China's Cyberspace Administration has proposed rules to govern deepfakes and other AI-modified media. The draft regulations would protect people from being impersonated in deepfakes without their consent. More: - The Cyberspace Administration of China is targeting what it calls "deep synthesis service providers," or those that use deep learning and/or virtual reality to edit online content from its original source.
- The rules seek to rein in technologies that use AI and algorithms to alter face and voice data in videos, audio, and text.
- It would create a system for users to file complaints. It also seeks to crack down on deepfakes that disseminate false information.
- In some cases, app stores would be compelled to remove or suspend accounts linked to the illegal deepfake technology.
- First-time violerators would face fines of 10,000 to 100,000 yuan ($1,600 to $16,000).
Zoom-out: - The U.S. government has also expressed plans to regulate deepfakes, which it refers to as "hyper-realistic, digital manipulations of real content that depict events that did not actually occur."
- Last year, Senators Rob Portman (R-OH) and Gary Peters (D-MI) introduced legislation to create a deepfake task force within the Department of Homeland Security.
- The panel would generate a plan to curb the spread of deepfakes, building on previously passed legislation that requires DHS to release an annual study about deepfakes.
UNITE.AI 
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 Mustafa Suleyman, a co-founder of AI research lab DeepMind, is departing Google AI to work as a venture capitalist at VC firm Greylock Partners. Suleyman recently told TechCrunch that the AI ecosystem has matured beyond the hype, and there are many opportunities for AI companies as people better understand its possibilities and limitations. More: - Suleyman left his position as Google VP of AI product management and AI policy to become a venture partner at Greylock.
- He has already invested in startups with Greylock partner Reid Hoffman.
- Hoffman said Greylock believes there is an "abundance of opportunity" for entrepreneurs in AI, which will "touch every aspect of our lives in the coming years."
- In 2010, Suleyman co-founded DeepMind in London with Demis Hassabis and Shane Legg. He was instrumental in raising millions from Elon Musk, Peter Thiel, and other financial backers.
- Google acquired DeepMind for $500M+ in 2014.
CNBC
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 The U.S. Air Force awarded an up to $60M contract to autonomous drone startup Shield AI to support its special operations forces. Shield will provide its AI technology stack and self-piloting drone systems to Special Operations Command via the Strategic Funding Increase program. More: - The program is designed to bankroll innovative startups during lulls in Pentagon acquisition cycles.
- The program awards $15M annually for the first two years and $30M in the third and final year.
- Shield's Hivemind tech stack is designed to make drones fully autonomous and control the vehicles in swarms.
- The contract also calls for Hivemind integration into the Air Force's Agility Prime flying car program.
Zoom-out: - Last year, Shield AI announced it had raised $210M at a $1.25B valuation.
- The startup's Hivemind AI software, a self-driving autonomy stack for military and commercial aircraft, uses algorithms that enable drones to autonomously navigate and do complex maneuvers.
- The U.S. military has used its AI-enabled drones in Middle Eastern conflict zones.
- In 2021, Shield acquired Heron Systems Inc., developer of an AI system that defeated an Air Force pilot in DARPA trials.
- Shield said it would utilize Heron's tech to fast-track AI pilot technologies for fighter jets and drones.
FEDSCOOP
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 Alphabet's Waymo autonomous car company has sued the California DMV in an attempt to keep its crash records and other data private. The company argues the information it provided to the DMV is a trade secret and should be kept from the public. More: - Waymo is also seeking to protect details about its autonomous Driver software and how it handles and analyzes accidents and other emergencies involving its vehicles.
- The case stems from a public records request filed with the DMV. The unidentifed requester has challenged redacted sections of Waymo's DMV documents.
- According to Business Insider, Waymo tripled the size of its fleet in California last year. It also reported a large uptick in crashes and experienced the most autonomous-mode accidents of any self-driving car company.
- The California DMV has granted permits to 60+ companies to operate autonomous test vehicles on its public roads. Most have backup safety drivers.
LOS ANGELES TIMES
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CausaLens, a developer of AI technology that quantifies cause-and-effect and predicts the economy, raised $45M in the first close of a Series A round. The company's no-code platform utilizes "causal inference technology" to introduce more human-like reasoning and cause-and-effect insights into AI systems. More: - The company says its tool performs better than current correlation-based AI technologies, which can miss context and nuance.
- CausaLens wants AI to start to understand the world as humans understand it," said CEO co-founder Darko Matovski.
- The firm exited stealth mode a year ago and has experienced annual revenue growth of more than 500%. Its clients are in financial services, healthcare, government, and other verticals.
- The fresh funding will help it double its workforce and invest in technology. The oversubscribed round was led by Dorilton Ventures and Molten Ventures, with participation from existing investors Generation Ventures and IQ Capital, as well as GP Bullhound and others.
TECHCRUNCH
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AI M&A: - Reliance, the Indian conglomerate run by the country's richest man, bought a majority stake in e-commerce logistics robotics provider Addverb Technologies for $132M.
- American Financial Group said it has acquired Verikai, developer of a machine learning tool for assessing insurance risk, for $120M in cash.
- RadNet purchased AI software developers Aidence and Quantib, which will enable the imaging services firm to launch AI-based screenings for prostate and lung cancer.
- Business collab software company Atlassian announced its acquisition of Percept.ai, a provider of chatbot and virtual agent technology.
- AI-driven cybersecurity firm Vectra AI acquired SaaS posture management supplier Siriux Security Technologies.
- AI data processing firm Torch.AI bought the data-extraction software company B23.
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 |  | Beth is an Inside Analyst and a former public policy/investigative reporter. She has covered AI, VR, technology, and e-commerce for Inside. When she's not busy writing, she's hiking in Arizona's desert, playing pickleball, or trying out new Mexican food recipes. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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