Tag Archives: Business

Meta asks a judge to throw out an FTC antitrust case

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Meta has asked a judge to dismiss a Federal Trade Commission antitrust case against the company before it goes to trial. Alongside 48 states and territories, the FTC sued Meta in 2020 in an attempt to force the company to divest Instagram and WhatsApp, which it bought in 2012 and 2014, respectively.

The agency and dozens of attorneys general claim that Meta (then known as Facebook) bought the two platforms to stifle competition. Meta CEO Mark Zuckerberg “recognized that by acquiring and controlling Instagram, Facebook would not only squelch the direct threat that Instagram posed, but also significantly hinder another firm from using photo-sharing on mobile phones to gain popularity as a provider of personal social networking,” the FTC asserted. “Just as with Instagram, WhatsApp presented a powerful threat to Facebook’s personal social networking monopoly, which Facebook targeted for acquisition rather than competition.”

Meta notes that not only did the FTC approve both acquisitions in the first place, but its initial complaint was dismissed for failing to to state a plausible claim. While a judge has allowed an amended complaint to move forward, Meta claims that "the agency has done nothing to build its case through the discovery process" to show that the company holds monopoly power in the “personal social networking services” market and that it caused harm to consumers and competition through the purchases.

In its motion for summary judgment, the company points out that Instagram, which accounted for nearly 30 percent of the company's total revenue in the first half of 2022, wasn't making any money when it bought the service for $1 billion in 2012. Instagram had just two percent of the billion-plus users it has now, Meta says, adding that it introduced features such as direct messages, livestreaming, Stories and shopping. As for WhatsApp, Meta made the service free to use, added end-to-end encryption and implemented voice and video calling.

Meta argues that it has invested billions of dollars and millions of hours of work into the apps. It claims that both Instagram and WhatsApp are in a better place as a result, to the benefit of consumers and businesses.

Elsewhere, Meta argues that the FTC failed to establish a relevant antitrust market, claiming that the agency's definition of an “personal social networking services” market used "an artificially limited set of only four companies – Facebook, Instagram, Snapchat and MeWe – ignoring many of the most popular activities people engage in on Facebook and Instagram." For instance, Meta points out that YouTube and TikTok offer similar short-form video features to Reels.

What's more, the FTC's allegation that Meta has a “dominant share” of the artificial “personal social networking services market” doesn't hold up, according to the company. Meta says that's because the FTC's "market share numbers are meaningless without a properly defined market."

Meta, which accused the FTC of wielding "structurally unconstitutional authority" against the company in a separate case last year, also took the opportunity to take more potshots at the agency and antitrust rules. "The decision to revisit done deals is tantamount to announcing that no sale will ever be final," Jennifer Newstead, Meta’s Chief Legal Officer, wrote in a blog post. Newstead claims the Instagram and WhatsApp "lawsuit not only sows doubt and uncertainty about the US government’s merger review process and whether acquiring businesses can actually rely on the outcomes of the regulatory review process, but it will also make companies think twice about investing in innovation, since they may be punished if that innovation leads to success."

This article originally appeared on Engadget at https://www.engadget.com/meta-asks-a-judge-to-throw-out-an-ftc-antitrust-case-203950108.html?src=rss

Samsung is doubling its semiconductor investment in Texas to $44 billion

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It looks like President Biden’s CHIPS Act is starting to pay off. Samsung is planning on doubling its investment in Texas, according to a report by The Wall Street Journal. This will bring the total investment in the state’s chip-manufacturing sector to $44 billion, as Samsung already spent nearly $20 billion to build a factory back in 2021.

The ambitious expansion will reportedly take the form of a new chip manufacturing facility, a packaging site and a research and development space. It’ll all be located in or near Taylor, Texas, as that’s where the pre-existing semiconductor facility was built. The current manufacturing hub isn’t operational yet, but will begin building “crucial logic chips” later this year. For the geographically challenged, Taylor is around a 40 minute drive from Austin.

If this actually happens, it’ll be a huge win for the Biden administration. One of the main goals of the CHIPS Act, after all, is to lure global chipmakers to build on US soil. To that end, Washington plans on awarding more than $6 billion to Samsung as further incentive to keep things running in the good ole USA.

The CHIPS Act has allowed the federal government to award funding and offer loans to many tech companies to encourage domestic spending. Back in February, the multinational semiconductor company GlobalFoundries received a grant of $1.5 billion to help pay for a major US expansion, in addition to a $1.6 billion loan. It plans on building a new fabrication facility in Malta, New York, which will handle the manufacture of chips for the automotive, aerospace, defense and AI industries.

More recently, Intel received the largest CHIPS grant to date, snagging up to $8.5 billion to continue various US-based operations. The current plan is for Intel to use that money to manufacture plants that make leading-edge semiconductor chips meant for use in AI and other advanced applications. The company’s building two new fabrication facilities in Arizona and two in Ohio. Additionally, it’s going to use the money to modernize two pre-existing fabs in New Mexico and expand one location in Oregon. All told, Intel is going to invest $100 billion in US-based chip manufacturing. The various projects are expected to create 20,000 construction and 10,000 manufacturing jobs.

The Biden administration signed the CHIPS and Science Act into law back in 2022 to foster domestic semiconductor research and manufacturing and to lessen America’s reliance on Chinese suppliers. It sets aside $52 billion in tax credits and funding for firms to expand stateside production.

This article originally appeared on Engadget at https://www.engadget.com/samsung-is-doubling-its-semiconductor-investment-in-texas-to-44-billion-154322399.html?src=rss

Samsung is doubling its semiconductor investment in Texas to $44 billion

Posted on by

It looks like President Biden’s CHIPS Act is starting to pay off. Samsung is planning on doubling its investment in Texas, according to a report by The Wall Street Journal. This will bring the total investment in the state’s chip-manufacturing sector to $44 billion, as Samsung already spent nearly $20 billion to build a factory back in 2021.

The ambitious expansion will reportedly take the form of a new chip manufacturing facility, a packaging site and a research and development space. It’ll all be located in or near Taylor, Texas, as that’s where the pre-existing semiconductor facility was built. The current manufacturing hub isn’t operational yet, but will begin building “crucial logic chips” later this year. For the geographically challenged, Taylor is around a 40 minute drive from Austin.

If this actually happens, it’ll be a huge win for the Biden administration. One of the main goals of the CHIPS Act, after all, is to lure global chipmakers to build on US soil. To that end, Washington plans on awarding more than $6 billion to Samsung as further incentive to keep things running in the good ole USA.

The CHIPS Act has allowed the federal government to award funding and offer loans to many tech companies to encourage domestic spending. Back in February, the multinational semiconductor company GlobalFoundries received a grant of $1.5 billion to help pay for a major US expansion, in addition to a $1.6 billion loan. It plans on building a new fabrication facility in Malta, New York, which will handle the manufacture of chips for the automotive, aerospace, defense and AI industries.

More recently, Intel received the largest CHIPS grant to date, snagging up to $8.5 billion to continue various US-based operations. The current plan is for Intel to use that money to manufacture plants that make leading-edge semiconductor chips meant for use in AI and other advanced applications. The company’s building two new fabrication facilities in Arizona and two in Ohio. Additionally, it’s going to use the money to modernize two pre-existing fabs in New Mexico and expand one location in Oregon. All told, Intel is going to invest $100 billion in US-based chip manufacturing. The various projects are expected to create 20,000 construction and 10,000 manufacturing jobs.

The Biden administration signed the CHIPS and Science Act into law back in 2022 to foster domestic semiconductor research and manufacturing and to lessen America’s reliance on Chinese suppliers. It sets aside $52 billion in tax credits and funding for firms to expand stateside production.

This article originally appeared on Engadget at https://www.engadget.com/samsung-is-doubling-its-semiconductor-investment-in-texas-to-44-billion-154322399.html?src=rss

YouTube CEO warns OpenAI that training models on its videos is against the rules

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AI models using individual's work without permission (or compensation) is nothing new, with entities like The New York Times and Getty Images initiating lawsuits against AI creators alongside artists and writers. In March, OpenAI CTO Mira Murati contributed to the ongoing uncertainty, telling The Wall Street Journal she wasn't sure if Sora, the company's new text-to-video AI tool, takes data from YouTube, Instagram or Facebook posts. Now, YouTube's CEO Neal Mohan has responded with a clear warning to OpenAI that using its videos to teach Sora would be a "clear violation" of the platform's terms of use.

In an interview with Bloomberg Originals host Emily Chang, Mohan stated, "From a creator's perspective, when a creator uploads their hard work to our platform, they have certain expectations. One of those expectations is that the terms of service is going to be abided by. It does not allow for things like transcripts or video bits to be downloaded, and that is a clear violation of our terms of service. Those are the rules of the road in terms of content on our platform."

A lot of uncertainty and controversy still surrounds how OpenAI trains Sora, along with ChatGPT and DALL-E, with The Wall Street Journal recently reporting the company plans to use YouTube video transcriptions to train GPT-5. On the other hand, OpenAI competitor Google is apparently respecting the rules — at least when it comes to YouTube (which it owns). Google's AI model Gemini requires similar data to learn but Mohan claims it only uses certain videos, depending on permissions are given in each creator's licensing contract.

This article originally appeared on Engadget at https://www.engadget.com/youtube-ceo-warns-openai-that-training-models-on-its-videos-is-against-the-rules-121547513.html?src=rss

YouTube CEO warns OpenAI that training models on its videos is against the rules

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AI models using individual's work without permission (or compensation) is nothing new, with entities like The New York Times and Getty Images initiating lawsuits against AI creators alongside artists and writers. In March, OpenAI CTO Mira Murati contributed to the ongoing uncertainty, telling The Wall Street Journal she wasn't sure if Sora, the company's new text-to-video AI tool, takes data from YouTube, Instagram or Facebook posts. Now, YouTube's CEO Neal Mohan has responded with a clear warning to OpenAI that using its videos to teach Sora would be a "clear violation" of the platform's terms of use.

In an interview with Bloomberg Originals host Emily Chang, Mohan stated, "From a creator's perspective, when a creator uploads their hard work to our platform, they have certain expectations. One of those expectations is that the terms of service is going to be abided by. It does not allow for things like transcripts or video bits to be downloaded, and that is a clear violation of our terms of service. Those are the rules of the road in terms of content on our platform."

A lot of uncertainty and controversy still surrounds how OpenAI trains Sora, along with ChatGPT and DALL-E, with The Wall Street Journal recently reporting the company plans to use YouTube video transcriptions to train GPT-5. On the other hand, OpenAI competitor Google is apparently respecting the rules — at least when it comes to YouTube (which it owns). Google's AI model Gemini requires similar data to learn but Mohan claims it only uses certain videos, depending on permissions are given in each creator's licensing contract.

This article originally appeared on Engadget at https://www.engadget.com/youtube-ceo-warns-openai-that-training-models-on-its-videos-is-against-the-rules-121547513.html?src=rss

Apple cuts over 700 jobs following its car and display project closures

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Over 700 people at Apple have recently lost their jobs, according to the latest WARN report posted by the Employment Development Department of California (EDD). Most of the people who were laid off worked at Apple's offices in Santa Clara, with 371 of them coming from the company location that primarily dealt with the company's now-defunct electric vehicle project. Under California law, companies are required to file a report with the EDD for each location affected by layoffs under the Worker Adjustment and Retraining Notification (WARN) program. 

Eight Apple locations in Santa Clara were hit by layoffs, including the main car office, though one of them worked on its in-house MicroLED display project that was reportedly scrapped in March due to costs and technical difficulties. The company was hoping to produce its own screens for iPhones, Macs and its smartwatches, but that clearly isn't happening anytime soon. 

Apple's original car ambitions were to build a fully autonomous vehicle without pedals and a steering wheel, until it decided to develop an electric vehicle instead. A previous Bloomberg report said Apple canceled the initiative internally called "Project Titan" after investing billions of dollars and a decade into it. The employees who were developing the vehicle were given the chance to transfer to Apple's other divisions, including its teams that are reportedly working on artificial intelligence and home robotics. But based on Apple's WARN report, it wasn't able to re-integrate everyone into the company. 

Apple is believed to be in the very early stages of developing personal robotics for people's homes. One of the machines that's currently a work-in-progress is a robot that follows people around, while the other is a table-top device that uses a robot to move a display around, according to another Bloomberg report. The company's work on personal robotics is part of its efforts, which also include the Vision Pro, to find new sources of revenue. 

This article originally appeared on Engadget at https://www.engadget.com/apple-cuts-over-700-jobs-following-its-car-and-display-project-closures-061524777.html?src=rss

Apple cuts over 700 jobs following its car and display project closures

Posted on by

Over 700 people at Apple have recently lost their jobs, according to the latest WARN report posted by the Employment Development Department of California (EDD). Most of the people who were laid off worked at Apple's offices in Santa Clara, with 371 of them coming from the company location that primarily dealt with the company's now-defunct electric vehicle project. Under California law, companies are required to file a report with the EDD for each location affected by layoffs under the Worker Adjustment and Retraining Notification (WARN) program. 

Eight Apple locations in Santa Clara were hit by layoffs, including the main car office, though one of them worked on its in-house MicroLED display project that was reportedly scrapped in March due to costs and technical difficulties. The company was hoping to produce its own screens for iPhones, Macs and its smartwatches, but that clearly isn't happening anytime soon. 

Apple's original car ambitions were to build a fully autonomous vehicle without pedals and a steering wheel, until it decided to develop an electric vehicle instead. A previous Bloomberg report said Apple canceled the initiative internally called "Project Titan" after investing billions of dollars and a decade into it. The employees who were developing the vehicle were given the chance to transfer to Apple's other divisions, including its teams that are reportedly working on artificial intelligence and home robotics. But based on Apple's WARN report, it wasn't able to re-integrate everyone into the company. 

Apple is believed to be in the very early stages of developing personal robotics for people's homes. One of the machines that's currently a work-in-progress is a robot that follows people around, while the other is a table-top device that uses a robot to move a display around, according to another Bloomberg report. The company's work on personal robotics is part of its efforts, which also include the Vision Pro, to find new sources of revenue. 

This article originally appeared on Engadget at https://www.engadget.com/apple-cuts-over-700-jobs-following-its-car-and-display-project-closures-061524777.html?src=rss

Only 57 companies produced 80 percent of global carbon dioxide

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Last year was the hottest on record and the Earth is headed towards a global warming of 2.7 degrees, yet top fossil fuel and cement producers show a disregard for climate change and actively make things worse. A new Carbon Majors Database report found that just 57 companies were responsible for 80 percent of the global carbon dioxide emissions between 2016 and 2022. Thirty-eight percent of total emissions during this period came from nation-states, 37 percent from state-owned entities and 25 percent from investor-owned companies. 

Nearly 200 parties adopted the 2015 Paris Agreement, committing to reduce greenhouse gas emissions. However, 58 of the 100 state- and investor-owned companies in the Carbon Majors Database have increased their production in the years since (The Climate Accountability Institute launched Carbon Majors in 2013 to hold fossil fuel producers accountable and is hosted by InfluenceMap). This number represents producers worldwide, including 87 percent of those assessed in Asia, 57 percent in Europe and 43 percent in North America. 

It's not a clear case of things slowly turning around, either. The International Energy Agency found coal consumption increased by eight percent over the seven years to 8.3 billion tons — a record high. The report names state-owned Coal India as one of the top three carbon dioxide producers. Russia's state-owned energy company Gazprom and state-owned oil firm Saudi Aramco rounded out the trio of worst offenders. 

Exxon Mobil topped the list of United States companies, contributing 1.4 percent of global carbon dioxide emissions. "These companies have made billions of dollars in profits while denying the problem and delaying and obstructing climate policy. They are spending millions on advertising campaigns about being part of a sustainable solution, all the while continuing to invest in more fossil fuel extraction," Tzeporah Berman, International Program Director at Stand.earth and Chair at Fossil Fuel Non-Proliferation Treaty, said in a statement. "These findings emphasize that, more than ever, we need our governments to stand up to these companies, and we need new international cooperation through a Fossil Fuel Treaty to end the expansion of fossil fuels and ensure a truly just transition." 

This article originally appeared on Engadget at https://www.engadget.com/only-57-companies-produced-80-percent-of-global-carbon-dioxide-130752291.html?src=rss

Only 57 companies produced 80 percent of global carbon dioxide

Posted on by

Last year was the hottest on record and the Earth is headed towards a global warming of 2.7 degrees, yet top fossil fuel and cement producers show a disregard for climate change and actively make things worse. A new Carbon Majors Database report found that just 57 companies were responsible for 80 percent of the global carbon dioxide emissions between 2016 and 2022. Thirty-eight percent of total emissions during this period came from nation-states, 37 percent from state-owned entities and 25 percent from investor-owned companies. 

Nearly 200 parties adopted the 2015 Paris Agreement, committing to reduce greenhouse gas emissions. However, 58 of the 100 state- and investor-owned companies in the Carbon Majors Database have increased their production in the years since (The Climate Accountability Institute launched Carbon Majors in 2013 to hold fossil fuel producers accountable and is hosted by InfluenceMap). This number represents producers worldwide, including 87 percent of those assessed in Asia, 57 percent in Europe and 43 percent in North America. 

It's not a clear case of things slowly turning around, either. The International Energy Agency found coal consumption increased by eight percent over the seven years to 8.3 billion tons — a record high. The report names state-owned Coal India as one of the top three carbon dioxide producers. Russia's state-owned energy company Gazprom and state-owned oil firm Saudi Aramco rounded out the trio of worst offenders. 

Exxon Mobil topped the list of United States companies, contributing 1.4 percent of global carbon dioxide emissions. "These companies have made billions of dollars in profits while denying the problem and delaying and obstructing climate policy. They are spending millions on advertising campaigns about being part of a sustainable solution, all the while continuing to invest in more fossil fuel extraction," Tzeporah Berman, International Program Director at Stand.earth and Chair at Fossil Fuel Non-Proliferation Treaty, said in a statement. "These findings emphasize that, more than ever, we need our governments to stand up to these companies, and we need new international cooperation through a Fossil Fuel Treaty to end the expansion of fossil fuels and ensure a truly just transition." 

This article originally appeared on Engadget at https://www.engadget.com/only-57-companies-produced-80-percent-of-global-carbon-dioxide-130752291.html?src=rss

George Carlin’s estate settles lawsuit against podcasters’ AI comedy special

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There will be no follow-up to that AI-generated George Carlin comedy special released by the podcast Dudesy. In January, Carlin's estate filed a lawsuit against the podcast and its creators Will Sasso and Chad Kultgen, accusing them of violating the performer's right to publicity and infringing on a copyright. Now, the two sides have reached a settlement agreement, which includes the permanent removal of the comedy special from Dudesy's archive. Sasso and Kultgen have also agreed never to repost it on any platform and never to use Carlin's image, voice or likeness without approval from the estate again, according to The New York Times. 

The AI algorithm that Dudesy used for the special was trained on thousands of hours of Carlin's routines that spanned decades of his career. It generated enough material for an hour-long special, but it did a pretty poor impression of the late comedian with basic punchlines and very little of what characterized Carlin's humor. In a statement, Carlin's daughter Kelly called it a "poorly-executed facsimile cobbled together by unscrupulous individuals."

Josh Schiller, who represented the Carlin estate in court, told The Times that "[t]he world has begun to appreciate the power and potential dangers inherent in AI tools, which can mimic voices, generate fake photographs and alter video." He added that it's "not a problem that will go away by itself" and that it "must be confronted with swift, forceful action in the courts." The companies making AI software "must also bear some measure of accountability," the lawyer said. 

This lawsuit is just one of the many filed by creatives against AI companies and the people that use the technology by training algorithms on someone's work. Several non-fiction authors and novelists that include George R.R. Martin, John Grisham and Jodi Picoult sued OpenAI for using their work to train its large language models. The New York Times and a handful of other news organizations also sued the company for using their articles for training and for allegedly reproducing their content word-for-word without attribution. 

This article originally appeared on Engadget at https://www.engadget.com/george-carlins-estate-settles-lawsuit-against-podcasters-ai-comedy-special-075224304.html?src=rss