elon musk

elon-musk’s-x-may-succeed-in-blocking-calif.-content-moderation-law-on-appeal

Elon Musk’s X may succeed in blocking Calif. content moderation law on appeal

Judgment call —

Elon Musk’s X previously failed to block the law on First Amendment grounds.

Elon Musk’s X may succeed in blocking Calif. content moderation law on appeal

Elon Musk’s fight defending X’s content moderation decisions isn’t just with hate speech researchers and advertisers. He has also long been battling regulators, and this week, he seemed positioned to secure a potentially big win in California, where he’s hoping to permanently block a law that he claims unconstitutionally forces his platform to justify its judgment calls.

At a hearing Wednesday, three judges in the 9th US Circuit Court of Appeals seemed inclined to agree with Musk that a California law requiring disclosures from social media companies that clearly explain their content moderation choices likely violates the First Amendment.

Passed in 2022, AB-587 forces platforms like X to submit a “terms of service report” detailing how they moderate several categories of controversial content. Those categories include hate speech or racism, extremism or radicalization, disinformation or misinformation, harassment, and foreign political interference, which X’s lawyer, Joel Kurtzberg, told judges yesterday “are the most controversial categories of so-called awful but lawful speech.”

The law would seemingly require more transparency than ever from X, making it easy for users to track exactly how much controversial content X flags and removes—and perhaps most notably for advertisers, how many users viewed concerning content.

To block the law, X sued in 2023, arguing that California was trying to dictate its terms of service and force the company to make statements on content moderation that could generate backlash. X worried that the law “impermissibly” interfered with both “the constitutionally protected editorial judgments” of social media companies, as well as impacted users’ speech by requiring companies “to remove, demonetize, or deprioritize constitutionally protected speech that the state deems undesirable or harmful.”

Any companies found to be non-compliant could face stiff fines of up to $15,000 per violation per day, which X considered “draconian.” But last year, a lower court declined to block the law, prompting X to appeal, and yesterday, the appeals court seemed more sympathetic to X’s case.

At the hearing, Kurtzberg told judges that the law was “deeply threatening to the well-established First Amendment interests” of an “extraordinary diversity of” people, which is why X’s complaint was supported by briefs from reporters, freedom of the press advocates, First Amendment scholars, “conservative entities,” and people across the political spectrum.

All share “a deep concern about a statute that, on its face, is aimed at pressuring social media companies to change their content moderation policies, so as to carry less or even no expression that’s viewed by the state as injurious to its people,” Kurtzberg told judges.

When the court pointed out that seemingly the law simply required X to abide by content moderation policies for each category defined in its own terms of service—and did not compel X to adopt any policy or position that it did not choose—Kurtzberg pushed back.

“They don’t mandate us to define the categories in a specific way, but they mandate us to take a position on what the legislature makes clear are the most controversial categories to moderate and define,” Kurtzberg said. “We are entitled to respond to the statute by saying we don’t define hate speech or racism. But the report also asks about policies that are supposedly, quote, ‘intended’ to address those categories, which is a judgment call.”

“This is very helpful,” Judge Anthony Johnstone responded. “Even if you don’t yourself define those categories in the terms of service, you read the law as requiring you to opine or discuss those categories, even if they’re not part of your own terms,” and “you are required to tell California essentially your views on hate speech, extremism, harassment, foreign political interference, how you define them or don’t define them, and what you choose to do about them?”

“That is correct,” Kurtzberg responded, noting that X considered those categories the most “fraught” and “difficult to define.”

Elon Musk’s X may succeed in blocking Calif. content moderation law on appeal Read More »

elon-musk-says-spacex-and-x-will-relocate-their-headquarters-to-texas

Elon Musk says SpaceX and X will relocate their headquarters to Texas

Home base at Starbase —

The billionaire blamed a California gender identity law for moving SpaceX and X headquarters.

A pedestrian walks past a flown Falcon 9 booster at SpaceX headquarters in Hawthorne, California, on Tuesday, the same day Elon Musk said he will relocate the headquarters to Texas.

Enlarge / A pedestrian walks past a flown Falcon 9 booster at SpaceX headquarters in Hawthorne, California, on Tuesday, the same day Elon Musk said he will relocate the headquarters to Texas.

Elon Musk said Tuesday that he will move the headquarters of SpaceX and his social media company X from California to Texas in response to a new gender identity law signed by California Governor Gavin Newsom.

Musk’s announcement, made via a post on X, follows his decision in 2021 to move the headquarters of the electric car company Tesla from Palo Alto, California, to Austin, Texas, in the wake of coronavirus lockdowns in the Bay Area the year before. Now, two of Musk’s other major holdings are making symbolic moves out of California: SpaceX to the company’s Starbase launch facility near Brownsville, Texas, and X to Austin.

The new gender identity law, signed by Governor Newsom, a Democrat, on Monday, bars school districts in California from requiring teachers to disclose a change in a student’s gender identification or sexual orientation to their parents without the child’s permission. Musk wrote on X that the law was the “final straw” prompting the relocation to Texas, where the billionaire executive and his companies could take advantage of lower taxes and light-touch regulations.

Earlier this year, SpaceX transferred its incorporation from Delaware to Texas after a Delaware judge invalidated his pay package at Tesla.

“Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas,” Musk wrote Tuesday on X.

The first-in-the-nation law in California is a flashpoint in the struggle between conservative school boards concerned about parental rights and proponents for the privacy rights of LGBTQ people.

“I did make it clear to Governor Newsom about a year ago that laws of this nature would force families and companies to leave California to protect their children,” wrote Musk, who on Saturday endorsed former President Donald Trump, the Republican nominee in this year’s presidential election.

In a statement, Newsom’s office said the law “does not allow a student’s name or gender identity to be changed on an official school record without parental consent” and “does not take away or undermine parents’ rights.”

What does this mean for SpaceX?

Musk’s comments on X didn’t mention details about the implications of his companies’ moves to Texas. However, while Tesla’s corporate headquarters relocated to Texas in 2021, the company still produces cars in California and announced a new engineering hub in Palo Alto last year. The situation with SpaceX is likely to be similar.

Since Musk bought Twitter in 2022, he renamed it X, rewrote the network’s policies on content moderation, and laid off most of the company’s staff, reducing its workforce to around 1,500 employees. With vast manufacturing capacities, SpaceX currently has more than 13,000 employees, so a relocation for Musk’s space company would affect more people and potentially be more disruptive than one at X.

SpaceX’s current headquarters in Hawthorne, California, serves as a factory, engineering design center, and mission control for the company’s rockets and spacecraft. Relocating these facilities wouldn’t be easy, but SpaceX may not need to.

Elon Musk says SpaceX and X will relocate their headquarters to Texas Read More »

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SpaceX’s unmatched streak of perfection with the Falcon 9 rocket is over

Numerous pieces of ice fell off the second stage of the Falcon 9 rocket during its climb into orbit from Vandenberg Space Force Base, California.

Enlarge / Numerous pieces of ice fell off the second stage of the Falcon 9 rocket during its climb into orbit from Vandenberg Space Force Base, California.

SpaceX

A SpaceX Falcon 9 rocket suffered an upper stage engine failure and deployed a batch of Starlink Internet satellites into a perilously low orbit after launch from California Thursday night, the first blemish on the workhorse launcher’s record in more than 300 missions since 2016.

Elon Musk, SpaceX’s founder and CEO, posted on X that the rocket’s upper stage engine failed when it attempted to reignite nearly an hour after the Falcon 9 lifted off from Vandenberg Space Force Base, California, at 7: 35 pm PDT (02: 35 UTC).

Frosty evidence

After departing Vandenberg to begin SpaceX’s Starlink 9-3 mission, the rocket’s reusable first stage booster propelled the Starlink satellites into the upper atmosphere, then returned to Earth for an on-target landing on a recovery ship parked in the Pacific Ocean. A single Merlin Vacuum engine on the rocket’s second stage fired for about six minutes to reach a preliminary orbit.

A few minutes after liftoff of SpaceX’s Starlink 9-3 mission, veteran observers of SpaceX launches noticed an unusual build-up of ice around the top of the Merlin Vacuum engine, which consumes a propellant mixture of super-chilled kerosene and cryogenic liquid oxygen. The liquid oxygen is stored at a temperature of several hundred degrees below zero.

Numerous chunks of ice fell away from the rocket as the upper stage engine powered into orbit, but the Merlin Vacuum, or M-Vac, engine appeared to complete its first burn as planned. A leak in the oxidizer system or a problem with insulation could lead to ice accumulation, although the exact cause, and its possible link to the engine malfunction later in flight, will be the focus of SpaceX’s investigation into the failure.

A second burn with the upper stage engine was supposed to raise the perigee, or low point, of the rocket’s orbit well above the atmosphere before releasing 20 Starlink satellites to continue climbing to their operational altitude with their own propulsion.

“Upper stage restart to raise perigee resulted in an engine RUD for reasons currently unknown,” Musk wrote in an update two hours after the launch. RUD (rapid unscheduled disassembly) is a term of art in rocketry that usually signifies a catastrophic or explosive failure.

“Team is reviewing data tonight to understand root cause,” Musk continued. “Starlink satellites were deployed, but the perigee may be too low for them to raise orbit. Will know more in a few hours.”

Telemetry from the Falcon 9 rocket indicated it released the Starlink satellites into an orbit with a perigee just 86 miles (138 kilometers) above Earth, roughly 100 miles (150 kilometers) lower than expected, according to Jonathan McDowell, an astrophysicist and trusted tracker of spaceflight activity. Detailed orbital data from the US Space Force was not immediately available.

Ripple effects

While ground controllers scramble to salvage the 20 Starlink satellites, SpaceX engineers began probing what went wrong with the second stage’s M-Vac engine. For SpaceX and its customers, the investigation into the rocket malfunction is likely the more pressing matter.

SpaceX could absorb the loss of 20 Starlink satellites relatively easily. The company’s satellite assembly line can produce 20 Starlink spacecraft in a few days. But the Falcon 9 rocket’s dependability and high flight rate have made it a workhorse for NASA, the US military, and the wider space industry. An investigation will probably delay several upcoming SpaceX flights.

The first in-flight failure for SpaceX’s Falcon rocket family since June 2015, a streak of 344 consecutive successful launches until tonight.

A lot of unusual ice was observed on the Falcon 9’s upper stage during its first burn tonight, some of it falling into the engine plume. https://t.co/1vc3P9EZjj pic.twitter.com/fHO73MYLms

— Stephen Clark (@StephenClark1) July 12, 2024

Depending on the cause of the problem and what SpaceX must do to fix it, it’s possible the company can recover from the upper stage failure and resume launching Starlink satellites soon. Most of SpaceX’s launches aren’t for external customers, but deploy satellites for the company’s own Starlink network. This gives SpaceX a unique flexibility to quickly return to flight with the Falcon 9 without needing to satisfy customer concerns.

The Federal Aviation Administration, which licenses all commercial space launches in the United States, will require SpaceX to conduct a mishap investigation before resuming Falcon 9 flights.

“The FAA will be involved in every step of the investigation process and must approve SpaceX’s final report, including any corrective actions,” an FAA spokesperson said. “A return to flight is based on the FAA determining that any system, process, or procedure related to the mishap does not affect public safety.”

Two crew missions are supposed to launch on SpaceX’s human-rated Falcon 9 rocket in the next six weeks, but those launch dates are now in doubt.

The all-private Polaris Dawn mission, commanded by billionaire Jared Isaacman, is scheduled to launch on a Falcon 9 rocket on July 31 from NASA’s Kennedy Space Center in Florida. Isaacman and three commercial astronaut crewmates will spend five days in orbit on a mission that will include the first commercial spacewalk outside their Crew Dragon capsule, using new pressure suits designed and built by SpaceX.

NASA’s next crew mission with SpaceX is slated to launch from Florida aboard a Falcon 9 rocket around August 19. This team of four astronauts will replace a crew of four who have been on the International Space Station since March.

Some customers, especially NASA’s commercial crew program, will likely want to see the results of an in-depth inquiry and require SpaceX to string together a series of successful Falcon 9 flights with Starlink satellites before clearing their own missions for launch. SpaceX has already launched 70 flights with its Falcon family of rockets since January 1, an average cadence of one launch every 2.7 days, more than the combined number of orbital launches by all other nations this year.

With this rapid-fire launch cadence, SpaceX could quickly demonstrate the fitness of any fixes engineers recommend to resolve the problem that caused Thursday night’s failure. But investigations into rocket failures often take weeks or months. It was too soon, early on Friday, to know the true impact of the upper stage malfunction on SpaceX’s launch schedule.

SpaceX’s unmatched streak of perfection with the Falcon 9 rocket is over Read More »

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Elon Musk denies tweets misled Twitter investors ahead of purchase

Elon Musk denies tweets misled Twitter investors ahead of purchase

Just before the Fourth of July holiday, Elon Musk moved to dismiss a lawsuit alleging that he intentionally misled Twitter investors in 2022 by failing to disclose his growing stake in Twitter while tweeting about potentially starting his own social network in the weeks ahead of announcing his plan to buy Twitter.

Allegedly, Musk devised this fraudulent scheme to reduce the Twitter purchase price by $200 million, a proposed class action filed by an Oklahoma Firefighters pension fund on behalf of all Twitter investors allegedly harmed claimed. But in another court filing this week, Musk insisted that “all indications”—including those referenced in the firefighters’ complaint—”point to mistake,” not fraud.

According to Musk, evidence showed that he simply misunderstood the Securities Exchange Act when he delayed filing a Rule 13 disclosure of his nearly 10 percent ownership stake in Twitter in March 2022. Musk argued that he believed he was required to disclose this stake at the end of the year, rather than within 10 days after the month in which he amassed a 5 percent stake. He said that previously he’d only filed Rule 13 disclosures as the owner of a company—not as someone suddenly acquiring 5 percent stake.

Musk claimed that as soon as his understanding of the law was corrected—on April 1, when he’d already missed the deadline by about seven days—he promptly stopped trading and filed the disclosure on the next trading day.

“Such prompt and corrective disclosure—within seven trading days of the purported deadline—is not the stuff of a fraudulent scheme to manipulate the market,” Musk’s court filing said.

As Musk sees it, the firefighters’ suit “makes no sense” because it basically alleged that Musk always intended to disclose the supposedly fraudulent scheme, which in the context of his extraordinary wealth, barely saved him any meaningful amount of money when purchasing Twitter.

The idea that Musk “engaged in intentional securities fraud in order to save $200 million is illogical in light of Musk’s eventual $44 billion purchase of Twitter,” Musk’s court filing said. “It defies logic that Musk would commit fraud to save less than 0.5 percent of Twitter’s total purchase price, and 0.1 percent of his net worth, all while knowing that there would be ‘an inevitable day of reckoning’ when he would disclose the truth—which was always his intent.”

It’s much more likely, Musk argued, that “Musk’s acknowledgement of his tardiness is that he was expressly acknowledging a mistake, not publicly conceding a purportedly days-old fraudulent scheme.”

Arguing that all firefighters showed was “enough to adequately plead a material omission and misstatement”—which he said would not be an actionable claim under the Securities Exchange Act—Musk has asked for the lawsuit to be dismissed with prejudice. At most, Musk is guilty of neglect, his court filing said, not deception. Allegedly Musk never “had any intention of avoiding reporting requirements,” his court filing said.

The firefighters pension fund has until August 12 to defend its claims and keep the suit alive, Musk’s court filing noted. In their complaint, the fighterfighteres had asked the court to award damages covering losses, plus interest, for all Twitter shareholders determined to be “cheated out of the true value of their securities” by Musk’s alleged scheme.

Ars could not immediately reach lawyers for Musk or the firefighters pension fund for comment.

Elon Musk denies tweets misled Twitter investors ahead of purchase Read More »

tesla-says-model-3-that-burst-into-flames-in-fatal-tree-crash-wasn’t-defective

Tesla says Model 3 that burst into flames in fatal tree crash wasn’t defective

Tesla says Model 3 that burst into flames in fatal tree crash wasn’t defective

Tesla has denied that “any defect in the Autopilot system caused or contributed” to the 2022 death of a Tesla employee, Hans von Ohain, whose Tesla Model 3 burst into flames after the car suddenly veered off a road and crashed into a tree.

“Von Ohain fought to regain control of the vehicle, but, to his surprise and horror, his efforts were prevented by the vehicle’s Autopilot features, leaving him helpless and unable to steer back on course,” a wrongful death lawsuit filed in May by von Ohain’s wife, Nora Bass, alleged.

In Tesla’s response to the lawsuit filed Thursday, the carmaker also denied that the 2021 vehicle had any defects, contradicting Bass’ claims that Tesla knew that the car should have been recalled but chose to “prioritize profits over consumer safety.”

As detailed in her complaint, initially filed in a Colorado state court, Bass believes the Tesla Model 3 was defective in that it “did not perform as safely as an ordinary consumer would have expected it to perform” and “the benefits of the vehicle’s design did not outweigh the risks.”

Instead of acknowledging alleged defects and exploring alternative designs, Tesla marketed the car as being engineered “to be the safest” car “built to date,” Bass’ complaint said.

Von Ohain was particularly susceptible to this marketing, Bass has said, because he considered Tesla CEO Elon Musk to be a “brilliant man,” The Washington Post reported. “We knew the technology had to learn, and we were willing to be part of that,” Bass said, but the couple didn’t realize how allegedly dangerous it could be to help train “futuristic technology,” The Post reported.

In Tesla’s response, the carmaker defended its marketing of the Tesla Model 3, denying that the company “engaged in unfair and deceptive acts or practices.”

“The product in question was not defective or unreasonably dangerous,” Tesla’s filing said.

Insisting in its response that the vehicle was safe when it was sold, Tesla again disputed Bass’ complaint, which claimed that “at no time after the purchase of the 2021 Tesla Model 3 did any person alter, modify, or change any aspect or component of the vehicle’s design or manufacture.” Contradicting this, Tesla suggested that the car “may not have been in the same condition at the time of the crash as it was at the time when it left Tesla’s custody.”

The Washington Post broke the story about von Ohain’s fatal crash, reporting that it may be “the first documented fatality linked to the most advanced driver assistance technology offered” by Tesla. In response to Tesla’s filing, Bass’ attorney, Jonathan Michaels, told The Post that his team is “committed to advocating fiercely for the von Ohain family, ensuring they receive the justice they deserve.”

Michaels told The Post that perhaps as significant as alleged autonomous driving flaws, the Tesla Model 3 was also allegedly defective “because of the intensity of the fire that ensued after von Ohain hit the tree, which ultimately caused his death.” According to the Colorado police officer looking into the crash, Robert Madden, the vehicle fire was among “the most intense” he’d ever investigated, The Post reported.

Lawyers for Bass and Tesla did not immediately respond to Ars’ request for comment.

Tesla says Model 3 that burst into flames in fatal tree crash wasn’t defective Read More »

elon-musk-rushes-to-debut-x-payments-as-tech-issues-hamper-creator-payouts

Elon Musk rushes to debut X payments as tech issues hamper creator payouts

Elon Musk rushes to debut X payments as tech issues hamper creator payouts

Elon Musk is still frantically pushing to launch X payment services in the US by the end of 2024, Bloomberg reported Tuesday.

Launching payment services is arguably one of the reasons why Musk paid so much to acquire Twitter in 2022. His rebranding of the social platform into X revives a former dream he had as a PayPal co-founder who fought and failed to name the now-ubiquitous payments app X. Musk has told X staff that transforming the company into a payments provider would be critical to achieving his goal of turning X into a so-called everything app “within three to five years.”

Late last year, Musk said it would “blow” his “mind” if X didn’t roll out payments by the end of 2024, so Bloomberg’s report likely comes as no big surprise to Musk’s biggest fans who believe in his vision. At that time, Musk said he wanted X users’ “entire financial lives” on the platform before 2024 ended, and a Bloomberg review of “more than 350 pages of documents and emails related to money transmitter licenses that X Payments submitted in 11 states” shows approximately how close he is to making that dream a reality on his platform.

X Payments, a subsidiary of X, reports that X already has money transmitter licenses in 28 states, but X wants to secure licenses in all states before 2024 winds down, Bloomberg reported.

Bloomberg’s review found that X has a multiyear plan to gradually introduce payment features across the US—including “Venmo-like” features to send and receive money, as well as make purchases online—but hopes to begin that process this year. Payment providers like Stripe and Adyen have already partnered with X to process its transactions, Bloomberg reported, and X has told regulators that it “anticipated” that its payments system would also rely on those partnerships.

Musk initially had hoped to launch payments globally in 2024, but regulatory pressures forced him to tamp down those ambitions, Bloomberg reported. States like Massachusetts, for example, required X to resubmit its application only after more than half of US states had issued licenses, Bloomberg found.

Ultimately, Musk wants X to become the largest financial institution in the world. Bloomberg reported that he plans to do this by giving users a convenient “digital dashboard” through X “that will serve as a centralized hub for all payments activity” online. To make sure that users keep their money stashed on the platform, Musk plans to offer “extremely high yield” savings accounts that X Payments’ chief information security officer, Chris Stanley, teased in April would basically guarantee that funds are rarely withdrawn from X.

“The end goal is if you ever have any incentive to take money out of our system, then we have failed,” Stanley posted on X.

Stanley compared X payments to Venmo and Apple Pay and said X’s plan for its payment feature was to “evolve” so that X users “can gain interest, buy products,” and “eventually use it to buy things in stores.”

Bloomberg confirmed that X does not plan to charge users any fees to send or receive payments, although Musk has told regulators that offering payments will “boost” X’s business by increasing X users’ “participation and engagement.” Analysts told Bloomberg that X could also profit off payments by charging merchants fees or by “offering banking services, such as checking accounts and debit cards.”

Musk has told X staff that he plans to offer checking accounts, debit cards, and even loans through X, saying that “if you address all things that you want from a finance standpoint, then we will be the people’s financial institution.”

X CEO Linda Yaccarino has been among the biggest cheerleaders for Musk’s plan to turn X into a bank, writing in a blog last year, “We want money on X to flow as freely as information and conversation.”

Elon Musk rushes to debut X payments as tech issues hamper creator payouts Read More »

apple-and-openai-currently-have-the-most-misunderstood-partnership-in-tech

Apple and OpenAI currently have the most misunderstood partnership in tech

A man talks into a smartphone.

Enlarge / He isn’t using an iPhone, but some people talk to Siri like this.

On Monday, Apple premiered “Apple Intelligence” during a wide-ranging presentation at its annual Worldwide Developers Conference in Cupertino, California. However, the heart of its new tech, an array of Apple-developed AI models, was overshadowed by the announcement of ChatGPT integration into its device operating systems.

Since rumors of the partnership first emerged, we’ve seen confusion on social media about why Apple didn’t develop a cutting-edge GPT-4-like chatbot internally. Despite Apple’s year-long development of its own large language models (LLMs), many perceived the integration of ChatGPT (and opening the door for others, like Google Gemini) as a sign of Apple’s lack of innovation.

“This is really strange. Surely Apple could train a very good competing LLM if they wanted? They’ve had a year,” wrote AI developer Benjamin De Kraker on X. Elon Musk has also been grumbling about the OpenAI deal—and spreading misinformation about it—saying things like, “It’s patently absurd that Apple isn’t smart enough to make their own AI, yet is somehow capable of ensuring that OpenAI will protect your security & privacy!”

While Apple has developed many technologies internally, it has also never been shy about integrating outside tech when necessary in various ways, from acquisitions to built-in clients—in fact, Siri was initially developed by an outside company. But by making a deal with a company like OpenAI, which has been the source of a string of tech controversies recently, it’s understandable that some people don’t understand why Apple made the call—and what it might entail for the privacy of their on-device data.

“Our customers want something with world knowledge some of the time”

While Apple Intelligence largely utilizes its own Apple-developed LLMs, Apple also realized that there may be times when some users want to use what the company considers the current “best” existing LLM—OpenAI’s GPT-4 family. In an interview with The Washington Post, Apple CEO Tim Cook explained the decision to integrate OpenAI first:

“I think they’re a pioneer in the area, and today they have the best model,” he said. “And I think our customers want something with world knowledge some of the time. So we considered everything and everyone. And obviously we’re not stuck on one person forever or something. We’re integrating with other people as well. But they’re first, and I think today it’s because they’re best.”

The proposed benefit of Apple integrating ChatGPT into various experiences within iOS, iPadOS, and macOS is that it allows AI users to access ChatGPT’s capabilities without the need to switch between different apps—either through the Siri interface or through Apple’s integrated “Writing Tools.” Users will also have the option to connect their paid ChatGPT account to access extra features.

As an answer to privacy concerns, Apple says that before any data is sent to ChatGPT, the OS asks for the user’s permission, and the entire ChatGPT experience is optional. According to Apple, requests are not stored by OpenAI, and users’ IP addresses are hidden. Apparently, communication with OpenAI servers happens through API calls similar to using the ChatGPT app on iOS, and there is reportedly no deeper OS integration that might expose user data to OpenAI without the user’s permission.

We can only take Apple’s word for it at the moment, of course, and solid details about Apple’s AI privacy efforts will emerge once security experts get their hands on the new features later this year.

Apple’s history of tech integration

So you’ve seen why Apple chose OpenAI. But why look to outside companies for tech? In some ways, Apple building an external LLM client into its operating systems isn’t too different from what it has previously done with streaming video (the YouTube app on the original iPhone), Internet search (Google search integration), and social media (integrated Twitter and Facebook sharing).

The press has positioned Apple’s recent AI moves as Apple “catching up” with competitors like Google and Microsoft in terms of chatbots and generative AI. But playing it slow and cool has long been part of Apple’s M.O.—not necessarily introducing the bleeding edge of technology but improving existing tech through refinement and giving it a better user interface.

Apple and OpenAI currently have the most misunderstood partnership in tech Read More »

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Elon Musk’s X defeats Australia’s global takedown order of stabbing video

Elon Musk’s X defeats Australia’s global takedown order of stabbing video

Australia’s safety regulator has ended a legal battle with X (formerly Twitter) after threatening approximately $500,000 daily fines for failing to remove 65 instances of a religiously motivated stabbing video from X globally.

Enforcing Australia’s Online Safety Act, eSafety commissioner Julie Inman-Grant had argued it would be dangerous for the videos to keep spreading on X, potentially inciting other acts of terror in Australia.

But X owner Elon Musk refused to comply with the global takedown order, arguing that it would be “unlawful and dangerous” to allow one country to control the global Internet. And Musk was not alone in this fight. The legal director of a nonprofit digital rights group called the Electronic Frontier Foundation (EFF), Corynne McSherry, backed up Musk, urging the court to agree that “no single country should be able to restrict speech across the entire Internet.”

“We welcome the news that the eSafety Commissioner is no longer pursuing legal action against X seeking the global removal of content that does not violate X’s rules,” X’s Global Government Affairs account posted late Tuesday night. “This case has raised important questions on how legal powers can be used to threaten global censorship of speech, and we are heartened to see that freedom of speech has prevailed.”

Inman-Grant was formerly Twitter’s director of public policy in Australia and used that experience to land what she told The Courier-Mail was her “dream role” as Australia’s eSafety commissioner in 2017. Since issuing the order to remove the video globally on X, Inman-Grant had traded barbs with Musk (along with other Australian lawmakers), responding to Musk labeling her a “censorship commissar” by calling him an “arrogant billionaire” for fighting the order.

On X, Musk arguably got the last word, posting, “Freedom of speech is worth fighting for.”

Safety regulator still defends takedown order

In a statement, Inman-Grant said early Wednesday that her decision to discontinue proceedings against X was part of an effort to “consolidate actions,” including “litigation across multiple cases.” She ultimately determined that dropping the case against X would be the “option likely to achieve the most positive outcome for the online safety of all Australians, especially children.”

“Our sole goal and focus in issuing our removal notice was to prevent this extremely violent footage from going viral, potentially inciting further violence and inflicting more harm on the Australian community,” Inman-Grant said, still defending the order despite dropping it.

In court, X’s lawyer Marcus Hoyne had pushed back on such logic, arguing that the eSafety regulator’s mission was “pointless” because “footage of the attack had now spread far beyond the few dozen URLs originally identified,” the Australian Broadcasting Corporation reported.

“I stand by my investigators and the decisions eSafety made,” Inman-Grant said.

Other Australian lawmakers agree the order was not out of line. According to AP News, Australian Minister for Communications Michelle Rowland shared a similar statement in parliament today, backing up the safety regulator while scolding X users who allegedly took up Musk’s fight by threatening Inman-Grant and her family. The safety regulator has said that Musk’s X posts incited a “pile-on” from his followers who allegedly sent death threats and exposed her children’s personal information, the BBC reported.

“The government backs our regulators and we back the eSafety Commissioner, particularly in light of the reprehensible threats to her physical safety and the threats to her family in the course of doing her job,” Rowland said.

Elon Musk’s X defeats Australia’s global takedown order of stabbing video Read More »

nvidia-emails:-elon-musk-diverting-tesla-gpus-to-his-other-companies

Nvidia emails: Elon Musk diverting Tesla GPUs to his other companies

why not just make cars? —

The Tesla CEO is accused of diverting resources from the company again.

A row of server racks

Enlarge / Tesla will have to rely on its Dojo supercomputer for a while longer after CEO Elon Musk diverted 12,000 Nvidia GPU clusters to X instead.

Tesla

Elon Musk is yet again being accused of diverting Tesla resources to his other companies. This time, it’s high-end H100 GPU clusters from Nvidia. CNBC’s Lora Kolodny reports that while Tesla ordered these pricey computers, emails from Nvidia staff show that Musk instead redirected 12,000 GPUs to be delivered to his social media company X.

It’s almost unheard of for a profitable automaker to pivot its business into another sector, but that appears to be the plan at Tesla as Musk continues to say that the electric car company is instead destined to be an AI and robotics firm instead.

Does Tesla make cars or AI?

That explains why Musk told investors in April that Tesla had spent $1 billion on GPUs in the first three months of this year, almost as much as it spent on R&D, despite being desperate for new models to add to what is now an old and very limited product lineup that is suffering rapidly declining sales in the US and China.

Despite increasing federal scrutiny here in the US, Tesla has reduced the price of its controversial “full-self driving” assist, and the automaker is said to be close to rolling out the feature in China. (Questions remain about how many Chinese Teslas would be able to utilize this feature given that a critical chip was left out of 1.2 million cars built there during the chip shortage.)

Perfecting this driver assist would be very valuable to Tesla, which offers FSD as a monthly subscription as an alternative to a one-off payment. The profit margins for subscription software services vastly outstrip the margins Tesla can make selling physical cars, which dropped to just 5.5 percent for Q1 2024. And Tesla says that massive GPU clusters are needed to develop FSD’s software.

Isn’t Tesla desperate for Nvidia GPUs?

Tesla has been developing its own in-house supercomputer for AI, called Dojo. But Musk has previously said that computer could be redundant if Tesla could source more H100s. “If they could deliver us enough GPUs, we might not need Dojo, but they can’t because they’ve got so many customers,” Musk said during a July 2023 investor day.

Which makes his decision to have his other companies jump all the more notable. In December, an internal Nvidia memo seen by CNBC said, “Elon prioritizing X H100 GPU cluster deployment at X versus Tesla by redirecting 12k of shipped H100 GPUs originally slated for Tesla to X instead. In exchange, original X orders of 12k H100 slated for Jan and June to be redirected to Tesla.”

X and the affiliated xAi are developing generative AI products like large language models.

Not the first time

This is not the first time that Musk has been accused of diverting resources (and his time) from publicly held Tesla to his other privately owned enterprises. In December 2022, US Sen. Elizabeth Warren (D-Mass.) wrote to Tesla asking Tesla to explain whether Musk was diverting Tesla resources to X (then called Twitter):

This use of Tesla employees raises obvious questions about whether Mr. Musk is appropriating resources from a publicly traded firm, Tesla, to benefit his own private company, Twitter. This, of course, would violate Mr. Musk’s legal duty of loyalty to Tesla and trigger questions about the Tesla Board’s responsibility to prevent such actions, and may also run afoul other “anti-tunneling rules that aim to prevent corporate insiders from extracting resources from their firms.”

Musk giving time meant (and compensated) for by Tesla to SpaceX, X, and his other ventures was also highlighted as a problem by the plaintiffs in a successful lawsuit to overturn a $56 billion stock compensation package.

And last summer, the US Department of Justice opened an investigation into whether Musk used Tesla resources to build a mansion for the CEO in Texas; the probe has since expanded to cover behavior stretching back to 2017.

These latest accusations of misuse of Tesla resources come at a time when Musk is asking shareholders to reapprove what is now a $46 billion stock compensation plan.

Nvidia emails: Elon Musk diverting Tesla GPUs to his other companies Read More »

musk-can’t-avoid-testifying-in-sec-probe-of-twitter-buyout-by-playing-victim

Musk can’t avoid testifying in SEC probe of Twitter buyout by playing victim

Musk can’t avoid testifying in SEC probe of Twitter buyout by playing victim

After months of loudly protesting a subpoena, Elon Musk has once again agreed to testify in the US Securities and Exchange Commission’s investigation into his acquisition of Twitter (now called X).

Musk tried to avoid testifying by arguing that the SEC had deposed him twice before, telling a US district court in California that the most recent subpoena was “the latest in a long string of SEC abuses of its investigative authority.”

But the court did not agree that Musk testifying three times in the SEC probe was either “abuse” or “overly burdensome.” Especially since the SEC has said it’s seeking a follow-up deposition after receiving “thousands of new documents” from Musk and third parties over the past year since his last depositions. And according to an order requiring Musk and the SEC to agree on a deposition date from US district judge Jacqueline Scott Corley, “Musk’s lament does not come close to meeting his burden of proving ‘the subpoena was issued in bad faith or for an improper purpose.'”

“Under Musk’s theory of reasonableness, the SEC must wait to depose a percipient witness until it has first gathered all relevant documents,” Corley wrote in the order. “But the law does not support that theory. Nor does common sense. In an investigation, the initial depositions can help an agency identify what documents are relevant and need to be requested in the first place.”

Corley’s court filing today shows that Musk didn’t even win his fight to be deposed remotely. He has instead agreed to sit for no more than five hours in person, which the SEC argued “will more easily allow for assessment of Musk’s demeanor and be more efficient as it avoids delays caused by technology.” (Last month, Musk gave a remote deposition where the Internet cut in and out, and Musk repeatedly dropped off the call.)

Musk’s deposition will be scheduled by mid-July. He is expected to testify on his Twitter stock purchases prior to his purchase of the platform, as well as his other investments surrounding the acquisition.

The SEC has been probing Musk’s Twitter stock purchases to determine if he violated a securities law that requires disclosures within 10 days from anyone who buys more than a 5 percent stake in a company. Musk missed that deadline by 11 days, as he amassed close to a 10 percent stake, and a proposed class action lawsuit from Twitter shareholders has suggested that he intentionally missed the deadline to keep Twitter stock prices artificially low while preparing for his Twitter purchase.

In an amended complaint filed this week, an Oklahoma firefighters pension fund—which sold more than 14,000 Twitter shares while Musk went on his buying spree—laid out Musk’s alleged scheme. The firefighters claim that the “goal” of Musk’s strategy was to purchase Twitter “cost effectively” and that this scheme was carried out by an unnamed Morgan Stanley banker who was motivated “to acquire billions of dollars of Twitter securities without tipping off the market” to curry favor with Musk.

As a seeming result, the firefighters’ complaint alleged that Morgan Stanley “pocketed over $1,460,000 in commissions just for executing” the “secret Twitter stock acquisition scheme.” And Morgan Stanley’s work seemingly pleased Musk so much that he went back for financial advising on the Twitter deal, the complaint alleged, paying Morgan Stanley an “estimated $42 million in fees.”

Messages from the banker show he was determined to keep the trading “absofuckinglutely quiet” to avoid the prospect that “anyone sniff anything out.”

Because of this secrecy, Twitter “investors suffered enormous damages” when Musk “belatedly disclosed his Twitter interests,” and “the price of Twitter’s stock predictably skyrocketed,” the complaint said.

“Ultimately, Musk went from owning zero shares of Twitter stock as of January 28, 2022 to spending over $2.6 billion to secretly acquire over 70 million shares” on April 4, 2022, the complaint said.

Musk can’t avoid testifying in SEC probe of Twitter buyout by playing victim Read More »

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Twitter URLs redirect to x.com as Musk gets closer to killing the Twitter name

Goodbye Twitter.com —

X.com stops redirecting to Twitter.com over a year after company name change.

An app icon and logo for Elon Musk's X service.

Getty Images | Kirill Kudryavtsev

Twitter.com links are now redirecting to the x.com domain as Elon Musk gets closer to wiping out the Twitter brand name over a year and half after buying the company.

“All core systems are now on X.com,” Musk wrote in an X post today. X also displayed a message to users that said, “We are letting you know that we are changing our URL, but your privacy and data protection settings remain the same.”

Musk bought Twitter in October 2022 and turned it into X Corp. in April 2023, but the social network continued to use Twitter.com as its primary domain for more than another year. X.com links redirected to Twitter.com during that time.

There were still remnants of Twitter after today’s change. This morning, I noticed a support link took me to a help.twitter.com page. The link subsequently redirected to a help.x.com page after I sent a message to X’s public relations email, though the timing could be coincidence. After sending that message to [email protected], I got the standard auto-reply from [email protected], just as I have in the past.

You might still encounter Twitter links that don’t redirect to x.com, depending on which browser you use. The Verge said it is “seeing a mix of results depending upon browser choice and whether you’re logged in or not.”

I had no trouble accessing x.com on desktop browsers today. But in Safari on iPhone, I received error messages when trying to access either twitter.com or x.com without first logging in. I eventually succeeded in logging in and was able to view content, but I remained at twitter.com in the iPhone browser instead of being redirected to x.com.

This will presumably be sorted out, but the awkward Twitter-to-X transition has previously been accompanied by technical problems. In early April, Musk’s service started automatically changing “twitter.com” to “x.com” in links posted by users in the iOS app. But the automatic text replacement initially applied to any URL ending in “twitter.com” even if it wasn’t actually a twitter.com link, which meant that phishers could have taken advantage by registering misleading domain names.

Twitter URLs redirect to x.com as Musk gets closer to killing the Twitter name Read More »

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Elon Musk’s X can’t invent its own copyright law, judge says

Who owns X data? Everyone but X —

Judge rules copyright law governs public data scraping, not X’s terms.

Elon Musk’s X can’t invent its own copyright law, judge says

A US district judge William Alsup has dismissed Elon Musk’s X Corp’s lawsuit against Bright Data, a data-scraping company accused of improperly accessing X (formerly Twitter) systems and violating both X terms and state laws when scraping and selling data.

X sued Bright Data to stop the company from scraping and selling X data to academic institutes and businesses, including Fortune 500 companies.

According to Alsup, X failed to state a claim while arguing that companies like Bright Data should have to pay X to access public data posted by X users.

“To the extent the claims are based on access to systems, they fail because X Corp. has alleged no more than threadbare recitals,” parroting laws and findings in other cases without providing any supporting evidence, Alsup wrote. “To the extent the claims are based on scraping and selling of data, they fail because they are preempted by federal law,” specifically standing as an “obstacle to the accomplishment and execution of” the Copyright Act.

The judge found that X Corp’s argument exposed a tension between the platform’s desire to control user data while also enjoying the safe harbor of Section 230 of the Communications Decency Act, which allows X to avoid liability for third-party content. If X owned the data, it could perhaps argue it has exclusive rights to control the data, but then it wouldn’t have safe harbor.

“X Corp. wants it both ways: to keep its safe harbors yet exercise a copyright owner’s right to exclude, wresting fees from those who wish to extract and copy X users’ content,” Alsup wrote.

If X got its way, Alsup warned, “X Corp. would entrench its own private copyright system that rivals, even conflicts with, the actual copyright system enacted by Congress” and “yank into its private domain and hold for sale information open to all, exercising a copyright owner’s right to exclude where it has no such right.”

That “would upend the careful balance Congress struck between what copyright owners own and do not own,” Alsup wrote, potentially shrinking the public domain.

“Applying general principles, this order concludes that the extent to which public data may be freely copied from social media platforms, even under the banner of scraping, should generally be governed by the Copyright Act, not by conflicting, ubiquitous terms,” Alsup wrote.

Bright Data CEO Or Lenchner said in a statement provided to Ars that Alsup’s decision had “profound implications in business, research, training of AI models, and beyond.”

“Bright Data has proven that ethical and transparent scraping practices for legitimate business use and social good initiatives are legally sound,” Lenchner said. “Companies that try to control user data intended for public consumption will not win this legal battle.”

Alsup pointed out that X’s lawsuit was “not looking to protect X users’ privacy” but rather to block Bright Data from interfering with its “own sale of its data through a tiered subscription service.”

“X Corp. is happy to allow the extraction and copying of X users’ content so long as it gets paid,” Alsup wrote.

In a sea of vague claims that scraping is “unfair,” perhaps most deficient in X’s complaint, Alsup suggested, was X’s failure to allege that Bright Data’s scraping impaired its services or that X suffered any damages.

“There are no allegations of servers harmed or identities misrepresented,” Alsup wrote. “Additionally, there are no allegations of any damage resulting from automated or unauthorized access.”

X will be allowed to amend its complaint and appeal. The case may be strengthened if X can show evidence of damages or prove that the scraping overburdened X or otherwise deprived X users of their use of the platform in a way that could damage X’s reputation.

But as it currently stands, X’s arguments in many ways appear rather “bare,” Alsup wrote, while its terms of service make crystal clear to users that “[w]hat’s yours is yours—you own your Content.”

By attempting to exclude Bright Data from accessing public X posts owned by X users, X also nearly “obliterated” the “fair use” provision of the Copyright Act, “flouting” Congress’ intent in passing the law, Alsup wrote.

“Only by receiving permission and paying X Corp. could Bright Data, its customers, and other X users freely reproduce, adapt, distribute, and display what might (or might not) be available for taking and selling as fair use,” Alsup wrote. “Thus, Bright Data, its customers, and other X users who wanted to make fair use of copyrighted content would not be able to do so.”

A win for X could have had dire consequences for the Internet, Alsup suggested. In dismissing the complaint, Alsup cited an appeals court ruling “that giving social media companies “free rein to decide, on any basis, who can collect and use data—data that the companies do not own, that they otherwise make publicly available to viewers, and that the companies themselves collect and use—risks the possible creation of information monopolies that would disserve the public interest.”

Because that outcome was averted, Lenchner is celebrating Bright Data’s win.

“Bright Data’s victory over X makes it clear to the world that public information on the web belongs to all of us, and any attempt to deny the public access will fail,” Lenchner said.

In 2023, Bright Data won a similar lawsuit lobbed by Meta over scraping public Facebook and Instagram data. These lawsuits, Lenchner alleged, “are used as a monetary weapon to discourage collecting public data from sites, so conglomerates can hoard user-generated public data.”

“Courts recognize this and the risks it poses of information monopolies and ownership of the Internet,” Lenchner said.

X did not respond to Ars’ request to comment.

Elon Musk’s X can’t invent its own copyright law, judge says Read More »