On the show today, Middle Eastern sovereign wealth funds have parked a whole lot of money in Silicon Valley. Saudi Arabia’s Public Investment Fund, for one, spent more than $31 billion on 49 venture deals, up 33% in 2023. Why does the tech industry find it so hard to break up with Middle East money? Plus, Netflix changes up its business model — again. We look at why the streaming giant sees even more ads in its future. But first, job cuts continue across the tech landscape. Even TikTok, with its $225 billion valuation and 150 million active users in the U.S. alone, is letting people go. Marketplace’s Lily Jamali is joined by Natasha Mascarenhas, reporter at The Information, for her take on these stories.

Layoffs continue, Silicon Valley renews romance with Middle East money and why Netflix is retiring its no-ads basic tier

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On this week’s Tech Bytes: Week in Review, Senate Majority Leader Chuck Schumer is calling for a heap of new spending on artificial intelligence research. We’ll look at where the proposed $32 billion annually is likely to go. And some of the biggest players in AI tried to outdo one another this week. OpenAI said it’s giving ChatGPT an upgrade and a personality while Google is trying to remake search with its AI model, Gemini. Marketplace’s Lily Jamali spoke with Anita Ramaswamy, financial analysis columnist at The Information, for her take on these stories.
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Tech Bytes – Week in Review: Google doubles down on AI, ChatGPT gets chatty and Congress charts a path for AI regulation


The whole digital economy runs through hundreds of thousands of miles of communication cables no bigger than a garden hose, deep on the ocean floor. So what happens when they break? And they do break, about once every other day, thanks to fishing trawlers or natural disasters. That’s when you call a repair crew of engineers, geologists, marine construction specialists and more who often spend months at sea repairing cables. This vital industry is largely invisible and facing some big challenges. Marketplace’s Meghan McCarty Carino spoke with Josh Dzieza, feature writer and investigations editor at The Verge, who did a deep dive into the industry and those challenges.
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A vital, mostly invisible undersea industry is facing a labor shortage


This week, media executives have been busy trying to impress advertisers at the annual “upfronts,” where major TV networks showcase their stars, new programs and the potential size of their audiences. It’s a show in its own right. “Tonight Show” host Jimmy Fallon did his version of Beyonce’s “Texas Hold ‘Em” at NBC’s upfront Monday. But this year, Big Tech is looking to cash in. Marketplace’s Lily Jamali spoke about it with Reuters reporter Sheila Dang, who said ad spending on digital has surpassed that of traditional TV for the first time.
The next $50,000 in donations to Marketplace will be matched, thanks to a generous gift from Dr. Joe Rush of Florida. Give now and double your impact.
 


Digital ad spending streams past traditional TV


A couple of weeks ago, Marketplace’s China correspondent Jennifer Pak noticed a video deepfake of the Hollywood actor Chris Evans on social media. The AI-generated Evans explains in Chinese how money is at the root of life’s problems. It’s part of a recent trend on mainland China, where deepfakes of foreigners give advice, discuss politics and sell goods online. Marketplace’s Lily Jamali spoke with Pak about what’s behind the trend and later, the state of online misinformation in China.
This conversation was part of “Marketplace Tech’s” limited series, “Decoding Democracy.” Watch the full episode here or on our YouTube channel.
The next $50,000 in donations to Marketplace will be matched, thanks to a generous gift from Dr. Joe Rush of Florida. Give now and double your impact.


Why deepfakes of foreigners are selling goods on Chinese social media


Early in the pandemic, many big tech companies based in Silicon Valley exited California, fleeing the high overhead necessary to do business there. One city — Austin, Texas — was consistently tagged as the top destination. The Texas capital offered lower costs, especially in regard to housing and taxes. Another draw for companies: the state’s more lax approach to regulation. Well, after a massive influx, the “Texas miracle,” with Austin at its epicenter, is losing some of its luster. In recent weeks, Tesla, which moved its headquarters from Silicon Valley to Austin in 2020, announced it’s laying off 2,700 workers there. And software giant Oracle, which relocated to Austin at about the same time, is moving its headquarters again, this time to Nashville, Tennessee. Last week, at the Milken Institute Global Conference in Los Angeles, Marketplace’s Lily Jamali asked Austin Mayor Kirk Watson about the state of tech in his city.
The next $50,000 in donations to Marketplace will be matched, thanks to a generous gift from Dr. Joe Rush of Florida. Give now and double your impact.
 


Layoffs continue, Silicon Valley renews romance with Middle East money and why Netflix is retiring its no-ads basic tier

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