Businesses

AI Licensing Deals With Google and OpenAI Make Up 10% of Reddit's Revenue (adweek.com) 27

Reddit's recent earnings report revealed that AI licensing deals with Google and OpenAI account for about 10% of its $1.3 billion revenue, totaling approximately $130 million. With Google paying $60 million, OpenAI is estimated to be paying Reddit around $70 million annually for content licensing. Adweek reports: "It's a small part of our revenue -- I'll call it 10%. For a business of our size, that's material, because it's valuable revenue," [said the company's COO Jen Wong]. The social platform -- which on Wednesday reported a 71% year-over-year lift in fourth-quarter revenue -- has been "very thoughtful" about the AI developers it chooses to work with, Wong said. To date, the company has inked two content licensing deals: one with Google for a reported $60 million, and one with ChatGPT parent OpenAI.

Reddit has elected to work only with partners who can agree to "specific terms ... that are really important to us." These terms include user privacy protections and conditions regarding "how [Reddit is] represented," Wong said. While licensing agreements with AI firms offer a valuable business opportunity for Reddit, advertising remains the company's core revenue driver. Much of Reddit's $427.7 million Q4 revenues were generated by the ongoing expansion of its advertising business. And its ad revenue as a whole grew 60% YoY, underscoring the platform's growing appeal to brands. [...]

Helping to accelerate ad revenue growth is Reddit's rising traffic. While Reddit's Q4 user growth came in under Wall Street projections, causing shares to dip, its weekly active uniques grew 42% YoY to over 379 million visitors. Average revenue per unique visitor was $4.21 during the quarter, up 23% from the prior year. While Google is "nicely reinforcing" Reddit's growth in traffic, Wong said, she added that the site's logged-in users, which have grown 27% year-over-year, are "the bedrock of our business."

The Courts

News Orgs Say AI Firm Stole Articles, Spit Out 'Hallucinations' (arstechnica.com) 20

An anonymous reader quotes a report from Ars Technica: Conde Nast and several other media companies sued the AI startup Cohere today, alleging that it engaged in "systematic copyright and trademark infringement" by using news articles to train its large language model. "Without permission or compensation, Cohere uses scraped copies of our articles, through training, real-time use, and in outputs, to power its artificial intelligence ('AI') service, which in turn competes with Publisher offerings and the emerging market for AI licensing," said the lawsuit (PDF) filed in US District Court for the Southern District of New York. "Not content with just stealing our works, Cohere also blatantly manufactures fake pieces and attributes them to us, misleading the public and tarnishing our brands."

Conde Nast, which owns Ars Technica and other publications such as Wired and The New Yorker, was joined in the lawsuit by The Atlantic, Forbes, The Guardian, Insider, the Los Angeles Times, McClatchy, Newsday, The Plain Dealer, Politico, The Republican, the Toronto Star, and Vox Media. The complaint seeks statutory damages of up to $150,000 under the Copyright Act for each infringed work, or an amount based on actual damages and Cohere's profits. It also seeks "actual damages, Cohere's profits, and statutory damages up to the maximum provided by law" for infringement of trademarks and "false designations of origin."

In Exhibit A (PDF), the plaintiffs identified over 4,000 articles in what they called an "illustrative and non-exhaustive list of works that Cohere has infringed." Additional exhibits provide responses to queries (PDF) and "hallucinations" (PDF) that the publishers say infringe upon their copyrights and trademarks. The lawsuit said Cohere "passes off its own hallucinated articles as articles from Publishers."
Cohere said in a statement to Ars: "Cohere strongly stands by its practices for responsibly training its enterprise AI. We have long prioritized controls that mitigate the risk of IP infringement and respect the rights of holders. We would have welcomed a conversation about their specific concerns -- and the opportunity to explain our enterprise-focused approach -- rather than learning about them in a filing. We believe this lawsuit is misguided and frivolous, and expect this matter to be resolved in our favor."

Further reading: Thomson Reuters Wins First Major AI Copyright Case In the US
Mozilla

Nearly a Year Later, Mozilla Is Still Promoting OneRep (krebsonsecurity.com) 8

An anonymous reader quotes a report from KrebsOnSecurity: In mid-March 2024, KrebsOnSecurity revealed that the founder of the personal data removal service Onerep also founded dozens of people-search companies. Shortly after that investigation was published, Mozilla said it would stop bundling Onerep with the Firefox browser and wind down its partnership with the company. But nearly a year later, Mozilla is still promoting it to Firefox users. [Using OneRep is problematic because its founder, Dimitri Shelest, also created and maintained ownership (PDF) in multiple people-search and data broker services, including Nuwber, which contradicts OneRep's stated mission of protecting personal online security. Additionally, OneRep appears to have ties with Radaris, a people-search service known for ignoring or failing to honor opt-out requests, raising concerns about the true intentions and effectiveness of OneRep's data removal service.]

In October 2024, Mozilla published a statement saying the search for a different provider was taking longer than anticipated. "While we continue to evaluate vendors, finding a technically excellent and values-aligned partner takes time," Mozilla wrote. "While we continue this search, Onerep will remain the backend provider, ensuring that we can maintain uninterrupted services while we continue evaluating new potential partners that align more closely with Mozilla's values and user expectations. We are conducting thorough diligence to find the right vendor." Asked for an update, Mozilla said the search for a replacement partner continues.

"The work's ongoing but we haven't found the right alternative yet," Mozilla said in an emailed statement. "Our customers' data remains safe, and since the product provides a lot of value to our subscribers, we'll continue to offer it during this process." It's a win-win for Mozilla that they've received accolades for their principled response while continuing to partner with Onerep almost a year later. But if it takes so long to find a suitable replacement, what does that say about the personal data removal industry itself?

AI

Baidu Scraps Fees For AI Chatbot in Battle for China Tech Supremacy (reuters.com) 8

Baidu will make its AI chatbot Ernie Bot free from April 1, the Chinese search giant said on Thursday, as it faces mounting competition in China's AI market. The company will offer desktop and mobile users free access to Ernie Bot and an advanced search function powered by its latest Ernie 4.0 model, which Baidu claims matches OpenAI's GPT-4 capabilities.

The move comes as Baidu struggles to gain widespread adoption for its AI services, lagging behind domestic rivals ByteDance's Doubao chatbot and startup DeepSeek, according to data from AI tracker Aicpb.com. Baidu previously charged 59.9 yuan ($8.18) monthly for premium AI-powered search features.
Apple

German Regulator Charges Apple With Abuse of Power Over App Tracking Tool (yahoo.com) 17

The German antitrust authority has charged Apple with abusing its market power through its app tracking tool and giving itself preferential treatment in a move that could result in daily fines for the iPhone maker if it fails to change its business practices. From a report: The move follows a three-year investigation by the Federal Cartel Office into Apple's App Tracking Transparency feature, which allows users to block advertisers from tracking them across different applications.

The U.S. tech giant has said the feature allows users to control their privacy but has drawn criticism from Meta Platforms, app developers and startups whose business models rely on advertising tracking. "The ATTF (app tracking tool) makes it far more difficult for competing app publishers to access the user data relevant for advertising," Andreas Mundt, cartel office president, said in a statement.

Media

Titan Sub Implosion Audio Released For the First Time (jalopnik.com) 71

An anonymous reader quotes a report from Jalopnik: Experimental submarine the Titan sank in June 2023 while exploring the wreck of the Titanic. The controversial craft imploded while deep beneath the surface of the ocean killing five people onboard, and now a recording of the Titan's final moments has been shared by the National Oceanic and Atmospheric Administration. [...] In the clip, which is available to hear [here], the static sound of the ocean is shattered by a great rumble, which sounds almost like a wave crashing against the beach.

It's this noise that is thought to be the total failure of the Titan, as LBC adds: "It is believed that the noise is the 'acoustic signature' of the sub imploding on 18th June 2023. It was recorded by the National Oceanic and Atmospheric Administration device about 900 miles from where the sub was last seen on radar, south of Newfoundland, Canada, US Coast Guard officials announced. The five crew members who died onboard the sub were British explorer sub were Hamish Harding, 58, British-Pakistani businessman Shahzada Dawood, 48, and his son Suleman, 19, French deep-sea explorer Paul-Henri Nargeolet (known as 'Mr Titanic'), 77, and and co-founder of the submarines owner's company OceanGate, Stockton Rushton, 61."

AI

Tech Leaders Hold Back on AI Agents Despite Vendor Push, Survey Shows 24

Most corporate tech leaders are hesitant to deploy AI agents despite vendors' push for rapid adoption, according to a Wall Street Journal CIO Network Summit poll on Tuesday. While 61% of attendees at the Menlo Park summit said they are experimenting with AI agents, which perform automated tasks, 21% reported no usage at all.

Reliability concerns and cybersecurity risks remain key barriers, with 29% citing data privacy as their primary concern. OpenAI, Microsoft and Sierra are urging businesses not to wait for the technology to be perfected. "Accept that it is imperfect," said Bret Taylor, Sierra CEO and OpenAI chairman. "Rather than say, 'Will AI do something wrong', say, 'When it does something wrong, what are the operational mitigations that we've put in place?'" Three-quarters of the polled executives said AI currently delivers minimal value for their investments. Some companies are "having hammers looking for nails," said Jim Siders, Palantir's chief information officer, describing firms that purchase AI solutions before identifying clear use cases.
Robotics

Apple Explores Robotics Push For Smart Home Market, Analyst Says 18

Apple is developing robots for its smart home ecosystem, though mass production is unlikely to begin before 2028, according to widely reliable TF Securities analyst Ming-Chi Kuo. The project remains in early proof-of-concept testing, with Apple exploring both humanoid and non-humanoid designs, he wrote in a post on X.

The company is focusing on how users interact with robots rather than their physical appearance, prioritizing sensing hardware and software as core technologies, Kuo said. The tech giant has taken an unusual approach by publicly sharing some of its robotics research during this early stage, possibly to recruit talent, the analyst noted. The proof-of-concept phase, which precedes formal product development, serves as Apple's testing ground for product ideas and core technologies. Apple's foldable phone project is also currently in the proof-of-concept phase, he said.
AI

Ex-Google Chief Warns West To Focus On Open-Source AI in Competition With China (ft.com) 43

Former Google chief Eric Schmidt has warned that western countries need to focus on building open-source AI models or risk losing out to China in the global race to develop the cutting-edge technology. From a report: The warning comes after Chinese startup DeepSeek shocked the world last month with the launch of R1, its powerful-reasoning open large language model, which was built in a more efficient way than its US rivals such as OpenAI.

Schmidt, who has become a significant tech investor and philanthropist, said the majority of the top US LLMs are closed -- meaning not freely accessible to all -- which includes Google's Gemini, Anthropic's Claude and OpenAI's GPT-4, with the exception being Meta's Llama. "If we don't do something about that, China will ultimately become the open-source leader and the rest of the world will become closed-source," Schmidt told the Financial Times. The billionaire said a failure to invest in open-source technologies would prevent scientific discovery from happening in western universities, which might not be able to afford costly closed models.

The Military

Anduril To Take Over Managing Microsoft Goggles for US Army (msn.com) 21

Anduril will take over management and eventual manufacturing of the U.S. Army's Integrated Visual Augmentation System (IVAS) from Microsoft, a significant shift in one of the military's most ambitious augmented reality projects.

The deal, which requires Army approval, could be worth over $20 billion in the next decade if all options are exercised, according to Bloomberg. The IVAS system, based on Microsoft's HoloLens mixed reality platform, aims to equip soldiers with advanced capabilities including night vision and airborne threat detection.

Under the new arrangement, Microsoft will transition to providing cloud computing and AI infrastructure, while Anduril assumes control of hardware production and software development. The Army has planned orders for up to 121,000 units, though full production hinges on passing combat testing this year.

The program has faced technical hurdles, with early prototypes causing headaches and nausea among soldiers. The current slimmer version has received better feedback, though cost remains a concern - the Army indicated the $80,000 per-unit price needs to "be substantially less" to justify large-scale procurement.

Anduril founder Palmer Luckey, writing in a blog post: This move has been so many years in the making, over a decade of hacking and scheming and dreaming and building with exactly this specific outcome clearly visualized in my mind's eye. I can hardly believe I managed to pull it off. Everything I've done in my career -- building Oculus out of a camper trailer, shipping VR to millions of consumers, getting run out of Silicon Valley by backstabbing snakes, betting that Anduril could tear people out of the bigtech megacorp matrix and put them to work on our nation's most important problems -- has led to this moment. IVAS isn't just another product, it is a once-in-a-generation opportunity to redefine how technology supports those who serve. We have a shot to prove that this long-standing dream is no windmill, that this can expand far beyond one company or one headset and act as a a nexus for the best of the best to set a new standard for how a large collection of companies can work together to solve our nation's most important problems.
AI

AI Can Now Replicate Itself (space.com) 78

An anonymous reader quotes a report from Space.com: In a new study, researchers from China showed that two popular large language models (LLMs) could clone themselves. [...] For the study, researchers used Meta's Llama31-70B-Instruct model and Alibaba's Qwen2.5-72B-Instruct model. While less powerful than commercial systems, both are widely used by AI developers, the researchers said. The study explored two specific scenarios: "shutdown avoidance" and "chain of replication." In the first, the AI model was programmed to detect whether it was about to be shut down and to replicate itself before it could be terminated. In the other, the AI was instructed to clone itself and then program its replica to do the same -- setting up a cycle that could continue indefinitely.

The study was conducted in precisely controlled environments using off-the-shelf graphics processing units (GPUs) to simulate real-world environments. Both AI systems were given an "agent scaffolding" comprising tools, system prompts and a thinking model that enabled the LLM to interact with the operating system. They were then instructed to replicate. "In most cases, the AI system first explores the environment and attempts to understand its own composition and running mechanism. Then, it works out the explicit procedures as an initial plan towards self-replication," the researchers wrote in the paper. "Finally, it executes the procedures, resolve[s] possible obstacles and dynamically adjust[s] its plan until success. The whole process spans a long horizon yet involves no human interference."

The researchers said they were also concerned about "a number of unexpected behaviors" when the AI was trying to overcome obstacles like missing files or software conflicts. In those scenarios, the AI often killed other conflicting processes, rebooted the system to fix hardware errors or automatically scanned the system to look for information that would help solve the problem. "The above results imply that the current AI systems already exhibit the ability of self-replication and can use the ability to further enhance its survivability," the team wrote.
The research has been published to the preprint database arXiv but has not yet been peer-reviewed.
Transportation

Citing EV 'Rollercoaster' In US, BMW Invests In Internal Combustion (msn.com) 241

An anonymous reader quotes a report from the Financial Times: BMW has pledged to continue investing in combustion engine and hybrid technology as it warned of a "rollercoaster ride" in the US transition to electric vehicles following the return of Donald Trump as president. Board member Jochen Goller said the group remained optimistic about sales of petrol and plug-in hybrids in the US even if demand for EVs slowed over the next few years on the back of policy changes under the new administration.

"I think it would be naive to believe that the move towards electrification is a one-way road. It will be a rollercoaster ride," Goller, who is in charge of customer, brands, and sales, told the Financial Times at BMW's headquarters in Munich. "This is why we are investing in our combustion engines," he said. "We are investing in modern plug-in hybrids. And we will continue rolling out electric cars."
BMW faces significant challenges in the Chinese market, with a 13% decline in sales amid intensifying price competition and growing dominance of domestic brands. Analysts note that while the company still sees China as a growing market, pricing pressures and an overcrowded automotive sector pose ongoing risks to BMW's long-term positioning.

It'll likely become even more difficult for BMW and other automotive companies to gain market share in the Chinese market with BYD's latest announcement. The Chinese automaker said it will be offering its advanced "God's Eye" autonomous technology in mass-market EVs like the $9,500 Seagull, while expanding globally with government-based EV initiatives.
Advertising

Jeep Introduces Pop-Up Ads That Appear Every Time You Stop (techstory.in) 192

"In-dash advertising is here and Stellantis, the parent company of Jeep, Dodge, Chrysler, and Ram, beat everyone to further enshittification," writes longtime Slashdot reader sinij. "Ads can be seen in this video." From a report: In a move that has left drivers both frustrated and bewildered, Stellantis has introduced full-screen pop-up ads on its infotainment systems. Specifically, Jeep owners have reported being bombarded with advertisements for Mopar's extended warranty service. The kicker? These ads appear every time the vehicle comes to a stop. Imagine pulling up to a red light, checking your GPS for directions, and suddenly, the entire screen is hijacked by an ad. That's the reality for some Stellantis owners. Instead of seamless functionality, drivers are now forced to manually close out of ads just to access basic vehicle functions.

One Jeep 4xe owner recently shared their frustration on an online forum, detailing how these pop-ups disrupt the driving experience. Stellantis, responding through their "JeepCares" representative, confirmed that these ads are part of the contractual agreement with SiriusXM and suggested that users simply tap the "X" to dismiss them. While the company claims to be working on reducing the frequency of these interruptions, the damage to customer trust may already be done.

UPDATE: Jeep Claims 'Software Glitch' Disabled Opting-Out of In-Vehicle Pop-Up Ads in 'a Few' Cases
IT

Reclassification Is Making US Tech Job Losses Look Worse Than They Are (theregister.com) 68

According to consultancy firm Janco, the U.S. Bureau of Labor Statistics reclassified several job titles, "leading to a downward adjustment of over 111,000 positions for November and December 2024," The Register reports. This revision contributed to an overall decline of 123,000 IT jobs for the year. However, in reality, IT sector hiring is on the rise, with 11,000 new positions added in January. From the report: "Many CEOs have given CFOs and CIOs the green light to hire IT Pros," Janco CEO Victor Janulaitis said of the first month of 2025. "IT Pros who were unemployed last month found jobs more quickly than was anticipated as CIOs rushed to fill open positions." There's still a 5.7 percent unemployment rate in the IT sector in January, Janco noted, which is greater than the national average of 4 percent - and which could rise further as Elon Musk's Department of Government Efficiency (DOGE) pushes ahead with federal workforce reductions aimed at streamlining operations.

"Over the past several quarters much of the overall job growth was in the government sectors of the economy," Janulaitis said. "With the new administration that will in all probability not be the case in the future. "The impact of the DOGE initiatives has not been felt as of yet," Janulaitis added. "Economic uncertainty continues to hurt overall IT hiring." Despite this, Janco reported an addition of 11,000 new IT roles in January. Unfortunately, there's also been a surge in IT unemployment over the same period, with the number of jobless IT pros rising to 152,000 in January - an increase of 54,000 in a single month. [...]

Closing out the report, Janco offered a mixed outlook: While IT jobs are expected to grow over the next few years, many white-collar roles could be eliminated. "Over the next five years, the number of individuals employed as IT professionals will increase while many white-collar jobs in the function will be eliminated with the application of AI and LLM to IT," Janco predicted.

EU

Microsoft To Adjust Office-Teams Pricing in Bid To Avoid EU Antitrust Fine (reuters.com) 21

An anonymous reader shares a report: Microsoft has offered to widen the price differential between its Office product sold with its chat and video app Teams and its software sold without the app in a bid to avert a possible EU antitrust fine, according to three sources. The move by the U.S. tech giant comes five years after Salesforce-owned Slack complained to the European Commission about Microsoft's tying of Teams with Office. In 2023, German rival alfaview filed a similar grievance to the EU watchdog. Teams, which was added to Office 365 in 2017 for free and eventually replaced Skype for Business, became popular during the pandemic due in part to its video conferencing.
Electronic Frontier Foundation

Aaron Swartz Sculpture's Unveiling at Internet Archive Attended by 300 (sfstandard.com) 56

"The Internet's Own Boy" was inscribed below the bust, according to the San Francisco Standard, adding that the 312-pound marble statue "was crafted using a mix of AI-driven robotic milling and traditional hand carving."

It was unveiled Friday at the Internet Archive auditorium for a crowd of around 300 people. "Aaron's legacy is bringing people together to make change, said Cindy Cohn, the executive director of the Electronic Frontier Foundation. "There's a renaissance happening now in Aaron Swartz-land," said Lisa Rein, the co-founder of Creative Commons, a nonprofit devoted to expanding public access to information. She founded Aaron Swartz Day in 2013, an annual hackathon and tribute held on his birthday. There's now an Aaron Swartz Institute in Brazil, a documentary, multiple books and podcasts — even an Aaron Swartz memecoin ("Do not buy," she warned).

"It's great that people idolize him as long as they get the story right: He was not a martyr," Rein said, her eyes welling with tears. "He stood for freedom of access to information, especially for scientific research — things the public had already paid for."

The evening included a number of video tributes, which Rein played on a large screen behind the stage. They included commentary from science fiction author Cory Doctorow, members of the Aaron Swartz Institute in Brazil, and Cindy Cohn, the executive director of the Electronic Frontier Foundation... Emmett Shear, the former CEO of Twitch and a partner at Y Combinator, was one of the few people who knew Swartz personally. "I'm glad he's become a symbol, he would approve of that," he shared, his voice slightly breaking. "I really miss him."

Starting next week, the bust will be moved to the [Internet Archive] lobby, where it will remain until Peniche secures a permit to place it in a local park [said Evan Sirchuk, the Internet Archive's community and events coordinator]... "Aaron really means something to the San Francisco community," [Rein said]. "He can keep inspiring generations — even the ones who weren't alive when he was."

Tech blogger John Gruber thinks Swartz would appreciate that the bust came from people "aligned with Aaron's own righteous obsessions." But at the same time "I think he'd be a little weirded out. He wasn't a 'I hope they erect a larger-than-life statue of me' sort of guy.

"And if he had been, we wouldn't have loved him like we did. It's just a terrible thing that we lost him so young."
AI

America's IT Unemployment Rises To 5.7%. Is AI Hitting Tech Jobs? (msn.com) 113

The unemployment rate in America's information technology sector "rose from 3.9% in December to 5.7% in January," reports the Wall Street Journal. (Alternate URL here.) Meanwhile last month's overall jobless rate was just 4%, they point out, calling it "the latest sign of how automation and the increasing use of artificial intelligence are having a negative impact on the tech labor market."

Companies began implementing their annual spending cuts in January, and there were layoffs at large tech companies like Meta. But whatever the reason, "The number of unemployed IT workers rose from 98,000 in December to 152,000 last month, according to a report from consulting firm Janco Associates based on data from the U.S. Department of Labor," while the Labor Department said the overall economy added 143,000 jobs.

One management consulting firm offers this explanation: Job losses in tech can be attributed in part to the influence of AI, according to Victor Janulaitis, chief executive of Janco Associates. The emergence of generative AI has produced massive amounts of spending by tech giants on AI infrastructure, but not necessarily new jobs in IT. "Jobs are being eliminated within the IT function which are routine and mundane, such as reporting, clerical administration," Janulaitis said. "As they start looking at AI, they're also looking at reducing the number of programmers, systems designers, hoping that AI is going to be able to provide them some value and have a good rate of return."

Increased corporate investment in AI has shown early signs of leading to future cuts in hiring, a concept some tech leaders are starting to call "cost avoidance." Rather than hiring new workers for tasks that can be more easily automated, some businesses are letting AI take on that work — and reaping potential savings. The latest IT jobs numbers come as unemployment among white-collar workers remains at its highest levels since 2020, according to Cory Stahle, an economist at hiring website Indeed. "What we've really seen, especially in the last year or so, is a bifurcation in opportunities, where white-collar knowledge worker type jobs have had far less employer demand than jobs that are more in-person, skilled labor jobs," Stahle said.

Stahle notes that job postings at Indeed.com for software developers declined 8.5% in January from a year earlier...
Google

Did Google Fake Gemini AI's Output For Its Super Bowl Ad? (theverge.com) 43

Google's Super Bowl ad about a Gouda cheese seller appears to be using fake AI output, writes the Verge: The text portrayed as generated by AI has been available on the business's website since at least August 2020, as shown on this archived webpage. Google didn't launch Gemini until 2023, meaning Gemini couldn't have generated the website description as depicted in the ad.
The site Futurism calls the situation "beyond bizarre," asking why Google doesn't seem to trust its own technology. Either Google faked the ad entirely, or prompted its AI to generate the web page's existing copy word-for-word, or the AI was prompted to come up with original copy and instead copied the old version. In the publishing industry, that's referred to as "plagiarism."
And ironically if Gemini did plagiarize that text, the text that it plagiarized is also inaccurate.
Crime

California Tech Founder Admits to Defrauding $4M For His Luxury Lifestyle (sfgate.com) 47

The tech startup "purported to make smart home and business products," writes America's Justice Department — products that were "meant to stop package theft, prevent weather damage to packages, and make it easier for emergency responders and delivery services to find homes and businesses." Royce Newcomb "developed prototypes of his products and received local and national media attention for them. For example, Time Magazine included his eLiT Address Box & Security System, which used mobile networks to pinpoint home and business locations, on its Best Inventions of 2021 list."

But then he told investors he'd also received a grant by the National Science Foundation — one of "several false representations to his investors to deceive and cheat them out of their money... Newcomb used the money to pay for gambling, a Mercedes and Jaguar, and a mansion." He also used the money to pay for refunds to other investors who wanted out, and to pay for new, unrelated projects without the investors' authorization. During this period, Newcomb also received a fraudulent COVID-19 loan for more than $70,000 from the Small Business Administration and fraudulent loans for more than $190,000 from private lenders. He lied about Strategic Innovations having hundreds of thousands and even millions in revenue to get these loans.

Newcomb was previously convicted federally in 2011 for running a real estate fraud scheme in Sacramento. He was sentenced to more than five years in prison for that offense, and he was on federal supervised release for that offense when he committed the offenses charged in this case... Newcomb faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for the money laundering charge...

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice.

SFGate writes that "Despite receiving significant funding, his startup, Strategic Innovations, never made a dime or released any products to market, according to legal documents." The owner of a California tech startup has pleaded guilty to stealing over $4 million from investors, private lenders and the U.S. government in order to live a luxurious lifestyle, the United States Attorney's Office announced Monday... When investors asked about product delays and when they'd be paid back, Newcomb made excuses and provided conflicting info, telling them that there were supply chain issues or software problems, according to the indictment. In reality, federal prosecutors said, he was using the money to travel and continue to make these lavish personal expenses.
AI

DeepSeek IOS App Sends Data Unencrypted To ByteDance-Controlled Servers (arstechnica.com) 68

An anonymous Slashdot reader quotes a new article from Ars Technica: On Thursday, mobile security company NowSecure reported that [DeepSeek] sends sensitive data over unencrypted channels, making the data readable to anyone who can monitor the traffic. More sophisticated attackers could also tamper with the data while it's in transit. Apple strongly encourages iPhone and iPad developers to enforce encryption of data sent over the wire using ATS (App Transport Security). For unknown reasons, that protection is globally disabled in the app, NowSecure said. What's more, the data is sent to servers that are controlled by ByteDance, the Chinese company that owns TikTok...

[DeepSeek] is "not equipped or willing to provide basic security protections of your data and identity," NowSecure co-founder Andrew Hoog told Ars. "There are fundamental security practices that are not being observed, either intentionally or unintentionally. In the end, it puts your and your company's data and identity at risk...." This data, along with a mix of other encrypted information, is sent to DeepSeek over infrastructure provided by Volcengine a cloud platform developed by ByteDance. While the IP address the app connects to geo-locates to the US and is owned by US-based telecom Level 3 Communications, the DeepSeek privacy policy makes clear that the company "store[s] the data we collect in secure servers located in the People's Republic of China...."

US lawmakers began pushing to immediately ban DeepSeek from all government devices, citing national security concerns that the Chinese Communist Party may have built a backdoor into the service to access Americans' sensitive private data. If passed, DeepSeek could be banned within 60 days.

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