Wolfspeed is set to receive $750 million in government grants for its new silicon carbide wafer manufacturing plant in North Carolina, as announced by the US Commerce Department. This funding news caused the US chipmaker’s shares to surge over 30%. The preliminary agreement requires Wolfspeed to strengthen its balance sheet to safeguard taxpayer funds.
Investment firms, led by Apollo Global Management, have pledged an additional $750 million in financing for Wolfspeed. The company produces energy-efficient chips using silicon carbide, crucial for applications like electric vehicles and renewable energy systems. As part of a larger $6 billion expansion plan, Wolfspeed aims to increase its manufacturing capacity in Marcy, New York.
Wolfspeed anticipates up to $1 billion in cash tax refunds from the advanced manufacturing tax credit under the Chips and Science Act. CEO Gregg Lowe highlighted the significance of Wolfspeed’s products to the US economy and national security. However, the company has encountered difficulties this year, with its stock plummeting nearly 75% due to a decline in electric vehicle demand. The grant remains subject to due diligence and is not yet finalised.
Meta experienced another wave of layoffs on Wednesday, affecting multiple teams, including those working on Threads, recruiting, legal operations, and design. These cuts are part of the company’s ongoing effort to reallocate resources that are aligned with its strategic goals and location strategy. According to a statement from Meta, some teams were relocated, and certain employees were shifted to new roles, while others faced job eliminations. In cases where roles were cut, Meta stated that it works to provide new opportunities for affected employees.
While the exact number of layoffs remains unclear, social media posts and anonymous employee accounts suggest several team members were dismissed through video calls. Some of those affected received six weeks of severance pay. According to The Verge, teams from Meta’s Reality Labs, Instagram, and WhatsApp divisions were also impacted by this round of layoffs.
Why does it matter?
Meta has been undergoing significant workforce reductions following the company’s pandemic-era expansion. In 2022, the tech giant laid off 13% of its workforce—approximately 11,000 employees—with CEO Mark Zuckerberg taking responsibility for the decision. Another 10,000 employees were cut in 2023, along with the withdrawal of 5,000 open positions. These ongoing changes reflect Meta’s shift toward streamlining operations amid a challenging economic environment.
The US Supreme Court declined to hear an appeal from Uber Technologies Inc. and its subsidiary Postmates regarding California’s Assembly Bill 5 (AB5), effectively upholding a lower court ruling that mandates stricter worker classification standards. AB5 requires companies to classify their drivers as employees instead of independent contractors, which would significantly increase labour costs for these companies.
The Supreme Court’s decision upholds a ruling from the 9th US Circuit Court of Appeals, which determined that Uber and Postmates failed to demonstrate that AB5 unfairly targeted their services while exempting other industries. Although California voters approved Proposition 22 in 2020, allowing gig economy companies to classify drivers as independent contractors, this measure does not completely exempt them from AB5’s requirements. Recently, the California Supreme Court upheld Proposition 22, rejecting labour union claims that it violated the state constitution.
Theane Evangelis, an attorney for Uber, reiterated the company’s position, stating that Proposition 22 ensures drivers retain independence while receiving certain benefits. Critics argue that classifying workers as independent contractors allows companies to avoid providing essential protections, such as minimum wage and overtime pay. As debates over gig worker classification continue, the US Department of Labor has proposed a federal rule to tighten criteria for independent contractor status, which is also being challenged in court by business groups.
Japanese tech giants NTT Communications and SoftBank are developing AI-driven systems to support call centre employees dealing with abusive customers. NTT Communications has designed a support system that monitors interactions, providing operators with appropriate real-time responses. During a recent demonstration, the system suggested a response to a customer complaint, which was then confirmed as effective.
The technology aims to reduce the psychological stress faced by call centre staff, who often struggle to remain composed when confronted with aggressive callers. By providing quick and accurate responses, the system may also help calm upset customers, according to NTT Communications.
Meanwhile, SoftBank is working on an AI system that modifies the tone of customer voices during interactions, aiming to ease tensions. The company plans to launch this service by fiscal year 2025. These developments address the growing issue of ‘kasu-hara,’ or customer harassment, in Japan, where verbal abuse and demands for excessive apologies have led to mental health issues and job resignations among workers in service industries.
On Monday, Britain announced a major investment of £6.3 billion ($8.2 billion) by US companies ServiceNow, CyrusOne, CloudHQ, and CoreWeave in UK data centre technology. This announcement aligns with the UK government’s broader economic plans, as Prime Minister Keir Starmer hosts the International Investment Summit in London, gathering hundreds of global business leaders.
At the summit, the government is set to unveil an additional £50 billion ($65 billion) in new investments aimed at stimulating growth in sectors like AI, life sciences, and infrastructure. Starmer, emphasising the importance of private sector involvement, aims to create a stable environment that fosters economic expansion, aligning with his Labour Party’s commitment to boosting the economy.
The event will also feature discussions between ministers and business leaders on capitalising on opportunities in emerging industries, including health tech, clean energy, and creative sectors.
Unily has introduced its new ‘Insight Center’, a platform designed to help large enterprises integrate and manage digital assistants and language models. The solution provides a central access point for multiple AI tools, streamlining their use across business functions like HR and customer service. It also ensures efficient governance and prioritises simplicity in its user experience.
At its annual event, Unite 24, Unily also announced the launch of ‘Unily Go’, a mobile app focused on improving engagement and communication for frontline workers. The app helps connect employees who don’t have access to desktop computers, offering secure messaging and personalised features to keep teams connected.
By partnering with industry leaders such as Microsoft and Workgrid, Unily ensures its platform offers a comprehensive and secure way for organisations to interact with the digital assistants of their choice. Unily Go, in particular, addresses the need for better communication tools for mobile workers in sectors like retail and manufacturing.
Both the Insight Center and Unily Go will become part of the Unily employee experience platform in 2025. The company plans to offer these features with white-labelling options so businesses can align the tools with their corporate branding.
Adobe has launched its Firefly Video Model, an AI tool that generates video from text prompts, stepping into the growing competition in generative AI for film and television production. This move positions Adobe alongside rivals like OpenAI, ByteDance, and Meta Platforms, all of whom have recently released similar video tools.
Adobe, however, distinguishes itself by training its models on data it owns the rights to, ensuring the generated content can be legally used for commercial purposes. While a general release date is not confirmed, Adobe has begun offering access to those who signed up for the waiting list.
Although no customers have been announced for the video tool, Gatorade is using Adobe’s image generation model to create custom bottle designs, and Mattel has applied the technology in designing packaging for its Barbie dolls. Adobe has geared its video tools towards creators, making them user-friendly for everyday video production.
Ely Greenfield, Adobe’s chief technology officer for digital media, highlighted that the focus is on ensuring the AI understands key video production concepts like camera angles and motion, allowing it to seamlessly blend with conventional footage.
OpenAI‘s head of media partnerships, Varun Shetty, recently stated that the company does not intend to share advertising revenue from its SearchGPT product with publishers. During his address at the Twipe Digital Growth Summit in Brussels, Shetty highlighted OpenAI’s belief that it can provide value to publishers by driving significant traffic from new audiences rather than offering financial compensation. He also acknowledged the importance of a mutually beneficial relationship and indicated that OpenAI is exploring ways to ensure publishers find enough value to remain included in SearchGPT results.
Varun Shetty compared OpenAI’s approach to that of Google’s AI Overviews, which have been criticised for diminishing publishers’ visibility in search results. In contrast, the AI-powered search engine Perplexity has established revenue-sharing agreements with multiple publishers, and Microsoft has announced plans to pay publishers for content featured by its productivity assistant, Copilot. Currently, in an experimental phase, SearchGPT aims to provide answers in natural language while clearly indicating sources. OpenAI intends to integrate SearchGPT into its flagship ChatGPT product by the end of the year.
Shetty stressed the need to balance user experience with publisher needs, noting that while users seek answers, they also want to verify information. He assured publishers they could opt out of SearchGPT results if desired, and any publisher wanting to participate only needs to permit OpenAI’s search bot on their site. He emphasised that SearchGPT has the potential to drive significant traffic without complicating the decision-making regarding content training.
In addition to discussing SearchGPT, Shetty expressed how OpenAI could assist the news industry, noting that while audiences are not interested in AI-generated news, AI can help streamline journalistic tasks, such as story recommendations and multimedia management. He also hinted at advancements in the next GPT model, which will enable more complex user requests, enhancing its usefulness for various applications.
In a recent interview with The Wall Street Journal, AI pioneer Yann LeCun dismissed concerns about AI poses an existential threat to humanity, calling them ‘complete B.S.’ LeCun, a professor at New York University and senior researcher at Meta, has been vocal about his scepticism, emphasising that current AI technology is far from achieving human-level intelligence. He previously tweeted that before worrying about super-intelligent AI, we need to first create a system that surpasses the intelligence of a house cat.
LeCun argued that today’s large language models (LLMs) lack essential capabilities like persistent memory, reasoning, planning, and a comprehension of the physical world—skills even a cat possesses. In his view, while these models are adept at manipulating language, this does not equate to true intelligence, and they are not advancing toward developing artificial general intelligence (AGI).
Despite his scepticism about current AI capabilities, LeCun is not entirely dismissive of the potential for AGI in the future. He suggested that developing AGI will require new approaches and pointed to ongoing work by his team at Meta, which is exploring ways to process and understand real-world video data.
In a lengthy blog post, Anthropic CEO Dario Amodei presented an optimistic vision for the future of AI, asserting that powerful AI could emerge as soon as 2026. He envisions AI that surpasses human intelligence in key fields, capable of performing complex tasks such as solving mathematical theorems and conducting sophisticated experiments. Amodei believes this advanced technology could lead to groundbreaking advancements in healthcare, potentially curing diseases and doubling human lifespans within the next few decades.
Critics are sceptical about Anthropic CEO Dario Amodei’s ambitious claims regarding the future of AI, pointing out current limitations such as the technology’s inability to think independently and the challenges in applying AI solutions in real-world healthcare settings. While Amodei envisions AI tackling global issues like hunger and climate change and boosting economies in developing countries, he concedes that achieving these goals will necessitate substantial global cooperation and philanthropic efforts.
Despite acknowledging the potential risks and biases associated with AI, Dario Amodei does not present concrete solutions for the economic disruptions that may occur as AI replaces human jobs. He suggests that society will need to rethink its economic structure in an AI-dominated future but offers minimal guidance on navigating these changes. While he frames AI as a transformative force for good, sceptics remain cautious about the significant challenges and ethical dilemmas it presents.
