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Chinese quants redouble AI bets amid ChatGPT frenzy

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Chinese quants redouble AI bets amid ChatGPT frenzy

Chinese quant hedge fund managers are rushing to explore ChatGPT-style tools, embracing the emerging AI technology that has sparked a global frenzy since the release of the widely popular Microsoft-backed OpenAI chatbot.

Quants’ focus on advanced artificial intelligence to aid decision-making comes amid a tough investment environment, as China’s post-COVID recovery wanes and competition rises in the country’s 20 trillion yuan ($3 trillion) private fund industry.

“ChatGPT is an epoch-making application … It can draw conclusions from a complicated network of relationships with numerous dimensions in ways human brains cannot,” said Steve Chen, partner of Shanghai-based MX Capital.

“Exploring its ability is now our main focus.”

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His hedge fund already uses ChatGPT to better understand a company’s fundamentals and avoid value traps, project earnings power, and identify investment opportunities and risks.

ChatGPT, trained using a huge amount of data, can write poems, compose music, draw paintings, and generate other strikingly humanlike responses based on user prompts.

A ChatGPT-like tool boosts quants’ ability to process text-related data, said Feng Ji, chairman of Baiont Capital.

“We were also inspired by ChatGPT to build large models using trading data, instead of text,” Feng said.

Feng’s hedge fund, backed by former Google China chief and AI veteran Kai-Fu Lee, has invested heavily in hardware to enhance computing power required for model-training.

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High-Flyer, among China’s biggest quant funds, has hailed advanced AI as the “greatest innovation of our times”.

In April, High-Flyer announced the setup of a research unit to explore disruptive AI technologies.

MACHINE VS MAN
Last week, Beijing-based asset manager Zhishan Investment said it would deploy AI robot “Cybertron” across all products and use it to help reshape its investment methodology.

Baiont Capital’s Feng is more ambitious, seeking to let robots take full control of the investment process – from data analysis and prediction, to decision-making and execution.

Feng’s Nanjing-based company uses high-frequency trading strategies and recruits only computer scientists, not Wall Street traders.

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Robots do a much better job than humans in forecasting share moves over the next hour as “machine learning is designed to make such predictions”, Feng said.

While ChatGPT-like tools have stirred excitement, the race to develop and adopt powerful AI services has also fuelled anxiety about privacy, safety and job security.

Regulators are looking for ways to tackle the impact of generative AI technology. In China, where technology giants such as Alibaba (9988.HK), Sensetime (0020.HK), and Baidu (9888.HK) have ramped up AI bets, regulators unveiled draft measures in April giving them greater oversight of the technology.

Larry Cao, senior director of research at CFA Institute, cautioned the technology could put at stake jobs of bankers and fund managers working in areas where data is easily accessible.

“If you’re an analyst just telling people the story that everybody is telling other folks, what’s your value-add? I can just ask ChatGPT, right?” said Cao, editor of a newly published handbook on how to apply AI and Big Data in investments.

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“The threat is real, but it’s not tomorrow.”

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WhatsApp to launch file sharing feature without internet

WhatsApp to launch file sharing feature without internet

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WhatsApp to launch file sharing feature without internet

The messaging app WhatsApp, owned by Meta, is working on a cool new feature to make it easier to share files even when you’re not connected to the internet.

Recent leaks say that pretty soon, you’ll be able to share photos, videos, music, and documents offline.

This new feature is all about letting you share different kinds of files without needing Wi-Fi or data. And don’t worry about security – the files you share will be encrypted, which means they’ll be safe from anyone trying to mess with them.

Screenshots that got leaked from the latest test version of WhatsApp for Android show us what kind of permissions this feature will need. One important thing is that it’ll be able to find other phones nearby that also have this offline file-sharing thing.

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For this to work on Android phones, WhatsApp needs a permission that lets it look for other devices using Bluetooth. But if you’re not comfortable with that, you can always turn it off.

Before this, WhatsApp added a feature that lets you pin notes to keep them handy. So, looks like WhatsApp is always coming up with cool stuff to make chatting even better!

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Flame-throwing robotic dog unleashed for sale in US

Flame-throwing robotic dog unleashed for sale in US

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Flame-throwing robotic dog unleashed for sale in US

A flame-throwing robotic dog is now available for sale in the US, thanks to an Ohio-based company.

Throwflame first released the contraption last year but recently announced it was back in stock, asking for $9,420 a piece.

The company released a promotional video showing the ARC Flamethrower and saying it can “send streams of fire up to 30 feet with the push of a button.”

The flamethrower is attached to a Go2 Robot Dog manufactured by the China-based Unitree.

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Throwflame said on its website the flamethrowers are legal to own and are “federally unregulated,” but are “not even considered a firearm (ironic) by the federal authorities.”

The company released its first flamethrowers in 2015, called the X15, which could send “a stream of flaming fuel or napalm up to 50 feet.”

That prompted a huge media response, questioning its legality. But Throwflame said the device remains “completely unrestricted in 48 states.”

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US military stage world’s first ever AI controlled warplane

US military stage world’s first ever AI controlled warplane

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US military stage world's first ever AI controlled warplane

The United States has finally started to seek answers to one of the most asked questions on the planet – who wins between man and machine?

Incredible details have emerged of the world’s first ever AI controlled warplane taking on a human piloted jet in a historic dogfight that saw both aircraft blasting through the sky at speeds of 1,200mph.

The insane test saw an AI powered modified F-16 – dubbed the X-62A – take on the same jet but with a human in the cockpit.

Both powerful jets went “nose-to-nose” as they battled 2,000ft up in the air, say officials.

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The tests were conducted by the Defense Advanced Research Projects Agency (DARPA) alongside the US Air Force to learn about just how advanced artificial intelligence really is.

Results of the intense air battles have been kept tightly under wraps but they were done to show how safe and effective autonomous fighter jets could be.

Officials were also intrigued to see how close AI powered military jets are to operating safely in a complex war environment.

In the end, 21 test flights were done for the project taking place between December 2022 and September 2023.

Lt. Col. Maryann Karlen, deputy commandant of the test pilot school, explained how it all worked in a fascinating video on the historic dogfight.

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They said: “In September we actually took the X-62 and flew it against a live manned F-16.

“We built up in safety using the manoeuvres – first defensive, then offensive, then high aspect nose-to-nose engagements where we got as close as 2,000 feet at 1,200 miles per hour.”

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