The Drum's Daily Briefing: Wayve gets $1bn, retail sales flat, Buffett AI nuclear claim
Our quickfire analysis of the brand, marketing and media stories that might just crop up in your meetings and conversations today.
Wayve EV tech brand attracts investment
UK EV brand Wayve gets $1billion investment
Despite electric vehicle brands Tesla and BYD facing challenging times with falling sales in recent months, UK self-driving technology start-up Wayve is on the up after securing more than $1bn (£800m) of investment to develop the next generation of artificial intelligence-powered vehicles.
The $1.05billion investment is backed by Japan’s SoftBank along with the California chipmaker Nvidia and Microsoft, and is the biggest investment to date in a European AI startup.
Wayve, which was founded in London in 2017, will use the funds to develop and launch the first 'embodied AI' technology for self-driving vehicles in the UK. Embodied AI will enable automated vehicles to learn from and interact with a real-world environment, including the ability to learn from situations that do not follow strict patterns or rules, such as unexpected actions by drivers or pedestrians.
Wayve’s technology is integrated into six vehicle platforms including electric cars such as the Jaguar I-Pace and the Ford Mustang MachE, as part of advanced driver assistance systems.
UK retail brands face stagnant months
Retail and restaurant brands in the UK are ‘enjoying’ a dismal start to the year as bad weather and ongoing worries about spending amid high-interest rates and energy bills have kept consumer spending flat.
Sales were flat during March and April against the same period a year ago, according to the latest figures from the British Retail Consortium (BRC)and advisory firm KPMG. That was despite prices continuing to rise with inflation, suggesting a drop in the volume of items sold in the key Easter period.
In the four weeks to the end of April, sales were down 4%, but this number was partly affected by Easter falling early this year at the end of March. Non-food sales were the hardest hit, down almost 3% with in-store and online orders down.
The number of shoppers visiting high streets and other retail destinations slumped more than 7% in April, far worse than the 1.3% fall recorded in March, because of poor weather and the shift in the timing of Easter, according to separate data out last week from the BRC and monitoring firm Sensormatic Solutions.
The report also found travel was being prioritized, with airline spending up nearly 10%. By contrast, clothing sales were down 1.8%, according to the lender, as spring showers deterred shoppers from visiting the high street, while restaurants had another challenging month, down 12.6%, a similar fall to that in February.
AI is the next nuclear weapon says Buffett
Warren Buffett has likened the creation of AI to the creation of nuclear weapons during a speech at his annual shareholder meeting.
Issuing a stark warning about the potential dangers of the technology, he said: “We let a genie out of the bottle when we developed nuclear weapons. AI is somewhat similar — it’s part way out of the bottle.”
He acknowledged that he has little idea about the tech behind AI, but said he still fears its potential repercussions. His image and voice were recently replicated by an AI-backed tool, he said, and they were so convincing that they could have fooled his own family. Scams using these deep fakes, he added, will likely become increasingly prevalent.
“If I was interested in investing in scamming, it’s going to be the growth industry of all time,” he told the crowd.
Buffett also acknowledged that the technology could change the world for the better, but said he isn’t sold yet. “It has enormous potential for good and enormous potential for harm,” he said. “And I just don’t know how that plays out.”
The AI explosion has already transformed workplaces worldwide, and nearly 40% of global employment could be disrupted by AI, according to the International Monetary Fund. Industries from medicine to finance to music have already felt its effects.
Beer brand Heineken to re-open 60-plus UK pubs
Heineken is set to reopen 62 'lost' pubs across Britain after they were shut amid the cost-of-living crisis.
The larger giant's retail arm, Star Pubs & Bars, is planning to reopen or upgrade more than 600 pubs across the UK in a £39million expansion in a bid to attract punters working from home.
The move will include reopening more than 60 pubs in 2024, with 94 other sites set for refurbishments and the rest set to receive other varying upgrades.
It comes as the British Beer and Pub Association reported that more than 500 pubs shut permanently last year, leaving 45,306 still running in the UK.
The brewing giant said it wants to 'broaden each pub's use and appeal' following a surge in the number of people working remotely.