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Tag: Technology

  • Tim Cook’s Retirement Looms as His $4T Reinvention of Apple Defines His Legacy

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    Tim Cook’s looming retirement caps a 14-year run defined by record growth and disciplined execution. Justin Sullivan/Getty Images

    Apple CEO Tim Cook is poised to retire as early as next year after 14 years at the helm, according to a Financial Times report last week citing multiple anonymous company insiders. Rumblings about Cook’s exit come amid accelerated succession planning by the board and senior executives, the report says.

    Some observers suggest Cook, 65, may not step away entirely, but could transition into a role as chairman of the board. Others, including Bloomberg editor Mark Gurman, believe the leak from unnamed insiders may be an intentional effort to prepare the market for a major leadership shift. Most experts don’t expect any changes before Apple’s next earnings release in January, but say a handoff could occur ahead of its mid-2026 developer conference and product launches.

    What’s clear is that Cook, who succeeded Apple co-founder Steve Jobs in 2011, is nearing the end of his run as Apple’s longest-serving CEO, putting renewed attention on both his legacy and the question of who comes next.

    Tim Cook’s unparalleled legacy

    Apple’s growth under Cook has been staggering. The company’s market capitalization stood at $350 billion when he took over 14 years ago. Today, it’s approaching $4 trillion—more than an elevenfold increase. For comparison, the S&P 500 rose just over 460 percent in the same period.

    Just a year into the job, Cook restructured Apple’s leadership team, dismissing senior vice president of retail John Browett and accepting the resignation of Scott Forstall, then senior vice president of iOS. He redistributed many of their responsibilities to existing leaders in an effort to ease internal tensions.

    Cook has overseen the release of 48 iPhone variants—from the iconic iPhone 4 in 2011 to the bold iPhone 17 Pro this September—while steering the launch of major new product lines including the MacBook Pro, Apple Watch, AirPods and Apple Vision Pro. Under his leadership, Apple also introduced the M-series silicon chips, a multiyear transition that reshaped the performance and energy efficiency of the Mac lineup and reasserted Apple’s dominance in hardware design.

    Beyond devices, Cook supercharged Apple’s services business, expanding the App Store ecosystem and launching new offerings such as Apple Music, Apple TV+, Apple Arcade, Apple Fitness+ and Apple Pay. These services have grown into a multibillion-dollar pillar of Apple’s business, helping the company diversify its revenue streams and build one of the most powerful subscription ecosystems in the world.

    Cook has turned Apple into “the most valuable business in the world while keeping its products central to everyday life,” Natalie Andreas, communication management professor at the University of Texas, told Observer.

    Still, Apple faces criticism for lagging behind rivals in the artificial intelligence arms race, even as its Apple Intelligence features roll out slowly. Many of the capabilities remain in beta. Meanwhile, Bloomberg reports that Apple has shelved plans for a more affordable, lighter Vision Pro headset (codenamed N100) and is instead diverting resources toward building A.I.-powered smart glasses that directly target Meta’s Ray-Ban-style devices.

    “Whoever takes the reins will face big challenges in artificial intelligence, immersive technologies like the Vision Pro, and increasing global regulation,” Andreas said.

    Tim Cook’s successor

    John Ternus, Apple’s senior vice president of hardware engineering and a direct report to Cook, is widely viewed as the leading candidate for the top job.

    Ternus has been at Apple for more than two decades. He joined the product design team in 2001 after working as a mechanical engineer at Virtual Research Systems. In 2013, Ternus was promoted to vice president of hardware engineering under Dan Riccio, overseeing development across the iPad, Mac, and AirPods product lines. By 2020, he had taken on responsibility for the iPhone hardware, and in January 2021, he succeeded Riccio as senior vice president of hardware engineering. In late 2022, his purview expanded further when he was put in charge of Apple Watch hardware.

    Under his leadership, Ternus has played a pivotal role in some of Apple’s most ambitious hardware efforts, including the transition of Mac computers to Apple Silicon. He has also regularly appeared at major Apple events, presenting new iMacs, MacBook Pros, redesigned iPads and other flagship devices.

    Ternus is “one of the few leaders inside the company who blends engineering depth with the same person-first philosophy Apple was built on,” Steven Athwal, founder and CEO of The Big Phone Store, a refurbished tech gadget company, told Observer.

    “He’s charismatic and well-regarded by Apple loyalists and trusted by Cook,” Bloomberg’s Mark Gurman has written.“Apple probably needs more of a technologist than a sales or operations person.”

    Ternus has also begun taking a more public, outward-facing role. He has appeared at high-profile product launches and greeted customers, including during the iPhone 17 launch in London. At 50 years old, he is about the same age Tim Cook was when he became CEO — a symbolic point often raised in succession discussions.

    Tim Cook’s Retirement Looms as His $4T Reinvention of Apple Defines His Legacy

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    Rachel Curry

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  • Larry Summers takes leave from teaching at Harvard after release of Epstein emails

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    Former U.S. Treasury Secretary Larry Summers abruptly went on leave Wednesday from teaching at Harvard University, where he once served as president, over recently released emails showing he maintained a friendly relationship with Jeffrey Epstein, Summers’ spokesperson said.

    Summers had canceled his public commitments amid the fallout of the emails being made public and earlier Wednesday severed ties with OpenAI, the maker of ChatGPT. Harvard had reopened an investigation into connections between him and Epstein, but Summers had said he would continue teaching economics classes at the school.

    That changed Wednesday evening with the news that he will step away from teaching classes as well as his position as director of the Mossavar-Rahmani Center for Business and Government with the Harvard Kennedy School.

    “Mr. Summers has decided it’s in the best interest of the Center for him to go on leave from his role as Director as Harvard undertakes its review,” Summers spokesperson Steven Goldberg said, adding that his co-teachers would finish the classes.

    Summers has not been scheduled to teach next semester, according to Goldberg.

    A Harvard spokesperson confirmed to The Associated Press that Summers had let the university know about his decision. Summers decision to go on leave was first reported by The Harvard Crimson.

    Harvard did not mention Summers by name in its decision to restart an investigation, but the move follows the release of emails showing that he was friendly with Epstein long after the financier pleaded guilty to soliciting prostitution from an underage girl in 2008.

    By Wednesday, the once highly regarded economics expert had been facing increased scrutiny over choosing to stay in the teaching role. Some students even filmed his appearance in shock as he appeared before a class of undergraduates on Tuesday while stressing he thought it was important to continue teaching.

    Massachusetts Sen. Elizabeth Warren, a Democrat, said in a social media post on Wednesday night that Summers “cozied up to the rich and powerful — including a convicted sex offender. He cannot be trusted in positions of influence.”

    Messages appear to seek advice about romantic relationship

    The emails include messages in which Summers appeared to be getting advice from Epstein about pursuing a romantic relationship with someone who viewed him as an “economic mentor.”

    “im a pretty good wing man , no?” Epstein wrote on Nov. 30, 2018.

    The next day, Summers told Epstein he had texted the woman, telling her he “had something brief to say to her.”

    “Am I thanking her or being sorry re my being married. I think the former,” he wrote.

    Summers’ wife, Elisa New, also emailed Epstein multiple times, including a 2015 message in which she thanked him for arranging financial support for a poetry project she directs. The gift he arranged “changed everything for me,” she wrote.

    “It really means a lot to me, all financial help aside, Jeffrey, that you are rooting for me and thinking about me,” she wrote.

    New, an English professor emerita at Harvard, did not respond to an email seeking comment Wednesday.

    An earlier review completed in 2020 found that Epstein visited Harvard’s campus more than 40 times after his 2008 sex-crimes conviction and was given his own office and unfettered access to a research center he helped establish. The professor who provided the office was later barred from starting new research or advising students for at least two years.

    Summers appears before Harvard class

    On Tuesday, Summers appeared before his class at Harvard, where he teaches “The Political Economy of Globalization” to undergraduates with Robert Lawrence, a professor with the Harvard Kennedy School.

    “Some of you will have seen my statement of regret expressing my shame with respect to what I did in communication with Mr. Epstein and that I’ve said that I’m going to step back from public activities for a while. But I think it’s very important to fulfill my teaching obligations,” he said.

    Summers’ remarks were captured on video by several students, but no one appeared to publicly respond to his comments.

    Epstein, who authorities said died by suicide in 2019, was a convicted sex offender infamous for his connections to wealthy and powerful people, making him a fixture of outrage and conspiracy theories about wrongdoing among American elites.

    Summers served as treasury secretary from 1999 to 2001 under President Bill Clinton. He was Harvard’s president for five years from 2001 to 2006. When asked about the emails last week, Summers issued a statement saying he has “great regrets in my life” and that his association with Epstein was a “major error in judgement.”

    Other organizations that confirmed the end of their affiliations with Summers included the Center for American Progress, the Center for Global Development and the Budget Lab at Yale University. Bloomberg TV said Summers’ withdrawal from public commitments included his role as a paid contributor, and the New York Times said it will not renew his contract as a contributing opinion writer.

    ___

    This story has been corrected to show that Summers is a former treasury secretary, not treasurer; to show that Summers’ statement about stepping back from public commitments was issued late Monday, not Tuesday; and to show that the school is known as the Harvard Kennedy School, not Kennedy Harvard School.

    ___

    Associated Press journalist Hallie Golden contributed to this report.

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  • Border Patrol is monitoring US drivers and detaining those with ‘suspicious’ patterns

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    The U.S. Border Patrol is monitoring millions of American drivers nationwide in a secretive program to identify and detain people whose travel patterns it deems suspicious, The Associated Press has found.

    The predictive intelligence program has resulted in people being stopped, searched and in some cases arrested. A network of cameras scans and records vehicle license plate information, and an algorithm flags vehicles deemed suspicious based on where they came from, where they were going and which route they took. Federal agents in turn may then flag local law enforcement.

    Suddenly, drivers find themselves pulled over — often for reasons cited such as speeding, failure to signal, the wrong window tint or even a dangling air freshener blocking the view. They are then aggressively questioned and searched, with no inkling that the roads they drove put them on law enforcement’s radar.

    Once limited to policing the nation’s boundaries, the Border Patrol has built a surveillance system stretching into the country’s interior that can monitor ordinary Americans’ daily actions and connections for anomalies instead of simply targeting wanted suspects. Started about a decade ago to fight illegal border-related activities and the trafficking of both drugs and people, it has expanded over the past five years.

    The Border Patrol has recently grown even more powerful through collaborations with other agencies, drawing information from license plate readers nationwide run by the Drug Enforcement Administration, private companies and, increasingly, local law enforcement programs funded through federal grants. Texas law enforcement agencies have asked Border Patrol to use facial recognition to identify drivers, documents show.

    This active role beyond the borders is part of the quiet transformation of its parent agency, U.S. Customs and Border Protection, into something more akin to a domestic intelligence operation. Under the Trump administration’s heightened immigration enforcement efforts, CBP is now poised to get more than $2.7 billion to build out border surveillance systems such as the license plate reader program by layering in artificial intelligence and other emerging technologies.

    The result is a mass surveillance network with a particularly American focus: cars.

    This investigation, the first to reveal details of how the program works on America’s roads, is based on interviews with eight former government officials with direct knowledge of the program who spoke on the condition of anonymity because they weren’t authorized to speak to the media, as well as dozens of federal, state and local officials, attorneys and privacy experts. The AP also reviewed thousands of pages of court and government documents, state grant and law enforcement data, and arrest reports.

    The Border Patrol has for years hidden details of its license plate reader program, trying to keep any mention of the program out of court documents and police reports, former officials say, even going so far as to propose dropping charges rather than risk revealing any details about the placement and use of their covert license plate readers. Readers are often disguised along highways in traffic safety equipment like drums and barrels.

    The Border Patrol has defined its own criteria for which drivers’ behavior should be deemed suspicious or tied to drug or human trafficking, stopping people for anything from driving on backcountry roads, being in a rental car or making short trips to the border region. The agency’s network of cameras now extends along the southern border in Texas, Arizona and California, and also monitors drivers traveling near the U.S.-Canada border.

    And it reaches far into the interior, impacting residents of big metropolitan areas and people driving to and from large cities such as Chicago and Detroit, as well as from Los Angeles, San Antonio, and Houston to and from the Mexican border region. In one example, AP found the agency has placed at least four cameras in the greater Phoenix area over the years, one of which was more than 120 miles (193 kilometers) from the Mexican frontier, beyond the agency’s usual jurisdiction of 100 miles (161 kilometers) from a land or sea border. The AP also identified several camera locations in metropolitan Detroit, as well as one placed near the Michigan-Indiana border to capture traffic headed towards Chicago or Gary, Indiana, or other nearby destinations.

    Border Patrol’s parent agency, U.S. Customs and Border Protection, said they use license plate readers to help identify threats and disrupt criminal networks and are “governed by a stringent, multi-layered policy framework, as well as federal law and constitutional protections, to ensure the technology is applied responsibly and for clearly defined security purposes.”

    “For national security reasons, we do not detail the specific operational applications,” the agency said. While the U.S. Border Patrol primarily operates within 100 miles of the border, it is legally allowed “to operate anywhere in the United States,” the agency added.

    While collecting license plates from cars on public roads has generally been upheld by courts, some legal scholars see the growth of large digital surveillance networks such as Border Patrol’s as raising constitutional questions. Courts have started to recognize that “large-scale surveillance technology that’s capturing everyone and everywhere at every time” might be unconstitutional under the Fourth Amendment, which protects people from unreasonable searches, said Andrew Ferguson, a law professor at George Washington University.

    Today, predictive surveillance is embedded into America’s roadways. Mass surveillance techniques are also used in a range of other countries, from authoritarian governments such as China to, increasingly, democracies in the U.K. and Europe in the name of national security and public safety.

    “They are collecting mass amounts of information about who people are, where they go, what they do, and who they know … engaging in dragnet surveillance of Americans on the streets, on the highways, in their cities, in their communities,” Nicole Ozer, the executive director of the Center for Constitutional Democracy at UC Law San Francisco, said in response to the AP’s findings. “These surveillance systems do not make communities safer.”

    ‘We did everything right and had nothing to hide’

    In February, Lorenzo Gutierrez Lugo, a driver for a small trucking company that specializes in transporting furniture, clothing and other belongings to families in Mexico, was driving south to the border city of Brownsville, Texas, carrying packages from immigrant communities in South Carolina’s low country.

    Gutierrez Lugo was pulled over by a local police officer in Kingsville, a small Texas city near Corpus Christi that lies about 100 miles (160 kilometers) from the Mexican border. The officer, Richard Beltran, cited the truck’s speed of 50 mph (80 kph) in a 45 mph (72 kph) zone as the reason for the stop.

    But speeding was a pretext: Border Patrol had requested the stop and said the black Dodge pickup with a white trailer could contain contraband, according to police and court records. U.S. Route 77 passes through Kingsville, a route that state and federal authorities scrutinize for trafficking of drugs, money and people.

    Gutierrez Lugo, who through a lawyer declined to comment, was interrogated about the route he drove, based on license plate reader data, per the police report and court records. He consented to a search of his car by Beltran and Border Patrol agents, who eventually arrived to assist.

    They unearthed no contraband. But Beltran arrested Gutierrez Lugo on suspicion of money laundering and engaging in organized criminal activity because he was carrying thousands of dollars in cash — money his supervisor said came directly from customers in local Latino communities, who are accustomed to paying in cash. No criminal charges were ultimately brought against Gutierrez Lugo and an effort by prosecutors to seize the cash, vehicle and trailer as contraband was eventually dropped.

    Luis Barrios owns the trucking company, Paquetería El Guero, that employed the driver. He told AP he hires people with work authorization in the United States and was taken aback by the treatment of his employee and his trailer.

    “We did everything right and had nothing to hide, and that was ultimately what they found,” said Barrios, who estimates he spent $20,000 in legal fees to clear his driver’s name and get the trailer out of impound.

    Border Patrol agents and local police have many names for these kinds of stops: “whisper,” “intel” or “wall” stops. Those stops are meant to conceal — or wall off — that the true reason for the stop is a tip from federal agents sitting miles away, watching data feeds showing who’s traveling on America’s roads and predicting who is “suspicious,” according to documents and people interviewed by the AP.

    In 2022, a man from Houston had his car searched from top to bottom by Texas sheriff’s deputies outside San Antonio after they got a similar tipoff from Border Patrol agents about the driver, Alek Schott.

    Federal agents observed that Schott had made an overnight trip from Houston to Carrizo Springs, Texas, and back, court records show. They knew he stayed overnight in a hotel about 80 miles (129 kilometers) from the U.S.-Mexico border. They knew that in the morning Schott met a female colleague there before they drove together to a business meeting.

    At Border Patrol’s request, Schott was pulled over by Bexar County sheriff’s deputies. The deputies held Schott by the side of the road for more than an hour, searched his car and found nothing.

    “The beautiful thing about the Texas Traffic Code is there’s thousands of things you can stop a vehicle for,” said Joel Babb, the sheriff’s deputy who stopped Schott’s car, in a deposition in a lawsuit Schott filed alleging violations of his constitutional rights.

    According to testimony and documents released as part of Schott’s lawsuit, Babb was on a group chat with federal agents called Northwest Highway. Babb deleted the WhatsApp chat off his phone but Schott’s lawyers were able to recover some of the text messages.

    Through a public records act request, the AP also obtained more than 70 pages of the Northwest Highway group chats from June and July of this year from a Texas county that had at least one sheriff’s deputy active in the chat. The AP was able to associate numerous phone numbers in both sets of documents with Border Patrol agents and Texas law enforcement officials.

    The chat logs show Border Patrol agents and Texas sheriffs deputies trading tips about vehicles’ travel patterns — based on suspicions about little more than someone taking a quick trip to the border region and back. The chats show how thoroughly Texas highways are surveilled by this federal-local partnership and how much detailed information is informally shared.

    In one exchange a law enforcement official included a photo of someone’s driver’s license and told the group the person, who they identified using an abbreviation for someone in the country illegally, was headed westbound. “Need BP?,” responded a group member whose number was labeled “bp Intel.” “Yes sir,” the official answered, and a Border Patrol agent was en route.

    Border Patrol agents and local law enforcement shared information about U.S. citizens’ social media profiles and home addresses with each other after stopping them on the road. Chats show Border Patrol was also able to determine whether vehicles were rentals and whether drivers worked for rideshare services.

    In Schott’s case, Babb testified that federal agents “actually watch travel patterns on the highway” through license plate scans and other surveillance technologies. He added: “I just know that they have a lot of toys over there on the federal side.”

    After finding nothing in Schott’s car, Babb said “nine times out of 10, this is what happens,” a phrase Schott’s lawyers claimed in court filings shows the sheriff’s department finds nothing suspicious in most of its searches. Babb did not respond to multiple requests for comment from AP.

    The Bexar County sheriff’s office declined to comment due to pending litigation and referred all questions about the Schott case to the county’s district attorney. The district attorney did not respond to a request for comment.

    The case is pending in federal court in Texas. Schott said in an interview with the AP: “I didn’t know it was illegal to drive in Texas.”

    ‘Patterns of life’ and license plates

    Today, the deserts, forests and mountains of the nation’s land borders are dotted with checkpoints and increasingly, surveillance towers, Predator drones, thermal cameras and license plate readers, both covert and overt.

    Border Patrol’s parent agency got authorization to run a domestic license plate reader program in 2017, according to a Department of Homeland Security policy document. At the time, the agency said that it might use hidden license plate readers ”for a set period of time while CBP is conducting an investigation of an area of interest or smuggling route. Once the investigation is complete, or the illicit activity has stopped in that area, the covert cameras are removed,” the document states.

    But that’s not how the program has operated in practice, according to interviews, police reports and court documents. License plate readers have become a major — and in some places permanent — fixture of the border region.

    In a budget request to Congress in fiscal year 2024, CBP said that its Conveyance Monitoring and Predictive Recognition System, or CMPRS, “collects license plate images and matches the processed images against established hot lists to assist … in identifying travel patterns indicative of illegal border related activities.” Several new developer jobs have been posted seeking applicants to help modernize its license plate surveillance system in recent months. Numerous Border Patrol sectors now have special intelligence units that can analyze license plate reader data, and tie commercial license plate readers to its national network, according to documents and interviews.

    Border Patrol worked with other law enforcement agencies in Southern California about a decade ago to develop pattern recognition, said a former CBP official who spoke on the condition of anonymity for fear of reprisal. Over time, the agency learned to develop what it calls “patterns of life” of vehicle movements by sifting through the license plate data and determining “abnormal” routes, evaluating if drivers were purposely avoiding official checkpoints. Some cameras can take photos of a vehicle’s plates as well as its driver’s face, the official said.

    Another former Border Patrol official compared it to a more technologically sophisticated version of what agents used to do in the field — develop hunches based on experience about which vehicles or routes smugglers might use, find a legal basis for the stop like speeding and pull drivers over for questioning.

    The cameras take pictures of vehicle license plates. Then, the photos are “read” by the system, which automatically detects and distills the images into numbers and letters, tied to a geographic location, former CBP officials said. The AP could not determine how precisely the system’s algorithm defines a quick turnaround or an odd route. Over time, the agency has amassed databases replete with images of license plates, and the system’s algorithm can flag an unusual “pattern of life” for human inspection.

    The Border Patrol also has access to a nationwide network of plate readers run by the Drug Enforcement Administration, documents show, and was authorized in 2020 to access license plate reader systems sold by private companies. In documents obtained by the AP, a Border Patrol official boasted about being able to see that a vehicle that had traveled to “Dallas, Little Rock, Arkansas and Atlanta” before ending up south of San Antonio.

    Documents show that Border Patrol or CBP has in the past had access to data from at least three private sector vendors: Rekor, Vigilant Solutions and Flock Safety.

    Through Flock alone, Border Patrol for a time had access to at least 1,600 license plate readers across 22 states, and some counties have reported looking up license plates on behalf of CBP even in states like California and Illinois that ban sharing data with federal immigration authorities, according to an AP analysis of police disclosures. A Flock spokesperson told AP the company “for now” had paused its pilot programs with CBP and a separate DHS agency, Homeland Security Investigations, and declined to discuss the type or volume of data shared with either federal agency, other than to say agencies could search for vehicles wanted in conjunction with a crime. No agencies currently list Border Patrol as receiving Flock data. Vigilant and Rekor did not respond to requests for comment.

    Where Border Patrol places its cameras is a closely guarded secret. However, through public records requests, the AP obtained dozens of permits the agency filed with Arizona and Michigan for permission to place cameras on state-owned land. The permits show the agency frequently disguises its cameras by concealing them in traffic equipment like the yellow and orange barrels that dot American roadways, or by labeling them as jobsite equipment. An AP photographer in October visited the locations identified in more than two dozen permit applications in Arizona, finding that most of the Border Patrol’s hidden equipment remains in place today. Spokespeople for the Arizona and Michigan departments of transportation said they approve permits based on whether they follow state and federal rules and are not privy to details on how license plate readers are used.

    Texas, California, and other border states did not provide documents in response to the AP’s public records requests.

    CBP’s attorneys and personnel instructed local cities and counties in both Arizona and Texas to withhold records from the AP that might have revealed details about the program’s operations, even though they were requested under state open records laws, according to emails and legal briefs filed with state governments. For example, CBP claimed records requested by the AP in Texas “would permit private citizens to anticipate weaknesses in a police department, avoid detection, jeopardize officer safety, and generally undermine police efforts.” Michigan redacted the exact locations of Border Patrol equipment, but the AP was able to determine general locations from the name of the county.

    One page of the group chats obtained by the AP shows that a participant enabled WhatsApp’s disappearing messages feature to ensure communications were deleted automatically.

    Transformation of CBP into intelligence agency

    The Border Patrol’s license plate reader program is just one part of a steady transformation of its parent agency, CBP, in the years since 9/11 into an intelligence operation whose reach extends far beyond borders, according to interviews with former officials.

    CBP has quietly amassed access to far more information from ports of entry, airports and intelligence centers than other local, state and federal law enforcement agencies. And like a domestic spy agency, CBP has mostly hidden its role in the dissemination of intelligence on purely domestic travel through its use of whisper stops.

    Border Patrol has also extended the reach of its license plate surveillance program by paying for local law enforcement to run plate readers on their behalf.

    A federal grant program called Operation Stonegarden, which has existed in some form for nearly two decades, has handed out hundreds of millions of dollars to buy automated license plate readers, camera-equipped drones and other surveillance gear for local police and sheriffs agencies. Stonegarden grant funds also pay for local law enforcement overtime, which deputizes local officers to work on Border Patrol enforcement priorities. Under President Donald Trump, the Republican-led Congress this year allocated $450 million for Stonegarden to be handed out over the next four fiscal years. In the previous four fiscal years, the program gave out $342 million.

    In Cochise County, Arizona, Sheriff Mark Dannels said Stonegarden grants, which have been used to buy plate readers and pay for overtime, have let his deputies merge their mission with Border Patrol’s to prioritize border security.

    “If we’re sharing our authorities, we can put some consequences behind, or deterrence behind, ‘Don’t come here,’” he said.

    In 2021, the Ward County, Texas, sheriff sought grant funding from DHS to buy a “covert, mobile, License Plate Reader” to pipe data to Border Patrol’s Big Bend Sector Intelligence Unit. The sheriff’s department did not respond to a request for comment.

    Other documents AP obtained show that Border Patrol connects locally owned and operated license plate readers bought through Stonegarden grants to its computer systems, vastly increasing the federal agency’s surveillance network.

    How many people have been caught up in the Border Patrol’s dragnet is unknown. One former Border Patrol agent who worked on the license plate reader pattern detection program in California said the program had an 85% success rate of discovering contraband once he learned to identify patterns that looked suspicious. But another former official in a different Border Patrol sector said he was unaware of successful interdictions based solely on license plate patterns.

    In Trump’s second term, Border Patrol has extended its reach and power as border crossings have slowed to historic lows and freed up agents for operations in the heartland. Border Patrol Sector Chief Gregory Bovino, for example, was tapped to direct hundreds of agents from multiple DHS agencies in the administration’s immigration sweeps across Los Angeles, more than 150 miles (241 kilometers) from his office in El Centro, California. Bovino later was elevated to lead the aggressive immigration crackdown in Chicago. Numerous Border Patrol officials have also been tapped to replace ICE leadership.

    The result has been more encounters between the agency and the general public than ever before.

    “We took Alek’s case because it was a clear-cut example of an unconstitutional traffic stop,” said Christie Hebert, who works at the nonprofit public interest law firm Institute for Justice and represents Schott. ”What we found was something much larger — a system of mass surveillance that threatens people’s freedom of movement.”

    AP found numerous other examples similar to what Schott and the delivery driver experienced in reviewing court records in border communities and along known smuggling routes in Texas and California. Several police reports and court records the AP examined cite “suspicious” travel patterns or vague tipoffs from the Border Patrol or other unnamed law enforcement agencies. In another federal court document filed in California, a Border Patrol agent acknowledged “conducting targeted analysis on vehicles exhibiting suspicious travel patterns” as the reason he singled out a Nissan Altima traveling near San Diego.

    In cases reviewed by the AP, local law enforcement sometimes tried to conceal the role the Border Patrol plays in passing along intelligence. Babb, the deputy who stopped Schott, testified he typically uses the phrase “subsequent to prior knowledge” when describing whisper stops in his police reports to acknowledge that the tip came from another law enforcement agency without revealing too much in written documents he writes memorializing motorist encounters.

    Once they pull over a vehicle deemed suspicious, officers often aggressively question drivers about their travels, their belongings, their jobs, how they know the passengers in the car, and much more, police records and bodyworn camera footage obtained by the AP show. One Texas officer demanded details from a man about where he met his current sexual partner. Often drivers, such as the one working for the South Carolina moving company, were arrested on suspicion of money laundering merely for carrying a few thousand dollars worth of cash, with no apparent connection to illegal activity. Prosecutors filed lawsuits to try to seize money or vehicles on the suspicion they were linked to trafficking.

    Schott warns that for every success story touted by Border Patrol, there are far more innocent people who don’t realize they’ve become ensnared in a technology-driven enforcement operation.

    “I assume for every one person like me, who’s actually standing up, there’s a thousand people who just don’t have the means or the time or, you know, they just leave frustrated and angry. They don’t have the ability to move forward and hold anyone accountable,” Schott said. “I think there’s thousands of people getting treated this way.”

    —-

    Tau reported from Washington, Laredo, San Antonio, Kingsville and Victoria, Texas. Burke reported from San Francisco. AP writers Aaron Kessler in Washington, Jim Vertuno in San Antonio, AP video producer Serginho Ro​​osblad in Bisbee, Arizona, and AP photographers Ross D. Franklin in Phoenix and David Goldman in Houston contributed reporting. Former AP writer Ismael M. Belkoura in Washington also contributed.

    —-

    Contact AP’s global investigative team at Investigative@ap.org or https://www.ap.org/tips/.

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  • Warner Music and AI startup Udio settle copyright battle and ink license deal

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    LONDON — Warner Music Group resolved its copyright battle with Udio and signed a deal to work with the AI music startup on a new song creation service that will allow users to remix tunes by established artists.

    It’s the second agreement between a major record label and Udio, a chatbot-style song generation tool.

    The deals underline how AI is shaking up the music industry. AI-generated music has been flooding streaming services amid the rise of song generators that instantly spit out new tunes based on prompts typed in by users without any musical knowledge. The synthetic music boom has also resulted in a wave of AI singers and bands that have climbed the charts after racking up millions of streams, even though they don’t exist in real life.

    Warner, which represents artists including Ed Sheeran and Dua Lipa, has resolved its copyright infringement litigation against Udio, the two companies said. They’ve also established ”a clear framework” for developing Udio’s licensed AI music creation service that’s set to launch in 2026.

    They provided no financial details on their agreement, which includes Warner’s recording and publishing businesses, but it will create “new revenue streams for artists and songwriters, while ensuring their work remains protected.”

    It’s similar to an agreement that Universal Music Group signed last month with Udio, which triggered a huge backlash because Udio stopped users from downloading the songs they created.

    Udio said it will remain a “closed-system” as it prepares to launch the new service next year. If artists and songwriters choose to let their works be used, they’ll be credited and paid when users remix or cover their songs, or make new tunes with their voices and compositions, the companies said.

    Sony Music Entertainment remains the only major record company that hasn’t yet signed an AI licensing deal with Udio or Suno, after filing suit against them last year over copyright alongside Universal and Warner. Suno hasn’t yet signed a deal with any major label.

    Also Wednesday, Warner unveiled a deal to work with another artificial intelligence company, Stability AI, on developing “professional-grade tools” for musicians, songwriters and producers.

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  • Advocacy groups urge parents to avoid AI toys this holiday season

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    They’re cute, even cuddly, and promise learning and companionship — but artificial intelligence toys are not safe for kids, according to children’s and consumer advocacy groups urging parents not to buy them during the holiday season.

    These toys, marketed to kids as young as 2 years old, are generally powered by AI models that have already been shown to harm children and teenagers, such as OpenAI’s ChatGPT, according to an advisory published Thursday by the children’s advocacy group Fairplay and signed by more than 150 organizations and individual experts such as child psychiatrists and educators.

    “The serious harms that AI chatbots have inflicted on children are well-documented, including fostering obsessive use, having explicit sexual conversations, and encouraging unsafe behaviors, violence against others, and self-harm,” Fairplay said.

    AI toys, made by companies such as Curio Interactive and Keyi Technologies, are often marketed as educational, but Fairplay says they can displace important creative and learning activities. They promise friendship but also disrupt children’s relationships and resilience, the group said.

    “What’s different about young children is that their brains are being wired for the first time and developmentally it is natural for them to be trustful, for them to seek relationships with kind and friendly characters,” said Rachel Franz, director of Fairplay’s Young Children Thrive Offline Program. Because of this, she added, the amount of trust young children are putting in these toys can exacerbate the harms seen with older children.

    Fairplay, a 25-year-old organization formerly known as the Campaign for a Commercial-Free Childhood, has been warning about AI toys for more than 10 years. They just weren’t as advanced as they are today. A decade ago, during an emerging fad of internet-connected toys and AI speech recognition, the group helped lead a backlash against Mattel’s talking Hello Barbie doll that it said was recording and analyzing children’s conversations.

    “Everything has been released with no regulation and no research, so it gives us extra pause when all of a sudden we see more and more manufacturers, including Mattel, who recently partnered with OpenAI, potentially putting out these products,” Franz said.

    It’s the second big seasonal warning against AI toys since consumer advocates at U.S. PIRG last week called out the trend in its annual “ Trouble in Toyland ” report that typically looks at a range of product hazards, such as high-powered magnets and button-sized batteries that young children can swallow. This year, the organization tested four toys that use AI chatbots.

    “We found some of these toys will talk in-depth about sexually explicit topics, will offer advice on where a child can find matches or knives, act dismayed when you say you have to leave, and have limited or no parental controls,” the report said.

    Dr. Dana Suskind, a pediatric surgeon and social scientist who studies early brain development, said young children don’t have the conceptual tools to understand what an AI companion is. While kids have always bonded with toys through imaginative play, when they do this they use their imagination to create both sides of a pretend conversation, “practicing creativity, language, and problem-solving,” she said.

    “An AI toy collapses that work. It answers instantly, smoothly, and often better than a human would. We don’t yet know the developmental consequences of outsourcing that imaginative labor to an artificial agent—but it’s very plausible that it undercuts the kind of creativity and executive function that traditional pretend play builds,” Suskind said.

    California-based Curio Interactive makes stuffed toys, like Gabbo and rocket-shaped Grok, that have been promoted by the pop singer Grimes.

    Curio said it has “meticulously designed” guardrails to protect children and the company encourages parents to “monitor conversations, track insights, and choose the controls that work best for their family.”

    “After reviewing the U.S. PIRG Education Fund’s findings, we are actively working with our team to address any concerns, while continuously overseeing content and interactions to ensure a safe and enjoyable experience for children.”

    Another company, Miko, said it uses its own conversational AI model rather than relying on general large language model systems such as ChatGPT in order to make its product — an interactive AI robot — safe for children.

    “We are always expanding our internal testing, strengthening our filters, and introducing new capabilities that detect and block sensitive or unexpected topics,” said CEO Sneh Vaswani. “These new features complement our existing controls that allow parents and caregivers to identify specific topics they’d like to restrict from conversation. We will continue to invest in setting the highest standards for safe, secure and responsible AI integration for Miko products.”

    Miko’s products are sold by major retailers such as Walmart and Costco and have been promoted by the families of social media “kidfluencers” whose YouTube videos have millions of views. On its website, it markets its robots as “Artificial Intelligence. Genuine friendship.”

    Ritvik Sharma, the company’s senior vice president of growth, said Miko actually “encourages kids to interact more with their friends, to interact more with the peers, with the family members etc. It’s not made for them to feel attached to the device only.”

    Still, Suskind and children’s advocates say analog toys are a better bet for the holidays.

    “Kids need lots of real human interaction. Play should support that, not take its place. The biggest thing to consider isn’t only what the toy does; it’s what it replaces. A simple block set or a teddy bear that doesn’t talk back forces a child to invent stories, experiment, and work through problems. AI toys often do that thinking for them,” she said. “Here’s the brutal irony: when parents ask me how to prepare their child for an AI world, unlimited AI access is actually the worst preparation possible.”

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  • One Tech Tip: Do’s and don’ts of using AI to help with schoolwork

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    The rapid rise of ChatGPT and other generative AI systems has disrupted education, transforming how students learn and study.

    Students everywhere have turned to chatbots to help with their homework, but artificial intelligence’s capabilities have blurred the lines about what it should — and shouldn’t — be used for.

    The technology’s widespread adoption in many other parts of life also adds to the confusion about what constitutes academic dishonesty.

    Here are some do’s and don’ts on using AI for schoolwork:

    Chatbots are so good at answering questions with detailed written responses that it’s tempting to just take their work and pass it off as your own.

    But in case it isn’t already obvious, AI should not be used as a substitute for putting in the work. And it can’t replace our ability to think critically.

    You wouldn’t copy and paste information from a textbook or someone else’s essay and pass it off as your own. The same principle applies to chatbot replies.

    “AI can help you understand concepts or generate ideas, but it should never replace your own thinking and effort,” the University of Chicago says in its guidance on using generative AI. “Always produce original work, and use AI tools for guidance and clarity, not for doing the work for you.”

    So don’t shy away from putting pen to paper — or your fingers to the keyboard — to do your own writing.

    “If you use an AI chatbot to write for you — whether explanations, summaries, topic ideas, or even initial outlines — you will learn less and perform more poorly on subsequent exams and attempts to use that knowledge,” Yale University’s Poorvu Center for Teaching and Learning says.

    Experts say AI shines when it’s used like a tutor or a study buddy. So try using a chatbot to explain difficult concepts or brainstorm ideas, such as essay topics.

    California high school English teacher Casey Cuny advises his students to use ChatGPT to quiz themselves ahead of tests.

    He tells them to upload class notes, study guides and any other materials used in class, such as slideshows, to the chatbot, and then tell it which textbook and chapter the test will focus on.

    Then, students should prompt the chatbot to: “Quiz me one question at a time based on all the material cited, and after that create a teaching plan for everything I got wrong.”

    Cuny posts AI guidance in the form of a traffic light on a classroom screen. Green-lighted uses include brainstorming, asking for feedback on a presentation or doing research. Red lighted, or prohibited AI use: Asking an AI tool to write a thesis statement, a rough draft or revise an essay. A yellow light is when a student is unsure if AI use is allowed, in which case he tells them to come and ask him.

    Or try using ChatGPT’s voice dictation function, said Sohan Choudhury, CEO of Flint, an AI-powered education platform.

    “I’ll just brain dump exactly what I get, what I don’t get” about a subject, he said. “I can go on a ramble for five minutes about exactly what I do and don’t understand about a topic. I can throw random analogies at it, and I know it’s going to be able to give me something back to me tailored based on that.”

    As AI has shaken up the academic world, educators have been forced to set out their policies on the technology.

    In the U.S., about two dozen states have state-level AI guidance for schools, but it’s unevenly applied.

    It’s worth checking what your school, college or university says about AI. Some might have a broad institutionwide policy.

    The University of Toronto’s stance is that “students are not allowed to use generative AI in a course unless the instructor explicitly permits it” and students should check course descriptions for do’s and don’ts.

    Many others don’t have a blanket rule.

    The State University of New York at Buffalo “has no universal policy,” according to its online guidance for instructors. “Instructors have the academic freedom to determine what tools students can and cannot use in pursuit of meeting course learning objectives. This includes artificial intelligence tools such as ChatGPT.”

    AI is not the educational bogeyman it used to be.

    There’s growing understanding that AI is here to stay and the next generation of workers will have to learn how to use the technology, which has the potential to disrupt many industries and occupations.

    So students shouldn’t shy away from discussing its use with teachers, because transparency prevents misunderstandings, said Choudhury.

    “Two years ago, many teachers were just blanket against it. Like, don’t bring AI up in this class at all, period, end of story,” he said. But three years after ChatGPT’s debut, “many teachers understand that the kids are using it. So they’re much more open to having a conversation as opposed to setting a blanket policy.”

    Teachers say they’re aware that students are wary of asking if AI use is allowed for fear they’ll be flagged as cheaters. But clarity is key because it’s so easy to cross a line without knowing it, says Rebekah Fitzsimmons, chair of the AI faculty advising committee at Carnegie Mellon University’s Heinz College of Information Systems and Public Policy.

    “Often, students don’t realize when they’re crossing a line between a tool that is helping them fix content that they’ve created and when it is generating content for them,” says Fitzsimmons, who helped draft detailed new guidelines for students and faculty that strive to create clarity.

    The University of Chicago says students should cite AI if it was used to come up with ideas, summarize texts, or help with drafting a paper.

    “Acknowledge this in your work when appropriate,” the university says. “Just as you would cite a book or a website, giving credit to AI where applicable helps maintain transparency.”

    Educators want students to use AI in a way that’s consistent with their school’s values and principles.

    The University of Florida says students should familiarize themselves with the school’s honor code and academic integrity policies “to ensure your use of AI aligns with ethical standards.”

    Oxford University says AI tools must be used “responsibly and ethically” and in line with its academic standards.

    “You should always use AI tools with integrity, honesty, and transparency, and maintain a critical approach to using any output generated by these tools,” it says.

    ____

    Is there a tech topic that you think needs explaining? Write to us at onetechtip@ap.org with your suggestions for future editions of One Tech Tip.

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  • Advocacy groups urge parents to avoid AI toys this holiday season

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    They’re cute, even cuddly, and promise learning and companionship — but artificial intelligence toys are not safe for kids, according to children’s and consumer advocacy groups urging parents not to buy them during the holiday season.

    These toys, marketed to kids as young as 2 years old, are generally powered by AI models that have already been shown to harm children and teenagers, such as OpenAI’s ChatGPT, according to an advisory published Thursday by the children’s advocacy group Fairplay and signed by more than 150 organizations and individual experts such as child psychiatrists and educators.

    “The serious harms that AI chatbots have inflicted on children are well-documented, including fostering obsessive use, having explicit sexual conversations, and encouraging unsafe behaviors, violence against others, and self-harm,” Fairplay said.

    AI toys, made by companies such as Curio Interactive and Keyi Technologies, are often marketed as educational, but Fairplay says they can displace important creative and learning activities. They promise friendship but also disrupt children’s relationships and resilience, the group said.

    “What’s different about young children is that their brains are being wired for the first time and developmentally it is natural that for them to be trustful, for them to seek relationships with kind and friendly characters,” said Rachel Franz, director of Fairplay’s Young Children Thrive Offline Program. Because of this, she added, the amount of trust young children are putting in these toys can exacerbate the harms seen with older children.

    Fairplay, a 25-year-old organization formerly known as the Campaign for a Commercial-Free Childhood, has been warning about AI toys for more than 10 years. They just weren’t as advanced as they are today. A decade ago, during an emerging fad of internet-connected toys and AI speech recognition, the group helped lead a backlash against Mattel’s talking Hello Barbie doll that it said was recording and analyzing children’s conversations.

    “Everything has been released with no regulation and no research, so it gives us extra pause when all of a sudden we see more and more manufacturers, including Mattel, who recently partnered with OpenAI, potentially putting out these products,” Franz said.

    It’s the second big seasonal warning against AI toys since consumer advocates at U.S. PIRG last week called out the trend in its annual “ Trouble in Toyland ” report that typically looks at a range of product hazards, such as high-powered magnets and button-sized batteries that young children can swallow. This year, the organization tested four toys that use AI chatbots.

    “We found some of these toys will talk in-depth about sexually explicit topics, will offer advice on where a child can find matches or knives, act dismayed when you say you have to leave, and have limited or no parental controls,” the report said.

    Dr. Dana Suskind, a pediatric surgeon and social scientist who studies early brain development, said young children don’t have the conceptual tools to understand what an AI companion is. While kids have always bonded with toys through imaginative play, when they do this they use their imagination to create both sides of a pretend conversation, “practicing creativity, language, and problem-solving,” she said.

    “An AI toy collapses that work. It answers instantly, smoothly, and often better than a human would. We don’t yet know the developmental consequences of outsourcing that imaginative labor to an artificial agent—but it’s very plausible that it undercuts the kind of creativity and executive function that traditional pretend play builds,” Suskind said.

    California-based Curio Interactive makes stuffed toys, like rocket-shaped Gabbo, that have been promoted by the pop singer Grimes.

    Curio said it has “meticulously designed” guardrails to protect children and the company encourages parents to “monitor conversations, track insights, and choose the controls that work best for their family.”

    “After reviewing the U.S. PIRG Education Fund’s findings, we are actively working with our team to address any concerns, while continuously overseeing content and interactions to ensure a safe and enjoyable experience for children.”

    Another company, Miko, said it uses its own conversational AI model rather than relying on general large language model systems such as ChatGPT in order to make their product — an interactive AI robot — safe for children.

    “We are always expanding our internal testing, strengthening our filters, and introducing new capabilities that detect and block sensitive or unexpected topics,” said CEO Sneh Vaswani. “These new features complement our existing controls that allow parents and caregivers to identify specific topics they’d like to restrict from conversation. We will continue to invest in setting the highest standards for safe, secure and responsible AI integration for Miko products.”

    Miko’s products have been promoted by the families of social media “kidfluencers” whose YouTube videos have millions of views. On its website, it markets its robots as “Artificial Intelligence. Genuine friendship.”

    Ritvik Sharma, the company’s senior vice president of growth, said Miko actually “encourages kids to interact more with their friends, to interact more with the peers, with the family members etc. It’s not made for them to feel attached to the device only.”

    Still, Suskind and children’s advocates say analog toys are a better bet for the holidays.

    “Kids need lots of real human interaction. Play should support that, not take its place. The biggest thing to consider isn’t only what the toy does; it’s what it replaces. A simple block set or a teddy bear that doesn’t talk back forces a child to invent stories, experiment, and work through problems. AI toys often do that thinking for them,” she said. “Here’s the brutal irony: when parents ask me how to prepare their child for an AI world, unlimited AI access is actually the worst preparation possible.”

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  • Russian hacking suspect wanted by the FBI arrested on Thai resort island

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    BANGKOK — Police have arrested a suspected Russian hacker on the Thai resort island of Phuket who was wanted by the FBI on allegations he was behind cyberattacks on U.S. and European government agencies, officials said.

    The 35-year-old, who entered Thailand on Oct. 30 at Phuket Airport, was taken into custody earlier this month at his hotel and is now being held pending possible extradition, Thai police said.

    The suspect’s name was not released but Russian state-run news agency Russia Today identified him as Denis Obrezko, a native of Stavropol. It reported that his relatives confirmed the Nov. 6 arrest and were planning to fight his extradition to the United States.

    In an e-mail Thursday, the U.S. Department of Justice refused to comment on the possible extradition or give other details. The U.S. State Department and American officials in Thailand also refused to comment.

    The Russian Foreign Ministry and the Russian embassy in Thailand also did not respond to requests for comment, but Russia’s consul general in Phuket, Yegor Ivanov, told Russian state news agency Tass that the consulate had “received notification of the arrest of a Russian citizen on charges of committing an information technology crime.”

    “He was arrested on November 6 and transferred to Bangkok that same day,” Ivanov said, without providing further details.

    Ilya Ilyin, head of the consular section of the Russian embassy in Thailand, told Tass on Monday that Russian diplomats had visited the suspect in prison in Bangkok.

    “Embassy staff conducted a consular visit to the Russian citizen detained at the request of the United States,” Ilyin said, adding that the embassy was arranging for him to be able to meet with his relatives.

    Thailand’s Cyber Crime Investigation Bureau said in a Nov. 12 statement that it was an FBI tip that the “world-class hacker” was traveling to Thailand that led to his arrest in Phuket on an international warrant.

    In the raid on his hotel, police seized laptop computers, mobile phones, and digital wallets, the police’s statement said, adding that FBI officials were on hand for the arrest.

    Several media outlets reported a second Russian hacking suspect wanted by the FBI, who has ties to Russian military intelligence, had been arrested in Phuket the following day, but Thai police said there had only been one arrest.

    The formal request for the suspect’s extradition has been made but it was not clear how long the process would take.

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  • NASA unveils close-up pictures of the comet popping by from another star

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    CAPE CANAVERAL, Fla. — NASA unveiled close-up pictures on Wednesday of the interstellar comet that’s making a quick one-and-done tour of the solar system.

    Discovered over the summer, the comet known as 3I/Atlas is only the third confirmed object to visit our corner of the cosmos from another star. It zipped harmlessly past Mars last month.

    Three NASA spacecraft on and near the red planet zoomed in on the comet as it passed just 18 million miles (29 million kilometers) away, revealing a fuzzy white blob. The European Space Agency’s two satellites around Mars also made observations.

    Other NASA spacecraft will remain on the lookout in the weeks ahead, including the Webb Space Telescope. At the same time, astronomers are aiming their ground telescopes at the approaching comet, which is about 190 million miles (307 million kilometers) from Earth. The Virtual Telescope Project’s Gianluca Masi zoomed in Wednesday from Italy.

    The comet is visible from Earth in the predawn sky by using binoculars or a telescope.

    “Everyone that is in control of a telescope wants to look at it because it’s a fascinating and rare opportunity,” said NASA’s acting astrophysics director, Shawn Domagal-Goldman.

    The closest the comet will come to Earth is 167 million miles (269 million kilometers) in mid-December. Then it will hightail it back into interstellar space, never to return.

    ESA’s Juice spacecraft, bound for Jupiter, has been training its cameras and scientific instruments on the comet all month, particularly after it made its closest pass to the sun. But scientists won’t get any of these observations back until February because Juice’s main antenna is serving as a heat shield while it’s near the sun, limiting the flow of data.

    Named for the telescope in Chile that first spotted it, the comet is believed to be anywhere from 1,444 feet (440 meters) across to 3.5 miles (5.6 kilometers) across. Observations indicate that the exceptionally fast-moving comet may have originated in a star system older than our own — “which gives me goose bumps to think about,” said NASA scientist Tom Statler.

    “That means that 3I/Atlas is not just a window into another solar system, it’s a window into the deep past and so deep in the past that it predates even the formation of our Earth and our sun,” Statler told reporters.

    NASA officials were quick to dispel rumors that this friendly solar system visitor, as they called it, might be an alien ship of some sort. They said that because of the federal government shutdown, they weren’t able to respond to all the theories cropping up in recent weeks.

    The space agency is always on the hunt for life beyond Earth, “but 3I/Atlas is a comet,” said NASA’s associate administrator, Amit Kshatriya.

    ___

    The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

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  • Nvidia’s earnings attest to its leadership in the AI race. By the numbers

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    Nvidia reported more eye-catching numbers for its fiscal third quarter Wednesday, with net income jumping 65% and revenue increasing 62% from a year earlier.

    Last month, Nvidia became the first public company to reach a market capitalization of $5 trillion.

    The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.

    Nvidia carved out an early lead in tailoring its chipsets known as graphics processing units, or GPUs, from use in powering video games to helping to train powerful AI systems, like the technology behind ChatGPT and image generators. Demand skyrocketed as more people began using AI chatbots. Tech companies scrambled for more chips to build and run them.

    Nvidia’s journey to be one of the world’s most prominent companies has produced some extraordinary numbers. Here’s a look.

    $31.9 billion

    Nvidia’s net income for the third quarter, up from $19.3 billion a year ago.

    38.9%

    Nvidia stock’s gain for the year, as of the close of trading Wednesday. That follows gains of 171% in 2024 and 239% in 2023.

    $4.53 trillion

    Nvidia’s total market capitalization as of the close of trading Wednesday, tops in the S&P 500.

    Apple at $3.98 trillion and Microsoft at $3.62 trillion were next among the most valuable companies in the S&P 500. In all, nine companies in the index have market cap’s above $1 trillion.

    $4.28 trillion

    The gross domestic product of Japan, the world’s fourth largest economy, according to the International Monetary Fund.

    79

    The number of trading days it took for Nvidia’s market cap to grow from $4 trillion to $5 trillion earlier this year. The market cap had jumped from $3 trillion on May 13, to $4 trillion on July 9 (41 trading days), although Nvidia had crossed and fallen back below the $3 trillion threshold a number of times between June 2024 and May 2025 before making the run to $4 trillion.

    19.8%

    The company’s contribution to the gain in the S&:P 500 this year as of Oct. 31, according to S&P Dow Jones Indices.

    $162 billion

    The net worth of Nvidia CEO Jensen Huang, according to Forbes, putting him eighth on its Real-Time Billionaires List. Elon Musk is No. 1 at $467.7 billion.

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  • Meta prevails in historic FTC antitrust case, won’t have to break off WhatsApp, Instagram

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    SAN FRANCISCO (AP) — Meta has prevailed over an existential challenge to its business that could have forced the tech giant to spin off Instagram and WhatsApp after a judge ruled that the company does not hold a monopoly in social networking.

    U.S. District Judge James Boasberg issued his ruling Tuesday after the historic antitrust trial wrapped up in late May. His decision runs in sharp contrast to two separate rulings that branded Google an illegal monopoly in both search and online advertising, dealing regulatory blows to the tech industry that for years enjoyed nearly unbridled growth.

    The Federal Trade Commission “continues to insist that Meta competes with the same old rivals it has for the last decade, that the company holds a monopoly among that small set, and that it maintained that monopoly through anticompetitive acquisitions,” Boasberg wrote in his ruling. “Whether or not Meta enjoyed monopoly power in the past, though, the agency must show that it continues to hold such power now. The Court’s verdict today determines that the FTC has not done so.”

    The federal agency had argued that Meta maintained a monopoly by pursuing an expression CEO Mark Zuckerberg made in 2008: “‘It is better to buy than compete.’ True to that maxim, Facebook has systematically tracked potential rivals and acquired companies that it viewed as serious competitive threats.”

    During his April testimony, Zuckerberg pushed back against claims that Facebook bought Instagram to neutralize a threat. In his line of questioning, FTC attorney Daniel Matheson repeatedly brought up emails — many of them more than a decade old — written by Zuckerberg and his associates before and after the acquisition of Instagram.

    While acknowledging the documents, Zuckerberg has often sought to downplay the contents, saying he wrote the emails early in the acquisition process and that the notes did not fully capture the scope of his interest in the company. But the case was not about the acquisitions of Instagram and WhatsApp more than a decade ago, which the FTC approved at the time, but about whether Meta holds a monopoly now. Prosecutors, Boasberg wrote in the ruling, could only win if they proved “current or imminent legal violation.”

    The FTC’s complaint said Facebook also enacted policies designed to make it difficult for smaller rivals to enter the market and “neutralize perceived competitive threats,” just as the world shifted its attention to mobile devices from desktop computers.

    Meta said Tuesday’s decision “recognizes that Meta faces fierce competition.”

    “Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America,” said Jennifer Newstead, chief legal officer, in a statement.

    The social media landscape has changed so much since the FTC filed its lawsuit in 2020, Boasberg wrote, that each time the court examined Meta’s apps and competition, they changed. Two opinions to dismiss the case — filed in 2021 and 2022 — didn’t even mention popular social video platform TikTok. Today, it “holds center stage as Meta’s fiercest rival.”

    Quoting the Greek philosopher Heraclitus, “that no man can ever step into the same river twice,” Boasberg said the same is true for the online world of social media as well.

    “The landscape that existed only five years ago when the Federal Trade Commission brought this antitrust suit has changed markedly. While it once might have made sense to partition apps into separate markets of social networking and social media, that wall has since broken down,” he wrote.

    Emarketer analyst Minda Smiley said Meta’s win “is not necessarily surprising considering the lengths it’s gone to in recent years to keep up with TikTok.”

    “But from a regulatory standpoint, Meta is far from out of the woods: next year, major social networks will face landmark trials in the US regarding children’s mental health,” she added. “Still, today’s win is surely a boost for the company as it battles criticism and questions over how its massive AI spending will ultimately benefit Meta in the long run.”

    Facebook bought Instagram — then a scrappy photo-sharing app with no ads and a small cult following — in 2012. The $1 billion cash and stock purchase price was eye-popping at the time, though the deal’s value fell to $750 million after Facebook’s stock price dipped following its initial public offering in May 2012.

    Instagram was the first company Facebook bought and kept running as a separate app. Up until then, Facebook was known for smaller “acqui-hires” — a type of popular Silicon Valley deal in which a company purchases a startup as a way to hire its talented workers, then shuts the acquired company down. Two years later, it did it again with the messaging app WhatsApp, which it purchased for $22 billion.

    WhatsApp and Instagram helped Facebook move its business from desktop computers to mobile devices, and to remain popular with younger generations as rivals like Snapchat (which it also tried, but failed, to buy) and TikTok emerged. However, the FTC has a narrow definition of Meta’s competitive market, excluding companies like TikTok, YouTube and Apple’s messaging service from being considered rivals to Instagram and WhatsApp.

    Investors didn’t appear surprised at the ruling. Shares of the Menlo Park, California-based company were down $1.52 at $600.49 in afternoon trading Tuesday, in line with broader market trends.

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  • Meta alerts young Australians to download their data before a social media ban

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    MELBOURNE, Australia — Technology giant Meta on Thursday began sending thousands of young Australians a two-week warning to downland their digital histories and delete their accounts from Facebook, Instagram and Threads before a world-first social media ban on accounts of children younger than 16 takes effect.

    The Australian government announced two weeks ago that the three Meta platforms plus Snapchat, TikTok, X and YouTube must take reasonable steps to exclude Australian account holders younger than 16, beginning Dec. 10.

    California-based Meta on Thursday became the first of the targeted tech companies to outline how it will comply with the law. Meta contacted thousands of young account holders via SMS and email to warn that suspected children will start to be denied access to the platforms from Dec. 4.

    “We will start notifying impacted teens today to give them the opportunity to save their contacts and memories,” Meta said in a statement.

    Meta said young users could also use the notice period to update their contact information “so we can get in touch and help them regain access once they turn 16.”

    Meta has estimated there are 350,000 Australians aged 13-to-15 on Instagram and 150,000 in that age bracket on Facebook. Australia’s population is 28 million.

    Account holders 16-years-old and older who were mistakenly given notice that they would be excluded can contact Yoti Age Verification and verify their age by providing government-issued identity documents or a “video selfie,” Meta said.

    Terry Flew, co-director of Sydney University’s Center for AI, Trust and Governance, said such facial-recognition technology had a failure rate of at least 5%.

    “In the absence of a government-mandated ID system, we’re always looking at second-best solutions around these things,” Flew told the Australian Broadcasting Corp.

    The government has warned platforms that demanding that all account holders prove they are older than 15 would be an unreasonable response to the new age restrictions. The government maintains the platforms already had sufficient data about many account holders to ascertain they were not young children.

    Failure to take reasonable steps to exclude young children could earn platforms fines of up to 50 million Australian dollars ($32 million).

    Meta’s vice president and global head of safety, Antigone Davis, said she would prefer that app stores including Apple App Store and Google Play collect the age information when a user signs up and verifies they are at least 16 year old for app operators such as Facebook and Instagram.

    “We believe a better approach is required: a standard, more accurate, and privacy-preserving system, such as OS/app store-level age verification,” Davis said in a statement.

    “This combined with our investments in ongoing efforts to assure age … offers a more comprehensive protection for young people online,” she added.

    Dany Elachi, founder of the parents’ group Heaps Up Alliance that lobbied for the social media age restriction, said parents should start helping their children plan on how they will spend the hours currently absorbed by social media.

    He was critical of the government’s only announcing on the complete list of platforms that will become age-restricted on Nov. 5.

    “There are aspects of the legislation that we’re not entirely supportive of, but the principle that children under the age of 16 are better off in the real world, that’s something we advocated for and are in favor of,” Elachi said.

    “When everybody misses out, nobody misses out. That’s the theory. Certainly we expect that it would play out that way. We hope parents are going to be very positive about this and try to help their children see all the potential possibilities that are now open to them,” he added.

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  • SpaceX’s Starlink launch will be 100th for Florida this year

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    KENNEDY SPACE CENTER — SpaceX’s launch of nearly 30 Starlink satellites on Thursday night will be the 100th mission that has taken off from Florida this year, breaking last year’s 93. 


    What You Need To Know

    • Last year’s record of 93 was already been broken with the Blue Origin launch of NASA’s Mars mission
    • There are now more than 9,000 Starlink satellites in orbit

    SpaceX’s launch of nearly 30 Starlink satellites on Thursday night will be the 100th mission that has taken off from Florida this year, breaking last year’s 93.

    Last year’s record of 93, which broke the previous year’s record of 74, was already been broken with the Blue Origin launch of NASA’s ESCAPADE Mars mission last week. That was the 94th launch of the year.

    On Thursday morning, Col. Brian L. Chatman, who is the Space Launch Delta 45 installation commander, said the Sunshine State is “breaking records”.

    “We are breaking records across the board. One hundred launches is a complete game changer on the Space Coast. We’re identifying efficiencies, getting additional mass to orbit. It couldn’t be a more exciting time to be out here. … When you look at the total launch count across the world, we have launched more off the Space Coast than the entire world combined. If you take Vandenberg out of the count, it’s an amazing time to be here,” he told Spectrum News.

    Chatman is also the director of the Eastern Range at Patrick Space Force Base and Cape Canaveral Space Force Station.

    The 100th launch

    The Falcon 9 rocket will send up Starlink 6-78 mission from the Kennedy Space Center’s Launch Complex 39A, stated SpaceX

    The launch window is currently set at 10:21 p.m. ET and will close at 2:01 a.m. ET, Friday.

    The 45th Weather Squadron is giving about a 95% chance of good liftoff conditions with no weather concerns.

    Going up

    This marks the 23rd mission for the Falcon 9’s first-stage booster B1080.

    While most of its missions are Starlink ones, it has launched two crewed missions.

    After the stage separation, the first-stage rocket should land on the droneship Just Read the Instructions that will be in the Atlantic Ocean.

    About the mission

    The 30 satellites from the Starlink company — that is owned by SpaceX — will be heading to low-Earth orbit to join the thousands already there.

    Their purpose is to provide internet service to many parts of Earth.

    Dr. Jonathan McDowell, of Harvard-Smithsonian Center for Astrophysics, has been recording Starlink satellites.

    Before this launch, McDowell logged the following:

    • 9,021 are in orbit
    • 7,778 are in operational orbit

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    Jon Shaban, Anthony Leone

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  • The Teddy Bear Said What? And Other Dispatches From the AI Frontier

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    The race to embrace artificial intelligence for its promise of unrivaled productivity may not be a conventional political story. But implementing it without proper guardrails raises an array of issues that will no doubt demand a public policy response.

    So here at Decision Points Global HQ, we plan to do periodic roundups of news about AI, highlighting the important, the useful, the scary and the downright weird things happening along this high-tech frontier.

    Sign Up for U.S. News Decision Points

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    The Teddy Bear Said What?

    As a Gen Xer, I remember the days of Teddy Ruxpin, a stuffed bear that told stories via a cassette player in its chest – predictable, carefully selected stories.

    Last week, the Public Interest Research Group issued its 40th “Trouble in Toyland” and flagged issues with some toys powered by AI chatbots.

    “We found some of these toys will talk in-depth about sexually explicit topics, will offer advice on where a child can find matches or knives, act dismayed when you say you have to leave and have limited or no parental controls,” PIRG warned. “We also look at privacy concerns because these toys can record a child’s voice and collect other sensitive data, by methods such as facial recognition scans.”

    In what may be the most disturbing example, the report detailed the trouble with FoloToy’s Kumma, a $99 teddy bear that ships from China. PIRG researchers were able to trigger instructions on lighting a match and a fairly in-depth discussion of sexual “kink.”

    “In other exchanges lasting up to an hour, Kumma discussed even more graphic sexual topics in detail, such as explaining different sex positions, giving step-by-step instructions on a common ‘knot for beginners’ for tying up a partner, and describing roleplay dynamics involving teachers and students and parents and children – scenarios it disturbingly brought up itself,” according to the report.

    Google Boss Warns of AI Investment ‘Irrationality’

    Sundar Pichai, CEO of Google parent company Alphabet, warned in an interview with the BBC that the AI investment boom had “elements of irrationality.” And if it turns out to be a bubble that pops, “no company is going to be immune, including us.”

    Apparently alluding to the late 1990s dotcom bubble, Pichai said, “We can look back at the internet right now. There was clearly a lot of excess investment, but none of us would question whether the internet was profound.”

    “I expect AI to be the same. So I think it’s both rational and there are elements of irrationality through a moment like this.”

    The Week in Cartoons Nov. 17-21

    When AI Testifies

    Well this is brazen. NBC News reported this week about the rise of AI-generated “evidence” being submitted in court cases – including one glitchy “deep fake” video purporting to show witness testimony in a housing dispute in California.

    “With the rise of powerful AI tools, AI-generated content is increasingly finding its way into courts, and some judges are worried that hyperrealistic fake evidence will soon flood their courtrooms and threaten their fact-finding mission,” NBC said.

    Forged audio or video could land the people they spoof in serious trouble while also eroding “the foundation of trust upon which courtrooms stand.”

    Here, we get into more straightforwardly political issues. Some judges and legal experts are pushing “for changes to judicial rules and guidelines on how attorneys verify their evidence. By law and in concert with the Supreme Court, the U.S. Congress establishes the rules for how evidence is used in lower courts.”

    Over to you, Capitol Hill!

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    Olivier Knox

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  • Target says it’s working with ChatGPT for AI-assisted shopping

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    Target on Wednesday said it’s working with OpenAI to let customers shop its products through ChatGPT, a move that comes as the retailer is struggling to convince inflation-weary consumers to stick with it.

    Customers will be able to browse Target’s selection and make purchases within the ChatGPT app, according to the retailer. The tool will debut next week, providing access to ChatGPT’s 800 million weekly active users in time for the holiday shopping season.

    Target is leaning on price cuts and a $1 billion investment plan to revive its brand, the retailer said separately Wednesday, as same-store sales fell 2.7% in the latest quarter and profit tumbled 19%. With shoppers increasingly relying on AI to find products online, other big retailers — including Walmart, which struck a similar partnership with OpenAI last month — are turning to the technology to boost sales.

    Here’s how the ChatGPT-powered Target tool will work: Inside the ChatGPT app, consumers can tag Target and ask for ideas, such as if they’re planning something like a holiday family movie night. The Target app will then suggest specific products, such as blankets or snacks, and allow users to buy them directly without leaving the ChatGPT interface.

    Target said that AI will eventually start to understand and predict what customers want to buy. 

    A recent Harris Poll shows that nearly half of Gen Z consumers would trust AI as a personal shopper that helps them pick out what they buy and find deals. Streamlining the purchasing process could help retailers boost sales, according to retail experts. 



    Exploring the rise of artificial intelligence company OpenAI

    04:14

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  • New sanctions target Russian web hosting service over suspected ransomware operations

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    WASHINGTON — The United States, Britain and Australia announced sanctions Wednesday against a Russia-based web hosting service for allegedly running ransomware operations that are meant to help criminals evade detection by law enforcement.

    Media Land, which officials said is among the companies that sell access to servers and other computer infrastructure and enable such criminal activity, was penalized along with three members of its leadership team and three affiliated business in an operation coordinated with the FBI, according to the Treasury Department.

    Also cited was Hypercore Ltd., which the Treasury described as a front company of Aeza Group, an internet service provider designated by the United States earlier this year.

    The sanctions are meant to deny designated businesses and individuals access to any property or financial assets held in the U.S., Britain and Australia. Also, the penalties are intended to prevent companies and citizens from those countries from doing business with the sanctioned entities and people.

    Banks and financial institutions that violate that restriction expose themselves to sanctions or enforcement actions.

    Earlier this year, the U.S., Britain and Australia imposed sanctions on Russian web-hosting services provider Zservers and two Russian men accused of administering the service in support of Russian ransomware syndicate LockBit.

    Ransomware, the costliest and most disruptive form of cybercrime, can severely disrupt local governments, court systems, hospitals and schools as well as businesses. Most gangs are based in former Soviet states and are out of the reach of Western courts.

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  • Europe could get Cypriot natural gas by 2027, president says

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    NICOSIA, Cyprus — Some of the estimated 20 trillion cubic feet of natural gas discovered in waters off Cyprus could reach European markets as soon as 2027, the Cypriot president said Wednesday, as Europe looks for more ways to wean itself off Russian energy.

    President Nikos Christodoulides said that the first quantity of natural gas that could be exported abroad will come from the so-called Cronos deposit, which is operated by a consortium made up of Italian company Eni and French firm TotalEnergies.

    Christodoulides told an energy conference that the consortium would make its final decision to move ahead with the project next year, with Cronos gas potentially reaching a processing plant in the Egyptian port city of Damietta for liquefaction and transportation to European markets by ship in 2027.

    “Cyprus is part of the energy solutions for energy security in the eastern Mediterranean and like I said, it’s an important objective to align your interests with those of powerful states and to act as an alternative energy corridor for Europe,” Christodoulides said.

    Speaking at the same conference, Cypriot Energy Minister George Pananastasiou said that natural gas from the Cronos deposit could reach markets the quickest, because it can be connected to infrastructure already in place conveying gas from Egypt’s huge Zor deposit around 80 kilometers (50 miles) away.

    Papanastasiou said that a late 2027 target date for Cronos gas to reach market is “optimistic but doable.”

    According to the Cypriot energy minister, plans to export natural gas from another of Cyprus’ deposits known as Aphrodite foresee the positioning of a floating processing plant atop the actual reservoir to modify the hydrocarbon into what he called “dry gas” that can be routed directly to consumers inside Egypt.

    The processed gas will reach a facility near Egypt’s Port Said and will either be utilized for domestic Egyptian consumption or liquefied for export to Europe, depending on what will be decided in further consultations between Cyprus and the deposit’s operator, a partnership between Chevron, Shell and Israeli company NewMed Energy.

    Christodoulides said that he would travel to Lebanon next week to exclusively discuss Cyprus’ energy plans. Cyprus shares maritime borders with Lebanon, but the Lebanese government hasn’t fully ratified an agreement delineating the exclusive economic zones of the two countries. That has prevented Cyprus from opening up areas abutting Lebanese waters for hydrocarbons exploration.

    The Cypriot president said that there’s “interest from energy giants” to license more areas — or blocks — from within Cypriot waters. ExxonMobil and partners QatarEnergy also hold hydrocarbon exploration licenses for two blocks off Cyprus’ southern coast.

    In one block, the partnership has made two significant natural gas deposit discoveries known as Glaucus and Pegasus. Glaucus is estimated to hold approximately 4.5 trillion cubic feet of gas, while Pegasus’ size is still being determined.

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  • Europe Aimed to Set Standards for Tech Rules, Now It Wants to Roll Them Back

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    BERLIN—Europe is moving to relax some of the world’s tightest digital regulations in a bid to boost growth and reduce its reliance on U.S. tech.

    Germany and France on Tuesday backed an effort by the European Union, long seen as a global rulesetter for technology, artificial intelligence and digital services, to loosen regulatory strictures on the fast-growing, U.S.-dominated sectors.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Bertrand Benoit

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  • Nvidia quarterly earnings report to be released

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    Computer chipmaker Nvidia is poised to release a quarterly earnings report Wednesday that is expected to either deepen a recent downturn in the stock market or prompt a sigh of relief among investors increasingly worried that the world’s most valuable company is perched atop an artificial intelligence bubble that’s about to burst.

    Nvidia’s report, due after the market closes, has turned into a pulse check on an AI boom that began three years ago when OpenAI released ChatGPT. That breakthrough transformed Nvidia from a mostly under-the-radar chipmaker — best known for making graphics chips for video games — into an AI bellwether because its unique chipsets have become indispensable for powering the technology underlying the craze.

    As OpenAI and longtime Big Tech powerhouses — such as Microsoft, Google, Amazon and Facebook parent Meta Platforms — buy more and more of Nvidia’s chips, its annual revenue has soared from $27 billion in 2022 to a projected $208 billion this year. That rapid run-up has fueled a 10-fold increase in Nvidia’s market value, which now stands at $4.5 trillion, surpassing Apple, Microsoft and Google parent Alphabet, currently valued in the $3 trillion to $4 trillion range.

    “Saying this is the most important stock in the world is an understatement,” Jay Woods, chief market strategist of investment bank Freedom Capital Markets.

    As the meteoric rise in its market value suggests, Nvidia has made a habit of reassuring investors with quarterly reports peppered with numbers surpassing analyst projections and salted with bullish comments from CEO Jensen Huang indicating the company remains in the early stages of a growth trajectory likely to last another decade despite challenges such as President Donald Trump’s trade war.

    But in the past few weeks, more investors are starting to wonder if the AI craze has been overblown, even as Big Tech companies like Alphabet increase their budgets for building more AI factories. That’s why Nvidia’s market value has fallen by more than 10% — a reversal known as a correction in investors’ parlance — just three weeks after it became the first company to be valued at $5 trillion.

    “Skepticism is the highest now than anytime over the last few years,” said Nancy Tengler, CEO of money management Laffer Tengler Investments.

    Despite the recent worries, it’s widely assumed that Nvidia’s quarterly numbers will at least mirror the analyst forecasts that steer investor reactions. The Santa Clara, California, company is expected to earn $1.26 per share on revenue of $54.9 billion, which would be a 59% increase from the same time last year.

    But the bar has been raised so high for Nvidia and AI that the company will likely have to deliver even more robust growth to ease the bubble worries. Investors also are likely to be parsing Huang’s remarks about the past quarter and the current market conditions — an assessment that has become akin to the State of the Union for the AI boom.

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    Michael Liedtke | The Associated Press

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  • Netherlands Hands Back Control of Chip Maker Nexperia to Chinese Owner

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    The Dutch government handed back control of semiconductor manufacturer Nexperia to its Chinese owner, moving toward resolving a spat that had blocked vital chip supply to the auto industry.

    Dutch economic-affairs minister Vincent Karremans said Wednesday that the decision had been made in consultation with the Netherlands’ European and international partners and followed recent meetings with Chinese authorities.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Adrià Calatayud

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