Plus: IBM and Red Hat commit $5 billion for open source security initiative. And Snowflake signs $6 billion deal to buy Amazon chips. Imani Moise hosts.
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[00:00:00] [SPEAKER_02] Many companies are struggling to scale their AI deployments or even move them past the pilot stage. Often the problem isn't technology, but organizational misalignment around goals, processes and incentives. At the break, join Caroline Roach, senior partner IBM Consulting to learn why.
[00:00:16] [SPEAKER_00] Here's your Morning TNB Tech Minute for Thursday, May 28th. I'm Imani Moise for The Wall Street Journal. Meta Platforms is rolling out subscription plans for Facebook, Instagram and WhatsApp and testing new subscriptions for its AI chatbot. Facebook Plus and Instagram Plus will be priced at $3.99 per month, while WhatsApp Plus will cost $2.99 a month. Subscriptions to its chatbot called Meta AI will be priced at $7.99 a month for the basic tier and $19.99 for premium.
[00:00:46] [SPEAKER_00] The new subscription offerings come a week after Meta laid off 10% of its workforce, in part to free up funds for its planned $145 billion in capital spending this year on AI infrastructure. IBM and Red Hat are committing $5 billion to a new initiative called Project Lightwell, which aims to secure open source software supply chains for businesses.
[00:01:07] [SPEAKER_00] The companies say they will deploy a global force of 20,000 engineers to establish a trusted enterprise clearinghouse that will use advanced AI tools to identify, test and fix security vulnerabilities across massive volumes of open source code. IBM says more than 90% of Fortune 500 companies currently rely heavily on open source software, making them vulnerable as bad actors use AI to exploit security bugs.
[00:01:33] [SPEAKER_00] Project Lightwell already counts corporate giants like Bank of America, Goldman Sachs, and Visa among its early adopters. And we exclusively report Amazon Web Services has signed cloud storage company Snowflake as its latest chip customer. Snowflake plans to pay $6 billion over the next five years for access to Amazon's Graviton chips inside AWS data centers. The deal will make Snowflake one of AWS's largest customers for CPU-based computing, alongside Meta and Apple.
[00:02:03] [SPEAKER_00] Snowflake was founded on AWS's platform in 2015 and has been expanding its relationship with Amazon ever since. The company has nearly 14,000 customers, including rewards in advertising startup Fetch and AI analytics platform Hex. And that's your TNB Tech Minute. We'll be back this afternoon with more.
[00:02:22] [SPEAKER_02] Scaling AI successfully requires more than the right technology. Here again is Caroline Roach, Senior Partner, IBM Consulting.
[00:02:29] [SPEAKER_01] The biggest thing that we were talking about a year ago is what model to use. And the biggest thing that I'm talking about with my clients now is how do I drive change within my organization.
[00:02:41] [SPEAKER_02] Companies able to identify, correct, and then avoid misalignment will be best positioned to deliver meaningful business value from AI.
[00:02:47] [SPEAKER_01] The organizations that are the most successful set very clear targets and have several priorities that are very clear across the enterprise. The technology is really good, but if you're not changing your organizational alignment, not incentivizing your people correctly, not looking at workflows, you're not going to see real value with it.
[00:03:08] [SPEAKER_02] Visit ibm.com slash think slash leadership to learn how building organizational alignment can help deliver AI deployments that scale and drive growth. This content was created by custom content from WSJ, a unit of the Wall Street Journal Advertising Department.