Tech Brew Ride Home - Tue 01/24 – ALL The Details On Apple’s Headset

Episode Date: January 24, 2023

Alright. It’s on. Mark Gurman has literally all the details on Apple’s forthcoming mixed reality headset. The DOJ might already have sued Google by the time you hear this. Amazon adds subscription prescriptions as a service. And it turns out that AI CNET used was good at… plagiarizing. Sponsors: HopelessMope.com code: ridehome (Listener ad!) The Business Of Tech (Listener ad!) Links: How Apple’s Upcoming Mixed-Reality Headset Will Work (Bloomberg) DOJ Poised to Sue Google Over Digital Ad Market Dominance (Bloomberg) Amazon launches RxPass, a $5/month Prime add-on for all-you-need generic drugs covering 80 conditions (TechCrunch) CNET's AI Journalist Appears to Have Committed Extensive Plagiarism (Futurism.com) RSVP For The Listener Meetup This Saturday: https://lu.ma/tx4vez9x Learn more about your ad choices. Visit megaphone.fm/adchoices

On April 4th, 2023, around 2 in the morning, a man was found stabbed multiple times on a sidewalk in downtown San Francisco. Hey, who did this to you? What happened next turned the story into a political firestorm. Reports have identified the victim as Bob Lee, the founder of Cash App. From Bloomberg Podcasts, this is Foundering, the Killing of Bob Lee, beginning April 16. Welcome to the Tech meme right home for Tuesday, January 24th, 2023. I'm Brian McCullough today. All right, it's on. Mark German has literally all the details on Apple's forthcoming mixed reality headset. The Department of Justice might already have sued Google by the time you hear this. Amazon adds subscription prescriptions as a service. And it turns out that that AI C-Net used was good at plagiarizing. Here's what you missed today in the world of tech. This morning, Mark German, basically gave us all the details on the forthcoming Apple mixed reality headset. You might be tired of these rumor stories that we've had one after another these past few weeks,

but this is kind of how it works. You get hints that Apple might do something, then you get a drip, drip, drip of details and speculation. Then a few months before the whole new product line is released, you get a big data dump where you basically think you know just about everything about the device, even though usually the actual release has about 30% surprises that never even made it to the rumor mill. It happened this way with the watch, with the iPad, with the iPhone. If you're old enough to remember that, though, Lord, the iPhone rumor cycle. They didn't call it the Jesus phone for nothing. Anyway, Mark basically gives us all the deets on the headset, as I said, eye and hand tracking, a 3D iOS-like interface,

AR and VR modes that you can switch between a Mac external display feature and more, including that whole battery pack and why the battery pack. This is basically the whole shebang, so I'm going to quote super liberally, quote, the roughly $3,000 device due later this year under the likely name of Reality Pro will take a novel approach to virtual meetings at immersive video. Here's how it will work. The headset will have several external cameras that can analyze a user's hands, as well as sensors within the gadget's housing to read eyes. That allows the wearer to control the device by looking at an on-screen item, whether it's a button, app icon, or list entry to select it. Users will then pinch their thumb and index finger

together to activate the task without the need to hold anything. The approach differs from other headsets, which typically rely on a hand controller. The headset will have two ultra-high resolution displays developed with Sony Group Corp to handle the VR and a collection of external cameras to enable an AR pass-through mode. That means users will see the real world through the cameras positioned on the headset. Apple will offer users with prescription glasses, custom lenses that sit within the enclosure itself. The device will have a so-called digital crown like the Apple Watch that lets users switch between VR and AR. When in VR, the wearer is fully immersed. When AR is enabled, the content fades back and becomes surrounded by the user's real environment. Apple expects this

to be a highlight of the product, according to the people who asked not to be identified because the project is still under wraps. The headset's FaceTime software will realistically render a user's face and full body in virtual reality. Those avatars will allow two people, each with an Apple headset to communicate and feel like they're in the same room. The technology differs from virtual meeting rooms on meta's headset, which uses a more cartoon-like avatar of the user. Because of the immense processing power necessary for the feature, the headset will only support realistic avatars during one-on-one video chats. It will still allow for FaceTime sessions with several people, but additional users will be displayed as an icon or emoji Apple's customized emoji. Apple plans to

unveil the device as early as this spring, though the schedule could still shift, according to the people that would let the company discuss the product at its annual conference for software developers in June and then release it later this year. As with some of Apple's earlier big bets, the company plans to start slow. It's aiming to begin early production of the device as soon as February in China and is considering launching the product in the U.S. only to start. The price tag is also expected to limit the product's appeal, and Apple is already working on a cheaper version for release in late 2020. or early 2025, that could be closer to $1,500.

That's what meta-charges for its mixed-reality headset. Apple expects to sell about 1 million units of the new headset in the first year. That compares with the more than 200 million units for the iPhone, the Cupertino-California-based company's biggest moneymaker. In a rare move, it's also not planning to make a profit on the initial version, even at the high price, indicating that the company is taking a long-term view of the platform. Immersive video watching will be a core feature of the new device. Apple has discussed developing VR content for the platform with about a half a dozen media partners,

including Walt Disney and Dolby Laboratories, and the tech giant is working to update its own Apple TV Plus material to work with the headset. As part of the push, Apple bought streaming company Next VR in 2020, aiming to create sports content in VR. Apple is planning for the headset to have a dedicated video watching feature that can make viewers feel like they're seeing a movie, on a giant screen in another environment, such as a desert or outer space. But while the headset's video will be immersive, its speakers will be less powerful.

So users will need to wear AirPods earbuds to get full spatial audio, a surround sound effect. The device will also have productivity features, including the ability to serve as an external monitor for a Mac. With that feature, users will be able to see their Macs display in virtual reality, but still control the computer with their trackpad or mouse and physical keyboard. The headset's operating system, internally called XROS, will have many of the same features as an iPhone and iPad but in a 3D environment. That includes the Safari web browser, photos, mail, messages, and the calendar app. And it will also have apps for the company's services such as the App Store to install third-party software, Apple TV Plus, music, and podcasts.

The company is working on health tracking functions as well. The experience should feel familiar to Apple users when they put the headset on, the main interface will be nearly identical to that of the iPhone and iPad, featuring a home screen with a grid of icons that can be reorganized. Users will be able to pin widgets such as the weather, calendar appointments, email, and stock market performance among their app icons. When users need to input text, they can use the Siri voice assistant or rely on an iPhone, Mac, or iPad keyboard. Unlike with an Apple Watch, though, an iPhone isn't required for operation. The company is developing technology that will let users type in mid-air with their hands, but such a feature is unlikely

to be ready for the initial launch. Gaming is expected to be a popular offering from third-party developers, and Apple has created its own underlying engine to power VR games. In 2017, the company released AR kit and other tools to help developers prepare augmented reality experiences on the iPhone. This helped set the stage for programmers to build apps, games, and services for the headset. The Apple device will include a variation of the M2 chip found in the company's latest Macs, as well, as a dedicated processor for graphics and mixed reality experiences. That second chip will be dubbed the reality processor according to trademark applications filed by the tech giant. But making the processors powerful enough brought another concern, having the device overheat while it's on a user's face.

To address that problem, Apple made the decision to offload the battery from the inside of the headset to an external pack. It rests in a user's pocket and connects over a cable. Another tweak is the inclusion of a cooling fan like on high-end max. The headset can last about two hours per battery pack in line with rival products. The battery, however, is large, roughly the size of two iPhone 14 Pro Maxes stacked on top of each other, or about six inches tall and more than half an inch thick. Still, some internal prototypes for software development have a built-in battery and charge over USBC. The relatively brief battery life, about 20 hours less than Apple's latest MacBook Pro, could create its own hassles. If users want to watch multiple movies or play games for hours at a time,

they may need to buy multiple batteries and frequently swap them out. Apple has acknowledged those challenges internally, and it's been trying to set realistic expectations for the product. One benefit of the device the company believes is that it could spur customers to visit Apple retail stores, not necessarily to buy the product, but to try it out. They may then purchase another device such as an iPad or AirPods. To show off the new headset, Apple is creating a store within a store concept, an area within its retail outlet, dedicated to demonstrating the product. The company did something similar when it launched the Apple Watch, which is now central to a $41 billion division. The initial headset will be made from aluminum,

glass, and cushions, and be reminiscent of Apple's $550 AirPods Max headphones. The product will have a curved screen on the front that can outwardly show a wearer's eyes with speakers on the sides and a headband that helps fit the device around a user's head. The eye and hand tracking may end up being the most memorable element of the headset, as with a its earlier big bets, Apple likes to include a groundbreaking interface that sets its products apart from competitors. With the iPod, it was the click wheel. With the iPhone and iPad, it was the multi-touch approach, and with the Apple Watch, it was the digital crown. Now Apple hopes the headset's sci-fi-like interface will make its latest product a winner, end quote. This might be happening today, might even be

happening as I say these words, so take your pick, either use this as preparation for the news or the actual news itself. Sources are saying that the U.S. Department of Justice is poised to sue Google this week over its domination of the U.S. digital ad market, the fifth major U.S. case challenging Google and Alphabet's business practices, quoting Bloomberg. The lawsuit will mark the Justice Department's second monopoly case against the company, which is the number one player in the $278.6 billion U.S. digital ad market, controlling most of the technology used to buy, sell and serve online advertising. The lawsuit would also be the fifth major case in the U.S. challenging the company's business practices. State attorneys general have filed three separate

suits against Google, alleging it dominates the markets for online search, advertising technology, and apps on the Android mobile platform in violation of antitrust laws. The Mountain View California-based company is number one in the $6.26.86 billion global digital ad market, according to 2023 estimates by research firm e-marketer, with the U.S. representing the biggest piece. Alphabet's ad operations are expected to bring in $73.73.73.8 billion in U.S. digital ad revenue in in 2023. Google runs an ad buying service for marketers and an ad selling one for publishers, as well as a trading exchange where both sides complete transactions and lightning-fast auctions. The department's scrutiny of Google's control of the ad tech market goes back to the Trump administration.

The DOJ under then Attorney General William Barr sued Google over its search business instead, alleging the company used exclusive distribution deals with wireless carriers and phone makers to lock out competition. That case is due to go to trial in September, end quote. Quick reminder that while Amazon has had its struggles of late, the big story of recent years for Amazon, were its attempts to break into health care, and that is continuing apace. Amazon has launched RX pass, or pre-ex, prescription pass, but it's RX pass, letting U.S. Prime users pay $5 per month to get as many generic versions of medications as needed, starting with drugs for 80 different ailments, quoting TechCrunch.

Those drugs include, for example, Lozartin, the generic for the hypertension drug Kozar, and Sertraline, the generic for the antidepressant Zoloft and hair growth pills, and it would not comment on its plans to expand the list. The 80 conditions were selected, to speak, to make it an offer attractive to a wide base of potential customers. Dr. Vin Gupta, the chief medical officer of Amazon Pharmacy, said that more than 150 million people in the U.S. already take one or more of the medications in the RX pass offering. In addition to RS. Pass, not to be confused with another health care service for B2B called RX Pass, only being available to U.S. Prime users, one more sweetener for Amazon's membership tier that started with

free shipping but now Nets services like entertainment, grocery shopping, services, etc., to attract to repeat purchasing. Our X-Pass is not open to people on government medical plans like Medicare or Medicaid. Amazon Pharmacy is a provider for these and thus cannot offer direct. One pays the $5 out of pocket, not on insurance. You sign up for it in your app as a prime user under pharmacy. This is a big and pretty bold move for Amazon. $5 a month is the fee regardless of the amount a customer orders, meaning the service is aimed at those who are currently already paying more than this per month for their meds for these 80 conditions or think that they might, over time, need to pay more or are looking for one-stop services with a predictable cost each month, end quote.

And finally, remember that story about how CNET apparently used artificial intelligence to write a bunch of its tech stories? Well, an investigation by Futurism.com claims to have found extensive evidence that the AI used by CNET appears to have plagiarized the work of various comparisons. editors and human writers at bank rate, and even CNET itself. Quoting Futurism. Futurism found that a substantial number of errors had been slipping into the AI's published work. CNET, a titan of tech journalism that sold for $1.8 billion back in 2008, responded by issuing a formidable correction and slapping a warning on all the bot's prior work, the learning readers that the post's content was under factual review.

Days later, its parent company, Red Ventures, announced in a series of internal meetings that it was temporarily pausing the AI-generated articles at CNET and various other properties, including bank rate, at least until the storm of negative press died down. Now, a fresh development may make efforts to spin the program back up even more controversial for the embattled newsroom. In addition to those factual errors, a new futurism investigation found extensive evidence that the CNET AI's work has demonstrated deep structural and phrasing similarities to articles previously published elsewhere without giving credit. In other words, it looks like the bot directly plagiarized the work of Red Ventures competitors, as well as human

writers at Bankrate and even CNET itself. Jeff Shatton, a professor at Washington and Lee University, who has been examining the rise of AI-enabled misconduct, reviewed numerous examples of the bot's apparent cribbing that we provided, and he found that they, quote, clearly rose to the level of plagiarism. We asked Shatton, what would happen if a student turned in an essay with a comparable number of similarities to existing documents with no attribution. Quote, they would be sent to the student-run ethics counsel and given the repeated nature of the behavior would almost certainly be expelled from the university, he replied. The bot's misbehavior ranges from verbatim copying to moderate edits to significant rephrasings, all without properly crediting the original. In at least some of its

articles, it appears that virtually every sentence maps directly onto something previously published elsewhere, end quote. Click through to the piece itself to read some of the examples cited. Okay, the very bottom link in today's show notes. Chris has spun up a Luma link so you can RSVP for Saturday's meetup and get notifications and reminders, the whole nine. Please do RSVP if you can so we can get an idea how many of you are coming. Chris and I are coming, of course, and a few folks I know from our portfolio companies as well. So should be fun.

Talk to you tomorrow.