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Top stories today:1. Stability AI launches new open-source LLMs, but disappoints2. Google to launch generative AI for ads in the coming months3. Tesla's operating margin falls from 19% to 11%4. Coinbase to launch offshore exchange "in coming weeks"

0. Data and calendar

1. Stability AI launches new open-source LLMs

• 3B and 7B-parameter models live.

• 15B and 65B models coming soon.

• 1.5T token custom dataset.

• CC-BY-SA-4.0 license. - Techcrunch, Stability

Their 65B parameters lag behind the 175B of BLOOM, which is also open-source

Our view: Stability's LLMs appears to be worse than other open-source models, like LLaMA and BLOOM

• It performs poorly on many standardized tests, probably why Stability did not release this data. - Hacker News

• Why can't they do a better model? Is it just a lack of money to run the models themselves? Stability's most recent fundraising was $100M, vs $10B for OpenAI.

2. Google to launch generative AI for ads in the coming months

• AI will automatically produce marketing content based on images, video, and text supplied by the advertiser. - FT

Our view: unclear how much this helps Google's bottom line

• Google's problem is not lack of advertising tools, it's the potential threat of Bing + OpenAI.

3. Tesla's operating margin falls from 19% to 11%, as company cuts prices to expand demand

In the TTM graph, operating margin compression doesn't look so bad

The first Cybertrucks are set to be delivered in Q3, although volume production will only start in 2024

Tesla's stock is down 8% in the pre-market

Read more: The Verge, Tesla.

Our view: this margin compression is proof that Tesla's moat is not as strong as Big Tech's

• It is still a car manufacturer, after all, even as Tesla always tries to position itself as a technology company.

  • Other manufacturers are copying Tesla's features. Especially the Chinese ones, like BYD.

• Can full self-driving be Tesla's moat? Tesla is delayed in having full self-driving (with no human intervention) ready, likely for regulatory reasons. Even then, Tesla could launch it years ahead of its competitors, which would then be an exceptional reason to buy a Tesla.

4. Coinbase to launch offshore exchange "in coming weeks"

• Bermuda: the company recently received a license to operate there.

• To include derivatives, which is something missing from Coinbase (given U.S. regulations), but account for the majority of crypto volume worldwide. - Fortune

Our view: this could be a real threat to Binance

• Coinbase can leverage its better reputation to attract customers who are wary about Binance's lack of jurisdictional clarity.

  • Coinbase is the only fully audited crypto exchange (by Deloitte). It has to be, since it is a public company trading in the U.S.

5. Snap expands Stories revenue sharing to those with 50K+ followers; Stories can now be public

• No disclosure on percentage paid: Snap only discloses that they pay millions per month to creators. Their secretiveness likely masks a small payout percentage to creators.

Read more: The Information.

Snap is also releasing their AI chat for everyone, for free

Read more: The Verge, Snap.

Our view: Snap is trying to lure creators from TikTok and Youtube Shorts

Which currently dominate the scene:

• Bullish on Youtube Shorts: the fact that Google will likely favor Youtube vs. TikTok or Snap in its search engine is a killer.

  • Maybe a partnership with Bing would help? An idea for Snap to think about.

6. Elon Musk threatens to sue Microsoft after it dropped Twitter support

Microsoft had dropped Twitter support from its Smart Campaigns advertising platform

• Twitter is reportedly charging between 42K and 210K per month for its full API. - Mashable, Microsoft

Twitter also reiterated that it will remove legacy checkmarks today, but we'll have to wait and see if it happens

7. Bloomberg's revenue surpasses $12B

• Bloomberg Terminal revenue has stagnated, but non-Terminal revenue has grown steadily. Total revenue is $12B/year.

  • Price per terminal is $30K for 1, $27K for multiple ones. They say they don't negotiate.

  • 325K customers (terminal, paying).

  • $9B in revenue/year (terminal).

• Media is only $500M of non-terminal revenue. - FT

Our view: increasingly, Bloomberg's features are available for free or a fraction of a cost

• Asset prices, chat, financial information, analysis: most of this is available online. What Bloomberg is exceptional in is providing all the information in one integrated software, with industry-standard accuracy.

• Many players are trying to attack Bloomberg Terminal:

  • Some expensive ones, like Refinitiv Eikon, which starts at around $10K/year.

  • Some are much cheaper, like Koyfin, which even has a free version.

8. Other headlines

AI

• Musk's leader for OpenAI rival (Igor Babuschkin) prev. arrested for domestic violence.

• Atlassian bringing OpenAI-powered chat and other features to its software suite.

• Bard: some Google employees did not want it released for ethical reasons.

• Poe: interview with Quora/Poe CEO Adam D'Angelo.

Tech

• Bluesky, Jack Dorsey-backed decentralized Twitter alternative, up on Android.

• TikTok suicides: a look at how their algorithm can push someone to kill themselves.

• Apple bets on India for the long-term: analyst.

Biotech

• 2nd Covid booster signed off by CDC, targets 65+ and immunocompromised.

• Mounjaro: analyst predicts $50B in tirzepatide (strongest weight-loss drug) sales.

• SCOTUS extends abortion pill's approval until Friday.

• Hevolution announces 18 3-year $375K grants for longevity.

Business

• SeatGeek files confidentially for IPO: $500M in revenue expected in 2023.

• Seagate to pay $300M penalty for shipping Huawei $1.1B in hard drives.

• EdgeQ: 5G chip startup raises $75M at <$1B valuation.

• Instagram to cut or relocate its London staff.

• More banks are having to pay up to keep depositors.

• Bed Bath & Beyond preparing for bankruptcy filing in days.

Crypto

• Deribit to add zero-fee spot trading for BTC/USDC, ETH/USDC, and ETH/BTC.

• Tesla makes no changes to its BTC position: $184M.

• OpenSea insider trading trial set for April 24.

• Maple opens U.S. Treasury bill pool, with 0.5% annual fee.

• SBF's lawyers are having a hard time installing monitoring software on his parents' phones.

• Ethereum's Shapella upgrade (Wed) will allow unstaking of the 18M staked ETH.

• BitBoy to skip FTX court date for his Bahamas cruise.

U.S. politics

• McCarthy debt limit bill to return federal budget to 2022 levels, faces opposition.

• U.S. cash pile jumps on tax date, but government might still default in June.

• IRS whistleblower says Hunter Biden probe is being mishandled.

• Manhattan DA's attempt to quash House deposition fails.

• Florida prohibits sexual orientation instruction in government schools.

• 2 more Florida Congressmen endorse Trump, in a blow to DeSantis.

• 45 Trump x 3 DeSantis: number of House endorsements.

• DeSantis' Disney board moves closer to invalidating previous pro-Disney agreement.

• Trump says he may skip NY rape case.

World

• Canada told NATO it will never meet its defense-spending targets: leaked docs.

9. Interesting tweets, memes, and images

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