🚧 Reddit API Restrictions Loom

📝 Update 2023-04-20

What’s in today’s Business Edge update?

In today’s update: Microsoft unveils "Athena" AI chip for LLM training, while Reddit locks down API access for AI companies!

In other news, Instagram takes on Linktree with multiple bio links, Samsung's Bing move may empower Apple against Google, Microsoft, and Epic to join forces for GPT-4 in healthcare, Synthesis AI rolls out text-to-3D digital human synthesis tech. and .

Let’s get started 👇

1. 🌍 Global Impact:

   1. Affects multiple industries worldwide

   2. Has significant regulatory or legislative implications across countries

   3. Alters international relations or trade agreements

   4. Has a considerable effect on the global economy

2.  🏭 Industry-wide Impact:

   1. Affects an entire industry or multiple sectors within a region or worldwide

   2. Involves major technological advancements or disruptions

   3. Has significant regulatory or legislative implications for the industry

   4. Alters competitive dynamics, such as mergers, acquisitions, or new entrants

3. 📈 Market Impact:

   1. Affects a specific market or market segment within an industry

   2. Involves moderate technological advancements or disruptions

   3. Has moderate regulatory or legislative implications for the market

   4. Impacts consumer behavior or trends within the market

4. 🏢 Company Impact:

   1. Affects a specific company or group of companies within a market or industry

   2. Involves company-specific product launches, partnerships, or collaborations

   3. Has implications for company strategy, management changes, or financial performance

   4. Alters the competitive landscape for the company or its market segment

5.  🏘️ Local Impact:

   1. Affects a local or niche market within an industry

   2. Involves small-scale technological advancements or disruptions

   3. Has limited regulatory or legislative implications for the local market

   4. Impacts local consumer behavior, trends, or community engagement

Let’s get started 👇

🌍 Impact level: Global

News events that affects multiple industries, triggers significant regulatory changes, and impacts the economy worldwide.

“Today's tech news failed to shake up the world stage. Looks like the global impact is taking a day off” - Business Edge

📈 Impact level: Industry

News that can affect entire industries or multiple sectors, major technology advancements, and influence market leaders.

Microsoft's Custom AI Chip "Athena" Targets LLM Training, Not a Threat to Nvidia

Microsoft has been developing a custom artificial intelligence (AI) chip, code-named Athena, since 2019. The chip, designed for large language model (LLM) training, could be available for use within the company and OpenAI as early as next year. Nvidia, the market leader in AI chips with about 88% market share, is not expected to be threatened by Microsoft's move. However, it does highlight the growing need for hyperscalers to develop their own custom silicon.

As advanced generative AI models grow in scale, requiring exascale computational capabilities, companies like Microsoft are exploring diverse computational accelerators to speed up training while reducing time and cost. Custom AI chips also address the need for inference speed, a key requirement for machine learning applications. Although Nvidia remains the primary GPU technology driving extreme scale generative AI development, the last phase of Moore's law will likely be driven by heterogeneous acceleration, including GPUs and application-specific custom chips.

Read more about it at —> (read time: 4 minutes)

📝 Impact insight: We classify this news as having an Industry-wide Impact, as it affects the AI chip market and highlights the growing need for custom silicon development. This development could influence the strategies of other technology providers within the rapidly evolving AI market.

Synthesis AI Introduces Text-to-3D Digital Human Synthesis Technology

Synthesis AI, a leader in synthetic data technologies, has unveiled Synthesis Labs, which showcases new generative AI capabilities for text-to-3D technologies, initially focusing on digital human synthesis. The company has become the first to demonstrate high-resolution, cinematic-quality text-to-3D digital human synthesis, supporting advanced AI applications.

Synthesis AI's platform produces perfectly labeled synthetic data for training ML models by integrating generative AI and cinematic VFX pipelines. The latest text-to-3D offerings in Synthesis Labs enable prompt-based input and editing, making no-code 3D generative AI capabilities accessible to users with varying experience levels, from CV/ML engineers to non-developers.

Read more about it at —> (read time: 3 minutes)

📝 Impact insight: We classify this news as having an Industry-wide Impact, as the text-to-3D technology can be applied across various industries, including AR/VR, gaming, VFX, smart cities, automotive, and manufacturing simulations. The technology has the potential to change the way AI models are built and reshape the computer vision AI landscape.

Microsoft and Epic Team Up to Integrate GPT-4 AI in Healthcare

Epic Systems Corp., a leading healthcare software company, has announced a partnership with Microsoft to integrate generative AI, such as GPT-4, into electronic healthcare records via the Azure AI platform. The collaboration aims to enhance productivity, reduce administrative burdens, and improve patient care by allowing clinicians more time with their patients. Generative AI can help automate complex workflows, enable more efficient analysis of healthcare records, and support more informed decision-making and personalized care.

One example of this integration is the addition of natural language queries and interactive data analysis capabilities to SlicerDicer, a self-service reporting tool for physicians. The tool will allow physicians to explore data in a more intuitive, conversational manner. Epic and Microsoft have already piloted OpenAI services at healthcare systems including UC San Diego Health, UW Health, and Stanford Health Care, using GPT-4 to automatically draft message responses.

Microsoft's partnership with Epic could potentially bring OpenAI's services to thousands of US hospitals, as Epic holds a 32.9% market share in the US healthcare software industry, according to KLAS Research.

Read more about it at —> (read time: 4 minutes)

📝 Impact insight: We classify this news as having an Industry-wide Impact, as it involves major technological advancements and disruptions within the healthcare industry. The integration of GPT-4 and generative AI into electronic healthcare records has the potential to significantly alter the competitive dynamics and improve patient care across the sector.

🏭 Impact level: Market

News wich broadly affects multiple sectors, reshapes market dynamics, and influences consumer behavior.

Reddit to Restrict API Access, AI Companies Face Paywall for Data

Reddit announced upcoming API changes that will limit access to its content pipeline, which has been used to train AI tools such as OpenAI's ChatGPT, Google's Bard, and Microsoft's Bing AI. With the new changes, Reddit plans to put this data behind a paywall for commercial use.

More:

• Reddit's API has been available since 2008, allowing developers a wide range of uses

• API will remain free for moderation tools and educational/research environments

• Commercial usage of the API will require a separate agreement and an undisclosed cost

• Changes come as Reddit prepares for an initial public offering later this year

• Reddit CEO Steve Huffman emphasizes the value of user-generated content on the platform

Read more about it at —> (read time: 4 minutes)

📝 Impact insight: We classify this news as having a Market Impact, as it affects a specific market segment within the tech industry – AI companies using Reddit's API. The change may influence the resources and costs associated with training AI language models.

💎 PRO As unique data and content become increasingly valuable in today's digital landscape, Reddit's recent decision to restrict API access for commercial use could pave the way for a new monetization strategy. By putting a paywall in place, Reddit is effectively capitalizing on its rich user-generated content, which has been widely used for training AI tools like OpenAI's ChatGPT, Google's Bard, and Microsoft's Bing AI.

If this approach proves successful, it could set a precedent for other companies to follow suit, ultimately reshaping the industry. By monetizing access to their data, content providers can create a sustainable revenue stream while maintaining control over how their data is utilized. Furthermore, this strategy can encourage responsible data usage, as companies will be more mindful of their investments and prioritize projects with clear value propositions.

In a world where data is the new oil, Reddit's paywall strategy could become a popular model for companies looking to monetize their unique data assets and protect the value of their content. As more organizations adopt this approach, the industry may witness a shift towards fair compensation for data access and usage, fostering a more balanced and equitable digital ecosystem.

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Netflix Enhances Ad-Supported Plan: Better Resolution and Dual Streaming at $6.99

Netflix is upgrading its $6.99 per month ad-supported plan, offering subscribers 1080p video quality and two simultaneous streams. The improvements are effective immediately for subscribers in Canada and Spain and will roll out in all 12 markets where the company offers the ad-supported plan this month. Netflix's Q1 2023 letter to investors states that the Basic with Ads plan has exceeded average revenue per membership in the US, with recent licensing deals boosting content availability to 95% parity globally with no-ads plans.

Read more about it at —> (read time: 4 minutes)

The company added 1.75 million subscribers in Q1 2023, reaching a total of 232.5 million subscribers. This growth follows two consecutive quarterly declines in 2022, marking the first user losses in over a decade. Although Netflix's $1.31 billion profit exceeded analyst estimates, revenue of $8.16 billion fell short of the expected $8.18 billion. Netflix's stock slid 8% in after-hours trading as Q2 guidance for earnings per share was lower than expected.

Read more about it at —> (read time: 3 minutes)

📝 Impact insight: We classify this news as having a Market Impact, as it affects a specific market segment within the streaming industry, involves moderate technological advancements, and impacts consumer behavior and trends in the market.

Instagram Allows Multiple Links in Bio, Challenging Linktree's Dominance

Instagram has introduced a new feature that allows users to add up to five links in their bio, addressing a long-standing limitation that led to the adoption of third-party tools like Linktree. Announced by Mark Zuckerberg, the feature aims to fulfill one of the platform's most requested updates. However, only the first link will be directly visible in the bio, with the rest hidden in a pop-up context menu. This constraint might still encourage users to continue using services like Linktree for a more customized experience.

The slow integration of links across Instagram has been a pain point for users, with the platform taking years to enable links in Instagram Stories and still not allowing links in feed posts. The new feature allowing multiple bio links will be available to all accounts, including business and personal, and can be managed within the Instagram app.

Read more about it at —> (read time: 3 minutes)

📝 Impact insight: This news has a Market Impact, as it affects a specific market segment within the social media industry. The introduction of multiple bio links on Instagram might disrupt the business of third-party tools like Linktree, potentially altering their market position and affecting consumer behavior in terms of link management.

Apple's VR Headset to Feature Gaming, Fitness, and Collaboration Tools at WWDC 2023 Launch

Apple is working on a suite of software and services for its upcoming mixed-reality headset, including gaming, fitness, collaboration tools, iPad features, and sports viewing services. The headset, priced at around $3,000, is set to be unveiled at an event in June, with sales starting months later.

Read more about it at —> (read time: 2 minutes)

📝 Impact insight: We classify this news as having a Market Impact, as it focuses on a specific segment within the tech industry and introduces a novel 3D interface to consumers.

🏢 Impact level: Company

News that affects individual companies, influences corporate strategies, impacts stock prices.

Samsung's Bing Move Could Boost Apple's Bargaining Power with Google

According to Bank of America, Samsung's reported threat to replace Google Search with Microsoft Bing on its devices could benefit Apple. The bank estimates that Apple receives $20 billion from its search partnership with Alphabet, making Google the default search provider on iPhones and iPads. With Microsoft as a potential alternative to Google, Apple could have more bargaining power to further monetize its over 2 billion devices.

Bank of America's Wasmi Mohan suggests that Apple's current revenue-share agreement with Alphabet provides the company with an estimated 80% of mobile traffic acquisition costs generated by its vast user base's search queries. As Microsoft develops Bing with OpenAI's ChatGPT, Apple could renegotiate with Alphabet for better terms or consider switching to Bing when the current agreement expires. However, this move also poses risks, as users might revert to Google as their default search option, potentially decreasing Apple's high-margin revenue.

Read more about it at —> (read time: 3 minutes)

📝 Impact insight: We classify this news as having a Company Impact, as it affects Apple and its relationship with Alphabet and Microsoft. It involves company-specific partnership strategies and could potentially alter the competitive landscape for Apple in the search market.

Meta Announces Job Cuts Targeting Technical Teams

Meta is set to announce a new round of job cuts impacting technical teams, as part of its ongoing downsizing and restructuring effort. The company plans to cut 10,000 jobs, including engineers and technical staff across various divisions such as Facebook, WhatsApp, Messenger, Instagram, and Reality Labs. These cuts follow November's layoffs that slashed 11,000 jobs, marking the first widespread layoffs in Meta's history.

Read more about it at —> (read time: 3 minutes)

📝 Impact insight: We classify this news as having a Company Impact, as it directly affects Meta and its workforce. The job cuts and restructuring efforts may alter Meta's competitive landscape and internal dynamics.

Amazon Lays Off Employees in Advertising Unit Amid Cost-Cutting Measures

Amazon has begun laying off employees in its advertising unit as part of CEO Andy Jassy's effort to control costs. Paul Kotas, Amazon's SVP of advertising, IMDb, and Grand Challenge, sent a memo to staff announcing the job cuts as the company reallocates resources to maximize customer benefits and business health.

More:

• Unclear number of layoffs in the advertising unit

• Affected employees given 60 to 90 days to search for other roles within the company

• Layoffs come after Jassy announced 9,000 job cuts last month, in addition to 18,000 cuts announced last November and January

• Largest layoffs in Amazon's history following hiring spree during the Covid pandemic

• Cost-cutting measures affect even Amazon's most profitable businesses, such as ads and Amazon Web Services

Read more about it at —> (read time: 5 minutes)

📝 Impact insight: We classify this news as having a Company Impact, as it involves job cuts within a specific company and has implications for the company's strategy to control costs and reallocate resources.

🏘️ Impact level: Local

News with limited effect, concerns niche topics, affects a small audience.

“Nothing much happening here today, but we'll keep you posted” - Business Edge