Business of Tech: Daily 10-Minute IT Services Insights

OpenAI has successfully raised $40 billion in what is believed to be the largest private technology funding round ever, boosting its valuation to $300 billion. This funding round was predominantly led by the Japanese investment firm SoftBank, which has now surpassed Microsoft as OpenAI's largest investor. Despite the impressive growth in revenue and user base, OpenAI continues to face challenges in achieving profitability, as it invests heavily in infrastructure and user acquisition. The company has announced plans to release its first open-weight language model since 2019, marking a strategic shift to adapt to competitive pressures from open-source alternatives.The podcast also highlights significant advancements in AI applications across various sectors. Researchers are leveraging AI to accelerate drug repurposing, enabling faster exploration of treatment options for patients with limited choices. American Express has integrated AI into its internal IT support, achieving a remarkable reduction in IT escalations and enhancing travel assistance for its elite customers. These examples illustrate the potential of AI to deliver tangible business value and improve operational efficiency.However, the integration of AI is not without its challenges. Bloomberg News has faced difficulties in generating accurate AI summaries for articles, leading to corrections and concerns about the reliability of AI-generated content. This underscores the importance of maintaining quality control and human oversight in AI applications, particularly in fields like journalism where accuracy is paramount.The episode concludes with a discussion on trends towards simplifying complex processes in business. Innovations such as rapid business valuation tools, enhanced customer communication through Rich Communication Services, and streamlined cyber insurance solutions reflect a broader movement to improve efficiency and accessibility in various industries. These developments highlight the ongoing evolution of technology and its impact on business operations, emphasizing the need for strategic implementation of AI and other technological advancements. Three things to know today 00:00 OpenAI’s Rollercoaster Ride: Big Money, Open Models, and Profit Puzzles06:29 AI Wins and Woes: Curing Disease, Solving Problems, and Sometimes Missing the Mark10:41 MSPs Get a Boost: Faster Insights, Smoother Communication, and Insurance Made Easy  Supported by:  https://getnerdio.com/nerdio-manager-for-msp/  Join Dave April 22nd to learn about Marketing in the AI Era.  Signup here:  https://hubs.la/Q03dwWqg0  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Michael Duffy, President Donald Trump's nominee for Undersecretary of Defense for Acquisition and Sustainment, has committed to reviewing the Pentagon's Cybersecurity Maturity Model Certification (CMMC) 2.0 if confirmed. This revamped program, effective since December, mandates that defense contractors handling controlled, unclassified information comply with specific cybersecurity standards to qualify for Department of Defense contracts. Concerns have been raised about the burden these regulations may impose on smaller firms, with a report indicating that over 50% of respondents felt unprepared for the program's requirements. Duffy aims to balance security needs with regulatory burdens, recognizing the vulnerability of small and medium-sized businesses in the face of cyber threats.In addition to the CMMC developments, the General Services Administration (GSA) is set to unveil significant changes to the Federal Risk Authorization Management Program (FedRAMP). The new plan for 2025 focuses on establishing standards and policies rather than approving cloud authorization packages, which previously extended the process for up to 11 months. The GSA intends to automate at least 80% of current requirements, allowing cloud service providers to demonstrate compliance more efficiently, while reducing reliance on external support services.Across the Atlantic, the UK government has announced a comprehensive cybersecurity and resilience bill aimed at strengthening defenses against cyber threats. This legislation will bring more firms under regulatory oversight, specifically targeting managed service providers (MSPs) that provide core IT services and have extensive access to client systems. The proposed regulations will enhance incident reporting requirements and empower the Information Commissioner's Office to proactively identify and mitigate cyber risks, setting higher expectations for cybersecurity practices among MSPs.The episode also discusses the implications of recent developments in AI and cybersecurity. With companies like SolarWinds, CloudFlare, and Red Hat enhancing their offerings, the integration of AI into business operations raises concerns about security and compliance. The ease of generating fake documents using AI tools poses a significant risk to industries reliant on document verification. As the landscape evolves, IT service providers must adapt by advising clients on updated compliance practices and strengthening their cybersecurity measures to address these emerging threats. Four things to know today 00:00 New Regulatory Shifts for MSPs: CMMC 2.0, FedRAMP Overhaul, and UK Cyber Security Bill05:21 CISA Cuts and Signal on Gov Devices: What Could Go Wrong?08:15 AI Solutions Everywhere! SolarWinds, Cloudflare, and Red Hat Go All In11:37 OpenAI’s Image Generation Capabilities Raise Fraud Worries: How Businesses Should Respond  Supported by:  https://www.huntress.com/mspradio/https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship  Join Dave April 22nd to learn about Marketing in the AI Era.  Signup here:  https://hubs.la/Q03dwWqg0  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Cybersecurity startups are experiencing a significant revenue surge as threats associated with artificial intelligence continue to multiply. Companies like ChainGuard have reported a remarkable seven-fold increase in annualized revenue, reaching approximately $40 million, while Island anticipates its revenue will hit $160 million by the end of the year. The rise in cyber attacks, particularly a 138% increase in phishing sites since the launch of ChatGPT, has created a greater demand for cybersecurity solutions. A recent report from Tenable highlights that 91% of organizations have misconfigured AI services, exposing them to potential threats, emphasizing the urgent need for organizations to adopt best practices in cybersecurity.Intel is undergoing a strategic reset under its new CEO, Lip Bu Tan, who announced plans to spin off non-core assets to focus on custom semiconductor development. While the specifics of what constitutes core versus non-core assets remain unclear, this move aims to streamline operations and enhance innovation in the semiconductor space. However, Intel's past struggles with execution raise questions about the effectiveness of this strategy. The company must leverage its strengths while shedding distractions to remain competitive in the evolving semiconductor landscape.Google has made strides in email security by allowing enterprise Gmail users to apply end-to-end encryption, a feature previously limited to larger organizations. This democratization of high-security email comes in response to rising email attacks, enabling users to control their encryption keys and reduce the risk of data interception. Meanwhile, Apple has addressed a significant vulnerability in its iOS 18.2 passwords app that exposed users to phishing attacks, highlighting the importance of rapid response to security flaws.CrowdStrike and SnapLogic are enhancing their partner ecosystems to improve security operations and streamline integration processes. CrowdStrike's new Services Partner program aims to promote the adoption of its next-gen security technology, while SnapLogic's Partner Connect program focuses on collaboration with technology and consulting partners. Additionally, OpenAI has increased its bug bounty program rewards, reflecting the need for ongoing vigilance in cybersecurity as AI becomes more prevalent. The convergence of AI and cybersecurity presents both challenges and opportunities, necessitating proactive measures to safeguard sensitive information. Four things to know today 00:00 Cybersecurity Startups See Revenue Surge as AI Threats Multiply—Are We Prepared?04:44 Intel’s Strategic Reset: Spinning Off Non-Core Assets to Boost Custom Chip Development06:09 Google Brings Enterprise-Level Encryption to Gmail as Apple Patches Major iOS Vulnerability08:56 CrowdStrike and SnapLogic Step Up Partnerships While OpenAI Sweetens Bug Bounty Reward  Supported by:  https://syncromsp.com/  Join Dave April 22nd to learn about Marketing in the AI Era.  Signup here:  https://hubs.la/Q03dwWqg0  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The economy is currently facing a challenging combination of slowing growth and rising inflation, which is impacting managed service providers (MSPs) and IT services firms. The Personal Consumption Expenditures Price Index has shown a significant increase, indicating heightened inflation, while consumer spending is weakening. This economic squeeze is forcing businesses to reassess their budgets, leading to a potential increase in demand for MSPs that can offer cost-effective solutions and efficiency improvements. As organizations seek to navigate these turbulent times, the need for integrated security platforms and open-source AI technologies is becoming increasingly critical.A recent survey by Flexera highlights a notable shift in how organizations, particularly small to medium-sized businesses, are turning to MSPs for public cloud management. The percentage of small businesses utilizing MSPs has risen from 36% to nearly 50%, reflecting a growing trust in these providers to manage complex cloud environments. Despite the increase in cloud spending, cost management remains a significant challenge, with many organizations identifying it as their top concern. This trend underscores the importance of differentiation among MSPs, as the market becomes more competitive.In the realm of technology advancements, Amazon is set to launch its new AI-enabled assistant, Alexa Plus, which will introduce various features aimed at enhancing user experience. Meanwhile, Microsoft is rolling out new AI tools for Microsoft 365 Copilot, designed to improve research and data analysis capabilities. These developments highlight the ongoing evolution of AI technologies and their practical applications in business settings. However, as new capabilities emerge, it is essential for businesses to focus on enhancing outcomes rather than getting caught up in the hype.Security threats continue to evolve, with a new phishing-as-a-service operation identified that employs advanced techniques to evade detection. Microsoft is also transitioning to passwordless authentication methods across its platforms, aiming to enhance user security for billions of users. The Pentagon has issued warnings regarding vulnerabilities in messaging apps like Signal, emphasizing the need for caution in communications. As these changes unfold, it is crucial for providers to assist clients in adapting to new security measures and to educate them on the benefits of transitioning to passwordless environments. Four things to know today 00:00 Economic Squeeze: Need Smart Moves as Costs Rise and Growth Slows05:35 MSPs See Surge in Cloud Management Demand07:38 Alexa Gets Smarter, Microsoft Gets Analytical09:44 Phishing Gets Sneaky with DoH, While Microsoft Says Bye-Bye to Passwords  Supported by:  https://getnerdio.com/nerdio-manager-for-msp/ Event: : https://www.nerdiocon.com/  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Sahil Agarwal, co-founder and CEO of Enkrypt.ai, discusses the critical importance of security and compliance in the realm of artificial intelligence (AI) models. His company focuses on helping enterprises adopt generative AI while managing the associated risks. Agarwal explains that the mission of Enkrypt.ai has evolved from developing encryption algorithms to creating comprehensive solutions that provide ongoing management and monitoring of AI applications. This shift aims to ensure that businesses can safely integrate AI technologies without exposing themselves to brand, legal, or security risks.Agarwal highlights the dual approach of Enkrypt.ai, which includes an initial risk assessment followed by continuous monitoring and management. The risk assessment involves simulating attacks on AI systems to identify vulnerabilities, while the ongoing management ensures that any identified risks are mitigated effectively. This iterative process creates a feedback loop that enhances the security posture of generative applications, allowing businesses to operate with greater confidence.The conversation also touches on the economic challenges surrounding generative AI, where many companies invest heavily in projects that struggle to reach production due to unresolved security and compliance issues. Agarwal notes that while there is a democratization of AI technology, the real value lies in how enterprises apply these models. He emphasizes the need for businesses to adopt a proactive approach to security, particularly as they scale their use of AI agents and chatbots.Finally, Agarwal addresses the pressing issue of data leakage, particularly when using third-party AI models. He advises organizations to keep sensitive data on the client side and to choose trusted solutions to mitigate risks. By implementing robust security measures and maintaining a vigilant posture, businesses can harness the power of AI while safeguarding their proprietary information.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

AI is rapidly emerging as a significant revenue driver for managed service providers (MSPs), with a notable increase in expectations for AI-related revenue. According to recent data, 53% of MSPs anticipate substantial AI revenue this year, a significant rise from 32% the previous year. This shift is attributed to a growing understanding of AI's potential, particularly following the rise of generative AI technologies like ChatGPT. While some companies are genuinely building capabilities, others may still be caught up in the hype. The conversation also touches on the importance of integrating AI into existing services, such as cybersecurity and data management, as MSPs look to monetize these technologies.On the flip side, adversaries are also leveraging AI to enhance their tactics, particularly in social engineering and phishing campaigns. MacKenzie Brown from Blackpoint Cyber highlights that threat actors are using AI to improve their operational effectiveness, making their attacks more sophisticated. This raises concerns about the security posture of organizations that may not have robust data governance and identity management practices in place. As MSPs begin to adopt AI technologies, they must also ensure that their clients have the necessary security measures to protect against these evolving threats.The discussion further explores the ongoing challenges in cybersecurity, particularly regarding basic security practices that remain unaddressed. Misconfigurations in cloud environments continue to be a significant vulnerability, and many organizations still struggle with fundamental cybersecurity measures. Carolyn April emphasizes that while cybersecurity remains a critical revenue driver for MSPs, many are still operating at a basic level rather than advancing to more sophisticated security solutions. This gap presents both a challenge and an opportunity for MSPs to enhance their service offerings.Finally, the conversation touches on the implications of recent developments in cybersecurity policy and enforcement. The discussion highlights the importance of having consequences for breaches of cybersecurity laws, as a lack of enforcement can undermine the efforts of solution providers. Both MacKenzie and Carolyn agree that the current state of cybersecurity policy is crucial for the health of the industry, as it impacts how MSPs can effectively sell their services. The episode concludes with insights on the need for better education and talent development in the cybersecurity field to address these ongoing challenges.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

CoreWeave has successfully launched its initial public offering (IPO), pricing shares at $40 and raising $1.5 billion, marking the largest tech offering in the U.S. since 2021. Despite initially targeting a higher share price, the final valuation of approximately $19 billion reflects a significant reduction in investor sentiment towards AI infrastructure. This IPO indicates a cautious optimism in the market, as CoreWeave capitalizes on the ongoing demand for GPU resources essential for AI development, particularly among smaller developers who cannot afford hyperscaler contracts. However, the reduced pricing raises questions about the sustainability of AI workload demand and the reliance on NVIDIA's supply chain.In the realm of AI communication, PwC has introduced AgentOS, a platform designed to enhance collaboration among AI agents within enterprises. After observing that many AI agents operate independently, PwC aims to create a more integrated environment that allows these agents to work together effectively. The platform supports major systems from companies like Anthropic, Google Cloud, and Microsoft Azure, enabling organizations to automate complex tasks more efficiently. This initiative highlights the current fragmentation in enterprise AI deployments and the need for improved interoperability among AI systems.Intel has also made strides in AI adoption with the launch of new initiatives targeting edge computing in industries such as retail and manufacturing. Their new offerings, including Intel Edge Systems and Edge AI Suites, aim to facilitate the integration of AI into existing infrastructures while addressing cost and performance challenges. By collaborating with partners like Cisco, Intel seeks to enhance real-time analytics and data privacy, emphasizing the importance of AI in low-power environments. These developments reflect a broader trend towards the evolution of AI infrastructure and its application across various sectors.As Microsoft celebrates its 50th anniversary, it highlights the economic opportunities generated through its extensive partner ecosystem. A recent survey indicates that for every dollar Microsoft earns, its partners earn significantly more, showcasing the value of collaboration in driving innovation. However, as Windows 10 approaches its end of support, small and medium-sized businesses face challenges in managing their IT infrastructure, particularly concerning legacy systems and cybersecurity vulnerabilities. The transition away from outdated operating systems presents a significant opportunity for IT service providers to offer essential services in asset management and endpoint protection, ensuring that businesses can navigate this complex landscape securely. Four things to know today 00:00 CoreWeave IPO Taps the Brakes on AI Hype—Still Pulls in $1.5B Backing for GPU-Powered Growth03:40 AI Agents Start Talking, Retail Shelves Get Smarter, and Accents Get a Makeover—Here Comes the New AI Stack07:48 Microsoft’s Still Making Money for Everyone—But Windows 10’s Exit Could Cost SMBs Big10:59 From Hotel Tasks to Missile Warnings, Who’s Watching the AI? A Deep Dive Into Control and Risk  Supported by:  https://www.huntress.com/mspradio/https://getflexpoint.com/msp-radio/  Event: : https://www.nerdiocon.com/  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Jeff Borello, CEO and co-founder of Andromeda Technology Solutions, shares insights into the managed services landscape, particularly focusing on the needs of manufacturing clients in the Midwest. With over 30 years of experience, Borello discusses the evolution of his company from a break-fix model to a pure managed services provider, emphasizing the importance of project delivery and cloud migration. He highlights the company's commitment to providing flat-rate monthly services while maintaining a strong professional services team to address complex technical needs.Borello notes that many potential clients often come to them already dissatisfied with their current managed service providers, primarily due to poor response times and unresolved issues. He explains that while customers may initially seek project work, the focus is on transitioning them to a managed service platform to better understand their needs. Cybersecurity is a significant concern, but many clients only prioritize it after experiencing an incident, leading to a challenging sales process that requires careful navigation.The conversation also touches on the internal operations of Andromeda, which has been recognized as one of the best places to work in Illinois. Borello discusses the importance of documenting processes and ensuring adherence to them, as well as the challenges of maintaining a strong company culture in a hybrid work environment. He emphasizes the need for a middle management layer to facilitate day-to-day operations, allowing leadership to focus on strategic growth.Looking ahead, Borello expresses a desire to streamline tools and integrate automation and AI into their operations while ensuring that customer service remains a priority. He acknowledges the potential disruptions that generative AI could bring to the industry and the need for a careful balance between efficiency and customer satisfaction. Ultimately, he remains optimistic about the future of Andromeda, driven by a strong team and a commitment to continuous improvement.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

OpenAI has released research in collaboration with the MIT Media Lab that explores the emotional impact of using ChatGPT. The study indicates that while over 400 million people engage with ChatGPT weekly, only a small number form emotional connections with the chatbot, which is primarily marketed as a productivity tool. Notably, female users reported a decrease in socialization after four weeks of use, and those who interacted with the chatbot in a voice different from their own experienced heightened feelings of loneliness. The findings suggest that users who bond with ChatGPT may face increased loneliness and emotional dependency, prompting OpenAI to submit these studies for peer review.In the competitive landscape of generative artificial intelligence, OpenAI is reportedly facing significant financial challenges, with annual operating costs estimated between $7-8 billion. AI scholar Kai-Fu Lee points out that as foundational models become more commoditized, OpenAI may struggle to compete with cheaper alternatives like DeepSea, which operates at just 2% of OpenAI's costs. Lee emphasizes that the economics of the AI industry are shifting towards open-source models, which are cheaper to produce and operate, suggesting that while OpenAI is not on the brink of collapse, the market may soon be dominated by a few key players.The podcast also discusses the evolving capabilities of AI models, highlighting the latest version of ChatGPT, which can now blend text and image generation and respond to voice commands. Additionally, DeepSeek has upgraded its AI model, showing improved performance in coding and reasoning tasks, while Google has introduced its Gemini 2.5 Pro model, which boasts enhanced reasoning capabilities and a large token context window. These advancements indicate a trend where AI models are becoming more versatile and capable of handling complex tasks, emphasizing the importance of deployment flexibility and cost efficiency in the evolving AI landscape.Finally, the episode addresses ongoing privacy concerns surrounding AI technologies, including a new complaint against OpenAI in Europe for generating false information and a settlement reached by Clearview AI regarding privacy violations. The discussion highlights the legal implications of using generative AI tools, particularly in relation to GDPR compliance. Additionally, the podcast examines the lack of diversity in IT leadership, revealing that despite efforts towards diversity, equity, and inclusion, the demographic makeup of IT leadership remains largely unchanged, underscoring the need for continued focus on inclusive leadership in the tech industry. Four things to know today 00:00 Talking to ChatGPT Might Hurt Your Mood—And OpenAI’s Bottom Line04:15 Who’s Winning the AI Arms Race? Depends If You Want Comics, Code, or Context08:10 From Encrypted Chats to AI Slip-Ups—More in “What Could Possibly Go Wrong?”12:00 All Talk, No Change? IT Leadership Still Looks the Same in 2025  Supported by:  https://syncromsp.com/  Event: : https://www.nerdiocon.com/  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

A significant security breach has emerged involving senior members of the Trump administration, including Vice President J.D. Vance and Defense Secretary Pete Hedgeseth, who shared top-secret military plans regarding U.S. attacks on the Houthi group in Yemen via the encrypted messaging app Signal. This breach was uncovered by journalist Jeffrey Goldberg, who found himself in a group chat with key cabinet members discussing sensitive information. The National Security Council has confirmed the authenticity of the message chain, leading to calls for an immediate investigation. The incident raises serious concerns about cybersecurity practices within the federal government, particularly regarding the use of unauthorized communication tools for classified discussions.The growing popularity of Signal among federal employees and military planners during the Trump administration highlights a troubling trend of shadow IT at the executive level. This situation poses a challenge for IT leaders, as it undermines established security protocols and sends a dangerous message to lower-level staff and contractors about the importance of adhering to internal policies. If top officials can bypass security measures without facing consequences, it diminishes the perceived value of compliance and accountability across the organization.In response to this breach, experts emphasize the need for stronger cybersecurity measures and accountability for federal leaders. The incident illustrates that policy violations can extend beyond corporate rules into federal law, with potential implications for national security. The lack of consequences for high-ranking officials could lead to a culture of complacency regarding cybersecurity, where employees may view policies as mere compliance theater rather than essential guidelines for protecting sensitive information.The podcast also discusses recent advancements in cybersecurity tools and services, including Microsoft's expansion of its AI-powered security co-pilot and Verizon's launch of a generative AI-powered text messaging solution for small businesses. These developments reflect a broader trend toward operationalizing AI in cybersecurity workflows and enhancing security measures for organizations. As managed service providers (MSPs) seek to streamline operations and improve compliance, the integration of new tools and partnerships is becoming increasingly important in navigating the evolving landscape of cybersecurity and data protection. Four things to know today 00:00 Shadow IT at the Top: War Plans on Signal Show Why Cyber Rules Without Consequences Don’t Work05:54 Smarter Security, Faster Replies: Microsoft and Verizon Put AI on the Job for Everyone08:51 Fewer Tools, More Power: MSP Upgrades from Syncro, Cohesity, and MSPTerms Aim to Do It All11:53 One-Stop MSP? New Integrations Aim to Save Time, Boost Profits, and Lock You In  Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship https://www.huntress.com/mspradio/  Event: : https://www.nerdiocon.com/  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.