Australia is considering new regulations to make Meta Platforms, the parent company of Facebook, pay news companies for content. The development follows Meta’s decision to stop compensating Australian news publishers despite a 2021 law that mandates such payments. News Corp Australia’s executive chairman, Michael Miller, urged the government to enforce this law, criticising Meta for abandoning previous agreements and emphasising the need for fair negotiations.
Meta argues that interest in news on its platforms is declining and views its services as free distribution channels for media companies. However, publishers claim that social media platforms profit unfairly from advertising revenue linked to news content. As a consequence, if the government enforces the 2021 law, Meta might restrict news sharing on Facebook in Australia, as it has done in Canada, leading to concerns about increased misinformation.
Miller also highlighted the negative impacts of social media on mental health and called for a regulatory framework to protect Australians. His proposal includes holding tech firms accountable for all content, enforcing competition laws for digital advertising, improving consumer complaint processes, and supporting mental health programs. He suggested barring companies that fail to comply with these rules from operating in Australia. Meta has defended its actions, stating that it respects Australian laws and community standards and has implemented measures to promote online safety and prevent harm.
Despite the ongoing conflict with Hamas in Gaza, Israel’s high-tech sector now contributes 20% to the country’s economic output, according to the Israel Innovation Authority (IIA). In 2023, 600 new startups were launched, and tech firms raised $8 billion, a 55% decrease from 2022. Israel has around 9,200 tech firms employing 400,000 people. It remains the country’s main growth driver, accounting for 53% of total exports.
To continue supporting tech growth, the IAA’s chief executive told Reuters that the government needs to increase investment in the sector, given Israel’s limited natural resources. Innovation, Science and Technology Minister echoed this sentiment and stressed the importance of innovation as Israel’s ‘most important resource’.
Cybersecurity and fintech are the leading sectors for investment, with climate tech also gaining traction. IIA also noted that around 8% of tech workers were called into army reserve duty, and many volunteered. The authority predicts a surge in new startups due to recent connections and insights into civilian and defense needs from the conflict.
Why does it matter?
The IIA’s call is well justified. Despite foreign investors remaining active due to attractive valuations of Israeli companies, the tech sector has not been immune to the Israel-Hamas conflict. A survey by the Israel Advanced Technology Industries revealed that 65% of venture capital funds faced operational challenges due to their Israeli identity, and over 30% of Israeli companies and startups have relocated significant activities abroad.
OpenAI has secured licensing agreements with The Atlantic and Vox Media, expanding its partnerships with publishers to enhance its AI products. These deals allow OpenAI to display news from these outlets in products like ChatGPT and use their content to train its AI models. Although financial terms were not disclosed, this move follows similar agreements with major publishers like News Corp., Dotdash Meredith, and The Financial Times.
Executives from The Atlantic and Vox Media emphasised that these partnerships will help readers discover their content more easily. Nicholas Thompson, CEO of The Atlantic, highlighted the importance of AI in future web navigation and expressed enthusiasm for making The Atlantic’s stories more accessible through OpenAI’s platforms.
Additionally, these agreements will provide the publishers access to OpenAI’s technology, aiding them in developing new AI-powered products. For instance, The Atlantic is working on Atlantic Labs, an initiative focused on creating AI-driven solutions using technology from OpenAI and other companies.
OpenAI, led by Sam Altman, has entered a significant deal with media giant News Corp, securing access to content from its major publications. The agreement follows a recent content licensing deal with the Financial Times aimed at enhancing the capabilities of OpenAI’s ChatGPT. Such partnerships are essential for training AI models, providing a financial boost to news publishers traditionally excluded from the profits generated by internet companies distributing their content.
The financial specifics of the latest deal remain undisclosed, though the Wall Street Journal, a News Corp entity, reported that it could be valued at over $250 million across five years. The deal ensures that content from News Corp’s publications, including the Wall Street Journal, MarketWatch, and the Times, will not be immediately available on ChatGPT upon publication. The following move is part of OpenAI’s ongoing efforts to secure diverse data sources, following a similar agreement with Reddit.
The announcement has positively impacted News Corp’s market performance, with shares rising by approximately 4%. OpenAI’s continued collaboration with prominent media platforms underscores its commitment to developing sophisticated AI models capable of generating human-like responses and comprehensive text summaries.
Crypto startup funding surged to $2.4 billion in the first quarter of 2024, marking a second consecutive quarter of growth, according to data from PitchBook. Expectations of lower interest rates and the launch of the first US bitcoin spot ETF fueled this 40.3% increase from the previous quarter. Despite the global venture capital investments hitting a near five-year low, the crypto sector saw substantial investor interest spread across 518 deals.
Why does it matter?
The rise in funding comes after a significant downturn from the peak of over $10 billion in early 2022, driven by economic uncertainties and the collapse of major market players. However, the approval of spot bitcoin ETFs by US regulators, with offerings from financial giants like BlackRock and Fidelity, has bolstered the credibility of digital assets, pushing bitcoin to an all-time high of $73,803 in March. This renewed confidence is expected to continue driving venture capital into the sector, as PitchBook analyst Robert Le noted.
Infrastructure-focused crypto and blockchain startups attracted the most funding during this period, with the largest deal being decentralised cloud platform Together AI’s $106 million early-stage round led by Salesforce Ventures, valuing the company at $1.1 billion. According to Le, early-stage deals are becoming increasingly competitive and often receive higher valuations than their late-stage counterparts. While exits remain low, mergers, particularly among exchanges, custodians, and infrastructure providers, are anticipated to increase as the market evolves.
Google’s deployment of AI to condense search results is causing publishers’ concern about potential website traffic declines. The update to Google’s search engine, recently announced, will introduce AI-generated summaries of online queries in the US, with plans to expand globally. The implementation of AI in Google browsers could diminish the significance of links and web pages for over a billion users, potentially reducing audiences for bloggers, news outlets, and other online content creators who rely on Google referrals.
The AI-generated summaries, produced by Google’s Gemini technology, will offer concise insights from various online sources with minimal links. Google claims the change will encourage users to explore a wider range of websites, but critics, including Marketing AI Institute CEO Paul Roetzer, anticipate negative impacts on publishers and advertisers. With little information Google provides about the implications for these stakeholders, uncertainty looms over the future of online visibility and revenue generation.
Jeff Jarvis, a professor at CUNY Graduate School of Journalism, suggests that news organisations with credible information could benefit from partnerships with AI giants. However, the advertising industry faces uncertainties, with Semasio CEO Jeff Ragovin warning of potential revenue losses and the need for better-targeted ads amidst the AI-driven search landscape.
Reddit has announced a new partnership with OpenAI, allowing the popular chatbot ChatGPT to access Reddit’s content. The partnership caused Reddit’s shares to surge by 12% in extended trading, and it is part of Reddit’s strategy to diversify its revenue streams beyond advertising, complementing its recent agreement with Alphabet, which enables Google’s AI models to use Reddit’s data.
OpenAI will utilise Reddit’s application programming interface (API) to access and distribute content, marking a big step in integrating AI with social media data. Additionally, OpenAI will serve as a Reddit advertising partner, potentially boosting Reddit’s advertising revenue.
Why does it matter?
The development follows Reddit’s IPO in March and its lucrative deal with Alphabet worth around $60 million annually. Investors see these partnerships as crucial for generating revenue from data sales, supplementing the company’s advertising income. Reddit’s recent financial reports indicate strong revenue growth and improving profitability, reflecting the success of its AI data deals and advertising initiatives. Consequently, Reddit’s stock has risen by 10.5% to $62.31, showing a significant increase since its market debut.
Paul Tran and his wife Lynda experienced a transformative moment when their skincare brand gained viral attention on TikTok. The couple, based in Atlanta, saw their business, @loveandpebble, skyrocket in popularity after showcasing their Beauty Pops ice face masks on the platform in 2021. The viral exposure led to sold-out inventory and features on major shows like ‘The Today Show’ and ‘Shark Tank.’
However, their success is now threatened by a bill passed by the US Senate, signed into law by President Joe Biden in April, which could ban TikTok in the US if its owner, ByteDance, fails to divest the app within a year. The legal move is driven by concerns over data security and potential spying by China. TikTok creators, including small business owners like Tran, are fighting back, with some suing the US government to block the law and preserve their livelihoods.
Why does it matter?
For many small businesses, TikTok has been a lifeline, offering unparalleled opportunities for exposure and growth that American-owned platforms like Meta, Alphabet, and Snap have struggled to replicate. The app’s algorithm, combined with features like TikTok Shop, which allows creators to sell directly within the app, has been instrumental in propelling businesses to success.
The stories of entrepreneurs like Summer Lucille and Felicia Jackson underscore TikTok’s unique ability to level the playing field for small creators. Lucille found rapid success with her plus-size clothing company after years of frustration on other platforms, while Jackson credits TikTok with revitalizing her business, CPRWrap, after previous attempts on platforms like Facebook and Pinterest fell short. As rivals like Meta’s Instagram attempt to address disparities in content reach, the enduring appeal of TikTok lies in its ability to foster communities and provide equal opportunities for creators of all sizes.
Meta Platforms, the parent company of Facebook, announced that it will discontinue its Workplace app, a platform geared towards work-related communications. The social media platform made this decision as it shifted its focus towards developing AI and metaverse technologies. The Workplace app will be phased out for customers starting in June 2026, although Meta will continue to utilise it internally as a messaging board until August 2025, according to a statement from the company.
A spokesperson for Meta stated that they are discontinuing Workplace to focus on building AI and metaverse technologies that they believe will fundamentally reshape the way they work. Over the next two years, Workplace customers will have the option to transition to Zoom’s Workvivo product, which Meta has designated as its preferred migration partner. Workplace was initially launched in 2016 to cater to businesses, offering features such as multi-company groups and shared spaces to facilitate collaboration among employees from different organizations.
Why does it matter?
The discontinuation of Workplace aligns with Meta’s strategic emphasis on advancing AI and metaverse technologies, which it views as integral to the future of digital communication. The strategic change of business direction has raised concerns about escalating costs that could potentially impact the company’s growth trajectory. Despite the discontinuation of Workplace, Meta has assured customers that billing and payment arrangements will remain unchanged until August of this year. Currently, Workplace offers a core plan priced at $4 per user per month, with additional add-ons available starting from $2 per user per month, with monthly bills calculated based on the number of billable users unless a fixed plan is in place.
TikTok is experimenting with an enhanced search feature, utilising generative AI to provide more comprehensive search results. Dubbed ‘search highlights’, this feature showcases AI-generated snippets at the top of certain search result pages, offering users a glimpse into the full response by clicking through. Initial tests reveal AI-generated responses for queries ranging from recipes to product recommendations, such as ‘best laptops 2024’.
Powered by ChatGPT, TikTok’s AI search results aim to surface relevant content based on user queries. However, the feature has limitations, with not all searches yielding AI-generated answers. Some search queries display results generated by ChatGPT alongside a broader ‘search highlights’ feature.
The birth of the new search tool, backed by AI, reflects TikTok’s ongoing efforts to enhance its in-app search functionality, aligning with users’ habits, particularly among younger demographics. Recognising TikTok’s role as a search destination for recommendations and information, the platform previously experimented with integrating Google Search results and direct links to external websites like Wikipedia and IMDb. By incorporating AI-driven results prominently, TikTok aims to cater to users’ preferences and further solidify its position as a go-to platform for discovering diverse content.
