Throughout 2023, it felt like the drama never let up. From Elon Musk’s nonstop shenanigans to the constant launches in the generative AI race, the last twelve months was packed with news. Thankfully, it wasn’t all bad, and this year saw more winners than before. There were clear frontrunners, like Threads and AI, but we also saw surprises like Apple’s Vision Pro headset and the iPhone maker finally embracing several open standards. Of all the things that happened this year, here’s the Engadget team’s list of tech’s biggest winners in 2023.

Threads

If you had told me a year ago that Mark Zuckerberg would use the Elon Musk-induced chaos at Twitter to his and Meta’s advantage, I wouldn't have been surprised. If, however, you had told me that Meta’s slapdash effort to build a standalone Twitter clone based on Instagram would emerge as the most viable and popular alternative, I probably would have laughed.

But, if 2023 taught us anything, it’s that Elon Musk was more adept at taking Twitter X to lower lows than we could have possibly imagined. And while we’ll likely never see an actual cage match between Zuck and Musk, it’s impossible to ignore just how much Threads has benefitted from Musk’s self-inflicted wounds.

After an initial surge and drop-off in interest, Threads is back at 100 million monthly users. It was the fourth-most downloaded app of the year, according to Apple, despite a mid-year launch and months without any EU availability. The app is also beginning its long-awaited experiment with federation, which will eventually make its content interoperable with Mastodon.

Threads has, of course, benefitted from Meta’s vast engineering resources, as well as the company’s willingness to engage in good old-fashioned growth-hacking. And there are still valid concerns about Meta’s content moderation practices and the implications for allowing the Facebook owner to control yet another major social platform.

But the fact that Threads was able to grow so quickly despite all that shows just how desperate people were for an alternative. Threads may not have been the most advanced or most interesting of the wave of alternatives, but it’s been able to use its ties to Meta and Instagram to attract the most interest. And, right now, it has something X doesn’t: a whole lot of momentum. — Karissa Bell, Senior reporter

Generative AI

We capped off 2022 with the rising popularity of ChatGPT, OpenAI’s remarkably powerful generative AI chatbot. While the idea of having a conversation with a chatbot wasn’t exactly new, ChatGPT leveraged a large language model (LLM) to achieve natural, almost human-like responses, as well as the ability to craft readable text or pull up information on demand. It was a sign that AI was going to be an important topic in 2023 — something Microsoft proved when it launched Bing’s AI Chat in February, which was powered by OpenAI’s next-generation GPT 4 model. And so the AI wars began.

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Google rushed to announce its Bard chatbot to pre-empt Microsoft’s Bing Chat launch, but it demonstrated the limitations of generative AI when it confidently answered a question about the James Webb telescope incorrectly. That led to an immediate 8 percent drop in Google’s stock, and it made the company seem like it was just chasing Microsoft’s and OpenAI’s accomplishments with Bing Chat and ChatGPT. (Bard was originally powered by Google’s LaMDA LLM, which had been in development since 2021.)

Bing Chat was just the start for Microsoft: It also launched AI integration in Microsoft Edge through a “Copilot” sidebar, something that also ended up arriving in Microsoft 365 apps, Windows 11 and Windows 10. Google, meanwhile, announced Bard integration for its Assistant and implemented a slew of AI-powered features into Gmail, Docs, Sheets, Meet, Chat, Slides, as well as the new Pixel 8 and Pixel 8 Pro. Heading into 2024, we can look forward to Google’s GPT 4 competitor, Gemini, and Microsoft also announced that its Copilots are getting upgraded with GPT-4.

Outside of Microsoft and Google, AI ended up being the buzzword adopted by much of the tech world throughout 2023. (How quickly we forgot about Web 3.0, crypto and the metaverse.) But while the relentless hype cycle was inevitable, we also saw text-to-image generation tools like OpenAI’s Dall-E 3 become even more powerful, evolving beyond the creepy multi-fingered imagery it was famous for. AI is starting to influence the the world outside of tech as well: It was one of the most prominent concerns for WGA members during their 148-day long strike, and many people were fooled by the famous image of the Pope wearing a puffy Balenciaga coat, which was generated by Midjourney.

There’s still plenty we don’t know about how AI will influence our lives, though researchers like Timnit Gebru, founder of the Distributed AI Research Institute, and Margaret Mitchell are continually raising the alarm about ethical AI concerns. Much of the AI world seems to be following Facebook’s former philosophy of “move fast and break things” — expect to see more drama around artificial intelligence like OpenAI CEO Sam Altman’s surprise firing and re-hiring. It normally takes a few years for a founder to get ousted from their company, like Steve Jobs and Twitter’s Jack Dorsey. Devindra Hardawar, Senior reporter

Photo by Cherlynn Low / Engadget

Apple meets RCS, USB-C and Qi 2

In 2023, it almost felt like hell froze over. Apple, notorious for its walled garden, not only introduced new phones with USB-C charging ports this year, but also announced it would support the RCS messaging standard. This happened after months of public badgering from Google (and its execs) and multiple reports calling out the green-bubble stigma. Apple appeared to relent, seemingly having come to terms with previous misgivings.

Though Apple’s declaration is a step in the right direction and brings better security and multimedia support for those on iPhones texting people on Androids, the bubble-color divide is far from dissolved. When the company does adopt the messaging standard, it may not change the way texts are presented. iMessage still has many features that RCS lacks, particularly those introduced in iOS 17 this year like Voice Memo transcripts and Check Ins.

Of course, it’s not like Apple is welcoming all these interoperable standards with open arms. Its adoption of USB-C is clearly a reaction to the EU’s mandate that all new devices sold next year charge with the same standard. And even after announcing RCS support, the company still worked hard to plug the workarounds that enabled Android platforms like Beeper and Sunbird to bring some semblance of iMessage support to non-iOS devices.

But when you consider all the changes made this year, plus the fact that iPhone 15s are among the first devices that work with the new Qi 2 wireless charging protocol, it’s hard to ignore the momentum. It doesn’t feel quite right to label Apple a winner because of all this, but with the number of people that are now better served and supported by the company’s devices, it won’t be surprising to see a fair amount of goodwill flow its way. — Cherlynn Low, Deputy editor

Photo by: Sam Rutherford / Engadget

Foldable phones

Since 2019, Samsung has had a virtual monopoly on big fancy foldable phones. But in 2023, we got not one but two new challengers in the Pixel Fold and OnePlus Open. And while neither can claim total superiority, they’ve brought some interesting innovations to the category.

With its super thin design and wider front display, the Pixel Fold makes it easy to use all of your apps without ever needing to open the device. So when do unfold it, you appreciate its 6.7-inch flexible screen even more. And unlike its rivals, Google didn’t cut corners with its cameras, as the Pixel Fold offers better image quality than pretty much any other handset (foldable or otherwise) aside from its recent sibling, the Pixel 8 Pro.

Meanwhile with the Open, OnePlus created a clever card-based multitasking system that makes it super easy to flip between apps. The Open is also thinner and lighter than Samsung’s Galaxy Z Fold 5. And while it’s still pretty expensive, thanks to a nifty deal that brings its price down to $1,500 with the trade-in of any phone, OnePlus’ first foldable is helping lower the barrier to entry for devices even further.

So in a year when the pace of Samsung’s innovation felt like it was starting to stagnate, two new rivals brought increased competition to the category, which is a win for anyone who’s ever thought about buying a big foldable phone. — Sam Rutherford, Senior reporter

Apple Vision Pro

Apple didn’t make the first MP3 player, and it certainly didn’t make the first smartphone. But the iPod and iPhone managed to out-innovate existing products and reorient the entire technology world around their existence. The Vision Pro is a similar play, albeit one that isn’t immediately meant for everyone. Companies like Oculus (now Meta) and HTC Vive have been pursuing consumer VR for almost a decade, but the Vision Pro takes an even bolder leap forward. Imagine having your apps floating above your desk, or having a video pinned to a wall of your room, or seamlessly reliving your memories captured in 3D spatial videos. And yes, it can also deliver immersive virtual experiences when it needs to.

As is true for many VR solutions, it’s hard to convey the magnitude of Apple’s accomplishment with the Vision Pro in words, screenshots or promo trailers. If you’re not terribly excited about spending $3,499 on Apple’s unproven goggles, I can’t blame you. But after spending some time with the Vision Pro during its launch event, I’m convinced it’s something special. Its screens are far sharper than any VR headset I’ve seen, its onboard cameras deliver a better mixed reality experience and the simple gestures Apple has developed for navigating its interface are wonderfully intuitive.

While the Vision Pro has its obvious issues — it’s priced for developers and early adopters, not average consumers; it’s still a chunky device that many people won’t want to wear — it fundamentally reshapes the way we’ve been thinking of mixed reality. It’s not just a gadget for VR games, nor is it something purely geared towards business purposes like the Hololens 2 and Magic Leap 2. It’s something truly new, and it could end up paving the way towards our spatial computing future. — Devindra Hardawar

Engadget

Gaming handhelds

Handheld gaming PCs combine everything you love about classic portables like the Gameboy Advance or the PSP with big performance (and admittedly much larger builds) plus the freedom to play practically any title you can think of. And in 2023, we saw an explosion of compelling devices with a range of designs: from big chunky units with detachable controllers like Lenovo’s Legion Go to a major revamp for the Steam Deck featuring a new OLED display. Meanwhile, systems like the ASUS ROG Ally offer top-notch specs in a sleek design. And this is before you mention smaller manufacturers like Ayaneo, GPD and others that have put their own twist on the category. But the best part is that most of these cost half the price of a typical gaming laptop, so if all you care about is being able to game from… well anywhere, 2023 has given us a wealth of options. — Sam Rutherford

Neuralink

Elon Musk’s Neuralink brain-computer interface startup came into 2023 against the figurative ropes. The FDA had denied its 2022 petition to begin human trials of its implantable prosthetic over concerns that prototypes of the device had killed a slew of porcine test subjects; rival BCI maker Synchron had already beaten it to market (having having successfully installed their device in a human patient that July) and the USDA had launched an investigation into animal cruelty claims against the company. Musk’s promise of beginning human trials “within six months,” made during a November “show-and-tell’ event appeared increasingly unlikely.

Heading into 2024, Neuralink is in a much better place. The USDA conducted a "focused" inspection of the company’s facilities but did not find any compliance breaches beyond a single issue in 2019 that Neuralink self-reported, per a report obtained by Reuters. That investigation came in response to a complaint filed by the Physicians Committee of Responsible Medicine, an animal welfare advocacy group, that alleged Neuralink and research partner UC Davis had caused the needless suffering and death of simian test subjects between 2017 and 2020. Neuralink may have placated that investigation, however, the USDA’s Office of Inspector General (OIG) has since launched its own independent investigation at the behest of federal prosecutors into the allegations as such actions might violate the Animal Welfare Act. That process remains ongoing.

In May, Neuralink received the best news of its year: the FDA had cleared the company to begin early-stage human trials, after it had satisfactorily address the agency’s previous issues. "The agency’s major safety concerns involved the device’s lithium battery; the potential for the implant’s tiny wires to migrate to other areas of the brain; and questions over whether and how the device can be removed without damaging brain tissue," current and former Neuralink employees told Reuters in March.

In September, nearly a year after Musk’s six-month promise, the Precise Robotically Implanted Brain-Computer Interface (PRIME if you really squint) study opened for subject volunteers. The study "aims to evaluate the safety of our implant (N1) and surgical robot (R1) and assess the initial functionality of our BCI for enabling people with paralysis to control external devices with their thoughts." Whether patients turn out to have the devices implanted won’t be revealed until the trials are complete but given Musk’s increasingly erratic behavior and irrational diatribes, embrace of antisemitism and promotion of far-right hate speech — the fact that he ran Twitter into the ground in barely a year — could make selling people on the finer points of their cranial surgery an impossible task. — Andrew Tarantola, Senior reporter

The New York Times is suing OpenAI and Microsoft for using published news articles to train its artificial intelligence chatbots without an agreement that compensates it for its intellectual property. The lawsuit, which was filed in a Federal District Court in Manhattan, marks the first time a major news organization has pursued the ChatGPT developers for copyright infringement. The NYT did not specify how much it seeks in payout from the companies but that “this action seeks to hold them responsible for the billions of dollars in statutory and actual damages.”

The NYT claims that OpenAI and Microsoft, the makers of Chat GPT and Copilot, “seek to free-ride on The Times’s massive investment in its journalism” without having any licensing agreements. In one part of the complaint, the NYT highlights that its domain (www.nytimes.com) was the most used proprietary source mined for content to train GPT-3.

It alleges more than 66 million records, ranging from breaking news articles to op-eds, published across the NYT websites and other affiliated brands were used to train the AI models. The lawsuit alleges that the defendants in the case have used “almost a century’s worth of copyrighted content,” causing significant harm to the Times’ bottom line. The NYT also says that OpenAI and Microsoft’s products can “generate output that recites Times content verbatim, closely summarizes it, and mimics its expressive style.” This mirrors other complaints from comedians and authors like Sarah Silverman and Julian Sancton who claim OpenAI has profited off their works.

If the lawsuit makes any headway, it could create opportunities for other publishers to pursue similar legal action and make training AI models for commercial purposes more costly. Competitors in the space, like CNN and BBC News have already tried limiting what data AI web crawlers can scrape for training and development purposes.

While it’s unclear if NYT is open to a licensing agreement after its earlier negotiations failed, leading to the lawsuit, OpenAI has reached a few deals recently. This month, it agreed to pay publisher Axel Springer for access to its content in a deal projected to be worth millions. And articles from Politico and Business Insider will be made available to train OpenAI’s next gen AI tools as part of a three year deal. It also previously made a deal with the AP to use its archival content dating back to 1985. Microsoft and OpenAI did not respond to a request for comment.

This year, tech companies have made concessions that would have once been unthinkable. Apple agreed to adopt the RCS protocol, allowing for text message interoperability with Android devices, and, after more than a decade it ditched the lightning port in its latest iPhone. Meta offered some users the choice to opt out of targeted advertising for a monthly subscription. TikTok, Meta, and Snap allowed some users to opt out of their recommendation algorithms entirely.

None of these concessions would have happened without pressure from the European Union. The bloc has long taken the lead in regulating “Big Tech” (or attempting to), but 2023 saw some of those efforts finally come to fruition.

The most immediate result of increased EU regulations this year came with the arrival of the iPhone 15 lineup, which was the first phone from Apple to support USB-C rather than its proprietary lightning port. The company may have eventually made the switch on its own, but it came in 2023 as a direct result of a European law that made USB-C the common charging standard.

"We have no choice as we do around the world but to comply to local laws," Apple exec Greg Joswiak said about the rules last year. (The regulation requires all new phones and other mobile devices to adopt USB-C by the end of 2024.)

Likewise, it’s widely believed Apple’s decision to finally agree to support the RCS standard in iMessage was the result of political will within the EU. Apple had long been resistant to supporting RCS, which would finally modernize text messages between iPhone owners and their “green bubble” friends.

Apple hasn’t publicly said why it changed its stance. But Google and other companies were pressuring EU authorities to regulate iMessage like other “gatekeeper” services that fall under its authority thanks to the Digital Markets Act (DMA). Apple’s surprise announcement that it would support RCS after all came on the same day as the deadline for companies to challenge the EU’s gatekeeper rules. So Apple’s about face on RCS could reasonably be interpreted as an attempt to pacify EU regulators who could have taken more aggressive measures, like requiring iMessage to be fully interoperable with other chat apps like WhatsApp.

Notably, both of these changes will also benefit US users, even though they are a consequence of EU-specific regulations.“There's definitely a higher degree of protection to the consumer in Europe than there is in the US,” Carolina Milanesi, a consumer analyst with Creative Strategies, told Engadget. Those protections, she noted, often “cascade down” to other regions because it can be impractical to implement different standards across geographies.

In addition to the gains made under the DMA, most of the major social media apps — including Facebook, TikTok, Twitter, YouTube, Snapchat and Instagram — fall under the purview of another EU law that went into effect this year, the Digital Services Act. Under this law, these companies are required to make detailed disclosures about disinformation and other harmful content, and explain how their recommendation algorithms work.

“If you force the social media industry to explain itself, to reveal to some degree its inner workings, it will have an incentive to not misbehave and/or incentive to self regulate more vigorously” explains Paul Barrett, deputy director of NYU’s Stern Center for Business and Human Rights.

Whether these measures will actually make these services better for those using them, however, is less clear. There are still open questions about how the rules will be enforced. But there have been a few notable changes for EU-based social media users.

Snapchat, Meta and TikTok all now allow European users to opt out of their recommendation algorithms entirely. Snapchat also ended most targeted advertising for 13- to 17-year-olds in the bloc. Additionally, Meta was forced to allow EU users to opt-out of targeted advertising or choose no advertising at all (in exchange for a hefty monthly subscription.)

While these may not seem like monumental changes, they do strike at the heart of all of these companies’ business models. And it’s unlikely, if left to self-regulate as US policymakers have been content to allow them to do, that any of these companies would have voluntarily acted against their own self-interest.

Every time Microsoft launched a major AI feature this year, I couldn't help but feel more skeptical about the company's new direction. Here's Microsoft, a notoriously conservative and slow-moving giant, reshaping its products around artificial intelligence not long after most people learned generative AI existed. The last time it made such a dramatic shift we got Windows 8, a failed attempt at making its flagship OS tablet and touchscreen friendly.

Now, the company is bringing AI right into the heart of Windows and I'm left wondering: Is Microsoft jumping into artificial intelligence to actually make its products better? Or is it just trying to stake a claim as an AI innovator and pray that the technology actually lives up to the hype? At this point, it's genuinely hard to tell.

As the Zune, WebTV and Windows Phone have shown, Microsoft isn't so great at timing. Its products often either land too early to be useful (as in the case of the sluggish WebTV), or arrive far too late to make an impact (like the genuinely great Zune HD). But when the company unveiled its AI-powered Bing Chat earlier this year, it was perfectly positioned to coast on the success of ChatGPT, which by then had reportedly reached 100 million users in just two months. According to UBS analysts, that would have made ChatGPT the fastest growing consumer application in history. What better time to mate the power of generative AI with one of its notoriously beleaguered products? Microsoft had nothing to lose.

Justin Sullivan via Getty Images

After investing a total of $13 billion in ChatGPT-maker OpenAI (and acquiring a 49 percent stake in the process), Microsoft was probably eager to show off its shiny new toy ahead of Google and others. The introduction of Bing Chat officially kicked off Microsoft's year of AI: Copilot launched on Edge, Microsoft 365 products like Word and Powerpoint and eventually made its way to Windows 11. Even more surprising, the company recently announced that Copilot is coming to Windows 10 — a sign that it wants AI features in front of as many people as possible. (Windows 11 reportedly accounts for 26 percent of Windows installations, while Windows 10 still has 69 percent. By targeting both platforms Copilot could potentially reach up to 1.4 billion users.)

There's no doubt that Copilot makes a great first impression. Type in a few words (or speak them aloud), and it returns with direct answers to your questions, like a whip-smart assistant. There are no ads to wade through, and you only have to engage with additional links if you want. It's a glimpse at a world beyond search engines, one where AI could help guide us through an increasingly chaotic media landscape. Microsoft's Copilots can also help out in specific applications: In Edge it can summarize the webpage you're looking at; it can help to transcribe and generate action points in Teams Meetings; and it can help unearth hard to find settings in Windows (for example, you could just type "How do I turn on Night Mode?" to flip that on).

But Copilot's confident veneer hides the fact that it often makes errors and can occasionally misunderstand your questions entirely. It's far less responsive than using a typical search engine, as there's a lot of opaque AI processing happening in the background. And in my testing, it also crashes more often than you'd think, which requires a “reboot” of your session (but at least it doesn't flash a blue screen like Windows).

Microsoft

In an effort to temper our expectations, Microsoft has a helpful note emblazoned atop Bing's AI chat: "Bing is powered by AI, so surprises and mistakes are possible. Please share feedback so we can improve!" Microsoft appears to show a bit of humility here by acknowledging that its AI chat isn't perfect, and it's trying to earn some brownie points by saying it's listening to your feedback. Mostly, though, that warning serves as a way out for Microsoft. It can tout Copilot's ability to write essays for you and hold vaguely realistic conversations, but the minute it screws up, the company can just say, "It's just a beta, LOL!"

The big test for Microsoft's Copilots and other generative AI tools comes down to one thing: trust. Can a user trust that it'll deliver the relevant information when it asks a question? Can we be sure Copilow will even understand our query correctly? Aaron Woodman, Microsoft's VP of Windows Marketing, tells us that trust will ultimately come down to users "kicking the tires" for themselves and seeing how well Copilot performs. "I think that type of organic growth is one that we're going to see over time," he said in an interview with Engadget at the Windows Copilot launch in September. "And I bet it'll be explosive because the value is there, and I think customers will see that very quickly."

Microsoft

Woodman also believes that users will understand that Copilot won't always be perfect, especially during these early days. "I weirdly think we're probably more empathetic with people and understand where they're at with growth than we are with technology," he said. "I think the best thing that we can do is honestly own that, be transparent about it. At some level, every conversation we're in, we're trying to lean into [that] this is a growth process. We want to make sure you understand reference materials. I think people will understand that we're trying to accelerate bringing [new] technology to them."

I’ve been using Microsoft’s AI solutions since Bing Chat launched earlier this year, and while it’s helpful for simple tasks, like creating a specification table comparing two products, it hasn’t exactly changed the way I work. Microsoft also had to seriously restrict Bing Chat’s capabilities early on after it started arguing with users and issuing disturbing responses. In Windows 11, Copilot can sometimes help me find settings like dark mode, but it can’t always pull up the controls within the Copilot pane, and sometimes it just sends me to general settings menus if it can’t figure out what I’m asking for.

More recently, I’ve had disappointing conversations with Bing when I asked if it was a good time to buy a Nintendo Switch (it took some prodding for it to bring up rumors of a potential Switch follow-up coming next year), and its ability to answer questions around images is still less useful than Google’s image search.

When I took a photo of my kid’s baby monitor and asked “What is this?,” Bing was aware of its function, but it got the actual model and manufacturer wrong. That query also took five seconds to complete. The Google Image Search took half a second and correctly identified it as the Eufy Space Monitor. Score one for traditional search (and yes, I know it’s also powered by its own set of computer vision models).

Microsoft

We can look to Microsoft's Github Copilot, which launched in November 2021, as one way users can learn to work with AI. It's mainly meant to serve as a partner alongside an experienced programmer: It'll look out for potential issues and it can even whip up some simple code.

According to developer Aidan Tilgner, Github Copilot can be genuinely useful for coders, so long as you keep your expectations in check. In the paper "GitHub Copilot AI pair programming: Asset or Liability?" authors Arghavan Moradi Dakhel, Vahid Majdinasab, Amin Nikanjam, Foutse Khomh, Michel C.Desmarais, and Zhen Ming Jiang found Github Copilot similarly useful, but note "it can also become a liability if it is used by novices, those who may not be familiar with the problem context and correct coding methods."

"Copilot suggests solutions that might be buggy and difficult to understand, which may be accepted as correct solutions by novices," the authors add. "Adding such buggy and complex code into software projects can highly impact their quality."

By leaning so much on Copilots in the future, Microsoft may also be tying itself too closely to OpenAI, a young company that recently went through one of the most volatile weekends in Silicon Valley history. OpenAI’s board fired CEO Sam Altman, but after a significant amount of internal pressure (and some cajoling from Microsoft CEO Satya Nadella), it ultimately re-hired him a few days later. If OpenAI goes through another tumultuous event, it won’t just be Microsoft’s $13 billion investment in danger: It’ll be the company’s future plans for practically all of its products.

According to Windows Central, Microsoft’s next major Windows update, “Hudson Valley,” may arrive next year with a slew of AI enhancements in tow. That includes the ability to analyze content being displayed in video chats, an improved Copilot that can remember everything you’ve done on your PC, and better system-wide search. Some features may also require CPUs with NPUs, like AMD’s last batch of chips and Intel’s new Core Ultra hardware. That’s similar to the Windows Studio Effects features like background blurring and auto-framing, which also require NPUs.

The one constant around AI these days is that everything is changing quickly. Since I started writing this piece, Microsoft announced Copilot would be upgraded with the more powerful GPT-4 Turbo and Dall-E 3 models, which will make them even more capable. Perhaps Microsoft and OpenAI will eventually be able to fix all of the issues I’ve seen with Copilot so far, and ultimately deliver a transformative AI tool that’s easily available to everyone. But I also hoped for the best when it came to the company’s dual-screen Duo and Neo plans, and all I got in return was disappointment.

Hyperloop One had once dreamed of building a high-speed freight link between Europe and China, one that could take cargo from one end to the other in a single day. That will, however, remain one of the many goals the company won’t be able to fulfill. Hyperloop One is shutting down, a staff member has confirmed to Engadget after Bloomberg published a report about its closure. It was founded in 2014 following the release of Elon Musk’s paper about his vision for hyperloop transportation technologies.

The company originally aimed to provide transportation for both cargo and people in the form of pods traveling through sealed metal tubes across long distances in airplane-like speeds. From 2017 until 2022, it was known as Virgin Hyperloop One due to an investment from Richard Branson’s Virgin Group. But Virgin quietly pulled its branding last year when the company decided to abandon its plans of transporting passengers to focus on building a cargo-only service. Hyperloop One laid off over 100 staff members early last year due to its change in priorities.

According to Bloomberg, the company has been having financial troubles for a while and has notably never secured a contract to build a working hyperloop system. It has now laid off most of its remaining employees, the news organization said, and the ones left will be let go on December 31. Until then, they’re reportedly overseeing the sales of Hyperloop One’s assets, including its machineries and test tracks.

As a precocious teen looking to improve my college application, I sat in on a business studies class. I figured taking two extra A-Levels at night school alongside those I took during the day would make me irresistible to admissions tutors. The class I watched examined if it was worth a large factory keeping its own trucks and drivers in-house rather than outsourcing them. The data showed selling the trucks and firing the workers was more expensive in the long run, and yoked the company to the whims of any third-party logistics company in the local area. Not to mention, if you don’t own a mission-critical component of your business, you’re a lot less powerful when negotiating with your suppliers. But the teacher, and the class, all agreed it was smart to sell it all because it made a bigger profit in the quarter and was cheaper for the next two years. These people had never considered if something bad would happen, and how to prepare for it. It was at this point I realized my values were out of step with the commercial orthodoxy and opted not to take the course.

I mention this because I’ve always thought the people in the tech industry with all the money are probably halfway savvy about how All Of This Is Meant To Work. I’d told myself that what, to me, appeared illogical and self-defeating was because they were playing a game of six-dimensional chess on a board I was too dim to see. Unless, of course, the economics of our industry are so unmoored from reality that everyone’s just pretending, or deluding themselves. And more than a decade of cheap money and lax regulation means everyone’s behaved a little bit sillier than they should have. Now the lights are coming up and everyone’s looking to see what’s actually going on, there’s nowhere for these apparently smart people to hide.

It’s stopped making sense for investors

UCG via Getty Images

The Silicon Valley mindset is easy to grasp: If you’re lucky enough to have spare cash, put a small bit of it behind some kids with a big idea. All it takes is for one of those bets – emphasis on the word bet – to win and you’ll get a slice of some pretty big profits. In an era where zero interest-rate policies mean it’s almost free to rack up extraordinary debt, it’s a better route than heading to Las Vegas with your 401k. Not to mention the special cachet and attention you can garner by presenting yourself to the world as a “guru.” But you might have noticed that a lot of high-profile bets haven’t been coming off of late, wasting a lot of cash in the process.

Take WeWork, which this year filed for Chapter 11 after working its way through $16.9 billion since 2014. What logic can we apply to its main backer, Softbank CEO Masayoshi Son*, to justify him burning the GDP of Jamaica on such a venture? Especially when Regus, which performs the same decidedly un-techy role of renting temporary office space, owns its properties and makes a small but regular profit every non-COVID year, was available to buy outright for a fraction of the cost? How did this amount of money pass from one company to another without any sort of internal or external oversight? And why did he think that WeWork’s nicer interior design and a beer tap on every floor was such a big draw? The only theory that holds water is that Son was so blindsided by promises of vast future profits (from office rental) that he lost any sense of self-restraint.

That mix of cheap credit and the promise of unbelievable future returns can be applied across the tech industry, too. It might help explain why the cost of streaming has leapt so high while the catalogs available have shrunk. The studios weren’t hurting for profit in the days before Netflix, but the fact it was valued like a tech company enabled it to rack up huge debts. That led plenty of studios to leap onto the bandwagon in the hope of getting some of that mythical profit. In the early days, the hope was that the sheer number of people paying for content would balance out the low cost. But now growth has stalled and there’s still $14.30 billion of debt, plus an audience with an ever-increasing desire for new content.

It’s stopped making sense for consumers

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The debt swinging around Netflix’s neck, and the necks of those who followed it into the streaming world save for Amazon, Apple and Warner Bros***, is directly related to this gold rush. And it’ll need to be paid off to the investors and banks who handed over billions of dollars in expectation of vast rewards further down the line. Which is why the cost of a standard Netflix subscription has pretty much doubled since 2011 – with Premium plans now costing $23 a month. Given the scattershot nature of streaming libraries and the fact Netflix can’t be your sole source of entertainment, most consumers have more than one subscription going at the same time. That’s been fine, more or less, while times are good, so what happens when the world’s economies all start to slow down and you’re looking to make room in your monthly budget?

It’s worth remembering new technologies are expensive, both in cost and how much time and effort you spend to get to grips with them. But while technology has had some world-changing hits in the past – personal computing, the internet, smartphones and, uh, social media – it’s been a while since we’ve had anything that big. But the industry can’t help but keep hyping the next big thing even if it’s obvious to anyone with eyes that it’s not going to be a winner. We’re at the peak of the hype cycle for machine learning, which its boosters tell us will automate us all into obsolescence in a decade or so**. The problem is, whenever you actually sit and try to use a generative AI, the results are underwhelming, so great is the gap between the promise and the reality. Take Google’s new AI which managed to give fake answers to spreadsheet-level questions like who won an Academy Award last year. You can already see the itchy feet of those hoping the Humane Pin will be the Next Big Thing despite its risible introduction video.

Consumers lose out here not just because of these expensive boondoggles but because they suck up all the oxygen from everything else. Many of these technologies were designed not to solve real-world problems, of which we have plenty, but to dazzle investors, placate Wall Street and dupe credulous buyers. It doesn’t help that generative AI, like crypto before it, uses a significant amount more energy than it should, exacerbating climate change. Sadly, when all the attention and money shifts to the next thing, we’ll all be poorer for it, both for the folks who were duped into reading machine-written articles about the importance of volleyball, and the folks who got laid off because some genius thought GPT-3 would do a better job without oversight.

It’s stopped making sense for workers

Embracer Group is a Swedish game publisher that loaded up on debt to buy every small studio and IP it could get its hands on. In 2018, CEO Lars Wingefors told GamesIndustry his company would eschew a “fewer, bigger, better” strategy in favor of a “diversified” lineup. In 2021, it said it had access to more than $2 billion in cash and credit to continue its spending spree, bankrolling a slew of newer, smaller titles. That included reviving TimeSplitters developer Free Radical to start work on a new game in the long-dormant cult series.Two years after that, the company admitted that a deal worth $2 billion in revenue over six years had fallen apart and that it would have to cut costs. Free Radical has now been closed, putting the last two years’ worth of work on the shelf and close to 1,000 people across Embracer have lost their jobs.

Across the industry, countless jobs have been lost as even profitable companies look to trim their headcount. Spotify CEO Daniel Ek even said the quiet part out loud when admitting the company “took advantage of the opportunity presented by lower-cost capital” to staff up. Now that the economic situation has shifted, and money isn’t as cheap as it used to be, the company is letting 1,500 people go less than a month before the holidays. Big names who have also trod the same path this year include (deep breath) Amazon (multiple times), ByteDance, LinkedIn (twice), Epic Games, Lyft, Metabook, Dell, Google and Microsoft.

Reality’s going to hit us in the face like a shovel

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When I was a kid, a relative worked for a company that made and sold slot machines for adult gambling. I must have been 10 when he came over and set up a game where he gave me a pound in 2p pieces, which I could wager on the outcome of a deck of cards. He’d rigged the game so that, despite all of the pledges to double my cash as my funds shrunk, I’d wipe out. It was a valuable lesson in why it’s not a smart idea to gamble your money, given by someone who saw it up close and personal every day.

The other lesson he taught me was the vow of gratitude he would utter often, which was doubly amusing given his atheism. Whenever there was a bad story in the news, or a tale of corporate woe closer to home, he’d say “there but for the grace of God go I.” Because he knew that so much of what happens in our lives is governed by chance, so it’s pointless to claim it was wisdom. We should always remember that none of us are untouchable, and that the worst phrase in the English language is “what could possibly go wrong?” It’s just a shame that so many of the supposed great minds in the technology industry didn’t get the chance to learn this lesson when they were young enough to appreciate it.

* Wikipedia – hardly a symbol of partisanship – has gone studs-in on Son. At the time of writing, his biography says “his reputation as an investor rests almost solely on his $20 million initial investment in Alibaba Group in 2000.” Given the rest of his track record – and the fact he is presently in debt to his own company to the tune of several billion, ouch.

** I do wonder how many of its backers who spend their days worrying about Roko’s Basilisk have thought about how they’ll be treated by the 85 million or so people suddenly forced into serfdom.

*** Warner Bros. malaise is more directly related to the debt tied to the various buyouts and sales that has seen it shifted from one corporate parent to another. Not that the streaming wars has helped here, but it's fair to say that its problems are a different realm to those of its peers.

In an interview this fall following his return to Earth from the International Space Station, NASA astronaut Frank Rubio shared a little mission anecdote that had us gripped: after he’d harvested one of the first tomatoes grown in space and bagged it up for a presentation, the bag and its contents went missing. With no trace of the fruit, the other astronauts jokingly accused Rubio of eating it. Then, eight months later at the beginning of December, the lost tomato reappeared. A photo shared by NASA now shows there were actually two tomatoes in the rogue sample — and, all things considered, they don’t look half bad.

While a tomato left to rot on Earth isn’t a pleasant thing to come across, Rubio’s tomatoes just look a bit dried out. “Other than some discoloration, it had no visible microbial or fungal growth,” NASA wrote in a blog post.

NASA has for years been experimenting with ways to grow food on the ISS and studying how the space environment affects plant growth. The red dwarf tomatoes were grown as part of a program called the eXposed Root On-Orbit Test System, or XROOTS, which uses a combination of hydroponic and aeroponic techniques instead of soil. Rubio, who was on the ISS for a record-breaking 371 days before his return in September 2023, harvested a batch of the tomatoes in March to be sent back to Earth and examined for the VEG-05 study.

As for the sample Rubio hung onto, which he intended to show to schoolkids in an event a crewmember had planned, the astronaut said the tomatoes simply disappeared. “I was pretty confident that I Velcroed it where I was supposed to Velcro it, and then I came back and it was gone,” he said. Rubio said he spent “eight to 20 hours” looking for it, to no avail. Now that they’ve turned up (and since been thrown away), we’re just dying to know where they were hiding all that time. We've reached out to NASA and will update this story if we find out any more information.

Every day, there seems to be new generative AI news, and while it can often be serious and quite technical, this time around it's just plain fun. Instagram has launched a new generative AI-powered tool called backdrop that lets you create a new image in the, yes, background of your Story. Meta's generative AI lead, Ahmad Al-Dahle, announced the feature on Threads alongside a video tutorial.

Instagram's backdrop tool appears once you upload or capture content for your Story. It sits alongside existing icons at the top of your screen, like text and music, represented by an image of a person with a rectangular frame behind them. To use backdrop, just click on that icon, and the image's entire background will go checkered (similar to picture editors like PhotoShop) along with a text box prompting you to "describe the backdrop you want..." From there, you can add anything from "surrounded by puppies" to "chased by dinosaurs" — very different vibes — and the AI tool will generate it in the background.

Don't expect people to actually think you're hanging out under the aurora borealis (another possible prompt), as your Story will get tagged with AI·Backdrop by Instagram, along with a sticker saying try it and your description in quotation marks. Currently, Instagram's backdrop tool is only available to users in the United States.

If you've been thinking about hosting your own mini data center or need to stream 1,333 Netflix 4K programs at once, Google Fiber has the answer. The Alphabet-owned ISP will launch it's 20Gbps service with Wi-Fi 7 in select cities early next year for $250 a month (plus taxes and applicable fees) — not that ridiculous of a price for such ridiculous speed. 

"We’re starting in Kansas City, North Carolina’s Triangle Region, Arizona, and Iowa," the company wrote. "As we continue to roll out Nokia’s 25G PON across our network, we’ll open up invitations in new areas, so make sure you’ve let us know if you are interested in being the one of the first to have this in your home."

As with Google's other Fiber offerings, the 20Gbps speeds are symmetrical, so you'll see them whether you're uploading or downloading. Google notes that Wi-Fi 7, which offers peak wireless speeds of 40Gbps, is so bleeding-edge that it hasn't even been fully certified yet. The service is being offered through Google's GFiber Labs division, and is made possible by new Nokia 25G PONs (passive optical networks) installed as part of last-mile infrastructure upgrades. 

While obviously expensive, the new plan allows for some interesting possibilities. For instance, Google promises multi-gig internet speeds on multiple floors of your house, for example, thanks to the custom Wi-Fi 7 router co-created with Actiontec. That could let plan buyers amortize the price across multiple users — 20 people could have 1Gbps connections for $12.50 per month each, for instance. 

The new plan offers four times the speed of AT&T's Elite 5Gbps fiber offering for the same $250 per month. However, Google Fiber's problem has never been the technology or value proposition, but the availability. The company's 5Gbps and 8Gbps plans only just got off the ground and are still only available in a few regions. While available in some major cities (San Franciso, Atlanta, San Antonio), Google Fiber is notably absent in key markets like New York City and Los Angeles. 

The 20Gbps plan will start rolling out in the above-mentioned cities in the first quarter of 2024. Just be aware that you'll need the fastest Wi-Fi possible on your computer (currently Wi-Fi 6E and Wi-Fi 7 on select models) to even get a fraction of that maximum speed. 

Alex Jones is back on X five years after then-Twitter made the decision to permanently ban him and his show, Infowars, for violating the site’s policy on “abusive behavior.” Elon Musk — who last year said he wouldn’t unban Jones because of the conspiracy theorist’s insistence on calling the Sandy Hook massacre a hoax — created a poll on X over the weekend asking users to vote on whether Jones should be reinstated. 

The poll closed with a majority vote for “Yes.” As of Sunday, Jones’ personal account was once again active, and already retweeting Andrew Tate.

Jones is well known for pushing disturbing conspiracy theories, which in some cases have led to real world harm. He was sued by the families of Sandy Hook victims, who won close to $1.5 billion in legal judgments after testifying in court that they’d been harassed and sent death threats by his followers. But after Jones appeared on Tucker Carlson’s show on X last week, the conversation about his ban was reignited.

Responding to one user after the poll closed, Musk wrote, “I vehemently disagree with what he said about Sandy Hook, but are we a platform that believes in freedom of speech or are we not? That is what it comes down to in the end. If the people vote him back on, this will be bad for X financially, but principles matter more than money.” The decision comes at a time when X is rapidly losing advertisers because of hate speech on the platform, some of which Musk himself has elevated. Walmart, Apple, IBM and Disney, among others, have recently pulled their ads from X.