🤝🧠 Apple x Meta AI Partnership??
Hi all,
Happy Sunday, the Summer Solstice was just this past Thursday! That means Summer has officially started and we are almost done with Q2.
In personal social-media news, we hit 1,300,000 subscribers on the YouTube channel today, and it took about 5 months to go from 1.2M to 1.3M subs. Growth has slowed down but viewership has gone up - which really goes to show you that subscribers don’t mean much on YouTube anymore.
It used to be the case where if you subscribed to a channel, you’d see their content — but these days even if you subscribe, if the creator’s content isn’t good enough for the algorithm it just won’t get shown. I’d still love to hit 2M subscribers on the channel one day, but at the current pace it would take us roughly 3 years! Still, hopefully this serves as a reminder to go check out your favorite creators on YouTube and keep up with their content - it sure means a lot to us!
In shorts news, I’ve been thinking about ways I can post five times a week on the short-form platforms - Instagram and Tik Tok, so be on the lookout for more content there… eventually.
I hope you’re having a fantastic weekend, let’s get after this week ahead!
— Humphrey, Tim, Rickie
Market Report
AI Is Already Wreaking Havoc on Global Power Systems
The rapid growth of AI is driving an unprecedented surge in demand for data centers and electricity worldwide.
This expansion is outpacing available power supplies in many regions, leading to extended wait times for grid access and raising concerns about potential outages and price increases for consumers.
Data centers are projected to consume 8% of total U.S. power by 2030, up from 3% in 2022, with global energy consumption by data centers expected to reach 1,580 TWh by 2034, equivalent to India's total electricity usage.
Major tech companies like Amazon, Microsoft, and Google are pledging to run their data centers on green energy, but the scale of demand is challenging these goals.
Some countries, including Saudi Arabia, Ireland, and Malaysia, are planning data center capacities that could exceed their available renewable energy supply.
This rapid growth is transforming landscapes, straining power grids, and potentially jeopardizing carbon reduction targets.
Apple and Meta Have Discussed an AI Partnership
Apple has been in discussions with Meta Platforms about potentially integrating Meta's generative AI model into Apple Intelligence, the newly announced AI system for Apple devices.
This potential collaboration is part of Apple's broader strategy to partner with various AI companies, including OpenAI, Google, Anthropic, and Perplexity, to offer users a range of AI options.
The talks with Meta are notable given the companies' history of rivalry, particularly over privacy issues.
While no financial exchanges are involved in these potential partnerships, AI companies could offer premium subscriptions through Apple Intelligence, with Apple taking a cut of the subscription revenue.
US Moves Closer to Restricting Outbound Investment in China for Chips, AI Tech
The Biden administration has advanced plans to restrict investments by US individuals and companies into China, focusing on semiconductors, quantum computing, and artificial intelligence to curb Beijing's military and surveillance capabilities.
These restrictions, part of a broader strategy to slow China's technological advancements, will apply to various types of investments, including equity acquisitions, debt financing, and joint ventures.
The administration emphasizes that the measures are narrowly focused to protect national security without harming China's economy, and US allies may adopt similar steps.
Hackers Want Millions in Ransom to End Car Dealership Outage
A group claiming responsibility for hacking CDK Global, a major software provider for North American car dealerships, is demanding tens of millions of dollars in ransom.
CDK is reportedly considering paying the ransom, though discussions are ongoing. The hackers are believed to be based in Eastern Europe.
The cyberattack, which began on June 19, has caused significant disruptions to approximately 15,000 car dealerships that rely on CDK's dealership management system (DMS) for their daily operations.
CDK has warned that systems may remain unavailable for several days as they work to restore functionality, while also cautioning customers about potential fraudulent attempts by malicious actors posing as CDK affiliates.
Forecast Ahead
The Federal Reserve's preferred inflation measures, released this Friday, are expected to show the smallest monthly increases since late last year, potentially paving the way for interest rate cuts as early as September.
Economists predict no change in the May personal consumption expenditures price index and a slight 0.1% rise in the core PCE, which excludes food and energy.
The annual increase for both measures is projected to be 2.6%, the smallest since March 2021.