ReportWire

Tag: TECH

  • Electric vehicles are creating a ‘halo effect’ for hybrids—and losing prospective customers to them

    Electric vehicles are creating a ‘halo effect’ for hybrids—and losing prospective customers to them

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    “Hybrids are killing it,” said Michelle Krebs, executive analyst at Cox Automotive. “They’re just tearing it up.” Read More

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    Steve Mollman

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  • Why FOMO Is Fueling Nvidia Stock

    Why FOMO Is Fueling Nvidia Stock

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    In mid-October 2022, Nvidia, the AI chipmaker, was worth around $280 billion. Less than a year and a half later, the company is worth $2.2 trillion. Yes, that’s an eight-times increase—from a relatively sane number with a b (billion) to a truly insane number with a t (trillion)—in just 17 months. That growth is because of the frothy excitement, or perhaps frothy insanity, around AI in Silicon Valley. In fact, Nvidia might be one of the most talked-about stocks in recent history. It’s constantly mentioned on CNBC and debated on social media, and it’s part of the buy-buy-buy circuit for almost every tech and Wall Street analyst, investor, or armchair stock dabbler I chat with. And while there is a legitimate reason to discuss the value of the company that is making AI chips for virtually every major tech firm, including Amazon, Alphabet, Meta, Microsoft, and OpenAI, the endless discussion of Nvidia’s valuation and stock price is being driven by one distinct thing: FOMO.

    This fear of missing out on another tech boom has not only engulfed Nvidia but also spread across the entire sector—particularly with AI, Bitcoin and all things crypto, as well as the makers of GLP-1 drugs being used for weight loss (think Ozempic). These surges are emblematic of a broader trend in which both seasoned and novice investors pour money into what they perceive as the next big thing, but risk causing the collapse of these potential next big things by doing so. Similarly, other AI-related tech stocks, like C3.ai and Palantir, are experiencing valuations that are incredibly high. Fueling the insanity of these tech stocks is none other than social media, with everyone sharing screenshots of their “hot” stock take and how much money they’ve made. This frenzied investment landscape is leading to a greater concern among lots of investors that they have missed out on significant moneymaking opportunities, which ironically is the same sentiment that is fueling this ongoing cycle of irrational exuberance, where we start to reach that thin line between opportunity and volatility.

    Depending on whom you ask, we’re either just at the beginning or coming to the end of the cycle. One investor, who has been talking to me about his Nvidia investment for the past year as if it were his favorite child, thinks this is just the start. “AI is shaping up to be an investor’s dream come true. It’s all about huge promises and the potential for staggering profits that seem limitless,” he told me. “We’re really just at the beginning, and there’s a sense that the next few years could generate wealth for generations. It’s like trying to catch lightning in a bottle to find that one standout stock.” Another institutional investor sees it differently, telling me this is no different from tulip mania, the housing crisis, or the dot-com collapse. “It’s a bubble. It’s a bubble. It’s a bubble,” the institutional investor said. “The question, which is the question with all bubbles, is: Does a stock like Nvidia collapse at $1,000 a share or at $25,000 a share? It’ll definitely fall; it’s simply not sustainable. But timing is the key here to winning big or losing everything.”

    Suppose the housing crisis had Bear Stearns as its poster child, which collapsed when the mortgage-backed securities market imploded. Then the dot-com bubble had pets.com as its symbol of excess and failure, as it went from an IPO worth hundreds of millions of dollars to bankruptcy almost overnight. Today’s poster child is clearly going to be Nvidia. Many wonder if Nvidia’s staggering $2.2 trillion valuation reflects its underlying value or represents an overly bloated figure disconnected from the company’s financial health. Only time will tell if the company can justify growing even more, if its financial metrics justify such a colossal market cap, or if we are witnessing a speculative bubble inflated by the frenzy around artificial intelligence.

    While it’s impossible to predict where we are in the mountainous financial landscape of peaks and dips, it’s clear that there is a frenetic level of FOMO-ism around AI. On Monday evening, Nvidia took over a convention center in San Jose. The company’s leather-jacket-wearing CEO, Jensen Huang, unveiled the latest AI chips to throngs of adoring fans. One person I spoke to at the event likened it to seeing a rock star’s concert in the 1980s. Another analyst dubbed it the “AI Woodstock.” And on social media, frantic investors, programmers, and Nvidia fans (yes, they’re a thing) posted photos of a computer chip called Blackwell as if they had captured the moment Michael Jackson did the moonwalk for the first time.

    But it’s not just Nvidia that has been taken by extreme FOMO. Even crypto has made a vertiginous comeback, driving the weirdest asset on earth to new heights. Though Bitcoin fell to around $16,000 last November and didn’t seem like it would ever make a comeback, mainstream retail investors are again increasingly flocking to Bitcoin and its associated ETFs. Buyers have started scooping up more of this nebulous digital thing with no physical value or mainstream use case. As such, the market has driven Bitcoin to break records, with the cryptocurrency surpassing $70,000 a coin earlier this month. Memecoins and shitcoins and even NFTs are making a comeback. A venture capitalist told me the problem is that there is just too much money flowing into tech, and as a result, everything is rising—and not necessarily in a good way. “Too much water, and you get malarial mosquitoes; too much cash, and you get shitcoins,” the VC aptly noted.

    You can look further than tech companies to see other markets’ valuations also soaring because of FOMO. For example, several of the Big Pharma companies producing GLP-1 drugs like Ozempic and Mounjaro have also seen their market caps skyrocket, with stocks like Eli Lilly and Novo Nordisk more than doubling or nearly doubling over the past year.

    So how does this all end? The institutional investor thinks badly. “We have two Americas right now. We have the America where people have money in the markets, and they are chasing three exciting narratives—GLPs, AI, and crypto—in the face of irrationality in the markets. And the FOMO is getting out of control,” he said. “Then you have another America, who, despite what the Consumer Price Index claims, can’t afford their rent, can’t afford food, and can’t afford to take their kids to Disneyland, or even to the movies. If this divide continues, the American experiment and capitalism itself are at risk.”

    Once again, we’re at a crossroads similar to what was faced in 1636 (tulips), 1999 (dot-com), and 2008 (housing), with speculation and innovation indistinguishably intertwined. As more companies grow to trillion-dollar valuations, or companies like Nvidia grow to be worth another trillion and another and another, it’s become increasingly clear that the current euphoria surrounding companies like Nvidia—and, by extension, the broader tech, crypto, and pharma markets—is a double-edged sword. For some, there have been unprecedented opportunities for wealth creation. But the FOMO investors are only adding pressure to pressure points already set to burst, and if this bubble collapses—or should I say, when it collapses—it could bring more than just Nvidia down with it.

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    Nick Bilton

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  • Hertz’s electric vehicle and CEO about-face is the latest twist after a COVID bankruptcy filing and a deep relationship with Carl Icahn

    Hertz’s electric vehicle and CEO about-face is the latest twist after a COVID bankruptcy filing and a deep relationship with Carl Icahn

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    It seemed like a good idea at the time. Now we know better.

    Hertz, reeling from a bankruptcy and the pandemic, announced plans to buy 100,000 Teslas in late 2021. The splashy move certainly helped Elon Musk’s electric-vehicle maker, which saw its market cap surge past $1 trillion for the first time. 

    Hertz enjoyed a bump in its market value as well, and the car-rental giant hired NFL star Tom Brady to show off its new fleet of Teslas.

    “How do we democratize access to electric vehicles? That’s a very important part of our strategy,” interim CEO Mark Fields said at the time. “Tesla is the only manufacturer that can produce EVs at scale.”

    But Hertz paid close to list prices for the Teslas, rather than demanding a large discount as car-rental giants often do. That decision would come back to bite it.

    Last year, Musk’s EV maker cut prices across its lineup to boost sales. That not only angered individual customers who’d recently bought a Tesla at a higher price, but it also crushed the resale value of Hertz’s used EVs. 

    ‘Elevated costs’ of EVs

    This January, the rental giant revealed that it was selling off 20,000 electric vehicles, noting the costly depreciation, weak demand, and pricey repairs. It took a $245 million hit and suffered its steepest quarterly loss since the pandemic.

    “The elevated costs associated with EVs persisted,” Hertz CEO Stephen Scherr said at the time. “Efforts to wrestle it down proved to be more challenging.”

    This week, Hertz announced that Scherr would be replaced by Gil West, the former COO of General Motors’ Cruise robotaxi unit. While Scherr took over after the Tesla deal, under his leadership Hertz continued its focus on EVs, placing big orders for them with GM and Polestar.

    The ill-fated EV push followed a difficult stretch for Hertz that culminated in billionaire activist investor Carl Icahn unloading his substantial stake in the car-rental company in 2020 days after its bankruptcy. In 2014, Icahn had begun acquiring his stake in Hertz, which was struggling. He called Hertz “a great brand” that he hoped would “return to its former glory,” and three of his allies soon had board seats, while the hunt for a new CEO began.

    After selling selling his stake, Icahn said, “Yesterday I sold my equity position at a significant loss, but this does not mean that I don’t continue to have faith in the future of Hertz.”

    The following year, the company announced the decision to buy Teslas. Now it’s about to welcome yet another new CEO, again tasked with turning things around. 

    Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

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    Steve Mollman

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  • Could Congress’s TikTok Ban Actually Land on Joe Biden’s Desk?

    Could Congress’s TikTok Ban Actually Land on Joe Biden’s Desk?

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    A bill that could lead to a federal ban on the video-sharing app TikTok passed the House Wednesday in a 352-65 fast-tracked vote, with 15 Republicans and 50 Democrats voting against it. The Protecting Americans From Foreign Adversary Controlled Applications Act marks the first time the House has passed a bill seeking to outlaw an internet app. The bill would make it illegal for companies to distribute or host TikTok within the US unless ByteDance, the app’s Beijing-based parent company, divests its interest, opening the door for TikTok to be purchased by a Western company.

    Lawmakers from both parties believe the app poses a national-security threat, alleging that the Chinese government could compel TikTok to provide it with data on US users or spread propaganda. “Apps like TikTok allow the Chinese Communist Party to push harmful content to our youth and engage in malign activities, such as harvesting the location, purchasing habits, contacts, and sensitive data of Americans,” House Speaker Mike Johnson said in a statement. “Today’s bipartisan vote demonstrates Congress’s opposition to Communist China’s attempts to spy on and manipulate Americans, and signals our resolve to deter our enemies.”

    TikTok has repeatedly denied such claims and said it would not cooperate with the Chinese government if asked for data on its US user base. It also has moved to store its US data on cloud servers managed by Oracle, a software firm based in Austin. “This latest legislation being rushed through at unprecedented speed without even the benefit of a public hearing, poses serious Constitutional concerns,” Michael Beckerman, TikTok’s public policy chief, wrote in a letter to the sponsors of the PAFACA Act.

    Should the bill pass in the Senate, President Joe Biden has said he would sign it into law. However, support for the legislation appears less certain in the upper chamber: Chuck Schumer, the Senate majority leader, said Tuesday he will “have to consult and intend to consult with my relevant committee [chairpeople] to see what their views would be.” Maria Cantwell, chairwoman of one relevant committee, the Senate Commerce Committee, has likewise not committed to advancing the bill, instead saying she will work with her colleagues to find a “path forward that is constitutional and protects civil liberties.”

    At the same time, the measure has received the backing of Senate Intelligence Committee chairman Mark Warner, a Democrat, and the committee’s top Republican and vice chairman, Marco Rubio. “We are united in our concern about the national security threat posed by TikTok—a platform with enormous power to influence and divide Americans whose parent company ByteDance remains legally required to do the bidding of the Chinese Communist Party,” the lawmakers wrote in a joint statement. “We were encouraged by today’s strong bipartisan vote in the House of Representatives, and look forward to working together to get this bill passed through the Senate and signed into law.”

    A TikTok ban was first floated during the final months of the Trump administration, which used executive action to prohibit transactions between ByteDance and US citizens. But those efforts ultimately were curbed following legal challenges. As for Donald Trump, he has since appeared to cool on the issue, recently saying that a ban would make young voters “go crazy” during an election year. “Frankly, there are a lot of people on TikTok that love it,” Trump told CNBC, adding that any legislation that would harm TikTok would in turn help Facebook. “There’s a lot of good and there’s a lot of bad with TikTok,” he continued, “but the thing I don’t like is that without TikTok, you can make Facebook bigger, and I consider Facebook to be an enemy of the people.” 

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    Caleb Ecarma

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  • Reddit is preparing to sell shares to the public – MoneySense

    Reddit is preparing to sell shares to the public – MoneySense

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    While it’s not clear from the perspective just how many of those 1.76 million shares will end up in the hands of Reddit users, the number is likely large enough for those users to exert meaningful pressure on Reddit’s share price. The main concern is that a surge of demand for shares that aren’t locked up could create a sudden run-up in the share price, followed by an equally sharp decline once the initial excitement wears off and short-sellers—investors who effectively place bets that a stock will decline—begin to gather.

    That’s pretty much what happened with Robinhood Markets, which operates a simple-to-use and low cost trading platform aimed at novice investors that also offered IPO shares to its users. The company’s stock opened at $38 on its first day of trading in July 2021, shot up to $85 five days later, then plunged back to roughly $40 after just six weeks. Robinhood closed Monday at $16.86.

    “Mishandling this process could result in [Reddit] alienating their most ardent supporters, potentially turning them into critics,” warned Deiya Pernas, co-founder of Pernas Research.

    But, Don Montanaro, president of the trading platform Firstrade, argues that Reddit may not have had much choice but to go this route.

    “They’ve been running a business where their clients, their users, are their product,” he said. “It’s a case of, ‘What else could we do? This is who we are, how could we not offer this to these people?’ ”

    Can I get in on this offering?

    If you don’t already have a Reddit account, you’re probably out of luck. The offering is only available to users who had established accounts as of January 1, 2024.

    Beyond that, shares will be distributed to Redditors and moderators via a formula that accounts for their measurable contributions to the discussion boards. Redditors with high “karma” scores—a measure of their contributions to the community, such as posts that other Redditors find useful, amusing or insightful—will be grouped into six priority tiers for access to the stock offering.

    Moderators who have taken significant numbers of “moderator actions” will likewise be sorted into those tiers. Such actions can include anything from designing a new discussion group—a.k.a. a “subreddit” in the jargon of the site—to removing spam or duplicate posts, to enforcing subreddit rules. Moderators will also be rated on membership trends in their subreddits.

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    The Canadian Press

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  • Reddit aims to raise up to $748 million in high-profile IPO that other ventures—and members of the subreddit WallStreetBets—will watch closely

    Reddit aims to raise up to $748 million in high-profile IPO that other ventures—and members of the subreddit WallStreetBets—will watch closely

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    Reddit Inc. and its investors are seeking to raise as much as $748 million in what would be one of the biggest initial public offerings so far this year, according to people familiar with the matter.

    The social media platform and some of its current shareholders plan a sale of 22 million shares for $31 to $34 each, said the people, who asked not to be identified because the information wasn’t public yet. The company was seeking a valuation of as much as $6.5 billion in the listing, Bloomberg News has reported.

    The people said the company is setting aside about 1.76 million shares in the IPO to be bought by users and moderators who created accounts before Jan. 1. Those shares won’t be subject to a lockup period, meaning the owners can sell them on the opening day of trading, according to Reddit’s filing in February with the US Securities and Exchange Commission.

    A representative for Reddit declined to comment.

    Reddit’s Valuation

    Reddit’s more than two-year slog to listing reflects the ups and downs of the market, beginning with its initial confidential filing in 2021, when IPOs on US exchanges set an an all-time record of $339 billion, according to data compiled by Bloomberg. Reddit raised funds that year valuing it at $10 billion, and Bloomberg News reported the following year that it could be valued at as much as $15 billion in an IPO.

    Meanwhile, IPOs in the US tumbled, reaching only $26 billion last year, the data show. In January, Bloomberg News reported that Reddit was weighing feedback from early meetings with potential IPO investors that it should consider a valuation of at least $5 billion.

    The company is a high-profile addition to the year’s roster of newly and soon-to-be public companies. The biggest of those listings was the $1.57 billion offering by Amer Sports Inc. in January. Astera Labs Inc., a software maker focused on artificial intelligence, said in a filing Friday that it would seek up to $534 million in its IPO, which will likely proceed Reddit’s.

    Read More: Intel-Backed Astera Seeks $534 Million in IPO With AI Appeal

    Reddit’s listing will be watched closely by IPO candidates such as Microsoft Corp.-backed data security start up Rubrik Inc. and health-care payments company Waystar Technologies Inc. Their deliberations come after a quartet of US listings led by semiconductor designer Arm Holdings Plc’s $5.23 billion offering in September failed to ignite a lasting rebound in the market.

    Shrinking Losses

    Founded in 2005, Reddit averaged 73.1 million daily active unique visitors in the fourth quarter, according to its February filing. The company reported a net loss of $91 million on revenue of $804 million in 2023, compared with a net loss of about $159 million on revenue of $667 million a year earlier.

    Reddit’s largest shareholder is Advance Magazine Publishers Inc., part of the Newhouse family publishing empire that owns Conde Nast, which bought Reddit in 2006 and spun it out in 2011.

    Reddit said its millions of loyal users and moderators pose risks as well as a benefit for the company. Redditors have a historically combative relationship with the site, launching revolts over everything from racism on the platform to executives’ staffing decisions.

    Meme Stocks

    Thousands of members of the WallStreetBets forum — which boasts around 15 million users and helped popularize meme stocks like GameStop Corp. — voted to boost a forum post about shorting Reddit’s stock when it begins trading. Their reasons varied from the company’s lack of profitability to competitive concerns.

    The IPO is being led by Morgan StanleyGoldman Sachs Group Inc.JPMorgan Chase & Co. and Bank of America Corp., according to Reddit’s filing. The company plans for its shares to trade on the New York Stock Exchange under the symbol RDDT.

    Reddit co-founder and Chief Executive Officer Steven Huffman said in a signed letter included in the filing that the company has many opportunities to grow both the platform and the business.

    “Advertising is our first business, and advertisers of all sizes have discovered that Reddit is a great place to find high-intent customers that they aren’t able to reach elsewhere,” Huffman said. “Advertising on Reddit is rapidly evolving, and we are still in the early phases of growing this business.”

    AI Licensing

    Reddit said it’s in the early stages of allowing third parties to license access to data on the platform, including to train artificial intelligence models. The company said that in January it entered into data licensing arrangements with an aggregate contract value of $203 million and terms ranging from two to three years. It expects a minimum of $66.4 million of revenue from those agreements this year, according to the filing.

    Reddit also has announced a deal with Alphabet Inc.’s Google, allowing Google’s AI products to use Reddit data to improve their technology. Large language models often need vast troves of human-generated content to improve.

    Huffman owns shares giving him 3.5% of the voting power. That includes Class B shares that will have 10 votes each compared with one each for the Class A shares to be sold in the IPO, the filing shows. Huffman also has a voting proxy agreement with Advance.

    Other large shareholders include Chief Operating Officer Jennifer Wong, as well as FMR LLC and entities affiliated with OpenAI Chief Executive Officer Sam Altman, Tencent Holdings Ltd., Vy Capital and Quiet Capital and Tacit Capital, according to the filing.

    Huffman’s fellow co-founder, venture capitalist Alexis Ohanian, isn’t listed among the investors with stakes of 5% or more and isn’t named elsewhere in the filing.

    — With assistance from Priya Anand, Ryan Gould, and Katie Roof

      Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

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      Amy Or, Bloomberg

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    1. Best Advice For Shy And Anxious People Using Apps

      Best Advice For Shy And Anxious People Using Apps

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      Approximately 40 to 50%of adults are shy, which makes it harder to find the special someone

      Approximately 40-50% of adults are shy, making it hard for you to not only make friends – but to find the special someone.  Across the world, shy people have a little bit more trouble and have to use a lot more effort to get out there and take the chance.  Thanks to the technology today, it is a bit easier to do it online.  Here is the best advice for shy and anxious people using apps to date.

      RELATED: Yacht Rock Pairs Perfectly With Cocktails

      Shyness and social anxiety can go hand in hand.  Social anxiety is the fear of social situations involving other people, with a focus on “being embarrassed, humiliated, rejected or looked down on in social interactions.” But this is not fully a barrier to finding a bestie, a partner or even just a lover.

      Before you start, make a list of the best qualities friends and family share about you. It will take you into the connections/messaging/chatting with a positive vibe. Know your worth of before you find someone special, it will give you a better space to start.

      Also, narrow what you want in a partner, it gives you a better focus as you interact with others.  Maybe 3-4 things so you have a solid base.

      Get to know the different apps

      One thing which diminishes stress and the feeling of being out of control is research. Before you start swiping get to know the different dating apps, specially those that are designed with shy or anxious people in mind. While these apps might have a smaller user base than Tinder, they might adapt better to your needs. In research find out the best tips for profiles, responses, etc.

      Get help from friends when setting up your profile

      Every person is different when it comes to managing anxiety. While some prefer to keep it to themselves or journal it out, others seek the help of their friends and family members. Don’t doubt yourself or feel embarrassed when setting up your profile; ask friends and family on their opinions and allow them to help you choose an interesting bio and some flattering pictures.  Also, ask opinions on when and how to share information to others online.

      Once-A-Week Rule
      Photo by Brodie Vissers via Burst

      Set some boundaries

      While dating apps help break the ice, it’s very common for people to chat with hundreds and never go on a date. Set some time limits and don’t let yourself chat with people with no discernible goal in sight. Dating apps are for dating, which means that at some point you’re going to have to meet this person face to face. It’s also important to prevent your dating app use to intrude on your day to day life. Avoid using the app while working or when doing something you normally enjoy. If you need some help in keeping track of your app use, enable your smartphone time management feature. This tool will limit your time on the app, setting up a fixed amount of minutes per day that block the app once you’ve been there for too long.

      RELATED: 5 Dating Apps Perfect For Introverts And Shy People

      Use the chat option to take pressure off the first date

      One of the best parts about dating apps is the fact that you can get to know the person you’ll be meeting before a face to face encounter. Take advantage of all chatting and text messaging by taking your time to come up with questions and answers without having the pressure of a stranger waiting for the perfect response.  But a warning, don’t go too long just chatting, it can set unrealistic expectations when you do finally meet in person.

      Take breaks

      Breaks are very helpful for all sorts of dating app users. While dating around and chatting with people can be very fun, rejection is also almost always part of the equation. Know this might happen at any moment and you might spend weeks swiping around without having a match. Take a break and then jump back in.

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      Sarah Johns

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    2. Capping H-1B visas at 85,000 could cripple U.S. growth in tech like AI, an expert says: ‘We are actively shooting our future selves in the foot’

      Capping H-1B visas at 85,000 could cripple U.S. growth in tech like AI, an expert says: ‘We are actively shooting our future selves in the foot’

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      As the annual H-1B lottery opens Wednesday, the program’s annual cap of 85,000 visas is once again under scrutiny, with some experts and business leaders calling it a threat to U.S. innovation.

      An H-1B visa is reserved for foreign workers in specialty fields who have a job offer from a U.S. employer. Though the visa holders can work in any field, they’re especially prevalent in tech and other STEM jobs, including AI. Top companies including Amazon, Meta, and Salesforce have sponsored tens of thousands of H-1B workers over the past few years alone.

      The visas have become a talking point among anti-immigration conservatives. Donald Trump controversially suspended the program temporarily while in office, while presidential hopeful Vivek Ramaswamy said he would “gut” the program and create an “actual meritocratic admission.” Other critics say recipients take away jobs from Americans.

      But tech leaders, many of whom spoke out against Trump’s visa freeze, say the U.S. actually has the opposite problem: Rather than restricting the H-1B program, it should be expanded. Currently, 65,000 visas—a figure that hasn’t changed in more than two decades—can be awarded each year via a lottery, while another 20,000 can go to those who earn a graduate degree in the U.S.

      Demand is overwhelming supply: In 2023, hundreds of thousands of applicants were denied. That hurts those workers, of course, but also companies, says Allison Ahern Fillo, a Boston-based immigration attorney. Some companies she represents are forced to apply for a visa for the same job candidate multiple years in a row.

      “It’s really unfortunate that a U.S. employer wants to be able to employ someone and it’s really up to chance,” Fillo tells Fortune. “They vetted the person, they’re the right person for the job.”

      Aaron Levie, CEO of cloud company Box, recently wrote on X that the discrepancy between demand and the number of visas granted should “make you go insane.”

      “We are actively shooting our future selves in the foot,” he wrote. Levie did not respond to Fortune‘s request for an interview.

      Research has found that hiring these migrant workers doesn’t adversely affect the economy, as some allege, but rather leads to further job creation and economic growth for myriad reasons: These workers drive innovation, pay U.S. taxes, start new businesses, and so on.

      Restricting immigration ultimately harms companies and slows wage growth. Research by Britta Glennon, a professor at the University of Pennsylvania, finds that when companies cannot fill the roles with U.S. workers and are unable to hire high-skilled foreigners, they actually offshore more jobs.

      Microsoft has found that for every H-1B hire we make, we add on average four additional employees to support them in various capacities,” Bill Gates told members of Congress back in 2008.

      Advocates of increasing the cap on visas also note that it’s not just the tech sector that would benefit: There’s plenty of demand in fields like medicine and scientific research where there simply aren’t enough American candidates.

      What makes increasing the cap even more crucial, Fillo says, is that the H-1B visa is one of the only ways for educated foreigners to work in the U.S. at all—and eventually become residents or citizens.

      “When we can’t hire and retain the top non-native talent, we hand global competitors what used to be America’s greatest edge,” Ben Zweig, a labor economist and the CEO of Revelio Labs, previously wrote for Fortune. “Solving this issue will help firms get the talent they need, help our cities grow, and create a more efficient and fairer workforce.”

      Recent changes to visas

      The Biden administration has made a few changes to the program in the past year unrelated to raising the cap, including allowing some applicants to renew their visas in the U.S., rather than requiring them to travel to their home country and renew it in a U.S. consulate.

      U.S. Citizenship and Immigration Services also made changes to the annual lottery. In recent years, USCIS found that the same applicant was being submitted by multiple companies in order to game the system and increase their chances of being selected. This year, an individual can only enter once.

      Additionally, the Biden administration has proposed a change that would require an applicant’s job to be “directly related” to their studies, and to the needs of any given job. Immigration experts say that could make things more difficult for visa holders who don’t necessarily end up with a job in a field related to what they studied. They are also proposing allowing entrepreneurs to sponsor themselves.

      And of course, there are other objections to the program. Some critics have accused employers of exploiting the program, and using it to hire foreign workers while firing U.S. employees. Others worry the foreign workers themselves are the ones being exploited, and that the process is overly onerous on workers and businesses alike.

      Learn how to take control of your personal finances with Get Your Due, our six-week email bootcamp. Sign up for free.

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      Alicia Adamczyk

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    3. Student fights AI cheating allegations for using Grammarly

      Student fights AI cheating allegations for using Grammarly

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      (NewsNation) — University junior Marley Stevens faced a startling setback when a paper she worked on received a zero grade, plunging her into academic probation and jeopardizing her scholarship. The twist? She had used Grammarly, a popular writing plugin recommended by her university to refine her work.

      Stevens, recounting her ordeal, expressed initial disbelief upon receiving the email notifying her of the zero grade. “I thought he had sent the email to the wrong person because I worked super hard on my paper,” she said in a Sunday interview on “NewsNation Prime.”

      She didn’t expect that three months later, she would still be entangled in the aftermath, with her scholarship hanging by a thread. Grammarly says 30 million people use this tool to catch spelling errors, typos and grammar issues.

      Grammarly also uses generative AI, and a detection service flagged Stevens’ assignment for the teacher as “unintentionally cheating.”

      “I’m on probation until Feb. 16 of next year. And this started when he sent me the email. It was October. I didn’t think that now in March of 2024 that this would still be a big thing that was going on,” Stevens said.

      Despite Grammarly being recommended on the University of North Georgia’s website, Stevens found herself embroiled in a battle to clear her name. The tool, briefly removed from the school’s website, later resurfaced, adding to the confusion surrounding its acceptable usage despite the software’s utilization of generative AI.

      “I have a teacher this semester who told me in an email like, ‘Yes, use Grammarly. It’s a great tool.’ And they advertise it,” Stevens said.

      Grammarly’s Jenny Maxwell clarified the company’s stance, emphasizing its role as a partner in enhancing writing experiences while ensuring responsible usage. “Our AI engine inside of it helps people create better writing experiences that are grammatically correct, [with] fewer spelling issues,” she explained.

      Maxwell defended the tool’s integrity, highlighting its 15-year history of aiding students and professionals in crafting grammatically correct content. “We’ve recently added a generative engine within Grammarly,” Maxwell explained, emphasizing responsible usage and transparency in citing its assistance.

      Despite Stevens’ appeal and subsequent GoFundMe campaign to rectify the situation, her options seem limited. The university’s stance, citing the absence of suspension or expulsion, has left her in a bureaucratic bind.

      Maxwell, on behalf of Grammarly, extended support, including a $4,000 donation.

      Reflecting on the broader implications, Maxwell urged institutions to adapt their assessment methods in light of evolving technologies like AI.

      “Education is wrestling right now with how they need to evolve the way that they assess writing,” she remarked.

      NewsNation reached out to the university for comment and hasn’t heard back.

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      Damita Menezes

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    4. How AI Could Disrupt Hollywood

      How AI Could Disrupt Hollywood

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      A screenwriter friend once told me about a young assistant who was handed a script by his boss and told to drive it across town, to Bel Air, to the stately home of one of the world’s most celebrated directors. He walked up the long driveway, past the manicured gardens, before handing off the script. As the director inspected it, the assistant said nervously, “I have to say, your house is just incredible.” Without skipping a beat, the director shot back, “Yeah, well, no one who lives in it is happy” and slammed the door. When I asked why the director was so miserable, my friend replied: “Probably because he works in Hollywood.”

      One reason the industry is so much more taxing than other creative fields is because it’s so expensive to make anything. According to producers and studios I’ve spoken to, TV show budgets now range between $6 million and $25 million an episode, not including marketing costs. Most mainstream movies now cost between $100 million and $250 million to make. Years ago, you could make a blockbuster for a fraction of that. The first Top Gun (1986) cost $15 million to make. The 2022 sequel cost $170 million.

      But this is all about to change because of AI. This past month, OpenAI announced Sora, which can take text and turn it into astonishingly realistic video, in the same way the company’s other products, like ChatGPT, can with text-to-text, or Dall-E can with text-to-images. Days after the announcement of Sora, the media mogul Tyler Perry said he was stopping an $800 million expansion of his Atlanta film and TV studios. “I had gotten word over the last year or so that this was coming, but I had no idea until I saw recently the demonstrations of what it’s able to do,” Perry told The Hollywood Reporter. “It’s shocking to me.” (Perry acknowledged in the same interview that he’d used AI in two upcoming films.)

      There are also platforms like Pika, Runway, and VideoPoet, made by Google, which offer competing text-to-video AI software that can create short clips in whatever style you want. These technologies can make video from text or images, taking a still image and animating it in a way that makes it look like it’s a scene out of a $170 million production. Go look at the demo reel for Wonder Studio, an AI special effects company that uses drag-and-drop to change an actor into, say, a robot or an alien, to see just how quickly these advancements are happening.

      It’s not just visual effects that can be done with drag-and-drop algorithms. It’s everything. Text-only LLMs, like Squibler, Jasper, and ChatGPT, can already write mediocre scripts. The same is true for start-ups that enable you to create the score for a film using a full philharmonic of brass, woodwinds, percussion, and strings. Then there’s the AI editing platforms that can string it all together. All of this hints at a not-too-distant future where a film or TV series could be made by a single person, though regrettably that single person would not be Mike White.

      While most people who work in Hollywood—no doubt including the 90 percent who are already struggling to make a living—don’t look on these developments as desirable, there’s a swath of people who see them as an inevitable addition to storytelling, at least one day. “Creators in all realms are going to have to look at this as a profound opportunity. They will be able to collaborate with a force that can sift through every grain of cultural capital on the planet and traverse the entire kingdom of history in less time than it takes to pour a cup of coffee,” says Allan Loeb, a screenwriter who is currently writing a novel about creative AI in Hollywood. “The apprentice’s 10,000 hours will become eight seconds.”

      Putting aside the hotly disputed copyright issues, Hollywood is about to experience a disruption similar to what happened more than two decades ago in the music industry, where a person used to need access to an exorbitantly expensive recording studio to make a single song (not to mention agents, managers, and distribution deals), until the MP3 and inexpensive software let artists like Justin Bieber (who was discovered on YouTube) and Billie Eilish (who was discovered on SoundCloud) subvert the usual channels of music stardom. Today between 25,000 and 100,000 new songs are uploaded every 24 hours to Spotify, mostly made, presumably, by people in their bedrooms. Your guess is as good as mine as to how many of these songs are actually any good or how many people actually listen to them. But imagine when anyone can create their own Oppenheimer-length film that could pass for the product of a big studio.

      “By giving everyone access to AI tools that will allow individuals to make films, music, animation, and more, we will open up these mediums to whole populations of people who would otherwise never have the possibility of telling their story,” says Mika Johnson, a filmmaker and documentarian who also works in AI. The problem is that any idealized Cambrian explosion of access is almost certain to collapse on itself. “Every artist on the planet is having a Wile E. Coyote moment,” Loeb says. “My only advice to them is that they may not want to look down.”

      Hollywood is a town in a perpetual existential crisis, going back to the transition from silent films to talkies in the ’20s, to the end of the studio system in the ’40s, to the rise of television in the ’50s. This past decade has pulled and pushed and slapped Hollywood in every which way possible. The streamers broke those lush business models, and then COVID-19 ground the industry to a halt. And right when it was about to get greased up and ready to churn out content again, the WGA and SAG went on strike.

      There was a long list of demands from the unions, from residuals to data, but at the heart of the fight last year, the unions wanted to ensure that their members wouldn’t be replaced by AI. The studios agreed not to use AI in lieu of writers and mainstream actors. But three years from now, when the next negotiations begin, AI video and AI writing technologies may be a thousand times more advanced and ubiquitous, and that battle will be even harder to win.

      Many people I’ve spoken to who work in AI say, like Johnson, that their goal is to democratize creativity, making filmmaking and storytelling available to anyone. The aforementioned demo released by Wonder Studio, which boasts an advisory board of industry heavyweights like Steven Spielberg and Joe Russo, emphasizes how its tools are meant to empower artists rather than replace them. And I imagine most writers, directors, producers, editors, and cinematographers don’t believe that a machine can do what they do. But the shift is already happening.

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      Nick Bilton

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    5. Researchers Use AI To Learn Which Drugs Don’t Mix | High Times

      Researchers Use AI To Learn Which Drugs Don’t Mix | High Times

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      A study, published in the journal Nature Biomedical Engineering, centers around a model used to determine which drugs may interfere with one another if taken together. 

      “In vitro systems that accurately model in vivo conditions in the gastrointestinal tract may aid the development of oral drugs with greater bioavailability,” the researchers wrote. 

      “Here we show that the interaction profiles between drugs and intestinal drug transporters can be obtained by modulating transporter expression in intact porcine tissue explants via the ultrasound-mediated delivery of small interfering RNAs and that the interaction profiles can be classified via a random forest model trained on the drug–transporter relationships.”

      According to MIT News, which wrote about the study, the researchers made “use of both tissue models and machine-learning algorithms,” which “revealed that a commonly prescribed antibiotic and a blood thinner can interfere with each other.”

      The outlet said that discovering “more about which transporters help drugs pass through the digestive tract could also help drug developers improve the absorbability of new drugs by adding excipients that enhance their interactions with transporters.” Likewise, it could “also be applied to drugs now in development.” 

      “Using this technology, drug developers could tune the formulation of new drug molecules to prevent interactions with other drugs or improve their absorbability. Vivtex, a biotech company co-founded in 2018 by former MIT postdoc Thomas von Erlach, MIT Institute Professor Robert Langer, and Traverso to develop new oral drug delivery systems, is now pursuing that kind of drug-tuning,” MIT News said.

      In tests with 24 drugs “with well-characterized drug–transporter interactions,” the researchers said that the “model achieved 100% concordance.” 

      “For 28 clinical drugs and 22 investigational drugs, the model identified 58 unknown drug–transporter interactions, 7 of which (out of 8 tested) corresponded to drug-pharmacokinetic measurements in mice,” they continued. 

      “We also validated the model’s predictions for interactions between doxycycline and four drugs (warfarin, tacrolimus, digoxin and levetiracetam) through an ex vivo perfusion assay and the analysis of pharmacologic data from patients. Screening drugs for their interactions with the intestinal transportome via tissue explants and machine learning may help to expedite drug development and the evaluation of drug safety.”

      Giovanni Traverso, an associate professor of mechanical engineering at MIT and the senior author of the study, told MIT News that one of the “challenges in modeling absorption is that drugs are subject to different transporters.” 

      “This study is all about how we can model those interactions, which could help us make drugs safer and more efficacious, and predict potential toxicities that may have been difficult to predict until now,” said Traverso, who is also a gastroenterologist at Brigham and Women’s Hospital.

      MIT News has more background on the study:

      “Previous studies have identified several transporters in the GI tract that help drugs pass through the intestinal lining. Three of the most commonly used, which were the focus of the new study, are BCRP, MRP2, and PgP. For this study, Traverso and his colleagues adapted a tissue model they had developed in 2020 to measure a given drug’s absorbability. This experimental setup, based on pig intestinal tissue grown in the laboratory, can be used to systematically expose tissue to different drug formulations and measure how well they are absorbed. To study the role of individual transporters within the tissue, the researchers used short strands of RNA called siRNA to knock down the expression of each transporter. In each section of tissue, they knocked down different combinations of transporters, which enabled them to study how each transporter interacts with many different drugs.”

      The publication explained that, to test their predictions, researchers “looked at data from about 50 patients who had been taking one of those three drugs when they were prescribed doxycycline,” which showed “that when doxycycline was given to patients already taking warfarin, the level of warfarin in the patients’ bloodstream went up, then went back down again after they stopped taking doxycycline.” It also “confirmed the model’s predictions that the absorption of doxycycline is affected by digoxin, levetiracetam, and tacrolimus,” according to MIT News.

      “There are a few roads that drugs can take through tissue, but you don’t know which road. We can close the roads separately to figure out, if we close this road, does the drug still go through? If the answer is yes, then it’s not using that road,” Traverso told the publication.

      “These are drugs that are commonly used, and we are the first to predict this interaction using this accelerated in silico and in vitro model,” Traverso continued. “This kind of approach gives you the ability to understand the potential safety implications of giving these drugs together.”

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      Thomas Edward

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    6. Major outage plagues AT&T cellphone users

      Major outage plagues AT&T cellphone users

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      ORLANDO, Fla. – A massive cellphone outage has been reported in the U.S. by AT&T customers.

      Starting early Thursday, AT&T customers started seeing the service on their phones switch to SOS mode, which means only emergency calls can be made.

      AT&T has yet to comment about the outage, the cause of which is unknown.

      In Central Florida, the Flagler County Sheriff’s Office posted on X that AT&T customers who have an emergency should send a text message to 911.

      On a smaller scale, outages were also reported by users of Cricket Wireless, Verizon and T-Mobile,

      Check back for updates.

      Copyright 2024 by WKMG ClickOrlando – All rights reserved.

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    7. Mark Zuckerberg says his daughter ‘thought that I was a cattle rancher’ for a while thanks to his unusual hobby in Hawaii

      Mark Zuckerberg says his daughter ‘thought that I was a cattle rancher’ for a while thanks to his unusual hobby in Hawaii

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      Mark Zuckerberg’s job can be hard to describe to a child. But one of his favorite hobbies these days—producing beef—is easier to understand.

      The Meta CEO recently revealed that his daughter misunderstood what his main job was. 

      “For a while, she just thought that I was a cattle rancher,” the Facebook cofounder told Morning Brew Daily on Friday.

      While Zuckerberg’s fascination with martial arts has been well documented, he’s also intent on producing some of the best beef on the planet—not to sell commercially, but to enjoy with friends and family.

      The tech billionaire is raising cattle on Ko’olau Ranch, a property he owns on the Hawaiian island of Kauai. In an Instagram post last month, he wrote: 

      “Started raising cattle at Ko’olau Ranch on Kauai, and my goal is to create some of the highest quality beef in the world. The cattle are wagyu and angus, and they’ll grow up eating macadamia meal and drinking beer that we grow and produce here on the ranch.”

      Zuckerberg has no shortage of land on the island. According to a Wired investigation published a few months ago, the property includes 1,400 acres. “Less than one percent of the overall land is developed with the vast majority dedicated to farming, ranching, conservation, open spaces, and wildlife preservation,” a spokesperson for Zuckerberg and his wife Priscilla Chan told the technology publication.

      “We want the whole process to be local and vertically integrated,” Zuckerberg wrote on Instagram. “Each cow eats 5,000-10,000 pounds of food each year, so that’s a lot of acres of macadamia trees. My daughters help plant the mac trees and take care of our different animals. We’re still early in the journey and it’s fun improving on it every season.” 

      Zuckerberg jokes with his family that “if I’m ever done with Meta, I’m going to run Mark’s Meats,” he told Morning Brew.

      Such an operation would be easier for a child to understand than Meta’s offerings, which include Facebook, Instagram, and the metaverse. 

      “If you’re a kid, it’s kinda hard to wrap your head around what Meta is,” Zuckerberg noted.

      As for raising cattle, “I just think it’s super fun,” he said. “It’s like, ‘Alright, let’s brew our own beer. Let’s grow our own macadamia nuts.’” His children can be part of figuring out what it’s like run such a process, he noted, and it’s “easier for them to do that than be involved in the software business.”

      Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

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      Steve Mollman

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    8. Stellantis CEO says Chinese EVs are ‘possibly the biggest risk’ facing his carmaker and Elon Musk’s Tesla

      Stellantis CEO says Chinese EVs are ‘possibly the biggest risk’ facing his carmaker and Elon Musk’s Tesla

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      One major problem for automakers as they transition to electric vehicles is that traditional cars still generally cost less. That matters to everyday car shoppers trying to make ends meet.

      In China, however, EVs are actually more affordable than gas guzzlers. And increasingly, Chinese EVs are being exported to markets around the world and sold for prices that are tough to match.

      That has leaders of automakers outside China worried. This week, Stellantis CEO Carlos Tavares likened China’s automotive emergence to the arrival of Japanese carmakers in the U.S. in the 1970s, followed by South Korean rivals three decades later.

      Now it’s China’s turn to make its mark, he suggested, and that poses a threat to existing carmakers like Stellantis, whose brands include Dodge, Chrysler, Jeep, Ram, and Maserati.

      “The Chinese offensive is possibly the biggest risk that companies like Tesla and ourselves are facing right now,’’ Tavares said. “We have to work very, very hard to make sure that we bring out consumers better offerings than the Chinese.”

      The most-feared Chinese carmaker is probably BYD—backed by Warren Buffett’s Berkshire Hathaway—which recently topped Tesla in global EV sales. 

      “No one can match BYD on price. Period,” Michael Dunne, CEO of Asia-focused car consultancy Dunne Insights, recently told the Financial Times. “Boardrooms in America, Europe, Korea, and Japan are in a state of shock.”

      BYD keeps its costs low in part because it owns the entire supply chain of its EV batteries, from the raw materials to the finished battery packs. The battery accounts for roughly 40% of a new electric vehicle’s price.

      Taking on Chinese EVs

      Chinese EVs are not flooding American roads today thanks to protectionist measures—a 25% tariff on Chinese-made cars on top of a regular 2.5% one on imported cars. But American lawmakers fear that Chinese carmakers will use factories in Mexico to avoid such tariffs, taking advantage of the North American free trade agreement.

      “So do we want that the Chinese carmakers take a significant share of the U.S. market in the next 20 years, or the next 10 years? I don’t know. That is the question,” Tavares said. “So how do we prevent that from happening beyond all the protectionist decisions, which are out of my reach? Well, by making our consumers happy.”

      Tavares said that while Stellantis will launch 18 new EVs this year, eight in North America, the “job is not done” until prices for EVs match those of traditional cars. 

      In Europe—where carmakers are less protected from Chinese competition—Stellantis is taking orders for the new electric Citroen e-C3. It’s priced to take on budget models from Chinese rivals like Great Wall Motor. The e-C3 sells for 23,000 euros ($25,100) and has a range of 320 kilometers (199 miles). It will hit showrooms in the second quarter. An entry-level version slated for 2025 will sell for 19,990 euros.

      Avoiding a ‘race to the bottom’

      Both models will be sold at a profit, Tavares noted. Last month, he warned about the perils of getting drawn into a damaging price war.

      “If you go and cut pricing disregarding the reality of your costs, you will have a bloodbath. I am trying to avoid a race to the bottom,” he said. “I know a company that has brutally cut pricing and their profitability has brutally collapsed.”

      He didn’t elaborate on which company he was referring to, but his comments came shortly after Tesla cut prices on its Model Y across Europe and both its Model Y and Model 3 in China.

      Read more: Ford CEO, who’s been worrying about China’s EV dominance for years, says ‘the world has changed’ and he’d work with rivals on a cheaper battery

      Tesla, in a call with investors last month, warned of “notably lower” sales growth this year after a disappointing fourth quarter. CEO Elon Musk said his EV maker is “between two major growth waves.” Hoping to better compete against both Chinese rivals and cheaper gas-powered cars, Tesla plans to start producing an entry-level EV starting at $25,000 next year.

      Musk, too, is warily watching BYD and other Chinese carmakers. 

      “If there are no trade barriers established,” he told investors last month, “they will pretty much demolish most other car companies in the world. They’re extremely good.”

      Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

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      Steve Mollman

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    9. Bay Area may feel impact of Uber, Lyft, DoorDash drivers’ strike

      Bay Area may feel impact of Uber, Lyft, DoorDash drivers’ strike

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      Thousands of drivers for ride-hailing and food delivery apps such as Uber, Lyft and DoorDash are planning a nationwide Valentine’s Day strike for better pay, but it’s unclear if the Bay Area will feel an impact.

      The coalition behind the strike, Justice for App Workers, says its drivers won’t provide rides to and from airports between 11 a.m. and 1 p.m. in 10 U.S. cities, none of which are in the Bay Area.

      Bob Redell has the full report in the video above.

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      NBC Bay Area staff

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    10. Martin Scorsese’s Super Bowl Commercial? You Can Thank His Daughter for That.

      Martin Scorsese’s Super Bowl Commercial? You Can Thank His Daughter for That.

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      In his six decades of directing, Martin Scorsese has earned 10 Best Director Academy Award nominations and taken home the award once (for a little indie flick called The Departed). His films dominate every “best of all time” list—and some, like Goodfellas, have become a religion unto themselves. But despite the millions of people who have seen his films—including his most recent opus, Killers of the Flower Moon—Sunday marked his debut in a whole new genre, to one of his biggest audiences yet: the alien-filled Super Bowl commercial.

      Titled “Hello Down There,” the 90-second short film for website builder Squarespace—which debuted midway through the second quarter of Sunday’s game—sees clueless young New Yorkers too distracted by cat videos to notice the UFOs casually gliding over them. The spot’s logline reads, “What does a highly advanced civilization have to do to get noticed around here?”

      As it turns out, the answer lies in TikTok. Or, at least, for Scorsese, it has. As the epitome of advanced civilization—what else would you call the person who directed Raging Bull—Scorsese has recently been noticed by Gen Z in a whole new way, becoming the parasocial cinephile grandpa to thousands of chronically online youngsters.

      This is, of course, the handiwork of Francesca Scorsese. The director’s 24-year-old daughter has followed in his footsteps as a video maven, but her medium isn’t film, it’s vertical video. And her muse isn’t Robert De Niro or Leonardo DiCaprio—it turns out, it’s her dad. Over the past year, Francesca has become his de facto PR rep for “the youth”: his ambassador and translator for a generation that doesn’t necessarily have John Huston’s first picture or Truffaut’s Antoine Doinel saga down rote.

      Francesca first featured Scorsese in a TikTok in 2021, asking him to identify different female beauty items based on their photos. (Memorably, he mistook nipple pasties for earbuds.) Early reviews were overwhelmingly positive, with comments like “omg it’s Martin Scorsese from Shark Tale” and “This guy seems like he would make pretty decent movies idk why tho.” (Presumably, those were sarcastic—at least we hope.) Since then, Francesca has upped Scorsese’s screen time on her account, which now has over 200,000 followers and 4.8 million likes. Last summer, she went viral with a 30-second “trailer” of her dad, a compilation of short clips of the director playing with puppies, laughing with old pal Robert De Niro, and strutting around in a slick business suit, with the caption: “He’s a certified silly goose.”

      Francesca’s content often taps into Scorsese’s storied career and encyclopedic film knowledge, from a video of him “auditioning” their schnauzer, Oscar (and lauding him as a revelatory talent), to another in which he power ranks popular movies. In her videos, Scorsese is no longer a famous director with dozens of canonical projects under his belt; he’s just a guy. More specifically, he’s an incredibly adorable old guy who loves father-daughter handshakes, twinning with his dog, and watching 2001: A Space Odyssey.

      The revelation of Francesca’s videos is their ability to subvert our expectations of how a legendary filmmaker acts and participates in internet culture. For many Gen Zers, the name “Martin Scorsese” may evoke an edgy boyfriend’s Taxi Driver poster, an uncle’s old DVD collection, or a mental image of that short guy always standing next to Leonardo DiCaprio, but these are just vague associations. Sure, Scorsese is the genius behind Mean Streets and The Wolf of Wall Street, but this hardly counts for a zeitgeist-hungry generation that communicates chiefly through memes and irony.

      There has to be something more—some kind of hook—and that’s exactly what Francesca has uncovered. With pitch-perfect humor and TikTok trend savvy, she has single-handedly shaped her dad into a memeable, shareable internet figure (the highest rung of Gen Z adoration).

      The comments sections of her TikToks are laden with young users begging to be adopted into their family, referring to Scorsese as “grandpa” and praising his commitment to Dance Moms–inspired bits. As one TikTok user commented, “martin scorsese and francesca have figured out what the tiktok peeps want…and it is exactly this.”

      If anything perfectly captures Gen Z’s newfound fondness for Marty (as the cool kids call him), it’s Francesca’s video introducing him to internet slang terms. Because Scorsese’s brain presumably functions solely in film quotes and box office stats, Francesca helps him out with context clues like “Watching a movie in 70 mm hits different” and “The King of Comedy was slept on.” There’s nothing like the look on Scorsese’s face when he registers the meaning of the latter, forlornly recalling how “people hated it when it came out. … It was the flop of the year.” (Viewers then gave shout-outs to The King of Comedy in the comments to ease his spirits—perhaps another sign of how hipster film kids do, indeed, have fine taste.)

      At the heart of claims that Francesca has done the Lord’s work—or, better yet, deserves an honorary Oscar—there’s a very genuine gratitude for the conversations her posts are creating. With Killers of the Flower Moon in its second theatrical run and up for 10 Oscars next month, Scorsese has been active on the press circuit and now has some internet virality to boot. While there’s no way to quantify the effect Francesca’s TikToks may have had on Killers’ box office performance, it’s difficult to imagine that her videos have not at least piqued the interest of a few otherwise indifferent Gen Zers. (Even if 30-second TikToks pale next to his 206-minute 1920s epic.)

      In fact, when the film first hit theaters in October, fans were quick to sing her praises on Twitter and suggest she work her viral social media magic to promote the film. In reference to last year’s SAG strike, which prevented actors from promoting their projects, one tweet stated that “Francesca Scorsese emerged and is carrying killers of the flower moon promo on her back.” An exaggeration? Certainly. But an unfounded one? Absolutely not.

      Francesca has always been candid about being a huge fan of her dad’s work—she’s partial to The Irishman and The Wolf of Wall Street—and it’s hard to not melt at the evident love and admiration behind every TikTok she “forces” him into. She’s strategic with her content, but never in a way that feels insincere or overly calculated. This is no clout-chasing ruse that will end with an eye roll. Rather, one gets the sense that Francesca is her dad’s biggest cheerleader.

      Look no further than the fact that she seemingly recently convinced him to create a Letterboxd account, where he now shares curated film lists with his nearly 340,000 followers. This came after numerous commenters requested that she get Scorsese on the popular film review app. Even Letterboxd itself was in on the TikTok action, commenting from a verified company account, “Marty has taste,” on the video of him ranking films in a tournament bracket.

      Francesca may be the queen bee of film TikTok, but her content speaks to something more than just having a dad with a cinema institute named after him. As the new hub of pop culture, TikTok has the growing power to widen Gen Z’s cinematic horizons. Look no further than Turner Classic Movies’ 800,000-plus followers, or the rise of the “Wes Anderson Challenge,” which saw new Anderson converts channeling his distinctive style in 30-second videos. The most exciting aspect of “filmtok” is, perhaps, that it exists at all, especially considering the platform. Here is a limitless exploration space for kids who may not be aspect ratio experts but will at least do a proper double take when Martin Scorsese inexplicably appears on their For You pages.

      A single search of #filmtok yields a truly staggering range of content, from Nicolas Cage reaction memes to red-carpet interviews to a surely long-requested compilation of Disney actors who later played serial killers. The beauty of TikTok is that all these types of content coexist (semi) peacefully, letting users fall down rabbit holes of their choice or stumble across one of the world’s greatest filmmakers guessing what “sneaky link” means. (Spoiler alert: not personal peccadilloes.) Whether you seek genuine advice from a renowned screenwriter or simply discover a director while doom-scrolling, TikTok is the intergenerational playground for all kinds of film lore and know-how.

      While it’s safe to say that Scorsese himself is not exactly a fan of TikTok, he certainly recognizes its value to younger generations on some level. In an interview with the Los Angeles Times, the director swore that he really has no idea what’s happening when Francesca records him for “those things.” He did, however, acknowledge the wide acclaim of their “Oscar the Dog” audition video, noting that “the one we did with the dog, that was known.” And though he may shake his head disapprovingly while Francesca lip-synchs to the Kardashians, there’s always a glint in his eye, a sliver of awareness that says, “Hey, if the kids are into it, why not?” The man knows that an audience is an audience, on TikTok or anywhere else, and more importantly, he trusts his daughter to do a damn good job entertaining them.

      With Marty’s Big Game debut in the rearview and the Oscars fast approaching, the father-daughter team has resumed its rightful place in the spotlight. In a teaser for the “Hello Down There” ad released by Squarespace last Monday, Francesca helps her dad transition from TikTok to the final frontier of media literacy: website building.

      “Marty & Francesca Make a Website” plays like an extended cut of the duo’s TikToks, with the same delightful back-and-forth unique to a Baby Boomer learning anything technological. In the video, Francesca encourages her dad to make a website that shows his directorial vision of an “intergalactic plea for connection,” but this proves easier said than done. (“URL,” especially, becomes a term of immense confusion.)

      However, by the end of the video, Francesca has, once again, helped her dad share his work with younger generations, this time with a font that, to Marty’s approving eye, expresses the “yearning” of his ad’s aliens. The spot ends with Scorsese telling Francesca that their website “slaps,” proving himself a star pupil of Gen Z lingo. “I really regret ever teaching you that,” Francesca replies, but her smile says just the opposite.

      Holyn Thigpen is an arts and culture writer based in Atlanta. She holds an MA in English from Trinity College Dublin and spends her free time googling Nicolas Cage.



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      Holyn Thigpen

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    11. Zero interest-rate babies are facing their day of reckoning. It’s time this generation of startups learns how to fly

      Zero interest-rate babies are facing their day of reckoning. It’s time this generation of startups learns how to fly

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      A decade of low interest rates and cheap capital birthed a startup generation of “zero interest-rate babies.” Now that rising interest rates have turned public markets sour on disruptive, high-growth tech companies, investors are pushing these ZIRBs out of the nest.

      In 2024, they must learn how to fly before they hit the ground. The stakes are not limited to these companies. The value of high-growth, disruptive tech companies is equivalent to about 7.3% of the U.S. gross domestic product. There are more than 1,200 unicorns with billion-dollar-plus valuations in the world, according to Pitchbook data. More than half of these (approximately 600) are based in the U.S. Not far behind is an army of soon-to-be unicorns, valued at more than $500 million.

      Even as changing market conditions reveal many of their weak spots, most of these companies have so far been immune to public scrutiny. But these ZIRBs share a troubling trait: they were able to hide severe structural flaws beneath enthusiastic but unsustainable growth conditions.

      To learn how to really fly, ZIRB CEOs, CFOs, and investors need to throw out traditional backward-looking financial analyses and build confidence in the solidity of the company’s economic engine and subsequent paths to growth and profitability. These paths should be clear, well-framed, and consistent with the company’s end goal in terms of financing options. The following fundamental questions can help establish the feasibility of these paths:

      What is the quality of the company’s revenue?

      The key element to look for here is the truly “recurring” nature of the business, including a critical analysis of what is behind Annual Recurring Revenue (ARR). In the case of non-software businesses, this means understanding how much revenue is re-occurring and making sure that high margins are associated with this revenue stream. Quality of revenue also refers to customer base quality and diversification as well as the strength of the user or customer’s own economics.

      What is the quality of the company’s growth?

      It is critical to confirm that growth has a solid foundation, grounded on the existing customer base. For SaaS businesses, this is best measured through net revenue retention (NRR, the percentage of revenue now received from a customer compared to a year ago, taking into account expansion) and gross revenue retention (GRR, the percentage of revenue from a customer that remains after one year). Once a decision is made on the quality of growth for existing customers, it will be key to assess the company’s ability to fuel the new business engine efficiently.

      In marketplace businesses, quality of growth can be reflected in the ability to increase the take rate. For example, Uber’s take rate has risen (29% in 2023 vs. 19% in 2021) as the company improved its value proposition.

      What is the quality of the company’s margins?

      With the end of subsidized growth, only strong gross (or contribution) margins can support a sustainable cost structure that also requires innovation and investment in research and development to remain competitive. At a cash-flow level, strong operating margins are needed to drive growth at scale for these businesses.

      How resilient is the company?

      Once a decision is made on the path to growth and profitability, ZIRBs will also need to be assessed through the lens of their resilience. If financial controls are reviewed as a part of legal audits, governance stands out as perhaps the most critical point here because it can lack a clear framework and should be assessed deeply.

      This must include guardrails to ensure founders don’t cross the line between high confidence and self-belief, which are key to building true industry leaders, and exaggeration–or even fraud. As these companies continue to build our future and transform our societies, their resilience also rests on their ability to comply with essential environmental, social, and governance (ESG) criteria, notably climate and diversity, equity, and inclusion (DEI) considerations.

      Only by answering these questions can investors accurately assess the prospects and viability of a high-growth tech company. Many CEOs and investors will discover weaknesses within the ZIRB universe over the coming months, resulting in some high-profile failures.

      The good news is that there’s still time for most of these babies to course-correct by adapting to the new capital paradigm and raising the probability of reaching a healthy adulthood.

      Raphaelle d’Ornano is the CEO of strategic consultancy D’Ornano+Co.

      More must-read commentary published by Fortune:

      The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

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      Raphaelle d’Ornano

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    12. A top Chinese carmaker is launching satellites into low-Earth orbit for real-time communication anywhere—giving Elon Musk’s SpaceX some company

      A top Chinese carmaker is launching satellites into low-Earth orbit for real-time communication anywhere—giving Elon Musk’s SpaceX some company

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      A Chinese rocket launched a group of communications satellites produced by one of the country’s largest carmakers, boosting the nation’s efforts to catch up in low-Earth orbit — an area dominated by Elon Musk’s SpaceX.

      Eleven satellites made by Geespace, a subsidiary of Zhejiang Geely Holding Group Co., lifted off aboard a Long March CZ-2C rocket from the Xichang Satellite Launch Center in Sichuan province on Saturday at 7.37 a.m. local time, state broadcaster CCTV reported.

      For Geespace, it’s the long-awaited second such launch following an initial batch of nine satellites it sent to orbit in mid-2022.

      Geespace wants to deploy a network of satellites some 600 kilometers (373 miles) above the Earth that can one day link to driverless cars and support other features in Geely vehicles. The company also hopes they will be able to provide links for consumer electronics. As competition in China’s auto market heats up and space infrastructure improves, satellite communications are becoming another important selling point to consumers. 

      “Right now, I might have satellite function and you don’t,” Geespace Chief Executive Officer Tony Wang said in an interview with Bloomberg News before the launch. “But in the future, everyone will be equipped with the feature, and also every car.”

      Wang referred to two smartphones in Huawei Technologies Co.’s Mate series, which support satellite-enabled dialing and also connect to China’s Beidou satellite navigation system. Geespace’s satellite communication is now available in several of Geely group’s EVs, including the Zeekr 001 FR and 007, and the Galaxy E8.

      China has made major strides in developing its space program, including landings on Mars and the far side of the moon, and has plans for a “rapid establishment” of a “massive” constellation in low-Earth orbit, the Global Times reported in late December. 

      China, Russia Disguise Threats Posed by Satellites, US Says (1)

      However, state-owned enterprises so far have been slow in building that low-Earth orbit presence, and the Geely subsidiary is one of the only private-sector companies to try operating satellites there. SpaceX operates more than 5,300 satellites in low-Earth orbit and continues to launch dozens more every month.

      This weekend’s launch came more than 18 months after Geespace deployed its first batch of satellites. The company now faces a tight schedule if it hopes to meet its goal of deploying the constellation’s 72-satellite first phase by next year.

      “To establish this satellite constellation, we need to set up the network, on-the-ground infrastructure and also push forward the commercialization of cloud service,” Wang said. “It is a lot of pressure.”

      The group’s billionaire founder and Chairman — Li Shufu — owns almost 10% of Mercedes-Benz Group AG, and Geely owns stakes in other foreign automakers such as Volvo AB and Lotus Technology Inc. Li also picked Geespace’s Chinese name, which means a path in time and space.

      Spy Satellite Race in Asia Heats Up with Japanese Rocket Launch

      Geely was China’s third-largest auto exporter last year, behind only SAIC Motor Corp. and Chery Automobile Co. Geespace plans to one day offer its service globally, Wang said, “to provide real-time satellite communication anywhere in the world except the north and south poles.”

      In 2021, Geespace completed the construction of a factory in the eastern Chinese city of Taizhou that’s capable of producing 500 satellites a year. The company has sold dozens of those satellites to Chinese startups, universities and others involved in space, Wang said. 

      “The next race for the EV sector is self driving and the Internet of Things service. Telecommunications infrastructure is also moving from 5G to 6G. One of its key features is the wide use of satellite communications and navigations network,” Wang said. “We think the demand and the size for this market will reach an inflection point very soon.”

      Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

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      Linda Lew, Bruce Einhorn, Bloomberg

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    13. Forget the Turing Test. AI needs to pass the Summer Camp Test before it can take over the world

      Forget the Turing Test. AI needs to pass the Summer Camp Test before it can take over the world

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      As I type this, just one browser tab over is a menacing spreadsheet. Impossibly long, it’s crammed with numbers and notes. I’m dreading returning to it–and wondering if I have the resolve to untangle the logic and probability problems within.

      I’m a senior advisor for artificial intelligence (AI) at Mozilla and VP of AI and machine learning at Workday. But this spreadsheet has nothing to do with my day jobs, or even computer science. I’m doing something a bit more difficult: Signing my three kids under 10 up for summer camp.

      It’s an incredibly complicated, convoluted, and time-consuming process. Parents often need to begin six months in advance–when we’re just getting our first snow storms here in Boston. And even then, it’s challenging: Earlier today I was placed in a 47-minute digital queue just to access a registration website. So why don’t I simply outsource this to an AI assistant?

      I can’t. And that should tell you something about the hype you hear about AI–especially the consumer-facing variety.

      About a year ago, when ChatGPT launched, AI came close to passing the Turing Test, the famous thought experiment devised by English mathematician Alan Turing in 1950. If AI could converse in a manner indistinguishable from a human, Turing said, it would truly be “intelligent.”

      Not long after this milestone came the hype. Tech leaders sounded off not only on AI’s unlimited potential but also its existential danger. Now that we have intelligent machines among us, they argued, we are just a few lines of code from utopia–or dystopia.

      In reality, that’s not the case.

      Tools like ChatGPT and the large language models (LLMs) that power them are an impressive feat of computer science. They can be incredibly useful, too. But all-powerful? Just ask any harried parent trying to get a head start on summer camp registration. 

      As many parents know, figuring out a schedule for the eight weeks that school is out is an odyssey. You need to find the right programs, at the right times, in the right places, at the right price. And those are just the basic logistics. Then come the deeper questions: Where are the kids’ friends going? Is the camp’s vibe right? Is admission competitive? Can we carpool? How much sunblock is required?

      Just last week, Boston Globe correspondent Kara Baskin detailed this challenge perfectly in her column titled “Parents, prepare for battle: A memo from your favorite cutthroat Boston summer camps.”

      Right now, this odyssey can’t be outsourced to the AI assistants on the market. It still takes a human being to navigate the quantitative and qualitative complexities of summertime extracurriculars. Even Sissie Hsiao, Google VP and General Manager for Google Assistant and Bard, has lamented AI’s inability to solve the complications of summer camp registration.

      That’s lesson number one: AI isn’t about to take over the world; it can’t even solve summer camp. So take AI futurist doomsday hysteria with a grain of salt. Let’s worry when AI passes the Summer Camp Test, not the Turing Test.

      Often, AI hype claims the tech will level the playing field, eliminating disparities that have long plagued society. Yet AI assistants are being tailored for the people who need them least: professionals ensconced in the corporate realm.

      Growing up, my mom–who had limited English, limited tech literacy, and a job that paid less than minimum wage–could have really benefited from an AI assistant when navigating things like summer camp registration. She didn’t have 47 minutes to wait in a digital queue. But tools like ChatGPT still aren’t advanced enough to untangle the actual, hard problems for people with less means and access.

      The Summer Camp Test hints at what we need more of in AI: Systems built to solve real problems, from the mundane (like summer camp logistics) to the game-changing (like novel pharmaceutical research). What we don’t need? More hype about omnipotent AI.

      Kathy Pham is a computer scientist, senior advisor at Mozilla, VP of AI and Machine Learning at Workday, and a visiting lecturer at Harvard Business School. Opinions here are not representative of any employers, and only of her most critical role as a parent.

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      The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

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      Kathy Pham

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    14. CEOs of Meta, X, Discord, TikTok and Snap testify before Senate Judiciary Committee

      CEOs of Meta, X, Discord, TikTok and Snap testify before Senate Judiciary Committee

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      Congress today is grilling the chief executives of several big tech companies, including Meta CEO Mark Zuckerberg, about potential harms from their products on teens.

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