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  • Biden and Sunak meet amid a turning point in the Russia-Ukraine war | CNN Politics

    Biden and Sunak meet amid a turning point in the Russia-Ukraine war | CNN Politics

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    CNN
     — 

    When United Kingdom Prime Minister Rishi Sunak visited the White House on Thursday, he hoped a shared perspective on Ukraine and a new push for economic partnership could reinforce what has been a steady, if rather business-like, working relationship.

    For President Joe Biden and his team, a relatively low-key prime minister whose term has outlasted a wilting head of lettuce – unlike his predecessor’s – is reason enough for celebration.

    “There is no issue of global importance, none, that our nations are not leading together and where we’re not sharing our common values to make things better,” Biden said at the start of a news conference, during which the leaders unveiled a new economic partnership that stopped short of a free trade agreement.

    Stability in 10 Downing Street has allowed for better coordination on Ukraine, according to officials, and helped resolve a festering dispute over Northern Ireland trade rules. Sunak’s pragmatic approach in some ways mirrors Biden’s, even if they hold opposing ideological outlooks.

    That made Thursday’s meeting in the Oval Office – Sunak’s first since taking office – a key moment for the men as they look to deepen their relationship.

    As the meeting got underway, Biden thanked Sunak for his partnership on Ukraine, and hailed the relationship between their two countries.

    “You know Prime Minister Churchill and Roosevelt met here a little over 70 years ago and they asserted that the strength of the partnership between Great Britain and the United States was strength of the free world. I still think there’s truth to that assertion,” Biden said.

    The talks come at a turning point in the Russia-Ukraine war, following the collapse of the Nova Kakhovka dam and ahead of a widely expected counteroffensive meant to retake territory. The White House said Ukraine would be “top of mind” in Thursday’s meeting.

    In his news conference, Biden said he was confident that Congress would continue providing support for Ukraine, despite a divide among Republicans.

    “The fact of the matter is that I believe we’ll have the funding necessary to support Ukraine as long as it takes,” Biden said. “I believe that we’re going to get that support, it will be real.”

    As he began his visit in Washington, Sunak said Wednesday it is “too early” to determine what caused the destruction of the dam in southern Ukraine’s Kherson region.

    “Our military and security services are currently investigating it. But if it is intentional, it would represent an unprecedented level of barbarism,” he told Sky News in Washington.

    The US and UK have been the leading contributors of military aid to Ukraine, and are coordinating on providing F-16 fighter jets to reinforce long-term deterrence against Russia.

    At the same time, Sunak is coming into the meeting with major economic priorities, including a push for closer investment links and more resilient supply chains.

    He’s also expected to deliver a pitch on making Britain a world leader on developing and regulating artificial intelligence – an area that a British official said was “very much on the prime minister’s mind” and that Biden’s aides are also watching closely. Because of Britain’s exit from the EU, the country has been left out of talks with the US and Europe on the emerging technology. Sunak, who studied in Silicon Valley and views tech as a key issue, is proposing a summit meeting in the fall to discuss AI.

    Biden said he was looking at “watermarks on everything that has to do with, produced by AI,” and acknowledged the technology’s potential for both good but also “great damage.”

    Ahead of the visit, Sunak cast his economic objectives as directly linked to the security agenda.

    “The UK and US have always worked in lockstep to protect our people and uphold our way of life. As the challenges and threats we face change, we need to build an alliance that also protects our economies,” he said. “Just as interoperability between our militaries has given us a battlefield advantage over our adversaries, greater economic interoperability will give us a crucial edge in the decades ahead.”

    Not on the agenda, according to US and UK officials, is a new bilateral trade deal, which had been discussed under former President Donald Trump but now remains on ice.

    The broad agenda reflects the typically extensive list of issues between the two nations, whose partnership is nearly always described by their leaders as a “special relationship.” Indeed, officials in London and Washington both describe the bond between Biden and Sunak as warm and friendly, as would be expected between the leaders of two countries so closely aligned.

    When Biden met Sunak in San Diego earlier this year, he made reference to the condo the Stanford MBA graduate maintains in California.

    “That’s why I’m being very nice to you, maybe you can invite me to your home,” Biden said, perhaps unknowingly raising what has been a controversial issue for the prime minister.

    Still, there are undeniable differences between the two men, not least on issues of government economic intervention and the complicated exit of Britain from the European Union.

    Few see Biden and Sunak developing a transatlantic friendship akin to Ronald Reagan and Margaret Thatcher, George W. Bush and Tony Blair, or Barack Obama and David Cameron (who called each other “bro”).

    While the two men have encountered each other several times over the past year, including last month at the Group of 7 summit in Japan, it will be Sunak’s first time at the White House for formal talks since he assumed the premiership in October.

    Sunak traveled to San Diego in March for a three-way defense summit and met with Biden in Belfast during the president’s visit to Northern Ireland in April. Yet that meeting was only a brief chat over tea; Biden spent most of his visit to Ireland exploring his ancestral roots.

    There is little question the two men hold very different political ideologies, even if they share a pragmatic, low-drama style – at least compared with their predecessors.

    Some members of Sunak’s government have openly criticized Biden’s Inflation Reduction Act, calling green subsidies included in the package protectionist and warning they would harm American allies. And Sunak has voiced a more limited view of government’s role in the economy, akin to his ideological predecessor Thatcher.

    Biden’s intense interest in resolving a long-festering dispute in Northern Ireland over trade rules has also caused tension. He said after visiting the island in April his trip was intended “to make sure the Brits didn’t screw around” with the region’s peace structure – a comment that only intensified views among unionists of his pro-Irish allegiances.

    There are also generational differences; at 43, Sunak is the youngest leader in the G7 club of industrial democracies while Biden is the oldest at 80.

    Still, Sunak has acted as a stabilizing force at 10 Downing Street after a tumultuous period that saw three prime ministers take the job over the course of two months.

    Biden and his aides made little attempt to disguise their frustrations with Boris Johnson, a top Brexit proponent. His successor, Liz Truss, was barely in office long enough for Biden to form a full opinion.

    By comparison, Sunak has sought to resolve some of the sticky issues that felled his predecessors. He did strike an agreement with the European Union on trade rules in Northern Ireland, though the deal wasn’t enough to bring unionists back to a power sharing government

    And he has been a staunch proponent of economic and military support for Ukraine, most recently in a pledge to help train Ukrainian pilots on western fighter jets.

    One area of discussion likely to arise will be NATO’s next secretary general. Sunak has been lobbying for the British defense secretary Ben Wallace, but other candidates are also thought to be under consideration. The job is typically reserved for a European but would require Biden’s sign-off.

    This story has been updated with additional information.

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  • States accelerate efforts to block Chinese purchases of agricultural land | CNN Politics

    States accelerate efforts to block Chinese purchases of agricultural land | CNN Politics

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    Washington
    CNN
     — 

    A growing number of states are considering or have passed measures this legislative term to ban “foreign adversaries” and foreign entities – specifically China – from buying farmland.

    Proponents of the laws, mostly Republicans but some Democrats as well, have frequently cited concerns about food security and the need to protect military bases and other sensitive installations. But the moves have stoked anxieties among some experts on US-Chinese relations, including those who see echoes of past discriminatory laws in the United States like the Chinese Exclusion Act.

    Florida last month joined a list of at least seven other states – including Virginia, North Dakota, Montana and Arkansas – to pass variations of such bills this session, according to the National Agricultural Law Center (NALC), which is tracking the issue and conducts research on agricultural and food law. Similar measures are percolating in more than two dozen states and there’s a bill in Congress that seeks to federalize the issue, the NALC said.

    States have previously sought to limit foreign investment, said Micah Brown, a staff attorney at the NALC. What’s new, Brown says, is that some lawmakers are taking aim at specific countries and their governments.

    “2023 is really swinging for the fences here, with a majority of states having some kind of proposal, at least one proposal,” Brown told CNN.

    Of slightly more than 40 million acres of agricultural held by foreign investors in the United States, China held less than 1% of that land – or 383,935 acres – as of the end of 2021, according to a report from the US Department of Agriculture.

    Florida’s law, signed on May 8, prohibits most citizens from “foreign countries of concern” from purchasing land on or within 10 miles of any “military installation or critical infrastructure facility,” including seaports, airports and power plants. It was signed alongside a different bill that bans internet applications like TikTok on Florida government devices, a similar area of focus for state politicians who have concerns about Chinese influence.

    The foreign countries of concern that are named include China, Russia, Cuba, North Korea and Iran, along with agencies and governments operating on their behalf. In public remarks, governor and 2024 Republican presidential candidate Ron DeSantis repeatedly called out China.

    “Today, Florida makes it very clear: We don’t want the (Chinese Communist Party) in the Sunshine State. We want to maintain this as the ‘Free State of Florida.’ That’s exactly what these bills are doing,” DeSantis said at a bill signing in May.

    Following the bill’s passage, a group of Chinese citizens who live and work in Florida, along with a real estate company with primarily Chinese and Chinese-American clients, sued state officials, alleging the law would violate their equal protection and due process guarantees under the US Constitution. CNN has reached out to the governor’s office for comment.

    Virginia’s legislation doesn’t name China, though Republican Gov. Glenn Youngkin has specifically cited the CCP in advocating for the new law. Montana’s applies to “foreign adversaries” as designated by the US Commerce Department, a list that includes China, Iran, North Korea and Russia.

    Brown said the 2023 laws are part of a larger “political flashpoint” prompted out of concerns over Chinese companies attempting to build agricultural sites near military bases in North Dakota and Texas. States including Arkansas and Indiana already had laws restricting certain foreign investments prior to this year’s legislative push.

    In North Dakota, a US subsidiary of Chinese company Fufeng Group attempted to build a wet corn milling plant in Grand Forks that would have sat near an Air Force base there and thus pose what the Department of the Air Force called a “significant threat to national security.”

    The head of Fufeng’s US operation denied the company has a “direct relationship” with the Chinese government in an interview with the Grand Forks Herald last year.

    “We’ve got lots of places in North Dakota they could have built that plant without being a security risk, but instead, they chose to buy land right next to an Air Force base,” North Dakota Republican state Rep. Lawrence Klemin, who co-sponsored the state’s bill, told CNN. “We’ve got two Air Force bases in North Dakota, and we’ve got lots of places where we don’t have them, so why didn’t they do that?” Klemin’s bill was signed in April.

    Texas is also considering a bill that would bar “hostile nations including China,” in the state from purchasing real property, like agricultural land, as Republican State. Sen. Lois Kolkhorst describes her legislation. The bill initially ignited controversy because it would have barred citizens of China and other adversarial countries from buying land in the state, though the bill was later amended to clarify that it would not apply to lawful permanent residents, US citizens and dual citizens and to include an exception for property considered “residence homestead.”

    Several experts on US-China relations with whom CNN spoke warned against knee-jerk responses and called for lawmakers to act on evidence, not suspicion.

    “I think there’s a good reason to want to keep control of strategic interests in one’s own country … but these bills about farmland, these bills about just property in general, to me, it’s transparent that they’re rooted in racism and xenophobia again because we’ve seen this before. It really isn’t the first time,” said Nancy Qian, a professor of economics at Northwestern University’s Kellogg School of Management who has conducted research on US exclusion laws.

    Yan Bennett, the assistant director of the Paul and Marcia Wythes Center on Contemporary China at Princeton University, noted that US farmland is appealing for China because the country has food security issues and does not have enough arable land for cultivation.

    “When national security is threatened, yes, we need to take action,” Bennett told CNN. “But not every land purchase by a foreign government or a foreign national is a national security threat, so we need to make sure that we distinguish those purchases from those that are actual threats.”

    An atmosphere of racism and anti-China sentiment threatens other US interests as well, such as possibly deterring Chinese students from wanting to come to the US and obtain advanced degrees, explained Robert Daly, the director of the Kissinger Institute on China and the United States at the Wilson Center.

    “If we’re not careful that we are telling the world’s biggest talent pool that they’re an unwelcomed class or a reviled class here in the United States and that will also have implications for Chinese Americans,” Daly told CNN in February. “Real demonstrable security threats have to be met as such. I’m not saying that the Chinese Communist Party does not have plans and intentions that harm America’s interests – it does, and we need to go after those – but based on evidence.”

    In response to efforts in Texas and other states that are considering barring some Chinese citizens from owning US land over national security concerns, China’s Foreign Ministry spokesperson said earlier this year that trade between the two countries is “mutually beneficial.”

    “To overstretch the concept of national security and politicize economic, trade and investment issues runs counter to the principles of market economy and international trade rules, which undercuts international confidence in the US market environment,” spokesperson Mao Ning said at a news briefing in February.

    Virginia state Sen. Ryan McDougle, a Republican and co-sponsor of his state’s new law, dismissed what he called “ridiculous” concerns about his bill perpetuating racism against Asian-Americans, telling CNN in February it is “focused on a country that has established hostility to the United States.”

    In the near future, the Chinese spy balloon incident earlier this year will prompt increased attention to “the challenges that we are seeing from the CCP” – and thus the issue of Chinese farmland purchases in the US, predicted Rep. Dan Newhouse, a Washington Republican. The longtime China critic is sponsoring a bill in Congress that would that would ban the purchase of public or private agricultural land in the US by foreign nationals linked to the Chinese government.

    “I think people are waking up to the fact that we need to be more aware of what’s going on and prevent something happening that we don’t want to see,” Newhouse said.

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  • The Supreme Court just handed Joe Biden a series of setbacks. It may have also given Democrats new motivation to reelect him | CNN Politics

    The Supreme Court just handed Joe Biden a series of setbacks. It may have also given Democrats new motivation to reelect him | CNN Politics

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    CNN
     — 

    President Joe Biden wasn’t planning to take questions on Thursday. His helicopter was waiting outside on the White House’s South Lawn.

    But after a 10-minute statement on the Supreme Court’s affirmative action ruling, a CNN reporter called out, “Is this a rogue court?” The president stopped in his tracks.

    Pausing to think a moment, he looked over his shoulder. “This is not a normal court,” he said before leaving.

    This week’s monumental rulings – striking down affirmative action in college admissions and unraveling Biden’s student debt relief plan among them – amount to serious setbacks for a president who promised as a candidate to advance racial equity and erase student debt.

    They are also an urgent reminder to Democrats of the enduring consequences of elections at a moment Biden’s advisers are searching for ways to inject enthusiasm into his bid for another term.

    What impact that will have on the coming election remains unknown. But Biden and his team have already begun assigning blame on Republicans for dismantling programs that have benefited young, college-educated and minority voters – all critical components of the Democratic coalition Biden will need to mobilize if he hopes to win reelection.

    That three justices within the court’s conservative majority were appointed by President Donald Trump – both Biden’s predecessor and, according to polls, his most likely opponent next year – creates even more of an impetus for Biden to use the rulings as a political cudgel as his campaign heats up.

    “The excesses of the Supreme Court are going to backfire,” said Rep. Ritchie Torres, a New York Democrat. “You know, the Supreme Court’s decision to overturn Roe versus Wade reduced what was supposed to be a red wave in the 2022 election cycle to nothing more than a red trickle. So not only is the Supreme Court’s decision bad law, it’s also bad politics and it’s going to come back to haunt the Republican Party.”

    Speaking to a group of Democratic donors in New York City on Thursday evening, Biden sought to underscore the stakes of the court’s new supermajority, a preview of how he’ll frame the issue over the coming year.

    “The Supreme Court is becoming not just conservative, but almost – it’s like a throwback. It’s like a throwback, some of the decisions they’re making,” Biden told donors in a private dining room inside the Seagram Building. “Did you ever think we’d be in a position, after 50 years of acknowledging the right of privacy in the Constitution, suggesting that there’s no such thing as the right to privacy?”

    Despite his criticism of the court, Biden has rejected some liberal suggestions on reforming the panel. He opposes expanding the number of justices that sit on the court and hasn’t embraced term limits.

    “If we start the process of trying to expand the court, we’re going to politicize it, maybe forever, in a way that is not healthy,” Biden said during a friendly interview on MSNBC shortly after Thursday’s decision on affirmative action.

    Biden’s student loan plan, which came about last year after months of agonizing internal debate over its costs and eligibility criteria, was intended to free low- and middle-income Americans from crippling debt.

    Throughout the process, Biden expressed concern at being seen as offering a handout to the wealthy. Eventually, pressure to fulfill one of his top campaign promises led to the plan to forgive up to $20,000 in student loan debt for certain borrowers.

    For months the White House publicly said there was no alternative plan if the Supreme Court struck down the student debt relief program. But behind the scenes, top White House officials were working for several weeks to fulfill a simple directive from the president to “be ready in the event the Supreme Court did not do the right thing,” White House officials said.

    The president’s charge to his team was described as this: “If the court ruled against the program, find other ways to deliver relief for as many working and middle-class borrowers as possible, accounting for all the legal issues.”

    For the past few weeks, White House chief of staff Jeff Zients gathered his team for weekly meetings to map out all scenarios for the Supreme Court’s ruling and explore all legal avenues available to them after the president told his team to build a “fully developed response” to all possible rulings, officials said.

    Zient’s office – led by deputy chief of staff Natalie Quillian, the Domestic Policy Council, National Economic Council and White House Counsel’s Office – worked with the Department of Education and the Department of Justice to come up with options the administration could take if the ruling was not in their favor.

    “All of these meetings were structured around one question – how would we be able to deliver relief to as many borrowers as we could, as quickly as possible under any possible outcome of the Supreme Court,” official said.

    The White House also stayed in touch with and fielded suggestions for next steps from debt relief advocate groups and congressional allies throughout the process. Lawyers from the White House, Justice Department and Education Department examined all of the recommendations, including administration action and the legal authorities available to the administration, and ultimately crafted responses for multiple scenarios.

    Inside the White House, some officials had held out hope the court would uphold Biden’s student debt program, pointing to some surprising decisions over the past weeks that saw some conservative justices joining liberals on issues of voting rights and congressional redistricting.

    But even Biden acknowledged after the court’s oral arguments in February he wasn’t certain the ruling would go his way.

    “I’m confident we’re on the right side of the law,” Biden told CNN in March when asked if he was confident the administration would prevail in the case. “I’m not confident of the outcome of the decision yet.”

    His instinct was correct. The president was in the Oval Office on Friday morning when he was informed of the Supreme Court’s decision by his senior aides and then engaged in meetings stretching into the afternoon to fine-tune their response after the ruling was not in their favor.

    Ultimately, the president directed his team to move forward with a new plan, which includes pursuing a new path for debt relief through the authorities in the Higher Education Act of 1965, which was promoted by some debt relief advocate groups and progressive lawmakers, as well as creating a temporary 12-month “on-ramp repayment” program for federal student loan borrowers when payments resume in October.

    A day earlier, Biden was watching the news on television when the affirmative action decision was handed down by the court, according to an official. A team from the White House counsel’s office came to brief him on the ruling.

    “In our conversations with the White House about why student debt cancelation was needed, it’s about reducing the racial wealth gap,” said Wisdom Cole, national director of the Youth & College division at the NAACP. “If the administration is committed to diversity, equity, and inclusion, they must use every tool in their toolkit. Every legal authority to ensure that we see relief happen.”

    Demonstrating urgency in responding to the court’s actions was a key objective as the White House prepared for both rulings, according to people familiar with the matter.

    Looming over the preparations was the impression left after last year’s Supreme Court term that the Biden administration was unprepared for the decision striking down the nationwide right to abortion, despite a leaked court opinion months ahead of time indicating the justices were prepared to overturn Roe v. Wade.

    The White House has strongly denied it was caught flat-footed on abortion and has pointed to actions taken in the months after the decision to expand access, including to medication abortion.

    The issue proved galvanizing to Democratic voters in November’s midterm elections and has propelled Democratic victories even in traditionally Republican districts.

    Whether the court’s ruling on student debt relief and affirmative action can have a similar effect will prove critical over the coming year, as Biden works to convince voters he is still fighting to fulfill his promises. Initial reaction from progressive Democrats was positive.

    “It was not a foregone conclusion that the President would act so swiftly today. But he announced an alternative path to student debt cancellation by using his Higher Education Act authority given by Congress – and that deserves praise,” said Adam Green, co-founder of the Progressive Change Institute.

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  • Meta officially launches Twitter rival Threads | CNN Business

    Meta officially launches Twitter rival Threads | CNN Business

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    CNN
     — 

    Facebook has tried to compete with Twitter in numerous ways over the years, including copying signature Twitter features such as hashtags and trending topics. But now Facebook’s parent company is taking perhaps its biggest swipe at Twitter yet.

    Meta on Wednesday officially launched a new app called Threads, which is intended to offer a space for real-time conversations online, a function that has long been Twitter’s core selling point.

    The app appears to have many similarities to Twitter, from the layout to the product description. The listing, which first appeared earlier this week as a teaser, emphasizes its potential to build a following and connect with like-minded people.

    “The vision for Threads is to create an option and friendly public space for conversation,” Meta CEO Mark Zuckerberg said in a Threads post following the launch. “We hope to take what Instagram does best and create a new experience around text, ideas, and discussing what’s on your mind.”

    Zuckerberg said on his verified Threads account that the app passed 2 million sign-ups in the first two hours. Later on Wednesday, he wrote that Threads “passed 5 million sign ups in the first four hours.”

    He also responded to posts and shared his thoughts on whether Threads will ever be bigger than Twitter.

    “It’ll take some time, but I think there should be a public conversations app with 1 billion+ people on it. Twitter has had the opportunity to do this but hasn’t nailed it,” Zuckerberg wrote on Threads. “Hopefully we will.”

    The app’s listing describes it as a place where communities can come together to discuss everything from the topics they care about today to what’s trending.

    “Whatever it is you’re interested in, you can follow and connect directly with your favorite creators and others who love the same things — or build a loyal following of your own to share your ideas, opinions and creativity with the world,” it reads.

    Meta said messages posted to Threads will have a 500 character limit. The company said it was bringing the app to 100 countries via Apple’s iOS and Android.

    After downloading the app, users are asked to link up their Instagram page, customize their profile and follow the same accounts they already follow on Instagram. The look is similar to Twitter with a familiar layout, text-based feed, the ability repost and quote other Thread posts. But it also blends Instagram’s existing aesthetic and offers the ability to share posts from Threads directly to Instagram Stories. Verified Instagram accounts are also automatically verified on Threads. Thread accounts can also be listed as public or private.

    The new app joins a growing list of Twitter rivals and could pose the biggest threat to Twitter of the bunch, given Meta’s vast resources and its massive audience.

    It also comes amid heightened turmoil at Twitter, which experienced an outage over the weekend, followed by an announcement that the site had imposed temporary limits on how many tweets its users are able to read while using the app.

    In this photo illustration, the app Threads from Meta seen displayed on a mobile phone. Threads is the latest app launched by Meta, which will be available from the 6th of July 2023 and will be a direct rival of social network Twitter, which has been facing a number of issues after the controversial takeover from entrepreneur Elon Musk.

    Twitter owner Elon Musk said these restrictions had been applied “to address extreme levels of data scraping and system manipulation.” Commenting on the launch of Threads Monday, he tweeted: “Thank goodness they’re so sanely run,” parroting reported comments by Meta executives that appeared to take a jab at Musk’s erratic behavior.

    Since acquiring Twitter in October, Musk has turned the social media platform on its head, alienating advertisers and some of its highest-profile users. He is now looking for ways to return the platform to growth. Twitter announced Monday that users would soon need to pay for TweetDeck, a tool that allows people to organize and easily monitor the accounts they follow.

    Twitter is also attempting to encroach on Meta’s domain. In May, Twitter added encrypted messaging and said calls would follow, developments that could allow the platform to compete with Facebook Messenger and WhatsApp, also owned by Meta.

    The escalating rivalry between the two companies only appears to have added to the rivalry between Musk and Meta CEO Mark Zuckerberg.

    In response to a tweet last month from a user about Threads, Musk wrote: “I’m sure Earth can’t wait to be exclusively under Zuck’s thumb with no other options.” In a followup tweet, Musk teased the idea of a cage match with Zuckerberg.

    Zuckerberg fired back in an Instagram story by posting a screenshot of Musk’s tweet overlaid with the caption: “Send Me Location.”

    And after the Threads app debuted, Zuckerberg tweeted an image of two cartoon Spider-Men pointing at each other.

    – CNN’s Hanna Ziady contributed to this report.

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  • Thousands of authors demand payment from AI companies for use of copyrighted works | CNN Business

    Thousands of authors demand payment from AI companies for use of copyrighted works | CNN Business

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    Washington
    CNN
     — 

    Thousands of published authors are requesting payment from tech companies for the use of their copyrighted works in training artificial intelligence tools, marking the latest intellectual property critique to target AI development.

    The list of more than 8,000 authors includes some of the world’s most celebrated writers, including Margaret Atwood, Dan Brown, Michael Chabon, Jonathan Franzen, James Patterson, Jodi Picoult and Philip Pullman, among others.

    In an open letter they signed, posted by the Authors Guild Tuesday, the writers accused AI companies of unfairly profiting from their work.

    “Millions of copyrighted books, articles, essays, and poetry provide the ‘food’ for AI systems, endless meals for which there has been no bill,” the letter said. “You’re spending billions of dollars to develop AI technology. It is only fair that you compensate us for using our writings, without which AI would be banal and extremely limited.”

    Tuesday’s letter was addressed to the CEOs of ChatGPT-maker OpenAI, Facebook-parent Meta, Google, Stability AI, IBM and Microsoft. Most of the companies didn’t immediately respond to a request for comment. Meta, Microsoft and Stability AI declined to comment.

    Much of the tech industry is now working to develop AI tools that can generate compelling images and written work in response to user prompts. These tools are built on large language models, which are trained on vast troves of information online. But recently, there has been growing pressure on tech companies over alleged intellectual property violations with this training process.

    This month, comedian Sarah Silverman and two authors filed a copyright lawsuit against OpenAI and Meta, while a proposed class-action suit accused Google of “stealing everything ever created and shared on the internet by hundreds of millions of Americans,” including copyrighted content. Google has called the lawsuit “baseless,” saying it has been upfront for years that it uses public data to train its algorithms. OpenAI did not previously respond to a request for comment on the suit.

    In addition to demanding compensation “for the past and ongoing use of our works in your generative AI programs,” the thousands of authors who signed the letter this week called on AI companies to seek permission before using the copyrighted material. They also urged the companies to pay writers when their work is featured in the results of generative AI, “whether or not the outputs are infringing under current law.”

    The letter also cites this year’s Supreme Court holding in Warhol v Goldsmith, which found that the late artist Andy Warhol infringed on a photographer’s copyright when he created a series of silk screens based on a photograph of the late singer Prince. The court ruled that Warhol did not sufficiently “transform” the underlying photograph so as to avoid copyright infringement.

    “The high commerciality of your use argues against fair use,” the authors wrote to the AI companies.

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

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

    – CNN’s Catherine Thorbecke contributed to this report.

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  • Microsoft and Activision extend their deal deadline | CNN Business

    Microsoft and Activision extend their deal deadline | CNN Business

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    Washington
    CNN
     — 

    Microsoft and Activision have mutually agreed to extend their merger deadline by three months in the face of ongoing negotiations with the UK government that could allow the $69 billion acquisition to close, the two companies announced on Wednesday.

    The announcement highlights the commitment by both companies to complete the deal after back-to-back court defeats for US regulators who had challenged the merger.

    The new contractual deadline for consummating the deal will be October 18, the companies said. The previous deadline was July 18.

    “Together with @Activision, we are announcing the extension of our merger agreement to 10/18 to provide ample time to work through the final regulatory issues,” Brad Smith, Microsoft’s vice chair and president, said in a Twitter post on Wednesday.

    If the companies fail to close by Aug. 29, Microsoft could be asked to pay a breakup fee of $3.5 billion, an increase of $500 million over the previously agreed-upon sum, according to a filing from Activision with the Securities and Exchange Commission. If the deal fails to close by Sept. 15, the breakup fee could increase to $4.5 billion, the filing said.

    In addition, according to the filing, if the companies fail to complete their merger and Microsoft is forced to pay the breakup fee, the companies also agreed that beginning on Oct. 18 Microsoft would have to pay Activision “100% of all proceeds or other payments for games” that belong to Activision.

    Following a federal judge’s decision last week in the US not to block the acquisition from closing, Microsoft announced a deal with the UK’s Competition and Markets Authority (CMA) to suspend litigation over the merger. The move is intended to give both sides time to reach agreement on how the acquisition might be altered to address competition concerns in that country.

    “The recent decision in the U.S. and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming,” a company spokesperson said. “Given global regulatory approvals and the companies’ confidence that CMA now recognizes there are remedies available to meet their concerns in the UK, the Activision Blizzard and Microsoft boards of directors have authorized the companies not to terminate the deal until after October 18. We’re confident in our next steps and that our deal will quickly close.”

    In a memo to employees, Activision CEO Bobby Kotick thanked staff for their patience.

    “I know many of you have questions about our merger with Microsoft,” Kotick wrote. “I am happy to share that based on our continued confidence in closing our deal, the Activision Blizzard and Microsoft boards have mutually agreed not to terminate the deal until after October 18.”

    Kotick added: “This merger is great for players, workers, and our business, and it will create opportunities to compete against companies with large talent pools, strong IP and complete control of their markets. Our merger is cleared to close in over 40 countries already, and we remain confident in resolving any remaining regulatory concerns in the UK.”

    In a memo to employees, Microsoft’s Xbox head Phil Spencer reiterated his hopes of bringing “more games to more players everywhere.”

    “While we can technically close in the United States due to recent legal developments, this extension gives us additional time to resolve the remaining regulatory concerns in the UK,” Spencer wrote in his email.

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

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

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    New York
    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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

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    CNN
     — 

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

    The answer: probably other big American tech platforms.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  • Federal judge rules Google tried to ‘hide the ball’ by deleting chat logs in a big antitrust case | CNN Business

    Federal judge rules Google tried to ‘hide the ball’ by deleting chat logs in a big antitrust case | CNN Business

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    Washington
    CNN
     — 

    Google intentionally sought to “hide the ball” in a high-profile antitrust case by automatically deleting employee chat messages that could have been used as evidence in the suit, a federal judge ruled Tuesday, dealing a blow to the tech giant.

    The ruling condemns Google’s document preservation practices and their impact on litigation, which could have a broader impact as the company defends a range of suits on multiple fronts.

    Google will not face immediate sanctions for its missteps apart from having to cover the legal fees that plaintiffs incurred in bringing the sanctions motion, wrote Judge James Donato in his order. A non-monetary penalty could still be imposed following further court proceedings. But Donato repeatedly criticized Google this week for trying to keep sensitive chat logs out of the record.

    “The Court concludes that Google intended to subvert the discovery process, and that Chat evidence was ‘lost with the intent to prevent its use in litigation’ and ‘with the intent to deprive another party of the information’s use in the litigation,’” Donato wrote.

    In what Donato described as a “fundamental problem,” Google appeared to turn a blind eye to employees’ liberal use of a chat feature that deletes the logs after 24 hours, according to the ruling. The feature enabled Google employees to have conversations about topics relevant to its app store practices — and the topic of the lawsuit — with greater confidence the messages would not be used in court. Employees were also given the discretion to determine for themselves what constituted conversations that needed to be preserved, Donato wrote.

    That was “in sharp contrast” to how Google automatically preserves company emails that are subject to a litigation hold, he added, saying that Google omitted any mention of its practices surrounding chats until it was specifically forced to address the matter by the plaintiffs’ sanctions motion.

    The Justice Department has filed a similar sanctions motion against Google in an ongoing antitrust suit over Google’s search business. Though that case is unfolding in a different federal court, Donato’s ruling Tuesday could give other courts more ammunition to reach the same conclusion.

    In a statement, Google said it has endeavored to meet its discovery obligations.

    “Our teams have conscientiously worked, for years, to respond to Epic and the state AGs’ discovery requests and we have produced over three million documents, including thousands of chats,” said a Google spokexperson. “We’ll continue to show the court how choice, security, and openness are built into Android and Google Play.”

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  • Warren Buffett gives reason for surprise sale of stake in Taiwan’s TSMC | CNN Business

    Warren Buffett gives reason for surprise sale of stake in Taiwan’s TSMC | CNN Business

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    Hong Kong
    CNN
     — 

    Warren Buffett says geopolitical tensions were “a consideration” in the decision to sell most of Berkshire Hathaway’s shares in global chip giant TSMC, which is based in Taiwan.

    The 92-year-old “Oracle of Omaha” shed light on the investment call in a Tuesday interview with Japanese news agency Nikkei. He was quoted as sayiing that TSMC was a well-managed company but that Berkshire had “better places” to deploy its capital.

    In February, Berkshire Hathaway

    (BRKA)     revealed that it had sold 86% of its shares in TSMC, which were purchased for $4.1 billion just months before.

    The quick sale was considered unusual because the billionaire is known for making longer term bets. The size of the purchase suggested that the initial purchase was most likely made personally by Buffett himself, rather than one of his portfolio managers, Reuters reported.

    TSMC is considered a national treasure in Taiwan and supplies semiconductors to tech giants including Apple

    (AAPL)     and Qualcomm

    (QCOM)    . It mass produces the most advanced semiconductors in the world, components that are vital to the smooth running of everything from smartphones to washing machines.

    The company is perceived as being so valuable to the global economy, as well as to China — which claims Taiwan as its own territory despite having never controlled it — that it is sometimes even referred to as forming part of a “silicon shield” against a potential military invasion by Beijing.

    TSMC’s presence is seen as providing a strong incentive to the West to defend Taiwan against any attempt by China to take it by force.

    This week, tensions soared across the Taiwan Strait after China simulated “joint precision strikes” on the island during a series of military exercises.

    Beijing launched the drills on Saturday, a day after Taiwan’s President Tsai Ing-wen returned from a 10-day visit to Central America and the United States where she met US House Speaker Kevin McCarthy.

    Chinese officials described the drills as “a serious warning against the Taiwan separatist forces’ collusion with external forces, and a necessary move to defend national sovereignty and territorial integrity.”

    Beijing conducted similar large-scale military exercises around Taiwan last August, after then-US House Speaker Nancy Pelosi visited the island.

    Taiwan and China have been governed separately since the end of a civil war more than seven decades ago, in which the defeated Nationalists fled to Taipei.

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  • Google-parent stock drops on fears it could lose search market share to AI-powered rivals | CNN Business

    Google-parent stock drops on fears it could lose search market share to AI-powered rivals | CNN Business

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    CNN
     — 

    Shares of Google-parent Alphabet fell more than 3% in early trading Monday after a report sparked concerns that its core search engine could lose market share to AI-powered rivals, including Microsoft’s Bing.

    Last month, Google employees learned that Samsung was weighing making Bing the default search engine on its devices instead of Google’s search engine, prompting a “panic” inside the company, according to a report from the New York Times, citing internal messages and documents. (CNN has not reviewed the material.)

    In an effort to address the heightened competition, Google is said to be developing a new AI-powered search engine called Project “Magi,” according to the Times. The company, which reportedly has about 160 people working on the project, aims to change the way results appear in Google Search and will include an AI chat tool available to answer questions. The project is expected to be unveiled to the public next month, according to the report.

    In a statement sent to CNN, Google spokesperson Lara Levin said the company has been using AI for years to “improve the quality of our results” and “offer entirely new ways to search,” including with a feature rolled out last year that lets users search by combining images and words.

    “We’ve done so in a responsible and helpful way that maintains the high bar we set for delivering quality information,” Levin said. “Not every brainstorm deck or product idea leads to a launch, but as we’ve said before, we’re excited about bringing new AI-powered features to Search, and will share more details soon.”

    Samsung did not immediately respond to a request for comment.

    Google’s search engine has dominated the market for two decades. But the viral success of ChatGPT, which can generate compelling written responses to user prompts, appeared to put Google on defense for the first time in years.

    In March, Google began opening up access to Bard, its new AI chatbot tool that directly competes with ChatGPT and promises to help users outline and write essay drafts, plan a friend’s baby shower, and get lunch ideas based on what’s in the fridge.

    At an event in February, a Google executive also said the company will bring “the magic of generative AI” directly into its core search product and use artificial intelligence to pave the way for the “next frontier of our information products.”

    Microsoft, meanwhile, has invested in and partnered with OpenAI, the company behind ChatGPT, to deploy similar technology in Bing and other productivity tools. Other tech companies, including Meta, Baidu and IBM, as well as a slew of startups, are racing to develop and deploy AI-powered tools.

    But tech companies face risks in embracing this technology, which is known to make mistakes and “hallucinate” responses. That’s particularly true when it comes to search engines, a product that many use to find accurate and reliable information.

    Google was called out after a demo of Bard provided an inaccurate response to a question about a telescope. Shares of Google’s parent company Alphabet fell 7.7% that day, wiping $100 billion off its market value.

    Microsoft’s Bing AI demo was also called out for several errors, including an apparent failure to differentiate between the types of vacuums and even made up information about certain products.

    In an interview with 60 Minutes that aired on Sunday, Google and Alphabet CEO Sundar Pichai stressed the need for companies to “be responsible in each step along the way” as they build and release AI tools.

    For Google, he said, that means allowing time for “user feedback” and making sure the company “can develop more robust safety layers before we build, before we deploy more capable models.”

    He also expressed his belief that these AI tools will ultimately have broad impacts on businesses, professions and society.

    “This is going to impact every product across every company and so that’s, that’s why I think it’s a very, very profound technology,” he said. “And so, we are just in early days.”

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  • Snapchat rolls out chatbot powered by ChatGPT to all users | CNN Business

    Snapchat rolls out chatbot powered by ChatGPT to all users | CNN Business

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    CNN
     — 

    Snapchat is about to give new meaning to the “chat” part of its name.

    Snap, the company behind Snapchat, announced on Wednesday that its customizable My AI chatbot, is now accessible to all users within the app. The feature, which is powered by the viral AI chatbot ChatGPT, was previously only available to paying Snapchat+ subscribers.

    The tool offers recommendations, answers questions, helps users make plans and can write a haiku in seconds, according to the company. It can be brought into conversation with friends when it’s mentioned with “@MyAI.” Users can also give it a name and design a custom Bitmoji avatar for it to personalize it more.

    The move comes more than a month after ChatGPT creator OpenAI opened up access to its chatbot to third-party businesses. Snap, Instacart and tutor app Quizlet were among the early partners experimenting with adding ChatGPT.

    Since its public release in November 2022, ChatGPT has stunned many users with its impressive ability to generate original essays, stories and song lyrics in response to user prompts. The initial wave of attention on the tool helped renew an arms race among tech companies to develop and deploy similar AI tools in their products.

    The initial batch of companies tapping into ChatGPT’s functionality each have slightly different visions for how to incorporate it. Taken together, however, these services may test just how useful AI chatbots can really be in our everyday life and how much people want to interact with them for customer service and other uses across their favorite apps.

    Adding ChatGPT features also may come with some risks. The tool, which is trained on vast troves of data online, can spread inaccurate information and has the potential to respond to users in ways they might find inappropriate.

    In a blog post on Wednesday, Snap acknowledged “My AI is far from perfect but we’ve made a lot of progress.”

    It said, for example, about 99.5% of My AI responses conform to its community guidelines. Snap said it has made changes to “help protect against responses that could be inappropriate or harmful.” The company also said it has added moderation technology and included the new feature to its in-app parental tools.

    “We will continue to use these early learnings to make AI a more safe, fun, and useful experience, and we’re eager to hear your thoughts,” the company said.

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  • Justice Department challenges Tennessee’s ban on gender-affirming care for minors | CNN Politics

    Justice Department challenges Tennessee’s ban on gender-affirming care for minors | CNN Politics

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    CNN
     — 

    The Justice Department on Wednesday filed a complaint challenging a recently enacted Tennessee bill that prohibits gender-affirming care for minors, saying it “denies necessary medical care to youth based solely on who they are.”

    DOJ argues in its complaint that the legislation violates the Fourteenth Amendment’s Equal Protection Clause by discriminating on the basis of both sex and transgender status and asks the court to issue an immediate order to block the law from taking effect on July 1.

    “SB 1 makes it unlawful to provide or offer to provide certain types of medical care for transgender minors with diagnosed gender dysphoria. SB 1’s blanket ban prohibits potential treatment options that have been recommended by major medical associations for consideration in limited circumstances in accordance with established and comprehensive guidelines and standards of care,” a news release from the department states. “By denying only transgender youth access to these forms of medically necessary care while allowing non-transgender minors access to the same or similar procedures, SB 1 discriminates against transgender youth.”

    In a statement to CNN, Gov. Bill Lee said, “Tennessee is committed to protecting children from permanent, life-altering decisions. This is federal overreach at its worst, and we will work with Attorney General Skrmetti to push back in court and stand up for children.”

    Senate Bill 0001, signed into law by the Republican governor last month, prohibits health care providers “from performing on a minor or administering to a minor a medical procedure if the performance or administration of the procedure is for the purpose of enabling a minor to identify with, or live as, a purported identity inconsistent with the minor’s sex.”

    The legislation specifies that minors who receive care cannot be held liable but lawsuits could be brought against their parents “if the parent of the minor consented to the conduct that constituted the violation on behalf of the minor.” It also grants the attorney general the authority to fine health care professionals who provide the care with a civil penalty of $25,000 per violation.

    Gender-affirming care that began prior to July 1 is not considered a violation “provided that the treating physician must make a written certification that ending the medical procedure would be harmful to the minor,” though access to such care must conclude by March 31, 2024. The legislation expresses concern over long-term outcomes and questions whether minors are capable of making such consequential decisions.

    Major medical associations agree that gender-affirming care is clinically appropriate for children and adults with gender dysphoria, which, according to the American Psychiatric Association, is psychological distress that may result when a person’s gender identity and sex assigned at birth do not align.

    Though the care is highly individualized, some children may decide to use reversible puberty suppression therapy. This part of the process may also include hormone therapy that can lead to gender-affirming physical change. Surgical interventions, however, are not typically done on children and many health care providers do not offer them to minors.

    US Attorney for the Middle District of Tennessee Henry Leventis said in a statement that SB 1 violates the constitutional rights of the state’s “most vulnerable victims.”

    “Left unchallenged, it would prohibit transgender children from receiving health care that their medical providers and their parents have determined to be medically necessary. In doing so, the law seeks to substitute the judgment of trained medical professionals and parents with that of elected officials and codifies discrimination against children who already face far too many obstacles,” Leventis said.

    Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said in the news release that “no person should be denied access to necessary medical care just because of their transgender status.”

    “The right to consider your health and medically-approved treatment options with your family and doctors is a right that everyone should have, including transgender children, who are especially vulnerable to serious risks of depression, anxiety and suicide,” Clarke said.

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  • Russia’s jamming of US-provided rocket systems complicates Ukraine’s war effort | CNN Politics

    Russia’s jamming of US-provided rocket systems complicates Ukraine’s war effort | CNN Politics

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    Washington
    CNN
     — 

    Russia has been thwarting US-made mobile rocket systems in Ukraine more frequently in recent months, using electronic jammers to throw off its GPS guided targeting system to cause rockets to miss their targets, multiple people briefed on the matter told CNN.

    Ukrainian military officials, with the US’ help, have had to come up with a variety of different workarounds as it continues to use the High Mobility Artillery Rocket System (HIMARS) which has been perhaps the most revered and feared piece of weaponry in Ukraine’s fight.

    The medium-range rocket systems were hailed as a game changer in the conflict and have played a key role since the moment they arrived in Ukraine last summer, including in last year’s offensive that allowed Ukraine to take back significant swaths of territory from Russia.

    But in recent months, the systems have been rendered increasingly less effective by the Russians’ intensive blocking, five US, British and Ukrainian sources tell CNN, forcing US and Ukrainian officials to find ways to tweak the HIMARS’ software to counter the evolving Russian jamming efforts.

    “It is a constant cat-and-mouse game” of finding a countermeasure to the jamming, a Pentagon official said, only to then have the Russians counteract that countermeasure. And it is not clear how sustainable that game is in the long term.

    With a major Ukrainian counteroffensive expected to start very soon and Ukraine’s reliance on HIMARS, solutions are even more of a priority so that Ukrainian troops can make significant headway.

    “It’s one thing to be able to hold the Russians off where they are right now. It’s another thing to drive them out,” retired US Army Brig. Gen. Steven Anderson told CNN. “They’re dug in, they’ve been there for a year.”

    HIMARS “have been extremely important,” he added. “They have to be able to keep those HIMARS in the game and keep using them to be able to make effective deep strikes.”

    Ukraine has received 18 American HIMARS to date and the US has committed to sending 20 more. Other NATO allies have donated 10 Multiple Launch Rocket Systems, according to the State Department.

    The routine announcements from the Biden administration of hundreds of millions of dollars of military aid for Ukraine, including one on Wednesday, regularly include HIMARS munitions, called GMLRs, as a top item, though notably the exact number is not revealed.

    The US has also helped the Ukrainians locate the Russian jammers and destroy them – a “high priority” effort, according to a secret Pentagon document that was part of a trove allegedly leaked by Airman Jack Teixeira.

    “We will continue to advocate/recommend that those jammers are disrupted/destroyed,” the document says, “to the maximum extent possible.”

    GPS jamming can affect other “smart” US munitions like the precision-guided Excalibur artillery shells fired from Howitzers and air-dropped bombs called JDAMs. The leaked Pentagon document described the JDAMS as being particularly susceptible to the disruption.

    A US official confirmed that the US has been advising the Ukrainians on how to identify and destroy Russian jammers since there are a limited number of ways to modify HIMARS and their rockets.

    A senior Pentagon official downplayed the impact of the interference, telling CNN that on Monday Ukrainian forces fired 18 rockets without issue, about the daily rate of the past few weeks. The official declined to comment on the broader impact of the jamming. HIMARS are manufactured by Lockheed Martin, which deferred questions on jamming to the US government.

    Electronic warfare is carried out by both sides, up and down the front line where there is heavy drone activity used for surveillance and in partnership with artillery targeting. The hardware can also be mounted on or around whatever might be targeted.

    Depending on the location and strength of the jamming, a rocket can still launch and result in a successful strike with significant damage. In addition to GPS guidance, the rockets have inertial navigation systems that are not susceptible and remain accurate, though not as precise as when guided by GPS coordinates.

    Widespread Russian jamming can have drawbacks for their own forces as well, impacting their ability to communicate and operate.

    But even when they do function, the HIMARS have increasingly been missing targets, said one Ukrainian source briefed by drone operators on the frontlines.

    One drone pilot on the Eastern front described the jamming of the mobile HIMARS as “significant,” according to the source, something he hadn’t seen in his area before last November, several months after the HIMARS first arrived in Ukraine at the beginning of the summer.

    Another drone operator in the southern Kherson region claimed to the source that the effectiveness of HIMARS was down dramatically while cautioning that they’re still very necessary and relied on but no longer as dominant as they once were.

    For nearly a year, the HIMARS system has been the longest-range rocket system Ukraine has, allowing troops to fire up to six rockets in quick succession at Russian positions as far as 50 miles away. With an accuracy of around 10 feet, the 200-pound warheads have taken out logistics hubs, ammunition depots, command posts and communication nodes, among other targets.

    They were also instrumental in helping Ukraine retake significant amounts of territory in the south and northeast last fall, and as of February, Ukraine had expended approximately 9,500 HIMARS rockets, according to a daily update from the time reviewed by CNN.

    A US official familiar with the workarounds said they include updates to the software on both the targeting system software as well the rockets.

    The senior Pentagon official described it as: “constant tweaking to get them to stay effective,” adding that updates had been made as recently as this week.

    “If their jamming gets more sophisticated, then your countermeasures have to get more sophisticated,” a British official agreed.

    Russia’s use of electronic warfare has not been nearly as widespread as expected when Russia first invaded but they have made use of it since the beginning of the war. It’s a routine part of modern warfare that can be cheap and easy to implement. It’s expected, so the focus is on ways to “dilute” the impact, the official said.

    But with Russian units largely stalled on the Ukrainian frontlines and stuck in defensive positions, Russian forces have made increasing use of their jamming systems to counteract the HIMARS, sources said.

    A separate but related problem for Ukraine is that the Russians have been moving some of their equipment further back and out of reach of the HIMARS systems, which have a range of about 50 miles.

    While the rocket systems are capable of firing longer-range missiles called ATACMS – which can reach targets over 185 miles away – the US has resisted providing them to Ukraine both because the missiles are in limited supply and because the US is worried Russia would see them as too provocative.

    The British official acknowledged that since HIMARS were first introduced, the requirements, the training and supplementary equipment has changed as Russia’s electronic interference has evolved.

    “Jamming is like the weather or the terrain, it’s something that happens that you have to deal with,” the official said. Still, he added, HIMARS remains a “highly useful piece of kit.”

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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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