On this week's episode of The MadTech Podcast, Adam Foley, CEO of Bountiful Cow, joins ExchangeWire staff writer Hannah Dillon and head of content John Still to discuss new AI start up xAI, the latest updates on Microsoft's planned acquisition of Activision Blizzard, Disney's potential TV sell off, and more.

Elon Musk announces AI company

What impact could the launch of xAI have on the AI space? Do you think it can live up to its lofty ambitions?

Elon Musk has launched a new artificial intelligence company, xAI. The start up, which was announced by the Tesla boss last week, will aspire to “understand the true nature of the universe,” and promises to deliver an effective AGI by 2029. Staff will include individuals with previous experience working on AI systems, such as OpenAI’s ChatGPT and DeepMind’s AlphaCode. 

Musk, who also heads up SpaceX, previously discussed plans to build an AI model called “TruthGPT” to challenge what he dubbed the “politically correct” systems that have become mainstream. Musk reiterated on Friday (14th July) that any language model developed by xAI may “give answers that people may find controversial even though they are actually true.” Separately, xAI co-founder Greg Yang said that the company will explore the “mathematics of deep learning” and “develop ‘the theory of everything’ for large neural networks.”

Microsoft may be inching closer to Activision purchase

What impact would a successful deal have on the gaming sphere? What impact could it have on future anti-competition cases?

Microsoft could be a step closer to closing its long-gestating acquisition of Activision Blizzard after a US judge denied an appeal against the deal. The Federal Trade Commission (FTC) had sought to suspend the purchase due to concerns that it would negatively affect competition within the gaming market and have a detrimental impact on consumer choice.

The Competition and Markets Authority (CMA), meanwhile, has softened from its initial stance and reopened its review of the USD$69bn (~£52.7bn) purchase. The UK regulator has said that it is “ready to consider any proposals from Microsoft to restructure the transaction” and will come to a decision by the 29th August. The FTC has lodged a new appeal with another court.

Disney may sell linear TV business

Do you think Disney could find a buyer for their linear TV assets?

Disney may be looking to divest its linear television assets, with CEO Bob Iger stating that the unit “may not be core” to the entertainment giant’s strategy any more. Speaking to CNBC last week, Iger described the current distribution model as “definitely broken”, but nonetheless said that the business would stay “objective” when reviewing the future of its linear portfolio, which includes ABC, FX, and National Geographic.

The company has different plans for ESPN, however, with Iger revealing that Disney is open to a strategic partnership to turn the sports network into a direct-to-consumer platform. With linear TV viewership in decline, some question whether anyone would be prepared to buy these assets if Disney does choose to sell them, although others are more optimistic about a potential change in strategy.