Silicon Valley Tech News Roundup – April 9th

President Biden met with science and technology advisors to discuss AI – 4/4

On Tuesday, President Biden met with the President’s Council of Advisors on Science and Technology (PCAST) to discuss the “risks and opportunities” of artificial intelligence.

At the beginning of the meeting, President Biden said: “Tech companies have a responsibility, in my view, to make sure their products are safe before making them public.” He was also asked if AI is dangerous, to which he said: “It remains to be seen. It could be.” Furthermore, he added: “AI can help deal with some very difficult challenges like disease and climate change, but it also has to address the potential risks to our society, to our economy, to our national security.”

President Biden also drew parallels with social media and its use and how powerful technologies can inflict harm without proper safeguards. He stated: “Absent safeguards, we see the impact on the mental health and self-images and feelings and hopelessness, especially among young people.” He again called on Congress to pass bipartisan legislation that would curtail personal data technology companies can collect and protect children by banning advertising targeted at them. The legislation would also make tech companies prioritize health and safety in product development.

Samsung posts its lowest profit in 14 years, announces a cut in chip production – 4/6

In a statement on Friday, Samsung Electronics announced it is estimating a 96% drop in quarterly operating profits. The company also stated it would make a “meaningful” cut in its memory chip production.

The preliminary earnings statement estimated the operating profit fell to 600 billion won ($455.5 million) in January – March (down from 14.12 trillion won last year). It is the lowest profit the company posted in 14 years.

The company’s statement reads: “Memory demand dropped sharply … due to the macroeconomic situation and slowing customer purchasing sentiment, as many customers continue to adjust their inventories for financial purposes… We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured.”

The demand for memory chips rose sharply during the first year of the pandemic, which led to global shortages. However, semiconductor chip producers are having trouble balancing the new demand and their current inventories.

While the company did not specify the size of the planned cut, experts interpreted the announced full-blown cut as a strong signal to investors who welcomed the company’s plans as a way to preserve pricing power. Samsung so far resisted the move to cut chip production.

Virgin Orbit files for Chapter 11 bankruptcy – 4/4

Virgin Orbit has filed for bankruptcy in the United States. In a statement published Monday, the California-based company announced it filed for Chapter 11 bankruptcy. It means the company can still do business, get protection from creditors, and try to restructure its debts in the meantime.

Dan Hart (the CEO of Virgin Orbit) stated: “While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business.” Hart also said he believes the company will have a “wide appeal to buyers as we continue in the process to sell the company” because of its cutting-edge technology.

Richard Branson founded Virgin Orbit in 2017, and it made small rockets. In January, the company failed to complete its first-ever satellite launch from UK soil because the engine overheated. The news about the bankruptcy comes weeks after the company halted its operations. Last week, Virgin Orbit also announced it would cut 85% of its 750 people workforce.

Bob Lee (the founder of Cash App) died – 4/6

Bob Lee (the founder of Cash App and chief product officer at MobileCoin) died from injuries sustained after being stabbed in San Francisco. He was also the first chief technology officer at Square.

Josh Goldbard (the CEO of MobileCoin, a cryptocurrency and digital payment startup) confirmed the news. In a statement to CNN, Goldbard said: “Our dear friend and colleague, Bob Lee passed away yesterday at the age of 43, survived by a loving family and collection of close friends and collaborators… Bob was a dynamo, a force of nature. Bob was the genuine article. He was made for the world that is being born right now, he was a child of dreams, and whatever he imagined, no matter how crazy, he made real.”

The San Francisco Police Department released a statement about Lee’s stabbing: “Officers rendered aid and summoned medics to the scene. The victim was transported to a local hospital with life-threatening injuries. Despite efforts by first responders and medical personnel, the victim succumbed to his injuries.” London Breed (the Mayor of San Francisco) called Lee’s homicide “a horrible tragedy” and said the law enforcement is still investigating.