Tuesday, June 4, 2024

Microsoft cuts jobs in cloud, mixed reality units / Databricks to acquire Tabular / NY to restrict social media algorithms for minors

Also: X updates policy to officially allow adult content.

Inside Tech

For June 04, 2024

Here’s a look at today's tech briefing:

Microsoft cuts jobs in Azure cloud, mixed reality.
Databricks to acquire Tabular.
New York to restrict social media algorithms for minors.
X updates policy to officially allow adult content.
Intel unveils new AI chips for data centers.
Max raises prices.

Microsoft is laying off hundreds of employees in its Azure Cloud and mixed-reality businesses. The job cuts will affect roughly 1,000 employees, a source told CNBC.

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Microsoft is cutting hundreds of jobs in Azure Cloud, including Azure for Operators and Mission Engineering.
The company confirmed that it is also restructuring its mixed reality organization, though it will continue to sell the HoloLens 2, its mixed reality goggles.
The Hololens 2 forms the basis for Mucrosoft's Integrated Visual Augmentation System (IVAS) program with the Pentagon, which the company remains "fully committed to."
Microsoft's mixed-reality military devices offer improved battlefield awareness including night vision, health stats, and infantry position tracking.

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In January, Microsoft reduced its workforce by 1,900 positions across its Activision Blizzard, Xbox, and ZeniMax teams.
The gaming layoffs came three months after Microsoft finalized its $69B acquisition of Activision Blizzard.

Data analytics software maker Databricks plans to acquire data-management company Tabular for $1B to $2B. Tabular provides data management tools based on Apache Iceberg, an open-source data storage method developed at Netflix.

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Iceberg competes with Databricks' Delta Lake open format in the data lakehouse architecture space.
While the two have been largely incompatible, Databricks plans to merge Delta Lake and Iceberg into a unified standard.
Merging the two leading open-source Lakehouse standards will provide customers with more options and fewer incompatibilities, Databricks said.
Tabular founders Ryan Blue, Daniel Weeks, and Jason Reid will join Databricks. The three formerly worked at Netflix and co-founded Tabular in 2021.

Zoom out:

Databricks and rival Snowflake aid companies in managing and storing data, which is crucial for AI/ML workloads.
Nearly three-quarters of organizations have a data lakehouse, according to MIT Tech Review.

New York is set to ban social media companies from using algorithms to target children without parental consent. State lawmakers and Gov. Kathy Hochul have tentatively agreed on a bill, which is set to be voted on this week.

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The bill would require platforms like Instagram and TikTok to default to chronological content feeds for young users. Algorithm-driven content feeds would require parental approval.
Supporters argue that removing the algorithmic feeds would cut down on the apps' addictiveness.
The bill would also block minors from viewing in-app notifications overnight without parental consent.
A separate measure would ban platforms from collecting and selling the personal data of people under 18 without consent.

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If passed, New York joins states like Utah, Arkansas, Louisiana, Ohio, and Texas in regulating children's access to social media.
Florida Gov. Ron DeSantis recently signed a law banning social media accounts for children under 14 and requiring parental consent for ages 14 and 15.
Over 80% of U.S. adults support social media companies requiring parental consent for minors to create an account, according to a Pew Research Center survey.

Social media platform X updated its policy to officially allow adult content. While X has never had a blanket ban on NSFW posts, its latest adult content policy now formally allows sexual content, including AI-generated imagery.

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X users are allowed to post and share sexual content and nudity as long as it's "properly labeled and not prominently displayed," the policy states.
Sexually themed material is permitted as long as it is produced and distributed consensually.
The content is still banned from "highly visible places," such as a user's profile photo and banner.

Zoom out:

In 2022, an estimated 13% of X posts contained adult content, a figure that has likely increased due to so-called "porn bots" on the platform.

Intel unveiled new AI chips for data centers shortly after Nvidia and AMD announced similar products. Intel said the Xeon 6 processor promises superior performance and power efficiency in data centers compared to its predecessor.

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Intel debuted the 5th Gen Xeon processors six months ago.
The new Xeon 6 chips are tailored to fulfill the demands of AI and high-performance computing.
Intel also shared more details about its upcoming Lunar Lake processors for AI PCs.
Lunar Lake, launching in Q3, offers a boost in on-device AI capabilities with up to 40% less power consumption.

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The announcement comes just days after Nvidia and AMD revealed new AI processors.
AMD announced new AI chips for data centers and PCs, while Nvidia announced its next-generation AI chip platform, Rubin, due out in 2026.

Streaming service Max, formerly HBO Max, has raised its prices for ad-free plans. For new subscribers, the basic ad-free subscription now costs $16.99 a month, up from $15.99.

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Max's 4K ad-free plan also increased by $1, to $20.99 a month.
The ad-supported plan remains the same at $9.99 a month.
The new rates take effect immediately for new subscribers. Existing customers will see the changes reflected in their bills after July 4.

Zoom out:

Warner Bros. Discovery increased Max's price for the first time last year
The latest increase comes ahead of the return of "House of the Dragon," Max's "Game of Thrones" prequel, for a second season on June 16.
Warner Bros. Discovery and Disney recently announced a bundle of their streaming services, Disney+, Max, and Hulu, with no price disclosed yet.

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TikTok is working to fix an exploit that compromised accounts belonging to Paris Hilton, CNN, and others. The malware spreads through direct messages, though the hacked accounts don't appear to be posting content.
Samsung has proactively sued smart ring maker Oura, seeking to clarify that its upcoming Galaxy Ring does not infringe on Oura's patents.
Netflix is ending support for second- and third-gen Apple TVs on July 31.

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Beth Duckett

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

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Intel launches new AI chips to rival Nvidia, AMD / Deep Dive: Cava raises outlook / Dr Pepper, now second-largest soda, beats Pepsi

Plus, Jeep expects 50% hybrid SUV surge by 2024

Inside Business

For June 04, 2024

Here’s your daily business briefing.

🛠️ Intel launches new AI chips to rival Nvidia, AMD
🍽️ Deep Dive: Cava raises outlook as diners spend more
🥤 Dr Pepper, now the second-largest soda, beats Pepsi

Thanks for reading!

Shriram
p/Shriram

At the Computex Tech Conference, Intel unveiled new Xeon 6 processors that enhanced performance and power efficiency for data center workloads. This announcement coincides with Nvidia and AMD's recent launches in the AI chip market, with Nvidia introducing "Rubin" chips and AMD outlining its Instinct accelerator roadmap until 2026.

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Intel revealed reduced prices for its Gaudi 2 and Gaudi 3 AI accelerators compared to competitors.
The company disclosed architecture specifics for its forthcoming Lunar Lake processors, which are anticipated to compete in the AI PC segment.
Intel seeks to narrow the gap with Nvidia and AMD in the AI market after being relatively inactive during the AI boom.
Intel's foundry business faced a $7B operating loss in 2023, yet assistance from the Biden administration could aid its semiconductor manufacturing and R&D endeavors.

What the numbers say: Cava Group Inc. raised its annual same-store sales growth outlook to 6.5% from 5%, with first-quarter sales growing 2.3% above expectations. Despite a 92% share gain this year, Cava's stock fell 5.4% in extended trading after the announcement, following a 3% price increase in January with no further hikes expected.

Relevance: Cava's strong performance and optimistic outlook mirror trends in fast-casual restaurants like Chipotle and Sweetgreen, which are thriving despite inflation. This success highlights a consumer shift toward fast-casual dining for its perceived value and healthier options, with the narrowing price gap making it more appealing despite tighter budgets.

More data: Cava is launching a new grilled steak option on June 3, expected to boost sales as consumers choose premium proteins. Despite a first-quarter decline in traffic due to the cold January weather, spending on extras like pita chips and beverages increased, with consumer spending remaining resilient across all income brackets.

According to market share data from Beverage Digest, in 2023, Dr Pepper overtook Pepsi to become the second-largest soda brand in the U.S., commanding 8.3% of the market share by volume, while Coca-Cola maintains its lead with a 19.2% share. Dr Pepper's rise is credited to its distinct flavor profile and positioning as a spicy cola alternative, with its origins predating Coca-Cola and Pepsi, dating back to its founding in Waco, Texas, in 1885.

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Dr Pepper gained national popularity in the 1970s by promoting its distinct flavor to a wider audience.
Introducing new flavors like Dr Pepper Strawberries & Cream proved highly successful for the brand.
Dr Pepper has embraced trends such as "Swicy" (sweet and spicy) products, aligning with broader food and beverage industry shifts.
Pepsi's emphasis on its zero-sugar products and extensive food business may have detracted attention from its flagship Pepsi brand.

Jeep aims to boost U.S. sales of plug-in hybrid electric vehicles (PHEVs) by 40% to 50% in 2024, projecting a target range of 160,000 to 170,000 units. This initiative is a strategic move to bridge the divide between conventional gas-powered SUVs and fully electric vehicles, with PHEVs serving as a transitional phase to accelerate consumer acceptance before the transition to all-electric models.

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Jeep's 2024 PHEV sales goal exceeds Stellantis' total PHEV sales in the U.S. for 2023, which amounted to around 143,000 units.
PHEV sales are expected to surpass industry projections, with an estimated segment growth of 27.5% for the current year.
With Wranglers and Grand Cherokees leading the way, Jeep's PHEV sales in 2023 reached 113,113 units.
Stellantis will debut range-extender electric vehicle (REEV) models, starting with the Ram Ramcharger pickup, offering an alternative to traditional hybrids and fully electric vehicles.

Amid low crop prices, U.S. farmers are planting more soybeans over corn to minimize losses due to lower production costs and marginally better profitability. The U.S. Department of Agriculture forecasts that 86.5 million acres of soybeans will be planted nationwide, with expectations for further increases.

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Agricultural economists in Illinois project negative average returns for corn and soybeans, with soybeans incurring smaller losses.
Despite lower fertilizer costs, declining crop prices, and borrowing rates, these factors impact farmer profitability.
Soybean plantings are expected to rise by 3.5% this year, while corn plantings are projected to decrease by 4.9%.
Weather delays and soybeans' relative profitability could increase plantings by up to 1 million acres beyond USDA forecasts.

Americans expect an 8% rise in summer electricity bills to an average of $719 from June to September, driven by higher usage amid rising temperatures. The U.S. Energy Information Administration predicts a 2.9% increase in average summer electric bills to $519, with the mid-Atlantic, Pacific, and Midwest regions seeing the highest spikes.

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Heat-related deaths rose to over 2,300 last year from 1,600 in 2021, with health emergencies hitting record levels last summer.
Federal utility assistance decreased by one-third this fiscal year, with LIHEAP funding falling from $6.1B to $4.1B, potentially affecting about 1 million fewer households.
In December, approximately 21.2 million U.S. households were behind on their utility bills, an increase from 20.1 million the previous year, with arrears totaling $20.3B.
- According to an April Household Pulse Survey, nearly 1 in 5 households reported maintaining unsafe or unhealthy temperatures in their homes at least once within the past year.
Only 17 states and D.C. offer summer power shutoff protections, but regulations are often inadequate, triggered only by extreme temperatures or heat advisories.

Quick Hits:

Join industry's leading AI conference - free passes available! Register Now! passes are selling quickly*
Qantas Airways Ltd. and Perth Airport have reached a $2B deal for a new terminal and runway, paving the way for a long-haul aviation hub in Western Australia after resolving their disputes.
BD has agreed to acquire the critical care unit of Edwards Lifesciences for $4.2B in a deal expected to close by the end of 2024 and immediately boost BD's profitability.
Amazon is introducing an AI-powered search feature on Fire TV that will allow Alexa to answer open-ended queries about TV shows and movies, providing personalized recommendations based on users' preferences.
Moderna and Merck's experimental cancer vaccine combined with Keytruda demonstrated durable efficacy and improved survival in a mid-stage study.

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Shriram Jeevakumar

Freelance Writer

Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School.