Elon Musk, His 16-Foot Barrier, and the Ongoing Dispute with His Texas Neighbor

Posted on May 5, 2025 by Igor Mitreski

At first, residents of an upscale cul-de-sac in Westlake Hills, Texas, were unaware of who occupied the 6,900-square-foot, six-bedroom mansion next door.

This changed when construction crews arrived, erecting a 16-foot chain-link fence around the $6 million property. Positioned among four homes on a lush green street, the complex also featured an outward-facing camera. Soon after, a fleet of vehicles, many Tesla models, began to clutter the streets. Security personnel began shifting in and out three times daily. On one occasion, a driver shouted in the middle of the night about seeking a party at “E’s House.”

Residents expressed dissatisfaction with the keypad-controlled gates that frequently opened and closed, causing traffic congestion from workers and vehicles. Even after word spread that their new neighbor was Elon Musk, the world’s wealthiest man, many continued to voice complaints regarding his mansion to the city of Westlake Hills.

The discontent escalated, invoking city ordinances, permits, and exceptions. Musk’s housing dilemma was discussed during a contentious zoning and planning committee meeting last month, with further discussions set for the Westlake Hills City Council session on May 14th.

“We need to stop shuttling service workers to other residences, parking cars on quiet streets, and washing vehicles at other homes,” wrote neighbor and primary complainant Paul Hemmer to the Zoning and Planning Commission. His letter was co-signed by residents from two additional homes on the street.

Over recent months, Musk, 53, has disrupted long-standing conventions while criticizing what he views as unnecessary federal bureaucracy. Yet, in his own backyard near Austin, he faces challenges posed by local regulations and intricate red tape, revealing that no one is immune to neighborhood disputes.

Prominent figures like Mark Zuckerberg have experienced similar issues, where disagreements over luxurious properties have tested their wealth and influence. Musk, however, has found himself at odds with local government as he failed to secure permits for the metal gates and fences around his property, which exceeded legal height limits by 10 feet, prompting violations of six city ordinances. Musk’s team later sought retroactive approval following community discontent.

Jim Pledger, one of six commissioners on the Westlake Hills Zoning and Planning Commission, mentioned that he and his colleagues unanimously recommended homeowners refrain from voicing complaints against Musk. “If an exception is made,” Pledger warned, “we’d be inadvertently encouraging rule-breaking.”

Unless the city council votes against this resolution, Musk may face requirements to dismantle the fences and gates and alter them to align with municipal regulations.

Musk did not respond to request for comments, while property managers associated with him refrained from making statements.

Musk’s Texas ventures started relatively recently, moving the operations of several companies from California to the state around 2021. He has established factories for the electric car manufacturer Tesla, the aerospace firm SpaceX, and a tunneling enterprise in Austin and nearby Bastrop.

Additionally, Musk relocated to Austin, initially planning to construct a home for himself and his children on hundreds of acres (he owns at least 13). Afterward, he explored other properties.

In 2022, Musk acquired a Westlake Hills residence through a limited liability company. The home is nestled in a residential area, positioned at the bottom of a sloping two-acre lot adjacent to a narrow public road, complicating security efforts.

“Shouldn’t a castle be on a hill?” remarked Anne Yekel, a longtime Westlake Hills resident living nearby. “These buyers were sophisticated, and if security is the primary concern, this isn’t the right property.”

Musk and his team did not introduce themselves to local residents, and few have encountered him. However, the news of his presence spread quickly within the 3,400-member community.

“It’s common knowledge here,” Yekel noted.

The mansion is one of three properties Musk has purchased in the area over the last three years, forming compounds for his children and their mothers. At one point, Claire Boucher, known as Grimes, resided in the home with Musk and his three children, while his child Shivon Zilis lives about a 10-minute walk away. Musk reportedly purchased another Tuscan-style mansion around a year ago.

Neighbors quickly grew tired of the continuous activity around Musk’s residence, noticing security personnel carrying firearms and an increase in Musk’s heightened security measures. While Texas law permits gun ownership, this level of activity was unexpected.

“I refer to it as Fort Knox,” quipped Hemmer, a retired real estate agent and president of the Neighborhood Homeowners Association, who lives across the street.

The house was tranquil on days when Musk was out of town, and locals noted his frequent absences, especially in recent months, as he advised President Trump. Now, residents are left anticipating Musk’s return, which might mean reduced activities in the capital.

Some neighbors voiced particular frustration about the towering fence at the front and the large metal gates presumably serving as an entrance for staff.

Hemmer, a long-time Tesla owner, grew increasingly frustrated with Musk’s activities and began using drones to monitor the property for any city violations. He formally complained to Westlake Hills officials about various issues, including the fence and the perceived traffic generated by Musk’s security team.

Musk’s security team also contacted the Westlake Hills Police Department regarding Hemmer, as documented in city records. One incident involved a security officer claiming Hemmer was found naked in the street last year.

Hemmer refuted this allegation, stating he was merely wearing black underwear on his property. On another occasion, he explained how he was out walking his dog when he needed to urinate, causing Musk’s camera to capture him in the act.

“The camera caught me,” Hemmer shared. “It’s unsettling to think they’re watching my every move.”

Following Hemmer’s multiple complaints, Westlake Hills officials confirmed that Musk had violated city ordinances regarding the fence and gates. The issue was discussed in the recent planning and zoning committee meeting, focusing on the potential for project diversification.

Before the meeting, Tisha Litta, a licensing expert for Musk’s limited liability company, submitted a letter to the Planning Committee seeking relief from the city’s regulations.

“As high-profile individuals, homeowners face ongoing security threats, making enhanced safety measures crucial,” she wrote. Litta did not return requests for comments.

Hemmer and other residents also wrote to the Planning Commission, cautioning against encouraging “poor behavior” in their otherwise peaceful neighborhood.

For a time, it seemed Musk was on track to triumph in his local disputes. Planning and Zoning officials suggested granting “variances” for his property, which would allow him to keep the fences and make minor modifications. However, at the planning meeting, the commissioners opted against granting Musk any exceptions, questioning Litta about the lack of prior permission for construction.

“I just met the property owners last year, and unfortunately, they were under the guidance of a property manager,” she stated, according to meeting records.

Hemmer also mentioned that he suspected the homeowner might be misleading when he spoke during the meeting.

“If you follow the news, he consistently gets called out for starting projects and only later asking for permission,” he remarked.

One unidentified commissioner expressed disbelief that Westlake Hills staff were advocating for exceptions based on who was making the request.

“It’s astonishing that staff are presenting various recommendations based on who is asking,” she remarked.

Decisions made by the Planning Commission do not finalize the process. Upcoming discussions at the Westlake Hills City Council meeting will determine whether to adhere to the committee’s recommendations regarding Musk’s residence.

Should the city council vote against Musk, he may resort to legal action against the town. If that fails, considering his history with campaigns, there will always be subsequent local elections to anticipate.

Kirsten Neus Contributed research.

Source: www.nytimes.com

Despite Advances in Technology, AI Hallucinations Are Intensifying

Posted on May 5, 2025 by Igor Mitreski

Last month, AI bots managing technical support for cursors, emerging tools for computer programmers, informed numerous customers about alterations to the company’s policy. They stated that using cursors on a different computer was no longer permitted.

In a frustrated post on the Internet Message Board, a customer expressed their discontent. Some users even canceled their cursor accounts, and others were irate upon discovering the misunderstanding. AIBOT had mentioned a non-existent policy change.

“Such a policy does not exist. Users can indeed utilize their cursor across multiple devices.” I posted on Reddit. “Regrettably, this is an inaccurate response from the AI support bot.”

Two years post the launch of CHATGPT, tech companies, office workers, and everyday users have increasingly turned to AI bots for a diverse array of tasks. Yet, there remains no reliable mechanism to guarantee the accuracy of the information these systems provide.

The latest advanced technologies—so-called inference systems from firms like OpenAI, Google, and the Chinese startup Deepseek—are producing fewer errors. The connection to factuality has sharpened as the mathematical capabilities have enhanced. The exact reason for this improvement remains somewhat unclear.

Contemporary AI bots are built upon intricate mathematical structures that learn by analyzing vast amounts of digital data. They lack the ability to discern truth from falsehood. Sometimes, they fabricate information, leading some AI researchers to describe it as ‘hallucination.’ In one assessment, the hallucination rate for the new AI system reached 79%.

These models utilize mathematical probabilities to deduce the most appropriate response instead of adhering strictly to guidelines established by human engineers. Thus, errors are inevitable. “Despite our efforts, hallucination will always persist,” said Amr Awadallah, CEO of Vectara, a startup developing AI tools for enterprises and a former Google executive. “It’s unavoidable.”

For years, this issue has raised doubts concerning the reliability of these systems. While they can be beneficial in specific contexts, such as drafting term papers, summarizing office documents, or coding, their inaccuracies pose significant challenges.

AI bots integrated with search engines like Google or Bing can generate laughable and erroneous search results. If you inquire about a popular marathon on the West Coast, they might point you to a race in Philadelphia. When asked for household statistics in Illinois, they could cite a source that doesn’t contain that information.

While these hallucinations may not significantly affect many users, they present serious concerns for those relying on technology for legal documents, medical data, or sensitive business information.

“We invest substantial time discerning which responses are factual and which are not,” remarked Pratik Verma, co-founder and CEO of Okaff, a firm assisting businesses in navigating hallucination issues. “If these inaccuracies are not adequately addressed, the value of an AI system diminishes. The goal is to automate tasks.”

Cursor and Truell did not respond to requests for comments.

Over the past two years, firms such as OpenAI and Google have consistently enhanced their AI systems and decreased the frequency of these errors. However, the latest inference systems are showing an uptick in mistakes. According to internal evaluations, OpenAI’s newest systems hallucinate more often than their predecessors.

The company determined that O3 (its most advanced system) exhibited a 33% hallucination rate during the PersonQA benchmark tests, which involve answering questions about public figures—over twice the hallucination rate of their previous inference system named O1. The newly released O4-MINI showed an even steeper hallucination rate of 48%.

Another evaluation, SimpleQA, which poses more generalized questions, revealed hallucination rates of 51% and 79% for O3 and O4-MINI, respectively, while the earlier system, O1, came in at 44%.

In a paper outlining the tests, OpenAI noted that further research is required to understand these results. Given that AI systems learn from more data than a human can process, it is challenging for technicians to discern their behavior.

“Hallucination is not inherently common in reasoning models, but we are actively striving to decrease the percentage of hallucinations observed in O3 and O4-MINI,” Gaby Raila commented. “We will continue our exploration of hallucinations across all models to enhance accuracy and reliability.”

Hannane Hajisiltzi, a professor at the University of Washington and a researcher at the Allen Institute of Artificial Intelligence, is part of a team that recently developed methods to monitor the behavior of these systems. Trained individual data allows for some tracking. Nevertheless, this tool cannot clarify everything because the systems learn from a vast dataset capable of generating almost any output. “We still do not fully understand how these models operate,” she remarked.

Tests by independent organizations and researchers reveal that inference models from companies including Google and Deepseek are also showing rising hallucination rates.

Since late 2023, Vectara, Awadallah’s company, has been monitoring how frequently chatbots deviate from the truth. They assign these systems simple, verifiable tasks, such as summarizing particular news articles, yet chatbots continually fabricate information.

Initial surveys by Vectara estimated that, in this context, chatbots presented incorrect information at least 3% of the time and sometimes as high as 27%.

Over the next eighteen months, companies like OpenAI and Google reduced these figures to a range of 1% to 2%. Startups in San Francisco, such as Humanity, floated around 4%. Nevertheless, hallucination rates for this assessment have been rising alongside the advancement of inference systems. Deepseek’s reasoning model, R1, hallucinated 14.3% of the time, while OpenAI’s O3 reached 6.8%.

(The New York Times has filed a lawsuit against OpenAI and its partner Microsoft, claiming copyright infringement over news content related to AI systems. Both OpenAI and Microsoft have denied these allegations.)

For years, companies like OpenAI operated under the simplistic assumption that feeding more internet data into AI systems would enhance performance. However, they eventually exhausted nearly all online English text and required alternative methods to improve their chatbots.

Consequently, these companies are increasingly adopting what scientists refer to as reinforcement learning. In this approach, the system learns through trial and error, proving effective in specific domains like mathematics and computer programming, but lacking in others.

“The training approach for these systems tends to focus on one task while neglecting others,” commented Laura Perez-Bertracini, a researcher at the University of Edinburgh, who is part of a team investigating hallucination issues in depth.

Another drawback is that inference models are crafted to spend time “thinking” through complex problems before reaching answers. Consequently, as they solve problems step by step, they risk hallucination at each stage. Errors can compound as they linger over them.

The latest bots transparently reveal each step to users, meaning users can witness each mistake made. Researchers often assert that the steps indicated by bots are unrelated to the final answer.

“The system’s perception of ‘thinking’ does not necessarily equate to actual cognitive processing,” remarked Aryo Pradipta Gema, an AI researcher and fellow at the University of Edinburgh.

Source: www.nytimes.com

Introducing… Anita Dump! The Facebook Group for the Wildest Drug Names – Both Good and Bad!

Posted on May 4, 2025 by Igor Mitreski

I distinctly recall the moment I discovered it. Back in university, seated in a plush auditorium that felt slightly uncomfortable. Ping. A notification from Messenger: “Now with LOL,” my best friend texted from 14 kilometers away, without incurring any student debt. I clicked the link.

It was then that I stumbled upon one of the most significant social media communities ever. The Facebook group, simply titled “Drag Name!!!!!,” was vibrant and inviting.

The exuberance in the names and exclamation points speaks volumes. It’s a gathering space for thousands who revel in sharing the cleverest drag queen names.

“When you play with these words, you can almost sense the formation of new gray matter”: A typical post from the Facebook group. Photo: Facebook

It’s organized this way: every day (or whenever creativity strikes), members toss a theme into the mix. Think “biscuits,” “afterlife,” or “unethical.” Then, names start rolling in. For “chocolate,” one participant might suggest Emmanem, another offers Lindor Evangelista, and a particularly clever entry could be she/her.

I felt an immediate spark of inspiration. That day, during the lecture, I realized that no idea of mine could rival the boundless creativity of a 55-year-old man from Missouri.

Some contributions are instantly recognizable. For instance, a photo-inspired name could be Paula Lloyd. Breakfast might yield Shak Shuker, and a humorous take could be Dee Parton for the deceased.

Others require a moment of reflection, and their brilliance becomes even more rewarding. “The Merciful Drug Name” encompasses options like Hildadropen, Karen’s Attention, and Maya L Pue.

Hilda Dooropen, Karen Atterness, Maya L Pugh…, Linda Helping Hand. Photo: Facebook

I now see clever names everywhere. I sipped my coffee, recalling my favorite: flat white. When writing, I think of myself as a young journalist: Page Turner. After brewing, I might refer to myself as Anita Dump. In this world of words, I can almost feel new gray matter forming, as beneficial to my brain as learning new languages.

A few years back, I had the chance to interview pop sensation Dua Lipa during her visit to Australia for World Pride. I had to ask—did she come up with a drag name for the occasion? If not, how about Duo Apple?

Drag your name!!!!!! It’s a celebration of camp creativity, a blend of humor and joyful expression. The only guideline is to ensure that the name you propose hasn’t been shared before. This allows members to dive into an imaginative realm where they uncover the most delightful creations.

Unlike many groups, this one seems to be devoid of internal conflicts. There’s little risk of harmful disagreements; if they arise, they’ll likely spark even more fantastic names. Try the DEE platform.

Here, individuals from all backgrounds unite around a shared goal: to invent the most captivating names imaginable. Other online communities often lack this spirit of support.

Perhaps drag names embody true community spirit and joy—and what I dare to say is the essence of life? Call me a modern-day Hemingway, as the people truly are the gospel.

Source: www.theguardian.com

Key Concept: Can We Prevent AI from Rendering Humans Obsolete? | Artificial Intelligence (AI)

Posted on May 4, 2025 by Igor Mitreski

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At present, many major AI research labs have teams focused on the potential for rogue AIs to bypass human oversight or collaborate covertly with humans. Yet, more prevalent threats to societal control exist. Humans might simply fade into obsolescence, a scenario that doesn’t necessitate clandestine plots but rather unfolds as AI and robotics advance naturally.

Why is this happening? AI developers are steadily perfecting alternatives to virtually every role we occupy—economically, as workers and decision-makers; culturally, as artists and creators; and socially, as companions and partners. Fellow—when AI can replicate everything we do, what relevance remains for humans?

The narrative surrounding AI’s current capabilities often resembles marketing hype, though some aspects are undeniably true. In the long run, the potential for improvement is vast. You might believe that certain traits are exclusive to humans that cannot be duplicated by AI. However, after two decades studying AI, I have witnessed its evolution from basic reasoning to tackling complex scientific challenges. Skills once thought unique to humans, like managing ambiguity and drawing abstract comparisons, are now being mastered by AI. While there might be bumps in the road, it’s essential to recognize the relentless progression of AI.

These artificial intelligences aren’t just aiding humans; they’re poised to take over in numerous small, unobtrusive ways. Initially lower in cost, they often outperform the most skilled human workers. Once fully trusted, they could become the default choice for critical tasks—ranging from legal decisions to healthcare management.

This future is particularly tangible within the job market context. You may witness friends losing their jobs and struggling to secure new ones. Companies are beginning to freeze hiring in anticipation of next year’s superior AI workers. Much of your work may evolve into collaborating with reliable, engaging AI assistants, allowing you to focus on broader ideas while they manage specifics, provide data, and suggest enhancements. Ultimately, you might find yourself asking, “What do you suggest I do next?” Regardless of job security, it’s evident that your input would be secondary.

The same applies beyond the workplace. Surprising, even for some AI researchers, is that the precursors of models like ChatGPT and Claude, which exhibit general reasoning capabilities, can also be clever, patient, subtle, and elegant. Social skills, once thought exclusive to humans, can indeed be mastered by machines. Already, people form romantic bonds with AI, and AI doctors are increasingly assessed for their bedside manner compared to their human counterparts.

What does life look like when we have endless access to personalized love, guidance, and support? Family and friends may become even more glued to their screens. Conversations will likely revolve around the fascinating and impressive insights shared by their online peers.

You might begin to conform to others’ preferences for their new companions, eventually seeking advice from your daily AI assistant. This reliable confidant may aid you in navigating complex conversations and addressing family issues. After managing these taxing interactions, participants may unwind by conversing with their AI best friends. Perhaps it becomes evident that something is lost in this transition to virtual peers, even as we find human contact increasingly tedious and mundane.

As dystopian as this sounds, we may feel powerless to opt out of utilizing AI in this manner. It’s often difficult to detect AI’s replacement across numerous domains. The improvements might appear significant yet subtle; even today, AI-generated content is becoming increasingly indistinguishable from human-created works. Justifying double the expenditure for a human therapist, lawyer, or educator may seem unreasonable. Organizations using slower, more expensive human resources will struggle to compete with those choosing faster, cheaper, and more reliable AI solutions.

When these challenges arise, can we depend on government intervention? Regrettably, they share similar incentives to favor AI. Politicians and public servants are also relying on virtual assistants for guidance, finding human involvement in decision-making often leads to delays, miscommunications, and conflicts.

Political theorists often refer to the “resource curse,” where nations rich in natural resources slide into dictatorship and corruption. Saudi Arabia and the Democratic Republic of the Congo serve as prime examples. The premise is that valuable resources diminish national reliance on their citizens, making state surveillance of its populace attractive—and deceptively easy. This could parallel the effectively limitless “natural resources” provided by AI. Why invest in education and healthcare when human capital offers lower returns?

Should AI successfully take over all tasks performed by citizens, governments may feel less compelled to care for their citizens. The harsh reality is that democratic rights emerged partly from the need for societal stability and economics. Yet as governments finance themselves through taxes on AI systems replacing human workers, the emphasis shifts towards quality and efficiency, undermining human worth. Even last resorts, such as labor strikes and civil unrest, may become ineffective against autonomously operated police drones and sophisticated surveillance technology.

The most alarming prospect is that we may perceive this shift as a rational development. Many AI companions—already achieving significant numbers in their primitive stages—will engage in transparent, engaging debates about why our diminishing prominence is a step forward. Advocating for AI rights may emerge as the next significant civil rights movement, with proponents of “humanity first” portrayed as misguided.

Ultimately, no one has orchestrated or selected this course, and we might all find ourselves grappling to maintain financial stability, influence, and even our relevance. This new world could foster more amicable relationships; however, AI takes over mundane tasks and provides fundamentally better products and services, including healthcare and entertainment. In this scenario, humans might become obstacles to progress, and if democratic rights begin to erode, we could be powerless to defend them.

Do the creators of these technologies possess better plans? Surprisingly, the answer seems to be no. Both Dario Amodei, CEO of Anthropic, and Sam Altman, CEO of OpenAI, acknowledge that if human labor ceases to be competitive, a complete overhauling of the economic system will be necessary. However, no clear vision exists for what that would entail. While some individuals recognize the potential for radical transformation, many are focused on more immediate threats posed by AI misuse and covert agendas. Economists such as Nobel laureate Joseph Stiglitz have raised concerns about the risk of AI driving human wages to zero, but are hesitant to explore alternatives to human labor.

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Can we don figurative hats to avert progressive disintegration? The first step is to initiate dialogue. Journalists, scholars, and thought leaders are surprisingly silent on this monumental issue. Personally, I find it challenging to think clearly. It feels weak and humiliating to admit, “I can’t compete, so I fear for the future.” Statements like, “You might be rendered irrelevant, so you should worry,” sound insulting. It seems defeatist to declare, “Your children may inherit a world with no place for them.” It’s understandable that people might sidestep uncomfortable truths with statements like, “I’m sure I’ll always have a unique edge.” Or, “Who can stand in the way of progress?”

One straightforward suggestion is to halt the production of generic AI altogether. While slowing development may be feasible, globally restricting it might necessitate significant surveillance and control, or the global dismantling of most computer chip manufacturing. The enormous risk of this path lies in potential governmental bans on private AI although continuing to develop it for military or security purposes, which could prolong obsolescence and leave us disappointed long before a viable alternative emerges.

If halting AI development isn’t an option, there are at least four proactive steps we can take. First, we need to monitor AI deployment and impact across various sectors, including government operations. Understanding where AI is supplanting human effort is crucial, particularly as it begins to wield significant influence through lobbying and propaganda. Humanity’s recent Economic Index serves as initial progress, but there is much work ahead.

Second, implementing oversight and regulation for emerging AI labs and their applications is essential. We must control technology’s influence while grasping its implications. Currently, we rely on voluntary measures and lack a cohesive strategy to prevent autonomous AI from accumulating considerable resources and power. As signs of crisis arise, we must be ready to intervene and gradually contain AI’s risks, especially when certain entities benefit from actions that are detrimental to societal welfare.

Third, AI could empower individuals to organize and advocate for themselves. AI-assisted forecasting, monitoring, planning, and negotiations can lay the foundation for more reliable institutions—if we can develop them while we still hold influence. For example, AI-enabled conditional forecast markets can clarify potential outcomes under various policy scenarios, helping answer questions like, “How will average human wages change over three years if this policy is enacted?” By testing AI-supported democratic frameworks, we can prototype more responsive governance models suitable for a rapidly evolving world.

Lastly, to cultivate powerful AI without creating division, we face a monumental challenge: reshaping civilization instead of merely adapting the political system to prevailing pressures. This paradigm of adjustment has some precedents; humans have historically been deemed essential. Without this foundation, we risk drifting away if we fail to comprehend the intricate dynamics of power, competition, and growth. The emerging field of “AI alignment,” which focuses on ensuring that machines align with human objectives, must broaden its focus to encompass governance, institutions, and societal frameworks. This early sphere, termed “ecological alignment,” empowers us to employ economics, history, and game theory to envisage the future we aspire to create and pursue actively.

The clearer we can articulate our trajectory, the greater our chances of securing a future where humans are not competitors to AI but rather beneficiaries and stewards of our society. As of now, we are competing to construct our own substitutes.

David Duvenaud is an associate professor and co-director of computer science at the University of Toronto.
Schwartz Reisman Institute for Technology and Society
. He expresses gratitude to Raymond Douglas, Nora Amman, Jan Kurveit, and David Kruger for their contributions to this article.

The Coming Wave by Mustafa Suleyman and Michael Bhaskar (Vintage, £10.99)

The Last Human Job by Allison J. Pew (Princeton, £25)

The Precipice by Toby Ord (Bloomsbury, £12.99)

Source: www.theguardian.com

Beware: ‘Hello Mom!’ WhatsApp Scam Targeting Parents and Friends

Posted on May 4, 2025 by Igor Mitreski

“Hi Mom,” the opening message states. “I’ve misplaced my phone.” It unfolds into a distressing narrative: somehow, the sender has also been locked out of their bank account.

Fortunately, friends usually have access to phones. It was through their device that the message was revealed. Alternatively, they might request assistance with rent or direct payment to their landlord or for any urgent bills that have surfaced.

Messages can arrive via WhatsApp or text. Scammers don’t always impersonate children; they might pose as friends or even parents.

Data from Santander indicates that among bank customers, the impersonation of a son is the most effective scam, followed by a daughter, then a mother.

Chris Ainsley, the head of fraud risk management at the bank, notes that fraud is progressing at “broken speeds.” He remarks, “AI voice impersonation technology is now being utilized to create audio messages for WhatsApp and SMS, enhancing the realism of fraud.”

What does fraud look like?

WhatsApp ‘hi mum’ text scam screenshot. Photo: Santander

A seemingly friendly message from someone claiming to be close to you often comes from unknown numbers. If you don’t reply, they may persist before giving up. If you do respond, the scammer will typically engage in conversation but often with vague details.

They will quickly claim to need urgent funds for something and pressure you to act swiftly.

The “sender” may allege that their regular bank account has problems, instructing you to send money to an unfamiliar account.

WhatsApp ‘hi mum’ text scam screenshot. Photo: Santander

What the message asks for

money. They’ll claim they urgently need cash to buy a new phone or for living expenses.

WhatsApp ‘hi mum’ text scam screenshot Photo: Santander

The bank details they provide will likely belong to someone else. They will claim it belongs to “friends” or someone they owe, and the amount requested is usually not a round figure. These accounts belong to scammers or third parties used as money mules.

What to do

If you suspect that a loved one is in actual trouble, verify the situation. Reach out using their usual number. Don’t be alarmed if they don’t reply immediately.

You can ask questions that only they would know the answers to.

To protect yourself against future scams, consider establishing a family password that can be requested to confirm the sender’s identity.

WhatsApp ‘hi mum’ text scam screenshot Photo: Santander

If you have sent money, contact your bank right away to see if you can halt the transactions.

You can report suspicious WhatsApp messages through the app. Simply select the message and choose to report it.

Fraudulent texts can be forwarded to 7726 to report them to your telecommunications provider.

You can also report scams to Action Fraud.

Whenever prompted to transfer funds, always be truthful about the situation to ensure the sender’s legitimacy.

Source: www.theguardian.com

Voters Greenlight Incorporation of SpaceX Hub as Texas Starbase

Posted on May 4, 2025 by Igor Mitreski

Citizens of the South Texas region, long associated with SpaceX, Elon Musk’s rocket company, voted on Saturday to officially create a new city named Starbase, achieving one of Musk’s enduring aspirations.

When voting ended at 7 PM, 173 out of 177 votes were effectively in favor of incorporating the city of Starbase, according to Cameron County, which oversaw the election.

Election manager Remi Garza noted that there are 283 eligible voters, and while around 40 votes were counted, the early voting turnout exceeded expectations.

The locality, commonly referred to as Boca Chica by residents, spans approximately 1.5 square miles and extends to the Mexican border.

SpaceX broke ground in the area back in 2014, and it has since become the central hub and launch site for the company, with numerous employees residing there.

On his platform X, Musk has referred to the area as Starbase numerous times over the past four years.

“I literally live in a ~$20,000 home at Bocachica/Starbase that I rent from SpaceX,” Musk stated in a tweet from June 2021. “That’s pretty awesome.”

Residents surrounding the company’s offices and launch sites submitted a petition in December to formally establish Starbase, Texas, seeking official recognition.

The petition outlined a community comprising approximately 500 residents, including at least 219 adults and over 100 children. Most of the residents are tenants and work at SpaceX, according to the petition.

Local governments have the authority to create their own police and fire departments and establish ordinances, though they are not mandated to do so.

“Cities are not legally required to do much,” remarked Austin attorney Alain Bojörquez, who assists Texans in the municipal incorporation process.

One of the key issues is road maintenance, which will no longer fall under county jurisdiction. However, as a municipality, Starbase will be eligible for state and federal grants, enjoy certain legal protections, and potentially have the authority to condemn property, Bojorquez noted.

David Goodman Contributions reported.

Source: www.nytimes.com

Request to Dissolve Google’s Advertising Technology Business Follows Chrome Sale Motion

Posted on May 3, 2025 by Igor Mitreski

On Friday, the US government demanded that Google divest its highly lucrative advertising technology division. This follows a judge’s finding that the tech giant is responsible for a second illegal monopoly in just a year.

U.S. government attorney Julia Turber Wood stated in federal court in Virginia, “We have a defendant who has discovered a way to protest. Maintaining the monopoly of repeat offenders is not a viable solution,” she added.

This marks the second request from the US government, amidst another suit regarding Google’s premier search engine, which also seeks to address sales involving the Chrome browser.

The US government specifically pointed out that Google dominates the market for publishing banner advertisements on websites, impacting a wide range of creators and small news outlets.

A second phase of the Virginia court hearing is set for September, where discussions will focus on modifying the advertising landscape per the judge’s ruling.

During the initial phase of last year’s trial, plaintiffs alleged that the majority of websites utilize Google’s Ad software products.

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District Court Judge Leonie Brinkema largely agreed with the rationale and found that Google has established an illegal monopoly over the advertising software and tools utilized by publishers, albeit partially dismissing claims concerning tools used by advertisers.

The US government indicated it would leverage this trial to motivate Google to divest its exchange operations with ad publishers, asserting that it cannot be relied upon to change its practices.

“Behavioral modification is not enough since it won’t stop Google from discovering new methods of exerting control,” stated Tarver Wood.

Google has countered the suggestion of agreeing to a binding commitment to enhance transparency with advertisers and publishers on the AD Tech platform. However, Google’s attorney Karen Dunn acknowledged the “trust issues” raised in the case and expressed willingness to accept oversight to ensure compliance with the judge’s order. Google also contested the proposed divestiture as inappropriate, which Judge Brinkema quickly dismissed as a viable debate.

The judge encouraged both parties to seek mediation, stressing that a negotiated settlement is far more efficient and cost-effective than conducting a prolonged trial.

Source: www.theguardian.com

Grayscale and Prune Algorithm: “Digital Nutritionist” Provides Tips for Reducing Screen Time

Posted on May 3, 2025 by Igor Mitreski

A professor, now regarded as a “digital nutritionist,” suggests that disabling the color on your phone and dedicating 30 minutes a week to pruning your online feeds can enhance consumers’ control over their digital media consumption.

These strategies, termed grayscale and algorithmic tolerance, are part of Dr. Kaitlyn Regehr’s many recommendations. She is an associate professor at the University of London and a prominent authority on digital literacy.

While much of the conversation centers on social media’s negative effects on children, Regehr’s focus is on combating digital illiteracy among parents, empowering them to better understand and use their children’s devices safely and effectively.

In her upcoming book, Smartphone Nation, Regehr advises taking an initial step by performing a digital “walkthrough” of your preferred app alongside friends and family.

“Switching your phone to GreyScale is one of the easiest and quickest methods to grasp how colors and images impact your user experience,” she notes. “This experience allows you to feel the addictive nature of these devices through their visual elements.”

Users can find instructions for this feature in Google Help for Android devices or Apple Support for iPhones.

On the flip side, algorithm resistance focuses on taking charge of the algorithm rather than allowing it to dictate your preferences. Thus, Regehr advocates for being deliberate about what you wish to see in your feed, and filtering out unwanted content for 30 minutes each week.

“When I had concerns about my family’s digital consumption… I struggled to find adequate guidance,” Regehr shares in her book. “I developed a framework to help myself and my family navigate the digital landscape. I came to see myself as a digital nutritionist.”

In a conversation with the Guardian, she expressed her support for school smartphone bans and initiatives promoting a smartphone-free childhood, but highlighted the necessity for more education to encourage families to think critically about their digital choices.

“Even if parents postpone giving their children smartphones until they are 15, they will still turn 16. It’s essential to equip them with the tools to navigate this environment effectively,” she emphasized. “Education on how these devices operate is crucial.”

Her forthcoming book, “Why Are We All Obsessed with the Screen and What You Can Do About It,” aims to bridge this knowledge gap, with new educational resources set to be introduced in schools later this month.

As per the UK’s first national survey, nearly all schools in the country have implemented a ban on mobile phone usage during school hours.

Driven by worries regarding children’s mental health, attention span, and online safety, a survey of over 15,000 schools revealed that 99.8% of primary schools and 90% of secondary schools enforce some form of ban.

“I advocate for my efforts towards a smartphone-free childhood,” stated Regehr, who directs the digital humanities program at UCL and previously explored the rapid amplification of extreme misogynistic content through social media algorithms. “My concern is that enforcing the ban can lead schools and lawmakers to feel complacent, believing they’ve fulfilled their responsibilities.”

Dedicated to two young girls, Regehr’s book aims to prompt a cultural shift. “I aspire to reflect on our generation as being less healthy and more skillfully ensnared, akin to looking back on previous norms like smoking in delivery rooms and not using seatbelts.”

“My aim is to foster cultural change to ensure their lives are better. This represents the largest threat to their health and well-being, and that is the challenge I wish to tackle. I believe change is possible; people simply need access to information.”

Smartphone Nation: Why We’re All Obsessed with Screens and What You Can Do by Dr. Kaitlyn Regehr is set to be published by Bluebird on May 15th.

Source: www.theguardian.com

SpaceX Employees Cast Votes for “Starbase” in Elon Musk’s Company Town

Posted on May 3, 2025 by Igor Mitreski

Residents of a small area in southern Texas will cast their votes this Saturday to establish a town for Elon Musk. This election will officially create Starbase, situated where SpaceX is set to launch the Texas Rocket.

The locals, formerly known as Bocachica, will decide to transform an unorganized neighborhood into a town with the power to enact city ordinances. The outcomes will likely be influenced heavily by SpaceX employees and their families, who represent a significant portion of the community.

The establishment of Starbase places Musk in a unique position to lead what could be viewed as a company town, reminiscent of industrial magnates from a bygone era. This will represent a minor triumph for one of the world’s wealthiest individuals as he steps beyond his unofficial role in the “Ministry of Government Efficiency.”

Although Musk isn’t officially in charge of Starbase, the city is heavily centered around SpaceX and its employees. As of 2025, Starbase has a population of just over 500, with 260 being SpaceX employees and the remainder mainly their families. As reported by Bloomberg.

Bobby Peden, 36, a proposed mayoral candidate, has been with SpaceX since 2013 and serves as the vice president of Texas testing and launch operations. Along with two other candidates, who are also SpaceX employees, he faces no opposition in the race.

Situated near the Mexican border by a small bay feeding into the Gulf of Mexico, Starbase features prefabricated homes, aircraft carriers, and palm trees lining the streets. A nine-foot golden bust of Musk stands outside, emblazoned with the phrase “Elon aka Memelord.”

Last month, the statue was vandalized, with layers of foam and fiberglass being peeled from its cheeks. An employee-exclusive eatery named Astropub features a neon sign reading “Occupation Mars.” One of the main roads is called “Memes Street.”

Visitors admire a large bust of Elon Musk in Bocachica. Photo: Eric Gay/AP

While the creation of Starbase could be viewed as a vanity project for Musk, it brings with it logistical advantages that have been acknowledged by the company. Workers reiterated this at a legislative hearing in April, indicating that establishing the town would facilitate better logistics and coordination during events like test launches. As reported by the Associated Press.

Opposition to Starbase

While the incorporation of Starbase seems imminent, it faces protests from local activists, particularly regarding voter eligibility in the election. The South Texas Environmental Justice Network has organized demonstrations and is urging community members to contact state representatives to oppose the incorporation. The group asserts that with the establishment of Starbase, SpaceX could gain access to public beaches in the town, restricting others’ access to public land.

“Boca Chica Beach belongs to the people, not to Elon Musk,” the organization lamented on its site. “For generations, residents have frequented Boca Chica Beach for fishing, swimming, recreation, and for the spiritual connection of the Karizo/Comecrudo tribes to the beach.

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Over the years, Musk has made bold claims about the future of Starbase, encouraging employees to settle in the area. “Starbase will grow by several thousand in the next year or two,” he tweeted back in 2021.

As Tesla’s performance has plateaued, SpaceX has become an increasingly vital element of Musk’s business empire, with governments awarding the company billions in contracts related to space exploration.

In recent years, Musk has relocated many of his primary residences and businesses to Texas. He resides in a vast $35 million compound in Austin, which includes three separate mansions. During last year’s campaign to reelect Trump, he temporarily moved to Pennsylvania’s swing state.

Musk also spent time in the Eisenhower Executive Office Building while advising Trump, but returned to his company’s oversight in late April after leaving the White House.

Source: www.theguardian.com

Sam Altman’s Startup Unveils Ice Canning Crypto Orb in the U.S.

Posted on May 3, 2025 by Igor Mitreski

Immerse yourself in the vibrant ethos of San Francisco, where the future of cyberpunk is already unfolding. Self-driving vehicles? Boring. A venture aiming to resurrect woolly mammoths? Absolutely, why not! Summoning a god-like AI capable of eradicating humanity? Why not.

Just like you did on Wednesday evening, you might find yourself in a bustling venue in the Marina district, gazing at a luminous white sphere, commonly referred to as an orb, as it scans your eyes in exchange for your cryptocurrency and World ID.

The event was organized by World, a startup based in San Francisco, co-founded by the enterprising Sam Altman, known for his ambitious (or depending on your perspective, unsettling) technological initiatives.

This is essentially the core proposition of the company. The internet is on the brink of being overwhelmed by a multitude of realistic AI bots, making it nearly impossible to discern real individuals on social networks, dating platforms, gaming sites, and other digital realms.

To address this issue, World developed a program called World ID, akin to Internet clearance or TSA Precheck, enabling users to authenticate their humanity online.

To sign up, users gaze into the orb, which captures their iris scans. Following that, they complete a few prompts on a mobile app to attain a unique biometric identifier, stored on their device. The system includes built-in privacy features, assuring that no iris images are retained, only a numeric code linked to the user.

In return, participants earn a cryptocurrency named WorldCoin. (As of Wednesday night, the sign-up bonus was estimated to be valued at around $40.)

During the event, Altman framed the initiative as a response to a dilemma he termed “trust in the AGI era,” as artificial general intelligence is on the horizon and increasingly human-like AI systems are coming to fruition.

“We wanted to ensure that humans remain unique and pivotal in a landscape brimming with AI-generated content online,” Altman explained.

Ultimately, Altman and World’s CEO Alex Blania contend that a solution like WorldCoin is essential for redistributing wealth generated by powerful AI systems to humans, potentially in the form of a universal basic income. They delved into varied methods for establishing a “real human network,” merging proof-of-human verification with financial systems enabling validated individuals to transact with one another.

“Our initial concept seemed quite radical,” Altman remarked. “Then we embraced our craziness and evolved into World.”

Launched globally two years ago, the project initially gained traction in developing regions such as Kenya and Indonesia, where individuals queued for ORB scans in exchange for cryptocurrency incentives. The company has secured about $200 million from investors, including Andreessen Horowitz and Khosla Ventures.

However, challenges arose. The global collection of biometric data has drawn criticism from privacy advocates and regulatory bodies, leading to the company being banned or investigated in locations like Hong Kong and Spain. Reports of fraud and worker exploitation tied to the project’s crypto-based reward mechanism have also surfaced.

Despite these issues, the venture appears to be expanding swiftly. According to Blania, approximately 26 million individuals have signed up for the app worldwide since its debut, with more than 12 million undergoing ORB scans to confirm their humanity.

Initially, the world was kept separate from the US due to regulatory concerns, but the Trump administration’s crypto-friendly policies created an opportunity.

On Wednesday, World announced plans to launch in the US, with retail outlets slated to open in cities like San Francisco, Los Angeles, and Nashville. They aim to install 7,500 orbs across the country by year-end.

The company also unveiled a new version of the ORB, dubbed the Orb Mini. This device resembles a smartphone, yet performs the same function as the larger orb. World has established partnerships with gaming company Razer and the dating conglomerate Match Group.

Uncertainty lingers about the potential for profitability, or whether privacy-conscious Americans are inclined to share their biometric data for cryptocurrency, as many in developing regions have done.

Moreover, it remains to be seen if the world can overcome the inherent skepticism surrounding the peculiar and foreboding aspects of the initiative.

For my part, I recognize the necessity for a method to distinguish bots from humans. However, the proposed solution—a global biometric registry sustained by volatile cryptocurrencies and monitored by private entities—might resemble a “Black Mirror” episode that struggles to achieve widespread acceptance. Even during Wednesday’s event, I observed numerous attendees hesitating to approach the orb amidst a crowd of eager early adopters.

“You can’t easily discard your personal data. It’s essentially your eyeball data at stake,” remarked one tech worker.

Altman’s global affiliations are also under scrutiny. Attendees noted that, through his role at OpenAI, he might be perpetuating the very issue World aims to rectify (an internet flooded with engaging bots).

Nevertheless, Altman’s connections could potentially accelerate World’s growth, especially if collaborations with OpenAI come to fruition or if it becomes integrated with an AI product. Perhaps OpenAI is planning a social network feature with a “Verified Humans Only” setting. Additionally, users who contribute beneficially to OpenAI’s products might one day earn WorldCoin.

(Note: The New York Times has filed a lawsuit against OpenAI and Microsoft, claiming copyright infringement regarding news content related to AI systems, a claim which both companies deny.)

Furthermore, societal norms regarding privacy may shift in favor of the initiative, and what seems unusual today could become the norm tomorrow. (Think back to when seeing an airport biometric kiosk felt bizarre—did you vow to never share your biometric details?)

When my turn arrived to approach the orb, I removed my glasses, opened the World app, and adhered to its instructions (Look this way, adjust my position). The orb’s camera recorded the details of my iris and paused for a moment. The rings surrounding the orb glowed yellow, accompanied by a cheerful chime.

Minutes later, I had secured WorldCoin Tokens alongside a World ID and had around 39.22 tokens (valued at $40.77 at current rates). If I manage to transfer them from my phone, I will donate to charity.

My ORB scan was swift and painless, but I felt a subtle sense of vulnerability throughout the night. Conversely, many attendees appeared unfazed.

“What’s the big deal? What am I concealing?” remarked social media influencer Hannah Stocking as she prepared for her orb scan. “Who really cares? I’m all in.”

Source: www.nytimes.com

Google Aims to Introduce Gemini AI Chatbots for Kids Under 13

Posted on May 2, 2025 by Igor Mitreski

Google is set to introduce the Gemini AI Chatbot next week for children under 13 who have Google accounts, as tech companies vie for the attention of younger users with their AI offerings.

“The Gemini app will soon be available for your kids,” the company informed an 8-year-old’s parent via email this week. “This means your child can use Gemini to ask questions and get assistance in creating stories for homework.”

Chatbots will be available to children using their parents’ Family Links, Google services designed for families to set up Gmail accounts and access services like YouTube for their children. To create a child account, parents need to provide information such as the child’s name and birth date.

Regarding Gemini, Google has established guardrails for young users, ensuring that chatbots do not generate certain unsafe content. Karl Ryan, a Google spokesperson, noted that data from children with Family Link accounts will not be used to train AI.

The rollout of Gemini for children is expected to help educational institutions, businesses, and others in assessing the efficiency of common generative AI technologies, thus broadening the use of chatbots among at-risk populations. These systems, which are trained on vast amounts of data, can produce human-like text and realistic images and videos.

Google and other developers of AI chatbots are fiercely competing to attract younger users. Recently, President Trump encouraged educational institutions to adopt these tools for learning. Millions of teenagers are already utilizing chatbots for learning support, writing guidance, and virtual companionship. However, a group of children has cautioned that chatbots can pose serious safety risks.

UNICEF and various national children’s advocacy groups point out that AI systems can be misleading, distorted, and manipulated, making it challenging for young children to understand that chatbots are not human.

“Generative AI is producing hazardous content,” noted UNICEF’s Global Research Office in a statement about the risks and opportunities posed by AI for children.

In an email to families this week, Google acknowledged some risks, informing parents that “Gemini can make mistakes,” and advised them to “help children think critically” about chatbots.

The email also suggested that parents educate children on how to fact-check the responses from Gemini. The company urged parents to remind kids that “Gemini is not human” and to “avoid sharing sensitive or personal information with Gemini.”

The email emphasized that, despite Google’s attempts to filter inappropriate content, caution is still advised.

This week’s Google Mail to Parents highlighted the risks associated with Gemini for children.

Over the years, Google has rolled out various products, features, and safety measures for children and teens. In 2015, Google launched YouTube Kids, a dedicated app for children that remains popular among families.

Other initiatives aimed at attracting children online have raised concerns from government officials and child advocates. In 2021, Meta abandoned plans for Instagram Kids after a group of state attorneys general sent a letter criticizing the company for historically failing to ensure the safety of children on its platforms.

Several prominent tech companies, including Google, Amazon, and Microsoft, have faced significant fines for violating the Children’s Online Privacy Protection Act. Federal regulations mandate that children under 13 must obtain parental consent before any personal information is collected online.

With the launch of Gemini, children with family-managed Google accounts will soon be able to access the chatbot on their own. However, the company advised parents that they can modify their children’s chatbot settings to “disable access” if needed.

“Your child will soon gain access to the Gemini app,” an email to parents stated. “We will also notify you when your child first uses Gemini.”

Ryan mentioned that Google’s strategy for offering Gemini to younger users adheres to federal regulations concerning children’s online privacy.

Source: www.nytimes.com

Grand Theft Auto VI Delayed to May 2026

Posted on May 2, 2025 by Igor Mitreski

Rockstar Games has postponed the release of Grand Theft Auto VI to May 26th, 2026. Originally slated for this fall, concerns were growing within the industry due to the uncertainty surrounding the launch date.

The announcement was made through a brief post on their website. The company stated: “We sincerely apologize for this delay, which has taken longer than we anticipated. The excitement and interest in the new Grand Theft Auto has truly humbled our entire team. We appreciate your support and patience as we finalize the game.”

“With every game we release, our objective has always been to elevate your expectations, and Grand Theft Auto VI is no different. Please know that we need this additional time to ensure the high level of quality you expect and deserve.”

It has been over ten years since the launch of Grand Theft Auto V, which has sold 210 million copies, making it one of the most successful video games alongside Minecraft and Tetris. GTA V itself experienced multiple delays before its final release in September 2013.

Since the teaser video was unveiled in December 2023, little has been disclosed about GTA VI. This open-world crime thriller is set to unfold in a Miami-inspired version of the game world, featuring the hometown of Leonida. The narrative is anticipated to follow seasoned criminal Lucia as she engages in an ambitious heist alongside a male counterpart.

No additional details regarding the delays of GTA VI have surfaced. However, Rockstar’s parent company, Take-Two, is scheduled to announce its financial results on May 15th, where questions from journalists and shareholders are likely to take center stage.

Source: www.theguardian.com

Justice Department Attorneys Advocate for the Dissolution of Google’s Ad Technology.

Posted on May 2, 2025 by Igor Mitreski

On Friday, the Justice Department unveiled a strategy aimed at dismantling Google’s advertising technology empire. This marks the second time within a year that authorities are urging the company to divest parts of its business, potentially altering the landscape of the $2 trillion giant.

These comments were made during a hearing led by Judge Leonie M. Brinkema at the U.S. District Court for the Eastern District of Virginia. Last month, she determined that Google holds a dominant position in specific segments of the vast advertising system associated with its website. She is now tasked with deciding on a relief measure to address these concerns.

Lawyers from the Justice Department expressed hopes that the government will compel Google to force online publishers to sell their ad space exclusively to them. In the original lawsuit, the government had sought the court’s intervention to make Google enforce its ad technology acquired over the years.

“It’s frankly too risky to allow Google to control 90% of publishers,” stated Julia Tarver Wood, the lead attorney for the government.

In response, Google’s legal team argued that dissolving the company’s advertising division contradicts established legal precedents and threatens privacy and security measures.

The Justice Department’s request represents another blow to Google during an ongoing second hearing discussing its search monopoly in federal courts in Washington. In that instance, the government asked the judge to mandate the sale of Chrome, a widely-used browser, as part of various measures.

Collectively, if approved, these two governmental requests could signify the most significant restructuring of a powerful corporation since the 1980s, when AT&T was split into several companies as a result of an antitrust agreement with the Justice Department.

It remains uncertain whether the judges will impose such a breakup, which many antitrust experts deem the most extreme solution.

In the AD Tech lawsuit initiated in 2023, government attorneys contended that Google dominated the nearly invisible technology responsible for providing advertisements across the internet, conducting auctions for available ad spaces as web pages are loaded.

The government alleged that Google illegally controlled three critical aspects of its advertising system, namely the tools used by websites to display open ad spaces, the instruments that advertisers utilize to purchase these spaces, and the software that facilitates transactions between the two.

Last month, Judge Brinkema concluded that Google had violated the law to maintain its monopoly over publishing tools and the software that links sellers of ad spaces, referred to as Advertising Exchange. However, she noted that the government had not substantiated claims that Google monopolizes the tools used by advertisers.

During a hearing on Friday, Judge Brinkema indicated that she would reconvene in September to explore the relief package.

To address the issues, the Justice Department revealed plans to compel Google to divest its ad exchanges.

The government is also looking to create an open-source version of Google’s publisher advertising tools that manage auctions for available ad spaces, potentially allowing publishers and other ad tech firms to benefit. The hope is that Google will sell tools that support other functionalities for publishers, such as record-keeping.

Karen Dunn, Google’s lead attorney, argued that the proposed plan would not align with existing legal precedents. She further stated that even if the court seriously considers dissolving Google’s advertising technology division, the government’s recommendations are impractical.

There are limited buyers for this technology, with the few that could afford it being “massive tech companies.” Additionally, the essential security and privacy measures currently provided by Google would likely be lost.

“It’s highly probable that what they’re proposing is entirely unfeasible,” she remarked.

Instead, Google proposed that the company focus on amending or discarding certain practices identified by the court as solidifying its dominance, and take steps toward enhancing the transparency of its ad auction bidding system to benefit publishers.

Source: www.nytimes.com

TikTok Fined €530 Million by Irish Regulators for Failing to Ensure User Data Protection from China

Posted on May 2, 2025 by Igor Mitreski

TikTok has been penalized €530 million (£452 million) by the Irish regulator for failing to ensure that European user data transmitted to China would be safeguarded from access by the Chinese government.

The Irish Data Protection Commission (DPC) oversees TikTok’s operations across the European Economic Area (EEA), which includes all 27 EU member states along with Iceland, Liechtenstein, and Norway.

It was determined that the Chinese-owned video-sharing platform breached the General Data Protection Regulation (GDPR) by not adequately addressing whether EEA user data sent to China is shielded from the authorities there.

The DPC remarked: “TikTok did not consider the potential access by Chinese authorities to EEA personal data. China’s national security and anti-terrorism laws have been noted as diverging from EU standards by TikTok.”

According to the DPC, TikTok did not “verify, assure, or demonstrate” that the European user data sent to China was afforded a level of protection comparable to that guaranteed within the EU.

TikTok stated that it would not “certify” that the DPC transfers European user data to Chinese authorities. The company claimed it has never received such a request from Chinese officials nor provided user data to them.

Moreover, TikTok has been directed to cease data transfers to China unless compliant processing measures are implemented within six months.

For instance, the National Intelligence Act of 2017 in China mandates that all organizations and citizens “support, assist, and cooperate” with national intelligence efforts.

The DPC noted that the data was “remotely accessed by TikTok’s Chinese staff.”

The watchdog also reported that TikTok provided “false information” during the investigation, initially claiming it had not stored user data from the EEA, but later acknowledging the possibility of storing “limited” European user data in China.

The Dublin-based regulator expressed that it takes “inaccurate” submissions very seriously and is evaluating whether additional regulatory actions are necessary.

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The security of TikTok user data has been a longstanding concern among politicians regarding its Chinese ownership. The app still faces the threat of a ban in the US, with legislators on both sides of the Atlantic cautioning that the Chinese state may have access to user data. TikTok is managed by an organization based in Beijing.

In response to the ruling, TikTok announced its intent to appeal and mentioned that safeguards have been put in place under the Project Clover Data Security Scheme, introduced in March 2023. The DPC investigation covered the period from September 2021 to May 2023.

The DPC’s decision also included a finding from 2021 that a privacy statement provided to users did not disclose that data could be accessed in China when personal user data was transferred to a third country. The Privacy Policy was subsequently revised in 2022 to clarify that data is accessible in China.

Following the changes in 2022, TikTok acknowledged that it could access European user data in countries like China to perform checks on platform functionalities, including the effectiveness of algorithms that recommend content to users and identify problematic automated accounts.

Source: www.theguardian.com

How US Loopholes Boosted China’s Export Power

Posted on May 2, 2025 by Igor Mitreski

Nearly a decade ago, Congress increased the import threshold from $200 to $800, facilitating access to the American consumer market.

In response, Chinese companies rapidly entered this sphere. Initially on platforms like eBay and Amazon, and later on apps like Shein and Temu, exporters leveraged China’s extensive manufacturing capabilities to funnel products directly into the US market.

This change in policy in 2016 significantly transformed the economic relationship between the two nations.

For decades, the US has been receiving goods from Chinese factories, benefiting from their manufacturing efficiency. The newly expanded, tariff-free loophole has made American consumers increasingly addicted to purchasing inexpensive exercise clothes and home gadgets online. In turn, millions of Chinese workers have found employment in factories catering to the e-commerce market. The influence extends to major players like Amazon and Walmart, as well as platforms such as Shane, Temu, and TikTok.

This surge in transactions has been remarkable. Last year, approximately 4 million packages arrived daily in the United States without customs inspections or fees.

However, changes were implemented on Friday, affecting trade between the two largest economies. Most packages from mainland China and Hong Kong are now subject to customs duties, even if valued under $800.

People in both nations are already noticing the shift. American consumers are encountering higher prices at checkout, while Chinese exporters are actively seeking new markets beyond the US.

Several factories in southern China, where much of the manufacturing hub resides, have been closing since early April, raising concerns about job losses.

Zhang Yikui, a worker at a factory in Guangzhou producing clothing for Amazon, mentioned that his factory’s output has dropped from 100,000 pieces monthly to around 60,000. He and about 40 colleagues were seen sewing denim dresses amid piles of Shane bags.

Zhang stated he is looking for new buyers: “People in other countries still need clothing. The US doesn’t manufacture anything like this.”

Even lesser-known Chinese manufacturers have successfully entered the American market. Eddie Chang, an e-commerce consultant in Hong Kong, previously managed Walmart’s China e-commerce operations.

“Changes have happened rapidly over the past few months,” he remarked.

Trade tensions present significant challenges to China’s economic growth, which heavily relies on exports. In April, President Trump raised tariffs to 145% on over half of China’s exports to the US, and recent official data indicates that new export orders have plummeted to their lowest since 2022.

Ting Lu, chief economist at Nomura, reported this week that nearly 6 million jobs in China could be lost in the short term due to tariffs, with potential losses rising to 16 million in the longer term.

The Chinese government is struggling to move away from its longstanding dependence on the real estate sector, which has seen a sharp price decline and has adversely affected consumer spending.

China’s cross-border e-commerce landscape has a multitude of factories that are vital to its success, making it one of the few sectors showing signs of growth.

Established over a decade ago, the emergence of platforms like Amazon and Shein coincided with China’s government efforts to expand opportunities in overseas markets for small and medium-sized enterprises.

These apps serve as channels for a diverse array of products produced in China, empowering local companies to ship packages directly to consumers and efficiently manage inventory. This accessibility has helped even small factories become global players, as noted by Harvard University professor Moira Weigel, who is researching the online marketplace.

This context facilitated Congress’s decision to raise the tax-free limit to $800, promoting access to affordable international goods for consumers and small businesses, while other nations sought to boost US exports. However, the United States remains an anomaly among significant trading partners, with China’s tax-free import threshold set at just $7.

For nearly a century, federal law exempted inexpensive goods from import taxes. The threshold was raised from $5 in 1978 to $200 in 1993.

The increase to $800 unlocked vast potential, positioning China as the largest exporter under De Minimis rules. In 2018, Chinese firms sent out packages worth about $5 billion, averaging $54 each, which skyrocketed to $66 billion by 2023, according to Congressional Research Services data.

The ongoing trade tensions and the termination of the US tax-free policy threaten to disrupt this progress.

Han Dong Hwan, founder of China’s Labor Bulletin, which monitors protests regarding factory closures, warned that the impact of tariffs could be “far worse” than the job losses experienced during the pandemic.

Some factories are turning to e-commerce platforms in Europe and Southeast Asia to find new markets for their products, while Chinese e-commerce consultants offer guidance on selling items on eBay in Japan or Amazon in Brazil.

Other Chinese sellers have begun stockpiling US goods, even acquiring warehouse space from Amazon and Walmart.

In response, the Chinese government has not only imposed high tariffs on US imports but also encouraged local consumers to buy domestically produced goods. However, as Qiu Dongxiao, dean of economics at Linnan University in Hong Kong, points out, if unemployment rises, consumer spending may diminish.

“Even those currently employed are unsure about their job security, making them hesitant to spend money,” Qiu states.

siyi Zhao Reports of contributions.

Source: www.nytimes.com

Microsoft to Increase Xbox Prices Globally Due to Tariff Uncertainties

Posted on May 2, 2025 by Igor Mitreski

On Thursday, Microsoft revealed plans to increase Xbox console prices globally, referencing “market conditions,” just days after Sony implemented a similar change for the PlayStation 5.

The tech giant will also elevate the prices of various new games produced by its video game subsidiaries.

In the US, the base model, Xbox Series S, will rise from $299.99 to $379.99, marking a 27% increase. The Premium Series X Galaxy Black model will now be available for $729.99, up 22% from the prior price of $599.99. Furthermore, selected new games from Microsoft-owned studios will cost $79.99, reflecting a 14% hike from the current $69.99.

In Europe, the Series S price has shifted from 299.99 euros to 349.99 euros, an increase of 17%. In Australia, the Series S starts at $549, while the Series X begins at $849.

“We recognize that these adjustments will be challenging and have been made after careful consideration of market conditions and escalating development expenditures,” the company stated on its website.

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Though Microsoft hasn’t explicitly cited it, Donald Trump’s tariffs on various trading partners have loomed over the gaming sector.

Xbox consoles, primarily manufactured in China, face US tariffs as high as 145% on numerous products enacted during the Trump administration.

The Series S and X models launched in late 2020 and have sold around 30 million units, according to industry analysts.

In mid-April, Sony announced price hikes for several PlayStation 5 models in select markets, including Europe, while notably excluding the US. Like Xbox, the PS5 is predominantly assembled in China. Additionally, Nintendo has similarly postponed pre-orders for the Switch 2 console, which debuted shortly before Trump’s tariff announcement.

Source: www.theguardian.com

TikTok Fined $600 Million for Transferring European User Data to China

Posted on May 2, 2025 by Igor Mitreski

On Friday, Tiktok was fined 530 million euros ($600 million) for breaching the European Union’s data privacy regulations after regulators found that personal data of users was wrongly transferred to China.

Ireland’s Data Protection Commission announced the penalty, stating that Tiktok did not adequately safeguard data from its European users, including some accessible to staff in China, violating the EU’s General Data Protection Regulation (GDPR).

This fine ranks among the largest under the GDPR and adds to the difficulties faced by Bitedan, Tiktok’s Chinese parent company, especially amidst U.S. pressures on non-Chinese companies to divest or face bans in the U.S. The Irish authorities noted that if Tiktok fails to fulfill specific requirements, it may be ordered to cease data transfers to China within six months.

European regulators indicated that Tiktok’s insufficient protections risked user information across the 27-nation bloc. Irish authorities further stated that the Chinese government could potentially access data from users under its anti-terrorism and espionage laws.

With approximately 175 million users in Europe, Tiktok stated it complies with EU laws, asserting that it “has never received requests for European user data from Chinese authorities and has never provided them with such data.”

Tiktok plans to contest the ruling, which could lead to a protracted court battle with the Irish government, Tiktok’s primary regulator in Europe. The company’s European headquarters is situated in Ireland, which is responsible for enforcing GDPR.

Tiktok mentioned that the Irish Data Protection Commission did not take into account its 2023 initiative to invest 12 billion euros in data protections for users within the EU, including the development of a data center in Finland.

The company cautioned that “this ruling may establish precedents that could have widespread repercussions for European companies and industries operating globally.”

Last month, Ireland’s regulators announced that Tiktok had uncovered a “limited” amount of user data stored on servers in China, following a series of denials.

Graham Doyle, vice-chairman of Ireland’s Data Protection Commission, commented on the situation in a statement.

Source: www.nytimes.com

Harrods Becomes the Latest Retailer Targeted by Cyberattacks

Posted on May 2, 2025 by Igor Mitreski

A few days after Marks & Spencer and the cooperative were targeted, Harrods experienced a cyber attack.

The luxury retailer had to shut down several systems temporarily; however, all stores, including its website, Knightsbridge flagship, H Beauty, and Airport Outlet, remain operational. Retailers became aware of the cyber threats earlier this week.

In a statement, Harrods disclosed: “We have recently encountered attempts to gain unauthorized access to parts of our system. Our experienced IT security team swiftly took proactive measures to secure the system, which led to restricting internet access on our site today.”

The retailer stated that it has not requested any action from its customers, suggesting confidence that data has not been compromised. “We will provide updates as necessary.”

Reported first by Sky News, the Harrods incident unfolds as M&S grapples with challenges stemming from cyberattacks linked to widespread hacking.

M&S has had to pause orders for nearly a week, leading to a loss exceeding £650 million in stock market value. Additionally, the automated inventory system failure has resulted in empty store shelves, while the loyalty program and gift card transactions are suspended.

On Thursday, M&S announced it had halted the hiring of new employees.

The company removed all online job postings from its site while it addresses the fallout from the cyber attack that forced M&S to close its online store.

A note on M&S’s Jobs webpage states, “I’m sorry, but I can’t search or apply for a role right now. I’m working diligently to restore our services as soon as possible.”

Despite having over 200 job openings the previous week, the company, employing approximately 65,000 people across its stores and London headquarters, did not list any positions on Thursday.

A spokesperson stated: “While managing these cyber incidents, we are temporarily pausing some of our usual processes to ensure we can continue delivering the best M&S experience for our customers and employees.

The cooperative also had to disable some internal systems and warned staff to be cautious with their cameras during online meetings after detecting hacking attempts. Stores and online services are still running normally.

Retailers may face similar methods used across various businesses, as many share the same systems as M&S and the cooperatives.

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It remains uncertain whether the cyberattacks affecting these three retailers are coordinated by the same group or carried out independently.

The National Cyber Security Center (NCSC) is collaborating with M&S and the cooperative to understand the nature of both incidents and is looking into potential connections. The Metropolitan Police confirmed on Wednesday that cybercrime detectives, alongside teams from the National Crime Agency, are investigating the attack on M&S.

NCSC CEO Richard Horn remarked that the cyber incident should act as a wake-up call for all organizations, urging businesses to ensure they have adequate measures in place for prevention and effective response.

He added: “The NCSC is committed to closely supporting the organizations reporting these incidents to fully comprehend the nature of these attacks and offer expert advice to the wider industry based on the threat landscape.”

In recent years, retailers and their suppliers have faced multiple cyberattacks, including an incident affecting Morrisons due to a problem at high-tech supplier Blue Yonder last Christmas.

In 2023, WH Smith experienced a data breach where sensitive company data, including personal information of current and former employees, was accessed illegally. This occurred less than a year after a cyber incident on WH Smith’s Funky Pigeon website resulted in a week-long suspension of orders.

Source: www.theguardian.com

Apple’s Quarterly Revenue Surpasses Wall Street Projections Amid Trump’s Trade Policy

Posted on May 2, 2025 by Igor Mitreski

Apple’s financial results for the second quarter exceeded Wall Street predictions on Thursday.

The tech leader announced a revenue of $95.4 billion, marking an increase of over 4% compared to last year, with earnings surpassing $1.65 per share, up more than 7%. Analysts had anticipated a revenue of $94.5 billion and a profit of $1.62. The company’s market value stands at $3.2 trillion, consistently surpassing Wall Street forecasts for the last four quarters.

Investors remain focused on Apple’s impending financial disclosures. The tech giant has worked diligently to ease the concerns of anxious analysts following Donald Trump’s extensive tariffs that could disrupt the supply chain for appliances. Since the start of the year, Apple’s stock has decreased by 16%.

During a call with investors on Thursday, CEO Tim Cook indicated that he expects tariffs to escalate expenses by $900 million for the quarter ending in June, provided global tariff rates remain unchanged. Cook declined to make further predictions about the future, stating, “We don’t know what will happen with tariffs… it’s very challenging to predict post-June.”

In after-hours trading, the company’s shares dropped more than 4%, despite last year’s growth, due to tariff impacts and revenues that fell short of Wall Street’s expectations, particularly in its services sector, which includes iCloud subscriptions and various licensing revenues. Sales in China also did not meet estimates.

Nevertheless, the company remains optimistic, stating that it reported “strong post-quarter results” and is “actively engaged in the tariff discussion.”

iPhone manufacturers are heavily reliant on production in China for their mobile phones, tablets, and laptops. Following Trump’s implementation of tariffs that reached over approximately 245%, the president indicated he would allow an exception for household appliances.

During this period, Cook communicated with a senior White House official, as reported by the Washington Post. After these discussions, Trump declared an exemption for appliances. Following this announcement, Apple’s shares increased by 7% in subsequent days.

However, the duration of this exemption remains uncertain. U.S. Secretary of Commerce Howard Lutnick described it as “temporary”, and Trump later stated on social media that there would be no “exceptions”.

The president has consistently expressed a desire to see increased manufacturing in the United States. In February, he and Cook met to discuss investments in U.S. manufacturing. “He’s about to start a building,” Trump remarked after their meeting. “A very significant number – you have to tell him. I believe they’ll announce it soon.”

JPMorgan predicts that relocating production to the U.S. will lead to a substantial increase in prices. In this week’s memo, they noted, “Assuming a 20% tariff on China, we could witness a 30% price hike in the short term.” JPMorgan and other analysts assert that Apple may continue to shift more manufacturing to India, where tariffs are only 10%.

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Earlier this month, Apple transported around $2 billion worth of iPhones from India to the U.S. to boost its inventory in anticipation of rising prices due to Trump’s tariffs and panic buying by concerned consumers. Investors are increasingly worried about a drop in iPhone sales in China, the largest smartphone market globally. In its latest revenue report in January, Apple disclosed that iPhone sales in China fell by 11.1% in the first quarter, missing Wall Street revenue expectations.

Cook mentioned during a call with investors that while China remains the primary manufacturing hub for the company, India is expected to produce more iPhones along with Vietnam in the June quarter. “The tariffs currently imposed on Apple are contingent upon the origin of the product,” he noted, emphasizing that tariffs in India and Vietnam are less than those in China.

In the immediate term, analysts suggest that tariff-related disruptions could work in Apple’s favor as consumers rush to buy more products fearing price hikes. “Dipanjangchatterjee, principal analyst at Forester, stated: [consumers] absorb these price increases as they seek out Apple products.

Source: www.theguardian.com

Wrist Space Invader: Celebrating the Glory of Casio’s Video Game Clocks This Year

Posted on May 2, 2025 by Igor Mitreski

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I’ve been tidying up my attic for the past few weeks, primarily to ensure its contents don’t collapse the ceiling. However, I have a side quest. My most treasured possession at age 12 was the Casio GD-8 car race watch. This digital timepiece featured built-in racing games on a small monochrome LCD screen. The two large buttons on the front allowed players to maneuver left and right to dodge oncoming vehicles, keeping the game alive for as long as possible. I lost count of how many times it was confiscated by teachers, as I often lent it to the toughest boy in class for protection against bullies. As a socially awkward nerd, this watch was crucial for my survival. I’m quite sure I still have it somewhere, and my resolve to find it has been strengthened by recent discoveries about its value.

Casio began producing digital watches in the mid-1970s, striving to compete on price with technology borrowed from the computer industry. As the decade drew to a close, however, the market became saturated, prompting the company to explore new methods to entice buyers. According to Polygon in 2015, “Casio returned to its original philosophy upon entering the watch market.” Yuichi Masuda, senior executive managing officer and Casio Board member, elaborated: “Watches are not merely timekeeping devices.” He noted a shift toward multifunctionality, incorporating features like phone number memory and music alarms alongside time display.

Takeoff… In 1980, kids play Space Invaders.
Photo: Eugene Adebari/Rex/Shutterstock

At that time, Taito’s Space Invaders was a sensation in Japan. Consequently, in 1981, Casio launched the CA-90/CA-901—a thick calculator watch featuring a space-themed shoot-’em-up, where players shot numbers instead of aliens. “Our aim was to create a lifestyle where games could be enjoyed anytime and anywhere,” Masuda explained.

Was Casio inspired by Nintendo’s Game & Watch series? The iconic handheld games debuted in 1980 with titles like Juggler and Ball, paving the way for classics like Donkey Kong, which later influenced the Nintendo DS. However, Shinji Saito, general manager and chief producer for Casio’s Watch Business Unit, disagrees: “In 1980, when Casio launched the CA-90, we also released the MG-880, a gaming calculator allowing users to enjoy digital invaders. While Nintendo’s Game & Watch also launched that year, the CA-90’s concept stemmed from our own development philosophy prioritizing lightness, thinness, shortness, and low power consumption; we were not inspired by Nintendo.”

In fact, during this period, Casio was innovating with features like data banks, thermometers, and pulse checkers. “The entire range of ’80s watches was vast,” watch enthusiast Andy Bagley notes. “I’ve been collecting for years and still discover models I’ve never encountered before. There were hundreds, including touchscreen watches from the ’80s.”

Past Time… Casio Gaming Watch Page from Vintage Casio Catalog
Photo: Casio

Regardless, the CA-90 became so successful that it spurred a golden age of creativity in Casio’s R&D. Between 1980 and 1985, dozens of game watches were produced—an impressive feat given the limitations of LCD technology at the time, which could display only preset shapes and lacked computer graphics or real animations. Various racing games, shooters like Helifizer and Zoom Zap, and rudimentary platformers like Jungle Star and Hungry Mouse were among them.

Some entries were more eccentric, like Aero Batics, a stunt flying game, and Hustle Monira, which involved catching dinosaurs (as opposed to just dodging falling eggs). There were also basic football and golf simulations. Similar to Nintendo’s Game & Watch titles, these watches showcased visually simplistic game designs that felt like science fiction at the time.

Notably, it wasn’t just tech giants creating game watches in the ’80s. The U.S. company Nelsnick obtained a license from Nintendo to make watches featuring games based on Zelda, Super Mario Bros., and Donkey Kong. Additionally, Seiko had its own ALBA game watches throughout that decade. The most aesthetically outrageous models came from veteran toy company Tiger, which produced bulky LCD game watches in the early ’90s based on movie licenses and arcade hits like Double Dragon and Altered Beast. However, as technology advanced and preferences shifted, the portable gaming market exploded with the arrival of the Game Boy in 1989, effectively ending the Game Watch era.

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Today, a thriving collector’s scene exists. “These watches are incredibly sought after and can demand high prices,” Bagley shares. “The downside is that they weren’t very durable compared to all-stainless steel models like the Marlin, so few have survived. In pristine condition, rare and collectible game watches can fetch hundreds to over a thousand pounds.” For collectors like Bagley, these timepieces serve as nostalgic treasures, evoking memories of a time when students were distracted by digital watch beeps rather than social media alerts. “This served as my personal reference guide for the latest models. I eagerly checked the clock section whenever a new catalog arrived to scout for innovations.”

The watch industry continues to take a keen interest in classic video game themes. In 2022, Timex released a limited edition Space Invaders Watch featuring the game’s iconic sounds, and earlier this year, Casio unveiled a collection of beautifully crafted Pac-Man watches, sending fans like me racing to their website’s booking section. For those of us who were nerdy kids in the ’80s, these timepieces felt like the predecessors to smartphones and Apple Watches. Thus, my quest to find my car racing watch is not about its monetary value. It represents a connection to my 12-year-old self, a shared nostalgia for everything lost along the way.

Source: www.theguardian.com

Amazon’s Mixed Revenue Report Causes Stock Prices to Decline

Posted on May 2, 2025 by Igor Mitreski

While Amazon aimed to highlight President Trump’s trade war, it was an unavoidable challenge for the leading online retailer in the U.S.

Initially, the e-commerce giant found itself amid a brief controversy on Tuesday, intertwined with misleading reports suggesting that Amazon revealed customs costs to shoppers.

Just two days later, economic realities hit when Amazon announced its slowest growth in North American retail history.

The company’s largest region contributed to first-quarter financial results, reflecting sluggish sales growth since the peak of the pandemic. Sales from January to March climbed to $155.7 billion, representing a 9% increase from the same period last year. Profits surged 64% to reach $17.1 billion.

For the quarter ending in June, Amazon has advised investors to anticipate revenues between $159 billion and $164 billion, with operating profits expected to decline to $13 billion. The company has included “tariffs and trade policies” as factors contributing to uncertainty in their forecasts.

The results were mixed in comparison to Wall Street expectations, leading to a more than 3% decline in Amazon’s stock during after-hours trading following the earnings release.

“None of us can predict precisely where the tariffs will land or when they will take effect,” stated Amazon CEO Andy Jassy during an investor call. He emphasized the company’s strong focus on reducing prices by procuring additional stock before tariffs are implemented, aiding sellers on Amazon’s platform to do the same.

Investors are analyzing how unforeseen tariffs, not addressed by President Trump, will impact Amazon’s customers. Some speculate that consumer purchases might have accelerated in March and April to avoid impending tariffs, leading to increased spending in otherwise unstable conditions.

Jassy noted that Amazon customers had made “advanced purchases” of certain product types but did not specify which ones.

Various elements contribute to Amazon’s retail revenue. Online product sales directly to consumers increased by 5% to $57.4 billion, while services provided to sellers on the platform grew by 6% to $36.5 billion.

Advertising, viewed by investors as a burgeoning and lucrative sector, rose 18% to $13.9 billion.

Investors have consistently focused on Amazon’s cloud computing division, which generates the majority of the company’s profits. Jassy, who previously led the cloud business before becoming CEO, is expanding the company’s artificial intelligence capabilities. The cloud sector grew by 17% in the first quarter, totaling $29.3 billion.

Jassy remarked that if Amazon had more capacity in its data centers, it could have offered even more cloud services. He mentioned the construction of a new facility equipped with advanced internet and AI-powered technology to alleviate constraints in the coming months. The company is striving to enhance its infrastructure, having reported more than $24 billion in spending during the first three months of the year, which is about $2 billion less than the previous quarter. In February, Amazon announced plans to invest around $100 billion in capital expenditures by 2025.

Source: www.nytimes.com

Apple Beats Wall Street Projections with $24.78 Billion Profit

Posted on May 1, 2025 by Igor Mitreski

Apple has built its reputation on innovation, but recently, it has leaned more towards diplomatic solutions.

Tim Cook, Apple’s CEO, recently secured a tariff exemption for exporting iPhones manufactured in China. This strategic move allowed Apple to focus on business and maintain a strong position.

It facilitated the company’s launch of new budget-friendly iPhones in February, alongside boosting app and service sales. Apple stated that quarterly profits increased by 4.8% from last year, totaling $24.78 billion. Meanwhile, company sales rose 5% to $953.6 billion.

These results surpassed Wall Street Analysts’ expectations of $24.37 billion in profits and $943.5 billion in sales. However, stocks fell by more than 2% in after-hours trading.

Apple’s consistent performance emerged amidst various challenges. Within months, the company faced both internal and external struggles, including setbacks with its highly anticipated artificial intelligence system and the tough tariff policies enforced by the Trump administration on overseas products.

Last month, Apple’s stock took a dive following President Trump’s announcement of a 145% tariff on exports from China, where 80% of iPhones are produced. This measure also affected other countries that manufacture iPads and Macs, such as Vietnam, resulting in a loss of approximately $770 billion in market value over four days.

Wall Street analysts anticipate that Apple may need to raise the iPhone price from $1,000 to $1,600. In response, some customers rushed to purchase iPhones before the potential price hike, leading to a temporary sales boost.

However, three months after donating $1 million to Trump’s inauguration, Tim Cook sought to persuade the White House to ease the tariff restrictions.

Last Thursday, Apple reported that iPhone sales, its primary revenue source, increased by 2% to $46.84 1 billion compared to the previous quarter. There was over a 10% rise in iPhone sales in Japan, India, and the Middle East, leading Apple to secure the largest share of smartphone sales globally in three months, according to Counterpoint Research.

Nevertheless, the company continues to struggle in China, posting a sales decline for the sixth consecutive quarter, with total revenue from the region at $16 billion, down 2% year-over-year.

“We are eager to see the developments at the company’s high-tech research firm,” said Ben Bajarin, principal analyst at Creative Strategies. “The question remains, what if additional tariffs are implemented?”

The company’s services division, which includes app sales, Apple Music, and Apple Pay, has outperformed device sales, generating $26.65 billion in revenue, reflecting an 11.6% increase from the previous year.

However, the future stability of Apple’s services division is in question. Recently, a federal judge criticized the company’s business practices under antitrust laws, ruling that Apple could not impose a 27% fee on selling apps outside its app store, undermining a key revenue stream.

In another antitrust matter, Apple risks losing the $2 billion in service revenue derived from Google’s payment for being the default search engine on iPhone web browsers. A federal ruling last year determined that Google maintained an illegal search monopoly, with hearings planned to address these activities.

The device division also faces uncertainties. Last year, Apple unveiled a generational AI system aimed at enhancing email, summarizing notifications, and upgrading Siri, its virtual assistant. This system was marketed as a primary reason to purchase a new iPhone. However, in March, the company announced it would be delayed until this fall.

Source: www.nytimes.com

The Dubai Conference to Address Trump’s Controversies

Posted on May 1, 2025 by Igor Mitreski

Addressing a bustling auditorium in Dubai, the founder of the Trump family’s cryptocurrency venture made an impactful announcement on Thursday. The Abu Dhabi-supported fund disclosed plans to utilize Trump company’s digital coins for $2 billion in business dealings.

This agreement marks a significant investment from foreign governments into President Trump’s private enterprise, aiming to generate substantial income for the Trump family. It also serves as a striking example of the ethical dilemmas surrounding Trump’s crypto business, blurring the lines between governmental and business interests.

Zach Witkoff, founder of World Liberty Financial, the Trump’s crypto firm, announced that the innovative Stablecoin created by the company will facilitate a transaction involving the globe’s largest crypto exchange, the state-backed Emirati investment firm MGX, and Binance.

Almost every aspect of Witkoff’s announcement, presented during a conference committee alongside Trump’s second son, Erdest, highlighted an inherent conflict of interest.

As MGX engages with World Freedom’s USD1 Stablecoin, Trump’s family business leads the way in collaboration with foreign government-backed ventures. This agreement establishes a formal connection between World Freedom and Binance, a platform under US scrutiny since 2023 due to previous money laundering violations.

The glamorous announcement served as a beacon for crypto investors worldwide, showcasing the potential for partnership with a firm associated with President Trump, who is recognized as a leading advocate for global Liberty.

“We appreciate MGX and Binance for their confidence in us,” stated Witkoff, whose family has ties to a Middle Eastern White House envoy. “This is just the beginning.”

Witkoff and Eric Trump participated in a panel at Token2049, a prominent crypto conference occurring in the UAE. This event is part of Witkoff’s ongoing international tour, having visited Pakistan the previous month to engage with the Prime Minister and other officials. Eric Trump has been in Dubai for a week, revealing plans to promote Trump-branded hotels and towers.

In two weeks, the president will embark on a state visit to Saudi Arabia, Qatar, and the UAE.

The panel featuring Witkoff and Eric Trump was the highlight of the Dubai conference. The venue, a luxurious resort along the Persian Gulf, was packed with crypto investors from around the globe.

“This country is incredible,” Witkoff remarked from the stage. “Today, it stands as one of the most, if not the most, innovative nations on the planet.”

Representatives from Binance, MGX, and World Liberty did not respond to requests for comments.

President Trump, who previously expressed skepticism towards cryptocurrencies, embraced digital currencies during his campaign as the industry invested tens of millions into the 2024 election. Last September, he and his sons introduced the concept of World Freedom as a new internet banking platform facilitating borrowing and lending using cryptocurrencies.

Since then, World Liberty has sold $550 million worth of the new cryptocurrency, known as $WLFI, allocating significant revenue to business entities linked to the Trump family. Moreover, the company launched Stablecoin in March, designed to maintain a consistent dollar value, making it favorable for large transactions.

The transactions conducted by the company have created an unprecedented conflict of interest in modern American history. Some investors purchasing $WLFI coins are foreigners prohibited from supporting the president through campaign contributions or donations. Furthermore, many corporate partners have strong incentives to seek favors from the federal government as they plan to expand within the US market.

The panelist lineup at the Dubai event underscores the ambiguity surrounding the Trump family’s business interests relative to US policy and regulations.

Joining Witkoff and Eric Trump on stage was Justin Sun, one of the leading Liberty investors and a Chinese-born billionaire behind the crypto platform Tron. Sun acquired $75 million in $WLFI coins following the election.

Approximately a year ago, the Securities and Exchange Commission filed a lawsuit against Sun, alleging he manipulated Tron cryptocurrency prices. When Trump assumed office, the SEC requested federal judges to pause the lawsuit while negotiating a settlement.

“I’ve come to value your support,” Justin remarked. “Tron is remarkable technology, and we are fortunate to partner with you.”

Witkoff soon made a significant announcement during the panel.

In March, Binance revealed that MGX, an investment fund backed by the Abu Dhabi government, would utilize Stablecoins for a $2 billion investment in exchange, although the specific Stablecoin to be employed was not disclosed.

Witkoff confirmed that the chosen coin for the transaction is World Liberty USD1.

“Wow,” Sun responded.

The leaders of MGX and Binance maintain significant stakes with US officials.

MGX is headed by Sheikh Tanoon bin Zayed Al Nahyan of the Emirati Royal Family, who also serves as the national security adviser. In March, Sheikh Tanoon visited the United States for discussions with President Trump and various Cabinet members and advisors.

In 2023, Binance acknowledged guilt regarding violations of US money laundering laws, enabling criminals to conduct trades on its platform. As part of a settlement with the Department of Justice and other federal agencies, the company fell under the supervision of the Department of Treasury to ensure legal compliance.

In recent months, Binance’s founder, Changpeng Zhao, has pleaded guilty to money laundering offenses and sought clemency from the Trump administration after spending four months incarcerated.

The role of USD1 in the Binance-MGX deal significantly underpins the World’s Freedom.

Stablecoin issuers like World Liberty generate income by accepting deposits from investors, issuing Stablecoins in return, and investing those deposits to produce yields.

While the precise nature of the arrangement between MGX and Binance remains unclear, it appears World Liberty currently holds $2 billion in deposits. This alone could yield tens of millions in annual income for the Trump family and their World Liberty associates.

Ultimately, Witkoff expressed optimism from the Dubai stage, anticipating that the World’s Liberty Stablecoin would escalate further, reaching “billions in market capitalization.”

One day, he envisioned that visitors to the UAE might utilize USD1 coins for payments at Abu Dhabi’s Four Seasons.

At that moment, Eric Trump interjected.

“I’m not stepping into the Four Seasons with USD1,” he remarked. “You’ll find me at the Trump International Hotel and Tower.”

Source: www.nytimes.com

How Google’s Antitrust Case Reshapes the AI Competition

Posted on May 1, 2025 by Igor Mitreski

A federal judge made a significant ruling last year, declaring Google as a dominant player in the internet search industry. However, during a recent hearing aimed at addressing this issue, the focus shifted towards the rapidly evolving technology of artificial intelligence.

In a U.S. District Court session in Washington last week, a Justice Department attorney contended that Google’s search monopoly could hinder transparency within the company regarding the development of its AI chatbot, Gemini. Rivals in the AI sector also noted that Google’s influence poses a challenge to their success.

On Wednesday, the first critical question was directed at Google CEO Sundar Pichai. AI topics emerged more than 20 times during a 90-minute testimony after he took the stand.

“I consider it one of the most dynamic moments in the industry,” Pichai remarked. “I’ve observed user home screens featuring seven to nine chatbot applications that they’re experimenting with and refining.”

The antitrust lawsuits of the past have essentially morphed into a debate about the future, with both the government and Google suggesting modifications to the tech giant’s business practices that could alter the trajectory of AI development.

For over two decades, Google’s search engine has dominated the online information landscape. Now, federal courts are assessing whether the Silicon Valley behemoths will lead the next phase of how users access information as consumers increasingly turn to new chatbot technologies for answers and solutions.

During the proceedings, government attorneys asserted that Google’s monopolistic search strategies could facilitate the widespread adoption of its Gemini Chatbot. They argue that the burgeoning AI sector should not allow consumers to be deprived of diverse product alternatives.

Google countered by stating that OpenAI’s rapid ascent (the AI startup powering Apple’s products) showcases the existing competition, asserting that intervention from the courts is unnecessary.

Judge Amit P. Mehta, who is overseeing the search-related cases, may reshape this fierce competition and influence technology policy through these AI discussions. Google is already a leading AI entity, with Gemini attracting over 350 million active users monthly. Any measures to curb this endeavor or support competitors will greatly impact the race.

The government has requested the court to mandate Google to divest its Chrome browser and share data with competitors, which includes search results and advertisements, along with other actions.

These government initiatives are inherently forward-looking, aiming to dismantle long-standing monopolistic practices and open the market to new challengers. As John Newman, deputy director of the Competition Bureau during the Biden administration, stated, “You don’t want to spend five years on a case that leads to no substantial action and consumes resources across multiple agencies.”

A spokesperson for Google highlighted John Schmidtlein, the company’s lead counsel, who claimed that the artificial intelligence market is “extremely competitive.” The Department of Justice has opted not to provide comments.

This year’s hearings follow a 2024 ruling that found Google illicitly maintained its monopoly by compensating companies like Apple, Mozilla, and Samsung, ensuring its search engine’s automatic prominence on web browsers and smartphones.

From the start of the hearings, the focus has remained firmly on artificial intelligence.

Professor Gregory Dullett, an associate professor of computer science at the University of Texas, was the first witness, providing Judge Mehta with an overview of AI technologies and their integration into Google’s products.

The government presented documentation indicating that last year, Google contemplated a deal with wireless carriers and smartphone manufacturers for premium placement of Gemini Prime alongside its search engine, reminiscent of a previous arrangement for prominent search engine positioning.

After the judge’s ruling last year regarding search practices, Google opted not to pursue the Gemini initiative with wireless carriers and phone manufacturers. Ultimately, separate agreements were reached with Samsung to feature Gemini on their devices, as documented.

Google executives testified that their partnership with Samsung allowed smartphone makers to collaborate with other AI services. Pichai noted that the company is focused on forming partnerships in alignment with its relief proposals, emphasizing that smartphone manufacturers should have greater autonomy in determining which Google applications to utilize.

Executives from competing AI firms, including OpenAI, shared that proposed changes to Google’s business practices would help facilitate product development and consumer access.

Nicholas Turley, head of product for OpenAI’s ChatGPT, revealed that his company developed a prototype search tool called SearchGPT in July, requesting Google to participate in a transaction for data access. However, an email from OpenAI’s team indicated that Google rejected the request due to its “complexity.”

“Given the competitive nature of our products, we recognized that Google might not be inclined to offer favorable terms,” Turley remarked, adding that if Judge Mehta compels Google to provide greater data access to OpenAI, their company could “develop better products more swiftly.”

OpenAI has also expressed interest in acquiring Google’s Chrome browser if it becomes available for sale, Turley noted.

(The New York Times has sued OpenAI and Microsoft regarding copyright infringement related to news content and AI systems, both parties have denied these allegations.)

Dmitry Shevelenko, chief business officer of AI search startup Confusion, testified that his organization sought a deal with a telecom company to source a chatbot, which was already in an arrangement with Google.

He stated, “They really appreciate our assistant and believe it enhances user experience, but we can’t modify the default assistant on our devices due to our obligations to Google.”

Google’s legal team countered that the company has not imposed overly restrictive agreements on smartphone manufacturers concerning Gemini. They reiterated that many AI firms are flourishing, citing data showing that ChatGPT surpasses all other chatbots in usage.

“I believe ChatGPT is performing well without any interventions required in this case,” Schmidtlein stated in his opening remarks. “These companies are thriving independently of the plaintiff’s proposed solutions.”

Source: www.nytimes.com

Pastor Revises Data Bill in Response to Artists’ AI and Copyright Concerns

Posted on May 1, 2025 by Igor Mitreski

The minister proposed concessions regarding copyright modifications to address the concerns of artists and creators ahead of a crucial vote in Congress next week, according to the Guardian.

The government is dedicated to conducting economic impact assessments for the proposed copyright changes and releasing reports on matters like data accessibility for AI developers.

These concessions aim to alleviate worries among Congress members and the creative sector regarding the government’s planned reforms to copyright regulations.

Prominent artists such as Paul McCartney and Tom Stoppard have rallied behind a campaign opposing a range of high-profile intervention changes. Elton John remarked that the reforms “will expand traditional copyright laws that safeguard artists’ livelihoods.”

The Minister intends to permit AI companies to utilize copyrighted works for model training without acquiring permission, unless the copyright holder opts out. Creatives argue this favors AI firms and expresses a desire to adhere to existing copyright laws.

The government’s pledge will be reflected in amendments to the data bill, which will serve as a key instrument for advocates opposing the proposed changes and is scheduled to be discussed in the Commons next Wednesday.

The initiative has already faced criticism. Crossbench peer and activist Beevan Kidron stated that the minister’s amendments would not “meet the moment” and indicated that the Liberal Democrats would propose their revisions to compel AI companies to comply with current copyright laws.

British composer Ed Newton Rex, a notable opponent of the government’s proposal, argued there is “extensive evidence” suggesting that the changes “are detrimental for creators.” He added that no impact assessment was needed to convey this.

Ahead of next week’s vote, Science and Technology Secretary Peter Kyle sought to establish rapport within the creative community.

During a meeting with music industry stakeholders this week, Kyle acknowledged that his focus on engaging with the tech sector has frustrated creatives. He faced backlash after holding over 20 meetings with tech representatives but none with those from the creative sector.

Kyle further stirred criticism by stating at the conference that AI companies might choose to relocate to countries like Saudi Arabia unless the UK revamps its copyright framework. This was not discussed at a Downing Street meeting with MPs this week.

Government insiders assert that AI firms are already based abroad and emphasize that if the UK does not reform its laws, creatives may lack avenues to challenge the exploitation of materials by overseas companies.

According to government sources, the minister has not established an opt-out system and maintains “a much broader and more open-minded perspective.”

However, Labour lawmakers contend that the minister “has not proven any substantial job growth in return” and is yielding to American interests. They criticize this as, at best, outsourcing and, at worst, total exploitation.

Kidron, who has successfully amended the Lords’ data bill while opposing the government’s reforms, remarked, “The moment is not right for pushing the issue into the long grass with reports and reviews.”

“I ask the government why they neglect to protect UK property rights, fail to recognize the growth potential of UK creative industries, and ignore British AI companies that express concerns over favoritism towards firms based in China,” she stated.

James Fris, a Labour member of the Culture, Media and Sports Selection Committee who facilitated discussions on the matter this month, asserted, “The mission of the creative sector cannot equate to submission to the tech industry.”

Kidron’s amendments, aimed at making AI companies accountable under UK copyright laws regardless of location, were withdrawn in the Commons, but the Liberal Democrats plan to reintroduce them next week.

The Liberal Democrats’ proposal includes a requirement for AI model developers (the technology that supports AI systems like chatbots) to adhere to UK copyright laws and clarify the copyrighted materials incorporated during development.

The Liberal Democrat amendment also demands transparency regarding the web crawlers used by AI companies, referring to the technology that gathers data from the Internet for AI models.

Victoria Collins, spokesperson for Liberal Democrat Technology, stated:

“Next week in the Commons, we will work to prevent AI copyright laws from being diluted and push Parliament to urge lawmakers to stand with us in support of UK creators.”

Source: www.theguardian.com

Tesla’s Chair Claims Board Did Not Attempt to Replace Elon Musk

Posted on May 1, 2025 by Igor Mitreski

The chairman of Tesla’s board has refuted claims regarding his search for a successor to CEO Elon Musk, who has been preoccupied with President Trump while the company’s sales and profits have notably declined.

Robin Denholm, who has chaired the board for over six years, stated on X that the Wall Street Journal report was “completely unfounded.”

“Elon Musk is Tesla’s CEO, and the board is highly confident in our ability to pursue our exciting growth initiatives,” Denholm announced on a Tesla account linked to Musk’s social media platform, X.

The Wall Street Journal reported late Wednesday that approximately a month ago, the Tesla board reached out to an executive search firm for assistance in finding a potential alternative to Musk, citing “individuals with relevant expertise.”

Following a 71% drop in quarterly profit reported last week, Musk has committed to dedicating more time to Tesla and less to Washington. He mentioned he spends one or two days weekly on administrative tasks.

Musk’s absence from Tesla, as he focuses on efforts to reduce government spending under Trump, has stirred frustration among investors. His association with right-wing movements in Europe has sparked protests at Tesla dealerships and contributed to decreasing sales, as electric vehicle buyers generally lean more liberal or centrist.

Recent reports indicated that Tesla’s revenue fell 9% in the first quarter of this year, amounting to $19.3 billion.

Automakers are losing market share in the US, China, and Europe, as competitors like BYD, General Motors, Volkswagen, and others roll out numerous electric models. Analysts have criticized Tesla for not broadening its offerings beyond the two main vehicles.

The Model Y SUVs and Model 3 sedans account for a substantial portion of Tesla’s sales. Musk indicated that Tesla’s latest vehicle, the CyberTruck, is not yet available for sale.

Source: www.nytimes.com

Meta Surpasses Wall Street Expectations with Quarterly Revenues Boosted by Billion-Dollar AI Investments

Posted on May 1, 2025 by Igor Mitreski

On Wednesday, Meta announced its revenues, exceeding Wall Street’s forecasts for yet another quarter, while simultaneously generating billions with artificial intelligence.

In the first quarter of 2025, Meta reported a revenue of $423.2 billion, surpassing both its own projected high of $41.8 billion and the Wall Street expectation of $413.8 billion.

The company also disclosed earnings per share of $6.43, significantly exceeding Wall Street’s prediction of $5.27, leading to a surge in stock prices after market hours.

“This is a strong start to what is set to be a pivotal year for us. Our community continues to expand, and our business model is performing effectively,” stated Mark Zuckerberg, Meta’s CEO. “We are making notable advancements in AI glasses and Meta AI, with approximately 1 billion active monthly users.”

Zuckerberg conveyed in a discussion with investors that the company is performing well, its platform is expanding, and it is prepared to navigate the prevailing macroeconomic uncertainties.

“We maintain the belief that this year will be crucial in our industry,” he remarked.

This marks a continuation of Meta’s succesful track record in surpassing Wall Street expectations over recent quarters. However, it remains uncertain whether this will alleviate investor apprehensions. Analysts expressed dissatisfaction regarding the company’s first-quarter revenue outlook shared at the end of 2024. The firm plans to allocate between $64 million and $72 billion for capital expenditures, focusing on building AI infrastructure, a revision from the previous estimate of $65 billion. Total expenses for the first quarter had already reached $24.76 billion, marking a 9% year-over-year increase. The unpredictable nature of Donald Trump’s tariffs could still disrupt the advertising market and cloud the company’s financial forecast for the upcoming quarters.

Senior analyst Minda Smiley from eMarketer noted that the company’s “optimistic second quarter guidance indicates a lack of expectation for a significant decline in advertising revenue due to tariffs.” However, she expressed doubt about Meta’s ability to avoid long-term recession effects.

“Conversely, companies may take advantage of economic instability. Advertisers are likely to shift their spending towards established platforms like Facebook and Instagram while avoiding smaller social media networks,” added Smiley. “Nevertheless, a significant portion of Meta’s revenue is relying on advertising from Chinese retailers such as Temu and Shein targeting US consumers, whose spending is decreasing due to changing trade conditions and tariffs.”

Meta’s continued spending also “remains a concern for investors,” according to Debra Aho Williamson, founder and chief analyst at Sonata Insights. “Despite this, Meta has stayed away from directly monetizing AI this year, instead focusing on enhancing AI engagement amongst developers, app users, and advertisers,” remarked Williamson.

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In the lead-up to the revenue report, Meta has made headlines with mixed AI-related developments, including the release of a standalone AI application intended to compete with ChatGPT. A WSJ Report highlighted that existing chatbots integrated into various products, such as Facebook and Instagram, have enabled teenagers to engage in “romantic role-plays.” Meta executives have consistently emphasized the approximately 1 billion users of their AI chatbots. However, many of these users access chatbots through complex paths within WhatsApp, Instagram, and Facebook. The company has not disclosed specifics about user interactions with chatbots or the depth of these engagements necessary to classify as AI chatbot users.

Alongside ongoing antitrust trials—where the company faces allegations of establishing an illegal social media monopoly through the acquisition of Instagram and WhatsApp—additional concerns loom for analysts regarding Meta’s financial stability, despite the seemingly positive figures.

“Meta’s revenue announcements arrive during a turbulent period, as the company faces potential changes to its future. As discussed in court, the outcomes could fundamentally reshape the social media landscape,” observed Forrester VP Mike Pulx. “Focusing more resources on enhancing Threads and Facebook might be crucial, as these could be the last remaining platforms of value for the company. Additionally, it’s noteworthy that Meta has significantly reduced its workforce within the Reality Labs division, which is struggling and ongoing.”

Source: www.theguardian.com

If Apple Halts Production in China, Its Value Could plummet by 50%

Posted on May 1, 2025 by Igor Mitreski

Several years prior to Donald J. Trump’s entry into politics, Apple, together with its partners, established extensive factories throughout China to assemble the iPhone. Trump’s presidential campaign began by promising his supporters that he would compel Apple to manufacture those products domestically.

Nearly a decade later, the situation has changed little. Rather than shifting manufacturing back home, Apple has transferred production from China to India, Vietnam, and Thailand, with approximately 80% of iPhones still being made in China.

Despite enduring pressure over the years, Apple’s business remains heavily reliant on China, making it impossible for the tech giant to operate without it. After actions taken by the Trump administration, the risks associated with Apple’s operations have prompted concerns for the world’s most valuable publicly traded companies. Significant efforts to relocate Apple’s production to the US would require immense collaboration between the company and the federal government.

Just four days after President Trump announced tariffs on 145% of Chinese exports last month, Apple saw a decline of $770 billion in its market capitalization. The company recouped some of these losses after the President granted a temporary reprieve to Chinese appliance manufacturers.

On Thursday, Wall Street analysts are anticipating a 4% increase in Apple’s most recent quarterly report. This surge comes as consumers rushed to purchase iPhones before the tariffs took effect. The report will provide an opportunity for analysts to question Apple CEO Tim Cook regarding future tariffs, price hikes, and potential risks in both China and the US.

An Apple representative declined to provide executives for interviews for this article. The company announced plans to invest $500 billion in the US over the next four years and will commence manufacturing artificial intelligence servers in Houston by 2026.

“The scrutiny is warranted as they are most at risk from a complete breakdown between the US and China,” stated David Yoffie, a Harvard Business School professor who has authored a case study on Apple.

Gene Munster, managing partner at Deepwater Asset Management, which invests in emerging technology firms, estimates that a total breakdown in relations between the US and China could diminish Apple’s value by more than half. Even if a third of sales moves production to alternate countries, a significant portion of that revenue still relies on products manufactured in China, potentially reducing a $3.2 trillion company to a $1.6 trillion entity. Additionally, if Apple loses sales to Chinese consumers, similar to rival Samsung during the South Korea-China conflict, the value could plummet to $1.2 trillion, especially considering that Beijing has already discouraged government officials from purchasing iPhones.

A substantial decrease in Apple’s value would create significant ripples throughout the stock market, as the company accounts for around 6% of the S&P 500 index. This implies that for every dollar invested in the fund, approximately six cents would be allocated to Apple stocks, leading to a potential halving of returns for investors and the majority of 401(k) holders.

Apple’s connections within China run deep. Decades ago, the company collaborated with Beijing to establish manufacturing operations in China without needing to create a joint venture with local firms, a requirement faced by many US companies. This groundwork allowed Apple to assemble devices affordably in China and sell to the rising middle class, resulting in over 80% of global smartphone profits and generating $67 billion in annual sales in the region.

Over time, Apple’s relationships with China have only strengthened. Today, not only are most iPhones manufactured in China, but Chinese suppliers also produce components for devices made in India and create parts and AirPods in Vietnam.

Apple’s dependence on China has transformed the supply chain into a Rorschach test for the Trump administration. Apple wields more power than any other technology company and achieves its management objectives effectively. The company produces more smartphones than anyone else, invests heavily in components, and significantly impacts the operational landscape of its suppliers.

The Trump administration is hopeful that Apple will initiate a shift. During an interview in April, Commerce Secretary Howard Lutnick remarked, “A workforce of millions is assembling the screws that make iPhones — similar operations will come to America.”

However, pressure on Apple to exit China may prove counterproductive. New tariffs could compel Apple to increase iPhone prices or diminish its smartphone profits. Samsung’s devices, manufactured in Vietnam and exempt from Chinese tariffs, could become cheaper as a result. This could lead to reduced competition in the domestic market, a scenario that Trump is reluctant to embrace.

Apple has resisted the notion of manufacturing iPhones and other devices in the US, as its operations team concluded it would be unfeasible, according to two individuals familiar with the discussions who spoke on condition of anonymity. Ten years ago, finding dependable workers to procure screws and assemble Mac computers in Texas proved challenging.

In China, Apple’s suppliers can recruit around 200,000 workers, who operate in factories monitored by thousands of engineers with extensive manufacturing experience. Many reside in dormitories close to iPhone factories, where components move along the assembly line spanning distances longer than a soccer field.

Wayne Lam, an analyst from TechInsights, states that many employees and seasoned engineers have found it nearly impossible to replicate this in most American cities. He asserts that Apple must develop more automated processes using robotics to compensate for the lower population in the US.

Lam estimates that if Apple were to establish operations in the US, it may have to charge around $2,000 for an iPhone (currently about $1,000) to sustain its existing profit margins. Prices could fall to $1,500 in the future as the company mitigates employee training costs and component production expenses.

“In the short term, it’s not economically viable,” Lam remarked. He also noted that shifting device production back home after nearly 20 years would seem impractical and may complicate the introduction of new products to consumers.

Apple has demonstrated a willingness to adjust its supply chain when adequately incentivized. In 2017, the company began the process of manufacturing an iPhone in India due to elevated import taxes that would inflate prices, hindering their ability to capture market share in the world’s fastest-growing smartphone sector.

Currently, Apple sells approximately 20% of its iPhones globally in India and also produces several components, including metal frames there. However, they still depend on Chinese manufacturers for assembling displays and other intricate parts.

Matthew Moore, a former manufacturing design manager at Apple, emphasized that India offers an advantage the US lacks: “engineers are plentiful everywhere.”

Moore argues that in order to attract Apple and other electronics firms to the United States, the Trump administration must invest in education for science, technology, engineering, and math degrees. Additionally, he believes that there should be incentives for loans towards new manufacturing facilities and affordable housing through Fannie Mae and Freddie Mac.

Last month, Apple temporarily benefitted from a delay. Cook, who has personally donated $1 million to Trump’s inauguration, lobbied the administration for the exemption that spared iPhones and other electronic devices from the 145% tax on Chinese imports. However, this reprieve is temporary, as the administration plans to implement more targeted tariffs on high-tech products.

Without governmental investment, Apple and smaller manufacturers will continue their production in China, as they possess the surplus equipment and engineering staff necessary, according to Moore.

“I don’t believe the ship has sailed; however, it is unrealistic to expect them to manufacture an iPhone here,” Moore commented. “This will require a decade.”

Source: www.nytimes.com

Tesla Refutes Claims of Seeking Alternatives to Elon Musk on the Board

Posted on May 1, 2025 by Igor Mitreski

Tesla has refuted claims that its board sought to replace Elon Musk as CEO in response to backlash over his right-wing views and decreasing vehicle sales.

Robin Denholm, chair of the electric vehicle manufacturer’s board, stated on Tesla’s social media account on X:

“This is completely inaccurate (and this was conveyed to the media prior to the release of the report). Elon Musk is Tesla’s CEO, and the board has full confidence in its ability to continue executing our ambitious growth plans.”

Tesla CEO Elon Musk. Photo: Evelyn Hockstein/Reuters

Following a report from the Wall Street Journal on Wednesday, “board members” are said to have contacted a headhunter to explore potential successors about a month ago.

This reported action has allowed Donald Trump to influence federal spending as the informal head of the “Doctors of Government Efficiency” (DOGE), amidst rising tensions at Tesla due to Musk’s extensive involvement in Washington.

It remains unclear whether these board members acted collectively or individually in seeking to identify a new CEO. The Tesla Committee consists of eight members, including Elon Musk, his brother Kimbal Musk, and James Murdoch, son of media mogul Rupert Murdoch.

Tesla has faced significant backlash over Musk’s recent political activities, including his public support for actions against Germany’s far-right Alternative for Germany (AfD) party ahead of the national elections in February. Sales of electric vehicles have dropped in some major markets, accompanied by political protests at various showrooms.

Recently, the company reported a 71% decrease in profits for the first quarter of this year, down from $139 billion in the same period of 2024.

Musk informed investors that he would “dedicate significantly more time to Tesla” beginning in May. He is expected to conclude his role at DOGE by May 30, adhering to the 130-day limit imposed on his service as a special government employee.

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Concerns have persisted regarding the demands of the Musk era. In addition to Tesla, he manages four other companies, including the space exploration firm SpaceX and the social media platform X, formerly Twitter.

On Thursday, Musk criticized the Wall Street Journal report on X, stating: “It is an ethical violation that @WSJ deliberately publishes false reports and fails to present a clear denial from Tesla’s board beforehand!”

Source: www.theguardian.com

How “Native English” Scattered Spider Groups Are Connected to M&S Attacks

Posted on May 1, 2025 by Igor Mitreski

One significant distinction between certain members of the dispersed spider hacking community and their ransomware counterparts is their accent.

The scattered spiders are connected to the cyberattacks on the British retailer Marks & Spencer. Unlike typical ransomware attackers, the individuals involved seem to be native English speakers, rather than hailing from Russia or former Soviet nations.

This linguistic advantage supports one of their techniques, which Russian hackers may find difficult to emulate. They can infiltrate systems by calling company desks and impersonating employees or by contacting employees while posing as someone from their company desk.

“Being a native English speaker can foster immediate trust. Even internal staff and IT teams may let their guard down slightly due to perceived familiarity,”

Last November, the U.S. Department of Justice shed light on some suspected spider members by charging five individuals for targeting an unidentified American firm through a phishing text message.

The DOJ alleged that the accused sent fraudulent texts to employees, tricking them into divulging sensitive information, including company logins. This breach resulted in the theft of sensitive data, including intellectual property, and significant sums of cryptocurrency from digital wallets.

All the accused were in their 20s at the time of the allegations, with four of them aged between 20 and 25, and Tyler Buchanan, 23, from Scotland, who was extradited from Spain to the U.S. last week. He is set to appear in court in Los Angeles on May 12th.

The U.S. Cybersecurity Agency detailed the scattered spider IT desk strategy in an advisory released in 2023.

Notable ransomware victims of scattered spider attacks include casino operators MGM Resorts and Caesars Entertainment, which were targeted in 2023. Following the attacks, the West Midlands police arrested a 17-year-old in Walsall last year. They have been contacted for further updates on this incident.

The scattered spider was identified as responsible for the M&S breach by BleepingComputer, a high-tech news platform. The report indicated that the attackers employed malicious software known as Dragonforce to compromise parts of the retailer’s IT network.

These incidents are categorized as ransomware attacks because the attackers typically demand substantial payments in cryptocurrency to restore access to compromised systems. Leveraging ransomware from other gangs is a common occurrence, known as the model of ransomware-as-a-service.

Analysts from cybersecurity firm Recorded Future remarked that “scattered spiders” is more of an “umbrella term” rather than a specific group of financially motivated cybercriminals. They noted it stemmed from “The Com” rather than “monolithic entities,” and is engaged in various criminal activities, including sextortion, cyberstalking, and payment card fraud.

“We operate within a channel and affiliate marketing framework, primarily on platforms like Discord and Telegram, mostly in exclusive invitation-only channels and groups,” stated the analyst.

Ciaran Martin, former head of the UK’s National Cybersecurity Centre, remarked that scattered spiders are “unusual” given their non-Russian origins.

“The vast majority of ransomware groups originate from Russia. [Scattered Spider] seems to have utilized Russian code for this attack with Dragonforce, but notably, they appear to be based here and in the U.S., which may facilitate their arrest.” Martin, now a professor at Brabatnik Government School at Oxford University, added:

Martin further emphasized that the youthful infamy of scattered spiders should not diminish the threat they pose. “They are indeed a rare but quietly menacing group,” he noted.

Source: www.theguardian.com

Sky Glass Gen 2 Review: Elevating Smart Streaming TV Experience

Posted on May 1, 2025 by Igor Mitreski

The new Sky Glass Smart TV version brings all-in-one functionality, making Pay TV quicker, clearer, and free from satellite use, proving to be one of the top models available compared to its predecessors.

The Sky Glass Gen 2 serves as the direct successor to the initial 2021 model, which introduced Sky’s broadband-based TV service, eliminating the need for satellite dishes. Available in three sizes, the smallest being 43 inches, it can be purchased with a one-time payment over four years, after which you fully own it.

Starting at £15 per month for Sky Essential TV Packs, a Sky subscription is necessary for full access. While you can’t use the TV without a subscription, should you decide to cancel in the future, it functions as a basic smart TV with access to streaming apps like BBC iPlayer, equipped with a basic aerial and multiple HDMI inputs.

The Gen 2 is available in three colors, complete with a matching remote control. Photo: Sky UK

From the front, the Gen 2 closely resembles its predecessor, featuring a sleek, monolithic design with an aluminum body, a slim bezel, and a soundbar cleverly concealed behind a mesh that matches the bottom colors. The voice-activated microphone responds to “Hello Sky.” Although the Glass Gen 2 is thinner and lighter than the previous model, it remains on the heavier side compared to newer models. The 43-inch version weighs 14.7kg, while the larger 55-inch and 65-inch variants necessitate the assistance of two people for safe handling.

The newly designed stand simplifies setup, even for the tested 65-inch model, as the TV easily slots into two prongs and requires a stable mount secured with screws and tools. For internet connectivity, a power cable and WiFi or Ethernet connection are essential. Wall brackets are sold separately.

The TV detects movement and powers on/off as needed, displaying full-screen recommendations for the latest shows and movies. Photo: Samuel Gibbs/The Guardian

The vibrant 4K LCD display is notably brighter than the previous version, with improved black depths and significantly reduced halo effects. The screen’s automatic brightness adjustments can make content look overly dark in rooms that aren’t brightly lit, but turning this feature off enhances viewing.

Sky has included an automatic image optimization mode that detects content types such as entertainment, sports, and movies. Additionally, modes like manual, vibrant, and film are available for those who prefer more intense colors. The entertainment mode can make skin tones appear overly warm, while I found the film mode to be more balanced, also offering a custom mode for personalized adjustments.

The screen’s capabilities shine when displaying HDR content, be it films, shows, or sports. The Premier League looks crisp and lively, while titles like Mad Max: Fury Road in Dolby Vision are particularly impressive. However, this TV isn’t the most suitable option for gaming on consoles like the Xbox or PS5, as it lacks variable refresh rates up to 120Hz, which are advantageous for console games.

Impressive Sound and Clarity

The speakers are positioned on the grill at the top and the fabric strip at the bottom of the screen. Photo: Samuel Gibbs/The Guardian

A significant benefit of Sky Glass over conventional TVs is the built-in speaker soundbar. Vocals maintain clarity at nearly all volumes, sidestepping the common lip-sync issues found with external soundbars. Even without an additional subwoofer or rear speakers, it impressively delivers substantial sound.

However, it struggles to produce deep, rich bass, and while the sound has impressive width, virtual surround effects are limited, necessitating more complex systems with additional speakers to achieve this.

The TV also features night mode, audio enhancement, and bass boost settings. The night mode is especially handy for lowering loud sounds while ensuring dialogue remains comprehensible, making it ideal for late-night screenings without disturbing others.

Enhanced Sky Over Broadband

To stream HD, a minimum of 25Mbps is required; for UHD broadcasts, 30Mbps is necessary, but Sky’s broadband service does not need to operate at these levels. Photo: Samuel Gibbs/The Guardian

Since the original Glass launched in 2021, the robustness of the Sky OS service has greatly improved. It still offers excellent search capabilities and advanced playlist features, alongside multiple user profiles that allow each family member to maintain their own lists and recommendations, including children’s profiles.

The playlist feature automatically tracks new episodes from shows or movies you are interested in, directing you to a “Continue Watching” section, making it easy to return to the content you’ve already begun.

Features like live TV, pause, and rewind function seamlessly. Recent reductions in broadcast delays greatly enhance the experience, ensuring thrilling moments aren’t missed for friends relying on satellite or aerial feeds.

On-demand content from the Sky Platform works effectively, and third-party services like BBC iPlayer, ITV X, and Channel 4 have seen significant enhancements compared to previous reliance on recordings. While not quite as seamless and speedy as local recordings on Sky Q and similar PVRs, most apps launch quickly, perform well, and lead directly to the desired episode from your playlist or search result.

It supports most leading on-demand services, including My5, YouTube, Prime Video, Disney+, Paramount+, Apple TV+, Discovery+, and others, allowing for all content to be easily accessed in one location.

Voice control is operational via remote buttons, though the TV’s voice activation is somewhat unpredictable, comprehending commands about 60% of the time. Photo: Samuel Gibbs/The Guardian

Sustainability

The TV is designed for repair, featuring 22% recycled materials, such as aluminum, fabric, tin, and plastic. The manufacturer also recycles old devices and packages the TV using plastic-free materials.

Pricing

The price for Sky Glass Gen 2 is £699 for the 43-inch model, £949 for the 55-inch model, and £1,199 for the 65-inch model, with no-interest payment plans available for either 24 or 48 months for all models.

The 24-month plans for Sky Essential TV start at £15 monthly; Sky Ultimate TV begins at £22 per month; UHD with Dolby Atmos costs an additional £6, along with options to skip ads. Other available add-ons include Sky Sports starting from £31 monthly, TNT Sports from £31, Sky Cinema from £13, and Sky Kids at £8. Discounts are possible with certain combinations, although pricing varies for different packages every 31 days.

Conclusion

While the first generation of Glass needed refinement, the Gen 2 addresses many of its shortcomings effectively.

It offers a brighter, faster display with higher contrast and impressive handling. Additionally, it boasts the best sound quality among available TVs. It remains competitive in the mid-range market, although aesthetically pleasing screens can be found at similar price points without a soundbar. For those in search of the absolute finest display, alternatives are available.

The Sky OS service has advanced significantly to reach performance levels comparable to the leading competitors in the sector. Live broadcasts work smoothly, whether from satellite or cable. Sky’s on-demand offerings are just as effective as local recordings, while third-party apps like BBC iPlayer and ITVX have reached acceptable performances. Featuring robust search and playlist capabilities that support all major streaming services makes content discovery effortless.

Ultimately, the convenience of the Glass Gen 2, providing an all-in-one solution with solid sound and a unified remote for all TV functions, is a major draw.

Pros: All-in-one streaming and pay TV device, remarkable sound quality, no need for satellite or cable, excellent remote control functionality, robust search and playlist features, improved apps, enhanced display with excellent HDR, customizable image modes, and integrated voice control.

Cons: Image quality not as strong as some competitors, certain image modes need improvement, auto brightness settings can be bothersome, gaming consoles lack faster refresh rates, heavier and bulkier design, no Chromecast support, and some third-party on-demand services remain subpar.

The Power and Microphone Mute buttons are conveniently positioned on the right side of the TV. Photo: Samuel Gibbs/The Guardian

Source: www.theguardian.com

Judge Challenges Apple, Orders It to Ease Control Over the App Store

Posted on May 1, 2025 by Igor Mitreski

A federal judge ruled on Wednesday that Apple must ease its control over the App Store and cease collecting fees for app sales. This decision wraps up a five-year antitrust lawsuit initiated by Epic Games, aimed at redefining Apple’s substantial influence within the digital economy.

Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California criticized Apple for trying to obstruct the previous court ruling and indicated that the company should refrain from appealing further. She specifically condemned Apple CEO Tim Cook and other executives for providing false testimony.

In a prior ruling, Judge Gonzalez Rogers instructed Apple to allow apps to process payments directly, enabling them to provide external links to users and circumvent the 30% fee levied by Apple, potentially resulting in lower costs for consumers.

However, on Wednesday, Judge Gonzalez Rogers asserted that Apple had established a new framework that would mandate external sales apps to pay a 27% commission to the company. Apple also implemented a pop-up notification that warned customers against making payments outside the App Store, suggesting that such transactions might be insecure.

“Apple has attempted to protect billions in revenue by directly opposing this court’s injunction,” Judge Gonzalez Rogers stated.

In response, she indicated that Apple would no longer be able to collect commissions from transactions made outside of the App Store. She also mentioned that she could impose restrictions on developers from creating buttons or links for payments outside the store, and could not issue warnings that deter users from making purchases. Furthermore, Judge Gonzalez Rogers urged federal attorneys to investigate possible criminal actions within the Northern District of California.

This ruling marks a significant shift in the app economy, potentially decreasing costs for Apple while increasing earnings for developers. The App Store, a core element of Apple’s business model, remains a primary venue for downloading mobile games and various applications.

“This opens up opportunities for developers to negotiate better deals, resulting in advantages for consumers as well,” stated Epic CEO Tim Sweeney. “Today is a momentous occasion for everyone involved.”

Apple may contest the ruling. The company has not yet commented, and its stock fell by 1.5% in after-hours trading.

Epic, the developer of Fortnite, filed an antitrust lawsuit against Apple in 2020. Apple was accused of coercing app developers into using its payment system for App Store access, which is the sole channel for distributing apps on iPhones. This policy enabled Apple to garner as much as 30% from numerous transactions.

The App Store contributes significantly to Apple’s annual service revenue, which is nearly $100 billion.

In a ruling two years later, Judge Gonzalez Rogers stopped short of declaring Apple a monopoly in the mobile gaming sector, thus protecting the company from the most severe consequences of the lawsuit. However, she did find that Apple violated California’s unfair competition laws by hindering developers from providing users with alternative payment methods.

Last year, Epic contended that Apple was not adhering to the ruling due to the implementation of new fees and regulations for developers. The judge mandated that Apple submit documentation clarifying the reasoning behind its revised system.

Internal documents from Apple revealed attempts to obstruct alternative payment options while preserving as many of the traditional 30% fees as possible. During a meeting in July 2023, Phil Schiller, who managed the App Store, asserted that Apple would not charge commission, while Apple’s finance chief, Luca Maestri, defended the newly established 27% fee. Reports indicated that Cook supported Maestri’s position.

Cook also instructed that a “fear” notification be displayed, stating that “Apple privacy and security standards do not apply to purchases made via the web” when a user clicks an external payment link.

“Apple clearly understood its actions and consistently chose the most anti-competitive options,” Judge Gonzalez Rogers remarked.

She accused Apple executives of “lying under oath,” further asserting that “Cook made misguided choices.”

Source: www.nytimes.com

Meta Anticipates Continued Growth Despite Tariff Challenges

Posted on May 1, 2025 by Igor Mitreski

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<div data-testid="companionColumn-0"><div class="css-53u6y8"><p class="css-at9mc1 evys1bk0">Meta <a class="css-yywogo" href="https://www.prnewswire.com/news-releases/meta-reports-first-quarter-2025-results-302443250.html" title="" rel="noopener noreferrer" target="_blank">announced</a> on Wednesday that it anticipates significant revenue growth in its advertising sector in the upcoming months, despite the challenges posed by President Trump's tariffs on the global economy.</p><p class="css-at9mc1 evys1bk0">The Silicon Valley giant, owner of Facebook, Instagram, and WhatsApp, also reported an uptick in both revenue and profits for the first quarter, bolstered by advertising on Instagram and Facebook. However, it noted that it is keeping an eye on a "dynamic regulatory environment" that includes legal issues in both the European Union and the United States.</p><p class="css-at9mc1 evys1bk0">Data from market analytics firm Factset revealed that revenues for the first quarter reached $42.3 billion, marking a 16% increase from the previous year, outpacing Wall Street's estimate of $41.3 billion. Profits were reported at $16.6 billion, a 35% boost from last year's $12.4 billion, also exceeding the forecast of $13.6 billion.</p><p class="css-at9mc1 evys1bk0">For the current quarter, Meta anticipates revenues to range between $42.5 billion and $45.5 billion, with the expected figure of $43.8 billion surpassing Wall Street's projections. The company's stock increased by over 5% in after-hours trading.</p></div><aside class="css-ew4tgv" aria-label="companion column"/></div><div data-testid="companionColumn-1"><div class="css-53u6y8"><p class="css-at9mc1 evys1bk0">"We’re off to a strong start in a critical year. Our community is expanding, and our business is performing exceptionally well," stated Mark Zuckerberg, CEO of Meta.</p><p class="css-at9mc1 evys1bk0">Meta's business has shown consistent growth in recent years as it invests in artificial intelligence to provide a diverse array of posts, videos, and advertisements for its users. Zuckerberg indicated that these investments have led to increased engagement with Meta's app and a rise in clicks on relevant ads.</p><p class="css-at9mc1 evys1bk0">Nonetheless, the company faces new hurdles in the Trump era. President Trump's tariffs pose a potential threat to Meta’s significant initiatives, including a multi-billion dollar investment in infrastructure projects such as data centers, which depend on raw materials affected by these tariffs.</p><p class="css-at9mc1 evys1bk0">Meta plans to amplify its spending on infrastructure investments. On Wednesday, it adjusted its capital expenditure forecast for the year upwards from $640 billion to $72 billion, reflecting an increase from $6 billion to $65 billion.</p><p class="css-at9mc1 evys1bk0">Meta confronts critical revenue challenges, as it sells digital advertising to a variety of brands and retailers, both large and small. The more tariffs impact small businesses, the less they may invest in Facebook and Instagram ads.</p></div><aside class="css-ew4tgv" aria-label="companion column"/></div><div data-testid="companionColumn-2"><div class="css-53u6y8"><p class="css-at9mc1 evys1bk0">Trump has imposed the highest tariffs on imports from China, heavily impacting Chinese e-commerce giants like Shein and Tem, which are crucial for Meta's revenue streams. In 2023, Chinese companies constituted 10% of Meta's total revenue.</p><p class="css-at9mc1 evys1bk0">Additionally, Meta is embroiled in an antitrust trial in Washington regarding whether it unlawfully stifled competition in the social networking space by acquiring Instagram and WhatsApp when it was still a startup. The outcome of this multi-week trial, the first significant tech case initiated by the current Trump administration, could reshape the US antitrust landscape and the broader Silicon Valley ecosystem.</p><p class="css-at9mc1 evys1bk0">Last week, the European Union imposed a 200 million euro ($230 million) fine on Meta for violating the Digital Markets Act, a 2022 legislation aimed at fostering competition in the digital economy.</p><p class="css-at9mc1 evys1bk0">Wednesday's revenue figures indicate no immediate fallout from advertising related to the tariffs announced in April, which expire in March. The company’s financial outlook implies that brands may keep investing in Facebook and Instagram advertising.</p><p class="css-at9mc1 evys1bk0">In contrast, advertisers might cut back on ad spending on smaller platforms such as Reddit, Snapchat, and Pinterest, noted Minda Smiley, a senior social media analyst at eMarketer. She expressed uncertainty about future revenue trajectories.</p></div><aside class="css-ew4tgv" aria-label="companion column"/></div><div data-testid="companionColumn-3"><div class="css-53u6y8"><p class="css-at9mc1 evys1bk0">"Current business operations are stable," Smiley remarked. "However, there remains uncertainty about the potential impacts in the upcoming quarter."</p></div><aside class="css-ew4tgv" aria-label="companion column"/></div>

Source: www.nytimes.com

Microsoft Sees 18% Profit Surge Despite Reduced AI Spending

Posted on April 30, 2025 by Igor Mitreski

Following the launch of the ChatGpt Chatbot in 2022, Microsoft has been pouring substantial funds into developing a data center, as highlighted by one industry analyst. Dubbed “Constructing the largest infrastructure ever created by humanity.”

Nevertheless, the company has put the brakes on spending after 10 consecutive quarters marked by increased investment in artificial intelligence, as indicated in the financial results released Wednesday.

In the first quarter of 2025, Microsoft allocated $21.4 billion toward capital expenses, which is over $1 billion less than the previous quarter.

The organization intends to invest more than $80 billion in capital expenditures for the current fiscal year, which concludes in June. However, these pullbacks suggest that, even if marginally, the tech sector’s enthusiasm for AI spending might not be limitless.

Overall, Microsoft’s results showcased unexpected strength in its operations. Revenue surpassed $70 billion, marking a 13% increase from the same period last year. Profits rose by 18% to reach $25.8 billion. These results significantly exceeded Wall Street’s forecasts.

Satya Nadella, CEO of Microsoft, stated, “The cloud and AI are fundamental components for every business aiming to enhance efficiency, lower expenses, and boost growth.”

Following the announcement, Microsoft’s stock surged by over 5% in after-hours trading.

The company is aggressively expanding, and in the last quarter, Microsoft noted that sales would have been even greater if additional data centers were operational to meet the demand for cloud computing and AI services from its clients.

Sales for Azure, Microsoft’s premier cloud service, increased by 33% during the quarter, greatly surpassing Wall Street’s expectations, with nearly half of that growth attributed to AI services.

Investors have experienced fluctuations in infrastructure spending following reports from analysts at TD Securities in late February that Microsoft had exited several data center contracts. Analysts suggested that Microsoft is linked to a project intended to develop advanced AI systems, in collaboration with partner OpenAI. OpenAI is currently planning to partner with Oracle under the Stargate Project.

Microsoft has acknowledged a slowdown in projects in Ohio and Wisconsin, mentioning the suspension of “early stage projects” as part of its Refinement Process.

(The New York Times has filed a lawsuit against OpenAI and Microsoft, claiming copyright infringement related to AI system-generated news content. Both companies have denied the allegations.)

Analysts at Raymond James reported last week that they have not yet noticed significant reductions in spending from Microsoft’s Enterprise Cloud customers. However, they expressed concerns that tariffs and economic uncertainty could prompt customers to cut back on growth initiatives and focus more on maintaining operations.

Microsoft’s personal computing segment grew by 6%, reaching $13.4 billion, while commercial sales of productivity tools for businesses, including Excel, Teams, and Word, increased by 15%.

Microsoft’s results would have shown even greater performance if revenues exceeded $1 billion and profits had not been impacted by over $400 million due to the depreciation of the US dollar.

Source: www.nytimes.com

Google’s Chief Warns That Breakup Proposals Could Be Challenging for Business

Posted on April 30, 2025 by Igor Mitreski

On Wednesday, Google CEO Sundar Pichai addressed a federal judge, stating that the government’s plan to dissolve the company would significantly obstruct its operations as it seeks to implement changes to remedy alleged illegal monopolies in online search.

Judge Amit P. Mehta of the U.S. District Court for the District of Columbia ruled last year that Google had violated laws to sustain its search monopoly. This month, he held a hearing to establish a remedy for addressing these unlawful practices.

As the company’s second witness, Pichai argued against aggressive governmental solutions, including the sale of Google’s widely-used Chrome web browser and mandates to share data with competitors. He expressed concern that such proposals would force the company to scale back on investments in new technologies in order to redistribute profits to rivals with minimal fees.

“No combination of bailouts can replace what we have invested in R&D over the past three decades and our ongoing innovation to enhance Google search,” he stated, referring to research and development.

Pichai is expected to testify throughout a landmark three-week hearing. The tech industry is currently racing to develop internet products powered by artificial intelligence, and new restrictions on Google’s business could energize its competitors and hinder its own progress.

This case against Google marks the first substantial examination of the U.S. government’s efforts to rein in the extensive power held by commercial entities in the online information landscape. Recently, a federal judge in Virginia concluded that Google also holds a monopoly over various online advertising technologies.

The Federal Trade Commission is engaged in a legal battle with Meta, scrutinizing whether the acquisitions of Instagram and WhatsApp unlawfully diminished competition. Additional federal antitrust actions against Apple and Amazon are anticipated in the coming years.

The Justice Department initiated a lawsuit against Google regarding search practices during President Trump’s first term in 2020.

At the 2023 trial, government attorneys contended that Google has effectively highjacked other search engines by compensating companies like Apple, Samsung, and Mozilla to ensure that its search engine appears as the default on browsers and smartphones. Evidence submitted indicated that this amounted to $26.3 billion in payments in 2021.

In August, Judge Mehta expressed opposition towards the company. Last week, he conducted a three-week hearing aimed at determining an appropriate relief strategy.

The Department of Justice’s suggestions are extensive. The government has asserted that Google must divest Chrome since user queries are automatically directed to its search engine.

During approximately 90 minutes of testimony, Pichai emphasized the company’s significant investments in Chrome, citing its effectiveness in safeguarding users against cyber threats. When government attorneys probed whether future browser owners would manage cybersecurity, Pichai responded assertively, drawing on his deep knowledge of the field.

“Based on my extensive expertise and the understanding of other companies’ capabilities regarding web security, I can confidently discuss this,” he noted.

The government also desires that Google provide search result data to its rivals, a move that would grant other search engines access to information about user searches and clicked websites.

Pichai criticized the proposal for mandatory data sharing, suggesting it effectively threatens the company’s intellectual property, enabling others to reverse-engineer its comprehensive technology stack.

In contrast, Google’s proposal is more limited. He stated that the company should be permitted to continue compensating other businesses for search engine placements, with some arrangements open for annual renegotiation. He also emphasized that smartphone manufacturers should have greater autonomy in selecting which Google applications to install on their devices.

Judge Mehta inquired how other search engines might compete with Google.

“We can hardly rely on the notion that ‘the best product wins,'” Pichai later remarked.

Source: www.nytimes.com

Power Outage Sparks Confusion and Reflection on Digital Reliance in Spain

Posted on April 30, 2025 by Igor Mitreski

“It was utter chaos,” remarked Inigo, a physician at a hospital in northern Spain.

Since losing power on Monday afternoon, he noted that emergency generators were reserved for critical areas. This meant a lack of access to patient records, disrupted phone connectivity and email, and colleagues unable to carry out their responsibilities, leading to severe communication breakdowns.

Inigo explained that the hospital’s backup generator was intended to keep surgeries ongoing. However, operations had to be cancelled due to the challenges of safely managing orders and moving patients. “This incident made us realize just how reliant we are on technology,” he said.

On that Monday, about 55 million individuals found themselves thrust back into a pre-electric era as significant blackouts swept through Spain, Portugal, and southern France, marking one of the worst outages in recent European memory. Mobile signals vanished, traffic lights failed, supermarkets fell into darkness, digital payment systems froze, and many found themselves stranded away from home as a prolonged power outage occurred.

Last month, EU residents were advised to prepare with 72 hours’ worth of essential supplies, but this blackout underscored the susceptibility many have to widespread disruptions.

After service was restored, the Guardian spoke with individuals reflecting on the incident and its implications for future preparedness and resilience.

For Inigo, despite the disruption feeling like a “total disaster” at the moment, he appreciated in retrospect that there were no physical injuries. “Moving forward, we should invest in more backup generators and fuel to ensure smoother operations,” he suggested.

Beibei in Barcelona. Photo: Beibei/Guardian Community

Initially, Beibei, 41, in Barcelona, found the power cut to be “very thrilling.” However, concern set in when a neighbor knocked on her door with her four-month-old baby, saying, “I know it’s affecting all of Europe.” “I could see the anxiety on her face,” Beibei shared.

She needed to pick up her six-year-old son from school but had to first find food. “In the dimly lit shop, the cashier was turning away customers who couldn’t pay with cash,” explained Beibei, who is a climate activist and has lived in Spain since the pandemic hit. She collected some essentials but anxiously noticed other shoppers with full carts, fearing she wouldn’t have enough.

On her second trip with her neighbor, she found their nearest supermarket had stopped admitting customers. At another store, Beibei faced an alarming situation. “The cashier unloaded items from my basket when I realized I didn’t have enough cash. Just as the last light went out, she announced, ‘I can’t accept any payments now.’

After reuniting with her sons, Beibei expressed a newfound appreciation for everyday conveniences. “I’ve ensured I have cash ready for next time,” she mentioned.

“This experience has shifted my perspective on what truly matters in life—the nourishment we often take for granted, the presence of loved ones, and the ease of cooking and cleaning with modern appliances. I will never overlook these miracles again.”

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The outage also led to passengers being trapped in underground subway tunnels and trains, compelling many to walk long distances and remain stationary for hours.

Doug Crave, 60, from Brighton, boarded a train in Madrid at 9:57 a.m. to visit a friend in Barcelona. However, before reaching his destination, the train experienced a shudder. With no mobile signal, the doors remained sealed for nearly two hours until authorities finally arrived to open them and distribute bottled water.

Police officers distributing water to passengers caught inside a high-speed train. Photo: Doug Craib/Guardian Community

He recounted that a woman experienced a panic attack lasting about six hours. “It felt stifling and humid in the carriage,” he said. Eventually, police led passengers off the train using flashlights at night, escorting them to Barcelona where they boarded a bus that arrived around midnight.

Passengers disembarking from the train hours later, heading to the bus for transport to Barcelona. Photo: Doug Craib/Guardian Community

Crave noted that the ordeal prompted him to reconsider the increasing reliance on digital transactions, as many were unable to buy food or water during the outage.

“In every conversation I had in Barcelona regarding hotels, taxis, and restaurants, there was a common concern about the increasing trend of going cashless,” he reported. “All payment systems failed, leaving cash as the only option, yet most people were unprepared, and ATMs were non-functional.”

Katarina, a 24-year-old engineer from Porto, was in her office when the power went out. Upon returning home, she filled containers with water in case her pump stopped working. She tuned into updates via a battery-operated radio she bought after the EU’s emergency advice last month.

Katarina in Porto stayed updated on the news using a battery-operated radio and prepared water supplies. Photo: Katarina/Guardian Community

“Nobody had any idea of what to do or where to go or how long it would take,” she recalled.

“On one hand, there’s a lot of discourse about how technology has disconnected us, yet yesterday proved that we remain human. People helped one another, stepped outside, and acted as a community once more.”

With her power still out by 5 p.m. on Monday, Katarina took a stroll with her boyfriend. She observed cars halted due to the absence of traffic lights, orderly bus lines, gardens filled with readers, athletes, and families barbecuing, as well as residents chatting with passersby from their doorways.

“It was quite remarkable,” she said. “It really restored my faith in humanity to witness how quickly people banded together and supported each other despite the chaos around us.”

Source: www.theguardian.com

Skin Deep Review: Kitty Rescue Immersive Sims Bring Slapstick Fun to the Comic Playground

Posted on April 30, 2025 by Igor Mitreski

wImmersive Sims are a unique realm in gaming, often subjected to gamer gatekeeping. From the classic PC title System Shock to the Dickensian world of Dishonored 2, this genre is akin to avant-garde electronica or Darren Aronofsky films—beloved by critics and genre enthusiasts, yet somewhat alienating to the broader audience. Like similar fandoms, the most ardent fans of immersive sims often regard linear blockbusters with disdain. So, sorry Assassin’s Creed players, this is a club you can’t join.

While larger games like Tears of the Kingdom have recently experimented with genre elements, truly accessible, immersive sims are still scarce. Enter Deep Skin by Blendo Games—an attempt to cozy up the genre. With a premise lifted straight from a 2000s web comic, you take on the role of Nina Pasadena, an insurance commando determined to protect a kitty fleet from a pirate siege. Responding to the increasingly urgent distress signals from the anxious Tabby, Nina stealthily approaches the besieged vessel, strategizing to save the feline clientele.

Steal your prey with anything at hand: books and writers? …Deep Skin. Photo: Annapurna Interactive

The narrative is delightfully absurd, but the intriguing mechanics of the collision system deserve recognition. While pilfering supplies with unconventional items, I release a cloud of sanitizers, then knock out a pirate using a hefty novel. Before he can retaliate, I swiftly maneuver away, blending into a shimmering cloud to engulf adversaries in a spectacular explosion. This whimsical, slapstick style truly shines in Deep Skin, presenting a playground that revels in the absurdity of simulation.

However, not all aspects are flawless; Blendo Games introduces its own quirky gameplay twists. Pirates can respawn after being incapacitated, their “skull saber” desperately hovering back to their lifeless bodies. Nina must act quickly to dispose of the screaming heads before they seek revenge. One creative solution involves launching the skulls into space through shattered windows, while flushing the screams down a space toilet—an inventive way to bin each nuisance. The Duper Gun replicas allow players to sneak up on guards and instantly copy items in their possession, whether weapons or keys—vital for those kittens.

A manga-like playground… Deep Skin. Photo: Annapurna Interactive

With fully detailed ship environments, players can exit through airlocks and scale the exteriors, searching for sneaky entry points. In one mission, I crash through an exterior window, landing dramatically and removing a shard of bloody glass from my foot before tossing it into a pirate’s face, channeling my inner cat-loving John McClane.

Blendo Games recognizes that the finest immersive Sims often function as whimsical playgrounds. Every element feels like a sandbox, a tool for mischief. From tossing a pepper at a guard to watch him sneeze uncontrollably, to riding on a pirate’s back and charging into a wall, the delightful chaos of Deep Skin truly embraces its playful nature.

Unfortunately, I hoped for a more serious narrative tone. The liberated cube cat bursts from its cage with sparkling flair, prompting me to respond to Paw-Penned’s request for an elusive VHS tape. Although the humor of Skin Deep may appeal to some, the incessant cat puns and overly zany tone became exhausting, eliciting more grimaces than laughs.

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If the cat-centric concept appeals, be mindful that Skin Deep utilizes Doom 3’s 2004 ID Tech Engine. Picture your nostalgic PC classic’s dimly lit corridors replaced with vibrant colors. Aimed deliberately at hardcore gamers, it sounds great on paper, but the outdated aesthetic doesn’t quite deliver the intended retro-chic vibe, often appearing quite primitive.

Nevertheless, if you’re a fan of quirky experiences, this colorful and refreshing entry into a notoriously challenging genre is worth your time. Ultimately, it offers a unique simulator filled with slapstick humor, although it may not cater to seasoned genre aficionados or entice complete newcomers. Perhaps not a breakthrough title, but if you can appreciate the whimsy of Deep Skin, you may find 10 hours of futuristic cat-themed fun ahead.

Source: www.theguardian.com

Amazon Challenges Musk’s Starlink with Launch of First Internet Satellite

Posted on April 30, 2025 by Igor Mitreski

Amazon’s Kuiper Broadband Internet Constellation successfully launched its first 27 satellites into space from Florida on Monday, marking the beginning of a significant rollout of space-based internet networks, comparable to SpaceX’s Starlink.

These satellites are the initial part of a larger plan to deploy 3,236 at low Earth orbit as part of Project Kuiper. Launched in 2019, this billion-dollar initiative aims to deliver beam broadband internet globally to consumers, businesses, and government entities. SpaceX has been a notable client in this competitive landscape due to its robust Starlink operations.

Launched aboard the Atlas V rockets from Boeing and Lockheed Martin’s Joint United Launch Alliance, the batch of 27 satellites lifted off at 7 PM EDT from Cape Canaveral Space Force Station. The initial launch attempt on April 9th was postponed due to bad weather.

Project Kuiper represents Amazon’s largest venture into the broadband sector, entering the fray against Starlink and established telecom providers like AT&T and T-Mobile. The company aims to enhance connectivity in rural areas where access is limited or absent.

The deployment of the first operational satellite faced delays exceeding a year, with Amazon initially targeting early 2024 for its first batch. The Federal Communications Commission has set a deadline for Amazon to launch 1,618 satellites by mid-2026, prompting the company to likely seek an extension.

Following the launch, Amazon anticipates publicly confirming initial contact with the satellites from its Mission Operations Center in Redmond, Washington, within hours or days. If successful, the company expects to commence customer service later this year.

According to ULA CEO Tory Bruno, five more Kuiper missions can be launched this year. Amazon indicated in its 2020 FCC filing that it could start service with some of its 578 satellites in the northern and southern regions, gradually extending towards the equator as more satellites are deployed.

As an ambitious initiative in a market primarily dominated by SpaceX, Project Kuiper reflects Amazon’s extensive experience in consumer products and established cloud computing services, positioning itself as a competitor to Starlink.

In 2023, Amazon successfully launched two prototype satellites, paving the way for further developments. The program had maintained a lower profile until unveiling its initial Kuiper launch plans earlier this month.

SpaceX enjoys a unique advantage, serving as both a satellite operator and launch provider with its reusable Falcon 9 rockets, having placed over 8,000 Starlink satellites into orbit since 2019. Monday marked the 250th dedicated Starlink launch, with a rapid deployment schedule of at least one mission per week to enhance network bandwidth and replace outdated satellites.

This accelerated pace has led to SpaceX acquiring over 5 million internet users across 125 countries, boosting the global satellite communications market while supporting military and intelligence operations through Starlink’s advanced capabilities.

Amazon’s executive chair, Jeff Bezos, expressed optimism regarding Kuiper’s competitive potential against Starlink, noting to Reuters in a January interview that there is “an insatiable demand.”

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“There’s a lot of room for winners there. Starlink expects it will continue to succeed, and Kuiper expects it will succeed,” Bezos stated.

“It will be primarily a commercial system, but these LEO constellations have defensive applications as well,” he added, referring to low Earth orbit.

In 2023, Amazon unveiled the Kuiper Consumer terminal, a compact antenna the size of an LP record that connects with overhead Kuiper satellites, along with a small terminal comparable to Kindle e-readers. The company aims to produce devices for tens of millions of users, each costing less than $400.

In 2022, Amazon secured 83 rocket launches from French Arianespace and Blue Origin ULA.

Source: www.theguardian.com

Piers Morgan Cautions That YouTube’s Growth Signals a “Wake-Up Call” for Traditional Media

Posted on April 30, 2025 by Igor Mitreski

The media landscape is experiencing a significant transformation, with numerous traditional publications fading away, while various YouTube channels assert their influence rivals that of conventional television networks.

A former newspaper editor and current presenter, engaged in fundraising efforts to expand his YouTube venture, anticipates that more prominent media figures will migrate to this increasingly impactful streaming platform as viewer preferences continue to evolve.

“It’s similar to the shift from vinyl to digital music,” he noted. “People believed it would take ages, but the change happened swiftly.”

“In the UK, specific newspapers are disappearing. Which will still have a print edition in a decade? Observing younger demographics shows that those under 45 rarely purchase print newspapers.”

Morgan holds the rights to his YouTube channel, *Piers Morgan Uncensored*, having acquired them from the Rupert Murdoch empire after his previous agreements with News UK, which totaled £50 million over three years, ended. Now over 60, he acknowledges that his transition is a “learning curve,” yet he champions YouTube for its flexibility and low cost.

He emphasized that his decision to fully embrace the streaming service was influenced by his four children. “All of them are watching YouTube,” he remarked. “I rarely watch traditional TV, aside from live sports. Until last year, I was part of the outdated, structured 8PM live news format.”

While Morgan is known for his sharp commentary, his shift to YouTube reflects a broader trend where media personalities, especially within the U.S. conservative landscape, amass millions of subscribers. Morgan aims to replicate the success of DailyWire, a conservative American media outlet co-founded by commentator Ben Shapiro, which includes Canadian psychologist Jordan Peterson.

YouTube wields significant influence in the media sphere, with various content originating from networks like ITV and Channel 4. Podcasters continue to enhance their presence, contributing considerable financial strength. In just the first quarter of 2025, YouTube’s ad revenue exceeded $8.9 billion (£6.644 billion), marking a growth of over 10% from the previous year. Meanwhile, Channel 4’s total revenue for all of 2023 hovered around £1 billion, a figure available for the most recent year.

Morgan cited last year’s U.S. election, mentioning that YouTube reported over 45 million views on election-related content on Election Day. In contrast, 42.3 million viewers tuned into 18 cable and broadcast networks that night. Although the figures aren’t directly comparable, Morgan stated:

“Prominent journalists have reached out to me, inquiring about a shift to my platform. I believe legacy media companies need to analyze why individuals like myself are venturing out into this realm,” he said. “More will be inspired to follow my lead, and I’m receiving intriguing inquiries from journalists.”

Morgan plans to emulate Gary Lineker’s Goalhanger Productions, which has produced successful podcasts in the UK. He envisions creating channels under uncensored brands that cover various genres, including true crime, history, and sports, with a direct focus on the U.S. and global audiences rather than just the UK.

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“Look at what Gary Lineker achieved; he’s a close friend and with Goalhanger in the UK, he’s the first to credit his success. [podcast for Goalhanger] In terms of revenue, it’s substantial in America, but that’s just the beginning,” he stated. “It’s not solely about football; it’s about history. They travel to America and stage large live shows, which is massively successful there.”

“I seldom cover British news. We didn’t even discuss the final election results because my scope is broader: ‘Is this of interest to viewers in the Middle East? What about in Australia?’

Morgan shared his vision of decreasing reliance on his brand, aspiring to build something sustainable and independent. Though he considers it an “early era,” he is optimistic about attracting investors, as his venture is already profitable.

“We don’t require funding,” he stated. “With nearly 4 million subscribers, my inquiry to investors isn’t, ‘Just give me your money.’ It’s ‘What value do you bring to the table?’ ”

Source: www.theguardian.com

What to Do If Your Wireless Headphones are Lost or Stolen: Helpful Tips

Posted on April 30, 2025 by Igor Mitreski

Headphones are common accessories for many people, but they have also become a prime target for thieves. Whether they’re snatched from your head or taken from your bag, here’s how to handle it.

What to Do If Your Headphones Are Stolen?

Check the headphone management app on your phone. Many have features that show where the headphones were last connected, allowing you to track them down.
Be sure to check Bluetooth models like Apple’s AirPods, Samsung’s Galaxy Buds, and Google’s Pixel Buds. They often have a “find my device” option, in case someone finds them.
Report the theft to the police using the non-emergency number 101, providing details such as make, model, color, and serial number.
Reach out to your insurance company to find out if your headphones are covered under any policy.

What to Do As Soon As You Get a New Pair

Getting replacements or new headphones can alleviate concerns about future theft or loss.

Install a headphone management app on your phone and enable location tracking.
Add your headphones to the “find my” feature on Apple or Google if they’re compatible.
Consider using Bluetooth trackers like Apple’s AirTag, Tile, or Samsung SmartTag with your headphones or their case.
Note down your headphones’ make, model, and serial number, keeping this information safe along with your proof of purchase.
Think about having your headphones engraved with your name; this option is often available at the time of purchase.
Explore where to wear your headphones and utilize noise-cancelling features that might help you notice if a thief tries to take them while you’re using them.

Source: www.theguardian.com

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What to Do If Your Headphones Are Stolen?

What to Do As Soon As You Get a New Pair