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Microsoft, OpenAI Reach Non-Binding Deal To Allow OpenAI To Restructure

1 month 3 weeks ago
Microsoft and OpenAI have signed a non-binding deal to restructure their partnership, paving the way for OpenAI to shift into a conventional for-profit model and potentially go public. Reuters reports: Details on the new commercial arrangements were not disclosed, but the companies said they were working to finalize terms of a definitive agreement. [...] Microsoft invested $1 billion in OpenAI in 2019 and another $10 billion at the beginning of 2023. Under their previous agreement, Microsoft had exclusive rights to sell OpenAI's software tools through its Azure cloud computing platform and had preferred access to the startup's technology. Microsoft was once designated as OpenAI's sole compute provider, though it lessened its grip this year to allow OpenAI to pursue its own data center project, Stargate, including signing $300 billion worth of long-term contracts with Oracle, as well as another cloud deal with Google. As OpenAI's revenue grows into the billions, it is seeking a more conventional corporate structure and partnerships with additional cloud providers to expand sales and secure the computing capacity needed to meet demand. Microsoft, meanwhile, wants continued access to OpenAI's technology even if OpenAI declares its models have reached humanlike intelligence - a milestone that would end the current partnership under existing terms. OpenAI said under current terms, its nonprofit arm will receive more than $100 billion -- about 20% of the $500 billion valuation it is seeking in private markets -- making it one of the most well-funded nonprofits, according to a memo from Bret Taylor, chairman of OpenAI's current nonprofit board. The companies did not disclose how much of OpenAI Microsoft will own, nor whether Microsoft will retain exclusive access to OpenAI's latest models and technology. Regulatory hurdles remain for OpenAI, as attorneys general in California and Delaware need to approve OpenAI's new structure. The company hopes to complete the conversion by year's end, or risk losing billions in funding tied to that timeline.

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Spotify Peeved After 10,000 Users Sold Data To Build AI Tools

1 month 3 weeks ago
An anonymous reader quotes a report from Ars Technica: For millions of Spotify users, the "Wrapped" feature -- which crunches the numbers on their annual listening habits -- is a highlight of every year's end, ever since it debuted in 2015. NPR once broke down exactly why our brains find the feature so "irresistible," while Cosmopolitan last year declared that sharing Wrapped screenshots of top artists and songs had by now become "the ultimate status symbol" for tens of millions of music fans. It's no surprise then that, after a decade, some Spotify users who are especially eager to see Wrapped evolve are no longer willing to wait to see if Spotify will ever deliver the more creative streaming insights they crave. With the help of AI, these users expect that their data can be more quickly analyzed to potentially uncover overlooked or never-considered patterns that could offer even more insights into what their listening habits say about them. Imagine, for example, accessing a music recap that encapsulates a user's full listening history -- not just their top songs and artists. With that unlocked, users could track emotional patterns, analyzing how their music tastes reflected their moods over time and perhaps helping them adjust their listening habits to better cope with stress or major life events. And for users particularly intrigued by their own data, there's even the potential to use AI to cross data streams from different platforms and perhaps understand even more about how their music choices impact their lives and tastes more broadly. Likely just as appealing as gleaning deeper personal insights, though, users could also potentially build AI tools to compare listening habits with their friends. That could lead to nearly endless fun for the most invested music fans, where AI could be tapped to assess all kinds of random data points, like whose breakup playlists are more intense or who really spends the most time listening to a shared favorite artist. In pursuit of supporting developers offering novel insights like these, more than 18,000 Spotify users have joined "Unwrapped," a collective launched in February that allows them to pool and monetize their data. Voting as a group through the decentralized data platform Vana -- which Wired profiled earlier this year -- these users can elect to sell their dataset to developers who are building AI tools offering fresh ways for users to analyze streaming data in ways that Spotify likely couldn't or wouldn't. In June, the group made its first sale, with 99.5 percent of members voting yes. Vana co-founder Anna Kazlauskas told Ars that the collective -- at the time about 10,000 members strong -- sold a "small portion" of its data (users' artist preferences) for $55,000 to Solo AI. While each Spotify user only earned about $5 in cryptocurrency tokens -- which Kazlauskas suggested was not "ideal," wishing the users had earned about "a hundred times" more -- she said the deal was "meaningful" in showing Spotify users that their data "is actually worth something." Spotify responded to the collective by citing both trademark and policy violations. The company sent a letter to Unwrapped developers, warning that the project's name may infringe on Spotify's Wrapped branding, and that Unwrapped breaches developer terms. Specifically, Spotify objects to Unwrapped's use of platform data for AI/ML training and facilitating user data sales. "Spotify honors our users' privacy rights, including the right of portability," Spotify's spokesperson said. "All of our users can receive a copy of their personal data to use as they see fit. That said, UnwrappedData.org is in violation of our Developer Terms which prohibit the collection, aggregation, and sale of Spotify user data to third parties." Unwrapped says it plans to defend users' right to "access, control, and benefit from their own data," while providing reassurances that it will "respect Spotify's position as a global music leader."

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CISA program gave out $20k+ payments to unqualified employees, auditor says

1 month 3 weeks ago
The OIG says the Cyber Incentive program was rife with 'fraud, waste, and abuse'

The US Cybersecurity and Infrastructure Security Agency (CISA) mismanaged a program designed to retain skilled security professionals so badly that auditors have concluded it left the agency "unable to adequately protect the Nation from cyber threats." …

Brandon Vigliarolo

California Bill Lets Renters Escape Exclusive Deals Between ISPs and Landlords

1 month 3 weeks ago
California's legislature this week approved a bill to let renters opt out of bulk-billing arrangements that force them to pay for Internet service from a specific provider. ArsTechnica: The bill says that by January 1, a landlord must "allow the tenant to opt out of paying for any subscription from a third-party Internet service provider, such as through a bulk-billing arrangement, to provide service for wired Internet, cellular, or satellite service that is offered in connection with the tenancy." If a landlord fails to do so, the tenant "may deduct the cost of the subscription to the third-party Internet service provider from the rent," and the landlord would be prohibited from retaliating. The bill passed the state Senate in a 30-7 vote on Wednesday but needs Gov. Gavin Newsom's signature to become law. It was approved by the state Assembly in a 75-0 vote in April. Assemblymember Rhodesia Ransom, a Democratic lawmaker who authored the bill, told Ars today that lobby groups for Internet providers and real estate companies have been "working really hard" to defeat it. But she expects Newsom will approve. "I strongly believe that the governor is going to look at what this bill provides as far as protections for tenants and sign it into law," Ransom said in a phone interview.

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EU Countries Delay Deal on New Climate Goal, Diplomats Say

1 month 3 weeks ago
An anonymous reader shares a report: European Union countries have shelved plans to approve a new climate change target next week, after pushback from governments including France and Germany over plans to quickly land a deal, three EU diplomats told Reuters on Friday. Countries are discussing a legally-binding target to cut net EU greenhouse gas emissions by 90% by 2040, from 1990 levels - with a share of this covered by buying foreign carbon credits. The European Commission has said this would offer investors certainty and keep Europe on track for net zero emissions by 2050. Climate change has made Europe the world's fastest-warming continent, unleashing deadly heatwaves and record-breaking wildfires. But EU governments are divided over how ambitious to be in tackling global warming, as governments also try to increase defence spending and support struggling industries.

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