Whoops! Amazon served costly ads for products people couldn’t actually buy

It can be quite annoying to click through an Amazon ad in your results only to find out that the product you want can't be shipped to your place. Now, imagine you're the small business owner being charged for those ads. (Forget corporations and drop shippers, I know you all hate them.) There you are, thinking you're going to make a killing based on how much ad action you're getting. Except those ads don't translate to sales, because Amazon has been serving them to people who can't even buy your products. That's apparently what happened to at least one seller who told Bloomberg that he was charged between $200,000 and $300,000 for ads served to California residents, where he can't sell his advanced gaming computer items. 

The seller stopped shipping to California due to the state's personal computer power consumption regulations, which would require him to get costly lab reports for his products. But Amazon's automated system apparently continued advertising his products there and allegedly denied that there was an issue when he flagged the problem and followed up for several weeks. Since he was being charged thousands, the seller, who employs 80 people in Virginia to assemble custom computers, reportedly made zero profit in November, December and January. 

Amazon has acknowledged the issue in a statement sent to Engadget. It told us that it had investigated the matter and found that it only affected "a tiny fraction" of sellers. It also said that it had already apologized to the seller who talked to Bloomberg and that the company is in the process of refunding him $15,000. That's a tiny fraction of the hundreds of thousands the seller said he'd lost, but Amazon says it only served "a very small portion" of his listings to California residents. "We will similarly contact and refund any affected sellers, and are updating our processes to ensure any such ads are not charged going forward," the spokesperson said. 

The company's advertising system generally can't geo-target advertisements like Google ads can, because it focuses on matching buyers to certain brands or products they may be interested in. It also can't ensure that the product it's advertising complies with state regulations and, hence, can be shipped to its residents. As Bloomberg notes, this is far from the first time Amazon faced an issue regarding its advertisements. Last year, the Federal Trade Commission filed an antitrust lawsuit against the company, and one of the regulator's accusations was that it was "deliberately increasing junk ads that worsen search quality." A report that came out after the lawsuit revealed that Amazon can strike deals with other companies to make sure their listings are devoid of junk ads, though, which is why Apple's official product pages might look cleaner and less cluttered compared to its competitors'.

This article originally appeared on Engadget at https://www.engadget.com/whoops-amazon-served-costly-ads-for-products-people-couldnt-actually-buy-123046646.html?src=rss

The SEC accuses Elon Musk of trying to ‘distort’ its investigation into his takeover of Twitter

The SEC officials investigating Elon Musk over his handling of the Twitter takeover seem to be growing more and more impatient with his legal antics. The two sides have been locked in a dispute over Musk’s refusal to testify in the investigation.Now, in a new filing, the SEC accuses Musk of trying to “misrepresent” the regulator’s investigation. “Musk continues to distort the true scope of this investigation – his only hope for establishing that the SEC is not seeking relevant evidence,” the SEC writes in a court document.

The SEC has been investigating Musk since 2022 over his delayed disclosure of his stake in Twitter, which was then a publicly-traded company. The regulator sued Musk last year in an effort to force him to testify in the investigation. The SEC said at the time it was investigating “among other things, potential violations of various provisions of the federal securities laws in connection with” his purchase of Twitter stock and “SEC filings relating to Twitter.” A federal judge ordered Musk to comply with the subpoena and schedule an interview last month.

That testimony has apparently still not taken place, with the SEC accusing Musk of using “gamesmanship” to stall the investigation. The regulator goes on to note that while Musk’s legal team has claimed the probe is an “unbounded investigation into an allegedly days-late SEC filing,” that “the SEC staff has repeatedly informed Musk that it is false.” 

Musk, according to the SEC, is also being investigated for securities fraud. “This investigation also examines potential securities fraud in violation of Section 10(b) of the Securities Exchange Act … related to, among other things, Musk’s public statements about his acquisition of Twitter,” the SEC says.

Notably, the filing also references the recently-released biography of Musk written by Walter Isaacson, which contains “newly released evidence,” according to the SEC. “Three days before he was to appear for the testimony he failed to attend, his September 2023 biography was published,” the SEC writes. “This book provides important new information relevant to the SEC’s investigation.”

It’s also not the first time Isaacson’s account of the Twitter takeover has landed Musk in hot water. A group of former execs suing Musk over unpaid severance also referenced a passage from the book in their lawsuit.

X didn’t immediately respond to a request for comment.

This article originally appeared on Engadget at https://www.engadget.com/the-sec-accuses-elon-musk-of-trying-to-distort-its-investigation-into-his-takeover-of-twitter-001429205.html?src=rss

The SEC accuses Elon Musk of trying to ‘distort’ its investigation into his takeover of Twitter

The SEC officials investigating Elon Musk over his handling of the Twitter takeover seem to be growing more and more impatient with his legal antics. The two sides have been locked in a dispute over Musk’s refusal to testify in the investigation.Now, in a new filing, the SEC accuses Musk of trying to “misrepresent” the regulator’s investigation. “Musk continues to distort the true scope of this investigation – his only hope for establishing that the SEC is not seeking relevant evidence,” the SEC writes in a court document.

The SEC has been investigating Musk since 2022 over his delayed disclosure of his stake in Twitter, which was then a publicly-traded company. The regulator sued Musk last year in an effort to force him to testify in the investigation. The SEC said at the time it was investigating “among other things, potential violations of various provisions of the federal securities laws in connection with” his purchase of Twitter stock and “SEC filings relating to Twitter.” A federal judge ordered Musk to comply with the subpoena and schedule an interview last month.

That testimony has apparently still not taken place, with the SEC accusing Musk of using “gamesmanship” to stall the investigation. The regulator goes on to note that while Musk’s legal team has claimed the probe is an “unbounded investigation into an allegedly days-late SEC filing,” that “the SEC staff has repeatedly informed Musk that it is false.” 

Musk, according to the SEC, is also being investigated for securities fraud. “This investigation also examines potential securities fraud in violation of Section 10(b) of the Securities Exchange Act … related to, among other things, Musk’s public statements about his acquisition of Twitter,” the SEC says.

Notably, the filing also references the recently-released biography of Musk written by Walter Isaacson, which contains “newly released evidence,” according to the SEC. “Three days before he was to appear for the testimony he failed to attend, his September 2023 biography was published,” the SEC writes. “This book provides important new information relevant to the SEC’s investigation.”

It’s also not the first time Isaacson’s account of the Twitter takeover has landed Musk in hot water. A group of former execs suing Musk over unpaid severance also referenced a passage from the book in their lawsuit.

X didn’t immediately respond to a request for comment.

This article originally appeared on Engadget at https://www.engadget.com/the-sec-accuses-elon-musk-of-trying-to-distort-its-investigation-into-his-takeover-of-twitter-001429205.html?src=rss

The US Government says IP infringement is all over NFT marketplaces

The non-fungible token (NFT) bubble burst quite some time ago, but the US Government has only just published a report looking into the surrounding legal framework. The study, carried out jointly by the US Copyright Office (USCO) and the Patent and Trademark Office (USPTO) following a 2022 request by the Senate, determined that current intellectual property laws are robust enough to deal with copyright or trademark infringement in NFTs. The agencies also determined that although there are some benefits to the tokens, "trademark infringement and misuse is prevalent on NFT marketplaces."

As a reminder, an NFT is a digital certificate of authenticity conferring ownership of a collectible, such as an artwork or piece of music. It's effectively a verified link to a piece of media which may or may not live on the blockchain, but whoever owns the destination of an NFT's URL can change the media it points to at any time. In one notable case in 2021, Signal founder Moxie Marlinspike created an NFT that he promised would appear to be a poop emoji when someone bought it.

The offices noted that NFTs and associated smart contracts can aid trademark owners in managing, licensing and transferring IP rights. Those who weighed in on the issue in public comments pointed out that NFTs can help artists make money from future sales of their work too. That's not inherently a bad thing, even if a large swath of NFT art is butt-ugly.

However, the study noted "widespread concern that NFT buyers and sellers do not know what IP rights are implicated in the creation, marketing and transfer of NFTs and that NFTs may be used to facilitate copyright or trademark infringement."

The report notes that the decentralized nature of NFTs and blockchain networks complicates any attempts to enforce trademarks. "While some individual NFT platforms have developed protocols to help trademark owners enforce their rights, there is no centralized authority that requires all platforms to do so," the report reads. "There are also no cross-platform mechanisms to allow trademark owners to identify and take down infringing content, settle trademark-related disputes involving blockchain-based domain names, or confirm that sellers own the trademark rights associated with the assets they offer."

With all of that in mind, the offices said that educating the public about NFTs could help ensure a better understanding and awareness of the tokens and how they work. Still, they recommended in their report to Congress that the current use of NFTs doesn't require changes to current IP laws. They also noted that "incorporating NFTs into their registration and recordation practices is not necessary or advisable at this time." In other words, they don't think they should have to deal with NFTs either.

This article originally appeared on Engadget at https://www.engadget.com/the-us-government-says-ip-infringement-is-all-over-nft-marketplaces-155757506.html?src=rss

Now it’s NVIDIA being sued over AI copyright infringement

It's getting hard to keep up with copyright lawsuits against generative AI, with a new proposed class action hitting the courts last week. This time, authors are suing NVIDIA over its AI platform NeMo, a language model that allows businesses to create and train their own chatbots, Ars Technica reported. They claim the company trained it on a controversial dataset that illegally used their books without consent.

Authors Abdi Nazemian, Brian Keene and Stewart O’Nan demanded a jury trial and asked NVIDIA to pay damages and destroy all copies of the Books3 dataset used to power NeMo large language models (LLMs). They claim that dataset copied a shadow library called Bibliotek consisting of 196,640 pirated books. 

"In sum, NVIDIA has admitted training its NeMo Megatron models on a copy of The Pile dataset," the claim states. "Therefore, NVIDIA necessarily also trained its NeMo Megatron models on a copy of Books3, because Books3 is part of The Pile. Certain books written by Plaintiffs are part of Books3— including the Infringed Works—and thus NVIDIA necessarily trained its NeMo Megatron models on one or more copies of the Infringed Works, thereby directly infringing the copyrights of the Plaintiffs. 

In response, NVIDIA told The Wall Street Journal that "we respect the rights of all content creators and believe we created NeMo in full compliance with copyright law."

Last year, OpenAI and Microsoft were hit with a copyright lawsuit from nonfiction authors, claiming the companies made money off their works but refused to pay them. A similar lawsuit was launched earlier this year. That's on top of a lawsuit from news organizations like The Intercept and Raw Story, and of course, the legal action that kicked all of this off from The New York Times

This article originally appeared on Engadget at https://www.engadget.com/now-its-nvidia-being-sued-over-ai-copyright-infringement-083407300.html?src=rss

SpaceX lawsuit claims repeated instances of gender discrimination and basic safeguarding failures

Warning: The following article covers matters of a sensitive nature.

A SpaceX employee has filed a lawsuit against the company, accusing it of siding with a supervisor who pressured her into having sexual relations with him. The plaintiff said that she and other female employees also had to endure "humiliating comments" questioning their credentials, that she was passed up for promotions in favor of male candidates and that she experienced retaliation when she complained about being paid less than her male counterparts. 

The plaintiff, Michelle Dopak, has been working at the aerospace corporation's headquarters in California since 2017. According to her complaint, she experienced discrimination early on in her employment when she was passed up for job opportunities in favor of external male candidates. Her male colleagues allegedly spread rumors about their female coworkers, as well, claiming that they only got their jobs because of their looks. Dopak and two of her female colleagues met with Gwynne Shotwell to complain about both issues — "an action that no male colleague or employee at SpaceX would ever feel the need to do to justify their hiring and stop such discriminatory actions," the lawsuit reads. The SpaceX president, however, apparently didn't take any action. 

After a reorganization in 2019, the plaintiff was placed under the supervision of a male boss who allegedly pressured her into having a sexual relationship that lasted years. When she got pregnant as a result, she said her married supervisor offered her $100,000 to have an abortion, which she had refused. She also accused SpaceX of colluding with her boss to transfer 48,289 shares worth $3,718,253 out of his name so that he could get out of paying child support. 

Her complaints didn't end there. After getting promoted to a position she had been chasing for years, she found out that a male colleague who was hired at the same time was being paid $5,000 more. The company officials she talked to about the pay disparity couldn't justify it and allegedly offered her only $2,500 more if she also took a reduction in stock benefits. In the lawsuit, the plaintiff said the offer was "a message that if you complain at SpaceX, we will just retaliate against you and find other ways to punish you."

The lawsuit accuses SpaceX of forcing female employees who have claims of sexual harassment and discrimination into bringing their claims to arbitration so that they could be kept secret from the public. "SpaceX has also attempted to coerce and force [the plaintiff] into only bringing her claims in arbitration even though such claims are barred from being forced to arbitration," the complaint continues.

The plaintiff is asking for general, compensatory and consequential damages, including lost wages, earnings and other employee benefits. She's also asking the court to prohibit SpaceX from continuing any "unfair and unlawful business practices." SpaceX is currently facing another proposed class action lawsuit that claims it pays women and minorities tens of thousands less than what it pays white male employees. In January, the National Labor Relations Board filed a complaint against SpaceX, as well, accusing it for illegally firing a group of engineers who criticized Elon Musk for making crude jokes on X about the sexual misconduct accusations against him.

This article originally appeared on Engadget at https://www.engadget.com/spacex-lawsuit-claims-repeated-instances-of-gender-discrimination-and-basic-safeguarding-failures-133014753.html?src=rss

SpaceX lawsuit claims repeated instances of gender discrimination and basic safeguarding failures

Warning: The following article covers matters of a sensitive nature.

A SpaceX employee has filed a lawsuit against the company, accusing it of siding with a supervisor who pressured her into having sexual relations with him. The plaintiff said that she and other female employees also had to endure "humiliating comments" questioning their credentials, that she was passed up for promotions in favor of male candidates and that she experienced retaliation when she complained about being paid less than her male counterparts. 

The plaintiff, Michelle Dopak, has been working at the aerospace corporation's headquarters in California since 2017. According to her complaint, she experienced discrimination early on in her employment when she was passed up for job opportunities in favor of external male candidates. Her male colleagues allegedly spread rumors about their female coworkers, as well, claiming that they only got their jobs because of their looks. Dopak and two of her female colleagues met with Gwynne Shotwell to complain about both issues — "an action that no male colleague or employee at SpaceX would ever feel the need to do to justify their hiring and stop such discriminatory actions," the lawsuit reads. The SpaceX president, however, apparently didn't take any action. 

After a reorganization in 2019, the plaintiff was placed under the supervision of a male boss who allegedly pressured her into having a sexual relationship that lasted years. When she got pregnant as a result, she said her married supervisor offered her $100,000 to have an abortion, which she had refused. She also accused SpaceX of colluding with her boss to transfer 48,289 shares worth $3,718,253 out of his name so that he could get out of paying child support. 

Her complaints didn't end there. After getting promoted to a position she had been chasing for years, she found out that a male colleague who was hired at the same time was being paid $5,000 more. The company officials she talked to about the pay disparity couldn't justify it and allegedly offered her only $2,500 more if she also took a reduction in stock benefits. In the lawsuit, the plaintiff said the offer was "a message that if you complain at SpaceX, we will just retaliate against you and find other ways to punish you."

The lawsuit accuses SpaceX of forcing female employees who have claims of sexual harassment and discrimination into bringing their claims to arbitration so that they could be kept secret from the public. "SpaceX has also attempted to coerce and force [the plaintiff] into only bringing her claims in arbitration even though such claims are barred from being forced to arbitration," the complaint continues.

The plaintiff is asking for general, compensatory and consequential damages, including lost wages, earnings and other employee benefits. She's also asking the court to prohibit SpaceX from continuing any "unfair and unlawful business practices." SpaceX is currently facing another proposed class action lawsuit that claims it pays women and minorities tens of thousands less than what it pays white male employees. In January, the National Labor Relations Board filed a complaint against SpaceX, as well, accusing it for illegally firing a group of engineers who criticized Elon Musk for making crude jokes on X about the sexual misconduct accusations against him.

This article originally appeared on Engadget at https://www.engadget.com/spacex-lawsuit-claims-repeated-instances-of-gender-discrimination-and-basic-safeguarding-failures-133014753.html?src=rss

A former Google engineer was arrested for allegedly stealing AI secrets for Chinese rivals

A former Google engineer was arrested in California on Wednesday for stealing more than 500 files containing artificial intelligence trade secrets from the company and using the information to benefit rival tech companies in China.

In an indictment that was unsealed in a federal California court, prosecutors accused Linwei Ding, a 38-year-old Chinese national who started working at Google in 2019, of uploading trade secrets from his Google-issued laptop to personal cloud storage accounts. The documents that Ding stole involved “building blocks” of Google’s AI infrastructure, according to the indictment. He uploaded them to his personal accounts over a period of one year from May 2022 to May 2023.

Ding was arrested in Newark, California, and charged with four counts of theft of trade secrets. If convicted, he can be sentenced up to 10 years in prison and a fine of up to $250,000 for each count.

“We have strict safeguards to prevent the theft of our confidential commercial information and trade secrets,” Google spokesperson José Castañeda told Engadget. “After an investigation, we found that this employee stole numerous documents, and we quickly referred the case to law enforcement. We are grateful to the FBI for helping protect our information and will continue cooperating with them closely.”

The development comes at a time of heightened tensions between the United States and China over the explosion of artificial intelligence. Last year, the Biden administration banned the export of advanced AI chips designed by American companies like NVIDIA to China to stop the country from using AI to strengthen its military. “Today’s charges are the latest illustration of the lengths affiliates of companies based in the People’s Republic of China are wiling to go to steal American innovation,” said FBI director Christopher Wray in a statement. “The theft of innovative technology and trade secrets from American companies can cost jobs and have devastating economic and national security consequences.”

The indictment revealed all kinds of details about the nature of the crime. Ding allegedly copied information from Google’s files into Apple Notes on his laptop first, and then converted them to PDF files that he uploaded to his personal Google account to evade detection by Google’s data loss prevention systems. He also gave his Google badge to another Google employee in California to make it seem like he was working from Google’s offices in the state while actually working for rival companies in China. Prosecutors said that Ding helped in raising capital for one of the Chinese companies he worked with as its chief technology officer. Last year, he also founded another AI company in China and served as its CEO.

This isn’t the first time that the US has arrested a Chinese national for stealing trade secrets from American companies. In the last few years, the US attorney’s office in San Francisco has charged three former Apple employees for stealing trade secrets related to the Apple Car, a project the company recently canceled, and siphoning them off to companies in China. Last month, one of those engineers was sentenced to six months in prison and asked to pay nearly $150,000 in fines. 

This article originally appeared on Engadget at https://www.engadget.com/a-former-google-engineer-was-arrested-for-allegedly-stealing-ai-secrets-for-chinese-rivals-010846023.html?src=rss

A former Google engineer was arrested for allegedly stealing AI secrets for Chinese rivals

A former Google engineer was arrested in California on Wednesday for stealing more than 500 files containing artificial intelligence trade secrets from the company and using the information to benefit rival tech companies in China.

In an indictment that was unsealed in a federal California court, prosecutors accused Linwei Ding, a 38-year-old Chinese national who started working at Google in 2019, of uploading trade secrets from his Google-issued laptop to personal cloud storage accounts. The documents that Ding stole involved “building blocks” of Google’s AI infrastructure, according to the indictment. He uploaded them to his personal accounts over a period of one year from May 2022 to May 2023.

Ding was arrested in Newark, California, and charged with four counts of theft of trade secrets. If convicted, he can be sentenced up to 10 years in prison and a fine of up to $250,000 for each count.

“We have strict safeguards to prevent the theft of our confidential commercial information and trade secrets,” Google spokesperson José Castañeda told Engadget. “After an investigation, we found that this employee stole numerous documents, and we quickly referred the case to law enforcement. We are grateful to the FBI for helping protect our information and will continue cooperating with them closely.”

The development comes at a time of heightened tensions between the United States and China over the explosion of artificial intelligence. Last year, the Biden administration banned the export of advanced AI chips designed by American companies like NVIDIA to China to stop the country from using AI to strengthen its military. “Today’s charges are the latest illustration of the lengths affiliates of companies based in the People’s Republic of China are wiling to go to steal American innovation,” said FBI director Christopher Wray in a statement. “The theft of innovative technology and trade secrets from American companies can cost jobs and have devastating economic and national security consequences.”

The indictment revealed all kinds of details about the nature of the crime. Ding allegedly copied information from Google’s files into Apple Notes on his laptop first, and then converted them to PDF files that he uploaded to his personal Google account to evade detection by Google’s data loss prevention systems. He also gave his Google badge to another Google employee in California to make it seem like he was working from Google’s offices in the state while actually working for rival companies in China. Prosecutors said that Ding helped in raising capital for one of the Chinese companies he worked with as its chief technology officer. Last year, he also founded another AI company in China and served as its CEO.

This isn’t the first time that the US has arrested a Chinese national for stealing trade secrets from American companies. In the last few years, the US attorney’s office in San Francisco has charged three former Apple employees for stealing trade secrets related to the Apple Car, a project the company recently canceled, and siphoning them off to companies in China. Last month, one of those engineers was sentenced to six months in prison and asked to pay nearly $150,000 in fines. 

This article originally appeared on Engadget at https://www.engadget.com/a-former-google-engineer-was-arrested-for-allegedly-stealing-ai-secrets-for-chinese-rivals-010846023.html?src=rss

OpenAI says Elon Musk wanted it to merge with Tesla to create a for-profit entity

Elon Musk, who sued OpenAI for violating its non-profit mission and chasing profits, allegedly wanted the organization to merge with Tesla when it was starting to plan its transition into a for-profit entity in order to accomplish its goals. Well, either that or get full control of the company, OpenAI said in a blog post. The organization responded to Musk's lawsuit by publishing old emails from 2015 to 2018 when he was still involved in its operations. 

When OpenAI introduced itself to the world back in 2015, it announced that it had $1 billion in funding. Apparently, Musk was the one who suggested that figure, even though OpenAI had raised less than $45 million from him and around $90 million from other donors. "We need to go with a much bigger number than $100M to avoid sounding hopeless... I think we should say that we are starting with a $1B funding commitment... I will cover whatever anyone else doesn't provide," he wrote, according to the company. 

In 2017, OpenAI's leaders realized that they truly did need a lot more money — billions of dollars — because artificial intelligence required vast quantities of computing power. That's when they started discussing its transition into a for-profit structure. OpenAI said Musk was involved in the planning and originally wanted majority equity, control of the initial board of directors and the CEO position. However, the organization felt that it was against its mission to give one person absolute control over it. They couldn't get to an agreement, and Musk reportedly withheld funding while talks were ongoing.

Musk then forwarded an email to OpenAI in 2018, which suggested attaching the organization to Tesla so that the automaker could provide its funding. He explained in his letter that he believed it was "the only path that could even hope to hold a candle to Google." OpenAI didn't say how their discussions progressed after that, but Musk's idea obviously didn't push through, and he soon left the company. In the last email from Musk that the organization posted, he said his "probability assessment of OpenAI being relevant to DeepMind/Google without a dramatic change in execution and resources is 0%." 

In his lawsuit, Musk accused OpenAI of being a "closed-source de facto subsidiary" of Microsoft, which uses its AI technology for products like Bing after investing $13 billion into the company. "Microsoft stands to make a fortune selling GPT-4 to the public, which would not be possible if OpenAI — as it is required to do — makes the technology freely available to the public," the lawsuit argued. OpenAI said Musk was aware its mission did not imply open sourcing its artificial intelligence technology, though. It released an email in which Ilya Sutskever, its co-founder and chief scientist, told Musk: "As we get closer to building AI, it will make sense to start being less open. The Open in OpenAI means that everyone should benefit from the fruits of AI after its built, but it's totally OK to not share the science." Musk then responded with "Yup."

"We're sad that it's come to this with someone whom we've deeply admired — someone who inspired us to aim higher, then told us we would fail, started a competitor, and then sued us when we started making meaningful progress towards OpenAI's mission without him," the company wrote in its post. After Musk filed his lawsuit, the company sent internal memos to its staff denying his allegations. Chief Strategy Officer Jason Kwon said in one memo that Musk's claims "may stem from [his] regrets about not being involved with the company today." Sam Altman said in another memo that he misses the person he knew who competed with others by building better technology. He also responded to a five-year old tweet from Musk thanking him for defending Tesla.

Musk's lawsuit accuses OpenAI of breach of contract, breach of fiduciary duty and unfair competition. He is currently seeking a jury trial and wants the court to order OpenAI to follow its "longstanding practice of making AI research and technology" available to the public, as well as to prohibit it from using its technology for the financial benefit of Microsoft and any other particular organization or individual. Musk has yet to respond to OpenAI's post.

This article originally appeared on Engadget at https://www.engadget.com/openai-says-elon-musk-wanted-it-to-merge-with-tesla-to-create-a-for-profit-entity-063050178.html?src=rss