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Cryptocurrency Bitcoin The Secret Auction That Set Off the Race for AI Supremacy


Cryptocurrency Bitcoin The Secret Auction That Set Off the Race for AI Supremacy

By the time he stepped onto a bus in downtown Toronto for the first leg of a trip to Lake Tahoe in December 2012, Geoff Hinton hadn’t taken a seat for seven years. “I last sat down in 2005,” he often said, “and it was a mistake.”He first injured his back as a teenager, while…

Cryptocurrency  Bitcoin The Secret Auction That Set Off the Race for AI Supremacy

Cryptocurrency Bitcoin

By the time he stepped onto a bus in downtown Toronto for the first leg of a trip to Lake Tahoe in December 2012, Geoff Hinton hadn’t taken a seat for seven years. “I last sat down in 2005,” he often said, “and it was a mistake.”

He first injured his back as a teenager, while lifting a space heater for his mother. As he reached his late fifties, he couldn’t sit down without risking a slipped disk, and if it slipped the pain could put him in bed for weeks. So he stopped sitting down. He used a standing desk inside his office at the University of Toronto. When eating meals, he put a small foam pad on the floor and knelt at the table, poised like a monk at the altar.

He lay down when riding in cars, stretching across the back seat. When traveling longer distances, he took the train or went by ship. He couldn’t fly, at least not with the commercial airlines, because they made him sit during takeoff and landing. “It got to the point where I thought I might be crippled—that I wouldn’t be able to make it through the day—so I took it seriously,” he says. “If you let it completely control your life,” he adds dryly, “it doesn’t give you any problems.”

That fall—before lying down in the back of the bus from Toronto to New York, taking the train 2,700 miles to Truckee, California, at the crest of the Sierra Nevadas, and then stretching across the back seat of a taxi for the hour-long drive to South Lake Tahoe—Hinton had created a new company. It included only two other people, both young graduate students in his lab at the university. It made no products. It had no plans to make a product. And its website offered nothing but a name, DNN-research, which was even less inviting than the sparse page. The 64-year-​old Hinton—who seemed so at home in academia, with his tousled gray hair, wool sweaters, and two-steps-ahead‑of‑you sense of humor—wasn’t even sure he wanted to start a company until his two students talked him into it. But as he arrived in South Lake Tahoe, some of the biggest tech companies in the world were gearing up for a contest to acquire his newborn startup.

He was headed for Harrah’s and Harveys, the two huge casinos at the foot of the mountains near the shore of the lake. Rising up over the Nevada pines, these twin slabs of glass, steel, and stone also serve as convention centers, offering hundreds of hotel rooms, dozens of meeting spaces, and a wide variety of (second-​rate) restaurants. That December, they hosted an annual gathering of computer scientists then called NIPS. Short for Neural Information Processing Systems—a name that looked deep into the future of computing—NIPS was a conference dedicated to artificial intelligence. A London-​born academic who had explored the frontiers of AI at universities in Britain, the United States, and Canada since the early 1970s, Hinton made the trip to NIPS nearly every year. But this time was different. To his mind, this year’s conference seemed like the ideal venue for a high-stakes auction.

Two months earlier, Hinton and his students had changed the way machines saw the world. They built what was called a neural network, a mathematical system modeled on the web of neurons in the brain, and it could identify common objects—like flowers, dogs, and cars—with an accuracy that had previously seemed impossible. As Hinton and his students showed, a neural network could learn this very human skill by analyzing vast amounts of data. He called this “deep learning,” and its potential was enormous. It promised to transform not just computer vision but everything from talking digital assistants to driverless cars to drug discovery.

The idea of a neural network dated back to the 1950s, but the early pioneers had never gotten it working as well as they’d hoped. By the new millennium, most researchers had given up on the idea, convinced it was a technological dead end and bewildered by the 50-​year-​old conceit that these mathematical systems somehow mimicked the human brain. When submitting research papers to academic journals, those who still explored the technology would often disguise it as something else, replacing the words “neural network” with language less likely to offend their fellow scientists.

Hinton remained one of the few who believed it would one day fulfill its promise, delivering machines that could not only recognize objects but identify spoken words, understand natural language, carry on a conversation, and maybe even solve problems humans couldn’t solve on their own, providing new and more incisive ways of exploring the mysteries of biology, medicine, geology, and other sciences. It was an eccentric stance even inside his own university, which spent years denying his standing request to hire another professor who could work alongside him in this long and winding struggle to build machines that learned on their own. “One crazy person working on this was enough,” he imagined their thinking went. But with a nine-​page paper that Hinton and his students unveiled in the fall of 2012, detailing their breakthrough, they announced to the world that neural networks were indeed as powerful as Hinton had long claimed they would be.

Days after the paper was published, Hinton received an email from a fellow AI researcher named Kai Yu, who worked for Baidu, the Chinese tech giant. On the surface, Hinton and Yu had little in common. Born in postwar Britain to an upper-crust family of scientists whose influence was matched only by their eccentricity, Hinton had studied at Cambridge, earned a PhD in artificial intelligence from the University of Edinburgh, and spent most of the next four decades as a professor of computer science. Yu was 30 years younger than Hinton and grew up in Communist China, the son of an automobile engineer, and studied in Nanjing and then Munich before moving to Silicon Valley for a job in a corporate research lab. The two were separated by class, age, culture, language, and geography, but they shared a faith in neural networks. They had originally met in Canada at an academic workshop, part of a grassroots effort to revive this nearly dormant area of research across the scientific community and rebrand the idea as “deep learning.” Yu, a small, bespectacled, round-faced man, was among those who helped spread the gospel. When that nine-​page paper emerged from the University of Toronto, Yu told the Baidu brain trust they should recruit Hinton as quickly as possible. With his email, Yu introduced Hinton to a Baidu vice president, who promptly offered $12 million to hire Hinton and his students for just a few years of work.

For a moment, it seemed like Hinton and his suitors in Beijing were on the verge of sealing an agreement. But Hinton paused. In recent months, he’d cultivated relationships inside several other companies, both small and large, including two of Baidu’s big American rivals, and they, too, were calling his office in Toronto, asking what it would take to hire him and his students.

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