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Google

Ex-Googlers Discover That Startups Are Hard 61

Dozens of former AI researchers from Google who struck out on their own are learning that startups are tricky. The Information: The latest example is French AI agent developer H, which lost three of its five cofounders (four of whom are ex-Googlers) just months after announcing they had raised $220 million from investors in a "seed" round, as our colleagues reported Friday. The founders had "operational and business disagreements," one of them told us.

The drama at H follows the quasi-acquisitions of Inflection, Adept and Character, which were each less than three years old and founded mostly by ex-Google AI researchers. Reka, another AI developer in this category, was in talks to be acquired by Snowflake earlier this year. Those talks, which could have valued the company at $1 billion, fell apart in May. AI image developer Ideogram, also cofounded by four ex-Googlers, has spoken with at least one later-stage tech startup about potential sale opportunities, though the talks didn't seem to go anywhere, according to someone involved in the discussions.

Cohere, whose CEO co-authored a seminal Google research paper about transformers with Noam Shazeer, the ex-CEO of Character, has also faced growing questions about its relatively meager revenue compared to its rivals. For now, though, it has a lot of money in the bank. Has someone put a curse on startups founded by ex-Google AI researchers?
Television

Samsung TVs Will Get 7 Years of Free Tizen OS Upgrades (businesskorea.co.kr) 95

Samsung Electronics said it will provide Tizen OS updates for its newer TVs for at least seven years, starting with models released in March this year and some 2023 models. Business Korea reports: [Yoon Seok-woo, President of Samsung Electronics' Visual Display Business Division] emphasized that the seven-year free upgrade for Tizen applied to AI TVs would help Samsung widen the market share gap with Chinese competitors. Tizen, an in-house developed OS, has been applied to over 270 million Samsung smart TVs as of last year, making it the world's largest smart TV platform and a key player in leading the Internet of Things (IoT) era. "AI TV will act as the hub of the AI home, connecting other AI appliances like refrigerators and air conditioners," Yoon explained. "We will expand the AI home era by enabling users to monitor and control peripheral devices through the TV even when it is off or when the user is away." This connectivity is a key differentiator from Chinese competitors, according to Yoon.

In the first half of this year, Samsung Electronics maintained the top spot in the global TV market with a 28.8% market share by revenue. However, the combined market share of Chinese companies TCL and Hisense has reached 22.1%, indicating fierce competition.

The Internet

Ikea Takes On Craigslist With Classifieds Site For Its Used Furniture (arstechnica.com) 40

An anonymous reader quotes a report from the Financial Times: Ikea is taking on the likes of eBay, Craigslist, and Gumtree with a peer-to-peer marketplace for customers to sell secondhand furniture to each other. Ikea Preowned will be tested in Madrid and Oslo until the end of the year with the aim of rolling out the buying and selling platform globally, according to Jesper Brodin, chief executive of Ingka, the main operator of Ikea stores. [...] Ikea has had a small offering under which it buys used furniture from customers and resells it in store. But the new platform is more ambitious, aiming to tackle the secondhand market for customers selling directly to each other -- an area where Brodin estimates Ikea has a higher market share than in new furniture sales. Customers enter their product, their own pictures, and a selling price, while Ikea's own artificial intelligence-enabled database brings in its own promotional images and measurements. The buyer collects the furniture directly from the seller, who has the option of receiving money or a voucher from Ikea with a 15 percent bonus.

"Very often there is a monopoly or oligopoly on platforms that operate," said Brodin, talking about eBay or digital classified ad services such as Gumtree in the UK and Finn in Norway. Finn has 8,700 items from Ikea listed in Oslo alone. Early offerings on Ikea Preowned include large items such as sofas for up to $670 (600 euros) and wardrobes for $500 (450 euros) as well as smaller items such as a toilet roll holder for $4.50 (4 euros). Listings are free, but Brodin said Ikea could eventually charge "a symbolic fee, a humble fee." He added: "We're going to verify the full scope including the economics. If a lot of people use the offer to get a discount with Ikea -- it's a good way to reconnect with customers. I am very curious. I think it makes business sense." Ikea has previously tested selling its new furniture on third-party platforms such as Alibaba's Tmall in China, but the Preowned platform marks its first foray into secondhand marketplaces. It also dovetails with the retailer's wish to become "circular and climate positive" by 2030.

Businesses

Internal AWS Sales Guidelines Spread Doubt About OpenAI's Capabilities (businessinsider.com) 14

An anonymous reader shares a report: OpenAI lacks advanced security and customer support. It's just a research company, not an established cloud provider. The ChatGPT-maker is not focused enough on corporate customers. These are just some of the talking points Amazon Web Services' salespeople are told to follow when dealing with customers using, or close to buying, OpenAI's products, according to internal sales guidelines obtained by Business Insider. Other talking points from the documents include OpenAI's lack of access to third-party AI models and weak enterprise-level contracts. AWS salespeople should dispel the hype around AI chatbots like ChatGPT, and steer the conversation toward AWS's strength of running the cloud infrastructure behind popular AI services, the guidelines added.

[...] The effort to criticize OpenAI is also unusual for Amazon, which often says it's so customer-obsessed that it pays little attention to competitors. This is the latest sign that suggests Amazon knows it has work to do to catch up in the AI race. OpenAI, Microsoft, and Google have taken an early lead and could become the main platforms where developers build new AI products and tools. Though Amazon created a new AGI team last year, the company's existing AI models are considered less powerful than those made by its biggest competitors. Instead, Amazon has prioritized selling AI tools like Bedrock, which gives customers access to third-party AI models. AWS also offers cloud access to in-house AI chips that compete with Nvidia GPUs, with mixed results so far.

Businesses

Telegram Says CEO Durov Has 'Nothing To Hide' (bbc.com) 79

Messaging app Telegram has said its CEO Pavel Durov, who was detained in France on Saturday, has "nothing to hide." From a report: Mr Durov was arrested at an airport north of Paris under a warrant for offences related to the app, according to officials. The investigation is reportedly about insufficient moderation, with Mr Durov accused of failing to take steps to curb criminal uses of Telegram. The app is accused of failure to co-operate with law enforcement over drug trafficking, child sexual content and fraud.

Telegram said in a statement that "its moderation is within industry standards and constantly improving." The app added: "It is absurd to claim that a platform or its owner are responsible for abuse of that platform." Telegram said Mr Durov travels in Europe frequently and added that it abides by European Union laws, including the Digital Services Act, which aims to ensure a safe and accountable online environment. "Almost a billion users globally use Telegram as means of communication and as a source of vital information," the app's statement read. "We're awaiting a prompt resolution of this situation. Telegram is with you all." Judicial sources quoted by AFP news agency say Mr Durov's detention was extended on Sunday and could last as long as 96 hours.

Space

Boeing, Lockheed Martin Consider Selling ULA Space Launch Business (yahoo.com) 62

This weekend NASA said they'd turn to SpaceX to return two astronauts from the International Space Station, notes the Associated Press, "rather than risk using the Boeing Starliner capsule that delivered them." (They add that Boeing's capsule "has been plagued by problems with its propulsion system.")

But Reuters reported that even before the setback, Boeing and Lockheed Martin were "in talks to sell their rocket-launching joint venture United Launch Alliance to Sierra Space, two people familiar with the discussions said." A deal to sell ULA, a major provider of launch services to the U.S. government and a top rival to Elon Musk's SpaceX, would mark a significant shift in the U.S. space launch industry as ULA separates from two of the largest defense contractors to a smaller, privately held firm.

The potential sale comes after years of speculation about ULA's future and failed attempts to divest the joint venture over the past decade. In 2019, Boeing and Lockheed Martin reportedly explored selling ULA but couldn't agree on terms with potential buyers... Jeff Bezos' Blue Origin and Cerberus Capital Management had placed bids in early 2023 for the company, according to people familiar with the negotiations. Rocket Lab had also expressed interest, two people said. None of those discussions led to a deal...

A potential deal could accelerate deployment of [Sierra Space's] crewed spaceflight business, analysts said. A ULA acquisition, they said, would give the company in-house access to launch vehicles that could send its spaceplane and space-station components into Earth's orbit, rather than spending hundreds of millions of dollars for those launches as a customer...

ULA has faced challenges in scaling Vulcan production and upping its launch rate to meet commercial demand and fulfill contract obligations with the Space Force, which in 2021 picked Vulcan for a sizable chunk of national security missions alongside SpaceX's Falcon fleet. A sale of ULA would unshackle the company from Boeing and Lockheed, whose boards have long resisted ideas from ULA to expand the business beyond rockets and into new competitive markets such as lunar habitats or maneuverable spacecraft, according to former executives.

While Reuters's sources say the negotiations could still end without a deal, they also said ULA could be valued between $2 billion and $3 billion, giving Boeing some cash while shifting its focus to its core businesses of aerospace and defense.

Thanks to long-time Slashdot reader schwit1 for sharing the news.
Google

'Don't Trust Google for Customer Service Numbers. It Might Be a Scam.' (msn.com) 52

Google may be the most successful company in the world. But a Washington Post reporter argues that Google "makes you largely responsible for dodging the criminals who are hurting legitimate businesses and swindling people." On Monday, I found what appeared to be impostors of customer service for Delta and Coinbase, the cryptocurrency company, in the "People also ask" section high up in Google. A group of people experienced in Google's intricacies also said this week that it took about 22 minutes to fool Google into highlighting a bogus business phone number in a prominent spot in search results...

If you look at the two impostor phone numbers in Google for Delta and Coinbase, there are red flags. There are odd fonts and a website below the bogus numbers that wasn't for either company. (I notified Google about the apparent scams on Monday and I still saw them 24 hours later.) The correct customer help numbers did appear at the very top, and Google says businesses have clear instructions to make their customer service information visible to people searching Google.

The larger issue is "a persistent pattern of bad guys finding ways to trick Google into showing scammers' numbers for airlines, hotels, local repair companies, banks or other businesses." The toll can be devastating when people are duped by these bogus business numbers. Fortune recently reported on a man who called what a Google listing said was Coinbase customer support, and instead it was an impostor who Fortune said tricked the man and stole $100,000...

Most of the time, you will find correct customer service numbers by Googling. But the company doesn't say how often people are tricked out of time and money by bogus listings — nor why Google can't stop the scams from recurring.

The article makes two points.
  • Google says when they identify listings violating their rules, they move quickly against them.

Crime

Sam Bankman-Fried Didn't Have 'Character of a Thief', Argues Author Michael Lewis (decrypt.co) 95

An anonymous reader shared this story from the blog Decrypt: Michael Lewis, author of Going Infinite, an account of the rise and fall of Sam Bankman-Fried, has argued that the disgraced FTX founder didn't have "the character of a thief" in a new The Washington Post article. "His crime was of a piece with his character. The character wasn't the character of a thief. It was the character of a person numb to risk." Lewis explained in the final paragraphs of a 4,500 word essay adapted from a new introduction to his book. "Unable to feel risk himself, he can't really imagine other people feeling much at all about the risk he has subjected them to...."

Lewis doubled down on previous claims that Bankman-Fried wasn't running a Ponzi scheme, arguing that "The crime was unnecessary to the business in a way that, say, Bernie Madoff's was not," and that "The crime made no sense." The collapse of FTX, he added, "might have been avoided and FTX might have survived."

"That doesn't mean I think that Sam Bankman-Fried is innocent. It merely informs how I feel about him," Lewis explained. "I think the truth is closer to 'young person with an intellectually defensible but socially unacceptable moral code makes a huge mistake in trying to live by it' than "criminal on the loose in the financial system.'"

From from The Daily Beast: Lewis also pointed to bankruptcy court filings from FTX in the weeks after Bankman-Fried's sentencing showing that "against the $8.7 billion in missing customer deposits, FTX was now sitting on something like $14.5 to $16.3 billion." "Whatever the exact sum, it was enough to repay all depositors and various other creditors at least 118 cents on the dollar — that is, everyone who imagined they had lost money back in November 2022 would get their money back, with interest," Lewis writes.
Michael Lewis's article offers some vivid details: Inside of three years, he'd gone from socially and emotionally isolated 25-year-old with an upper-middle-class bank account to leader of a small army of math nerds and (according to Forbes magazine) not merely the world's richest person under 30 but maybe the fastest creator of wealth in recorded history... He'd gone from having no friends as a child to having too many as an adult without ever developing a capacity for friendship....

The prosecutors didn't need Sam's help. Sam helped them anyway by ignoring the counsel of his lawyers and testifying on his own behalf... As Lewis Kaplan, the federal judge who presided over the case, said later: "When he wasn't outright lying, he was often evasive, hairsplitting, dodging questions and trying to get the prosecutor to reword questions in ways that he could answer in ways he thought less harmful than a truthful answer to the question that was posed would have been. I've been doing this job for close to 30 years. I've never seen a performance quite like that...." [T]he judge ordered Sam to rise so that he might address him directly. Two hours or so earlier, Sam had shuffled into the courtroom in prison khakis with his head down and his hands oddly clasped behind his back. Just before he'd entered, his guards had told him he was meant to be wearing handcuffs and asked if he could create the impression that he was doing so...

"There is a risk that this man will be in a position to do something very bad in the future, and it's not a trivial risk, not a trivial risk at all," said the judge. "So, in part, my sentence will be for the purpose of disabling him." He then sentenced Sam to 25 years in prison, with no possibility of parole.

A few minutes later, Sam dutifully clasped his hands behind his back and shuffled out of the courtroom.

Lewis adapted his 4,500-word article from the upcoming (updated) paperback edition of his book — which was originally published in 2023 on the same day jurors were selected for Bankman-Fried's trial...
Transportation

Ford Cancels Electric SUV, Delays EV Pickup (cnbc.com) 277

Volkswagen said this week it would wait to see where EV demand goes before building out the last three of its six planned battery factories. And now Ford has also cancelled its planned electric SUV and delayed production of an all-new electric pickup, according to CNBC, moves Ford now believes could cost up to $1.9 billion.

But Ford isn't giving up. Ford's COO told CNBC Thursday that "We're quite convinced that the highest adoption rates for electric vehicles will be in the affordable segment on the lower size-end of the range." Instead of the three-row SUV or large pickup, the company's first new EV is expected to be a commercial van in 2026, followed the next year by a midsized pickup and then the T3 full-size pickup... And the midsize pickup is scheduled to be the first vehicle from a specialized "skunkworks" team in California. The company had tasked the team two years ago with developing a new small EV platform... "In ICE, a business we've been in for 120 years, the bigger the vehicle, the higher the margin. But it's exactly the opposite for EVs...."

Ford's current EVs — the Mustang Mach-E crossover, F-150 Lightning and a commercial van in the U.S. — are not profitable overall. The Model e operations have lost nearly $2.5 billion during the first half of this year and lost $4.7 billion in 2023. The losses, as well as changing market conditions and business plans, caused Ford earlier this year to withdraw an ambitious 8% profit margin for its EV unit by 2026.

Investors and Wall Street analysts have largely supported the EV changes, most recently sending the company's shares up about 2.3% since the announcement earlier this week, despite the expected costs. "Overall, these changes will position Ford to benefit from growing demand for EVs, while also focusing on areas in which it has a Core competitive advantage," BofA's John Murphy wrote Wednesday in an investor note... The updates are the latest for Ford's electrification plans, which now include a heavy focus on hybrid and plug-in hybrid electric vehicles, or PHEVs, to assist in meeting tightening fuel economy regulations in addition to all-electric vehicles. Ford CFO John Lawler said Wednesday that the company's future capital expenditure plans will shift from spending about 40% on all-electric vehicles to spending 30%... "What we saw in '21 and '22 was a temporary market spike where the demand for EVs really took off," Gjaja told CNBC during an interview earlier this year. "It's still growing but not nearly at the rate we thought it might have in '21, '22."

The article also points out that while Ford is discontinuing its giant electric SUV, Ford's rival GM is doing exactly the opposite: America's largest automaker has pulled back spending and delayed many of its EVs, but it has several large all-electric vehicles on sale coming soon... As recently as last month, GM reconfirmed expectations for its EVs to be profitable on a production, or contribution-margin basis, once it reaches output of 200,000 units by the fourth quarter. A GM spokesman Thursday said the automaker continues "to work to reach variable profit positive during the fourth quarter."
The article also notes "an industrywide fear that Chinese automakers could be able to flood markets with cheaper, more profitable EVs," with Chinese automakers like BYD "quickly growing exports of vehicles to Europe and other countries..."
Social Networks

How Reddit Challenges Google and Meta with Ads Based on Topics - Not User Data (yahoo.com) 47

Six months after going public, Reddit "is winning over advertisers," reports Bloomberg, "by showing that it's different than other internet platforms, which often rely on users' identities and personal information to target ads." Instead, Reddit is targeting people based on their interests, relying on the site's [100,000+] deeply detailed communities — called subreddits — to match advertisers with potential customers... Early returns on that strategy have been promising. The text-based site easily surpassed expectations in its first two earnings reports this year, disclosing strong sales and better-than-expected projected growth. The stock is up 66% from its $34 initial public offering price in March.

Beyond targeting subreddits, the company also can use specific keywords to sell what it calls conversation ads. If a Redditor in r/HydroHomies — a community about the benefits of drinking water that has more than 1.2 million users — asks for advice about a specific brand of water bottle, an ad for that exact product could appear next to that user's post. These conversation ads are the fastest-growing ad format on the platform, the company said. They also give marketers a chance to appear in subreddits where customers are already talking about them...

Despite being around for close to 20 years, Reddit only started investing heavily in its advertising business in 2018, and is now hoping that marketers and investors are ready to acknowledge the site has grown up. Executives often point to its unique form of content moderation as proof that it's a safer place for brands than other sites. Reddit largely relies on a group of more than 60,000 human moderators — users who volunteer to serve as a sort of content police — to flag or take down unsavory content. On top of that, the site has a voting system so users can rate the quality of content. "From everything we're seeing, they have a level of brand safety and content safety for advertisers that is very comparable to most other social platforms," said Jack Johnston, senior social innovation director at performance marketing agency Tinuiti, which buys ads on Meta, Pinterest, X and Reddit. "That wasn't necessarily the case a couple years ago."

Those improvements have paid dividends. Reddit recently signed new content partnerships with major sports leagues, including the NFL, NBA and MLB, and the majority of Reddit's advertising revenue comes from Fortune 500 companies. Last year, the site made close to $800 million in ad sales, and counts marquee brands like Toyota, Disney, Samsung and Ulta Beauty among its advertisers. This year, analysts expect Reddit's overall advertising business to eclipse $1.1 billion in revenue and see the company reaching $2 billion in sales as soon as 2027, according to data compiled by Bloomberg. To get there, Reddit will need to court smaller marketers, too. The company makes more than 25% of its revenue from just 10 advertisers, meaning any unexpected pullback from a key partner could have a significant impact on the company's business, said Dan Salmon, lead analyst at New Street Research. "This army of small businesses — that's the most important thing for all of those platforms, for Reddit, for Pinterest, for X," he said...

Advertisers large and small say they're already planning to spend more on Reddit in the coming quarters.

The article points out that more than 90 million people visit Reddit each day.
Programming

Amazon CEO: AI-Assisted Code Transformation Saved Us 4,500 Years of Developer Work (x.com) 130

Long-time Slashdot reader theodp shared this anecdote about Amazon's GenAI assistant for software development, Amazon Q: On Thursday, Amazon CEO Andy Jassy took to Twitter to boast that using Amazon Q to do Java upgrades has already saved Amazon from having to pay for 4,500 developer-years of work. ("Yes, that number is crazy but, real," writes Jassy). And Jassy says it also provided Amazon with an additional $260M in annualized efficiency gains from enhanced security and reduced infrastructure costs.

"Our developers shipped 79% of the auto-generated code reviews without any additional changes," Jassy explained. "This is a great example of how large-scale enterprises can gain significant efficiencies in foundational software hygiene work by leveraging Amazon Q."

Jassy — who FORTUNE reported had no formal training in computer science — also touted Amazon Q's Java upgrade prowess in his Letter to Shareholders earlier this year, as has Amazon in its recent SEC filings ("today, developers can save months using Q to move from older versions of Java to newer, more secure and capable ones; in the near future, Q will help developers transform their .net code as well"). Earlier this week, Business Insider reported on a leaked recording of a fireside chat in which AWS CEO Matt Garman predicted a paradigm shift in coding as a career in the foreseeable future with the prevalence of AI. According to Garman, "If you go forward 24 months from now, or some amount of time — I can't exactly predict where it is — it's possible that most developers are not coding."

United Kingdom

RFA Explains How Its UK Rocket Engine Test Led to Monday's Spectacular Explosion (theguardian.com) 13

Monday brought spectacular footage of an explosion at a UK rocket test site after an engine test went awry. The plan had been to test-fire all of a rocket stage's nine engines at the same time — they've successfully ignited them more than a hundred times — but this time one of the first eight had an "unusual" anomaly — "most likely a fire in the oxygen pump," according to a video posted by space company RFA on X.com.

The trouble "spread onto neighboring engines," eventually leading to a billowing jet of fire from the side of the vehicle. ("The engine-propellant manifold system was damaged to such a great extent that kerosene kept fueling the fire.")

Slashdot reader AleRunner writes: A rocket company has vowed to return to regular operations "as soon as possible" after an explosion during a test at the UK's new spaceport in Shetland. The explosion happened after "an "anomaly" had led to "the loss of the stage" — but there were no injuries according to a Guardian report. The test was carried out by German company Rocket Factory Augsburg which hopes to make the first UK vertical rocket launch into orbit... "We develop iteratively with an emphasis on real testing.
"This is part of our philosophy and we were aware of the higher risks attached to this approach. Our goal is to return to regular operations as soon as possible."

"In true RFA fashion, we're being as transparent as possible," the company posted Friday on X.com, "and sharing our own raw footage of the incident." The day of the explosion they'd posted that "The launch pad has been saved and is secured," and Friday posted that six-minute video explaining what happened. (It emphasizes there's an improved version of this stage that's already been built.)

The Guardian added that the explosion comes three months after RFA's successful 8-second test firing of its rocket engines — the spaceport's first rocket test.
Transportation

As EV Sales Slump, Volkswagen Scales Back Battery Factories Buildout (arstechnica.com) 141

An anonymous reader quotes a report from Ars Technica: Volkswagen will wait to see what electric car demand is like before building out all six of its previously planned battery factories. Thomas Schmall, VW's board member in charge of technology, told a German newspaper that "building battery cell factories is not an end to itself" and that a goal of 200 GWh of lithium-ion cells by 2030 was not set in stone. [...] For VW, the previous goal of 200 GWh by 2030 from six factories (through a new subsidiary called PowerCo) could now be just 170 GWh capacity from three already-announced plants in Valencia, Spain; Ontario, Canada; and Salzgitter, Germany. If necessary, Schmall said that the Spanish and Canadian battery factories could be expanded to meet additional demand. This battery news follows another sign of slowing confidence in EVs at VW. Last week, it emerged that the company has pushed back plans for the ID.4's successor, which now may not see showrooms until 2032.
Social Networks

Families Can Sue App Developer For Breaking Its Anti-Bullying Pledge, Says Court (theverge.com) 37

The Verge's Adi Robertson reports: An appeals court revived a lawsuit against the anonymous messaging service Yolo, which allegedly broke a promise to unmask bullies on the app. In a ruling (PDF) issued Thursday, the Ninth Circuit Court of Appeals said Section 230 of the Communications Decency Act shouldn't block a claim that Yolo misrepresented its terms of service, overruling a lower court decision. But it determined the app can't be held liable for alleged design defects that allowed harassment, letting a different part of that earlier ruling stand.

Yolo was a Snapchat-integrated app that let users send anonymous messages, but in 2021, it was hit with a lawsuit after a teenage user died by suicide. The boy, Carson Bride, had received harassing and sexually explicit messages from anonymized users that -- he believed -- he likely knew. Bride and his family attempted to contact Yolo for help, but Yolo allegedly never answered, and in some cases, emails to the company simply bounced. Snap banned Yolo and another app targeted in the lawsuit, and a year later, it banned all anonymous messaging integration. Bride's family and a collection of other aggrieved parents argued that Yolo broke a legally binding promise to its users. They pointed to a notification where Yolo claimed people would be banned for inappropriate use and deanonymized if they sent "harassing messages" to others. But as the ruling summarizes, the plaintiffs argued that "with a staff of no more than ten people, there was no way Yolo could monitor the traffic of ten million active daily users to make good on its promise, and it in fact never did." Additionally, they claimed Yolo should have known its anonymous design facilitated harassment, making it defective and dangerous.

A lower court threw out both of these claims, saying that under Section 230, Yolo couldn't be held responsible for its users' posts. The appeals court was more sympathetic. It accepted the argument that families were instead holding Yolo responsible for promising users something it couldn't deliver. "Yolo repeatedly informed users that it would unmask and ban users who violated the terms of service. Yet it never did so, and may have never intended to," writes Judge Eugene Siler, Jr. "While yes, online content is involved in these facts, and content moderation is one possible solution for Yolo to fulfill its promise, the underlying duty ... is the promise itself." The Yolo suit built on a previous Ninth Circuit ruling that let another Snap-related lawsuit circumvent Section 230's shield. In 2021, it found Snap could be sued for a "speed filter" that could implicitly encourage users to drive recklessly, even if users were responsible for making posts with that filter. (The overall case is still ongoing.) On top of their misrepresentation claim, the plaintiffs argued Yolo's anonymous messaging capability was similarly risky, an argument the Ninth Circuit didn't buy -- "we refuse to endorse a theory that would classify anonymity as a per se inherently unreasonable risk," Siler wrote.

The Military

Workers at Google DeepMind Push Company to Drop Military Contracts (time.com) 143

Nearly 200 Google DeepMind workers signed a letter urging Google to cease its military contracts, expressing concerns that the AI technology they develop is being used in warfare, which they believe violates Google's own AI ethics principles. "The letter is a sign of a growing dispute within Google between at least some workers in its AI division -- which has pledged to never work on military technology -- and its Cloud business, which has contracts to sell Google services, including AI developed inside DeepMind, to several governments and militaries including those of Israel and the United States," reports TIME Magazine. "The signatures represent some 5% of DeepMind's overall headcount -- a small portion to be sure, but a significant level of worker unease for an industry where top machine learning talent is in high demand." From the report: The DeepMind letter, dated May 16 of this year, begins by stating that workers are "concerned by recent reports of Google's contracts with military organizations." It does not refer to any specific militaries by name -- saying "we emphasize that this letter is not about the geopolitics of any particular conflict." But it links out to an April report in TIME which revealed that Google has a direct contract to supply cloud computing and AI services to the Israeli Military Defense, under a wider contract with Israel called Project Nimbus. The letter also links to other stories alleging that the Israeli military uses AI to carry out mass surveillance and target selection for its bombing campaign in Gaza, and that Israeli weapons firms are required by the government to buy cloud services from Google and Amazon.

"Any involvement with military and weapon manufacturing impacts our position as leaders in ethical and responsible AI, and goes against our mission statement and stated AI Principles," the letter that circulated inside Google DeepMind says. (Those principles state the company will not pursue applications of AI that are likely to cause "overall harm," contribute to weapons or other technologies whose "principal purpose or implementation" is to cause injury, or build technologies "whose purpose contravenes widely accepted principles of international law and human rights.") The letter says its signatories are concerned with "ensuring that Google's AI Principles are upheld," and adds: "We believe [DeepMind's] leadership shares our concerns." [...]

The letter calls on DeepMind's leaders to investigate allegations that militaries and weapons manufacturers are Google Cloud users; terminate access to DeepMind technology for military users; and set up a new governance body responsible for preventing DeepMind technology from being used by military clients in the future. Three months on from the letter's circulation, Google has done none of those things, according to four people with knowledge of the matter. "We have received no meaningful response from leadership," one said, "and we are growing increasingly frustrated."

Businesses

Labor Board Confirms Amazon Drivers Are Employees, In Finding Hailed By Union (arstechnica.com) 67

An anonymous reader quotes a report from Ars Technica: Amazon may be forced to meet some unionized delivery drivers at the bargaining table after a regional National Labor Relations Board (NLRB) director determined Thursday that Amazon is a joint employer of contractors hired to ensure the e-commerce giant delivers its packages when promised. This seems like a potentially big loss for Amazon, which had long argued that delivery service partners (DSPs) exclusively employed the delivery drivers, not Amazon. By rejecting its employer status, Amazon had previously argued that it had no duty to bargain with driver unions and no responsibility for alleged union busting, The Washington Post reported.

But now, after a yearlong investigation, the NLRB has issued what Amazon delivery drivers' union has claimed was "a groundbreaking decision that sets the stage for Amazon delivery drivers across the country to organize with the Teamsters." In a press release reviewed by Ars, the NLRB regional director confirmed that as a joint employer, Amazon had "unlawfully failed and refused to bargain with the union" after terminating their DSP's contract and terminating "all unionized employees." The NLRB found that rather than bargaining with the union, Amazon "delayed start times by grounding vans and not preparing packages for loading," withheld information from the union, and "made unlawful threats." Teamsters said those threats included "job loss" and "intimidating employees with security guards." [...]

Unless a settlement is reached, the NLRB will soon "issue a complaint against Amazon and prosecute the corporate giant at a trial" after finding that "Amazon engaged in a long list of egregious unfair labor practices at its Palmdale facility," Teamsters said. Apparently downplaying the NLRB determination, Amazon is claiming that the Teamsters are trying to "misrepresent what is happening here." Seemingly Amazon is taking issue with the union claiming that an NLRB determination on the merits of their case is a major win when the NLRB has yet to issue a final ruling. According to the NLRB's press release, "a merit determination is not a 'Board decision/ruling' -- it is the first step in the NLRB's General Counsel litigating the allegations after investigating an unfair labor practice charge."
Sean M. O'Brien, the Teamsters general president, claimed the win for drivers unionizing not just in California but for nearly 280,000 drivers nationwide.

"Amazon drivers have taken their future into their own hands and won a monumental determination that makes clear Amazon has a legal obligation to bargain with its drivers over their working conditions," O'Brien said. "This strike has paved the way for every other Amazon worker in the country to demand what they deserve and to get Amazon to the bargaining table."
Businesses

Amazon is Bricking Primary Feature on $160 Echo Device After 1 Year (arstechnica.com) 43

Amazon is canceling its PhotosPlus subscription service for the Echo Show 8 Photos Edition, effectively ending the device's main selling point. The company will automatically cancel all PhotosPlus subscriptions on September 12 and cease support for the service on September 23. The Echo Show 8 Photos Edition, launched in September 2023, allowed users to display personal photos indefinitely on the home screen for a $2 monthly fee.

Without PhotosPlus, the device will revert to showing ads and promotions after three hours, like standard Echo Show 8 models. Amazon spokesperson says that the Photos Edition was discontinued in March, citing regular product evaluations based on customer feedback. Users can still display photos on the device, but not indefinitely. The move has sparked criticism from customers who paid a $10 premium for ad-free photo display.
AI

AWS CEO Says Most Developers Could Stop Coding Soon as AI Takes Over 178

An anonymous reader shares a report: Software engineers may have to develop other skills soon as AI takes over many coding tasks. That's according to Amazon Web Services' CEO, Matt Garman, who shared his thoughts on the topic during an internal fireside chat held in June, according to a recording of the meeting obtained by Business Insider. "If you go forward 24 months from now, or some amount of time -- I can't exactly predict where it is -- it's possible that most developers are not coding," said Garman, who became AWS's CEO in June.

"Coding is just kind of like the language that we talk to computers. It's not necessarily the skill in and of itself," the executive said. "The skill in and of itself is like, how do I innovate? How do I go build something that's interesting for my end users to use?" This means the job of a software developer will change, Garman said. "It just means that each of us has to get more in tune with what our customers need and what the actual end thing is that we're going to try to go build, because that's going to be more and more of what the work is as opposed to sitting down and actually writing code," he said.
Businesses

Justice Department Sues RealPage, Alleging It Enabled Price-Fixing On Rents (cbsnews.com) 39

The Justice Department on Friday filed an antitrust lawsuit against RealPage, a property management software provider, alleging it enabled a collusion among landlords to inflate rents for millions of Americans. From a report: The complaint claims the Richardson, Texas-based company and its competitors engaged in a price-fixing scheme by sharing nonpublic, sensitive information, which RealPage's algorithmic pricing software used to generate pricing recommendations. The company replaced competition with rent coordination to the detriment of renters across the U.S., according to the suit, monopolizing the market through its revenue management software which was used by landlords to maximize rent costs.

The DOJ is joined by the attorneys general of California, Colorado, Connecticut, Minnesota, North Carolina, Oregon, Tennessee and Washington. The complaint alleges that RealPage violated sections 1 and 2 of the Sherman Act, an antitrust law. "Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law," Attorney General Merrick B. Garland said in a statement Friday.

"We allege that RealPage's pricing algorithm enables landlords to share confidential, competitively sensitive information and align their rents. Using software as the sharing mechanism does not immunize this scheme from Sherman Act liability, and the Justice Department will continue to aggressively enforce the antitrust laws and protect the American people from those who violate them."
Further reading:
Can the US Regulate Algorithm-Based Price Fixing on Rental Housing?;
Are We Entering an AI Price-Fixing Dystopia?;
Accused of Using Algorithms To Fix Rental Prices, RealPage Goes on Offensive;
Rent Going Up? One Company's Algorithm Could Be Why.
Microsoft

Microsoft Plans Windows Security Overhaul After CrowdStrike Outage 63

Microsoft is stepping up its plans to make Windows more resilient to buggy software [non-paywalled source] after a botched CrowdStrike update took down millions of PCs and servers in a global IT outage. Financial Times: The tech giant has in the past month intensified talks with partners about adapting the security procedures around its operating system to better withstand the kind of software error that crashed 8.5mn Windows devices on July 19. Critics say that any changes by Microsoft would amount to a concession of shortcomings in Windows' handling of third-party security software that could have been addressed sooner.

Yet they would also prove controversial among security vendors that would have to make radical changes to their products, and force many Microsoft customers to adapt their software. Last month's outages -- which are estimated to have caused billions of dollars in damages after grounding thousands of flights and disrupting hospital appointments worldwide -- heightened scrutiny from regulators and business leaders over the extent of access that third-party software vendors have to the core, or kernel, of Windows operating systems. Microsoft will host a summit next month for government representatives and cyber security companies, including CrowdStrike, to discuss "improving resiliency and protecting mutual customers' critical infrastructure," Microsoft said on Friday.

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