FTI Consulting News Bytes – 08 November 2024

FTI Consulting News Bytes

This week, we start with a warning from Palantir CEO that Europe risks being “left behind” if it continues to stand on the sidelines of AI rather than adapt to it. Next, we look at Northern Virginia where environmental campaigners are protesting against the proliferation of data centres, before heading back to Europe where the founder of Babylon has secured investment from Swedish VC Norrsken for his new healthtech company, Quadrivia. At this year’s TechCrunch Disrupt 2024, leaders shared concerns about the impact of generative AI on artists and creative professions. Lastly, we look at the role tech tycoon Elon Musk will play in the administration of the newly elected 47th President of the United States.  

This week’s news

Palantir warns Europe’s AI approach risks economic ruin

This week, Palantir’s CEO Alex Karp did not mince his words as he warned Europe risked being “left behind” and facing “economic ruin” if it continued to stand on the sidelines rather than adapt to the opportunities and challenges presented by AI, reports The Times. In a letter to shareholders, Karp positioned the US as “once again forging ahead” as American companies “disrupt and reshape” global industries. Palantir, riding a wave of generative AI demand, hit record highs with $726 million in revenue last quarter, a 30% rise on the previous year. Its platforms manage and secure data for customers including the US government and NHS. With shares up 140% this year, Karp’s message is clear—if Europe doesn’t dive in, it risks being left behind in an AI-driven world.

Virginia battles environmental toll of the ‘Wall Street of Data’

Northern Virginia, dubbed the “Wall Street of Data,” is home to the world’s densest data centre cluster—a boom not everyone’s cheering for. Environmentalist Julie Bolthouse and fellow campaigners argue the data centres guzzle energy, crowd out green spaces, and hike local bills, according to BBC News. Similar protests have been seen in Ireland, where campaign group Friends of the Irish Environment challenged plans for a new €1.2 billion data centre in County Clare, and in Uruguay, where Google swapped water for an air cooling system for its data centres after protests. The message? Data might be virtual, but the impact is real.

Babylon’s Ali Parsa returns with new AI health venture 

Ali Parsa, the founder of Babylon Health, has secured investment from Swedish VC Norrsken for his new venture, Quadrivia, reports Sifted. According to anonymous sources, the AI healthtech startup aims to become an “AI agent for healthcare,” potentially focusing on triaging tools for insurers or automating healthcare back-office processes. Sifted suggests the company is currently operating in stealth mode, with Parsa listed as a significant shareholder. This development comes a year after Babylon’s collapse.

Art vs. AI: will creativity survive the rise of the machines?

The leaders of several AI companies gathered at TechCrunch Disrupt 2024 this week to allay concerns about the impact of generative AI on artists. While some embrace AI as a creative tool, others worry about job displacement and the erosion of human artistry. Kakul Srivastava, CEO of Splice, admitted jobs may be lost, but “more art [will be] created, because more of us will have the ability to bring that truth out to life”, empowered by AI tools. Yet many in the creative industry are unconvinced with questions remaining about authenticity, ownership, and the future of creative professions.

Musk’s gamble on Trump pays off

Donald Trump returns to the Oval Office as 47th President of the United States, bringing with him owner of X and tech tycoon, Elon Musk. The Financial Times reports that Musk, the Trump campaign’s biggest donor, will join the administration as the head of a new Department of Government Efficiency. In his role, Musk will have powers to recommend cuts to federal bureaucracy, and has vowed to champion deregulation and influence US policy on AI, space exploration and electric vehicles – all sectors in which he has a personal stake through his companies Tesla, SpaceX and xAI.

Top Tweets of the Week 

• Wired:  Social media companies that once at least tried to promote a healthy information ecosystem have largely given up—and insiders say Musk’s example gave them cover.
• Variety: In the #Heretic credits, there’s a message stating that “No generative AI was used in the making of this film. It was important for us to put that out there because we think it’s something people need to start talking about,” Bryan Woods says.
• Vinod Khosla, Venture Capitalist and Co-Founder of Sun Microsystems: I very much count on innovation coming from orthogonal sectors! In the last forty years I have watched innovation, no big innovation has come from people who are experts the field! It’s first principles thinkers who are willing to look past current expert knowledge. Uber, AirBnB, SpaceX, Rocketlab, Tesla, plant proteins, fusion, solar, media, retailing…

Number of the week

$75,389 – Bitcoin surges to a record all time high value, surpassing a previous peak of $73,803, following Donald Trump’s re-election, reports the Financial Times.