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  • LinkedIn to cut 716 jobs and shut its China app amid ‘challenging’ economic climate | CNN Business

    LinkedIn to cut 716 jobs and shut its China app amid ‘challenging’ economic climate | CNN Business

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    Hong Kong
    CNN
     — 

    LinkedIn, the world’s largest social media platform for professionals, is cutting 716 positions and shutting down its jobs app in mainland China, the California-based company announced.

    The decision was made amid shifts in customer behavior and slower revenue growth, CEO Ryan Roslansky said Monday in a letter to employees.

    “As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organization and our China strategy that will result in a reduction of roles for 716 employees,” he said.

    LinkedIn, owned by Microsoft

    (MSFT)    , has joined a slew of US tech companies that have made significant job cuts this year. Meta announced in March an additional 10,000 layoffs on top of mass layoffs announced in 2022. Amazon also said during the same month it would eliminate 9,000 positions, on the heels of the 18,000 roles the company announced it was cutting in January.

    “As we plan for [the fiscal year of 2024], we’re expecting the macro environment to remain challenging,” Roslansky said. “We will continue to manage our expenses as we invest in strategic growth areas.”

    As part of the move, LinkedIn will phase out InCareer, its app for mainland China, by August 9.

    Roslansky cited “fierce competition” and “a challenging macroeconomic climate” as the reason for the shutdown.

    LinkedIn will retain some presence in China, including providing services for companies operating there to hire and train employees outside the country, according to a company spokesperson.

    LinkedIn is the last major Western social media app still operating in mainland China. Twitter, Facebook and Youtube have been banned in the country for more than a decade. Google left in early 2010.

    LinkedIn first entered China in 2014 by launching a localized version of its main app. But its moves to censor posts in the country, in accordance with Chinese laws, came under criticism.

    In March 2021, LinkedIn had to suspend signups in China to ensure it was “in compliance with local law.” A few months later, it replaced that app with InCareer, which was focused solely on job postings, with no social networking features such as sharing or commenting.

    The US social media site has faced tough competition in China. By 2021, it had more than 50 million members in the country, making it the company’s third biggest market after the United States and India. But it lagged behind local competitors such as Maimai.

    Maimai was launched in 2013 and dubbed the Chinese version of LinkedIn. In a few years it surpassed LinkedIn to become the most popular professional networking platform in the country, with 110 million verified members. A major feature that powered its success was that it allowed users to post anonymously in a chat forum.

    The operating environment in China has also become more challenging. Since Xi Jinping took power in 2012, he has tightened control over what can be said online and launched a series of crackdowns on the internet.

    “While we’ve found success in helping Chinese members find jobs and economic opportunity, we have not found that same level of success in the more social aspects of sharing and staying informed,” LinkedIn wrote in an October 2021 blog post. “We’re also facing a significantly more challenging operating environment and greater compliance requirements in China.”

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  • The man behind ChatGPT is about to have his moment on Capitol Hill | CNN Business

    The man behind ChatGPT is about to have his moment on Capitol Hill | CNN Business

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    New York
    CNN
     — 

    For a few months in 2017, there were rumors that Sam Altman was planning to run for governor of California. Instead, he kept his day job as one of Silicon Valley’s most influential investors and entrepreneurs.

    But now, Altman is about to make a different kind of political debut.

    Altman, the CEO and co-founder of OpenAI, the artificial intelligence company behind viral chatbot ChatGPT and image generator Dall-E, is set to testify before Congress on Tuesday. His appearance is part of a Senate subcommittee hearing on the risks artificial intelligence poses for society, and what safeguards are needed for the technology.

    House lawmakers on both sides of the aisle are also expected to hold a dinner with Altman on Monday night, according to multiple reports. Dozens of lawmakers are said to be planning to attend, with one Republican lawmaker describing it as part of the process for Congress to assess “the extraordinary potential and unprecedented threat that artificial intelligence presents to humanity.”

    Earlier this month, Altman was one of several tech CEOs to meet with Vice President Kamala Harris and, briefly, President Joe Biden as part of the White House’s efforts to emphasize the importance of ethical and responsible AI development.

    The hearing and meetings come as ChatGPT has sparked a new arms race over AI. A growing list of tech companies have deployed new AI tools in recent months, with the potential to change how we work, shop and interact with each other. But these same tools have also drawn criticism from some of tech’s biggest names for their potential to disrupt millions of jobs, spread misinformation and perpetuate biases.

    As the CEO of OpenAI, Altman, perhaps more than any other single figure, has come to serve as a face for a new crop of AI products that can generate images and texts in response to user prompts. This week’s hearing may only cement his stature as a central player in AI’s rapid growth – and also add to scrutiny of him and his company.

    Those who know Altman have described him as a brilliant thinker, someone who makes prescient bets and has even been called “a startup Yoda.” In interviews this year, Altman has presented himself as someone who is mindful of the risks posed by AI and even “a little bit scared” of the technology. He and his company have pledged to move forward responsibly.

    “If anyone knows where this is going, it’s Sam,” Brian Chesky, the CEO of Airbnb, wrote in a post about Altman for the latter’s inclusion this year on Time’s list of the 100 most influential people. “But Sam also knows that he doesn’t have all the answers. He often says, ‘What do you think? Maybe I’m wrong?’ Thank God someone with so much power has so much humility.”

    Others want Altman and OpenAI to move more cautiously. Elon Musk, who helped found OpenAI before breaking from the group, joined dozens of tech leaders, professors and researchers in signing a letter calling for artificial intelligence labs like OpenAI to stop the training of the most powerful AI systems for at least six months, citing “profound risks to society and humanity.”

    Altman has said he agreed with parts of the letter. “I think moving with caution and an increasing rigor for safety issues is really important,” Altman said at an event last month. “The letter I don’t think was the optimal way to address it.”

    OpenAI declined to make anyone available for an interview for this story.

    The success of ChatGPT may have brought Altman greater public attention, but he has been a well-known figure in Silicon Valley for years.

    Prior to cofounding OpenAI with Musk in 2015, Altman, a Missouri native, studied computer science at Stanford University, only to drop out to launch Loopt, an app that helped users share their locations with friends and get coupons for nearby businesses.

    In 2005, Loopt was part of the first batch of companies at Y Combinator, a prestigious tech accelerator. Paul Graham, who co-founded Y Combinator, later described Altman as “a very unusual guy.”

    “Within about three minutes of meeting him, I remember thinking ‘Ah, so this is what Bill Gates must have been like when he was 19,’” Graham wrote in a post in 2006.

    Loopt was acquired in 2012 for about $43 million. Two years later, Altman took over from Graham as president of Y Combinator. The position allowed Altman to connect him with numerous powerful figures in the tech industry. He remained at the helm of the accelerator until 2019.

    Margaret O’Mara, a tech historian and professor at the University of Washington, told CNN that Altman “has long been admired as a thoughtful, significant guy and in the remarkably small number of powerful people who are kind of at the top of tech and have a lot of sway.”

    During the Trump administration, Altman gained new attention as a vocal critic of the president. It was against that backdrop that he was rumored to be considering a run for California governor.

    Rather than running, however, Altman instead looked to back candidates who aligned with his values, which include lower cost of living, clean energy and taking 10% off the defense budget to give to research and development of future technology.

    Altman continues to push for some of these goals through his work in the private sector. He invested in Helion, a fusion research company that inked a deal with Microsoft last week to sell clean energy to the tech giant by 2028.

    Altman has also been a proponent of the idea of a universal basic income and has suggested that AI could one day help fulfill that goal by generating so much wealth it could be redistributed back to the public.

    As Graham told The New Yorker about Altman in 2016, “I think his goal is to make the whole future.”

    When launching OpenAI, Musk and Altman’s original mission was to get ahead of the fear that AI could harm people and society.

    “We discussed what is the best thing we can do to ensure the future is good?” Musk told the New York Times about a conversation with Altman and others before launching the company. “We could sit on the sidelines or we can encourage regulatory oversight, or we could participate with the right structure with people who care deeply about developing A.I. in a way that is safe and is beneficial to humanity.”

    In an interview at the launch of OpenAI, Altman explained the company as his way of trying to steer the path of AI technology. “I sleep better knowing I can have some influence now,” he said.

    If there’s one thing AI enthusiasts and critics can agree on right now, it may be that Altman clearly has succeeded in having some influence over the rapidly evolving technology.

    Less than six months after the release of ChatGPT, it has become a household name, almost synonymous with AI itself. CEOs are using it to draft emails. Realtors are using it to write iistings and draft legal documents. The tool has passed exams from law and business schools – and been used to help some students cheat. And OpenAI recently released a more powerful version of the technology underpinning ChatGPT.

    Tech giants like Google and Facebook are now racing to catch up. Similar generative AI technology is quickly finding its way into productivity and search tools used by billions of people.

    A future that once seemed very far off now feels right around the corner, whether society is ready for it or not. Altman himself has professed not to be sure about how it will turn out.

    O’Mara said she believes Altman fits into “the techno-optimist school of thought that has been dominant in the Valley for a very long time,” which she describes as “the idea that we can devise technology that can indeed make the world a better place.”

    While Altman’s cautious remarks about AI may sound at odds with that way of thinking, O’Mara argues it may be an “extension” of it. In essence, she said, it’s related to “the idea that technology is transformative and can be transformative in a positive way but also has so much capacity to do so much that it actually could be dangerous.”

    And if AI should somehow help bring about the end of society as we know it, Altman may be more prepared than most to adapt.

    “I prep for survival,” he said in a 2016 profile of him in the New Yorker, noting several possible disaster scenarios, including “A.I. that attacks us.”

    “I try not to think about it too much,” Altman said. “But I have guns, gold, potassium iodide, antibiotics, batteries, water, gas masks from the Israeli Defense Force, and a big patch of land in Big Sur I can fly to.”

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  • Apple got rich in China. Other Asian markets offer the next ‘golden opportunity’ | CNN Business

    Apple got rich in China. Other Asian markets offer the next ‘golden opportunity’ | CNN Business

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    Hong Kong
    CNN
     — 

    Apple launched an online store in Vietnam this week, in another nod to the growing importance of emerging markets for the iPhone maker.

    The opening on Thursday, which followed the high-profile launch of its first physical shops in India, means consumers in the fast-growing Southeast Asian economy will be able to buy any Apple product directly for the first time.

    Markets like Vietnam, India and Indonesia are becoming more important for Apple as its growth in developed markets, including China, slows down, prompting the company to focus on places where it’s traditionally been less active.

    For decades, China was central to Apple’s extraordinary ascent to become the most valuable company on Earth, serving as a backbone for both its production and consumption. While the country remains key to Apple’s operations, the tech giant is now hedging its bets.

    Apple

    (AAPL)     CEO Tim Cook has pointed to the company’s prospects in emerging economies, calling them bright spots in the company’s financial results. On an earnings call this month, Cook said he was “particularly pleased” with the performance in these markets during the first three months of the year.

    Apple “achieved all-time records in Mexico, Indonesia, the Philippines, Saudi Arabia, Turkey and the UAE, as well as a number of March quarter records, including in Brazil, Malaysia and India,” he told analysts.

    That came as the California-based giant also reported its second straight drop in overall quarterly revenue, prompting concerns about a broader slowdown in demand amid economic uncertainty.

    “Clearly, growth has slowed globally and thus put more pressure [on Apple] to aggressively go after emerging markets,” said Daniel Ives, managing director of Wedbush Securities.

    Ives predicts that “over the coming years, Indonesia, Malaysia and India will comprise a bigger piece of the pie for Apple, given its efforts in these countries.”

    The start of online sales in a country usually precedes the launch of brick-and-mortar stores for Apple, he told CNN. This was true of India, for instance, which got its first physical outlets last month and a pledge from Cook to further invest in the country.

    Thursday’s launch showed how Apple was “further cementing” its presence in emerging markets, according to Chiew Le Xuan, a research analyst who covers smartphones in Southeast Asia for Canalys.

    He said the tech giant had been “actively increasing” its presence in the region in recent months, ramping up its distribution and network of authorized resellers, especially in Malaysia.

    Apple has ample room to run in these markets.

    Currently, the company only operates its own stores in more developed regional economies, such as Thailand and Singapore, according to Canalys.

    Even Indonesia, a vast archipelago that is the world’s sixth-biggest smartphone market, doesn’t have a physical Apple store yet, said Chiew. Apple’s market share there is tiny, at just 1% in 2022, according to Canalys data.

    “We’re putting efforts in a number of these markets and really see, particularly given our low share and the dynamics of the demographics … a great opportunity for us,” Cook said during Apple’s results call.

    Apple joins a growing list of global businesses that have become bullish on Southeast Asia, where more investment is being poured into manufacturing.

    The region’s consumer base also holds promise, with the number of middle-income and affluent households in economies such as Vietnam, Indonesia, and the Philippines projected to grow by around 5% annually through 2030, according to the Boston Consulting Group.

    The consultancy has called this group of consumers “the next mega-market.”

    The allure of Southeast Asia’s rising middle class “has changed the dynamic in these countries, which previously Apple stayed away from,” according to Ives.

    “This is a golden opportunity for Apple,” he said.

    For years, premium brands like Apple have have struggled to compete in emerging markets because of the price of their products, choosing instead to rely on local resellers.

    iPhones, which cost between $470 and $1,100, are expensive for consumers in less developed Southeast Asian economies, where the bulk of smartphone shipments are priced under $200, according to Chiew.

    He said Apple’s absence from places like Cambodia or Vietnam was typically more apparent around the launch of a new iPhone, as buyers from those countries often flew to Singapore or Malaysia to purchase devices and take them back for resale.

    A view of an Apple store at Marina Bay Sands in Singapore in 2020. Buyers from other Southeast Asian countries without their own Apple stores typically line up outside such outlets to buy devices for resale, according to an analyst.

    This could change in the coming years, particularly as Apple continues to increase its firepower in the region.

    Ives predicted that Apple could “further expand its ecosystem and tentacles to emerging markets using its China playbook,” meaning it could try to hook customers through “various pricing strategies and building out from there.”

    Once those users have converted to Apple’s operating system, iOS, they tend to stick around and become loyal customers, he added.

    This has “been the core part of its success in China that now can be replicated in India, Indonesia, and Vietnam, among others,” said Ives.

    But Apple may face hurdles in Southeast Asia, where several countries have placed stringent requirements on foreign businesses, according to Chiew.

    For example, at least 35% of the components of electronic goods sold in Indonesia must made locally, a threshold Apple has had to meet by working with partners, he added. Similar rules prevented Apple from setting up shop in India for years until the relaxation of regulations in 2019.

    And while consumers are becoming more affluent, the company’s price points are still considered high in many emerging markets, noted Ives. “Growth will be choppy we believe.”

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  • Inside the Treasury Department team monitoring early economic warning signs as default threat looms | CNN Politics

    Inside the Treasury Department team monitoring early economic warning signs as default threat looms | CNN Politics

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    CNN
     — 

    Nearly five months before the US was projected to hit the debt ceiling, a small team inside the Treasury Department began alerting top officials to early effects already being felt in the US financial system.

    The cost of insuring US debt, as measured by the price of credit-default swaps, was rising – a sign that investors were beginning to view US bonds and other securities as increasingly risky.

    That early warning – and subsequent ones over the last month as the swaps pricing has surged – came out of the Treasury Department’s Markets Room and its eponymous team of nine financial analysts who are responsible for monitoring and analyzing global financial markets to inform the policy work of top Treasury Department and White House officials.

    As the US rapidly approaches a potential default date in early June, top US officials are increasingly relying on the Markets Room to monitor for signs of disruption in the financial markets.

    “In the same way that a doctor wants to understand the vital signs of a patient as they’re thinking about how to treat them, at Treasury keeping abreast of understanding the various ways in which the economy is healthy or unhealthy. And part of that is understanding the market,” Deputy Treasury Secretary Wally Adeyemo told CNN in an interview.

    “So, we’re spending a lot of time with them better understanding what the costs are today, in order to make sure that we’re in a position to share that information with Congress, in order to prevent us from getting into a position where for the first time in our history, we’re unable to pay all of our obligations on time.”

    That work begins each day before dawn, when staffers take turns waking up around 3:30 a.m. ET to compile data about overnight market developments and begin making calls to contacts working in European and Asian markets.

    At around 7 a.m. ET, those data and insights land in the inboxes of top policymakers at the White House and Treasury Department.

    At 9 a.m. ET, before the US markets open, Treasury Secretary Janet Yellen and her senior leadership team huddle virtually with the Markets Room and other key Treasury Department aides for a briefing on the state of the financial markets and issues to watch for that day.

    “Almost every American is influenced by what’s happening around the globe and global markets either through your 401(k), or your attempt to borrow money for your small business or for your home. So, this team of individuals, every morning, provides us a briefing and an update on what’s happening around the world,” Adeyemo said.

    In recent weeks, that daily briefing has heavily focused on reverberations of the debt limit standoff, from updates on auctions of Treasury bills to market reactions and commentary from market analysts and economists.

    Much of the rest of the day is spent monitoring developments in the financial markets and fielding inquiries from top policymakers at Treasury and the White House for analysis on those developments.

    And at the end of the day, the Markets Room also helps policymakers digest the biggest developments in the financial markets with another widely read one-page memo delivered after the US markets close and before the Asian markets open.

    Beyond the Treasury Department, a White House spokesperson said the unit’s twice-daily memos are “a valuable asset” for officials at the National Economic Council and Council of Economic Advisers.

    “Those offices also rely on the Markets Room’s real-time updates – either in memos or meetings – when more regular monitoring is warranted,” the spokesperson said.

    Officials say the Markets Room is focused on monitoring the global economy’s recovery from the pandemic-induced recession, lingering inflation and the trajectory of the global economy.

    Albert Lee, the Markets Room director, described the unit as an early warning system on the global financial system for top US policymakers.

    In the early days of the coronavirus pandemic, the team was among the first to sound alarm bells inside the federal government about early shocks in pockets of the financial system and predicting rate cuts from the Federal Reserve.

    The team also played a critical role during the banking crisis earlier this year, tracking the sharp selloff of stock and outflows of deposit at Silicon Valley Bank that ultimately triggered the bank’s collapse.

    As the Treasury Department acted to address the second-largest bank failure in US history and prevent any spillover effects in the banking sector, top Treasury Department officials leaned on the Markets Room team to track the feedback of their policy actions.

    “It was critically important for us to understand how markets were interpreting the actions that we took that made clear to the American people that your deposits were safe,” Adeyemo said. “We were monitoring signs of distress in the banking sector.”

    With one week until the government can potentially no longer pay its bills, the US stock market is only just beginning to show signs of concern about a potential default and Treasury officials say the team is focused on tracking further reactions from the stock market as well as the Treasury securities market.

    The stock market’s reaction has, up until now, been relatively muted – especially as compared to the 17% drop the S&P 500 suffered amid the 2011 debt ceiling crisis. But Treasury officials say volatility in the securities market is already affecting the federal government, raising the cost to borrow.

    Yields on short-term Treasury securities have surged and recent auctions for securities are leaving a heftier price tag for the federal government, which Adeyemo said recently incurred $80 million in additional costs for a recent auction of Treasury bills.

    “So, the cost of borrowing has already gotten more expensive when it comes to us borrowing in the short term for the US government,” Adeyemo said. “So as the debt limit manufactured crisis goes on, and costs go up for the government, it also means that costs will go up for the American people as well.”

    Adeyemo declined to disclose what contingencies are being prepared should the US default. But when the US faced a similar standoff on the debt in 2011, Federal Reserve officials and Treasury Department officials quietly prepared a plan to prioritize payments on US debt and delay paying other government bills and obligations, like Social Security and payments to veterans, according to transcripts of a central bank meeting released in 2017.

    “The most important thing for the American people, for our country, for our credibility, not only with our creditors, but with the American people is to pay all of our bills on time. That’s what our system is built to do,” Adeyemo said. “I’ve spent a good part of a decade working here at the Treasury Department. What I can tell you is that there’s no plan that would allow us to meet all of our commitments other than Congress, raising the debt limit.”

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  • One of Asia’s top female entrepreneurs is stepping down at Grab, the ride-hailing company she helped found | CNN Business

    One of Asia’s top female entrepreneurs is stepping down at Grab, the ride-hailing company she helped found | CNN Business

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    Hong Kong
    CNN
     — 

    One of Southeast Asia’s most well-known female entrepreneurs is to step down from her operational roles at Grab, the ride-hailing giant she helped found more than a decade ago.

    Tan Hooi Ling, a former chief operating officer who currently leads the firm’s technology and corporate strategy teams, will move to an advisory role by the end of the year, the company said Thursday. She will also give up her seat on the board.

    Her exit leaves Grab’s Chief Executive Officer Anthony Tan the tough task of reversing years of losses amid increasingly fierce competition in the ride-hailing and food delivery markets, all without the help of the woman who helped him co-found the company in 2012.

    “Grab has been one of the most fulfilling experiences of my life. The impact we create is a reflection of who we are as a team, and I am humbled to have been able to walk alongside Anthony and the many amazing Grabbers who share the same values and work ethic to build something that improves lives in Southeast Asia,” a statement from the company quoted Tan Hooi Ling as saying.

    After being founded as a ride-hailing company by the two Tans – who are both from Malaysia but are unrelated – Grab quickly soared to become Southeast Asia’s most valuable private company. It acquired Uber’s Southeast Asia business in 2018, and has since expanded into a variety of other services, including food delivery, digital payments and even financial services.

    But Grab has faced intensifying competition from Southeast Asia rivals, including Singapore’s Sea Ltd, Indonesia’s GoTo Group, and Berlin-based Delivery Hero’s Foodpanda.

    Grab, which unlike some of its competitors avoided mass layoffs during the coronavirus pandemic, posted an annual loss of $1.74 billion in 2022. That was a 51% improvement on the year before, according to its annual report.

    In 2021, the company merged with a special-purpose acquisition company, or SPAC, backed by Altimeter Capital in a deal that would pave the way for a New York listing and value Grab at nearly $40 billion.

    Before that, Grab had heavyweight backers including Japan’s SoftBank

    (SFTBF)     and China’s ride-hailing startup, Didi Chuxing.

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  • ‘You’re wrong’: McCarthy answers his critics as he faces blowback from GOP hardliners | CNN Politics

    ‘You’re wrong’: McCarthy answers his critics as he faces blowback from GOP hardliners | CNN Politics

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    CNN
     — 

    Senate Majority Leader Chuck Schumer in February made a bold prediction about the GOP and the debt ceiling, asserting: “We don’t believe they have a plan that can pass with Republican votes in the House.”

    He later insisted that the White House would not negotiate with House Speaker Kevin McCarthy on a debt ceiling increase and that ultimately Congress would lift the borrowing limit without any conditions at all.

    “Clean, clean, clean,” he told CNN in April, referencing the push for a clean debt ceiling resolution.

    But McCarthy ultimately passed a bill in April on GOP votes alone. He then later forced President Joe Biden to negotiate a debt limit suspension with spending cuts. And Wednesday night, the House passed the McCarthy-Biden deal by a 314-177 vote, even winning the backing of 149 House Republicans, more than half of his conference, and the support of 165 Democrats. The Senate passed the bill late Thursday night, and it now goes to Biden’s desk for his signature.

    “You’re wrong,” an ebullient McCarthy said when asked about critics underestimating him.

    After one of the longest speaker’s races in history, winning the gavel after an ugly 15-ballot fight, McCarthy has managed to navigate his ideologically divided conference and bring to an end the debt limit standoff – even to the surprise of some of his sharpest critics.

    “I have been thinking about this day since before my vote for speaker because I knew the debt ceiling was coming,” McCarthy said at a news conference following the vote Wednesday night. “I wanted to make history.”

    When asked if he underestimated the speaker, Schumer didn’t answer directly.

    “No. 1, we avoided default – our number one goal, which we’ve been talking about from day one,” Schumer said. “No. 2, it is a far, far cry from where the Republicans started out.”

    Democrats say if the speaker surprised them in the fiscal fight, it’s because they didn’t think he would hold the specter of the first-ever US default over the White House until Biden agreed to negotiate on his terms.

    “I think the Republican House caucus is willing to go to default,” said Rep. Ted Lieu, a California Democrat. “When dealing with folks like that, it’s really hard to negotiate at all.”

    But it didn’t come without a cost.

    After the debt limit deal passed, Republican Rep. Ken Buck of Colorado told CNN that House conservatives will be having discussions about ousting McCarthy “in the next week or two,” although he didn’t commit to following through with that threat.

    A fired-up Buck, who opposed the debt limit deal, told reporters that he has received calls from constituents about removing McCarthy from the speakership. “My constituents are furious and you know what’s so interesting about the calls in the district? They are not only ‘vote against this bill,’ but they are ‘take McCarthy out.’ That’s what the calls are coming in,” he said.

    The same Republicans who held out their votes for McCarthy’s speakership bid in January hated the deal he struck, arguing that it failed to curtail spending or provide conservatives with key policy wins. Several have publicly talked about moving to oust him for the agreement.

    Rep. Chip Roy, the Texas Republican who has vocally slammed the deal, promised a “reckoning” earlier this week after the agreement was reached. And Rep. Dan Bishop, the North Carolina Republican who publicly vowed to target the speaker and potentially oust him from his job, said of his confidence in McCarthy: “None. Zero. What basis is there for confidence?”

    Still, there haven’t been signs yet that the hardline conservatives will actually move to oust the speaker.

    During a House Freedom Caucus conference call Tuesday night, when the motion to vacate was briefly brought up, Chairman Scott Perry, a Pennsylvania Republican, dismissed the idea as “premature” and the conversation quickly moved on, according to a source on the call.

    The source said that there have been private, “independent” discussions about the motion to vacate among some of McCarthy’s fiercest critics, but not among the Freedom Caucus as a whole, where there is far less appetite to go that route.

    After facing an all-consuming debt limit battle for the last several months, McCarthy is ready for the next act of his young speakership – and he’s taking steps that can win over the far-right furious at him over his debt ceiling deal with the White House.

    To win some of his critics back, he’s promising his members that he wants to set up a bipartisan commission to rein in sky-high deficits while also privately vowing to hold the line in the government funding fights to come.

    Rep. Ralph Norman, a South Carolina Republican who said McCarthy has lost “some trust” by cutting the debt deal, told CNN that the speaker had promised that leadership would be “actively” involved in the appropriations process, saying that’s where “the next big debate” will be.

    While the debt limit and spending has bitterly divided the GOP conference, McCarthy is now free to turn toward more unifying measures – and to go on the attack against the Biden administration instead of cutting a deal with the president. It’s one reason why McCarthy was OK with agreeing to the White House’s demand to suspend the debt limit until January 2025, ensuring the divisive issue won’t be litigated before the 2024 elections.

    Asked what’s next now that the debt crisis is behind them, McCarthy told reporters: “We’ve got a number of things.”

    “We’ve got to do appropriations,” he said. “We’ve got a lot of oversight work to do. I don’t know if you’ve followed … FBI Director Wray, not following through on our subpoena. Now he says he would let us look at the document,” McCarthy told reporters.

    The focus internally is already shifting.

    On Wednesday, House Oversight Chairman James Comer said his committee would begin contempt proceedings as early as next week against Wray, in a move that would serve up red meat to the right flank of the GOP conference.

    Comer has demanded that the FBI turn over an internal law enforcement document related to an unverified allegation against Biden, and he said Wednesday that the FBI’s proposed accommodation to allow Comer to view the document would not be sufficient to stop contempt proceedings.

    Another target for far-right Republicans is Alejandro Mayorkas, the Homeland Security secretary whom conservatives want to impeach over problems at the border.

    Rep. Marjorie Taylor Greene, a far-right Georgia Republican who backed McCarthy’s speakership in January, told reporters that she is willing to swallow the debt ceiling deal but said would like to see a “dessert” to go along with it – and specifically named the idea of impeaching Mayorkas or Wray.

    This story has been updated to reflect the bill’s passage in the Senate.

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  • Wagner chief rejects Russian Defense Ministry efforts to rein in his force | CNN

    Wagner chief rejects Russian Defense Ministry efforts to rein in his force | CNN

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    CNN
     — 

    The boss of the Russian private military company Wagner says he won’t sign contracts with Russia’s Defense Ministry, rejecting an attempt to bring his force in line.

    Yevgeny Prigozhin’s comments follow an announcement by the Russian Ministry of Defense Saturday that “volunteer units” and private military groups would be required to sign a contract with the ministry.

    The order – signed by Russian Defense Minister Sergei Shoigu – said the move would “give the voluntary formations the necessary legal status,” and create “unified approaches” to their work.

    The order did not name the Wagner group but the move is seen a way of controlling the influential military force.

    Prigozhin – who has publicly feuded with defense chiefs – said the move did not apply to Wagner.

    “The orders and decrees issued by (Defense Minister Sergei) Shoigu apply to employees of the Ministry of Defense and military personnel. PMC ‘Wagner’ will not sign any contracts with Shoigu,” Prigozhin said in a Telegram post.

    Wagner, he said, would “absolutely” pursue the “the interests of the Russian Federation and the Supreme Commander-in-Chief.”

    Prigozhin and Wagner have played a prominent role in the Ukraine war. In May he said his troops had capture Bakhmut in a costly and largely symbolic gain for Russia.

    The Wagner chief has previously criticized Russia’s traditional military hierarchy, blaming Russian defense chiefs for “tens of thousands” of casualties and stating that divisions could end in a “revolution.”

    He also accused Russian military leaders “sit like fat cats” in “luxury offices,” while his fighters are “dying,” and later accused the Russian Defense Ministry of trying to sabotage his troops’ withdrawal from Bakhmut, claiming the ministry laid mines along the exit routes.

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  • Europe is leading the race to regulate AI. Here’s what you need to know | CNN Business

    Europe is leading the race to regulate AI. Here’s what you need to know | CNN Business

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    London
    CNN
     — 

    The European Union took a major step Wednesday toward setting rules — the first in the world — on how companies can use artificial intelligence.

    It’s a bold move that Brussels hopes will pave the way for global standards for a technology used in everything from chatbots such as OpenAI’s ChatGPT to surgical procedures and fraud detection at banks.

    “We have made history today,” Brando Benifei, a member of the European Parliament working on the EU AI Act, told journalists.

    Lawmakers have agreed a draft version of the Act, which will now be negotiated with the Council of the European Union and EU member states before becoming law.

    “While Big Tech companies are sounding the alarm over their own creations, Europe has gone ahead and proposed a concrete response to the risks AI is starting to pose,” Benifei added.

    Hundreds of top AI scientists and researchers warned last month that the technology posed an extinction risk to humanity, and several prominent figures — including Microsoft President Brad Smith and OpenAI CEO Sam Altman — have called for greater regulation of the technology.

    At the Yale CEO Summit this week, more than 40% of business leaders — including Walmart chief Doug McMillion and Coca-Cola

    (KO)     CEO James Quincy — said AI had the potential to destroy humanity five to 10 years from now.

    Against that backdrop, the EU AI Act seeks to “promote the uptake of human-centric and trustworthy artificial intelligence and to ensure a high level of protection of health, safety, fundamental rights, democracy and rule of law and the environment from harmful effects.”

    Here are the key takeaways.

    Once approved, the Act will apply to anyone who develops and deploys AI systems in the EU, including companies located outside the bloc.

    The extent of regulation depends on the risks created by a particular application, from minimal to “unacceptable.”

    Systems that fall into the latter category are banned outright. These include real-time facial recognition systems in public spaces, predictive policing tools and social scoring systems, such as those in China, which assign people a “health score” based on their behavior.

    The legislation also sets tight restrictions on “high-risk” AI applications, which are those that threaten “significant harm to people’s health, safety, fundamental rights or the environment.”

    These include systems used to influence voters in an election, as well as social media platforms with more than 45 million users that recommend content to their users — a list that would include Facebook, Twitter and Instagram.

    The Act also outlines transparency requirements for AI systems.

    For instance, systems such as ChatGPT would have to disclose that their content was AI-generated, distinguish deep-fake images from real ones and provide safeguards against the generation of illegal content.

    Detailed summaries of the copyrighted data used to train these AI systems would also have to be published.

    AI systems with minimal or no risk, such as spam filters, fall largely outside of the rules.

    Most AI systems will likely fall into the high-risk or prohibited categories, leaving their owners exposed to potentially enormous fines if they fall foul of the regulations, according to Racheal Muldoon, a barrister (litigator) at London law firm Maitland Chambers.

    Engaging in prohibited AI practices could lead to a fine of up to €40 million ($43 million) or an amount equal to up to 7% of a company’s worldwide annual turnover, whichever is higher.

    That goes much further than Europe’s signature data privacy law, the General Data Protection Regulation, under which Meta was hit with a €1.2 billion ($1.3 billion) fine last month. GDPR sets fines of up to €10 million ($10.8 million), or up to 2% of a firm’s global turnover.

    Fines under the AI Act serve as a “war cry from the legislators to say, ‘take this seriously’,” Muldoon said.

    At the same time, penalties would be “proportionate” and consider the market position of small-scale providers, suggesting there could be some leniency for start-ups.

    The Act also requires EU member states to establish at least one regulatory “sandbox” to test AI systems before they are deployed.

    “The one thing that we wanted to achieve with this text is balance,” Dragoș Tudorache, a member of the European Parliament, told journalists. The Act protects citizens while also “promoting innovation, not hindering creativity, and deployment and development of AI in Europe,” he added.

    The Act gives citizens the right to file complaints against providers of AI systems and makes a provision for an EU AI Office to monitor enforcement of the legislation. It also requires member states to designate national supervisory authorities for AI.

    Microsoft

    (MSFT)     — which, together with Google, is at the forefront of AI development globally — welcomed progress on the Act but said it looked forward to “further refinement.”

    “We believe that AI requires legislative guardrails, alignment efforts at an international level, and meaningful voluntary actions by companies that develop and deploy AI,” a Microsoft spokesperson said in a statement.

    IBM

    (IBM)    , meanwhile, called on EU policymakers to take a “risk-based approach” and suggested four “key improvements” to the draft Act, including further clarity around high-risk AI “so that only truly high-risk use cases are captured.”

    The Act may not come into force until 2026, according to Muldoon, who said revisions were likely, given how rapidly AI was advancing. The legislation has already gone through several updates since drafting began in 2021.

    “The law will expand in scope as the technology develops,” Muldoon said.

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  • Everything you need to know about AI but were too afraid to ask | CNN Business

    Everything you need to know about AI but were too afraid to ask | CNN Business

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    CNN
     — 

    Business executives keep talking about it. Teachers are struggling with what to do about it. And artists like Drake seem angry about it.

    Love it or hate it, everyone is paying attention to artificial intelligence right now. Almost overnight, a new crop of AI tools has found its way into products used by billions of people, changing the way we work, shop, create and communicate with each other.

    AI advocates tout the technology’s potential to supercharge our productivity, creating a new era of better jobs, better education and better treatments for diseases. AI skeptics have raised concerns about the technology’s potential to disrupt jobs, mislead people and possibly bring about the end of humanity as we know it. Confusingly, some execs in Silicon Valley seem to hold both sets of views at once.

    What’s clear, however, is that AI is not going away, but it is changing very fast. Here’s everything you need to know to keep up.

    In the public consciousness, “artificial intelligence” may conjure up images of murderous machines eager to overtake humans, and capable of doing so. But in the tech industry, it’s a broad term that refers to different tools that are trained to perform a wide range of complex tasks that might previously have required some input from an actual person.

    If you use the internet, then you almost certainly use services that rely on AI to sort data, filter content and make suggestions, among other tasks.

    It’s the technology that allows Netflix to recommend movies and that helps remove spam, hate speech and other inappropriate content from your social media feeds. It helps power everything from autocorrect features and Google Translate to facial recognition services, the last of which uses AI that, in Microsoft’s words, “mimics a human capability to recognize human faces.”

    AI can also be successful in developing techniques for solving a wide range of real world problems, such as adjusting traffic signals in real time to manage congestion issues or helping medical professionals analyze images to make a diagnosis. AI is also central to developing self-driving cars by processing tremendous amounts of visual data so the vehicles can understand their surroundings.

    The short answer: ChatGPT.

    For years, AI has largely operated in the background of services we use every day. That changed following the November launch of ChatGPT, a viral chatbot that put the power of AI front and center.

    People have already used ChatGPT, a tool created by OpenAI, to draft lawsuits, write song lyrics and create research paper abstracts so good they’ve even fooled some scientists. The tool has even passed standardized exams. And ChatGPT has sparked an intense competition among tech companies to develop and deploy similar tools.

    Microsoft and Google have each introduced features powered by generative AI, the technology underpinning ChatGPT, into their most widely used productivity tools. Meta, Amazon and Alibaba have said they’re working on generative AI tools, too. And numerous other businesses also want in on the action.

    It’s rare to see a cutting-edge technology become so ubiquitous almost overnight. Now businesses, educators and lawmakers are all racing to adapt.

    Generative AI enables tools to create written work, images and even audio in response to prompts from users.

    To get those responses, several Big Tech companies have developed their own large language models trained on vast amounts of online data. The scope and purpose of these data sets can vary. For example, the version of ChatGPT that went public last year was only trained on data up until 2021 (it’s now more up to date).

    These models work through a method called deep learning, which learns patterns and relationships between words, so it can make predictive responses and generate relevant outputs to user prompts.

    As impressive as some generative AI services may seem, they essentially just do pattern matching. These tools can mimic the writing of others or make predictions about what words might be relevant in their responses based on all the data they’ve previously been trained on.

    AGI, on the other hand, promises something more ambitious — and scary.

    AGI — short for artificial general intelligence — refers to technology that can perform intelligent tasks such as learning, reasoning and adapting to new situations in the way that humans do. OpenAI CEO Sam Altman has teased the possibility of a superintelligent AGI that could go on to change the world or perhaps backfire and end humanity.

    For the moment, however, AGI remains purely a hypothetical, so don’t worry too much about it.

    Anytime there’s an excess of buzz around a technology, it’s good to be skeptical — and there is certainly a lot of that here. Investor fascination with AI has helped push Wall Street back into a bull market, despite lingering economic uncertainty.

    Not all AI tools are equally useful and many companies will certainly tout AI features and strategies simply to tap into the current hype cycle. But even in just the past six months, AI has already shown potential to change how people do numerous everyday tasks.

    One of the biggest selling points around AI chatbots, for example, is their ability to make people more productive. Earlier this year, some real estate agents told CNN that ChatGPT saved them hours of work not only by writing listings for homes for sale but also looking up the permitted uses for certain land and calculating what mortgage payments or the return on investment might be for a client, which typically involve formulas and mortgage calculators.

    Artificial intelligence is also much broader than ChatGPT and other generative AI tools. Even if you think AI chatbots are annoying or might be a fad, the underlying technology will continue to power meaningful advances in products and services for years to come.

    The fear is AI will eliminate millions of jobs. The hope is it will help improve how millions do their jobs. The current reality is somewhere in between.

    Companies will likely need new workers to help them implement and manage AI tools. Employment of data analysts and scientists, machine learning specialists and cybersecurity experts is forecast to grow 30% on average by 2027, according to one recent estimate from the World Economic Forum.

    But the proliferation of AI will also likely put many roles at risk eventually. There could be 26 million fewer record-keeping and administrative jobs by 2027, the WEF predicted. Data entry clerks and executive secretaries are expected to see the steepest losses.

    For now, there are clearly limits to how well AI can do the job of a human on its own. When CNET, a media outlet, experimented with using AI to write articles, it came under scrutiny for publishing pieces with factual errors. Likewise, a lawyer in May made headlines for citing false court cases to a judge provided to him by ChatGPT. In an affidavit, the lawyer said he had never used ChatGPT as a legal research tool before and “was unaware of the possibility that its content could be false.”

    Alphabet CEO Sundar Pichai, left, and OpenAI CEO Sam Altman arrive to the White House for a meeting with Vice President Kamala Harris on artificial intelligence, Thursday, May 4, 2023, in Washington.

    Top AI executives have warned that AI could potentially bring about human extinction. But these same executives are also racing to deploy the technology into their products.

    Some experts say that focusing on far-off doomsday scenarios may distract from the more immediate harms that AI can cause, such as spreading misinformation, perpetuating biases that exist in training data, and enabling discrimination.

    For example, generative AI could be used to create deepfakes to spread propaganda during an election or enable a frightening new era of scams. Some AI models have also been criticized for what the industry calls “hallucinations,” or making up information.

    Even before the rise of ChatGPT, there were concerns about AI acting as a gatekeeper that can determine who does and does not move forward in a hiring process, for example. AI-powered facial recognition systems have also resulted in some wrongful arrests, and research has shown these systems are drastically more prone to error when trying to match the faces of darker skinned people.

    The more AI tools are incorporated into core parts of society, the more potential there is for unintended consequences.

    Regulators in the United States and Europe are pushing for legislation to help put guardrails in place for AI, which could ultimately impact how the technology develops. But it’s unclear if lawmakers can keep pace with the rapid advances in AI.

    Experts believe in the months ahead, generative AI will go on to create even more realistic images, videos, and audio that could further disrupt media, entertainment, tech and other industries. The technology will likely become increasingly conversational and personalized.

    In March, OpenAI unveiled GPT-4, the next-generation version of the technology that powers ChatGPT. According to the company and early tests, GPT-4 is able to provide more detailed and accurate written responses, pass academic tests with high marks and build a working website from a hand-drawn sketch. (Altman has previously said OpenAI is not yet training GPT-5.)

    AI will almost certainly be infused into many more products and services in the coming months. That means we’ll all have to learn how to live with it.

    As ChatGPT put it in response to a prompt from CNN, “AI has the potential to transform our lives … but it’s crucial for companies and individuals to be mindful of the accompanying risks and responsibly address concerns.”

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  • OpenAI, maker of ChatGPT, hit with proposed class action lawsuit alleging it stole people’s data | CNN Business

    OpenAI, maker of ChatGPT, hit with proposed class action lawsuit alleging it stole people’s data | CNN Business

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    CNN
     — 

    OpenAI, the company behind the viral ChatGPT tool, has been hit with a lawsuit alleging the company stole and misappropriated vast swaths of peoples’ data from the internet to train its AI tools.

    The proposed class action lawsuit, filed Wednesday in a California federal court, claims that OpenAI secretly scraped “massive amounts of personal data from the internet,” according to the complaint. The nearly 160-page complaint alleges that this personal data, including “essentially every piece of data exchanged on the internet it could take,” was also seized by the company without notice, consent or “just compensation.”

    Moreover, this data scraping occurred at an “unprecedented scale,” the suit claims.

    OpenAI did not immediately respond to CNN’s request for comment Wednesday. Microsoft, a major investor into OpenAI, was also named as a defendant in the suit and did not immediately respond to a request for comment.

    “By collecting previously obscure personal data of millions and misappropriating it to develop a volatile, untested technology, OpenAI put everyone in a zone of risk that is incalculable – but unacceptable by any measure of responsible data protection and use,” Timothy K. Giordano, a partner at Clarkson, the law firm behind the suit, said in a statement to CNN Wednesday.

    The complaint also claims that OpenAI products “use stolen private information, including personally identifiable information, from hundreds of millions of internet users, including children of all ages, without their informed consent or knowledge.”

    The lawsuit seeks injunctive relief in the form of a temporary freeze on further commercial use of OpenAI’s products. It also seeks payments of “data dividends” as financial compensation to people whose information was used to develop and train OpenAI’s tools.

    OpenAI publicly launched ChatGPT late last year, and the tool immediately went viral for its ability to generate compelling, human-sounding responses to user prompts. The success of ChatGPT spurred an apparent AI arms race in the tech world, as companies big and small are now racing to develop and deploy AI tools into as many products as possible.

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  • Biden has already canceled $66 billion in student loans. Here’s how 3 people received debt relief | CNN Politics

    Biden has already canceled $66 billion in student loans. Here’s how 3 people received debt relief | CNN Politics

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    Washington
    CNN
     — 

    Even though the Supreme Court struck down President Joe Biden’s student loan forgiveness program, more debt will be canceled during his time in office than under any other president.

    The Biden administration has already canceled a record $66 billion in student loan debt for nearly 2.2 million borrowers.

    While his one-time student loan forgiveness program would have been far reaching, promising up to $20,000 of debt cancellation for eligible borrowers and wiping out roughly $400 billion overall, the Department of Education has made some lesser-known changes to existing student loan forgiveness programs.

    The administration has made it easier for people to qualify for the Public Service Loan Forgiveness program, which grants relief for public sector workers after they’ve made 10 years of qualifying payments.

    It has also made more people eligible for the borrower defense to repayment program that cancels student loan debt for borrowers who attended a school that may have misled them or violated certain state laws, as well as made loan discharges automatic for more borrowers who are permanently disabled.

    Here’s how three people received student loan forgiveness due to the changes the Biden administration has made to existing federal programs.

    Margo Myles, 52, got a letter from the Department of Education in late March saying that nearly $25,000 of her federal student loan debt had been canceled.

    Myles had borrowed the money in the early 2000s to earn an associate degree in paralegal studies, but the education didn’t pay off. She found work in the legal field a few years after finishing school but was earning just $9 an hour – not enough to pay her bills and her student loans.

    “I was trying to reorganize my life. For me, and for so many other students, this should have been a door,” Myles said of her degree program.

    Instead, she defaulted on her student loans. The default dinged her credit and resulted in the garnishment of her federal tax refunds. Myles said she wasn’t allowed to request her academic transcript while her loans were in default, preventing her from enrolling elsewhere.

    The Department of Education later found that schools owned by the now-defunct Corinthian Colleges – which include Myles’ alma mater, known at the time as Florida Metropolitan University – engaged in “widespread and pervasive misrepresentations” about students’ employment prospects, including guarantees they would find a job as well as the ability to transfer credits.

    Under the borrower defense program, borrowers can apply for debt relief if they were misled by their college. Last June, the Department of Education announced that any student who attended a Corinthian-owned college would automatically qualify for the benefit. The move made 560,000 more borrowers eligible.

    About nine months later, Myles learned that she was one of the qualifying borrowers and her debt was discharged. The Department of Education said it would request credit reporting agencies to repair her credit within 45 days, according to the letter she received.

    Myles, who now lives in Cheyenne, Wyoming, and works in insurance, plans to continue her education by pursuing a bachelor’s degree and then a law degree.

    “I’ve always wanted to go back to school. I don’t care if I’m 60 when I finish,” she said.

    Paige Vass recently qualified for the Public Service Loan Forgiveness program.

    Applying for the Public Service Loan Forgiveness program was a yearslong, frustrating process for Paige Vass, a special education teacher in Virginia.

    The PSLF program cancels remaining federal student loan debt for eligible government and nonprofit workers after they have made 120 qualifying monthly payments, which takes at least 10 years.

    But the program has been riddled with problems. Many people reached 10 years of repayment believing they qualified for cancellation of their remaining debt, but instead found out that they had the wrong kind of loan or were making payments in the wrong kind of repayment plan.

    Vass applied after teaching for more than 10 years, but her paperwork was returned several times, for things like having an incorrect date or a signature in the wrong place.

    She decided to try applying one more time last year after the Biden administration temporarily expanded eligibility for the program with a one-year waiver.

    “My fingers were crossed, but I also thought I might be chasing a unicorn,” Vass, 47, said.

    “But I was like, I’ve got to try. This is a huge debt and a huge weight on our family,” she added. She and her husband, who is also an educator, have two children.

    This spring, not only did Vass find out that she qualified for more than $30,000 in debt relief, but she is also set to receive a refund of about $5,000 because she had overpaid. Under the rules of the temporary waiver, she had made more payments than the 120 required for debt forgiveness.

    The debt relief means she may be able to spend more time with her kids. In the past, when she’s owed hundreds of dollars for her student debt each month, she’s worked summer school, taught skiing and worked for the on-demand delivery company DoorDash for some extra cash.

    “There’s been so many changes and so many hardships for teachers over the last three years. To me (the loan forgiveness) felt like a statement on behalf of our country’s administration that says, ‘You are valuable and we appreciate what you do, and you do make a difference,’” Vass said.

    Charles Goldenberg saw more than $340,000 of his debt canceled.

    Last year, Charles Goldenberg, a radiologist in New York City, got an email notifying him that his more than $340,000 in federal student loan debt had been canceled because he qualified for the PSLF program.

    While in training, and making little money, Goldenberg was paying off his loans through an income-driven repayment plan, which lowered his monthly payments. But those payments hardly covered the interest accumulation, and his balance ballooned before the pandemic pause went into effect in 2020.

    Now, at 42, Goldenberg said the student debt cancellation gives him the opportunity to move on with his life.

    “And I think that’s the whole point of the PSLF program. You spend years of training and schooling above and beyond college, making less money than you would when you’re out of training. It’s not without sacrifice. It’s because you work for eligible employers … where you’re not going to be making the kind of money that I make now,” he added.

    Goldenberg had been paying off some his loans for 19 years, but not every payment had counted toward the PSLF program until he consolidated his loans about two years ago.

    Thanks to the one-year waiver put in place by the Biden administration, some payments he made earlier became eligible.

    Applying for the relief had also been a long process for Goldenberg. His loan servicer had difficulty verifying that one of his employers, a nonprofit hospital in Miami, qualified for the program. He eventually found proof on the Department of Education’s website that the hospital did qualify.

    Now that Goldenberg is done with training and is earning more money, his student loan payments would be much higher when the pandemic-related pause ends later this year than they were three years ago. He expects they would be $2,500 or more a month if not for the debt relief.

    “Now I can use the money that I make for myself, for a mortgage, for family, for other expenses, for retirement. So it really opened up my financial future in a big way,” he said.

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  • China-based hackers breached US government email accounts, Microsoft and White House say | CNN Politics

    China-based hackers breached US government email accounts, Microsoft and White House say | CNN Politics

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    CNN
     — 

    China-based hackers have breached email accounts at two-dozen organizations, including some United States government agencies, in an apparent spying campaign aimed at acquiring sensitive information, according to statements from Microsoft and the White House late Tuesday.

    The full scope of the hack is being investigated, but US officials and Microsoft have been quietly scrambling in recent weeks to assess the impact of the hack, which targeted unclassified email systems, and contain the fallout.

    The federal agency where the Chinese hackers were first detected was the State Department, a person familiar with the matter told CNN. The State Department then reported the suspicious activity to Microsoft, the person said.

    The Department of Commerce, which has sanctioned Chinese telecom firms, was also breached. The hackers accessed Commerce Secretary Gina Raimondo’s email account, one source familiar with the investigation told CNN. The Washington Post first reported on the access of the secretary’s account.

    The Chinese hackers were detected targeting a small number of federal agencies and just a handful of officials’ email accounts at each agency in a hack aimed at specific officials, multiple sources familiar with the investigation told CNN.

    “Microsoft notified the (Commerce) Department of a compromise to Microsoft’s Office 365 system, and the Department took immediate action to respond,” a department spokesperson said in a statement on Wednesday.

    The spokesperson did not immediately reply to a request for comment on the targeting of Raimondo’s email account.

    The hackers targeted email accounts at the House of Representatives, but it was unclear who was targeted and if the breach attempts were successful, two sources familiar with the matter told CNN.

    The breaches add to what is already one of the steepest cybersecurity challenges facing the Biden administration: limiting the ability of Beijing’s formidable hacking teams to access US government and corporate secrets.

    “Last month, US government safeguards identified an intrusion in Microsoft’s cloud security, which affected unclassified systems,” National Security Council spokesperson Adam Hodge said in a statement to CNN.

    “Officials immediately contacted Microsoft to find the source and vulnerability in their cloud service,” Hodge said. “We continue to hold the procurement providers of the US Government to a high security threshold.”

    The State Department “detected anomalous activity, took immediate steps to secure our systems, and will continue to closely monitor and quickly respond to any further activity,” a department spokesperson said on Wednesday.

    US Capitol Police declined to comment, referring CNN to the FBI.

    Hodge did not identify who was behind the hack, but Microsoft executives said in a blog post that the hackers were based in China and focused on espionage.

    In response to the Microsoft and White House statements, the Chinese foreign ministry on Wednesday accused Washington of conducting its own hacking operations.

    US officials have consistently labeled China as the most advanced of US adversaries in cyberspace, a domain that has repeatedly been a source of bilateral tension in recent years. The FBI has said Beijing has a larger hacking program than all other governments combined.

    China has routinely denied the allegations.

    The hacking began in mid-May, when the China-based hackers used a stolen sign-in key to burrow their way into email accounts, according to Microsoft. The tech giant has since blocked the hackers from accessing customer emails using that technique, Microsoft said late Tuesday.

    Secretary of State Antony Blinken visited China in mid-June, but it was not immediately clear if the cyber-espionage campaign was connected to that high-stakes visit.

    Some US officials credited the State Department with investing in more cyber-defense capabilities, allowing the agency to detect the suspicious activity earlier than in past advanced hacks.

    The number of US organizations, public or private, impacted by the hacking campaign is in the “single digits,” a senior US Cybersecurity and Infrastructure Security Agency official told reporters on Wednesday.

    “This appears to have been a very targeted, surgical campaign,” the official said.

    This story has been updated with additional information.

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  • Call of Duty to remain on Playstation following Activision Blizzard Microsoft merger | CNN Business

    Call of Duty to remain on Playstation following Activision Blizzard Microsoft merger | CNN Business

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    CNN
     — 

    Microsoft

    (MSFT)     has signed an agreement with Sony

    (SNE)     to ensure “Call of Duty” remains available on PlayStation after Microsoft

    (MSFT)     closes its $69 billion Activision Blizzard

    (ATVI)     merger, the tech giant said Sunday.

    The agreement could resolve long-standing complaints by Sony that the merger — which aims to make Microsoft the third-largest video game publisher in the world — threatens competition. Sony didn’t immediately respond to a request for comment.

    “We are pleased to announce that Microsoft and @PlayStation have signed a binding agreement to keep Call of Duty on PlayStation following the acquisition of Activision Blizzard,” said Phil Spencer, Microsoft’s Xbox head, in a tweet. “We look forward to a future where players globally have more choice to play their favorite games.”

    Sony had been among the loudest critics of the acquisition. Addressing the company’s concerns about the continued availability of “Call of Duty,” one of the industry’s most popular franchises, could help Microsoft overcome any remaining opposition to the deal and usher it to a conclusion.

    In response to competition concerns from regulators around the world, Microsoft had already signed multiyear licensing agreements with rival companies including Nintendo and Nvidia, among others, to ensure Microsoft would not be able to restrict Activision titles from users of those businesses’ platforms and consoles.

    On Sunday, Microsoft did not disclose the duration of the agreement with Sony.

    “From Day One of this acquisition, we’ve been committed to addressing the concerns of regulators, platform and game developers, and consumers,” said Microsoft President Brad Smith in a tweet. “Even after we cross the finish line for this deal’s approval, we will remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before.”

    During a five-day hearing last month in federal court, Microsoft executives including CEO Satya Nadella testified properties such as “Call of Duty” would not be restricted from competitors following the deal’s close.

    Last week, US District Judge Jacqueline Scott Corley wrote in her opinion the US government had “not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets.”

    Microsoft faces a contractual deadline of July 18 to close the merger with Activision, though the companies could mutually seek to extend that time frame.

    Last week, Microsoft won two successive court victories when a federal district court and a US appeals court declined to temporarily block the merger from being consummated. The Federal Trade Commission had argued a preliminary injunction was necessary to prevent video game consumers from being immediately harmed by the deal, which regulators said would enable Microsoft to withhold “Call of Duty” and other popular titles from competing consoles and cloud gaming services.

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  • TSMC says skilled worker shortage delays start of Arizona chip production | CNN Business

    TSMC says skilled worker shortage delays start of Arizona chip production | CNN Business

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    Shares of Taiwan Semiconductor Manufacturing Co slumped more than 3% Friday after the world’s largest contract chipmaker flagged a 10% drop in 2023 sales and said production due to start next year at its first plant in Arizona would be delayed.

    On Thursday, TSMC

    (TSM)     reported a 23% fall in second-quarter net profit — its first year–on-year drop in quarterly profit since 2019 — as global economic woes take a toll on demand for chips used in everything from cars to cellphones.

    “While the company’s declining revenue and profit were disappointing, its long-term growth prospects remain encouraging,” said Brady Wang, associate director at Counterpoint Research. “Despite facing macroeconomic headwinds, TSMC’s long-term outlook remains robust, supported by mega trends like 5G and high-performance computing.”

    As TSMC steps up its global expansion, the company said production at its first plant in Arizona will be delayed until 2025 due to a shortage of specialist workers.

    “While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time, we expect the production schedule of N4 process technology to be pushed out to 2025,” TSMC chairman Mark Liu said Thursday.

    TSMC’s total investment in the US project amounts to $40 billion.

    The company said its position as the largest manufacturer of artificial intelligence chips and high demand for AI have not offset broader end-market weakness as the global economy recovers more slowly than it had expected.

    “The short-term frenzy about the AI demand definitely cannot extrapolate for the long term. Neither can we predict the near future — meaning next year — how the sudden demand will continue or flatten out,” Liu said.

    Still, the company’s earnings of 181.8 billion Taiwan dollars ($5.85 billion) for the quarter ending in June beat forecasts.

    “We see TSMC well-positioned for a strong growth outlook in 2024,” Goldman Sachs said in a research note. “We believe the US expansion delay is also well-expected by investors.”

    Other analysts, too, were upbeat on TSMC, thanks in part to strong demand for AI, which currently accounts for around 6% of the company’s revenue.

    “We expect a solid 2024-onward outlook on the back of its leading position in AI chip manufacturing,” Citi Research analysts said in a note.

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  • Pro-Chinese online influence campaign promoted protests in Washington, researchers say | CNN Politics

    Pro-Chinese online influence campaign promoted protests in Washington, researchers say | CNN Politics

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    CNN
     — 

    A Chinese marketing firm likely organized and promoted protests in Washington last year as part of a wide-ranging pro-Beijing influence campaign, according to new research.

    The Chinese firm also used a network of over 70 fake news websites to promote pro-China content in an example of the more aggressive efforts by pro-China operatives to influence US political debate in recent years, according to security firm Mandiant, which analyzed the activity.

    One of the protests was against a US government ban on goods produced in China’s Xinjiang region, where US officials have accused the Chinese government of systematic repression of the Uyghurs. The other protest was on the sidelines of a June conference on international religious freedom, Mandiant said.

    One of the protests only attracted roughly a dozen people but it showed the scope and ambition of the pro-China efforts.

    The hired protesters, who included self-proclaimed musicians and actors in the Washington, DC, area, apparently had no idea they were being enlisted in a pro-China influence campaign, the Mandiant researchers said.

    The campaign backed by the Chinese firm, Shanghai Haixun Technology Co., Ltd., is “intended to sow discord in US society,” Ryan Serabian, a senior analyst at Mandiant, told CNN.

    In both cases, protesters carry placards and chant slogans about racial discrimination and abortion in the US. Haixun, the Chinese firm, distributed videos of the protesters online to further the influence campaign, according to Mandiant.

    Shanghai Haixun Technology did not respond to a request for comment.

    Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, said he was unaware of the details of the research. “China has always adhered to non-interference in other countries’ internal affairs,” Liu said in an email to CNN.

    The Washington Post first reported on the Mandiant research.

    In the runup to the 2016 US presidential elections, Russian operatives used social media to organize protests on American soil as part of Moscow’s election interference, according to US intelligence officials. Such divisive tactics are no longer confined to the Russians, according to election security experts.

    During the 2022 US midterm elections, pro-China propagandists showed signs of engaging in “Russia-style influence activities” that stoke American divisions, FBI officials told reporters last year. The FBI pointed to Facebook’s shutdown of accounts originating in China that posted memes mocking President Joe Biden and Republican Sen. Marco Rubio of Florida.

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  • Apple faces $1 billion UK lawsuit by app developers over App Store fees | CNN Business

    Apple faces $1 billion UK lawsuit by app developers over App Store fees | CNN Business

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    More than 1,500 app developers in the United Kingdom brought a £785 million ($1 billion) class action lawsuit against Apple Tuesday over its App Store fees.

    Revenues at Apple

    (AAPL)    ’s services business, which includes the App Store, have grown rapidly in the last few years and now hover around $20 billion per quarter.

    However, the commissions of 15% to 30% that the company charges some app makers for using an in-app payment system have been criticized by app developers and targeted by antitrust regulators in several countries.

    Apple has previously said that 85% of developers on the App Store do not pay any commission and that it helps European developers access markets and customers in 175 countries around the world through the App Store.

    The UK lawsuit at the Competition Appeal Tribunal is being brought by Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia and a former economist at the Organisation for Economic Co-operation and Development, on behalf of 1,566 app developers.

    He is being advised by law firm Geradin Partners.

    “Apple’s charges to app developers are excessive and only possible due to its monopoly on the distribution of apps onto iPhones and iPads,” Ennis said in a statement.

    “The charges are unfair in their own right and constitute abusive pricing. They harm app developers and also app buyers.”

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  • Twitter threatens to sue hate-speech watchdog group | CNN Business

    Twitter threatens to sue hate-speech watchdog group | CNN Business

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    Washington, DC
    CNN
     — 

    Elon Musk has called himself a free-speech absolutist and has praised “even my worst critics.” But now Twitter has threatened to sue a nonprofit known for sharply criticizing the platform for its handling of hate speech and misinformation.

    In a July 20 letter shared publicly Monday, Twitter threatened to sue the Center for Countering Digital Hate, accusing the group of a campaign to hurt Twitter by driving away its advertisers. The CCDH has published numerous reports about various social media companies’ approach to everything from vaccine misinformation to online racism and antisemitism.

    The letter by Alex Spiro, an outside attorney representing Twitter owner Musk, alleges that CCDH has made “inflammatory, outrageous, and false or misleading assertions about Twitter and its operations” through its reports, which he argued lack scientific rigor.

    To back up his claim, Spiro cited one report in which CCDH staff flagged tweets from 100 Twitter Blue subscribers to the platform as being harmful and found that after several days, the company had not taken action on the vast majority of it. The resulting CCDH report said Twitter had failed to act on “99% of Twitter Blue accounts tweeting hate.”

    “This article leaves no doubt that CCDH intends to harm Twitter’s business by driving advertisers away from the platform with incendiary claims,” Spiro wrote to CCDH CEO Imran Ahmed, adding that Twitter is investigating whether it can sue the nonprofit for making false descriptions of the company.

    CCDH tweeted Spiro’s July 20 letter along with the organization’s reply to Twitter — which Musk has since rebranded as X — that called the legal threat “ridiculous.”

    “These allegations not only have no basis in fact (your letter states none), but they represent a disturbing effort to intimidate those who have the courage to advocate against incitement, hate speech and harmful content online, to conduct research and analysis regarding the drivers of such disinformation, and to publicly release the findings of that research, even when the findings may be critical of certain platforms,” wrote CCDH’s attorneys in a response dated Monday.

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

    Since taking over Twitter, Musk has slashed roughly 80% of the company’s staff, including many working on the platform’s content moderation teams.

    In December, Twitter shuttered its Trust and Safety Council comprised of outside experts on online safety, human rights, mental health, suicide prevention and child sexual exploitation.

    Reports from multiple groups, including CCDH but also the Anti-Defamation League as well as researchers from Tufts University and the University of Southern California, have pointed to observed increases in hate speech.

    Musk claimed that impressions of hate speech — which he described as based on a list of “bad words” — declined in the month following his takeover.

    But concerns about the platform’s handling of hateful content under Musk last year have persisted, prompting many brands to pause their advertising on Twitter and contributing to sharp financial losses at the company.

    Despite claiming in April that most of Twitter’s advertisers had returned, Musk acknowledged this month that Twitter’s ad revenue remains down by 50% and that the company is still cash-flow negative.

    In addition, Twitter has made changes to its platform restricting how third parties can access its data, a move that has drawn widespread criticism from academic researchers who study extremism and other online harms. The changes, which require researchers to pay hefty fees, could inhibit studies on how misinformation, harassment and spam spread on Twitter, experts have said.

    Threatening lawsuits has become a favored tactic for Musk as Twitter faces continued pressure. Earlier this month, Twitter threatened to sue Facebook-parent Meta over the launch of its competing app, Threads, accusing the company of copying Twitter’s product through trade secret theft. In May, Spiro sent a letter to Microsoft accusing it of over-using its ability to download tweets from the platform as Musk stepped up his criticism of the Redmond, Wash.-based tech giant as a perceived rival in artificial intelligence technology.

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  • Opinion: Utah’s startling new rules for kids and social media | CNN

    Opinion: Utah’s startling new rules for kids and social media | CNN

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    Editor’s Note: Kara Alaimo, an associate professor of communication at Fairleigh Dickinson University, writes about issues affecting women and social media. Her book, “Over the Influence: Why Social Media Is Toxic for Women and Girls — And How We Can Reclaim It,” will be published by Alcove Press in 2024. The opinions expressed in this commentary are her own. Read more opinion on CNN.



    CNN
     — 

    Utah’s Republican governor, Spencer Cox, recently signed two bills into law that sharply restrict children’s use of social media platforms. Under the legislation, which takes effect next year, social media companies have to verify the ages of all users in the state, and children under age 18 have to get permission from their parents to have accounts.

    Parents will also be able to access their kids’ accounts, apps won’t be allowed to show children ads, and accounts for kids won’t be able to be used between 10:30 p.m. and 6:30 a.m. without parental permission.

    It’s about time. Social networks in the United States have become potentially incredibly dangerous for children, and parents can no longer protect our kids without the tools and safeguards this law provides. While Cox is correct that these measures won’t be “foolproof,” and what implementing them actually looks like remains an open question, one thing is clear: Congress should follow Utah’s lead and enact a similar law to protect every child in this country.

    One of the most important parts of Utah’s law is the requirement for social networks to verify the ages of users. Right now, most apps ask users their ages without requiring proof. Children can lie and say they’re older to avoid some of the features social media companies have created to protect kids — like TikTok’s new setting that asks 13- to 17-year-olds to enter their passwords after they’ve been online for an hour, as a prompt for them to consider whether they want to spend so much time on the app.

    While critics argue that age verification allows tech companies to collect even more data about users, let’s be real: These companies already have a terrifying amount of intimate information about us. To solve this problem, we need a separate (and comprehensive) data privacy law. But until that happens, this concern shouldn’t stop us from protecting kids.

    One of the key components of this legislation is allowing parents access to their kids’ accounts. By doing this, the law begins to help address one of the biggest dangers kids face online: toxic content. I’m talking about things like the 2,100 pieces of content about suicide, self-harm and depression that 14-year-old Molly Russell in the UK saved, shared or liked in the six months before she killed herself last year.

    I’m also talking about things like the blackout challenge — also called the pass-out or choking challenge — that has gone around social networks. In 2021, four children 12 or younger in four different states all died after trying it.

    “Check out their phones,” urged the father of one of these young victims. “It’s not about privacy — this is their lives.”

    Of course, there are legitimate privacy concerns to worry about here, and just as kids’ use of social media can be deadly, social apps can also be used in healthy ways. LGBTQ children who aren’t accepted in their families or communities, for example, can turn online for support that is good for their mental health. Now, their parents will potentially be able to see this content on their accounts.

    I hope groups that serve children who are questioning their gender and sexual identities and those that work with other vulnerable youth will adapt their online presences to try to serve as resources for educating parents about inclusivity and tolerance, too. This is also a reminder that vulnerable children need better access to mental health services like therapy — they’re way too young to be left to their own devices to seek out the support they need online.

    But, despite these very real privacy concerns, it’s simply too dangerous for parents not to know what our kids are seeing on social media. Just as parents and caregivers supervise our children offline and don’t allow them to go to bars or strip clubs, we have to ensure they don’t end up in unsafe spaces on social media.

    The other huge challenge the Utah law helps parents overcome is the amount of time kids are spending on social media. A 2022 survey by Common Sense Media found that the average 8- to 12-year-old is on social media for 5 hours and 33 minutes per day, while the average 13- to 18 year-old spends 8 hours and 39 minutes every day. That’s more time than a full time-job.

    The American Academy of Pediatrics warns that lack of sleep is associated with serious harms in children — everything from injuries to depression, obesity and diabetes. So parents in the US need to have a way to make sure their kids aren’t up on TikTok all night (parents in China don’t have to worry about this because the Chinese version of TikTok doesn’t allow kids to stay on for more than 40 minutes and isn’t useable overnight).

    Of course, Utah isn’t an authoritarian state like China, so it can’t just turn off kids’ phones. That’s where this new law comes in requiring social networks to implement these settings. The tougher part of Utah’s law for tech companies to implement will be a provision requiring social apps to ensure they’re not designed to addict kids.

    Social networks are arguably addictive by nature, since they feed on our desires for connection and validation. But hopefully the threat of being sued by children who say they’ve been addicted or otherwise harmed by social networks — an outcome for which this law provides an avenue — will force tech companies to think carefully about how they build their algorithms and features like bottomless feeds that seem practically designed to keep users glued to their screens.

    TikTok and Snap didn’t respond to requests for comment from CNN about Utah’s law, while a representative for Meta, Facebook’s parent company, said the company shares the goal to keep Facebook safe for kids but also wants it to be accessible.

    Of course, if social networks had been more responsible, it probably wouldn’t have come to this. But in the US, tech companies have taken advantage of a lack of rules to build platforms that can be dangerous for our kids.

    States are finally saying no more. In addition to Utah’s measures, California passed a sweeping online safety law last year. Connecticut, Ohio and Arkansas are also considering laws to protect kids by regulating social media. A bill introduced in Texas wouldn’t allow kids to use social media at all.

    There’s nothing innocent about the experiences many kids are having on social media. This law will help Utah’s parents protect their kids. Parents in other states need the same support. Now, it’s time for the federal government to step up and ensure children throughout the country have the same protections as Utah kids.

    Suicide & Crisis Lifeline: Call or text 988. The Lifeline provides 24/7, free and confidential support for people in distress, prevention and crisis resources for you and your loved ones, and best practices for professionals in the United States. En Español: Linea de Prevencion del Suidio y Crisis: 1-888-628-9454.

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  • 300 million jobs could be affected by latest wave of AI, says Goldman Sachs | CNN Business

    300 million jobs could be affected by latest wave of AI, says Goldman Sachs | CNN Business

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    Hong Kong
    CNN
     — 

    As many as 300 million full-time jobs around the world could be automated in some way by the newest wave of artificial intelligence that has spawned platforms like ChatGPT, according to Goldman Sachs economists.

    They predicted in a report Sunday that 18% of work globally could be computerized, with the effects felt more deeply in advanced economies than emerging markets.

    That’s partly because white-collar workers are seen to be more at risk than manual laborers. Administrative workers and lawyers are expected to be most affected, the economists said, compared to the “little effect” seen on physically demanding or outdoor occupations, such as construction and repair work.

    In the United States and Europe, approximately two-thirds of current jobs “are exposed to some degree of AI automation,” and up to a quarter of all work could be done by AI completely, the bank estimates.

    If generative artificial intelligence “delivers on its promised capabilities, the labor market could face significant disruption,” the economists wrote. The term refers to the technology behind ChatGPT, the chatbot sensation that has taken the world by storm.

    ChatGPT, which can answer prompts and write essays, has already prompted many businesses to rethink how people should work every day.

    This month, its developer unveiled the latest version of the software behind the bot, GPT-4. The platform has quickly impressed early users with its ability to simplify coding, rapidly create a website from a simple sketch and pass exams with high marks.

    Further use of such AI will likely lead to job losses, the Goldman Sachs economists wrote. But they noted that technological innovation that initially displaces workers has historically also created employment growth over the long haul.

    While workplaces may shift, widespread adoption of AI could ultimately increase labor productivity — and boost global GDP by 7% annually over a 10-year period, according to Goldman Sachs.

    “Although the impact of AI on the labor market is likely to be significant, most jobs and industries are only partially exposed to automation and are thus more likely to be complemented rather than substituted by AI,” the economists added.

    “Most workers are employed in occupations that are partially exposed to AI automation and, following AI adoption, will likely apply at least some of their freed-up capacity toward productive activities that increase output.”

    Of US workers expected to be affected, for instance, 25% to 50% of their workload “can be replaced,” the researchers added.

    “The combination of significant labor cost savings, new job creation, and a productivity boost for non-displaced workers raises the possibility of a labor productivity boom like those that followed the emergence of earlier general-purpose technologies like the electric motor and personal computer.”

    — CNN’s Nicole Goodkind contributed to this report.

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  • Trump legal team will look to challenge ‘every potential issue’ once indictment is unsealed | CNN Politics

    Trump legal team will look to challenge ‘every potential issue’ once indictment is unsealed | CNN Politics

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    Washington
    CNN
     — 

    Donald Trump’s legal team will look to challenge “every potential issue” in his indictment once the charges are unsealed, an attorney for the former president said Sunday.

    “We’re not doing anything at the arraignment because that would be showmanship and nothing more because we haven’t even seen the indictment yet. We will take the indictment, we will dissect it, the team will look at every – every – potential issue that we will be able to challenge and we will challenge it,” Joe Tacopina told CNN’s Dana Bash on “State of the Union.”

    Tacopina and other Trump lawyers have done several TV interviews in anticipation of the former President’s first appearance in court Tuesday, when he will learn the charges that the Manhattan grand jury has approved against him.

    At times, the lawyers have vowed to ask for the charges to be dismissed. But the full slate of charges still aren’t known. And crucially, a judge will ultimately determine if the law is sound enough for the case to move forward to trial.

    Former Manhattan District Attorney Cy Vance said in an interview with NBC News on Sunday, “We can speculate on what evidence we think they may or may not have, but even with the indictment published, we really will not know what the district attorney’s evidence is and what they would present at trial.”

    Vance’s team investigated the case but did not charge it, leaving it under the purview of his successor, Alvin Bragg.

    Trump faces more than 30 counts related to business fraud in the indictment. The investigation by the Manhattan district attorney’s office began when Trump was still in the White House and relates to a $130,000 payment made by his then-personal attorney Michael Cohen to adult film star Stormy Daniels in late October 2016, days before the presidential election, to silence her from going public about an alleged affair with Trump a decade earlier.

    Trump has denied the affair.

    The Trump team’s court strategy could center around challenging the case because it may rely on business record entries that prosecutors tie to hush money payments to Daniels seven years ago, beyond the statute of limitations for a criminal case.

    Tacopina suggested in TV interviews Sunday that the statute of limitations may be passed, and said the Trump businesses didn’t make false entries.

    “They’re not false entries. But assuming they were, they’re misdemeanors way beyond the statute of limitations, so they had to cobble them together to try and get a felony,” he said.

    Tacopina on Sunday also said a request to move the case to a different New York City borough isn’t on the table yet for Trump’s legal team.

    “There’s been no discussion of that whatsoever,” he told ABC’s George Stephanopoulos in another interview. “It’s way too premature to start worrying about venue changes until we really see the indictment and grapple with the legal issues.”

    CORRECTION: This story has been updated to correct Cy Vance’s comments to NBC.

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