📉 Meta Just Lost 87% On...

What’s in today’s Business Edge update?

Microsoft is setting the AI world ablaze with comprehensive enhancements unveiled at Build 2023! Meanwhile, Meta is licking its wounds after being forced to sell Giphy to Shutterstock at a whopping 87% loss.

In other news, Apple just went all in with a multi-billion dollar Broadcom deal for cutting-edge wireless components. Meanwhile, AI startup Anthropic raise with a hefty $450M funding round led by Google.

Let's dive in, shall we?

🌐 Big Tech Digest

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

[1] AI Takeover: Microsoft Ignites the AI Scene with Sweeping Upgrades at Build 2023

Microsoft Build 2023 was a focal point for AI innovation, with major announcements centered around Artificial Intelligence integration across multiple platforms. The company showcased how it’s harnessing AI capabilities for its offerings, including Windows 11, Microsoft 365, and Edge, with the spotlight on Copilot, its AI personal assistant.

More:

• Windows 11 welcomes AI Copilot, living within the taskbar and providing text summarizing, rewriting, and explaining capabilities.

• Microsoft 365 Copilot introduces support for plug-ins, including Teams message extensions and Power Platform connectors.

• Microsoft Edge will soon integrate 365 Copilot into its browser sidebar, aiding in various Microsoft 365 app-related tasks.

• Windows Terminal receives an AI chatbot through GitHub Copilot integration.

• Bing becomes the default search experience for ChatGPT, with upcoming plug-in support for services like Expedia, Instacart, Kayak, and more.

• Microsoft introduces a new developer platform, Microsoft Fabric, enabling access to insights using generative AI.

_{Tags: #AI, #Microsoft, #Windows11, #Microsoft365, #Edge, #GitHub, #ChatGPT, #OpenAI, #Bing, #DeveloperTools}

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

Insight:

This news marks a high impact at the Industry-wide and Company levels. Microsoft is investing heavily in AI to make its apps and services smarter and more user-friendly. This move not only transforms the tech giant's own product ecosystem but also impacts the industry at large, pushing competitors to innovate and adopt AI more aggressively. Moreover, developers and users across Microsoft's platforms will benefit directly from these enhancements, reshaping the way they interact with software. The use of AI, particularly the integration of ChatGPT, represents a significant step in the ongoing evolution of interactive and autonomous systems, pointing to a future where AI is even more deeply woven into our everyday digital experiences.

[2] Meta Offloads Giphy to Shutterstock at 87% Loss Following UK Antitrust Ruling

Following the UK’s Competition and Markets Authority (CMA) mandate, Meta has agreed to sell Giphy, the animated GIF search engine it acquired for $400M three years ago, to Shutterstock for a mere $53M. This divestiture recoups only 13% of the original investment. Shutterstock aims to close the deal next month while ensuring continued access to Giphy’s content for Meta's product suite.

More

• Meta was required to sell Giphy intact rather than dismember it for piecemeal sales.

• The divestment process started when CMA issued its final order earlier this year.

• Giphy must be maintained as a GIF search engine by the buyer.

• Meta's previous attempts to appeal the CMA order have been dropped.

• This sale follows the CMA's decision to block Microsoft's Activision acquisition.

_{Tags: #Meta, #Antitrust, #Regulation, #M&A, #Shutterstock}

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

Insight:

This news illustrates an increasingly stringent regulatory landscape, especially in the UK, where authorities are displaying a tough stance against Big Tech M&A activities. The significant financial hit to Meta and the forced divestment of Giphy signal a likely market impact, raising the stakes and potential risks for future tech acquisitions. Moreover, the loss for Meta impacts the company directly, while the wider tech industry could also be affected by stricter regulatory scrutiny. Ultimately, tech investors should heed these shifts and reassess risk profiles associated with potential M&A.

[3] Apple Commits to Multi-Billion Dollar Deal with Broadcom for Advanced Wireless Components

Apple Inc. has signed a multi-year deal worth billions with Broadcom Inc., a long-time supplier, to design and produce advanced wireless components, including those for 5G network connections. The agreement includes production of FBAR filters used in blocking radio interference and will support over 1,100 jobs at a Broadcom facility in Colorado.

More:

• Broadcom will manufacture the FBAR filters at a plant in Fort Collins, Colorado.

• Broadcom supplied about 20% of its $33.2 billion revenue to Apple last year.

• Apple is reportedly planning to replace Broadcom's Wi-Fi and Bluetooth chips with its own by 2025.

• The deal is part of Apple's plan to invest $430 billion in the US economy over five years.

_{Tags: #Apple, #Broadcom, #5G, #Wireless}

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

Insight:

The multi-billion-dollar deal between Apple and Broadcom marks a significant industry-wide development, as it could influence competitive dynamics in the wireless component market. While this indicates Apple's continued reliance on Broadcom's expertise, it also reveals Apple's intentions to eventually bring some of these capabilities in-house, which can be seen as a strategic move to gain greater control over its supply chain and further innovate. This dual strategy, relying on both external suppliers and developing internal capabilities, can serve as a valuable lesson for other tech companies aiming for a robust and flexible supply chain management.

[4] AI Startup Anthropic Raises $450M in Google-Led Funding, Hits $1B in Total Investments

AI startup Anthropic has secured $450 million from investors, including Alphabet Inc's Google and Spark Capital, bringing its total funding close to $1 billion. One of the most well-funded AI startups, Anthropic is developing AI foundation models, competing with OpenAI and Cohere. Despite the company not disclosing its valuation, sources estimate it to be around $5 billion.

More:

• Anthropic's AI foundation models require minimal fine-tuning and can be used for diverse tasks.

• Anthropic, OpenAI, and Cohere are competing to develop large models which require substantial computing power.

• Anthropic, founded by ex-OpenAI executives, assures safety in its AI systems.

• Zoom plans to integrate Anthropic's models into its video-conferencing platform.

• Other investors in the latest funding round include Salesforce and Sound Ventures.

_{Tags: #Google, #AI, #Startups, #Venture capital, #Anthropic}

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

Insight:

This substantial investment in Anthropic is not just a big win for the company but also holds industry-wide significance. As one of the leading firms in AI foundation model development, Anthropic's progress could shape the future of AI and determine the level of fine-tuning required for AI systems. Furthermore, we are witnessing a rise in strategic alliances between tech giants and startups in the AI domain, as evident from Zoom's plans to integrate Anthropic's models. This trend could potentially lead to more collaborations, driving innovation in the sector while also encouraging startups to push the boundaries of AI technology.

⚡️Startup bites

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

Bard launches a new feature providing image responses, adding visual engagement to its offering. (link)

Netflix enforces password sharing restrictions in nine European countries, hoping to boost growth and offset missed new subscriber targets in Q1 2023, despite potential user fallout. (link)

Tesla is expected to announce its new factory location by the end of the year, with India being a strong possibility due to CEO Elon Musk's enthusiasm and recent government interactions. (link)

Microsoft's acquisition of Activision Blizzard gets a green light from China's State Administration for Market Regulation, despite suspensions and ongoing controversy in the UK and the US. (link)

🔍 Extra

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

Constructing Unassailable AI Fortresses in the GPT-4 Era

SaaS companies stand to benefit from recent advancements in AI, such as GPT-4, if they adapt quickly and strategically utilize AI capabilities. While adding AI features to a product does not necessarily strengthen its competitive position, possessing proprietary data and using it to enhance model performance can build a strong AI moat. Meanwhile, early AI adopters may either have a significant advantage or see their tech value diminish, depending on their field.

More:

• AI features are not a competitive moat but can add value to a product.

• Proprietary data is essential for creating a substantial AI moat.

• Early adopters of AI may experience significant advantages or disadvantages, depending on the industry.

• The future of AI depends on balancing general AI performance and specific domain skills.

Read more about it at —> (read time: 9 minutes)

2023: The SaaS Landscape Returns to Roots; Sales and Competition Intensify

The Software as a Service (SaaS) sector in 2023 experienced increased difficulty for the first time since 2005, primarily due to tightened budgets and intensified competition. Despite these challenges, the SaaS market is still expanding, with a predicted growth of 18% in 2023, according to Gartner.

More:

• Budgets have tightened, prompting sales and approval processes reminiscent of earlier SaaS years.

• Competition has intensified, putting pressure on SaaS companies that have only experienced the boom times.

• Despite the changes, the SaaS market is predicted to grow 18% in 2023 and again in 2024.

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