Headlines in Tech News of the week
Nvidia and AMD ordered to stop exporting cutting edge machine learning chips to China
…the news broke as I was issuing last week’s digest, so it’s a week old now, but there has been some further developments and rumours…
US government has imposed a new license requirement, effective immediately, for any future export to China (including Hong Kong) and Russia of the companies’ cutting edge AI chips to China. In particular, what is being banned is electronic design automation software which are needed to design high-end chips. System designed to integrate those are also affected. Chinese companies affected are said to be mainly cloud service providers, internet and AI companies.
The US government says the new license requirement will need to address the risk that the covered products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China and Russia. This means Nvidia and AMD stand lose if they cannot fulfil their contract with their Chinese customers. The government has since given Nvidia the green light on developing one of its AI chips in China, and to continue exporting AI chips from its Hong Kong facility to 2023 [but this would seem to defeat the purpose of the export ban].
US is rumoured to step up the restrictions on Chinese companies by limiting how Chinese internet companies can collect data on U.S. citizens and set out the technologies that cannot be exported to China.
Learning point from this is that, businesses will be in the future required to think about possible regulatory pressures in advance. It seems a bit unfair for the regulation to come down on the chipmakers so suddenly. It may be wise if contracts could address what happens if there are sudden tightening of regulations which means that the promised supply cannot be fulfilled through no fault of the supplier – this will all depend on the relative bargaining position of the parties.
It’s a tricky one because we just don’t know where the line lies. If not cutting edge machine learning chips, what about not-so cutting edge machine learning chips? What about other products that could possibly be used for military use, but has plenty of civil uses?
Artificial Intelligence/ Algorithms
Promptbase – a marketplace for AI art created by text to image AI engines such as Dall-E
…now everyone can make and sell art. But what stops people from trying to get something similar using Dall-E or other, text to image AI? There is still skill required in editing the AI generated art though, and complicated art will be difficult to replicate even where it is generated by AI, at least for the moment.
Interesting copyright questions are likely to arise. What is the copyright status of all the data which was scraped to make the AI engine the first place? What does that mean for the generated AI art?
Dall-E says users get full usage rights to commercialize the images they create with DALL·E, including the right to reprint, sell, and merchandise – but Open AI claims to own the original image. Other text to image generating AI have their own terms; including a stake in the proceeds should the art be onwardly traded.
Where the terms as to ownership are unclear, the outcome may depend on the law of copyright, which may differ depending on the jurisdiction. In the UK, it is arguable that AI generated by copyright is protectable as a computer-generated work under s.9(3) Copyright, Designs and Patents Act 1988 (CDPA), in which case the author/owner will be “the person by whom the arrangements necessary for the creation of the work are undertaken” [there may be argument over who actually undertook the arrangements necessary]. The EU position may be different, as case law indicates that human creation is required to attract copyright (eg. Case C-145/10 (Painer), Case C-683/17 (Cofemel)). In the US, the argument is likely to centre around the scope of fair use – which is a legal doctrine that promotes freedom of expression by permitting the unlicensed use of copyright-protected works in certain circumstances.
Worth checking out is Dall-E’s new feature, Outpainting “which helps users extend their creativity by continuing an image beyond its original borders”. Check out the Girl with a Pearl Earring in her surroundings, here.
US Department of Defence opens a marketplace Tradewind – to find, fund, and accelerate the adoption and transition of AI technologies to solve DoD challenges and problems
… The marketplace is led by the Pentagon’s Chief Digital and Artificial Intelligence Office (CDAO)
Meta uses AI to decode speech from brain activity
…no need for transplants, and gives those with brain injury/ stroke victims so severe that they cannot type to communicate, much hope. Facebook AI Research Labs (FAIR) scientists have been able to show “from three seconds of brain activity… [the ability to] decode the corresponding speech segments with up to 73 percent top-10 accuracy from a vocabulary of 793 words, i.e., a large portion of the words we typically use on a day-to-day basis.”
Reddit undertakes AI acquisitions for Ad-targeting purposes in amid data use restrictions
…Last year Apple gave iPhone users the option to stop third party apps tracking what users do with their mobiles phones (such as Apps and Websites). Tracking enabled those third parties (for example, supermarkets, car makers, fashion brands – you name it) gather data about users and understand their likes and dislikes. That was then used to target ads – car makers could spend cash on advertising on eg. Facebook only on users that liked cars, Gucci might advertise on users that had more expensive buying habits, or bought other luxury brand items, for example. The users took up the option to block this commercial surveillance with zeal such that brands could no longer ad target effectively, and advertising space providers such as Facebook and Reddit experienced a cratering in its revenue. Added to that are ever tighter regulatory restrictions on the horizon to ensure users’ data are not taken and exploited without regard for their rights, privacy or security.
Reddit is now on a shopping spree to buy AI technology that enable it to glean the conversations on its platform to better understand trends – so they can better ad-target, and so reap higher income from advertisers now that data is less available. It can also use the technology to content moderate, provide a better service to users by enabling them to get to the most relevant content (without having to develop super indexing algorithms like Google), and perform on point automated recommendations (like TikTok). It has so far purchased:
- Spiketrap – a company that uses artificial intelligence to contextualize audience understanding
- MeaningCloud – a natural language processing platform that enables developers to build apps that can extract meaning from written content.
- Spell – platform for running machine learning experiments
Who is liable? Truck drivers subcontracting for Amazon blame Amazon’s AI for poor working conditions in Japan
…the unionised truckers say the AI diverts them to overly narrow roads [lots of narrow roads in Japan], and doesn’t take into account driving conditions [such as weather]. This increases their working load. The truckers are subcontractors and technically work for a third party logistics company so Amazon says it is not legally responsible. The union for the truckers say they get the orders from Amazon through the Amazon App, so they work for Amazon, who should be responsible. Employment lawyers, take note – this issue may arise in other jurisdictions.
BigTech/ Data / Platforms
Content moderation
Cloudflare, the internet infrastructure company decides to remove support for Kiwi Farms – a notorious hate speech site
…Cloudflare protects websites from DDOS attacks (bombarding of traffic on target websites – think website crashes when in demand tickets are released). The threats on the site escalated enough in the last 48 hours that, in spite of proactively working with law enforcement, it became enough of an imminent emergency we could no longer wait for them to act – said Cloudflare CEO. The site was particularly known for harassing and doxxing (publishing malicious private info) trans people.
Competition
Apple caves and settles with App Developer Flicktype
…the complaint concerned an activity known as Sherlocking. This refers to a time when Apple sunk a popular App priced at $29 called Watson by later releasing its own finder app with capability of carrying out a search on the web and files on the device – called [aptly named?] Sherlock. Since then Sherlocking came to describe the move where a popular app becomes redundant because it becomes integrated within the operating system. The idea is not dissimilar to Amazon using non-public data of sellers on its platform to inform itself of which best-selling products it should focus on selling on the same platform – the EU Commission is currently investigating whether such practice is anticompetitive.
Flicktype was an app offering keyboard for the Apple watch. The suit says that Apple was interested in buying the company, but then the App was told that it needed to be removed because the app is a keyboard for the Apple Watch. Apple then launched its own swipe keyboard app alongside the new Apple Watch Series 7. Reportedly, there are a number of instances of Sherlocking by Apple. As pointed out by FOSS patents, the better course may be to see if the functionality of the apps can be patented.
The settlement with Flicktype is significant because there are rumours that the US Department of Justice is preparing an antitrust suit against Apple for “abused its market power to stifle smaller tech companies, including app developers and competing hardware makers.”
This again is perhaps an example of BigTechs making moves before antitrust suit is filed against them. Recently, Apple has enabled users to delete wallets from iPhones, and will allow third party web browsers to work with Apple Pay – following a complaint made to the EU Commission. Last year, Apple enabled a Report button enabling users to report scammy apps – which may have been due to the up-coming EU’s Digital Services Act which oblige “very large platforms” to analyse systemic risks they create and to carry out risk reduction analysis to reduce risks associated with, among other things, dissemination of illegal content.
Platforms
Apple not liable for making available phishing app Toast Plus on app store says Judge (Northern District of California)
…interestingly one of the class action plaintiffs was not a resident in the US, but Japan (who lost out big time by the scam). Plaintiffs downloaded a scam e-wallet app which stole cryptocurrencies. Plaintiffs believed that Toast Plus was a version of Toast Wallet, a well known cryptocurrency wallet, as the names were similar and the logo used for the application in the App Store was the same or nearly identical.
The plaintiffs point out that Apple is representing in its campaign (eg. against antitrust complaints concerning App Store monopoly – ie: not allowing third party apps on the iOS ecosystem) that App Store is “a safe and trusted place” and that “that the apps we offer are held to the highest standards for privacy, security, and content”, yet it had listed Toast Plus, a fraudulent app, on its app store.
That was not enough to make Apple liable, the Court said. It was immune from liability arising from content created by third parties under § 230(c)(1) of the Communications Decency Act (“CDA”). It was a publisher in that it reproduced a work intended for public consumption, the third party content for which Apple did not have any hand in developing. Claims under consumer protection laws failed, and Apple was able to rely on its terms limiting liability.
Amazon to deliver prescription pills in Japan by partnering up with pharmacies
…Amazon has recently invested (not acquired) in iStyle, a Japanese cosmetics company, with a rich source of online discussions. In Japan, a relatively wide variety of cosmetics are sold in pharmacies. Perhaps there is some sort of synergy with that business too. Japan is a lucrative country for pharmaceutical companies as a significant portion of the population prefer originator drugs to generics. That’s another reason for expanding into Japan. Further, it may be trying simply to grow internationally. The antitrust climate in the US is pretty hot, so in order to increase revenue and perhaps access to data – which can aid business to be sharper if data is processed right – it may be expanding into other countries.
Separately, on a health related business point, Amazon was outbid to buy Signify Health, value-based care and provider enablement business in the US. CVS will be buying it for $8billion. Amazon may have lost the bid, but it may have done some collateral damage to would be rival CVS (if Amazon gets the go ahead to buy One Medical) by pushing up the acquisition price tag.
Privacy
Instagram fined €405million by Irish data regulator for not keeping children’s data safe in breach of GDPR
…Instagram explains that the breach concerns an old feature in which all users, including under 18’s default setting was not private when it is changed to a business account, as a result of which childrens’ data (eg. phone numbers, emails) were automatically disclosed. That has now been remedied. In any event, Instagram said they will appeal. #
UK has been leading the efforts to protect childrens’ data with the Children’s Code, with many countries following that lead with stringent rules obliging businesses to keep childrens’ data private. California has last week approved age-appropriate design code for certain sized businesses, which includes privacy by default settings.
Crypto/NFT
Proceeds of Actor Bill Murray’s charity NFT is stolen – Ethereum worth $185,000 …the interesting point is the use of the NFT with a real world element. Bill Murray auctioned “Beer with Bill Murray” NFT – the winner got to have a beer with the actor, the scene of which an artist painted on canvas and then converted into a digital copy.
Cyber Security
Criticism over decision of Lloyd’s of London to exclude state-sponsored cyber attacks in insurance policies
…Lloyd’s say, it is (i) akin to exclusions for acts of war and (ii) owing to the scale of potential losses it could make policies prohibitively expensive.
Critics say state backed attacks are so frequent that businesses might decide not to buy a policy. Policy prices have increased sharply in the recent year.
EVs/AVs
UK Data Protection Regulator prosecutes theft of data from Vehicle Repair Garages
…voluminous data of 100s of thousands of people relating to those involved in car accidents were stolen to obtain leads to make insurance claims. They were prosecuted under the Computer Misuse Act 1990, which carries a custodial sentence of up to two years.
Uber partners with fintech Moove in London
…London has ever burgeoning strict and expensive low emission zones. These leave EVs out of reach for most drivers who would work for Uber, who has the ambition to become a 100% electric platform in London by 2025. To drive under the UberX banner, cars must be at least a hybrid.
Nigerian fintech Moove, which has an established presence in the African and Indian regions, proposes to help with the financing to add 10,000 extra Uber cars on London’s roads to rent out to drivers on a weekly basis. Drivers need not undergo credit checks or a deposit, instead preferring to use alternative credit scoring technology which is expected to be more financially inclusive. Moove will also provide Moove Charge, an app for Uber drivers, giving them access to 6600 charge points.
A day after GM’s Cruise gets Robotaxi (no driver) licence in California, it causes an accident – leads to software recall and update in 80 Robotaxis
…not the best timing, but the accident was not fatal. The Robotaxi failed to avoid an oncoming traffic speeding in the wrong lane – 40 miles per hour in a 25-mph restricted right-turn/bus-only lane. As the Robotaxi started to make a left turn, it predicted that the oncoming traffic would turn right – and so it hard-braked. Instead, the car drove straight on and the two vehicles collided.
Query I have is what percentage of human “competent and careful” drivers [to borrow the standard the UK Government is proposing to use] would have been able to avoid it.
Metaverse / VR / AR / MR / XR
Meta enters into a “multi-year broad strategic agreement” with Qualcomm to build custom chips for Meta’s VR headsets
…think I heard that one before…. Qualcomm recently entered into a multiyear broad strategic partnership with Samsung. And what do Samsung and Meta have in common? A common competitor in the name of Apple – in the mobile (Samsung) and VR (Meta) space. Apple itself has locked horns with Qualcomm, unhappy with Qualcomm’s pricing and pricing structure for its chips and intellectual property, leading to a 2019 settlement following a global battle that ended with Intel being pushed out of the chip-making market [though Intel is now entering back into it]. The leftover skirmishes of that battle ended about two months ago. Apple itself is doing all it can to reduce its dependency on Qualcomm, by designing own chips [it’s forthcoming anticipated VR headset to be based on in-house designed chip, the M2] and getting the top manufacturer TSMC to make them. Qualcomm/Apple licence ends in 2025.
Product and engineering teams will deepen technical collaboration to develop next generation Snapdragon XR chipsets. Meta’s current VR headset, the Quest 2 uses Snapdragon XR2. Notable points:
- Chip will be optimised for Meta’s system specifications, but will not be exclusive to Meta.
- Note Qualcomm has a partnership with ByteDance [TikTok parent] who owns VR headset company Pico, and also working with Microsoft on custom chips for next-gen AR glasses.
- Meta is trying to custom silicon of its own for its VR/AR headset. Mark Zuckerberg is reported to have said “Unlike mobile phones, building VR brings novel multidimensional challenges in spatial computing, cost and form factor”
- The agreement covers only VR devices.
Note
AR (where information is overlaid over the physical world) is much more difficult than VR in terms of technology, which is why VR is being launched first. Companies will then probably move onto MR (mixed reality) – where there is an out-ward facing video camera so the real world can be blended with the virtual (apparently called “pass through” – so it’s not really AR) – you do not see the real world direct, but the processed videoed images.
Lenovo to sell platform neutral AR glasses (which looks like ordinary sunglasses)
… Lenovo Glasses T1 will be usable with Windows, macOS, Android, or iOS devices.
Semiconductors
India moves in on the chipmaking act!
…We’ve seen the US Chips and Science Act and the EU Chips Act with $52billion and €40billion worth of subsidies respectively. Now India is offering $10billion worth of incentive to lure chip makers to manufacture there too.
As the FT points out, as a result of US blockade of exportation of cutting edge chips into China, China is also likely to provide some sort of semiconductor package.
And so is Micron in the US
…it will be the first memory semiconductor manufacturing plant by a US company over the last 20 years. The company says that the support provided by the US Chips and Science Act enabled to embark on the venture. The chips will be made for multiple markets including data centres and autos, where Micron chips are currently being widely used.
Supply Chain
Amazon to provide low-cost long-term storage that gives sellers the option to store their inventory in Amazon distribution centers
…when it comes to logistics, Amazon is king. Here, what Amazon is really offering, is supply chain resilience.
When supply chain disruptions erupted during the pandemic, Amazon was the business that was capable of routing its cargo, using smaller vessels that can pass narrower channels and better able to utilise smaller ports, avoiding the larger ports that were clogging up. It has own cargo ships and containers, has control over every node across their supply chain, have the predictive logistics capability to manage and prioritise goods, and make distribution as seamless as possible, as explained by CNBC.
The new service, “Amazon Warehousing & Distribution (AWD)” gives third parties the opportunity to rely on Amazon’s logistical prowess to buy the supply chain resilience businesses desperately need. Amazon will also have the opportunity to collect more data in the process, although the freedom to use such data as it sees fit, might be restricted by upcoming regulatory measures. Owing to supply chain issues, some businesses are expected to order more than they need so that they can fulfil their contracts come what may. Some companies – like Peloton have found it extremely difficult to predict future demands leading to excess inventory (so much so that it had to do a deal with Amazon to sell them on its platform). Whatever the case, any storage for stock needs to be available and accessible and devoid of further supply chain issues, such as lack of truck drivers. In Amazon’s world, where there’s pain there is gain – a true mark of success.
Telecoms
Senators urge the Federal Communications Commission to “proceed with an evidence-based rule making” when deciding on whether to allow 5G wireless service to the 12 GHz (1 2.2-12.7) Band
…the concern is interference with incumbent satellite services that serve rural areas. The digital divide can only be closed by using the spectrum efficiently and wisely, senators said.
T-Mobile wins 90% of the licences in the 2.5GHz Spectrum from the Federal Communication Commission auction
…the interesting features are:
- most of the available spectrum in the 2.5 GHz band are located in rural areas
- Mid-band spectrum such as 2.5 GHz can boost capacity and speeds over relatively long distances, heavily used in 5G – T-Mobile is actively utilising the 2.5GHz band (cf 3.7 GHz to 3.98 GHz range, which is also in the mid-band range, is used by Verizon and AT&T which had issues on deployment owing to potential interference with airplane navigation systems)
With remote working, there may be scope for development in rural areas, and less competition. T-Mobile’s plan may be to get into rural areas quick and integrate into the rural network, and essentially be the best at providing good network across the country.
One more thing…
Surgeon successfully completes vasectomy despite power outage with the help of Rivian
…the patient couldn’t reschedule, so he consented to have the surgery powered by the EV. Thankfully the outcome was positive. On a bit more serious note, EVs are essentially stored energy on wheels – it can potentially do a lot more things eg. rescuing people in remote areas.