Tag Archives: Sectors & Industries

Big tech companies agree to not ruin your electric bill with AI data centers

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Today the White House announced that several major players in tech and AI have agreed to steps that will keep electricity costs from rising due to data centers. Under this Ratepayer Protection Pledge, companies are agreeing to practices that are intended to protect residents from seeing higher electricity costs as more and more businesses create power-hungry data centers. Amazon, Google, Meta, Microsoft, OpenAI, Oracle and xAI have all apparently signed on. A few of the participants — Amazon, Google and Meta — had conveniently timed press releases patting themselves on the back for their participation and touting whatever other policies they have for mitigating the negative impacts of data center construction.

The main provisions of the federal pledge have tech companies agreeing to "build, bring, or buy the new generation resources and electricity needed to satisfy their new energy demands, paying the full cost of those resources." It also claims they will pay for any needed power infrastructure upgrades and operate under separate rate structures for power that will see payments made whether or not the business uses that electricity.

The pledge doesn't appear to be any form of binding agreement and there's no discussion of enforcement or a penalty for companies that don't honor the stipulated provisions. It also doesn't address any of the other impacts data centers and AI development might be having, either on local communities, on other utilities and resources, or on access to critical computing elements like RAM.

This article originally appeared on Engadget at https://www.engadget.com/ai/big-tech-companies-agree-to-not-ruin-your-electric-bill-with-ai-data-centers-230102956.html?src=rss

Big tech companies agree to not ruin your electric bill with AI data centers

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Today the White House announced that several major players in tech and AI have agreed to steps that will keep electricity costs from rising due to data centers. Under this Ratepayer Protection Pledge, companies are agreeing to practices that are intended to protect residents from seeing higher electricity costs as more and more businesses create power-hungry data centers. Amazon, Google, Meta, Microsoft, OpenAI, Oracle and xAI have all apparently signed on. A few of the participants — Amazon, Google and Meta — had conveniently timed press releases patting themselves on the back for their participation and touting whatever other policies they have for mitigating the negative impacts of data center construction.

The main provisions of the federal pledge have tech companies agreeing to "build, bring, or buy the new generation resources and electricity needed to satisfy their new energy demands, paying the full cost of those resources." It also claims they will pay for any needed power infrastructure upgrades and operate under separate rate structures for power that will see payments made whether or not the business uses that electricity.

The pledge doesn't appear to be any form of binding agreement and there's no discussion of enforcement or a penalty for companies that don't honor the stipulated provisions. It also doesn't address any of the other impacts data centers and AI development might be having, either on local communities, on other utilities and resources, or on access to critical computing elements like RAM.

This article originally appeared on Engadget at https://www.engadget.com/ai/big-tech-companies-agree-to-not-ruin-your-electric-bill-with-ai-data-centers-230102956.html?src=rss

Amazon Germany fined $70 million for ‘influencing’ third-party Marketplace pricing

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The Bundeskartellamt, or the Federal Cartel Office of Germany, has prohibited Amazon from continuing its practice of using mechanisms to control the prices charged by sellers on its platform in the country. Germany’s competition regulator explained that the company uses “various price control mechanisms” to review prices set by third-party Markerplace sellers. If the website deems a specific listing’s pricing as too high, it allegedly removes the listing altogether or prevents it from being prominently displayed in the Buy Box section that lets you quickly purchase items. If those listings aren’t removed completely, they’re banished to less prominent sections like in the “See all buying options” and the “Other sellers on Amazon” lists. This reduced visibility could “lead to significant losses in sales” for sellers.

Amazon was found to have engaged in anti-competitive practices, because the company itself runs its own retail business and sells goods on the platform. That makes third-party sellers, which make up for 60 percent of the items sold on the website, direct competitors. Cartel Office president Andreas Mundt said Amazon must only be allowed to influence competitors’ pricing “in the most exceptional cases,” such as “in the event of excessive pricing.” He didn’t specify what the agency views as “excessive pricing,” but he said allowing the company to continue its current practices will give it the power to “control the price level on the trading platform according to its own ideas.” He also said that Amazon could use its mechanisms “to compete with the rest of the online retail sector outside”of its own website. Amazon’s interference could lead to third-party sellers “no longer being able to cover their own costs, forcing them out of the Marketplace,” he added.

Rocco Bräuniger, Amazon’s country manager for Germany, told Bloomberg that the company will appeal the ruling and will continue operating as usual. “Amazon would be the only retailer in Germany forced to highlight non-competitive prices for customers,” he said. ”This makes no sense for customers, sales partners, or competition.” He also asserted that the office’s decision will throttle innovation in the European Union.

Amazon has been under scrutiny in Europe for years now. Back in 2022, it pledged not to use private sellers’ data to compete with them in the Marketplace in the EU. It also promised to give sellers "equal treatment” when ranking them in the Buy Box section.

“The Bundeskartellamt considers this systematic interference in the Marketplace sellers’ freedom to set their own prices to constitute an abuse under the special provisions for large digital companies (Section 19a(2) of the German Competition Act (GWB)) as well as a violation of the general abuse provisions under Section 19 GWB and Article 102 TFEU,” the agency wrote. “…In these proceedings, the Bundeskartellamt has worked closely with the European Commission, which is responsible for enforcing the EU Regulation on contestable and fair markets in the digital sector (Digital Markets Act).”

The agency is slapping Amazon with a fine due to those violations, but the $70 million penalty it’s asking for is merely partial payment based on the economic benefits the company enjoyed from its alleged anti-competitive behaviors. According to the Bundeskartellamt, the identified antitrust violations are still ongoing, so Amazon may have to pay more.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/amazon-germany-fined-70-million-for-influencing-third-party-marketplace-pricing-140000588.html?src=rss

Amazon Go and Fresh stores are closing as Amazon focuses on grocery delivery and Whole Foods

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Amazon is rethinking its grocery business, and as part of that, it will shut down all of its remaining Amazon Go and Amazon Fresh physical stores. The company will convert some locations into Whole Foods Market stores. 

"While we've seen encouraging signals in our Amazon-branded physical grocery stores, we haven't yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion," the company wrote in a blog post. Amazon added that it would help workers at Go and Fresh stores to find positions elsewhere within the company.

For now, Amazon is focusing its grocery efforts on Fresh deliveries, Amazon Now (a 30-minutes-or-less delivery option it recently introduced to compete with DoorDash and Instacart) and Whole Foods. It plans to open more than 100 new Whole Foods Market stores over the next few years. 

Amazon also says it will introduce new types of physical locations in the coming years. One concept it's considering is a "supercenter" that would offer a broad selection of goods from Amazon, including household items, groceries and "general merchandise." I dunno, that just sounds like a supermarket to me.

Meanwhile, the checkout-less Just Walk Out tech that the company implemented in Go and Fresh stores is still in use at third-party locations, including hospital cafeterias and sports arenas. Amazon has also deployed it in break rooms in dozens of its warehouses to help "employees maximize break time by grabbing meals without checkout delays." It’s definitely not to keep closer tabs on workers, I’m sure.

This article originally appeared on Engadget at https://www.engadget.com/general/amazon-go-and-fresh-stores-are-closing-as-amazon-focuses-on-grocery-delivery-and-whole-foods-180448412.html?src=rss

FTC finalizes GM punishment over driver data sharing scandal

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After reaching a proposed settlement last year, the FTC has banned General Motors from sharing specific consumer data with third parties, TechCrunch reported. The finalized order wraps up one of the more egregious cases of a corporation collecting its customers' data and then using it against them. 

Two years ago, the New York Times report released a report detailing how GM's OnStar "Smart Driver" program collected and sold detailed geolocation and driving behavior data to third parties, including data brokers. Those brokers in turn sold the data to insurance providers, which jacked up the rates for some drivers based on the data. "It felt like a betrayal," said a Chevy Bolt owner that saw his insurance rise by 21 percent based on the data. "They’re taking information that I didn’t realize was going to be shared and screwing with our insurance."

According to the terms of the settlement, GM is barred from sharing specific user data with consumer reporting agencies for a five year period. The automaker is also required to request user permission before collecting, using or sharing vehicle data with any third party. It must do that when a consumer purchases a car at a dealership, with the customer asked in person whether they agree or not with the data collection, GM said. 

Some of the settlement is moot as GM stopped its Smart Driver program for all brands in April 2024. The company unenrolled all customers and stopped its third-party relationship with LexisNexis and Verisk, the brokers that sold driver data to insurance companies. 

GM faced other actions over the data collection, including lawsuits from Texas, Nebraska and other states. "Our investigation revealed that General Motors has engaged in egregious business practices that violated Texans’ privacy and broke the law. We will hold them accountable," said Texas AG Ken Paxton at the time. 

In a statement to TechCrunch, GM said: "The Federal Trade Commission has formally approved the agreement reached last year with General Motors to address concerns. As vehicle connectivity becomes increasingly integral to the driving experience, GM remains committed to protecting customer privacy, maintaining trust, and ensuring customers have a clear understanding of our practices." 

This article originally appeared on Engadget at https://www.engadget.com/transportation/ftc-finalizes-gm-punishment-over-driver-data-sharing-scandal-130012313.html?src=rss

Texas authorities have made multiple arrests in an NVIDIA GPU smuggling operation

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The Southern District of Texas announced the seizure of more than $50 million in NVIDIA GPUs bound for China in violation of US export laws. Authorities arrested two businessmen, one of them the owner of a Houston company, accused of smuggling the chips used to train and run AI models.

“Operation Gatekeeper has exposed a sophisticated smuggling network that threatens our Nation’s security by funneling cutting-edge AI technology to those who would use it against American interests,” said US Attorney Nicholas J. Ganjei. The investigation had been ongoing since at least last year and centers on the illicit export or attempted export of at least $160 million worth of NVIDIA H100 and H200 GPUs. The H200 chips are the very same that the Trump administration announced a revenue-sharing agreement for today, allowing NVIDIA to sell them to “approved customers” in China.

The smuggling operation used a combination of falsified paperwork, purposefully misclassified goods, straw purchasers and even removing the NVIDIA labels on GPUs to ship them to both mainland China and Hong Kong. The conspirators face between 10 and 20 years in prison if convicted.

The H200 chips in question are more powerful than the H20 chip specifically designed to comply with US export restrictions. Production of the H20, however, was reportedly halted shortly after the Trump administration struck a revenue-sharing deal with NVIDIA, after which China began heavily discouraging local companies from buying them.

Illicit sales to China are nothing new and occur against the backdrop of an AI technology race and tight export controls. NVIDIA is still prevented from selling its highest-end Blackwell chips to China, with the US hoping to keep an edge over foreign competition.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/texas-authorities-have-made-multiple-arrests-in-an-nvidia-gpu-smuggling-operation-144749526.html?src=rss

Meta and Google delay undersea cables over security concerns

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Meta and Google are facing delays with long-promised undersea cable projects, according to a report by Bloomberg. A Meta spokesperson blames the delays on a "range of operational factors, regulatory concerns and geopolitical risk."

Meta's 2Africa subsea cable system is supposed to wrap around the African continent to deliver fiber internet to the region. It's also intended to connect Europe with Asia and Africa. The 28,000-mile project was first announced all the way back in 2020.

However, the company has experienced issues when running cable through the southern portion of the Red Sea. A whole section has yet to be built due to regional conflicts and difficulty obtaining certain permits from local governments.

The Google-backed Blue-Raman intercontinental cable system has also been delayed in the region, after first being announced in 2021. This system was originally supposed to go live in 2024, connecting countries like France, Italy, India, Israel, Jordan, Saudi Arabia and Oman. The company has not provided an updated timetable.

These are just two examples, as plenty of other fiber internet cables have yet to go live in the Red Sea. Builders have experienced repeated missile attacks, allegedly by the Iran-backed Houthis, which forced them on lengthy detours and disrupted work.

"They are not only unable to monetize their investments by sending data over these cables, but they are forced to purchase capacity on alternative cables to meet their near-term requirements," said Alan Mauldin, research director at telecommunications firm Telegeography.

It's worth noting that these delays shouldn't impact two previously announced undersea fiber projects by Google and Meta. Google is building a cable to connect Togo to Europe, which will wrap around the Atlantic side. Meta is building a gigantic cable system that looks to connect five continents, which isn't crossing the Red Sea.

Undersea cables are a great way to give the various regions of the world fiber internet, but there are some downsides. We've already covered geopolitical concerns when it comes to building, but the installed cables can tear and break. This is typically caused by natural disasters, extreme weather and human activities like fishing.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/meta-and-google-delay-undersea-cables-over-security-concerns-163508037.html?src=rss

Tesla shareholders approve Elon Musk’s $1 trillion compensation package

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Tesla’s shareholders have voted in favor of a compensation plan that could see CEO Elon Musk become the world's first trillionaire. The potential incentives were laid out in September, and the company's shareholders have agreed to allow this all-or-nothing package for its chief exec, who spent the first half of this year decimating the US federal government rather than working on any Tesla-adjacent projects. 

The compensation plan lists several targets that the company must reach for Musk to reap the vast rewards. Tesla must reach a market value of $8.5 trillion, compared with its current worth of about $1.4 billion. Other requirements are metrics-based, such as selling a million robots with humanoid qualities, while others are strategic, such as establishing a succession plan for future Tesla leadership. Musk also has a lot of other irons in the fire across SpaceX and xAI, so the incentives may be an effort to keep the CEO focused on generating more money for this specific group of supporters.

Presently, most times the Tesla name makes headlines, it's not for good press. The company coupled record-high revenue with tumbling profits in its Q3 2025 financial results. Just during October, it was the subject of multiple investigations by the National Highway Traffic Safety Administration and incurred the wrath of the California Department of Insurance.

This article originally appeared on Engadget at https://www.engadget.com/tesla-shareholders-approve-elon-musks-1-trillion-compensation-package-233217531.html?src=rss

TSMC has reportedly cut off a company that sent its chips to Huawei

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Chipmaking giant Taiwan Semiconductor Manufacturing Co. (TSMC) halted semiconductor shipments to a client that may have illegally sent the chips on to Huawei, according to Bloomberg. That follows reports that TSMC had informed the US government that its chips appeared in one of Huawei's AI accelerators. There's no confirmation on whether the company was acting on Huawei's behalf or where it's based. 

TSMC cut off shipments to the entity in mid-October after it noticed that the same chips had appeared in Huawei products. It notified the US and Taiwanese governments of this latest development and is further probing the matter, Bloomberg's sources said. They asked not to be identified given the sensitive nature of the matter. 

Yesterday, Bloomberg and The Financial Times reported that Canadian research firm TechInsights had spotted TSMC chips in a Huawei AI accelerator, a clear violation of US sanctions. That brought into question how Huawei had obtained those chips, with a third-party company being a strong possibility. 

In 2020, the US Commerce Department implemented trade restrictions against Huawei that barred the company from obtaining chips made by foreign firms. Earlier this year, the US government further tightened restrictions by revoking its licenses with Intel and Qualcomm to produce chips for its devices.

In a previous statement provided to the Commerce Department, TSMC denied any working relationship with Huawei since mid-September of 2020. TSMC also told Bloomberg that it hasn’t produced any chips for Huawei due to the amended restrictions. For its part, Huawei said in a statement yesterday that it hasn't used any chips sourced from TSMC since the 2020 restrictions were enacted. 

Rather than using TSMC, Huawei was supposedly obtaining chips from a local partner, China's Semiconductor Manufacturing International Corp. (SMIC) — including a 7-nanometer processor for Huawei smartphones. However, US officials doubted that SMIC could build such chips at sufficient scale to meet market demand. 

This article originally appeared on Engadget at https://www.engadget.com/mobile/smartphones/tsmc-has-reportedly-cut-off-a-company-that-sent-its-chips-to-huawei-124900342.html?src=rss

GM and Hyundai plan to work together on cars and clean-energy tech

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It's not totally uncommon for major automakers to buddy up on projects, share their knowledge and try to find ideas that benefit all parties. The latest to snuggle up are GM and Hyundai. Through their collaboration, they hope to improve their competitiveness while trying to reduce the costs and risks involved with developing new tech.

The two companies have signed a non-binding agreement and they'll immediately start assessing joint opportunities and working toward binding agreements. According to GM CEO Mary Barra, the aim "is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently."

Projects that the two sides are looking at working on together include co-development and production of passenger and commercial vehicles, internal combustion engines and electric and hydrogen clean energy tech. They'll also explore supply chain efficiency — combined sourcing for the likes of battery raw materials and steel could save them both a bundle. GM and Hyundai will look into ways that they can harness their scale and knowhow to do all of this while reducing costs.

It might be a while before we see any fruits of these labors, but it's smart for automakers to team up and try to reduce costs, especially with the EV market being somewhat dicey. Ford's EV division, for instance, is on track to lose around $5 billion this year.

There are other types of partnerships between automakers, of course. In June, Volkswagen and Rivian teamed up, with the former expected to invest $3 billion into the EV company and a further $2 billion on a joint venture between the two sides.

This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/gm-and-hyundai-plan-to-work-together-on-cars-and-clean-energy-tech-162625133.html?src=rss