| |
| Here’s a look at today's tech briefing: - TikTok vows to fight potential U.S. ban.
- Salesforce-Informatica acquisition falls through.
- Big Tech earnings arrive this week.
- Apple acquired French AI firm Datakalab.
- Meta opens up VR OS to outside hardware makers.
- Embracer will split into three companies.
Beth
p/beth-duckett | |
| 1 | | TikTok vowed to fight U.S. legislation to ban the app unless it's sold by Chinese owner ByteDance. The House passed the TikTok ban bill on Saturday, bundled with aid for Ukraine and Israel. The package now heads to the Senate for approval within days, with President Biden saying he would sign it. More: - The revised bill, part of the broader foreign aid package, would force ByteDance to divest TikTok within up to a year or face a ban.
- U.S. app stores would be barred from offering TikTok for downloads.
- ByteDance will contest the ban in court, according to Michael Beckerman, TikTok's U.S. public policy head.
- He argued the legislation violates the First Amendment rights of TikTok's 170 million American users.
Zoom out: - ByteDance has previously thwarted attempted U.S. bans in court, including a Montana ban and a 2020 order by the Trump administration.
- Both Democrats and Republicans are worried about China's influence on ByteDance, which could be forced to surrender U.S. user data.
- Sen. Mark Warner (D-Va), chair of the Senate Intelligence Committee, called TikTok a national security risk, warning that it could be used as a Chinese propaganda tool.
|     | |
| 2 | | Salesforce's plan to buy Informatica fell through over term disagreements, sources told the WSJ. Informatica, a data-management software company, said it's not in takeover discussions anymore. More: - Salesforce was in advanced talks to acquire Informatica for around $10B, one of the CRM giant's largest deals.
- However, the companies were reportedly unable to agree on a price.
- Salesforce was considering a bid around the mid-$30s per share.
Zoom out: - Salesforce's biggest acquisitions include Slack for $27.7B in 2021 and Tableau Software for $15.7B in 2019.
- After last year's scrutiny from activist investors over its deal-making, Salesforce cut costs, implemented layoffs, and disbanded its M&A committee.
| | | |
| A message from our sponsor, Hims and Hers. |  | | Visit Hims for more ways to treat ED. Have great sex for less than $2/day. Hims provides access to doctor-trusted ED treatment options such as chewable Hard Mints and Sex Chews, proven treatments like Viagra and Cialis, or generic alternatives for up to 95% cheaper. The process is simple, 100% online and discreet; No doctor office or pharmacy visit required. Just fill out an online intake form and a licensed medical provider will determine if a prescription is right for you. You’ve got options. Hims is: - Prescribed by licensed providers
- 100% online with discreet shipping
- Your personalized treatment recommendation
Find my treatment | |
|
| 3 | | Tesla, Meta, Microsoft, and Alphabet will report quarterly earnings this week, with AI expected to be a major theme. The earnings from four of the "Magnificent Seven" tech giants could potentially boost the S&P 500 Index, which is down 5.5% this month. 
More: Nearly 180 S&P 500 companies, accounting for over 40% of the index's market cap, will report earnings this week, with the focus on Big Tech companies. Tesla will report earnings on Tuesday, followed by Meta on Wednesday, and Microsoft and Alphabet on Thursday. Apple and Amazon are set to report earnings next week, with Nvidia following on May 22. What the numbers show: The "Magnificent Seven" tech firms' stocks more than doubled on average last year. By the end of March, the Mag Seven made up 29% of the S&P 500's market value, the greatest share in years. However, their stocks lost a record $950B in market value last week, with Nvidia experiencing the second-largest daily market cap loss in U.S. history, falling $212B in a day. What's next: Investors still hope for an AI-driven recovery in the S&P 500. Mag Seven profits are expected to rise by 38% in Q1 from a year ago, outpacing the S&P 500's projected YoY earnings growth of 2.4%, according to Bloomberg Intelligence. | | | |
| 4 | | Apple acquired Paris-based AI startup Datakalab in December, with the deal unreported until now. Datakalab specializes in AI compression and computer vision. More: - Apple's takeover, finalized on Dec. 17, was noted in a recent European Commission filing.
- Datakalab specializes in low-power and deep-learning algorithms that run directly on devices.
- Its AI tech can analyze human faces and emotions through facial recognition and visual data.
- During the pandemic, Datakalab worked with the French government to visually monitor mask compliance at a Paris rail station.
- The tech was also used to gauge real-time audience reactions during theater screenings.
Zoom out: - The deal comes after Apple acquired Canadian AI startup DarwinAI earlier this year.
- The moves are part of Apple's strategy to bring more advanced AI to its products.
- Its first major AI push is expected this summer, with previews of iOS 18 and macOS 15. Both could incorporate AI features, such as an improved Siri, directly on devices.
| | | |
| 5 | | Meta will open up its operating system for Quest headsets to outside hardware makers. Microsoft's Xbox, Asus, and Lenovo will be the first to build virtual-reality headsets running the OS. More: - Third-party companies can now build their own XR headsets using "Meta Horizon OS," which is based on a version of Android.
- The devices will be able to connect to the Meta Quest app, soon to be renamed Meta Horizon.
- In a video announcement, Mark Zuckerberg compared the move to Android vs. iOS.
- "In every era of computing, there are always open and closed models," Zuckerberg said, adding that phones are dominated by Apple's closed system.
- "Our goal is to make it said the open model defines the next generation of computing again with the metaverse, glasses, and headsets," Zuckerberg said.
Early partners: - Microsoft and Meta will create a "limited-edition Meta Quest, inspired by Xbox."
- Asus will focus on a VR gaming headset, while Lenovo targets a device for "productivity, learning, and entertainment."
| | | |
| 6 | | Swedish gaming conglomerate Embracer Group will split into three independent, publicly listed companies. The European video game giant, known for Tomb Raider and Lord of the Rings, has been restructuring after a $2B investment failed last summer. Companies: - Embracer's Middle-earth Enterprises & Friends will oversee its major gaming studios and franchises.
- These include Dead Island, Killing Floor, Kingdom Come Deliverance, Tomb Raider, and The Lord of the Rings.
- The group will take over on the Stockholm stock exchange.
- Asmodee, the second company, will manage Embracer's tabletop gaming business, including Ticket to Ride and CATAN.
- Coffee Stain & Friends, the last split, will focus on free-to-play games and indie ones like Deep Rock Galactic and Goat Simulator.
Zoom out: - In the last year, Embracer has laid off thousands of employees, canceled games, and closed studios.
- It recently sold Gearbox, the Borderlands developer, to Take-Two for $460M, a fraction of the $1.3B it paid in 2021.
| | | |
| 7 | | QUICK HITS: - The EU has launched a second probe into TikTok for potentially violating the Digital Services Act, focusing on the addictive qualities of its TikTok Lite app.
- Microsoft Research Asia's new AI model can generate highly realistic deepfake videos from audio and a single photo.
- The upcoming macOS 15 update will revamp Apple's Mac calculator app with round buttons, a history tape of prior calculations, and Notes integration.
- A federal jury ruled that Take-Two Interactive did not infringe on the copyright of LeBron James' tattoo artist. The court found the developer had an implied license to use the basketball star's tattoos in its NBA 2K games.
*This is a sponsored post. | | | |
 | AI and technology writer | | Beth is a contributing editor and writer of Inside's AI and Tech newsletters. She has written for publications including USA Today, the Arizona Business Gazette, and The Arizona Republic, where she received recognition with a Pulitzer Prize nomination and a First Amendment Award for collaborative reporting on state pension cost increases. You can reach her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Beth Duckett | |
| |
 | Hims is on a mission to help the world feel great through the power of better health. | |
|
| |
