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| Hi Insiders, Welcome to the Inside Tech newsletter. Here are today's top stories: - Microsoft and the FTC head to court to determine the $69B takeover of Activision Blizzard.
- Elon Musk and Mark Zuckerberg playfully agree to "cage fight."
- Twitter's new CEO helps restore relationship with Google Cloud.
And more. At the bottom, you'll find our quick hits of news, our events calendar, and our knowledge hub. You can also hit reply to this email and let us know which topics you'd like to see more (or less) of. Happy reading, Beth
p/beth-duckett | |
| 1 | | Starting today, Microsoft is facing a five-day court case against the Federal Trade Commission (FTC) over its $68.7B acquisition of Activision Blizzard. The CEOs of both companies, along with other executives, will testify in federal court to defend the deal against antitrust concerns. The outcome of the case, expected in the coming weeks, will likely determine the fate of the deal. More: - The FTC is seeking a preliminary injunction to temporarily halt the merger.
- If granted, it would stop the deal from closing before the government's antitrust case against it is heard later this year.
- It could also force Microsoft and Activision to extend the deal beyond the original termination date of July 18.
- If Microsoft fails to finalize it by then, it will have to pay Activision Blizzard $3B in breakup fees.
Zoom out: - The latest hearings, presided over by U.S. District Judge Jacqueline Scott Corley, will involve testimonies from Microsoft CEO Satya Nadella and Activision Blizzard CEO Bobby Kotick.
- The FTC argues that the merger would give Microsoft an unfair advantage and stifle competition, while Microsoft sees it as an opportunity to expand its gaming imprint beyond the Xbox console.
- Sony, a key rival, has been actively opposing the merger, providing evidence to regulatory bodies.
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| 2 | | The news: SoftBank Vision Fund, the Japanese giant's tech investment arm, is planning further layoffs after cutting its workforce by 30% last year. At least 13% of Vision Fund employees will likely be affected, primarily in the U.S. Why it matters: Following five consecutive quarters of losses, the Vision Fund's layoffs reflect the challenging environment for technology investments. Global startup valuations have suffered due to concerns about unprofitable companies, rising interest rates, economic difficulties, and more. By the numbers: Vision Fund recorded a loss of ¥4.3 trillion ($30B) for the fiscal year ending March 31, compared to a ¥2.55 trillion ($1.6B) loss in the previous year. Founder Masayoshi Son has said SoftBank is in "defense mode" as it prepares for different scenarios, including the possibility that the market may not recover until early 2024. Vision Fund's fiscal year investments decreased to around $3.2B from $44.3B YoY. It's expected that SoftBank will continue to be more selective with its investments in the future. 
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| 3 | | Elon Musk and Mark Zuckerberg have been engaging in a playful but seemingly serious online exchange about a potential cage fight. Musk expressed his willingness to participate in a fight if Zuckerberg agreed. While the messages appeared to be in jest, a Meta spokesperson told The Verge that Zuckerberg's post was not a joke and "the story speaks for itself." More: - The exchange began on Tuesday, when Musk responded to a thread about Instagram's upcoming standalone app, a Twitter competitor.
- The Tesla CEO then joked that he'd be "up for a cage match" if the Meta CEO was willing.
- Zuckerberg playfully fired back with a screenshot of Musk's tweet and the caption: "Send Me Location."
- Musk responded back, "Vegas Octagon" and then added, "I have this great move that I call 'The Walrus', where I just lie on top of my opponent & do nothing."
- He also said, "I almost never work out, except for picking up my kids & throwing them in the air."
Zoom out: | | | |
| 4 | | Apple has released new software tools for developers to build apps for its upcoming Vision Pro mixed reality headset. Apple aims to generate excitement around the system by relying on developer interest and support. More: - Apple released the visionOS software development kit (SDK) months ahead of the headset's official launch in early 2024.
- The company aims to have a robust App Store by the time the headset becomes available.
- The SDK leverages familiar frameworks like Xcode, SwiftUI, RealityKit, ARKit, and TestFlight.
- Apple is also launching developer labs in several major cities next month to provide hands-on experience and support.
- Developers can apply for Vision Pro hardware kits, and those working on Unity-based 3D apps and games can port their applications to the headset.
Zoom out: - Priced at $3,500, the Vision Pro is described as Apple's "first spatial computer."
- Its operating system, visionOS, will allow users to interact with digital content in their physical space using hand, voice, and eye movements.
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| 5 | | Twitter has resumed paying Google Cloud, helping to mend a strained relationship after Elon Musk acquired the social network, Bloomberg reported. Twitter's new CEO, Linda Yaccarino, reportedly played a key role in restoring the relationship, and the companies are now exploring a potential partnership involving advertising and Twitter's API, according to an uidentified source. More: - Google is one of Twitter's major advertisers, and Twitter relies on Google Cloud for critical infrastructure.
- According to a Platformer report, Twitter had previously refused to pay its bills to Google Cloud as its $1B contract was up for renewal on June 30.
- Twitter had been rushing to migrate its services off of Google's servers but was reportedly behind schedule.
- After discussions, Twitter as resumed paying its Google Cloud bill and the companies are now looking into a deeper partnership that involves Google's ad spending on Twitter and the use of Twitter's API data access tool.
- Both Twitter and Google have declined to comment on the matter.
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| 6 | | Dropbox has introduced two new AI offerings for search and queries. Dropbox Dash and Dropbox AI offer personalized AI assistance, such as summarizing documents and surfacing related information. More: - Dash, now in beta, is a universal search engine for users to search and access files within Dropbox and across the web.
- The feature uses generative AI to answer queries and provide relevant information.
- It includes features like "Stacks" for organizing links and a start page for easier navigation.
- Likewise, Dropbox AI summarizes and extracts information from large documents, contracts, and more stored in Dropbox accounts.
- Powered by an OpenAI model, the feature is in Alpha and can also answer questions like a chatbot.
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| 7 | | Quick Hits: - Combine traditional project management with your docs, knowledge base, and AI.*
- Cloud-based design tool Figma, in partnership with Google for Education, is now available free of charge for all K-12 students in the U.S.
- Sidechain scaling solution Polygon unveiled Polygon Copilot, a GPT-4-powered interface that supports developers building decentralized applications for the network.
- A new VR suit with soft-robotic muscles could enhance VR experiences, assist in motion capture, and aid patients with Parkinson's disease.
- European mobility operator Bolt unveiled its sixth-generation e-scooter with an expected lifespan of eight years.
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 | AI and technology writer | | Beth is a writer and editor at Inside.com covering artificial intelligence and daily technology news. She has written the Inside AI newsletter since 2019. You can reach her at Beth.Duckett@inside.com. | | This newsletter was edited by Eduardo Garcia | |
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