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- Tyler Perry puts $800M investment on hold due to Sora AI, Reddit IPO goes forward, with Altman as the 3rd largest shareholder and new Google $60M deal to harvest user data
Tyler Perry puts $800M investment on hold due to Sora AI, Reddit IPO goes forward, with Altman as the 3rd largest shareholder and new Google $60M deal to harvest user data
Sorin Ciornei
February 23, 2024
Welcome, AI enthusiasts
Tyler Perry puts $800M investment on hold due to Sora AI, US Justice Dept names first AI Officer, Reddit IPO goes forward, with Altman as the 3rd largest shareholder and new Google $60M deal to harvest user data
In today’s newsletter:
Tyler Perry Puts $800M Studio Expansion on Hold After Seeing OpenAI’s Sora: “Jobs Are Going to Be Lost”
Wayfair CEO says laying off workers has turned out great
Tech and outsourcing companies continue to exploit the H-1B visa program at a time of mass layoffs
US Justice Dept names first AI officer as new technology challenges law enforcement
Intel CEO Pat Gelsinger blown away by AI boom: ‘It’s just magic the way these tiny chips are enabling the modern economic cycle’
Interview with Article Fiesta’s founder
NEWS OF THE DAY
illustration in the style of Percy Tarrant of tyler perry
What: The actor, filmmaker and studio owner is raising the alarm about the impact of the tech, saying, "I feel like everybody in the industry is running a hundred miles an hour to try and catch up, to try and put in guardrails."
Key points:
🚨 Tyler Perry puts $800M studio expansion on hold due to concerns about OpenAI's Sora impact on Hollywood.
🤖 Perry is alarmed by the capabilities of Sora, specifically its text-to-video model, which can generate cinematic outputs.
🎬 The AI technology could eliminate the need for physical sets and location shoots, raising concerns about job losses in various industry roles.
💼 Perry acknowledges the business opportunities but emphasizes the need for industry-wide regulations to protect workers from potential job displacement.
Noteworthy: This comes also at a time where debt is increasingly expensive, industries are under pressure to transform and new technologies like Sora paint a bleak future for traditional business models.
EDITORIAL
What: The risk for the labor market is that once these technologies and solution move up the maturity curve, more and more skills will be replaced. What if the demand for specific skill sets could be fulfilled effortlessly, akin to a click – “Skills as a Service” (SaaS)?
Key points:
Generative AI threatens jobs: It automates tasks, even complex ones, potentially replacing many skills previously considered irreplaceable.
Shifting labor mobility: Countries may need fewer skilled immigrants as AI fills skill gaps.
Education in flux: Focus may shift from specific STEM topics to broader analytical skills and adaptability.
STEM skills at risk: Automation might render some STEM skills obsolete, requiring continuous learning and upskilling.
Noteworthy: If generative AI can build a marketing plan and execute on it in one day, instead of months, why bother creating project plans and scheduling tasks in a way that make sense?
LATEST NEWS
📉 Wayfair CEO Niraj Shah, along with co-founder Steve Conine, stated in a letter to shareholders that multiple rounds of layoffs over the past year-and-a-half have made the company more efficient and cost-effective.
📉 Wayfair laid off 13% of its global workforce in January 2024, affecting 1,650 employees. Previous layoffs occurred in January 2023 (1,750 employees) and August 2022 (870 employees).
🥷 The layoffs were part of an organizational redesign exercise, aiming to achieve efficiency gains. Wayfair's leaders believe that these measures have led to increased productivity and faster execution of tasks.
🌐 The H-1B visa program, intended to fill labor shortages, is being exploited by tech and outsourcing companies.
💼 Top 30 H-1B employers hired 34,000 new workers in 2022 but laid off at least 85,000 workers in 2022 and early 2023.
🎯 H-1B use is concentrated, with top 30 employers accounting for 40% of the annual cap.
🇺🇸 The U.S. Justice Department appointed its first chief AI officer, Jonathan Mayer from Princeton University.
🧠 Mayer will serve as the chief science and technology adviser, focusing on the transformative effects of AI on federal law enforcement.
🌐 The department aims to keep pace with evolving scientific and technological developments to uphold the rule of law, ensure national safety, and protect civil rights.
💡 Intel CEO Pat Gelsinger envisions a surge in demand for AI-equipped chips, referring to it as the "Siliconomy."
🌐 Intel is aiming to catch up to Nvidia by committing to the business of making chips for other firms and investing $20 billion in new factories.
📈 Despite efforts, Intel's stock price has fallen under Gelsinger's leadership, while Nvidia's shares have increased significantly.
🌍 Intel predicts overseeing the world's second-largest foundry business by 2030, primarily meeting the demand for AI chips.
OpenAI’s Sam Altman revealed as one of Reddit’s biggest shareholders, controling 8.7% of Reddit's stock, making him the third-largest shareholder.
The Reddit IPO appears set to move forward, with the tech platform filing its form S-1 with the Securities and Exchange Commission on Thursday. We also learned Google will pay $60M a year to harvest all the data from Reddit users to train Gemini.
We’ve recently done an interview with an exciting AI startup.
This is for all the SEO or content creators, from Article Fiesta - autoblogging with AI. Amazing features, create articles with tables, charts, images, SEO optimized and internal links tailored to your brands voice. If you are in ecommerce, check it out! Read the full interview here.
MIDJOURNEY PICK OF THE DAY
photography in the style of Elena Kulikova of a digital holographic assistant
Check out our guides on how to generate the best Midjourney pictures, from fashion, nature, street art or illustration.