Apple Scraps Its EV Plans and Google Tries to Fix Gemini | Bloomberg Technology

Apple's EV Project and AI Focus

• Apple scrapped its electric vehicle (EV) project after a decade of development, shifting its focus to artificial intelligence (AI).
• The company's CEO, Tim Cook, previously described the project as the "mother of all AI projects," highlighting its complexity and potential.
• Apple's decision resulted in layoffs for many of the 2000 employees working on the project, with some being reassigned to other AI initiatives within the company.
• Apple's car project aimed to capture higher margins and revenue from software services and autonomous technology.

Electric Vehicle Market and Competition

• Apple's withdrawal from the EV race could benefit Tesla, as it reduces direct competition and reinforces the high barriers to entry and success in the industry.
• The increasing adoption of EVs, with an expected 11% increase in sales in 2023 and over 40% in 2024, drives the need for automakers to focus on software services for better economics and revenue opportunities.

Legal and Regulatory Issues

• Apple is facing allegations of imposing software and hardware limitations on iPhones and iPads, hindering rivals' competition. The Justice Department is considering filing an antitrust suit against Apple in the coming weeks.
• Senator Elizabeth Warren emphasizes the need for crypto regulation to ensure that the industry follows the same set of rules as other financial institutions.

AI Revolution and Technology Stocks

• AI investments are pouring in, with companies realizing the potential of AI to increase productivity, decrease costs, and improve profit margins.
• NVIDIA remains a key player in the AI revolution as the hardware provider of the underlying technology.
• Global technology stocks are trading at valuations lower than their 2000s peak levels, making them relatively attractive from a historical perspective.
• AI adoption is not limited to specific sectors, and companies across various industries can benefit from incorporating AI into their products and services.

Google's Bard AI Chatbot Issues

• Google's Bard AI chatbot faced criticism for providing inaccurate and biased responses, leading to concerns about the reliability and potential damage to the brand.
• Google is working to rectify the issues by testing and weeding out problematic cases, but the underlying technology may have fundamental flaws that require more than just band-aid measures.
• The overcorrection in Bard's responses may be a result of prompt engineering aimed at addressing previous shortcomings in other AI generators.
• Users are unaware of the behind-the-scenes technical adjustments, leading to unintended consequences such as preventing the display of images of white people.
• Companies feel a sense of urgency to deploy AI products, even if they are not fully developed or reliable.

Gaming Industry Layoffs and Trends

• Deftly announced layoffs of 900 employees in its gaming division and the shutdown of PlayStation London, bringing the total number of game workers who lost their jobs to 6000.
• The gaming industry is experiencing belt-tightening measures due to the rising cost of capital, with companies like Microsoft Gaming, Unity, Riot, and others implementing layoffs.
• Generative AI is seen as a long-term tool to accelerate gains in the gaming industry, but there is a lack of exciting titles or trends to drive the spending cycle in the short term.
• Epic and Fortnite, with their huge announcements and Disney investment, are expected to see a lot of titles from those regions, while the delay of Grand Theft Auto to 2025 has disappointed many.

San Francisco's AI Hub and Commercial Real Estate

• San Francisco has positioned itself as a hub for AI, with the Hayes Valley neighborhood becoming a metaphor for the city's growing AI industry.
• Tech luminaries believe that the AI revolution is as big or bigger than previous technological advancements, with the potential to transform all industries simultaneously.
• The commercial real estate market in San Francisco is experiencing a downturn, with many buildings completely empty due to the shift towards remote work.

Fintech and Venture Capital

• VC-backed car company saw a reduction in losses in 2023.
• Fintech buy now, pay later firm in Europe is preparing for one of the biggest IPOs of the year.
• The company briefly moved into profit in the previous three months and is targeting further expansion in the United States, its biggest market.
• A Pittsburgh-based venture firm announced the close of a $50 million all-girl fund to back startups led by diverse founders.
• Despite the attention, $50 million is considered a small fund, reflecting the challenges faced by Black VCs in raising capital.
• Venture funding for Black-founded startups in the U.S. declined to $700 million in 2022, the lowest in a long time.

Klaviyo's Q4 Results and AI Focus

• The CEO of Klaviyo, Andrew, joins the show to discuss the company's