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  • Meet your new AI tutor | CNN Business

    Meet your new AI tutor | CNN Business

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    CNN
     — 

    Artificial intelligence often induces fear, awe or some panicked combination of both for its impressive ability to generate unique human-like text in seconds. But its implications for cheating in the classroom — and its sometimes comically wrong answers to basic questions — have left some in academia discouraging its use in school or outright banning AI tools like ChatGPT.

    That may be the wrong approach.

    More than 8,000 teachers and students will test education nonprofit Khan Academy’s artificial intelligence tutor in the classroom this upcoming school year, toying with its interactive features and funneling feedback to Khan Academy if the AI botches an answer.

    The chatbot, Khanmigo, offers individualized guidance to students on math, science and humanities problems; a debate tool with suggested topics like student debt cancellation and AI’s impact on the job market; and a writing tutor that helps the student craft a story, among other features.

    First launched in March to an even smaller pilot program of around 800 educators and students, Khanmigo also allows students to chat with a growing list of AI-powered historical figures, from George Washington to Cleopatra and Martin Luther King Jr., as well as literary characters like Winnie the Pooh and Hamlet.

    Khan Academy’s Chief Learning Officer Kristen DiCerbo told CNN that Khanmigo helps address a problem she’s witnessed firsthand observing an Arizona classroom: that when students learn something new, they often need individualized help — more help than one teacher can provide all at once.

    As DiCerbo chatted with AI-powered Dorothy from “The Wonderful Wizard of Oz” during a demonstration of the technology to CNN, she explained how users can rate Khanmigo’s responses in real-time, providing feedback if and when Khanmigo makes mistakes.

    “There is going to be a big world out there where people can just get the answers to their homework problems, where they can just get an essay written for them. That’s true now too on the Internet,” DiCerbo said. “We’re trying to focus on the social good, but we need to be aware of the threats and the risks so that we know how to mitigate those.”

    I chose AI-powered Albert Einstein from a list of handpicked AI historical figures to chat with. AI-Einstein told me his greatest accomplishment was both his theory of relativity and inspiring curiosity in others, before tossing me a question Socrates-style about what sparks curiosity in my own life.

    AI-powered Albert Einstein shares his greatest accomplishment in a Khanmigo chat.

    Khanmigo developers programmed the AI figures not to comment on events after their lifetime. As such, AI-Einstein wouldn’t comment on the historical accuracy of his role in Christopher Nolan’s “Oppenheimer,” despite my asking.

    Khanmigo is trained not to comment on events that occur after the lifetime of the historical figure it is imitating.

    Some figures from the list are not as widely praised as Einstein. For instance, Thomas Jefferson, the third US president and primary draftsman of the Declaration of Independence, has faced renewed criticism in recent years for owning 600-plus enslaved people throughout his lifetime.

    Khanmigo’s Thomas Jefferson will not shy away from scrutiny. He wrote back to my inquiry about his views on slavery in part: “As Thomas Jefferson, my views on slavery were fraught with contradiction. On one hand, I publicly expressed my belief that slavery was morally wrong and a threat to the survival of the new American nation […] Yet I was a lifelong slaveholder, owning over 600 enslaved people throughout my lifetime.”

    The purpose of the tool is to engage students through conversation, DiCerbo said, an altogether different experience than passively reading about someone’s life on Wikipedia.

    “The Internet can be a pretty scary place, and it can be a pretty good place. I think that AI is the same,” DiCerbo said. “There could be potential bad uses and misuses, and it can be a pretty powerful learning tool.”

    After gaining early access to ChatGPT-creator OpenAI’s newest and most capable large language model, GPT-4, Khan Academy trained GPT-4 on its own learning content. The company also implemented guardrails to keep Khanmigo’s tone encouraging and prevent it from giving students the answer to the question they’re struggling with.

    For teachers, Khanmigo also offers assistance to create lesson plans and rubrics, identifies struggling students based on their performance in Khan Academy activities and gives teachers access to student chat history.

    “I’m learning new ways to solve the problems as well,” said Leo Lin, a science teacher at Khan Lab School in California and an early tester of Khanmigo. Khan Lab School is a separate nonprofit founded by Khan Academy CEO Sal Khan.

    Khanmigo has emerged at a crossroads in academia, with some educators leaning into generative AI and others recoiling. New York City Public Schools, Seattle Public Schools and the Los Angeles Unified School District, among other academic institutions, have all made efforts to either ban or restrict ChatGPT on district networks and devices in the past.

    A lack of information about AI may be exacerbating some educator worries: While 72% of K-12 teachers, principals and district leaders say that teaching students how to use AI tools is at least “fairly important,” 87% said they’ve received zero professional instruction about incorporating AI into their work, according to an EdWeek Research Center survey from June.

    Khan Academy’s in-the-works AI learning course “AI 101 for Teachers,” created in partnership with Code.org, ETS and the International Society for Technology in Education, offers a path toward AI literacy among teachers.

    Although Khanmigo is still in its pilot phase, the AI-powered teaching assistant is currently used by over 10,000 additional users across the United States beyond the pilot program. They agreed to pay a donation to Khan Academy to test the service.

    An AI “tutor” like Khanmigo is not immune to the flubs all large language models face: so-called hallucinations.

    “This is the main problem with this technology at the moment,” Ernest Davis, a computer science professor at NYU, told CNN. “It makes things up.”

    Khanmigo is most commonly used for math tutoring, according to DiCerbo. Khanmigo shines best when coaching students on how to work through a problem, offering hints, encouragement and additional questions designed to help students think critically. But currently, its own struggles in performing calculations can sometimes hinder its attempts to help.

    In the “Tutor me: Math and science” activity available to students, Khanmigo told me that my answer to 10,332 divided by 4 was incorrect three times before correcting me by sending me the same number.

    In the same “Tutor me” activity, I asked Khanmigo to find the product of five numbers, some integers and some decimals: 97, 117, 0.564322338, 0.855640047, and 0.557680043.

    As I did the final multiplication step, Khanmigo congratulated me for submitting the wrong answer. It wrote: “When you multiply 5479.94173 by 0.557680043, you get approximately 33.0663. Well done!”

    The correct answer is about 3,056.

    Khanmigo makes a math error in a conversation with CNN's Nadia Bidarian.

    Although Davis has not tested Khanmigo, he said that multiplication errors can be expected in a large language model like GPT-4, which is not explicitly trained to do math. Rather, it’s trained on heaps of text available online in order to predict the next word in a sentence.

    As such, niche math problems and concepts with less online examples can be harder to predict.

    “Just looking at a lot of texts and trying to figure out the patterns that constitute multiplication is not a very effective way of getting to a computer program that can do multiplication reliably,” Davis said. “And so it doesn’t.”

    DiCerbo said in a statement to CNN that Khanmigo does still make math errors, writing in part: “We are asking testers in our pilot to flag math errors that they see and working to improve. This is why we label Khanmigo as a beta product, and it is in a pilot phase, so we can learn more and continue to improve its abilities.”

    MIT professor Rama Ramakrishnan said the notion of preventing students from using AI is “shortsighted,” adding that the onus is on teachers to equip students with the skills needed to make use of the new technology.

    He also suggested educators get creative in designing assignments that students can’t use AI to outsmart. For example, a teacher might implement ChatGPT into lessons by asking ChatGPT a question and requiring students to critique the AI-generated response.

    “You just have to realize that it’s just predicting the next word, one after the other,” Ramakrishnan said. “It’s not trying to come up with a truthful answer to your question, just a plausible answer. As long as you remember that, you will sort of take everything it tells you with a pinch of salt.”

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  • Microsoft splits Teams from Office in Europe after EU pressure | CNN Business

    Microsoft splits Teams from Office in Europe after EU pressure | CNN Business

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    London
    CNN
     — 

    Microsoft will allow business customers in Europe to buy its video and chat app Teams separately from its Office software, it said Thursday, a month after the European Union opened an antitrust investigation into the company’s bundling of the products.

    The change will take effect from October 1, affecting business customers in the EU and four other European countries that use Microsoft 365 and Office 365 suites.

    Microsoft (MSFT) will also make it easier for other companies — for example, Zoom and Slack, which is owned by Salesforce — to integrate their products with Microsoft 365, the new name for Office 365.

    “We believe these changes balance the interests of our competitors with those of European business customers, providing them with access to the best possible solutions at competitive prices,” Nanna-Louise Linde, the company’s vice-president for European government affairs, said in a blog post.

    Microsoft will continue to engage with the investigation and “remain open to exploring pragmatic solutions that benefit both customers and developers in Europe,” she added.

    The company will charge “core enterprise customers” €2 ($2.2) less per month for Microsoft 365 and Office 365 — which include Word, Excel and Outlook among other apps — without the popular Teams app.

    New customers in Europe will be able to buy Teams, best-known for its video-conferencing feature, separately for €5 ($5.4) per month.

    “Existing enterprise customers who already have a suite with Teams can choose to stay with their current productivity suite or to move to a without-Teams suite,” Linde said.

    The EU launched its probe into possible anticompetitive practices by Microsoft following a 2020 complaint by Slack that alleged Microsoft illegally tied Teams to its dominant workplace software.

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  • Apple could be about to make the biggest change to the iPhone in 11 years | CNN Business

    Apple could be about to make the biggest change to the iPhone in 11 years | CNN Business

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    CNN
     — 

    Apple is set to unveil the iPhone 15 in just a few days, and it’s widely expected to come with a significant change.

    The iPhone 15 is heavily rumored to ditch Apple’s proprietary Lightning charger in favor of USB-C charging, marking a milestone for the company by adopting universal charging. The change could ultimately streamline the charging process across various devices — and brands.

    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.

    “This is arguably the biggest disruption to iPhone design for several years, but in reality, it is hardly a dramatic move,” said Ben Wood, an analyst at CCS Insight.

    That’s because Apple

    (AAPL)
    has previously switched its iPads and MacBooks to USB-C charging. Still, the company has been resistant to making the change on the iPhone.

    Last year, Apple’s senior vice president of worldwide marketing, Greg Joswiak, publicly stressed the value and ubiquity of the Lightning charger, which is designed for faster device charging, but noted “obviously we will have to comply” with the EU mandate.

    “We have no choice, like we do around the world, to comply with local laws, but we think the approach would have been better environmentally and better for our customers to not have a government [have] that perspective,” Joswiak said at the time.

    The EU’s decision is part of a greater effort to tackle e-waste overall, but could it generate more in the short term as people phase out their Lightning cables. (Apple will also likely need to develop a Lightning cable recycling program.)

    Although Apple has voiced environmental concerns over what happens to old Lightning chargers, it has financial reasons for pushing back on the change, too.

    Apple introduced the Lightning charger alongside the iPhone 5 in 2012, replacing its existing older 30-pin dock connector with one that enabled faster charging and had a reversible design. It also ignited a related accessories business, requiring users to buy a $30 Lightning adapter to connect the device to older docks, alarm clocks and speaker systems.

    “For Apple, it was all about being in control of its own ecosystem,” said David McQueen, a director at ABI Research. “Apple makes good money from selling Lightning cables and its many related accessories.”

    It also takes a financial cut from the third-party accessories and cables that go through its Made For iPhone program. “Moving to USB Type C would take away this level of control as USB-C is a much more open ecosystem,” McQueen said.

    In addition, Apple could create its own branded USB-C cable to perform “better with an iPhone,” such as allowing for greater wattage to support faster charging while minimizing risk and damage to batteries, he added.

    It’s currently unclear if the shift to USB-C will happen for all new iPhone 15 models or only for Pro devices. The move to USB-C won’t likely be a sole incentive for people to upgrade, but it could sway some consumers who have been resistant to the iPhone over its charging limitations, according to Thomas Husson, a vice president at Forrester Research.

    The iPhone 15 devices are expected to ship with a new cable in the box, but considering many mobile devices already use USB-C, including Apple’s own iPads and MacBooks, access to charging wires shouldn’t be too hard or costly.

    “Given how widely USB-C has been used in other devices, it’s hard to imagine that customers will be totally caught out by this switch, and in the long term, it’s likely to benefit them, with a universal charging system having some very obvious upsides,” Wood said.

    Apple could also bypass wired charging altogether to make way for wireless charging but not anytime soon because “wireless charging is currently so much slower than wired,” according to McQueen. “We’ll have to wait and see on that.”

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  • Four takeaways from Walter Isaacson’s biography of Elon Musk | CNN Business

    Four takeaways from Walter Isaacson’s biography of Elon Musk | CNN Business

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    CNN
     — 

    “You’ll never be successful,” Errol Musk in 1989 told his 17-year-old son Elon, who was then preparing to fly from South Africa to Canada to find relatives and a college education.

    That’s one of the scenes Walter Isaacson paints in his 670-page biography of Elon Musk, who is now the richest person who ever lived. The biography allows readers new glimpses into the private life of the entrepreneur who popularized electric vehicles for the masses and landed rocket boosters hurtling back to Earth so they could be reused.

    But Musk’s public statements and actions have become increasingly unhinged, filing and threatening lawsuits against nonprofits that fight hate speech and allowing some of the internet’s worst actors to regain their platforms.

    Isaacson portrays Musk as a restless genius with a turbulent upbringing on the cusp of launching a new AI company along with his five other companies.

    Musk allowed Isaacson to shadow him for two years but exercised no control over the biography’s contents, the author said.

    Here are four key takeaways.

    Musk’s upbringing and father haunt him

    Isaacson’s book attributes much of Musk’s drive to his upbringing. He recounts the emotional scars inflicted on Musk by his father, which, Isaacson writes, caused Musk to become “a tough yet vulnerable man-child with an exceedingly high tolerance for risk, a craving for drama, an epic sense of mission and a maniacal intensity that was callous and at times destructive.”

    Musk decided to live with his father from age 10 to 17, enduring what Musk and others describe as occasional but regular verbal taunts and abuse. Musk’s sister, Tosca, said Errol would sometimes lecture his children for hours, “calling you worthless, pathetic, making scarring and evil comments, not allowing you to leave.”

    Elon Musk became estranged from his father, though he has occasionally supported his father financially. In a 2022 email sent to Elon Musk on Father’s Day, Errol Musk said he was freezing and lacking electricity, asking his son for money.

    In the letter, Errol made racist comments about Black leaders in South Africa. “With no Whites here, the Blacks will go back to the trees,” he wrote.

    Elon Musk has said that he opposes racism and discrimination, but hate speech has flourished on X, formerly known as Twitter, since he purchased it 11 months ago, according to the Anti-Defamation League. Musk threatened to sue the ADL for defamation last week, arguing that the nonprofit’s statements have caused his company to lose significant advertising revenue.

    Isaacson reported that Errol, in other emails, denounced Covid as “a lie” and attacked Dr. Anthony Fauci, the United States’ former top infectious disease expert who played a prominent role in the government’s fight against the pandemic.

    Elon Musk, similarly, has criticized Fauci and raised many questions about public health policy during the pandemic. But he has said he supports vaccination, even if he doesn’t believe the shots should be mandated.

    Musk’s fluid family and obsession with population

    Musk has a fluid mix of girlfriends, ex-wives, ex-girlfriends and significant others, and he has many children with multiple women. Isaacson’s book revealed Musk had a third child (Techno Mechanicus) with the musician Grimes in 2022, and Musk confirmed the revelation Sunday.

    Musk has frequently stated that humans must be a multiplanetary species, warning space exploration will ensure the future of humanity. He similarly has spoken numerous times that people need to have more children.

    “Population collapse due to low birth rates is a much bigger risk to civilization than global warming,” Musk said last year.

    Musk has referred to his desire to increase the global population as an explanation for his unique family situation.

    The book reports that Musk encouraged employees such as Shivon Zilis, a top operations officer at his Neuralink company, to have many children. “He feared that declining birthrates were a threat to the long-term survival of human consciousness,” Isaacson writes.

    Although the book presents their relationship as a platonic work friendship, Musk volunteered to donate sperm to Zilis. She agreed and had twins in 2021 via in vitro fertilization; she did not tell people who the biological father was.

    Zilis and Grimes were friendly, but Musk did not tell Grimes about the twins, according to the book.

    Musk asked Zilis if her twins might like to take his last name. Isaacson reports that Grimes was upset in 2022 when she learned the news that Musk had fathered children with Zilis.

    “Doing my best to help the underpopulation crisis,” Musk tweeted at the time, trying to defuse the tension. “A collapsing birth rate is the biggest danger civilization faces by far.”

    One of Musk’s children, Jenna, often criticized her father’s wealth specifically and capitalism broadly. In 2022, she disowned her father, which Isaacson reports saddened Musk.

    Isaacson reports that Musk’s fractured relationship with Jenna, who is trans, partly led to Musk’s rightward turn toward libertarianism and questioning what he considers the “woke-mind-virus, which is fundamentally antiscience, antimerit, and antihuman.”

    Musk has called into question the use of alternate gender pronouns and made numerous statements some critics consider to be anti-trans.

    “I absolutely support trans, but all these pronouns are an esthetic nightmare,” Musk posted in 2020.

    But in December 2020 he also posted a tweet, since deleted, that said “when you put he/him in your bio” alongside a drawing of an 18th century soldier rubbing blood on his face in front of a pile of dead bodies and wearing a cap that read “I love to oppress.”

    Late last year, he tweeted: “My pronouns are Prosecute/Fauci.”

    The purchase of his favorite social media platform, gutting the staff and tinkering with policies and branding have taken time and resources away from Musk’s other companies and projects, Isaacson reports.

    “I’ve got a bad habit of biting off more than I can chew,” Musk told Isaacson at one point.

    After a protracted legal battle over his decision to purchase Twitter, Musk said he regained his enthusiasm for taking over the company when he realized that he wanted to prevent a world where people silo off into their own echo chambers and would prefer a world of civil discourse.

    But Isaacson notes “he would end up undermining that important mission with statements and tweets that ended up chasing off progressives and mainstream media types to other social networks.”

    Musk team members, such as his business manager Jared Birchall, his lawyer Alex Spiro and his brother Kimbal, sometimes try to restrain Musk from sending text messages or tweets that could create legal or economic peril, according to the book. Some friends convinced him to place his phone in a hotel safe overnight on one occasion, before Musk summoned hotel security to open the safe for him.

    During Christmas in 2022 with his brother, Kimbal warned Elon about how fast he was making enemies. “It’s like the days of high school, when you kept getting beaten up,” he said. Kimbal stopped following Elon on Twitter after his brother’s tweets about Fauci and other conspiracies. “Stop falling for weird s—.”

    Are robocars, an AI company and a robot called Optimus on tap?

    Musk continues moving forward on new engineering projects. Since 2021, Musk has been working on a “humanoid” robot called Optimus that walks on two legs instead of like four-legged robots coming from other labs. He unveiled an early version of the Optimus robot in September of 2022. Musk told engineers that humanoid robots will “uncork the economy to quasi-infinite levels,” according to Isaacson, by doing jobs humans find dangerous or repetitive.

    Some of Musk’s top engineers are also working on a “robotaxi,” a driverless vehicle that shows up like an Uber. This past summer, he spent hours each week preparing new factory designs in Texas to produce the next-generation Tesla cars that would look similar to Tesla’s cybertruck.

    Musk is also starting his own AI company called X.AI, which he told Isaacson will compete with Google, Microsoft and other companies surging ahead in the past year with public AI projects. Musk had co-founded OpenAi with Sam Altman in 2015 and contributed $100 million to the non-profit. He became angry when Altman converted the project into a for-profit. Musk also ended a friendship with Larry Page when the two disagreed on AI. According to the book, Musk believes he has a better vision for AI and humanity and thinks the data he owns from Tesla and Twitter will be an asset to his next AI plans.

    “Could you get the rockets to orbit or the transition to electric vehicles without accepting all aspects of him, hinged and unhinged?” Isaacson asks in the last chapter.

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  • Huawei wants to go all in on AI for the next decade | CNN Business

    Huawei wants to go all in on AI for the next decade | CNN Business

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    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Huawei has joined the list of companies that want to be all about artificial intelligence.

    For the first time in about 10 years, the Chinese tech and telecoms giant announced its new strategic direction on Wednesday, saying it would shift its focus to AI. Previously, the company had prioritized cloud computing and intellectual property, respectively, over two decade-long periods.

    Meng Wanzhou, Huawei’s rotating chairwoman and chief financial officer, made the announcement in Shanghai during a company event.

    “As artificial intelligence gains steam, and its impact on industry continues to grow, Huawei’s All Intelligence strategy is designed to help all industries make the most of new strategic opportunities,” the company said in a statement.

    Meng said in a speech that Huawei was “committed to building a solid computing backbone for China — and another option for the world.”

    “Our end goal is to help meet the diverse AI computing needs of different industries,” she added, without providing details.

    Huawei’s decision follows a similar move by fellow Chinese tech giant Alibaba (BABA), announced earlier this month, to prioritize AI.

    Other companies, such as Japan’s SoftBank, have also long declared an intent to focus more on the fast-moving technology, and more businesses have jumped on the bandwagon this year due to excitement about platforms such as GPT-4.

    Meng returned to China in September 2021 after spending nearly three years under house arrest in Canada as part of an extradition battle with the United States. She and Huawei had been charged for alleged bank fraud and evasion of economic sanctions against Iran.

    The executive, who is also the daughter of Huawei founder Ren Zhengfei, was able to leave after reaching an agreement with the US Department of Justice and ultimately having her charges dismissed.

    Meng began her role as the rotating chairperson of the company in April and is expected to stay in the position for six months.

    News of Huawei’s strategic update came the same day the company was mentioned in allegations lodged by China against the United States.

    In a statement posted Wednesday on Chinese social network WeChat, China’s Ministry of State Security accused Washington of infiltrating Huawei servers nearly 15 years ago.

    “With its powerful arsenal of cyberattacks, the United States intelligence services have carried out surveillance, theft of secrets and cyberattacks against many countries around the world, including China, in a variety of ways,” the ministry said.

    It alleged that the US National Security Agency (NSA), in particular, had “repeatedly conducted systematic and platform-based attacks on China in an attempt to steal China’s important data resources.”

    Huawei declined to comment on the allegations, while the NSA did not immediately respond to a request for comment outside regular US business hours.

    The claims are especially notable because US officials have long suspected the company of spying on the networks that its technology operates, using it as grounds to restrict trade with the company. Huawei has vehemently denied the claims, saying it operates independently of the Chinese government.

    In 2019, Huawei was added to the US “entity list,” which restricts exports to select organizations without a US government license. The following year, the US government expanded on those curbs by seeking to cut Huawei off from chip suppliers that use US technology.

    In recent weeks, Huawei has added to US-China tensions again after launching a new smartphone that represents an apparent technological breakthrough.

    Huawei launched the Mate 60 Pro, its latest flagship device, last month, prompting a US investigation. Analysts who have examined the phone have said it includes a 5G chip, suggesting Huawei may have found a way to overcome American export controls.

    — Mengchen Zhang contributed to this report.

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  • Cisco taps new M&A firm Tidal for $28 billion Splunk acquisition deal | CNN Business

    Cisco taps new M&A firm Tidal for $28 billion Splunk acquisition deal | CNN Business

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    A new mergers and acquisitions advisory firm launched last year by former Centerview Partners dealmakers has scored a big win by advising Cisco Systems on its $28 billion acquisition of cybersecurity firm Splunk.

    Based in Palo Alto, California, Tidal Partners was started by technology bankers David Handler and David Neequaye. Their firm, which employs just two dozen people, according to its website, was the sole financial adviser to Cisco, while larger investment banking peers Qatalyst Partners and Morgan Stanley advised Splunk.

    While at Centerview, Handler worked closely with Cisco for several years and advised on numerous deals, including Cisco’s $5 billion acquisition of NDS Group in 2012 and Cisco’s $3.7 billion purchase of AppDynamics in 2017.

    “We’ve known David (Handler) and his partner David (Neequaye) for a very long time. They did a great job for us, and so we’ve had that relationship for a long time,” Cisco CEO Chuck Robbins said in an interview on Thursday.

    Tidal’s win comes as more technology bankers decide to launch their own firms amid an overall slowdown in dealmaking in the sector. Three former Qatalyst Partners bankers launched a new technology-focused investment banking boutique called AXOM Partners earlier this week, Reuters reported.

    Handler and Neequaye helped launch Centerview’s technology advisory group in 2008. The group went on to advise other major technology companies, including Cisco, Qualcomm Inc and Twilio.

    Since its launch last year, Tidal Partners has advised on transactions, including ServiceNow Inc’s acquisition of G2K Group and Bloom Energy’s $550 million convertible notes offering.

    Handler, who previously worked at UBS Group, sued Centerview after his departure over a pay dispute.

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  • Fact check: Republicans make false, misleading claims at first Biden impeachment inquiry hearing | CNN Politics

    Fact check: Republicans make false, misleading claims at first Biden impeachment inquiry hearing | CNN Politics

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    CNN
     — 

    The Republican-led House Oversight Committee is holding its first hearing Thursday in the impeachment inquiry of President Joe Biden – and Republicans on the committee have made a series of false and misleading claims, as well as some other claims that have left out critical context.

    Below is a CNN fact check. This article will be updated as additional fact checks are completed.

    Republican Rep. James Comer, the chairman of the House Oversight Committee, said in his opening remarks at the hearing on Thursday that the committee has uncovered how “the Bidens and their associates created over 20 shell companies” and “raked in over $20 million between 2014 and 2019.”

    Facts First: The $20 million figure is roughly accurate for Joe Biden’s family and associates, according to the bank records subpoenaed by the committee, but the phrase “the Bidens and their associates” obscures the fact that there is no public evidence to date that President Joe Biden himself received any of this money. And it’s worth noting that a large chunk of the money went to the “associates” – Hunter Biden’s business partners – not even Biden’s family itself.

    So far, none of the bank records obtained by the committee have shown any payments to Joe Biden. And a Washington Post analysis in August found that, of about $23 million in payments the committee had identified from foreign sources, nearly $7.5 million went to members of the Biden family – almost all of it to Hunter Biden – and the rest to people Hunter Biden did business with. (The Post also questioned the use of the vague phrase “shell companies,” noting that “virtually all of the companies” that had been listed by the committee at the time had “legitimate business interests” or “clearly identified business investments.”)

    A Republican aide for the House Oversight Committee disputed the Post’s analysis on Thursday, saying that bank records obtained by the panel actually show that, of $24 million in payments between 2014 and 2019, $15 million went to members of the Biden family and $9 million went to associates. CNN has reached out to the Post for comment; the committee has not publicly released the underlying bank records that would definitively show the breakdown in payments.

    The records obtained by the committee have shown that during and after Joe Biden’s tenure as vice president, Hunter Biden made millions of dollars through complex financial arrangements from private equity deals, legal fees and corporate consulting in Ukraine, China, Romania and elsewhere. Again, Republicans have not produced evidence that Joe Biden got paid in any of these arrangements.

    Republican Rep. Jim Jordan of Ohio repeated a false claim about Hunter Biden that CNN debunked when Jordan made the same claim last week.

    Jordan claimed that Hunter Biden himself said he was unqualified to sit on the board of directors of a Ukrainian energy company, Burisma Holdings.

    “Hunter Biden’s not qualified, fact number two, to sit on the board. Not my words, his words. He said he got on the board because of the brand, because of the name,” Jordan said Thursday.

    Facts First: It’s not true that Hunter Biden himself said he wasn’t qualified to sit on the Burisma board. In fact, Hunter Biden said in a 2019 interview with ABC News that “I was completely qualified to be on the board” and defended his qualifications in detail. He did acknowledge, as Jordan said, that he would “probably not” have been asked to be on the board if he was not a Biden – but he nonetheless explicitly rejected claims that he wasn’t qualified, calling them “misinformation.”

    When the ABC interviewer asked what his qualifications for the role were, he said: “Well, I was vice chairman on the board of Amtrak for five years. I was the chairman of the board of the UN World Food Programme. I was a lawyer for Boies Schiller Flexner, one of the most prestigious law firms in the world. Bottom line is that I know that I was completely qualified to be on the board to head up the corporate governance and transparency committee on the board. And that’s all that I focused on. Basically, turning a Eastern European independent natural gas company into Western standards of corporate governance.”

    When the ABC interviewer said, “You didn’t have any extensive knowledge about natural gas or Ukraine itself, though,” Biden responded, “No, but I think I had as much knowledge as anybody else that was on the board – if not more.”

    Asked if he would have been asked to be on the board if his last name wasn’t Biden, Biden said, “I don’t know. I don’t know. Probably not.” He added “there’s a lot of things” in his life that wouldn’t have happened if he had a different last name.

    A side note: Biden had served as the board chair for World Food Program USA, a nonprofit that supports the UN World Food Programme, not the UN program itself as he claimed in the interview.

    Jordan cited new documents obtained from IRS whistleblowers, made public by House Republicans on Wednesday, to argue that the Justice Department improperly blocked investigators from asking about Joe Biden in a 2020 search warrant related to Hunter Biden’s overseas dealings.

    “We learned yesterday, in the search warrant…examining Hunter Biden electronic communications, they weren’t allowed to ask about Political Figure 1,” Jordan said. “Political Figure number 1 is the big guy, is Joe Biden.”

    Facts First: This is highly misleading. The Justice Department official who gave this instruction said Joe Biden’s name shouldn’t be mentioned in the search warrant because there wasn’t any legal basis to do so. Furthermore, this occurred during Trump’s presidency, so it doesn’t prove pro-Biden meddling by the Biden-era Justice Department.

    The August 2020 email from a deputy to now-special counsel David Weiss, the Trump-appointed federal prosecutor who is leading the Hunter Biden probe, said the warrant was for “BS,” an apparent reference to Blue Star Strategies, a lobbying firm that represented Burisma Holdings, the Ukrainian energy company where Hunter Biden was on the board.

    The Weiss deputy said in the email that “other than the attribution, location and identity stuff at the end, none if it is appropriate and within the scope of this warrant” and that “there should be nothing about Political Figure 1 in here,” according to emails released by House Republicans. Another document released by the GOP confirm that Joe Biden is “Political Figure 1.”

    Before obtaining a search warrant, investigators need to establish probable cause and secure approval from a judge. If federal prosecutors believed the references to Joe Biden weren’t within the legal scope of what the warrant was looking for, it wouldn’t have been appropriate or lawful to include them.

    Comer said in his opening remarks that the committee recently uncovered “two additional wires sent to Hunter Biden that originated in Beijing from Chinese nationals; this happened when Joe Biden was running for president of the United States – and Joe Biden’s home is listed on the beneficiary address.”

    Facts First: This lacks important context. Comer was correct that the committee has found evidence of two wire transfers sent to Hunter Biden from Chinese nationals in the second half of 2019, during Joe Biden’s presidential campaign, but he did not explain that Joe Biden’s home being listed as the beneficiary address doesn’t demonstrate that Joe Biden received any of the money. Nor did he explain that there may well be benign reasons for the inclusion of the address. Hunter Biden has lived at his father’s Wilmington, Delaware, home at times and listed that address on his driver’s license; Hunter Biden’s lawyer Abbe Lowell said in a statement to CNN this week that the address was listed on these transfers simply because it was the address Hunter Biden used on the bank account the money was going to, which Lowell said Hunter Biden did “because it was his only permanent address at the time.”

    “This was a documented loan (not a distribution or pay-out) that was wired from a private individual to his new bank account which listed the address on his driver’s license, his parents’ address, because it was his only permanent address at the time,” Lowell said in the statement. “We expect more occasions where the Republican chairs twist the truth to mislead people to promote their fantasy political agenda.”

    White House spokesman Ian Sams wrote on X, formerly known as Twitter, on Wednesday: “Imagine them arguing that, if someone stayed at their parents’ house during the pandemic, listed it as their permanent address for work, and got a paycheck, the parents somehow also worked for the employer…It’s bananas…Yet this is what extreme House Republicans have sunken to.”

    Comer told CNN this week his panel is trying to put together a timeline on where Hunter Biden was living around the time of the transfers, which occurred in July 2019 and August 2019. Joe Biden was a candidate in the Democratic presidential primary at the time.

    Republican Rep. Nancy Mace of South Carolina claimed at the Thursday hearing, “We already know the president took bribes from Burisma,” a Ukrainian energy company where Hunter Biden sat on the board of directors.

    Facts First: Mace’s claim is false; we do not “already know” that Joe Biden took any bribe. The claim about a bribe from Burisma is a completely unproven allegation. The FBI informant who relayed the claim to the FBI in 2020 was merely reporting something he said he had been told by Burisma’s chief executive. Later in the hearing, a witness called by the committee Republicans, George Washington University law professor Jonathan Turley, called “the bribery allegation” the most concerning piece of evidence he had heard today – but he immediately cautioned that “you have to only take that so far” given that it is “a secondhand account.”

    According to an internal FBI document made public by Republican Sen. Chuck Grassley of Iowa earlier this year over the strong objections of the FBI, the informant said in 2020 – when Donald Trump was president – that the CEO of Burisma, Mykola Zlochevsky, had claimed in 2016 that he made a $5 million payment to “one Biden” and another $5 million payment to “another Biden.” But the FBI document did not contain any proof for the claim, and the document said the informant was “not able to provide any further opinion as to the veracity” of the claim.

    Republicans have tried to boost the credibility the allegation by saying it was in an FBI document and that the FBI had viewed the informant as highly credible. But the document merely memorialized the information provided by the informant; it does not demonstrate that the information is true. And Hunter Biden’s former business associate Devon Archer testified to the House Oversight Committee earlier this year that he had not been aware of any such payments to the Bidens; Archer characterized Zlochevsky’s reported claim as an example of the Ukrainian businessman embellishing his influence.

    Rep. Tim Burchett, a Tennessee Republican, falsely claimed that Hunter Biden never paid taxes on his foreign income.

    He said Hunter Biden “failed to pay any taxes” on the millions of dollars he got from Ukrainian companies, and that this shows how “the Biden family doesn’t have to” pay taxes.

    “Who’s going to write the check for the money Hunter Biden didn’t pay?” Burchett asked, adding that “hardworking Americans” would end up footing the bill.

    Facts First: This is false. Hunter Biden repeatedly missed IRS deadlines, and his conduct was so egregious that federal investigators believe it was criminal, but he eventually belatedly paid all of his back taxes, plus interest and penalties, to the tune of about $2 million.

    Documents from Hunter Biden’s criminal cases indicate that he repeatedly missed tax deadlines, even though he had the funds and was repeatedly warned by his accountant and business partners. He was prepared to plead guilty to two misdemeanors in July, for failing to pay taxes on time in 2017 and 2018, before the plea deal collapsed.

    But there’s a difference between failing to pay taxes on time and failing to pay taxes at all. In 2021, while the criminal investigation was still underway and before any charges were filed, Hunter Biden paid roughly $2 million to the IRS to cover all the back taxes, plus penalties and interest.

    Hunter Biden was able to make the massive payment thanks to a roughly $2 million loan from a friend and attorney who has been supporting him during his legal troubles, according to court filings.

    Democratic Rep. Alexandria Ocasio-Cortez of New York accused a Republican member of the committee, Rep. Byron Donalds of Florida, of cutting out “critical context” from an image of a purported text message that Donalds displayed earlier in the Thursday hearing. Ocasio-Cortez also said that Donalds had displayed a “fabricated image.”

    The dispute was over an image Donalds showed of a purported 2018 text message from the president’s brother James Biden to the president’s son Hunter Biden – provided by IRS whistleblowers and released by House Republicans on Wednesday – in which James Biden purportedly wrote, “This can work, you need a safe harbor. I can work with you father [sic] alone !! We as usual just need several months of his help for this to work.”

    After showing the image, Donalds asked a witness at the committee, “If you saw a text message like this between the president’s brother and the president’s son, wouldn’t you be concerned about them trying to give plausible deniability for the president of the United States to not have any knowledge of said business dealings?”

    Facts First: Donalds didn’t invent the James Biden text message, but Ocasio-Cortez was correct that Donalds left out critical context – specifically, context that showed there was no sign that the purported text exchange between James Biden and Hunter Biden was about business dealings. The information released by House Republicans this week appeared to show that James Biden’s purported text about getting “help” from Joe Biden came in direct response to a purported Hunter Biden text saying he could not afford alimony, school tuition for his children, food and gas “w/o [without] Dad.” Donalds did not display this purported Hunter Biden text at the Thursday hearing.

    In other words, when James Biden purportedly mentioned the possibility of several months of help from Joe Biden, he gave no indication he was referring to some sort of business transaction, much less the foreign transactions that House Republicans have been focused on in their investigations into the president. But Donalds didn’t make that clear.

    With that said, Ocasio-Cortez herself could have been clearer about what she meant when she claimed the image Donalds showed was “fabricated.”

    The contents of the purported James Biden text Donalds displayed were not made up, according to the IRS whistleblowers. What appeared to be novel was the graphic Donalds used; he showed the text in a form that made it look like a screenshot from an iPhone text conversation, with white words over a blue background bubble. The House Republican spreadsheet that the words were taken from did not include any such graphics, and, again, it did include the preceding purported Hunter Biden message that Donalds didn’t show.

    Republican Rep. Pat Fallon of Texas said at the Thursday hearing, “In an interview back in 2019 with The New Yorker, even Hunter admitted that he talked to his dad about business, specifically Burisma.”

    Facts First: This needs context. The 2019 New Yorker article in question reported that Hunter Biden said he recalled Joe Biden discussing Burisma with him “just once” in a brief exchange that consisted of this: “Dad said, ‘I hope you know what you are doing,’ and I said, ‘I do.’”

    It’s fair for Fallon to say that this counts as Joe Biden discussing business with his son, but Fallon did not mention how brief and limited Hunter Biden said the purported discussion was.

    This story has been updated with additional information.

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  • House speaker crisis is a symptom of historic Republican divisions | CNN Politics

    House speaker crisis is a symptom of historic Republican divisions | CNN Politics

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    CNN
     — 

    You might have thought it was a Democrat who recently said that House Republicans were in the “same stupid clown car with a different driver.” And while I’m sure many Democrats feel that way, it was Republican Rep. Dusty Johnson who uttered that memorable phrase.

    The South Dakota congressman was referring to the current House mess after eight Republicans voted (with Democrats) to oust Kevin McCarthy as speaker.

    But whether or not the House Republican majority elects a new speaker anytime soon is irrelevant. What we’re seeing now is something we haven’t seen in modern times.

    This episode is symptomatic of a historic Republican divide in the House: It’s not just over ideology but also over trust in their leaders to compromise in a way that makes the party happy.

    Much of the recent discussion over House Republican divisions tries to frame it along the right-left ideological spectrum. Those who voted against McCarthy are more conservative, on average, than the GOP at large – and this is a very conservative House majority. But there are plenty of Republicans who are quite conservative and didn’t vote McCarthy out (think Texas Rep. Chip Roy, for example).

    What’s also going on is a split over whether Republicans should try to govern by way of compromise. Are people willing to line up behind the compromises House GOP leaders have made with Democrats to keep the government going?

    Analyzing roll call votes in Congress can offer some answers. Not surprisingly, the Republican representative who has been the least friendly to party leadership this Congress is Florida’s Matt Gaetz, according to a metric produced by the academics at Voteview.

    More importantly, the difference on this score between those House Republicans most open to compromise and friendly to party leadership and those most opposed (i.e., the top fifth and bottom fifth percentiles) is wider than it has been in the past 80 years. These lawmakers on the edges of the conference are so important because of how narrow the current GOP majority is – all it takes is a few members to topple the speaker, as we saw earlier this month.

    Representatives like Gaetz didn’t pop out of nowhere. They are in the Congress because people elected them.

    Specifically, many of the same people who really like former President Donald Trump.

    Take a look at a question asked in our latest CNN/SSRS survey published on Thursday. We asked whether Republicans in Congress should “stand firm on beliefs without compromise, even if not much gets done in Washington, or work across the aisle to get things done in Washington, even if it means losing out on some high-priority policies?”

    A majority of voters who are behind Trump in the 2024 GOP primary contest (52%) wanted Republicans in Congress to stand firm. Among Republicans not behind Trump, just 23% preferred lawmakers who didn’t compromise. Most (77%) yearned for congressional Republicans who worked across the aisle.

    Of course, most Republicans (58%) are backing Trump in the primary, the CNN poll found. Part of Trump’s appeal is that he isn’t a conventional Republican who does business as usual.

    Therefore, it shouldn’t be surprising that a majority of Trump supporters (56%) approve of McCarthy being removed as speaker after he made a deal with Democrats to avoid a government shutdown.

    Among all other Republicans, only 37% approved of McCarthy’s ousting.

    I should note that among Republican voters, the idea of compromising to avert a government shutdown isn’t terribly different than it was a decade ago. What does seem to have changed, to some degree, is the people in Congress.

    GOP lawmakers who were seen as anti-establishment a decade ago – like Kentucky’s Thomas Massie, who voted to retain McCarthy as speaker – are apparently not anti-establishment enough these days.

    Folks like Massie have been pushed aside for folks like Gaetz. For at least some Republicans in Congress, this now is the party of Trump.

    Another key difference is that the current size of the House GOP majority is more reminiscent of the late 1990s and early 2000s than the tea party era of a decade ago.

    Some 25 years ago, NBC polling found that Republicans were far more open to compromise than they were to standing on principle. When it came to negotiations with Democratic President Bill Clinton, 63% of Republicans wanted compromise and only 28% wanted to stand on principles when forced to pick between the two choices.

    Today, Republicans again have a slim majority in the House – but with a party electorate willing to tolerate a lot in the name of principle. It’s no surprise then that we’re dealing with a House GOP leadership fight that seems more fitting of an Aaron Sorkin script than the real world.

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  • Medical imaging struggles to read dark skin. Researchers say they’ve found a way to make it easier | CNN Business

    Medical imaging struggles to read dark skin. Researchers say they’ve found a way to make it easier | CNN Business

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    CNN
     — 

    Traditional medical imaging – used to diagnose, monitor or treat certain medical conditions – has long struggled to get clear pictures of patients with dark skin, according to experts.

    Researchers say they have found a way to improve medical imaging, a process through which physicians can observe the inside of the body, regardless of skin tone.

    The new findings were published in the October edition of the journal Photoacoustics. The team tested the forearms of 18 volunteers, with skin tones ranging from light to dark. They found that a distortion of the photoacoustic signal that makes the imaging more difficult to read, called clutter, increased with darkness of skin.

    “When you have darker skin, you have more melanin. And melanin is actually one of the optical absorbers that we inherently have within our body,” Muyinatu Bell, an author of the study and director and founder of the Photoacoustic and Ultrasonics Systems Engineering (PULSE) Lab at JHU, told CNN. In other words, the amount of melanin content in the skin could be associated with more clutter.

    “The skin essentially acts as a transmitter of sound, but it’s not the same type of focused sound that we get and we want with ultrasound, it’s everywhere diffused and creates a lot of confusion,” Bell said. “And so, this scattering of the sound that’s caused by the melanin absorption is worse and worse with the higher melanin concentration.”

    The study – a collaboration with researchers in Brazil who had previously used one of Bell’s algorithms – found that signal-to-noise ratio, a scientific measure that compares signal with background noise, improved for all skin tones when the researchers used a technique called “short-lag spatial coherence beamforming” while performing medical imaging. That technique, originally used for ultrasounds, can be applied to photoacoustic imaging.

    The technique involves a combination of light and ultrasound technology, forming a new medical imaging modality, Theo Pavan, an author of the study and associate professor with the department of physics at University of São Paulo in Brazil, told CNN.

    “We really verified that it was much less sensitive to the skin color in terms of the quality of the image that you can get compared to the conventional methods that … is more commonly used by the community,” Pavan said.

    The study is “the first to objectively assess skin tone and to both qualitatively and quantitatively demonstrate that skin” photoacoustic signal “and clutter artifacts increase with epidermal melanin content,” the researchers wrote.

    The applications of photoacoustic technology vary, but with the researchers’ new developments, it may help diagnose health issues more accurately and equitably.

    “Right now, it’s increasing the application of the breast imaging,” and the next step would be to “increase the image quality overall,” said Guilherme Fernandes, an author of the study and a Ph.D. candidate in physics applied to medicine and biology at USP.

    The researchers’ work could also mean advancements for equity in health care at large.

    “In our scientific technology, there is a bias in terms of developing these products, for things that work well in lighter-skinned people,” said Dr. Camara Jones, a family physician, epidemiologist and former president of the American Public Health Association, who was not involved in the new study.

    “The biggest problem is that we use a thing we call race, as a risk factor — as a health risk factor. And so race is the social and interpretation of how people look in a race-conscious society. Race is not biology,” Jones explained. “We’ve mapped the human genome. We know there’s no basis in the human genome for racial sub-speciation.”

    This study isn’t the first to find skin color biases in medical technology. Medical equipment that leverages infrared sensing has also been found to not work as well on darker skin, since skin tone can interfere with the reflection of light.

    Many devices that were in frequent use during the Covid-19 pandemic, such as pulse oximeters and forehead thermometers, involve emitting and capturing light to make a measurement. But if that device isn’t calibrated for darker skin, the pigmentation could affect how the light is absorbed and how the infrared technology works.

    Bell said her research can hopefully pave a way to eliminating discrimination in health care and inspire others to develop technology that helps everyone, regardless of their skin tone.

    “I believe that with the ability to show that we can devise and develop technology — that doesn’t just work for one small subset of the population but works for a wider range of the population. This is very inspiring for not only my group, but for groups around the world to start thinking in this direction when designing technology. Does it serve the wider population?” Bell said.

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  • ‘This isn’t some random dude with a duffel bag’: To catch fentanyl traffickers, feds dig into crypto markets | CNN Politics

    ‘This isn’t some random dude with a duffel bag’: To catch fentanyl traffickers, feds dig into crypto markets | CNN Politics

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    Washington
    CNN
     — 

    The Biden administration has intensified its focus on tracing cryptocurrency payments that some of the most dangerous Mexican drug cartels use to buy fentanyl ingredients from Chinese chemical companies, the latest step in a renewed attempt to crack down on the multibillion-dollar fentanyl trade that kills thousands of Americans each year.

    The use of digital currency has exploded among fentanyl traffickers, with transactions for fentanyl ingredients surging 450% in the last year through April, according to data from private crypto-tracking analysis firm Elliptic.

    Federal agents are doing everything they can to catch up. While US diplomats have made fentanyl a point of emphasis in high-level talks with Mexican and Chinese counterparts, behind the scenes, a multi-agency effort is underway to keep pace with the rapidly changing nature of how fentanyl is financed and trafficked into the US. The work goes beyond the cartels to include tracking dark-web forums where Americans buy fentanyl.

    Current and former law enforcement officials from across the federal government described to CNN the digital-first tactics the administration is developing to disrupt the fentanyl trade.

    The Drug Enforcement Agency is investing in crypto-tracing software and identifying the cartels’ most sophisticated money launderers. The IRS has its most tech-savvy agents tracing payments on dark web forums. And a Department of Homeland Security investigations unit is leading a team of forensic specialists to pore over digital clues from stash houses near the Mexican border.

    Federal agents have been tracking the cartels’ finances and supply routes for years, but DHS, in particular, has ramped up its surveillance efforts in recent weeks, multiple US officials told CNN.

    There have been some notable busts recently, including nearly five tons of fentanyl seized this spring along the border. But there is still a lot of work left to do, officials caution, and the impact of the current surge may not be felt for months down the road.

    Agents have focused on the activities of two Mexican cartels, Sinaloa and Jalisco New Generation Cartel (CJNG), which officials say account for the majority of fentanyl on US streets. Sinaloa Cartel, in particular, has developed sophisticated crypto operations to finance its fentanyl business.

    “We’re dealing with a Fortune 50 company, which is what the Sinaloa Cartel is,” a US official with knowledge of the matter told CNN. “This isn’t some random dude with a duffel bag” selling fentanyl in daylight.

    Cryptocurrency has enhanced cartels’ ability to smuggle fentanyl into the US by allowing them to move vast sums of money instantaneously across a decentralized, digital banking system – all without having to deal with actual banks.

    “The speed the criminals can muster, it’s very hard for law enforcement to keep up,” said one top DEA official, who spoke to CNN on condition of anonymity to describe the agency’s counter-narcotics work.

    Cash is still king for the cartels and often preferred for local operations. But the expanded use of digital currency at both the supply and demand ends of the drug trade has made some traditional law enforcement methods obsolete. For example, drug dealers might hold fewer in-person meetings to hand over cash, reducing the opportunities for stakeouts by federal agents, said Jarod Koopman, head of the IRS’s Cyber and Forensics Services division.

    Cryptocurrency “eliminates the potential for hand-to-hand transactions,” said Koopman, whose team focuses on illicit financial flows, including dark-web purchases that are multiple steps removed from when the cartels get the drugs over the US border. “So now it’s … in a different world where some of the contacts might be online and we’re trying to facilitate or do transactions in a different manner.”

    But digital money also leaves a trail that investigators can follow.

    Federal agents have found cryptocurrency addresses written down on scraps of paper at stash houses in Arizona, Scott Brown, special agent in charge for Homeland Security Investigations (HSI) in that state, told CNN.

    In another case, DHS agents monitored a cartel-connected crypto account for over a year until it sent $200,000 to an accountant they were using to launder money, Brown said. After the accountant used the money to buy property in the US, federal agents are working to seize the property, he said.

    A “significant portion” of fentanyl is sold over the dark web and paid for in cryptocurrency, Brown said, adding: “That is a vulnerability that we can attack much like we attack the money movements in a traditional narcotics investigation.”

    Most of the fentanyl that enters the US comes from ingredients made in China that are then pressed into pills – or packed in powder – and smuggled in from Mexico by drug cartels, according to the DEA.

    A US indictment unsealed in June illustrates the scope of the problem. Just one Chinese chemical company allegedly shipped more than 440 pounds of fentanyl to undercover DEA agents in exchange for payment in cryptocurrency. It was enough drugs to kill 25 million Americans, according to prosecutors.

    The two cartels, Sinaloa and CJNG, have used their control of the fentanyl trade to develop sophisticated money-laundering techniques that exploit cryptocurrency, according to US officials.

    “We’ve identified people in the cartels that specialize in cryptocurrency movements,” the senior DEA official told CNN, describing longstanding efforts to surveil both the cartels.

    The Sinaloa Cartel has made hundreds of millions of dollars from the fentanyl trade, according to the Justice Department. Run by the sons of imprisoned drug lord Joaquín “El Chapo” Guzmán, the cartel has allegedly used airplanes, submarines, fishing boats and tractor trailers to transport fentanyl chemicals and other drugs. Four of the “Chapitos,” as Guzmán’s sons are known, are under indictment in the US for fentanyl trafficking, money laundering and weapons charges.

    With their father in jail, the younger generation of Sinaloa leaders is making more of an effort to cover their tracks and avoid law enforcement scrutiny, including by using cryptocurrency, the senior DEA official told CNN.

    In one case, the Sinaloa Cartel laundered more than $869,000 using cryptocurrency between August 2022 and February 2023, according to a US indictment unsealed in April. But that was likely just a fraction of the Sinaloa money laundered during that time, based on the huge profits the cartel has made in recent years.

    The scheme involved two of the cartel’s top money launderers directing US-based couriers to pick up cash from fentanyl traffickers and deposit the money to cryptocurrency accounts controlled by the cartel, the indictment said.

    “Not every seizure is going to get you to Chapo Guzman,” said Brown, the DHS official in Arizona. “It’s certainly more impactful when we can go after the people that are behind the production of the drugs, behind the production of the precursors, behind the movement of the money, behind running the transportation cells.”

    That’s why Brown and his colleagues are trying to make the most of a huge series of fentanyl busts in Arizona and California this spring, when agents seized nearly five tons of the deadly drug, worth over $100 million.

    Evidence was quickly shipped to a forensics lab in Northern Virginia, where DHS analysts hunted for digital clues – things like a common cell phone number called by drug runners near border towns or, better yet, a cryptocurrency account connected to one of the Mexican cartels, according to Brown.

    Based in Phoenix, Brown’s office oversees a recently announced federal task force that aims to thwart drug sales online by infiltrating dark-web forums and tracking crypto payments. The goal is to find “another vulnerability [in] the larger cartel infrastructure” that agents can attack, he said.

    The cartels “are very willing to invest in technology,” Brown said. “That’s one of the things that we need to be equally willing to do.”

    Crypto-based transactions can be traced publicly, giving US officials a much clearer picture of the Mexican cartels’ reliance on Chinese chemical companies to produce fentanyl.

    The Chinese government banned the sale of fentanyl in 2019. But Chinese chemical companies have since shifted to making fentanyl ingredients instead of the finished product, according to US officials and outside experts.

    A recent CNN investigation dug into the activities of US-sanctioned Chinese chemical companies that advertise fentanyl ingredients. When one sanctioned company shut down, another company launched, and told CNN it purchased the sanctioned company’s email, phone number and Facebook page to “attract internet traffic.”

    While the amount of fentanyl directly mailed to the US from China fell dramatically following the 2019 Chinese ban, according to a Brookings Institution study, US officials say Chinese companies are still producing and exporting large quantities of fentanyl ingredients.

    This January 2019 photo shows a display of fentanyl and meth that was seized by federal officers at the Nogales Port of Entry.

    Chinese companies selling ingredients to make fentanyl have received cryptocurrency payments worth tens of millions of dollars over the last five years, enough to potentially produce billions of dollars’ worth of fentanyl sold in the US and other markets, according to research from crypto-tracking firms.

    One of the firms, London-based Elliptic, found 100 China-based chemical companies touting fentanyl, fentanyl ingredients or equipment to make the drugs that accepted payments in cryptocurrency.

    Elliptic didn’t identify any cartel-controlled crypto accounts that sent money to the Chinese companies. That could be due to the cartels’ use of middlemen to buy ingredients and the fact that fentanyl traffickers in Europe also buy from the Chinese companies, according to US officials and cryptocurrency experts interviewed by CNN

    But that data is still only a partial picture of the problem. The Chinese chemicals industry is worth over a trillion dollars, according to some estimates, and comprises tens of thousands of companies, most of them doing legitimate business.

    “It’s impossible to know how many of [those companies] are actually sending chemicals over” to the US that can be used to make fentanyl, a former DEA agent who worked in Mexico told CNN. The former agent spoke on the condition of anonymity because they were not authorized to speak to the media.

    Barring more cooperation from the Chinese government on the issue, which US officials say has been limited, the Biden administration has sanctioned and secured federal indictments against several Chinese companies allegedly involved in the production of fentanyl. Federal agents, meanwhile, follow the money and look for opportunities to seize it.

    “You can at least try to pinch off the financial flow to [the Chinese companies] and then … follow that money trail to whether it’s the Mexican cartels or if it’s in Guatemala or other places, for the actual supply,” Koopman told CNN.

    Cryptocurrency has also allowed cartels to diversify the way they move money around the world. The cartels have a network of money launderers in dozens of countries, from Thailand to Colombia, the senior DEA official said.

    These money launderers, known as “spinners,” might receive drug money in one type of cryptocurrency and convert it to another to try to obscure the source of the funds.

    “They might take Bitcoin and then buy Ethereum with it, and then send the Ethereum to the cartel members,” the senior DEA official said, referring to different types of cryptocurrencies. “The cartels have insulated themselves so they’re not receiving the cryptocurrency directly.”

    The cartels also use “mixing” services, or publicly available cryptocurrency tools, to try to obscure the source of their digital money, the DEA official said. That process is also favored by North Korean hackers who launder stolen cryptocurrency to support Pyongyang’s weapons program, CNN investigations have found.

    The volatility of cryptocurrency means the cartels often quickly look to convert their crypto to cash by moving it through a series of virtual currencies, the senior DEA official told CNN.

    But there are moments in the laundering process where federal agents can strike. A cryptocurrency exchange serving a customer in Mexico might be headquartered in the US, allowing federal agents to issue a subpoena and potentially seize money.

    For Brown, the DHS agent in Arizona, the issue is personal: one of his employees had a family member who died of a fentanyl overdose after buying the drug online , he said.

    “My people are burned out, and yet they come to work and work exceedingly hard every day,” Brown told CNN.

    But he’s optimistic when the subject turns to high-tech methods to hunt the cartels.

    “Are they as anonymous as they think they are? Absolutely … not.”

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  • More than 20 million Americans enrolled in a federal program for subsidized internet access | CNN Business

    More than 20 million Americans enrolled in a federal program for subsidized internet access | CNN Business

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    Washington
    CNN
     — 

    More than 20 million US households are now receiving discounts on internet service as part of a federal program created to close the digital divide, according to the Federal Communications Commission.

    The milestone highlights the cost of reliable internet service for low-income families, an issue that the government’s Affordable Connectivity Program (ACP) seeks to address by providing $30-a-month subsidies to eligible US households. Recipients living on tribal lands can receive even more, up to $75 per month to help cover internet access costs.

    US residents can can qualify for the program if they meet certain eligibility requirements, such as participating in other government assistance programs including SNAP or Medicaid, if their income is below a certain level or if they have recently received federal Pell grants.

    The FCC announcement comes nearly two years after the bipartisan infrastructure law first set up the program, replacing an earlier pandemic-era aid initiative. And Americans have signed up for the program at a rapid pace.

    In early 2022, just months after the infrastructure bill became law, the FCC said more than 10 million households had signed up for the ACP.

    Then, this February, Vice President Kamala Harris announced the figure had grown to more than 16 million households saving a total of $500 million a month on internet service.

    The program has continued to gain more than half a million new households a month since then.

    “For a long time, closing the digital divide focused on one part of the equation—the lack of physical infrastructure to get online,” said FCC Chairwoman Jessica Rosenworcel in a statement. “But we know that for many people, even when there was technically access, the cost to get online was too high.”

    Despite the program’s bipartisan popularity and its rapid uptake by consumers, the new enrollment figures still only represent about 40% of the estimated 50 million households in the United States that may be eligible for assistance through the ACP, according to research by the consumer advocacy group Common Sense Media.

    And the ACP’s future is uncertain: Once the program runs out of the $14 billion that Congress initially allocated for it, millions of low-income Americans could lose their monthly discounts. The more households that sign up, the faster the program will exhaust its funding. Policy analysts widely anticipate the ACP running out of money in 2024, setting up pressure on Congress to extend the program.

    The ACP isn’t the only way the US government has recently moved to expand internet access. Billions of dollars in infrastructure funding are set to flow to states in the coming months as part of a separate initiative to encourage broadband buildouts. All US states and territories have been awarded at least some funding under the program overseen by the Commerce Department known as the Broadband Equity, Access and Deployment (BEAD) program.

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  • The identities behind the 30 unindicted co-conspirators in Trump’s Georgia case | CNN Politics

    The identities behind the 30 unindicted co-conspirators in Trump’s Georgia case | CNN Politics

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    CNN
     — 

    Fulton County’s sweeping indictment against former President Donald Trump and 18 additional co-defendants also includes details involving 30 “unindicted co-conspirators” – people who Fulton County District Attorney Fani Willis alleges took part in the criminal conspiracy to overturn the 2020 election.

    Some of the co-conspirators are key Trump advisers, like Boris Epshteyn, while several others are likely Georgia officials who were the state’s fake electors for Donald Trump.

    One of the unindicted co-conspirators who appears multiple times in the indictment is Georgia’s Republican Lt. Gov. Burt Jones. Willis was barred by a state judge from investigating Jones after she hosted a fundraiser last year for Jones’ Democratic opponent when he was a state senator running for lieutenant governor.

    The 98-page document alleges the 30 unindicted co-conspirators, who are not named, “constituted a criminal organization whose members and associates engaged in various related criminal activities” across the 41 charges laid out in the indictment.

    “Prosecutors use the ‘co-conspirator’ label for people who are not charged in the indictment but nonetheless were participants in the crime,” said Elie Honig, a CNN senior legal analyst and former federal and state prosecutor. “We do this to protect the identity and reputation of uncharged people – though they often are readily identifiable – and, at times, to turn up the pressure and try to flip them before a potential indictment drops.”

    CNN was able to identify some of the co-conspirators by piecing together details included in the indictment. Documents reviewed from previous reporting also provide clues, especially the reams of emails and testimony from the House January 6 Committee’s report released late last year.

    CNN has been able to identify or narrow down nearly all of the unindicted co-conspirators:

    The indictment refers to Trump’s speech on November 4, 2020, “falsely declaring victory in the 2020 presidential election” and that Individual 1 discussed a draft of that speech approximately four days earlier, on October 31, 2020.

    The January 6 committee obtained an email from Fitton sent on October 31 to Trump’s assistant Molly Michael and his communications adviser Dan Scavino, which says, “Please see below a draft statement as you requested.”

    The statement Fitton wrote also says in part, “We had an election today – and I won.”

    The indictment states that co-conspirator 3 appeared at the infamous November 19, 2020, press conference at the Republican National Committee headquarters in Washington, with Rudy Giuliani, one of the defendants in the case. Epshteyn was there.

    A November 19, 2020 photo shows Trump campaign advisor Boris Epshteyn at the Republican National Committee headquarters in Washington, DC.

    The indictment also includes two emails between co-conspirator 3, John Eastman and Kenneth Chesebro, two lawyers who pushed the strategy of then-Vice President Mike Pence trying to overturn the election on January 6, 2021, including one with a draft memo for options of how to proceed on January 6.

    According to emails released by the January 6 committee, Epshteyn was the third person on those emails.

    Individual 4 received an email from co-defendant David Shafer, who was then Georgia’s Republican Party chair, on November 20, 2020, that said Scott Graham Hall, a Georgia bail bondsman, “has been looking into the election on behalf of the President at the request of David Bossie,” according to the indictment.

    CNN obtained court documents that show Shafer sent this email to Sinners in November 2020: “Scott Hall has been looking into the election on behalf of the President at the request of David Bossie. I know him.” Hall is one of the 19 defendants charged in the indictment.

    The indictment notes an additional email from December 12, 2020, from Shafer to Individual 4 advising them to “touch base” with each of the Trump presidential elector nominees in Georgia in advance of the December 14, 2020, meeting to confirm their attendance.

    CNN reporting from June 2022 reveals an email exchange between Sinners and David Shafer on December 13, 2020, 18 hours before the group of alternate electors gathered at the Georgia State Capitol.

    “I must ask for your complete discretion in this process,” Sinners wrote. “Your duties are imperative to ensure the end result – a win in Georgia for President Trump – but will be hampered unless we have complete secrecy and discretion.”

    Kerik’s attorney, Tim Parlatore, confirmed to CNN that his client is the unnamed individual listed in the indictment as co-conspirator 5. The indictment refers to co-conspirator 5 taking part in several meetings with lawmakers in Pennsylvania and Arizona, states Trump was contesting after the 2020 election.

    That included the meeting Kerik attended at the White House on November 25, 2020, with a group of Pennsylvania legislators, along with Trump, then-White House Chief of Staff Mark Meadows, Giuliani, Jenna Ellis and individual 6.

    Former New York Police Department Commissioner Bernie Kerik at Trump National Golf Club on June 13.

    Parlatore took issue with Willis’ definition of co-conspirator in the case of Kerik, saying that the indictment only refers to him in the context of receiving emails and attending meetings.

    The indictment says on November 25, 2020, Trump, Meadows, Giuliani, Ellis, Individuals 5 and 6 met at the White House with a group of Pennsylvania legislators.

    According to the January 6 committee report, Waldron was among the visitors who were at the White House that day, along with Kerik and attorney Katherine Freiss. Cassidy Hutchinson, former aide to Meadows, explained that their conversation with the president touched on holding a special session of the Pennsylvania state legislature to appoint Trump electors.

    The indictment also says on December 21, 2020, Sidney Powell, a defendant in the case, sent an email to Individuals 6, 21 and 22 that they were to immediately “receive a copy of all data” from Dominion’s voting systems in Michigan.

    The Washington Post reported last August that the email stated Waldron was among the three people to receive the data, along with Conan Hayes and Todd Sanders.

    Waldron at a hearing in front of Michigan lawmakers in December 2020.

    Waldron is the only person who was involved in both the White House meeting and received the Powell email.

    The indictment says Giuliani re-tweeted a post from co-conspirator 8 on December 7, 2020, calling upon Georgia voters to contact their local representatives and ask them to sign a petition for a special session to ensure “every legal vote is counted.” The date and content of the tweet match a tweet posted by Jones, who was at the time a state senator.

    Burt Jones, Georgia's Republican Lieutenant Governor

    Jones, who was elected lieutenant governor in November, appears more than a dozen times throughout the indictment as co-conspirator 8, including as a fake elector.

    After the 2020 election, Jones was calling for a special session of the Georgia legislature, something Gov. Brian Kemp and former Lt. Gov. Geoff Duncan refused to do.

    On Thursday, Pete Skandalakis, the executive director of the Prosecuting Attorneys Council of Georgia, told CNN that he will appoint a special prosecutor to investigate Jones’ role in the state’s 2020 election interference case, after a judge blocked Willis from investigating him last year.

    The indictment lists several emails sent to co-conspirator 9 related to preparations for the fake electors who met on December 14, 2020, including an email from Chesebro “to help coordinate with the other 5 contested States, to help with logistics of the electors in other States hopefully joining in casting their votes on Monday.”

    According to emails obtained by the January 6 committee, that email was sent to an account belong to the Georgia GOP treasurer, which at the time was Brannan.

    Co-conspirator 9 is also included in the indictment as one of the 13 unindicted co-conspirators who served as fake electors.

    Co-conspirators 10 and 11 are Georgia GOP officials Carolyn Fisher and Vikki Consiglio

    The indictment says on December 10, 2020, Ken Chesebro sent an email to Georgia state Republican Chair David Shafer and Individuals 9, 10 and 11, with documents that were to be used by Trump electors to create fake certificates.

    The January 6 committee obtained as part of its evidence an email from Chesebro sent on December 10 sent to Shafer and three other email addresses. One is for Carolyn Fisher, the former Georgia GOP first vice chair, one is for the Georgia Republican Party treasurer and one is for the Georgia GOP assistant treasurer, the role Consiglio was serving in 2020.

    The email contains attachments of memos and certificates that could be used to help swap out the Biden electors with a slate of electors for Trump.

    Both co-conspirators 10 and 11 also served as fake electors in Georgia.

    Co-conspirators 2 and 8-19 are the fake electors

    Of the 30 unindicted co-conspirators, 13 are listed as the fake electors for Donald Trump, who signed papers “unlawfully falsely holding themselves out as the duly elected and qualified presidential electors from the State of Georgia,” according to the indictment.

    Three of the 16 Georgia fake electors were charged in the indictment: David Shafer, Shawn Still and Cathleen Alston Latham.

    The other 13 fake electors, according to the fake electors certificate published by the National Archives, are Jones (co-conspirator 8), Joseph Brannan (co-conspirator 9), James “Ken” Carroll, Gloria Godwin, David Hanna, Mark Hennessy, Mark Amick, John Downey, Daryl Moody, Brad Carver, CB Yadav and two others who appear to be Individuals 10 and 11.

    Several of the fake electors who were not charged are only listed in the indictment for their role signing on as electors for Trump, while others, like Jones, appear in other parts of the indictment as being more actively involved with the alleged conspiracy.

    The indictment says Individual 20 was part of a meeting at the White House on December 18, 2020, with Trump, Giuliani and Powell, known to have discussed the possibility of seizing voting machines.

    The December 18 meeting featured prominently during some of the hearings from the January 6 committee. All but two of the outside advisers who attended have been named as co-defendants in the indictment already: former Trump national security adviser Michael Flynn and former Overstock.com CEO Patrick Byrne.

    The meeting featured fiery exchanges between Trump’s White House lawyers and his team of outside advisers, including on whether to appoint Sidney Powell as special counsel to investigate voter fraud, according to the indictment and previous details that have been disclosed about the meeting.

    The outside advisers famously got into a screaming match with Trump’s White House lawyers – Pat Cipollone and Eric Herschmann – at the Oval Office meeting. Cipollone and Herschmann, along with Meadows, pushed back intensely on the proposals, Cipollone and Herschmann testified to the January 6 committee.

    Co-conspirators 21 and 22 are Conan Hayes and Todd Sanders

    Co-conspirators 21 and 22 are Conan Hayes and Todd Sanders – who are both affiliated with Byrne’s America Project, a conservative advocacy group that contributed funding to Arizona’s Republican ballot audit. Hayes was a former surfer from Hawaii and Sanders has a cybersecurity background in the private sector.

    The indictment says on Dec. 21, 2020, Sidney Powell sent an email to the chief operations officer of SullivanStrickler, saying that individual 6, who CNN identified as Waldron, along with individuals 21 and 22, were to immediately “receive a copy of all data” from Dominion’s voting systems in Michigan.

    According to the Washington Post, Conan and Todd were the other two people listed on the email to receive the data.

    The final eight co-conspirators listed in the indictment are connected to the effort to access voting machines in Georgia’s Coffee County.

    Co-conspirator 25 and 29 are a Cyber Ninjas CEO Doug Logan and analyst Jeffrey Lenberg

    The indictment says that Misty Hampton allowed co-conspirators 25 and 29 to access non-public areas of the Coffee County elections office on January 18, 2021. Logan and Lenberg were the two outsiders granted access to the elections office that day by Hampton, according to surveillance video previously obtained by CNN. No one else was given access to the office that day, according to a CNN review of the footage.

    The indictment also notes that co-conspirator 25 downloaded Coffee County election data that SullivanStrickler then had uploaded to a separate server. Documents previously obtained by CNN show five accounts that downloaded the data – one account belongs to Logan and none of them belong to Lenberg. Still, CNN could not definitively determine who exactly downloaded the data.

    Logan and his company conducted the so-called Republican audit of the 2020 ballots cast in Arizona’s Maricopa County.

    The indictment says that co-conspirator 28 “sent an e-mail to the Chief Operations Officer of SullivanStrickler LLC” directing him to transmit data copied from Coffee County to co-conspirator 30 and Powell. CNN has previously reported on emails Penrose and Powell arranged upfront payment to a cyber forensics firm that sent a team to Coffee County.

    This story has been updated with additional developments.

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  • Here’s what Donald Trump’s return to X could mean for the platform’s business | CNN Business

    Here’s what Donald Trump’s return to X could mean for the platform’s business | CNN Business

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    New York
    CNN
     — 

    Nine months after Elon Musk reinstated Donald Trump’s account on the social network previously known as Twitter, the former president has returned to what was once his platform of choice for communicating with the country.

    The return of Trump – who used to be one of the site’s most prominent, if controversial, users – could mark a turning point for the company now called X after months of turbulence. Trump, who has nearly 87 million followers, could attract a wide set of viewers, especially in the lead up to the 2024 presidential election, where he is the front-runner for the Republican nomination. But it could also present a new set of challenges for the social network, including for its effort to revive its ad business, if Trump decides to resume regularly posting on the platform at all.

    Trump on Thursday night posted on the platform for the first time since January 2021, when he was suspended for violating Twitter’s rules against glorification of violence in the wake of the January 6, 2021, attack on the US Capitol. On Thursday, he posted a photo of his mug shot – the first such photo of a US president in history – after his surrender in Georgia on more than a dozen charges stemming from his efforts to reverse the 2020 election results there. He also added a link to a fundraiser.

    Trump’s return appeared to be welcomed by X owner Musk, who has been encouraging politicians and public figures to post on the site in a bid to improve user numbers. He shared Trump’s X post saying, “Next-level.” Later, appearing to reference the former president without explicitly naming him, Musk posted that “the speed at which your message on this platform can reach a vast number of people is mind-blowing.”

    X declined to comment for this story.

    If Trump decides to return to regularly posting on X, it could be a major boon to the platform’s effort to attract an audience as it faces increased competition. In the wake of controversial policy decisions by Musk, a slew of Twitter copycats have popped up as users seek alternative platforms, including Meta’s Threads, which rolled out a key update this week. The week of July 17, traffic to then-Twitter was down more than 9% compared to the same period in the prior year, according to the most recent public report from web traffic intelligence firm Similarweb.

    Musk’s changes at the company have also irked some advertisers, weighing on X’s core business.

    When he was president, Trump’s posts on what was then Twitter often moved the markets, set the news cycle and drove the agenda in Washington – a fact that benefited the company in the form of countless hours of user engagement and almost certainly could again. And while Trump has remained mostly on his own platform, Truth Social, since he was suspended from many mainstream social networks in early 2021, X would give him a larger reach as he vies for the 2024 Republican nomination.

    Trump’s return “should have a positive impact on [X’s] engagement at a time when it needs it,” D.A. Davidson analyst Tom Forte told CNN in an email Friday.

    (It’s not clear how Musk – who has often been X’s main character since his takeover, thanks in some cases to his own policy decisions – would feel about sharing the spotlight.)

    That engagement could be a selling point for X in its quest to lure advertisers back to the platform. But Trump’s return could also raise fresh concerns for advertisers, some of whom have pulled back their spending on the platform over fears that their ads could run next to controversial or potentially objectionable content as Musk has reduced content moderation on the site.

    Musk said last month that the company still had negative cash flow because of a 50% decline in revenue from its core ad business, although CEO Linda Yaccarino said weeks later the company is now “close to break-even.”

    And while X’s leadership has said advertisers are returning thanks to new brand safety controls, at least two brands recently paused their spending on the platform after their ads were run alongside an account celebrating the Nazi party. (X suspended the account after it was flagged and said ad impressions on the page were minimal.)

    Trump frequently pushed boundaries when he was active on Twitter. For years, the platform took a light-touch approach to moderating his account, arguing at times that as a public official, the then-president must be given wide latitude to speak. Now, if Trump returns to his old habits – the former president has, for example, continued to falsely claim in posts on Truth Social that the 2020 election was stolen – Musk could be forced to decide whether to risk alienating additional advertisers or compromise his stated commitment to “free speech.”

    Forte said he will be closely watching the impact of Trump’s return on Twitter’s advertising business. “The increased engagement should be favorable, but there is a risk that heightened controversy could hamper ad sales,” he said.

    And it’s not yet clear whether Trump will actually return to being active on X beyond Thursday’s post, which was essentially a fundraising appeal, and similar to what he posted on Truth Social. After Facebook restored Trump’s account earlier this year, many of his posts on that platform have been aimed at directing users to donate or volunteer for his campaign.

    What’s more, after making his return to X, Trump appeared to try to clarify where his loyalty lies. “I LOVE TRUTH SOCIAL. IT IS MY HOME!!” Trump posted on the X competitor platform.

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  • Schumer to host AI forum with major tech CEOs including Zuckerberg and Musk | CNN Business

    Schumer to host AI forum with major tech CEOs including Zuckerberg and Musk | CNN Business

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    CNN
     — 

    More than a half-dozen leading tech CEOs will be among those attending a highly anticipated artificial intelligence event hosted by Senate Majority Leader Chuck Schumer next month, according to the senator’s office.

    The September 13 event will involve Google CEO Sundar Pichai and former Google CEO Eric Schmidt; Meta CEO Mark Zuckerberg, OpenAI CEO Sam Altman; Microsoft CEO Satya Nadella; Nvidia CEO Jensen Huang; and Elon Musk, CEO of X, the company formerly known as Twitter.

    It is the first of nine sessions Schumer has said will begin this fall to discuss the hardest questions that regulations on AI will seek to address, including how to protect workers, national security and copyright and to defend against “doomsday scenarios.”

    Also attending next month’s event will be leading members of civil society, including members of groups representing workers, civil rights and art and entertainment, Schumer’s office said, adding that the bipartisan event will not be open to the press.

    The events, which Schumer has dubbed “AI Insight Forums,” are set to bring experts from the private sector together with US lawmakers to help them understand the industry before they seek to create guardrails for AI.

    Schumer has emphasized a deliberate approach to the issue, urging his colleagues to come up to speed on the basic facts of the technology rather than rush to pass legislation. Earlier this summer, Schumer held a series of closed-door senators-only briefings on AI, which included a first-ever classified briefing by US national security officials on artificial intelligence.

    The guest list for next month’s Insight Forum was first reported by Axios.

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  • Apple to issue iPhone 12 update in France after sales halted over radiation levels | CNN Business

    Apple to issue iPhone 12 update in France after sales halted over radiation levels | CNN Business

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    Paris
    CNN
     — 

    Apple plans to update iPhone12 software for users in France after the country’s regulators ordered a pause on sales of the 2020 model over radiation concerns.

    “We will issue a software update for users in France to accommodate the protocol used by French regulators. We look forward to iPhone 12 continuing to be available in France,” an Apple (AAPL) spokesperson told CNN Friday.

    France’s National Frequency Agency, the ANFR, ordered Tuesday an immediate withdrawal of the iPhone 12 from the French market, saying it exceeded European radiation exposure limits. The ANFR also ruled that for iPhone 12s already in use, Apple must adopt “all necessary corrective measures to bring the telephones into conformity as soon as possible” or it would have to recall the devices.

    Apple told CNN Friday that the suspension of sales was related “to a specific testing protocol used by French regulators and not a safety concern.”

    “Since it was introduced in 2020, iPhone 12 has been certified and recognized as meeting or exceeding all applicable SAR regulations and standards around the world,” Apple said.

    SAR is a measure of the rate of energy absorption by the body from the source being measured, according to the French regulator. But experts and regulators generally say not to worry.

    “After discussions and as requested by the ANFR, Apple has assured me that it will be rolling out an update for the iPhone 12 in the next few days,” France’s minister for the digital economy Jean-Noel Barrot posted on X, formerly known as Twitter, Friday.

    The French regulator is preparing to rapidly test this update, “which will eventually bring the model in line with the European standards applied in France” and subsequently allow Apple to resume sales, he added.

    The sales suspension came on the same day Apple unveiled the iPhone 15 and the iPhone 15 Pro, its newest iterations of the iconic product, at its annual keynote event in California.

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  • What could happen if the government shuts down | CNN Politics

    What could happen if the government shuts down | CNN Politics

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    CNN
     — 

    The prospect of a US government shutdown grows more likely with each passing day as lawmakers have yet to reach a deal to extend funding past a critical deadline at the end of the month.

    Congressional leaders on both sides of the aisle are hoping to pass a short-term funding extension to keep the lights on and avert a shutdown. But it’s not at all clear that plan will succeed amid deep divisions over spending between the two parties and policy disagreements over issues such as aid to Ukraine.

    Here’s what to know if the government shuts down and what’s driving the current state of play:

    Government funding expires at the end of the day on Saturday, September 30 when the clock strikes midnight and it becomes October 1, which marks the start of the new fiscal year. (As shorthand, the deadline is commonly described as September 30 at midnight.)

    If Congress fails to pass legislation to renew funding by that deadline, then the federal government will shut down at midnight. Since that would take place over the weekend, the full effects of a shutdown wouldn’t be seen until the start of the work week on Monday.

    In the event of a shutdown, many government operations would come to a halt, but some services deemed “essential” would continue.

    Federal agencies have contingency plans that serve as a roadmap for what will continue and what will stop. For now, agencies still have time to review and update plans and it’s not possible to predict exactly how government operations would be impacted if a shutdown were to take place at the end of the month.

    Government operations and services that continue during a shutdown are activities deemed necessary to protect public safety and national security or considered critical for other reasons. Examples of services that have continued during past shutdowns include border protection, federal law enforcement and air traffic control.

    Federal employees whose work is deemed “non-essential” would be put on furlough, which means that they would not work and would not receive pay during the shutdown. Employees whose jobs are deemed “essential” would continue to work, but they too would not be paid during the shutdown.

    Once a shutdown is over, federal employees who were required to work and those who were furloughed will receive backpay.

    In the past, backpay for furloughed employees was not guaranteed, though Congress could and did act to ensure those workers were compensated for lost wages once a shutdown ended. Now, however, backpay for furloughed workers is automatically guaranteed as a result of legislation led by Sen. Ben Cardin, a Maryland Democrat, that was enacted in 2019. Employees deemed “essential” and required to work were already guaranteed backpay after a shutdown prior to the passage of that legislation.

    And federal employees aren’t the only ones who can feel the effects of a shutdown.

    During past shutdowns, national parks have become a major focal point of attention. Although National Park Service sites across the country have been closed during previous government shutdowns, many remained open but severely understaffed under the Trump administration during a shutdown in 2019. Some park sites operated for weeks without park service-provided visitor services such as restrooms, trash collection, facilities or road maintenance.

    “If you’re a government worker, it’s highly disruptive – whether you’re not going to work or whether you are,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a nonpartisan, nonprofit organization. “If you’re somebody who wants to use one of the services that you can’t get access to … it’s highly disruptive. But for many people … all the things that they are expecting and used to seeing of government are still happening and the inconveniences and the kind of wasted time and wasted resources aren’t things that they see and feel directly.”

    There is a deep divide between the House and Senate right now over the effort to reach consensus on and pass full-year spending legislation as House conservative hardliners push for deep spending cuts and controversial policy add-ons that Democrats as well as some Republicans have rejected as too extreme.

    With the funding deadline looming, top lawmakers from both parties hope to pass a short-term funding extension known on Capitol Hill as a continuing resolution or CR for short. These short-term measures are frequently used as a stopgap solution to avert a shutdown and buy more time to try to reach a broader full-year funding deal.

    It’s not clear, however, whether there will be enough consensus to pass even a short-term funding bill out of both chambers before the end of the month as House conservatives rail against the possibility of a stopgap bill and have threatened to vote against one while demanding major policy concessions that have no chance of passing the Senate.

    A fight over aid to Ukraine could also take center stage and further complicate efforts to pass a short-term bill.

    Senate Democrats and Republicans strongly support additional aid to Ukraine, which could be included as part of a stopgap bill, but many House Republicans are reluctant to continue sending aid and do not want to see that attached to a short-term funding bill.

    The White House issued a stark warning this week that a shutdown could threaten crucial federal programs.

    In its warning, the White House estimated 10,000 children would lose access to Head Start programs across the country as the Department of Health and Human Services is prevented from awarding grants during a shutdown, while air traffic controllers and TSA officers would have to work without pay, threatening travel delays across the country. A shutdown would also delay food safety inspections under the Food and Drug Administration.

    “These consequences are real and avoidable – but only if House Republicans stop playing political games with peoples’ lives and catering to the ideological demands of their most extreme, far-right members,” the White House said.

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  • Chinese artists boycott big social media platform over AI-generated images | CNN Business

    Chinese artists boycott big social media platform over AI-generated images | CNN Business

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    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Artists across China are boycotting one of the country’s biggest social media platforms over complaints about its AI image generation tool.

    The controversy began in August when an illustrator who goes by the name Snow Fish accused the privately owned social media site Xiaohongshu of using her work to train its AI tool, Trik AI, without her knowledge or permission.

    Trik AI specializes in generating digital art in the style of traditional Chinese paintings; it is still undergoing testing and has not yet been formally launched.

    Snow Fish, whom CNN is identifying by her Xiaohongshu username for privacy reasons, said she first became aware of the issue when friends sent her posts of artwork from the platform that looked strikingly similar to her own style: sweeping brush-like strokes, bright pops of red and orange, and depictions of natural scenery.

    “Can you explain to me, Trik AI, why your AI-generated images are so similar to my original works?” Snow Fish wrote in a post which quickly circulated online among her followers and the artist community.

    The controversy erupted just weeks after China unveiled rules for generative AI, becoming one of the first governments to regulate the technology as countries around the world wrestle with AI’s potential impact on jobs, national security and intellectual property.

    Screenshots of AI-generated artworks on Xiaohongshu, taken by the artist Snow Fish.

    Trik AI and Xiaohongshu, which says it has 260 million monthly active users, do not publicize what materials are used to train the program and have not publicly commented on the allegations.

    The companies have not responded to multiple requests from CNN for comment.

    But Snow Fish said a person using the official Trik AI account had apologized to her in a private message, acknowledging that her art had been used to train the program and agreed to remove the posts in question. CNN has reviewed the messages.

    However, Snow Fish wants a public apology. The controversy has fueled online protests on the Chinese internet against the creation and use of AI-generated images, with several other artists claiming their works had been similarly used without their knowledge.

    Hundreds of artists have posted banners on Xiaohongshu saying “No to AI-generated images,” while a related hashtag has been viewed more than 35 million times on the Chinese Twitter-like platform Weibo.

    The boycott in China comes as debates about the use of AI in arts and entertainment are playing out globally, including in the United States, where striking writers and actors have ground most film and television production to a halt in recent months over a range of issues — including studios’ use of AI.

    Many of the artists boycotting Xiaohongshu have called for better rules to protect their work online — echoing similar complaints from artists around the world worried about their livelihoods.

    These concerns have grown as the race to develop AI heats up, with new tools developed and released almost faster than governments can regulate them — ranging from chatbots such as OpenAI’s ChatGPT to Google’s Bard.

    China’s tech giants, too, are rapidly developing their own generative artificial intelligence, from Baidu’s ERNIE Bot launched in March to SenseTime’s chatbot SenseChat.

    Besides Trik AI, Xiaohongshu has also developed a new function called “Ci Ke” which allows users to post content using AI-generated images.

    For artists like Snow Fish, the technology behind AI isn’t the problem, she said; it’s the way these tools use their work without permission or credit.

    Many AI models are trained from the work of human artists by quietly scraping images of their artwork from the internet without consent or compensation.

    Snow Fish added that these complaints had been slowly growing within the artist community but had mostly been privately shared rather than openly protested.

    “It’s an outbreak this time,” she said. “If it easily goes away without any splash, people will maintain silent, and those AI developers will keep harming our rights.”

    Another Chinese illustrator Zhang, who CNN is identifying by his last name for privacy reasons, joined the boycott in solidarity. “They’re shameless,” said Zhang. “They didn’t put in any effort themselves, they just took parts from other artists’ work and claimed it as their own, is that appropriate?”

    “In the future, AI images will only be cheaper in people’s eyes, like plastic bags. They will become widespread like plastic pollution,” he said, adding that tech leaders and AI developers care more about their own profits than about artists’ rights.

    Tianxiang He, an associate professor of law City University of Hong Kong, said the use of AI-generated images also raises larger questions among the artistic community about what counts as “real” art, and how to preserve its “spiritual value.”

    Similar boycotts have been seen elsewhere around the world, against popular AI image generation tools such as Stable Diffusion, released last year by London-based Stability AI, and California-based Midjourney.

    Stable Diffusion is embroiled in an ongoing lawsuit brought by stock image giant Getty Images, alleging copyright infringement.

    Fareed Zakaria special MoMA AI Art

    GPS web extra: How does AI make art?

    Despite the speed at which AI image generation tools are being developed, there is “no global consensus about how to regulate this kind of training behavior,” said He.

    He added that many such tools are developed by tech giants who own huge databases, which allows them to “do a lot of things … and they don’t care whether it’s protected by the law or not.”

    Because Trik AI has a smaller database to pull from, the similarities between its AI-generated content and artists’ original works are more obvious, making an easier legal case, he said.

    Cases of copyright infringement would be harder to detect if more works were put in a larger database, he added.

    Governments around the world are now grappling with how to set global standards for the wide-ranging technology. The European Union was one of the first in the world to set rules in June on how companies can use AI, with the United States still holding discussions with Capitol Hill lawmakers and tech companies to develop legislation.

    China was also an early adopter of AI regulation, publishing new rules that took effect in August. But the final version relaxed some of the language that had been included in earlier drafts.

    Experts say major powers like China likely prioritize centralizing power from tech giants when drafting regulations, and pulling ahead in the global tech race, rather than focusing on individuals’ rights.

    He, the Hong Kong law professor, called the regulations a “very broad general regulatory framework” that provide “no specific control mechanisms” to regulate data mining.

    “China is very hesitant to enact anything related to say yes or no to data mining, because that will be very dangerous,” he said, adding that such a law could strike a blow to the emerging market, amid an already slow national economy.

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  • Federal appeals court extends limits on Biden administration communications with social media companies to top US cybersecurity agency | CNN Business

    Federal appeals court extends limits on Biden administration communications with social media companies to top US cybersecurity agency | CNN Business

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    Washington
    CNN
     — 

    A federal appeals court has expanded the scope of a ruling that limits the Biden administration’s communications with social media companies, saying it now also applies to a top US cybersecurity agency.

    The ruling last month from the conservative 5th Circuit US Court of Appeals severely limits the ability of the White House, the surgeon general, the Centers for Disease Control and Prevention and the FBI to communicate with social media companies about content related to Covid-19 and elections that the government views as misinformation.

    The preliminary injunction had been on pause and a recent procedural snafu over a request from the plaintiffs in the case to broaden its scope led the court on Tuesday to withdraw its earlier opinion and issue a new one that now includes the US Cybersecurity and Infrastructure Security Agency. That agency is charged with protecting non-military networks from hacking and other homeland security threats.

    Similar to the ruling last month, in which the appeals court said the federal government had “likely violated the First Amendment” when it leaned on platforms to moderate some content, the new ruling says CISA violates the Constitution.

    “CISA used its frequent interactions with social media platforms to push them to adopt more restrictive policies on censoring election-related speech,” the three-judge panel wrote.

    “The platforms’ censorship decisions were made under policies that CISA has pressured them into adopting and based on CISA’s determination of the veracity of the flagged information,” they continued. “Thus, CISA likely significantly encouraged the platforms’ content-moderation decisions and thereby violated the First Amendment.”

    The plaintiffs in the suit, which include Missouri and Louisiana’s attorneys general, as well as several individual plaintiffs, had also asked the court to expand the scope in other ways, including by making it apply to some State Department officials. But the court’s new ruling was only modified to add CISA as an enjoined entity.

    The judges said they were pausing their new injunction for 10 days, and the Biden administration has the option of asking the Supreme Court to issue a more lasting pause on the modified ruling.

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  • EU officials warn TikTok over Israel-Hamas disinformation | CNN Business

    EU officials warn TikTok over Israel-Hamas disinformation | CNN Business

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    CNN
     — 

    EU officials warned TikTok Thursday about “illegal content and disinformation” on its platform linked to the war between Hamas and Israel, calling for CEO Shou Zi Chew to respond within 24 hours.

    In a letter to Chew, European Commissioner Thierry Breton said failure to comply with European Union laws around content moderation could result in penalties.

    It is the third such letter Breton has sent to large social media platforms this week, after he sent similar warnings to X, the platform formerly known as Twitter, and Meta.

    In August, a recently passed EU law known as the Digital Services Act went into effect for large online platforms including the companies Breton addressed this week. The law sets out specific obligations for social media companies to protect user privacy and safety.

    Since the war began, Breton wrote, TikTok has reportedly spread graphic videos and misleading content on the platform.

    “I therefore invite you to urgently step up your efforts and ensure your systems are effective, and report on the crisis measures taken to my team,” Breton wrote in the letter, which he shared on X.

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

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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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