OpenAI wants to make the 'iPhone of AI' with Jony Ive and Masayoshi Son; And, the Indian government could ban new tech over security concerns

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Market Watch

• Indian benchmark indices ended the day in the green, with the Sensex increasing 320 points at 65,828 and the Nifty gaining 114 points at 19,638.
• Sectorally, only Nifty IT (-0.30%) shed, while Pharma (+2.66%) and Healthcare (+2.56%) gained the most during the day.

Four things:

• The Jalan Kalrock Consortium has completed its infusion of Rs 350 crore in Jet Airways, paving the way for the airline to resume operations in 2024.
• Temasek plans to sell 8-9% of its stake in Manipal Hospitals to Mubadala and Brunei Investment Authority.
• IHC will sell its stakes in Adani Green Energy and Adani Energy Solutions, exiting them completely after 18 months.
• Hindustan Zinc is planning a corporate restructuring to unlock shareholder value.

OpenAI and Jony Ive in talks to raise $1 billion from SoftBank to build the ‘iPhone of AI’

OpenAI, in collaboration with former Apple designer Sir Jony Ive and SoftBank’s Masayoshi Son, is exploring the development of a revolutionary AI consumer device, fuelled by a potential $1 billion investment from SoftBank.

• OpenAI is in advanced discussions with Sir Jony Ive, who played a pivotal role in designing Apple’s first iPhone, and Masayoshi Son of SoftBank.
• While OpenAI has released several generative AI models, this would be the company’s first hardware product.?
• The Microsoft-backed startup’s CEO Sam Altman and Ive have been brainstorming in San Francisco, exploring various ideas and designs for a consumer product that would revolutionise how users interact with AI,?drawing parallels with how the iPhone transformed touchscreen computing and mobile internet accessibility.
• The design and development process is still in the early stages, with a variety of ideas under consideration; however, Ive sees this project as an opportunity to develop a more intuitive and less screen-reliant way of interacting with technology, as a possible way to avoid replicating the addictive nature of smartphones.

The intrigue: SoftBank is considering fueling this venture with more than $1 billion in funding, though these discussions are still ongoing.

• Masayoshi Son has pitched the involvement of chipmaker Arm to play a central role in the development of the AI device.?
• Notably, the tech investment firm holds a 90% stake in Arm, which recently listed on bourses.

Between the lines: Separately, OpenAI is discussing a secondary share sale that would nearly triple the company’s valuation to $80-90 billion.

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New Digital India Bill may ban some new tech due to concerns over user harm, security

The Indian government may regulate and even prohibit certain new technologies if they are seen as a risk to users or national security under the Digital India Bill.

What will be affected? While the emerging technologies that would be under the remit of the bill are yet to be determined, it could potentially cover sectors like AI, blockchain, and the Metaverse.

The details: Some emerging technologies may be prohibited if they would likely pose significant risks to users that cannot be mitigated, threaten national security or public order, or are likely to discriminate against individuals based on aspects such as sexual orientation or political beliefs, according to an anonymous government official.?

• However, the reasons for restricting technologies would be given in writing if such a move were enacted.
• Essentially, the government could penalise developers if their technology violates proposed principles, and could potentially block access to certain software or applications.
• New technologies must comply with the Digital India Bill at all times, and the government may temporarily restrict public access in light of non-compliance.

Additionally, social media platforms and other companies will have to inform users of significant technological decisions, such as the deployment of new AI models, and give users an opt-out alternative.?

• They will have to provide an explanation for the algorithm's rationale and what user characteristics it processes.
• The government may also change its tune on automatically providing social media platforms ‘safe harbour’ — i.e., providing legal immunity to a platform for the user-generated content that it hosts — which raises concerns about which platforms will enjoy such provisions and on what basis this will be decided.?

ICYMI

• US Secretary of State Blinken encouraged India to cooperate with Canada’s probe into Hardeep Singh Nijjar’s murder in a meeting with External Affairs Minister Jaishankar.
• A suicide bomb attack in Mastung in Pakistan’s Balochistan province killed over 52 people and injured over 130 more.
• Mark Zuckerberg demonstrated the new Metaverse in an interview with podcaster Lex Fridman, with the introduction of highly realistic avatars.
• Dr Cyriac Abby Philips AKA ‘The Liver Doc’, known for debunking medical myths on social media, has been suspended from X amid a defamation case involving Himalaya Wellness Corporation.
• YouTube couple Anurag and Karolina Goswami of ‘India in details’ have accused Dhruv Rathee of sending goons to attack them in Europe.
• TCS has retained its position as India’s most valuable brand, with a brand value of $42.9 billion.
• The mysterious murder of LeT operative Maulana Ziaur Rahman, which mirrors previous similar killings, has alarmed Pakistan’s ISI.
• A gunman killed three people in a shooting spree at a Netherlands university, including a 14-year-old girl and a teacher.
• Due to a statewide bandh called by Kannada Okkuta, 44 flights were cancelled at the Bengaluru International Airport.