Tag: business and industry sectors

Social Security will not be able to pay full benefits in 2034 if Congress doesn’t act | CNN Politics

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CNN
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Americans’ Social Security checks will get a lot smaller in 2034 if lawmakers don’t act to address the pending shortfall, according to an annual report released Friday by the Social Security trustees.

That’s because the combined Social Security trust funds – which help support payouts for the elderly, survivors and disabled – are projected to run dry that year. At that time, the funds’ reserves will be depleted, and the program’s continuing income will only cover 80% of benefits owed.

The estimate is one year earlier than the trustees projected last year. About 66 million Americans received Social Security benefits in 2022.

Medicare, meanwhile, is in a more critical financial condition. Its hospital insurance trust fund, known as Medicare Part A, will only be able to pay scheduled benefits in full until 2031, according to its trustees’ annual report, which was also released Friday.

At that time, Medicare, which covered 65 million senior citizens and people with disabilities in 2022, will only be able to cover 89% of total scheduled benefits. Last year, Medicare’s trustees projected that the hospital trust fund’s reserves would be depleted in 2028.

Immensely popular but long troubled, Social Security and Medicare are on shaky financial ground in large part because of the aging of the American population. Fewer workers are paying into the program and supporting the ballooning number of beneficiaries, who are also living longer. Also, health care is becoming increasingly expensive.

Social Security has two trust funds – one for retirees and survivors and another for Americans with disabilities.

Looking at them separately, the Old-Age and Survivors Insurance Trust Fund is projected to run dry in 2033, at which time Social Security could pay only 77% of benefits, primarily using income from payroll taxes. The date is one year earlier than estimated last year.

The Disability Insurance Trust Fund is expected to be able to pay full benefits through at least 2097, the last year of the trustees’ projection period.

Merging the two trust funds would require Congress to act, but the combined projection is often used to show the overall status of the entitlement.

Social Security’s projected long-term health worsened over the past year because the trustees revised downward their expectations for the economy and labor productivity, taking into account updated data on inflation and economic output.

However, the long-term projection for Medicare’s hospital trust fund’s finances improved, mainly due to lowered estimates for health care spending after the height of the Covid-19 pandemic. Also, the program is projected to take in more income because the trustees estimate the number of covered workers and average wages will be higher.

Regardless, the bottom line remains that Medicare is not bringing in enough money to pay the costs it is expected to incur, said Cori Uccello, senior health fellow at the American Academy of Actuaries.

“It’s still not a time to become complacent,” she said. Insolvency “is still less than a decade away.”

The trustees’ reports are the latest warnings to Congress that they will have to deal with the massive entitlement programs’ fiscal problems at some point soon. But addressing their issues is politically challenging. Elected officials are hesitant to suggest any changes that could lead to benefit cuts, even though that could reduce their options in the future.

“With each year that lawmakers do not act, the public has less time to prepare for the changes,” the trustees warned in a fact sheet.

The programs’ shortfalls are back in the spotlight this year as President Joe Biden and House Republicans battle over how to address the nation’s debt ceiling drama and mounting budget deficits. GOP lawmakers want to cut spending in exchange for resolving the borrowing limit, while the White House has said it will not negotiate.

In a memorable moment in his State of the Union address in February, Biden garnered public acknowledgment from congressional Republicans about keeping Social Security and Medicare out of the debt discussions.

But “not touching” Social Security means a hefty cut in benefits within a decade or so.

“Change is inevitable because without changes to current law, both Social Security and Medicare Hospital Insurance would go insolvent, subjecting program participants to sudden and severe payment cuts,” said Charles Blahous, senior research strategist at the Mercatus Center at George Mason University and former Social Security and Medicare trustee. “The outstanding question is whether change will be tolerably gradual, or instead highly damaging because it is too long delayed.”

Though Biden has repeatedly vowed to protect Social Security, his latest budget proposal did not include a plan to stabilize its finances.

However, his proposal did call for extending Medicare’s solvency by 25 years or more by raising taxes on those earning more than $400,000 a year and by allowing the program to negotiate prices for even more drugs.

Spending on the entitlement programs is also projected to soar and exert increased pressure on the federal budget in coming years.

Mandatory spending – driven by Social Security and Medicare – and interest costs are expected to outpace the growth of revenue and the economy, according to a Congressional Budget Office outlook released in mid-February.

This story has been updated with additional information.

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April 12, 2021
Accelerating the EV revolution whether you like it or not | 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
—

The Environmental Protection Agency proposed a plan to remake the way car-obsessed Americans live, using public safety rules to accelerate the shift from internal combustion to electric vehicles.

Just a fraction of the current auto market is EVs, but under standards announced by the EPA Wednesday, up to two-thirds of new vehicles sold in the US would be zero-emission or plug-in hybrid within a decade.

The rules, which are not yet final, would use authority under the Clean Air Act to force auto companies to cut pollution and slash vehicle emissions by more than half. They would phase in with model year 2027 vehicles and be fully implemented by 2032. Read CNN’s full report.

While ambitious, the goals are not unprecedented. They put the federal government on track to catch up with state governments, led by California, that want to stop allowing the sale of internal combustion vehicles by 2035. Read this report from CNN Business about why that’s not as crazy as it seems.

There is a very big legal question mark looming behind California’s action and the EPA’s effort, which still has a public comment and revision period.

The current Supreme Court, dominated by conservative justices, has already shown its scorn for EPA rulemaking and its indifference to addressing climate change. Last year, the court nixed the Biden administration’s plan to curb emissions from existing power plants.

I asked CNN climate reporter Ella Nilsen for her takeaways from the EPA announcement. She offered these key points:

► The standards are ambitious, but doable

If enacted, the newly proposed EPA emissions standards would be one of the Biden administration’s most aggressive climate-change policies yet – moving the US auto market decisively toward electric vehicles in the next decade.

However, multiple experts said the standards are doable, and even lag slightly behind the California standards, which will completely phase out the sale of gas-powered cars by 2035 to usher in electric vehicles. The US is also following countries including the EU and China, which are moving more aggressively toward electric vehicles.

► Charging infrastructure and consumer incentives could be tricky

This new proposed rule won’t happen overnight; it would be gradually phased in over the next decade. At the same time, the US needs to build up a network of electric charging stations in addition to the ubiquitous gas station. Federal officials have also talked about needing to incentivize more Americans to buy EVs by bringing the cost down, with federal tax credits.

However, the new $7,500 tax credits (passed last year by Democrats in the Inflation Reduction Act) are incredibly complex due to manufacturing requirements. The credits could actually shrink the eligible number of cars that qualify (however, leased vehicles have more leeway under the new system). Regardless, it will take years for the EV infrastructure, incentives and supply to fall into place to make electric vehicles available to most Americans.

► This is a big deal for US climate policy

This rule will impact the US economy, but it’s also major climate policy. The proposed EPA tailpipe standards would cut planet-warming pollution from US cars in half. Combined with the agency’s medium and heavy-duty vehicles standard, the proposals could cut nearly 10 billion tons of CO2 emissions by 2055.

Given Americans’ reliance on cars, transportation is a big part of overall US emissions – it accounts for nearly 30% of all greenhouse gas emissions in the US, according to the EPA. Cutting down on tailpipe pollution from gas-powered cars and trucks is a big part of decarbonizing the US.

While the federal government and key states are all in on moving toward EVs, and auto companies are spending big to get competitive in the market, Americans generally are not yet completely embracing the idea.

Just 4% of Americans currently own an EV, and a scant 12% are seriously considering buying one, according to a Gallup poll released Wednesday. Less than half, 43%, say they would consider buying an EV in the future, and a sizable 41% are completely closed off to the idea.

The expected partisan breakdown applies to those figures. Most of the interest in EVs is among Democrats. Most of the staunch opposition is among Republicans. Younger Americans and those making $100,000 and above are also more interested in buying an EV in the future.

There are also key regional disparities. In the West, where states are already working to phase in EVs, only 28% say they would not buy an EV. Compare that to half of Southerners who would not consider buying an EV.

A majority of the country is skeptical that EVs will even have an effect on the climate, according to the poll, with 61% saying EVs will help address climate change only a little or not at all.

In a separate AP-NORC poll released this week, the most-cited major reasons for not wanting to purchase an EV – out of eight offered in the poll – were expense (60% said they cost too much) and convenience (50% said there aren’t enough charging stations available).

Access and affordability should be addressed as inventory increases, writes CNN’s Peter Valdes-Dapena, who covers the auto industry. A decade from now, charging should be quicker and easier, EV ranges should be longer and prices should be at or below the cost of an internal combustion vehicle. Read his full report.

Rather than fighting the rules, as the fossil fuel industry is sure to do, the auto industry is already investing heavily in EVs, responding to tougher regulation already imposed around the world and by California, which moved to ban the sale of new gas and diesel powered vehicles by 2035.

California actually took the lead on pushing for EVs in the years when the Trump administration was dialing back on federal climate policy. Other states, like Oregon, Washington and Minnesota, have tied their standards to California’s.

Valdes-Dapena notes that car companies with loyal customer bases are slowly making the switch. He writes:

Currently, Toyota offers only one electric model in the United States, the BZ4X SUV, but more are planned. Honda, another Japanese brand with a loyal following, offers no EVs currently but the company is gearing up factories in Ohio to build future EV models. Honda expects to offer its first EV next year. General Motors also has a number of EV models coming in the next year or two.

He also notes that GM has pledged to sell only electric passenger vehicles by 2035.

And no, this does not mean internal combustion vehicles will be banned. They will still make up the vast majority of vehicles on the road in a decade even if this rule is finalized and withstands challenges in court. But it would represent a tectonic shift.

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April 12, 2021
Meta opens up its Horizon Worlds VR app to teens for the first time, prompting outcries from US lawmakers | CNN Business

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Washington
CNN
—

Meta is forging ahead with plans to let teenagers onto its virtual reality app, Horizon Worlds, despite objections from lawmakers and civil society groups that the technology could have possible unintended consequences for mental health.

On Tuesday, the social media giant said children as young as 13 in Canada and the United States will gain access to Horizon Worlds for the first time in the coming weeks.

The app, which is already available to users above the age of 17, represents Meta CEO Mark Zuckerberg’s vision for a next-generation internet, where users can physically interact with each other in virtual spaces resembling real life.

“Now, teens will be able to explore immersive worlds, play games like Arena Clash and Giant Mini Paddle Golf, enjoy concerts and live comedy events, connect with others from around the world, and express themselves as they create their own virtual experiences,” Meta said in a blog post.

Zuckerberg has pushed to spend billions developing VR hardware and software, even as Meta has scaled back significantly in other parts of its business. Last year alone, the company spent nearly $16 billion in its Reality Labs segment and warned investors not to expect profitability from that unit anytime soon.

Tuesday’s expansion reflects Meta’s attempt to capture early adopters in a key demographic. But it immediately triggered criticism from lawmakers who had pleaded with the company to postpone its plan.

“Meta is despicably attempting to lure young teens to Horizon Worlds in an attempt to boost its failing platform,” said Connecticut Democratic Sen. Richard Blumenthal, who last month, along with Massachusetts Democratic Sen. Ed Markey, urged Zuckerberg to reconsider letting teens use the app.

Lawmakers have previously raised alarms about the impact of some of Meta’s other products, including Instagram, on younger users.

“Meta has a record of abject failure to protect children and teens, and yet again, this company has chosen to put young users at risk so that it can make more money,” Markey said, accusing Meta of “inviting digital disaster.”

“I’m calling on the company to reverse course and immediately abandon this policy change,” Markey added.

Those calls were echoed earlier this month by dozens of civil society groups who wrote in an open letter that Meta’s VR offerings could expose users to new privacy risks through the collection of biometric and other data; new forms of unfair and deceptive marketing; and abuse or bullying.

Meta said in its announcement that in opening up Horizon Worlds to teens, the company would provide protective guardrails, such as by using default settings to make teenage users’ profiles and activity less visible to other users and by applying content ratings to potentially mature virtual spaces. Meta added that its safety controls were developed with input from parents and online safety experts.

“I hope no one is assuming there is any inclination on our part to simply open the floodgates,” Nick Clegg, Meta’s president of global affairs, told CNN during a recent tech demonstration at the company’s Washington offices. “Clearly we can’t do that. We have to build experiences which are tailored to the unique vulnerabilities of teens.”

Meta’s announcement Tuesday came as other US government officials said they were beefing up scrutiny of social media’s potential effects on mental health.

The Federal Trade Commission is “actively working” on hiring in-house psychologists to address concerns linking social media use to teen mental health harms, said Alvaro Bedoya, an FTC commissioner.

In recent weeks, members of the FTC have been consulting with public health officials and medical professionals to understand the available scientific evidence on the matter, Bedoya told lawmakers on a House Energy and Commerce subcommittee.

“There is evidence that some uses of social media do, in fact, hurt certain groups of teenagers and children,” Bedoya said, though he cautioned that there were important nuances and caveats in the research. “This is not some moral panic. There is a ‘there’ there.”

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April 12, 2021
Twitter’s former CEO has a new app that looks a lot like Twitter | CNN Business

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CNN
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The buzzy new social media app of the moment looks so much like Twitter it’s almost hard to distinguish the two. The profiles, timelines and colors are nearly identical. Even the creator is the same.

But under the hood, Bluesky, developed by Twitter co-founder and former CEO Jack Dorsey, is vastly different.

The app, which launched in a closed beta on iOS in February and on Android this month, runs on a decentralized network which provides users with more control over how the service is run, data is stored, and content is moderated.

In recent days, it’s gained traction among journalists, politicians and celebrities, from Democratic Rep. Alexandria Ocasio-Cortez to model Chrissy Teigan and the 90s band Eve 6.

Here’s what you should know:

Bluesky calls itself “a new social network for microblogging.” With the app, users can post and follow short updates on a timeline, just as they would on Twitter, though with some differences. There are currently no hashtags – a central feature on Twitter – and no direct messages.

Bluesky was formed independently of Twitter while Dorsey was serving as CEO but it was funded by the company until it became an independent organization in February 2022. In a tweet introducing the idea in 2019, Dorsey said it also plans to “build an open community around it, inclusive of companies & organizations, researchers, civil society leaders,” but warned “this isn’t going to happen overnight.”

In a tweet last year, Dorsey said the “biggest issue and my biggest regret is that [Twitter] became a company.” He later clarified that if a service was a protocol it “can’t be owned by a state, or company.”

If the idea of a decentralized social network sounds familiar, it’s likely because of Mastodon, another Twitter alternative that also gained attention late last year.

Like Mastodon, Bluesky appeals to a number of Twitter users who are frustrated with the direction of the platform under owner Elon Musk. In the six months since Musk took over Twitter, he has made a number of controversial changes to its features and policies, including the removal of blue check marks from prominent users.

Some of the same high-profile users now testing out Bluesky have also been openly critical of Musk’s moves at Twitter.

According to data.ai, the company formerly known as App Annie, Bluesky has been downloaded more than 375,000 times from the Apple App Store and the waitlist continues to be flooded with signup requests. On the Google Play Store, Bluesky is described as having been downloaded more than 100,000 times. (By comparison, Twitter reported having more than 200 million monetizable daily active users last year before Musk completed his acquisition.)

Bluesky did not immediately respond to a request for comment.

It’s unclear if Bluesky has staying power or will lose steam as Mastodon did. But Mark Bartholomew, a professor at the University at Buffalo School of Law who writes about online privacy, said the early shift toward Bluesky is a positive one, as it gives social media users more choice over where they spend their time.

“Competition might actually help users find the product features they want, like greater privacy protection, portability, and more significant content moderation,” he said. “Social media platforms have features that users dislike but they still feel like they must accept them to just be in the online space where everyone else is.”

All it took, he said, was Musk taking steps “to sabotage his own platform.”

For now, Bluesky is invite-only as it ramps up support for the implementation of its network. Existing users get one invite code to share with someone for every two weeks they’re on the app. Not surprisingly, the sense of exclusivity has only added to the excitement of joining Bluesky.

As Eve 6 wrote on Twitter: “Bluesky invite codes are the new blue check.”

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April 12, 2021
New York MTA resumes transit alerts on Twitter | CNN Business

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CNN
—

New York’s Metropolitan Transportation Authority said it would resume posting automated transit alerts to Twitter on Thursday after the social media company backtracked on a plan to charge public service accounts for access to the platform.

In a statement Thursday, MTA Acting Chief Customer Officer Shanifah Rieara said Twitter had tried to charge the MTA more than $500,000 a year for access to its platform, but that the MTA refused.

“We’re glad that Twitter has committed to offering free API access for public service providers,” the MTA tweeted, referring to the software interface that enables third parties to create automated posts on Twitter.

In another tweet, it added: “We know that customers missed us, so starting today, we’ll resume posting service alerts on @NYCTSubway, @NYCTBus, @LIRR, and @MetroNorth.”

In recent weeks, Twitter has sought to charge businesses for the ability to access its platform. Its paid plans cost as much as $2.5 million a year for top-tier access. The paywall’s introduction in March prompted widespread warnings by public services of possible disruptions to weather and transit alerts.

Amid the outcry, Twitter changed course on Tuesday and said that verified government accounts would once again be able to post automated tweets for free.

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April 12, 2021
Mr. ChatGPT goes to Washington: OpenAI CEO Sam Altman set to testify before Congress | CNN Business

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CNN
—

OpenAI CEO Sam Altman is set to testify before a Senate Judiciary subcommittee on Tuesday after the viral success of ChatGPT, his company’s chatbot tool, renewed an arms race over artificial intelligence and sparked concerns from some lawmakers about the risks posed by the technology.

“Artificial intelligence urgently needs rules and safeguards to address its immense promise and pitfalls,” said Connecticut Democratic Sen. Richard Blumenthal, who chairs the Senate panel on privacy and technology. “This hearing begins our Subcommittee’s work in overseeing and illuminating AI’s advanced algorithms and powerful technology.”

He added: “I look forward to working with my colleagues as we explore sensible standards and principles to help us navigate this uncharted territory.”

A growing list of tech companies have deployed new AI tools in recent months, with the potential to change how we work, shop and interact with each other. But these same tools have also drawn criticism from some of tech’s biggest names for their potential to disrupt millions of jobs, spread misinformation and perpetuate biases.

Also testifying Tuesday will be Christina Montgomery, IBM’s vice president and chief privacy and trust officer, as well as Gary Marcus, a former New York University professor and a self-described critic of AI “hype.”

Montgomery is expected to urge Congress to adopt a “precision regulation” approach for AI based on specific use cases, and to suggest that lawmakers push companies to test how their systems handle bias and other concerns – and disclose those results.

As the CEO of OpenAI, Altman, perhaps more than any other single figure, has come to serve as a face for a new crop of AI products that can generate images and texts in response to user prompts.

Earlier this month, Altman was one of several tech CEOs to meet with Vice President Kamala Harris and, briefly, President Joe Biden as part of the White House’s efforts to emphasize the importance of ethical and responsible AI development.

In interviews this year, Altman has presented himself as someone who is mindful of the risks posed by AI and even “a little bit scared” of the technology. He and his company have pledged to move forward responsibly.

Others want Altman and OpenAI to move more cautiously. Elon Musk, who helped found OpenAI before breaking from the group, joined dozens of tech leaders, professors and researchers in signing a letter calling for artificial intelligence labs like OpenAI to stop the training of the most powerful AI systems for at least six months, citing “profound risks to society and humanity.”

Altman has said he agreed with parts of the letter. “I think moving with caution and an increasing rigor for safety issues is really important,” Altman said at an event last month. “The letter I don’t think was the optimal way to address it.”

– CNN’s Jennifer Korn contributed to this report.

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April 12, 2021
Chipmakers look to Japan as worries about China grow | CNN Business

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Japanese Prime Minister Fumio Kishida said he welcomed and expected more investment from global chipmakers, after meeting top executives on Thursday before a Group of Seven summit.

China is set to be high on the agenda of the annual G7 leaders meeting that begins on Friday, with the United States increasingly urging its allies to counter the Asian giant’s chip and advanced technology development.

Growing Taiwan and US tensions with China have brought serious challenges to the semiconductor industry. Taiwan is a major producer of chips used in everything from cars and smartphones to fighter jets.

Ensuring diversified, resilient supply chains is a key component of the economic security theme being emphasized by Japan at the talks, White House national security adviser Jake Sullivan told reporters on Air Force One.

Kishida told the executives, including those from Micron Technology Inc

(MU), Intel Corp

(INTC) and Taiwan Semiconductor Manufacturing Co

(TSM) (TSMC), that stabilizing supply chains would be a topic of discussion at the G7 talks in the western city of Hiroshima.

“I am very pleased with your positive attitude towards investment in Japan, and would like the government as a whole to work on further expanding direct investment in Japan and support the semiconductor industry,” Kishida said.

An industry ministry official later said Kishida wanted to foster cooperation to strengthen semiconductor supply chains, while Industry Minister Yasutoshi Nishimura said Japan would use 1.3 trillion yen ($9.63 billion) of the supplementary budget from the last fiscal year to support its chip business.

In particular, Kumamoto prefecture in southwestern Japan is quickly becoming a hotbed for tech investment from companies including TSMC and Fujifilm Holdings Corp

(FUJIF).

Micron said in a statement that it would bring extreme ultraviolet (EUV) technology to Japan, becoming the first semiconductor company to do so, and expected to invest up to 500 billion yen ($3.6 billion) with support from the Japanese government.

Bloomberg News reported the financial incentives would total about 200 billion yen.

An industry ministry official said no decision had been made on whether Japan would give a subsidy to Micron, but that one would be made as soon as possible.

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April 12, 2021
Mark Zuckerberg has thoughts on Apple’s new mixed reality headset | CNN Business

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CNN
—

Days after Apple unveiled its $3,499 mixed reality headset, Meta CEO Mark Zuckerberg appeared to take a jab at the company’s pricing and vision for the product.

“Our device is also about being active and doing things,” Zuckerberg said at an all-hands meeting with Meta employees on Thursday, referencing its Quest VR headset line. “By contrast, every demo that [Apple] showed was a person sitting on a couch by themself. I mean, that could be the vision of the future of computing, but like, it’s not the one that I want.”

He added that Meta’s vision for the metaverse, an immersive virtual world, is “fundamentally social.”

The remarks were first reported by The Verge. A spokesperson for Meta later confirmed their accuracy to CNN.

The Apple Vision Pro headset blends both virtual reality and augmented reality, a technology that overlays virtual images on live video of the real world. It represents Apple’s most ambitious and riskiest new hardware offering in years, and also pits the company against Meta, which has invested billions in VR and currently dominates the headset market.

Last week, Zuckerberg tried to preempt the expected Apple headset announcement by teasing the Meta Quest 3. The new headset promises improved performance, new mixed-reality features and a sleeker, more comfortable design, at a more affordable price ($499).

In his remarks to employees, Zuckerberg repeatedly focused on headset pricing.

“We innovate to make sure that our products are as accessible and affordable to everyone as possible, and that is a core part of what we do,” Zuckerberg told his staff. At another point, Zuckerberg said Apple’s decision to invest in a high-res display and other technology under the hood means “it costs seven times more and now requires so much energy that now you need a battery and a wire attached to it to use it.”

The two companies had a tense relationship even before Apple’s entry into the market. They have competed over news and messaging features, and their CEOs have traded jabs over data privacy and app store policies. Last February, Meta said it expected to take a $10 billion hit in 2022 from Apple’s move to limit how apps like Facebook collect data for targeted ads. But the rivalry now appears poised to reach a new level.

In an early demo with the Vision Pro, CNN was impressed with the company’s unique approach to the device, from how it can present a users’ specific eyeglasses prescription so no frames need to be squeezed into the headset to how a custom processor cuts down on the latency, an issue found in similar products that can result in nausea. Its immersive video capabilities were also stunning.

But the headset is clearly a work in progress. The apps and experiences remain limited; users must stay tethered to a battery pack the size of an iPhone with just two hours of battery life; and the first minutes using the device can be off-putting. Apple also plans to charge far more than other headsets on the market that have previously struggled to gain wide adoption.

Some industry watchers expect Apple, with its impressive hardware track record, will ultimately win out in the market. But in his remarks Thursday, Zuckerberg said Apple’s approach “made me even more excited and in a lot of ways optimistic that what we’re doing matters and is going to succeed.”

The headset wasn’t the only topic Zuckerberg addressed during the hands-on meeting. He also discussed the company’s growing focus on building generative AI into “all of our products,” as Meta and other companies race to adapt to the rise of ChatGPT.

“We’re going to play an important and unique role in bringing these capabilities to billions of people, and in the process it’s going to touch every product we make,” Zuckerberg said in a statement shared with CNN.

Meta recently announced it is bringing AI agents with “unique personas and skill sets” to Messenger and WhatsApp, with eventual plans to roll it out to other apps, products and even the metaverse.

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April 12, 2021
Bernie Sanders launches Senate probe into Amazon warehouse safety conditions | CNN Business

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CNN
—

Sen. Bernie Sanders on Tuesday launched a Senate investigation into working and safety conditions at Amazon warehouses, adding to federal scrutiny on the labor practices of one of the country’s largest employers.

Sanders, the chairman of the Senate committee on health, education, labor and pensions, also unveiled a website where Amazon workers can submit stories about their experiences at the company to help inform the investigation.

“The company’s quest for profits at all costs has led to unsafe physical environments, intense pressure to work at unsustainable rates, and inadequate medical attention for tens of thousands of Amazon workers every year,” Sanders wrote in a letter to Amazon CEO Andy Jassy announcing the probe.

Over the years, some Amazon workers have described the “grueling” experience of long hours racing around warehouses that can be the size of 28 football fields while the company tracks their every move.

Sanders has been one of Amazon’s most vocal and high-profile antagonists. He has sparred with the company over its labor practices and joined a rally of workers looking to unionize one of its facilities. In 2018, following heavy criticism from Sanders, Amazon announced it was raising its minimum wage for US employees to $15 an hour.

In his letter Tuesday, Sanders argued that Amazon warehouses “are uniquely dangerous,” and cited recent citations from the Labor Department’s Occupational Safety and Health Administration against Amazon.

After inspecting three Amazon warehouse facilities, OSHA issued hazard letters in January related to injury risks from workers lifting packages. An Amazon spokesperson at the time said the company “strongly” disagrees with OSHA’s claims and intends to appeal.

Sanders also cited a report from a group of labor unions that said Amazon’s rate of serious injuries at warehouses was more than double the rate at non-Amazon warehouses, as well as “concerning stories from workers around the country about the toll that working at Amazon warehouses takes on their bodies.” (Amazon said it disputes how the data in the labor unions’ report characterizes serious injury rate.)

Steve Kelly, an Amazon spokesperson, told CNN that the company “reviewed the letter and strongly disagree with Senator Sanders’ assertions.”

“We take the safety and health of our employees very seriously,” Kelly, the Amazon spokesperson, said in a statement. “There will always be ways to improve, but we’re proud of the progress we’ve made which includes a 23% reduction in recordable injuries across our U.S. operations since 2019. We’ve invested more than $1 billion into safety initiatives, projects, and programs in the last four years, and we’ll continue investing and inventing in this area because nothing is more important than our employees’ safety.”

Sanders also has an open invitation to come tour one of its facilities, the company said.

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April 12, 2021
Meta officially launches Twitter rival Threads | CNN Business

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CNN
—

Facebook has tried to compete with Twitter in numerous ways over the years, including copying signature Twitter features such as hashtags and trending topics. But now Facebook’s parent company is taking perhaps its biggest swipe at Twitter yet.

Meta on Wednesday officially launched a new app called Threads, which is intended to offer a space for real-time conversations online, a function that has long been Twitter’s core selling point.

The app appears to have many similarities to Twitter, from the layout to the product description. The listing, which first appeared earlier this week as a teaser, emphasizes its potential to build a following and connect with like-minded people.

“The vision for Threads is to create an option and friendly public space for conversation,” Meta CEO Mark Zuckerberg said in a Threads post following the launch. “We hope to take what Instagram does best and create a new experience around text, ideas, and discussing what’s on your mind.”

Zuckerberg said on his verified Threads account that the app passed 2 million sign-ups in the first two hours. Later on Wednesday, he wrote that Threads “passed 5 million sign ups in the first four hours.”

He also responded to posts and shared his thoughts on whether Threads will ever be bigger than Twitter.

“It’ll take some time, but I think there should be a public conversations app with 1 billion+ people on it. Twitter has had the opportunity to do this but hasn’t nailed it,” Zuckerberg wrote on Threads. “Hopefully we will.”

The app’s listing describes it as a place where communities can come together to discuss everything from the topics they care about today to what’s trending.

“Whatever it is you’re interested in, you can follow and connect directly with your favorite creators and others who love the same things — or build a loyal following of your own to share your ideas, opinions and creativity with the world,” it reads.

Meta said messages posted to Threads will have a 500 character limit. The company said it was bringing the app to 100 countries via Apple’s iOS and Android.

After downloading the app, users are asked to link up their Instagram page, customize their profile and follow the same accounts they already follow on Instagram. The look is similar to Twitter with a familiar layout, text-based feed, the ability repost and quote other Thread posts. But it also blends Instagram’s existing aesthetic and offers the ability to share posts from Threads directly to Instagram Stories. Verified Instagram accounts are also automatically verified on Threads. Thread accounts can also be listed as public or private.

The new app joins a growing list of Twitter rivals and could pose the biggest threat to Twitter of the bunch, given Meta’s vast resources and its massive audience.

It also comes amid heightened turmoil at Twitter, which experienced an outage over the weekend, followed by an announcement that the site had imposed temporary limits on how many tweets its users are able to read while using the app.

Twitter owner Elon Musk said these restrictions had been applied “to address extreme levels of data scraping and system manipulation.” Commenting on the launch of Threads Monday, he tweeted: “Thank goodness they’re so sanely run,” parroting reported comments by Meta executives that appeared to take a jab at Musk’s erratic behavior.

Since acquiring Twitter in October, Musk has turned the social media platform on its head, alienating advertisers and some of its highest-profile users. He is now looking for ways to return the platform to growth. Twitter announced Monday that users would soon need to pay for TweetDeck, a tool that allows people to organize and easily monitor the accounts they follow.

Twitter is also attempting to encroach on Meta’s domain. In May, Twitter added encrypted messaging and said calls would follow, developments that could allow the platform to compete with Facebook Messenger and WhatsApp, also owned by Meta.

The escalating rivalry between the two companies only appears to have added to the rivalry between Musk and Meta CEO Mark Zuckerberg.

In response to a tweet last month from a user about Threads, Musk wrote: “I’m sure Earth can’t wait to be exclusively under Zuck’s thumb with no other options.” In a followup tweet, Musk teased the idea of a cage match with Zuckerberg.

Zuckerberg fired back in an Instagram story by posting a screenshot of Musk’s tweet overlaid with the caption: “Send Me Location.”

And after the Threads app debuted, Zuckerberg tweeted an image of two cartoon Spider-Men pointing at each other.

– CNN’s Hanna Ziady contributed to this report.

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April 12, 2021
Indian tech giant Wipro will invest $1 billion in AI, including training all staff | CNN Business

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CNN
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Wipro, one of India’s top providers of software services, wants everyone on staff to know how to use artificial intelligence.

The IT giant announced Wednesday it would spend $1 billion on improving its artificial intelligence capabilities over the next three years, including training its entire staff of 250,000 people across 66 countries in the fast-moving technology.

Wipro

(WIT) said it plans to run workshops “on AI fundamentals and responsible use of AI over the course of the next 12 months, and will continue to provide more customized, ongoing training for employees in AI-specialized roles.”

Wipro is one of India’s biggest outsourcing firms, specializing in IT and consulting services. Its move comes as generative AI, the technology that underpins popular platforms such as ChatGPT, has taken the world by storm.

“With the emergence of generative AI, we expect a fundamental shift up ahead, for all industries,” Wipro CEO Thierry Delaporte said in the statement.

The company added it was launching a software system to integrate AI into every platform and tool used internally and offered to clients, as it capitalizes on its existing efforts in the space that started about a decade ago.

Businesses are increasingly using AI to either bolster or replace tasks usually carried out by humans.

This week, the CEO of an Indian startup made headlines for laying off about 90% of his support staff, saying the company had built an AI-powered chatbot that could process customer service requests faster than employees.

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April 12, 2021
US orders deployment of fighter jets and Navy destroyer to Middle East in response to Iranian activities | CNN Politics

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US Defense Secretary Lloyd Austin has ordered F-35 and F-16 fighter jets deployed to the Middle East, as well as the destroyer USS Thomas Hudner, in response to Iranian activities in the Strait of Hormuz.

“In response to a number of recent alarming events in the Strait of Hormuz, the Secretary of Defense has ordered the deployment of the destroyer USS Thomas Hudner, F-35 fighters and F-16 fighters to the US Central Command Area of Responsibility to defend US interests and safeguard freedom of navigation in the region,” Pentagon deputy press secretary Sabrina Singh said Monday.

The deployments come after two incidents earlier this month in which Iranian Navy ships attempted to seize merchant vessels in the Strait of Hormuz and the Gulf of Oman.

The US Navy intervened in both incidents on July 5. In one instance, in which an Iranian vessel was approaching the Richmond Voyager oil tanker, Iranian personnel opened fire on the tanker and hit the ship near the crew’s living spaces.

“In light of this continuing threat, and in coordination with our partners and allies, the department is increasing our presence and ability to monitor the straight and surrounding waters,” Singh said. “We call upon Iran to immediately cease these destabilizing actions that threaten the free flow of commerce through this strategic waterway of which the world depends on for more than one fifth of the world’s oil supply.”

Last week, a senior defense official said that US air and maritime forces are working together to continue monitoring the waterway, recently starting to fly A-10 attack aircraft over the Strait of Hormuz. The A-10s were deployed in late March.

The US also bolstered its forces in the Middle East in May after destabilizing actions from Iran in the Persian Gulf.

“[The] United States will not allow foreign or regional powers to jeopardize freedom of navigation through the Middle East waterways, including the Strait of Hormuz,” National Security Council Coordinator for Strategic Communications John Kirby said at the time.

He added that there is “simply no justification” for Iranian actions to interfere, harass or attack merchant ships.

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April 12, 2021
Meta’s Threads gets a highly requested ‘following feed’ | CNN Business

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CNN
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Meta on Tuesday launched a highly anticipated “following feed” option in its Threads app as part of its latest batch of updates that could help the new social platform further chip away at Twitter’s position in the market.

The option to see a reverse chronological feed of posts from only accounts a user follows had been one of the most requested features since Threads launched earlier this month. On Tuesday, Meta CEO Mark Zuckerberg replied to a post requesting the feature, saying, “Ask and you shall receive.”

The following feed, one of the central features of the Twitter experience, can be accessed on Threads by double tapping on the app’s home button.

Meta has been steadily rolling out updates to Threads as it tries to keep users engaged in the new app. Threads had a hugely successful launch, topping 100 million sign-ups in its first week, but engagement has declined somewhat since then.

Meta rolled out Threads as a barebones app — missing popular features such as direct messages and a robust search function — to take advantage of a weak moment at rival Twitter. Now, Meta executives have acknowledged that they must continue building out the app to keep the momentum going.

“I’m very optimistic about how the Threads community is coming together,” Meta CEO Mark Zuckerberg said in a post on the platform last week. “Early growth was off the charts, but more importantly 10s of millions of people now come back daily … The focus for the rest of the year is improving the basics and retention.”

Tuesday’s round of updates also includes automatic translation of posts into a users’ default language, the ability for users to see posts they’ve liked in their settings, the option for private users to batch “approve all” follow requests and buttons to filter the activity feed by various types of interactions, according to the company.

The changes followed another batch of updates last week, which included a translation button and the option to subscribe and receive notifications from accounts a user doesn’t follow.

Meta’s ongoing work on Threads comes as the chaos at Twitter continues. Earlier this week, owner Elon Musk began doing away with the platform’s iconic bird branding and replacing it with “X” in hopes of building an “everything” app similar to China’s WeChat.

As Musk rebrands the app, he could face a different threat from Meta: Facebook’s parent company is one of many businesses that already have intellectual property rights to the letter “X.”

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April 12, 2021
Twitter threatens to sue hate-speech watchdog group | CNN Business

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Washington, DC
CNN
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Elon Musk has called himself a free-speech absolutist and has praised “even my worst critics.” But now Twitter has threatened to sue a nonprofit known for sharply criticizing the platform for its handling of hate speech and misinformation.

In a July 20 letter shared publicly Monday, Twitter threatened to sue the Center for Countering Digital Hate, accusing the group of a campaign to hurt Twitter by driving away its advertisers. The CCDH has published numerous reports about various social media companies’ approach to everything from vaccine misinformation to online racism and antisemitism.

The letter by Alex Spiro, an outside attorney representing Twitter owner Musk, alleges that CCDH has made “inflammatory, outrageous, and false or misleading assertions about Twitter and its operations” through its reports, which he argued lack scientific rigor.

To back up his claim, Spiro cited one report in which CCDH staff flagged tweets from 100 Twitter Blue subscribers to the platform as being harmful and found that after several days, the company had not taken action on the vast majority of it. The resulting CCDH report said Twitter had failed to act on “99% of Twitter Blue accounts tweeting hate.”

“This article leaves no doubt that CCDH intends to harm Twitter’s business by driving advertisers away from the platform with incendiary claims,” Spiro wrote to CCDH CEO Imran Ahmed, adding that Twitter is investigating whether it can sue the nonprofit for making false descriptions of the company.

CCDH tweeted Spiro’s July 20 letter along with the organization’s reply to Twitter — which Musk has since rebranded as X — that called the legal threat “ridiculous.”

“These allegations not only have no basis in fact (your letter states none), but they represent a disturbing effort to intimidate those who have the courage to advocate against incitement, hate speech and harmful content online, to conduct research and analysis regarding the drivers of such disinformation, and to publicly release the findings of that research, even when the findings may be critical of certain platforms,” wrote CCDH’s attorneys in a response dated Monday.

Spiro didn’t immediately respond to a request for comment.

Since taking over Twitter, Musk has slashed roughly 80% of the company’s staff, including many working on the platform’s content moderation teams.

In December, Twitter shuttered its Trust and Safety Council comprised of outside experts on online safety, human rights, mental health, suicide prevention and child sexual exploitation.

Reports from multiple groups, including CCDH but also the Anti-Defamation League as well as researchers from Tufts University and the University of Southern California, have pointed to observed increases in hate speech.

Musk claimed that impressions of hate speech — which he described as based on a list of “bad words” — declined in the month following his takeover.

But concerns about the platform’s handling of hateful content under Musk last year have persisted, prompting many brands to pause their advertising on Twitter and contributing to sharp financial losses at the company.

Despite claiming in April that most of Twitter’s advertisers had returned, Musk acknowledged this month that Twitter’s ad revenue remains down by 50% and that the company is still cash-flow negative.

In addition, Twitter has made changes to its platform restricting how third parties can access its data, a move that has drawn widespread criticism from academic researchers who study extremism and other online harms. The changes, which require researchers to pay hefty fees, could inhibit studies on how misinformation, harassment and spam spread on Twitter, experts have said.

Threatening lawsuits has become a favored tactic for Musk as Twitter faces continued pressure. Earlier this month, Twitter threatened to sue Facebook-parent Meta over the launch of its competing app, Threads, accusing the company of copying Twitter’s product through trade secret theft. In May, Spiro sent a letter to Microsoft accusing it of over-using its ability to download tweets from the platform as Musk stepped up his criticism of the Redmond, Wash.-based tech giant as a perceived rival in artificial intelligence technology.

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April 12, 2021
FDA requires medical devices be secured against cyberattacks | CNN Business

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CNN
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The Food and Drug Administration will now require medical devices meet specific cybersecurity guidelines after years of concerns that a growing number of internet-connected products used by hospitals and healthcare providers could be hit by hacks and ransomware attacks.

Under FDA guidance issued this week, all new medical device applicants must now submit a plan on how to “monitor, identify, and address” cybersecurity issues, as well as create a process that provides “reasonable assurance” that the device in question is protected. Applicants will also need to make security updates and patches available on a regular schedule and in critical situations, and provide the FDA with “a software bill of materials,” including any open-source or other software their devices use.

The new security requirements came into effect as part of the sweeping $1.7 trillion federal omnibus spending bill signed by President Joe Biden in December. As part of the new law, the FDA must also update its medical device cybersecurity guidance at least every two years.

A 2022 report released by the FBI cited research finding 53% of digital medical devices and other internet-connected products in hospitals had known critical vulnerabilities. The report listed a number of medical devices that are susceptible to cyber attacks, including insulin pumps, intracardiac defibrillators, mobile cardiac telemetry and pacemakers.

“Malign actors who compromise these devices can direct them to give inaccurate readings, administer drug overdoses, or otherwise endanger patient health,” according to the FBI report.

In 2021, a group of researchers investigating software used in medical devices and machinery used in other industries found over a dozen vulnerabilities that, if exploited by a hacker, could cause critical equipment such as patient monitors to crash.

The FDA has faced criticisms over the years for not doing enough.

A 2018 report from the US Department of Health and Human Services’ Office of the Inspector General said the FDA was not adequately protecting devices from getting hacked.

“FDA had plans and processes for addressing certain medical device problems in the postmarket phase, but its plans and processes were deficient for addressing medical device cybersecurity compromises,” the report said.

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April 12, 2021
Lyft announces new CEO, says co-founders will step aside from management positions | CNN Business

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Lyft announced on Monday that Amazon veteran David Risher will join as chief executive next month, and that co-founders Logan Green and John Zimmer will step down from their management positions at the ride-hailing company.

Green, who is currently the CEO, will be succeeded by Risher effective April 17, the company said in a statement. Zimmer, Lyft’s president, will also step down from his role as of June 30, the company said. Both Green and Zimmer will stay on at Lyft in non-executive roles as chair and vice chair of the Lyft board, respectively. No replacement for Zimmer was named.

The leadership shakeup at the ride-hailing company comes as it has struggled to turn a profit over the years and after its stock has taken a beating in recent months, shedding more than 13% so far in 2023. Late last year the company said it was cutting 13% of its staff, or 700 employees, as part of a major effort to cut costs. Lyft’s stock rose about 4% in after-hours trading Monday on the news.

Lyft

(LYFT) emphasized Risher’s management experience at Amazon

(AMZN) and Microsoft

(MSFT), though he has not worked at either in two decades according to his LinkedIn profile. He was the 37th employee of Amazon

(AMZN), and went on to become the e-commerce giant’s first head of product and head of US retail, according to a statement from Lyft

(LYFT).

Risher has been a member of the Lyft board since July 2021, and has spent the past 13 years working at a nonprofit he co-founded aimed at getting children to read more.

“I am honored to step into the CEO role at such an important moment in the company’s history, and am prepared to take this business to new levels of success,” Risher said in a statement.

Green added in a separate statement that building the company over the past 16 years has “been the adventure of a lifetime.”

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April 12, 2021
Who says romance is dead? Couples are using ChatGPT to write their wedding vows | CNN Business

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When Elyse Nguyen was nearing her wedding date in February and still hadn’t started writing her vows, a friend suggested she try a new source of inspiration: ChatGPT.

The AI chatbot, which was released publicly in late November, can generate compelling written responses to user prompts and offers the promise of helping people get over writer’s block, whether it be for an essay, an email, or an emotional speech.

“At first we inputted the prompt as a joke and the output was pretty cheesy with personal references to me and my husband,” said Nguyen, a financial analyst at Qualcomm. “But the essence of what vows should incorporate was there – our promises to each other and structure.”

She made edits, changed the prompts to add humor and details about her partner’s interests, and added some personal touches. Nguyen ultimately ended up using a good portion of ChatGPT’s suggestions and said her husband was on board with it.

“It helped alleviate some stress because I had no prior experience with wedding vows nor did I know what should be included,” Nguyen said. “Plus, ChatGPT is a genius with alliteration, analogies and metaphors. Having something like, ‘I promise to be your partner in life with the enthusiasm of a golfer’s first hole in one’ in my back pocket was comical.”

Nearly five months after ChatGPT went viral and ignited a new AI arms race in Silicon Valley, more couples are looking to it for help with wedding planning, including writing vows and speeches, drafting religious marriage contracts, and setting up websites for the special day.

Ellen Le recently created some of her wedding website through a new Writer’s Block Assistant tool on online wedding planning service Joy, which was one of the first third-party platforms to incorporate ChatGPT’s technology. (Last month, OpenAI, the company behind ChatGPT, opened up access to the chatbot, paving the way for it to be integrated into numerous apps and services.)

Le, a product manager at a startup, said she used the feature to draft an “about us” page and write directions from San Francisco to her Napa Valley wedding. The Writer’s Block Assistant tool helps users write vows, best man and maid of honor speeches, thank you cards and wedding website “about us” pages. It also lets users highlight personal stories and select the style or tone before pulling it into a speech.

“I started drafting my vows and when I typed in how we met, it produced this very delightful story,” Le said. “Some of it was inaccurate, making up certain details, but it gave me a helping hand and something to react to, rather than just spending 10 hours thinking about how to get started.”

Le said her fiance, who often uses ChatGPT for work, is considering using AI to help with his vows too.

Joy co-founder and CEO Vishal Joshi, who studied artificial intelligence and electrical engineering at NIT Rourkela in India, said the company launched Writer’s Block Assistant in March after it conducted an internal study that found most of its users were somewhat overwhelmed with getting started on writing vows and speeches, and wished they had help. He said the company has already seen thousands of submissions since launching the tool.

“Almost two decades ago, AI enthusiasts like myself and my research peers had only dreamt of mass market adoption we are seeing today, and we know this is just the true beginning,” Joshi said. “Just like smartphones, if applied well, the positive impact of AI on our lives can far outshine the negatives. We’re working on responsibly innovating using AI to advance the wedding and event industry as a whole.”

ChatGPT has sparked concerns in recent months about its potential to perpetuate biases, spread misinformation and upend certain livelihoods. Now, as it finds its way into marriage ceremonies, it could raise more nuanced questions about whether people risk losing something by injecting technology into what is supposed to be a deeply personal and, for many, spiritual moment in life.

Michael Grinn, an anesthesiologist with practices in Miami and New York, was experimenting with ChatGPT when he asked it to produce a traditional Ketubah – a Jewish marriage contract – for his upcoming June wedding.

Grinn and his fiance Kate Gardiner, the founder and CEO of a public relations firm, then requested it make some language changes around gender equality and intimacy. “At the end, we both looked at each other and were like, we can’t disagree with the result,” he said.

Editing took about an hour, but it still shaved hours off what otherwise could have been a lengthy process, he said. Still, Grinn plans to write his own vows. “I want them to be less refined and something no one else helped me with.”

He does, however, plan to use ChatGPT for inspiration for officiating his best man’s wedding. “It mostly comes down to time because I’ve been working so much,” he said, “and this is so efficient.”

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April 12, 2021
‘He’s lost that old twinkle:’ When a young Joe Biden criticized his opponent’s age | CNN Politics

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President Joe Biden, who at 80 has had to confront questions about his age and mental acuity as he is poised to launch a reelection campaign for president, once ran a campaign that sharply attacked his opponent’s age.

In 1972, Biden, then 29 years old and a local Delaware councilman, was running against incumbent Republican Sen. Cale Boggs who was 63 years old, a former two term governor and the state’s senior senator.

“Cale doesn’t want to run, he’s lost that old twinkle in his eye he used to have,” Biden said of Boggs, who had originally wanted to retire but was persuaded to run for reelection.

Biden used his opponent’s age against him in a way that was so explicit, one local reporter dubbed his approach, “Dear old dad.”

Biden was running to become one of the youngest people ever elected to the United States Senate. Now, the president is already the oldest person ever to serve in the office of the presidency, and, if reelected, would leave office at the age of 86. That would best the next oldest president by more than 9 years if he served a full second term.

The president’s age has been “omnipresent” in nearly every conversation, CNN reported in February, though that notion was disputed by a White House spokesperson.

In response to a request for comment, White House spokesman Andrew Bates told CNN that Biden has made “historic progress” that has been “enthusiastically welcomed by younger Americans – including his unprecedented investments in fighting climate change, his first-of-its kind police reform executive order, his actions to support community policing and decriminalize marijuana, and getting more Americans health coverage than ever before.”

In 1972, advertisements for Biden in local newspapers and on the radio hammered home a line, “he understands what’s happening today.” The ads targeted Boggs’ age by bringing up past historical topics from Bogg’s “generation,” like Joseph Stalin ruling Russia, jazz musicians using heroin, the development of the polio vaccine, and taxes from the 1940s.

“Cale Boggs’ generation dreamed of conquering polio, Joe Biden’s generation dreams of conquering heroin,” read one newspaper ad. “To Cale Boggs an unfair tax was the 1948 poll tax. To Joe Biden an unfair tax is the 1972 income tax,” read another.

One radio advertisement targeted Boggs as too focused on past threats from Russia, while ignoring domestic issues like crime.

“One of the biggest differences between Cale Boggs and Joe Biden is the things they worry about,” said the radio ad. “In Cale Boggs’ day when Stalin ruled, Americans had visions of the Russian soldiers in our streets. In Joe Biden’s day, Americans have visions of American criminals in our streets. Joe Biden, he understands what’s happening today.”

The approach drew pushback from Sen. William Roth, a Delaware Republican who Biden would work closely with for the next 30 years, according to the News Journal, and commentary from the media at the time.

Biden eventually won that race with the Associated Press declaring, “Biden stressed age to defeat Boggs.”

As Pulitzer Prize-winning journalist Norm Lockman wrote, “The new campaign strategy, ordered by Biden himself, eases off the strident tub-thumping and finger pointing and uses an approach that says, in effect, “Dear old dad may have been right for his time – and I love him – but things are different now.’”

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April 12, 2021
Kentucky GOP governor primary tests Trump’s influence ahead of 2024 | CNN Politics

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Republicans in Kentucky will decide their nominee for governor on Tuesday in the party’s first major primary since last year’s midterm elections – and one with implications for the 2024 GOP presidential race and the battle for Senate control.

The race will test former President Donald Trump’s influence with GOP voters as he seeks a return to the White House. It will also weigh conservatives’ appetite for cultural fights over transgender rights, tough-on-crime messaging and more.

Three states are hosting governor’s races this year, with Kentucky’s likely to be the most competitive. Democratic Gov. Andy Beshear’s bid for a second term could be an important bellwether for 2024, when his party is defending Senate seats in several other red states – West Virginia, Montana and Ohio.

Beshear, whose father was a two-term governor, defeated Republican Gov. Matt Bevin – an unpopular incumbent who had angered many in his own party – in 2019. He is considered a shoo-in to fend off two challengers in Tuesday’s Democratic primary.

The Republican contest, meanwhile, has been bitter. State Attorney General Daniel Cameron, a former staffer for Senate GOP leader Mitch McConnell, entered the race as the heavy favorite. But Kelly Craft, who served as Trump’s ambassador to Canada and then to the United Nations and is the wife of billionaire coal magnate Joe Craft, has pumped millions of dollars into television ads in the race.

Other GOP candidates include Ryan Quarles, the state agriculture commissioner who has focused his campaign on rural areas of the state, state auditor Mike Harmon, conservative activist Eric Deters and Somerset Mayor Alan Keck.

At the center of the conflict between the two front-runners, Cameron and Craft, is Trump.

The former president endorsed Cameron – who had a prime speaking slot at the 2020 Republican National Convention and has been viewed by many in the GOP as a rising star – in June 2022, even though Craft, who had worked in his administration, was still considering entering the race.

Cameron was elected Kentucky attorney general in 2019 – the first Republican to do so in more than 70 years. If he wins the primary and general elections this year, he would become the first Black Republican elected governor anywhere in the United States. (Two Black Republicans served as acting governor of Louisiana in the 1870s, during the Reconstruction era, but neither were elected.)

Craft has downplayed Trump’s endorsement of Cameron, noting that it came when she was not officially in the race.

Cameron, in a debate earlier this month, shot back by pointing out that Trump attended the Kentucky Derby alongside Craft last year – and, weeks later, endorsed Cameron.

“Kelly, you spent six months telling folks that you were going to get the Donald Trump endorsement. You had him at the Derby last year. And then I got the endorsement. And your team has been scrambling ever since,” Cameron said at the debate hosted by Kentucky Educational Television.

Craft has sought to latch Cameron to McConnell, portraying her opponent as a political insider who, she says in one ad, would “rather follow than lead.” She has also campaigned on a tough-on-crime message and lambasted Cameron for allowing the Justice Department to investigate Louisville’s police department after officers shot and killed Breonna Taylor, prompting national backlash, in 2020. In a TV ad, Craft’s campaign described the Justice Department as “woke” and its probe as a “big government takeover.”

“Letting big government push their diversity agenda while crime skyrocketed, they failed Kentucky’s law enforcement,” the ad’s narrator says.

Craft has also leaned into attacks on transgender rights while slamming what she calls “woke ideology” in schools.

“We will not have transgenders in our school system,” she said Monday during a telephone town hall – a remark that prompted criticism from pro-LGBTQ rights advocates in Kentucky.

For his part, Quarles has sought to win over voters who may be turned off by the ad battles between Cameron and Craft.

“It’s important that Republicans nominate a candidate who can unite the party,” he said in the early May debate. “There’s no problem with having disagreements on issues and policies and voting records, etc. But it’s important that if we’re going to defeat Andy Beshear, we need to nominate somebody who wants to help lift other people up and unite the party after May 16.”

Despite the attack ads and debate-stage barbs, GOP observers say differences on policy matters between the candidates are minimal.

“It’s more of a personality-driven campaign,” said Tyler Glick, a Republican public affairs consultant based in Louisville. “I don’t think it’s been so much fought out over the issues as just positioning their story and their approach.”

While the governor’s race is Kentucky’s marquee contest of 2023, Republican Secretary of State Michael Adams – who has won bipartisan praise for his work with Beshear and the GOP-led legislature to expand mail-in and early voting faces two primary opponents in his bid for a second term.

One opponent, information technology project manager Steve Knipper, who has lost two previous bids for the state’s chief elections role, has claimed without evidence that there was fraud in the 2019 governor’s race won by Beshear. Another contender is Allen Maricle, a former state lawmaker.

Adams said in an interview on KET this month that his rivals were pushing “crazy myths” about election fraud.

“The bottom line is our elections are more secure now than they’ve ever been,” he said.

Like the gubernatorial contest, the winner of the GOP primary for secretary of state only needs a plurality of the vote to land the nomination. Former state Rep. Buddy Wheatley is unopposed for the Democratic nomination.

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April 12, 2021
Reddit sparks outrage after a popular app developer said it wants him to pay $20 million a year for data access | CNN Business

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Washington
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Twitter has been widely criticized for trying to charge transit agencies, third-party app developers and academics for data access to its platform, a move opponents say has forced independent apps to shut down and threatened research on misinformation and hate speech.

Now, a similar revolt against Reddit may be gaining steam after a popular app developer said Wednesday the social media company wants to charge him $20 million a year to continue offering software that lets Reddit users view and interact with the platform.

The newly unveiled pricing of Reddit’s paywall “is close to Twitter pricing” and is not “anything based in reality or remotely reasonable,” said Christian Selig, developer of the Apollo app, in a Reddit post on Wednesday. “It goes without saying that I don’t have that kind of money or would even know how to charge it to a credit card.”

Selig’s post highlights a plan Reddit announced in April to enact a Twitter-like pricing structure for its application programming interface (API) — the software that allows other programs to tap into the company’s data, including posts and comments. Reddit’s API is what allows Reddit content to be displayed to the Apollo app’s 900,000 daily active users.

Reddit’s initial announcement had been light on pricing details, leaving many to speculate about the future of third-party access to Reddit. As details of its pricing plan trickled out on Wednesday, Reddit did not dispute Selig’s account of his conversations with the company, but said Reddit remains “committed to fostering a safe and responsible developer ecosystem.”

“Expansive access to data has impact and costs involved, and in terms of safety and privacy we have an obligation to our communities to be responsible stewards of data,” said Tim Rathschmidt, a company spokesperson, in an email.

Selig’s tweet on the issue has been viewed more than one million times and has led to an outpouring of criticism for Reddit. “Apollo is the only reason I use Reddit,” one fan of the app tweeted. Another said: “Reddit is going full Twitter and it’s a big mistake.” .

Selig had initially expressed cautious optimism about the company’s plan, saying on the day of the announcement that he had spoken to the company and that if the new moves were implemented reasonably, “this could be a positive change.”

But now, a month later, Selig’s optimism has deflated. According to Selig’s post Wednesday, Reddit intends to charge $12,000 for every 50 million attempts to access the company’s data.

“Apollo made 7 billion requests last month,” Selig wrote Wednesdsay, meaning his additional costs simply for running his business as usual would add up to “1.7 million dollars per month, or 20 million US dollars per year.”

“I’d be in the red every month,” he added. Selig didn’t immediately respond to questions from CNN about whether he expects to have to shut down the app.

Selig isn’t the only app developer crying foul. Some developers have said Reddit’s API changes would also block ads in third-party apps, potentially depriving apps of ad revenue and forcing them to try to convert users to subscription business models.

Part of the motivation for Reddit’s plan involves the surging popularity of artificial intelligence.

Large language models such as ChatGPT are developed using training data, which in many cases is sourced from content found across the internet. Reddit should not be expected to provide that data to “some of the largest companies in the world for free,” CEO Steve Huffman told the New York Times in a recent interview.

Meanwhile, Reddit is also widely expected to go public, potentially as soon as this year. The stock offering could add to pressure for Reddit to show revenue growth. Its paid API could help on that front.

But that could come at the expense of independent apps and, as some pointed out, Reddit users who may experience a loss of choices in ways to access the platform. Some predicted that they might soon have to rely on Reddit’s proprietary app, which has been widely panned by users, if they wish to access the site at all.

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April 12, 2021