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  • Silicon Valley escalates the battle over returning to the office | CNN Business

    Silicon Valley escalates the battle over returning to the office | CNN Business

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    CNN
     — 

    Three years after Silicon Valley companies led the charge for embracing remote work in the early days of the pandemic, the tech industry is now escalating the fight to bring employees back into the office -— and igniting tensions with staff in the process.

    Google, which has long been a bellwether for workplace policies in the tech industry and beyond, frustrated some employees this week by announcing plans to begin more strictly enforcing its policy that requires workers in-office at least three days a week. The updated policy includes tracking office badge attendance and possibly factoring it into performance reviews, according to CNBC, citing internal memos.

    “Overnight, workers’ professionalism has been disregarded in favor of ambiguous attendance tracking practices tied to our performance evaluations,” Chris Schmidt, a software engineer at Google and member of the grassroots Alphabet Workers Union, told CNN in a statement. “The practical application of this new policy will be needless confusion amongst workers and a disregard for our various life circumstances.”

    In a statement, Ryan Lamont, a Google spokesperson, told CNN that its policy of working in the office three days a week is “going well, and we want to see Googlers connecting and collaborating in-person, so we’re limiting remote work to exception only.”

    Lamont said that company leaders can see reports showing how their teams are adopting the hybrid work model, including “aggregated data” on badge swipes. He added that now that the company is more than a year into its hybrid model, “we’re formally integrating this approach into all of our workplace policies.”

    Google isn’t alone in facing pushback from employees. Other tech companies are also grappling with how best to compel workers to come into the office after they’ve grown accustomed to greater flexibility. The tug-of-war is compounded by the fact that tech companies have laid off tens of thousands of employees over the past year, leveling a major blow to employee morale.

    At Amazon, tensions boiled over last week as hundreds of office workers staged a walkout to call attention to their grievances, including the three-day return-to-office mandate that was implemented in May.

    A current Amazon worker who spoke at the walkout said that she started an internal Slack channel called “remote advocacy” because she wanted a space where workers could discuss how the new return-to-office policy would impact their lives.

    “Before I realized what was happening, that channel had 33,000 people in it,” the worker, who identified only as Pamela, said to the crowd at the event. Pamela called the Slack channel advocating for remote work “the largest concrete expression of employee dissatisfaction in our entire company history.”

    But the employee criticism isn’t stopping tech companies, who have spent billions on sprawling campuses over the years and often preach the value of serendipitous workplace interactions, from moving forward with their return to office policies.

    In response to the walkout, Amazon previously told CNN it may “take time” for some workers to adjust to being in the office more days. But the company also said it’s “happy with how the first month of having more people back in the office has been” and touted the extra “energy, collaboration, and connections happening” in the office.

    Facebook-parent Meta similarly doubled down last week on its push to get workers in the office, warning that employees currently assigned to an office must return to in-person work three days a week starting this September. (A Meta spokesperson told CNN the updated policy was not set in stone, and employees designated as remote workers will be allowed to keep their remote status).

    At least one tech company is taking a gentler approach.

    Salesforce is trying to lure staff into offices by offering to donate $10 to a local charity for each day an employee comes in from June 12 to June 23, according to an internal Slack message reported on by Fortune.

    A Salesforce spokesperson told CNN: “Giving back is deeply embedded in everything we do, and we’re proud to introduce Connect for Good to encourage employees to help us raise $1 Million+ for local nonprofits.”

    But it might take more than temporary charitable contributions to convince some workers it’s worthwhile to return. Schmidt, the software engineer at Google, said that even if you go into the office, there’s no guarantee you’ll have people on your team to work with or even a desk to sit at.

    “Many teams are distributed, and for some of us there may not be anyone to collaborate with in our physical office locations,” Schmidt said. “Currently, New York City workers do not even have enough desks and conference rooms for workers to use comfortably.”

    “A one size fits all policy does not address these circumstances,” he added. “We deserve a voice in shaping the policies that impact our lives to establish clear, transparent and fair working conditions for all of us.”

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  • Biden kicks off reelection bid with union rally in Philadelphia | CNN Politics

    Biden kicks off reelection bid with union rally in Philadelphia | CNN Politics

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    CNN
     — 

    President Joe Biden kicked off his reelection campaign Saturday at a union rally in his frequent haunt of Pennsylvania, the state that remains an intersection of his personal and political identities that he hopes can propel him to a second term.

    The first official rally of his final political campaign was a moment for Biden to underscore recent economic wins that undergird his argument for another four years in the White House.

    “Just think back. Remember what it was like when I came to office, we came into office. Remember the mess we inherited,” Biden told the audience in Philadelphia. “Now look at where we are today.”

    To a roaring crowd, who repeatedly cheered “four more years,” the president touted several accomplishments, including the bipartisan infrastructure law, a coronavirus relief package, a bipartisan semiconductor chip manufacturing law and the recently negotiated debt ceiling deal that helped avert a US default.

    Biden also criticized recent Republican tax proposals while describing what he called his middle-class vision for the American economy, referring to it several times as “Biden-omics.”

    Biden made only brief mention of Donald Trump, the current front-runner for the 2024 GOP presidential nomination, steering clear of the former president’s recent federal indictment and arraignment but hitting him on infrastructure.

    “Under my predecessor, infrastructure week became a punchline,” Biden said. “On my watch, we’re making infrastructure a decade headline.”

    First lady Jill Biden, who spoke shortly before her husband, highlighted the president’s optimism. Wearing a corsage to mark their 46th wedding anniversary Saturday, the first lady recalled how she met Biden following the death of his first wife and baby daughter in a tragic car accident that also injured his two sons.

    “What I love about Joe is that even though he has faced unimaginable tragedies, his optimism is undaunted,” Jill Biden said. “His strength is unshakeable.”

    She added that the president was “not done.”

    “He’s ready to finish the job,” she said. “He’s ready to win, and with your help, he will.”

    Though his economic wins were the centerpiece of Biden’s opening campaign event, polls show many voters give him poor marks for his handling of the economy, particularly as prices have soared post-pandemic. Recent figures have shown inflation easing, however, and fears of an imminent recession have faded.

    Biden has said more Americans will come to reward him for his economic stewardship once the benefits of some of his signature legislative achievements, including a new infrastructure law, begin taking hold.

    Labor groups that threw their backing behind Biden ahead of his speech include the AFL-CIO, which said it was the earliest point in a presidential election cycle it had ever endorsed a candidate.

    “There’s absolutely no question that Joe Biden is the most pro-union president in our lifetimes,” said AFL-CIO President Liz Shuler. “From bringing manufacturing jobs home to America to protecting our pensions and making historic investments in infrastructure, clean energy and education, we’ve never seen a president work so tirelessly to rebuild our economy from the bottom up and middle out.”

    Supporters cheer before Biden speaks at the Pennsylvania Convention Center.

    Biden, who made his first stop after announcing his reelection bid a legislative conference for North America’s Building Trades Unions in Washington, has long relied on union support for his political ambitions.

    “I’m more honored by your endorsement than you can imagine – coming this early, it’s going to make a gigantic difference in this campaign,” Biden said during Saturday’s event in Philadelphia, where he called himself “the most pro-union president in American history.”

    Not all unions have thrown their support behind Biden’s reelection bid. The powerful United Auto Workers said last month it was holding off on endorsing Biden, citing concerns over his policies that would encourage a transition to electric vehicles, according to a memo from the union.

    The UAW has more than 400,000 members, and Biden has touted its support in the past. Last year he called American autoworkers “the most skilled autoworkers in the world.” The group’s membership is mostly concentrated in Michigan, a presidential election battleground.

    Biden also rankled union members last year when he signed legislation that averted a nationwide rail strike – a step he said was necessary to prevent a stoppage of important freight movement.

    Biden’s campaign has leaned into his economic record, including releasing a 60-second ad titled “Backbone” last month. The spot struck a populist tone, mixing audio of the president speaking about “investing in places and people that have been forgotten” and a narrator ticking through the administration’s work to boost infrastructure and manufacturing in the country.

    “Joe Biden’s building an economy that leaves no city, no town, no American behind,” the narrator says.

    This story has been updated with additional information.

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  • Meta is giving parents more visibility into who their teens are messaging on social media | CNN Business

    Meta is giving parents more visibility into who their teens are messaging on social media | CNN Business

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    New York
    CNN
     — 

    Meta is adding new safeguards and monitoring tools for teens across its social platforms: parental controls on Messenger, suggestions for teens to step away from Facebook after 20 minutes, and nudges urging young night-owl Instagrammers to stop scrolling.

    The features announced Tuesday come as Meta

    (META)
    and other social media platforms face heightened pressure from lawmakers over the impact that their platforms have on younger users, who can be just 13 when they sign up for Meta

    (META)
    ’s apps.

    Messenger, Meta’s instant-messaging app, is adding parental supervision tools for the first time that are similar to those that exist on Instagram already: Parents and guardians can see how much time their teens spend on the chat tool, view and receive updates on their contacts list, and get notified if their teen reports someone.

    Another new feature is the ability for parents and teens to have discussions directly through notifications if their accounts are synced up.

    “We heard from parents and teens about the value they’re seeing from how a two-way dialogue can foster and encourage discussions,” Diana Williams, who oversees product changes for youth and families at Meta, told CNN in an interview.

    On Facebook, Meta will start to nudge teen users to take time away from the app after 20 minutes.

    Instagram will add introduce a new nudge that suggests teens close Instagram if they’re scrolling Reels videos for too long during nighttime hours. The effort builds on existing Instagram features like Quiet Mode, which temporarily holds notifications and lets people know if you’re trying to focus.

    In addition, Instagram is testing a feature that limits how people interact with non-followers. Users must now send an invite to connect with someone if they’re not a follower, and they cannot call the recipient or send photos, videos or voice messages or make calls until the user accepts their request. The feature aims to cut down on unwanted content from strangers, particularly for women, the company said.

    It’s the latest in a series of new tools and guardrails for teens from Meta, following the release of leaked internal documents that found Instagram can negatively impact the mental health of its young users. Instagram, for example, has since introduced an educational hub for parents with resources, tips and articles from experts on user safety.

    The company said it’s also taking a “stricter approach” to the content it recommends to teens and will actively nudge them toward different topics, such as architecture and travel destinations, if they’ve been dwelling on any type of content for too long.

    Few changes have been made to Facebook and Messenger until now. Facebook does, however, have a Safety Center that provides supervision tools and resources, such as articles and advice from leading experts.

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  • Twitter isn’t letting users view the site without logging in | CNN Business

    Twitter isn’t letting users view the site without logging in | CNN Business

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    New York
    CNN
     — 

    Twitter appears to be restricting access to its platform for anyone not logged into an account.

    People without a Twitter account or who weren’t logged in used to be able to scroll the platform’s homepage and view public accounts and tweets. But as of this week, when such a user opens the platform they are met with a screen prompting them to sign up or sign in to Twitter.

    Internet users began noticing the change late this week, and on Friday, multiple CNN reporters were unable to access Twitter without logging in.

    It was not immediately clear whether the change was an intentional policy update or a glitch, both of which have been common at Twitter since Musk took over the platform. Twitter did not respond to a request for comment.

    The change comes as billionaire owner Elon Musk attempts to revamp Twitter’s business following months of challenges since his takeover late last year — now with the help of new CEO Linda Yaccarino.

    Twitter’s leadership is urging advertisers to return to the platform after many fled over concerns about increased hate speech, layoffs and general questions about the company’s direction. Musk has also sought to grow subscription revenue by offering a blue verification checkmark for users who sign up for its Twitter Blue service.

    The restriction on public access to Twitter could be an effort to grow the platform’s user base, which has always been significantly smaller than social media rivals like Facebook and Instagram.

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  • Google hit with lawsuit alleging it stole data from millions of users to train its AI tools | CNN Business

    Google hit with lawsuit alleging it stole data from millions of users to train its AI tools | CNN Business

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    CNN
     — 

    Google was hit with a wide-ranging lawsuit on Tuesday alleging the tech giant scraped data from millions of users without their consent and violated copyright laws in order to train and develop its artificial intelligence products.

    The proposed class action suit against Google, its parent company Alphabet, and Google’s AI subsidiary DeepMind was filed in a federal court in California on Tuesday, and was brought by Clarkson Law Firm. The firm previously filed a similar suit against ChatGPT-maker OpenAI last month. (OpenAI did not previously respond to a request for comment on the suit.)

    The complaint alleges that Google “has been secretly stealing everything ever created and shared on the internet by hundreds of millions of Americans” and using this data to train its AI products, such as its chatbot Bard. The complaint also claims Google has taken “virtually the entirety of our digital footprint,” including “creative and copywritten works” to build its AI products.

    Halimah DeLaine Prado, Google’s general counsel, called the claims in the suit “baseless” in a statement to CNN. “We’ve been clear for years that we use data from public sources — like information published to the open web and public datasets — to train the AI models behind services like Google Translate, responsibly and in line with our AI Principles,” DeLaine Prado said.

    “American law supports using public information to create new beneficial uses, and we look forward to refuting these baseless claims,” the statement added.

    Alphabet and DeepMind did not immediately respond to a request for comment.

    The complaint points to a recent update to Google’s privacy policy that explicitly states the company may use publicly accessible information to train its AI models and tools such as Bard.

    In response to an earlier Verge report on the update, the company said its policy “has long been transparent” about this practice and “this latest update simply clarifies that newer services like Bard are also included.”

    The lawsuit comes as a new crop of AI tools have gained tremendous attention in recent months for their ability to generate written work and images in response to user prompts. The large language models underpinning this new technology are able to do this by training on vast troves of online data.

    In the process, however, companies are also drawing mounting legal scrutiny over copyright issues from works swept up in these data sets, as well as their apparent use of personal and possibly sensitive data from everyday users, including data from children, according to the Google lawsuit.

    “Google needs to understand that ‘publicly available’ has never meant free to use for any purpose,” Tim Giordano, one of the attorneys at Clarkson bringing the suit against Google, told CNN in an interview. “Our personal information and our data is our property, and it’s valuable, and nobody has the right to just take it and use it for any purpose.”

    The suit is seeking injunctive relief in the form of a temporary freeze on commercial access to and commercial development of Google’s generative AI tools like Bard. It is also seeking unspecified damages and payments as financial compensation to people whose data was allegedly misappropriated by Google. The firm says it has lined up eight plaintiffs, including a minor.

    Giordano contrasted the benefits and alleged harms of how Google typically indexes online data to support its core search engine with the new allegations of it scraping data to train AI tools.

    With its search engine, he said, Google can “serve up an attributed link to your work that can actually drive somebody to purchase it or engage with it.” Data scraping to train AI tools, however, is creating “an alternative version of the work that radically alters the incentives for anybody to need to purchase the work,” Giordano added.

    While some internet users may have grown accustomed to their digital data being collected and used for search results or targeted advertising, the same may not be true for AI training. “People could not have imagined their information would be used this way,” Giordano said.

    Ryan Clarkson, a partner at the law firm, said Google needs to “create an opportunity for folks to opt out” of having their data used for training AI while still maintaining their ability to use the internet for their everyday needs.

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  • Twitter’s rebrand is the next stage in Elon Musk’s vision for the company. But does anyone want it? | CNN Business

    Twitter’s rebrand is the next stage in Elon Musk’s vision for the company. But does anyone want it? | CNN Business

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    New York
    CNN
     — 

    Elon Musk’s move over the weekend to rebrand Twitter and replace its iconic bird logo with an X is just the latest step in his effort to make over the billionaire’s longtime favorite platform in his image.

    When Musk bought Twitter late last year, he laid out a vision for an “everything” app called X, where users could communicate, shop, consume entertainment and more. Last June — prior to his takeover — Musk told Twitter employees that the platform should be more like China’s WeChat, where he said users “basically live on” the app because “it’s so usable and helpful to daily life.”

    The vision for the rebrand may go all the way back to Musk’s creation of the original X.com in 1999, which Musk hoped would be an all-in-one financial platform and which eventually became PayPal.

    Despite Musk’s longstanding ambitions — and the heightened stakes since he shelled out $44 billion to purchase the social network — ditching Twitter’s branding in service of a future super app is a significant risk.

    Twitter still has a long way to go if Musk wants to build out the kind of services WeChat is known for — everything from ordering groceries and booking yoga classes to paying bills and chatting with friends. And that’s not to mention the financial and competitive challenges the company faces merely existing in its current form, let alone launching a massive expansion. It’s also not clear how much demand there is for such a super app outside of China, given that efforts by other platforms to simply sell users on added shopping features have been slow to take off.

    “While Musk’s vision is to turn ‘X’ into an ‘everything app,’ this takes time, money, and people -— three things that the company no longer has,” Mike Proulx, research director and vice president at Forrester, said in an investor note. By ditching Twitter’s name, Proulx added, Musk “will have singlehandedly wiped out over fifteen years of a brand name that has secured its place in our cultural lexicon,” leaving him to start fresh at a precarious time for the company.

    The X branding has already started taking over Twitter.

    Musk — who bought Twitter with a company called X Corp. — tweeted on Sunday that X.com now redirects to Twitter. (Musk reportedly bought the X.com domain back from PayPal in 2017.)

    On Sunday night, the new stylized X logo was projected onto the company’s headquarters. And by Monday, the bird logo had been replaced by an X on Twitter’s website. Musk even told followers that tweets should instead be called “x’s.”

    On Sunday, CEO Linda Yaccarino seemed to confirm Musk’s vision for the company. “X is the future state of unlimited interactivity — centered in audio, video, messaging, payments/banking — creating a global marketplace for ideas, goods, services, and opportunities,” Yaccarino said in a tweet.

    Walter Isaacson, the legendary tech journalist who has been shadowing Musk to write his biography, tweeted on Sunday that Musk told him even before the Twitter acquisition that he wanted to use the social platform to fulfill his original, decades-old vision for X.com. “I am very excited about finally implementing X.com as it should have been done, using Twitter as an accelerant!” Musk texted Isaacson at 3:30 a.m. one morning last October, just ahead of his takeover, according to the writer.

    On Monday, Musk explained the move in a tweet saying, “The Twitter name made sense when it was just 140 character messages going back and forth – like birds tweeting – but now you can post almost anything, including several hours of video.”

    “In the months to come, we will add comprehensive communications and the ability to conduct your entire financial world,” Musk said. “The Twitter name does not make sense in that context.”

    (The rebrand also seems to be a continuation of a sort of obsession with the letter “X,” which also features in the name of one of Tesla’s cars, the Model X; the name of his rocket company, SpaceX; the name of his new artificial intelligence firm, xAI; and the name of two of his children, X Æ A-Xii and Exa Dark Sideræl.)

    In recent weeks, Twitter has quietly begun its effort to build out a payments business called Twitter Payments — the company was granted money transmitter licenses in four US states since last month, including Arizona and Michigan. Musk has discussed his desire to promote longer videos on Twitter. And he’s tried to shift Twitter’s business model away from advertising by allowing users to pay for verification, a strategy that has resulted in some chaos but only a limited number of actual subscriptions.

    Still, Musk faces obvious hurdles to turning Twitter into a fully-developed super app. Since acquiring Twitter, Musk has fired around 80% of its staff, scared away many of the advertisers that made up its core user base and frustrated many of its users with controversial policy decisions. And now, Twitter faces steep competition from Meta’s rival app Threads, which launched to stunning success, although its usage has petered off slightly in recent days.

    Musk last week also said that Twitter still has negative cash flow because of a 50% decline in ad revenue.

    Even if Musk does add new features to Twitter, many US tech platforms have struggled to succeed in imitating WeChat. Deloitte said in a report published last year that Western markets are unlikely to see “a single, dominant super-app like WeChat in the near term” because the services such apps would aim to bundle together, such as digital payments and ride hailing, already “have too many well-established players.”

    A 2019 effort by the social media giant then known as Facebook to create its own digital currency and payments system that the company said would make it easier to buy things online officially flopped last year following intense regulatory scrutiny. And both TikTok and Instagram have reportedly scaled back their ambitions to incorporate e-commerce onto their platforms after their shopping features failed to gain significant traction with users.

    And until Musk rolls out significant changes to the platform, observers of the company say ditching Twitter’s well-known brand is a risky move.

    “To rebrand without significant new features seems like a desperate attempt for attention,” especially in the wake of Meta’s launch of Threads, said Joshua White, assistant professor of finance at Vanderbilt University. “This is akin to buying Coke and changing the bottle and name without changing the formula — likely a mistake.”

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  • Twitter says portions of source code leaked online | CNN Business

    Twitter says portions of source code leaked online | CNN Business

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    CNN
     — 

    Twitter said parts of its proprietary code were posted online and had been exposed until Friday, when the company had the material removed from the web and filed for a court order to hunt down the source of the leak.

    The leak saw excerpts of Twitter’s source code — the programming that powers the Twitter platform and its internal tools — posted to the online software repository GitHub, according to a court filing Friday by a Twitter attorney. The files were posted by a pseudonymous GitHub user, identified only by the handle FreeSpeechEnthusiast. The account was created on Jan. 3 and does not appear to have posted any other material besides the Twitter code.

    The code leak represents the latest mishap for Twitter as CEO Elon Musk has sought to reverse a sharp decline in revenues through substantial layoffs and other cost cutting measures that some experts had already said risked making the platform less safe. Leaked source code can not only provide insight into how a company designs its product but can also give criminals the chance to find or exploit security flaws and vulnerabilities.

    Twitter has launched an effort to identify the person or group behind the FreeSpeechEnthusiast GitHub account, as well as anyone who may have interacted with the leaked code. On Friday, Twitter filed for a subpoena at the US District Court for the Northern District of California, which Twitter hopes will compel GitHub to hand over IP addresses, contact information, and access logs associated with the incident.

    “The purpose for which Twitter’s DMCA Subpoena is sought is to obtain the identity of an alleged infringer or infringers, and such information will only be used for the purpose of protecting Twitter’s rights,” Twitter wrote in its filing to the court.

    GitHub removed the content on Friday after Twitter submitted a copyright claim to the company. GitHub declined to comment on the matter but said it publicly posts all copyright takedown requests and referred CNN to Twitter’s request. Twitter, which has cut much of its public relations team under Musk, automatically responded to a request for comment with an email containing a poop emoji.

    The leak was first reported by The New York Times.

    The leak comes as Musk has sought to place more of his own imprint on the social media platform he purchased last year. The acquisition prompted a wave of advertisers to flee the platform over fears the deal would lead to a rise in hate speech and an increase in reputational risks for brands. Musk has blamed the advertiser revolt for steep losses at the company, and has aggressively pushed the company’s subscription service, Twitter Blue, as an alternative revenue stream. He has also said Twitter will charge fees for other software applications to access Twitter’s platform.

    On Saturday, reports on an internal memo by Musk outlining employee stock awards suggested that Twitter was valued at about $20 billion, or less than half of the $44 billion Musk paid for the company. (CNN has not independently confirmed the memo’s existence or its contents.) In the memo, Musk reportedly defended the changes he has made at the company and claimed that Twitter’s valuation could someday exceed $250 billion.

    The same day, Musk tweeted that prior to the changes he made, Twitter only had $1 billion in cash, which he said represented about four months’ worth of expenses and an “extremely dire situation.” But, he added, things are looking up.

    “Now that advertisers are returning, it looks like we will break even in Q2,” he said.

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

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

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    Hong Kong
    CNN
     — 

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

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

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

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

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

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

    Micron told CNN it was aware of the review.

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

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

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

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

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

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

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

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

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

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  • The city without TikTok offers a window to America’s potential future | CNN Business

    The city without TikTok offers a window to America’s potential future | CNN Business

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    Hong Kong
    CNN
     — 

    Across the United States, more than 150 million people are being faced with the possibility of a new reality: life without TikTok.

    The wildly popular short-form video app has been at the center of an ongoing battle, with lawmakers calling for an outright ban, and the company portraying itself as a critical community space, educational platform and just plain fun.

    In Hong Kong, there’s no need to imagine that reality: TikTok discontinued its services there in 2020.

    Its abrupt departure was met with mixed reactions: disappointment from some users and content creators, but also relief from others who say life is better without the app’s infinite scroll.

    At the time of its exit, TikTok had a relatively modest presence in the city and was not ubiquitous like it is in the US today.

    But the varied reactions to its departure, and the way users have pivoted to other platforms or even real-life offline communities, offer Americans a glimpse into their potential TikTok-less future.

    TikTok announced its exit from Hong Kong in July 2020, a week after China imposed a controversial national security law in the city. The decision came as the app tried to distance itself from China and its Beijing-based parent company ByteDance, in the face of growing pressure in the US under the Trump administration.

    But it meant a jarring halt for creators like Shivani Dukhande, who had roughly 45,000 followers at the time the app left Hong Kong.

    Dukhande, 25, saw her account take off in early 2020 during the pandemic, with lifestyle content such as cooking and wellness videos flourishing on the platform.

    “There were a lot of new creators emerging,” she said. “We used to all collaborate together, we had a chat where we would all speak and share ideas and it created a community.”

    Momentum began to build. Companies started reaching out to Dukhande, paying for sponsored content and collaborating on ad campaigns. Brands began partnering with creators on trending “challenges” in a bid to attract young new consumers.

    “More people were joining and it was becoming such a fun thing to do,” she said. “Then, it just kind of went away one morning.”

    “If it continued, then I probably could have made enough to have quit my 9 to 5,” she said. “If I had the chance to grow, it could have been a potential career path.”

    This is one of the main arguments TikTok has made in recent weeks in the US. In March, as the company’s CEO prepared to testify before Congress, TikTok produced a docuseries highlighting American small business owners who rely on the platform for their livelihoods.

    The platform is used by nearly five million businesses in the US, TikTok said in March. And it’s set to surpass rivals: London-based research firm Omdia projected in November that TikTok’s advertising revenues will exceed the combined video ad revenues of Meta – home of Facebook and Instagram – and YouTube by 2027.

    This is partly because people are spending more time on TikTok. In the second quarter of 2022, TikTok users globally spent an average of 95 minutes per day on the app, according to data analytics firm SensorTower – nearly twice as much time as users spent on Facebook and Instagram.

    Shivani Dukhande had created videos about wellness, lifestyle, food and Hong Kong on her TikTok account.

    But in Hong Kong, other platforms have jumped in to fill the gap. Reels, Instagram’s short-form video product, with similar features as TikTok such as an endless scroll, is growing quickly – and Dukhande has gotten on board.

    She had to rebuild her audience from scratch, and now has 12,500 Instagram followers, but she feels optimistic about its growth. Still, the loss of TikTok was a “missed opportunity,” she said, and the burgeoning community of creators has largely faded from sight.

    “The amount of jobs, the amount of content creation, the amount of marketing opportunities that were there with TikTok – we sort of missed out on that whole chunk of it.”

    But for some people, TikTok’s departure was a welcome change.

    Poppy Anderson, 16, has been using TikTok since its launch in 2018. And, like many others in her generation, she would spend hours “scrolling and scrolling” – even when feeling unfulfilled.

    “It was very easy to kind of find exactly what you like on there, because the [algorithm-run] For You page kept you there,” she said. “And it’s entertaining, but you don’t really get anything from it.”

    She described TikTok as often being a toxic environment that breeds narrow thinking, herd mentality, a misguided “cancel culture” and inappropriate online behavior such as critiquing the bodies of girls and women. Even people she knew in real life began acting differently after joining the app, which strained friendships, she said.

    Martin Poon, 15, also grew weary of TikTok, but it was hard to quit.

    “Everyone was using it, so I feel like there was a sense that you have to use it, you have to be on top of things, you have to know what’s going on. And I think that was stressful to me,” he said.

    Misinformation and misogyny ran rampant on TikTok, with accounts like those of Andrew Tate, the self-styled “alpha male” recently detained in Romania on allegations of human trafficking and rape, gaining popularity among boys at Poon’s school.

    “It’s just concerning how [these accounts] have so much impact on the youth, and it has so much grip on what we think and how it affects our behavior,” said Poon – though he added that misinformation is a major problem on all social media platforms, not just TikTok.

    Experts have long worried about the impact of TikTok on young people’s mental health, with one study claiming the app may surface potentially harmful content related to suicide and eating disorders to teenagers within minutes of them creating an account.

    In response to growing pressure, TikTok recently announced a one-hour daily screentime limit for users under 18, though users will be able to turn off this default setting.

    Anderson acknowledged some positives about TikTok, like open conversations about mental health. Still, she was glad when the app became inaccessible. Falling asleep became easier without the lure of TikTok. “I didn’t have the self control to get off it on my own,” she said.

    For Poon and his friend Ava Chan, also 15, TikTok’s disappearance sparked new beginnings.

    When the app left in 2020, they were doing online classes, isolated from friends and bored at home. At the time, Instagram Reels and YouTube Shorts had yet to arrive in Hong Kong.

    “We had to figure out how to use our time other than being on TikTok,” said Chan. “For us, that was exploring our passions more.”

    For both, that came in advocating for the neurodiverse community. They launched a club at school that spreads education and awareness about neurodiversity, as well as participating in volunteer activities with neurodiverse people.

    Both said it lent them a sense of purpose, and as time went on, they saw other benefits.

    Their friends, who would previously spend time filming and watching TikToks together, began having more face-to-face conversations. They noticed peers begin exercising outdoors more, which was made easier as Covid restrictions lifted. Their mental health improved.

    Of course, being teenagers, they’re not off social media entirely and use it as a tool to promote their club – but it’s far from the previous hours of scrolling. And while they occasionally wonder what’s happening on TikTok outside Hong Kong, the allure of it is lost when nobody else around them uses it either.

    “A lot of people, they’ve just kind of forgotten about it,” said Anderson. “People move to different platforms – or just move on.”

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  • Pentagon leak spotlights surprising interplay between gaming and military secrets | CNN Politics

    Pentagon leak spotlights surprising interplay between gaming and military secrets | CNN Politics

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    CNN
     — 

    The recent leak of classified US documents on social media platform Discord seemingly caught many at the Pentagon by surprise. But it wasn’t the first time that a forum popular with online gamers had hosted military secrets, underlining a major challenge for the US national security establishment and platforms alike.

    As recently as January 2023, someone on a forum for fans of the video game War Thunder reportedly published confidential information on an F-16 fighter jet. That followed reports of at least three other occasions since 2021 when War Thunder fans posted documents on British, French and Chinese tanks. These cases – which Axios also reported on in the context of the Discord leaks – typically involved users boasting of their inside knowledge of military equipment and claiming to want to make the game more realistic.

    Gaijin Entertainment, the company that produces War Thunder, took the posts down after forum moderators flagged them.

    The recent leaks on Discord exposed a shortcoming in how the US government alerts platforms that they are hosting sensitive or classified information, according to Discord’s top lawyer.

    There is currently “no structured process,” for the government to communicate whether documents posted on social media are classified or even authentic, Clint Smith, Discord’s chief legal officer, said in an April 14 statement that described classified military documents as a “significant, complex challenge” for Discord and other platforms.

    The episodes point to vexing challenges for social media platforms like Discord – where 21-year Air National Guardsman Jack Teixeira allegedly began posting classified information in December – and the US military, which has used Discord for recruiting.

    Discord and other platforms face a difficult balancing act in giving young gamers the space to be themselves while also detecting when they post illegal content.

    “A lot of these guys find their social circles in these online gaming spaces, and that can be great,” said Jennifer Golbeck, a professor at the University of Maryland’s College of Information Studies. “But if the culture of the platform shifts to rewarding things that you shouldn’t be doing, it can hard if you’re really invested in that that social group to give that up.”

    Teixeira allegedly posted the documents – which included sensitive US intelligence on the war in Ukraine – to a private Discord chat in an attempt to look after his online friends and keep them informed, one member of the chatroom has claimed.

    The Pentagon is trying to tap into online youth culture without it backfiring spectacularly, as it allegedly did with Teixeira.

    An Air Force Gaming program that allows service members to compete in video game leagues to, according to a Pentagon press release, “build morale and mental health resiliency,” has more than 28,000 members. The top of the Air Force Gaming website includes a link to join the program’s Discord channel.

    There were signs that Pentagon officials were growing wary of information young service members might share on Discord even before news of Teixeira’s alleged leak broke.

    “Don’t post anything in Discord that you wouldn’t want seen by the general public,” reads a pamphlet published by US Army Special Operations Command in March.

    That the warning came as classified documents allegedly shared by Teixeira sat on Discord appears to be entirely a coincidence; many US officials appeared unaware of the leak until news of it broke on April 6.

    “Past incidents show how hard it is to stop these leaks,” said Casey Brooks, an Army veteran and video game fan.

    “This is about maturity and how certain people seek value from interpersonal relationships and approval from peers and the competitive nature that gaming group members bond over,” Brooks told CNN.

    Classified or sensitive documents are also a unique problem for content moderators on social media sites.

    “With porn, you can at least have some kind of AI that will give a rough flag at the beginning that this looks vaguely like porn,” said Golbeck, the University of Maryland professor. “But what looks like a classified document? They’re just documents.”

    As social media platforms like Discord grapple with the challenges of detecting sensitive intelligence leaks online, current and former US officials worry that US adversaries like Russia may see an intelligence gathering opportunity.

    “If it’s not already happening, my guess would be the Russians have assessed that digging around in some of these obscure online forums … could bear fruit,” Holden Triplett, a former FBI official who worked at the US embassy in Moscow, told CNN.

    Though there is no evidence that Teixeira was approached by foreign agents, Triplett said a young generation of online gamers might be a ripe target for recruitment.

    “Ego and excitement have always been strong motivations to spy,” said Triplett, who is founder of security consultancy Trenchcoat Advisors. But the group of Discord users that included Teixeira “seemed particularly indifferent to national security concerns,” which is a vulnerability for the US government, Triplett said.

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  • Six months into Elon Musk’s Twitter: The fall of verification and birth of Twitter Blue in one very long chart | CNN Business

    Six months into Elon Musk’s Twitter: The fall of verification and birth of Twitter Blue in one very long chart | CNN Business

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    CNN
     — 

    In the six months since Elon Musk completed his acquisition of Twitter, the billionaire has turned the platform on its head by overhauling how it decides which accounts to verify.

    Once given out to authenticate a limited number of accounts from celebrities, government agencies and media organizations, the coveted check mark is now available for purchase through the company’s subscription service, Twitter Blue. The result: more checks and more confusion.

    There were at least 550,000 Twitter Blue subscribers as of April 23, just days after Musk stripped all users of legacy blue checks, according to estimates provided to CNN by Travis Brown, a Berlin-based software developer. By comparison, more than 400,000 accounts were verified with the legacy blue checks before the purge.

    But with Musk gifting some celebrities with the service, it’s unclear how many are actually paying customers. It’s also unclear how much more Twitter can grow subscriptions, which Musk has made central to his plan to boost Twitter’s revenue.

    The change to Twitter’s verification process is just one of many ways Musk has shaken the company’s core after taking the helm of Twitter in October. He eliminated over 80% of its staff and reshaped the site’s policies, drawing criticism for the impact these moves could have on safety and transparency. Many top advertisers have left the platform, and Musk valued it last month at around $20 billion, less than half of what he paid for it.

    But one of Musk’s boldest and biggest changes has been Twitter Blue. Touted as the successor to the old verification system, the subscription model lets anyone pay $8 per month for a blue badge and other features, like prioritized rankings in conversations and search.

    The blowback has been swift. Twitter Blue has stoked chaos and confusion. The program was initially paused only days after its launch when an account impersonating pharmaceutical company Eli Lilly and Company tweeted “insulin is free now,” causing the stock to nosedive.

    More recently, the purge of blue checks has led to a cultural change on the platform. Once a sought-after status symbol, many users find the blue badge is no longer cool. Last week, after the blue check began popping up on famous accounts, celebrities such as Lil Nas X and Chrissy Teigen vehemently denied paying for the service.

    Here’s a look back at the rise and fall of Twitter’s blue badge:

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  • TV and film writers are fighting to save their jobs from AI. They won’t be the last | CNN Business

    TV and film writers are fighting to save their jobs from AI. They won’t be the last | CNN Business

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    CNN
     — 

    By any standard, John August is a successful screenwriter. He’s written such films as “Big Fish,” “Charlie’s Angels” and “Go.” But even he is concerned about the impact AI could have on his work.

    A powerful new crop of AI tools, trained on vast troves of data online, can now generate essays, song lyrics and other written work in response to user prompts. While there are clearly limits for how well AI tools can produce compelling creative stories, these tools are only getting more advanced, putting writers like August on guard.

    “Screenwriters are concerned about our scripts being the feeder material that is going into these systems to generate other scripts, treatments, and write story ideas,” August, a Writers Guild of America (WGA) committee member, told CNN. “The work that we do can’t be replaced by these systems.”

    August is one of the more than 11,000 members of the WGA who went on strike Tuesday morning, bringing an immediate halt to the production of some television shows and possibly delaying the start of new seasons of others later this year.

    WGA is demanding a host of changes from the Alliance of Motion Picture and Television Producers (AMPTP), from an increase in pay to receiving clear guidelines around working with streaming services. But as part of their demands, the WGA is also fighting to protect their livelihoods from AI.

    In a proposal published on WGA’s website this week, the labor union said AI should be regulated so it “can’t write or rewrite literary material, can’t be used as source material” and that writers’ work “can’t be used to train AI.”

    August said the AI demand “was one of the last things” added to the WGA list, but that it’s “clearly an issue writers are concerned about” and need to address now rather than when their contact is up again in three years. By then, he said, “it may be too late.”

    WGA said the proposal was rejected by AMPTP, which countered by offering annual meetings to discuss advancements in the technology. August said AMPTP’s response shows they want to keep their options open.

    In a document sent to CNN responding to some of WGA’s asks, AMPTP said it values the work of creatives and “the best stories are original, insightful and often come from people’s own experiences.”

    “AI raises hard, important creative and legal questions for everyone,” it wrote. “Writers want to be able to use this technology as part of their creative process, without changing how credits are determined, which is complicated given AI material can’t be copyrighted. So it’s something that requires a lot more discussion, which we’ve committed to doing.”

    It added that the current WGA agreement defines a “writer” as a “person,” and said “AI-generated material would not be eligible for writing credit.”

    The writers’ attempt at bargaining over AI is perhaps the most high-profile labor battle yet to address concerns about the cutting-edge technology that has captivated the world’s attention in the six months since the public release of ChatGPT.

    Goldman Sachs economists estimate that as many as 300 million full-job jobs globally could be automated in some way by the newest wave of AI. White-collar workers, including those in administrative and legal roles, are expected to be the most affected. And the impact may hit sooner than some think: IBM’s CEO recently suggested AI could eliminate the need for thousands of jobs at his company alone in the next five years.

    David Gunkel, a professor at the department of communications at Northern Illinois University who tracks AI in media and entertainment, said screenwriters want clear guidelines around AI because “they can see the writing on the wall.”

    “AI is already displacing human labor in many other areas of content creation—copywriting, journalism, SEO writing, and so on,” he said. “The WGA is simply trying to get out-in-front of and to protect their members against … ‘technological unemployment.’”

    While film and TV writers in Hollywood may currently be leading the charge, professionals in other industries will almost certainly be paying attention.

    “There’s certainly other industries that need to be paying close attention to this space,” said Rowan Curran, an analyst at Forrester Research who focuses on AI. He noted that digital artists, musicians, engineers, real estate professionals and customer service workers will all feel the impact of generative AI.

    “Watch this #WGA strike carefully,” Justine Bateman, a writer, director and former actress, wrote in a tweet shortly after the strike kicked off. “Understand that our fight is the same fight that is coming to your professional sector next: it’s the devaluing of human effort, skill, and talent in favor of automation and profits.”

    AI has had a place in Hollywood for years. In the 2018 “Marvel Avengers Infinity Wars” film, the face of Thanos – a character played by actor Josh Brolin – was created in part with the technology.

    Crowd and battle scenes in films including the “Lord of the Rings” and “Meg” have utilized AI, and the most recent Indiana Jones used it to make Harrison Ford’s character appear younger. It’s also been used for color correction, finding footage more quickly during post production and making improvements such as removing scratches and dust from footage.

    But AI in screenwriting is in its infancy. In March, a “South Park” episode called “Deep Learning,” was co-written by ChatGPT and the tool was highly focused on in the plot (the characters use ChatGPT to talk to girls and write school papers).

    August said writers are largely willing to play ball with tools, as long as they’re used as launching pads or for research and writers are still credited and utilized throughout the production process.

    “Screenwriters are not luddites, and we’ve been quick to use new technologies to help us tell our stories,” August said. “We went from typewriters to word processors happily and it increased productivity. …. But we don’t need a magical typewriter that types scripts all by itself.”

    Because large language models are trained on text that humans have written before, and find patterns in words and sentences to create responses to prompts, concerns around intellectual property exist, too. “It is entirely possible for a [chatbot] to generate a script in the style of a particular kind of filmmaker or scriptwriter without prior consent of the original artist or the Hollywood studio that holds the IP for that material,” Gunkel said.

    For example, one could prompt ChatGPT to generate a zombie apocalypse drama in the style of David Mamet. “Who should get credited for that?” August said. “What happens if we allow a producer or studio executive to come up with a treatment or pitch or something that looks like a screenplay that no writer has touched?”

    For now, the legal landscape remains very much unsettled on the matter, with regulations lagging behind the rapid pace of AI development. In early April, the Biden administration said it is seeking public comments on how to hold artificial intelligence systems like ChatGPT accountable.

    “We can’t protect studios from their own bad choices,” August said. “We can only protect writers from abuses.”

    The strike, and the demands around AI specifically, come at a time when both the writers and the studios are feeling financial pain.

    Many of the businesses represented by AMPTP have seen drops in their stock price, prompting deep cost cutting, including layoffs. The need to manage costs, combined with addressing the fallout from the strike, might only make the companies feel more pressure to turn to AI for scriptwriting.

    “In the short term, this could be an effective way to circumvent the WGA strike, mainly because [large language models], which are considered property and not personnel, can be employed for this task without violating the picket line,” Gunkel said. Such an “experiment” could also show production studios whether it’s possible “to get by with less humans involved,” he said.

    But Joshua Glick, a visiting professor of film and electronic arts at Bard University, believes such a move would be ill-advised.

    “It would be a pretty aggressive and antagonistic move for studios to move forward with AI-generated scripts in terms of getting writers to come to the negotiating table because AI is such a crucial sticking point in the negotiations,” said Glick, who also co-created Deepfake: Unstable Evidence on Screen, an exhibition at the Museum of the Moving Image in New York.

    “At the same time, I think the result of those scripts would be pretty mediocre at best,” he said.

    However the studios react, the issue is unlikely to go away in Hollywood. Film and TV actors’ contracts are up in June, and many are worried about how their faces, bodies and voices will be impacted by AI, August said.

    “As writers, we don’t want tools to replace us but actors have the same concerns with AI, as do directors, editors and everyone else who does creative work in this industry,” he added.

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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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  • Exclusive: Senior US general ordered Twitter announcement of drone strike on al Qaeda leader that may have instead killed civilian | CNN Politics

    Exclusive: Senior US general ordered Twitter announcement of drone strike on al Qaeda leader that may have instead killed civilian | CNN Politics

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    CNN
     — 

    The senior general in charge of US forces in the Middle East ordered that his command announce on Twitter that a senior al Qaeda leader had been targeted by an American drone strike in Syria earlier this month – despite not yet having confirmation of who was actually killed in the strike, according to multiple defense officials.

    Nearly three weeks later, US Central Command still does not know whether a civilian died instead, officials said. CENTCOM did not open a review of the incident, officially known as a civilian-casualty credibility assessment report, until May 15 – twelve days after the strike. That review is ongoing.

    One defense official with direct knowledge of the situation told CNN that some of CENTCOM Commander Gen. Erik Kurilla’s subordinates urged him to hold off on the tweet until there was more clarity on who was actually killed.

    Two other officials denied that, and said they were not aware of any staffers voicing consternation or disagreement with the announcement.

    Either way, the statement ultimately posted to Twitter from the official CENTCOM Twitter account did not identify the supposed senior al Qaeda leader, raising more questions about what had occurred.

    “At 11:42 am local Syrian time on 3 May, US Central Command Forces conducted a unilateral strike in Northwest Syria targeting a senior Al Qaeda leader,” the tweet read. “We will provide more information as operational details become available.”

    The tweet has not been taken down and CENTCOM has not tweeted about the strike again.

    The episode raises questions about how thoroughly CENTCOM has implemented the military’s civilian harm mitigation policy – a process for preventing, mitigating and responding to civilian casualties caused by US military operations.

    The policy was developed in 2022 after a botched US drone strike in Kabul killed 10 civilians in August 2021.

    Pentagon spokesman Brig. Gen. Pat Ryder said on Tuesday that Defense Secretary Lloyd Austin is “absolutely” confident in the Defense Department’s civilian harm mitigation efforts.

    “In terms of CENTCOM’s strike, as you know, they conducted that strike on the third of May. They are investigating the allegations of civilian casualties,” Ryder said at a Pentagon news briefing. “So, you know, I think our record speaks for itself in terms of how seriously we take these. Very few countries around the world do that. The secretary has complete confidence that we will continue to abide by the policies that we put into place.”

    CENTCOM acknowledged last week following a Washington Post report questioning the strike that the operation may have resulted in a civilian casualty and said in a statement that it was “investigating” the incident. The civilian casualty review was not launched until a week after the Post began presenting information to CENTCOM suggesting that the strike had killed a civilian.

    CENTCOM still has not opened a formal investigation into the strike, known as a 15-6 investigation, defense officials told CNN. The officials said the civilian casualty review first needs to determine that a noncombatant was indeed killed in the strike. Then, a commander needs to decide that there are other unanswered questions remaining about the operation that require a more thorough investigation. A 15-6 investigation was launched less than a week after the errant Kabul strike.

    Defense officials told CNN that in the immediate aftermath of the strike, Kurilla and his staff had high confidence that they had killed the senior al-Qaeda leader, though they declined to say why they were so convinced. But they also knew it would likely take a few days to confirm the person’s identity definitively. The US has no military footprint in northwest Syria, an area still recovering from the effects of a devastating earthquake.

    But as the days passed, CENTCOM still could not determine the identity of who they had killed. Some defense officials considered that a red flag, they told CNN.

    By May 8, CENTCOM still had not confirmed the person’s identity, and began receiving information from the Washington Post that raised questions about whether a civilian had been killed, defense officials said. The Post’s information led CENTCOM to open a review into the strike, and whether it had killed a civilian, on May 15.

    There is still some disagreement within the administration about the identity of the person killed, defense officials told CNN. Some intelligence officials continue to believe that the target of the strike was a member of al-Qaeda, even if he wasn’t a senior leader. But there is a growing belief inside the Pentagon that the man – identified by his family as Loutfi Hassan Mesto, a 56-year-old father of ten – was a farmer with no ties to terrorism.

    Mesto’s family told CNN that he had been out grazing his sheep when he was killed. Loutfi never left his village during the Syrian uprisings and did not support any political faction, his brother said.

    Mohamed Sajee, a distant relative living in Qurqaniya, also told CNN that Loutfi was never known to be in favor or against the Syrian regime.

    “It’s impossible that he was with al Qaeda, he doesn’t even have a beard,” he said.

    The Syrian Civil Defense, also known as the White Helmets, told CNN they arrived on the scene of the strike after being contacted on their local emergency number.

    “The team noticed only one crater caused by the missile, which was next to the man’s body,” the White Helmets said, also confirming that the man had been grazing his sheep.

    “When the team arrived, his wife, neighbors, and other people were at the location,” the group added.

    The White Helmets tweeted on May 3 that they had recovered the body of Mesto, who they described as “a civilian aged 60” who was killed in a missile strike while grazing sheep. CENTCOM was aware of the White Helmets’ tweet, officials said, but the group’s information was not considered solid enough yet to open a review.

    The May 3 incident bears a stunning similarity to another CENTCOM operation: a US drone strike in Kabul during the closing days of the withdrawal from Afghanistan, which killed 10 Afghan civilians, including 7 children. The Pentagon initially claimed it had eliminated an ISIS-K threat and defended the operation for weeks, with Joint Chiefs Chair Gen. Mark Milley going as far as to call it a “righteous” strike in a Pentagon briefing two days later.

    A suicide bombing at Kabul’s international airport three days earlier, which killed 13 US service members, had added pressure on CENTCOM to act against any potential threats, and officials believed at the time that another attack was imminent.

    Austin ultimately decided no one would be punished over the botched operation, even as he instructed Central Command and Special Operations Command to improve policies and procedures to prevent civilian harm more effectively.

    Austin committed to adjusting Defense Department policies to better protect civilians, even establishing a civilian protection center of excellence in 2022.

    “Leaders in this department should be held to account for high standards of conduct and leadership,” Austin said at the time.

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  • Twitter’s head of trust and safety says she has resigned | CNN Business

    Twitter’s head of trust and safety says she has resigned | CNN Business

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    Twitter’s head of trust and safety Ella Irwin told Reuters on Thursday that she has resigned from the social media company.

    In the role, Irwin oversaw content moderation, but the company has faced criticism for lax protections against harmful content since billionaire Elon Musk acquired it in October.

    Irwin’s departure also comes as the platform has struggled to keep advertisers on it, mainly as brands have been wary of appearing next to unsuitable content.

    Musk announced earlier this month that he hired Linda Yaccarino, former NBCUniversal advertising chief, to become Twitter’s new CEO.

    Fortune earlier reported that Irwin’s internal Slack account appeared to be deactivated.

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  • What the chaos at Twitter means for the future of social movements | CNN Business

    What the chaos at Twitter means for the future of social movements | CNN Business

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    Editor’s Note: The CNN Original Series “The 2010s” looks back at a turbulent era marked by extraordinary political and social upheaval. New episodes air at 9 p.m. ET/PT Sundays.



    CNN
     — 

    When thousands of Egyptians marched through the streets during the Arab Spring of 2011, they had a tool at their disposal that earlier social movements didn’t: Twitter.

    A key group of activists used the platform to form networks and organize protests against the authoritarian regime, while many more demonstrators used it to disseminate information and images from the ground for the rest of the world to see. Months later, organizers from the Occupy Wall Street movement took to Twitter to coordinate protests in New York and beyond.

    Twitter fostered public conversation around the Black Lives Matter movement after the 2014 police killing of Michael Brown in Ferguson, Missouri, and again after the 2020 police killing of George Floyd. It amplified #MeToo in the aftermath of the sexual assault allegations against Hollywood producer Harvey Weinstein, and catapulted other revolutionary movements around the world to global attention.

    “You can’t underestimate the impact of Twitter to social movements,” Amara Enyia, manager of policy and research for the Movement for Black Lives, told CNN.

    Twitter has often been heralded as a democratizing force, bringing previously marginalized voices to the forefront and giving the public a platform to demand accountability from leaders. (It has also enabled the spread of misinformation, extremist ideas and abusive content.)

    But since Elon Musk acquired Twitter last year and the platform plunged into chaos, some organizers and digital media experts have been bracing for the impact that his controversial policy changes and mass layoffs may have on social movements going forward.

    Though Twitter has often been referred to as a public square, some of Musk’s recent moves challenge that description.

    Through Twitter, organizers and political groups have had a level of direct access to policymakers and leaders that wouldn’t have been possible in person, said Rachel Kuo, an assistant professor of media and cinema studies at the University of Illinois, Urbana-Champaign. Verified activists were able to promote certain messages that the algorithm then pushed to the top of users’ feeds, organizers could launch campaigns that caught the attention of high-profile figures and the public could follow along for real-time updates.

    “There are now issues in how people see Twitter as a source of information and a source of political community,” said Kuo, whose research focuses on race, social movements and digital technologies. “It isn’t seen in the same way anymore.”

    Elon Musk's controversial policy changes at Twitter could have implications for social movements, some activists say.

    Musk upended traditional Twitter verification and turned it into a pay-for-play system, leading to the impersonation of government accounts and the spread of fake images. For organizers who opt not to pay the monthly subscription fee for a blue check, that also means a loss of credibility and visibility, Kuo added.

    Twitter, which has cut much of its public relations team under Musk, did not respond to a request for comment.

    Twitter’s role in information-sharing has been disrupted in other ways, too.

    The platform has been plagued by technical glitches after mass layoffs and departures at the company, frustrating many users. People have also reported that the “for you” timeline is showing them content they aren’t interested in.

    As a result of these issues and others, some are leaving Twitter altogether – more than 32 million users are projected to exit the platform in the two years following Musk’s takeover, according to a December 2022 forecast from the market research agency Insider Intelligence. (Twitter reported having 238 million monetizable daily active users last year before Musk acquired it.)

    With fewer people on Twitter, the platform becomes less centralized and the information landscape more fractured, said Sarah Aoun, a privacy and security researcher who works on cybersecurity for the Movement for Black Lives. That makes it harder for activists to connect, exchange tactics and build solidarity in the way they once did.

    Protesters in Cairo gather in Tahrir Square in November 2011.

    Musk’s approach to content moderation has also made Twitter a more hostile environment, Aoun said. Twitter has never been a completely safe space for marginalized voices – women, people of color, LGBTQ people and other vulnerable groups have long been targets of online harassment and abuse – but reports from the Center for Countering Digital Hate and Anti-Defamation League indicate an increase in hate speech on the platform under Musk’s leadership. (Musk has previously pushed back at that characterization by focusing on a different metric.)

    Some are also disillusioned over Musk’s decision to reinstate users who were previously suspended for violating the platform’s rules, including former President Donald Trump and GOP Rep. Marjorie Taylor Greene.

    “The lack of verification, the mass exodus, the inability to coordinate the way that we used to be able to coordinate and the content moderation (gutting) makes it a very difficult platform to be on at the moment,” Aoun said.

    Musk has stepped back as Twitter’s CEO, a role now held by former NBCUniversal marketing executive Linda Yaccarino. But he will maintain significant control over the platform as the company’s owner, executive chairman and chief technology officer.

    The changes at Twitter have prompted some activists and organizers to reassess their relationships with the platform.

    Rich Wallace, executive director of the Chicago-based organization Equity and Transformation (EAT), said that previously, he used to see robust engagement on tweets about social injustice or racial inequity, whether it was from those who agreed with him or didn’t. Now, he finds that substantive posts barely get traction as opposed to tweets he considers more mundane.

    Wallace said his organization, which seeks to build social and economic equity for Black workers in the informal economy, still shares information about community events on Twitter, but the potential to find new allies or engage in meaningful conversation on the platform is largely a thing of the past.

    Twitter is no longer a space for education and community building that it once was, Wallace said. It’s a shift in how he once viewed the platform, but he isn’t especially concerned. For his organization, it simply means a re-emphasis on the grassroots, in-person work they were already doing.

    People raise their fists in June 2020 as they protest the police killing of George Floyd.

    “As organizers, we’ve been creative in how we organize around barriers,” he said. “This is just one of the newer barriers that we have to assess and organize through.”

    As Kuo sees it, the ways that the changes at Twitter will affect organizing and activism will vary widely. Hyperlocal community organizers or those who work with populations that don’t speak English aren’t typically using Twitter in their day-to-day work, and so the recent shifts likely won’t affect them drastically. But she predicts that mid-to-large nonprofit organizations with communications staff might be rethinking their strategy on the platform.

    “It’s very dependent on organizational structure, form, strategies for change and political vision,” Kuo said.

    Enyia said that on a personal level, she finds that she’s engaging with people on Twitter less often and moreso using the platform to keep up with news. But in her advocacy work with the Movement for Black Lives, it remains an important tool.

    “For us, its utility is in the fact that it creates more access points to our policy platform, to the issues that we’re advocating on,” she said. “And in that regard, it’s still very, very useful.”

    When Musk first took over Twitter, some organizers and activists flocked to other alternatives, such as Mastodon or Bluesky (an app backed by Twitter co-founder and former CEO Jack Dorsey).

    Neither appears to be fulfilling the same purpose that Twitter once did, Aoun and others said. Mastodon and Bluesky are decentralized and fewer people are using them, making it more difficult to build community. And while their numbers are growing, they’re still far smaller than Twitter.

    The Bluesky app is seen on a phone and laptop in June 2023.

    In the case of Mastodon, there are privacy and security issues that concern some activists. Because the social network allows users to join different servers run by various groups and individuals, Aoun said “the privacy, security and content moderation is basically as good as the person behind the server.” Twitter – at least before Musk took over – had dedicated privacy and security teams, offering more transparency about how their systems worked.

    Some activists are using popular social networks such as Instagram and TikTok, but the visual nature of those platforms versus the text-based medium of Twitter changes how people are able to interact and engage with each other, Kuo said.

    Twitter has been an incredibly powerful tool for social movements, Enyia said. But ultimately, the platform is just that – a tool.

    “There is no panacea for just the nuts and bolts work that it takes to meet people, to engage people, to organize and talk to people,” Enyia said. “So even if we recognize that social media is a tool, we don’t put all of our eggs in that basket.”

    Social media platforms come and go, and the same could happen to Twitter. So while Enyia’s organization continues to use the platform for its own ends, it’s prepared for a reality in which Twitter is less relevant.

    “We have to stay on top of it to make sure that the tools are serving their purpose as it relates to our work,” Enyia said. “But then we have to be ready to evolve or to move on or to adapt to different tools when it becomes clear that that’s the direction we have to go.”

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  • First on CNN: New bipartisan bill in Senate could address TikTok security concerns without a ban | CNN Business

    First on CNN: New bipartisan bill in Senate could address TikTok security concerns without a ban | CNN Business

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    CNN
     — 

    Five US senators are set to reintroduce legislation Wednesday that would block companies including TikTok from transferring Americans’ personal data to countries such as China, as part of a proposed broadening of US export controls.

    The bipartisan bill led by Oregon Democratic Sen. Ron Wyden and Wyoming Republican Sen. Cynthia Lummis would, for the first time, subject exports of US data to the same type of licensing requirements that govern the sale of military and advanced technologies. It would apply to thousands of companies that rely on routinely transferring data from the United States to other jurisdictions, including data brokers and social media companies.

    The legislation comes amid a flurry of proposals to regulate how TikTok and other companies may handle the sensitive and valuable data of Americans — not just their names, email addresses and phone numbers but also potentially their behavioral data such as location information, search and browsing histories and personal interests.

    “Massive pools of Americans’ sensitive information — everything from where we go, to what we buy and what kind of health care services we receive — are for sale to buyers in China, Russia and nearly anyone with a credit card,” Wyden said in a statement. “Our bipartisan bill would turn off the tap of data to unfriendly nations, stop TikTok from sending Americans’ personal information to China, and allow nations with strong privacy protections to strengthen their relationships.”

    Lawmakers have scrutinized TikTok, in particular, for its ties to China through its parent company, ByteDance. Much of the existing legislation addressing TikTok at the federal and state level has focused on bans of the app. But Wyden’s bill subjecting US data to export licensing could address the issue without wading into the thorny legal issues surrounding a potential ban, an aide said, and simultaneously avoid giving broad new powers to the executive branch.

    Wednesday’s legislation, known as the Protecting Americans’ Data From Foreign Surveillance Act, does not identify TikTok by name. Instead, it directs the Commerce Department to maintain lists of countries that are considered trustworthy and untrustworthy for the purposes of receiving US data.

    There would be no restrictions applied to personal information transferred to trustworthy states, and no restrictions on individual internet users’ own transfers of their personal data, but companies seeking to transfer Americans’ personal information to countries outside of the trustworthy list would be required to apply for a license. Transfers to countries on the untrustworthy list would be automatically prohibited unless companies could prove they have a valid reason for a transfer, according to a copy of the bill text reviewed by CNN.

    Factors the Commerce Department would need to consider when building its lists include whether a country has enough of its own privacy safeguards — reflected in laws, regulations and norms — to prevent sensitive US data from being transferred further to one of the untrustworthy countries. Another factor includes whether a country has engaged in “hostile foreign intelligence operations, including information operations, against the United States,” language that appears to refer to China, Russia and other foreign adversaries.

    The Commerce Department would also be authorized to identify the specific types of information that would be subject to licensing requirements, based on their sensitivity, as well as how much information a company could transfer to a non-approved country before needing a license.

    A previous version of the bill was introduced last summer. The newest version, the Wyden aide said, includes fresh language that targets TikTok indirectly by prohibiting data transfers from one company to a parent company that may receive data requests by a hostile foreign government, when the company holds data on more than one million users.

    TikTok has faced criticism from US officials who say the company’s links to China pose a national security risk. TikTok has said it has never received a request for US user data from the Chinese government and would never comply with such a request.

    TikTok has also said it is working on securing US user data by storing it on servers controlled by Oracle and by establishing special US access protocols to prevent unauthorized use of the information.

    Should TikTok abide by its plan, known as Project Texas, Wednesday’s legislation would not affect the company, according to the Wyden aide, but if TikTok or ByteDance did seek to move US user data to China, then those transfers would potentially be subject to the proposed Commerce Department restrictions.

    Congress has made several attempts in recent months to address data transfers to foreign adversaries. In February, House lawmakers advanced a bill that would all but require the Biden administration to ban TikTok over national security concerns about the app. The next month, Senate lawmakers introduced a bill that would give the Commerce Department wide latitude to assess all foreign-linked technologies and to take virtually any measures, up to and including imposing a nationwide ban, to restrict their domestic use.

    Those bills have provoked a backlash from industry and civil liberties groups, as well as among some fellow lawmakers. Among the concerns are their potential impact on Americans’ First Amendment rights and a potential conflict with laws facilitating the free flow of media to and from foreign rivals. Other concerns include whether the breadth of the legislation could give the US government too much power and whether it could end up harming industries that are not the target of the legislation.

    The new bill includes language requiring more input from privacy, civil rights and civil liberties experts, said Justin Sherman, founder and CEO of the research firm Global Cyber Strategies and a senior fellow at Duke University’s Sanford School of Public Policy who has seen the bill.

    “You don’t load up Excel sheets in a shipping crate and send them to a foreign port,” Sherman said, but data transfers are a “hugely and often ignored problem in national security.”

    “We need to get beyond just looking at a couple mobile apps and platforms, and start looking at all parts of this ecosystem, including how data gets sold and transferred,” Sherman added, “and this bill takes an important look at that issue.”

    Other senators co-sponsoring Wednesday’s legislation include Rhode Island Democratic Sen. Sheldon Whitehouse, Tennessee Republican Sen. Bill Hagerty, New Mexico Democratic Sen. Martin Heinrich and Florida Republican Sen. Marco Rubio. A companion bill in the House will also be unveiled Wednesday, sponsored by Ohio Republican Rep. Warren Davidson and California Democratic Rep. Anna Eshoo.

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  • A lawsuit by TikTok users challenging Montana’s ban is being funded by the social media company itself | CNN Business

    A lawsuit by TikTok users challenging Montana’s ban is being funded by the social media company itself | CNN Business

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    CNN
     — 

    A high-profile lawsuit brought by TikTok users and creators last month challenging Montana’s statewide ban against the short-form video app is being funded by the social media giant itself, the company told CNN on Wednesday.

    TikTok has been covering legal fees for the group of five TikTok creators, said Jodi Seth, a TikTok spokesperson, separately from the company’s own lawsuit to block the state’s new law targeting the app over national security concerns.

    “We support our creators through various programs and have an ongoing dialogue about their presence on TikTok,” Seth said in a statement. “Throughout this process, many creators have expressed major concerns both privately and publicly about the potential impact of the Montana law on their livelihoods. We will support our creators in fighting for their constitutional rights.”

    TikTok’s involvement in the creators’ suit was first reported this week by The New York Times, weeks after the initial court case was filed. The company’s role in the litigation had not been previously known.

    The suit by the TikTok creators was the first to challenge Montana’s law banning TikTok from being offered within state lines and establishing penalties for the company and for app stores that violate the law. Legal experts have said the legislation, which is not set to take effect until January, raises constitutional issues and may well be practically unenforceable even if the law is upheld.

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  • China just played a trump card in the chip war. Are more export curbs coming? | CNN Business

    China just played a trump card in the chip war. Are more export curbs coming? | CNN Business

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    Hong Kong
    CNN
     — 

    A trade war between China and the United States over the future of semiconductors is escalating.

    Beijing hit back Monday by playing a trump card: It imposed export controls on two strategic raw materials, gallium and germanium, that are critical to the global chipmaking industry.

    “We see this as China’s second, and much bigger, counter measure to the tech war, and likely a response to the potential US tightening of [its] AI chip ban,” said Jefferies analysts. Sanctioning one of America’s biggest memory chipmakers, Micron Technology

    (MU)
    , in May was the first, they said.

    Here’s what you need to know about gallium and germanium, how they could play into the chip war and whether more countermeasures could be coming.

    Last October, the Biden administration unveiled a set of export controls banning Chinese companies from buying advanced chips and chip-making equipment without a license.

    Chips are vital for everything from smartphones and self-driving cars to advanced computing and weapons manufacturing. US officials have talked about the move as a measure to protect national security interests.

    But it didn’t stop there. For the curbs to be effective, Washington needed other key suppliers, located in the Netherlands and Japan, to join. They did.

    China eventually retaliated. In April, it launched a cybersecurity probe into Micron before banning the company from selling to Chinese companies working on key infrastructure projects. On Monday, Beijing announced the restrictions on gallium and germanium.

    Gallium is a soft, silvery metal and is easy to cut with a knife. It’s commonly used to produce compounds that are key materials in semiconductors and light-emitting diodes.

    Germanium is a hard, grayish-white and brittle metalloid that is used in the production of optical fibers that can transmit light and electronic data.

    The export controls have drawn comparisons with China’s reported attempts in early 2021 to restrict exports of rare earths, a group of 17 elements for which China controls more than half of the global supply.

    Gallium and germanium do not belong to this group of minerals. Like rare earths, they can be expensive to mine or produce.

    This is because they are usually formed as a byproduct of mining more common metals, primarily aluminum, zinc and copper, and processed in countries that produce them.

    China is the world’s leading producer of both gallium and germanium, according to the US Geological Survey. The country accounted for 98% of the global production of gallium, and 68% of the refinery production of germanium.

    “The economies of scale in China’s extensive and increasingly integrated mining and processing operations, along with state subsidies, have allowed it to export processed minerals at a cost that operators elsewhere can’t match, perpetuating the country’s market dominance for many critical commodities,” analysts from Eurasia Group said on Tuesday.

    Shares of Chinese producers of the two raw materials surged by 10% on Tuesday.

    Beyond China, Australian rare earths producers also advanced, as investors expected Beijing might extend export curbs to that group of strategically important minerals. Lynas Rare Earths

    (LYSCF)
    rose 1.5%.

    The United States is dependent on China for these the two critical elements. It imported more than 50% of the gallium and germanium it used in 2021 from the country, the US Geological Survey showed.

    Eurasia Group analysts described China’s export controls as a “warning shot.”

    “It is a shot across the bow intended to remind countries including the United States, Japan, and the Netherlands that China has retaliatory options and to thereby deter them from imposing further restrictions on Chinese access to high-end chips and tools,” Eurasia Group said in a research note.

    Chinese authorities may also intend to use its control over these niche metals as a possible bargaining chip in discussions with US Treasury Secretary Janet Yellen, who is scheduled to visit Beijing later this week.

    Jefferies analysts said the timing of the announcement was unlikely to be a casual decision.

    “It gives the US at least two days to digest and come up with a well-considered response,” they said.

    However, the move is not considered “a death blow” to the United States and its allies.

    China may be the industry leader, but there are alternative producers, as well as available substitutes for both minerals, the Eurasia Group analysts pointed out.

    The United States also imports a fifth of its gallium from the United Kingdom and Germany and buys more than 30% of its germanium from Belgium and Germany.

    That’s definitely possible, a former senior Chinese official has warned.

    The curbs announced this week are “just the start,” Wei Jianguo, a former deputy commerce minister, told the official China Daily on Wednesday, adding China has more tools in its arsenal with which to retaliate.

    “If the high-tech restrictions on China become tougher in the future, China’s countermeasures will also escalate,” he was quoted as saying.

    Analysts believe this too. Rare earths, which are not difficult to find but are complicated to process, are also critical in making semiconductors, and could be the next target.

    “If this action doesn’t change the US-China dynamics, more rare earth export controls should be expected,” Jefferies analysts said.

    However, analysts from Eurasia Group warned that restricting exports is a “double-edged sword.”

    Past attempts by China to leverage its dominance in rare earths have reduced availability and raised prices. Higher prices have spurred greater competition by making mining and processing ventures outside of China more cost-competitive, they said.

    China cut its rare earths export quota in 2010 amid tensions with the United States.

    That resulted in greater efforts by companies outside of the country to produce the metals. US data showed that China’s global market share dropped from 97% in 2010 to about 60% in 2019.

    “Imposing export restrictions risks reducing market dominance,” the Eurasia Group analysts said.

    CNN’s Hanna Ziady and Xiaofei Xu contributed to reporting.

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  • Legendary computer hacker Kevin Mitnick dies at 59 | CNN Business

    Legendary computer hacker Kevin Mitnick dies at 59 | CNN Business

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    CNN
     — 

    Kevin Mitnick, one of the most famous hackers in the history of cybersecurity, died over the weekend at age 59 after a more than year-long battle with pancreatic cancer, his family said in a published obituary.

    Before his death on July 16, Mitnick’s hacking sprees were legendary, and multiple films were inspired by him.

    The first, “WarGames” starring Matthew Broderick, was partially based on allegations that Mitnick successfully hacked the computer systems at North American Aerospace Defense Command as a teenager. He denied ever having done so.

    Mitnick’s restless curiosity caught up with him when he was arrested for stealing $1 million in proprietary software from Digital Equipment Corporation in 1988. Mitnick was sentenced to a year in prison and three years of probation, but a new arrest warrant was issued in 1995 for violating that probation. Mitnick went on the run, breaking into the computer systems of multiple corporations, cell phone companies, and educational institutions, according to the federal indictment against him.

    Through it all, Mitnick and his defenders insisted he was harmless, not actually trying to hurt anyone or pursue financial gain.

    “I was an old-school hacker, doing it for intellectual curiosity,” Mitnick told Wired magazine in a 2008 interview. But federal authorities were so concerned about his capabilities that when he was incarcerated again in 1995, Mitnick told CNN he was held in solitary confinement for a time out of concern that even proximity to a telephone could allow him to continue hacking.

    Mitnick and federal prosecutors agreed to a plea deal in 1999 to seven criminal counts, including wire fraud and causing damage to computers. The deal included a 46-month prison sentence and a ban on being “employed in any capacity wherein he has access to computers or computer-related equipment or software” during a period of probation, but he was released in 2000 due to credit for time already served.

    Mitnick published a memoir on his hacking career, “Ghost in the Wires: My Adventures as the World’s Most Wanted Hacker,” in 2011.

    Following his prison term, Mitnick became a white-hat hacker, using his expertise to legally help businesses track people trying to break into their systems. For the past decade, he was the chief hacking officer and partial owner of the tech security firm KnowBe4, founded by his close friend and business partner, Stu Sjouwerman.

    “I made some really stupid mistakes in the past as a younger man that I regret,” Mitnick told CNN in a 2005 interview. “I’m lucky that I’ve been given a second chance and that I could use these skills to help the community.”

    “Kevin was a dear friend to me and many of us here at KnowBe4,” Sjouwerman said in a statement. “He is truly a luminary in the development of the cybersecurity industry, but mostly, Kevin was just a wonderful human being and he will be dearly missed.”

    A memorial for Mitnick is scheduled for August 1 in Las Vegas, his company said. He is survived by his wife Kimberley, who is pregnant with their first child, the family said.

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