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Tag: iab-business

  • ‘Where is the phone?’ Huawei keeps quiet about Mate 60 Pro but takes aim at Tesla | CNN Business

    ‘Where is the phone?’ Huawei keeps quiet about Mate 60 Pro but takes aim at Tesla | CNN Business

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


    Hong Kong
    CNN
     — 

    Huawei has disappointed legions of fans — and US officials — eager to know more about its Mate 60 Pro smartphone, which has quickly become a symbol of the tech rivalry between the United States and China since it went on sale last month.

    Huawei’s consumer chief, Richard Yu, showed off a slew of new products including a tablet, smartwatch, earphones and even a challenge to Tesla (TSLA) on Monday, without going into detail about its flagship device, which has provoked calls in Washington for more sanctions against the Chinese tech and mobile giant.

    The United States has spent years trying to hobble Huawei’s ability to access the most advanced semiconductors, and the unveiling of its 5G phone in August has taken Western observers by surprise.

    The launch event became the most discussed topic on Chinese social network Weibo, racking up six billion views and 1.6 million posts. Meanwhile, a hashtag titled “#HuaweiConferenceWithoutMentioningMobilePhones,” trended on Weibo, with 24.5 million views.

    “You’re telling me there will be no talk about the phone?” one user wrote on the social network.

    “Where is the phone?” said another.

    Huawei quietly started selling the Mate 60 Pro in August, without a formal launch event or sharing full technical specifications.

    Yu said onstage that the company was “working overtime” to urgently produce devices in the Mate 60 series “to allow more people to buy and use our products.”

    But “today, we will not introduce” those devices, he added.

    At one point, Huawei whetted viewers’ appetite by unveiling a new premium collection called Ultimate Design, introduced by Hong Kong singer and actor Andy Lau.

    The line consists of a luxury smartphone and smartwatch. Few details were released, though the company said the watch was made using bars of real gold — giving it a hefty price tag of 21,999 Chinese yuan ($3,009).

    Ben Sin, an independent tech reviewer, said he was “baffled” as to why Huawei did not discuss its smartphones.

    The company “knows everyone wants to know more about the chip [in the Mate 60 Pro], so them not talking about it is almost like defiance,” he said.

    Analysts who have examined the handset have said it includes a 5G chip, suggesting Huawei may have found a way to overcome American export controls.

    Huawei, formerly the world’s second largest maker of smartphones, has been attempting a comeback in China’s smartphone market after being hit by US export restrictions, which were first imposed in 2019.

    The company’s woes later forced it to sell off its budget mobile brand, Honor, leaving it in bad shape.

    But it is starting to find its way back.

    The firm’s smartphone sales grew in China by 58% in the second quarter of this year, compared to the same period last year, according to Counterpoint Research. Its share of the Chinese market rose from 6.9% to 11.3% over that period.

    Ivan Lam, a senior analyst at Counterpoint, said Huawei benefited from “its high brand exposure to” wealthy Chinese consumers. Because of this, Huawei’s market share in China is expected to further grow in 2024, he added.

    Huawei’s new phone is a boon for the company and may even pose a challenge to Apple’s (AAPL) market share in China, Lam said.

    The Shenzhen-based company has seen a recent “surge in sales” for its Mate 60 series, with weekly sales almost tripling to 225,000 units, according to Counterpoint.

    Yu demonstrated a number of other new products, starting with the latest version of its MatePad Pro, describing it as the lightest and thinnest tablet of its kind in the world. He said the device had been 10 years in the making.

    In addition, the company unveiled a new smart TV, wireless earphones and other gadgets.

    Huawei also took an aggressive swipe at Tesla, saying it would release its first sedan, the Luxeed S7, in November. The car will surpass Tesla’s Model S “in every specification,” said Yu.

    The company plans to release the Aito M9, an SUV, in December. Huawei has partnered with Chinese automakers to produce the two previously announced electric vehicles.

    Yu also announced Huawei was “ready to launch” an updated operating system, HarmonyOS NEXT.

    The system will include “native applications,” Yu said, without elaborating.

    Speculation has mounted that Huawei may be building an operating system that won’t be compatible with any Android apps.

    Huawei did not immediately respond to a request for comment on the matter.

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  • Nokia says it will cut up to 14,000 jobs | CNN Business

    Nokia says it will cut up to 14,000 jobs | CNN Business

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    Hong Kong
    CNN
     — 

    Nokia will slash up to 14,000 jobs in a major cost-cutting drive to address a “weaker” market environment, it said in a statement on Thursday.

    The Finnish telecom giant, a major provider of 5G equipment that employs 86,000 people, announced the move as part of a wider restructuring that will lower its headcount to between 72,000 and 77,000.

    The move will help the company reduce staffing expenses by 10% to 15%, and save at least €400 million ($421.4 million) in 2024 alone, the company projected.

    Overall, it said the reductions are expected to trim Nokia’s costs by up to €1.2 billion (nearly $1.3 billion) cumulatively by the end of 2026. Nokia (NOK) said it would “act quickly” to make changes.

    “The most difficult business decisions to make are the ones that impact our people,” CEO Pekka Lundmark said in the statement. “We have immensely talented employees at Nokia and we will support everyone that is affected by this process.”

    The announcement came on the same day that Nokia reported worse-than-expected results. It said sales in the third quarter had fallen 15% compared to the same period a year ago, as “macroeconomic uncertainty and higher interest rates continue to pressure operator spending.”

    Mobile network sales fell 19% in the third quarter compared to the previous year, the company added, due to a slowdown in the pace of 5G deployment in markets such as India.

    This week, Swedish rival Ericsson also warned that sales in the second half of 2023 would likely come in lower than usual, echoing Nokia’s remarks of a “challenging environment and macroeconomic uncertainty.”

    But Nokia has maintained its outlook for 2023, forecasting between €23.2 billion and €24.6 billion ($24.4 billion and $25.9 billion) in sales for the full year.

    “We continue to believe in the mid to long term attractiveness of our markets,” Lundmark said.

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  • The big bottleneck for AI: a shortage of powerful chips | CNN Business

    The big bottleneck for AI: a shortage of powerful chips | CNN Business

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    CNN
     — 

    The crushing demand for AI has also revealed the limits of the global supply chain for powerful chips used to develop and field AI models.

    The continuing chip crunch has affected businesses large and small, including some of the AI industry’s leading platforms and may not meaningfully improve for at least a year or more, according to industry analysts.

    The latest sign of a potentially extended shortage in AI chips came in Microsoft’s annual report recently. The report identifies, for the first time, the availability of graphics processing units (GPUs) as a possible risk factor for investors.

    GPUs are a critical type of hardware that helps run the countless calculations involved in training and deploying artificial intelligence algorithms.

    “We continue to identify and evaluate opportunities to expand our datacenter locations and increase our server capacity to meet the evolving needs of our customers, particularly given the growing demand for AI services,” Microsoft wrote. “Our datacenters depend on the availability of permitted and buildable land, predictable energy, networking supplies, and servers, including graphics processing units (‘GPUs’) and other components.”

    Microsoft’s nod to GPUs highlights how access to computing power serves as a critical bottleneck for AI. The issue directly affects companies that are building AI tools and products, and indirectly affects businesses and end-users who hope to apply the technology for their own purposes.

    OpenAI CEO Sam Altman, testifying before the US Senate in May, suggested that the company’s chatbot tool was struggling to keep up with the number of requests users were throwing at it.

    “We’re so short on GPUs, the less people that use the tool, the better,” Altman said. An OpenAI spokesperson later told CNN the company is committed to ensuring enough capacity for users.

    The problem may sound reminiscent of the pandemic-era shortages in popular consumer electronics that saw gaming enthusiasts paying substantially inflated prices for game consoles and PC graphics cards. At the time, manufacturing delays, a lack of labor, disruptions to global shipping and persistent competing demand from cryptocurrency miners contributed to the scarce supply of GPUs, spurring a cottage industry of deal-tracking tech to help ordinary consumers find what they needed.

    But the current shortage is much different in kind, industry experts say. Instead of a disruption to supplies of consumer-focused GPUs, the ongoing shortage reflects the sudden, exploding demand for ultra high-end GPUs meant for advanced work such as the training and use of AI models.

    Production of those GPUs is at capacity, but the rush of demand has overwhelmed what few sources of supply there are.

    There is a “huge sucking sound” coming from businesses representing the unrivaled demand for AI, said Raj Joshi, a senior vice president at Moody’s Investors Service who tracks the chips industry.

    “Nobody could’ve modeled how fast or how much this demand is going to increase,” Joshi said. “I don’t think the industry was ready for this kind of surge in demand.”

    One company in particular stands to benefit massively from the AI surge: Nvidia, the trillion-dollar chipmaker that according to industry estimates controls 84% of the market for discrete GPUs. In a research note published in May, Joshi estimated that Nvidia would experience “unparalleled” revenue growth in the coming quarters, with revenue from its data center business outstripping that of rivals Intel and AMD combined.

    In its May earnings call, Nvidia said it had “procured substantially higher supply for the second half of the year” to meet the rising demand for AI chips. The company declined to comment on Tuesday, citing its latest pre-earnings quiet period.

    AMD, meanwhile, said Tuesday it expects to unveil its answer to Nvidia’s AI GPUs closer to the end of the year.

    “There’s very strong customer interest across the board in our AI solutions,” said AMD CEO Lisa Su on the company’s earnings call. “There is a lot more to do, but I would say the progress that we’ve made has been significant.”

    Compounding the issue is that GPU-makers themselves cannot get enough of a key input from their own suppliers, said Sid Sheth, founder and CEO of AI startup d-Matrix. The technology, known as a silicon interposer, works by marrying standalone computing chips with high-bandwidth memory chips and is necessary for completing GPUs.

    The Biden administration has made increasing US chip manufacturing capacity a priority; the passage of the CHIPS Act last year is set to provide billions in funding for the domestic chip industry and for chip research and development. But those investments are aimed at a broad swath of chip technologies and not specifically targeted at boosting GPU production.

    The chip shortage is expected to ease as more manufacturing comes online and as competitors to Nvidia also expand their offerings. But that could take as long as two to three years, some industry experts say.

    In the meantime, the shortage could force companies to find creative ways around the problem. Companies that can’t get their hands on enough chips are now having to be more efficient, said Sheth.

    “Necessity is the mother of invention, right?” Sheth said. “So now that people don’t have access to unlimited amounts of computing power, they are finding resourceful ways of using whatever they have in a much smarter way.”

    That could include, for example, using smaller AI models that may be easier and less computationally intensive to train than a massive model, or developing new ways of doing computation that don’t rely as heavily on traditional CPUs and GPUs, Sheth said.

    “Net-net, this is going to be a blessing in disguise,” he added.

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  • Microsoft gives ground on streaming in bid to remove UK block on Activision deal | CNN Business

    Microsoft gives ground on streaming in bid to remove UK block on Activision deal | CNN Business

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    London
    CNN
     — 

    Microsoft has made a major concession to UK authorities in a bid to remove the last remaining regulatory obstacle to its huge takeover of Activision Blizzard.

    The companies have submitted a new proposal to the UK antitrust watchdog — the only regulator worldwide standing in the way of the $69 billion deal — that would see Activision’s (ATVI) cloud streaming rights outside the European Union and three other European countries sold to a rival, Ubisoft Entertainment. Microsoft President Brad Smith said in a blog post Tuesday that the companies believe the new proposal “presents a substantially different transaction” for the CMA to consider than its previous merger agreement.

    “We believe that this development is positive for players, the progression of the cloud game streaming market, and for the growth of our industry,” Smith said.

    The restructured deal, announced by the UK Competition and Markets Authority Tuesday, follows a decision by the CMA to block the acquisition on its original terms. That move put it at odds with EU regulators, which approved the plan in May. A US federal court also said in July that it would not block the deal from closing.

    CMA chief executive Sarah Cardell said the regulator would now consider the new proposal.

    “Our goal has not changed — any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.”

    Under the restructured deal, Ubisoft — a French video game developer — will be able to license out Activision’s content to any cloud gaming provider outside the European Economic Area, including in the United Kingdom. Shares in Ubisoft jumped 7% in Paris Tuesday.

    “This will allow gamers to access Activision’s games in different ways, including through cloud-based multigame subscription services,” Cardell said.

    Microsoft and Activision agreed last month to extend their merger deadline by three months to October 18, to allow more time to come to an agreement with the CMA. October 18 is now also the statutory deadline for a CMA decision on the new merger proposal, and Microsoft said it expects the agency’s review process to be completed ahead of that date.

    Microsoft (MSFT) announced the planned acquisition of Activision early last year. The transaction was valued at $69 billion at the time, making it one of the tech industry’s largest deals.

    Activision Blizzard is one of the world’s biggest video game developers, producing games such as “Candy Crush,” “Call of Duty,” “World of Warcraft” and “Overwatch.”

    –CNN’s Clare Duffy contributed to this report.

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  • X will allow political ads again and hire for safety and election teams ahead of 2024 elections | CNN Business

    X will allow political ads again and hire for safety and election teams ahead of 2024 elections | CNN Business

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    CNN
     — 

    X, the platform formerly known as Twitter, is hiring for its safety and elections teams ahead of the 2024 US presidential election and will again allow political ads for the first time since 2019.

    “We’re currently expanding our safety and elections teams to focus on combating manipulation, surfacing inauthentic accounts and closely monitoring the platform for emerging threats,” the company said in a blog post Tuesday, in which it also laid out its approach to political discourse and preventing voter manipulation as campaign season ramps up.

    The announcement comes after months of changes to the platform and how it handles content moderation after Elon Musk took over the company last fall. Shortly after his takeover, Musk laid off huge swaths of the company’s staff, including many employees responsible for safety, platform manipulation and election policy. (Musk later boasted about having cut roughly 80% of the company’s staff.)

    It also follows criticism by Musk about how the platform’s previous leadership handled political discourse, including claims of censorship.

    According to X’s Tuesday blog post, the platform will continue to apply its civic integrity policy — which prohibits the use of the platform for “manipulating or interfering in elections,” including posting content that could mislead people about how, when or where to participate in civic processes such as voting — for a “limited period of time before and during an election.”

    “We’re updating this policy to make sure we strike the right balance between tackling the most harmful types of content—those that could intimidate or deceive people into surrendering their right to participate in a civic process—and not censoring political debate,” X said. The platform will add public labels to posts that violate the civic integrity policy and let users know when reach has been restricted on such content.

    The practices laid out in X’s Tuesday post are not all that different from how the platform handled misinformation related to elections under its previous leadership. Ahead of the 2022 midterms, the platform said it would label and demote, for example, false claims about how to cast a ballot or the outcomes of a race.

    X added that it is following through on a commitment to allow expanded political advertising. The company began taking steps in that direction in January, when it relaxed a ban on issue advertising and promised that further changes to political ads would be coming. Twitter initially implemented restrictions on political and issue advertising in 2019 amid concerns that politicians could seek to target users with false or misleading information.

    On Tuesday, X said promoted political posts would again be allowed and that the ads would be subject to certain policies.

    “This will include prohibiting the promotion of false or misleading content,” X said in the blog post, “including false or misleading information intended to undermine public confidence in an election, while seeking to preserve free and open political discourse.”

    The blog post added that X will create a “global advertising transparency center” that will allow users to review political ads — a capability that is required under Europe’s new Digital Services Act, a law that X and other very large tech platforms were expected to comply with as of last week.

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

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

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    New York
    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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  • Dubai to start robotaxi trials next month in major autonomous push | CNN Business

    Dubai to start robotaxi trials next month in major autonomous push | CNN Business

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    Editor’s Note: A version of this story appears in CNN’s Meanwhile in the Middle East newsletter, a three-times-a-week look inside the region’s biggest stories. Sign up here.


    Abu Dhabi, UAE
    CNN
     — 

    Dubai is rolling out its first round of robotaxis next month, as a part of a plan to alleviate congestion and accidents.

    Five fully autonomous electric taxis, operated by a General Motors subsidiary called Cruise, will begin test driving on an 8km (5 mile) stretch in the upscale Jumeirah district of the United Arab Emirates city, according to Ahmed Bahrozyan, the CEO of Dubai’s Roads and Transport Authority (RTA).

    Dubai hopes to become the first Middle Eastern city to introduce driverless taxis, Bahrozyan said. Autonomous taxis currently operate in several cities around the world, mostly in the US and China.

    Cruise operates commercial robotaxis in US cities like San Francisco, but Dubai would be the first launch of the cars outside the US, Bahrozyan said.

    “We are doing our own set of tests and trials in Dubai… every city has its own characteristics,” Bahrozyan said in an interview with CNN. “We have weather conditions that are certainly different than the US.”

    RTA plans to roll out 4,000 self-driving taxis by 2030, adding to the fleet of 12,000 traditional taxis in the city. Rides are expected to be slightly more expensive than an ordinary taxi but in the same price range as a private car like Uber.

    Cruise entered a contract with the RTA for 15 years, and after this period the taxi market may open up to competitors. Bahroyzyan said he foresees autonomous vehicles eventually making up the majority of the Middle East tourist hub’s taxi fleet.

    A year after GM’s Cruise robotaxis were launched in California, the company was forced to cut its fleet in half in the state following a series of collisions. The collisions outlined the potential challenges of driverless cars.

    Bahroyzyan said there will be “zero compromise on safety.”

    Dubai issued a law in April to regulate autonomous vehicles, setting benchmarks for technical, operational and safety aspects of cars. Selling and buying autonomous cars was also regulated.

    WeRide, a Chinese autonomous car technology company began trialing robotaxis in the UAE’s capital, Abu Dhabi, in 2022.

    In July, the UAE granted WeRide a license to trial all its vehicles, from robobuses to robosweepers, but the company began testing certain routes a year prior.

    The Middle East is a “key focus area” for driverless cars and WeRide said it hopes to deepen its presence in the region. WeRide also has a collaboration with the Saudi Artificial Intelligence Company to develop a robobus route.

    Saudi’s Transport General Authority introduced self-driving buses during the 2023 Hajj season in July, shuttling pilgrims in Mecca, according to local media.

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  • New York AG accuses crypto firms of deceiving investors in $1 billion fraud | CNN Business

    New York AG accuses crypto firms of deceiving investors in $1 billion fraud | CNN Business

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    CNN
     — 

    The fallout from the colossal implosion of Sam Bankman-Fried’s crypto business is still rippling through the digital asset industry nearly a year later.

    On Thursday, New York’s attorney general filed a lawsuit against three digital asset firms that were caught up in the collapse of Bankman-Fried’s empire last fall — Gemini Trust, Genesis Global Capital and Digital Currency Group, parent company of Genesis. The lawsuit accused the companies of lying to investors and covering up more than $1 billion in losses.

    The AG’s office said that an investigation found Gemini, the crypto firm founded by Cameron and Tyler Winklevoss, deceived investors about significant risks associated with a lending service it ran jointly with Genesis. The program, called Gemini Earn, marketed itself as a low-risk investment in which customers could lend crypto assets to Genesis while earning interest payments as high as 8%.

    “These cryptocurrency companies lied to investors,” Attorney General Letitia James said in a statement. “And it was middle-class investors who suffered as a result.” At least 29,000 New Yorkers were among the 230,000 investors whose money was lost, James said.

    James’ lawsuit is the latest effort among US officials to crack down on the trillion-dollar crypto industry, which for years has operated in the shadows of traditional financial regulation. Crypto advocates argue that regulators have dragged their feet in establishing guidelines for digital assets, which they believe are distinct from traditional securities like stocks or bonds.

    In the immediate aftermath of the FTX crash, Genesis froze customer redemptions in its lending unit, citing market turmoil. The lending unit later filed for bankruptcy.

    According to the latest lawsuit, Gemini knew that Genesis’ loans were risky and, at one point, “highly concentrated” with Bankman-Fried’s crypto trading house Alameda Research. Bankman-Fried is currently on trial in federal court in New York, where he has pleaded not guilty to seven counts of fraud and conspiracy.

    “Gemini hid the risks of investing with Genesis, and Genesis lied to the public about its losses,” James said.

    The lawsuit also names former Genesis CEO Soichiro “Michael” Moro and Digital Currency Group CEO Barry Silbert.

    Gemini’s owners, the Winklevoss twins, have said Genesis owed more than $900 million to some 340,000 customers using the Earn program.

    The AG’s lawsuit follows another civil action brought by the Securities and Exchange Commission, which in January sued Genesis and Gemini for offering unregistered securities through the Earn product.

    Gemini responded to the latest suit Thursday with a statement on X (formerly Twitter), claiming that Gemini itself was the victim of a “massive fraud.”

    “The NY AG’s lawsuit confirms what we’ve been saying all along” — that Gemini, its customers and other creditors were lied to about Genesis’ finances. But the company said it “wholly” disagrees with the lawsuit.

    “Blaming a victim for being defrauded and lied to makes no sense and we look forward to defending ourselves against this inconsistent position.”

    A Genesis spokesperson said that “while there is no basis for the NYAG’s claims against Genesis, we have been cooperating with all authorities and intend to continue doing so.”

    “Genesis has not violated the law and continues to focus on maximizing recoveries for creditors in its Chapter 11 cases,” the spokesperson added.

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  • Biden’s student loan policies continue to face legal challenges | CNN Politics

    Biden’s student loan policies continue to face legal challenges | CNN Politics

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    CNN
     — 

    Legal challenges are continuing to target some of President Joe Biden’s student loan policies.

    While the president’s major student loan forgiveness program was blocked by the Supreme Court in late June, the Biden administration is also facing lawsuits over some of its other policy changes aimed at making it easier for borrowers to pay back their loans.

    On Monday, the US 5th Circuit Court of Appeals temporarily blocked new provisions that were meant to be implemented in July, which would make it easier for borrowers to get their debts erased when they’re misled or defrauded by their college under a rule known as borrower defense to repayment.

    The rule has been in place for decades. But the lawsuit targets new provisions – including one allowing for automatic debt discharges a year after a college’s closure date and another that bans colleges from requiring borrowers to agree to mandatory arbitration – which are now blocked.

    The emergency injunction request was made by Career Colleges and Schools of Texas, a group of for-profit universities. The appeals court order did not explain the reasoning for the decision but said that the case will be heard on November 6.

    Student loan borrowers may still submit applications for debt relief under the borrower defense rule during this time, but the Department of Education “will not adjudicate or process affected applications under the new regulations while the court’s order is in place,” according to the agency’s website.

    Aaron Ament, president of the nonprofit National Student Legal Defense Network, warned that “countless students are at risk of being taken advantage of by higher ed profiteers” until the protections are restored.

    Meanwhile, in a separate lawsuit filed last week, two conservative groups sued to stop the Biden administration from carrying out a one-time adjustment to some borrowers’ accounts, which was aimed at more accurately counting certain payments made previously under an income-driven repayment plan.

    These plans calculate payments based on a borrower’s income and family size – regardless of the person’s total outstanding debt. Generally, they lower monthly payments to help borrowers avoid defaulting on their loans and wipe away remaining balances after qualifying payments are made for 20 to 25 years.

    What the administration has referred to as “fixes” are expected to result in the cancellation of $39 billion worth of federal student loan debt for 804,000 borrowers, according to the Department of Education.

    The lawsuit, which was filed by the New Civil Liberties Alliance on behalf of the conservative groups Cato Institute and the Mackinac Center for Public Policy, argues that one-time adjustment “is substantively and procedurally unlawful” – similar, it says, to the broader student loan forgiveness program struck down by the Supreme Court.

    The Department of Education announced in July – weeks after the other forgiveness program was blocked – that it would begin to notify the 804,000 borrowers of their forthcoming debt cancellation.

    But the one-time adjustment had been planned for more than a year. First announced in April 2022, the move was meant to help borrowers whose payments were miscounted and were already eligible for debt relief under an income-driven repayment plan.

    The changes followed a Government Accountability Office report that found that the Department of Education had trouble tracking borrowers’ payments and hadn’t done enough to ensure that all eligible borrowers receive the forgiveness to which they are entitled. In fact, 7,700 loans in repayment, or about 11% of loans analyzed, could have potentially already been eligible for forgiveness.

    In a statement sent to CNN, the Department of Education said the lawsuit “is nothing but a desperate attempt from right wing special interests to keep hundreds of thousands of borrowers in debt, even though these borrowers have earned the forgiveness that is promised through income-driven repayment plans.”

    This latest legal challenge does not appear to immediately impact the Biden administration’s new income-driven repayment plan known as SAVE (Saving on a Valuable Education), which launched last week.

    Once the SAVE plan is fully phased in, which is expected to happen next year, some borrowers could see their monthly bills cut in half and remaining debt canceled after making at least 10 years of payments.

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  • GM’s Cruise slashed fleet of robotaxis by 50% in San Francisco after collisions | CNN Business

    GM’s Cruise slashed fleet of robotaxis by 50% in San Francisco after collisions | CNN Business

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    CNN
     — 

    California authorities have asked General Motors to “immediately” take some of its Cruse robotaxis off the road after autonomous vehicles were involved in two collisions – including one with an active fire truck – last week in San Francisco.

    California’s Department of Motor Vehicles confirmed to CNN that it is investigating “recent concerning incidents involving Cruise vehicles in San Francisco.”

    “The DMV is in contact with Cruise and law enforcement officials to determine the facts and requested Cruise to immediately reduce its active fleet of operating vehicles by 50% until the investigation is complete and Cruise takes appropriate corrective actions to improve road safety,” the department said in a statement.

    That means Cruise, which is the self-driving subsidiary of General Motors, can have no more than 50 driverless cars in operation during the day, and 150 in operation at night, according to the department.

    The California DMV said that Cruise has agreed to the request, and a spokesperson from Cruise told CNN that the company is investigating the firetruck crash as well.

    The accidents come less than two weeks after California regulators officially gave the green light for Cruise and competitor Waymo to charge money for robotaxi trips around San Francisco at any time of day. Prior to the approval, Cruise was only authorized to offer fared passenger service from driverless cars overnight from 10 pm to 6 am, when there are fewer pedestrians or traffic that could confuse the autonomous vehicle’s software.

    The collisions, which both occurred on Thursday, reveal potential risks of driverless technology.

    In a blog post, Cruise’s general manager for San Francisco said the firetruck crash occurred when an emergency vehicle that appeared to be en route to an emergency scene moved into an oncoming lane of traffic to bypass a red light. Cruise’s driverless car identified the risk, the blog post said, but it “was ultimately unable to avoid the collision.”

    That crash resulted in one passenger being taken to the hospital via ambulance for seemingly minor injuries, according to the company.

    Cruise told CNN the other crash on Thursday took place when another car ran a red light “at a high rate of speed.”

    “The AV detected the vehicle and braked but the other vehicle made contact with our AV. There were no passengers in our AV and the driver of the other vehicle was treated and released at the scene,” Hannah Lindow, a Cruise spokesperson, told CNN.

    It is unclear whether the two accidents would have been avoided had there been a human driver rather than an autonomous vehicle (AV) involved – but the crashes were not the only two incidents involving Cruise’s driverless cars in San Francisco last week.

    On Tuesday, Cruise confirmed on X, formerly known as Twitter, that one of its driverless taxis drove into a construction area and stopped in wet concrete.

    “This vehicle has already been recovered and we’re in communication with the city about this,” the company said.

    The recent events underscore the challenges of creating safe, fully driverless passenger vehicles.

    General Motors acquired Cruise Automation in 2016 for $1 billion, solidifying its place in the autonomous vehicles race, but many companies have since scaled back, or abandoned their driverless car ambitions. The endeavor has proven costly, and mastering all situations that humans might face behind the wheel is difficult and time-consuming.

    Ridesharing giants Uber and Lyft have both sold autonomous vehicle units in recent years. Even Tesla CEO Elon Musk, who has been optimistic about autonomous vehicle technology, has yet to fully deliver on his promise.

    Tesla vehicles now come with the option to add a “full self-driving” feature in beta-testing for $15,000, but drivers must agree to “stay alert, keep your hands on the steering wheel at all times and maintain control of your car.”

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  • Google launches watermarks for AI-generated images | CNN Business

    Google launches watermarks for AI-generated images | CNN Business

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    New York
    CNN
     — 

    In an effort to help prevent the spread of misinformation, Google on Tuesday unveiled an invisible, permanent watermark on images that will identify them as computer-generated.

    The technology, called SynthID, embeds the watermark directly into images created by Imagen, one of Google’s latest text-to-image generators. The AI-generated label remains regardless of modifications like added filters or altered colors.

    The SynthID tool can also scan incoming images and identify the likelihood they were made by Imagen by scanning for the watermark with three levels of certainty: detected, not detected and possibly detected.

    “While this technology isn’t perfect, our internal testing shows that it’s accurate against many common image manipulations,” wrote Google in a blog post Tuesday.

    A beta version of SynthID is now available to some customers of Vertex AI, Google’s generative-AI platform for developers. The company says SynthID, created by Google’s DeepMind unit in partnership with Google Cloud, will continue to evolve and may expand into other Google products or third parties.

    Deepfakes and altered photographs

    As deepfake and edited images and videos become increasingly realistic, tech companies are scrambling to find a reliable way to identify and flag manipulated content. In recent months, an AI-generated image of Pope Francis in a puffer jacket went viral and AI-generated images of former President Donald Trump getting arrested were widely shared before he was indicted.

    Vera Jourova, vice president of the European Commission, called for signatories of the EU Code of Practice on Disinformation – a list that includes Google, Meta, Microsoft and TikTok – to “put in place technology to recognize such content and clearly label this to users” in June.

    With the announcement of SynthID, Google joins a growing number of startups and Big Tech companies that are trying to find solutions. Some of these companies bear names like Truepic and Reality Defender, which speak to the potential stakes of the effort: protecting our very sense of what’s real and what’s not.

    The Coalition for Content Provenance and Authenticity (C2PA), an Adobe-backed consortium, has been the leader in digital watermark efforts, while Google has largely taken its own approach.

    In May, Google announced a tool called About this image, offering users the ability to see when images found on its site were originally indexed by Google, where images might have first appeared and where else they can be found online.

    The tech company also announced that every AI-generated image created by Google will carry a markup in the original file to “give context” if the image is found on another website or platform.

    But as AI technology develops faster than humans can keep up, it’s unclear whether these technical solutions will be able to fully address the problem. OpenAI, the company behind Dall-E and ChatGPT, admitted earlier this year that its own effort to help detect AI-generated writing, rather than images, is “imperfect,” and warned it should be “taken with a grain of salt.”

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  • Biden administration seeks to remove medical bills from credit reports | CNN Politics

    Biden administration seeks to remove medical bills from credit reports | CNN Politics

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    CNN
     — 

    Millions of Americans with unpaid medical bills would no longer have that debt show up on credit reports under proposals being considered by the Consumer Financial Protection Bureau.

    The agency, which is soliciting feedback from small businesses that may be affected, expects to issue a proposed rule next year, the bureau said Thursday.

    If the rule is finalized, consumer credit companies would be barred from including medical debt and collection information on reports that creditors use to make underwriting decisions.

    Creditors would only be able consider non-medical information when evaluating borrowers’ loan applications. And debt collectors would no longer be able to use the listing of medical debt on credit reports as leverage to pressure consumers into paying questionable bills, the bureau said.

    “Research shows that medical bills have little predictive value in credit decisions, yet tens of millions of American households are dealing with medical debt on their credit reports,” said CFPB Director Rohit Chopra. “When someone gets sick, they should be able to focus on getting better, rather than fighting debt collectors trying to extort them into paying bills they may not even owe.”

    Roughly 20% of Americans reported having medical debt, according to a 2022 report from the bureau. But Chopra stressed that many health care bills contain mistakes.

    “Families are often barraged with a string of confusing and error-ridden bills, and too many of us have ended up in a doom loop of disputes between insurance companies and health care providers,” he said. “These bills, even ones where the patient doesn’t owe anything further, can end up being reported on the patient’s credit report.”

    The proposals under consideration are the latest step in the bureau’s efforts to curb the impact of medical debt on consumers. CFPB and other agencies are also looking into medical billing practices, including costly products such as medical credit cards and installment loans.

    The White House has also sought to help lessen Americans’ medical debt burden as part of its effort to help people contend with inflation and higher costs of living. Last year, it laid out a four-point plan to help protect consumers, including having the bureau investigate credit reporting companies and debt collectors that violate patients’ and families’ rights.

    Medical debt has lowered people’s credit scores, which affects their ability to buy a home, get a mortgage or own a small business, Vice President Kamala Harris said in a call with reporters on Thursday.

    “We know credit scores determine whether a person can have economic health and well-being, much less the ability to grow their wealth,” she said. “Today, we are offering a solution to fix this problem … Together, these measures will improve the credit scores of millions of Americans so that they will better be able to invest in their future.”

    Also last year, the three largest credit reporting agencies – Equifax, Experian and TransUnion – announced they would remove nearly 70% of medical debt from consumer credit reports.

    The agencies no longer include medical debt that went to collections on consumer credit reports once it has been paid off. That eliminated billions of dollars of debt on consumer records.

    In addition, unpaid medical collection debt no longer appears on credit reports for the first year, whereas the previous grace period was six months. That gives people more time to work with their health insurers or providers to address the bills. And medical collection debt of less than $500 is no longer included on credit reports.

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  • Major Supreme Court cases to watch in the new term | CNN Politics

    Major Supreme Court cases to watch in the new term | CNN Politics

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    CNN
     — 

    Looking at an upcoming Supreme Court term from the vantage point of the first Monday in October rarely tells the full story of what lies ahead, but the docket already includes major cases concerning the intersection between the First Amendment and social media, gun rights, racial gerrymandering and the power of the executive branch when it comes to regulation.

    The court will still determine if it will hear oral arguments on issues such as medication abortion and transgender rights, not to mention the possibility of a flurry of emergency requests related to the 2024 election.

    Here are some of the key cases on which the court will hear oral arguments this term:

    After the Supreme Court issued a major decision last year expanding gun rights nationwide, lower courts began reconsidering hundreds of firearms regulations across the country under the new standard crafted by Justice Clarence Thomas that a gun law passes legal muster only if it is rooted in history and tradition.

    On the heels of that decision, a federal appeals court invalidated a federal law that bars an individual who is subject to a domestic violence restraining order from possessing a firearm. That law, the 5th US Circuit Court of Appeals ruled, “is an outlier that our ancestors would never have accepted.”

    The Biden administration has appealed, saying the ruling “threatens grave harms for victims of domestic violence.”

    In 2019, nearly two-thirds of domestic homicides in the United States were committed with a gun, according to Everytown for Gun Safety.

    Lawyers for Zackey Rahimi, a man who was prosecuted under the law in 2020 after a violent altercation with his girlfriend, have urged the justices to let the lower court opinion stand, arguing in part that there is no law from the founding era comparable to the statute at hand.

    Racial gerrymandering: South Carolina congressional maps

    Justices will consider a congressional redistricting plan drawn by South Carolina’s Republican-controlled legislature in the wake of the 2020 census. Critics say it was designed with discriminatory purpose and amounts to an illegal racial gerrymander.

    The case focuses the court’s attention once again on the issue of race and map drawing and comes after the court ordered Alabama to redraw the state’s congressional map last term to account for the fact that the state is 27% black. The decision, penned by Chief Justice John Roberts, surprised liberals who feared the court was going to make it harder for minorities to challenge maps under Section 2 of the historic Voting Rights Act.

    In the latest case, the South Carolina State Conference of the NAACP and a Black voter named Taiwan Scott, are challenging the state’s congressional District 1 that is located along the southeastern coast and is anchored in Charleston County. Although the district consistently elected Republicans from 1980 to 2016, in 2018 a Democrat was elected in a political upset, though a Republican recaptured the seat in 2020.

    The person who devised the map has testified that he was instructed to make the district “more Republican leaning,” but that he did not consider race. He did, however, acknowledge that he examined racial data after drafting each version and that the Black voting age population of the district was likely viewed during the drafting process.

    A three-judge district court panel struck down the plan in January, saying that race had been the predominant motivating factor. “To achieve a target of 17% African American population,” the court said, “Charleston County was racially gerrymandered and over 30,000 African Americans were removed from their home district.”

    Expert explains why Justice Thomas’ gifts from wealthy friends are problematic

    In the latest attack against the so-called administrative state, the justices are considering whether to overturn decades old precedent to scale back the power of federal agencies, impacting how the government tackles issues such as climate change, immigration, labor conditions and public health.

    At issue is an appeal from herring fishermen in the Atlantic who say the National Marine Fisheries Service does not have the authority to require them to pay the salaries of government monitors who ride aboard the fishing vessels.

    In agreeing to hear the case, the justices signaled they will reconsider a 1984 decision – Chevron v. Natural Resources Defense Council – that sets forward factors to determine when courts should defer to a government agency’s interpretation of the law. First, they examine a statute to see if Congress’ intent is clear. It if is – then the matter is settled. But if there is ambiguity – the court defers to the agency’s expertise.

    Solicitor General Elizabeth Prelogar told the justices that the agency was acting within the scope of its authority under the Magnuson-Stevens Fishery Conservation and Management Act and said the fishermen are not responsible for all the costs. The regulation was put in place to combat overfishing of the fisheries off the coasts of the US.

    Representing the fishermen, former Solicitor General Paul Clement argues that the government exceeded its authority and needs direct and clear congressional authorization to make such a demand. “The ‘net effect’ of Chevron,” Clement said, is that it “incentives a dynamic where Congress does far less than the Framers anticipated, and the executive branch is left to do far more by deciding controversial issues via regulatory fiat”

    For the second time in recent years, the court is taking aim at a watchdog agency created to combat unfair and deceptive practices against consumers, in a case that could deal a fatal blow to the future of the agency and send reverberations throughout the financial services industry.

    At the center of the case at hand is the Consumer Financial Protection Bureau – an independent agency set up in the wake of the 2008 financial meltdown that works to monitor the practices of lenders, debt collectors and credit rating agencies.

    Congress chose to fund the CFPB from outside the annual appropriations process to ensure its independence. As such, the agency receives its funding each year from the earnings of the Federal Reserve System. But the conservative 5th US Circuit Court of Appeals held last year that the funding scheme violates the Appropriations Clause of the Constitution, that, the court said “ensures Congress’ “exclusive power over the federal purse.”

    According to the CFPB, the agency has obtained more than $18.9 billion in ordered relief, including restitution and canceled debts, for more than 195 million consumers, and more than $4.1 billion in penalties, in actions brought by the agency against financial institutions and individuals that have broken federal consumer financial protection laws.

    A handful of other agencies have similar funding schemes including the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.

    Three years ago, the Supreme Court limited the independence of the CFPB by invalidating its leadership structure. A 5-4 court held that the structure violated the separation of powers because the president was restricted from removing the director, even if they had policy disagreements.

    Agency regulatory authority: Securities and Exchange Commission

    The justices are looking at the in-house enforcement proceedings of the US Securities and Exchange Commission in another case that invites the conservative majority to pare back the regulatory authority of federal agencies.

    The court’s decision could impact whether the SEC and other agencies can conduct enforcement proceedings in-house, using administrative courts staffed with agency employees, or whether such actions must be brought in federal court.

    On one side are critics of such agency courts who argue that they allow federal employees to serve as prosecutors, judges and jury, issuing rulings that could particularly hurt small businesses. On the other side are those who point out that several agencies, including the Social Security Administration, have such internal proceedings because the topics are often complex and the agency has more expertise than a federal judge.

    The case arose in 2013 after the SEC brought an enforcement action against George Jarkesy, who had established two hedge funds with his advisory firm, Patriot28, for securities fraud.

    The 5th Circuit ruled that the SEC’s proceedings deprive individuals of their Seventh Amendment right to a civil jury. In addition, the court said that Congress had improperly delegated legislative power to the SEC, which gave the agency unconstrained authority at times to choose the in-house administrative proceeding rather than filing suit in district court.

    In December, the court will examine the historic multibillion-dollar Purdue Pharma bankruptcy settlement with several states that would ultimately offer the Sackler family broad protection from OxyContin-related civil claims.

    Until recently, Purdue was controlled by the Sackler family, who withdrew billions of dollars from the company before it filed for bankruptcy. The family has now agreed to contribute up to $6 billion to Purdue’s reorganization fund on the condition that the Sacklers receive a release from civil liability.

    The Biden administration, representing the US Trustee, the executive branch agency that monitors the administration of bankruptcy cases, has called the plan “exceptional and unprecedented” in court papers, noting that lower courts have divided on when parties can be released from liability for actions that caused societal harm.

    “The plan’s release ‘absolutely, unconditionally, irrevocably, fully, finally, forever and permanently releases’ the Sacklers from every conceivable type of opioid-related civil claim – even claims based on fraud and other forms of willful misconduct that could not be discharged if the Sacklers filed for bankruptcy in their individual capacities,” Prelogar argued in court papers.

    For the second year running, the justices will leap into the online moderation debate and decide whether states can essentially control how social media companies operate.

    If upheld, laws from Florida and Texas could open the door to more state legislation requiring platforms such as Facebook, YouTube and TikTok to treat content in specific ways within certain jurisdictions – and potentially expose the companies to more content moderation lawsuits.

    It could also make it harder for platforms to remove what they determine is misinformation, hate speech or other offensive material.

    “These cases could completely reshape the digital public sphere. The question of what limits the First Amendment imposes on legislatures’ ability to regulate social media is immensely important – for speech, and for democracy as well,” said Jameel Jaffer, the executive director of Columbia University’s Knight First Amendment Institute, in a statement.

    “It’s difficult to think of any other recent First Amendment cases in which the stakes were so high,” Jaffer added.

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  • LinkedIn is cutting more than 650 jobs | CNN Business

    LinkedIn is cutting more than 650 jobs | CNN Business

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    New York
    CNN
     — 

    LinkedIn is laying off 668 people across its engineering, product, talent and finance teams as part of a broader restructuring, the social media platform announced Monday.

    In a blog post, the social media site for professionals said it is making changes to its organizational structure and streamlining its decision making.

    “Talent changes are a difficult, but necessary and regular part of managing our business,” the company said. Microsoft bought LinkedIn in 2016.

    The company is dedicating many of its resources toward artificial intelligence. Recently, LinkedIn announced an AI-assisted candidate discovery for recruiters using the site. And in Microsoft’s most recent earnings report, LinkedIn reported its AI-powered collaborative articles are the fastest-growing traffic driver on the site.

    LinkedIn already cut 716 positions in May and shut down its jobs app in mainland China. That decision was made amid shifts in customer behavior and slower revenue growth, CEO Ryan Roslansky said in a letter to employees.

    In the wake of mass layoffs across the tech sector at the end of last year, LinkedIn enjoyed an uptick in users and “record engagement” among its 875 million members at the time, Microsoft CEO Satya Nadella told analysts in last October’s earnings call.

    The company continues to grow financially. LinkedIn also announced in its most recent earnings report that it surpassed $15 billion in revenue for the first time during this fiscal year, and that its membership growth “accelerated” for the eighth quarter in a row.

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  • Neuralink, Elon Musk’s brain implant startup, raises $280 million from Peter Thiel’s VC fund | CNN Business

    Neuralink, Elon Musk’s brain implant startup, raises $280 million from Peter Thiel’s VC fund | CNN Business

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    New York
    CNN
     — 

    Elon Musk’s biotechnology startup Neuralink raised $280 million in a fundraising round, the company announced Monday via X, the Musk-owned social media platform formerly known as Twitter.

    The Series D round was led by Founders Fund, a San Francisco-based VC firm established by Peter Thiel, the controversial billionaire who was also a cofounder at PayPal.

    “We’re extremely excited about this next chapter at Neuralink,” the company wrote.

    The brain chip startup wants to use implants to connect your brain to a computer, a goal Musk has been working on for five years. The company so far has only tested on animals and faced scrutiny after a monkey died in project testing in 2022 as part of efforts to get the animal to play Pong, a computer game.

    Macaque monkeys have been used in testing by Neuralink as the company has been developing Bluetooth-enabled implantable chips — inserted into the monkey’s brains — that ​the company says can communicate with computers via a small receiver.

    The funding news comes months after Musk announced the company was moving towards human trials. The billionaire said at a December recruiting event that Neuralink has submitted “most” of its paperwork to the US Food and Drug Administration and could begin testing on humans within six months.

    But employees have said the company is rushing to market, resulting in careless animal deaths and a federal investigation, according to a December report by Reuters.

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

    A tweet by Neuralink Monday announced they were hiring and invited those interested to “join in on engineering challenges to restore vision and mobility.”

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  • Nvidia’s quarterly sales double on the back of AI boom | CNN Business

    Nvidia’s quarterly sales double on the back of AI boom | CNN Business

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    New York
    CNN
     — 

    The artificial intelligence boom continues to fuel a blockbuster year for chipmaker Nvidia.

    Nvidia’s stock jumped as much as 9% in after-hours trading Wednesday after the Santa Clara, California-based company posted year-over-year sales growth of 101%, to $13.5 billion for the three months ended in July.

    The results were even stronger than the $11.2 billion in revenue that Wall Street analysts expected. The company’s non-GAAP adjusted profits grew a stunning 429% from the same period in the prior year to $2.70 per share, also beating analysts’ expectations. GAAP stands for generally accepted accounting principles.

    Nvidia’s stock has climbed by just over 220% since the start of this year amid a surge in the popularity of and demand for artificial intelligence technology. The American chipmaker produces processors that power generative AI, technology that can create text, images and other media — and which forms the foundation of buzzy new services such as ChatGPT.

    “A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” Nvidia CEO Jensen Huang said in a statement, adding that the company is working with “Leading enterprise IT system and software providers … to bring NVIDIA AI to every industry.”

    “The race is on to adopt generative AI,” he said.

    Huang had said following the company’s May earnings report that the firm was ramping up its supply to meet “surging demand.”

    “Nvidia’s hardware has become indispensable to the AI-driven economy,” Insider Intelligence senior analyst Jacob Bourne said in emailed commentary. “The pressing question is whether Nvidia can consistently exceed the now-higher expectations.”

    This story is developing and will be updated.

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  • Britain says may clear restructured Microsoft-Activision deal | CNN Business

    Britain says may clear restructured Microsoft-Activision deal | CNN Business

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    Microsoft’s restructuring of its proposed $69 billion acquisition of Activision Blizzard “opens the door” to the biggest ever gaming deal being cleared, Britain’s antitrust regulator said Friday.

    Microsoft (MSFT) announced the deal in early 2022, but it was blocked in April by the UK competition regulator, which was concerned the US tech giant would gain too much control of the nascent cloud gaming market.

    Activision Blizzard (ATVI), which makes “Call of Duty,” agreed in August to sell its streaming rights to Ubisoft Entertainment in a new attempt to win over the Competition and Markets Authority (CMA).

    The Ubisoft divestment “substantially addresses previous concerns,” the Competition and Markets Authority said in a statement.

    “While the CMA has identified limited residual concerns with the new deal, Microsoft has put forward remedies which the CMA has provisionally concluded should address these issues,” the regulator said.

    Consummating the deal would turn Microsoft into the third largest video game publisher in the world, after Tencent and Sony.

    Microsoft said it was “encouraged by this positive development in the CMA’s review process.”

    “We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline,” Microsoft President Brad Smith said.

    Activision, which also makes “World of Warcraft,” “Overwatch” and “Candy Crush,” said the preliminary approval was great news for its future with Microsoft.

    The European Union waved the deal through in May after accepting Microsoft’s commitments to license Activision’s games to other platforms, the same remedies that Britain had rejected.

    The US Federal Trade Commission also opposes the deal, but it has failed to stop it. A federal judge ruled in July that the deal can close, a decision the FTC is appealing.

    The CMA’s decision to reopen the case was a radical departure from its play book, but it said on Friday it had been consistent and Microsoft had “substantially restructured the deal” to address its concerns.

    “It would have been far better, though, if Microsoft had put forward this restructure during our original investigation,” CMA Chief Executive Sarah Cardell said.

    “This case illustrates the costs, uncertainty and delay that parties can incur if a credible and effective remedy option exists but is not put on the table at the right time.”

    Equity analyst Sophie Lund-Yates at Hargreaves Lansdown said the loss of the cloud gaming rights was not an ideal concession for Microsoft to have to make, but it was necessary collateral if the deal were to be waved through.

    “This looks to be the final bump in the road,” she said.

    The CMA said there were “residual concerns” around the Ubisoft deal, but Microsoft has offered remedies to ensure the terms of the sale were enforceable by the regulator.

    It is now consulting on the remedies before making a final decision.

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  • iPhone sales in China shrink as US political tensions grow | CNN Business

    iPhone sales in China shrink as US political tensions grow | CNN Business

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    CNN
     — 

    Demand for Apple’s new iPhone 15 lineup is weaker in China than for last year’s models, according to analysts.

    Sales for the iPhone 15 are down 4.5% in China compared to iPhone 14 sales in the first two weeks after its launch, according to Counterpoint Research. Separately, Bloomberg reported on Monday financial firm Jefferies said iPhone 15 sales dropped by a double-digit percentage following strong customer demand for Huawei’s new Mate 60 smartphone line.

    Apple

    (AAPL)
    shares fell 0.08% following the reports.

    The reports come amid a floundering Chinese economy, a struggling housing market, and more competition among higher-end vendors in China, particularly from Chinese device manufacturer Huawei.

    “We’re seeing a lot of nationalism right now as Chinese consumers who think they’ve been wronged by the US government and sanctions are gravitating toward the Mate 60 and that is edging into Apple volumes,” Jeff Fieldhack, research director at Counterpoint, told CNN.

    At the same time, China remains very important to Apple as it is the largest market behind the US. Fieldhack said he doesn’t believe Huawei will surpass Apple right now in terms of smartphone sales but expects continued interest in the Mate 60 will continue to “eek” into Apple’s numbers.

    “Apple made a lot of gains during its launch period last year, where it became number one in China,” he said. “Things looked strong but now, with the political tension and competition, that is a reason for concern.”

    However, the Phone 15 lineup is up about 10% year-over-year in the US, according to Counterpoint. That’s strong growth for Apple considering sales fell for the third consecutive quarter in August, ahead of the iPhone 15 launch.

    The latest iPhone 15 devices come with a slimmer design, a more-advanced main camera system and a customizable Action button, which gives the silence button additional controls, from starting a voice memo to writing a note. Perhaps the biggest change coming to the models is that they will now use a USB-C charging cord, ending an 11-year run with Apple’s proprietary Lightning charging cable.

    This isn’t the first time the Mate 60 has made headlines since its late August launch. In September, the US government sought more information about the Mate 60 Pro’s 5G Kirin 9000s processor reportedly developed specifically for the manufacturer. Its debut shocked industry experts who questioned how the company could make such a chip following sweeping efforts by the United States to restrict China’s access to foreign chip technology because of perceived national security concerns.

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  • T-Mobile to lay off 5,000 employees | CNN Business

    T-Mobile to lay off 5,000 employees | CNN Business

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    New York
    CNN
     — 

    T-Mobile on Thursday announced it plans to lay off 5,000 employees, or around 7% of its total staff, over the next five weeks.

    The reductions will largely affect corporate and back-office jobs that are “primarily duplicative” to other roles and will reduce the company’s middle management layers, CEO Mike Sievert said in a letter to employees Thursday. The company also plans to reduce its spending on “external workers and resources,” but its retail and “consumer care” staff who work directly with customers will not be affected, he said.

    “What it takes to attract and retain customers is materially more expensive than it was just a few quarters ago,” Sievert said.

    T-Mobile’s cuts comes after months of mass layoff announcements at a range of other technology companies — including Microsoft and Meta — as firms grapple with an uncertain economic environment.

    In its most recent quarterly earnings report last month, T-Mobile reported sales down 2.5% year-over-year and net customer additions fell slightly from the same period in the prior year, although it posted record low customer churn and profit growth. T-Mobile’s stock has fallen more than 7% since last August. Shares were trading down around 1% following its layoff announcement.

    In Thursday’s letter, Sievert said that in the three years since closing T-Mobile’s acquisition of rival carrier Sprint, it has been working to streamline the combined businesses and accelerate the build-out of its high-speed internet business. However, he suggested it was important for the company to now narrow its focus.

    “It is clear that doing everything we are doing and just doing it faster is not enough to deliver on these changing customer expectations going forward,” he said. “Today’s changes are all about getting us efficiently focused on a finite set of winning strategies.”

    T-Mobile plans to notify employees who will be laid off by the end of September. The company estimates it will incur a pre-tax charge of $450 million in the September quarter related to the reductions, according to a Thursday securities filing.

    Affected employees will receive “competitive severance packages” based on tenure, as well as accelerated stock vesting, access to career transition services and other benefits, Sievert told employees. He added that the company is not planning additional, widespread employee reductions in the foreseeable future.

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  • Elon Musk blames the ADL for 60% ad sales decline at X, threatens to sue | CNN Business

    Elon Musk blames the ADL for 60% ad sales decline at X, threatens to sue | CNN Business

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    New York
    CNN
     — 

    X owner Elon Musk is threatening to sue the Anti-Defamation League for defamation, claiming that the nonprofit organization’s statements about rising hate speech on the social media platform have torpedoed X’s advertising revenue.

    In a post on X, formerly known as Twitter, Musk said US advertising revenue is “still down 60%, primarily due to pressure on advertisers by @ADL (that’s what advertisers tell us), so they almost succeeded in killing X/Twitter!”

    Musk also claimed that since he took over the platform in October 2022, the ADL “has been trying to kill this platform by falsely accusing it & me of being anti-Semitic.”

    “To clear our platform’s name on the matter of anti-Semitism, it looks like we have no choice but to file a defamation lawsuit against the Anti-Defamation League … oh the irony!” he said.

    The ADL said as a matter of policy it does not comment on legal threats. But the organization noted it recently met with X leadership, including CEO Linda Yaccarino, who Musk hired to help revive ad revenue. Yaccarino thanked ADL CEO Jonathan Greenblatt following the meeting last week, saying in a post on X, “A strong and productive partnership is built on good intentions and candor.”

    Meanwhile, Musk, the platform’s owner, has recently liked and engaged with a series of posts criticizing the organization.

    A #BanTheADL campaign has spread on X, and the ADL accused Musk of “lifting” the campaign.

    “ADL is unsurprised yet undeterred that antisemites, white supremacists, conspiracy theorists and other trolls have launched a coordinated attack on our organization. This type of thing is nothing new,” an ADL spokesperson said.

    The ADL and other similar organizations, including the Center for Countering Digital Hate, have found that the volume of hate speech on the website has grown dramatically under Musk’s stewardship.

    In one instance, the CCDH found the daily use of the n-word under Musk is triple the 2022 average and the use of slurs against gay men and trans persons are up 58% and 62%, respectively. The ADL said in a separate report that its data shows “both an increase in antisemitic content on the platform and a decrease in the moderation of antisemitic posts.”

    Musk called the reports in May by the two watchdog groups “utterly false,” claiming that “hate speech impressions,” or the number of times a tweet containing hate speech has been viewed, “continue to decline” since his early days of owning the company when the platform saw a spike in hate speech designed to test Musk’s tolerance.

    Still, two brands last month paused their ad spending on X after their advertisements ran alongside an account promoting Nazism. X suspended the account after the issue was flagged and said ad impressions on the page were minimal.

    Last month, Musk sued the CCDH, accusing the nonprofit group of deliberately trying to drive advertisers away from the platform by publishing reports critical of the platform’s response to hateful content.

    It specifically claims CCDH violated the platform’s terms of service, and federal hacking laws, by scraping data from the company’s platform and by encouraging an unnamed individual to improperly collect information about Twitter that it had provided to a third-party brand monitoring provider.

    In response, CCDH’s CEO Imran Ahmed previously told CNN that much of the lawsuit, particularly its claim about the unnamed individual, “sounds a bit like a conspiracy theory to me.”

    “The truth is that he’s [Elon Musk] been casting around for a reason to blame us for his own failings as a CEO,” Ahmed said, “because we all know that when he took over, he put up the bat signal to racists and misogynists, to homophobes, to antisemites, saying ‘Twitter is now a free-speech platform.’ … And now he’s surprised when people are able to quantify that there has been a resulting increase in hate and disinformation.”

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