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Andrew Bosworth AKA Boz, an advertising expert for Facebook, gives a talk at the Online Marketing Rockstars marketing trade show in Hamburg, Germany, 03 March 2017. Photo: Christian Charisius/dpa | usage worldwide (Photo by Christian Charisius/picture alliance via Getty Images)
Christian Charisius | picture alliance | Getty Images

Facebook CEO Mark Zuckerberg is turning to an old friend and former Harvard teaching assistant, Andrew “Boz” Bosworth, in a time of trouble for the company.

Last week, a damaging series of reports in The Wall Street Journal showed major problems in the company’s ecosystem, including a lack of content moderators for markets outside the U.S., an avalanche of anti-vaccine misinformation in user comments, and Facebook-owned Instagram’s negative effect on teens’ mental health.

Some of the reports said Facebook employees and execs knew of these problems but could not or would not fix them. Lawmakers have already pledged to question execs from Facebook and other Big Tech companies over social media’s effects on teens.

On Wednesday, Facebook shuffled its leadership. Mike Schroepfer, its CTO of more than eight years, will resign next year and will be replaced by Bosworth.

It’s not clear why Schroepfer is leaving, or whether it has anything to do with the Journal reports. In his note announcing his resignation, he said he hoped to dedicate more time to family and philanthropy while still helping out with recruiting and with artificial intelligence technologies as the company’s first senior fellow.

With Bosworth, Zuckerberg is once again turning to one of his most trusted deputies.

Since joining in 2006, Bosworth has gained a reputation as Zuckerberg’s go-to-fix-it guy. He has developed key products and turned around crucial divisions, including hardware and Facebook’s bread and butter: advertising. He has a reputation for being direct with his peers and subordinates. He also frequently posts his thoughts on technology, leadership and personal growth — internally and on his public blog.

Some of these thoughts are unusually blunt for a corporate exec. For instance, in a leaked memo from January 2020, Bosworth said Facebook was more like sugar than a toxin.

“While Facebook may not be nicotine I think it is probably like sugar,” he wrote. “Sugar is delicious and for most of us there is a special place for it in our lives. But like all things it benefits from moderation.”

In a 2016 memo that leaked, he wrote about an attitude among some Facebook employees that connecting people is “de facto good” even if it sometimes leads to bad outcomes, like bullying or a “terrorist attack coordinated on our tools.” After the leak, Bosworth and Zuckerberg explained that the memo was meant to criticize this mindset among Facebook employees rather than defend it.

Bosworth is also one of Facebook’s most accessible executives, posting frequently on Twitter or holding Q&A sessions on Instagram. Most recently, he launched a podcast called “Boz To The Future” where he and guests discuss the latest in technology.

He is a polarizing figure within the company as well. One former employee who spoke on condition of anonymity so as to not break is non-disclosure agreement with Facebook told CNBC that Bosworth thinks he’s a genius, but probably just got lucky in his career. However, a former company executive who worked directly with Bosworth for several years told CNBC that Bosworth is a passionate leader to work for who demands greatness out of his employees.

Facebook declined to comment.

News Feed, ads and hardware

Bosworth met Zuckerberg at Harvard as a teaching assistant in an artificial intelligence class. After Zuckerberg founded Facebook in 2004, Bosworth joined the company in January 2006 as one of the company’s earliest software engineers.

Within months, Bosworth had left his mark. He was one of the few software engineers who built what is now the most significant Facebook feature, News Feed. Prior to News Feed’s launch in September 2006, Facebook was a bunch of profiles users could jump between, leaving posts on each other’s “walls” as desired. News Feed brought all of these posts together in a single, never-ending screen, where the content just kept coming. Bosworth is regarded as the godfather of News Feed, a former executive told CNBC.

Some Facebook users were initially upset that their messages to one another were now easily visible for all their friends to see. But the feature eventually became a hit.

As Facebook transitioned from being primarily web-focused to mobile-first in 2012, Zuckerberg tapped Bosworth to lead the development of the company’s advertising products. In that role, Bosworth took a dysfunctional hodge-podge of products in a division that had been struggling, the former Facebook executive told CNBC, and he turned it into a a nearly $27 billion money-maker by the end of 2016.

In August 2017, Facebook announced that Bosworth would manage consumer hardware, including the company’s struggling skunkworks division of Building 8.

Even though Bosworth had no experience working on hardware, Zuckerberg turned to him to fix the teams, which included the virtual reality division Oculus acquired in 2014 for $2.3 billion. Oculus had barely released its first consumer headset, the Rift, a year earlier with little consumer success, and Building 8 was struggling to deliver products at the overzealous pace Facebook was expecting.

Over the past four years, Bosworth has reorganized and refocused Facebook’s hardware unit, which is now called Facebook Reality Labs.

Now, the company finally has a broad stable of hardware gadgets available for purchase. These include the Oculus Quest headset, the Portal, Portal Go, Portal+ and Portal TV video-calling devices, and smart glasses built in conjunction with Luxottica called Ray-Ban Stories. Earlier this year, Facebook also announced a new team within Reality Labs that will focus on the metaverse — a future space in virtual reality where people can meet.

Facebook has yet to break out specific sales figures for its hardware devices, but the company’s other revenue category, which includes Facebook’s Workplace enterprise software division, has grown to nearly $1.8 billion in 2020, up nearly 118% from $825 million in 2018.

Now, with a key spot needing to be filled, Zuck is turning to Bosworth again.

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Nintendo profit plunges 69% as it cuts forecast for sales of ageing Switch console

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Nintendo profit plunges 69% as it cuts forecast for sales of ageing Switch console

Mario poses at the “SUPER NINTENDO WORLD” welcome celebration at Universal Studios Hollywood on February 16, 2023 in Universal City, California.

Rodin Eckenroth | Getty Images Entertainment | Getty Images

Nintendo on Tuesday cut forecast for Switch sales for its fiscal year ending March 2025 as demand wanes for its ageing console.

The Japanese gaming giant said it now expects to sell 12.5 million units of the Switch over the course of the period. That’s down from a previous forecast of 13.5 million units.

Nintendo has been contending with fading demand for its flagship Switch console, which is now more than seven years old.

Investors are waiting for news surrounding a successor to the Switch, which they hope will re-energize Nintendo’s gaming business. In the past, the company said that the Switch successor will be announced in its current fiscal year, which ends in March 2025.

Nintendo also cut full fiscal year forecasts for sales and operating profit. The company said it now expects sales of 1.28 trillion yen versus a previous forecast of 1.35 trillion yen. The operating profit outlook for the period was slashed from 400 billion yen to 360 billion yen.

Here’s how Nintendo did in its fiscal second quarter ended Sept. 30 versus LSEG estimates:

  • Revenue: 276.7 billion Japanese yen ($1.8 billion), compared with 273.34 billion yen expected.
  • Net profit: 27.7 billion yen, versus 48.06 billion yen expected.

Revenue fell 17% year-on-year. Net profit plunged just over 69% versus the same period last year.

Super Mario, Zelda boost fading

The Switch is Nintendo’s second best-selling console in history, behind the Nintendo DS. Despite the recent fall in sales, Nintendo has prolonged the console’s appeal for an extended period of time since its launch in 2017 by relying on its recognizable characters.

In its last fiscal year, Nintendo managed to reinvigorate sales of the Switch thanks to the the success of the “Super Mario Bros. Movie” and the highly anticipated release of the “The Legend of Zelda: Tears of the Kingdom” game, which underscored the appeal of its iconic characters.

But that effect is fading.

On Tuesday, Nintendo noted the boost that the company received in the first half of its last fiscal year, but said “there were no such special factors in the first half of this fiscal year, and with Nintendo Switch now in its eighth year since launch, unit sales of both hardware and software decreased significantly year-on-year.”

Sales of the Switch totaled 4.72 units in the six months ended Sept. 30, compared with 6.84 million units in the same period of last year.

In the face of falling sales, Nintendo has tried to license out its intellectual property for use everywhere, from movies to theme parks. A new Super Mario movie is slated for release in 2026.

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Meta extends ban on new political ads past Election Day

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Meta extends ban on new political ads past Election Day

Meta’s Mark Zuckerberg plans to visit South Korea, scheduling key meetings during the trip, according to a statement by Meta on Wednesday, which did not provide further details. Reportedly, Zuckerberg is anticipated to meet with Samsung Electronics chairman Jay Y. Lee later this month to discuss AI chip supply and other generative AI issues, as per the South Korean newspaper Seoul Economic Daily, citing unnamed sources familiar with the matter.

Alex Wong | Getty Images News | Getty Images

Meta extended its ban on new political ads on Facebook and Instagram past Election Day in the U.S.

The social media giant announced the political ads policy update on Monday, extending its ban on new political ads past Tuesday, the original end date for the restriction period.

Meta did not specify the day it will lift the restriction, saying only that the ad blocking will continue “until later this week.” The company did not say why it extended the political advertising restriction period.

The company announced in August that any political ads that ran at least once before Oct. 29 would still be allowed to run on Meta’s services in the final week before Election Day. Other political ads will not be allowed to run.

Organization with eligible ads will have “limited editing capabilities” while the restriction is still in place, Meta said. Those advertisers will be allowed to make scheduling, budgeting and bidding-related changes to their political ads, Meta said.

Meta enacted the same policy in 2020. The company said the policy is in place because “we recognize there may not be enough time to contest new claims made in ads.”

Google-parent Alphabet announced a similar ad policy update last month, saying it would pause ads relating to U.S. elections from running in the U.S. after the last polls close on Tuesday. Alphabet said it would notify advertisers when it lifts the pause.

Nearly $1 billion has been spent on political ads over the last week, with the bulk of the money spent on down-ballot races throughout the U.S., according to data from advertising analytics firm AdImpact.

Watch: Tech still investing big in AI development despite few breakout products.

Tech still investing big in AI development despite few breakout products

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Jeff Bezos and OpenAI invest in robot startup Physical Intelligence at $2.4 billion valuation

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Jeff Bezos and OpenAI invest in robot startup Physical Intelligence at .4 billion valuation

Sam Altman, CEO of OpenAI, attends the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 18, 2024 (L), and Amazon CEO Jeff Bezos speaks during the UN Climate Change Conference (COP26) in Glasgow, Scotland, Britain, November 2, 2021.

Reuters

Physical Intelligence, a robot startup based in San Francisco, has raised $400 million at a $2.4 billion post-money valuation, the company confirmed Monday to CNBC.

Investors included Amazon founder Jeff Bezos, OpenAI, Thrive Capital and Lux Capital, a Physical Intelligence spokesperson said. Khosla Ventures and Sequoia Capital are also listed as investors on the company’s website.

Physical Intelligence’s new valuation is about six times that of its March seed round, which reportedly came in at $70 million with a $400 million valuation. Its current roster of employees includes alumni of Tesla, Google DeepMind and X.

The startup focuses on “bringing general-purpose AI into the physical world,” per its website, and it aims to do this by developing large-scale artificial intelligence models and algorithms to power robots. The startup spent the past eight months developing a “general-purpose” AI model for robots, the company wrote in a blog post. Physical Intelligence hopes that model will be the first step toward its ultimate goal of developing artificial general intelligence. AGI is a term used to describe AI technology that equals or surpasses human intellect on a wide range of tasks.

The news comes days after OpenAI launched a search feature within ChatGPT, its viral chatbot, that positions the AI startup to better compete with search engines like GoogleMicrosoft‘s Bing and Perplexity. Last month, OpenAI also closed its latest funding round at a valuation of $157 billion.

Physical Intelligence’s vision is that one day users can “simply ask robots to perform any task they want, just like they can ask large language models (LLMs) and chatbot assistants,” the startup wrote in the blog post. In case studies, Physical Intelligence details how its tech could allow a robot to do laundry, bus tables or assemble a box.

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