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Tag: computer science and information technology

  • Where TikTok users may go if the app gets banned | CNN Business

    Where TikTok users may go if the app gets banned | CNN Business

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    CNN
     — 

    On the eve of a high-profile TikTok hearing this week, the company shared that it now has more than 150 million US monthly active users. But after the heated, hours-long hearing, filled with lawmakers telling TikTok’s CEO the app should be banned, some may now be wondering where all those users will go next if the social network disappears.

    The answer: probably other big American tech platforms.

    Many of the largest US social media companies have spent years copying TikTok’s features, which would make a shift away from the platform easier for its creators and users. Instagram, for example, introduced its own short-form video tool in 2020 called Reels. Snapchat has Spotlight, YouTube has Shorts and even Spotify has a TikTok-like video feed with recommended music and other content.

    “Obviously, if a ban is approved and enforced, the content, user count and engagement, and likely ad dollars for Snap, Instagram, and YouTube will increase,” said Ali Mogharabi, an analyst at financial services firm Morningstar, in a recent investor’s note.

    In other words, Washington’s efforts to crack down on TikTok over national security concerns could ultimately benefit some of the same American tech companies that Washington has scrutinized for other reasons, including their market dominance and impact on teens.

    Even if a ban does not happen, it could still benefit these companies. “This uncertainty could push some TikTok content creators to focus more on, and possibly begin, pushing their audiences to other social network platforms,” Mogharabi said.

    At least one company is already seeing a boost. Snap’s stock rose in the days leading up to TikTok’s appearance before Congress amid renewed talks among federal officials of a TikTok ban.

    At the hearing on Thursday, TikTok CEO Shou Chew was grilled by lawmakers who expressed deep skepticism about his company’s attempts to protect US user data and ease concerns about its ties to China. TikTok’s parent company, ByteDance, is based in Beijing and subject to Chinese data request laws that could require it to hand over user data to the government.

    Washington Republican Rep. Cathy McMorris Rodgers, the chair of the House Energy and Commerce Committee, opened Thursday’s hearing by telling Shou: “Your platform should be banned.” As the hearing was taking place, House Speaker Kevin McCarthy said he supports legislation that would effectively ban TikTok and Secretary of State Antony Blinken said TikTok should be “ended one way or another.”

    If that happens, Lian Jye Su, an analyst with ABI Search, believes users will follow their favorite TikTok influencers and content creators wherever they go.

    “Most users will flock to where the content creators go next,” Su said. “Instagram, Snapchat, and Youtube Shorts stand to benefit the most as content creators will still prefer places where they can monetize their content.”

    Smaller platforms have the opportunity to gain ground, too, Su said. Short-form video platform Triller, which reportedly has over 450 million users, is actively courting popular content creators from TikTok with cash bonuses, partnerships and other incentives to switch platforms. Meanwhile, Dubsmach – a Reddit-owned short video platform – and Clash, which allows people to create 21-second looping videos, are other platforms that could be increasingly appealing to creators.

    For now, talk of a TikTok ban may still be premature. The Biden administration has threatened to ban TikTok from the United States unless the app’s Chinese owners agree to spin off their share of the social media platform.

    “I strongly doubt this app will go dark,” Rep. Raja Krishnamoorthi told CNN during a primetime special about TikTok on Thursday. He said a sale is most likely.

    If the app is sold, that could complicate matters for some US tech platforms.

    “For Snap, which has a weaker network effect than Meta, a possibly more trusted US TikTok may make it more difficult to attract users away from or keep them from migrating to TikTok,” Moghaharbi wrote in the investor’s note.

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  • The city without TikTok offers a window to America’s potential future | CNN Business

    The city without TikTok offers a window to America’s potential future | CNN Business

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    Hong Kong
    CNN
     — 

    Across the United States, more than 150 million people are being faced with the possibility of a new reality: life without TikTok.

    The wildly popular short-form video app has been at the center of an ongoing battle, with lawmakers calling for an outright ban, and the company portraying itself as a critical community space, educational platform and just plain fun.

    In Hong Kong, there’s no need to imagine that reality: TikTok discontinued its services there in 2020.

    Its abrupt departure was met with mixed reactions: disappointment from some users and content creators, but also relief from others who say life is better without the app’s infinite scroll.

    At the time of its exit, TikTok had a relatively modest presence in the city and was not ubiquitous like it is in the US today.

    But the varied reactions to its departure, and the way users have pivoted to other platforms or even real-life offline communities, offer Americans a glimpse into their potential TikTok-less future.

    TikTok announced its exit from Hong Kong in July 2020, a week after China imposed a controversial national security law in the city. The decision came as the app tried to distance itself from China and its Beijing-based parent company ByteDance, in the face of growing pressure in the US under the Trump administration.

    But it meant a jarring halt for creators like Shivani Dukhande, who had roughly 45,000 followers at the time the app left Hong Kong.

    Dukhande, 25, saw her account take off in early 2020 during the pandemic, with lifestyle content such as cooking and wellness videos flourishing on the platform.

    “There were a lot of new creators emerging,” she said. “We used to all collaborate together, we had a chat where we would all speak and share ideas and it created a community.”

    Momentum began to build. Companies started reaching out to Dukhande, paying for sponsored content and collaborating on ad campaigns. Brands began partnering with creators on trending “challenges” in a bid to attract young new consumers.

    “More people were joining and it was becoming such a fun thing to do,” she said. “Then, it just kind of went away one morning.”

    “If it continued, then I probably could have made enough to have quit my 9 to 5,” she said. “If I had the chance to grow, it could have been a potential career path.”

    This is one of the main arguments TikTok has made in recent weeks in the US. In March, as the company’s CEO prepared to testify before Congress, TikTok produced a docuseries highlighting American small business owners who rely on the platform for their livelihoods.

    The platform is used by nearly five million businesses in the US, TikTok said in March. And it’s set to surpass rivals: London-based research firm Omdia projected in November that TikTok’s advertising revenues will exceed the combined video ad revenues of Meta – home of Facebook and Instagram – and YouTube by 2027.

    This is partly because people are spending more time on TikTok. In the second quarter of 2022, TikTok users globally spent an average of 95 minutes per day on the app, according to data analytics firm SensorTower – nearly twice as much time as users spent on Facebook and Instagram.

    Shivani Dukhande had created videos about wellness, lifestyle, food and Hong Kong on her TikTok account.

    But in Hong Kong, other platforms have jumped in to fill the gap. Reels, Instagram’s short-form video product, with similar features as TikTok such as an endless scroll, is growing quickly – and Dukhande has gotten on board.

    She had to rebuild her audience from scratch, and now has 12,500 Instagram followers, but she feels optimistic about its growth. Still, the loss of TikTok was a “missed opportunity,” she said, and the burgeoning community of creators has largely faded from sight.

    “The amount of jobs, the amount of content creation, the amount of marketing opportunities that were there with TikTok – we sort of missed out on that whole chunk of it.”

    But for some people, TikTok’s departure was a welcome change.

    Poppy Anderson, 16, has been using TikTok since its launch in 2018. And, like many others in her generation, she would spend hours “scrolling and scrolling” – even when feeling unfulfilled.

    “It was very easy to kind of find exactly what you like on there, because the [algorithm-run] For You page kept you there,” she said. “And it’s entertaining, but you don’t really get anything from it.”

    She described TikTok as often being a toxic environment that breeds narrow thinking, herd mentality, a misguided “cancel culture” and inappropriate online behavior such as critiquing the bodies of girls and women. Even people she knew in real life began acting differently after joining the app, which strained friendships, she said.

    Martin Poon, 15, also grew weary of TikTok, but it was hard to quit.

    “Everyone was using it, so I feel like there was a sense that you have to use it, you have to be on top of things, you have to know what’s going on. And I think that was stressful to me,” he said.

    Misinformation and misogyny ran rampant on TikTok, with accounts like those of Andrew Tate, the self-styled “alpha male” recently detained in Romania on allegations of human trafficking and rape, gaining popularity among boys at Poon’s school.

    “It’s just concerning how [these accounts] have so much impact on the youth, and it has so much grip on what we think and how it affects our behavior,” said Poon – though he added that misinformation is a major problem on all social media platforms, not just TikTok.

    Experts have long worried about the impact of TikTok on young people’s mental health, with one study claiming the app may surface potentially harmful content related to suicide and eating disorders to teenagers within minutes of them creating an account.

    In response to growing pressure, TikTok recently announced a one-hour daily screentime limit for users under 18, though users will be able to turn off this default setting.

    Anderson acknowledged some positives about TikTok, like open conversations about mental health. Still, she was glad when the app became inaccessible. Falling asleep became easier without the lure of TikTok. “I didn’t have the self control to get off it on my own,” she said.

    For Poon and his friend Ava Chan, also 15, TikTok’s disappearance sparked new beginnings.

    When the app left in 2020, they were doing online classes, isolated from friends and bored at home. At the time, Instagram Reels and YouTube Shorts had yet to arrive in Hong Kong.

    “We had to figure out how to use our time other than being on TikTok,” said Chan. “For us, that was exploring our passions more.”

    For both, that came in advocating for the neurodiverse community. They launched a club at school that spreads education and awareness about neurodiversity, as well as participating in volunteer activities with neurodiverse people.

    Both said it lent them a sense of purpose, and as time went on, they saw other benefits.

    Their friends, who would previously spend time filming and watching TikToks together, began having more face-to-face conversations. They noticed peers begin exercising outdoors more, which was made easier as Covid restrictions lifted. Their mental health improved.

    Of course, being teenagers, they’re not off social media entirely and use it as a tool to promote their club – but it’s far from the previous hours of scrolling. And while they occasionally wonder what’s happening on TikTok outside Hong Kong, the allure of it is lost when nobody else around them uses it either.

    “A lot of people, they’ve just kind of forgotten about it,” said Anderson. “People move to different platforms – or just move on.”

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

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

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    Washington
    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  • FTC says Meta should be barred from monetizing data from younger users | CNN Business

    FTC says Meta should be barred from monetizing data from younger users | CNN Business

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    CNN
     — 

    The Federal Trade Commission on Wednesday accused Facebook-parent Meta of violating its landmark $5 billion privacy settlement and called for toughening up restrictions on the company, after alleging Meta has improperly shared user data with third parties and failed to protect children as it has promised.

    The proposal to update the binding 2020 settlement with Meta marks a new front in the FTC’s long-running battle with the social media company, which has included multiple lawsuits aimed at breaking up the tech giant or preventing it from growing larger.

    The FTC said Meta should be banned from monetizing data it collects from younger users. It added that the company should be barred from releasing any new features or products until a third-party auditor determines the company’s privacy policies do enough to protect users. It also called for new limitations on how Meta can use facial recognition technology.

    If approved, the sweeping proposal could threaten the future of Meta’s business, including its expansion into virtual reality.

    In a statement on Wednesday, Meta spokesman Andy Stone called the FTC proposal “a political stunt” and vowed to contest the effort.

    “Despite three years of continual engagement with the FTC around our agreement, they provided no opportunity to discuss this new, totally unprecedented theory,” Stone said. “FTC Chair Lina Khan’s insistence on using any measure – however baseless – to antagonize American business has reached a new low.”

    The FTC proposal comes as policymakers at all levels of government have increasingly blamed social media for furthering a mental health crisis among young people, prompting calls for strict regulations on how tech platforms can use the personal information of users under 18, target them with automated recommendations or seek to boost their engagement in other ways. Many of those proposals have taken the form of broad-based legislation, but the FTC proposal would represent a novel approach by amending a past consent order in connection with a single company that influences more than a billion users.

    As part of the FTC’s call for changes, the agency said Meta had misled the public about its compliance with the historic settlement that resolved allegations surrounding the Cambridge Analytica data fiasco, as well as prior agreements with the agency.

    Meta had allowed personal information to leak to apps that users of the platform were no longer using, the FTC alleged. That data sharing, the FTC claimed, contrasted with Meta’s public statements about how it cuts off a third-party app’s access to Facebook users’ information if the users stop using the third-party app for 90 days.

    The FTC also alleged that multiple coding errors in a messaging app marketed to children, Messenger Kids, allowed users to connect to “unapproved contacts” in group video calls, and that the flaws went unresolved for weeks.

    Those flaws meant parents could not control who their kids were speaking to on the app, in contrast to claims by Meta that they could, according to the FTC.

    In addition to being a breach of Meta’s prior settlements, the alleged violations surrounding Messenger Kids also ran afoul of a federal children’s privacy law known as COPPA, the FTC said, because parents were not provided an opportunity to give Meta their consent before the company collected information on their kids.

    Meta will have 30 days to respond to the proposed findings and changes, the FTC said, before the commission votes to finalize them. The FTC can unilaterally approve updates to the settlement, but Meta would have the opportunity to appeal that move in federal court, according to an agency fact sheet.

    The FTC voted 3-0 to issue the proposed findings and changes, but one commissioner, Alvaro Bedoya, questioned whether the agency has the authority to impose such sweeping restrictions on Meta in light of the alleged violations.

    In a statement, Bedoya said he was skeptical whether there was enough of a connection between Meta’s alleged harms and the proposed remedies to legally sustain a complete ban on monetizing the data of young users.

    “I look forward to hearing additional information and arguments and will consider these issues with an open mind,” Bedoya said.

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

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

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    CNN
     — 

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

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

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

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

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

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

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

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

    But that’s a big if.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  • Meta lowers the minimum age for its Quest headsets from 13 to 10 | CNN Business

    Meta lowers the minimum age for its Quest headsets from 13 to 10 | CNN Business

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    New York
    CNN
     — 

    Facebook-parent Meta plans to lower the minimum age for its virtual reality headsets from 13 years old to 10 years old, despite pressure from lawmakers not to market its VR services to younger users.

    Parents will be able to set up accounts for children as young as 10 years old on Meta’s Quest 2 and Quest 3 headsets starting later this year, the company said in a blog post Friday.

    Preteens will be required to get a parent’s approval to set up an account and download apps onto the device, according to the company. Meta said it will also use children’s ages to “provide age-appropriate experiences” such as recommending suitable apps.

    “There’s a vast array of engaging and educational apps, games, and more across our platform, the majority of which are rated for ages 10 and up,” Meta said in the post.

    The company’s push to lower the minimum age comes as Meta and other social media companies face growing scrutiny over their impact on young users, including their potential to harm teens’ mental health or lead them down harmful content rabbit holes.

    Parents and lawmakers have also specifically raised alarms about the use of VR — and the future version of the internet Meta calls the “metaverse” — by teens and children.

    Earlier this year, two Democratic senators urged Meta to suspend a plan to offer Horizon Worlds, the company’s flagship VR app, to teens between the ages of 13 and 17, arguing the technology could harm young users’ physical and mental health. The lawmakers, Massachusetts Sen. Ed Markey and Connecticut Sen. Richard Blumenthal, called Meta’s plan “unacceptable” in light of the company’s “record of failure to protect children and teens,” in a letter to CEO Mark Zuckerberg.

    But in April, Meta forged ahead with its plan to allow teens as young as 13 in the United States and Canada to use Horizon Worlds, prompting additional outcry from lawmakers and civil society groups.

    Parents told CNN last year about instances of discovering their children were viewing violent and disturbing content in VR and struggling to come up with ways to keep their kids safe.

    Meta is attempting to address some of parents’ concerns.

    In its Friday blog post, Meta said parents will be able to set time limits and enforce breaks for their preteens on the headsets. The accounts of users under 13 will be set to private and have their active status hidden on apps by default unless parents choose to change those settings. Meta also makes it possible to cast content from its VR headsets to a TV or phone screen, so parents can watch what their kids are seeing.

    Meta said it will not serve ads to users in this age group, and that parents can choose whether their child’s data can be used to improve the company’s services. Meta added on Friday that Horizon Worlds will remain restricted to users 13 and older in the United States and Canada (and 18 and older in Europe) when it allows preteens to create parent-manged accounts on the headsets later this year.

    Meta’s headset and Horizon Worlds represent Zuckerberg’s vision for a next-generation internet, where users can interact with each other in virtual spaces resembling real life. The company has so far struggled to attract a mainstream audience for these products.

    Update: This story has been updated to reflect Meta’s plan to continue restricting Horizon Worlds to users 13 and older.

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  • TSMC confirms supplier data breach following ransom demand by Russian-speaking cybercriminal group | CNN Business

    TSMC confirms supplier data breach following ransom demand by Russian-speaking cybercriminal group | CNN Business

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    CNN
     — 

    Taiwanese semiconductor giant TSMC confirmed Friday that one of its hardware suppliers was hacked and had data stolen from it, but said the incident had no impact on business operations.

    Confirmation of the breach came after Russian-speaking cybercriminals claimed TSMC as a victim on Thursday and demanded an extraordinary $70 million ransom from the semiconductor firm.

    There were no signs that TSMC or the hardware supplier, Taiwanese firm Kinmax, had any plans to pay the hackers (representatives from both companies didn’t respond to CNN’s questions about any ransom).

    TSMC — one of the world’s largest chipmakers and a key supplier to Apple

    (AAPL)     — was quick to assure investors and the public that the hack had no impact on its operations and that it did not compromise its customers’ data.

    “After the incident, TSMC has immediately terminated its data exchange with this concerned supplier in accordance with the Company’s security protocols and standard operating procedures,” TSMC said in a statement to CNN.

    The hackers accessed Kinmax’s internal “testing environment” for the technology it prepares to deliver to customers, Kinmax said in a statement distributed by TSMC.

    “The leaked content mainly consisted of system installation preparation that the Company provided to our customers as default configurations,” Kinmax said. The company apologized to customers whose names may show up in the leaked data.

    Ransomware groups are known to exaggerate the value of the data they steal and make outlandish demands that are never met.

    LockBit is the name of the group claiming responsibility for the hack of the TSMC supplier and the type of ransomware they use. LockBit ransomware was the most deployed ransomware around the world in 2022, according to US cybersecurity officials.

    Jon DiMaggio, an executive at security firm Analyst1 who has studied LockBit extensively, said the hackers will likely publish the stolen data or sell it if TSMC refuses to negotiate a ransom.

    For years, American officials and Taiwanese cybersecurity experts have looked to fortify the island’s infrastructure in the face of hacking threats.

    Taiwan’s chip industry is critical to the global hardware supply chain, making any potentially impactful cyberattacks on it a concern for government officials and business executives around the world.

    While the TSMC-related hacking incident doesn’t appear to have been impactful, a separate ransomware attack in 2020 on Taiwan’s state-run energy company temporarily disrupted some customers’ ability to pay for gas with company cards, according to local media reports at the time.

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  • Sarah Silverman sues OpenAI and Meta alleging copyright infringement | CNN Business

    Sarah Silverman sues OpenAI and Meta alleging copyright infringement | CNN Business

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    CNN
     — 

    Comedian Sarah Silverman and two authors are suing Meta and ChatGPT-maker OpenAI, alleging the companies’ AI language models were trained on copyrighted materials from their books without their knowledge or consent.

    The pair of lawsuits against OpenAI and Facebook-parent Meta were filed in a San Francisco federal court on Friday, and are both seeking class action status. Silverman, the author of “The Bedwetter,” is joined in filing the lawsuits by fellow authors Christopher Golden and Richard Kadrey.

    A new crop of AI tools has gained tremendous attention in recent months for their ability to generate written work and images in response to user prompts. The large language models underpinning these tools are trained on vast troves of online data. But this practice has raised some concerns that these models may be sweeping up copyrighted works without permission – and that these works could ultimately be served to train tools that upend the livelihoods of creatives.

    The complaint against OpenAI claims that “when ChatGPT is prompted, ChatGPT generates summaries of Plaintiffs’ copyrighted works—something only possible if ChatGPT was trained on Plaintiffs’ copyrighted works.” The authors “did not consent to the use of their copyrighted books as training material for ChatGPT,” according to the complaint.

    The complaint against Meta similarly claims that the company used the authors’ copyrighted books to train LLaMA, the set of large language models released by Meta in February. The suit claims that much of the material used to train Meta’s language models “comes from copyrighted works—including books written by Plaintiffs—that were copied by Meta without consent, without credit, and without compensation.”

    The suit against Meta also alleges that the company accessed the copyrighted books via an online “shadow library” website that includes a large quantity of copyrighted material.

    Meta declined to comment on the lawsuit. OpenAI did not immediately respond to a request for comment.

    The legal action from Silverman isn’t the first to focus on how large language models are trained. A separate lawsuit filed against OpenAI last month alleged the company misappropriated vast swaths of peoples’ personal data from the internet to train its AI tools. (OpenAI did not respond to a request for comment on the suit.)

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

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

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  • WhatsApp unveils new video messaging feature | CNN Business

    WhatsApp unveils new video messaging feature | CNN Business

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    CNN
     — 

    WhatsApp will now let you record and send video clips directly in the messaging app, the Meta-owned platform announced this week.

    The instant video messages can be up to 60 seconds long, and are similarly protected with the app’s end-to-end encryption service.

    “We think these will be a fun way to share moments with all the emotion that comes from video, whether it’s wishing someone a happy birthday, laughing at a joke, or bringing good news,” the company said Thursday in a blog post.

    The new feature will be similar to sending a voice message on the platform, the company added, and there will also be a way to record the video hands-free.

    The company said the new update has begun rolling out on the app and will be available to everyone in the coming weeks.

    Earlier this year, WhatsApp rolled out an update that lets users edit messages in the app (as long as it’s within 15 minutes after sending).

    The latest product update for WhatsApp comes on the heels of a better-than-expected earnings report from Meta. The company said Wednesday that revenue surged 11% year-over-year to $32 billion for its quarter ending in June, as CEO Mark Zuckerberg’s “year of efficiency” appears to be paying off for the social media giant.

    After a bruising 2022, shares of Meta stock have jumped more than 150% in 2023.

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  • The FTC should investigate OpenAI and block GPT over ‘deceptive’ behavior, AI policy group claims | CNN Business

    The FTC should investigate OpenAI and block GPT over ‘deceptive’ behavior, AI policy group claims | CNN Business

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    Washington
    CNN
     — 

    An AI policy think tank wants the US government to investigate OpenAI and its wildly popular GPT artificial intelligence product, claiming that algorithmic bias, privacy concerns and the technology’s tendency to produce sometimes inaccurate results may violate federal consumer protection law.

    The Federal Trade Commission should prohibit OpenAI from releasing future versions of GPT, the Center for AI and Digital Policy (CAIDP) said Thursday in an agency complaint, and establish new regulations for the rapidly growing AI sector.

    The complaint seeks to bring the full force of the FTC’s broad consumer protection powers to bear against what CAIDP portrayed as a Wild West of runaway experimentation in which consumers pay for the unintended consequences of AI development. And it could prove to be an early test of the US government’s appetite for directly regulating AI, as tech-skeptic officials such as FTC Chair Lina Khan have warned of the dangers of unchecked data use for commercial purposes and of novel ways that tech companies may try to entrench monopolies.

    The FTC declined to comment. OpenAI didn’t immediately respond to a request for comment.

    “We believe that the FTC should look closely at OpenAI and GPT-4,” said Marc Rotenberg, CAIDP’s president and a longtime consumer protection advocate on technology issues.

    The complaint attacks a range of risks associated with generative artificial intelligence, which has captured the world’s attention after OpenAI’s ChatGPT — powered by an earlier version of the GPT product — was first released to the public late last year. Everyday internet users have used ChatGPT to write poetry, create software and get answers to questions, all within seconds and with surprising sophistication. Microsoft and Google have both begun to integrate that same type of AI into their search products, with Microsoft’s Bing running on the GPT technology itself.

    But the race for dominance in a seemingly new field has also produced unsettling or simply flat-out incorrect results, such as confident claims that Feb. 12, 2023 came before Dec. 16, 2022. In industry parlance, these types of mistakes are known as “AI hallucinations” — and they should be considered legally enforceable violations, CAIDP argued in its complaint.

    “Many of the problems associated with GPT-4 are often described as ‘misinformation,’ ‘hallucinations,’ or ‘fabrications.’ But for the purpose of the FTC, these outputs should best be understood as ‘deception,’” the complaint said, referring to the FTC’s broad authority to prosecute unfair or deceptive business acts or practices.

    The complaint acknowledges that OpenAI has been upfront about many of the limitations of its algorithms. For example, the white paper linked to GPT’s latest release, GPT-4, explains that the model may “produce content that is nonsensical or untruthful in relation to certain sources.” OpenAI also makes similar disclosures about the possibility that tools like GPT can lead to broad-based discrimination against minorities or other vulnerable groups.

    But in addition to arguing that those outcomes themselves may be unfair or deceptive, CAIDP also alleges that OpenAI has violated the FTC’s AI guidelines by trying to offload responsibility for those risks onto its clients who use the technology.

    The complaint alleges that OpenAI’s terms require news publishers, banks, hospitals and other institutions that deploy GPT to include a disclaimer about the limitations of artificial intelligence. That does not insulate OpenAI from liability, according to the complaint.

    Citing a March FTC advisory on chatbots, CAIDP wrote: “Recently [the] FTC stated that ‘Merely warning your customers about misuse or telling them to make disclosures is hardly sufficient to deter bad actors. Your deterrence measures should be durable, built-in features and not bug corrections or optional features that third parties can undermine via modification or removal.’”

    Artificial intelligence also stands to have vast implications for consumer privacy and cybersecurity, said CAIDP, issues that sit squarely within the FTC’s jurisdiction but that the agency has not studied in connection with GPT’s inner workings.

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  • White House unveils an AI plan ahead of meeting with tech CEOs | CNN Business

    White House unveils an AI plan ahead of meeting with tech CEOs | CNN Business

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    CNN
     — 

    The White House on Thursday announced a series of measures to address the challenges of artificial intelligence, driven by the sudden popularity of tools such as ChatGPT and amid rising concerns about the technology’s potential risks for discrimination, misinformation and privacy.

    The US government plans to introduce policies that shape how federal agencies procure and use AI systems, the White House said. The step could significantly influence the market for AI products and control how Americans interact with AI on government websites, at security checkpoints and in other settings.

    The National Science Foundation will also spend $140 million to promote research and development in AI, the White House added. The funds will be used to create research centers that seek to apply AI to issues such as climate change, agriculture and public health, according to the administration.

    The plan comes the same day that Vice President Kamala Harris and other administration officials are expected to meet with the CEOs of Google, Microsoft, ChatGPT-creator OpenAI and Anthropic to emphasize the importance of ethical and responsible AI development. And it coincides with a UK government inquiry launched Thursday into the risks and benefits of AI.

    “Tech companies have a fundamental responsibility to make sure their products are safe and secure, and that they protect people’s rights before they’re deployed or made public,” a senior Biden administration official told reporters on a conference call.

    Officials cited a range of risks the public faces in the widespread adoption of AI tools, including the possible use of AI-created deepfakes and misinformation that could undermine the democratic process. Job losses linked to rising automation, biased algorithmic decision-making, physical dangers arising from autonomous vehicles and the threat of AI-powered malicious hackers are also on the White House’s list of concerns.

    It’s just the latest example of the federal government acknowledging concerns from the rapid development and deployment of new AI tools, and trying to find ways to address some of the risks.

    Testifying before Congress, members of the Federal Trade Commission have argued AI could “turbocharge” fraud and scams. Its chair, Lina Khan, wrote in a New York Times op-ed this week that the US government has ample existing legal authority to regulate AI by leaning on its mandate to protect consumers and competition.

    Last year, the Biden administration unveiled a proposal for an AI Bill of Rights calling for developers to respect the principles of privacy, safety and equal rights as they create new AI tools.

    Earlier this year, the Commerce Department released voluntary risk management guidelines for AI that it said could help organizations and businesses “govern, map, measure and manage” the potential dangers in each part of the development cycle. In April, the Department also said it is seeking public input on the best policies for regulating AI, including through audits and industry self-regulation.

    The US government isn’t alone in seeking to shape AI development. European officials anticipate hammering out AI legislation as soon as this year that could have major implications for AI companies around the world.

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  • Fertility app fined $200,000 for leaking customer’s health data | CNN Business

    Fertility app fined $200,000 for leaking customer’s health data | CNN Business

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    CNN
     — 

    The company behind a popular fertility app has agreed to pay $200,000 in federal and state fines after authorities alleged that it had shared users’ personal health information for years without their consent, including to Google and to two companies based in China.

    The app, known as Premom, will also be banned from sharing personal health information for advertising purposes and must ensure that the data it shared without users’ consent is deleted from third-party systems, according to the Federal Trade Commission, along with the attorneys general of Connecticut, the District of Columbia and Oregon.

    Wednesday’s proposed settlement targeting Premom highlights how regulators have stepped up their scrutiny of fertility trackers and health information in the wake of the US Supreme Court’s decision last year striking down federal protections for abortion.

    The sharing of personal data allegedly affected Premom’s hundreds of thousands of users from at least 2018 until 2020, and violated a federal regulation known as the Health Breach Notification Rule, according to an FTC complaint against Easy Healthcare, Premom’s parent company.

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

    As part of the alleged violation, Premom collected and shared personally identifiable health information with Google and with a third-party marketing firm in violation of Premom’s own privacy policy, which had promised to share only “non-identifiable data” with others, according to the complaint.

    In addition, Premom allegedly shared location information and device identifiers — such as WiFi network names and hardware IDs — with two China-based data analytics companies, known as Jiguang and Umeng, according to the complaint. That information, the FTC alleged, “could be used to identify Premom’s users and disclose to third parties that these users were utilizing a fertility app,” according to an FTC complaint filed against Easy Healthcare, Premom’s parent company.

    Since the Supreme Court’s decision in Dobbs v. Jackson, a wave of anti-abortion legislation has raised the prospect that fertility apps, search engines and other technology platforms could be forced to hand over user data in potential prosecutions of abortion-seekers.

    “Now more than ever, with reproductive rights under attack across the country, it is essential that the privacy of healthcare decisions is vigorously protected,” said DC Attorney General Brian Schwalb in a statement. “My office will continue to make sure companies protect consumers’ personal information to protect against unlawful encroachment on access to effective reproductive healthcare.”

    Samuel Levine, director of the FTC’s consumer protection bureau, said the agency “will not tolerate health privacy abuses.”

    “Premom broke its promises and compromised consumers’ privacy,” Levine said in a statement. “We will vigorously enforce the Health Breach Notification Rule to defend consumer’s health data from exploitation.”

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  • This could be Apple’s biggest product launch since the Apple Watch | CNN Business

    This could be Apple’s biggest product launch since the Apple Watch | CNN Business

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    CNN
     — 

    Apple may be just one day away from unveiling its most ambitious new hardware product in years.

    At its Worldwide Developers Conference, which kicks off Monday at its Cupertino, California, campus, Apple

    (AAPL)     is widely expected to introduce a “mixed reality” headset that offers both virtual reality and augmented reality, a technology that overlays virtual images on live video of the real world.

    The highly anticipated release of an AR/VR headset would be Apple’s biggest hardware product launch since the debut of the Apple Watch in 2015. It could signal a new era for the company and potentially revolutionize how millions interact with computers and the world around them.

    But the headset is just one of many announcements expected at the developers event. Apple will also show off a long list of software updates that will shape how people use its most popular devices, including the iPhone and Apple Watch.

    Apple may also tease how it plans to incorporate AI into more of its products and services, and keep pace with a renewed arms race over the technology in Silicon Valley.

    The event will be livestreamed on Apple’s website and YouTube. It is set to start at 10:00 a.m. PT/1:00 p.m. ET.

    Here’s a closer look at what to expect:

    For years, Apple CEO Tim Cook has expressed interest in augmented reality. Now Apple finally appears ready to show off what it’s been working on.

    According to Bloomberg, the new headset, which could be called Reality One or Reality Pro, will have an iOS-like interface, display immersive video and include cameras and sensors to allow users to control it via their hands, eye movements and with Siri. The device is also rumored to have an outward-facing display that will show eye movements and facial expressions, allowing onlookers to interact with the person wearing the headset without feeling as though they’re talking to a robot.

    Apple’s new headset is expected to pack apps for gaming, fitness and meditation, and offer access to iOS apps such as Messages, FaceTime and Safari, according to Bloomberg. With the FaceTime option, for example, the headset will “render a user’s face and full body in virtual reality,” to create the feeling that both are “in the same room.”

    The decision to unveil it at WWDC suggests Apple wants to encourage developers to build apps and experiences for the product in order to make it more compelling for customers and worth the hefty price tag.

    The company is reportedly considering a $3,000 price tag for the device, far more than most of its products and testing potential buyers at a time of lingering uncertainty in the global economy. Other tech companies have struggled to find mainstream traction for headsets. And in the years that Apple has been rumored to be working on the product, the tech community has shifted its focus from VR to another buzzy technology: artificial intelligence.

    But if any company can prove skeptics wrong, it’s Apple. The company’s entry into the market combined with its vast customer base has the potential to breathe new life into the world of headsets.

    A mixed reality headset may not be the only piece of hardware to get stage time this year.

    Apple is expected to launch a new 15-inch MacBook Air packing the company’s M2 processor. The current size of the MacBook Air is 13 inches.

    Previously, users who wanted a larger-sized Apple laptop would need to buy a higher-end MacBook Pro.

    Considering WWDC is traditionally a software event, Apple executives will likely spend much of the time highlighting the changes and upgrades coming to its next-generation mobile operating systems, iOS 17 and iPadOS 17.

    While last year’s updates included a major design overhaul of the lock screen and iMessage, only minor changes are expected this year.

    With iOS 17, Apple is expected to double down on its efforts around health tracking by adding the ability to monitor everything from a user’s mood to keeping tabs on how their vision may change over time. According to the Wall Street Journal, Apple will also launch a journaling app not only as a way for users to log their thoughts but also activity levels, which can then be analyzed to reveal how much time someone spends at home or out of the house.

    The new iOS 17 is also said to get a lock screen refresh: When positioned in horizontal mode, the display will highlight widgets tied to the calendar, weather and other apps, serving as a digital hub. (iPadOS 17 is also expected to get some of the same lock screen capabilities and health features.)

    Other anticipated upgrades include an Apple Watch OS update that would focus on quick glances at widgets, and more details about its next-generation CarPlay platform, which it initially teased last year.

    While much of the focus of the event may be on VR, Apple may also attempt to show how it’s keeping pace with Silicon Valley’s current obsession: artificial intelligence.

    Apple reportedly plans to preview an AI-powered digital coaching service, which will encourage people to exercise and improve their sleeping and eating habits. It’s unclear how it could work, but the effort comes at a time when Big Tech companies are racing to introduce AI-powered technologies in the wake of ChatGPT’s viral success.

    Apple may also demo and expand on some of its recently teased accessibility tools for the iPhone and iPad, including a feature that promises to replicate a user’s voice for phone calls after only 15 minutes of training.

    Most of the other Big Tech companies have recently outlined their AI strategies. This event may be Apple’s chance to do the same.

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  • Biden kicks off reelection bid with union rally in Philadelphia | CNN Politics

    Biden kicks off reelection bid with union rally in Philadelphia | CNN Politics

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    CNN
     — 

    President Joe Biden kicked off his reelection campaign Saturday at a union rally in his frequent haunt of Pennsylvania, the state that remains an intersection of his personal and political identities that he hopes can propel him to a second term.

    The first official rally of his final political campaign was a moment for Biden to underscore recent economic wins that undergird his argument for another four years in the White House.

    “Just think back. Remember what it was like when I came to office, we came into office. Remember the mess we inherited,” Biden told the audience in Philadelphia. “Now look at where we are today.”

    To a roaring crowd, who repeatedly cheered “four more years,” the president touted several accomplishments, including the bipartisan infrastructure law, a coronavirus relief package, a bipartisan semiconductor chip manufacturing law and the recently negotiated debt ceiling deal that helped avert a US default.

    Biden also criticized recent Republican tax proposals while describing what he called his middle-class vision for the American economy, referring to it several times as “Biden-omics.”

    Biden made only brief mention of Donald Trump, the current front-runner for the 2024 GOP presidential nomination, steering clear of the former president’s recent federal indictment and arraignment but hitting him on infrastructure.

    “Under my predecessor, infrastructure week became a punchline,” Biden said. “On my watch, we’re making infrastructure a decade headline.”

    First lady Jill Biden, who spoke shortly before her husband, highlighted the president’s optimism. Wearing a corsage to mark their 46th wedding anniversary Saturday, the first lady recalled how she met Biden following the death of his first wife and baby daughter in a tragic car accident that also injured his two sons.

    “What I love about Joe is that even though he has faced unimaginable tragedies, his optimism is undaunted,” Jill Biden said. “His strength is unshakeable.”

    She added that the president was “not done.”

    “He’s ready to finish the job,” she said. “He’s ready to win, and with your help, he will.”

    Though his economic wins were the centerpiece of Biden’s opening campaign event, polls show many voters give him poor marks for his handling of the economy, particularly as prices have soared post-pandemic. Recent figures have shown inflation easing, however, and fears of an imminent recession have faded.

    Biden has said more Americans will come to reward him for his economic stewardship once the benefits of some of his signature legislative achievements, including a new infrastructure law, begin taking hold.

    Labor groups that threw their backing behind Biden ahead of his speech include the AFL-CIO, which said it was the earliest point in a presidential election cycle it had ever endorsed a candidate.

    “There’s absolutely no question that Joe Biden is the most pro-union president in our lifetimes,” said AFL-CIO President Liz Shuler. “From bringing manufacturing jobs home to America to protecting our pensions and making historic investments in infrastructure, clean energy and education, we’ve never seen a president work so tirelessly to rebuild our economy from the bottom up and middle out.”

    Supporters cheer before Biden speaks at the Pennsylvania Convention Center.

    Biden, who made his first stop after announcing his reelection bid a legislative conference for North America’s Building Trades Unions in Washington, has long relied on union support for his political ambitions.

    “I’m more honored by your endorsement than you can imagine – coming this early, it’s going to make a gigantic difference in this campaign,” Biden said during Saturday’s event in Philadelphia, where he called himself “the most pro-union president in American history.”

    Not all unions have thrown their support behind Biden’s reelection bid. The powerful United Auto Workers said last month it was holding off on endorsing Biden, citing concerns over his policies that would encourage a transition to electric vehicles, according to a memo from the union.

    The UAW has more than 400,000 members, and Biden has touted its support in the past. Last year he called American autoworkers “the most skilled autoworkers in the world.” The group’s membership is mostly concentrated in Michigan, a presidential election battleground.

    Biden also rankled union members last year when he signed legislation that averted a nationwide rail strike – a step he said was necessary to prevent a stoppage of important freight movement.

    Biden’s campaign has leaned into his economic record, including releasing a 60-second ad titled “Backbone” last month. The spot struck a populist tone, mixing audio of the president speaking about “investing in places and people that have been forgotten” and a narrator ticking through the administration’s work to boost infrastructure and manufacturing in the country.

    “Joe Biden’s building an economy that leaves no city, no town, no American behind,” the narrator says.

    This story has been updated with additional information.

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  • AI is already linked to layoffs in the industry that created it | CNN Business

    AI is already linked to layoffs in the industry that created it | CNN Business

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    CNN
     — 

    Many have raised alarms about the potential for artificial intelligence to displace jobs in the years ahead, but it’s already causing upheaval in one industry where workers once seemed invincible: tech.

    A small but growing number of tech firms have cited AI as a reason for laying off workers and rethinking new hires in recent months, as Silicon Valley races to adapt to rapid advances in the technology being developed in its own backyard.

    Chegg, an education technology company, disclosed in a regulatory filing last month that it was cutting 4% of its workforce, or about 80 employees, “to better position the Company to execute against its AI strategy and to create long-term, sustainable value for its students and investors.”

    IBM CEO Arvind Krishna said in an interview with Bloomberg in May that the company expects to pause hiring for roles it thinks could be replaced with AI in the coming years. (In a subsequent interview with Barrons, however, Krishna said that he felt his earlier comments were taken out of context and stressed that “AI is going to create more jobs than it takes away.”)

    And in late April, file-storage service Dropbox said that it was cutting about 16% of its workforce, or about 500 people, also citing AI.

    In its most-recent layoffs report, outplacement firm Challenger, Gray & Christmas said 3,900 people were laid off in May due to AI, marking its first time breaking out job cuts based on that factor. All of those cuts occurred in the tech sector, according to the firm.

    With these moves, Silicon Valley may not only be leading the charge in developing AI but also offering an early glimpse into how businesses may adapt to those tools. Rather than render entire skill sets obsolete overnight, as some might fear, the more immediate impact of a new crop of AI tools appears to be forcing companies to shift resources to better take advantage of the technology — and placing a premium on workers with AI expertise.

    “Over the last few months, AI has captured the world’s collective imagination, expanding the potential market for our next generation of AI-powered products more rapidly than any of us could have anticipated,” Dropbox CEO Drew Houston wrote in a note to staff announcing the job cuts. “Our next stage of growth requires a different mix of skill sets, particularly in AI and early-stage product development.”

    In response to a request for comment on how its realignment around AI is playing out, Dropbox directed CNN to its careers page, where it is currently hiring for multiple roles focused on “New AI Initiatives.”

    Dan Wang, a professor at Columbia Business School, told CNN that AI “will cause organizations to restructure,” but also doesn’t see it playing out as machines replacing humans just yet.

    “AI, as far as I see it, doesn’t necessarily replace humans, but rather enhances the work of humans,” Wang said. “I think that the kind of competition that we all should be thinking more about is that human specialists will be replaced by human specialists who can take advantage of AI tools.”

    The AI-driven tech layoffs come amid broader cuts in the industry. Many tech companies have been readjusting to an uncertain economic environment and waning levels of demand for digital services more than three years into the pandemic.

    Some 212,294 workers in the tech industry have been laid off in 2023 alone, according to data tracked by Layoffs.fyi, already surpassing the 164,709 recorded in 2022.

    But in the shadow of those mass layoffs, the tech industry has also been gripped by an AI fervor and invested heavily in AI talent and tech.

    In January, just days after Microsoft announced plans to lay off 10,000 employees as part of broader cost-cutting measures, the company also confirmed it was making a “multibillion dollar” investment into OpenAI, the company behind ChatGPT. And in March, in the same letter to staff Mark Zuckerberg used to announce plans to lay off another 10,000 workers (after cutting 11,000 positions last November), the Meta CEO also outlined plans for investing heavily in AI.

    Even software engineers in Silicon Valley who once seemed uniquely in demand now appear to be at risk of losing their jobs, or losing out on salary gains to those with more AI expertise.

    Roger Lee, a startup founder who has been tracking tech industry layoffs via his website Layoffs.fyi, also runs Comprehensive.io, which examines job listings and compensation data across some 3,000 tech companies.

    Lee told CNN that a recent analysis of data from Comprehensive.io shows the average salary for a senior software engineer specializing in artificial intelligence or machine learning is 12% higher than for those who don’t specialize in that area, a data point he dubs “the AI premium.” The average salary for a senior software engineer specializing in AI or machine learning has also increased by some 4% since the beginning of the year, whereas the average salary for senior software engineers as a whole has stayed flat, he said.

    Lee noted Dropbox as an example of a company offering notably high pay for AI roles, citing a base salary listing of $276,300 to $373,800 for a Principal Machine Learning Engineer role. (By comparison, Comprehensive.io’s data puts the current average salary for a senior software engineer at $171,895.)

    Those looking to thrive in the tech industry and beyond may need to brush up on their AI skills.

    Wang, the professor at Columbia Business School, told CNN that starting this past spring semester, he began requiring his students to familiarize themselves with the new crop of generative AI tools on the market. “That type of exposure I think is absolutely critical for setting themselves up for success and once they graduate,” Wang said.

    It’s not that everyone needs to become AI specialists, Wang added, but rather that workers should know how to use AI tools to become more efficient at whatever they’re doing.

    “That’s where the kind of a battleground for talent is really shifting,” Wang said, “as differentiation in terms of talent comes from creative and effective ways to integrate AI into daily tasks.”

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

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

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    Hong Kong
    CNN
     — 

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

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

    Wipro

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

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

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

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

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

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

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  • Meta’s Threads gets a highly requested ‘following feed’ | CNN Business

    Meta’s Threads gets a highly requested ‘following feed’ | CNN Business

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    New York
    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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  • Japan joins the US and Europe in chipmaking curbs on China | CNN Business

    Japan joins the US and Europe in chipmaking curbs on China | CNN Business

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    Hong Kong/Tokyo
    CNN
     — 

    Japan will restrict the overseas sale of chip manufacturing equipment, joining the United States and the Netherlands in curbing the export of key technology to China.

    The country announced Friday it would tighten exports of 23 types of advanced semiconductor manufacturing equipment.

    The rules will take effect in July, according to Japan’s minister of economy, trade and industry, Yasutoshi Nishimura.

    The ministry said it would require stricter procedures to export to about 160 destinations such as China, while 42 territories — including the United States, South Korea and Taiwan — are recognized by Japan as having adequate export controls in place.

    All exports to countries not formally recognized will now require approval from the Japanese trade ministry, it added.

    At a press conference, Nishimura said the new measures were aimed at preventing the equipment from being diverted for military use.

    “We will fulfill our responsibilities in the international community as a technology-owning country and contribute to maintaining international peace and security,” he told reporters.

    The restrictions are not aimed at a specific country, the trade ministry told CNN on Friday.

    But they follow a series of curbs enacted in recent months to clamp down on sales of chipmaking equipment to China as part of a coordinated international effort led by Washington.

    In October, the United States banned Chinese companies from buying advanced chips and chipmaking equipment without a license. It also restricted the ability of American citizens to provide support for the development or production of chips at certain facilities in China.

    Earlier this month, the Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, citing the need to protect national security.

    Japan has been involved in three-way discussions with both countries, a source familiar with the talks previously told CNN.

    China has strongly criticized restrictions on tech exports, saying earlier this month that it “firmly opposes” such measures.

    Mao Ning, a Chinese foreign ministry spokesperson, also hit back at the latest move from Japan.

    “Weaponizing economic, trade and technology issues to deliberately destabilize the global industry chain will only harm others and harm oneself,” she said at a Friday news briefing.

    Japan is home to several chipmaking equipment producers, including Nikon

    (NINOY)     and Tokyo Electron. The companies’ shares in Tokyo were little changed on Friday.

    Nikon and Tokyo Electron declined to comment.

    In recent reports to clients, Jefferies analysts had assessed the potential consequences of Japanese export controls to China, noting that Nikon did “not anticipate a major impact.”

    For Tokyo Electron, the tightening is also “unlikely to have much additional impact as long as they do not go further than the US sanctions,” they added.

    — Mengchen Zhang contributed to this report.

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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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  • A key safety executive at TikTok is leaving as lawmakers keep pressure on the app | CNN Business

    A key safety executive at TikTok is leaving as lawmakers keep pressure on the app | CNN Business

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    New York
    CNN
     — 

    TikTok is about to lose a key safety executive as the app faces growing pressure from lawmakers and threats of a ban in the United States.

    TikTok’s Head of US Data Security Trust and Safety Eric Han is set to leave the company next week. His departure was confirmed to CNN by TikTok spokesperson Maureen Shanahan. The news was first reported Tuesday by The Verge.

    In the role, which he has held since 2019, Han led policy decisions such as those aimed at reducing the spread of dangerous challenges and cracking down on paid political posts by influencers. The position will be temporarily filled by Andy Bonillo, TikTok’s interim general manager of US data security, until a permanent replacement is found, Shanahan said.

    With the move, TikTok will lose a key safety leader at a difficult moment for the platform. US lawmakers in recent months have ramped up calls for a nationwide ban of the app over concerns that its parent company ByteDance’s connections to China could pose a national security risk to the United States.

    TikTok confirmed in March that federal officials have demanded that the app’s Chinese owners sell their stake in the social media platform, or risk facing a US ban of the app. And last month, Montana lawmakers approved legislation to ban TikTok on personal devices, which would make it the first state to do so, assuming the bill is signed by the state’s governor.

    TikTok CEO Shou Chew testified before Congress in March and attempted to reassure lawmakers about the safety of the app and the security of US users’ data.

    TikTok did not respond to a question about the reason for Han’s departure.

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