Amazon kills Alexa privacy option

In this newsletter:

• Amazon kills Alexa privacy option

• Baidu launches GPT-4.5 rival at 1% the cost

• Alphabet spins off Starlink competitor Taara

• xAI acquires AI video startup Hotshot

• Japan turns to AI for elderly care crisis

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AI News Headlines:

🛑 Amazon kills Alexa privacy option ↗️LINK

• What: Amazon is removing the “Do Not Send Voice Recordings” option from Echo devices, meaning all Alexa requests will be processed in the cloud starting March 28. Previously stored recordings will also be deleted.

• Why: The change supports Alexa’s new AI-powered capabilities, which require cloud processing. However, this raises privacy concerns, given Amazon’s past issues with storing and reviewing user recordings.

• Impact: Users lose local voice processing, potentially exposing data to law enforcement and Amazon’s AI training. The move may spark backlash from privacy-conscious consumers and watchdogs.

🏷️ Baidu launches GPT-4.5 rival at 1% the cost ↗️LINK

• What: Baidu has unveiled ERNIE 4.5, a GPT-4.5 competitor, and ERNIE X1, a model focused on advanced reasoning. ERNIE 4.5 is priced at just 1% of GPT-4.5’s cost, while ERNIE X1 is half the price of DeepSeek R1.

• Why: By drastically lowering AI costs, Baidu aims to challenge OpenAI and other Western models, making powerful AI more affordable and accessible.

• Impact: These models could trigger a global AI price war, pushing competitors to lower costs. They are available via ERNIE Bot and Baidu AI Cloud, expanding China’s AI ecosystem.

🛜 Alphabet spins off Starlink competitor Taara ↗️LINK

• What: Alphabet’s laser-powered internet project, Taara, is spinning off into an independent company. It uses light beams to transmit data at speeds of up to 20 Gbps over 20 km, offering a fast, cost-effective alternative to fiber in remote areas.

• Why: Taara aims to rival Starlink in connecting underserved regions, boasting higher bandwidth at lower costs. Spinning off allows it to attract strategic investors and scale faster. Alphabet retains a minority stake.

• Impact: Taara’s innovation could revolutionize rural internet access. With operations in 12 countries and a compact chip launching in 2026, it may reshape global connectivity and challenge satellite-based solutions.

🤖 xAI acquires AI video startup Hotshot ↗️LINK

• What: Elon Musk’s AI company, xAI, has acquired Hotshot, a San Francisco-based startup specializing in AI-powered video generation. Hotshot previously built three video foundation models and attracted funding from notable investors, including Reddit co-founder Alexis Ohanian.

• Why: The acquisition suggests xAI aims to develop its own AI video generation models, potentially competing with OpenAI’s Sora and Google’s Veo 2. Musk has hinted at adding video capabilities to xAI’s Grok chatbot.

• Impact: This move strengthens xAI’s position in AI-driven media creation, expanding its capabilities beyond text-based AI. Hotshot users must download their content before the platform shuts down on March 30.

👴 Japan turns to AI for elderly care crisis ↗️LINK

• What: Sompo Holdings, one of Japan’s largest insurers, is using AI and digital tools to address a growing caregiver shortage. Technologies like sleep sensors and automated paperwork aim to improve efficiency and service quality.

• Why: Japan’s elderly population hit 36.25 million in 2024, while birth rates reached record lows. With fewer workers, AI is seen as a solution to enhance elderly care without increasing staff.

• Impact: AI-driven care may set a precedent for aging nations worldwide. Meanwhile, Sompo is shifting focus to its global property and casualty business, expecting 60% of future profits from overseas markets.

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Zulkar Naim

Founder & CEO of OpenPedia

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