Tech Titans Converge in Washington: A Historic Meeting on AI Regulation

Alice Blake on September 14, 2023

A Gathering of Tech Industry Icons and Lawmakers

In a significant development for the tech industry, renowned figures like Bill Gates, Elon Musk, and Mark Zuckerberg converged in Washington to discuss the future of AI regulation. This high-profile meeting comes as the US Senate gears up to draft legislation aimed at regulating the rapidly advancing artificial intelligence sector.

A Diverse Guest List and Unprecedented Congressional Effort

Among the attendees were CEOs from major tech companies, including Anthropic, Google, IBM, Meta, Microsoft, Nvidia, OpenAI, Palantir, and X (formerly Twitter). The event also featured Bill Gates and Eric Schmidt, former CEOs of Microsoft and Google, respectively. Notably, it brought together leading figures from the entertainment industry, civil rights groups, and labor organizations.

A Pledge for Comprehensive AI Regulation

This meeting marked the first of a series of nine sessions hosted by Senate Majority Leader Chuck Schumer, signifying an ambitious congressional effort to establish comprehensive AI regulations. Schumer emphasized the need for transparency and the urgency of addressing AI’s potential impact on various aspects of society.

AI’s Disruptive Potential and Varied Industry Proposals

Policymakers are increasingly recognizing the disruptive potential of AI, particularly generative AI like ChatGPT, which has implications for commercial productivity, employment, national security, and intellectual property. Several tech giants have already proposed their approaches to AI oversight, but differences exist, including the need for a new federal agency to regulate AI.

Insights into Lawmakers’ Perspectives

This gathering offers insights into the range of opinions among members of Congress concerning AI regulation. Key topics include transparency, intellectual property protection, and algorithm explainability. Understanding these perspectives is crucial in shaping the future of AI policy.

Tech Companies’ Role and Public Concerns

Tech executives like OpenAI CEO Sam Altman have advocated for early AI regulations, distinguishing themselves from the social media industry’s resistance to regulation. However, civil society groups have voiced concerns about AI’s potential dangers, including discrimination and copyright issues.

Ensuring a Democratic and Inclusive Process

Maya Wiley, President, and CEO of the Leadership Conference on Civil and Human Rights, emphasizes the importance of a democratic, inclusive, and balanced process in shaping AI regulations. Representation of underrepresented groups is seen as crucial in achieving a fair and effective outcome.

Legislative Efforts and EU Comparison

Senate Majority Leader Schumer’s personal involvement highlights the unique challenge AI poses for congressional leaders. His proposed framework prioritizes innovation while safeguarding democracy, national security, and consumer understanding of AI. The US is lagging behind the European Union, which is working on comprehensive AI legislation.

Critics and Alternative Legislative Proposals

Not all senators are optimistic about the meeting’s outcomes. Senators Blumenthal and Hawley criticized the process, suggesting that it may not lead to substantial legislation. They have introduced their own framework for regulating AI and stressed the importance of AI safety.

Calls for Transparency and Accountability

Despite the critiques, the meeting is a crucial step in the complex journey of regulating AI. It serves as a platform for diverse voices to contribute to the formation of AI policies that balance innovation, safety, and accountability.

MacBook updated chips coming in 2023

Alice Blake on September 5, 2023

MacBook: When Apple disclosed that buyers could choose between the M2 Pro and M2 Max CPUs for the new Macs on Tuesday, it was a momentous revelation.

For the Mac and MacBook, the two CPUs are Apple’s most powerful processors.

The M2 chips

Apple’s next-generation systems on the chips (SoCs), the M2 Pro and M2 Max elevate the performance.

With over 32GB of quick, unified memory, a 12-core CPU, and a 19-core GPU, the Pro expands the M2 architecture.

The M2 Pro features a 38-core GPU to double the unified memory bandwidth and 96GB of unified memory, while the Max expands on those features.

The CPUs include improved proprietary technologies such as a speedier 16-core Neural Engine and Apple’s powerful media engine.

The M2 Pro makes its debut in the Mac mini, while the M2 Max substantially enhances the performance and functionality of the 14-inch and 16-inch MacBook Pro.

“Only Apple is building SoCs like M2 Pro and M2 Max,” said Johny Srouji, the senior vice president of Apple’s Hardware Technologies.

“They deliver incredible pro performance along with industry-leading power efficiency.”

“With an even more powerful CPU and GPU, support for a larger unified memory system, and an advanced media engine, M2 Pro and M2 Max represent astonishing advancements in Apple silicon.”

The Mac mini

Faster speed, more unified memory, and cutting-edge networking are all features of the new Mac mini, which is more powerful and competent at an accessible price.

Additionally, the M2 model and the M2 Pro variant both support up to three monitors.

The Studio Display, Magic access, and the power and simplicity of MacOS Ventura are all included with the Mac mini.

Senior Vice President of Worldwide Marketing at Apple, Greg Joswiak, said:

“With incredible capabilities and a wide array of connectivity in its compact design, Mac mini is used in so many places, in so many different ways.”

“Bringing even more performance and a lower starting price, Mac mini with M2 is a tremendous value.”

“And for users who need powerful pro performance, Mac mini with M2 Pro is unlike any other desktop in its class.”

Additionally, Apple no longer manufactures or markets Mac minis with Intel processors.

The Mac Pro is the final computer with an Intel CPU installed.

Launch

Following Luca Maestri’s October caution, the M2 Pro and M2 Max chips, as well as the Mac mini, were released.

The revenues of the corporation will decrease yearly in the December quarter, according to Apple’s chief financial officer.

The reduction, meanwhile, may be the result of Apple not shipping the MacBooks in time for the holiday shopping season.

Apple released its fiscal fourth-quarter results in October, and both its earnings and sales per share exceeded Wall Street forecasts.

The tech giant fell short of revenue projections in key product categories, including the iPhone business and services.

As many buyers continue to struggle with inflation, the upgraded Macs will be introduced into an unpredictable economic environment.

Given the continued recessionary anxieties, most consumers have likewise grown more thrifty with their spending.

Earnings report

Apple will release its earnings report at the end of the month.

The tech titan posted December quarter sales of $10.85 billion in the last year, a 25% increase over the same period the previous year.

The firm at the time declared its highest quarterly revenue ever as sales increased over 11% despite pandemic-related consequences and supply chain interruptions.

Pricing

On Tuesday, prospective buyers can place pre-orders for Apple’s updated goods, which will go on sale on January 24.

The M2 chip-equipped Mac mini will cost $100 less than the $599 pricing of the last model.

The M2 Pro model, however, will cost $1,299.

The price of the new 14-inch MacBook Pro is $1,999.

Last but not least, the 16-inch MacBook Pro variant will cost roughly $2,499.

References:

Apple announces new Mac mini, MacBook Pro with M2 Pro and M2 Max chips

Apple introduces new Mac mini with M2 and M2 Pro – more powerful, capable, and versatile than ever

Apple unveils M2 Pro and M2 Max: new-generation chips for next-level workflows

Silicon Valley Bank blame game commences

Jerry Cooper on March 16, 2023

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Silicon Valley Bank – The initial shock of the SVB collapse has faded away, and the blame game has begun as people look for the guilty.

The tech industry is blaming Silicon Valley Bank CEO Greg Becker.

Many blame Becker for allowing the company to become the second-largest US financial disaster in history.

According to an alleged SVB employee, Becker publicly disclosed the bank’s financial difficulties before discreetly putting up financial backing to weather the storm.

The actions created the environment for the fear that led to people withdrawing their funds.

“That was absolutely idiotic,” said the employee. “They were being very transparent.”

“It’s the exact opposite of what you’d normally see in a scandal. But their transparency and forthright-ness did them in.”

The buildup

Greg Becker and his leadership team said last Wednesday night that they anticipated to produce $2.25 billion in cash from $21 billion in asset sales, resulting in a $1.8 billion loss.

SVB has made no firm pledges despite its best efforts.

The news shook Silicon Valley, where the bank has been a major lender to technology innovators.

Numerous business owners were terrified.

According to California regulator papers, several corporations withdrew $42 billion on Thursday, while Silicon Valley Bank’s shares fell by 60%.

As Silicon Valley Bank closed that day, it had a negative cash position of around $958 million.

“People are just shocked at how stupid the CEO is,” said the SVB employee.

“You’re in business for 40 years and you are telling me you can’t raise $2 billion privately? Get on a jet and fly to Kuwait like everyone else and give them control of one-third of the bank.”

While Silicon Valley Bank has yet to comment, CEO Greg Becker is claimed to have apologized in a video statement to employees.

“It’s with an incredibly heavy heart that I’m here to deliver this message,” said Becker.

“I can’t imagine what was going through your head and wonder, you know, about your job, your future.”

Hysteria

Silicon Valley Bank officials, according to Jeff Sonnenfeld, CEO of Yale School of Management’s Chief Executive Leadership Institute (CELI), deserve to be admonished for their “tone-deaf, failed execution.”

In a joint statement, Sonnenfeld and CELI’s research director, Steven Lian, stated:

“Someone lit a match and the bank yelled, ‘Fire!’ – pulling the alarms in earnest out of genuine concern for transparency and honesty.”

Sonnenfeld and Tian said it was unnecessary to disclose the $2.25 billion unsubscribed capital offering on Wednesday night.

They noted that Silicon Valley Bank had sufficient capital in excess of regulatory requirements.

They also said that the $1.8 billion deficit was unnecessary to reveal.

The one-two blow, according to Sonnenfeld and Tian, sparked a massive frenzy, culminating in a rush to withdraw deposits.

They went on to suggest that the bank may have spaced the statements by at least one or two weeks, which would have lessened the impact.

On Sunday, President Joe Biden’s administration announced a rescue plan for Silicon Valley Bank depositors.

Biden also announced that the US government will undertake an extensive inquiry of all parties involved in the SVB catastrophe.

He released a statement saying:

“I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.”

The Fed’s involvement

According to Jeff Sonnenfeld and Steven Lian, Jerome Powell, the Chairman of the Federal Reserve and Biden’s choice to lead the Feds, and his colleagues bear some of the blame.

“There should be no mistaking that Silicon Valley Bank’s collapse was a direct result of the Fed’s persistent and excessive interest rate hike,” they wrote.

They stated that the Fed’s attempts to keep inflation under control affected two things:

The value of the bonds Silicon Valley Bank was relying on for capital
The value of the tech startups SVB catered

Silicon Valley Bank, on the other hand, had more than a year to prepare for and deal with the problems.

The anonymous SVB employee called the bank’s manipulation of its balance sheet “stupidity,” casting doubt on the CEO and CFO’s strategy.

But nevertheless, the employee, who is also a Wall Street veteran, believes the bank’s downfall was the result of mistakes and “naivety” rather than illegal activity.

“The saddest thing is that this place is Boy Scouts,” they said.

“They made mistakes, but these are not bad people.”

Job cuts and hiring creates headache for US market

Jerry Cooper on February 23, 2023

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Job cuts – In the American market, some businesses are having trouble filling vacancies, while others are letting people go.

Many businesses have lately announced significant job cuts, including:

Amazon
Disney
Meta
Microsoft
Zoom

As a result, nearly 103,000 jobs were eliminated in US-based companies in January.

It is the largest employment layoffs, per a poll by the outplacement company Challenger, Gray & Christmas, to have taken place since September 2020.

However, businesses also added 517,000 new positions in January, which is more than nearly three times what analysts had predicted.

The rise in employment shows how fiercely competitive the job market is, particularly in fields like the service industry that were severely hurt by the outbreak.

The Covid legacy

Given the situation right now, it is more difficult for specialists to predict the US economy’s future course.

The strong consumer spending surprised experts, especially in light of the ongoing inflation and rising interest rates.

The most recent consumer spending is a part of the “legacy of strangeness” left by the Covid pandemic, said David Kelly, a well-known worldwide strategist.

The next nonfarm payroll will be released by the Department of Labor Statistics on March 3.

Wages

Researchers and economists warn that if wages don’t keep up with inflation, a number of factors might lead to more job cuts in other fields, including:

Strains on household budgets
High-interest rates
A savings drawdown

The Department of Labor Statistics recently released statistics showing that earnings for those employed in the hospitality and leisure industries rose in January.

The pay grew from $19.42 to $20.78 from the previous year.

“There’s a difference between saying the labor market is tight and the labor market is strong,” said Kelly.

Employers still have trouble attracting and keeping talent.

They face difficulties as a result of things like the requirement for staff childcare and possible rivalry from improved working conditions and salary.

Consumer impact

Consumer spending may decline if interest rates rise and inflation stays high, which might result in additional job cuts or less employment overall.

“When you lose a job, you don’t just lose a job,” said Aneta Marowska, a Jefferies chief economist. “There’s a multiplier effect.”

As a result, even if there are issues with tech corporations, less money may be spent on business trips.

If job cuts persist, consumers could be forced to rethink their spending on services and other things.

A reset

Companies who hired more people during the outbreak, when remote work and e-commerce had a bigger impact on consumer and corporate spending, have since made a significant number of job cuts.

Amazon reported the loss of 18,000 jobs in late 2022, when it had 1.54 million employees, roughly twice as many as it did in 2019.

Microsoft used similar strategies and lost 10,000 jobs, or 5% of its workforce.

At the end of June the previous year, the company had 221,000 employees, a huge increase from the 144,000 prior to the virus.

The tech sector is changing from a “grow-at-all-costs” industry, according to Michael Gapen, head of US economic research at Bank of America Global Research.

Airlines

While this is happening, other businesses are growing their workforces.

In 2023, Boeing intends to add 10,000 new employees, mostly in engineering and production.

Also, the company eliminated about 2,000 corporate positions, mostly in finance and human resources.

In anticipation of an increase in orders from customers like United and Air India, Boeing is expanding to strengthen the company’s ability to construct new aircraft.

Airlines and aerospace firms suffered early in the epidemic when traffic dried up; however, they are presently working to recover.

The capacity of airlines is now limited by the number of pilots available.

Demand for food and travel increased when pandemic restrictions were removed.

A shared struggle

Businesses of all sizes would need to increase wages in order to recruit and retain personnel.

Industries that experienced customer and other corporate backlash following job losses are now working to increase employee hiring.

To entice additional workers, Walmart is increasing its minimum salary to $14 per hour.

The Miner’s Hotel in Butte, Montana raised the hourly pay for housekeepers by $1.50 as a result of the high turnover rate.

Also, as tourism rises, concessionaires and airports are recruiting more staff members.

The Phoenix Sky Harbor International Airport organizes job fairs each month and provides employees with childcare assistance.

In the same period of 2019, Austin-Bergstrom International Airport expanded by 48%.

Furthermore, it leads to better incentives like:

$1,000 referral bonuses
Signing incentives
Retention incentives for referred staff

Similarly, the airport facilities representatives at Austin-Bergstrom International Airport currently make $20.68 per hour, up from $16.47 in 2022.

According to Kevin Russell, the airport’s deputy talent chief, Austin has a high cost of living.

Also, Russell saw a surge in staff retention.

Nonetheless, it has proven challenging to keep some roles open since employees might be able to find higher-paying jobs elsewhere that aren’t available 24/7, such as:

Electricians
Heating-and-air conditioning technicians
Plumbers

Businesses must invest time in training new hires before they can ramp back up, despite how easy it is to find new personnel.

Google shares dropped from presentation

Jeah Lorraine Adams on February 16, 2023

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Google – The race for AI technology has intensified since ChatGPT unveiled OpenAI in late 2022, leaving other tech firms in the dust.

Google in particular is lagging and has been working to catch up.

The company held an event on Wednesday to display Bard, an AI chatbot, to terrible consequences.

As a result, Alphabet, the parent company of Google, saw a decline of more than 7% in share price at the close of trade.

The news

On Tuesday, Microsoft showcased brand-new AI technologies on its Bing search engine.

Due to the event’s success, Google decided to emulate it.

Earlier that day, Google had confirmed the news of its Bard announcement and said that the AI technology will be made available over the coming weeks.

The presentation

Google executives spoke about Bard’s potential on Wednesday at the event.

In a presentation, the pros and cons of AI were discussed.

The company’s well-known language model, LaMDA (Language Model for Dialogue Applications), drives Bard.

Google said in a blog post on Monday that “trusted testers” will have access to chat technology before it is made more widely available.

Throughout the event, the company demonstrated upgrades to other products, such as Maps and Google Lens.

Despite its demonstration, Alphabet shares fell because investors had high expectations given Microsoft’s growing competitiveness.

AI update

On Tuesday, Microsoft’s Redmond, Washington, headquarters hosted an AI conference.

The event’s objective was to showcase AI-powered upgrades to Microsoft’s Bing and Edge browsers.

Bing has always trailed behind Google in terms of search engine usage, but advancements in AI may close the gap with conversational replies to inquiries.

Microsoft invested enormous sums in ChatGPT’s OpenAI technology, which served as the foundation for the advancements made to its products.

ChatGPT

ChatGPT is the name of the artificial intelligence software that is making waves online.

After its November release, it generated viral content in accordance to the given instructions.

But some analysts and Google employees are starting to question if the top search engine is falling behind in AI.

The company has also been focusing on AI for a long time.

After ChatGPT’s meteoric ascent to stardom, Google instituted an internal “code red” in an effort to hasten the creation of Bard and other products.

Additionally, after years away from the day-to-day management of the company, Google co-founders Larry Page and Sergey Brin decided to take control.

Microsoft gains

Although Google has been under more pressure as a result of Microsoft’s recent AI developments, many believe it will still be some time before Microsoft sees tangible advantages.

Brent Thill, a Jeffries analyst, said the following in a note on Tuesday:

“Search improvements will act as a tailwind to [advertising revenue long term], but it will take time to bring users back to Bing, and they will need a crowbar to pry away advertisers from Google.”

“We view these updates as the tip of the iceberg for MSFT’s AI capabilities, with the largest opportunities in enterprise use cases.”

The news that was presented during the Google event, according to Evercore analysts, would have progressed the company.

Stock drop

The lack of an increase may have caused the company’s stock price to decline.

Analysts assert that they believe the incident was a hurried and likely early demonstration of the artificial intelligence that Google has been developing for years.

Many believe Google’s AI technology is strong enough to compete on its own despite these limitations.

On Wednesday, analysts released a report that said:

“Leveraging its years of AI investment (which drove a near doubling of CapEx in 2018) and unparalleled scale, this should help the company defend its market position in the long run.”

Tag: Tech