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“How to make it pay” – AI discussion at Davos

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While the streets of Davos are adorned with vibrant banners extolling the promise of artificial intelligence, executives attending the World Economic Forum have expressed their struggles in translating early AI demonstrations into profitable ventures.

The emergence of OpenAI’s viral ChatGPT triggered a frenzy of venture investments and prompted significant shifts within the world’s largest technology companies since late 2022.

However, at this year’s WEF meeting in Davos, several CEOs have voiced their reservations about the current state of generative AI.

AI letdown

Matthew Prince, CEO of cloud and internet security company Cloudflare, suggested that the coming months might feel like an “AI letdown.”

He echoed the sentiment among business leaders that while creating impressive AI demonstrations is feasible, the challenge lies in realizing substantial economic value.

ChatGPT’s rapid ascent is somewhat of an anomaly.

Within the first two months since its launch in November 2022, the chatbot amassed an estimated 100 million users, making it one of the fastest-growing applications in history.

It allowed users to generate content, from poems to school essays, and served as a creative partner for non-business-critical ideas, according to Victor Riparbelli, CEO of AI video generation startup Synthesia.

Not prepared

However, Riparbelli noted that the enterprise sector is not yet fully prepared for chat-based AI. One concern is the absence of a clear strategy to mitigate “hallucinations,” or the generation of false content by AI.

Businesses are also grappling with the challenge of preventing AI chatbots from perpetuating human biases and complying with regulations.

China’s Premier Li Qiang, speaking at Davos, emphasized the importance of ensuring that AI serves the common good while being appropriately governed due to the associated risks to security and ethics.

China’s President Xi Jinping has called for the United Nations to play a central role in AI discussions, as confirmed by U.N. Secretary-General António Guterres.

A survey conducted by consultancy BCG revealed that approximately 90% of 1,400 C-suite executives are either waiting for generative AI to move beyond the recent hype or are conducting limited experiments and pilot programs.

 

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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OpenAI releases GPT-5.1 with enhanced conversational features

OpenAI launches GPT-5.1, enhancing ChatGPT with personality controls and improved conversational abilities for paid users

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OpenAI launches GPT-5.1, enhancing ChatGPT with personality controls and improved conversational abilities for paid users

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In Short:
– OpenAI launched GPT-5.1 with two models to improve ChatGPT’s conversation and user control.
– The update, initially for paid users, addresses prior complaints and introduces adaptive reasoning and personality presets.
OpenAI launched GPT-5.1 today, featuring two upgraded models aimed at enhancing ChatGPT’s conversational abilities and providing users better control over its personality.The update started rolling out to paid subscribers on November 12, introducing GPT-5.1 Instant and GPT-5.1 Thinking, both designed to address complaints regarding the original GPT-5 release in August.

GPT-5.1 Instant is said to be “warmer by default and more conversational,” with early testers noting its playfulness while remaining clear and useful.

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The launch follows a backlash from users after GPT-5’s release, who criticized its “colder” tone and the removal of previous models like GPT-4o. OpenAI’s CEO, Sam Altman, admitted that discontinuing GPT-4o “was a mistake” and acknowledged the emotional attachment users had to specific models.

Adaptive Reasoning

GPT-5.1 Instant introduces adaptive reasoning, which helps it determine when to “think before responding” to complex questions.

This leads to marked improvements in mathematical and coding tasks. GPT-5.1 Thinking adjusts processing time based on the task, resulting in clearer explanations and improved ease of use for various tasks.

The new version includes six personality presets, allowing users to tailor interactions. OpenAI aims for the model to integrate cognitive and emotional intelligence effectively.

For now, the rollout is for paid users, with free access occurring soon. Both models will be available via API, and legacy models will remain accessible for three months.


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Apple postpones iPhone Air sequel due to poor sales

Apple delays iPhone Air 2 indefinitely after lacklustre sales of first model

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Apple delays iPhone Air 2 indefinitely after lacklustre sales of first model

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In Short:
– Apple has postponed the iPhone Air’s launch due to poor sales of the current model.
– Production of the iPhone Air will stop, with Foxconn and Luxshare ceasing manufacturing by November and October respectively.
Apple has delayed the launch of its second-generation iPhone Air, which was scheduled for fall 2026, due to disappointing sales of the current model that debuted two months ago, as reported by The Information.Engineers and suppliers have been informed that the iPhone Air will be removed from the production schedule without a new release date.

The decision coincides with a significant reduction in the production of the existing model. Foxconn is expected to cease all manufacturing by the end of November, while Luxshare will stop production by the end of October.

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Sales for the iPhone Air have not met Apple’s expectations since its launch in September. Foxconn has limited its production lines for the device, and future orders are projected to decrease significantly. A survey indicated nearly no demand for the iPhone Air, with consumers instead choosing the iPhone 17 and iPhone 17 Pro models.

Production Challenges

The underperformance of the iPhone Air continues a trend of failed attempts by Apple to add a fourth model to its lineup.

The iPhone mini was previously discontinued after poor sales, followed by the larger Plus models, which faced similar challenges.

Apple had intended to develop a lighter second-generation iPhone Air with improved specifications but may now reconsider its design approach. The company also has plans for a staggered launch of the iPhone 18 lineup set for 2026 and early 2027.


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Tech giants’ $47 billion AI infrastructure deals announced

Tech giants commit $47.7 billion to AI deals as demand for computing power soars and market diverges

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Tech giants commit $47.7 billion to AI deals as demand for computing power soars and market diverges

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In Short:
– Wall Street started November mixed as AI deals boosted tech stocks, especially Amazon’s share price after a major agreement.
– OpenAI plans $1.4 trillion investment for computing resources, with Big Tech predicting over $250 billion AI infrastructure spending this year.
Wall Street began the month with mixed performances as major artificial intelligence deals influenced tech stocks positively, while broader market indices diverged.
Amazon’s shares rose over 5% following a significant $38 billion cloud services agreement with OpenAI, contributing to gains for the Nasdaq despite a decline in the Dow.The seven-year collaboration with Amazon Web Services marks OpenAI’s first major partnership with AWS, offering access to Nvidia graphics processing units essential for its AI expansion.

Amazon commented on the soaring demand for computing power resulting from rapid AI advancements, aiming for full capacity deployment by the end of 2026.

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Microsoft also sealed a $9.7 billion agreement with IREN, highlighting the industry’s insatiable need for cloud capacity.

The collaborations depict Big Tech’s ongoing commitment to AI infrastructure, with significant investments aimed at catering to the escalating demand for computing resources.

Investment Perspective

OpenAI CEO Sam Altman revealed intentions to invest $1.4 trillion to create 30 gigawatts of computing resources.

Major players, including Microsoft, Alphabet, Amazon, and Meta, have adjusted their capital expenditure forecasts for 2025, anticipating AI infrastructure spending to surpass $250 billion this year.

Despite market caution regarding inflated valuations, analysts remain optimistic about growth in the sector. Even amidst fears of an AI bubble, industry leaders assert ongoing investments will continue to bolster market performance through 2026.


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