Microsoft

Microsoft Vows Legal Fight Against US To Protect European Cloud Customers (ft.com) 49

Microsoft has pledged to take the US government to court if necessary [alternative source] to protect European customers' access to its cloud services, as concerns mount over potential technology disruptions under President Donald Trump. Brad Smith, Microsoft's president and vice-chair, announced five "digital commitments" to Europe on Wednesday, responding to regional anxieties following Trump's temporary suspension of military support to Ukraine.

"We as a company need to be a source of digital stability during a period of geopolitical volatility," Smith said. The commitments include contesting any government order to cease European cloud services through legal channels and establishing European oversight of its continental operations. Microsoft will increase its European data center capacity by 40% over the next two years, expanding in 16 countries with investments of "tens of billions of dollars" annually. The Seattle-based company, which derives more than a quarter of its business from Europe, becomes the first major American tech firm to proactively address European concerns amid escalating trade tensions.
AI

Gen AI Is Not Replacing Jobs Or Hurting Wages At All, Say Economists 108

An anonymous reader quotes a report from The Register: Instead of depressing wages or taking jobs, generative AI chatbots like ChatGPT, Claude, and Gemini have had almost no wage or labor impact so far -- a finding that calls into question the huge capital expenditures required to create and run AI models. In a working paper released earlier this month, economists Anders Humlum and Emilie Vestergaard looked at the labor market impact of AI chatbots on 11 occupations, covering 25,000 workers and 7,000 workplaces in Denmark in 2023 and 2024.

Many of these occupations have been described as being vulnerable to AI: accountants, customer support specialists, financial advisors, HR professionals, IT support specialists, journalists, legal professionals, marketing professionals, office clerks, software developers, and teachers. Yet after Humlum, assistant professor of economics at the Booth School of Business, University of Chicago, and Vestergaard, a PhD student at the University of Copenhagen, analyzed the data, they found the labor and wage impact of chatbots to be minimal. "AI chatbots have had no significant impact on earnings or recorded hours in any occupation," the authors state in their paper.

The report should concern the tech industry, which has hyped AI's economic potential while plowing billions into infrastructure meant to support it. Early this year, OpenAI admitted that it loses money per query even on its most expensive enterprise SKU, while companies like Microsoft and Amazon are starting to pull back on their AI infrastructure spending in light of low business adoption past a few pilots. The problem isn't that workers are avoiding generative AI chatbots -- quite the contrary. But they simply aren't yet equating to actual economic benefits.
"The adoption of these chatbots has been remarkably fast," Humlum told The Register. "Most workers in the exposed occupations have now adopted these chatbots. Employers are also shifting gears and actively encouraging it. But then when we look at the economic outcomes, it really has not moved the needle."

Humlum said while there are gains and time savings to be had, "there's definitely a question of who they really accrue to. And some of it could be the firms -- we cannot directly look at firm profitability. Some of it could also just be that you save some time on existing tasks, but you're not really able to expand your output and therefore earn more. So it's like it saves you time writing emails. But if you cannot really take on more work or do something else that is really valuable, then that will put a damper on how much we should actually expect those time savings to affect your earning ability, your total hours, your wages."

"In terms of economic outcomes, when we're looking at hard metrics -- in the administrative labor market data on earnings, wages -- these tools have really not made a difference so far," said Humlum. "So I think that that puts in some sense an upper bound on what return we should expect from these tools, at least in the short run. My general conclusion is that any story that you want to tell about these tools being very transformative, needs to contend with the fact that at least two years after [the introduction of AI chatbots], they've not made a difference for economic outcomes."
Patents

OIN Marks 20 Years of Defending Linux and Open Source From Patent Trolls (zdnet.com) 3

An anonymous reader quotes a report from ZDNet: Today, open-source software powers the world. It didn't have to be that way. The Open Invention Network's (OIN) origins are rooted in a turbulent era for open source. In the mid-2000s, Linux faced existential threats from copyright and patent litigation. Besides, the infamous SCO lawsuit and Microsoft's claims that Linux infringed on hundreds of its patents cast a shadow over the ecosystem. Business leaders became worried. While SCO's attacks petered out, patent trolls -- formally known as Patent Assertion Entities (PAEs) -- were increasing their attacks. So, open-source friendly industry giants, including IBM, Novell, Philips, Red Hat, and Sony, formed the Open Invention Network (OIN) to create a bulwark against patent threats targeting Linux and open-source technologies. Founded in 2005, the Open Invention Network (OIN) has evolved into a global community comprising over 4,000 participants, ranging from startups to multinational corporations, collectively holding more than three million patents and patent applications.

At the heart of OIN's legal strategy is a royalty-free cross-license agreement. Members agree not to assert their patents against the Linux System, creating a powerful network effect that shields open-source projects from litigation. As OIN CEO Keith Bergelt explained, this model enables "broad-based participation by ensuring patent risk mitigation in key open-source technologies, thereby facilitating open-source adoption." This approach worked then, and it continues to work today. [...] Over the years, OIN's mission has expanded beyond Linux to cover a range of open-source technologies. Its Linux System Definition, which determines the scope of patent cross-licensing, has grown from a few core packages to over 4,500 software components and platforms, including Android, Apache, Kubernetes, and ChromeOS. This expansion has been critical, as open source has become foundational across industries such as finance, automotive, telecommunications, and artificial intelligence.

Crime

Fired Disney Employee Gets 3 Years in Prison For Hacking and Changing Menus (cnn.com) 71

A former Disney employee who hacked into the company's servers to alter its restaurant menus, including falsifying allergen information and printing profane language, has been sentenced to three years in prison. From a report: Michael Scheuer, a Florida resident, was sentenced last week in federal court and ordered to pay nearly $690,000 in restitution, with most of that going to Disney. He pled guilty in January to one count of computer fraud and one count of aggravated identity theft.

"Scheuer remains remorseful and apologetic to his former co-workers. We are grateful that the judge heard all of our arguments and mitigation when fashioning a sentence that was half of what the government was seeking," said David Haas, Scheuer's lawyer, in a statement to CNN.

Scheuer worked as a menu production manager for Disney and was fired last June for misconduct, according to the original complaint. He had access to, and also used, secure internal servers for creating and publishing menus for all of Disney's restaurants as part of his job at the company.

The Internet

Amazon Launches First Kuiper Internet Satellites (cnbc.com) 46

Amazon successfully launched the first 27 satellites for its Project Kuiper internet constellation, kicking off a major effort to compete with Starlink by deploying over 1,600 satellites by mid-2026. It company is investing $10 billion in Kuiper and plans to begin commercial service later this year. CNBC reports: "We had a nice smooth countdown, beautiful weather, beautiful liftoff, and Atlas V is on its way to orbit to take those 27 Kuiper satellites, put them on their way and really start this new era in internet connectivity," Caleb Weiss, a systems engineer at ULA, said on the livestream following the launch.

The satellites are expected to separate from the rocket roughly 280 miles above Earth's surface, at which point Amazon will look to confirm the satellites can independently maneuver and communicate with its employees on the ground. [...] In his shareholder letter earlier this month, Amazon CEO Andy Jassy said Kuiper will require upfront investment at first, but eventually the company expects it to be "a meaningful operating income and ROIC business for us." ROIC stands for return on invested capital. Investors will be listening for any commentary around further capex spend on Kuiper when Amazon reports first-quarter earnings after the bell on Thursday.
A livestream can be found here.
Businesses

Digital Photo Frame Company Nixplay Slashes Free Cloud Storage From 10GB To 500MB 31

Nixplay has dramatically reduced its free cloud storage offering for digital photo frame users from the original 10GB to just 500MB. The previously announced update, which took effect last week, also removed the formerly free ability to sync Google Photos albums. Users whose accounts already exceed the new 500MB limit will find their content "restricted from sharing or viewing" unless they edit their library or purchase a subscription. Nixplay now offers two paid tiers: Nixplay Lite at $19.99 annually for 100GB storage and Nixplay Plus at $29.99 yearly for unlimited storage.
IBM

IBM Pledges $150 Billion US Investment (reuters.com) 42

IBM announced plans to invest $150 billion in the United States over the next five years, with more than $30 billion earmarked specifically for research and development of mainframes and quantum computing technology. The investment follows similar commitments from tech giants including Apple and Nvidia -- each pledging approximately $500 billion -- in the wake of President Trump's election and tariff threats.

"We have been focused on American jobs and manufacturing since our founding 114 years ago," said IBM CEO Arvind Krishna in a statement. The company currently manufactures its mainframe systems in upstate New York and plans to continue designing and assembling quantum computers domestically. The announcement comes amid challenging circumstances for IBM, which recently saw 15 government contracts shelved under the Trump administration's cost-cutting initiatives.

Further reading: IBM US Cuts May Run Deeper Than Feared - and the Jobs Are Heading To India;
IBM Now Has More Employees In India Than In the US (2017).
Chrome

'Don't Make Google Sell Chrome' (hey.com) 180

Ruby on Rails creator and Basecamp CTO David Heinemeier Hansson, makes a case for why Google shouldn't be forced to sell Chrome: First, Chrome won the browser war fair and square by building a better surfboard for the internet. This wasn't some opportune acquisition. This was the result of grand investments, great technical prowess, and markets doing what they're supposed to do: rewarding the best. Besides, we have a million alternatives. Firefox still exists, so does Safari, so does the billion Chromium-based browsers like Brave and Edge. And we finally even have new engines on the way with the Ladybird browser.

Look, Google's trillion-dollar business depends on a thriving web that can be searched by Google.com, that can be plastered in AdSense, and that now can feed the wisdom of AI. Thus, Google's incredible work to further the web isn't an act of charity, it's of economic self-interest, and that's why it works. Capitalism doesn't run on benevolence, but incentives.

We want an 800-pound gorilla in the web's corner! Because Apple would love nothing better (despite the admirable work to keep up with Chrome by Team Safari) to see the web's capacity as an application platform diminished. As would every other owner of a proprietary application platform. Microsoft fought the web tooth and nail back in the 90s because they knew that a free, open application platform would undermine lock-in -- and it did!

Power

Nuclear Fusion Pioneer Abandons Plan for Prototype Reactor, Will License Reaction-Boosting Nuclear Fuel Capsule (yahoo.com) 65

Remember First Light Fusion? Founded in 2011, it was a pioneering British startup that in 2022 "successfully combined atomic nuclei, which U.K. regulators called a milestone in the decades-long push for fusion energy.

It's now "pulled the plug on plans to build its first reactor," reports the Telegraph, abandoning its push for a prototype power plant based on its "projectile fusion" technology due to a lack of funding. The technology involves a 5p-sized projectile being fired at a fuel cell at extreme speeds using electromagnets to generate a powerful reaction and simulate collisions at extremely high speeds, such as those in space. Instead of building its own plant, First Light plans to supply other nuclear power companies with one of its inventions, called an "amplifier", which houses a nuclear fuel capsule and boosts the power of fusion reactions.

The group has burned through tens of millions of pounds trying to bring its technology to fruition... The decision to ditch its original plan will allow First Light Fusion to be more "capital light", the nuclear group said in March, while licensing its inventions would generate more revenues. The company said it had recently secured the first tranche of a new funding round. Mark Thomas, First Light Fusion's chief executive, said: "We have been very pleased with the response to our strategy pivot, moving to an enabler of inertial fusion while rapidly accelerating revenues...

First Light Fusion's other investors include Chinese technology giant Tencent.

Transportation

iPad Jammed in Seat Forces Emergency Landing of Airplane Carrying 400 Passengers (yahoo.com) 85

An anonymous reader shared this report from Business Insider: A Lufthansa flight carrying 461 passengers had to divert after someone's tablet became "jammed" in a business-class seat.

The Airbus A380 took off from Los Angeles on Wednesday, bound for Munich, and had been flying for around three hours when the pilots diverted to Boston Logan International Airport. In a statement to Business Insider, an airline spokesperson said the tablet had become "jammed in a Business Class seat" and had "already shown visible signs of deformation due to the seat's movements" when the flight diverted. [The aviation site] Simply Flying, which first reported the news, said the device was an iPad.

The decision to divert was taken "to eliminate any potential risk, particularly with regard to possible overheating," the spokesperson added, saying that it was the joint decision of the crew and air traffic control. Lithium batteries pose a safety risk if damaged, punctured, or crushed... In a confined space like an aircraft cabin, a lithium battery fire poses a serious hazard to the passengers onboard. Last year, a Breeze Airways flight from Los Angeles to Pittsburgh had to make an emergency landing in Albuquerque after a passenger's laptop caught fire.

Television

YouTube is Huge - and a Few Creators Are Getting Rich (aol.com) 32

"Google-owned YouTube's revenue last year was estimated to be $54.2 billion," reports the Los Angeles Times, "which would make it the second-largest media company behind Walt Disney Co., according to a recent report from research firm MoffettNathanson, which called YouTube 'the new king of all media.'" YouTube, run by Chief Executive Neal Mohan since 2023, accounted for 12% of U.S. TV viewing in March, more than other rival streaming platforms including Netflix and Tubi, according to Nielsen... More people are watching YouTube on TV sets rather than on smartphones and computer screens, consuming more than 1 billion hours on average of YouTube content on TV daily, the company said on its website.
When YouTube first started its founders envisioned it as a dating site, according to the article, "where people would upload videos and score them. When that didn't work, the founders decided to open up the platform for all sorts of videos." And since this was 20 years ago, "Users drove traffic to YouTube by sharing videos on MySpace."

But the article includes stories of people getting rich through YouTube's sharing of ad revenue: Patrick Starrr, who produces makeup tutorial videos, said he made his first $1 million through YouTube at the age of 25. He left his job at retailer MAC Cosmetics in Florida and moved to L.A...

[Video creator Dhar Mann] started posting videos on YouTube in 2018 with no film background. Mann previously had a business that sold supplies to grow weed. Today, his company, Burbank-based Dhar Mann Studios, operates on 125,000 square feet of production space, employs roughly 200 people and works with 2,000 actors a year on family friendly programs that touch on how students and families deal with topics such as bullying, narcolepsy, chronic inflammatory bowel disease and hoarding. Mann made $45 million last year, according to Forbes estimates. The majority of his company's revenue comes through YouTube.

He tells the Times "I don't think it's just the future of TV — it is TV, and the world is catching on."

And then there's this... "My mom would always give me so much crap about it — she would say, 'Why do you want to do YouTube?'" said Chucky Appleby, now an executive at MrBeast. His reply: "Mom, you can make a living from this." MrBeast's holding company, Beast Industries, which employs more than 400 people, made $473 million in revenue last year, according to Business Insider. In the last 28 days, MrBeast content — which includes challenges and stunt videos — received 3.6 billion views on YouTube, Appleby said.

Appleby, 28, said he's since bought a Jeep for his mom.

United States

California Becomes the World's Fourth-Largest Economy, Overtaking Japan (cnn.com) 171

"Only the United States, China and Germany have larger economies than California," reports CNN.

In fact, they add that California "outpaced all three countries with growth of 6% last year," according to the California governor's office (which cites new data from the International Monetary Fund and the U.S. Bureau of Economic Analysis): In 2024, California's growth rate of 6% outpaced the top three economies: U.S. (5.3%), China (2.6%) and Germany (2.9%)...

With an increasing state population and recent record-high tourism spending, California is the nation's top state for new business starts, access to venture capital funding, and manufacturing, high-tech, and agriculture. The state drives national economic growth and also sends over $83 billion more to the federal government than it receives in federal funding. California is the leading agricultural producer in the country and is also the center for manufacturing output in the United States, with over 36,000 manufacturing firms employing over 1.1 million Californians.

The data shows that last year California accounted for 14% of America's GDP, CNN points out, "driven by Silicon Valley and its real estate and finance sectors."
Transportation

Cheap 'Transforming' Electric Truck Announced by Jeff Bezos-Backed Startup (techcrunch.com) 163

It's a pickup truck "that can change into whatever you need it to be — even an SUV," according to the manufacturer's web site.

Selling in America for just $20,000 (after federal incentives), the new electric truck is "affordable, deeply customizable, and very analog," says TechCrunch. "It has manual windows and it doesn't come with a main infotainment screen. Heck, it isn't even painted..." Slate Auto is instead playing up the idea of wrapping its vehicles, something executives said they will sell in kits. Buyers can either have Slate do that work for them, or put the wraps on themselves. This not only adds to the idea of a buyer being able to personalize their vehicle, but it also cuts out a huge cost center for the company. It means Slate won't need a paint shop at its factory, allowing it to spend less to get to market, while also avoiding one of the most heavily regulated parts of vehicle manufacturing.

Slate is telling customers that they can name the car whatever they want, offering the ability to purchase an embossed wrap for the tailgate. Otherwise, the truck is just referred to as the "Blank Slate...." It's billing the add-ons as "easy DIY" that "non-gearheads" can tackle, and says it will launch a suite of how-to resources under the billing of Slate University... The early library of customizations on Slate's website range from functional to cosmetic. Buyers can add infotainment screens, speakers, roof racks, light covers, and much more.... All that said, Slate's truck comes standard with some federally mandated safety features such as automatic emergency braking, airbags, and a backup camera.

"The specs show a maximum range of 150 miles on a single charge, with the option for a longer-range battery pack that could offer up to 240 miles," reports NBC News (adding that the vehicles "aren't expected to be delivered to customers until late 2026, but can be reserved for a refundable $50 fee.") Earlier this month, TechCrunch broke the news that Bezos, along with the controlling owner of the Los Angeles Dodgers, Mark Walter; and a third investor, Thomas Tull, had helped Slate raise $111 million for the project. A document filed with the Securities and Exchange Commission listed Melinda Lewison, the head of Bezos' family office, as a Slate Auto director.
Thanks to Slashdot reader fjo3 for sharing the news.
Google

What Happens When You Pay People Not to Use Google Search? (yahoo.com) 51

"A group of researchers says it has identified a hidden reason we use Google for nearly all web searches," reports the Washington Post. "We've never given other options a real shot." Their research experiment suggests that Google is overwhelmingly popular partly because we believe it's the best, whether that's true or not. It's like a preference for your favorite soda. And their research suggested that our mass devotion to googling can be altered with habit-changing techniques, including by bribing people to try search alternatives to see what they are like...

[A] group of academics — from Stanford University, the University of Pennsylvania and MIT — designed a novel experiment to try to figure out what might shake up Google's popularity. They recruited nearly 2,500 participants and remotely monitored their web searches on computers for months. The core of the experiment was paying some participants — most received $10 — to use Bing rather than Google for two weeks. After that period, the money stopped, and the participants had to pick either Bing or Google. The vast majority in the group of people who were paid to use Bing for 14 days chose to go back to Google once the payments stopped, suggesting a strong preference for Google even after trying an alternative. But a healthy number in that group — about 22 percent — chose Bing and were still using it many weeks later.

"I realized Bing was not as bad as I thought it was...." one study participant said — which an assistant professor in business economics and public policy at the University of Pennsylvania says is a nice summation of the study's findings.

"The researchers did not test other search engines," the article notes. But it also points out that more importantly: the research caught the attention of some government officials: Colorado Attorney General Phil Weiser (D), who is leading the group of states that sued Google alongside the Justice Department, said the research helped inspire a demand by the states to fix Google's search monopoly. They asked a judge to require Google to bankroll a consumer information campaign about web search alternatives, including "short-term incentive payments."
On the basis of that, the article suggests "you could soon be paid to try Microsoft Bing or another alternative."

And in the meantime, the reporter writes, "I encourage you to join me in a two-week (unpaid) experiment mirroring the research: Change your standard search engine to something other than Google and see whether you like it. (And drop me a line to let me know how it went.) I'm going with DuckDuckGo, a privacy-focused web search engine that uses Bing's technology."
Businesses

Comcast President Bemoans Broadband Customer Losses: 'We Are Not Winning' (arstechnica.com) 61

An anonymous reader quotes a report from Ars Technica: Comcast executives apparently realized something that customers have known and complained about for years: The Internet provider's prices aren't transparent enough and rise too frequently. This might not have mattered much to cable executives as long as the total number of subscribers met their targets. But after reporting a net loss of 183,000 residential broadband customers in Q1 2025, Comcast President Mike Cavanagh said the company isn't "winning in the marketplace" during an earnings call today. The Q1 2025 customer loss was over three times larger than the net loss in Q1 2024.

While customers often have few viable options for broadband and the availability of alternatives varies widely by location, Comcast faces competition from fiber and fixed wireless ISPs. "In this intensely competitive environment, we are not winning in the marketplace in a way that is commensurate with the strength of the network and connectivity products that I just described," Cavanagh said. "[Cable division CEO] Dave [Watson] and his team have worked hard to understand the reasons for this disconnect and have identified two primary causes. One is price transparency and predictability and the other is the level of ease of doing business with us. The good news is that both are fixable and we are already underway with execution plans to address these challenges." [...]

Cavanagh said that Comcast plans to make changes in marketing and operations "with the highest urgency." This means that "we are simplifying our pricing construct to make our price-to-value proposition clearer to consumers across all broadband segments," he said. Comcast last week announced a five-year price guarantee for broadband customers who sign up for a new package. Comcast said customers will get a "simple monthly price starting as low as $55 per month," without having to enter a contract, giving them "freedom and flexibility to cancel at any time without penalty." The five-year guarantee also comes with one year of Xfinity Mobile at no charge, Comcast said. [...] Additional offers are in the works, Cavanagh said. "We are not done. Providing more value to our customers with less complexity and friction is a top priority and you will see our go-to-market approach continue to evolve over the coming months," he said. Comcast investors shouldn't expect an immediate turnaround, though. "We anticipate that it will take several quarters for our new approach to gain traction and impact the business in a meaningful way," Cavanagh said.

Bitcoin

Swiss National Bank Chairman Rebuffs Bitcoin as Reserve Asset (reuters.com) 41

The head of the Swiss National Bank said on Friday that cryptocurrencies failed to meet the institution's currency reserve standards, rebuffing calls by crypto advocates that it hold bitcoin as a hedge against growing global economic risks. From a report: Cryptocurrency campaigners are ramping up pressure on the SNB to buy bitcoin, arguing that the economic turmoil triggered by U.S. President Donald Trump's tariffs made it more important for the central bank to diversify its reserves. They have launched a referendum campaign to change the Swiss constitution and require the SNB to hold bitcoin in its reserves alongside gold. SNB Chairman Martin Schlegel, however, rejected the idea at the central bank's shareholder meeting in Bern.
Transportation

Waymo Reports 250,000 Paid Robotaxi Rides Per Week In US (cnbc.com) 39

Waymo is now providing over 250,000 paid robotaxi rides per week in the U.S., up from 200,000 in February, as it expands into cities like Austin and grows partnerships with Uber and automakers. CNBC reports: "We can't possibly do it all ourselves," said Pichai on a call with analysts for Alphabet's first-quarter earnings. Pichai noted that Waymo has not entirely defined its long-term business model, and there is "future optionality around personal ownership" of vehicles equipped with Waymo's self-driving technology. The company is also exploring the ways it can scale up its operations, he said.

The 250,000 paid rides per week are up from 200,000 in February, before Waymo opened in Austin and expanded in the San Francisco Bay Area in March. Waymo, which is part of Alphabet's Other Bets segment, is already running its commercial, driverless ride-hailing services in the San Francisco, Los Angeles, Phoenix and Austin regions.

Businesses

You'll Soon Manage a Team of AI Agents, Says Microsoft's Work Trend Report (zdnet.com) 56

ZipNada shares a report from ZDNet: Microsoft's latest research identifies a new type of organization known as the Frontier Firm, where on-demand intelligence requirements are managed by hybrid teams of AI agents and humans. The report identified real productivity gains from implementing AI into organizations, with one of the biggest being filling the capacity gap -- as many as 80% of the global workforce, both employees and leaders, report having too much work to do, but not enough time or energy to do it. ... According to the report, business leaders need to separate knowledge workers from knowledge work, acknowledging that humans who can complete higher-level tasks, such as creativity and judgment, should not be stuck answering emails. Rather, in the same way working professionals say they send emails or create pivot tables, soon they will be able to say they create and manage agents -- and Frontier Firms are showing the potential possibilities of this approach. ... "Everyone will need to manage agents," said Cambron. "I think it's exciting to me to think that, you know, with agents, every early-career person will be able to experience management from day one, from their first job."
Privacy

Employee Monitoring App Leaks 21 Million Screenshots In Real Time (cybernews.com) 31

An anonymous reader quotes a report from Cybernews: Researchers at Cybernews have uncovered a major privacy breach involving WorkComposer, a workplace surveillance app used by over 200,000 people across countless companies. The app, designed to track productivity by logging activity and snapping regular screenshots of employees' screens, left over 21 million images exposed in an unsecured Amazon S3 bucket, broadcasting how workers go about their day frame by frame. The leaked data is extremely sensitive, as millions of screenshots from employees' devices could not only expose full-screen captures of emails, internal chats, and confidential business documents, but also contain login pages, credentials, API keys, and other sensitive information that could be exploited to attack businesses worldwide. After the company was contacted, access to the unsecured database was secured. An official comment has yet to be received.
AI

AI Compute Costs Drive Shift To Usage-Based Software Pricing (businessinsider.com) 25

The software-as-a-service industry is undergoing a fundamental transformation, abandoning the decades-old "per seat" licensing model in favor of usage-based pricing structures. This shift, Business Insider reports, is primarily driven by the astronomical compute costs associated with new "reasoning" AI models that power modern enterprise software.

Unlike traditional generative AI, these reasoning models execute multiple computational loops to check their work -- a process called inference-time compute -- dramatically increasing token usage and operational expenses. OpenAI's o3-high model reportedly consumes 1,000 times more tokens than its predecessor, with a single benchmark response costing approximately $3,500, according to Barclays.

Companies including Bolt.new, Vercel, and Monday.com have already implemented usage-based or hybrid pricing models that tie costs directly to AI resource consumption. ServiceNow maintains primarily seat-based pricing but has added usage meters for extreme cases. "When it goes beyond what we can credibly afford, we have to have some kind of meter," ServiceNow CEO Bill McDermott said, while emphasizing that customers "still want seat-based predictability."

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