The French MistralAI has released a beta version of its chatbot, Elon Musk sued OpenAI, and Google has more troubles. What else did we live through last week?
Elon Musk in a lawsuit against OpenAI and Sam Altman argues that the merger with Microsoft was a betrayal of the company's mission in pursuit of profit.
According to the latest forecasts from ABI Research, the augmented and virtual reality (AR/VR) technology sector is on the verge of a revolution - by 2028, the number of AR/VR sets delivered is expected to increase more than fivefold, reaching 69 million units.
Week in review 7.11: WeWork declared bankruptcy; Sam Bankman-Fried guilty of fraud
The fall of WeWork and the verdict of Sam Bankman-Fried. Additionally, AI Safety Summit, Elon Musk's new chatbot and the proceedings of the Polish UODO against OpenAI. This is what we lived through in the first week of November 2023.
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Summary
Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, has been found guilty of fraud and financial malfeasance amounting to $10 billion.
WeWork has filed for bankruptcy but will continue operations under Chapter 11 of the US Bankruptcy Code.
A KPMG report reveals that only 25% of companies are ready for independent verification of ESG information, despite new regulatory requirements.
An agreement on testing artificial intelligence models was reached at the AI Safety Summit, with governments from several countries now able to test AI models of eight leading companies.
Elon Musk's startup, xAI, has developed an AI chatbot called Grok-1, which surpasses the capabilities of GPT-3.5.
LinkedIn has introduced a new AI-based job search assistant, and YouTube is testing new AI-based text solutions.
Chinese companies are increasingly dominating the cybersecurity industry, with six of the top ten patent-filing companies in the sector being from China.
The European Data Protection Board has extended a ban on behavioral advertising on Facebook and Instagram to all EU and EEA countries.
The President of the Personal Data Protection Office has initiated proceedings against OpenAI due to concerns about how the AI processes personal data.
Phishing emails have increased by 1265% since the launch of ChatGPT, according to a report by the cybersecurity company SlashNext.
A study reveals that 8 out of 10 Poles are comfortable working with people of different nationalities, but employers' efforts in promoting diversity are rated poorly.
The Labor Market Indicator for October showed no significant change from the previous month, with a decrease in new job creation and a small influx of new unemployed individuals.
Google's CEO, Sundar Pichai, defended the company's decision to pay billions to remain the world's leading search engine.
NASA is launching a free streaming service in November, featuring live mission events and original content.
WeWork's market valuation has fallen by over 99% after the publication of financial results, with a net loss of $700 million in the first half of 2023.
During the AI Safety Summit, government representatives signed the Bletchley Declaration, acknowledging the need for the safe development of AI.
A study by HubSpot reveals that video content has fifty times greater chances of achieving organic search results than text messages, with 91% of brands planning to use video content in 2023.
From the editorial team
The myth of American technological geniuses revolutionizing the world is increasingly fading into oblivion. Instead, an uncomfortable truth is emerging - these geniuses are in many cases ordinary fraudsters who have mastered the art of manipulation. You don't have to look far for evidence.
In early November, Sam Bankman-Fried, the founder of the third largest cryptocurrency exchange FTX, was found guilty of fraud and financial malfeasance amounting to as much as 10 billion dollars. He now faces up to 115 years in prison. At the same time, WeWork founded by Adam Neumann filed for bankruptcy. You can find more about the downfall of this company in the "Digitized Editorial recommends" section.
This week we especially recommend the trivia section, where you will find information about a new streaming service - but completely different than you expect.
Welcome!
Weekly news review
Organization management
WeWork officially filed for bankruptcy
As expected, WeWork filed for bankruptcy. However, this does not mean the definitive end of the company. The application was filed in accordance with Chapter 11 of the US Bankruptcy Code, which allows to continue operations during reorganization. Some WeWork offices will therefore remain open, although as part of its application the company is seeking the ability to leave some locations, which it describes as "largely non-operational". The company also announced that investors holding 92% of its secured debt have agreed to adjust the terms of their loans to help it continue operations.
ESG reporting. Most companies are not ready for non-financial information audit
With new regulatory requirements, not only disclosure but also independent verification of Environmental, Social, Corporate Governance (ESG) information becomes mandatory. According to a KPMG report, however, only 25% of surveyed companies are ready for this. Meanwhile, 78% of listed organizations are currently or will soon be subject to the obligation to publish ESG non-financial data certified by an independent auditor. So far, however, only 30% of the companies participating in the survey have used such certification of this information.
Cryptocurrencies
Sam Bankman-Fried convicted of fraud. The creator of the FTX exchange faces 115 years in prison
The 31-year-old founder and CEO of the FTX exchange has been found guilty. Sam Bankman-Fried heard in the courtroom accusations of cryptocurrency market manipulation, financial fraud related to the operation of FTX and illegal use of data. The court also did not remain indifferent to the issue of the alleged use of accumulated customer funds to illegally finance the Alameda Research fund. It is estimated that the value of the fraud reaches 10 billion dollars.
Artificial Intelligence (AI)
AI Safety Summit. An agreement on testing artificial intelligence models has been concluded
Participants of the AI Safety Summit in the UK have reached an agreement on the regulation of artificial intelligence safety. Under the agreement signed by Australia, Canada, Germany, France, Italy, Japan, South Korea, Singapore, the United Kingdom, the United States and the block of European Union countries, governments will now be able to test artificial intelligence models of eight leading companies before their release to the market. These are the companies: Amazon Web Services, Anthropic, Google, Google DeepMind, Inflection AI, Meta, Microsoft, Mistral AI and OpenAI. However, the success is only partial. The provision of models for testing will be voluntary.
Grok. Elon Musk presented his AI chatbot. "Loves sarcasm"
Elon Musk announced on X (Twitter) that the startup he founded, xAI, has developed the first version of a chatbot using artificial intelligence. The tool is called Grok-1 and in the billionaire's assessment "in some important respects, it is the best that currently exists". Grok offers access to information published on the X platform in real time. Thanks to this, it is able not only to retrieve current news on any topic, but also developed a specific sense of humor tinged with sarcasm. The model underlying it already surpasses the capabilities of GPT-3.5.
LinkedIn with a new recruitment tool. AI Chatbot will help in finding a job
LinkedIn has crossed the magical barrier of a billion users. On this occasion, the platform owner Microsoft has made available a new tool - an AI-based job search assistant. The tool is presented as a "coach forjob seekers". It is supposed to use AI to profile candidates for specific positions and advise job seekers themselves on which offers are worth applying for. In practice, users will be able to, for example, "talk" to the chat and get answers to questions about how to best prepare for a particular job interview or whether their skills match the job description.
AI to create a summary of comments? YouTube is testing a new solution
YouTube is testing new text solutions using artificial intelligence in a selected group of premium users. The first of these are comment section summaries, which are a summary of the discussion taking place under the videos. The platform is supposed to provide summaries created by AI along with a thematic division of comments. The option is to be available in the app for iOS and Android systems. As YouTube claims, the solution will be helpful for video authors, as it will help them join the discussion under the video faster and draw inspiration for creating further materials.
Privacy and cybersecurity
China at the forefront of cybersecurity-related companies
Chinese companies are doing increasingly well in the security industry, and their presence in the sector is growing - reports the Nikkei press agency. Currently, six of the top ten companies filing the most patents in this industry are companies from the PRC, and they are backed by companies such as Huawei or Tencent. According to Nikkei, the increase in the presence of Chinese enterprises in the cybersecurity sector is related to the PRC's pursuit of gaining a foothold in industries that affect the economic security of economies.
Meta banned from behavioral advertising on Facebook and Instagram in Europe
The European Data Protection Board (EDPB) has agreed to extend the ban on behavioral advertising on Facebook and Instagram imposed by Norway to all thirty countries of the European Union and the European Economic Area. These ads are a form of promotion based on a very detailed analysis of user data. For Meta, the owner of Facebook and Instagram, this ban poses a significant challenge, which is why the company was reluctant to limit this practice. However, it ultimately had to comply with the EDPB decision - for non-compliance with the ban, it faces a penalty of up to 4% of global turnover.
The Personal Data Protection Office has initiated proceedings against Open AI
It is not known how Chat GPT processes our personal data, and the information it generates is not always true. Therefore, the President of the Personal Data Protection Office has initiated proceedings against its creators, OpenAI, and has just addressed questions to them - reports prawo.pl. He wants to know, among other things, where and for what purpose the company obtained the complainant's data. Fulfilling information obligations or the right to be forgotten may be impossible in the case of Chat GPT.
ChatGPT and the increase in phishing attacks
According to a report published by the cybersecurity company SlashNext, the number of phishing emails has increased by as much as 1265% since the launch of ChatGPT. These types of attacks are most often aimed at obtaining authentication data, they can also lead to the installation of ransomware software.
Good job
Poles claim they are open to diversity in the workplace
8 out of 10 Poles declare that cooperation with a person of a different nationality is not a problem for them - according to the study "Diversity in the workplace" conducted by ARC Rynek i Opinia on behalf of the Pracuj.pl service. It turns out that most employees accept diversity in their place of employment. However, employers' actions are rated low. The study shows that just over half of the respondents feel that the company cares about the well-being of its employees.
Shortage of labor? Analysis of the Bureau of Investment and Economic Cycles
The Labor Market Indicator (LMI) informing in advance about future changes in the size of unemployment in October this year did not change significantly compared to the value from a month ago. This is a trend that we have been observing for at least a year - reports the Bureau of Investment and Economic Cycles. It is accompanied by a reduced creation of new jobs, with a relatively small influx of new unemployed. Entrepreneurs try to maintain the status quo in terms of employment size, realizing the difficulty in finding new employees with the right qualifications. The problem of labor shortage may intensify in the spring of next year, when construction stimulated by extraordinary demand for apartments will start in full swing.
Trivia
Google lawsuit: billions of dollars for a dominant market position. CEO defends the company's position
Google CEO, Sundar Pichai, upheld the company's decision to pay billions of dollars to remain the world's leading search engine. Pichai argued that he tried to provide users with "smooth and easy" service, even if it meant paying Apple and other technology companies exorbitant amounts. The United States Department of Justice argues that Google has laid the groundwork for maintaining a monopoly in the market, but Pichai disagrees, claiming that the company is the dominant search engine because it is better than its competitors.
NASA launches its own streaming service NASA
In November, NASA, the new streaming service of the American Space Agency, will appear. The platform will be completely free and will allow its users to watch live rocket launches, space walks and other events related to NASA missions. The service will also feature original video series that will introduce viewers to the secrets of the work of astronauts, scientists and agency engineers. There will also be interactive games, e-books, podcasts and photo galleries. Below is a trailer provided by NASA.
Digitized Editorial recommends
Autopsy: WeWork. From zero to hero and back
WeWork officially filed for bankruptcy, and its situation is dire. In the first half of 2023, the company recorded a net loss of 700 million dollars. At the same time, the company's current long-term obligations amount to 13.3 billion dollars in office space rental costs and 2.9 billion dollars in debt. The total market valuation of the company fell by over 99% after the publication of financial results.
However, it is hard to speak of a big surprise in this case. On the contrary, the first signs of the startup's current situation could be seen as early as 2015, just five years after it started operating. BuzzFeed News reporter Nitasha Tiku then obtained a series of internal company documents, which showed that its business model not only did not allow for great hopes for profit, but also that it was unsustainable in the long run. We now know that these reports turned out to be true.
The previously mentioned agreement on controlling AI products before their market release is only part of the AI Safety Summit held on November 1-2. Government representatives also signed the Bletchley Declaration. You can read more about this in the summary by ComputerWeekly.
Recognizing that artificial intelligence is increasingly used in "many areas of everyday life" - from health and education to transport and justice - the Bletchley Declaration noted that the summit on artificial intelligence safety is an "exceptional moment for action and confirmation of the need for safe development of artificial intelligence and the use of its capabilities for the benefit of all".
Business video animations. How to animate content and build a bond with the audience
Video content is the basis of modern internet marketing. Whether it's simple GIFs, TikTok and Instagram reels or longer formats on YouTube, videos have become the main carrier of advertising information and an excellent way to build audience engagement.
According to the study The State of Video Marketing 2023 conducted by HubSpot, video content has even fifty times greater chances of achieving organic search results than a regular text message. At the same time, as many as 91% of surveyed brands intended to use them in 2023 - the most since the publication of the first edition of the report in 2016.
Among the most popular video marketing formats, animations have come to the fore in recent years. In 2022, these types of films accounted for 55% of all advertising productions, and this percentage is likely to increase in the coming years. Not without reason.
Editor-in-chief of Digitized. He has been associated with journalism for almost a third of his life; he worked for the Polish editions of Playboy, CKM and Esquire magazines, as well as Well.pl and naTemat.pl services. In his texts, he tries to understand reality and describe it objectively. He remains skeptical about many phenomena, but is not afraid to admit a mistake and change his mind. A native of Warsaw. Privately, he is a seeker of sense in nonsense and order amidst entropy. He likes wise words.
The company Creandum published a report on the salaries of startup founders. The study was conducted among 650 entrepreneurs from 47 European countries, and the aim was to provide data on the average earnings of founders at various stages of their companies' development.
The results of the latest study conducted by the French-Polish Chamber of Commerce show that companies are increasingly focusing on ESG areas, and as many as 84% of the surveyed enterprises actively undertake actions aimed at combating climate change.
Many indications suggest that WeWork may file for bankruptcy as early as next week. The company, supported by SoftBank Group, is struggling with massive debt and large losses - reports Reuters.
The beginnings of almost every business, especially the first one in a founder's career, are a time of truly guerrilla actions. Initiating any venture requires combining many different roles at once. The founder must be a one-man band. This carries certain risks.
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