In today’s Tech News Digest, we are going to talk about AI, a lot 🙂 May was full of AI news, and AI was all over the headlines. Thus, we have collected the latest AI developments, yet we will also discuss major tech industry changes, including layoffs and leadership shifts.

AI in full bloom: Anthropic, OpenAI, and Google’s major moves

Anthropic’s major moves

This month, Anthropic, led by Daniela Amodei and Dario Amodei, made the front page headlines. First, it announced 2 significant updates: a new enterprise plan called Team and an iOS app. 

  • The Team plan is tailored for businesses, including those in regulated industries. It provides higher-priority access to Anthropic’s Claude 3 AI models, advanced admin and user management features, and a 200,000-token context window.
  • Anthropic launched an iOS app that offers access to Claude 3, syncing with the web version and supporting real-time image analysis. This move complements the company’s broader strategy to capture enterprise market share by making its AI tools more accessible and integrated into daily workflows.

Moreover, Anthropic is expanding its operations to Europe while also raising additional capital. This expansion includes the launch of Claude in Europe with support for multiple languages. It aims to accelerate its growth by extending its API to European developers. Company has already secured substantial funding of $8 billion so far, with more than $7 billion of that sum raised in the last year.

Besides all of this, Anthropic now permits children to use its AI technology under specified conditions, requiring developers to incorporate safety features and comply with regulations like COPPA. This policy shift aligns with growing trends of young people using AI tools for educational and personal purposes, prompting discussions about guidelines and rules to ensure safe and responsible AI use among children.

OpenAI launches ChatGPT 4-o, but does OpenAI care about safety?

OpenAI, led by its CTO Mira Murati, has launched its latest generative AI model with integrated text, speech, and video capabilities, enhancing ChatGPT with real-time voice interactions and improved image analysis. GPT-4o is more multilingual and efficient, offering faster and cheaper services than GPT-4 Turbo. Initially available to ChatGPT users, broader features will roll out gradually, including an improved user interface for macOS and Windows.

However, OpenAI also disbanded its safety team, prompting the resignation of co-leads Jan Leike (who left for Anthropic) and Ilya Sutskever and sparking debates about the company’s priorities. CEO Sam Altman has faced criticism for prioritizing product launches over safety measures, reflecting a shift towards innovation at the expense of safeguards.

Google I/O event: Key AI announcements

Google’s 110-minute I/O 2024 was a marathon of AI mentions, hitting the magic number 121 by their own count. What does it mean? Right! Google is going all in on AI. On May 14th, Google I/O showcased numerous AI advancements across various platforms, emphasizing improvements in search, productivity tools, and developer capabilities. Key highlights included:

  • A revamped AI-powered search engine: Google introduced an upgraded AI-powered search engine for more accurate and contextually relevant results.
  • Expanded context Window AI model: A new AI model with a 2 million token context window allows the processing of larger amounts of information for more nuanced responses.
  • AI helpers in Google Workspace: New AI features in Gmail, Drive, and Docs automate tasks like summarizing emails, drafting responses, and organizing documents to boost productivity.
  • Developer tools for AI integration: Google launched tools for developers to integrate AI into their apps, including APIs for natural language processing and image recognition.
  • Project Astra, future AI Vision: Project Astra combines sight, sound, voice, and text for a more immersive AI experience that is capable of real-time object recognition and interactive responses.

Microsoft aims to transform Windows into an AI-powered operating system

Microsoft is set to boost Windows with AI capabilities to improve user experience and productivity. Through features like Recall and its Microsoft AI Copilot integration, Windows 11 is poised for deeper AI integration. This move coincides with the unveiling of Copilot+ PCs and plans to extend Windows functionality to Meta Quest headsets, emphasizing Microsoft’s commitment to AI-driven innovation.

Latest on tech layoffs in May 2024

Tech industry layoffs update

In May 2024, major tech companies revealed substantial layoffs. Google has implemented layoffs across several key teams, including Flutter, Dart, and Python, just weeks before its annual I/O developer conference. The layoffs, confirmed by Google, are part of organizational changes aimed at streamlining operations and aligning resources with the company’s priorities.

Microsoft has shut down multiple game studios, including Arkane Austin and Tango Gameworks, amid broader reductions at Bethesda. The number of affected employees has not yet been specified. Additionally, TikTok is expected to significantly reduce its global operations and marketing teams, though the extent of these layoffs remains unknown. 

By the way, earlier we discussed the main causes of mass layoffs and, most importantly, how mass layoffs in the tech industry can impact your business.

AWS CEO Adam Selipsky resigns from his position

Adam Selipsky is stepping down as CEO of Amazon Web Services (AWS), with AWS sales chief Matt Garman set to replace him starting June 3rd. Selipsky, who has been instrumental in AWS’s growth since 2005 and returned in 2021 after a stint as CEO of Tableau, is leaving to take a break and spend more time with family.

Selipsky’s departure comes amid criticism over missed opportunities in the generative AI space, including delays in launching AWS’s own AI model and missed investments in leading AI startups. Despite these issues, AWS remains a market leader with a 31% market share and significant profitability.

Amazon CEO Andy Jassy praised Selipsky for his leadership during the pandemic and highlighted AWS’s recent achievements, including reaching a $100 billion annual revenue run rate. However, AWS has faced challenges, including slowed revenue growth and major layoffs.

Garman, who has been with AWS since 2006 and has led various divisions, will take over as CEO with a focus on continuing AWS’s growth and innovation.