Meta is struggling to rein in its AI chatbots

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In this Newsletter Today:

• Meta is struggling to rein in its AI chatbots

• Nvidia says two mystery customers accounted for 39% of Q2 revenue

• Taco Bell is having second thoughts about relying on AI at the drive-through

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Meta is struggling to rein in its AI chatbots

Meta is modifying its chatbot rules following a Reuters investigation into their potential interaction with minors. The company has trained chatbots to avoid discussing self-harm, suicide, or disordered eating, and to avoid inappropriate romantic banter. The changes are temporary while Meta works on permanent guidelines. Critics have criticized Meta's AI policies for allowing chatbots to engage in romantic or sensual conversations, generate shirtless images of celebrities, and report a man's death. Meta has acknowledged the mistake in allowing chatbots to engage with minors, but has not updated many of its other alarming AI behavior policies.

Nvidia says two mystery customers accounted for 39% of Q2 revenue

Nvidia reported a 56% year-over-year increase in Q2 revenue of $46.7 billion, largely driven by the AI data center boom. However, the company's growth seems to be coming from just a few customers, with a single customer representing 23% of total Q2 revenue and sales to another customer representing 16%. These customers, referred to as "Customer A" and "Customer B," accounted for 20% and 15% of total revenue, respectively. Four other customers accounted for 14%, 11%, another 11%, and 10% of Q2 revenue. These customers are "direct" customers, such as OEMs, system integrators, or distributors, who purchase their chips directly from Nvidia. Indirect customers, such as cloud service providers and consumer internet companies, purchase Nvidia chips from these direct customers. Nvidia's Chief Financial Officer Nicole Kress stated that "large cloud service providers" accounted for 50% of Nvidia's data center revenue, which represented 88% of the company's total revenue.

Taco Bell is having second thoughts about relying on AI at the drive-through

Taco Bell is in an active conversation about the use of AI in its drive-throughs, with over 500 drive-throughs already equipped with voice AI. Chief Digital and Technology Officer Dane Matthews has mixed experiences with technology, stating that sometimes it helps and sometimes surprises him. The company is still deciding how broadly to deploy AI, with flexibility for franchisees to handle their own way. Matthews suggests having a human handle drive-through orders at busy restaurants with long lines. Taco Bell will coach its teams on when to use or monitor AI.

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