 132 billion, but that also feels pretty big to me,” he said.

SambaNova Systems Inc. leapfrogged that because it introduced Samba-1, a generative artificial intelligence model that features greater than 1 trillion parameters. All of it represents efforts to attain breakthrough speeds without sacrificing precision, in accordance with Furrier.

“It’s going to come back right down to … what’s going to AI run on?” Furrier said. “That’s the large enterprise battle. Remember we used to make use of the NASCAR analogies, you prefer to say horses on the track. All of the cars are form of in a cluster. Someone gets ahead, someone slingshots out front. I believe we’re going to see so much more of this, where it’s going to be an arms race in AI like we’ve never seen.”

AI race brings investment surge and latest alliances

Within the AI arms race, there has also been a push from the investment community. That community is currently going all-in, even in spaces corresponding to observability, in accordance with Furrier.

“Jeremy Burton’s Observe got $115 million in a Series B, which is Series B round, but that’s a really tight market observability,” Furrier said. “He’s betting that they’re going to have a war chest of funds to propel themselves into the position to be within the pack.”

When it got here to Observe’s funding, Burton’s wisdom was reflected, in accordance with Vellante. The Observe CEO didn’t attempt to do the everyday thing in maximizing the valuation. “He tried to maximise his balance sheet and his runway and create a lovely deal for investors,” Vellante added.

Inside the AI race, there remains to be an enormous gap relating to the LLMs which are being adopted, something Vellante has written about often in his Breaking Evaluation series. OpenAI LP has an enormous lead over virtually everybody, including Llama.

“There’s numerous money on the market, and everybody’s going after them. Identical to everybody’s going after Nvidia,” Vellante said. “This Intel, Samsung, Qualcomm thing. Intel’s now in each, right? Isn’t Intel in that AI alliance that Meta and IBM did? Intel’s playing its cards in each decks, which, to me, for those who actually need to tackle Nvidia, don’t split, don’t fork these alliances. Get together.”

For alliances to be functional, they should do greater than look good on paper, in accordance with Furrier. Which means keeping certain things in mind.

“Are they really committed to the alliance? That’s one,” Furrier said. “Two, is the market moving too fast for the alliance to even get their eyes on the beachhead to be secure? That’s going to be one other one. In the event that they’re motivated by the undeniable fact that together, they’re winning together, then that’s something that might work.”

Watch the complete podcast below to seek out out why these industry pros were mentioned:

Jeremy Burton, CEO of Observe
Jensen Huang, founder and CEO of Nvidia
Rob Hof, editor-in-chief at SiliconANGLE Media
Paul Gillin, enterprise editor at SiliconANGLE Media
Mark Zuckerberg, CEO of Meta Platforms
Sanjay Poonen, president and CEO of Cohesity
Lina Khan, chair of the Federal Trade Commission
Sam Bankman-Fried, former CEO of FTX
Bernie Madoff, mastermind of the most important Ponzi scheme
Bill Belichick, former head coach of the Latest England Patriots
Matthew Slater, former NFL wide receiver
Tom Brady, former NFL quarterback
Malcolm Butler, former NFL cornerback
Willie McGinest, former NFL linebacker
Troy Brown, NFL football coach

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Photo: SiliconANGLE