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| Here's a look at today's Tech briefing: - X could lose up to $75M in revenue as advertisers withdraw.
- Adobe's Figma purchase and Amazon's iRobot acquisition face antitrust scrutiny.
- Cyber Monday online spending reaches a new record.
Beth
p/beth-duckett | |
| 1 | | X, formerly Twitter, stands to lose up to $75M in ad revenue by the end of 2023 as advertisers withdraw over concerns about antisemitic content, according to internal documents viewed by The New York Times. However, X told The Times that the documents "were either outdated or represented an internal exercise to evaluate total risk." More: - Over 100 major brands, including Airbnb, Apple, and IBM, have now paused advertising on X, according to the documents.
- Some of them did so after Nov. 15, when X owner Elon Musk endorsed an antisemitic conspiracy theory on the platform.
- The biggest drops in ad revenue included some Microsoft subsidiaries, with potential losses of over $4M, as well as Netflix ads worth nearly $3M.
- Dozens of additional advertisers could pause their spending, the Times noted.
Zoom out: - In its response, X said only $11M in revenue was at risk, and the figure could fluctuate as advertisers come back to the platform.
- U.S. advertising on the platform is down by almost 60% this year, prompting CEO Linda Yaccarino to lead efforts to draw advertisers back.
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| 2 | | Amazon's $1.7B acquisition of iRobot could restrict competition in robotic vacuum cleaners, EU antitrust regulators have preliminarily found. On Monday, the European Commission sent a statement of objections to Amazon, saying the company could harm iRobot's competitors by removing rival robot vacuum cleaners from its platform or reducing their visibility. More: - An Amazon spokesperson said iRobot, the maker of Roomba vacuum cleaner, faces "intense" market competition and Amazon could invest in the company to cut prices.
- Amazon said it continues to work with the commission and is focused on addressing its concerns and questions.
- The European Commission, the EU's executive branch, is expected to reach a final decision by Feb. 14.
Zoom out: - The objections were unexpected after Reuters reported last week that the deal was likely to receive approval.
- U.K. authorities approved the deal earlier this year, while the U.S. Federal Trade Commission is still investigating.
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| 3 | | The U.K.'s antitrust watchdog could potentially block Adobe's $20B acquisition of firm Figma unless Adobe addresses its competition concerns. Britain's Competition and Markets Authority (CMA) has preliminarily found that the deal could harm innovation in software for U.K. digital designers. More: - The CMA's in-depth probe, launched in July, has concluded that the deal would likely eliminate competition in product-design software and remove Figma as a rival to Adobe's Photoshop and Illustrator.
- Both Adobe and Figma provide software for designing digital apps and websites, with Figma challenging Adobe's broader suite of creative tools.
- Adobe stated that it disagrees with the U.K. agency's perspective and "will reengage with the CMA on the facts and merits of the case."
- Adone and Figma have until Dec. 19 to respond to the CMA's findings and offer remedies. The agency is expected to issue its final decision by Feb. 25.
Zoom out: - The U.K.'s digital design sector, worth nearly $75.8B or 2.7% of its economy, heavily relies on Adobe and Figma software, the CMA noted.
- The deal is also facing regulatory scrutiny in the U.S. and EU.
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| 4 | | U.S. online shoppers spent a record $12.4B on Cyber Monday, up 9.6% from the previous year, according to Adobe Analytics. In the five days from Thanksgiving to Cyber Monday, online spending rose 7.8% YoY, reaching $38B. According to Adobe, top sellers included Hot Wheels products, Xbox Series X, TVs, and small kitchen appliances. 
What the numbers show: Adobe noted a record-high usage of buy-now-pay-later (BNPL) on Cyber Monday, adding $940M to online spending, up 42.5% from 2022. It comes after Adobe reported a 7.5% YoY rise in this year's Black Friday online sales in the U.S., which reached a record $9.8B. Thanksgiving saw consumers spending $5.6B online last Thursday, a 5.5% increase YoY. What it means: Last month, government data showed a slight retail slowdown, suggesting consumers were waiting for Black Friday deals. Vivek Pandya, a lead analyst at Adobe Digital Insights, said the holiday shopping season started out with uncertainty "as consumers shifted their spending to services while dealing with rising costs across different facets of their lives." However, record online spending during Cyber Week "shows the impact that discounts can have on consumer demand," he noted. Still: Axios notes that e-commerce sales, while impressive, represent less than 16% of total U.S. retail sales. | | | |
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| 5 | | Google's first geothermal energy project is now operational in Nevada. The enhanced geothermal system (EGS), developed in partnership with startup Fervo, is supplying clean energy to the grid to help power two Google data centers near Las Vegas and Reno. More: - In 2021, Google and Fervo Energy announced their collaboration to advance next-gen geothermal power.
- Their small Nevada project, with a 3.5 MW capacity, can generate enough electricity to power the equivalent of about 2,625 homes.
- Google is aiming for complete reliance on carbon-free energy for its data centers and offices by 2030.
Zoom out: - Meanwhile, Fervo is constructing an EGS project in southwest Utah to provide up to 400 MW of carbon-free electricity, enough to power 300,000 homes, starting in 2026.
- In a 2019 DOE report, it was projected that EGS could produce up to 120 GW of clean energy by 2050, covering over 16% of the U.S.' electricity needs.
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| 6 | | The U.S., U.K., and other global powers released non-binding guidelines for how companies should develop and deploy AI models. The international agreement, issued on Sunday, urges companies to make their AI systems "secure by design." More: - 18 countries, including the U.S., U.K., Australia, Canada, France, Germany, and Japan, approved the agreement, while China did not sign.
- The 20-page document stresses the importance of designing and using AI systems with security as a top priority.
- While not legally binding, the agreement offers general recommendations, including monitoring AI model infrastructure, vetting software suppliers, detecting tampering pre and post-release, and training staff on cybersecurity.
- The document doesn't address more controversial AI topics, like image-generating models, deepfakes, or copyright issues.
- The guidelines were spearheaded by the U.K. National Cyber Security Center and jointly developed with the U.S. Cybersecurity and Infrastructure Security Agency.
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| 7 | | Quick Hits: - Competitors are killing your efficiency. Read how Greenhouse gained $85mil in revenue from reps who used Klue over non-Klue users.*
- Amazon unveiled a work chatbot called Q to compete with Microsoft and Google in the productivity software space.
- Dataminr, an AI startup offering predictive insights about global events, is laying off around 150 employees, or about 20% of its staff.
- Popular Science, in publication since 1872, is discontinuing its all-digital magazine format but will continue to offer stories on its website.
- Some police departments and news organizations have issued safety concerns about the new NameDrop feature in the latest iOS17 update. The feature, which lets iPhone users easily share contact info, is actually quite safe, and the warnings are exaggerated, according to digital security specialist Chester Wisniewski.
*This is sponsored content. | | | |
 | AI and technology writer | | Beth is a contributing editor and writer of Inside's AI and Tech newsletters. With a career in journalism since 2007, she has written for publications including USA Today and the Arizona Business Gazette. As a public policy and investigative reporter at The Arizona Republic, she earned a Pulitzer Prize nomination and a First Amendment Award for co-reporting on pension cost increases. She authored a book on the solar photovoltaic industry in 2016. Reach her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Eduardo Garcia | |
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