The tech industry is experiencing a period of significant shifts, with a software selloff impacting valuations, while a billionaire's decision blocks a potential ICE detention center in Texas, and experts debate the impact of AI on productivity and employment. These developments come as indirect nuclear talks between the U.S. and Iran continue, according to NPR.
The software sector has seen a widespread selloff, with JPMorgan analysts estimating that software companies lost around $2 trillion in value over the past year, according to Fortune. Some market veterans see this as a "generational" buying opportunity, despite concerns that advancements in artificial intelligence could erode the value propositions of tech giants.
In Texas, billionaire Edward Roski Jr. blocked the sale of a 1-million-square-foot warehouse property owned by his company, Majestic Realty, which could have been used as an ICE detention facility. Roski confirmed that the Department of Homeland Security had approached his company, but he stated that no deal would be made. The potential detention center had been rumored to hold up to 9,500 beds.
Meanwhile, economists are revisiting the "Solow's productivity paradox" from the 1980s, as thousands of CEOs have reported that AI has had no impact on employment or productivity. Nobel laureate Robert Solow observed a similar trend in the 1980s, when new technologies like microprocessors failed to immediately boost productivity. Productivity growth slowed after the advent of these technologies, dropping from 2.9% between 1948 and 1973 to 1.1% after 1973, according to Fortune.
The impact of AI on the workforce is also being debated. Some, like Nvidia's Jensen Huang, describe the current period as another industrial revolution, similar to the early 1800s. Corporate profits are capturing extra productivity, and salaries are not increasing proportionally, according to Fortune.
In international affairs, the U.S. and Iran continue indirect nuclear talks. NPR spoke with Richard Nephew, former deputy special envoy for Iran in the Biden administration, to discuss the challenges that remain in the negotiations.
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