🍋 SiriAI

How Apple plans to revamp Siri in the AI arms race, plus $GME rally continues, and Boeing in more trouble.

Together With

"We have three criteria: If it's publicly traded, liquid and amenable to modeling, we trade it." — Jim Simons

Good Morning! Meme stocks continued their rally, and AMC made hay while the market is shining with a $250 million stock sale. Boeing faces more trouble as the DOJ claims the company violated a 2021 agreement that protected it from criminal charges. Meanwhile, Google is launching its most powerful AI models amidst growing competition, as OpenAI co-founder Ilya Sutskever departs from the company. Private equity dodges a major antitrust lawsuit. Plus how to make friends as an adult.

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SQUEEZ OF THE DAY

SiriAI

If you have an iPhone, you probably feel like Siri fell off a little bit. Apple's original virtual assistant was all the rage when Apple introduced the feature in 2011. But, since then, new technology has leapfrogged Siri. Siri’s still in the 2010s -  it can’t follow conversations and often misunderstands your questions.

Apple realizes that it’s fallen behind and that Siri just isn’t all that relevant to its users right now.

They're trying to implement generative AI, and they'll even release an improved Siri next month. The expectation is that Siri will be a lot more conversational, and will be able to 'chat' rather than just respond to one question at a time.

It's sort of a catch-22 for Apple. If they lean into AI technology too much, it threatens to displace iPhone's iOS software. And AI apps that could order Ubers or make calendar appointments could disrupt Apple's App Store, which generates $24 billion in sales every year.

Despite these risks, Apple needs to act to avoid becoming obsolete or overly dependent on other Big Tech companies. They aim to develop their proprietary AI system and hope that creating their own servers will save money and ensure consistency. However, relying on an in-house AI system could increase the risk of errors.

Takeaway: Insiders say that when Apple launches the revamped Siri next month, the company is going to focus on making current capabilities better, rather than trying to play catch-up to ChatGPT. And Apple is betting that people will see its technology as the private option since requests are processed on your iPhone, rather than in a far-away data center. It’s risky for sure - and AI is sort of a d-mned if you do, d-mned if you don’t situation for Apple.

PRESENTED BY MOSAIC

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HEADLINES

Top Reads

  • DOJ says Boeing breached 2021 agreement, shielding it from criminal charges (CNBC)

  • AMC set to cash in on meme stock traders driving shares higher (YF)

  • Fed Chair Powell says inflation has been higher than thought (CNBC)

  • Google rolls out its most powerful AI models with competition heating up (CNBC)

  • OpenAI co-founder Ilya Sutskever says he will leave the startup (CNBC)

  • What the meme stock surge is telling us about the economy (Axios)

  • The streaming wars are over (YF)

  • Map reveals best NYC neighborhoods for singles (NYP)

  • Private equity escapes major antitrust lawsuit (Axios)

  • Wholesale prices rose 0.5% in April, more than expected (CNBC)

  • GameStop's stock surge is a long way from 2021 meme-stock frenzy (YF)

CAPITAL PULSE

Markets Rundown

Nasdaq closes at a record high, meme stocks surged again ahead of inflation data.

Movers & Shakers

  • (+) GameStop ($GME) +60% after meme stock surge continued.

  • (+) On Holding ($ONON) +18% after the maker of On Cloud shoes posted a revenue beat.

  • (–) Alibaba ($BABA) -6% after the Chinese technology company posted a drop in net income.

Private Dealmaking

  • Uber bought the Taiwan unit of Foodpanda for $950 million

  • Warburg Pincus bought the affordable housing arm of Shriram Finance for $555 million

  • KKR bought IQGeo Group, a geospatial software provider, for $394 million

  • Bot Co, a robotics startup, raised $150 million

  • CRMBonus, a marketing automation platform, raised $75 million

  • Kings League, a Spanish soccer competition, raised $65 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

How Emotions Are Made

The science of emotion is in the midst of a revolution on par with the discovery of relativity in physics and natural selection in biology.

Leading the charge is psychologist and neuroscientist Lisa Feldman Barrett, whose research overturns the long-standing belief that emotions are automatic, universal, and hardwired in different brain regions.

Instead, Barrett shows, we construct each instance of emotion through a unique interplay of brain, body, and culture.

A lucid report from the cutting edge of emotion science, How Emotions Are Made reveals the profound real-world consequences of this breakthrough for everything from neuroscience and medicine to the legal system and even national security, laying bare the immense implications of our latest and most intimate scientific revolution.

“An emotion is your brain’s creation of what your bodily sensations mean, in relation to what is going on around you in the world.”

DAILY VISUAL

Credit Delinquency Spikes

Share of credit card balances transitioning into delinquency

Source: Axios

PRESENTED BY PERCENT

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DAILY ACUMEN

Invention or Discovery

“We can agree that Isaac Newton didn’t invent gravity. It was here all along, but he gets some credit for naming it and describing it.

And Columbus definitely didn’t discover North America. There had been people living here for tens of thousands of years before he arrived.

After Niels Bohr began describing quantum mechanics, the atomic bomb became inevitable. The laws of physics combined with the game theory of competitive sovereign nations meant that sooner or later, it would be discovered.

On the other hand, pizza, rap music and bean-to-bar chocolate are all inventions. The novelty, cultural insight and persistence it took to craft and share these ideas weren’t inevitable at all.

Scientists mostly discover, engineers and artists invent.”

Source: Seth’s Blog

ENLIGHTENMENT

Short Squeez Picks

MEME-A-PALOOZA

Memes of the Day

 

 

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