AI

FTC Chair: AI Models Could Violate Antitrust Laws (thehill.com) 42

An anonymous reader quotes a report from The Hill: Federal Trade Commission (FTC) Chair Lina Khan said Wednesday that companies that train their artificial intelligence (A) models on data from news websites, artists' creations or people's personal information could be in violation of antitrust laws. At The Wall Street Journal's "Future of Everything Festival," Khan said the FTC is examining ways in which major companies' data scraping could hinder competition or potentially violate people's privacy rights. "The FTC Act prohibits unfair methods of competition and unfair or deceptive acts or practices," Khan said at the event. "So, you can imagine, if somebody's content or information is being scraped that they have produced, and then is being used in ways to compete with them and to dislodge them from the market and divert businesses, in some cases, that could be an unfair method of competition."

Khan said concern also lies in companies using people's data without their knowledge or consent, which can also raise legal concerns. "We've also seen a lot of concern about deception, about unfairness, if firms are making one set of representations when you're signing up to use them, but then are secretly or quietly using the data you're feeding them -- be it your personal data, be it, if you're a business, your proprietary data, your competitively significant data -- if they're then using that to feed their models, to compete with you, to abuse your privacy, that can also raise legal concerns," she said.

Khan also recognized people's concerns about companies retroactively changing their terms of service to let them use customers' content, including personal photos or family videos, to feed into their AI models. "I think that's where people feel a sense of violation, that that's not really what they signed up for and oftentimes, they feel that they don't have recourse," Khan said. "Some of these services are essential for navigating day to day life," she continued, "and so, if the choice -- 'choice' -- you're being presented with is: sign off on not just being endlessly surveilled, but all of that data being fed into these models, or forego using these services entirely, I think that's a really tough spot to put people in." Khan said she thinks many government agencies have an important role to play as AI continues to develop, saying, "I think in Washington, there's increasingly a recognition that we can't, as a government, just be totally hands off and stand out of the way."
You can watch the interview with Khan here.
Encryption

Signal Slams Telegram's Security (techcrunch.com) 33

Messaging app Signal's president Meredith Whittaker criticized rival Telegram's security on Friday, saying Telegram founder Pavel Durov is "full of s---" in his claims about Signal. "Telegram is a social media platform, it's not encrypted, it's the least secure of messaging and social media services out there," Whittaker told TechCrunch in an interview. The comments come amid a war of words between Whittaker, Durov and Twitter owner Elon Musk over the security of their respective platforms. Whittaker said Durov's amplification of claims questioning Signal's security was "incredibly reckless" and "actually harms real people."

"Play your games, but don't take them into my court," Whittaker said, accusing Durov of prioritizing being "followed by a professional photographer" over getting facts right about Signal's encryption. Signal uses end-to-end encryption by default, while Telegram only offers it for "secret chats." Whittaker said many in Ukraine and Russia use Signal for "actual serious communications" while relying on Telegram's less-secure social media features. She said the "jury is in" on the platforms' comparative security and that Signal's open source code allows experts to validate its privacy claims, which have the trust of the security community.
Australia

Australia Takes Singtel-owned Optus To Court Over 2022 Cyber Attack (reuters.com) 3

Australia's media regulator is taking legal action against telecom carrier Optus, owned by Singapore Telecommunications, over a cyber attack it faced in September 2022, the telecom operator said on Wednesday. From a report: Australia's No.2 telco, had in September 2022 faced a massive data breach which exposed customers' personal information, including home addresses, passport and phone numbers. Following the incident, the country's Prime Minister Anthony Albanese called for tougher privacy rules to force companies to notify banks faster when they experience similar data breaches.

About 10 million Australians, 40% of the population, are Optus customers and could not use smartphones, broadband internet or landlines for much of the day of the breach. The Australian Communications and Media Authority is alleging that Optus Mobile failed to protect the confidentiality of personally identifiable information of its customers from unauthorised interference or unauthorised access.

Facebook

Mark Zuckerberg Assembles Team of Tech Execs For AI Advisory Council (qz.com) 17

An anonymous reader quotes a report from Quartz: Mark Zuckerberg has assembled some of his fellow tech chiefs into an advisory council to guide Meta on its artificial intelligence and product developments. The Meta Advisory Group will periodically meet with Meta's management team, Bloomberg reported. Its members include: Stripe CEO and co-founder Patrick Collison, former GitHub CEO Nat Friedman, Shopify CEO Tobi Lutke, and former Microsoft executive and investor Charlie Songhurst.

"I've come to deeply respect this group of people and their achievements in their respective areas, and I'm grateful that they're willing to share their perspectives with Meta at such an important time as we take on new opportunities with AI and the metaverse," Zuckerberg wrote in an internal note to Meta employees, according to Bloomberg. The advisory council differs from Meta's 11-person board of directors because its members are not elected by shareholders, nor do they have fiduciary duty to Meta, a Meta spokesperson told Bloomberg. The spokesperson said that the men will not be paid for their roles on the advisory council.
TechCrunch notes that the council features "only white men on it." This "differs from Meta's actual board of directors and its Oversight Board, which is more diverse in gender and racial representation," reports TechCrunch.

"It's telling that the AI advisory council is composed entirely of businesspeople and entrepreneurs, not ethicists or anyone with an academic or deep research background. ... it's been proven time and time again that AI isn't like other products. It's a risky business, and the consequences of getting it wrong can be far-reaching, particularly for marginalized groups."
Wireless Networking

Why Your Wi-Fi Router Doubles As an Apple AirTag (krebsonsecurity.com) 73

An anonymous reader quotes a report from Krebs On Security: Apple and the satellite-based broadband service Starlink each recently took steps to address new research into the potential security and privacy implications of how their services geo-locate devices. Researchers from the University of Maryland say they relied on publicly available data from Apple to track the location of billions of devices globally -- including non-Apple devices like Starlink systems -- and found they could use this data to monitor the destruction of Gaza, as well as the movements and in many cases identities of Russian and Ukrainian troops. At issue is the way that Apple collects and publicly shares information about the precise location of all Wi-Fi access points seen by its devices. Apple collects this location data to give Apple devices a crowdsourced, low-power alternative to constantly requesting global positioning system (GPS) coordinates.

Both Apple and Google operate their own Wi-Fi-based Positioning Systems (WPS) that obtain certain hardware identifiers from all wireless access points that come within range of their mobile devices. Both record the Media Access Control (MAC) address that a Wi-FI access point uses, known as a Basic Service Set Identifier or BSSID. Periodically, Apple and Google mobile devices will forward their locations -- by querying GPS and/or by using cellular towers as landmarks -- along with any nearby BSSIDs. This combination of data allows Apple and Google devices to figure out where they are within a few feet or meters, and it's what allows your mobile phone to continue displaying your planned route even when the device can't get a fix on GPS.

With Google's WPS, a wireless device submits a list of nearby Wi-Fi access point BSSIDs and their signal strengths -- via an application programming interface (API) request to Google -- whose WPS responds with the device's computed position. Google's WPS requires at least two BSSIDs to calculate a device's approximate position. Apple's WPS also accepts a list of nearby BSSIDs, but instead of computing the device's location based off the set of observed access points and their received signal strengths and then reporting that result to the user, Apple's API will return the geolocations of up to 400 hundred more BSSIDs that are nearby the one requested. It then uses approximately eight of those BSSIDs to work out the user's location based on known landmarks.

In essence, Google's WPS computes the user's location and shares it with the device. Apple's WPS gives its devices a large enough amount of data about the location of known access points in the area that the devices can do that estimation on their own. That's according to two researchers at the University of Maryland, who theorized they could use the verbosity of Apple's API to map the movement of individual devices into and out of virtually any defined area of the world. The UMD pair said they spent a month early in their research continuously querying the API, asking it for the location of more than a billion BSSIDs generated at random. They learned that while only about three million of those randomly generated BSSIDs were known to Apple's Wi-Fi geolocation API, Apple also returned an additional 488 million BSSID locations already stored in its WPS from other lookups.
"Plotting the locations returned by Apple's WPS between November 2022 and November 2023, Levin and Rye saw they had a near global view of the locations tied to more than two billion Wi-Fi access points," the report adds. "The map showed geolocated access points in nearly every corner of the globe, apart from almost the entirety of China, vast stretches of desert wilderness in central Australia and Africa, and deep in the rainforests of South America."

The researchers wrote: "We observe routers move between cities and countries, potentially representing their owner's relocation or a business transaction between an old and new owner. While there is not necessarily a 1-to-1 relationship between Wi-Fi routers and users, home routers typically only have several. If these users are vulnerable populations, such as those fleeing intimate partner violence or a stalker, their router simply being online can disclose their new location."

A copy of the UMD research is available here (PDF).
Mozilla

Mozilla Says It's Concerned About Windows Recall (theregister.com) 67

Microsoft's Windows Recall feature is attracting controversy before even venturing out of preview. From a report: The principle is simple. Windows takes a snapshot of a user's active screen every few seconds and dumps it to disk. The user can then scroll through the snapshots and, when something is selected, the user is given options to interact with the content.

Mozilla's Chief Product Officer, Steve Teixeira, told The Register: "Mozilla is concerned about Windows Recall. From a browser perspective, some data should be saved, and some shouldn't. Recall stores not just browser history, but also data that users type into the browser with only very coarse control over what gets stored. While the data is stored in encrypted format, this stored data represents a new vector of attack for cybercriminals and a new privacy worry for shared computers.

"Microsoft is also once again playing gatekeeper and picking which browsers get to win and lose on Windows -- favoring, of course, Microsoft Edge. Microsoft's Edge allows users to block specific websites and private browsing activity from being seen by Recall. Other Chromium-based browsers can filter out private browsing activity but lose the ability to block sensitive websites (such as financial sites) from Recall. "Right now, there's no documentation on how a non-Chromium based, third-party browser, such as Firefox, can protect user privacy from Recall. Microsoft did not engage our cooperation on Recall, but we would have loved for that to be the case, which would have enabled us to partner on giving users true agency over their privacy, regardless of the browser they choose."

Encryption

Undisclosed WhatsApp Vulnerability Lets Governments See Who You Message (theintercept.com) 38

WhatsApp's security team warned that despite the app's encryption, users are vulnerable to government surveillance through traffic analysis, according to an internal threat assessment obtained by The Intercept. The document suggests that governments can monitor when and where encrypted communications occur, potentially allowing powerful inferences about who is conversing with whom. The report adds: Even though the contents of WhatsApp communications are unreadable, the assessment shows how governments can use their access to internet infrastructure to monitor when and where encrypted communications are occurring, like observing a mail carrier ferrying a sealed envelope. This view into national internet traffic is enough to make powerful inferences about which individuals are conversing with each other, even if the subjects of their conversations remain a mystery. "Even assuming WhatsApp's encryption is unbreakable," the assessment reads, "ongoing 'collect and correlate' attacks would still break our intended privacy model."

The WhatsApp threat assessment does not describe specific instances in which it knows this method has been deployed by state actors. But it cites extensive reporting by the New York Times and Amnesty International showing how countries around the world spy on dissident encrypted chat app usage, including WhatsApp, using the very same techniques. As war has grown increasingly computerized, metadata -- information about the who, when, and where of conversations -- has come to hold immense value to intelligence, military, and police agencies around the world. "We kill people based on metadata," former National Security Agency chief Michael Hayden once infamously quipped.
Meta said "WhatsApp has no backdoors and we have no evidence of vulnerabilities in how WhatsApp works." Though the assessment describes the "vulnerabilities" as "ongoing," and specifically mentions WhatsApp 17 times, a Meta spokesperson said the document is "not a reflection of a vulnerability in WhatsApp," only "theoretical," and not unique to WhatsApp.
EU

EU Sets Benchmark For Rest of the World With Landmark AI Laws (reuters.com) 28

An anonymous reader quotes a report from Reuters: Europe's landmark rules on artificial intelligence will enter into force next month after EU countries endorsed on Tuesday a political deal reached in December, setting a potential global benchmark for a technology used in business and everyday life. The European Union's AI Act is more comprehensive than the United States' light-touch voluntary compliance approach while China's approach aims to maintain social stability and state control. The vote by EU countries came two months after EU lawmakers backed the AI legislation drafted by the European Commission in 2021 after making a number of key changes. [...]

The AI Act imposes strict transparency obligations on high-risk AI systems while such requirements for general-purpose AI models will be lighter. It restricts governments' use of real-time biometric surveillance in public spaces to cases of certain crimes, prevention of terrorist attacks and searches for people suspected of the most serious crimes. The new legislation will have an impact beyond the 27-country bloc, said Patrick van Eecke at law firm Cooley. "The Act will have global reach. Companies outside the EU who use EU customer data in their AI platforms will need to comply. Other countries and regions are likely to use the AI Act as a blueprint, just as they did with the GDPR," he said, referring to EU privacy rules.

While the new legislation will apply in 2026, bans on the use of artificial intelligence in social scoring, predictive policing and untargeted scraping of facial images from the internet or CCTV footage will kick in in six months once the new regulation enters into force. Obligations for general purpose AI models will apply after 12 months and rules for AI systems embedded into regulated products in 36 months. Fines for violations range from $8.2 million or 1.5% of turnover to 35 million euros or 7% of global turnover depending on the type of violations.

AI

With Recall, Microsoft is Using AI To Fix Windows' Eternally Broken Search 104

Microsoft today unveiled Recall, a new AI-powered feature for Windows 11 PCs, at its Build 2024 conference. Recall aims to improve local searches by making them as efficient as web searches, allowing users to quickly retrieve anything they've seen on their PC. Using voice commands and contextual clues, Recall can find specific emails, documents, chat threads, and even PowerPoint slides.

The feature uses semantic associations to make connections, as demonstrated by Microsoft Product Manager Caroline Hernandez, who searched for a blue dress and refined the query with specific details. Microsoft said that Recall's processing is done locally, ensuring data privacy and security. The feature utilizes over 40 local multi-modal small language models to recognize text, images, and video.
Privacy

Police Found Ways to Use Facial Recognition Tech After Their Cities Banned It (yahoo.com) 32

An anonymous reader shared this report from the Washington Post: As cities and states push to restrict the use of facial recognition technologies, some police departments have quietly found a way to keep using the controversial tools: asking for help from other law enforcement agencies that still have access. Officers in Austin and San Francisco — two of the largest cities where police are banned from using the technology — have repeatedly asked police in neighboring towns to run photos of criminal suspects through their facial recognition programs, according to a Washington Post review of police documents...

Austin police officers received the results of at least 13 face searches from a neighboring police department since the city's 2020 ban — and appeared to get hits on some of them, according to documents obtained by The Post through public records requests and sources who shared them on the condition of anonymity. "That's him! Thank you very much," one Austin police officer wrote in response to an array of photos sent to him by an officer in Leander, Tex., who ran a facial recognition search, documents show. The man displayed in the pictures, John Curry Jr., was later charged with aggravated assault for allegedly charging toward someone with a knife, and is currently in jail awaiting trial. Curry's attorney declined to comment.

"Police officers' efforts to skirt these bans have not been previously reported and highlight the challenge of reining in police use of facial recognition," the article concludes.

It also points out that the technology "has played a role in the wrongful arrests of at least seven innocent Americans," according to the lawsuits they filed after charges against them were dismissed.
Transportation

Eight Automakers Grilled by US Lawmakers Over Sharing of Connected Car Data With Police (autoblog.com) 35

An anonymous reader shared this report from Automotive News: Automotive News recently reported that eight automakers sent vehicle location data to police without a court order or warrant. The eight companies told senators that they provide police with data when subpoenaed, getting a rise from several officials.

BMW, Kia, Mazda, Mercedes-Benz, Nissan, Subaru, Toyota, and Volkswagen presented their responses to lawmakers. Senators Ron Wyden from Oregon and Ed Markey from Massachusetts penned a letter to the Federal Trade Commission, urging investigative action. "Automakers have not only kept consumers in the dark regarding their actual practices, but multiple companies misled consumers for over a decade by failing to honor the industry's own voluntary privacy principles," they wrote.

Ten years ago, all of those companies agreed to the Consumer Privacy Protection Principles, a voluntary code that said automakers would only provide data with a warrant or order issued by a court. Subpoenas, on the other hand, only require approval from law enforcement. Though it wasn't part of the eight automakers' response, General Motors has a class-action suit on its hands, claiming that it shared data with LexisNexis Risk Solutions, a company that provides insurers with information to set rates.

The article notes that the lawmakers praised Honda, Ford, GM, Tesla, and Stellantis for requiring warrants, "except in the case of emergencies or with customer consent."
Security

SEC: Financial Orgs Have 30 Days To Send Data Breach Notifications (bleepingcomputer.com) 12

An anonymous reader quotes a report from BleepingComputer: The Securities and Exchange Commission (SEC) has adopted amendments to Regulation S-P that require certain financial institutions to disclose data breach incidents to impacted individuals within 30 days of discovery. Regulation S-P was introduced in 2000 and controls how some financial entities must treat nonpublic personal information belonging to consumers. These rules include developing and implementing data protection policies, confidentiality and security assurances, and protecting against anticipated threats.

The new amendments (PDF) adopted earlier this week impact financial firms, such as broker-dealers (funding portals included), investment firms, registered investment advisers, and transfer agents. The modifications were initially proposed in March of last year to modernize and improve the protection of individual financial information from data breaches and exposure to non-affiliated parties.
Below is a summary of the introduced changes:

- Notify affected individuals within 30 days if their sensitive information is, or is likely to be, accessed or used without authorization, detailing the incident, breached data, and protective measures taken. Exemption applies if the information isn't expected to cause substantial harm or inconvenience to the exposed individuals.
- Develop, implement, and maintain written policies and procedures for an incident response program to detect, respond to, and recover from unauthorized access or use of customer information. This should include procedures to assess and contain security incidents, enforce policies, and oversee service providers.
- Expand safeguards and disposal rules to cover all nonpublic personal information, including that received from other financial institutions.
- Require documentation of compliance with safeguards and disposal rules, excluding funding portals.
- Align annual privacy notice delivery with the FAST Act, exempting certain conditions.
- Extend safeguards and disposal rules to transfer agents registered with the SEC or other regulatory agencies.
Privacy

User Outcry As Slack Scrapes Customer Data For AI Model Training (securityweek.com) 34

New submitter txyoji shares a report: Enterprise workplace collaboration platform Slack has sparked a privacy backlash with the revelation that it has been scraping customer data, including messages and files, to develop new AI and ML models. By default, and without requiring users to opt-in, Slack said its systems have been analyzing customer data and usage information (including messages, content and files) to build AI/ML models to improve the software.

The company insists it has technical controls in place to block Slack from accessing the underlying content and promises that data will not lead across workplaces but, despite these assurances, corporate Slack admins are scrambling to opt-out of the data scraping. This line in Slack's communication sparked a social media controversy with the realization that content in direct messages and other sensitive content posted to Slack was being used to develop AI/ML models and that opting out world require sending e-mail requests: "If you want to exclude your Customer Data from Slack global models, you can opt out. To opt out, please have your org, workspace owners or primary owner contact our Customer Experience team at feedback@slack.com with your workspace/org URL and the subject line 'Slack global model opt-out request'. We will process your request and respond once the opt-out has been completed."

IOS

Former Windows Chief Explains Why macOS on iPad is Futile Quest 121

Tech columnist and venture investor MG Siegler, commenting on the new iPad Pro: I love the iPad for the things it's good at. And I love the MacBook for the things it's good at. What I want is less a completely combined device and more a single device that can run both macOS and iPadOS. And this new iPad Pro, again equipped with a chip faster than any MacBook, can do that if Apple allowed it to.

At first, maybe it's dual boot. That is, just let the iPad Pro load up macOS if it's attached to the Magic Keyboard and use the screen as a regular (but beautiful) monitor -- no touch. Over time, maybe macOS is just a "mode" inside of iPadOS -- complete with some elements updated to be touch-friendly, but not touch-first.
Steven Sinofsky, the former head of Microsoft's Windows division, chiming in: It is not unusual for customers to want the best of all worlds. It is why Detroit invented convertibles and el caminos.

But the idea of a "dual boot" device is just nuts. It is guaranteed the only reality is it is running the wrong OS all the time for whatever you want to do. It is a toaster-refrigerator. Only techies like devices that "presto-change" into something else. Regular humans never flocked to El Caminos, and even today SUVs just became station wagons and almost none actually go off road :-)

Two things that keep going unanswered if you really want macOS on an iPad device:

1. What software on Mac do you want for an iPad device experience? What software will get rewritten for touch? If you want "touch-enabled" check out what happened on the Windows desktop. Nearly everything people say they want isn't features as much as the mouse interaction model. People want overlapping windows, a desktop of folders, infinitely resizable windows, and so on. These don't work on touch very well and certainly not for people who don't want to futz.
2. Will you be happy with battery life? The physics of an iPad mean the battery is 2/3rds the size of a Mac battery. Do you really want that? I don't. The reason the iPad is the 5.x mm device is because the default doesn't have a keyboard holding the battery. This is about the realities. The metaphors that people like on a desktop, heck that they love, just don't work with the blunt instrument of touch. It might be possible to build all new metaphors that use only tough and thus would be great on an iPad but that isn't what they tried. The device grew out of a phone. It's only their incredible work on iPhone that led to Mx silicon and their tireless work on the Mac-centric frameworks that delivered a big chunk (but not all) the privacy, reliability, battery life, security, etc. of the phone on Mac. [...]
Privacy

Threat Actor Scraped Dell Support Tickets, Including Customer Phone Numbers (techcrunch.com) 16

The person who claimed to have stolen the physical addresses of 49 million Dell customers appears to have taken more data from a different Dell portal, TechCrunch reported Tuesday. From the report: The newly compromised data includes names, phone numbers and email addresses of Dell customers. This personal data is contained in customer "service reports," which also include information on replacement hardware and parts, comments from on-site engineers, dispatch numbers, and in some cases diagnostic logs uploaded from the customer's computer.

Several reports seen by TechCrunch contain pictures apparently taken by customers and uploaded to Dell for seeking technical support. Some of these pictures contain metadata revealing the precise GPS coordinates of the location where the customer took the photos, according to a sample of the scraped data obtained by TechCrunch.

The Courts

Tornado Cash Developer Found Guilty of Laundering $1.2 Billion of Crypto (wired.com) 95

A panel of judges in the Netherlands has found Alexey Pertsev, one of the developers behind crypto anonymizing tool Tornado Cash, guilty of money laundering. Wired: Over the course of two days in March, the Russian national was tried on the allegation that the tool he developed had allowed criminals -- among them hackers with ties to North Korea -- to freely launder $1.2 billion in stolen cryptocurrency. "The management of Tornado Cash welcomed the bank robbers with open arms," the prosecutors wrote in a March court filing.

Dutch judges sentenced Pertsev to five years and four months in prison on Tuesday, which was the term requested by prosecutors in the case. "With Tornado Cash, the defendant created a shortcut for financing crimes and terrorism," said the court in a statement, translated from Dutch. "He chose to look away from the abuse and did not take any responsibility." The purpose of tools like Tornado Cash, known as crypto mixers or tumblers, is to mask the origin and destination of users' coins. Funds belonging to many parties are pooled, jumbled up, and spat out into brand-new wallets, by which time it is no longer clear whose crypto is whose. These services are promoted as a way to improve the level of privacy available to crypto users, but have been readily co-opted for the purpose of money laundering.

On August 8, 2022, Tornado Cash was sanctioned in the United States, making it illegal for US citizens to use the service. Any product that "indiscriminately facilitates anonymous transactions," wrote the US Treasury's Office of Foreign Assets Control, represents a "threat to US national security." Two days later, Pertsev was arrested in the Netherlands, where he resided. Money laundering activity, the Dutch prosecutors claim, accounted for more than 30 percent of the funds that passed through Tornado Cash between 2019 and 2022. [...] Pertsev built his defense on the argument that Tornado Cash, which remains in operation, is under nobody's control -- including his own -- as a piece of software that runs on the Ethereum blockchain, a distributed network of computers.
Further reading: Coinbase Employees and Ethereum Backers Sue US Treasury Over Tornado Cash Sanctions (September 2022).
Google

Apple and Google Introduce Alerts for Unwanted Bluetooth Tracking 39

Apple and Google have launched a new industry standard called "Detecting Unwanted Location Trackers" to combat the misuse of Bluetooth trackers for stalking. Starting Monday, iPhone and Android users will receive alerts when an unknown Bluetooth device is detected moving with them. The move comes after numerous cases of trackers like Apple's AirTags being used for malicious purposes.

Several Bluetooth tag companies have committed to making their future products compatible with the new standard. Apple and Google said they will continue collaborating with the Internet Engineering Task Force to further develop this technology and address the issue of unwanted tracking.
Facebook

Meta Explores AI-Assisted Earphones With Cameras (theinformation.com) 23

An anonymous reader shares a report: Meta Platforms is exploring developing AI-powered earphones with cameras, which the company hopes could be used to identify objects and translate foreign languages, according to three current employees. Meta's work on a new AI device comes as several tech companies look to develop AI wearables, and after Meta added an AI assistant to its Ray-Ban smart glasses.

Meta CEO Mark Zuckerberg has seen several possible designs for the device but has not been satisfied with them, one of the employees said. It's unclear if the final design will be in-ear earbuds or over-the-ear headphones. Internally, the project goes by the name Camerabuds. The timeline is also unclear. Company leaders had expected a design to be approved in the first quarter, one of the people said. But employees have identified multiple potential problems with the project, including that long hair may cover the cameras on the earbuds. Also, putting a camera and batteries into tiny devices could make the earbuds bulky and risk making them uncomfortably hot. Attaching discreet cameras to a wearable device may also raise privacy concerns, as Google learned with Google Glass.

Social Networks

Reddit Grows, Seeks More AI Deals, Plans 'Award' Shops, and Gets Sued (yahoo.com) 45

Reddit reported its first results since going public in late March. Yahoo Finance reports: Daily active users increased 37% year over year to 82.7 million. Weekly active unique users rose 40% from the prior year. Total revenue improved 48% to $243 million, nearly doubling the growth rate from the prior quarter, due to strength in advertising. The company delivered adjusted operating profits of $10 million, versus a $50.2 million loss a year ago. [Reddit CEO Steve] Huffman declined to say when the company would be profitable on a net income basis, noting it's a focus for the management team. Other areas of focus include rolling out a new user interface this year, introducing shopping capabilities, and searching for another artificial intelligence content licensing deal like the one with Google.
Bloomberg notes that already Reddit "has signed licensing agreements worth $203 million in total, with terms ranging from two to three years. The company generated about $20 million from AI content deals last quarter, and expects to bring in more than $60 million by the end of the year."

And elsewhere Bloomberg writes that Reddit "plans to expand its revenue streams outside of advertising into what Huffman calls the 'user economy' — users making money from others on the platform... " In the coming months Reddit plans to launch new versions of awards, which are digital gifts users can give to each other, along with other products... Reddit also plans to continue striking data licensing deals with artificial intelligence companies, expanding into international markets and evaluating potential acquisition targets in areas such as search, he said.
Meanwhile, ZDNet notes that this week a Reddit announcement "introduced a new public content policy that lays out a framework for how partners and third parties can access user-posted content on its site." The post explains that more and more companies are using unsavory means to access user data in bulk, including Reddit posts. Once a company gets this data, there's no limit to what it can do with it. Reddit will continue to block "bad actors" that use unauthorized methods to get data, the company says, but it's taking additional steps to keep users safe from the site's partners.... Reddit still supports using its data for research: It's creating a new subreddit — r/reddit4researchers — to support these initiatives, and partnering with OpenMined to help improve research. Private data is, however, going to stay private.

If a company wants to use Reddit data for commercial purposes, including advertising or training AI, it will have to pay. Reddit made this clear by saying, "If you're interested in using Reddit data to power, augment, or enhance your product or service for any commercial purposes, we require a contract." To be clear, Reddit is still selling users' data — it's just making sure that unscrupulous actors have a tougher time accessing that data for free and researchers have an easier time finding what they need.

And finally, there's some court action, according to the Register. Reddit "was sued by an unhappy advertiser who claims that internet giga-forum sold ads but provided no way to verify that real people were responsible for clicking on them." The complaint [PDF] was filed this week in a U.S. federal court in northern California on behalf of LevelFields, a Virginia-based investment research platform that relies on AI. It says the biz booked pay-per-click ads on the discussion site starting September 2022... That arrangement called for Reddit to use reasonable means to ensure that LevelField's ads were delivered to and clicked on by actual people rather than bots and the like. But according to the complaint, Reddit broke that contract...

LevelFields argues that Reddit is in a particularly good position to track click fraud because it's serving ads on its own site, as opposed to third-party properties where it may have less visibility into network traffic... Nonetheless, LevelFields's effort to obtain IP address data to verify the ads it was billed for went unfulfilled. The social media site "provided click logs without IP addresses," the complaint says. "Reddit represented that it was not able to provide IP addresses."

"The plaintiffs aspire to have their claim certified as a class action," the article adds — along with an interesting statistic.

"According to Juniper Research, 22 percent of ad spending last year was lost to click fraud, amounting to $84 billion."
AI

Did OpenAI, Google and Meta 'Cut Corners' to Harvest AI Training Data? (indiatimes.com) 58

What happened when OpenAI ran out of English-language training data in 2021?

They just created a speech recognition tool that could transcribe the audio from YouTube videos, reports The New York Times, as part of an investigation arguing that tech companies "including OpenAI, Google and Meta have cut corners, ignored corporate policies and debated bending the law" in their search for AI training data. [Alternate URL here.] Some OpenAI employees discussed how such a move might go against YouTube's rules, three people with knowledge of the conversations said. YouTube, which is owned by Google, prohibits use of its videos for applications that are "independent" of the video platform. Ultimately, an OpenAI team transcribed more than 1 million hours of YouTube videos, the people said. The team included Greg Brockman, OpenAI's president, who personally helped collect the videos, two of the people said. The texts were then fed into a system called GPT-4...

At Meta, which owns Facebook and Instagram, managers, lawyers and engineers last year discussed buying the publishing house Simon & Schuster to procure long works, according to recordings of internal meetings obtained by the Times. They also conferred on gathering copyrighted data from across the internet, even if that meant facing lawsuits. Negotiating licenses with publishers, artists, musicians and the news industry would take too long, they said.

Like OpenAI, Google transcribed YouTube videos to harvest text for its AI models, five people with knowledge of the company's practices said. That potentially violated the copyrights to the videos, which belong to their creators. Last year, Google also broadened its terms of service. One motivation for the change, according to members of the company's privacy team and an internal message viewed by the Times, was to allow Google to be able to tap publicly available Google Docs, restaurant reviews on Google Maps and other online material for more of its AI products...

Some Google employees were aware that OpenAI had harvested YouTube videos for data, two people with knowledge of the companies said. But they didn't stop OpenAI because Google had also used transcripts of YouTube videos to train its AI models, the people said. That practice may have violated the copyrights of YouTube creators. So if Google made a fuss about OpenAI, there might be a public outcry against its own methods, the people said.

The article adds that some tech companies are now even developing "synthetic" information to train AI.

"This is not organic data created by humans, but text, images and code that AI models produce — in other words, the systems learn from what they themselves generate."

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