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  • Cash App founder Bob Lee knew the suspect in his stabbing death, police say | CNN Business

    Cash App founder Bob Lee knew the suspect in his stabbing death, police say | CNN Business

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    CNN
     — 

    San Francisco Police have arrested Nima Momeni in connection to the murder of Cash App founder Bob Lee, San Francisco Police Chief Bill Scott said during a news conference on Thursday.

    Scott described Momeni as a 38-year-old man from Emeryville, California. Scott said Momeni and Lee knew one another, but he didn’t provide further details about their connection.

    California Secretary of State Records indicate that Momeni has been the owner of an IT business, which, according to its website, provides services like technical support.

    Momeni was taken into custody without incident, according to Scott, and taken to the San Francisco County jail where he was booked on one charge of murder.

    Lee was stabbed to death in the Rincon Hill neighborhood of San Francisco early in the morning of April 4th. The moments following the stabbing attack were captured on surveillance video and in a 911 call to authorities, according to a local Bay Area news portal.

    The surveillance footage, reviewed by the online news site The San Francisco Standard, shows Lee walking alone on Main Street, “gripping his side with one hand and his cellphone in the other, leaving a trail of blood behind him.”

    Many in the tech world and beyond responded to news of Lee’s death with an outpouring of shock and grief. Some, including Elon Musk, also said the incident highlighted the fact that “violent crime in SF is horrific.”

    But on Thursday, San Francisco District Attorney Brooke Jenkins criticized Musk’s statement as “reckless and irresponsible.” Jenkins said Musk’s remark “assumed incorrect circumstances” about the death and effectively “spreads misinformation” while police were actively working to solve the case.

    Lee was the former chief technology officer of Square who helped launch Cash App. He later joined MobileCoin, a cryptocurrency and digital payments startup, in 2021 as its chief product officer.

    Josh Goldbard, the CEO MobileCoin, previously told CNN: “Bob was a dynamo, a force of nature. Bob was the genuine article. He was made for the world that is being born right now, he was a child of dreams, and whatever he imagined, no matter how crazy, he made real.”

    Earlier Thursday, San Francisco Board of Supervisors member Matt Dorsey expressed his gratitude to the police department’s homicide detail for “their tireless work to bring Bob Lee’s killer to justice and for their arrest of a suspect this morning.”

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  • Amazon is ‘investing heavily’ in the technology behind ChatGPT | CNN Business

    Amazon is ‘investing heavily’ in the technology behind ChatGPT | CNN Business

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    CNN
     — 

    Amazon wants investors to know it won’t be left behind in the latest Big Tech arms race over artificial intelligence.

    In a letter to shareholders Thursday, Amazon

    (AMZN)
    CEO Andy Jassy said the company is “investing heavily” in large language models (LLMs) and generative AI, the same technology that underpins ChatGPT and other similar AI chatbots.

    “We have been working on our own LLMs for a while now, believe it will transform and improve virtually every customer experience, and will continue to invest substantially in these models across all of our consumer, seller, brand, and creator experiences,” Jassy wrote in his letter to shareholders.

    The remarks, which were part of Jassy’s second annual letter to shareholder since taking over as CEO, hint at the pressure that many tech companies feel to explain how they can tap into the rapidly evolving marketplace for AI products. Since ChatGPT was released to the public in late November, Google

    (GOOG)
    , Facebook

    (FB)
    and Microsoft

    (MSFT)
    have all talked up their growing focus on generative AI technology, which can create compelling essays, stories and visuals in response to user prompts.

    Amazon’s goal, according to Jassy, is to offer less costly machine learning chips so that “small and large companies can afford to train and run their LLMs in production.” Large language models are trained on vast troves of data in order to generate responses to user prompts.

    “Most companies want to use these large language models, but the really good ones take billions of dollars to train and many years, most companies don’t want to go through that,” Jassy said in an interview with CNBC on Thursday morning.

    “What they want to do is they want to work off of a foundational model that’s big and great already, and then have the ability to customize it for their own purposes,” Jassy told CNBC.

    With that in mind, Amazon on Thursday unveiled a new service called Bedrock. It essentially makes foundation models (large models that are pre-trained on vast amounts of data) from AI21 Labs, Anthropic, Stability AI and Amazon accessible to clients via an API, Amazon said in a blog post.

    Jassy told CNBC he thinks Bedrock “will change the game for people.”

    In his letter to shareholders, Jassy also touted AWS’s CodeWhisperer, another AI-powered tool which he said “revolutionizes developer productivity by generating code suggestions in real time.”

    “I could write an entire letter on LLMs and Generative AI as I think they will be that transformative, but I’ll leave that for a future letter,” Jassy wrote. “Let’s just say that LLMs and Generative AI are going to be a big deal for customers, our shareholders, and Amazon.”

    In the letter, Jassy also reflected on leading Amazon through “one of the harder macroeconomic years in recent memory,” as the e-commerce giant cut some 27,000 jobs as part of a major bid to rein in costs in recent months.

    “There were an unusual number of simultaneous challenges this past year,” Jassy said in the letter, before outlining steps Amazon took to rethink certain free shipping options, abandon some of its physical store concepts and significantly reduce overall headcount.

    Amazon disclosed in a securities filing Thursday that Jassy’s pay package last year was valued at some $1.3 million, and that the CEO did not receive any new stock awards in 2022. (When Jassy took over as CEO in 2021, he was awarded a pay package mostly comprised of stock awards that valued his total compensation package at some $212 million.)

    Despite the challenges at Amazon, however, Jassy said in his letter that he finds himself “optimistic and energized by what lies ahead.” Jassy added: “I strongly believe that our best days are in front of us.”

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  • ‘Too good to be true?’ As Shein and Temu take off, so does the scrutiny | CNN Business

    ‘Too good to be true?’ As Shein and Temu take off, so does the scrutiny | CNN Business

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    Hong Kong/New York
    CNN
     — 

    Temu and Shein are taking off in the United States, topping app stores and creating a frenzy with consumers.

    But as the two online shopping platforms become hugely popular, they’re also facing questions over a litany of issues, including how they’re able to sell goods at such strikingly low prices, how transparent they are with the public and how much environmental waste their businesses generate.

    Some of those questions aren’t unique to the two companies: Longtime fast-fashion producers like Zara or H&M

    (HNNMY)
    have faced similar concerns.

    But in recent weeks, Temu and Shein have also faced greater scrutiny over their ties to China, the country where their businesses originated and where they continue to rely on manufacturers.

    Shein was started in China, while Temu was launched by a Chinese company that now bills itself as a multinational firm. They are based in Singapore and Boston, respectively.

    That may matter little to policymakers. As US-China tensions remain high, American legislators have increased attempts to restrict technology linked in any way to foreign entities.

    Earlier this month, a US congressional commission called out Shein and Temu in a report that suggested the companies and others in China were potentially linked to the use of forced labor, exploitation of trade loopholes, product safety hazards or intellectual property theft.

    Both firms have enjoyed major success in the United States, noted Nicholas Kaufman, a policy analyst for the US-China Economic and Security Review Commission. This “has encouraged both established Chinese e-commerce platforms and startups to copy their model, posing risks and challenges to US regulations, laws, and principles of market access,” he wrote.

    Temu and Shein have racked up tens of millions of US users

    Shein: 24.5 millionTemu: 22.8 million

  • Note: US monthly active users, as of April 19
  • Source: Sensor Tower, a market intelligence firm

“Like Shein, Temu’s success raises flags about its business practices,” Kaufman added.

Asked about the report, Shein said in a statement that it “takes visibility across our supply chain seriously.”

“For over a decade, we have been providing customers with on-demand and affordable fashion, beauty, and lifestyle products, lawfully and with full respect for the communities we serve,” a spokesperson said.

Temu did not respond to a request for comment.

Temu and Shein have taken the world’s largest retail market — the United States — by storm.

Temu, which runs a marketplace for virtually everything from home goods to apparel to electronics, was launched by PDD Holdings

(PDD)
last year. It has quickly become the most downloaded app in the United States, and continues to expand its user base.

PDD was founded in China but recently began billing itself as a Cayman Islands company, citing a new corporate registration there. As of a February regulatory filing, PDD’s head office was in Shanghai. Temu says it doesn’t operate in China.

PDD also owns Pinduoduo, a hugely popular Chinese e-commerce giant that was found in a recent CNN investigation to have the ability to spy on its users.

According to cybersecurity researchers, Pinduoduo can circumvent users’ mobile security to see what they’re doing on other apps, read their messages and even change settings.

While Temu has not been implicated, the allegations about its sister company have invited further scrutiny and were cited in the Congress report on Temu this month. PDD did not respond to CNN’s multiple requests for comment on the investigation.

Shein, which was founded by Chinese entrepreneur Chris Xu, has enjoyed similar success with its app over the last few years. The company initially created a cult following for its fast-fashion apparel and has since branched out into other offerings, such as home goods.

Both companies have gained traction stateside by offering extreme bargains to shoppers, many of whom continue to feel the squeeze from historically high inflation.

A shopper at a Shein pop-up store in New York last October. The company initially created a cult following for its fast-fashion apparel, and has since branched out into other offerings.

“The timing is very advantageous,” said Michael Felice, an associate partner in Kearney’s communications, media and technology practice. “You have extreme pressure on the consumer wallet right now.”

While Temu and Shein may appear similar, they have different business models.

Temu operates as an online store, carrying merchandise from independent sellers. Shein, on the other hand, commissions its own goods through manufacturers it teams up with in what is effectively seen as a supersonic version of fast fashion.

For some consumers, the companies’ low prices have raised eyebrows.

“I think transparency and traceability of product is becoming more important,” said Felice. “When you’re starting to see price points that almost could be too good to be true, you start to ask yourself, ‘Is that too good to be true?’”

Felice also said there was a risk of Temu facing resistance from US consumers as a cross-border business.

“There’s a rising sense of nationalism in markets,” he said. “It will be interesting to see which one wins as the dual pressures of inflation and nationalism take hold on American consumers.”

Lawmakers are also getting more hawkish. While both Temu and Shein have taken steps to separate their businesses from links to China, geopolitical tensions are proving hard to shake off.

Last month, a bipartisan group of US senators introduced legislation that would give the government new powers, including a ban on foreign-linked producers of software.

In a fact sheet distributed by lawmakers, Temu’s surge on US app stores was described as an example of how Chinese consumer technology was becoming more popular.

A screenshot from Temu's commercial unveiled during the Super Bowl in February, encouraging consumers to

“From the history of the companies to where their products come from, it’s very hard to say you’re not related to China,” said Sheng Lu, an associate professor of fashion and apparel studies at the University of Delaware.

Similar to TikTok, which faces the prospect of a US ban, Lu believes that Temu and Shein could face data privacy concerns from regulators.

“They’re large, influential and collect data,” he said. “This can make the companies a potential sensitive topic.”

The fashion industry is responsible for 10% of annual global carbon emissions, more than all international flights and maritime shipping combined, according to the United Nations Environment Programme. Around 85% of clothing ends up in landfills or is burned.

Experts say the problem is even worse with fast fashion, defined as the rapid design and production of cheap and low-quality goods that respond to fleeting trends.

These are “disposable fashion companies,” said Maxine Bédat, founder of the New Standard Institute.

“That’s the crux of what they are. This stuff is not meant to last in your wardrobe,” she added. “Their business wouldn’t function if it did.”

Shein argues that its business model enables it to reduce waste and overproduction by producing small batches and only responding with larger production if demand is shown. The company has set a goal of reducing emissions by 25% by 2030, based on 2021 figures.

A model trying on outfits in Temu's Super Bowl ad. The company runs a marketplace for virtually everything, from apparel to home goods to electronics.

Temu, which markets itself more as a general store than a fashion outlet, also said its model limits unsold inventory and waste by better matching demand with supply.

The company told CNN it offsets emissions for every order with “carbon credits which support wildlife conservation efforts” in the United States, though it did not provide details.

Researchers who study textile waste and sustainability in global supply chains say the companies need to go further.

Shein, for example, often uses low-cost fabrics that are hard to recycle. Compared with other fashion retailers, the company has a much lower percentage of products that mention using sustainable or recycled textile materials, said Lu.

There are also concerns about the conditions of workers who make some of the companies’ products.

In February, a bipartisan group of US senators wrote to Shein, pressing the company on its supply chain practices and calling for greater transparency in its supply chain.

“We are concerned that American consumers may be inadvertently purchasing apparel made in part with cotton grown, picked, and processed using forced labor,” the senators said.

The inquiry was made following a Bloomberg report showing lab testing on two occasions last year found that garments shipped to the United States by Shein were made with cotton from Xinjiang. Washington has banned all imports from the Chinese region over concerns of forced labor.

In a statement to CNN, Shein said it was committed to respecting human rights and adhering to laws and regulations in the countries where it operates. A spokesperson said the company had zero tolerance for forced labor, and worked with third parties to audit supplier factories.

To ensure compliance with US laws, Shein requires that suppliers purchase cotton from approved countries, and has built tracing systems to get visibility into the origins of cotton it uses, the spokesperson added.

Temu has not faced such questions, though its sister company received backlash in 2021 over allegations that it overworks its staff. Pinduoduo said at the time that it would provide counseling following the suicide of a worker.

Worker rights at Shein also made headlines in December, when a documentary by UK broadcaster Channel 4 alleged exploitation at two Chinese factories belonging to its suppliers.

The program claimed staff were working 18 hours a day, making the equivalent of pennies on each item. CNN has not independently verified the allegations.

Shein responded to the claims, saying independent audits had refuted most of the allegations. But it conceded that the investigation had showed workers at two of its suppliers were working longer hours than allowed.

The company has since reduced the size of its orders from those producers on an interim basis, and committed $15 million to upgrade hundreds of its partner factories.

Still, the “working conditions of workers making Shein’s products remain a black box,” said Lu, the University of Delaware professor.

“Shein should be more transparent about their factory conditions and workers’ well-being.”

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  • How Elon Musk upended Twitter and his own reputation in 6 months as CEO | CNN Business

    How Elon Musk upended Twitter and his own reputation in 6 months as CEO | CNN Business

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    New York
    CNN
     — 

    When Elon Musk first agreed to buy Twitter, he promised to make the company “better than ever,” with greater transparency, fewer bots, a stronger business and more of what he called “free speech.”

    But six months after Musk took control of Twitter, the future of the company and the platform have never been less certain.

    After acquiring the social media platform for $44 billion in late October, Musk reportedly now values Twitter at around $20 billion — and some who track the company believe even that estimate is likely high. Musk repeatedly warned that Twitter could be at risk of filing for bankruptcy only to claim he had brought it back from the brink thanks to his slashing costs, both by laying off 80% of Twitter’s staff and allegedly by failing to pay some of its bills, according to multiple lawsuits. But it’s not clear just how and when Musk might return Twitter to growth.

    He has antagonized journalists and news outlets that have long been central to the platform’s success, overseen policy changes that threaten to make Twitter less safe or reliable, made the platform less transparent to researchers and scared away many top advertisers. Musk’s primary plan to grow Twitter’s business through an overhauled subscription strategy has resulted in much chaos but only a limited number of actual subscriptions.

    In the process, Musk has also upended his own reputation. Once known by much of the public primarily for his innovative efforts to launch rockets and build electric cars, Musk has instead spent much of the past six months in the headlines for controversial policy and feature changes at Twitter, draconian cuts to staff resulting in frequent service disruptions, and briefly banning several prominent journalists. He’s also tweeted a long list of eccentric remarks from his personal Twitter account, including sharing conspiracy theories and publicly mocking a Twitter worker with a disability who was unsure whether he’d been laid off.

    “If he had done nothing except cut costs, then Twitter would have been okay,” said Leslie Miley, a former Twitter engineering manager who started its product safety and security team and left the company in 2015. He has since held roles at Google, Microsoft and the Obama Foundation. “If you had just let everyone go, treated them with respect, and just let the service run for two years, you probably would be okay.”

    Now, though, Miley said he expects Twitter will “eventually go down the road of MySpace.”

    “It’s going to take a little bit longer … [but] I think Twitter is on its way to irrelevance,” he said, “there is no strategy to acquire or retain users because you are offering them no value.”

    Twitter, which has slashed much of its public relations team under Musk, responded to CNN’s request for comment on this story with the auto-reply from its press email that it has used for weeks: a poop emoji.

    For years, what differentiated Twitter from other social platforms was that it served as a central hub for real-time news. It was a place for ordinary people to read and even engage in conversation with celebrities, business leaders and other newsmakers.

    Many of Musk’s recent moves at the platform threaten to undermine that purpose, not to mention the larger information ecosystem — and it’s not clear the efforts will improve the company’s business.

    “Twitter has never been perfect, it had a lot of problems but it was critical global infrastructure for information that Elon Musk is now systematically, frankly, vandalizing,” former Twitter chair of global news Vivian Schiller told CNN in a recent interview.

    Most recently, Musk removed the legacy blue check marks that verified the identities of prominent users, saying he would instead make the checks available only to those who pay $8 per month for Twitter Blue in the interest of “treating everyone equally.”

    “There shouldn’t be a different standard for celebrities,” Musk said in a tweet earlier this month.

    But the move may make it easier for bad actors to impersonate high-profile people and harder for users to trust the veracity and authenticity of information on the platform. What’s more, Musk then decided to sponsor the blue checks for certain celebrities, including Stephen King and LeBron James, in effect creating exactly the “different standard” for famous users he’d professed to want to avoid.

    Now, Musk says content from verified users will be promoted on the platform, potentially making it harder for users who can’t afford a subscription, or simply don’t want to pay Musk for one, to find an audience on the platform. And the new paid verification system won’t necessarily rid the platform of bots, an issue Musk spent months railing on while trying to get out of the acquisition deal last year, according to Filippo Menczer, a computer science professor at Indiana University and director of the Observatory on Social Media.

    “You can create fake accounts and pay $8 [for a blue check] … so if you are a well-funded bad actor, you can do more damage now than you could before,” Menczer said. “And if you are a reliable source and you’re not well-funded, your information will not be as visible as before.”

    Menczer added that the result could be “less free speech, because you’re drowning out the speech of regular people [with speech] by people who either have the technical skills or the money to manipulate the system.”

    Twitter’s move to charge users of its API will also make it harder for researchers to identify and warn the platform about inauthentic activity, Menczer said, and could disrupt other positive uses of the platform that contributed to its reputation as a news hub. Weather agencies, for example, have warned that the change could make it harder for them to release automated emergency weather alerts.

    Any social network lives or dies based on its ability to retain and attract users — and there’s real reason for Twitter to be worried.

    A number of users, celebrities and media organizations have said they plan to leave Twitter over Musk’s recent policy changes — which often appear to be made on a whim without any real principles.

    NPR, BBC and CBC left Twitter after opposing a controversial new “government-funded media” label that they say was misleading. CenterLink, a global nonprofit that represents hundreds of centers providing services to LGBTQ communities, said it would no longer use Twitter after the platform removed protections for transgender users from its hateful conduct policy. And some high-profile users, such as bullying activist Monica Lewinsky, have threatened to exit the platform over the blue check change, now that they may be at greater risk of impersonation on Twitter.

    There remain few alternatives that offer similar features and scale to Twitter, but a growing list of upstart competitors has emerged since Musk’s takeover. At least one large rival, Facebook-parent Meta, has also confirmed it’s working on a service that sounds a lot like Twitter.

    “Almost everything he said he was going to do, he has screwed up in any number of ways,” Miley said. “If it weren’t so damaging to people and organizations who have depended upon the platform, it would be funny. But it’s not actually funny because it has degraded people’s ability to communicate effectively.”

    All of the chaos has made it difficult to convince advertisers, which previously made up 90% of Twitter’s revenue, to rejoin the platform, after many halted spending in the wake of Musk’s takeover over concerns about increased hate speech, as well as confusion about layoffs and the platform’s future direction.

    Just 43% of Twitter’s top 1,000 advertisers as of September — the month before Musk’s takeover — were still advertising on the platform in April, according to data from market intelligence firm Sensor Tower.

    Musk, for his part, has said that Twitter’s usage has increased since his takeover and that advertisers are steadily returning to the platform. But because he took the company private, he is not obligated to make financial disclosures and followers of the company are left to take him at his word.

    Musk built his reputation by overhauling Tesla, helping to launch a widespread shift away from gas cars to electric vehicles and growing SpaceX into a space transport juggernaut. Now, he appears to be attempting a similar overhaul at Twitter — upending the tried-and-true digital advertising business in favor of a subscription model that no other social media platform has yet been able to find large scale success with.

    “I give him some credit for trying a different business model, I think the business model based on user data is quite abusive,” said Luigi Zingales, professor at the University of Chicago Booth School of Business, although Musk has also attempted to improve Twitter’s targeted advertising business.

    Some other tech companies have followed his lead in some places. Facebook-parent Meta copied Twitter by launching a paid verification option. And Meta, along with a number of other tech companies, have undergone multiple rounds of cost-cutting since last fall. Twitter appears to have given cover for some of these ideas, and other firms’ somewhat more principled approaches made them look better by comparison.

    For Twitter and Musk, the stakes for success are high: Musk’s relationships with banks and investors for future endeavors could hinge in part on his performance at the social media firm, which he took on billions of dollars in debt to purchase. Banks “will sit down and say, what kind of cred does this guy have? Will we find him making these shoot-from-the-lip sort of dictates that, in fact, throw our money down a hole?” said Columbia Business School management professor William Klepper.

    Any change to Musk’s reputation from his time leading Twitter could also ultimately have ripple effects for his broader business empire, causing potential investors, recruits and customers to think twice about betting on one of his companies. Tesla

    (TSLA)
    shareholders recently complained to the company’s board that Musk appears “overcommitted.”

    “His reputation has been diminished significantly with Twitter … and once you lose it, it’s very difficult to recover,” Klepper said. “It would be a good opportunity for [Musk] to rethink whether or not … he’s really leadership material.”

    Musk in December pledged to step down as Twitter CEO after millions of users voted in favor of his exit in a poll he posted to the platform. But for now, he remains “Chief Twit.”

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  • This is Google’s new folding phone | CNN Business

    This is Google’s new folding phone | CNN Business

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    CNN
     — 

    Just a few days ahead of its product launch, Google unveiled an early look at its first foldable smartphone.

    In a video posted to Twitter and YouTube, the company teased a Pixel phone with a vertical hinge that can be opened to reveal a tablet-like display.

    The company will host its annual developer conference at its Mountain View, California, headquarters next week, where it’s rumored to also introduce a Pixel 7a budget phone, its latest Android operating system and advancements to its AI-powered Bard chatbot.

    Although the company didn’t reveal specs for the Pixel Fold, it’s become increasingly common for companies to show off products leading up to their own events in an effort to drum up excitement and set expectations at a time when it’s difficult to surprise onlookers with something unexpected.

    Despite great interest in foldable phones — and a resurgence in 90s-style flip phones among celebrities and TikTok influencers — the foldable market is relatively small; with Samsung dominating the category, followed by others including Motorola/Lenovo, Oppo, and Huawei. According to ABI Research, foldable and flexible displays made up about 0.7% of the smartphone market in 2021, and in 2022 expected to fall just shy of 2%.

    High price points have limited consumer adoption, too. The Pixel Fold is rumored to start at $1,700.

    It’s not surprising Google is dipping its toes into the world of foldables but it’s possible it waited to launch its own version until the technology became more advanced. Early versions of the Samsung Galaxy Z Fold, for example, had issues with the screen and most apps were not well optimized for the design.

    “Google has been working on bringing better user experiences to foldable devices from a software perspective, so when coupled with improvements on the hardware side the market conditions are at a state now where it makes sense for a Pixel Fold,” said Michael Inouye, an analyst at ABI Research.

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  • Why Montana’s TikTok ban may not work | CNN Business

    Why Montana’s TikTok ban may not work | CNN Business

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    CNN
     — 

    Montana has become the first US state to ban TikTok on all devices, even personal ones, triggering renewed doubts about the short-form video app’s future in the country.

    On Wednesday, the state’s governor, Greg Gianforte, signed a bill into law that would fine TikTok and online app stores for making the service available to state residents. It takes effect next year.

    The move goes a step beyond other states that have restricted TikTok from government devices. It also comes at a time when some federal lawmakers are pushing for a nationwide ban.

    But legal and technology experts say there are huge hurdles for Montana, or any state, to enforce such a law. The TikTok ban immediately prompted one lawsuit from TikTok users who allege it violates their First Amendment rights, with more legal challenges expected. Even if the law is allowed to stand, the practicalities of the internet may make it impossible to keep TikTok out of the hands of users.

    Montana’s new law, SB419, makes it illegal for TikTok and app marketplaces to offer the TikTok service within state lines.

    Passed in April, the bill establishes fines of $10,000 per violation per day, where a single violation is defined as “each time that a user accesses TikTok, is offered the ability to access TikTok, or is offered the ability to download TikTok.”

    Individual users themselves would not be on the hook just for accessing TikTok, according to the law.

    If the law survives in the courts, TikTok, and companies such as Apple and Google, could be forced to find ways to restrict TikTok from Montana smartphone users — or face huge penalties.

    But that’s a big if.

    TikTok and other civil society groups warn that the law as written is unconstitutional. There are two main arguments TikTok’s defenders have cited.

    One is that the law violates the First Amendment rights of Montanans, by restricting their ability to access legal speech and by infringing on their own rights to free expression through the app.

    On Thursday, the American Civil Liberties Union accused Gianforte and the state legislature of having “trampled on the free speech of hundreds of thousands of Montanans who use the app to express themselves, gather information, and run their small business in the name of anti-Chinese sentiment.”

    A group of TikTok users echoed that complaint in a lawsuit filed Wednesday evening in the US District Court for the District of Montana, hours after the governor’s signature. “Montana can no more ban its residents from viewing or posting to TikTok than it could ban the Wall Street Journal because of who owns it or the ideas it publishes,” according to the complaint.

    Another allegation is that the law represents an unconstitutional “bill of attainder,” or a law that penalizes somebody absent due process.

    NetChoice, an industry trade group that counts TikTok as a member, said the bill “ignores the U.S. Constitution.”

    “The government may not block our ability to access constitutionally protected speech – whether it is in a newspaper, on a website or via an app,” said Carl Szabo, NetChoice’s general counsel.

    A spokesperson for Gianforte didn’t immediately respond to a request for comment.

    Even if the law survives a legal challenge, experts say its breadth could make it difficult to effectively implement and enforce.

    For one thing, app stores such as Apple’s operate on a country-by-country basis and aren’t able to filter apps at the state level, multiple experts have said.

    As a result, there would be no way for companies such as Apple and Google to practically comply with the law, TechNet, a trade organization that counts those companies as members, told Montana lawmakers at a hearing in March.

    “App stores,” a TechNet witness said at the hearing, “do not have the ability to geofence on a state-by-state basis. It would thus be impossible for our members to prevent the app from being downloaded specifically in the state of Montana.”

    The open-ended nature of the law means enormous unbounded liabilities for TikTok and app store operators.

    “What this really does is create a huge potential liability for both TikTok and the mobile app stores,” said Nicholas Garcia, policy counsel at the consumer advocacy group Public Knowledge. “And what it requires them to do is to figure it out, under threat of Montana coming in and saying, ‘You have not been complying with the law.’”

    It’s unclear how, exactly, Montana officials might determine noncompliance.

    One sure-fire way would be for Montana officials to attempt to download or access TikTok themselves on devices they control, and if they are successful, to sue TikTok or app store companies for those violations, said Alan Rozenshtein, an associate law professor at the University of Minnesota. But that would not identify violations occurring on devices used by the wider public, which is the entire point of the ban, he added.

    “That would require Montana to do surveillance of its own citizens of who’s downloading, and how,” Rozenshtein said. Alternatively, he added, Montana could try to obtain court orders compelling the companies to hand over business information — such as billing data or other non-content information related to users — that could identify them as Montana residents.

    Authorities could also try to subpoena TikTok or the app stores for information on users who have accessed or downloaded TikTok from within the state, but those requests wouldn’t capture the many people who would likely circumvent the ban using more sophisticated methods.

    Virtual private networking (VPN) services would make it trivial for users to get around the restrictions, according to Evan Greer, director of Fight for the Future, a consumer advocacy group. A VPN could make a user in Montana appear as if they are connected to the internet from outside state lines.

    “Any teenage anime fan or British TV aficionado can tell you how to circumvent such a silly ban using a VPN,” said Greer.

    Officials could potentially try to expand their dragnet by asking companies to use additional data they possess on their users to make inferences about who may be accessing TikTok. But depending on the scope of such a request, it could trigger legal objections and privacy concerns — if the additional data is even available.

    Asking internet providers to implement statewide network filters might be another way to enforce the law, said Garcia. But internet providers are not named as a type of entity subject to the TikTok ban.

    “So the only reason they would get involved would be if TikTok or Apple and Google wanted them to,” Garcia said, “and made some business case for why they should go through that effort on a contractual basis or something.”

    Still, said Rozenshtein, just because the Montana law is silent on internet providers does not preclude Montana from potentially seeking a court order forcing broadband companies to filter TikTok traffic at the network level.

    As with the dozens of other states that have imposed some level of TikTok restrictions, Montana’s government has cited the app as a potential privacy and security risk.

    US officials worry that TikTok’s links to China through its parent company, ByteDance, might result in American’s personal information leaking to the Chinese government. That could help China with spying or disinformation campaigns against the United States, according to authorities.

    So far, though, the risk appears to be hypothetical: There is no public evidence to suggest that the Chinese government has actually accessed TikTok’s US user data. And TikTok isn’t the only company that collects large amounts of data, or that might be an attractive target for Chinese espionage.

    TikTok has said it is executing on a plan to store US user data on cloud servers owned by the US tech giant Oracle, and that when the initiative is complete, access to the data will be overseen by US employees.

    More than half of US states have announced some restrictions on TikTok affecting the app on government devices. Montana’s ban marks the beginning of a new phase, however — and the widely expected legal challenges may determine whether other states soon follow suit.

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  • How the technology behind ChatGPT could make mind-reading a reality | CNN Business

    How the technology behind ChatGPT could make mind-reading a reality | CNN Business

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    CNN
     — 

    On a recent Sunday morning, I found myself in a pair of ill-fitting scrubs, lying flat on my back in the claustrophobic confines of an fMRI machine at a research facility in Austin, Texas. “The things I do for television,” I thought.

    Anyone who has had an MRI or fMRI scan will tell you how noisy it is — electric currents swirl creating a powerful magnetic field that produces detailed scans of your brain. On this occasion, however, I could barely hear the loud cranking of the mechanical magnets, I was given a pair of specialized earphones that began playing segments from The Wizard of Oz audiobook.

    Why?

    Neuroscientists at the University of Texas in Austin have figured out a way to translate scans of brain activity into words using the very same artificial intelligence technology that powers the groundbreaking chatbot ChatGPT.

    The breakthrough could revolutionize how people who have lost the ability to speak can communicate. It’s just one pioneering application of AI developed in recent months as the technology continues to advance and looks set to touch every part of our lives and our society.

    “So, we don’t like to use the term mind reading,” Alexander Huth, assistant professor of neuroscience and computer science at the University of Texas at Austin, told me. “We think it conjures up things that we’re actually not capable of.”

    Huth volunteered to be a research subject for this study, spending upward of 20 hours in the confines of an fMRI machine listening to audio clips while the machine snapped detailed pictures of his brain.

    An artificial intelligence model analyzed his brain and the audio he was listening to and, over time, was eventually able to predict the words he was hearing just by watching his brain.

    The researchers used the San Francisco-based startup OpenAI’s first language model, GPT-1, that was developed with a massive database of books and websites. By analyzing all this data, the model learned how sentences are constructed — essentially how humans talk and think.

    The researchers trained the AI to analyze the activity of Huth and other volunteers’ brains while they listened to specific words. Eventually the AI learned enough that it could predict what Huth and others were listening to or watching just by monitoring their brain activity.

    I spent less than a half-hour in the machine and, as expected, the AI wasn’t able to decode that I had been listening to a portion of The Wizard of Oz audiobook that described Dorothy making her way along the yellow brick road.

    Huth listened to the same audio but because the AI model had been trained on his brain it was accurately able to predict parts of the audio he was listening to.

    While the technology is still in its infancy and shows great promise, the limitations might be a source of relief to some. AI can’t easily read our minds, yet.

    “The real potential application of this is in helping people who are unable to communicate,” Huth explained.

    He and other researchers at UT Austin believe the innovative technology could be used in the future by people with “locked-in” syndrome, stroke victims and others whose brains are functioning but are unable to speak.

    “Ours is the first demonstration that we can get this level of accuracy without brain surgery. So we think that this is kind of step one along this road to actually helping people who are unable to speak without them needing to get neurosurgery,” he said.

    While breakthrough medical advances are no doubt good news and potentially life-changing for patients struggling with debilitating ailments, it also raises questions about how the technology could be applied in controversial settings.

    Could it be used to extract a confession from a prisoner? Or to expose our deepest, darkest secrets?

    The short answer, Huth and his colleagues say, is no — not at the moment.

    For starters, brain scans need to occur in an fMRI machine, the AI technology needs to be trained on an individual’s brain for many hours, and, according to the Texas researchers, subjects need to give their consent. If a person actively resists listening to audio or thinks about something else the brain scans will not be a success.

    “We think that everyone’s brain data should be kept private,” said Jerry Tang, the lead author on a paper published earlier this month detailing his team’s findings. “Our brains are kind of one of the final frontiers of our privacy.”

    Tang explained, “obviously there are concerns that brain decoding technology could be used in dangerous ways.” Brain decoding is the term the researchers prefer to use instead of mind reading.

    “I feel like mind reading conjures up this idea of getting at the little thoughts that you don’t want to let slip, little like reactions to things. And I don’t think there’s any suggestion that we can really do that with this kind of approach,” Huth explained. “What we can get is the big ideas that you’re thinking about. The story that somebody is telling you, if you’re trying to tell a story inside your head, we can kind of get at that as well.”

    Last week, the makers of generative AI systems, including OpenAI CEO Sam Altman, descended on Capitol Hill to testify before a Senate committee over lawmakers’ concerns of the risks posed by the powerful technology. Altman warned that the development of AI without guardrails could “cause significant harm to the world” and urged lawmakers to implement regulations to address concerns.

    Echoing the AI warning, Tang told CNN that lawmakers need to take “mental privacy” seriously to protect “brain data” — our thoughts — two of the more dystopian terms I’ve heard in the era of AI.

    While the technology at the moment only works in very limited cases, that might not always be the case.

    “It’s important not to get a false sense of security and think that things will be this way forever,” Tang warned. “Technology can improve and that could change how well we can decode and change whether decoders require a person’s cooperation.”

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  • Fact check: Biden makes 5 false claims about guns, plus some about other subjects | CNN Politics

    Fact check: Biden makes 5 false claims about guns, plus some about other subjects | CNN Politics

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    Washington
    CNN
     — 

    President Joe Biden made false claims about a variety of topics, notably including gun policy, during a series of official speeches and campaign remarks over the last two weeks.

    He made at least five false claims related to guns, a subject on which he has repeatedly been inaccurate during his presidency. He also made a false claim about the extent of his support from environmental groups. And he used incorrect figures about the population of Africa, his own travel history and how much renewable energy Texas uses.

    Here is a fact check of these claims, plus a fact check on a Biden exaggeration about guns. The White House declined to comment on Tuesday.

    Beau Biden and red flag laws

    In a Friday speech at the National Safer Communities Summit in Connecticut, Biden spoke of how a gun control law he signed in 2022 has provided federal funding for states to expand the use of gun control tools like “red flag” laws, which allow the courts to temporarily seize the guns of people who are deemed to be a danger to themselves or others. After mentioning red flag laws, Biden invoked his late son Beau Biden, who served as attorney general of Delaware, and said: “As my son was the first to enforce when he was attorney general.”

    Facts First: Biden’s claim is false. Delaware did not have a red flag law when Beau Biden was state attorney general from 2007 to 2015. The legislation that created Delaware’s red flag program was named the Beau Biden Gun Violence Prevention Act, but it was passed in 2018, three years after Beau Biden died of brain cancer. (In 2013, Beau Biden had pushed for a similar bill, but it was rejected by the state Senate.) The president has previously said, correctly, that a Delaware red flag law was named after his son.

    Delaware was far from the first state to enact a red flag law. Connecticut passed the first such state law in the country in 1999.

    Stabilizing braces

    In the same speech, the president spoke confusingly of his administration’s effort to make it more difficult for Americans to purchase stabilizing braces, devices that are attached to the rear of pistols, most commonly AR-15-style pistols, and make it easier to fire them one-handed.

    “Put a pistol on a brace, and it…turns into a gun,” Biden said. “Makes them where you can have a higher-caliber weapon – a higher-caliber bullet – coming out of that gun. It’s essentially turning it into a short-barreled rifle, which has been a weapon of choice by a number of mass shooters.”

    Facts First: Biden’s claims that a stabilizing brace turns a pistol into a gun and increases the caliber of a gun or bullet are false. A pistol is, obviously, already a gun, and “a pistol brace does not have any effect on the caliber of ammunition that a gun fires or anything about the basic functioning of the gun itself,” said Stephen Gutowski, a CNN contributor who is the founder of the gun policy and politics website The Reload.

    Biden’s assertion that the addition of a stabilizing brace can “essentially” turn a pistol into a short-barreled rifle is subjective; it’s the same argument his administration’s Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has made in support of its attempt to subject the braces to new controls. The administration’s regulatory effort is being challenged in the courts by gun rights advocates.

    Gun manufacturers and lawsuits

    Repeating a claim he made in his 2022 State of the Union address and on other occasions, Biden said at a campaign fundraiser in California on Monday: “The only industry in America you can’t sue is the – is the gun manufacturers.”

    Facts First: Biden’s claim is false, as CNN and other fact-checkers have previously noted. Gun manufacturers are not entirely exempt from being sued, nor are they the only industry with some liability protections. Notably, there are significant liability protections for vaccine manufacturers and, at present, for people and entities involved in making, distributing or administering Covid-19 countermeasures such as vaccines, tests and treatments.

    Under the 2005 Protection of Lawful Commerce in Arms Act, gun manufacturers cannot be held liable for the use of their products in crimes. However, gun manufacturers can still be held liable for (and thus sued for) a range of things, including negligence, breach of contract regarding the purchase of a gun or certain damages from defects in the design of a gun.

    In 2019, the Supreme Court allowed a lawsuit against gun manufacturer Remington Arms Co. to continue. The plaintiffs, a survivor and the families of nine other victims of the Sandy Hook Elementary School mass shooting, wanted to hold the company – which manufactured the semi-automatic rifle that was used in the 2012 killing – partly responsible by targeting the company’s marketing practices, another area where gun manufacturers can be held liable. In 2022, those families reached a $73 million settlement with the company and its four insurers.

    There are also more recent lawsuits against gun manufacturers. For example, the parents of some of the victims and survivors of the 2022 massacre at an elementary school in Uvalde, Texas, have sued over the marketing practices of the company that made the gun used by the killer. Another suit, filed by the government of Buffalo, New York, in December over gun violence in the city, alleges that the actions of several gun manufacturers and distributors have endangered public health and safety. It is unclear how those lawsuits will fare in the courts.

    – Holmes Lybrand contributed to this item.

    The NRA and lawsuits

    At a campaign fundraiser in California on Tuesday, Biden said the National Rifle Association, the prominent gun rights advocacy organization, itself cannot be sued.

    “And the fact that the NRA has such overwhelming power – you know, the NRA is the only outfit in the nation that we cannot sue as an institution,” Biden said. “They got – they – before this – I became president, they passed legislation saying you can’t sue them. Imagine had that been the case with tobacco companies.”

    Facts First: Biden’s claim is false. While gun manufacturers have liability protections, no law was ever passed to forbid lawsuits against the NRA. The NRA has faced a variety of lawsuits in recent years.

    Machine guns

    At the same Tuesday fundraiser in California, Biden said that he taught the Second Amendment in law school, “And guess what? It doesn’t say that you can own any weapon you want. It says there are certain weapons that you just can’t own.” One example Biden cited was this: “You can’t own a machine gun.”

    Facts First: Biden’s claim is false. The Second Amendment does not explicitly say people cannot own certain weapons – and the courts have not interpreted it to forbid machine guns. In fact, with some exceptions, people in more than two-thirds of states are allowed to own and buy fully automatic machine guns as long as those guns were legally registered and possessed prior to May 19, 1986, the day President Ronald Reagan signed a major gun law. There were more than 700,000 legally registered machine guns in the US as of May 2021, according to official federal data.

    Federal law imposes significant national restrictions on machine gun purchases, and the fact that there is a limited pool of pre-May 19, 1986 machine guns means that buying these guns tends to be expensive – regularly into the tens of thousands of dollars. But for Americans in most of the country, Biden’s claim that you simply “can’t” own a machine gun, period, is not true.

    “It’s not easy to obtain a fully automatic machine gun today, I don’t want to give that impression – but it is certainly legal. And it’s always been legal,” Gutowski said in March, when Biden previously made this claim about machine guns.

    California, where Biden made this remark on Tuesday, has strict laws restricting machine guns, but there is a legal process even there to apply for a state permit to possess one.

    The ‘boyfriend loophole’

    In the Friday speech to the National Safer Communities Summit, Biden said “we fought like hell to close the so-called boyfriend loophole” that had allowed people convicted of misdemeanor domestic violence to buy and possess guns if the victim was not someone they were married to, living with or had a child with. Biden then said that now “we finally can say that those convicted of domestic violence abuse against their girlfriend or boyfriend cannot buy a firearm, period.”

    Facts First: Biden’s categorical claim that such offenders now “cannot buy a firearm, period” is an exaggeration, though Biden did sign a law in 2022 that made significant progress in closing the “boyfriend loophole.” That 2022 law added “dating” partners to the list of misdemeanor domestic violence offenders who are generally prohibited from gun purchases – but in a concession demanded by Republicans, the law says these offenders can buy a gun five years after their first conviction or completion of their sentence, whichever comes later, if they do not reoffend in the interim.

    It’s also worth noting that the law’s new restriction on dating partners applies only to people who committed the domestic violence against a someone with whom they were in or “recently” had been in a “continuing” and “serious” romantic or intimate relationship. In other words, it omits people whose offense was against partners from their past or someone they dated casually.

    Marium Durrani, vice president of policy at the National Domestic Violence Hotline, said there are “definitely some gaps” in the law, “so it’s not a blanket end-all be-all,” but she said it is “really a step in the right direction.”

    Biden said at a campaign rally in Philadelphia on Saturday: “Let me just say one thing very seriously. You know, I think this is the first time – and I’ve been around, as I said, a while – in history where, last week, every single environmental organization endorsed me.”

    Facts First: It’s not true that every single environmental organization had endorsed Biden. Four major environmental organizations did endorse him the week prior, the first time they had issued a joint endorsement, but other well-known environmental organizations have not yet endorsed in the presidential election.

    The four groups that endorsed Biden together in mid-June were the Sierra Club, NextGen PAC, and the campaign arms of the League of Conservation Voters and the Natural Resources Defense Council. That is not a complete list of every single environmental group in the country. For example, Environmental Defense Fund, The Nature Conservancy, the National Audubon Society, Earthjustice and Greenpeace, in addition to some lesser-known groups, have not issued presidential endorsements to date.

    Biden’s claim of an endorsement from every environmental group comes amid frustration from some activists over his recent approvals of fossil fuel projects.

    In official speeches last Tuesday and last Wednesday and at a press conference the week prior, Biden claimed that Africa’s population would soon reach 1 billion. “You know, soon – soon, Africa will have 1 billion people,” he said last Wednesday.

    Facts First: This is false. Africa’s population exceeded 1 billion in 2009, according to United Nations figures; it is now more than 1.4 billion. Sub-Saharan Africa alone has a population of more than 1.1 billion.

    At a campaign fundraiser in Connecticut on Friday, Biden spoke about reading recent news articles about the use of renewable energy sources in Texas. He said, “I think it’s 70% of all their energy produced by solar and wind because it is significantly cheaper. Cheaper. Cheaper.”

    Facts First: Biden’s “70%” figure is not close to correct. The federal Energy Information Administration projected late last year that Texas would meet 37% of its electricity demand in 2023 with wind and solar power, up from 30% in 2022.

    Texas has indeed been a leader in renewable energy, particularly wind power, but the state is far from getting more than two-thirds of its energy from wind and solar alone. The organization that provides electricity to 90% of the state has a web page where you can see its current energy mix in real time; when we looked on Wednesday afternoon, during a heat wave, the mix included 15.8% solar, 10.2% wind and 6.6% nuclear, while 67.1% was natural gas or coal and lignite.

    In his Friday speech at the National Safer Communities Summit, Biden made a muddled claim about his past visits to Afghanistan and Iraq – saying that “you know, I spent a lot of time as president, and I spent 30-some times – visits – many more days in Afghanistan and Iraq.”

    Facts First: Biden’s claim that he has visited Afghanistan and Iraq “30-some times” is false – the latest in a long-running series of exaggerations about his visits to the two countries. His presidential campaign said in 2019 that he made 21 visits to these countries, but he has since continued to put the figure in the 30s. And he has not visited either country “as president.”

    At another campaign fundraiser in California on Monday, Biden reprised a familiar claim about his travels with Chinese leader Xi Jinping, who is, like him, a former vice president.

    “It wasn’t appropriate for Barack to be able to spend a lot of time getting to know him, so it was an assignment I was given. And I traveled 17,000 miles with him, usually one on one,” Biden said.

    Facts First: Biden’s “17,000 miles” claim remains false. Biden has not traveled anywhere close to 17,000 miles with Xi, though they have indeed spent lots of time together. This is one of Biden’s most common false claims as president, a figure he has repeated over and over in speeches despite numerous fact checks.

    Washington Post fact-checker Glenn Kessler noted in 2021 that Biden and Xi often did not even travel parallel routes to their gatherings, let alone physically travel together. The only apparent way to get Biden’s mileage past 17,000, Kessler found, is to add the length of Biden’s flight journeys between Washington and Beijing, during which Xi was not with him.

    A White House official told CNN in early 2021 that Biden was adding up his “total travel back and forth” for meetings with Xi. But that is very different than traveling “with him” as Biden keeps saying, especially in the context of his boasts about how well he knows Xi. Biden has had more than enough time to make his language more precise.

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  • Two very different points of view on nuclear energy in the US | CNN Politics

    Two very different points of view on nuclear energy in the US | CNN Politics

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    A version of this story appears in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    Two distinct and unrelated stories this week convinced me it was a good moment to look at nuclear power in the US.

    Those developments, which might give anyone pause about the future of nuclear power, are counteracted by other headlines.

    The opening of a new nuclear plant in Georgia, for example, will bring carbon emission-free energy at exactly the time worldwide temperature records drive home the reality of climate change caused by the burning of fossil fuels.

    Germany made the decision to decommission all of its nuclear plants after disasters like Chernobyl and Fukushima. The last nuclear reactor there was taken offline earlier this year, a decision some might have regretted after Germany’s access to Russian natural gas was threatened by the war in Ukraine.

    Next door, France is the worldwide nuclear leader. Most of its electricity is generated by nuclear power.

    Russia, while it has been ostracized from the world economy in almost every way since its invasion of Ukraine, remains a major player in nuclear power. It enriches and sells uranium through its state-controlled nuclear energy company, Rosatom, which builds and operates plants around the world, according to a March report from CNN’s Clare Sebastian that explains why the West has largely left Russia’s nuclear power industry alone.

    But it is China that is moving the quickest toward nuclear power production, according to the International Atomic Energy Agency.

    As of 2022, about 18% of US electricity is generated by nuclear power, according to the US Energy Information Administration. Most large US nuclear reactors are old – averaging 40 years or more.

    In addition to the Georgia reactor coming online, a new reactor began operating in Tennessee in 2016. But otherwise, the US nuclear power portfolio is old, and much of it is in need of improvement.

    For an idea of the money and corruption that can revolve around energy production, look at the sentencing last week of Ohio’s former House Speaker Larry Householder to 20 years in prison for his involvement in a bribery scheme meant to get the utility company FirstEnergy Corp. a billion-dollar taxpayer bailout for two nuclear plants.

    The bipartisan infrastructure law signed by President Joe Biden in 2021 included a $6 billion program to provide grants to nuclear reactor owners or operators and stave off closing them.

    More than a dozen reactors have closed early in the US over the past decade, according to the Department of Energy. At least one reactor, the Diablo Canyon Power Plant in California, will be kept open after a more than $1 billion grant.

    Nuclear power – and how aggressively the US and other countries should be pursuing it – is a topic that splits scientists as well.

    I talked to one nuclear expert who said the US should be slow and methodical about nuclear power and another who argued there are multiple, public misperceptions about nuclear power that should be corrected.

    The more circumspect voice is Rodney Ewing, a Stanford University professor and expert on nuclear waste who was chairman of a federal review of nuclear waste procedures. I was put in touch with him by the Bulletin of the Atomic Scientists, which aims to “reduce man-made threats to our existence.”

    Despite his decades spent focused on nuclear issues, he said something I found remarkable:

    “I don’t have yet, although I’ve tried for years, a well-formed position for or against nuclear energy,” Ewing said.

    “Too often in the enthusiasm for nuclear energy, a carbon-free source of energy – and in the present situation of the issue of climate change, really a very important existential crisis – it’s easy to say, well, we’ll solve the problems later.”

    He said the issues with nuclear energy – from the potential for disaster to the issue of how to store nuclear waste – should be compared with the potential for renewable alternatives like solar and wind energy.

    The University of Illinois energy professor, David Ruzic – who has a lively YouTube channel, “Illinois EnergyProf,” with multiple videos meant to dispel concerns about nuclear energy – has a much more positive view of nuclear energy’s future.

    Illinois, by the way, generates more nuclear power than any other state. Lawmakers there recently voted to lift a moratorium on new reactor construction that was in place until the federal government can develop a technology for disposing of nuclear waste. That new policy must still be signed by the state’s governor.

    Ruzic argues nuclear waste takes up such little space it should simply be encased in yards of solid concrete and kept at the site of nuclear reactors. The concrete, he argued, can be repaired every 70 years or so as it degrades.

    “Over the 60 years we’ve been doing this commercially, we have learned so much about how to do it extremely safely and very well,” Ruzic said, arguing that the new plant in Georgia would not be affected by an earthquake and tidal wave in the way that Fukushima was, because the new reactor in Georgia is cooled by air in case of an emergency.

    He argued that even in Fukushima, it’s important to note that there were no deaths associated with the radiation due to the failure of the plant, although many thousands were evacuated.

    Any concern you can find to raise about nuclear power, Ruzic has a ready answer. He said no one should worry about the radioactive water Japan plans to release into the ocean from Fukushima because there is a level of radioactivity in everything already.

    “You are adding something trivial and inconsequential, which will be diluted even more,” Ruzic said.

    Even the Russia-Ukraine standoff over the Zaporizhzhia plant does not concern Ruzic; the biggest threat he sees, assuming it is not targeted by bunker-busting bombs, is that the plant ceases making electricity – not that it could turn into another Chernobyl.

    “It’s really unfortunate that it’s in the middle of a war zone. But it’s also really unfortunate that chemical plants or coal plants or other plants are in the middle of a war zone as well,” he argued.

    Both professors brought up the push toward small, modular nuclear technology for which there are numerous companies speculating there will be a major market. That market could grow exponentially if the government decides to put a tax on carbon emissions to account for the harm they cause.

    Ewing argued there is not a clear US national energy strategy, and that means numerous state and federal agencies and private companies are searching, often at odds with each other, for something new. The expense and difficulty of developing nuclear technology will be a roadblock. The new Georgia plant took more than a decade to build and came in over budget.

    Ruzic said that after the initial capital expenditure, the relative low cost of fuel for nuclear plants makes them a good, long-term investment.

    When I came back to Ewing about his comment that he has no clear preference for or against nuclear energy, he said the broad question overlooks too much.

    “The nuclear landscape is, from a technical and social point of view, complicated enough that broad general positions really don’t serve us very well,” he said.

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  • Foxconn pulls out of $19 billion chipmaking project in India | CNN Business

    Foxconn pulls out of $19 billion chipmaking project in India | CNN Business

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    Hong Kong
    CNN
     — 

    Foxconn says it is exiting an ambitious project to help build one of India’s first chip factories.

    The world’s largest contract electronics maker will “no longer move forward” with its $19.4 billion joint venture with Vedanta

    (VEDL)
    , an Indian metals and energy conglomerate, in Asia’s third largest economy, it said Monday.

    The news was seen as a blow to the Indian government’s plans to turn the country into a tech manufacturing powerhouse, even as officials have sought to counter that view.

    In a statement to CNN, Foxconn, a Taiwanese tech giant best known for being one of Apple

    (AAPL)
    ’s top suppliers, said the decision was based on “mutual agreement” and allowed the company “to explore more diverse development opportunities.”

    The joint venture will now be wholly owned by Vedanta.

    In a followup statement Tuesday, Foxconn reaffirmed its commitment to invest in Indian chipmaking, saying it will apply for a government program that subsidizes the cost of setting up semiconductor or electronic display production facilities in the country.

    “Building fabs from scratch in a new geography is a challenge, but Foxconn is committed to invest in India,” the company said, referring to fabrication plants, the technical term for semiconductor factories.

    “There was recognition from both sides that the project was not moving fast enough, there were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project,” it said.

    Since announcing the deal in February 2022, Foxconn said it had worked with Vedanta on plans to set up a semiconductor plant in the country that would support a wider ecosystem for manufacturers.

    It did not provide an investment figure for the facility, but Indian Prime Minister Narendra Modi tweeted in September that the total investment would amount to 1.54 trillion rupees, which was then equivalent to $19.4 billion.

    Foxconn said last year it was actively scouting for locations for the plant and held discussions with “a few state governments.”

    Foxconn CEO Young Liu has in recent months courted Indian partners, having traveled there in February to seek new collaborators.

    The company, which already has factories in the Indian states of Andhra Pradesh and Tamil Nadu, is one of many global tech firms looking for opportunities in the country, particularly as multinationals seek to diversify their supply chains beyond China.

    On Monday, India’s electronics and information technology minister Ashwini Vaishnaw told Indian news outlet and CNN affiliate News18 that both Vedanta and Foxconn are “completely committed to India’s semiconductor mission.”

    Rajeev Chandrasekhar, the country’s minister of state for electronics and IT, also tweeted that the news “changes nothing about” India’s semiconductor manufacturing goals, adding that the decision would still allow “both companies to independently pursue their strategies” in India.

    The project had been hailed as a milestone in India’s campaign to attract more investment in manufacturing, a sector sorely needed to help ease unemployment.

    Prime Minister Modi had framed the project as a significant boost for the economy and jobs.

    Foxconn shares rose 1.3% in Taipei on Tuesday following its announcement, while Vedanta’s shares fell 1.4% in Mumbai. The latter has not responded to a request for comment.

    Other prominent tech companies have moved to expand production in India recently.

    Last month, US chipmaker Micron

    (MICR)
    announced a new factory in the western state of Gujarat, calling it the country’s first semiconductor assembly and test manufacturing facility.

    The venture will see Micron invest up to $825 million, and create “up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years,” according to the company.

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  • Thousands of authors demand payment from AI companies for use of copyrighted works | CNN Business

    Thousands of authors demand payment from AI companies for use of copyrighted works | CNN Business

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    Washington
    CNN
     — 

    Thousands of published authors are requesting payment from tech companies for the use of their copyrighted works in training artificial intelligence tools, marking the latest intellectual property critique to target AI development.

    The list of more than 8,000 authors includes some of the world’s most celebrated writers, including Margaret Atwood, Dan Brown, Michael Chabon, Jonathan Franzen, James Patterson, Jodi Picoult and Philip Pullman, among others.

    In an open letter they signed, posted by the Authors Guild Tuesday, the writers accused AI companies of unfairly profiting from their work.

    “Millions of copyrighted books, articles, essays, and poetry provide the ‘food’ for AI systems, endless meals for which there has been no bill,” the letter said. “You’re spending billions of dollars to develop AI technology. It is only fair that you compensate us for using our writings, without which AI would be banal and extremely limited.”

    Tuesday’s letter was addressed to the CEOs of ChatGPT-maker OpenAI, Facebook-parent Meta, Google, Stability AI, IBM and Microsoft. Most of the companies didn’t immediately respond to a request for comment. Meta, Microsoft and Stability AI declined to comment.

    Much of the tech industry is now working to develop AI tools that can generate compelling images and written work in response to user prompts. These tools are built on large language models, which are trained on vast troves of information online. But recently, there has been growing pressure on tech companies over alleged intellectual property violations with this training process.

    This month, comedian Sarah Silverman and two authors filed a copyright lawsuit against OpenAI and Meta, while a proposed class-action suit accused Google of “stealing everything ever created and shared on the internet by hundreds of millions of Americans,” including copyrighted content. Google has called the lawsuit “baseless,” saying it has been upfront for years that it uses public data to train its algorithms. OpenAI did not previously respond to a request for comment on the suit.

    In addition to demanding compensation “for the past and ongoing use of our works in your generative AI programs,” the thousands of authors who signed the letter this week called on AI companies to seek permission before using the copyrighted material. They also urged the companies to pay writers when their work is featured in the results of generative AI, “whether or not the outputs are infringing under current law.”

    The letter also cites this year’s Supreme Court holding in Warhol v Goldsmith, which found that the late artist Andy Warhol infringed on a photographer’s copyright when he created a series of silk screens based on a photograph of the late singer Prince. The court ruled that Warhol did not sufficiently “transform” the underlying photograph so as to avoid copyright infringement.

    “The high commerciality of your use argues against fair use,” the authors wrote to the AI companies.

    In May, OpenAI CEO Sam Altman appeared to acknowledge more needs to be done to address concerns from creators about how AI systems use their works.

    “We’re trying to work on new models where if an AI system is using your content, or if it’s using your style, you get paid for that,” he said at an event.

    – CNN’s Catherine Thorbecke contributed to this report.

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  • Twitter’s rebrand is the next stage in Elon Musk’s vision for the company. But does anyone want it? | CNN Business

    Twitter’s rebrand is the next stage in Elon Musk’s vision for the company. But does anyone want it? | CNN Business

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    New York
    CNN
     — 

    Elon Musk’s move over the weekend to rebrand Twitter and replace its iconic bird logo with an X is just the latest step in his effort to make over the billionaire’s longtime favorite platform in his image.

    When Musk bought Twitter late last year, he laid out a vision for an “everything” app called X, where users could communicate, shop, consume entertainment and more. Last June — prior to his takeover — Musk told Twitter employees that the platform should be more like China’s WeChat, where he said users “basically live on” the app because “it’s so usable and helpful to daily life.”

    The vision for the rebrand may go all the way back to Musk’s creation of the original X.com in 1999, which Musk hoped would be an all-in-one financial platform and which eventually became PayPal.

    Despite Musk’s longstanding ambitions — and the heightened stakes since he shelled out $44 billion to purchase the social network — ditching Twitter’s branding in service of a future super app is a significant risk.

    Twitter still has a long way to go if Musk wants to build out the kind of services WeChat is known for — everything from ordering groceries and booking yoga classes to paying bills and chatting with friends. And that’s not to mention the financial and competitive challenges the company faces merely existing in its current form, let alone launching a massive expansion. It’s also not clear how much demand there is for such a super app outside of China, given that efforts by other platforms to simply sell users on added shopping features have been slow to take off.

    “While Musk’s vision is to turn ‘X’ into an ‘everything app,’ this takes time, money, and people -— three things that the company no longer has,” Mike Proulx, research director and vice president at Forrester, said in an investor note. By ditching Twitter’s name, Proulx added, Musk “will have singlehandedly wiped out over fifteen years of a brand name that has secured its place in our cultural lexicon,” leaving him to start fresh at a precarious time for the company.

    The X branding has already started taking over Twitter.

    Musk — who bought Twitter with a company called X Corp. — tweeted on Sunday that X.com now redirects to Twitter. (Musk reportedly bought the X.com domain back from PayPal in 2017.)

    On Sunday night, the new stylized X logo was projected onto the company’s headquarters. And by Monday, the bird logo had been replaced by an X on Twitter’s website. Musk even told followers that tweets should instead be called “x’s.”

    On Sunday, CEO Linda Yaccarino seemed to confirm Musk’s vision for the company. “X is the future state of unlimited interactivity — centered in audio, video, messaging, payments/banking — creating a global marketplace for ideas, goods, services, and opportunities,” Yaccarino said in a tweet.

    Walter Isaacson, the legendary tech journalist who has been shadowing Musk to write his biography, tweeted on Sunday that Musk told him even before the Twitter acquisition that he wanted to use the social platform to fulfill his original, decades-old vision for X.com. “I am very excited about finally implementing X.com as it should have been done, using Twitter as an accelerant!” Musk texted Isaacson at 3:30 a.m. one morning last October, just ahead of his takeover, according to the writer.

    On Monday, Musk explained the move in a tweet saying, “The Twitter name made sense when it was just 140 character messages going back and forth – like birds tweeting – but now you can post almost anything, including several hours of video.”

    “In the months to come, we will add comprehensive communications and the ability to conduct your entire financial world,” Musk said. “The Twitter name does not make sense in that context.”

    (The rebrand also seems to be a continuation of a sort of obsession with the letter “X,” which also features in the name of one of Tesla’s cars, the Model X; the name of his rocket company, SpaceX; the name of his new artificial intelligence firm, xAI; and the name of two of his children, X Æ A-Xii and Exa Dark Sideræl.)

    In recent weeks, Twitter has quietly begun its effort to build out a payments business called Twitter Payments — the company was granted money transmitter licenses in four US states since last month, including Arizona and Michigan. Musk has discussed his desire to promote longer videos on Twitter. And he’s tried to shift Twitter’s business model away from advertising by allowing users to pay for verification, a strategy that has resulted in some chaos but only a limited number of actual subscriptions.

    Still, Musk faces obvious hurdles to turning Twitter into a fully-developed super app. Since acquiring Twitter, Musk has fired around 80% of its staff, scared away many of the advertisers that made up its core user base and frustrated many of its users with controversial policy decisions. And now, Twitter faces steep competition from Meta’s rival app Threads, which launched to stunning success, although its usage has petered off slightly in recent days.

    Musk last week also said that Twitter still has negative cash flow because of a 50% decline in ad revenue.

    Even if Musk does add new features to Twitter, many US tech platforms have struggled to succeed in imitating WeChat. Deloitte said in a report published last year that Western markets are unlikely to see “a single, dominant super-app like WeChat in the near term” because the services such apps would aim to bundle together, such as digital payments and ride hailing, already “have too many well-established players.”

    A 2019 effort by the social media giant then known as Facebook to create its own digital currency and payments system that the company said would make it easier to buy things online officially flopped last year following intense regulatory scrutiny. And both TikTok and Instagram have reportedly scaled back their ambitions to incorporate e-commerce onto their platforms after their shopping features failed to gain significant traction with users.

    And until Musk rolls out significant changes to the platform, observers of the company say ditching Twitter’s well-known brand is a risky move.

    “To rebrand without significant new features seems like a desperate attempt for attention,” especially in the wake of Meta’s launch of Threads, said Joshua White, assistant professor of finance at Vanderbilt University. “This is akin to buying Coke and changing the bottle and name without changing the formula — likely a mistake.”

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  • ChatGPT creator pulls AI detection tool due to ‘low rate of accuracy’ | CNN Business

    ChatGPT creator pulls AI detection tool due to ‘low rate of accuracy’ | CNN Business

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    CNN
     — 

    Less than six months after ChatGPT-creator OpenAI unveiled an AI detection tool with the potential to help teachers and other professionals detect AI generated work, the company has pulled the feature.

    OpenAI quietly shut down the tool last week citing a “low rate of accuracy,” according to an update to the original company blog post announcing the feature.

    “We are working to incorporate feedback and are currently researching more effective provenance techniques for text,” the company wrote in the update. OpenAI said it is also committed to helping “users to understand if audio or visual content is AI-generated.”

    The news may renew concerns about whether the companies behind a new crop of generative AI tools are equipped to build safeguards. It also comes as educators prepare for the first full school year with tools like ChatGPT publicly available.

    The sudden rise of ChatGPT quickly raised alarms among some educators late last year over the possibility that it could make it easier than ever for students to cheat on written work. Public schools in New York City and Seattle banned students and teachers from using ChatGPT on the district’s networks and devices. Some educators moved with remarkable speed to rethink their assignments in response to ChatGPT, even as it remained unclear how widespread use of the tool was among students and how harmful it could really be to learning.

    Against that backdrop, OpenAI announced the AI detection tool in February to allow users to check if an essay was written by a human or AI. The feature, which worked on English AI-generated text, was powered by a machine learning system that takes an input and assigns it to several categories. After pasting a body of text such as a school essay into the new tool, it gave one of five possible outcomes, ranging from “likely generated by AI” to “very unlikely.”

    But even on its launch day, OpenAI admitted the tool was “imperfect” and results should be “taken with a grain of salt.”

    “We really don’t recommend taking this tool in isolation because we know that it can be wrong and will be wrong at times – much like using AI for any kind of assessment purposes,” Lama Ahmad, policy research director at OpenAI, told CNN at the time.

    While the tool might provide another reference point, such as comparing past examples of a student’s work and writing style, Ahmad said “teachers need to be really careful in how they include it in academic dishonesty decisions.”

    Although OpenAI may be shelving its tool for now, there are some alternatives on the market.

    Other companies such as Turnitin have also rolled out AI plagiarism detection tools that could help teachers identify when assignments are written by the tool. Meanwhile, Princeton student Edward Tuan introduced a similar AI detection feature, called ZeroGPT.

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  • Supreme Court takes up case concerning Americans with Disabilities Act ‘tester’ of hotels | CNN Politics

    Supreme Court takes up case concerning Americans with Disabilities Act ‘tester’ of hotels | CNN Politics

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    Washington
    CNN
     — 

    The US Supreme Court on Monday agreed to hear a case concerning whether a self-appointed “tester” of the Americans with Disabilities Act has the right to sue hotels over alleged violations of the civil rights law.

    The court was asked to take the case by Acheson Hotels, which owns and operates a hotel in coastal Maine. The company was sued by Deborah Laufer, who they say has filed hundreds of lawsuits against hotels across the country, claiming their websites are not in compliance with ADA rules that require hotels to disclosure information about how accessible they are to individuals with disabilities.

    Though Laufer doesn’t intend to visit the hotels she’s suing, the lawsuits are brought in an effort to force the hotels to update their websites to be in compliance with the law.

    A district court dismissed Laufer’s suit against Acheson Hotels, ruling she lacked the procedural threshold – known as standing – needed to bring the suit. But an appeals court later ruled in her favor.

    Now, the justices will decide next term whether she has the right to act as a “tester” toward hotels she doesn’t intend to visit.

    “Laufer is one of numerous ‘testers’ who have collectively brought thousands of lawsuits under the ADA. A cottage industry has arisen in which uninjured plaintiffs lob ADA lawsuits of questionable merit, while using the threat of attorney’s fees to extract settlement payments,” the hotel told the justices in court papers. “These lawsuits have burdened small businesses, clogged the judicial system, and undermined the Executive Branch’s exclusive authority to enforce federal law.”

    The hotel run by Acheson Hotels has a notice posted to its website that says, “Please Note: Unfortunately, we do not have the capabilities to provide pet-friendly or ADA compliant lodging. We apologize for the inconvenience!”

    Laufer had urged the justices to take the case, with her attorneys arguing in court papers that they should affirm the appeals court ruling.

    “Without civil rights advocates such as this plaintiff, there would be no enforcement of the ADA,” they wrote in part.

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  • These 5 states will be the first to kick residents off Medicaid starting in April | CNN Politics

    These 5 states will be the first to kick residents off Medicaid starting in April | CNN Politics

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    CNN
     — 

    Millions of Americans are at risk of losing their Medicaid coverage in coming months, but residents in Arizona, Arkansas, Idaho, New Hampshire and South Dakota will be the first to bear the brunt of the terminations.

    States have been barred by Congress from winnowing their Medicaid rolls since the Covid-19 pandemic began. That prohibition ends on Saturday, and some states are moving much more swiftly than others to kick off those deemed ineligible for the public health insurance program for low-income Americans.

    That worries advocates, who say speed will result in eligible residents being incorrectly terminated. Also, it could hamper shifting those who no longer qualify to other types of coverage.

    “This is the fable of the tortoise and the hare,” said Joan Alker, executive director of the Georgetown University Center for Children and Families. “Taking time is absolutely going to result in a better outcome for eligible children and families to remain covered. So speed is a big concern.”

    The five states will start cutting off coverage in April, followed by 14 more states in May and 20 additional states plus the District of Columbia in June. All states must complete their redeterminations over the next 14 months.

    Around 15 million people could be dropped from Medicaid, according to various estimates, though several million folks could find coverage elsewhere. Others may still be eligible but could be terminated for procedural reasons, such as not completing renewal forms. Those at risk include at least 6.7 million children, according to a Georgetown analysis.

    Medicaid enrollment has ballooned since March 2020, when lawmakers passed the Families First Coronavirus Response Act, which prevented states from involuntarily removing anyone from coverage. In exchange, Congress boosted states’ federal Medicaid match rates by 6.2 percentage points.

    The provision was initially tied to the national public health emergency, but lawmakers changed that as part of the federal spending bill that passed in December. In addition to being able to start conducting terminations in April, states will receive an enhanced federal match through the rest of this year, though it will phase down over time.

    More than 92 million Americans were enrolled in Medicaid and the Children’s Health Insurance Program in December, up 31% since February 2020, according to the most recent data available from the Centers for Medicare and Medicaid Services.

    Reviewing the eligibility of all those enrollees will be a monumental task for state Medicaid agencies, many of which are also contending with slim staffing. To gear up, they are hiring new employees, temporary workers or contractors or bringing back retirees, according to a recent survey conducted by Georgetown and the Kaiser Family Foundation.

    Most states can automatically renew coverage for at least some of their enrollees using other data, such as state wage information. But agencies must get in touch with others in their Medicaid programs, which proved challenging even prior to the pandemic. Most states are using multiple methods to update enrollees’ contact information, including working with insurers that provide Medicaid coverage to residents.

    If notices sent by mail are returned, states must make good faith attempts to contact enrollees through at least two other methods before cutting them off. And states have to adhere to additional requirements to continue to qualify for the enhanced match. If they don’t, CMS also could suspend their terminations, require they take corrective action or impose monetary penalties.

    Of the roughly 15 million people who could lose Medicaid coverage, about 8.2 million will no longer qualify, according to a Department of Health and Human Services analysis released in August. Some 2.7 million of these folks would qualify for enhanced federal subsidies for Affordable Care Act policies that could bring their monthly premiums to as low as $0.

    Some 6.8 million people, however, will be disenrolled even though they remain eligible.

    Though the federal government has given states more than a year to conduct the eligibility reviews and terminations, some plan to move much more quickly.

    Idaho, which has been monitoring enrollees’ eligibility throughout the pandemic, plans to complete its reevaluations by September, which it touts as one of the fastest timelines in the country.

    Of the nearly 450,000 Idahoans in the program, about 150,000 of them either don’t qualify or haven’t been in touch with the state in the past three years. The state began sending notices in February to those who face termination. People have 60 days to respond before they are removed.

    Those that are not eligible have 60 days from their termination date to enroll in Idaho’s state-based Obamacare exchange, Your Health Idaho. The exchange receives information nightly from the state Medicaid agency about residents who no longer qualify for public coverage but may be eligible for federal subsidies for Affordable Care Act policies.

    The exchange is reaching out to those folks weekly while they still have Medicaid and then every 15 days during the two-month special enrollment period via various methods, including mail, email and text messages, said Pat Kelly, Your Health Idaho’s executive director.

    The exchange works with 900 agents, brokers and enrollment counselors who can help folks sign up for policies. And it plans to start an advertising campaign this month highlighting the hefty subsidies.

    “We have to really help Idahoans know and understand that low-cost options are available, and most importantly, that it’s comprehensive health insurance that they can get for $0 a month,” Kelly said.

    Still, advocates in Idaho are concerned that the state’s push to unwind quickly will result in eligible residents losing coverage.

    Many people are not aware that they once again need to prove that they qualify, and the state agency is understaffed and underfunded, said Hillarie Hagen, health policy associate at Idaho Voices for Children. Renewal letters may not make it to enrollees, and those who need help may not be able to get through to customer service.

    “We are very concerned about families, and particularly children, losing health coverage without their knowledge – that they will find out when they show up to the doctor,” Hagen said.

    Aware that many people don’t know they’ll have to renew their eligibility, Arizona’s Medicaid agency last summer sent text messages and letters and made robocalls to enrollees, asking them to update their contact information. It is also working with community partners, health care providers, pharmacies and insurers. And it’s ramping up another text campaign since the prior one was so successful, said Heidi Capriotti, public information officer for the Arizona Health Care Cost Containment System.

    While the state can automatically redetermine the eligibility of about 75% of its Medicaid participants, it still has to connect with about 670,000 residents who could lose coverage because they are no longer eligible or they haven’t responded to the agency’s requests. The state plans to take 12 months to assess whether its enrollees still qualify.

    South Dakota will start terminating Medicaid enrollees in April, though some low-income adults may become eligible again in July, when the state’s Medicaid expansion program begins.

    Voters approved the broadening of Medicaid to low-income adults at the ballot box in November, over the objections of the Republican governor and legislature.

    Nearly 152,000 residents were enrolled in Medicaid in January, an increase of more than 30% from March 2020, according to the state’s Department of Social Services. But more than 22,000 people appear to be ineligible currently.

    The agency said in an FAQ that it will prioritize reviewing folks who are most likely to be ineligible because they no longer meet a coverage group or their income has increased, among other reasons.

    Those who are not eligible will be disenrolled with 10-days’ notice. If they appear eligible for expansion in July, they’ll receive a notice about it when they are terminated and sent a reminder in June. The agency is encouraging any enrollees who are determined to be ineligible to reapply after Medicaid expansion takes effect.

    But that three-month gap can wreak havoc on low-income residents’ health, said Jen Dreiske, deputy director of South Dakota Voices for Peace, which is working with the state’s immigrants and refugees to inform them of the unwinding. These folks may have to go without their heart medication or their cancer treatment. They may also be afraid to go to the doctor because of the cost.

    “Why can’t we just wait until July 1?” Dreiske said. “Our concern is that people are going to get sick or die because they’re not going to be able to access the health care that they so desperately need.”

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  • Warren Buffett gives reason for surprise sale of stake in Taiwan’s TSMC | CNN Business

    Warren Buffett gives reason for surprise sale of stake in Taiwan’s TSMC | CNN Business

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    Hong Kong
    CNN
     — 

    Warren Buffett says geopolitical tensions were “a consideration” in the decision to sell most of Berkshire Hathaway’s shares in global chip giant TSMC, which is based in Taiwan.

    The 92-year-old “Oracle of Omaha” shed light on the investment call in a Tuesday interview with Japanese news agency Nikkei. He was quoted as sayiing that TSMC was a well-managed company but that Berkshire had “better places” to deploy its capital.

    In February, Berkshire Hathaway

    (BRKA)
    revealed that it had sold 86% of its shares in TSMC, which were purchased for $4.1 billion just months before.

    The quick sale was considered unusual because the billionaire is known for making longer term bets. The size of the purchase suggested that the initial purchase was most likely made personally by Buffett himself, rather than one of his portfolio managers, Reuters reported.

    TSMC is considered a national treasure in Taiwan and supplies semiconductors to tech giants including Apple

    (AAPL)
    and Qualcomm

    (QCOM)
    . It mass produces the most advanced semiconductors in the world, components that are vital to the smooth running of everything from smartphones to washing machines.

    The company is perceived as being so valuable to the global economy, as well as to China — which claims Taiwan as its own territory despite having never controlled it — that it is sometimes even referred to as forming part of a “silicon shield” against a potential military invasion by Beijing.

    TSMC’s presence is seen as providing a strong incentive to the West to defend Taiwan against any attempt by China to take it by force.

    This week, tensions soared across the Taiwan Strait after China simulated “joint precision strikes” on the island during a series of military exercises.

    Beijing launched the drills on Saturday, a day after Taiwan’s President Tsai Ing-wen returned from a 10-day visit to Central America and the United States where she met US House Speaker Kevin McCarthy.

    Chinese officials described the drills as “a serious warning against the Taiwan separatist forces’ collusion with external forces, and a necessary move to defend national sovereignty and territorial integrity.”

    Beijing conducted similar large-scale military exercises around Taiwan last August, after then-US House Speaker Nancy Pelosi visited the island.

    Taiwan and China have been governed separately since the end of a civil war more than seven decades ago, in which the defeated Nationalists fled to Taipei.

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  • FTC chair Lina Khan warns AI could ‘turbocharge’ fraud and scams | CNN Business

    FTC chair Lina Khan warns AI could ‘turbocharge’ fraud and scams | CNN Business

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    Washington
    CNN
     — 

    Artificial intelligence tools such as ChatGPT could lead to a “turbocharging” of consumer harms including fraud and scams, and the US government has substantial authority to crack down on AI-driven consumer harms under existing law, members of the Federal Trade Commission said Tuesday.

    Addressing House lawmakers, FTC chair Lina Khan said the “turbocharging of fraud and scams that could be enabled by these tools are a serious concern.”

    In recent months, a new crop of AI tools have gained attention for their ability to generate convincing emails, stories and essays as well as images, audio and videos. While these tools have potential to change the way people work and create, some have also raised concerns about how they could be use to deceive by impersonating individuals.

    Even as policymakers across the federal government debate how to promote specific AI rules, citing concerns about possible algorithmic discrimination and privacy issues, companies could still face FTC investigations today under a range of statutes that have been on the books for years, Khan and her fellow commissioners said.

    “Throughout the FTC’s history we have had to adapt our enforcement to changing technology,” said FTC Commissioners Rebecca Slaughter. “Our obligation is to do what we’ve always done, which is to apply the tools we have to these changing technologies … [and] not be scared off by this idea that this is a new, revolutionary technology.”

    FTC Commissioner Alvaro Bedoya said companies cannot escape liability simply by claiming that their algorithms are a black box.

    “Our staff has been consistently saying our unfair and deceptive practices authority applies, our civil rights laws, fair credit, Equal Credit Opportunity Act, those apply,” said Bedoya. “There is law, and companies will need to abide by it.”

    The FTC has previously issued extensive public guidance to AI companies, and the agency last month received a request to investigate OpenAI over claims that the company behind ChatGPT has misled consumers about the tool’s capabilities and limitations.

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  • Justice Department challenges Tennessee’s ban on gender-affirming care for minors | CNN Politics

    Justice Department challenges Tennessee’s ban on gender-affirming care for minors | CNN Politics

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    CNN
     — 

    The Justice Department on Wednesday filed a complaint challenging a recently enacted Tennessee bill that prohibits gender-affirming care for minors, saying it “denies necessary medical care to youth based solely on who they are.”

    DOJ argues in its complaint that the legislation violates the Fourteenth Amendment’s Equal Protection Clause by discriminating on the basis of both sex and transgender status and asks the court to issue an immediate order to block the law from taking effect on July 1.

    “SB 1 makes it unlawful to provide or offer to provide certain types of medical care for transgender minors with diagnosed gender dysphoria. SB 1’s blanket ban prohibits potential treatment options that have been recommended by major medical associations for consideration in limited circumstances in accordance with established and comprehensive guidelines and standards of care,” a news release from the department states. “By denying only transgender youth access to these forms of medically necessary care while allowing non-transgender minors access to the same or similar procedures, SB 1 discriminates against transgender youth.”

    In a statement to CNN, Gov. Bill Lee said, “Tennessee is committed to protecting children from permanent, life-altering decisions. This is federal overreach at its worst, and we will work with Attorney General Skrmetti to push back in court and stand up for children.”

    Senate Bill 0001, signed into law by the Republican governor last month, prohibits health care providers “from performing on a minor or administering to a minor a medical procedure if the performance or administration of the procedure is for the purpose of enabling a minor to identify with, or live as, a purported identity inconsistent with the minor’s sex.”

    The legislation specifies that minors who receive care cannot be held liable but lawsuits could be brought against their parents “if the parent of the minor consented to the conduct that constituted the violation on behalf of the minor.” It also grants the attorney general the authority to fine health care professionals who provide the care with a civil penalty of $25,000 per violation.

    Gender-affirming care that began prior to July 1 is not considered a violation “provided that the treating physician must make a written certification that ending the medical procedure would be harmful to the minor,” though access to such care must conclude by March 31, 2024. The legislation expresses concern over long-term outcomes and questions whether minors are capable of making such consequential decisions.

    Major medical associations agree that gender-affirming care is clinically appropriate for children and adults with gender dysphoria, which, according to the American Psychiatric Association, is psychological distress that may result when a person’s gender identity and sex assigned at birth do not align.

    Though the care is highly individualized, some children may decide to use reversible puberty suppression therapy. This part of the process may also include hormone therapy that can lead to gender-affirming physical change. Surgical interventions, however, are not typically done on children and many health care providers do not offer them to minors.

    US Attorney for the Middle District of Tennessee Henry Leventis said in a statement that SB 1 violates the constitutional rights of the state’s “most vulnerable victims.”

    “Left unchallenged, it would prohibit transgender children from receiving health care that their medical providers and their parents have determined to be medically necessary. In doing so, the law seeks to substitute the judgment of trained medical professionals and parents with that of elected officials and codifies discrimination against children who already face far too many obstacles,” Leventis said.

    Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said in the news release that “no person should be denied access to necessary medical care just because of their transgender status.”

    “The right to consider your health and medically-approved treatment options with your family and doctors is a right that everyone should have, including transgender children, who are especially vulnerable to serious risks of depression, anxiety and suicide,” Clarke said.

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  • Nikola to pause truck production after posting bigger quarterly loss | CNN Business

    Nikola to pause truck production after posting bigger quarterly loss | CNN Business

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    CNN
     — 

    Nikola Corp on Tuesday reported a bigger quarterly loss and said it would pause production to streamline the assembly line at its Coolidge, Arizona factory amid sluggish demand for its battery-powered trucks.

    Investors have focused at cash reserves at Nikola and other EV makers amid fears that slowing sales could push the companies to pursue more share sales to raise funds.

    “At the end of May, we plan to pause truck production as we convert the line to accommodate both hydrogen fuel cell and battery electric trucks on the same line and will resume production in July with the first saleable hydrogen fuel cell trucks,” Nikola said.

    Earlier in the day, Fisker Inc cut its full-year production target as the electric-vehicle startup seeks to keep a leash on expenses and reported a smaller first-quarter loss.

    Nikola’s net loss widened to $169.09 million in the quarter, from $152.94 million a year earlier.

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  • Chinese police detain man for allegedly using ChatGPT to spread rumors online | CNN Business

    Chinese police detain man for allegedly using ChatGPT to spread rumors online | CNN Business

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    Hong Kong
    CNN
     — 

    Police in China have detained a man they say used ChatGPT to create fake news and spread it online, in what state media has called the country’s first criminal case related to the AI chatbot.

    According to a statement from police in the northwest province of Gansu, the suspect allegedly used ChatGPT to generate a bogus report about a train crash, which he then posted online for profit. The article received about 15,000 views, the police said in Sunday’s statement.

    ChatGPT, developed by Microsoft

    (MSFT)
    -backed OpenAI, is banned in China, though internet users can use virtual private networks (VPN) to access it.

    Train crashes have been a sensitive issue in China since 2011, when authorities faced pressure to explain why state media had failed to provide timely updates on a bullet train collision in the city of Wenzhou that resulted in 40 deaths.

    Gansu authorities said the suspect, surnamed Hong, was questioned in the city of Dongguan in southern Guangdong province on May 5.

    “Hong used modern technology to fabricate false information, spreading it on the internet, which was widely disseminated,” the Gansu police said in the statement.

    “His behavior amounted to picking quarrels and provoking trouble,” they added, explaining the offense that Hong was accused of committing.

    Police said the arrest was the first in Gansu since China’s Cyberspace Administration enacted new regulations in January to rein in the use of deep fakes. State broadcaster CGTN says it was the country’s first arrest of a person accused of using ChatGPT to fabricate and spread fake news.

    Formally known as deep synthesis, deep fake refers to highly realistic textual and visual content generated by artificial intelligence.

    The new legislation bars users from generating deep fake content on topics already prohibited by existing laws on China’s heavily censored internet. It also outlines take down procedures for content considered false or harmful.

    The arrest also came amid a 100-day campaign launched by the internet branch of the Ministry of Public Security in March to crack down on the spread of internet rumors.

    Since the beginning of the year, Chinese internet giants such as Baidu

    (BIDU)
    and Alibaba

    (BABA)
    have sought to catch up with OpenAI, launching their own versions of the ChatGPT service.

    Baidu unveiled “Wenxin Yiyan” or “ERNIE Bot” in March. Two months later, Alibaba launched “Tongyi Qianwen,” which roughly translates as seeking truth by asking a thousand questions.

    In draft guidelines issued last month to solicit public feedback, China’s cyberspace regulator said generative AI services would be required to undergo security reviews before they can operate.

    Service providers will also be required to verify users’ real identities, as well as providing details about the scale and type of data they use, their basic algorithms and other technical information.

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