Facebook

Meta Argues Enshittification Isn't Real (arstechnica.com) 67

An anonymous reader quotes a report from Ars Technica: Meta thinks there's no reason to carry on with its defense after the Federal Trade Commission closed its monopoly case, and the company has moved to end the trial early by claiming that the FTC utterly failed to prove its case. "The FTC has no proof that Meta has monopoly power," Meta's motion for judgment (PDF) filed Thursday said, "and therefore the court should rule in favor of Meta." According to Meta, the FTC failed to show evidence that "the overall quality of Meta's apps has declined" or that the company shows too many ads to users. Meta says that's "fatal" to the FTC's case that the company wielded monopoly power to pursue more ad revenue while degrading user experience over time (an Internet trend known as "enshittification"). And on top of allegedly showing no evidence of "ad load, privacy, integrity, and features" degradation on Meta apps, Meta argued there's no precedent for an antitrust claim rooted in this alleged harm.

"Meta knows of no case finding monopoly power based solely on a claimed degradation in product quality, and the FTC has cited none," Meta argued. Meta has maintained throughout the trial that its users actually like seeing ads. In the company's recent motion, Meta argued that the FTC provided no insights into what "the right number of ads" should be, "let alone" provide proof that "Meta showed more ads" than it would in a competitive market where users could easily switch services if ad load became overwhelming. Further, Meta argued that the FTC did not show evidence that users sharing friends-and-family content were shown more ads. Meta noted that it "does not profit by showing more ads to users who do not click on them," so it only shows more ads to users who click ads.

Meta also insisted that there's "nothing but speculation" showing that Instagram or WhatsApp would have been better off or grown into rivals had Meta not acquired them. The company claimed that without Meta's resources, Instagram may have died off. Meta noted that Instagram co-founder Kevin Systrom testified that his app was "pretty broken and duct-taped" together, making it "vulnerable to spam" before Meta bought it. Rather than enshittification, what Meta did to Instagram could be considered "a consumer-welfare bonanza," Meta argued, while dismissing "smoking gun" emails from Mark Zuckerberg discussing buying Instagram to bury it as "legally irrelevant." Dismissing these as "a few dated emails," Meta argued that "efforts to litigate Mr. Zuckerberg's state of mind before the acquisition in 2012 are pointless."

"What matters is what Meta did," Meta argued, which was pump Instagram with resources that allowed it "to 'thrive' -- adding many new features, attracting hundreds of millions and then billions of users, and monetizing with great success." In the case of WhatsApp, Meta argued that nobody thinks WhatsApp had any intention to pivot to social media when the founders testified that their goal was to never add social features, preferring to offer a simple, clean messaging app. And Meta disputed any claim that it feared Google might buy WhatsApp as the basis for creating a Facebook rival, arguing that "the sole Meta witness to (supposedly) learn of Google's acquisition efforts testified that he did not have that worry."
In sum: A ruling in Meta's favor could prevent a breakup of its apps, while a denial would push the trial toward a possible order to divest Instagram and WhatsApp.
Verizon

Verizon Secures FCC Approval for $9.6 Billion Frontier Acquisition (variety.com) 22

The Federal Communications Commission has approved Verizon's $9.6 billion acquisition of Frontier Communications, valuing the Dallas-based company at $20 billion including debt. The approval comes after Verizon agreed to scale back diversity initiatives to comply with Trump administration policies.

FCC Chairman Brendan Carr, who previously threatened to block mergers over DEI practices, praised the deal for its potential to "unleash billions in new infrastructure builds" and "accelerate the transition away from old, copper line networks to modern, high-speed ones." The acquisition positions America's largest phone carrier to expand its high-speed internet footprint across Frontier's 25-state network. Verizon plans to deploy fiber to more than one million U.S. homes annually following the transaction.
Apple

Vision Pro Owners Face Weight of Buyer's Remorse (wsj.com) 120

Early adopters of Apple's $3,500 Vision Pro mixed-reality headset report widespread disappointment a year after its February 2024 launch, with many devices now unused due to physical discomfort and social awkwardness, according to customers who spoke with WSJ.

"It's just collecting dust," said Dustin Fox, a Virginia realtor who has used his headset only four times in the past year. "It's way too heavy. I can't wear it for more than 20 or 30 minutes without it hurting my neck." Customers told the paper that the device's one-pound weight causes neck strain. The device is also reeling from limited app selection and negative public reactions as primary complaints.
Facebook

Do You Trust Mark Zuckerberg To Solve Your Loneliness With an 'AI Friend'? 106

An anonymous reader shares an opinion piece from The Guardian, written by columnist Emma Brockes: Mark Zuckerberg has gone on a promotional tour to talk up the potential of AI in human relationships. I know; listening to Zuck on friendship is a bit like taking business advice from Bernie Madoff or lessons in sportsmanship from Tonya Harding. But at recent tech conferences and on podcasts, Zuck has been saying he has seen the future and it's one in which the world's "loneliness epidemic" is alleviated by people finding friendship with "a system that knows them well and that kind of understands them in the way that their feed algorithms do." In essence, we'll be friends with AI, instead of people. The missing air quotes around "knows" and "understands" is a distinction we can assume Zuck neither knows nor understands.

This push by the 41-year-old tech leader would be less startling if it weren't for the fact that semi-regularly online now you can find people writing about their relationships with their AI therapist or chatbot and insisting that if it's real to them, then it's real, period. The chatbot is, they will argue, "actively" listening to them. On a podcast with Dwarkesh Patel last month Zuck envisaged a near-future in which "you'll be scrolling through your feed, and there will be content that maybe looks like a Reel to start, but you can talk to it, or interact with it and it talks back." The average American, he said, has fewer than three friends but needs more. Hey presto, a ready solution.

The problem, obviously, isn't that chatting to a bot gives the illusion of intimacy, but that, in Zuckerberg's universe, it is indistinguishable from real intimacy, an equivalent and equally meaningful version of human-to-human contact. If that makes no sense, suggests Zuck, then either the meaning of words has to change or we have to come up with new words: "Over time," says Zuckerberg, as more and more people turn to AI friends, "we'll find the vocabulary as a society to be able to articulate why that is valuable." ... The sheer wrongness of this argument is so stark that it puts anyone who gives it more than a moment's thought in the weird position of having to define units of reality as basic as "person." To extend Zuckerberg's logic: a book can make you feel less alone and that feeling can be real. Which doesn't mean that your relationship with the author is genuine, intimate or reciprocated in anything like the way a relationship with your friends is.
Advertising

Netflix Will Show Generative AI Ads Midway Through Streams In 2026 (arstechnica.com) 62

At its second annual Upfront 2025 event yesterday, Netflix announced that it has created interactive mid-roll ads and pause ads that incorporate generative AI. These new ad formats are expected to roll out in 2026. Ars Technica reports: "[Netflix] members pay as much attention to midroll ads as they do to the shows and movies themselves," Amy Reinhard, president of advertising at Netflix, said. Netflix started testing pause ads in July 2024, per The Verge. Speaking to advertisers, Reinhard claimed that ad subscribers spend 41 hours per month on Netflix on average. The new ad formats follow Netflix's launch of its own in-house advertising platform in the US in April. It had previously debuted the platform in Canada and plans to expand it globally by June, per The Verge.

Netflix considers its advertising business to be in its early stages, meaning customers can expect the firm's ad efforts to continue expanding at a faster rate over the coming years. The company plans to double its advertising revenue in 2025. "The foundations of our ads business are in place, and going forward, the pace of progress will be even faster," Reinhard said today.
Further reading: Netflix Says Its Ad Tier Now Has 94 Million Monthly Active Users
AI

Meta Delays 'Behemoth' AI Model Release (axios.com) 8

According to the Wall Street Journal (paywalled), Meta is delaying the release of its largest Llama 4 AI model, known as "Behemoth," over concerns that it may not be enough of an advance on previous models. "It's another indicator that the AI industry's scaling strategy -- 'just make everything bigger' -- could be hitting a wall," notes Axios. From the report: The Journal says that Behemoth is now expected to be released in the fall or even later. It was originally scheduled to coincide with Meta's Llamacon event last month, then later postponed till June. It's also possible the company could speed up a more limited Behemoth release.
Android

Google Restores File Permissions For Nexcloud (nextcloud.com) 11

Longtime Slashdot reader mprindle writes: Nextcloud has been in an ongoing battle with Google over the tech giant revoking the All Files permission from the Nextcloud Android App, which prevents users from managing their files on their server. After a blog post and several tech sites reported on the issue, "Google reached out to us [Nexcloud] and offered to restore the permission, which will give users back the functionality that was lost." Nextcloud is working on an app update and hopes to have it pushed out within a week.
Crime

Telegram Bans $35 Billion Black Markets Used To Sell Stolen Data, Launder Crypto (arstechnica.com) 2

An anonymous reader quotes a report from Ars Technica: On Thursday, Telegram announced it had removed two huge black markets estimated to have generated more than $35 billion since 2021 by serving cybercriminals and scammers. Blockchain research firm Elliptic told Reuters that the Chinese-language markets Xinbi Guarantee and Huione Guarantee together were far more lucrative than Silk Road, an illegal drug marketplace that the FBI notoriously seized in 2013, which was valued at about $3.4 billion. Both markets were forced offline on Tuesday, Elliptic reported, and already, Huione Guarantee has confirmed that its market will cease to operate entirely due to the Telegram removal.

The disruption of both markets will be "a big blow for online fraudsters," Elliptic confirmed, cutting them off from a dependable source for "stolen data, money laundering services, and telecoms infrastructure." [...] Elliptic reported that Telegram connected black markets with an audience of a billion users, noting that Telegram tried to remove several Huione Guarantee channels earlier this year, but "the marketplace was ready" with backups and remained online until this week. Wired suggested that Huione Guarantee "operated in plain sight" on Telegram for years. But Telegram suggested it just discovered it.
Huione Guarantee is a subsidiary of Huione Group, which was recently sanctioned by the U.S. Treasury for supporting "criminal syndicates who have stolen billions of dollars from Americans." According to Reuters, that included allegedly laundering "at least $37 million in crypto from cyber heists by North Korea and $36 million of crypto from so-called 'pig butchering' scams."
Transportation

Uber Expects More Drivers Amid Robotaxi Push 40

Uber's autonomous vehicle chief Andrew Macdonald predicted this week that the company will employ more human drivers in a decade despite aggressively expanding robotaxi operations. Speaking at the Financial Times' Future of the Car conference, Macdonald outlined a "hybrid marketplace" where autonomous vehicles dominate city centers while human drivers serve areas beyond robotaxi coverage, handle airport runs, and respond during extreme weather events.

"I am almost certain that there will be more Uber drivers in 10 years, not less, because I think the world will move from individual car ownership to mobility as a service," Macdonald said. The ride-hailing giant has struck partnerships with Waymo, Volkswagen, Wayve, WeRide, and Pony AI. Robotaxis are already operational in Austin and Phoenix, with CEO Dara Khosrowshahi claiming Waymo vehicles in Austin are busier than "99%" of human drivers.
Open Source

Microsoft Is Open-Sourcing Its Linux Integration Services Automation Image-Testing Service (zdnet.com) 22

An anonymous reader quotes a report from ZDNet: Would you believe Microsoft has announced a new Linux distribution service for its Azure cloud service? You should. For many years, the most popular operating system on Azure has not been Windows Server, it's been Linux. Last time I checked, in 2024, Azure Linux Platforms Group Program Manager Jack Aboutboul told me that 60% of Azure Marketplace offerings and more than 60% of virtual machine cores use Linux. Those figures mean it's sensible for Microsoft to make it easier than ever for Linux distributors to release first-class Linux distros on Azure. The tech giant is taking this step, said Andrew Randall, principal manager for the Azure Core Linux product management team, by making "Azure Image Testing for Linux (AITL) available 'as a service' to distro publishers."

ATIL is built on Microsoft's Linux Integration Services Automation project (LISA). Microsoft's Linux Systems Group originally developed this initiative to validate Linux OS images. LISA is a Linux quality validation system with two parts: a test framework to drive test execution and a set of test suites to verify Linux distribution quality. LISA is now open-sourced under the MIT License. The system enables continuous testing of Linux images, covering a wide range of scenarios from kernel updates to complex cloud-native workloads. [...] Specifically, the ATIL service is designed to streamline the deployment, testing, and management of Linux images on Azure. The service builds on the company's internal expertise and open-source tools to provide:

- Curated, Azure-optimized, security-hardened Linux images
- Automated quality assurance and compliance testing for Linux distributions
- Seamless integration with Azure's cloud-native services and Kubernetes environments
Krum Kashan, Microsoft Azure Linux Platforms Group program manager, said in a statement: "While numerous testing tools are available for validating Linux kernels, guest OS images, and user space packages across various cloud platforms, finding a comprehensive testing framework that addresses the entire platform stack remains a significant challenge. A robust framework is essential, one that seamlessly integrates with Azure's environment while providing coverage for major testing tools, such as LTP and kselftest, and covers critical areas like networking, storage, and specialized workloads, including Confidential VMs, HPC, and GPU scenarios. This unified testing framework is invaluable for developers, Linux distribution providers, and customers who build custom kernels and images."
Businesses

Inflated Salaries Put Targets on Workers' Backs as Market Cools (msn.com) 100

Workers who secured substantial salary increases during the pandemic hiring frenzy are now confronting a stark reality: they're likely overpaid in today's cooling job market. According to new Korn Ferry data, two-thirds of U.S. workers believe they're compensated at or above their market value.

The tech sector has experienced significant wage deflation, with expanding pay transparency laws making market corrections impossible to ignore. Only 60% of recent job switchers received raises in Q1 2025, down from 73% just one quarter earlier.
Power

GM Says New Battery Chemistry Will Enable 400-Mile Range EVs (theverge.com) 137

General Motors is partnering with LG to develop lithium manganese-rich (LMR) batteries, which are safer, denser, and cheaper than current EV battery tech. The automaker aims to begin U.S. production by 2028 and become the first to deploy LMR cells in electric vehicles. Ford also announced it would start adopting LMR batteries for its EVs, but not until 2030. The Verge reports: GM's current crop of electric Chevys and Cadillacs use high-nickel batteries, which supply enough energy for around 300-320 miles of range. The new LMR batteries are denser, with greater space efficiency due to their prismatic shape, enabling up to 400 miles of range, GM says. Prismatic cells are packed flat in rigid cases and are generally thought to be less complex to manufacture than cylindrical cells. Less complexity and cheaper materials will hopefully lead to lower-cost EVs, which has been a significant challenge for the auto industry's shift to electric vehicles. "The EV growth rate is really dependent on how quickly we can bring the costs down over time," says GM's VP for batteries Kurt Kelty. "And this is the biggest lever we have. Batteries make up roughly 30 to 40 percent of the cost of vehicles. And if you can drop that down significantly like we're doing here, then it ends up being a lower cost to the consumer."
Crime

A Ripe Target For Identity Thieves: Prisoners on Death Row 77

Identity thieves have found an insidious target: death row inmates. A SentiLink report published this week reveals scammers are stealing identities of Texas prisoners awaiting execution to orchestrate "bust-out" fraud schemes -- patiently building credit before disappearing with up to $100,000.

Nearly 10% of Texas' 172 death row inmates have fallen victim. The operation, active since March 2023, exploits inmates' isolation from financial communications. "They wouldn't receive text or email alerts from a financial institution," said Robin Maher of the Death Penalty Information Center.

Beyond opening credit accounts, NBC reports, fraudsters have registered fake businesses using inmates' identities, including a landscaping company created under Ronald Haskell's name -- a man imprisoned since 2014 for killing six people. TransUnion estimates bust-out scams now cost banks $1 billion annually.
Communications

FCC Threatens EchoStar Licenses For Spectrum That's 'Ripe For Sharing' (arstechnica.com) 22

An anonymous reader quotes a report from Ars Technica: Federal Communications Commission Chairman Brendan Carr has threatened to revoke EchoStar licenses for radio frequency bands coveted by rival firms including SpaceX, which alleges that EchoStar is underutilizing the spectrum. "I have directed agency staff to begin a review of EchoStar's compliance with its federal obligations to provide 5G service throughout the United States per the terms of its federal spectrum licenses," Carr wrote in a May 9 letter to EchoStar Chairman Charles Ergen. EchoStar and its affiliates "hold a large number of FCC spectrum licenses that cover a significant amount of spectrum," the letter said.

Ergen defended his company's wireless deployment but informed investors that EchoStar "cannot predict with any degree of certainty the outcome" of the FCC proceedings. The letter from Carr and Ergen's statement is included in a Securities and Exchange Commission filing submitted by EchoStar today. EchoStar's stock price was down about 8 percent in trading today. EchoStar bought Dish Network in December 2023 and offers wireless service under the Boost Mobile brand. As The Wall Street Journal notes, the firm "has spent years wiring thousands of cellphone towers to help Boost become a wireless operator that could rival AT&T, Verizon and T-Mobile, but the project has been slow-going. Boost's subscriber base has shrunk in the five years since Ergen bought the brand from Sprint." [...]

EchoStar will have to prove its case in the two FCC proceedings. The FCC set a May 27 deadline for the first round of comments in both proceedings and a June 6 deadline for reply comments. The proceedings could result in the FCC letting other companies use the spectrum and other remedies. "In particular, we seek information on whether EchoStar is utilizing the 2 GHz band for MSS consistent with the terms of its authorizations and the Commission's rules and policies governing the expectation of robust MSS," the FCC Space Bureau's call for comments said. "We also seek comment on steps the Commission might take to make more intensive use of the 2 GHz band, including but not limited to allowing new MSS entrants in the band."
Last month, SpaceX urged the FCC to reallocate the spectrum, saying "the 2 GHz band remains ripe for sharing among next-generation satellite systems that seek to finally make productive use of the spectrum for consumers and first responders."

EchoStar countered that SpaceX's filing is "intended to cloak another land grab for even more free spectrum," and that its "methodology is completely nonsensical, given that EchoStar's terrestrial deployment is subject to population-based milestones that EchoStar has repeatedly demonstrated in status reports."
Android

Nextcloud Cries Foul Over Google Play Store App Rejection (theregister.com) 66

UPDATE: In an update to their blog post, "Nextcloud wrote that as of May 15, Google has offered to restore full file access permissions," reports Ars Technica.

Slashdot originally wrote that Nextcloud had accused Google of sabotaging its Android Files app by revoking the "All files access" permission, which the company said crippled functionality for its 824,000 users and forces reliance on limited alternatives like SAF and MediaStore. The Register reported: Nextcloud's Android Files app is a file synchronization tool that, according to the company, has long had permission to read and write all file types. "Nextcloud has had this feature since its inception in 2016," it said, "and we never heard about any security concerns from Google about it." That changed in 2024, when someone or something at Google's Play Store decided to revoke the permission, effectively crippling the application. Nextcloud was instructed to use "a more privacy-aware replacement." According to Nextcloud, "SAF cannot be used, as it is for sharing/exposing our files to other apps ... MediaStore API cannot be used as it does not allow access to other files, but only media files."

Attempts to raise the issue with Google resulted in little more than copy-and-pasted sections of the developer guide. "Despite multiple appeals from our side and sharing additional background, Google is not considering reinstating upload for all files," Nextcloud said. The issue seems to stem from the Play Store. While a fully functional version is available on F-Droid, the Play Store edition is subject to Google's imposed limitations. Regarding the All files access permission, Google's developer documentation states: "If you target Android 11 and declare All files access, it can affect your ability to publish and update your app on Google Play."

Nextcloud is clearly aggrieved by the change, as are its users. "This might look like a small technical detail but it is clearly part of a pattern of actions to fight the competition," it said. "What we are experiencing is a piece of the script from the big tech playbook." [...] Are there nefarious actors at play here, an automated process that auto-rejects apps with elevated access requirements, or is it just simple incompetence? "Either way," Nextcloud said, "it results in companies like ours just giving up, reducing functionality just to avoid getting kicked out of their app store."

"The issue is that small companies -- like ours -- have pretty much no recourse," it added. Nextcloud went on to criticize oversight processes as slow-moving, with fines that sound hefty but amount to little more than a slap on the wrist. "Big Tech is scared that small players like Nextcloud will disrupt them, like they once disrupted other companies. So they try to shut the door."

Microsoft

Office Apps on Windows 10 No Longer Tied To October 2025 End-of-Support Date 26

Microsoft has quietly extended support for Office applications running on Windows 10 well beyond the operating system's October 14, 2025 end-of-support deadline. Microsoft 365 subscribers will now receive updates through October 2028, while perpetual license versions will follow their standard lifecycle policies -- Office 2021 until October 2026 and Office 2024 until October 2029.

Windows Defender malware definitions will also continue "through at least October 2028" despite Windows 10's imminent retirement. This reverses Microsoft's previous stance that all Office applications would become unsupported when Windows 10 reaches end-of-life.
Cloud

The Stealthy Lab Cooking Up Amazon's Secret Sauce (msn.com) 8

Amazon's decade-old acquisition of Annapurna Labs has emerged as a pivotal element in its AI strategy, with the once-secretive Israeli chip design startup now powering AWS infrastructure. The $350 million deal, struck in 2015 after initial talks between Annapurna co-founder Nafea Bshara and Amazon executive James Hamilton, has equipped the tech giant with custom silicon capabilities critical to its cloud computing dominance.

Annapurna's chips, particularly the Trainium processor for AI model training and Graviton for general-purpose computing, now form the foundation of Amazon's AI infrastructure. The company is deploying hundreds of thousands of Trainium chips in its Project Rainier supercomputer being delivered to AI startup Anthropic this year. Amazon CEO Andy Jassy, who led AWS when the acquisition occurred, described it as "one of the most important moments" in AWS history.
United Kingdom

Creatives Demand AI Comes Clean On What It's Scraping 60

Over 400 prominent UK media and arts figures -- including Paul McCartney, Elton John, and Ian McKellen -- have urged the prime minister to support an amendment to the Data Bill that would require AI companies to disclose which copyrighted works they use for training. The Register reports: The UK government proposes to allow exceptions to copyright rules in the case of text and data mining needed for AI training, with an opt-out option for content producers. "Government amendments requiring an economic impact assessment and reports on the feasibility of an 'opt-out' copyright regime and transparency requirements do not meet the moment, but simply leave creators open to years of copyright theft," the letter says.

The group -- which also includes Kate Bush, Robbie Williams, Tom Stoppard, and Russell T Davies -- said the amendments tabled for the Lords debate would create a requirement for AI firms to tell copyright owners which individual works they have ingested. "Copyright law is not broken, but you can't enforce the law if you can't see the crime taking place. Transparency requirements would make the risk of infringement too great for AI firms to continue to break the law," the letter states.
Baroness Kidron, who proposed the amendment, said: "How AI is developed and who it benefits are two of the most important questions of our time. The UK creative industries reflect our national stories, drive tourism, create wealth for the nation, and provide 2.4 million jobs across our four nations. They must not be sacrificed to the interests of a handful of US tech companies." Baroness Kidron added: "The UK is in a unique position to take its place as a global player in the international AI supply chain, but to grasp that opportunity requires the transparency provided for in my amendments, which are essential to create a vibrant licensing market."

The letter was also signed by a number of media organizations, including the Financial Times, the Daily Mail, and the National Union of Journalists.
Google

Google Developing Software AI Agent 9

An anonymous reader shares a report: After weeks of news about Google's antitrust travails, the tech giant will try to reset the narrative next week by highlighting advances it is making in artificial intelligence, cloud and Android technology at its annual I/O developer conference.

Ahead of I/O, Google has been demonstrating to employees and outside developers an array of different products, including an AI agent for software development. Known internally as a "software development lifecycle agent," it is intended to help software engineers navigate every stage of the software process, from responding to tasks to documenting code, according to three people who have seen demonstrations of the product or been told about it by Google employees. Google employees have described it as an always-on coworker that can help identify bugs to fix or flag security vulnerabilities, one of the people said, although it's not clear how close it is to being released.
Government

US Copyright Office to AI Companies: Fair Use Isn't 'Commercial Use of Vast Troves of Copyrighted Works' (yahoo.com) 214

Business Insider tells the story in three bullet points:

- Big Tech companies depend on content made by others to train their AI models.

- Some of those creators say using their work to train AI is copyright infringement.

- The U.S. Copyright Office just published a report that indicates it may agree.

The office released on Friday its latest in a series of reports exploring copyright laws and artificial intelligence. The report addresses whether the copyrighted content AI companies use to train their AI models qualifies under the fair use doctrine. AI companies are probably not going to like what they read...

AI execs argue they haven't violated copyright laws because the training falls under fair use. According to the U.S. Copyright Office's new report, however, it's not that simple. "Although it is not possible to prejudge the result in any particular case, precedent supports the following general observations," the office said. "Various uses of copyrighted works in AI training are likely to be transformative. The extent to which they are fair, however, will depend on what works were used, from what source, for what purpose, and with what controls on the outputs — all of which can affect the market."

The office made a distinction between AI models for research and commercial AI models. "When a model is deployed for purposes such as analysis or research — the types of uses that are critical to international competitiveness — the outputs are unlikely to substitute for expressive works used in training," the office said. "But making commercial use of vast troves of copyrighted works to produce expressive content that competes with them in existing markets, especially where this is accomplished through illegal access, goes beyond established fair use boundaries."

The report says outputs "substantially similar to copyrighted works in the dataset" are less likely to be considered transformative than when the purpose "is to deploy it for research, or in a closed system that constrains it to a non-substitutive task."

Business Insider adds that "A day after the office released the report, President Donald Trump fired its director, Shira Perlmutter, a spokesperson told Business Insider."

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