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Expert interviews
A former competitor shares some interesting insights on commerce and social commerce. Touches on the Amazon and Meta's recent partnership.
Chinese players like Temu, Shein, and TikTok could be major forces in the space. The expert sees that Amazon is trying to hedge against the rise of social commerce with its own social marketing programs and partnerships with companies like Meta.
The expert sees an increased shift toward social commerce in the next 3-4 years (especially from the younger demographic). In his view, the recently announced Amazon and Meta partnership is a first step, and he sees them aggressively ramping that up.
Amazon has started to share more data with its seller, whereas before, it was much more of a black box approach.
The expert thinks TikTok will continue to pour a ton of money into shopping but believes Amazon has a large moat in technology and maturity of the marketplace. Amazon has at least a couple of years on some of these newer players.
AI will bring a lot to the table with a more personalized marketplace.Amazon's data is key here, and the partnership with Meta could mean even more data.

Former Microsoft Director who worked closely with OpenAI’s team and helped incubate Copilot while there shares some really valuable takes and insights
The scenario in which Sam and the team are back at OpenAI is the best one. The expert heard that over the weekend, because of the OpenAI saga, maybe as many as 2 million developers have started to build their projects on multiple AI APIs (such as competitor Anthtropic, Hunging Face, etc.)
In his view, it is a risk if Microsoft joins the OpenAI board in case something goes wrong at OpenAI or AGI.
A new wave of SLM is coming, which will be faster and cheaper in computing. The expert names Microsoft Orca-2 (research paper is out) as an interesting project. Orca-2 is trained on synthetic data from GPT-4.0.
He worked on the team that defined the price point for Copilot. The productivity number portrayed is 66% productivity gains from Copilot, but he thinks it's more in the 70-80% range.
He thinks Amy Hood from Microsoft is conservative when she said that by 2026, Copilot will represent $10B to Microsoft’s bottom line. He believes that at least 50% of Microsoft E3 or E5 license customers will buy Copilot.

Senior Manager at Paypal shares his insights into the company and the industry at large
Paypal's stock price fall in 2021 caused a lot of attrition and friction.
According to the expert, one of the main problems Paypal had was that the pace of development wasn’t at the pace that leadership expected. The client feature list grew bigger and bigger, and the delivery was not that fast.
According to the expert Paypal lost market share faster than they thought they would, so they had to sit down with the main customers and see their needs.
While the expert expects Paypal to continue to lose market share, he still thinks they will grow. In his eyes, the biggest advantage of Paypal is brand and authentication, all reflected in safety.
Because of Paypal's data, delinquency rates are lower than their competitors. For Buy Now Pay Later, the rates for Paypal US were under 2%. The expert thinks the competitor's rates are more in the 3.5-4% range.
Apple Pay is a huge threat over the next 5-10 years as they are a strong, trusted brand.

Most impactful news of the week
Meta and IBM Launch AI Alliance
Meta Platforms and IBM have launched the AI Alliance, a coalition of over 50 artificial intelligence companies and research institutions. The alliance aims to support "open innovation and open science" in AI, with members largely favoring an open-source approach. Members of the alliance include Intel, Oracle, Cornell University, and the National Science Foundation. IBM and Meta have worked together since August to bring together organizations that share a commitment to open collaboration in AI.
Why Amazon and Nvidia Are Teaming Up in the Cloud
Amazon Web Services (AWS) has allowed Nvidia to operate a cloud service using AWS data centers. With this new service, DGX Cloud, Nvidia rents servers containing its graphics processing units from AWS and sells access to its customers. As part of the agreement, AWS will be the first cloud provider to bring Nvidia's latest graphics processing units, GH200s, to the cloud, utilizing Nvidia's networking gear to link the chips together. This move by AWS makes it the last major cloud provider to allow Nvidia to operate a cloud service in its data centers.
Elon Musk’s AI Startup Seeks to Raise $1 Billion
Elon Musk's artificial intelligence company, xAI, is reportedly looking to raise $1 billion, as indicated by a recent filing with the Securities and Exchange Commission (SEC). xAI, launched by Musk in July, aims to contribute to the collective understanding of the universe and is envisioned as a potential competitor to OpenAI. The SEC filing reveals that xAI has already raised nearly $135 million from four investors. Musk has expressed the need for an alternative AI option to tech giants like Google and Microsoft.
Nvidia’s CEO Still Plans to Sell High-End Chips in China
Nvidia CEO, Jensen Huang, has expressed the company's intention to continue supplying high-end processors to China despite recent warnings from the U.S. Commerce Secretary. Huang stated that Nvidia plans to work with the U.S. government to develop new products that comply with regulations. The company has faced scrutiny for redesigning its advanced chips for the Chinese market after the U.S. tightened restrictions on the sale of artificial-intelligence chips to China.
Nvidia Sees Huawei as Formidable AI Chipmaking Rival, CEO Says
Nvidia's CEO, Jensen Huang, acknowledges Huawei's position as a "very formidable" competitor in the race to produce advanced AI chips. He notes that Huawei, along with Intel and various semiconductor startups, presents a stiff challenge to Nvidia's dominant position in the AI accelerator market. This acknowledgment comes as Huawei continues to develop its chip technologies and plays a significant role in China's semiconductor industry.
OpenAI’s New Board Takes Over and Says Microsoft Will Have Observer Role
OpenAI's new board officially took control on Wednesday, introducing an observer role for partner Microsoft. The transition marks a significant development for the artificial intelligence (AI) startup, following the abrupt firing of CEO Sam Altman by the previous board. The new board, comprising Altman, Bret Taylor, and Mira Murati, has set priorities that include establishing an independent committee to review the events surrounding Altman's removal. The board is also focused on reassuring employees, customers, and investors about OpenAI's future. The changes signify a new phase for the company and come with the challenges of making crucial decisions.
Google Announces AI System Gemini After Turmoil at Rival OpenAI
Google has announced the development of a new artificial intelligence system called Gemini, which it claims is more powerful than any currently available on the market, including technology from OpenAI, the creator of ChatGPT. The algorithm is expected to be widely available in early 2024, after additional safety testing. The release of Gemini is seen as part of Google's efforts to showcase its AI capabilities, especially after the success of ChatGPT, which had a significant impact on the tech industry. The release will be a test of Google's AI prowess amid the ongoing developments in the AI community, including the situation at OpenAI.
AMD CEO Debuts Nvidia Chip Rival, Gives Eye-Popping Forecast
Advanced Micro Devices (AMD) has begun rolling out its latest chips for artificial intelligence (AI), posing a formidable challenge to Nvidia in the competitive AI semiconductor market. These chips are set to become widely available as server manufacturers integrate them into their systems, and cloud computing giants like Microsoft and Oracle offer access to them. AMD's move into AI chips reflects the growing importance of AI in computing, with CEO Lisa Su emphasizing its transformative impact on the industry, comparing it to the dawn of the internet.
Apple Aims to Make a Quarter of the World’s iPhones in India
Apple and its suppliers are working towards manufacturing over 50 million iPhones annually in India over the next two to three years, with the aim of increasing production even further in the subsequent years. If successful, India would account for a quarter of global iPhone production, marking a significant expansion in Apple's reliance on the country. The move aligns with Apple's efforts to diversify its supply chain and reduce dependence on China, facing challenges related to infrastructure and labor rules in India.
Amazon Dropping Venmo as a Payment Method
Amazon is removing Venmo as a payment option next month, according to information on Venmo's website. Customers were alerted to this change via email. While Amazon will no longer accept Venmo as a payment method, it will continue to accept Venmo-branded credit and debit cards. This move is seen as a setback to PayPal's efforts to expand Venmo's usage beyond peer-to-peer transactions between friends, as merchant transactions are an essential revenue source for the company.
Hidden gems
Meta Starts Fully Encrypting Messages on Facebook and Messenger App
Meta Platforms has announced that it has begun fully encrypting messages on Facebook by default, implementing a privacy measure that has raised concerns about potential risks associated with hiding illegal activities. The move involves automatically transitioning Facebook users to end-to-end encryption for their messages on the platform and the Messenger app. The encryption for direct messages on Instagram is expected to be implemented later, likely in the coming year. While end-to-end encryption enhances user privacy, critics argue that it may hinder law enforcement efforts to combat criminal activities on the platform.
EU Strikes Deal to Regulate ChatGPT, AI Tech in Landmark Act
The European Union has reached a significant deal on comprehensive regulations for artificial intelligence (AI), which is expected to be among the most comprehensive in the Western world. The EU's Artificial Intelligence Act aims to strike a balance between fostering innovation and safeguarding the rights of individuals and companies. The regulation aims to harness the potential of AI to support law enforcement while protecting citizens' fundamental rights and avoiding mass surveillance in Europe.
ByteDance Offers Investors a Buyback at $268 Billion Valuation
ByteDance, the parent company of TikTok, is reportedly offering to buy back up to $5 billion from investors at $160 per share, the same level offered to employees in November. This new buyback offer is at a valuation approximately 11% lower than the price ByteDance offered to investors in 2022. If successful, this move could make ByteDance one of the 40 most valuable public companies globally, ranking third in China behind Tencent and Kweichow Moutai.
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Source: the expert interviews are found on Alphasense, a platform specialized for expert interviews and other investment data.
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