ThousandEyes, Cisco’s internet monitoring division, has introduced a new suite of AI-driven features known as Digital Experience Assurance, or DXA, on Tuesday 4th June 2024.
The firm asserts that this new AI technology will allow customers to not only monitor but also automatically address issues affecting network quality.
Describing itself as the ‘Google Maps’ of the internet, Cisco ThousandEyes offers a comprehensive, end-to-end perspective of every user and application across all networks.
Established 15 years prior, the company has been heavily investing in AI technology in recent years.
ThousandEyes is now implementing significant AI-centric modifications to its platform, which are designed to enhance its clients’ oversight of network quality and robustness.
Apple and generative AI technology is a topic that has been generating a lot of interest and speculation lately.
According to various reports, Apple is working on developing its own large language model and chatbot, which could potentially enhance its products and services with new features and capabilities. However, some analysts and experts have also raised questions about whether Apple has missed an opportunity to be a leader in the generative AI field, as it seems to be lagging behind its competitors such as Google, Microsoft, and OpenAI.
Apple uses AI in its products but hasn’t launched a generative AI product along the lines of OpenAI’s ChatGPT or Google Bard. Instead, Apple’s AI is used for improving photos and autocorrecting text.
$1 billion per year plan
Apple is on track to spend $1 billion per year on developing its generative artificial intelligence products, Bloomberg reported.
Apple is looking to use AI to improve Siri, Messages and Apple Music.
The spending comes as the company plays catch-up to some competitors who have already debuted new AI products and features, such as Google, Microsoft and Amazon.
Apple was caught flat-footed when ChatGPT and other AI tools took the technology industry by storm.
Generative AI
Generative AI is a subfield of artificial intelligence that focuses on creating content such as text, images, videos, music, and more, based on data and algorithms. One of the most popular examples of generative AI is ChatGPT, a chatbot that can respond to questions and other prompts in a natural and human-like way.
Watercolour artwork impression – ChatGPT was released by OpenAI in 2022, and since then, it has been widely used and improved by various companies and researchers.
ChatGPT was released by OpenAI in 2022, and since then, it has been widely used and improved by various companies and researchers.
Apple slow response
Apple, on the other hand, has been relatively quiet about its generative AI efforts, until recently. In October 2023, Bloomberg reported that Apple was internally testing a ‘ChatGPT-like’ chatbot nicknamed ‘Apple GPT’, but it had not devised a clear strategy for releasing generative AI tools to the public. Apple’s CEO Tim Cook also confirmed that the company was working on generative AI for years, but it was approaching it ‘really thoughtfully and think about it deeply’ because of the potential risks and challenges.
Potential challenges Apple faces in developing and deploying generative AI
Privacy
Apple has always been more cautious than its competitors in handling user data, and it has built its reputation on being a privacy-focused company. However, generative AI requires a lot of data to train and improve its models, which could pose a dilemma for Apple. How can it balance the need for data with the respect for user privacy? How can it ensure that its generative AI does not leak or misuse personal information?
Design
Apple is known for its elegant and intuitive design philosophy, which applies to both its hardware and software products. However, generative AI is a complex and unpredictable technology, which could challenge Apple’s design principles. How can it make its generative AI features easy to use and understand for its customers? How can it avoid confusing or misleading users with its generative AI outputs?
Ethics
Apple has always been mindful of the social and ethical implications of its products, and it has often taken a stance on issues such as human rights, environmental sustainability, and diversity. However, generative AI could raise new ethical concerns, such as bias, misinformation and manipulation. But then that is a common problem for all generative AI systems.
Generative AI could raise new ethical concerns, such as bias, misinformation and manipulation.
These are some of the questions that Apple needs to answer before it can launch its generative AI products to the public. It is possible that Apple is taking its time to address these issues carefully and thoroughly, as it has done in the past with other technologies such as Face ID or Apple Pay. However, it is also possible that Apple has missed an opportunity to be a pioneer in the generative AI field, as it has done in the past with other technologies such as smart speakers or cloud computing.
While Apple is working on its generative AI projects internally, its competitors are already offering generative AI.
Google
Google has integrated its large language model LaMDA into various products and services, such as Google Assistant, Google Photos, Google Docs, Google Translate etc. LaMDA can generate natural and conversational responses to any query or prompt, as well as create images and videos based on text descriptions.
Microsoft
Microsoft has acquired OpenAI’s ChatGPT technology and made it available through its Azure cloud platform. ChatGPT can be used by developers and businesses to create chatbots, voice assistants, content generators, and more. Microsoft has also integrated ChatGPT into some of its products such as Outlook, Teams, PowerPoint, and more.
Amazon
Amazon has launched Alexa Conversations, a feature that allows Alexa users to have more natural and engaging conversations with the voice assistant. Alexa Conversations can also leverage Amazon’s vast e-commerce data to provide personalized recommendations and suggestions to users.
These are just some examples of how generative AI is being used by Apple’s competitors.
Robot chatting to human chatbot online
Apple has missed an opportunity to be a leader in the generative AI field by being too slow or too cautious in developing and deploying its own generative AI products.
However, it is highly likely that Apple is waiting for the right moment to surprise everyone with its innovative and unique generative AI features that will set it apart from its competitors.
The Magnificent Seven is a term to describe seven tech’ stocks that have been surging in 2023.
Meta Platforms (formerly Facebook), the social media giant that also owns Instagram, WhatsApp, and Oculus.
Apple, the maker of the iPhone, iPad, Mac, Apple Watch, AirPods, and other popular devices and services including cloud and Apple TV streaming service.
Amazon, the e-commerce leader that also operates AWS, Prime Video, Alexa, and Whole Foods.
Alphabet, the parent company of Google, YouTube, Gmail, Google Cloud, and Waymo.
Microsoft, the software company that owns Windows, Office, Azure, LinkedIn, Xbox, and Teams.
Nvidia, the semiconductor company that produces graphics cards, gaming devices, data center solutions, and AI platforms.
Tesla, the electric vehicle maker that also develops solar panels, batteries, and autonomous driving technology.
Dominant
These seven stocks are considered to be dominant in their respective fields and have strong growth prospects driven by innovation and artificial intelligence (AI).
They have outperformed the broader market and attracted many investors who are looking for exposure to the tech’ sector. Some analysts believe that these stocks will continue to lead the market in the future, while others caution that they may face regulatory challenges, competition, or valuation issues.
Approximate combined market cap of the Magnificent Seven tech stocks
The approximate combined market cap value of the Magnificent Seven as of September 2023 is approximately $11.8 trillion.
Apple: $2.5 trillion
Microsoft: $2.3 trillion
Alphabet: $1.9 trillion
Amazon: $1.7 trillion
Nvidia: $0.8 trillion
Meta Platforms: $0.9 trillion
Tesla: $0.7 trillion
Note that these values will change over time as the stock prices fluctuate.
A way to trade the tech sector is through funds
There are many funds that can trade tech stocks, depending on your investment objectives, risk tolerance, and preferences.
Technology mutual funds: These are funds that invest in a diversified portfolio of technology companies across different industries, such as software, hardware, internet, cloud, biotech, and more. Technology mutual funds can offer exposure to the growth potential of the tech sector, as well as reduce the volatility and risk of investing in individual stocks.
Some examples of technology mutual funds are Fidelity Select Technology Portfolio (FSELX), Columbia Global Technology Growth Fund (CGTYX), and Schwab U.S. Large-Cap Growth Index Fund (SCHG).
Which tech fund to invest in?
Technology exchange-traded funds (ETFs): These are funds that track an index of technology stocks and trade on an exchange like a stock. Technology ETFs can offer low-cost and convenient access to the tech sector, as well as allow investors to choose from different themes, such as cybersecurity, artificial intelligence (AI), cloud computing and more.
Some examples of technology ETFs are Invesco QQQ Trust (QQQ), Technology Select Sector SPDR Fund (XLK), and VanEck Vectors Semiconductor ETF (SMH).
Technology index funds: These are funds that replicate the performance of a specific technology index, such as the Nasdaq 100, the S&P 500 Information Technology Index, or the Morningstar U.S. Technology Index. Technology index funds can offer broad and passive exposure to the tech sector, as well as low fees and high tax efficiency.
Some examples of technology index funds are Fidelity NASDAQ Composite Index Fund (FNCMX), Vanguard Information Technology Index Fund Admiral Shares (VITAX), and iShares Morningstar U.S. Technology ETF (IYW).
NOTE: These are not recommendations. Investments may go up or down. Your money is at risk!
The U.S. will ban American investment in some areas of China’s high-tech sector, including artificial intelligence, adding to strained relations between the two superpowers.
U.S. firms will also be invited to disclose what investments they make in China in high-tech sectors.The much-anticipated move gives the U.S. government new power to screen foreign dealings by private companies. The U.S. said the measure would be narrowly targeted. However, it is poised to further chill economic relations between the world’s two largest economies. China has reportedly said it was ‘very disappointed‘. The U.S. ‘has continuously escalated suppression and restrictions on China‘. He added that White House claims that the US was not seeking to hurt China’s economy or separate the two countries did not match its actions. ‘We urge the US side to honour its words‘.
Biden order
The order by U.S. President Biden formally kicks off the push to introduce rules to restrict, even prevent American businesses from investing in firms from ‘countries of concern‘ that are active in advanced semiconductors, quantum computing and certain areas of artificial intelligence.
The government will also require U.S. firms to notify the Treasury Department of investments in firms working on a wider range of artificial intelligence and semiconductor technology.
U.S. restriction on AI related tech knowledge to China
The rules are not expected to apply to ‘portfolio’ investments, in which firms invest passively in companies via the stock market, but are focused on active investments made by private equity and venture capital businesses. They will now enter a public ‘reflection’ period, which is expected to further clarify what kinds of investments are off-limits. The rules are not expected to go into effect for sometime yet. This new ‘order’ is quite a big deal.
In a briefing with reporters, senior administration officials said the measure was a ‘national security action, not an economic one‘. They said the U.S. remained committed to open investment.
Investment control
Controls on outbound investment are rare among advanced economies, currently present only in Japan and Korea, according to a 2022 report.
In the U.S., prior restrictions on China trade have relied on limiting sales of sensitive technology by U.S. firms and screening Chinese investments in American companies. The Trump administration had also barred investments in firms tied to China’s military.
The latest measure has widespread support in Washington, where it is seen as fixing a regulatory gap concerning financial flows that risks allowing American money and know-how to to flow into China.
International support
The U.S. has been trying to build international support for the investment curbs with some signs of success.
Prime Minister Rishi Sunak in May 2023 said the UK government would consider curbs on outbound investment; the European Commission put forward a proposal focused on investments in sensitive technologies earlier this summer. It is not clear how significantly the order would affect flows of investment.
China was the number two destination for foreign investment in 2022, behind the U.S., but many reports suggest money flowing into the country from the U.S. and elsewhere has dropped sharply as geopolitical relations sour. In the UK, a recent survey by the Institute of Directors found that one in five UK importers had already switched investments away from the country due to geopolitical tensions.
Gallium and Germanium considered critical elements required in the production of microchips
Treasury Secretary Janet Yellen, who visited China in July 2023 in an attempt to ease tensions, said last month she did not think the coming curbs would have a fundamental impact on the investment climate in the country.
Will these measures likely damage the U.S. in the future by escalating issues and restricting the U.S. from other shared advancements in technology – only time will tell.
Tech’ rivalry
U.S. and China are two of the world’s leading powers in artificial intelligence (AI) and semiconductors, which are essential components for many AI applications such as self-driving cars, smart phones, and cloud computing. However, the two countries have also been engaged in a fierce competition and rivalry over these technologies, as they seek to gain an edge in innovation, security, and economic growth. Some of the issues that have caused tensions between U.S. and China include trade disputes, intellectual property theft, cyberattacks, human rights violations, and military expansion.
AI chips
AI semiconductors are designed to perform complex calculations and tasks that require high levels of intelligence, such as natural language processing, computer vision, and machine learning.
These chips can be classified into two types: general-purpose chips that can run various AI algorithms, and specialized chips that are optimized for specific AI functions or domains.
