Tech Brew // Morning Brew // Update
AI bubble watch.

It’s Friday. The B-word has been on everyone’s lips for months and months now. So today, we’re debuting an AI bubble watch: routine updates on what’s happening and where the nervousness level stands. Will it be the first and last—or is this going to be a real slow burn?

In today’s edition:

Patrick Kulp, Jordyn Grzelewski, Caroline Catherman, Eoin Higgins, Annie Saunders

AI

Hand holding a needle next to AI bubble.

Anna Kim

Not for the first time since ChatGPT debuted three years ago, anxiety is swelling about an AI bubble.

A steady stock sell-off and declines among some of AI’s biggest players—Nvidia, Microsoft, Meta—have made for the market’s most sluggish November since 2008. Tech execs have been fielding questions about dizzying numbers, and industry watchers are pondering the circularity of recent funding deals.

The stakes are higher than ever. The collective hundreds of billions that Silicon Valley is spending on AI infrastructure have accounted for most of the country’s economic growth this year, according to economists. Some experts warn the AI bubble is bigger than the speculative frenzy around the internet in the 1990s; it may even be multiple concurrent bubbles.

Bubble doubters say the technology is transformative enough to warrant the level of investment, and execs counter that business demand for cloud services remains strong. Nvidia may have also quelled some bubble fears this week with strong results for Q3 that sent its share price up around 4% as of Thursday morning.

In what may become a periodic series, we rounded up some of the news currently serving as tea leaves for AI bubble worries.

Keep reading here.—PK

Presented By Fidelity Private Shares℠

FUTURE OF TRAVEL

Image of cars on a truck nearing the US border for story about how tariffs would impact US automakers.

Jeff Kowalsky/Getty Images

A geopolitical dispute over microchips, ever-fluctuating changes to US trade policy, and a shortage of rare earth minerals are just a few challenges that have bedeviled major automotive suppliers lately.

In response to *waves hands* all of this, suppliers are changing up their traditional ways of doing business—and turning to tech for help.

Top executives from Lear, the largest US-based automotive supplier, and the North American division of German multinational company Bosch recently spoke at Automotive Press Association events near Detroit about how they’re navigating supply-chain crises, adapting to tariffs, and integrating AI.

“I’m all for an ambitious goal to build more here in the US and supply great jobs,” Lear CEO Ray Scott said. “But if you think about the supply chain that’s been built over 25 years, trying to do that overnight, it’s very challenging.”

Keep reading here.—JG

Together With Notion

CYBERSECURITY

Close-up of the monitors of medical devices with one screen showing a red warning sign.

Illustration: Brittany Holloway-Brown, Photos: Adobe Stock

When hackers target healthcare systems, medical devices can be high-impact casualties.

Clinical technology is complex and multifaceted, incorporating online systems with hardware devices. The technology has led to advances in care and diagnostic success, but also increased potential vulnerabilities. When a network is knocked offline, medical devices can also be affected.

As cyberattacks against healthcare increase, so does risk to medical devices. One recent survey of healthcare executives found 22% of healthcare organizations suffered at least one attack aimed at devices. When attacks do occur, they can threaten patients’ lives and cost healthcare organizations millions of dollars.

As of March 2023, the FDA requires all new medical device submissions to include evidence the devices are cybersecure, a software bill of materials, and a plan to monitor and address cybersecurity vulnerabilities post-market. But these requirements do not apply retroactively, and many providers still use older medical devices with legacy operating systems—73%, according to a 2021 survey by cybersecurity company Kaspersky.

On Oct. 1, for instance, the FDA recalled a heart pump controller over concerns it could be hacked. Its manufacturer, Johnson & Johnson’s Abiomed, advised users to disconnect the device from their network until a security fix was available.

“The bad guys, once they’re in the network, may deploy ransomware, which encrypts the pathways to medical devices—potentially the medical devices themselves—denying the availability of the device for clinicians and patients. That’s where the real potential risk and harm is,” John Riggi, national advisor for cybersecurity and risk at trade and lobbying group the American Hospital Association, said.

Keep reading on Healthcare Brew.—CC, EH

Together With Amazon Web Services

BITS AND BYTES

Stat: 17%. That’s the percentage of people worldwide who use TikTok for news, NY Mag reported, citing data from the Reuters Institute.

Quote: “I am very concerned the government is paying more attention to US tech companies’ interests rather than British creatives’ interests.”—Ed Newton-Rex, a composer, to The Guardian about British artists’ campaign to prevent AI companies from training AI models on their work

Read: All of my employees are AI agents, and so are my executives (Wired)

Your 409A questions, answered: Not all 409A valuations are created equal. Learn how you can help avoid penalties, protect safe harbor, and get audit-ready with Fidelity Private Shares’ guide. Download your copy.*

*A message from our sponsor.

COOL CONSUMER TECH

Illustration of bitcoin melting

Nick Iluzada

Just a bit of coin: There’s been no shortage of chatter about cryptocurrencies, thanks to a crypto-friendly presidential administration. But over the past week, bitcoin’s value has plummeted. Morning Brew has notes on the implosion—and what it means for you, even if your regular greenbacks are just in the old-fashioned stock market.

Kid content: The Verge’s Allison Johnson declares she’s “officially done with YouTube Kids,” citing AI slop, questionable “educational” content, and content controls that nevertheless allowed “the weirdest, most obnoxious stuff [to find] its way to the surface.”

The feeling of getting a 5/5 on the Brew’s weekly news quiz has been compared to getting a company-wide shout-out from your boss. It’s that satisfying.

Ace the quiz

SHARE THE BREW

Share Tech Brew with your coworkers, acquire free Brew swag, and then make new friends as a result of your fresh Brew swag.

We’re saying we’ll give you free stuff and more friends if you share a link. One link.

Your referral count: 0

Click to Share

Or copy & paste your referral link to others:
emergingtechbrew.com/r/?kid=ee47c878

✳︎ A Note From Amazon Web Services

1 “Now decides next: Moving from potential to performance,” Deloitte.