The battle of the generative artificial intelligence models grew even more fierce this week, with little sign of abating.

We saw new OpenAI capabilities — which in turn suggest a whole new enterprise software market and even app stores — along with Elon Musk’s bold xAI, Kai-Fu Lee’s Chinese company 01.AI and Samsung’s edge-based Gauss, as well as shifting moves among AI and cloud players — Google Cloud with Anthropic, Microsoft with Oracle, Hewlett Packard Enterprise and SAP backing Aleph Alpha, and more.

Harvard Business Review wonders if the gen AI juggernaut is peaking. That seems doubtful, and in any case you’d never know it from KubeCon + CloudNativeCon in Chicago this week, as companies are scrambling to make sure the software container orchestrator Kubernetes can handle exploding AI workloads in the cloud.

Meantime, most enterprise software companies turned in earnings that investors cheered, but some such as Arm, in its first post-IPO report, disappointed.

And there were fitful moves by Meta Platforms, Microsoft and others to rein in AI-influenced ads, but we’ll have to see if it’s more than just talk to try to mollify regulators.

TheCUBE analysts Dave Vellante and John Furrier discuss this and other news, along with their weekly rants, on their latest installment of theCUBE Pod weekly podcast, out now on YouTube. And don’t miss Vellante’s weekly Breaking Analysis, coming over the weekend, on IBM’s surprising Watson AI renaissance.

AI big bucks and big talk

A new way of thinking about how the generative AI market will develop: There will be a very long tail of large language models: Breaking Analysis: The generative AI power law: How data diversity will influence adoption One sign of the trend toward long-tail LLMs comes from, of all companies, Intel, according to The Information.

A needed perspective from Tony Baer: There’s more to AI than generative AI

It’s not just the big clouds backing AI model developers with big bucks, though this one’s lesser-known: HPE, SAP back $500M+ funding round for language model developer Aleph Alpha

China’s coming too: 01.AI, led by AI pioneer Kai-Fu Lee, achieves $1B+ valuation in eight months

Big talk, so we’ll see, but more competition on the AI model front is surely good: Elon Musk’s AI startup xAI unveils Grok, its first generative AI chatbot

And all this money is circling the ecosystem (hopefully not the drain). “For the cloud providers, it’s a masterstroke.” Indeed, if not for VCs: Tech Giants Spend Billions on AI Startups—and Get Just as Much Back (from the WSJ)

Has Generative AI Peaked? I don’t think so, but this Harvard Business Review article does raise the right data and content challenges.

Does this open up an entirely new, no-code enterprise app platform? Sure looks like it: OpenAI debuts AI customization features and GPT-4 Turbo

OpenAI launches partner initiative focused on creating AI training datasets

Google expands Anthropic partnership after Microsoft and Oracle detail AI collaboration

AI companies start to limit use of AI in political ads, but I’m skeptical how well this will work: Meta introduces disclosure requirement for AI-generated political ads and To help 2024 voters, Meta says it will begin labeling political ads that use AI-generated imagery (from AP)

Could see this coming a mile away, unlike self-driving cars: Following San Francisco accident, Cruise recalls 950 of its robotaxis

It was never smart to count Amazon out of the AI race: Amazon reportedly building ‘Olympus’ language model with 2 trillion parameters and Amazon CodeWhisperer now provides enhanced AI-generated code suggestions for MongoDB developers and Real-world generative AI use cases, AWS style

GitHub unveils Copilot Enterprise, an AI coding tool personalized for the entire organization Startups are coming for this market too: Tabnine, which claims to have created the industry’s first AI-powered assistant for developers, has raised $25 million in a Series B round, bringing its total funding to $55 million.

DataRobot releases major updates to its enterprise-grade AI platform

Datadog integrates with Google Cloud’s Vertex AI to monitor health and performance of generative AI models

OctoML launches solution for customizing AI image generation models at scale

In the enterprise and the cloud

Lots of news from KubeCon + CloudNativeCon

Commentary from David Strom: Kubernetes security remains a big challenge for enterprise developers

And an analysis of the most promising developments and players from Intellyx’s Jason English: At KubeCon NA 2023, finding cloud independence on the edges of Kubernetes

Plus much more:

• Laptop vs. cloud: Two leading software engineers assess where developers will choose to work
• Google Cloud is making GKE Enterprise generally available
• CAST AI raises $35M in new funding and launches new Kubernetes optimization features at KubeCon
• Red Hat announces grand vision for AI at this year’s Kubecon + CloudNativeCon event
• The new era of Kubernetes and AI: TheCUBE kicks off day 1 at KubeCon
• Microsoft adds a ton of new features to Azure Kubernetes Service to make it more efficient, scalable and secure
• KubeCon Day 1 review: Dissecting trends around the changing cloud-native landscape
• The role of Kubernetes in shaping the cloud and AI landscape: theCUBE’s analysis, KubeCon Day 2 kickoff
• Navigating the cloud-native future: KubeCon Day 2 Insights from theCUBE
• And many more interviews from theCUBE

Earnings

• Arm’s stock sinks on lower guidance following first post-IPO earnings call Apparently there’s a big deal brewing that may or may not close in the fourth quarter, thus the negative outlook from Arm and investors’ reaction.
• Wow: Datadog shares jump 29% on strong quarterly results and upgraded guidance
• Shares of RingCentral jump on healthy earnings and revenue beats
• Teradata’s stock steadily climbs on results in line with analyst forecasts (from MarketWatch)
• Shares of GlobalFoundries and NXP rise on better-than-expected quarterly profits
• Shares of Akamai and Gen Digital rise on revenue beats
• Kyndryl beats expectations, cuts its losses by 50% and raises full-year outlook, sending its stock 12% higher
• Rivian shares rise as company ends electric van exclusivity agreement with Amazon
• Shares of Expensify crater after it delivers earnings and revenue that fell short
• Twilio shares move higher on solid earnings and revenue beat
• Synaptics’ stock makes strong gains on easy earnings and revenue beats

More enterprise and cloud news and analysis

Rob Strechay’s analysis of dbt Labs’ vision from its Coalesce conference this week: AnalystANGLE: dbt Labs’ vision and strategy: a bellwether for data platforms

A decidedly weird product; at this price, I’m skeptical: Humane unveils an AI-powered wearable smart pin that could replace your phone

An interesting new approach to making computing more secure: Truebit extends Web3 application and data integrity beyond the blockchain

Digital twin firm Duality AI launches cloud-based platform for testing robots

Daytona raises $2M to build enterprise-grade alternative to GitHub Codespaces

AppMap integrates code visualization and runtime analysis tools with GitHub

Intel in talks to build ‘secure enclave’ chip facilities for defense applications

VMware product blitz highlighted by data services and Cloud Foundation enhancements

Rebate management software startup Enable raises $120M in funding to hit unicorn status

AI and security highlight day one at Cisco Partner Summit

Qualcomm scraps Android satellite communications deal with Iridium

Cybersecurity and online safety

OpenAI’s ChatGPT and APIs affected by ‘periodic outages’ after DDoS attack

Meta whistleblower testimony will push US closer to an online safety bill

Palo Alto Networks confirms it has acquired enterprise browsing startup Talon for $625M

Controversy brews over new EU-based digital certificate laws that could compromise digital trust relationships

Mandiant: Russian hackers caused a power outage in Ukraine with 2022 cyberattack

Ransomware attack on China’s largest bank disrupts US Treasury markets

New survey from Akamai shows increasing benefits of network segmentation

Application interfaces become more popular for authorization security exploits

Palo Alto Networks unveils new zero-trust management solution, security features and next-gen firewalls

Orca Security teams with Google Cloud’s Vertex AI for automated code generation

Comings and goings

Slack will soon get a new CEO, having lost one to Bumble.

Dbt Labs names former HashiCorp and VMware vet Brandon Sweeney president and chief operating officer.

Rodney Clark, a longtime Microsoft exec, is Cisco Systems’ new channel chief (from CRN).

Google Cloud’s partner ecosystem leader Bronwyn Hastings leaves after two years, replaced by Colleen Kapase, formerly of Snowflake, Citrix and VMware (from CRN).

Gone: Justin Sun’s Poloniex exchange hit for over $100M in exploit

What’s next

SC23, the supercomputing conference: Nov. 14-16: TheCUBE will be out in full force covering the show and we’ll have the major news.

Microsoft Ignite Nov. 14-17: We’ll have all the news that fits.

Earnings: Foxconn, Palo Alto Networks, Cisco and Applied Materials

Supercloud 5: The Battle for AI Supremacy Nov. 28-Dec. 1:SiliconANGLE and theCUBE will present insights into how the big cloud players as well as on-premises veterans are angling to take advantage of the huge AI opportunities, with coverage that includes reporting and interviews from AWS re:Invent in Las Vegas, anchored from a live virtual event from our Palo Alto studio.

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