Category: Blog

The German car rental company 
Sixt announced on Tuesday, October 4, its intention to purchase more than 
100,000 electric vehicles from the Chinese manufacturer 
BYD Auto . The first vehicles will be delivered as early as this year, Sixt stated.

Sixt is aligning itself with its competitor Hertz

In its press release, the rental company states that it has committed to delivering several thousand BYD vehicles this year in Germany, France, the Netherlands, and the United Kingdom . Sixt claims to want to be ” the leading BYD electric vehicle rental company in Europe .” By the end of 2022, Sixt has also promised to offer 20 new electric models, ” Audi, Opel, Renault, BMW, Peugeot, Tesla, and now BYD ,” according to a brand spokesperson.

The German company’s announcement comes after the agreement reached a few weeks ago between its competitor Hertz and the American automaker General Motors . Hertz has signed several contracts, the first for 175,000 electric cars with the American manufacturer over the next five years. The second contract was signed in 2021 with Tesla for 100,000 units. Finally, a third deal was signed in April 2022 for 65,000 vehicles with Polestar.

Rental companies are likely looking to anticipate a future ban on internal combustion and hybrid vehicles in Europe in 2035. Sixt aims to have between 60% and 90% of its fleet comprised of electric vehicles by 2030. Meanwhile, Hertz plans to have at least 25% of its fleet replaced by the end of 2024.

BYD Auto plans to expand in Europe

The Chinese company, BYD Auto, dominates the electric car market in China , ahead of Tesla . It sold 175,000 electric and hybrid vehicles in August 2022, while Tesla struggled to reach 77,000 sales in the Middle Kingdom.

BYD now wants to expand into Europe. In 2020, the company conducted an initial test in Norway, the testing ground for most automakers. While the company hasn’t released sales figures, the trial appears to have been successful, as last week BYD unveiled the prices of its three electric models that will be sold in Europe. The flagship models, the Han sedan and the Tang SUV, will be priced at €72,000. Meanwhile, the Atto 3 SUV, which will be sold to Sixt, will cost €38,000.

Car rental companies are racing to modernize their fleets. Sixt is focusing on China , while Hertz continues to invest in the United States . To promote these new models, Hertz, in collaboration with BP, has begun developing a charging network in the US. Europe currently has 300,000 charging points, and the goal is to increase this number tenfold by 2030. Sixt announced on September 20th that it will invest €50 million to build its own charging infrastructure.

In recent days, 
Microsoft has reportedly been in talks with 
OpenAI , an 
artificial intelligence company 
known for offering a large number of freely available and/or open-source AI models. While no agreement has yet been reached, the two companies are in discussions regarding a potential new investment in OpenAI by Microsoft.

Microsoft relies on OpenAI to integrate AI into its products and services

Founded in 2015 by Elon Musk and Sam Altman, among others, OpenAI is valued at over $20 billion, according to The Information and The Wall Street Journal . Even though the company is far from wanting to be acquired, this hasn’t stopped several tech players from approaching it for various reasons.

In 2019, Microsoft invested nearly a billion dollars to develop new AI-based technologies. In return, Microsoft, through Azure, became OpenAI’s exclusive cloud provider. A few months later, a new supercomputer built exclusively for OpenAI was launched, and simultaneously, the Californian company secured exclusive rights to GPT-3 , one of the world’s most comprehensive language models with 175 billion parameters .

Thanks to this, Microsoft gives its users access to a tool for coding in natural language, and facilitates access to this model for developing low-code applications on Azure with OpenAI APIs. Later, in 2021, the tech giant even announced that it had designed an NLP model more efficient than GPT-3 in collaboration with NVIDIA.

OpenAI is making a splash with DALL-E 2, which is attracting Microsoft’s attention.

OpenAI, for its part, recently made headlines with DALL-E 2, an AI model that allows users to enlarge a previously provided image using a text description. While the tool was initially in beta , the company has removed the waiting list, allowing anyone to sign up . Today, nearly 2 million people are reportedly using this technology.

In a blog post , Liat Ben-Zur, one of Microsoft’s vice presidents, highlighted OpenAI’s work. ” The deployment of DALL∙E 2 across Microsoft products and services reflects how the company’s investment in AI research helps to thoughtfully integrate AI into everything it builds, produces, and delivers to help everyone drive productivity and innovation .”

It’s worth noting that Google, along with Alphabet, and even Microsoft have also developed image generators that use text. Microsoft, which is increasingly focused on integrating AI into its range of products and services, has therefore entered into negotiations with OpenAI in recent weeks. For now, no figures have been disclosed, and the amount invested by Satya Nadella’s company may change depending on the expectations of both parties.

The Hi! Paris consortium has won the AI ​​Cluster call for projects. Led by the Institut Polytechnique and HEC Paris, it also includes the CNRS and Inria. It has been awarded €70 million to ” 
establish one of the world’s leading centers for AI research, training, and innovation serving society in France ,” according to 
the press release published this Wednesday.

Boosting research and training

The École nationale des Ponts et Chaussées and the University of Technology of Troyes complete the consortium. Created in 2020 , Hi! Paris was presented as an interdisciplinary center in data science and artificial intelligence (AI).

It has more than 250 researchers. Large companies support this structure, such as TotalEnergies, Vinci, L’Oréal and Capgemini.

Among its objectives is the creation of ” high-potential projects ” and start-ups. The millions of euros allocated to it will be used to build ” a network of about ten internationally renowned French academic centers in artificial intelligence .”

These infrastructures should then enable the attraction of foreign talent and the training of a large number of people in AI. Through this project, France also intends to contribute to the emergence of international champions.

The AI ​​Cluster ” also aims to preserve and consolidate the position of French research in the main areas of AI. This project aims to deploy AI innovation in all key economic sectors ,” the press release explains.

Hi! Paris has listed several challenges to overcome. Supported by HEC and the Institut Polytechnique, the center aims to ” produce cutting-edge research ” and improve the competitiveness of French companies through training. But that’s not all.

He wants to increase the number of international programs to attract the best talent, create 100 unicorns by 2030, feminize the sector, and finally ” play an active role in the interactions ” between French and European AI clusters.

Wave of AI investments in May

The call for projects won by the consortium falls within the framework of France 2030 and the announcements made by Emmanuel Macron on Tuesday, May 21. The President of the Republic announced €400 million to accelerate the training of AI talent through nine clusters.

The head of state has one particular objective in mind: to increase the number of people trained in this technology each year from 40,000 to 100,000. These waves of investment also come after the announcements made during the Choose France summit earlier this month.

For example, the IT giant IBM announced the creation of a research and development center in the Paris region. Accenture, the consulting firm, revealed the upcoming opening of two research centers dedicated to generative AI.

All of these investments align with the government’s objective of making France a global leader in AI. The €70 million AI Cluster funding should, in particular, enable Hi! Paris to achieve an even greater international presence.

A study 
conducted by In Extenso, a consulting firm specializing in innovation management, reports on 
fundraising figures for startups in 2019. The study allows, among other things, a comparison of European and French figures, showing that there was a clear increase in investments this year.

Fundraising in Europe

European startups “maintained the record for venture capital investment in 2019,” reports Patricia Braun, partner at the consulting firm In Extenso.
It is worth recalling the methodological principles outlined by the firm before presenting their figures: The study, conducted in partnership with the ELMI University Research School at the University of Azur, presents “data extracted from the Dealroom database and excludes data relating to fund subsidies and economic growth, while average investment amounts are calculated based on deals for which the amount raised is known.”

The report shows that €22.3 billion was raised, primarily in the healthcare, FoodTech, and FinTech sectors . The amounts raised increased by 51%, and investment amounts increased by 99% (€10.7 million).

Leading the pack are Deliveroo with €523 million raised, UiPath with €516 million and FlixBus with €500 million.

Fundraising in France

The analysis presented indicates that France is following the same trend as Europe, raising 3.8 billion euros during the last three quarters of 2019. For Patricia Braun, this new record is proof that “the ecosystem has been strengthening for some years and the players are becoming more professional.”

According to the barometer used, average investment amounts increased by 66% nationally, reaching €9.3 million, while the number of transactions decreased by 13%. These trends not only demonstrate a “solid vision of innovation in France,” but also suggest that the €5 billion investment target could be reached by the end of 2019, explains Patricia Braun, speaking to L’Usine digitale . This bodes well for a “promising resurgence” for the French ecosystem.

The investment sectors are the same as in Europe. However, among the top three startups raised in France are Meero, nicknamed the “Uber of photography” with €209 million, Doctolib with €150 million, and Wifirst, an internet service provider primarily for students, hospitals, and the tourism sector. This startup, backed by the Bolloré Group until last September, and whose stake has since been sold to Amundi, Bpifrance, and Socadif Capital, has raised €110 million following the acquisition of new shareholders.

Public initiatives have heavily invested in startup growth in recent years. France is indeed renowned for generating a large number of startups. The government recently launched the Next 40 program to provide financial support to growing startups and facilitate their IPOs. Among them are Meero and Doctolib. This initiative aligns with the French government’s goal of fostering the growth of unicorn companies by 2025.

Positive figures, but a slight lack of perspective

While this assessment is positive compared to previous years, some are more cautious about the future of startups. Firstly, because many of them favor the gig economy model, which doesn’t always guarantee certain social benefits for employees or freelancers . Secondly, because many, despite the aforementioned fundraising efforts, struggle to scale effectively over time due to the challenges of rapid growth. International expansion, for example, is a key milestone, and it’s far from guaranteed. Furthermore, attention should be paid to the quality of the digital sectors in which startups are operating.

Thus, following the 2019 CES in Las Vegas, Le Journal du Net, far from being lenient towards inventions dismissed as “gadgets more at home in the Lépine competition,” also emphasized the need to create “products designed for market needs.” For Nicolas Menet, CEO of the “aging well” ecosystem, when “public money is involved, public authorities must choose priorities to which they can direct resources and support.” He cited the circular economy and the ecological transition sector as examples, arguing that they address a genuine need and could create long-term employment. However, the criteria for admitting startups to the Next 40 program (supported by the French government) consider only financial aspects: “a revenue valuation of one billion euros,” “one of the largest fundraising rounds in the last three years,” or “30% annual growth over the previous three fiscal years.” To be continued…

If you had invested $1 million (€900,000) in Netflix on January 1, 2010, you would have $43 million (€39 million) today. According to 
CNBC ‘s annual report , over the past ten years, Netflix’s return was 
4,181% and its index rose by 189%. This was the 
best return of the decade .

Netflix: the company of the decade?

In comparison, since its IPO, Apple’s stock return has increased by 9,149%, while Facebook’s stock return has reached “only” 298%. When Netflix had only 12 million paying subscribers in 2010 , its market share was nowhere near what it is today.

Yet, in 2019, 
Netflix was considered the 5th 
most-watched 
channel in France , with 
13 million users (160 million worldwide). Subscription video-on-demand is the media of the future, and Netflix dominates the market despite increasingly fierce competition. The company now has a 
market capitalization of nearly $148 billion (€133 billion), placing it among the 40 largest American companies.

Caution: this image of good health may be merely superficial, according to some specialists. This is particularly true of Michael Pachter of Wedbush Securities . A lifelong Netflix subscriber, he describes the company’s stock market valuation as “unjustified” and warns shareholders and customers of the streaming service about “the continued erosion of cash flow over the past decade” and the “migration of content to competing services.” The threats are real for Netflix, which is constantly striving to innovate to stay ahead of the competition . Investments in original content are very expensive, preventing the company from generating substantial profits.

The content war is raging

Indeed, experts believe a real battle for content is currently underway . The arrival of Disney+, WarnerMedia’s announcement of HBO Max’s launch for May 2020, and the debut of Apple TV+ in November have all hurt Netflix. As part of its strategy, Netflix is ​​choosing to invest even more in creating original content and continue to differentiate itself in this way, despite the loss of very popular shows.

Among Netflix’s latest original productions in 2019 were  Martin Scorsese’s The Irishman , Noah Baumbach’s Marriage Story , and Eddie Murphy’s Dolemite Is My Name . That year, the company’s work was even recognized with a Golden Globe nomination, and the hit series Ozark , The Crown , The Kominsky Method , and House of Cards propelled the company to numerous Emmy Award nominations . Netflix believes it has the formula to make a difference again in the next decade.

The French company Criteo, specializing in retargeting, lost nearly 16% of its stock value on Tuesday, January 14, on the NASDAQ, following Google’s announcement that it would eliminate third-party cookies within two years. Yet, since 2017, the company has been seeking to diversify its revenue streams.

Apple had already penalized Criteo in 2017

This is another setback for Criteo, which in 2016 was considered the eleventh most attractive company in France and worldwide. Back in 2017, Apple had already decided to reduce the use of cookies on its search engine, Safari.

At the time, the company announced it had lost $25 million, and its spokesperson bitterly stated, ” Apple doesn’t really promote the Safari browser  .” However, in August 2019, it launched its “Privacy Sandbox” program, which also targets cookies.

On Tuesday, January 14, Google announced it would remove third-party cookies (those that originate not from the browser, but from websites visited by users) within two years from its Chrome browser, used by two-thirds of internet users. This will allow time to find a way to meet the ” needs of users, publishers, and advertisers,  ” reports CNBC.

A record drop that must be stopped as quickly as possible

The reaction was immediate for Criteo. Listed on the NASDAQ since 2013, the company’s stock plummeted to $13.68 before recovering to $15.29, a drop of 15.9% that appears to be holding steady today. The company’s market capitalization has fallen below $1 billion, its lowest level in 52 weeks.

Since the 2017 Apple debacle, Criteo has become aware of its vulnerability due to its dependence on the decisions of the GAFA (Google, Apple, Facebook, Amazon). The company began diversifying its activities to offer marketing solutions to its clients. It was in this context that Criteo acquired Hooklogic for $250 million in 2016. According to BFM Bourse, “these new solutions accounted for 11% of the group’s total revenue.” It remains to be seen whether this will be enough for the company to return to its all-time high of $56 in May 2017.

While some may complain about the price of their internet subscription, it’s worth noting that France is relatively well-off compared to the rest of the world. Indeed, 
a recent study conducted by various analysts and experts at Cable.co.uk ranks France 49th globally in terms of internet subscription prices in 2019.

Unsurprisingly, global broadband deployment is accelerating while prices are decreasing. Networks are being modernized to be faster and, above all, more efficient. Global broadband speeds increased by 20.65% between 2018 and 2019. Another observation is that countries with slower broadband speeds are also the most expensive. Generally speaking, developing countries have the highest cost of connectivity.

France is doing rather well

As mentioned above, France ranks 49th globally. Within Europe, it ranks 11th. For example, Romania offers the cheapest internet plans, at under $8 per month. In France, the average price of an internet subscription is $27.81. Other European countries with low-cost subscriptions include Italy, Germany, Andorra, Monaco, and the United Kingdom.

In Iran, internet access costs nothing.

The ranking of countries with the cheapest subscriptions is as follows:

1. Iran: $0.31
2. Bulgaria: $0.85
3. Nepal: $0.87
4. Kyrgyzstan: $1.26
5. Hungary: $1.66

Here, the connection won’t be the fastest and availability will be quite limited. However, in Bulgaria and Hungary, broadband is the norm and, above all, very fast.

The countries where connectivity is most expensive are:

1. Eritrea: $15,051.29
2. Yemen: $8333.33
3. Laos: $4386.95
4. Tanzania: $1488.11
5. Mauritania: $1333.78

These exorbitant prices can be explained by the political climate, war, or even the lack of use at the national level. The costs are high because they generally entail the construction of a dedicated line.

However, be aware that even though the study shows prices aren’t that high, it only takes into account discounted prices. Indeed, like MaPetiteBox , during sales periods or Black Friday, many websites and operators offer numerous deals and promotions. To say that France has some of the cheapest mobile subscriptions in the world isn’t entirely accurate. However, it is true when compared to other European countries.

In the midst of a global pandemic, 
Snapchat is doing better than ever. Its parent company, Snap Inc, has published 
its third quarter 2020 results and the least that can be said is that all the indicators are green: its number of users is increasing, its market capitalization is breaking records and the revenue generated exceeds all forecasts.

249 million daily users and $678.7 million in revenue generated

In the third quarter of 2020, Snapchat recorded 249 million daily active users , 11 million more than the previous quarter and 20 million more than at the beginning of the year . This spectacular growth, once again exceeding all analyst forecasts, is largely attributed to Generation Z users in the United States, the United Kingdom, and France.

Even more impressive, the company’s revenue is up 52% ​​compared to the same period the previous year  : from July to September 2020, Snap’s revenue reached $678.7 million . Here again, analysts had underestimated the social network’s capabilities, having “only” predicted $557 million in revenue.

Furthermore, following the release of these excellent quarterly results, Snap’s stock price rose by 20% , bringing the company’s market capitalization to over $50 billion. This is a record since its Wall Street debut in 2017 .

What accounts for the success of Snapchat?

Snapchat attributes this resounding success to the redesign of its Android app in 2019, but also to its augmented reality Lenses, which have significantly boosted user engagement on the platform . Evan Spiegel, the company’s CEO, explained that “The adoption of augmented reality has happened faster than we anticipated, and we feel well-positioned to seize the many opportunities before us .” He specifically cited the example of the Anime Lens, which garnered over 3 billion interactions during its first week .

For Jeremi Gorman, Snap’s Chief Commercial Officer, the advertiser boycott of Facebook also contributed to his company’s increased revenue. He explains: “As brands and other organizations used this period of uncertainty as an opportunity to evaluate their advertising spending, we saw many brands seeking to align their marketing efforts with platforms that share their corporate values .” He adds: “This gave us the opportunity to engage with advertisers and agencies in real time to ensure that our existing partners, as well as new prospects, understood our offering in relation to our values . “

The law aimed at securing and regulating the digital space (SREN) was promulgated on May 24, 2024. For Bercy, it ”  
marks a significant step forward in strengthening the protection of citizens, particularly minors, and online businesses  .”

In April, the Assembly voted 
in favor of this bill , with over 64% voting in favor. The SREN law then had to undergo some modifications to bring it into line with European law, mainly stemming from the 
Digital Services Regulation (DSA) and the 
Digital Markets Regulation (DMA) .

What are the impacts of the SREN law on citizens?

First and foremost, the SREN law must protect minors, and more broadly citizens, from online dangers. ”  What is illegal offline must also be illegal online: this simple principle guided the European Union in deploying the DSA and the DMA  ,” commented Marina Ferrari, Secretary of State for Digital Affairs, in a press release.

This includes implementing an age verification system for accessing phonographic websites, and requiring the removal of child pornography within 24 hours. Hosting providers who fail to comply risk a one-year prison sentence and a €250,000 fine.

This new law also includes a ban from social media for individuals convicted of cyberbullying, hate speech, and similar offenses. Judges can impose a sentence ranging from six months to one year of social media access. Internet users who create deepfakes that violate someone’s dignity are now liable to a fine of €75,000 and three years’ imprisonment.

The SREN law will allow the creation of a “digital citizen reserve”. It will allow volunteers to participate in prevention campaigns on online threats, or in raising awareness of responsible digital practices.

The SREN law also addresses digital technology for businesses

Secondly, the SREN law brings its share of new features for businesses.

For cloud services, it now prohibits the lock-in strategies that industry giants used to employ. These strategies primarily involve imposing prohibitive costs, particularly on the volume of data transferred, when a customer leaves one service for an equivalent one from a competitor. Major players in the sector, such as Microsoft Azure, Google Cloud, and AWS, have recently reversed course on these practices.

The government will also create a national network of regulators. This will allow the DGCCRF (Directorate General for Competition Policy, Consumer Affairs and Fraud Control), the DGE (Directorate General for Enterprises), and others to coordinate their regulatory actions. The DGE will head this network.

The SREN law stipulates that the CNIL ( French Data Protection Authority) will be the competent authority for enforcing the DSA (Digital Security Act), supported by the Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF). For the DMA (Digital Access Management Act), the Competition Authority and the Ministry of the Economy will have the authority to investigate potential breaches by access controllers. The DGCCRF may also be involved.

The law aimed at securing and regulating the digital space (SREN) must ”  recreate confidence in the digital economy: move beyond naivety, secure uses and unleash innovation through healthy competition  ,” Bruno Le Maire said in a statement.

South Korean President Yoon Suk-yeol unveiled a new stimulus package for the country’s 
semiconductor industry on Thursday . The package, totaling 26 trillion won (approximately €17.5 billion), comes amid a global race for semiconductors.

Towards the creation of a “mega semiconductor hub”

On May 12, Seoul launched a €6.4 billion investment in this sector. This amount was ultimately included in the €17.5 billion announced earlier. This follows a $470 billion plan already announced in January, as well as announcements from Samsung. Two years ago, the South Korean giant announced a €305 billion investment plan in its home country .

Yoon Suk-yeol explained that this program provides support for ” financing, infrastructure, research and development, as well as support for small and medium-sized enterprises .” Specifically, it includes a 1 trillion won fund for the semiconductor ” ecosystem .” This fund is intended to support small and medium-sized enterprises, as well as fabless companies .

11.5 billion euros will be allocated to a ” new financial support program .” The Korea Development Bank has been announced as being in charge of this program. The objective is to help companies of all sizes invest heavily, for example, to expand their factories.

The government also announced the extension of certain tax breaks. All these new developments point towards the construction of a ” mega semiconductor hub ” near the capital. Once completed, it is expected to be the world’s largest chip manufacturing facility. The government also claims it could create several million jobs.

South Korea wants to remain among the world leaders

Such a complex would represent a strong argument against other countries. Since the Covid-19 pandemic and the resulting chip supply problems, many nations have embarked on a veritable semiconductor race.

This translates into large subsidy programs to attract industry players, as seen in Europe and the United States. In response to Western measures, Asian giants have also retaliated with their own subsidies.

“ Semiconductors are the subject of an all-out war between countries ,” stated Yoon Suk-yeol. The objective for China, Taiwan, and South Korea is to remain competitive. The latter two currently represent the largest centers for memory chip production.

South Korea benefits in particular from the presence of Samsung, the world’s leading memory chip manufacturer, and SK Hynix . Their components are used in smartphones, computers, and connected devices worldwide. Semiconductors are the leading export of this Asian powerhouse.

For Seoul, this new plan also reflects a desire for massive investment in several technologies, such as batteries and screens. Here again, South Korea can count on its leading companies like Samsung .