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Leaked Documents Reveal Mismatch Between Google's Internal Practices and Public Statements
Only a 5 minute read away from staying ahead of the tech market.
Kristoffer Lindström
May 28, 2024
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Q1 earnings saw software development stocks, including Twilio, reporting slower growth than expected. Despite beating revenues by 1.5% on average, they experienced a 7% average decrease in share prices since the last earnings results due to market volatility. Among these, Twilio exceeded revenue expectations by 1.4%, while Datadog outdid analysts by 3.3%. Conversely, F5 and Akamai fell short by 0.4% and 0.2% respectively. Recent market developments suggest trends may continue to fluctuate.
Insight: Key takeaways from Q1 earnings for software development stocks reflect a cautious yet evolving landscape. Despite mixed signals and market volatility, companies like Datadog showed robust growth in large customer acquisition. However, slowed revenue projections and missed billing targets, as seen with Twilio and JFrog, highlight the need for increased operational discipline and innovation. Cooling inflation and optimistic market sentiments offer potential upsides, yet strategic risks remain due to unpredictable market conditions.
Newly leaked Google Search engineering documents challenge public assertions made by Google spokespeople, showing clear discrepancies especially regarding use of domain authority and click metrics in their ranking systems. The leaks reveal the existence of a 'siteAuthority' feature and evidence of click-intensive measures with ranking systems 'Glue' and 'NavBoost'. The assertion that Google doesn't use Chrome data for search ranking was also countered, with modules related to page quality showing a site-level measure of views from Chrome.
Insight: The leak of Google Search’s internal engineering documentation offers a rare…
OpenAI has secured fresh deals with News Corp and Reddit for its AI training data. The agreement brings reputable publications to ChatGPT's database including The Wall Street Journal, New York Post, and Barron's. This extends its series of significant data sharing contracts following a similar deal with Reddit, in spite of ongoing lawsuits from The New York Times Company and a cohort of famous authors accusing the company of systematic copyright theft.
Insight: The strategic partnerships OpenAI is forming with leading media outlets signal a…
Streaming giants including Netflix, Amazon Prime Video, Disney+, and HBO Max have integrated 30- and 60-second ads into their platforms. Introduced as a move for reduced subscription rates, the ad inclusion also augments the companies' revenue. Despite a rise in ad-supported subscriptions, industry leaders predict a continued decline in overall ad revenues. Executives maintain that the ad experience in streaming services will not be as intrusive as traditional TV. However, even higher-priced subscriptions will not shield viewers from ads during live sports broadcasts.
Insight: Streaming platforms are increasingly blending…
Private equity firms are retaining a record $3 trillion across 28,000 companies as returns wane, impacting hedge funds' fundraising ability, a Financial Times report states. The slow pace of buyout-backed exits, a decline in private equity distributions, and a sluggish IPO market have limited cash available to investors. Meanwhile, Nuvei announced a $6.3 billion deal with a private equity firm, highlighting equity's ongoing expansion into fintech.
Insight: Private equity's struggle to provide returns is stalling hedge fund inflows and…
Facebook ranks as the most deleted social media app in North Carolina, closely followed by Instagram and Snapchat, according to a study by Viralyft. The study, drawn from Google Trends data over the past year, also found the most downloaded app in the state to be YouTube, then Facebook and X (formerly Twitter). Privacy concerns, data security, and new AI mishaps were cited as reasons for the delete-download cycle.
Insight: The frequent deletion of Facebook and Instagram highlights…
BRIEF
Y Combinator CEO, Garry Tan, asserts that AI regulation is necessary, expressing concern about AI bills in San Francisco and California. He supports the National Institute of Standards and Technology's (NIST) efforts to mitigate GenAI risk and approves much of the Biden administration's executive order. However, he remains wary about other regulatory efforts with attention to maintaining balance between managing potential harms and promoting innovation.
An Indiana University study reveals a tiny number of 'superspreader' profiles generate the majority of fake news on social platform X, formerly Twitter. Analysing over 2.3 million tweets by 448,103 users, they discovered one-third of all low-credibility posts came from merely 10 accounts. More than 50% of the top superspreaders were politically-oriented accounts, including influencers and media outlets, often using more toxic language than other wrongful-information sharers.
India's deep-tech startups, focusing on AI, Blockchain, and IoT, have seen investment grow to $1.8 billion in 2022, a 60% increase year-on-year. AI ventures could add $957 billion to India's economy by 2035, while blockchain tech spending expects over 47% annual growth, reaching $4,348.3 million by 2025. Despite challenges regarding long-term capital access and regulatory ambiguity, the Indian deep-tech scene's future is promising.
Venture capital investments in Latin America are booming, outpacing several established U.S. tech hubs. The surge is driven by a growing talent pool and demand for services catered to the rising middle class. Brazil contributes significantly to this growth, but other countries are also advancing economically. The trend towards lower interest rates also enhances the investment landscape. In 2023, about 42% of venture capital deals were for early-stage ventures, and fintech companies accounted for 19% of total investments.
Several AI Chatbot models, including ChatGPT, Gemini, Copilot and Perplexity, have been tested against each other for tasks such as health advice and writing prompts. In most categories, Perplexity, a research-focused AI chatbot, emerged victorious. Despite a big update, OpenAI's ChatGPT didn’t top the tests. Gemini, a Google product, excelled in some areas, and Microsoft’s Copilot showed strong capabilities in creative writing.
Data analytics stocks reported a weaker Q1 with revenues beating analyst consensus estimates by 1% and next quarter's guidance 0.7% below consensus. Share prices dipped by 3.7% on average. Among these stocks, Palantir recorded the fastest revenue growth, while Amplitude reported the highest full-year guidance raise. Health Catalyst suffered weakest performance against analyst estimates and Domo saw slowest revenue growth.
The Sam Altman-backed nuclear startup, Oklo, announced last week that it has struck a deal to supply 100MW of nuclear power to the data center firm Wyoming Hyperscale. This news sent Oklo's shares soaring by over 30%. This ten-year agreement follows a previous deal last month where Oklo committed to provide up to 500MW of power to another data center, Equinix.
QUICK
AI Firm Anthropic Appoints Airbnb Veteran as First CFO in Expansion Move - Anthropic has hired Airbnb veteran, Krishna Rao, as its first CFO to enhance its financial strategy and AI development. The AI startup, backed by Google and Amazon, competes with Microsoft-supported OpenAI, expecting to surpass $850 million in annual revenue by 2024.
EU Users May Opt-Out of Meta's AI Data Use with Justification - Meta's updated privacy policy will use user data from EU Facebook and Instagram accounts for AI training from June 26. Users can opt out, but must express how this impacts them. The EU may scrutinize Meta's data use and opt-out process for compliance with data protection standards.
Orca AI Raises $23M For Autonomous Shipping Expansion, Targets Sustainability - Orca AI, a pioneer in autonomous shipping, has secured $23 million in funding for scaling and product development. This move signals a significant shift towards autonomous navigation in the maritime industry, with a focus on safety, efficiency, and sustainability.
Character.ai in Partnership Talks With Meta, xAI for AI Model Development - Chatbot creator Character.ai is in exploratory talks with Meta and Elon Musk's xAI for potential partnerships focused on AI research and development, despite no deal confirmed yet.
Cloover Secures €104.8M Seed Round Led by Lowercarbon Capital to Accelerate Renewable Energy Adoption - Berlin-based fintech Cloover secured €104.8M in Seed funding to enhance its renewable energy subscription platform. Using the finances, it aims to improve services and accelerate Europe's sustainable energy transition.
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