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Tech's longtime highfliers are growing up by getting smaller
  + stars: | 2024-02-02 | by ( Ari Levy | ) www.cnbc.com   time to read: +7 min
They're still out hunting for the best technical talent, particularly in areas like artificial intelligence, but headcount growth is measured. Last year, tech companies were responding to dramatically changing market conditions — soaring inflation, rising interest rates, rotation out of risk — after an extended bull market. Meta slashed over 20,000 jobs in 2023, Amazon laid off more than 27,000 people, And Alphabet cut over 12,000 positions. Other than Nvidia , which had a banner 2023 due to soaring demand for its AI chips, none of the other mega-cap tech companies have been growing at their historic averages. By late this year, analysts are projecting growth at Meta will be back down to the low teens at best.
Persons: Tayfun, There's, Daniel Flax, Neuberger Berman, CNBC's, Morgan Stanley, Brian Nowak, Brian Olsavsky, They're, Mark Zuckerberg, Zuckerberg, Olsavsky, Phil Spencer, Justin Sullivan, Okta, Zuora, Evan Sohn, Recruiter.com, " Sohn, Susan Li, Ben Barringer, Cheviot, Barringer, , Annie Palmer Organizations: Anadolu Agency, Getty Images Technology, Amazon, Meta, hasn't, Microsoft, Activision Blizzard, SAN FRANCISCO, Activision, FTC, Getty, Federal, Labor Department's Bureau of Labor Statistics, Tech, Nvidia, Finance, CNBC Locations: Menlo Park , California, Silicon Valley, CALIFORNIA, San Francisco , California
One theme investors heard repeatedly from top execs is that, when it comes to AI, they have to spend money to make money. Last year marked the beginning of the generative AI boom, as companies raced to embed increasingly sophisticated chatbots and assistants across key products. One key priority area, based on the latest earnings calls, is AI models-as-a-service, or large AI models that clients can use and customize according to their needs. Alphabet executives highlighted Vertex AI, a Google product that offers more than 130 generative AI models for use by developers and enterprise clients such as Samsung and Shutterstock. Alphabet executives touted Google's Duet AI, or "packaged AI agents" for Google Workspace and Google Cloud, designed to boost productivity and complete simple tasks.
Persons: Sundar Pichai, Mandel Ngan, Satya Nadella, Mark Zuckerberg, Josh Edelson, Zuckerberg, Nadella, Amy Hood, Pichai, You've, durably, Ruth Porat, Andy Jassy, Jassy, Tim Cook, Cook, Thos Robinson, Microsoft's, Rufus, Bard Organizations: Artificial Intelligence, AFP, Getty, Microsoft, Apple, Nvidia, Meta, Google, Amazon, New York Times, Samsung, GE, Spotify, Pfizer Locations: Washington ,, Menlo Park , California, LLMs, New York City
Meta founder and CEO Mark Zuckerberg speaks during Meta Connect event at Meta headquarters in Menlo Park, California on September 27, 2023. Josh Edelson | AFP | Getty ImagesShares of Facebook parent company Meta jumped Friday, after the firm reported a threefold jump in fourth-quarter profit and issued its first-ever dividend. First-ever dividendMeta said it would pay investors a dividend of 50 cents a share on March 26, in the company's first-ever cash dividend. Meta also announced a $50 billion share buyback. Ben Barringer, technology analyst at Quilter Cheviot, said this represented a "symbolic moment and indicates what a turnaround story Meta has been on since its struggles in 2022."
Persons: Mark Zuckerberg, Josh Edelson, Meta, Ben Barringer, Cheviot, Barringer Organizations: Meta, AFP, Getty, Facebook, Revenue, Investors, Microsoft Locations: Menlo Park , California, U.S
That's up from $4.65 billion, or $1.76 per share, a year earlier. Revenue grew 25% to $40.11 billion from $32.17 billion. Analysts, on average, were expecting earnings of $4.82 per share on revenue $39.1 billion, according to FactSet Research. For the current quarter, Meta is forecasting revenue of of $34.5 billion to $37 billion, above Wall Street's expectations. Analysts are projecting revenue of $33.9 billion for the first quarter.
Persons: Mark Zuckerberg, ” Meta, Zuckerberg Organizations: Inc, Menlo, Revenue, Research, Locations: , California
Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on Sept. 27, 2023. Mark Zuckerberg is so pleased with his "year of efficiency" that he's extending it indefinitely. On Thursday's earnings call, after Meta reported fourth-quarter financials that sailed past analysts' estimates, Zuckerberg said he wants to "keep things lean" and has no plans to accelerate hiring. At the time, Meta was facing a tough digital ad market and the lingering effects of Apple's 2021 iOS update. On Thursday, Meta reported fourth-quarter sales growth of 25%, the fastest rate of expansion since mid-2021, to $40.1 billion.
Persons: Mark Zuckerberg, Zuckerberg, Meta Organizations: Meta, Nvidia Locations: Menlo Park , California
Generative AI, as expected, was a big focus of the earnings call. He also noted the company's advanced virtual assistant, Meta AI, was made fully available in the U.S. by the end of 2023, and the firm is testing more than a dozen other generative AI features. But investors across the tech industry are increasingly wondering when all the spending on generative AI will translate to revenue – and that's no different for Meta. Nevertheless, Li said Meta's suite of generative AI tools for advertisers is its biggest near-term monetization opportunity. Further down the road, Li indicated that business messaging is another compelling opportunity to make money from generative AI.
Persons: Mark Zuckerberg's, Meta, Zuckerberg, Susan Li, Mark Zuckerberg, Li, EssilorLuxottica, Jim Cramer, Ray, Meta's, it's, Jim Cramer's, Jim, Justin Sullivan Organizations: Revenue, LSEG, Meta, Reality Labs, Daily, Facebook, Management, Quest, VR, Apple, Vision, UBS, Pro, CNBC Locations: , Instagram, U.S, Menlo Park , California
Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on Sept. 27, 2023. Meta announced on Thursday that it will pay a quarterly dividend for the first time, and that it had authorized an expanded $50 billion share buyback program. The Facebook owner will pay a 50 cent per share dividend, joining peers Apple , Microsoft and Oracle , all of which pay regular dividends. Shares rose more than 12% on the earnings report and the news of the buyback and dividend. The expanded share buyback authorization comes just two weeks after Meta shares eclipsed their 2021 high, breaking through $378.
Persons: Mark Zuckerberg, Meta Organizations: Meta, Facebook, Apple, Microsoft, Oracle Locations: Menlo Park , California
"The cultural narrative that cutting back on screen time, just as a blanket rule, is always better for kids is more destructive than helpful," Christensen, a psychologist and researcher at Menlo Park, California-based nonprofit SRI International, tells CNBC Make It. But watching high-quality, educational content is good for your kids' development — teaching them important skills and emotional intelligence that can eventually help them develop into successful adults. What is 'good' screen time? Educational content tops Christensen's list of high-quality content, she says: "We're looking for videos that are intended to teach." How parents can reframe their approach to kids' screen time
Persons: Claire Christensen, Christensen, Dora, it's Organizations: Menlo, SRI International, CNBC, SRI Locations: Menlo Park , California
Dario Amodei, Daniela Amodei, Tom Brown, Jack Clark, Jared Kaplan, and Sam McCandlish, cofounders of AnthropicAnthropic's Dario Amodei, Jack Clark, and Daniela Amodei. Since then, the company has received billions in funding from both Google and Amazon in what some have termed an "AI arms race." CEO Dario Amodei, a former Google Brain researcher with a Ph.D. in computational neuroscience, has been writing about the cataclysmic potential of AI since 2016. Constitutional AI is partly the brainchild of two other OpenAI alums and Anthropic cofounders, Tom Brown and Jared Kaplan. Both Kaplan and Brown have worked on Anthropic's efforts to "red team" the company's flagship language model, Claude, probing for misuse possibilities.
Persons: Dario Amodei, Daniela Amodei, Tom Brown, Jack Clark, Jared Kaplan, Sam McCandlish, Anthropic Anthropic's Dario Amodei, Menlo Ventures Anthropic, Amodei's, Anthropic, , Anthropic cofounders, Brown, Kaplan, Johns Hopkins, Claude, AGI, I'm Organizations: Google, Menlo Ventures, Bloomberg, Johns, OpenAI Locations: OpenAI, GPT
Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on Sept. 27, 2023. The share rose almost 2% on Friday to close at $383.45, setting a new record. Zuckerberg pitched 2023 as a "year of efficiency" following a disastrous 2022, when the stock plunged 64% to its lowest since 2016. However, Meta's market cap is still below its record, because the company has been buying back tens of billions of dollars in stock, reducing the number of shares outstanding. Watch: The AI dark horse: Why Apple could win the next evolution of the AI arms race
Persons: Mark Zuckerberg, Mark Zuckerberg's, Zuckerberg, Meta Organizations: Meta, Apple Locations: Menlo Park , California
"Child safety is an explicit non-goal this half." That same year, Meta executives scrambled to respond to a complaint from an executive at Apple, whose 12-year-old child was solicited on Facebook, according to the newly unredacted filing. "This is the kind of thing that pisses Apple off to the extent of threatening to remove us from the App store," a Meta employee told his colleagues. A Meta spokesperson said the company has fixed many of the problems identified in the complaint. In one month alone, the company said, it disabled more than a half million accounts for violating child safety policies.
Persons: We've, Instagram, Mark Zuckerberg Organizations: Facebook, Menlo Park , California ., Meta, Apple Locations: Menlo Park , California, Menlo Park , California . WASHINGTON, New Mexico
Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on Sept. 27, 2023. Meta is spending billions of dollars on Nvidia's popular computer chips, which are at the heart of artificial intelligence research and projects. In December, tech companies like Meta, OpenAI and Microsoft said they would use the new Instinct MI300X AI computer chips from AMD. Meta is currently training Llama 3 and is also making its Fundamental AI Research team (FAIR) and GenAI research team work more closely together, Zuckerberg said. Shortly after Zuckerberg's post, LeCun said in a post on X, that "To accelerate progress, FAIR is now a sister organization of GenAI, the AI product division."
Persons: Mark Zuckerberg, Zuckerberg, Raymond James, Meta, Yann LeCun, LeCun, Jensen Huang, Zuckerberg's, Kif Leswing Organizations: Meta, Nvidia, Zuckerberg, eBay, Microsoft, AMD, AI Research, FAIR, Apple Locations: Menlo Park , California, San Francisco
SAN FRANCISCO (AP) — Newly unredacted documents from New Mexico's lawsuit against Meta underscore the company's “historical reluctance” to keep children safe on its platforms, the complaint says. Child safety is an explicit non-goal this half” (likely meaning half-year), according to the lawsuit. A March 2021 child safety presentation noted that Meta is “underinvested in minor sexualization on (Instagram), notable on sexualized comments on content posted by minors. Last week, the company announced it will start hiding inappropriate content from teenagers’ accounts on Instagram and Facebook, including posts about suicide, self-harm and eating disorders. Meta CEO Mark Zuckerberg, along with the CEOs of Snap, Discord, TikTok and X, formerly Twitter, are scheduled to testify before the U.S. Senate on child safety at the end of January.
Persons: Raúl Torrez, Meta, Meta “, , Instagram, ” Instagram, Arturo Béjar, , it’s, Mark Zuckerberg Organizations: FRANCISCO, Meta, Facebook, Apple, , National Center for, U.S . Senate Locations: New, , Instagram, Menlo Park , California
But these shades are not mixed on a palette, they are unfiltered snapshots of San Francisco Bay’s salt ponds. Barbara BoissevainAlthough perhaps less photogenic, the shift is a positive sign, says Dave Halsing, executive project manager of the South Bay Salt Ponds Restoration Project. Today, Cargill still operates 12,000 acres of salt ponds, capable of crystallizing half a million tons of sea salt each year. She remembers visiting the salt ponds for the first time during a science class in third grade. She started by going up in the air once a year to photograph the salt ponds.
Persons: CNN — Barbara Boissevain’s, Mark Rothko, Dunaliella, Barbara Boissevain, Dave Halsing, , Boissevain, , David Maisel Organizations: CNN, Cargill, Menlo Park, Meta, Facebook, Kehrer Verlag, San Jose State University Locations: Francisco, Salt, Manhattan, Dunaliella salina, Silicon, Menlo, Ravenswood Ponds
Meta's top AI scientist urged Mark Zuckerberg to make a ChatGPT rival, the New York Times reports. Yann LeCun warned that Facebook and Instagram could potentially go extinct if Meta didn't act. If Meta didn't buckle down on its AI efforts, Facebook and Instagram could go extinct, LeCun warned, according to the report. "I have been thinking about what you said," the CEO told LeCun during a dinner that evening, a person familiar told the Times. Meta didn't immediately reply to Business Insider's request for comment from Zuckerberg or LeCun.
Persons: Mark Zuckerberg, Yann LeCun, Meta, , OpenAI, Zuckerberg, Instagram, LeCun, Meta didn't, Josh Hawley of, Richard Blumenthal, Meta wasn't, OpenAI —, didn't, Paris Hilton, Snoop Dogg Organizations: New York Times, Facebook, Meta, Service, Times, 4chan, Tech, Google, Microsoft, Paris Locations: Menlo Park , California, Josh Hawley of Missouri, Connecticut
The network of nearly 4,800 fake accounts was attempting to build an audience when it was identified and eliminated by the tech company, which owns Facebook and Instagram. The accounts sported fake photos, names and locations as a way to appear like everyday American Facebook users weighing in on political issues. Meta often points to its efforts to shut down fake social media networks as evidence of its commitment to protecting election integrity and democracy. But critics say the platform's focus on fake accounts distracts from its failure to address its responsibility for the misinformation already on its site that has contributed to polarization and distrust. But 2024 poses new challenges, according to experts who study the link between social media and disinformation.
Persons: Meta, Ben Nimmo, Donald Trump, Trump, Democrat Joe Biden, Biden, Zamaan Qureshi, , Jennifer Stromer, Elon Musk, Kyle Morse, Nimmo, Meta's Organizations: WASHINGTON, Inc, Meta, Democrat, Real Facebook, Syracuse University, Twitter, Republicans, Tech, Ukraine Locations: China, U.S, India, Mexico, Ukraine, Pakistan, Taiwan, Menlo Park , California, Tibet, Iran, Russia
In a lawsuit filed late Wednesday in federal court in Washington, D.C., Meta Platforms Inc. said it is challenging “the structurally unconstitutional authority exercised by the FTC” in reopening the privacy agreement. “Meta respectfully requests that this Court declare that certain fundamental aspects of the Commission’s structure violate the U.S. Constitution, and that these violations render unlawful the FTC Proceeding against Meta,” the company says in its complaint. The dispute stems from a 2020 consent agreement Meta made with the FTC that also had the social media giant pay a record $5 billion fine over privacy violations. In May of this year, the FTC said Meta has failed to fully comply with the 2020 settlement and proposed sweeping changes to the agreement that includes barring Meta from making money from data it collects on minors. Political Cartoons View All 1274 ImagesThe FTC had no comment on the lawsuit.
Persons: “ Meta, Meta, Sen, Edward Markey, , ” Markey Organizations: Facebook, Federal Trade Commission, Washington , D.C, Inc, FTC, Constitution, Meta, U.S, Securities and Exchange Commission, SEC, Big Tech, Massachusetts Democrat Locations: Calif, Washington ,, U.S, U.S ., Massachusetts
OpenAI shakeup drama: What you need to know
  + stars: | 2023-11-21 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOpenAI shakeup drama: What you need to knowSteve Sloane, partner at Menlo Ventures, and CNBC's Steve Kovach join 'The Exchange' to discuss whether Sam Altman will go to Microsoft or OpenAI, Anthropic's relationship with OpenAI, and more.
Persons: Steve Sloane, Steve Kovach, Sam Altman, OpenAI Organizations: Menlo Ventures, Microsoft
Meta’s China quest thaws thin layer of dense cube
  + stars: | 2023-11-10 | by ( Anita Ramaswamy | ) www.reuters.com   time to read: +4 min
In August, the United States banned domestic companies from making some new investments in Chinese tech, including computer chips and artificial intelligence systems. Chinese-based ByteDance, the owner of TikTok, counts the United States as its largest market. Selling virtual reality hardware primarily used for gaming is also an easier way of entering China. CONTEXT NEWSMeta Platforms struck a preliminary deal to sell virtual reality headsets in China through an exclusive partnership with Tencent, the Wall Street Journal reported on Nov. 9. China banned Meta’s Facebook platform from the country in 2009 and subsequently banned its WhatsApp and Instagram services as well.
Persons: Carlos Barria, Susan Li, Joe Biden, China’s Xi, Biden, Meta’s, Meta, ByteDance’s, Apple’s, Lauren Silva Laughlin, Sharon Lam Organizations: Meta, REUTERS, Reuters, HK, Wall Street, Facebook, United, Huawei, Companies, Republican, Tencent, Google, New York Times, Thomson Locations: Menlo Park , California, U.S, China, Beijing, Washington, United States, San Francisco, Texas, Florida, Montana
This as-told-to essay is based on a conversation with Glaze Martillano, a tech recruiter at Meta who lives in Toronto, about the benefits Meta employees are offered. VacationsWhen joining a big tech company, most candidates have high expectations when it comes to healthcare, competitive equity packages, vacations, and bonuses. Most importantly, they get to work on different projects with Meta employees based on their personal interests and skills. Companies talk about the importance of mental-health care, but there's still a stigma attached to getting help, so employees often don't take advantage of it. Forty percent of employers say they believe workers leave their jobs to work at companies that offer better benefits and perks.
Persons: Glaze, Martillano, , It's, Meta, I've, we've, We've, it's, they'd, there's Organizations: Meta, Talent, Service, Facebook, Tech Locations: Toronto, Canada, United States, Menlo Park , California
"For the first time, customers will be able to shop Amazon's Facebook and Instagram ads and check out with Amazon without leaving the social media apps," an Amazon spokesperson said in a statement. Amazon said last month that sales in its online ad business grew 26% from a year earlier in the third quarter to $12.06 billion. By partnering with Amazon, Meta can make it easier to allow shops to sell goods on Facebook and Instagram without creating custom storefronts on those apps. Meta provided some details about the new feature on Tuesday on a support page titled "Purchase with Amazon without leaving Facebook or Instagram." "You can check out with Amazon without leaving Facebook or Instagram, and experience more relevant ads."
Persons: Mark Zuckerberg, that's, Stuart McMullin, Maurice Rahmey, Rahmey, , Annie Palmer Organizations: Meta, Facebook, Amazon, LinkedIn, CNBC Locations: Menlo Park , California, U.S, Pinterest
Political Cartoons View All 1237 ImagesEarlier this year, the Federal Election Commission began a process to potentially regulate AI-generated deepfakes in political ads before the 2024 election. AI-generated political ads have already made an appearance in the U.S. In April, the Republican National Committee released an entirely AI-generated ad meant to show the future of the United States if Biden, a Democrat, is reelected. Google announced a similar AI labeling policy for political ads in September. Under that rule, political ads that play on YouTube or other Google platforms will have to disclose the use of AI-altered voices or imagery.
Persons: , Joe Biden's, Biden, Ron DeSantis ’, Donald Trump, Anthony Fauci, “ It’s, , Vince Lynch, IV.AI, Lynch, ” Lynch Organizations: WASHINGTON, Facebook, Meta, Inc, Commission, Republican National Committee, Democrat, Florida Gov, GOP, Google, YouTube Locations: Europe, United States, U.S, Mexico, South Africa, Ukraine, Taiwan, Pakistan, Florida, Menlo Park , California
LOS ANGELES (AP) — Mark Zuckerberg's latest martial arts sparring session sent him to the operating table. The Meta Platforms CEO and mixed martial arts enthusiast posted on social media Friday that he tore one of his anterior cruciate ligaments, or ACLs, while training for a fight early next year. “Tore my ACL sparring and just got out of surgery to replace it,” Zuckerberg posted on Instagram. Political Cartoons View All 1234 ImagesZuckerberg, who in May completed his first jiu jitsu tournament, has previously posted updates on his martial arts training. But in August, the Tesla CEO posted on social media that he might need surgery before the fight could happen.
Persons: Mark Zuckerberg's, “ Tore, ” Zuckerberg, Zuckerberg, Elon Musk, Musk, Elon, Organizations: ANGELES, , Facebook Locations: Park , California
Author and executive coach Carole Robin, speaking at a Leaders In Tech retreat. With Leaders in Tech, Robin set out to create a space for founders to practice vulnerability, free of the need to always be crushing it. The Leaders In Tech Retreat provides a world away from the relentless stress of Silicon Valley. 'If you really knew me'Participants meet in groups of 12, carefully selected to ensure no one is paired with a competitor or potential investor. "If you really knew me, you would know that I'm, I'm worried about whether or not my marriage is going to survive my startup."
Persons: Joe —, , Joe, they'd, hadn't, helming, Carole Robin, Robin, they're, Obi Felten, Oliver Hospitality, I'm, Felten Organizations: In Tech, Stanford Business School, Tech, UC Berkeley, Entrepreneurs, Google, Lodge, Menlo Locations: San Francisco, Tomales, Silicon Valley, Marconi, Marshall , California, Pacific, Felten's
Author and executive coach Carole Robin, speaking at a Leaders In Tech retreat. With Leaders in Tech, Robin set out to create a space for founders to practice vulnerability, free of the need to always be crushing it. The Leaders In Tech Retreat provides a world away from the relentless stress of Silicon Valley. 'If you really knew me'Participants meet in groups of 12, carefully selected to ensure no one is paired with a competitor or potential investor. "If you really knew me, you would know that I'm, I'm worried about whether or not my marriage is going to survive my startup."
Persons: Joe —, , Joe, they'd, hadn't, helming, Carole Robin, Robin, they're, Obi Felten, Oliver Hospitality, I'm, Felten Organizations: In Tech, Stanford Business School, Tech, UC Berkeley, Entrepreneurs, Google, Lodge, Menlo Locations: San Francisco, Tomales, Silicon Valley, Marconi, Marshall , California, Pacific, Felten's
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