Silicon Valley Bank Collapse

PLUS: ChatGPT, now with pictures

Good morning human brains, welcome back to your daily munch of AI news.

Here’s what’s up:

  • The biggest bank in Silicon Valley just went belly up 📉

  • ChatGPT can finally tell you if you’re hot or not 😉

  • Human vs AI: Robo-lawyer gets sued by human lawyer 🥊


Silicon Valley Bank Collapse

Silicon Valley Bank, or SVB for short, has been the number-one bank for Silicon Valley startups for the last thirty years, including many of the biggest names in AI today like OpenAI.

Last week they collapsed, becoming the 2nd biggest bank failure in US history at over 200 billion dollars.

image source: /r/dataisbeautiful

The bank was taken down by underperforming assets, interest rate hikes, and an ensuing bank run.

Or, as explained by Bing AI in monkey-banana terms…

Ooh ooh aah aah! Me try to explain. Silicon Valley Bank like big tree with many bananas. Many monkeys like bananas and put their bananas in tree. Tree promise to give more bananas to monkeys later. But tree bad. Tree lose many bananas in storm. Tree not have enough bananas for all monkeys. Monkeys get scared and want their bananas back. Many monkeys run to tree and grab their bananas. But some monkeys too late. No more bananas in tree. Monkeys sad and angry.

Big monkey come and take over tree. Big monkey say he will find more bananas for monkeys who lost their bananas. Big monkey give some bananas to some monkeys now and more later. But some monkeys have to wait long time for their bananas.

Other trees see what happen to big tree and get worried. Other trees have many bananas too but not lose them in storm. Other trees hope their monkeys not run away with their bananas too.

Me hope you understand now.

So, it wasn’t strictly bad bananas that took down SVB, it was fear. The bank had more assets than liabilities, but most of those assets were locked up in long-term treasury bonds that are currently being devalued by rising interest rates.

image source: /r/dataisbeautiful

Once a few big names pulled out their money, the rest of their customers began to panic and raced to pull their money out too.

Many of the biggest names in AI banked with SVB, including OpenAI, which had to be bailed out by its CEO Sam Altman over the weekend with a personal loan in order to make payroll.

The latest: The FDIC has taken over SVB and has promised to make investors whole. As of yesterday depositors should be able to access their funds once again.


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ChatGPT, now with pictures

Ever wished you could just show ChatGPT what you mean? Get feedback on your profile picture? Or have it redraw a sketch for yours?

Well, now you can…

Microsoft just released a new research paper that adds image sending to our favorite text-based chatbot.

This one isn’t something you can play with just yet, but since Microsoft owns a huge stake in OpenAI, expect this to show up in ChatGPT or Bing sooner than later.

What we’re seeing: ChatGPT, and bots like it, are quickly becoming the main way we interact with AI models of all types. Each new breakthrough is now almost expected to be conversational by default.


Startup News

Update on AI lawyers: AI-powered startup “DoNotPay” is being sued because its robot does not have a law degree.

Startup Acquisition: Stability AI makes its first acquisition, swallowing the company behind “Clipdrop” whole.


NeuralLift-360: turn 2D photos into a 3D model.

UNINEXT: Tell AI what objects in your video to track based on text prompts.


ReplyBear: AI reply generator for Twitter.

Lasso: Use AI to find influencer partners for your startup.

Get Better Pics: Use AI to generate great pictures of yourself.

Today's AI-Generated Art Show 🖌️

Until next time 🤖😋🧠

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