AI

Google Invests $75 Million In A24 To Develop AI-Powered Filmmaking Tools 11

Google is investing roughly $75 million in A24 as part of a research partnership with DeepMind to develop AI-powered filmmaking tools and workflows. "The deal represents the latest marriage between a Hollywood studio and AI in an era where companies have oscillated between partnerships and lawsuits," reports Variety. From the report: A24 partner Scott Belsky, who leads the studio's technology division A24 Labs, told the Journal the studio's Google partnership differed from other deals because AI developers mistakenly advertised their products as a means to make films cheaper and faster. His division is developing applications for AI-generated storyboards, another reimagination of the production process that has seen filmmakers like Martin Scorsese rubber-stamp. "We think there are better uses that preserve creative control and support risk-taking," said Belsky, arguing the new tools "won't look anything like the prompted generation type of AI that people feel uncomfortable with."
Technology

Some Electricians Think Building Data Centers Is For Sellouts (wired.com) 32

An anonymous reader quotes a report from Wired: As Big Tech dumps billions of dollars into America's data center buildout, a slew of opportunities have opened up to the electricians wiring these massive facilities. In some cases, the scale of the projects and the demanding construction timelines are fueling talent wars for the industry's best and brightest. The US-based International Brotherhood of Electrical Workers (IBEW) has argued that its workers are "powering the AI Revolution," and a set of "Data Center Principles" published in March argues that union labor is "essential to the future of AI." Tech companies are trying to meet the moment: Meta recently announced a skilled trade academy program, and Google committed $50 million to help train people in skilled trades.

But amid growing national opposition to data centers, debates over the ethics of the massive buildout have started to pop up in some online pockets of the community. Threads about how AI will affect the economy now pepper r/electricians, a subreddit with around half a million monthly visitors. Some users wonder whether the work will eventually prompt widespread job losses. Others aren't sure if their labor makes them complicit in the damage done to local communities or whether it's unethical to take on data center work. For some, the answer is a firm no. Ultimately, they argue, work is work.
An anonymous Midwest electrician who spoke to Wired acknowledged concerns about scams, corporate greed, and AI's impact on workers, but said he views data centers as an important source of career advancement. "This is most likely going to be a major part of our future. And if you can't beat them, join them," he said.

An electrician named Ryan, meanwhile, is strongly opposed to working on data centers because he distrusts the corporations and political environment driving AI development. Still, if the facilities are going to be built, he would prefer union workers construct them. "If they're going to get built, I'd rather they go union," he said.

Jesse, an IBEW electrician, sympathizes with communities negatively affected by data centers but does not believe the electricians building them should be blamed. In his view, opposition should instead be directed toward policymakers and the project approval process. "I think it's ridiculous if, to build a data center or any kind of a business, you're going to significantly impact the lives of that community in a negative way," he told Wired.

An electrician named Dante echoed some of those sentiments, arguing that data center work is no more ethically compromised than many other commercial construction projects. "We're almost always working for the worst possible people in the end, but we all need a paycheck," he said. He added that such projects are "essentially the same kind of work," typically performed for wealthy corporations seeking to become even richer.
Power

The Secret Revolution in Battery Technology: 3-D Printing (msn.com) 44

"There's a revolution in battery technology hiding in plain sight," reports The Wall Street Journal. "The 3-D printing of batteries has the potential to put energy storage inside any device.

"This will enable lightweight and long-lasting consumer gadgets, long-range military drones and even nanoscale robots." Almost all the innovations we regularly hear about — from cheaper, tougher electric-vehicle batteries to "Holy Grail" solid-state batteries — are about changing the chemistry of batteries. The promise of battery-tech 3-D printing (aka additive manufacturing) is simple: What if batteries could fill any available space, even structural elements of our gadgets, rather than always taking a rigid shape like a pouch or cylinder?

The new approach has obvious appeal. The entire airframe of a drone could be filled with energy storage for increased range. Smartglasses could have sleek battery-packed frames, so they look like everyday eyewear rather than "Revenge of the Nerds" props. One of the biggest advantages of 3-D printing is that it works with any battery, regardless of its cell chemistry. It could advance today's lithium-ion as well as emerging sodium-ion and solid-state tech... Some [startups] are trying to use 3-D printing to create efficiencies in existing battery manufacturing systems. A brave handful of startups are pursuing radical new designs and approaches. They're starting with defense applications, where cost and scale are less of an issue...

At Silicon Valley-based Sakuu... [r]ather than trying to 3-D-print whole batteries, the company is working on replacing one of battery manufacturing's biggest pain points, says Arwed Niestroj, Sakuu's chief operating officer, who is also a nuclear physicist and former head of Mercedes-Benz Research & Development North America. Existing battery assembly lines include football-field-long ovens for drying layers of material that have been dissolved in solvents. This requires a huge amount of energy and is a significant contributor to manufacturing costs, a big reason EV batteries aren't cheaper. Sakuu's process, under development for years, uses additive manufacturing to lay down key battery components without solvents, eliminating the need for ovens, says Niestroj.

Sakuu is currently working to commercialize this tech with a major battery manufacturer...

Linux

After Six Years Of Work and Over 360 Patches, Linux 7.2 Finally Removes Bug-Prone strncpy (techtimes.com) 39

Tech Times reports: Linux 7.2's merge window closed out a cleanup campaign on Friday that most kernel developers had stopped expecting to see end: the complete removal of strncpy(), a C string-copy function that the kernel's own documentation labels "actively dangerous," from every subsystem, driver, and architecture-specific file in the kernel source tree.

The merge landed June 20, 2026. After around 362 commits spread across six years of incremental work, no call site using the function remained, and the function itself — including the last per-CPU-architecture optimized implementations — was struck from the source. The removal matters beyond housekeeping. strncpy() is a persistent source of a specific class of memory error: kernel buffers that contain sensitive data can leak bytes past an unterminated string boundary, a pattern that enables memory disclosure vulnerabilities. Eliminating the function from the tree removes that entire class from the kernel's attack surface — and, critically, makes strncpy() unavailable to any future contributor, turning a best-practice suggestion into an enforced policy.

Phoronix notes it's replaced by five different functions: In place of strncpy, Linux kernel code should use strscpy() for NUL terminated destinations, strscpy_pad() for NUl-terminated destinations with zero-padding, strtomem_pad() for non-NUL-terminated fixed-width fields, memcpy_and_pad() for bounded copies with explicit padding, or memcpy() for known-length memory copies.
"The reason five functions were needed," explains Tech Times, "is that different parts of the kernel were using strncpy() for five semantically distinct memory operations — each with a different intent, different termination requirement, and different padding behavior. " The original function obscured all of those differences under a single ambiguous name. The 362-commit campaign to replace it was, in effect, a codebase-wide audit that forced every call site to declare its actual intent in code That is an engineering outcome with lasting value: the kernel's string-handling semantics are now explicit where they were previously implicit, and future maintainers can read a function name and understand what a copy operation actually does.
Government

US Bill Would Mandate AI Chip Location Tracking to Thwart China and Other Adversaries (nbcnews.com) 50

NBC News reports: A group of companies that specialize in tracking international shipments of sensitive technologies is backing a Capitol Hill bill that would require America's most powerful AI chips to incorporate stronger security mechanisms aimed at preventing the chips from reaching China and other adversaries. The letter, signed by six companies, says the Chip Security Act (CSA) would increase American chip companies' competitiveness and close key loopholes in the U.S. export control regime.

The move clashes with claims from semiconductor lobbying groups that the requirements would constrain America's booming chip industry. Sent to congressional leadership Thursday morning and seen by NBC News, the dispatch instead argues that more robust security verification would assure chip customers and manufacturers that they are abiding by sensitive restrictions on chip sales. The companies argue that the boosted confidence will "lead to increased sales, faster export approvals, larger transactions, greater access to new markets, and more expansive chip deals."

Despite U.S. export control laws banning sales of advanced AI chips to certain countries, including China, loopholes in current requirements have allowed billions of dollars' worth of America's best AI chips to be sold to entities in third-party countries that can then forward them to China. In just one case in March, the Justice Department charged three people with conspiring to forward $2.5 billion of AI chips to China. The CSA aims to address those loopholes, mandating that chip exporters better track where advanced chips are sent, via either bespoke location-verification hardware or software that can run on existing hardware. That, bill proponents claim, would ensure that sensitive chips could be sold to countries like Malaysia or Indonesia without fear of further transfer to China... Experts say that because chips perform the advanced computations required for frontier AI systems, cutting off access to the chips is crucial to prevent geopolitical rivals from using AI systems for military or economic purposes.

AI

New Super PAC Aims to Rally Tech Workers to Help Limit AI: 'the Guardrails Alliance' (techcrunch.com) 40

"A grassroots movement is forming among everyday tech workers who are demanding their companies develop and deploy AI responsibly," reports TechCrunch.

Hoping to leverage that discontent is a new super PAC called the Guardrails Alliance. The New York Times reports that it launched Thursday with backers that included tech employees and labor unions: Guardrails positions itself as a populist political movement that runs on small donations from people in the trenches of the AI boom. The PAC has about $5 million at its disposal today and planGuardrails will buy ads to support Alex Bores, a New York congressional candidate who became Leading the Future's first target and is running in the primaries next week. s to raise $15 million this cycle — small potatoes compared to deep-pocketed adversaries like Leading the Future, which has more than $100 million from tech leaders like OpenAI president Greg Brockman...

"This is not about matching [Leading the Future] dollar for dollar," [said the super PAC's co-founder, political operative Shaunna Thomas]. "What this vehicle is meant to do is be a political home for people who are concerned about the way the anti-regulation AI tech sector is trying to manipulate elections."

Meanwhile a former Netflix and Warner Bros. executive has launched the Alliance for Responsible Innovation in the Arts & Media, reports Variety, calling it an AI-focused content coalition that says it's dedicated to supporting "responsible and sustainable AI innovation and the importance of human creativity." The initial members of the coalition, announced Monday, include Disney, the New York Times, Adobe, Condé Nast, the Financial Times, ITV, Advance, BBC, Cambridge University Press & Assessment, U.K. publisher Reach and Wiley. Many of the coalition's members have either struck deals with AI companies or are developing their own AI tools... The group plans to argue for legal and policy guardrails around AI's usage, with its funding directed towards analyses, tools and services focused on advancing those initiatives...

One of the group's launch advisers is Damian Collins, OBE, who previously served as the U.K. Parliamentary Under-Secretary of State in the Department for Science, Innovation and Technology under prime ministers Boris Johnson and Liz Truss. "Using AI to break the law can never be an acceptable excuse," he said in a statement. "Laws around personal safety, intellectual property and financial crime still apply in the age of AI. This is why ARIAM has been created and why I'm proud to working with this necessary initiative."

Privacy

Facial Recognition on Public Buses? Kansas City Says Yes (apnews.com) 46

An anonymous reader shared this report from the Associated Press: Officials in Kansas City, Missouri, are preparing to equip cameras on some public buses with facial recognition software capable of identifying passengers who appear on a list of banned riders or missing persons. Supporters and opponents alike view the effort as a major litmus test for tapping the AI-powered software on a U.S. public transportation system, positioning Kansas City as the latest epicenter of a fierce debate over whether the safety benefits of artificial intelligence are worth the privacy costs.

"The idea of running face recognition on a camera that is pointed on live spaces in public is a line that until recently has never really been crossed in the last 25 years," said Jay Stanley, senior policy analyst for the Project on Speech, Privacy and Technology at the American Civil Liberties Union. The state of Missouri declined to help fund the project as expected due to concerns with the facial recognition component. Still, the city is pushing ahead with local and federal money, said Tyler Means, chief mobility and strategy officer at the Kansas City Transportation Authority. "Privacy is always a tricky thing," Means said. "We've always had cameras on our buses. It's just new technology. I think in time it'll smooth over and people will realize, 'Well, it didn't really feel any different'...."

Images captured by cameras aboard the buses would immediately be checked against any active alerts, generated when a missing person, banned rider or someone on a law enforcement watch list designated by the transportation authority is identified... After the buses return to the depot, the transportation authority would archive the regular video footage on a local server for up to five years.

The company partnering with Kansas City to run the cameras "started using live facial recognition years ago to alert nursing homes when residents left the building," according to the article, and then "brought the technology to correctional institutions and schools." But this is its first attempt at bringing its cameras onto public transportation.

The article also includes this quote from Will Owen, communications director for the Surveillance Technology Oversight Project. "City residents should not be guinea pigs for transit systems to test Silicon Valley's latest unproven, biased surveillance tech."
AI

Tech Pundit Cringely Co-Founds Startup '2Brains Inc' to Solve LLM Hallucinations (cringely.com) 56

Long-time tech pundit Robert Cringely started his career at the Stanford Artificial Intelligence Lab back in 1978. Last month 73-year-old Cringely explained why his site went on a two-year hiatus — and it's not just because of a heart attack and a stroke last July: Just like everyone else, I've been busy all this time on Artificial Intelligence, founding with two partners a company called 2Brains... The work we were doing together is unfinished, but it's not stopped. The patents are filed, the architecture is documented, and the small team continuing the work includes me.
Cringely's first piece made the cast that "the trillion-dollar bet the AI industry is making right now may be wrong, and that there's an architectural alternative we've patented and built." In Machines of Loving Grace, Amodei made the case that scaling compute would eventually solve essentially every hard problem in artificial intelligence. Buried in that optimism — or maybe not buried, maybe right out in the open — was a quiet absolution. Hallucinations, the embarrassing tendency of these systems to state falsehoods with total confidence, would take care of themselves. Make the models big enough, train them long enough, and the problem dissolves. You don't have to solve it. You just have to wait, and spend. And so the entire AI industry breathed a sigh of relief.

I have spent forty years watching this industry, and I know a permission slip when I see one.

Because that is what the essay became, whatever Amodei intended. It gave every other person writing nine- and ten-figure checks a reason not to worry about the one thing that should worry them most. The hallucination problem is the difference between a clever toy and a system a hospital or a bank or a court can actually rely on. It is the whole ballgame for enterprise AI. And the prevailing wisdom, blessed from the top, is that you needn't address it directly. Scale will provide...

A small company I helped start, 2Brains Inc., set out in 2022 to solve hallucinations — before ChatGPT, before the scaling consensus hardened into received truth, back when the polite assumption was that the problem was simply insurmountable. We did not solve it by waiting for bigger models. We solved it architecturally, by separating the part of the system that generates language from the part that retrieves and verifies facts, and reconciling the two before anything reaches the user. It runs on ordinary processors. It is cheap. And on the industry's own benchmark for this kind of faithfulness, it more than doubles the published baseline, with no fabricated facts in the verified case at all.

The article asks whether scaling will, at tremendous cost, eventually reduce hallucinations — or even worse, if the largest companies in the world "are spending a fortune chasing a cure that is not coming."

And last week Cringely pitched more advantages for their solution, noting that most prompts aren't even chatbot-level creative prompts — but just requests to retrieve simple data: The reason 2Brains doesn't lie and the reason it's cheap are the same reason. It looks the fact up instead of guessing it — so it cannot fabricate, and the lookup runs on a processor that sips power instead of a chip that gulps it. Trust and thrift are not a trade-off you balance against each other. They fall out of a single design decision. You do not pay extra for the honest version. The honest version is the cheap version. That sentence is the whole company.
Businesses

Amazon Retaliated Against Workers Who Supported Regulating Data Centers, Complaint Says (nytimes.com) 44

Three Amazon employees have filed a civil-rights complaint alleging the company retaliated against them for publicly supporting Seattle regulations on data centers. "The complaint was filed on the workers' behalf by Amazon Employees for Climate Justice, an independent group of corporate employees at Amazon that since 2018 has organized around climate issues," reports The New York Times. "It said the company started investigations and told the employees that they could face discipline, in one case up to potential termination, in an act of intimidation that violated the city's civil rights protections against discrimination for political beliefs." Amazon says it launched the internal investigations to determine whether the employees appeared to be speaking on the company's behalf rather than as private citizens. "As we looked more closely at how these employees represented themselves, and how their comments were received by others, it became clear that they may have been speaking in their capacity as Amazonians and not as private citizens," said an Amazon spokesperson. They said that the company does not allow retaliatory behavior and that when the investigation is concluded, Amazon "may or may not take action based on what we find." The New York Times reports: Five Amazon tech workers affiliated with Amazon Employees for Climate Justice testified at several different hearings before the Seattle City Council and two of its committees. Their testimony in the company's hometown drew national attention, and it put the tech giant in the awkward position of responding to public criticism of data centers and artificial intelligence from its own employees. Patrick Schloesser, who has worked as a software engineer at Amazon Web Services since 2020, said in an interview with The New York Times that Amazon told him he was under investigation last week, when he was called into a meeting with no notice. He had testified at two City Council hearings in early June. "I had this rising sense of anger that Amazon is attempting to infringe on my rights to speak out politically in my city," he said. "If we allow corporations to decide which speech is or is not allowed, that absolutely hurts democracy." [...]

[...] The Amazon employees testified that Seattle should consider conditions on allowing new data centers, such as requiring new renewable energy sources of power, banning the use of nondisclosure agreements between the city and developers, and limiting public subsidies. They offered to help create new rules based on their experience as tech workers. "Seattle needs to set the terms so the way any new data centers get built here actually moves us closer to the future we want," Darius Irani, who has worked as a software engineer in Amazon's grocery business since 2021, said at a June 3 hearing before the Council's Parks and City Light Committee. He suggested requiring public reporting of water and power use, banning shell companies and harnessing the heat emitted from the chips in data centers to warm nearby buildings.

Amazon told news organizations at the time that it respected 'our colleagues' right to voice their opinions and that the company did not have plans to build data centers within the city limits. On June 9, the Council unanimously voted for a one-year moratorium on new, large data centers in order to give it time to develop regulations. The next day, an Amazon employee relations staff member met the three workers in individual meetings and told them that they were under investigation for their testimony, according to the complaint. Mr. Irani said he was repeatedly questioned about his testimony and who else at Amazon was present at the hearings. "It feels like they say one thing publicly and try to silence and intimidate me privately, which I think is wrong," Mr. Irani said.

Cloud

EU To Soon Classify AWS and Azure As Gatekeepers Under DSA (heise.de) 39

The European Commission is reportedly preparing to provisionally classify Amazon Web Services and Microsoft Azure as "gatekeepers" under the Digital Markets Act, bringing cloud infrastructure under the law's stricter competition rules for the first time. The designation could require greater interoperability and data portability, making it easier for customers to switch providers, with a final decision expected by the end of 2026. Heise reports: This investigation began in November 2025, when the EU targeted the cloud power of US tech giants. The trigger was outages in cloud services with sometimes significant impacts on other internet services. Shortly before, an approximately 15-hour outage of the AWS cloud in the US meant that not only Amazon's own streaming services but also Atlassian, Docker, Epic Games, and the Signal messenger were unavailable or severely restricted. Shortly thereafter, Microsoft Azure also struggled with an outage, preventing air passengers from checking in and interrupting votes in the Scottish Parliament.

As a result, European antitrust authorities have also scrutinized cloud services under the Digital Markets Act for the first time. The major cloud providers, primarily from the US, have so far evaded the EU's Digital Markets Act because a large part of their business is handled through corporate contracts. This makes it difficult to determine the number of individual users. However, this is one of the EU's most important criteria for determining the market power of companies. [...] As gatekeepers, AWS and Azure would be obliged to ensure interoperability and data portability. This would, for example, simplify switching cloud providers and allow customers to link other services with AWS or Azure clouds, instead of being limited to AWS and Azure offerings. Significant fines could also be imposed if the cloud services are found to be in violation of existing regulations.

The Almighty Buck

California 'Billionaire Tax' Makes Ballot Despite Opposition From Tech Moguls (theguardian.com) 289

California's proposed "billionaire tax" has gathered enough signatures to qualify for the November ballot, setting up a major fight between labor unions and some of Silicon Valley's richest figures. From the report: The California Billionaire Tax Act, colloquially known as the billionaire tax, would levy a one-time 5% tax on any California resident worth more than $1bn. The proposal is backed by the Service Employees International Union-United Healthcare Workers West as a means of funding California's strained healthcare and education programs. The proposal has become one of the state's biggest political flashpoints as it gained momentum throughout the year, with prominent billionaires, such as the Google co-founder Larry Page, making moves to cut ties with the state and Newsom vowing to block it from going to a vote. Although it has gained enough signatures for the ballot, the groups backing the measure have until June 25 to decide whether to move forward or potentially strike a deal with the state.

While unions backing the group have framed the proposal as a way of getting the ultra-rich to pay their fair share, many of the state's tech elites have condemned the tax and spent millions attempting to crush it. The Google co-founder Sergey Brin has spent $82m alone on efforts to fight the tax, while joining other Silicon Valley billionaires in declaring he will leave California if it goes through. The Palantir co-founder Peter Thiel, crypto billionaire Chris Larsen and Ring founder James Siminoff are among the other tech moguls who have made huge political donations to groups opposing the tax. California has the most billionaires out of any state, many of whom have increased their wealth in recent years amid the AI boom.

AI

Midjourney Pivots From AI Image Generation To Body Scanning Medical Spa 25

Midjourney is expanding beyond AI image generation with plans for a medical-imaging business built around a water-based, full-body ultrasound scanner that uses hundreds of thousands of sensors and AI to reconstruct MRI-like images. "As you descend into the water, hundreds of thousands of tiny elements take turns, sending out waves, listening together, compressing and then streaming data to a massive cluster where thousands of computers split the task," Midjourney explained in the announcement. "By looking at how the shapes of all the waves change, we reconstruct a detailed map or 'image' which basically lets us figure out what's in there." The company hopes to open a San Francisco scanning "spa" in late 2027, with 50,000 or more deployed around the world by 2031. The Register reports: It's not clear how fast the process is with the prototype unit, but Midjourney said its goal is for the whole thing to take around a minute. "We think it's completely possible that with enough early imaging in the future, the world could avoid 30% of all deaths and 50% of all healthcare costs," the company added.

According to a "technical" video included in the announcement, there's a ring of 40 scanners included in the prototype unit the company has built. That ring of 40 elements contains 358,000 ultrasonic elements made up of tiny transducers that create ultrasound waves in water while listening for how they change when they slap the body of whoever is in Midjourney's dunk tank up to a thousand times a second.

[...] Midjourney said that it's planning to open its first ultrasound scanner spa at the end of 2027, but it has another hurdle to jump: FDA approval. Beyond improving its tech so that the second-generation scanner is ready for its 2027 spa date, "regulation is the next limit," the company said. "Normally, for every diagnostic medical capability you need FDA approval," Midjourney explained. "We're starting by just giving you detailed body composition maps -- and we'll be submitting regular test results to the FDA for increased capabilities."

Midjourney also fails to mention how it will store and secure those scans, whether it will use said scans to train its body composition-detection algorithms, and how it's ensuring those algorithms get things right that it usually take a human a few years of education and training to learn.
The Almighty Buck

Tim Cook Says Apple Price Increases Are 'Unavoidable' Due To Memory Costs (macrumors.com) 73

An anonymous reader quotes a report from MacRumors: Apple is raising its prices to offset the high cost of memory and storage, CEO Tim Cook told The Wall Street Journal. Apple is no longer able to absorb the increased prices and will need to pass some of the cost on to consumers. "Unfortunately, price increases are unavoidable," said Cook. "We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, but the situation has become unsustainable."

Growing demand for memory and storage chips from AI companies has led to chip shortages and higher costs. The Wall Street Journal suggests Apple will need to increase device costs "substantially" to maintain its current profit margins given the cost of memory chips and SSDs. Research firm TechInsights claims Apple will need to make the iPhone 18 Pro around $270 more expensive to keep its existing profit margin.

Apple is struggling more with memory chips, but storage chips are also an issue. "There's less supply at a time when consumers want devices and the memory guys are passing along huge price increases," Cook told The Wall Street Journal. Cook said Apple will use its cash to increase memory supply, but he did not give details on what that means. Apple does not plan to create its own memory and storage factories. "We can't do everything," Cook said. "We know what we're good at."
Cook likened the memory shortages to a hundred-year flood. "I've never seen anything like it in any area in over 40 years," he said.

Further reading: Smartphone Market To Shrink 15% This Year Due To Memory Crisis
Businesses

Tesco Moving 40,000 Server Workloads Off VMware Amid Broadcom's 'Abusive Conduct' (arstechnica.com) 65

An anonymous reader quotes a report from Ars Technica: Tesco, a retail conglomerate headquartered in the United Kingdom, is moving 40,000 server workloads off of VMware amid "abusive conduct" from Broadcom, recent legal filings claim. Tesco filed a lawsuit in the UK's High Court against Broadcom alleging breach of contract last year. According to a September report from The Register, the lawsuit claimed that in January 2021, Tesco bought perpetual licenses for VMware's vSphere Foundation and Cloud Foundation, a subscription to VMware Tanzu, plus support services until 2026, with the option to extend support for four additional years.

But when Broadcom took over VMware in November 2023, it would not honor the deal and instead tried to get Tesco to pay "excessive and inflated prices for virtualization software for which Tesco has already paid" and would not allow it to buy support services for its perpetually licensed software without buying "duplicative subscription-based licenses for those same Software products," the initial complaint read, The Register reported at the time. Tesco, which reported 73.7 billion pounds (about $98.7 billion) in revenue in its fiscal year 2026, has since started migrating away from VMware and Broadcom's mainframe products, according to late-May court filings reported on by The Register today.

In January, Broadcom stopped supporting Tesco's VMware products, Tesco said, and Tesco has been paying for third-party support since. In its initial filing, Tesco also said that Broadcom refused to upgrade software or provide all security updates to customers without subscriptions. One of Tesco's recent filings, per The Register, reads: "Faced with Broadcom's abusive conduct, and given the criticality of virtualization and mainframe software and services to its business, Tesco has been forced to incur material costs to procure alternative solutions with reduced functionality, and to migrate to that software in a manner, and on a timeframe, that creates very significant risks to its business."

If it works "at exceptional pace," Tesco will be completely off VMware by the end of 2027 at the earliest. However, "the timeframe in which that migration must be undertaken has created and continues to create operational and commercial risk, and at material ongoing cost and disruption to the business," Tesco reportedly noted. Tesco is also dealing with migration challenges related to data security because its new, unnamed virtualization software is incompatible with the Veeam and Zerto products it uses. Tesco initially requested at least 100 million pounds (about $133.6 million) in damages each from Broadcom, VMware, and reseller Computacenter, plus interest. In its recent filings, Tesco said it turned down at least four offers from Broadcom to continue using VMware and Broadcom's mainframe tech. [...] The case is expected to go to court between November 1, 2027, and February 25, 2028, The Register reported. Afterward, it could go to trial.
Further reading: HPE Tempts VMware Users, Partners With Year of Free Virtualization Software
Cellphones

Smartphone Market To Shrink 15% This Year Due To Memory Crisis (theregister.com) 55

CCS Insight expects global smartphone shipments to fall 15% this year as AI-driven demand pushes memory manufacturers toward higher-margin server chips. "[S]ome entry-level devices have already seen their sticker prices go up by more than 50 percent since last year," reports The Register. From the report: The firm found that the primary smartphone market (meaning new devices) contracted 4.4 percent in the first quarter of this year, despite sales channels front-loading (meaning stockpiling) product inventory, as device prices begin to rise sharply. As CCS notes, this casts an ominous shadow on the outlook for the rest of the year, and it seems things have worsened since The Register first started reporting on the smartphone memory woes.

Back in January, the forecast was for handset price rises of 6-8 percent, while the most pessimistic outlook was that the global market might contract as much as 5.2 percent. By February, analysts were expecting to see a decline in shipments of around 8 percent across the global market, and for prices to increase by about 14 percent.

The root cause of all this is the AI craze, which has seen huge demand for high-performance GPU-filled servers to process it all. Chipmakers have moved to capitalize on this by prioritizing production of high-margin memory components for those servers, rather than making the plain old DRAM and NAND needed for PCs and phones.
"The memory chip crisis shows no sign of slowing down in the near future, ramping up the pressure on manufacturers and consumers. Memory components now account for more than 30 percent of a manufacturer's bill of materials in some smartphones." said CCS research analyst Ben Hatton. "The full impact has yet to be felt in many regions, but it's clear that device prices will accelerate over the rest of the year."

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