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Daily Tech News Show

29 Mar 2026 · 32m · 17 chapters

Episode artwork

DTNS March 2026 in Review

In short

Daily Tech News Show March 2026 in review. Covers Anthropic vs U.S. Department of Defense over “supply chain risk” injunctions; FCC router certification restrictions for overseas-made/designed routers; Google/Epic third-party app store settlement fees; Microsoft’s “Project Helix” next-gen Xbox console; backlash to NVIDIA DLSS 5 (Resident Evil: Grace face changes); and OpenAI ending Sora/video generation development to focus on coding.

Guests

None. Hosts are Tom Merritt and Jen Cutter; no guest interviewees mentioned.

Key claims

Anthropic may win an injunction; DoD may not have notified Congress as required. FCC rule affects only new router designs, not already-certified inventory. Google’s 30% Play Store share is effectively “dead.” DLSS 5 backlash is overblown; studios retain artistic control via tuning. OpenAI is dropping video due to cost/ROI and competitive focus on coding.

Notable examples

Grace Ashcroft in Resident Evil; Starfield/Oblivion Remastered; Epic store enabling Fortnite reinstallation; Netgear exemption timing; FCC router overseas-design ban.

Written by AI. May contain mistakes.

Chapters

2:21

March 2026 Tech News Overview

Overview of significant tech stories from March 2026.

“And that is just the tip of the news iceberg.”
2:58

AI Infrastructure and Developments

Discussion about AI infrastructure and notable tech developments.

“model what it thought the big stories of the month were.”
5:34

Anthropic vs. Department of Defense

In-depth discussion on the legal battle between Anthropic and the DoD.

“It's like, oh my goodness, I can't believe that was this month.”
7:33

FCC Router Certification Changes

Analysis of the FCC's new router certification rules.

“The only recent news towards the end of the month was that Anthropik and the Department of Defense gave their presentations in front of the judge.”
14:00

Impact of Router Prices on ISPs

Discusses how various factors could influence router prices and ISPs.

“So that could raise the price of those routers, which could raise the price of your ISP, maybe.”
16:38

Google and Epic Store Settlement Details

Breaks down the implications of the Google and Epic settlement.

“We're going to start with the Google and Epic third-party store settlement, and I'm going to drop a whole bunch of numbers here for what is going to happen.”
18:38

Microsoft's Project Helix Announcement

Covers the announcement of Microsoft's next-gen gaming console.

“Last month in the wrap up, we covered in great detail the appointment of Microsoft's new gaming CEO Asha Sharma, and this month she revealed codename Project Helix.”
20:24

NVIDIA DLSS 5 Controversy

Discusses the mixed reactions to the announcement of DLSS 5.

“But to me, the big gaming story this month was NVIDIA's, I can't fully call it disastrous, but widely reacted to announcement of DLSS 5.”
23:07

Artistic Control with DLSS 5

Explores the implications of AI and artistic control in gaming.

“And there are controls we can adjust to make it fit the way we want it to look.”
28:02

Game Development Insights

Discussion on the upcoming implementation of game development by Bethesda.

“That is two of the three or four if you're a patron.”
Show all 17 chapters
28:32

Podcast Promotion: Off-Duty

An introduction to a new podcast episode about a murder case in Chicago.

“Police and prosecutors swear they have the trigger man.”
29:35

OpenAI's Strategic Shift

Examination of OpenAI's decision to scrap Sora and end video generation development.

“But I think OpenAI scrapping Sora is bigger than it sounds.”
30:29

Focus on Coding

Discussion on OpenAI's focus on coding and their business strategy moving forward.

“That is where they think they can win against Anthropic, where Cloud Code has gotten a lot of the praise recently.”
31:21

Impact on AI Music and Partnerships

Analysis of potential ripple effects in the AI music sector following OpenAI's changes.

“After that Disney deal, I thought like, okay, they're going to be quiet while they work this out and do this huge push with all the characters.”
33:05

Market Competition and Strategy

Discussion on the competitive landscape of AI companies and OpenAI's positioning.

“I'm wondering if this will have ripple effects on the AI music deals that are going out right now.”
34:52

The Future of Chat GPT

Speculation on the future relevance of Chat GPT and its commodification.

“I guess I can't really call them a first mover in this, but you kind of can when they just went big, they're like, okay, like this huge thing gone over done.”
36:24

Community Feedback Invitation

Call for listener insights on important news stories missed in the month.

“hardcore codex related, maybe not fully enterprise, but businessy oriented situation.”
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Transcript

Automatic transcript. May contain errors.

0:00Chicago, 2011. A cop is murdered. Police and prosecutors swear they have the trigger man. He swears he didn't do it. How far will each side go to prove their right? Like it's just one bombshell after another, you know, where you're like, what? The story of a PlayStation, a brain-eating amoeba, and the relentless pursuit of justice. Off-duty, out now. Listen wherever you get your podcasts.

0:34Jenn Cutter: If you've used Babbel, you would. Babbel's conversation-based technique teaches you useful words and phrases to get you speaking quickly about the things you actually talk about in the real world. With lessons handcrafted by over 200 language experts and voiced by real native speakers, Babbel is like having a private tutor in your pocket. Start speaking with Babbel today. Get up to 55 % off your Babbel subscription right now. at babbel.com slash acast. Spelled B-A-B-B-E-L dot com slash acast. Rules and restrictions may apply. This episode is brought to you by Capital One. Capital One's tech team isn't just talking about multi-agentic AI.

1:17They already deployed one. It's called Chat Concierge and it's simplifying car shopping. Using self-reflection and layered reasoning with live API checks, it doesn't just help buyers find a car they love. It helps schedule a test drive, get pre-approved for financing, and estimate trade in value. Advanced, intuitive, and deployed. That's how they stack. That's technology at Capital One. Okay, I have to tell you, I was just looking on eBay where I go for all kinds of things I love and there it was. That hologram trading card. One of the rarest, the last one I needed for my set. Shiny like the designer handbag of my dreams.

1:53One of a kind. eBay had it, and now everyone's asking, ooh, where'd you get your windshield wiper?

1:59Jenn Cutter: eBay has all the parts that fit my car. No more annoying. Just beautiful. Millions of finds, each with a story. eBay. Things people love.

2:20Jenn Cutter: this is the daily tech news month in review for march 2026 we're going to look back on what the big stories of the month were and just try to help each other understand because this is a big month very big month very long month somehow and this month we have got anthropics battle with the u.s military over supply chain risks, the backlash against DLSS5, and OpenAI ends video generation development. And that is just the tip of the news iceberg. I'm Tom Merritt. I'm Jen Cutter. Let's look back on some of the biggest stories of March 2026. Now, before we get to the stuff we picked, we always like to ask a different large language model what it thought the big stories of the month were.

3:05Jenn Cutter: Here's the prompt that I gave perplexity this month. I said, I'm doing an episode of Daily Tech News Show, wrapping up the big tech stories of March. What should I pick? And it said, here's a tight end of March wrap slate. You can build an episode around. It gave me six bullet points. One is the AI infrastructure arms race, which to me is just an ongoing topic, not a story, but all about cloud and people building data centers and GPU demand, all that. Number two was ARM's first in-house AI chip. That's actually something I don't know that I thought was that big of a story yet. It is pretty big, though.

3:48Jenn Cutter: I don't know if it was a story of the month, but if you didn't hear ARM actually making a chip, not just licensing its design for the first time since the 90s. SpaceX IPO prep. Jen, I don't know about you, but I don't think the SpaceX IPO prep was on my list of big stories for the month. Nope. Just something keeping an eye on. It's like, okay, so if it comes back, at least we'll know when it started. Yeah. Amazon humanoid robotics push. If I were to pick a humanoid robotics story, it would be one out of China, not Amazon. But that's an interesting selection. Until I see one in an ordinary person's house, they're not ready.

4:28Jenn Cutter: uh then it said ai regulation and geopolitics uh foreign networking telecom hardware which we do have in the show um uh regulatory scrutiny over platforms which we we have in a more specific way in the show um interestingly it took what i think are some of the bigger stories and just chunked them all into this one segment and then business model shifts and the ai hangover to me this is more of a financial story. The market's beginning to question traditional software margins and all of that. Big story for sure, but less about the actual technology of it. And then it gave me a clean three-segment structure for the episode.

5:12Jenn Cutter: Segment one would be AI goes physical. Segment two, big bets and big exits. And segment three, the backlash phase. Yeah, I was surprised to see, like, when I'm looking at this in the notes, I'm like, oh, did Tom make that that breakdown but no perplexity just gave you that here is how to make it a show yeah yeah all right here are things that we considered uh we're not going to talk about them at length but these are things we considered that perplexity did not uh the jury reaching a verdict in the meta youtube social media trial in Los Angeles there's still a long way to go before the effects of that get felt but I think that's a I think that's going to be a continuing big story um paramount winning the bidding war for warner brothers we we kind of forget that that even happened at this point because it's not dramatic anymore but paramount uh finally won uh in getting netflix out of the agreement uh to to purchase warner brothers discovery uh block laying off 40 of the workforce that was huge the day it came out nobody really talking about it anymore Did you realize Mobile World Congress was this month, was March?

6:23I say this every month. It's like, oh my goodness, I can't believe that was this month. My brain has it as, oh, it happened ago.

6:31Jenn Cutter: A long ago. I have nothing specific other than to say ago. Yeah. Dark Sword was a pretty big one. That was close to making it into the show. That's the iOS vulnerability that was first identified as being targeted against Ukrainians and then someone put the source code up on GitHub. Amazon planning a smartphone comeback. Honestly, I thought this would get a bigger reaction. People just kind of shrugged. Yeah. I think it's the same thing. It's like they want to see it in a hand. Yeah. It's like when they announce the phone, call me sort of thing. Google making you wait 24 hours to sideload on Android as their safety mechanism was considered.

7:15Jenn Cutter: Airdrop coming to Samsung Galaxy S26 phones. Kind of a big story, maybe not the biggest of the month. And then Apple Maps introducing ads soon. They haven't done it yet, but they're going to as part of their business plans. OK, so those are all big stories of the month, but they are not the biggest stories of the month. So let's start with Anthropik's fight with the Department of Defense. This one has cooled down now. The only recent news towards the end of the month was that Anthropik and the Department of Defense gave their presentations in front of the judge. Judge asked a lot of questions.

7:50Jenn Cutter: This is not the main trial. This is Anthropic asking the judge to place an injunction against the department declaring it a supply chain risk. If you really want to get into the details of this, listen to Daily Tech News Show because we've done a good job of laying it all out. But definitely, definitely started the month hot with this story where not only was Anthropic in a very public breakup with the Department of Defense over the use of its tools, but then declared a supply chain risk and then Anthropik countersuing against being declared a supply chain risk. Yeah, man, a lot of that was happening when I first heard it.

8:29I thought it was even bigger than it ended up being. Like, it's pretty straightforward as to what the government wants versus what Anthropik says. Is it?

8:38Jenn Cutter: What do you think the government wants other than to punish them? Pretty much that. Like I said, I thought it was bigger in that they knew something that the rest of us didn't. Now I'm like, no, this might be a little more basic, a little closer to petty. Yeah, I've explained my opinions on this a lot. In the context of the month in review, this is not the last time we're going to hear about this. This is probably not the last month that this gets mentioned in our month wrap up. At this point, it is can Anthropic convince a judge to put an injunction against the supply chain risk designation? And the judge asked a lot of questions of like, why are they supply chain risk?

9:22Jenn Cutter: What is the evidence? You know, seem to be leaning towards that point of view. I have a feeling there's a good chance they get that injunction. And then what does the trial look like? You know, what is the actual trial where Anthropic tries to say it was illegal for them to do this? I tend to think they're going to turn on a lot of technicalities. I don't know that the department has done what the law requires, which is to notify Congress. This is our reasoning so that Congress can then weigh in on it. Right. That is the check in that law is the Department of Defense can declare somebody a supply chain risk.

9:59Jenn Cutter: but then they send it to Congress with their reasoning to say, we have done this. I don't think the department has done that yet. See, you are covering the base facts of this, where I think a lot of people are covering the tone of this because Canada declared Huawei absolutely cannot use them in major infrastructure. But that all went relatively quietly, despite the effect on Canadian-Chinese relations, just because it was all handled through the courts, through very low-key statements. through people wondering, well, who's going to sponsor Hockey Night in Canada now? Because they were all over that.

10:34Whereas this feels more like a blow up. And that's one of the reasons it's so big before anything gets actually resolved in a court.

10:43Jenn Cutter: Yeah. And that was a lot of the drama around it was, why did this go public? What happened between Anthropic and the department? And it seems like there was a little bit of a clash of cultures in the room. Because again, We covered all this on DTNS, but they weren't using Anthropic tools for automated warfare. They weren't using Anthropic tools for surveillance on Americans. Anthropic was just saying, we don't think you should do the first one or the latter one, the surveillance. And we don't think our tools are good enough for you to use automation. And somehow that turned into, you can't tell us what to do.

11:24Jenn Cutter: You're out of here. And then I think it's more clear that the leak of Anthropics CEO Amode in Slack kind of running down the administration didn't sit well. And that's when it got punitive. Yeah, well, as you said, it's going to come back. You'll hear more. I think somewhat related to this in the broad sense of government of the United States doing things that are harder to explain in technology. The US FCC has said they will not certify any routers and routers being defined as consumer residential routers if they are made or designed overseas. So if your router is fully made and designed in the United States, you're fine.

12:10Jenn Cutter: I don't think there are any routers that fit that definition. So everybody has to go and say, we would like an exemption to this certification rule, because if you don't get certified by the FCC, you can't import stuff. So that is another in this broad first topic, I guess, of like the U.S. government cracking down on technology. Yes. But everyone who has a router, you get to keep it, right? Yeah, I do think there's a little bit of misunderstanding is that this is any new design, any new router, which means routers that haven't even been imported into the US can still be imported if they've already been certified.

12:50Jenn Cutter: So you've got three or four months worth of routers out there that have not yet been launched, that have been certified, they've been accepted, they just haven't shipped. So I don't know when the next new design for certification would have come. But as soon as you hear that Netgear got an exemption, that's probably a good indication of when the next new design would have come. And this is going to be used to kind of nudge companies to figure out how to source some parts from within the United States, maybe move some manufacturing into the United States. and to keep companies they don't like. And I would think TP-Link might be among those.

13:27Jenn Cutter: Just keep them out of the market altogether. But again, the stuff on the shelves, the stuff you own, not affected at all. Even stuff that has been approved that hasn't even been sold or imported, not affected at all. This is only for new designs. Yeah, because I saw the headline. I'm like, oh no, what's going to happen? And I realized, wait, no, this is only going to start affecting me when I start hearing ISPs freak out about, oh no, we don't have anything to give you guys anymore. And honestly, they're going to approve enough of these by the time that would be a problem that I don't think anybody's even going to notice.

13:58Jenn Cutter: It just means they won't be able to buy from as many companies. So that could raise the price of those routers, which could raise the price of your ISP, maybe. But even that might not happen. That's only our first topic, folks. Hang on, there's more.

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16:38All right, we have some gaming news that ended up being a big, big story. We're going to start with the Google and Epic third-party store settlement, and I'm going to drop a whole bunch of numbers here for what is going to happen. In-app content will have a 5 % Google billing fee plus a 15 % service fee for new installs. Existing installs have a 20 % service fee. Flat rate app game purchases will be set at 15 % for new installs. Ongoing subscription service fees will be 10%. It's all kind of a modest reduction on the previous rates. But it is definitely showing that the previous 30 % Play Store share is extremely dead, which is why I think a lot of other folks want it.

17:23These new fees will be out in the US, UK and Europe by June 30th, where everyone else, like me and my family, I will have to wait because it's going to roll out on a continuing basis, but not wrapping up until September 2027.

17:38Jenn Cutter: I feel like the significance of this story is all in the past, right? Like now it's done like that. And thank you very much for going to the hard work of putting those percentages out there for people to understand what's happening. But now it's just going to be you can have a third party app store, which means Epic will have its third party app store. and that'll probably be it that most people will know the google play store and if they play fortnight or something else they'll know the epic store and that's kind of it yeah like that's why it became a gaming story more than a developer story because everyone's like oh good i can put a put fortnight back on because i now know yeah exactly a secondary market for people to buy phones that had fortnight already installed.

18:24So like I said, it's just, it's gaming news. It is, it is, was worth talking about, but until it is everywhere and like something big happens on a third-party app store, it's probably going to be pretty quiet for a bit there. But something that is not quiet. Last month in the wrap up, we covered in great detail the appointment of Microsoft's new gaming CEO Asha Sharma, and this month she revealed codename Project Helix. It is a next-gen Xbox console that'll play Xbox and PC games. And that's about all we know. There are zero further details. We don't have a launch window. We don't even know if it's going to happen the way they say it's going to happen because people like Sony are like, yeah, we might push back a next PlayStation.

19:11and the steam machine, which I have been very excited to cover and follow and see what happens, has gone quiet because they're like, yeah, we didn't have a price in the first place and we're still not going to talk about it because we got to work on sourcing.

19:26Jenn Cutter: Yeah, steam machine, I am predicting now is not coming out this year. It is a victim of the Ramageddon and probably the Strait of Hormuz holding up helium, which is going to slow down some other manufacturing. I just don't think we're going to get it. But yeah, Project Helix, that's kind of part two of our story from last month about Xbox's change of leadership. Yeah, but I didn't even think they'd say anything about it. I thought that, OK, like the CEO news has blown over. We're going to lay low for a while because there's too much other stuff happening. But no, they came out with like, hey, get excited for this new thing.

20:04And I'm like, OK, is that a market move or do you actually have more stuff to announce this year?

20:09Jenn Cutter: This year, yes. I think they rushed out saying something just to be like, hey, these new people are on the case. You know, don't worry. We're not just listening to your complaints. We're redirecting them to this new thing that may not happen anytime soon. But to me, the big gaming story this month was NVIDIA's, I can't fully call it disastrous, but widely reacted to announcement of DLSS 5. and the trailer showed some very interesting changes taking place because this is supposed to like boost all of your games and the the one that stole focus was Resident Evil's Grace Ashcroft a female character and the changes that were made to her face because you know she looks like originally somebody kind of working through all the zombies and awful stuff that goes on in Resident evil.

21:03And in the new one, suddenly she's got a fully made up face with all kinds of makeup. Her chin changed. She looks like an Instagram model. And that was going to provoke some reactions whether or not Capcom had anything to do with designing that face, which it sounded like they didn't. It was the AI deciding that that is what Grace should look like in the environment that she was in.

21:29Jenn Cutter: Yeah, I think people overreacted to this. Beauty is in the eye of the beholder. So whoever made that thought that that was a better look. And I think you're showing like, yes, you could think it's a better look, or you could think this. And there are other ways to look at it. I really think this is just an algorithmic tool that does on the fly upscaling in a new way that we haven't seen before. And they may have done it without the designer on board for the demo. In fact, it's not even clear if that's the case. My guess is probably somebody from the company was on board, but not everybody in the company had been told, right?

22:10Jenn Cutter: So I think that probably explains some people saying, we didn't know anything about this. I can't imagine NVIDIA didn't tell somebody, right? But this is going to be under the control of the designers ultimately in so much as a generative model ever can be. Yeah, because so NVIDIA CEO Jensen Wang came out to say, wait, wait, wait, studios will have full artistic control. And Bethesda backed them up because on X, they said that the support coming to Starfield and Oblivion Remastered is fully handled by them. But I got to figure NVIDIA and Bethesda kind of got together and and we're ready for this to to design it in a way that that it would work with what they had but for other games who do not necessarily have that partnership may not know exactly how to tie that in correctly and I think this is going to make a lot of companies come to NVIDIA and say like okay what do we have to do to work together on this so that it doesn't turn into hey it's a nice game you have there be a shame but that's but that's every DLSS conspiracy yeah dlss 4 is like that you have to work with nvidia to understand how to implement it if you don't implement it then it doesn't work on your game like there's nothing new about that no that's why like this blow up was uh also let's also be specific that this blow up is not going if you're like me and you run an older card you're not gonna see any of this stuff right and if you're running if you happen to be one of the lucky one percent that have a 50 series card you can turn it off if you don't like it you can not run it on your game so i i get p i i definitely am with people who are like i don't know if that actually looks better to me or not i think in most of the cases i can see why it would be perceived as an upgrade what i don't understand is people saying this is slop i don't think it's slop and bethesda and others are like no we we can put this filter on and we can see how it works.

24:09Jenn Cutter: And there are controls we can adjust to make it fit the way we want it to look. Just like you can with, I think a lot of people don't use generative models. They don't know how they look. You can nudge it to do things. You just tell it to do things and it does it that way. And this is a much stricter version of a generative model. It's meant to do one thing, DLSS 5. It's not going to hallucinate Wikipedia articles. It's not going to create a version of Citizen Kane that has Daffy Duck in it. It's just going to do what you tell it to do. And there are levers that you can control. Now, within that, you don't actually control the algorithm itself, but that's actually not that much different than DLSS4 or DLSS3, right?

24:54Jenn Cutter: You had the levers, you put it in, you see how it worked. If you liked it, you left those. If you didn't, you fine tune the levers. Yeah. I talked to a bunch of environmental artists, like people who do like the very cool backgrounds, all of the little bits and pieces you find in the world for flavor. And they were the ones angriest about this. I wasn't able to reach any like main character designers. But for the people who were like, I designed this beautiful, I'm going to use the overused word, atmospheric area that has all this light streaming in in this particular direction to hit this particular texture, to show this particular object.

25:28And they were kind of upset that they felt it got blown out and kind of hidden and in some cases replaced by this new tech. And I actually asked them, it's like, okay, so guys, like with the improved lighting, because a lot of people, gaming's also got an aging audience and some of them really like the brighter screen that it shows. And as someone who's not a horror game fan, when I did used to attempt to play scary kind of games, you know how you set the brightness at the start of the game? I would always crank that all the way up. I want to see everything coming at me. For the older CRT days, it's like, I'm just going to crank this brightness so that I can see everything the game will let me see.

26:10And it is good that people have those options to play in a way that they feel better with. But yeah, this reaction just blew up in a way that none of the previous ones did.

26:21Jenn Cutter: Yeah, it definitely surprised me. The first article I read was from The Register, which is usually kind of on the edge of being overreactive and they were praising it. And I thought, oh, okay, so this, this is actually a pretty decent implementation. Uh, and then every other story trashed it that I read after that. Uh, and I think the emotions around AI really got mixed into this. Uh, the fact of the matter is if you are one of those background artists that like, like Jen was talking about the company you work for can choose to make sure that this doesn't stomp all over your work. They should include you into how it is fine-tuned to only improve your work or not touch it at all.

27:05Jenn Cutter: You can do that with DLSS 5. And if you're not being done, then the company isn't doing the things that they should do. But again, I don't know that... And feedback at dailytechnewsshow.com, if you've got a reasonable reason of like, actually, here is what is actually different about 5 that I don't like, that isn't just I hate AI. But to me, it's like, yeah, every time they do ray tracing or anything else, it changes the design on the fly. But you learn like, okay, this is how you make sure to set it up so that when it does change it, it changes it in a way you like, not in a way you don't like.

27:42Yeah, I'm going to be watching Digital Foundry. They always do great tech breakdowns on graphical fidelity and stuff because yeah their first thing was really positive on it everyone yelled at them they did a podcast kind of apologizing for it uh and i'm curious to see how they cover it next when uh when again more people than first look uh yeah get to get to play well and this is on stage this

28:08Jenn Cutter: is an on stage demo too like we don't actually know how it's going to be implemented by developers so yeah uh bethesda obviously the first games i'll be looking at to see how they do in fact implemented with before or after shots. All right. That is two of the three or four if you're a patron. So hold, please, for the next one.

28:32Chicago, 2011. A cop is murdered. Police and prosecutors swear they have the trigger man. He swears he didn't do it. How far will each side go to prove they're right? Like it's just one bombshell after another. You know, where you're like, what? The story of a PlayStation, a brain-eating amoeba, and the relentless pursuit of justice. Off-duty, out now. Listen wherever you get your podcasts. This episode is brought to you by Capital One. Capital One's tech team isn't just talking about multi-agentic AI. They already deployed one. It's called Chat Concierge, and it's simplifying car shopping. Using self-reflection and layered reasoning with live API checks, it doesn't just help buyers find a car they love.

29:20It helps schedule a test drive, get pre-approved for financing, and estimate trade in value. Advanced, intuitive, and deployed. That's how they stack. That's technology at Capital One.

29:34Jenn Cutter: We talked a lot about what should be the third topic in here because it was a huge month, as we mentioned earlier. But I think OpenAI scrapping Sora is bigger than it sounds. And I'll explain why. Jen, tell me what you think. This isn't just OpenAI ending an app. If they had canceled Sora, I'd be like, yeah, that's an interesting story. It was a social media play that didn't work. But they are ending video generation development. So they are ending Sora and their API and taking video generation out of chat GPT. So you will not be able to generate video with OpenAI tools anymore. And the reporting around this and some of the things OpenAI have said, including things that they said internally, indicate that they are hyper-focused now on being a coding software company.

30:29Jenn Cutter: That is what they do the best. That is where they think they can win against Anthropic, where Cloud Code has gotten a lot of the praise recently. And so they're going to pour all their resources into that. Video generation, incredibly expensive to do and wasn't bringing the return. So they're like, let's save the compute that we have for coding and a super app for coders versus spending money on video generation where we had a deal with Disney that we've now canceled. that may or may not have made any money, but we weren't getting any other studios to bite yet. And so that's an entirely different business.

31:07Jenn Cutter: We'll leave that to somebody else. Yeah, it's hard not to read that as they have decided that Nano Banana 2 can pay all the video costs. Yes, absolutely. We don't need this anymore. Or VO, I guess, not Nano Banana. But yes, exactly. Yeah, yeah. Yeah, I was surprised. After that Disney deal, I thought like, okay, they're going to be quiet while they work this out and do this huge push with all the characters. And we didn't see that. We saw all the press about, hey, this deal's coming and here are all the characters that you're going to be able to use. And then this came so out of nowhere. Everyone was kind of thinking like, huh, so what lawsuit was coming that they are ducking immediately?

31:46Jenn Cutter: Yeah, I don't think so. Yeah, I don't think so either. With the other stuff OpenAI is doing, it's like, yeah, okay, they are just decided, narrow focus, everything else is gone. We are doing this, as you said. and uh yeah it did come out as a surprise to some of the people who are working on this right now if if there were a huge lawsuit company coming they wouldn't have been able to get disney to agree to this or it's a lawsuit that will still come right so canceling the deal with disney doesn't get you out of a lawsuit uh from from my way of thinking uh and they canceled the deal with disney disney didn't cancel it uh that's pretty clear now so to me it's it's they were like we thought maybe we could get Disney and then maybe get legendary and then maybe get a production house.

32:35Jenn Cutter: And then, you know, like we thought we could get a bunch of different companies to do this. Uh, maybe even some brands that would be like, come play with Aunt Jemima, you know, or whatever. Right. Uh, and, and I think what they realized was we got Disney and that's it. nobody else is coming. And so this is outside of our core competency for lots of other reasons. We've decided to focus on coding. So we're just going to ditch the expensive business that doesn't look like it's going to work out for years. Yeah. I'm wondering if this will have ripple effects on the AI music deals that are going out right now.

33:11Because there was a big thing about like, oh, there's all these partnerships coming with AI companies and actual labels. Like remixing and stuff. Yeah, for remixing and stuff. So we got all the press about those deals that are coming, but nothing big has happened since. So I wonder if that's one of the things like now that a major company is exiting generated video, will other major companies decide to exit music? Though, again, that is a much lower compute cost than the video, which is at the highest end of expensive for this.

33:42Jenn Cutter: I think a lot of people want to look at these stories from the perspective of, I don't think this should happen and it's a bubble. Yes. And so I'm looking for signs that it's a failure. And I don't think that explains these stories. OpenAI is not getting out of video because it's a bubble. OpenAI is not getting out of video because they're worried about lawsuits. OpenAI is getting out of video because they don't think they can make as much money off of it. which is a little bit about the bubble, but get rid of the bubble and they still want to focus and make money off of stuff. They are looking at the competition in the landscape and saying, oh, we can't just continue to throw stuff against the wall and see what sticks anymore.

34:26Jenn Cutter: We've got Mistral, we've got Anthropic, we've got Google and Google has turned 180 degrees around from where they were two years ago and is now leading in a lot of stuff. And open AI is realizing that they could be the friendster of this story if they're not careful, you know, and they definitely would rather be the Facebook of the story, not even the MySpace. And so they, they need to focus on what they do best and where they think they are best at. And I think that's coding. Yeah. I guess I can't really call them a first mover in this, but you kind of can when they just went big, they're like, okay, like this huge thing gone over done.

35:07We are going to do this and only this and not do like adult stuff anymore.

35:12Jenn Cutter: I mean, chat GPT is what I'm thinking of as the first mover, right? Like that just blew up the space that everybody kind of knew about, but now everybody knew about it. Uh, and yeah, we'll see if chat GPT is still even a thing people talk about or is, or, or right now it's kind of a generic for when you're talking about chat bots. I don't know if it'll continue to be uh i have an example of that literally last night we had our team photos done a while ago which was hilarious and fun as an adult uh we should have done the hockey card thing too but we didn't but uh because we just did them like like at the rink and other photos uh in the room and stuff uh a teammate who i did not know knew anything about uh tech at all then posted in the group chat hey i fixed our images and someone else goes like wow i didn't know you were good at Photoshop.

36:01This looks amazing. She's like, Oh, no, no, no. I just put it in chat GPT. And I was like, Oh, I did not know that like you were into this kind of stuff. Like it has hit the normie.

36:12Jenn Cutter: Definitely. Definitely. But yeah, so as a shorthand, yes, but she was specifically talking about chat GPT. And I think that's still true now, for sure. In a year or two, will that still be true? Especially if they're pivoting to more hardcore codex related, maybe not fully enterprise, but businessy oriented situation. Are they going to become more sales force than Google? Yeah. We may be talking about Gemini. I like your thought about ChatGPT going like Xerox and Kleenex is a ubiquitous term. Yeah, exactly.

36:49What were you thinking about about all of these topics? What do you think were the biggest stories of the month that either we or AI had missed? We will take all of your insights on stories over at feedback at dailytechnewshow.com.

37:03Jenn Cutter: Yes, thank you for being along for Daily Tech News Show. You're the folks that keep us in business by becoming a patron at patreon.com slash GTNS. Patrons, stick around. We got one more story for you. We're going to talk about Apple's new approach to product announcements and that MacBook Neo. Stay here. Bye, everybody else. The DTNS family of podcasts, helping each other understand. Diamond Club hopes you have enjoyed this program.

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From the publisher

Tom Merritt and Jenn Cutter look back on the biggest tech stories of March. 


Starring Tom Merritt and Jenn Cutter.


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