Microsoft's $1.5 Billion Power Move: Investing in AI and Shaping the Future of Tech in the Middle East

Good Morning, Team!

On this day in 1969, Sirhan Sirhan was convicted of assassinating Robert F. Kennedy, This event dramatically highlighted the importance of security and surveillance systems, a field in which AI is now playing an increasingly significant role. Let’s dive into the latest trends, insights, and developments in the fascinating world of artificial intelligence.

TRACK HIGHLIGHTS
Article Takeaways

• Microsoft’s $1.5 Billion Investment
• Baidu's Ernie Bot Achieves 200M Users
• Japanese Yen Hits 30 Year Low
• Adobe’s New Video AI Tool
• AMD Joins AI Revolution

MARKET PITSTOP
A Quick Look at the Market

Stock Market: Major Indexes closed mixed as Fed Chair Jerome Powell said the U.S. economy has not seen inflation come back to the central bank’s goal, pointing to the further unlikelihood that interest rate cuts are in the offing anytime soon.

Crypto: Bitcoin is approaching the $60k mark once again as the halving approaches, down over 10% in 5 days.

LAP 1 - Featured Story
Microsoft's $1.5 Billion Power Move: Investing in AI and Shaping the Future of Tech in the Middle East

• A $1.5 billion infusion is being made by Microsoft into the artificial intelligence company G42, based in the United Arab Emirates.
• The collaboration will involve G42 utilizing Microsoft Azure for its AI services and providing its Arabic language model, Jais, through Azure.
• The deal is underpinned by commitments to the U.S. and UAE governments to ensure secure and ethical use and development of AI technology.
• This significant partnership propels the UAE's drive to position itself as a leading tech hub in the Middle East.

Microsoft plans to invest $1.5 billion in the UAE-based AI firm, G42, with Microsoft President Brad Smith joining G42's board of directors. This investment strengthens the existing partnership between the two companies and will see G42 running its AI applications and services on Microsoft Azure cloud service. G42 has developed an Arabic large language model, Jais, which will be available via Azure.

This partnership is backed by assurances to the U.S. and UAE governments for secure, trusted, and responsible AI development. Despite past scrutiny over G42's links to China, the company has denied allegations and emphasized its alignment with U.S. partners. The Microsoft-G42 deal will boost the UAE's ambition to become a key technology hub in the Middle East.

LAP 2
Baidu's AI Chatbot Hits 200 Million Users Amid Rising Competition

• "Ernie Bot", an AI chatbot developed by Baidu, has achieved a user base of over 200 million and its API is utilized 200 million times daily.
• Baidu has secured 85,000 enterprise customers for Ernie Bot and has begun to monetize it, improving ad services and assisting other firms in creating their models.
• Despite Ernie Bot's popularity, competition is rising with other domestic AI services like "Kimi" from Moonshot AI, a start-up backed by Alibaba.

Baidu's AI chatbot, "Ernie Bot," has amassed over 200 million users since its public release eight months ago, with the bot's API now being used 200 million times per day. The number of enterprise clients for the chatbot has reached 85,000, according to Baidu CEO Robin Li. The company has begun generating revenue from Ernie, earning several hundred million yuan in Q4 by using AI to improve its ad services and aid other companies in building their models. Despite Ernie Bot's success, rival domestic AI services like the Alibaba-backed start-up Moonshot AI's "Kimi" chatbot are gaining ground.

BRAIN TEASER
A man pushes his car to a hotel and tells the owner he’s bankrupt. Why?

WALLSTREET PITSTOP
Yen Falls to 30-year Low Amid Rising Global Tensions

• A significant depreciation in the yen on Monday has resulted in the highest dollar-yen exchange rate since June 1990
• The dollar's broad strengthening, due to economic indicators delaying anticipated Federal Reserve rate cuts and mounting tensions in the Middle East
• After March's retail sales data exceeded expectations, the dollar rose further, and Japan's Finance Minister Shunichi Suzuki affirmed their readiness to step in and control currency movements

The yen depreciated on Monday, leading to the highest dollar-yen rate since June 1990, causing speculation about potential intervention from Japanese authorities. This fall in yen value is in the context of a generally stronger dollar, buoyed by economic data which suggests a delay in Fed rate cuts to September and increasing Middle East tensions. The dollar saw further gains following better-than-expected retail sales data in March. Japan's Finance Minister Shunichi Suzuki has stated that they are closely monitoring currency fluctuations and are ready to intervene if necessary.

Lap 3
Adobe's AI Video Revolution: Premiere Pro to Get Firefly Boost

• Adobe is creating new AI video tools for Premiere Pro, part of its Firefly family, allowing users to generate, edit, and extend video clips.
• Potential integrations with third-party companies like Runway, Pika Labs, and OpenAI's Sora models are under consideration, but not yet confirmed.
• Experts criticize the bot's lack of oversight and potential dangers.
• Despite the lack of a release date, Adobe's move towards partnerships with third-party AI companies aims to enhance accessibility for creative professionals.

Adobe is developing a generative AI video model for its Firefly family, offering new tools for the Premiere Pro video editing platform. The new tools, along with potential third-party integrations with Runway, Pika Labs, and OpenAI’s Sora models, will enable users to generate video, add or remove objects using text prompts and lengthen video clips. Despite showcasing the early capabilities of the video model, Adobe has not confirmed a release date or the certainty of integrating with AI models from other providers. Adobe's strategy to collaborate with third-party AI companies seems sensible for both Adobe's retention and for AI companies aiming to make their tools more accessible to creative professionals.

FUN FACT STOP
Octopuses have three hearts. Two pump blood to the gills, while the third pumps it to the rest of the body.

LAP 4
AMD Joins AI Revolution: Launches Powerful Processors for AI-Enabled PCs

• AMD unveils AI-enabled PC processors set to challenge competitors Nvidia and Intel.
• The new chips will be featured in HP and Lenovo PCs starting from Q2 2024.
• AI PCs' expected growth reaches 22% of all PCs in 2024.

Advanced Micro Devices (AMD) has revealed new processors designed for artificial intelligence-enabled PCs, aiming to compete with Nvidia and Intel in the AI PC market. The Ryzen Pro 8040 series processors for laptops and the Ryzen Pro 8000 series processors for desktops, built with advanced 4-nanometer technology, are expected to be available in HP and Lenovo PC models from Q2 2024. AMD, like Nvidia, outsources chip manufacturing to semiconductor foundries, primarily Taiwan Semiconductor Manufacturing Company. Despite the rapid adoption of AI PCs, predicted to constitute 22% of all PCs in 2024, challenges for vendors could include differentiation and revenue increase, according to Gartner.

FINAL LAP - FINANCE & THE STOCK MARKET
Mass Layoffs Rock Tesla

• Tesla layoffs hit high performers, some departments slashed. “I lost 20% of my team, some really good players too.”

• Fed Chair Powell says there has been a ‘lack of further progress’ this year on inflation.

• Trump Media stock sinks after company announces plans to launch live TV streaming platform.

• Amazon HQ2 was supposed to add jobs last year. It shed them instead.

BRAIN TEASER ANSWER

He’s playing Monopoly.

THE RACE CONCLUDES
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