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SUMMARY NEW HOMEPOD COMING SOON? WHAT APPLE INTELLIGENCE MEANS FOR THE SMART SPEAKER’S FUTURE APPLE KILLS OFF ITS BUY NOW, PAY LATER SE ARVICE BARELY A YEAR AFTER LAUNCH NEXT GEN - IOS 18 PERSONALIZATION & INTELLIGENCE ACROSS MULTIPLE FEATURES & APPS NVIDIA’S STOCK MARKET VALUE TOPPED $3.3 TRILLION. HOW IT BECAME NO. 1 IN THE S&P 500, BY THE NUMBERS 08 34 58 106
US CHIPMAKER ONSEMI WILL INVEST $2 BILLION IN A CHIP PRODUCTION FACILITY IN THE... 28 AI STARTUP PERPLEXITY WANTS TO UPEND SEARCH BUSINESS. NEWS OUTLET FORBES SAYS... 44 AI EXPERIMENTATION IS HIGH RISK, HIGH REWARD FOR LOW-PROFILE POLITICAL CAMPAIGNS 88 OPENAI APPOINTS FORMER TOP US CYBERWARRIOR PAUL NAKASONE TO ITS BOARD OF... 120 BOEING CEO DEFENDS HIS SAFETY RECORD, SPARS WITH SENATORS AND APOLOGIZES TO... 128 FISKER FILES FOR BANKRUPTCY PROTECTION, THE SECOND ELECTRIC VEHICLE MAKER TO DO... 142 CALIFORNIA FINES AMAZON NEARLY $6M, ALLEGING ILLEGAL WORK QUOTAS AT 2 WAREHOUSES 150 JUDGE OVERSEEING NFL ‘SUNDAY TICKET’ TRIAL VOICES FRUSTRATIONS OVER THE CASE 156 FEDERAL TRADE COMMISSION REFERS COMPLAINT ABOUT TIKTOK’S ADHERENCE TO CHILD... 174 CALIFORNIA GOVERNOR WANTS TO RESTRICT SMARTPHONE USAGE IN SCHOOLS 180 KEEPING CHILDREN SAFE ON SOCIAL MEDIA: WHAT PARENTS SHOULD KNOW TO PROTECT... 188 TOP 10 TV SHOWS 164 TOP 10 BOOKS 166 TOP 10 SONGS 168 TOP 10 ALBUMS 170 TOP 10 MUSIC VIDEOS 172


NEW HOMEPOD COMING SOON? WHAT APPLE INTELLIGENCE MEANS FOR THE SMART SPEAKER’S FUTURE 08
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The highlight of this year’s WWDC was undoubtedly Apple Intelligence. Apple dedicated nearly half of its presentation to discussing its unique take on artificial intelligence, outlining the features it would enable and the promising future ahead. The focus was on three key products: the iPhone, iPad, and Mac. This led many to wonder about other Apple devices like Vision Pro, Apple Watch, and HomePod. While the Vision Pro and Apple Watch were excluded from the discussion, it’s likely that Apple has future AI plans for these devices. However, the status of the HomePod remains uncertain. Will the HomePod support the new Siri? Is a new model in development? WILL CURRENT HOMEPODS SUPPORT APPLE INTELLIGENCE? Apple currently offers two HomePod models: the HomePod (2nd generation) and the HomePod mini. Both models feature chips that seem unlikely to support Apple Intelligence. This means no new and improved Siri, and likely no integration with ChatGPT. For context, Apple has specified that its new AI features require either an A17 Pro chip, which is currently exclusive to the iPhone 15 Pro and Pro Max, or an M1 chip or later, found in recent Macs and iPads. The HomePod features an S7 chip, while the HomePod mini has an S5 chip—both comparable to the chips used in the Apple Watch. 10
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Even if the HomePod lineup included the latest S9 chip from the Apple Watch Series 9, it still might not be powerful enough to support Apple Intelligence. While it is uncertain if Apple could enable certain Siri-related AI features on these less powerful chips, a more likely solution may be in the works: new, more powerful HomePods. EXPECTED FEATURES FOR NEW HOMEPOD HARDWARE Although it seems unlikely that Apple would include an M4 chip in the next-generation HomePod, an M1 or A17 Pro chip could be a realistic expectation. A more powerful chip would enable the new HomePod hardware to fully support Siri’s enhanced capabilities found on the iPhone, iPad, and Mac. 15
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These capabilities include: • Richer Language Understanding: Allowing users to interact more naturally with Siri, without needing to follow a specific script. • Context Awareness: Enabling Siri to understand and act upon specific messages, emails, and other communications, fully aware of their content. • Complex Multi-Step Requests: Permitting users to execute multiple actions with a single command. • ChatGPT Support: Providing enhanced responses for requests better handled by OpenAI’s service. These Apple Intelligence features could be further enhanced by the rumored addition of a built-in touch display on the HomePod, providing a more interactive and versatile user experience. 19
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FUTURE OF APPLE INTELLIGENCE ON HOMEPOD As of now, Apple has not announced any plans regarding the integration of Apple Intelligence into the HomePod. However, if the revamped Siri proves successful on other devices this fall, the HomePod may quickly become outdated. The current silence about the HomePod is understandable, as the focus remains on Apple’s more popular platforms. The absence of AI advancements on other Apple devices will eventually need to be addressed. ROOM FOR HOMEPODS IN APPLE’S FUTURE LINEUP Apple’s fall lineup is expected to be filled with new hardware, including the iPhone 16, Watch Series 10, new AirPods, and updated Macs and iPads. Whether there is room for new HomePods in this packed schedule remains uncertain. However, the potential for new and improved HomePod models, equipped with the latest AI features, could rejuvenate interest in Apple’s smart speaker lineup. The introduction of more powerful HomePod models could ensure compatibility with the latest Apple Intelligence features, providing users with a more seamless and integrated experience across their devices. 21
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As Apple continues to innovate and expand its AI capabilities, the HomePod could play a significant role in the company’s ecosystem, offering enhanced functionality and a richer user experience. While the future of Apple Intelligence on the HomePod remains uncertain, the potential for new hardware with advanced AI capabilities presents an exciting possibility. As Apple gears up for a busy fall season, the inclusion of updated HomePods could add another dimension to its already impressive lineup of products. 24
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US CHIPMAKER ONSEMI WILL INVEST $2 BILLION IN A CHIP PRODUCTION FACILITY IN THE CZECH REPUBLIC 28
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The U.S. chipmaker onsemi is planning a multiyear investment of up $2 billion in its production facility in the Czech Republic, the company and the Czech government said this week. The government said the money will be invested in the company’s existing production facility in the eastern Czech town of Roznov pod Radhostem. It’s the biggest single foreign investment in the country since the split of Czechoslovakia in 1993. The company based in Scottsdale, Arizona, currently produces 10 million chips a day in Roznov. The investment would increase production by hundreds of percent, the government said. It said the number of jobs created in Roznov will increase to 3,000 from the current 1,700. The company said the move “would solidify advanced power semiconductor supply chain for its European and global customer base.” “The site would produce the company’s intelligent power semiconductors that are essential for improving the energy efficiency of applications in electric vehicles, renewable energy and AI data centers,” it said in a statement. The car industry is a key part of the Czech economy. Germany’s Volkswagen that owns Skoda Auto, the country’s biggest export company, is a strategic partner for onsemi. The Czech government said it will negotiate with onsemi about incentives it can offer to the company. 31
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Image: Laurenz Heymann 34
APPLE KILLS OFF ITS BUY NOW, PAY LATER SERVICE BARELY A YEAR AFTER LAUNCH 35
Apple is discontinuing its buy now, pay later service known as Apple Pay Later barely a year after its initial launch in the U.S., and will rely on companies who already dominate the industry like Affirm and Klarna. It’s an acknowledgement from a company known for producing hit products that building a financial services business from scratch as Apple has been doing for several years is difficult and highly competitive. Apple Pay Later launched with fanfare in March 2023 as a way for iPhone customers to split purchases of up to $1,000 into four equal payments with no fees or interest. The service was Apple’s answer to the growing popularity of buy now, pay later services globally, and considered a sizeable threat to companies like Klarna, Affirm and others. 36
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But Apple Pay Later was only available where Apple Pay was accepted whereas the other buy now, pay later companies had deeply integrated themselves into millions of merchant websites. In an acknowledgement of how popular buy now, pay later services had become, Apple said at its developer’s conference this month that it would start allowing banks to offer buy now, pay later plans to their customers through Apple Pay and Apple Wallet. Affirm would be integrated directly into Apple Wallet, and Apple customers would be able to open an Affirm account directly. “With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S.,” Apple said this week. “Our focus continues to be on providing our users with access to easy, secure and private payment options with Apple Pay, and this solution will enable us to bring flexible payments to more users, in more places across the globe, in collaboration with Apple Pay enabled banks and lenders.” 39
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Apple executives as recently as this month had indicated that the company still had plans for Apple Pay Later despite announcing plans to integrate Affirm directly into Apple Wallet. Apple Pay Later was unique because Apple needed to create its own bank to offer the loans. The Apple Card is issued by Goldman Sachs, which means Goldman ultimately decides who gets approved and what spending limits are for each customer. Apple has discontinued any new Apple Pay Later loans, but customers who have existing Apple Pay Later loans will be able to manage them inside Apple Pay. 41


AI STARTUP PERPLEXITY WANTS TO UPEND SEARCH BUSINESS. NEWS OUTLET FORBES SAYS IT’S RIPPING THEM OFF The artificial intelligence startup Perplexity AI has raised tens of millions of dollars from the likes of Jeff Bezos and other prominent tech investors for its mission to rival Google in the business of searching for information. But its AI-driven search chatbot is already facing challenges as some news media companies object to its business practices. It is also competing against t ech giants Google, and now Apple, which are increasingly fusing similar AI features into their core products. 44
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Perplexity CEO Aravind Srinivas has spent much of the past week defending the company after it published a summarized news story with information and similar wording to a Forbes investigative story but without citing the media outlet or asking for its permission. Forbes said it later found similar “knock-off” stories lifted from other publications. The Associated Press separately found another Perplexity product feature inventing fake quotes from real people, including a former elected town official from Martha’s Vineyard falsely quoted to say he didn’t want the Massachusetts island to become a destination for marijuana. “I never said that,” said Bill Rossi, a former member of the island town of Chilmark’s select board. Srinivas told that his company is trying to build positive relationships with news publishers that ensure their news content “reaches more people.” “We can definitely coexist and help each other,” he said. Asked about Forbes, he said his product “never ripped off content from anybody. Our engine is not training on anyone else’s content,” in part because the company is simply aggregating what other companies’ AI systems generate. “We are actually more of an aggregator of information and providing it to the people with the right attribution,” Srinivas said. But, he added, “It was accurately pointed out by Forbes that they preferred a more prominent highlighting of the source. We took that feedback immediately and updated changes 47
that day itself. And now the sources are more prominently highlighted.” Perplexity also revealed this week that it has been seeking revenue-sharing partnerships that would pay news publishers a portion of Perplexity’s advertising revenue each time an outlet’s news content is referenced as a source. Randall Lane, chief content officer of Forbes Media, called the dispute an “inflection point” in the conversation about AI. “It’s a case study in where we’re heading,” Lane told. “If the people who are leading the charge don’t have a fundamental respect for the hard work of doing proprietary reporting, and keeping people informed with value-added content, we’ve got a big problem.” A self-described “AI bull” who believes that the technology could help make many news organizations more efficient, Lane said the dispute between Perplexity and Forbes is important because it is a “metaphor for what can happen if the people controlling the AI don’t respect the people doing the work.” Perplexity bills itself as a search engine while “acting like a media company and publishing a story” that only Forbes had reported, Lane said. “The whole thing was very disingenuous. And what we didn’t hear was, ‘Oops, yeah we messed that one up and we need to do better,’” he said. “Instead, it was just putting out more content, little tweaks to the model and treating journalism like it’s just a commodity to be manufactured.” Srinivas, a computer scientist and former AI researcher at OpenAI and Google, co-founded 48
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Perplexity in the summer of 2022, not long before the AI image-generator Stable Diffusion and OpenAI’s ChatGPT began sparking the public’s fascination with the possibilities of generative AI. Inspired, in part, by his childhood love of Wikipedia, he described Perplexity as “like a marriage of Wikipedia and ChatGPT” that can instantly answer a person’s questions without the “huge cluttered mess” of Google’s conventional search results. “You ask a question, you get an answer with clean sources, and there’s like three or four suggested (follow-up) questions and that’s it,” he said of Perplexity. “That way people’s minds can be free from distractions, and they can just focus on learning and digging deeper.” The company sells a subscription for premium features and is planning to start an advertisingbased service as it grows its user base. “We are not profitable as a company today, but we are also more sustainably run than foundation model companies because we do not train our own foundation models,” which requires huge amounts of computing power, he said. Perplexity relies on existing AI large language models such as those built by OpenAI, Anthropic and Meta Platforms, the parent company of Facebook; and then “post-trains” them. “We shape them to be really good summarizers,” he said. It’s not always clear where the summarized information is coming from. One Perplexity feature called Writing — which enables a user 51
to “generate text or chat without searching the web” — produces lengthy and unsourced commentary, often in the style of a news article. Tests of the feature asking it to write about the lack of marijuana on Martha’s Vineyard led it to produce a 465-word document that resembled a news article and included fabricated quotations from the former town official and another real person. We’re not repeating the false quotes in order to avoid perpetuating misinformation. Srinivas said that the Writing feature of Perplexity is a “minor use case” that was intended for helping to compose essays or correcting grammar when primary source information isn’t needed. He said it’s “more prone to hallucinations” — a common problem with AI large language models — because it isn’t tethered to the web search capabilities of Perplexity’s core product. “There is no doubt that generative AI is upending journalism, content creation, and search,” said Sarah Kreps, director of Cornell University’s Tech Policy Institute. She pointed to Google’s new, Perplexity-like approach that summarizes answers based on information pulled from crawling the web, as an example. That, too, led to false information and forced Google to make adjustments to the product after its public release. “But their whole model of advertising is based on sending people to websites,” she said in an email. “Why will people go to websites if they can have the one-stop-shop of the answer in the AI output?” Srinivas claimed that “a lot of people get referrals from Perplexity, and I’m happy that 52
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they’re getting referrals from a new player in the internet.” For now, much of that benefit may be aspirational. Perplexity’s worldwide user base has grown rapidly this year to more than 85 million web visits in May, but that barely registers compared to the billions of users of ChatGPT and other popular platforms from Microsoft and Google, according to data from Similarweb. The debate demonstrates the “uncertain and challenging times” for online content creators in general and journalism in particular because aggregators only work if publications such as Forbes exist, said Stephen Lind, an associate professor at the University of Southern California’s Marshall School of Business. Using AI as a synthesizing tool works for widespread dissemination of information until “you run out of originals,” he said. “There are whole companies or whole applications that are also doing this, where they are rolling out new services without fully thinking through the implications or best practices or safeguards because they’re rolling out applications for industries that maybe they’re not native to,” he said. Lind said it’s good that companies like Perplexity are “taking at least some steps to course correct when an industry or a user pushes back.” But some of the changes should have been baked in from the beginning, he added. 54
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iOS 18: PERSONALIZATION & INTELLIGENCE ACROSS MULTIPLE FEATURES & APPS 58
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At this year’s WWDC, Apple introduced iOS 18, a significant update set to redefine the user experience on iPhone. With extensive customization features and a sophisticated Apple Intelligence tool, our iPhones are more personal, capable, and brighter than ever. 60
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CUSTOMIZATION One of the most striking things about iOS 18 is its significant leap in customization, allowing users unprecedented control over their devices’ appearance and functionality. The Home Screen, Lock Screen, and Control Center have been overhauled to offer more flexibility and personalization. Users can now position apps and widgets in any available space on the Home Screen, placing them directly above the dock for instant access or framing their wallpaper perfectly. App icons and widgets can adopt a new aesthetic with dark or tinted effects and be resized for a personalized touch. The Lock Screen also gets a makeover, enabling users to rearrange the control buttons at the bottom of the screen. For those with the iPhone 15 Pro and iPhone 15 Pro Max, the new Action button can be configured to invoke various controls, enhancing accessibility. The Control Center has been redesigned to offer quicker access to frequently used controls, such as media playback and home automation, and allows for customization with third-party app controls. This redesign introduces a new controls gallery where users can adjust control sizes and create custom groups, enhancing the user experience. 64
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ENHANCING THE OPERATING SYSTEM One of the standout updates in iOS 18 is the comprehensive redesign of the Photos app. Users will benefit from a unified view that simplifies the browsing experience. The app automatically organizes photos into collections based on themes, making finding and reliving special moments easier. Collections can be pinned for quick access, and a new carousel view showcases daily highlights featuring favorite people, pets, and places. The app’s autoplay feature breathes life into the photo library, and users can customize their experience by organizing and pinning collections according to their preferences. iOS 18 brings transformative updates to the Messages app, including new text effects that animate letters, words, phrases, and emojis, making conversations more engaging. Users can now format text with bold, underline, italics, and strikethrough, adding a new dimension to message composition. A significant advancement is the introduction of satellite messaging. This feature, powered by the same technology that underpins existing iPhone satellite capabilities allows users to send and receive messages when cellular and Wi-Fi connections are unavailable. This makes iOS 18 a vital tool for staying connected in remote areas or during emergencies. To enhance communication with non-Apple devices, iOS 18 supports RCS (Rich Communication Services), which provides richer media and more reliable group messaging compared to traditional SMS and MMS, bridging the gap between Apple and non-Apple users. 68
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The Mail app in iOS 18 has received some attention. It features advanced on-device categorization, sorting emails into categories such as Primary, Transactions, Updates, and Promotions, ensuring users can easily manage their inboxes. A new digest view aggregates emails from businesses, making keeping track of essential communications more straightforward. On the other hand, Safari receives significant updates, including a Highlights feature that surfaces critical information about webpages. The redesigned Reader offers an improved, distraction-free reading experience, with summaries and tables of contents for articles. And there are new apps for iOS, too, with Apple launching a standalone Passwords app, which builds on the legacy of Keychain, making it easier for users to manage their passwords, passkeys, Wi-Fi passwords, and verification codes. The app alerts users to security weaknesses, such as easily guessed or reused passwords, enhancing security. iOS 18 strengthens user privacy with new features such as locked and hidden apps, ensuring that sensitive information remains secure. Users can now hide apps, moving them to a locked folder that keeps their content out of sight. The update also allows users to share specific contacts with apps and offers a seamless way to connect third-party accessories without compromising the privacy of other devices on their network. 72
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There are numerous other enhancements, including Apple Maps updates, offering detailed hiking information for U.S. national parks, and supporting offline access to custom walking routes. Game Mode, on the other hand, journaling, such as instant equation-solving and audio transcription. Calendar and Health now deeply integrates tasks with reminders and provides updated medical information accessibility. Emergency SOS introduces live improves gaming performance and accessory responsiveness. Apple Pay introduces new payment methods and features like Tap to Cash for easy money transfers between iPhones, and AirPods offers personalized spatial audio and improved call quality. The Notes and Journal apps add new features for note-taking and video sharing with emergency dispatchers, and the Home app offers guest access to smart home controls and new energy management features. Finally, there are new accessibility features like Eye Tracking and Music Haptics for enhanced user experiences. 77
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APPLE INTELLIGENCE This year’s ‘One More Thing’ was undoubtedly one of the most significant announcements in iOS history: Apple Intelligence. This revolutionary personal intelligence system combines generative models with personal context to deliver tailored and intuitive experiences. This system is deeply integrated into iOS 18 and Apple’s other operating systems. It offers new system-wide Writing Tools that enable users to rewrite, proofread, and summarise text across various apps. Image Playground offers a fun way to create images using styles like Animation, Illustration, or Sketch, integrating seamlessly into apps like Messages. Siri benefits from these advancements, becoming more natural and contextually aware. Users can now communicate with Siri via text or voice and switch between modes effortlessly. Apple has also set a new benchmark for privacy in AI with Private Cloud Compute, ensuring that data processed for personal intelligence tasks is not stored or accessible to Apple, maintaining user confidentiality and trust. 81
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The developer beta of iOS 18 is available now, with a public beta coming next month. The official release will be this autumn, and it will be free for iPhone Xs and later models. Apple Intelligence will initially be available in beta on selected devices with M1 chips or newer. Make sure you’re following AppleMagazine for the latest news and information. 85


AI EXPERIMENTATION IS HIGH RISK, HIGH REWARD FOR LOW-PROFILE POLITICAL CAMPAIGNS 88
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Adrian Perkins was running for reelection as the mayor of Shreveport, Louisiana, when he was surprised by a harsh campaign hit piece. The satirical TV commercial, paid for by a rival political action committee, used artificial intelligence to depict Perkins as a high school student who had been called into the principal’s office. Instead of giving a tongue-lashing for cheating on a test or getting in a fight, the principal blasted Perkins for failing to keep communities safe and create jobs. The video superimposed Perkins’ face onto the body of an actor playing him. Although the ad was labeled as being created with “deep learning computer technology,” Perkins said it was powerful and resonated with voters. He didn’t have enough money or campaign staff to counteract it, and thinks it was one of many reasons he lost the 2022 race. A representative for the group behind the ad did not respond to a request for comment. “One hundred percent the deepfake ad affected our campaign because we were a down-ballot, less resourced place,” said Perkins, a Democrat. “You had to pick and choose where you put your efforts.” While such attacks are staples of the roughand-tumble of political campaigning, the ad targeting Perkins was notable: It’s believed to be one of the first examples of an AI deepfake deployed in a political race in the U.S. It also foreshadowed a dilemma facing candidates in scores of state and local races this year as generative AI has become more widespread and easier to use. 90
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The technology — which can do everything from streamlining mundane campaign tasks to creating fake images, video or audio — already has been deployed in some national races around the country and has spread far more widely in elections across the globe. Despite its power as a tool to mislead, efforts to regulate it have been piecemeal or delayed, a gap that could have the greatest impact on lower-profile races down the ballot. Artificial intelligence is a double-edged sword for candidates running such campaigns. Inexpensive, user-friendly AI models can help them save money and time on some of their day-to-day tasks. But they often don’t have the staff or expertise to combat AI-generated falsehoods, adding to fears that an eleventhhour deepfake could fool enough voters to tilt races decided by narrow margins. “AI-enabled threats affect close races and lowprofile contests where slight shifts matter and where there are often fewer resources correcting misleading stories,” said Josh Lawson, director of AI and democracy for the Aspen Institute. NATIONAL SAFEGUARDS LACKING Some local candidates already have faced criticism for deploying AI in misleading ways, from a Republican state senate candidate in Tennessee who used an AI headshot to make himself look slimmer and younger to Philadelphia’s Democratic sheriff, whose reelection campaign promoted fake news stories generated by ChatGPT. One challenge in separating fact from fiction is the decline of local news outlets, which in many 93
places has meant far less coverage of candidates running for state and local office, especially reporting that digs into candidates’ backgrounds and how their campaigns operate. The lack of familiarity with candidates could make voters more open to believing fake information, said U.S. Sen. Mark Warner of Virginia. The Democrat, who has worked extensively on AI-related legislation as chair of the Senate Intelligence Committee, said AI-generated misinformation is easier to spot and combat in high-profile races because they are under greater scrutiny. When an AI-generated robocall impersonated President Joe Biden to discourage voters from going to the polls in the New Hampshire primary this year, it was quickly reported in the media and investigated, resulting in serious consequences for the players behind it. More than a third of states have passed laws regulating artificial intelligence in politics, and legislation aimed specifically at fighting election-related deepfakes has received bipartisan support in each state where it has passed, according to the nonprofit consumer advocacy group Public Citizen. But Congress has yet to act, despite several bipartisan groups of lawmakers proposing such legislation. “Congress is pathetic,” said Warner, who said he was pessimistic about Congress passing any legislation protecting elections from AI interference this year. Travis Brimm, executive director of the Democratic Association of Secretaries of State, called the specter of AI misinformation in 94
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down-ballot races an evolving issue in which people are “still working to figure out the best way forward.” “This is a real challenge, and that’s why you’ve seen Democratic secretaries jump to address it and pass real legislation with real penalties around the abuse of AI,” Brimm said. A spokesperson for the Republican Secretaries of State Committee did not respond the request for comment. HOW DO YOU REGULATE INTEGRITY? While experts and lawmakers worry about how generative AI attacks could skew an election, some candidates for state or local office said AI tools have proven invaluable to their campaigns. The powerful computer systems, software or processes can emulate aspects of human work and cognition. Glenn Cook, a Republican running for a state legislative seat in southeastern Georgia, is less well-known and has much less campaign cash than the incumbent he is facing in a runoff election. So, he has invested in a digital consultant who creates much of his campaign’s content using inexpensive, publicly available generative AI models. On his website, AI-generated articles are peppered with AI-generated images of community members smiling and chatting, none of whom actually exist. AI-generated podcast episodes use a cloned version of his voice to narrate his policy positions. Cook said he reviews everything before it is made public. The savings — in both time and 97
money — have let him knock on more doors in the district and attend more in-person campaign events. “My wife and I did 4,500 doors down here,” he said. “It frees you up to do a lot.” Cook’s opponent, Republican state Rep. Steven Sainz, said he thinks Cook “hides behind what amounts to a robot instead of authentically communicating his opinions to voters.” “I’m not running on artificially generated promises, but real-world results,” Sainz said, adding that he isn’t using AI in his own campaign. Republican voters in the district weren’t sure what to make of the use of AI in the race, but said they cared most about the candidates’ values and outreach on the campaign trail. Patricia Rowell, a retired Cook voter, said she likes that he’s been in her community three or four times while campaigning, while Mike Perry, a self-employed Sainz voter, said he’s felt more personal contact from Sainz. He said the expanded use of AI in politics is inevitable, but wondered how voters would be able to differentiate between what’s true and what’s not. “It’s free speech, you know, and I don’t want to discourage free speech, but it comes down to the integrity of the people putting it out,” he said. “And I don’t know how you regulate integrity. It’s pretty tough.” LOCAL CAMPAIGNS ARE VULNERABLE Digital firms that market AI models for political campaigns told the most of the AI use in local 98
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campaigns so far is minimal and designed to boost efficiency for tedious tasks, such as analyzing survey data or drafting social media copy that meets a certain word limit. Political consultants are increasingly dabbling with AI tools to see what works, according to a new report from a team led by researchers at the University of Texas at Austin. More than 20 political operatives from across the ideological spectrum told researchers they were experimenting with generative AI models in this year’s campaigns, even though they also feared that less scrupulous actors might be doing the same. “Local-level elections will be so much more challenging because people will be attacking,” said Zelly Martin, the report’s lead author and a senior research fellow at the university’s Center for Media Engagement. “And what recourse do they have to fight back, as opposed to Biden and Trump who have many more resources to fend off attacks?” There are immense differences in staffing, money and expertise between down-ballot campaigns — for state legislator, mayor, school board or any other local position —- and races for federal office. Where a local campaign might have just a handful of staffers, competitive U.S. House and Senate campaigns may have dozens and presidential operations can balloon to the thousands by the end of the campaign. The campaigns for Biden and former President Donald Trump are both experimenting with AI to enhance fundraising and voter outreach efforts. Mia Ehrenberg, a spokesperson for the Biden campaign, said they also have a plan to 100
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debunk AI-generated misinformation. A Trump campaign spokesperson did not respond to the questions about their plans for handling AIgenerated misinformation. Perkins, the former Shreveport mayor, had a small team that decided to ignore the attack and keep campaigning when the deepfake of him being hauled into the principal’s office hit local TV. He said he viewed the deepfake ad against him as a typical dirty trick at the time, but the rise of AI in just two years since his campaign has made him realize the technology’s power as a tool to mislead voters. “In politics, people are always going to push the envelope a bit to be effective,” he said. “We had no idea how significant it would be.” 103


NVIDIA’S STOCK MARKET VALUE TOPPED $3.3 TRILLION. HOW IT BECAME NO. 1 IN THE S&P 500, BY THE NUMBERS 106
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Nvidia’s startling ascent in the stock market reached another milestone this week as the chipmaker rose to become the most valuable company in the S&P 500. Investors now say the company is worth over $3.3 trillion. Over the past three years, Nvidia has experienced significant growth and innovation, particularly in the realm of artificial intelligence (AI). The company’s most notable achievements include the release of the H100 AI GPU, which is critical for AI model training and has become a cornerstone in data centers globally. Nvidia’s data center division, primarily driven by AI, has witnessed explosive growth, with quarterly revenue reaching $22.1 billion by early 2024—a 265% increase from the previous year. This shift underscores Nvidia’s transition from its historical focus on GPUs for gaming to becoming a leader in AI hardware. In terms of product development, Nvidia has consistently pushed the envelope with new releases. The introduction of the GeForce RTX 40 SUPER Series GPUs in late 2023 exemplified their commitment to high-performance gaming, integrating advanced AI capabilities such as DLSS 3.5 Ray Reconstruction and NVIDIA Reflex. Beyond gaming, Nvidia’s professional visualization sector also saw growth, with the adoption of Omniverse, a platform for collaborative 3D content creation, and the release of the RTX 2000 Ada Generation GPU, which enhances AI and graphics performance for professional workstations. Nvidia’s financial performance has mirrored its technological advancements. The company’s 108
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annual revenue for the fiscal year 2024 was reported at $60.9 billion, more than doubling from the previous year, driven largely by the demand for AI hardware. This growth has solidified Nvidia’s position as an industrial leader in AI, with strategic partnerships and deployments across various sectors including cloud computing, automotive, and healthcare. These achievements highlight Nvidia’s pivotal role in the ongoing AI revolution, positioning it at the forefront of technological innovation and market leadership. Nvidia’s hardware has also played a significant role in the cryptocurrency mining boom, particularly for Bitcoin and other cryptocurrencies like Ethereum. The company’s GPUs, known for their parallel processing capabilities, are highly efficient at the complex calculations required for mining. During the cryptocurrency bull markets of recent years, demand for Nvidia’s GPUs surged as miners sought to maximize their mining capabilities. This demand was so pronounced that Nvidia introduced specific mining processors, such as the CMP (Cryptocurrency Mining Processor) series, to cater to this market while attempting to alleviate the impact on GPU availability for gamers and other traditional users. Despite Nvidia’s attempts to separate gaming and mining markets, the popularity of their gaming GPUs for mining continued to influence sales and market dynamics. At the peak of the cryptocurrency boom, GPUs like the GeForce RTX 3080 and RTX 3090 111
were highly sought after by miners, leading to widespread shortages and inflated prices. This situation highlighted the dual-use nature of Nvidia’s products and the challenge of balancing supply between different high-demand sectors. The company’s revenue from cryptocurrency mining, although not as publicly emphasized as its other sectors, contributed significantly to its overall financial performance during these periods. However, the volatility of the cryptocurrency market also posed challenges. Fluctuations in cryptocurrency prices often led to corresponding swings in demand for mining hardware. For instance, the downturn in cryptocurrency prices in late 2022 and 2023 saw a reduction in mining activity, which in turn affected Nvidia’s sales in this segment. To address these challenges, Nvidia has continued to innovate and adapt its strategies, including implementing hash rate limiters on gaming GPUs to discourage their use for mining, thereby attempting to maintain a steady supply for their core gaming and professional markets. This dynamic interaction between Nvidia’s hardware and the cryptocurrency mining industry underscores the broader impact of emerging technologies on traditional hardware markets. Nvidia has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue more than tripled in the latest quarter from the same period a year earlier. 112
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NUMBERS The company’s journey to be one of the most prominent players in AI has produced some eyepopping numbers. Here’s a look: $3.334 TRILLION Nvidia’s total market value this week. It edged past Microsoft ($3.317 trillion). Apple is the third most-valuable company ($3.286 trillion). One year ago, the company had just crossed the $1 trillion threshold. $113 BILLION The one-day increase in Nvidia’s market value on Tuesday. $135.58 Nvidia’s closing stock price Tuesday. Two weeks ago the stock traded at more than $1,200, but the company completed a 10-for-1 stock split after trading closed on June 7. That gave each investor nine additional shares for every share they already owned. Companies with a high stock price often conduct stock splits to make the stock more affordable for investors. $119.9 BILLION Analysts’ estimate for Nvidia’s revenue for the fiscal year that ends in January 2025. That would be about double its revenue for fiscal 2024 and more than four times its receipts the year before that. 115
53.4% Nvidia’s estimated net margin, or the percentage of revenue that gets turned into profit. Looked at another way, about 53 cents of every $1 in revenue Nvidia took in last year went to its bottom line. By comparison, Apple’s net margin was 26.3% in its most recent quarter and Microsoft’s was 36.4%. Both those companies have significantly higher revenue than Nvidia, however. 32% How much of the S&P 500’s gain for the year through May came only from Nvidia. ELEVEN The number of companies other than Nvidia that were once the most valuable in the S&P 500, going back to 1926, according to S&P Dow Jones Indices. Among them: AT&T, IBM and Walmart. 116
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OPENAI APPOINTS FORMER TOP US CYBERWARRIOR PAUL NAKASONE TO ITS BOARD OF DIRECTORS 121
OpenAI has appointed a former top U.S. cyberwarrior and intelligence official to its board of directors, saying he will help protect the ChatGPT maker from “increasingly sophisticated bad actors.” Retired Army Gen. Paul Nakasone was the commander of U.S. Cyber Command and the director of the National Security Agency before stepping down earlier this year. He joins an OpenAI board of directors that’s still picking up new members after upheaval at the San Francisco artificial intelligence company forced a reset of the board’s leadership last year. The previous board had abruptly fired CEO Sam Altman and then was itself replaced as he returned to his CEO role days later. OpenAI reinstated Altman to its board of directors in March and said it had “full confidence” in his leadership after the conclusion of an outside investigation into the company’s turmoil. OpenAI’s board is technically a nonprofit but also governs its rapidly growing business. 122
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Nakasone is also joining OpenAI’s new safety and security committee — a group that’s supposed to advise the full board on “critical safety and security decisions” for its projects and operations. The safety group replaced an earlier safety team that was disbanded after several of its leaders quit. Nakasone was already leading the Army branch of U.S. Cyber Command when then-President Donald Trump in 2018 picked him to be director of the NSA, one of the nation’s top intelligence posts, and head of U.S. Cyber Command. He maintained the dual roles when President Joe Biden took office in 2021. He retired in February. 127
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BOEING CEO DEFENDS HIS SAFETY RECORD, SPARS WITH SENATORS AND APOLOGIZES TO CRASH VICTIMS’ RELATIVES 129
Boeing CEO David Calhoun defended the company’s safety record during a contentious Senate hearing this week, while lawmakers accused him of placing profits over safety, failing to protect whistleblowers, and even getting paid too much. Relatives of people who died in two crashes of Boeing 737 Max jetliners were in the room, some holding photos of their loved ones, to remind the CEO of the stakes. Calhoun began his remarks by standing, turning to face the families, and apologizing “for the grief that we have caused,” and vowing to focus on safety. Calhoun’s appearance was the first before Congress by any high-ranking Boeing official since a panel blew out of a 737 Max during an Alaska Airlines flight in January. No one was seriously injured in the incident, but it raised fresh concerns about the company’s bestselling commercial aircraft. The tone of the hearing before the Senate investigations subcommittee was set hours earlier, when the panel released a 204-page report with new allegations from a whistleblower who said he worries that defective parts could be going into 737s. The whistleblower is the latest in a string of current and former Boeing employees to raise concerns about the company’s manufacturing processes, which federal officials are investigating. “This hearing is a moment of reckoning,” the subcommittee chairman, Richard Blumenthal, D-Conn., said. “It’s about a company, a once iconic company, that somehow lost its way.” Sen. Josh Hawley, R-Mo., placed the blame squarely on Calhoun, saying that the man 130
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who became CEO in January 2020 had been too focused on the bottom line. “You are cutting corners, you are eliminating safety procedures, you are sticking it to your employees, you are cutting back jobs because you are trying to squeeze very piece of profit you can out of this company,” Hawley said, his voice rising. “You are strip-mining Boeing.” Hawley repeatedly mentioned Calhoun’s compensation for last year, valued at $32.8 million, and asked the CEO why he hasn’t resigned. “Senator, I’m sticking this through. I’m proud of having taken this job. I’m proud of our safety record, and I’m proud of our Boeing people,” replied Calhoun, who has announced that he will step down by year end. Hawley interrupted. “You’re proud of the safety record?” he asked with incredulity. “I am proud of every action we have taken,” Calhoun responded. Senators pressed Calhoun about accusations that Boeing managers retaliated against employees who reported safety concerns. They asked the CEO if he ever spoke with any whistleblowers. He replied that he had not, but agreed it would be a good idea. The latest whistleblower, Sam Mohawk, a quality assurance investigator at Boeing’s 737 assembly plant near Seattle, told the subcommittee that “nonconforming” parts — ones that could be defective or aren’t properly documented — could be winding up in 737 Max jets. Potentially more troubling for the company, Mohawk charged that Boeing hid evidence after the Federal Aviation Administration told the 132
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company it planned to inspect the plant in June 2023. “Once Boeing received such a notice, it ordered the majority of the (nonconforming) parts that were being stored outside to be moved to another location,” Mohawk said, according to the report. “Approximately 80% of the parts were moved to avoid the watchful eyes of the FAA inspectors.” The parts were later moved back or lost, Mohawk said. They included rudders, wing flaps and other parts that are crucial in controlling a plane. A Boeing spokesperson said the company got the subcommittee report late Monday night and was reviewing the claims. The FAA said it would “thoroughly investigate” the allegations. A spokesperson said the agency has received more reports of safety concerns from Boeing employees since the Jan. 5 blowout on the Alaska Airlines Max. The 737 Max has a troubled history. After Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia, killing 346 people, the FAA and other regulators grounded the aircraft worldwide for more than a year and a half. The Justice Department is considering whether to prosecute Boeing for violating terms of a settlement it reached with the company in 2021 over allegations that it misled regulators who approved the plane. Mohawk told the Senate subcommittee that the number of unacceptable parts has exploded since production of the Max resumed following the crashes. He said the increase led supervisors to tell him and other workers to “cancel” records that indicated the parts were not suitable to be installed on planes. 135
The FAA briefly grounded some Max planes again after January’s mid-air blowout of a plug covering an emergency exit on the Alaska Airlines plane. The agency and the National Transportation Safety Board opened separate investigations of Boeing that are continuing. Calhoun said Boeing has responded to the Alaska accident by slowing production, encouraging employees to report safety concerns, stopping assembly lines for a day to let workers talk about safety, and appointing a retired Navy admiral to lead a quality review. Late last month, Boeing delivered an improvement plan ordered by the FAA. Calhoun defended the company’s safety culture while acknowledging that it “is far from perfect.” The drumbeat of bad news for Boeing has continued in the past week. The FAA said it was investigating how falsely documented titanium parts got into Boeing’s supply chain, the company disclosed that fasteners were incorrectly installed on the fuselages of some jets, and federal officials examined “substantial” damage to a Southwest Airlines 737 Max after an unusual mid-flight control issue. Howard McKenzie, Boeing’s chief engineer, said during the hearing that the issue affecting the Southwest plane — which he did not describe in detail — was limited to that plane. Blumenthal first asked Calhoun to appear before the Senate subcommittee after another whistleblower, a Boeing quality engineer, claimed that manufacturing mistakes were raising safety risks on two of the biggest Boeing planes, the 787 Dreamliner and the 777. He said the company needed to explain why the public should be confident about Boeing’s work. 136
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Boeing pushed back against the whistleblower’s claims, saying that extensive testing and inspections showed none of the problems that the engineer had predicted. The Justice Department determined last month that Boeing violated a 2021 settlement that shielded the company from prosecution for fraud for allegedly misleading regulators who approved the 737 Max. A top department official said Boeing failed to make changes to detect and prevent future violations of anti-fraud laws. Prosecutors have until July 7 to decide what to do next. Blumenthal said there is “mounting evidence” that the company should be prosecuted. Families of the victims of the Max crashes have pushed the Justice Department repeatedly to charge the company and individual executives. They want a federal judge in Texas to throw out the 2021 deferred-prosecution agreement or DPA — essentially a plea deal — that allowed Boeing to avoid being tried for fraud in connection with the Max. “They had gotten away with murder because they had that DPA and they had three years to progress ... to improve their safety process, and actually they did nothing,” Catherine Berthet, whose daughter Camille died in the second crash, said outside the Capitol. “Now they have to be made accountable.” 139


FISKER FILES FOR BANKRUPTCY PROTECTION, THE SECOND ELECTRIC VEHICLE MAKER TO DO SO IN THE PAST YEAR 142
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Electric vehicle maker Fisker filed for Chapter 11 bankruptcy protection, the second electric startup to do so in the last year as even industry leaders struggle to lure more buyers beyond the early adapters of the technology. Fisker Group Inc. said in a filing with the U.S. Bankruptcy Court in Delaware that its estimated assets are between $500 million and $1 billion. It estimated liabilities are between $100 million and $500 million, with between 200 and 999 creditors. “Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” the company said in a prepared statement this week. “After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.” The 7-year-old electric car company was founded by designer Henrik Fisker, who has been its chairman and CEO. He designed the company’s 2022 Ocean all electric SUV as well as the luxury plug-in hybrid Karma that was launched in 2011. Fisker is also known for leading the development of the BMW Z8 sports car. Fisker, based in Manhattan Beach, California, and other startups like Lordstown Motors Corp., sought to take on industry leaders like Tesla, and big automakers in Detroit, which have entered the market aggressively. However, EV sales have slowed as manufacturers have attempted to push electric vehicles into the mainstream. Those sales have been curbed both by a lack of infrastructure, as well as rising inflation that have made taking on car loans more expensive. 145
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Electric vehicles grew only 3.3% to nearly 270,000 during the first three months of this year, far below the 47% growth that fueled record sales and a 7.6% market share last year, according to J.D. Power. The slowdown, led by Tesla, confirms automakers’ fears that they moved too quickly to pursue EV buyers. The EV share of total U.S. sales fell to 7.15% in the first quarter. That has led to huge price cuts and job cuts at leading companies like Tesla. Another electric startup, Rivian, said this year that it was pausing construction of its $5 billion manufacturing plant in Georgia to speed production and save money. Lordstown sought bankruptcy protection last summer, as it dealt with funding difficulties. Early this year Fisker received a warning from the New York Stock Exchange after its stock dipped below $1. The company’s shares were not immediately delisted and Fisker said at the time that it planned to remain listed on the NYSE and was looking at all available options to regain compliance with NYSE’s continued listing standards. Fisker Inc. and other U.S. subsidiaries, along with subsidiaries outside the U.S., are not currently included in the bankruptcy filing. Fisker says that it’s in advanced talks with financial stakeholders about debtor-in-possession financing and selling its assets. 147


CALIFORNIA FINES AMAZON NEARLY $6M, ALLEGING ILLEGAL WORK QUOTAS AT 2 WAREHOUSES 150
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California has fined Amazon a total of $5.9 million, alleging the e-commerce giant worked warehouse employees so hard that it put their safety at risk, officials said this week. The two citations issued in May by the California Labor Commissioner’s Office said Amazon.com Services LLC ran afoul of the state’s Warehouse Quota Law at facilities in Riverside and San Bernardino counties, east of Los Angeles. The law, which took effect in 2022, “requires warehouse employers to provide employees written notice of any quotas they must follow, including the number of tasks they need to perform per hour and any discipline that could come” from not meeting the requirements, the labor commissioner’s office said in a statement. Amazon was fined $1.2 million at a warehouse in Redlands and $4.7 million at another in nearby Moreno Valley. The company said that it disagrees with the allegations and has appealed the citations. “The truth is, we don’t have fixed quotas. At Amazon, individual performance is evaluated over a long period of time, in relation to how the entire site’s team is performing,” company spokesperson Maureen Lynch Vogel said in a statement. “Employees can — and are encouraged to — review their performance whenever they wish. They can always talk to a manager if they’re having trouble finding the information.” The citations allege that Amazon failed to provide written notice of quotas. 152
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Labor Commissioner Lilia García-Brower said Amazon engaged in “exactly the kind of system” that the quotas law was put in place to prevent. “Undisclosed quotas expose workers to increased pressure to work faster and can lead to higher injury rates and other violations by forcing workers to skip breaks,” she said in a statement. The agency began investigating in 2022 after employees at the two Southern California facilities reported that they were subject to unfair quota practices, said the Warehouse Worker Resource Center, a nonprofit that advocates for improving working conditions. Similar legislation has been enacted in Minnesota, New York, Oregon and Washington, the resource center said. In May, U.S. Sen. Edward Markey, a Democrat from Massachusetts, introduced a federal version of the warehouse worker protection act in Congress. 155
JUDGE OVERSEEING NFL ‘SUNDAY TICKET’ TRIAL VOICES FRUSTRATIONS OVER THE CASE 156
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The federal judge presiding over the class-action lawsuit filed by “Sunday Ticket” subscribers against the NFL voiced frustrations Tuesday with the way the plaintiffs’ attorneys have handled their side of the case. Before Dallas Cowboys owner Jerry Jones took the stand Tuesday for a second day of testimony, U.S. District Judge Philip Gutierrez said the premise of the case was simple — who wouldn’t see the frustration of a Seattle Seahawks fan living in Los Angeles not being able to see their favorite team without buying a subscription for all the Sunday afternoon out-of-market games. “The way you have tried this case is far from simple,” Gutierrez told attorneys representing the subscribers. “This case has turned into 25 hours of depositions and gobbledygook. ... This case has gone in a direction it shouldn’t have gone.” The class-action, which covers 2.4 million residential subscribers and 48,000 businesses who paid for the package of out-of-market games from the 2011 through 2022 seasons, claims the league broke antitrust laws by selling its package of Sunday games aired on CBS and Fox at an inflated price. The subscribers also say the league restricted competition by offering “Sunday Ticket” only on a satellite provider. The NFL maintains it has the right to sell “Sunday Ticket” under its antitrust exemption for broadcasting. The plaintiffs say that only covers over-the-air broadcasts and not pay TV. If the NFL is found liable, a jury could award $7 billion in damages, but that number could balloon to $21 billion because antitrust cases can triple damages. 159
Tuesday was not the first time Gutierrez has expressed frustration with the plaintiffs’ side. On Monday, he admonished their attorneys for repeatedly describing past testimony, which he considered a waste of time. Before Jones resumed his testimony, Gutierrez expressed doubts about plaintiffs’ attorneys citing Jerry Jones’ lawsuit against the NFL in 1995, which challenged the league’s licensing and sponsorship procedures. “I don’t know what you are doing, but marketing is not media,” Gutierrez said. Later in his testimony, Jones said he sued the NFL because the league sued him. Both sides eventually settled out of court. Jones’ filing against the NFL in 1994 said he supported the league’s model for negotiating television contracts and the revenue-sharing agreements in place. When asked Tuesday if teams should be able to sell their out-of-market television rights, Jones said no because “it would undermine the free TV model we have now.” Retired CBS Sports chairman Sean McManus also testified, reiterating during his testimony that he was a not fan of “Sunday Ticket” or the NFL’s Red Zone channel because he believes it infringes on the exclusivity CBS has in local markets. CBS and Fox both requested in negotiations that “Sunday Ticket” be sold as a premium package. DirecTV, and not the NFL, set the prices during the class-action period. The league has language in television contracts with CBS and Fox that the “resale packages (Sunday Ticket) are to be marketed as premium 160
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products for avid league fans that satisfy complementary demand to the offering of inmarket games.” There is additional language that prohibits the selling of individual games on a pay-per-view basis. The NFL received a rights fee from DirecTV for the package from 1994 through 2022. Google’s YouTube TV acquired “Sunday Ticket” rights for seven seasons, beginning last year. Jamie Dyckes, a DirecTV marketing official, said during a deposition that MLB, the NBA and the NHL had a suggested retail price for their out-of-market packages and that there was revenue sharing between the leagues and the carriers, since their packages were distributed on multiple platforms. Testimony will continue, with closing statements scheduled early next week. Gutierrez said he would consider invoking a rule where the court can find that a jury does not have sufficient evidence to rule for a party in a case. “I’m struggling with the plaintiffs’ case,” he said. 163
The Real Housewives of New Jersey 164
GIFTS & RECEIPTS THE REAL HOUSEWIVES OF NEW JERSEY MILK DUDS, A RING, AND A BABY TEEN MOM: THE NEXT CHAPTER REUNION, PT. 2 SUMMER HOUSE THE HEIRS OF THE DRAGON HOUSE OF THE DRAGON MOST ELIGIBLE SUPERMAN MY ADVENTURES WITH SUPERMAN ENTER THE CIRCLE ALONE THE MAGICAL RED JEWEL (AKA TYLER...) SMILING FRIENDS ALL FOR THE D TYLER PERRY’S SISTAS RUN TO YOU WHEN CALLS THE HEART ECW BIOGRAPHY: WWE LEGENDS 165
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SWAN SONG ELIN HILDERBRAND ERUPTION MICHAEL CRICHTON & JAMES PATTERSON TELL NO ONE HARLAN COBEN THE WOMAN KRISTIN HANNAH THE PERFECT MARRIAGE JENEVA ROSE CAMINO GHOSTS JOHN GRISHAM BRIDGERTON JULIA QUINN PRESUMED INNOCENT SCOTT TUROW NOT IN LOVE ALI HAZELWOOD ROMANCING MISTER BRIDGERTO JULIA QUINN 167
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A BAR SONG (TIPSY) SHABOOZEY I AM NOT OKAY JELLY ROLL I HAD SOME HELP (FEAT. MORGAN WALLEN) POST MALONE HOUDINI EMINEM ME VS. YOU TOM MACDONALD WHISKEY WHISKEY (FEAT. MORGAN...) MONEYBAGG YO PLEASE PLEASE PLEASE SABRINA CARPENTER TOO SWEET HOZIER BEAUTIFUL THINGS BENSON BOONE PINK SKIES ZACH BRYAN 169
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FATHERS & SONS LUKE COMBS THE RISE AND FALL OF A MIDWEST ... CHAPPELL ROA BRIDGERTON SEASON THREE... VARIOUS ARTISTS HARDSTONE PSYCHO DON TOLIVER THE TORTURED POETS DEPARTMENT ... TAYLOR SWIFT DOPAMINE NORMANI SPEAK NOW MONEYBAGG YO WHERE I’VE BEEN, ISN’T WHERE I’M... SHABOOZEY STEP LAY FOREVER BON JOVI 171
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AFILMFORTHEFUTURE - TRAILER COLDPLAY HOUDINI EMINEM THE STAR SPANGLED BANNER (LIVE...) CHRIS STAPLETON PRAISE (FEAT. BRANDON LAKE...) ELEVATION WORSHIP THE BOY IS MINE ARIANA GRANDE ESPRESSO SABRINA CARPENTER AIN’T NO LOVE IN OKLAHOMA (FROM...) LUKE COMBS RIGHT NOW NEWJEANS IT’S FIVE O’ CLOCK SOMEWHERE ALAN JACKSON & JIMMY BUFFETT VALERIE AMY WINEHOUSE & MARK RONSON 173
FEDERAL TRADE COMMISSION REFERS COMPLAINT ABOUT TIKTOK’S ADHERENCE TO CHILD PRIVACY LAW TO THE DOJ The Federal Trade Commission has referred a complaint against TikTok and its parent company, ByteDance, to the Department of Justice. The FTC said in a statement this week that it investigated the two companies and “uncovered reason to believe” they are “violating or are about to violate” the Children’s Online Privacy Protection Act, a federal law which requires kid-oriented apps and websites to get parental consent before collecting personal information of children under 13. 174
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The agency also cited potential violations of the FTC Act, the law that outlines its enforcement responsibilities. A person familiar with the matter told in March that the agency was looking into whether TikTok violated a prohibition against “unfair and deceptive” business practices by denying that individuals in China had access to U.S. user data. TikTok spokesperson Alex Haurek said the company has been working with the FTC for more than a year to address its concerns and was “disappointed the agency is pursuing litigation instead of continuing to work with us on a reasonable solution.” “We strongly disagree with the FTC’s allegations, many of which relate to past events and practices that are factually inaccurate or have been addressed,” Haurek said in a statement. The FTC said its investigation began in connection with a compliance review of a 2019 settlement between the agency and Musical.y, the TikTok predecessor that was acquired by ByteDance in 2017. Under the settlement, Musical.y agreed to pay $5.7 million to resolve allegations that the company violated the children’s privacy law. The agency said that while it does not typically publicize complaints that are referred to the DOJ, it determined doing so this time was “in the public interest.” Citing national security concerns, U.S. lawmakers passed a law in April that requires TikTok to be sold to an approved buyer or face a nationwide ban. TikTok and Beijing-based ByteDance have sued to overturn the law, which President Joe Biden signed. 178
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CALIFORNIA GOVERNOR WANTS TO RESTRICT SMARTPHONE USAGE IN SCHOOLS 180
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California Gov. Gavin Newsom announced this week that he wants to restrict students’ usage of smartphones during the school day, citing the mental health risks of social media. The announcement, which was first reported by Politico, comes a day after U.S. Surgeon General Vivek Murthy called on Congress to require warning labels on social media platforms and their effects on young people. Newsom said he plans to build on a law he signed in 2019 that authorized school districts to limit or ban the use of smartphones by students while at school or under the supervision of a school employee. “As the Surgeon General affirmed, social media is harming the mental health of our youth,” the Democratic governor said in a statement. “I look forward to working with the Legislature to restrict the use of smartphones during the school day. When children and teens are in school, they should be focused on their studies — not their screens.” Newsom’s office did not provide further details on the proposal. But the California School Boards Association said any regulations over student smartphone use should be left up to school districts, not the state. “We support legislation which empowers school leaders to make policy decisions at a local level that reflect their community’s concerns and what’s necessary to support their students,” spokesperson Troy Flint said. Newsom’s announcement comes amid growing debate across the country over how to address the impacts of social media and smartphone usage, particularly on young people. Some teens 183
have pledged to stay off social media to improve their mental health and to help them focus on schoolwork and extracurricular activities. In Florida, Republican Gov. Ron DeSantis earlier this year signed one of the most restrictive bans in the nation on children’s use of social media. The New York state Legislature passed a bill earlier this month that would allow parents to block their kids from getting social media posts suggested to them by the platform’s algorithm. In California, a proposal to fine social media platforms for addicting children has failed to become law in recent years. But a bill by state Sen. Nancy Skinner, a Democrat representing Berkeley, that would ban online platforms from providing addictive feeds to minors passed the state Senate in May and is set for a committee hearing in the Assembly next month. The Los Angeles Unified School District board voted for the district to develop policies banning students’ use of cell phones throughout the school day, with some exceptions. Board Member Nick Melvoin, who was a teacher and visits school campuses regularly, said he’s been “struck” by how “students are glued to their cell phones, not unlike adults.” “When I talk to teachers and students and parents and principals, I also hear the same, which is that more and more time is being spent on policing student phone use,” he said at the meeting. “There’s not coherent enforcement, and they’re looking for some support from the board and from the district.” State Sen. Henry Stern, a Democrat representing part of the Los Angeles area, introduced a bill this 184
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year to expand school districts’ authority to limit students’ social media usage at schools. Stern said he’d be willing to pull his bill, which already passed the Senate, if lawmakers and Newsom can come up with a better solution. Stern said he texted Newsom to thank him after the governor’s announcement. “It’s just too hard for every teacher, every school, or every parent to have to figure this out on their own,” Stern said. “There’s some times where government just has to step in and make some bigger rules of the road.” 186
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KEEPING CHILDREN SAFE ON SOCIAL MEDIA: WHAT PARENTS SHOULD KNOW TO PROTECT THEIR KIDS At what age should kids be on social media? Should they be on it at all? If they aren’t, will they be social pariahs? Should parents monitor their conversations? Do parental controls work? Navigating social media as a parent — not to mention a child — is not easy. Using social media platforms is still the default for most American teenagers, with the Pew Research Center reporting that 58% of teens are daily users of TikTok, including 17% who describe their TikTok use as almost constant. About half of teens use Snapchat and Instagram daily, with near-constant use at 14% and 8% for each, respectively. 188
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But parents — and even some teens themselves — are growing increasingly concerned about the effects of social media use on young people. Lawmakers have taken notice and have held multiple congressional hearings on child online safety. But even with apparent bipartisan unity, making laws and regulating companies takes time. So far, no regulation has passed. What are parents — and teens — supposed to do in the meantime? Here are some tips on staying safe, communicating and setting limits on social media — for kids as well as their parents. IS 13 THE MAGIC AGE FOR SOCIAL MEDIA? There’s already, technically, a rule that prohibits kids under 13 from using platforms that advertise to them without parental consent: The Children’s Online Privacy Protection Act that went into effect in 2000, before today’s teenagers were even born. 191
The goal was to protect kids’ online privacy by requiring websites and online services to disclose clear privacy policies and get parents’ consent before gathering personal information on their kids, among other things. To comply, social media companies have generally banned kids under 13 from signing up for their services. But times have changed, and online privacy is no longer the only concern when it comes to kids being online. There’s bullying, harassment, the risk of developing eating disorders, suicidal thoughts or worse. For years, there has been a push among parents, educators and tech experts to wait to give children phones — and access to social media — until they are older, such as the “Wait Until 8th” pledge that has parents sign a pledge not to give their kids a smartphone until the 8th grade, or about age 13 or 14. Some wait even later, like 16 or 17. But neither social media companies nor the government have done anything concrete to increase the age limit. 192
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IF THE LAW WON’T BAN KIDS, SHOULD PARENTS? “There is not necessarily a magical age,” said Christine Elgersma, a social media expert at the nonprofit Common Sense Media. But, she added, “13 is probably not the best age for kids to get on social media.” The laws currently being proposed include blanket bans on the under-13 set when it comes to social media. The problem? There’s no easy way to verify a person’s age when they sign up for apps and online services. And the apps popular with teens today were created for adults first. Companies have added some safeguards over the years, Elgersma noted, but these are piecemeal changes, not fundamental rethinks of the services. “Developers need to start building apps with kids in mind,” she said. Some tech executives, celebrities such as Jennifer Garner and parents from all walks of life have resorted to banning their kids from social media altogether. While the decision is a personal one that depends on each child and parent, some experts say this could lead to isolating kids, who could be left out of activities and discussions with friends that take place on social media or chat services. Another hurdle — kids who have never been on social media may find themselves ill-equipped to navigate the platforms when they are suddenly allowed free rein the day they turn 18. 195
TALK, TALK, TALK A more realistic and effective approach to social media, experts say, is a slow, deliberate onboarding that gives children the tools and information they need to navigate a world in which places like TikTok, Instagram and Snapchat are almost impossible to escape. “You cannot just expect that the kids will jump into the world of social media, learn how to swim on their own,” said Natalie Bazarova, a professor of communications and director of the Cornell Social Media Lab. “They need to have instruction.” Start early, earlier than you think. Elgersma suggests that parents go through their own social media feeds with their children before they are old enough to be online and have open discussions on what they see. How would your child handle a situation where a friend of a friend asks them to send a photo? Or if they see an article that makes them so angry they just want to share it right away? For older kids, Elgersma says to approach them with curiosity and interest, “asking about what their friends are doing or just not asking direct questions like, ‘What are you doing on Instagram?’ but rather, ‘Hey, I heard this influencer is really popular.’” And even if your kid rolled their eyes it could be a window.” Don’t say things like “Turn that thing off!” when your kid has been scrolling for a long time, says Jean Rogers, the director of the nonprofit Fairplay’s Screen Time Action Network. “That’s not respectful,” Rogers said. “It doesn’t respect that they have a whole life and a whole world in that device.” 196
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Instead, Rogers suggests asking them questions about what they do on their phone, and see what your child is willing to share. Kids are also likely to respond to parents and educators “pulling back the curtains” on social media and the sometimes insidious tools companies use to keep people online and engaged, Elgersma said. Watch a documentary like “The Social Dilemma” that explores algorithms, dark patterns and dopamine feedback cycles of social media. Or read up with them how Facebook and TikTok make money. “Kids love to be in the know about these things, and it will give them a sense of power,” she said. 199
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SETTING LIMITS Rogers says most parents have success with taking their kids’ phones overnight to limit their scrolling. Occasionally kids might try to sneak the phone back, but it’s a strategy that tends to work because kids need a break from the screen. “They need to an excuse with their peers to not be on their phone at night,” Rogers said. “They can blame their parents.” Parents may need their own limits on phone use. Rogers said it’s helpful to explain what you are doing when you do have a phone in hand around your child so they understand you are not aimlessly scrolling through sites like Instagram. Tell your child that you’re checking work email, looking up a recipe for dinner or paying a bill so they understand you’re not on there just for fun. Then tell them when you plan to put the phone down. 203
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WHAT ABOUT PARENTAL CONTROLS? Social media platforms that cater to children have added an ever-growing array of parental controls as they face increasing scrutiny over child safety. For instance, Meta unveiled parental supervision tools last year that lets parents set time limits, see who their kid follows or is followed by, and allows them to track how much time the minor spends on Instagram. It does not let parents see message content. But as with similar tools on other platforms such as TikTok, the feature is optional, and both kids and parents have to agree to use it. In order to nudge kids toward agreeing to set up the controls, Instagram sends a notice to teens after they block someone, encouraging them to let their parents “supervise” their account. The idea is to grab kids’ attention when they might be more open to parental guidance. By making the feature optional, Meta says it is trying to “balance teen safety and autonomy” as well as prompt conversations between parents and their children. 205
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Such features can be useful for families in which parents are already involved in their child’s online life and activities. Experts say that’s not the reality for many people. U.S. Surgeon General Vivek Murthy said last year it’s unfair to expect parents to manage what their children do with rapidly evolving technology that “fundamentally changes how their kids think about themselves, how they build friendships, how they experience the world — and technology, by the way, that prior generations never had to manage.” Putting all of that on the shoulders of parents, he said, “is just simply not fair.” 207