Top stories today:

1. Amazon working on AI chatbot, to be launched in September
2. Apple rejected Meta AI integration due to privacy concerns
3. NVIDIA stock -7%, as CEO sells $95M in shares
4. Generative AI used by bad actors for deep fakes, scams, frauds

0. Data and calendar

No major events today.

1. Amazon working on AI chatbot, to be launched in September

• Amazon’s Metis plan to use retrieval-augmented generation (RAG) to give up-to-date responses, such as stock prices.

• AI agents are also in the plans.

• CEO Andy Jassy is involved.

Our view: until we get the next Transformers, LLM technology should stabilize

• We are already seeing some plateauing of LLM quality in the latest batch of models.

• We can still see creative new applications of LLMs, even without a major breakthrough in the core technology.

2. Apple reportedly rejected Meta AI integration due to privacy concerns

• March: brief talks were held, but they did not go anywhere, Bloomberg reports, after the WSJ reported yesterday they were talking.

• Apple “doesn’t see that [Meta's] privacy practices [are] stringent enough.”

4. NVIDIA stock -7%, back to #3 in market cap, as CEO sells $95M in shares