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Figma CEO on failed Adobe deal, startup landscape, big redesign with AI

As design firm Figma rolls out its first major AI upgrade for its platform, CEO and co-founder Dylan Field is taking no chances with customers amid steep AI adoption and demand curves and consumer hype. Figma is paying the cost of the AI upgrade for now instead of attempting to charge customers.

“We’re gonna eat the cost for 2024, because we don’t know how people are going to use the features yet. We don’t know how many of you will care, we don’t know how good they get,” Field said in an interview with CNBC’s Deirdre Bosa on Thursday speaking from the company’s Config conference. “Watch what the usage is in the beta, see what the costs are, and then you can go from there in terms of figuring out where pricing should be.” 

Figma’s UI3 redesign, released in limited beta on June 26 with a waitlist for additional users, includes a new toolbox called “Figma AI.”

Roughly six months after antitrust scrutiny forced Adobe to call off its acquisition of Figma, the redesign that widely integrates AI functionality is another competitive wedge in a battle with Adobe and the other highly valued design startup, Canva, which has been moving more into the enterprise market, with a valuation around $25 million.

Canva ranked No. 6 on this year’s CNBC Disruptor 50 list, while Figma ranked No. 26.

The fast growth of Figma’s all-in-one product design functions accessed over a browser has become competitive with Adobe’s lineup. This core innovation by Figma, akin to how Google Docs are shared and revised, takes the place of designers working in silos on desktop apps while struggling to keep track of various file versions. Canva, known for its easy-to-use software tools, continues to scale up, going after business accounts, integrating AI, and competing more aggressively with Adobe.

In a blog post this week, Figma stressed a focus on technology that meets user needs what users need, rather than tossing out trendy ideas, including AI implementations, like chat box functions. “There’s a risk of these features feeling tacked on and distracting from what matters,” a group of top executives at the company wrote.

“What we care about is making sure we’re not just sprinkling AI fairy dust on top but rather really baking AI functionality into the product in order to make a designer’s life better,” Field told CNBC. 

More coverage of the 2024 CNBC Disruptor 50

“It definitely feels like a race to me,” Field said, referencing the AI model industry, whose customers include web companies rapidly adopting AI features. Adoption of the most consumer-desired AI features to beat out similar companies for market share may also be a race, he said. Figma is feeling the AI heat.

“It’s all about, as an individual company, how do we build for our audience, which is people making products,” Field said. 

In June, Adobe shares surged the most since the Covid bull market of 2020 after better-than-expected financial results and the integration of AI into its product, Firefly, and its Enterprise business platform.

“The only thing constant is change,” Field told CNBC. As the large language models from Amazon and Microsoft-backed OpenAI, among others including Meta, get faster, “prices are decreasing,” he added.  

Figma’s UI3 incorporates various generative AI features to streamline and standardize creative processes from page and app ideation through execution. Typing in directives for a page can generate aesthetics and prompt design ideas. It also streamlined design for Figjam, its original AI-powered workspace that generates agendas and allows for web design teamwork. A new product called “Figma Slides” is a potential competitor to Google Slides and Canva. Figma’s design tools are embedded in enterprise offerings from companies including Google and Oracle.  

The AI competition is another step on the path to a potential IPO for Figma after the thwarted Adobe deal. In May, Figma announced a tender offer to allow current and former employees to sell shares at a $12.5 billion valuation, with the valuation up 25% from a 2021 fundraising but well below Adobe’s $20 billion acquisition offer. Canva also recently completed a transaction to allow early employees and investors to cash out at a $26 billion valuation — well below its peak private value of $40 billion. Like Figma, it’s also a highly anticipated IPO candidate.

“Either it’s M&A or IPO and we tried one of those, so you can probably guess as to the one that will be in our future,” Field said. 

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Amazon to gain creative control of James Bond franchise from Broccoli family

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Amazon to gain creative control of James Bond franchise from Broccoli family

Daniel Craig stars as James Bond in “No Time To Die.”

Source: MGM

Amazon is set to take creative control over the lucrative James Bond movie franchise from the Broccoli family, the company announced Thursday.

The James Bond films have long been produced by Michael Wilson and Barbara Broccoli, who inherited the control from their father Albert “Cubby” Broccoli. Wilson and Broccoli will now give creative control to MGM Studios, which Amazon acquired for $8.45 billion in 2021.

Amazon gained distribution rights to the Bond franchise after the MGM acquisition, but not creative control.

As part of the deal, Amazon’s MGM Studios, Wilson and Broccoli formed a new joint venture to house the Bond intellectual property rights, and they will remain co-owners of the franchise.

“We are grateful to the late Albert R. Broccoli and Harry Saltzman for bringing James Bond to movie theatres around the world, and to Michael G. Wilson and Barbara Broccoli for their unyielding dedication and their role in continuing the legacy of the franchise that is cherished by legions of fans worldwide,” said Mike Hopkins, Amazon’s head of Prime Video and MGM Studios, in a statement. “We are honored to continue this treasured heritage, and look forward to ushering in the next phase of the legendary 007 for audiences around the world.”

Wilson and Broccoli said in a release that they are both stepping back from producing the Bond films to focus on other projects.

“Barbara and I agree, it is time for our trusted partner, Amazon MGM Studios, to lead James Bond into the future,” Wilson said.

In a nod to the deal, Amazon founder and Executive Chairman Jeff Bezos wrote in a post on X, “Who’d you pick as the next Bond?”

The Bond film franchise, which spans more than 60 years, is one of the highest-grossing series in history.

The valuable IP stands to be a boon for Amazon’s sprawling media and entertainment business, which includes the Prime Video streaming service. Prime Video is one of the key perks of Amazon Prime, the company’s mainstay subscription service that costs $139 a year. As of 2021, the company said it had more than 200 million Prime subscribers worldwide.

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OpenAI tops 400 million users despite DeepSeek’s emergence

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OpenAI tops 400 million users despite DeepSeek's emergence

Brad Lightcap of OpenAI.

Courtesy: OpenAI

OpenAI appears to be growing quickly despite increasing competition. 

The San Francisco-based tech company had 400 million weekly active users as of February, up 33% from 300 million in December, the company’s chief operating officer, Brad Lightcap, told CNBC. These numbers have not been previously reported.

Lightcap pointed to the “natural progression” of ChatGPT as it becomes more useful and familiar to a broader group of people.

“People hear about it through word of mouth. They see the utility of it. They see their friends using it,” Lightcap said in an interview, adding that it takes time for individuals to find use cases that resonate. “There’s an overall effect of people really wanting these tools, and seeing that these tools are really valuable.”

OpenAI is seeing that spill over to its growing enterprise business. The company now has 2 million paying enterprise users, roughly doubling from September, said Lightcap, pointing out that often employees will use ChatGPT personally and suggest to their companies that they implement the tool. 

“We get a lot of benefits, and a tail wind from the organic consumer adoption where people already have familiarity with the product,” he said. “There’s really healthy growth, on a different curve.”

Developer traffic has also doubled in the past six months, quintupling for the company’s “reasoning” model o3, according to Lightcap. Developers use OpenAI to integrate the technology into their own applications. OpenAI counts Uber, Morgan Stanley, Moderna and T-Mobile among some of its largest enterprise customers.

Lightcap likened this usage to cloud services, which Amazon Web Services pioneered two decades ago. While the consumer business may grow faster since people can adopt it at will, enterprise is in the “process of building up,” he said. 

“There’s a buying cycle there, and a learning process that goes into scaling an enterprise business,” Lightcap said. “AI is going to be like cloud services. It’s going to be something that you can’t run a business that ultimately is not really running on these very powerful models underneath the surface.”

The DeepSeek effect

OpenAI’s growth comes amid new competition from Chinese competitor DeepSeek, which roiled tech markets in January as investors feared it would hamper future profitability of U.S. artificial intelligence companies and their dominance. Megacap tech companies were hit especially hard. Nvidia lost 17% on the Monday DeepSeek made waves, wiping off almost $600 billion in market value.

Later that week, OpenAI accused DeepSeek of improperly harvesting its models in a technique known as distillation. Lightcap said the new competition hasn’t changed the way OpenAI thinks about open source, their product road map or mega-spending plans.

“DeepSeek is a testament to how much AI is like entered the public consciousness in the mainstream — it would have been unfathomable two years ago,” he said. “It’s a moment that shows how powerful these models are and how much people really care.”

Besides DeepSeek’s emergence, OpenAI has also been dealing with a tense time on the legal front. 

Billionaire Elon Musk, a company co-founder, has sued OpenAI for breach of contract as it attempts to convert into a for-profit. Microsoft has poured billions into the company while SoftBank is close to finalizing a $40 billion investment that could value the company at close to $300 billion, according to sources familiar with the deal.

Musk and a group of investors bid to buy the nonprofit’s assets for $97.4 billion earlier this month. In a letter to Musk’s attorney, OpenAI’s lawyer said the company’s board determined that Musk’s “much-publicized ‘bid’ is in fact not a bid at all.” OpenAI Chairman Bret Taylor said in a statement that the company “is not for sale.”

“The numbers tell the story,” Lightcap said. “We try to be very transparent about where we stand on all of this. (Musk) is a competitor. He’s competing. It’s an unorthodox way of competing.”

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Chinese smartphone firm Oppo launches slim $1,870 folding phone to rival Samsung, Huawei

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Chinese smartphone firm Oppo launches slim ,870 folding phone to rival Samsung, Huawei

Oppo’s new Find N5 folding smartphone on display at a press briefing in London.

Ryan Browne | CNBC

Chinese smartphone firm Oppo has unveiled its new flagship folding phone Thursday, touting a slimmer body and artificial intelligence-focused features in a bid to compete with high-end foldable devices from the likes of Samsung and Huawei.

The company’s Find N5 phone that can fold in half, will retail at a starting price of 2,499 Singapore dollars ($1,867.70).

When it’s folded shut, the Find N5 looks like a normal bar-shaped phone with a 6.62-inch display. The device can then be folded outward to show a larger, 8.12-inch tablet.

Most notably, the phone has an ultra-thin design. When closed, it measures 8.93 millimeters thick, while when opened out in tablet form, the Find N5 has a depth of 4.21 millimeters.

That’s slimmer than Samsung’s Galaxy Fold 6, which the South Korean tech giant released last year.

Inside the device is a razer-thin 5,600 milliampere-hour (mAh) battery that’s no bigger than a credit card. Oppo said the battery incorporates a silicon-carbon material, which enables high battery capacity despite its small size.

Oppo is hoping it can win business from the likes of Samsung and Chinese tech giant Huawei, both major smartphone players seeking to shake the market out of an innovation slowdown with flashy new models that can bend.

'Sea of sameness': Are smartphone makers out of ideas?

AI assistant features

Like many other smartphone makers, Oppo is investing more into artificial intelligence-focused features on the device.

The Oppo Find N5 has a triple-camera setup that includes a telephoto lens that can zoom in up to 30x thanks to assistance from an AI-powered image enhancement feature, dubbed AI Telescope Zoom.

It also comes with a personal AI assistant that can interpret and summarize documents, generate summaries of phone calls and translate video calls and other content displayed on the screen.

Addressing concerns around privacy, Oppo said that some data is processed directly on the device while other information is stored in the cloud. In international markets, Oppo is using Google as its AI and cloud computing technology partner.

Controlling a Mac with an Android phone

Oppo also talked up a new feature that enables users to connect their phone to a Mac computer. Using an app called O+ Connect, users can link the Find N5 to any Mac desktop machine and instantly transfer photos and other files between devices — so long as they’re connected to the same Wi-Fi network.

Users can also choose to remotely control a Mac from the Find N5. The Mac’s display can shut off and then reappear on the Find N5’s screen. The remote control feature only requires mobile internet or Wi-Fi to sync up a Mac device’s data with the Find N5 in real-time.

Huawei launches $3,660 trifold phone outside of China for the first time

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