EU Wants To Require Platforms To Filter Uploaded Content (Including Code) ( 110

A new copyright proposal in the EU would require code-sharing platforms like GitHub and SourceForge to monitor all content that users upload for potential copyright infringement. "The proposal is aimed at music and videos on streaming platforms, based on a theory of a 'value gap' between the profits those platforms make from uploaded works and what copyright holders of some uploaded works receive," reports The GitHub Blog. "However, the way it's written captures many other types of content, including code."

Upload filters, also known as "censorship machines," are some of the most controversial elements of the copyright proposal, raising a number of concerns including: -Privacy: Upload filters are a form of surveillance, effectively a "general monitoring obligation" prohibited by EU law
-Free speech: Requiring platforms to monitor content contradicts intermediary liability protections in EU law and creates incentives to remove content
-Ineffectiveness: Content detection tools are flawed (generate false positives, don't fit all kinds of content) and overly burdensome, especially for small and medium-sized businesses that might not be able to afford them or the resulting litigation
Upload filters are especially concerning for software developers given that: -Software developers create copyrightable works -- their code -- and those who choose an open source license want to allow that code to be shared
-False positives (and negatives) are especially likely for software code because code often has many contributors and layers, often with different licensing for different components
-Requiring code-hosting platforms to scan and automatically remove content could drastically impact software developers when their dependencies are removed due to false positives
The EU Parliament continues to introduce new proposals for Article 13 but these issues remain. MEP Julia Reda explains further in a recent proposal from Parliament.

Largest US Radio Company iHeartMedia Files For Bankruptcy ( 159

The largest U.S. radio station owner, iHeartMedia, has filed for Chapter 11 bankruptcy as it "struggles with $20 billion in debt and falling revenue at its 858 radio stations," reports Reuters. The company has reportedly reached an agreement with holders of more than $10 billion of its outstanding debt for a balance sheet restructuring, which will reduce its debt by more than $10 billion. From the report: Cash on hand and cash generated from ongoing operations will be sufficient to fund the business during the bankruptcy process, said iHeartMedia, which owns Z100 in New York and Real 103.5 KISS FM in Chicago. The filing comes after John Malone's Liberty Media Corp proposed on Feb. 26 a deal to buy a 40 percent stake in a restructured iHeartMedia for $1.16 billion, uniting the company with Liberty's Sirius XM Holdings Inc satellite radio service. Clear Channel Outdoor Holdings Inc, a subsidiary of iHeartMedia, and its units did not commence Chapter 11 proceedings. The company had 14,300 employees at the end of 2016, according to its most recent annual report.

Can AMD Vulnerabilities Be Used To Game the Stock Market? ( 106

Earlier this week, a little-known security firm called CTS Labs reported, what it claimed to be, severe vulnerabilities and backdoors in some AMD processors. While AMD looks into the matter, the story behind the researchers' discovery and the way they made it public has become a talking point in security circles. The researchers, who work for CTS Labs, only reported the flaws to AMD shortly before publishing their report online. Typically, researchers give companies a few weeks or even months to fix the issues before going public with their findings. To make things even stranger, a little bit over 30 minutes after CTS Labs published its report, a controversial financial firm called Viceroy Research published what they called an "obituary" for AMD. Motherboard reports: "We believe AMD is worth $0.00 and will have no choice but to file for Chapter 11 (Bankruptcy) in order to effectively deal with the repercussions of recent discoveries," Viceroy wrote in its report. CTS Labs seemed to hint that it too had a financial interest in the performance of AMD stock. "We may have, either directly or indirectly, an economic interest in the performance of the securities of the companies whose products are the subject of our reports," CTS Labs wrote in the legal disclaimer section of its report.

On Twitter, rumors started to swirl. Are the researchers trying to make money by betting that AMD's share price will go down due to the news of the vulnerabilities? Or, in Wall Street jargon, were CTS Labs and Viceroy trying to short sell AMD stock? Security researcher Arrigo Triulzi speculated that Viceroy and CTS Lab were profit sharing for shorting, while Facebook's chief security officer Alex Stamos warned against a future where security research is driven by short selling.

[...] There's no evidence that CTS Labs worked with Viceroy to short AMD. But something like that has happened before. In 2016, security research firm MedSec found vulnerabilities in pacemakers made by St. Jude Medical. In what was likely a first, MedSec partnered with hedge fund Muddy Waters to bet against St. Jude Medical's stock. For Adrian Sanabria, director of research at security firm Threatcare and a former analyst at 451 Research, where he covered the cybersecurity industry, trying to short based on vulnerabilities just doesn't make much sense. While it could work in theory and could become more common in the future, he said in a phone call, "I don't think we've seen enough evidence of security vulnerabilities really moving the stock for it to really become an issue."
Further reading: Linus Torvalds slams CTS Labs over AMD vulnerability report (ZDNet).

How Amazon Became Corporate America's Nightmare ( 242

Zorro shares a report from Bloomberg that details Amazon's rapid growth in the last three years: Amazon makes no sense. It's the most befuddling, illogically sprawling, and -- to a growing sea of competitors -- flat-out terrifying company in the world. It sells soap and produces televised soap operas. It sells complex computing horsepower to the U.S. government and will dispatch a courier to deliver cold medicine on Christmas Eve. It's the third-most-valuable company on Earth, with smaller annual profits than Southwest Airlines Co., which as of this writing ranks 426th. Chief Executive Officer Jeff Bezos is the world's richest person, his fortune built on labor conditions that critics say resemble a Dickens novel with robots, yet he has enough mainstream appeal to play himself in a Super Bowl commercial. Amazon was born in cyberspace, but it occupies warehouses, grocery stores, and other physical real estate equivalent to 90 Empire State Buildings, with a little left over. The company has grown so large and difficult to comprehend that it's worth taking stock of why and how it's left corporate America so thoroughly freaked out. Executives at the biggest U.S. companies mentioned Amazon thousands of times during investor calls last year, according to transcripts -- more than President Trump and almost as often as taxes. Other companies become verbs because of their products: to Google or to Xerox. Amazon became a verb because of the damage it can inflict on other companies. To be Amazoned means to have your business crushed because the company got into your industry. And fear of being Amazoned has become such a defining feature of commerce, it's easy to forget the phenomenon has arisen mostly in about three years.

SEC Charges Theranos, CEO Elizabeth Holmes With 'Massive Fraud' ( 128

An anonymous reader quotes a report from Engadget: The SEC has charged Theranos, Elizabeth Holmes and Ramesh "Sunny" Balwani with fraud relating to the startup's fundraising activities. The company, as well as CEO Holmes and former president Balwani are said to have raised more than $700 million from investors through "an elaborate, years-long fraud." This involved making "false statements about the company's technology, business and financial performance." In a statement, the commission said that the company, and its two executives, misled investors about the capability of its blood testing technology. Theranos' big selling point was that its hardware could scan for a number of diseases with just a small drop of blood. Unfortunately, the company was never able to demonstrate that its system worked as well as its creators claimed.

The company and Elizabeth Holmes have already agreed to settle the charges leveled against them by the SEC. Holmes will have to pay a $500,000 fine and return 18.9 million shares in Theranos that she owned, as well as downgrading her super-majority equity into common stock. The CEO is now barred from serving as the officer or director of a public company for 10 years. In addition, if Theranos is liquidated or acquired, Holmes cannot profit from her remaining shareholding unless $750 million is handed back to defrauded investors. Balwani, on the other hand, is facing a federal court case in the Northern District of California where the SEC will litigate its claims against him.
Worth noting: the court still has to approve the deals between Holmes and Theranos, and neither party has admitted any wrongdoing.

Google Will Ban All Cryptocurrency-related Advertising ( 108

Google is cracking down on cryptocurrency-related advertising. From a report: The company is updating its financial services-related ad policies to ban any advertising about cryptocurrency-related content, including initial coin offerings (ICOs), wallets, and trading advice, Google's director of sustainable ads, Scott Spencer, told CNBC. That means that even companies with legitimate cryptocurrency offerings won't be allowed to serve ads through any of Google's ad products, which place advertising on its own sites as well as third-party websites. This update will go into effect in June 2018, according to a company post. "We don't have a crystal ball to know where the future is going to go with cryptocurrencies, but we've seen enough consumer harm or potential for consumer harm that it's an area that we want to approach with extreme caution," Scott said.

How Your Returns Are Used Against You At Best Buy, Other Retailers ( 201

An anonymous reader quotes a report from The Wall Street Journal (Warning: source may be paywalled; alternative source): At Best Buy, returning too many items within a short time can hurt a person's score, as can returning high-theft items such as digital cameras. Every time shoppers returns purchases to Best Buy, they are tracked by a company which has the power to override the store's touted policy and refuse to refund their money. That is because the electronics giant is one of several chains that have hired a service called The Retail Equation to score customers' shopping behavior and impose limits on the amount of merchandise they can return. Stores have long used generous return guidelines to lure more customers, but such policies also invite abuse. Retailers estimate 11% of their sales are returned, and of those, 11% are likely fraudulent returns, according to a 2017 survey of 63 retailers by the National Retail Federation. Return fraud or abuse occurs when customers exploit the return process, such as requesting a refund for items they have used, stolen or bought somewhere else. Inc. and other online players that have made it easy to return items have changed consumer expectations, adding pressure on brick-and-mortar chains. Some retailers monitor return fraud in-house, but Best Buy and others pay The Retail Equation to track and score each customer's return behavior for both in-store and online purchases. The service also works with Home Depot, J.C. Penney, Sephora and Victoria's Secret. Some retailers use the system only to assess returns made without a receipt. Best Buy uses The Retail Equation to assess all returns, even those made with a receipt.


A Chatbot Can Now Offer You Protection Against Volatile Airline Prices ( 24

The same bot, DoNotPay, that helped users overturn parking tickets and sue Equifax for small sums of money is now offering you protection against volatile airline prices. The Verge reports: Joshua Browder, a junior at Stanford University, designed the new service on the bot in a few months, after experiencing rapidly fluctuating airline prices when flying to California during the wildfires last year. "It annoyed me that every single flight, I could be paying sometimes double or even triple the person next to me in the same type of seat," he told The Verge. Browder first used the service himself and then tested it among his friends in a closed beta. He claims that the average amount saved among the beta testers is $450 a year, though it's not clear how many flights were booked and how much they cost. The service is available to the public starting today. To use it, log in with a Google account, input your phone number, birthday, and credit card information through Stripe. (Browder swears the credit card information won't be stored.) Then the chatbot tells you you're all set. Now, every time you buy airline tickets, whether from an airline's site or a third party, the chatbot will help make sure you pay the lowest price for your class and seat.

Developers Love Trendy New Languages, But Earn More With Functional Programming: Stack Overflow's Annual Survey ( 111

Stack Overflow has released the results of its annual survey of 100,000 developers, revealing the most-popular, top-earning, and preferred programming languages. ArsTechnica: JavaScript remains the most widely used programming language among professional developers, making that six years at the top for the lingua franca of Web development. Other Web tech including HTML (#2 in the ranking), CSS (#3), and PHP (#9). Business-oriented languages were also in wide use, with SQL at #4, Java at #5, and C# at #8. Shell scripting made a surprising showing at #6 (having not shown up at all in past years, which suggests that the questions have changed year-to-year), Python appeared at #7, and systems programming stalwart C++ rounded out the top 10.

These aren't, however, the languages that developers necessarily want to use. Only three languages from the most-used top ten were in the most-loved list; Python (#3), JavaScript (#7), and C# (#8). For the third year running, that list was topped by Rust, the new systems programming language developed by Mozilla. Second on the list was Kotlin, which wasn't even in the top 20 last year. This new interest is likely due to Google's decision last year to bless the language as an official development language for Android. TypeScript, Microsoft's better JavaScript than JavaScript comes in at fourth, with Google's Go language coming in at fifth. Smalltalk, last year's second-most loved, is nowhere to be seen this time around. These languages may be well-liked, but it looks as if the big money is elsewhere. Globally, F# and OCaml are the top average earners, and in the US, Erlang, Scala, and OCaml are the ones to aim for. Visual Basic 6, Cobol, and CoffeeScript were the top three most-dreaded, which is news that will surprise nobody who is still maintaining Visual Basic 6 applications thousands of years after they were originally written.


Lyft Says Its Revenue Is Growing Nearly 3x Faster Than Uber's ( 53

U.S. ride-sharing company Lyft says it passed $1 billion in revenue last year and that its revenue grew 168 percent year over year in the fourth quarter of 2017, almost three times faster than Uber's reported 61 percent growth. "Uber, of course, is still much larger than Lyft -- it generated a reported $7.5 billion in revenue last year and operates in many more cities and countries," notes Recode. "While its fourth-quarter growth may have been smaller than Lyft's percentage-wise, it was still almost certainly many times larger dollar-wise. Both companies are still unprofitable." From the report: But the big-picture reality is that despite Uber's head start, its early dominance, ability to raise massive amounts of financing, aggressive (often allegedly illegal) growth tactics, faster move into self-driving cars and everything else in its favor, it has not been able to destroy Lyft. Instead, Lyft capitalized somewhat on Uber's missteps and unsavory reputation, raised another $2 billion last year, gained market share, launched its first international market last year (Toronto) and seems poised to exist for the foreseeable future.

Apple Seems OK With Currency Miners In the Mac App Store 38

Apple has yet to block a popular title in the Mac App Store that has openly embraced coin mining, prompting one to ask the question: does Apple allow apps in the Mac App Store if they clearly disclose that they will be mining cryptocurrency? Ars Technica reports: The app is Calendar 2, a scheduling app that aims to include more features than the Calendar app that Apple bundles with macOS. In recent days, Calendar 2 developer Qbix endowed it with code that mines the digital coin known as Monero. The xmr-stack miner isn't supposed to run unless users specifically approve it in a dialog that says the mining will be in exchange for turning on a set of premium features. If users approve the arrangement, the miner will then run. Users can bypass this default action by selecting an option to keep the premium features turned off or to pay a fee to turn on the premium features. If Calendar 2 isn't the first known app offered in Apple's official and highly exclusive App Store to do currency mining, it's one of the very few.

Tesla Raises Prices At Its Supercharger Stations 166

Tesla is increasing the cost of the paid Supercharger access, but a spokesperson for the company says that it "will never be a profit center." Electrek reports: When introducing the program, Tesla said that it aimed to still make the cost of Supercharging cheaper than gasoline and that it doesn't aim to make its Supercharger network a profit center. Instead, they want to use the money to keep growing the network which now consists of over 1,180 stations and close to 9,000 Superchargers. But this week, the rates were updated across the U.S. Some states saw massive increases of as much as 100 percent -- though most regions saw their rates increase by 20 to 40 percent. For example, Oregon saw an increase of $0.12 to $0.24 per kWh, while California, Tesla's biggest market in the U.S., got an increase from $0.20 to $0.26 kWh and New York's rate went from $0.19 to $0.24 per kWh. A spokesperson for Tesla said in a statement: "We occasionally adjust rates to reflect current local electricity and usage. The overriding principle is that Supercharging will always remain significantly cheaper than gasoline, as we only aim to recover a portion of our costs while setting up a fair system for everyone. This will never be a profit center for Tesla."

Inside the Booming Black Market For Spotify Playlists ( 44

The black market for Spotify playlists is booming. It's cheaper than you might expect to hack the system -- and if it's done right, it more than pays for itself, the Daily Dot reports. From the article: It's impossible to overstate the value of Spotify playlists. The company dominates the streaming music market, with 159 million active users and 71 million paid subscribers -- nearly double Apple Music's subscription base, according to a recent report in the Wall Street Journal. More importantly, Spotify has made playlists its defining feature. [...] The rising value of Spotify playlists has spurred a new form of payola -- the decades-old illegal practice of paying for a song to be broadcast on the radio -- with massive amounts of money changing hands behind the scenes. An August 2015 expose by Billboard quoted an unnamed major-label executive who claimed playlist adds were being sold for "$2,000 for a playlist with tens of thousands of fans to $10,000 for the more well-followed playlists." Spotify responded by updating its terms of service to explicitly prohibit "selling a user account or playlist, or otherwise accepting any compensation, financial or otherwise, to influence the name of an account or playlist or the content included on an account or playlist." But the practice of paying for placement, as with other forms of payola before it, hasn't died out. It's just been remixed.

In a matter of minutes and for a mere $2, you can pay to have your song considered by one of the 1,500 curators working on SpotLister, one of several new services that sells access to prominent Spotify users. The site was founded by two 21-year-old college students -- Danny Garcia, a guitar player at New York University, and a close friend who requested anonymity due to unrelated privacy concerns. They started a "private-for-hire" PR company in 2016 that offered "pitching services" to generate buzz on SoundCloud and, later, Spotify. The two would take on anywhere from 15 to 20 clients a month, each paying anywhere from $1,000-$5,000 to secure prominent placement on playlists.


YouTube, the Great Radicalizer ( 211

Zeynep Tufekci, writing for the New York Times: Before long, I was being directed to videos of a leftish conspiratorial cast, including arguments about the existence of secret government agencies and allegations that the United States government was behind the attacks of Sept. 11. As with the Trump videos, YouTube was recommending content that was more and more extreme than the mainstream political fare I had started with. Intrigued, I experimented with nonpolitical topics. The same basic pattern emerged. Videos about vegetarianism led to videos about veganism. Videos about jogging led to videos about running ultramarathons. It seems as if you are never "hard core" enough for YouTube's recommendation algorithm. It promotes, recommends and disseminates videos in a manner that appears to constantly up the stakes. Given its billion or so users, YouTube may be one of the most powerful radicalizing instruments of the 21st century.

This is not because a cabal of YouTube engineers is plotting to drive the world off a cliff. A more likely explanation has to do with the nexus of artificial intelligence and Google's business model. (YouTube is owned by Google.) For all its lofty rhetoric, Google is an advertising broker, selling our attention to companies that will pay for it. The longer people stay on YouTube, the more money Google makes. What keeps people glued to YouTube? Its algorithm seems to have concluded that people are drawn to content that is more extreme than what they started with -- or to incendiary content in general. Is this suspicion correct? Good data is hard to come by; Google is loath to share information with independent researchers. But we now have the first inklings of confirmation, thanks in part to a former Google engineer named Guillaume Chaslot. Mr. Chaslot worked on the recommender algorithm while at YouTube. He grew alarmed at the tactics used to increase the time people spent on the site. Google fired him in 2013, citing his job performance. He maintains the real reason was that he pushed too hard for changes in how the company handles such issues.

Open Source

Linux Developer McHardy Drops GPLv2 'Shake Down' Case ( 53

Former Linux developer Patrick McHardy dropped his Gnu General Public License version 2 (GPLv2) violation case against Geniatech in a German court this week. ZDNet explains why some consider this a big "win": People who find violations typically turn to organizations such as the Free Software Foundation, Software Freedom Conservancy (SFC), and the Software Freedom Law Center to approach violators. These organizations then try to convince violating companies to mend their ways and honor their GPLv2 legal requirements. Only as a last resort do they take companies to court to force them into compliance with the GPLv2. Patrick McHardy, however, after talking with SFC, dropped out from this diplomatic approach and has gone on his own way. Specifically, McHardy has been accused of seeking his own financial gain by approaching numerous companies in German courts. Geniatech claimed McHardy has sued companies for Linux GPLv2 violations in over 38 cases. In one, he'd requested a contractual penalty of €1.8 million. The company also claimed McHardy had already received over €2 million from his actions...

In July 2016, the Netfilter developers suspended him from the core team. They received numerous allegations that he had been shaking down companies. McHardy refused to discuss these issues with them, and he refused to sign off on the Principles of Community-Oriented GPL Enforcement. In October 2017, Greg Kroah-Hartman, Linux kernel maintainer for the stable branch, summed up the Linux kernel developers' position. Kroah-Hartman wrote: "McHardy has sought to enforce his copyright claims in secret and for large sums of money by threatening or engaging in litigation...."

Had McHardy continued on his way, companies would have been more reluctant to use Linux code in their products for fear that a single, unprincipled developer could sue them and demand payment for his copyrighted contributions... McHardy now has to bear all legal costs for both sides of the case. In other words, when McHardy was faced with serious and costly opposition for the first time, he waved a white flag rather than face near certain defeat in the courts.


Elon Musk Changes 'Boring Company' Vision To Reward Cyclists and Pedestrians ( 152

"Remember Elon Musk's plan to dig a massive web of traffic-beating tunnels underneath Los Angeles...?" asks CNN. "Now, that plan appears to be getting a huge makeover." An anonymous reader quotes TechCrunch: While it will still focus on digging tunnels to provide a network of underground tubes suitable for use by high-speed Hyperloop pods, the plan now is to use that Hyperloop to transport pedestrians and cyclists first, and then only later to work on moving cars around underground to bypass traffic. Musk shared the update via Twitter, noting that the idea would be to load customers onto cars roughly the size that a single parking space takes up currently, [thousands of which] would be dotted around an urban environment close to any destinations where someone might travel. The single-car station model would be designed to replace the current subway-style model, Musk said, where only a few small stations are very spread out... This is a big departure from the original vision, and it seems like one that might have evolved after Musk and his collaborators on the project spoke to urban planners and transit authorities.
"If someone can't afford a car, they should go first," Musk posted on Twitter, sharing a new conceptual video where an elevator lowers one of these pedestrian- and cyclist-focussed shuttle pods underground.

TechCrunch says this new vision "would be appealing both to urban officials looking to decrease congestion on downtown roads and discourage personal vehicle use, and to anyone hoping to increase access to affordable transit options."

MIT Plans To Build Nuclear Fusion Plant By 2033 170

Mallory Locklear reports via Engadget: MIT announced yesterday that it and Commonwealth Fusion Systems -- an MIT spinoff -- are working on a project that aims to make harvesting energy from nuclear fusion a reality within the next 15 years. The ultimate goal is to develop a 200-megawatt power plant. MIT also announced that Italian energy firm ENI has invested $50 million towards the project, $30 million of which will be applied to research and development at MIT over the next three years. MIT and CFS plan to use newly available superconducting materials to develop large electromagnets that can produce fields four-times stronger than any being used now. The stronger magnetic fields will allow for more power to be generated resulting in, importantly, positive net energy. The method will hopefully allow for cheaper and smaller reactors. The research team aims to develop a prototype reactor within the next 10 years, followed by a 200-megawatt pilot power plant.

California Bullet Train Costs Soar To $77.3 Billion, Will Take 5 Years Longer To Complete 269

The California High-Speed Rail Authority announced today that the cost of connecting Los Angeles to San Francisco would total $77.3 billion, an increase of $13 billion from estimates two years ago, and could potentially rise as high as $98.1 billion. They also said the earliest trains could operate on a partial system between San Jose and the farming town of Wasco would be 2029, five years later than the previous projection. Los Angeles Times reports: The disclosures are contained in a 114-page business plan that was issued in draft form by the rail authority and will be finalized this summer in a submission to the Legislature. The rail authority has wrestled with a more than $40-billion funding gap, which would increase sharply under the new cost estimates. The biggest immediate driver of the cost increase has been in the Central Valley, where the rail authority is building 119 miles of track between Wasco and Merced. The authority disclosed in early February that the cost of that work would jump to $10.6 billion from an original estimate of about $6 billion. Roy Hill, one of the senior consultants advising the state, told the rail authority board, "The worst-case scenario has happened." In its 2014 business plan, the rail authority optimistically projected that it could begin carrying passengers in just seven years. But the warning signs of uncontrolled cost growth had already started mounting then, even though until this year the rail authority has vehemently denied that it was facing a problem. The project began having trouble buying property for the route almost immediately after it issued its first construction contract in 2013.

Cable Industry Finally Fights Cord Cutting With Fewer Ads ( 106

The cable industry is slowly realizing that more advertisements and higher prices aren't the solution to cord cutting. Karl Bode writes via DSLReports: AT&T and Dish have explored offering cheaper, more flexible streaming alternatives (DirecTV Now and Sling TV, respectively), both understanding that getting out ahead of the cord cutting trend is the right play, even if the net result is making less money from traditional television. And on the broadcasting front, several companies this month made it clear they'll be reducing the ad loads on their programming, since charging users a subscription fee and socking them with endless ads is becoming a dated concept in the cord cutting era. Fox, for example, told the Wall Street Journal this week that the company would be reducing TV ad time in its content to two minutes an hour by 2020. Comcast NBC Universal says it's also following suit, having cut advertising time in its own shows by 10%, and reduced the overall number of advertising during commercial breaks by 20%. Given there's 83 million households still subscribing to traditional cable TV, many cable executives are under the false impression they can keep doubling down on bad ideas without the check coming due. But the data indicates this head in the sand approach simply isn't sustainable. Pay TV providers saw a reduction of more than 500,000 traditional pay TV customers during the fourth quarter, a decline of 3.4% total pay TV customers from the year before. That 3.4% decline was up from the 2% rate during in the fourth quarter of 2016 and a 1% rate of decline one year before that.

China's Alibaba is Investing Huge Sums in AI Research and Resources -- and It Is Building Tools To Challenge Google and Amazon ( 30

Alibaba is already using AI and machine learning to optimize its supply chain, personalize recommendations, and build products like Tmall Genie, a home device similar to the Amazon Echo. China's two other tech supergiants, Tencent and Baidu, are likewise pouring money into AI research. The government plans to build an AI industry worth around $150 billion by 2030 and has called on the country's researchers to dominate the field by then. But Alibaba's ambition is to be the leader in providing cloud-based AI. From a report: Like cloud storage (think Dropbox) or cloud computing (Amazon Web Services), cloud AI will make powerful resources cheaply and readily available to anyone with a computer and an internet connection, enabling new kinds of businesses to grow. The real race in AI between China and the US, then, will be one between the two countries' big cloud companies, which will vie to be the provider of choice for companies and cities that want to make use of AI. And if Alibaba is anything to go by, China's tech giants are ready to compete with Google, Amazon, IBM, and Microsoft to serve up AI on tap. Which company dominates this industry will have a huge say in how AI evolves and how it is used.

[...] There have been other glimpses of Alibaba's progress in AI lately. Last month a research team at the company released an AI program capable of reading a piece of text, and answering simple questions about that text, more accurately than anything ever built before. The text was in English, not Chinese, because the program was trained on the Stanford Question Answering Dataset (SQuAD), a benchmark used to test computerized question-and-answer systems. [...] One advantage China's tech companies have over their Western counterparts is the government's commitment to AI. Smart cities that use the kind of technology found in Shanghai's metro kiosks are likely to be in the country's future. One of Alibaba's cloud AI tools is a suite called City Brain, designed for tasks like managing traffic data and analyzing footage from city video cameras.

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