Investment underlines Amazon’s AI weaknesses. Amazon is staking its claim in the world of generative AI but at the same time, the size of the bet it is making on Anthropic clearly signals that Amazon’s existing AI is second-rate and that something else is needed to allow it to play in the big leagues. Amazon is investing $1.25bn in Anthropic...
Unity puts down the revolver. Unity has realised that developers are the life’s blood of both its business and its long-term potential and has greatly watered down its plans to earn more money which will preserve its position but will do the share price no good whatsoever in the short term. Unity has written an open letter to the community...
Weak markets don’t matter that much. Life is not great in The Metaverse at the moment as shipments are expected to almost halve in 2024 but in the grand scheme of things, this is irrelevant as RFM Research does not expect any real traction in this market much before 2028 or 2029. According to Counterpoint Research (see here), shipments declined...
Alexa might finally deliver on a 6-year old promise. Amazon’s annual Alexa event was dominated by generative AI, but the reality is that Amazon promised all this 6 years ago and remains demonstrably behind the curve when it comes to generative AI. It is ironic that Amazon has by far the largest installed base of hardware that could be upgraded...
The US sees through the propaganda. Commentary from the US Department of Commerce indicates that it has not fallen for the propaganda and realised that the ability to make chips economically at scale is more important than being able to achieve a single feat of engineering. The launch of the Huawei Mate 60 Pro has caused a lot of fuss...
Microsoft accidentally makes the case for edge AI. A simple mistake by employees exposed terabytes of Microsoft’s internal data to the world underlining that generative AI is still at the Wild West stage and that inference and even training at the edge is a safer prospect in the long-term. Microsoft’s AI researchers posted a repository of training data on GitHub...
Unity gambles with its market position and brand. Unity’s financial requirements have led it to alienate its customers which if left unresolved could cause its dominant position to erode and with it the substantial long-term potential it has as the platform for The Metaverse. Unity has updated its terms of business which will now require developers who meet either revenue...
WhatsApp Business is the only real opportunity. WhatsApp cost $22bn to acquire but has so far delivered very little although the indirect value that it has created in terms of keeping Meta as one of the largest digital ecosystems globally is indisputable. Unfortunately, unless one is a generative AI company, $0 revenues mean no contribution to the share price which...
SoftBank takes most of the value. At $51 per share, investors are being asked to pay for much of the growth that the company says it should be able to generate meaning that there is not very much being left on the table for public market investors. Despite the current malaise in the smartphone market, Arm is expecting a fairly...
Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.
OpenAI – Haymaker
OpenAI makes hay while the sun shines. When a company that has issues with making profits can raise money at a valuation of $85bn, it becomes abundantly clear that investors in generative AI have taken leave of their senses. Open AI is reportedly raising money at a valuation of $80bn to $90bn which to me looks like an opportunistic event...