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  • Leading AI companies commit to outside testing of AI systems and other safety commitments | CNN Politics

    Leading AI companies commit to outside testing of AI systems and other safety commitments | CNN Politics

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    CNN
     — 

    Microsoft, Google and other leading artificial intelligence companies committed Friday to put new AI systems through outside testing before they are publicly released and to clearly label AI-generated content, the White House announced.

    The pledges are part of a series of voluntary commitments agreed to by the White House and seven leading AI companies – which also include Amazon, Meta, OpenAI, Anthropic and Inflection – aimed at making AI systems and products safer and more trustworthy while Congress and the White House develop more comprehensive regulations to govern the rapidly growing industry. President Joe Biden met with top executives from all seven companies at the White House on Friday.

    In a speech Friday, Biden called the companies commitments “real and concrete,” adding they will help fulfill their “fundamental obligations to Americans to develop safe, secure and trustworthy technologies that benefit society and uphold our values and our shared values.”

    “We’ll see more technology change in the next 10 years, or even in the next few years, than we’ve seen in the last 50 years. That has been an astounding revelation,” Biden said.

    White House officials acknowledge that some of the companies have already enacted some of the commitments but argue they will as a whole raise “the standards for safety, security and trust of AI” and will serve as a “bridge to regulation.”

    “It’s a first step, it’s a bridge to where we need to go,” White House deputy chief of staff Bruce Reed, who has been managing the AI policy process, said in an interview. “It will help industry and government develop the capacities to make sure that AI is safe and secure. And we pushed to move so quickly because this technology is moving farther and faster than anything we’ve seen before.”

    While most of the companies already conduct internal “red-teaming” exercises, the commitments will mark the first time they have all committed to allow outside experts to test their systems before they are released to the public. A red team exercise is designed to simulate what could go wrong with a given technology – such as a cyberattack or its potential to be used by malicious actors – and allows companies to proactively identify shortcomings and prevent negative outcomes.

    Reed said the external red-teaming “will help pave the way for government oversight and regulation,” potentially laying the groundwork for that outside testing to be carried out by a government regulator or licenser.

    The commitments could also lead to widespread watermarking of AI-generated audio and visual content with the aim of combating fraud and misinformation.

    The companies also committed to investing in cybersecurity and “insider threat safeguards,” in particular to protect AI model weights, which are essentially the knowledge base upon which AI systems rely; creating a robust mechanism for third parties to report system vulnerabilities; prioritizing research on the societal risks of AI; and developing and deploying AI systems “to help address society’s greatest challenges,” according to the White House.

    Asked by CNN’s Jake Tapper Friday about worries he has when it comes to AI, Microsoft Vice Chair and President Brad Smith pointed to “what people, bad actors, individuals or countries will do” with the technology.

    “That they’ll use it to undermine our elections, that they will use it to seek to break in to our computer networks. You know, that they’ll use it in ways that will undermine the security of our jobs,” he said.

    But, Smith argued, “the best way to solve these problems is to focus on them, to understand them, to bring people together, and to solve them. And the interesting thing about AI, in my opinion, is that when we do that, and we are determined to do that, we can use AI to defend against these problems far more effectively than we can today.”

    Pressed by Tapper about AI and compensation concerns listed in a recent letter signed by thousands of authors, Smith said: “I don’t want it to undermine anybody’s ability to make a living by creating, by writing. That is the balance that we should all want to strike.”

    All of the commitments are voluntary and White House officials acknowledged that there is no enforcement mechanism to ensure the companies stick to the commitments, some of which also lack specificity.

    Common Sense Media, a child internet-safety organization, commended the White House for taking steps to establish AI guardrails, but warned that “history would indicate that many tech companies do not actually walk the walk on a voluntary pledge to act responsibly and support strong regulations.”

    “If we’ve learned anything from the last decade and the complete mismanagement of social media governance, it’s that many companies offer a lot of lip service,” Common Sense Media CEO James Steyer said in a statement. “And then they prioritize their profits to such an extent that they will not hold themselves accountable for how their products impact the American people, particularly children and families.”

    The federal government’s failure to regulate social media companies at their inception – and the resistance from those companies – has loomed large for White House officials as they have begun crafting potential AI regulations and executive actions in recent months.

    “The main thing we stressed throughout the discussions with the companies was that we should make this as robust as possible,” Reed said. “The tech industry made a mistake in warding off any kind of oversight, legislation and regulation a decade ago and I think that AI is progressing even more rapidly than that and it’s important for this bridge to regulation to be a sturdy one.”

    The commitments were crafted during a monthslong back-and-forth between the AI companies and the White House that began in May when a group of AI executives came to the White House to meet with Biden, Vice President Kamala Harris and White House officials. The White House also sought input from non-industry AI safety and ethics experts.

    White House officials are working to move beyond voluntary commitments, readying a series of executive actions, the first of which is expected to be unveiled later this summer. Officials are also working closely with lawmakers on Capitol Hill to develop more comprehensive legislation to regulate AI.

    “This is a serious responsibility. We have to get it right. There’s an enormous, enormous potential upside as well,” Biden said.

    In the meantime, White House officials say the companies will “immediately” begin implementing the voluntary commitments and hope other companies sign on in the future.

    “We expect that other companies will see how they also have an obligation to live up to the standards of safety, security and trust. And they may choose – and we would welcome them choosing – joining these commitments,” a White House official said.

    This story has been updated with additional details.

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

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

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



    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  • EPA preparing to release strict vehicle emissions rules | CNN Politics

    EPA preparing to release strict vehicle emissions rules | CNN Politics

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    CNN
     — 

    The US Environmental Protection Agency is preparing to release strict new proposed federal emissions standards for light-duty vehicles that, if implemented, would move the US car market decisively toward electric vehicles over the next decade.

    The EPA is considering emissions standards that could make up to two-thirds of new passenger vehicles sold in the US electric by 2032, according to a source familiar with the proposal.

    If implemented, the new greenhouse gas performance standards would start for light-duty vehicles that are model year 2027 and gradually increase through model year 2032.

    By 2032, the rules would ensure that 64% to 67% of all new-car sales in the US would be electric vehicles, according to the source.

    The EPA’s proposal, which was first reported by The New York Times, comes after California air regulators voted last year to ban the sale of new gasoline-powered cars by 2035 and set interim targets to phase these cars out.

    EPA spokesperson Tim Carroll did not comment on the specifics of the proposal but said the agency is working on developing new standards “to accelerate the transition to a zero-emissions transportation future, protecting people and the planet,” as directed by a previous executive order from President Joe Biden.

    “Once the interagency review process is completed, the proposals will be signed, published in the Federal Register, and made available for public review and comment,” Carroll said.

    The new rules could come as soon as Wednesday.

    The EPA proposal is a monumental step toward zero-emissions vehicles, coming as the US tries to keep up with other countries racing toward EV adoption, one expert told CNN.

    “I believe it’s pretty doable,” said Margo Oge, chair of the International Council on Clean Transportation and a former Obama EPA official. “The industry is there. Europe is ahead of the US, China is ahead of Europe, and these companies are global companies.”

    Oge noted that in the US, California is already proposing 70% new zero-emissions vehicle sales by 2030 and other states are planning to adopt California’s rules – meaning much of the US car industry will be transitioning ahead of any proposed federal rule.

    Still, the EPA’s proposal takes a different approach from California’s policy. Whereas California is mandating car companies sell a certain percentage of electric vehicles, the EPA would gradually raise greenhouse gas emissions standards to increasingly stringent levels from 2027 to 2032, pushing the industry toward electric vehicles to meet those high standards.

    The EPA rule would ensure that the rest of the country and the US car industry would follow California’s lead, Oge said.

    Biden has made electrifying the cars that Americans drive a key part of his climate goals. In 2021, the president set a new target that half of all vehicles sold in the US by 2030 would be battery electric, fuel-cell electric or plug-in hybrid.

    The US Treasury Department is set to release rules for new federal electric vehicle tax credits on April 18. While these tax credits are complex and could take time for consumers to take full advantage of, experts hope they will help accelerate the transition to EVs in the US.

    “Given the industry, the [Inflation Reduction Act] and what companies are doing globally, I just don’t see this number as being out of reach,” Oge said.

    The proposed EPA rules will go through a lengthy public comment process and could be changed before they are finalized.

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  • End of an era: Netflix DVD subscribers mourn the service’s imminent demise | CNN Business

    End of an era: Netflix DVD subscribers mourn the service’s imminent demise | CNN Business

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    CNN
     — 

    When Colin McEvoy, a father of two from Bethlehem, Pennsylvania and a self-described film fanatic, wants to watch a Bollywood film or an obscure independent movie, he often turns to Netflix – but not its popular streaming service.

    McEvoy, 39, said he’s been using Netflix’s DVD-by-mail service since 2001, just three years after it launched.

    “I remember I was in high school when I first signed up for it, and the concept was so novel, I had to really convince my dad that it was a legit service and not some sort of Internet scam,” said McEvoy, who uses an old Xbox 360 to play his Netflix DVDs. “Now I have friends who’ve seen my red Netflix envelopes arrive in the mail, and either didn’t remember what they were or couldn’t believe that I still got the DVDs in the mail.”

    Now, McEvoy is one of the DVD-by-mail holdouts mourning the service’s imminent demise. On Tuesday, Netflix announced it will send out its final red envelope on September 29, 2023. marking an end to 25 years of mailing DVDs to members. The company will continue to accept returns of customers’ remaining DVDs until October 27.

    “I’ll be sad to see the service go,” McEvoy said.

    Introduced in 1998 when Netflix first launched, the service promised an easier rental experience than having to drive to the nearest Blockbuster or Hollywood Video. The red envelopes, which have long been synonymous with Netflix itself, littered homes and dorm rooms across the country. But in 2007, Netflix began streaming content online, and gradually shifted the focus away from its original DVD business.

    Today, the idea of receiving a DVD in the mail may sound almost as outdated as receiving a dial up CD, but some longtime customers told CNN they continued to find value in the DVD option, including for its selection, pricing and added perks.

    Brandon Cordy, a 41-year-old graphic designer from Atlanta, said he stuck with DVDs because many digital rentals don’t come with special features or audio commentaries.

    There are other factors, too. Michael Inouye, an analyst at ABI Research, said some consumers may still not have access to reliable or fast enough broadband connections, or simply prefer physical media to digital, much in the way that some audio enthusiasts still purchase and collect CDs and records. Other households may also own cars that still have DVD players inside.

    For Netflix, however, the offering has made less sense in recent years. “Our goal has always been to provide the best service for our members, but as the DVD business continues to shrink, that’s going to become increasingly difficult,” co-CEO Ted Sarandos wrote in a blog post this week.

    Shutting down its DVD business could help Netflix better focus resources as it expands into new markets such as gaming as well as live and interactive content. Its DVD business has also declined significantly in recent years. In 2021, Netflix’s non-streaming revenue – mostly attributable to DVDs – amounted to 0.6% of its revenue, or just over $182 million.

    The cost to operate its DVD business may also be a factor, especially as Netflix rethinks expenses broadly amid heightened streaming competition and broader economic uncertainty. “Moving plastic discs around costs far more money than streaming digital bits,” said Eric Schmitt, senior director analyst at Gartner Research. “Removing and replacing damaged and lost inventory are also cost considerations.”

    Even before Netflix announced the news this week, some longtime subscribers said they could see the writing on the wall.

    “The inventory of available titles, while still vast, had been contracting some over the years with some movies that were once available no longer being so,” Cordy said. “Turnaround times to get a new movie or movies also started to take longer, so I knew it was only a matter of time. But I didn’t want it to end if I could help it.”

    Other DVD subscribers are hoping there may still be a happy ending.

    On Wednesday, Bill Rouhana, the CEO of Chicken Soup for the Soul Entertainment – which owns DVD rental service Redbox – told The Hollywood Reporter he hopes to purchase Netflix’s DVD business. “I’d like to buy it… I wish Netflix would sell me that business instead of shutting it down,” he said. Redbox remains popular despite the shift in streaming, but took a hit during the pandemic because of the lack of new movies and TV shows to fill the boxes.

    A Netflix spokesperson told CNN it has no plans to sell the DVD business and declined to share how it plans to dispose of the discs. But Nick Maggio, a 43-year-old elementary school teacher from Valley Stream, New York, said he hopes the company will sell their individual titles library. “I know there are several titles I’d like to get my hands on,” he said.

    For now, at least, some DVD subscribers plan to focus on watching as many DVDs as they can before the service goes away.

    McEvoy, who also subscribes to Disney+, Hulu, the Criterion channel and Mubi, said he’s determined to finish seeing every film listed in the book “1001 Movies You Must See Before You Die” with the help of Netflix.

    “I absolutely would not have been able to find all of those movies if not for the Netflix DVD service,” he said. “I only have four movies left to go.”

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  • Snapchat’s new AI chatbot is already raising alarms among teens and parents | CNN Business

    Snapchat’s new AI chatbot is already raising alarms among teens and parents | CNN Business

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    CNN
     — 

    Less than a few hours after Snapchat rolled out its My AI chatbot to all users last week, Lyndsi Lee, a mother from East Prairie, Missouri, told her 13-year-old daughter to stay away from the feature.

    “It’s a temporary solution until I know more about it and can set some healthy boundaries and guidelines,” said Lee, who works at a software company. She worries about how My AI presents itself to young users like her daughter on Snapchat.

    The feature is powered by the viral AI chatbot tool ChatGPT – and like ChatGPT, it can offer recommendations, answer questions and converse with users. But Snapchat’s version has some key differences: Users can customize the chatbot’s name, design a custom Bitmoji avatar for it, and bring it into conversations with friends.

    The net effect is that conversing with Snapchat’s chatbot may feel less transactional than visiting ChatGPT’s website. It also may be less clear you’re talking to a computer.

    “I don’t think I’m prepared to know how to teach my kid how to emotionally separate humans and machines when they essentially look the same from her point of view,” Lee said. “I just think there is a really clear line [Snapchat] is crossing.”

    The new tool is facing backlash not only from parents but also from some Snapchat users who are bombarding the app with bad reviews in the app store and criticisms on social media over privacy concerns, “creepy” exchanges and an inability to remove the feature from their chat feed unless they pay for a premium subscription.

    While some may find value in the tool, the mixed reactions hint at the risks companies face in rolling out new generative AI technology to their products, and particularly in products like Snapchat, whose users skew younger.

    Snapchat was an early launch partner when OpenAI opened up access to ChatGPT to third-party businesses, with many more expected to follow. Almost overnight, Snapchat has forced some families and lawmakers to reckon with questions that may have seemed theoretical only months ago.

    In a letter to the CEOs of Snap and other tech companies last month, weeks after My AI was released to Snap’s subscription customers, Democratic Sen. Michael Bennet raised concerns about the interactions the chatbot was having with younger users. In particular, he cited reports that it can provide kids with suggestions for how to lie to their parents.

    “These examples would be disturbing for any social media platform, but they are especially troubling for Snapchat, which almost 60 percent of American teenagers use,” Bennet wrote. “Although Snap concedes My AI is ‘experimental,’ it has nevertheless rushed to enroll American kids and adolescents in its social experiment.”

    In a blog post last week, the company said: “My AI is far from perfect but we’ve made a lot of progress.”

    In the days since its formal launch, Snapchat users have been vocal about their concerns. One user called his interaction “terrifying” after he said it lied about not knowing where the user was located. After the user lightened the conversation, he said the chatbot accurately revealed he lived in Colorado.

    In another TikTok video with more than 1.5 million views, a user named Ariel recorded a song with an intro, chorus and piano chords written by My AI about what it’s like to be a chatbot. When she sent the recorded song back, she said the chatbot denied its involvement with the reply: “I’m sorry, but as an AI language model, I don’t write songs.” Ariel called the exchange “creepy.”

    Other users shared concerns about how the tool understands, interacts with and collects information from photos. “I snapped a picture … and it said ‘nice shoes’ and asked who the people [were] in the photo,” a Snapchat user wrote on Facebook.

    Snapchat told CNN it continues to improve My AI based on community feedback and is working to establish more guardrails to keep its users safe. The company also said that similar to its other tools, users don’t have to interact with My AI if they don’t want to.

    It’s not possible to remove My AI from chat feeds, however, unless a user subscribes to its monthly premium service, Snapchat+. Some teens say they have opted to pay the $3.99 Snapchat+ fee to turn off the tool before promptly canceling the service.

    But not all users dislike the feature.

    One user wrote on Facebook that she’s been asking My AI for homework help. “It gets all of the questions right.” Another noted she’s leaned on it for comfort and advice. “I love my little pocket, bestie!” she wrote. “You can change the Bitmoji [avatar] for it and surprisingly it offers really great advice to some real life situations. … I love the support it gives.”

    ChatGPT, which is trained on vast troves of data online, has previously come under fire for spreading inaccurate information, responding to users in ways they might find inappropriate and enabling students to cheat. But Snapchat’s integration of the tool risks heightening some of these issues, and adding new ones.

    Alexandra Hamlet, a clinical psychologist in New York City, said the parents of some of her patients have expressed concern about how their teenager could interact with Snapchat’s tool. There’s also concern around chatbots giving advice and about mental health because AI tools can reinforce someone’s confirmation bias, making it easier for users to seek out interactions that confirm their unhelpful beliefs.

    “If a teen is in a negative mood and does not have the awareness desire to feel better, they may seek out a conversation with a chatbot that they know will make them feel worse,” she said. “Over time, having interactions like these can erode a teens’ sense of worth, despite their knowing that they are really talking to a bot. In an emotional state of mind, it becomes less possible for an individual to consider this type of logic.”

    For now, the onus is on parents to start meaningful conversations with their teens about best practices for communicating with AI, especially as the tools start to show up in more popular apps and services.

    Sinead Bovell, the founder of WAYE, a startup that helps prepare youth for future with advanced technologies, said parents need to make it very clear “chatbots are not your friend.”

    “They’re also not your therapists or a trusted adviser, and anyone interacting with them needs to be very cautious, especially teenagers who may be more susceptible to believing what they say,” she said.

    “Parents should be talking to their kids now about how they shouldn’t share anything personal with a chatbot that they would a friend – even though from a user design perspective, the chatbot exists in the same corner of Snapchat.”

    She added that federal regulation that would require companies to abide by specific protocols is also needed to keep up the rapid pace of AI advancement.

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  • Chinese police detain man for allegedly using ChatGPT to spread rumors online | CNN Business

    Chinese police detain man for allegedly using ChatGPT to spread rumors online | CNN Business

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    Hong Kong
    CNN
     — 

    Police in China have detained a man they say used ChatGPT to create fake news and spread it online, in what state media has called the country’s first criminal case related to the AI chatbot.

    According to a statement from police in the northwest province of Gansu, the suspect allegedly used ChatGPT to generate a bogus report about a train crash, which he then posted online for profit. The article received about 15,000 views, the police said in Sunday’s statement.

    ChatGPT, developed by Microsoft

    (MSFT)
    -backed OpenAI, is banned in China, though internet users can use virtual private networks (VPN) to access it.

    Train crashes have been a sensitive issue in China since 2011, when authorities faced pressure to explain why state media had failed to provide timely updates on a bullet train collision in the city of Wenzhou that resulted in 40 deaths.

    Gansu authorities said the suspect, surnamed Hong, was questioned in the city of Dongguan in southern Guangdong province on May 5.

    “Hong used modern technology to fabricate false information, spreading it on the internet, which was widely disseminated,” the Gansu police said in the statement.

    “His behavior amounted to picking quarrels and provoking trouble,” they added, explaining the offense that Hong was accused of committing.

    Police said the arrest was the first in Gansu since China’s Cyberspace Administration enacted new regulations in January to rein in the use of deep fakes. State broadcaster CGTN says it was the country’s first arrest of a person accused of using ChatGPT to fabricate and spread fake news.

    Formally known as deep synthesis, deep fake refers to highly realistic textual and visual content generated by artificial intelligence.

    The new legislation bars users from generating deep fake content on topics already prohibited by existing laws on China’s heavily censored internet. It also outlines take down procedures for content considered false or harmful.

    The arrest also came amid a 100-day campaign launched by the internet branch of the Ministry of Public Security in March to crack down on the spread of internet rumors.

    Since the beginning of the year, Chinese internet giants such as Baidu

    (BIDU)
    and Alibaba

    (BABA)
    have sought to catch up with OpenAI, launching their own versions of the ChatGPT service.

    Baidu unveiled “Wenxin Yiyan” or “ERNIE Bot” in March. Two months later, Alibaba launched “Tongyi Qianwen,” which roughly translates as seeking truth by asking a thousand questions.

    In draft guidelines issued last month to solicit public feedback, China’s cyberspace regulator said generative AI services would be required to undergo security reviews before they can operate.

    Service providers will also be required to verify users’ real identities, as well as providing details about the scale and type of data they use, their basic algorithms and other technical information.

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

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

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    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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  • AI chip boom sends Nvidia’s stock surging after whopper of a quarter | CNN Business

    AI chip boom sends Nvidia’s stock surging after whopper of a quarter | CNN Business

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    New York
    CNN
     — 

    The AI boom is here, and Nvidia is reaping all the benefits.

    Shares of Nvidia

    (NVDA)
    exploded 28% higher Thursday after reporting earnings and sales that surged well above Wall Street’s already lofty expectations. That was enough to make investors temporarily forget about America’s dangerous debt ceiling standoff, sending the broader stock market higher — even after credit rating agency Fitch warned late Wednesday that America could soon lose its sterling AAA debt rating.

    Nvidia makes chips that power generative AI, a type of artificial intelligence that can create new content, such as text and images, in response to user prompts. That’s the kind of AI underlying ChatGPT, Google’s Bard, Dall-E and many of the other new AI technologies.

    “The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, Nvidia’s CEO, in a statement. “A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”

    Huang said Nvidia is increasing supply of its entire suite of data center products to meet “surging demand” for them.

    Last quarter, Nvidia’s profit surged 26% to $2 billion, and sales rose 19% to $7.2 billion, each easily surpassing Wall Street analysts’ forecasts. Nvidia’s outlook for the current quarter was also significantly — about 50% — higher than analysts’ predictions.

    Nvidia’s stock is up nearly 110% this year.

    “There is not one better indicator around underlying AI demand going on … than the foundational Nvidia story,” said Dan Ives, analyst at Wedbush. “We view Nvidia at the core hearts and lungs of the AI revolution.”

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

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

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    CNN
     — 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    This story has been updated with additional information.

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  • Here’s how much each state will get in the $42.5 billion broadband infrastructure plan | CNN Business

    Here’s how much each state will get in the $42.5 billion broadband infrastructure plan | CNN Business

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    Washington
    CNN
     — 

    The Biden administration on Monday outlined how states across the country will be receiving billions of dollars in federal funding for high-speed internet access, highlighting the US government’s push to bring connectivity to more Americans and to close the digital divide.

    More than $42 billion from the 2021 bipartisan infrastructure law will be distributed to US states and territories for building internet access, the White House said — with Texas eligible for the largest award of more than $3.3 billion, followed by California, which could receive more than $1.8 billion.

    “We’re talking today about a major investment that we’re making in affordable, high-speed internet, all across the country,” Biden said in a speech Monday, describing internet access as a critical economic resource allowing children to do their homework, for workers to find jobs and for patients to access health care.

    “I’ve gotten letters and emails from across the country from people who are thrilled that after so many years of waiting, they are finally going to get high-speed internet,” Biden said, citing one message he received from an Iowa woman who described the development as “the best thing that’s happened in rural America since the Rural Electrification Act,” referring to the push under President Franklin Delano Roosevelt to bring electricity to farms and ranches nationwide.

    All US states and territories have been awarded at least some funding, starting with the US Virgin Islands, which is eligible for $27 million under the initiative known as the Broadband Equity, Access, and Deployment (BEAD) program.

    The BEAD program marks one of the largest-ever infusions of federal money for bringing disconnected households and businesses online. And it reflects months of work by the US government to design new and updated broadband maps showing which areas of the country remain unserved or under-served.

    Finalized by the Federal Communications Commission last month, the new maps show that 7% of US households and businesses, representing 8.5 million physical locations and tens of millions of individual Americans, do not have broadband internet access, which is defined as internet download speeds of at least 25 megabits per second. The new maps provide information about internet connectivity at a granular level, whereas previous maps assessed connectivity only at a census-block level. The older maps also considered a census block to be served if just one household in that block had broadband access, even if many of its surrounding neighbors did not — leaving many Americans to report that they had no high-speed internet even when the official maps claimed that they did.

    The updated maps allowed the US government to calculate which states had the greatest need for broadband funding and to distribute the infrastructure law’s resources accordingly. States and territories may begin applying for the funds as soon as July 1, the White House said. After the applications are approved by the Commerce Department, state officials will gain access to at least 20% of their eligible awards.

    Under the infrastructure law, US states had been guaranteed at least $100 million in BEAD funding, while US territories were promised at least $25 million.

    Nineteen states received more than $1 billion in the final allocation, the White House said, adding that the 10 states receiving the most funding were Alabama, California, Georgia, Louisiana, Michigan, Missouri, North Carolina, Texas, Virginia and Washington.

    And it complements another $23 billion across five separate broadband access programs included in the legislation, such as a program specifically aimed at Tribal connectivity and another for low-income households. And it follows a $25 billion investment under the American Rescue Plan, the 2021 Covid-19 stimulus package.

    Monday’s announcement marked the launch of a three-week nationwide tour by President Joe Biden and other White House officials to tout the administration’s economic plan.

    Here’s how much each state received:

    • Alabama: $1,401,221,901.77
    • Alaska: $1,017,139,672.42
    • Arizona: $993,112,231.37
    • Arkansas: $1,024,303,993.86
    • California: $1,864,136,508.93
    • Colorado: $826,522,650.41
    • Connecticut: $144,180,792.71
    • Delaware: $107,748,384.66
    • District of Columbia: $100,694,786.93
    • Florida: $1,169,947,392.70
    • Georgia: $1,307,214,371.30
    • Hawaii: $149,484,493.57
    • Idaho: $583,256,249.88
    • Illinois: $1,040,420,751.50
    • Indiana: $868,109,929.79
    • Iowa: $415,331,313.00
    • Kansas: $451,725,998.15
    • Kentucky: $1,086,172,536.86
    • Louisiana: $1,355,554,552.94
    • Maine: $271,977,723.07
    • Maryland: $267,738,400.71
    • Massachusetts: $147,422,464.39
    • Michigan: $1,559,362,479.29
    • Minnesota: $651,839,368.20
    • Mississippi: $1,203,561,563.05
    • Missouri: $1,736,302,708.39
    • Montana: $628,973,798.59
    • Nebraska: $405,281,070.41
    • Nevada: $416,666,229.74
    • New Hampshire: $196,560,278.97
    • New Jersey: $263,689,548.65
    • New Mexico: $675,372,311.86
    • New York: $664,618,251.49
    • North Carolina: $1,532,999,481.15
    • North Dakota: $130,162,815.12
    • Ohio: $793,688,107.63
    • Oklahoma: $797,435,691.25
    • Oregon: $688,914,932.17
    • Pennsylvania: $1,161,778,272.41
    • Rhode Island: $108,718,820.75
    • South Carolina: $551,535,983.05
    • South Dakota: $207,227,523.92
    • Tennessee: $813,319,680.22
    • Texas: $3,312,616,455.45
    • Utah: $317,399,741.54
    • Vermont: $228,913,019.08
    • Virginia: $1,481,489,572.87
    • Washington: $1,227,742,066.30
    • West Virginia: $1,210,800,969.85
    • Wisconsin: $1,055,823,573.71
    • Wyoming: $347,877,921.27
    • American Samoa: $37,564,827.53
    • Guam: $156,831,733.59
    • Northern Mariana Islands: $80,796,709.02
    • Puerto Rico: $334,614,151.70
    • U.S. Virgin Islands: $27,103,240.86

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  • Apple is now worth $3 trillion, boosted by the Nasdaq’s best start in 40 years | CNN Business

    Apple is now worth $3 trillion, boosted by the Nasdaq’s best start in 40 years | CNN Business

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    New York
    CNN
     — 

    Apple’s stock ended trading Friday valued at $3 trillion, the only company ever to reach that milestone. It has been riding a Big Tech stock wave that has given the Nasdaq its best first half gain in 40 years.

    Shares of Apple rose more than 2% Friday at a record $193.97. With 15.7 billion shares outstanding, that stock price pushed Apple to its historic market value.

    Apple has been here once before: On January 3, 2022, Apple hit the $3 trillion mark during intraday trading, but it failed to close there.

    The company’s stock closed Thursday at a record high share price for the third-straight day, but it merely budged 0.2% higher. Apple easily surpassed the $190.73 level it needed to break $3 trillion at Friday’s market open.

    The sky-high valuation for the tech giant comes on the heels of its risky launch of the Apple Vision Pro earlier this month and a stronger-than-expected quarterly earnings report in May – even though sales and profit slumped.

    The Vision Pro, which will go on sale next year, impressed tech journalists who got an early preview of the augmented reality device. But it is entering a nascent market with little mainstream consumer adoption. Apple plans to charge a hefty $3,499 for its headset, which currently has limited apps and experiences, and requires users to stay tethered to a battery pack the size of an iPhone.

    Apple’s

    (AAPL)
    stock has skyrocketed 49% this year, boosted by a broader surge in Big Tech stocks as investors have jumped onto the AI bandwagon. Nvidia

    (NVDA)
    leads the S&P 500 with a 190% jump this year, followed by Meta

    (META)
    at 138%.

    The Nasdaq grew by 31.7% in the first half of the year, notching its largest first half percentage gain since 1983.

    This year’s stock market success for Apple comes in sharp contrast to 2022. At the start of 2023, Apple’s market cap fell below $2 trillion in trading for the first time since early 2021.

    Wall Street ended the first half of 2023 on a positive note as the tech rally led markets to close higher for both the month and second quarter of the year.

    The S&P 500 gained 6.5% in June, its best monthly performance since January. It also notched its third consecutive quarter of growth, up 8.3% in the second quarter. The S&P 500 is about 15.9% higher so far this year, its best half since 2019.

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  • Meta takes aim at Twitter with new Threads app | CNN Business

    Meta takes aim at Twitter with new Threads app | CNN Business

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    London
    CNN
     — 

    The rivalry between Mark Zuckerberg and Elon Musk has just kicked up a notch.

    Zuckerberg’s Meta, which owns Facebook and Instagram, has teased a new app that is set to take on Twitter by offering a rival space for real-time conversations online.

    The app is called Threads and it is expected to go live Thursday, according to a listing in the App Store. The app appears to have many similarities to Twitter — the App Store description emphasizes conversations, as well as the potential to build a following and connect with like-minded people.

    “Threads is where communities come together to discuss everything from the topics you care about today to what’ll be trending tomorrow,” it reads.

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

    The move by Meta comes amid a fresh bout of turmoil at Twitter, which experienced an outage over the weekend, followed by an announcement that the site had imposed temporary limits on how many tweets its users are able to read while using the app.

    Musk, the platform’s billionaire owner, said these restrictions had been applied “to address extreme levels of data scraping and system manipulation.”

    Commenting on the launch of Threads Monday, Musk tweeted: “Thank goodness they’re so sanely run,” parroting reported comments by Meta executives that appeared to take a jab at Musk’s erratic behavior.

    Since taking Twitter private in October, Musk has turned the social media platform on its head, alienating advertisers and some of its highest-profile users.

    He is now looking for ways to return the platform to growth. Twitter announced Monday that users would soon need to pay for TweetDeck, a tool that allows people to organize and easily monitor the accounts they follow.

    Twitter is also attempting to encroach on Meta’s domain.

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

    Musk and Zuckerberg’s rivalry could soon extend beyond business and into the ring. Last month, the two men discussed the possibility of a cage fight, with the Las Vegas arena that hosts the Ultimate Fighting Championship seemingly the favorite location for the match.

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  • ‘It almost doubled our workload’: AI is supposed to make jobs easier. These workers disagree | CNN Business

    ‘It almost doubled our workload’: AI is supposed to make jobs easier. These workers disagree | CNN Business

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    CNN
     — 

    A new crop of artificial intelligence tools carries the promise of streamlining tasks, improving efficiency and boosting productivity in the workplace. But that hasn’t been Neil Clarke’s experience so far.

    Clarke, an editor and publisher, said he recently had to temporarily shutter the online submission form for his science fiction and fantasy magazine, Clarkesworld, after his team was inundated with a deluge of “consistently bad” AI-generated submissions.

    “They’re some of the worst stories we’ve seen, actually,” Clarke said of the hundreds of pieces of AI-produced content he and his team of humans now must manually parse through. “But it’s more of the problem of volume, not quality. The quantity is burying us.”

    “It almost doubled our workload,” he added, describing the latest AI tools as “a thorn in our side for the last few months.” Clarke said that he anticipates his team is going to have to close submissions again. “It’s going to reach a point where we can’t handle it.”

    Since ChatGPT launched late last year, many of the tech world’s most prominent figures have waxed poetic about how AI has the potential to boost productivity, help us all work less and create new and better jobs in the future. “In the next few years, the main impact of AI on work will be to help people do their jobs more efficiently,” Microsoft co-founder Bill Gates said in a blog post recently.

    But as is often the case with tech, the long-term impact isn’t always clear or the same across industries and markets. Moreover, the road to a techno-utopia is often bumpy and plagued with unintended consequences, whether it’s lawyers fined for submitting fake court citations from ChatGPT or a small publication buried under an avalanche of computer-generated submissions.

    Big Tech companies are now rushing to jump on the AI bandwagon, pledging significant investments into new AI-powered tools that promise to streamline work. These tools can help people quickly draft emails, make presentations and summarize large datasets or texts.

    In a recent study, researchers at the Massachusetts Institute of Technology found that access to ChatGPT increased productivity for workers who were assigned tasks like writing cover letters, “delicate” emails and cost-benefit analyses. “I think what our study shows is that this kind of technology has important applications in white collar work. It’s a useful technology. But it’s still too early to tell if it will be good or bad, or how exactly it’s going to cause society to adjust,” Shakked Noy, a PhD student in MIT’s Department of Economics, who co-authored the paper, said in a statement.

    Mathias Cormann, the secretary-general of the Organization for Economic Co-operation and Development recently said the intergovernmental organization has found that AI can improve some aspects of job quality, but there are tradeoffs.

    “Workers do report, though, that the intensity of their work has increased after the adoption of AI in their workplaces,” Cormann said in public remarks, pointing to the findings of a report released by the organization. The report also found that for non-AI specialists and non-managers, the use of AI had only a “minimal impact on wages so far” – meaning that for the average employee, the work is scaling up, but the pay isn’t.

    Ivana Saula, the research director for the International Association of Machinists and Aerospace Workers, said that workers in her union have said they feel like “guinea pigs” as employers rush to roll out AI-powered tools on the job.

    And it hasn’t always gone smoothly, Saula said. The implementation of these new tech tools has often led to more “residual tasks that a human still needs to do.” This can include picking up additional logistics tasks that a machine simply can’t do, Saula said, adding more time and pressure to a daily work flow.

    The union represents a broad range of workers, including in air transportation, health care, public service, manufacturing and the nuclear industry, Saula said.

    “It’s never just clean cut, where the machine can entirely replace the human,” Saula told CNN. “It can replace certain aspects of what a worker does, but there’s some tasks that are outstanding that get placed on whoever remains.”

    Workers are also “saying that my workload is heavier” after the implementation of new AI tools, Saula said, and “the intensity at which I work is much faster because now it’s being set by the machine.” She added that the feedback they are getting from workers shows how important it is to “actually involve workers in the process of implementation.”

    “Because there’s knowledge on the ground, on the frontlines, that employers need to be aware of,” she said. “And oftentimes, I think there’s disconnects between frontline workers and what happens on shop floors, and upper management, and not to mention CEOs.”

    Perhaps nowhere are the pros and cons of AI for businesses as apparent as in the media industry. These tools offer the promise of accelerating if not automating copywriting, advertising and certain editorial work, but there have already been some notable blunders.

    News outlet CNET had to issue “substantial” corrections earlier this year after experimenting with using an AI tool to write stories. And what was supposed to be a simple AI-written story on Star Wars published by Gizmodo earlier this month similarly required a correction and resulted in employee turmoil. But both outlets have signaled they will still move forward with using the technology to assist in newsrooms.

    Others like Clarke, the publisher, have tried to combat the fallout from the rise of AI by relying on more AI. Clarke said he and his team turned to AI-powered detectors of AI-generated work to deal with the deluge of submissions but found these tools weren’t helpful because of how unreliably they flag “false positives and false negatives,” especially for writers whose second language is English.

    “You listen to these AI experts, they go on about how these things are going to do amazing breakthroughs in different fields,” Clarke said. “But those aren’t the fields they’re currently working in.”

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  • Taiwan’s TSMC to invest $2.9 billion in new plant as demand for AI chips soars | CNN Business

    Taiwan’s TSMC to invest $2.9 billion in new plant as demand for AI chips soars | CNN Business

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    Hong Kong
    CNN
     — 

    TSMC, the world’s largest chipmaker, says it plans to invest nearly 90 billion New Taiwan dollars ($2.9 billion) to build an advanced chip plant in Taiwan, as it expands production to meet booming demand for artificial intelligence (AI) products.

    Last week, CEO C.C. Wei told analysts the company plans to roughly double its capacity for advanced packaging in 2024 compared to 2023, in order to meet “strong demand” for AI chips from its customers, which include Nvidia

    (NVDA)
    and AMD.

    Advanced packaging in the semiconductor industry involves using high-tech methods to aggregate components from various wafers in order to create a more powerful computer chip.

    TSMC

    (TSM)
    said the new plant is expected to create 1,500 jobs.

    “To meet market needs, TSMC is planning to establish an advanced packaging fab in the Tongluo Science Park,” the company told CNN in a statement, referring to fabrication plants — the technical term for semiconductor factories.

    The science park is located in Miaoli County, south of the firm’s main facilities in Hsinchu, near Taipei.

    TSMC on Thursday reported a 23% fall in net profit for the second quarter, compared to the same period last year, as a global economic downturn took a toll on overall demand — even as customers clamored for more of its AI chips.

    Chips manufactured by TSMC for customers like Nvidia are the muscle behind generative AI, a type of artificial intelligence that can create new content, such as text and images, in response to user prompts.

    That’s the kind of AI underlying ChatGPT, Google

    (GOOGL)
    ’s Bard, Dall-E and many of the other new AI technologies.

    TSMC is considered a national treasure in Taiwan, supplying semiconductors to global tech giants including Apple

    (AAPL)
    and Qualcomm

    (QCOM)
    .

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  • Apple launches buy now, pay later service | CNN Business

    Apple launches buy now, pay later service | CNN Business

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    New York
    CNN
     — 

    Apple on Tuesday launched an option in its digital wallet allowing customers to pay for online purchases in installments, making it the latest company to embrace the buy now, pay later trend.

    The new feature, called Apple Pay Later, lets customers split payments for purchases into four installments over six weeks, with the first installment due at the time of purchase. Apple users can also apply for a loan within the Wallet app, ranging from $50 to $1000, with no interest or fees, to make online or in-app purchases.

    The payment option is rolling out to select users in the United States now, with plans to offer it to all eligible customers over the next several months, according to a company release. Apple first teased the feature last year.

    Apple’s move comes as a growing number of consumers have turned to buy now, pay later services to stretch their budgets at a time of high inflation and broader economic uncertainty. Other popular services that offer the same payment option include Affirm, Klarna and Afterpay.

    But some economists and consumer advocates have raised concerns that these services could cause shoppers to take on more debt.

    The installment process makes it seem like someone is paying practically nothing for the goods or service they’re acquiring, Terri R. Bradford, a research specialist in payment systems for the Kansas City Federal Reserve, previously told CNN. “So the possibility is that you could, in your mind, think of everything that you’re buying in those four installments and, as a result, take on more debt than you would if you had to pay for them in full each and every time.”

    But Apple says the new feature is “designed with users’ financial health in mind.”

    “There’s no one-size-fits-all approach when it comes to how people manage their finances,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, in Tuesday’s release. “Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later.”

    Apple users will be able to track and manage upcoming loan payments in the Wallet app. Any loan application can also be done in the app with no impact on credit, according to the company.

    Apple’s Pay Later option is enabled through the Mastercard Installments program.

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  • Inside the long and winding road to Trump’s historic indictment | CNN Politics

    Inside the long and winding road to Trump’s historic indictment | CNN Politics

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    CNN
     — 

    The New York grand jury hearing the case against Donald Trump was set to break for several weeks. The former president’s lawyers believed on Wednesday afternoon they had at least a small reprieve from a possible indictment. Trump praised the perceived delay.

    Manhattan District Attorney Alvin Bragg had other plans.

    Thursday afternoon, Bragg asked the grand jury to return an historic indictment against Trump, the first time that a current or former US president has been indicted. The surprise move was the final twist in an investigation that’s taken a long and winding road to the history-making charges that were returned this week.

    An indictment had been anticipated early last week – including by Trump himself, who promoted a theory he would be “arrested” – as law enforcement agencies prepared for the logistics of arraigning a former president. But after the testimony of Robert Costello – a lawyer who appeared on Trump’s behalf seeking to undercut the credibility of Trump’s former attorney and fixer Michael Cohen – Bragg appeared to hit the pause button.

    Costello’s testimony caused the district attorney’s office to reassess whether Costello should be the last witness the grand jury heard before prosecutors asked them to vote on an indictment, multiple sources told CNN.

    So they waited. The next day the grand jury was scheduled to meet, jurors were told not to come in. Bragg and his top prosecutors huddled the rest of the week and over the weekend to determine a strategy that would effectively counter Costello’s testimony in the grand jury.

    They called two additional witnesses. David Pecker, the former head of the company that publishes the National Enquirer, appeared on Monday. The other witness, who has still not been identified, testified on Thursday for 35 minutes in front of the grand jury – just before prosecutors asked them to vote on the indictment of more than 30 counts, the sources said.

    Trump and his attorneys, thinking Bragg might be reconsidering a potential indictment, were all caught off-guard, sources said. Some of Trump’s advisers had even left Palm Beach on Wednesday following news reports that the grand jury was taking a break, the sources added.

    After the indictment, Trump ate dinner with his wife, Melania, Thursday evening and smiled while he greeted guests at his Mar-a-Lago club, according to a source familiar with the event.

    The Manhattan district attorney’s investigation into Trump has been ongoing for years, dating back to Bragg’s predecessor, Cy Vance. Its focus shifted by mid-2020 to the accuracy of the Trump Org.’s financial statements. At the time, prosecutors debated legal theories around the hush money payments and thought they were a long shot. At several points, the wide-ranging investigation seemed to have been winding down – to the point that prosecutors resigned in protest last year. One even wrote a book critical of Bragg for not pursuing charges against Trump released just last month.

    The specific charges against Trump still remain under seal and are expected to be unveiled Tuesday when Trump is set to be arraigned.

    There are questions swirling even among Trump critics over whether the Manhattan district attorney’s case is the strongest against the former president amid additional investigations in Washington, DC, and Georgia over both his efforts to overturn the 2020 election and his handling of classified documents at his Florida resort.

    Trump could still face charges in those probes, too, which are separate from the New York indictment.

    But it’s the Manhattan indictment, dating back to a payment made before the 2016 presidential election, that now sees Trump facing down criminal charges for the first time as he runs again for the White House in 2024.

    It was just weeks before the 2016 election when Cohen, Trump’s then-lawyer, paid adult film actress Stormy Daniels $130,000 to keep silent about an alleged affair with Trump. (Trump has denied the affair.) Cohen was later reimbursed $420,000 by the Trump Organization to cover the original payment and tax liabilities and to reward him with a bonus.

    That payment and reimbursement are keys at issue in the investigation.

    Cohen also helped arrange a $150,000 payment from the publisher of the National Enquirer to Karen McDougal to kill her story claiming a 10-month affair with Trump. Trump also denies an affair with McDougal. During the grand jury proceedings, the district attorney’s office has asked questions about the “catch and kill” deal with McDougal.

    When Cohen was charged by federal prosecutors in New York in 2018 and pleaded guilty, he said he was acting at the direction of Trump when he made the payment.

    At the time, federal prosecutors had determined they could not seek to indict Trump in the scheme because of US Justice Department regulations against charging a sitting president. In 2021, after Trump left the White House, prosecutors in the Southern District of New York decided not to pursue a case against Trump, according to a recent book from CNN senior legal analyst Elie Honig.

    But then-Manhattan District Attorney Vance’s team had already picked up the investigation into the hush money payments and begun looking at potential state law violations. By summer 2019, they sent subpoenas to the Trump Org., other witnesses, and met with Cohen, who was serving a three-year prison sentence.

    Vance’s investigation broadened to the Trump Org.’s finances. New York prosecutors went to the Supreme Court twice to enforce a subpoena for Trump’s tax records from his long-time accounting firm Mazars USA. The Trump Org. and its long-time chief financial officer Allen Weisselberg were indicted on tax fraud and other charges in June 2021 for allegedly running an off-the-books compensation scheme for more than a decade.

    Weisselberg pleaded guilty to the charges last year and is currently serving a five-month sentence at Rikers Island. Prosecutors had hoped to flip Weisselberg to cooperate against Trump, but he would not tie Trump to any wrongdoing.

    Disagreements about the pace of the investigation had caused at least three career prosecutors to move off the investigation. They were concerned that the investigation was moving too quickly, without clear evidence to support possible charges, CNN and others reported last year.

    Vance authorized the attorneys on the team to present evidence to the grand jury near the end of 2021, but he did not seek an indictment. Those close to Vance say he wanted to leave the decision to Bragg, the newly elected district attorney.

    Bragg, a Democrat, took office in January 2022. Less than two months into his tenure, two top prosecutors who had worked on the Trump case under Vance abruptly resigned amid a disagreement in the office over the strength of the case against Trump.

    On February 22, 2022, Bragg informed the prosecution team that he was not prepared to authorize charges against Trump, CNN reported. The prosecutors, Carey Dunne and Mark Pomerantz, resigned the next day.

    In his resignation letter, Pomerantz said he believed Trump was guilty of numerous felonies and said that Bragg’s decision to not move forward with an indictment at the time was “wrong” and a “grave failure of justice.”

    “I and others believe that your decision not to authorize prosecution now will doom any future prospects that Mr. Trump will be prosecuted for the criminal conduct we have been investigating,” Pomerantz wrote in the letter, which was reviewed by CNN.

    At that point, the investigation was focused on Trump’s financial statements and whether he knowingly misled lenders, insurers, and others by providing them false or misleading information about the value of his properties.

    Prosecutors were building a wide-ranging falsified business records case to include years of financial statements and the hush money payments, people with direct knowledge of the investigation told CNN. But at the time, those prosecutors believed there was a good chance a felony charge related to the hush money payment would be dismissed by a judge because it was a novel legal theory.

    Dunne and Pomerantz pushed to seek an indictment of Trump tied to the sweeping falsified business records case, but others, including some career prosecutors, were skeptical that they could win a conviction at trial, in part because of the difficulty in proving Trump’s criminal intent.

    Despite the resignations of the prosecutors on the Trump case, Bragg’s office reiterated at the time that the investigation was ongoing.

    “Investigations are not linear so we are following the leads in front of us. That’s what we’re doing,” Bragg told CNN in April 2022. “The investigation is very much ongoing.”

    At the same time that Bragg’s criminal investigation into Trump lingered last year, another prosecution against the Trump Org. moved forward. In December, two Trump Org. entities were convicted at trial on 17 counts and were ordered to pay $1.6 million, the maximum penalty, the following month.

    Trump was not personally charged in that case. But it appeared to embolden Bragg’s team to sharpen their focus back to Trump and the hush money payment.

    Cohen was brought back in to meet with Manhattan prosecutors. Cohen had previously met with prosecutors in the district attorney’s office 13 times over the course of the investigation. But the January meeting was the first in more than a year – and a clear sign of the direction prosecutors were taking.

    As investigators inched closer to a charging decision, Bragg was faced with more public pressure to indict Trump: Pomerantz, the prosecutor who had resigned a year prior, released a book about the investigation that argued Trump should be charged and criticized Bragg for failing to do so.

    “Every single member of the prosecution team thought that his guilt was established,” Pomerantz said in a February interview on “CNN This Morning.”

    Asked about Bragg’s hesitance, Pomerantz said: “I can’t speak in detail about what went through his mind. I can surmise from what happened at the time and statements that he’s made since that he had misgivings about the strength of the case.”

    Bragg responded in a statement saying that more work was needed on the case. “Mr. Pomerantz’s plane wasn’t ready for takeoff,” Bragg said.

    Prosecutors continued bringing in witnesses, including Pecker, the former head of American Media Inc., which publishes the National Enquirer. In February, Trump Org. controller Jeffrey McConney testified before the grand jury. Members of Trump’s 2016 campaign, including Kellyanne Conway and Hope Hicks, also appeared. In March, Daniels met with prosecutors, her attorney said.

    And Cohen, after his numerous meetings with prosecutors, finally testified before the grand jury in March.

    The second week of March, prosecutors gave the clearest sign to date that the investigation was nearing its conclusion – they invited Trump to appear before the grand jury.

    Potential defendants in New York are required by law to be notified and invited to appear before a grand jury weighing charges.

    Behind the scenes, Trump attorney Susan Necheles told CNN she met with New York prosecutors to argue why Trump shouldn’t be indicted and that prosecutors didn’t articulate the specific charges they are considering.

    Trump, meanwhile, took to his social media to predict his impending indictment. In a post attacking Bragg on March 18, Trump said the “leading Republican candidate and former president of the United States will be arrested on Tuesday of next week.”

    “Protest, take our nation back,” Trump added, echoing the calls he made while he tried to overturn the 2020 election.

    Trump’s prediction would turn out to be premature.

    Trump’s call for protests after a potential indictment led to meetings between senior staff members from the district attorney’s office, the New York Police Department and the New York State Court Officers – who provide security at the criminal court building in lower Manhattan.

    Trump’s lawyers also made a last-ditch effort to fend off an indictment. At the behest of Trump’s team, Costello, who advised Cohen in 2018, provided emails and testified to the grand jury on Monday, March 20, alleging that Cohen had said in 2018 that he had decided on his own to make the payment to Daniels.

    Costello’s testimony appeared to delay a possible indictment – for a brief time at least.

    During the void, Trump continued to launch verbal insults against Bragg, calling him a “degenerate psychopath.” And four Republican chairmen of the most powerful House committees wrote to Bragg asking him to testify, which Bragg’s office said was unprecedented interference in a local investigation. An envelope containing a suspicious white powder and a death threat to Bragg was to delivered to the building where the grand jury meets – the powder was deemed nonhazardous.

    The grand jury would not meet again until Monday, March 27, when Pecker was ushered back to the grand jury in a government vehicle with tinted windows in a failed effort to evade detection by the media camped outside of the building where the grand jury meets.

    Pecker, a longtime friend of Trump’s who had a history of orchestrating so-called “catch and kill” deals while at the National Enquirer, was involved with the Daniels’ deal from the beginning.

    Two days after Pecker’s testimony, there were multiple reports that the grand jury was going into a pre-planned break in April. The grand jury was set to meet Thursday but it was not expected to hear the Trump case.

    Instead, the grand jury heard from one last witness in the Trump case on Thursday, whose identity is still unknown. And then the grand jury shook up the American political system by voting to indict a former president and 2024 candidate for the White House.

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  • TikTok banned from school-owned devices at all Florida state universities | CNN Business

    TikTok banned from school-owned devices at all Florida state universities | CNN Business

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    New York
    CNN
     — 

    The State University System of Florida Board of Governors has banned the social media app TikTok, along with some other software, applications, and developers, from use on university-owned devices “due to the continued and increasing landscape of cyber threats.”

    In a memo sent to state university system presidents on Wednesday, Chancellor Ray Rodrigues said, “This regulation requires institutions to remove technologies published in the State University System (SUS) Prohibited Technologies List from any university-owned device and to block network traffic associated with these technologies.”

    The ban is effective immediately, the memo said.

    “Data privacy, particularly concerning student data and faculty research, is a critical priority for the State University System of Florida,” the Board of Governors said in a statement to CNN.

    “Therefore, at a March 29 meeting of the Florida Board of Governors, the Board unanimously approved an emergency regulation prohibiting the use of TikTok and other foreign actors identified as an immediate national security risk, across our 12 public university campuses,” according to the Board of Governors.

    In addition to TikTok, the prohibited technologies include Kaspersky, VKontakte, Tencent QQ, WeChat and any subsidiary or affiliate.

    CNN reached out to them for comment.

    TikTok spokesperson Hilary McQuaide said “TikTok has taken unprecedented actions to address national security concerns by securing U.S. user data on U.S. soil. The best way to address concerns about national security is with the transparent, U.S.-based protection of U.S. user data and systems, with robust third-party monitoring, vetting, and verification, which we are already implementing.”

    McQuaide added “TikTok is enjoyed by more than 150 million Americans including university and college students and teachers to engage in the classroom.”

    Bans and regulations of TikTok in particular, and of social media sites in general, have been increasing in the US and Europe as concerns over privacy, national security and child safety mount.

    Late last month, the governor of Utah signed a bill which requires teens to get parental approval to use social media. Earlier this week, the United Kingdom’s Information Commissioner’s Office, which regulates data, fined TikTok for a number of breaches of data protection law. Italy is investigating TikTok for “dangerous content.”

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  • Suspect in murder of Cash App founder appears in court | CNN Business

    Suspect in murder of Cash App founder appears in court | CNN Business

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    CNN
     — 

    Nima Momeni, the suspect in the stabbing death of Cash App founder Bob Lee, appeared in a San Francisco court Friday morning for an arraignment, one day after police announced his arrest.

    When Momeni entered the courtroom, members of his family sitting in the front row held up heart signs with their hands. Momeni, who was not cuffed, acknowledged them and smiled back.

    Momeni’s arraignment is set to continue on April 25. He will be held without bail in the meantime.

    Lee was stabbed to death in the Rincon Hill neighborhood of San Francisco early in the morning of April 4th. The moments following the stabbing attack were captured on surveillance video and in a 911 call to authorities, according to a local Bay Area news portal.

    The surveillance footage, reviewed by the online news site The San Francisco Standard, shows Lee walking alone on Main Street, “gripping his side with one hand and his cellphone in the other, leaving a trail of blood behind him.”

    In announcing his arrest Thursday, law enforcement described Momeni as a 38-year-old man from Emeryville, California and said Momeni and Lee knew one another, but didn’t provide further details about their connection.

    California Secretary of State Records indicate that Momeni has been the owner of an IT business, which, according to its website, provides services like technical support.

    Lee’s family issued a statement Thursday thanking the San Francisco Police Department “for bringing his killer to Justice” after Momeni’s arrest.

    “Our next steps will be to work with the District Attorney’s office to ensure that this person is not allowed to hurt anyone else or walk free,” the statement said.

    In the statement, the family described Lee’s upbringing, his career, and the impact of the technology he helped create.

    “Every day around the world, people interact with technology that Bob helped create. Bob will live on through these interactions and his dreams of improving all of our lives,” the statement reads.

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  • The viral new ‘Drake’ and ‘Weeknd’ song is not what it seems | CNN Business

    The viral new ‘Drake’ and ‘Weeknd’ song is not what it seems | CNN Business

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    CNN
     — 

    One of the buzziest songs recently circulating on TikTok and climbing the Spotify charts featured the familiar voices of best-selling artists Drake and the Weeknd. But there’s a twist: Drake and the Weeknd appear to have had nothing to do with it.

    The viral track, “Heart on my Sleeve,” comes from an anonymous TikTok user named Ghostwriter977, who claims to have used artificial intelligence to generate the voices of Drake and the Weeknd for the track.

    “I was a ghostwriter for years and got paid close to nothing just for major labels to profit,” Ghostwriter977 wrote in the video comments. “The future is here.”

    “Heart on my Sleeve” racked up more than 11 million views across several videos in just a few days and was streamed on Spotify hundreds of thousands of times. The original TikTok video has seemingly been taken down, and the song has since been removed from streaming services including YouTube, Apple Music and Spotify. (TikTok, YouTube, Apple and Spotify did not respond to a request for comment.)

    The exact origin of the song remains unclear, and some have suggested it could be a publicity stunt. But the stunning traction for “Heart on my Sleeve” may only add to the anxiety inside the music industry as it goes on offense against the possible threat posed by a new crop of increasingly powerful AI tools on the market.

    Universal Music Group, the music label that represents Drake, The Weeknd and numerous other superstars, sent urgent letters in April to streaming platforms, including Spotify and Apple Music, asking them to block AI platforms from training on the melodies and lyrics of their copywritten songs.

    “The training of generative AI using our artists’ music — which represents both a breach of our agreements and a violation of copyright law as well as the availability of infringing content created with generative AI on digital service providers – begs the question as to which side of history all stakeholders in the music ecosystem want to be on: the side of artists, fans and human creative expression, or on the side of deep fakes, fraud and denying artists their due compensation,” the company said in a statement this week to CNN.

    The record label said platforms have “a fundamental legal and ethical responsibility to prevent the use of their services in ways that harm artists.”

    But attempting to crack down on AI-generated music may pose a unique challenge. The legal landscape for AI work remains unclear, the tools to create it are widely accessible and social media makes it easier than ever to distribute it.

    AI-generated music is not new. Taryn Southern’s debut song “Break Free,” which was composed and produced with AI, hit the Top 100 radio charts back in 2018, and VAVA, an AI music artist (i.e. not a human), currently has a single out in Thailand.

    But a new crop of AI tools have made it easier than ever to quickly generate convincing images, audio, video and written work. Some services such as Boomy specifically leverage generative AI to make music creation more accessible.

    There’s little known about who is behind the Ghostwriter977 account, or which tools the creator used to make the track. The user did not respond to a CNN request for comment.

    In the bio section of the user’s TikTok account, a link directs users to a page on Laylo, a website where fans can sign up to get notifications from artists when new songs are dropped or merchandise and tickets become available. The company told CNN the account likely registered to build up its fan base and brought in “tens of thousands” of signups in the past few days.

    Laylo CEO Alec Ellin denied that the company was behind the viral track as some have speculated, but Ellin told CNN whoever did make it was “clearly a really savvy creator” and called it “a perfect example of the power of using Laylo to own your audience.”

    Michael Inouye, an analyst at ABI Research, said “Heart on my Sleeve” could have been made in several ways depending on the sophistication of the AI and level of musical talent.

    “If music artists were involved, they could create the background music and the lyrics, and then the AI model could be trained with content from Drake and The Weekend to replicate their voices and singing styles,” he said. “AI could also have generated most of the song, lyrics and replicated the artists again based on the training data set and any prompts given to direct the AI model.”

    He added that part of this fascination and virality of the song comes from “just how good AI has gotten at creating content, which includes replicating famous people.”

    Roberto Nickson, who is building an AI platform to help boost productivity and work flow, recently posted a video on Twitter showing how easy it is to record a verse and train an AI model to replace his vocals. He used the artist formerly known as Kanye West as an example.

    “The results will blow your mind,” he said. “You’re going to be listening to songs by your favorite artist that are completely indistinguishable and you’re not going to know if it’s them or not.”

    Although the entertainment industry has seen these issues coming, regulations are lagging behind the rapid pace of AI development.

    Audrey Benoualid, an entertainment lawyer based in Los Angeles, said one could argue “Heart On My Sleeve” does not infringe copyright as it appears to be an “original” composition.

    “Ghostwriter also publicized that Drake and The Weeknd were not involved in the making of the song, which could protect them from a ‘passing off’ claim, where profits are generated as consumers are misled into believing the song is actually a Drake-Weeknd collaboration,” she said in an email to CNN.

    However, Benoualid added, machine learning and generative AI programs may also be found to infringe copyright in existing works, either by making copies of those works to train the AI or by generating outputs that are substantially similar to those existing works. “Major labels would undoubtedly, and have already begun to, argue that their copyrights (and their artists’ intellectual property rights) are being infringed,” she said.

    Michael Nash, an executive VP at Universal Music Group, recently wrote in an op-ed that AI music is “diluting the market, making original creations harder to find, and violating artists’ legal rights to compensation from their work.”

    No regulations exist that dictate on what AI can and cannot train. But last month, in response to individuals looking to seek copyright for AI-generated works, the US Copyright Office released new guidance around how to register literary, musical, and artistic works made with AI.

    The copyright will be determined on a case-by-case basis, the guidance continued, based on how the AI tool operates and how it was used to create the final piece or work. The US Copyright Office announced it will also be seeking public input on how the law should apply to copywritten works the AI trains on, and how the office should treat those works.

    “AI and copyright law and the rights of musicians and labels have crashed into one another (once again), and it will take time for the dust to settle,” Benoualid said. “The landscape is anything but clear at the moment.”

    Inouye said if AI generated content becomes associated with famous individuals in a negative way that could be grounds for a lawsuit to not only take content down but to cease and desist their operations and potentially seek damage.

    “On the flip side, if the content were to be popular and the creator were to make revenue off of the artists’ image or likeness then again the artists could similarly request the content to be taken down and potentially sue for any monetary gains,” he said.

    But for now, concerned parties may be forced to play whack-a-mole. While services like Spotify pulled “Heart on my Sleeve,” versions of it appeared to continue circulating as of Tuesday on other online platforms.

    Even a song made with artificial intelligence may find real staying power online.

    – CNN’s Vanessa Yurkevich contributed to this report.

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  • Republican governors call for withdrawal of proposed Title IX rule changes around transgender student athletes | CNN Politics

    Republican governors call for withdrawal of proposed Title IX rule changes around transgender student athletes | CNN Politics

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    CNN
     — 

    A group of 25 Republican governors called on the Biden administration Friday to withdraw or delay recently proposed rule changes to Title IX that could prevent states from enforcing anti-transgender sports bans.

    As several bills that aim to ban transgender students from participating on sports teams consistent with their gender identity make their way through GOP-led state legislatures across the country, the governors argued in a letter sent to Education Secretary Miguel Cardona that such bans ensure fairness.

    Led by Mississippi Gov. Tate Reeves, the group – including the governors of Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia and Wyoming – slammed the administration’s proposal as “a blatant overreach.”

    In April, the Biden administration proposed a new federal rule change for Title IX that would prohibit policies that “categorically” ban transgender students from participating on sports teams consistent with their gender. However, according to a public notice from the department, the proposal would allow schools to enforce some restrictions in “competitive” environments.

    “Leaving aside the Department’s utter lack of authority to promulgate such a regulation, neither states nor schools should be subjected to such a fluid and uncertain standard,” the governors said in the letter. “Nor, most importantly, should the historic advancements and achievements of our sisters, mothers, and daughters be erased.”

    The governors went on to argue that the proposed changes create confusion for states and schools and claimed that the government was threatening to withhold federal funds to coerce schools to comply with a “completely subjective standard that is based on a highly politicized gender ideology.”

    CNN has reached out to the Department of Education for comment.

    Seventeen of the states signed onto the letter have enacted such bans with a few facing legal challenges, according to the Movement Advancement Project, a nonprofit think tank that advocates for issues including LGBTQ rights. This week, Missouri lawmakers passed a bill prohibiting students from competing in gendered athletic competitions that do not match their biological sex as listed on a birth certificate or government record, and the governor is expected to sign the measure.

    Proponents of such limitations in sports have argued that transgender women have a physical advantage over cisgender women and allowing them to compete would be unfair. However, a 2017 report in the journal Sports Medicine found “no direct or consistent research” on any such advantage.

    When the proposed rule changes were announced, advocates celebrated the new protections but called on the administration to eliminate the exemptions.

    “Every student deserves to be treated with dignity and respect. This includes transgender girls of all ages and in all sports, without exception,” said Kelley Robinson, president of the Human Rights Campaign, the largest LGBTQ advocacy group.

    “The new rule should be clarified to ensure that all transgender students should be presumed eligible to participate in sports consistent with their gender identity,” Robinson added in a statement at the time. “This moment we’re in is truly a crisis for transgender young people – and we’re calling on elected leaders at every level of government to fight harder for our kids.”

    Democratic governors of several states whose legislatures have pushed anti-trans sports bans were not listed among the letter’s signers, including from North Carolina, Kansas and Kentucky. According to the American Civil Liberties Union, more than 470 anti-LGBTQ bills have been introduced nationwide this legislative session.

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