Five Top Tech Takeaways: SBF Gets Locked Up, Coinbase's Canadian Foray, AI Startups vie with Giants, LK-99 Update, and a Mind-Reading Breakthrough

AI Startups In the Land of Giants

Judge Revokes Bankman-Fried's Bail; Over Witness Tampering Allegations

Sam Bankman-Fried, the founder of FTX, was taken into custody after a judge agreed with federal prosecutors to revoke his bail due to alleged witness tampering. The decision came after a court hearing in New York, and Bankman-Fried was sent to Brooklyn’s Metropolitan Detention Center. Judge Lewis Kaplan rejected Bankman-Fried's plea for delayed detention pending an appeal. The judge believed there was probable cause that Bankman-Fried attempted to tamper with witnesses. Since his arrest in December, he had been on a $250 million bail and was required to stay at his parents' home in Palo Alto, California. The Justice Department accuses him of a "pattern of witness tampering and evading his bail conditions" through his interactions with the media. The defense argued that Bankman-Fried was exercising his first amendment rights. The prosecution's case was strengthened when Bankman-Fried leaked private diary entries of his ex-girlfriend, Caroline Ellison, to the New York Times. Ellison, a former executive of Bankman-Fried’s crypto hedge fund, Alameda Research, had pleaded guilty to federal charges and is cooperating with the government. The prosecution views Bankman-Fried's actions as an attempt to intimidate witnesses indirectly through the media. (Source: CNBC)

Coinbase Embraces Canadian Regulations, Integrates Interac e-transfer

Coinbase is expanding its Canadian operations, integrating Interac e-transfer to simplify transactions in the region and strengthening its presence with over 200 engineers. While other platforms like Binance are retreating from Canada due to tightening regulations by the Canadian Securities Administrators (CSA), Coinbase has embraced these changes, signalling its commitment to the country. The company has complied with the CSA's new rules and has found a positive working relationship with Canadian regulators. Coinbase's CEO Brian Armstrong sees regulatory clarity as a foundation for further growth in the fintech field and remains optimistic about the future of cryptocurrencies globally, even as the firm faces legal challenges in the U.S. (Source: Globe and Mail)

Mind-Reading Breakthrough: UC Berkeley Researchers Vocalize Thoughts.

Researchers at the University of California, Berkeley have made significant progress in the development of devices that can vocalize human thoughts. This advancement could potentially aid patients who have lost their speech abilities due to strokes or brain injuries, allowing them to communicate in a more natural manner. In a notable experiment, the neuroscientists reconstructed Pink Floyd’s song "Another Brick in the Wall, Part 1" using brain activity recordings from 29 patients who listened to the song during brain surgery. While the reconstructed version was not as refined as the original, it was identifiable. The study, which was published in PLOS Biology, demonstrates the potential of using brain-activity patterns to develop therapeutic technologies. Dr. Edward Chang, a neurosurgeon not involved in the study, highlighted the significance of the findings. The research aims to utilize this technology to create neural prosthetics that can restore natural speech abilities to patients. The algorithms developed were even able to reproduce partial vocals from the song. The choice of the Pink Floyd song was due to its balance of familiarity. The breakthrough raises questions about mental privacy, as the ability to interpret thoughts could be the next frontier in privacy concerns. (Source: WSJ)

The Quest for a Room-Temperature Superconductor Continues

The LK-99, initially believed to be a room-temperature superconductor, appears to have different properties than initially thought. Recent studies suggest that in its pure form, LK-99 behaves more like an insulator. This discovery came after the Quantum Energy Research Centre in Seoul, South Korea, shared their initial findings with great enthusiasm. The team had observed certain characteristics in LK-99 that resembled those of superconductors, such as partial levitation above a magnet and a notable drop in electrical resistance. While the initial findings were shared on a preprint server, which allows for rapid dissemination of research without peer review, it's evident that the team was genuinely excited about their discovery, even if subsequent studies have provided a different perspective. (Source: TechCrunch)

Big Tech's Dominance in AI Policy Discussions: Where Do Startups Stand?

In the rapidly evolving realm of generative AI, major players like Microsoft and OpenAI often dominate the conversation, especially when it comes to regulatory discussions. These industry giants have been at the forefront, engaging with policymakers and even entering agreements with the White House to promote responsible AI. However, there's growing concern that smaller AI entities, both commercial and non-commercial, are being overshadowed in these crucial discussions. While these larger companies are instrumental in shaping potential AI policies, smaller businesses, which also play a significant role in the AI ecosystem, are anxious about their limited influence on the outcomes of these regulations. Experts emphasize the importance of including a diverse range of stakeholders in the regulatory dialogue to ensure a balanced and inclusive approach to AI governance. (Source: TheVerge)

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.

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