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Weekly tech roundup: Vertical AI: Poised to Eclipse Legacy SaaS, Spark New Enterprise Revolution
The most impactful tech stories of the past week.
Kristoffer Lindström
August 16, 2024
FROM FRONT
Hey tech enthusiasts!
I hope you're all doing great! Just a heads-up: this is our final weekly roundup because we'll be switching to daily updates starting next Monday. Stay tuned!
Cheers, Kris
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TECH BRIEF
Large Language Models (LLMs) are driving the rise of vertical SaaS, developing into a new wave of businesses targeting industries once thought unattainable. Vertical AI applications, offering solutions for high-cost, repetitive language tasks, are predicted to grow 10x larger than the legacy Vertical SaaS market. These applications, such as EvenUp, can automate tasks previously dependent on human labor, creating efficiencies and alleviating cost burdens. Three new business models - Copilots, Autopilots and AI-enabled Services - have emerged, with early signs promising accelerated growth and an increase in enterprise value.
💡 Insight: The rise of Vertical AI is poised to reshape the economy by automating high-cost, repetitive language tasks across numerous sectors, potentially dwarfing legacy SaaS. Early evidence suggests significantly higher efficiency and market capture, with predictions of multiple Vertical AI firms exceeding $100M ARR and IPOs within three years.
Meta, which includes Facebook and Instagram, has announced an expanded multi-year global agreement with Universal Music Group (UMG) tentatively embracing AI and further monetization. While the deal's specifics remain undisclosed, it seeks to protect human creators, proffer fair compensation, and tackle unauthorized AI-generated content that could impact artists and songwriters. This agreement builds on UMG's 2017 partnership with Facebook, amplifying commercial opportunities on various platforms, including WhatsApp.
Elon Musk's company, xAI, launches an advanced AI program, Grok-2, along with a mini version. The AI, currently in beta for X network's premium members, can generate images. The capabilities of Grok-2 extend to chat, coding, and reasoning, offering greater frontier capabilities than its predecessor. However, there's no control over image generation, raising concerns over misuse. xAI plans to enable both models for developers later this month and expand AI-driven features on X, including search, analytics, and replies.
Apple is slated to provide open access to the iPhone’s NFC chip for third-party contactless payments, independent from Apple Pay and Apple Wallet, via Secure Element in iOS 18.1. Developers will have the capacity to provide in-app contactless transactions for a variety of uses leveraging NFC and SE APIs. Users can also set a third-party app as their default contactless app. The feature will be introduced in seven countries, including the United States and Japan.
TikTok has introduced group chats, allowing users to create groups with up to 32 people. The endeavor marks a shift towards becoming a social and conversational platform beyond mere entertainment. The option is limited to users over 15, with added measures to protect 16-17 year olds. Additionally, TikTok is also introducing custom stickers in DMs to encourage user interaction.
After a federal jury found Google's Android app store to be an illegal monopoly, Judge James Donato has concluded the final hearing on the case. Undetermined remedies include forcing Google to open its store to rivals and ensuring that Google does not have gatekeeping authority over third-party apps. The final ruling is due in two weeks.
Tencent's Q2 revenue soared by 8% to $22.5 billion, following successful launch of Dungeon & Fighter Mobile. Its growth also propelled by the WeChat app, positions Tencent favorably against rivals Alibaba and JD.com.
Apple has approved Spotify's application, which incorporates EU pricing. Music streaming enthusiasts can now enjoy their favorite tunes on the Spotify app without navigating through regional price variations.
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Adyen's H1 Net Revenue Surges 24%, Outshining Analyst Predictions - Adyen NV reported a 24% surge to €913.4 million in first-half net revenue, landing above the expected €908.9 million, thanks to new clients and heightened merchant transactions.
EliseAI Secures $75M to Advance AI Property Management Tools - EliseAI has secured $75 million in a Series D funding round, valuing the AI-powered property management startup at $1 billion. The company also plans to expand into the healthcare sector.
Balderton Capital Secures $1.3Bn, Bolstering European Tech Start-ups - Revolut investor, Balderton Capital, has raised the largest ever European venture fund of $1.3bn. The London-based VC, solely backing European tech startups, recently closed two new funds valued at $1.3bn.
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