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Defiance ETFs CEO and CIO Sylvia Jablonski provides insight on Microsoft’s earnings and the impact of AI on “Making Money.”
Google and Microsoft, two of the biggest players in the artificial intelligence (AI) space and tech sector rivals, provided updates on their respective AI programs on Tuesday when the companies announced their first-quarter earnings.
Both companies have invested heavily in AI-related research and its applications for the web search, where the two firms are engaged in a particularly tense competition following Microsoft’s addition of AI to its Bing search engine, in addition to cloud storage and more.
Here’s a look at some of the AI-related highlights from the Google and Microsoft first-quarter earnings calls.
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Microsoft and OpenAI’s ChatGPT and Google’s Bard are among the leading artificial intelligence platforms, and the competition between the tech giants is intensifying. (Jonathan Raa / NurPhoto via Getty Images / File / Getty Images) GOOGLE
Sundar Pichai, the CEO of Google and parent company Alphabet, said that in the first quarter the company "introduced important product updates anchored in deep computer science and AI."
Those improvements are focused on three areas: "Continuing to build up state-of-the-art large language models and make significant improvements across our products to be more helpful to our users. Empowering developers, creators and partners with our tools. And enabling organizations of all sizes to utilize and benefit from our AI advances."
Pichai noted the release of an updated version of the Google Bard AI chatbot earlier this month after it first debuted in March to include coding capabilities that had been requested by users. The company is doing that by incorporating its Pathways Language Model (PaLM) into Bard, as the PaLM is a large language model (LLM) that was trained on a larger dataset that the prior LLM, known as LaMDA.
GOOGLE UNVEILS NEW BARD AI CAPABILITIES FOR CODING
A person holds an iPhone using the Google Bard generative AI language model (chatbot) with prompt entry field. (Smith Collection / Gado / Getty Images / File / Getty Images)
"We have since added our PaLM model to make it even more powerful, and Bard can now help people with programming and software development tasks, including code generation. Lots more to come," Pichai said.
He added that PaLM is being incorporated into the new MakerSuite for developers and noted, "It provides a simple way to access our large language models and begin building new generative AI applications quickly. A number of organizations are using our generative AI large language models across Google Cloud platform, Google Workspace and our cybersecurity offerings."
On potential AI-related improvements to Google’s search engine, Pichai didn’t go into detail but said, "We will continue to incorporate generative AI advances to make search better in a thoughtful and deliberate way."
Google is reportedly planning to release new AI tools for search as a means of countering the incorporation of ChatGPT into Microsoft’s Bing search engine. The New York Times reported that the AI search features are being developed by Google under the codename "Magi" and could have an initial rollout next month with additional features in the fall.
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“The worlds most advanced AI models are coming together with the worlds most universal user interface natural language to create a new era of computing,” says Microsoft CEO Satya Nadella. (AP Photo / Ted S. Warren / File / AP Newsroom) MICROSOFT
"The world’s most advanced AI models are coming together with the world’s most universal user interface – natural language – to create a new era of computing," said Microsoft CEO Satya Nadella. "Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI."
Nadella said Microsoft has more than 2,500 customers using its Azure OpenAI service, which became generally available in January and had GPT-4 incorporated in March.
"We have the most powerful AI infrastructure, and it’s being used by our partner, OpenAI, as well as NVIDIA and leading AI startups like Adept and Inflection to train large models. Our Azure OpenAI Service brings together advanced models, including ChatGPT and GPT-4, with the enterprise capabilities of Azure."
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Nadella called Microsoft 365 Copilot the "future of work" in his opening remarks. Copilot was released last month and appears in Microsoft Office programs like Word, Excel, PowerPoint and Outlook as an AI chatbot that can help draft content and presentations, summarize email threads and automate repetitive tasks.
"Microsoft 365 Copilot combines next generation AI with business data in the Microsoft Graph and Microsoft 365 applications, removing the drudgery and unleashing the creativity of work," Nadella said. "Copilot works alongside users, embedded in the Microsoft 365 applications millions use every day, and it also powers Business Chat, which uses natural language to surface information and insights based on business content and context."
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Microsofts Bing has 100 million daily users and Nadella said that downloads of the search engine have jumped since AI features were incorporated into the tool. (Jonathan Raa / NurPhoto via Getty Images / File / Getty Images)
Microsoft’s Bing has 100 million daily users and Nadella said that downloads of the search engine have jumped since AI features were incorporated into the tool. Specifically, Nadella said that "daily installs of the Bing mobile app have grown [four times] since launch."
"We continue to innovate with first-of-their-kind AI-powered features, including the ability to set the tone of chat and create images from text prompts, powered by Dall-E. Over 200 million images have been created to date," Nadella said.
Nadella also said Microsoft will "share how we are building the most powerful AI platform for developers" at the company’s Build conference, which is scheduled for May 23-25, 2023.Ticker Security Last Change Change % GOOGL ALPHABET INC. 103.85 -2.12 -2.00%MSFT MICROSOFT CORP. 275.42 -6.35 -2.25%
Donald Trump has acted for his country and I will act in Britain’s interests, Sir Keir Starmer has said after the US president imposed 10% tariffs on UK goods.
The prime minister told business chiefs at an early morning meeting in Downing Street: “Last night the president of the United States acted for his country, and that is his mandate.
“Today, I will act in Britain’s interests with mine.”
Mr Trump announced sweeping tariffs on countries around the world, with the UK getting off relatively lightly with 10% tariffs – branded “kind reciprocal” by the president – compared with China, which will have to pay 54% tariffs and 20% for the EU.
A previously announced 25% tariff on British car imports to the US came into effect at 5am on Thursday.
Sir Keir said the government is moving “to the next stage of our plan” after negotiations failed to fend off any tariffs ahead of Wednesday’s announcement.
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He promised any decisions “will be guided only by our national interest, in the interests of our economy, in the interests of businesses around this table, in the interests of putting money in the pockets of working people”.
Image: Sir Keir Starmer hosted business leaders in Downing Street on Thursday morning. Pic: Simon Dawson/No 10 Downing Street
“Clearly, there will be an economic impact from the decisions the US has taken, both here and globally,” he told the business leaders.
“But I want to be crystal clear: we are prepared, indeed one of the great strengths of this nation is our ability to keep a cool head.”
Business Secretary Jonathan Reynolds told the Commons on Thursday the government is considering retaliatory measures and requested British businesses let him know what the tariff implications will be for them.
An “indicative list of potential products” that could be targeted was later published, with 8,364 categories covering about 27% of UK imports from the US.
Earlier, Mr Reynolds told Wilfred Frost on Sky News Breakfast his “job is not done” when it comes to negotiating a trade deal
Mr Reynolds refused to say if the tariffs might cause a global recession and said the UK has safeguards in place to ensure it is not flooded with goods that would have gone to other countries.
“We’ll take any powers we need to protect the British people and the British economy from that,” he said.
“What we have directly within our power, alongside that is, of course, the ability to negotiate a better deal in the national interest for the UK. That’s been our approach to date and we’ll continue with that.”
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Moment Trump unveils tariffs chart
UK will be template for other nations’ deals
The business secretary also suggested if the UK is successful in negotiating a deal with the US “there’ll be a template there” for other countries to “resolve some of these issues”.
He reiterated statements he and the PM have made over the past few days as he said: “America is a friend, America’s our principal ally.
“Our relationship is an incredibly strong economic one, but also a security one, a political one as well.”
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6:39
Sky’s Ed Conway examines how economies across the world are impacted by tariffs
Government ‘very slow’ to start talks
Conservative shadow home secretary Chris Philp told Sky News the government had been “very slow” to start negotiating a free trade agreement with the US, and they should have started when Mr Trump was elected in November, even though he did not get sworn in until the end of January.
He said the UK being hit by a lower tariff than the EU was “one of the benefits of Brexit”.
However, he said the 25% tariff on car exports to the US is “very, very serious” and the global impact is “bad news for our economy”.
Relief in Westminster – but concessions to Trump to come
It has been quite a rollercoaster for the government, where they went from the hope that they could avoid tariffs, that they could get that economic deal, to the realisation that was not going to happen, and then the anticipation of how hard would the UK be hit.
In Westminster tonight, there is actual relief because the UK is going to have a 10% baseline tariff – but that is the least onerous of all the tariffs we saw President Trump announce.
He held up a chart of the worst offenders, and the UK was well at the bottom of that list.
No 10 sources were telling me as President Trump was in the Rose Garden that while no tariffs are good, and it’s not what they want, the fact the UK has tariffs that are lower than others vindicates their approach.
They say it’s important because the difference between a 20% tariff and a 10% tariff is thousands of jobs.
Where to next? No 10 says it will “keep negotiating, keep cool and calm”, and reiterated Sir Keir Starmer’s desire to “negotiate a sustainable trade deal”.
“Of course want to get tariffs lowered. Tomorrow we will continue with that work,” a source added.
Another source said the 10% tariff shows that “the UK is in the friendlies club, as much as that is worth anything”.
Overnight, people will be number-crunching, trying to work out what it means for the UK. There is a 25% tariff on cars which could hit billions in UK exports, in addition to the blanket 10% tariff.
But despite this being lower than many other countries, GDP will take a hit, with forecasts being downgraded probably as we speak.
I think the government’s approach will be to not retaliate and try to speed up that economic deal in the hope that they can lower the tariffs even further.
There will be concessions. For example, the UK could lower the Digital Services Tax, which is imposed on the UK profits of tech giants. Will they loosen regulation on social media companies or agricultural products?
But for now, there is relief the UK has not been hit as hard as many others.
More than 400 pages of thousands of goods that could be affected by reciprocal tariffs against the US.
Everything from fresh domestic ducks to sea-going dredgers makes the cut; most symbolic, however, are iconic American items like jeans, motorcycles and whiskey.
Would Donald Trump stand for a levy on Levi’s? It’s not the first time this battle has played out.
At the time, the UK, then an EU member, followed suit.
But as the UK tries to carve its own path outside the bloc, vindicated by the baseline 10% tariffs imposed instead of the EU’s rate of 20%, the aim is to avoid retaliation.
The government want us to know “all options are on the table” – but that is not how they want this to play out.
“This is not a short-term tactical exercise,” the prime minister said this morning.
Despite the business secretary’s best efforts during his recent trip to Washington to try to secure a UK tariffs carveout, no deal was reached in time.
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How will tariffs hit working people?
Mr Trump wanted his big bang, board brandishing moment; carveouts for certain countries would have softened the impact of his speech.
But with 90-plus countries on the tariff billboard, how far along the queue is any UK deal?
And how much are we willing to give? Will the sensitive subject of chlorinated chicken be on the table? What of the agreement to cut taxes on big tech companies that Mr Trump wants?
Lots of questions. The day after the surreal night before is too soon to know all the answers, but this is about politics as much as it is about economics.
As the prime minister launched Labour’s local election campaign in Derbyshire today, he talked about potholes, high streets and school meals. Every question I heard was about tariffs.
Decisions made across the Atlantic are looming large. Tariffs may not directly sway many votes in the local elections, but the consequences for Rachel Reeves’s fiscal headroom and the amount of money she has to spend, or save, will have an impact before too long.
A workman saved a seven-year-old boy from a burning car in the aftermath of a deadly crash caused by a suicidal ex-pilot, an inquest has heard.
The schoolboy’s rescue came following the collision on the M6, which killed former RAF man Richard Woods and four others, in October last year.
Last week a coroner ruled that Woods, 40, took his own life by deliberately driving his Skoda the wrong way down the motorway while drunk and hitting a Toyota Yaris head-on.
The driver of the Toyota, Jaroslaw Rossa, 42, was also killed, along with his two sons, Filip, 15, and Dominic, seven, and his partner Jade McEnroe, 33.
Cockermouth Coroner’s Court heard on Thursday that Ms McEnroe’s son was also in the car but survived after workman Gavin Walsh came to his rescue at the scene, which was near Tebay services in Cumbria.
In a statement to the inquest, Mr Walsh said he was a passenger in a transit van travelling to Scotland when he witnessed the crash.
He jumped out of the vehicle and used a jack to smash the rear windscreen of the Toyota and pulled the boy out of the burning vehicle.
Mr Walsh said: “We really did try, I can assure everyone we did our best. We only had minimal time.
“I saved a life that day and I hope never to witness anything like that again.”
He added that he has never stopped thinking about the boy, and said: “I hope we will meet again one day and I will give you a massive hug.”
At the time, the family were returning to Glasgow from a trip to Legoland in Windsor, Berkshire.
The inquest heard that Wood, who was travelling at a speed of at least 65mph, would have been charged with manslaughter had he survived.
Recording conclusions of unlawful killing, Cumbria assistant coroner Margaret Taylor said: “I found that Jaroslaw, Jade, Filip and Dominic died as a consequence of the unlawful acts of another driver.”
The inquest heard how Mr Woods, from Cambridgeshire, had served a distinguished 14-year career in the RAF and was a flight instructor for BAE Systems at the time of his death.
Image: Jade McEnroe. Pic: Cumbria Constabulary
Image: Dominic and Filip. Pic: Cumbria Constabulary
In Ms Taylor’s record of inquest, Mr Woods was said to have been experiencing “a number of stressors in his life” and had a “history of harmful use of alcohol”.
Following the crash, he was found to be nearly four times over the legal drink-drive limit and a two-thirds empty bottle of gin was found in his car.
On the day of his death, concerns had been raised over his behaviour at a work conference near Preston in Lancashire.
Mr Woods failed to return to his seat after lunch and was later spotted driving erratically and swerving across three northbound carriageway lanes on the M6.
After pulling onto the hard shoulder, he then proceeded to U-turn and drove southward on lane three.
Image: Filip, Dominic and Jaroslaw Rossa. Pic: Cumbria Constabulary
Detective Sergeant Deborah Story, from Cumbria Police, told the inquest that Mr Woods would have been prosecuted on four counts of manslaughter had he lived.
She said hypothetical charges of murder were considered by detectives but not thought appropriate because of a lack of information that Mr Woods knew the family or anything that provided a link between them.
Ms McEnroe’s parents, Marie McEnroe and George McNellis, told the coroner they thought it was “murder”.
A statement from the mother of Filip and Dominic, and the ex-wife of Mr Rossa, Kamila, was read out at the inquest.
She said Mr Rossa, known as Jarek, was born in Poland where they became a couple and went on to have three boys.
He loved playing computer games and had “lots of friends”, she said, and worked at the Wagamama restaurant in Silverburn, Glasgow.
She said she was “devastated” over the deaths, adding: “Our lives will never be the same.
“I am heartbroken at the passing of my beloved angels Filip and Dominic.”
Marie McEnroe said her daughter, a spa therapist, had been in a relationship with Mr Rossa for about two-and-a-half years.
She said Jade had been a “brilliant mother” to her only child, was “really happy” with Mr Rossa and it was “lovely chaos” when all the boys were playing together.
Ms McEnroe added: “Life changed forever that day”.
Ms Taylor praised the “selfless acts of bravery” from those in the aftermath of the collision, including Mr Walsh, who she said went towards the burning car “without hesitation for his own safety”.
The coroner added: “Without his swift response, Jade’s child would also have perished.”
Addressing the bereaved family members, she said: “Your loss is unimaginable but you have conducted yourself with dignity and I thank you for that. I wish you strength for the future.”
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.