Monthly Archives: August 2023

"It was difficult to maintain a poker face when the leader of a big US tech firm I was chatting to said there was a definite tipping point at which the firm would exit the UK," writes a BBC technology editor: Many of these companies are increasingly fed up. Their "tipping point" is UK regulation and it's coming at them thick and fast. The Online Safety Bill is due to pass in the autumn. Aimed at protecting children, it lays down strict rules around policing social media content, with high financial penalties and prison time for individual tech execs if the firms fail to comply. One clause that has proved particularly controversial is a proposal that encrypted messages, which includes those sent on WhatsApp, can be read and handed over to law enforcement by the platforms they are sent on, if there is deemed to be a national security or child protection risk...

Currently messaging apps like WhatsApp, Proton and Signal, which offer this encryption, cannot see the content of these messages themselves. WhatsApp and Signal have both threatened to quit the UK market over this demand.

The Digital Markets Bill is also making its way through Parliament. It proposes that the UK's competition watchdog selects large companies like Amazon and Microsoft, gives them rules to comply with and sets punishments if they don't. Several firms have told me they feel this gives an unprecedented amount of power to a single body. Microsoft reacted furiously when the Competition and Markets Authority (CMA) chose to block its acquisition of the video game giant Activision Blizzard. "There's a clear message here the European Union is a more attractive place to start a business than the United Kingdom," raged chief executive Brad Smith. The CMA has since re-opened negotiations with Microsoft. This is especially damning because the EU is also introducing strict rules in the same vein but it is collectively a much larger and therefore more valuable market.

In the UK, proposed amendments to the Investigatory Powers Act, which included tech firms getting Home Office approval for new security features before worldwide release, incensed Apple so much that it threatened to remove Facetime and iMessage from the UK if they go through. Clearly the UK cannot, and should not, be held to ransom by US tech giants. But the services they provide are widely used by millions of people. And rightly or wrongly, there is no UK-based alternative to those services. The article concludes that "It's a difficult line to tread. Big Tech hasn't exactly covered itself in glory with past behaviours and lots of people feel regulation and accountability is long overdue."

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Why US Tech Giants Are Threatening to Leave the UK - Slashdot

Technology companies are showing the largest shift in returning to the office, following changes in policies at a number of tech giants including Amazon, Alphabet and Meta.

Average attendance increased from 15% to 32% compared to the same time in 2022, according to a study of 119 workplaces in 22 countries by AWA, a global workplace consultancy. The responses, collated in between April and May 2023 and representing organisations employing close to 155,000 people, also saw the technology industry report an average of 46% of desks being used, increasing from 21% last year.

The report follows a number of announcements from tech companies, rolling back on hybrid working policies which came about as a result of the COVID-19 pandemic.

As first reported by CNBC, Meta told its employees they would need to work from the companys offices three days a week beginning in September.

Amazon, meanwhile, told its employees earlier this year of an expectation that workers would be in the office at least three days a week, while Google parent company Alphabet asked employees to return to their desks in April.

Even video conferencing platform Zoom - a major enabler in the sudden shift to remote working as a result of the pandemic - has asked its employees to return to the office, announcing it would be taking a structured hybrid approach to work.

According to AWAs research, the average office attendance is the equivalent to 1.6 days per week and means the technology industry is now at a similar average attendance as financial services, which sits at 35%.

Overall, AWAs third Hybrid Index study has found that organisations are responding to the shift to hybrid working by improving their desk use in offices and reducing their real estate needs. 37% of employers said they were planning to reduce their office space through disposals, subletting or consolidation. This is a result of the improved desk utilisation as organisations adapt to the new reality of hybrid working, with the percentage of desks in use on average rising to 48% from 33% a year ago.

It doesnt come as much of a surprise to see a significant increase in technology companies returning to the office, Andrew Mawson, founder of AWA, said. Most major tech companies are mandating some form of in-office work including Meta, Amazon, Apple, and more recently, Zoom. However, we continue to believe we have reached a steady state on hybrid working. Savvy employers are using the new reality to become more efficient, improving desk use and reducing their real estate needs. We expect this to result in a gradual build-up of empty office space over the next 5-10 years as leases expire, with a resultant downward pressure on rents and asset values.

However, AWA has found that three years since working practices changed at the start of the pandemic, 46% of offices do not have a hybrid working policy. Where employers mandate people to come into the office a specific number of days per week, the employees come in significantly fewer days, indicating that ordering staff back doesnt work.

In our experience, hybrid working changes everything from employment contracts, skills, recruitment strategies, workplace design, security and more, adds Mawson. While some organisations have taken a lets see what happens approach to hybrid working since the end of the pandemic, we believe its now time for all tech organisations to develop holistic hybrid working policies and address a wide set of issues to prepare themselves for the future.

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Hybrid working: Tech companies demanding end to remote work - Technology Magazine

New Delhi: Tech companies have laid off 226,000 employees so far this year, almost 40 per cent more than in 2022, a report showed on Tuesday.

Although the tech industry has seen a shocking number of job cuts last year, 2023 has been much worse.

The massive wave of layoffs has shut down hundreds of thousands of workplaces, turning 2023 into the worst year the tech industry has ever seen, according to data by AltIndex.com.

Between January and December 2022, tech companies laid off 164,744 employees, almost eleven times more than 15,000 reported a year before, as per data from Layoffs.fyi.

A shocking 75,912 people lost their jobs in January alone, almost half of all layoffs reported in 2022.

Since then, they have let go nearly 24,000 staff members, pushing the total number of layoffs to 226,117 as of last week, said the report.

Facing an uncertain global economy, inflation, ongoing supply chain issues, and slowing revenue growth, the tech companies picked up the pace of layoffs in 2023, led by giants like Google, Meta, Microsoft, and Amazon.

"But hundreds of other smaller tech companies, from retail and crypto to the transportation market, have also been forced to make painful cost-cutting measures, resulting in the highest number of layoffs the tech industry has ever seen," the report noted.

US tech giants had a massive role in the 2023 wave of layoffs. In fact, statistics show US companies made eight out of the ten largest job cuts reported this year, the report noted.

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Tech companies laid off 226,000 employees to date, 40% more than ... - ETTelecom

This content was published on August 14, 2023 - 20:20 August 14, 2023 - 20:20

(Bloomberg) -- Tech stocks had their best day in two weeks, helping US equities edge higher in light trading as traders weighed the prospect of a soft landing for the economy. Treasuries fell.

The tech-heavy Nasdaq 100 rose1.2%as AI-favorite Nvidia Corp. and other technology giants drove Mondays advance. On Friday, the tech-heavy benchmark had notched its longest weekly losing streak this year, the gauge has slid 3.5% in August. Smaller stocks were under pressure with the Russell 2000 touching the lowest in a month as risk-appetite waned.

August is typically a slow month due to low liquidity and moves in either direction should not be taken seriously, according to Jason Draho, head of asset allocation Americas at UBS Global Wealth Management.

The fundamental outlook for the US economy hasnt materially changed in the past two weeks, Draho wrote. Investors should take any data point or two and week-to-week market moves with a grain of salt, especially during the summer slowdown.

Treasury yields wavered before ticking higher as high-grade corporate bond sales weighed on prices. The policy sensitive two-year advanced for the fourth day to approach 5%, while the 10-year traded at4.19%, the highest since November.

Traders are betting interest rates will outpace inflation for years to come while investors sitting on record first-half gains are having to contend with central bankers warning they are in no rush to cut interest rates.

Some retracement of the broad market since July 31 suggests to us a pause that refreshes has likely occurred, rather than the end of the bull market, John Stoltzfus, chief investment strategist at Oppenheimer & Co., wrote in a research note. We remain of the view based on improving economic and corporate fundamentals that the US economy could actually skirt a recession this cycle.

Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, takes a dimmer view saying the economy is already in a rolling recession that will hit the services sector next.

Consumption, profit margins and corporate pricing power are yet to be reset, as the delayed impact of tighter policy should ultimately pressure nominal gains, she wrote.

Updates from China unnerved markets on Monday amid concerns about Country Garden Holdings Co. and private-wealth manager, Zhongzhi Enterprise Group Co. Country Garden, once Chinas biggest developer, has emerged as the latest flashpoint of the countrys property woes.

The more days that go by without a comprehensive fiscal stimulus plan the more clear it becomes there will not be one, Brad Bechtel, a Jefferies strategist said of Chinas central bank. The big bazooka is not coming.

Focus later this week will be on minutes of the Federal Reserves latest policy meeting as traders seek clues on the central banks next move. Investors whod bet on a pivot to easier policy this year are having to adjust their bets as officials signal they will keep interest rates higher for longer.

In emerging markets, Argentinas already-distressed debt sagged after a populist who vowed to burn down the central bank won surprisingly strong support in a primary vote.

Read more: Out of Options and Money, Argentina Presses the Panic Button

The greenback strengthened while the offshore yuan fell to its weakest since November and the ruble crashed through the level of 100 to the dollar for the first time since March. In commodities, gold and crude slumped.

Corporate Highlights:

Key events this week:

Some of the main moves in markets:

Stocks

Currencies

Cryptocurrencies

Bonds

Commodities

This story was produced with the assistance of Bloomberg Automation.

--With assistance from Cecile Gutscher.

2023 Bloomberg L.P.

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Tech Giants Take the Lead in Thin Trading Session: Markets Wrap - SWI swissinfo.ch in English

Investor interest in artificial intelligence (AI) startups may be waning as tech giants catch up in the space, according to Meera Clark, a principal at Redpoint Ventures. Clark notes that VC expectations for early-stage AI companies have decreased in recent months, as investors have become more skeptical about the actual technological advantages these startups possess. She cites Adobes entry into the image generation market with its Firefly launch as an example of a large tech company catching up to the hype.

PitchBook data shows a decline in both the number and value of seed-stage AI deals this summer. The value of AI seed deals in the US dropped from $295 million in March to around $179 million in July. Clark suggests that investors may be growing fatigued with seed investments that quickly lose value due to the proliferation of AI models like GPT.

As venture capitalists become more discerning in their investments and Series A funding becomes increasingly difficult to secure, startups will need to demonstrate a solid competitive advantage in the AI space. The question of defensibility, or what sets one AI company apart from another, remains a central concern.

In conclusion, investor enthusiasm for AI startups has tempered in recent months as tech giants enter the market and as the true differentiators of these startups come under scrutiny. As seed investors become more cautious, startups will need to prove their competitive advantage to secure funding in the next round.

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Investor Interest in AI Startups Begins to Cool as Tech Giants Catch Up - Fagen wasanni

Generative AI is redefining the dynamics of human-computer interaction, emerging as a technological powerhouse that could establish itself as a standalone platform.

While the integration of AI into our daily lives was gradual up to 2021, tools such as ChatGPT have struck a deeper chord with global audiences, thanks to their vast utility in communication and creative domains.

The world of Generative AI, marked further breakthroughs like LLama 2, GitHub Copilot, and Stable Diffusion, is revolutionizing not just technology, but economies as well. Big Tech companies, recognizing the groundbreaking potential, have been pouring capital into this domain.

Generative AI Market Size Projection (Billion $)

The immense growth potential of generative AI is further validated by a recent report from Precedence Research. The global generative AI market was valued at a substantial USD 10.79 billion in 2022 and is expected to reach approximately USD 118.06 billion by 2032 with a 27% CAGR.

The below plot visualizes the monthly stock prices of five major tech companies: Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), and Meta (META) from June 2022 to August 2023.

While it's tempting to draw a direct link between these significant generative AI events and the stock prices of big tech companies, it's crucial to understand the stock market's multifaceted nature. Numerous factorsfrom global economic trends to geopolitical situations can influence stock prices.

However, one can't overlook the prominence generative AI has gained and how its milestones could have possibly played a role in investor sentiment and decision-making. The correlation between major AI events like

and stock price movements during this period suggest that investors are keenly watching the AI space.

Noteworthy mentions include OpenAI's rapid progression from ChatGPT to the more advanced GPT-4 and Anthropic's AI Claude 2, which showcased remarkable processing enhancements in a short span. Even Elon Musk has ventured further into the AI realm by founding a new AI-focused company named X.AI. As revealed on the X.AI website, the compact yet formidable team of 12 is set on a mission to understand the true nature of the universe.

Given the money flow in this industry, it's evident that Big Tech recognizes the potential of Generative AI and is actively seeking to shape its trajectory.

There are several reasons to believe that Big Tech could exert significant influence over Generative AI:

1. Data

Data is the bedrock of AI. Companies that can access vast and varied datasets have a clear advantage in AI product development. This Data Advantage is glaringly evident in Big Tech's strategic moves. With billions of users, these tech giants have effectively turned data acquisition into a virtuous cycle: more data leads to better products, which in turn attracts more users and even more data.

2. Computing Power

Beyond data, deploying advanced AI models requires immense computing power. The hardware and infrastructure required to train, fine-tune, and deploy these models are not only costly but also necessitate specialized knowledge and skills. This Computing Power Advantage ensures that while AI startups are emerging everywhere, most remain dependent on Big Tech's infrastructure. These startups often become acquisition targets, further amplifying the industry's consolidation.

3. Ecosystem Control

One of the notable capabilities of Big Tech is its ability to create integrated ecosystems that extend its reach. From search engines to smart devices, cloud platforms to e-commerce, their services are often interconnected. This interconnectedness facilitates the seamless integration of AI applications. For generative AI, this means a direct path to users across multiple touchpoints.

Take the example of Midjourney, which at present provides the best high-quality AI images commercially, yet is only accessible through Discord. Being bound to a single access point limits the startup's reach, especially when compared to products or services embedded within the vast ecosystems of Big Tech companies.

Generative AI is the talk of the town, transforming the technology landscape with potential that's as exciting as it is boundless. Both giants of the tech industry and emerging startups are making significant strides in this space, a clear indication that generative AI is more than just a buzzword. Its shaping up to be the next frontier in tech innovation. Lets delve deeper into what some of the industry leaders are up to.

Meta has its sights set on two major areas: Recommendations/Ranking and Generative models. The immense growth in organic engagement on platforms like Instagram, powered by AI recommendations, showcases the prowess of AI in enhancing user experience.

In contrast to competitors like Google and OpenAI who maintain proprietary stances on their AI models, Meta's open-source initiative represents a bold stand against restrictive tech practices. The underlying philosophy is voiced by CEO Mark Zuckerberg, who emphasizes the pivotal role of open-source software in propelling innovation. Llama 2s open-source model stands as an invitation to global developers, granting them access to iterate and innovate atop this foundation.

Other recent innovations from Meta include:

Ever since the groundbreaking acquisition of OpenAI, Microsoft has been relentless in its pursuit of Generative AI dominance.

Their partnership has birthed innovations like the Azure OpenAI service, enhancing the capabilities of Microsoft's cloud offerings. This fusion is further exemplified by the introduction of Github Copilot, showcasing the profound impact of AI on coding and development.

Yet, it's in consumer-centric services where Microsofts AI prowess becomes especially tangible. AI-enhanced features in Bing and Edge, such as conversational AI chatbots for search queries and content generation, have elevated user interactions with the digital realm.

Their latest unveilings, Bing Chat Enterprise, and Microsoft 365 Copilot, signal a bold step towards transforming workplace productivity and collaboration

Amazon, not one to be left behind, has its own story to tell in the world of AI. In a recent earnings call, Amazon CEO Andy Jassy revealed that every single one of Amazon's business sectors is deeply engaged with multiple generative AI initiatives. Amazons cloud offering AWS, has introduced tools specifically aimed at building with Generative AI.

Amazon's Alexa AI is shifting from supervised learning to a new paradigm of generalizable intelligence, reducing its reliance on human-annotated data. This move has birthed the Alexa Teacher Models (AlexaTM), large-scale multilingual systems inspired by OpenAI's GPT-3. Unlike most models, the AlexaTM 20B uses a unique sequence-to-sequence encoder-decoder design.

During its I/O conference on May 2023, Google repeatedly emphasized its transition into an AI-first' company, to the point where it became a meme. With a slew of announcements, the tech giant is not just aiming to catch up with its peers but to pioneer new avenues in AI.

Their answer to ChatGPT, the Bard powered by their Language Model for Dialogue Application (LaMDA), showcases their ambitions. Sundar Pichais vision for Bard is not just as a chatbot but a tool that can tap into the vast information reservoir of the web and provide intelligent, creative responses to users.

Apple, known for its close-guarded strategies, has been relatively silent about its specific plans in the AI arena. However, considering its historical emphasis on user experience and innovation, the tech community is eagerly waiting for Apples next big move. Given the comments from Tim Cook, its evident that AI holds importance in Apple's roadmap.

According to a Bloomberg report, Apple is gearing up to launch AJAX and Apple GPT. These AI tools are seen as Apple's counter to offerings from OpenAI and Google, signaling a heated competition ahead.

A clear testament to Apple's commitment to generative AI is its recent job listing for a Generative AI Applied Researcher. Apple is not just investing in technology but also in talent, ensuring they remain at the forefront of AI research and application.

Despite the firm grip of big tech on generative AI, there are startups that are not just surviving but thriving, offering innovative solutions and challenging the status quo. Their unique propositions, deep-rooted commitment to innovation, and community-centric approach underscore the vast potential and adaptability of the AI sector.

Hugging Face stands out as a frontrunner, bolstered by its emphasis on community-driven AI. Valued at approximately $2 billion, this entity offers open-source AI model development, fostering a sense of inclusiveness and collective growth within the AI community.

Stability AI has emerged as an influential player in the realm of AI-driven visual arts. Their signature offering, Stable Diffusion, translates textual inputs into images. With a valuation hovering around the $1 billion mark and operating out of London, Stability AI's recent exponential search growth attests to its rising influence. DreamStudio, one of its marquee platforms, empowers users to harness AI's might for crafting unique designs. Stability AI's emphasis on open-source tools resonates with its commitment to democratizing generative AI access.

Anthropic, focusing on AI safety and tailored content generation, represents another vibrant facet of this emerging ecosystem. Valued at a staggering $5 billion, this American startup has captured the attention of the tech behemoths, securing nearly $400 million from Google underscoring the intertwined relationship and keen interest of big tech in these startups. A noteworthy product from Anthropic is Claude, an AI chatbot, which, akin to ChatGPT, provides users with detailed, context-relevant responses. Their pedigree, steeped in expertise from former OpenAI members, lends them a unique edge.

Lastly, Midjourney, headquartered in San Francisco, is gaining traction as a generative AI image generator. Although the specifics about their funding remain undisclosed, their remarkable growth trajectory, as evidenced by a 5800% surge in search growth over five years, is hard to overlook. The platform has garnered over 15 million users, all weaving artistic tapestries using its robust features.

Despite being a subset of the broader AI sector, investment in generative AI has surged, reaching a staggering $12 billion within the first five months of 2023 alone. From providing enriched communication channels to fostering unmatched creativity, its essence lies in reshaping and augmenting human experiences.

The verve with which giants like Amazon, Microsoft, and Google are advancing in this domain testifies to its strategic importance. Yet, it's not just about monetary investment or market share. Generative AI's prowess is its influence, be it in shaping investor sentiments, redefining digital landscapes, or altering our very expectations from technology.

However, a pivotal question lingers: Will Big Tech's dominance stifle or stimulate the generative AI sector? While their immense resources can accelerate AI research and applications, the potential for monopolistic control is undeniable.

Notably, the rise of emerging stars in the AI realm, such as Hugging Face and Stability AI, offers a glimmer of hope. Their success stories affirm that innovation, community-driven development, and a clear vision can pave the way for success even amidst giants.

While Big Tech's involvement can catalyze advancements, maintaining a diversified AI ecosystem where startups and innovators can thrive is essential for sustainable growth.

Excerpt from:

Big Tech and Generative AI: Will Big Tech Control Generative AI? - Unite.AI