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Microsoft Plans Metaverse Dominance with Activision Blizzard

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Software giant, Microsoft is planning to dominate the metaverse with its move to acquire Activision Blizzard, a game development and interactive entertainment content publisher, in a mega deal.

This is according to market analyst firm GlobalData, after the US-headquartered software firm announced it will acquire Activision Blizzard for $95 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash.

This transaction has become the biggest tech merger and acquisition deal in history.

In making the announcement, Microsoft said the acquisition “will provide building blocks for the metaverse”.

Rupantar Guha, principal analyst at GlobalData’s thematic team, says taking part in what is the biggest tech merger and acquisition to date reflects Microsoft’s desire to dominate the metaverse.

“The company is focused on acquiring both Activision’s communities and content – two essential parameters for success in the metaverse. Activision’s popular games franchises Call of Duty and Overwatch, and the communities it commands, will position Microsoft as a leader in the metaverse.”

The metaverse is a virtual reality (VR) space in which users can interact with a computer-generated environment and other users.

According to Statista, as of October 2021, the total market capitalisation of Web 2.0 metaverse companies was $14.8 trillion.

It notes that for gaming and eSports and also Facebook (now known as Meta after an October 2021 restructuring and pivot to VR), this figure sits much lower at $1.98 trillion and $0.90 trillion, respectively.

Guha notes Microsoft is formidable competition for Meta, Epic Games, Tencent and Roblox, all of which are scrambling for dominance in this emerging mataverse theme.

“While the metaverse is still largely conceptual, Microsoft’s strength in underlying themes such as artificial intelligence, augmented reality, virtual reality and cloud computing give it a leadership position in this theme.”

He believes Activision’s games will help Microsoft create metaverse experiences and provide an established global consumer base to test and market them.

“Microsoft ranks second out of 44 companies in GlobalData’s gaming thematic sector scorecard, which ranks companies based on their leadership in the 10 themes that matter most to the gaming industry – generating a leading indicator of future performance. Microsoft is second only to Tencent, while Activision Blizzard ranks 13th on the scorecard.

“Following the acquisition, Microsoft will gain a dominant position in eSports, a growing theme where it has struggled to make a mark in the past. Additionally, Activision is a mobile gaming leader with plans to launch more mobile titles in the future. The takeover will strengthen Microsoft’s position in the mobile gaming market, which will be worth $272 billion by 2030, according to GlobalData forecasts.”

When the transaction closes, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony, says the software firm.

 


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E-Business

Schmidt, Ex Google Chief Says AI Risky in Terrorist Hands

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Eric Schmidt, former Google CEO
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Eric Schmidt, former Google CEO has expressed concerns about the extreme risks posed by artificial intelligence (AI) falling into the hands of terrorists or rogue states.

Schmidt, Ex Google Chief Says AI Risky in Terrorist Hands

Eric Schmidt, former Google CEO

He warned that nations such as North Korea, Iran, and Russia could adopt AI technologies to develop weapons capable of causing significant harm, including biological weapons.

Schmidt urged governments to oversee private tech companies, emphasising, “The real fears I have are not the ones most people discuss about AI, I talk about extreme risk.”

“I’m always worried about an ‘Osama Bin Laden’ scenario, where truly evil individuals take control of some aspect of modern life to harm innocent people,” he added.

With private companies driving AI advancements, he stressed the need for careful government monitoring and regulation. “It’s really important that governments understand what we’re doing and keep their eye on us,” he said.

His remarks followed a two-day AI summit in Paris, where the UK and the U.S. declined to sign a communiqué outlining the future direction of AI. The declaration on “inclusive and sustainable artificial intelligence for people and the planet” was endorsed by 57 countries, including India, China, the Vatican, the EU, and the African Union Commission.

The UK justified its decision, stating that the agreement lacked “practical clarity” on global AI governance and national security concerns.

Schmidt supports U.S. export controls restricting the sale of advanced AI microchips to certain countries, aiming to slow adversaries’ progress in AI research.

He also highlights the importance of international collaboration on AI safety, suggesting that cooperation with nations like China is essential to addressing global AI challenges.

 

 


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OpenAI CEO Rejects $97.4Bn Takeover Bid from Elon Musk

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Sam Altman, chief executive of ChatGPT-owner OpenAI
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Sam Altman, chief executive of ChatGPT-owner OpenAI, has firmly declared the company “not for sale” following a $97.4bn (£78.4bn) takeover bid from a consortium led by Elon Musk.

OpenAI CEO Rejects $97.4Bn Takeover Bid from Elon Musk

Elon Musk

Speaking at the AI Action Summit in Paris, Altman emphasised OpenAI’s mission to develop AGI (artificial general intelligence) for the benefit of humanity.

Marc Toberoff, attorney for Elon Musk, confirmed the bid submission on Monday.

In response, Altman humorously offered to buy Twitter for $9.74 billion on Musk’s platform.

Unlike many tech giants, OpenAI is not publicly traded but operates through a complex partnership between non-profit and for-profit entities.

Musk aims to return OpenAI to its non-profit roots, despite owning a rival firm, xAI.

Christie Pitts, a tech investor, expressed scepticism about Musk’s intentions, noting his competitive interests.

Altman echoed this sentiment, suggesting Musk’s move disregards OpenAI’s mission.

Altman, who holds no stock in OpenAI, advocates transforming the organisation into a fully for-profit company to raise more funds for AI research.

Although the board has the final say, the $97.4bn offer falls short of OpenAI’s previous $157bn valuation and rumoured $300bn in future funding talks.

Toberoff stated the consortium might increase their bid. Meanwhile, OpenAI is collaborating with Oracle, a Japanese investment firm, and an Emirati sovereign wealth fund on “The Stargate Project,” a $500 billion AI infrastructure initiative announced by President Donald Trump.

 

 

 

 


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Adobe Launches AI Video Tool to Compete with OpenAI

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Adobe yesterday released the first public version of an artificial intelligence tool that can generate video clips and revealed how much it will charge, but said it will not set pricing for major users such as studios until later this year.

The Firefly Video Model, as Adobe is calling the service, will compete against Sora, a model developed by ChatGPT creator OpenAI, and startup Runway, both of which currently offer video-generation services. Facebook owner Meta Platforms has also developed a video-generation AI model but has not given a timeline for when it will be released.

Adobe’s model differs from its rivals because it is geared toward generating clips that will fit into how film and television studios use Premiere Pro, its flagship video editing software.

To that end, many of the features that Adobe is emphasizing revolve around feeding existing shots into the video model and asking it to generate clips that fix or expand on shots that were taken on a real production set but that did not come out quite right.

Adobe said the service will generate five-second clips at 1080p resolution. While that is shorter than the clips of up to 20 seconds generated by OpenAI’s service, Adobe executives said the majority of individual clips in most productions are only three seconds.

Adobe said a user can generate 20 clips per month for $9.99 and 70 clips for $29.99. That compares with 50 videos for $20 per month with OpenAI’s plan at lower resolution and a $200 OpenAI plan that can handle longer, higher resolution videos.

Adobe is also working on a “Premium” pricing plan for studios and other high-volume video users and will release those pricing details later this year. Alexandru Costin, Adobe’s vice president of generative AI, said the company is working to generate 4K video and will remain focused on quality rather than longer clips.

“We actually think that great motion, great structure, great definition scheme, making the actual clip look like it was film, is more important than making a longer clip that’s unusable,” Costin told Reuters.

 


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