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Microsoft CEO calls test-time compute “emergence of new scaling law”

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Top stories today:

  1. Microsoft CEO calls test-time compute “emergence of new scaling law”
  2. SpaceX tests Starship rocket for 6th time, in presence of Trump
  3. Google releases Android 16 developer preview 2 months early
  4. Bitcoin hits $94K amid hopes for crypto-friendly Trump regime

0. Data and calendar

All values as of 6 AM ET / 3 AM PT, other than S&P500 and NASDAQ close (4 PM ET / 1 PM PT).

All times are ET.

Listen to our AI-generated podcast summarizing today’s newsletter (beware the few hallucinations):

1. Microsoft CEO calls test-time compute “emergence of new scaling law”

  • Test-time compute gives AI models more time to “think” before answering.

  • AI training compute (FLOP) is 4.2x/year, “doubling every six months or so”, Satya Nadella stated.

  • Scaling laws are yielding diminishing returns, some industry stakeholders argue.

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Microsoft unveiled the $349 Windows 365 Link mini PC to stream Windows 11 from the cloud

  • The fanless, compact device can connect with 3rd-party monitors and peripherals.

  • Specifications include 8GB RAM, 64GB storage, and an undisclosed Intel processor.

  • April 2025 availability.

Microsoft also unveiled Azure AI Foundry to help developers build AI apps and switch between multiple LLMs

  • In line with the company’s strategy of moving away from relying on OpenAI’s ChatGPT.

An AI interpreter in Teams will allow you to simulate voices in 9 different languages

  • Near-real-time voice interpretation.

  • Available in early 2025 in a limited preview.

2. SpaceX tests Starship rocket for 6th time, in presence of Trump, but aborts booster catch

  • Launched from SpaceX’s Texas site at 5 PM ET on Tue.

  • The rocket's Super Heavy booster splashed down in the Gulf of Mexico instead of completing its planned landing.

  • Oct. 14: Starship’s booster demoed a novel catch-landing method.

  • A “faster/harder” catch-landing was supposed to be seen during Tue. launch.

3. Google releases Android 16 developer preview 2 months early

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