| Here are today's top tech stories: - Mircrochip Technology to receive $162M in CHIPS funding.
- Google disables third-party cookies for 30 million Chrome users as part of a test.
- NLRB accuses SpaceX of illegally firing employees who criticized Elon Musk.
Beth
p/beth-duckett | |
| 1 | | The Biden administration announced plans to award Microchip Technology with $162M in grants to boost domestic production of semiconductor chips and microcontroller units. The move is part of a larger bipartisan effort to shift more chip manufacturing back to the U.S., where production had fallen to less than 10% of the global supply. 
What happened: The fresh funding, drawn from the $52.7B U.S. CHIPS and Science Act, will allow Microchip to boost production at two of its U.S. facilities, creating 700 new jobs over the next decade. Specifically, $90M is earmarked for improvements to a Colorado plant and $72M to expand an Oregon plant, effectively tripling Microchip's semiconductor output. The chips are vital for the U.S. automotive, commercial, defense, and aerospace industries, according to Lael Brainard, director of the White House National Economic Council. Why it matters: The move can help reduce U.S. reliance on foreign chip production, particularly from China, and address issues like price surges and supply delays experienced during the pandemic, according to Brainard. Commerce Secretary Gina Raimondo sees it as vital for reinforcing the semiconductor supply chain in many sectors, a key part of a larger strategy to protect U.S. industries from global supply chain challenges and security risks. |     | |
| 2 | | Google is now publicly testing a version of its Chrome browser that automatically disables third-party cookies by default. About 30 million Chrome users, or 1% of its global user base, will be randomly chosen for the test, part of Google's larger plan to phase out third-party cookies later in the year. More: - As of today, 1% of Chrome users on desktop or Android will receive a notification if they are chosen to test Google's new Tracking Protection feature, which disables third-party cookies.
- The cookies, which gather data for analytics, personalize ads, and track browsing, are already blockable in other browsers like Safari and Firefox.
- While Google now allows users to turn on third-party cookie deprecation, the new test will roll a version of Chrome that cuts out the cookies as a default.
- Google is replacing third-party cookies, small files stored on devices that gather data, with its Privacy Sandbox, a set of APIs designed to support online advertising and analytics without compromising user privacy.
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| 3 | | The U.S. National Labor Relations Board has accused SpaceX of unlawfully firing eight workers in 2022 after they distributed a letter criticizing the company's CEO, Elon Musk. The labor board alleges that SpaceX's president, Gwynne Shotwell, and other executives improperly prevented the letter's circulation. More: - SpaceX infringed on employees' federal rights to collectively advocate for improved working conditions, an NLRB spokesperson said.
- The NLRB's complaint, filed Wednesday, alleges that SpaceX questioned employees about their connection to the letter and instructed them not to talk about the interviews.
- The eight former employees claim they were illegally fired after they circulated the letter on SpaceX's computer system.
- The letter urged SpaceX to distance itself from Musk's social media actions. "Elon's behavior in the public sphere is a frequent source of distraction and embarrassment for us," it said.
- SpaceX has yet to comment on the matter.
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| 4 | | Qualcomm has unveiled a new chip designed to power virtual and mixed reality devices. The Snapdragon XR2+ Gen 2 will support better graphics and sharper screens on future VR/AR headsets. More: - The new chip represents an upgrade from the standard XR2 Gen 2, which powers the Meta Quest 3 virtual reality headset.
- Qualcomm is collaborating with Samsung and Google on an unnamed device that will incorporate the improved XR2+ Gen 2 chip.
- The XR2+ Gen 2 supports 4.3K resolution per eye, up from 3K, and up to 12 cameras, an increase from 10, which should improve VR passthrough and body tracking features.
- The new chip can also handle content up to 90 frames per second. It boasts a roughly 20% increase in CPU speed and a 15% improvement in GPU power compared to the prior version.
Zoom out: - While Apple's upcoming XR headset, priced at $3,499 and powered by its M2 processor, is set to launch early this year, the partnership between Qualcomm, Samsung, and Google suggests the possibility of a cheaper alternative in the near future.
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| 5 | | Peloton announced plans to launch short-form fitness videos and other content on TikTok. The collaboration is part of Peloton's strategy to appeal to a broader customer base and increase its subscriber numbers in the face of declining sales and earnings. More: - Under the plan, Peloton will launch a new fitness center hub on TikTok, called "#TikTokFitness Powered by Peloton."
- The hub will offer offer short fitness videos, live classes, instructor content, and collaborations with TikTok creators.
- It's the first time Peloton has created custom social content for a partner outside of its owned channels.
Zoom out: - Demand for Peloton's home fitness equipment fell sharply after the pandemic. Costly bike recalls this year further delayed its return to positive cash flow.
- In the quarter ending September 30, Peloton's membership dropped by 30,000, with revenue falling to $595.5M from $757.9M three years prior.
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| 6 | | Intel has partnered with DigitalBridge, an investment firm, to form a spinoff focused on generative AI software solutions for enterprises. The independent company, called Articul8 AI, will promote Intel's AI hardware suite and allow businesses to train and deploy AI models based on their own data. More: - Articul8 AI is a full-stack generative AI platform designed to function in the cloud, on-premise, or in hybrid cloud environments.
- A major feature is its capability to keep customer data, training, and inference within the enterprise's security framework.
- The platform uses Intel Xeon processors and Gaudi accelerators along with other infrastructure.
- Arun Subramaniyan, formerly general manager of Intel's Data Center and AI Group, was named as CEO of Articul8.
Zoom out: - DigitalBridge Ventures led the investment for Articul8, with Intel and a group of venture investors also acquiring equity stakes.
- The new company evolved from Intel's AI collab with Boston Consulting Group (BCG). Intel leveraged its supercomputer hardware to create a generative AI model for text and images trained on BCG's proprietary data.
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- Apple's stock hit an eight-week low after Piper Sandler downgraded the company due to concerns over iPhone demand. While it's the second analyst downgrade for Apple stock in a week, at least 27 analysts still rate the company's stock as a "buy" or higher.
- Mobileye, an autonomous driving company majorly owned by Intel, has forecasted a major decline in customer orders in early 2024.
- OpenVoice, a collaborative project by MIT, Tsinghua University, and MyShell, has launched an open-source AI voice cloning platform.
- The mobile game "Kim Kardashian: Hollywood" is shutting down after a decade. The game was a major hit for its developer, Glu Mobile, with over 145 million downloads and $160M in revenue in its first two years.
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 | AI and technology writer | | Beth is a contributing editor and writer of Inside's AI and Tech newsletters. She has written for notable publications like USA Today and the Arizona Business Gazette. During her time as a public policy reporter at The Arizona Republic, she received recognition with a Pulitzer Prize nomination and a First Amendment Award for her collaborative reporting on pension cost increases. Beth also authored a book on the solar photovoltaic industry in 2016. You can reach her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Eduardo Garcia | |
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