ReportWire

Tag: Meta Platforms Inc

  • OpenAI shakeup has rocked Silicon Valley, leaving some techies concerned about future of AI

    OpenAI shakeup has rocked Silicon Valley, leaving some techies concerned about future of AI

    Sam Altman, CEO of OpenAI, attends the Asia-Pacific Economic Cooperation (APEC) CEO Summit in San Francisco, California, U.S. November 16, 2023.

    Carlos Barria | Reuters

    A wide swath of Silicon Valley has hitched its hopes and fortunes over the past few years to the kind of generative artificial intelligence technologies that OpenAI helped popularize.

    Many industry experts point to the debut of ChatGPT late last year as an iPhone-like moment, ushering a potential shift in the way people interact with computers via written prompts that can produce creative, seemingly human-like text.

    Just as Apple had the late Steve Jobs acting as the company’s esteemed figurehead, articulating the appeal of the iPhone and personal computers to the masses, so too did OpenAI have its own charismatic leader in Sam Altman.

    With Altman out as CEO — at least for now — after his sudden firing on Friday, the Apple comparisons are flowing freely. Jobs was fired as CEO of Apple in 1985, a move that lives in Silicon Valley lore, since it was after his return in 1997 that Apple found the path that eventually made it the most valuable company in the U.S.

    Altman, who previously ran startup accelerator Y Combinator, has spent the past year cozying up to world leaders and making routine appearances at tech events, turning the 38-year-old executive into an industry celebrity, in the mold of Jobs, Meta CEO Mark Zuckerberg, Amazon founder Jeff Bezos and Tesla CEO Elon Musk.

    Along with Altman, OpenAI’s board removed Greg Brockman from his role as chairman. Later Friday, Brockman said he was quitting the company.

    “What happened at OpenAI today is a Board coup that we have not seen the likes of since 1985 when the then-Apple board pushed out Steve Jobs,” longtime startup investor Ron Conway said Friday evening in an X post. “It is shocking; it is irresponsible; and it does not do right by Sam & Greg or all the builders in OpenAI.”

    Efforts are already underway by OpenAI investors to get Altman back, according to people familiar with the matter. Microsoft, Tiger Global, Sequoia Capital and Thrive Capital are among a number of OpenAI’s top backers that are trying to reinstate Altman, said the people, who asked not to be named because discussions are confidential. The Verge reported on Saturday that Altman is “ambivalent” about the possibility of returning.

    Airbnb CEO Brian Chesky referred to Altman in an X post as “one of the best founders of his generation” who “has made an immense contribution to our industry.”

    Silicon Valley reacts to OpenAI

    Matt Schlicht, the CEO of the startup Octane AI, told CNBC that Altman and Brockman, who was formerly the chief technology office of Stripe, “made a technology available that we’d only ever dreamed about” and called it “the most exciting and powerful development of our lifetime.”

    Octane is one of many new startups using the so-called large language models that OpenAI packages under its GPT family of software tools. Schlicht said the technology has so far “enabled us to put human-level intelligence inside of our code, and because of that we have helped entrepreneurs generate over half a billion in revenue.”

    “I’ve known both Sam and Greg for over a decade, they are incredible and inspiring leaders,” Schlicht said. “After hearing about their untimely departure I was immediately filled with sadness. Innovation in the world was suddenly halted.”

    Ryan Jannsen, CEO of Zenlytic, shared Schlicht’s sentiment.

    “The AI community is reeling,” Jannsen said, adding that technologists are confused about the circumstances related to Altman’s firing and what it means for OpenAI going forward.

    “Sam and OpenAI were the catalyst that showed the world what AI tech is capable of,” Jannsen said. “A huge amount of the excitement and activity in AI today is very directly thanks to their pioneering work.”

    Whether or not Altman returns, the turmoil at OpenAI could give rivals an advantage in what’s quickly become a highly competitive market for advanced LLMs. From heavily funded startups like Anthropic and Cohere to cloud computing giants Google and Amazon, companies will likely be “looking for the next best alternative,” given the perceived instability at OpenAI, said industry analyst Patrick Moorhead.

    “They’re not the only game in town,” Moorhead said.

    Josh Wolfe, a partner at venture firm Lux Capital, said OpenAI is taking a huge reputational hit at a time when companies are deciding what models they’re going to use as building blocks.

    “There was a perception of steady, predictable, reliable reputable progress and engagement and communication with industry,” Wolfe said. “The surprise capriciousness of the move signals total unpredictability, which is terrible for companies making plans to work with or trust OpenAI.”

    OpenAI’s unusual structure

    A big part of the challenge in understanding OpenAI is its unusual company structure. The board of OpenAI oversees the nonprofit, of which the corporate entity is a part, and “acts as the overall governing body for all OpenAI activities,” according to the blog post announcing Altman’s ouster.

    The post said that a “deliberative review process by the board” concluded that Altman “was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities.” 

    Silicon Valley’s high-profile startup CEO firings typically involve wrongdoing, rather than just philosophical differences about where the company is headed.

    Several investors told CNBC that OpenAI’s hybrid model presented a red flag from the beginning, in part because incentives can too easily be misaligned. Now, they said, the company risks severe brain drain if top talent chooses to follow Altman to his next project or a competitor in the industry.

    Altman, meanwhile, has the advantage of having made such a name for himself that he’d have no problem raising money for a new project from investors who view him as the next great tech luminary.

    “Sam Altman is a hero of mine,” former Google CEO and investor Eric Schmidt said in an X post. “He built a company from nothing to $90 Billion in value, and changed our collective world forever. I can’t wait to see what he does next. I, and billions of people, will benefit from his future work- it’s going to be simply incredible.”

    Eric Schmidt, the former CEO of Google, arrives for the Inaugural AI Insight Forum in Russell Building on Capitol Hill, on Wednesday, Sept. 13, 2023.

    Tom Williams | Cq-roll Call, Inc. | Getty Images

    Airbnb’s Chesky wrote that he’d spoken with Altman and Brockman and that they have his “full support.”

    “I’m saddened by what’s transpired,” Chesky wrote. “They, and the rest of the OpenAI team, deserve better. He added in a separate post that Altman is “one of the best founders of his generation.”

    As for Microsoft, whose CEO Satya Nadella was reportedly caught off guard by the shakeup, several venture capitalists were surprised that the company could be so unaware of what was brewing given the billions they’ve invested in the company.

    “I imagine Microsoft might ask for a board seat next time they decide to plow $15 billion into a startup,” said Zachary Lipton, a Carnegie Mellon University professor of machine learning and operations research.

    Industry analyst Moorhead said Microsoft could “figure out how to buy this company and how to put Sam in charge.”

    “That’s the first play, it’s potentially finding ways to remove the current board of directors, reinstall new board of directors and then bring Sam and company back in — making sure the band stays together,” Moorhead said.

    Regardless of the current chaos, Carnegie Mellon’s Lipton said he expects investors to remain bullish on AI.

    “This story has elements of corporate and ideological discord, but not even a whiff of diminished promise,” Lipton said.

    — CNBC’s Lora Kolodny contributed to this report

    WATCH: OpenAI says Sam Altman exiting as CEO because ‘board no longer has confidence.’

    OpenAI says Sam Altman exits as CEO after board loses confidence

    Source link

  • Facebook-parent Meta breaks up its Responsible AI team

    Facebook-parent Meta breaks up its Responsible AI team

    Mark Zuckerberg, CEO of Meta, attends a U.S. Senate bipartisan Artificial Intelligence Insight Forum at the U.S. Capitol in Washington, D.C., Sept. 13, 2023.

    Stefani Reynolds | AFP | Getty Images

    Meta has disbanded its Responsible AI division, the team dedicated to regulating the safety of its artificial intelligence ventures as they get developed and deployed, according to a Meta spokesperson.

    Most members of the RAI team have been reassigned to the company’s Generative AI product division, while some others will now work on the AI Infrastructure team, the spokesperson said. The news was first reported by The Information.

    The Generative AI team, born in February, focuses on developing products that generate language and images to mimic the equivalent human-made version. It came as companies across the tech industry poured money into machine learning development so as not to get left behind in the AI race. Meta is among the Big Tech companies that have been playing catch-up since the AI boom took hold.

    The RAI restructuring comes as the Facebook parent nears the end of its “year of efficiency,” as CEO Mark Zuckerberg called it during a February earnings call. So far, that has played out as a flurry of layoffs, team-mergers and redistributions at the company.

    Ensuring the safety of AI has become a stated priority of top players in the space, especially as regulators and other officials pay closer attention to the nascent technology’s potential harms. In July, Anthropic, Google, Microsoft and OpenAI formed an industry group focused specifically on setting safety standards as AI advances.

    Though RAI employees have now been dispersed throughout the organization, the spokesperson noted that they will continue to support “responsible AI development and use.”

    “We continue to prioritize and invest in safe and responsible AI development,” the spokesperson said.

    Source link

  • Elon Musk’s X apocalyptic moment

    Elon Musk’s X apocalyptic moment

    Is this the beginning of the end for X, the social-media site previously known as Twitter?

    In the last two days, major advertisers, ranging from IBM Corp. IBM, Apple Inc. AAPL, Lions Gate Entertainment Corp. LGF.A, Walt Disney Co. DIS, even the European Union, have pulled their ads from X, after Elon Musk appeared to endorse antisemitic conspiracy theories and because these big spenders weren’t thrilled with the algorithm’s product placement nestled alongside pro-Nazi posts.

    Earlier…

    Source link

  • CNBC Daily Open: Rate cuts might not be in the cards despite cooling inflation

    CNBC Daily Open: Rate cuts might not be in the cards despite cooling inflation

    The Marriner S. Eccles Federal Reserve building during a renovation in Washington, DC, US, on Tuesday, Oct. 24, 2023.

    Valerie Plesch | Bloomberg | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Downbeat Asian markets
    U.S. stocks ticked up Wednesday as another report showed inflation’s cooling. Despite that, Treasury yields rose. Asia-Pacific markets, however, fell Thursday. Hong Kong’s Hang Seng Index dropped 1.26%, dragged down by Xpeng’s 3.83% decline after the Chinese electric vehicle company reported disappointing earnings results.

    ‘Planet Earth is big enough’
    U.S. President Joe Biden met Chinese President Xi Jinping yesterday on the sidelines of the Asia-Pacific Economic Cooperation conference. Both leaders agreed to resume high-level military communications. As part of the agreement, senior U.S. military commanders will engage with their Chinese counterparts. As Xi said in his opening remarks, “Planet Earth is big enough for the two countries to succeed.”

    Emptying Citi
    Citigroup will start laying off workers as part of CEO Jane Fraser’s corporate overall, CNBC has learned. Citi employees who will be let go will be informed starting Wednesday U.S. time, and the process will continue until early next week, according to people with knowledge of the situation. It seems no one will be spared: chiefs of staff, managing directors and lower-level employees will all be affected.

    Microsoft’s own AI chip
    At its Ignite conference in Seattle, Microsoft announced two custom chips. The first, its Maia 100 artificial intelligence chip, could compete with Nvidia’s AI chips. The second, a Cobalt 100 Arm chip, is designed to tackle general computing tasks and could supplant Intel processors. But Microsoft is planning to use its chips internally, and doesn’t intend to let other companies buy those chips.

    [PRO] Magnificent One
    Shares of the Magnificent Seven stocks — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — have surged this year, propelling the S&P 500 higher. They’ve also drawn criticism that their prices are too high, based on their price-to-earnings ratio. But there’s an exception: Morgan Stanley thinks one of them is “pretty inexpensive relative to free cash flow growth or earnings growth.”

    The bottom line

    After a very encouraging consumer price index reading on Tuesday, we have more evidence that inflation’s truly cooling.

    Wholesale prices in October, as measured by the producer price index, fell 0.5% for the month against the expected 0.1% increase. That’s the biggest decline in more than three years. When producer prices fall, it takes a while for those lower prices to seep into the general consumer economy, so it’s plausible we’ll see CPI continue dropping in the months ahead.

    Major U.S. indexes rose — slightly — on that encouraging news. The S&P 500 increased 0.16% and the Nasdaq Composite edged up 0.07%. The Dow Jones Industrial Average gained 0.47% for its fourth consecutive winning session.

    The stock market rally over the past two days, it seems, was fueled by investors’ expectations that lower inflation readings will prompt the Federal Reserve to cut rates sooner rather than later. Investors think there’s a 29.6% chance the Fed will slash rates by a full percentage point by the end of next year, according to the CME FedWatch tool.

    But that flurry of cuts is two times as aggressive as the timeline the Fed itself penciled in two months ago, noted CNBC’s Jeff Cox. And that, to put it mildly, “may be at least a tad optimistic,” Cox wrote.

    Investor optimism, ironically, may be counterproductive as well. Expectations of a rate cut forced down Treasury yields Tuesday (though they rose again yesterday). Treasury yields tend to serve as the benchmark for loans and other assets, so when they drop, financial conditions loosen — exactly what the Fed doesn’t want to see.

    “Financial conditions have eased considerably as markets project the end of Fed rate hikes, perhaps not the perfect underpinning for a Fed that professes to keeping rates higher for longer,” said Quincy Krosby, chief global strategist at LPL Financial.

    Indeed, “this is at least the 7th time in this cycle that markets [anticipate] … a potential dovish pivot,” wrote Deutsche Bank macro strategist Henry Allen. (Spoiler alert: Investors have, without exception, been disappointed the previous times as the Fed refused to budge.)

    In short: While it’s undeniable inflation’s dropping, there’s no guarantee rates will fall in tandem. It might be better to be pleasantly surprised than to be disappointed.

    — CNBC’s Jeff Cox contributed to this report.

    [ad_2]
    Source link

  • Microsoft is fine avoiding China as U.S. considers national security implications, CEO Satya Nadella says

    Microsoft is fine avoiding China as U.S. considers national security implications, CEO Satya Nadella says

    Microsoft CEO Satya Nadella speaking with CNBC on Nov. 15th, 2023.

    CNBC

    Microsoft is not focused on China as a domestic market, though the company has notable Chinese customers with operations outside the world’s second most-populous country, CEO Satya Nadella said on Wednesday.

    “We are mostly focused on the global market ex-China,” Nadella told CNBC’s Jon Fortt during Microsoft’s Ignite conference in Seattle. “A lot of the Chinese multinationals operating outside of China are our bigger AI customers, perhaps.”

    Microsoft provides artificial intelligence services to electric vehicle maker Li Auto and consumer electronics company Xiaomi, among others.

    Nadella’s remarks come as business leaders gather in San Francisco alongside U.S. President Joe Biden and China’s President Xi Jinping. The world’s two biggest economies have a fraught business relationship, particularly when it comes to technologies like networking equipment, semiconductors and internet services. In October the U.S. Commerce Department said it would impose additional export restrictions on AI chips for China.

    Microsoft has a more visible presence in China than some of its peers. Meta’s Facebook and Instagram apps don’t officially work in China, nor does Google’s search engine. Amazon closed its online marketplace in China in 2019.

    According to Microsoft’s web page about its presence in China, the company has operated there since 1992, including through its largest research and development center outside the U.S. The Bing search engine has been accessible in China since 2009.

    For a few months this year, following the launch of an AI chatbot in Bing, it became the top desktop search engine in China. However, Beijing-based Baidu has since reclaimed leadership, according to StatCounter data. Earlier this week, Microsoft’s advertising division announced a partnership with Baidu.

    Still, Nadella acknowledged on Wednesday that the U.S. government has important restrictions to follow when it comes to doing business in China.

    “It’s clear that the United States has a particular set of policy decisions that they’re making on what it means to both have trade and competition and national security,” Nadella said. “Obviously, we are subject to what the USG decides” and will be compliant, he added.

    Just over half of Microsoft’s sales in the third quarter came from clients in the U.S. The U.S government uses Microsoft Azure cloud services and Microsoft 365 productivity apps.

    While Microsoft doesn’t rely on China for much revenue, the company has depended on the country for manufacturing, in part for its Surface PCs.

    “At least for us, today, the majority of our business is in the United States and in Europe and in the rest of Asia, and so we don’t see this as a major, major issue for us, quite frankly, other than any disruption to supply chain,” Nadella said.

    Microsoft has recently encountered some challenges in China.

    In August, LinkedIn stopped operating its InCareer app for professional users in mainland China, citing “fierce competition and a challenging macroeconomic climate.” The move came two years after Microsoft announced plans to shut down a localized version of its main app for users in China.

    Last year, China reportedly told its government agencies and government-backed companies to turn in PCs from foreign countries and replace them with machines made domestically and running local operating systems. That came after Microsoft developed a special version of its Windows 10 operating system for the Chinese government.

    WATCH: Microsoft will have a great position in AI in the long term, says Deepwater’s Gene Munster

    Source link

  • China is using the world’s largest known online disinformation operation to harass Americans, a CNN review finds | CNN

    China is using the world’s largest known online disinformation operation to harass Americans, a CNN review finds | CNN



    CNN
     — 

    The Chinese government has built up the world’s largest known online disinformation operation and is using it to harass US residents, politicians, and businesses—at times threatening its targets with violence, a CNN review of court documents and public disclosures by social media companies has found.

    The onslaught of attacks – often of a vile and deeply personal nature – is part of a well-organized, increasingly brazen Chinese government intimidation campaign targeting people in the United States, documents show.

    The US State Department says the tactics are part of a broader multi-billion-dollar effort to shape the world’s information environment and silence critics of Beijing that has expanded under President Xi Jinping. On Wednesday, President Biden is due to meet Xi at a summit in San Francisco.

    Victims face a barrage of tens of thousands of social media posts that call them traitors, dogs, and racist and homophobic slurs. They say it’s all part of an effort to drive them into a state of constant fear and paranoia.

    Often, these victims don’t know where to turn. Some have spoken to law enforcement, including the FBI – but little has been done. While tech and social media companies have shut down thousands of accounts targeting these victims, they’re outpaced by a slew of new accounts emerging virtually every day.

    Known as “Spamouflage” or “Dragonbridge,” the network’s hundreds of thousands of accounts spread across every major social media platform have not only harassed Americans who have criticized the Chinese Communist Party, but have also sought to discredit US politicians, disparage American companies at odds with China’s interests and hijack online conversations around the globe that could portray the CCP in a negative light.

    Private researchers have tracked the network since its discovery more than four years ago, but only in recent months have federal prosecutors and Facebook’s parent company Meta publicly concluded that the operation has ties to Chinese police.

    Meta announced in August it had taken down a cluster of nearly 8,000 accounts attributed to this group in the second quarter of 2023 alone. Google, which owns YouTube, told CNN it had shut down more than 100,000 associated accounts in recent years, while X, formerly known as Twitter, has blocked hundreds of thousands of China “state-backed” or “state-linked” accounts, according to company blogs.

    Still, given the relatively low cost of such operations, experts who monitor disinformation warn the Chinese government will continue to use these tactics to try to bend online discussions closer to the CCP’s preferred narrative, which frequently entails trying to undermine the US and democratic values.

    “We might think that this is confined to certain chatrooms, or this platform or that platform, but it’s expanding across the board,” Rep. Mike Gallagher, chairman of the House Select Committee on the CCP, told CNN. “And it’s only a matter of time before it happens to that average American citizen who doesn’t think it’s their problem right now.”

    When trolls disrupted an anti-communism Zoom event organized by New York-based activist Chen Pokong in January 2021, he had little doubt who was responsible. The trolls mocked participants and threatened that one victim would “die miserably.” Their conduct reminded Chen of repression by the government of China, where he spent nearly five years in prison for pro-democracy work.

    But his suspicions about who was behind the interruption were solidified when the US Department of Justice charged more than 30 Chinese officials earlier this year with running a sprawling disinformation operation that had targeted dissidents in the US, including those in the Zoom meeting Chen says he hosted in 2021.

    It was just one of multiple indictments the Justice Department unsealed in April exposing alleged Chinese government plots to target its perceived critics and enemies, while impugning the sovereignty of the United States. Two alleged Chinese operatives were charged with running an “undeclared police station” in New York City. Last year, another indictment outlined how Chinese agents allegedly tried to derail the congressional campaign of a Chinese dissident.

    “They want to deprive my freedom of speech, so I feel like it’s not only an attack on me,” said Chen, who was ejected from his own meeting during the disruption. “They also attack America.”

    The DOJ complaint named 34 individual officers with China’s Ministry of Public Security and published photographs of them at computers, allegedly working on the disinformation campaign known as the “912 Special Project Working Group.” The operation, primarily based in Beijing, appears to involve “hundreds” of MPS officers across the country, according to an FBI agent’s affidavit.

    The complaint does not refer to the cluster of fake accounts as “Spamouflage,” but private researchers and a spokesperson for Meta told CNN that the social media activity described by the DOJ is part of that network. As part of a mission “to manipulate public perceptions of [China], the Group uses its misattributed social media accounts to threaten, harass and intimidate specific victims,” the complaint states.

    When asked about Spamouflage’s reported links to Chinese law enforcement, a spokesperson for China’s embassy in Washington, Liu Pengyu, denied the allegations.

    “China always respects the sovereignty of other countries. The US accusation has no factual evidence or legal basis. It is entirely politically motivated. China firmly opposes it,” Liu said in a statement to CNN. He claimed that the US “invented the weaponizing of the global information space.”

    A report released by Meta in August illustrates how the posts from the network often align with the workday hours in China. The report described “bursts of activity in the mid-morning and early afternoon, Beijing time, with breaks for lunch and supper, and then a final burst of activity in the evening.”

    And while Meta detected posts from various regions in China, the company and other researchers have found centralized coordination that relentlessly pushed identical messages across multiple social media platforms, sometimes repeatedly insulting the same individuals who have questioned the Chinese government.

    One of those individuals is Jiayang Fan, a journalist for The New Yorker who told CNN she began facing harassment by the network when she covered pro-democracy protests in Hong Kong in 2019.

    Jiayang Fan, a US-based journalist, says the online harrassment against her began when she covered the 2019 pro-democracy protests in Hong Kong.

    Attacks directed at Fan – which ranged from cartoons of her painting her face white as though rejecting her identity to accusations that she killed her mother for profit – carry telltale signs of the Spamouflage network, said Darren Linvill of the Media Forensics Hub at Clemson University. Linvill’s group found more than 12,000 tweets attacking Fan using the same hashtag, #TraitorJiayangFan.

    Although she hasn’t lived in China since she was a child, Fan believes such messages have been levelled against her to spark fear and silence others.

    “This is part of a very old Chinese Communist Party playbook to intimidate offenders and aspiring offenders,” said Fan, who questioned what her distant relatives in China may think when they see such content. “It is uncomfortable for me to know that they are seeing these portrayals of me and have no idea what to believe.”

    Experts who track online influence campaigns say there are signs of a shift in China’s strategy in recent years. In the past, the Spamouflage network mostly focused on issues domestically relevant to China. However, more recently, accounts tied to the group have been stoking controversy around global issues, including developments in the United States.

    Spamouflage accounts – some of which posed as Texas residents – called for protests of plans to build a rare-earths processing facility in Texas and spread negative messages about a separate US manufacturing company, according to a report by cybersecurity firm Mandiant last year. The report also described how the campaign promoted negative content about the Biden administration’s efforts to hasten mineral production that would curb US reliance on China.

    Other posts by the network have referenced how “racism is an indelible shame on American democracy” and how the US committed “cultural genocide against the Indians,” according to a Meta report in August. Another post claimed that former House Speaker Nancy Pelosi is “riddled with scandals.”

    Chinese government-linked accounts have also posted messages that included a call to “kill” President Biden, a cartoon featuring the so-called QAnon Shaman who rioted at the US Capitol as a symbol of “western style democracy,” and a post that suggested US defense contractors profit off the deaths of innocent people, according to a Department of Homeland Security report in April obtained through a records request.

    The DOJ complaint filed against Chinese officials alleged that last year they sought to take advantage of the second anniversary of George Floyd’s death and post on social media about his murder to “reveal the law enforcement brutality” in the US. They also received a task to “work on 2022 US midterm elections and criticize American democracy.”

    Spamouflage is “evolving in tactics. It’s evolving in themes,” said Ben Nimmo, the global lead for threat intelligence at Meta. “Our job is to keep on raising our defenses and keep on telling people about it, especially as we get closer to the election year.”

    Yet as social media companies race to stop disinformation and the US government files complaints against those allegedly responsible, accountability can be elusive.

    “This is the rub with a lot of cybercrimes, that it becomes very, very difficult to actually put the perpetrators in jail,” said Lindsay Gorman, the head of technology and geopolitics at the German Marshall Fund’s Alliance for Securing Democracy.

    But, Gorman added, that doesn’t mean there are no consequences for China.

    “Even if individuals have a degree of impunity because they are never planning on coming to the United States anyway, that doesn’t mean that the party operation has impunity here – certainly not in terms of public opinion, certainly not in terms of US-China relations,” she said.

    Meta, Google, and other companies that have published reports outing Spamouflage stress that most of the social media accounts within the network receive little or no engagement, meaning they rarely go viral.

    But Linvill of Clemson University argues that the network uses a unique strategy of “flooding” conversations with so many comments that posts from genuine users receive less attention. This includes posting on platforms typically not associated with disinformation, such as Pinterest.

    “They are operating thousands of accounts at a time on a given platform, often to drown out conversations, just with sheer volume of messaging,” Linvill said. “When we think of disinformation, we often think of pushing ideas on users and making ideas more salient, whereas what China is doing is the opposite. They are trying to remove conversations from social media.”

    When Beijing hosted the 2022 Winter Olympics, for example, human rights groups began promoting the hashtag #GenocideGames to bring attention to accusations that China has detained more than a million Uyghurs and other Muslim minorities in internment camps.

    But then something surprising happened. Accounts that Linvill and his colleagues believed were part of Spamouflage started tweeting the hashtag too.

    It might be counterintuitive for a pro-Chinese government group to start spreading a hashtag that brought attention to the Chinese government’s human rights’ abuses, Linvill explained. But by using the hashtag repeatedly in tweets that had nothing to do with the issue itself, Spamouflage was able to reduce views on the legitimate messages.

    Jiajun Qiu, whose academic work focused on elections and who fled China in 2016, showed CNN what happens when he types his name into X, formerly known as Twitter. There are sometimes dozens of accounts pretending to be him by using his name and photo.

    Jiajun Qiu, who fled China in 2016, has faced an onslaught of Spamouflage trolls.

    They are designed by the operators of Spamouflage, Linvill explained, to confuse people and prevent them from finding Qiu’s real account by muddying the waters.

    Now living in Virginia, Qiu runs a pro-democracy YouTube channel and has faced an onslaught of homophobic, racist and bizarre insults from social media accounts that Linvill’s team and others have tied to Spamouflage.

    Some accounts have posted cartoons that convey Qiu as an insect working on behalf of the US government. Another image depicts him being stomped by a cartoon Jesus. Yet another paints him as a dog on the leash of an American rat.

    “I tell people the truth, so they want to do anything possible to insult me,” Qiu said.

    Linvill and his team have tracked hundreds of these cartoons across the internet, and said they are a “tell” of Spamouflage. Cartoons, Linvill explained, can be more effective than text because they are “eye-catching” and “you have to stop and look at it.” In addition, these original cartoons can easily be translated into hundreds of languages at a very low cost.

    Beyond the online smears, Qiu says he has also faced threats via other online messages and escalatory calls from unidentified sources who he believes have ties to the Chinese government. One anonymous message told him he would be arrested and brought to justice for breaking Chinese law. An email referenced the church he attends in Manassas, Virginia and said, “for his own safety and that of the worshippers, he would do well to find another place to stay.”

    Qiu told CNN that the FBI has interviewed him four times regarding these threats, and that he has been instructed to contact local police if he is ever followed.

    “Every day I live in a sense of fear,” Qiu said.

    Source link

  • Whoever ends up playing Elon Musk could be bound for Oscar glory

    Whoever ends up playing Elon Musk could be bound for Oscar glory

    SpaceX, Twitter and electric car maker Tesla CEO Elon Musk, attends a US Senate bipartisan Artificial Intelligence (AI) Insight Forum at the US Capitol in Washington, DC, on September 13, 2023.

    Stefani Reynolds | Afp | Getty Images

    Maybe the hottest question in Hollywood right now is: Who will play Elon Musk?

    News broke Friday that hot-ticket indie studio A24 snagged the rights to film Walter Isaacson’s biography of the controversial billionaire Tesla and SpaceX chief. NBC News reported that the agreement came after a highly competitive bidding war involving multiple studios and filmmakers.

    As if that weren’t head-turning enough – A24, which dominated last year’s Oscars, is popular among film buffs for edgy fare like “Midsommar” and “Talk to Me” – Darren Aronofsky is attached to direct the biopic.

    The chance to play such a divisive figure as Musk would be catnip to most actors anyway. But the chance to work with Aronofsky is likely an added bonus. His ambitious movies often demand actors go to award-show-worthy extremes, giving him a great track record of steering performers to Oscar nominations and wins.

    Earlier this year, Brendan Fraser won best actor for his role as a reclusive and depressed professor in Aronofsky’s “The Whale,” while Hong Chau received a best supporting actress nomination. In 2011, Natalie Portman won best actress for the director’s psychological ballet drama “Black Swan.” Mickey Rourke and Marisa Tomei were both nominated in 2009 for “The Wrestler.” Before that, Ellen Burstyn was nominated for best actress in 2001 for Aronofsky’s disturbing drug-addiction drama “Requiem for a Dream.”

    Darren Aronofsky attends the UK Premiere of ‘The Whale’ at the Royal Festival Hall during the 66th BFI London Film Festival in London, United Kingdom on October 11, 2022.

    Wiktor Szymanowicz | Future Publishing | Getty Images

    But the Oscar mojo wouldn’t belong entirely to Aronofsky.

    Isaacson’s Steve Jobs biography supplied the source material for the 2015 Danny Boyle film of the same name, which netted Michael Fassbender a best actor nomination for playing the late Apple mastermind. Another polarizing tech figure, Meta CEO Mark Zuckerberg, was the subject of David Fincher’s 2010 drama, “The Social Network,” which led to star Jesse Eisenberg snagging a best actor nomination.

    It remains to be seen who will end up getting the Musk role, which will draw more scrutiny than most casting decisions in Hollywood, given the billionaire’s outspoken and provocative presence on social media. Aronofsky’s protagonists also tend to be irreparably flawed and self-destructive.

    At the moment, though, Musk appears happy with the way it’s going. “Glad Darren is doing it. He is one of the best,” he posted on his platform X, formerly known as Twitter.

    CNBC has asked Musk about whom he’d like to see play him in the movie.

    Source link

  • Snap conducts a small round of layoffs to its product team

    Snap conducts a small round of layoffs to its product team

    Co-founder and CEO of Snap Inc. Evan Spiegel holds up a Pixy drone while speaking during the Viva Technology conference dedicated to innovation and startups, at the Porte de Versailles exhibition center in Paris, France June 17, 2022.

    Benoit Tessier | Reuters

    Snap has conducted a round of layoffs as part of a reorganization intended to streamline the social-messaging company.

    Nearly 20 employees who held product management titles were laid off, Snap said in a statement on Wednesday. The layoffs were not centered on any specific product and were part of the company’s plans to increase decision-making speed and reduce overhead, the company said.

    Technology news publication The Information reported on the layoffs earlier on Wednesday.  

    The layoffs come after Snap recently reported third-quarter earnings in which its overall sales grew 5% year-over-year to $1.19 billion, beating analyst expectations.

    But Snap, like its larger rival Meta, also warned investors that it has observed some recent pauses in advertising due to the current crisis in the Middle East. As a result, Snap said it would not provide official guidance “due to the unpredictable nature of war.”

    Meta widened its guidance range due to the Israel-Hamas war, with the company’s chief financial officer Susan Li telling analysts that it “observed softer ads in the beginning of the fourth quarter, correlating with the start of the conflict.”

    Last summer, Snap said it would lay off 20% of its workforce that was, at the time, comprised of over 6,000 employees.  

    Snap said it currently has roughly 5,000 employees.

    Watch: Sen. Blumenthal and Sen. Blackburn discuss the bipartisan child social media safety bill

    Source link

  • Meta CEO Mark Zuckerberg tore his ACL while training for a competitive MMA fight

    Meta CEO Mark Zuckerberg tore his ACL while training for a competitive MMA fight

    Mark Zuckerberg posing with UFC president Dana White during a UFC Fight Night event.

    Jeff Bottari | Ufc | Getty Images

    Meta CEO Mark Zuckerberg just had surgery as a result of an injury to his ACL that occurred during mixed-martial arts training.

    The Facebook co-founder revealed his injury on Friday via an Instagram post in which he said that he “tore my ACL sparring and just got out of surgery to replace it.”

    “I was training for a competitive MMA fight early next year, but now that’s delayed a bit,” Zuckerberg said. “Still looking forward to doing it after I recover.”

    “Thanks to everyone for the love and support,” he added.

    Zuckerberg included several photos of himself at an undisclosed hospital that shows the executive prior to his surgery and then after the procedure with his wife Priscilla Chan comforting him during his recovery.

    The Meta CEO has taken an interest in MMA and competitive fighting in recent years and has been training in a variety of martial arts, including Brazilian Jiu-Jitsu.

    In May, he revealed in a Facebook post that competed in his first jiu-jitsu tournament in which he won a gold and silver medal.

    Zuckerberg’s recent injury to his ACL comes after a brief verbal exchange between the Meta executive and Tesla chief Elon Musk who were floating a possible cage match.

    The fight never took place, however, with Zuckerberg saying during the summer via a post on Threads that “we can all agree Elon isn’t serious and it’s time to move on.”

    Zuckerberg said that while Ultimate Fighting Championship President Dana White offered to make the match between the two executives “a legit competition for charity,” Musk never confirmed a date.

    “If Elon ever gets serious about a real date and official event, he knows how to reach me,” Zuckerberg said at the time. “Otherwise, time to move on. I’m going to focus on competing with people who take the sport seriously.”

    Watch: Jim Cramer says this beer stock can go higher after the company’s promising Investor Day

    Source link

  • China says it will back global consensus on AI amid tech clash with U.S.

    China says it will back global consensus on AI amid tech clash with U.S.

    BLETCHLEY, ENGLAND – NOVEMBER 1: US Secretary of Commerce Gina Raimondo and Michelle Donelan, Secretary of State for Science, Innovation and Technology listen as Vice Minister of Science and Technology of China Wu Zhaohui speaks on Day 1 of the AI Safety Summit at Bletchley Park on November 1, 2023 in Bletchley, England. The UK Government are hosting the AI Safety Summit bringing together international governments, leading AI companies, civil society groups and experts in research to consider the risks of AI, especially at the frontier of development, and discuss how they can be mitigated through internationally coordinated action. (Photo by Leon Neal/Getty Images)

    Leon Neal | Getty Images News | Getty Images

    China’s vice minister of technology said Beijing will cooperate with international counterparts — including the U.S. — to find common ground on frameworks for safe and responsible artificial intelligence development.

    His comments were delivered at the U.K.’s AI safety summit, which officially kicked off Wednesday at Bletchley Park, England.

    Wu Zhaohui, China’s vice minister of science and technology, said the country was willing to “enhance dialogue and communication in AI safety with all sides.”

    China will contribute to an “international mechanism [on AI], broadening participation, and a governance framework based on wide consensus delivering benefits to the people, and building a community with a shared future for mankind,” he said, according to an official event translation.

    The remarks arrive at a time when Beijing is locked in a tense technology dispute with the U.S.

    China has been pushing through its own rules governing generative AI, a distinct form of AI that is trained on vast quantities of data to create new, human-like written and visual content in response to human inputs. Governments in the U.K., European Union, and U.S. are developing their own regulatory regimes for the technology.

    China and 27 other countries signed a major agreement on AI Wednesday, known as the “Bletchley Declaration,” which promotes a “shared understanding of the opportunities and risks posed by frontier AI and the need for governments to work together to meet the most significant challenges.”

    As part of this, nations agreed to an “urgent need to understand and collectively manage potential risks through a new joint global effort,” the U.K. government said.

    The U.S. and China have been at loggerheads over tech for some time. That battle intensified this year, with the U.S. Department of Commerce announcing new trade restrictions on sales of U.S. tech giant Nvidia’s advanced H800 and A800 chips to China.

    That has placed significant pressure on China’s generative AI developers, many of which rely on Nvidia’s chips.

    Michelle Donelan, the U.K. science, innovation and technology minister, told CNBC’s Arjun Kharpal that it is a “massive” gesture that Chinese government officials chose to attend the U.K. AI summit on Wednesday.

    “We do … at least have to try to engage them in this conversation,” Donelan said. “I always compare it to climate change. If we all act individually and in isolation, and not in a coordinated and collective fashion, we won’t have the desired impact.”

    She added: “AI is exactly the same. It doesn’t respect geographical boundaries.”

    The U.K. is looking to foster international coordination between China and its other global partners. This has proven a thorny issue with Beijing, which the U.S. has accused of national security risks surrounding its critical technologies such as AI. China denies these allegations.

    U.S. Secretary of Commerce Gina Raimondo said earlier in the day that the U.S. is showing “unbelievable leadership” in its bid to ensure AI is developed more safely, “securing voluntary commitments by U.S. AI companies who have committed to safe secure and trustworthy.”

    “We want to expand information sharing research and collaboration and also policy alignment across the globe,” she added.

    Raimondo also said the U.S. would look to launch an AI safety institute, hot on the heels of the U.K announcing its own intentions for a similar initiative last week.

    Source link

  • Google DeepMind boss hits back at Meta AI chief over ‘fearmongering’ claim

    Google DeepMind boss hits back at Meta AI chief over ‘fearmongering’ claim

    The boss of Google DeepMind pushed back on a claim from Meta’s artificial intelligence chief alleging the company is pushing worries about AI’s existential threats to humanity to control the narrative on how best to regulate the technology.

    In an interview with CNBC’s Arjun Kharpal, Hassabis said that DeepMind wasn’t trying to achieve “regulatory capture” when it came to the discussion on how best to approach AI. It comes as DeepMind is closely informing the U.K. government on its approach to AI ahead of a pivotal summit on the technology due to take place on Wednesday and Thursday.

    Over the weekend, Yann LeCun, Meta’s chief AI scientist, said that DeepMind’s Hassabis, along with OpenAI CEO Sam Altman, Anthropic CEO Dario Amodei were “doing massive corporate lobbying” to ensure only a handful of big tech companies end up controlling AI.

    He also said they were giving fuel to critics who say that highly advanced AI systems should be banned to avoid a situation where humanity loses control of the technology.

    “If your fearmongering campaigns succeed, they will *inevitably* result in what you and I would identify as a catastrophe: a small number of companies will control AI,” LeCun said on X, the platform formerly known as Twitter, on Sunday.

    “Like many, I very much support open AI platforms because I believe in a combination of forces: people’s creativity, democracy, market forces, and product regulations. I also know that producing AI systems that are safe and under our control is possible. I’ve made concrete proposals to that effect.”

    LeCun is a big proponent of open-source AI, or AI software that is openly available to the public for research and development purposes. This is opposed to “closed” AI systems, the source code of which is kept a secret by the companies producing it.

    LeCun said that the vision of AI regulation Hassabis and other AI CEOs are aiming for would see open-source AI “regulated out of existence” and allow only a small number of companies from the West Coast of the U.S. and China control the technology.

    Meta is one of the largest technology companies working to open-source its AI models. The company’s LLaMa large language model (LLM) software is one of the biggest open-source AI models out there, and has advanced language translation features built in.

    In response to LeCun’s comments, Hassabis said Tuesday: “I pretty much disagree with most of those comments from Yann.”

    “I think the way we think about it is there’s probably three buckets or risks that we need to worry about,” said Hassabis. “There’s sort of near term harms things like misinformation, deepfakes, these kinds of things, bias and fairness in the systems, that we need to deal with.”

    “Then there’s sort of the misuse of AI by bad actors repurposing technology, general-purpose technology for bad ends that they were not intended for. That’s a question about proliferation of these systems and access to these systems. So we have to think about that.”

    “And then finally, I think about the more longer-term risk, which is technical AGI [artificial general intelligence] risk,” Hassabis said.

    “So the risk of themselves making sure they’re controllable, what value do you want to put into them have these goals and make sure that they stick to them?”

    Hassabis is a big proponent of the idea that we will eventually achieve a form of artificial intelligence powerful enough to surpass humans in all tasks imaginable, something that’s referred to in the AI world as “artificial general intelligence.”

    Hassabis said that it was important to start a conversation about regulating potentially superintelligent artificial intelligence now rather than later, because if it is left too long, the consequences could be grim.

    “I don’t think we want to be doing this on the eve of some of these dangerous things happening,” Hassabis said. “I think we want to get ahead of that.”

    Meta was not immediately available for comment when contacted by CNBC.

    Cooperation with China

    Both Hassabis and James Manyika, Google’s senior vice president of research, technology and society, said that they wanted to achieve international agreement on how best to approach the responsible development and regulation of artificial intelligence.

    Can China's ChatGPT clones give it an edge over the U.S. in an A.I. arms race?

    Manyika said he thinks it’s a “good thing” that the U.K. government, along with the U.S. administration, agree there is a need to reach global consensus on AI.

    “I also think that it’s going to be quite important to include everybody in that conversation,” Manyika added.

    “I think part of what you’ll hear often is we want to be part of this, because this is such an important technology, with so much potential to transform society and improve lives everywhere.”

    One point of contention surrounding the U.K. AI summit has been the attendance of China. A delegation from the Chinese Ministry of Science and Technology is due to attend the event this week.

    That has stirred feelings of unease among some corners of the political world, both in the U.S. government and some of Prime Minister Rishi Sunak’s own ranks.

    These officials are worried that China’s involvement in the summit could pose certain risks to national security, particularly as Beijing has a strong influence over its technology sector.

    Asked whether China should be involved in the conversation surrounding artificial intelligence safety, Hassabis said that AI knows no borders, and that it required coordination from actors in multiple countries to get to a level of international agreement on the standards required for AI .

    “This technology is a global technology,” Hassabis said. “It’s really important, at least on a scientific level, that we have as much dialogue as possible.”

    Asked whether DeepMind was open as a company to working with China, Hassabis responded: “I think we have to talk to everyone at this stage.”

    U.S. technology giants have shied away from doing commercial work in China, particularly as Washington has applied huge pressure on the country on the technology front.

    Source link

  • The UK is gearing up for a pivotal summit on AI. Here’s what you need to know

    The UK is gearing up for a pivotal summit on AI. Here’s what you need to know

    British Prime Minister Rishi Sunak delivers a speech on artificial intelligence at the Royal Society, Carlton House Terrace, on Oct. 26, 2023, in London.

    Peter Nicholls | Getty Images News | Getty Images

    The U.K. is set to hold its landmark artificial intelligence summit this week, as political leaders and regulators grow more and more concerned by the rapid advancement of the technology.

    The two-day summit, which takes place on Nov. 1 and Nov. 2, will host government officials and companies from around the world, including the U.S. and China, two superpowers in the race to develop cutting-edge AI technologies.

    It is Prime Minister Rishi Sunak’s chance to make a statement to the world on the U.K.’s role in the global conversation surrounding AI, and how the technology should be regulated.

    Ever since the introduction of Microsoft-backed OpenAI’s ChatGPT, the race toward the regulation of AI from global policymakers has intensified.

    Of particular concern is the potential for the technology to replace — or undermine — human intelligence.

    Where it’s being held

    The AI summit will be held in Bletchley Park, the historic landmark around 55 miles north of London.

    Bletchley Park was a codebreaking facility during World War II.

    Getty

    It’s the location where, in 1941, a group of codebreakers led by British scientist and mathematician Alan Turing cracked Nazi Germany’s notorious Enigma machine.

    It’s also no secret that the U.K. is holding the summit at Bletchley Park because of the site’s historical significance — it sends a clear message that the U.K. wants to reinforce its position as a global leader in innovation.

    What it seeks to address

    The main objective of the U.K. AI summit is to find some level of international coordination when it comes to agreeing some principles on the ethical and responsible development of AI models.

    The summit is squarely focused on so-called “frontier AI” models — in other words, the advanced large language models, or LLMs, like those developed by companies such as OpenAI, Anthropic, and Cohere.

    It will look to address two key categories of risk when it comes to AI: misuse and loss of control.

    Misuse risks involve a bad actor being aided by new AI capabilities. For example, a cybercriminal could use AI to develop a new type of malware that cannot be detected by security researchers, or be used to help state actors develop dangerous bioweapons.

    Loss of control risks refer to a situation in which the AI that humans create could be turned against them. This could “emerge from advanced systems that we would seek to be aligned with our values and intentions,” the government said.

    Who’s going?

    Major names in the technology and political world will be there.

    U.S. Vice President Kamala Harris speaks during the conclusion of the Investing in America tour at Coppin State University in Baltimore, Maryland, on July 14, 2023.

    Saul Loeb | AFP | Getty Images

    They include:

    Who won’t be there?

    Several leaders have opted not to attend the summit.

    French President Emmanuel Macron.

    Chesnot | Getty Images News | Getty Images

    They include:

    • U.S. President Joe Biden
    • Canadian Prime Minister Justin Trudeau
    • French President Emmanuel Macron
    • German Chancellor Olaf Scholz

    When asked whether Sunak feels snubbed by his international counterparts, his spokesperson told reporters Monday, “No, not at all.”

    “I think we remain confident that we have brought together the right group of world experts in the AI space, leading businesses and indeed world leaders and representatives who will be able to take on this vital issue,” the spokesperson said.

    “This is the first AI safety summit of its kind and I think it is a significant achievement that for the first time people from across the world and indeed from across a range of world leaders and indeed AI experts are coming together to look at these frontier risks.” 

    Will it succeed?

    The British government wants the AI Summit to serve as a platform to shape the technology’s future. It will emphasize safety, ethics, and responsible development of AI, while also calling for collaboration at a global level.

    Sunak is hoping that the summit will provide a chance for Britain and its global counterparts to find some agreement on how best to develop AI safely and responsibly, and apply safeguards to the technology.

    In a speech last week, the prime minister warned that AI “will bring a transformation as far reaching as the industrial revolution, the coming of electricity, or the birth of the internet” — while adding there are risks attached.

    “In the most unlikely but extreme cases, there is even the risk that humanity could lose control of AI completely through the kind of AI sometimes referred to as super intelligence,” Sunak said.

    Sunak announced the U.K. will set up the world’s first AI safety institute to evaluate and test new types of AI in order to understand the risks.

    He also said he would seek to set up a global expert panel nominated by countries and organizations attending the AI summit this week, which would publish a state of AI science report.

    A particular point of contention surrounding the summit is Sunak’s decision to invite China — which has been at the center of a geopolitical tussle over technology with the U.S. — to the summit. Sunak’s spokesperson has said it is important to invite China, as the country is a world leader in AI.

    International coordination on a technology as complex and multifaceted as AI may prove difficult — and it is made all the more so when two of the big attendees, the U.S. and China, are engaged in a tense clash over technology and trade.

    China’s President Xi Jinping and U.S. President Joe Biden at the G20 Summit in Nusa Dua on the Indonesian island of Bali on Nov. 14, 2022.

    Saul Loeb | Afp | Getty Images

    Washington recently curbed sales of Nvidia’s advanced A800 and H800 artificial intelligence chips to China.

    Different governments have come up with their own respective proposals for regulating the technology to combat the risks it poses in terms of misinformation, privacy and bias.

    The EU is hoping to finalize its AI Act, which is set to be one of the world’s first pieces of legislation targeted specifically at AI, by the end of the year, and adopt the regulation by early 2024 before the June European Parliament elections.

    Stateside, Biden on Monday issued an executive order on artificial intelligence, the first of its kind from the U.S. government, calling for safety assessments, equity and civil rights guidance, and research into AI’s impact on the labor market.

    James Manyika, senior vice president of research, technology, and society at Google, said AI was a “transformative technology” with potential to help address some of society’s most pressing challenges” — but he added it was vital to ensure the benefits are “broadly distributed.”

    “Our hopes for the Summit are twofold. First, that it helps facilitate countries across the world developing a shared understanding of both the near and long-term opportunities and risks of frontier AI models. Second, that it prioritizes international coordination to ensure a consistent approach to AI governance,” ,” Manyika said in emailed comments shared with CNBC ahead of the summit.

    Emad Mostaque, CEO of open-source British AI company Stability, said the U.K. has a “once in a generation opportunity to become an AI superpower” and ensure that AI benefits all, not just the Big Tech firms.

    “We believe this is best achieved through a shared vision of the positive transformation this technology will unleash as well as a clear understanding of the emerging risks, so that we can innovate with integrity and align our efforts and systems to ensure our safety and security,” Mostaque said.

    Shortcomings of the summit

    Some tech industry officials think that the summit is too limited in its focus. They say that, by keeping the summit restricted to only frontier AI models, it is a missed opportunity to encourage contributions from members of the tech community beyond frontier AI.

    “I do think that by focusing just on frontier models, we’re basically missing a large piece of the jigsaw,” Sachin Dev Duggal, CEO of London-based AI startup Builder.ai, told CNBC in an interview last week.

    “By focusing only on companies that are currently building frontier models and are leading that development right now, we’re also saying no one else can come and build the next generation of frontier models.”

    Some are frustrated by the summit’s focus on “existential threats” surrounding artificial intelligence and think the government should address more pressing, immediate-term risks, such as the potential for deepfakes to manipulate 2024 elections.

    “It’s like the fire brigade conference where they talk about dealing with a meteor strike that obliterates the country,” Stefan van Grieken, CEO of generative AI firm Cradle, told CNBC.

    “We should be concentrating on the real fires that are literally present threats.”

    However, Marc Warner, CEO of British AI startup Faculty.ai, said he believes that focusing on the long-term, potentially devastating risks of achieving artificial general intelligence to be “very reasonable.”

    “I think that building artificial general intelligence will be possible, and I think if it is possible, there is no scientific reason that we know of right now to say that it’s guaranteed safe,” Warner told CNBC.

    “In some ways, it’s sort of the dream scenario that governments tackle something before it’s a problem rather than waiting until stuff gets really bad.”

    Source link

  • Pinterest jumps on better-than-expected third-quarter results

    Pinterest jumps on better-than-expected third-quarter results

    A banner for the online image board Pinterest Inc. hangs from the New York Stock Exchange on the morning Pinterest made its initial public offering, April 18, 2019.

    Spencer Platt | Getty Images

    Pinterest reported third-quarter earnings on Monday that beat on the top and bottom lines. The stock jumped more than 11% in extended trading.

    Here’s how the company did:

    • Revenue: $763.2 million vs. $743.5 million expected, according to LSEG, formerly known as Refinitiv.
    • Earnings: 28 cents per share, adjusted, vs. 20 cents expected, according to LSEG.

    Pinterest’s revenue increased 11% from $684.6 million in the third quarter of 2022.  

    The number of global monthly active users in the quarter rose 8% from a year earlier to 482 million. Analysts were expecting Pinterest to report 473 million global monthly active users. Average revenue per user was $1.61, which was higher than analysts’ projections of $1.59.

    “As we lean into Pinterest’s unique differentiators as a visual search, discovery, and shopping platform, we’re finding our best product market fit in years,” Pinterest CEO Bill Ready said in a statement. “Our users are engaging deeply and we’re delivering better results for advertisers through improved measurement and innovation across the full funnel.”

    For the fourth quarter, Pinterest said it expects revenue growth of 11% to 13%. The midpoint is higher than analyst estimates, which call for growth of 11.3%, according to LSEG.

    Last week, Meta reported better-than-expected third-quarter financial results, but its stock price dropped over 3% after finance chief Susan Li told analysts that the company “observed softer ads in the beginning of the fourth quarter” due to the Israel-Hamas war.

    Because of the volatility surrounding the Middle East crisis, Meta widened its fourth-quarter revenue guidance range. Snap also noted some detrimental effects from the Israel-Hamas war in its earnings report last week, and said it wouldn’t provide official fourth-quarter guidance “due to the unpredictable nature of war.”

    Snap said it “observed pauses in spending from a large number of primarily brand-oriented advertising campaigns immediately following the onset of the war in the Middle East.”

    Pinterest reported a net income for the third quarter of $6.73 million, or a penny a share, compared with a loss of $65.2 million, or 10 cents a share, a year earlier.

    The company’s expenses in the quarter rose nearly 2% to $768.2 million from the $753.9 million a year earlier. The company said that its fourth quarter 2023 non-GAAP operating expenses, which don’t include the costs of revenue, will decline in the range of 9% to 13% year over year.

    Company executives will host a conference call with analysts on Monday at 4:30 p.m. ET.

    WATCH: Meta has regained the confidence of investors, says Altimeter’s Brad Gerstner

    Source link

  • Jamie Dimon’s stock-moving trades show why investors should track CEOs’ buying and selling

    Jamie Dimon’s stock-moving trades show why investors should track CEOs’ buying and selling

    Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co. says the new U.K. government should be “given the benefit of the doubt.”

    Al Drago | Bloomberg | Getty Images

    For the first time in nearly two decades running JPMorgan Chase, CEO Jamie Dimon will voluntarily sell stock in the bank.

    The disclosure, in a securities filing Friday, detailed next year’s planned sales — pressuring JPMorgan (JPM) shares and the Dow Jones Industrial Average and highlighting why tracking trades made by executives involving the companies they lead should be an important part of every investor’s homework.

    Dimon is setting up the trades through a predetermined plan that executives at publicly traded companies use to protect against insider trading accusations. It will mark the first time that the 67-year-old CEO has offloaded shares of JPMorgan for non-technical reasons, such as exercising options.  

    The planned sales – amounting to roughly 12% of the JPMorgan stock owned by Dimon and his family – are being done for tax planning and personal wealth diversification reasons, the bank said. Both are common reasons for executives to sell stock in their firms. The bank also said Dimon continues to believe JPMorgan’s prospects are “very strong,” and his planned trades are not related in any way to succession. Such sales are often seen when CEOs get close to retirement.

    As you can see, making sense of insider transactions can sometimes be a tall task.

    When they buy, it’s generally seen as an encouraging sign by Wall Street — and there is, perhaps, no better example of this than another move by Dimon in 2016, when he purchased JPMorgan stock.

    Fears of a weakening global economy sent stocks into a tailspin in early 2016, driving shares of JPMorgan down nearly 20% and the S&P 500 down more than 10% at their lows.

    But that weakness didn’t last long.

    The trajectory of the market changed just six weeks into the new year. That’s when Dimon disclosed — after the closing bell on Feb. 11, 2016 — that he bought 500,000 shares of the bank, worth about $26 million at the time.

    Dimon’s stock purchase, intended to show confidence in the financial sector, has become legendary on Wall Street. It ultimately coincided with — or perhaps was the reason for — the closing lows for not only shares of JPMorgan in 2016 but also the S&P 500 overall.

    Jim Cramer has since dubbed Feb. 11, 2016: “The Jamie Dimon Bottom.” JPMorgan finished up 30% that year, while the S&P 500 ended more than 9% higher — both huge turnarounds.

    While executive stock sales — such as Dimon’s planned transactions next year — are not universally red flags, they can get complicated.

    Source link

  • The Israel-Hamas war is affecting the financial outlooks of these large companies

    The Israel-Hamas war is affecting the financial outlooks of these large companies

    The ‘Rhapsody of the Seas’ cruise liner carrying US citizens leaves the Israeli port of Haifa to be evacuated to the Mediterranean island of Cyprus on October 16, 2023, amid the ongoing battles between Israel and the Palestinian Islamist group Hamas. 

    Aris Messinis | AFP | Getty Images

    Some of the world’s most well-known companies are already seeing the Israel-Hamas war weighing on operations.

    On Oct. 7, militant group Hamas struck Israeli towns in a surprise attack and took more than 200 hostages. More than 7,000 people have been killed in Gaza, per Palestinian health officials, while the Israeli Defense Forces said more than 1,400 have been killed in the country.

    Corporations that do business or have operations in the region have already begun seeing the war change their financial outlooks as the unrest weighs on everything from advertising dollars to tourism to supply chains. These early admissions come as world leaders grow increasingly concerned that the conflict will further intensify, with international calls for a cease-fire being rejected.

    United Airlines said fourth-quarter performance could vary depending on the length of flight suspensions in Tel Aviv. Its updated range for adjusted earnings per share came in below analysts’ forecasts.

    “We have unmatched geographic diversity with a large domestic network complemented by the largest long-haul international network and both are solidly profitable,” CEO Scott Kirby said earlier this month. “While this is a great attribute, it does create some short-term risk and volatility as we’re seeing right now with the transitory hit to margins this quarter as a result of the tragedy in Israel.”

    Travel changes

    United is one of several carriers including Delta Air Lines and American Airlines that have rushed to change schedules as the conflict has unfolded. Notably, El Al, the Israeli flag carrier, said it would fly on the Jewish Sabbath for the first time in more than four decades to help bring reservists abroad back to the country.

    Across the travel industry, the war is on the mind of corporate leaders. Plane-maker Boeing said in a regulatory filling that the conflict could potentially affect certain suppliers, in addition to airlines.

    About 1.5% of Royal Caribbean capacity in the fourth quarter had planned to visit Israel, CEO Jason Liberty said on the cruise line’s call on Thursday. A few of the adjusted sailings that were previously expected have home ports in Haifa, a city in the northern region of the country.

    The company also offered free use of its Rhapsody of the Seas vessel to the U.S. government to aid in the evacuation of Americans from Israel. Between the changed itineraries and use of the ship, the company estimated it would have an impact of 5 cents per share on its earnings. The company expects to see between $6.58 and $6.63 in adjusted earnings per share for the year.

    El Al Airlines airplane flying on February 2023.

    Nurphoto | Nurphoto | Getty Images

    “I would … like to recognize the incredible effort from our shoreside teams and crew on board Rhapsody of the Seas who have been working tirelessly with the U.S. Department of State to help safely evacuate Americans from Israel,” Liberty said. “My heartfelt gratitude goes out to all involved.”

    Still, Liberty said the cruise line’s customer base is sticky, so it may become more of a question of where they are going to travel rather than if they are going to cancel their plans.

    “They’re going to go somewhere with us,” he said. “That’s what we’re focused on making sure they’re doing.”

    ‘Unpredictable nature’

    Technology companies were among those seeing the conflict affect the workforce, advertising spending and supply chains.

    Snap said in its latest earnings release that it saw pauses in spending from a “large number of primarily brand-oriented advertising campaigns” immediately after the war began. That has weighed on revenue quarter to date.

    While the company said some of the campaigns that initially paused have now resumed, the company has also seen others that didn’t originally stop advertising now pause. Snap said it would be “imprudent” to offer formal guidance on what to expect for the current quarter “due to the unpredictable nature of war.”

    Meta finance chief Susan Li said the Facebook and Instagram parent has seen softer advertising spending so far in the quarter, correlating in timeline with the start of the conflict. Li noted that it isn’t necessarily due to any one event, but cooler spending has aligned in the past with the start of conflicts such as the Russian invasion of Ukraine last year.

    “This is something that we’re continuing to monitor,” Li told analysts during the company’s earnings call on Wednesday. “We’ve reflected the latest trends and advertiser reaction that we’ve seen into our Q4 outlook — which, again, we think reflects the greater uncertainty and volatility in the landscape ahead.”

    Align Technology is expecting increased headwinds from the uncertainty and potential supply chain issues tied to the conflict, according to Chief Financial Officer John Morici. He said the fourth-quarter operating margin, when adjusted for generally accepted accounting principles, should be down from the prior quarter as the company offers severance to adjust to headcount changes in this situation.

    Multiple corporations including Aon and West Pharmaceutical noted a continued focus on supporting employees and their family members who live and work in the region. Israel is known in part for its vibrant startup and technology scene, with entrepreneurs now wondering how to push forward in the new normal, especially as citizens get called to serve in reserve units.

    ServiceNow CEO William McDermott said during the company’s call with analysts on Wednesday that employee Shlomi Sividia was among those murdered at the Supernova Music Festival. He said Sividia was “highly respected, admired and a good friend to many.”

    “We stand in solidarity with our team and with their families. Terrorism has caused the unfathomable humanitarian crisis that now engulfs millions of people in Israel and Gaza,” McDermott said. “Our hearts pray for the innocent on all sides. Even with optimism in short supply, we choose to honor the dream of a peaceful and prosperous future for the Middle East region.”

    Companies specializing in defense have also been on alert as another international conflict breaks out.

    General Dynamics, the biggest U.S. artillery shell producer, had already been ramping up artillery production to meet needs amid the war in Ukraine, according to finance chief Jason Aiken. Now, the company is working to increase production to as high as 100,000 units per month, up from 14,000.

    “I think the Israel situation is only going to put upward pressure on that demand,” Aiken said during General Dynamics’ Wednesday earnings call.

    — CNBC’s Robert Hum, Morgan Brennan and Leslie Josephs contributed reporting.

    Source link

  • Here’s what Sam Bankman Fried said in his first full day on the stand in his $8 billion fraud trial

    Here’s what Sam Bankman Fried said in his first full day on the stand in his $8 billion fraud trial

    Former FTX Chief Executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, walks outside the Manhattan federal court in New York City, U.S. March 30, 2023. 

    Amanda Perobelli | Reuters

    FTX founder Sam Bankman-Fried told jurors in his criminal trial on Friday that he didn’t commit fraud, and that he thought the crypto exchange’s outside expenditures, like paying for the naming rights at a sports arena, came out of company profits.

    On Friday morning, defense attorney Mark Cohen asked Bankman-Fried if he defrauded anyone.

    “No, I did not,” Bankman-Fried responded.

    Cohen followed by asking if he took customer funds, to which Bankman-Fried said “no.”

    Bankman-Fried, 31, faces seven criminal counts, including wire fraud, securities fraud and money laundering, that could land him in prison for life if he’s convicted. Bankman-Fried, the son of two Stanford legal scholars, has pleaded not guilty in the case.

    Prior to the defendant’s appearance on the stand, the four-week trial was highlighted by the testimony of multiple members of FTX’s top leadership team as well as the people who ran sister hedge fund Alameda Research. They all singled out Bankman-Fried as the mastermind of a scheme to use FTX customer money to fund everything from venture investments and a high-priced condo in the Bahamas to covering Alameda’s crypto losses.

    Courtroom sketch showing Sam Bankman Fried questioned by his attorney Mark Cohen. Judge Lewis Kaplan on the bench

    Artist: Elizabeth Williams

    Prosecutors walked former leaders of Bankman-Fried’s businesses through specific actions taken by their boss that resulted in clients losing billions of dollars last year. Several of the witnesses, including Bankman-Fried’s ex-girlfriend Caroline Ellison, who ran Alameda, have pleaded guilty to multiple charges and are cooperating with the government.

    ‘Significant oversights’

    On Friday, Bankman-Fried acknowledged that one of his biggest mistakes was not having a risk management team. That led to “significant oversights,” he said.

    At the start of his testimony, Cohen walked Bankman-Fried through his background and how he got into crypto. The defendant said he studied physics at the Massachusetts Institute of Technology and graduated in 2014. He then worked as a trader on the international desk at Jane Street for over three years, managing tens of billions of dollars a day in trading. That’s where he learned the fundamentals of things like arbitrage trading.

    In the fall of 2017, Bankman-Fried founded Alameda Research.

    “This was when crypto was starting to become publicly visible for the first time,” Bankman-Fried testified.

    He said people were excited about it, watching bitcoin, which had jumped from $1,000 to $10,000 in a two-month period. Banks and brokers weren’t involved yet and it seemed like there would probably be big demand for an arbitrage provider, he said.

    “I had absolutely no idea” how cryptocurrencies worked, Bankman-Fried said. “I just knew they were things you could trade.”

    The first Alameda office was in an Airbnb in Berkeley, California, he said. It was listed as a two bedroom but they used the couch in the living room as a third bed and also repurposed the attic as a fourth bedroom.

    He started FTX in 2019. Trading volume grew substantially on FTX from a few million dollars a day to tens of millions of dollars that year to hundreds of millions of dollars in 2020. By 2022, that number was up to $10 billion to $15 billion per day in trading volume, he said.

    Bankman-Fried said Alameda was permitted to borrow from FTX, but his understanding was that the money was coming from margin trades, collateral from other margin trades or assets earning interest on the platform.

    At FTX, there were no general restrictions on what could be done with funds that were borrowed as long as the company believed assets were greater than liabilities, Bankman-Fried testified.

    In 2020, a routine liquidation gone wrong led to some of the special borrowing permissions at Alameda, he said. The risk engine was sagging under the weight of growth. A liquidation that should have been in the thousands of dollars was in the trillions of dollars. Alameda was suddenly underwater because of closing the position.

    The incident exposed a larger concern, that the potential of an erroneous liquidation of Alameda could be disastrous for users.

    Bankman-Fried said he talked to FTX’s engineering director Nishad Singh and co-founder Gary Wang, both of whom testified earlier on behalf of the prosecution. He suggested creating an alert, which would prompt the user to deposit more collateral, or a delay, Bankman-Fried said. In response to this feedback, Singh and Wang told Bankman-Fried they had implemented a feature like that, he said, adding that he later learned it was the “allow negative” feature.

    Bankman-Fried testified that he wasn’t aware of the amount Alameda was borrowing or its theoretical max. As long as Alameda’s net asset value was positive and the scale of borrowing was reasonable, increasing its line of credit from so that Alameda could keep filling orders was fine, he said. Earlier testimony from Singh and Wang suggested the line of credit was raised to $65 billion, a number Bankman-Fried said he was not aware of.

    Tough sell

    Convincing the jury will be a tall order for Bankman-Fried after a mountain of damning evidence was presented by the government.

    Prosecutors entered corroborating materials, including encrypted Signal messages and other internal documents that appear to show Bankman-Fried orchestrating the spending of FTX customer money.

    The defense’s case, which consists of Bankman-Fried’s testimony along with that of two witnesses who took the stand Thursday morning, hinges largely on whether the jury believes the defendant didn’t intend to commit fraud.

    The logo of FTX is seen on a flag at the entrance of the FTX Arena in Miami, Florida, November 12, 2022.

    Marco Bello | Reuters

    In Friday afternoon testimony, Bankman-Fried was asked about FTX’s marketing and promotions.

    He said there were 15 people on the marketing team, and noted that he got more involved with it as time progressed. In particular, he discussed the naming rights in 2021 for the basketball arena in Miami, which was to be a 19-year deal for $135 million.

    Bankman-Fried said the sponsorship of FTX Arena would deliver returns for the company and create wide brand awareness because even he, as an “average level sports fan,” could name dozens of stadiums. He said the investment would be about $10 million a year, or 1% of revenue. The company had been deciding among a few different stadiums, including the homes to the NFL’s New Orleans Saints and Kansas City Chiefs, Bankman-Fried said.

    A crucial part of his testimony came when Bankman-Fried said he thought the stadium deal funding was coming from revenue from the exchange and returns from venture investments, as opposed to customer money.

    Similarly, Bankman-Fried testified that he believed the lavish Bahamas properties were being paid for with FTX operating cash that came from revenue and venture investments. He said having available property to rent was a necessary incentive if the company wanted to poach developers from Facebook and Google.

    As for the venture investments, Bankman-Fried said he thought that money was coming from Alameda’s operating profits and third-party lending desks. Alameda’s venture arm was renamed Clifton Bay Investments, which Bankman-Fried said was a first step in building a dedicated venture brand.

    When asked about loans he took from the business, Bankman-Fried said they were to pay for venture investments and political donations. He said that, as the primary owner of Alameda, he thought he had a few billion dollars in arbitrage profit from the past few years and there was no reason he couldn’t borrow from it. He said the loans, except for the most recent one prior to the firm’s bankruptcy filing, were all documented through promissory notes.

    Bankman-Fried said he never directed Singh or former FTX executive Ryan Salame to make political donations. Salame pleaded guilty in September to federal campaign finance and money-transmitting crimes, admitting that from fall 2021 to November 2022, he steered tens of millions of dollars of political contributions to both Democrats and Republicans in his own name when the money actually came from Alameda.

    Bankman-Fried, who allegedly used FTX customer funds to help finance over $100 million in political giving during the 2022 midterms, testified that he talked to politicians about pandemic prevention and crypto regulation. He said he had a vested interested in crypto policy even though FTX’s U.S. operation was relatively small, because the company was seeking to offer crypto futures products in the U.S.

    Bankman-Fried then discussed his public persona. He said he hadn’t intended to be the public face of the company because he’s “naturally introverted.” But a few interviews went well, and it snowballed from there. He said he was the only person at the company that the press sought.

    He wore T-shirts and shorts because they were comfortable and said he let his hair grow out because he was busy and lazy.

    Bankman-Fried was photographed at the 2022 Super Bowl in Los Angeles with Katy Perry. He told the jury, which was previously presented with the photo by the prosecution, that he thought it was natural to go to the game because he was in town for meetings and the company had a commercial running.

    “I thought maybe it would be interesting,” he said.

    Shifting blame to his ex-girlfriend

    The afternoon testimony largely focused on Bankman-Fried’s repeated and unsuccessful request to Ellison that she hedge Alameda’s risk. Bankman-Fried said in late 2021, he had talked to Ellison about putting on trades to protect against the risk of market moves since Alameda had been leveraged long, meaning they would lose money if the market went down.

    Ellison said she would look into it, which Bankman-Fried said he “interpreted” as her being “far less enthusiastic about it.” Over the course of 2022, Bankman-Fried said every two months he would check in to see if Alameda had hedged, and each time he was told not yet, but Ellison would say she was planning to do so in the near future.

    Specifically, Bankman-Fried said he had talked with Ellison and Ramnik Arora, who had been the head of product at FTX, about putting a $2 billion hedge on the company’s investment in Genesis Digital Assets, a bitcoin miner. He told the jury that the hedge was never made.

    There was also more detail on how Bankman-Fried was told about FTX’s $8 billion liability. According to the defendant, in October 2022, developers built a Google database that included financial data. That’s where Bankman-Fried noticed the negative $8 billion balance, which he said he was “very surprised” to see.

    Cohen then brought the jury through the summer months of 2022, a time when Alameda’s lenders, specifically Genesis, BlockFi, Celsius and Voyager, all had direct conversations with Bankman-Fried about the need for emergency capital. In the end, only BlockFi and Voyager received funds from Alameda and Bankman-Fried.

    In late 2021 and early 2022, Bankman-Fried said he wanted FTX revenue to be above $1 billion because it was a round number. He asked company executives if there were ways to reach that mark. Singh said he’d dealt with it by staking the company’s investment in crypto token Serum, a way of putting the coins to work. That had added another $50 million in revenue. Bankman-Fried testified that he was “a little surprised” they found that additional money, but it got him to $1 billion.

    — CNBC’s Dawn Giel contributed to this report

    WATCH: Sam Bankman-Fried testifying in his criminal case

    Sam Bankman-Fried set to testify at fraud trial in what experts deem a major gamble for the case

    Source link

  • Meta’s ad rebound gets huge assist from China even though its services are banned there

    Meta’s ad rebound gets huge assist from China even though its services are banned there

    A Facebook sign is seen at the second China International Import Expo (CIIE) in Shanghai, China November 6, 2019.

    Aly Song | Reuters

    Meta may be banned from operating in China, but the company is finding plenty of growth coming from the world’s second-biggest economy.

    In its third-quarter earnings report on Wednesday, Meta said sales rose 23% from a year earlier, illustrating the company’s ability to weather a tough digital ad market better than smaller rivals like Snap and X, formerly known as Twitter.

    Susan Li, Meta’s finance chief, told analysts on the earnings call that Chinese companies played a major role this quarter, continuing a theme from recent periods.

    Online commerce and gaming “benefited from spend among advertisers in China reaching customers in other markets,” Li said. That means Chinese companies are spending big money on Meta’s platforms like Facebook and Instagram to send targeted advertising to the company’s billions of users around the world.

    Among Meta’s geographic regions, Li said the rest of the world category showed the strongest growth, at 36%. Europe was next at 35%, followed by Asia-Pacific at 19% and North America at 17%. The first category includes South America, and Li said China was a big reason for the rapid expansion.

    “Brazil was a strong contributor to the region’s acceleration due in part to increased advertisers demand from China advertisers targeting users in Brazil,” Li said.

    Facebook, along with Google and Twitter, are all blocked in China due to the country’s Great Firewall. Facebook and its sibling apps have been inaccessible there since 2009.

    Still, Meta has witnessed a “longer-term trend of overall growth” from the China market, Li said, though there have been some “periods of volatility.” For instance, she said that the past two years were marred by higher shipping costs that resulted from the Covid pandemic, which also brought strict lockdown rules in China.

    But with China opening up more this year and the worldwide supply chain problems easing, Chinese companies are looking to expand their businesses around the globe and are using Meta as a major tool.

    Ultimately, “spending from Chinese advertisers further accelerated for us in Q3,” Li said, adding that “lower shipping costs and easing regulations on the gaming industry have served as tailwinds here.”

    Li stressed “the potential for volatility in the future” particularly because “there are so many macro factors at play that are quite hard to predict.”

    In particular, Li cited the unpredictability in the Middle East due to the Israel-Hamas war, which led Meta to widen its revenue guidance range.

    “We have observed softer ads in the beginning of the fourth quarter, correlating with the start of the conflict, which is captured in our Q4 revenue outlook,” Li said. “It’s hard for us to attribute demand softness directly to any specific geopolitical event.”

    Meta shares dropped more than 3% in extended trading, wiping out earlier gains, after Li’s cautionary comments.

    Watch: Big tech earnings, AI usage and growth under scrutiny

    Meta will put up 'pretty strong' Q3 results, says JMP Securities' Andrew Boone

    Source link

  • States sue Meta over alleged harm to children on Facebook, Instagram

    States sue Meta over alleged harm to children on Facebook, Instagram

    A group of 41 attorneys general from dozens of states are filing lawsuits claiming Meta Platforms Inc. built addictive features in its Facebook and Instagram services that harm children.

    The lawsuits in federal and state courts allege Meta
    META,
    -0.47%

    knowingly marketed its products to users under the age of 13, who are barred from the platform by both Meta’s policies and federal law. The states are seeking to force Meta to change product features that they say pose dangers to young users.

    The lawsuit, filed Tuesday in federal court in Northern California, claims Meta, “has harnessed powerful and unprecedented technologies to entice, engage, and ultimately ensnare youth and teens.” Meta has “profoundly altered the psychological and social realities of a generation of young Americans,” the suit also said.

    The lawsuit also accuses Meta of violating the law by collecting data on users under 13 without parental consent. California Attorney General Rob Bonta said the suit was the result of a multiyear investigation.

    Meta said it was “disappointed” with the legal action.

    “We share the attorneys general’s commitment to providing teens with safe, positive experiences online, and have already introduced over 30 tools to support teens and their families,” a Meta spokesman said in an email. “We’re disappointed that instead of working productively with companies across the industry, the attorneys general have chosen this path.”

    Meta’s stock was flat in late-afternoon trading Tuesday.

    Source link

  • 5 things to know before the stock market opens Monday

    5 things to know before the stock market opens Monday

    Here are the most important news items that investors need to start their trading day:

    1. Bond yield boost

    U.S. stock futures slid Monday morning as the 10-year Treasury note yield again ticked above 5% — a level it hit Thursday for the first time since 2007. Earnings and inflation data will help to shape whether equities bounce back from a down week. The Dow Jones Industrial Average fell 1.6%, the S&P 500 dropped 2.4% and the Nasdaq Composite shed 3.2% last week. A string of major earnings reports are due Tuesday through Thursday. The personal consumption expenditures data out Friday will offer clues about whether the Federal Reserve will hike interest rates again this year. Follow live market updates here.

    2. Tech torrent

    3. Aid arrives in Gaza

    4. Oil consolidation ramps up

    5. More Google scrutiny

    Another country is probing Alphabet’s Google for potential anticompetitive practices. Japan’s Fair Trade Commission said it would investigate potential antitrust violations related to Google’s search engine and its apps and platforms. The move in Japan follows scrutiny over allegations of anticompetitive conduct in the European Union and United States. A Google spokesperson told CNBC that Android is an open platform that ensures “users always have a choice to customize their devices to suit their needs, including the way they browse and search the internet, or download apps.”

    – CNBC’s Lisa Kailai Han, Ruxandra Iordache, Matt Clinch and Arjun Kharpal contributed to this report.

    Follow broader market action like a pro on CNBC Pro.

    Source link

  • CNBC Daily Open: Feeling of uncertainty is hard to shrug off for investors

    CNBC Daily Open: Feeling of uncertainty is hard to shrug off for investors

    Gold bars of different sizes lie in a safe on a table at the precious metals dealer Pro Aurum.

    Sven Hoppe | Picture Alliance | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Markets tumble
    The
    Dow Jones Industrial Average closed nearly 300 points lower on Friday after a surge in the benchmark U.S. 10-year Treasury yield prompted broader concerns about the economy. Asia-Pacific markets started the week lower ahead of inflation readings from across the region, while gold hit a three-month high and gained for the second straight week amid fears of heightening conflict in the Middle East.

    Tesla clocks worst week of the year
    Tesla shares dropped more than 15% last week to close at $211.99 on Friday, marking the worst weekly performance for the stock this year as CEO Elon Musk sounded pessimistic about macroeconomic issues on a recent earnings call. Shares of the electric automaker are still up 96% year-to-date.

    Big earnings week
    Investors will be watching out for an action-packed week of earnings as companies including Microsoft, Meta Platforms, Amazon, Alphabet, General Motors and Ford among others gear up to post their quarterly results. The carmakers will be under the radar this week amid ongoing strikes and contract negotiations with the United Auto Workers union.

    X to launch new subscription tiers
    Owner Elon Musk said X, the social media service formerly known as Twitter, will launch two new tiers of subscriptions for users. One tier will be “lower cost with all features, but no reduction in ads,” while the other is “more expensive, but has no ads,” Musk said. 

    [PRO] The U.S. is trying to tighten the screws on Chinese AI
    The artificial intelligence behind ChatGPT-like products and autonomous driving is driving enormous demand for Nvidia’s chips in China. In the past week, however, analysts cut their Nvidia price targets after news the U.S. plans to ban the sale of more high-end semiconductors to China. Here’s what that means for stocks.

    The bottom line

    Rising Treasury yields, looming interest rate hikes to fight inflation and the heightening conflict in the Middle East drove investors away from risky assets last week.

    The yield on the benchmark 10-year Treasury crossed 5% for the first time since 2007 on Thursday, a level perceived by markets as a potential drag on the U.S. economy as it could translate to higher rates on mortgages, credit cards, auto loans and more.

    A move into safe-haven gold seemed like a sensible bet, given the worsening crisis in the Middle East. Gold was up 2.5% last week, recording its second consecutive weekly rise after adding 5.22% in the prior week.

    Investors are now bracing for a heavy week of earnings as Big Tech companies including Alphabet, Amazon, Meta and Microsoft will take centerstage.

    “We’re hopefully going to see some continued positive strength there on the economy and what they see going forward,” said Ryan Detrick, chief market strategist at Carson Group. “The headlines are scary, for sure. But the fundamentals to us are pretty strong. We’re still seeing earnings season that’s going to come in better than expected.”

    This will arrive after a mixed batch of earnings from behemoths like Tesla and Netflix last week. Tesla marked its biggest weekly decline after Elon Musk shared his pessimistic view on the macroeconomic landscape, while Netflix shares soared as markets cheered its new ad-tier subscription plan.

    Given the huge role advertisers and subscriptions play for the bottom lines of such firms, it was no surprise that Musk turned his attention to improving the usability of social media platform X, formerly known as Twitter.

    Musk said. X is gearing up to launch two new tiers of subscriptions for users, in hopes that it could improve the company’s finances and open new revenue streams. Musk’s sweeping changes across the company, including firing most of its employees and reinstating previously banned accounts, scared advertisers away.

    [ad_2]
    Source link