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Silicon Valleys’ industry monopoly is over

(TECH NEWS) For years Silicon Valley has been home to the leading tech companies but one leader believes the Valley is about to lose their monopoly.

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Peter Thiel, a leader in entrepreneurism and investment who made his career in Silicon Valley, has now said that he believes the Valley will no longer be monopolizing the tech industry moving forward.

The billionaire Thiel, who launched PayPal, was an early investor in AirBnB and Facebook, and launched software company Palantir Technologies, spoke at the Future Investment Initiative in Riyadh, Saudi Arabia last week and shared some of his opinions on the future of the tech world, specifically its future outside the small pocket of California we know as Silicon Valley.

“I have been investing in the technology space — entrepreneur and investor over the past 20 years in Silicon Valley — and within the area of IT, it has for the last 10, 15 years in the US and the world been extremely centered on Silicon Valley,” he said at the event.

“I think there are a lot of reasons for that, but the question is, ‘Where is the growth going to happen the next 10 years?’ And what I would tend to think is that it will be more diversified from just Silicon Valley.”

Thus far, Silicon Valley has dominated the industry due to a large concentration of driven entrepreneurs and the abundance of mentors. Even now, California sees a hugely disproportionate percentage of venture capital deals made, despite rising competition throughout the world.

Per the most recent data coming out of the 2017’s third quarter, provided by the National Venture Capital Association and Pitchbook, show a huge gap between California-based companies and their competition. New York, who had the second highest number of deals made in Q3, with 188, only reached 32 percent of the number of deals closed in California in that same time, who had 580.

Here, it is easy to limit our view to companies based in the United States. Thiel, however, believes that the next wave of technology will be the product of a more global perspective.

“There was something very paradoxical about it all being in Silicon Valley, because after all these Internet companies are global in scope,” Thiel says. “They can be built anywhere. You just need some talented people, some capital, the right governance structures and so it was always this very odd question, why all the companies of this new global technology were built in one specific place.”

He went on to say that he believes China will be a big player in tech because of some up-and-coming companies that are moving into that space and doing creative work. Not only will things grow in China, but Thiel comments, “I don’t think there is a single other place, it is not a specific city or specific country, but I think in general there is much opportunity outside of Silicon Valley.”

Thiel’s opinions certainly strike a chord; it is strange that the tech world has been so focused on one small space in California considering the global scale on which the internet and tech operates. While there is surely competition in Silicon Valley, a broadening of horizons in the tech world will only lead to higher quality and more efficient product being released to the market.

Will hails from Northern California, earned a B.A. in English from Texas A&M University, and now calls Austin, Texas home where he works at a tech startup. He likes riding his bike an ungodly amount of miles and his favorite aesthetic is an open road. If you see him around he'll likely be reading a classic American novel and drinking a Topo Chico.

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Degree holders are shifting tech hubs and affordability

(TECH NEWS) Tech hubs are shifting as degree holders move, but it’s causing some other issues and raising some interesting questions about the future of jobs.

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Bloomberg recently announced their annual “Brain” Indexes. The indexes are an annual reckoning of STEM (Science, Technology, Engineering and Mathematics) jobs and degree holders. The “Brain Concentration Index” approximates the number of people working full time in computer, engineering, and science jobs (including math and architecture.) It measures the median earnings for people in those jobs. It also counts how many people have a bachelor’s degree in a STEM field, or an advanced degree of any kind. It blends those things together to determine how “brainy” a city is.

Since they started in 2016, Boulder, CO has been at the top of the list. This year it’s followed by San Jose, CA, which many people might expect to be at the top. Many of the more surprising cities, like Ann Arbor, MI, Ithaca, NY, and even Lawrence, KS, are bolstered by the presence of a strong university.

It’s an interesting methodology. It’s worth noting that anyone with an advanced degree, whether it’s an MBA, a law degree, or a Ph.D. in literature, contributes to which city is a “tech hub.” It’s also worth noting how expensive many of these places are to live.

If you follow this kind of national data collection at all, you may also know that Boulder is one of the least-affordable cities in the country. So is the San Jose/Sunnyvale/Santa Clara metro area, with a median home price of 1.25 million dollars and a median household income of $117,474. (That means that the average mortgage is more than half of the average paycheck). However many people tech hubs like San Jose and San Francisco attract, they’re also hemorrhaging talent. Every day, 8 Californians move to Austin. Of the people who stay, more than half are thinking of moving.

They aren’t doing that for fun. As much flak as Californians get for gentrifying places like Austin, they’re being megagentrified out of their own homes. As salaries rise and CEO gigs attract the wealthy (and turn them into the Uberwealthy), the people who wait on tables or teach their children can’t afford to stay there anymore.

Speaking of people leaving, Bloomberg also measured what they call “brain drain,” the flow of advanced degree holders out of cities. They pair that with a decline in white-collar jobs and a decline in STEM pay to come up with their annual list. It includes places like Lebanon, PA and Kahului, HI.

All in all, it’s interesting information. But there are other factors at work that it can’t speak to. What does wage stagnation in the U.S. mean for the flow of education workers? If San Jose and San Francisco can be tech hubs based on the number of people with degrees, but people are still fleeing, what does that say about rankings like these? What human stories get lost in the shuffle? And is “tech hub” even something a city wants to be if that means running out of teachers (or making them sleep in garages)? Where does the next generation of tech hub workers come from?

Knowing the people behind the numbers makes it clear just what a mixed bag this is. Maybe we need more tech hubs like Lawrence, Kansas. Or maybe we need rent control. Or maybe we need to embrace remote work. Maybe there are no answers. As interesting as data like this is, there’s something sort of wistful about it, too.

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New Apple Watch is awesome, but past watches could be just as good for cheaper

(TECH NEWS) The Apple Watch Series 6 is a ridiculous display of self-flattery—but that doesn’t mean people won’t line up to buy it in droves.

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Apple Watch being worn on wrist showing weather for Montreal.

The Apple Watch has been the subject of everything from speculation to ridicule during its relatively short tenure on this planet. While most have nothing but praise for the most recent iteration, that praise comes at a cost: The Apple Watch’s ghost of Christmas past.

Or, to put it more literally, the fact that the Apple Watch’s prior version and accompanying variations are too good—and, at this point, too comparatively cheap—to warrant buying the most recent (and expensive) option.

Sure, the Apple Watch Series 6 has a bevy of health features—a sensor that can take an ECG and a blood oxygen test, to name a couple—but the Series 5 has almost everything else that makes the Apple Watch Series 6 “notable.” According to Gear Patrol, even the Series 4 is comparable if you don’t mind forgoing the option to have the Apple Watch’s screen on all of the time.

More pressingly, Gear Patrol points out, is the availability of discount options from Apple. The Apple Watch Series 3 and Apple Watch SE are, at this point, budget options that still do the job for smart watch enthusiasts.

Not to mention any Apple Watch can run updates can utilize Apple’s Fitness Plus subscription—another selling point that, despite its lucrative potential, doesn’t justify buying a $400 watch when a cheaper option is present.

It’s worth noting that Apple is no stranger to outdoing themselves retroactively. Every year, Apple’s “new” MacBook, iPhone, and iPad models are subjected to extensive benchmarking by every tech goatee around. And the conclusion is usually that buying a generation or two behind is fine—and, from a financial perspective, smart.

And yet, as the holidays roll around or the initial drop date of a new product arrives, Apple invariably goes through inventory like a tabby cat through unattended butter.

The Apple Watch is already a parody of itself, yet its immense popularity and subtle innovation has promoted it through several generations and a few spin-off iterations. And that’s not even including the massive Apple-specific watch band market that appears to have popped up as a result.

Say what you will about the Series 6; when the chips are on the table, my money’s on the consumers making the same decisions they always make.

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Microsoft acquires powerful AI language processor GPT-3, to what end?

(TECH NEWS) This powerful AI language processor sounds surprisingly human, and Microsoft has acquired rights to the code. How much should we worry?

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Code on screen, powering AI technology

The newly-released GPT-3 is the most insane language model in the NLP (natural language processor) field of machine learning. Developed by OpenAI, GPT-3 can generate strikingly human-like text for a vast range of purposes like bots and advertising, to poetry and creative writing.

While GPT-3 is accessible to everyone, OpenAI has expressed concerns over using this AI tech for insidious purposes. For this reason, Microsoft’s new exclusive license on the GPT-3 language model may be a tad worrisome.

First of all, for those unfamiliar with the NPL field, software engineer, and Youtuber, Aaron Jack, provides a detailed overview of GPT-3’s capabilities and why everyone should be paying attention.

Microsoft’s deal with OpenAI should come as little surprise since OpenAI uses the Azure cloud platform to access enough information to train their models.

Microsoft chief technology officer Kevin Scott announced the deal on the company blog this week: “We see this as an incredible opportunity to expand our Azure-powered AI platform in a way that democratizes AI technology, enables new products, services and experiences, and increases the positive impact of AI at Scale,” said Scott.

“Our mission at Microsoft is to empower every person and every organization on the planet to achieve more, so we want to make sure that this AI platform is available to everyone – researchers, entrepreneurs, hobbyists, businesses – to empower their ambitions to create something new and interesting.”

OpenAI has assured that Microsoft’s exclusive license does not affect the general public’s access to the GPT-3 model. The difference is Microsoft will be able to use the source code to combine with their products.

While OpenAI needs Azure to train these models, handing over the source code to another party is, to put it mildly, tricky. With the earlier GPT-2 model, OpenAI initially refused publishing the research out of fear it could be used to generate fake news and propaganda.

Though the company found there was no evidence to suggest the GPT-2 was utilized this way and later released the information, handing the key of the exponentially more powerful iteration to one company will undoubtedly hold ramifications in the tech world.

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