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#431543 China Is an Entrepreneurial Hotbed That ...

Last week, Eric Schmidt, chairman of Alphabet, predicted that China will rapidly overtake the US in artificial intelligence…in as little as five years.
Last month, China announced plans to open a $10 billion quantum computing research center in 2020.
Bottom line, China is aggressively investing in exponential technologies, pursuing a bold goal of becoming the global AI superpower by 2030.
Based on what I’ve observed from China’s entrepreneurial scene, I believe they have a real shot of hitting that goal.
As I described in a previous tech blog, I recently traveled to China with a group of my Abundance 360 members, where I was hosted by my friend Kai-Fu Lee, the founder, chairman, and CEO of Sinovation Ventures.
On one of our first nights, Kai-Fu invited us to a special dinner at Da Dong Roast, which specializes in Peking duck, where we shared an 18-course meal.
The meal was amazing, and Kai-Fu’s dinner conversation provided us priceless insights on Chinese entrepreneurs.
Three topics opened my eyes. Here’s the wisdom I’d like to share with you.
1. The Entrepreneurial Culture in China
Chinese entrepreneurship has exploded onto the scene and changed significantly over the past 10 years.
In my opinion, one significant way that Chinese entrepreneurs vary from their American counterparts is in work ethic. The mantra I found in the startups I visited in Beijing and Shanghai was “9-9-6”—meaning the employees only needed to work from 9 am to 9 pm, 6 days a week.
Another concept Kai-Fu shared over dinner was the almost ‘dictatorial’ leadership of the founder/CEO. In China, it’s not uncommon for the Founder/CEO to own the majority of the company, or at least 30–40 percent. It’s also the case that what the CEO says is gospel. Period, no debate. There is no minority or dissenting opinion. When the CEO says “march,” the company asks, “which way?”
When Kai-Fu started Sinovation (his $1 billion+ venture fund), there were few active angel investors. Today, China has a rich ecosystem of angel, venture capital, and government-funded innovation parks.
As venture capital in China has evolved, so too has the mindset of the entrepreneur.
Kai -Fu recalled an early investment he made in which, after an unfortunate streak, the entrepreneur came to him, almost in tears, apologizing for losing his money and promising he would earn it back for him in another way. Kai-Fu comforted the entrepreneur and said there was no such need.
Only a few years later, the situation was vastly different. An entrepreneur who was going through a similar unfortunate streak came to Kai Fu and told him he only had $2 million left of his initial $12 million investment. He informed him he saw no value in returning the money and instead was going to take the last $2 million and use it as a final push to see if the company could succeed. He then promised Kai-Fu if he failed, he would remember what Kai-Fu did for him and, as such, possibly give Sinovation an opportunity to invest in him with his next company.
2. Chinese Companies Are No Longer Just ‘Copycats’
During dinner, Kai-Fu lamented that 10 years ago, it would be fair to call Chinese companies copycats of American companies. Five years ago, the claim would be controversial. Today, however, Kai-Fu is clear that claim is entirely false.
While smart Chinese startups will still look at what American companies are doing and build on trends, today it’s becoming a wise business practice for American tech giants to analyze Chinese companies. If you look at many new features of Facebook’s Messenger, it seems to very closely mirror TenCent’s WeChat.
Interestingly, tight government controls in China have actually spurred innovation. Take TV, for example, a highly regulated industry. Because of this regulation, most entertainment in China is consumed on the internet or by phone. Game shows, reality shows, and more will be entirely centered online.
Kai-Fu told us about one of his investments in a company that helps create Chinese singing sensations. They take girls in from a young age, school them, and regardless of talent, help build their presence and brand as singers. Once ready, these singers are pushed across all the available platforms, and superstars are born. The company recognizes its role in this superstar status, though, which is why it takes a 50 percent cut of all earnings.
This company is just one example of how Chinese entrepreneurs take advantage of China’s unique position, market, and culture.
3. China’s Artificial Intelligence Play
Kai-Fu wrapped up his talk with a brief introduction into the expansive AI industry in China. I previously discussed Face++, a Sinovation investment, which is creating radically efficient facial recognition technology. Face++ is light years ahead of anyone else globally at recognition in live videos. However, Face++ is just one of the incredible advances in AI coming out of China.
Baidu, one of China’s most valuable tech companies, started out as just a search company. However, they now run one of the country’s leading self-driving car programs.
Baidu’s goal is to create a software suite atop existing hardware that will control all self-driving aspects of a vehicle but also be able to provide additional services such as HD mapping and more.
Another interesting application came from another of Sinovation’s investments, Smart Finance Group (SFG). Given most payments are mobile (through WeChat or Alipay), only ~20 percent of the population in China have a credit history. This makes it very difficult for individuals in China to acquire a loan.
SFG’s mobile application takes in user data (as much as the user allows) and, based on the information provided, uses an AI agent to create a financial profile with the power to offer an instant loan. This loan can be deposited directly into their WeChat or Alipay account and is typically approved in minutes. Unlike American loan companies, they avoid default and long-term debt by only providing a one-month loan with 10% interest. Borrow $200, and you pay back $220 by the following month.
Artificial intelligence is exploding in China, and Kai-Fu believes it will touch every single industry.
The only constant is change, and the rate of change is constantly increasing.
In the next 10 years, we’ll see tremendous changes on the geopolitical front and the global entrepreneurial scene caused by technological empowerment.
China is an entrepreneurial hotbed that cannot be ignored. I’m monitoring it closely. Are you?
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#431414 This Week’s Awesome Stories From ...

QUANTUM COMPUTING IBM Raises the Bar With a 50-Qubit Quantum ComputerWill Knight | MIT Technology Review “50 qubits is a significant landmark in progress toward practical quantum computers. Other systems built so far have had limited capabilities and could perform only calculations that could also be done on a conventional supercomputer. A 50-qubit machine can do things that are extremely difficult to simulate without quantum technology.”
ARTIFICIAL INTELLIGENCE AI Startup Embodied Intelligence Wants Robots to Learn From Humans in Virtual RealityEvan Ackerman | IEEE Spectrum “This is a defining problem for robotics right now: Robots can do anything you want, as long as you tell them exactly what that is, every single time… This week, Abbeel and several of his colleagues from UC Berkeley and OpenAI are announcing a new startup (with US $7 million in seed funding) called Embodied Intelligence, which will ‘enable industrial robot arms to perceive and act like humans instead of just strictly following pre-programmed trajectories.’”
TRANSPORTATION Uber’s Plan to Launch Flying Cars in LA by 2020 Really Could Take OffJack Stewart | Wired“After grabbing an elevator, passengers will tap their phones to pass through a turnstile and access the roof. Presumably they’ve been prescreened, because there’s no airport-style security in evidence. An agent in an orange vest takes a group of four passengers out to the waiting aircraft. There’s a pilot up front, and a small overhead display with the estimated arrival time.”
ROBOTICS This Robot Swarm Finishes Your Grocery Shopping in MinutesJesus Diaz | Fast Company “At an Ocado warehouse in the English town of Andover, a swarm of 1,000 robots races over a grid the size of a soccer field, filling orders and replacing stock. The new system, which went live earlier this year, can fulfill a 50-item order in under five minutes—something that used to take about two hours at human-only facilities. It’s been so successful that Ocado is now building a new warehouse that’s three times larger in Erith, southeast of London.”
BIOTECH Meet the Scientists Building a Library of Designer DrugsAngela Chen | The Verge“One of the most prominent categories of designer drugs are those intended to mimic marijuana, called synthetic cannabinoids. Marijuana, or cannabis, is widely considered one of the safest drugs, but synthetic cannabinoids are some of the most dangerous synthetic drugs.”
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#431171 SceneScan: Real-Time 3D Depth Sensing ...

Nerian Introduces a High-Performance Successor for the Proven SP1 System
Stereo vision, which is the three-dimensional perception of our environment with two sensors likeour eyes, is a well-known technology. As a passive method – there is no need to emit light in thevisible or invisible spectral range – this technology can open up new possibilities for three dimensional perception, even under difficult conditions.
But as often, the devil is in the details: for most applications, the software implementation withstandard PCs, but also with graphics processors, is too slow. Another complicating factor is thatthese hardware platforms are expensive and not energy-efficient. The solution is to instead usespecialized hardware for image processing. A programmable logic device – a so-called FPGA – cangreatly accelerate the image processing.
As a technology leader, Nerian Vision Technologies has been following this path successfully forthe past two years with the SP1 stereo vision system, which has enabled completely newapplications in the fields of robotics, automation technology, medical technology, autonomousdriving and other domains. Now the company introduces two successors:
SceneScan and SceneScan Pro. Real eye-catchers in a double sense: stereo vision in an elegant design!But more important is, of course, the significantly improved inner workings of the two new modelsin comparison to their predecessor. The new hardware allows processing rates of up to 100 framesper second at resolutions of up to 3 megapixels, which leaves the SP1 far behind:
Photo Credit: Nerian Vision Technologies – www.nerian.com

The table illustrates the difference: while SceneScan Pro has the highest possible computing powerand is designed for the most demanding applications, SceneScan has been cost-reduced forapplications with lower requirements. The customer can thus optimize his embedded vision solution both in terms of costs and technology.
The new duo is completed by Nerian’s proven Karmin stereo cameras. Of course, industrialUSB3Vision cameras by other manufacturers are also supported.This combination not only supports the above-mentioned applications even better, but alsofacilitates completely new and innovative ones. If required, customer-specific adaptations are alsopossible.
ContactNerian Vision TechnologiesOwner: Dr. Konstantin SchauweckerGotenstr. 970771 Leinfelden-EchterdingenGermanyPhone: +49 711 / 2195 9414Email: service@nerian.comWebsite: http://nerian.com
Press Release Authored By: Nerian Vision Technologies
Photo Credit: Nerian Vision Technologies – www.nerian.com
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#431155 What It Will Take for Quantum Computers ...

Quantum computers could give the machine learning algorithms at the heart of modern artificial intelligence a dramatic speed up, but how far off are we? An international group of researchers has outlined the barriers that still need to be overcome.
This year has seen a surge of interest in quantum computing, driven in part by Google’s announcement that it will demonstrate “quantum supremacy” by the end of 2017. That means solving a problem beyond the capabilities of normal computers, which the company predicts will take 49 qubits—the quantum computing equivalent of bits.
As impressive as such a feat would be, the demonstration is likely to be on an esoteric problem that stacks the odds heavily in the quantum processor’s favor, and getting quantum computers to carry out practically useful calculations will take a lot more work.
But these devices hold great promise for solving problems in fields as diverse as cryptography or weather forecasting. One application people are particularly excited about is whether they could be used to supercharge the machine learning algorithms already transforming the modern world.
The potential is summarized in a recent review paper in the journal Nature written by a group of experts from the emerging field of quantum machine learning.
“Classical machine learning methods such as deep neural networks frequently have the feature that they can both recognize statistical patterns in data and produce data that possess the same statistical patterns: they recognize the patterns that they produce,” they write.
“This observation suggests the following hope. If small quantum information processors can produce statistical patterns that are computationally difficult for a classical computer to produce, then perhaps they can also recognize patterns that are equally difficult to recognize classically.”
Because of the way quantum computers work—taking advantage of strange quantum mechanical effects like entanglement and superposition—algorithms running on them should in principle be able to solve problems much faster than the best known classical algorithms, a phenomenon known as quantum speedup.
Designing these algorithms is tricky work, but the authors of the review note that there has been significant progress in recent years. They highlight multiple quantum algorithms exhibiting quantum speedup that could act as subroutines, or building blocks, for quantum machine learning programs.
We still don’t have the hardware to implement these algorithms, but according to the researchers the challenge is a technical one and clear paths to overcoming them exist. More challenging, they say, are four fundamental conceptual problems that could limit the applicability of quantum machine learning.
The first two are the input and output problems. Quantum computers, unsurprisingly, deal with quantum data, but the majority of the problems humans want to solve relate to the classical world. Translating significant amounts of classical data into the quantum systems can take so much time it can cancel out the benefits of the faster processing speeds, and the same is true of reading out the solution at the end.
The input problem could be mitigated to some extent by the development of quantum random access memory (qRAM)—the equivalent to RAM in a conventional computer used to provide the machine with quick access to its working memory. A qRAM can be configured to store classical data but allow the quantum computers to access all that information simultaneously as a superposition, which is required for a variety of quantum algorithms. But the authors note this is still a considerable engineering challenge and may not be sustainable for big data problems.
Closely related to the input/output problem is the costing problem. At present, the authors say very little is known about how many gates—or operations—a quantum machine learning algorithm will require to solve a given problem when operated on real-world devices. It’s expected that on highly complex problems they will offer considerable improvements over classical computers, but it’s not clear how big problems have to be before this becomes apparent.
Finally, whether or when these advantages kick in may be hard to prove, something the authors call the benchmarking problem. Claiming that a quantum algorithm can outperform any classical machine learning approach requires extensive testing against these other techniques that may not be feasible.
They suggest that this could be sidestepped by lowering the standards quantum machine learning algorithms are currently held to. This makes sense, as it doesn’t really matter whether an algorithm is intrinsically faster than all possible classical ones, as long as it’s faster than all the existing ones.
Another way of avoiding some of these problems is to apply these techniques directly to quantum data, the actual states generated by quantum systems and processes. The authors say this is probably the most promising near-term application for quantum machine learning and has the added benefit that any insights can be fed back into the design of better hardware.
“This would enable a virtuous cycle of innovation similar to that which occurred in classical computing, wherein each generation of processors is then leveraged to design the next-generation processors,” they conclude.
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#430830 Biocomputers Made From Cells Can Now ...

When it comes to biomolecules, RNA doesn’t get a lot of love.
Maybe you haven’t even heard of the silent workhorse. RNA is the cell’s de facto translator: like a game of telephone, RNA takes DNA’s genetic code to a cellular factory called ribosomes. There, the cell makes proteins based on RNA’s message.
But RNA isn’t just a middleman. It controls what proteins are formed. Because proteins wiz around the cell completing all sorts of important processes, you can say that RNA is the gatekeeper: no RNA message, no proteins, no life.
In a new study published in Nature, RNA finally took center stage. By adding bits of genetic material to the E. Coli bacteria, a team of biohackers at the Wyss Institute hijacked the organism’s RNA messengers so that they only spring into action following certain inputs.
The result? A bacterial biocomputer capable of performing 12-input logic operations—AND, OR, and NOT—following specific inputs. Rather than outputting 0s and 1s, these biocircuits produce results based on the presence or absence of proteins and other molecules.
“It’s the greatest number of inputs in a circuit that a cell has been able to process,” says study author Dr. Alexander Green at Arizona State University. “To be able to analyze those signals and make a decision is the big advance here.”
When given a specific set of inputs, the bacteria spit out a protein that made them glow neon green under fluorescent light.
But synthetic biology promises far more than just a party trick—by tinkering with a cell’s RNA repertoire, scientists may one day coax them to photosynthesize, produce expensive drugs on the fly, or diagnose and hunt down rogue tumor cells.
Illustration of an RNA-based ‘ribocomputing’ device that makes logic-based decisions in living cells. The long gate RNA (blue) detects the binding of an input RNA (red). The ribosome (purple/mauve) reads the gate RNA to produce an output protein. Image Credit: Alexander Green / Arizona State University
The software of life
This isn’t the first time that scientists hijacked life’s algorithms to reprogram cells into nanocomputing systems. Previous work has already introduced to the world yeast cells that can make anti-malaria drugs from sugar or mammalian cells that can perform Boolean logic.
Yet circuits with multiple inputs and outputs remain hard to program. The reason is this: synthetic biologists have traditionally focused on snipping, fusing, or otherwise arranging a cell’s DNA to produce the outcomes they want.
But DNA is two steps removed from proteins, and tinkering with life’s code often leads to unexpected consequences. For one, the cell may not even accept and produce the extra bits of DNA code. For another, the added code, when transformed into proteins, may not act accordingly in the crowded and ever-changing environment of the cell.
What’s more, tinkering with one gene is often not enough to program an entirely new circuit. Scientists often need to amp up or shut down the activity of multiple genes, or multiple biological “modules” each made up of tens or hundreds of genes.
It’s like trying to fit new Lego pieces in a specific order into a room full of Lego constructions. Each new piece has the potential to wander off track and click onto something it’s not supposed to touch.
Getting every moving component to work in sync—as you might have guessed—is a giant headache.
The RNA way
With “ribocomputing,” Green and colleagues set off to tackle a main problem in synthetic biology: predictability.
Named after the “R (ribo)” in “RNA,” the method grew out of an idea that first struck Green back in 2012.
“The synthetic biological circuits to date have relied heavily on protein-based regulators that are difficult to scale up,” Green wrote at the time. We only have a limited handful of “designable parts” that work well, and these circuits require significant resources to encode and operate, he explains.
RNA, in comparison, is a lot more predictable. Like its more famous sibling DNA, RNA is composed of units that come in four different flavors: A, G, C, and U. Although RNA is only single-stranded, rather than the double helix for which DNA is known for, it can bind short DNA-like sequences in a very predictable manner: Gs always match up with Cs and As always with Us.
Because of this predictability, it’s possible to design RNA components that bind together perfectly. In other words, it reduces the chance that added RNA bits might go rogue in an unsuspecting cell.
Normally, once RNA is produced it immediately rushes to the ribosome—the cell’s protein-building factory. Think of it as a constantly “on” system.
However, Green and his team found a clever mechanism to slow them down. Dubbed the “toehold switch,” it works like this: the artificial RNA component is first incorporated into a chain of A, G, C, and U folded into a paperclip-like structure.
This blocks the RNA from accessing the ribosome. Because one RNA strand generally maps to one protein, the switch prevents that protein from ever getting made.
In this way, the switch is set to “off” by default—a “NOT” gate, in Boolean logic.
To activate the switch, the cell needs another component: a “trigger RNA,” which binds to the RNA toehold switch. This flips it on: the RNA grabs onto the ribosome, and bam—proteins.
BioLogic gates
String a few RNA switches together, with the activity of each one relying on the one before, and it forms an “AND” gate. Alternatively, if the activity of each switch is independent, that’s an “OR” gate.
“Basically, the toehold switches performed so well that we wanted to find a way to best exploit them for cellular applications,” says Green. They’re “kind of the equivalent of your first transistors,” he adds.
Once the team optimized the designs for different logic gates, they carefully condensed the switches into “gate RNA” molecules. These gate RNAs contain both codes for proteins and the logic operations needed to kickstart the process—a molecular logic circuit, so to speak.
If you’ve ever played around with an Arduino-controlled electrical circuit, you probably know the easiest way to test its function is with a light bulb.
That’s what the team did here, though with a biological bulb: green fluorescent protein, a light-sensing protein not normally present in bacteria that—when turned on—makes the microbugs glow neon green.
In a series of experiments, Green and his team genetically inserted gate RNAs into bacteria. Then, depending on the type of logical function, they added different combinations of trigger RNAs—the inputs.
When the input RNA matched up with its corresponding gate RNA, it flipped on the switch, causing the cell to light up.

Their most complex circuit contained five AND gates, five OR gates, and two NOTs—a 12-input ribocomputer that functioned exactly as designed.
That’s quite the achievement. “Everything is interacting with everything else and there are a million ways those interactions could flip the switch on accident,” says RNA researcher Dr. Julies Lucks at Northwestern University.
The specificity is thanks to RNA, the authors explain. Because RNAs bind to others so predictably, we can now design massive libraries of gate and trigger units to mix-and-match into all types of nano-biocomputers.
RNA BioNanobots
Although the technology doesn’t have any immediate applications, the team has high hopes.
For the first time, it’s now possible to massively scale up the process of programming new circuits into living cells. We’ve expanded the library of available biocomponents that can be used to reprogram life’s basic code, the authors say.
What’s more, when freeze-dried onto a piece of tissue paper, RNA keeps very well. We could potentially print RNA toehold switches onto paper that respond to viruses or to tumor cells, the authors say, essentially transforming the technology into highly accurate diagnostic platforms.
But Green’s hopes are even wilder for his RNA-based circuits.
“Because we’re using RNA, a universal molecule of life, we know these interactions can also work in other cells, so our method provides a general strategy that could be ported to other organisms,” he says.
Ultimately, the hope is to program neural network-like capabilities into the body’s other cells.
Imagine cells endowed with circuits capable of performing the kinds of computation the brain does, the authors say.
Perhaps one day, synthetic biology will transform our own cells into fully programmable entities, turning us all into biological cyborgs from the inside. How wild would that be?
Image Credit: Wyss Institute at Harvard University Continue reading

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