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Tech Market Values Fall on AI Costs and Recession Fears; Eli Lilly, Berkshire Gain

]The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights
]The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights
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Tech Market Values Fall on AI Costs and Recession Fears; Eli Lilly, Berkshire Gain

]The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights
]The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights

Market values of major tech firms declined in August amid concerns over escalating artificial intelligence infrastructure costs and rising recession risks that would make the stocks particularly vulnerable during a market correction.

Last month, Alphabet Inc's lost 4.7% of its market value as a slowdown in YouTube's advertising sales fuelled concerns about its earnings. A US judge's ruling that Google had violated antitrust laws and the emergence of new competition from OpenAI, which is developing an AI-based search engine prototype, also contributed to its shares' decline.

Amazon.com Inc's market value fell 4.5%, affected by slowing online sales.

Tesla's market capitalisation fell 7.7% last month after weaker Q2 earnings and following the news that Canada planned a new 100% tariff on Chinese-made electric vehicles, Reuters reported.

The world's most valuable automaker started shipping Shanghai-made EV's to Canada last year and Ottawa's plans raised concerns about the potential profit impact of exporting from its higher-cost US production base.

Meanwhile, Nvidia's market value fell in the last week of August by 7.7% to $2.92 trillion, after it projected third-quarter gross margins below market estimates and reported revenues that only met expectations, disappointing investors who were expecting a stronger performance.

Nvidia, which commands more than 80% of the AI chip market, stands in a unique position as both the largest enabler as well as beneficiary of surging AI development.

On a positive note, US drugmaker Eli Lilly's market value surged nearly 20%, leading market gainers, driven by robust sales and the launch of a weight-loss drug that significantly reduces the risk of developing type 2 diabetes in overweight adults.

Berkshire Hathaway's market value closed above $1 trillion for the first time at the end of August, reflecting investor confidence in the conglomerate that Warren Buffett built over nearly six decades into what many consider a proxy for the US economy.

Meta's market value also climbed nearly 10% after it beat market expectations for its second-quarter revenues and forecast strong revenue growth in the July-September quarter, indicating that strong digital ad spending on its platforms could offset the costs of its AI investments.

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Technology

KAUST Scientists Develop AI-Generated Data to Improve Environmental Disaster Tracking

King Abdullah University of Science and Technology (KAUST) logo
King Abdullah University of Science and Technology (KAUST) logo
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KAUST Scientists Develop AI-Generated Data to Improve Environmental Disaster Tracking

King Abdullah University of Science and Technology (KAUST) logo
King Abdullah University of Science and Technology (KAUST) logo

King Abdullah University of Science and Technology (KAUST) and SARsatX, a Saudi company specializing in Earth observation technologies, have developed computer-generated data to train deep learning models to predict oil spills.

According to KAUST, validating the use of synthetic data is crucial for monitoring environmental disasters, as early detection and rapid response can significantly reduce the risks of environmental damage.

Dean of the Biological and Environmental Science and Engineering Division at KAUST Dr. Matthew McCabe noted that one of the biggest challenges in environmental applications of artificial intelligence is the shortage of high-quality training data.

He explained that this challenge can be addressed by using deep learning to generate synthetic data from a very small sample of real data and then training predictive AI models on it.

This approach can significantly enhance efforts to protect the marine environment by enabling faster and more reliable monitoring of oil spills while reducing the logistical and environmental challenges associated with data collection.

Technology

Uber, Lyft to Test Baidu Robotaxis in UK from Next Year 

A sign of Baidu is pictured at the company's headquarters in Beijing, China March 16, 2023. (Reuters)
A sign of Baidu is pictured at the company's headquarters in Beijing, China March 16, 2023. (Reuters)
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Uber, Lyft to Test Baidu Robotaxis in UK from Next Year 

A sign of Baidu is pictured at the company's headquarters in Beijing, China March 16, 2023. (Reuters)
A sign of Baidu is pictured at the company's headquarters in Beijing, China March 16, 2023. (Reuters)

Uber Technologies and Lyft are teaming up with Chinese tech giant Baidu to try out driverless taxis in the UK next year, marking a major step in the global race to commercialize robotaxis.

It highlights how ride-hailing platforms are accelerating autonomous rollout through partnerships, positioning London as an early proving ground for large-scale robotaxi services ‌in Europe.

Lyft, meanwhile, plans ‌to deploy Baidu's ‌autonomous ⁠vehicles in Germany ‌and the UK under its platform, pending regulatory approval. Both companies have abandoned in-house development of autonomous vehicles and now rely on alliances to accelerate adoption.

The partnerships underscore how global robotaxi rollouts are gaining momentum. ⁠Alphabet's Waymo said in October it would start ‌tests in London this ‍month, while Baidu ‍and WeRide have launched operations in the ‍Middle East and Switzerland.

Robotaxis promise safer, greener and more cost-efficient rides, but profitability remains uncertain. Public companies like Pony.ai and WeRide are still loss-making, and analysts warn the economics of expensive fleets could pressure margins ⁠for platforms such as Uber and Lyft.

Analysts have said hybrid networks, mixing robotaxis with human drivers, may be the most viable model to manage demand peaks and pricing.

Lyft completed its $200 million acquisition of European taxi app FreeNow from BMW and Mercedes-Benz in July, marking its first major expansion beyond North America and ‌giving the US ride-hailing firm access to nine countries across Europe.

Technology

Italy Fines Apple Nearly 100m Euros over App Privacy Feature

An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo Purchase Licensing Rights
An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo Purchase Licensing Rights
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Italy Fines Apple Nearly 100m Euros over App Privacy Feature

An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo Purchase Licensing Rights
An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo Purchase Licensing Rights

Italy's competition authority said Monday it had fined US tech giant Apple 98 million euros ($115 million) for allegedly abusing its dominant position in the mobile app market.

According to AFP, the AGCM said in a statement that Apple had violated privacy regulations for third-party developers in a market where it "holds a super-dominant position through its App Store".

The body said its investigation had established the "restrictive nature" of the "privacy rules imposed by Apple... on third-party developers of apps distributed through the App Store".

The rules of Apple's App Tracking Transparency (ATT) "are imposed unilaterally and harm the interests of Apple's commercial partners", according to the AGCM statement.

French antitrust authorities earlier this year handed Apple a 150-million euro fine over its app tracking privacy feature.

Authorities elsewhere in Europe have also opened similar probes over ATT, which Apple promotes as a privacy safeguard.

The feature, introduced by Apple in 2021, requires apps to obtain user consent through a pop-up window before tracking their activity across other apps and websites.

If they decline, the app loses access to information on that user which enables ad targeting.

Critics have accused Apple of using the system to promote its own advertising services while restricting competitors.