AI will Surge to 1 Trillion, OpenAI Pitches to White House, Wiz Sells Shares
AI will Surge to 1 Trillion, OpenAI Pitches to White House, Wiz Sells Shares
AI Market Will Surge to Near $1 Trillion by 2027, Bain Says - Bloomberg
The global market for AI-related products is expected to reach $990 billion in 2027, up 40% to 55% annually from last year's $185 billion. The growth will be driven by bigger AI systems and larger data centers to train and run them, driven by companies and governments using the technology to boost efficiency. Demand for upstream chip components could rise 30% or more by 2026, straining supply chains for components such as chips needed to run the services.Governments are investing billions of dollars to subsidize sovereign AI, investing in domestic computing infrastructure and AI models. Establishing successful sovereign AI ecosystems will be time-consuming and expensive.
OpenAI Pitched White House on Unprecedented Data Center Buildout - Bloomberg
Google Cloud has collaborated with its research arm, Google DeepMind, to integrate its AI models into popular consumer products.
Collaboration between Google Cloud and DeepMind can help accelerate product to market and show how AI investments can turn into new business.
Google has been under pressure to smooth the path from research labs to products for consumers and businesses due to the acceleration of progress in the field of AI. 10
DeepMind researchers are motivated by seeing their work in the hands of real products and users, leading to a culture shift in the research community. 11
Companies have struggled to unite research and product teams, which often have different incentives and incentives. 12
Strengthening ties with DeepMind has been a key focus, with teams working closely in London, Seattle, and the Bay Area.
Fortescue Electrifies Iron Ore Trucks in $2.8 Billion Deal - Bloomberg
Caroline Ellison, former CEO of Alameda Research, has been sentenced to 24 months in prison for her role in the FTX collapse.
She helped prosecutors in the conviction of her former boss and boyfriend, Sam Bankman-Fried, in the financial fraud trial
The US District Judge praised her cooperation but noted that her punishment was necessary to deter others from similar conduct
FTX filed for bankruptcy in late 2022, exposing a yearslong fraud that swindled about $10 billion from customers, investors, and lenders
Ellison was ordered to forfeit $11 billion as proceeds of the crime, and her prison sentence will be followed by three years of probation
Her punishment likely signals how Kaplan will sentence two other main cooperators in the case, FTX co-founder Gary Wang and former engineering chief Nishad Singh, later this fall.
Wiz In Talks to Sell Shares at Valuation as High as $20 Billion - Bloomberg
Caroline Ellison, former CEO of Alameda Research, has been sentenced to 24 months in prison for her role in the FTX collapse.
She helped prosecutors in the conviction of her former boss and boyfriend, Sam Bankman-Fried, in the financial fraud trial
The US District Judge praised her cooperation but noted that her punishment was necessary to deter others from similar conduct
FTX filed for bankruptcy in late 2022, exposing a yearslong fraud that swindled about $10 billion from customers, investors, and lenders
Ellison was ordered to forfeit $11 billion as proceeds of the crime, and her prison sentence will be followed by three years of probation
Her punishment likely signals how Kaplan will sentence two other main cooperators in the case, FTX co-founder Gary Wang and former engineering chief Nishad Singh, later this fall.
Big Tech IT Distributor Carahsoft Raided by FBI in Virginia - Bloomberg
Federal agents searched the Washington-area offices of Carahsoft Technology Corp., a major distributor of technology products to government agencies.
Agents collected documents and employee computers from the headquarters in Reston, Virginia, during a court-authorized law enforcement activity on the street where the company has its offices.
Mark Zuckerberg’s Political Evolution - New York Times
Mark Zuckerberg, once a backer of liberal causes, now wants to stay away from politics
Zuckerberg has expressed cynicism about politics after years of bad experiences in Washington
He and others at Meta, the parent company of Facebook, believed trying to continue engaging with political causes would only draw further scrutiny to their company
Mr. Zuckerberg has stopped supporting programs at his philanthropy that could be perceived as partisan, and he has tamped down employee activism at Meta
In public, he is declining to engage with Washington except when necessary
Privately, he considers his personal politics to be more like libertarianism or classical liberalism
His evolution has drawn comparatively little attention compared to other tech titans like Elon Musk, who have publicly attached themselves to conservatives and former President Donald Trump
Chief executives in Silicon Valley have grown frustrated with contentious social issues and largely backed away from political engagement
How Meta Distanced Itself From Politics - New York Times
Meta has de-emphasized political content on its Facebook, Instagram, and Threads apps ahead of the US election.
The company has reduced the number of full-time employees working on election security and disbanded the election integrity team, employees have told the BBC
Mark Zuckerberg, the founder of Meta, wants to distance himself and his company from politics to be neutral and not appear to be playing a role
Meta is recommending more content about sports, cooking, animals, and celebrity gossip to its users instead of politics
Political conversations are taking place more prominently on other platforms, such as TikTok and Elon Musk's X
Misinformation and conspiracy theories still spread on private groups on Facebook and WhatsApp, and the company continues to regularly remove disinformation campaigns
While it is harder to find political posts on Meta's apps, users do not have to opt in to see explicit content by default
Spurned by Social Media, Publishers Chase Readers on WhatsApp - New York Times
Digital news publishers are struggling to keep up with the decline in traffic and ad revenue from social media platforms like Google and Facebook.
WhatsApp Channels, a feature in the app that allows publishers to send links and headlines directly to followers, is being used as a way to draw in readers and build relationships with audiences outside the US.
Noticias Telemundo, a news outlet, has gained over 30,000 followers on WhatsApp in just the first two weeks and has since grown to over 820,000 subscribers. The channel often creates original content for its channel, such as short videos from reporters on the ground or polls on news topics.
China to Investigate U.S. Retailer, Sending a Message Over Xinjiang - New York Times
China is investigating whether PVH, the owner of Calvin Klein and Tommy Hilfiger brands, has avoided buying from Xinjiang.
PVH has 30 days to provide documents to China's Ministry of Commerce regarding whether it has avoided purchases from the region where the Chinese government has cracked down on Muslim minorities.
The investigation is a new escalation of China's effort to fight bans or consumer boycotts of goods in Xinjiang due to evidence of forced labor among the region's Muslim ethnic groups, particularly the Uyghurs. - Many Western governments have begun restricting or banning products or banning them due to concerns about forced labor and the use of cotton production tainted by coercion. If PVH does not comply with the government's demand, it may face retaliation in China, which is the world's largest manufacturer and largest consumer market.
Many companies, particularly apparel retailers, depend heavily on factories in China and could be vulnerable to sanctions if Beijing imposes sanctions on their subsidiaries or suppliers.
An East Coast Port Strike Could Shake the Economy - New York Times
Businesses are preparing for a strike by dockworkers on the East and Gulf Coasts, which could begin on Oct. 1 if negotiations don't yield a new contract.
Importers have accelerated imports and redirected cargo to prevent a walkout, with many shipments diverted to West Coast ports where there is already a labor contract dispute with the International Longshoremen's Association (I.L.A.)
A short strike could lead to significant disruptions and cost the economy $5 billion a day, or about 6% of gross domestic product, expressed daily
The ports of Long Beach and Los Angeles say they are handling at least as many containers as they did during the pandemic shipping boom of 2021-22
President Biden is not planning to force dockworkers back to work, which the 1947 Taft-Hartley Act authorizes him to do
Just over half of imported apparel, footwear and accessories come through East Coast ports, according to Stephen Lamar, president of the American Apparel and Footwear Association
Trade Association estimates that 15% of goods would be stranded if workers go on strike next week
Union wages have significantly eroded over the past six years, making it difficult for East Coast unions to negotiate wage increases.
US antitrust lawsuit accuses Visa of using dominance to shut down rivals - Financial Times
The US Department of Justice is preparing to file an antitrust lawsuit against Visa, accusing the payments company of anti-competitive behaviour.
The move comes after a years-long review by the DoJ into Visa's business practices, including its debit card business in the US and competition in other networks and payment methods.
Federal prosecutors are set to file a lawsuit as early as Tuesday, according to a person familiar with the matter. The DoJ declined to comment on the prospective lawsuit, and Visa shares fell almost 2% in after-hours trading.
Energy-hungry tech groups express interest in US-led carbon credits scheme - Financial Times
-Tech groups including Meta and Netflix are expressing interest in backing a carbon credits scheme spearheaded by John Kerry.- The scheme allows regional governments or state bodies to earn carbon credits by reducing their power sector's emissions and selling them to polluting companies to finance the shift to renewable energy.
Businesses must cut their emissions directly to participate in the carbon credits market, even as some prepare to pour money into offsets
Carbon credits are seen as a means to attract private money to clean energy projects in developing nations, particularly in Africa, south-east Asia, and South America
The ETA is examining pilot decarbonisation projects in Chile, the Dominican Republic, and the Philippines
Microsoft has reported an emissions increase of almost a third since 2030 due to constructing data centres.
Qatar’s Ooredoo wades into Gulf’s AI data centre rivalry - Financial Times
Qatari telecoms company Ooredoo is borrowing QR2bn ($550mn) to expand its regional network of data centres.
Mena Digital Hub, its data centre subsidiary, has obtained a 10-year financing facility from three Qatari banks to overhaul and expand its data centres to meet demand for AI applications.
Gulf nations are betting heavily on AI to diversify their hydrocarbon-dependent economies and provide cheap power for energy-hungry computing warehouses that crunch vast quantities of data for AI uses. e-commerce giant Saudi Arabia and the tech-focused United Arab Emirates are expected to become the biggest markets for data centres and AI in the region. o-oredoo aims to build 120MW of data centre capacity in the next five years, equivalent to about half of the region's 237MW market today. - The Gulf is an attractive market for computing warehouses due to its cheap power, empty land, and regulatory requirements for local data processing within the country.
Raspberry Pi boosted by higher than expected profits - Financial Times
UK computer maker Raspberry Pi reports higher than expected profits in its first earnings report since debut on London Stock Exchange in June
Sales volumes were slightly lower than expected but weighted towards higher-margin products, boosting profits
Gross profit of $34.2mn in the first six months of 2024 was higher than internal forecasts and a 47% increase on the same period in 2023
Revenue for the period was $144mn, up from $89.3mn last year, keeping full-year outlook unchanged
UAE president meets Joe Biden in push for more US AI technology - Financial Times
UAE leader to meet Biden in Washington to discuss AI co-operation with US
UAE aims to secure easier access to advanced US-made technology
AI central to Abu Dhabi's plan to wean itself off fossil fuel exports and partner with American companies
Gulf states have been restricted from freely importing American-made AI chips due to concerns about technology leaks to China
Microsoft has invested $1.5bn in the UAE's most important AI group G42
MGX, a new Abu Dhabi investment vehicle dedicated to AI, has launched a $30bn fund to invest in data centres and energy to power them
Sheikh Tahnoon bin Zayed al-Nahyan has spearheaded UAE's efforts to secure US backing for its AI ambitions.
How Meta's Smart Ray-Ban Glasses Spawned a Silicon Valley Hit - Wall Street Journal
Meta's Ray-Ban smart glasses are gaining popularity among consumers who use them for photo-taking and social media content creation.
The second version of the glasses, made in collaboration with EssilorLuxottica, went on sale in October 2023 and has had higher demand than expected, with over 700,000 pairs shipped so far
Users can record videos with the glasses by pressing a button to start a 30-second, 60-second or three-minute video
Sales figures for the most recent iteration have not been disclosed, but shipments have doubled from the first to the second quarter this year
Meta may be finding an interested user base among content creators who use its Instagram and Facebook apps to post videos online to make money
Christopher Söderberg, a freelance consultant for influencers, uses the glasses to film videos for social media and kick-start his own career
Analysts predict that the glasses will be a holiday hit and are expected to be a game changer for the market.
Chip Giants TSMC and Samsung Discuss Building Middle Eastern Megafactories - Wall Street Journal
Taiwan Semiconductor Manufacturing Co. and Samsung Electronics are considering building large factory complexes in the United Arab Emirates. The projects could transform the chip-making industry and become a cornerstone for artificial-intelligence investments in the Middle East. The U.A. is funding the projects, with Abu Dhabi-based sovereign development vehicle Mubadala playing a central role in developing a domestic tech industry. The goal is to increase global chip production and help bring chip prices down without hurting chip-makers' profitability. The discussions are still in the early phases and face technical and other hurdles that mean they might not pan out. There are concerns about the availability of engineering talent to staff major new factories far from the companies' home bases.
How Intel Fell From Global Chip Champion to Takeover Target - Wall Street Journal
Intel is being considered as a takeover target by Qualcomm due to its strategic missteps and the rise of the artificial-intelligence boom.
CEO Pat Gelsinger had planned to build up Intel's contract chip-making business and sell it to design-only chip companies such as Qualcomm to catch up to Asian rivals.
However, Intel has fallen behind in the race to manufacture the fastest-performing chips with the smallest transistors, which has led to a shift towards AI. The rise of generative AI has shifted demand away from Intel's central processors and towards Nvidia's graphics processing units. (
Intel laid off 15,000 people, cut costs by $10 billion next year, and scraped the dividend last year to preserve its turnaround effort).
Analysts and investors are still interested in the takeover, but a deal with Qualcomm is far from certain due to regulatory and other reasons.
Tech Jobs Have Dried Up---and Aren't Coming Back Soon - Wall Street Journal
Glenn Kugelman resorted to using paper and duct tape to advertise his LinkedIn profile to potential employers in the tech industry.
The job market for tech workers is harder than it was a few years ago, with a shift towards revenue-generating products and services from entry-level hires and cutting back on non-big money-making areas like virtual reality and devices.
Postings for software development jobs have decreased by over 30% since February 2020, and tech companies have shed around 137,000 jobs since January, according to Layoffs.fyi.com. The pandemic caused tech companies to go on hiring sprees and take on far too many workers, leading to a downturn in the economy. Some tech employers, some of which had never done large-scale layoffs before, are now cutting tens of thousands of jobs. The shift in hiring strategies signals a reset in an industry that is fundamentally readjusting its labor needs and pushing some workers out. Some employees are being hired to do nothing due to the pandemic-induced job market downturn.
They Bought Homes With Their Friends---and Now They Want Out - Wall Street Journal
More friend groups are buying homes together in recent years, especially those who couldn't afford to go it alone in the pandemic housing market.
The number of co-buyers with different last names hitting a record in data going back a decade in 2021 fell 29.5% over the following two years, according to real-estate analytics firm Attom Data Solutions.
When co-ownerships end, it is usually not because of conflict, but rather because people are leaving due to various reasons such as moving, getting married, or moving to a different city
Falling interest rates could make traditional homeownership more affordable to first-time home buyers, potentially opening up the option to refinance or move to a new home with better terms
However, close quarters can spark difficulties and conflicts can arise when buying a home with friends
Pandemic shutdowns in 2020 made things worse, as having disputes in front of another family was awkward and felt like being in a daycare
Co-ownership agreements can be difficult to work with