Apple acquires Canadian artificial intelligence startup; new chips could promise lower AI costs and environmental impact; rumors of new pricing and product bundles buzz; Citrix is targeting partners and customers. Is anger and the firing of engineers the “new normal”? ”
That’s all for the “How to Lose Friends and Influence People” edition of Hashtag Trends. I'm your host, Jim Love. He is his CIO for IT World in Canada and TechNewsDay in the US.
Apple has acquired DarwinAI, a Canadian artificial intelligence startup focused on using AI for quality inspection in manufacturing. The acquisition highlights Apple's growing investment in generative AI technology, an area the iPhone maker has said will be a key focus area.
Apple has been tight-lipped about its specific plans, but CEO Tim Cook recently hinted that the company would share more details about its generative AI efforts later this year. Cook called generative AI a “huge opportunity” for Apple.
The deal with DarwinAI follows yesterday's publication by Apple researchers of an academic paper exploring multimodal large-scale language models focused on computer vision and pattern recognition, with Apple clearly moving deeper into the research. ing.
Financial terms were not disclosed, but Apple confirmed the deal with its standard statement that it buys small tech companies from time to time. However, the move signals that Apple is ramping up its AI capabilities and is likely to integrate generative AI across its hardware, software, and service products.
As one of the most valuable companies in the world, Apple's moves in the generative AI space are noteworthy.
Sources include Axios and Cornell University
While big tech companies like Nvidia and Intel dominate the headlines for artificial intelligence hardware, a startup called Groq is quietly establishing itself as a powerful new player in designing and manufacturing chips for this AI. Masu.
This is not Elon Musk's AI chat bot spelled GRO K. This is GROQ. Although the names are similar, they are completely different companies.
Mountain View, California-based Groq has developed a specialized AI chip called a “language processing unit,” or LPU. The company, which is backed by investors including Tiger Global and Lee Fixel's Addition, claims these LPU chips can run AI models 10 times faster than traditional hardware at just one-tenth the cost. There is.
As the recent explosion in generative AI increases the demand for computing power, Groq founder and CEO Jonathan Ross believes his startup's technology has the potential to change the economics of the industry. states. He estimates that OpenAI will need $7 trillion in new chip business, but Groq could achieve similar functionality for just $700 billion thanks to more efficient chips. Masu.
With approximately 4,500 LPU chips already deployed and plans to deploy 1.5 million LPU chips by the end of next year, Groq believes its technology will be a key enabler as AI becomes mainstream across industries. I'm betting big on that. In addition to selling cloud access to developers, the company sells hardware directly to companies that operate their own data centers.
So while Nvidia's annual conference next week will likely garner a lot of attention, the Silicon Valley startup could cause an unexpected disruption in the crucial AI chip race.
As concerns grow over the technology's massive capital requirements and carbon footprint, Groq presents the attractive prospect of delivering the same cutting-edge AI capabilities at a fraction of the cost and environmental impact. I am.
There are new reports that Citrix has made significant changes to its partner program, which has left many in the channel stunned and outraged.
Starting Sept. 1, Citrix plans to double the price of monthly partner licenses unless partners commit to paying for a full year upfront, according to people briefed on the new arrangement. Affected products will be bundled into the new “Citrix Universal for CSP” product.
Citrix reportedly justified the price increase by arguing that there was too much cost uncertainty with the flexible monthly model. However, partners who attended the presentation said there was an atmosphere of “stunned silence followed by anger and disbelief” over the changes.
In addition to effectively doubling the monthly license price, Citrix is also said to be significantly reducing the rebates it pays to channel partners. This one-two punch could force many companies to raise prices for customers or shift focus to competing services such as Microsoft's Windows 365 Cloud PC.
And if those two aren't enough, Citrix is also rumored to be announcing a new “platform license,” echoing the controversial bundling strategy that semiconductor giant Broadcom adopted after its acquisition of VMWare. Many people see it as hiring.
Platform License is reported to be an invitation-only offering that bundles all of Citrix's existing products, including virtual desktop infrastructure, application delivery controllers, and analytics tools.
This reflects Broadcom's recent move following the VMware acquisition to stop selling certain VMware products individually to encourage adoption of more comprehensive bundles.
The reported move comes as Citrix parent company Cloud Software Group faces increasing competition, including the possibility of VMware's desktop virtualization products being spun out under new ownership of Broadcom. It was held in
With over 2 million active Citrix subscribers, the price change could cause significant disruption across the virtual desktop infrastructure space.
Citrix has so far refused to confirm or deny these changes, and partners are anxiously awaiting a formal announcement regarding the controversial new program.
One thing is certain. If you rely on partner support and Citrix is a significant part of your technology stack, it may be worth talking to your support partner to consider alternatives. Instead of making hasty decisions, you should take the time to educate yourself. In advance of potential costs and support impacts.
Source: The Register (Story 1 and Story 2)
The technology industry is facing a new harsh reality. Mass layoffs could become the norm rather than the exception.
According to a TechSpot article, an astonishing 209 tech companies have already cut more than 50,000 employees in the first quarter of 2024, according to data tracked by Layoffs.fyi. This follows around 270,000 tech workers losing their jobs in 2023.
It's not just startups that are feeling the squeeze. Industry giants such as Alphabet, Amazon, Microsoft, and Meta have implemented large-scale layoffs in recent months. If these numbers are correct, this would be his second largest after his 2001 dot-com bust.
Companies initially blamed overemployment due to the pandemic and inflation, but that story has faded this year as many of the big tech companies are sitting on large amounts of cash. Experts suggest that the real reason for the layoffs is to support stock prices.
In addition to job insecurity, engineers' high salaries and benefits, which have increased over the years, appear to have stagnated. Compensation data shows that entry-level AI roles still command six figures, but raises are no longer a given.
For technology workers accustomed to mass hiring, the landscape has changed dramatically. Some people leave the industry altogether or settle for less lucrative positions with fewer perks.
The new normal of cyclical layoffs is likely to continue across Silicon Valley and beyond, as companies continue to prioritize cost reductions to please Wall Street. As one professor has warned, layoffs are likely to continue for some time, as technology companies' employees and investors have largely accepted this harsh reality.
We published an article in Weekend Edition about how some cybersecurity professionals are turning to the dark web to find new jobs or supplement what they feel are inadequate wages.
I would like to emphasize that I had to lay off employees not to increase profits for shareholders, but to ensure the survival of the company. It was very painful and no matter how we tried to deal with it, I think it angered the employee even when I explained that I hadn't received a paycheck for a year.
Imagine the outrage at a company holding huge amounts of cash and letting people go just because its stock price will go up a few percentage points in the short term. While this is not a recipe for employee engagement and should not be tolerated under any circumstances, it does lead to employees taking actions that could ultimately harm the tech industry.
We are smart people. There needs to be a better way to handle this.
That's today's show.
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