VOLUME 69

Hope you’re having a great week. Let’s dive into this week’s biggest stories in tech and culture.

— Jacob Pace

Google’s Quantum Breakthrough Boosts Stock by Over 4%

What happened: Alphabet Inc. shares rose by 4.6% following Google’s announcement of its quantum computing milestone with the Willow chip. CEO Sundar Pichai showcased the chip's ability to solve computations in under five minutes—tasks that would take traditional supercomputers 10 septillion years.

The big picture: Quantum computing remains in its early stages, but this announcement reflects tech giants’ growing investments in the sector. This is particularly significant as Google has been perceived as losing ground in the AI race to competitors like OpenAI and NVIDIA. Achieving this quantum computing milestone gives Alphabet a much-needed advantage, reasserting its position as a leader in cutting-edge technology.

OpenAI’s Sora Brings Text-to-Video AI to the Mainstream

What happened: OpenAI launched Sora, its new AI-powered video generation model. Sora enables users to create high-quality videos from text prompts, offering advanced features like image animation and video remixing. The tool is available to subscribers, marking OpenAI’s push to expand its content-creation offerings.

What they’re saying: OpenAI CEO Sam Altman said the model “democratizes creativity” but acknowledged the need for robust safeguards to prevent misuse. Early adopters have praised the tool's capabilities but flagged occasional errors in rendering prompts accurately.

Reddit Enters the AI Race with Conversational Search Tool

What happened: Reddit unveiled an AI chatbot called Reddit Answers, designed to provide conversational summaries and direct users to relevant discussions. Currently in beta for select users, the feature seeks to enhance search functionality across Reddit's sprawling archive of posts.

Why it matters: Reddit Answers marks the platform’s effort to compete with search engines like Google and conversational AI tools such as ChatGPT. The move positions Reddit to leverage its vast repository of community-driven content as a competitive advantage.

By the numbers: Reddit’s stock climbed by 4.8% after the announcement, continuing its upward trajectory following the company’s IPO earlier this year.

TikTok Shop Hits $100 Million in Black Friday Sales

What happened: TikTok Shop reported over $100 million in U.S. sales during Black Friday, cementing its growing influence in e-commerce. Launched domestically in September 2023, the platform has outpaced competitors like Shein and Temu during the holiday shopping season.

Behind the scenes: Regulatory concerns about TikTok's parent company, ByteDance, persist in the U.S., but its e-commerce success demonstrates resilience amid scrutiny.

What to watch: With the holiday season in full swing, TikTok Shop could set additional sales records, pressuring traditional retailers and rival e-commerce platforms to innovate or risk losing market share.

That’s all for this week! See you next time.