Google overtakes OpenAI

PLUS: Nvidia's new 5x Chip

Author

Barsee
07 Jan

Together with

Howdy, it’s Barsee.

Happy Wednesday, AI family, and welcome to another AI Valley edition.

Today’s climb through the Valley reveals:

  • Nvidia’s next AI chip is 5x faster and coming early

  • xAI raises $20 billion to expand Grok AI models

  • How Google found its footing and overtook OpenAI

  • Stanford AI predicts 130 diseases from a night’s sleep

  • Plus trending AI tools, posts, and resources

Let’s dive into the Valley of AI…

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THROUGH THE VALLEY

Courtesy: Nvidia

Nvidia unveiled its new Vera Rubin AI supercomputing platform at CES, with CEO Jensen Huang saying it delivers five times more compute than the previous generation and will arrive earlier than planned. The system is now in full production and is expected to reach customers in the second half of 2026, about six months ahead of schedule. Vera Rubin combines six chip types and 1,152 GPUs across 16 server racks, designed to lower training time and inference costs. Nvidia says it cuts inference token costs by up to ten times and needs far fewer GPUs to train large mixture-of-experts models, making it well suited for agent-based and reasoning-heavy AI workloads.

xAI has raised $20 billion in an expanded Series E round, exceeding its original $15 billion target. Investors include Valor Equity Partners, Fidelity, Qatar Investment Authority, MGX, and Baron Capital, with strategic backing from NVIDIA and Cisco. The funding will support xAI’s Colossus I and II compute systems, which now total more than one million H100 GPU equivalents. The company is continuing work on Grok 4 and Grok 5, along with voice, image, and video tools. xAI is also pushing into enterprise products, offering team plans, secure data controls, and a developer-focused Collections API.

Google entered late in the AI race, but its position changed quickly. In August, it was seen as trailing competitors, yet by September the Gemini app became the most downloaded app on Apple’s App Store. Two months later, Google released its most powerful Gemini model, briefly pushing it ahead of OpenAI in performance. Years of investment in research, custom chips, and internal leadership changes helped speed up development. Google’s AI efforts are now turning into real revenue, driven by search ads, paid Gemini subscriptions, and sales of its in-house AI hardware.

Researchers at Stanford have released SleepFM, a new AI model that can predict more than 130 health conditions using data from a single night of sleep. The model was trained on 600,000 hours of sleep recordings from 65,000 people, analyzing brain activity, heart rate, breathing, and muscle movement. When these signals fall out of sync, SleepFM flags potential health risks years in advance. In testing, it predicted Parkinson’s with 89% accuracy, dementia at 85%, heart attacks at 81%, and overall mortality risk at 84%. The findings suggest sleep data could become a powerful early warning tool as wearable devices improve.

TRENDING TOOLS

  • Alexa.com > Amazon’s AI assistant experience is now available directly on the web

  • Happy > Control Claude Code using voice commands from your phone

  • 2-b > Built into your browser, it turns any web context into a managed task

  • Doom Coding > Run Claude Code through a remote terminal on your phone

THINK PIECES / BRAIN BOOST

THE VALLEY GEMS

What’s trending on social today:

THAT’S ALL FOR TODAY

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