Just six days ago — and 30 minutes after a Disney-OpenAI meeting about a project with Sora — Disney's team was "blindsided" with the news Sora was being discontinued, a person familiar with the matter told Reuters, describing OpenAI's move as "a big rug-pull."

Even some Sora employees were surprised by the cancellation. It was just 14 weeks ago Disney announced a $1 billion investment in OpenAI's AI-powered video generation tool — plus a three-year licensing deal. But that deal "never closed," Reuters adds, citing two other people familiar with the matter, "and no money changed hands." (Although the two sides are still "discussing if there is another way they can partner or invest with one another, one of the people familiar with the matter said.")

But Variety wonders if the end of the Sora deal is "a blessing in disguise" for Disney: Before Disney's officially sanctioned AI-generated versions of Mickey Mouse, Darth Vader, Baby Yoda, Deadpool and more debuted in OpenAI's Sora, the AI company abruptly pulled the plug on the video app...

[M]any aficionados of Disney's franchises were not, in fact, excited about what Sora's video generator might do to the likes of the Avengers superheroes or the characters from Frozen or Moana. And despite [departed Disney CEO Bob] Iger's bullishness on the Sora deal, other Disney execs were said to be concerned that going into business with OpenAI would expose the Magic Kingdom's crown jewels to the risk of being turned into so much AI slop, according to industry sources. Hollywood unions — for which AI adoption has been a hot-button issue — weren't thrilled about the Disney-Sora deal either. "Disney's announcement with OpenAI appears to sanction its theft of our work and cedes the value of what we create to a tech company that has built its business off our backs," the Writers Guild of America said in December... [S]ources say, Disney was encountering roadblocks in getting the OK from voice actors for the Sora pact...

At least publicly, Disney says it is still looking at ways it can tap into the AI ecosystem. The company, in a statement Tuesday, said, "we will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators." But at this point, Disney may decide that "meeting fans where they are" means keeping its beloved and world-famous characters away from the AI machinery.
Or, as Gizmodo puts it, "Disney Says It Will Find Ways to Peddle Slop Elsewhere After Pulling Out of OpenAI Deal."

But Deadline sees the deal's collapses as a lost opportunity: The OpenAI partnership was a template on which to build, potentially allowing for other deals that end the exploitation of human creativity by unscrupulous AI models. It was also the kind of partnership that was palatable for the Human Artistry Campaign and Creators Coalition on AI, lobby groups that have been critical of tech business models and command support from A-listers including Scarlett Johansson, Cate Blanchett and Joseph Gordon-Levitt.

Dr. Moiya McTier, an advisor to the Human Artistry Campaign, puts it this way: Part of the problem is getting "artsy people and the techie people to talk." OpenAI sinking Sora will not make these discussions easier. It's a move that starkly exposes Hollywood's vulnerability to the capriciousness of big tech.

"IBM says its quantum computer can now simulate real magnetic materials and match actual lab experiment results," writes Slashdot reader BrianFagioli, "which is something people have been waiting years to see." Instead of just theoretical output, the system reproduced neutron scattering data from a known material, meaning it lines up with real world physics. It still relies on a mix of quantum and classical computing and this is a narrow use case for now, but it is one of the first times quantum hardware has produced results that scientists can directly validate against experiments, which makes it a lot more interesting than the usual hype.
Classical computers "are not great at modeling quantum systems," according to this article at Nerds.xyz. "The math gets messy fast, and scientists end up relying on approximations... Quantum computers are supposed to solve that problem..." If this direction continues, it could start to matter in areas like superconductors, battery tech, and even drug development. Those are the kinds of problems where better simulations can actually lead to better outcomes, not just nicer charts in a research paper.
"I am extremely excited about what this means for science," said study co-author Allen Scheie from the Los Alamos National Laboratory. In an announcement from IBM, Scheie calls this "the most impressive match I've seen between experimental data and qubit simulation, and it definitely raises the bar for what can be expected from quantum computers."

Memory and storage shortages and price hikes have "steadily rippled outward across all kinds of consumer tech," reports Ars Technica.

"Today's bad news comes from Sony, which is raising prices for PlayStation 5 consoles in the US just eight months after their last price hike." The drive-less Digital Edition will increase from $500 to $600; the base PS5 with an optical drive will increase from $550 to $650; and the PS5 Pro is going up from $750 to a whopping $900. At the beginning of 2025, these consoles cost $450, $500, and $700, respectively...

RAM and flash memory chips are in short supply primarily because of demand from AI data centers — memory manufacturers have shifted more production toward making the kind of memory found in AI accelerators like Nvidia's H200, leaving less for the consumer market. And the situation is unlikely to improve any time soon, barring a major shift in demand from the AI industry.

Austria plans to restrict under-14s from using social media platforms over concerns about addictive algorithms and harmful content. The government says draft legislation should be ready by the end of June, though details around enforcement and age verification have yet to be finalized. The BBC reports: Announcing the plans, Vice-Chancellor Andreas Babler of the Social Democrats said the government could not stand by and watch as social media made children "addicted and also often ill." He said it was the responsibility of politicians to protect children and argued that the issue should be treated no different to alcohol or tobacco: "There must be clear rules in the digital world too." In future, said Babler, children under 14 would be protected from algorithms that were addictive. "Other information providers have clear rules to protect young people from harmful content." These, he said, should now be implemented in the digital space. Yesterday, juries in two separate cases found social media giants liable for harming young people's mental health. The verdicts are being hailed as social media's Big Tobacco moment.

Further reading: California Bill Would Require Parent Bloggers To Delete Content of Minors On Social Media

OpenAI has indefinitely paused plans for an erotic mode in ChatGPT as part of a broader strategy shift away from side projects and toward business and coding tools. TechCrunch reports: The proposed "adult mode," which CEO Sam Altman first floated in October, had inspired considerable controversy from tech watchdog groups as well as from OpenAI's own staff. In January, a meeting between company executives and its council of advisers got heated, with one of the advisers cautioning that OpenAI could be in the process of developing a "sexy suicide coach," The Wall Street Journal previously reported.

Amidst all of the criticism, the release of the feature was delayed multiple times. FT notes that the erotic feature now has no timeline for release. When reached for comment by TechCrunch, an OpenAI spokesperson said the company had "nothing further to add."

Elizabeth Warren and Josh Hawley are pressing the Energy Information Administration (EIA) to provide better information on how much electricity data centers actually use. In a joint letter sent to the EIA on Thursday, the two senators press the agency to publicly collect "comprehensive, annual energy-use disclosures" on data centers, saying it's "essential for accurate grid planning and will support policymaking to prevent large companies from increasing electricity costs for American families." Wired reports: In December, EIA administrator Tristan Abbey said at a roundtable that he expects the EIA "is going to be an essential player in providing objective data and analysis to policymakers" with respect to data centers. The agency announced on Wednesday that it would be conducting a voluntary pilot program to collect energy consumption information from nearly 200 companies operating data centers in Texas, Washington, and Virginia, which will cover "energy sources, electricity consumption, site characteristics, server metrics, and cooling systems."

While the senators praise the EIA pilot program, their letter includes several questions about how the agency plans to move forward with more data collection, such as whether or not the energy surveys will be mandatory and whether or not the EIA will collect information on behind-the-meter power. This information will be especially crucial, the senators say, to make sure that big tech companies that signed the agreement at the White House earlier this month pledging that consumers won't bear the costs of data center electricity use will stick to their promises. "Without this data, policymakers, utility companies, and local communities are operating in the dark," the senators write.

The EIA mandates that other industries, including oil and gas and manufacturing, provide regular data to the agency; Hawley and Warren assert that the EIA should be able to collect similar information from data centers under the same provision. The provision is broad enough, Peskoe says, that it could absolutely be interpreted to encompass data centers. Yesterday, Senator Bernie Sanders and Rep. Alexandria Ocasio-Cortez announced a bill that would "enact a reasonable pause to the development of AI to ensure the safety of humanity." It calls for a federal moratorium on AI data centers until stronger national safeguards are in place around safety, jobs, privacy, energy costs, and environmental impact.

BrianFagioli writes: Mozilla just teamed up with Mila, the Quebec Artificial Intelligence Institute, to push open source AI -- and it feels like a direct response to Big Tech tightening its grip on the space. Instead of relying on closed models, the goal here is to build "sovereign AI" that's more transparent, privacy-focused, and actually under the control of developers and even governments. They're starting with things like private memory for AI agents, which sounds niche but matters if you care about where your data goes. Big question is whether open source can realistically keep up with the billions being poured into proprietary AI, but at least someone's trying to give folks an alternative. "Canada has what it takes to lead on frontier AI that the world can actually trust: the research depth, the values, and the will to do it differently. The next frontier in AI isn't just capability, it is trustworthiness, and Canada is uniquely positioned to lead on both. This partnership is a concrete step in that direction. Open, trustworthy AI isn't a compromise on ambition. It's the higher bar," said Valerie Pisano, president and CEO of Mila.

Longtime Slashdot reader theodp writes: In Melania and the Robot, the New York Times reports on First Lady Melania Trump's inaugural Fostering the Future Together Coalition Summit, which brought together international leaders, First Spouses from around the world, tech leaders, educators, and nonprofits to collaborate on practical solutions that expand access to educational tools while strengthening protections for children in digital environments (Day 2 WH summary). The Times begins:

"On Wednesday, Mrs. Trump appeared at the White House alongside Figure 3, a humanoid, A.I.-powered robot whose uses, according to the company that makes it, include fetching towels, carrying groceries and serving champagne. But Mrs. Trump joins tech executives and some researchers in envisioning a world beyond robot butlery. She is interested in how these robots could cut it as educators. Both clad in shades of white, the first lady and the visiting robot walked into a gathering of first spouses from around the world, a group that included Sara Netanyahu of Israel, Olena Zelenska of Ukraine, and Brigitte Macron of France. The dulcet tones from a (presumably human) military orchestra played as the first lady and her guest entered the event. Both lady and robot extolled the virtues of further integrating robots into the educational and social lives of children. In the history of modern first-lady initiatives, which have included building a national book festival (Laura Bush), reshuffling the food pyramid (Michelle Obama) and advocating for free community college (Jill Biden), Mrs. Trump's involvement of a humanoid robot in education policy was a first."

"Figure 3 delivered brief remarks and delivered salutations in several languages. With its sleek black-and-white appearance, Figure 3 would fit right in with the first lady's branding aesthetic, which includes a self-titled coffee table book and movie, not least because the name "MELANIA" was emblazoned on the side of its glossy plastic head. After Figure 3 teetered gingerly away, Mrs. Trump looked around the room and told them that the future looked a lot like what they had just witnessed. 'The future of A.I. is personified,' she told her audience. 'It will be formed in the shape of humans. Very soon artificial intelligence will move from our mobile phones to humanoids that deliver utility.' She invited her guests to envision a future in which a robot philosopher educated children."

A jury found Meta and YouTube negligent in a landmark social media addiction case, ruling that addictive design features such as infinite scroll and algorithmic recommendations harmed a young user and contributed to her mental health distress. The verdict awards $3 million in compensatory damages so far and could pave the way for more lawsuits seeking financial penalties and product changes across the social media industry. "Meta is responsible for 70 percent of that cost and YouTube for the remainder," notes The New York Times. "TikTok and Snap both settled with the plaintiff for undisclosed terms before the trial started." From the report: The bellwether case, which was brought by a now 20-year-old woman identified as K.G.M., had accused social media companies of creating products as addictive as cigarettes or digital casinos. K.G.M. sued Meta, which owns Instagram and Facebook, and Google's YouTube over features like infinite scroll and algorithmic recommendations that she claimed led to anxiety and depression.

The jury of seven women and five men will deliberate further to decide what further punitive damages the companies should pay for malice or fraud. The verdict in K.G.M.'s case -- one of thousands of lawsuits filed by teenagers, school districts and state attorneys general against Meta, YouTube, TikTok and Snap, which owns Snapchat -- was a major win for the plaintiffs. The finding validates a novel legal theory that social media sites or apps can cause personal injury. It is likely to factor into similar cases expected to go to trial this year, which could expose the internet giants to further financial damages and force changes to their products. The verdict also comes on the heels of a New Mexico jury ruling that found Meta liable for violating state law by failing to protect users of its apps from child predators.

Meta lost a child safety trial in New Mexico after a court found that its platforms failed to adequately protect children from exploitation and misled parents about app safety. According to Ars Technica, the jury on Tuesday "deliberated for only one day before agreeing that Meta should pay $375 million in civil damages..." While the jury declined to impose the maximum penalty New Mexico sought, which could have cost the company $2.2 billion, Meta may still face additional financial penalties and could be forced to make changes to its apps. From the report: The trial followed a 2023 lawsuit filed by New Mexico Attorney General Raul Torrez after The Guardian published a two-year investigation exposing child sex trafficking markets on Facebook and Instagram. Torrez's office then conducted an undercover investigation codenamed "Operation MetaPhile," in which officers posed as children on Facebook, Instagram, and WhatsApp. The jury heard that these fake profiles were "simply inundated with images and targeted solicitations" from child abusers, Torrez told CNBC in 2024. Ultimately, three men were arrested amid the sting for attempting to use Meta's social networks to prey on children. At trial, Mark Zuckerberg and Instagram chief Adam Mosseri testified that "harms to children, such as sexual exploitation and detriments to mental health, were inevitable on the company's platforms due to their vast user bases," The Guardian reported. Internal messages and documents, as well as testimony from child safety experts within and outside the company, showed that Meta repeatedly ignored warnings and failed to fix platforms to protect kids, New Mexico's AG successfully argued.

Perhaps most troubling to the jury, law enforcement and the National Center for Missing and Exploited Children also testified that Meta's reporting of crimes to children on its apps -- including child sexual abuse materials (CSAM) -- was "deficient," The Guardian reported. Rather than make it easy to trace harms on its platforms, the jury learned from frustrated cops that Meta "generated high volumes of 'junk' reports by overly relying on AI to moderate its platforms." This made its reporting "useless" and "meant crimes could not be investigated," The Guardian reported.

Celebrating the win as a "historic victory," Torrez told CNBC that families had previously paid the price for "Meta's choice to put profits over kids' safety." "Meta executives knew their products harmed children, disregarded warnings from their own employees, and lied to the public about what they knew," Torrez said. "Today the jury joined families, educators, and child safety experts in saying enough is enough." Meta said the company plans to appeal the verdict. "We respectfully disagree with the verdict and will appeal," Meta's spokesperson said. "We work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content. We will continue to defend ourselves vigorously, and we remain confident in our record of protecting teens online."

Google is expanding Android Automotive from the infotainment screen into the broader non-safety "brain" of software-defined vehicles. With its new Android Automotive OS for Software-Defined Vehicles, the in-car experience will feel "much more cohesive and the latest features will reach your driveway faster," Matt Crowley, Android Automotive's group product manager, writes in a blog post. "From a truly integrated voice experience to proactive maintenance reminders, your car will become a true extension of your digital life," Crowley adds. The Verge reports: With its new software, Google is promising faster over-the-air software updates, better voice assistants, and more proactive vehicle maintenance alerts. Non-driving functions like climate control, lighting, and seating adjustment would fall under Android's control. And the system would move beyond basic infotainment to create a unified ecosystem for features like remote cabin conditioning, digital key management, and personalized driver profiles.

For automakers, the new system promises less expensive software development costs and an opportunity to focus on what matters most to them: branding. By providing the "foundational code and a common language for their software," Google says automakers will be free to design cool experiences for their customers. Google says its already working with companies like Renault Group and Qualcomm to bring its new software-defined vehicle version of Android Automotive to more cars. A variety of automakers already use regular Android Automotive, like Volvo, Polestar, General Motors, Nissan, and Honda.

OpenAI is shutting down Sora, its generative-AI video creation platform it launched in December 2024. "The move is one of a number of steps OpenAI is taking to refocus on business and coding functions ahead of a potential initial public offering as soon as the fourth quarter of this year," reports the Wall Street Journal.

CEO Sam Altman announced the changes to staff on Tuesday. "We're saying goodbye to Sora," the Sora Team said in a post on X. "To everyone who created with Sora, shared it, and built community around it: thank you. What you made with Sora mattered, and we know this news is disappointing. We'll share more soon, including timelines for the app and API and details on preserving your work."

Last week, OpenAI announced plans to combine its Atlas web browser, ChatGPT app, and Codex coding app into a singular desktop "superapp." "We realized we were spreading our efforts across too many apps and stacks, and that we need to simplify our efforts," said CEO of Applications, Fidji Simo. "That fragmentation has been slowing us down and making it harder to hit the quality bar we want." This could behind the decision to kill Sora as the company redirects its resources and top talent towards productivity tools that benefit both enterprises and individual users.

Anthropic is testing a new Claude feature that lets users send a request from their phone and have the AI carry it out directly on their computer, such as opening apps, using a browser, or editing files. The move follows the viral spread of OpenClaw earlier this year, which has gained cult popularity among devs for the ability to run local, 24/7 personal workflows. CNBC reports: Users can now message Claude a task from a phone, and the AI agent will then complete that task, Anthropic announced Monday. After being prompted, Claude can open apps on your computer, navigate a web browser and fill in spreadsheets, Anthropic said. One prompt Anthropic demonstrated in a video posted Monday is a user running late for a meeting. The user asks Claude to export a pitch deck as a PDF file and attach it to a meeting invite. The video shows Claude carrying out the task. [...]

Anthropic cautioned that computer use "is still early compared to Claude's ability to code or interact with text." "Claude can make mistakes, and while we continue to improve our safeguards, threats are constantly evolving," Anthropic warned. The company added that it has built the computer use capability "with safeguards that minimize risk," and that Claude will always request permission before accessing new apps. Users can use Dispatch, a feature it released last week in Claude Cowork. That lets users have a continuous conversation with Claude from a phone or desktop and assign the agent tasks.

An anonymous reader quotes a report from Ars Technica: An appeals court invalidated the Biden-era Federal Trade Commission's attempt to punish Intuit for allegedly deceptive ads that pitched TurboTax as free. Under then-Chair Lina Khan, the FTC determined in 2024 that the TurboTax maker violated US law with deceptive advertising and ordered it to stop telling consumers, without more obvious disclaimers, that TurboTax or other products are free. The FTC's chief administrative law judge had previously found that Intuit's ads violated prohibitions on deceptive advertising because the firm "advertised to consumers that they could file their taxes online for free using TurboTax, when in truth, for approximately two-thirds of taxpayers, the advertised claim was false."

Intuit appealed in the conservative-leaning US Court of Appeals for the 5th Circuit and got a resounding victory on Friday in a 3-0 ruling issued (PDF) by a panel of judges. "Following the Supreme Court's decision in SEC v. Jarkesy, we hold that adjudication of a deceptive advertising claim before an administrative law judge violated the constitutional separation of powers," the 5th Circuit panel said. The Supreme Court's June 2024 ruling (PDF) in Securities and Exchange Commission v. Jarkesy held that the SEC system for issuing fines violated the right to a jury trial. The 5th Circuit panel said the Jarkesy decision confirms that the FTC must pursue deceptive advertising claims in courts rather than its own administrative process. [...]

The 5th Circuit ruling acknowledged that most people can't use TurboTax for free. "TurboTax 'Free Edition' has been part of the TurboTax range for more than a decade, available to taxpayers for what Intuit refers to as 'simple tax returns,'" the ruling said. "Most American taxpayers do not have 'simple tax returns.' The TurboTax website is designed so that any individual taxpayer can begin preparing a tax return in TurboTax Free Edition, but those who enter disqualifying information are prompted before filing to upgrade to a paid product." Although the court noted that Intuit stopped the specific ads challenged by the FTC, the ruling said the cease-and-desist order issued by the agency could have far-reaching effects on Intuit marketing. "The cease-and-desist order is remarkably broad: it prohibits Intuit for the next twenty years from advertising 'any goods or services' as free unless specific, extensive, and arguably unworkable requirements are satisfied. The order is not confined to tax-preparation solutions and extends to all products sold by Intuit," the ruling said.

The 5th Circuit said the FTC's deceptive advertising claims are "traditional actions at law and equity and thus involve private rights that demand adjudication in an Article III court." The court rejected the FTC's argument that the claims involve public rights that may be adjudicated by administrative agencies. "In sum, there is overwhelming evidence that Section 5 of the FTC Act did not create a new duty for merchants to refrain from deceptive advertising," the 5th Circuit said. "That duty long predated the FTC Act and could be enforced by private parties in actions at common law or equity for fraud, deceit, or unfair competition."

Nvidia CEO Jensen Huang says he understands the concerns about "AI slop" with DLSS 5 but insists the feature preserves a game's underlying geometry and artistic intent. "I think their perspective makes sense, " said Huang during a recent appearance on the Lex Fridman podcast. "And I could see where they're coming from because I don't love AI slop myself. You know, all of the AI-generated content increasingly looks similar, and they're all beautiful... so I'm empathic toward what they're thinking. That's just not what DLSS 5 is trying to do." Tom's Hardware reports: Although Huang is striking a more conciliatory tone, much of his response is similar to what we heard at GTC [where Huang said gamers were "completely wrong."] The artist determines the geometry, we are completely truthful to the geometry... so every single frame, it enhances, but it doesn't change anything." There was some confusion about how DLSS 5 worked when it was first announced, and although the inner workings of it still aren't clear on a technical level, Huang has said that it isn't a general-purpose generative AI model. He describes it as "content-controlled generative AI." On the other end of the spectrum, Huang also said that it isn't a post-processing filter. The technical details of DLSS 5 live somewhere between that space, and we likely won't know them until later this year when the feature is set to release.

"The question about enhancing, DLSS 5... in the future, you could even prompt it. You know, I want it to be a toon shader. I want it to look like this, kind of. You could even give it an example and it would generate in the style of that, all consistent with the artistry, the style, the intent of the artist," Huang continued. "All of that is done for the artist so they can create something that is more beautiful but still in the style that they want." Although the talking points about DLSS 5 remain unchanged, it seems that Huang has at least heard the criticism. "I think that they got the impression that the games are going to come out the way the games are... and then we're going to post-process it. That's not what DLSS is intended to do."

Huang also made assertions that DLSS is "integrated" with the artist, and suggested that it would put the power of generative AI in the hands of artists working in game development [...]. Although DLSS 5 looks like it's doing a lot, Huang said that it's just another tool, not an essential feature. "The gamers might also appreciate that, in the last couple of years, we introduced skin shaders to game developers, and many of those games have skin shaders that include sub-surface scattering that makes skin look more skin-like... [DLSS 5] is just one more tool. They can decide what to use," Huang ended the conversation about DLSS 5. Immediately after, without missing a beat, he said 1993's Doom was the most influential video game ever made.