šŸ¢ Tech Job Recession Ends

Today: No More Tech Job Recession | OpenAi's New Acquisition | Fed Chills Market

Author

Kristoffer Lindstrƶm
August 17, 2023

Partner

Hey there!

It's Thursday, August 17, and we've got some exciting headlines to dive into today:

  • Tech Job Recession Ends

  • NYC Ousts TikTok from Devices

  • OpenAI Buys Global Illumination

  • Snapchat AI Glitch Stirs Users

  • Fed's Concerns Drop Stocks

  • iPhone 15's USB-C Mystery

  • and more...

READ TIME: 4.4 MINUTES

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Tech Companies

After tracking monthly tech layoffs for a year, Bernstein Research analysts have retired their data series. The latest update showed 4,937 job cuts in August. Compared to the first half of 2023 with over 300,000 layoffs, this is a significant decrease. The rise of AI startups, such as OpenAI, has contributed to limiting job losses, with these companies raising billions and hiring extensively. Major firms like Meta and Amazon, which previously initiated layoffs, are now rehiring several of their former employees.

Intel has canceled its $5.4 billion acquisition of Israeli chipmaker Tower Semiconductor after China's antitrust regulators didn't approve before the set deadline, despite the merger's clearance in the U.S. and Europe.

Amazon.com Inc. will charge a 2% fee from October on third-party sellers who handle their own shipping. This is in addition to the typical 15% commission they already pay for listing on Amazon's platform.

New York City has banned TikTok from all city-owned devices, citing security threats. The decision, effective immediately, follows a review by the NYC Cyber Command and aligns with federal guidelines and legislation.

Startup Scene

ClassWallet, leading in public funds management, obtains $95 million from Guidepost Growth Equity and others. The Miami firm's tech streamlines public fund allocation across 32 states.

Helm.ai, pioneering next-gen AI for autonomous driving, secured $55 million in Series C funding, reaching a total of $102 million raised. Investment leaders include Freeman Group, with contributions from Honda Motor, Goodyear Ventures, and others. The funding will boost R&D and expand commercial partnerships.

AI Corner

The UK government plans to host an AI safety summit in November at Bletchley Park. Invitations will be extended to "like-minded" nations, prominent AI firms such as Google's DeepMind, Microsoft, OpenAI, and Anthropic, and leading academics. Discussions will center around global AI threats to democracy, including its use in warfare and cyber security. This gathering aims to promote international action on AI regulation and bolster the UK's tech prowess, with notable locations Cambridge and Oxford in proximity.

OpenAI, renowned for ChatGPT, acquired New York AI startup Global Illumination, known for creative AI tools and digital infrastructure. This marks OpenAIā€™s inaugural public purchase. Global Illumination, backed by leading VC firms, previously contributed to Instagram, Facebook, YouTube, and others. The acquisition intends to bolster OpenAIā€™s core products.

Quick

Snapchat's My AI feature posted its own Story and halted user responses, sparking user concerns.

Google develops generative AI chatbots for 21 tasks, including life coaching, writing plans, and tutoring. This move, contrasting Google's previous advice against using Bard chatbot for life advice, includes handling sensitive user info.

Markets & Money

US stocks declined after Federal Reserve meeting minutes revealed officials are still concerned about inflation potentially leading to more interest rate hikes. Despite July's rate increase, the Fed maintains that inflation remains a significant concern

Cisco Systems reported a fiscal fourth-quarter net income of $4 billion on a revenue of $15.2 billion, up from $13.1 billion a year prior. However, their cautious full-year forecast for 2024, expecting revenues between $57 billion to $58.2 billion, influenced a decline in after-hours share prices.

Tencent reported Q2 profits below expectations despite cost-cutting benefits and rising sales in diverse sectors. Revenues touched 149.21 billion yuan, an 11% increase YoY, but short of the anticipated 151.73 billion yuan. Profits reached 26.17 billion yuan, marking a 41% YoY surge.

Federal Reserve officials expressed concerns over inflation's pace and foresee potential future rate hikes unless economic conditions change. While the recent increase took the federal funds rate to its highest in 22 years, there's uncertainty over the policy's future direction.

Apps & Gadgets

Apple starts dispersing $65 payouts from the 2018 'Batterygate' class action lawsuit over intentionally slowing iPhones. Despite appeals and Apple's denials, the 9th Circuit Court finalized the case, leading to this resolution.

Leaked USB-C connector assemblies for iPhone 15 reveal a mystery '3LD3' chip on the ribbon cable. Contrary to online speculations, this chip is linked to "transmission encryption" and facilitates secure communication between Apple and licensed third-party vendors.

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