Tag Archives: contract

Why a Major Saudi-Led Contract Matters for EA, Regardless of Your Gaming Involvement

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when Microsoft revealed plans to acquire Activision-Blizzard in 2022 for over $68 billion, the industry was stunned. This announcement echoed the recent significant shifts in the sector: prominent publishers known for iconic sports titles like Madden and EA Sports FC (formerly FIFA) have opted for a private acquisition often dubbed “the largest leveraged buyout in history.” This $55 billion deal is backed by a trio of investors resembling a final boss lineup on paper.

Introducing Player 1: Saudi Arabia’s Sovereign Wealth Fund. The Saudi royal family has made substantial investments in gaming over the years and leads an astute gaming group headed by Crown Prince Mohammed bin Salman, known for his controversial record with domestic issues and the assassination of journalist Jamal Khashoggi. Player 2: Affinity Partners, an investment firm led by Jared Kushner, the son-in-law of the current U.S. president. Player 3: Silver Lake, a notorious private equity firm, which owns a significant stake in game engine developer Unity. Stephen Totilo from Game File refers to the Affinity Partners logo as a mirror image, reminiscent of the Evil Corporation in the Assassin’s Creed series. It feels almost surreal.

You might be curious about Saudi Arabia’s extensive investment in gaming. They have heavily funded eSports and even launched the ESports World Cup in Riyadh. They’ve acquired the manufacturer of Monopoly GO and purchased shares in numerous gaming companies, including Pokémon GO and Nintendo. (Game file provides a thorough overview of Saudi capital in the gaming industry.) The motivation behind these investments parallels their funding of sports, media, and lately, comedy. It serves as a strategy for whitewashing perspectives, or in this instance, game-washing, showcasing the cultural clout of video games.

Mohammed bin Salman. Photo: Royal Saudi Court/Reuters

Regarding Affinity Partners and Silver Lake: There’s potential for profit. EA reported over $2 billion in profit last fiscal year, primarily from sports franchises. EA also owns The Sims and Battlefield, two franchises that could yield significant returns. Previously, EA was a more diversified publisher, with a rich portfolio including Dragon Age and Titanfall. However, under current CEO Andrew Wilson, their focus has shifted mainly to the most lucrative sports franchises.

Critics of this acquisition often highlight Saudi Arabia’s involvement. Thousands of developers and millions of gamers within EA feel unsettled (especially since The Sims has a significant LGBTQ+ following). Opinions among business journalists and analysts vary. Kotaku’s Ethan Gach discussed with several of them in this article. One notable quote from NYU’s Joost Van Dreunen states, “The center exhibits an irrational financial logic concerning power, fame, and the implications of Saudi Arabia’s role in American entertainment.”

Business analysts pointed out that the acquisition places EA under a staggering $20 billion in debt, as reported by Bloomberg. Questions arise about how the new EA ownership intends to manage this debt. Will there be more layoffs or budget cuts? Will they reduce profits from popular features like Ultimate Team Mode in EA Sports FC? Or might they abandon the flagging mobile gaming sector? For both players and EA employees, returning to normal business operations seems uncertain.

Electronic Arts is not the industry’s favorite publisher, and it doesn’t have the best reputation. However, it’s vital to remember the thousands of dedicated employees behind the scenes. Despite EA’s business practices that may frustrate gamers, it’s essential to consider the talents and projects of these people across the gaming industry. Even without oppressive ownership, such private equity takeovers often harm both employee morale and the industry’s overall health. Fans of FIFA, for instance, might reflect on the financial struggles of clubs like Manchester United post-acquisition, plagued by immense debt.

Nonetheless, one individual relishing this deal is CEO Andrew Wilson. “This moment embodies your creativity, innovation, and passion. Everything we’ve accomplished, and everything ahead, is for you,” he proclaimed in a public statement. “Our values and commitment to players and fans globally remain unchanged. We will maintain operational excellence and rigor, enabling team creativity, accelerating innovation, and pursuing transformative opportunities to secure EA’s leadership in the future of entertainment.”

Interestingly, Wilson holds tens of millions of EA shares, currently valued at £157 should the acquisition go through. Doesn’t that warm even the most cynical of hearts?

What to play

Yotei’s ghost. Photo: Undefined/Sony/Soccer Punch

It’s fascinating that two stunning, highly-priced historical fiction games set in Japan have launched within just six months of each other. Yet, here we are.

The Ghost of Yotei releases tomorrow, featuring a female warrior on a quest for revenge across the most breathtaking landscapes ever created in gaming, echoing the essence of Assassin’s Creed. I enjoyed Shadows earlier this year; its beauty and performance are undeniable. However, I find Yotei even more enthralling. It’s far more engaging without reliance on maps or magical visions for locating enemies, instead compelling players to follow the sounds of birds, foxes, and those in need. The minimalistic mechanics, like igniting campfires or crafting sumi-e art, delight. Combat feels exhilarating, embodying an old-school vibe similar to Soul Calibur during duels. I’m pleasantly surprised by how much I appreciate this game, considering Ghost of Tsushima felt less fresh five years ago. Our protagonist, Atsu, seems far less tormented than Ghost of Tsushima’s protagonist, Jin.

Available on: PlayStation 5
Estimated playtime: Over 30 hours

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What to read

Promotional images from bullies. Photo: Rockstar Game

  • IGN Interview with Rockstar co-founder Dan Hauser, who recently appeared at LA Comic Con. He’s known for being elusive and shared that his favorite title is Red Dead Redemption 2, also expressing regret over not following through on the boarding school satire.

  • Insomniac Games’ Wolverine has finally revealed its gameplay trailer. Given how well Spider-Man was adapted, I’m optimistic about this release slated for next year. As a fan of Housemarque’s thrilling sci-fi title Returnal, I eagerly watched the follow-up footage for Saros, set for a March 2026 launch.

  • Rog Xbox Ally is a poorly named yet highly anticipated handheld Xbox-compatible device priced at £500/£800. Microsoft has confirmed it, placing it in competition with the Steam Deck.

  • In Nintendo news, US President Doug Bowser has announced his impending retirement. He will be succeeded by Devon Pritchard, who has served at Nintendo for 19 years. Rumor has it that she may change her name to Devonganon. Moreover, there’s an upcoming pop-up store of Japanese department stores set to open in London later this month, with fans gaining access in March.

What to click

Question block

Astro Playroom. Photo: Sony

This week, reader Kevin asks:

“At age 68, I’ve developed an interest in gaming. I purchased a PS5 Pro and am currently waiting for its arrival. Could you provide a guide on how to use the controller?”

Welcome to the world of gaming, Kevin! It’s fantastic to hear someone is taking the plunge into gaming, especially if it involves pressing buttons!

For mastering the PS5 controller, I highly recommend Astro’s Playroom. It’s a delightful and engaging experience featuring small robots living within PlayStation. This short yet enjoyable game serves as an excellent tutorial for the unique functionalities of the PS5 controller and has even assisted my two sons in navigating more complex controls. If you find it enjoyable, be sure to check out the full-length sequel, expected to be a contender for Game of the Year in 2024.

If you have a question for the “Question Block” or any comments about the newsletter, feel free to reply or reach out to us at butingbuttons@theguardian.com.

Source: www.theguardian.com

Google Inc. Secures $3 Billion US Hydroelectric Contract to Power Energy-Intensive Data Centers

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Google has committed to securing up to 3GW of hydropower in what is being termed the largest clean power agreement by a corporation, as the tech giant seeks to expand its energy-intensive data centers, the company announced on Tuesday.

The agreement with Brookfield Asset Management includes a 20-year power purchase deal worth $3 billion for electricity generated from two hydroelectric plants located in Pennsylvania.

Additionally, the tech giant will invest $25 billion into data centers across Pennsylvania and neighboring states over the next two years, according to Semafor’s report on Tuesday.

The technology sector is increasingly seeking vast amounts of clean energy to support the power demands of data centers essential for artificial intelligence and cloud computing.

Ruth Porat, president and chief investment officer of Google’s parent company Alphabet, spoke about the initiative at the AI Summit in Pittsburgh, where Donald Trump announced a $70 billion investment in AI and energy.

Amanda Peterson Corio, head of Datacenter Energy at Google, commented on the collaboration with Brookfield, stating, “This partnership is a crucial step towards ensuring a clean energy supply in the PJM region where we operate.”

Almost a year ago, Google initiated several unique power purchase agreements involving carbon-free geothermal energy and advanced nuclear options. The company is also collaborating with PJM Interconnect, the largest power grid operator in the U.S., to expedite the integration of new power sources using AI technology.

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Google has entered into an initial framework agreement with Brookfield, the owner of Brookfield Renewable Partners, stating its intent to develop and operate a renewable energy facility. The two hydroelectric plants in Pennsylvania will undergo upgrades and refurbishment as part of this agreement. Furthermore, Google intends to expand its commitment beyond these facilities to other regions within the Mid-Atlantic and Midwest.

Source: www.theguardian.com

Xai Secures $200 Million US Military Contract Following Grok Chatbot Controversy

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Following the identification of Grok Chatbot as “Mechahitler” and its generation of anti-Semitic content, Elon Musk’s company, Xai, announced a contract worth $200 million with the US Department of Defense. This contract focuses on the development and deployment of artificial intelligence tools for agents.

Additionally, the DOD announced a ceiling of $200 million and similar contracts on Monday with several other prominent AI developers, including Google, Anthropic, and OpenAI. The agency collaborates with the General Services Bureau to make these AI tools accessible to the federal government.

“Incorporating off-the-shelf solutions into a cohesive functional approach will enhance the use of intelligence, business, and enterprise information systems as part of the Warfighting domain’s essential tasks.”


This agreement enhances ties with US military AI developers and is expected to broaden the application of artificial intelligence within the US government. This follows Musk’s so-called “Government Efficiency Office” (DOGE), which has been scrutinized for its oversight in various federal agencies. Until recently, Musk was considered the unofficial leader of DOGE, particularly as he navigated challenges posed by government entities. For more department inquiries, utilize the GROK chatbot.

The announcement of the Xai contract comes on the heels of Grok’s series of controversial posts on X last week, including the endorsement of Nazi ideology and disturbing themes, leading the company to issue a public apology. Xai asserted that the issue was addressed and subsequently launched a new AI model, offering an advanced version of the tool for a $300 monthly subscription.

The DOD contract is set to boost revenue as Xai strives to compete with more established AI firms such as OpenAI, led by Musk’s former ally, Sam Altman. Musk aims to significantly elevate Xai’s profile while leveraging other ventures within his tech empire for its growth. SpaceX’s investment in Xai totals $2 billion, providing a launchpad for startups to leverage X, formerly known as Twitter. Tesla shareholders have a stake in Xai as well.

Xai introduced the “Grok for Government” initiative in a blog post on Monday, detailing plans to develop AI-powered applications for potential use in healthcare, national security, and other public services, in addition to existing products.

“Under the Grok umbrella for government, we provide top-tier AI tools to federal, state, local, and national security clients,” Xai stated in its website announcement. “These clients can expedite American progress with Grok family products, enhancing the efficiency of daily government services and utilizing AI to tackle longstanding challenges in basic science and technology.”

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Musk has frequently voiced concerns that AI chatbots are designed to disseminate “woke” ideologies, while Grok products have promised to “pursue the fullest truth.” The platform has faced repeated controversies for spreading conspiracy theories and falsehoods, including claims of purported “white genocide” in South Africa, a narrative that Musk himself has echoed earlier this year – Echos claims purportedly made by Musk.

Ethics watchdogs, democratic lawmakers, and privacy advocates have raised alarms regarding Musk’s and DOGE’s handling of AI within government settings and the access to sensitive information while integrated with government agencies. Staff at DOGE had previously facilitated the transfer of government data to tailored iterations of Grok’s chatbots, raising concerns over potential breaches of privacy and security legislation. Reuters reported in May.

Source: www.theguardian.com

OpenAI Secures $200 Million Contract with US Military for “Warfighting” Initiatives

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On Monday, the US Department of Defense awarded OpenAI a contract worth $200 million to implement artificial intelligence (AI) solutions for military use.

The San Francisco-based firm is tasked with “developing prototype frontier AI capabilities to tackle critical national security challenges in both combat and enterprise areas,” as outlined in the Department of Defense award agreement.

As stated by OpenAI, this program marks the company’s inaugural partnership under a startup initiative aimed at integrating AI within government functions. In a blog entry, the organization intends to demonstrate how advanced AI can significantly enhance various administrative tasks, such as healthcare for service members and cyber defense.

The startup assures that all military applications of AI are in accordance with usage guidelines established by OpenAI.

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The major tech company is, predictably, promoting its tools to the US military alongside Palantir, an AI defense firm established by Peter Thiel, a conservative tech billionaire influential in Silicon Valley’s rightward shift.

OpenAI and defense tech startup Anduril Industries announced a collaboration late last year to create and implement AI solutions “for security missions.” This partnership merges OpenAI’s models with Anduril’s military technologies to bolster defenses against drones and other “unmanned aerial vehicle systems.”

“OpenAI develops AI with the aim of benefiting as many individuals as possible and endorses US-led initiatives to ensure technology upholds democratic values,” stated Sam Altman, CEO of OpenAI.

Source: www.theguardian.com

Openai secures record-breaking $400 billion contract with SoftBank

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Openai announced a $400 billion funding round that valued ChatGpt makers at $300 million. Partnering with SoftBank, Openai aims to push the boundaries of AI research towards AGI (artificial general information) with significant computing power.

SoftBank believes in achieving “artificial super intelligence” (ASI) surpassing human intelligence, praising Openai as the best partner to reach this goal. SoftBank plans to invest $10 billion initially and $300 billion by 2025, subject to meeting certain conditions.

Facing competition from Deepseek and Meta in the open source AI space, Openai announced plans to develop a more open, generative AI model. Additionally, Openai is expanding its user base rapidly with the latest image generation features in ChatGpt.


Openai, led by CEO Sam Altman, previously favored a closed model for AI development. However, with evolving priorities, Openai is now embracing open source to allow developers more flexibility in adapting AI technologies.

Critics of closed AI models, like Google, argue that open models pose higher risks and are more susceptible to misuse. Former Openai investor Elon Musk urges Openai to prioritize open source safety.

Companies and governments prefer AI models they can control for data security reasons. Meta and Deepseek offer customizable models, enabling users to download and modify them to suit their needs.

Commenting on the success of new features in ChatGpt, Altman mentioned a surge in users overwhelming Openai’s resources. This advancement underscores the growing interest and demand for AI advancements.

Agence France-Presse

Source: www.theguardian.com

After securing the meta contract, Arm unveils its own chip launch

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The UK semiconductor designer ARM reportedly plans to launch its own chip this year after landing Meta as one of its first customers.

The move represents a massive overhaul of the SoftBank-owned group’s business model, licensing chip blueprints to Apple and Nvidia.

ARM CEO Rene Haas is set to announce its first in-house chip as early as this summer, according to a Financial Times report citing people familiar with the plan.

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Since the company was founded in 1990, more than 300 million chips have been shipped based on ARM design, and almost all world smartphones are based on ARM technology. Moving from chip design to manufacturing a full, proprietary processor could also compete with the largest customers in the £500 million semiconductor industry.

ARM declined to comment. The company’s shares rose more than 6% on Thursday after finance reported its plans.

Financial Times also has its own intellectual property by creating a vast infrastructure network for AI, which has shifted to the production of AI chips by the son of SoftBank founder Masayoshi, and building a vast infrastructure network for artificial intelligence. It reported that it is one step in a big plan to make more money from.


Masayoshi Son, CEO of Softbank Group. Photo: Mitsui/Aflo/Rex/Shutterstock

Last month, Son announced its Stargate initiative at Openai. It spends an estimated £400 million building AI infrastructure, funded by Abu Dhabi State Fund MGX and Oracle, and is armed as a major technology partner alongside Microsoft and Nvidia.

According to those familiar with the plan, ARM’s chips are the central processing units (CPUs) of servers in large data centers and are expected to be customizable for clients, including Meta. These people said production will be outsourced to manufacturers such as Taiwan Semiconductor Manufacturing Co.

Another transaction essential to ARM’s chipmaking project is SoftBank’s anticipated acquisition of Ampere. It could be valued at nearly $6.5 billion (£5.155 billion).

Cambridge Headquarted Arm has more than doubled to $173 million since it was listed on the Nasdaq in 2023. Before SoftBank took over it in 2016, ARM was previously listed in London.

Meta is the latest big tech company that looks to ARM for power-efficient server chips instead of Intel and AMD. Meanwhile, ARM’s Nvidia partnership with Amazon has driven the rapid growth of data centers that power Openai, Meta, and human AI assistants.

Source: www.theguardian.com

Spyware used in WhatsApp breach leads to end of contract with owner

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Reports suggest that 90 individuals, including journalists and members of civil society, have been targeted by those familiar with the issue.

The termination of the contract came soon after WhatsApp revealed that Paragon’s spyware was used to target multiple individuals. Paragon, like other spyware vendors, sells cyber weapons to government clients for crime prevention purposes. The entities behind the alleged attacks on certain government clients remain unknown.

The decision to end the Italian contract was prompted by the discovery that two activists critical of Italian investigative journalist and dealings with Libya were among those targeted. All three were vocal opponents of Italian Prime Minister Giorgia Meloni’s right-wing government.

Meloni’s office denied any involvement in the alleged violations after accusations surfaced, stating that neither the national intelligence reporting agency nor the government was responsible.

Anonymous sources speaking to The Guardian revealed that Paragon initially faced scrutiny when the allegations of spyware abuse emerged. The Italian contract was temporarily suspended, and later terminated for violating the terms of service and ethical framework agreed upon.

A request for comment from an Italian government spokesman was made by The Guardian. Meloni is expected to address the alleged violations in Congress, and WhatsApp reported that approximately seven Italians were affected.

In response to inquiries, a Paragon representative declined to confirm or deny developments, citing company policy not to discuss matters related to potential clients.

Francesco Cancello, editor-in-chief of investigative news outlet FanPage, was informed that his phone was targeted using hacking software. The Graphite Spyware, similar to Pegasus, can infect phones without user interaction, possibly compromising devices.

WhatsApp detected the hacking attempts with the help of the University of Toronto’s Civic Research Institute. There is uncertainty about ongoing monitoring by government clients and the extent of involvement in each case.

The motive behind Cancello’s targeting remains unclear, but previous investigations by the publication may have played a role. Paragon’s move may allay some concerns, but unanswered questions remain about other cases uncovered by WhatsApp.

Paragon, recently acquired by US company AE Industry Partners, specializes in national security markets. The company has not responded to requests for comment about the acquisition.

Paragon previously secured a contract with ICE, the US immigration and customs enforcement agency, under the Biden administration. The contract’s compliance with regulations restricting spyware use by the federal government is unclear, as it was reportedly suspended.

Source: www.theguardian.com

Don Lemon files lawsuit against Elon Musk and X for breach of talk show contract termination

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Don Lemon, former CNN anchor, has filed a lawsuit against Elon Musk and Company X for breaching a contract with the now-formerly known Twitter social media platform.

The lawsuit, filed in California Superior Court in San Francisco, alleges fraud, negligent misrepresentation, misappropriation of name and likeness, and breach of contract.

Shortly after filming an interview with Musk, Lemon received a text ending their partnership which led to the abrupt termination.

Don Lemon’s lawyer, Carney Shegerian, stated the executives at Company X used Lemon for their advantage and then tarnished his name.

When contacted for comment, Company X responded with an automated message of being busy.

Lemon, once a prominent CNN figure, was let go due to conflicts and poor reviews as a morning show host. He was fired in April 2023.

Linda Yaccarino, CEO of Company X, initially reached out to Lemon’s agent to propose a new show after his CNN departure. The platform aimed to become a video-centric platform.

Lemon’s first scheduled episode on the platform, an interview with Musk, turned tense as Lemon questioned Musk on various topics, leading to the show’s cancellation over creative differences.

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Musk’s increasing conservatism and Lemon’s conflict with the platform’s content direction resulted in the show’s cancellation. Musk’s efforts to attract talent ended with limited success.

The platform’s shift to video content and creator outreach faced challenges with extremism and content moderation issues leading to advertisers pulling out.

Source: www.theguardian.com