What I Read This Week…
Powell wants inflation to come down further before considering rate cuts, Apple announces a system-wide integration with ChatGPT, and China is emerging as a scientific superpower.
Read our Creator Economy Deep Dive
Caught My Eye…
The Labor Department reported Wednesday that CPI held steady at 3.3%. Later that day, Powell announced during June’s FOMC meeting that he is looking for signs that inflation is moving towards the Fed’s 2% target before considering rate cuts. This marks a shift in stance from recent meetings where Powell suggested that the Fed would cut rates during the latter half of this year. Why the shift? Experts believe Powell is keen to protect his credibility and avoid cutting rates prematurely, especially after being criticized for reacting too slowly to rising inflation in 2021.
Apple announced Apple Intelligence, a platform that leverages generative AI and users' personal data to enhance their devices' capabilities. Notably, this includes a system-wide integration with ChatGPT, which allows Siri to delegate complex user requests to ChatGPT. This marks a significant shift from Apple's walled garden approach, granting OpenAI access to previously restricted OS layers. The deal is non-exclusive, as Apple considers competitors like Google’s Gemini platform, fueling speculation that Apple might auction off its LLM integration to the highest bidder.
China is emerging as a scientific superpower, surpassing the U.S. and EU in both highly-cited publications and contributions to prestigious journals like Nature. What has driven this shift? First, China's R&D spending has increased 16-fold since 2000, with spending strategically directed by the CCP's long-term vision. Moreover, China continues to attract top talent, including Chinese scientists who studied abroad, partly by offering bonuses and grants to establish labs in China. Chinese universities are also now equipped with state-of-the-art facilities, and they offer sizable bonuses for faculty members that publish their research in prestigious journals.
Other Reading…
America Seems Immune to the World Economy’s Problems (The Economist)
FTC Chair Lina Khan Tells TechCrunch the Agency is Pursuing the 'Mob Bosses' in Big Tech (TechCrunch)
Ukraine Has a Navy that Needs No Sailors (The Economist)
Why GameStop’s Meme Mania Isn’t Catching On (Financial Times)
On X…
I appreciate the way you balance perspective in this post by providing contrasting perspectives on Apple's AI integration and China's prominence in academic literature.