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Tag: company activities and management

  • Microsoft gives ground on streaming in bid to remove UK block on Activision deal | CNN Business

    Microsoft gives ground on streaming in bid to remove UK block on Activision deal | CNN Business

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    London
    CNN
     — 

    Microsoft has made a major concession to UK authorities in a bid to remove the last remaining regulatory obstacle to its huge takeover of Activision Blizzard.

    The companies have submitted a new proposal to the UK antitrust watchdog — the only regulator worldwide standing in the way of the $69 billion deal — that would see Activision’s (ATVI) cloud streaming rights outside the European Union and three other European countries sold to a rival, Ubisoft Entertainment. Microsoft President Brad Smith said in a blog post Tuesday that the companies believe the new proposal “presents a substantially different transaction” for the CMA to consider than its previous merger agreement.

    “We believe that this development is positive for players, the progression of the cloud game streaming market, and for the growth of our industry,” Smith said.

    The restructured deal, announced by the UK Competition and Markets Authority Tuesday, follows a decision by the CMA to block the acquisition on its original terms. That move put it at odds with EU regulators, which approved the plan in May. A US federal court also said in July that it would not block the deal from closing.

    CMA chief executive Sarah Cardell said the regulator would now consider the new proposal.

    “Our goal has not changed — any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.”

    Under the restructured deal, Ubisoft — a French video game developer — will be able to license out Activision’s content to any cloud gaming provider outside the European Economic Area, including in the United Kingdom. Shares in Ubisoft jumped 7% in Paris Tuesday.

    “This will allow gamers to access Activision’s games in different ways, including through cloud-based multigame subscription services,” Cardell said.

    Microsoft and Activision agreed last month to extend their merger deadline by three months to October 18, to allow more time to come to an agreement with the CMA. October 18 is now also the statutory deadline for a CMA decision on the new merger proposal, and Microsoft said it expects the agency’s review process to be completed ahead of that date.

    Microsoft (MSFT) announced the planned acquisition of Activision early last year. The transaction was valued at $69 billion at the time, making it one of the tech industry’s largest deals.

    Activision Blizzard is one of the world’s biggest video game developers, producing games such as “Candy Crush,” “Call of Duty,” “World of Warcraft” and “Overwatch.”

    –CNN’s Clare Duffy contributed to this report.

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  • Ex-Trump Org. executive testifies that Eric Trump led him to inflate values of some properties | CNN Politics

    Ex-Trump Org. executive testifies that Eric Trump led him to inflate values of some properties | CNN Politics

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    CNN
     — 

    The former controller of the Trump Organization says that Eric Trump directed him to make certain decisions that led to the inflated valuations of several Trump properties.

    Jeff McConney, also a co-defendant of former President Donald Trump, Eric Trump and Donald Trump Jr., testified Friday as the first week of the civil fraud trial came to an end.

    Internal Trump Org. spreadsheets shown in court Friday show notations by McConney that say Eric Trump directed McConney in phone conversations about certain property valuations that would later appear on the financial statements the judge in this case has ruled fraudulent.

    McConney testified that in those phone calls that Eric Trump directed him to factor certain things into the calculations that ultimately led to what the New York attorney general says are inflated valuations of properties including Seven Springs and the Trump National Golf Club Westchester.

    (Attorneys for Eric Trump have argued he was not aware that any phone conversations with McConney were used to formulate value assets in the financial statements for Trump properties.)

    The testimony came at the end of a dramatic week in New York. The former president attended the trial for three days, turning the trial into a media circus. He was also issued a gag order after making false allegations about one of Judge Arthur Engoron’s clerks.

    “I can tell you this trial, in all my 33 years, it’s chaos,” Trump attorney Christopher Kise said during a separate appeals court hearing Friday afternoon.

    Allen Weisselberg, Trump’s long-time chief financial officer who served 5 months in prison for his role in a decade-long tax fraud scheme after making a plea deal, is expected to testify when the trial resumes Tuesday.

    During his testimony McConney testified to the methodologies that he used to compute asset valuations like Mar-A-Lago which the attorney general’s office highlighted to the court as improper.

    Under questioning by special counsel to the New York attorney general Andrew Amer, McConney said he calculated Mar-A-Lago’s valuation as though it could be sold as a private residence.

    McConney testified that he did not know at the time that Trump had deeded away his right to develop the property beyond its use as a social club in 2005.

    McConney also said that he and Weisselberg consciously agreed to calculate the value of apartments at Trump Park Avenue, without factoring in that the units were rent stabilized, which significantly lowers the real-estate value because they cannot be rented at market price.

    The former controller said that he and Weisselberg increased the value of multiple Trump golf clubs by adding what they considered the value of Trump’s name on the properties, called a brand premium.

    Amer produced the annual statements of financial condition that contained a note stating, “The goodwill attached to the Trump name has significant financial value that has not been reflected in the preparation of this financial statement.”

    McConney confirmed he was aware that disclaimer was on the annual financial statements.

    He also testified when valuing Trump’s Seven Springs development beginning in 2011, he included the value of seven homes not yet built at the property. He said he did this at the direction of Eric Trump, who oversaw the project.

    Spreadsheets shown in court show McConney’s phone conversations detailing the methodology of the Seven Springs valuation.

    McConney similarly included 71 unbuilt units as realized profits in the valuation for Trump’s Briarcliff, New York golf course. He did this on more than one financial statement even when the development approval of those units had been paused, he testified.

    Amer also rehashed McConney’s testimony from the Trump Organization criminal tax fraud trial last year when the former controller said that he committed fraud at the behest of Weisselberg because he was afraid he’d lose his job.

    Over defense objections, Amer reminded the judge that McConney admitted that he knew it was illegal to help Weisselberg commit fraud when he helped him not only cheat taxes but also cut a payroll check to Weisselberg’s wife so she could illegally receive social security benefits.

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  • GM’s Cruise slashed fleet of robotaxis by 50% in San Francisco after collisions | CNN Business

    GM’s Cruise slashed fleet of robotaxis by 50% in San Francisco after collisions | CNN Business

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    CNN
     — 

    California authorities have asked General Motors to “immediately” take some of its Cruse robotaxis off the road after autonomous vehicles were involved in two collisions – including one with an active fire truck – last week in San Francisco.

    California’s Department of Motor Vehicles confirmed to CNN that it is investigating “recent concerning incidents involving Cruise vehicles in San Francisco.”

    “The DMV is in contact with Cruise and law enforcement officials to determine the facts and requested Cruise to immediately reduce its active fleet of operating vehicles by 50% until the investigation is complete and Cruise takes appropriate corrective actions to improve road safety,” the department said in a statement.

    That means Cruise, which is the self-driving subsidiary of General Motors, can have no more than 50 driverless cars in operation during the day, and 150 in operation at night, according to the department.

    The California DMV said that Cruise has agreed to the request, and a spokesperson from Cruise told CNN that the company is investigating the firetruck crash as well.

    The accidents come less than two weeks after California regulators officially gave the green light for Cruise and competitor Waymo to charge money for robotaxi trips around San Francisco at any time of day. Prior to the approval, Cruise was only authorized to offer fared passenger service from driverless cars overnight from 10 pm to 6 am, when there are fewer pedestrians or traffic that could confuse the autonomous vehicle’s software.

    The collisions, which both occurred on Thursday, reveal potential risks of driverless technology.

    In a blog post, Cruise’s general manager for San Francisco said the firetruck crash occurred when an emergency vehicle that appeared to be en route to an emergency scene moved into an oncoming lane of traffic to bypass a red light. Cruise’s driverless car identified the risk, the blog post said, but it “was ultimately unable to avoid the collision.”

    That crash resulted in one passenger being taken to the hospital via ambulance for seemingly minor injuries, according to the company.

    Cruise told CNN the other crash on Thursday took place when another car ran a red light “at a high rate of speed.”

    “The AV detected the vehicle and braked but the other vehicle made contact with our AV. There were no passengers in our AV and the driver of the other vehicle was treated and released at the scene,” Hannah Lindow, a Cruise spokesperson, told CNN.

    It is unclear whether the two accidents would have been avoided had there been a human driver rather than an autonomous vehicle (AV) involved – but the crashes were not the only two incidents involving Cruise’s driverless cars in San Francisco last week.

    On Tuesday, Cruise confirmed on X, formerly known as Twitter, that one of its driverless taxis drove into a construction area and stopped in wet concrete.

    “This vehicle has already been recovered and we’re in communication with the city about this,” the company said.

    The recent events underscore the challenges of creating safe, fully driverless passenger vehicles.

    General Motors acquired Cruise Automation in 2016 for $1 billion, solidifying its place in the autonomous vehicles race, but many companies have since scaled back, or abandoned their driverless car ambitions. The endeavor has proven costly, and mastering all situations that humans might face behind the wheel is difficult and time-consuming.

    Ridesharing giants Uber and Lyft have both sold autonomous vehicle units in recent years. Even Tesla CEO Elon Musk, who has been optimistic about autonomous vehicle technology, has yet to fully deliver on his promise.

    Tesla vehicles now come with the option to add a “full self-driving” feature in beta-testing for $15,000, but drivers must agree to “stay alert, keep your hands on the steering wheel at all times and maintain control of your car.”

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  • Nvidia’s quarterly sales double on the back of AI boom | CNN Business

    Nvidia’s quarterly sales double on the back of AI boom | CNN Business

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    New York
    CNN
     — 

    The artificial intelligence boom continues to fuel a blockbuster year for chipmaker Nvidia.

    Nvidia’s stock jumped as much as 9% in after-hours trading Wednesday after the Santa Clara, California-based company posted year-over-year sales growth of 101%, to $13.5 billion for the three months ended in July.

    The results were even stronger than the $11.2 billion in revenue that Wall Street analysts expected. The company’s non-GAAP adjusted profits grew a stunning 429% from the same period in the prior year to $2.70 per share, also beating analysts’ expectations. GAAP stands for generally accepted accounting principles.

    Nvidia’s stock has climbed by just over 220% since the start of this year amid a surge in the popularity of and demand for artificial intelligence technology. The American chipmaker produces processors that power generative AI, technology that can create text, images and other media — and which forms the foundation of buzzy new services such as ChatGPT.

    “A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” Nvidia CEO Jensen Huang said in a statement, adding that the company is working with “Leading enterprise IT system and software providers … to bring NVIDIA AI to every industry.”

    “The race is on to adopt generative AI,” he said.

    Huang had said following the company’s May earnings report that the firm was ramping up its supply to meet “surging demand.”

    “Nvidia’s hardware has become indispensable to the AI-driven economy,” Insider Intelligence senior analyst Jacob Bourne said in emailed commentary. “The pressing question is whether Nvidia can consistently exceed the now-higher expectations.”

    This story is developing and will be updated.

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  • T-Mobile to lay off 5,000 employees | CNN Business

    T-Mobile to lay off 5,000 employees | CNN Business

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    New York
    CNN
     — 

    T-Mobile on Thursday announced it plans to lay off 5,000 employees, or around 7% of its total staff, over the next five weeks.

    The reductions will largely affect corporate and back-office jobs that are “primarily duplicative” to other roles and will reduce the company’s middle management layers, CEO Mike Sievert said in a letter to employees Thursday. The company also plans to reduce its spending on “external workers and resources,” but its retail and “consumer care” staff who work directly with customers will not be affected, he said.

    “What it takes to attract and retain customers is materially more expensive than it was just a few quarters ago,” Sievert said.

    T-Mobile’s cuts comes after months of mass layoff announcements at a range of other technology companies — including Microsoft and Meta — as firms grapple with an uncertain economic environment.

    In its most recent quarterly earnings report last month, T-Mobile reported sales down 2.5% year-over-year and net customer additions fell slightly from the same period in the prior year, although it posted record low customer churn and profit growth. T-Mobile’s stock has fallen more than 7% since last August. Shares were trading down around 1% following its layoff announcement.

    In Thursday’s letter, Sievert said that in the three years since closing T-Mobile’s acquisition of rival carrier Sprint, it has been working to streamline the combined businesses and accelerate the build-out of its high-speed internet business. However, he suggested it was important for the company to now narrow its focus.

    “It is clear that doing everything we are doing and just doing it faster is not enough to deliver on these changing customer expectations going forward,” he said. “Today’s changes are all about getting us efficiently focused on a finite set of winning strategies.”

    T-Mobile plans to notify employees who will be laid off by the end of September. The company estimates it will incur a pre-tax charge of $450 million in the September quarter related to the reductions, according to a Thursday securities filing.

    Affected employees will receive “competitive severance packages” based on tenure, as well as accelerated stock vesting, access to career transition services and other benefits, Sievert told employees. He added that the company is not planning additional, widespread employee reductions in the foreseeable future.

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  • Taiwan’s Foxconn to build ‘AI factories’ with Nvidia | CNN Business

    Taiwan’s Foxconn to build ‘AI factories’ with Nvidia | CNN Business

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    Taipei
    CNN
     — 

    Taiwan’s Foxconn says it plans to build artificial intelligence (AI) data factories with technology from American chip giant Nvidia, as the electronics maker ramps up efforts to become a major global player in electric car manufacturing.

    Foxconn Chairman Young Liu and Nvidia CEO Jensen Huang jointly announced the plans on Wednesday in Taipei. The duo said the new facilities using Nvidia’s chips and software will enable Foxconn to better utilize AI in its electric vehicles (EV).

    “We are at the beginning of a new computing revolution,” Huang said. “This is the beginning of a brand new way of doing software — using computers to write software that no humans can.”

    Large computing systems powered by advanced chips will be able to develop software platforms for the next generation of EVs by learning from everyday interactions, they said.

    “Foxconn is turning from a manufacturing service company into a platform solution company,” Liu said. “In three short years, Foxconn has displayed a remarkable range of high-end sedan, passenger crossover, SUV, compact pick-up, commercial bus and commercial van.”

    Best known as the assembler of Apple’s iPhones, Foxconn envisages a similar business model for EVs. It doesn’t sell the vehicles under its own brand. Instead, it will build them for clients in Taiwan and globally.

    In 2021, Foxconn unveiled three EV models, including two passenger cars and a bus, for the first time. They were followed by additional models last year and two new ones — Model N, a cargo van, and Model B, a compact SUV — during Foxconn’s tech day on Wednesday.

    Its electric buses started running in the southern Taiwanese city of Kaohsiung last year, while its first electric car, sold under the N7 brand by Taiwanese automaker Luxgen, is expected to begin deliveries on the island from January 2024.

    Foxconn has entered a competitive industry.

    Global sales of EVs, including purely battery powered vehicles and hybrids, exceeded 10 million units last year, up 55% from 2021, according to the International Energy Agency. Nearly 14 million electric cars will be sold in 2023, it projected.

    Foxconn, which is officially known as the Hon Hai Technology Group, has been expanding its business by entering new industries such as EVs, digital health and robotics.

    Analysts say its entry into the EV space is a “logical diversification.”

    Smartphones are “a very saturated market already, and the room to grow in the … industry is getting [smaller],” said Kylie Huang, a Taipei-based analyst at Daiwa. “If they can really tap into the EV business, I do think that [they] could become influential in the next couple of years.”

    During last year’s tech day, Liu told reporters that the company hoped to build 5% of the world’s electric cars by 2025. It aims to eventually produce up to 40% to 45% of EVs around the world.

    But its foray into the industry hasn’t been entirely smooth.

    Last year, Foxconn bought a factory from Lordstown Motors in Ohio that used to make small cars for General Motors. That partnership ended in June, with the American car company filing for bankruptcy protection and announcing a lawsuit against Foxconn.

    Lordstown Motors accused Foxconn of “fraud” and failing to follow through on investment promises, while Foxconn dismissed the suit as “meritless” and criticized the company for making “false comments and malicious attacks.”

    Still, it’s clear Foxconn is leaning into its expanded ambitions, including hiring two new chief strategy officers for its EV and chips businesses.

    Chiang Shang-yi is a Taiwanese semiconductor industry veteran who helped TSMC become a global foundry powerhouse, while Jun Seki, a former vice chief operating officer at Nissan Motor, leads the EV unit.

    In May, Foxconn announced a new partnership with Infineon Technologies, a German company that specializes in automotive semiconductor chips, to establish a new research center in Taiwan.

    Bill Russo, founder of Shanghai-based consulting firm Automobility, said Foxconn has the advantage of coming from a consumer electronics background, which could allow it to come up with more innovative EV products compared with traditional automakers.

    “The biggest problem with legacy automakers is that they have so much sunk investment in a carryover platform, that they typically want to start not with a clean sheet of paper, but with a highly constrained set of requirements,” he said. “Those carryover technologies bring constraints to how you think about vehicles.”

    “When Tesla started, it started by saying, ‘I’m going to challenge all of that, I’m going to blow up the basic architecture of a car and simplify it greatly,’” he added.

    “I think that’s the advantage that a technology company has … And I think that’s the way Foxconn will come at this.”

    Hanna Ziady contributed to this report.

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  • Google launches watermarks for AI-generated images | CNN Business

    Google launches watermarks for AI-generated images | CNN Business

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    New York
    CNN
     — 

    In an effort to help prevent the spread of misinformation, Google on Tuesday unveiled an invisible, permanent watermark on images that will identify them as computer-generated.

    The technology, called SynthID, embeds the watermark directly into images created by Imagen, one of Google’s latest text-to-image generators. The AI-generated label remains regardless of modifications like added filters or altered colors.

    The SynthID tool can also scan incoming images and identify the likelihood they were made by Imagen by scanning for the watermark with three levels of certainty: detected, not detected and possibly detected.

    “While this technology isn’t perfect, our internal testing shows that it’s accurate against many common image manipulations,” wrote Google in a blog post Tuesday.

    A beta version of SynthID is now available to some customers of Vertex AI, Google’s generative-AI platform for developers. The company says SynthID, created by Google’s DeepMind unit in partnership with Google Cloud, will continue to evolve and may expand into other Google products or third parties.

    Deepfakes and altered photographs

    As deepfake and edited images and videos become increasingly realistic, tech companies are scrambling to find a reliable way to identify and flag manipulated content. In recent months, an AI-generated image of Pope Francis in a puffer jacket went viral and AI-generated images of former President Donald Trump getting arrested were widely shared before he was indicted.

    Vera Jourova, vice president of the European Commission, called for signatories of the EU Code of Practice on Disinformation – a list that includes Google, Meta, Microsoft and TikTok – to “put in place technology to recognize such content and clearly label this to users” in June.

    With the announcement of SynthID, Google joins a growing number of startups and Big Tech companies that are trying to find solutions. Some of these companies bear names like Truepic and Reality Defender, which speak to the potential stakes of the effort: protecting our very sense of what’s real and what’s not.

    The Coalition for Content Provenance and Authenticity (C2PA), an Adobe-backed consortium, has been the leader in digital watermark efforts, while Google has largely taken its own approach.

    In May, Google announced a tool called About this image, offering users the ability to see when images found on its site were originally indexed by Google, where images might have first appeared and where else they can be found online.

    The tech company also announced that every AI-generated image created by Google will carry a markup in the original file to “give context” if the image is found on another website or platform.

    But as AI technology develops faster than humans can keep up, it’s unclear whether these technical solutions will be able to fully address the problem. OpenAI, the company behind Dall-E and ChatGPT, admitted earlier this year that its own effort to help detect AI-generated writing, rather than images, is “imperfect,” and warned it should be “taken with a grain of salt.”

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  • LinkedIn is cutting more than 650 jobs | CNN Business

    LinkedIn is cutting more than 650 jobs | CNN Business

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    New York
    CNN
     — 

    LinkedIn is laying off 668 people across its engineering, product, talent and finance teams as part of a broader restructuring, the social media platform announced Monday.

    In a blog post, the social media site for professionals said it is making changes to its organizational structure and streamlining its decision making.

    “Talent changes are a difficult, but necessary and regular part of managing our business,” the company said. Microsoft bought LinkedIn in 2016.

    The company is dedicating many of its resources toward artificial intelligence. Recently, LinkedIn announced an AI-assisted candidate discovery for recruiters using the site. And in Microsoft’s most recent earnings report, LinkedIn reported its AI-powered collaborative articles are the fastest-growing traffic driver on the site.

    LinkedIn already cut 716 positions in May and shut down its jobs app in mainland China. That decision was made amid shifts in customer behavior and slower revenue growth, CEO Ryan Roslansky said in a letter to employees.

    In the wake of mass layoffs across the tech sector at the end of last year, LinkedIn enjoyed an uptick in users and “record engagement” among its 875 million members at the time, Microsoft CEO Satya Nadella told analysts in last October’s earnings call.

    The company continues to grow financially. LinkedIn also announced in its most recent earnings report that it surpassed $15 billion in revenue for the first time during this fiscal year, and that its membership growth “accelerated” for the eighth quarter in a row.

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  • Elon Musk blames the ADL for 60% ad sales decline at X, threatens to sue | CNN Business

    Elon Musk blames the ADL for 60% ad sales decline at X, threatens to sue | CNN Business

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    New York
    CNN
     — 

    X owner Elon Musk is threatening to sue the Anti-Defamation League for defamation, claiming that the nonprofit organization’s statements about rising hate speech on the social media platform have torpedoed X’s advertising revenue.

    In a post on X, formerly known as Twitter, Musk said US advertising revenue is “still down 60%, primarily due to pressure on advertisers by @ADL (that’s what advertisers tell us), so they almost succeeded in killing X/Twitter!”

    Musk also claimed that since he took over the platform in October 2022, the ADL “has been trying to kill this platform by falsely accusing it & me of being anti-Semitic.”

    “To clear our platform’s name on the matter of anti-Semitism, it looks like we have no choice but to file a defamation lawsuit against the Anti-Defamation League … oh the irony!” he said.

    The ADL said as a matter of policy it does not comment on legal threats. But the organization noted it recently met with X leadership, including CEO Linda Yaccarino, who Musk hired to help revive ad revenue. Yaccarino thanked ADL CEO Jonathan Greenblatt following the meeting last week, saying in a post on X, “A strong and productive partnership is built on good intentions and candor.”

    Meanwhile, Musk, the platform’s owner, has recently liked and engaged with a series of posts criticizing the organization.

    A #BanTheADL campaign has spread on X, and the ADL accused Musk of “lifting” the campaign.

    “ADL is unsurprised yet undeterred that antisemites, white supremacists, conspiracy theorists and other trolls have launched a coordinated attack on our organization. This type of thing is nothing new,” an ADL spokesperson said.

    The ADL and other similar organizations, including the Center for Countering Digital Hate, have found that the volume of hate speech on the website has grown dramatically under Musk’s stewardship.

    In one instance, the CCDH found the daily use of the n-word under Musk is triple the 2022 average and the use of slurs against gay men and trans persons are up 58% and 62%, respectively. The ADL said in a separate report that its data shows “both an increase in antisemitic content on the platform and a decrease in the moderation of antisemitic posts.”

    Musk called the reports in May by the two watchdog groups “utterly false,” claiming that “hate speech impressions,” or the number of times a tweet containing hate speech has been viewed, “continue to decline” since his early days of owning the company when the platform saw a spike in hate speech designed to test Musk’s tolerance.

    Still, two brands last month paused their ad spending on X after their advertisements ran alongside an account promoting Nazism. X suspended the account after the issue was flagged and said ad impressions on the page were minimal.

    Last month, Musk sued the CCDH, accusing the nonprofit group of deliberately trying to drive advertisers away from the platform by publishing reports critical of the platform’s response to hateful content.

    It specifically claims CCDH violated the platform’s terms of service, and federal hacking laws, by scraping data from the company’s platform and by encouraging an unnamed individual to improperly collect information about Twitter that it had provided to a third-party brand monitoring provider.

    In response, CCDH’s CEO Imran Ahmed previously told CNN that much of the lawsuit, particularly its claim about the unnamed individual, “sounds a bit like a conspiracy theory to me.”

    “The truth is that he’s [Elon Musk] been casting around for a reason to blame us for his own failings as a CEO,” Ahmed said, “because we all know that when he took over, he put up the bat signal to racists and misogynists, to homophobes, to antisemites, saying ‘Twitter is now a free-speech platform.’ … And now he’s surprised when people are able to quantify that there has been a resulting increase in hate and disinformation.”

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  • iPhone sales in China shrink as US political tensions grow | CNN Business

    iPhone sales in China shrink as US political tensions grow | CNN Business

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    CNN
     — 

    Demand for Apple’s new iPhone 15 lineup is weaker in China than for last year’s models, according to analysts.

    Sales for the iPhone 15 are down 4.5% in China compared to iPhone 14 sales in the first two weeks after its launch, according to Counterpoint Research. Separately, Bloomberg reported on Monday financial firm Jefferies said iPhone 15 sales dropped by a double-digit percentage following strong customer demand for Huawei’s new Mate 60 smartphone line.

    Apple

    (AAPL)
    shares fell 0.08% following the reports.

    The reports come amid a floundering Chinese economy, a struggling housing market, and more competition among higher-end vendors in China, particularly from Chinese device manufacturer Huawei.

    “We’re seeing a lot of nationalism right now as Chinese consumers who think they’ve been wronged by the US government and sanctions are gravitating toward the Mate 60 and that is edging into Apple volumes,” Jeff Fieldhack, research director at Counterpoint, told CNN.

    At the same time, China remains very important to Apple as it is the largest market behind the US. Fieldhack said he doesn’t believe Huawei will surpass Apple right now in terms of smartphone sales but expects continued interest in the Mate 60 will continue to “eek” into Apple’s numbers.

    “Apple made a lot of gains during its launch period last year, where it became number one in China,” he said. “Things looked strong but now, with the political tension and competition, that is a reason for concern.”

    However, the Phone 15 lineup is up about 10% year-over-year in the US, according to Counterpoint. That’s strong growth for Apple considering sales fell for the third consecutive quarter in August, ahead of the iPhone 15 launch.

    The latest iPhone 15 devices come with a slimmer design, a more-advanced main camera system and a customizable Action button, which gives the silence button additional controls, from starting a voice memo to writing a note. Perhaps the biggest change coming to the models is that they will now use a USB-C charging cord, ending an 11-year run with Apple’s proprietary Lightning charging cable.

    This isn’t the first time the Mate 60 has made headlines since its late August launch. In September, the US government sought more information about the Mate 60 Pro’s 5G Kirin 9000s processor reportedly developed specifically for the manufacturer. Its debut shocked industry experts who questioned how the company could make such a chip following sweeping efforts by the United States to restrict China’s access to foreign chip technology because of perceived national security concerns.

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  • Michael Cohen to take stand in fraud trial of his former boss, Donald Trump | CNN Politics

    Michael Cohen to take stand in fraud trial of his former boss, Donald Trump | CNN Politics

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    CNN
     — 

    Michael Cohen was once one of Donald Trump’s most loyal allies.

    But after going to jail for tax crimes and lying to Congress, Cohen, Trump’s former lawyer and “fixer,” became a star witness against his former boss, testifying before Congress about the hush-money payments he made to women claiming affairs with Trump and writing books highly critical of the former president.

    Tuesday, Trump and Cohen are expected to be face to face in a New York courtroom as Cohen delivers testimony as part of the New York attorney general’s civil fraud case against the former president.

    When Cohen takes the stand, he will face down a very angry Donald Trump. It’s the first time the two have been in the same room or even spoken in five years, according to multiple sources.

    “It appears that I will be reunited with my old client @realDonaldTrump when I testify this Tuesday, October 24th at the @NewYorkStateAG civil fraud trial. See you there!” Cohen posted last week on the social media site Threads.

    Cohen’s testimony is the latest high-profile moment in the civil fraud trial, in which New York Attorney General Letitia James is seeking to bar Trump from doing business in the state. While Trump has played only a passive role in the trial to date, he is expected to be called as a witness later on.

    Michael Cohen reacts to testimony about Eric Trump

    Trump voluntarily attended the civil trial’s opening days, and the former president returned last week, when Cohen was initially supposed to be called to testify, though Cohen’s appearance was delayed after he cited a medical issue.

    Trump is also returning to the courtroom after he was fined $5,000 last week by Judge Arthur Engoron – and warned about possible imprisonment – for violating a gag order not to speak about any members of the court staff. Engoron fined Trump over a social media post attacking Engoron’s clerk that had not been removed from Trump’s campaign website.

    Cohen is expected to testify about meetings with former Trump Organization Chief Financial Officer Allen Weisselberg and Trump regarding Trump’s financial statements and net worth. Cohen has claimed there were meetings with Weisselberg and Trump about Trump’s net worth before the financial statements were filed. Weisselberg testified earlier in the trial, “I don’t believe it ever happened, no.”

    The attorney general’s office has said Cohen’s testimony before the House Oversight Committee in February 2019 – when Cohen alleged that officials at the Trump Organization inflated the value of its assets to secure loans and insurance and that they lowered the values for tax benefits – was the impetus for its investigation that led to the lawsuit against Trump.

    Assistant Attorney General Colleen Faherty is expected to question Cohen on direct examination.

    Cohen’s testimony is also a crucial part of the criminal case against Trump brought by Manhattan District Attorney Alvin Bragg, who charged Trump earlier this year with falsifying business records related to the hush-money payments.

    Cohen testified before Congress in 2019 about Trump’s involvement in the hush-money scheme involving both former Playboy model Karen McDougal and adult-film star Stormy Daniels, who alleged having affairs with Trump (Trump has denied the affairs). Cohen even released a recording in which he and Trump can be heard discussing how they would buy the rights to McDougal’s story.

    Tuesday’s testimony, however, is expected to focus not on the hush-money payments but on Trump’s financial statements. Before Cohen testifies, the first witness will be Bill Kelly, the general counsel of Mazars, Trump’s onetime accounting firm.

    The trial is now in its fourth week. The attorney general’s office has called 12 witnesses to testify, including six current or former Trump Organization employees, two of whom are defendants in the case: Weisselberg and former Controller Jeff McConney.

    Trump’s lawyers have cross-examined only about half the witnesses so far, opting to reserve their right to call them in the defense case. Engoron set aside more than three months for the trial, which could continue through late December.

    An appraiser for Cushman & Wakefield testified last week that Trump’s son Eric Trump was closely involved in several appraisal consultations with the real estate firm for Trump assets Seven Springs and Trump National Golf Club in Briarcliff Manor, New York, that valued the properties substantially lower than the amounts that appeared on Trump’s financial statements in those years.

    Eric Trump said in a deposition for the case that he didn’t remember being involved in any appraisals for Trump properties.

    The attorneys are scheduled to argue at a hearing Friday morning whether Ivanka Trump, the former president’s daughter, can be forced to testify at trial even though an appellate court dismissed her as a defendant because the claims against her were too old.

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  • 6 takeaways from Apple’s iPhone 15 event | CNN Business

    6 takeaways from Apple’s iPhone 15 event | CNN Business

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    CNN
     — 

    Apple unveiled its iPhone 15 lineup along with other major updates during its September keynote event on Tuesday.

    The company announced it will switch to USB-C charging from its proprietary Lightning charging cable with the iPhone 15, marking a milestone for the company by adopting universal charging. The change aims to ultimately streamline the charging process across various devices — and brands.

    The company also showed off its Apple Watch Series 9 and Ultra 2 smartwatches, with new colors and features including gesture control, and a new iteration of its AirPods Pro wireless earbuds, also with USB-C charging.

    The iPhone charger update, along with changes to its design and camera system, comes as Apple looks to give consumers more reasons to upgrade their iPhones. Last month, Apple’s sales fell for the third consecutive quarter. iPhone revenue came in at $39.7 billion for the quarter, marking an approximately 2% year-over-year decline, as people update their devices less often.

    Apple on Tuesday said it will not raise prices for the iPhone 15 lineup, which could further incentivize users to upgrade.

    Here are the main takeaways from Apple’s Tuesday event:

    The latest iPhones are packed with subtle but significant design changes. To start, the iPhone 15 Pro and iPhone 15 Pro Max now feature a titanium casing, allowing the design to be slimmer and thinner than before.

    Other design changes on the premium models include a more-advanced 48 megapixel main camera with a larger sensor and a new telephoto lens for 5x optical zoom camera, exclusively on iPhone 15 Pro Max. The new Pro models’ design also features contoured edges and a customizable Action button, which gives the ring/silence button additional controls, from starting a voice memo to writing a note.

    Meanwhile, the basic iPhone 15 phones now include updated image stabilization for taking photos and videos, 2x optimization and updated portraits with richer color and better low-light performance. They will also come with the “Dynamic Island” tool – home to alerts, notifications and other controls, in place of the notch – which were previously only available on the iPhone 14 Pro.

    The iPhone 15 lineup also includes an Ultra-Wideband chip to power a handful of new features, including one that makes it easier to find friends who share their location in crowded areas.

    The iPhone 15 comes in 5 colors (white, black, pink, green and yellow) and in two sizes: A 6.1-inch screen for the iPhone 15 and 6.7 inches for iPhone 15 Pro.

    The iPhone 15 will start at $799, and iPhone 15 Pro will start at $999. The iPhone 15 models will be available for pre-order on Friday and for sale in stores on Friday, September 22.

    Perhaps the biggest change coming to the iPhone 15 models is that they will now use a USB-C charging cord, ending an 11-year run with Apple’s proprietary Lightning charging cable.

    Now Apple customers can use the same USB-C chargers to power their iPhones, iPads and Mac computers — no more scrambling to find the right charger for each device. Apple said a dedicated USB-C controller will allow for transfer speeds of up to 20 times faster than with USB-2 technology for the iPhone 15 Pro.

    The new iPhone 15 models will now use a USB-C charging cord, ending an 11-year run with Apple's proprietary lightning charging cable.

    The switch would come less than a year after the European Union voted to approve legislation to require smartphones, tablets, digital cameras, portable speakers and other small devices to support USB-C charging by 2024. The first-of-its-kind law aims to pare down the number of chargers and cables consumers must contend with when they purchase a new device, and to allow users to mix and match devices and chargers even if they were produced by different manufacturers.

    Apple will also sell a $29 USB-C Lightning adapter to let people connect their existing Lightning accessories to a USB-C-enabled iPhone or iPad to charge or share data.

    The company told CNN that iPhone users can recycle their old Lightning chargers via its in-store recycling program.

    Apple Watches are displayed during an announcement of new products on the Apple campus Tuesday, Sept. 12, 2023, in Cupertino, Calif.

    Apple kicked off Tuesday’s event by announcing the new Apple Watch Series 9, which features Apple’s in-house silicon chip and ultrawideband connectivity. The updated Apple Watch will let users log health data with their voice, use “name drop” to share contact information by touching another Apple Watch and raise their wrist to automatically brighten the display. The Series 9 will come in colors such as pink, navy, red, gold, silver and graphite.

    Apple also showed off the second iteration of its rugged Ultra smartwatch line, featuring the updated S9 custom chip and a new UWB chip. It also features more information on the display for more intensive tracking.

    The Apple Watch Series 9 will start at $399 and the Ultra is priced at $799. Customers can place orders today and they will be available on September 22.

    Apple on Tuesday announced the new Watch Series 9, with new gesture controls and improved connectivity.

    Apple is introducing an innovative and unique way to control its new lineup of smartwatches. The Watch Series 9 and high-end Ultra 2 watch will include a new gesture control called Double Tap, allowing allow users to tap their index finger and thumb together twice, to answer or end phone calls, play and pause music, or snooze alarms. The hand gesture can also scroll through widgets, much like turning the digital crown.

    The company said Double Tap is enabled by an enhanced neural engine that processes data from sensors and machine learning, and by monitoring the change in blood flow when two fingers are tapped together. It is available starting next month.

    A similar hand tap will be used to control the Vision Pro mixed reality headset when it launches next year.

    Apple’s next-generation software for the iPhone will be available to download starting on Monday, September 18. In June, the company showed off a slew of new tools coming to iOS 17, such as a more accurate autocorrect, a new feature called Live Voicemail that will transcribe a caller’s message in real time, and a NameDrop tool that lets users share their contact information by holding two iPhones close together. The iPhone’s phone app will also reposition the hang up button to the bottom right of the screen, next to other functions.

    The update will also bring adaptive audio to the AirPods Pro, which will adjust the noise cancellation and volume based on a user’s surroundings, and introduce conversation mode, which customizes the sound of what you’re listening to and softens when you start speaking to someone nearby.

    The iPhone 15 Pro is displayed after its introduction on the Apple campus, Tuesday, Sept. 12, 2023, in Cupertino, Calif.

    Lisa Jackson, Apple’s VP of environment, policy and social initiatives, said that the company’s Watch Series 9 will be Apple’s “first-ever carbon-neutral product,” thanks to efforts to reduce its carbon footprint and to offset emissions with carbon buybacks. She said this has been certified by an independent third-party.

    Doubling down on sustainability initiatives, Jackson also said the tech giant will no longer use leather in any new Apple product, including watch bands.

    Instead of leather, Apple said it will begin using a new textile that it is calling “fine woven.”

    Fine woven will be made of 68% post-consumer recycled content, giving it a significantly lower carbon footprint than leather, Apple said.

    “Beyond expected improved performance and incremental innovation embedded into Apple’s new products, it is great to see Apple communicate on sustainability as a new competitive advantage — especially with Apple’s first carbon neutral products,” Forrester Principal Analyst Thomas Husson said in emailed commentary following the event.

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  • Apple’s sales fall for the third consecutive quarter | CNN Business

    Apple’s sales fall for the third consecutive quarter | CNN Business

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    CNN
     — 

    Apple said Thursday that its revenue slipped 1% to $81.8 billion for its quarter ending July 1, marking the third consecutive year-over-year drop in quarterly revenue for the world’s most valuable company.

    There were some bright spots, however. The company said its services revenue reached a new all-time high of $21.2 billion. The services business — which includes Apple Music and Apple TV+ — is an increasingly important revenue driver for Apple.

    Moreover, Apple’s results narrowly beat Wall Street’s estimates for revenue and profit.

    iPhone revenue came in at $39.7 billion for the quarter, marking an approximately 2% year-over-year decline. Mac revenue was $6.8 billion for the quarter, a 7% drop, and iPad revenue was down nearly 20%. (The new iPad Air launched in the same quarter last year.)

    Shares of Apple ticked down by more than 1% in after-hours trading Thursday. But the stock has climbed some 50% from the start of the year.

    In a statement accompanying the earnings results, CEO Tim Cook touted the rosy services figure and strong performance in emerging markets.

    “We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone,” Cook said.

    On a call with analysts Thursday, Cook added, “We continue to face an uneven macroeconomic environment, including nearly four percentage points of foreign exchange headwinds.”

    “Looking ahead, we’ll continue to manage for the long term, always pushing the limits of what’s possible and always putting the customer at the center of everything we do,” Cook said.

    Apple’s June quarter is typically the slowest of the year for the tech giant, which usually unveils new iPhone models in September. Customers often hold out on upgrading until the new models are released. The quarter also ends before back-to-school shopping and the lucrative December holidays.

    The latest earnings report also comes as PC and smartphone sales slump, after an initial surge seen in the early days of the pandemic. Global PC shipments fell 16.6% last quarter, according to preliminary data from Gartner released last month. Worldwide smartphone shipments, meanwhile, dropped 7.8% last quarter compared to the same period the previous year, according to separate preliminary data from market research firm IDC last week.

    “Like other major tech companies, even Apple is suffering from the negative impact of a worsening macro backdrop and ongoing supply chain woes, though it has done a better job of navigating through the challenging environment,” Jesse Cohen, senior analyst at Investing.com, said in a note Thursday evening. “Investors appear to be reacting to the slight miss in iPhone sales, but I wouldn’t read too much into it as many consumers are holding out until the next iPhone release.”

    Looking forward, Apple’s CFO Luca Maestri said on the call that the company expects its quarter ending in September year-over-year revenue performance “to be similar to the June quarter,” assuming macroeconomic outlook doesn’t worsen.

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  • Bill Gates, Elon Musk and Mark Zuckerberg meeting in Washington to discuss future AI regulations | CNN Business

    Bill Gates, Elon Musk and Mark Zuckerberg meeting in Washington to discuss future AI regulations | CNN Business

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    Washington
    CNN
     — 

    Coming out of a three-hour Senate hearing on artificial intelligence, Elon Musk, the head of a handful of tech companies, summarized the grave risks of AI.

    “There’s some chance – above zero – that AI will kill us all. I think it’s low but there’s some chance,” Musk told reporters. “The consequences of getting AI wrong are severe.”

    But he also said the meeting “may go down in history as being very important for the future of civilization.”

    The session organized by Senate Majority Leader Chuck Schumer brought high-profile tech CEOs, civil society leaders and more than 60 senators together. The first of nine sessions aims to develop consensus as the Senate prepares to draft legislation to regulate the fast-moving artificial intelligence industry. The group included CEOs of Meta, Google, OpenAI, Nvidia and IBM.

    All the attendees raised their hands — indicating “yes” — when asked whether the federal government should oversee AI, Schumer told reporters Wednesday afternoon. But consensus on what that role should be and specifics on legislation remained elusive, according to attendees. 

    Benefits and risks

    Bill Gates spoke of AI’s potential to feed the hungry and one unnamed attendee called for spending tens of billions on “transformational innovation” that could unlock AI’s benefits, Schumer said.

    The challenge for Congress is to promote those benefits while mitigating the societal risks of AI, which include the potential for technology-based discrimination, threats to national security and even, as X owner Musk said, “civilizational risk.”

    “You want to be able to maximize the benefits and minimize the harm,” said Schumer, who organized the first of nine sessions. “And that will be our difficult job.”

    Senators emerging from the meeting said they heard a broad range of perspectives, with representatives from labor unions raising the issue of job displacement and civil rights leaders highlighting the need for an inclusive legislative process that provides the least powerful in society a voice.

    Most agreed that AI could not be left to its own devices, said Washington Democratic Sen. Maria Cantwell.

    “I thought Satya Nadella from Microsoft said it best: ‘When it comes to AI, we shouldn’t be thinking about autopilot. You need to have copilots.’ So who’s going to be watching this activity and making sure that it’s done correctly?”

    Other areas of agreement reflected traditional tech industry priorities, such as increasing federal investment in research and development as well as promoting skilled immigration and education, Cantwell added.

    But there was a noticeable lack of engagement on some of the harder questions, she said, particularly on whether a new federal agency is needed to regulate AI.

    “There was no discussion of that,” she said, though several in the meeting raised the possibility of assigning some greater oversight responsibilities to the National Institute of Standards and Technology, a Commerce Department agency.

    Musk told journalists after the event that he thinks a standalone agency to regulate AI is likely at some point.

    “With AI we can’t be like ostriches sticking our heads in the sand,” Schumer said, according to prepared remarks acquired by CNN. He also noted this is “a conversation never before seen in Congress.”

    The push reflects policymakers’ growing awareness of how artificial intelligence, and particularly the type of generative AI popularized by tools such as ChatGPT, could potentially disrupt business and everyday life in numerous ways — ranging from increasing commercial productivity to threatening jobs, national security and intellectual property.

    The high-profile guests trickled in shortly before 10 a.m., with Meta CEO Mark Zuckerberg pausing to chat with Nvidia CEO Jensen Huang outside the Senate Russell office building’s Kennedy Caucus Room. Google CEO Sundar Pichai was seen huddling with Delaware Democratic Sen. Chris Coons, while X owner Musk quickly swept by a mass of cameras with a quick wave to the crowd. Inside, Musk was seated at the opposite end of the room from Zuckerberg, in what is likely the first time that the two men have shared a room since they began challenging each other to a cage fight months ago.

    Elon Musk, CEO of X, the company formerly known as Twitter, left, and Alex Karp, CEO of the software firm Palantir Technologies, take their seats as Senate Majority Leader Chuck Schumer, D, N.Y., convenes a closed-door gathering of leading tech CEOs to discuss the priorities and risks surrounding artificial intelligence and how it should be regulated, at the Capitol in Washington, Wednesday, Sept. 13, 2023.

    The session at the US Capitol in Washington also gave the tech industry its most significant opportunity yet to influence how lawmakers design the rules that could govern AI.

    Some companies, including Google, IBM, Microsoft and OpenAI, have already offered their own in-depth proposals in white papers and blog posts that describe layers of oversight, testing and transparency.

    IBM’s CEO, Arvind Krishna, argued in the meeting that US policy should regulate risky uses of AI, as opposed to just the algorithms themselves.

    “Regulation must account for the context in which AI is deployed,” he said, according to his prepared remarks.

    Executives such as OpenAI CEO Sam Altman previously wowed some senators by publicly calling for new rules early in the industry’s lifecycle, which some lawmakers see as a welcome contrast to the social media industry that has resisted regulation.

    Clement Delangue, co-founder and CEO of the AI company Hugging Face, tweeted last month that Schumer’s guest list “might not be the most representative and inclusive,” but that he would try “to share insights from a broad range of community members, especially on topics of openness, transparency, inclusiveness and distribution of power.”

    Civil society groups have voiced concerns about AI’s possible dangers, such as the risk that poorly trained algorithms may inadvertently discriminate against minorities, or that they could ingest the copyrighted works of writers and artists without compensation or permission. Some authors have sued OpenAI over those claims, while others have asked in an open letter to be paid by AI companies.

    News publishers such as CNN, The New York Times and Disney are some of the content producers who have blocked ChatGPT from using their content. (OpenAI has said exemptions such as fair use apply to its training of large language models.)

    “We will push hard to make sure it’s a truly democratic process with full voice and transparency and accountability and balance,” said Maya Wiley, president and CEO of the Leadership Conference on Civil and Human Rights, “and that we get to something that actually supports democracy; supports economic mobility; supports education; and innovates in all the best ways and ensures that this protects consumers and people at the front end — and just not try to fix it after they’ve been harmed.”

    The concerns reflect what Wiley described as “a fundamental disagreement” with tech companies over how social media platforms handle misinformation, disinformation and speech that is either hateful or incites violence.

    American Federation of Teachers President Randi Weingarten said America can’t make the same mistake with AI that it did with social media. “We failed to act after social media’s damaging impact on kids’ mental health became clear,” she said in a statement. “AI needs to supplement, not supplant, educators, and special care must be taken to prevent harm to students.”

    Navigating those diverse interests will be Schumer, who along with three other senators — South Dakota Republican Sen. Mike Rounds, New Mexico Democratic Sen. Martin Heinrich and Indiana Republican Sen. Todd Young — is leading the Senate’s approach to AI. Earlier this summer, Schumer held three informational sessions for senators to get up to speed on the technology, including one classified briefing featuring presentations by US national security officials.

    Wednesday’s meeting with tech executives and nonprofits marked the next stage of lawmakers’ education on the issue before they get to work developing policy proposals. In announcing the series in June, Schumer emphasized the need for a careful, deliberate approach and acknowledged that “in many ways, we’re starting from scratch.”

    “AI is unlike anything Congress has dealt with before,” he said, noting the topic is different from labor, healthcare or defense. “Experts aren’t even sure which questions policymakers should be asking.”

    Rounds said hammering out the specific scope of regulations will fall to Senate committees. Schumer added that the goal — after hosting more sessions — is to craft legislation over “months, not years.”

    “We’re not ready to write the regs today. We’re not there,” Rounds said. “That’s what this is all about.”

    A smattering of AI bills have already emerged on Capitol Hill and seek to rein in the industry in various ways, but Schumer’s push represents a higher-level effort to coordinate Congress’s legislative agenda on the issue.

    New AI legislation could also serve as a potential backstop to voluntary commitments that some AI companies made to the Biden administration earlier this year to ensure their AI models undergo outside testing before they are released to the public.

    But even as US lawmakers prepare to legislate by meeting with industry and civil society groups, they are already months if not years behind the European Union, which is expected to finalize a sweeping AI law by year’s end that could ban the use of AI for predictive policing and restrict how it can be used in other contexts.

    A bipartisan pair of US senators sharply criticized the meeting, saying the process is unlikely to produce results and does not do enough to address the societal risks of AI.

    Connecticut Democratic Sen. Richard Blumenthal and Missouri Republican Sen. Josh Hawley each spoke to reporters on the sidelines of the meeting. The two lawmakers recently introduced a legislative framework for artificial intelligence that they said represents a concrete effort to regulate AI — in contrast to what was happening steps away behind closed doors.

    “This forum is not designed to produce legislation,” Blumenthal said. “Our subcommittee will produce legislation.”

    Blumenthal added that the proposed framework — which calls for setting up a new independent AI oversight body, as well as a licensing regime for AI development and the ability for people to sue companies over AI-driven harms — could lead to a draft bill by the end of the year.

    “We need to do what has been done for airline safety, car safety, drug safety, medical device safety,” Blumenthal said. “AI safety is no different — in fact, potentially even more dangerous.”

    Hawley called Wednesday’s sessions “a giant cocktail party” for the tech industry and slammed the fact that it was private.

    “I don’t know why we would invite all the biggest monopolists in the world to come and give Congress tips on how to help them make more money, and then close it to the public,” Hawley said. “I mean, that’s a terrible idea. These are the same people who have ruined social media.”

    Despite talking tough on tech, Schumer has moved extremely slowly on tech legislation, Hawley said, pointing to several major tech bills from the last Congress that never made it to a Senate floor vote.

    “It’s a little bit like antitrust the last two years,” Hawley said. “He talks about it constantly and does nothing about it. My sense is … this is a lot of song and dance that covers the fact that actually nothing is advancing. I hope I’m wrong about that.”

    Hawley is also a co-sponsor of a bill introduced Tuesday led by Minnesota Democratic Sen. Amy Klobuchar that would prohibit generative AI from being used to create deceptive political ads. Klobuchar and Hawley, along with fellow co-sponsors Coons and Maine Republican Sen. Susan Collins, said the measure is needed to keep AI from manipulating voters.

    Massachusetts Democratic Sen. Elizabeth Warren said the broad nature of the summit limited its potential.

    “They’re sitting at a big, round table all by themselves,” Warren said of the executives and civil society leaders, while all the senators sat, listened and didn’t ask questions. “Let’s put something real on the table instead of everybody agree[ing] that we need safety and innovation.”

    Schumer said that making the meeting confidential was intended to give lawmakers the chance to hear from the outside in an “unvarnished way.”

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  • The big bottleneck for AI: a shortage of powerful chips | CNN Business

    The big bottleneck for AI: a shortage of powerful chips | CNN Business

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    CNN
     — 

    The crushing demand for AI has also revealed the limits of the global supply chain for powerful chips used to develop and field AI models.

    The continuing chip crunch has affected businesses large and small, including some of the AI industry’s leading platforms and may not meaningfully improve for at least a year or more, according to industry analysts.

    The latest sign of a potentially extended shortage in AI chips came in Microsoft’s annual report recently. The report identifies, for the first time, the availability of graphics processing units (GPUs) as a possible risk factor for investors.

    GPUs are a critical type of hardware that helps run the countless calculations involved in training and deploying artificial intelligence algorithms.

    “We continue to identify and evaluate opportunities to expand our datacenter locations and increase our server capacity to meet the evolving needs of our customers, particularly given the growing demand for AI services,” Microsoft wrote. “Our datacenters depend on the availability of permitted and buildable land, predictable energy, networking supplies, and servers, including graphics processing units (‘GPUs’) and other components.”

    Microsoft’s nod to GPUs highlights how access to computing power serves as a critical bottleneck for AI. The issue directly affects companies that are building AI tools and products, and indirectly affects businesses and end-users who hope to apply the technology for their own purposes.

    OpenAI CEO Sam Altman, testifying before the US Senate in May, suggested that the company’s chatbot tool was struggling to keep up with the number of requests users were throwing at it.

    “We’re so short on GPUs, the less people that use the tool, the better,” Altman said. An OpenAI spokesperson later told CNN the company is committed to ensuring enough capacity for users.

    The problem may sound reminiscent of the pandemic-era shortages in popular consumer electronics that saw gaming enthusiasts paying substantially inflated prices for game consoles and PC graphics cards. At the time, manufacturing delays, a lack of labor, disruptions to global shipping and persistent competing demand from cryptocurrency miners contributed to the scarce supply of GPUs, spurring a cottage industry of deal-tracking tech to help ordinary consumers find what they needed.

    But the current shortage is much different in kind, industry experts say. Instead of a disruption to supplies of consumer-focused GPUs, the ongoing shortage reflects the sudden, exploding demand for ultra high-end GPUs meant for advanced work such as the training and use of AI models.

    Production of those GPUs is at capacity, but the rush of demand has overwhelmed what few sources of supply there are.

    There is a “huge sucking sound” coming from businesses representing the unrivaled demand for AI, said Raj Joshi, a senior vice president at Moody’s Investors Service who tracks the chips industry.

    “Nobody could’ve modeled how fast or how much this demand is going to increase,” Joshi said. “I don’t think the industry was ready for this kind of surge in demand.”

    One company in particular stands to benefit massively from the AI surge: Nvidia, the trillion-dollar chipmaker that according to industry estimates controls 84% of the market for discrete GPUs. In a research note published in May, Joshi estimated that Nvidia would experience “unparalleled” revenue growth in the coming quarters, with revenue from its data center business outstripping that of rivals Intel and AMD combined.

    In its May earnings call, Nvidia said it had “procured substantially higher supply for the second half of the year” to meet the rising demand for AI chips. The company declined to comment on Tuesday, citing its latest pre-earnings quiet period.

    AMD, meanwhile, said Tuesday it expects to unveil its answer to Nvidia’s AI GPUs closer to the end of the year.

    “There’s very strong customer interest across the board in our AI solutions,” said AMD CEO Lisa Su on the company’s earnings call. “There is a lot more to do, but I would say the progress that we’ve made has been significant.”

    Compounding the issue is that GPU-makers themselves cannot get enough of a key input from their own suppliers, said Sid Sheth, founder and CEO of AI startup d-Matrix. The technology, known as a silicon interposer, works by marrying standalone computing chips with high-bandwidth memory chips and is necessary for completing GPUs.

    The Biden administration has made increasing US chip manufacturing capacity a priority; the passage of the CHIPS Act last year is set to provide billions in funding for the domestic chip industry and for chip research and development. But those investments are aimed at a broad swath of chip technologies and not specifically targeted at boosting GPU production.

    The chip shortage is expected to ease as more manufacturing comes online and as competitors to Nvidia also expand their offerings. But that could take as long as two to three years, some industry experts say.

    In the meantime, the shortage could force companies to find creative ways around the problem. Companies that can’t get their hands on enough chips are now having to be more efficient, said Sheth.

    “Necessity is the mother of invention, right?” Sheth said. “So now that people don’t have access to unlimited amounts of computing power, they are finding resourceful ways of using whatever they have in a much smarter way.”

    That could include, for example, using smaller AI models that may be easier and less computationally intensive to train than a massive model, or developing new ways of doing computation that don’t rely as heavily on traditional CPUs and GPUs, Sheth said.

    “Net-net, this is going to be a blessing in disguise,” he added.

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  • Neuralink, Elon Musk’s brain implant startup, set to begin human trials | CNN Business

    Neuralink, Elon Musk’s brain implant startup, set to begin human trials | CNN Business

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    New York
    CNN
     — 

    Elon Musk’s controversial biotechnology startup Neuralink opened up recruitment for its first human clinical trial Tuesday, according to a company blog.

    After receiving approval from an independent review board, Neuralink is set to begin offering brain implants to paralysis patients as part of the PRIME Study, the company said. PRIME, short for Precise Robotically Implanted Brain-Computer Interface, is being carried out to evaluate both the safety and functionality of the implant.

    Trial patients will have a chip surgically placed in the part of the brain that controls the intention to move. The chip, installed by a robot, will then record and send brain signals to an app, with the initial goal being “to grant people the ability to control a computer cursor or keyboard using their thoughts alone,” the company wrote.

    Those with quadriplegia due to cervical spinal cord injury or amyotrophic lateral sclerosis (ALS) may qualify for the six-year-long study – 18 months of at-home and clinic visits followed by follow-up visits over five years. Interested people can sign up in the patient registry on Neuralink’s website.

    Musk has been working on Neuralink’s goal of using implants to connect the human brain to a computer for five years, but the company so far has only tested on animals. The company also faced scrutiny after a monkey died in project testing in 2022 as part of efforts to get the animal to play Pong, one of the first video games.

    In May, Neuralink tweeted that it had received FDA clearance for human clinical trials, with the approval acknowledged by the agency in a statement. The opening of human trials also comes over a month after the brain chip startup raised $280 million in a fundraising round led by Founders Fund, a San Francisco-based VC firm established by Peter Thiel, the controversial billionaire who was also a co-founder at PayPal.

    “We’re extremely excited about this next chapter at Neuralink,” the company wrote at the time on X, the Musk-owned social media platform formerly known as Twitter.

    Musk has forecast human trials at the startup at least four times since 2019, yet the company didn’t seek FDA approval until 2022. At that time, the agency rejected the bid, according to a March Reuters report, citing safety concerns about parts of the implant migrating to other parts of the brain and possible brain tissue damage when the devices are removed. Musk said at a December recruiting event that Neuralink has submitted “most” of its paperwork to the US Food and Drug Administration and could begin testing on humans within six months.

    But employees told Reuters in December that the company is rushing to market, resulting in careless animal deaths and a federal investigation.

    Neuralink did not respond to CNN’s request for comment.

    Before Neuralink’s brain implants hit the broader market, they’ll need regulatory approval. The FDA put out a paper in 2021 mapping out the agency’s initial thoughts on brain-computer interface devices, noting the field is “progressing rapidly.”

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  • Neuralink, Elon Musk’s brain implant startup, raises $280 million from Peter Thiel’s VC fund | CNN Business

    Neuralink, Elon Musk’s brain implant startup, raises $280 million from Peter Thiel’s VC fund | CNN Business

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    New York
    CNN
     — 

    Elon Musk’s biotechnology startup Neuralink raised $280 million in a fundraising round, the company announced Monday via X, the Musk-owned social media platform formerly known as Twitter.

    The Series D round was led by Founders Fund, a San Francisco-based VC firm established by Peter Thiel, the controversial billionaire who was also a cofounder at PayPal.

    “We’re extremely excited about this next chapter at Neuralink,” the company wrote.

    The brain chip startup wants to use implants to connect your brain to a computer, a goal Musk has been working on for five years. The company so far has only tested on animals and faced scrutiny after a monkey died in project testing in 2022 as part of efforts to get the animal to play Pong, a computer game.

    Macaque monkeys have been used in testing by Neuralink as the company has been developing Bluetooth-enabled implantable chips — inserted into the monkey’s brains — that ​the company says can communicate with computers via a small receiver.

    The funding news comes months after Musk announced the company was moving towards human trials. The billionaire said at a December recruiting event that Neuralink has submitted “most” of its paperwork to the US Food and Drug Administration and could begin testing on humans within six months.

    But employees have said the company is rushing to market, resulting in careless animal deaths and a federal investigation, according to a December report by Reuters.

    Before Neuralink’s brain implants are mass-produced and hit the broader market, they’ll need regulatory approval. The FDA put out a paper in 2021 mapping out the agency’s initial thoughts on brain-computer interface devices, noting the field is “progressing rapidly.”

    A tweet by Neuralink Monday announced they were hiring and invited those interested to “join in on engineering challenges to restore vision and mobility.”

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  • Britain says may clear restructured Microsoft-Activision deal | CNN Business

    Britain says may clear restructured Microsoft-Activision deal | CNN Business

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    Microsoft’s restructuring of its proposed $69 billion acquisition of Activision Blizzard “opens the door” to the biggest ever gaming deal being cleared, Britain’s antitrust regulator said Friday.

    Microsoft (MSFT) announced the deal in early 2022, but it was blocked in April by the UK competition regulator, which was concerned the US tech giant would gain too much control of the nascent cloud gaming market.

    Activision Blizzard (ATVI), which makes “Call of Duty,” agreed in August to sell its streaming rights to Ubisoft Entertainment in a new attempt to win over the Competition and Markets Authority (CMA).

    The Ubisoft divestment “substantially addresses previous concerns,” the Competition and Markets Authority said in a statement.

    “While the CMA has identified limited residual concerns with the new deal, Microsoft has put forward remedies which the CMA has provisionally concluded should address these issues,” the regulator said.

    Consummating the deal would turn Microsoft into the third largest video game publisher in the world, after Tencent and Sony.

    Microsoft said it was “encouraged by this positive development in the CMA’s review process.”

    “We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline,” Microsoft President Brad Smith said.

    Activision, which also makes “World of Warcraft,” “Overwatch” and “Candy Crush,” said the preliminary approval was great news for its future with Microsoft.

    The European Union waved the deal through in May after accepting Microsoft’s commitments to license Activision’s games to other platforms, the same remedies that Britain had rejected.

    The US Federal Trade Commission also opposes the deal, but it has failed to stop it. A federal judge ruled in July that the deal can close, a decision the FTC is appealing.

    The CMA’s decision to reopen the case was a radical departure from its play book, but it said on Friday it had been consistent and Microsoft had “substantially restructured the deal” to address its concerns.

    “It would have been far better, though, if Microsoft had put forward this restructure during our original investigation,” CMA Chief Executive Sarah Cardell said.

    “This case illustrates the costs, uncertainty and delay that parties can incur if a credible and effective remedy option exists but is not put on the table at the right time.”

    Equity analyst Sophie Lund-Yates at Hargreaves Lansdown said the loss of the cloud gaming rights was not an ideal concession for Microsoft to have to make, but it was necessary collateral if the deal were to be waved through.

    “This looks to be the final bump in the road,” she said.

    The CMA said there were “residual concerns” around the Ubisoft deal, but Microsoft has offered remedies to ensure the terms of the sale were enforceable by the regulator.

    It is now consulting on the remedies before making a final decision.

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  • Judge denies AMC settlement on stock conversion, shares surge | CNN Business

    Judge denies AMC settlement on stock conversion, shares surge | CNN Business

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    A judge on Friday blocked a proposed settlement on AMC Entertainment Holdings’ stock conversion plan that would allow the company to issue more shares, sending its common shares soaring and preferred shares down in after-hours trading.

    Delaware Vice Chancellor Morgan Zurn said in the ruling that she cannot approve the settlement “as submitted,” because it would release potential claims by preferred shareholders who were not represented in the lawsuit or settlement.

    AMC shares were up 69% at $7.44 in trading after the bell. Its preferred shares were down 20% at $1.43.

    The company was sued in February for allegedly rigging a shareholder vote that would allow AMC to convert preferred stock to common stock and issue hundreds of millions of new shares.

    The conversion would dilute the common stockholders’ ownership, but allow AMC to pay down some of its $5.1 billion in debt.

    AMC has told investors it is burning cash at an unsustainable rate and warned that an inability to raise capital could force the company into bankruptcy.

    It cannot carry out its plan to do so until the litigation has been resolved.

    The settlement received more than 2,800 objections from shareholders, a level of interest Zurn called “unprecedented” in her ruling on Friday.

    “AMC’s stockholder base is extraordinary,” she said, adding that many “care passionately about their stock ownership and the company.”

    The judge rejected the settlement after determining the holders of common stock could not release AMC from potential claims that belong to holders of preferred shares, an issue which objectors did not raise.

    Many objectors sought permission to opt out of the settlement and sue on their own behalf, dismissing AMC’s dire financial predictions as “fear tactics.”

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  • Biden administration announces new labels for gadgets that are less vulnerable to cyberattacks | CNN Business

    Biden administration announces new labels for gadgets that are less vulnerable to cyberattacks | CNN Business

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    CNN
     — 

    The next time you’re in the market for a smart TV, fitness tracker or other connected gadget, you could see a new US government-backed label identifying some products as being particularly hardened against hackers.

    On Tuesday, the Biden administration announced it’s moving to implement a cybersecurity labeling program aimed at helping consumers pick out trustworthy tech products that are rated as more secure than the competition.

    The program seeks to bolster the nation’s cybersecurity overall by guiding Americans who may be in the market for smart home tech or wearables toward products that meet a high standard for cybersecurity as defined by the National Institute of Standards and Technology (NIST).

    The label will appear as a “distinct shield logo,” according to the White House. Products that meet the criteria for the label could include tech that requires strong passwords and that provides regular software updates to guard against the latest threats, for example.

    A wide range of products could be covered, the administration said, including smart refrigerators, microwave ovens, thermostats, home voice assistants and — eventually — WiFi routers, after NIST finishes designing cybersecurity standards for them later this year.

    For years, cybersecurity has been an afterthought in a market for so-called “internet of things” (IoT) devices that prioritizes low costs over security, according to security experts. One of the more famous examples of IoT security failures came in 2016, when criminal hackers used an army of infected computers, known as the Mirai botnet, to disrupt access to the websites of Twitter, PayPal, and others.

    Products certified under the new program may come with a QR code that links to a national database affirming its participation, the administration added in a release.

    The launch of the program could still be as far as a year away. But the administration took its first steps toward implementation on Tuesday as the Federal Communications Commission applied for a trademark linked to the effort, known as the “US Cyber Trust Mark.”

    The FCC, which regulates wireless devices, also issued a formal proposal that will be open for public feedback on how it should manage the program.

    “This new labeling program would help provide Americans with greater assurances about the cybersecurity of the products they use and rely on in their everyday lives,” the administration said in a statement. “It would also be beneficial for businesses, as it would help differentiate trustworthy products in the marketplace.”

    The government proposal comes two years after President Joe Biden signed an executive order calling for an “‘energy star’ type of label” for tech products. At the time, the US government was still reeling from a crippling ransomware attack days earlier that had forced a temporary shutdown of Colonial Pipeline, one of the country’s largest fuel pipeline operators.

    The executive order highlighted how the administration could use product labeling, combined with the federal government’s immense procurement power, to shape commercial markets and raise the bar for companies that sell technology to both US agencies and ordinary consumers.

    Companies including Amazon, Best Buy, Cisco, Google, LG, Logitech, Samsung and others pledged to assist in the government’s labeling push by committing to increase the cybersecurity of their products, the White House said Tuesday.

    Dave DeWalt, CEO of the cybersecurity-focused investment firm NightDragon, said the government’s move could help address a “perfect storm” of billions of insecure IoT devices.

    “Market forces alone were never going to be sufficient to force manufacturers to step up and deliver more secure devices,” he said. “We’ve taken an essential step now in the right direction to put the power back in the hands of the consumers to choose better security.”

    The Consumer Technology Association said Tuesday its next annual trade show, CES 2024, will feature “certification-ready products” once the FCC finalizes its rules.

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