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A recent study from the <keyword id="23681499" type="General" weightage="20" keywordseo="Ludwig-Maximilian-University" source="keywords">Ludwig Maximilian University</keyword> of Munich has shed light on a growing concern in the world of <keyword id="20016198" type="General" weightage="20" keywordseo="journalism" source="keywords">journalism</keyword>: the comprehensibility of <keyword id="23681497" type="General" weightage="100" keywordseo="AI-generated-news" source="keywords">AI-generated news</keyword> articles. Despite advancements in artificial intelligence, the study found that readers still prefer traditionally crafted news pieces. The study surveyed over 3,000 UK-based online news readers, each evaluating one of 24 <keyword id="23681500" type="General" weightage="20" keywordseo="news-articles" source="keywords">news articles</keyword> — half written by humans and half produced by automation. The findings? Despite editorial oversight from journalists, AI-generated articles fell short on comprehensibility compared to their human-authored counterparts. Lead author Sina Thäsler-Kordonouri noted that readers found automated articles “significantly less comprehensible” overall. One key complaint revolved around language choice in AI articles, with readers pointing out an excess of unusual or overly complex words. Another significant sticking point was how AI-handled numbers and data. For many readers, this treatment was confusing and disrupted the flow of the article, leaving them less satisfied with the <keyword id="23681501" type="General" weightage="20" keywordseo="automated-content" source="keywords">automated content</keyword>. <div type="Article" hostid="261" msid="114568958" title="ChatGPT parent OpenAI is reportedly planning to launch a new AI model soon but not everyone will get it" mstype="2" mssubtype="0"></div>Interestingly, readers did find parity between the two types of articles in terms of narrative flow and structure. However, the challenging word choice and awkward handling of data remained a stumbling block for AI-produced articles. Professor Neil Thurman, who headed the project, emphasised that refining the automated content process could help bridge the <keyword id="23068619" type="General" weightage="20" keywordseo="readability" source="keywords">readability</keyword> gap. This includes not only simplifying language but also finding ways to make data-driven content more intuitively understood by readers. This research highlights the nuanced role of human editors in AI content creation. As newsrooms consider AI’s potential, balancing efficiency with clarity remains key. “Our results indicate the importance not only of maintaining human involvement in the automated production of <keyword id="23681502" type="General" weightage="20" keywordseo="data-driven-news" source="keywords">data-driven news</keyword> content but of refining it,” said Thäsler-Kordonouri. While automation is here to stay, this study makes one thing clear: a human touch still plays a critical role in making news accessible and engaging. <div type="Article" hostid="261" msid="114424676" title="Meta AI will be able to remember your WhatsApp chat with a new feature, know all about it" mstype="2" mssubtype="0"></div>

Can AI really take over journalism? Study shows why readers still prefer human-written news articles over AI-crafted pieces

<ul class="summary-list"><li>Reddit stock surged 42% Wednesday to trade at a record high after reporting a strong earnings beat.</li><li>Reddit's revenue jumped 68% from a year ago, partly helped by licensing deals with OpenAI and Google.</li></ul>Reddit stock soared 42% to close at an all-time high of $116.03 per share on Wednesday afternoon after the company reported a strong earnings beat.A few months ago, investors appeared wary of Reddit's ability to compete on AI. Now, the platform's AI licensing deals are helping fuel its biggest quarterly revenue growth in two years and driving its stock to new records. On Tuesday, the company reported net income of $29.9 million, flying past expectations of an $8.8 million loss. It marks just the third profitable quarter for the company.Reddit's revenue jumped 68% from a year ago to $348.4 million. Part of that huge jump comes from its strong suite of <a target="_blank" href="https://www.businessinsider.com/google-train-ai-model-crazy-subreddit-posts-reddit-licensing-deal-2024-2">licensing deals</a> with OpenAI and Google, which are reflected in the $33.2 million of "other revenue" for the third quarter.That revenue category grew 547% year over year and now accounts for over 9% of the company's overall revenue, up from less than 1% last year.The company's licensing deals allow AI giants to train their models on the platform, which has become an increasingly competitive landscape. CEO Steve Huffman previously said Reddit is well-positioned amid an intense <a target="_blank" href="https://www.businessinsider.com/reddit-ceo-platform-arms-race-ai-training-steve-huffman-2024-10">"arms race" for AI training</a>.The company is also innovating in AI via language translation, which it's piloting in French, Huffman said during the earnings call. The move has helped drive more users to the site, he said."This quarter, machine translation drove four times more users than last quarter, and based on the success we've seen so far, we plan to expand machine translation to over 30 countries through 2025," Huffman added.The company added over 24 million daily users in the first three quarters of the year, already surging past the 15.6 million added in total last year, which has provided a huge boost to its ad business, too. Advertising revenue is forecast to surpass $1 billion for the year for the first time.Analysts say the company's ad and AI innovation are reasons for continued optimism on the stock."Revenue beat street expectations by 11%, dispelling fears around user growth sustainability, while displaying improved monetization via ad product innovation and AI-driven enhancements," Deutsche Bank analysts said in a Wednesday note."Looking forward, Reddit is expected to re-launch its Search tool in the coming quarters, which given the success of competing Gen AI-driven search tools, could drive another lever in monetization growth," they added, raising their price target on the stock from $85 to $115.Analysts are now expecting $113 million in profits next year, up from previous consensus estimates of just $17.5 million, according to FactSet data.

Reddit skyrockets 42% on strong earnings beat and AI-driven growth

Dear readers, As we approach yet another weekend, here are some key developments across various sectors. Nvidia has surpassed Apple to become the world’s largest company, driven by the AI boom. Meanwhile, the US Federal Reserve cut interest rates, by 25 basis points to 4.75%, the second such reduction in 2024. In the workplace, Gen Z’s approach to mental health got attention, with one employee taking a week off after a breakup. Additionally, Indian banks are expecting steady growth, despite challenges in unsecured lending. Read on for all the details! <h2>Top stories from the week </h2> Indian banks to have steady growth in earnings over next 3-4 years, fees from unsecured lending may dip, notes Jefferies report Jefferies forecasts steady earnings growth for Indian banks over the next 3–4 years, with a 13% annual loan growth rate. However, a decline in unsecured lending could reduce fee income. While net interest income is expected to grow at 12%, challenges such as rising defaults and a potential dip in rate cuts could affect profitability. Despite this, banks’ return on equity and assets remain promising. <a href="https://www.businessinsider.in/finance/news/indian-banks-to-have-steady-growth-in-earning-over-next-3-4-years-fees-from-unsecured-lending-may-dip-notes-jefferies-report/articleshow/115048179.cms" data-type="tilCustomLink" target="_blank">Read more</a> Nvidia becomes world’s largest company amid AI boom, surpasses Apple in the race Nvidia has surpassed Apple to become the world’s largest company by market capitalization, driven by the AI boom. The company’s strong performance is fueled by surging demand for its chips used in AI technologies. With a market cap hitting $3.43 trillion, Nvidia continues to dominate the AI hardware sector, powering data centres and AI research. The company’s revenue growth of 122% YoY further cements its leadership in the AI space. <a href="https://www.businessinsider.in/business/news/nvidia-becomes-worlds-largest-company-amid-ai-boom-surpasses-apple-in-the-race/articleshow/115003223.cms" data-type="tilCustomLink" target="_blank">Read more</a> ‘He had a breakup and took a one-week leave’: Manager shares about his Gen-Z employee, internet reacts A manager’s tweet about granting a Gen Z employee a week off for a breakup sparked widespread debate. While the manager expressed frustration over project delays, internet users defended the employee’s mental health needs, criticizing the manager’s lack of empathy. Some supported the manager’s view, pointing out generational differences in work culture. The incident went viral, furthering discussions about Gen Z’s unique workplace expectations. <a href="https://www.businessinsider.in/careers/news/he-had-a-breakup-and-took-a-one-week-leave-manager-shares-about-his-gen-z-employee-internet-reacts/articleshow/115041747.cms" data-type="tilCustomLink" target="_blank">Read more</a> US Fed cuts interest rates by 25 bps, Powell notes Trump’s victory to have no impact on policy decisions The US Federal Reserve has cut interest rates by 25 basis points to 4.75%, the second such reduction in 2024. Fed Chairman Jerome Powell emphasized the Fed’s independence despite Trump’s criticism and suggested that the economic outlook remains uncertain, though the Fed is focused on inflation targets. Trump’s policies may lead to higher inflation, adding complexity to the Fed’s efforts to stabilize prices. Experts anticipate that bond yields will stabilize, benefiting emerging markets like India. <a href="https://www.businessinsider.in/finance/news/us-fed-cuts-interest-rates-by-25-bps-powell-notes-trumps-victory-to-have-no-impact-on-policy-decisions/articleshow/115070690.cms" data-type="tilCustomLink" target="_blank">Read more</a> Big Tech’s winners and losers from Donald Trump’s win, according to the market After Donald Trump’s election victory, tech stocks surged, with companies like Tesla seeing significant gains. Tesla’s rise was fueled by Trump’s public support for CEO Elon Musk. Conversely, companies like Apple faced challenges due to fears over potential tariffs on China. While some, like Google, might benefit from lighter regulations, others like Meta could face political challenges. Overall, the election results reshaped market expectations for Big Tech’s future. <a href="https://www.businessinsider.in/tech/news/here-are-big-techs-winners-and-losers-from-donald-trumps-win-according-to-the-market/articleshow/115067798.cms" data-type="tilCustomLink" target="_blank">Read more</a> <h2>Top web stories</h2> <a href="https://www.businessinsider.in/entertainment/webstories/donald-trump-on-screen-a-look-at-his-iconic-cameos/slidelist/115045250.cms" data-type="tilCustomLink" target="_blank">Donald Trump on screen: A look at his iconic cameos</a> <a href="https://www.businessinsider.in/india/webstories/8-lifestyle-mistakes-contributing-to-health-problems-in-india/slidelist/115051791.cms" data-type="tilCustomLink" target="_blank">8 lifestyle mistakes contributing to health problems in India</a> <a href="https://www.businessinsider.in/travel/india/webstories/10-magical-indian-experiences-every-traveller-should-try/slidelist/115052527.cms" data-type="tilCustomLink" target="_blank">10 magical Indian experiences every traveller should try</a>

Weekend wrap: Nvidia’s AI-driven surge, Indian banks’ steady growth and more

India's services sector showed robust expansion in October, per the <keyword id="22267674" type="General" weightage="20" keywordseo="HSBC-India-Services-PMI" source="keywords">HSBC India Services PMI</keyword> (Purchasing Managers' Index), which rose to 58.5 last month, up from September's ten-month low of 57.7. October's figures managed to exceed even the long-run PMI average of 54.1, largely on the back of a strong sales pipeline and elevated demand. Employment, or job creation in this sector accelerated to its fastest growth rate in 26 months. Anticipating solid, sustained demand in the near term, firms added new employees at the most rapid pace in over 2 years. October also saw <keyword id="23834175" type="General" weightage="20" keywordseo="input-costs-rise" source="keywords">input costs rise</keyword> at their fastest pace in 3 months, indicating renewed demand and economic activity in the country. The ISM Services PMI, an indicator of the economic health of the US, also exceeded expectations, reaching 56.0 compared to the forecasted 53.8, suggesting strong growth within the services sector. "During October, the Indian services sector experienced strong expansions in output and consumer demand, as well as job creation, which achieved a 26-month high," said Pranjul Bhandari, Chief India Economist at HSBC. The sector saw increased business activity across multiple fronts, with export sales showing significant growth and companies reporting stronger demand from international markets including Africa, Asia, the Americas, the Middle East, and the UK. However, industry experts remain cautiously optimistic about the sector's prospects. Suman Chowdhury, Chief Economist at Acuité Ratings &amp; Research, noted that while the October recovery is promising, several factors warrant careful monitoring. “The recovery in the PMI indices in October 2024 is promising for the second half of the fiscal after the dip in several high-frequency indicators in September 2024. Industrial and service activity has expectedly received a boost from the anticipated spike in consumption demand in Q3 FY25, driven by the festivities and the marriage season," she said. Chowdhury added that it will be crucial to monitor the sustainability of these PMI indices at these elevated levels, given the reported weakness in urban demand in Q2 as flagged by FMCG companies. She also noted that potential increases in wholesale and core retail inflation, combined with higher input costs and wage pressures, could delay expected interest rate cuts. RBI governor Shaktikanta Das also noted that inflation and CPI figures for October might be elevated, pushing ahead any chances of interest rate cuts in the near future. Acuité Ratings &amp; Research maintains its GDP growth forecast at 7.0% for FY25 while acknowledging the multiple downside risks that will require close observation in the coming months.

India's Services Index jumps to 58.5 in October as employment grows the fastest in 26 months

AI allows marketers to make data-driven decisions faster, says NICE CMO Einat Weiss

In an era where customer experience is a primary business differentiator, the role of service hubs has evolved from merely answering calls to becoming innovation centers. With the infusion of advanced technologies like <keyword id="107950" type="General" weightage="20" keywordseo="artificial-intelligence" source="Orion">Artificial Intelligence</keyword> (<keyword id="6355999" type="General" weightage="20" keywordseo="AI" source="Orion">AI</keyword>) and Generative AI (Gen-AI), the service hub industry is now undergoing a transformation that promises to redefine customer interactions, according to experts. “The nature of the industry will change. I think even calling it <keyword id="19945906" type="General" weightage="20" keywordseo="customer-service" source="keywords">customer service</keyword> or service industry may be a very different outlook 5 years from now,” said Sameer Bapat, SVP and COO of Cognizant IOA, during a panel discussion on “Revolutionsing Customer Experience Innovating Service Hubs Through Technology,” hosted by Business Insider India. Leaders in the industry believe that India is entering the golden age of customer service, one powered by data-driven insights, AI-driven empathy, and evolving human-machine collaboration. “The net amount of venture capital and private equity capital that you’re going to see in the customer service industry going forward is going to 5-10x of what it has been in the last 5 years,” predicted panelist Vijay Narsapur, SVP and Business Head of Infosys BPM. <div type="Youtube" id="E23CeECUh9A" title="Revolutionizing Customer Experience: Innovating Service Hubs Through Technology" thumbUrl="https://i.ytimg.com/vi/E23CeECUh9A/mqdefault.jpg"><url><![CDATA[https://www.youtube.com/watch?v=E23CeECUh9A]]></url></div> <h2>The evolution of service hubs: More than customer service</h2>No longer just centers for addressing customer complaints or technical issues, today’s service hubs are integrating innovative technologies to become the nerve center of business operations. According to Sanjay Kukreja, Global Technology Head at Eclerx, tools like data engineering and cloud computing have shifted customer service into real-time interactions, allowing businesses to assist customers faster and more efficiently than ever before. For Narsapur, service hubs are now the lifeblood of the business process management (BPM) industry. End customers have become increasingly comfortable interacting with AI and automated systems. However, they still crave human connection, especially when complex or emotionally charged issues arise. Narsapur points out that this blending of technology and human touch is crucial for refining the customer journey. As businesses scale, service hubs are expected to balance these elements more tightly to deliver both efficiency and empathy. <h2>AI and Gen-AI: Disruptors or Enhancers?</h2>Arguably, the most significant driver of change in the service hub industry has been the integration of AI and Gen-AI. Bapat explains that these technologies have transformed how service hubs operate. Automation tools have led to productivity gains ranging between 20% to 60%, primarily by streamlining mundane tasks, improving scalability, and delivering more personalized customer interactions. This isn’t just an incremental improvement—it’s a deep, domain-led transformation of how companies interact with their customers. But, as Abhinandan Jain, Chief Growth Officer at Startek, notes, AI doesn’t just enhance efficiency—it also amplifies empathy. Service hubs are learning how to use AI as an "empathy amplifier," where AI-driven systems handle routine queries, and human agents step in for more complex, emotionally charged interactions. This helps agents focus on delivering the high-touch experiences customers expect when they escalate an issue to a real person. While there has been some anxiety surrounding AI replacing jobs, the experts argue that this technology will instead create more high-value roles. ““There is going to be an increase of anywhere between 2x to 5x in the number of jobs that are going to be created in this particular industry,” said Narsapur. For example, there will be an increasing demand for professionals skilled in data science, machine learning, and algorithm management to maintain and improve AI systems. According to a <a href="https://www.mckinsey.com/mgi/our-research/generative-ai-and-the-future-of-work-in-america">McKinsey</a> report, AI will automate 25-30% of jobs in customer service, but the technology will also create new roles in AI supervision, data analysis, and customer experience management. <h2>Data-driven insights and the role of <keyword id="23232621" type="General" weightage="20" keywordseo="CRM-tools" source="keywords">CRM tools</keyword></h2>One of the most promising developments in the service hub sector is the increasing reliance on data to drive customer interactions. Jain explains that service hubs are now equipped with sophisticated Customer Relationship Management (CRM) tools that can mine both structured and unstructured data, enabling companies to gain a holistic view of customer behavior. This level of insight allows businesses to not only address customer queries more efficiently but also predict future needs, making the customer journey more proactive than reactive. These CRM platforms are evolving, too. Narsapur notes that many service hubs, particularly in industries like banking and telecom, now use platforms that integrate various aspects of customer interaction, from onboarding to relationship management. These platforms provide a unified view of customer interactions, allowing agents to access the information they need quickly, which ultimately drives faster resolution times and higher customer satisfaction. A <a href="https://www.gartner.com/en/newsroom/press-releases/2021-01-12-gartner-predicts-80--of-customer-service-organization">Gartner</a> study revealed that by 2025, 80% of customer service interactions will be handled by AI and CRM systems, up from 52% in 2020. <h2>The economic impact of AI on service hubs</h2>The rise of AI and Gen-AI is also fueling an economic boom in the service hub sector. Jain predicts that the influx of venture capital and private equity in AI research for customer service hubs will increase five- to ten-fold in the coming years. This investment is primarily driven by the need for businesses to remain competitive in an increasingly tech-driven market. The economic growth potential is massive, especially in regions like India, where the talent pool for AI and data science is unmatched. Kukreja echoes this sentiment, noting that India’s service hubs are well-positioned to lead this transformation due to their depth of talent in areas such as data engineering, mathematics, and AI development. This gives Indian service hubs a competitive edge as companies look to scale their customer service operations with tech-driven solutions. Global spending on Gen-AI is expected to reach $26 billion by 2027, with Japan and India set to become the most rapidly expanding markets in the forthcoming years, according to <a href="https://www.idc.com/getdoc.jsp?containerId=prAP52048824">IDC</a>. <h2>What lies ahead for service hubs?</h2>As we look to the future, the role of service hubs will likely expand even further. Narsapur warns that while platforms and AI will drive efficiency, businesses should not rely solely on technology. Competitive advantage will come from the integration of human expertise, technology, and industry-specific solutions. Different sectors, such as banking, telecom, and retail, each have unique needs that service hubs must adapt to in order to provide effective, personalized customer experiences. AI will play a central role in this transformation. But as Jain points out, it won’t replace human agents entirely. Instead, it will coexist with them, moving people up the value chain to focus on higher-value tasks. AI will handle the routine, while humans will step in where emotional intelligence and complex problem-solving are required. In the end, the future of service hubs is not just about technology; it’s about blending tech and humanity in a way that elevates customer experiences to new heights. We are at the dawn of a new era for customer service hubs. The infusion of AI and Gen-AI, along with data-driven insights and sophisticated CRM tools, is transforming the industry from the ground up. Far from being a threat to jobs, AI will create new opportunities, leading to a more dynamic, efficient, and empathetic customer experience. With significant economic growth on the horizon, particularly in regions like India, the service hub industry is set to play a pivotal role in the future of business. The golden age of customer service is here, and the best is yet to come. This article is part of a four-part webinar series in partnership with nasscom. These monthly webinars aim to delve deep and offer insights into the evolving BPM landscape. You can watch the full video of the second session <a href="https://www.youtube.com/watch?v=E23CeECUh9A">here</a>. Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on insiderstudios@businessinsider.in

Customer service hubs: Entering the golden age with Gen-AI and tech-driven solutions

<ul class="summary-list"><li>Nuclear-power stocks fell after regulators voted against a deal between Amazon and Talen Energy.</li><li>The deal would permit a Talen nuclear plant to provide an Amazon data center with extra power.</li></ul>Nuclear-power stocks slumped on Monday after US regulators barred a plant from supplying extra power to an <a target="_blank" href="https://markets.businessinsider.com/stocks/amzn-stock">Amazon</a> data center.The Federal Energy Regulatory Commission rejected the deal between Amazon and <a target="_blank" href="https://markets.businessinsider.com/stocks/tln-stock">Talen Energy</a> late last week. According to FERC Commissioner Mark Christie, approving the proposal would <a target="_blank" href="https://www.ferc.gov/news-events/news/commissioner-christies-concurrence-pjms-susquehanna-co-location-proposal-er24-2172">spark consequences for grid reliability and consumer costs</a>.Talen dropped as much as 8.6% on Monday, unleashing a broader downturn in the nuclear power sector. <a target="_blank" href="https://markets.businessinsider.com/stocks/vst-stock">Vistra</a> slid 6.7% at intraday lows, while <a target="_blank" href="https://markets.businessinsider.com/stocks/ceg-stock">Constellation Energy</a> tanked 13%.These firms have gained sharply as AI data centers have driven US <a target="_blank" href="https://markets.businessinsider.com/news/commodities/ai-power-grid-demand-utility-bill-outlook-electricity-ev-2024-7">power demand to new heights</a>. In recent months, tech companies have come to embrace nuclear power to run these centers, fueling underlying equities.Both Vistra and Constellation are among the top S&amp;P 500 performers this year. In a similar fashion to Talen, Constellation reached a 20-year deal with <a target="_blank" href="https://markets.businessinsider.com/stocks/msft-stock">Microsoft</a> to power its data center inBut the FERC's decision sets a precedent that could challenge nuclear data center deals."FERC's decision will have a chilling effect on economic development in states such as Pennsylvania, Ohio, and New Jersey," Talen <a target="_blank" href="https://ir.talenenergy.com/news-releases/news-release-details/talen-energy-statement-ferc-order-rejecting-susquehanna-isa">said in a statement</a>.According to <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-11-04/us-power-stocks-slump-after-regulator-rejects-nuclear-agreement">Bloomberg</a>, the firm was already paid $650 million in March by Amazon Web Services for a data center campus next to the Pennsylvania plant at issue. AWS also signed a long-term deal to purchase power from the plant.Other nuclear equities also suffered on Monday, with the Sam Altman-backed firm <a target="_blank" href="https://markets.businessinsider.com/stocks/oklo-stock">Oklo</a> and <a target="_blank" href="https://markets.businessinsider.com/stocks/nne-stock">Nano Nuclear Energy</a> both falling by double-digits.

Nuclear-power stocks slide after regulator rejects plan to power Amazon data center

<ul class="summary-list"><li>US stocks started November with gains even as the latest jobs came in much weaker than estimates. </li><li>Job gains were the lowest since December 2020, impacted by hurricanes and the Boeing strike.</li></ul>US stocks jumped on Friday after the October jobs report missed economist estimates, opening the door for more rate cuts from the Federal Reserve.Major indexes rose, with the Dow Jones Industrial Average rising nearly 300 points. The Nasdaq Composite ended almost 1% higher. The <a target="_blank" class="" href="https://www.businessinsider.com/october-jobs-report-unemployment-rate-nonfarm-payroll-growth-federal-reserve-2024-11">US economy added 12,000 jobs in October,</a> well short of economist estimates of 106,000, representing the lowest job gains since December 2020.The jobs report's weakness was driven by disruptions from hurricanes Helene and Milton, which battered Florida and North Carolina last month, as well as an ongoing strike of about 30,000 Boeing workers.The unemployment rate remained unchanged at 4.1%. The weak jobs report reinforced the case for more interest rate cuts from the Fed, though it puts the Fed in a tight spot given the noise surrounding the report."Given the storm-related distortion, the Fed is in a tight spot as they adhere to data-dependency," LPL chief economist Jeffrey Roach said. "The Fed will likely cut rates in the remaining two meetings as economic conditions weakened."Here's where US indexes stood at the 4:00 p.m. closing bell on Friday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,728.88, up 0.41% </li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,051.80, up 0.69% (+288.34 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,239.92, up 0.80%</li></ul>Investors were also digesting earnings results from mega-cap tech giants Amazon and Apple. Both companies beat analyst estimates, with <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/amazon-stock-price-q3-earnings-beat-rally-tech-aws-cloud-2024-11">Amazon stock surging about 6%.</a>Apple stock fell after earnings, however, as <a target="_blank" class="" href="https://www.businessinsider.com/apple-stock-earnings-report-call-live-updates-2024-10">weakness in its China business</a> weighed on sentiment, dropping more than 1% in Friday's session. Here's what else happened today:<ul><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/trump-trade-djt-bitcoin-harris-election-odds-betting-kalshi-polymarket-2024-11">The Trump trade has wavered as Kamala Harris' odds of winning the election rose in betting markets.</a></li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/small-stocks-versus-large-caps-trump-tariffs-citi-2024-11">Why investors should rotate into smaller stocks</a>, according to Citi. </li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/carvana-stock-price-soars-7000-percent-after-2022-bankruptcy-risk-2024-10">Carvana stock has soared more than 7,000% since it narrowly avoided bankruptcy in 2022.</a></li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">West Texas Intermediate</a> crude oil rose 0.33% to $69.49 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a>, the international benchmark, was higher by 0.37% to $73.08 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> dropped 0.20% to $2,743.80 an ounce.</li><li>The 10-year Treasury yield surged nine basis points to 4.382%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> declined 1.53% to $69,132.</li></ul>

Stock market today: Indexes jump as Amazon lifts tech and jobs data boosts rate-cut views

Fake images churned out by <keyword id="107950" type="General" weightage="20" keywordseo="artificial-intelligence" source="Orion">artificial intelligence</keyword> (<keyword id="6355999" type="General" weightage="100" keywordseo="AI" source="Orion">AI</keyword>) are now spreading at an alarming rate, nearly matching the prevalence of those altered by traditional methods like Photoshop, according to research conducted by Google and several <keyword id="20937276" type="General" weightage="20" keywordseo="fact-checking" source="keywords">fact-checking</keyword> organisations. The findings shed light on the rapid adoption of AI technology by those propagating <keyword id="19933162" type="General" weightage="20" keywordseo="misinformation" source="keywords">misinformation</keyword>. In a recently released paper that is yet to undergo peer review, researchers delved into the trends of misinformation, <a href="https://www.nbcnews.com/tech/tech-news/ai-image-misinformation-surged-google-research-finds-rcna154333">NBC News</a> reports. They analysed around 1,36,000 fact-checks spanning from 1995 to November 2023, with a significant surge in publications occurring after 2016. Their analysis revealed a minimal presence of AI-generated image misinformation until early 2023 — right around the time when fake photos of <a href="https://www.businessinsider.in/tech/news/a-viral-image-of-pope-francis-dressed-in-a-stylish-white-puffer-coat-that-fooled-social-media-users-was-actually-generated-by-ai/articleshow/99038240.cms">Pope Francis in a puffer coat went viral</a>. “The sudden prominence of AI-generated content in fact-checked misinformation claims suggests a rapidly changing landscape,” the researchers wrote. ALSO SEE: <a href="https://www.businessinsider.in/science/research/news/a-small-number-of-superspreaders-are-propagating-most-of-the-misinformation-on-twitter-study-finds/articleshow/110500820.cms" data-type="tilCustomLink" target="_blank">A small number of ‘superspreaders’ are propagating most of the misinformation on Twitter</a> However, they caution that AI constitutes just one avenue through which images are weaponised for misleading purposes. The most common method remains the misrepresentation of real images through contextual manipulation. “While <keyword id="17285481" type="General" weightage="20" keywordseo="AI-generated-images" source="Orion">AI-generated images</keyword> did not cause content manipulations to overtake context manipulations, our data collection ended in late 2023 and this may have changed since,” the researchers note. “Regardless, generative-AI images are now a sizable fraction of all misinformation-associated images.” The study also highlighted the growing challenge of identifying <keyword id="19151102" type="General" weightage="20" keywordseo="AI-driven-misinformation" source="Orion">AI-driven misinformation</keyword> as technology progresses. Typical indicators of AI-generated images, such as distorted features or nonsensical text, are gradually becoming less prevalent as these tools become more sophisticated. And although AI models aren't trained to replicate screenshots and memes, there's a possibility they'll swiftly adapt to generate such content as new iterations of advanced language models roll out. As AI technology continues to evolve and intertwine with the digital landscape, it becomes imperative for the public to sharpen their critical thinking skills and scrutinise the origins of the information they consume. After all, it is only by staying informed and cautious that we’ll be able to safeguard the integrity of the information that shapes our perceptions and decisions.

Fake AI images now contributing to misinformation spread nearly as much as traditionally altered media: Research

<ul class="summary-list"><li>Half of <keyword id="23335388" type="General" weightage="20" keywordseo="US-renters" source="keywords">US renters</keyword> spend over 30% of their income on housing, <keyword id="21621325" type="General" weightage="20" keywordseo="Census-data" source="keywords">Census data</keyword> shows.</li><li>Skyrocketing home prices and rents, driven by supply shortages and high interest rates, are to blame.</li></ul>For decades, financial advisors and the federal government have recommended that Americans spend no more than 30% of their gross income on housing. But as home prices and rents have skyrocketed in recent years, that so-called <keyword id="23335390" type="General" weightage="20" keywordseo="30-rule" source="keywords">30% rule</keyword> is increasingly challenging to follow. And for a whopping half of US renters, it's become impossible. Almost half — 49.7% — of American renter households spent more than 30% of their income on <keyword id="21020775" type="General" weightage="100" keywordseo="housing-costs" source="keywords">housing costs</keyword>, according to data released by the <keyword id="19899587" type="General" weightage="20" keywordseo="US-Census-Bureau" source="keywords" meta.keywordsubtype="org" meta.entityname="US Census Bureau" meta.hostid="261" meta.entityid="US Census Bureau">US Census Bureau</keyword> from its <a target="_blank" class="" href="https://www.census.gov/newsroom/press-releases/2024/renter-households-cost-burdened-race.html">2023 American Community Survey</a>. That's unchanged from 2022, when the median ratio of income-to-housing costs for renters was also 31%. Among racial and ethnic groups, Black renters were the most frequently <keyword id="23335389" type="General" weightage="20" keywordseo="cost-burdened" source="keywords">cost-burdened</keyword>, with 56% spending more than 30% of their income on rent, according to the census data. Hispanic renters were the second-most affected, with 53% cost-burdened, while 47% of white renters were cost-burdened. Renters are currently struggling more than homeowners. Rents rose <a target="_blank" class="" href="https://www.census.gov/library/stories/2024/09/acs-rent-burden.html">faster than home prices</a> for the first time in a decade, the Census found. Rents rose by 3.8% between 2022 and 2023, while home prices rose by 1.8%. And a greater share of tenants are <a target="_blank" class="" href="https://nlihc.org/gap/about">low-income or very low-income</a> and have significantly less wealth than homeowners. But <a href="https://www.businessinsider.com/housing-crisis-homeowners-struggling-mortgage-interest-rates-insurance-home-equity-2024-6" target="_blank">homeowners are also struggling</a>. Mortgage interest rates recently hit a two-decade high, and rising insurance premiums, growing home-repair costs, and property taxes add to the burden. Last year, first-time <a href="https://www.jpmorgan.com/insights/real-estate/housing-market/the-american-homeowners-dream-vs-recent-reality#:~:text=become%20a%20reality.-,In%20the%20third%20quarter%20of%202023%2C%20the%20first%2Dtime%20homebuyer,the%20problem%20has%20become%20exacerbated." target="_blank">homeownership affordability</a> hit its lowest level since the 1980s. The number of cost-burdened homeowners — those who spent more than 30% of their income on housing and utilities — rose by about three million people between 2019 and 2022, according to <a target="_blank" class="" href="https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_The_State_of_the_Nations_Housing_2024.pdf">a recent report</a> from the <keyword id="19898366" type="General" weightage="20" keywordseo="harvard" source="keywords">Harvard</keyword> Joint Center for Housing Studies on the state of US housing. Most of this increase was among those who make less than $30,000 a year. A full 30% of Black and 28% of Hispanic homeowners are cost-burdened, compared to 21% of white homeowners, the Harvard report found. While the Federal Reserve finally announced its first <a href="https://www.businessinsider.com/federal-reserve-interest-rate-cuts-mortgage-investment-credit-savings-2024-9" target="_blank">interest-rate cut</a> in four years, the move probably <a href="https://www.businessinsider.com/buying-home-not-easier-interest-rate-cuts-prices-rent-crisis-2024-8" target="_blank">won't bring housing costs down</a> by much. The US is suffering from a severe shortage of homes — the only way to solve it is to build many more units of housing. And that takes time. Are you spending more than 30% of your income on housing costs? Reach out to this reporter to share your story at erelman@businessinsider.com. Correction: September 25, 2024 — An earlier version of this story misstated a recent move by the Federal Reserve. It announced an interest-rate cut, not a hike.

Half of renters live somewhere they can't afford

<ul class="summary-list"><li>Electricity and labor headwinds slow Amazon's data center buildout.</li><li>The company's predicament highlights challenges faced by the broader cloud industry.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/amazon-big-tech-cash-king-wall-street-wants-a-piece-2024-10">Amazon</a> is spending heavily on <a target="_blank" class="" href="https://www.businessinsider.com/ai-data-energy-centers-water-energy-land-2023-10">data centers</a> to support booming <a target="_blank" class="" href="https://www.businessinsider.com/amazon-ai-sales-machine-aws-google-microsoft-pressure-pay-speed-2024-9">AI</a> workloads, putting it on pace to build 240 new facilities by 2040, according to one estimate.These plans are increasingly running into physical constraints that are slowing the buildout, according to an internal document, people familiar with the matter, and emails obtained through a public-records request."Across the AMER region, we are experiencing headwinds in power, zoning and permitting, water, and workforce/labor that are providing challenges to our long-term capacity growth," the internal document stated, referring to the Americas market, Amazon's largest.As the biggest cloud provider, Amazon's predicament highlights broader <a target="_blank" href="https://www.businessinsider.com/ai-data-energy-centers-water-energy-land-2023-10">problems</a> facing the tech industry as generative <a target="_blank" class="" href="https://www.businessinsider.com/amazon-ai-sales-machine-aws-google-microsoft-pressure-pay-speed-2024-9">AI</a> upends the status quo. While more companies want access to cloud computing for AI initiatives, there's only so much power, water, and labor available to support these services.It's not just an Amazon problem. Sequoia Capital general partner David Cahn recently predicted data center delays across the sector."The need for more power and a better functioning grid was clear before AI," he wrote in a blog post. "Now, it is becoming urgent."<h2 id="4e19455f-0a20-458d-a775-e305cc9aed23">Energy demand is growing</h2>It may be natural for a company like Amazon, one of the largest and fastest-growing data center operators, to face these challenges when it is expanding at breakneck speed.Marc Wulfraat, president of consulting firm MWPVL, told BI that Amazon is probably rolling out even more than 240 data centers in coming years. That's because the cloud giant also leases space in buildings shared with other companies. Collectively, this building spree amounts to almost 75 million gross square feet of space, according to his estimates. That's the equivalent of roughly 27 Empire State Buildings.In an email to BI, Amazon's spokesperson said customers' energy demand "continues to grow," and the company is continuously working on ways to "efficiently build and operate data centers" to meet their needs."Nobody knows better than we do that building data centers is exceptionally complex, and by embracing that challenge, we've become really good at it over the years," the spokesperson added. "We're confident we can continue to build at a rapid pace to provide the cloud capacity our customers will need."<h2 id="3ffef594-735b-4945-a7b0-176832400209">Doubts about electricity supply</h2>Power might be the most scarce resource. US data center electricity consumption is forecast to triple by 2030, according to <a target="_blank" rel=" nofollow" href="https://www.linkedin.com/posts/bcg-on-energy_the-impact-of-genai-in-electricity-activity-7112787574032674816-uDEX/">Boston Consulting Group</a>, much of it to power generative AI. Bernstein Research recently <a target="_blank" href="https://www.businessinsider.com/ai-data-centers-us-power-grid-gpu-nvidia-cerebras-amazon-2024-7">estimated</a> that electricity demand for AI data centers could exceed supply in just two years without action.At Amazon, electricity shortages have been a major concern and a topic of almost every leadership meeting in recent years, according to the people familiar with the matter.Amazon is experiencing power-supply issues in Oregon, Ohio, and Northern Virginia, according to the internal document from May. For example, it noted that PacifiCorp, Amazon's Portland-based utility partner, has electricity shortfalls and generation constraints forecasted until 2030.This is leaving Amazon with unpredictable energy supply in some markets and a possible loss of "bridging" solutions that help maintain power during the early stages of construction."With the utility power headwind, we are seeing continued risk driven by transmission constraints as well as unexpected changes to committed/available generation, gaps in promised vs delivered incremental power, and potential loss of bridging power as utility infrastructure projects are delayed," the document explained.<h2 id="e085ef5b-5190-4456-935c-6cab05b23795">'Zombie' data centers</h2>In some markets, so-called "zombie" data centers exist. That's a term used by some Amazon employees who spoke with Business Insider about the electricity-supply problems.These facilities are also described internally as "operationally blocked" because the data centers can sometimes sit idle as they don't have access to enough power to run them, according to the people familiar with the matter.Amazon's spokesperson told BI the company is not familiar with these terms, but said there are a "very small number of cases" where the company decides to complete data center construction before building power is available. "These situations are all managed as part of the standard course of business," the spokesperson added.<div type="image" title="AWS CEO Matt Garman" height="4320" width="6751" msid="114502575" hostid="261" sizebytes="742626"></div>Amazon Web Services CEO Matt Garman recently spoke publicly about challenges related to AI data center buildouts, including accessing enough GPUs and power.During a podcast interview in August, he said customer demand is "mind boggling," which is requiring "a lot of investment.""We're probably going to be tight for the next little bit of time," Garman added.<h2 id="d47a3f17-b6c1-4c0c-91d9-5918b3a4761f">'Mosquitoes to light'</h2>The company is on the hunt for more energy. It's conducting "power studies" with utility partners to evaluate additional transmission capacity, which could result in more power allocation, according to the internal document.The company is also working on ways to reclaim stranded and retired power, the document said, likely in reference to the practice of redeveloping old power plants that have become inactive for economic or sustainability reasons.Amazon has been more actively seeking partnership opportunities with third-party colocation data center providers, one of the people said. At these facilities, Amazon would simply lease space, transferring the need to secure power to the data centers' owners.Additionally, Amazon has started looking beyond well-established data center markets, such as Northern Virginia and Arizona, and is expanding into newer regions like Indiana. Crowded data center regions are running out of power and other resources, making newer locations <a target="_blank" class="" href="https://www.businessinsider.com/ai-data-centers-energy-cloud-microsoft-chatpgt-amazon-google-2023-7">more appealing</a>.The company is also more aggressively pursuing alternative energy sources. Last week, Amazon <a target="_blank" href="https://www.businessinsider.com/amazon-invests-in-nuclear-for-aws-following-google-and-microsoft-2024-10">unveiled</a> a plan to lead a $500 million funding round to develop small modular nuclear reactors, following an earlier announcement to purchase a nuclear power plant in rural Pennsylvania."It's almost like mosquitoes to light — we are attracted to power," one of the people familiar told BI.Amazon's spokesperson said the company's data center expansion strategy considers several factors, including system resiliency and latency, the availability of renewable energy, and the local government's long-term commitment. Amazon is also constantly seeking ways to make its data centers more energy efficient by using carbon-free resources, in-house processors, and natural air cooling systems, the spokesperson said.<h2 id="82c2fbef-48d1-4af8-8635-cf74ee12697d">Higher costs in Silicon Valley</h2>In some cases, Amazon is paying higher prices to get its new data centers up and running.One example is an Amazon facility in Santa Clara, California, in the heart of Silicon Valley. For the last 2 years, Amazon has held talks with the city of Santa Clara to secure power for a new data center located near Levi's Stadium, the home of the San Francisco 49ers, according to a <a target="_blank" href="https://santaclara.granicus.com/player/clip/2140?view_id=1&amp;meta_id=190407&amp;redirect=true">city council meeting</a> held in July.Amazon is in talks for a 15-year, 20-megawatt proposal for this facility under the condition that the company pays the full cost of the energy, whether it uses the power or not, Manuel Pineda, the chief electric utility officer of the City of Santa Clara, said during the meeting. Amazon will have to pay up to 50% higher rates than normal and will be entitled to additional "financial assurances" to cover any contractual risks, Pineda added.As part of the deal, Amazon also plans to use the 20-megawatt power agreement for a second building on-site, which currently has no electric capacity, according to Pineda.Amazon's spokesperson told BI that this arrangement has not been finalized, and the project is progressing as expected.<div type="image" title="AWS Santa Clara data center planning slide" height="586" width="1056" msid="114502585" hostid="261" sizebytes="101810"></div><h2 id="5e7acce5-2a9c-4e0c-873a-74b683e1b0a3">Amazon escalates Santa Clara delays</h2>Amazon appears to be dealing with further delays in Santa Clara. On August 28, an AWS employee wrote to a city official about another facility, a former Owens Corning factory the company purchased in 2023. The email discussed delays at the site and noted that the problems are raising concerns internally at Amazon."Delays as significant as this unfortunately impact our ability to serve our customers which has resulted in escalation," said the email, which was obtained by BI through a public-records request.The next day, another Amazon employee wrote to a Santa Clara city official. "This is time sensitive," the staffer said. "AWS executives are highly concerned about the constant push in the results."<h2 id="a5ae3cc3-4484-42c7-a232-b1135b2bd3e0">'Straining' water infrastructure</h2>Another problem is water supply. A growing number of data centers rely on water instead of air to cool the servers and other equipment inside the facilities. This liquid-cooling technology <a target="_blank" href="https://www.businessinsider.com/arizona-running-out-of-water-data-centers-blame-microsoft-google-2023-6">requires a lot of water</a>.Amazon is "straining local jurisdictions' existing infrastructure" for water in some regions and is "dependent on long-term infrastructure upgrades or building our own solutions" to mitigate the issue, the internal document stated.There are zoning and permitting problems, too. Some local jurisdictions are not supporting the re-zoning of industrial property for data center use and have stricter environmental regulations, the document explained. Amazon is "working proactively" with local municipalities to solve these challenges, as they can impact its "future capacity options," the document added.Amazon is "one of the world's most water efficient operators" and its data centers are much more water efficient than the industry average, the company's spokesperson told BI.<h2 id="74b62895-25bd-411f-8890-035613989c55">'Lack of available skilled labor'</h2>An even bigger problem may be a lack of skilled electricians to build and run these data centers, according to the internal document and people directly involved in these Amazon projects.Electrical work is a major part of data center construction. But Amazon has struggled to find enough people to do the jobs, especially in rural areas, these people said. Amazon has talked to local colleges, general contractors, and labor unions in certain markets to increase the supply of electricians, one of the people said.<div type="image" title="amazon data center oregon" height="3072" width="4608" msid="114502582" hostid="261" sizebytes="883326"></div>A <a target="_blank" href="https://www.cnbc.com/2024/07/27/americas-demand-skilled-electricians-boom.html">shortage of skilled electricians</a> is a growing industry problem. According to last year's <a target="_blank" href="https://datacenter.uptimeinstitute.com/rs/711-RIA-145/images/2023StaffingSurvey.Report.12152023.pdf">Uptime Institute Data Center Staffing Survey</a>, more than half of respondents said they struggled to fill open positions due to demand outstripping supply."For workforce/labor, we are seeing a lack of available skilled labor," Amazon's internal document stated. "Which requires us to prioritize where we allocate these resources, and we are becoming increasingly reliant on more expensive travelling [primarily] electricians."Amazon's spokesperson shared <a target="_blank" href="https://www.aboutamazon.com/news/workplace/our-upskilling-2025-programs">blog posts</a> detailing its <a target="_blank" href="https://aws.amazon.com/government-education/workforce-development/aws-fiber-optic-fusion-splicing/">training programs</a> in this space, adding, "AWS has established a number of workforce development programs and collaborations with education institutions to help ensure a strong pipeline of talent."Do you work at Amazon? Got a tip?Contact the reporter, Eugene Kim, via the encrypted-messaging apps Signal or Telegram (<a target="_blank" rel="noopener noreferrer nofollow" class="c-link">+1-650-942-3061</a>) or email (<a target="_blank" href="mailto:ekim@businessinsider.com">ekim@businessinsider.com</a>). Reach out using a nonwork device. Check out Business Insider's <a target="_blank" rel="" href="https://www.businessinsider.com/insider-guide-to-securely-sharing-whistleblower-information-about-powerful-institutions-2021-10">source guide</a> for other tips on sharing information securely.

Amazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortages 

<ul class="summary-list"><li>"Arcane," a television adaptation of Riot Games' "League of Legends," is back on Netflix.</li><li>The series was created by Christopher Linke and Alexander Yee, two Riot vets with no TV experience.</li></ul>In 2010, "Arcane" co-creator Christian Linke needed to make a change.The German-born musician had spent years playing bass in the German rock band Panik and working as a songwriter and producer. But by 2010, he was starting to have doubts about the music business — and in turn, the longevity of his career — as he observed musicians using personal computers to produce their own tracks.So he left music, packed up his life, and moved to Los Angeles. When he arrived, he landed a customer support job that he had found on Craigslist. Though he didn't know it at the time, that job set him on a career path that would lead to his first Emmy award 12 years later.The gig was at Riot Games, a young video game company founded in 2006 that had launched its debut title "League of Legends" the year before. These days, "League" is one of the most-played PC games in the world, with Riot announcing it had hit 180 million monthly active players in 2021. But back then, Riot was small, and "League" was still a fresh title. And luckily for Linke, an early "League of Legends" player, it had thousands of unanswered German-language customer support tickets languishing in the queue."Somehow they hired me," Linke told Business Insider. "I think because, of all the people that interviewed, I was the only one that actually spoke German."Fourteen years later, the now-creative director has graduated from answering tickets to running one of TV's most successful video game adaptations. "Arcane," which Linke created with fellow long-term Rioter Alexander Yee, premiered on Netflix in November 2021. By the time its first season finished airing, it had <a target="_blank" href="https://www.businessinsider.com/netflixs-league-of-legends-series-arcane-surges-in-popularity-2021-11">racked up millions of viewing hours</a> and <a target="_blank" href="https://www.netflix.com/tudum/top10/tv?week=2021-11-21">hit No. 1</a> on Netflix's global top 10 English-language television list.It wasn't much of a surprise when Netflix announced it had renewed "Arcane" for a second season the minute season one wrapped. Aside from winning <a target="_blank" href="https://www.emmys.com/shows/arcane">four Emmy Awards</a>, including outstanding animated program, it had <a target="_blank" href="https://www.rottentomatoes.com/tv/arcane_league_of_legends/s01">near-universal critical acclaim</a>. For good reason: its focused, character-driven story and distinct visual identity, courtesy of French animation studio Fortiche, make it accessible and riveting television for newcomers and longtime "League" fans alike.But before the show was a hit, it was a passion project that Linke and Yee started working on in 2015 — one borne out of their tenures at Riot and the relative creative freedom they were afforded during the company's ascension."When we started the project, there was no adaptation that had ever succeeded," Linke told BI of his and Yee's plan to create a series based on the game. "But it didn't really matter because the desire was always very clear. It was like, 'We want this to exist.'"<div type="image" title="jinx in season two of arcane, her hair colored blue and purple and with colorful graffiti behind her. she has on a purple hood with white markings reminiscent of teeth" height="2149" width="2865" msid="115116333" hostid="261" sizebytes="105082"></div><h2 id="3016a99c-a885-4a65-a92c-7c1a760500e3">Linke has worn a lot of hats at Riot and grew his career with the company</h2>When Linke started at Riot in 2010, his remit quickly expanded past customer support. After a stint in the billing department, he eventually moved over to data analysis, working cross-functionally across different teams.But in 2011, he noticed an opportunity for the company to invest more in music projects — think <a target="_blank" href="https://www.youtube.com/watch?v=18yK0G9hHts">character theme songs</a>, <a target="_blank" href="https://www.youtube.com/watch?v=0nlJuwO0GDs">music videos</a>, and "League" inspired bands — and in turn, to leverage his own creative background."No one was asking for it," Linke said, but no one was stopping him either. By 2015, Linke had built a team underneath him, and had proven himself within the company. What he lacked was a challenge.The same was true of Yee, who had pivoted to creative design at the company. Together, after years of playing in different creative sandboxes within the "League" universe, they began conceptualizing the television show that would become "Arcane."It was unprecedented work at Riot, which at the time had yet to expand into any traditional television or film projects."We had to really take baby steps," Linke said. "We had to not just build the creative, but also, the way to convince leaders who have never worked on a TV show and invested in a TV show. So a lot of it was just starting with the basics."<div type="image" title="ekko in season two of arcane, sitting on a hoverboard and holding a golden weapon in his left hand. he's looking forward intently" height="818" width="1091" msid="115116338" hostid="261" sizebytes="24570"></div>That included animation and dialogue tests — "We had never heard our characters talk," Linke said — in addition to crafting the show's story. After about a year and a half of work, the company committed to making a pilot episode in 2016 — and clearly, it worked out well for them in the end.Still, Linke and Yee took risks along the way, chief among them betting on the French production studio Fortiche. Prior to "Arcane," the studio had worked on music videos and promotional materials for Riot and artists like the Gorillaz, as well as some television projects. But none matched the scale of what "Arcane" would become: nine episodes in its first season, animated at a quality reminiscent of film rather than television."People were very concerned about it, but what Fortiche had that you cannot fix with money is passion," Linke said. "I knew they would put their life on pause to make the greatest thing of their career with this project, and I worked with other animation studios where that's simply not the case. It's a gig, but Fortiche had something to prove."<h2 id="78b8acb1-059c-4fb7-8d4e-7f15172f982b">'Arcane' was an expensive labor of love that Riot hasn't yet replicated — but it's a great proof of concept</h2>Nine years after Linke and Yee began to work on "Arcane" in 2015, the series is ending after two nine-episode seasons. The project didn't come without significant expenses: Fortiche's feature-quality animation meant that production moved at a slower pace more typical of animated film rather than animated television.Citing sources familiar with production, <a target="_blank" href="https://variety.com/2024/gaming/news/riot-games-arcane-hollywood-netflix-most-expensive-animated-series-ever-1236196655/">Variety</a> recently reported that the show's first season cost upward of $80 million to make, and its second close to $100 million. (Riot didn't immediately respond to BI's request for comment regarding the reported cost of "Arcane.")Even if Riot doesn't directly turn a profit on the series, that may not be the company's chief goal, anyway. Film and television isn't Riot Games' primary business; video games like "League of Legends" are. A genuinely good television series like "Arcane" not only engages current players who may spend money on in-game cosmetics, but brings new eyes to the franchise. The real-life cosmetics, like the <a target="_blank" href="https://www.businessinsider.com/rihanna-fenty-beauty-netflix-arcane-vault-makeup-collaboration-2024-10">"Arcane" season two drop with Fenty Beauty</a>, probably don't hurt either.<div type="image" title="vi in arcane, the animated series. her pink hair has been colored partially black, and there's black paint smeared over her face with andages. she has a lip and nose piercing, and a tattoo with the roman numeral VI on her cheek" height="2160" width="2880" msid="115116335" hostid="261" sizebytes="103128"></div>"Arcane" remains Riot's shiniest and sole successful adaptation. By putting the first major "League" adaptation in the hands of people who knew it best and cared about getting it right, "Arcane" sets a precedent for how to make something beloved by fans and critics alike. Reportedly steep production costs and a lengthy timeline gave them the time and space to do so — even if, as Linke told <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.washingtonpost.com/video-games/2021/11/06/arcane-netflix-league-legends/">The Washington Post</a> ahead of season one, it meant burning a "massive hole in Riot's wallet."Ultimately, Linke says the show was a product of "selfish desire." The fact that it's motivated by passion, and not pragmatism, is why it's so good."For us, we love the game," he said. "We wanted to see those characters come alive. That's it. That's enough to say this should exist for ourselves.""Arcane" season two, "Act One" is currently streaming on <a target="_blank" class="" href="https://www.netflix.com/">Netflix</a>. Part two premieres on Saturday, November 16.

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