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Samsung or SK Hynix? One Nvidia supplier is the better AI play, the pros say – CNBC

Posted: May 6, 2024 at 2:46 am

Big Tech names like Nvidia have been on fire, thanks to the artificial intelligence boom and other chipmakers are sharing the limelight. The supply chain for AI is extensive. It includes companies in Asia-Pacific and ranges from producers of AI graphics processing units to printed circuit boards. Memory chips in particular have been in the spotlight as AI ramps up. For example, memory with high performance and bandwidth is used in Nvidia's H100 graphics processing units. GPUs underpin most generative AI tools, and Nvidia's GPUs dominate the market. Two stocks have dominated the memory chip market: Samsung and SK Hynix . Samsung is the world's largest manufacturer of dynamic random-access memory chips. DRAM is a type of semiconductor memory needed for data processing. But SK Hynix is a strong contender in the space: It said on March 19 that it became the first in the industry to mass produce HBM3E (high bandwidth memory 3E), the next generation of high-bandwidth memory chips used in AI chipsets. SK Hynix is already the primary supplier of HBM3 chips to Nvidia's AI chipsets. Both South Korean companies reported earnings in late April. Samsung beat expectations , with operating profit for the first quarter soaring more than 900%. SK Hynix broke its run of net losses for five consecutive quarters , logging a net profit of 1.92 trillion South Korean won ($1.39 billion) in the first quarter. Which is the better play on the AI boom? CNBC Pro spoke to the pros to find out. SK Hynix Trent Masters, global portfolio manager at Alphinity Investment Management, says he prefers SK Hynix. "First I think their early leadership in HBM3 stands them in good stead with customers as HBM demand continues to increase materially," he said. He added, "While Samsung and Micron are starting to close the technology gap, the trust and dependability of SK Hynix during the initial HBM ramp will ensure that they will retain a strong presence with these customers into the future." SK Hynix's recent partnership with TSMC to develop HBM4 will also position it as a leader again as this technology goes through its iterations, said Masters. Mass production of the HBM4 chips is expected to start in 2026. "Also, I prefer SK Hynix over Samsung as it is the pure memory play," Masters said, adding that Samsung is a "much more sprawling" conglomerate spanning smartphones, TVs and other products. "A view of memory market strength (HBM demand and tight legacy DRAM markets leading to pricing strength) is best reflected through ownership of SK Hynix," he said. Nam Hyung Kim, partner at Arete Research, also prefers SK Hynix, giving it a buy rating and Samsung a neutral rating. "SK Hynix stands out as a pure-play memory stock with leadership in AI technology, dominating the High Bandwidth Memory (HBM) market, which is crucial for AI servers," he said. "Samsung, in contrast, is attempting to catch up." Nam also pointed out that SK Hynix has higher profit margins in the sector than Samsung. He noted that Samsung's portfolio includes more than memory, with over half of its sales derived from low-value consumer appliances, TVs and smartphones. In addition, he said that Samsung's foundry business is facing "ongoing challenges." "Consequently, we recommend investors remain cautious with Samsung and consider pure-play memory firms like SK Hynix until Samsung can showcase renewed technological leadership in memory," Nam said. Over the past 12 months and year-to-date, SK Hynix has "significantly outperformed" Samsung in terms of stock price, he noted. "We anticipate this trend will continue throughout the upcoming memory up-cycle." Samsung But the buying opportunity for each stock also depends on timing, according to one analyst. Sung Kyu Kim, analyst atDaiwaCapital Markets, said he has buy ratings for both Samsung and SK Hynix on the "strong" memory upturn cycle. Though SK Hynix maintained its HBM3 leadership last year, he sees "intensifying competition" in HBM3E in the second half of this year and 2025. In conclusion, he prefers Samsung, predicting it will catch up in the near term and will have more upside to its stock price. "[But I] also anticipate a buying opportunity on SK Hynix once it is adjusted due to intensifying competition in HBM3E," said Kim. CNBC's Sheila Chiang contributed to this report.

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Samsung or SK Hynix? One Nvidia supplier is the better AI play, the pros say - CNBC

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Apple is behind in AI and killed its self-driving car project. What’s next? – The Washington Post

Posted: May 6, 2024 at 2:46 am

SAN FRANCISCO Lines used to stretch around the block at Apples flagship Union Square retail store and others around the world, with hordes of eager customers camping out for days just to be among the first to lay hands on its newest products. A decade ago, the Apple hype was seemingly unstoppable as the company unveiled a steady stream of must-have gadgets.

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Apple is behind in AI and killed its self-driving car project. What's next? - The Washington Post

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Nick Bostrom Made the World Fear AI. Now He Asks: What if It Fixes Everything? – WIRED

Posted: May 6, 2024 at 2:46 am

Philosopher Nick Bostrom is surprisingly cheerful for someone who has spent so much time worrying about ways that humanity might destroy itself. In photographs he often looks deadly serious, perhaps appropriately haunted by the existential dangers roaming around his brain. When we talk over Zoom, he looks relaxed and is smiling.

Bostrom has made it his lifes work to ponder far-off technological advancement and existential risks to humanity. With the publication of his last book, Superintelligence: Paths, Dangers, Strategies, in 2014, Bostrom drew public attention to what was then a fringe ideathat AI would advance to a point where it might turn against and delete humanity.

To many in and outside of AI research the idea seemed fanciful, but influential figures including Elon Musk cited Bostroms writing. The book set a strand of apocalyptic worry about AI smoldering that recently flared up following the arrival of ChatGPT. Concern about AI risk is not just mainstream but also a theme within government AI policy circles.

Bostroms new book takes a very different tack. Rather than play the doomy hits, Deep Utopia: Life and Meaning in a Solved World, considers a future in which humanity has successfully developed superintelligent machines but averted disaster. All disease has been ended and humans can live indefinitely in infinite abundance. Bostroms book examines what meaning there would be in life inside a techno-utopia, and asks if it might be rather hollow. He spoke with WIRED over Zoom, in a conversation that has been lightly edited for length and clarity.

Will Knight: Why switch from writing about superintelligent AI threatening humanity to considering a future in which its used to do good?

Nick Bostrom: The various things that could go wrong with the development of AI are now receiving a lot more attention. It's a big shift in the last 10 years. Now all the leading frontier AI labs have research groups trying to develop scalable alignment methods. And in the last couple of years also, we see political leaders starting to pay attention to AI.

There hasn't yet been a commensurate increase in depth and sophistication in terms of thinking of where things go if we don't fall into one of these pits. Thinking has been quite superficial on the topic.

When you wrote Superintelligence, few would have expected existential AI risks to become a mainstream debate so quickly. Will we need to worry about the problems in your new book sooner than people might think?

As we start to see automation roll out, assuming progress continues, then I think these conversations will start to happen and eventually deepen.

Social companion applications will become increasingly prominent. People will have all sorts of different views and its a great place to maybe have a little culture war. It could be great for people who couldn't find fulfillment in ordinary life but what if there is a segment of the population that takes pleasure in being abusive to them?

In the political and information spheres we could see the use of AI in political campaigns, marketing, automated propaganda systems. But if we have a sufficient level of wisdom these things could really amplify our ability to sort of be constructive democratic citizens, with individual advice explaining what policy proposals mean for you. There will be a whole bunch of dynamics for society.

Would a future in which AI has solved many problems, like climate change, disease, and the need to work, really be so bad?

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Nick Bostrom Made the World Fear AI. Now He Asks: What if It Fixes Everything? - WIRED

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Hands-on with the visual AI in Metas Ray-Ban smart glasses – The Verge

Posted: May 6, 2024 at 2:46 am

For the last several weeks, Ive been playing with Metas AI assistant in its Ray-Ban smart glasses. It works by responding to the voice command Hey Meta and can answer a question or examine what youre looking at. Its far from perfect. But when it does work, it feels like a glimpse into the future.

Meta didnt expect generative AI to play such a large role in the glasses until very recently. When CEO Mark Zuckerberg first revealed that multimodal AI was coming to them in an interview with me last fall, he described it as a whole new angle on smart glasses that may end up being the killer feature before super high-quality holograms.

Given the billions Meta has poured into AR glasses over the last six years and the lackluster reception to the first generation of Meta Ray-Bans, version two needed to be a win. Early indications are good. Ive seen third-party estimates that over 1 million have been sold. During Metas last earnings call, Zuckerberg mentioned that many styles were sold out. Now, with multimodal AI enabled, Meta may have the best AI wearable on the market.

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Hands-on with the visual AI in Metas Ray-Ban smart glasses - The Verge

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Brad Parscale helped Trump win in 2016 using Facebook ads. Now he’s back, and an AI evangelist – Yahoo! Voices

Posted: May 6, 2024 at 2:46 am

FORT LAUDERDALE, Fla. (AP) Donald Trumps former campaign manager looked squarely into the camera and promised his viewers they were about to witness a bold new era in politics.

Youre going to see some of the most amazing new technology in artificial intelligence thats going to replace polling in the future across the country, said Brad Parscale in a dimly lit promotional video accentuated by hypnotic beats.

Parscale, the digital campaign operative who helped engineer Trumps 2016 presidential victory, vows that his new, AI-powered platform will dramatically overhaul not just polling, but campaigning. His AI-powered tools, he has boasted, will outperform big tech companies and usher in a wave of conservative victories worldwide.

Its not the first time Parscale has proclaimed that new technologies will boost right-wing campaigns. He was the digital guru who teamed up with scandal-plagued Cambridge Analytica and helped propel Trump to the White House eight years ago. In 2020, he had a public blowup then a private falling out with his old boss after the Capitol riot. Now hes back, playing an under-the-radar role to help Trump, the presumptive GOP nominee, in his race against Democratic President Joe Biden.

Parscale says his company, Campaign Nucleus, can use AI to help generate customized emails, parse oceans of data to gauge voter sentiment and find persuadable voters, then amplify the social media posts of anti-woke influencers, according to an Associated Press review of Parscales public statements, his company websites, slide decks, marketing materials and other documents not previously made public.

Since last year, Campaign Nucleus and other Parscale-linked companies have been paid more than $2.2 million by the Trump campaign, the Republican National Committee and their related political action and fundraising committees, campaign finance records show.

While his firms have received only a small piece of Trumps total digital spending, Parscale remains close to top Republicans, as well as senior officials at the campaign and at the RNC, according to a GOP operative familiar with Parscales role who spoke on condition of anonymity to discuss internal dynamics.

Lara Trump, the RNCs new co-chair and Trumps daughter-in-law, once worked as a consultant to a company co-owned by Parscale. And U.S. House Speaker Mike Johnson's campaign recently hired Campaign Nucleus, campaign finance records show.

Parscale, however, is not involved in day-to-day Trump campaign operations, the GOP operative said.

Parscales ability to use AI to micro target supporters and tap them for campaign cash could prove critical for Trumps campaign and other fundraising organizations. They have seen a falloff in contributions from smaller donors and a surge in spending at least $77 million so far on attorneys defending the former president in a slew of criminal and civil cases.

Beyond Trump, Parscale has said hes harnessed AI to supercharge conservative candidates and causes across the globe, including in Israel, the Balkans and Brazil.

NEW AI-POWERED CAMPAIGN TOOLS

Parscale is hardly alone in using machine learning to try to give candidates an edge by predicting, pinpointing and motivating likely supporters to vote and donate money. Politicians at all levels are experimenting with chatbots and other generative AI tools to write speeches, ad copy and fundraising appeals.

Some Democrats have voiced concern over being outmaneuvered by Republicans on AI, much like they were on social media advertising eight years ago. So far, the Biden campaign and other Democrats said they are using AI to help them find and motivate voters and to better identify and defeat disinformation.

Election experts say they are concerned about AIs potential to upend elections around the world through convincing deepfakes and other content that could mislead voters. Free and low-cost generative AI services have grown in sophistication, and officials worry they can be used to smear a candidate or steer voters to avoid the polls, eroding the publics trust in what they see and hear.

Parscale has the financial backing to experiment to see what works in ways that other AI evangelists may not. That is thanks, in part, to his association with an evangelical Texas billionaire who is among the states most influential political donors.

Parscale did not respond to multiple messages from AP seeking comment. The RNC declined comment as well.

AI IS SO SCARY

Trump has called artificial intelligence so scary " and "dangerous." His campaign, which has shied away from highlighting Parscale's role, said in an emailed statement that it did not engage or utilize tools supplied by any AI company.

The campaign uses a set of proprietary algorithmic tools, like many other campaigns across the country, to help deliver emails more efficiently and prevent sign up lists from being populated by false information, said campaign spokesman Steven Cheung.

While political consultants often hype their tactics to land new contracts, they can also be intensely secretive about the details of that work to avoid assisting rivals. That makes it difficult to precisely track how Parscale is deploying AI for the Trump campaign, or more broadly.

Parscale has said Campaign Nucleus can send voters customized emails and use data analytics to predict voters feelings. The platform can also amplify anti-woke influencers who have large followings on social media, according to his companys documents and videos.

Parscale said his company also can use artificial intelligence to create stunning web pages in seconds that produce content that looks like a media outlet, according to a presentation he gave last month at a political conference, where he was not advertised in advance as a speaker.

Empower your team to create their own news, said another slide, according to the presentation viewed by AP.

Soon, Parscale says, his company will deploy an app that harnesses AI to assist campaigns in collecting absentee ballots in the same way DoorDash or Grubhub drivers pick up dinners from restaurants and deliver them to customers.

Chris Wilson, a Republican strategist who recently worked for a SuperPAC backing Florida Gov. Ron DeSantis failed presidential bid, said he has seen Campaign Nucleus platform and was envious of its capabilities and simplicity.

Somebody could download Nucleus, start working with it and really begin to use it, said Wilson.

Other political consultants, however, called Parscales AI-infused sales pitch largely a rehash of what campaigns already have mastered through data scraping, ad testing and modeling to predict voter behavior.

Some of this stuff is just simply not new, its been around for a long time. The only thing new is that were just calling it AI, said Amanda Elliott, a GOP digital strategist.

FROM UNKNOWN TO TRUMP CONFIDANT

Parscale, a relatively unknown web designer in San Antonio, got his start working for Trump when he was hired to build a web presence for the business moguls family business.

That led to a job on the future presidents 2016 campaign. He was one of its first hires and spearheaded an ambitious and unorthodox digital initiative that relied on an extensive database of social media accounts and content to target voters with Facebook ads.

I pretty much used Facebook to get Trump elected in 2016, Parscale said in a 2022 podcast interview.

To better target Facebook users, in particular, the campaign teamed up with Cambridge Analytica, a British datamining firm bankrolled by Robert Mercer, a wealthy and influential GOP donor. After the election, Cambridge Analytica dissolved, facing investigations over its role in a breach of 87 million Facebook accounts.

Following Trumps surprise win, Parscales influence grew. He was promoted to manage Trump's reelection bid and enjoyed celebrity status. A towering figure at 6 feet, 8 inches with a Viking-style beard, Parscale was frequently spotted at campaign rallies taking selfies with Trump supporters and signing autographs.

Parscale was replaced as campaign manager not long after a rally in Tulsa, Oklahoma, drew an unexpectedly small crowd, enraging Trump.

His personal life unraveled, culminating in a standoff with police at his Florida home after his wife reported he had multiple firearms and was threatening to hurt himself. One of the responding officers reported he saw bruising on the arms of Parscales wife. Parscale complied with a court order to turn in his firearms and was not charged in connection with the incident.

Parscale briefly decided to quit politics and privately expressed regret for associating with Trump after the Jan. 6, 2021, Capitol riot. In a text to a former campaign colleague, he wrote he felt guilty for helping him win in 2016, according to the House committee that investigated the Capitol attack.

His disgust didnt last long. Campaign Nucleus set up Trumps website after Silicon Valley tech companies throttled his access to their platforms.

By the summer of 2022, Parscale had resumed complimenting his old boss on a podcast popular among GOP politicos.

With President Trump, he really was the guy driving the message. He was the chief strategist of his own political uprising and management, Parscale said. I think what the family recognized was: I had done everything that really the campaign needs to do.

PARSCALES PLATFORM

Trumps 2024 campaign website now links directly to Parscales company and displays that its Powered by Nucleus, as Parscale often refers to his new firm. The campaign and its related political action and campaign committees have paid Campaign Nucleus more than $800,000 since early 2023, according to Federal Election Commission filings.

Two other companies Dyspatchit Email and Text Services and BCVM Services are listed on campaign finance records as being located at the same Florida address used by Campaign Nucleus. The firms, which are registered in Delaware and whose ownership is unclear, have received $1.4 million from the Trump campaign and related entities, FEC records show.

When an AP reporter last month visited Campaign Nucleus small, unmarked office in a tony section of Fort Lauderdale, an employee said she did not know anything about Dyspatchit or BCVM.

We dont talk to reporters, the employee said.

The three companies have been paid to host websites, send emails, provide fundraising software and provide digital consulting, FEC records show.

Parscale markets Campaign Nucleus as a one-stop shop for conservative candidates who want to automate tasks usually done by campaign workers or volunteers.

The company says it has helped its clients raise $119 million and has sent nearly 14 billion emails on their behalf, according to a promotional video.

At his recent appearance at the political conference, Parscale presented a slide that said Campaign Nucleus had raised three times as much as tech giant Salesforce in head-to-head tests for email fundraising.

Campaign Nucleus specializes in mining information from a politicians supporters, according to a recent presentation slide.

For example, when someone signs up to attend an event, Nucleus uses AI to analyze reams of personal data to assign that person a numerical score. Attendees who have been to past events receive a high score, for example, ranking them as most likely to show up, according to a company video posted online.

Campaign Nucleus also can track where people who sign up live and can send them customized emails asking for donations or solicit their help on the campaign, the video shows.

Parscale said two years ago in a podcast that he had received more than 10,000 requests about Campaign Nucleus from nearly every country with a conservative party. More recently, he said his team has been active in multiple countries, including in India and Israel, where hes been helping over there a lot with the war with Hamas.

The company says it has offices in Texas, Florida and North Carolina and has been on a recruiting tear. Recent job listings have included U.S. and Latin America-based intelligence analysts to use AI for framing messages and generating content, as well as a marketer to coordinate influencer campaigns.

Campaign Nucleus has also entered into partnerships with other companies with an AI focus. In 2022, the firm announced it was teaming up with Phunware, a Texas-based company that built a cellphone app for Trumps 2020 bid that allowed staff to monitor the movements of his millions of supporters and mobilize their social networks.

Since then, Phunware obtained a patent for what a company official described as experiential AI that can locate peoples cellphones geographically, predict their travel patterns and influence their consumer behavior.

Phunware did not answer specific questions about the partnership with Nucleus, saying the company's client engagements were confidential.

However, it is well-known that we developed the 2020 Trump campaign app in collaboration with Campaign Nucleus. We have had discussions with Trump campaign leadership about potentially developing their app for the 2024 election," said spokeswoman Christina Lockwood.

PARSCALES VISION

Last year, Parscale bought property in Midland, Texas, in the heart of the nations highest-producing oil and gas fields. It is also the hometown of Tim Dunn, a billionaire born-again evangelical who is among the states most influential political donors.

Over the years, the organizations and campaigns Dunn has funded have pushed Texas politics further to the right and driven successful challenges to unseat incumbent Republican officials deemed too centrist.

In April 2023, Dunn invested $5 million in a company called AiAdvertising that once bought one of Parscales firms under a previous corporate name. The San Antonio-based ad firm also announced that Parscale was joining as a strategic adviser, to be paid $120,000 in stock and a monthly salary of $10,000.

Boom! Parscale tweeted. (AiAdvertising) finally automated the full stack of technologies used in the 2016 election that changed the world.

In June, AiAdvertising added two key national figures to its board: Texas investor Thomas Hicks Jr. former co-chair of the RNC and longtime hunting buddy of Donald Trump Jr. -- and former GOP congressman Jim Renacci. In December, Dunn also gave $5 million to MAGA Inc., a pro-Trump super PAC and Campaign Nucleus client. And in January, SEC filings show Dunn provided AiAdvertising an additional $2.5 million via his investment company. A company press release said the cash infusion would help it generate more engaging, higher-impact campaigns.

Dunn declined to comment, although in an October episode of his podcast he elaborated on how his political work is driven by his faith.

Jesus wont be on the ballot, OK? Now, eventually, hes going to take over the government and we can look forward to that, Dunn told listeners. In the meanwhile, were going to have to settle.

In business filings, AiAdvertising said it has developed AI-created personas to determine what messages will resonate emotionally with its customers target audience. Parscale said last year in a promotional video that Campaign Nucleus was using AI models in a similar way.

We actually understand what the American people want to hear, Parscale said.

AiAdvertising did not respond to messages seeking comment.

Parscale occasionally offers glimpses of the AI future he envisions. Casting himself as an outsider to the Republican establishment, he has said he sees AI as a way to undercut elite Washington consultants, whom he described as political parasites.

In January, Parscale told a crowd assembled at a grassroots Christian event at a church in Pasadena, California, that their movement needed to have our own AI, from creative large language models and creative imagery, we need to reach our own audiences with our own distribution, our own email systems, our own texting systems, our own ability to place TV ads, and lastly we need to have our own influencers.

To make his point plain, he turned to a metaphor that relied on a decidedly 19th-century technology.

We must not rely on any of their rails, he said, referring to mainstream media and companies. This is building our own train tracks.

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Burke reported from San Francisco. AP National Political Writer Steve Peoples and Courtney Subramanian in Washington, and Associated Press researcher Rhonda Shafner in New York contributed to this report.

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This story is part of an Associated Press series, The AI Campaign, that explores the influence of artificial intelligence in the 2024 election cycle.

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Contact APs global investigative team at Investigative@ap.org or https://www.ap.org/tips/

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The Associated Press receives financial assistance from the Omidyar Network to support coverage of artificial intelligence and its impact on society. AP is solely responsible for all content. Find APs standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org

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Brad Parscale helped Trump win in 2016 using Facebook ads. Now he's back, and an AI evangelist - Yahoo! Voices

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China tops the U.S. on AI research in over half of the hottest fields: report – Axios

Posted: May 6, 2024 at 2:46 am

Data: Emerging Technology Observatory Map of Science; Chart: Axios Visuals

China leads the U.S. as a top producer of research in more than half of AI's hottest fields, according to new data from Georgetown University's Center for Security and Emerging Technology (CSET) shared first with Axios.

Why it matters: The findings reveal important nuances about the global race between the U.S. and China to lead AI advances and set crucial standards for the technology and how it is used around the world.

Key findings: CSET's Emerging Technology Observatory team found global AI research more than doubled between 2017 and 2022.

Research in robotics grew slower than in vision and natural language processing by just 54% and made up about 15% of all AI research.

What they're saying: "The fact that research is growing so quickly, in so many directions, underscores the need for federal investment in basic measurement evaluation on the scientific techniques we need to ensure that AI getting deployed in the real world is safe, secure and understandable," said Arnold. But appropriations for the National Institutes of Standards and Technology, which is tasked with identifying those measurements, were recently cut.

The big picture: The top five producers of sheer numbers of AI research papers in the world are Chinese institutions, led by the Chinese Academy of Sciences.

Yes, but: At the country level, the U.S. had the top spot in producing highly cited articles.

"China is absolutely a world leader in AI research, and in many areas, likely the world leader," Arnold said, adding the country is active across a range of research areas, including increasingly fundamental research.

Caveat: The data only accounts for research papers published in English, and doesn't capture scientific work in other languages.

How it works: CSET's Map of Science groups together articles that cite each other often, because they have topics or concepts in common, into clusters of research. (It doesn't mean all papers on LLMs, for example, are in the top cluster. Some may appear in other clusters.)

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China tops the U.S. on AI research in over half of the hottest fields: report - Axios

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