OpenAI and Microsoft have announced that they are extending their partnership to work on more AI research and development.

What Is Open AI? 

OpenAI is a San Franciso based research organisation/capped-profit company that develops and promotes ‘friendly’ AI. Their research focuses on creating and promoting advanced AI technologies (including machine learning, robotics and natural language processing) to ensure that AI systems are safe and aligned with human values. OpenAI are currently in the news as the creators of ChatGPT which is a language model that uses the transformer architecture, a deep learning model, to generate text based on input data, and is based on advanced Natural Language Processing (NLP) and machine learning techniques.

Extend What Partnership?  

OpenAI first partnered with Microsoft in July 2019. The collaboration was aimed at bringing OpenAI’s technologies to Microsoft’s cloud services, allowing customers to build and run AI-powered applications and services.

How The Partnership Has Benefitted Both 

Examples of how the Microsft-OpenAI partnership has benefitted both include:

– Microsoft and OpenAI working on multiple supercomputing systems. For example, the supercomputer systems are powered by Microsoft’s Azure, which has been used to train all OpenAI’s models. These models are now deployed in Microsoft’s Azure to power products like GitHub Copilot, DALL·E 2 and ChatGPT.

– Microsoft being able to build one of the top five publicly disclosed supercomputers in the world in collaboration with (and exclusively for) OpenAI, and hosted in Azure.

– OpenAI’s models being deployed across Microsoft’s consumer and enterprise products and Microsoft introducing new categories of digital experiences built on OpenAI’s technology, e.g. Microsoft’s Azure OpenAI Service. This enables developers to build AI apps through direct access to OpenAI models through Azure.

– Microsoft becoming OpenAI’s exclusive cloud provider with Azure powering all OpenAI workloads across research, products, and API services.

Not Everybody’s Happy With The Capabilities Of New AI Models 

Recent advancements in publicly available AI such as ChatGPT and Generative AI have shaken-up the market and left some companies feeling distinctly unhappy. Generative AI systems can generate new content such as text, images, music, or video based on examples or patterns learned from existing data and recent spats making the news include Stock picture agency Getty Images, for example, commencing legal action in the High Court of Justice in London against Stability AI for allegedly unlawfully copying and processing millions of images covered by copyright to train its software.

In contrast to Getty Images, however, Getty’s competitor in the stock photo market ‘Shutterstock’ has opted to strike a deal in developing OpenAI’s Dall-E 2 AI image-generating platform using Shutterstock libraries to train and feed the algorithm.

What Does This Mean For Your Business? 

Microsoft has realised the value and potential of AI and its partnership with OpenAI has given it a strategic and competitive advantage in areas like supercomputing and the extended partnership will allow it to add value and stay ahead by deploying OpenAI’s models across its consumer and enterprise products. Specifically, Microsoft’s (hybrid) cloud computing platform ‘Azure’ is likely to get a considerable boost with OpenAI’s models. Although OpenAI’s own brand has received a considerable boost over the popularity of ChatGPT, the continued partnership with Microsoft is a way for OpenAI to tie itself in even more closely with a major player, gain massive distribution for its products, and grow its influence and market share in the emerging AI world. This story also shows how AI is a major growth area, and it shows the power of strategic alliances and synergies in gaining dominance quickly in new markets with new technologies. One interesting aspect of this story is how image companies like Shutterstock appear to have realised the need to get on board quickly with AI technologies and could steal a march on larger competitor Getty by doing so.

In this article, we look at how significant job cuts and other factors are evidence of a tech recession, what the causes are, plus what tech businesses can do to survive and move forward.

Tech Recession Evidence – Job Cuts 

Much of the evidence of a tech recession has come in the form of tech companies’ laying-off large numbers of employees, most notably since November last year. For example:

Meta 

In November, Meta announced that it was laying off a massive 13 per cent of its workforce globally as part of re-structuring market uncertainty about the Metaverse vision. Meta’s CEO, Mark Zuckerberg, announced the 11,000-employee layoff from Meta, the parent company of Facebook, Instagram, and WhatsApp, after Reality Labs, the division building the metaverse, suffered £3.16bn losses between July and September this year (the largest loss the company had made). The previous quarter also showed disappointing results. Although a global economic slowdown is a key factor in the tech recession, Meta’s lay-offs and poor performance were also the result of a very expensive re-brand and a lack of investor confidence in (and understanding of) the ‘Metaverse.’

Google 

This month, Google’s parent company Alphabet laid off 12,000 employees, which represents around 6 per cent of its workforce. Lay-offs included many senior leaders and some staff members who had been at Google since the early days. Apart from several hundred job losses for sales employees in 2009, Google had never experienced a major layoff. Tech commentators have also noted how the many famous perks that Google workers traditionally enjoyed have been seriously curtailed. It has also been reported that hedge fund mogul Christopher Hohn (in communication with Alphabet CEO Sundar Pichai) has argued for the need for more drastic layoffs, e.g. around 20 per cent.

Spotify 

Sweden-based US-listed music streaming company Spotify recently cut 6 per cent of workforce (around 600 people) in a cost-saving exercise. As well as employees, the job cuts included its chief content officer Dawn Ostroff. Investors seemed to favour the cost-cutting as shares rose by more than 4 per cent in pre-market trading following the job losses. Spotify also announced (October) that it would slow down hiring for the rest of the year and into 2023.

Microsoft 

This month, Microsoft has also announced that it’s laying-off 10,000 employees across its global operations. The company employees 220,000 people (6,000 in the UK). Microsoft’s CEO, Satya Nadella, reportedly informed staff in a blog post that less than 5 per cent of the company’s worldwide workforce will be affected by layoffs. He also said, however, that hiring would continue in key sectors despite the cutbacks.

Salesforce 

Business software company Salesforce has announced that it will be laying off 8,000 workers, i.e. 10 per cent of its worldwide staff. The reported reason is that the company hired too many people during the pandemic and now needs to adapt to an economic slowdown.

Twitter 

Many of Twitter’s problems followed the takeover by Elon Musk, which led to a 40 per cent drop in revenue as 500 advertisers pulled out (90 per cent of Twitter revenue was, until recently, from advertising). The company slashed roughly 50 per cent of its workforce (reports showed Musk’s leadership sacking an estimated 80 per cent of contract employees without formal notice). Sackings included top executives, e.g. Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal and legal affairs and policy chief Vijaya Gadd. Thousands of (outsourced) content moderators were dropped, which fuelled fears of a drop in quality and possible rise of misinformation which deterred advertisers even more and knocked investor confidence. Recently, it’s been reported that Twitter is conducting more cost-cutting efforts to lessen its revenue drops such as auctioning its San Francisco office (surplus) assets including a blue neon sign of Twitter’s bird logo.

SAP 

The German software giant SAP has also announced layoffs of 3,000 employees as part of a “targeted restructuring programme” to “strengthen its core business” and “improve efficiency.” 

The company anticipates that the restructuring could deliver annual savings of 300-350 million euros from 2024 onwards.

Why? 

There are several main reasons for what appears to be tech recession, not just in the US, but globally. For example:

– Cost savings as consumers are squeezed by high living costs and businesses reduce their advertising, i.e. increased caution among consumers and businesses.

– A downwards shift in spending attitudes among personal and business customers alike.

– The US tech sector trying to adapt to the tougher economy and fears of a recession in the world’s largest economy.

– Businesses globally practicing prudence because certain parts of the world are in a recession, and other parts are expecting one because of the slowing economy.

– Tech businesses finding themselves with an excessive head count following a hiring binge over many years, and particularly since the start of Covid-19 to meet surging demand.

– A worsening business environment, e.g. worries about an economic downturn, high inflation rates, increasing interest rates, and other issues.

– Pressure from the fallout from Russia’s war in Ukraine on the global economy, e.g. pressures in the global supply chain from costs related to inflation, followed by rising interest rates to tackle the price pressures, resulting in dented demand among consumers and business customers.

– Preparation for a recession, expected as a result of aggressive interest rate hikes by global central banks to curb inflation.

PC Market and Intel 

A tech recession is also evident with companies like Intel (chip makers). For example, Intel suffered a double-digit revenue decline in Q4 2022 with its two biggest business units being hit as a result of a massive PC market slump. An IDC report showed that PC sales had fallen by 28.1 per cent during the same period. Gartner also reported that this was the steepest decline since it started tracking the PC market in the mid-1990s.

Why The Decline In The PC Market? 

Reasons for a decline in the PC market that have affected chip manufacturers like Intel include:

– The shift to mobile devices. The rise of smartphones and tablets has reduced the need for traditional desktop and laptop computers as consumers shift towards more portable and convenient devices for personal use.

– The Increased cost of PCs. With the shift towards more premium, high-performance devices, the cost of traditional PCs has gone up, making them less accessible to budget-conscious consumers.

– Substitution with cloud computing. Cloud computing has allowed users to access computing resources and software over the internet, reducing the need for personal devices.

– The slower rate of innovation in PC technology. The pace of innovation in the PC market has slowed, reducing consumer interest and investment in upgrading their devices.

– The economic downturn affecting consumer spending on items like PCs. Economic recessions and downturns have led to a reduction in consumer spending on non-essential items, such as PCs, as individuals prioritize their financial stability.

What Can Tech Companies Do? 

Some of the ways that the big tech companies could combat the tech recession, besides cost cutting through job losses, could include:

– Diversification of revenue streams.

– Innovation and development of new products and services.

– Expansion into new markets and industries.

– Investment in research and development.

– Partnership and collaboration with other companies.

– Improving efficiency and productivity.

– Building a strong brand reputation.

– Focusing on customer satisfaction and experience.

– Optimising pricing and marketing strategies.

What Does This Mean For Your Business?

Despite many businesses being on a hiring binge for many years and enjoying huge demand during the pandemic, lots of tech businesses have now found themselves with too many staff in tough market conditions in a post-pandemic world, during an economic downturn that’s bracing itself for worsening conditions. The resulting knock to consumer and business confidence and spending power has led to a decline in adverting spend and spending generally, leaving tech businesses with little choice but to cut costs, trim perks, focus on the core business, and find ways (such as those listed above) to survive and move forward amid further gloomy projections. For many tech businesses, it’s been the first time they’ve had to make major job cuts and there are likely to be more going forward.

Researchers at ETH Zurich have developed a zero-energy condenser that can harvest drinking water from the humidity in the atmosphere 24/7.

Could Solve Shortage Challenges 

In some parts of the world, fresh drinking water is scare. Two of the main options, therefore, are:

– Communities near the ocean can desalinate sea water but this requires a large amount of energy.

– Communities further from the coast can try to condense atmospheric humidity through cooling, either through processes that require high energy input or by using “passive” technologies that use the temperature swing between day and night. However, with passive technologies e.g., dew- collecting foils, water can be extracted only at night because the daytime sun’s heats on the foil makes condensation impossible.

The New ETH Zurich Condenser 

The technology behind the new ETH Zurich Condenser means that it can harvest water 24 hours around the clock, with no energy input, even under the blazing sun.

Self-Cooling 

The condenser consists of a specially coated glass pane, which reflects solar radiation, and also radiates away its own heat through the atmosphere. This means that it can cool itself down to as much as 15 degrees Celsius below the ambient temperature.

On the underside of the pane, water vapour from the air condenses into water in a similar way to how poorly insulated windows get condensation in winter.

Protection From Radiation Too 

The glass pane on the condenser is also coated with specifically designed polymer and silver layers so that pane emits infrared radiation at a specific wavelength window to the outer space, with no absorption by the atmosphere nor reflection back onto the pane. Also, the device features a cone- shaped radiation shield designed to deflect heat radiation from the atmosphere, shield the pane from incoming solar radiation, and allow the device to radiate heat outward. This enables the condenser to self- cool, fully passively.

Why No Energy Needed? 

Unlike other technologies which require energy to be used in wiping the condensed water from the surface of the condenser to collect it, ETH Zurich’s condenser has a superhydrophobic (extremely water- repellent) coating on the underside of the pane. This means that the condensed water beads up and runs off on its own accord, thereby requiring no energy input.

Variations 

The ETH Zurich researchers have noted how there is even more scope to develop the condenser technology. For example, it could be combined with other methods, such as water desalination, to increase yield.

What Does This Mean For Your Organisation? 

The fact that the coated panes and condenser are relatively simple to build, and that the unit requires no energy and appears to work well could make it a valuable tool for countries with water scarcity and, in particular, for developing and emerging countries. The fact that it makes drinking water from the air (humidity) also means that, unlike desalination technology, it is not limited to just being used in coastal areas. It’s also worth noting that, just as solar cells feature several modules set up next to each other, several water condensers could also be placed side by side to piece together a large-scale system where required thereby making it an even more practical system.

If you’d like to avoid accidentally moving the cursor around while typing on your Windows 11 laptop, here’s how to disable the touchpad:

– On the taskbar, right-click the Windows start button and select ‘Settings.’

– Left-hand sidebar, select ‘Bluetooth & devices.’

– In the right-hand pane, click the ‘Touchpad’ heading.

– Move the toggle in the slider to ‘Off’ changing the slider from blue to grey.

Blockchain data platform Chainanalysis has reported that cybercriminals have seen a 40 per cent fall in their earnings as more people have refused to pay the ransom following ransomware attacks.

More Strains With Shorter Lifespans

However, the number of unique ransomware strains being used in attacks increased dramatically in 2022 (Fortinet). Also, Chainanalysis reports that ransomware lifespans are dropping. For example, in 2022, the average ransomware strain remained active for just 70 days, down from 153 in 2021 and 265 in 2020.

How Does Chainanalysis Know Criminals Get Paid? 

Being a blockchain data platform (blockchain is the technology behind cryptocurrencies) Chainanalysis can track money flowing in and out of Bitcoin wallets. Ransomware crews use bitcoin wallets to collect ransoms and retain their anonymity. Also, evidence from cyber insurance firms who are usually the ones reimbursing victims for ransomware payments, show that these payments are down.

Why Are People Refusing To Pay Ransomware? 

There are several reasons why more victims are refusing to pay the ransomware ransom, including:

– Increased awareness. More people are becoming aware of the risks, so this has led to improved cyber-security at organisations, while increased awareness of the potential consequences of paying the ransom has led to many choosing not to do so.

– Improved and more secure backups. With the increased use of more secure cloud-based backups and other disaster recovery solutions, more people are able to recover their data without paying the ransom. It’s worth noting that insurance companies are driving security by tightening underwriting standards, and by not renewing a policy unless the insured has comprehensive backup systems, uses EDR, and has multi-authentication.

– Greater segmentation of data backups, resulting in less material business impact as a result of an attack, thereby reducing the economic justification to pay.

– US sanctions against hacker groups, e.g. those Russia’s Federal Security Service, have made paying some groups legally risky.

– Increased openness due to how common ransomware attacks have become. For example, a ransomware attack is now less of a PR disaster for companies, meaning that companies are less likely to keep quiet and pay the money to stay out of the news.

Why Are Ransomware Lifespans Dropping? 

There are several reasons why ransomware lifespans are dropping (including those mentioned above), such as:

– The increased use of anti-ransomware software. As more organisations and individuals use anti-ransomware software to protect their systems, the lifespan of ransomware attacks may be shorter, as the malware is detected and neutralised more quickly.

– Improved incident response. As organisations and individuals become more familiar with the signs of a ransomware attack and have better incident response plans in place, they are able to quickly detect and respond to the attack, which can shorten the lifespan of the ransomware.

– The development of decryption tools, some security researchers have been able to develop decryption tools that can help victims recover their data without paying the ransom. This can significantly shorten the lifespan of a ransomware attack.

– More effective law enforcement action. Law enforcement agencies have been successful in shutting down some larger ransomware operations and gangs. This can also shorten the lifespan of a ransomware attack.

– Cyber insurance and the involvement of specialised teams. More companies are now using cyber insurance and have specialised teams to deal with ransomware attacks, this also can shorten the lifespan of a ransomware attack.

What Does This Mean For Your Business? 

Criminal earnings from ransomware are down for the reasons mentioned above, and although larger ransomware gangs have been disrupted, there are now many smaller groups operating. It’s also worth noting that new strains of ransomware are being developed all the time, so the threat continues to be present (and is growing as previously stated). With this in mind, businesses should continue to focus on not falling victim to ransomware attacks in the first place. Measures businesses can take include having recurring meetings with all relevant teams/persons (security, networking, IT, server administration, PR, finance) and the company leadership to develop a clear picture of the strengths and weaknesses/vulnerabilities and establish how the business can remain secure and understand who’s responsible for all aspects of security. Also, seeking professional advice about cyber security and implementing best practices, e.g. with data backups and other security measures, can help keep the business safe from new as well as existing ransomware strains.

22 passengers experienced the UK’s first full-size autonomous bus for the first time as part of a testing process by Stagecoach, the UK’s largest bus and coach operator.

Trial Over The Forth Bridge 

The ground-breaking trial of a full-size autonomous single-decker bus, carrying a mixture of invited members of the Co-Design Panel, volunteers helping Stagecoach plus the project’s partners took place on 20 January over the Forth Road Bridge near Edinburgh in East Scotland.

First Registered, Full Size Autonomous Bus Service 

The trial precedes the introduction of what will be the first registered service in the UK to use full sized autonomous buses, as part of the CAVForth project, which is part funded by the UK Government’s Centre for Connected and Autonomous Vehicles.

Up To 50mph 

The service will use a fleet of five Alexander Dennis Enviro200AV vehicles, covering a 14-mile route, in mixed traffic, at up to 50mph across the Forth Road Bridge from Ferrytoll Park & Ride in Fife to Edinburgh Park Transport Interchange. It is anticipated that that the service will operate a frequent timetable with the capacity for around 10,000 journeys per week.

Milestone In The UK 

Louise Simpson, Operations Director and CAVForth lead project manager for Stagecoach, said about the trial: “We are really excited to have reached this next major milestone in our project plan to deliver the UK’s first full sized autonomous bus, which has seen us successfully carry a group of passengers on one of the new buses. Until today, only project team members had been able to trial the autonomous service so it’s great that our Co-Design Panel have had this opportunity and we welcome any views they have to ensure we deliver a great, inclusive, and accessible service to our customers when we launch in the spring.”   

Already Operating In Other Parts Of The World 

Although the service will be a UK first, there are full size autonomous bus services operating in several cities around the world. Some examples include:

– In Europe, the French city of Lyon has been running a fleet of autonomous electric buses since 2018.

– In the United States, the city of Las Vegas has been operating a fleet of autonomous electric buses on a fixed route since 2017.

– In Asia, the city of Singapore has been testing autonomous buses on designated roads since 2016.

– In China, several cities such as Beijing, Shanghai, and Xiongan, have been testing and operating autonomous buses on the public roads.

It’s worth noting that the extent of autonomy varies between different systems, and some still require a human operator on board to take over in certain situations.

What Does This Mean For Your Business? 

Up until now in the UK, a lot has been promised and expected with regards to autonomous vehicles, with multiple trials including self-driving cars, buses, and trucks. These trials, however, have primarily been conducted in controlled environments such as closed test tracks and designated testing zones, so a real road test of a full size bus with passengers, followed by the introduction of a regular service from this coming spring is a significant development in the UK.

For bus operators, an autonomous service on a fixed route could bring reduced operating costs and increased efficiency, hopefully improved safety, plus it could offer greater flexibility (24/7 operation), which could lead to increased service frequency and improved service quality. Also, operating a safe, successful, full size autonomous bus service in one part of the UK could increase confidence and lead to the introduction of similar services elsewhere.