A House Of AI

Happy Tuesday, Future Party. You’d probably never guess which city just became the biggest in the world. According to a new UN report, Jakarta has taken the crown from Tokyo, with the Indonesian capital boasting a population of 42 million. For context, the largest city in the US — New York — has just 8.4 million people. We can’t imagine the traffic in Jakarta during rush hour.

The AI industry alone accounted for half of the growth in the US’s gross domestic product, highlighting just how much the current gold rush is propping up the economy.

The Big Picture: The race to conquer AI is driving unprecedented spending. All of that capital expenditure seems to be making up for stagnation in most other industries, a softening job market, and high costs that have dampened consumer spending. If the rug gets pulled out from under AI (as it did with NFTs and the metaverse), it would likely trigger a recession.

Behind The Investment: So, how risky is the house of cards that the US economy is on right now? The WSJ breaks it down.

Final Tally: So, how wobbly is all of this really? Barclays senior US economist Jonathan Millar warns that a 20%-30% stock market drop, fueled by either fear or the reality of an AI bubble, would reduce GDP growth by up to 1.5%. In other words, if AI sinks, the US economy shrinks.

No wonder the White House just launched the “Genesis Mission” to supercharge AI growth and utilization. As a country, we’re going all in on the gamble.

The Future: It’s possible that the newest trend in investing may be AI-proofing portfolios, similar to how people modulate their stocks-to-bonds ratio.

Ubisoft debuted a new game that lets players control generative AI companions with their voices.

Why It Hits: Like every form of entertainment, gaming is feeling the impact of AI — and the response from players has been mixed. While Ubisoft insists that humans are still driving the development of these features, how gamers react to the actual gameplay will ultimately determine whether these AI additions roll out across the company’s slate.

Behind The Gameplay: Ubisoft’s Teammates seems to be the first video game where you can play alongside AI.

Last Boss: Ubisoft’s director of gameplay GenAI, Xavier Manzanares, says the goal is to make gamers “feel like a leader,” while narrative director Virginie Mosser adds that the features are meant to “give AI meaning,” not replace the work humans do.

The game isn’t publicly available yet. Instead, Ubisoft has launched a closed playtest with a few hundred gamers to work out the tweaks and acquire feedback before a potential wider rollout.

Next Release: If the features in Teammates are imbued into Ubisoft’s slate, the age-old practice of having your friend read you the guidebook while you play may go the way of… well… physical guidebooks.

55.6% of you voted Mostly hurt in yesterday’s poll: Do you think large M&A deals generally help or hurt an industry?

“Mergers and acquisitions are nothing more than a cash-grab. In a perfectly operating business that’s attractive to others, the other company comes in, restructures, lays people off, alters the core function, and ultimately destroys the original business.”

“With mergers come layoffs. Competition between companies is good for the market, and that’s impossible when there’s a monopoly.”

“Creativity suffers above all when these deals happen.”

“Promised merger savings from eliminating duplication rarely materialize — and consumers usually end up paying higher prices.”

Let’s keep the conversation going. Join our Poll Of The Day newsletter, so your opinions can shine. Discover how your views line up with your peers’, check out cool insights, and have some fun. It’s data with personality.

🎥 Paramount is releasing a 3D Billie Eilish concert film, co-directed by the artist and James Cameron, in theaters on March 20th.

📺 Canadian media giant Bell Media is trying to woo back Canadian stars who left for Hollywood with promises of money and creative freedom.

🎤 Apple Music has named Tyler, The Creator as its Artist of the Year.

👀 Facebook is taking a shot at Reddit with a new nickname feature for Facebook Groups.

💸 The Rockefeller Foundation is partnering with MrBeast’s Beast Philanthropy to inspire giving among young people.

🤳 The Make-A-Wish Foundation reported that wishes to meet top digital creators have doubled in the past decade.

👕 Zegna Group is preparing to hand the reins to the next generation by elevating both of Zegna’s sons to co-CEOs of the flagship brand.

👔 California luxury brand AMIRI has opened its first European flagship store in Milan, Italy.

🛒 OpenAI is rolling out a new ChatGPT shopping feature that will let people query for the best Black Friday and Cyber Monday deals.