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

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

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    New York
    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  • Four takeaways from Walter Isaacson’s biography of Elon Musk | CNN Business

    Four takeaways from Walter Isaacson’s biography of Elon Musk | CNN Business

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    CNN
     — 

    “You’ll never be successful,” Errol Musk in 1989 told his 17-year-old son Elon, who was then preparing to fly from South Africa to Canada to find relatives and a college education.

    That’s one of the scenes Walter Isaacson paints in his 670-page biography of Elon Musk, who is now the richest person who ever lived. The biography allows readers new glimpses into the private life of the entrepreneur who popularized electric vehicles for the masses and landed rocket boosters hurtling back to Earth so they could be reused.

    But Musk’s public statements and actions have become increasingly unhinged, filing and threatening lawsuits against nonprofits that fight hate speech and allowing some of the internet’s worst actors to regain their platforms.

    Isaacson portrays Musk as a restless genius with a turbulent upbringing on the cusp of launching a new AI company along with his five other companies.

    Musk allowed Isaacson to shadow him for two years but exercised no control over the biography’s contents, the author said.

    Here are four key takeaways.

    Musk’s upbringing and father haunt him

    Isaacson’s book attributes much of Musk’s drive to his upbringing. He recounts the emotional scars inflicted on Musk by his father, which, Isaacson writes, caused Musk to become “a tough yet vulnerable man-child with an exceedingly high tolerance for risk, a craving for drama, an epic sense of mission and a maniacal intensity that was callous and at times destructive.”

    Musk decided to live with his father from age 10 to 17, enduring what Musk and others describe as occasional but regular verbal taunts and abuse. Musk’s sister, Tosca, said Errol would sometimes lecture his children for hours, “calling you worthless, pathetic, making scarring and evil comments, not allowing you to leave.”

    Elon Musk became estranged from his father, though he has occasionally supported his father financially. In a 2022 email sent to Elon Musk on Father’s Day, Errol Musk said he was freezing and lacking electricity, asking his son for money.

    In the letter, Errol made racist comments about Black leaders in South Africa. “With no Whites here, the Blacks will go back to the trees,” he wrote.

    Elon Musk has said that he opposes racism and discrimination, but hate speech has flourished on X, formerly known as Twitter, since he purchased it 11 months ago, according to the Anti-Defamation League. Musk threatened to sue the ADL for defamation last week, arguing that the nonprofit’s statements have caused his company to lose significant advertising revenue.

    Isaacson reported that Errol, in other emails, denounced Covid as “a lie” and attacked Dr. Anthony Fauci, the United States’ former top infectious disease expert who played a prominent role in the government’s fight against the pandemic.

    Elon Musk, similarly, has criticized Fauci and raised many questions about public health policy during the pandemic. But he has said he supports vaccination, even if he doesn’t believe the shots should be mandated.

    Musk’s fluid family and obsession with population

    Musk has a fluid mix of girlfriends, ex-wives, ex-girlfriends and significant others, and he has many children with multiple women. Isaacson’s book revealed Musk had a third child (Techno Mechanicus) with the musician Grimes in 2022, and Musk confirmed the revelation Sunday.

    Musk has frequently stated that humans must be a multiplanetary species, warning space exploration will ensure the future of humanity. He similarly has spoken numerous times that people need to have more children.

    “Population collapse due to low birth rates is a much bigger risk to civilization than global warming,” Musk said last year.

    Musk has referred to his desire to increase the global population as an explanation for his unique family situation.

    The book reports that Musk encouraged employees such as Shivon Zilis, a top operations officer at his Neuralink company, to have many children. “He feared that declining birthrates were a threat to the long-term survival of human consciousness,” Isaacson writes.

    Although the book presents their relationship as a platonic work friendship, Musk volunteered to donate sperm to Zilis. She agreed and had twins in 2021 via in vitro fertilization; she did not tell people who the biological father was.

    Zilis and Grimes were friendly, but Musk did not tell Grimes about the twins, according to the book.

    Musk asked Zilis if her twins might like to take his last name. Isaacson reports that Grimes was upset in 2022 when she learned the news that Musk had fathered children with Zilis.

    “Doing my best to help the underpopulation crisis,” Musk tweeted at the time, trying to defuse the tension. “A collapsing birth rate is the biggest danger civilization faces by far.”

    One of Musk’s children, Jenna, often criticized her father’s wealth specifically and capitalism broadly. In 2022, she disowned her father, which Isaacson reports saddened Musk.

    Isaacson reports that Musk’s fractured relationship with Jenna, who is trans, partly led to Musk’s rightward turn toward libertarianism and questioning what he considers the “woke-mind-virus, which is fundamentally antiscience, antimerit, and antihuman.”

    Musk has called into question the use of alternate gender pronouns and made numerous statements some critics consider to be anti-trans.

    “I absolutely support trans, but all these pronouns are an esthetic nightmare,” Musk posted in 2020.

    But in December 2020 he also posted a tweet, since deleted, that said “when you put he/him in your bio” alongside a drawing of an 18th century soldier rubbing blood on his face in front of a pile of dead bodies and wearing a cap that read “I love to oppress.”

    Late last year, he tweeted: “My pronouns are Prosecute/Fauci.”

    The purchase of his favorite social media platform, gutting the staff and tinkering with policies and branding have taken time and resources away from Musk’s other companies and projects, Isaacson reports.

    “I’ve got a bad habit of biting off more than I can chew,” Musk told Isaacson at one point.

    After a protracted legal battle over his decision to purchase Twitter, Musk said he regained his enthusiasm for taking over the company when he realized that he wanted to prevent a world where people silo off into their own echo chambers and would prefer a world of civil discourse.

    But Isaacson notes “he would end up undermining that important mission with statements and tweets that ended up chasing off progressives and mainstream media types to other social networks.”

    Musk team members, such as his business manager Jared Birchall, his lawyer Alex Spiro and his brother Kimbal, sometimes try to restrain Musk from sending text messages or tweets that could create legal or economic peril, according to the book. Some friends convinced him to place his phone in a hotel safe overnight on one occasion, before Musk summoned hotel security to open the safe for him.

    During Christmas in 2022 with his brother, Kimbal warned Elon about how fast he was making enemies. “It’s like the days of high school, when you kept getting beaten up,” he said. Kimbal stopped following Elon on Twitter after his brother’s tweets about Fauci and other conspiracies. “Stop falling for weird s—.”

    Are robocars, an AI company and a robot called Optimus on tap?

    Musk continues moving forward on new engineering projects. Since 2021, Musk has been working on a “humanoid” robot called Optimus that walks on two legs instead of like four-legged robots coming from other labs. He unveiled an early version of the Optimus robot in September of 2022. Musk told engineers that humanoid robots will “uncork the economy to quasi-infinite levels,” according to Isaacson, by doing jobs humans find dangerous or repetitive.

    Some of Musk’s top engineers are also working on a “robotaxi,” a driverless vehicle that shows up like an Uber. This past summer, he spent hours each week preparing new factory designs in Texas to produce the next-generation Tesla cars that would look similar to Tesla’s cybertruck.

    Musk is also starting his own AI company called X.AI, which he told Isaacson will compete with Google, Microsoft and other companies surging ahead in the past year with public AI projects. Musk had co-founded OpenAi with Sam Altman in 2015 and contributed $100 million to the non-profit. He became angry when Altman converted the project into a for-profit. Musk also ended a friendship with Larry Page when the two disagreed on AI. According to the book, Musk believes he has a better vision for AI and humanity and thinks the data he owns from Tesla and Twitter will be an asset to his next AI plans.

    “Could you get the rockets to orbit or the transition to electric vehicles without accepting all aspects of him, hinged and unhinged?” Isaacson asks in the last chapter.

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  • US says it has no evidence that Huawei can make advanced smartphones ‘at scale’ | CNN Business

    US says it has no evidence that Huawei can make advanced smartphones ‘at scale’ | CNN Business

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


    Hong Kong
    CNN
     — 

    Commerce Secretary Gina Raimondo says the US government has no evidence that Huawei can produce smartphones with advanced chips “at scale,” as it continues to investigate how the sanctioned Chinese manufacturer made an apparent breakthrough with its latest flagship device.

    On Tuesday, Raimondo told US lawmakers that she was “upset” by news of the launch of Huawei’s Mate 60 Pro during her visit to China last month.

    “The only good news, if there is any, is we don’t have any evidence that they can manufacture 7-nanometer [chips] at scale,” she told a US House of Representatives hearing.

    “Although I can’t talk about any investigations specifically, I promise you this: every time we find credible evidence that any company has gone around our export controls, we do investigate.”

    Analysts who have examined the smartphone said it represented a “milestone” achievement for China, suggesting Huawei may have found a way to overcome American export controls.

    US officials have long argued that the company poses a risk to US national security, using it as grounds to restrict trade with the company. Huawei has vehemently denied the claims.

    TechInsights, a research organization that specializes in semiconductors and took the phone apart for analysis, says it includes a 5G Kirin 9000s processor developed by China’s leading chipmaker, Semiconductor Manufacturing International Corporation (SMIC).

    That surprised many because SMIC, a partially state-owned Chinese company, has also been subject to US export restrictions for years. It has not responded to previous requests for comment from CNN.

    TechInsights also found two chips belonging to SK Hynix, a South Korean chipmaker, inside the handset.

    A SK Hynix spokesperson told CNN earlier this month that it was aware of the issue and investigating how that was possible, since the South Korean firm “no longer does business with Huawei” because of US export controls.

    Huawei declined to comment on the capabilities and components of its phone.

    Raimondo said Tuesday that US officials were “trying to use every single tool at our disposal … to deny the Chinese an ability to get intellectual property to advance their technology in ways that can hurt us.”

    In 2019, Huawei was added to the US “entity list,” which restricts exports to select organizations without a US government license. The following year, the US government expanded on those curbs by seeking to cut Huawei off from chip suppliers that use US technology.

    That left the company, once the world’s second largest smartphone seller, in bad shape.

    As of the second quarter of 2023, Huawei was no longer in the top five of mobile phone vendors in China, let alone globally, according to Counterpoint Research.

    But its new phone is a big help for the company — and may pose a challenge to Apple’s (AAPL) market share in China, according to Ivan Lam, a senior analyst at Counterpoint.

    Huawei is scheduled to hold a product launch event next Monday, where new phones are expected to be the main focus, according to Toby Zhu, a Canalys mobility analyst.

    Other devices, like tablets or earphones, may also be shown off. Huawei has not publicly released details of the event.

    In the coming months, the firm plans to release another 5G phone, possibly under Nova, its mid-range lineup, Chinese news outlet IT Times reported Tuesday, citing unidentified industry sources. Huawei declined to comment.

    Zhu said the phone was widely expected to come with 5G capability, powered either by the “Kirin 9000s chip or another chip.”

    If it does, the new model could become even more popular than the Mate 60 Pro, which starts at 6,999 yuan (about $959), because of its relative affordability, he added.

    While Raimondo was unhappy with the timing of Huawei’s launch, analysts say it was unlikely to have been arranged to coincide with her presence in China.

    It was likely “a marketing campaign aimed at winning over customer interest before the iPhone 15 hits the market,” analysts at Eurasia Group wrote in a report.

    The move helped the Shenzhen-based company capture the second spot in China’s smartphone market in the first week of September, ahead of Apple’s big event, said Lam of Counterpoint.

    — Rashard Rose and Mengchen Zhang contributed to this report.

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  • X has ditched a political misinformation reporting feature, researchers say | CNN Business

    X has ditched a political misinformation reporting feature, researchers say | CNN Business

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    CNN
     — 

    X, the social media company formerly known as Twitter, has scrapped a feature that lets users self-report political misinformation on the platform, a research group says, marking the latest safety-focused guardrail that X has rolled back since billionaire Elon Musk took the helm.

    The move was first spotted by an Australia-based digital policy think tank, Reset Australia. The group of researchers sent an open letter to X warning of the potential harms this can cause as it came just weeks ahead of a major referendum vote on whether to change the Australian constitution to establish an Indigenous advisory group with a direct line to government.

    “There now appears to be no channel to report electoral misinformation when discovered on your platform,” the letter from Reset Australia states. “It is extremely concerning that Australians would lose the ability to report serious misinformation weeks away from a major referendum.”

    The rollback also comes as political campaigning for the United States 2024 presidential election ramps up, and concerns about the spread of misinformation online remains a keystone issue ahead of the US vote.

    X did not immediately respond to CNN’s request for comment Wednesday morning. X users, notably, can still report content on the platform for violations in other categories — such as “Hate,” “Abuse & Harassment,” and “Violent Speech,” among other issues. Musk has also long touted the platforms “Community Notes” feature, which lets users add context they think is missing to posts.

    The user-reporting feature initially launched as a test for a small group of users in the US, South Korea and Australia, X (then called Twitter) announced in August 2021. The feature allowed users to report a post as “it’s misleading” when they encountered problematic political content. In January 2022, the company said it was expanding the misinformation reporting feature to more countries and users.

    Musk’s rocky takeover of Twitter, meanwhile, was officially completed in October 2022.

    With Musk at the helm, the platform has also made other changes, such as reinstating controversial accounts, including those belonging to former US President Donald Trump and rapper Kanye West. Musk has long opined concerns about perceived censorship on the platform and its need to focus on promoting what he views as “free speech.”

    In other recent changes to its approach to political content, X announced last month that it will again allow political ads on the platform — for the first time since 2019 — and said that it is hiring for its safety and election teams ahead of the 2024 US presidential vote.

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  • EU launches probe into disinformation campaigns as X says ‘hundreds’ of Hamas-affiliated accounts removed | CNN Business

    EU launches probe into disinformation campaigns as X says ‘hundreds’ of Hamas-affiliated accounts removed | CNN Business

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    London
    CNN
     — 

    X says it has removed “hundreds of Hamas-affiliated accounts” and taken down thousands of posts since the attack on Israel by the Palestinian militant group, even as the European Commission formally opened an investigation into X after a previous warning about disinformation and illegal content on its platform linked to the Israel-Hamas war.

    The platform, formerly known as Twitter, was given 24 hours by the European Union earlier this week to address illegal content and disinformation regarding the conflict or face penalties under the bloc’s recently enacted Digital Services Act.

    CEO Linda Yaccarino responded to EU official Thierry Breton in a letter dated Wednesday that she posted to X. She said the company had “redistributed resources and refocused internal teams who are working around the clock to address this rapidly evolving situation.”

    “There is no place on X for terrorist organizations or violent extremist groups and we continue to remove such accounts in real time,” Yaccarino wrote.

    “X is… addressing identified fake and manipulated content during this constantly evolving and shifting crisis,” she added. The platform had “assembled a leadership group to assess the situation” shortly after news broke about the attack, Yaccarino said.

    European Union officials are now assessing X’s compliance with the DSA and have asked the company to start responding to investigators by as early as Oct. 18.

    The probe covers X’s “policies and practices regarding notices on illegal content, complaint handling, risk assessment and measures to mitigate the risks identified,” the Commission said in a release.

    “X is required to comply with the full set of provisions introduced by the DSA since late August 2023,” the release added, “including the assessment and mitigation of risks related to the dissemination of illegal content, disinformation, gender-based violence, and any negative effects on the exercise of fundamental rights, rights of the child, public security and mental well-being.”

    X didn’t immediately respond to a request for comment. Beyond X, European officials have sent similar warnings to Meta and TikTok in recent days.

    The announcement did not name the Israel-Hamas war. But this week, EU officials sent a letter to X owner Elon Musk warning that if an investigation finds that the company had failed to meet its legal obligations in connection with content about the war, it could face steep penalties, including billions in fines.

    A slew of mischaracterized videos and other posts went viral on X over the weekend, alarming experts who track the spread of misinformation and offering the latest example of social media platforms’ struggle to deal with a flood of falsehoods during a major geopolitical event.

    Since the attack on Israel, Yaccarino said X had acted to “remove or label tens of thousands of pieces of content” that break its rules on violent speech, manipulated media and graphic media. It had also responded to more than 80 “take down requests” from EU authorities to remove content.

    “Community Notes” — which allow X users to fact check false posts — are visible on “thousands of posts, generating millions of impressions,” she wrote.

    According to Yaccarino, notes related to the conflict take about five hours on average to show up after a post is created, a revelation that could fuel concerns that fake or manipulated content is being seen by thousands — or in some cases millions — of people before being moderated.

    The DSA is one of the most ambitious efforts by policymakers anywhere to regulate tech giants and companies face billions in fines for violating the act.

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  • India restricts laptop, PC imports to boost local manufacturing | CNN Business

    India restricts laptop, PC imports to boost local manufacturing | CNN Business

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    CNN
     — 

    India has placed restrictions on the import of computers and laptops in a surprise move from the government of Prime Minister Narendra Modi which has been trying to encourage domestic manufacturing in the tech sector.

    Importers will now need to apply for licenses in order to bring laptops, tablets, personal computers and other electronic devices into the country, according to a notice issued by the Ministry of Commerce and Industry on Thursday. Previously, the import of such items was unrestricted.

    The ministry didn’t provide a reason for the change in rules, however Modi has aggressively pushed his “Make in India” campaign, which promotes local manufacturing in a bid to create more jobs. It follows a similar curb on smart TV imports in 2020.

    India’s electronic imports stood at $19.7 billion in the April to June period, up 6.25% from the same period in 2022, according to Reuters.

    CNN has contacted Apple

    (AAPL)
    and Samsung

    (SSNLF)
    , top laptop sellers in the South Asian country, for comment but has not yet received responses.

    India’s push to manufacture domestically comes at a crucial time for the world’s most populous nation, as companies look beyond China to secure crucial supply chains.

    India’s working-age population is expected to hit one billion over the next decade, according to the Organisation for Economic Co-operation and Development. Its large and young labor force makes the country a big draw for global companies seeking alternative manufacturing hubs to China.

    Earlier this year, India’s commerce minister, Piyush Goyal, said Apple was already making between 5% and 7% of its products in India.

    “If I am not mistaken, they are targeting to go up to 25% of their manufacturing,” he said at an event in January.

    In June, US chipmaker Micron

    (MICR)
    announced a new factory in the western state of Gujarat, calling it the country’s first semiconductor assembly and test manufacturing facility.

    The venture will see Micron invest up to $825 million and create “up to 5,000 new direct Micron jobs and 15,000 community jobs over the next several years,” according to the company.

    Foxconn, the world’s largest contract electronics maker and a key supplier to Apple, is also looking to expand its manufacturing operations in India.

    Last month, it abruptly announced it was exiting an ambitious $19.4 billion joint venture with Vedanta

    (VEDL)
    , an Indian metals and energy conglomerate, to help build one of the country’s first chip factories.

    But, the company said it was still committed to investing in Indian chipmaking and was applying to a government program that subsidizes the cost of setting up semiconductor or electronic display production facilities in the country.

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  • X is ‘close to breakeven’ says CEO Linda Yaccarino | CNN Business

    X is ‘close to breakeven’ says CEO Linda Yaccarino | CNN Business

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    New York
    CNN
     — 

    X CEO Linda Yaccarino, leader of the platform formerly known as Twitter, said the company is keeping an eye on new competitor Threads, despite the sharply slowing growth of the rival app from Meta.

    “Threads did jump in with a ton of hype and a launch pad from their Instagram users … [but] it’s dropped off dramatically,” Yaccarino told CNBC Thursday in her first interview as CEO of the company now called X.

    “But you can never, ever take your eye off any competition because they’ll continue iterating and as much as the launch has stalled, we’re keeping an eye on everything that they’re doing.”

    Still, Yaccarino said X remains largely focused on its own future as the company chases profitability, and that Threads may be looking at its past.

    “What we can see is that [Threads] may be building to what Twitter was — enter rebrand, enter X — and we’re focused on what X will be, and it’s an entirely different roadmap and vision,” she said.

    Staving off competition from Meta’s Threads and other rival platforms is just one of the things Yaccarino is now tasked with after taking over from owner Elon Musk as X’s CEO in June. In just her first two months, the company underwent a massive rebrand from Twitter to X in hopes of transforming into an “everything app” similar to China’s WeChat, and has continued to warn of challenges reviving its core advertising business. Musk, who is now the company’s chief technology officer, has also been preparing for a cage fight with Meta CEO Mark Zuckerberg.

    Yaccarino joined the company after months of turmoil caused by Musk’s takeover, including mass layoffs, controversial policy decisions and various legal battles.

    But on Thursday, she doubled down on the company’s vision and explained why it retired its highly recognized brand name.

    “The rebrand really represented a liberation from Twitter, a liberation that allows us to evolve past a legacy mindset and to reimagine how everyone … around the world is going to change how we congregate, how we transact, all in one place,” Yaccarino said, adding that users would soon be able to make video calls and payments through the platform.

    “It’s developing into this global town square that is fueled by free expression, where the public gathers in real time,” she said.

    Yaccarino said that the company is returning to growth mode after months of slashing costs through ongoing layoffs, infrastructure and office space reductions and, in some cases, allegedly holding back on paying its bills and employee severance. Twitter’s staff has shrunk from nearly 8,000 employees to just around 1,500 workers since Musk’s takeover, Yaccarino said.

    “Are we hiring? Yes,” Yaccarino said. “I get to come in and shift from this cost discipline to growth … the future is bright.”

    Threatening to stand in the way of that evolution are the company’s very real business challenges. Musk last month disclosed in a post that, due to a 50% drop in advertising revenue and a “heavy debt load,” the platform is still losing money. After Musk bought Twitter for $44 billion last October, the company’s value now stands around $15 billion, according to a May disclosure from a Fidelity fund.

    Yaccarino, a former marketing executive with NBCUniversal, was brought on to Twitter in part to help revive its advertising business. And she said on Thursday that the company is “close to breakeven.”

    “Coca Cola, Visa, State Farm is a huge partner, they’re coming back — the last bunch of weeks, continued revenue growth,” Yaccarino said.

    But maintaining the ad business has been an uphill battle for the site since Musk’s takeover. Hordes of advertisers halted spending on the platform over concerns about content moderation, mass layoffs and general uncertainty about the company’s future. Musk has also defended his own controversial tweets, telling CNBC in May, “I’ll say what I want, and if the consequence of that is losing money, so be it.”

    Yaccarino pointed to the company’s “freedom of speech, not freedom of reach” policy that aims to limit the reach of so-called lawful but awful content on the platform and to protect brands from having their ads appear alongside such content. X on Tuesday rolled out additional brand safety controls for advertisers, including the ability to avoid having their ads show next to “targeted hate speech, sexual content, gratuitous gore, excessive profanity, obscenity, spam, drugs.”

    “I wrap my security blanket around you, my brand and my CMO, and say your ads will only air next to content that is appropriate for you,” Yaccarino said Thursday.

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  • Meta’s Threads is finally available on desktop | CNN Business

    Meta’s Threads is finally available on desktop | CNN Business

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    New York
    CNN
     — 

    Threads users, rejoice: the app is rolling out its highly anticipated web version Tuesday.

    The update — perhaps the most requested by users since Threads’ mobile-only launch last month — puts the new platform one step closer to recreating the functions offered by rival X, the platform formerly known as Twitter, and could help reignite user growth following a sluggish period.

    Parent company Meta says Threads users will soon be able to log in, post, view and interact with other posts via a browser on a desktop computer, as the web version rolls out to users in the coming days. The company says it plans to add more desktop features in the future. In an early access test of some of the web-based features, CNN was able to post on the platform but could not yet scroll the home feed.

    Threads launched in early July with stunning success, garnering more than 100 million sign-ups in its first week on the back of months of chaos at Twitter. But the buzz faded somewhat as users realized the bare-bones platform still lacked many of the features that made Twitter popular, such as trending topics, robust search functions and direct messaging. Threads has been steadily rolling out smaller updates but the hotly demanded web version could help reignite stronger user engagement.

    The new web version could also raise fresh competitive concerns for X, after owner Elon Musk sparked user backlash last week by suggesting he might do away with the platform’s block feature.

    Meta employees have for weeks teased that a desktop version of Threads was in the works and being tested internally. Just last week, Instagram head Adam Mosseri, who is also leading Threads, said he had been posting from the platform’s desktop version and suggested “it’ll be ready soon but it needs more work.”

    Web access is just one of a series of recent updates to Threads as Meta continues to build out the new platform. Other features added over the past month include new “reposts” and “likes” tabs that show users the posts they have reshared and liked in their profiles, a chronological following feed and a button to share threads posts to Instagram DMs.

    Continued updates to Threads are essential if Meta wants to maintain the early traction it had with users. Despite the app’s stunning success following its launch, by the end of July, Threads’ daily active user count had fallen 82% to around 8 million users, according to a report from market research firm Sensor Tower earlier this month. By August 16, updates to Threads had helped the app notch slight gains to 11 million daily active users, Sensor Tower said in a report Monday.

    Meta CEO Mark Zuckerberg has said he is “quite optimistic” about the app’s potential.

    “We saw unprecedented growth out of the gate and more importantly we’re seeing more people coming back daily than I’d expected,” he said last month during the company’s earnings call. “And now, we’re focused on retention and improving the basics. And then after that, we’ll focus on growing the community to the scale we think is possible.”

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  • China’s top chipmaker may be in hot water as US lawmakers call for further sanctions after Huawei ‘breakthrough’ | CNN Business

    China’s top chipmaker may be in hot water as US lawmakers call for further sanctions after Huawei ‘breakthrough’ | CNN Business

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


    Hong Kong
    CNN
     — 

    Shares in SMIC, China’s largest contract chipmaker, plunged on Thursday, after two US congressmen called on the White House to further restrict export sales to the company.

    The comments came after Huawei Technologies introduced the Mate 60 Pro, a Chinese smartphone powered by an advanced chip that is believed to have been made by SMIC.

    Last week’s launch shocked industry experts who didn’t understand how SMIC, which is headquartered in Shanghai, would have the ability to manufacture such a chip following sweeping efforts by the United States to restrict China’s access to foreign chip technology.

    TechInsights, a research organization based in Canada specializing in semiconductors, revealed shortly after the launch that the smartphone contained a new 5G Kirin 9000s processor developed specifically for Huawei by SMIC.

    This is a “big tech breakthrough for China,” Jefferies analysts said Tuesday in a research note.

    The development has fueled fears among analysts that the US-China tech war is likely to accelerate in the near future.

    US representative Mike Gallagher, chair of the US House of Representatives committee on China, called on the US Commerce Department on Wednesday to end all technology exports to Huawei and SMIC, according to Reuters.

    Gallagher was quoted as saying SMIC may have violated US sanctions, as this chip likely could not be produced without US technology.

    “The time has come to end all US technology exports to both Huawei and SMIC to make clear any firm that flouts US law and undermines our national security will be cut off from our technology,” he said.

    Shares in SMIC, which stands for Semiconductor Manufacturing International Corporation, sank 8.3% in Shanghai and 7.6% in Hong Kong on Thursday. Hua Hong Semiconductor, China’s second largest chip foundry, tumbled 5.8%.

    Texas Republican Michael McCaul, who chairs the House Foreign Affairs Committee, was quoted by Reuters as saying he was concerned about the possibility of China trying to “get a monopoly” in the manufacture of less-advanced computer chips.

    “We talked a lot about advanced semiconductor chips, but we also need look at legacy,” he reportedly said, referring to older computer chip technology which does not fall under export controls.

    “I think China is trying to get a monopoly on the market share of legacy semiconductor chips as well. And I think that’s a part of the discussion we’ll be having,” he said.

    Chinese state media have touted the development as a sign the country had successfully “broken US sanctions” and “achieved technological independence” in advanced chipmaking.

    Meme makers on the Chinese internet have even crowned US Commerce Secretary Gina Raimondo the unofficial brand ambassador for the Mate 60 series.

    The memes poke fun at the idea that that US sanctions, which are implemented and enforced by the US Commerce department, may have indirectly led to the launch of the new phone as China’s homegrown firms had to work with the available technology.

    Raimondo visited China last week, when the phone was launched. The memes have gone viral online and been reported on by state broadcaster CCTV.

    Before Thursday, SMIC’s shares in Hong Kong had rallied more than 20% within two weeks due to investor optimism. Huahong Semiconductor jumped 11%.

    CNN has reached out to Gallagher’s and McCaul’s offices for comment, but has yet to receive a response.

    Huawei was added to a blacklist in May 2019 by the US Commerce Department over national security concerns. That means companies have to apply for US export licenses to supply technology to Huawei.

    SMIC was also put on the same list in 2020, as US officials were concerned it could use American technology to aid the Chinese military. SMIC has denied having any relationship with the Chinese military.

    “The fact that China has achieved a big breakthrough in [semiconductor] tech will likely create more debate in the US about the effectiveness of sanctions,” said the Jefferies analysts.

    They expect the Biden administration to tighten chips ban on China, which was introduced in October 2022, in the next few months, further limiting China’s access to advanced US semiconductors.

    “Overall the US-China tech war is likely to escalate,” they said.

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  • Google reaches $93 million settlement in tracking location case | CNN Business

    Google reaches $93 million settlement in tracking location case | CNN Business

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    New York
    CNN
     — 

    Google has reached a $93 million settlement with the state of California to resolve allegations that it was collecting consumers’ data without their consent, the state’s attorney general said in a statement Thursday.

    The California Department of Justice found that, after a multi-year investigation, the tech giant was “deceiving users by collecting, storing, and using their location data for consumer profiling and advertising purposes without informed consent.”

    California Attorney General Rob Bonta also said Google accepted taking future actions to prevent those practices. These actions would apply beyond California to other states, according to the proposed order.

    “Consistent with improvements we’ve made in recent years, we have settled this matter, which was based on outdated product policies that we changed years ago,” a Google spokesperson said.

    The company pointed to a 2022 blog post which introduced transparency tools, such as auto-delete controls and incognito mode on Google Maps.

    Google’s location-based advertising is an important part of its business because companies want to cater their content based on who lives where, the state said. The state also said that Google factors in location in its “behavioral profile” of users.

    Bonta had alleged Google wasn’t truthful about its location collection and storage tactics. For example, the original complaint said that Google continued to collect and store location data even when users turned off the “location history” setting, just in different ways.

    As part of the settlement, Google would have to be more transparent about its location tracking and disclose to users that their location information could be used for targeted ads. The proposed order is subject to court approval, the state’s attorney general said.

    A lawsuit by the Biden administration in January argued Google’s ad tech business should be broken up.

    Google’s practices are under scrutiny by other lawmakers right now, too. A landmark antitrust trial against Google opened earlier this week, with sweeping allegations from the US DOJ that for years the company intentionally stifled competition challenging its massive search engine, accusing the tech giant of spending billions to operate an illegal monopoly that has harmed every computer and mobile device user in the United States.

    For Google’s opening statement in that case, attorney John Schmidtlein said that Apple’s decision to make Google the default search engine in its Safari browser demonstrates how Google’s search engine is the superior product consumers prefer.

    Last week, Google reached an agreement in principle with multiple US states to settle an antitrust lawsuit for its alleged conduct in the Google Play Store. The lawsuit alleged the company inflated prices for paid apps and in-app purchases in the Android app market.

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  • Apple Watch’s new gesture control feature will have everyone tapping the air | CNN Business

    Apple Watch’s new gesture control feature will have everyone tapping the air | CNN Business

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    CNN
     — 

    You’re about to see people in public tapping two fingers together in the air.

    Over the past few days, I’ve been taking phone calls, playing music and scrolling through widgets on the new Apple Watch Series 9 without ever touching the device. I’ve used it to silence my watch’s alarm in the morning, stop timers and open a notification while carrying too many bags.

    It may sound like a gimmick — and it most certainly feels strange to do it in public — but considering the small size of the Apple Watch screen, the tool offers an effective hands-free way to interact with the device.

    Apple’s latest lineup of smartwatches, the Watch Series 9 and high-end Ultra 2, feature a new gesture tool called Double Tap, allowing users to tap their index finger and thumb together twice, to control the device. It can also scroll through widgets, much like turning the digital crown.

    The feature isn’t entirely new; the previous generation of Apple Watch Ultra was capable of similar pinch-and-clench gestures via its Assistive Touch accessibility tool. But Apple’s decision to bring a feature like this to the forefront hints at an increasingly touch-free future. It also comes three months after the company unveiled the Vision Pro mixed reality headset, which will launch next year, with a similar finger tap control.

    Double Tap works in combination with the latest Apple Watch accelerometer, gyroscope and optical heart rate sensor, which looks for disruptions in the blood flow when the fingers are pressed together. That data is processed by a new machine learning algorithm and runs on a faster neural engine, specialized hardware that handles AI and machine learning tasks.

    While the concept is similar, gesture controls are different on the Vision Pro, which will track users’ eyes and hand movements. Apple told CNN it added gesture control to the headset because it needed a different, seamless interface for users to interact with, whereas Double Tap is more about simplifying the Apple Watch experience.

    When the Apple Watch’s display is turned on, the device automatically knows to respond when it senses the fingers are touched together. It essentially works as a “yes” or “accept” button; that means if a call comes through, you can Double Tap to accept it (covering the watch with your full hand, however, will silence it quickly). If a song is playing, you can pause it by double tapping, and then again to start it.

    Although you can subtly flick on the display and do the gesture close to your body, trying to conceal the movement when around other people, I found it works much better when it’s raised a bit higher. This, however, makes the action more obvious — and it’s something that will take a little getting used to seeing in person.

    “This is also about social acceptance. At the moment, I find the idea of people making this gesture more often than not in public a bit funny. But time will tell if users find it acceptable,” said Annette Zimmerman, an analyst at Gartner Research. “I think Apple is very use-case driven and focuses on user feedback on things they could improve.”

    Similarly, it took a while for people to get used to the design of Apple’s AirPods when they were announced in 2016; many criticized how they looked dangling out of users’ ears. Now they’ve become part of modern culture.

    Other learning curves exist with the Double Tap feature. Because I am right handed and wear an Apple Watch on my left hand, tapping my left fingers together to trigger the control takes an extra second or two of mental coordination.

    The future of hands-free devices

    The new Apple Watch Series 9 can be controlled by tapping two fingers together.

    Apple isn’t the only tech company developing gesture controls like this. Samsung TVs, some smartphones and Microsoft’s mixed reality headset all incorporate some hand gesture functionality. But this is Apple’s biggest push to date, and adding it to a flagship device like the Apple Watch will soon put all eyes on the concept of hand gestures.

    “It’s a great move by Apple as it differentiates the company from other brands when it comes to innovation and ease of usability. It also shows Apple’s commitment in the fields of artificial intelligence,” said Sachin Mehta, senior analyst at tech intelligence firm ABI Research. “The new double tap gesture is not a surprise as Apple keeps on developing a unified and intuitive user experience across its product line up. It will cement the Apple Watch as the smartwatch to have.”

    It works differently on the Vision Pro, which will track a user’s eyes and hand movements to make punching and swiping controls. The headset needed a different user interface for users to interact with it, and gestures give that control even when a face is covered by the hardware.

    Further showing how Apple is thinking about gesture control long term, it recently filed for patents focused on gesture controls, including for the Apple TV. That said, Mehta believes there’s no question “we expect more gesture features in Apple’s product lineup in the future.”

    In addition to Double Tap, the Apple Watch Series 9 features Apple’s powerful new in-house silicon chip and ultrawideband connectivity. It will let users log health data with their voice, use “name drop” to share contact information by touching another Apple Watch and raise their wrist to automatically brighten the display. The Series 9 will come in colors such as pink, navy, red, gold, silver and graphite.

    Apple also showed off the second iteration of its rugged Ultra smartwatch line, featuring the updated S9 custom chip and a new ultrawideband chip which uses radio waves to communicate. It also features more information on the display for more intensive tracking.

    The Apple Watch Series 9 will start at $399 and the Ultra is priced at $799. Although they start shipping on Friday, September 22, the Double Tap feature will launch via a software update next month.

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  • Biden teases forthcoming executive order on AI | CNN Business

    Biden teases forthcoming executive order on AI | CNN Business

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    CNN
     — 

    The White House plans to introduce a highly anticipated executive order in the coming weeks dealing with artificial intelligence, President Joe Biden said Wednesday.

    “This fall, I’m going to take executive action, and my administration is going to continue to work with bipartisan legislation,” Biden said, “so America leads the way toward responsible AI innovation.”

    Biden offered no details on the contents of the coming order, which the White House had first announced in July. But his remarks offer greater insight into his administration’s timing.

    Biden’s signing of the order would build on an earlier administration proposal for an “AI Bill of Rights.” Civil society groups have urged the Biden administration to require federal agencies to implement the AI Bill of Rights as part of any executive order on the technology. Meanwhile, the US Senate is continuing to educate lawmakers on artificial intelligence in preparation for months of legislative work on the issue.

    In Wednesday’s remarks during a meeting of the Presidential Council of Advisors on Science and Technology, Biden described the recent conversations he’s had with AI leaders and experts.

    “Vast differences exist among them in terms of what potential it has, what dangers there are, and so, I have a keen interest in AI,” Biden said. “I’ve convened key experts on how to harness the power of artificial intelligence for good while protecting people from the profound risk it also presents.”

    “We can’t kid ourselves,” Biden continued. “[There is] profound risk if we don’t do it well.”

    Biden reiterated the United States’ commitment to working with international partners including the United Kingdom on developing safeguards for artificial intelligence.

    The meeting also saw presidential advisers showcasing to Biden several use cases for artificial intelligence. Maria Zuber, the panel’s co-chair, said the examples Biden would see during the meeting would include the use of AI to predict extreme weather linked to climate change; to “create materials that have properties we’ve never been able to create before”; and to “understand the origins of the universe, which is literally as big as it gets.”

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  • Microsoft completes blockbuster Activision Blizzard takeover after UK removes final hurdle | CNN Business

    Microsoft completes blockbuster Activision Blizzard takeover after UK removes final hurdle | CNN Business

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    CNN
     — 

    Microsoft has completed its takeover of Activision Blizzard, the maker of “Call of Duty” and other hit video games, closing one of the biggest tech deals of all time.

    The company said in a filing Friday with the US Securities and Exchange Commission that Activision (ATVI) had now become a wholly-owned subsidiary.

    Earlier on Friday, UK antitrust officials approved the planned acquisition, removing the final regulatory hurdle to the deal closing.

    The Competition and Markets Authority said the merger had been cleared after the companies agreed to give up certain cloud gaming rights. The concession is “a game-changer” that will allow “competitive prices and better services,” the CMA said in a statement.

    Microsoft (MSFT) unveiled the deal in early 2022, but it was blocked in April by the UK competition regulator.

    The CMA was the only regulator worldwide standing in the way of the landmark acquisition, which was valued at $69 billion when it was first announced.

    The UK regulator had concerns about competition in the cloud gaming market, saying Microsoft could seek to make Activision’s games exclusive to its own platforms, and then increase the cost of user subscriptions, leaving gamers with less choice.

    In August, Microsoft and Activision addressed those concerns by revising the deal.

    They proposed a restructured merger, which would allow Activision’s cloud streaming rights outside the European Union and three other European countries to be sold to a rival, Ubisoft Entertainment.

    That appeased the CMA, which signaled last month that it would most likely approve the reworked takeover.

    “The new deal will stop Microsoft from locking up competition in cloud gaming,” the agency said Friday.

    “It will also help to ensure that cloud gaming providers will be able to use non-Windows operating systems for Activision content, reducing costs and increasing efficiency.”

    Activision Blizzard is one of the world’s biggest video game developers. Alongside “Call of Duty,” it also produces “World of Warcraft” and “Overwatch.”

    Microsoft, which sells the Xbox gaming console, offers a popular video game subscription service called Xbox Game Pass, as well as a cloud-based video game streaming service.

    The acquisition is expected to help Microsoft boost its standing in the gaming industry and better compete with market leaders Tencent and Sony.

    In a statement on X, the platform formerly known as Twitter, Microsoft President Brad Smith said “we’re grateful for the CMA’s thorough review and decision.”

    — Olesya Dmitracova contributed to this article.

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  • EU asks Meta for more details on efforts to stop illegal and inaccurate content on Israel-Hamas war | CNN Business

    EU asks Meta for more details on efforts to stop illegal and inaccurate content on Israel-Hamas war | CNN Business

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    London
    CNN
     — 

    The European Union has told Meta it has a week to explain in greater detail how it is fighting the spread of illegal content and disinformation on its Facebook and Instagram platforms following the attacks across Israel by Hamas.

    The European Commission, the bloc’s executive arm, said it had sent the formal request for information to Meta (META) Thursday.

    The commission also asked TikTok for more information on the steps it had taken to prevent the spread of “terrorist and violent content and hate speech,” it said, but without referring to the Israel-Hamas war.

    Last week, EU Commissioner Thierry Breton wrote to several social media companies, including Meta and TikTok, giving them 24 hours to detail the measures they were taking to comply with EU rules on content moderation enshrined in the recently enacted Digital Services Act (DSA).

    On Friday, Meta said its teams had been working “around the clock” since the attacks by Hamas on October 7 to monitor its platforms and outlined some of its actions against misinformation and content that violates its policies and standards.

    And on Sunday, TikTok announced that it had, among other measures, launched a command center to coordinate the work of its “safety professionals” around the world and improve the software it uses to automatically detect and remove graphic and violent content.

    But the European Commission has made it clear it needs more information. In its Thursday announcement, the body gave both Meta and TikTok until October 25 to respond to its requests and warned that it had the power to impose financial penalties if it was not satisfied with their responses.

    Both companies also have until November 8 to detail how they intend to protect the “integrity of elections” on their platforms, the commission said.

    Both Meta and TikTok are bound by obligations set out in the DSA, a landmark piece of legislation, enacted in August, that seeks to more stringently regulate large tech companies, and protect people’s rights online.

    The commission’s formal requests come a week after it issued a similar ultimatum to X, the company formerly known as Twitter, asking for information on how it intends to stop the spread of illegal, misleading, violent and hateful content.

    The commission said it had opened an investigation into X’s compliance with the DSA. It has not announced parallel investigations into Meta or TikTok.

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  • Cyberattack forces hospitals to divert ambulances in Connecticut and Pennsylvania | CNN Politics

    Cyberattack forces hospitals to divert ambulances in Connecticut and Pennsylvania | CNN Politics

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    CNN
     — 

    A cyberattack on Thursday knocked computer systems offline at hospitals in Connecticut and Pennsylvania, forcing them to send ambulances to other hospitals, hospital spokespeople told CNN.

    As of late Friday morning, Crozer Health, a network of three hospitals and a medical center in the Philadelphia suburbs, was still diverting ambulances for stroke and trauma patients to other hospitals because of a “ransomware attack,” Crozer Health spokesperson Lori Bookbinder told CNN.

    The hack hit Prospect Medical Holdings and affected all of their health care facilities, according to a statement from PMH affiliate Eastern Connecticut Health Network. PMH owns 16 hospitals in California, Connecticut, Pennsylvania and Rhode Island, according to its website.

    At Eastern Connecticut Health Network, which includes two hospitals, the urgent care center is closed and elective surgeries were canceled until further noticed because of the hack, according to the network’s website.

    Other Prospect Medical Holdings affiliates reported disruptions from the hack.

    “We are working closely with federal law enforcement to respond to this incident,” Prospective Medical Holdings said in a statement to CNN.

    National Security Council spokeswoman Adrienne Watson told CNN that the White House is “closely monitoring the ongoing incident,” adding that “the Department of Health and Human Services has been in contact with the company to offer federal assistance, and we are ready to provide support as needed to prevent any disruption to patient care as a result of this incident.”

    The company has so far declined offers of federal assistance, according to a US official.

    But Prospective Medical Holdings said later Friday that they “believe there may have been a miscommunication or a misunderstanding” and that they “welcome any assistance from the federal government.”

    CharterCARE Health Partners, which includes two hospitals in Rhode Island, said Thursday that the incident was affecting “inpatient and outpatient operations” and that “some patient procedures may be affected.”

    Patient care continues at the affected hospitals, but they’re operating with limited capacity in what is now a well-rehearsed routine. Throughout the coronavirus pandemic, ransomware and other cyberattacks hampered patient care at American hospitals that are often ill-equipped to deal with them.

    Eastern Connecticut Health Network ended ambulance diversion at 10 a.m. local time Friday, spokesperson Nina Kruse told CNN. The emergency rooms at ECHN’s two hospitals have been open throughout the incident, Kruse said.

    This isn’t Crozer Health’s first bout with ransomware. A June 2020 attack orchestrated by a prolific ransomware gang forced the hospital network to take its computer systems offline.

    This story has been updated with additional reporting.

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  • More than 20 million Americans enrolled in a federal program for subsidized internet access | CNN Business

    More than 20 million Americans enrolled in a federal program for subsidized internet access | CNN Business

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    Washington
    CNN
     — 

    More than 20 million US households are now receiving discounts on internet service as part of a federal program created to close the digital divide, according to the Federal Communications Commission.

    The milestone highlights the cost of reliable internet service for low-income families, an issue that the government’s Affordable Connectivity Program (ACP) seeks to address by providing $30-a-month subsidies to eligible US households. Recipients living on tribal lands can receive even more, up to $75 per month to help cover internet access costs.

    US residents can can qualify for the program if they meet certain eligibility requirements, such as participating in other government assistance programs including SNAP or Medicaid, if their income is below a certain level or if they have recently received federal Pell grants.

    The FCC announcement comes nearly two years after the bipartisan infrastructure law first set up the program, replacing an earlier pandemic-era aid initiative. And Americans have signed up for the program at a rapid pace.

    In early 2022, just months after the infrastructure bill became law, the FCC said more than 10 million households had signed up for the ACP.

    Then, this February, Vice President Kamala Harris announced the figure had grown to more than 16 million households saving a total of $500 million a month on internet service.

    The program has continued to gain more than half a million new households a month since then.

    “For a long time, closing the digital divide focused on one part of the equation—the lack of physical infrastructure to get online,” said FCC Chairwoman Jessica Rosenworcel in a statement. “But we know that for many people, even when there was technically access, the cost to get online was too high.”

    Despite the program’s bipartisan popularity and its rapid uptake by consumers, the new enrollment figures still only represent about 40% of the estimated 50 million households in the United States that may be eligible for assistance through the ACP, according to research by the consumer advocacy group Common Sense Media.

    And the ACP’s future is uncertain: Once the program runs out of the $14 billion that Congress initially allocated for it, millions of low-income Americans could lose their monthly discounts. The more households that sign up, the faster the program will exhaust its funding. Policy analysts widely anticipate the ACP running out of money in 2024, setting up pressure on Congress to extend the program.

    The ACP isn’t the only way the US government has recently moved to expand internet access. Billions of dollars in infrastructure funding are set to flow to states in the coming months as part of a separate initiative to encourage broadband buildouts. All US states and territories have been awarded at least some funding under the program overseen by the Commerce Department known as the Broadband Equity, Access and Deployment (BEAD) program.

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

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

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    New York
    CNN
     — 

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

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

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

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

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

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

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

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

    This story is developing and will be updated.

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  • TikTok Shop is now open for business | CNN Business

    TikTok Shop is now open for business | CNN Business

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    New York
    CNN
     — 

    TikTok is officially kicking off its US e-commerce efforts with the launch of TikTok Shop.

    The short-form video platform launched an in-app shopping experience in the United States on Tuesday, according to a company blog post, after months of testing. TikTok Shop allows users to find and directly purchase products used in live videos, tagged in content shown on their algorithm-driven For You page, pinned on brand profiles or marketed in a new “Shop” tab.

    For creators, the feature could bring new streams of income by connecting them with brands for commission-based marketing partnerships. TikTok is also offering “Fulfilled by TikTok,” a program that handles all of the logistics for sellers, including storing, packing and shipping.

    “With community-driven trends like #TikTokMadeMeBuyIt inspiring people to discover and share the products they love, TikTok is creating a new shopping culture,” the company wrote. “With TikTok Shop, we’re giving people a place to experience the joy of discovering and purchasing new products without leaving the app.”

    TikTok is looking to quadruple its merchandise sales by the end of the year to hit $20 billion, according to Bloomberg.

    The app’s push into live e-commerce comes as other platforms have struggled with online shopping initiatives.

    Meta-owned Instagram killed livestream product tagging and shopping in March and got rid of the shopping tab on the app’s navigation bar. Facebook also axed live shopping in October. Meanwhile,YouTube partnered with Shopify in 2022 to help creators sell products.

    Amazon has been offering Amazon Live since 2019, a streaming hub that sells items through live videos. Amazon Storefront, launched in 2018, also allows creators to build pages that bring together content and product recommendations to sell to followers, for a commission.

    TikTok Shop is already available throughout parts of Asia and the United Kingdom. Southeast Asia, a region with a collective population of 630 million – half of them under 30 – is one of TikTok’s biggest markets in terms of user numbers, generating more than 325 million visitors to the app every month, according to Reuters.

    But the platform has yet to translate its large user base into a major e-commerce revenue source in the region as it faces fierce competition from bigger rivals of Sea’s Shopee, Alibaba’s Lazada and GoTo’s Tokopedia.

    E-commerce transactions across the region reached nearly $100 billion last year, with Indonesia alone accounting for $52 billion, according to data from consultancy Momentum Works.

    TikTok facilitated $4.4 billion of transactions across Southeast Asia last year, up from $600 million in 2021, but it still trailed far behind Shopee’s $48 billion of regional merchandise sales in 2022, Momentum Works told Reuters in June.

    Cracking the United States has proven even harder. TikTok Shop, as launched Tuesday, has been in testing since November.

    The platform has previously backed down from efforts to push e-commerce. TikTok piloted a shopping experience in partnership with Shopify in 2021 that did not stick, and reports circulated in 2022 that TikTok was giving up altogether on live shopping in the United States and Europe after struggling to connect with consumers.

    The move to once again revitalize e-retail efforts in the United States comes as the app faces increasing scrutiny from lawmakers. Some critics and a growing number of US lawmakers on both sides of the aisle view TikTok as a national security threat, since it is owned by China-based company ByteDance. Some US officials have expressed fears that the Chinese government could spy on US data via TikTok, though there is so far no evidence that the Chinese government has ever accessed personal information of US-based TikTok users.

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  • So long, robotic Alexa. Amazon’s voice assistant gets more human-like with generative AI | CNN Business

    So long, robotic Alexa. Amazon’s voice assistant gets more human-like with generative AI | CNN Business

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    CNN
     — 

    Amazon’s Alexa is about to bring generative AI inside the house, as the company introduces sweeping changes to how its ubiquitous voice assistant both sounds and functions.

    The company announced a generative AI update for Alexa and, subsequently, of all Echo products dating back to 2014, at a press event Wednesday at its new campus in Arlington, Virginia. Alexa will be able to resume conversations without a wake word, respond more quickly, learn user preferences, field follow-up questions and change its tone based on the topic. Alexa will even offer opinions, such as which movies should have won an Oscar but didn’t.

    Generative AI refers to a type of artificial intelligence that can create new content, such as text and images, in response to user prompts.

    “It feels just like talking to a human being,” an Amazon executive claimed.

    The updates come as Amazon tries to keep pace with a new wave of conversational AI tools that have accelerated the artificial intelligence arms race in the tech industry and rapidly reshaped what consumers may expect from their tech products. The company did not disclose when the updates will make their way into products.

    In a live demo, Dave Limp, senior VP of devices and services at Amazon, asked Alexa about his favorite college football team without ever stating the name. (Limp said he previously told Alexa and it remembered). If his favorite team wins, Alexa responds joyfully; if they lose, Alexa will respond with empathy.

    When Limp said “Alexa, let’s chat,” it launched a special mode that allowed for a back-and-forth exchange on various topics. Notably, Limp paused several times to address the audience and resumed the conversation with Alexa without using the “Alexa” wake word, picking up where they left off.

    The demo wasn’t without hiccups – Alexa’s response time at times lagged – but the voice assistant had far more personality, spoke in a more natural and expressive tone, and kept the conversation flowing back and forth.

    Although the company did not outline specific safeguards – some other large-language models have previously gone off the rails – it said on its website “it will design experiences to protect our customers’ privacy and security, and to give them control and transparency.”

    The company also said new developer tools will allow companies to work alongside its large-language model. In a blog post, Amazon said it is already partnering with a handful of companies, such as BMW, to develop conversational in-car voice assistant capabilities.

    Rowan Curran, an analyst at Forrester Research, said the news marks a major step forward in bringing generative AI to the home and allowing it to accomplish everyday tasks. By connecting speech-to-text to external systems and by using a large language model to understand and produce natural speech, this is “where we can begin to see the future of how we will use this technology near-ubiquitously in our everyday lives.”

    Some US users will get access to the changes through a free preview on existing Echo devices. Over the years, Alexa has been infused in countless Echo products, from its speaker and hub lineup to clocks, microwaves,and eyeglasses.

    Amazon also said it will be bringing generative AI to its Fire TV platform, allowing users to ask more natural, nuanced or open-ended questions about genres, storylines and scenes or make more targeted content suggestions.

    Alexa launched nearly a decade ago and, along with Apple’s Siri, Microsoft’s Cortana, and other voice assistants, were promised to change the way people interacted with technology. But the viral success of ChatGPT has arguably accomplished some of those goals faster and across a wider range of everyday products.

    The effort to continue updating the technology that powers Alexa comes at a difficult moment for Amazon. Like other Big Tech companies, Amazon has slashed staff in recent months and shelved products in an urgent effort to cut costs amid broader economic uncertainty. The Alexa division did not escape unscathed.

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

    Still, he emphasized innovation around Alexa has not stalled. “We’re not done and won’t be done until Alexa is as good or better than the ‘Star Trek’ computer,” Limp said. “And to be able to do that, it has to be conversational. It has to know all. It has to be the true source of knowledge for everything.”

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  • Apple confirms that a bug and some apps are causing iPhone 15 models to overheat | CNN Business

    Apple confirms that a bug and some apps are causing iPhone 15 models to overheat | CNN Business

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    CNN
     — 

    Apple is working on a software fix following reports that some of its new iPhone 15 models are overheating.

    The company told CNN the current overheating issues are not a safety risk and will not affect the long-term performance of impacted iPhone models. It also emphasized that iPhones have internal protections for components to help regulate the temperature if it gets too high.

    Apple also told CNN there are several circumstances that are causing its next-generation lineup to heat up. User complaints started to circulate after the latest iPhones hit stores on September 22.

    “We have identified a few conditions which can cause iPhone to run warmer than expected,” Apple told CNN in a statement.

    To start, overheating can occur with some recently updated third-party apps, causing them to “overload the system,” the company said. Those apps include Instagram, Uber and arcade racing game Asphalt 9.

    “We’re working with these app developers on fixes that are in the process of rolling out,” Apple said in a statement.

    It also said it discovered a bug in iOS 17 impacting some users, and plans to roll out a software update to address the issue. It did not comment on when the fix will be made available.

    In addition, Apple said the device may feel warmer during the first few days after setting up or restoring the device because of “increased background activity.”

    Apple’s support page warns users that a device can get hotter when restoring it from a backup, using graphic-intensive apps, streaming high-quality video, and charging it wirelessly.

    “These conditions are normal, and your device will return to a regular temperature when the process is complete or when you finish your activity,” the company states on the website. “If your device doesn’t display a temperature warning, you can keep using your device.”

    The news comes as demand for the iPhone 15 appears strong. Leading up to launch day, analysts at firms such as Wedbush Securities reported iPhone 15 pre-orders tracking better than originally expected, with a heavy demand on its premium iPhone 15 Pro offerings, especially the Pro Max. Delivery and shipment times have moved to late October through mid-November for various Pro models.

    The new iPhones come as Apple reported in August that sales fell for the third consecutive quarter. iPhone revenue came in at $39.7 billion for the third quarter, marking an approximately 2% year-over-year decline, as users update their devices less often.

    But according to Wedbush estimates, about 250 million iPhones have not been upgraded in more than four years. Advancements made to the processor, camera and charging system, along with discounts from mobile carriers, could be more than enough reason for users to finally upgrade this year.

    The iPhone 15 Pro starts at $1,099, and the iPhone 15 Pro Max starts at $1,199. Apple’s entry-level iPhones, the iPhone 15 and iPhone 15 Plus, cost $799 and $899, respectively.

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