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AI

Google Considers Charging For AI-Powered Search 46

An anonymous reader quotes a report from the Financial Times: Google is considering charging for new "premium" features powered by generative artificial intelligence, in what would be the biggest ever shake-up of its search business. The proposed revamp to its cash cow search engine would mark the first time the company has put any of its core product behind a paywall, and shows it is still grappling with a technology that threatens its advertising business, almost a year and a half after the debut of ChatGPT. Google is looking at options including adding certain AI-powered search features to its premium subscription services, which already offer access to its new Gemini AI assistant in Gmail and Docs, according to three people with knowledge of its plans. Engineers are developing the technology needed to deploy the service but executives have not yet made a final decision on whether or when to launch it, one of the people said. Google's traditional search engine would remain free of charge, while ads would continue to appear alongside search results even for subscribers. But charging would represent the first time that Google -- which for many years offered free consumer services funded entirely by advertising -- has made people pay for enhancements to its core search product. "For years, we've been reinventing Search to help people access information in the way that's most natural to them," said Google. "With our generative AI experiments in Search, we've already served billions of queries, and we're seeing positive Search query growth in all of our major markets. We're continuing to rapidly improve the product to serve new user needs."

It added: "We don't have anything to announce right now."
Businesses

JPMorgan Chase is About To Let Advertisers Target Customers Based on Their Spending (qz.com) 60

smooth wombat writes: Chase bank announced a new program that will allow brands to target Chase customers based on the customer's purchases. According to the press release, the new program is called Chase Media Solutions and "serves as a key conduit for brands, connecting them with consumers' personal passions and interests. In turn, Chase customers benefit from personalized offers and the ability to earn cash back with brands they love or are discovering for the first time."

The bank is hoping to combine insights from its large customer base and 6 million small business customers as part of its efforts to build out its own two-sided commerce platform and bring in benefits to both business clients and banking customers. Chase Media Solutions follows from the integration of card-linked marketing platform Figg, which JPMorgan Chase & Co. acquired in 2022, the bank said.

Advertising

Discord To Start Showing Ads This Week After History of Shunning Them (pymnts.com) 70

Starting this week, Discord will show ads on the site from video game companies, some of which will offer users gifts for carrying out in-game tasks. According to the Wall Street Journal, Discord said users will be able to turn off the ads in their settings. From a report: The sources said Discord aims to hire more than a dozen ad sales people. WSJ said the addition of ads marks a pivot for Discord, whose CEO Jason Citron has repeatedly said the company would not rely on advertisers the way platforms like Facebook and Instagram do.
Wireless Networking

'Smart Devices Are Turning Out To Be a Poor Investment' (androidpolice.com) 155

An anonymous reader quotes a report from Android Police, written by Dhruv Bhutani: As someone who is an early adopter of all things smart and has invested a significant amount of money in building a fancy smart home, it saddens me to say that I feel cheated by the thousands of dollars I've spent on smart devices. And it's not a one-off. Amazon's recent move to block off local ADB connections on Fire TV devices is the latest example in a long line of grievances. A brand busy wrestling away control from the consumer after they've bought the product, the software update gimps a feature that has been present on the hardware ever since it launched back in 2014. ADB-based commands let users take deep control of the hardware, and in the case of the Fire TV hardware, it can drastically improve the user experience. [...] A few years ago, I decided to invest in the NVIDIA Shield. The premium streamer was marketed as a utopia for streaming online and offline sources with the ability to plug in hard drives, connect to NAS drives, and more. At launch, it did precisely that while presenting a beautiful, clean interface that was a joy to interact with. However, subsequent updates have converted what was otherwise a clean and elegant solution to an ad-infested overlay that I zoom past to jump into my streaming app of choice. This problem isn't restricted to just the Shield. Even my Google TV running Chromecast has a home screen that's more of an advertising space for Google than an easy way to get to my content.

But why stop at streaming boxes? Google's Nest Hubs are equal victims of feature deterioration. I've spent hundreds of dollars on Nest Hubs and outfitted them in most of my rooms and washrooms. However, Google's consistent degradation of the user experience means I use these speakers for little more than casting music from the Spotify app. The voice recognition barely works on the best of days, and when it does, the answers tend to be wildly inconsistent. It wasn't always the case. In fact, at launch, Google's Nest speakers were some of the best smart home interfaces you could buy. You'd imagine that the experience would only improve from there. That's decidedly not the case. I had high hopes that the Fuchsia update would fix the broken command detection, but that's also not the case. And good luck to you if you decided to invest in Google Assistant-compatible displays. Google's announcement that it would no longer issue software or security updates to third-party displays like the excellent Lenovo Smart Display, right after killing the built-in web browser, is pretty wild. It boggles my mind that a company can get away with such behavior.

Now imagine the plight of Nest Secure owners. A home security system isn't something one expects to switch out for many many years. And yet, Google decided to kill the Nest Secure home monitoring solution merely three years after launching the product range. While I made an initial investment in the Nest ecosystem, I've since switched over to a completely local solution that is entirely under my control, stores data locally, and won't be going out of action because of bad decision-making by another company.
"It's clear to me that smart home devices, as they stand, are proving to be very poor investments for consumers," Bhutani writes in closing. "Suffice it to say that I've paused any future investments in smart devices, and I'll be taking a long and hard look at a company's treatment of its current portfolio before splurging out more cash. I'd recommend you do the same."
Businesses

Perplexity, an AI Startup Attempting To Challenge Google, Plans To Sell Ads (adweek.com) 25

An anonymous reader shares a report: Generative AI search engine Perplexity, which claims to be a Google competitor and recently snagged a $73.6 million Series B funding from investors like Jeff Bezos, is going to start selling ads, the company told ADWEEK. Perplexity uses AI to answer users' questions, based on web sources. It incorporates videos and images in the response and even data from partners like Yelp. Perplexity also links sources in the response while suggesting related questions users might want to ask.

These related questions, which account for 40% of Perplexity's queries, are where the company will start introducing native ads, by letting brands influence these questions, said company chief business officer Dmitry Shevelenko. When a user delves deeper into a topic, the AI search engine might offer organic and brand-sponsored questions. Perplexity will launch this in the upcoming quarters, but Shevelenko declined to disclose more specifics. While Perplexity touts on its site that search should be "free from the influence of advertising-driven models," advertising was always in the cards for the company. "Advertising was always part of how we're going to build a great business," said Shevelenko.

Facebook

Meta Used Spyware to Access Its Users' Activities on Rival Platforms (observer.com) 32

New documents from a class action against Meta "reveal some of the specific ways it tackled rivals in recent years," reports the Observer.

"One of them was using software made by a mobile data analytics company called Onavo in 2016 to access user activities on Snapchat, and eventually Amazon and YouTube, too." Facebook acquired Onavo in 2013 and shut it down in 2019 after a TechCrunch report revealed that the company was paying teenagers to use the software to collect user data.

In 2020, two Facebook users filed a class action lawsuit in the U.S. District Court for the Northern District of California against Meta, then called Facebook, alleging the company engaged in anticompetitive practices and exploited user data. In 2023, the plaintiffs' attorney Brian J. Dunne submitted documents listing how Facebook used Onavo's software to spy on competitors, including Snapchat. According to the documents, made public this week, the Onavo team pitched and launched a project codenamed "Ghostbusters" — in reference to the Snapchat logo — where they developed "kits that can be installed on iOS or Android that intercept traffic for specific sub-domains," allowing them "to read what would otherwise be encrypted traffic so we can measure in-app usage."

The documents also included a presentation from the Onavo team to Mark Zuckerberg showing that they had the ability to track "detailed in-app activity" by "parsing Snapchat analytics collected from incentivized participants in Onavo's program...." The technology was used to do the same to YouTube from 2017 to 2018 and Amazon in 2018, according to the documents. "The intended and actual result of this program was to harm competition, including Facebook's then-nascent Social Advertising competitor Snapchat," the document alleged.

Facebook

Facebook Allegedly Killed Its Own Streaming Service To Help Sell Netflix Ads (gizmodo.com) 14

An anonymous reader quotes a report from Gizmodo: Do you remember Facebook Watch? Me neither. Mark Zuckerberg's short-lived streaming service never really got off the ground, but court filings unsealed in Meta's antitrust lawsuit claim "Watch" was kneecapped starting in 2018 to protect Zuckerberg's advertising relationship with Netflix CEO Reed Hastings. "For nearly a decade, Netflix and Facebook enjoyed a special relationship," said plaintiffs in filings (PDF) made public on Saturday. "It is no great mystery how this close partnership developed, and who was its steward: from 2011-2019, Netflix's then-CEO Hastings sat on Facebook's board and personally directed the companies' relationship"

The filings detail Hastings' uncomfortably close relationship with Meta's upper management, including Zuckerberg and Sheryl Sandberg. During these years, Netflix was allegedly granted special access to Facebook users' private message inboxes, among other privileged analytics tools, in exchange for hundred-million-dollar advertising deals. This gave Facebook greater dominance in its all-important ad division, plaintiffs allege, so the company was fine to retreat from Netflix's streaming territory by shuttering Watch. In 2017, Facebook Watch began signing deals to populate its streaming service with original TV Shows from movie stars such as Bill Murray. A year later, the service attempted to license the popular '90s TV show Dawson's Creek. Facebook Watch had meaningful reach on the home screen of the social media platform, and an impressive budget as well. Facebook and Netflix appeared ready to butt heads in the streaming world, and the Netflix cofounder found himself in the middle as a Facebook board member. [...]

Netflix was a large advertiser to Facebook, and plaintiffs allege Zuckerberg shuttered its promising Watch platform for the sake of the greater advertising business. Zuckerberg personally emailed the head of Facebook Watch in May of 2018, Fidji Simo, to tell her their budget was being slashed by $750 million, just two years after Watch's launch, according to court filings. The sudden pivot meant Facebook was now dismantling the streaming business it had spent the last two years growing. During this time period, Netflix increased its ad spend on Facebook to roughly $150 million a year and allegedly entered into agreements for increased data analytics. By early 2019, the ad spend increased to roughly $200 million a year. Hastings left Facebook's board later in 2019.

UPDATE: Meta (Again) Denies Netflix Read Facebook Users' Private Messenger Messages.
Privacy

Steve Wozniak Decries Tracking's Effect on Privacy, Calls Out 'Hypocrisy' of Only Banning TikTok (cnn.com) 137

In an interview Saturday, CNN first asked Steve Wozniak about Apple's "walled garden" approach — and whether there's any disconnect between Apple's stated interest in user security and privacy, and its own self-interest?

Wozniak responded, "I think there are things you can say on all sides of it. "I'm kind of glad for the protection that I have for my privacy and for you know not getting hacked as much. Apple does a better job than the others.

And tracking you — tracking you is questionable, but my gosh, look at what we're accusing TikTok of, and then go look at Facebook and Google... That's how they make their business! I mean, Facebook was a great idea. But then they make all their money just by tracking you and advertising.

And Apple doesn't really do that as much. I consider Apple the good guy.

So then CNN directly asked Wozniak's opinion about the proposed ban on TikTok in the U.S. "Well, one, I don't understand it. I don't see why. I mean, I get a lot of entertainment out of TikTok — and I avoid the social web. But I love to watch TikTok, even if it's just for rescuing dog videos and stuff.

And so I'm thinking, well, what are we saying? We're saying 'Oh, you might be tracked by the Chinese'. Well, they learned it from us.

I mean, look, if you have a principle — a person should not be tracked without them knowing it? It's kind of a privacy principle — I was a founder of the EFF. And if you have that principle, you apply it the same to every company, or every country. You don't say, 'Here's one case where we're going to outlaw an app, but we're not going to do it in these other cases.'

So I don't like the hypocrisy. And that's always obviously common from a political realm.

United States

DOT Wants To Know How Big Airlines Use Passenger Data (theregister.com) 11

The U.S. Department of Transportation has announced it will conduct a review of the data practices of the country's ten largest airlines, amid concerns over potential misuse of customer information for upselling, overcharging, targeted advertising, and third-party data sales, as well as the security of systems handling sensitive data such as passport numbers. From a report: The probe will look at air carriers' policies and procedures to determine if they are safeguarding personal info properly, unfairly or deceptively monetizing it, or sharing it with third parties, the agency said yesterday. If they're indeed doing anything "problematic," they can look forward to scrutiny, fines, and new rules, says the DOT. "Airline passengers should have confidence that their personal information is not being shared improperly with third parties or mishandled by employees," said US Transportation Secretary Pete Buttigieg.

"This review of airline practices is the beginning of a new initiative by DOT to ensure airlines are being good stewards of sensitive passenger data." The ten airlines going under the magnifying glass are Delta, United, American, Southwest, Alaska, JetBlue, Spirit, Frontier, Hawaiian and Allegiant.

AI

AI-Generated Science 32

Published scientific papers include language that appears to have been generated by AI-tools like ChatGPT, showing how pervasive the technology has become, and highlighting longstanding issues with some peer-reviewed journals. From a report: Searching for the phrase "As of my last knowledge update" on Google Scholar, a free search tool that indexes articles published in academic journals, returns 115 results. The phrase is often used by OpenAI's ChatGPT to indicate when the data the answer it is giving users is coming from, and the specific months and years found in these academic papers correspond to previous ChatGPT "knowledge updates."

"As of my last knowledge update in September 2021, there is no widely accepted scientific correlation between quantum entanglement and longitudinal scalar waves," reads a paper titled "Quantum Entanglement: Examining its Nature and Implications" published in the "Journal of Material Sciences & Manfacturing [sic] Research," a publication that claims it's peer-reviewed. Over the weekend, a tweet showing the same AI-generated phrase appearing in several scientific papers went viral.

Most of the scientific papers I looked at that included this phrase are small, not well known, and appear to be "paper mills," journals with low editorial standards that will publish almost anything quickly. One publication where I found the AI-generated phrase, the Open Access Research Journal of Engineering and Technology, advertises "low publication charges," an "e-certificate" of publication, and is currently advertising a call for papers, promising acceptance within 48 hours and publication within four days.
Advertising

Microsoft Criticized For Chrome Popup Ads Resembling Malware That Urge Users to Switch to Bing (theregister.com) 32

"Multiple users around the world have started to notice new Microsoft Bing pop-up ads that look a lot like malware..." reports Lifehacker, describing the adds as "very low quality" and "extremely pixelated..."

"It's just Microsoft doing a bad job of trying to get you to switch to its products."

The Register explains: [W]hile using Google's desktop browser on Windows 10 or 11, a dialog box suddenly and irritatingly appears to the side of the screen urging folks to make Microsoft's Bing the default search engine in Chrome. Not only that, netizens are told they can use Chrome to interact with Bing's OpenAI GPT-4-powered chat bot, allowing them to ask questions and get answers using natural language. We can forgive those who thought this was malware at first glance. "Chat with GPT-4 for free on Chrome!" the pop-up advert, shown below, declares. "Get hundreds of daily chat turns with Bing AI."

It goes on: "Try Bing as default search," then alleges: "Easy to switch back. Install Bing Service to improve chat experience." Users are encouraged to click on "Yes" in the Microsoft pop-up to select Bing as Chrome's default search engine. What's really gross is the next part. Clicking "Yes" installs the Bing Chrome extension and changes the default search provider. Chrome alerts the user in another dialog box that something potentially malicious is trying to update their settings. Google's browser recommends you click on a "Change it back" button to undo the tweak.

But Redmond is one step ahead, displaying a message underneath Chrome's alert that reads: "Wait — don't change it back! If you do, you'll turn off Microsoft Bing Search for Chrome and lose access to Bing AI with GPT-4 and DALL-E 3."

This is where we're at: Two Big Tech giants squabbling in front of users via dialog boxes.

"Essentially, users are caught in a war of pop-ups between one company trying to pressure you into using its AI assistant/search engine," writes Engadget, "and another trying to keep you on its default (which you probably wanted if you installed Chrome in the first place).

"Big Tech's battles for AI and search supremacy are turning into obnoxious virtual shouting matches in front of users' eyeballs as they try to browse the web."

Or, as Lifehacker puts it, "If Microsoft really wants to increase the number of users turning to Bing for its search results, it needs to prove that there's a real reason to switch. And these malware-like ads aren't the solution."
Businesses

Does Reddit Represent the Return of the Junk Stock IPO? (forbes.com) 74

An article in Inc notes a "wild projection" in Reddit's SEC filing that Reddit's global market opportunity by 2027 is $1.4 trillion." Some of the numbers lead back to a single individual: Sam Altman. The co-founder and chief executive of ChatGPT-maker OpenAI owns an 8.7 percent stake in Reddit, more than its co-founder and CEO, Steve Huffman, who owns 3.3 percent... Altman, through various funds and holding companies he owns or manages, controls more than a million shares of Reddit at $60 million in aggregate purchase price — and holds more than 9 percent of voting rights...

Discussing Reddit's future, financial analyst and journalist Herb Greenberg recently told CNBC, "This is an AI play."

But the senior investing editor for Kiplinger.com argues that retail investors "may want to hold tight before rushing out to buy the Reddit IPO." While IPO stocks tend to have strong first-day showings, returns for the first year are generally weak, says the team of analysts at Trivariate Research, a market research firm based in New York. And since 2020, "the average IPO has lagged its industry average by 30% over the subsequent three years following its first closing price..."

Other commenters have noted that Reddit's allotment of shares to select Redditors could lower demand on the first day of trading, which would work against any IPO pop.

"Over the past few years, there have been a bunch of IPOs in the U.S. in which overhyped names enjoyed flashy stock-market debuts only to drop sharply soon after," notes the Street. Notable examples include Coinbase, which plummeted by almost 90% after its debut, Robinhood, still down 53% since its IPO, and Rivian, down over 91% since its debut. However, it's crucial to note that all of these IPOs occurred in 2021 amid market euphoria fueled by low interest rates, significant economic stimulus, and the lingering effects of the Covid-19 pandemic. Although the current macroeconomic landscape differs from three years ago, valuations of tech and growth stocks remain stretched.
Kiplingers.com concludes it "boils down to your own personal investing goals and risk tolerance. If you do decide to buy Reddit stock when it first begins trading, do so in a small amount that you can afford to lose."

But they also cite analysis from David Trainer, CEO of New Constructs, a research firm powered by artificial intelligence. "Reddit's IPO marks the return of the junk IPO," Trainer wrote in Forbes. "[The valuation] implies that Reddit will grow its user base to 26 times current levels, which would be nearly five times the size of [Snapchat-maker] Snap, and a highly unlikely feat. Reddit looks overvalued, and we think investors should pass on this IPO."

Trainer writes: [T]he company has never been profitable and should not be a publicly traded company... I think the company may never monetize its platform without angering its users and the entire premise of Reddit is user-generated content. This business model is inescapably built on a catch-22: make money or please users... Reddit looks overvalued, and I think investors should pass on this IPO.
Buyers and analysts told the site Marketing Brew "that they see the platform as nice-to-have, but that it is not an essential part of their media plans, like Meta or Google are." "They've always been solidly in the second or third tier of social networks," alongside Snap, Pinterest, and X, Brian Wieser, a former GroupM exec who's now author of the industry newsletter Madison and Wall, told Marketing Brew.
Yet Trainer notes that "98% of Reddit's revenue in 2023 came from third-party advertising on the site and 28% of all revenue came from ten customers," and "Reddit's cost of revenue, sales & marketing, general & administrative, and research & development costs were 117% of revenue in 2023."

Trainer concludes "Reddit is nowhere near breakeven. Reddit is an unprofitable social media company fighting for users."

Bloomberg adds that the subreddit r/WallStreetBets "has threatened to bet against the stock, with many people noting that the company still loses money two decades into its existence. (Reddit lost $90.8 million last year, down from $158.6 million the year before.)" Some have complained that the invitation to invest fails to make up for the unpaid labor they've invested making the site work... In 2021 the platform's WallStreetBets forum ignited a meme-stock frenzy, propelling skyward the stocks of nostalgic but struggling companies like GameStop Corp. and AMC Entertainment Holdings Inc. and sending shockwaves through the financial industry... When it goes public, the platform that invented meme stocks runs the risk of becoming one itself.

Reddit noted the possibility as a risk in its IPO filing. "Given the broad awareness and brand recognition of Reddit, including as a result of the popularity of r/wallstreetbets among retail investors," the company warned that its stock could "experience extreme volatility ... which could cause you to lose all or part of your investment if you are unable to sell your shares at or above the initial offering price."

Users on WallStreetBets got a kick out of the fact that the company listed the forum as a risk factor, posting about it with a sly smiling emoji...

Meanwhile, reports that marketers are infiltrating subreddits have been confirmed. Over 200 businesses have "integrated Reddit Pro into their digital strategies," reports Search Engine Land, including "well-known names such as Taco Bell, the NFL, and The Wall Street Journal...

"During the initial alpha testing phase with approximately 20 businesses, Reddit reported its Pro partners, on average, generated 11 additional posts and comments per month."
Wireless Networking

Google's Newest Office Has AI Designers Toiling In a Wi-Fi Desert (reuters.com) 85

Google's swanky new office building located on the Alphabet's Mountain View, California headquarters has been "plagued for months by inoperable, or, at best, spotty Wi-Fi," reports Reuters citing six people familiar with the matter. "Its recliner-laden collaborative workspaces do not work well for teams carting around laptops, since workers must plug into ethernet cables at their desks to get consistent internet service. Some make do by using their phones as hotspots." From the report: The company promoted the new building and surrounding campus in a 229-page glossy book highlighting its cutting-edge features, such as "Googley interiors" and "an environment where everyone has the tools they need to be successful."

But, a Google spokeswoman acknowledged, "we've had Wi-Fi connectivity issues in Bay View." She said Google "made several improvements to address the issue," and the company hoped to have a fix in coming weeks. According to one AI engineer assigned to the building, which also houses members of the advertising team, the wonky Wi-Fi has been no help for Google pushing a three day per week return-to-office mandate. "You'd think the world's leading internet company would have worked this out," he said.

Managers have encouraged workers to stroll outside or sit at the adjoining cafe where the Wi-Fi signal is stronger. Some were issued new laptops recently with more powerful Wi-Fi chips. Google has not publicly disclosed the reasons for the Wi-Fi problems, but workers say the 600,000-square-foot building's swooping, wave-like rooftop swallows broadband like the Bermuda Triangle.

Emulation (Games)

Nintendo Switch Emulator Yuzu To Shut Down, Pay $2.4 Million To Settle Lawsuit (liliputing.com) 62

An anonymous reader quotes a report from Liliputing: Yuzu is a free and open source emulator that makes it possible to run Nintendo Switch games on Windows, Linux, and Android devices. First released in 2018, the software has been under constant development since then (the Android port was released less than a year ago). But last week Nintendo sued the developers, claiming that the primary purpose of the software is to circumvent Nintendo Switch encryption and allow users to play pirated games. Rather than fight the case in court, Tropic Haze (the developers behind Yuzu) have agreed to a settlement which involves paying $2.4 million in damages to Nintendo and basically shutting down Yuzu.

As part of a permanent injunction, Tropic Haze has agreed to stop distributing, advertising, or promoting Yuzu or any of its source code or features or any other "software or devices that circumvent Nintendo's technical protection measures." The court is also ordering the developers to turn over the yuzu-emu.org website to Nintendo and bars them "from supporting or facilitating access" to any other related websites, social media, chatrooms, or apps. In one of the more bizarre parts of the court order, the Yuzu team is told to delete all "circumvention devices," which includes any tools used for development of Yuzu and "all copies of Yuzu."

Social Networks

How Will Reddit's IPO Change the Service? (bbc.co.uk) 86

"Reddit users have been reacting with deep gloom to the firm saying it plans to sell shares to the public..." the BBC recently reported: The company has said its plans are "exciting" and will offer the business opportunities for growth. However many users worry the move will fundamentally change the website... "When the most important customers shift from [users] to shareholders, the product always [suffers]," said one person. "It becomes 'what can we do this quarter to squeak out an additional point of revenue', instead of 'how can we make this product better'...."

[T]he company has recorded losses every year since its start, including more than $90m last year. In the filing, Reddit said it had not started trying to make money seriously until 2018. It reported $804m in revenue last year, up more than 20% from 2022. Advertising accounted for nearly all of the revenue, but in a note to prospective investors chief executive Steve Huffman said he was excited about opportunities to make the platform a venue for commerce and license its content to AI companies.

Government

How the Pentagon Learned To Use Targeted Ads To Find Its Targets (wired.com) 55

An anonymous reader quotes an excerpt from a Wired article: In 2019, a government contractor and technologist named Mike Yeagley began making the rounds in Washington, DC. He had a blunt warning for anyone in the country's national security establishment who would listen: The US government had a Grindr problem. A popular dating and hookup app, Grindr relied on the GPS capabilities of modern smartphones to connect potential partners in the same city, neighborhood, or even building. The app can show how far away a potential partner is in real time, down to the foot. But to Yeagley, Grindr was something else: one of the tens of thousands of carelessly designed mobile phone apps that leaked massive amounts of data into the opaque world of online advertisers. That data, Yeagley knew, was easily accessible by anyone with a little technical know-how. So Yeagley -- a technology consultant then in his late forties who had worked in and around government projects nearly his entire career -- made a PowerPoint presentation and went out to demonstrate precisely how that data was a serious national security risk.

As he would explain in a succession of bland government conference rooms, Yeagley was able to access the geolocation data on Grindr users through a hidden but ubiquitous entry point: the digital advertising exchanges that serve up the little digital banner ads along the top of Grindr and nearly every other ad-supported mobile app and website. This was possible because of the way online ad space is sold, through near-instantaneous auctions in a process called real-time bidding. Those auctions were rife with surveillance potential. You know that ad that seems to follow you around the internet? It's tracking you in more ways than one. In some cases, it's making your precise location available in near-real time to both advertisers and people like Mike Yeagley, who specialized in obtaining unique data sets for government agencies.

Working with Grindr data, Yeagley began drawing geofences -- creating virtual boundaries in geographical data sets -- around buildings belonging to government agencies that do national security work. That allowed Yeagley to see what phones were in certain buildings at certain times, and where they went afterwards. He was looking for phones belonging to Grindr users who spent their daytime hours at government office buildings. If the device spent most workdays at the Pentagon, the FBI headquarters, or the National Geospatial-Intelligence Agency building at Fort Belvoir, for example, there was a good chance its owner worked for one of those agencies. Then he started looking at the movement of those phones through the Grindr data. When they weren't at their offices, where did they go? A small number of them had lingered at highway rest stops in the DC area at the same time and in proximity to other Grindr users -- sometimes during the workday and sometimes while in transit between government facilities. For other Grindr users, he could infer where they lived, see where they traveled, even guess at whom they were dating.

Intelligence agencies have a long and unfortunate history of trying to root out LGBTQ Americans from their workforce, but this wasn't Yeagley's intent. He didn't want anyone to get in trouble. No disciplinary actions were taken against any employee of the federal government based on Yeagley's presentation. His aim was to show that buried in the seemingly innocuous technical data that comes off every cell phone in the world is a rich story -- one that people might prefer to keep quiet. Or at the very least, not broadcast to the whole world. And that each of these intelligence and national security agencies had employees who were recklessly, if obliviously, broadcasting intimate details of their lives to anyone who knew where to look. As Yeagley showed, all that information was available for sale, for cheap. And it wasn't just Grindr, but rather any app that had access to a user's precise location -- other dating apps, weather apps, games. Yeagley chose Grindr because it happened to generate a particularly rich set of data and its user base might be uniquely vulnerable.
The report goes into great detail about how intelligence and data analysis techniques, notably through a program called Locomotive developed by PlanetRisk, enabled the tracking of mobile devices associated with Russian President Vladimir Putin's entourage. By analyzing commercial adtech data, including precise geolocation information collected from mobile advertising bid requests, analysts were able to monitor the movements of phones that frequently accompanied Putin, indicating the locations and movements of his security personnel, aides, and support staff.

This capability underscored the surveillance potential of commercially available data, providing insights into the activities and security arrangements of high-profile individuals without directly compromising their personal devices.
AI

Ghost Kitchens Are Advertising AI-Generated Food On DoorDash and Grubhub (404media.co) 48

Emanuel Maiberg reports via 404 Media: Dozens of Ghost kitchens, restaurants that serve food exclusively by delivery on apps like DoorDash and Grubhub, are selling food that they promote to customers with AI-generated images. It's common for advertisements to stage or edit pictures of food to make it look more enticing, but in these cases the ghost kitchens are showing people pictures of food that literally doesn't exist, and looks nothing like the actual items they're selling, sometimes because the faulty AI is producing physically impossible food items. [...] Some ghost kitchens exist as unmarked commercial kitchens with no actual restaurant you can visit that simply fulfill orders for a variety of brands that only exist on the food delivery services. Other ghost kitchens piggyback on existing, real restaurant kitchens to fulfill orders for those brands that exist only on food delivery apps.

[The food from a business on DoorDash called Pasta Lovers] actually comes from Tony's Pizzeria in North Brooklyn, which also fulfills orders for a cheesesteak brand called Philly Cheez, a hero sandwich brand called Hero Mania, and a wrap brand called That's A Wrap. All of these brands deliver food from different ghost kitchens across the country, and all of them feature the same type of AI-generated images to promote their food, some of which looks ridiculous. [...]

"We don't allow the use of AI-generated images and if we find a merchant is using any, we will remove those images from their menu," Grubhub, which also operates Seamless, told me in an email. However, at the time of writing the AI-generated images on Seamless I sent the company are still live on its site. "We know how important it is for diners to have realistic expectations of what they are ordering and should expect to receive, which is why we share image guidelines with our partners and our system reviews image submissions before they're allowed on our platform." "DoorDash is committed to showcasing realistic representations of meals that customers would receive when ordering online," DoorDash told me in an email. "Showcasing high-quality, accurate, and realistic menu images is crucial for maintaining customer trust and generating sales through DoorDash Marketplace."
"This is all incredibly depressing," concludes Maiberg. "A local pizzeria can't get by unless it makes sandwiches for ghost kitchen brands, the people who make a living taking photographs of food are being displaced by AI tools, and gigantic food delivery apps are still making money by taking a cut from restaurants and screwing over gig delivery drivers."

"AI-generated images of food that people can order and eat finally brings us to a shockingly literal manifestation of Jean Baudrillard's Simulacra. Baudrillard would say the Spicy Philly Cheese from Philly Cheez is "never that which conceals the truth -- it is the truth which conceals that there is none."
Television

Streaming To Overtake Pay TV Subscription Revenue For the First Time in US This Year (hollywoodreporter.com) 13

Streaming revenue will overtake pay TV subscription revenue in the U.S. for the first time later in 2024, helped by the addition of ad tiers by various streamers, according to a new forecast. From a report: Total revenues from streaming, including subscription and advertising revenue, will start topping revenue from pay TV subscriptions in the third quarter of 2024, research company Ampere Analysis projects in a new study unveiled on Monday. "Streaming will continue to race ahead as traditional pay TV declines -- with the value of pay TV in 2028 expected to fall to half the value it saw at its peak in 2017," it predicts. Streaming subscribers overtook pay TV subs in the U.S. in 2016, but "streaming's lower average revenue per user (ARPU), which currently sits at around a tenth that of pay TV, means that revenue is only now catching up," Ampere explained. U.S. pay TV revenue will still be narrowly ahead of streaming revenue in the second quarter at $17.1 billion to $17 billion, followed by a $17.3 billion to $16.7 billion streaming lead in the third quarter, according to the research firm's projections.
Google

Google Says Microsoft Offered To Sell Bing To Apple in 2018, But Search-quality Issues Got in the Way (cnbc.com) 21

Microsoft offered to sell its Bing search engine to Apple in 2018, Google said in a court filing earlier this month. The document, from Google's antitrust case against the U.S. Justice Department, was unsealed on Friday. From a report: In the filing earlier this month, Google argued that Microsoft pitched Apple in 2009, 2013, 2015, 2016, 2018 and 2020 about making Bing the default in Apple's Safari web browser, but each time, Apple said no, citing quality issues with Bing. "In each instance, Apple took a hard look at the relative quality of Bing versus Google and concluded that Google was the superior default choice for its Safari users. That is competition," Google wrote in the filing.

The Justice Department said in its own newly unsealed filing that Microsoft has spent almost $100 billion on Bing over 20 years. The Windows and Office software maker launched Bing in 2009, following search efforts under the MSN and Windows Live brands. Today Bing has 3% global market share, according to StatCounter. In the fourth quarter, Microsoft generated $3.2 billion from search and news advertising, while Google search and other revenue totaled $48 billion. Google said in its filing that when Microsoft reached out to Apple in 2018, emphasizing gains in Bing's quality, Microsoft offered to either sell Bing to Apple or establish a Bing-related joint venture with the company.

Businesses

Reddit Files To Go Public (cnbc.com) 98

Reddit has filed its initial public offering (IPO) with the SEC on Thursday. "The company plans to trade on the New York Stock Exchange under the ticker symbol 'RDDT,'" reports CNBC. From the report: Its market debut, expected in March, will be the first major tech initial public offering of the year. It's the first social media IPO since Pinterest went public in 2019. Reddit said it had $804 million in annual sales for 2023, up 20% from the $666.7 million it brought in the previous year, according to the filing. The social networking company's core business is reliant on online advertising sales stemming from its website and mobile app.

The company, founded in 2005 by technology entrepreneurs Alexis Ohanian and Steve Huffman, said it has incurred net losses since its inception. It reported a net loss of $90.8 million for the year ended Dec. 31, 2023, compared with a net loss of $158.6 million the year prior. [...] Reddit said it plans to use artificial intelligence to improve its ad business and that it expects to open new revenue channels by offering tools and incentives to "drive continued creation, improvements, and commerce." It's also in the early stages of developing and monetizing a data-licensing business in which third parties would be allowed to access and search data on its platform.

For example, Google on Thursday announced an expanded partnership with Reddit that will give the search giant access to the company's data to, among other uses, train its AI models. "In January 2024, we entered into certain data licensing arrangements with an aggregate contract value of $203.0 million and terms ranging from two to three years," Reddit said, regarding its data-licensing business. "We expect a minimum of $66.4 million of revenue to be recognized during the year ending December 31, 2024 and the remaining thereafter."
On Wednesday, Reddit said it plans to sell a chunk of its IPO shares to 75,000 of its most loyal users.

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