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Tag: iab-business and finance

  • Tesla smashed it last quarter but China’s BYD did even better | CNN Business

    Tesla smashed it last quarter but China’s BYD did even better | CNN Business

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    Hong Kong
    CNN
     — 

    BYD outpaced Tesla in the second quarter as the Chinese carmaker posted record sales of hybrid and electric vehicles.

    Between April and June, BYD

    (BYDDF)
    sold more than 700,000 vehicles, almost double the number sold in the same quarter last year and setting a new quarterly record.

    On Sunday, Tesla

    (TSLA)
    announced it had achieved its best quarterly results. The company produced nearly 480,000 vehicles and delivered over 466,000.

    In June, BYD, which is backed by Warren Buffett, sold a total of 253,046 new energy vehicles, up 89% from a year ago, according to a company filing released Sunday. It was the best monthly sales it has ever achieved. New energy vehicles include both battery powered EVs and plug-in hybrids.

    Tesla and BYD are among the bestselling EV makers in the world. BYD still lags behind Tesla globally in terms of pure EV sales. But in China, the Shenzhen-based company has raced ahead as the top brand.

    In May, BYD sold around 119,000 pure EVs, more than double from the same period last year.

    In comparison, Tesla’s Shanghai Gigafactory delivered 77,695 vehicles in May, up 142% from a year ago, according to the most recent statistics released by the China Association of Automobile Manufacturers.

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  • Twitter threatens to sue Meta after rival app Threads gains traction | CNN Business

    Twitter threatens to sue Meta after rival app Threads gains traction | CNN Business

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    CNN
     — 

    Twitter is threatening Meta with a lawsuit after the blockbuster launch of Meta’s new Twitter rival, Threads — in perhaps the clearest sign yet that Twitter views the app as a competitive threat.

    On Wednesday, an attorney representing Twitter sent Meta CEO Mark Zuckerberg a letter that accused the company of trade secret theft through the hiring of former Twitter employees.

    The letter was first reported by Semafor. A person familiar with the matter confirmed the letter’s authenticity to CNN.

    The letter by Alex Spiro, an outside lawyer for Twitter owner Elon Musk, alleged that Meta had engaged in “systematic, willful, and unlawful misappropriation of Twitter’s trade secrets and other intellectual property.”

    In response to reports on the letter, Musk tweeted: “Competition is fine, cheating is not.”

    The letter goes on to say that Meta hired former Twitter employees who “have improperly retained Twitter documents and electronic devices” and that Meta “deliberately” involved these employees in developing Threads.

    “Twitter intends to strictly enforce its intellectual property rights,” Spiro continued, “and demands that Meta take immediate steps to stop using any Twitter trade secrets or other highly confidential information.”

    Meta spokesperson Andy Stone flatly dismissed the letter. “No one on the Threads engineering team is a former Twitter employee — that’s just not a thing,” he said on Threads.

    In the months since Musk acquired Twitter for $44 billion, the social network has been challenged by a growing number of smaller microblogging platforms, such as the decentralized social network Mastodon and Bluesky, an alternative backed by former Twitter CEO Jack Dorsey. But Twitter has not threatened either with litigation.

    Unlike some Twitter rivals, Threads has experienced rapid growth, with Zuckerberg reporting 30 million user sign-ups in the app’s first day. As of Thursday afternoon, Threads was the number-one free app on the iOS App Store.

    The legal threat may not necessarily lead to litigation but it could be part of a strategy to slow down Meta, said Carl Tobias, a law professor at the University of Richmond.

    “Sometimes lawyers, they threaten but don’t follow through. Or they see how far they can go. That may be the case, but I don’t know that for sure,” Tobias told CNN. He added: “There may be some value to tying it up in litigation and complicating life for Meta.”

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  • US gives ‘green light’ to European countries to train Ukrainians on F-16 fighter jets, Biden official says | CNN Politics

    US gives ‘green light’ to European countries to train Ukrainians on F-16 fighter jets, Biden official says | CNN Politics

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    Washington
    CNN
     — 

    The US will allow European countries to train Ukrainians on F-16 fighter jets, a top Biden administration official confirmed Sunday, a potential boon for Ukraine’s efforts to counter Russia’s air superiority.

    “The president has given a green light and we will allow, permit, support, facilitate and in fact provide the necessary tools for Ukrainians to begin being trained on F-16s, as soon as the Europeans are prepared,” national security adviser Jake Sullivan told CNN’s Jake Tapper on “State of the Union.”

    The decision cements a stark turnaround for President Joe Biden, who said earlier this year that he did not believe that Ukraine needed the F-16s. One of the main issues Kyiv’s ground forces have faced as their counteroffensive gets underway is Russian air power holding them back. Russia still maintains air superiority, which makes it difficult for ground forces to advance.

    In May, Biden had informed G7 leaders that the US would support a joint effort with allies and partners to train Ukrainian pilots on fourth generation aircraft, including F-16s, though it was unclear at the time when that training would star.

    The US-made jet has air-to-air refueling capabilities and is compatible with most NATO weapons already being supplied to Ukraine. Despite first entering production in the 1980s, it has gone through several upgrades, making it more advanced and versatile that any jet Ukraine currently has in its fleet, and a fierce rival for most Russian aircraft, with the exception of newer models that Moscow has hesitated to deploy in Ukraine.

    Sullivan noted Sunday that European allies have said they need several weeks to prepare training abilities and that the US would meet whatever timeline they set out.

    “The United States will not be the hold-up in ensuring that this F-16 training can get underway,” he said.

    Turning to US national defense, Sullivan lamented the House-passed defense policy bill that includes the adoption of several controversial amendments that touched on hot-button social issues.

    “This legislation is never getting to the president’s desk because what you’ve seen from an extreme group of Republicans is to put forward a set of amendments that try to mix domestic social debates with the needs the security needs,” Sullivan said.

    The addition of amendments pushed by conservative hard-liners related to abortion policy and transgender health care access as well as targeting diversity and inclusion programs infuriated Democrats – and will now set up a clash with the Democratic-controlled Senate.

    Pressed to acknowledge that the bill was passed along party lines but supported by a majority of House GOP lawmakers, Sullivan argued that the process had been hijacked by a, “small group of Republicans.”

    “A huge number of folks in the House, including Republicans, in my view, are not particularly interested in having politics come into the middle of the (National) Defense Authorization Act,” Sullivan said, referring to the official name of the defense policy bill.

    “So it was a small group of Republicans who essentially created a trap. A circumstance we don’t need to find ourselves in.”

    CLARIFICATION: This story and headline have been updated to better describe the Ukrainian F-16 trainees.

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  • ‘It almost doubled our workload’: AI is supposed to make jobs easier. These workers disagree | CNN Business

    ‘It almost doubled our workload’: AI is supposed to make jobs easier. These workers disagree | CNN Business

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    CNN
     — 

    A new crop of artificial intelligence tools carries the promise of streamlining tasks, improving efficiency and boosting productivity in the workplace. But that hasn’t been Neil Clarke’s experience so far.

    Clarke, an editor and publisher, said he recently had to temporarily shutter the online submission form for his science fiction and fantasy magazine, Clarkesworld, after his team was inundated with a deluge of “consistently bad” AI-generated submissions.

    “They’re some of the worst stories we’ve seen, actually,” Clarke said of the hundreds of pieces of AI-produced content he and his team of humans now must manually parse through. “But it’s more of the problem of volume, not quality. The quantity is burying us.”

    “It almost doubled our workload,” he added, describing the latest AI tools as “a thorn in our side for the last few months.” Clarke said that he anticipates his team is going to have to close submissions again. “It’s going to reach a point where we can’t handle it.”

    Since ChatGPT launched late last year, many of the tech world’s most prominent figures have waxed poetic about how AI has the potential to boost productivity, help us all work less and create new and better jobs in the future. “In the next few years, the main impact of AI on work will be to help people do their jobs more efficiently,” Microsoft co-founder Bill Gates said in a blog post recently.

    But as is often the case with tech, the long-term impact isn’t always clear or the same across industries and markets. Moreover, the road to a techno-utopia is often bumpy and plagued with unintended consequences, whether it’s lawyers fined for submitting fake court citations from ChatGPT or a small publication buried under an avalanche of computer-generated submissions.

    Big Tech companies are now rushing to jump on the AI bandwagon, pledging significant investments into new AI-powered tools that promise to streamline work. These tools can help people quickly draft emails, make presentations and summarize large datasets or texts.

    In a recent study, researchers at the Massachusetts Institute of Technology found that access to ChatGPT increased productivity for workers who were assigned tasks like writing cover letters, “delicate” emails and cost-benefit analyses. “I think what our study shows is that this kind of technology has important applications in white collar work. It’s a useful technology. But it’s still too early to tell if it will be good or bad, or how exactly it’s going to cause society to adjust,” Shakked Noy, a PhD student in MIT’s Department of Economics, who co-authored the paper, said in a statement.

    Mathias Cormann, the secretary-general of the Organization for Economic Co-operation and Development recently said the intergovernmental organization has found that AI can improve some aspects of job quality, but there are tradeoffs.

    “Workers do report, though, that the intensity of their work has increased after the adoption of AI in their workplaces,” Cormann said in public remarks, pointing to the findings of a report released by the organization. The report also found that for non-AI specialists and non-managers, the use of AI had only a “minimal impact on wages so far” – meaning that for the average employee, the work is scaling up, but the pay isn’t.

    Ivana Saula, the research director for the International Association of Machinists and Aerospace Workers, said that workers in her union have said they feel like “guinea pigs” as employers rush to roll out AI-powered tools on the job.

    And it hasn’t always gone smoothly, Saula said. The implementation of these new tech tools has often led to more “residual tasks that a human still needs to do.” This can include picking up additional logistics tasks that a machine simply can’t do, Saula said, adding more time and pressure to a daily work flow.

    The union represents a broad range of workers, including in air transportation, health care, public service, manufacturing and the nuclear industry, Saula said.

    “It’s never just clean cut, where the machine can entirely replace the human,” Saula told CNN. “It can replace certain aspects of what a worker does, but there’s some tasks that are outstanding that get placed on whoever remains.”

    Workers are also “saying that my workload is heavier” after the implementation of new AI tools, Saula said, and “the intensity at which I work is much faster because now it’s being set by the machine.” She added that the feedback they are getting from workers shows how important it is to “actually involve workers in the process of implementation.”

    “Because there’s knowledge on the ground, on the frontlines, that employers need to be aware of,” she said. “And oftentimes, I think there’s disconnects between frontline workers and what happens on shop floors, and upper management, and not to mention CEOs.”

    Perhaps nowhere are the pros and cons of AI for businesses as apparent as in the media industry. These tools offer the promise of accelerating if not automating copywriting, advertising and certain editorial work, but there have already been some notable blunders.

    News outlet CNET had to issue “substantial” corrections earlier this year after experimenting with using an AI tool to write stories. And what was supposed to be a simple AI-written story on Star Wars published by Gizmodo earlier this month similarly required a correction and resulted in employee turmoil. But both outlets have signaled they will still move forward with using the technology to assist in newsrooms.

    Others like Clarke, the publisher, have tried to combat the fallout from the rise of AI by relying on more AI. Clarke said he and his team turned to AI-powered detectors of AI-generated work to deal with the deluge of submissions but found these tools weren’t helpful because of how unreliably they flag “false positives and false negatives,” especially for writers whose second language is English.

    “You listen to these AI experts, they go on about how these things are going to do amazing breakthroughs in different fields,” Clarke said. “But those aren’t the fields they’re currently working in.”

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  • Google is building an AI tool for journalists | CNN Business

    Google is building an AI tool for journalists | CNN Business

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    CNN
     — 

    Google is developing an artificial intelligence tool for news publishers that can generate article text and headlines, the company said, highlighting how the technology may soon transform the journalism industry.

    The tech giant said in a statement that it is looking to partner with news outlets on the AI tool’s use in newsrooms.

    “Our goal is to give journalists the choice of using these emerging technologies in a way that enhances their work and productivity,” a Google spokesperson said, “just like we’re making assistive tools available for people in Gmail and in Google Docs.”

    The effort was first reported by The New York Times, which said the project is referred to internally as “Genesis” and has been pitched to The Times, The Washington Post and News Corp, which owns The Wall Street Journal.

    Google’s statement did not name those media companies but said the company is particularly focusing on “smaller publishers.” It added that the project is not aimed at replacing journalists nor their “essential role … in reporting, creating, and fact-checking their articles.”

    The new tool comes as tech companies, including Google, race to develop and deploy a new crop of generative AI features into applications used in the workplace, with the promise of streamlining tasks and making employees more productive.

    But these tools, which are trained on information online, have also raised concerns because of their potential to get facts wrong or “hallucinate” responses.

    News outlet CNET had to issue “substantial” corrections earlier this year after experimenting with using an AI tool to write stories. And what was supposed to be a simple AI-written story on “Star Wars” published by Gizmodo earlier this month similarly required a correction. But both outlets have said they will still move forward with using the technology.

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  • Uber’s post-pandemic growth is slowing | CNN Business

    Uber’s post-pandemic growth is slowing | CNN Business

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    New York
    CNN
     — 

    Uber has reported that its revenue ticked up 14% last quarter, marking a slower pace of growth than recent quarters when sales surged as riders returned to pre-pandemic habits.

    The company on Tuesday reported revenue of $9.2 billion for the quarter ending in June, a 14% increase from the same period last year, just missing Wall Street’s estimates. The number of trips customers took were up 22% in the quarter.

    The company reported its first-ever unadjusted operating profit of $326 million. It also posted record quarterly free cash flow of $1.1 billion.

    “For most of our history, ‘profitable’ wasn’t the first thing that came up when you ask someone about Uber,” CEO Dara Khosrowshahi said on a call with analysts Tuesday morning. “But we knew they were wrong about Uber, as did many of our investors who backed us over the years.”

    Uber also said gross bookings (the amount paid by customers) surged 16% year over year to $33.6 billion. Trips during the quarter grew 22% to 2.3 billion, or approximately 25 million trips per day on average.

    On the call, the chief executive touted “a new all-time high of $15.1 billion in total earnings for drivers and couriers on the platform” that was seen last quarter.

    Uber also announced Tuesday that Chief Financial Officer Nelson Chai will leave the company next January, and a search for his replacement is underway.

    “Nelson has been a huge part of Uber’s transformation over the past five years,” Khosrowshahi said on the analysts’ call. “I know that I speak for the entire company that we’re grateful for everything he’s done to establish such a strong foundation for a path forward.”

    Shares for Uber climbed by some 4% in pre-market trading Tuesday morning as the company offered rosy guidance. Uber stock has roughly doubled since the start of the year.

    In a note Tuesday morning, William Blair analyst Ralph Schackart touted how the strong results this past quarter were “driven by continued execution, robust engagement, and record audience levels using the platform.”

    “Uber continues to drive incremental profitability, demonstrating its ability to efficiently run the broader business and drive positive results,” Schackart added.

    Uber has so far navigated its pandemic recovery far better than its chief rival, Lyft. Lyft is set to report quarterly earnings next week on Tuesday.

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  • Micron Technology: China probes US chip maker for cybersecurity risks as tech tension escalates | CNN Business

    Micron Technology: China probes US chip maker for cybersecurity risks as tech tension escalates | CNN Business

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    Hong Kong
    CNN
     — 

    China has launched a cybersecurity probe into Micron Technology, one of America’s largest memory chip makers, in apparent retaliation after US allies in Asia and Europe announced new restrictions on the sale of key technology to Beijing.

    The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement by the watchdog late on Friday.

    The move is aimed at “ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security,” it noted.

    It came on the same day that Japan, a US ally, said it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands.

    Washington and its allies have announced curbs on China’s semiconductor industry, which strike at the heart of Beijing’s bid to become a tech superpower.

    Last month, the Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, citing the need to protect national security. In October, the United States banned Chinese companies from buying advanced chips and chipmaking equipment without a license.

    Micron told CNN it was aware of the review.

    “We are in communication with the CAC and are cooperating fully,” it said, adding that it stands by the security of its products.

    Shares in Micron sank 4.4% on Wall Street Friday following the news, the biggest drop in more than three months. Micron derives more than 10% of its revenue from China.

    In an earlier filing, the Idaho-based company had warned of such risks.

    “The Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies,” it said last week.

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

    In efforts to boost growth and job creation, Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges. The newly minted premier Li Qiang and several top economic officials have been rolling out the welcome wagon for global CEOs and promising they would “provide a good environment and services.”

    But Beijing has also exerted growing pressure on foreign companies to bring them into line with its agenda.

    Last month, authorities closed the Beijing office of Mintz Group, a US corporate intelligence firm, and detained five local staff.

    Days earlier, they suspended Deloitte’s operations in Beijing for three months and imposed a fine of $31 million over alleged lapses in its work auditing a state-owned distressed debt manager.

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  • Italy blocks ChatGPT over privacy concerns | CNN Business

    Italy blocks ChatGPT over privacy concerns | CNN Business

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    London
    CNN
     — 

    Regulators in Italy issued a temporary ban on ChatGPT Friday, effective immediately, due to privacy concerns and said they had opened an investigation into how OpenAI, the US company behind the popular chatbot, uses data.

    Italy’s data protection agency said users lacked information about the collection of their data and that a breach at ChatGPT had been reported on March 20.

    “There appears to be no legal basis underpinning the massive collection and processing of personal data in order to ‘train’ the algorithms on which the platform relies,” the agency said.

    The Italian regulator also expressed concerns over the lack of age verification for ChatGPT users. It argued that this “exposes children to receiving responses that are absolutely inappropriate to their age and awareness.” The platform is supposed to be for users older than 13, it noted.

    The data protection agency said OpenAI would be barred from processing the data of Italian users until it “respects the privacy regulation.”

    OpenAI has been given 20 days to communicate the measures it will take to comply with Italy’s data rules. Otherwise, it could face a penalty of up to €20 million ($21.8 million), or up to 4% of its annual global turnover.

    Since its public release four months ago, ChatGPT has become a global phenomenon, amassing millions of users impressed with its ability to craft convincing written content, including academic essays, business plans and short stories.

    But concerns have also emerged about its rapid spread and what large-scale uptake of such tools could mean for society, putting pressure on regulators around the world to act.

    The European Union is finalizing rules on the use of artificial intelligence in the bloc. In the meantime, EU companies must comply with the General Data Protection Regulation, or GDPR, as well as the Digital Services Act and Digital Markets Act, which apply to tech platforms.

    Meanwhile, so-called “generative AI” tools available to the public are proliferating.

    Earlier this month, OpenAI released GPT-4, a new version of the technology underpinning ChatGPT that is even more powerful. The company said the updated technology passed a simulated law school bar exam with a score around the top 10% of test takers; by contrast, the prior version, GPT-3.5, scored around the bottom 10%.

    This week, some of the biggest names in tech, including Elon Musk, called for AI labs to stop the training of the most powerful AI systems for at least six months, citing “profound risks to society and humanity.”

    — Julia Horowitz contributed reporting.

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  • Elon Musk’s weekend antics could only further crumble Twitter’s brand value | CNN Business

    Elon Musk’s weekend antics could only further crumble Twitter’s brand value | CNN Business

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    New York
    CNN
     — 

    Under Elon Musk, Twitter has antagonized multiple major news organizations by labeling them state-funded media, appears to have eased restrictions on Russian government accounts and made crude jokes on the front of its headquarters and on Musk’s own Twitter display name.

    And that’s just this weekend.

    Musk’s antics, which only seem to have escalated this month, threaten to further erode Twitter’s brand value. For months, the company has struggled to retain advertisers and supplement its declining ad business — which previously comprised 90% of its annual revenue — by convincing users to pay up for its Twitter Blue subscription service.

    Musk, who is on the hook for large payments to lenders after buying the company for $44 billion, including with significant debt, must either coax hesitant advertisers back to the platform or boost its subscription business -— or both. But his recent erratic moves may only complicate those turnaround efforts.

    Late last week, Twitter faced backlash for labeling NPR as a “state-affiliated media” organization akin to foreign propaganda outlets such as Russia’s RT and Sputnik, in an apparent violation of its own policies. NPR CEO John Lansing called Twitter’s move “unacceptable,” and said the organization is “supported by millions of listeners.”

    Following the pushback, Twitter changed NPR’s label to “government funded media,” and applied the same designation to British broadcaster BBC over the weekend. Twitter has not given a definition for what it considers “government funded media,” but the BBC pushed back on the label, saying it is independent and “funded by the British public through the license fee.”

    The moves risk alienating some of the best-known media organizations in the world and undermining what has long been a key selling point for the platform: its role as a central hub for news. NPR, in particular, has not tweeted from its main account in nearly a week.

    While Twitter labeled some news accounts as state-funded, it also appears to have removed some restrictions on Russian government accounts that had been put in place following the outset of Russia’s war in Ukraine, again prompting outrage among some users.

    Musk commented on the decision in a tweet Sunday saying: “I’m told Putin called me a war criminal for helping Ukraine, so he’s not exactly my best friend. All news is to some degree propaganda. Let people decide for themselves.”

    Twitter, which laid off much of its media relations team last year, did not respond to a request for comment.

    The controversial moves come as Twitter continues to face significant business challenges. Analysis firm Similarweb last week reported that traffic to Twitter’s ad portal was down nearly 19% year-over-year in March. Many major advertisers have halted spending on Twitter since Musk’s takeover over concerns about increased hate speech on the platform and massive cuts to the company’s workforce.

    Musk has said Twitter is working to improve the platform’s ad targeting to increase value for advertisers. “But all the while there have been distractions,” said Scott Kessler, technology sector lead at research firm Third Bridge, adding that there are “significant questions about the direction that the company is going.” At the same time, online ad spending broadly has contracted over concerns about the economy.

    Against that backdrop, Musk’s Twitter has made several head-scratching announcements this month, some of which might only add to its challenges.

    Musk previously frustrated some of Twitter’s celebrity users, who have long been a key selling point for the platform, with a promise to remove blue checkmarks from accounts who had been verified under Twitter’s previous system. But it didn’t exactly go to plan — instead of removing checks from all previously verified users, Twitter appeared to target a single account belonging to the New York Times.

    Days later, Twitter’s home button was temporarily replaced with doge, the meme representing the cryptocurrency dogecoin, which Musk has promoted. The company also briefly restricted Twitter users from sharing links to a rival platform, upsetting users, including one who had previously reported the so-called Twitter files using documents provided by Musk.

    As if to underscore his unique and questionable impact on the brand, the “Chief Twit” has also apparently been keeping busy with changes to Twitter’s San Francisco headquarters. Last week, photos began spreading of a piece of plastic covering the “w” in the sign on the front of the company’s office.

    At nearly midnight on Sunday, Musk tweeted that the company’s landlord “says we’re legally required to keep sign as Twitter & cannot remove ‘w,’ so we painted it background color,” alongside a photo of the “w” painted white against a white background, leaving a more asinine word in its place. “Problem solved!” Musk tweeted.

    If only the same could be said for the platform’s business troubles.

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  • ‘He’s lost that old twinkle:’ When a young Joe Biden criticized his opponent’s age | CNN Politics

    ‘He’s lost that old twinkle:’ When a young Joe Biden criticized his opponent’s age | CNN Politics

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    CNN
     — 

    President Joe Biden, who at 80 has had to confront questions about his age and mental acuity as he is poised to launch a reelection campaign for president, once ran a campaign that sharply attacked his opponent’s age.

    In 1972, Biden, then 29 years old and a local Delaware councilman, was running against incumbent Republican Sen. Cale Boggs who was 63 years old, a former two term governor and the state’s senior senator.

    “Cale doesn’t want to run, he’s lost that old twinkle in his eye he used to have,” Biden said of Boggs, who had originally wanted to retire but was persuaded to run for reelection.

    Biden used his opponent’s age against him in a way that was so explicit, one local reporter dubbed his approach, “Dear old dad.”

    Biden was running to become one of the youngest people ever elected to the United States Senate. Now, the president is already the oldest person ever to serve in the office of the presidency, and, if reelected, would leave office at the age of 86. That would best the next oldest president by more than 9 years if he served a full second term.

    The president’s age has been “omnipresent” in nearly every conversation, CNN reported in February, though that notion was disputed by a White House spokesperson.

    In response to a request for comment, White House spokesman Andrew Bates told CNN that Biden has made “historic progress” that has been “enthusiastically welcomed by younger Americans – including his unprecedented investments in fighting climate change, his first-of-its kind police reform executive order, his actions to support community policing and decriminalize marijuana, and getting more Americans health coverage than ever before.”

    In 1972, advertisements for Biden in local newspapers and on the radio hammered home a line, “he understands what’s happening today.” The ads targeted Boggs’ age by bringing up past historical topics from Bogg’s “generation,” like Joseph Stalin ruling Russia, jazz musicians using heroin, the development of the polio vaccine, and taxes from the 1940s.

    “Cale Boggs’ generation dreamed of conquering polio, Joe Biden’s generation dreams of conquering heroin,” read one newspaper ad. “To Cale Boggs an unfair tax was the 1948 poll tax. To Joe Biden an unfair tax is the 1972 income tax,” read another.

    One radio advertisement targeted Boggs as too focused on past threats from Russia, while ignoring domestic issues like crime.

    “One of the biggest differences between Cale Boggs and Joe Biden is the things they worry about,” said the radio ad. “In Cale Boggs’ day when Stalin ruled, Americans had visions of the Russian soldiers in our streets. In Joe Biden’s day, Americans have visions of American criminals in our streets. Joe Biden, he understands what’s happening today.”

    The approach drew pushback from Sen. William Roth, a Delaware Republican who Biden would work closely with for the next 30 years, according to the News Journal, and commentary from the media at the time.

    Biden eventually won that race with the Associated Press declaring, “Biden stressed age to defeat Boggs.”

    As Pulitzer Prize-winning journalist Norm Lockman wrote, “The new campaign strategy, ordered by Biden himself, eases off the strident tub-thumping and finger pointing and uses an approach that says, in effect, “Dear old dad may have been right for his time – and I love him – but things are different now.’”

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  • TikTok is testing a new option to create AI-generated avatars for profile pictures | CNN Business

    TikTok is testing a new option to create AI-generated avatars for profile pictures | CNN Business

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    New York
    CNN
     — 

    TikTok is testing a new option to let users create AI-generated avatars for their profile pictures, the company confirmed to CNN on Wednesday, in a move with the potential to put recent advances in artificial intelligence technology front and center for millions of users.

    The new feature appears to create a stylized, illustrated image of the user based on an uploaded picture, according to a post from social media consultant Matt Navarra, who was first to spot the option.

    The feature is still in the early stages of testing and not widely available to TikTok users, according to the company, and there is currently no timeline for when the feature might roll out.

    “We’re always thinking about new ways to add value to the community and enrich the TikTok experience, as we continue to build a safe place that entertains, inspires creativity, and drives culture,” a TikTok spokesperson said in a statement provided to CNN. “In a few select regions, we’re experimenting with a new way to create and share profile pictures with the TikTok community.”

    AI-generated images have taken over the internet in recent months, but some tools have also raised concerns among privacy experts, digital artists, and users who have noticed the potential to sexualize images, make skin paler and make bodies thinner.

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  • AI pioneer quits Google to warn about the technology’s ‘dangers’ | CNN Business

    AI pioneer quits Google to warn about the technology’s ‘dangers’ | CNN Business

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    New York
    CNN
     — 

    Geoffrey Hinton, who has been called the ‘Godfather of AI,’ confirmed Monday that he left his role at Google last week to speak out about the “dangers” of the technology he helped to develop.

    Hinton’s pioneering work on neural networks shaped artificial intelligence systems powering many of today’s products. He worked part-time at Google for a decade on the tech giant’s AI development efforts, but he has since come to have concerns about the technology and his role in advancing it.

    “I console myself with the normal excuse: If I hadn’t done it, somebody else would have,” Hinton told the New York Times, which was first to report his decision.

    In a tweet Monday, Hinton said he left Google so he could speak freely about the risks of AI, rather than because of a desire to criticize Google specifically.

    “I left so that I could talk about the dangers of AI without considering how this impacts Google,” Hinton said in a tweet. “Google has acted very responsibly.”

    Jeff Dean, chief scientist at Google, said Hinton “has made foundational breakthroughs in AI” and expressed appreciation for Hinton’s “decade of contributions at Google.”

    “We remain committed to a responsible approach to AI,” Dean said in a statement provided to CNN. “We’re continually learning to understand emerging risks while also innovating boldly.”

    Hinton’s decision to step back from the company and speak out on the technology comes as a growing number of lawmakers, advocacy groups and tech insiders have raised alarms about the potential for a new crop of AI-powered chatbots to spread misinformation and displace jobs.

    The wave of attention around ChatGPT late last year helped renew an arms race among tech companies to develop and deploy similar AI tools in their products. OpenAI, Microsoft and Google are at the forefront of this trend, but IBM, Amazon, Baidu and Tencent are working on similar technologies.

    In March, some prominent figures in tech signed a letter calling for artificial intelligence labs to stop the training of the most powerful AI systems for at least six months, citing “profound risks to society and humanity.” The letter, published by the Future of Life Institute, a nonprofit backed by Elon Musk,came just two weeks after OpenAI announced GPT-4, an even more powerful version of the technology that powers ChatGPT. In early tests and a company demo, GPT-4 was used to draft lawsuits, pass standardized exams and build a working website from a hand-drawn sketch.

    In the interview with the Times, Hinton echoed concerns about AI’s potential to eliminate jobs and create a world where many will “not be able to know what is true anymore.” He also pointed to the stunning pace of advancement, far beyond what he and others had anticipated.

    “The idea that this stuff could actually get smarter than people — a few people believed that,” Hinton said in the interview. “But most people thought it was way off. And I thought it was way off. I thought it was 30 to 50 years or even longer away. Obviously, I no longer think that.”

    Even before stepping aside from Google, Hinton had spoken publicly about AI’s potential to do harm as well as good.

    “I believe that the rapid progress of AI is going to transform society in ways we do not fully understand and not all of the effects are going to be good,” Hinton said in a 2021 commencement address at the Indian Institute of Technology Bombay in Mumbai. He noted how AI will boost healthcare while also creating opportunities for lethal autonomous weapons. “I find this prospect much more immediate and much more terrifying than the prospect of robots taking over, which I think is a very long way off.”

    Hinton isn’t the first Google employee to raise a red flag on AI. In July, the company fired an engineer who claimed an unreleased AI system had become sentient, saying he violated employment and data security policies. Many in the AI community pushed back strongly on the engineer’s assertion.

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  • Three GOP appointees, including 2 from Trump, will hear the next phase of major abortion pill case | CNN Politics

    Three GOP appointees, including 2 from Trump, will hear the next phase of major abortion pill case | CNN Politics

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    CNN
     — 

    The New Orleans-based appeals court panel that will oversee the next stage in the blockbuster legal challenge to the availability of medication abortion drugs is made up of three Republican appointees, including one Trump nominee who has called abortion a “moral tragedy.”

    Circuit Judges James Ho and Cory Wilson, both Trump nominees, will hear the oral arguments on May 17, alongside Judge Jennifer Walker Elrod, an appointee of George W. Bush.

    The lawsuit was brought by anti-abortion doctors and medical organizations who allege the US Food and Drug Administration broke the law when it approved the medication abortion drug mifepristone more than two decades ago.

    Last month, US District Judge Matthew Kacsmaryk agreed with their arguments and ruled that the approval of the drug should be suspended. 

    However, his ruling was put on hold by the Supreme Court on April 21 and it will remain on hold until the case goes back to the high court, regardless of how the 5th US Circuit Court of Appeals rules on the merits.

    Ho, a former Texas solicitor general, is considered one of the most conservative and strident members of the 5th Circuit, having described abortion as a “moral tragedy” in a 2018 concurring opinion.

    In a 2019 concurring opinion, Ho also said that a trial judge’s ruling – which struck down a 15-week abortion ban and which was affirmed by the 5th Circuit under the then-standing Roe precedent – displayed “an alarming disrespect for the millions of Americans who believe that babies deserve legal protection during pregnancy as well as after birth, and that abortion is the immoral, tragic, and violent taking of innocent human life.”

    The 5th Circuit is considered one of the most conservative in the country has consistently ruled against the Biden Justice Department.

    Wilson earlier this year wrote a majority circuit opinion that said that a federal law that bars gun ownership by people under domestic violence was unconstitutional.

    Elrod penned an opinion last month that struck down the federal ban on bump stocks, which are attachments that essentially allow shooters to fire semiautomatic rifles continuously with one pull of the trigger.

    The medication abortion case is another hugely consequential case to go through the circuit. Mifepristone – the drug being targeted in the lawsuit – is the first pill in the two-pill regimen for terminating a pregnancy. Medication abortion makes up more than half of all abortions obtained in the United States.

    In filings last week, the Justice Department told the 5th Circuit that Kacsmaryk’s conclusions that the drug was unsafe rested “on a series of fundamental errors.”

    “While FDA justified its scientific conclusions in multiple detailed reviews, including a medical review spanning more than 100 pages and assessing dozens of studies and other scientific information, the district court swept the agency’s judgments aside by substituting its own lay understanding of purportedly contrary studies, offering demonstrably erroneous characterizations of the record,” the DOJ’s filing said. 

    The department’s opponents in the case will file a response later on Monday.

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  • Montana governor bans TikTok | CNN Business

    Montana governor bans TikTok | CNN Business

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    New York
    CNN
     — 

    Montana Gov. Greg Gianforte signed a bill Wednesday banning TikTok in the state.

    Gianforte tweeted that he has banned TikTok in Montana “to protect Montanans’ personal and private data from the Chinese Communist Party,” officially making it the first state to ban the social media application.

    The controversial law marks the furthest step yet by a state government to restrict TikTok over perceived security concerns and comes as some federal lawmakers have called for a national ban of TikTok. But it is expected to be challenged in court.

    The bill, which will take effect in January, specifically names TikTok as its target, prohibiting the app from operating within state lines. The law also outlines potential fines of $10,000 per day for violators, including app stores found to host the social media application.

    Last month, lawmakers in Montana’s House of Representatives voted 54-43 to pass the bill, known as SB419, sending it to Gianforte’s desk.

    In a statement to CNN, TikTok said it would push to defend the rights of users in Montana.

    “Governor Gianforte has signed a bill that infringes on the First Amendment rights of the people of Montana by unlawfully banning TikTok, a platform that empowers hundreds of thousands of people across the state. We want to reassure Montanans that they can continue using TikTok to express themselves, earn a living, and find community as we continue working to defend the rights of our users inside and outside of Montana.”

    The law comes as TikTok faces growing criticism for its ties to China. TikTok is owned by China-based ByteDance. Many US officials have expressed fears that the Chinese government could potentially access US data via TikTok for spying purposes, though there is so far no evidence that the Chinese government has ever accessed personal information of US-based TikTok users.

    NetChoice, a technology trade group that includes TikTok as a member, called the Montana bill unconstitutional.

    “The government may not block our ability to access constitutionally protected speech – whether it is in a newspaper, on a website or via an app. In implementing this law, Montana ignores the U.S. Constitution, due process and free speech by denying access to a website and apps their citizens want to use,” said Carl Szabo, NetChoice’s general counsel.

    The ACLU also pushed back on the bill, releasing a statement saying that “with this ban, Governor Gianforte and the Montana legislature have trampled on the free speech of hundreds of thousands of Montanans who use the app to express themselves, gather information, and run their small business in the name of anti-Chinese sentiment.”

    On Wednesday, Gianforte signed an additional bill that prohibits the use of any social media application “tied to foreign adversaries” on government devices, including ByteDance-owned CapCut and Lemon8, and Telegram Messenger, which was founded in Russia.

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

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

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    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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  • Amazon looks to adapt Alexa to the rise of ChatGPT | CNN Business

    Amazon looks to adapt Alexa to the rise of ChatGPT | CNN Business

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    CNN
     — 

    For years, Alexa has been synonymous with virtual assistants that can interact with users and do tasks on their behalf.

    Now Amazon is trying 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.

    Amazon’s goal is to use AI “to create this great personal assistant,” said Dave Limp, senior VP of devices and services, in a recent interview with CNN. “We’ve been using all forms of AI for a long time, but now that we see this emergence of generative AI, we can accelerate that vision even faster.”

    Generative AI refers to a type of AI that can create new content, such as text and images, in response to user prompts. Limp did not elaborate on how generative AI could be used in Alexa products, but there are clear possibilities.

    In theory, this technology could one day help Alexa have more natural conversations with users, answer more complex questions, and be more creative by telling stories or making up song lyrics in seconds. It could also enable more personalized interactions, allowing the assistant to learn about the device owner’s interests, preferences and better tailor its responses to each person.

    “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.”

    Alexa launched nearly a decade ago and, along with Siri, Cortana and other voice assistants, seemed poised to change the way people interacted with technology. But the viral success of ChatGPT has arguably accomplished that 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 is now slashing staff and shelving products in an urgent effort to cut costs amid broader economic uncertainty. The Alexa division has not escaped unscathed.

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

    Amazon also shut down some of the products it spun up earlier in the pandemic, such as its wearable fitness brand Halo, which allowed users to ask Alexa questions about their health and wellness. Limp said the company also shelved some “more risky” projects. “I wouldn’t doubt we’ll dust them off at some point and bring them back,” he said. “We’re still taking a lot of risks in this organization.”

    But Limp said Alexa remains a “North Star” for his division. “To give you a sense, there’s still thousands and thousands of people working on Alexa,” he said.

    Amazon is indeed still investing in Alexa and its related Echo smart speaker lineup. Last week, the company unveiled several new products, including the $39.99 Echo Pop and the $89.99 Echo Show 5, its smart speaker with a screen. While the products feature incremental updates, Limp said Amazon’s current lineup contains hints of what’s to come with its AI efforts, beyond generative AI.

    For example, if Alexa is enabled on an Echo Show, where it can rotate and follow users around the room, “you’ll see glimmers of where it’s going over the next months and years,” Limp said.

    But generative AI remains a key focus for the company. Amazon CEO Andy Jassy said in a letter to shareholders in April that the company is focused on “investing heavily” in the technology “across all of our consumer, seller, brand, and creator experiences.”

    The company is reportedly working on adding ChatGPT-like search capabilities for its e-commerce store. Amazon is also rumored to be planning to use generative AI to bring conversational language to a home robot.

    While Limp didn’t comment on the report, he said the end goal has long been for Alexa to communicate with users in a fluid, natural way, whether it’s through an Echo device or other products such as its robotic dog, Astro.

    The concept remains a “hard technical challenge,” he said, but one that is “more tractable” with generative AI. “There’s still some hard corner cases and things to work out,” he said.

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  • AI chip boom sends Nvidia’s stock surging after whopper of a quarter | CNN Business

    AI chip boom sends Nvidia’s stock surging after whopper of a quarter | CNN Business

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    New York
    CNN
     — 

    The AI boom is here, and Nvidia is reaping all the benefits.

    Shares of Nvidia

    (NVDA)
    exploded 28% higher Thursday after reporting earnings and sales that surged well above Wall Street’s already lofty expectations. That was enough to make investors temporarily forget about America’s dangerous debt ceiling standoff, sending the broader stock market higher — even after credit rating agency Fitch warned late Wednesday that America could soon lose its sterling AAA debt rating.

    Nvidia makes chips that power generative AI, a type of artificial intelligence that can create new content, such as text and images, in response to user prompts. That’s the kind of AI underlying ChatGPT, Google’s Bard, Dall-E and many of the other new AI technologies.

    “The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, Nvidia’s CEO, in a statement. “A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”

    Huang said Nvidia is increasing supply of its entire suite of data center products to meet “surging demand” for them.

    Last quarter, Nvidia’s profit surged 26% to $2 billion, and sales rose 19% to $7.2 billion, each easily surpassing Wall Street analysts’ forecasts. Nvidia’s outlook for the current quarter was also significantly — about 50% — higher than analysts’ predictions.

    Nvidia’s stock is up nearly 110% this year.

    “There is not one better indicator around underlying AI demand going on … than the foundational Nvidia story,” said Dan Ives, analyst at Wedbush. “We view Nvidia at the core hearts and lungs of the AI revolution.”

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  • US received intel from European ally that Ukrainian military was planning attack on Nord Stream pipelines, officials say | CNN Politics

    US received intel from European ally that Ukrainian military was planning attack on Nord Stream pipelines, officials say | CNN Politics

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    CNN
     — 

    The US received intelligence from a European ally last year that the Ukrainian military was planning an attack on the Nord Stream natural gas pipelines three months before they were hit, three US officials told CNN.

    The attack on the pipelines last September has been condemned by US officials and Western allies alike as a sabotage on critical infrastructure. It is currently being investigated by other European nations.

    The intelligence assessment was first disclosed by The Washington Post, which obtained the document from a trove of classified documents allegedly leaked on the social media platform Discord by Air National Guardsman Jack Teixeira.

    CNN has not seen the document but the three officials confirmed the US was told about the Ukrainian plans.

    According to the Washington Post, the intelligence cited a source in Ukraine which said Western allies “had a basis to suspect Kyiv in the sabotage” for almost a year. The intelligence said that those who may have been responsible were reporting directly to Ukraine’s commander in chief, Valerii Zaluzhnyi, “who was put in charge so that Ukraine’s president, Volodymyr Zelensky, wouldn’t know about the operation,” the Post reported.

    But, the intelligence also said that Ukraine’s military operation was “put on hold.”

    CNN has reached out to the Ukrainian government for comment.

    White House National Security Council coordinator for strategic communications John Kirby declined to address the reporting directly on Tuesday.

    “I think you know there are three countries conducting an investigation of the Nord Stream sabotage — and we called it sabotage at the moment — Germany, Sweden, and Denmark. Those investigations are ongoing and again the last thing that we’re going to want to do from this podium is get ahead of those investigations,” Kirby said.

    The news comes less than a year after leaks caused by underwater explosions were discovered in the Nord Stream 1 and 2 pipelines, which funnel gas from Russia into the European Union and run under the Baltic Sea. The pipelines were controversial before the war in Ukraine began, stoking concerns about European dependence on Russian gas.

    Neither of the pipelines were actively transporting gas to Europe at the time of the leaks, though they still held gas under pressure.

    Sweden was the first to sound the alarm on the leak; Swedish Prime Minister Magdalena Andersson later said that it was “likely a deliberate action” but “not an attack against Sweden.”

    Other European leaders such as the Danish prime minister and energy minister, and Norway’s minister of petroleum and energy, also concluded the leaks were a result of sabotage.

    Ukraine denied any responsibility for the leaks at the time, with the top adviser to Zelensky referring to the idea as an “amusing conspiracy” theory.

    “Although I enjoy collecting amusing conspiracy theories about [the Ukrainian] government, I have to say: [Ukraine] has nothing to do with the Baltic Sea mishap and has no information about ‘pro-[Ukraine] sabotage groups,’” Mykhailo Podolyak said on Twitter.

    The Washington Post reported Tuesday that Ukrainian officials sought to keep Zelensky out of the loop on the Nord Stream planning in order to give him “a plausible way to deny involvement in an audacious attack on civilian infrastructure” that could impact relationships with countries supporting Ukraine’s fight against Russia.

    And while the intelligence said that Ukraine’s plan was paused, the Post’s report said that the details emerging from Germany’s investigation of the attack “line up with the earlier plot.”

    The intelligence the US received from a European ally last year said six Ukrainian special operations forces service members intended to use fake identities to rent a boat and destroy or damage the pipelines on the Baltic Sea floor by using a “submersible vehicle,” the Post said.

    Details that German officials are piecing together say that six individuals who were “skilled divers” used fake passports and embarked from Germany on a sailing yacht, then planted explosives on the pipelines, according to the Post.

    The details between the two plans differ in some regards, the Post said, and the CIA “initially questioned the credibility of the information.” Nevertheless, sources previously told CNN that the US had warned several European allies over the summer that the Nord Stream 1 and 2 pipelines could be attacked.

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  • Trump shakes up legal team in wake of classified documents indictment | CNN Politics

    Trump shakes up legal team in wake of classified documents indictment | CNN Politics

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    CNN
     — 

    Former President Donald Trump’s legal team is undergoing a significant shakeup in the wake of his indictment in the special counsel’s classified documents probe.

    In a sudden move, Trump announced Friday morning that he was removing two of his top attorneys, Jim Trusty and John Rowley, from the case and said Todd Blanche, a defense lawyer he hired in April after being indicted in Manhattan, would take the lead. Soon after, Trusty and Rowley issued a joint statement in which they said they were resigning from the legal team entirely.

    Trump is considering adding Miami-based attorney Benedict Kuehne to his legal team, a source familiar with the matter told CNN. He has not been formally added to the team yet but could join soon given Trump’s expected court appearance on Tuesday. CNN has reached out to Kuehne for comment.

    Lindsay Halligan, who is barred in the state where Trump was indicted, also remains on the team.

    In their statement, Trusty and Rowley said they were confident Trump will be “vindicated in his battle against the Biden Administration’s partisan weaponization of the American justice system” and said now was a “logical” time for them to step aside with the case having been filed in Miami.

    They added that they do not plan to make media appearances or to reveal conversations they’ve had with Trump. Trusty appeared on CNN just hours after Trump announced that he had been indicted to defend his client but also left open the door to potential changes in the legal team.

    Asked which members of the team would accompany Trump to court Tuesday, Trusty said, “We’ll see. It’ll make some excitement to see who shows up to the table on Tuesday, I guess.”

    Shortly before Friday’s statement was issued by Trusty and Rowley, Trump disclosed on Truth Social that neither would be representing him. He thanked them for their work, saying they “were up against a very dishonest, corrupt, evil, and ‘sick’ group of people,” but did not explain why they were departing.

    Trump’s legal team has seen significant turnover as the investigation into the mishandling of classified documents has unfolded. Last month, Timothy Parlatore, an attorney who played a key role in the investigation and once testified before the grand jury, left Trump’s legal team due to infighting, he told CNN’s Paula Reid.

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  • Senate Judiciary advances journalism bargaining bill targeting Big Tech | CNN Business

    Senate Judiciary advances journalism bargaining bill targeting Big Tech | CNN Business

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    Washington
    CNN
     — 

    The Senate Judiciary Committee advanced legislation on Thursday that would give news organizations the power to jointly bargain against Meta, Google and other online platforms for a greater share of online advertising revenue.

    The legislation would create an antitrust exemption allowing radio and TV broadcasters, as well as small news outlets with fewer than 1,500 employees, to “band together” and arrest the decline of local journalism in cities and states across the country, said its lead co-sponsors, Minnesota Democratic Sen. Amy Klobuchar and Louisiana Republican Sen. John Kennedy.

    The concept, a version of which became law in Australia in 2021 and since been proposed in numerous countries, has been vigorously opposed by tech giants who in some cases have threatened to pull news content from their platforms over the legislation.

    Meta and Google didn’t immediately respond to a request for comment.

    The measure cleared the committee by a vote of 14-7. But it faces an uncertain future on the Senate floor.

    One member of the committee, California Democratic Sen. Alex Padilla, voted against the bill Thursday and vowed to block any future floor vote on the legislation until lawmakers make several changes.

    Padilla said the legislation doesn’t do enough to ensure that actual journalists in local newsrooms will benefit from the bargaining, as opposed to hedge funds and publication owners. He also raised concerns that the bill as written could allow online platforms such as Google to charge individual internet users each time they attempt to share or click on a link to a news article, a practice Padilla warned would be harmful to the internet.

    “This bill, as written, does nothing to guarantee the protection or pay of the journalists and media workers that we’re claiming to try to protect,” Padilla said. “For us to ignore them while claiming to be fighting for them is absurd.”

    Several other senators echoed Padilla’s remarks on Thursday, including Democratic Sens. Jon Ossoff, Peter Welch and Cory Booker.

    Kennedy and Klobuchar argued that the bill — which had previously passed out of the committee during the last Congress, in 2022 — is urgently necessary in light of the closure of thousands of local newspapers nationwide since the rise of online platforms.

    “We have small towns in all of our states with news organizations that cover everything from what’s happening in the city council to reports of the local high school football and volleyball games to informing citizens that a flood is coming,” Klobuchar said. “That kind of reporting … is being undermined right now because, in a very tough market, these news reporters and news organizations are not getting the share of the revenue that they should get.”

    Kennedy urged colleagues to set aside their other views on tech platforms and news media.

    “This bill is not about whether or not you like social media,” Kennedy said. “This bill is not about whether or not you like what is happening in American news media today. This bill is about creative content. That’s all it’s about. And whether we respect creative content and value it, or whether we do not.”

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