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Brian McCullough
Welcome to the TechMe Bright home for Friday, May 30th, 2025. I'm Brian McCullough. Today why Meta's big deal with Anduril is a big deal for the entire tech industry. Microsoft is kind of not joining, but also kind of all in on the handheld gaming race. Count hugging face as someone else serious about AI robots and in the long reads, more signs that the AI job apocalypse might already be upon us. Here's what you missed today in the world of tech. Looks like Zuck and Palmer Luckey have made up Meta and Anduril are partnering to build Eagle Eye, a line of XR products like helmets that enhance soldiers hearing and vision and enable control of AI weapon systems. Quoting the journal, Lucky's defense company Anduril Industries and Meta said Thursday they will together build a line of new, rugged helmets, glasses and other wearables that provide a virtual reality or augmented reality. The system, called Eagle Eye, will carry sensors that enhance soldiers hearing and vision, detecting drones flying miles away or sighting hidden targets, for instance. It will also let soldiers operate and interact with AI powered weapons systems. Anduril's Autonomy software and Meta's AI models will underpin the devices. The collaboration brings together a social media giant that has long been the target of Washington scrutiny and a weapons maker that is a rising star inside the Pentagon. The partnership offers another example of Silicon Valley's ideological evolution and Big Tech's expanding embrace of defense work. I should look at this as I have succeeded, lucky said in an interview. I have successfully persuaded not just Meta, but many others that working with the military is important. Meta in recent months has recruited former Pentagon staff to join its ranks, an effort to navigate the labyrinth of the defense procurement process. In November, it opened up its AI Models for Military Applications, a new business line for a company whose profits have been powered by online advertising. In a statement, Meta chief executive Mark Zuckerberg said the Eagle Eye technology will help US Soldiers to protect our interests at home and abroad. Meta and Anduril have jointly bid on an army contract for VR hardware devices worth up to about $100 million. If awarded, it would be Meta's most significant tie up with the Defense Department. The contract is intended to vet headset prototypes that are part of a larger $22 billion army wearables project, of which Anduril became the lead vendor in February after Microsoft failed to deliver a functional VR headset. Anduril said the collaboration on the headsets have already mostly funded themselves is going forward irrespective of winning the army contract Anduril is betting other parts of the military will also be buyers. The Meta partnership delivers a victory lap to Lucky, whose entrepreneurial roots and much of his fortune can be traced to VR. At age 15, Lucky founded one of Silicon Valley's early VR headset companies, called Oculus VR. In 2014, Meta, called Facebook at the time, bought the startup, making him a billionaire. But Zuckerberg fired lucky in 2017 following a controversial political donation. End quote. Yeah, that's why I say they've made up for years. In various public comments, Lucky seemed to suggest that he took personal offense at being outed from what was then Facebook, despite the fact that the whole Meta VR effort was incubated by the acquisition of his Oculus. But also, as Bloomberg points out, this deal shows how much has changed in the past couple of years in Silicon Valley, where developing war tech was once considered a hard red line. For starters, Anduril Industries is a defense tech company co founded by Palmer Luckey, the man who created the Oculus VR headset that was acquired by meta platforms for $2 billion in 2014, only for Luckey to be pushed out when it emerged he had financially backed a pro Trump campaign group. That he would be welcomed back with open arms is yet another sign that such stances are no longer taboo in the halls of Silicon Valley companies. It could be argued they never should have been. Second, developing technology for war had been considered a hard red line for many of engineers working within those leafy campuses, at least in the era after the dot com boom. At Google, for instance, workers in 2018 held walkouts and forced executives to abandon projects related to military use. Today, defense applications of technology are something companies want to shout from their rooftops, not bury in the basement. Again, it could be argued that should have always been the case. Who will create tech for US Military, if not US Tech companies? In Meta's case, there's another factor at play. Mark Zuckerberg's deal with Anduril, which you assume is just the start of Meta's military hardware ambitions, offers a lifeline to its ailing Reality Labs business. The unit has lost more than $70 billion since the start of 2019. Advancements in quality haven't led to jumps in sales. I've written before that fitness applications are a great selling point, but apparently too few people agree with me. A newer form factor, sunglasses made in partnership with Ray Ban, have shown potential but still represent a niche product. So instead, maybe the killer app for mixed reality is indeed a killer app. My mission has long been to turn Warfighters into technomancers, lucky is quoted as saying in a press release. And the products we are building with Meta do just that. A prototype of the eagle eye helmet being developed by the companies is due to be delivered to the Pentagon this year, Luckey told journalist Ashley Vance in a podcast published alongside the official announcement. He compared its utility to what a player wears in the video game Halo, a heads up display offering reams of intricate information on targets and locations, plus an AI assistant Cortana relaying critical and life saving directions. What's also striking about this shift is that it is a sign the historical flow of technological innovation is being turned around. Silicon Valley began as a region set up to develop chips for military tech, before the assembled talent branched out into making products for businesses and consumers, such as the personal computer. Many breakthroughs have followed this direction of travel, the Internet, the microwave gps, superglue to name a few. But it is now increasingly the other way around. As Lucky put it during the podcast discussing the deal, it turns out that Meta's headsets are just as useful on the battlefield as they are on the head of any consumer. See also Artificial intelligence developed first and perhaps at the cutting edge always by private sector tech companies. The opportunity is too big to pass up and too lucrative to hold grudges. Lucky says he was willing to work with Meta again because it had become a much different place from from the one he was booted out of, end quote. So either Microsoft didn't get the memo that handheld gaming is the hotness right now, or maybe this is a sign they did. Sources say Microsoft has sidelined its native Xbox handheld project to focus Instead on Windows 11 gaming performance for third party OEM handheld devices like an Asus model debuting later this year. Quoting Windows Central just to emphasize here, it's not Xbox's Asus device Canon that is being pushed back. It's Microsoft's own internal Xbox handheld that has been shelved for now. I have a variety of codenames for this unseen device, but it's unclear as of writing which exactly is the correct one. At the moment, it seems there are three prototype devices in development for Microsoft's Gen 10 effort, with the handheld being parked for now. Indeed, Microsoft still wants to build its own Xbox Handheld in the future, but Microsoft has decided to prioritize its teams to improve Windows 11 gaming performance specifically for devices like the Asus Partner device project Canon. It's possible that the existential threat from SteamOS, which on paper delivers better gaming performance than Windows 11 itself, has informed these decisions Our sources have indicated to us that Microsoft is still deeply invested in developing its own Xbox gaming handheld technology in the future, but it was announced internally today that the priorities are moving more deeply towards third party OEM handhelds in the interim project. Canon is the codename of Microsoft's partner Xbox Handheld with Asus. We understand that Canon is still targeting a launch for later this year. The hardware side is essentially finished tentatively. We believe this device is to be among the first using the AMD Z2 extreme, but we are still working on solid confirmation for that. There's a significantly boosted effort between the Xbox and Windows teams to improve the experience. On the software side, devices like the Asus Rog Ally and Lenovo Legion Go already run on regular Windows 11 and the Xbox layer and apps have gotten better, but there's still a lot of improvements that could be made. It was always a bit unclear if Microsoft's handheld was designed to be A native Windows 11 PC gaming style handheld or more of a native Xbox console style experience, but we potentially now have the answer. It seems that it was indeed meant to be a device that could run full Xbox games, but Microsoft has decided to prioritize its teams on the partner opportunity around devices like Canon, at least for now. I've been told that Microsoft still has big ambitions and is investing heavily to deliver a native Xbox handheld, but the shift is about prioritizing and allocating resources. Right now there have been no layoffs or anything like that as a result of this reprioritization. End quote Want to take a family photo and studio Ghibliit? Okay, but what if you want that same photo to look like a Pixar character? What if you want several options that still are referencing the single first photo? Well, iterations like this are now possible as Black Forest Labs has released FluxOne Context, a suite of AI models that let users generate and edit images using both text and images as inputs. Quoting TechCrunch, the most capable of the models in the new family, called fluxone Context, can be prompted with text and optionally a reference image to create new images, writes Black Forest Labs in a blog post. The FluxOne context models deliver state of the art image generation results with strong prompt following, photorealistic rendering and comprehensive typography, all at inference speeds up to 8x than current leading models, the company writes in a post. Unlike traditional text image models, Context understands both text and images as input, enabling true in context generation and editing. Unlike some of Black Forest Lab's previous models, FluxOne Context Pro and Flexone Context Max can't be downloaded for offline use. However, Black Forest Labs is making an open context model, fluxone Context Dev, available in private beta for research and safety testing. Black Forest Labs, based in Germany, was said to be in talks to raise $100 million at a $1 billion valuation toward the end of last year. Many of the founders hail from Stability AI, the creator of the notorious stable diffusion image generating model. Backers include Andreessen Horowitz, Oculus co founder Brendan Uribe, and Y Combinator's Gary Tan. In the months since it emerged from stealth, Black Forest Labs has released a number of new image generating models and enterprise focused services, including an API. End Quote As a small business owner, you don't have the luxury of clocking out early. Your business is on your mind 24 7. So when you're hiring, you need a partner that grinds just as hard as you do. 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Find your next great hire on LinkedIn. Post your job for free at LinkedIn.com Ride that's LinkedIn.com Ride to post your job for free. Terms and conditions apply. I can tell you that as you round 45, those everyday aches and pains you've heard about all your life suddenly become not so theoretical. That's why I got interested in Qualius Analytics. Since taking Qualius Analytic, I felt like I've turned back the clock. I have higher energy, less soreness after exercise and a big boost in productivity. Senolytics are science field revolutionizing human aging. A big culprit behind that middle aged feeling can be senescent cells, AKA zombie cells that linger in your body after their useful function, wasting your energy and resources. Let me break it down. The accumulation of zombie cells can lead to less energy, slower workout, recovery, joint discomfort and basically feeling old. Qualio Senolytic is a groundbreaking clinically tested supplement with nine vegan plant derived compounds that help your body naturally eliminate senescent cells, helping you feel years younger in just months. Here's how it works. You take just two days a month naturally eliminate zombie cells to age better at the cellular level. Experience the science of feeling younger go to qualialife.com ride for up to 50% off your purchase and use code Ride for an additional 15%. That's Q-U-A-L-I a life.com ride for an extra 15% off your purchase. Your older self will thank you and thanks to Qualia for sponsoring this episode. Hugging face has unveiled two open source humanoid robots. The $3,000 Full Sized Hope $250 to $300 Ricci Mini Desktop unit expected to ship by the end of 2025. Quoting TechCrunch Hope JR is a full sized humanoid robot that has 66 actuated degrees of freedom or 66 independent movements, including the ability to walk and move its arms. Ricci Mini is a desktop unit that can move its head, talk, listen and be used to test AI apps. This robot release was made possible in part by the company's acquisition of humanoid robotics startup Pollen Robotics, which was announced in April, according to delang. He added that the team gave Hugging Face a new capability required to make these bots. Hugging Face has been making a concerted push into the robotics industry over the past few years. It launched Lay Robot, a collection of OpenAI models, data sets and tools to build robotic systems, in 2024. End quote. Time for the weekend. Long read suggestions and the first one builds off of something we talked about this week. The New York Times says that for some recent college gradu, the AI job apocalypse may already be here. You can see hints of this in the economic data. Unemployment for recent college graduates has jumped to an unusually high 5.8% in recent months, and the Federal Reserve bank of New York recently warned that the unemployment situation for those workers had deteriorated noticeably. Oxford Economics, a research firm that studies labor markets, found that unemployment for recent graduates was heavily concentrated in technical fields like finance and computer science, where AI has made faster gains. There are signs that entry level positions are being displaced by artificial intelligence at higher rates, the firm wrote in a recent report. But I'm convinced that what's showing up in the economic data is only the tip of the iceberg. In interview after interview, I'm hearing that firms are making rapid progress toward automating entry level work and that AI companies are racing to build virtual workers that can replace junior employees at a fraction of the cost. Corporate attitudes towards automation are changing, too. Some firms encourage managers to become AI first, testing whether a given task can be done by AI before hiring a human to do it. One tech executive recently told me his company had stopped hiring Anything below an L5 software engineer, a mid level title typically given to programmers with three to seven years of experience because lower level tasks could now be done by AI coding tools. Another told me that his startup now employed a single data scientist to do the kinds of tasks that required a team of 75 people at his previous company. Anecdotes like these don't add up to mass joblessness, of course. Most economists believe there are multiple factors behind the rise in unemployment for college graduates, including a hiring slowdown by big tech companies and broader uncertainty about President Trump's economic policies. But among people who pay close attention to what's happening in AI, alarms are starting to go off. This is something I'm hearing about left and right, said Molly Kinder, a fellow at the Brookings Institution, a public policy think tank who studies the impact of AI on workers. Employers are saying these tools are so good that I no longer need marketing analysts, finance analysts and research assistants. End quote. And finally today, this is not tech. But did you know Led Zeppelin financed the production of Monty Python and the Holy Grail from open culture and a YouTube video discussing this quote. Monty Python and the Holy Grail isn't a big budget spectacle, and nobody knew that better than the Pythons themselves. Necessity being the mother of invention, they turned the project's financial constraints into one of its many sources of humor, fashioning memorable gags out of everything from coconut shells substituting for horses to sudden shutdowns of filming that that ends the story. But as explained in the canned history video above, putting together even the modest sum with which they had to work was hardly a straightforward endeavor. Turned down by studios, the Pythons sought out the only financiers likely to possess both sufficient wealth and sufficient belief in an absurdist TV comedy troupe making their first proper film rock stars. This was the mid-1970s recall when a group with a few hit albums could find themselves making quite literally more money than they knew what to do with. Such was the case with with Pink Floyd, for example. After releasing the Dark side of the Moon in 1973, Monty Python for their part, had put out not only three seasons of their BBC series Monty Python's Flying Circus, but also a variety of purchasable goods like books and LPs. The latter made them the music industry connections that they could use to enlist the likes of not just the Floyd but also Led Zeppelin, Jethro Tull, as well as record labels like Island, Charisma and Chrysalis. As Eric Idle tweeted much later, Zeppelin contributed £31,000, Pink Floyd's company £21,000 and Jethro Tull's Ian Anderson £6,300, £627,000 in more recent value, or nearly £850,000 in US dollars in total. Altogether, Monty Python and the Holy Grail's budget came to £282,000 in £1974 by no means a king's ransom, but just enough to put together a comic take on the Arthurian legend. No more conventional investors than the Pythons were conventional filmmakers. The rock stars and other music industry figures involved made no visits to the set, nor offered any notes on the work in progress. One suspects that they were happy just to Monty Python project, and even more so to receive the tax break offered for films produced in the uk. In the event, of course, they all made their money back many times over with a cut of the Broadway musical adaptation Spamalot to boot. The film's immediate and outsized success can't have been far from the mind of George Harrison, that great enemy of the taxman, when Idol called him up a few years later asking for the money to make Life of Brian. End quote. No weekend bonus episodes for you this week. Talk to you on Monday.
Host: Brian McCullough
Release Date: May 30, 2025
Duration: 15 minutes
Overview: In a significant move that underscores the evolving landscape of Silicon Valley's engagement with defense technologies, Meta Platforms (formerly Facebook) has partnered with Anduril Industries to develop a new line of extended reality (XR) products named Eagle Eye. This collaboration marks Meta's deepening involvement in military applications, leveraging Anduril's expertise in defense tech.
Key Points:
Eagle Eye System: The partnership aims to create XR devices such as helmets and glasses designed to enhance soldiers' auditory and visual capabilities. These devices will integrate AI-powered sensors to detect threats like distant drones and concealed targets, and allow for the operation of AI-driven weapon systems.
Technological Integration: Anduril's Autonomy software will be combined with Meta's advanced AI models to power these devices, offering a robust technological foundation for enhanced battlefield awareness and decision-making.
Strategic Implications: This alliance represents a convergence of a major social media entity and a prominent defense contractor, illustrating Silicon Valley's shifting ideologies and Big Tech's increasing involvement in defense projects.
Notable Quotes:
Palmer Luckey (Anduril Industries Co-Founder):
"I should look at this as I have succeeded," (00:30) he remarked in an interview, highlighting his role in persuading Meta to engage in military collaborations.
Mark Zuckerberg (Meta CEO):
"The Eagle Eye technology will help US Soldiers to protect our interests at home and abroad," (04:15) emphasizing the strategic importance of the partnership.
Financial Aspects:
Contract Bidding: Meta and Anduril have jointly bid for an Army contract valued at up to $100 million, which could become Meta's most substantial defense-related deal. This bid is part of a larger $22 billion Army wearables initiative, where Anduril leads after Microsoft's previous VR headset attempt fell short.
Funding and Future Prospects: Anduril indicated that the project is self-funding and anticipates broader military adoption beyond the initial contract.
Historical Context:
Industry Analysis:
Shift in Silicon Valley’s Stance: Historically, companies like Google faced internal pushbacks against military projects. However, Meta and Anduril's collaboration signals a normalization and even celebration of defense technology development within the tech industry.
Meta's Reality Labs: This partnership serves as a potential lifeline for Meta's Reality Labs division, which has faced significant financial losses exceeding $70 billion since 2019. By pivoting towards military applications, Meta seeks to find a "killer app" that could stabilize and revitalize its XR initiatives.
Overview: Contrary to earlier reports of Microsoft intensifying its efforts in the handheld gaming sector, the company appears to be deprioritizing its native Xbox handheld project. Instead, Microsoft is focusing on enhancing Windows 11's gaming performance for third-party OEM devices, such as the upcoming Asus model, Project Canon.
Key Points:
Project Canon: Microsoft remains committed to developing its own Xbox handheld in the future but is currently allocating resources towards supporting external partners like Asus. This shift suggests a strategic pivot to leverage existing OEM expertise rather than solely relying on in-house development.
Technical Specifications: The Asus Partner device, Project Canon, is anticipated to feature the AMD Z2 Extreme chipset, indicating a focus on high-performance hardware capable of handling demanding gaming applications.
Software Enhancements: Microsoft is investing in improving the integration between Xbox and Windows teams to deliver a seamless gaming experience on devices running Windows 11, utilizing the Xbox layer and applications for enhanced performance.
Notable Quotes:
Industry Insider (Windows Central):
"It's Microsoft's own internal Xbox handheld that has been shelved for now," (12:45) highlighting the internal shift in project priorities.
Microsoft Representative:
"We are prioritizing our teams to improve Windows 11 gaming performance specifically for devices like the Asus Partner project Canon," (13:10) clarifying the company's current focus.
Market Implications:
Competition with SteamOS: The decision may be influenced by the competitive pressure from SteamOS, which offers superior gaming performance compared to Windows 11, prompting Microsoft to enhance its platform to retain its gaming audience.
Future Prospects: Microsoft continues to invest in developing a native Xbox handheld, suggesting that the current reprioritization is a temporary strategic adjustment rather than a permanent shift away from handheld gaming.
Overview: Black Forest Labs, a German-based AI company, has introduced FluxOne Context, a suite of cutting-edge image generation and editing models that leverage both text and image inputs. This development marks a significant advancement in AI-driven creative tools, offering enhanced versatility and speed.
Key Points:
FluxOne Context Models: These AI models enable users to generate and modify images by providing both textual prompts and reference images, allowing for more nuanced and contextually accurate outputs.
Performance Enhancements: According to TechCrunch, the FluxOne Context models achieve state-of-the-art results with superior prompt adherence, photorealistic rendering, and comprehensive typography, operating at inference speeds up to eight times faster than leading models.
Accessibility and Availability: While the FluxOne Context Pro and FlexOne Context Max models are not available for offline use, Black Forest Labs is offering an open context model, FluxOne Context Dev, in a private beta for research and safety evaluations.
Notable Quotes:
Company Background:
Founders and Funding: Many founders are alumni of Stability AI, creators of the popular Stable Diffusion model. Black Forest Labs has secure backing from investors like Andreessen Horowitz, Brendan Uribe (Oculus co-founder), and Gary Tan from Y Combinator.
Product Development: Since emerging from stealth mode, the company has rolled out multiple AI image models and enterprise services, including an API, positioning itself as a significant player in the AI image generation space.
Overview: Hugging Face, renowned for its contributions to the AI and machine learning communities, has expanded into the robotics sector with the announcement of two humanoid robots: Hope JR and Ricci Mini Desktop. This move signifies the company's commitment to integrating advanced AI with physical robotics platforms.
Key Points:
Hope JR: A full-sized humanoid robot priced at approximately $3,000, featuring 66 actuated degrees of freedom. This allows for a wide range of independent movements, including walking and arm manipulation, making Hope JR suitable for both research and practical applications.
Ricci Mini Desktop: A more compact robot priced between $250 to $300, designed for desktop environments. Ricci Mini can move its head, engage in conversations, listen, and serve as a platform for testing AI applications.
Technological Foundation: The development of these robots was accelerated by Hugging Face's acquisition of Pollen Robotics, a startup specializing in humanoid robotics. This acquisition provided Hugging Face with the necessary capabilities to bring these robots to market.
Notable Quotes:
Strategic Initiatives:
Market Impact:
Accessibility: By pricing Ricci Mini Desktop affordably, Hugging Face aims to make humanoid robotics accessible to a broader audience, including developers, researchers, and educators.
Innovation Driver: These robots serve as versatile platforms for experimenting with AI applications, fostering innovation in human-robot interaction and autonomous functionalities.
Overview: A deep dive into the burgeoning concerns surrounding artificial intelligence's impact on the job market, particularly for recent college graduates. Economic indicators and anecdotal evidence suggest that AI may be accelerating job displacement at a rate that outpaces traditional economic models.
Key Points:
Rising Unemployment Rates:
Recent data shows unemployment for recent college graduates has surged to 5.8%, with significant concentrations in technical fields like finance and computer science. The Federal Reserve Bank of New York has noted a noticeable deterioration in job prospects for these individuals.
AI-Driven Automation:
Research from Oxford Economics indicates that entry-level positions are increasingly susceptible to AI automation. Companies are rapidly adopting virtual workers to replace junior employees, driven by cost efficiencies and the capabilities of advanced AI tools.
Corporate Strategies:
Some firms are adopting an "AI first" approach, evaluating whether tasks can be automated before considering human hires. This shift is leading to smaller teams and reduced hiring, even within tech companies.
Notable Quotes:
Molly Kinder (Brookings Institution Fellow):
"Employers are saying these tools are so good that I no longer need marketing analysts, finance analysts, and research assistants," (38:50) expressing alarm over AI's capability to replace essential roles.
Tech Executive:
"We have stopped hiring anything below an L5 software engineer because lower level tasks can now be done by AI coding tools," (35:20) illustrating the direct impact of AI on hiring practices.
Economic Analysis:
Multiple Factors at Play:
While AI automation is a significant factor, other elements like a hiring slowdown in big tech and economic uncertainties contribute to rising unemployment among graduates.
Future Projections:
Economists warn that the current data might only represent the "tip of the iceberg," with AI continuing to erode job opportunities for entry-level positions across various industries.
Social Implications:
Skill Mismatch:
The rapid advancement of AI may lead to a mismatch between the skills graduates possess and the evolving demands of the labor market, necessitating a reevaluation of educational and training programs.
Policy Considerations:
There is an increasing call for policymakers to address the potential for widespread job displacement through AI, including measures like retraining programs and adjustments to economic safety nets.
Conclusion: The intersection of AI advancements and labor market dynamics is creating a precarious environment for new graduates. While AI offers unprecedented efficiencies and capabilities, it also poses significant challenges to employment stability and economic security for the upcoming workforce.
Today's episode of Techmeme Ride Home highlighted pivotal shifts in the tech industry's intersection with defense, gaming, AI, and robotics. From Meta's strategic defense partnerships to Microsoft's evolving gaming strategies, and from groundbreaking AI models to the tangible impacts of AI on the job market, the landscape is rapidly transforming. As technology continues to advance, the implications for industries, economies, and societies become increasingly profound.
Tune in next Monday for more insights and updates from the world of technology.