🚨 Big Tech Ditch ChatGPT, Concern?

What’s in today’s Business Edge update?

Let’s start the week with fresh updates from the tech world!
AI security is under the microscope as big names pull the plug on ChatGPT amidst data leak fears and Meta steps into the Twitterverse, promising a fiery showdown.

But that's not all! Apple is leveraging Generative AI to revolutionize the iPhone experience. Meanwhile, Meta plans massive layoffs in its quest for "efficiency", sending shockwaves through the industry. Over in Montana, the state's TikTok ban is facing a legal backlash - a fascinating tug-of-war over First Amendment rights.

Let’s get started!

🌐 Big Tech Digest

Concise summaries of the most interesting tech news stories from Big Tech.

[1] AI Security Dilemma: Major Firms Pull Plug on ChatGPT Amid Data Leak Concerns

Corporate giants including Apple, Amazon, Goldman Sachs, and Verizon have imposed restrictions on the use of ChatGPT, an OpenAI-owned AI chatbot, citing privacy and data leak concerns. Despite the productivity benefits, several firms believe the security risks of using the AI tool outweigh its advantages. On the other hand, some corporations, such as JP Morgan Chase and Deutsche Bank, are considering lifting the ban upon rigorous vetting for safe use.

More:

• Apple, along with other major corporations, has banned or restricted the use of ChatGPT over concerns of data leaks.

• While some companies view ChatGPT as a threat, others, including Coca-Cola and Bain & Company, have established partnerships with OpenAI to leverage its AI capabilities.

• The restriction isn't limited to companies only, as Italy has temporarily banned the service, alleging non-compliance with Europe's GDPR.

• Several firms, including Goldman Sachs and Samsung, are in the process of developing their own AI tools for internal use.

• Major companies that have either banned or restricted employees from using ChatGPT include Apple, Bank of America, Calix, Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan Chase, Northrup Grumman, Verizon, and Samsung.

_{Tags: #AI, #Privacy, #Regulation, #Big tech, #GPT-4}

Read more about it at —> (read time: 12 minutes)

Insight:

The move to restrict or ban ChatGPT by major firms underscores the growing concerns about the intersection of AI and privacy. While AI tools like ChatGPT can boost productivity, they also raise significant data privacy issues, as the AI model learns from conversation data. This development demonstrates the fine balance that businesses must strike between embracing technological advancements and ensuring data security. From a global perspective, this incident could serve as a catalyst for more robust AI regulations and greater scrutiny over AI ethics, affecting both the industry and market levels. Additionally, it highlights the importance of companies developing proprietary AI tools that meet their specific security and privacy standards.

[2] Meta Preps for Twitter Showdown: A New Challenger Enters the Microblogging Ring

Meta is reportedly set to launch a Twitter competitor as early as June. Lia Haberman, a digital media marketing expert, suggests the new platform, currently being beta-tested with select content creators, is akin to "Instagram for your thoughts". It aims to integrate with existing platforms, including Mastodon, and allow users to carry over Instagram accounts and followers seamlessly.

More:

• Meta's app is said to be almost identical to Twitter with a dash of Instagram aesthetics.

• It's expected to be a decentralized application syncing with current Instagram parameters.

• Text updates will be capped at 500 characters, and users can post links, photos, and videos up to five minutes long.

• No official name for the service yet; internally referred to as Barcelona and P92.

_{Tags: #Meta, #Twitter, #AI, #Privacy, #Regulation}

Read more about it at —> (read time: 6 minutes)

Insight:

This move by Meta will likely create an industry-wide ripple effect in the microblogging sector. We're witnessing a competition not just for users but for controlling and disseminating information on the Internet. Given Meta's existing user base and the potential for integration across platforms, it's a significant development. However, the success of this new service will depend largely on how users respond, which is always an unpredictable variable. Whether or not this move will dethrone Twitter or serve as another voice in the cacophony of social media platforms remains to be seen.

[3] Apple Digs Deep into Generative AI, Set to Revamp iPhone Experience

Apple is ramping up its focus on artificial intelligence (AI), with a flurry of job postings indicating a strong push towards generative AI. A prominent listing for a Visual Generative Modeling Research Engineer suggests Apple's intent to use generative AI to transform mobile computing platforms. The company's AI thrust follows the rise of AI tools like ChatGPT and Google Bard.

More:

• Apple has posted 28 AI-related job opportunities this month, indicating significant investment in AI technology.

• The new roles imply Apple's serious approach towards generative AI, aiming to integrate it across their products.

• Apple acknowledges competition from OpenAI, Microsoft, and Google, and seems to be accelerating its AI initiatives in response.

_{Tags: #Apple, #AI, #Big tech, #GPT-4}

Read more about it at —> (read time: 6 minutes)

Insight:

This move by Apple is a significant shift on a company level and may have industry-wide effects given Apple's influence in the tech market. We see an increasing recognition of the transformative potential of generative AI in shaping user experiences, and Apple's proactive stance signals the growing strategic importance of AI in product differentiation.

Moreover, technological advancements are leading to AI models becoming smaller and more efficient, making it increasingly possible for these models to run directly on devices without needing cloud support. This is a potential game-changer, particularly for a company like Apple, which has a broad ecosystem of devices in the hands of consumers worldwide. As AI becomes more decentralized, Apple could leverage this trend to deliver highly personalized and intuitive experiences right at the edge, providing them with a unique competitive advantage.

The implications could be profound: successful integration of advanced AI features into Apple's ecosystem could redefine the interaction between humans and their devices, driving competitors to follow suit. However, the tangible impacts on the end user and how swiftly Apple can translate this intent into action remain to be seen.

[4] Massive Layoffs at Meta Begin Next Week: Tech Giant's Plan for "Efficiency"

Meta is set to commence its next phase of mass layoffs beginning next week, as revealed by company executives during a recent Q&A with employees. The cuts, which could affect thousands of roles within Meta's business departments, are part of Mark Zuckerberg's "year of efficiency" strategy. This announcement follows Zuckerberg's previous declaration of more layoffs slated for May.

More:

• These layoffs mark Meta's third wave of cuts, affecting various business teams.

• Meta previously slashed 4,000 roles from its tech departments in April and aims to eliminate 10,000 positions by the end of May.

• By the end of 2022, the tech giant, parent company to Facebook, Instagram, and WhatsApp, had approximately 86,000 employees.

• Despite Wall Street's positive reaction, company morale has reportedly taken a hit due to the recent rounds of layoffs.

_{Tags: #Big tech, #Meta, #Layoffs}

Read more about it at —> (read time: 6 minutes)

Insight:

This news is significant at the company level and could potentially impact the tech industry as a whole. We see a trend where major tech companies, such as Meta, are streamlining their operations in response to the post-pandemic shifts in the industry. This wave of layoffs, a part of Meta's plan for "efficiency," is one of the most dramatic instances of belt-tightening in tech companies that had been on a growth spurt during the pandemic.

The layoffs highlight these tech giants' challenges in balancing employee morale and business efficiency. While financial markets may react positively to cost-cutting measures, the potential decrease in innovation and productivity, combined with a possible dent in Meta's reputation as an employer, could offset these gains. Looking forward, how Meta manages these consequences will be of keen interest to stakeholders in the tech industry.

[5] Montana's TikTok Ban Slapped with Legal Action: State Accused of Overstepping First Amendment Rights

Immediately following Montana's state-level ban on TikTok, five influential TikTokers filed a lawsuit, arguing the ban as "unconstitutional" and overstepping federal law. The suit states that Montana's justifications for the ban – protecting minors and countering foreign spying – are insufficient grounds for the blanket prohibition, asserting it infringes on First Amendment rights.

More:

• The lawsuit contends that Montana's ban is an overreach and infringes on First Amendment rights by suppressing more speech than it may permissibly regulate.

• The TikTokers argue that the state is unlawfully stepping into matters of foreign policy and national security, traditionally the domain of the federal government.

• State Attorney General Austin Knudsen, who backed the ban, is the target of the lawsuit. Montana is prepared to defend the ban, according to a spokesperson.

_{Tags: #Big tech, #Regulation, #TikTok, #Privacy}

Read more about it at —> (read time: 7 minutes)

Insight:

This news brings to the forefront the tension between local regulation and global digital platforms, which impacts tech companies, users, and regulators. We are looking at a significant local event with potential implications for other jurisdictions considering similar actions.

Tech entrepreneurs and investors should closely monitor this situation. If upheld, this ban might inspire other states or countries to enact similar restrictions, thereby disrupting the operational landscape for global tech platforms. On the other hand, if overturned, it would be a triumph for digital platforms asserting their rights against local restrictions. As we continue to grapple with the challenge of regulating global tech within local legal frameworks, this case is likely to serve as a precedent.

⚡️Startup bites

Brief news summaries from the world of startups that provide quick and easy-to-consume information.

Twitter's owner, Elon Musk, has leveled accusations against Microsoft for misuse of Twitter's data. Musk's legal counsel has called for an audit from the tech giant, citing multiple alleged infractions, including exceeding the reasonable request volume and potentially violating agreement stipulations concerning governmental entities. These allegations could herald a more significant conflict over AI data usage rights. (link)

Meta Platforms has agreed to pay $37.5 million to settle a class-action lawsuit accusing Facebook of tracking users' locations even after disabling location services. (link)

Meta has announced the development of an in-house AI chip, aiming to boost its AI capabilities and reduce reliance on other companies, with expected launch in 2025. X (link)

The world's largest ad buyer has downgraded Twitter's status from 'high risk', indicating increased confidence in the social media platform. (link)

Meta is reportedly negotiating a multiyear deal with Magic Leap for IP licensing and North American manufacturing of Meta's augmented reality products. (link)

Neeva, the user-centric search engine, announced it will be shutting down its consumer search product due to an inability to create a sustainable business model in the consumer search market. Despite overcoming technical challenges and integrating AI into their search system, Neeva faced difficulties in persuading users to switch from their default search engines. Neeva will now focus on new opportunities that leverage their expertise in search and Language Learning Models (LLMs). (link)

🔍 Extra

A mix of learning links, software products, deals, and other interesting content.

Meta Takes a Leap with Open Source AI: A Calculated Risk or a Dangerous Precedent?

In a significant departure from its peers, tech behemoth Meta has released its AI chatbot technology, LLaMA, as open-source software, giving developers the power to create their own chatbots. However, this move has sparked concerns among other tech companies, such as Google and OpenAI, who have labeled it a risky gamble in an increasingly privacy-focused digital landscape.

More:

• Meta’s Chief AI scientist, Yann LeCun, stated that the platform that will emerge victorious will be an open one.

• Meta’s move contrasts with the cautionary approach of Google and OpenAI, who are worried about misuse of AI chatbots to spread disinformation.

• Critics believe the open-source model could enable the spread of false and misleading information, as evidenced by the system leak onto 4chan soon after LLaMA’s release.

• Meta’s stand is backed by their belief that governments and consumers will reject AI controlled by a few powerful corporations.

• LLaMA is a large language model that learns to generate text by analyzing enormous volumes of digital data, a task that usually requires significant resources.

Read more about it at —> (read time: 18 minutes)

Tableau CPO Shares Strategies for Thriving in Economic Uncertainty"

Tableau's Chief Product Officer, Francois Ajenstat, shares his strategies for navigating economic uncertainties, grounded in the organization's value propositions. These include leaning on a strong value proposition, skill leveraging rather than just technology, and maintaining curiosity.

More:

• Emphasizes on the need to clarify value propositions even during challenging economic times

• Stresses the importance of empowering teams and skill utilization

• Encourages curiosity and a willingness to experiment and learn

Read more about it at —> (read time: 7 minutes)