Business of Tech: Daily 10-Minute IT Services Insights

Cybersecurity startups are experiencing a significant revenue surge as threats associated with artificial intelligence continue to multiply. Companies like ChainGuard have reported a remarkable seven-fold increase in annualized revenue, reaching approximately $40 million, while Island anticipates its revenue will hit $160 million by the end of the year. The rise in cyber attacks, particularly a 138% increase in phishing sites since the launch of ChatGPT, has created a greater demand for cybersecurity solutions. A recent report from Tenable highlights that 91% of organizations have misconfigured AI services, exposing them to potential threats, emphasizing the urgent need for organizations to adopt best practices in cybersecurity.Intel is undergoing a strategic reset under its new CEO, Lip Bu Tan, who announced plans to spin off non-core assets to focus on custom semiconductor development. While the specifics of what constitutes core versus non-core assets remain unclear, this move aims to streamline operations and enhance innovation in the semiconductor space. However, Intel's past struggles with execution raise questions about the effectiveness of this strategy. The company must leverage its strengths while shedding distractions to remain competitive in the evolving semiconductor landscape.Google has made strides in email security by allowing enterprise Gmail users to apply end-to-end encryption, a feature previously limited to larger organizations. This democratization of high-security email comes in response to rising email attacks, enabling users to control their encryption keys and reduce the risk of data interception. Meanwhile, Apple has addressed a significant vulnerability in its iOS 18.2 passwords app that exposed users to phishing attacks, highlighting the importance of rapid response to security flaws.CrowdStrike and SnapLogic are enhancing their partner ecosystems to improve security operations and streamline integration processes. CrowdStrike's new Services Partner program aims to promote the adoption of its next-gen security technology, while SnapLogic's Partner Connect program focuses on collaboration with technology and consulting partners. Additionally, OpenAI has increased its bug bounty program rewards, reflecting the need for ongoing vigilance in cybersecurity as AI becomes more prevalent. The convergence of AI and cybersecurity presents both challenges and opportunities, necessitating proactive measures to safeguard sensitive information. Four things to know today 00:00 Cybersecurity Startups See Revenue Surge as AI Threats Multiply—Are We Prepared?04:44 Intel’s Strategic Reset: Spinning Off Non-Core Assets to Boost Custom Chip Development06:09 Google Brings Enterprise-Level Encryption to Gmail as Apple Patches Major iOS Vulnerability08:56 CrowdStrike and SnapLogic Step Up Partnerships While OpenAI Sweetens Bug Bounty Reward  Supported by:  https://syncromsp.com/  Join Dave April 22nd to learn about Marketing in the AI Era.  Signup here:  https://hubs.la/Q03dwWqg0  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

The economy is currently facing a challenging combination of slowing growth and rising inflation, which is impacting managed service providers (MSPs) and IT services firms. The Personal Consumption Expenditures Price Index has shown a significant increase, indicating heightened inflation, while consumer spending is weakening. This economic squeeze is forcing businesses to reassess their budgets, leading to a potential increase in demand for MSPs that can offer cost-effective solutions and efficiency improvements. As organizations seek to navigate these turbulent times, the need for integrated security platforms and open-source AI technologies is becoming increasingly critical.A recent survey by Flexera highlights a notable shift in how organizations, particularly small to medium-sized businesses, are turning to MSPs for public cloud management. The percentage of small businesses utilizing MSPs has risen from 36% to nearly 50%, reflecting a growing trust in these providers to manage complex cloud environments. Despite the increase in cloud spending, cost management remains a significant challenge, with many organizations identifying it as their top concern. This trend underscores the importance of differentiation among MSPs, as the market becomes more competitive.In the realm of technology advancements, Amazon is set to launch its new AI-enabled assistant, Alexa Plus, which will introduce various features aimed at enhancing user experience. Meanwhile, Microsoft is rolling out new AI tools for Microsoft 365 Copilot, designed to improve research and data analysis capabilities. These developments highlight the ongoing evolution of AI technologies and their practical applications in business settings. However, as new capabilities emerge, it is essential for businesses to focus on enhancing outcomes rather than getting caught up in the hype.Security threats continue to evolve, with a new phishing-as-a-service operation identified that employs advanced techniques to evade detection. Microsoft is also transitioning to passwordless authentication methods across its platforms, aiming to enhance user security for billions of users. The Pentagon has issued warnings regarding vulnerabilities in messaging apps like Signal, emphasizing the need for caution in communications. As these changes unfold, it is crucial for providers to assist clients in adapting to new security measures and to educate them on the benefits of transitioning to passwordless environments. Four things to know today 00:00 Economic Squeeze: Need Smart Moves as Costs Rise and Growth Slows05:35 MSPs See Surge in Cloud Management Demand07:38 Alexa Gets Smarter, Microsoft Gets Analytical09:44 Phishing Gets Sneaky with DoH, While Microsoft Says Bye-Bye to Passwords  Supported by:  https://getnerdio.com/nerdio-manager-for-msp/ Event: : https://www.nerdiocon.com/  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Sahil Agarwal, co-founder and CEO of Enkrypt.ai, discusses the critical importance of security and compliance in the realm of artificial intelligence (AI) models. His company focuses on helping enterprises adopt generative AI while managing the associated risks. Agarwal explains that the mission of Enkrypt.ai has evolved from developing encryption algorithms to creating comprehensive solutions that provide ongoing management and monitoring of AI applications. This shift aims to ensure that businesses can safely integrate AI technologies without exposing themselves to brand, legal, or security risks.Agarwal highlights the dual approach of Enkrypt.ai, which includes an initial risk assessment followed by continuous monitoring and management. The risk assessment involves simulating attacks on AI systems to identify vulnerabilities, while the ongoing management ensures that any identified risks are mitigated effectively. This iterative process creates a feedback loop that enhances the security posture of generative applications, allowing businesses to operate with greater confidence.The conversation also touches on the economic challenges surrounding generative AI, where many companies invest heavily in projects that struggle to reach production due to unresolved security and compliance issues. Agarwal notes that while there is a democratization of AI technology, the real value lies in how enterprises apply these models. He emphasizes the need for businesses to adopt a proactive approach to security, particularly as they scale their use of AI agents and chatbots.Finally, Agarwal addresses the pressing issue of data leakage, particularly when using third-party AI models. He advises organizations to keep sensitive data on the client side and to choose trusted solutions to mitigate risks. By implementing robust security measures and maintaining a vigilant posture, businesses can harness the power of AI while safeguarding their proprietary information.  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

AI is rapidly emerging as a significant revenue driver for managed service providers (MSPs), with a notable increase in expectations for AI-related revenue. According to recent data, 53% of MSPs anticipate substantial AI revenue this year, a significant rise from 32% the previous year. This shift is attributed to a growing understanding of AI's potential, particularly following the rise of generative AI technologies like ChatGPT. While some companies are genuinely building capabilities, others may still be caught up in the hype. The conversation also touches on the importance of integrating AI into existing services, such as cybersecurity and data management, as MSPs look to monetize these technologies.On the flip side, adversaries are also leveraging AI to enhance their tactics, particularly in social engineering and phishing campaigns. MacKenzie Brown from Blackpoint Cyber highlights that threat actors are using AI to improve their operational effectiveness, making their attacks more sophisticated. This raises concerns about the security posture of organizations that may not have robust data governance and identity management practices in place. As MSPs begin to adopt AI technologies, they must also ensure that their clients have the necessary security measures to protect against these evolving threats.The discussion further explores the ongoing challenges in cybersecurity, particularly regarding basic security practices that remain unaddressed. Misconfigurations in cloud environments continue to be a significant vulnerability, and many organizations still struggle with fundamental cybersecurity measures. Carolyn April emphasizes that while cybersecurity remains a critical revenue driver for MSPs, many are still operating at a basic level rather than advancing to more sophisticated security solutions. This gap presents both a challenge and an opportunity for MSPs to enhance their service offerings.Finally, the conversation touches on the implications of recent developments in cybersecurity policy and enforcement. The discussion highlights the importance of having consequences for breaches of cybersecurity laws, as a lack of enforcement can undermine the efforts of solution providers. Both MacKenzie and Carolyn agree that the current state of cybersecurity policy is crucial for the health of the industry, as it impacts how MSPs can effectively sell their services. The episode concludes with insights on the need for better education and talent development in the cybersecurity field to address these ongoing challenges.  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

CoreWeave has successfully launched its initial public offering (IPO), pricing shares at $40 and raising $1.5 billion, marking the largest tech offering in the U.S. since 2021. Despite initially targeting a higher share price, the final valuation of approximately $19 billion reflects a significant reduction in investor sentiment towards AI infrastructure. This IPO indicates a cautious optimism in the market, as CoreWeave capitalizes on the ongoing demand for GPU resources essential for AI development, particularly among smaller developers who cannot afford hyperscaler contracts. However, the reduced pricing raises questions about the sustainability of AI workload demand and the reliance on NVIDIA's supply chain.In the realm of AI communication, PwC has introduced AgentOS, a platform designed to enhance collaboration among AI agents within enterprises. After observing that many AI agents operate independently, PwC aims to create a more integrated environment that allows these agents to work together effectively. The platform supports major systems from companies like Anthropic, Google Cloud, and Microsoft Azure, enabling organizations to automate complex tasks more efficiently. This initiative highlights the current fragmentation in enterprise AI deployments and the need for improved interoperability among AI systems.Intel has also made strides in AI adoption with the launch of new initiatives targeting edge computing in industries such as retail and manufacturing. Their new offerings, including Intel Edge Systems and Edge AI Suites, aim to facilitate the integration of AI into existing infrastructures while addressing cost and performance challenges. By collaborating with partners like Cisco, Intel seeks to enhance real-time analytics and data privacy, emphasizing the importance of AI in low-power environments. These developments reflect a broader trend towards the evolution of AI infrastructure and its application across various sectors.As Microsoft celebrates its 50th anniversary, it highlights the economic opportunities generated through its extensive partner ecosystem. A recent survey indicates that for every dollar Microsoft earns, its partners earn significantly more, showcasing the value of collaboration in driving innovation. However, as Windows 10 approaches its end of support, small and medium-sized businesses face challenges in managing their IT infrastructure, particularly concerning legacy systems and cybersecurity vulnerabilities. The transition away from outdated operating systems presents a significant opportunity for IT service providers to offer essential services in asset management and endpoint protection, ensuring that businesses can navigate this complex landscape securely. Four things to know today 00:00 CoreWeave IPO Taps the Brakes on AI Hype—Still Pulls in $1.5B Backing for GPU-Powered Growth03:40 AI Agents Start Talking, Retail Shelves Get Smarter, and Accents Get a Makeover—Here Comes the New AI Stack07:48 Microsoft’s Still Making Money for Everyone—But Windows 10’s Exit Could Cost SMBs Big10:59 From Hotel Tasks to Missile Warnings, Who’s Watching the AI? A Deep Dive Into Control and Risk  Supported by:  https://www.huntress.com/mspradio/https://getflexpoint.com/msp-radio/  Event: : https://www.nerdiocon.com/  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Jeff Borello, CEO and co-founder of Andromeda Technology Solutions, shares insights into the managed services landscape, particularly focusing on the needs of manufacturing clients in the Midwest. With over 30 years of experience, Borello discusses the evolution of his company from a break-fix model to a pure managed services provider, emphasizing the importance of project delivery and cloud migration. He highlights the company's commitment to providing flat-rate monthly services while maintaining a strong professional services team to address complex technical needs.Borello notes that many potential clients often come to them already dissatisfied with their current managed service providers, primarily due to poor response times and unresolved issues. He explains that while customers may initially seek project work, the focus is on transitioning them to a managed service platform to better understand their needs. Cybersecurity is a significant concern, but many clients only prioritize it after experiencing an incident, leading to a challenging sales process that requires careful navigation.The conversation also touches on the internal operations of Andromeda, which has been recognized as one of the best places to work in Illinois. Borello discusses the importance of documenting processes and ensuring adherence to them, as well as the challenges of maintaining a strong company culture in a hybrid work environment. He emphasizes the need for a middle management layer to facilitate day-to-day operations, allowing leadership to focus on strategic growth.Looking ahead, Borello expresses a desire to streamline tools and integrate automation and AI into their operations while ensuring that customer service remains a priority. He acknowledges the potential disruptions that generative AI could bring to the industry and the need for a careful balance between efficiency and customer satisfaction. Ultimately, he remains optimistic about the future of Andromeda, driven by a strong team and a commitment to continuous improvement.  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

OpenAI has released research in collaboration with the MIT Media Lab that explores the emotional impact of using ChatGPT. The study indicates that while over 400 million people engage with ChatGPT weekly, only a small number form emotional connections with the chatbot, which is primarily marketed as a productivity tool. Notably, female users reported a decrease in socialization after four weeks of use, and those who interacted with the chatbot in a voice different from their own experienced heightened feelings of loneliness. The findings suggest that users who bond with ChatGPT may face increased loneliness and emotional dependency, prompting OpenAI to submit these studies for peer review.In the competitive landscape of generative artificial intelligence, OpenAI is reportedly facing significant financial challenges, with annual operating costs estimated between $7-8 billion. AI scholar Kai-Fu Lee points out that as foundational models become more commoditized, OpenAI may struggle to compete with cheaper alternatives like DeepSea, which operates at just 2% of OpenAI's costs. Lee emphasizes that the economics of the AI industry are shifting towards open-source models, which are cheaper to produce and operate, suggesting that while OpenAI is not on the brink of collapse, the market may soon be dominated by a few key players.The podcast also discusses the evolving capabilities of AI models, highlighting the latest version of ChatGPT, which can now blend text and image generation and respond to voice commands. Additionally, DeepSeek has upgraded its AI model, showing improved performance in coding and reasoning tasks, while Google has introduced its Gemini 2.5 Pro model, which boasts enhanced reasoning capabilities and a large token context window. These advancements indicate a trend where AI models are becoming more versatile and capable of handling complex tasks, emphasizing the importance of deployment flexibility and cost efficiency in the evolving AI landscape.Finally, the episode addresses ongoing privacy concerns surrounding AI technologies, including a new complaint against OpenAI in Europe for generating false information and a settlement reached by Clearview AI regarding privacy violations. The discussion highlights the legal implications of using generative AI tools, particularly in relation to GDPR compliance. Additionally, the podcast examines the lack of diversity in IT leadership, revealing that despite efforts towards diversity, equity, and inclusion, the demographic makeup of IT leadership remains largely unchanged, underscoring the need for continued focus on inclusive leadership in the tech industry. Four things to know today 00:00 Talking to ChatGPT Might Hurt Your Mood—And OpenAI’s Bottom Line04:15 Who’s Winning the AI Arms Race? Depends If You Want Comics, Code, or Context08:10 From Encrypted Chats to AI Slip-Ups—More in “What Could Possibly Go Wrong?”12:00 All Talk, No Change? IT Leadership Still Looks the Same in 2025  Supported by:  https://syncromsp.com/  Event: : https://www.nerdiocon.com/  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

A significant security breach has emerged involving senior members of the Trump administration, including Vice President J.D. Vance and Defense Secretary Pete Hedgeseth, who shared top-secret military plans regarding U.S. attacks on the Houthi group in Yemen via the encrypted messaging app Signal. This breach was uncovered by journalist Jeffrey Goldberg, who found himself in a group chat with key cabinet members discussing sensitive information. The National Security Council has confirmed the authenticity of the message chain, leading to calls for an immediate investigation. The incident raises serious concerns about cybersecurity practices within the federal government, particularly regarding the use of unauthorized communication tools for classified discussions.The growing popularity of Signal among federal employees and military planners during the Trump administration highlights a troubling trend of shadow IT at the executive level. This situation poses a challenge for IT leaders, as it undermines established security protocols and sends a dangerous message to lower-level staff and contractors about the importance of adhering to internal policies. If top officials can bypass security measures without facing consequences, it diminishes the perceived value of compliance and accountability across the organization.In response to this breach, experts emphasize the need for stronger cybersecurity measures and accountability for federal leaders. The incident illustrates that policy violations can extend beyond corporate rules into federal law, with potential implications for national security. The lack of consequences for high-ranking officials could lead to a culture of complacency regarding cybersecurity, where employees may view policies as mere compliance theater rather than essential guidelines for protecting sensitive information.The podcast also discusses recent advancements in cybersecurity tools and services, including Microsoft's expansion of its AI-powered security co-pilot and Verizon's launch of a generative AI-powered text messaging solution for small businesses. These developments reflect a broader trend toward operationalizing AI in cybersecurity workflows and enhancing security measures for organizations. As managed service providers (MSPs) seek to streamline operations and improve compliance, the integration of new tools and partnerships is becoming increasingly important in navigating the evolving landscape of cybersecurity and data protection. Four things to know today 00:00 Shadow IT at the Top: War Plans on Signal Show Why Cyber Rules Without Consequences Don’t Work05:54 Smarter Security, Faster Replies: Microsoft and Verizon Put AI on the Job for Everyone08:51 Fewer Tools, More Power: MSP Upgrades from Syncro, Cohesity, and MSPTerms Aim to Do It All11:53 One-Stop MSP? New Integrations Aim to Save Time, Boost Profits, and Lock You In  Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship https://www.huntress.com/mspradio/  Event: : https://www.nerdiocon.com/  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Meta is facing significant scrutiny following revelations that it allegedly used pirated books to train its AI model, Llama 3. An investigation by The Atlantic uncovered that Meta employees prioritized acquiring these books, deeming them more crucial than web data. The company reportedly accessed a vast library of over 7.5 million books through LibraryGenesis, a known source of illegal distribution. This situation raises profound ethical concerns regarding the future of knowledge sharing and the legality of generative AI development, as enterprises may hesitate to trust AI models lacking a clear intellectual property chain of custody.In the realm of technology investments, global spending on data centers surged by 51% last year, reaching $455 billion, with expectations of a further 30% growth this year. The majority of this capital expenditure is concentrated among the top 10 hyperscalers, such as Amazon Web Services, Microsoft, and Google Cloud, who are heavily investing to meet the rising demand for AI capabilities. However, the U.S. PC market is projected to see only modest growth due to ongoing tariff concerns, despite a notable increase in shipments driven by the commercial sector's demand for Windows 10 refresh cycles.CoreWeave, a cloud AI startup backed by NVIDIA, is preparing for an IPO aiming to raise up to $2.7 billion, but it faces challenges as Microsoft has opted not to exercise a significant option to purchase additional data center capacity. This decision reflects a shift in how tech companies are managing their AI budgets. Analysts have revised CoreWeave's revenue growth expectations downward, indicating a potential cash burn increase, which raises questions about the sustainability of its rapid growth and reliance on a single major customer.The podcast also highlights the implications of the current job market, which is increasingly reliant on government, healthcare, and education sectors, raising concerns about future labor market stability. As hiring in these sectors is expected to slow, the overall economic growth may be hindered, particularly for firms offering productivity-enhancing solutions. The convergence of these trends—ethical concerns in AI development, fluctuating tech investments, and a stagnant job market—paints a complex picture of the current business landscape. Three things to know today 00:00 Clouds Rise, Macs Fly, and the Job Market Sighs: A Look at the State of Play06:45 Meta’s Alleged Book Piracy Raises IP Risks Across the Generative AI Ecosystem09:01 CoreWeave’s IPO Balances Sky-High Growth and Soaring Costs as Microsoft Rethinks AI Spend  Supported by:  https://www.huntress.com/mspradio/https://timezest.com/mspradio/  Event: : https://www.nerdiocon.com/  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Erik Peterson, founder and CTO of Cloud Zero, discusses the critical importance of understanding and optimizing cloud costs, particularly in the context of AI. He emphasizes that businesses must shift their perspective from viewing cloud expenses as mere costs to seeing them as investments that should yield returns. By linking technology decisions to business goals, organizations can gain insights into their spending, allowing them to prioritize effectively and drive better outcomes. Peterson argues that understanding unit economics is essential for digital businesses to thrive in a cloud environment.The conversation delves into the complexities of AI costs, highlighting the challenges companies face when trying to measure the expenses associated with AI models. Peterson points out that many organizations are experimenting with AI without fully grasping the financial implications of their initiatives. As companies build advanced AI systems, they often overlook the costs of data movement and compute resources, leading to potential financial pitfalls. He stresses the need for businesses to understand the true cost of their AI endeavors to ensure they are achieving a positive return on investment.Peterson also addresses the current landscape of AI adoption, noting that while there is significant hype around generative AI, real success is found in solving specific, well-defined problems. He explains that organizations that focus on specialized applications of AI, where outputs can be validated, are seeing tangible benefits. By creating workflows that leverage multiple AI agents, companies can enhance their operational efficiency and make informed decisions about their spending.Finally, Peterson encourages businesses to view cost management as a driver of innovation rather than a hindrance. He cites examples of organizations that have successfully integrated cost considerations into their development processes, leading to faster innovation and improved product offerings. By adopting a mindset that prioritizes cost efficiency alongside creativity, companies can navigate the complexities of cloud spending and AI implementation, ultimately achieving greater success in their digital initiatives.  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech