📰 Industry News

• Sony has announced significant PlayStation layoffs affecting around 900 staff, or about 8% of its global workforce. The layoffs most significantly affect PlayStation’s London studio, which will close entirely. (IGN)

• Bitcoin reached a two-year high, signalling significant market activity as large investors buy into the cryptocurrency, with Ether also seeing notable gains (Reuters)

• A Chinese e-commerce company has said it is considering making an offer for Currys Plc, sending the electronics retailer’s shares soaring amid hopes of a bidding war with private equity investor Elliott. (The Guardian)

• Gymshark’s sales grew +15% YoY in 2023 to a record £556m, which the retailer said was ‘underpinned by the relevance and quality of our product’ and ‘the resonance of our brand’. (Retail Gazette)

• A new foldable concept device from Lenovo/Motorola was showcased at MWC 2024, challenging traditional foldable designs. It’s so bendy, you can wrap it around your wrist and wear it as a watch. (Tech Crunch)

• SHEIN is reportedly considering a stock market flotation in London rather than New York because of potential problems with a listing in the US. (The Guardian)

🖼️ Google’s Gemini Faces AI Backlash - Stock Falls 3.58%

Google's AI tool, Gemini, has faced huge backlash in the last week for its biased representation of historical figures, such as black Vikings, female popes and racially diverse Nazis, highlighting the persistent challenges of AI biases and the importance of responsible programming.

As a result of the controversy, Google’s stock has fallen 3.58% since the end of last week.

Key Points:

1. Inherent AI Biases: Gemini's biases in its outputs result from bigger problems in AI development. These problems stem from the lack of diversity among programmers and the data sets used to train AI. This leads to distorted perceptions and representations.

2. Over-Compensation in Programming: Google tried to make Gemini more aware of race, but has apologised for taking things too far and getting things wrong. They made historical figures look different and ignored the facts of their time. This shows how hard it is to be inclusive while still being accurate about history.

3. Public Backlash and Learning Curve: Gemini received a lot of criticism, including from high-profile figures, which has resulted in Google pausing the AI tool’s image-generating capacity while it reviews its biases, which will be resolved in a ‘matter of weeks‘.

The Google CEO, Sundar Pichai, yesterday addressed the issues saying responses were unacceptable, offended users and showed bias.

The Bottomline: Google rolled out Gemini to replace Bard, its previous AI model, but this already has many questioning its credibility. The Gemini bias fiasco is a critical learning moment for AI development, reminding us that AI is a reflection of our collective knowledge, biases, and the diversity of those who program it.

💸 Nvidia Hits Staggering $2 Trillion Valuation

The latest chapter in Nvidia's financial tale takes a historic leap, touching a colossal $2 trillion (£1.58tn) market cap, overtaking Tesla as Wall Street’s most traded stock.

Holding a commanding 80%-95% market share, Nvidia's strategic positioning as a differentiator rather than a low-cost producer has paid dividends.

Highlights of Nvidia's Stellar Performance

• Revenue Increase: Q4 2023 saw a jaw-dropping 265% jump in revenue to $22.1 billion, smashing expectations and showcasing the voracious demand for Nvidia's tech.

• Earnings Surge: The company's adjusted earnings per share saw an 804% increase, reaching $5.15, which is significantly above the expected consensus.

• Future Growth: With Q1 2024 revenue guidance set for a 300% growth to $24 billion, Nvidia sets a bullish outlook for its continued dominance in AI technologies.

How The AI Chip Market Is Playing Out

Nvidia's not just winning; it's redefining the game. Its strategic genius lies in prioritising innovation over competing on costs. This has not only positioned Nvidia as the go-to for cutting-edge AI chips but also as a visionary leader steering the future of tech.

Its unrivalled growth is a beacon of the AI adoption wave sweeping across industries, from gaming to automotive and beyond.

🌐 Microsoft Tried To Sell Bing To Apple

One surprising story to come out in the last few days from a Google court case, is that Apple has rejected multiple approaches from Microsoft to sell Bing, citing concerns about its search quality and advertising capabilities.

Here's a brief overview of the situation:

• The US Justice Department brought a case against Google, claiming it uses unfair tactics to maintain its significant market share as a search engine.

• The discussions between Apple and Microsoft were highlighted in Google’s court filings as evidence of competition in the search industry.

• Microsoft's effort to sell Bing to Apple was unsuccessful due to Apple's worries about Bing's search quality and its advertising and monetisation strategies.

The Bottomline: ​It’s well known that Google and Apple have a profitable partnership. Google pays a lot of money to be the default search engine on Apple's devices. This deal with Google brought in a lot of money for Apple. Because of this, it is believed, that Apple did not continue discussions to buy Bing.

Google currently has 91.47% of the worldwide market share for search engines. Despite Microsoft investing over $100 billion in Bing over the last 2 decades, it only secures a 3.42% global market share.