Technology

Apple Inc Bets Big on India as It Opens First Flagship Store

Apple Inc. opened its first flagship store in India in a much-anticipated launch Tuesday that highlights the company’s growing aspirations to expand in the country it also hopes to turn into a potential manufacturing hub.

The company’s CEO Tim Cook posed for photos with a few of the 100 or so Apple fans who had lined up outside the sprawling 20,000-square-foot store in India’s financial capital, Mumbai, its design inspired by the iconic black-and-yellow cabs unique to the city. A second store will open Thursday in the national capital, New Delhi.

“India has such a beautiful culture and an incredible energy, and we’re excited to build on our long-standing history,” Cook said in a statement earlier.

The tech giant has been operating in India for more than 25 years, selling its products through authorized retailers and the website it launched a few years ago. But regulatory hurdles and the pandemic delayed its plans to open a flagship store.

The new stores are a clear signal of the company’s commitment to invest in India, the second-largest smartphone market in the world where iPhone sales have been ticking up steadily, said Jayanth Kolla, analyst at Convergence Catalyst, a tech consultancy. The stores show “how much India matters to the present and the future of the company,” he added.

For the Cupertino, California-based company, India’s sheer size makes the market especially encouraging.

About 600 million of India’s 1.4 billion people have smartphones, “which means the market is still under-penetrated and the growth prospect is huge,” said Neil Shah, vice president of research at technology market research firm Counterpoint Research.

Between 2020 and 2022, the Silicon Valley company has gained some ground in the smartphone market in the country, going from just about 2% to capturing 6%, according to Counterpoint data.

Still, the iPhone’s hefty price tag puts it out of reach for the majority of Indians.

Instead, iPhone sales in the country have thrived among the sliver of upper-middle-class and rich Indians with disposable incomes, a segment of buyers that Shah says is rising. According to Counterpoint data, Apple has captured 65% of the “premium” smartphone market, where prices range up from 30,000 rupees ($360).

In September, Apple announced it would start making its iPhone 14 in India. The news was hailed as a win for Prime Minister Narendra Modi’s government, which has pushed for ramping up local manufacturing ever since he came to power in 2014.

Apple first began manufacturing from India in 2017 with its iPhone SE and has since continued to assemble a number of iPhone models from the country.

Most of Apple’s smartphones and tablets are assembled by contractors with factories in China, but the company started looking at potentially moving some production to Southeast Asia or other places after repeated shutdowns to fight COVID-19 disrupted its global flow of products.

“Big companies got a jolt, they realized they needed a backup strategy outside of China — they couldn’t risk another lockdown or any geopolitical rift affecting their business,” said Kolla.

Currently, India makes close to 13 million iPhones every year, up from less than 5 million three years ago, according to Counterpoint Research. This is about 6% of iPhones made globally — and only a small slice in comparison to China, which still produces around 90% of them.

Last week, India’s Commerce Minister Piyush Goyal said the government was in regular touch with Apple to support their business here and that the company had plans to have 25% of their global production come out of India in the next five years.

The challenge for Apple, according to Shah of Counterpoint, is that the raw materials are still coming from outside India so the tech company will need to either find a local supplier or bring their suppliers, based in countries like China, Japan and Taiwan, closer to drive up production.

Still, he’s optimistic this target could be met, especially with labor costs being lower in India and the government wooing companies with attractive subsidies to boost local manufacturing.

“For Apple, everything is about timing. They don’t enter a market with full flow until they feel confident about their prospects. They can see the opportunity here today — it’s a win-win situation,” Shah said.

SpaceX Postpones Debut Flight of Starship Rocket System

Elon Musk’s SpaceX on Monday called off a highly anticipated launch of its powerful new Starship rocket, delaying the first uncrewed test flight of the vehicle into space.

The two-stage rocketship, standing taller than the Statue of Liberty at 394 feet (120 m) high, originally was scheduled for blast-off from the SpaceX facility at Boca Chica, Texas, during a two-hour launch window that began at 8 a.m. EDT (1200 GMT).

But the California-based space company announced in a live webcast during the final minutes of the countdown that it was scrubbing the flight attempt for at least 48 hours, citing a pressurization issue in the lower-stage rocket booster.

Musk, the company’s billionaire founder and chief executive, told a private Twitter audience on Sunday night that the mission stood a better chance of being scrubbed than proceeding to launch on Monday.

Getting the vehicle to space for the first time would represent a key milestone in SpaceX’s ambition of sending humans back to the moon and ultimately to Mars – at least initially as part of NASA’s newly inaugurated human spaceflight program, Artemis.

A successful debut flight would also instantly rank the Starship system as the most powerful launch vehicle on Earth.

Both the lower-stage Super Heavy booster rocket and the upper-stage Starship cruise vessel it will carry to space are designed as reusable components, capable of flying back to Earth for soft landings – a maneuver that has become routine for SpaceX’s smaller Falcon 9 rocket.

But neither stage would be recovered for the expendable first test flight to space, expected to last no more than 90 minutes.

Prototypes of the Starship cruise vessel have made five sub-space flights up to 6 miles (10 km) above Earth in recent years, but the Super Heavy booster has never left the ground.

In February, SpaceX did a test-firing of the booster, igniting 31 of its 33 Raptor engines for roughly 10 seconds with the rocket bolted in place vertically atop a platform.

The Federal Aviation Administration just last Friday granted a license for what would be the first test flight of the fully stacked rocket system, clearing a final regulatory hurdle for the long-awaited launch.

If all goes as planned for the next launch bid, all 33 Raptor engines will ignite simultaneously to loft the Starship on a flight that nearly completes a full orbit of the Earth before it re-enters the atmosphere and free-falls into the Pacific at supersonic speed about 60 miles (97 km) off the coast of the northern Hawaiian islands.

After separating from the Starship, the Super Heavy booster is expected to execute the beginnings of a controlled return flight before plunging into the Gulf of Mexico.

As designed, the Starship rocket is nearly two times more powerful than NASA’s own Space Launch System (SLS), which made its debut uncrewed flight to orbit in November, sending a NASA cruise vessel called Orion on a 10-day voyage around the moon and back.

Japan’s Sega to Buy Finnish Angry Birds Maker Rovio

Japanese video games group Sega has offered to buy Angry Birds maker Rovio, valuing the Finnish company at over $770 million, the companies said Monday.   

“Combining the strengths of Rovio and Sega presents an incredibly exciting future,” Alexandre Pelletier-Normand, CEO of Rovio, said in a statement, which added that Rovio was recommending shareholders to accept the offer.   

The offer, which represents a 19% premium over Rovio’s closing share price on Friday, is part of the Sonic the Hedgehog maker’s “long-term goal” of expanding into the mobile gaming market, Sega CEO Haruki Satomi said.   

“Among the rapidly growing global gaming market, the mobile gaming market has especially high potential,” he added.   

In 2022, Rovio, which employs over 500 people, saw a revenue of $350 million, and an adjusted net profit of $34.5 million.   

Rovio launched the bird slingshot game in 2009 and it soared rapidly to become one of the most popular games on Apple’s App Store.   

In 2016, the “Angry Birds” movie, produced by Sony Entertainment, was a huge success and grossed $350 million worldwide.   

Rovio also manages Angry Birds theme parks in several countries and oversees the publication of children’s books about the famous birds in a dozen languages.   

Following the global success of Angry Birds, Rovio has remained heavily reliant on its flagship game, struggling to develop another similar hit.   

After years of success tied to its Angry Birds mobile games, Rovio hit a rough patch in 2015 and laid off a third of its staff.   

Sega is aiming to open the offer period in early May, hoping to complete the deal in the third quarter, the company said. 

‘Big Sponge’: New CO2 Tech Taps Oceans to Tackle Global Warming

Floating in the port of Los Angeles, a strange-looking barge covered with pipes and tanks contains a concept that scientists hope to make waves: a new way to use the ocean as a vast carbon dioxide sponge to tackle global warming.

Scientists from University of California Los Angeles (UCLA) have been working for two years on SeaChange — an ambitious project that could one day boost the amount of CO2, a major greenhouse gas, that can be absorbed by our seas.

Their goal is “to use the ocean as a big sponge,” according to Gaurav Sant, director of the university’s Institute for Carbon Management (ICM).

The oceans, covering most of the Earth, are already the planet’s main carbon sinks, acting as a critical buffer in the climate crisis.

They absorb a quarter of all CO2 emissions, as well as 90% of the warming that has occurred in recent decades due to increasing greenhouse gases.

But they are feeling the strain. The ocean is acidifying, and rising temperatures are reducing its absorption capacity.

The UCLA team wants to increase that capacity by using an electrochemical process to remove vast quantities of CO2 already in seawater — rather like wringing out a sponge to help recover its absorptive power.

“If you can take out the carbon dioxide that is in the oceans, you’re essentially renewing their capacity to take additional carbon dioxide from the atmosphere,” Sant told AFP.

Engineers built a floating mini-factory on a 30-meter-long boat which pumps in seawater and subjects it to an electrical charge.

Chemical reactions triggered by electrolysis convert CO2 dissolved in the seawater into a fine white powder containing calcium carbonate — the compound found in chalk, limestone and oyster or mussel shells.

This powder can be discarded back into the ocean, where it remains in solid form, thereby storing CO2 “very durably… over tens of thousands of years,” explained Sant.

Meanwhile, the pumped water returns to the sea, ready to absorb more carbon dioxide from the atmosphere.

Sant and his team are confident the process will not damage the marine environment, although this will require further testing to confirm.

A potential additional benefit of the technology is that it creates hydrogen as a byproduct. As the so-called “green revolution” progresses, the gas could be widely used to power clean cars, trucks and planes in the future.

Of course, the priority in curbing global warming is for humans to drastically reduce current CO2 emissions — something nations are struggling to achieve.

But in parallel, most scientists say carbon dioxide capture and storage techniques can play an important role in keeping the planet livable.

Carbon dioxide removal (CDR) could help to achieve carbon neutrality by 2050 as it offsets emissions from industries which are particularly difficult to decarbonize, such as aviation, and cement and steel production.

It could help to tackle the stocks of CO2 that have been accumulating in the atmosphere for decades.

Keeping global warming under control will require the removal of between 450 billion and 1.1 trillion tons of CO2 from the atmosphere by 2100, according to the first global report dedicated to the topic, released in January.

That would require the CDR sector “to grow at a rate of about 30 percent per year over the next 30 years, much like what happened with wind and solar,” said one of its authors, Gregory Nemet.

UCLA’s SeaChange technology “fits into a category of a promising solution that could be large enough to be climate-relevant,” said Nemet, a professor at the University of Wisconsin-Madison.

By sequestering CO2 in mineral form within the ocean, it differs markedly from existing “direct air capture” (DAC) methods, which involve pumping and storing gas underground through a highly complex and expensive process.

A start-up company, Equatic, plans to scale up the UCLA technology and prove its commercial viability, by selling carbon credits to manufacturers wanting to offset their emissions.

In addition to the Los Angeles barge, a similar boat is currently being tested in Singapore.

Sant hopes data from both sites will quickly lead to the construction of far larger plants that are capable of removing “thousands of tons of carbon” each year.

“We expect to start operating these new plants in 18 to 24 months,” he said.

First Image of Black Hole Gets Makeover With AI 

The first image of a black hole captured four years ago revealed a fuzzy, fiery doughnut-shaped object. Now, researchers have used artificial intelligence to give that cosmic beauty shot a touch-up.

The updated picture, published Thursday in the Astrophysical Journal Letters, keeps the original shape, but with a skinnier ring and a sharper resolution.

The image released in 2019 gave a peek at the enormous black hole at the center of the M87 galaxy, 53 million light-years from Earth. A light-year is 5.8 trillion miles. It was made using data gathered by a network of radio telescopes around the world, showing swirling light and gas.

But even with many telescopes working together, gaps remained in the data. In the latest study, scientists relied on the same data and used machine learning to fill in the missing pieces.

The resulting picture looks similar to the original, but with a thinner “doughnut” and a darker center, researchers said.

“For me, it feels like we’re really seeing it for the first time,” said lead author Lia Medeiros, an astrophysicist at the Institute for Advanced Study in New Jersey.

Medeiros said the team plans to use machine learning on other images of celestial objects, including possibly the black hole at the center of our Milky Way galaxy.

ChatGPT Could Return to Italy if OpenAI Complies With Rules

ChatGPT could return to Italy soon if its maker, OpenAI, complies with measures to satisfy regulators who had imposed a temporary ban on the artificial intelligence software over privacy worries.

The Italian data protection authority on Wednesday outlined a raft of requirements that OpenAI will have to satisfy by April 30 for the ban on AI chatbot to be lifted.

The watchdog last month ordered the company to temporarily stop processing Italian users’ personal information while it investigated a possible data breach. The authority said it didn’t want to hamper AI’s development but emphasized the importance of following the European Union’s strict data privacy rules.

OpenAI, which had responded by proposing remedies to ease the concerns, did not reply immediately to a request for comment Wednesday.

Concerns about boom grow

Concerns are growing about the artificial intelligence boom, with other countries, from France to Canada, investigating or looking closer at so-called generative AI technology like ChatGPT. The chatbot is “trained” on huge pools of data, including digital books and online writings, and able to generate text that mimics human writing styles.

Under Italy’s measures, OpenAI must post information on its website about how and why it processes the personal information of both users and non-users, as well as provide the option to correct or delete that data.

The company will have to rely on consent or “legitimate interest” to use personal data to train ChatGPT’s algorithms, the watchdog said.

Regulators question legal basis

The Italian regulators had questioned whether there’s a legal basis for OpenAI to collect massive amounts of data used to teach ChatGPT’s algorithms and raised concerns the system could sometimes generate false information about individuals.

San Francisco-based OpenAI also will have to carry out a publicity campaign by May 15 through radio and TV, newspapers and the internet to inform people about how it uses their personal data for training algorithms, Italy’s watchdog said.

There’s also a requirement to verify users’ ages and set up a system to filter out those who are under 13 and teens between 13 and 18 who don’t have parental consent.

“Only in that case will the Italian SA (supervisory authority) lift its order that placed a temporary limitation on the processing of Italian users’ data … so that ChatGPT will be available once again from Italy,” the watchdog said on its website.

New US Electric Vehicle Rule Would Speed Supply Chain Changes

A Biden administration proposal would force U.S. automakers to sharply increase their production of electric cars and trucks over the next decade, lending greater urgency to the effort to build raw material supply chains that reduce the industry’s dependence on China.

The Environmental Protection Agency on Wednesday announced a proposed rule that would place stricter limits on the average tailpipe emissions of vehicles built in the United States. The proposal would reduce the allowable limit by so much that automakers would have no way to comply unless about two-thirds of the vehicles they produce by 2032 are emission-free electric vehicles.

Automakers have generally recognized that EVs represent the future of the industry, but Wednesday’s proposal would greatly accelerate the trend. The proposal, which will be open to public comment before it is finalized, would greatly reduce a leading cause of air pollution in the U.S., as well as the greenhouse gases that contribute to global warming.

“By proposing the most ambitious pollution standards ever for cars and trucks, we are delivering on the Biden-Harris administration’s promise to protect people and the planet, securing critical reductions in dangerous air and climate pollution, and ensuring significant economic benefits like lower fuel and maintenance costs for families,” said EPA Administrator Michael Regan.

The proposal, which would apply to new light-duty vehicles made in 2027 and beyond, would be the strictest environmental standard the federal government has ever applied to automobiles. If it does force the industry to make EVs account for two-thirds of production, it could also exceed President Joe Biden’s previously articulated target of making 50% of new cars either plug-in hybrids or completely emission-free by 2030.

Supply chain questions

Well before the EPA released its proposed rule Wednesday, the Biden administration had been moving to strengthen the EV market in the U.S. and to build a pipeline for raw materials that would reduce the auto industry’s reliance on China for key raw materials.

Accomplishing that reduction will be no small task. According to an analysis by the International Energy Agency last year, China produced three-quarters of the world’s lithium-ion batteries, the key component in the majority of EVs on the road.

China also has a dominant hold on much of the market for the components of those batteries, including lithium, cobalt and graphite. According to the IEA, more than half of the world’s capacity for processing and refining those materials is located in China.

According to the IEA, as of last year, the U.S. accounted for only 10% of EV production worldwide, and just 7% of production capacity for batteries.

Infrastructure projects

Last year’s passage of the Inflation Reduction Act, which contained hundreds of billions of dollars in climate-related spending, included the creation of large tax breaks restricted to EVs made at least partly in the U.S. The tax breaks are meant to extend over several years, but the restrictions become tighter as time goes on, creating incentives for manufacturers to “onshore” production to the U.S.

Tax breaks specific to the batteries used in EVs require that the raw materials used to assemble them come from domestic sources or from countries with which the U.S. has existing trade agreements.

Other pieces of legislation meant to spur investment in the U.S., including a major bipartisan infrastructure bill and the CHIPS and Science Act, also contain money and incentives that will help build out electric infrastructure in the U.S.

Achievable goals

Luke Tonachel, senior director for clean vehicles and buildings with the Natural Resources Defense Council, told VOA that building an EV supply chain centered on domestic production and imports from friendly countries is ambitious, but achievable.

Tonachel said the necessary raw materials are available from U.S. allies, but that the capacity for processing them needs to be built domestically. He said the creation of that capacity is already underway.

“There are robust incentives for building out that battery manufacturing and supply chain here in the U.S.,” he said, adding that he believes the administration’s time frame is feasible, especially now that the new standards have created certainty about future demand for EVs.

“It is realistic,” he said. “These are technologies that are known. We can certainly get more economies of scale as we ramp up production.”

Automakers tentative

Industry representatives said achieving the administration’s goal will require that a lot of disparate efforts be successful at the same time, not all of which are under their control. For example, a nationwide network of charging stations and the increased capacity to meet new demand for power will be essential to driving customer demand.

“It’s aggressive, and a lot of pieces have to work perfectly together,” Genevieve Cullen, president of the Electric Drive Transportation Association, told VOA. “Aside from the technology piece, the market piece has to work, and supply chain speed is part of that. Consumer incentives are working to help bring them into the equation, and we need to keep expanding infrastructure at a pace that meets, and perhaps exceeds, the needs in the beginning so that people feel the confidence that they need to switch to battery electric.”

John Bozzella, president of the trade group Alliance for Automotive Innovation, said in a blog post Wednesday that the administration’s plan is “aggressive by any measure” and that its success would depend on more than just automakers being able to ramp up production.

“To some extent, the baseline policy framework for the transition has come into focus,” Bozzella said. “But it remains to be seen whether the refueling infrastructure incentives and supply-side provisions of the Inflation Reduction Act, the bipartisan infrastructure law, and the CHIPS and Science Act are sufficient to support electrification at the levels envisioned by the proposed standards over the coming years.”

In US, National Public Radio Abandons Twitter

Broadcaster National Public Radio said Wednesday it would no longer post its news content on 52 official Twitter accounts in protest of the social media site labeling the independent U.S. news agency as “government-funded media.” 

NPR is the first major news organization to go silent on Twitter. The social media platform owned by entrepreneur Elon Musk at first labeled NPR as “state-affiliated media,” the same tag it applies to propaganda outlets in China, Russia and other autocratic countries. 

Twitter then revised its label to “government-funded media,” but NPR said that, too, was misleading because NPR is a private, nonprofit company with editorial independence. NPR says it receives less than 1% of its $300 million annual budget from the federally funded Corporation for Public Broadcasting.  

NPR chief executive John Lansing said that by not posting its news reports on Twitter, the network is protecting its credibility and would continue to produce journalism without “a shadow of negativity.” 

In an email to staff explaining the decision, Lansing wrote, “It would be a disservice to the serious work you all do here to continue to share it on a platform that is associating the federal charter for public media with an abandoning of editorial independence or standards.”  

He said that even if Twitter were to drop any description of NPR, the network would not immediately return to the platform. 

“At this point I have lost my faith in the decision-making at Twitter,” Lansing said in an article posted by NPR. “I would need some time to understand whether Twitter can be trusted again.”

Twitter has also labeled Voice of America, a U.S. government-funded but independent news agency, and the BBC in Britain, as “government-funded media,” a description more commonly employed in describing state-controlled propaganda outlets. VOA has not dropped its use of Twitter but said its description of the news outlet left the impression that it was not independent. 

Bridget Serchak, VOA’s director of public relations, said, “The label ‘government funded’ is potentially misleading and could be construed as also ‘government-controlled’ — which VOA is most certainly not.” 

“Our editorial firewall, enshrined in the law, prohibits any interference from government officials at any level in its news coverage and editorial decision-making process,” Serchak said in an email. “VOA will continue to emphasize this distinction in our discussions with Twitter, as this new label on our network causes unwarranted and unjustified concern about the accuracy and objectivity of our news coverage.” 

VOA is funded by the U.S. government and is part of the U.S. Agency for Global Media, but its editorial independence is protected by regulations and a firewall. The BBC said it “is, and always has been, independent.” 

Press freedom advocates have also objected to Twitter’s labeling of NPR, VOA and the BBC.

“The confusion between media serving the general interest and propaganda media is dangerous, and is yet further proof that social media platforms are not competent to identify what is and is not journalism,” Vincent Berthier, head of the technology desk at Reporters Without Borders, said in a statement. 

Liam Scott contributed to this report.

Musk Says Owning Twitter ‘Painful’ But Needed To Be Done

Billionaire Elon Musk has told the BBC that running Twitter has been “quite painful” but that the social media company is now roughly breaking even after he acquired it late last year.

In an interview also streamed live late Tuesday on Twitter Spaces, Musk discussed his ownership of the online platform, including layoffs, misinformation and his work style.

“It’s not been boring. It’s quite a rollercoaster,” he told the U.K. broadcaster at Twitter’s San Francisco headquarters.

It was a rare chance for a mainstream news outlet to interview Musk, who also owns Tesla and SpaceX. After buying Twitter for $44 billion last year, Musk’s changes included eliminating the company’s communications department.

Reporters who email the company to seek comment now receive an auto-reply with a poop emoji.

The interview was sometimes tense, with Musk challenging the reporter to back up assertions about rising levels of hate speech on the platform. At other times, Musk laughed at his own jokes, mentioning more than once that he wasn’t the CEO but his dog Floki was.

He also revealed that he sometimes sleeps on a couch at Twitter’s San Francisco office.

Advertisers who had shunned the platform in the wake of Musk’s tumultuous acquisition have mostly returned, the billionaire said, without providing details.

Musk predicted that Twitter could become “cash flow positive” in the current quarter “if current trends continue.” Because Twitter is a private company, information about its finances can’t be verified.

After acquiring the platform, Musk carried out mass layoffs as part of cost-cutting efforts. He said Twitter’s workforce has been slashed to about 1,500 employees from about 8,000 previously, describing it as something that had to be done.

“It’s not fun at all,” Musk said. “The company’s going to go bankrupt if we don’t cut costs immediately. This is not a caring-uncaring situation. It’s like if the whole ship sinks, then nobody’s got a job.”

Asked if he regretted buying the company, he said it was something that “needed to be done.”

“The pain level of Twitter has been extremely high. This hasn’t been some sort of party,” Musk said.

China Unveils Proposed New Law Overseeing Artificial Intelligence Products

China’s internet regulator has unveiled a proposed law that will require makers of new artificial intelligence, or AI, products to submit to security assessments before public release.

The draft law released Tuesday by the Cyberspace Administration of China says that content generated by future AI products must reflect the country’s “core socialist values” and not encourage subversion of state power.  

The draft law also said AI content must not promote discrimination based on ethnicity, race and gender, and should not provide false information.  

The proposed law is expected to take effect sometime this year. The regulations come as several China-based tech companies, including Alibaba, JD.com and Baidu have released a flurry of new so-called generative AI products which can mimic human speech and generate content such as images and texts. The innovative feature has surged in popularity since San Francisco-based OpenAI introduced ChatGPT last November.  

Some information for this report came from Reuters, Agence France-Presse.

Australia Aims to Make Industry More Resilient Against Cyberattacks

The Australian government is asking major banks and other institutions to take part in ‘wargaming’ exercises to test how they would respond to cyber-attacks. It follows recent mass data theft attacks on several large companies, which compromised the data of millions of Australians.     

Australia is preparing for potential cyberattacks on critical services including hospitals, the banking system and the electricity grid.  

Home Affairs Minister Clare O’Neil Tuesday warned that recent high-profile hacks on the telecommunications and health insurance sectors, which have affected millions of people, “were just the tip of the iceberg”.   

The government is setting up a series of drills with large organizations to help them respond to security breaches.   

Anna Bligh, chief executive of the Australian Banking Association, an industry body, told the Australian Broadcasting Corp. Tuesday that cyber security drills organized by the government will make the sector more resilient. 

“How would the whole system cope if one of the very large companies were taken down by a cyber threat?” Bligh asked. “The sort of scale and sophistication of the threat is now moving into something that we haven’t seen before. So, it is a very timely move.  This is now potentially a significant threat to the national security of the country.”   

A major Australian financial services company revealed Tuesday that criminals who stole sensitive customer information last month have demanded a ransom.   

The cyberattack on Latitude Financial resulted in the theft of 14 million customer records, including financial statements, driver’s license numbers and passport numbers.   

The company said that in line with government policy it would not pay a ransom to prevent the data being leaked or sold online.   

The Australian government is considering an updated Cyber Security law that would impose new obligations and standards to protect data across industry and government departments.   

However, officials have warned that cyber criminals are becoming more professional, powerful and effective. 

News Presenter Generated with AI Appears in Kuwait

A Kuwaiti media outlet has unveiled a virtual news presenter generated using artificial intelligence, with plans for it to read online bulletins.   

“Fedha” appeared on the Twitter account of the Kuwait News website Saturday as an image of a woman, her light-colored hair uncovered, wearing a black jacket and white T-shirt.   

“I’m Fedha, the first presenter in Kuwait who works with artificial intelligence at Kuwait News. What kind of news do you prefer? Let’s hear your opinions,” she said in classical Arabic.   

The site is affiliated with the Kuwait Times, founded in 1961 as the Gulf region’s first English-language daily.   

Abdullah Boftain, deputy editor-in-chief for both outlets, said the move is a test of AI’s potential to offer “new and innovative content.”   

In the future Fedha could adopt the Kuwaiti accent and present news bulletins on the site’s Twitter account, which has 1.2 million followers, he said.   

“Fedha is a popular, old Kuwaiti name that refers to silver, the metal. We always imagine robots to be silver and metallic in color, so we combined the two,” Boftain said.    

The presenter’s blonde hair and light-colored eyes reflect the oil-rich country’s diverse population of Kuwaitis and expatriates, according to Boftain.    

“Fedha represents everyone,” he said.   

Her initial 13-second video generated a flood of reactions on social media, including from journalists. 

The rapid rise of AI globally has raised the promise of benefits, such as in health care and the elimination of mundane tasks, but also fears, for example over its potential to spread disinformation, threats to certain jobs and to artistic integrity.   

Kuwait ranked 158 out of 180 countries and territories in the Reporters Without Borders (RSF) 2022 Press Freedom Index. 

Reports: Tesla Plans Shanghai Factory for Power Storage

Electric car maker Tesla Inc. plans to build a factory in Shanghai to produce power-storage devices for sale worldwide, state media reported Sunday.

Plans call for annual production of 10,000 Megapack units, according to the Xinhua News Agency and state television. They said the company made the announcement at a signing ceremony in Shanghai, where Tesla operates an auto factory.

The factory is due to break ground in the third quarter of this year and start production in the second quarter of 2024, the reports said.

Tesla didn’t immediately respond to requests for information.

Mayor in Australia Ready to Sue over Alleged AI Chatbot Defamation

A mayor in Australia’s Victoria state said Friday he may sue the artificial intelligence writing tool ChatGPT after it falsely claimed he’d served time in prison for bribery.  Hepburn Shire Council Mayor Brian Hood was incorrectly identified as the guilty party in a corruption case in the early 2000s.

Brian Hood was the whistleblower in a corruption scandal involving a company partly owned by the Reserve Bank of Australia.  Several people were charged, but Hood was not one of them. That did not stop an article generated by ChatGPT, an automated writing service powered by artificial intelligence. The article cast him as the culprit who was jailed for his part in a conspiracy to bribe foreign officials to win currency printing contracts.

Hood only found out after friends told him. He told the Australian Broadcasting Corp. He then used the chatbot software to see the story for himself.

“After making the inquiry, it generated five or six paragraphs of information.  The really disturbing thing was that some of the paragraphs were accurate, and then were other paragraphs that described things that were completely incorrect.  It told me that I’d be charged with very serious criminal offenses, that I’d be convicted of them and that I had spent 30 months in jail,” he said.

Hood said that if OpenAI, a U.S.-based company that owns the chatbot, does not correct the false claims, he will sue.

It would be the first defamation lawsuit against the automated service.

However, a new version of ChatGPT reportedly avoids the mistakes of its predecessor. It reportedly correctly explains that Hood was a whistleblower who was praised for his actions. Hood’s lawyers say that the defamatory material, which damages the mayor’s reputation, still exists and their efforts to have the mistakes rectified would continue.

A disclaimer on the ChatGPT program warns users that it “may produce inaccurate information about people, places, or facts”.  The technology has exploded in popularity around the world.

OpenAI has yet to comment publicly on the allegations.

Google has announced the launch of its rival to ChatGPT, Bard.  Meta, which owns WhatsApp, Facebook and Instagram, launched its own AI chatbot Blenderbot in the United States last year, while Baidu, the Chinese tech company, has said it was working on an advanced version of its chatbot, Ernie.

Samsung Cutting Memory Chip Production as Profit Slides

Samsung Electronics said Friday it is cutting the production of its computer memory chips in an apparent effort to reduce inventory as it forecasted another quarter of sluggish profit. 

The South Korean technology giant, in a regulatory filing, said it has been reducing the production of certain memory products by unspecified “meaningful levels” to optimize its manufacturing operations, adding it has sufficient supplies of those chips to meet demand fluctuations. 

The company predicted an operating profit of $455 million for the three months through March, which would be a 96% decline from the same period a year earlier. It said sales during the quarter likely fell 19% to $47.7 billion. 

Samsung, which will release its finalized first quarter earnings later this month, said the demand for its memory chips declined as a weak global economy depressed consumer spending on technology products and forced business clients to adjust their inventories to nurse worsening finances. 

Samsung had reported a near 70% drop in profit for the October-December quarter, which partially reflected how global events like Russia’s war on Ukraine and high inflation have rattled technology markets. 

SK Hynix, another major South Korean semiconductor producer, said this week that it sold $1.7 billion in bonds that can be exchanged for the company’s shares to help fund its purchases of chipmaking materials as it weathers the industry’s downswing. SK Hynix had reported an operating loss of $1.28 billion for the October-December period, which marked its first quarterly deficit since 2012. 

“While we have lowered our short-term production plans, we expect solid demand for the mid- to long-term, so we will continue to invest in infrastructure to secure essential levels in clean room capacities and expand investment in research and development to strengthen our technology leadership,” Samsung said. 

Samsung last month announced plans to invest $227 billion over the next 20 years as part of an ambitious South Korean project to build the world’s largest semiconductor manufacturing base near the capital, Seoul. 

The chip-making “mega cluster,” which will be established in Gyeonggi province by 2042, will be anchored by five new semiconductor plants built by Samsung near its existing manufacturing hub. It will aim to attract 150 other companies producing materials and components or designing high-tech chips, according to South Korea’s government. 

The South Korean plan comes as other technology powerhouses, including the United States, Japan and China, are building up their domestic chip manufacturing, deploying protectionist measures, tax cuts and sizeable subsidies to lure investments. 

US Chip Controls Threaten China’s Technology Ambitions

Furious at U.S. efforts that cut off access to technology to make advanced computer chips, China’s leaders appear to be struggling to figure out how to retaliate without hurting their own ambitions in telecoms, artificial intelligence and other industries.

Chinese leader Xi Jinping’s government sees the chips — which are used in everything from phones to kitchen appliances to fighter jets — as crucial assets in its strategic rivalry with Washington and efforts to gain wealth and global influence. Chips are the center of a “technology war,” a Chinese scientist wrote in an official journal in February.

China has its own chip foundries, but they supply only low-end processors used in autos and appliances. The U.S. government, starting under President Donald Trump, has been cutting off access to a growing array of tools to make chips for computer servers, AI and other advanced applications. Japan and the Netherlands have joined in limiting access to technology they say might be used to make weapons.

Xi, in unusually pointed language, accused Washington in March of trying to block China’s development with a campaign of “containment and suppression.” He called on the public to “dare to fight.”

Despite that, Beijing has been slow to retaliate against U.S. companies, possibly to avoid disrupting Chinese industries that assemble most of the world’s smartphones, tablet computers and other consumer electronics. They import more than $300 billion worth of foreign chips every year.

Investing in self-reliance

The ruling Communist Party is throwing billions of dollars at trying to accelerate chip development and reduce the need for foreign technology.

China’s loudest complaint: It is blocked from buying a machine available only from a Dutch company, ASML, that uses ultraviolet light to etch circuits into silicon chips on a scale measured in nanometers, or billionths of a meter. Without that, Chinese efforts to make transistors faster and more efficient by packing them more closely together on fingernail-size slivers of silicon are stalled.

Making processor chips requires some 1,500 steps and technologies owned by U.S., European, Japanese and other suppliers.

“China won’t swallow everything. If damage occurs, we must take action to protect ourselves,” the Chinese ambassador to the Netherlands, Tan Jian, told the Dutch newspaper Financieele Dagblad.

“I’m not going to speculate on what that might be,” Tan said. “It won’t just be harsh words.”

The conflict has prompted warnings the world might split into separate spheres with incompatible technology standards that mean computers, smartphones and other products from one region wouldn’t work in others. That would raise costs and might slow innovation.

“The bifurcation in technological and economic systems is deepening,” Prime Minister Lee Hsien Loong of Singapore said at an economic forum in China last month. “This will impose a huge economic cost.”

U.S.-Chinese relations are at their lowest level in decades due to disputes over security, Beijing’s treatment of Hong Kong, and Muslim ethnic minorities, territorial disputes, and China’s multibillion-dollar trade surpluses.

Chinese industries will “hit a wall” in 2025 or 2026 if they can’t get next-generation chips or the tools to make their own, said Handel Jones, a tech industry consultant.

China “will start falling behind significantly,” said Jones, CEO of International Business Strategies.

EV batteries as leverage

Beijing might have leverage, though, as the biggest source of batteries for electric vehicles, Jones said.

Chinese battery giant CATL supplies U.S. and Europe automakers. Ford Motor Co. plans to use CATL technology in a $3.5 billion battery factory in Michigan.

“China will strike back,” Jones said. “What the public might see is China not giving the U.S. batteries for EVs.”

On Friday, Japan increased pressure on Beijing by joining Washington in imposing controls on exports of chipmaking equipment. The announcement didn’t mention China, but the trade minister said Tokyo doesn’t want its technology used for military purposes.

A Chinese Foreign Ministry spokeswoman, Mao Ning, warned Japan that “weaponizing sci-tech and trade issues” would “hurt others as well as oneself.”

Hours later, the Chinese government announced an investigation of the biggest U.S. memory chip maker, Micron Technology Inc., a key supplier to Chinese factories. The Cyberspace Administration of China said it would look for national security threats in Micron’s technology and manufacturing but gave no details.

The Chinese military also needs semiconductors for its development of stealth fighter jets, cruise missiles and other weapons.

Chinese alarm grew after President Joe Biden in October expanded controls imposed by Trump on chip manufacturing technology. Biden also barred Americans from helping Chinese manufacturers with some processes.

To nurture Chinese suppliers, Xi’s government is stepping up support that industry experts say already amounts to as much as $30 billion a year in research grants and other subsidies.

Biden Eyes AI Dangers, Says Tech Companies Must Make Sure Products are Safe

U.S. President Joe Biden said on Tuesday it remains to be seen whether artificial intelligence (AI) is dangerous, but underscored that technology companies had a responsibility to ensure their products were safe before making them public. 

Biden told science and technology advisers that AI could help in addressing disease and climate change, but it was also important to address potential risks to society, national security and the economy. 

“Tech companies have a responsibility, in my view, to make sure their products are safe before making them public,” he said at the start of a meeting of the President’s Council of Advisors on Science and Technology. When asked if AI was dangerous, he said, “It remains to be seen. It could be.” 

Biden spoke on the same day that his predecessor, former President Donald Trump, surrendered in New York over charges stemming from a probe into hush money paid to a porn actor. 

Biden declined to comment on Trump’s legal woes, and Democratic strategists say his focus on governing will create a politically advantageous split screen of sorts as his former rival, a Republican, deals with his legal challenges. 

The president said social media had already illustrated the harm that powerful technologies can do without the right safeguards. 

“Absent safeguards, we see the impact on the mental health and self-images and feelings and hopelessness, especially among young people,” Biden said.  

He reiterated a call for Congress to pass bipartisan privacy legislation to put limits on personal data that technology companies collect, ban advertising targeted at children, and to prioritize health and safety in product development. 

Shares of companies that employ AI dropped sharply before Biden’s meeting, although the broader market was also selling off on Tuesday.  

Shares of AI software company C3.ai Inc. were down 24%, more than halving a four-session winning streak of nearly 40% through Monday. Thailand security firm Guardforce AI GFAI.O fell 29%, data analytics firm BigBear.ai BBAI.N was down 16% and conversation intelligence company SoundHound AI SOUN.O was down 13% late on Tuesday.  

AI is becoming a hot topic for policymakers. 

The tech ethics group Center for AI and Digital Policy has asked the U.S. Federal Trade Commission to stop OpenAI from issuing new commercial releases of GPT-4, which has wowed and appalled users with its human-like abilities to generate written responses to requests. 

Democratic U.S. Senator Chris Murphy has urged society to pause as it considers the ramifications of AI. 

Last year the Biden administration released a blueprint “Bill of Rights” to help ensure users’ rights are protected as technology companies design and develop AI systems.  

TikTok Fined $15.9M by UK Watchdog for Misuse of Kids’ Data

Britain’s privacy watchdog hit TikTok with a multimillion-dollar penalty Tuesday for misusing children’s data and violating other protections for users’ personal information.

The Information Commissioner’s Office said it issued a fine of $15.9 million to the short-video sharing app, which is wildly popular with young people.

It’s the latest example of tighter scrutiny that TikTok and its parent, Chinese technology company ByteDance, are facing in the West, where governments are increasingly concerned about risks that the app poses to data privacy and cybersecurity.

The British watchdog, which was investigating data breaches between May 2018 and July 2020, said TikTok allowed as many as 1.4 million children in the U.K. under 13 to use the app in 2020, despite the platform’s own rules prohibiting children that young from setting up accounts.

TikTok didn’t adequately identify and remove children under 13 from the platform, the watchdog said. And even though it knew younger children were using the app, TikTok failed to get consent from their parents to process their data, as required by Britain’s data protection laws, the agency said.

“There are laws in place to make sure our children are as safe in the digital world as they are in the physical world. TikTok did not abide by those laws,” Information Commissioner John Edwards said in a press release.

TikTok collected and used personal data of children who were inappropriately given access to the app, he said.

“That means that their data may have been used to track them and profile them, potentially delivering harmful, inappropriate content at their very next scroll,” Edwards said.

The company said it disagreed with the watchdog’s decision.

“We invest heavily to help keep under 13s off the platform and our 40,000-strong safety team works around the clock to help keep the platform safe for our community,” TikTok said in statement. “We will continue to review the decision and are considering next steps.”

TikTok says it has improved its sign-up system since the breaches happened by no longer allowing users to simply declare they are old enough and looking for other signs that an account is used by someone under 13.

The penalty also covered other breaches of U.K. data privacy law.

The watchdog said TikTok failed to properly inform people about how their data is collected, used and shared in an easily understandable way. Without this information, it’s unlikely that young users would be able “to make informed choices” about whether and how to use TikTok, it said.

TikTok also failed to ensure personal data of British users was processed lawfully, fairly and transparently, the regulator said.

TikTok initially faced a 27 million-pound fine, which was reduced after the company persuaded regulators to drop other charges.

U.S. regulators in 2019 fined TikTok, previously known as Music.aly, $5.7 million in a case that involved similar allegations of unlawful collection of children’s personal information.

Also Tuesday, Australia became the latest country to ban TikTok from its government devices, with authorities from the European Union to the United States concerned that the app could share data with the Chinese government or push pro-Beijing narratives

U.S. lawmakers are also considering forcing a sale or even banning it outright as tensions with China grow.

Australia Bans TikTok on Government Devices

Australia said Tuesday it will ban TikTok on government devices, joining a growing list of Western nations cracking down on the Chinese-owned app due to national security fears.   

Attorney-General Mark Dreyfus said the decision followed advice from the country’s intelligence agencies and would begin “as soon as practicable”.   

Australia is the last member of the secretive Five Eyes security alliance to pursue a government TikTok ban, joining its allies the United States, Britain, Canada and New Zealand.   

France, the Netherlands and the European Commission have made similar moves.   

Dreyfus said the government would approve some exemptions on a “case-by-case basis” with “appropriate security mitigations in place”.   

Cybersecurity experts have warned that the app — which boasts more than one billion global users — could be used to hoover up data that is then shared with the Chinese government.   

Surveys have estimated that as many as seven million Australians use the app — or about a quarter of the population.   

In a security notice outlining the ban, the Attorney-General’s Department said TikTok posed “significant security and privacy risks” stemming from the “extensive collection of user data”.   

China condemned the ban, saying it had “lodged stern representations” with Canberra over the move and urging Australia to “provide Chinese companies with a fair, transparent and non-discriminatory business environment”.   

“China has always maintained that the issue of data security should not be used as a tool to generalize the concept of national security, abuse state power and unreasonably suppress companies from other countries,” foreign ministry spokesperson Mao Ning said.   

‘No-brainer’    

But Fergus Ryan, an analyst with the Australian Strategic Policy Institute, said stripping TikTok from government devices was a “no-brainer”.   

“It’s been clear for years that TikTok user data is accessible in China,” Ryan told AFP.    

“Banning the use of the app on government phones is a prudent decision given this fact.”   

The security concerns are underpinned by a 2017 Chinese law that requires local firms to hand over personal data to the state if it is relevant to national security.   

Beijing has denied these reforms pose a threat to ordinary users.   

China “has never and will not require companies or individuals to collect or provide data located in a foreign country, in a way that violates local law”, the foreign ministry’s Mao said in March.   

‘Rooted in xenophobia’   

TikTok has said such bans are “rooted in xenophobia”, while insisting that it is not owned or operated by the Chinese government.    

The company’s Australian spokesman Lee Hunter said it would “never” give data to the Chinese government.   

“No one is working harder to make sure this would never be a possibility,” he told Australia’s Channel Seven.   

But the firm acknowledged in November that some employees in China could access European user data, and in December it said employees had used the data to spy on journalists.   

The app is typically used to share short, lighthearted videos and has exploded in popularity in recent years.   

Many government departments were initially eager to use TikTok as a way to connect with a younger demographic that is harder to reach through traditional media channels.   

New Zealand banned TikTok from government devices in March, saying the risks were “not acceptable in the current New Zealand Parliamentary environment”.    

Earlier this year, the Australian government announced it would be stripping Chinese-made CCTV cameras from politicians’ offices due to security concerns. 

Virgin Orbit Files for Bankruptcy, Seeks Buyer

Virgin Orbit, the satellite launch company founded by Richard Branson, has filed for Chapter 11 bankruptcy and will sell the business, the firm said in a statement Tuesday.   

The California-based company said last week it was laying off 85% of its employees — around 675 people — to reduce expenses due to its inability to secure sufficient funding.   

Virgin Orbit suffered a major setback earlier this year when an attempt to launch the first rocket into space from British soil ended in failure.   

The company had organized the mission with the UK Space Agency and Cornwall Spaceport to launch nine satellites into space.   

On Tuesday, the firm said “it commenced a voluntary proceeding under Chapter 11 of the U.S. Bankruptcy Code… in order to effectuate a sale of the business” and intended to use the process “to maximize value for its business and assets.”   

Last month, Virgin Orbit suspended operations for several days while it held funding negotiations and explored strategic opportunities.   

But at an all-hands meeting on Thursday, CEO Dan Hart told employees that operations would cease “for the foreseeable future,” US media reported at the time.   

“While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business,” Hart said in the company statement on Tuesday.   

“We believe that the cutting-edge launch technology that this team has created will have wide appeal to buyers as we continue in the process to sell the Company.”   

Founded by Branson in 2017, the firm developed “a new and innovative method of launching satellites into orbit,” while “successfully launching 33 satellites into their precise orbit,” Hart added.   

Virgin Orbit’s shares on the New York Stock Exchange were down 3% at 19 cents on Monday evening. 

Germany Could Block ChatGPT if Needed, Says Data Protection Chief

Germany could follow in Italy’s footsteps by blocking ChatGPT over data security concerns, the German commissioner for data protection told the Handelsblatt newspaper in comments published on Monday.

Microsoft-backed MSFT.O OpenAI took ChatGPT offline in Italy on Friday after the national data agency banned the chatbot temporarily and launched an investigation into a suspected breach of privacy rules by the artificial intelligence application. 

“In principle, such action is also possible in Germany,” Ulrich Kelber said, adding that this would fall under state jurisdiction. He did not, however, outline any such plans. 

Kelber said that Germany has requested further information from Italy on its ban. Privacy watchdogs in France and Ireland said they had also contacted the Italian data regulator to discuss its findings. 

“We are following up with the Italian regulator to understand the basis for their action and we will coordinate with all EU data protection authorities in relation to this matter,” said a spokesperson for Ireland’s Data Protection Commissioner (DPC). 

OpenAI had said on Friday that it actively works to reduce personal data in training its AI systems. 

While the Irish DPC is the lead EU regulator for many global technology giants under the bloc’s “one stop shop” data regime, it is not the lead regulator for OpenAI, which has no offices in the EU.

The privacy regulator in Sweden said it has no plans to ban ChatGPT nor is it in contact with the Italian watchdog.

The Italian investigation into OpenAI was launched after a cybersecurity breach last week led to people being shown excerpts of other users’ ChatGPT conversations and their financial information. 

It accused OpenAI of failing to check the age of ChatGPT’s users, who are supposed to be aged 13 or above. Italy is the first Western country to take action against a chatbot powered by artificial intelligence. 

For a nine-hour period, the exposed data included first and last names, billing addresses, credit card types, credit card expiration dates and the last four digits of credit card numbers, according to an email sent by OpenAI to one affected customer and seen by the Financial Times.

NASA to Reveal Crew for 2024 Flight Around the Moon

NASA is to reveal the names on Monday of the astronauts — three Americans and a Canadian — who will fly around the Moon next year, a prelude to returning humans to the lunar surface for the first time in a half century.   

The mission, Artemis II, is scheduled to take place in November 2024 with the four-person crew circling the Moon but not landing on it.   

As part of the Artemis program, NASA aims to send astronauts to the Moon in 2025 — more than five decades after the historic Apollo missions ended in 1972.   

Besides putting the first woman and first person of color on the Moon, the US space agency hopes to establish a lasting human presence on the lunar surface and eventually launch a voyage to Mars.   

NASA administrator Bill Nelson said this week at a “What’s Next Summit” hosted by Axios that he expected a crewed mission to Mars by the year 2040.  

The four members of the Artemis II crew will be announced at an event at 10:00 am (1500 GMT) at the Johnson Space Center in Houston.   

The 10-day Artemis II mission will test NASA’s powerful Space Launch System rocket as well as the life-support systems aboard the Orion spacecraft.   

The first Artemis mission wrapped up in December with an uncrewed Orion capsule returning safely to Earth after a 25-day journey around the Moon.   

During the trip around Earth’s orbiting satellite and back, Orion logged well over 1.6 million kilometers and went farther from Earth than any previous habitable spacecraft.   

Nelson was also asked at the Axios summit whether NASA could stick to its timetable of landing astronauts on the south pole of the Moon in late 2025.   

“Space is hard,” Nelson said. “You have to wait until you know that it’s as safe as possible, because you’re living right on the edge.   

“So I’m not so concerned with the time,” he said. “We’re not going to launch until it’s right.”   

Only 12 people — all of them white men — have set foot on the Moon.