9 min read

May 22 2023 - Tech & Fast Food

May 22 2023 - Tech & Fast Food

👋Happy Monday friends. We're back with another busy week of Fed meetings/data, flurry of Meta news and AI madness as always. Let's get into it –

Quick Take

  • As everyone attempts to take on Twitter (Bluesky, Mastodon, etc...) maybe Instagram is an unlikely favorite to displace the platform?
  • Meta with a potential Magic Leap partnership + layoffs this this week
  • Google will continue to be the default search engine for Samsung devices
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Top Stories

Instagram is reportedly working on a new text-based app that could serve as a Twitter competitor. The app, codenamed P92 or Barcelona, will allow users to sign in with their Instagram credentials, with their followers, handle, bio, and verification transferring over. Users will be able to make text posts up to 500 characters long, including links, photos, and videos. The leaked marketing slide suggests that the app will have moderation controls and compatibility with other apps, allowing users to search for, follow, and interact with profiles and content

Apple has prohibited its employees from using AI tools like OpenAI's ChatGPT due to concerns about potential data leaks. Apple is particularly cautious because OpenAI stores all interactions between users and ChatGPT by default, which could include confidential information. The ban on ChatGPT usage is not exclusive to Apple, as other companies like JP Morgan, Verizon, and Amazon have also implemented similar restrictions. It is noteworthy that Apple's ban comes at a time when OpenAI launched an iOS app for ChatGPT, allowing voice input and availability in the US, with plans for expansion to other countries and an Android version.

Federal Reserve Chair Jerome Powell stated that inflation remains significantly above the central bank's target, but no decisions have been made regarding raising interest rates in the June meeting. Powell highlighted that the data supports the need for continued efforts to bring inflation down but acknowledged that recent banking sector turmoil may impact economic growth and influence interest rate decisions.

The Supreme Court ruled on the case involving Andy Warhol's use of Lynn Goldsmith's photograph of Prince, stating that Warhol should have paid a licensing fee to Goldsmith. However, the ruling seems to be based on a narrow issue of licensing and does not address the broader question of whether Warhol had the right to use Goldsmith's image at all. The decision may not have a significant impact on appropriation art as a whole, as it primarily focuses on the specific licensing matter. The court's statement that it expresses no opinion on the creation, display, or sale of Warhol's original Prince Series works suggests that those works can continue to exist and be circulated. While the ruling provides some relief to museums and artists who own appropriations, it may not have a significant impact on most artists who do not have a substantial licensing market like Warhol. The court's emphasis on licensing may raise questions about the fair use of someone else's creation in cases involving commerce, such as licensing for magazines, museum gift shops, or merchandise.

Meta is reportedly in talks with Magic Leap for a multiyear agreement. The discussions involve intellectual property licensing and contract manufacturing in North America to support Meta's ambition of building mainstream AR products. While a joint Meta-Magic Leap headset is not expected, Magic Leap's technology, particularly its waveguides for realistic image projection, could play a role in developing the metaverse.

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Rundown
  • Samsung has reversed its decision to make Bing the default search engine on its in-house Internet Browser. Samsung's Internet Browser has traditionally used Google as its default search engine, but the company had been considering a switch to Bing, which raised concerns among Google. However, Samsung has now paused the review and decided to stick with Google due to concerns about its relationship with Google and the market's perception of the change.
  • Members of WGA East employed by Hearst Magazines Media have overwhelmingly ratified their first-ever contract with the company. The contract covers 560 writers, producers, and editors at 28 of Hearst's brands, including Esquire, Cosmopolitan, Harper's Bazaar, and Elle. The agreement was reached after two years of negotiations, which included a threatened strike, a half-day walkout, and the union filing unfair labor practices charges against the company. The new contract includes salary increases, minimum severance guarantees, anti-discrimination and anti-harassment measures, establishment of an equity committee, and protection of current time off and family leave. The WGA East sees this contract as a significant achievement and an example of the power of collective action.
  • Wendy's plans to introduce a system of autonomous robots to deliver food to customers in its parking lots. Customers will order food through mobile devices, then check in at an Instant Pickup kiosk and wait for a temperature-controlled robot to transport their order underground from the kitchen to their car. Wendy's aims to cater to the increasing preference for mobile and online ordering and hopes to enhance its digital offerings. Additionally, Wendy's recently announced plans to test AI technology in its drive-thrus, utilizing chatbots to recognize menu vernacular and upsell customers.
  • Butchershop, a San Francisco agency known for its "beat failure" mantra, has unexpectedly closed down, leaving approximately 100 employees without jobs. Sources close to the agency have stated that it shut down without notice and may consider filing for bankruptcy. Founder and Global CEO Trevor Hubbard has not responded to inquiries, and the agency's spokesperson has left and declined to comment. Butchershop had a strong focus on tech clients and reported $12 million in revenue in 2021, projecting $30 million for 2022. The agency aimed to evolve from a creative design agency to a growth and transformation company, catering to startups and challengers in need of brand and company development.
  • Uber's head of diversity, Bo Young Lee, has been placed on leave after employees complained about an event she moderated titled "Don't Call Me Karen." The event, focusing on the experiences of white women at Uber, was criticized for being insensitive to people of color. Employees felt lectured on the challenges faced by white women and the use of the term "Karen.". Employees greeted the news that Ms. Lee was stepping away as a sign that Uber’s leadership was taking their complaints seriously.
  • Apple is partnering with Nike to sell Ted Lasso merchandise on its online store, marking the first time the company offers clothing tied to its TV+ content. The move aims to promote the hit show, which has been a breakout success for Apple's TV+ service.
  • Cristina Diezhandino, the global chief marketing officer at Diageo, emphasized the importance of brand-building in the success of Johnnie Walker and other brands. She stated that a brand can only last for 200 years if it is meaningful to people, and brand-building is the "magic" that allows that to happen. Diezhandino highlighted the need for investment in a brand and credited fabulous creative work behind successful brands.
  • Amazon is seeking to abandon several Amazon Fresh stores in the Midwest as the company slows down new openings for the grocery chain. Six stores in the Minneapolis/St. Paul area and one outside Detroit have been listed for sublease. Additionally, Amazon is facing a lawsuit from a landlord at a planned Amazon Fresh location in Philadelphia. The landlord is seeking $180,000 in rent and other expenses. Amazon has been scaling back on new Amazon Fresh store openings for some time, even after preparing the locations for opening. Building a grocery presence has been a priority for Amazon, and it continues to refine its store formats to better serve customers.
  • The e-sports industry in the United States is facing economic challenges as team owners struggle to turn a profit and interest from viewers declines. Several prominent teams are selling their organizations, cutting costs, and laying off employees. The League of Legends World Championship, one of the biggest e-sports leagues, saw a decline in viewership. The industry has been hit by a decrease in revenue, sponsorship cuts, and operating losses.
  • Google has clarified that it will not delete old YouTube accounts with videos. After facing pushback, Google updated its blog post to specify that only empty accounts will be deleted, not those with videos. The plan to purge inactive accounts remains intact, with deletions starting in December 2023 in a phased approach.
  • FaZe Clan, a prominent esports organization, has recently laid off around 40 percent of its remaining staff. This is the second layoff for the organization in 2023, following a previous layoff of approximately 20 percent. The CEO, Lee Trink, cited broader economic challenges and the need to redefine the company's structure as reasons for the decision. The exact number of affected employees is unclear, but FaZe employs up to 200 people. The layoffs come amidst a decline in company's stock price, which has dropped significantly since reaching a high in August 2022. The organization has also faced criticism for mismanagement and a reputation for toxicity and problematic content.
  • Disneyland has presented its 30-year expansion plan, known as DisneylandForward, to leaders in Anaheim. The plan aims to bring innovation and growth to the area, with estimated projections indicating the creation of 2,200 jobs. Disney is seeking flexibility in zoning restrictions to allow for diverse and integrated experiences that meet the expectations of modern theme park visitors.
  • Uber is reportedly looking to sublease a significant portion of its office space in San Francisco's Mission Bay area. The ride-hailing company is seeking to about one-third of its headquarters space. The move comes as major tech companies in San Francisco are offloading office space due to the rise of remote work, causing the city's office vacancy rate to reach record highs. Other companies like Salesforce and Meta have also listed office space for lease or sublease, contributing to the increase in available office space in the city.
  • Flynn Restaurant Group (owner of eateries including Wendy's, Applebee’s, Taco Bell and Pizza Hut) is using data analytics to make more informed decisions about menu pricing. The company's data team collects internal and competitor data to analyze pricing strategies by studying competitor prices and analyzing variables that impact sales, Flynn can adjust prices for specific items without hurting profit. The data team also provides monthly reports on competitors' pricing moves, allowing Flynn to tailor pricing decisions to individual geographies. The company has seen increased profits as a result of its data-driven approach and may consider reducing prices if the economy enters a recession.
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Cool Thing

A new AI research paper introduces DragGAN, a powerful image manipulation tool that allows users to click and drag elements of a picture to change their appearance. This tool goes beyond simply smudging pixels, using AI to regenerate the underlying object. Users can adjust dimensions, rotate images as if they were 3D, and even manipulate landscapes.

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Published by:

Joe Nash

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