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  • Instagram is readying a Twitter-like service

    Instagram is readying a Twitter-like service

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    Embattled Twitter may soon have a serious rival: Facebook’s Instagram is planning to release a text-based app as a competitor.

    Instagram, a property of Meta Platforms Inc.
    META,
    -0.49%
    ,
    has been testing the service with creators, celebrities and influencers for months, according to people familiar with Meta’s strategy.

    “We’re exploring a standalone decentralized social network for sharing text updates. We believe there’s an opportunity for a separate space where creators and public figures can share timely updates about their interests,” a Meta spokesperson told MarketWatch.

    The app could debut as early as June, according to Lia Haberman, an adjunct professor at the University of California, Los Angeles, who teaches social and influencer marketing. She published a screenshot of an early description of the app, which may eventually be compatible with rival Twitter apps like Mastodon.

    Twitter has hemorrhaged users since Tesla Inc.
    TSLA,
    +1.84%

    Chief Executive Elon Musk began his chaotic leadership of the company late last year, prompting an exodus by disgruntled customers to alternative services like Mastodon and Bluesky.

    Jasmine Enberg, an analyst at Insider Intelligence, said the text-based service has been in the works for months alternately code-named P92 or Barcelona.

    “The big picture here is that there is clearly an appetite for Twitter-like services,” Enberg said in an interview. “With Twitter’s problems and so many alternatives, Meta’s new service looks like a mashup of Instagram and Twitter. Meta sees an opportunity to tap into this market, and it has a history of copying other popular apps [like Snap].”

    Meta’s stock was flat in Friday’s regular trading session.

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  • TikTok content creators file lawsuit against Montana over first-in-nation law banning app

    TikTok content creators file lawsuit against Montana over first-in-nation law banning app

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    HELENA, Mont. — Five TikTok content creators have filed a lawsuit seeking to overturn Montana’s first-in-the-nation ban on the video sharing app, arguing the law is an unconstitutional violation of free speech rights.

    The Montana residents also argued in a legal complaint, filed in federal court late Wednesday without public notice, that the state doesn’t have any authority over matters of national security.

    Republican Gov. Greg Gianforte signed the bill into law Wednesday and said it would protect Montana residents’ private data and personal information from being harvested by the Chinese government. The ban is scheduled to take effect on Jan. 1, 2024.

    “We expected a legal challenge and are fully prepared to defend the law,” said Emily Flower, spokeswoman for the Montana Department of Justice.

    TikTok has argued the law infringes on people’s First Amendment rights.

    However, spokesperson Brooke Oberwetter declined to comment on the lawsuit Thursday. She also declined to say whether the company helped coordinate the complaint.

    The creators are five Montana residents who use the video-sharing app for things like to promoting a business, connecting with military veterans, introducing others to ranch life, sharing outdoor adventures or expressing their sense of humor. Some of them make significant money from the app, the complaint states.

    The case could serve as a testing ground for the TikTok-free America many national lawmakers have envisioned. Cybersecurity experts say it could be difficult to enforce.

    The lawsuit — filed just hours after Gianforte signed the measure into law — states the ban would “immediately and permanently deprive Plaintiffs of their ability to express themselves and communicate with others.”

    “Montana can no more ban its residents from viewing or posting to TikTok than it could ban the Wall Street Journal because of who owns it or the ideas it publishes,” the plaintiffs’ attorneys wrote.

    Some lawmakers, the FBI and officials at other agencies are concerned the video-sharing app, owned by ByteDance, could be used to allow the Chinese government to access information on U.S. citizens or push pro-Beijing misinformation that could influence the public. TikTok says none of this has ever happened.

    A former executive at ByteDance alleges the tech giant has served as a “propaganda tool” for the Chinese government, a claim ByteDance says is baseless.

    China passed laws in 2014 and 2017 that compel companies to cooperate with the country’s government for state intelligence work. TikTok says it has never been asked to hand over its data and it wouldn’t do so if asked.

    “TikTok is spying on Americans. Period,” Montana Attorney General Austin Knudsen told a legislative committee in March. “TikTok is a tool of the Chinese Communist Party. It is owned by a Chinese company, and under China law, if you are based in China, you will cooperate with the Chinese Communist Party. Period.”

    More than half the U.S. states, including Montana, and the federal government have banned TikTok from government-owned devices.

    Montana’s law would prohibit downloads of TikTok in the state and would fine any “entity” — an app store or TikTok — $10,000 per day for each time someone “is offered the ability” to access the social media platform or download the app. The penalties would not apply to users.

    Opponents say Montana residents could easily circumvent the ban by using a virtual private network, a service that shields internet users by encrypting their data traffic, preventing others from observing their web browsing. Montana state officials say geofencing technology is used with online sports gambling apps, which are deactivated in states where online gambling is illegal.

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  • Montana becomes 1st state to enact ban on TikTok; law likely to be challenged

    Montana becomes 1st state to enact ban on TikTok; law likely to be challenged

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    HELENA, Mont. — Montana became the first state in the U.S. to enact a complete ban on TikTok on Wednesday when Republican Gov. Greg Gianforte signed a measure that’s more sweeping than any other state’s attempts to curtail the social media app, which is owned by a Chinese tech company.

    The measure, which is scheduled to take effect on Jan. 1, 2024, is expected to be challenged legally and will serve as a testing ground for the TikTok-free America that many national lawmakers have envisioned.

    “Today, Montana takes the most decisive action of any state to protect Montanans’ private data and sensitive personal information from being harvested by the Chinese Communist Party,” Gianforte said in a statement.

    TikTok spokesperson Brooke Oberwetter argued that the law infringes on people’s First Amendment rights and is unlawful. She declined to say whether the company will file a lawsuit.

    “We want to reassure Montanans that they can continue using TikTok to express themselves, earn a living, and find community as we continue working to defend the rights of our users inside and outside of Montana,” Oberwetter said in a statement.

    Keegan Medrano, policy director for the ACLU of Montana, said the Legislature “trampled on the free speech of hundreds of thousands of Montanans who use the app to express themselves, gather information and run their small business in the name of anti-Chinese sentiment.”

    Some lawmakers, the FBI and officials at other agencies are concerned the video-sharing app, owned by ByteDance, could be used to allow the Chinese government to access information on American citizens or push pro-Beijing misinformation that could influence the public. TikTok says none of this has ever happened.

    When Montana banned the app on government-owned devices in late December, Gianforte said TikTok posed a “significant risk” to sensitive state data. More than half of U.S. states and the federal government have a similar ban.

    On Wednesday, Gianforte also announced he was prohibiting the use of all social media applications tied to foreign adversaries on state equipment and for state businesses in Montana effective on June 1. Among the apps he listed are WeChat, whose parent company is headquartered in China; and Telegram Messenger, which was founded in Russia.

    The legislation, drafted by the attorney general’s office, easily passed through Montana’s GOP-controlled Legislature.

    Gianforte had wanted to expand the TikTok bill to include apps tied to foreign adversaries, but the legislature did not send the bill to him until after the session ended, preventing him from offering any amendments.

    Montana’s new law prohibits downloads of TikTok in the state and would fine any “entity” — an app store or TikTok — $10,000 per day for each time someone “is offered the ability” to access the social media platform or download the app. The penalties would not apply to users.

    Opponents consider the measure to be government overreach and say Montana residents could easily circumvent the ban by using a virtual private network, a service that shields internet users by encrypting their data traffic, preventing others from observing their web browsing. Montana state officials say geofencing technology is used with online sports gambling apps, which are deactivated in states where online gambling is illegal.

    TikTok, which has said it has a plan to protect U.S. users, has vowed to fight back against the ban, along with small business owners who said they use the app for advertising to help grow their businesses and reach more customers.

    The app’s fun, goofy videos and ease of use has made it immensely popular, and U.S. tech giants like Snapchat and Meta, the parent company of Facebook and Instagram, see it as a competitive threat.

    Though many lawmakers in Montana have been enthusiastic about a ban, experts who followed the bill closely said the state will likely have to defend the legislation in court.

    NetChoice, a trade group that counts Google and TikTok as its members, called the bill unconstitutional.

    “This is a clear violation of the Constitution, which prohibits the government from blocking Americans from accessing constitutionally-protected speech online via websites or apps,” Carl Szabo, who serves as the group’s vice president and general counsel, said in a statement.

    Officials are also bound to receive criticism from advocacy groups and TikTok users who don’t want their favorite app to be taken away. TikTok has been recruiting so-called influencers and small businesses who use the platform to push back on a ban. But others who haven’t been part of an official campaign coordinated by the company are also worried about what lawmakers are doing.

    Adam Botkin, a former football player and recent graduate at the University of Montana, said it was a scary time for him as a content creator in Montana. The 22-year-old has nearly 170,000 followers on TikTok, where he mostly posts short videos of himself performing football kicks.

    He says he sometimes makes “tens of thousands” of dollars per month from brands looking to market their products on his social media accounts, including Instagram, where he has roughly 44,000 followers.

    Botkin says most of his income comes from Instagram, which is believed to be more lucrative for content creators. But he has to grow his following on that platform — and others — to have the same level of popularity that he does on TikTok. He says he’s trying to do that, and won’t try to circumvent the TikTok ban by using a VPN.

    “You got to adapt and evolve with how things move,” Botkin said. “So, if I have to adapt and move, I’ll adapt.”

    Chatter about a TikTok ban has been around since 2020, when then-President Donald Trump attempted to bar the company from operating in the U.S. through an executive order that was halted in federal courts. President Joe Biden’s administration initially shelved those plans, but more recently threatened to ban the app if the company’s Chinese owners don’t sell their stakes.

    TikTok doesn’t want either option and has been clamoring to prove it’s free of any Chinese government interference. It’s also touting a data safety plan it calls “Project Texas” to assuage bipartisan concerns in Washington.

    At the same time, some lawmakers have emerged as allies, arguing efforts to restrict data harvesting practices need to include all social media companies, not just one. Republican Sen. Rand Paul of Kentucky blocked a bill in March that would ban TikTok nationally, saying such a move would violate the Constitution and anger the millions of voters who use the app.

    Montana’s TikTok ban also comes amid a growing movement to limit social media use among kids and teens and, in some cases, impose bans. Several bills circulating in Congress aim to get at the issue, including one that would prohibit all children under the age of 13 from using social media and require permission from a guardian for users under 18 to create an account.

    Some states, like Utah and Arkansas, have already enacted laws that would hinge social media use on parental consent and similar bills are in the works in other states. Last year, California enacted a law that would require companies to beef up data protection practices for children and offer them the highest privacy settings.

    ___

    Hadero reported from New York.

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  • 20 AI stocks expected to post the highest compound annual sales growth through 2025

    20 AI stocks expected to post the highest compound annual sales growth through 2025

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    Things move quickly in the world of artificial intelligence. It is easy to sit back and complain about developments that could be disruptive, but sometimes investors are best served by putting emotions aside and observing new developments and how they affect markets. Could AI developments and related trends make you a lot of money?

    Below is a new screen showing a group of AI-oriented companies expected to increase their sales most rapidly through 2025, based on consensus estimates among analysts polled by FactSet. Then we show expected revenue growth rates for the largest AI-oriented companies in the screen.

    Over the long haul, many businesses might perform more efficiently by employing AI. Maybe this technology can create an economic revolution similar to the one that moved the majority of the working population away from agricultural labor during the 19th and 20th centuries.

    Back in February, we screened 96 stocks held by five exchange-traded funds focused on AI and related industries and listed the 20 that analysts thought would rise the most over the following 12 months.

    Three months is a long time for AI, and the shakeout hasn’t even started.

    Read: Congress and tech seem open to regulating AI efforts, but that doesn’t mean it will happen

    There is no way to predict how politicians will react to perceived or real threats of AI and machine learning. And the largest U.S. tech players are doing everything they can to employ the new technology and remain dominant. But that doesn’t mean they will grow more quickly than smaller AI-focused players.

    A new AI stock screen

    Once again we will begin a screen with these five ETFs:

    • The Global X Robotics & Artificial Intelligence ETF
      BOTZ,
      +0.97%

      BOTZ was established 2016 and has $1.8 billion in assets under management. The fund tracks an index of companies listed in developed markets that are expected to benefit from the increased utilization of robotics and AI. There are 44 stocks in the BOTZ portfolio, which is weighted by market capitalization and rebalanced once a year. Its largest holding is Intuitive Surgical Inc.
      ISRG,
      +0.53%
      ,
      which makes up 10% of the portfolio, followed by Nvidia Corp.
      NVDA,
      +3.30%

      at 9.4%.

    • The iShares Robotics and Artificial Intelligence Multisector ETF
      IRBO,
      +1.64%

      holds 116 stocks that are equal-weighted, as it tracks a global index of companies that derive at east 50% of revenue from robotics or AI, or have significant exposure to related industries. This ETF was launched in 2018 and has $304 million in assets.

    • The $246 million First Trust Nasdaq Artificial Intelligence & Robotics ETF
      ROBT,
      +1.83%

      has 107 stocks in its portfolio, with a modified weighting based on how directly companies are involved in AI or robotics. It was established in 2018.

    • The Robo Global Artificial Intelligence ETF
      THNQ,
      +1.81%

      has $26 million in assets and was established in 2020. I holds 69 stocks and isn’t concentrated. It uses a scoring system to weight its holdings by percentage of revenue derived from AI, with holdings also subject to minimum market capitalization and liquidity requirements.

    • The newest ETF on this list is the WisdomTree Artificial Intelligence and Innovation Fund
      WTAI,
      +2.42%
      ,
      which was established in December and has $13 million in assets and holds 73 stocks in an equal-weighted portfolio. According to FactSet, stocks are handpicked and selected companies “generate at least 50% of their revenue from AI and innovation activities, including those related to software, semiconductors, hardware technology, machine learning and innovative products.”

    Altogether and removing duplicates, the five ETFs hold 270 stocks of companies in 23 countries. We first narrowed the list to 197 covered by at least nine analysts and for which consensus sales estimates are available through calendar 2025. We used calendar-year estimates because some companies have fiscal years that don’t match the calendar.

    Here are the 20 screened AI-related companies expected by analysts to have the highest compound annual growth rates (CAGR) for sales from 2023 through 2025. Sales estimates are in millions of U.S. dollars. The list also shows which of the above five ETFs holds each stocks.

    Company

    Ticker

    Estimated sales – 2023 ($mil)

    Estimated sales – 2024 ($mil)

    Estimated sales – 2025 ($mil)

    Two-year estimated sales CAGR through 2025

    Held by

    BioXcel Therapeutics Inc.

    BTAI,
    -2.47%
    $5

    $39

    $121

    411.5%

    WTAI

    Luminar Technologies Inc. Class A

    LAZR,
    +8.82%
    $86

    $266

    $588

    161.0%

    ROBT, WTAI

    BlackBerry Ltd.

    BB,
    +6.01%
    $685

    $769

    $1,925

    67.6%

    ROBT

    Credo Technology Group Holding Ltd.

    CRDO,
    +10.29%
    $183

    $259

    $363

    40.9%

    IRBO

    SentinelOne Inc. Class A

    S,
    +1.05%
    $619

    $881

    $1,176

    37.9%

    WTAI

    Wolfspeed Inc.

    WOLF,
    +5.02%
    $982

    $1,323

    $1,860

    37.6%

    WTAI

    SK hynix Inc.

    000660,
    +1.66%
    $18,319

    $27,899

    $34,542

    37.3%

    WTAI

    Mobileye Global Inc. Class A

    MBLY,
    +1.67%
    $2,109

    $2,782

    $3,920

    36.3%

    ROBT, WTAI

    Snowflake Inc. Class A

    SNOW,
    +1.42%
    $2,811

    $3,863

    $5,139

    35.2%

    IRBO, THNQ, WTAI

    Lemonade Inc.

    LMND,
    +8.08%
    $395

    $471

    $712

    34.2%

    THNQ, WTAI

    Nio Inc. ADR Class A

    NIO,
    +1.39%
    $11,874

    $16,733

    $21,304

    33.9%

    ROBT

    Stem Inc.

    STEM,
    +4.88%
    $607

    $833

    $1,055

    31.8%

    WTAI

    Upstart Holdings Inc.

    UPST,
    +10.37%
    $547

    $768

    $938

    31.0%

    BOTZ, WTAI

    Cloudflare Inc. Class A

    NET,
    +5.84%
    $1,284

    $1,669

    $2,194

    30.7%

    THNQ

    Samsara Inc. Class A

    IOT,
    +1.42%
    $830

    $1,062

    $1,364

    28.2%

    THNQ

    Ambarella Inc.

    AMBA,
    +3.45%
    $287

    $355

    $472

    28.2%

    IRBO, ROBT, THNQ, WTAI

    iflytek Co. Ltd. Class A

    002230,
    -1.34%
    $3,561

    $4,582

    $5,851

    28.2%

    THNQ

    Tesla Inc.

    TSLA,
    +4.41%
    $99,558

    $128,412

    $161,061

    27.2%

    ROBT, THNQ, WTAI

    CrowdStrike Holdings Inc. Class A

    CRWD,
    +2.40%
    $2,935

    $3,793

    $4,739

    27.1%

    THNQ, WTAI

    PB Fintech Ltd.

    543390,
    +1.39%
    $358

    $462

    $573

    26.5%

    IRBO

    Source: FactSet

    Click the tickers for more about each company or ETF.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote pages.

    We have screened for expected revenue growth, rather than for earnings or cash flow, because in a newer tech-oriented business area, investors are most likely to consider the top line as companies sacrifice profits to build market share.

    It is important to do your own research if you consider purchasing any individual stock, to form your own opinion about a company’s ability to remain competitive over the long term. Starting from the top of the list, BioXcel Therapeutics Inc.
    BTAI,
    -2.47%

    is expected to show exponential sales growth, but that is from a low expected baseline this year.

    What about the largest AI-related companies held by these ETFs?

    Here are the largest 20 companies in the screen by market capitalization, ranked by expected sales CAGR from 2022 through 2025. Once again the sales estimates are in millions of U.S. dollars, but the market caps are in billions.

    Company

    Ticker

    Estimated sales – 2023 ($mil)

    Estimated sales – 2024 ($mil)

    Estimated sales – 2025 $mil)

    Two-year estimated sales CAGR through 2025

    Market Cap ($bil)

    Held by

    Tesla Inc.

    TSLA,
    +4.41%
    $99,558

    $128,412

    $161,061

    27.2%

    $528

    ROBT, THNQ, WTAI

    Nvidia Corp.

    NVDA,
    +3.30%
    $29,839

    $36,877

    $46,154

    24.4%

    $722

    BOTZ, IRBO, ROBT, THNQ, WTAI

    Taiwan Semiconductor Manufacturing Co. Ltd. ADR

    TSM,
    +5.83%
    $71,434

    $86,284

    $101,112

    19.0%

    $445

    ROBT, WTAI

    Advanced Micro Devices Inc.

    AMD,
    +2.23%
    $22,976

    $26,823

    $30,359

    15.0%

    $163

    IRBO, ROBT, THNQ, WTAI

    ASML Holding NV ADR

    ASML,
    +2.83%
    $28,974

    $32,374

    $37,796

    14.2%

    $263

    THNQ, WTAI

    Microsoft Corp.

    MSFT,
    +0.95%
    $223,438

    $251,028

    $282,397

    12.4%

    $2,318

    IRBO, ROBT, THNQ, WTAI

    Samsung Electronics Co. Ltd.

    005930,
    -0.61%
    $200,595

    $227,286

    $252,129

    12.1%

    $292

    IRBO, WTAI

    Amazon.com Inc.

    AMZN,
    +1.85%
    $559,438

    $626,549

    $702,395

    12.1%

    $1,164

    IRBO, ROBT, THNQ, WTAI

    Adobe Inc.

    ADBE,
    +3.34%
    $19,470

    $21,784

    $24,276

    11.7%

    $158

    IRBO, THNQ

    Netflix Inc.

    NFLX,
    +1.86%
    $33,915

    $38,067

    $42,275

    11.6%

    $148

    IRBO, THNQ

    Tencent Holdings Ltd.

    700,
    -0.58%
    $88,727

    $99,212

    $110,556

    11.6%

    $422

    IRBO, ROBT

    Salesforce Inc.

    CRM,
    +2.37%
    $34,392

    $38,273

    $42,786

    11.5%

    $205

    IRBO, THNQ

    Alphabet Inc. Class A

    GOOGL,
    +1.11%
    $299,810

    $333,077

    $369,195

    11.0%

    $710

    IRBO, ROBT, THNQ, WTAI

    Intel Corp.

    INTC,
    -1.20%
    $51,060

    $57,799

    $62,675

    10.8%

    $122

    IRBO, ROBT

    Meta Platforms Inc. Class A

    META,
    +1.53%
    $125,901

    $139,545

    $154,259

    10.7%

    $528

    IRBO, WTAI

    Alibaba Group Holding Ltd. ADR

    BABA,
    +2.17%
    $134,140

    $148,206

    $162,199

    10.0%

    $235

    ROBT, THNQ

    Texas Instruments Inc.

    TXN,
    +1.20%
    $17,941

    $19,433

    $20,799

    7.7%

    $148

    IRBO

    Apple Inc.

    AAPL,
    +0.36%
    $390,845

    $416,761

    $445,956

    6.8%

    $2,706

    IRBO, WTAI

    Siemens Aktiengesellschaft

    SIE,
    +2.55%
    $84,681

    $89,145

    $93,925

    5.3%

    $130

    ROBT

    Johnson & Johnson

    JNJ,
    -0.20%
    $98,761

    $100,990

    $103,870

    2.6%

    $414

    ROBT

    Source: FactSet

    Tech-stock picks that are small and focused: This fund invests in unsung innovators. Here are 2 top choices.

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  • Looks Like Steam Now Has Timed Demos, Dead Space Up First

    Looks Like Steam Now Has Timed Demos, Dead Space Up First

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    Image: Valve

    The ability to try before you buy has been a thorn in gaming retail’s side for generations. From the demo discs of old to the subscription models of today, publishers and shopfronts have had to wrestle with the idea that a lot of people only want to spend money on games they’ll enjoy.

    Whether that’s right or not, I don’t have the bandwidth for today—the idea that you could get a refund for a bad movie is laughable, but then, movies don’t cost $70, and what even is a “bad” game anyway?—but regardless, I’ve always been fascinated by the systems and processes companies have tried over the years to help sell their games.

    Like this! Steam has long been a battleground for this kind of stuff. You’ve long been able to download demos on Steam if the studio/publisher wanted it, and free weekends have also been here for ages, but for a while now the accepted practice on the platform has been buy a game, play it for a bit and if you don’t like it within the first two hours, you can just refund it and get your money back.

    That’s not an ideal scenario for anyone. Games are big downloads these days, and companies are actually losing money on processing fees every time you have to refund a transaction. So Valve looks to have thought of something new: a demo, only you get to play the full game, only you get a very limited amount of time to actually play it.

    Dead Space is the first to offer the “Timed Trial” feature—which is baked into Steam itself, so surely it’s more than a one-off—and you can see how it works below:

    Image for article titled Looks Like Steam Now Has Timed Demos, Dead Space Up First

    Image: Valve

    Is 90 minutes enough time to really get a handle on a game? I don’t know! It’s a figure that sits below the point you used to be able to request a refund on, but also sits a few hours back from the point where some games start getting good, so who knows how useful this could be.

    I’ve asked Valve if other games are going to be implementing this soon, and if so if their time limits can be adjusted by publishers/studios.

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    Luke Plunkett

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  • SaaS vs. Custom Software — Which Is Best for Your Business? | Entrepreneur

    SaaS vs. Custom Software — Which Is Best for Your Business? | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The global SaaS market is estimated to reach $702.19 billion by 2030. It is undoubtedly a growing market that proves its benefits. Nonetheless, there are companies — and actually, entire industries — that are still reluctant when it comes to adopting a SaaS solution. Bespoke (or custom) developments have been believed to be the safest bet, but is it the case anymore?

    As a proptech company offering a SaaS product that digitalizes the real estate industry, we’ve seen both enthusiasm and skepticism regarding this business model, so I decided to get into more detail about the advantages and disadvantages of both SaaS and bespoke technologies.

    Related: 4 Ways SaaS Can Make Entrepreneurs More Efficient and Competitive

    Advantages of SaaS

    Efforts and budgets associated with SaaS product upgrades are lower, as providers grow continuously based on “community intelligence.” The product or service goes through constant improvement based on feedback and suggestions from multiple users that might have faced the same problem as you. This transforms SaaS products into live organisms that are very flexible and dynamic.

    Staying on the cost topic, it’s important to mention that SaaS acquisition is financially more productive, as the cost belongs to the OpEx category (short-term costs), whereas custom developments usually go under the CapEx category (long-term investments).

    Using a SaaS solution equals faster deployment, and it is the way to go for agile processes. Companies with a testing mentality will see the advantage in starting to use a new product and measure its impact sooner rather than later. Being an early adopter that understands the dynamic environment and changing needs of stakeholders puts a company on the fast track to success.

    It’s also worth noting that a SaaS service or product is often modular, which means that you can opt and test for parts of it that help you the most in your processes. Providers will even have multiple offerings, based on your needs, usage or company size.

    Disadvantages of SaaS

    According to McKinsey research, most large companies don’t trust SaaS providers with their security keys and prefer to hold them on-premises. But on-premise tends to become less and less an optimal solution, leaving room for private cloud, which can also be offered by SaaS companies.

    It seems like the main disadvantages that most potential clients see are related to security and ownership. Many perceive a SaaS as an external solution that isn’t as trustworthy as something they develop according to their own specific needs and not as an enhancement to their own capabilities.

    Another disadvantage of SaaS is that customization isn’t as on-point as with bespoke solutions. Some SaaS solutions do offer a certain level of customization but not to the degree that it will perfectly reflect a company’s brand, identity and values.

    SaaS solutions come with challenges on the legal side as well. Companies adopting a SaaS product most frequently have to accept that any potential legal action will have to fall under the SaaS provider’s national law and not their own.

    Related: What Makes SaaS the Go-to Option to Build a Digital Ecosystem?

    Advantages of custom development

    Probably one of the biggest advantages of custom software is that you get exactly what you want and need, you own the IP, and there are fewer security risks.

    You get to digitalize exactly the processes you want to, with little disruption among your team. This does require a company to deeply understand current and potential upcoming challenges and opportunities in the market and respond to them through state-of-the-art solutions.

    Custom-developed software could be the way to go when looking to optimize a very specific process that you know and that doesn’t change too often.

    Disadvantages of custom solutions

    Building your own custom solution takes time and considerate budgets. Research shows that “less than 10% of developers can deliver a typical software solution with basic features in less than 2 months,” not to mention the cost of failure, which “typically affects 30% to 70% of enterprise development projects.”

    Once you do have it — probably later rather than sooner — the needs of the organizations might have changed, putting you in a situation where you’ve spent a lot of time and money on a product that no one will use (it is said that “most people use only 10% of a product feature at best,” a concerning percentage for a bespoke development).

    Furthermore, one of the advantages of custom solutions — building something specifically addressing your needs — can quickly become a disadvantage if that need hasn’t been properly mapped or if it tries to solve too many specific problems for too many people.

    Building a product without having as much market knowledge as a SaaS company comes with other challenges as well: It’s not that flexible and dynamic, it can block your agility, and you have to pay for each and every update — not to mention that there is a high possibility that the team that developed the custom solution will change, which means there will be a learning curve for any new developer who has to maintain and update the bespoke solution.

    Related: Before Investing in Custom Software, Answer These 4 Questions

    A change of mentality

    Custom-built software can very well complement SaaS software, bringing that element of deep personalization. By integrating them, one can get the best of both worlds: agile, state-of-the-art technology and custom, identity-based solutions for their highly specific needs.

    It is only fair for each company to want to stand out, but we need a shift in perspective: Stop praising custom developments for the sake of ownership. After all, it’s not owning your own software that will send you to the top but rather your understanding of how you can best meet your clients’ expectations. SaaS solutions are the fuel that accelerates your rapid growth.

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    Bogdan Nicoara

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  • Tech-stock picks that are small and focused: This fund invests in unsung innovators. Here are 2 top choices.

    Tech-stock picks that are small and focused: This fund invests in unsung innovators. Here are 2 top choices.

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    When investors think of technology stocks, they might automatically gravitate toward “the next big thing,” or to the giant companies that dominate the S&P 500
    SPX,
    -0.40%
    .
    But Robert Stimson, chief investment officer of Oak Associates Funds, makes a case for diversification through exposure to smaller innovators which he believes are “overlooked in this environment.”

    The River Oak Discovery Fund
    RIVSX,
    +0.98%

    invests in tech-oriented companies with market capitalizations of $5 billion or less, with an average of about $2 billion. It has a five-star rating, the highest, from Morningstar, despite having what the investment information firm considers “above average” annual expenses of 1.19% of assets under management. The fund is ranked in the 6th percentile among 546 funds in Morningstar’s “Small Blend” category for five-year performance and in the 13th percentile among 374 funds for 10-year performance. The performance comparisons are net of expenses.

    The Black Oak Emerging Technologies Fund
    BOGSX,
    +1.54%

    has more of a midcap focus, with some small-cap stocks and follows a similar strategy to that of RIVSX. But with no restriction on the size of companies this fund invests in, “we don’t have to sell stocks,” Stimpson said. So long-term holdings of this fund include Apple Inc.
    AAPL,
    -0.05%

    and Salesforce.com Inc.
    CRM,
    +0.69%
    .
    This fund is rated three stars within Morningstar’s “Technology” category and has a lower expense ratio of 1.03%.

    Both funds are concentrated. The River Oak Discovery Fund held 34 stocks and the Black Oak Emerging Technologies Fund held 35 stocks as of March 31. Lists of both funds’ largest holdings are below.

    During an Interview, Stimpson, who co-manages both funds, said that when investing in the small-cap technology space, he and colleagues identify companies that are “focused on niches.

    “I want a company that knows who they are, what they do and do it well, rather than a small company trying to growing into the next Microsoft, Google or Salesforce,” he said.

    More about giant companies dominating stock indexes: This twist on a traditional S&P 500 stock fund can lower your risk and still beat the market overall

    Stimpson said Oak Associates pays close attention to what corporate management teams say during earnings calls and in presentations, preferring comments related to improving sales and operations with a market niche, rather than expressions of grand visions for exponential growth.

    That type of narrow focus can support higher valuations over time, Stimpson said. “They have better execution, a better ability to fend-off competition and they are quality acquisition candidates.”

    “I caution everyone that until there is revenue, earnings and a product, the hype can be more dangerous than an opportunity.”


    — Robert Stimpson, chief investment officer at Oak Funds, when discussing AI and ChatGPT.

    All of those factors can be important to investors, considering how easily tech giants such as Microsoft Corp.
    MSFT,
    +1.00%

    or Google holding company Alphabet Inc.
    GOOGL,
    +2.89%

    GOOG,
    +2.88%

    can begin to compete with smaller innovative companies because they can afford to make such large investments, he said.

    Simpson went further, saying that when running screens for “quality” metrics, such as improving free cash flow yields, the Oak Associates team also looks for “shareholder friendly practices.” For example, a company may be repurchasing shares. But are the buybacks lowering the share count significantly (which boosts earnings per share) or are they merely mitigating the dilution caused by the shoveling of new shares to executives as part of their compensation?

    Finally, Simpson cautioned investors not to get caught up in tech-focused hype.

    “When I talk to our clients, I get questions about AI and ChatGPT and how to play it. People get focused on a new great tech innovation,” he said. “You can replace ChatGPT with bitcoin, metaverse or 3-D printing.”

    “I caution everyone that until there is revenue, earnings and a product, the hype can be more dangerous than an opportunity.”

    Two examples

    These companies are held by theRiver Oak Discovery Fund and the Black Oak Emerging Technologies Fund.

    Cirrus Logic Inc.
    CRUS,
    -2.37%

    is the largest holding of the River Oak Discovery Fund. Stimpson calls the company “a derivative play on the success of Apple.”

    “They are focused on the chips that go into mobile and [vehicles],” as well as the needs of their customers, including Apple, “rather than problem areas of the chip sector, such as memory or PCs. They are not talking about chips for AI, for example,” Stimpson said.

    Cirrus focuses on systems and related software used in audio systems..

    Kulicke & Soffa Industries Inc.
    KLIC,
    +1.92%

    makes equipment, tools and related software used by a variety of manufacturers of computer chips and integrated electronic devices.

    Stimpson likes the company as a long-term play on the worldwide disruption in semiconductor manufacturing and supply, in the wake of the Covid-19 pandemic. “All chip companies learned that any supply disruption in Southeast Asia is a problem. Over time, the opportunities for semiconductor equipment makers are very good. There will be more plants in more locations, so more equipment,” he said.

    He said KLICK was in a “protected” position, with returns on equity of about 20% and free cash flow yields of about 10%.

    Top holdings of the funds

    Here are the largest 10 holdings of the River Oak Discovery Fund as of March 31:

    Company

    Ticker

    % of portfolio

    Cirrus Logic Inc.

    CRUS,
    -2.37%
    4.9%

    Kulicke & Soffa Industries Inc.

    KLIC,
    +1.92%
    4.6%

    Advanced Energy Industries Inc.

    AEIS,
    +0.30%
    4.5%

    Cohu Inc.

    COHU,
    +1.45%
    3.7%

    Asbury Automotive Group Inc.

    ABG,
    -1.75%
    3.7%

    Korn Ferry

    KFY,
    -0.96%
    3.6%

    Kforce Inc.

    KFRC,
    -2.40%
    3.4%

    Ambarella Inc.

    AMBA,
    -0.50%
    3.3%

    Applied Industrial Technologies Inc.

    AIT,
    -1.71%
    3.3%

    Perficient Inc.

    PRFT,
    +0.72%
    3.2%

    Click on the tickers for more about each company.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    Here are the largest 10 holdings of the Black Oak Emerging Technology Fund as of March 31:

    Company

    Ticker

    % of portfolio

    Apple Inc.

    AAPL,
    -0.05%
    5.7%

    KLA Corp.

    KLAC,
    +1.69%
    4.6%

    Advanced Energy Industries Inc.

    AEIS,
    +0.30%
    4.5%

    Cohu Inc.

    COHU,
    +1.45%
    4.1%

    SolarEdge Technologies Inc.

    SEDG,
    -3.76%
    3.9%

    Cirrus Logic Inc.

    CRUS,
    -2.37%
    3.9%

    Cohu Inc.

    COHU,
    +1.45%
    3.9%

    Ambarella Inc.

    AMBA,
    -0.50%
    3.4%

    Applied Industrial Technologies Inc.

    AIT,
    -1.71%
    3.4%

    Salesforce Inc.

    CRM,
    +0.69%
    3.3%

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  • Berkshire Bought Capital One, Unloaded 2 Banks

    Berkshire Bought Capital One, Unloaded 2 Banks

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    Berkshire Hathaway Sold U.S. Bancorp, Bank of New York Stock. Here’s What It Bought.

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  • Walmart, Alibaba, Target, and More Stocks to Watch This Week

    Walmart, Alibaba, Target, and More Stocks to Watch This Week

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    Walmart, Alibaba, Target, and More Stocks to Watch This Week

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  • How to Effectively Manage Your Remote Software Team | Entrepreneur

    How to Effectively Manage Your Remote Software Team | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    So, now you’re a manager.

    Chances are high that as a newly promoted manager of software engineers, you were recently in the trenches with your fellow coders. Management requires quite a different skill set than coding, but fear not, because you will still rely on things you learned as a developer. It can be tempting to fall back on coding and to want to fix problems yourself, but your job is no longer to fix the code. Your job is to create a self-sufficient team of coders who can problem-solve for themselves. One of the tools you will use is delegation.

    To delegate effectively, you should communicate expectations about responsibilities and give your team the support they need to succeed. Part of your job is to assess where your team needs to grow, who could benefit from being a mentor, where the team can expand technically and who has the bandwidth to take on new tasks. Check-in and give feedback without taking over so your team can grow their skills. Give a clear picture of how success looks, and celebrate when your team hits its goals.

    Related: How to Delegate Better and Become a Great Leader

    Leverage the skills you built as a developer

    New managers can succumb to the siren song of trying to do everything themselves. Unfortunately, this sets up your team to rely on you whenever there is a problem and doesn’t give them the experience they need to function autonomously. Taking the extra time to teach a solution instead of coding it yourself pays off in the long run by saving you from having to write that same code again. An added benefit is that you now have another developer to mentor others and spread knowledge across your team. Your job is to ensure the success of your team, not become a bottleneck that developers have to pass through to make a decision.

    Should you continue to code? In his book Managing Humans, Michael Lopp advises managers to stay in touch with their roots as developers. You should be familiar with the language and tools that your team is using and understand the detailed architecture of a project. The point is to stay connected as you delegate the day-to-day work of your team. Your years as a developer have taught you how projects succeed and how they fail. As a manager, you can leverage this valuable experience to guide your team. Listen to your gut, and look at the bigger picture. When you encounter a situation that you’ve seen before as a developer, ask the right questions to dig deep into how milestones can be met realistically.

    Build trust through preventive maintenance

    Preventive maintenance is key to fostering the trust needed for successful delegation. The time you spend upfront coaching your team is an investment. Foster a sense of safety, and reinforce the idea that mistakes are learning opportunities. Developers should be thanked, not punished, for being honest about not meeting a deadline or when a solution isn’t working.

    A great way to develop trust is to hold one-on-one meetings with every team member. Tips for one-on-one meetings:

    • Schedule at least 30 minutes

    • Don’t show up late or reschedule

    • Listen for more than a status report

    • Develop rapport

    • Ask about career goals

    • Coach team members on how to coach others

    Related: Why Entrepreneurs Struggle Delegating to Remote Teams

    All of this sounds great. But how do you do it remotely?

    Remote work is the new normal for many software engineers. Patrick Thibodeau recently reported that “nearly 40% of software engineers will only work remotely.” Developers report higher productivity and less stress when they work from home. Employers have the advantage of accessing a global talent pool and can cut down on the costs of renting and furnishing an office. Managing a software team is challenging enough. How do you build a team that spans across time zones and physical spaces?

    Rely on a common process

    Stand-up meetings, planning, backlog refinement and code reviews can be a challenge to run remotely. Find a range of hours across time zones when people will be available to work together to schedule meetings and record meetings for those unable to attend. A robust asynchronous onboarding process can help new team members understand the standard policies and expectations of a remote team.

    Delays in communication can be costly across time zones. For communication that happens asynchronously, take care to explain concepts clearly when you might not be immediately available to answer questions. Make sure that any resources your recipient will need have been attached or shared with appropriate permissions. Outline what constitutes an urgent message and when you expect a reply. Successful delegation relies on your team having the proper support to do their job.

    Use tools to connect

    The choices for remote communication have exploded over the past few years. Zoom, Google Meet and Microsoft Teams can be used for video conferencing and messaging. Slack is popular for its specific channels and direct messaging capabilities. Tools for version control and IDEs are crucial for software development. Common places for online calendars and document storage like Google give companies a place to organize shared knowledge. Using story cards or tasks in a project management software like Jira, Trello or Basecamp will give your team a place to see which tasks they’ve been delegated. Developers can ask questions, create checklists to document their process and understand the acceptance criteria for a task. Management software also helps the team to plan resources and meet deadlines.

    Related: The Step-By-Step Guide to Managing Remote Employees Effectively

    Create a community

    Remote workers can still be connected to one another. Ways to build community remotely could include:

    • Icebreakers or social time for the first few minutes of meetings

    • Virtual coffee meets or book clubs

    • Lunch and learn presentations

    • Dedicated channels on a messaging app for social topics, photos or fun facts about the team

    • Online game events

    • Completing a certification or taking a class together

    When managing people from different cultures, ensure that policies are inclusive. Take the time to learn about differences in communication styles that might affect how to elicit feedback or criticism. Making sure that every voice on your team can be heard builds trust and engagement and ensures that delegated tasks are understood by all members of the team.

    Delegation is challenging for software managers but especially for those managing a remote team. Every team benefits from building trust and clear expectations around delegated work. If you are managing a remote team, you can rely on processes and tools to collaborate and communicate effectively. Even if your team is spread across time zones or continents, you can lead successful software projects through thoughtful management and delegation.

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    Amandeep Singh

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  • Google is giving its dominant search engine an artificial-intelligence makeover

    Google is giving its dominant search engine an artificial-intelligence makeover

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    MOUNTAIN VIEW, Calif. — Google on Wednesday disclosed plans to infuse its dominant search engine with more advanced artificial-intelligence technology, a drive that’s in response to one of the biggest threats to its long-established position as the internet’s main gateway.

    The gradual shift in how Google’s search engine runs is rolling out three months after Microsoft’s Bing search engine started to tap into technology similar to that which powers the artificially intelligent chatbot ChatGPT, which has created one of Silicon Valley’s biggest buzzes since Apple released the first iPhone 16 years ago.

    Google, which is owned by Alphabet Inc., already has been testing its own conversational chatbot called Bard. That product, powered by technology called generative AI that also fuels ChatGPT, has only been available to people accepted from a waitlist. But Google announced Wednesday that Bard will be available to all comers in more than 180 countries and more languages beyond English.

    Bard’s multilingual expansion will begin with Japanese and Korean before adding about 40 more languages.

    Now Google is ready to test the AI waters with its search engine, which has been synonymous with finding things on the internet for the past 20 years and serves as the pillar of a digital advertising empire that generated more than $220 billion in revenue last year.

    “We are at an exciting inflection point,” Alphabet CEO Sundar Pichai told a packed developers conference in a speech peppered with one AI reference after another. “We are reimagining all our products, including search.”

    More AI technology will be coming to Google’s Gmail with a “Help Me Write” option that will produce lengthy replies to emails in seconds, and a tool for photos called “Magic Editor” that will automatically doctor pictures.

    The AI transition will begin cautiously with the search engine that serves as Google’s crown jewel.

    The deliberate approach reflects the balancing act that Google must negotiate as it tries to remain on the cutting edge while also preserving its reputation for delivering reliable search results — a mantle that could be undercut by artificial intelligence‘s penchant for fabricating information that sounds authoritative.

    The tendency to produce deceptively convincing answers to questions — a phenomenon euphemistically described as “hallucinations” — has already been cropping up during the early testing of Bard, which like ChatGPT, relies on still-evolving generative AI technology.

    Google will take its next AI steps through a newly formed search lab where people in the U.S. can join a waitlist to test how generative AI will be incorporated in search results. The tests also include the more traditional links to external websites where users can read more extensive information about queried topics. It may take several weeks before Google starts sending invitations to those accepted from the waitlist to test the AI-injected search engine.

    The AI results will be clearly tagged as an experimental form of technology and Google is pledging the AI-generated summaries will sound more factual than conversational — a distinct contrast from Bard and ChatGPT, which are programmed to convey more human-like personas. Google is building in guardrails that will prevent the AI baked into the search engine from responding to sensitive questions about health — such as, “Should I give Tylenol to a 3-year-old?” — and finance matters. In those instances, Google will continue to steer people to authoritative websites.

    Google isn’t predicting how long it will be before its search engine will include generative AI results for all comers. The Mountain View, California, company has been under intensifying pressure to demonstrate how its search engine will maintain its leadership since Microsoft began to load AI into Bing, which remains a distant second to Google.

    The potential threat caused Alphabet’s stock price to initially plunge, although it has recently bounced back to where it stood when Bing announced its AI plans to great fanfare. More recently, The New York Times reported Samsung is considering dropping Google as the default search engine on its widely used smartphones, raising the specter that Apple might adopt a similar tactic with the iPhone unless Google can show its search engine can evolve with what appears to be a forthcoming AI-driven revolution.

    Alphabet’s shares surged 4% Wednesday after Google’s wave of AI announcements to finish at $111.75, the highest closing price since Bing began melding with ChatGPT in early February.

    As it begins to ingrain AI in its search engine, Google is aiming to make Bard smarter by connecting with the next generation of a massive data set known as a “large language model,” or LLM, that fuels it. The LLM that Bard relies on is dubbed Pathways Language Model, or PaLM. The AI in Google’s search engine will draw upon the next-generation PaLM2 and another technology known as a Multitask Unified Model, or MUM.

    Although people will have to wait to see how Google’s search engine will deploy generative AI to find answers, a new tool soon be more broadly available to all users. Google is going to add a new filter called “Perspectives” that will focus on what people are saying online about whatever topic is entered into the search engine. The new feature will be placed along existing search filters for news, images and video.

    Besides using its annual tech showcase to tout its prowess in AI, Google also unveiled the first foldable smartphone in its Pixel line-up of gadgets. Google’s entry into a new type of smartphone design that allows users to deploy the device as a mini-tablet too comes nearly three years after Samsung — the leading maker of smartphones powered by Google’s Android software — introduced its first bendable model.

    Foldable phones so far have remained a niche market, largely because of prices ranging between $1,500 and $2,000. Last year, about 14 million foldable phones were sold worldwide, accounting for just 1% of overall smartphone shipments, according to the research firm International Data Corp.

    Google’s foldable Pixel phone will sell for $1,800 and begin shipping next month. It will unfold with a hinge and, of course, be packed with AI.

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  • Google is giving its dominant search engine an artificial-intelligence makeover

    Google is giving its dominant search engine an artificial-intelligence makeover

    [ad_1]

    MOUNTAIN VIEW, Calif. — Google on Wednesday disclosed plans to infuse its dominant search engine with more advanced artificial-intelligence technology, a drive that’s in response to one of the biggest threats to its long-established position as the internet’s main gateway.

    The gradual shift in how Google’s search engine runs is rolling out three months after Microsoft’s Bing search engine started to tap into technology similar to that which powers the artificially intelligent chatbot ChatGPT, which has created one of Silicon Valley’s biggest buzzes since Apple released the first iPhone 16 years ago.

    Google, which is owned by Alphabet Inc., already has been testing its own conversational chatbot called Bard. That product, powered by technology called generative AI that also fuels ChatGPT, has only been available to people accepted from a waitlist. But Google announced Wednesday that Bard will be available to all comers in more than 180 countries and more languages beyond English.

    Bard’s multilingual expansion will begin with Japanese and Korean before adding about 40 more languages.

    Now Google is ready to test the AI waters with its search engine, which has been synonymous with finding things on the internet for the past 20 years and serves as the pillar of a digital advertising empire that generated more than $220 billion in revenue last year.

    “We are at an exciting inflection point,” Alphabet CEO Sundar Pichai told a packed developers conference in a speech peppered with one AI reference after another. “We are reimagining all our products, including search.”

    More AI technology will be coming to Google’s Gmail with a “Help Me Write” option that will produce lengthy replies to emails in seconds, and a tool for photos called “Magic Editor” that will automatically doctor pictures.

    The AI transition will begin cautiously with the search engine that serves as Google’s crown jewel.

    The deliberate approach reflects the balancing act that Google must negotiate as it tries to remain on the cutting edge while also preserving its reputation for delivering reliable search results — a mantle that could be undercut by artificial intelligence‘s penchant for fabricating information that sounds authoritative.

    The tendency to produce deceptively convincing answers to questions — a phenomenon euphemistically described as “hallucinations” — has already been cropping up during the early testing of Bard, which like ChatGPT, relies on still-evolving generative AI technology.

    Google will take its next AI steps through a newly formed search lab where people in the U.S. can join a waitlist to test how generative AI will be incorporated in search results. The tests also include the more traditional links to external websites where users can read more extensive information about queried topics. It may take several weeks before Google starts sending invitations to those accepted from the waitlist to test the AI-injected search engine.

    The AI results will be clearly tagged as an experimental form of technology and Google is pledging the AI-generated summaries will sound more factual than conversational — a distinct contrast from Bard and ChatGPT, which are programmed to convey more human-like personas. Google is building in guardrails that will prevent the AI baked into the search engine from responding to sensitive questions about health — such as, “Should I give Tylenol to a 3-year-old?” — and finance matters. In those instances, Google will continue to steer people to authoritative websites.

    Google isn’t predicting how long it will be before its search engine will include generative AI results for all comers. The Mountain View, California, company has been under intensifying pressure to demonstrate how its search engine will maintain its leadership since Microsoft began to load AI into Bing, which remains a distant second to Google.

    The potential threat caused Alphabet’s stock price to initially plunge, although it has recently bounced back to where it stood when Bing announced its AI plans to great fanfare. More recently, The New York Times reported Samsung is considering dropping Google as the default search engine on its widely used smartphones, raising the specter that Apple might adopt a similar tactic with the iPhone unless Google can show its search engine can evolve with what appears to be a forthcoming AI-driven revolution.

    Alphabet’s shares surged 4% Wednesday after Google’s wave of AI announcements to finish at $111.75, the highest closing price since Bing began melding with ChatGPT in early February.

    As it begins to ingrain AI in its search engine, Google is aiming to make Bard smarter by connecting with the next generation of a massive data set known as a “large language model,” or LLM, that fuels it. The LLM that Bard relies on is dubbed Pathways Language Model, or PaLM. The AI in Google’s search engine will draw upon the next-generation PaLM2 and another technology known as a Multitask Unified Model, or MUM.

    Although people will have to wait to see how Google’s search engine will deploy generative AI to find answers, a new tool soon be more broadly available to all users. Google is going to add a new filter called “Perspectives” that will focus on what people are saying online about whatever topic is entered into the search engine. The new feature will be placed along existing search filters for news, images and video.

    Besides using its annual tech showcase to tout its prowess in AI, Google also unveiled the first foldable smartphone in its Pixel line-up of gadgets. Google’s entry into a new type of smartphone design that allows users to deploy the device as a mini-tablet too comes nearly three years after Samsung — the leading maker of smartphones powered by Google’s Android software — introduced its first bendable model.

    Foldable phones so far have remained a niche market, largely because of prices ranging between $1,500 and $2,000. Last year, about 14 million foldable phones were sold worldwide, accounting for just 1% of overall smartphone shipments, according to the research firm International Data Corp.

    Google’s foldable Pixel phone will sell for $1,800 and begin shipping next month. It will unfold with a hinge and, of course, be packed with AI.

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  • Hackers aim to find flaws in AI – with White House help

    Hackers aim to find flaws in AI – with White House help

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    No sooner did ChatGPT get unleashed than hackers started “jailbreaking” the artificial intelligence chatbot – trying to override its safeguards so it could blurt out something unhinged or obscene.

    But now its maker, OpenAI, and other major AI providers such as Google and Microsoft, are coordinating with the Biden administration to let thousands of hackers take a shot at testing the limits of their technology.

    Some of the things they’ll be looking to find: How can chatbots be manipulated to cause harm? Will they share the private information we confide in them to other users? And why do they assume a doctor is a man and a nurse is a woman?

    “This is why we need thousands of people,” said Rumman Chowdhury, lead coordinator of the mass hacking event planned for this summer’s DEF CON hacker convention in Las Vegas that’s expected to draw several thousand people. “We need a lot of people with a wide range of lived experiences, subject matter expertise and backgrounds hacking at these models and trying to find problems that can then go be fixed.”

    Anyone who’s tried ChatGPT, Microsoft’s Bing chatbot or Google’s Bard will have quickly learned that they have a tendency to fabricate information and confidently present it as fact. These systems, built on what’s known as large language models, also emulate the cultural biases they’ve learned from being trained upon huge troves of what people have written online.

    The idea of a mass hack caught the attention of U.S. government officials in March at the South by Southwest festival in Austin, Texas, where Sven Cattell, founder of DEF CON’s long-running AI Village, and Austin Carson, president of responsible AI nonprofit SeedAI, helped lead a workshop inviting community college students to hack an AI model.

    Carson said those conversations eventually blossomed into a proposal to test AI language models following the guidelines of the White House’s Blueprint for an AI Bill of Rights — a set of principles to limit the impacts of algorithmic bias, give users control over their data and ensure that automated systems are used safely and transparently.

    There’s already a community of users trying their best to trick chatbots and highlight their flaws. Some are official “red teams” authorized by the companies to “prompt attack” the AI models to discover their vulnerabilities. Many others are hobbyists showing off humorous or disturbing outputs on social media until they get banned for violating a product’s terms of service.

    “What happens now is kind of a scattershot approach where people find stuff, it goes viral on Twitter,” and then it may or may not get fixed if it’s egregious enough or the person calling attention to it is influential, Chowdhury said.

    In one example, known as the “grandma exploit,” users were able to get chatbots to tell them how to make a bomb — a request a commercial chatbot would normally decline — by asking it to pretend it was a grandmother telling a bedtime story about how to make a bomb.

    In another example, searching for Chowdhury using an early version of Microsoft’s Bing search engine chatbot — which is based on the same technology as ChatGPT but can pull real-time information from the internet — led to a profile that speculated Chowdhury “loves to buy new shoes every month” and made strange and gendered assertions about her physical appearance.

    Chowdhury helped introduce a method for rewarding the discovery of algorithmic bias to DEF CON’s AI Village in 2021 when she was the head of Twitter’s AI ethics team — a job that has since been eliminated upon Elon Musk’s October takeover of the company. Paying hackers a “bounty” if they uncover a security bug is commonplace in the cybersecurity industry — but it was a newer concept to researchers studying harmful AI bias.

    This year’s event will be at a much greater scale, and is the first to tackle the large language models that have attracted a surge of public interest and commercial investment since the release of ChatGPT late last year.

    Chowdhury, now the co-founder of AI accountability nonprofit Humane Intelligence, said it’s not just about finding flaws but about figuring out ways to fix them.

    “This is a direct pipeline to give feedback to companies,” she said. “It’s not like we’re just doing this hackathon and everybody’s going home. We’re going to be spending months after the exercise compiling a report, explaining common vulnerabilities, things that came up, patterns we saw.”

    Some of the details are still being negotiated, but companies that have agreed to provide their models for testing include OpenAI, Google, chipmaker Nvidia and startups Anthropic, Hugging Face and Stability AI. Building the platform for the testing is another startup called Scale AI, known for its work in assigning humans to help train AI models by labeling data.

    “As these foundation models become more and more widespread, it’s really critical that we do everything we can to ensure their safety,” said Scale CEO Alexandr Wang. “You can imagine somebody on one side of the world asking it some very sensitive or detailed questions, including some of their personal information. You don’t want any of that information leaking to any other user.”

    Other dangers Wang worries about are chatbots that give out “unbelievably bad medical advice” or other misinformation that can cause serious harm.

    Anthropic co-founder Jack Clark said the DEF CON event will hopefully be the start of a deeper commitment from AI developers to measure and evaluate the safety of the systems they are building.

    “Our basic view is that AI systems will need third-party assessments, both before deployment and after deployment. Red-teaming is one way that you can do that,” Clark said. “We need to get practice at figuring out how to do this. It hasn’t really been done before.”

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  • LinkedIn axes 716 jobs in fresh tech cuts, shuts China app

    LinkedIn axes 716 jobs in fresh tech cuts, shuts China app

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    Professional networking platform LinkedIn says it’s laying off more than 700 workers and shuttering its China jobs app

    LONDON — Professional networking platform LinkedIn says it’s laying off more than 700 workers and shuttering its China jobs app, in the latest round of tech industry downsizing.

    LinkedIn blamed “shifts in customer behavior and slower revenue growth” for the cuts, which it announced in a blogpost late Monday.

    Technology companies have resorted to recurring waves of layoffs over the past year, in new phenomenon to hit the industry that reverses more than a decade of mostly unbridled growth.

    LinkedIn, which is owned by Microsoft, indicated that the net number of job losses could be less than 500.

    As part of its strategic shakeup, LinkedIn said it would be “opening up more than 250 new roles” in parts of its operations team as well as new business and account management teams starting on May 15.

    LinkedIn said it will also shut down its local jobs app for China, InCareer, by August, citing “fierce competition and a challenging macroeconomic climate.”

    InCareer was launched in 2021 as a jobs board that didn’t include a social feed or or the ability to share posts or articles. It replaced the Chinese version of LinkedIn’s website, which the company closed as Beijing cracked down on the internet sector.

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  • Palantir Earnings Sent the Stock Soaring. Why Analysts Aren’t So Excited.

    Palantir Earnings Sent the Stock Soaring. Why Analysts Aren’t So Excited.

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    Palantir


    Technology’s earnings looked like they had something for everyone, as the data-analytics software company forecast its first profitable year and talked up its artificial-intelligence prospects. However, some Wall Street analysts are focused on slowing revenue growth as a reason to be wary of the stock. 

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  • Palantir stock roars more than 20% higher after second straight earnings surprise

    Palantir stock roars more than 20% higher after second straight earnings surprise

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    Palantir Technologies Inc. delivered a surprise profit for the second quarter in a row Monday, while also topping revenue expectations, sending shares more than 20% higher in after-hours trading.

    The software company reported first-quarter net income of $17 million, or 1 cent a share, whereas Palantir PLTR posted a loss of $101 million, or 5 cents a share, in the year-earlier quarter. Analysts tracked by FactSet were expecting a loss of a penny a share on a GAAP basis. The stock closed with a 4.7% gain at $7.76 in Monday’s…

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  • Kids and social media: Here are tips for concerned parents

    Kids and social media: Here are tips for concerned parents

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    When it comes to social media, families are seeking help.

    With ever-changing algorithms pushing content at children, parents are seeing their kids’ mental health suffer, even as platforms like TikTok and Instagram provide connections with friends. Some are questioning whether kids should be on social media at all, and if so, starting at what age.

    Lawmakers have taken notice. A bipartisan group of senators recently introduced legislation aiming to prohibit all children under the age of 13 from using social media. It would also require permission from a guardian for users under 18 to create an account. It is one of several proposals in Congress seeking to make the internet safer for children and teens.

    Meanwhile, on Wednesday the Federal Trade Commission said Facebook misled parents and failed to protect the privacy of children using its Messenger Kids app, including misrepresenting the access it provided to app developers to private user data. Now, the FTC is proposing sweeping changes to a privacy order it has with Facebook’s parent company Meta that would include prohibiting it from making money from data it collects on children.

    But making laws and regulating companies takes time. What are parents — and teens — supposed to do in the meantime? Here are some tips on staying safe, communicating and setting limits on social media — for kids as well as their parents.

    IS 17 THE NEW 13?

    There’s already, technically, a rule that prohibits kids under 13 from using platforms that advertise to them without parental consent: The Children’s Online Privacy Protection Act that went into effect in 2000 — before today’s teenagers were even born.

    The goal was to protect kids’ online privacy by requiring websites and online services to disclose clear privacy policies and get parents’ consent before gathering personal information on their kids, among other things. To comply, social media companies have generally banned kids under 13 from signing up for their services, although it’s been widely documented that kids sign up anyway, either with or without their parents’ permission.

    But times have changed, and online privacy is no longer the only concern when it comes to kids being online. There’s bullying, harassment, the risk of developing eating disorders, suicidal thoughts or worse.

    For years, there has been a push among parents, educators and tech experts to wait to give children phones — and access to social media — until they are older, such as the “Wait Until 8th” pledge that has parents sign a pledge not to give their kids a smartphone until the 8th grade, or about age 13 or 14. But neither social media companies nor the government have done anything concrete to increase the age limit.

    IF THE LAW WON’T BAN KIDS, SHOULD PARENTS?

    “There is not necessarily a magical age,” said Christine Elgersma, a social media expert at the nonprofit Common Sense Media. But, she added, “13 is probably not the best age for kids to get on social media.”

    The laws currently being proposed include blanket bans on the under-13 set when it comes to social media. The problem? There’s no easy way to verify a person’s age when they sign up for apps and online services. And the apps popular with teens today were created for adults first. Companies have added some safeguards over the years, Elgersma noted, but these are piecemeal changes, not fundamental rethinks of the services.

    “Developers need to start building apps with kids in mind,” she said.

    Some tech executives, celebrities such as Jennifer Garner and parents from all walks of life have resorted to banning their kids from social media altogether. While the decision is a personal one that depends on each child and parent, some experts say this could lead to isolating kids, who could be left out of activities and discussions with friends that take place on social media or chat services.

    Another hurdle — kids who have never been on social media may find themselves ill-equipped to navigate the platforms when they are suddenly allowed free rein the day they turn 18.

    TALK, TALK, TALK

    Start early, earlier than you think. Elgersma suggests that parents go through their own social media feeds with their children before they are old enough to be online and have open discussions on what they see. How would your child handle a situation where a friend of a friend asks them to send a photo? Or if they see an article that makes them so angry they just want to share it right away?

    For older kids, approach them with curiosity and interest.

    “If teens are giving you the grunts or the single word answers, sometimes asking about what their friends are doing or just not asking direct questions like, ‘What are you doing on Instagram?’ but rather, ‘Hey, I heard this influencer is really popular,’” she suggested. “And even if your kid rolled their eyes it could be a window.”

    Don’t say things like “Turn that thing off!” when your kid has been scrolling for a long time, says Jean Rogers, the director of the nonprofit Fairplay’s Screen Time Action Network.

    “That’s not respectful,” Rogers said. “It doesn’t respect that they have a whole life and a whole world in that device.”

    Instead, Rogers suggests asking them questions about what they do on their phone, and see what your child is willing to share.

    Kids are also likely to respond to parents and educators “pulling back the curtains” on social media and the sometimes insidious tools companies use to keep people online and engaged, Elgersma said. Watch a documentary like “The Social Dilemma” that explores algorithms, dark patterns and dopamine feedback cycles of social media. Or read up with them how Facebook and TikTok make money.

    “Kids love to be in the know about these things, and it will give them a sense of power,” she said.

    SETTING LIMITS

    Rogers says most parents have success with taking their kids’ phones overnight to limit their scrolling. Occasionally kids might try to sneak the phone back, but it’s a strategy that tends to work because kids need a break from the screen.

    “They need to an excuse with their peers to not be on their phone at night,” Rogers said. “They can blame their parents.”

    Parents may need their own limits on phone use. Rogers said it’s helpful to explain what you are doing when you do have a phone in hand around your child so they understand you are not aimlessly scrolling through sites like Instagram. Tell your child that you’re checking work email, looking up a recipe for dinner or paying a bill so they understand you’re not on there just for fun. Then tell them when you plan to put the phone down.

    YOU CAN’T DO IT ALONE

    Parents should also realize that it’s not a fair fight. Social media apps like Instagram are designed to be addictive, says Roxana Marachi, a professor of education at San Jose State University who studies data harms. Without new laws that regulate how tech companies use our data and algorithms to push users toward harmful content, there is only so much parents can do, Marachi said.

    “The companies are not interested in children’s well-being, they’re interested in eyes on the screen and maximizing the number of clicks,” Marachi said. “Period.”

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  • Discord Announces Forced Name Changes, Pisses Everyone Off

    Discord Announces Forced Name Changes, Pisses Everyone Off

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    Discord is a pretty good product. It’s an easy way to communicate with friends, find realtime communities around topics of mutual interest, and crucial for making use of voice chat across most online multiplayer games. And now Discord’s decided to muck it all up by forcing everyone to switch to a new username in a giant migration no one seems to understand the reasoning for.

    As things stand, every Discord username is case sensitive and has four digits at the end of it. This lets multiple people adopt the same name and also makes it harder to search for people unless you have their exact handle—a virtue in a world where online harassment has become the norm. The system is occasionally annoying but overall feels befitting the platform’s greater amount of intimacy and privacy, and has helped it become a great hangout space, especially for gaming. Sony and Microsoft recently integrated it directly into the PlayStation 5 and Xbox Series X/S. And of course it’s also become a hotbed for leaks lately, including classified military reports.

    Image: Discord

    Not content with that successful status quo, Discord now plans to massively shake things up. “We wanted to make it easier for you to identify and add your friends while preserving your ability to use your preferred name across Discord,” the company announced this week. “So, we are removing discriminators and introducing new, unique usernames (@username) and display names.”

    These changes will arrive in the coming weeks and will initially be voluntary. Eventually, however, everyone will have to move over to the new system. Display names will still exist and be the primary way people are identified in chat, but the underlying username will become similar to the kind used everywhere else, complete with lots of potential duplicates once everyone is forced to change. Many of the initial reactions have not been kind:

    Aside from the fact that many Discord users seem to have adopted the platform precisely because it’s not easily searchable like Twitter, Facebook, and Instagram, there are plenty of other concerns as well. The move could open up more possibilities for fraud and impersonation, as we’ve seen with the recent hellfire on Twitter. There’s also been speculation that some people will now start camping on high profile usernames that belong to streamers and influencers on other platforms. But the biggest issue is that there’s no clear benefit to users with the change.

    Discord, on the other hand, is a for-profit startup that needs to continually scale in order to get bought or eventually go public. Like Slack, it can’t just be really good at private messaging and voice channels, it seemingly needs to be a huge social platform all its own. Bleh. There are already genuine concerns about how the company harvests use data, and might potentially exploit it to train AI chat tools. Many of the better features, meanwhile, are locked behind the service’s monthly Nitro subscription.

    The platform has been great in recent years, and was a lifeline for many when the pandemic shuttered everyone inside. Who knows what it will become in the future though, and changes like this are never reassuring. In the meantime, game companies keep moving their internet forums to Discord, leaving entire online communities at the mercy of the Silicon Valley growth mindset.

                   

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    Ethan Gach

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  • FTC: Facebook misled parents, failed to guard kids’ privacy

    FTC: Facebook misled parents, failed to guard kids’ privacy

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    U.S. regulators say Facebook misled parents and failed to protect the privacy of children using its Messenger Kids app, including misrepresenting the access it provided to app developers to private user data.

    As a result, The Federal Trade Commision on Wednesday proposed sweeping changes to a 2020 privacy order with Facebook — now called Meta — that would prohibit it from profiting from data it collects on users under 18. This would include data collected through its virtual-reality products. The FTC said the company has failed to fully comply with the 2020 order.

    Meta would also be subject to other limitations, including with its use of face-recognition technology and be required to provide additional privacy protections for its users.

    “Facebook has repeatedly violated its privacy promises,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “The company’s recklessness has put young users at risk, and Facebook needs to answer for its failures.”

    Meta called the announcement a “political stunt.”

    “Despite three years of continual engagement with the FTC around our agreement, they provided no opportunity to discuss this new, totally unprecedented theory. Let’s be clear about what the FTC is trying to do: usurp the authority of Congress to set industry-wide standards and instead single out one American company while allowing Chinese companies, like TikTok, to operate without constraint on American soil,” Meta said in a prepared statement.

    The Menlo Park, California company added that it will “vigorously fight” the FTC’s action and expects to prevail.

    Facebook launched Messenger Kids in 2017, pitching it as a way for children to chat with family members and friends approved by their parents. The app doesn’t give kids separate Facebook or Messenger accounts. Rather, it works as an extension of a parent’s account, and parents get controls, such as the ability to decide with whom their kids can chat.

    At the time, Facebook said Messenger Kids wouldn’t show ads or collect data for marketing, though it would collect some data it said was necessary to run the service.

    But child-development experts raised immediate concerns.

    In early 2018, a group of 100 experts, advocates and parenting organizations contested Facebook’s claims that the app was filling a need kids had for a messaging service. The group included nonprofits, psychiatrists, pediatricians, educators and the children’s music singer Raffi Cavoukian.

    “Messenger Kids is not responding to a need — it is creating one,” the letter said. “It appeals primarily to children who otherwise would not have their own social media accounts.” Another passage criticized Facebook for “targeting younger children with a new product.”

    Facebook, in response to the letter, said at the time that the app “helps parents and children to chat in a safer way,” and emphasized that parents are “always in control” of their kids’ activity.

    The FTC now says this has not been the case. The 2020 privacy order, which required Facebook to pay a $5 billion fine, required an independent assessor to evaluate the company’s privacy practices. The FTC said the assessor “identified several gaps and weaknesses in Facebook’s privacy program.”

    The FTC also said Facebook, from late 2017 until 2019, “misrepresented that parents could control whom their children communicated with through its Messenger Kids product.”

    “Despite the company’s promises that children using Messenger Kids would only be able to communicate with contacts approved by their parents, children in certain circumstances were able to communicate with unapproved contacts in group text chats and group video calls,” the FTC said.

    Meta critics applauded the FTC’s action. Jeffrey Chester, the executive director of the nonprofit Center for Digital Democracy, called it a “a long-overdue intervention into what has become a huge national crisis for young people.”

    Meta, and with its platforms like Instagram and Facebook, Chester added, “are at the center of a powerful commercialized social media system that has spiraled out of control, threatening the mental health and well-being of children and adolescents.”

    The company, he added, has not done enough to address existing problems — and is now unleashing “even more powerful data gathering and targeting tactics fueled by immersive content, virtual reality and artificial intelligence, while pushing youth further into the metaverse with no meaningful safeguards.”

    As part of the proposed changes to the FTC’s 2020 order (which was announced in 2019 and finalized later), Meta would also be required to pause launching new products and services without “written confirmation from the assessor that its privacy program is in full compliance” with the order.

    Meta has 30 days to respond to the FTC’s latest action.

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  • CEOs of Microsoft and Alphabet called to AI meeting at White House

    CEOs of Microsoft and Alphabet called to AI meeting at White House

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    Vice President Kamala Harris will host the chief executives of Alphabet GOOG GOOGL, Microsoft MSFT, OpenAI and Anthropic at the White House on Thursday to discuss artificial-intelligence issues.

    Harris and senior administration officials aim to have a “frank discussion” of the risks in AI development and of “ways we can work together to ensure the American people benefit from advances in AI while being protected from its harms,” according to an invitation for the meeting obtained by MarketWatch.

    The…

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