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Andrea Korney, Vice President of Sustainability and Special Advisor for J.S. Held’s ESG & EHS Digital Solutions group, has been at the forefront of sustainability for over 25 years. Her extensive career in the energy, metals, and extraction industries has uniquely positioned her to navigate the evolving landscape of environmental responsibility and technology. In a recent interview, Korney shared her perspective on the intersection of artificial intelligence (AI) and sustainability, a topic of increasing relevance as businesses integrate AI technologies while being held to higher sustainability standards.

Andrea Korney’s Industry-Spanning Background

Korney’s path to becoming a leader in sustainability is deeply rooted in her experience in various industries, particularly in oil and gas, power generation, and heavy metals. “My career began in energy at a time when sustainability wasn’t part of the coreconversation,” she recalls. Korney learned how to navigate complex regulatory environments while advocating for more responsible business practices. “Working in oil and gas, you couldn’t avoid the environmental side,” she says, noting that from early on, she became deeply involved in ensuring that her projects complied with emerging emissions and environmental standards. Providing leadership, strategic planning, and business development support to corporations, she has developed strong alliances with trade associations, diversity organizations, tribes, and unions. Her contributions to supplier diversity and Native American engagement in energy led to recognition by Bloomberg’s Sustainability Index in 2017. Ms. Korney is an active panelist and diversity advocate, contributing to many articles and authoring sustainability whitepapers. Her commitment to North American equitable economic development is evidenced by her participation on the advisory committee for the Supplier Diversity Advisory Council, energy advisory to the Latino Coalition, and Canadian, Aboriginal, Minority Supplier Council (CAMSC) board membership.

With a background in environmental science, Korney’s expertise covers technical areas like emissions reduction, water treatment, and hazardous materials management. Her career took her across the globe, from pipeline projects in the Middle East to power generation initiatives in North America. This vast experience equipped her with a comprehensive understanding of environmental regulations and the challenges companies face in balancing profitability with sustainability.

Her experience in regulated industries also gave her a deep respect for compliance. “The oil and gas industry is highly regulated, and that helped me develop a strong foundation in navigating environmental standards,” she explains. She managed large scale projects that required detailed emissions monitoring, water treatment, and environmental impact assessments, giving her firsthand experience in dealing with sustainability challenges in complex systems. This experience is key to her current work, advising businesses on how to embed sustainability into their operations.

The Role of Energy in AI Development

Korney begins by emphasizing the energy demands of AI, noting how critical it is for developers and businesses to understand the environmental impact of their AI tools. “There’s such a huge draw on energy resources,” she says, explaining that energy consumption is at the heart of sustainability challenges in the AI sector. “How that energy is used in any business is a major focus in sustainability.”

In her view, the pressure is building on companies not only from regulators but also from clients who expect AI solutions that align with environmental goals. Energy usage, whether in data centers or in developing machine learning models, is scrutinized across industries. “The mission and energy usage vary depending on where in the world you are,” Korney explains, underscoring the complexity of addressing these issues on a global scale. "We've done actual analysis on AI carbon footprints," she reveals, indicating that companies in the tech sector are already grappling with the environmental impact of their AI models. This work highlights the growing demand for tools that measure the sustainability of AI applications.

A Foundation in Regulation

Korney’s background in highly regulated industries like oil, gas, and power generation gives her a deep understanding of the regulatory frameworks companies must navigate. "Working in oil and gas, you couldn’t avoid the environmental side,” she says,recounting her experience with pipeline projects that required extensive documentation to meet emissions targets.

For AI, these regulatory concerns are emerging. But Korney sees a parallel with other industries. “AI companies are going to face similar pressures,” she predicts. “Right now, AI tools are being adopted because they’re cost-effective, but sustainability will soon be a bigger factor.”

Tools and Technologies for Measuring Impact

When discussing how companies can better track and manage their sustainability efforts, Korney points to the growing role of technology. At J.S. Held, she and her team use advanced tools to gather data across environmental sectors and the social side of ESG (Environmental, Social, and Governance). “A lot of these tools are starting to implement AI in different capacities,” she says, pointing out that technology can help companies streamline their sustainability reporting and compliance.

The reporting process itself varies depending on the industry and region. “In Europe, regulations like CSRD have real teeth,” Korney says. In contrast, U.S. regulations can be more fluid, often influenced by politics. This variance means that companies must tailor their approaches based on local regulations, which often conflict. “You have to really understand the regulatory requirements in the region and industry you’re operating in,” she advises.

AI’s Dual Impact: Energy and Employment

Beyond energy usage, Korney highlights a second, less obvious impact of AI: its social consequences. “There’s a concern about the jobs that AI will replace,” she says, noting that certain demographics may be disproportionately affected. As AI continues to automate tasks across industries, companies must consider the social implications of reducing the need for human workers in certain roles.

For Korney, addressing these concerns requires a balanced approach, integrating AI into business operations in a way that supports both sustainability goals and social responsibility. “Companies are adopting AI because it’s cheaper, but they also need to be aware of the broader impacts,” she believes.

Practical Solutions for Reducing Energy Consumption

When asked about actionable steps businesses can take to minimize their environmental footprint, Korney is clear that green energy is key. “All types of green energy are better than fossil fuels,” she says. Implementing solutions like microgrids—localized energy grids that can operate independently of the traditional grid—can significantly reduce a company’s energy consumption. Solar generation, too, offers opportunities for companies to generate their own energy, reducing their reliance on conventional power sources.

In addition to energy solutions, Korney emphasizes the importance of rethinking infrastructure. “Decreasing your footprint through innovative building technologies is another way to mitigate your impact,” she advises. This can include using renewable energy sources like solar and wind, as well as incorporating energy-efficient designs and systems in facilities.

Carbon Offsets and the Risks of Greenwashing

Another area Korney touches on is the growing market for carbon offsets—credits that companies purchase to compensate for their carbon emissions. While these offsets can be part of a broader sustainability strategy, Korney cautions against relying too heavily on them without fully understanding their limitations. “There are scams out there around carbon offsets,” she warns. Voluntary markets, where many of these credits are sold, pose higher risks because the projects are not always verified or validated.

“The regulated market is more expensive but offers more security,” she adds. Companies need to assess their risk tolerance when purchasing offsets and consider the types of projects they are supporting. “There’s concern around reforestation and deforestation credits, for example,” Korney explains. "If the trees are removed before the expected carbon sequestration period, the project may not deliver the intended impact."

AI and Sustainability: A Competitive Advantage

Despite the challenges, Korney is optimistic about the future of AI and sustainability. She believes that companies that proactively manage their carbon footprint will gain a competitive edge in the marketplace. “If a company can say that their AI services have a lower carbon footprint than their competitors, that adds tremendous value,” she says.

For businesses, this means understanding their sustainability impact from the ground up. “At J.S. Held, we help companies write sustainability strategies that align with their growth plans,” Korney explains. The key is integrating sustainability into every aspect of the business, from product development to customer engagement.

‍Pressure from Consumers, Investors, and Regulators

In today’s market, companies face pressure from three primary sources: consumers, investors, and regulators. According to Korney, all three play important roles, though their influence varies by industry. “Not everyone is at the mercy of investors,” she points out. Some companies, particularly those operating business-to-business, may be more concerned with regulatory compliance than consumer demand.

However, as consumers become more educated and more vocal about sustainability, their influence is growing. “Consumers are much more knowledgeable now than they were even a few years ago,” Korney says. This shift means that companies must be prepared to meet higher expectations around sustainability if they want to maintain their market position.

The Future of Sustainability and AI

Looking ahead, Korney remains bullish on the long-term impact of sustainability initiatives, even as regulations evolve. "The U.S. government is changing, and there may be some shifts," she says, but she is confident that global trends will continue to drive progress. “Consumers are more educated, and regulations in places like California will continue to push for better behavior.”

For companies navigating the AI space, the message is clear: sustainability is no longer optional. As Korney puts it, “Balancing sustainability with commercial strategy is critical.” Companies that embrace this balance will not only meet regulatory requirements but also gain the trust of consumers and investors alike.

In a rapidly changing world, where AI is transforming industries and environmental concerns are top of mind, the intersection of technology and sustainability is becoming a defining issue for businesses. With experts like Andrea Korney leading the way, there is hope that AI can be a force for both innovation and environmental responsibility.

Andrea will be a featured speaker and panelist on Arc AI’s upcoming webinar “AI & Sustainability”.

You can follow Andrea at: www.linkedin.com/in/andrea-korney-00063614

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In the pursuit of true AI ownership, sustainability and efficiency are no longer optional—they are essential. ARC's Reactor Mk.1 is a groundbreaking model developed to address the environmental and operational challenges of large-scale AI deployments. By combining unparalleled energy efficiency with top-tier performance, Reactor Mk.1 empowers organizations to own their AI fully, responsibly, and sustainably.

Introducing the ALT Metric: A New Benchmark for AI Sustainability

At the core of Reactor Mk.1's innovation is ARC's unique Atmospheric Loading Threshold (ALT) metric. The ALT metric serves as a quantifiable measure of an AI model's environmental footprint, combining performance with energy usage. A higher ALT score indicates that a model delivers significant performance while consuming minimal energy—setting a new industry standard for sustainable AI.

Reactor Mk.1 boasts an impressive ALT score of 0.0023, a stark contrast to GPT-4's ALT score of 0.00000000606. This significant difference showcases Reactor Mk.1's superior efficiency and highlights its role in encouraging companies to select AI models that align with their sustainability goals.

Energy Efficiency and Reduced Carbon Footprint

Owning your AI shouldn't come at the expense of the environment. Reactor Mk.1 has demonstrated high-performance output at a fraction of the energy cost required by other models. Utilizing efficient L4 and A100 GPU configurations, Reactor Mk.1 consumes under 40,000 watt-hours for training and inference, compared to the billions of watt-hours needed for models like GPT-4. This dramatic reduction translates to substantial decreases in carbon emissions, minimizing the environmental impact of large-scale AI deployment.

Minimal Water Usage and Cooling Requirements

Traditional AI systems often require significant water resources to cool high-powered servers during training and inference, contributing to environmental strain, especially in areas facing water scarcity. Reactor Mk.1 is engineered to optimize energy use with minimal cooling needs, conserving water resources and supporting eco-friendly operational practices. This efficiency makes Reactor Mk.1 ideal for companies seeking to balance performance with environmental responsibility.

Performance Without Compromise

Reactor Mk.1 proves that sustainability doesn't mean sacrificing capability. It consistently achieves a performance score of 92.7%, comparable to outputs of larger, more resource-intensive models. Its streamlined architecture allows it to deliver the necessary computational power for complex AI tasks without the environmental and financial burdens typically associated with high-performance AI models.

Comprehensive AI Ownership with ARC Solutions

By integrating KeyGuard HE and Reactor Mk.1, ARC offers companies a pathway to complete AI ownership. This ownership extends beyond access to advanced technology; it encompasses control over every layer of AI utilization—security, cost, scalability, and environmental impact.

Secure Data Management and Compliance

KeyGuard HE's robust encryption and blockchain capabilities ensure that companies can manage and process data securely, eliminating fears of breaches or compliance issues. This control is critical for industries like finance, healthcare, and legal, where data privacy is paramount. By offering a fully compliant, secure platform, ARC enables these sectors to innovate with AI while safeguarding sensitive data.

Substantial Cost and Infrastructure Savings

The combined efficiency of KeyGuard HE and Reactor Mk.1 reduces the need for costly in-house data centers, freeing up financial resources for strategic growth and innovation. KeyGuard HE's plug-and-play approach allows companies to adopt AI quickly, without the infrastructure investments that often delay deployment. These savings enable businesses to redirect capital toward other initiatives, fostering a more agile and financially sound approach to AI.

Environmentally Responsible AI Usage

Reactor Mk.1 embodies ARC's commitment to sustainability, setting a new industry standard for responsible AI. With its industry-leading ALT score and minimal water use, Reactor Mk.1 supports companies in meeting sustainability benchmarks while maintaining their competitive edge. As industries and governments increasingly scrutinize corporate environmental practices, Reactor Mk.1 offers a model that aligns AI usage with broader sustainability efforts.

Enhanced Accessibility Across the Organization

With ARC's solutions, AI ownership becomes more inclusive and accessible, empowering employees at all levels to work with AI. The intuitive design of KeyGuard HE ensures that non-technical team members can securely share and use AI models, democratizing AI within the organization and enabling collaborative innovation.

Owning Your AI: A Strategic Shift Toward the Future

Owning your AI with ARC solutions is more than a technical or logistical accomplishment—it's a strategic move toward secure, efficient, and sustainable AI that is primed for the future. KeyGuard HE and Reactor Mk.1 provide organizations with the ability to control and leverage AI without the burdens of traditional infrastructure or environmental impact. This not only safeguards data and reduces costs but also aligns AI usage with regulatory and environmental goals.

Our technologies are paving the way for a future where businesses can rely on AI that is as secure as it is sustainable. By integrating these solutions, organizations can truly, truly own their AI, achieving the right balance of innovation, compliance, and responsibility. As AI continues to evolve, we at ARC are leading the charge to ensure that this powerful technology remains accessible, ethical, and environmentally sound.

By choosing ARC's solutions, you're not just investing in advanced AI technology—you're committing to responsible innovation and taking control of your organization's AI future. Let's work together to build a sustainable, secure, and efficient AI landscape where you own your AI in every sense.

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WILMINGTON, Del., July 16, 2024 — ARC Solutions, Inc., a deep tech company developing the next generation of efficient AI and secure Web3 products, today announced that ARC Reactor GenAI (“Reactor”) is now available to the general public. Launched in early June, Reactor is designed to provide faster, more accurate results while requiring dramatically fewer energy-intensive computational resources. The public release of Reactor GenAI also features enhancements to the platform’s voice interaction capabilities, the ability to process information in images, and improvements to the end-user experience.

In the weeks ahead of the public release, more than 10,000 early access wait-list users had the opportunity to enjoy average response times of less than six seconds from Reactor, which consumed roughly one-half Watts per response.

In three industry benchmarks, ARC Reactor has outperformed the leading AI models in the world in raw scores but at an unprecedented level of training energy efficiency. Through rapid ontological classification, Reactor opens up powerful new possibilities for applications such as custom search engines, content recommendation systems, and personalized AI assistants without the massive computing and energy demands or threats to data privacy of other AI models.

“When compared to human cognition, we’ve taken an approach to AI model training that more closely resembles the difference between truly reading and understanding a book compared to cramming for a test with a book summary, and that is what makes Reactor a true breakthrough,” said TJ Dunham, CEO at ARC Solutions.

“Our ontological approach to AI model training and model efficiency, Reactor, can quickly deliver accurate responses when run against general, custom, or private datasets. Together, these are the keys that will unlock the true productive potential of AI at a broad scale.”

With a technical roadmap focused on data classification that makes small language models energy-efficient and highly capable, ARC is building an AI platform that enables local models, privacy, data sovereignty, and scalability from individual endeavors to enterprise data.

You can join Reactor AI here. To learn more about ARC Solutions, please visit www.helloarc.ai.

ARC

ARC Solutions, Inc. is a deep tech company developing the next generation of efficient AI and secure Web3 products. Founded in 2023 to solve the problem of blockchain risk detection, the company now develops foundational AI technology that prioritizes efficiency, security, data privacy, and user control. Leveraging startup resources from Google, ARC Solutions delivers advanced AI tools and models for a wide range of applications. With the ARC Reactor AI as its flagship product, the company is in charge of creating next-generation AI solutions that meet users’ unique needs and expectations without the ecological impact of peer group companies. ARC was built on the belief that AI should work in the service of humanity while being simple and transparent enough to be accessible to as many humans as possible.

CONTACT INFORMATION:

Technica Communications for ARC Solutions, Inc.

Cait Caviness

arc@technica.inc

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The World's First Climate-Positive AI Model

At ARC, we're thrilled to announce a groundbreaking achievement: we've developed the world's first AI model that absorbs more carbon than it emits. This isn't just an incremental improvement—it's a revolutionary step towards a sustainable future where technology and environmental responsibility go hand in hand.

Leading the Charge in Sustainable AI

Transforming AI's Environmental Footprint

Artificial Intelligence has transformed industries but often at the cost of significant environmental impact. Traditional AI models consume massive amounts of energy and water, contributing to substantial carbon emissions. Recognizing this challenge, we set out to create an AI that doesn't just minimize its environmental footprint but actually reverses it.

First in the World to Achieve Climate Positivity

We're proud to be the first company globally to achieve a truly climate-positive AI model. For every dollar invested in our AI, we're removing 50% more carbon from the atmosphere than we produce. This means your investment not only powers cutting-edge AI but also actively contributes to reducing global carbon levels.

How We've Made AI Climate Positive

Innovative Hardware Design for Energy Efficiency

Building on our Reactor Mk.1, we've integrated specialized hardware designed for ultra-low power consumption. Our AI model uses up to 85% less electricity than standard models, drastically reducing energy usage without compromising performance. This leap in efficiency is a game-changer for both operational costs and environmental impact.

Introducing the ALT Metric: A New Standard for Sustainability

We've developed the Atmospheric Loading Threshold (ALT) metric, a pioneering benchmark that measures an AI model's environmental efficiency. Our AI's exceptional ALT score showcases that it consumes only a fraction of the energy typically required by comparable models, setting a new industry standard and encouraging others to prioritize sustainability.

Direct Carbon Absorption Initiatives

But we didn't stop at energy efficiency. We've embedded direct carbon absorption mechanisms into our operations. By partnering with cutting-edge carbon sequestration projects—like reforestation efforts and innovative carbon capture technologies—we ensure that for every unit of carbon our AI emits, we remove 1.5 units from the atmosphere. This results in a net-positive carbon impact, making our AI a proactive force against climate change.

Investing in Renewable Energy and Advanced Cooling

Our data centers are powered by 100% renewable energy sources, including solar and wind power, reducing our reliance on fossil fuels. Additionally, we've implemented advanced cooling systems that recycle water and utilize air cooling, drastically minimizing water usage and further reducing our environmental footprint.

Why This Matters to You

Making a Positive Impact with Every Dollar

By choosing our AI solutions, you're not just benefiting from advanced technology—you're investing in the planet's future. Every dollar spent on our AI contributes to removing 50% more carbon from the atmosphere than is produced, making your investment climate positive. It's a tangible way to make a difference while achieving your business objectives.

Lower Operational Costs and Higher Efficiency

Our AI's energy efficiency doesn't just help the environment—it also reduces your operational costs. Lower energy consumption means lower electricity bills and reduced cooling expenses. This allows you to scale your AI applications economically, providing a strong return on investment.

Strengthening Corporate Responsibility and Compliance

In an era where consumers and regulators are increasingly focused on sustainability, our climate-positive AI helps your business meet and exceed environmental standards. It enhances your corporate social responsibility profile, supports compliance with green regulations, and appeals to stakeholders who value eco-friendly practices.

Pioneering the Future of Sustainable AI

Setting a New Industry Benchmark

We're leading the way in showing that technology can be both powerful and environmentally responsible. Our climate-positive AI isn't just a product—it's a statement that innovation and sustainability can—and should—go together. We're setting a new benchmark for the industry, and we invite others to join us in this crucial endeavor.

Aligning Business Growth with Environmental Stewardship

We believe that businesses shouldn't have to choose between growth and sustainability. With our AI solutions, you can drive innovation, outperform competitors, and contribute positively to the environment. It's a win-win situation that positions your company as a forward-thinking leader in your industry.

Join Us in Making a Difference

Be Part of the Climate-Positive Movement

We're excited to partner with businesses and individuals who share our commitment to sustainability. By integrating our climate-positive AI into your operations, you're not only enhancing your capabilities but also taking a stand for the planet. Together, we can create a ripple effect that drives significant environmental change.

Invest in a Sustainable Future

As a potential investor, supporting ARC means backing a company that's at the forefront of sustainable technology. Our innovative approach positions us for significant growth in a market that's increasingly valuing environmental responsibility. Your investment accelerates our mission and contributes to a more sustainable future for all.

https://www.arc.ai/book-a-demo 

Our AI model proves that it's possible to have cutting-edge technology that benefits both your business and the planet. Being the first in the world to achieve a climate-positive AI, we're redefining what's possible in the industry. When you choose ARC, you're not just getting superior AI solutions—you're making a meaningful contribution to the fight against climate change.

Join us in revolutionizing AI and making a real difference. Together, we can create a future where technology and sustainability go hand in hand.

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Secure, AI-Powered Key Management Gives Organizations Complete Control over Security and Access, Safeguarding Their Intellectual Property

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_{OKLAHOMA CITY – Nov 19, 2024}

‍ARC today announced KeyGuard HE, a secure, enterprise-controlled AI solution that lets companies reap the benefits of AI without risking their intellectual property being used for training and inference by Large Language Models (LLMs) from public cloud AI solutions like ChatGPT, Gemini, Anthropic, as well as others. 

With experts warning of the perils of sharing confidential or even personal information with AI chatbots, security conscious enterprises are banning employees from using public AI tools for fear of losing the intellectual property they have created, to say nothing of the resources invested.

AI expert Mike Wooldridge, a professor of AI at Oxford University, told The Guardian last year, “you should assume that anything you type into ChatGPT is just going to be fed directly into future versions of ChatGPT.” And that can be everything from computer code to trade secrets. 

With KeyGuard HE, corporate users can experience the power of AI with confidence that they hold complete control over the keys to security, and that no untrusted vendor, or anyone else can ever access or view that data without permission,” said TJ Dunham, Founder & CEO of ARC. “The model can’t leak your data, as it is encrypted and customers can revoke key access at any time. KeyGuard HE empowers users to manage their private keys with full transparency and trust by using blockchain-based smart contracts to provide verifiable proof-of-actions.

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KHE Use Cases:

• Financial institutions: With KHE, financial institutions can perform real-time encrypted data analysis, leveraging AI models for trend analysis, fraud detection, and customer insights without exposing sensitive financial records or violating compliance regulations. 
• Hospitals and health care: With KHE, hospitals and research institutions can securely share and analyze encrypted patient data across organizations, enabling AI-driven medical research and patient diagnostics, all while complying with strict privacy laws like HIPAA. 
• Enterprises: With KHE enterpriseorganizations can track and audit their supply chain activities using smart contracts and KHE.

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Key Features of KeyGuard HE:

• Data Privacy at Scale–the combination of HE and LLMs–allows large-scale computations to be performed securely, without compromising on privacy or security.
• Homomorphic and CKKS Encryptionenables computations on encrypted data, ensuring privacy throughout the process. 
• LLM Integration allows users to plug and play any AI model and encrypt it and its responses in seconds.  
• Public encrypted provides trustless user- control for key management, and validation for key deletion or modification requests. 
• Enhanced User Transparency allows every user action to be traceable and verified, ensuring integrity and trust in the system. 

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About ARC Solutions 

ARC is a deep tech company developing the next generation of efficient AI and secure Web3 products. ARC was built on the belief that AI should work in the service of humanity, the environment it needs to exist, and being simple and transparent enough to be accessible to as many humans as possible. Founded in 2023 and headquartered Oklahoma City, Arc has significant operations in Wilmington, Del., and Zurich, Switzerland. 

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MEDIA CONTACT: 

contact@arc.ai

Mustafa Suleyman, the CEO of Microsoft AI, is no stranger to the complex landscape of artificial intelligence. As a prominent figure in the field, he has observed the rapid development of AI and remains both hopeful and cautious. In a recent interview with  Steven Bartlett, Diary Of A CEO, Suleyman shared many thoughtful insights he also shared in his book “The Coming Wave: Technology, Power, and the Twenty-First Century's Greatest Dilemma”.

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Speaking on the future of AI, Suleyman shares bold predictions on how AI could reshape society while also sounding alarms about the dangers of unchecked advancement. He believes that AI, if mismanaged, could lead to significant risks, from power consolidation among a few actors to a race for dominance that ignores the broader implications of safety and ethics. Suleyman’s solutions advocate for a comprehensive, cooperative approach, blending technological optimism with stringent regulatory foresight.

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Predictions: The Dawn of a New Scientific Era

Suleyman envisions an era of unprecedented scientific and technological growth driven by artificial intelligence. He refers to AI as an “inflection point,” emphasizing that its capabilities will soon bring humanity to the brink of a monumental transformation. In the coming 15 to 20 years, Suleyman foresees that the power of AI to produce knowledge and scientific breakthroughs will drive a paradigm shift across industries, reshaping fields from healthcare to energy.

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“We’re moving toward a world where AI can create knowledge at a marginal cost,” Suleyman says, underscoring the economic and social impact that this development could have on a global scale. According to him, the revolutionary aspect of AI lies in its potential to democratize knowledge, making intelligence and data-driven solutions accessible to “hundreds of millions, if not billions, of people.” As this accessibility increases, Suleyman predicts, societies will become “smarter, more productive, and more creative,” fueling what he describes as a true renaissance of innovation.

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In this future, Suleyman envisions AI assisting with complex scientific discoveries that might have otherwise taken decades to achieve. For instance, he highlights that AI could speed up the development of drugs and vaccines, making healthcare more accessible and affordable worldwide. Beyond healthcare, he imagines a world where AI assists in reducing the high costs associated with energy production and food supply chains. “AI has the power to solve some of the biggest challenges we face today, from energy costs to sustainable food production,” he asserts. This optimistic view places AI at the heart of global problem-solving, a force that could potentially mitigate critical resource constraints and improve quality of life for millions.

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Risks: Proliferation, Race Conditions, and the Misuse of Power

While Suleyman is enthusiastic about AI’s potential, he acknowledges the accompanying risks, which he describes as both immediate and far-reaching. His concerns primarily revolve around the accessibility of powerful AI tools and the potential for their misuse by malicious actors or unregulated entities. Suleyman cautions against a world where AI tools, once they reach maturity, could fall into the wrong hands. “We’re talking about technologies that can be weaponized quickly and deployed with massive impact,” he warns, emphasizing the importance of limiting access to prevent catastrophic misuse.

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One of Suleyman’s significant concerns is what he calls the “race condition.” He argues that as nations and corporations realize the vast economic and strategic advantages AI offers, they may accelerate their development programs to stay ahead of competitors. This race for dominance, he suggests, mirrors the Cold War nuclear arms race, where safety often took a backseat to competitive gain. “The problem with a race condition is that it becomes self-perpetuating,” he explains. Once the competitive mindset takes hold, it becomes difficult, if not impossible, to apply the brakes. Nations and corporations may feel compelled to push forward, fearing that any hesitation could result in losing their competitive edge.

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Moreover, Suleyman is concerned about how AI could consolidate power among a few key players. As the technology matures, there is a risk that control over powerful AI models will reside with a handful of corporations or nation-states. This concentration of power could result in a digital divide, where access to AI’s benefits is unevenly distributed, and those without access are left behind. Suleyman points to the potential for AI to be used not only as a tool for innovation but as a means of control, surveillance, and even repression. “If we don’t carefully consider who controls these technologies, we risk creating a world where a few actors dictate the future for all,” he warns.

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Potential Scenarios of AI Misuse

Suleyman’s fears are not unfounded, given recent developments in autonomous weapon systems and AI-driven cyber-attacks. He points to scenarios where AI could enable the development of autonomous drones capable of identifying and targeting individuals without human oversight. Such capabilities, he argues, would lower the threshold for warfare, allowing conflicts to escalate quickly and with minimal accountability. “The problem with AI-driven weapons is that they reduce the cost and complexity of launching attacks, making conflict more accessible to anyone with the right tools,” Suleyman explains. The prospect of rogue states or non-state actors acquiring these tools only amplifies his concerns.

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Another potential misuse of AI involves cyber warfare. Suleyman highlights that as AI-driven systems become more sophisticated, so do cyber threats. Hackers could potentially deploy AI to exploit vulnerabilities in critical infrastructure, from energy grids to financial systems, creating a digital battlefield that is increasingly difficult to defend. “AI has the potential to turn cyber warfare into something far more dangerous, where attacks can be orchestrated at a scale and speed that no human can match,” he says, advocating for a global framework to mitigate these risks.

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Solutions: The Precautionary Principle and Global Cooperation

Suleyman believes that the solution to these challenges lies in adopting a precautionary approach. He advocates for slowing down AI development in certain areas until robust safety protocols and containment measures can be established. This precautionary principle, he argues, may seem counterintuitive in a world where innovation is often seen as inherently positive. However, Suleyman stresses that this approach is necessary to prevent technology from outpacing society’s ability to control it. “For the first time in history, we need to prioritize containment over innovation,” he asserts, suggesting that humanity’s survival could depend on it.

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One of Suleyman’s proposals is to increase taxation on AI companies to fund societal adjustments and safety research. He argues that as AI automates jobs, there will be an urgent need for retraining programs to help workers transition to new roles. These funds could also support research into the ethical and social implications of AI, ensuring that as the technology advances, society is prepared to manage its impact. Suleyman acknowledges the potential downside—that companies might relocate to tax-favorable regions—but he believes that with proper global coordination, this risk can be mitigated. “It’s about creating a fair system that encourages responsibility over short-term profit,” he explains.

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Suleyman is a strong advocate for international cooperation, especially regarding AI containment and regulation. He calls for a unified global approach to managing AI, much like the international agreements that govern nuclear technology. By establishing a set of global standards, Suleyman believes that the risks of proliferation and misuse can be minimized. “AI is a technology that transcends borders. We can’t manage it through isolated policies,” he says, underscoring the importance of a collaborative, cross-border framework that aligns the interests of multiple stakeholders.

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The Role of AI Companies in Self-Regulation

In addition to international regulations, Suleyman believes that AI companies themselves have a responsibility to act ethically. He emphasizes the need for companies to build ethical frameworks within their own operations, creating internal policies that prioritize safety and transparency. Suleyman suggests that companies should implement internal review boards or ethics committees to oversee AI projects, ensuring that their potential impact is thoroughly assessed before they are deployed. “Companies need to take a proactive approach. We can’t rely solely on governments to regulate this,” he says, acknowledging that corporate self-regulation is a critical component of the broader containment strategy.

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Suleyman also advocates for transparency in AI development. While he understands the competitive nature of the tech industry, he argues that certain aspects of AI research should be shared openly, particularly when it comes to safety protocols and best practices. By creating a culture of transparency, he believes that companies can foster trust among the public and reduce the likelihood of misuse. “Transparency is key. It’s the only way to ensure that AI development is held accountable,” he says, noting that companies must strike a balance between proprietary innovation and public responsibility.

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Education and Public Awareness: Preparing Society for an AI-Driven Future

Suleyman is adamant that preparing society for AI’s future role requires more than just regulatory and corporate oversight—it demands public education. He argues that as AI becomes an integral part of society, people need to be informed about its capabilities, risks, and ethical considerations. Suleyman calls for educational reforms that integrate AI and digital literacy into the curriculum, enabling future generations to navigate an AI-driven world effectively. “We need to prepare people for what’s coming. This isn’t just about technology; it’s about societal transformation,” he explains.

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Furthermore, Suleyman believes that fostering a culture of AI literacy will help to democratize the technology, reducing the digital divide between those who understand AI and those who don’t. He envisions a world where individuals are empowered to make informed decisions about how AI impacts their lives and work, rather than passively accepting the technology’s influence. “It’s essential that everyone—not just the tech community—understands what AI can and cannot do,” he says, advocating for broader public engagement on these issues.

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A Balanced Approach to AI Development

Suleyman’s insights into the future of AI highlight the delicate balance between innovation and caution. On one hand, he is optimistic about AI’s potential to address some of humanity’s most pressing challenges, from healthcare to sustainability. On the other, he is acutely aware of the dangers that come with such powerful technology. Suleyman’s vision is one of responsible AI development, where the benefits are maximized, and the risks are carefully managed through cooperation, regulation, and public education.

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As he continues to lead Microsoft AI, Suleyman remains a pivotal voice in the conversation around AI’s future. His advocacy for a precautionary approach and global cooperation serves as a reminder that while AI holds immense promise, it also comes with profound responsibilities. For Suleyman, the ultimate goal is clear: to create a world where AI not only serves humanity but does so in a way that is safe, ethical, and sustainable.

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Listen to the full interview with Mustafa Suleyman on Youtube

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An Interview with Carolina Thompson, Co-founder of Thompson Real Estate and the former Director of Sustainability Strategy and Initiatives at Freddie Mac

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In an era of heightened environmental awareness, Carolina Thompson stands at the intersection of sustainability and real estate, where she's pushing boundaries through her own business initiatives and extensive industry experience. As the co- founder of Thompson Real Estate Consulting and a former sustainability leader at Freddie Mac, Thompson has a rich background in environmental strategy, sustainable finance, and real estate, which she now channels into creating sustainable housing. Thompson's journey reflects a blend of practical ambition and a deep understanding of the complex relationships between real estate, sustainability, and market forces.

“I think sustainability in real estate is more than a trend; it's about creating efficient, resilient homes that meet both energy and comfort needs,” Thompson asserts. Now focusing on the Home Energy Rating System (HERS), she explains that homes with lower ratings are more efficient, reduce greenhouse gas emissions, and are cost-effective in the long run. This efficiency, she notes, comes from retrofitting old homes with updated insulation, HVAC systems, and windows, as well as building new, eco-friendly units. “When a home is HERS-rated, it means a third-party has assessed its energy efficiency," she says. "HERS rated homes with lower scores save on utilities and can reduce stress on the grid, which ultimately translates to lower greenhouse gas emissions.”

Her consultancy firm follows a “buy and rent” model, focusing on eco-conscious renters who prioritize sustainability. “It's about providing renters with a choice,” she says. “They may not be ready to buy, but they can choose to live in homes that meet high energy efficiency standards, knowing they’re contributing to sustainability.” She believes that these properties attract a unique tenant who appreciates the blend of safety, comfort, and environmental responsibility.

Reflecting on her time at Freddie Mac (Federal Home Loan Mortgage Corporation), Thompson describes the transition to sustainability as gradual but impactful. “Freddie Mac was always doing social and governance work,” she recalls, “but the environmental piece was where the real effort went.” Thompson contributed to leading the organization in developing initiatives and protocols that addressed both environmental and social governance, setting a benchmark for sustainable finance. Her team was tasked with reporting on various ESG topics to include climate-related risks, especially as they may impact Freddie Mac’s portfolio, as well as the physical properties the company managed nationwide. “We needed to tell the climate story from a collateral and investor risk perspective,” she says. “It wasn't just about how we handle  the purchase of loans and securitizations; it was about how these properties withstand extreme climate conditions.”

Sustainability reporting, however, presented its own challenges. Investors demanded transparency, but the standards were varied and complex. “There are so many standards – SASB, GRI, ICMA – it can be overwhelming,” she admits. Thompson and the Freddie Mac team ultimately chose the Sustainability Accounting Standards Board (SASB) and the International Capital Market Association (ICMA) standards, which provided a framework for measuring sustainability that aligned with U.S. and European markets. “At the time leadership didn't want to be the leader in an ever evolving space,” she recalls. “Our leadership wanted to stick to the most fact-based, third-party vetted reporting, and that approach was successful.”

Beyond real estate, Thompson recognizes the emerging role of artificial intelligence (AI) in sustainability, though she admits there is a trust gap. “Artificial intelligence was identified in our materiality assessment; it’s impossible to avoid,” she says. “But internally, there was reluctance to share information that may put consumer data at risk. Tech teams are careful about what they share because of security concerns.” Despite these challenges, she sees AI as a powerful tool for capturing data on home energy efficiency, monitoring renewable energy outputs, and analyzing the sustainability impact of various upgrades in both single-family and multifamily real estate.

The push toward green building also brings up economic factors, with Thompson noting federal incentives such as the Inflation Reduction Act, which benefits both consumers and builders. “Federal and state incentives really help,” she says. “For example, if you’re a builder and your home is Energy Star-certified, there’s a significant subsidy. For the consumer, it’s a win too – it can boost the home’s value.” Freddie Mac research suggests that energy efficient certifications can increase home value by three to five percent, making it easier for eco-conscious homeowners to justify the investment.

However, Thompson is candid about the broader challenges of the sustainability movement, particularly around issues of “greenwashing,” where companies may promote their eco-friendly credentials more aggressively than their actions justify. “Sometimes I felt it wasn’t genuine,” she reflects. “A lot of energy went into measuring emissions when more investment could have gone to initiatives to reduce those emissions.” Thompson sees the disconnect between idealism and reality, suggesting that greater emphasis on practical solutions would yield stronger environmental impact.

As the conversation turns to generational wealth transfer and shifting priorities, Thompson notes that millennials, often more environmentally conscious, are starting to influence investment decisions. “Millennials want to know where their money is going,” she observes. “They’re outspoken and care about sustainability, which pushes investment managers to provide more data and transparency.” This influence, she believes, is driving large investment firms toward sustainable initiatives, especially as millennials are set to inherit significant wealth in the coming years.

In wrapping up, Thompson offers advice for those in other sectors facing the challenge of implementing sustainability. “Start by benchmarking. Understand what your competition is doing and where your company’s appetite for transparency and innovation lies,” she advises. “Not everyone needs to be leading, but that doesn’t mean you can’t establish one or two ambitious goals.” By setting realistic goals and understanding where her organization stood within the industry, Thompson was able to help develop a sustainability strategy that balanced growth with responsible practices.

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Her journey in sustainable real estate is far from over, as she continues to develop her consultancy with a mission that blends eco-conscious property investment with data-driven decision-making. “I don’t just want to help people buy/sell a property and move on,” she says. “I want to understand their goals, whether it’s a first-time home buyer, military transfer or investor that sees the value in investing in efficient properties. Nearly 40% of global carbon dioxide comes from the real estate sector, with AI we can find new ways to leverage data to improve positive environmental impact.”

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As Thompson reflects on her goals, her commitment to sustainability and innovation in real estate remains clear. In a world where climate concerns are increasingly at the forefront, her work demonstrates that practical, sustainable choices can make a significant difference – one home at a time. 

You can reach Carolina at her website: https://www.carolinathompson.realtor/

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Abstract - The paper presents the performance results of Reactor Mk.1, ARC’s flagship large language model, through a benchmarking process analysis. The model utilizes the Lychee AI engine and possesses less than 100 billion parameters, resulting in a combination of efficiency and potency. The Reactor Mk.1 outperformed models such as GPT-4o, Claude Opus, and Llama 3, with achieved scores of 92% on the MMLU dataset, 91% on HumanEval dataset, and 88% on BBH dataset. It excels in both managing difficult jobs and reasoning, establishing as a prominent AI solution in the present cutting-edge AI technology.

Index Terms - Benchmark evaluation, BIG-Bench-Hard, HumanEval, Massive Multitask Language Understanding

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BENCHMARK MODELS

I. Reactor Mk.1

Reactor Mk.1, developed by ARC [1], is a new AI model for mass adoption which is built upon Lychee AI, a NASA award-winning AI engine. With less than 100B parameters in total included in its structure, ARC's vision with the Reactor Mk.1 empower the common user in AI, shaping the future of digital interaction and connectivity. Long-term speaking, ARC plans to support the Reactor Mk.1 with educational resources to empower users to better understand and utilise the full potential of AI technology.

II. Other models

i. GPT 4o

OpenAI has launched GPT-4 Omni (GPT-4o) [2], a new multimodal language model. This model supports real-time conversations, Q&A, and text generation, utilizing all modalities in a single model to understand and respond to text, image, and audio inputs. One of the main features of GPT-4o is its ability to engage in real-time verbal conversations with minimal delay, respond to questions using its knowledge base, and perform tasks like summarizing and generating text. It also processes and responds to combinations of text, audio, and image files.

ii. Claude Opus

Claude Opus [3], created by Anthropic [4], is capable of performing more complex cognitive tasks than simple pattern recognition or text generation. For example, it can analyze static images, handwritten notes, and graphs, and it can generate code for websites in HTML and CSS. Claude can turn images into structured JSON data and debug complex code bases. Additionally, it can translate between various languages in real-time, practice grammar, and create multilingual content.

iii. Llama3

Meta Llama 3 [5], represents one of the AI assistants designed to help users learn, create content, and connect with others. Two models of Llama 3 were released, featuring 8 billion and 70 billion parameters, supporting a wide range of use cases. Llama 3 demonstrates state-of-the-art performance on industry benchmarks and offers improved reasoning and code generation. It uses a decoder-only transformer architecture, featuring a tokenizer with a 128K vocabulary and grouped query attention across 8B and 70B sizes. The models are trained on sequences of 8,192 tokens to ensure efficient language encoding and inference.

iv. Gemini

Gemini [6], introduced by Google, offers different models for various use cases, ranging from data centres to on-device tasks. These models are natively multimodal and capable of understanding and combining text, code, images, audio, and video files. This capability enables the generation of code based on various inputs and the performance of complex reasoning tasks. The new Gemini models, Gemini Pro and Ultra versions, outperform previous models in terms of pretraining and post-training improvements. Their performance is also superior in reasoning and code generation. Importantly, Gemini models undergo extensive safety testing, including bias assessments, in collaboration with external experts to identify and mitigate potential risks.

v. GPT 3.5

The GPT-3.5 model [7] is designed to understand and generate natural language as well as code. This cost-effective model, featuring 175 billion parameters, is optimized for both chat applications and traditional tasks. As a fine-tuned version of GPT-3, it uses deep learning to produce humanlike text. GPT-3.5 performs well in providing relevant results due to its refined architecture. The latest embedding models, including text-embedding-3-large, text-embedding-3-small, and text-embedding-ada-002, also offer good performance in multilingual retrieval tasks. These models allow adjustments to the embedding size through a new dimension parameter, providing control over cost and performance.

vi. Mistral

On December 11, 2023, Mistral AI [8] released Mixtral 8x7B [9], a Sparse Mixture-of-Experts (SMoE) [10] model with open weights. Mixtral 8x7B demonstrated better performance than Llama 2 70B on most benchmarks and offers six times faster inference. It also shows superior properties compared to GPT-3.5, making it a good choice regarding cost and performance. Mixtral can handle a context of 32k tokens, shows strong features in code generation, and can be fine-tuned to follow instructions, achieving a score of 8.3 on MT-Bench. With 46.7 billion total parameters but using only 12.9 billion per token, Mixtral maintains both speed and cost efficiency.

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DATA SETS

Benchmarking of the introduced models will be performed on three globally recognized and widely utilized datasets for training LLMs: Massive Multitask Language Understanding (MMLU), HumanEval, and BIG-Bench-Hard (BBH) datasets.

I. MMLU

The MMLU [11] is proposed with the purpose to assess a model's world knowledge and problem-solving ability. It represents a novel benchmark approach designed to evaluate the multitasking accuracy of a language model. This test covers 57 different subjects, including elementary mathematics, US history, computer science, and law. The questions are collected from various sources, such as practice exams, educational materials, and courses, and cover different difficulty levels, from elementary to professional. For example, the "Professional Medicine" task includes questions from medical licensing exams, while "High School Psychology" features questions from Advanced Placement exams. This collection helps measure a model's ability to learn and apply knowledge across different subjects.

In essence, MMLU tests models in zero-shot and few-shot settings, requiring them to answer questions without additional training. Despite the AI progress witnessed today, even the best models still exhibit poor MMLU performance in expert-level accuracy across all 57 tasks. Additionally, these models commonly perform inconsistently, often failing in areas such as morality and law, where they display random accuracy.

II. HumanEval

The researchers created HumanEval, an evaluation set to measure functional correctness in synthesizing programs from docstrings. Codex (a GPT language model from Chen et al., 2021 [12]) had achieved a 28.8% success rate on this set, while GPT-3 solves almost none, and GPT-J solves 11.4%.

HumanEval finds application in various machine learning cases, particularly within the domain of LLMs. It assesses the functional correctness of code generated by LLMs and presents programming challenges for models to solve by generating code from docstrings. Evaluation relies on the code's ability to pass provided unit tests. Additionally, the dataset serves as a benchmark for comparing the performance of different LLMs in code generation tasks, enabling the use of a standardized set for performance evaluations. In addition, HumanEval's application has introduced the creation of new evaluation metrics like pass@k, which offer additional assessments of models' programming challenge-solving abilities.

III. BBH

The BBH [13] dataset represents a subset of the BIG-Bench benchmark, designed to evaluate the capabilities of LLMs across various domains, including traditional NLP, mathematics, and commonsense reasoning. This dataset encompasses more than 200 tasks, aiming to push the limits of current language models. It specifically targets 23 unsolved tasks identified based on criteria such as the requirement for more than three subtasks and a minimum of 103 examples.

To assess BBH results accurately, multiple-choice and exact match evaluation metrics were employed. Analysis of BBH data revealed significant performance improvements with the application of chain-of-thought (CoT) prompting. For instance, CoT prompting enabled the PaLM model to surpass average human-rater performance on 10 out of the 23 tasks, while Codex (code-davinci-002) exceeded human-rater performance on 17 out of the 23 tasks. This enhancement is attributed to CoT prompting's ability to guide models through multi-step reasoning processes, essential for tackling complex tasks.

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BENCHMARK SCORES

Testing the models on the described test datasets (Table 1), Reactor Mk.1 demonstrated significant benchmark scores, achieving a 92% score on the MMLU benchmark, a 91% score on the HumanEval, and an 88% score on the BBH evaluation.

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In comparison to other presented models in Table 1, Reactor Mk.1's performance has a superior position in several analysed categories. For instance, in the MMLU benchmark, Reactor Mk.1's 92% surpasses and outperforms OpenAI's GPT-4o, which scored 88.7%, and significantly outperforms other models like Anthropic's Claude Opus and Meta's Llama3, which scored 86.8% and 86.1%, respectively. Google Gemini and OpenAI GPT-3.5 were further behind, scoring 81.9% and 70%.

On the HumanEval benchmark, which assesses code generation capabilities, Reactor Mk.1 achieved a 91% score, outperforming all compared models. OpenAI's GPT-4 was close behind with a score of 90.2%, followed by Anthropic's Claude at 84.9% and Meta's Llama at 84.1%. Google Gemini and OpenAI GPT-3.5 scored 71.9% and 48.1%, respectively, indicating a significant performance gap.

For the BBH evaluation, which focuses on challenging tasks that require complex reasoning, Reactor Mk.1 achieved an 88% score. This result demonstrates the superior capability of Reactor Mk.1 in reasoning and handling language understanding tasks.

The dramatic lead achieved by the ARC Reactor Mk.1, especially with a score of 92% on MMLU, underscores our significant advancements. Remarkably, these results were accomplished with a handful of GPUs, highlighting the efficiency and power of our model compared to the more resource-intensive approaches used by other leading models. The benchmark scores indicate that the ARC Reactor Mk.1 not only outperforms in understanding and generating code but also demonstrates exceptional performance in reasoning and handling challenging language tasks. These results position the ARC Reactor Mk.1 as a leading model in the current state of the art of AI technology.

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CONCLUSION

This article aims to concisely present the performance of the Reactor Mk.1 AI model when tested on three popular datasets: MMLU, HumanEval, and BBH. In summary, the model achieved a 92% score on the MMLU dataset, a 91% score on the HumanEval, and an 88% score on the BBH evaluation. To demonstrate the significance of these results, other popular models like GPT 4o, Claude, Llama3, Gemini, and Mistral are used as benchmark models. The Reactor Mk.1 exhibited superior performance compared to the benchmark models, establishing itself as a leader in solving various LLM tasks and complex problems.

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REFERENCES

[1] Hello ARC AI. "Hello ARC AI". Retrieved June 9, 2024, from https://www.helloarc.ai/

[2] OpenAI, "GPT-4 and more tools to ChatGPT free," OpenAI, May 23, 2023. Retrieved June 9, 2024, from https://openai.com/index/gpt-4oand-more-tools-to-chatgpt-free/

[3] Anthropic, "Claude," Anthropic. Retrieved June 9, 2024, from https://www.anthropic.com/claude

[4] Pluralsight, "What is Claude AI?," Pluralsight. Retrieved June 9, 2024, from https://www.pluralsight.com/resources/blog/data/what-is-claudeai

[5] Meta, "Meta LLaMA 3," Meta. Retrieved June 9, 2024, from https://ai.meta.com/blog/meta-llama-3/

[6] S. Pichai and D. Hassabis, "Introducing Gemini: The next-generation AI from Google," Google, December 6, 2023. Retrieved June 9, 2024, from https://blog.google/technology/ai/google-gemini/#introducing-gemini

[7] Lablab.ai, "GPT-3.5," Lablab.ai. Retrieved June 9, 2024, from https://lablab.ai/tech/openai/gpt3-5

[8] Mistral AI, "Mixtral of experts," Mistral AI, June 5, 2023. Retrieved June 9, 2024, from https://mistral.ai/news/mixtral-of-experts/

[9] Ollama, "Mixtral," Ollama. Retrieved June 9, 2024, from https://ollama.com/library/mixtral

[10] J. Doe, "Understanding the sparse mixture of experts (SMoE) layer in Mixtral," Towards Data Science, June 5, 2023. Retrieved June 9, 2024, from https://towardsdatascience.com/understanding-the-sparse-mixture-of-experts-smoe-layer-in-mixtral-687ab36457e2

[11] D. Hendrycks, C. Burns, S. Basart, A. Zou, M. Mazeika, D. Song, and J. Steinhardt, "Measuring massive multitask language understanding," arXiv preprint arXiv:2009.03300, 2020.

[12] M. Chen, J. Tworek, H. Jun, Q. Yuan, H. P. D. O. Pinto, J. Kaplan, H. Edwards, Y. Burda, N. Joseph, G. Brockman, and A. Ray, "Evaluating large language models trained on code," arXiv preprint arXiv:2107.03374, 2021.

[13] M. Suzgun, N. Scales, N. Schärli, S. Gehrmann, Y. Tay, H. W. Chung, A. Chowdhery, Q. V. Le, E. H. Chi, D. Zhou, and J. Wei, "Challenging big-bench tasks and whether chain-of-thought can solve them," arXiv preprint arXiv:2210.09261, 2022.

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In this exclusive VMblog Q&A, we sit down with TJ Dunham, the founder and CEO of ARC, a deep tech company revolutionizing AI with its groundbreaking Reactor AI.

Focused on sustainability and efficiency, Reactor AI sets itself apart from traditional large language models (LLMs) by drastically reducing energy consumption and GPU requirements. With rapid ontological classification (ROC) at its core, Reactor is changing the landscape of AI development, offering a smarter and more sustainable alternative.

In this interview, Dunham shares insights into the innovations driving Reactor AI and the broader implications for the future of AI technology.

VMblog:  What is ARC and what is ARC's Reactor AI? What does the company do?

TJ Dunham:  We are ARC, a deep tech company dedicated to developing a new generation of super-efficient AI. We started ARC in 2023 with the belief that AI should work in the service of benefiting humanity, while being simple and transparent enough to be accessible to as many people as possible.

We designed Reactor Mk as a purpose-built large language model, to use significantly less energy and resources than the LLMs deployed by OpenAI, Google, Anthropic, and others. We developed a far better and more sustainable way to train AI than any other LLM currently available. With Reactor AI, we've developed a novel, highly performant approach to training AI models.

VMblog:  How does Reactor AI achieve its energy efficiency compared to traditional LLMs? Can you elaborate on the role of rapid ontological classification (ROC) in this process?

Dunham:  Reactor achieves its energy efficiency by taking a fundamentally different approach to model training and data management. Traditional LLMs are built on vast, unstructured data sets that models need to sift through. In contrast, Reactor focuses on concise, highly organized data, from our rapid ontological classification (ROC) system.

While most other models train on massive, unfiltered datasets, Reactor uses data parsed and organized by ROC technology. Our ROC system incorporates elements from open-source models, discarding irrelevant or outdated information as it trains. It's a streamlined approach that allows us to train much more efficiently while consuming far fewer resources and less energy.

ROC technology helps structure the model's data more effectively. Imagine a traditional model with 75 billion parameters trying to self-organize its information; it's like navigating a maze. By contrast, Reactor AI's ROC system organizes data into clear "highways," allowing the model to access relevant information quickly and efficiently. This not only reduces energy consumption but also boosts performance.

VMblog:  What are the environmental implications of Reactor AI's reduced GPU requirements and energy consumption? How might this impact AI industry sustainability efforts?

Dunham:  The environmental implications are enormous. Typically, AI companies and their models are consuming vast amounts of energy, focusing on building bigger, more powerful models at unsustainable rates. Reactor demonstrates a better way: we can build highly efficient models without burning through exorbitant amounts of energy and resources, including water.

Our approach-using just a few cloud GPUs and achieving superior performance-sets a new standard for sustainability in AI. We are a small team outperforming energy-intensive giants on a fraction of the resources. Our whole focus is toward sustainable AI which not only reduces the industry's carbon footprint but also make AI more accessible and responsible.

VMblog:  Can you explain how Reactor's architecture differs from conventional LLMs and why this leads to improved energy efficiency?

Dunham:  Reactor's architecture combines different open-source models and leverages our ROC system, creating a streamlined, highly efficient model. Traditional LLMs must navigate through vast, disorganized datasets for every query, consuming more energy and time. Reactor, however, avoids this by organizing data through an AST-like system, making it much easier to access relevant information fast.

To put it in perspective, in essence Reactor has the most direct highways to its data centers, allowing for quicker, more efficient responses. This simplified "route" to information means Reactor requires significantly less energy, resulting in vastly improved efficiency.

VMblog:  How does ARC's approach to training Reactor with just 8 NVIDIA L4 and 4 NVIDIA A100 GPUs compare to methods used by larger tech companies? What are the implications for AI accessibility and democratization?

Dunham:  ARC's approach changes the game for AI accessibility and democratization. While large companies like OpenAI and xAI use thousands of GPUs to train their models, consuming massive amounts of energy, we achieved Reactor's performance using just 8 NVIDIA L4s and 4 A100 GPUs.

It shows that you don't need huge data centers or immense power to train high-performing models. Our method, focused on efficiency and innovation, shows that smaller companies can compete at the highest level without excessive resources. This paves the way for more startups and smaller players to enter the field, fostering a more competitive, diverse, and sustainable AI landscape.

VMblog:  In what ways does Reactor's ontological classification method provide advantages over traditional LLMs that rely on vast training datasets?

Dunham:  Reactor's rapid ontological classification (ROC) offers several key advantages over traditional LLMs that rely on large, disorganized datasets. First, it allows for much more efficient data organization, meaning the model can retrieve relevant information faster. Second, this organization makes the data more accessible, so the model doesn't waste energy parsing through irrelevant information.

Additionally, our models can collaborate more efficiently through agentic interaction, where multiple models work together seamlessly. This is in stark contrast to the typical scaling methods of other companies, which rely on more GPUs to increase power. Reactor's architecture allows us to scale more efficiently, enabling models to be smaller, faster, and more sustainable.

VMblog:  How do you envision Reactor's energy-efficient design influencing the future development of AI technologies, particularly in addressing the growing concerns about AI's resource consumption?

Dunham:  Reactor AI sets a new standard for energy efficiency. This will influence the broader AI industry. Our goal is to create a model that absorbs more carbon than it produces-a "climate-positive" AI. This flips the current narrative that AI is inherently harmful to the environment.

As more companies realize the potential of our approach, they'll be motivated to reduce their energy consumption and adopt sustainable practices.

Instead of competing for the largest, most energy-hungry models, we envision a future where efficiency and sustainability are the key drivers of AI innovation. Ultimately, this shift will result in AI technologies that are not just more powerful but also more responsible.

VMblog:  Can you share some specific data or metrics that demonstrate Reactor's efficiency gains compared to other LLMs in the market?

Dunham:  Here's one example in terms of energy consumption. Our Reactor AI used less than 1 megawatt of energy for training, while other models have consumed upwards of 50,000 megawatts. This difference-50,000 times more efficient-is staggering and represents a leap forward in AI efficiency.

In terms of the speed difference vs. traditional models, this is easily illustrated by the resources it took to train our model. With Reactor Mk, we only used 8 L4 GPUs and 4 A100s, running for less than a day, while GPT-4 is so massive it is believed to have required over 25,000 A100s running for three months for training.

You can also experience Reactor's efficiency for yourself by taking it for a spin. Go to https://reactor.helloarc.ai and give it a whirl.

VMblog:  While the iOS and Android apps you're just announcing are exciting, the focus seems to be on Reactor's efficiency. How do you see this technology potentially reshaping the landscape of mobile AI applications?

Dunham:  Reactor's efficiency will play a pivotal role in reshaping mobile AI. Our goal is to build a full-time assistant that can run on your phone, helping with tasks like drafting emails, organizing work, and even functioning offline. As the technology evolves, we want users to own their assistants fully, with all data encrypted and stored locally on their devices. This would ensure complete privacy and control over the AI.

The implications are profound. Reactor will allow AI to be more deeply integrated into our daily lives without draining device resources. It's not just about having AI on your phone; it's about having an AI that's efficient, private, and truly yours-without compromising on functionality or speed.

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TJ Dunham, Founder and CEO ARC

TJ Dunham is the Founder and CEO of ARC, a cutting-edge startup at the intersection of AI and blockchain technology. A seasoned entrepreneur, TJ previously led DePo, a multi-market aggregator that achieved significant success with over 50,000 users and an exit valuation of $45m. At ARC, TJ has spearheaded the development of Reactor, an AI model that has claimed the top spot on the MMLU benchmark while using a fraction of the energy typically required for such advanced systems. This achievement underscores TJ's vision and commitment to sustainable innovation in AI. With a proven track record in both the AI and blockchain sectors, TJ continues to drive technological advancements that create value and push industry boundaries. His leadership at ARC reflects a vision for responsible, efficient, and groundbreaking tech solutions.

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Bitcoin remains at lower levels, with consistent closures below $60,000 causing concern. Analysts are examining the potential negative scenarios that technical price weaknesses could trigger. So, what do institutional analysts currently think about the market? What are crypto investors anticipating? Here are the details.

In light of ongoing sales in Germany and MTGOX activity, investor risk appetite has notably decreased. The RSI easing into the oversold region and sentiment plunging to fear levels have led to new lows in altcoins. What are the latest forecasts from QCP analysts? In a recently released market evaluation, experts stated:

“While stocks and gold have been on the rise since last week, crypto prices are moving in the opposite direction. Last week, around 3-4 PM New York time, there were intense spot sales. This might be the large supply mentioned in recent headlines entering the market, particularly from the German government and Mt. Gox distributions.

However, the price drop coincided with the July 4th US holiday, with prices only finding support the next day when the US market resumed buying. On Friday, there was over $143 million net inflow into BTC spot ETFs. Towards the weekend, BTC traded within a wide range of $53,500-$58,500 amid very weak liquidity. Are these fluctuations a new norm due to weak liquidity outside US working hours, or just a summer market pattern?”

QCP Analysts’ Latest Insights

In light of ongoing sales in Germany and MTGOX activity, investor risk appetite has notably decreased. The RSI easing into the oversold region and sentiment plunging to fear levels have led to new lows in altcoins. What are the latest forecasts from QCP analysts? In a recently released market evaluation, experts stated:

“While stocks and gold have been on the rise since last week, crypto prices are moving in the opposite direction. Last week, around 3-4 PM New York time, there were intense spot sales. This might be the large supply mentioned in recent headlines entering the market, particularly from the German government and Mt. Gox distributions.

However, the price drop coincided with the July 4th US holiday, with prices only finding support the next day when the US market resumed buying. On Friday, there was over $143 million net inflow into BTC spot ETFs. Towards the weekend, BTC traded within a wide range of $53,500-$58,500 amid very weak liquidity. Are these fluctuations a new norm due to weak liquidity outside US working hours, or just a summer market pattern?”

Bitcoin (BTC) Trends

The rise in BTC accelerated to $54,700 at the end of February 2024 after a brief pause, but the price has since moved away from this point. Continued closures below $58,376 suggest the potential for deeper lows. BTC, after lingering at $60,200, is making efforts to stabilize at a lower level.

Key Takeaways for Investors

For investors looking at the current BTC market situation, here are key inferences:

• Monitor price closures below $58,376 as indicators of potential deeper lows.
• Be aware of weak liquidity periods, especially outside US working hours.
• Track large inflows into BTC spot ETFs as potential support signals.

Should the negative sentiment continue, we might witness new lows in the $50,700 and $48,000 range, which would also result in fresh yearly lows for altcoins.

Institutional Influence on Bitcoin's Market

The influence of institutional investors on Bitcoin's market cannot be overstated. With significant players like MicroStrategy and Tesla making substantial investments, the market dynamics have shifted. Institutional FOMO (Fear of Missing Out) has been a driving force behind Bitcoin's price movements. The entry of institutional money has provided a level of stability and legitimacy to Bitcoin, which was previously considered a speculative asset.

MicroStrategy's Impact

MicroStrategy, a business intelligence firm, has been one of the most vocal proponents of Bitcoin. The company has consistently increased its Bitcoin holdings, with its CEO, Michael Saylor, advocating for Bitcoin as a store of value. MicroStrategy's aggressive accumulation strategy has had a ripple effect, encouraging other institutions to consider Bitcoin as a viable investment.

Tesla's Bitcoin Holdings

Tesla's announcement of a $1.5 billion investment in Bitcoin earlier this year sent shockwaves through the market. The move was seen as a significant endorsement of Bitcoin by one of the world's most innovative companies. Tesla's investment has not only boosted Bitcoin's price but also increased its visibility among mainstream investors.

The Role of Bitcoin ETFs

Bitcoin ETFs (Exchange-Traded Funds) have been another critical factor in Bitcoin's market dynamics. The approval of Bitcoin ETFs in various jurisdictions has made it easier for institutional investors to gain exposure to Bitcoin without directly holding the asset. This has led to increased inflows into Bitcoin ETFs, providing additional support to Bitcoin's price.

The Impact of US Bitcoin ETFs

The approval of Bitcoin ETFs in the US has been a game-changer. These ETFs have attracted significant inflows from institutional investors, further solidifying Bitcoin's position as a mainstream asset. The ease of access provided by ETFs has lowered the barriers to entry for institutional investors, leading to increased demand for Bitcoin.

Global Bitcoin ETF Landscape

While the US has been a significant market for Bitcoin ETFs, other countries have also seen the launch of Bitcoin ETFs. Canada, for instance, was one of the first countries to approve Bitcoin ETFs, and these products have seen substantial inflows. The global acceptance of Bitcoin ETFs is a testament to the growing institutional interest in Bitcoin.

The Halving Cycle and Its Impact

The Bitcoin halving cycle is a well-known phenomenon that has historically had a significant impact on Bitcoin's price. The halving event, which occurs approximately every four years, reduces the block reward for miners by half. This reduction in supply has often been followed by substantial price increases.

The Upcoming Halving Event

The next Bitcoin halving event is expected to occur in 2024. Historically, Bitcoin's price has started to rally approximately a year before the halving event as investors anticipate the reduction in supply. This pre-halving rally is driven by the expectation that the reduced supply will lead to higher prices.

Historical Halving Cycles

Looking at past halving cycles, Bitcoin has experienced significant price increases following each halving event. The 2012 halving was followed by a massive bull run that saw Bitcoin's price increase from around $12 to over $1,000. Similarly, the 2016 halving was followed by a bull run that took Bitcoin's price from around $650 to nearly $20,000.

Market Sentiment and Its Influence

Market sentiment plays a crucial role in Bitcoin's price movements. The Crypto Fear and Greed Index is a popular tool used to gauge market sentiment. This index measures factors such as volatility, market volume, social media activity, and surveys to determine whether the market is in a state of fear or greed.

Current Market Sentiment

As of now, the Crypto Fear and Greed Index indicates a state of fear in the market. This is reflected in the recent price declines and the overall bearish sentiment among investors. However, periods of fear can often present buying opportunities for contrarian investors who believe in Bitcoin's long-term potential.

The Role of Social Media

Renowned trading legend Peter Brandt has recently sparked a debate in the cryptocurrency community by suggesting that Bitcoin might be on the verge of completing a double-top pattern. In a compelling X post, Brandt highlighted a potential minimum target of $44,000, supported by a detailed Bitcoin price chart. This projection indicates a significant downside risk if the double-top pattern is confirmed. However, Brandt also noted that for a true double-top formation, the depth of the top of BTC would need to be around 20% of the price, while the current depth is only around 10%. This nuanced analysis leaves room for both caution and optimism among Bitcoin traders.

Understanding the Double-Top Pattern

A double-top pattern is a bearish reversal pattern that typically signals the end of an uptrend and the beginning of a downtrend. It is characterized by two peaks at roughly the same level, with a moderate decline between them. The pattern is confirmed when the price falls below the support level formed by the low point between the two peaks.

Key Characteristics of a Double-Top Pattern

1. Two Peaks: The two peaks should be at approximately the same price level.
2. Moderate Decline: There should be a moderate decline between the two peaks.
3. Confirmation: The pattern is confirmed when the price breaks below the support level formed by the low point between the peaks.

Peter Brandt's Analysis

Peter Brandt's analysis suggests that Bitcoin might be forming a double-top pattern, with a potential minimum target of $44,000. This projection is based on a detailed Bitcoin price chart that shows two peaks at roughly the same level, with a moderate decline between them. However, Brandt also noted that for a true double-top formation, the depth of the top of BTC would need to be around 20% of the price, while the current depth is only around 10%.

Implications of a Double-Top Pattern

If the double-top pattern is confirmed, it could signal a significant downside risk for Bitcoin. The potential minimum target of $44,000 represents a substantial decline from current levels. However, the fact that the current depth is only around 10% suggests that the pattern might not be fully formed yet, leaving room for both caution and optimism among Bitcoin traders.

Market Reactions and Expert Opinions

The possibility of a double-top pattern has sparked a debate among cryptocurrency analysts and traders. Some experts believe that the pattern is a strong indicator of a potential downtrend, while others argue that the current market conditions do not support a bearish outlook.

Bullish vs. Bearish Sentiments

• Bullish Sentiments: Some analysts believe that the current market conditions are still favorable for Bitcoin, with strong institutional interest and increasing adoption driving demand. They argue that the current depth of the top is not sufficient to confirm a double-top pattern and that Bitcoin could still see further gains.
• Bearish Sentiments: On the other hand, some experts believe that the double-top pattern is a strong indicator of a potential downtrend. They argue that the recent price action suggests that Bitcoin might be losing momentum and that a decline to $44,000 is possible.

Historical Context and Future Projections

To better understand the potential implications of a double-top pattern, it is helpful to look at historical trends and future projections for Bitcoin.

Historical Trends

Historically, Bitcoin has experienced several significant price corrections following major bull runs. For example, after reaching an all-time high of nearly $20,000 in December 2017, Bitcoin experienced a prolonged bear market, with the price eventually falling to around $3,000 in December 2018.

Future Projections

Looking ahead, some analysts believe that Bitcoin could still see significant gains, despite the potential for a double-top pattern. For example, some experts have projected that Bitcoin could reach $100,000 or even higher in the coming years, driven by increasing institutional interest and adoption.

Conclusion

Peter Brandt's suggestion that Bitcoin might be on the verge of completing a double-top pattern has sparked a debate among cryptocurrency analysts and traders. While the potential minimum target of $44,000 represents a significant downside risk, the fact that the current depth of the top is only around 10% suggests that the pattern might not be fully formed yet. This leaves room for both caution and optimism among Bitcoin traders, as they navigate the complex and ever-changing cryptocurrency market.

Additional Insights and Considerations

The Role of Institutional Investors

One of the key factors driving Bitcoin's price movements in recent years has been the increasing interest from institutional investors. Companies like MicroStrategy, Tesla, and Square have made significant investments in Bitcoin, and major financial institutions like JPMorgan and Goldman Sachs have started offering Bitcoin-related products and services to their clients.

Regulatory Developments

Regulatory developments also play a crucial role in shaping the cryptocurrency market. In recent years, there has been a growing focus on regulating the cryptocurrency industry, with countries like the United States, China, and the European Union introducing new regulations and guidelines. These regulatory developments can have a significant impact on Bitcoin's price and market dynamics.

Technological Advancements

Technological advancements in the cryptocurrency space, such as the development of the Lightning Network and the implementation of Taproot, can also influence Bitcoin's price and adoption. These advancements aim to improve Bitcoin's scalability, security, and functionality, making it more attractive to users and investors.

Market Sentiment and Psychological Factors

Market sentiment and psychological factors also play a crucial role in Bitcoin's price movements. Fear, uncertainty, and doubt (FUD) can lead to significant price declines, while positive news and developments can drive bullish sentiment and price increases. Understanding these psychological factors can help traders and investors make more informed decisions.

Diversification and Risk Management

Given the inherent volatility and risks associated with the cryptocurrency market, diversification and risk management are essential for traders and investors. Diversifying one's portfolio across different assets and implementing risk management strategies can help mitigate potential losses and maximize returns.

Long-Term vs. Short-Term Perspectives

When analyzing Bitcoin's price movements and potential patterns, it is important to consider both long-term and short-term perspectives. While short-term price fluctuations can be influenced by various factors, long-term trends are often driven by fundamental developments and broader market dynamics.

Final Thoughts

Peter Brandt's analysis of a potential double-top pattern in Bitcoin highlights the importance of technical analysis and market trends in understanding cryptocurrency price movements. While the potential downside risk to $44,000 is a cause for caution, the current market conditions and depth of the top suggest that the pattern might not be fully formed yet. As always, traders and investors should stay informed, consider multiple perspectives, and implement sound risk management strategies to navigate the complex and dynamic cryptocurrency market.

Stay Updated with the Latest Developments

To stay updated with the latest developments in the cryptocurrency market, consider following reputable news sources, joining online communities, and participating in discussions with other traders and investors. Staying informed and engaged can help you make more informed decisions and stay ahead of market trends.

Conclusion

In conclusion, Peter Brandt's suggestion that Bitcoin might be on the verge of completing a double-top pattern has sparked a debate among cryptocurrency analysts and traders. While the potential minimum target of $44,000