Posts with «investment & company information» label

Discord's CEO and co-founder is stepping down

Discord CEO and co-founder Jason Citron has announced that he's stepping down from his leadership role at the chat app and being replaced by Humam Sakhnini, a former executive from Activision Blizzard. Citron will remain on Discord's board of directors, and fellow co-founder Stanislav Vishnevskiy will continue acting as the company's chief technology officer.

"From the very beginning, our mission has been about bringing people together around games," Citron said in a statement. "It’s a mission I’ve dedicated my career to, and I'm confident that passing the torch to Humam is the right evolution for Discord's future." While initially pitched as a way to talk to friend's before, during and after playing games, Discord has morphed into a much larger and more general social platform, serving "more than 200 million monthly active users worldwide," the company says.

There's an important financial context to Citron's move. The New York Times reported in March that Discord was meeting with investors to take the company public. Sakhnini has experience acting as a leader of a public company. He was also the President of King Digital — the creator of Candy Crush and other popular mobile games — after the company was acquired by Activision Blizzard. A veteran executive could be a natural fit to usher Discord to an IPO. Citron didn't deny the plan when GamesBeat asked if the company would go public: "As you can imagine, hiring someone like Humam is a step in that direction."

Just a few years ago, Discord was reportedly in talks to be acquired by Microsoft, which seemed like a natural fit alongside Xbox. The rumored $10 billion deal fell through, but both Xbox and PlayStation platforms got Discord integration.

This article originally appeared on Engadget at https://www.engadget.com/apps/discords-ceo-and-co-founder-is-stepping-down-181851778.html?src=rss

Intel may be preparing to lay off 20 percent of its staff

Intel is reportedly preparing to further reduce its headcount, this time by laying off more than 20 percent of its employees. It could announce a plan to do so as soon as this week. The struggling company had 108,900 employees at the end of last year, so it may be set to cut tens of thousands of jobs. According to a Bloomberg source, the aim of the downsizing is to streamline management operations and refocus Intel with an engineering-driven culture.

Last August, Intel said it would cut more than 15,000 jobs to reduce costs. In fact, the company, which has been slow to embrace the industry's shift toward artificial intelligence, has been significantly reducing its headcount since 2022 amid declining sales.

These latest purported layoffs would mark one of the first major restructuring measures since Lip-Bu Tan became CEO in March after the sudden departure of Pat Gelsinger. The company is set to report its quarterly earnings results on Thursday. Companies that are restructuring often announce layoffs around the time they release earnings reports.

Tan has also pledged to sell off assets that aren't core to Intel's goals as he tries to turn the business around. Last week, it emerged that Intel is selling off a majority stake in chipmaker Altera for $4.46 billion. That deal is expected to close later this year.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/intel-may-be-preparing-to-lay-off-20-percent-of-its-staff-161557058.html?src=rss

FTC launches an antitrust probe into Microsoft's deal with Inflection AI

Microsoft is under investigation by the Federal Trade Commission over its deal with Inflection AI, according to The Wall Street Journal. Back in March, the company hired almost all of Inflection AI's employees, including founders Karén Simonyan and Mustafa Suleyman, who was also a DeepMind cofounder. In addition, Microsoft paid Inflection AI $650 million to license its artificial intelligence technology. Now, the FTC wants to know whether the companies deliberately structured the deal to avoid being the subject of regulatory antitrust review. 

As The Journal notes, companies are required to report any acquisition that's valued at $119 million or more to federal antitrust agencies. The FTC or the Justice Department could then investigate whether the deal stifles competition in the industry and then sue to block the merger or the investment that it deems to be anti-competitive. When companies want to hire all the talent in another firm, they typically buy the other out in an "acquihire." But Microsoft didn't buy Inflection, which denied that the bigger company has any power over it. Ted Shelton, its new COO, told the publication that it still operates as an independent company under new leadership. 

The FTC has already sent out subpoenas to both Microsoft and Inflection, asking for relevant documents over the past two years. If it does determine that the companies entered into an agreement in a way that would give Microsoft control over the other while dodging regulatory review, then Microsoft could be fined, and the transaction could be suspended pending a more in-depth investigation. 

US federal agencies have been cracking down on monopolistic practices by the world's largest tech companies over the past few years. To be even more efficient in conducting antitrust investigations involving the current biggest players in artificial intelligence, the agencies have also just struck a deal on how they're dividing their responsibilities. The Justice Department will take the lead in investigations involving NVIDIA, while the FTC will take charge of antitrust probes involving Microsoft and OpenAI.

This article originally appeared on Engadget at https://www.engadget.com/ftc-launches-an-antitrust-probe-into-microsofts-deal-with-inflection-ai-130038896.html?src=rss

OpenAI's board allegedly learned about ChatGPT launch on Twitter

Helen Toner, one of OpenAI’s former board members who was responsible for firing CEO Sam Altman last year, revealed that the company’s board didn’t know about the launch of ChatGPT until it was released in November 2022. “[The] board was not informed in advance of that,” Toner said on Tuesday on a podcast called The Ted AI Show. “We learned about ChatGPT on Twitter.”

Toner’s comments came just two days after criticized the way OpenAI was governed in an Economist piece published on Sunday that she co-wrote with Tasha McCauley, another former OpenAI board member. This is the first time that Toner has spoken openly about the circumstances that led to Altman’s dramatic ouster from the company he co-founded in 2015, and his quick reinstatement following protests from employees.

In the podcast, Toner, who is current a director of strategy at the Centre for Security and Emerging Technology at Georgetown, said that Altman had made it hard for OpenAI’s board to do its job by withholding information, misrepresenting things, and, “in some cases outright lying to the board.” She added that Altman also hid the company’s ownership structure from the board. “Sam didn’t inform the board that he owned the OpenAI startup fund, even though he constantly was claiming to be an independent board member with no financial interest in the company,” Toner said. Altman’s actions “really damaged our ability to trust him,” she said, and by October 2023, the board was “already talking pretty seriously about whether we needed to fire him.”

She criticized Altman’s leadership on safety concerns around AI, saying that he often gave the board inaccurate information on the company’s safety processes, “meaning that it was basically impossible for the board to know how well those safety processes were working or what might need to change.”

When asked for comment, an OpenAI spokesperson referred Engadget to the statement the company provided to The TED AI Show. “We are disappointed that Ms. Toner continues to revisit these issues,” Bret Taylor, OpenAI’s current board chief and co-CEO of Salesforce told the podcast. An independent review of Altman’s firing, he added, “concluded that the prior board’s decision was not based on concerns regarding product safety or security, the pace of development, OpenAI’s finances, or its statements to investors, customers, or business partners.”

The exact reasons for Altman’s abrupt ouster last year were still unclear and have been a source of intense speculation in Silicon Valley. In March, Altman was reinstated to the board by a group of temporary board members which included Taylor, economist Larry Summers, OpenAI co-founder Greg Brockman, Instacart CEO and former Meta executive Fiji Simo, former Sony executive Nicole Seligman, and former CEO of the Bill and Melinda Gates Foundation Dr. Sue Desmond-Hellmann. In an independent investigation, law firm WilmerHale found that Toner’s decision to fire Altman along with the rest of OpenAI’s previous Board “was a consequence of a breakdown in the relationship and loss of trust between the prior Board and Mr. Altman.” WilmerHale also found that OpenAI’s previous board had fired Altman “abruptly” and without giving him a chance to respond to its concerns.

Toner’s revelations are the latest controversy that OpenAI, company that sparked off the modern AI revolution, has been involved in. Over the last few days, multiple safety researchers left the company, publicly criticizing its leadership on their way out. OpenAI also backtracked on non-disparagement agreements it had required departing employees to sign after a Vox investigation, and forced to explain itself after actor Scarlet Johansson accused the company of copying her voice for ChatGPT despite denying permission.

This article originally appeared on Engadget at https://www.engadget.com/openais-board-allegedly-learned-about-chatgpt-launch-on-twitter-235643014.html?src=rss

T-Mobile to acquire majority of US Cellular, further consolidating carrier market

T-Mobile will acquire the majority of US Cellular in a deal worth approximately $4.4 billion. This means that T-Mobile will own all of US Cellular’s stores, some of its spectrum assets and some of its customers. The deal includes a combination of cash and up to $2 billion of assumed debt, according to a press release by US Cellular. The companies expect to finalize the purchase by mid-2025, though the deal must attain regulatory approval.

All told, T-Mobile will walk away with around 30 percent of US Cellular’s wireless spectrum, which it hopes to use to improve coverage in rural areas and offer better connectivity to current US Cellular customers throughout the country. Current customers will be able to keep their plans or switch to a similar T-Mobile contract.

US Cellular will retain 70 percent of its wireless spectrum and towers. Additionally, it will lease space on around 2,100 additional towers to T-Mobile. "The decisions we announced today are in the best interests of our customers and our shareholders. T-Mobile is the right partner for our wireless operations," said Laurent Therivel, CEO of US Cellular.

This is just the latest consolidation move by T-Mobile. The company recently acquired the Ryan Reynolds-backed Mint Mobile, via the purchase of parent company Ka'ena Corporation for around $1.35 billion. T-Mobile also merged with Sprint back in 2020. It’s basically Pac-Man, but instead of dots it hoovers up smaller cellular carriers.

The Wall Street Journal recently reported that T-Mobile had teamed up with frenemy Verizon to “carve up” US Cellular’s wireless spectrum, but it looks like that deal has either fallen through or will be significantly delayed.

This article originally appeared on Engadget at https://www.engadget.com/t-mobile-to-acquire-majority-of-us-cellular-further-consolidating-carrier-market-152212548.html?src=rss

The UK passes its version of the EU's Digital Markets Act

The UK has passed a bill that's the country's version of the European Union's Digital Markets Act (DMA). Legislators fast-tracked the Digital Markets, Competition and Consumers (DMCC) Bill before parliament dissolves on May 30 ahead of a general election in July.

The overarching aim of the DMCC, which is set to become law once it receives Royal Assent, is to “regulate and increase competition in digital markets.” It will come into force later this year.

The bill is broadly similar to the DMA, which led to the EU designating several large tech companies' services and products as "gatekeepers" and imposing stricter rules on them. The DMCC grants the Digital Markets Unit (DMU), a division of the Competition and Markets Authority, the authority to label companies with “substantial and entrenched market power” and “a position of strategic significance” as having Strategic Market Status (SMS).

Among other things, SMS companies will have to adhere to codes of conduct as determined by the DMU. Those will be based on the foundations of fair trading, openness and trust and transparency. The DMU has a broad canvas for defining the conduct requirements for each business. If a company breaches its code of conduct, it faces a fine of up to 10 percent of its global revenue.

There have been suggestions that the likes of Meta and Google may be forced to pay UK news publishers for using their work in the likes of Google News (and perhaps even for AI products). Others have suggested that Apple may be required to allow sideloading and third-party app stores on iOS, as in the EU. Companies may also be prohibited from prioritizing their own products and services in search results. However, the specific requirements for each SMS haven't been detailed yet. 

The DMCC also has implications for things like subscriptions, junk fees, fake reviews, ticket resales, mergers, antitrust and consumer protection. For the first time, the CMA will have the power to impose a hefty fine if it determines a company has violated a consumer law — and it won't have to go through courts to do so. 

This article originally appeared on Engadget at https://www.engadget.com/the-uk-passes-its-version-of-the-eus-digital-markets-act-175642166.html?src=rss

Nintendo snaps up a studio known for its Switch ports

Nintendo is buying (PDF) Florida-based studio Shiver Entertainment from the Embracer Group, which is splitting up its rather messy gaming empire and is letting go of certain assets. Shiver was founded in 2012 and is mostly known for working with publishers and developers to port games to the Switch, including couple of Scribblenauts titles and Hogwarts Legacy. Nintendo will acquire the "boutique-sized studio" in full, making it a fully owned subsidiary that will continue working on Switch ports and developing software for multiple platforms. 

The Japanese gaming company isn't known for gobbling up small studios and developers. In its announcement of the deal, it said it's aiming "to secure high-level resources for porting and developing software titles" with this purchase. By buying Shiver, Nintendo is also showing that it's committed to the Switch platform, which will remain its primary business for years to come

As Nintendo Life notes, Nintendo may have decided to purchase Shiver to acquire its talent, as well. The studio's CEO, John Schappert, is an industry veteran who used to oversee Xbox Live, the Xbox platform software and Microsoft Game Studios. He also served as Chief Operating Officer at EA and at Zynga. Nintendo didn't say how much it's paying for the studio, but it doesn't sound like the purchase will make any considerable impact on its finances. "The Acquisition will have only a minor effect on Nintendo’s results for this fiscal year," the company wrote in its announcement. 

This article originally appeared on Engadget at https://www.engadget.com/nintendo-snaps-up-a-studio-known-for-its-switch-ports-100003358.html?src=rss

OpenAI co-founder and Chief Scientist Ilya Sutskever is leaving the company

Ilya Sutskever has announced on X, formerly known as Twitter, that he's leaving OpenAI almost a decade after he co-founded the company. He's confident that OpenAI "will build [artificial general intelligence] that is both safe and beneficial" under the leadership of CEO Sam Altman, President Greg Brockman and CTO Mira Murati, he continued. In his own post about Sutskever's departure, Altman called him "one of the greatest minds of our generation" and credited him for his work with the company. Jakub Pachocki, OpenAI's previous Director of Research who headed the development of GPT-4 and OpenAI Five, has taken Sutskever's role as Chief Scientist. 

After almost a decade, I have made the decision to leave OpenAI. The company’s trajectory has been nothing short of miraculous, and I’m confident that OpenAI will build AGI that is both safe and beneficial under the leadership of @sama, @gdb, @miramurati and now, under the…

— Ilya Sutskever (@ilyasut) May 14, 2024

While Sutskever and Altman praised each other in their farewell messages, the two were embroiled in the company's biggest scandal last year. In November, OpenAI's board of directors suddenly fired Altman and company President Greg Brockman. "[T]he board no longer has confidence in [Altman's] ability to continue leading OpenAI," the ChatGPT-maker announced back then. Sutskever, who was a board member, was involved in their dismissal and was the one who asked both Altman and Brockman to separate meetings where they were informed that they were being fired. According to reports that came out at the time, Altman and Sutskever had been butting heads when it came to how quickly OpenAI was developing and commercializing its generative AI technology. 

Both Altman and Brockman were reinstated just five days after they were fired, and the original board was disbanded and replaced with a new one. Shortly before that happened, Sutskever posted on X that he "deeply regre[tted his] participation in the board's actions" and that he will do everything he can "to reunite the company." He then stepped down from his role as a board member, and while he remained Chief Scientist, The New York Times says he never really returned to work. 

Sutskever shared that he's moving on to a new project that's "very personally meaningful" to him, though he has yet to share details about it. As for OpenAI, it recently unveiled GPT-4o, which it claims can recognize emotion and can process and generate output in text, audio and images.

Ilya and OpenAI are going to part ways. This is very sad to me; Ilya is easily one of the greatest minds of our generation, a guiding light of our field, and a dear friend. His brilliance and vision are well known; his warmth and compassion are less well known but no less…

— Sam Altman (@sama) May 14, 2024

This article originally appeared on Engadget at https://www.engadget.com/openai-co-founder-and-chief-scientist-ilya-sutskever-is-leaving-the-company-054650964.html?src=rss

Sony PlayStation will soon have two CEOs

Sony Interactive Entertainment (SEI) has announced a new leadership structure that puts two people in charge of different parts of its business. Hideaki Nishino, who is currently serving as the SVP for the Platform Experience Group, will become the CEO of SIE's Platform Business Group starting on June 1. On the same day, Hermen Hulst will take on the role of CEO for SIE's Studio Business Group after serving as SVP and Head of PlayStation Studios. 

The two executives are stepping into their roles after Jim Ryan decided to leave his seat as SEI's CEO in March. When he announced his departure, he said he was finding it "increasingly difficult" to juggle his home life in the UK and his job that's located in the US. Ryan helped establish the company's presence in Europe and oversaw the launch of the PlayStation 5 in the midst of the pandemic. Both Nishino and Hulst will report to interim CEO Hiroki Totoki, who will take a step back and continue his role as Chairman of SIE as as well as President, COO and CFO of Sony Group Corporation. 

Nishino currently leads the team that develops all the experiences and tech for PlayStation services and products. He'll continue being responsible for those, but he will also oversee the company's work with third-party publishers and developers. Nishino will be in charge of SIE's commercial operations, including sales and marketing for all PlayStation hardware, services and peripherals, as well. Meanwhile, Hulst has been heading efforts for content development across PlayStation consoles and PCs. He's also in charge of the development of video game adaptations for movies and TV, such as The Last of Us. In the future, he will be "responsible for the development, publishing, and business operations of SIE's first-party content."

This article originally appeared on Engadget at https://www.engadget.com/sony-playstation-will-soon-have-two-ceos-090041004.html?src=rss

Microsoft's web-based mobile game store opens in July

In a couple of months, you'll be able to get Microsoft's mobile games from its own store. Xbox President Sarah Bond has revealed at the Bloomberg Technology Summit that the company is launching a web-based store where you can download its mobile games and get add-ons or in-app purchases at a discount. Bond said the company has decided to launch a browser-based store instead of an app to make it "accessible across all devices, all countries, no matter what" so that you don't get "locked to a single ecosystem."

Microsoft will only host its own games to start with, which means it will feature a lot of titles from Activision Blizzard. If you'll recall, it snapped up the gaming developer and publisher in a $70 billion deal that closed last year. You'll most likely find Candy Crush Saga, which has apparently generated $20 billion in revenue since it launched in 2012, and Call of Duty's mobile games in the first batch of titles available for download. Bond said that Minecraft may also be one of the first games you can get. 

An Xbox spokesperson told Bloomberg that this is "just the first step in [the company's] journey to building a trusted app store with its roots in gaming." Microsoft plans to open the app store to third-party publishers in the future, though it didn't share a timeline for that goal. 

The company first announced its intention to launch a gaming store for Android and iOS devices last year shortly before rules under the EU's Digital Markets Act became applicable. To comply with DMA rules, Apple and Google have to allow third-party app stores to be accessible on their platforms and to offer alternative billing systems for purchases. They're also compelled to allow app sideloading, which will be a massive change for Apple, a company known for its "walled garden" approach to business. 

Operators of third-party app stores will get to avoid some of the fees Google and Apple charge, but they'd still have to pay the companies for bypassing their mobile platforms' official stores. Both tech giants have already outlined how they're changing things up to comply with the DMA regulations. The companies' rivals found the changes they're making insufficient, however, prompting the European Commission to start investigating their compliance plans. 

This article originally appeared on Engadget at https://www.engadget.com/microsofts-web-based-mobile-game-store-opens-in-july-090044359.html?src=rss