🎤 Music Labels Vs AI

👨🏻‍⚖️ More AI regulations inbound?

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Welcome to AI Tool Report!

Tuesday’s top story: Recording Associations have hit AI startups Suno and Uncharted Labs with major copyright infringement lawsuits over unlicensed music….

🌤️ This Morning on AI Tool Report

  1. 🎵 Copyright battle hits AI music

  2. 🔨 How Metabase helps over 50,000 organizations

  3. 🚨 California's AI "kill switch"

  4. 💬 How to maximize your interview questions with ChatGPT

  5. 📉 Insiders are dropping AI stock

  6. 🎥 Synthesia redefines video creation

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🔔 Reminder of news events to watch this week:

  • Final GDP q/q

  • Unemployment

  • Core PCE price index

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🎵 Copyright battle hits AI music


Our Report: Major record labels, represented by the Recording Industry Association of America (RIAA), have filed copyright infringement lawsuits against two AI startups, Suno and Uncharted Labs (developer of Udio), for allegedly using unlicensed sound recordings to train their AI models for music generation.

🔑 Key Points:

  • Udio (which raised $10M in April) is behind the viral AI-generated song "BBL Drizzy," which gained attention during the Kendrick Lamar and Drake feud.

  • RIAA CEO Mitch Glazier stated the lawsuits are necessary to "reinforce the most basic rules of the road for the responsible, ethical, and lawful development of generative AI systems"

  • In April, over 200 artists signed an open letter calling AI developers and platforms to stop using AI to infringe upon artists' rights.

🤔 Why you should care: As AI-generated music becomes more and more sophisticated and accessible, this lawsuit, filed on behalf of Sony, UMG Recordings, Warner Records, and others, has the potential to set a precedent for the future of AI in music.

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🚨 California's AI regulation showdown


Our Report: California's proposed bill SB 1047 is creating a dramatic standoff over the future of AI regulation. The bill aims to make large AI model providers liable for potential catastrophic harms caused by their systems.

🔑 Key Points:

  • SB 1047 would make AI companies like Meta, OpenAI, and Anthropic liable for "catastrophic harms" caused by their AI systems and require them to create emergency "kill switches."

  • The bill is supported by AI "Godfathers" Geoffrey Hinton and Yoshua Bengio, and is sponsored by the Center for AI Safety, which views AI as a potential existential risk to humanity.

  • Many in Silicon Valley oppose the bill, arguing it will "kill, crush, and slow down the open-source startup ecosystem" (Anjney Midha, A16Z General Partner) and benefit big tech incumbents over smaller innovators.

🤔 Why you should care: This could become the first major AI regulation in the U.S. with real teeth, with the outcome of this legislative battle having the potential to shape the future of AI governance, and influence how we balance technological innovation with potential safety risks.

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Tuesday’s Prompt: How to maximize your interview questions with ChatGPT

Type this prompt into ChatGPT:

Generate a list of behavioral interview questions tailored to our company's values and culture.

Results: After typing this prompt, you will receive a detailed breakdown of the questions followed by a short description of how they align with your company’s values.

P.S. Use the Prompt Engineer GPT by AI Tool report to 10x your prompts.

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📉 Insiders sell AI stock

Our Report: Nvidia's stock dropped 6.5% on Monday, triggering a broader sell-off in AI-related stocks, causing a ripple effect across the market and dragging down other major players in the industry.

🔑 Key Points:

  • Nvidia shares fell as much as 6.5%, while Super Micro Computer dropped 8.5% and Taiwan Semiconductor Manufacturing declined 3.8% at their lowest points.

  • Nvidia CEO Jensen Huang sold 240,000 shares on Thursday and Friday, totaling $31.6M. In June alone, Huang sold nearly $95M worth of stock.

  • Nvidia's price-to-earnings multiple remains high at over 70, with a price-to-sales multiple of 37.6, indicating potentially inflated valuations.

🤔 Why you should care: Nvidia has been the biggest driving force behind the AI stock boom this year. However, its sky-high valuation, lack of profitable customers, and heavy insider selling have raised concerns that the AI hype may be getting ahead of its fundamentals.

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🎥 Synthesia redefines video creation

Our Report: Nvidia-backed AI startup Synthesia has unveiled impressive updates to its video production platform, allowing users to create AI avatars and multilingual presentations using just a phone or webcam.

🔑 Key Points:

  • Users can now create AI-generated avatars by recording less than five minutes of footage using a webcam or phone, a major shift from the previous studio-based process.

  • The platform now offers a screen recording tool featuring an AI avatar guide and the ability to produce AI avatars speaking in multiple languages.

  • Synthesia, used by nearly half of the Fortune 500, raised $90M last year, achieving a $1B valuation.

🤔 Why you should care: By making high-quality, AI-driven video content accessible to a broader audience, Synthesia is reshaping how businesses approach video communication, leading to more personalized and cost-effective content creation across industries.

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