Defense Adoption of AI Technology 11/5/24

TechCheck

CNBC

Disruptors, Investing, Faang, Technology, Business, Management, Cnbc, Tech

4.8 • 56 Ratings

🗓️ 5 November 2024

⏱️ 7 minutes

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Summary

The focus for big tech this earnings season has been finding ways to monetize AI – and one use that’s emerged is the military. Shares of Palantir surged after the company cited a boom in demand for its AI software from the U.S. government. And it’s not alone as other AI giants including Meta and OpenAI also look to expand their work with defense agencies.

Transcript

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0:00.0	Star of the day, Palantir, surging more than 20% to record high, citing strong demand for its AI software, particularly from the U.S. government.
0:08.2	It's not the only top AI firm now working with defense agencies.
0:12.2	For today's tech check, our Deirdre Bosa has been digging into this growing trend.
0:16.4	Morning, Deirdre.
0:17.4	Hey, good morning, Sarah and Carl.
0:18.7	So what a difference a few years makes, right?
0:21.6	Silicon Valley's relationship with government defense and intelligence went from the reluctant and the uncomfortable
0:26.6	to really the strategic and the interdependent. A main driver is, of course, artificial intelligence.
0:32.6	And two of the most reason examples, they come from Palantir as well as meta.
0:36.6	Now, on the Palantir earnings call
0:38.4	last night, CEO Alex Carp said many times that their U.S. government business is booming. In fact,
0:43.9	it grew 40% year over year. That was a sevenfold increase that let him raise fullier guidance.
0:50.2	And like Sarah said, is now pushing shares to record highs. Carp said he's seeing the adoption of Palantir technology in every part of the U.S.
0:58.0	government, including, quote, the White House Congress, Defense, Intel.
1:02.4	Then there's META this week announcing that it is opening up its Lama AI model to U.S.
1:07.6	agencies for military purposes.
1:09.7	Now, that's a big deal because it marks a major shift from policy that had banned the use of its technology for such efforts.
1:17.3	In a blog post, Meta's president of Global Affairs, Nick Clegg, writing that the company now backs the responsible and ethical uses of technology in the global race for AI supremacy.
1:29.3	It's not quite so straightforward,
1:34.0	though, especially when it comes to open source models like Lama. Even though META has restrictions on their use, these are difficult to enforce because they're public. It's an open source model.
1:39.8	Reuters reported last week that Chinese researchers developed an AI model for military use on the back of METIs Lama.
1:47.0	A metas spokesperson took issue with this report and said that America must embrace open innovation or risk seeding its AI lead to China.
	...

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