Facing deep staffing cuts, the IRS plans to lean heavily on AI to maintain tax collection efforts, with Treasury Secretary Scott Bessent stating that smarter IT and the "AI boom" will offset reductions in revenue enforcement staff. The Register reports: When asked by Congressman Steny Hoyer (D-MD) whether proposed reductions in the IRS's IT budget, along with plans to cut additional staff, would affect the agencies ability to collect tax revenue, Bessent said it wouldn't, thanks to the current "AI boom." "I believe through smarter IT, through this AI boom, that we can use that to enhance collections," Bessent told Hoyer and the Committee (24:29 into the video linked [here]). "I expect collections would continue to be very robust as they were this year."

Bessent's comments didn't explain how the IRS intends to deploy AI. Given how much it has slashed its enforcement staff since Trump took office, the agency definitely needs to do something. [...] Bessent's comments didn't explain how the IRS intends to deploy AI. Given how much it has slashed its enforcement staff since Trump took office, the agency definitely needs to do something. "There is nothing that shows historically that bringing in unseasoned collections agents will result in more collections," Bessent told the Committee. "IRS already uses AI for business functions including operational efficiency, compliance and fraud detection, and taxpayer services," the agency told The Register. "AI use cases must follow all relevant IRS privacy and security policies."

schwit1 shares a report from Behind The Black: Almost immediately after India's government issued this week new tightened regulations for allowing private satellite constellations to sell their services in India, it also apparently completed negotiations with SpaceX to allow it to sell Starlink in India based on these rules. Business Today reports: "According to sources, the DoT [Department of Transportation] granted the LoI [Letter of Intent] after Starlink accepted 29 strict security conditions, including requirements for real-time terminal tracking, mandatory local data processing, legal interception capabilities, and localisation of at least 20% of its ground segment infrastructure within the first few years of operation.

Starlink's nod came amid heightened national security sensitivities, coinciding with India's pre-dawn Operation Sindoor strikes on terror camps across the border in response to the Pahalgam massacre. However, DoT officials clarified that the decision to approve Starlink was independent of these military developments." At the moment SpaceX's chief competitors, OneWeb and Amazon's Kuiper constellation, have not yet obtained the same permissions. This allows SpaceX to grab a large portion of the market share in India before either of these other companies.

In a recent interview with the Council on Foreign Relations, Cloudflare CEO Matthew Prince warned that AI is breaking the economic model of the web by decoupling content creation from value, with platforms like Google and OpenAI increasingly providing answers without driving traffic to original sources. He argued that unless AI companies start compensating creators, the web's content ecosystem will collapse -- calling most current AI investment a "money fire" with only a small fraction holding long-term value. Search Engine Land reports: Google's value exchange with content creators has collapsed, Prince said: "Ten years ago... for every two pages of a website that Google scraped, they would send you one visitor. ... That was the trade. ... Now, it takes six pages scraped to get one visitor." That drop reflects the rise of zero-click searches, which happen when searchers get answers directly on Google's search page. "Today, 75 percent of the queries... get answered without you leaving Google." This trend, long criticized by publishers and SEOs, is part of a broader concern: AI companies are using original content to generate answers that rarely/never drive traffic back to creators.

AI makes the problem worse. Large language models (LLMs) are accelerating the crisis, Prince said. AI companies scrape far more content per user interaction than Google ever has -- with even less return to creators. "What do you think it is for OpenAI? 250 to one. What do you think it is for Anthropic? Six thousand to one." "More and more the answers... won't lead you to the original source, it will be some derivative of that source." This situation threatens the sustainability of the web as we know it, Prince said: "If content creators can't derive value... then they're not going to create original content."

The modern web is breaking. AI companies are aware of the problem, and the business model of the web can't survive unless there's some change, Prince said: "Sam Altman at OpenAI and others get that. But... he can't be the only one paying for content when everyone else gets it for free." Cloudflare's right in the middle of this problem -- it powers 80% of AI companies and a 20-30% of the web. Cloudfaire is now trying to figure out how to help fix what's broken, Prince said. AI = money fire. Prince is not against AI. However, he said he is skeptical of the investment frenzy. "I would guess that 99% of the money that people are spending on these projects today is just getting lit on fire. But 1% is going to be incredibly valuable." "And so maybe we've all got a light, you know, $100 on fire to find that $1 that matters." You can watch a recording of the interview and read the full transcript here.

Meta CEO Mark Zuckerberg is aggressively promoting a future where AI becomes the dominant form of social interaction, claiming that AI friends, therapists, and business agents will soon outnumber human relationships. During a recent media blitz across multiple podcasts and a Stripe conference appearance, Zuckerberg cited statistics suggesting "the average American has fewer than three friends" while claiming people desire "meaningfully more, like 15 friends" -- positioning AI companions as the solution to this gap.

The Meta founder's vision extends beyond casual interaction to therapeutic and commercial relationships, with personalized AI that "has a deep understanding of what's going on in this person's life." Meta has already deployed its AI across Instagram, Facebook, and Ray-Ban smart glasses, reaching nearly a billion monthly users.

Harman International, a Samsung subsidiary, announced it is acquiring Masimo's consumer audio division for $350 million in cash. "The deal is expected to finalized by the end of 2025, though it's still subject to regulatory approvals," notes Engadget. From the report: Samsung purchased Harman International back in 2017 for $8 billion, though it allowed the company to operate as an independent subsidiary. Harman's brands include JBL, Harman Kardon, AKG, Mark Levinson, Arcam and Revel. If and when the acquisition pushes through, Masimo's audio brands under Sound United will be added to the list, including Bowers & Wilkins, Denon, Marantz and Polk Audio. [...]

As noted by The Verge, Samsung published a press release, where it briefly talked about the history of the brands it's acquiring. It mentioned some of Bowers & Wilkins' most iconic products, such as the Nautilus loudspeaker (pictured above) and its Zeppelin wireless speaker, as well as Denon's history as an early adopter of the CD player. Harman had a 60 percent market share in portable audio devices last year, and the company is looking to maintain that position with this purchase. Samsung also plans to apply the new brands' audio technologies to its smartphones, TVs, wireless earphones, soundbars and other devices in the future.

According to Bloomberg, the Trump administration plans to revise a set of chip trade restrictions called the "AI diffusion" rule, which were scheduled to take effect on May 15. CNBC reports: The rule, which was proposed in the last days of the Biden administration, organizes countries into three different tiers, all of which have different restrictions on whether advanced AI chips like those made by Nvidia, AMD, and Intel can be shipped to the country without a license.

Chipmakers including Nvidia and AMD have been against the rule. AMD CEO Lisa Su told CNBC on Wednesday that the U.S. should strike a balance between restricting access to chips for national security and providing access, which will boost the American chip industry. Nvidia CEO Jensen Huang said earlier this week that being locked out of the Chinese AI market would be a "tremendous loss."

IBM CEO Arvind Krishna said the tech giant has used AI, and specifically AI agents, to replace the work of a couple hundred human resources workers. As a result, it has hired more programmers and salespeople, he said. From a report: Krishna's comments on Monday come as businesses sort through the workforce impacts of AI and AI agents, the independent bots that can autonomously perform tasks like analyze spreadsheets, conduct research and draft emails.

While there haven't yet been widespread layoffs or downsizing as a result of AI across the economy, some business leaders have said they are holding down head count as they investigate the use of the technology.

Meanwhile, the information-technology workforce has continued to shrink as AI weighs on hiring and some workers leave the field. For IBM, which this week hosts its annual Think conference in Boston, AI adoption has led it to boost hiring in some functions.

An anonymous reader quotes a report from TechCrunch: The U.S. Federal Trade Commission (FTC) on Monday released new documentation detailing its new "Rule on Unfair or Deceptive Fees." The rule, set to take effect on May 12, prohibits hidden fees for live events, hotels, and short-term rentals. It also bans practices such as "bait-and-switch pricing" and any actions that conceal or misrepresent total prices and fees.

In a newly published FAQ, the FTC offers a guide for these types of businesses, providing detailed information about pricing transparency. The rule will impact businesses, including live-event ticket sellers and short-term lodging providers, like hotels, motels, Airbnb, or VRBO. Third-party platforms, resellers, and travel agents are also covered by the new regulation. (Airbnb already updated its service in advance of this new regulation to show users the total cost of their stay upfront.) [...]

Also included in the FTC's new FAQ are the types of fees that can be excluded, such as taxes or government fees, shipping charges, and charges for optional goods or services people may select to buy as part of the same transaction. (Note that handling charges aren't on this list.) However, the FTC notes that businesses must disclose that it has excluded charges from the total price before asking for payment. For example, if a business excludes shipping charges from the advertised price, it's required to clearly state the amount and purpose of those charges.

Reddit's Steve Huffman isn't mincing words about what he found when he came back as CEO in 2015: a company full of idealists who weren't exactly killing themselves with hard work.

"We were really idealistic, and that's been good in many ways, but we were also idealistic about not being a business," Huffman said on the "Prof G Pod" podcast. "Wrapped up in some of that idealism was also not working very hard," he added.

Huffman sees this as a Silicon Valley disease: "It's almost an entitlement of, 'I work at these companies, but I don't have to work very hard and I'm here for myself.'"

Microsoft has instituted a stringent new performance management system that places ousted employees on a two-year rehiring block list and categorizes their departures as "good attrition," Business Insider reported Tuesday, citing internal documents. The company now tracks staff departures it considers beneficial, mirroring Amazon's "unregretted attrition" metric, though no specific targets have been established yet.

Microsoft recently terminated 2,000 underperforming employees without severance and implemented a new performance improvement plan (PIP). Employees facing performance issues now must choose between entering the PIP or accepting a "Global Voluntary Separation Agreement" with 16 weeks of pay.

Further reading: Microsoft Offers Underperformers Cash To Quit.

An anonymous reader quotes a report from Reuters: OpenAI has agreed to buy artificial intelligence-assisted coding tool Windsurf for about $3 billion, Bloomberg News reported on Monday, citing people familiar with the matter. The deal has not yet closed, the report added. Windsurf, formerly known as Codeium, had recently been in talks with investors including General Catalyst and Kleiner Perkins to raise funding at a $3 billion valuation, according to Bloomberg News. The report notes that the deal "would be OpenAI's largest acquisition to date," further complementing ChatGPT's coding capabilities.

Microsoft officially shuttered Skype on May 5, ending the pioneering video chat service's 22-year run. The closure, announced in February, completes Skype's absorption into Microsoft Teams, the company's Slack competitor. Users opening Skype apps will now be redirected to Teams. The only surviving component is the Skype Dial Pad, which remains available within Microsoft Teams Free for subscribers to make calls to traditional phone numbers.

The once-dominant video calling platform was purchased by Microsoft for $8.5 billion in 2011, replacing the company's Windows Live Messenger. Created in 2003 by developers behind Kazaa file-sharing software, Skype became synonymous with video calling during broadband internet's expansion. Skype's decline accelerated after Microsoft's acquisition, with unpopular redesigns and competition from Zoom, which captured market share during the COVID-19 pandemic. Microsoft began phasing out Skype in 2017, starting with Skype for Business, while bundling Teams with Office applications until regulatory intervention forced their separation.

OpenAI has decided that its nonprofit division will retain control over its for-profit organization, after the company initially announced that it planned to convert to a for-profit organization. From a report: According to the company, OpenAI's business wing, which has been under the nonprofit since 2019, will transition to a public benefit corporation (PBC). The nonprofit will control and also be a large shareholder of the PBC. "OpenAI was founded as a nonprofit, and is today overseen and controlled by that nonprofit," OpenAI Board Chairman Bret Taylor wrote in a statement on the company's blog. "Going forward, it will continue to be overseen and controlled by that nonprofit."

OpenAI says that it made the decision "after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California." "We thank both offices and we look forward to continuing these important conversations to make sure OpenAI can continue to effectively pursue its mission," Taylor continued.

The United Arab Emirates will introduce AI to the public school curriculum this year, as the Gulf country vies to become a regional powerhouse for AI development. From a report: The subject will be rolled out in the 2025-2026 academic year for kindergarten pupils through to 12th grade, state-run news agency WAM reported on Sunday. The course includes ethical awareness as well as foundational concepts and real-world applications, it said. The UAE joins a growing group of countries integrating AI into school education. Beijing announced a similar move to roll out AI courses to primary and secondary students in China last month.

Yahoo Finance reports that Mark Zuckerberg made bold predictions for investors on Meta's earnings call this week — about advertisers. "AI has already made us better at targeting and finding the audiences that will be interested in their products than many businesses are themselves," Zuck said, "and that keeps improving..."

"If we deliver on this vision, then over the coming years, I think that the increased productivity from AI will make advertising a meaningfully larger share of global GDP than it is today..." If investors are still searching for answers to nagging questions about how massive AI investments will pay off, Zuckerberg provided the clearest reply yet: It will strengthen our core business. In fact, it is our business... On what many believe to be the cusp of an economic downturn, Meta isn't pitching its AI developments as an add-on to its operations, but as something central to its core proposition of targeted advertising...

"While Meta's investments in GenAI have spooked certain investors who continue to question the return on these investments, we saw further signs of GenAI monetization in the firm's ad business," wrote Morningstar equity analyst Malik Ahmed Khan in a note on Thursday. In a powerful showing, coming after Alphabet's own impressive results, Meta noted that a new ads recommendation model it's testing for Reels has already boosted conversion rates by 5%. And nearly one-third of advertisers were using AI creative tools in the past quarter. For Zuckerberg, the enhancements AI offers to finding the right consumers and providing measurable results strengthen the case for boosting capacity and for a revamped model of advertising's scope.

And with the company set to invest upwards of $70 billion toward its AI opportunity this year, the bet is not all about ads, of course. Zuckerberg outlined four other areas of focus for its AI efforts: business messaging, Meta AI, AI devices, and more engaging experiences. Meta's efforts can also be viewed as an ambitious play to take on its rivals across tech's legacy and emerging platforms. As John Blackledge, senior analyst at TD Cowen, said in a note on Thursday, the AI opportunities Zuckerberg outlined are about "ultimately taking on Google search, iPhone and ChatGPT all at once."
In the pre-AI world, "Businesses used to have to generate their own ad creative and define what audiences they wanted to reach," Zuckerberg told Meta's investors this week.

And by Friday's closing, Meta's stock had jumped 12.6% over its value Wednesday morning, leading Yahoo Finance to conclude that Wall Street "appears to be buying into" Zuckerberg's vision.

An anonymous reader shared this report from The Verge: Firefox could be put out of business should a court implement all the [U.S.] Justice Department's proposals to restrict Google's search monopoly, an executive for the browser owner Mozilla testified Friday. "It's very frightening," Mozilla CFO Eric Muhlheim said.

The Department of Justice wants to bar Google from paying to be the default search engine in third-party browsers including Firefox, among a long list of other proposals including a forced sale of Google's own Chrome browser and requiring it to syndicate search results to rivals. The court has already ruled that Google has an illegal monopoly in search, partly thanks to exclusionary deals that make it the default engine on browsers and phones, depriving rivals of places to distribute their search engines and scale up. But while Firefox — whose CFO is testifying as Google presents its defense — competes directly with Chrome, it warns that losing the lucrative default payments from Google could threaten its existence.

Firefox makes up about 90 percent of Mozilla's revenue, according to Muhlheim, the finance chief for the organization's for-profit arm — which in turn helps fund the nonprofit Mozilla Foundation. About 85 percent of that revenue comes from its deal with Google, he added. Losing that revenue all at once would mean Mozilla would have to make "significant cuts across the company," Muhlheim testified, and warned of a "downward spiral" that could happen if the company had to scale back product engineering investments in Firefox, making it less attractive to users. That kind of spiral, he said, could "put Firefox out of business." That could also mean less money for nonprofit efforts like open source web tools and an assessment of how AI can help fight climate change.

Ironically, Muhlheim seemed to suggest that could cement the very market dominance the court seeks to remedy. Firefox's underlying Gecko browser engine is "the only browser engine that is held not by Big Tech but by a nonprofit," he said.

An anonymous reader quotes a report from CNN: Driverless trucks are officially running their first regular long-haul routes, making roundtrips between Dallas and Houston. On Thursday, autonomous trucking firm Aurora announced it launched commercial service in Texas under its first customers, Uber Freight and Hirschbach Motor Lines, which delivers time- and temperature-sensitive freight. Both companies conducted test runs with Aurora, including safety drivers to monitor the self-driving technology dubbed "Aurora Driver." Aurora's new commercial service will no longer have safety drivers.

"We founded Aurora to deliver the benefits of self-driving technology safely, quickly, and broadly, said Chris Urmson, CEO and co-founder of Aurora, in a release on Thursday. "Now, we are the first company to successfully and safely operate a commercial driverless trucking service on public roads." The trucks are equipped with computers and sensors that can see the length of over four football fields. In four years of practice hauls the trucks' technology has delivered over 10,000 customer loads. As of Thursday, the company's self-driving tech has completed over 1,200 miles without a human in the truck. Aurora is starting with a single self-driving truck and plans to add more by the end of 2025.

The U.S. government is seeking to break up Google's advertising technology business after a judge ruled the company holds an illegal monopoly over ad tools for publishers, marking the second such antitrust case following a similar request to divest Chrome. The Guardian reports: "We have a defendant who has found ways to defy" the law, US government lawyer Julia Tarver Wood told a federal court in Virginia, as she urged the judge to dismiss Google's assurance that it would change its behavior. "Leaving a recidivist monopolist" intact was not appropriate to solve the issue, she added. [...] The US government specifically alleged that Google controls the market for publishing banner ads on websites, including those of many creators and small news providers.

The hearing in a Virginia courtroom was scheduled to plan out the second phase of the trial, set for September, in which the parties will argue over how to fix the ad market to satisfy the judge's ruling. The plaintiffs argued in the first phase of the trial last year that the vast majority of websites use Google ad software products which, combined, leave no way for publishers to escape Google's advertising technology and pricing.

The district court judge Leonie Brinkema agreed with most of that reasoning, ruling last month that Google built an illegal monopoly over ad software and tools used by publishers, but partially dismissed the argument related to tools used by advertisers. The US government said it would use the trial to recommend that Google should spin off its ad publisher and exchange operations, as Google could not be trusted to change its ways. "Behavioral remedies are not sufficient because you can't prevent Google from finding a new way to dominate," Tarver Wood said.

Google countered that it would recommend that it agree to a binding commitment that it would share information with advertisers and publishers on its ad tech platforms. Google lawyer Karen Dunn did, however, acknowledge the "trust issues" raised in the case and said the company would accept monitoring to guarantee any commitments made to satisfy the judge. Google is also arguing that calls for divestment are not appropriate in this case, which Brinkema swiftly refused as an argument. The judge urged both sides to mediate, stressing that coming to a compromise solution would be cost-effective and more efficient than running a weeks-long trial.

Meta's Reality Labs posted a $4.2 billion operating loss in Q1 2025. According to CNBC, cumulative losses since 2020 now exceed $60 billion. From the report: Meta's Reality Labs unit is responsible for the company's Quest-branded virtual reality headsets and Ray-Ban Meta Smart Glasses. It's the key business unit that anchors CEO Mark Zuckerberg's plans to build a new computing platform involving digital worlds accessible via VR and augmented reality devices. [...]

Wall Street has questioned Meta's big spending on the metaverse, which Zuckerberg has said could take many years to turn into a real business. The company must now also contend with sweeping new tariffs from President Donald Trump and the likely increase in costs that will follow, potentially leading to higher-priced devices. Last week, Meta said that an unspecified number of Reality Labs employees were laid off. Those workers were part of the Oculus Studios unit, which creates VR and AR games and content for Quest VR headsets.

After 10 consecutive quarters of rising AI-related investment, Microsoft has put on the brakes, spending over $1 billion less than the previous quarter (source paywalled; alternative source). Despite the slight slowdown, Microsoft posted stronger-than-expected results with $70 billion in revenue and $25.8 billion in profit. The New York Times reports: In the first three months of 2025, Microsoft spent $21.4 billion on capital expenses, down more than $1 billion from the previous quarter. The company is still on track to spend more than $80 billion on capital expenses in the current fiscal year, which ends in June. But the pullback, though slight, is an indication that the tech industry's appetite for spending on A.I. is not limitless.

Overall, Microsoft's results showed unexpected strength in its business. Sales surpassed $70 billion, up 13 percent from the same period a year earlier. Profit rose to $25.8 billion, up 18 percent. The results far surpassed Wall Street's expectations. "Cloud and A.I. are the essential inputs for every business to expand output, reduce costs, and accelerate growth," Satya Nadella, Microsoft's chief executive, said in a statement.