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The G42 logo.
Hard Numbers: Microsoft’s big Gulf investment, Amazon’s ambitions, Mammogram-plus, Adobe pays up, Educating Don Beyer
1.5 billion: Microsoft has announced a deal to invest $1.5 billion in G42, an artificial intelligence firm based in the United Arab Emirates that recently cut ties with Chinese suppliers that had raised US security concerns. Washington and Abu Dhabi relations have been strained over the UAE’s ties to Chinese tech companies. But this deal – which grants Microsoft a minority stake in the company – could signal a new era of relations with the US.
33: Amazon is talking about artificial intelligence – like, a lot. In his recently published annual letter to shareholders, Amazon CEO Andy Jassy mentioned AI 33 times. The company invested $4 billion in Anthropic, which makes the Claude chatbot, and will host Anthropic on Amazon Web Services. Jassy said the company wants to build AI models more so than applications (think GPT-4 instead of ChatGPT) and sell directly to enterprise clients.
40: Clinics are starting to offer an AI-assisted add-on to typical mammograms. Interested patients typically incur an out-of-pocket charge between $40 and $100 to have an AI model scan their breast screening for additional insights — even, possibly, early breast cancer detection.
3: Adobe is planning to compete with OpenAI’s Sora video model. To do so, it’s offering photographers and videographers $3 per minute to upload videos of people doing everyday activities like walking around or sitting down, or simple shots of hands, feet, or eyes to train their new generative AI model. It’s an expensive but cautious approach intended to build up a comprehensive database while staying on the right side of copyright law and avoiding potential imbroglios like the one OpenAI faces for using YouTube videos to train its models
73: Congressman Don Beyer, a Democrat from Virginia, decided he wanted to return to school to learn more about AI. So, that’s what he did. The 73-year-old car dealership mogul-turned-politician recently enrolled in a master’s degree program in machine learning at George Mason University. He’s even learning to code, which he says is helping him better think about all kinds of problems in Washington.Google's Gemini home page displayed on a smartphone in a photo illustration.
Hard Numbers: Pay for Google?, Indonesian investment, Amazon walks out on AI, Scraping YouTube
175 billion: Google said it made $175 billion in revenue from its search engine and related advertising last year, but is it ready to risk the golden goose? The company is reportedly considering charging for premium features on its search engine, including AI-assisted search (its traditional search engine would remain free). We’ve previously tested Perplexity, one of the companies trying to uproot Google’s search dominance with artificial intelligence, and you can read our review here.
200 million: The chipmaker Nvidia is teaming up with Indonesian telecom company Indosat to build a $200 million data center for artificial intelligence in the city of Surakarta, according to Indonesia’s communications minister. This news comes weeks after AI played a central role in the country’s presidential election, and it represents a major investment from one of the world’s richest tech companies in a key emerging market as Indonesia seeks to modernize its economy.
1,000: Amazon’s Just Walk Out in-store AI system for cashier-less grocery store checkout relied heavily on more than 1,000 contractors in India manually checking that the checkout transactions were accurate. Now, Amazon has announced it’s ditching the technology, which was being used in 60 Amazon-branded grocery stores and two Whole Foods stores.
1 million: One OpenAI team reportedly transcribed more than 1 million hours of YouTube videos to train its GPT-4 large language model. The company built a speech recognition tool called Whisper to handle the massive load, a move that may have violated YouTube's terms of use. YouTube parent company Google is a major rival to OpenAI in developing generative AI. Google hasn’t filed suit yet, but legal action could eventually come.Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland.
Will Trudeau’s digital services tax lead to trade dispute?
After all, US Ambassador David Cohen warned in July that if Canada introduces such a tax, his country would have “no choice but to take retaliatory measures in the trade context, potentially in the digital trade context.” Canadian Finance Minister Chrystia Freeland, no stranger to trade disputes with her American friends, appears determined to proceed.
"It's really a matter of fairness," she said. "There are other countries, our partners, who are today collecting DST. That DST is helping make essential investments in their countries, and it's just not fair for Canadians to be deprived of that revenue."
The Canadian argument is that tech companies collecting billions of dollars of revenue in Canada — like Netflix and Amazon — are able to shelter their profits in low-tax jurisdictions and are not contributing meaningfully to the economy. The Americans, unpersuaded by these arguments, don’t want to see Canada break from an OECD consensus, which is to wait until there is an international tax agreement. Business groups in both countries have asked Canada to hold off to avoid the uncertainty and disruption of a trade dispute.
The new legislation introducing the tax did not include a date, which means the government could implement it when it sees fit. Freeland may be hoping that it gives her leverage in trying to convince her American counterparts to accept the tax without imposing countervailing duties.
Alsu Kurmasheva, an editor with Radio Free Europe/Radio Liberty's (RFE/RL) Tatar-Bashkir Service, poses in this undated handout photo.
Hard Numbers: Russia arrests another American journalist, Turkish company cuts Guinea Bissau’s power, Amazon drought is getting desperate, sex workers fight to preserve Amsterdam's red light district
5: Russia has arrested another US journalist, Alsu Kurmasheva of the Radio Free Europe/Radio Liberty in Prague for failing to register as a foreign agent. Kurmasheva, who has dual US-Russian citizenship, faces up to five years in jail and joins Evan Gershkovich of the Wall Street Journal as the second US journalist arrested in Russia this year.
36: Turkish power giant Karpowership – one of the world’s largest operators of floating power plants – turned off power in Guinea Bissau’s capital for 36 hours after the government failed to pay $17 million of debt to the company. Karpowership also switched off electricity to Sierra Leone in September after it failed to pay the nearly $40 million it owed the company.
121: The water levels in the port of Manaus, Brazil’s most populous Amazon rainforest city, have reached their lowest levels in 121 years as a historic drought upends a region where rivers are the main source of transportation for people, food, and water. Many areas have not had rain in three months, leaving boats stranded and remote areas without food and other critical supplies.
20,000: Sex workers in Amsterdam are protesting the proposed relocation of the red light district to an out-of-town "erotic center," challenging the mayor's plan to change the city's image and reduce tourism and crime. The mayor faces opposition from sex workers who feel unfairly blamed for the district's issues with petty crime. More than 20,000 people have signed a petition against the transfer.The logo of Amazon is seen at the company logistics center in Lauwin-Planque, northern France, November 15, 2022.
The FTC takes on Amazon, Canadian investigation ongoing
The FTC says the online mega-retailer has engaged in a “pattern of illegal conduct” that includes blocking competitors, inflating prices, crushing innovation, and reducing market quality.
In essence, the FTC claims that Amazon traps consumers and sellers in its orbit, dominating market share and exploiting its position to undermine independent sellers and reduce choice for consumers while also using its position to drive up prices. It also alleges that Amazon games its search results to push its own products.
Amazon denies the allegations and says the lawsuit would hurt businesses and consumers alike, sending prices higher and slowing delivery speeds. It’s ready to fight back, and as a company valued at roughly $1 trillion, it has the resources to do so.
Anyone looking for a quick resolution is going to be disappointed. Canada launched an antitrust investigation into Amazon in August 2020. That probe is ongoing, and the Competition Bureau has not said when it expects to complete its work, which would precede any further action.
In 2022, the Canadian government amended its Competition Act to introduce stiffer fines and penalties for businesses that violated the law. Under the new rules, businesses like Amazon could be on the hook for as much as 3% of their annual gross revenues worldwide if found to be abusing their dominant market position, which is a lot more than the previous cap of CA$10 million.
We’re keeping an eye on how the FTC and Competition Bureau lawsuits and investigations proceed, and whether Amazon adjusts any of its practices in the meantime. It’s doubtful they will. In 2022, in Canada, the company threatened to shutter Marketplace if the government strengthened competition regulations, though it didn’t go through with the plans.
Former U.S. President and Republican presidential candidate Donald Trump attends a 2024 presidential election campaign event at Sportsman Boats in Summerville, South Carolina, U.S. September 25, 2023.
Hard Numbers: Trump liable for fraud, Kenya signs a big defense pact, Thailand jails king’s critic, Mexican exports get stranded, Nigeria rescues students
2.2 billion: Donald Trump was found liable for fraud Tuesday by a New York judge for lying about his wealth on financial statements to banks and insurers, inflating his net worth by approximately $2.2 billion dollars. Justice Arthur Engoron stripped the former president of control over some of his properties and sanctioned his lawyers for their behavior. Despite extensive legal troubles, Trump remains the frontrunner – and by a wide margin – for the GOP 2024 presidential nomination.
5: The US and Kenya have signed a 5-year defense agreement under which Washington will support the East African country’s security operations. Kenya has been battling al-Shabab jihadists in neighboring Somalia for years and is now poised — with $100 million in new US support — to lead an anti-gang mission to Haiti. Read more about why Kenya wants the Haiti assignment here.
4: A prominent Thai lawyer and activist who has called for reform of the country’s monarchy was sentenced to 4 years in prison under Thailand’s strict lese-majeste laws. Arnon Nampa was one of the leaders of the mass youth-led protests against the junta-dominated government in 2020. Thai politics were recently upended by the return of exiled former PM Thaksin Shinawatra. Read more here.
125: At least 125 people were killed in an unexplained explosion at a crowded fuel depot in the Nagorno-Karabakh region of Azerbaijan on Tuesday. The victims were among thousands of ethnic Armenians fleeing Karabakh after Azerbaijan retook control over the Armenian-majority region last week for the first time in more than 30 years. Read more background here.
4: Nigerian security forces rescued 14 university students who had been abducted by gunmen in northwestern Nigeria. Half a dozen students remain unaccounted for. Kidnappings for ransom have grown common in the region in recent years, as part of a broader clash between nomadic and pastoral ethnic groups. It is the first major kidnapping of its kind since President Bola Tinubu took office earlier this year with promises to improve security.
What is a technopolar world?
Who runs the world? In a series of videos about artificial intelligence, Ian Bremmer, founder and president of GZERO Media and Eurasia Group introduces the concept of a technopolar world––one where technology companies wield unprecedented influence on the global stage, where sovereignty and influence is determined not by physical territory or military might, but control over data, servers, and, crucially, algorithms.
We aren’t yet in a fully technopolar world, but we do exist in a digital order where major tech companies hold sway over standards, operations, interactions, security and economics in the virtual realm. And Bremmer says this is just the beginning. He highlights two key advantages that technology companies have: their dominance over the digital space, which profoundly impacts the lives of billions of people every day, as well as their role in providing critical digital infrastructure required to run a modern economy and society.
As artificial intelligence and other transformative technologies advance, and more and more of our daily life shifts online, Bremmer predicts a shift in power dynamics, where tech companies extend their reach beyond the digital sphere into economics, politics, and even national security. This will almost certainly challenge traditional ideas about global power, which may be determined as much by competition between nation states and tech companies as it is, say, between the US and China. Incorporating tech firms into governance models may be necessary to effectively navigate the complexity of a technopolar world, Bremmer argues. Ultimately, how these companies choose to wield power and their interactions with governments will shape the trajectory of our economic, social, and political futures.
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