Bloomberg Technology 03/08/2024

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Market Performance

Stocks and cryptocurrencies reached record highs, with Bitcoin hitting $70,000 and the AI sector driving the rally.
The macro environment is favorable, with the Fed likely to raise rates but not too aggressively, leading to a 6.10% increase in the Nasdaq, a new record high for both the Nasdaq and S&P 500.
Tech companies, especially those focused on AI, are leading the charge, with the S&P 500 also pushing higher.

Rivian had a positive day after unveiling its R2 vehicle but paused plans for a new factory in Georgia.
Broadcom missed earnings and sales estimates, but its outlook for the fiscal year indicates that AI will contribute to growth of nearly 5%, up from the previous estimate of 25%.
Huawei's Mate 60 smartphone reportedly used equipment from two U.S. chipmakers, despite U.S. restrictions on technology exports to China.
NVIDIA continued its momentum, adding $1 trillion in value year-to-date, driven by its exposure to China without the same concerns as other companies.
Microsoft revealed that a Russian hacking group attempted to access its systems using information from a compromised account, but no customer-facing systems were affected.
Semiconductor connectivity company Asteria Labs plans to raise $500 million in an IPO, hoping to capitalize on investor demand for artificial intelligence.
Rivian announced that it will not build a factory in Georgia, saving $2.2 billion in capital expenditures, and will instead produce its mass-market R2 model in its existing facility in Illinois.

Concerns were raised about the limitations and ethical implications of generative AI, particularly regarding fairness and bias in evaluating job candidates using tools like ChatGPT.
Consumer chatbots are trained on internet data, which can be unreliable and lead to incorrect responses.
Business AI requires a high level of accuracy and trust, which is why Salesforce has developed a trust layer with features like data masking and zero retention prompts.
The democratization of AI through no-code and low-code platforms allows business analysts and pro code developers to build apps faster.
There are concerns about the diversity and bias of AI systems due to the data they ingest.
A Bloomberg experiment revealed that ChatGPT exhibited racial bias when ranking equally qualified resumes for different jobs.
AI demand is driving growth, with Apple finally trading higher after a few weeks of decline.
NVIDIA's stock dropped 3.7% due to profit-taking and volatility.
Despite a two-year high in unemployment, hiring continues in the tech sector.
AI talent demand is high, but there's a scarcity of skilled workers.
AI is shifting from efficiency and cost-cutting to innovation and product growth.
Companies need help developing and commercializing AI products.
Tribe AI works with companies to build AI products that matter for their business.
Independent AI engineers prefer working with Tribe AI for more freedom and the opportunity to work on cutting-edge projects.

President Biden called for a ban on AI voice impersonations in his State of the Union address.
The details of the ban and its potential impact on the entertainment industry are unclear.

Stephanie Kirkpatrick, CEO of a fintech company, discusses the collapse of Silicon Valley Bank (SVB) and its impact on startups and the banking system.
She highlights the importance of not relying on a single financial institution and the need for diversification to ensure resiliency and redundancy in the payments and banking sector.
Kirkpatrick emphasizes the benefits of working with both large and small banks, each offering different advantages and protections.
She stresses the increased awareness among companies about the risks of concentration and the growing trend of diversifying payments and banking traffic.
Kirkpatrick introduces a new product that connects directly to the Federal Reserve Bank, enabling instant payments and reducing the time to value for businesses.
She expresses optimism about the recovery of startups and the overall financial health of customers following the SVB collapse.

The CEO of HubSpot, Yamini Rangan, was interviewed about her approach to diversity, equity, and inclusion (DEI) in the workplace.
Rangan believes that DEI is not an initiative or annual program, but rather something that needs to be built into the DNA of the company.
HubSpot's leadership team is 50% women and its board is 60% women and people of color.
Rangan says that diversity is important because it helps to ensure that the company's products and services are representative of the communities they serve.
She also believes that diversity is good for business and that there is enough proof to support this.
Rangan is past the point of trying to prove diversity with data