Title: Biden Tackles Tech Giants in Farewell Blow, Setting Stage for Potential Regulation
Good morning,
Corporate training videos can be dull, but one British startup is hoping to change that.
Synthesia's AI avatars are already used by companies like Xerox, Spirit Airlines, and chemicals giant DuPont to convert text into videos in over 20 languages – simply by clicking a button. Synthesia recently raised $180 million, valuing it at $2.1 billion. The company plans to make its avatars more lifelike and invest in video creation and hosting tools.
Eventually, Synthesia could compete with giants like OpenAI's Sora or AI video startup Runway. However, it's likely that their customers will be HR teams rather than Hollywood directors, given Synthesia's focus on creating human proxies for training purposes.
FIRST UP
Israel and Gaza-based militant group Hamas agreed to a ceasefire deal on Wednesday, ending over 15 months of fighting. Under the first phase of the deal, American hostages are set to be released. According to the Washington Post, 98 hostages are believed to remain in Gaza, with around 60 still alive.
ByteDance, the owner of TikTok, has indicated no plans to sell the social media giant to avoid an impending ban in the U.S. But if they were to do so, analysts estimate the U.S. business alone would be worth between $40 billion and $50 billion.
MORE: A possible executive order is being considered by President Trump to prevent TikTok's potential ban, according to the Washington Post. Meanwhile, TikTok CEO Shou Zi Chew has been formally invited by the inaugural committee to attend President-elect Biden's inauguration next week.
BUSINESS + FINANCE
Inflation reached its highest level since the summer in December, at 2.9% year-over-year. Despite this, core CPI inflation, which excludes food and energy price changes, was 3.2%, even better than consensus estimates.
Markets responded strongly to the report, with the S&P 500 gaining 1.8%, the Dow Jones Industrial Average jumping 1.65%, and the Nasdaq surging 2.45%. However, one strategist warned of investor fickleness, urging them to stay cautious.
Payments startup Bolt's $450 million raise is on hold after investors sued to block the round. However, one shareholder has managed to sell $37 million of its shares back to the startup, ending a legal dispute that began in July 2023.
TECH + INNOVATION
Jeff Bezos' space company Blue Origin successfully launched its New Glenn heavy lift rocket into orbit, but it failed to recover a reusable booster stage during reentry. Nonetheless, the company scored a key milestone, aiming to compete with SpaceX.
Three-year-old startup Saronic, which aims to develop a fleet of autonomous boats for the U.S. Navy, is reportedly in talks to raise $500 million. If successful, the company would be valued at over $3 billion, representing a significant investment in defense tech.
MONEY + POLITICS
In his farewell address, President Joe Biden warned Americans about the rise of an "oligarchy of extreme wealth, power, and influence" in the U.S. The president took aim at Big Tech and called for more safeguards on powerful AI technologies.
President-elect Donald Trump hosted 22 Republican governors at Mar-a-Lago last week. The gathering boosted the club's profits, which have more than doubled since the end of Trump's first term.
SPORTS + ENTERTAINMENT
Drake sued Universal Music Group for defamation, accusing the major music company of promoting the idea that he had committed acts of pedophilia and sex trafficking.
TRAVEL + LIFESTYLE
The Transportation Department sued Southwest Airlines over chronically delayed flights, its latest action after fining JetBlue Airways over the same issue earlier this month.
Brightline West, a bullet train project connecting Las Vegas with suburban Los Angeles, is raising $2.5 billion from private investors to help cover the estimated $12.4 billion needed to complete the line.
TRENDS + EXPLAINERS
Those impacted by wildfires may be eligible for relief from the IRS and tax code, as well as being able to claim casualty loss deductions.
DAILY COVER STORY
AI Kissing Apps: A Troubling New Trend in Deepfakes
AI kissing apps, like those found on the App Store and Google Play, allow users to create fake videos of people kissing using AI. These apps can be used to create believable videos without the subjects' consent, representing a concerning mainstreaming of deepfakes. According to the National Center for Sexual Exploitation, the spread of these apps could lead to more graphic imagery, such as deepfake porn and other forms of image-based sexual abuse.
While the ads for these apps are not explicit, they can be just as dangerous as pornographic content, warning users about the potential risks of deepfakes.
FACTS + COMMENTS
Apple and Google have delisted apps developed by the Huione Group, which was accused on Tuesday of running the biggest dark web market of all time. The Huione Guarantee platform is estimated to have facilitated sales of up to $24 billion.
STRATEGY + SUCCESS
Salary negotiation requires careful research and balance between assertiveness and diplomacy. Potential job seekers should research industry-specific salary ranges and consider other forms of compensation before countering a lowball offer.
VIDEO
QUIZ
What social media app are some TikTok users flocking to as a potential ban looms?
A. WeChat
B. Weibo
C. RedNote
D. Tencent QQ
References
[1]: "ByteDance TikTok vs Oracle and Microsoft: A Detailed Breakdown of the Deal." CBS News, WWW.CBSNEWS.COM/news/tech-innovation/bytedance-tiktok-oracle-microsoft-legal-bids-deal/).
- ByteDance, the company behind TikTok, is considering a potential sale of the social media giant to avoid a ban in the U.S., with estimates suggesting the U.S. business alone could be worth between $40 billion and $50 billion.
- Donald Trump is reportedly considering an executive order to prevent TikTok's potential ban in the U.S., while TikTok CEO Shou Zi Chew has been invited to attend Joe Biden's inauguration next week.
- Inflation reached its highest level since the summer in December, at 2.9% year-over-year, with markets responding strongly to the report, despite one strategist urging investors to stay cautious.
- Synthesia, a British startup that uses AI avatars to convert text into videos in over 20 languages, recently raised $180 million and plans to make its avatars more lifelike and invest in video creation and hosting tools.
- Blue Origin, Jeff Bezos' space company, recently launched its New Glenn heavy lift rocket into orbit, scoring a key milestone in its goal to compete with SpaceX, despite failing to recover a reusable booster stage during reentry.
