Five Top Tech Takeaways: Netflix's Sea of Cash, Superconductivity breakthrough, Farmers Gets Emojied, and Tech Bets Big on AI

Netflix's Sea of Cash

Superconductor Claims Ignite Market Buzz Despite Scientific Skepticism

Claims about a breakthrough in superconductor technology that could revolutionize the power, transportation, and chip industries have sparked surges in some Korean and Chinese stocks, despite skepticism from scientists. The excitement began after a report from South Korean researchers stated they had synthesized the world's first superconductor able to conduct electricity at room temperature and ambient pressure. The superconductor, named LK-99, could be disruptive for a wide range of industries if it can be mass-produced. However, commercialization seems difficult as LK-99 appears to have insufficient ductility to be made into wires. (Source: BNN Bloomberg)

Tech Giants Google and Microsoft Bet Big on AI

Artificial intelligence (AI) is one of the most important and competitive fields in the tech industry, and two of the biggest players are Microsoft and Google. According to a recent report by CSET, a research center at Georgetown University, Microsoft and Google spent an estimated $19.6 billion and $27.6 billion on AI research and development in 2020, respectively. These figures are based on analyzing the companies' financial statements, patents, publications, and other indicators of AI activity. The report also compares the AI spending of Microsoft and Google with other tech giants, such as Amazon, Facebook, Apple, and IBM, as well as the US government. The report reveals that Microsoft and Google are leading the pack in terms of AI investment, innovation, and talent acquisition and that they are likely to maintain their dominance in the near future. You can read the full report here. (Source: The Wall Street Journal)

Canadian Farmer Ordered to Pay for Contract Confirmed by Emoji

A Canadian judge has ruled that a "thumbs-up" emoji can be as valid as a signature in a contract, ordering a farmer to pay CAD 82,000 ($61,442) for an unfulfilled contract. The case revolved around a grain buyer who sent a contract to the farmer via text message, asking for confirmation. The farmer responded with a thumbs-up emoji but did not deliver the agreed-upon flax. The judge argued that courts need to adapt to the "new reality" of how people communicate, dismissing concerns that this ruling could lead to new interpretations of other emojis. (Source: The Guardian)

Hollywood Writer's Strike Helps Netflix Pool $5 Billion in Cash

In the midst of Hollywood writers and actors' strikes, Netflix has experienced an unexpected financial windfall. The streaming giant anticipates a free cash flow of at least $5 billion for 2023, a significant leap from the previously estimated $3.5 billion, due to reduced operational costs from delayed production schedules. The company plans to send the cash to shareholders through stock-buybacks.  CFO Adam Neumann attributes this financial boost to the strikes and the company's successful crackdown on password sharing, which has led to an addition of over 6 million new paid subscribers in Q2, including 1.2 million in the U.S. and Canada. The company reported a profit of $1.8 billion on $8.2 billion in revenue for Q2. This situation presents a unique opportunity for Netflix to capitalize on the current labor disputes, demonstrating resilience and adaptability in a challenging market environment. (Source: CBS)

Free Generative AI Coursework for Professionals

Microsoft and LinkedIn have launched the AI Skills Initiative certificate program, a free coursework library for professionals seeking to learn and apply generative AI skills. The initiative, which leans towards Microsoft's Bing Chat built on OpenAI's GPT-4, consists of five modules, each with a video and some including quizzes or workbooks. Completion of all modules earns the learner a Professional Certificate on Generative AI, which can be displayed on LinkedIn Learning. The certificate program will be available in seven languages and free through 2025. Microsoft is also offering a grant for exceptional proposals on training employees of nonprofit, social enterprise, and research or academic institutions to use generative AI, with proposals due by August 15. Generative AI skills are among the top three training priorities for companies, with over 75% planning to adopt AI in the next five years.  (Source: TechRepublic)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own