| Happy Friday! Here are today's top tech stories: - Microsoft has completed its $69B acquisition of Activision Blizzard.
- Meta outlined how it's combating disinformation during the Israel-Hamas war.
- Caltech agrees to settle Wi-Fi patent case against Apple and Broadcom.
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| 1 | | Microsoft has successfully closed its $69B acquisition of Activision Blizzard, setting a new record as the largest deal in both Microsoft's history and the gaming industry. The companies announced the deal on Friday, shortly after receiving final approval from U.K. regulators. 
Why it matters: The deal, first announced in January 2022, underwent heavy scrutiny from U.K. and U.S. antitrust regulators, who worried the merger would hinder competition in the gaming industry. Now that it's closed, Microsoft's Xbox business merges with the world's largest game publisher, granting Microsoft control over a multitude of game franchises, including Call of Duty, Crash Bandicoot, Diablo, Overwatch, StarCraft, Tony Hawk Pro Skater, and Warcraft. The deal will bolster Microsoft's 23-studio gaming division with Activision Blizzard's major divisions: Activision, Blizzard, and Candy Crush maker, King. Quotable: "Today is a good day to play," Xbox chief Phil Spencer stated. "We officially welcome Activision Blizzard King to Team Xbox. Together, we'll create stories and experiences that bring players together, in a culture empowering everyone to do their best work and celebrate diverse perspectives." Still: In order to secure approval, Microsoft made a number of concessions, including a commitment not to restrict Activision titles on competing consoles like Sony's PlayStation. To address the U.K.'s concerns, Microsoft agreed to transfer cloud gaming rights for all current and future Activision Blizzard games to rival Ubisoft Entertainment. What's next: Microsoft now plans to add a number of Activision Blizzard games to Xbox Game Pass, its video game subscription service for Xbox consoles and PCs. Bobby Kotick, CEO of Activision Blizzard, will stay on board to assist with the transition until the end of 2023. Meanwhile, the FTC said it will still focus on its appeal opposing the acquisition but will "assess" the deal with Ubisoft. |     | |
| 2 | | Since the Hamas terrorist attack on Israel, Meta has removed or labeled more than 795,000 pieces of content in Hebrew or Arabic that violated various policies, including those against violence, hate speech, harassment, and harm coordination. In a blog post Friday, Meta outlined the actions it has taken to combat disinformation on its platforms during the conflict. More: - Within three days of the Oct. 7 attack, Meta said it removed seven times more content daily for violating its "Dangerous Organizations and Individuals" policy in Hebrew and Arabic than in the preceding two months
- The company has temporarily adjusted its content moderation technology to reduce the spread of "potentially violating and borderline content," the blog said.
- In addition, Meta opened an operations center with experts fluent in Hebrew and Arabic to monitor platforms.
- Hamas is banned from Meta's platforms due to its designation by the U.S. government as a foreign terrorist organization, and any "praise and substantive support" for the group is removed.
- Meta noted that "social and political discourse," such as news articles and general discussion, are still allowed.
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| 3 | | The California Institute of Technology has agreed to settle its seven-year legal battle with Apple and Broadcom over alleged Wi-Fi patent violations. Caltech initially accused Apple and Broadcom of infringing on its wireless communication patents with devices like iPhones, iPads, and Apple Watches using Broadcom chips. More: - In 2020, a jury ordered Apple to pay $838M and Broadcom $270M in patent-infringement damages.
- However, a U.S. appeals court overturned the decision last year, calling the amount "legally unsupportable."
- A new trial was ordered but postponed indefinitely after the parties told the court that they had reached a potential settlement.
- Caltech has now agreed to drop its lawsuit against both companies with prejudice, which prevents it from refiling the case.
Zoom out: -
Caltech resolved a similar case against Samsung in August and has pending Wi-Fi patent lawsuits against Microsoft, Dell, and HP. | | | |
| 4 | | Netflix is planning to launch physical retail stores to sell merchandise, food, and experiences tied to its movies and TV shows. The first two locations are set to debut in the U.S. in 2025, with a global expansion to follow. More: - The stores, called Netflix House, will offer immersive experiences, live performances, and rotating art installations based on shows.
- An in-house restaurant will offer dishes and beverages featured on the streamer's unscripted food-based reality shows.
- The first two locations are said to include obstacle courses inspired by the popular "Squid Game" series.
- Netflix has previously ventured into real-world venues and events, with pop-up experiences celebrating shows like "Stranger Things."
Zoom out: - According to Digital Trends, the move by Netflix appears more about content promotion than profit diversification.
- It will still offer an additional revenue stream as the company continues to raise prices to boost its bottom line.
Q: Based on what we know so far, do you think Netflix's new stores will be a success? Share your thoughts here. | | | |
| 5 | | Google's AI-powered search feature can now generate images using text prompts directly in the search bar. The image-generating feature is a part of Google's Search Generative Experience (SGE), which is currently being tested among users who sign up. More: - SGE is Google's vision for the future of web search, where it generates AI content in response to natural language queries.
- To generate images in SGE, users type in a description, and Google provides four image options to select from or edit.
- The image-generating tool is powered by Google's Imagen text-to-image diffusion models.
- To access the feature, users need to be registered for Google Labs, its space for testing out early products, and enrolled in the SGE program.
- The image generator is only in English and is currently limited to the U.S. and users over 18.
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| 6 | | A bipartisan U.S. bill seeks to protect actors and recording artists from any unauthorized use of their AI likeness. Four Senators have released a discussion draft of their Nurture Originals, Foster Art, and Keep Entertainment Safe (NO FAKES) Act, which bans people and companies from copying the "image, voice, and visual likeness of individuals" without the artists' permission. More: - The draft bill bans individuals from creating or distributing unauthorized AI-created replicas of a person for an audiovisual or sound recording without that person's consent.
- The person who creates or shares the unauthorized replica would be held liable for any damages caused by the AI-generated fake.
- Its sponsors are U.S. Sens. Chris Coons (D-Del.), Marsha Blackburn (R-Tenn.), Amy Klobuchar (D-Minn.), and Thom Tillis (R-N.C.).
Zoom out: - The proposal comes as negotiations between Hollywood studios and the striking actors' union, SAG-AFTRA, have come to a standstill.
- SAG-AFTRA President Fran Drescher expressed gratitude that the senators are "working to give performers recourse and providing tools to remove harmful material."
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 | AI and technology writer | | Beth is an editor and writer of Inside's AI and Tech newsletters, with a career spanning journalism since 2007. She has written for publications including The Arizona Republic and USA Today and authored a book on the solar industry in 2016. Reach her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Eduardo Garcia | |
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