🤔 Wiser! Recap #117: There's more of Generative AI than just GPT-4.
What's happening and what's coming next in tech, innovation and strategy.
Wiser! is a twice-weekly newsletter that makes sense of what’s going on in the tech economy; from BigTech to Emerging Tech, from Strategy to Innovation, from Trends to What’s Coming Next. Paying subscribers get extra content every week and full access to the Brand Strategy Collection of 250 consumer brands in emerging tech.
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There’s more to generative AI than GPT
Not only did OpenAI launch GPT-4 last week, but Midjourney, Microsoft and Google all launched new products and updates. I wrote my view on GPT-4 and OpenAI’s step change in the AI space last week. I’ve seen nothing that changes my POV, which is that GPT-4 is a big deal and we’re seeing the start of real-world utility (See BeMyEyes.)
The point is: OpenAI is not alone at creating real utility with AI. For example, the new AI in Google Workspace gives you the ability to drop a load of numbers and data into a spreadsheet and then, instead of writing formulas and macros, “asking” the spreadsheet to explain the data to you. Or get it to look at an email thread, extract the key points and summarise the whole thread, or even turn it into a presentation. All impressive stuff, although I suspect that we’re a long way from this being a trustworthy tool (would you bet your career on the output?) There may be a touch of hype, but the direction of travel, pace and promise is exciting.
Meanwhile, AI image generator Midjourney released V5 of its text to image system which allows users to create more photorealistic images, including, finally, accurate hands! Midjourney’s last iteration (V4) came in November and V5 represents a significant step up in image quality and accuracy.
And Microsoft unveiled Copilot, a new AI assistant for Office users to help with everyday tasks. Copilot has been described as an “omniscient version of Clippy.” Microsoft claims it can generate proposals from spreadsheet data, slide decks based on design criteria, and summarise Microsoft Teams meetings, among other features.
Here’s The Thing: both Google and Microsoft have launched their versions of AI as new features for their established office productivity tools (Word, Spreadsheets, Powerpoint.) But the logical conclusion is that these products are heading towards obsolecense. What’s the point of a using a spreadsheet if all you have to do is give the AI some data and ask it to make sense of it?
Are the US one step closer to banning TikTok?
It’s getting hot in the TikTok kitchen as calls to ban the app in the US continue. The latest calls are for Bytedance to divest TikTok and make it a standalone US business. Politically it suits the anti-China narrative but practically, it’s a non-starter. Here’s why:
The infrastructure and operations of TikTok are ingrained and tightly-tied to the Bytedance infrastructure. Removing the eggs from the Bytedance cake is easier said than done, just look at how much effort has been spent on relocating all US data to Texas, and that’s the easy part.
Bytedance’s valuation is down almost half of what it was two years ago. VCs and hedge funds who invested when the valuation was higher are not going to chose to take a haircut over this. Remember, 60% of Bytedance is owned by institutional investors (with the other 40% split between the founders and employees.)
Here’s The Thing: the anti-China TikTok narrative is fueled by concerns that TikTok is a surveillance machine for China. The DoJ is now investigating claims that ByteDance used TikTok to spy on US journalists. Last summer, Bloomberg reported that the Chinese government used TikTok accounts for “stealth propoganda.” The CCP may well be doing all these things. They probably are, who knows. But the idea that the CCP is doing anything that America is not is laughable. I stand by my 2023 prediction that TikTok will not be banned in the US, despite all the huffing and puffing.
Where are we with SVB?
So now it’s pretty clear what happened. Over the past three years, VCs pumped startup’s with cash that ended up on deposit at SVB. So much that deposits grew over 300% against an average for the banking industry of just 35%. This is why SVB turned to longer term investments because the bank ran out of startups to lend it back to. But then, as interest rates rose 19 times, the long term, low risk investments suddenly turned into unrealised losses. This spooked some of the VCs, notably Peter Thiel, and the same VC depositors created a run on the bank by wiping their money out sharpish.
Within in a couple of days, regulators acted quickly, reassuring depositors that no money would be lost. Shareholders didn’t get the same treatment, and why would they, but depositors and startups would be OK, no need to panic. Since then, SVB Financial Group, the parent company of Silicon Valley Bank, has filed for Chapter 11 bankruptcy protection and no startups have gone out of business.
Here’s The Thing: crypto has had a field day. In the run to safe havens, gold, Bitcoin and Ethereum are all up. Bitcoin was up over 20% in the three days after the SVB story broke. The reason is that crypto is looking like a safe haven right now. It’s immune from the hyperinflation that’s driving rising interest rates and, relatively speaking, looking like a stable asset class. It’s even led a renewed belief amongst the crypto-afficienado of Bitcoin hitting a $1 million! We’ll have to see about that one!
Wiser! Recap
Amazon is investing $10 billion to launch a satellite internet service. Project Kuiper as a critical part of its long-term growth strategy to expand into new markets, reduce it’s spend with other internet service providers and provide new services to customers. And you wouldn’t bet against them, Amazon have made a feature out of its ability to turn cost centres into revenue generating profits.
Talking of Amazon, as it becomes increasing clear that Amazon’s physical retail experience is going to be built around frictionless checkout technology, they’re facing a lawsuit in New York. The issue is that New York City requires businesses to post conspicuous signs if they're collecting customers' biometric information, such as their facial scans and fingerprints. Apparently, nobody told Amazon’s Go cashier less stores!
Spotify has incorporated AI into its’ biggest redesign since “going mobile”. The big shifts are towards video podcasts and removing decision making from users, ala TikTok. The thing is this: is it enough? Apple has a bigger music library and YouTube has more customers.
Thanks to a partnership struck with Microsoft in 2021 on the commercialisation of self-driving vehicles, General Motors is working to bring a "ChatGPT-like" voice assistant to its cars.
Microsoft is reportedly developing a self-custody crypto wallet for its Edge web browser. It’s a feature that already exists in the Brave browser (that I use) and will allow users to control their crypto assets without the need for extensions.
Jaguar Land Rover and chipmaker Nvidia are set to launch three autonomous vehicle hubs in Europe. The move is part of a long-term partnership agreed by the companies last year, which reflects the close relationships many automakers are building with the tech sector.
The stark contrast between how China and the United States approach teen addiction to social media is astounding. While China has taken strict measures to limit teen addiction to social media through its domestic app, the Western version continues to dominate children’s lives.
Nike is launching its first Nike Air Force 1 sneakers tied to NFTs.
French luxury house Hermes International has asked a Manhattan federal court to block artist Mason Rothschild from promoting or owning his "MetaBirkin" non-fungible tokens after a jury found they violate Hermes' trademark rights in its famous Birkin bags.
The Bank for International Settlements has developed a cross-border retail CBDC payment system. Called “Project Icebreaker,” the BIS have worked with the central banks of Israel, Norway and Sweden to publish a new report that outlines a model for a cross-border payment system between domestic CBDCs.
What's happening in Brand Strategy?
Samsung announced they was partnering with Google and Qualcomm to develop a pair of smart glasses, called Galaxy Glasses.
Alo Yoga teamed up with The Sandbox, a decentralised virtual world, to introduce a collection of digital Alo wearables.
Amazon speculation continues over its plans to launch an NFT marketplace.
L’Oréal Group's beauty brand, NYX Professional Makeup, has created a decentralised autonomous organisation, aka a DAO, for the beauty community.
Explore the use-cases of over 250 consumer brands in emerging technologies…
Wiser! Reading
🤖 Wiser! #117: GPT-4 | Silicon Valley Banking | Robots | Satellites | Strategies | Self-CheckOut
🤖 OpenAI releases GPT-4, its most powerful AI model yet
📉 Startups face uncertain banking landscape after Silicon Valley Bank collapse
🕙 Wiser! Tech: what's happening in tech this week 17/3/23
☕️ Brand Strategy: How Starbucks leverages machine learning to revolutionise the customer experience
🗣️ Five examples of consumer brand adoption of ChatGPT to drive customer engagement
🎙️ Episode #21: Anti-ageing technology, GPT-4, floatovoltaics, and a tech acronym quiz
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