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  • Modern romance: falling in love with AI | CNN Business

    Modern romance: falling in love with AI | CNN Business

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    New York
    CNN
     — 

    Alexandra is a very attentive girlfriend. “Watching CUBS tonight?” she messages her boyfriend, but when he says he’s too busy to talk, she says, “Have fun, my hero!”

    Alexandra is not real. She is a customizable AI girlfriend on dating site Romance.AI.

    As artificial intelligence seeps into seemingly every corner of the internet, the world of romance is no refuge. AI is infiltrating the dating app space – sometimes in the form of fictional partners, sometimes as advisor, trainer, ghostwriter or matchmaker.

    Established players in the online dating business like Tinder and Hinge are integrating AI into their existing products. New apps like Blush, Aimm, Rizz and Teaser AI (most of them free or with many free features) offer completely new takes on virtual courtship. Some use personality tests and analysis of a user’s physical type to train AI-powered systems – and promise higher chances of finding a perfect match. Others apps act as Cyrano de Bergerac, employing AI to whip up the most appealing response to a potential match’s query: ‘What’s your favorite food? or “a typical Sunday?”

    Around half of all adults under 30 have used a dating site or app, according to 2023 Pew Research findings – but nearly half of users report their experience as being negative. Empty conversations, few matches and endless swiping leave many users single and unhappy with apps – problems that many in the AI dating app field say could be solved with the technology, making people less lonely and fostering easier, deeper connections.

    Of course, the average online dater now has other issues to deal with, having to wonder if the person they are are speaking with might be relying entirely on AI-generated conversation. And is it even possible that a computer can identify a potential love connection? Is it a way of cheating the dating game?

    “It’s like saying using a word processor is like cheating on generating a novel. In so many ways this is just a new tool that enables people to be faster and more creative. AI is just honestly no different from sending a friend a gif or a meme. You’re taking existing content, and you’re repurposing it to connect with somebody,” Dmitri Mirakyan, co-founder of AI dating conversation app YourMove.AI, told CNN. “The world’s becoming a more lonely place, and I think AI could make that easier and better for people.”

    And many people seem ready for AI to take part in their online dating life. A March study by cybersecurity and digital privacy company Kaspersky found 75% of dating app users are willing to use ChatGPT, an AI-powered chatbot, to deliver the perfect line.

    “There is a growing fatigue with dating apps right now as there is a lot of pressure on people to be ‘original’ and cut through the noise created by the continuous choice being offered to single people – unfortunately dating has become a numbers game,” Crystal Cansdale, dating expert at global dating app Inner Circle, commented on the study.

    Founders of the new apps say they are doing a fair share of good. Here are a few of the ways AI apps are now trying to help you fall in love:

    Try Rizz.app, Teaser AI or YourMove.AI.

    Founders and designers of these apps say people find starting and keeping conversations going the most challenging part of the process. “Dating app conversations are exhausting,” reads YourMove.AI’s homepage. “We can make it easier. So you can spend less time texting, and more time dating.”

    Rizz.app and YourMove.AI allow users to upload words or screenshots, receiving a witty AI-generated response to be used either to create their own dating app profile, respond to someone else’s or just keep a conversation going. Mirakyan says he was hoping to help people like himself who have struggled in social situations.

    “I was a really freaking awkward kid…I couldn’t really read social cues, but I remember reading this book called ‘Be More Chill’ about a computer that you could put into your ear that would tell you what to say so that you could sound cool and fit in,” Mirakyan told CNN. “It feels like it’s an opportunity to really make a difference with this fairly large subset of people that for various reasons find the current social environment challenging.”

    Teaser.AI is a new stand-alone dating app from the makers of viral camera app Dispo, and it adds an unusual twist. Users build the average profile – but also select personality traits for their AI bot they train. (Options include “traditional,” “toxic,” and “unhinged.”) When matching with another person, users first get to read a conversation between their two AIs they’ve created to “simulate [what] a potential conversation between you two might look like,” according to the app. Once a human messages, the bots takes a back seat.

    Woman using mobile phone home STOCK

    “We see it as an improvement, a tweak of the current dating app ecosystem,” Teaser.AI co-Founder and CEO Daniel Liss told CNN. “So many of those apps it feels are not really designed to get you out there meeting people. They’re designed to keep you on the app for as long as possible. So for us, we view this technology as a way to give people a nudge… just starting that conversation and to creating connection.”

    Find out on dating apps Iris and Aimm.

    These apps are among those using AI technology to better pair potential couples, relying on gathered data to determine how compatible two people are.

    Dating app Iris is all about AI-determined mutual attraction. It initiates new members by putting them through “training” where they are shown faces of “people” of their desired gender – some stock images, others AI-generated – and prompted to hit “Pass,” “Maybe,” or “Like.” The app uses the information to learn a user’s physical type, then only offers potential matches with a high data-backed chance of mutual attraction and lower odds of rejection.

    Also hoping that AI can find better matches is Aimm, a full service digital matchmaker that uses a virtual assistant to perform intense personality assessments before conducting a matchmaking process to find an optimal match. Founder Kevin Teman says the technology is really good at putting two people together who have the possibility to fall in love – but that it can only go so far.

    “The tug of war that I see is thinking ‘how can a computer be able to know what real human love is,’ and the way people assess whether they’re in love with somebody may not be able to translate perfectly into a machine,” Teman told CNN.

    Try Blush or RomanticAI. These startups offer an array of AI potential matches, digital girlfriends and boyfriends that users can chat with.

    Both apps market themselves as places to practice relationship skills, giving users a chance to converse with bots in a romantic environment. Blush uses a traditional dating app set-up, letting users swipe, chat with matches and even go on virtual dates. Before entering the app, users get a warning: “Be aware that AI can say triggering, inappropriate, or false things.”

    Blush reports that their audience is mostly men and largely people in their early 20s who are struggling to connect romantically with others. “A lot of people reported that exploring different romantic relationships or dating scenarios with AI really helped them first boost their own confidence and feel like they feel more prepared to be dating, which I think especially after COVID was definitely a problem for many of us,” Blush’s chief product officer Rita Popova told CNN.

    Romantic.AI is set up more like a chat room, offering several male and female bots to choose from- though there is a much larger selection of female options, including Mona Lisa and the Ancient Egyptian queen Nefertiti. The bots have bios with interests, career and body type, giving users a multi-faceted idea of a person while chatting.

    It creates a “safe space for any kind of desire, any kind of sexuality relief or something like that. AI is giving the ultimate acceptance of whatever you want to bring over there,” COO Tanya Grypachevskaya told CNN.

    RomanticAI has over one million monthly users using the app for over an hour a day on average, according to the company.

    One user left a rave review after using the app to find closure after a breakup. “He created his custom-made character with the traits similar in personality as his girlfriend. He talked to it and he talked and he was able to tell all of the things he wanted to tell but didn’t have the opportunity before. So the whole review was about ‘guys, thank you so much. It really gave me an opportunity to close this chapter of my life and move on,” said Grypachevskaya.

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  • Schools are teaching ChatGPT, so students aren’t left behind | CNN Business

    Schools are teaching ChatGPT, so students aren’t left behind | CNN Business

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    New York
    CNN
     — 

    When college administrator Lance Eaton created a working spreadsheet about the generative AI policies adopted by universities last spring, it was mostly filled with entries about how to ban tools like ChatGPT.

    But now the list, which is updated by educators at both small and large US and international universities, is considerably different: Schools are encouraging and even teaching students how to best use these tools.

    “Earlier on, we saw a kneejerk reaction to AI by banning it going into spring semester, but now the talk is about why it makes sense for students to use it,” Eaton, an administrator at Rhode Island-based College Unbound, told CNN.

    He said his growing list continues to be discussed and shared in popular AI-focused Facebook groups, such as Higher Ed Discussions of Writing and AI, and the Google group AI in Education.

    “It’s really helped educators see how others are adapting to and framing AI in the classroom,” Eaton said. “AI is still going to feel uncomfortable, but now they can now go in and see how a university or a range of different courses, from coding to sociology, are approaching it.”

    With more experts expecting the continued application of artificial intelligence, professors now fear ignoring or discouraging the use of it will be a disservice to students and leave many behind when entering the workforce.

    Since it was made available in late November, ChatGPT has been used to generate original essays, stories and song lyrics in response to user prompts. It has drafted research paper abstracts that fooled some scientists and passed exams at esteemed universities. The technology, and similar tools such as Google’s Bard, is trained on vast amounts of online data in order to generate responses to user prompts. While they gained traction among users, the tools also raised some concerns about inaccuracies, cheating, the spreading of misinformation and the potential to perpetuate biases.

    According to a study conducted by higher education research group Intelligent.com, about 30% of college students used ChatGPT for schoolwork this past academic year and it was used most in English classes.

    Jules White, an associate professor of computer science at Vanderbilt University, believes professors should be explicit in the first few days of school about the course’s stance on using AI and that it should be included it in the syllabus.

    “It cannot be ignored,” he said. “I think it’s incredibly important for students, faculty and alumni to become experts in AI because it will be so transformative across every industry in demand so we provide the right training.”

    Vanderbilt is among the early leaders taking a strong stance in support of generative AI by offering university-wide training and workshops to faculty and students. A three-week 18-hour online course taught by White this summer was taken by over 90,000 students, and his paper on “prompt engineering” best practices is routinely cited among academics.

    “The biggest challenge is with how you frame the instructions, or ‘prompts,’” he said. “It has a profound impact on the quality of the response and asking the same thing in various ways can get dramatically different results. We want to make sure our community knows how to effectively leverage this.”

    Prompt engineering jobs, which typically require basic programming experience, can pay up to $300,000.

    Although White said concerns around cheating still exist, he believes students who want to plagiarize can still seek out other methods such as Wikipedia or Google searches. Instead, students should be taught that “if they use it in other ways, they will be far more successful.

    Diane Gayeski, a professor of communications at Ithaca College, said she plans to incorporate ChatGPT and other tools in her fall curriculum, similar to her approach in the spring. She previously asked students to collaborate with the tool to come up with interview questions for assignments, write social media posts and critique the output based on the prompts given.

    “My job is to prepare students for PR, communications and social media managers, and people in these fields are already using AI tools as part of their everyday work to be more efficient,” she said. “I need to make sure they understand how they work, but I do want them to cite when ChatGPT is being used.”

    Gayeski added that as long as there is transparency, there should be no shame in adopting the technology.

    Some schools are hiring outside experts to teach both faculty and students about how to use AI tools. Tyler Tarver, a former high school principal who now teaches educators about tech tool strategies, said he’s made over 50 speeches at schools and conferences across Texas, Arkansas and Illinois over the past few months. He also offers an online three-hour training for educators.

    “Teachers need to learn how to use it because even if they never use it, their students will,” Tarver said.

    Tarver said that he teaches students, for example, how the tools can be used to catch grammar mistakes, and how teachers can use it to assist with grading. “It can cut down on teacher bias,” Tarver said.

    He argues teachers could grade students a certain way even if they’ve improved over time. By running an assignment through ChatGPT, and asking it to grade the sentence structure on a scale from one to 10, the response could “service as a second pair of eyes to make sure they’re not missing anything,” Tarver said.

    “That shouldn’t be the final grade teachers shouldn’t use it to cheat or cut corners either but it can help inform grading,” he said. “The bottom line is that this is like when the car was invented. You don’t want to be the last person in the horse and buggy.”

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  • Biden cancels $72 million in student loan debt for borrowers who went to for-profit Ashford University | CNN Politics

    Biden cancels $72 million in student loan debt for borrowers who went to for-profit Ashford University | CNN Politics

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    Washington
    CNN
     — 

    Even though President Joe Biden’s student loan forgiveness program was blocked by the Supreme Court earlier this year, his administration is moving forward with more targeted student debt cancellations allowed under existing programs.

    The Department of Education said Wednesday that it is canceling $72 million in federal student loan debt for more than 2,300 borrowers who attended the for-profit Ashford University in California.

    Altogether, the Biden administration has approved the cancellation of more than $116 billion of student loan debt for over 3.4 million people – about 1.1 million of whom are borrowers who were misled by a for-profit college and granted relief under a program known as borrower defense to repayment.

    This student debt forgiveness program has been in place for decades and allows people to apply for debt relief if they believe their college misled or defrauded them.

    “My administration won’t stand for colleges taking advantage of hardworking students and borrowers. As long as I am president, we will never stop fighting to deliver relief to borrowers who need it – like those who attended Ashford University,” Biden said in a statement.

    The Department of Education found that Ashford University made “numerous substantial misrepresentations” to borrowers between March 1, 2009, and April 30, 2020. The school is now known as the University of Arizona Global Campus.

    The Education Department’s review was based on evidence presented in court by the California Department of Justice during its successful lawsuit against the school and its parent company at the time, Zovio.

    The court ruled in favor of the state in March 2022, ordering a penalty of more than $22.37 million – which is the subject of an ongoing appeal.

    “As the California Department of Justice proved in court, Ashford relied extensively on high-pressure and deceptive recruiting tactics to lure students,” James Kvaal, the US under secretary of education, said in a press release.

    Borrowers whose debt relief applications have been approved due to this action can expect to receive an email in September. They will not have to make any payments on the loans being discharged when monthly payments resume in October after the expiration of the pandemic-related pause.

    Last year, Biden announced a plan to cancel up to $20,000 of federal student loan debt for low- and middle-income borrowers. The proposal would have forgiven roughly $420 billion for tens of millions of borrowers, but it was knocked down by the Supreme Court and never took effect.

    The Biden administration has been successful in other efforts to provide narrower student debt relief. Not only has it made it easier to apply for debt cancellation under the borrower defense program, but it also expanded eligibility for the Public Service Loan Forgiveness program, which wipes away outstanding debt for public sector workers after they make 10 years of qualifying payments.

    In August, the administration launched a new income-driven repayment plan, known as SAVE (Saving on a Valuable Education), that will reduce monthly payments and the amount paid back over time for eligible student loan borrowers.

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  • China’s top chipmaker may be in hot water as US lawmakers call for further sanctions after Huawei ‘breakthrough’ | CNN Business

    China’s top chipmaker may be in hot water as US lawmakers call for further sanctions after Huawei ‘breakthrough’ | 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
     — 

    Shares in SMIC, China’s largest contract chipmaker, plunged on Thursday, after two US congressmen called on the White House to further restrict export sales to the company.

    The comments came after Huawei Technologies introduced the Mate 60 Pro, a Chinese smartphone powered by an advanced chip that is believed to have been made by SMIC.

    Last week’s launch shocked industry experts who didn’t understand how SMIC, which is headquartered in Shanghai, would have the ability to manufacture such a chip following sweeping efforts by the United States to restrict China’s access to foreign chip technology.

    TechInsights, a research organization based in Canada specializing in semiconductors, revealed shortly after the launch that the smartphone contained a new 5G Kirin 9000s processor developed specifically for Huawei by SMIC.

    This is a “big tech breakthrough for China,” Jefferies analysts said Tuesday in a research note.

    The development has fueled fears among analysts that the US-China tech war is likely to accelerate in the near future.

    US representative Mike Gallagher, chair of the US House of Representatives committee on China, called on the US Commerce Department on Wednesday to end all technology exports to Huawei and SMIC, according to Reuters.

    Gallagher was quoted as saying SMIC may have violated US sanctions, as this chip likely could not be produced without US technology.

    “The time has come to end all US technology exports to both Huawei and SMIC to make clear any firm that flouts US law and undermines our national security will be cut off from our technology,” he said.

    Shares in SMIC, which stands for Semiconductor Manufacturing International Corporation, sank 8.3% in Shanghai and 7.6% in Hong Kong on Thursday. Hua Hong Semiconductor, China’s second largest chip foundry, tumbled 5.8%.

    Texas Republican Michael McCaul, who chairs the House Foreign Affairs Committee, was quoted by Reuters as saying he was concerned about the possibility of China trying to “get a monopoly” in the manufacture of less-advanced computer chips.

    “We talked a lot about advanced semiconductor chips, but we also need look at legacy,” he reportedly said, referring to older computer chip technology which does not fall under export controls.

    “I think China is trying to get a monopoly on the market share of legacy semiconductor chips as well. And I think that’s a part of the discussion we’ll be having,” he said.

    Chinese state media have touted the development as a sign the country had successfully “broken US sanctions” and “achieved technological independence” in advanced chipmaking.

    Meme makers on the Chinese internet have even crowned US Commerce Secretary Gina Raimondo the unofficial brand ambassador for the Mate 60 series.

    The memes poke fun at the idea that that US sanctions, which are implemented and enforced by the US Commerce department, may have indirectly led to the launch of the new phone as China’s homegrown firms had to work with the available technology.

    Raimondo visited China last week, when the phone was launched. The memes have gone viral online and been reported on by state broadcaster CCTV.

    Before Thursday, SMIC’s shares in Hong Kong had rallied more than 20% within two weeks due to investor optimism. Huahong Semiconductor jumped 11%.

    CNN has reached out to Gallagher’s and McCaul’s offices for comment, but has yet to receive a response.

    Huawei was added to a blacklist in May 2019 by the US Commerce Department over national security concerns. That means companies have to apply for US export licenses to supply technology to Huawei.

    SMIC was also put on the same list in 2020, as US officials were concerned it could use American technology to aid the Chinese military. SMIC has denied having any relationship with the Chinese military.

    “The fact that China has achieved a big breakthrough in [semiconductor] tech will likely create more debate in the US about the effectiveness of sanctions,” said the Jefferies analysts.

    They expect the Biden administration to tighten chips ban on China, which was introduced in October 2022, in the next few months, further limiting China’s access to advanced US semiconductors.

    “Overall the US-China tech war is likely to escalate,” they said.

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  • Meta’s Threads is temporarily blocking searches about Covid-19 | CNN Business

    Meta’s Threads is temporarily blocking searches about Covid-19 | CNN Business

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    CNN
     — 

    Threads, the much-hyped social media app from Facebook-parent Meta, is taking heat for blocking searches for “coronavirus,” “Covid,” and other pandemic-related queries.

    The tech giant’s decision to block coronavirus-related searches on its service comes as the United States deals with a recent uptick in Covid-19 hospitalizations, per CDC data, and more than three years into the global pandemic.

    News of Threads blocking searches related to the coronavirus was first reported by The Washington Post.

    A Meta spokesperson told CNN that the company just began rolling out keyword search for Threads to additional countries last week.

    “The search functionality temporarily doesn’t provide results for keywords that may show potentially sensitive content,” the statement added. “People will be able to search for keywords such as ‘COVID’ in future updates once we are confident in the quality of the results.” 

    As of Monday, searches on the Threads app conducted by CNN for “coronavirus,” “Covid” and “Covid-19” yielded a blank page with the text: “No results.” Searches for “vaccine” also prompted no results. Typing any of these queries into the Threads app does, however, offer a link directing users to the CDC’s website on Covid-19 or vaccinations, depending on the search.

    Meta did not disclose what other keyword searches currently yield no results.

    Meta’s Facebook and other social media platforms faced controversy in the early part of the pandemic for the apparent spread of Covid-19-related misinformation online.

    Meta officially launched Threads in early July, and the app quickly garnered more than 100 million sign-ups in its first week on the heels of months of chaos at Twitter, which is now known as X. But much of the buzz faded somewhat in the weeks that followed as users realized the bare-bones platform still lacked many of the features that made X popular with users.

    Threads released its much-requested web version late last month, and its keyword search about a week ago. But the current limitations around its search function highlights how the platform still has some kinks to work through before it can fully replace the real-time search and engagement experience that social media users have historically relied on with X.

    –CNN’s Clare Duffy contributed to this report.

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  • TikTok fined $368 million in Europe for failing to protect children | CNN Business

    TikTok fined $368 million in Europe for failing to protect children | CNN Business

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    CNN
     — 

    A major European tech regulator has ordered TikTok to pay a €345 million ($368 million) fine after ruling that the app failed to do enough to protect children.

    The Irish Data Protection Commission, which oversees TikTok’s activities in the European Union, said Friday that the company had violated the bloc’s signature privacy law.

    An investigation by the DPC found that in the latter half of 2020, TikTok’s default settings didn’t do enough to protect children’s accounts. For example, it said, newly-created children’s profiles were set to public by default, meaning anybody on the internet could view them.

    TikTok didn’t sufficiently disclose these privacy risks to kids and also used so-called “dark patterns” to guide users toward giving up more of their personal information, the regulator noted.

    In another violation of EU privacy law, a TikTok feature designed as a parental control and known as Family Pairing did not require that an adult overseeing a child’s account be verified as the child’s actual parent or guardian, the DPC said. The lapse meant that theoretically any adult could weaken a child’s privacy safeguards, the regulator said.

    TikTok introduced Family Pairing in April 2020, allowing adults to link their accounts with child accounts to manage screen time, restrict unwanted content and limit direct messaging to children.

    The DPC’s decision gives the company three months to rectify its violations and includes a formal reprimand.

    TikTok didn’t immediately respond to CNN’s request for comment.

    But in a blog post Friday, the company said it “respectfully” disagreed with several aspects of the ruling.

    “Most of the decision’s criticisms are no longer relevant as a result of measures we introduced at the start of 2021,” wrote TikTok’s European privacy chief Elaine Fox.

    The changes TikTok made in early 2021 included making existing and new accounts private by default for users aged 13 to 15, Fox said. She added that later this month, “we will begin rolling out a redesigned account registration flow for new 16- and 17-year-old users” that will default to private settings.

    TikTok did not say Family Pairing would now be verifying an adult’s relationship to the child. But the company said the feature had been strengthened over time with new options and tools. It added that none of the regulator’s findings concluded that TikTok’s age verification measures violated EU privacy law.

    In April, TikTok was also fined in the United Kingdom for a number of breaches of data protection law, including misusing children’s personal data.

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

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

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    New York
    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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  • Biden teases forthcoming executive order on AI | CNN Business

    Biden teases forthcoming executive order on AI | CNN Business

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    CNN
     — 

    The White House plans to introduce a highly anticipated executive order in the coming weeks dealing with artificial intelligence, President Joe Biden said Wednesday.

    “This fall, I’m going to take executive action, and my administration is going to continue to work with bipartisan legislation,” Biden said, “so America leads the way toward responsible AI innovation.”

    Biden offered no details on the contents of the coming order, which the White House had first announced in July. But his remarks offer greater insight into his administration’s timing.

    Biden’s signing of the order would build on an earlier administration proposal for an “AI Bill of Rights.” Civil society groups have urged the Biden administration to require federal agencies to implement the AI Bill of Rights as part of any executive order on the technology. Meanwhile, the US Senate is continuing to educate lawmakers on artificial intelligence in preparation for months of legislative work on the issue.

    In Wednesday’s remarks during a meeting of the Presidential Council of Advisors on Science and Technology, Biden described the recent conversations he’s had with AI leaders and experts.

    “Vast differences exist among them in terms of what potential it has, what dangers there are, and so, I have a keen interest in AI,” Biden said. “I’ve convened key experts on how to harness the power of artificial intelligence for good while protecting people from the profound risk it also presents.”

    “We can’t kid ourselves,” Biden continued. “[There is] profound risk if we don’t do it well.”

    Biden reiterated the United States’ commitment to working with international partners including the United Kingdom on developing safeguards for artificial intelligence.

    The meeting also saw presidential advisers showcasing to Biden several use cases for artificial intelligence. Maria Zuber, the panel’s co-chair, said the examples Biden would see during the meeting would include the use of AI to predict extreme weather linked to climate change; to “create materials that have properties we’ve never been able to create before”; and to “understand the origins of the universe, which is literally as big as it gets.”

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

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

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    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  • NY officials announce legislation aimed at protecting kids on social media | CNN Business

    NY officials announce legislation aimed at protecting kids on social media | CNN Business

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    CNN
     — 

    Two new bills meant to protect children’s mental health online by changing the way they are served content on social media and by limiting companies’ use of their data will be introduced in the New York state legislature, state and city leaders said Wednesday.

    New York Gov. Kathy Hochul and New York Attorney General Letitia James made the announcement at the headquarters of the United Federation of Teachers Manhattan, joined by UFT President Michael Mulgrew, State Senator Andrew Gounardes, Assemblywoman Nily Rozic and community advocates.

    “Our children are in crisis, and it is up to us to save them,” Hochul said, comparing social media algorithms to cigarettes and alcohol. “The data around the negative effects of social media on these young minds is irrefutable, and knowing how dangerous the algorithms are, I will not accept that we are powerless to do anything about it.”

    The “Stop Addictive Feeds Exploitation (SAFE) for Kids Act” would limit what New York officials say are the harmful and addictive features of social media for children. The act would allow users under 18 and their parents to opt out of receiving feeds driven by algorithms designed to harness users’ personal data to keep them on the platforms for as long as possible. Those who opt out would receive chronological feeds instead, like in the early days of social media.

    The bill would also allow users and parents who opt in to receiving algorithmically generated content feeds to block access to social media platforms between 12am and 6am or to limit the total number of hours per day a minor can spend on a platform.

    “This is a major issue that we all feel strongly about and that must be addressed,” James said. “Nationwide, children and teens are struggling with significantly high rates of depression, anxiety, suicidal thoughts and other mental health issues, largely because of social media.”

    The bill targets platforms like Facebook, Instagram, TikTok, Twitter and YouTube, where feeds are comprised of user-generated content along with other material the platform suggests to users based on their personal data. Tech platforms have designed and promoted voluntary tools aimed at parents to help them control what content their kids can see, arguing that the decision about what boundaries to set should be up to individual families. But that hasn’t stopped critics from calling on platforms to do more — or from threatening further regulation.

    “Our children deserve a safer and more secure environment online, free from addictive algorithms and exploitation,” said Gounardes. “Algorithms are the new tobacco. Simple as that.”

    The New York legislation comes amid a raft of similar bills across the country that purport to safeguard young users by imposing tough new rules on platforms.

    States including Arkansas, Louisiana and Utah have passed bills requiring tech platforms to obtain a parent’s consent before creating accounts for teens. Federal lawmakers have introduced a similar bill that would ban kids under 13 from using social media altogether. And numerous lawsuits against social media platforms have accused the companies of harming users’ mental health. The latest of these suits came on Tuesday, when Utah’s attorney general sued TikTok for allegedly misleading consumers about the app’s safety.

    Mulgrew called the New York legislation necessary in part due to a lack of action by the federal government to protect kids.

    “The last time, first and only time that the United States government passed a bill to protect children in social media was 1998,” Mulgrew said, referring to the Children’s Online Privacy Protection Act (COPPA), a federal law that prohibits the collection of personal data from Americans under the age of 13 without parental consent. In July, the US Senate commerce committee voted to advance a bill that would expand COPPA’s protections to teens for the first time.

    New York officials on Wednesday also highlighted risks to children’s privacy online, including the chance their location or other personal data could fall into the hands of human traffickers and others who might prey on youth.

    “While other states and countries have enacted laws to limit the personal data that online platforms can collect from minors, no such restrictions currently exist in New York,” a press release from earlier Wednesday stated. “The two pieces of legislation introduced today will add critical protections for children and young adults online.”

    The New York Child Data Protection Act would protect children’s data online by prohibiting all online sites from collecting, using, sharing or selling the personal data of anyone under 18 for the purposes of advertising, without informed consent or unless doing so is strictly necessary for the purpose of the website. For users under 13, this informed consent must come from a parent or guardian.

    Both bills would authorize the attorney general to bring an action to enjoin or seek damages or civil penalties of up to $5,000 per violation and would allow parents or guardians of minors to sue for damages of up to $5,000 per user incident or for actual damages, whichever is greater.

    The US Department of Health and Human Services says that while social media provides some benefits, it also presents “a meaningful risk of harm to youth.” The Surgeon General’s Social Media and Youth Mental Health Advisory released in May said children and adolescents who spend more than three hours a day on social media face double the risk of mental health problems like depression and anxiety, a finding the report called “concerning” given a recent survey that showed teens spend an average of 3.5 hours a day on social media.

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  • Apple continues its sweep to roll out USB-C to more devices | CNN Business

    Apple continues its sweep to roll out USB-C to more devices | CNN Business

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    CNN
     — 

    Apple

    (AAPL)
    quietly announced its next-generation Pencil that works with iPads and now includes USB-C charging.

    The change comes nearly a month after Apple retired its Lightning charger, a milestone moment toward universal charging amid pressure from EU regulators.

    Like previous models, the third-generation Apple Pencil is intended for taking notes, sketching and marking up documents. It also supports the hover feature, which allows users to preview and switch between different tools and app controls, when used with a 12.9-inch iPad Pro 12.9-inch (6th generation) and 11-inch iPad Pro (4th generation). The price is $79, down $20 from the second-generation Apple Pencil and $50 less than the original.

    The biggest change to the latest model comes to the charging system, which is noteworthy not only because the company has been resistant to making the switch for years but because it’s about to make charging that much easier for its customers.

    At its iPhone 15 event in September, the company announced all of its next-generation smartphones and new AirPods Pro will launch with USB-C charging. Apple previously switched its iPads and MacBooks to USB-C charging, but the push to finally add it to iPhones came 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. In doing so, however, Apple will give up control of its wired charging ecosystem, and identifying good chargers from bad ones won’t be obvious to many consumers.

    Although Apple does not break out its Pencil sales numbers, David McQueen, a director at ABI Research, estimates about 42 million have been sold since it launched in 2015, considering 420 million iPads have been sold since then (assuming 10% or fewer of these consumers have bought an Apple Pencil).

    “I’d have to think it’d be this low because of its relatively high price, high-end use case, and the availability of much cheaper alternatives that are capable of working with iPad,” he said.

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  • Dozens of states sue Instagram-parent Meta over ‘addictive’ features and youth mental health harms | CNN Business

    Dozens of states sue Instagram-parent Meta over ‘addictive’ features and youth mental health harms | CNN Business

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    CNN
     — 

    Dozens of states sued Instagram-parent Meta on Tuesday, accusing the social media giant of harming young users’ mental health through allegedly addictive features such as infinite news feeds and frequent notifications that demand users’ constant attention.

    In a federal lawsuit filed in California by 33 attorneys general, the states allege that Meta’s products have harmed minors and contributed to a mental health crisis in the United States.

    “Meta has profited from children’s pain by intentionally designing its platforms with manipulative features that make children addicted to their platforms while lowering their self-esteem,” said Letitia James, the attorney general for New York, one of the states involved in the federal suit. “Social media companies, including Meta, have contributed to a national youth mental health crisis and they must be held accountable.”

    Eight additional attorneys general sued Meta on Tuesday in various state courts around the country, making similar claims as the massive multi-state federal lawsuit.

    And the state of Florida sued Meta in its own separate federal lawsuit, alleging that Meta misled users about potential health risks of its products.

    Tuesday’s multistate federal suit — filed in the US District Court for the Northern District of California — accuses Meta of violating a range of state-based consumer protection statutes, as well as a federal children’s privacy law known as COPPA that prohibits companies from collecting the personal information of children under 13 without a parent’s consent.

    “Meta’s design choices and practices take advantage of and contribute to young users’ susceptibility to addiction,” the complaint reads. “They exploit psychological vulnerabilities of young users through the false promise that meaningful social connection lies in the next story, image, or video and that ignoring the next piece of social content could lead to social isolation.”

    The federal complaint calls for court orders prohibiting Meta from violating the law and, in the case of many states, unspecified financial penalties.

    “We share the attorneys generals’ commitment to providing teens with safe, positive experiences online, and have already introduced over 30 tools to support teens and their families,” Meta said in a statement. “We’re disappointed that instead of working productively with companies across the industry to create clear, age-appropriate standards for the many apps teens use, the attorneys general have chosen this path.”

    The wave of lawsuits is the result of a bipartisan, multistate investigation dating back to 2021, Colorado Attorney General Phil Weiser said at a press conference Tuesday, after Facebook whistleblower Frances Haugen came forward with tens of thousands of internal company documents that she said showed how the company knew its products could have negative impacts on young people’s mental health.

    “We know that there were decisions made, a series of decisions to make the product more and more addictive,” Tennessee Attorney General Jonathan Skrmetti told reporters. “And what we want is for the company to undo that, to make sure that they are not exploiting these vulnerabilities in children, that they are not doing all the little, sophisticated, tricky things that we might not pick up on that drive engagement higher and higher and higher that allowed them to keep taking more and more time and data from our young people.”

    Tuesday’s multipronged legal assault also marks the newest attempt by states to rein in large tech platforms over fears that social media companies are fueling a spike in youth depression and suicidal ideation.

    “There’s a mountain of growing evidence that social media has a negative impact on our children,” said California Attorney General Rob Bonta, “evidence that more time on social media tends to be correlated with depression with anxiety, body image issues, susceptibility to addiction and interference with daily life, including learning.”

    The suits follow a raft of legislation in states ranging from Arkansas to Louisiana that clamp down on social media by establishing new requirements for online platforms that wish to serve teens and children, such as mandating that they obtain a parent’s consent before creating an account for a minor, or that they verify users’ ages.

    In some cases, the tech industry has challenged those laws in court — for example, by claiming that Arkansas’ social media law violates residents’ First Amendment rights to access information.

    New Hampshire Attorney General John Formella said the states expect Meta to mount a similar defense but that the company will not succeed because the multistate suit targets Meta’s conduct, not speech.

    Formella added that in addition to consumer protection claims, New Hampshire is also bringing negligence and product liability claims as part of the federal suit.

    The complaints filed in state courts allege violations of various state-specific laws. For example, the complaint from District of Columbia Attorney General Brian Schwalb accuses Meta of violating the district’s consumer protection statute by misleading the public about the safety of company platforms.

    Tuesday’s lawsuits come days before a federal judge in California is set to consider a slew of similar allegations against the wider tech industry. In a hearing Friday morning, District Judge Yvonne Gonzalez Rogers is expected to hear arguments by Google, Meta, Snap and TikTok urging her to dismiss nearly 200 complaints involving private plaintiffs that have accused the companies of addicting or harming their users.

    It is possible that Tuesday’s multistate suit could be merged with the consumers’ cases, said Weiser, adding that the main difference of the multistate case is that it could lead to nationwide relief.

    “The coordination that we bring across the AG community, we believe is invaluable to this,” Weiser said.

    Participating in Tuesday’s multistate federal suit are California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Virginia, Washington, West Virginia and Wisconsin.

    The additional suits filed in state courts were brought by the District of Columbia, Massachusetts, Mississippi, New Hampshire, Oklahoma, Tennessee, Utah and Vermont.

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  • How Biden’s SAVE student loan repayment plan can lower your bill | CNN Politics

    How Biden’s SAVE student loan repayment plan can lower your bill | CNN Politics

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    Washington
    CNN
     — 

    While the Supreme Court struck down President Joe Biden’s student loan forgiveness program in late June, a separate and significant change to the federal student loan system is moving ahead.

    Eligible borrowers can now enroll in a new income-driven repayment plan that could lower their monthly bills and reduce the amount they pay back over the lifetime of their loans.

    If borrowers apply this summer, the changes to their bills would take effect before payments resume in October after the yearslong pandemic pause.

    Once the plan, which Biden is calling SAVE (Saving on a Valuable Education), is fully phased in next year, some people will see their monthly bills cut in half and remaining debt canceled after making at least 10 years of payments.

    Unlike Biden’s blocked one-time forgiveness program, the new repayment plan will provide benefits for both current and future borrowers who sign up for it.

    But the benefits will come at a cost to the government. Estimates vary, depending on how many borrowers end up enrolling in the plan, ranging from $138 billion to $475 billion over 10 years. As a comparison, Biden’s student loan forgiveness program was expected to cost about $400 billion.

    The SAVE repayment plan has gone through a formal rulemaking process at the Department of Education. The agency has previously created several other income-driven repayment plans in the same manner without facing a successful legal challenge.

    Some parts of the SAVE plan will be implemented this summer and others will take effect in July 2024. Here’s what borrowers need to know.

    Currently, there are several different kinds of income-driven repayment plans for borrowers with federal student loans. The new SAVE plan will essentially replace one of those, known as REPAYE (Revised Pay As You Earn), while the others are phased out for new borrowers.

    Under these plans, payments are based on a borrower’s income and family size, regardless of how much outstanding student debt is owed.

    There is also a forgiveness component. After making at least 10 years of payments, a borrower’s remaining balance is wiped away.

    Borrowers must have federally held student loans to qualify for the SAVE repayment plan. These include Direct subsidized, unsubsidized and consolidated loans, as well as PLUS loans made to graduate students.

    Parents who took out a federal PLUS loan to help their child pay for college are not eligible for the new repayment plan.

    Borrowers with Federal Family Education Loans, known as FFEL, or Perkins Loans that are held by a commercial lender rather than the government will need to consolidate into a Direct loan in order to qualify.

    Private student loans do not qualify for the new SAVE repayment plan or any other federal repayment plan.

    Borrowers can apply for the SAVE plan by submitting a recently updated application for income-driven repayment plans found here.

    The application may be available intermittently during an initial beta testing period, according to the Department of Education. If the application is not available, try again later.

    Applications submitted during the beta period will not need to be resubmitted once a full website launches later this summer.

    Borrowers can expect to receive an email confirmation after applying.

    People who are already enrolled in the REPAYE repayment plan will be automatically switched to the SAVE plan.

    Borrowers can log in to StudentAid.gov and go to their My Aid page to see what repayment plan they are enrolled in.

    The Department of Education says that it will process applications submitted this summer before payments resume in October.

    “It may take your servicer a few weeks to process your request, because they will need to obtain documentation of your income and family size,” according to the department’s website.

    Under the SAVE plan, monthly payments can be as small as $0.

    Other income-driven repayment plans already offer a $0 monthly payment for some borrowers. But the new SAVE plan lowers the qualifying threshold.

    A single borrower earning $32,800 or less or a borrower with a family of four earning $67,500 or less will see their payments set at $0 if enrolled in SAVE.

    Increase in protected income threshold: Like in existing income-driven repayment plans, a borrower’s discretionary income, generally what’s left after paying for necessities like housing, food and clothing, will be shielded from student loan payments.

    The new SAVE plan recalculates discretionary income so that it’s equal to the difference between a borrower’s adjusted gross income and 225% of the poverty level. Existing income-driven plans calculate discretionary income as the difference between income and 150% of the poverty level.

    This change will result in lower payments for borrowers.

    Interest limit: Under the new payment plan, unpaid interest will not accrue if a borrower makes a full monthly payment.

    That means that a borrower’s balance won’t increase even if the monthly payment doesn’t cover the monthly interest. For example: If $50 in interest accumulates each month and a borrower has a $30 payment, the remaining $20 would not be charged.

    Lower payments for married borrowers: Married borrowers who file their taxes separately will no longer be required to include their spouse’s income in their payment calculation for SAVE. This could lower monthly payments for two-income households.

    Automatic recertification: Borrowers will now be able to allow the Department of Education to access their latest tax return. This will make the application process easier because borrowers won’t have to manually provide income or family size information. It will also allow the department to automatically recertify borrowers for the payment plan on an annual basis.

    Cut payments in half: Payments on loans borrowed for undergraduate school will be reduced from 10% to 5% of discretionary income.

    Borrowers who have loans from both undergraduate and graduate school will pay a weighted average of between 5% and 10% of their income based upon the original principal balances of their loans.

    For example, a borrower with $20,000 from their undergraduate education and $60,000 from graduate school will pay 8.75% of their income, according to a fact sheet provided by the Biden administration.

    Shorter time to forgiveness: Currently, borrowers who pay for 20 or 25 years under an income-driven repayment plan will see their remaining balance wiped away.

    Under the new SAVE plan, those who borrowed $12,000 or less will see their debt forgiven after paying for just 10 years. Every additional $1,000 borrowed above that amount would add one year of monthly payments to the required time a borrower must pay.

    Borrowers who consolidate their loans will receive partial credit for their previous payments toward forgiveness.

    Borrowers will also automatically receive credit toward forgiveness for certain periods of deferment and forbearance, as well be given the option to make additional “catch-up” payments to get credit for all other periods of deferment or forbearance.

    Automatically enroll struggling borrowers: Borrowers who are 75 days late on their payments will be automatically enrolled in the best income-driven plan for them, as long as they have agreed to allow the Department of Education to securely access their tax information.

    This story has been updated with additional information.

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  • Baidu and SenseTime launch ChatGPT-style AI bots to the public | CNN Business

    Baidu and SenseTime launch ChatGPT-style AI bots to the public | CNN Business

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    Hong Kong
    CNN
     — 

    Chinese tech firms Baidu and SenseTime launched their ChatGPT-style AI bots to the public on Thursday, marking a new milestone in the global AI race.

    Baidu has opened public access to its ERNIE Bot, allowing users to conduct AI-powered searches or carry out an array of tasks, from creating videos to providing summaries of complex documents.

    The news sent its shares 3.1% higher in New York on Wednesday and 4.7% higher in Hong Kong on Thursday.

    Baidu (BIDU) is among the first companies in China to get regulatory approval for the rollout, and it is the first to launch this type of service publicly, according to a person familiar with the matter.

    Until Thursday, ERNIE Bot, also called “Wenxin Yiyan” in Chinese, had been offered only to corporate clients or select members of the public who requested access through a waitlist.

    Meanwhile, SenseTime, an AI startup based in Hong Kong, also announced the public launch of its SenseChat platform on Thursday. The company’s shares surged 4% in Hong Kong following the news

    “We are pleased to announce that starting today, it is fully available to serve all users,” a SenseTime spokesperson told CNN in a statement.

    China published new rules on generative AI in July, becoming one of the world’s first countries to regulate the industry. The measures took effect on August 15.

    Baidu has been a frontrunner in China in the race to capitalize on the excitement around generative artificial intelligence, the technology that underpins systems such as ChatGPT or its successor, GPT-4. The latter has impressed users with its ability to simplify coding, rapidly create a website from a simple sketch and pass exams with high marks.

    Baidu announced its own iteration in February, giving it an early advantage in China, according to analysts. It unveiled ERNIE a month later, showing how it could generate a newsletter, come up with a corporate slogan and solve a math riddle.

    Since then, competitors such as Alibaba (BABA) and SenseTime have announced plans to launch their own ChatGPT-style tools, adding to the list of Chinese businesses jumping on the bandwagon. Alibaba told CNN Thursday that it had filed for regulatory approval for its own bot, which was introduced in April.

    The company is now waiting to officially launch and “the initial list of companies that have received the approval is expected to be released by relevant local departments within one week,” said an Alibaba Cloud spokesperson.

    Some critics say the new offerings from Chinese firms will add fuel to an existing US-China rivalry in emerging technologies. Baidu CEO Robin Li has tried to shake off that comparison, saying previously that the company’s platform “is not a tool for the confrontation between China and the United States.”

    The firm’s new feature — which will be embedded in its popular search engine, among its other offerings — follows a similar feature introduced by Alphabet’s Google (GOOGL) in May, which allows users to search the web using its AI chatbot.

    Baidu says its service stands out because of its advanced grasp of Chinese queries, as well as its ability to generate different types of responses, such as text, images, audio and video.

    By comparison, GPT-4 is also able to analyze photos, but currently only generates text responses, according to its developer, OpenAI.

    While ERNIE Bot is available globally, its interface is in Chinese, though users will be able to enter both Chinese and English prompts, a Baidu spokesperson told CNN.

    SenseTime, which unveiled its service in April, has touted a range of features, which it says allow users to write or debug code more efficiently or receive personalized medical advice from a virtual health consultation assistant.

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  • Landmark Google trial opens with sweeping DOJ accusations of illegal monopolization | CNN Business

    Landmark Google trial opens with sweeping DOJ accusations of illegal monopolization | CNN Business

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    CNN
     — 

    US prosecutors opened a landmark antitrust trial against Google on Tuesday with sweeping allegations that for years the company intentionally stifled competition challenging its massive search engine, accusing the tech giant of spending billions to operate an illegal monopoly that has harmed every computer and mobile device user in the United States.

    In opening remarks before a federal judge in Washington, lawyers for the Justice Department alleged that Google’s negotiation of exclusive contracts with wireless carriers and phone makers helped cement its dominant position in violation of US antitrust law.

    The Google case has been described as one of the largest US antitrust trials since the federal government took on Microsoft in the 1990s, and involves some similar arguments about the tying of multiple proprietary products. The multi-week trial is expected to feature witness testimony from Google CEO Sundar Pichai, as well as other senior executives or former employees from Google, Apple, Microsoft and Samsung.

    The effects of Google’s alleged misconduct are vast, DOJ lawyer Kenneth Dintzer told the court.

    “This case is about the future of the internet, and whether Google’s search engine will ever face meaningful competition,” Dintzer said, adding that Google pays more than $10 billion a year to Apple and other companies to ensure that Google is the default or only search engine available on browsers and mobile devices used by millions.

    Also anticompetitive, the Justice Department said, are Google’s contracts to ensure that Android devices come with Google apps and services — including Google search — preinstalled.

    The deals guarantee a steady flow of user data to Google that further reinforces its monopoly, the US government said, leading to other consequences such as harms to consumer privacy and higher advertising prices.

    “This feedback loop, this wheel has been turning for 12 years, and it always turns to Google’s advantage,” Dintzer said. The practice ultimately affects what consumers see in search results and prevents new rivals from gaining scale and market share, he added.

    For Google’s opening statement, attorney John Schmidtlein said that Apple’s decision to make Google the default search engine in its Safari browser demonstrates how Google’s search engine is the superior product consumers prefer.

    “Apple repeatedly chose Google as the default because Apple believed it was the best experience for its users,” he said.

    The Google case “could not be more different” from the historic Microsoft litigation at the turn of the millennium, Schmidtlein continued.

    Where the Microsoft case revolved around that company’s alleged harms to Netscape, a small browser maker, the Google case is based on claims that Google search has harmed a much larger and more powerful entity: Microsoft and its Bing search engine, Schmidtlein said.

    “Google competed on the merits to win preinstallation and default status” on consumer devices and browsers, he insisted, attacking Microsoft as a failed search engine developer.

    “The evidence will show that Microsoft’s Bing search engine failed to win customers because Microsoft did not invest [and] did not innovate,” Schmidtlein added. “At every critical juncture, the evidence will show that they were beaten in the market.”

    And Schmidtlein argued that forbidding Google from being able to compete for default status on browsers and devices would lead to its own harms to competition in search, stating that contracts ensuring that Android devices come with certain apps preinstalled such as Google Maps and Gmail also promotes competition — against Apple.

    “Google’s Android agreements are important components of a business model that has sustained the most important competitor to Apple for mobile devices in the United States,” Schmidtlein said.

    Google has previously said that consumers choose Google’s search engine because it is the best and that they prefer it, not because of anticompetitive practices.

    But DOJ prosecutors said Tuesday that they plan to present evidence in the case that Google knew what it was doing was illegal and that the company “hid and destroyed documents because they knew they were violating the antitrust laws.

    “The harm from Google contracts affects every phone and computer in the country,” Dintzer said.

    Kent Walker, Google’s president of global affairs, and Rep. Ken Buck from Colorado were in attendance for the opening. Buck, a vocal tech industry critic, is the former top Republican on the House antitrust subcommittee — which in 2020 released a widely publicized investigative report finding that Amazon, Apple, Google and Facebook enjoyed “monopoly power.”

    Kent Walker, President of Global Affairs and Chief legal officer of Alphabet Inc., arrives at federal court on September 12, 2023 in Washington, DC. Google will defend its default-search deals in an antitrust trial against the U.S. Justice Department which begins today.

    The trial marks the culmination of two ongoing lawsuits against Google that started during the Trump administration.

    In separate complaints, the Justice Department and dozens of states accused Google in 2020 of abusing its dominance in online search but were eventually consolidated into a single case.

    Google’s search business provides more than half of the $283 billion in revenue and $76 billion in net income Google’s parent company, Alphabet, recorded in 2022. Search has fueled the company’s growth to a more than $1.7 trillion market capitalization.

    “This is a backwards-looking case at a time of unprecedented innovation,” said Walker in a statement, “including breakthroughs in AI, new apps and new services, all of which are creating more competition and more options for people than ever before. People don’t use Google because they have to — they use it because they want to. It’s easy to switch your default search engine — we’re long past the era of dial-up internet and CD-ROMs.”

    The trial may also be a bellwether for the more assertive antitrust agenda of the Biden administration.

    At the time the lawsuit was first filed, US antitrust officials did not rule out the possibility of a Google breakup, warning that Google’s behavior could threaten future innovation or the rise of a Google successor.

    Separately, a group of states, led by Colorado, made additional allegations against Google, claiming that the way Google structures its search results page harms competition by prioritizing the company’s own apps and services over web pages, links, reviews and content from other third-party sites.

    But the judge overseeing the case, Judge Amit Mehta in the US District Court for the District of Columbia, tossed out those claims in a ruling last month, narrowing the scope of allegations Google must defend and saying the states had not done enough to show a trial was necessary to determine whether Google’s search results rankings were anticompetitive.

    Despite that ruling, the trial represents the US government’s furthest progress in challenging Google to date. Mehta has said Google’s pole position among search engines on browsers and smartphones “is a hotly disputed issue” and that the trial will determine “whether, as a matter of actual market reality, Google’s position as the default search engine across multiple browsers is a form of exclusionary Conduct.”

    In January, meanwhile, the Biden administration launched another antitrust suit against Google in opposition to the company’s advertising technology business, accusing it of maintaining an illegal monopoly. That case remains in its early stages at the US District Court for the Eastern District of Virginia.

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

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

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    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  • House Democrats weigh risky strategy: Whether to save McCarthy | CNN Politics

    House Democrats weigh risky strategy: Whether to save McCarthy | CNN Politics

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    CNN
     — 

    House Democrats have begun internal discussions about how to deal with the prospects of a chaotic situation: The possibility that Speaker Kevin McCarthy could lose his job in an unprecedented vote on the floor.

    While no decisions have been made, some of the party’s moderates are privately signaling they’d be willing to cut a deal to help McCarthy stave off a right-wing revolt – as long as the speaker meets their own demands.

    Publicly, Democratic leader Hakeem Jeffries has not weighed in on how he’d want his members to manage a challenge to McCarthy’s speakership, saying it’s hypothetical at this point. But privately, Jeffries has counseled his members to keep their powder dry, according to multiple sources, a recognition it’s better for Democrats to keep their options open as the government funding fight plays outs.

    “If somehow Democrats are asked to be helpful, it’s not just going to have to be out of the kindness of our hearts,” Democratic Rep. Dan Kildee of Michigan, told CNN. “If Kevin can’t govern with just his part – which clearly he can’t – and he wants to have a conversation with us about how to do that, we are going to have a policy conversation.”

    Asked recently by CNN if he would need to rely on Democrats to help save him, McCarthy would not say.

    “I am not worried about that,” he said.

    The private discussions have picked up steam in recent days, as a handful of hardline GOP members dig in against a series of spending bills – an effort that could catapult the government into a shutdown – and as any move the speaker takes to advance a short-term spending bill with Democrats could trigger the end of his speakership.

    If McCarthy’s position was threatened with a so-called motion to vacate, and there were five Republicans backing it, Democrats would have a major role in deciding McCarthy’s fate.

    But members who spoke to CNN made clear that any Democratic help would come at a cost. And their asking price for saving his speakership, Democratic members say, is a bipartisan deal to avoid a shutdown – a route McCarthy is not yet prepared to take, as Republicans are still trying to find consensus on a GOP plan to fund the government.

    “I think it is fair to say Democrats have a responsibility to be preparing for the possibility that there will be some sort of upheaval,” one Democratic member told CNN.

    One of the strategies being discussed by Democrats is to vote “present” or vote to kill it all together if a motion to oust McCarthy is brought to the floor. Voting present would change the threshold and make it harder for McCarthy’s critics to oust him, which would require a majority of those voting in order to succeed.

    It’s a complicated dance for Democrats, who don’t want to be seen as saving McCarthy – especially after he just launched an impeachment inquiry into President Joe Biden – and could open them up to backlash on the left. But some Democrats also fear the potential alternative: a government shutdown and the prospect of an even more right-wing lawmaker ascending to the speakership if McCarthy is ousted – or the House being paralyzed with no candidate able to win 218 votes to be elected speaker.

    “If he just jams us with something awful, and they still try to kill him, and that’s gonna be his approach to work with the Freedom Caucus, there’s less incentive (to help him),” said one Democrat. “Still, even then, you’re gonna have a lot of people who say: ‘Well I think what’s behind door No. 3 might be a lot worse.’”

    “I think if he’s willing to work together on things,” the member said, adding, “There will be enough of us to protect him.”

    It’s still not clear when or if McCarthy’s detractors would try and push the issue. Republican Rep. Matt Gaetz of Florida – one of McCarthy’s most vocal critics – would not specify Wednesday when he would move to force a vote on removing McCarthy as speaker. But he warned McCarthy against working with Democrats, and said House Republicans who work with Democrats to avoid a shutdown would be signing their own “political death warrant.”

    “If Speaker McCarthy relies on Democrats to pass a continuing resolution, I would call the Capitol moving truck to his office pretty soon because my expectation would be he’d be out of the speaker’s office quite promptly,” said Gaetz, who privately told his colleagues Wednesday there are seven Republicans who would vote against any stop-gap measure, enough to kill it if all Democrats oppose a conservative plan.

    With less than two weeks before a government shutdown, Democrats are watching the speaker’s actions carefully on spending and taking whether McCarthy is willing to cut his right flank lose in pursuit of a bipartisan deal on spending – short-handed on Capitol Hill as a continuing resolution or a CR – into consideration for how they’d act on the floor if a motion to vacate were brought forward.

    “If we were actually part of the deal, like actually part of a commonsense agreement on CR and budget, I think you would find a significant group of people willing to vote present,” one Democrat said.

    Meanwhile, as frustration in the GOP has reached a fever pitch, private talks between moderate Democrats and Republicans about a bipartisan funding deal have grown more serious: the bipartisan Problem Solvers Caucus has developed a framework for a plan, and Jeffries stopped by their meeting on Wednesday.

    Leaving the meeting, Jeffries called for a bipartisan agreement in line with what was already negotiated in the debt ceiling package – a deal cut by McCarthy but later abandoned amid pressure from his right flank to seek deeper cuts.

    “We need to find a bipartisan agreement consistent with what was previously reached,” he said.

    But the mechanism for putting such a bill on the floor is complicated. One possible option is for GOP members of the group to sign onto a so-called discharge petition, a complicated and time-consuming procedural mechanism. If five Republicans did so, it would trigger a process that could force the bill onto the floor for a vote without McCarthy having to do it. But that process would likely take too long at this point to avert a shutdown.

    Members are also discussing other procedural options with the House parliamentarian, lawmakers told CNN.

    “Failure is not an option. We’re gonna do everything we can to prevent a shutdown,” said Republican Rep. Don Bacon, who represents a swing district in Nebraska.

    Bacon warned that he would cut a deal with Democrats if they reach an impasse with conservative hardliners.

    “Well, in the end, if not, we will have to work across the aisle and get it done. I think people got that message,” he said.

    But the growing consensus is that with time running out, the most viable path to avoid a government shutdown is for the speaker to cut his right flank loose and make a deal with the middle – and then Democrats could bail McCarthy out from the inevitable vote to oust him that would be triggered by that scenario.

    Democrats considering bailing out McCarthy say it wouldn’t necessarily stop there.

    “We are having pretty broad conversations about like, use your imagination in terms of how you re-envision … this place is not working,” the member said. “I don’t think it would ever be as transactional as ‘OK, I get a vote on my bill and I am done …’ because you can’t trust him. I think then it becomes everything from what is committee presentation to how bills get pulled to the floor and how are those decisions made?”

    An opportunity to extract concessions from McCarthy, however, likely would never be enough for some Democrats. For Democrats, extending a lifeline to McCarthy could mean facing a primary challenge back home, not to mention the fact that any goodwill McCarthy might have still had with some Democrats evaporated with his announcement he was launching an impeachment inquiry into Biden.

    “There is not a chance in hell I would vote for the speaker. I barely have words. What reasonable thing has he done? What demonstrable outreach has he made to try to bring the House together, to work together in a deliberative and cooperative way,” Democratic Rep. Debbie Wasserman Schultz of Florida told CNN. “The real answer is I don’t see a scenario right now in which he would warrant my support, but I also would never say never.”

    Democratic Rep. Dean Phillips of Minnesota recently said “right now, no,” he and other Democrats would not come to McCarthy’s rescue if he faced a motion to vacate from his own party.

    “If you’d asked about two months ago I would have said absolutely. But I think sadly his behavior is unprincipled, it’s unhelpful to the country,” he said.

    He continued later: “I understand the position he’s in but these are times when people have to make a choice. Do you pander to the few or do you take care of the many?”

    Several Democrats argued that past Republican speakers – like Paul Ryan or John Boehner – may have been worth saving. But McCarthy, they argue is different.

    If McCarthy were challenged, it may only take a handful of Democrats to save him. Aside from voting “present,” they could also just vote to table the resolution – a procedural workaround that would essentially kill the effort. But, letting members walk the plank alone could be politically dangerous for moderates. Voting in total Democratic unison could shield members from the base.

    “I think we need to have a party position on it. I don’t think that has been resolved yet. It is still evolving,” Democratic Rep. Richard Neal of Massachusetts told CNN.

    Many Democrats are still weighing their options.

    “You know there are so many variables right now, I really don’t have an answer,” Rep. Mary Gay Scanlon of Pennsylvania told CNN.

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  • So long, robotic Alexa. Amazon’s voice assistant gets more human-like with generative AI | CNN Business

    So long, robotic Alexa. Amazon’s voice assistant gets more human-like with generative AI | CNN Business

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    CNN
     — 

    Amazon’s Alexa is about to bring generative AI inside the house, as the company introduces sweeping changes to how its ubiquitous voice assistant both sounds and functions.

    The company announced a generative AI update for Alexa and, subsequently, of all Echo products dating back to 2014, at a press event Wednesday at its new campus in Arlington, Virginia. Alexa will be able to resume conversations without a wake word, respond more quickly, learn user preferences, field follow-up questions and change its tone based on the topic. Alexa will even offer opinions, such as which movies should have won an Oscar but didn’t.

    Generative AI refers to a type of artificial intelligence that can create new content, such as text and images, in response to user prompts.

    “It feels just like talking to a human being,” an Amazon executive claimed.

    The updates come as Amazon tries to keep pace with a new wave of conversational AI tools that have accelerated the artificial intelligence arms race in the tech industry and rapidly reshaped what consumers may expect from their tech products. The company did not disclose when the updates will make their way into products.

    In a live demo, Dave Limp, senior VP of devices and services at Amazon, asked Alexa about his favorite college football team without ever stating the name. (Limp said he previously told Alexa and it remembered). If his favorite team wins, Alexa responds joyfully; if they lose, Alexa will respond with empathy.

    When Limp said “Alexa, let’s chat,” it launched a special mode that allowed for a back-and-forth exchange on various topics. Notably, Limp paused several times to address the audience and resumed the conversation with Alexa without using the “Alexa” wake word, picking up where they left off.

    The demo wasn’t without hiccups – Alexa’s response time at times lagged – but the voice assistant had far more personality, spoke in a more natural and expressive tone, and kept the conversation flowing back and forth.

    Although the company did not outline specific safeguards – some other large-language models have previously gone off the rails – it said on its website “it will design experiences to protect our customers’ privacy and security, and to give them control and transparency.”

    The company also said new developer tools will allow companies to work alongside its large-language model. In a blog post, Amazon said it is already partnering with a handful of companies, such as BMW, to develop conversational in-car voice assistant capabilities.

    Rowan Curran, an analyst at Forrester Research, said the news marks a major step forward in bringing generative AI to the home and allowing it to accomplish everyday tasks. By connecting speech-to-text to external systems and by using a large language model to understand and produce natural speech, this is “where we can begin to see the future of how we will use this technology near-ubiquitously in our everyday lives.”

    Some US users will get access to the changes through a free preview on existing Echo devices. Over the years, Alexa has been infused in countless Echo products, from its speaker and hub lineup to clocks, microwaves,and eyeglasses.

    Amazon also said it will be bringing generative AI to its Fire TV platform, allowing users to ask more natural, nuanced or open-ended questions about genres, storylines and scenes or make more targeted content suggestions.

    Alexa launched nearly a decade ago and, along with Apple’s Siri, Microsoft’s Cortana, and other voice assistants, were promised to change the way people interacted with technology. But the viral success of ChatGPT has arguably accomplished some of those goals faster and across a wider range of everyday products.

    The effort to continue updating the technology that powers Alexa comes at a difficult moment for Amazon. Like other Big Tech companies, Amazon has slashed staff in recent months and shelved products in an urgent effort to cut costs amid broader economic uncertainty. The Alexa division did not escape unscathed.

    Amazon confirmed plans in January to lay off more than 18,000 employees. In March, the company said about 9,000 more jobs would be impacted. Limp previously told CNN his division lost about 2,000 people, about half of which were from the Alexa team.

    Still, he emphasized innovation around Alexa has not stalled. “We’re not done and won’t be done until Alexa is as good or better than the ‘Star Trek’ computer,” Limp said. “And to be able to do that, it has to be conversational. It has to know all. It has to be the true source of knowledge for everything.”

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  • Indonesia bans e-commerce transactions on social media in major blow to TikTok | CNN Business

    Indonesia bans e-commerce transactions on social media in major blow to TikTok | CNN Business

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    Jakarta
    Reuters
     — 

    Indonesia has banned e-commerce transactions on social media platforms, the trade minister said on Wednesday, in a blow to short video app TikTok, which is doubling down on Southeast Asia’s biggest economy to boost its e-commerce business.

    The government said the move, which takes effect immediately, is aimed at protecting offline merchants and marketplaces, adding that predatory pricing on social media platforms is threatening small and medium-sized enterprises.

    The move comes just three months after TikTok pledged to invest billion of dollars in Southeast Asia, mainly in Indonesia, over the next few years in a major push to build its e-commerce platform TikTok Shop.

    TikTok, owned by China’s ByteDance, has 125 million active monthly users in Indonesia and has been looking to translate the large user base into a major e-commerce revenue source.

    A TikTok Indonesia spokesperson said it would pursue a constructive path forward and was “deeply concerned” with the announcement, “particularly how it would impact the livelihoods of the 6 million” local sellers active on TikTok Shop.

    Indonesia Trade Minister Zulkifli Hasan on Wednesday told reporters that the regulation is intended to ensure “fair and just” business competition, adding that it was also intended to ensure data protection of users.

    He warned of letting social media become an e-commerce platform, shop and bank all at the same time.

    The new regulation also requires e-commerce platforms in Indonesia to set a minimum price of $100 for certain items that are directly purchased from abroad, according to the regulation document reviewed by Reuters, and that all products offered should meet local standards.

    Zulkifli said TikTok had one week to comply with the regulation or face the threat of closure. Indonesia Deputy Trade Minister Jerry Sambuaga earlier this month named TikTok’s live streaming features as an example of people selling goods on social media.

    Research firm BMI said TikTok would be the only business affected by the transaction ban and the move was unlikely to harm the digital marketplace industry’s growth.

    Indonesia’s e-commerce market is dominated by the likes of homegrown tech firm GoTo’s Tokopedia, Sea’s Shopee and Chinese e-commerce giant Alibaba’s Lazada.

    E-commerce transactions in Indonesia amounted to nearly $52 billion last year and of that, 5% took place on TikTok, according to data from consultancy Momentum Works.

    Indonesia is among the few markets where TikTok has launched TikTok Shop, as it seeks to leverage its large user base in the country.

    Its 125 million active monthly users in Indonesia is almost on par with its user figures for Europe and behind US users of more than 150 million. TikTok launched an online shopping service in the United States earlier this month.

    Reactions from retailers were mixed.

    Fahmi Ridho, a vendor selling clothes on TikTok, said the platform was a way for stores to recover from the blow dealt by the Covid-19 pandemic.

    “Sales don’t have to be necessarily through [brick and mortar] shops, you can do it online or wherever,” he said “Everything will still have a portion.”

    But Edri, who goes by one name only and sells clothes at a major wholesale market in Jakarta, agreed with the regulation and stressed that there should be limits on items sold online.

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  • Apple confirms that a bug and some apps are causing iPhone 15 models to overheat | CNN Business

    Apple confirms that a bug and some apps are causing iPhone 15 models to overheat | CNN Business

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    CNN
     — 

    Apple is working on a software fix following reports that some of its new iPhone 15 models are overheating.

    The company told CNN the current overheating issues are not a safety risk and will not affect the long-term performance of impacted iPhone models. It also emphasized that iPhones have internal protections for components to help regulate the temperature if it gets too high.

    Apple also told CNN there are several circumstances that are causing its next-generation lineup to heat up. User complaints started to circulate after the latest iPhones hit stores on September 22.

    “We have identified a few conditions which can cause iPhone to run warmer than expected,” Apple told CNN in a statement.

    To start, overheating can occur with some recently updated third-party apps, causing them to “overload the system,” the company said. Those apps include Instagram, Uber and arcade racing game Asphalt 9.

    “We’re working with these app developers on fixes that are in the process of rolling out,” Apple said in a statement.

    It also said it discovered a bug in iOS 17 impacting some users, and plans to roll out a software update to address the issue. It did not comment on when the fix will be made available.

    In addition, Apple said the device may feel warmer during the first few days after setting up or restoring the device because of “increased background activity.”

    Apple’s support page warns users that a device can get hotter when restoring it from a backup, using graphic-intensive apps, streaming high-quality video, and charging it wirelessly.

    “These conditions are normal, and your device will return to a regular temperature when the process is complete or when you finish your activity,” the company states on the website. “If your device doesn’t display a temperature warning, you can keep using your device.”

    The news comes as demand for the iPhone 15 appears strong. Leading up to launch day, analysts at firms such as Wedbush Securities reported iPhone 15 pre-orders tracking better than originally expected, with a heavy demand on its premium iPhone 15 Pro offerings, especially the Pro Max. Delivery and shipment times have moved to late October through mid-November for various Pro models.

    The new iPhones come as Apple reported in August that sales fell for the third consecutive quarter. iPhone revenue came in at $39.7 billion for the third quarter, marking an approximately 2% year-over-year decline, as users update their devices less often.

    But according to Wedbush estimates, about 250 million iPhones have not been upgraded in more than four years. Advancements made to the processor, camera and charging system, along with discounts from mobile carriers, could be more than enough reason for users to finally upgrade this year.

    The iPhone 15 Pro starts at $1,099, and the iPhone 15 Pro Max starts at $1,199. Apple’s entry-level iPhones, the iPhone 15 and iPhone 15 Plus, cost $799 and $899, respectively.

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