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Tag: Business

  • FDA requires medical devices be secured against cyberattacks | CNN Business

    FDA requires medical devices be secured against cyberattacks | CNN Business

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    New York
    CNN
     — 

    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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  • How Uber left Lyft in the dust | CNN Business

    How Uber left Lyft in the dust | CNN Business

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    CNN
     — 

    For years, Lyft positioned itself as the “nice guy” in the ride-hailing industry. It let rival Uber do most of the dirty work fighting regulators and the taxi industry to create a path for a new crop of companies to offer rides to customers through an app.

    In the process, Lyft cultivated a feel-good brand – but Uber dominated the market. For a brief moment in 2017, however, it looked like the balance of power might shift, as Uber was rocked by a seemingly endless series of PR crises that culminated with its founder and CEO Travis Kalanick stepping down.

    Six years later, however, Lyft’s position is arguably more precarious than it has ever been. Uber now has 74% of the US rideshare market, up from 62% in 2020, according to market research firm YipitData, while Lyft’s market share slipped to 26% from 38% during that same period. Meanwhile, Lyft stock has plunged nearly 90% since it went public in 2019.

    In a nod to those challenges, Lyft announced Monday that its two cofounders, Logan Green and John Zimmer, would step back from their management roles and the company would bring in Amazon veteran and Lyft board member David Risher to take the helm of Lyft as CEO.

    In its announcement, Lyft framed the leadership change as a straightforward succession plan. “All founders eventually find the right moment to step back and the right leaders to take their company forward,” Green said in a statement. “As a member of the board, he knows both the challenges and opportunities ahead.”

    For Lyft, the current challenges are immense. While Uber diversified its business beyond ride-hailing by delivering meals and grocery items, Lyft never did. That arguably hurt the company earlier in the pandemic when fewer customers were traveling but more were ordering items online. Late last year, Lyft said it was cutting 13% of its staff, or 700 employees, as part of a major effort to cut costs.

    At the same time, Lyft now faces an Uber that is run by a seasoned executive, Expedia veteran Dara Khosrowshahi, who immediately got to work straightening up the company’s business and image. Under Khosrowshahi, Uber doubled down on growing its meal delivery business, while working to cut costs elsewhere, including by selling off more experimental efforts like its self-driving car unit.

    In its most recent earnings report last month, Uber said that it had its “strongest quarter ever,” reporting a 49% year-over-year increase in revenue. Lyft’s latest earnings report, meanwhile, was unusually disappointing for Wall Street.

    One tech analyst, Dan Ives of Wedbush Securities, said Lyft’s conference call to discuss the results “was a Top 3 worst call we have ever heard” as its “management is trying to play darts blindfolded.” He slammed the earnings outlook offered on the call as a “debacle for the ages.”

    With Risher as the new CEO, Lyft is clearly hoping for a turnaround. Risher was the 37th employee of Amazon – a company that has long been the model for the on-demand industry – and he went on to become the e-commerce giant’s first head of product and head of US retail. In its statement announcing Risher as the new CEO, Lyft pointed to his legacy at Amazon: “In tribute to Mr. Risher’s contributions, Jeff Bezos added a permanent thank-you to the Amazon website, where it can still be seen  today.”

    Tom White, a senior research analyst at D.A. Davidson, wrote in a note this week that the new CEO “could signal an increased willingness to broaden the strategic aperture at  LYFT a bit as it relates to areas like product strategy (delivery), partnerships, or other novel ways to create value.”

    Former Uber CEO Travis Kalanick (left); current Uber CEO Dara Khosrowshahi (right).

    Nicholas Cauley, an analyst at research firm Third Bridge, wrote that Lyft “still has many levers it can pull to regain market share.” He added: “There are still improvements to be made and a leadership change is a positive catalyst for turning the ship around.”

    But in an interview with CNN’s Julia Chatterley on Wednesday, Risher seemed to dash hopes that Lyft would borrow from Uber’s playbook and branch into other delivery categories.

    Risher told CNN he wants to make sure Lyft focuses on providing a great ride-hailing service and “not get distracted by delivering pizzas or packages or all sorts of other things that other companies are doing.”

    “I don’t really want to get in the same car that, you know, just delivered the tuna sandwich,” he added. “And if you talk to drivers, they say, ‘Gosh, I don’t make as much in food delivery and it’s more frustrating. I get tickets when I’m double parked in front of the restaurant and so forth.’ So, you know, I think that, that Uber has its challenges too. I really do.”

    Risher also said “it’s not our focus” to pursue a sale of the company.

    While the market initially seemed to welcome Risher’s appointment, the slight uptick in Lyft stock after the news came out was quickly wiped out a day later once Risher started talking about his plans for the company.

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  • Appeals court can rule at any time in dispute over suspending FDA approval of medication abortion drug | CNN Politics

    Appeals court can rule at any time in dispute over suspending FDA approval of medication abortion drug | CNN Politics

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    CNN
     — 

    The Justice Department and a manufacturer of abortion pills have submitted the final round of court briefs in the emergency dispute over whether an appeals court should freeze a judge’s ruling that would suspend the Food and Drug Administration’s approval of medication abortion drugs.

    Now that the filings have been submitted, the US 5th Circuit Court of Appeals Court could rule at any time on whether to put a hold on the order from US District Judge Matthew Kacsmaryk.

    Kacsmaryk on Friday night said he was halting the FDA’s approval of the drug mifepristone but that he was delaying the order by seven days to give the pill’s defenders time to appeal the case. The Justice Department has asked the appeals court to act by 12 p.m. CT Thursday on its request that Kacsmaryk’s ruling be paused, to give the government time to seek a Supreme Court intervention if need be. The 5th Circuit is not obligated to meet that deadline.

    The Justice Department wrote in its new filing that Kacsmaryk purported “to be acting in a restrained manner … but there is nothing modest about upending the decades-long status quo by blocking access nationwide to a safe and effective drug.”

    “Effectively requiring Danco Laboratories and GenBioPro to cease distribution of mifepristone after more than two decades would upend the status quo, severely harming women, healthcare systems, and the public,” the Justice Department said, referring to the two US manufacturers of mifepristone.

    The Justice Department filing pushed back on the assertions by the challengers, made in their filing overnight in the emergency dispute, that the 5th Circuit did not have the authority to hear the appeal of Kacsmaryk’s ruling. The Justice Department also called out Kacsmaryk and the challengers for relying on anonymous blog posts to claim mifepristone is unsafe.

    Danco Labroratories, which intervened in the case to defend mifepristone’s approval, wrote in its new filing with the appeals court that if the ruling is not frozen, “women across the nation will face serious, unnecessary health risks from the elimination of access to a drug FDA has repeatedly deemed safe and effective and that is the standard of care.”

    In an overnight filing, the anti-abortion doctors who sued to ban medication abortion drugs told a federal appeals court that it should leave in place the ruling that will halt the drug’s FDA approval.

    The anti-abortion doctors defended Kacsmaryk’s ruling called it a “meticulously considered” ruling that “paints an alarming picture of decades-long agency lawlessness – all to the detriment of the women and girls FDA is charged to protect.”

    Mifepristone has been approved by the FDA for terminating pregnancies for nearly 23 years. Leading medical associations have rebuked the claims by the approval’s legal challengers and by the judge that the drug is unsafe.

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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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  • The viral new ‘Drake’ and ‘Weeknd’ song is not what it seems | CNN Business

    The viral new ‘Drake’ and ‘Weeknd’ song is not what it seems | CNN Business

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    CNN
     — 

    One of the buzziest songs recently circulating on TikTok and climbing the Spotify charts featured the familiar voices of best-selling artists Drake and the Weeknd. But there’s a twist: Drake and the Weeknd appear to have had nothing to do with it.

    The viral track, “Heart on my Sleeve,” comes from an anonymous TikTok user named Ghostwriter977, who claims to have used artificial intelligence to generate the voices of Drake and the Weeknd for the track.

    “I was a ghostwriter for years and got paid close to nothing just for major labels to profit,” Ghostwriter977 wrote in the video comments. “The future is here.”

    “Heart on my Sleeve” racked up more than 11 million views across several videos in just a few days and was streamed on Spotify hundreds of thousands of times. The original TikTok video has seemingly been taken down, and the song has since been removed from streaming services including YouTube, Apple Music and Spotify. (TikTok, YouTube, Apple and Spotify did not respond to a request for comment.)

    The exact origin of the song remains unclear, and some have suggested it could be a publicity stunt. But the stunning traction for “Heart on my Sleeve” may only add to the anxiety inside the music industry as it goes on offense against the possible threat posed by a new crop of increasingly powerful AI tools on the market.

    Universal Music Group, the music label that represents Drake, The Weeknd and numerous other superstars, sent urgent letters in April to streaming platforms, including Spotify and Apple Music, asking them to block AI platforms from training on the melodies and lyrics of their copywritten songs.

    “The training of generative AI using our artists’ music — which represents both a breach of our agreements and a violation of copyright law as well as the availability of infringing content created with generative AI on digital service providers – begs the question as to which side of history all stakeholders in the music ecosystem want to be on: the side of artists, fans and human creative expression, or on the side of deep fakes, fraud and denying artists their due compensation,” the company said in a statement this week to CNN.

    The record label said platforms have “a fundamental legal and ethical responsibility to prevent the use of their services in ways that harm artists.”

    But attempting to crack down on AI-generated music may pose a unique challenge. The legal landscape for AI work remains unclear, the tools to create it are widely accessible and social media makes it easier than ever to distribute it.

    AI-generated music is not new. Taryn Southern’s debut song “Break Free,” which was composed and produced with AI, hit the Top 100 radio charts back in 2018, and VAVA, an AI music artist (i.e. not a human), currently has a single out in Thailand.

    But a new crop of AI tools have made it easier than ever to quickly generate convincing images, audio, video and written work. Some services such as Boomy specifically leverage generative AI to make music creation more accessible.

    There’s little known about who is behind the Ghostwriter977 account, or which tools the creator used to make the track. The user did not respond to a CNN request for comment.

    In the bio section of the user’s TikTok account, a link directs users to a page on Laylo, a website where fans can sign up to get notifications from artists when new songs are dropped or merchandise and tickets become available. The company told CNN the account likely registered to build up its fan base and brought in “tens of thousands” of signups in the past few days.

    Laylo CEO Alec Ellin denied that the company was behind the viral track as some have speculated, but Ellin told CNN whoever did make it was “clearly a really savvy creator” and called it “a perfect example of the power of using Laylo to own your audience.”

    Michael Inouye, an analyst at ABI Research, said “Heart on my Sleeve” could have been made in several ways depending on the sophistication of the AI and level of musical talent.

    “If music artists were involved, they could create the background music and the lyrics, and then the AI model could be trained with content from Drake and The Weekend to replicate their voices and singing styles,” he said. “AI could also have generated most of the song, lyrics and replicated the artists again based on the training data set and any prompts given to direct the AI model.”

    He added that part of this fascination and virality of the song comes from “just how good AI has gotten at creating content, which includes replicating famous people.”

    Roberto Nickson, who is building an AI platform to help boost productivity and work flow, recently posted a video on Twitter showing how easy it is to record a verse and train an AI model to replace his vocals. He used the artist formerly known as Kanye West as an example.

    “The results will blow your mind,” he said. “You’re going to be listening to songs by your favorite artist that are completely indistinguishable and you’re not going to know if it’s them or not.”

    Although the entertainment industry has seen these issues coming, regulations are lagging behind the rapid pace of AI development.

    Audrey Benoualid, an entertainment lawyer based in Los Angeles, said one could argue “Heart On My Sleeve” does not infringe copyright as it appears to be an “original” composition.

    “Ghostwriter also publicized that Drake and The Weeknd were not involved in the making of the song, which could protect them from a ‘passing off’ claim, where profits are generated as consumers are misled into believing the song is actually a Drake-Weeknd collaboration,” she said in an email to CNN.

    However, Benoualid added, machine learning and generative AI programs may also be found to infringe copyright in existing works, either by making copies of those works to train the AI or by generating outputs that are substantially similar to those existing works. “Major labels would undoubtedly, and have already begun to, argue that their copyrights (and their artists’ intellectual property rights) are being infringed,” she said.

    Michael Nash, an executive VP at Universal Music Group, recently wrote in an op-ed that AI music is “diluting the market, making original creations harder to find, and violating artists’ legal rights to compensation from their work.”

    No regulations exist that dictate on what AI can and cannot train. But last month, in response to individuals looking to seek copyright for AI-generated works, the US Copyright Office released new guidance around how to register literary, musical, and artistic works made with AI.

    The copyright will be determined on a case-by-case basis, the guidance continued, based on how the AI tool operates and how it was used to create the final piece or work. The US Copyright Office announced it will also be seeking public input on how the law should apply to copywritten works the AI trains on, and how the office should treat those works.

    “AI and copyright law and the rights of musicians and labels have crashed into one another (once again), and it will take time for the dust to settle,” Benoualid said. “The landscape is anything but clear at the moment.”

    Inouye said if AI generated content becomes associated with famous individuals in a negative way that could be grounds for a lawsuit to not only take content down but to cease and desist their operations and potentially seek damage.

    “On the flip side, if the content were to be popular and the creator were to make revenue off of the artists’ image or likeness then again the artists could similarly request the content to be taken down and potentially sue for any monetary gains,” he said.

    But for now, concerned parties may be forced to play whack-a-mole. While services like Spotify pulled “Heart on my Sleeve,” versions of it appeared to continue circulating as of Tuesday on other online platforms.

    Even a song made with artificial intelligence may find real staying power online.

    – CNN’s Vanessa Yurkevich contributed to this report.

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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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  • Lyft stock plunges nearly 15% on weaker than expected revenue forecast | CNN Business

    Lyft stock plunges nearly 15% on weaker than expected revenue forecast | CNN Business

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    CNN
     — 

    Lyft may have a bumpy road ahead to recovery.

    The ride-hailing company reported revenue of $1 billion for the quarter ending in March, marking a 14% year-over-year increase and beating Wall Street estimate’s. But the company forecast weaker-than-expected revenue for the current quarter, which was enough to jitter investors.

    Shares of Lyft plunged nearly 15% in after-hours trading Thursday following the earnings results.

    The latest earnings report comes on the heels of Lyft shaking up its the C-suite and announcing plans to cut 26% of its employees as it fights for market share and profitability.

    David Risher, who previously worked at Amazon and Microsoft, recently took over as CEO of Lyft and the company’s two co-founders stepped down from their management positions at the company. Risher has been a member of the Lyft board since 2021.

    On a conference call with analysts on Thursday to discuss the results, Risher said Lyft is currently at “an inflection point” as people return to pre-pandemic social habits.

    “I am very aware of our current levels of growth and profitability are not acceptable,” Risher said on the call, his first as CEO. “I am committed to growing Lyft into a large, durable, profitable business, that our riders, drivers and shareholders love, and I look forward to keeping you informed on our progress.”

    Compared to its chief rival Uber, Lyft has so far struggled to bounce back from the pandemic’s hit to its business. While Uber diversified its business beyond ride-hailing by delivering meals and grocery items during the health crises, Lyft never did. Uber also was able to attract drivers back to the platform better than Lyft as pandemic restrictions eased in the U.S.

    Earlier this week, Uber said in its quarterly earnings report that revenue was up 29%, as demand for its rideshare and delivery services held firm despite lingering recession fears.

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  • Texas sends ban on gender-affirming care for minors to governor’s desk | CNN Politics

    Texas sends ban on gender-affirming care for minors to governor’s desk | CNN Politics

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    CNN
     — 

    The Texas legislature Wednesday night voted to ban gender-affirming care for most minors, sending a bill to the governor’s desk that, if enacted, would put critical health care out of reach for transgender youth in America’s second-most-populous state.

    Senate Bill 14 would block a minor’s access to gender reassignment surgeries, puberty blocking medication and hormone therapies, and providing this care to trans youth would lead to the revocation of a health care provider’s license.

    The legislation was held up for days by protests and procedural delays by Democrats in the House. House Republicans approved an amendment that makes minor exceptions for children who had begun receiving non-surgical gender-affirming care before June 1, 2023, and underwent 12 or more sessions of mental health counseling or psychotherapy six months prior to beginning prescription drug care.

    Children to whom those exceptions apply can continue their care but must “wean” off from the treatment with the help of their doctor. The Senate vote to agree to that change was the last step required for final passage.

    “Here in Texas, we will protect our kids! Thank you to everyone who supported and helped pass my bill. I look forward to @GovAbbott’s signature soon,” bill sponsor state Sen. Donna Campbell tweeted after the Senate’s vote.

    If signed by Abbott, the ban will take effect September 1.

    Gender-affirming care spans a range of evidence-based treatments and approaches that benefit transgender and nonbinary people. The types of care vary by the age and goals of the recipient, and are considered the standard of care by many mainstream medical associations.

    Though the care is highly individualized, some children and parents 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.

    Some Republicans have expressed concern over long-term outcomes of the treatments. But major medical associations say that gender-affirming care is clinically appropriate for children and adults with gender dysphoria – a psychological distress that may result when a person’s gender identity and sex assigned at birth do not align, according to the American Psychiatric Association.

    If Abbott signs the bill, it would make Texas the fifteenth state to restrict access to gender-affirming care for trans youth this year. Florida’s Republican Gov. Ron DeSantis signed a bill banning the care in his state Wednesday and Oklahoma placed their own care ban on the books at the beginning of May. Around 125 bills that target LGBTQ rights, especially health care for transgender patients, have been introduced nationwide this legislative session, according to data compiled by the American Civil Liberties Union.

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  • McCarthy tells Republicans he’s ‘nowhere near’ a debt limit deal with Biden as deadline nears | CNN Politics

    McCarthy tells Republicans he’s ‘nowhere near’ a debt limit deal with Biden as deadline nears | CNN Politics

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    CNN
     — 

    House Speaker Kevin McCarthy told Republicans during a closed-door meeting on Tuesday that he’s not close to a bipartisan deal with President Joe Biden to avoid a first-ever default on the nation’s debt.

    “We are nowhere near a deal,” McCarthy told Republicans. “I need you all to hang with me.”

    As each day passes without a deal, the clock is ticking closer to a looming deadline for default – which could be catastrophic for the global economy and have financial effects on countless Americans.

    Treasury Secretary Janet Yellen reaffirming in a letter to McCarthy on Monday that it is “highly likely” that the US Treasury will not be able to pay all of its bills in full and on time as soon as June 1. But several Republicans, including House Majority Leader Steve Scalise, have suggested that they do not believe Yellen’s estimate of June 1 as the so-called X-date for potential default and called on her to testify before Congress.

    While McCarthy has maintained that both parties could still obtain a deal by the June 1 deadline, he is also now accusing the president of trying to “disrupt” negotiations by bringing proposals involving Medicare and Social Security back “into the fold.”

    Republican Study Committee Chairman Kevin Hern said McCarthy told members during Tuesday morning’s meeting they should go home and work their districts if a deal isn’t reached by the White House and Republican negotiators by Memorial Day weekend. Members can always be called back, but Hern told reporters that this is a deal that has to be reached between a few key people.

    “The negotiations are with the speaker and his team and the White House and their team. And so the rest of us being here, just waiting around, doesn’t do any good for anyone,” Hern said.

    McCarthy’s continued optimism about securing a deal before next month follows a meeting at the White House with Biden on Monday evening, where he had underscored that both parties are united in their goal of reaching an agreement to raise the nation’s debt limit before the country defaults.

    “I felt we had a productive discussion. We don’t have an agreement yet, but I did feel the discussion was productive in areas that we have differences of opinion,” McCarthy said outside the West Wing, adding that the “tone” of Monday’s meeting was also “better than any other time we’ve had discussions.”

    Monday evening’s meeting at the White House came after negotiations hit a snag and were put on pause Friday, and representatives of each side spent most of the next two days criticizing the other while defending their own positions. But the parties appeared to smooth things over to resume negotiations when Biden and McCarthy spoke over the phone as the president was aboard Air Force One returning to Washington after a trip to Japan.

    Biden, in a statement, called Monday’s discussion in the Oval Office productive while acknowledging that areas of disagreement persist.

    “We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement,” Biden wrote. “While there are areas of disagreement, the Speaker and I, and his lead negotiators … and our staffs will continue to discuss the path forward.”

    On Monday evening, McCarthy maintained that both he and the president “agree we want to be able to come to an agreement.”

    McCarthy’s team and White House negotiators have been meeting daily in an effort to come to a consensus on the budget and the debt ceiling. Negotiators also met through the night on Monday and reconvened Tuesday morning.

    The speaker on Monday also acknowledged that he does not plan to waive the House’s three-day rule – which requires that legislation be posted for at least three days to allow House members to study it before it can be voted on.

    McCarthy has repeatedly warned that the White House and House GOP must reach a deal this week to avoid default. And if negotiations drag on, waiving the three-day rule could allow the legislation to pass more quickly. However, there are concerns that expediting the legislative process by waiving the rule may lead to members voting to support something they aren’t fully informed on.

    The speaker said he “would give everybody 72 hours, so everybody knows what they’re voting for.”

    Despite continued talks, House members on both sides of the aisle appear remain divided over the approach to debt ceiling discussions.

    House Democratic Leader Hakeem Jeffries said Monday evening asserted that talks are moving in the “wrong direction.”

    At a hastily called news conference on the steps of the Capitol, Jeffries attacked the GOP for rejecting a White House compromise – to freeze domestic spending at the current levels. Republicans instead want to roll back spending to previous years’ levels and write into law that spending would be capped for several years.

    “They’ve rejected the fact that President Biden is willing to consider freezing spending. It will reduce the deficit by a trillion dollars. This is what the extreme MAGA Republicans say that they want. They rejected. They rejected an unwillingness to not put the country through this again,” the New York Democrat said. He also repeatedly refused to say if House Democrats would accept a spending cut, as McCarthy has demanded.

    Jeffries’ position is critical because McCarthy will almost certainly need House Democratic support to pass any deal cut with the White House.

    During Tuesday’s closed-door meeting with Republicans, at least one hardline member – Rep. Chip Roy of Texas – complained about Republicans seeking a compromise that water downs what they passed in the House, according to a source in the room. Roy said it’s about saving the country, not seeking a deal.

    Still, a number of Republicans – even some who haven’t always backed McCarthy – said they are standing by the speaker and are happy with how he’s negotiated up until this point.

    “I am very confident in Kevin McCarthy as our speaker,” Rep. Nancy Mace, a Republican from South Carolina told CNN. “I don’t want Speaker McCarthy’s job. That’s a very tough job … he’s got the five families to deal with and a caucus of one right here. He’s doing a great job of pulling people together.”

    “I do not envy his position. I would not want it. He’s had a lot of success in bringing a lot of different factions together within the party and that is no small feat, and it’s not easy,” Mace said.

    Rep. Tim Burchett, who voted against the House’s GOP debt ceiling plan said that “McCarthy is very good at deal cutting. I trust him.”

    “If he says it’s going to start snowing in Knoxville tomorrow, I am running down … and buying a new sled,” Burchett added.

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  • Chinese star banker Bao Fan detained by country’s top anti-graft body, state media says | CNN Business

    Chinese star banker Bao Fan detained by country’s top anti-graft body, state media says | CNN Business

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    Hong Kong
    CNN
     — 

    One of China’s top tech bankers, who went missing in February, has been in the custody of the country’s top anti-graft watchdog since his disappearance and has had his detention extended, according to a state media report.

    The Economic Observer, a well regarded financial publication, reported that Bao Fan — founder and CEO of Hong Kong-listed China Renaissance, a boutique investment bank -— was taken away on February 7 by officials from the Central Commission for Discipline Inspection (CCDI) in an investigation into suspected corporate bribery.

    It said, citing an unnamed source, that his detention was extended on May 7 for three months.

    The mysterious disappearance of Bao has sent a chill through financial markets and China’s tech sector. Shares in China Renaissance had plunged more than 20% until they were suspended from trading in early April. The company also delayed the release of its annual results, because its auditors were unable to reach Bao.

    China Renaissance, which was responsible for a string of major Chinese tech deals since it was founded in 2005, didn’t immediately respond to a CNN request for comment.

    The CCDI is the top anti-graft body of the ruling Communist Party and is responsible for investigating corruption.

    China Renaissance had previously revealed only that Bao was “cooperating in an investigation” being carried out by certain authorities in the country. But it gave no other details.

    Bao is known as a veteran dealmaker who worked closely with top tech companies in China. He helped broker the 2015 merger between two of the country’s leading food delivery services, Meituan and Dianping. Today, the combined company’s “super app” platform is ubiquitous in China.

    His February disappearance coincided with a sweeping anti-corruption crackdown launched by the ruling Communist Party into the financial sector, which has ensnared more than a dozen senior executives at China’s biggest financial institutions.

    Analysts believe the crackdown is a new wave of leader Xi Jinping’s existing anti-graft campaign, through which he is believed to be further consolidating his power amid domestic and external challenges.

    The specific agencies handling Bao’s case include the CCDI’s international cooperation bureau and Beijing’s municipal anti-graft authorities, the Economic Observer said.

    Bao’s detention was related to another case involving Cong Lin, a former executive at his company, who had previously worked for China’s largest state owned bank for more than two decades, the newspaper added.

    Cong Lin, who became president of China Renaissance in July 2020, had previously served in a variety of executive roles at the Industrial and Commercial Bank of China, according to public company records.

    Cong has been detained by anti-corruption authorities since September for matters related to his tenure at ICBC Financial Leasing, the Economic Observer said. The details of Cong’s detention were previously reported by several Chinese media outlets.

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  • Biden addresses nation after avoiding catastrophic default: ‘The stakes could not have been higher’ | CNN Politics

    Biden addresses nation after avoiding catastrophic default: ‘The stakes could not have been higher’ | CNN Politics

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    Washington
    CNN
     — 

    President Joe Biden declared bipartisanship alive and well during his first ever Oval Office address on Friday, pointing to the compromise measure that raises the federal borrowing limit and avoids a catastrophic default as evidence his sometimes-mocked views of Washington are not a thing of the past.

    Addressing the nation from behind the Resolute Desk, Biden sought to harness the vintage presidential setting to make the case for a style of governing he insisted was not only still relevant but essential to avoiding disaster.

    Encouraging Americans to “treat each other with dignity and respect” and to “stop shouting,” he said the package he brokered with Republicans ensures economic progress going forward and amounts to a “crisis averted” – even though it sparked fury from some in his own party.

    And he vowed to continue working toward priorities that were left out – including raising taxes on the wealthy – in an implicit reelection message.

    “Passing this budget agreement was critical. The stakes could not have been higher,” he said.

    It’s been several years since Americans have witnessed the type of seated, direct-to-camera speech Biden delivered Friday. Past presidents have employed the Oval Office to deliver statements during moments of crisis, like after the terror attacks on 9/11 or when the space shuttle Challenger exploded.

    Biden was speaking not amid a crisis but having avoided one. Yet by evoking a style of speech used by presidents for decades, he seemed to also harken to an era of government that did not look down on attempts at compromise.

    “I know bipartisanship is hard and unity is hard, but we can never stop trying, because at moments like this one, the ones we just faced where the American economy and the world economy is at risk of collapsing, there is no other way,” he said in his speech.

    The decision to speak in the most formal of presidential settings came after weeks of fraught negotiations over the borrowing limit. The deal ultimately struck between Biden and House Speaker Kevin McCarthy raises the debt ceiling for two years, freezes domestic spending, imposes some new work requirements on food stamps and alters certain energy permitting rules.

    Biden had intentionally avoided declaring victory after brokering the agreement, partly in the hopes of securing the necessary Republican votes for the bill to pass.

    That tactic appeared to work; the measure cleared the House and Senate in bipartisan fashion. Biden said he planned to sign the bill Saturday and called the engagements with his Republican interlocutors “respectful.”

    He began his evening address by underscoring his efforts to work across the aisle to secure a positive outcome – an objective he noted had been met with intense skepticism.

    “When I ran for president, I was told that the days of bipartisanship is over and Democrats and Republicans could no longer work together. I refuse to believe that,” Biden said. “The only way American democracy can function is through compromise and consensus.”

    The president said neither Republicans nor Democrats “got everything they wanted but the American people got what they needed.”

    “We averted an economic crisis and an economic collapse,” he said.

    The Treasury Department has said it will run out of cash to pay its bills in full and on time on Monday. Economists had warned of severe consequences of a national default.

    Despite the bill’s passage, the legislation known as the Bipartisan Budget Agreement had detractors on both the left and right. Many liberals and conservatives voted against it, and the most right-wing lawmakers have raised the prospect of trying to oust McCarthy from his leadership role for what they say were insufficient spending cuts.

    On the left, progressive Democrats balked at some of the new work requirements added to the bill, though an analysis by the nonpartisan Congressional Budget Office showed the measure would likely keep the number of Americans on food stamps at roughly the same levels. The bill lifted work requirements for veterans and those experiencing homelessness.

    Democratic critics have also voiced outrage at approval included in the bill of a natural gas pipeline through West Virginia and Virginia.

    Biden and his aides have argued they were successfully able to stave off the most extreme Republican positions to arrive at a bill that ultimately avoided economic disaster.

    Through it all, some Democrats have grumbled at the president’s approach to the situation. While Biden initially said he would not negotiate over raising the debt ceiling, demanding only a “clean increase,” he ultimately entered into talks with McCarthy that tied the borrowing limit to budget cuts.

    Others encouraged Biden to use the 14th Amendment, which states the US debt “shall not be questioned,” to unilaterally raise the debt ceiling. Biden said it was possible to explore that option in the future, but it was too risky to deploy with the imminent threat of default.

    “Nothing would have been more catastrophic” than a default, Biden said in his remarks.

    This headline and story have been updated with additional developments.

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  • Mark Zuckerberg has thoughts on Apple’s new mixed reality headset | CNN Business

    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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  • Amazon is trying to make it simpler to sift through thousands of user reviews | CNN Business

    Amazon is trying to make it simpler to sift through thousands of user reviews | CNN Business

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    CNN
     — 

    Amazon is experimenting with using artificial intelligence to sum up customer feedback about products on the site, with the potential to cut down on the time shoppers spend sifting through reviews before making a purchase.

    On the Amazon product page for Apple’s third-generation AirPods, for example, the AI feature now sums up the more than 4,000 user ratings to note that the wireless headphones “have received positive feedback from customers regarding their sound quality and battery life.” But, it adds, “mixed opinions were also expressed about the performance, durability, fit, comfort, and value of the headphones.”

    The summary features the disclaimer: “AI-generated from the text of customer reviews.”

    “We are significantly investing in generative AI across all of our businesses,” Amazon said in a statement to CNN on Monday, referring to the technology that underpins services such as ChatGPT.

    The effort, first reported by CNBC, marks Amazon’s latest attempt to incorporate generative AI into its services and has the potential to help customers quickly determine the pros and cons of various products. But there are limits.

    For starters, the AI wording is not always intuitive. In the AirPods review, for example, the blurb says “all customers who mentioned stability had a negative opinion about it.”

    As with other generative AI tools, which are trained on vast troves of data online to come up with responses, there are also concerns about tone, accuracy and its potential to “hallucinate” details.

    “Given that generative AI is based on probability, mistakes are possible … and summaries may not be an accurate reflection of customer reviews,” said Reece Hayden, a senior analyst at market research firm ABI Research. “The possibility of hallucinations will be a worry for customers and merchants.”

    Hayden also questions whether the tool will be able to decipher fraudulent or bot-created reviews. “These reviews will be treated equally and therefore the summary may reflect fake, non-customer reviews,” Hayden said. (Amazon didn’t immediately respond to a request for comment on this possibility.)

    Amazon isn’t the only e-commerce company blending generative AI into the shopping experience. Some companies such as Shopify and Instacart are using the technology to help inform customers’ shopping decisions. Meanwhile, eBay recently rolled out an AI tool to help sellers generate product listing descriptions.

    Amazon CEO Andy Jassy said in a letter to shareholders in April that the company remains focused on “investing heavily” in the technology “across all of our consumer, seller, brand, and creator experiences.” The company is also reportedly working on adding ChatGPT-like search capabilities for its e-commerce store, and it’s rumored to be planning to use generative AI to bring conversational language to a home robot.

    Last month, Dave Limp, senior VP of devices and services, told CNN there is great interest in bringing generative AI to virtual assistant Alexa, so users can interact with the technology in a more fluid, natural way.

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  • First on CNN: New bipartisan bill in Senate could address TikTok security concerns without a ban | CNN Business

    First on CNN: New bipartisan bill in Senate could address TikTok security concerns without a ban | CNN Business

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    CNN
     — 

    Five US senators are set to reintroduce legislation Wednesday that would block companies including TikTok from transferring Americans’ personal data to countries such as China, as part of a proposed broadening of US export controls.

    The bipartisan bill led by Oregon Democratic Sen. Ron Wyden and Wyoming Republican Sen. Cynthia Lummis would, for the first time, subject exports of US data to the same type of licensing requirements that govern the sale of military and advanced technologies. It would apply to thousands of companies that rely on routinely transferring data from the United States to other jurisdictions, including data brokers and social media companies.

    The legislation comes amid a flurry of proposals to regulate how TikTok and other companies may handle the sensitive and valuable data of Americans — not just their names, email addresses and phone numbers but also potentially their behavioral data such as location information, search and browsing histories and personal interests.

    “Massive pools of Americans’ sensitive information — everything from where we go, to what we buy and what kind of health care services we receive — are for sale to buyers in China, Russia and nearly anyone with a credit card,” Wyden said in a statement. “Our bipartisan bill would turn off the tap of data to unfriendly nations, stop TikTok from sending Americans’ personal information to China, and allow nations with strong privacy protections to strengthen their relationships.”

    Lawmakers have scrutinized TikTok, in particular, for its ties to China through its parent company, ByteDance. Much of the existing legislation addressing TikTok at the federal and state level has focused on bans of the app. But Wyden’s bill subjecting US data to export licensing could address the issue without wading into the thorny legal issues surrounding a potential ban, an aide said, and simultaneously avoid giving broad new powers to the executive branch.

    Wednesday’s legislation, known as the Protecting Americans’ Data From Foreign Surveillance Act, does not identify TikTok by name. Instead, it directs the Commerce Department to maintain lists of countries that are considered trustworthy and untrustworthy for the purposes of receiving US data.

    There would be no restrictions applied to personal information transferred to trustworthy states, and no restrictions on individual internet users’ own transfers of their personal data, but companies seeking to transfer Americans’ personal information to countries outside of the trustworthy list would be required to apply for a license. Transfers to countries on the untrustworthy list would be automatically prohibited unless companies could prove they have a valid reason for a transfer, according to a copy of the bill text reviewed by CNN.

    Factors the Commerce Department would need to consider when building its lists include whether a country has enough of its own privacy safeguards — reflected in laws, regulations and norms — to prevent sensitive US data from being transferred further to one of the untrustworthy countries. Another factor includes whether a country has engaged in “hostile foreign intelligence operations, including information operations, against the United States,” language that appears to refer to China, Russia and other foreign adversaries.

    The Commerce Department would also be authorized to identify the specific types of information that would be subject to licensing requirements, based on their sensitivity, as well as how much information a company could transfer to a non-approved country before needing a license.

    A previous version of the bill was introduced last summer. The newest version, the Wyden aide said, includes fresh language that targets TikTok indirectly by prohibiting data transfers from one company to a parent company that may receive data requests by a hostile foreign government, when the company holds data on more than one million users.

    TikTok has faced criticism from US officials who say the company’s links to China pose a national security risk. TikTok has said it has never received a request for US user data from the Chinese government and would never comply with such a request.

    TikTok has also said it is working on securing US user data by storing it on servers controlled by Oracle and by establishing special US access protocols to prevent unauthorized use of the information.

    Should TikTok abide by its plan, known as Project Texas, Wednesday’s legislation would not affect the company, according to the Wyden aide, but if TikTok or ByteDance did seek to move US user data to China, then those transfers would potentially be subject to the proposed Commerce Department restrictions.

    Congress has made several attempts in recent months to address data transfers to foreign adversaries. In February, House lawmakers advanced a bill that would all but require the Biden administration to ban TikTok over national security concerns about the app. The next month, Senate lawmakers introduced a bill that would give the Commerce Department wide latitude to assess all foreign-linked technologies and to take virtually any measures, up to and including imposing a nationwide ban, to restrict their domestic use.

    Those bills have provoked a backlash from industry and civil liberties groups, as well as among some fellow lawmakers. Among the concerns are their potential impact on Americans’ First Amendment rights and a potential conflict with laws facilitating the free flow of media to and from foreign rivals. Other concerns include whether the breadth of the legislation could give the US government too much power and whether it could end up harming industries that are not the target of the legislation.

    The new bill includes language requiring more input from privacy, civil rights and civil liberties experts, said Justin Sherman, founder and CEO of the research firm Global Cyber Strategies and a senior fellow at Duke University’s Sanford School of Public Policy who has seen the bill.

    “You don’t load up Excel sheets in a shipping crate and send them to a foreign port,” Sherman said, but data transfers are a “hugely and often ignored problem in national security.”

    “We need to get beyond just looking at a couple mobile apps and platforms, and start looking at all parts of this ecosystem, including how data gets sold and transferred,” Sherman added, “and this bill takes an important look at that issue.”

    Other senators co-sponsoring Wednesday’s legislation include Rhode Island Democratic Sen. Sheldon Whitehouse, Tennessee Republican Sen. Bill Hagerty, New Mexico Democratic Sen. Martin Heinrich and Florida Republican Sen. Marco Rubio. A companion bill in the House will also be unveiled Wednesday, sponsored by Ohio Republican Rep. Warren Davidson and California Democratic Rep. Anna Eshoo.

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  • Meta officially launches Twitter rival Threads | CNN Business

    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.

    In this photo illustration, the app Threads from Meta seen displayed on a mobile phone. Threads is the latest app launched by Meta, which will be available from the 6th of July 2023 and will be a direct rival of social network Twitter, which has been facing a number of issues after the controversial takeover from entrepreneur Elon Musk.

    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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  • Bill Gates says AI risks are real but nothing we can’t handle | CNN Business

    Bill Gates says AI risks are real but nothing we can’t handle | CNN Business

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    CNN
     — 

    Bill Gates sounds less worried than some other executives in Silicon Valley about the risks of artificial intelligence.

    In a blog post on Tuesday, the Microsoft co-founder outlined some of the biggest areas of concern with artificial intelligence, including the potential for spreading misinformation and displacing jobs. But he stressed that these risks are “manageable.”

    “This is not the first time a major innovation has introduced new threats that had to be controlled,” Gates wrote. “We’ve done it before.”

    Gates likened AI to previous “transformative” changes in society, such as the introduction of the car, which then required the public to adopt seat belts, speed limits, driver’s licenses and other safety standards. Innovation, he said, can create “a lot of turbulence” in the beginning, but society can “come out better off in the end.”

    Microsoft is one of the leaders in the race to develop and deploy a new crop of generative AI tools into popular products with the promise of helping people be more productive and creative. But a number of prominent figures in the industry have also publicly raised doomsday scenarios about the rapidly evolving technology.

    In late May, tech leaders including Microsoft’s CTO Kevin Scott joined dozens of AI researchers and some celebrities in signing a one-sentence letter stating: “Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.”

    Gates has previously said people should not “panic” about apocalyptic AI scenarios. In a blog post earlier this year, Gates wrote: “Could a machine decide that humans are a threat, conclude that its interests are different from ours, or simply stop caring about us? Possibly, but this problem is no more urgent today than it was before the AI developments of the past few months.”

    In his blog post this week, Gates said he believes one of the biggest areas of concern for AI is the potential for deepfakes and AI-generated misinformation to undermine elections and democracy. Gates said he is “hopeful” that “AI can help identify deepfakes as well as create them.” He also said laws needs to be clear about deepfake usage and labeling “so everyone understands when something they’re seeing or hearing is not genuine.”

    Gates also expressed concern over how AI could make it easier for hackers and even countries to launch cyberattacks on people and governments. Gates urged the development of related cybersecurity measures and for governments to consider creating a global body for AI similar to the International Atomic Energy Agency.

    Gates ticked through other concerns, too, including how AI could take away people’s jobs,perpetuate biases baked into the data on which it’s trained, and even disrupt the way kids learn to write.

    “It reminds me of the time when electronic calculators became widespread in the 1970s and 1980s,” Gates wrote. “Some math teachers worried that students would stop learning how to do basic arithmetic, but others embraced the new technology and focused on the thinking skills behind the arithmetic.”

    Gates said “it’s natural to feel unsettled” during a transition period, but added he is optimistic about the future and how “history shows that it’s possible to solve the challenges created by new technologies.”

    “It’s the most transformative innovation any of us will see in our lifetimes,” he wrote, “and a healthy public debate will depend on everyone being knowledgeable about the technology, its benefits, and its risks.”

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  • Opinion: Utah’s startling new rules for kids and social media | CNN

    Opinion: Utah’s startling new rules for kids and social media | CNN

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    Editor’s Note: Kara Alaimo, an associate professor of communication at Fairleigh Dickinson University, writes about issues affecting women and social media. Her book, “Over the Influence: Why Social Media Is Toxic for Women and Girls — And How We Can Reclaim It,” will be published by Alcove Press in 2024. The opinions expressed in this commentary are her own. Read more opinion on CNN.



    CNN
     — 

    Utah’s Republican governor, Spencer Cox, recently signed two bills into law that sharply restrict children’s use of social media platforms. Under the legislation, which takes effect next year, social media companies have to verify the ages of all users in the state, and children under age 18 have to get permission from their parents to have accounts.

    Parents will also be able to access their kids’ accounts, apps won’t be allowed to show children ads, and accounts for kids won’t be able to be used between 10:30 p.m. and 6:30 a.m. without parental permission.

    It’s about time. Social networks in the United States have become potentially incredibly dangerous for children, and parents can no longer protect our kids without the tools and safeguards this law provides. While Cox is correct that these measures won’t be “foolproof,” and what implementing them actually looks like remains an open question, one thing is clear: Congress should follow Utah’s lead and enact a similar law to protect every child in this country.

    One of the most important parts of Utah’s law is the requirement for social networks to verify the ages of users. Right now, most apps ask users their ages without requiring proof. Children can lie and say they’re older to avoid some of the features social media companies have created to protect kids — like TikTok’s new setting that asks 13- to 17-year-olds to enter their passwords after they’ve been online for an hour, as a prompt for them to consider whether they want to spend so much time on the app.

    While critics argue that age verification allows tech companies to collect even more data about users, let’s be real: These companies already have a terrifying amount of intimate information about us. To solve this problem, we need a separate (and comprehensive) data privacy law. But until that happens, this concern shouldn’t stop us from protecting kids.

    One of the key components of this legislation is allowing parents access to their kids’ accounts. By doing this, the law begins to help address one of the biggest dangers kids face online: toxic content. I’m talking about things like the 2,100 pieces of content about suicide, self-harm and depression that 14-year-old Molly Russell in the UK saved, shared or liked in the six months before she killed herself last year.

    I’m also talking about things like the blackout challenge — also called the pass-out or choking challenge — that has gone around social networks. In 2021, four children 12 or younger in four different states all died after trying it.

    “Check out their phones,” urged the father of one of these young victims. “It’s not about privacy — this is their lives.”

    Of course, there are legitimate privacy concerns to worry about here, and just as kids’ use of social media can be deadly, social apps can also be used in healthy ways. LGBTQ children who aren’t accepted in their families or communities, for example, can turn online for support that is good for their mental health. Now, their parents will potentially be able to see this content on their accounts.

    I hope groups that serve children who are questioning their gender and sexual identities and those that work with other vulnerable youth will adapt their online presences to try to serve as resources for educating parents about inclusivity and tolerance, too. This is also a reminder that vulnerable children need better access to mental health services like therapy — they’re way too young to be left to their own devices to seek out the support they need online.

    But, despite these very real privacy concerns, it’s simply too dangerous for parents not to know what our kids are seeing on social media. Just as parents and caregivers supervise our children offline and don’t allow them to go to bars or strip clubs, we have to ensure they don’t end up in unsafe spaces on social media.

    The other huge challenge the Utah law helps parents overcome is the amount of time kids are spending on social media. A 2022 survey by Common Sense Media found that the average 8- to 12-year-old is on social media for 5 hours and 33 minutes per day, while the average 13- to 18 year-old spends 8 hours and 39 minutes every day. That’s more time than a full time-job.

    The American Academy of Pediatrics warns that lack of sleep is associated with serious harms in children — everything from injuries to depression, obesity and diabetes. So parents in the US need to have a way to make sure their kids aren’t up on TikTok all night (parents in China don’t have to worry about this because the Chinese version of TikTok doesn’t allow kids to stay on for more than 40 minutes and isn’t useable overnight).

    Of course, Utah isn’t an authoritarian state like China, so it can’t just turn off kids’ phones. That’s where this new law comes in requiring social networks to implement these settings. The tougher part of Utah’s law for tech companies to implement will be a provision requiring social apps to ensure they’re not designed to addict kids.

    Social networks are arguably addictive by nature, since they feed on our desires for connection and validation. But hopefully the threat of being sued by children who say they’ve been addicted or otherwise harmed by social networks — an outcome for which this law provides an avenue — will force tech companies to think carefully about how they build their algorithms and features like bottomless feeds that seem practically designed to keep users glued to their screens.

    TikTok and Snap didn’t respond to requests for comment from CNN about Utah’s law, while a representative for Meta, Facebook’s parent company, said the company shares the goal to keep Facebook safe for kids but also wants it to be accessible.

    Of course, if social networks had been more responsible, it probably wouldn’t have come to this. But in the US, tech companies have taken advantage of a lack of rules to build platforms that can be dangerous for our kids.

    States are finally saying no more. In addition to Utah’s measures, California passed a sweeping online safety law last year. Connecticut, Ohio and Arkansas are also considering laws to protect kids by regulating social media. A bill introduced in Texas wouldn’t allow kids to use social media at all.

    There’s nothing innocent about the experiences many kids are having on social media. This law will help Utah’s parents protect their kids. Parents in other states need the same support. Now, it’s time for the federal government to step up and ensure children throughout the country have the same protections as Utah kids.

    Suicide & Crisis Lifeline: Call or text 988. The Lifeline provides 24/7, free and confidential support for people in distress, prevention and crisis resources for you and your loved ones, and best practices for professionals in the United States. En Español: Linea de Prevencion del Suidio y Crisis: 1-888-628-9454.

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  • Samsung to cut chip production after posting lowest profit in 14 years | CNN Business

    Samsung to cut chip production after posting lowest profit in 14 years | CNN Business

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    Seoul
    Reuters
     — 

    Samsung Electronics said on Friday it would make a “meaningful” cut to chip production after flagging a worse-than-expected 96% plunge in quarterly operating profit, as a sharp downturn in the global semiconductor market worsens.

    Shares in the world’s largest memory chip and TV maker rose 3% in early trading, while rival SK Hynix shares surged 5% as investors welcomed plans to cut production to help preserve pricing power.

    Samsung

    (SSNLF)     estimated its operating profit fell to 600 billion won ($455.5 million) in January-March, from 14.12 trillion won a year earlier, in a short preliminary earnings statement. It was the lowest profit for any quarter in 14 years.

    “Memory demand dropped sharply … due to the macroeconomic situation and slowing customer purchasing sentiment, as many customers continue to adjust their inventories for financial purposes,” it said in the statement.

    “We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured,” it added, in a reference to those with sufficient inventories.

    The production cut signal is unusually strong for Samsung, which previously said it would make small adjustments like pauses for refurbishing production lines but not a full-blown cut.

    It did not disclose the size of the planned cut.

    The first-quarter profit fell short of a 873 billion won Refinitiv SmartEstimate, weighted toward analysts who are more consistently accurate. Multiple estimates were revised down earlier this week.

    It was the lowest since a 590 billion won profit in the first quarter of 2009, according to company data.

    With consumer demand for tech devices sluggish due to rising inflation, semiconductor buyers including data center operators and smartphone and personal computer makers are refraining from new chip purchases and using up inventories.

    Analysts estimated the chip division sustained quarterly losses of more than 4 trillion won ($3.03 billion) as memory chip prices fell and its inventory values were slashed.

    This would be the chip business’ first quarterly loss since the first quarter of 2009, a major divergence for what is normally a cash cow that generates about half of Samsung’s profits in better years.

    Revenue likely fell 19% from the same period a year earlier to 63 trillion won, Samsung said.

    The company is due to release detailed earnings, including divisional breakdowns, later this month.

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  • UK blocks Microsoft takeover of Activision Blizzard | CNN Business

    UK blocks Microsoft takeover of Activision Blizzard | CNN Business

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    London
    CNN
     — 

    The UK antitrust regulator has blocked Microsoft’s $69 billion purchase of Activision Blizzard, thwarting one of the tech industry’s biggest deals over concerns it will stifle competition in cloud gaming.

    The Competition and Markets Authority said in a statement Wednesday that it was worried the deal would lead to “reduced innovation and less choice for UK gamers over the years to come.”

    The acquisition would make Microsoft

    (MSFT)     “even stronger” in cloud gaming, a market in which it already holds a 60%-70% share globally, the regulator added.

    Activision Blizzard is one of the world’s biggest video game developers, producing games such as “Call of Duty,” “World of Warcraft,” “Diablo” and “Overwatch.” Microsoft, which sells the Xbox gaming console, offers a video game subscription service called Xbox Game Pass, as well as a cloud-based video game streaming service.

    The deal to combine the businesses has been met with growing opposition by antitrust regulators worldwide. In December, the US Federal Trade Commission sued to block the takeover over similar competition concerns. A hearing is scheduled for August. The European Union is also evaluating the transaction

    Microsoft could seek to make Activision’s games exclusive to its own platforms and then increase the cost of a Game Pass subscription, the Competition and Markets Authority said.

    “The cloud allows UK gamers to avoid buying expensive gaming consoles and PCs and gives them much more flexibility and choice as to how they play. Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the development of these opportunities,” it added.

    “The evidence available… indicates that, absent the merger, Activision would start providing games via cloud platforms in the foreseeable future.”

    Both companies plan to appeal the decision. “Alongside Microsoft, we can and will contest this decision, and we’ve already begun the work to appeal to the UK Competition Appeals Tribunal,” Activision Blizzard CEO Bobby Kotick said in a statement.

    Microsoft President Brad Smith added: “This decision appears to reflect a flawed understanding of the market and the way the relevant cloud technology actually works.”

    The Competition and Markets Authority, which launched an in-depth review of the blockbuster deal in September, said Microsoft’s proposed remedies to its concerns had “significant shortcomings.”

    “Their proposals… would have replaced competition with ineffective regulation in a new and dynamic market,” explained Martin Coleman, chair of the independent panel of experts conducting the investigation.

    “Microsoft already enjoys a powerful position and head start over other competitors in cloud gaming, and this deal would strengthen that advantage, giving it the ability to undermine new and innovative competitors,” Coleman continued. “Cloud gaming needs a free, competitive market to drive innovation and choice.”

    The UK cloud gaming market is expected to be worth up to £1 billion ($1.2 billion) by 2026, around 9% of the global market, according to the Competition and Markets Authority.

    -— Josh du Lac and Brian Fung contributed reporting.

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  • Federal appeals court tosses state antitrust suit seeking to break up Meta | CNN Business

    Federal appeals court tosses state antitrust suit seeking to break up Meta | CNN Business

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    CNN
     — 

    A group of states that sued to break up Facebook-parent Meta in 2020 were years too late to file their challenge and failed to make a persuasive case that the company’s data policies harmed competition, a federal appeals court ruled Thursday in a sweeping victory for the tech giant.

    In siding with Meta, the decision by a three-judge panel of the US Court of Appeals for the DC Circuit upheld a lower-court decision tossing out the suit initially filed by New York and dozens of other states.

    The decision is a blow to regulators who have cited Meta as a prime example of the way tech giants have allegedly abused their dominance. And it casts a shadow over a parallel antitrust case against Meta that was brought by the Federal Trade Commission at around the same time.

    The states’ original complaint had sought to unwind Meta’s past acquisitions of Instagram and WhatsApp, accusing the company of a “buy-or-bury” approach that violated antitrust laws.

    In 2021, a federal judge dismissed the complaint, saying that the lawsuit came long after the acquisitions had been completed in 2012 and 2014. Thursday’s appellate decision agreed.

    “An injunction breaking up Facebook, ordering it to divest itself of Instagram and WhatsApp under court supervision, would have severe consequences, consequences that would not have existed if the States had timely brought their suit and prevailed,” wrote Senior Circuit Judge Raymond Randolph.

    In addition, Randolph wrote, state allegations claiming that Meta’s — then Facebook’s — policies placing restrictions on app developers were anticompetitive didn’t hold up.

    The policies in question, Randolph wrote, simply told app developers they could not use Facebook’s platform “to duplicate Facebook’s core products,” and did not rise to the level of an antitrust violation under federal law.

    Although the states argued that Facebook’s policies at the time — which have since been removed — discouraged innovation by the company’s rivals, the complaint failed to establish how widely the policies affected Facebook’s third-party developers.

    “The States thus have not adequately alleged that this policy substantially foreclosed Facebook’s competitors, giving us an additional reason to reject their exclusive dealing theory,” the court held.

    A spokesperson for New York Attorney General Letitia James didn’t immediately respond to a request for comment.

    In a statement, Meta said the state’s case reflected a mischaracterization of “the vibrant competitive ecosystem in which we operate.”

    “In affirming the dismissal of this case, the court noted that this enforcement action was ‘odd’ because we compete in an industry that is experiencing ‘rapid growth and innovation with no end in sight,’ Meta said. “Moving forward, Meta will defend itself vigorously against the FTC’s distortion of antitrust laws and attacks on an American success story that are contrary to the interests of people and businesses who value our services.”

    In spite of Thursday’s decision, Meta must still face a similar lawsuit by the FTC, which also seeks to break up the company in connection with its Instagram and WhatsApp acquisitions.

    Last year, the same federal judge who dismissed the state suit, James Boasberg, allowed the federal suit to proceed. Boasberg had tossed out the FTC suit as well in 2021, saying the agency had failed to make an initial showing that Meta holds a monopoly in personal social networking. But he permitted the FTC to re-file its complaint with changes.

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