Entrepreneurs are in a frenzied race to develop the AI equivalent of the iPhone.

The race to develop the iPhone equivalent in the realm of artificial intelligence is intensifying, and Rabbit, a technology startup, has revealed its contender at the Consumer Electronics Show. The Rabbit r1, a small, orange walkie-talkie style device, claims to employ “AI agents” to perform tasks for users. Priced at $199, it competes with similar AI-first devices like the $699 Humane Ai Pin and the $299 Meta and Rayban smart-glasses. Investors such as Sam Altman from OpenAI, who is backing Humane, are betting on advancements in AI, particularly large language models (LLMs), to revolutionize personalized computing.

Rabbit’s r1 is built on a novel AI system called a “large action model,” distinct from traditional large language models like ChatGPT. According to Rabbit’s founder Jesse Lyu, large language models struggle to execute real-world actions, while Rabbit’s large action model is trained on graphical user interfaces, allowing it to navigate human-designed interfaces and carry out tasks effectively.

To enable the r1 to book vacations, order pizza, and call an Uber, users must sign into their accounts via Rabbit’s web portal. Rabbit’s AI agents, termed “rabbits,” operate on external servers and request permission during task execution, especially for sensitive actions like payments. Although Rabbit claims user security and privacy, concerns about the necessity of new AI hardware have been raised. Francisco Jeronimo from IDC argues that consumers don’t need separate devices, emphasizing the significance of intelligent phones.

While OpenAI’s Altman envisions embedding more agency into software, eliminating the need for new AI-first devices, the trend of empowering AIs to take real-world actions raises safety concerns. The potential risks of powerful agential AIs pursuing dangerous goals have been highlighted in a paper by the Center for AI Safety. Altman acknowledges the need for cautious progress in giving AI tools the ability to act in the real world, emphasizing the importance of thoughtful consideration by society.

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