- The Weekly Buzz š by Blossom
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- š± OpenAI working on "The iPhone of AI"
š± OpenAI working on "The iPhone of AI"
Plus, Apple makes more money on Bing than Bing does?
āļø Happy Sunday
In todayās Weekly Buzz, weāll look at Microsoftās 2020 attempt to sell Bing to Apple, Open AIās talks to build the āiPhone of AIā, and Metaās product announcements at Meta Connect.
š¤ Thank you all for being part of the Blossom community and a warm welcome to the newbies!
Letās get into it,
Max, CEO of Blossom
TOP STORY
š Google Lawsuit Uncovers Microsoftās Attempt to Sell Bing
This week we found out that in 2020 Microsoft tried to sell Bing to Apple, but talks never really progressed beyond the exploratory phase.
The news came out amid an antitrust trial with Google about the companyās search market dominance. At the center of the dispute are Googleās exclusive deals with phone makers and browsers to make Google the default search engine ā stifling smaller rivals like DuckDuckGo.
A Microsoft executive revealed that Apple only viewed Microsoft as a "bargaining chip" to negotiate better deals with Google.
āIt is no secret that Apple is making more money on Bing existing than Bing does.ā
š Recapping the timeline of Apple and Googleās relationship:
In 2002, Apple and Google made a deal to share the net earnings from Google searches on Apple devices.
In 2009, Microsoft introduced a search engine called Bing.
In 2014, Google paid Apple $1 billion to keep Google as the default search engine on iOS devices.
In 2016, the companies added a "joint defense" clause, which required both companies to stand together in defense if either company faced government lawsuits.
In 2020, Apple engaged in talks with Microsoft to buy Bing.
In 2020, the government filed a lawsuit against Google, highlighting Googleās search engine dominance.
In 2023, Google's payment to Apple could reach as high as $19 billion (according to Bernstein estimates).
š In other news, other lawsuits are happening in the tech world, as the U.S. government is suing e-commerce marketplaces Amazon and eBay.
š Google stock is up +0.83% this week, Apple is down -1.76%, and Microsoft is down -0.36%.
FROM OUR FRIENDS @ HARVEST ETFS
š Healthcare - Scale and Defense that Canadians Often Miss
The US Healthcare sector is massive. The market capitalization of the 20 large-cap Healthcare companies in the Harvest Healthcare Leaders Income ETF (HHL:TSX) is multiple times larger than the entire TSX.
Many investors like the Healthcare sector because it combines consistent non-cyclical growth drivers with large-cap companies and consistent innovation. Healthcare is widely considered a āsuperior goodā meaning consumers are less likely to cut their healthcare expenses if a recession hits. Moreover, healthcare companies innovate constantly, delivering new drugs and patented medical technologies that can deliver value for shareholders.
Watch this video with Harvest ETFs Chief Investment Officer Paul MacDonald explaining the opportunities in weight loss drugs for investors.
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For the latest updates on the Healthcare sector, sign up for Harvest ETFs' monthly newsletter.
ARTIFICIAL INTELLIGENCE
š± OpenAI and Ex-Apple Designer Plan to Launch the āiPhone of AIā
Ex-Apple Designer Jony Ive (Left), and OpenAI Ceo Sam Altman (Right)
OpenAI's Sam Altman, former Apple designer Jony Ive, and SoftBank's Masayoshi Son are in talks to launch a $1 billion venture aimed at creating a consumer device dubbed "the iPhone of artificial intelligence."
While plans are in the early stages, the goal is to develop a more intuitive user experience for interacting with AI. They expect to make an official announcement in a few months but anticipate the device's launch to be years away.
š” Microsoft owns 49% of OpenAI, investing ~$10 billion in January 2023.
This marked their third financial commitment, following initial investments in 2019 and 2021.
OpenAI is also in discussions with investors regarding a potential share sale that could value the company between $80-$90 billion. The sale would enable OpenAI to secure additional funding, which would be pivotal in advancing its AI projects, like their product announcements this week:
Spotify and OpenAI partner on AI voice translation for podcasts.
OpenAIās āChatGPTā can now access the internet and is no longer limited to information before September 2021.
OpenAIās āChatGPTā can now see, hear, and talk to you ā you can upload images and send voice messages.
š Another big tech company, Amazon, recently announced plans to invest up to $4B into AI company, Anthropic.
A HELPFUL REMINDER
š¦¹ Watch out for Quantum AI Scammers!
Itās probably no surprise that I check Blossomās ranking on the App Store every day, and in my daily peruse, I often scroll through to see if there are any cool new apps in the rankings.
Well to my surprise the app āQuantum AIā kept coming up. Not once, but multiple times in the top 200 Finance apps. Different versions of the app currently sit at rank #27, #34, #91, and #193.
I downloaded this app to check it out and discovered it is an obvious scam that promises 3600% yearly returns and attempts to get unsuspecting beginners on a ā1-1 callā.
Watch me call out the scammer on my 1-1 call and stay safe out there!
VIRTUAL REALITY
š¶ļø Meta Announces New Ray-Ban Glasses, AI Chatbots, and More
On Wednesday, Meta unveiled a slew of AI products at the company's biggest annual event, Meta Connect. Meta CEO, Mark Zuckerberg, announced the release of the latest Quest 3 headset, Ray-Ban smart glasses, and a conversational assistant, Meta AI.
Meta AI will be available on WhatsApp, Messenger, Instagram, the Meta Quest 3, and the Ray-Ban smart glasses when they are released.
Meta AI can provide real-time information and generate photorealistic images from text prompts within seconds.Meta also announced the next generation of Ray-Ban smart glasses, which will be priced at $299 USD and set to ship on October 17.
These glasses are designed to integrate Meta's new AI assistant and feature the ability to live-stream a user's perspective directly to platforms like Facebook and Instagram.
Meta also ventured deeper into the AI space with the release of their large language AI model, āLLaMA 2ā ā an open-source model for research and commercial use.
This move followed the launch of OpenAI's āChatGPTā, as Meta fights to catch up with competitors by offering LLaMA 2 for free. The AI community celebrated this open-source approach.
š Meta ($META) stock was up 1.56% this week.
FROM THE BLOSSOM COMMUNITY
š Top Discussions This Week
Amiya Sparks (@amiya_sparks)
Fraser McGuire (@frasermcguire)
Brayden Russell (@brayden)
šļø What else you mightāve missed:
Aritzia ($ATZ) was up ~6% after reporting an increase in quarterly revenue and seeing an improved inventory position.
Nike ($NKE) was up ~7% despite missing quarterly revenue estimates.
Disney ($DIS) announced a crackdown on password sharing for Disney+ accounts in Canada.
Costco ($COST) hit a new 52-week high and is selling 1-ounce gold bars on its website.
Peleton ($PTON) and Lululemon ($LULU) have entered a 5-year partnership.
Google ($GOOG) announces it will be shutting down its podcasts app in 2024.