Software stocks experienced a significant selloff, while a billionaire blocked a potential deal for an ICE detention center, and Warner Bros. criticized ByteDance for AI-generated videos infringing on its intellectual property. These events, along with concerns about AI's impact on productivity and the use of smartphones in education, highlight several key developments across the technology and business sectors.
The software industry faced a downturn, with software companies losing approximately $2 trillion in value over the past year, according to JPMorgan analysts, as reported by Fortune. Some experts, however, viewed this as a "generational" buying opportunity, anticipating the next phase of the AI boom.
Meanwhile, Edward Roski Jr., a billionaire and Trump supporter, prevented the sale of a 1-million-square-foot warehouse owned by his company, Majestic Realty, for use as an ICE detention facility. The facility could have potentially held up to 9,500 beds. Roski confirmed that the Department of Homeland Security had approached his company, but he stated that the deal would not happen, as reported by Fortune.
In the realm of AI's impact, thousands of CEOs admitted that AI had no impact on employment or productivity, leading economists to revisit the "Solow's productivity paradox," a concept from 1987. Nobel laureate Robert Solow observed that new technologies did not immediately translate into increased productivity.
Additionally, Warner Bros. criticized ByteDance for its AI video service, accusing the Chinese company of facilitating user-generated knockoffs of its iconic characters, including Superman, Batman, and characters from "Game of Thrones." The studio's legal counsel sent a letter to ByteDance, according to Variety.
The widespread use of smartphones by university students in China also highlighted a conflict between conventional teaching methods and the realities of learners who grew up using digital technologies, according to Nature News.
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