June 10, 2020
Image: Allstrak, via Wikimedia Commons
Good morning! This Wednesday, why some investors like companies outside of tech hubs, Arm and Arm China disagree about who's in charge, and Microsoft's AI journalist has a predictable problem. Want Index in your inbox each morning? Subscribe here.
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Yesterday, we talked about how some tech talent seems to be leaving Silicon Valley for cheaper, more spacious locales. In the years to come, that talent dispersion could have big ramifications for the geography of tech entrepreneurship.
Such companies "present low risk, medium-high reward profiles" to investors, Pacitti says — and as investors recalibrate their risk-reward profiles amid economic turmoil, they might gravitate toward companies outside major tech hubs.
In the immediate future, Pacitti sees a different phenomenon happening.
In a previous life, I started a company that used AI to write articles. It quickly became clear that wouldn't work, so I ditched the company and started writing articles myself. It's good to know that I'm not the only one who's had struggles here: Microsoft, which recently said it would lay off a bunch of journalists because an AI algorithm can do their jobs, is under fire for picking an image of the wrong mixed-race singer to illustrate an article about the band Little Mix. The algorithm then started covering its own mistake, forcing the remaining human staff to intervene. If only Microsoft had asked me for help — I'd have told them not to bother using AI in the first place.