Social Networks

Social Media Limits Are Coming For Teens Across Europe 59

The European Union is considering major new restrictions on children's access to social media, including age limits, phased access, and an outright ban. "This is not about whether children can access social media," said European Commission President Ursula von der Leyen. "It is about when social media can access our children." The Verge reports: Social media platforms could also be forced to prove their services are not harmful before young people are allowed to use them. European Commission President Ursula von der Leyen said the bloc's executive arm could propose new legislation within months, after reviewing recommendations from a panel of experts released today.

The panel recommended using a phased approach, including "no screens at all" for children under 3, supervised internet use for those under 13, and some limits for older teens. It also said social media platforms should have to prove their services are safe to younger users, an approach von der Leyen said she supports. Von der Leyen said the Commission will consider the report and return with proposals "after the summer." Any legislation would still need approval from the European Parliament and the EU's 27 member countries before becoming law across the bloc.
AI

China, Russia and Others Seek To Inflame Debate Over AI Data Centers (nytimes.com) 87

An anonymous reader quotes a report from The New York Times: A state-owned newspaper in China recently published a satellite image of a data center in Gainesville, Va., writing in English that the development of artificial intelligence posed a threat to Americans' physical and financial well-being. A comic strip made to look as if it had been published by a Maryland news outlet -- created with OpenAI's ChatGPT by people in China, the tech company said -- circulated on X this year, blaming data centers for soaring electricity bills. It showed a tycoon smoking a cigar and clutching bags of cash. A video shared on X by a known covert Russian influence operation questioned the viability of a data center that an American company, Firebird, is constructing in Armenia, the small Caucasus nation that has been a focus of Kremlin pressure. "The country's electrical grid instability may render it useless," the video's narrator says.

All are examples of a push by foreign adversaries to seize on what polls have shown is deep ambivalence -- verging at times on hostility -- about the spread of the data centers needed to power A.I. in the United States and elsewhere. China, Russia and, to a lesser extent, Iran have sought to use state media outlets to turn the controversy over data centers in the United States into "a domestic fracture point," according to a new analysis by Alethea, a threat intelligence company, which identified scores of articles and posts on social media this year. These campaigns, whose impact on public opinion remains to be seen, have raised alarms in Washington, where A.I. is seen as a top issue heading into this year's midterm elections.

Stats

America May Soon Be Facing Largest Labor Shortage in Its History (msn.com) 249

America "is facing what's projected to become the largest labor shortage in its history," according to experts interviewed by the Washington Post: Economists warn that the worsening labor problem, due in part to a skills shortage and population shifts, will be vast and reach beyond tech. It "could hobble the American economy for years to come," predicts the Georgetown University Center on Education and the Workforce. Lightcast, a labor market data company, calls it "the largest labor shortage the country has ever seen." JPMorgan Chase warns of a national security risk from "a pervasive talent deficit that constrains the nation's capacity to build, compete, and protect its interests." There will be shortages in the tens or even hundreds of thousands of nurses, physicians, teachers, engineers, pharmacists, mental health counselors, construction worker and airplane mechanics — jobs AI generally can't do...

Among the trends that have been leading to this moment: a mismatch between the careers college graduates are pursuing and the jobs employers are struggling to fill. Far fewer students are majoring in health care fields than are needed to meet demand, for instance. "We have pumped so many young people into business and finance" when what's really in demand are graduates in other fields, [said Ron Hetrick, Lightcast's principal economist]. "It's like a factory producing these workers like widgets, even though society is saying, 'We really don't need them.' And the factory just keeps pumping them out." But the principal reason for the looming workforce shortages is much more basic. A protracted decline in birth rates is coinciding with a record wave of retirements, data shows.

From 2024 to 2032, when the last baby boomers sign up for Social Security payments, more than 18 million college-educated workers will leave the labor force while fewer than 14 million enter it, according to the Georgetown center. Meanwhile, even as the number of people with associate and bachelor's degrees falls, the number of jobs requiring them will grow, the center forecasts. That will leave a gap of 4.6 million workers. Lightcast puts the deficit at an even higher 6 million... The effect of population shifts on the supply of talent, with or without degrees, has been compounded by a drop in the proportion of high school graduates choosing to go to college, a sharply reduced rate of immigration, and a growing number of Americans leaving the workforce altogether because of such issues as lack of child care, early retirement, incarceration and substance addiction, according to the Chamber of Commerce.

Three interesting statistics from the article:
  • U.S. college/university enrollment in 2023 was down by nearly 2 million students since its peak in 2010, according to the most recent data from the U.S. Education Department.
  • America's low birth rate since 2010 "means the number of college-age Americans is forecast to decline by another 13 percent through 2041."
  • South Dakota has just 41 workers for every 100 open jobs... while California and nine other states have more workers than jobs, the Chamber of Commerce found.

Stats

'Billionaire Exodus? California Drew 10x More Venture Capital Than Any Other State This Year' (yahoo.com) 105

California drew more than $335 billion in venture capital funding this year, reports the Los Angeles Times, citing data released Thursday by PitchBook on private market funding: Its next biggest competitor, New York, raised less than a tenth of California's total. Texas raised 1/40th of the amount... Although a campaign for a new tax on billionaires has convinced some ultra-rich residents to shift to other states and businesses often complain that high property and energy costs and an anti-business regulatory regime make it too tough to make money in the state, the inability of the top talent, companies and investors in AI to set up elsewhere shows California's enduring attraction.

The state's economy grew 5% last year to a record $4.25 trillion, making it larger than every country other than the U.S., China and Germany. It is home to nearly 400 billion-dollar startups — more than any other state, according to CB Insights... Among metropolitan regions, Los Angeles ranked behind only Silicon Valley and New York, which attracted $98 billion and $11.5 billion in venture investment, respectively... Investors poured in nearly $8 billion across 207 deals in the Los Angeles, Long Beach, and Santa Ana metro areas, up 28% from a year earlier, according to PitchBook...

Nearly 90% of invested dollars [in California] went to AI firms, up from last year, when around 65% of new funds were allocated to AI. "If you're a tech company and you're not an AI company, you have a very, very difficult opportunity ahead of you to raise capital," Stanford said.

AI

'Forget Coders. The Real AI Threat Is In the Back Office' (thestar.com.my) 78

Which jobs are most threatened by AI? "Programmers, software engineers and other tech industry employees," goes one common answer.

"But many economists are more concerned about a different, larger group of white-collar workers," reports the New York Times: customer service reps, bookkeepers, payroll clerks and HR specialists, "who fly under the radar but collectively account for tens of millions of jobs..." They are spread across the country and throughout the economy, working in every industry, in big cities and small towns, at major corporations and mom-and-pop businesses... These jobs typically offer a middle-class salary or a pathway to achieving one — much as manufacturing jobs did for men before decades of globalisation and automation wiped many of them away... For now, such an outcome is a fear, not a forecast. Despite high-profile layoffs in tech and finance, there is little firm evidence that AI has hurt the labour market as a whole.

Economists have become increasingly convinced that disruptions are likely, but they say it is too early to know where or how widespread they will be. They remain broadly sceptical of claims that the technology will lead to mass unemployment in the near future. Some AI industry leaders have walked back such predictions in recent weeks. But given the extraordinary pace at which companies are adopting AI — and at which the technology is improving — economists say policymakers need to consider the potential effects on the labour market. And they say they are concerned that the public debate has focused too much on software engineers and a relative handful of other high-status careers — lawyers, consultants, economists — rather than the workers who could be most vulnerable...

Economists at Northwestern University recently recalculated measures of AI exposure based on the makeup of the total workforce, not just the people using the technology. Administrative and front-line roles, such as customer service representatives, rose to the top of the list. "The most affected jobs are secretaries, are routine clerks," said Michelle Yin, one of the working paper's authors. "They're not computer scientists or data scientists at all."

The article also includes this counterpoint from an economist at the University of Illinois who has studied earlier waves of white-collar automation: that like other disruptive technologies, AI likely will also create new jobs. So the possibility exists AI will make workers more productive and allow them to earn more. "I would be cautious about just focusing on what are we losing as opposed to what are we going to gain on the other side."
AI

WSJ Reports on 'Hard-line Activists Ramping Up for the War With AI' (msn.com) 70

The Wall Street Journal says "an intense 27-year-old activist who had been leading sit-ins at OpenAI to protest the dangers of AI" was just part of a larger movement.

"The Bay Area's AI boom is drawing young disillusioned men and women to join the fight against it. They are upending their lives and leaving behind careers for think tanks, nonprofits and street protest groups." Their cause is now riding a surge of anti-AI backlash. Many Americans are souring on the technology amid mass layoffs, data center sprawl, reports of chatbot-fueled attacks by unstable users and hacking tools that have panicked cybersecurity professionals. Seventy percent of U.S. adults believe AI will cost jobs, and 55% believe it will do more harm than good in their daily lives, according to a recent Quinnipiac University poll. But for activists on the front lines, the driving fear is often more dramatic: human extinction. They cling to dire predictions, like Geoffrey Hinton's. The Nobel laureate, dubbed the "godfather of AI" for his work on artificial neural networks, warns of a 10% to 20% chance AI will wipe out humans.

At its most extreme and troubling end, some believe they must stop an AI apocalypse by any means necessary. In April, an unknown assailant fired 13 shots at the home of an Indianapolis councilman, leaving a note: "no data centers." That same month, authorities arrested a 20-year-old Texas college student for an attack on OpenAI CEO Sam Altman's home in San Francisco, and charged him with attempted murder and arson. The student was carrying an anti-AI document with a section on "our impending extinction," according to a federal criminal complaint. He has pleaded not guilty and his lawyers have said his actions appear to have been driven by an "acute mental-health crisis, not a desire to harm."

Microsoft

Id Co-founders Carmack and Romero Respond to Microsoft's Layoffs (ign.com) 56

"I have been trying to find something meaningful to say about the Id Software layoffs," John Carmack posted Thursday to his 2.8 million followers on X.com: My "Microsoft will probably be a good steward of the brand" statement isn't aging well, and this is certainly going to dampen the mood of the founder reunion at QuakeCon next month.

I'm saddened, but I can't muster anger or outrage over it. I don't have access to the books, but I suspect that Id Software was a marginal business from Microsoft's perspective. I believe the reports that Minecraft revenues have been carrying several other studios.

To continue being produced long term, games need to succeed, not just be beloved. Games are competing with every other option for spending your leisure time and money, and the competition is brutal. You can't rule out the possibility that executives are idiots, but that shouldn't be your default belief. I don't think there is any obvious path that would have doubled the revenue from Id games.

Could they have gotten more with a different pricing strategy? Could they have created more things for fans to buy? Could they have cost effectively marketed in a way that reached more players that would have loved and bought the games? Could they have changed the game designs and broadened the appeal to more players without alienating existing ones? Could they have produced the games at a lower cost, faster or cheaper? I really don't know.

The game isn't over yet, and I hope the studio rallies through.

Id Software co-founder John Romero also shared his thoughts on X.com: I'm so sorry for everyone at id Software affected by these layoffs. I know what it feels like to leave id while id goes on. It's a strange and painful thing to step away from a place that holds so much of your work, friendships and history.

The people at id have done a great job moving that legacy forward. DOOM, Quake, and Wolfenstein are not easy names to carry on, especially in today's industry. The last few games showed real care, skill and respect for what those worlds mean to people.

Romero also expressed his hope for "digital preservation" of Id's ongoing history (including code and assets). "I'm thinking of everyone at id today, and everyone else affected by yesterday's layoffs. Romero Games was there a year ago. I know how devastating it is, and my heart's with all of you.

"Four Xbox studios are already out the door," noted IGN, but shared some thoughts about the future: Some have expressed concern that id Software would be unable to lead development on any new games in its current state, and that it might be relegated to support studio status. But in a new statement [posted to id Software's page on X.com] id Software said it was now at the staffing level it was back when it made the much-loved 2016 Doom reboot — and insisted it was still capable of making "great games."

"While our studio was impacted, those changes were spread across teams. We still have the crew we need to build the games and tech we're known for... We're going to keep building the great games and tech that have defined us for the past 35 years, and we're looking forward to seeing you at QuakeCon this August."

Facebook

Meta Removes Controversial AI Feature On Instagram After Backlash 10

"Meta has axed a controversial feature that allowed users to modify photos from public Instagram accounts using AI," reports TechCrunch: The feature, which wasn't designed to alert a user if their photos were used in this way, prompted immediate backlash... The company issued a blog post Friday announcing that it was removing the feature. Puck News founding partner Dylan Byers was the first to share the company's decision... Byers notes that the decision to do away with the feature came "amid scrutiny from users and talent agencies, including CAA."
China

China's AI Companies May Be 'Distilling' America's AI Models (yahoo.com) 51

In March, Anthropic's Claude "quietly deployed software to spy on China-based customers," reports the Washington Post — apparently to unmask Chinese rivals "suspected of hijacking its technology to make their own AI tools smarter." Last week Anthropic removed the spyware "after a software developer revealed its existence and privacy advocates criticized Anthropic, saying it had surveilled its own users." Anthropic's tracking code was designed in part to catch Chinese firms "distilling" its AI models, a technique that involves pressing a large, expensive AI system to serve as a tutor to a smaller, cheaper one. Asking the larger system huge numbers of questions — hundreds of thousands or more — generates responses that can be used to upgrade the power of the smaller one on the cheap. Distillation isn't illegal, and it has been used for years in the AI industry. But distillation without permission is against AI companies' rules, and, used effectively, is giving Chinese AI companies a major leg up, American AI companies say... Anthropic and ChatGPT-maker OpenAI have both accused Chinese AI companies of using this technique to build copycat AI models of their own.

In a May blog post, Anthropic said that Chinese companies' use of distillation, along with evading U.S. export controls on high-end computer chips, has allowed them to "trail closely" behind U.S. models. But if these techniques can be blocked, it might be possible for the United States to "lock in a 12-24 month lead" on Chinese capabilities, the company said... This month, Anthropic said in a letter to U.S. senators that was obtained by The Post that it uncovered a campaign in which Chinese tech giant Alibaba's Qwen AI team used roughly 25,000 fraudulent accounts to generate more than 28.8 million exchanges with Claude to improve its own technology. In February, Anthropic made similar accusations against the Chinese firms Deepseek, Moonshot and MiniMax and said the campaigns were "growing in intensity and sophistication...." Anthropic and OpenAI have appealed to the U.S. government, arguing that distillation amounts to intellectual property theft that harms the U.S. in the geopolitical AI contest....

That Chinese AI labs are using U.S. models to improve their own technology appears beyond dispute. In a February 2025 study, researchers from China's Peking University and the state-funded Chinese Academy of Sciences developed methods to detect signs of distillation in leading large language models. They concluded that, with the exception of ByteDance's Doubao, most domestic models they tested showed substantial evidence of distillation, mostly drawing from U.S. models... In one set of intensive tests, a Qwen model misidentified itself as Claude nearly a third of the time, the Chinese researchers found.

U.S. firms have also used distillation to piggyback on AI systems made by others. In 2024, OpenAI released a tool to make it easier for customers to distill its own models and produce data sets for AI training. SpaceX founder Elon Musk said in court testimony in May that his AI company xAI used distillation to train its models and that the technique is common throughout the industry.

The article also notes that Anthropic "said it has banned nearly 700,000 accounts that were using Claude in China." But the article includes this quote from Kyle Chan, a fellow at the Washington-based Brookings Institution's China Center. "Anthropic's framing is that this is a geopolitical contest for basically the future of the world and freedom and democracy. It's that this is not just undercutting the U.S. commercially, but undercutting American strategic advantage in the most powerful technology we know today."
Privacy

How Flock Cameras Wrongly Tracked a Journalist for Days, Then Sent Police to Arrest Him (thedrive.com) 132

"Are you armed?!" the police officer screamed. "Get out of the car!"

A writer for the car-news site The Drive describes how "a technological chain linking surveillance cameras, AI, and law enforcement... led to me and my wife being surrounded by police, hands on their guns, in a Kohl's parking lot in suburban Minnesota." After dropping off our Amazon returns, we'd just gotten back in the Range Rover and reversed maybe two feet out of the spot when four cop cars came flying out of nowhere and boxed us in... The Plymouth Police Department had been tracking me for days using Flock license plate cameras, waiting for the right moment to strike, because they thought I'd stolen the Range Rover. And the reason I was ID'd as a dangerous car thief was a simple data error made 2,000 miles away in California, creating an edge case within an edge case that Flock's AI camera network was unable to handle... "The plates on this car are stolen," Officer Ganshyn said...

This made absolutely no sense. Car companies keep meticulous track of the fleets they loan out to the media. The vehicles all have special manufacturer or dealer plates that are logged every time one enters or exits... The New Jersey plates that were allegedly stolen from the LA dealer were 34 03 DTM, not 34 10 DTM. But when the police report was created and the plate was entered into Flock's system, it was just recorded as 34 DTM. Just the five large characters, no little number in the middle...

Flock's AI tech wasn't registering that non-standard little number when it began picking up the Range Rover around town... I connected the final dot. A lot of vehicles in [Range Rover manufacturer] JLR's media fleet have a New Jersey manufacturer plate with the same alphanumeric structure — 34 ## DTM — and Officer Ganshyn observed that meant it was now a nationwide issue. Anywhere a police department has a partnership with Flock, any other JLR-owned car with the same plate structure is going to get flagged as stolen. In fact, four other 34 ## DTM cars were being tracked around Minnesota that week, according to Officer Ganshyn. I was just the first one to get nabbed.

The only way to stop it would be for the LAPD to correct their initial report and update Flock's system, which Jaguar Land Rover was now racing to make happen following the phone call. Still, he warned me to drive straight home, park the Range Rover, and leave it there. If I were to cross into the neighboring town, I'd probably get flagged again and go through this entire ordeal again with a different set of officers. His parting words were ominous: "You're lucky we're in Plymouth. If you were in Minneapolis, they definitely would've come at you with guns drawn."

Ironically, even the original license plate wasn't stolen either, the article points out. It was reported misplaced during a Los Angeles photo shoot, and "The corporation had to report the plate as lost to law enforcement," according to the police report — and even then, the plate "was reported as NJ 34DTM instead of NJ 3403DTM."

The author's conclusion? "Once these systems have you in their crosshairs, there's pretty much only one way it can go... A simple data-entry error, magnified and broadcast nationwide by a growing surveillance network operated through an opaque partnership between a private company and public agencies, led police to identify me as a car thief and set up a sting to take me down. I mean, they even had a drone flying overhead during the 'bust'...

"Thank God our kids weren't with us."

Thanks to long-time Slashdot reader sinij for sharing the article.
The Courts

Apple Sues OpenAI, Accusing It of Stealing Company Secrets (nytimes.com) 50

An anonymous reader quotes a report from The New York Times: Apple on Friday accused OpenAI of stealing secrets about products still in development, setting up a legal face-off between two of the world's biggest tech companies. In a lawsuit filed in U.S. District Court for the Northern District of California, the consumer tech giant said that OpenAI, a leader in artificial intelligence that has a new hardware business, had asked job candidates from Apple to share details about secret projects and to bring device components and prototypes to their interviews. Apple also accused an OpenAI employee of downloading internal documents from a laptop owned by the iPhone maker. OpenAI used the confidential information to approach Apple's manufacturing partners, including asking one partner to demonstrate Apple's technique for finishing metal on its devices, the lawsuit says. Apple sent a letter to OpenAI in February to raise concerns that confidential information could be "making its way to OpenAI's business improperly," according to the suit. OpenAI did not respond, Apple said. "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," Apple wrote in its lawsuit.

[...] In its lawsuit Friday, Apple accused Tang Tan, OpenAI's chief hardware officer and a former Apple executive, of coaching his hires from Apple on how to evade Apple's security processes for departing employees. Apple accused another former employee, Chang Liu, of using a former colleague's Apple-owned laptop to access and download technical documents while working at OpenAI. Mr. Liu told that Apple employee what information about unannounced products she should study before job interviews, Apple said. Mr. Liu also planned to access internal documents through an Apple-owned laptop that he didn't return when he left the company, according to the lawsuit. OpenAI had misled the manufacturing company it approached to learn about the metal finishing technique to believe it had Apple's permission to view it, according to the lawsuit. Apple is seeking an injunction that would prevent OpenAI from possessing, using or sharing Apple's trade secrets, as well as an order requiring OpenAI to return Apple's intellectual property.

EU

Disable Autoplay and Infinite Scroll Or Risk Massive Fines, EU Tells Meta (arstechnica.com) 111

An anonymous reader quotes a report from Ars Technica: The European Union is ramping up pressure on Meta to make big changes to Facebook and Instagram after the European Commission preliminarily found that features like autoplay, infinite scroll, and highly personalized content recommendations were addictive. On Thursday, the EC said its investigation indicated that "Meta did not adequately assess the risks of its addictive design on the physical and mental wellbeing of users, including minors and vulnerable adults." "These features fuel the user's urge to keep scrolling and shift the brain into 'autopilot mode,' contributing to unhealthy habits and compulsive use," the commission said. Over the next few months, Meta will have an opportunity to dispute the claims, and it has already taken a defensive stance. Meta's spokesperson, Ben Walters, told Reuters that Meta disagrees with the commission's preliminary findings, which supposedly "don't accurately take into account the significant steps we've taken to protect teens."

"Since this investigation began, we rolled out Teen Accounts that automatically protect teens and put parents in control -- allowing them to block access to Instagram at night and cap daily screen time at just 15 minutes," Walters said. However, the EC emphasized that Meta's current mitigation efforts, including time management tools activated by default for teens, "failed to effectively tackle the risks stemming from its addictive design." Additionally, parental controls were deemed "only effective if parents and guardians possess adequate technical expertise" and dedicated "effort and time to understand them effectively." "This undermines the efficiency of such measures in addressing the inherent risks posed by Instagram and Facebook's addictive design," the EC said, particularly for minors.

At this stage, the EC recommended that Meta consider "disabling key addictive features such as 'autoplay' and 'infinite scroll' by default, implementing effective 'screen time breaks,' and adapting its recommender system to make it less engagement-oriented." If Meta fails to make changes to comply with the EU's Digital Services Act, the company risks fines up to 6 percent of its global annual turnover when the EC makes its final decision in the coming months. "Our starting point is that, based on our findings, this design is too addictive and changes need to be made," Henna Virkkunen, the EU's tech chief, told Reuters. "The next step is either that Meta changes its design or a non-compliance decision will follow," she said, noting in the press release that the EU's priority is "protecting the physical and mental health of Europeans."
"The Digital Services Act provides a clear framework to hold platforms accountable for the addictive design and effects of their services," Virkkunen said. "We are fully committed to enforcing our legislation in Europe."

The report also notes that the EC will share findings from experts on Monday that "could help pave the way for a Europe-wide social media ban for teenagers." It's not looking much better for Meta in the U.S., either. The company faces a lawsuit from 29 states that claim Meta's platforms addict kids. "That trial begins in August, and states may seek up to $1.4 trillion in penalties if Meta is found guilty," reports Ars.
Television

Disney+ Explores a Free Tier As YouTube Draws TV Viewers (businessinsider.com) 40

Disney is exploring a free tier for Disney+ that would make some content available without a subscription. According to Nielsen data, the three largest free streamers accounted for 18.7% of watch time on U.S. TVs in April, up from 16.8% a year earlier and 12.7% in April 2024. Business Insider reports: Product and tech chief Adam Smith spoke about enabling free-tier content during a streaming town hall on Thursday afternoon, one staffer said. Smith didn't share a timeline for this initiative or a sense of the scope, this person added. A person familiar with Disney's streaming strategy said these talks are part of an ongoing discussion about concepts to better serve fans. Currently, the Disney+ and Hulu bundle costs $12.99 a month with ads or $19.99 without ads at full price.
AI

Lawmakers Probe Growing Use of Chinese AI Models In US Companies (cnbc.com) 109

U.S. lawmakers are probing the growing use of Chinese AI models by American companies, citing concerns over censorship, security risks, and whether U.S. firms are turning to cheaper foreign models because domestic alternatives are too costly or restricted. The investigation is specifically looking at companies such as Cursor and Airbnb. "The growing use of Chinese AI models by U.S. companies raises serious concerns," a State Department spokesperson told CNBC. Those "AI models are designed to advance Beijing's narratives, censor dissent, and reflect CCP ideology and values." CNBC reports: The House Committee on Homeland Security and the House Select Committee on China said in April they will jointly investigate the growing adoption of Chinese-developed AI models. An initial step in the probe was for the chairmen of those committees to send letters to Cursor and Airbnb, over their "use of or exposure to these risks" through AI developed in China. "The Chinese Communist Party is no longer just nipping at our heels in artificial intelligence; it is racing to close the gap in some of the exact capabilities that will shape the future of cybersecurity," Andrew Garbarino, chairman of the U.S. House Committee on Homeland Security, told CNBC. "Recent reporting that a Chinese open-weight model can match leading U.S. models in certain vulnerability discovery and cybersecurity tasks is highly alarming," said Garbarino.

While some government departments have banned the usage of Chinese AI models including DeepSeek, adoption of them by U.S. companies is not prohibited. Tech chiefs, including crypto company Coinbase's Brian Armstrong and AI startup Lindy's Flo Crivello, have been publicly touting the use of models from China to reduce costs. Cursor, which will be acquired by Elon Musk's SpaceX for $60 billion, built its Composer 2 model using Chinese AI model Kimi, which was developed by Moonshot AI. Alongside focusing on the rise of Chinese AI models, the ongoing joint House Committees' investigation is also looking into whether the U.S. is doing enough to tackle their rise. "The Committees are also examining whether the United States has a sufficient open-weight AI strategy to ensure American companies and cyber defenders are not forced to choose between expensive or restricted U.S. models and cheap, capable PRC-developed alternatives," a Committee aide, who asked not to be named as they were not authorized to discuss the ongoing probe, told CNBC.

[...] The administration could consider the use of federal procurement bans, which would include restricting government agencies and private companies that serve the U.S. government from using Chinese AI models, Kyle Chan, fellow in the John L. Thornton China Center at think tank Brookings, told CNBC. "However, it's ultimately impossible to ban China's open-source AI models because their model weights are available freely on the internet," Chan added. "This could enter into first amendment speech issues." [...] Another [approach] could be disseminating findings about risks and vulnerabilities associated with Chinese AI models to U.S. companies. "Regardless, I do expect both the Executive Branch and Congress to communicate their interest not to see U.S. companies adopting these models," [said Daniel Remler, senior fellow, technology and national security program at think tank the Center for a New American Security (CNAS), told CNBC].

Canada

Meta To Build $9 Billion Alberta Data Center, Its First In Canada (yahoo.com) 71

Meta will build its first Canadian data center in Alberta, investing $9 billion in a 1-gigawatt facility that can scale to 1.8 gigawatts to support its AI infrastructure needs. The project will rely on new generation and grid infrastructure funded by Meta, including a long-term agreement tied to a new natural gas power facility. The company says it will offset electricity use with clean and renewable energy investments. Reuters reports: Meta has doubled down on AI, pledging hundreds of billions of dollars to build large AI data centers in the U.S. The Alberta announcement represents the company's 33rd data center globally. Executives made the announcement in Calgary alongside Premier Danielle Smith and other Alberta government officials, who have spent several years courting Silicon Valley tech giants with the aim of spurring a large-scale investment in the oil-and-gas province. Alberta's technology minister, Nate Glubish, told reporters there are currently several other gigawatt-scale data center proposals in various stages of development in the province. "This is the first of its kind, the first of its size, the first of its scale, but it won't be the last," Glubish said.

Meta, like other tech giants, is facing rapidly expanding power needs due to the growth of AI, and Alberta is rich in natural gas which sells at a significant discount to the U.S. benchmark. The province's cold climate also makes cooling the massive super-computers and related data center infrastructure more cost-efficient. The 20 existing small- to mid-scale data centers in Alberta already pull from the province's energy grid, which is 60% powered by natural gas. The provincial government is giving new proponents the option to build their own power sources to avoid limits on power capacity. Meta said Wednesday it will fully fund new generation and grid infrastructure for its Alberta data center, which will consume about as much electricity as 800,000 homes. Gary Demasi, Meta's vice president for data center development, said the company will offset that electricity use by investing in clean and renewable energy. He also said the data center will use a closed-loop liquid cooling system, meaning its total water use will be less than that of a typical golf course.

[...] The company has partnered with Alberta-based Pembina Pipeline , which announced last week it will go ahead with its Greenlight Electricity Centre, a new natural gas-fired power-generation facility in Sturgeon County which will be in service in late 2030 and with which Meta has a long-term tolling agreement. Until that project is operational and for the next decade, Alberta-based power producer Capital Power will provide 250 megawatts of electricity for the site using its existing natural gas-fired fleet. The project will require approximately 150 million cubic feet per day of natural gas, according to Pembina, helping to create demand for Western Canadian natural gas producers.

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