Iphone

FBI Extracts Suspect's Deleted Signal Messages Saved In iPhone Notification Data (404media.co) 43

An anonymous reader quotes a report from 404 Media: The FBI was able to forensically extract copies of incoming Signal messages from a defendant's iPhone, even after the app was deleted, because copies of the content were saved in the device's push notification database, multiple people present for FBI testimony in a recent trial told 404 Media. The case involved a group of people setting off fireworks and vandalizing property at the ICE Prairieland Detention Facility in Alvarado, Texas in July, and one shooting a police officer in the neck. The news shows how forensic extraction -- when someone has physical access to a device and is able to run specialized software on it -- can yield sensitive data derived from secure messaging apps in unexpected places. Signal already has a setting that blocks message content from displaying in push notifications; the case highlights why such a feature might be important for some users to turn on.

"We learned that specifically on iPhones, if one's settings in the Signal app allow for message notifications and previews to show up on the lock screen, [then] the iPhone will internally store those notifications/message previews in the internal memory of the device," a supporter of the defendants who was taking notes during the trial told 404 Media. [...] During one day of the related trial, FBI Special Agent Clark Wiethorn testified about some of the collected evidence. A summary of Exhibit 158 published on a group of supporters' website says, "Messages were recovered from Sharp's phone through Apple's internal notification storage -- Signal had been removed, but incoming notifications were preserved in internal memory. Only incoming messages were captured (no outgoing)."

404 Media spoke to one of the supporters who was taking notes during the trial, and to Harmony Schuerman, an attorney representing defendant Elizabeth Soto. Schuerman shared notes she took on Exhibit 158. "They were able to capture these chats bc [because] of the way she had notifications set up on her phone -- anytime a notification pops up on the lock screen, Apple stores it in the internal memory of the device," those notes read. The supporter added, "I was in the courtroom on the last day of the state's case when they had FBI Special Agent Clark testifying about some Signal messages. One set came from Lynette Sharp's phone (one of the cooperating witnesses), but the interesting detailed messages shown in court were messages that had been set to disappear and had in fact disappeared in the Signal app."
Further reading: Apple Gave Governments Data On Thousands of Push Notifications
AI

Anthropic Announces Claude Subscribers Must Now Pay Extra to Use OpenClaw (venturebeat.com) 46

Anthropic's making a big and sudden change — and connecting its Claude AI to third-party agentic tools "is about to get a lot more expensive," writes the Verge: Beginning April 4th at 3PM ET, users will "no longer be able to use your Claude subscription limits for third-party harnesses including OpenClaw," according to an email sent to users on Friday evening. Instead, if users want to use OpenClaw with Claude, they'll have to use a "pay-as-you-go option" that will be billed separate from their Claude subscription.
Anthropic's announcement added these extra usage bundles are "now available at a discount." Users can also try Anthropic's API, notes VentureBeat, "which charges for every token of usage rather than allowing for open-ended usage up to certain limits, as the Pro and Max plans have allowed so far. " The technical reality, according to Anthropic, is that its first-party tools like Claude Code, its AI vibe coding harness, and Claude Cowork, its business app interfacing and control tool, are built to maximize "prompt cache hit rates" — reusing previously processed text to save on compute. Third-party harnesses like OpenClaw often bypass these efficiencies... [Claude Code creator Boris Cherny explained on X that "I did put up a few PRs to improve prompt cache hit rate for OpenClaw in particular, which should help for folks using it with Claude via API/overages."] Growth marketer Aakash Gupta observed on X that the "all-you-can-eat buffet just closed," noting that a single OpenClaw agent running for one day could burn $1,000 to $5,000 in API costs. "Anthropic was eating that difference on every user who routed through a third-party harness," Gupta wrote. "That's the pace of a company watching its margin evaporate in real time."

However, Peter Steinberger, the creator of OpenClaw who was recently hired by OpenAI, took a more skeptical view of the "capacity" argument."Funny how timings match up," Steinberger posted on X. "First they copy some popular features into their closed harness, then they lock out open source." Indeed, Anthropic recently added some of the same capabilities that helped OpenClaw catch-on — such as the ability to message agents through external services like Discord and Telegram — to Claude Code...

User @ashen_one, founder of Telaga Charity, voiced a concern likely shared by other small-scale builders: "If I switch both [OpenClaw instances] to an API key or the extra usage you're recommending here, it's going to be far too expensive to make it worth using. I'll probably have to switch over to a different model at this point."

"I know it sucks," Cherny replied. "Fundamentally engineering is about tradeoffs, and one of the things we do to serve a lot of customers is optimize the way subscriptions work to serve as many people as possible with the best mode..." OpenAI appears to be positioning itself as a more "harness-friendly" alternative, potentially using this moment as a customer acquisition channel for disgruntled Claude power users.

By restricting subscription limits to their own "closed harness," Anthropic is asserting control over the UI/UX layer. This allows them to collect telemetry and manage rate limits more granularly, but it risks alienating the power-user community that built the "agentic" ecosystem in the first place. Anthropic's decision is a cold calculation of margins versus growth. As Cherny noted, "Capacity is a resource we manage thoughtfully." In the 2026 AI landscape, the era of subsidized, unlimited compute for third-party automation is over. For the average user on Claude.ai, the experience remains unchanged; for the power users running autonomous offices, the bell has tolled.

AI

OpenAI Has No Moat, No Tech Edge, No Lock-in and No Real Plan, Analyst Warns 53

OpenAI faces four fundamental strategic problems that no amount of fundraising or capex announcements can paper over, according to analyst Benedict Evans: it has no unique technology, its enormous user base is shallow and fragile, incumbents like Google and Meta are leveraging superior distribution to close the gap, and its product roadmap is dictated by whatever the research labs happen to discover rather than by deliberate product strategy.

The company claims 800-900 million weekly active users, but 80% of them sent fewer than 1,000 messages across all of 2025, averaging fewer than three prompts a day, and only 5% pay. OpenAI has acknowledged what it calls a "capability gap" between what models can do and what people use them for -- a framing Evans reads as a polite way to avoid admitting the absence of product-market fit. Gemini and Meta AI are meanwhile gaining share rapidly because the products look nearly indistinguishable to typical users, and Google and Meta already have the distribution to push them. Evans compares ChatGPT to Netscape -- an early leader in a category where the products were hard to tell apart, overtaken by a competitor that used distribution as a crowbar.

On capex, Evans argues that Altman's ambitions -- claiming $1.4 trillion and 30 gigawatts of future compute -- amount to an attempt to will OpenAI into a seat at a table where annual infrastructure spending may need to reach hundreds of billions. But a seat at the table is not leverage over it; he compares this to TSMC, which holds a de facto chip monopoly yet captures little value further up the stack.

OpenAI's own strategy diagrams from late last year laid out a full-stack platform vision -- chips, models, developer tools, consumer products -- each layer reinforcing the others. Evans argues this borrows the language of Windows and iOS without possessing any of the underlying dynamics: no network effect, no lock-in preventing developers from calling a different model's API, and no reason customers would know or care which foundation model powers the product they are using.
Electronic Frontier Foundation

Congress Wants To Hand Your Parenting To Big Tech 53

An anonymous reader quotes a report from the Electronic Frontier Foundation (EFF): Lawmakers in Washington are once again focusing on kids, screens, and mental health. But according to Congress, Big Tech is somehow both the problem and the solution. The Senate Commerce Committee held a hearing [Friday] on "examining the effect of technology on America's youth." Witnesses warned about "addictive" online content, mental health, and kids spending too much time buried in screen. At the center of the debate is a bill from Sens. Ted Cruz (R-TX) and Brian Schatz (D-HI) called the Kids Off Social Media Act (KOSMA), which they say will protect children and "empower parents."

That's a reasonable goal, especially at a time when many parents feel overwhelmed and nervous about how much time their kids spend on screens. But while the bill's press release contains soothing language, KOSMA doesn't actually give parents more control. Instead of respecting how most parents guide their kids towards healthy and educational content, KOSMA hands the control panel to Big Tech. That's right -- this bill would take power away from parents, and hand it over to the companies that lawmakers say are the problem. [...] This bill doesn't just set an age rule. It creates a legal duty for platforms to police families. Section 103(b) of the bill is blunt: if a platform knows a user is under 13, it "shall terminate any existing account or profile" belonging to that user. And "knows" doesn't just mean someone admits their age. The bill defines knowledge to include what is "fairly implied on the basis of objective circumstances" -- in other words, what a reasonable person would conclude from how the account is being used. The reality of how services would comply with KOSMA is clear: rather than risk liability for how they should have known a user was under 13, they will require all users to prove their age to ensure that they block anyone under 13.

KOSMA contains no exceptions for parental consent, for family accounts, or for educational or supervised use. The vast majority of people policed by this bill won't be kids sneaking around -- it will be minors who are following their parents' guidance, and the parents themselves. Imagine a child using their parent's YouTube account to watch science videos about how a volcano works. If they were to leave a comment saying, "Cool video -- I'll show this to my 6th grade teacher!" and YouTube becomes aware of the comment, the platform now has clear signals that a child is using that account. It doesn't matter whether the parent gave permission. Under KOSMA, the company is legally required to act. To avoid violating KOSMA, it would likely lock, suspend, or terminate the account, or demand proof it belongs to an adult. That proof would likely mean asking for a scan of a government ID, biometric data, or some other form of intrusive verification, all to keep what is essentially a "family" account from being shut down.

Violations of KOSMA are enforced by the FTC and state attorneys general. That's more than enough legal risk to make platforms err on the side of cutting people off. Platforms have no way to remove "just the kid" from a shared account. Their tools are blunt: freeze it, verify it, or delete it. Which means that even when a parent has explicitly approved and supervised their child's use, KOSMA forces Big Tech to override that family decision. [...] These companies don't know your family or your rules. They only know what their algorithms infer. Under KOSMA, those inferences carry the force of law. Rather than parents or teachers, decisions about who can be online, and for what purpose, will be made by corporate compliance teams and automated detection systems.
Verizon

Verizon To Stop Automatic Unlocking of Phones as FCC Ends 60-Day Unlock Rule (arstechnica.com) 20

The Federal Communications Commission is letting Verizon lock phones to its network for longer periods, eliminating a requirement to unlock handsets 60 days after they are activated on its network. From a report: The change will make it harder for people to switch from Verizon to other carriers. The FCC today granted Verizon's petition for a waiver of the 60-day unlocking requirement. While the waiver is in effect, Verizon only has to comply with the CTIA trade group's voluntary unlocking policy.

The CTIA policy calls for unlocking prepaid mobile devices one year after activation, while devices on postpaid plans can be unlocked after a contract, device financing plan, or early termination fee is paid. Unlocking a phone allows it to be used on another carrier's network. While Verizon was previously required to unlock phones automatically after 60 days, the CTIA code says carriers only have to unlock phones "upon request" from consumers. The FCC said the Verizon waiver will remain in effect until the agency "decides on an appropriate industry-wide approach for the unlocking of handsets."

Technology

CES Worst In Show Awards Call Out the Tech Making Things Worse (ifixit.com) 41

Longtime Slashdot reader chicksdaddy writes: CES, the Consumer Electronics Show, isn't just about shiny new gadgets. As AP reports, this year brought back the fifth annual Worst in Show anti-awards, calling out the most harmful, wasteful, invasive, and unfixable tech at the Las Vegas show. The coalition behind the awards -- including Repair.org, iFixit, EFF, PIRG, Secure Repairs, and others -- put the spotlight on products that miss the point of innovation and make life worse for users.

2026 Worst in Show winners include:

Overall (and Repairability): Samsung's AI-packed Family Hub Fridge -- over-engineered, hard to fix, and trying to do everything but keep food cold.
Privacy: Amazon Ring AI -- expanding surveillance with features like facial recognition and mobile towers.
Security: Merach UltraTread treadmill -- an AI fitness coach that also hoovers up sensitive data with weak security guarantees, including a privacy policy that declares the company "cannot guarantee the security of your personal information" (!!).
Environmental Impact: Lollipop Star -- a single-use, music-playing electronic lollipop that epitomizes needless e-waste.
Enshittification: Bosch eBike Flow App -- pushing lock-in and digital restrictions that make gear worse over time.
"Who Asked For This?": Bosch Personal AI Barista -- a voice-assistant coffee maker that nobody really wanted.
People's Choice: Lepro Ami AI Companion -- an overhyped "soulmate" cam that creeps more than it comforts.

The message? Not all tech is progress. Some products add needless complexity, threaten privacy, or throw sustainability out the window -- and the industry's watchdogs are calling them out.

Windows

How Windows 10 Earned Its Good Reputation While Planting the Seeds of Windows 11's Problems (arstechnica.com) 39

Windows 10's formal end-of-support arrived in October, and while the operating system is generally remembered as one of the "good" versions of Windows -- the most widely used since XP -- many of the annoyances people complain about in Windows 11 actually started during the Windows 10 era, ArsTechnica writes.

Windows 10 earned its positive reputation primarily by not being Windows 8. It restored a version of the traditional Start menu, rolled out as a free upgrade to Windows 7 and 8 users, and ran on virtually all the same hardware as those older versions. Microsoft introduced the Windows Subsystem for Linux during this period and eventually rebuilt Edge on Chromium. The company seemed more willing to meet users where they were rather than forcing them to change their behavior.

But Windows 10 also began collecting more information about how users interacted with the operating system, cluttered the lock screen with advertisements and news articles, and added third-party app icons to the Start menu without user consent. The mandatory Microsoft Account sign-in requirement -- one of Windows 11's most frequently complained-about features -- was a Windows 10 innovation, easier to circumvent at the time but clearly a step down the road Windows 11 is currently traveling.

To be sure, Windows 11 has made things worse by stacking new irritants on top of old ones. The Microsoft Account requirement expanded to both Home and Pro editions, the SCOOBE screen now regularly nags users to "finish setting up" years-old installations and Microsoft's Copilot push changed the default PC keyboard layout for the first time in 30 years.
Open Source

Up Next for Arduino After Qualcomm Acquisition: High-Performance Computing (eetimes.com) 26

Even after its acquisition by Qualcomm, the EFF believes Arduino "isn't imposing any new bans on tinkering with or reverse engineering Arduino boards," (according to Mitch Stoltz, EFF director for competition and IP litigation). While Adafruit's managing editor Phillip Torrone had claimed to 36,000+ followers on LinkedIn that Arduino users were now "explicitly forbidden from reverse engineering," Arduino corrected him in a blog post, noting that clause in their Terms & Conditions was only for Arduino's Software-as-a-Service cloud applications. "Anything that was open, stays open."

And this week EE Times spoke to Guneet Bedi, SVP of Arduino, "who was unequivocal in saying that Arduino's governance structure had remained intact even after the acquisition." "As a business unit within Qualcomm, Arduino continues to make independent decisions on its product portfolio, with no direction imposed on where it should or should not go," Bedi said. "Everything that Arduino builds will remain open and openly available to developers, with design engineers, students and makers continuing to be the primary focus.... Developers who had mastered basic embedded workflows were now asking how to run large language models at the edge and work with artificial intelligence for vision and voice, with an open source mindset," he said. According to Bedi, this was where Qualcomm's technology became relevant. "Qualcomm's chipsets are high performance while also being very low power, which comes from their mobile and Android phone heritage. Despite being great technology, it is not easily accessible to design engineers because of cost and complexity. That made this a strong fit," he said.

The most visible outcome of this acquisition is Uno Q, which Bedi described as being comparable to a mid-tier Android phone in capability, starting at a price of $44. For Arduino, this marked a shift beyond microcontrollers without abandoning them. "At the end of the day, we have not gone away from our legacy," Bedi said. "You still have a real-time microcontroller, and you still write code the way Arduino developers are used to. What we added is compute, without forcing people to change how they work." Uno Q combines a Linux-based compute system with a real-time microcontroller from the STM32 family. "You do not need two different development environments or two different hardware platforms," Bedi added... Rather than introducing a customized operating system, Arduino chose standard Debian upstream. "We are not locking developers into anything," Bedi said. "It is standard Debian, completely open...." Pre-built models covering tasks like object detection and voice recognition run locally on the board....

While the first reference design uses Qualcomm silicon, Bedi was careful to stress that this does not define the roadmap. "There is zero dependency on Qualcomm silicon," he said. "The architecture is portable. Tomorrow, we can run this on something else." That distinction matters, particularly for developers wary of vendor lock-in following the acquisition. Uno Q does compete directly with platforms like Raspberry Pi and Nvidia Jetson, but Bedi framed the difference less in terms of raw performance and more in flexibility. "When you build on those platforms, you are locked to the board," he said. "Here, you can build a prototype, and if you like it, you can also get access to the chip and design your own hardware." With built-in storage removing the need for external components, Uno Q positions itself less as a faster board and more as a way to simplify what had become an increasingly messy development stack...

Looking a year ahead, Bedi believes developers should experience continuity rather than disruption. The familiar Arduino approach to embedded and real-time systems remains unchanged, while extending naturally into more compute-intensive applications... Taken together, Bedi's comments suggest that Arduino's post-acquisition direction is less about changing what Arduino is, and more about expanding what it can realistically be used for, without abandoning the simplicity that made it relevant in the first place.

"We want to redefine prototyping in the age of physical artificial intelligence," Bedi said...
Youtube

10M People Watched a YouTuber Shim a Lock; the Lock Company Sued Him. Bad Idea. (arstechnica.com) 57

Trevor McNally posts videos of himself opening locks. The former Marine has 7 million followers and nearly 10 million people watched him open a Proven Industries trailer hitch lock in April using a shim cut from an aluminum can. The Florida company responded by filing a federal lawsuit in May charging McNally with eight offenses. Judge Mary Scriven denied the preliminary injunction request in June and found the video was fair use.

McNally's followers then flooded the company with harassment. Proven dismissed the case in July and asked the court to seal the records. The company had initiated litigation over a video that all parties acknowledged was accurate. ArsTechnica adds: Judging from the number of times the lawsuit talks about 1) ridicule and 2) harassment, it seems like the case quickly became a personal one for Proven's owner and employees, who felt either mocked or threatened. That's understandable, but being mocked is not illegal and should never have led to a lawsuit or a copyright claim. As for online harassment, it remains a serious and unresolved issue, but launching a personal vendetta -- and on pretty flimsy legal grounds -- against McNally himself was patently unwise. (Doubly so given that McNally had a huge following and had already responded to DMCA takedowns by creating further videos on the subject; this wasn't someone who would simply be intimidated by a lawsuit.)

In the end, Proven's lawsuit likely cost the company serious time and cash -- and generated little but bad publicity.

IOS

iOS 26.1 Beta 4 Lets Users Control Liquid Glass Transparency With New Toggle (macrumors.com) 26

An anonymous reader quotes a report from MacRumors: With the fourth betas of iOS 26.1, iPadOS 26.1, and macOS 26.1, Apple has introduced a new setting that's designed to allow users to customize the look of Liquid Glass. The toggle lets users select from a clear look for Liquid Glass, or a tinted look. Clear is the current Liquid Glass design, which is more transparent and shows the background underneath buttons, bars, and menus, while tinted increases the opacity of Liquid Glass and adds more contrast.

Apple says that the new toggle was added because during the beta testing period over the summer, user feedback suggested that some people would prefer to have a more opaque option for Liquid Glass. The added setting provides additional customization in iOS 26.1, iPadOS 26.1, and macOS Tahoe 26.1. Increasing opacity and adding contrast applies to Liquid Glass throughout the operating system, including in apps and Lock Screen notifications.

Cellphones

2.5 Million American Students Now Required to Lock Their Cellphones in Magnetic Pouches (cbsnews.com) 148

In 2016 comedian Dave Chappelle made headlines by requiring concert attendees to lock their cellphones in a pouch to prevent recording.

Nine years later those pouches (made by tech startup Yondr) are required for at least 2.5 million students in America, reports CBS News, "and the company said the number could triple after the 2025 numbers are tallied in about three months... Students in 35 states, including New York, Florida, Texas, California, Massachusetts and Georgia, now contend with laws or rules limiting phones and other electronic devices in school."

For example, The Yonkers School District purchased about 11,000 pouches, according to the article, "to comply with the statewide mandate that bans phones in classrooms." The pouch, which students carry with them, is locked and unlocked using magnets affixed to the entrance of the school and outside the main office... ["Some students have reported long lines and disruption at their schools," the article notes later, "as they wait to open their pouches." But on the first day of school at Yonkers, one student said the lines actually went pretty smoothly, and they ended up having a live conversation with a friend during lunch and "felt human"...] Other students were not so enthralled by the pouch; some reported seeing classmates bypass the Yondr pouch by using their Apple watches, buying "burner" phones and putting them in the pouch, breaking the pouch and other tricks to get to their phones.

[Yondr CEO Graham] Dugoni acknowledged that there will always be some students who can figure out how to get around the restrictions. The purpose of the pouches, he said, was to create a culture change in a school and create an environment conducive to their learning and development. More than 70% of high school teachers in the U.S. say cellphones are a major classroom distraction, according to the Pew Research Center Center.

Yondr CEO Graham Dugoni uses a flip phone, the article points out, and says "Our whole perspective is that it's not taking something away from students, it's giving them something back."

He says his larger mission is to create chances for people "to experience life outside of a fully digital realm" — and that Yondr now has school partners in all 50 U.S. states, and in 45 different countries: The cost of buying the pouches — roughly $25-30 per student — has set off debates around how schools should be spending their limited budgets. It's a particular issue for districts struggling with crumbling infrastructure, limited textbooks and access to other technology needed to learn...Districts in various states have reported spending from $26,000 to over $370,000, with Cincinnati Schools saying they spent $500,000 to provide pouches for students in grades 7-12.
Intel

Intel Will Shed 24,000 Employees This Year, Retreat In Germany, Poland, Costa Rica, and Ohio (theverge.com) 43

Intel announced it will cut approximately 24,000 jobs in 2025 and cancel or scale back projects in Germany, Poland, Costa Rica, and Ohio as part of CEO Lip-Bu Tan's sweeping restructuring efforts. By the end of the year, the struggling chipmaker plans to have "just around 75,000 'core employees' in total," according to The Verge. "It's not clear if the layoffs will slow now that we're over halfway through the year, but Intel states today that it has already 'completed the majority of the planned headcount actions it announced last quarter to reduce its core workforce by approximately 15 percent.'" From the report: Intel employed 109,800 people at the end of 2024, of which 99,500 were "core employees," so the company is pushing out around 24,000 people this year -- shrinking Intel by roughly one-quarter. (It has also divested other businesses, shrinking the larger organization as well.) [...] Today, on the company's earnings call, Intel's says that Intel had overinvested in new factories before it had secured enough demand, that its factories had become "needlessly fragmented," and that it needs to grow its capacity "in lock step" with achieving actual milestones. "I do not subscribe to the belief that if you build it, they will come. Under my leadership, we will build what customers need when they need it, and earn their trust," says Tan.

Now, in Germany and Poland, where Intel was planning to spend tens of billions of dollars respectively on "mega-fabs" that would employ 3,000 workers, and on an assembly and test facility that would employ 2,000 workers, the company will "no longer move forward with planned projects" and is apparently axing them entirely. Intel has had a presence in Poland since 1993, however, and the company did not say its R&D facilities there are closing. (Intel had previously pressed pause on the new Germany and Poland projects "by approximately two years" back in 2024.)

In Costa Rica, where Intel employs over 3,400 people, the company will "consolidate its assembly and test operations in Costa Rica into its larger sites in Vietnam." Metzger tells The Verge that over 2,000 Costa Rica employees should remain to work in engineering and corporate, though. The company is also cutting back in Ohio: "Intel will further slow the pace of construction in Ohio to ensure spending is aligned with market demand." Intel CFO David Zinsner says Intel will continue to make investments there, though, and construction will continue.

Iphone

Apple To Lean on AI Tool To Help iPhone Battery Lifespan for Devices in iOS 19 (bloomberg.com) 25

Apple is planning to use AI technology to address a frequent source of customer frustration: the iPhone's battery life. From a report: The company is planning an AI-powered battery management mode for iOS 19, an iPhone software update due in September, according to people with knowledge of the matter. The enhancement will analyze how a person uses their device and make adjustments to conserve energy, said the people, who asked not to be identified because the service hasn't been announced.

To create the technology -- part of the Apple Intelligence platform -- the company is using battery data it has collected from users' devices to understand trends and make predictions for when it should lower the power draw of certain applications or features. There also will be a lock-screen indicator showing how long it will take to charge up the device, said the people.

AI

One Blogger Helped Spark NVIDIA's $600B Stock Collapse (marketwatch.com) 33

On January 24th Brooklyn blogger Jeffrey Emanuel made the case for shorting NVIDIA, remembers MarketWatch, "due to a number of shifting tides in the AI world, including the emergence of a China-based company called DeepSeek."

He published his 12,000-word post "on his personal blog and then shared it with the Value Investors Club website and across Reddit, X and other platforms." The next day he saw 35 people read his post. "But then the post started to go viral..." Well-known venture capitalist Chamath Palihapitiya shared Emanuel's post on Nvidia's short case with his 1.8 million X followers. Successful early stage investor Naval Ravikant shared the post with his 2.6 million followers... Morgan Brown, a vice president of product and growth at Dropbox, pointed to it in a thread that was viewed over 13 million times. Emanuel's own X post got nearly half a million views. He also quickly gained about 13,000 followers on the platform, going from about 2,000 to more than 15,000 followers...

[Emanuel] pointed to the fact that so many people in San Jose were reading his blog post. He theorized that many of them were Nvidia employees with thousands — or even millions — of dollars worth of Nvidia stock tied up in employee stock options. With that much money in a single asset, Emanuel speculated that many were already debating whether to hold the stock or sell it to lock in profits. He believes his blog post helped convince some of them to sell. "A lot of the sell pressure you saw on Monday morning wasn't necessarily what you might think. I believe a fair amount of that was from shares that had never been active because they had been sitting in workplace.schwab.com accounts..."

Emanuel stresses he's "the most bullish on AI," with MarketWatch emphasizing that "while the points Emanuel laid out in his blog post might be bearish for Nvidia, he still thinks they paint a positive future for AI." Nevertheless, Monday NVIDIA's market capitalization dropped $600 billion, which MarketWatch calls "the largest single-day market-cap drop to date for any company." What countless Wall Street firms and investment analysts had seemingly missed was being pointed out by some guy in his apartment.... Matt Levine, the prominent Bloomberg News financial columnist, noted the online chatter that claimed Emanuel's post "was an important catalyst" for the stock-market selloff and said it was a "candidate for the most impactful short research report ever." Emanuel spent the rest of the week booked solid as hedge funds paid him $1,000 per hour to speak on the phone and give his take on Nvidia and AI...

Emanuel wrote that the industry may be running low on quality data to train that AI — that is, a potential "data wall" is looming that could slow down AI scaling and reduce some of that need for training resources... Some of these companies, like Alphabet, have also been investing in building out their own semiconductor chips. For a while, Nvidia's hardware has been the best for training AI, but that might not be the case forever as more companies, such as Cerebras, build better hardware. And other GPU makers like AMD are updating their drivers software to be more competitive with Nvidia... Add all these things together — unsustainable spending and data-center building, less training data to work with, better competing hardware and more efficient AI — and you get a future where it's harder to imagine Nvidia's customers spending as much as they currently are on Nvidia hardware... "If you know that a company will only earn supersized returns for a couple years, you don't apply a multiple. You certainly don't put a 30-times multiple," Emanuel told MarketWatch.

The article notes that DeepSeek "is open-source and has been publishing technical papers out in the open for the past few months... The $5.6 million training-cost statistic that many investors cited for sparking the DeepSeek market panic was actually revealed in the V3 technical paper published on Dec. 26."
Businesses

Internet-Connected 'Smart' Products for Babies Suddenly Start Charging Subscription Fees (msn.com) 134

The EFF has complained that in general "smart" products for babies "collect a ton of information about you and your baby on an ongoing basis". (For this year's "worst in privacy" product at CES they chose a $1,200 baby bassinet equipped with a camera, a microphone, and a radar sensor...)

But today the Washington Post reported on a $1,700 bassinet that surprised the mother of a one-month-old when it "abruptly demanded money for a feature she relied on to soothe her baby to sleep." The internet-connected bassinet... reliably comforted her 1-month-old — just as it had her first child — until it started charging $20 a month for some abilities, including one that keeps the bassinet's motion and sounds at one level all night. The level-lock feature previously was available without a fee. "It all felt really intrusive — like they went into our bedroom and clawed back this feature that we've been depending on...." When the Snoo's maker, Happiest Baby, introduced a premium subscription for some of the bassinet's most popular features in July, owners filed dozens of complaints to the Federal Trade Commission and the Better Business Bureau, coordinated review bombs and vented on social media — saying the company took advantage of their desperation for sleep to bait-and-switch them...

Happiest Baby isn't the only baby gear company that has rolled out a subscription. In 2023, makers of the Miku baby monitor, which retails for up to $400, elicited similar fury from parents when it introduced a $10 monthly subscription for most features. A growing number of internet-connected products have lost software support or functionality after purchase in recent years, such as Spotify's Car Thing — a $90 Bluetooth streaming device that the company announced in May it plans to discontinue — and Levi's $350 smart jacket, which let users control their phones by swiping sensors on its sleeve...

Seventeen consumer protection and tech advocacy groups cited Happiest Baby and Car Thing in a letter urging the FTC to create guidelines that ensure products retain core functionality without the imposition of fees that did not exist when the items were originally bought.

The Times notes that the bassinets are often resold, so the subscription fees are partly to cover the costs of supporting new owners, according to Happiest Baby's vice president for marketing and communications. But the article three additional perspectives:
  • "This new technology is actually allowing manufacturers to change the way the status quo has been for decades, which is that once you buy something, you own it and you can do whatever you want. Right now, consumers have no trust that what they're buying is actually going to keep working." — Lucas Gutterman, who leads the Public Interest Research Group's "Design to Last" campaign.
  • "It's a shame to be beholden to companies' goodwill, to require that they make good decisions about which settings to put behind a paywall. That doesn't feel good, and you can't always trust that, and there's no guarantee that next week Happiest Baby isn't going to announce that all of the features are behind a paywall." — Elizabeth Chamberlain, sustainability director at iFixit.
  • "It's no longer just an out-and-out purchase of something. It's a continuous rental, and people don't know that." — Natasha Tusikov, an associate professor at York University

Social Networks

Cory Doctorow Asks: Can Interoperability End 'Enshittification' and Fix Social Media? (pluralistic.net) 69

This weekend Cory Doctorow delved into "the two factors that make services terrible: captive users, and no constraints." If your users can't leave, and if you face no consequences for making them miserable (not solely their departure to a competitor, but also fines, criminal charges, worker revolts, and guerrilla warfare with interoperators), then you have the means, motive and opportunity to turn your service into a giant pile of shit... Every economy is forever a-crawl with parasites and monsters like these, but they don't get to burrow into the system and colonize it until policymakers create rips they can pass through.
Doctorow argues that "more and more critics are coming to understand that lock-in is the root of the problem, and that anti-lock-in measures like interoperability can address it." Even more important than market discipline is government discipline, in the form of regulation. If Zuckerberg feared fines for privacy violations, or moderation failures, or illegal anticompetitive mergers, or fraudulent advertising systems that rip off publishers and advertisers, or other forms of fraud (like the "pivot to video"), he would treat his users better. But Facebook's rise to power took place during the second half of the neoliberal era, when the last shreds of regulatory muscle that survived the Reagan revolution were being devoured... But it's worse than that, because Zuckerberg and other tech monopolists figured out how to harness "IP" law to get the government to shut down third-party technology that might help users resist enshittification... [Doctorow says this is "why companies are so desperate to get you to use their apps rather than the open web"] IP law is why you can't make an alternative client that blocks algorithmic recommendations. IP law is why you can't leave Facebook for a new service and run a scraper that imports your waiting Facebook messages into a different inbox. IP law is why you can't scrape Facebook to catalog the paid political disinformation the company allows on the platform...
But then Doctorow argues that "Legacy social media is at a turning point," citing as "a credible threat" new systems built on open standards like Mastodon (built on Activitypub) and Bluesky (built on Atproto): I believe strongly in improving the Fediverse, and I believe in adding the long-overdue federation to Bluesky. That's because my goal isn't the success of the Fediverse — it's the defeat of enshtitification. My answer to "why spend money fixing Bluesky?" is "why leave 20 million people at risk of enshittification when we could not only make them safe, but also create the toolchain to allow many, many organizations to operate a whole federation of Bluesky servers?" If you care about a better internet — and not just the Fediverse — then you should share this goal, too... Mastodon has one feature that Bluesky sorely lacks — the federation that imposes antienshittificatory discipline on companies and offers an enshittification fire-exit for users if the discipline fails. It's long past time that someone copied that feature over to Bluesky.
Doctorow argues that federated and "federatable" social media "disciplines enshittifiers" by freeing social media's captive audiences.

"Any user can go to any server at any time and stay in touch with everyone else."
United States

Should In-Game Currency Receive Federal Government Banking Protections? (yahoo.com) 91

Friday America's consumer watchdog agency "proposed a rule to give virtual video game currencies protections similar to those of real-world bank accounts..." reports the Washington Post, "so players can receive refunds or compensation for unauthorized transactions, similar to how banks are required to respond to claims of fraudulent activity." The Consumer Financial Protection Bureau is seeking public input on a rule interpretation to clarify which rights are protected and available to video game consumers under the Electronic Fund Transfer Act. It would hold video game companies subject to violations of federal consumer financial law if they fail to address financial issues reported by customers. The public comment period lasts from Friday through March 31. In particular, the independent federal agency wants to hear from gamers about the types of transactions they make, any issues with in-game currencies, and stories about how companies helped or denied help.

The effort is in response to complaints to the bureau and the Federal Trade Commission about unauthorized transactions, scams, hacking attempts and account theft, outlined in an April bureau report that covered banking in video games and virtual worlds. The complaints said consumers "received limited recourse from gaming companies." Companies may ban or lock accounts or shut down a service, according to the report, but they don't generally guarantee refunds to people who lost property... The April report says the bureau and FTC received numerous complaints from players who contacted their banks regarding unauthorized charges on Roblox. "These complaints note that while they received refunds through their financial institutions, Roblox then terminated or locked their account," the report says.

Google

US Regulators Seek To Break Up Google, Forcing Chrome Sale (apnews.com) 144

In a 23-page document (PDF) filed late Wednesday, U.S. regulators asked a federal judge to break up Google after a court found the tech giant of maintaining an abusive monopoly through its dominant search engine. As punishment, the DOJ calls for a sale of Google's Chrome browser and restrictions to prevent Android from favoring its own search engine. The Associated Press reports: Although regulators stopped short of demanding Google sell Android too, they asserted the judge should make it clear the company could still be required to divest its smartphone operating system if its oversight committee continues to see evidence of misconduct. [...] The Washington, D.C. court hearings on Google's punishment are scheduled to begin in April and Mehta is aiming to issue his final decision before Labor Day. If [U.S. District Judge Amit Mehta] embraces the government's recommendations, Google would be forced to sell its 16-year-old Chrome browser within six months of the final ruling. But the company certainly would appeal any punishment, potentially prolonging a legal tussle that has dragged on for more than four years.

Besides seeking a Chrome spinoff and a corralling of the Android software, the Justice Department wants the judge to ban Google from forging multibillion-dollar deals to lock in its dominant search engine as the default option on Apple's iPhone and other devices. It would also ban Google from favoring its own services, such as YouTube or its recently-launched artificial intelligence platform, Gemini. Regulators also want Google to license the search index data it collects from people's queries to its rivals, giving them a better chance at competing with the tech giant. On the commercial side of its search engine, Google would be required to provide more transparency into how it sets the prices that advertisers pay to be listed near the top of some targeted search results. The measures, if they are ordered, threaten to upend a business expected to generate more than $300 billion in revenue this year.
"The playing field is not level because of Google's conduct, and Google's quality reflects the ill-gotten gains of an advantage illegally acquired," the Justice Department asserted in its recommendations. "The remedy must close this gap and deprive Google of these advantages."
DRM

US Copyright Office Grants DMCA Exemption For Ice Cream Machines (extremetech.com) 82

The Librarian of Congress has granted a DMCA exemption allowing independent repair of soft-serve machines, addressing the persistent issue of restricted repairs on McDonald's frequently malfunctioning machines. ExtremeTech reports: Section 1201 of the DMCA makes it illegal to bypass a digital lock protecting copyrighted work. That can be the DRM on a video file you download from iTunes, the carrier locks that prevent you from using a phone on other networks, or even the software running a McDonald's soft serve machine that refuses to accept third-party repairs. By locking down a product with DRM, companies can dictate when and how items are repaired under threat of legal consequences. This is an ongoing issue for people who want to fix all those busted ice cream machines.

Earlier this year, iFixit and Public Knowledge submitted their request for an exemption that would have covered a wide swath of industrial equipment. The request included everything from building management software to the aforementioned ice cream machines. Unfortunately, the Copyright Office was unconvinced on some of these points. However, the Librarian of Congress must be just as sick as the rest of us to hear the ice cream machine is broken. The office granted an exception for "retail-level food preparation equipment."

That means restaurant owners and independent repair professionals will be able to bypass the software locks that keep kitchen machinery offline until the "right" repair services get involved. This should lower prices and speed up repairs in such situations. Public Knowledge and iFixit express disappointment that the wider expansion was not granted, but they're still celebrating with some delicious puns (and probably ice cream).
"There's nothing vanilla about this victory; an exemption for retail-level commercial food preparation equipment will spark a flurry of third-party repair activity and enable businesses to better serve their customers," said Meredith Rose, Senior Policy Counsel at Public Knowledge.
Businesses

Users Say T-Mobile Must Pay For Killing 'Lifetime' Price Lock (arstechnica.com) 56

An anonymous reader shares a report: T-Mobile promised users who bought certain mobile plans that it would never raise their prices for as long as they lived -- but then raised their prices this year. So it's no surprise that 2,000 T-Mobile customers complained to the government about a price hike on plans that were advertised as having a lifetime price lock. "I am still alive and T-Mobile is increasing the price for service by $5 per line. How is this a lifetime price lock?" one customer in Connecticut asked the Federal Communications Commission in a complaint that we obtained through a public records request.

"I am not dead yet," a customer in New York wrote bluntly, saying they had bought a plan with a "guarantee for life." Both of those customers said they purchased T-Mobile's senior plan marketed to people aged 55 and up. While the price hikes apply to customers on various plans regardless of their age, many of the complaints to the FCC came from people in the 55+ age group. Some pointed out that if T-Mobile simply waits long enough, the carrier won't have to serve 55-and-up customers forever.

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