Category Archives: Business

Economy and business news. Business is the practice of making one’s living or making money by producing or buying and selling products (such as goods and services). It is also “any activity or enterprise entered into for profit.” A business entity is not necessarily separate from the owner and the creditors can hold the owner liable for debts the business has acquired

Amazon to Pay $31 Million in Privacy Violation Penalties for Alexa Voice Assistant, Ring Camera

Amazon agreed Wednesday to pay a $25 million civil penalty to settle Federal Trade Commission allegations it violated a child privacy law and deceived parents by keeping for years kids’ voice and location data recorded by its popular Alexa voice assistant.

Separately, the company agreed to pay $5.8 million in customer refunds for alleged privacy violations involving its doorbell camera Ring.

The Alexa-related action orders Amazon to overhaul its data deletion practices and impose stricter, more transparent privacy measures. It also obliges the tech giant to delete certain data collected by its internet-connected digital assistant, which people use for everything from checking the weather to playing games and queueing up music.

“Amazon’s history of misleading parents, keeping children’s recordings indefinitely, and flouting parents’ deletion requests violated COPPA (the Child Online Privacy Protection Act) and sacrificed privacy for profits,” Samuel Levine, the FCT consumer protection chief, said in a statement. The 1998 law is designed to shield children from online harms.

FTC Commissioner Alvaro Bedoya said in a statement that “when parents asked Amazon to delete their kids’ Alexa voice data, the company did not delete all of it.”

The agency ordered the company to delete inactive child accounts as well as certain voice and geolocation data.

Amazon kept the kids’ data to refine its voice recognition algorithm, the artificial intelligence behind Alexa, which powers Echo and other smart speakers, Bedoya said. The FTC complaint sends a message to all tech companies who are “sprinting to do the same” amid fierce competition in developing AI datasets, he added.

“Nothing is more visceral to a parent than the sound of their child’s voice,” tweeted Bedoya, the father of two small children.

Amazon said last month that it has sold more than a half-billion Alexa-enabled devices globally and that use of the service increased 35% last year.

In the Ring case, the FTC says Amazon’s home security camera subsidiary let employees and contractors access consumers’ private videos and provided lax security practices that enabled hackers to take control of some accounts.

Amazon bought California-based Ring in 2018, and many of the violations alleged by the FTC predate the acquisition. Under the FTC’s order, Ring is required to pay $5.8 million that would be used for consumer refunds.

Amazon said it disagreed with the FTC’s claims on both Alexa and Ring and denied violating the law. But it said the settlements “put these matters behind us.”

“Our devices and services are built to protect customers’ privacy, and to provide customers with control over their experience,” the Seattle-based company said.

In addition to the fine in the Alexa case, the proposed order prohibits Amazon from using deleted geolocation and voice information to create or improve any data product. The order also requires Amazon to create a privacy program for its use of geolocation information.

The proposed orders must be approved by federal judges.

FTC commissioners had unanimously voted to file the charges against Amazon in both cases.

China’s Micron Chips Ban Is Litmus Test for South Korea

The semiconductor trade war between Washington and Beijing may ensnare Seoul as South Korea must decide between backing its closest ally or embracing a lucrative export opportunity presented by China, its top trading partner. 

The decision will reveal how closely South Korea is aligned with the U.S., its second-largest export market, experts said. 

The dilemma facing Seoul emerged after China announced that it was banning the use of U.S.-based Micron Technology’s broad range of computer memory and storage technologies. 

Liu Pengyu, a Chinese Embassy spokesperson in Washington, told VOA’s Korean Service on May 24 that Beijing’s cybersecurity regulators had assessed that Micron’s chips “pose a major security risk to China’s key information infrastructure supply chain and impact China’s national security.” 

The ban echoed that set by the U.S. on China’s Huawei Technologies in May 2019, when the Trump administration cited security concerns related to the company’s wireless networking equipment, especially those related to 5G. The Biden administration in November 2022 banned approvals of new telecommunications equipment from Huawei and ZTE because the products pose “an unacceptable risk” to U.S. national security.

U.S. Representative Mike Gallagher, the Republican chairman of the House Select Committee on Strategic Competition between the United States and the Chinese Communist Party, has called for South Korea to “act to prevent backfilling” the market gap left by Micron.

Litmus test

The U.S. has been trying to block China’s access to the technology needed to make advanced chips that can be used to modernize its military. Micron’s chips are used by Chinese industries that assemble consumer electronics such as smartphones. Although Beijing is funding the development of home-grown advanced chips such as those used in artificial intelligence applications, China’s chipmakers, for now, manufacture simpler products such as those used in home appliances.

Seoul’s decision on whether to dissuade its top chipmakers such as Samsung or SK Hynix from selling chips to China could indicate how closely South Korean President Yoon Suk Yeol is aligned with Washington. 

“This would certainly be a litmus test to see if Seoul and other allies are willing to support Washington’s policies designed to slow China’s technology growth,” said Andrew Yeo, the SK-Korea Foundation chair in Korea Studies at Brookings Institution.

Robert Rapson, who served as charge d’affaires and deputy chief of mission at the U.S. embassy in Seoul, 2018-2021, said, “This is the first real test of the Yoon administration’s policy of enhanced alignment with the U.S. on China.” 

He continued, “In other words, will [South] Korea sacrifice core economic, commercial interests of its flagship high-tech companies in keeping with [Washington’s] policy and U.S. wishes?”

He added that Seoul has the right to seek “some credit or offset” from Washington if it blocks backfilling the Micron gap. 

A business decision

A spokesperson for the South Korean Foreign Ministry told VOA’s Korean Service on Tuesday that the government “plans to continue efforts to protect the interest of our companies through cooperation with relevant agencies and engagements with diplomatic missions abroad.”  

South Korea sent 55% of its semiconductor exports to China last year even as  

its semiconductor exports have been in a steep decline since August 2022, according to a Bank of Korea report released on Tuesday, cited by Business Korea.

Robert Manning, a senior fellow at the Stimson Center’s Reimagining U.S. Grand Strategy Project, said “As the security environment in Northeast Asia has become fraught with North Korea’s provocative nuclear efforts and Chinese economic coercion, the U.S.-ROK alliance has become more vital to Seoul.” South Korea’s official name is the Republic of Korea (ROK).

“South Korea will [need to] sacrifice to a degree to sustain broad alignment with the U.S.,” Manning said. “But South Korea has its own interests so there are likely to be limits.” 

Troy Stangarone, senior director at Korea Economic Institute, said, “While China might face short-term shortage in chips if Samsung and SK Hynix withheld capacity, the ultimate result would only be the further expansion of domestic Chinese semiconductor firms which undermine U.S. long-term goals and potentially the very firms the United States is working with to improve its own supply chains.”

Dennis Wilder, senior director for East Asia affairs at the White House’s National Security Council during the George W. Bush administration, said, “This is a business decision, and it really should, in my view, be left to the South Korean companies to make this business decision.”  

Wilder continued, “But it’s far more important for South Korea to align with the United States on the very high-end semiconductor chips and the attempts to keep things out of the hands of the Chinese military that can help modernize.”  

Beijing’s ban came on the last day of the Group of Seven countries summit on May 19-21. The group agreed to de-risk the global economy and diversify trade away from China in an effort to counter its economic coercion. This is defined as “a threatened or actual imposition of economic costs by a state on a target with the objective of extracting a policy concession,” according to testimony by Bonnie Glaser, managing director, of the German Marshall Fund Indo-Pacific program, before the Congressional-Executive Commission on China.

U.S. Commerce Secretary Gina Raimondo said on Saturday that Washington “firmly opposes” China’s ban on Micron. She made the remark at a press conference held after the meeting of the U.S.-led Indo-Pacific Economic Framework (IPEF) that China sees as a body aimed at countering its economic rise. 

On Monday, an article in Chinese state-run media Global Times said it would be “natural” for South Korea’s chipmakers to export to fill the market void left by the Micron ban.

“There is no possibility for South Korea to replace its chips with other goods in its exports to China,” the report said. 

And on Sunday, Bloomberg quoted an unidentified source familiar with the situation as saying South Korea will veer away from supplying chips to China.

South Korea’s exports to China in April were $9.52 billion while exports to the U.S. reached $9.18 billion, according to the Trade Ministry’s latest data. The gap between South Korea’s exports to China and the U.S. narrowed to just $340 million in April from $1.15 billion in January driven by a strong dollar and EV demand.

Key US Official Calls for Tech Companies to ‘Do Something’ About AI

The director of the leading U.S. cybersecurity agency has a message for scientists and top technology company officials who are warning that artificial intelligence could lead to the end of humankind: Take action.

“If you actually think that these capabilities can lead to extinction of humanity, well, let’s come together and do something about it,” the Cybersecurity and Infrastructure Security Agency’s Jen Easterly told an audience Wednesday.

“While we’re trying to put a regulatory framework in place, think about self-regulation,” she told an Axios News Shapers event in Washington. “Think about what you can do to slow this down.”

The comments by the CISA director come just a day after more than 350 researchers and technology executives issued a one-sentence warning about the dangers of artificial intelligence, or AI.

“Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war,” they said in a post on the website for the Center for AI Safety.

 

Those signing onto the warning included the co-founder and CEO of OpenAI, the company behind Chat GPT, Microsoft’s chief technology officer, the CEO of Google’s AI research lab and Geoffrey Hinton, sometimes called “the godfather of artificial intelligence.”

Hinton, notably, quit his job at Google earlier in May to focus on warning others of the dangers of AI.

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U.S. government officials, like CISA’s Easterly, have likewise been warning about the dangers posed by AI.

“AI will be the most powerful capability of our time,” Easterly told students at Vanderbilt University during a speech earlier this month.

“I believe it will also be the most powerful weapon of our time,” she added. “While one person will use this technology to plan a dinner party, another will use the capability to plan a cyberattack or a terrorist attack.”

Easterly has previously called for “smart regulation” of AI technology and products, warning that tech companies, as with other technologies, are too focused on getting AI products to market quickly and not paying enough attention to safety.

Earlier in May she said that CISA has held discussions with tech companies about a way forward for AI.

In April, CISA’s parent agency, the Department of Homeland Security, launched its own initiative to take on the dangers posed by artificial intelligence.

“We must address the many ways in which artificial intelligence will drastically alter the threat landscape and augment the arsenal of tools we possess to succeed in the face of these threats,” Homeland Security Secretary Alejandro Mayorkas said at the time.

 

Theranos Founder Elizabeth Holmes Starts 11-year Sentence for Blood-Testing Hoax

Disgraced Theranos CEO Elizabeth Holmes is in custody at a Texas prison where she could spend the next 11 years for overseeing a blood-testing hoax that became a parable about greed and hubris in Silicon Valley, according to the Federal Bureau of Prisons.

Holmes, 39, on Tuesday entered a federal women’s prison camp located in Bryan, Texas — where the federal judge who sentenced Holmes in November recommended she be incarcerated. The minimum-security facility is about 152 kilometers (about 94 miles) northwest of Houston, where Holmes grew up aspiring to become a technology visionary along the lines of Apple co-founder Steve Jobs.

As she begins her sentence, Holmes is leaving behind two young children — a son born in July 2021 a few weeks before the start of her trial and a 3-month old daughter who was conceived after a jury convicted her on four felony counts of fraud and conspiracy in January 2022.

Holmes has been free on bail since then, most recently living in the San Diego, California, area with the children’s father, William “Billy” Evans. The couple met in 2017 around the same time Holmes was under investigation for the collapse of Theranos, a startup she founded after dropping out of Stanford University when she was just 19.

Build up to startup

While she was building up Theranos, Holmes grew closer to Ramesh, “Sunny” Balwani, who would become her romantic partner as well as an investor and fellow executive in the Palo Alto, California, company.

Together, Holmes and Balwani promised Theranos would revolutionize health care with a technology that could quickly scan for diseases and other problems with a few drops of blood taken with a finger prick.

The hype surrounding that purported breakthrough helped Theranos raise nearly $1 billion from enthralled investors, assemble an influential board of directors that include former Presidential cabinet members George Shultz, Henry Kissinger and James Mattis and turned Holmes into a Silicon Valley sensation with a fortune valued at $4.5 billion on paper in 2014.

But it all blew up after serious dangerous flaws in Theranos’ technology were exposed in a series of explosive articles in The Wall Street Journal that Holmes and Balwani tried to thwart. Holmes and Balwani, who had been secretly living together while running Theranos, broke up after the revelations in the Journal and the company collapsed. In 2018, the U.S. Justice Department charged both with a litany of white-collar crimes in a case aimed at putting a stop to the Silicon Valley practice of overselling the capabilities of a still-developing technology — a technique that became known as “fake it ’til you make it.”

Holmes admitted making mistakes at Theranos, but steadfastly denied committing crimes during seven often-fascinating days of testimony on the witness stand during her trial. At one point, she told the jury about being sexually and emotionally abused by Balwani while he controlled her in ways that she said clouded her thinking. Balwani’s attorney steadfastly denied Holmes allegations, which was one of the key reasons they were tried separately.

Balwani, 57, was convicted on 12 felony counts of fraud and conspiracy in a trial that began two months after Holmes’ ended. He is serving a nearly 13-year sentence in a Southern California prison.

Maintaining she was treated unfairly during the trial, Holmes sought to remain free while she appeals her conviction. But that bid was rejected by U.S. District Judge Edward Davila, who presided over her trial, and the Ninth Circuit Court of Appeals, leaving her no other avenue left to follow but the one that will take her to prison nearly 20 years after she founded Theranos.

Attorneys representing Holmes did not immediately respond when contacted by The Associated Press for statement on Tuesday.

650 women on 37 acres

Federal Prison Camp Bryan, a minimum-security prison camp encompasses about 37 acres of land and houses about 650 women — including “Real Housewives of Salt Lake City” star Jennifer Shah, who was sentenced earlier this year to 6 1/2 years in prison for defrauding thousands of people in a yearslong telemarketing scam.

Most federal prison camps don’t even have fences and house those the Bureau of Prisons considers to be the lowest security risk. The prison camps also often have minimal staffing and many of the incarcerated people work at prison jobs.

According to a 2016 FPC Bryan inmate handbook, those in the Texas facility who are eligible to work can earn between 12 cents and $1.15 per hour in their job assignments, which include food service roles and factory employment operated by Federal Prison Industries.

Federal prison camps were originally designed with low security to make operations easier and allow inmates tasked with performing work at the prison, such as landscaping and maintenance, to avoid repeatedly checking in and out of a main prison facility. But the lax security opened a gateway for contraband, such as drugs, cellphones and weapons. The limited security also led to a number of escapes from prison camps.

In November, a man incarcerated at another federal prison camp in Arizona pulled out a smuggled gun in a visitation area and tried to shoot his wife in the head. The gun jammed and no one was injured. But the incident exposed major security flaws at the facility and the agency’s director ordered a review of security at all federal prison camps around the U.S.

China’s Shenzhou-16 Mission Takes Off Bound for Space Station

China sent three astronauts to its Tiangong space station on Tuesday, putting a civilian scientist into space for the first time as Beijing pursues plans to send a manned mission to the Moon by the end of the decade.   

The world’s second-largest economy has invested billions of dollars in its military-run space program in a push to catch up with the United States and Russia.   

The Shenzhou-16 crew took off atop a Long March 2F rocket from the Jiuquan Satellite Launch Center in northwest China at 9:31 am (0131 GMT), AFP journalists and state TV showed.   

Leading the mission is commander Jing Haipeng on his fourth extra-terrestrial trip, as well as engineer Zhu Yangzhu and Beihang University professor Gui Haichao, the first Chinese civilian in space.   

The Tiangong is the crown jewel of China’s space program, which has also seen it land robotic rovers on Mars and the Moon and made it the third country to put humans in orbit.   

The mission is the first to the Tiangong space station since it entered its “application and development” stage, Beijing said.   

Once in orbit, the Shenzhou-16 will dock at the space station’s Tianhe core module, before the crew meet three colleagues from the previous manned Shenzhou-15 flight, who have been at the space station for six months and will return to Earth in the coming days.   

The mission will “carry out large-scale, in-orbit experiments… in the study of novel quantum phenomena, high-precision space time-frequency systems, the verification of general relativity, and the origin of life,” CMSA spokesperson Lin Xiqiang told reporters on Monday.   

The space station was resupplied with drinking water, clothing, food and propellant this month in preparation for Shenzhou-16’s arrival.   

One expert told AFP that Tuesday’s flight represented “a regular crew rotation flight as one crew hands over to another”, but even that was significant.   

“Accumulating depth of experience in human spaceflight operations is important and doesn’t involve new spectacular milestones all the time,” said Jonathan McDowell, an astronomer and astrophysicist at the Harvard-Smithsonian Center for Astrophysics.   

‘Heavenly palace’    

Plans for China’s “space dream” have been put into overdrive under President Xi Jinping.   

China is planning to build a lunar base, and CMSA spokesman Lin reaffirmed on Monday Beijing’s plan to land a manned mission on the Moon by 2030.   

“The overall goal is to achieve China’s first manned landing on the Moon by 2030 and carry out lunar scientific exploration and related technological experiments,” he said.   

The final module of the T-shaped Tiangong — which means “heavenly palace” — successfully docked with the core structure last year.   

The station carries several pieces of cutting-edge scientific equipment, state news agency Xinhua reported, including “the world’s first space-based cold atomic clock system”.   

The Tiangong is expected to remain in low Earth orbit at between 400 and 450 kilometers above the planet for at least 10 years.   

It is constantly crewed by rotating teams of three astronauts.   

China has been effectively excluded from the International Space Station since 2011, when the United States banned NASA from engaging with the country — pushing Beijing to develop the Tiangong.   

China’s space agency reiterated on Monday it is actively seeking international cooperation in the project.   

China “is looking forward to and welcomes the participation of foreign astronauts in the country’s space station flight missions”, Lin said.   

Beijing plans to send two manned space missions to the space station every year, according to the CMSA.   

The next will be Shenzhou-17, which is expected to be launched in October. 

US Commerce Secretary: US ‘Won’t Tolerate’ China’s Ban on Micron Chips

The United States “won’t tolerate” China’s effective ban on purchases of Micron Technology MU.O memory chips and is working closely with allies to address such “economic coercion,” U.S. Commerce Secretary Gina Raimondo said Saturday.

Raimondo told a news conference after a meeting of trade ministers in the U.S.-led Indo-Pacific Economic Framework talks that the U.S. “firmly opposes” China’s actions against Micron.

These “target a single U.S. company without any basis in fact, and we see it as plain and simple economic coercion and we won’t tolerate it, nor do we think it will be successful.”

China’s cyberspace regulator said May 21 that Micron, the biggest U.S. memory chip maker, had failed its network security review and that it would block operators of key infrastructure from buying from the company, prompting it to predict a revenue reduction.

The move came a day after leaders of the G7 industrial democracies agreed to new initiatives to push back against economic coercion by China — a decision noted by Raimondo.

“As we said at the G7 and as we have said consistently, we are closely engaging with partners addressing this specific challenge and all challenges related to China’s non-market practices.”

Raimondo also raised the Micron issue in a meeting Thursday with China’s Commerce Minister, Wang Wentao.

She also said the IPEF agreement on supply chains and other pillars of the talks would be consistent with U.S. investments in the $52 billion CHIPS Act to foster semiconductor production in the United States.

“The investments in the CHIPS Act are to strengthen and bolster our domestic production of semiconductors. Having said that, we welcome participation from companies that are in IPEF countries, you know, so we expect that companies from Japan, Korea, Singapore, etc, will participate in the CHIPS Act funding,” Raimondo said.

China, South Korea Agree to Strengthen Talks on Chip Industry

China and South Korea have agreed to strengthen dialog and cooperation on semiconductor industry supply chains, amid broader global concerns over chip supplies, sanctions and national security, China’s commerce minister said.

Wang Wentao met with South Korean Trade Minister Ahn Duk-geun on the sidelines of the Asia-Pacific Economic Cooperation (APEC) conference in Detroit, which ended Friday. 

They exchanged views on maintaining the stability of the industrial supply chain and strengthening cooperation in bilateral, regional and multilateral fields, according to a statement from the Chinese Ministry of Commerce on Saturday.

Wang also said that China is willing to work with South Korea to deepen trade ties and investment cooperation.

However, a South Korean statement on the same meeting did not mention chips, instead saying the country’s trade minister had asked China to stabilize the supply of key raw materials — and asked for a predictable business environment for South Korean companies in China.

“The South Korean side expressed that communication is needed between working-level officials over all industries,” not just for semiconductors, a source with knowledge of the matter told Reuters.

The source declined to be identified because they were not authorized to speak to the media.

South Korea is in the crosshairs of a tit-for-tat row between the United States and China over semiconductors.

China’s cyberspace regulator said last week that Micron had failed its network security review and that it would block operators of key infrastructure from buying from the company.

The U.S. has pushed for countries to limit China’s access to advanced chips, citing a host of reasons including national security.

About 40% South Korea’s chip exports go to China, according to trade ministry data, while U.S. technology and equipment are necessary for South Korean chipmakers Samsung Electronics and SK Hynix.

Regulators Take Aim at AI to Protect Consumers, Workers

As concerns grow over increasingly powerful artificial intelligence systems like ChatGPT, the nation’s financial watchdog says it’s working to ensure that companies follow the law when they’re using AI.

Already, automated systems and algorithms help determine credit ratings, loan terms, bank account fees, and other aspects of our financial lives. AI also affects hiring, housing and working conditions.

Ben Winters, senior counsel for the Electronic Privacy Information Center, said a joint statement on enforcement released by federal agencies last month was a positive first step.

“There’s this narrative that AI is entirely unregulated, which is not really true,” he said. “They’re saying, ‘Just because you use AI to make a decision, that doesn’t mean you’re exempt from responsibility regarding the impacts of that decision. This is our opinion on this. We’re watching.’”

In the past year, the Consumer Finance Protection Bureau said it has fined banks over mismanaged automated systems that resulted in wrongful home foreclosures, car repossessions and lost benefit payments, after the institutions relied on new technology and faulty algorithms.

There will be no “AI exemptions” to consumer protection, regulators say, pointing to these enforcement actions as examples.

Consumer Finance Protection Bureau Director Rohit Chopra said the agency has “already started some work to continue to muscle up internally when it comes to bringing on board data scientists, technologists and others to make sure we can confront these challenges” and that the agency is continuing to identify potentially illegal activity.

Representatives from the Federal Trade Commission, the Equal Employment Opportunity Commission, and the Department of Justice, as well as the CFPB, all say they’re directing resources and staff to take aim at new tech and identify negative ways it could affect consumers’ lives.

“One of the things we’re trying to make crystal clear is that if companies don’t even understand how their AI is making decisions, they can’t really use it,” Chopra said. “In other cases, we’re looking at how our fair lending laws are being adhered to when it comes to the use of all of this data.”

Under the Fair Credit Reporting Act and Equal Credit Opportunity Act, for example, financial providers have a legal obligation to explain any adverse credit decision. Those regulations likewise apply to decisions made about housing and employment. Where AI make decisions in ways that are too opaque to explain, regulators say the algorithms shouldn’t be used.

“I think there was a sense that, ‘Oh, let’s just give it to the robots and there will be no more discrimination,’” Chopra said. “I think the learning is that that actually isn’t true at all. In some ways the bias is built into the data.”

EEOC Chair Charlotte Burrows said there will be enforcement against AI hiring technology that screens out job applicants with disabilities, for example, as well as so-called “bossware” that illegally surveils workers.

Burrows also described ways that algorithms might dictate how and when employees can work in ways that would violate existing law.

“If you need a break because you have a disability or perhaps you’re pregnant, you need a break,” she said. “The algorithm doesn’t necessarily take into account that accommodation. Those are things that we are looking closely at. … I want to be clear that while we recognize that the technology is evolving, the underlying message here is the laws still apply and we do have tools to enforce.”

OpenAI’s top lawyer, at a conference this month, suggested an industry-led approach to regulation.

“I think it first starts with trying to get to some kind of standards,” Jason Kwon, OpenAI’s general counsel, told a tech summit in Washington hosted by software industry group BSA. “Those could start with industry standards and some sort of coalescing around that. And decisions about whether or not to make those compulsory, and also then what’s the process for updating them, those things are probably fertile ground for more conversation.”

Sam Altman, the head of OpenAI, which makes ChatGPT, said government intervention “will be critical to mitigate the risks of increasingly powerful” AI systems, suggesting the formation of a U.S. or global agency to license and regulate the technology.

While there’s no immediate sign that Congress will craft sweeping new AI rules as European lawmakers are doing, societal concerns brought Altman and other tech CEOs to the White House this month to answer hard questions about the implications of these tools.

Investment in Solar Will Eclipse Oil in 2023, IEA Finds

Global investment in clean energy production in 2023 will be significantly larger than investment in fossil fuel-based energy generation, and for the first time, more money will be invested in solar energy than in the oil sector, according to a report issued by the International Energy Agency on Thursday.

The report, World Energy Investment 2023, finds that globally, $2.8 trillion will be invested in energy in 2023, including production, transmission and storage. Of that amount, $1.7 trillion will be invested in clean technology, which the IEA defines as “renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps.”

The estimate for clean energy for 2023 reflects a 24% increase over that for 2021 in a sector expected to continue growing for the foreseeable future, as governments worldwide attempt to meet the internationally agreed-on target of net-zero carbon emissions by 2050. Achieving that goal would allow the world to avoid some of the worst effects of global warming.

‘Moving fast’

While the report shows that the road to a zero-carbon future is long, it also offers the possibility that key interim goals, including total investment targets for 2030, remain achievable.

“Clean energy is moving fast — faster than many people realize,” IEA Executive Director Fatih Birol said in a statement accompanying the report. “This is clear in the investment trends, where clean technologies are pulling away from fossil fuels. For every dollar invested in fossil fuels, about 1.7 dollars are now going into clean energy. Five years ago, this ratio was 1-to-1. One shining example is investment in solar, which is set to overtake the amount of investment going into oil production for the first time.”

The report estimates that in 2023, total global investment in solar power technology will be $382 billion, compared with $371 billion invested in oil production. In 2013, the amount invested in oil production was $636 billion, five times larger than the $127 billion invested in solar.

No pandemic slowdown

Nat Bullard, an energy analyst and a senior contributor to BloombergNEF, which provides strategic research on the transition to a low-carbon economy, told VOA that the IEA report was clarifying after a period of complexity in the energy markets.

“We have had, in succession and overlapping, a pandemic, a supply chain crunch, inflation and a very, very large war all going on at once,” he said. “They’ve made long-term trends hard to see because you’ve had a lot of near-term variability.

“What the report highlights, and the IEA has generally been very clear, is that if you look on an evidence basis, during COVID we did not actually see any deceleration in interest in energy transition,” he said. “In the years after that, supply chain disruptions, high prices for hydrocarbons and big conflicts have actually encouraged investment.”

Not evenly distributed

China is far and away the largest single investor in clean energy, plunging $184 billion into the selector in 2022. Taken as a whole, the European Union invested $154 billion in clean energy in 2022.

The U.S. trailed both, with $97 billion invested last year. However, the amount spent by the U.S. in 2023 will likely be significantly larger thanks to passage of legislation last year containing funding for clean energy generation.

Rounding out the top five, Japan invested $28 billion in clean energy; India, $19 billion.

While rising investment in renewable power is good news in the climate-change fight, the IEA points out that it is heavily tilted toward large developed economies, with poorer countries and the Global South, in particular, seeing relatively little investment.

The entire continent of Africa, for example, saw just $10 billion in clean energy investment in 2022.

Electric vehicles and batteries

Two of the fastest-growing segments of the clean energy investment space are electric vehicles (EVs) and batteries that store power generated by clean energy technologies.

In 2023, the IEA estimates that $129 billion will be invested in electric vehicle technology, more than nine times the $14 billion invested just five years earlier. Battery storage will be the target of $37 billion in investment this year, over seven times the $5 billion invested in the sector in 2018.

In both segments, China is leading the way. In 2022, the entire world’s production capacity for lithium-ion batteries, the type most commonly used in EVs, stood at 1.57 terawatt hours. China accounted for 76% of that capacity. By 2030, according to the IEA, that capacity will have ballooned to 6.79 TWh, but China’s dominance will continue, accounting for 68% of the total.

Fossil fuels still growing

While renewables may be attracting more investment dollars than fossil fuels in 2023, the IEA reported that consumption of fossil fuels will continue to rise this year.

Meeting the net-zero goal in 2050 requires a slowing of investment in fossil fuels technology, according to the IEA. According to the report, more than $1 trillion will be invested in fossil fuels in 2023. To meet the agency’s benchmark for progress, that figure would have to be reduced by more than half by 2030.

Conversely, to remain on track, investment in clean energy must continue to grow. The agency estimates that to meet the benchmark for 2030, annual investment will have to grow from $1.7 trillion this year to $4.6 trillion in 2030.

To reach that goal, clean energy spending would have to grow by about 15% every year between now and 2030, somewhat higher than the 11.4% annual growth the sector has experienced over the past three years.

US, Microsoft Warn Chinese Hackers Attacking ‘Critical’ Infrastructure

State-sponsored Chinese hackers have infiltrated critical U.S. infrastructure networks, the United States, its Western allies and Microsoft said Wednesday while warning that similar espionage attacks could be occurring globally.  

Microsoft highlighted Guam, a U.S. territory in the Pacific Ocean with a vital military outpost, as one of the targets, but said “malicious” activity had also been detected elsewhere in the United States.  

The stealthy attack — carried out by a China-sponsored actor dubbed “Volt Typhoon” since mid-2021 — enabled long-term espionage and was likely aimed at hampering the United States if there was conflict in the region, it said.  

“Microsoft assesses with moderate confidence that this Volt Typhoon campaign is pursuing development of capabilities that could disrupt critical communications infrastructure between the United States and Asia region during future crises,” the statement said.  

“In this campaign, the affected organizations span the communications, manufacturing, utility, transportation, construction, maritime, government, information technology, and education sectors.”  

Microsoft’s statement coincided with an advisory released by U.S., Australian, Canadian, New Zealand and British authorities warning that the hacking was likely occurring globally.  

“This activity affects networks across US critical infrastructure sectors, and the authoring agencies believe the actor could apply the same techniques against these and other sectors worldwide,” they said.   

‘Living off the land’    

The United States and its allies said the activities involved “living off the land” tactics, which take advantage of built-in network tools to blend in with normal Windows systems.  

It warned that the hacking could then incorporate legitimate system administration commands that appear “benign”.  

Microsoft said the Volt Typhoon attack tried to blend into normal network activity by routing traffic through compromised small office and home office network equipment, including routers, firewalls and VPN hardware.  

“They have also been observed using custom versions of open-source tools,” Microsoft said.   

Microsoft and the security agencies released guidelines for organizations to try to detect and counter the hacking.  

“It’s what I would term a low and slow cyber activity,” said Alastair MacGibbon, chief strategy officer at Australia’s CyberCX and a former head of the Australian Cyber Security Centre.  

“This is someone wearing a camouflage vest and carrying a sniper rifle. You don’t see them, they’re not there,” he told AFP.  

“When you think about something that can really cause catastrophic harm, it is someone with intent who takes time to get into systems.”  

Once inside, the cyber attackers can steal information, he said. “But it also gives you the ability to carry out destructive acts at a later stage.”   

‘Highly sophisticated’   

A number of other governments had found similar activity since the Volt Typhoon alert was issued, said Robert Potter, co-founder of Australian cybersecurity firm Internet 2.0.  

“I am not sure how communications infrastructure would be at risk from these attacks because those networks are highly resilient and difficult to bring down for more than small intervals,” Potter told AFP.  

“However, the ongoing threat from China-based APT (advanced persistent threat) groups is real.”  

The director of the U.S. Cybersecurity and Infrastructure Security Agency, Jen Easterly, said China had been stealing intellectual property and data worldwide for years.  

“Today’s advisory, put out in conjunction with our U.S. and international partners, reflects how China is using highly sophisticated means to target our nation’s critical infrastructure,” Easterly said.  

China offered no immediate response to the allegations. But it routinely denies carrying out state-sponsored cyber-attacks.   

China in turn regularly accuses the United States of cyber espionage. 

Analysis: China Steps Up Response to US Chip Moves but Economic Reality Limits How Far

Beijing’s restrictions on American chipmaker Micron in retaliation to sweeping US chip curbs mark a major step up in its response to Washington’s pressure and could open the door for further measures in the geopolitical standoff, analysts say.   

But they warned President Xi Jinping’s ability to raise the stakes will be limited as he battles to re-energize the world’s number two economy while it struggles to recover from years of zero-Covid-imposed inertia.   

China on Sunday banned the use of Micron’s chips in critical infrastructure projects, which Beijing said posed “major network security risks” that could affect “national security”.   

Washington expressed “serious concerns” over the ruling that came just as leaders of the world’s seven richest nations (G7) signed a statement urging Beijing to end “economic coercion”.   

The move marked a significant shift in China’s response to US measures that have targeted the country’s technology sector, with Gary Ng, a senior economist at Natixis who specializes in the global chip trade, calling it “a landmark case”.   

He emphasized it was China’s first cybersecurity probe into a foreign company since tighter rules were announced in 2021, and a rare instance when the scope of such reviews was expanded to include national security concerns.   

“I wouldn’t be surprised if regulators used these reviews as a tool for retaliation in future” when faced with other geopolitical issues, he said.   

Emily Weinstein, a research fellow at Georgetown University specializing in the US-China tech rivalry, added that the definition of what fell under “critical information infrastructure” was very broad — ranging from online government services and defense to healthcare and water conservation.   

“Technically that could mean that anything qualifies,” she said.   

“China has consistently found national security or other reasons to create protectionist barriers” including mandatory technology transfer agreements, which require companies to store all data locally and requirements for foreign entities to have joint ventures with local partners in several sectors.   

‘Fuel to this fire’    

China began an investigation into Micron in late March, five months after the US unveiled sweeping curbs aimed at cutting off Beijing’s access to high-end chips, chipmaking equipment and software used to design semiconductors.   

“This is clearly part of a tit-for-tat retaliation for what Beijing perceives as Washington’s support of Micron and the US semiconductor industry,” said Paul Triolo, a China tech expert at consultancy Albright Stonebridge.   

Micron was singled out to make a political statement, Triolo said, adding that previous cybersecurity reviews of domestic firms, such as ride-hailing app Didi, focused on data instead of broadening the scope to include national security.   

Washington has banned Chinese chipmakers including Micron rival Yangtze Memory Technologies.   

The announcement came as the G7 nations said they would move to “de-risk, not decouple” from China, while Washington pressures allies to unite in restricting chip equipment exports to China. 

“The strong statement from G7 may have added fuel to this fire,” Ng said.   

However, Xi’s desire to combat what he sees as US hegemony will need to be balanced against the impact such measures would have on the economy.   

According to analysts, Micron — one of the US’s largest memory chipmakers — was an easy target because its semiconductors could be replaced by products from South Korea’s SK Hynix and Samsung.   

But restrictions against other US firms such as Intel and Qualcomm would be much harder to deal with because their technologies are used in consumer goods, including smartphones, that are made in the country and shipped abroad.    

Betting on South Korea     

“The approach of limiting US firms like Micron intends to send a signal that Beijing is willing to bear some pain as it contests with the US,” Ja Ian Chong, an associate professor of political science at the National University of Singapore, said.   

“But Beijing is quite careful to limit costs to itself,” he said, according to Bloomberg News.    

The ban will come down particularly hard on companies offering cloud services or data centers because they use hardware that requires high-end memory chips, according to Toby Zhu, an analyst at market research firm Canalys.   

He told AFP that Micron’s consumer goods products are “completely replaceable” by South Korean and domestic memory chip suppliers.   

And Triolo said Beijing was “betting on switching to South Korean suppliers”.  

However, the White House last month urged South Korean chipmakers not to export to China to fill any gap left by a ban on US semiconductor imports.   

The Netherlands and Japan have already announced their own restrictions on chip exports, following requests from Washington.   

Ng added: “China has been quite cautious not to retaliate too much… because Beijing can’t ramp up domestic capacity quickly to match any shortfall.” 

Microsoft Says China-Backed Hacker Targeted Critical Infrastructure in Guam, US

Microsoft Corp. said on Wednesday it had uncovered malicious activity by a state-sponsored actor based in China aimed at critical infrastructure organizations in Guam and the United States. 

Microsoft said it assessed with “moderate confidence” that this Volt Typhoon campaign “is pursuing development of capabilities that could disrupt critical communications infrastructure between the United States and Asia region during future crises.” 

Volt Typhoon has been active since mid-2021 and has targeted critical infrastructure organizations in Guam and elsewhere in the United States, the company said.

Guam is home to major U.S. military facilities, including the Andersen Air Force Base, which would be key to responding to any conflict in the Asia-Pacific region. 

Microsoft said it had notified targeted or compromised customers and provided them with information. 

The Chinese embassy in Washington did not immediately respond to a Reuters request for comment. 

Apple Inks Multi-Billion-Dollar Deal With Broadcom for U.S.-Made Chips

Apple Inc on Tuesday said it has entered a multi-billion-dollar deal with chipmaker Broadcom Inc. to use chips made in the United States. 

Under the multi-year deal, Broadcom will develop 5G radio frequency components with Apple that will be designed and built in several U.S. facilities, including Fort Collins, Colorado, where Broadcom has a major factory, Apple said. 

Broadcom were up 2.2% after the announcement, hitting a record high. The chipmaker is already a major supplier of wireless components to Apple, with about one fifth of its revenue coming from the iPhone maker in its two most recent fiscal year. 

Apple has been steadily diversifying its supply chains, building more products in India and Vietnam and saying that it will source chips from a new Taiwan Semiconductor Manufacturing Co plant under construction in Arizona. 

SEE ALSO: A related video by VOA correspondent Michelle Quinn

The two companies did not disclose the size of the deal, with Broadcom saying only that the new agreements require it to allocate Apple “sufficient manufacturing capacity and other resources to make these products.” 

Broadcom and Apple previously had a three-year, $15 billion agreement that Bernstein analyst Stacy Rasgon said was set to expire in June. He said the development was positive for Broadcom, despite the fact that the two firms did not give a time frame for how long the work will last. 

“It’s good that it removes that overhang,” Rasgon said. “Broadcom has existed over the years with a number of these long-term agreements with Apple. Sometimes they have them and sometimes they don’t.” 

Apple said it will tap Broadcom for what are known as film bulk acoustic resonator (FBAR) chips. The FBAR chips are part of a radio-frequency system that helps iPhones and other Apple devices connect to mobile data networks. 

“All of Apple’s products depend on technology engineered and built here in the United States, and we’ll continue to deepen our investments in the U.S. economy because we have an unshakable belief in America’s future,” Apple CEO Tim Cook said in a statement. 

Apple said it currently supports more than 1,100 jobs in Broadcom’s Fort Collins FBAR filter manufacturing facility. 

TikTok Sues to Stop Ban in US State of Montana

TikTok on Monday filed suit in U.S. federal court to stop the northern state of Montana from implementing an overall ban on the video-sharing app.

The unprecedented ban, set to start in 2024, violates the constitutionally protected right to free speech, TikTok argued in the suit.

“We believe our legal challenge will prevail based on an exceedingly strong set of precedents and facts,” a TikTok spokesperson told AFP.

Montana Governor Greg Gianforte signed the prohibition into law on May 17.

Gianforte said on Twitter that he endorsed the ban in order to “protect Montanans’ personal and private data from the Chinese Communist Party.”

“The state has enacted these extraordinary and unprecedented measures based on nothing more than unfounded speculation,” TikTok contended in its lawsuit.

Five TikTok users last week filed a suit of their own, calling on a federal court to overturn Montana’s ban on the app, arguing that it violates their free speech rights.

Both suits filed against Montana argue the state is trying to exercise national security power that only the federal government can wield and is violating free speech rights in the process.

TikTok called on the federal court to declare the Montana ban on its app unconstitutional and block the state from ever putting it into effect.

“Montana can no more ban its residents from viewing or posting to TikTok than it could ban the Wall Street Journal because of who owns it or the ideas it publishes,” the lawsuit filed by TikTok users contends.

The app is owned by Chinese firm ByteDance and is accused by a wide swath of U.S. politicians of being under the tutelage of the Chinese government and a tool of espionage by Beijing, something the company furiously denies.

Montana became the first U.S. state to ban TikTok, with the law set to take effect next year as debate escalates over the impact and security of the popular video app.

A matter of law

The prohibition will serve as a legal test for a national ban of the platform, something that lawmakers in Washington are increasingly calling for.

The Montana ban makes it a violation each time “a user accesses TikTok, is offered the ability to access TikTok, or is offered the ability to download TikTok.”

Each violation is punishable by a $10,000 fine every day it takes place.

Under the law, Apple and Google will have to remove TikTok from their app stores and companies will face possible daily fines.

The prohibition will take effect in 2024 but would be voided if TikTok is acquired by a company incorporated in a country not designated by the United States as a foreign adversary, the law reads.

The cases should move quickly in court, since they center on points of law that don’t require lots of evidence to be gathered, according to University of Richmond law professor Carl Tobias.

“There are very compelling constitutional arguments that favor the plaintiffs,” Tobias said.

“First is free speech, and second is if the ban is justified by national security, that is a matter for the federal government not any individual state.”

The law is the latest skirmish in duels between TikTok and many western governments, with the app already banned on government devices in the United States, Canada and several countries in Europe.

Early Warning Systems Send Disaster Deaths Plunging, UN Says

Weather-related disasters have surged over the past 50 years, causing swelling economic damage even as early warning systems have meant dramatically fewer deaths, the United Nations said Monday. 

Extreme weather, climate and water-related events caused 11,778 reported disasters between 1970 and 2021, new figures from the U.N.’s World Meteorological Organization (WMO) show. 

Those disasters killed just more than 2 million people and caused $4.3 trillion in economic losses. 

“The most vulnerable communities unfortunately bear the brunt of weather, climate and water-related hazards,” WMO chief Petteri Taalas said in a statement. 

The report found that more than 90% of reported deaths worldwide due to disasters in the 51-year period occurred in developing countries. 

But the agency also said improved early warning systems and coordinated disaster management had significantly reduced the human casualty toll. 

WMO pointed out in a report issued two years ago covering disaster-linked deaths and losses between 1970 and 2019, that at the beginning of the period the world was seeing more than 50,000 such deaths each year. 

By the 2010s, the disaster death toll had dropped below 20,000 annually. 

And in its update of that report, WMO said Monday that 22,608 disaster deaths were recorded globally in 2020 and 2021 combined. 

‘Early warnings save lives’ 

Cyclone Mocha, which wreaked havoc in Myanmar and Bangladesh last week, exemplifies this, Taalas said. 

Mocha “caused widespread devastation … impacting the poorest of the poor,” he said. 

But while Myanmar’s junta has put the death toll from the cyclone at 145, Taalas pointed out that during similar disasters in the past, “both Myanmar and Bangladesh suffered death tolls of tens and even hundreds of thousands of people.” 

“Thanks to early warnings and disaster management, these catastrophic mortality rates are now thankfully history. Early warnings save lives,” he added. 

The U.N. has launched a plan to ensure all nations are covered by disaster early warning systems by the end of 2027. 

Endorsing that plan figures among the top strategic priorities during a meeting of WMO’s decision-making body, the World Meteorological Congress, which opens Monday. 

To date, only half of countries have such systems in place. 

Surging economic losses 

WMO meanwhile warned that while deaths have plunged, the economic losses incurred when weather, climate and water extremes hit have soared. 

The agency previously recorded economic losses that increased sevenfold between 1970 and 2019, rising from $49 million per day during the first decade to $383 million per day in the final one. 

Wealthy countries have been hardest hit by far in monetary terms.  

The United States alone incurred $1.7 trillion in losses, or 39% of the economic losses globally from disasters since 1970. 

But while the dollar figures on losses suffered in poorer nations were not particularly high, they were far higher in relation to the size of their economies, WMO noted. 

Developed nations accounted for more than 60% of losses from weather, climate and water disasters, but in more than four-fifths of cases, the economic losses were equivalent to less than 0.1% of gross domestic product (GDP). 

And no disasters saw reported economic losses greater than 3.5% of the respective GDPs. 

By comparison, in 7% of the disasters that hit the world’s least developed countries, losses equivalent to more than 5% of their GDP were reported, with several disasters causing losses equivalent to nearly a third of GDP. 

And for small island developing states, one-fifth of disasters saw economic losses of more than 5% of GDP, with some causing economic losses of 100 percent. 

SpaceX Sends Saudi Astronauts, Including Nation’s 1st Woman in Space, to International Space Station

Saudi Arabia’s first astronauts in decades rocketed toward the International Space Station on a chartered multimillion-dollar flight Sunday. 

SpaceX launched the ticket-holding crew, led by a retired NASA astronaut now working for the company that arranged the trip from Kennedy Space Center. Also on board: a U.S. businessman who now owns a sports car racing team. 

The four should reach the space station in their capsule Monday morning; they’ll spend just more than a week there before returning home with a splashdown off the Florida coast. 

Sponsored by the Saudi Arabian government, Rayyanah Barnawi, a stem cell researcher, became the first woman from the kingdom to go to space. She was joined by Ali al-Qarni, a fighter pilot with the Royal Saudi Air Force. 

They’re the first from their country to ride a rocket since a Saudi prince launched aboard shuttle Discovery in 1985. In a quirk of timing, they’ll be greeted at the station by an astronaut from the United Arab Emirates. 

“Hello from outer space! It feels amazing to be viewing Earth from this capsule,” Barnawi said after settling into orbit. 

Added al-Qarni: “As I look outside into space, I can’t help but think this is just the beginning of a great journey for all of us.” 

Rounding out the visiting crew: Knoxville, Tennessee’s John Shoffner, former driver and owner of a sports car racing team that competes in Europe, and chaperone Peggy Whitson, the station’s first female commander who holds the U.S. record for most accumulated time in space: 665 days and counting. 

“It was a phenomenal ride,” Whitson said after reaching orbit. Her crewmates clapped their hands in joy. 

It’s the second private flight to the space station organized by Houston-based Axiom Space. The first was last year by three businessmen, with another retired NASA astronaut. The company plans to start adding its own rooms to the station in another few years, eventually removing them to form a stand-alone outpost available for hire. 

Axiom won’t say how much Shoffner and Saudi Arabia are paying for the planned 10-day mission. The company had previously cited a ticket price of $55 million each. 

NASA’s latest price list shows per-person, per-day charges of $2,000 for food and up to $1,500 for sleeping bags and other gear. Need to get your stuff to the space station in advance? Figure roughly $10,000 per pound ($20,000 per kilogram), the same fee for trashing it afterward. Need your items back intact? Double the price. 

At least the email and video links are free. 

The guests will have access to most of the station as they conduct experiments, photograph Earth and chat with schoolchildren back home, demonstrating how kites fly in space when attached to a fan. 

After decades of shunning space tourism, NASA now embraces it with two private missions planned a year. The Russian Space Agency has been doing it, off and on, for decades. 

“Our job is to expand what we do in low-Earth orbit across the globe,” said NASA’s space station program manager Joel Montalbano. 

SpaceX’s first-stage booster landed back at Cape Canaveral eight minutes after liftoff — a special treat for the launch day crowd, which included about 60 Saudis. 

“It was a very, very exciting day,” said Axiom’s Matt Ondler. 

SpaceX Launching Saudi Astronauts on Private Flight to Space Station

SpaceX’s next private flight to the International Space Station awaited takeoff Sunday, weather and rocket permitting.

The passengers include Saudi Arabia’s first astronauts in decades, as well as a Tennessee businessman who started his own sports car racing team. They’ll be led by a retired NASA astronaut who now works for the company that arranged the 10-day trip.

It’s the second charter flight organized by Houston-based Axiom Space. The company would not say how much the latest tickets cost; it previously cited per-seat prices of $55 million.

With its Falcon rocket already on the pad, SpaceX targeted a liftoff late Sunday afternoon from NASA’s Kennedy Space Center. It’s the same spot where Saudi Arabia’s first astronaut, a prince, soared in 1985.

Representing the Saudi Arabian government this time are Rayyanah Barnawi, a stem cell researcher set to become the kingdom’s first woman in space, and Royal Saudi Air Force fighter pilot Ali al-Qarni.

Rounding out the crew: John Shoffner, the racecar buff; and Peggy Whitson, who holds the U.S. record for the most accumulated time in space at 665 days.

G7 Calls for ‘Responsible’ Use of Generative AI

The world must urgently assess the impact of generative artificial intelligence, G7 leaders said Saturday, announcing they will launch discussions this year on “responsible” use of the technology.

A working group will be set up to tackle issues from copyright to disinformation, the seven leading economies said in a final communique released during a summit in Hiroshima, Japan.

Text generation tools such as ChatGPT, image creators and music composed using AI have sparked delight, alarm and legal battles as creators accuse them of scraping material without permission.

Governments worldwide are under pressure to move quickly to mitigate the risks, with the chief executive of ChatGPT’s OpenAI telling U.S. lawmakers this week that regulating AI was essential.

“We recognise the need to immediately take stock of the opportunities and challenges of generative AI, which is increasingly prominent across countries and sectors,” the G7 statement said.

“We task relevant ministers to establish the Hiroshima AI process, through a G7 working group, in an inclusive manner … for discussions on generative AI by the end of this year,” it said.

“These discussions could include topics such as governance, safeguard of intellectual property rights including copyrights, promotion of transparency, response to foreign information manipulation, including disinformation, and responsible utilisation of these technologies.”

The new working group will be organized in cooperation with the OECD group of developed countries and the Global Partnership on Artificial Intelligence (GPAI), the statement added.

On Tuesday, OpenAI CEO Sam Altman testified before a U.S. Senate panel and urged Congress to impose new rules on big tech.

He insisted that in time, generative AI developed by his company would one day “address some of humanity’s biggest challenges, like climate change and curing cancer.”

However, “we think that regulatory intervention by governments will be critical to mitigate the risks of increasingly powerful models,” he said.

European Parliament lawmakers this month also took a first step towards EU-wide regulation of ChatGPT and other AI systems.

The text is to be put to the full parliament next month for adoption before negotiations with EU member states on a final law.

“While rapid technological change has been strengthening societies and economies, the international governance of new digital technologies has not necessarily kept pace,” the G7 said.

For AI and other emerging technologies including immersive metaverses, “the governance of the digital economy should continue to be updated in line with our shared democratic values,” the group said.

Among others, these values include fairness, respect for privacy and “protection from online harassment, hate and abuse,” among others, it added.

US Supreme Court Lets Twitter Off Hook in Terror Lawsuit Over Istanbul Massacre

The U.S. Supreme Court on Thursday refused to clear a path for victims of attacks by militant organizations to hold social media companies liable under a federal anti-terrorism law for failing to prevent the groups from using their platforms, handing a victory to Twitter.

The justices, in a unanimous decision, reversed a lower court’s ruling that had revived a lawsuit against Twitter by the American relatives of Nawras Alassaf, a Jordanian man killed in a 2017 attack during New Year’s celebration in a Istanbul nightclub claimed by the Islamic State militant group. 

The case was one of two that the Supreme Court weighed in its current term aimed at holding internet companies accountable for contentious content posted by users – an issue of growing concern for the public and U.S. lawmakers. 

The justices on Thursday, in a similar case against Google-owned YouTube, part of Alphabet Inc, sidestepped ruling on a bid to narrow a federal law protecting internet companies from lawsuits for content posted by their users — called Section 230 of the Communications Decency Act. 

That case involved a lawsuit by the family of Nohemi Gonzalez, a 23-year-old college student from California who was fatally shot in an Islamic State attack in Paris in 2015, of a lower court’s decision to throw out their lawsuit. 

The Istanbul massacre on Jan. 1, 2017, killed Alassaf and 38 others. His relatives accused Twitter of aiding and abetting the Islamic State, which claimed responsibility for the attack, by failing to police the platform for the group’s accounts or posts in violation of a federal law called the Anti-Terrorism Act that enables Americans to recover damages related to “an act of international terrorism.” 

Twitter and its backers had said that allowing lawsuits like this would threaten internet companies with liability for providing widely available services to billions of users because some of them may be members of militant groups, even as the platforms regularly enforce policies against terrorism-related content. 

The case hinged on whether the family’s claims sufficiently alleged that the company knowingly provided “substantial assistance” to an “act of international terrorism” that would allow the relatives to maintain their suit and seek damages under the anti-terrorism law.

After a judge dismissed the lawsuit, the San Francisco-based 9th U.S. Circuit Court of Appeals in 2021 allowed it to proceed, concluding that Twitter had refused to take “meaningful steps” to prevent Islamic State’s use of the platform. 

President Joe Biden’s administration supported Twitter, saying the Anti-Terrorism Act imposes liability for assisting a terrorist act and not for “providing generalized aid to a foreign terrorist organization” with no causal link to the act at issue. 

In the Twitter case, the 9th Circuit did not consider whether Section 230 barred the family’s lawsuit. Google and Meta’s Facebook, also defendants, did not formally join Twitter’s appeal.

Islamic State called the Istanbul attack revenge for Turkish military involvement in Syria. The main suspect, Abdulkadir Masharipov, an Uzbek national, was later captured by police.

Twitter in court papers has said that it has terminated more than 1.7 million accounts for violating rules against “threatening or promoting terrorism.” 

US Invests in Alternative Solar Tech, More Solar for Renters

The Biden administration announced more than $80 million in funding Thursday in a push to produce more solar panels in the U.S., make solar energy available to more people, and pursue superior alternatives to the ubiquitous sparkly panels made with silicon.

The initiative, spearheaded by the U.S. Department of Energy (DOE) and known as Community solar, encompasses a variety of arrangements where renters and people who don’t control their rooftops can still get their electricity from solar power. Two weeks ago, Vice President Kamala Harris announced what the administration said was the largest community solar effort ever in the United States.

Now it is set to spend $52 million on 19 solar projects across a dozen states, including $10 million from the infrastructure law, as well as $30 million on technologies that will help integrate solar electricity into the grid.

The DOE also selected 25 teams to participate in a $10 million competition designed to fast-track the efforts of solar developers working on community solar projects.

The Inflation Reduction Act already offers incentives to build large solar generation projects, such as renewable energy tax credits. But Ali Zaidi, White House national climate adviser, said the new money focuses on meeting the nation’s climate goals in a way that benefits more communities.

“It’s lifting up our workers and our communities. And that’s, I think, what really excites us about this work,” Zaidi said. “It’s a chance not just to tackle the climate crisis, but to bring economic opportunity to every zip code of America.”

The investments will help people save on their electricity bills and make the electricity grid more reliable, secure, and resilient in the face of a changing climate, said Becca Jones-Albertus, director of the energy department’s Solar Energy Technologies Office.

Jones-Albertus said she’s particularly excited about the support for community solar projects, since half of Americans don’t live in a situation where they can buy their own solar and put in on the roof.

Michael Jung, executive director of the ICF Climate Center agreed. “Community solar can help address equity concerns, as most current rooftop solar panels benefit owners of single-family homes,” he said.

In typical community solar projects, households can invest in or subscribe to part of a larger solar array offsite. “What we’re doing here is trying to unlock the community solar market,” Jones-Albertus said.

The U.S. has 5.3 gigawatts of installed community solar capacity currently, according to the latest estimates. The goal is that by 2025, five million households will have access to it — about three times as many as today — saving $1 billion on their electricity bills, according to Jones-Albertus.

The new funding also highlights investment in a next generation of solar technologies, intended to wring more electricity out of the same amount of solar panels. Currently only about 20% of the sun’s energy is converted to electricity in crystalline silicon solar cells, which is what most solar panels are made of. There has long been hope for higher efficiency, and today’s announcement puts some money towards developing two alternatives: perovskite and cadmium telluride (CdTe) solar cells. Zaidi said this will allow the U.S. to be “the innovation engine that tackles the climate crisis.”

Joshua Rhodes, a scientist at the University of Texas at Austin said the investment in perovskites is good news. They can be produced more cheaply than silicon and are far more tolerant of defects, he said. They can also be built into textured and curved surfaces, which opens up more applications for their use than traditional rigid panels. Most silicon is produced in China and Russia, Rhodes pointed out.

Cadmium telluride solar can be made quickly and at a low cost, but further research is needed to improve how efficient the material is at converting sunlight to electrons.

Cadmium is also toxic and people shouldn’t be exposed to it. Jones-Albertus said that in cadmium telluride solar technology, the compound is encapsulated in glass and additional protective layers.

The new funds will also help recycle solar panels and reuse rare earth elements and materials. “One of the most important ways we can make sure CdTe remains in a safe compound form is ensuring that all solar panels made in the U.S. can be reused or recycled at the end of their life cycle,” Jones-Albertus explained.

Recycling solar panels also reduces the need for mining, which damages landscapes and uses a lot of energy, in part to operate the heavy machinery. Eight of the projects in Thursday’s announcement focus on improving solar panel recycling, for a total of about $10 million.

Clean energy is a fit for every state in the country, the administration said. One solar project in Shungnak, Alaska, was able to eliminate the need to keep making electricity by burning diesel fuel, a method sometimes used in remote communities that is not healthy for people and contributes to climate change.

“Alaska is not a place that folks often think of when they think about solar, but this energy can be an economic and affordable resource in all parts of the country,” said Jones-Albertus.

Did the AI-Generated Drake Song Breach Copyright?

A viral AI-generated song imitating Drake and The Weeknd was pulled from streaming services this week, but did it breach copyright as claimed by record label Universal?

Created by someone called @ghostwriter, Heart On My Sleeve racked up millions of listens before Universal Music Group asked for its removal from Spotify, Apple Music and other platforms.

However, Andres Guadamuz, who teaches intellectual property law at Britain’s University of Sussex, is not convinced that the song breached copyright.

As similar cases look set to multiply — with an uncanny AI replication of Liam Gallagher from Oasis causing buzz — he spoke to AFP about some of the issues being raised.

Did the song breach copyright?

The underlying music on Heart On My Sleeve was new, only the sound of the voice was familiar, “and you can’t copyright the sound of someone’s voice,” Guadamuz said.

Perhaps the furor around AI impersonators may lead to copyright being expanded to include voice, rather than just melody, lyrics and other created elements, “but that would be problematic,” Guadamuz added.

“What you’re protecting with copyright is the expression of an idea, and voice isn’t really that,” he said. 

He said Universal probably claimed copyright infringement because it is the simplest route to removing content, with established procedures in place with streaming platforms.

Were other rights breached?

An AI-generated impersonator may be breaching other laws.

If an artist has a distinctive voice or image, this is potentially protected under “publicity rights” in the United States or similar image rights in other countries.

Bette Midler won a case against Ford in 1988 for using an impersonator of her in an ad. Tom Waits won a similar case in 1993 against the Frito-Lays potato chips company.

The problem, said Guadamuz, is that enforcement of these rights is “very hit and miss” and taken much more seriously in some countries than others.

And streaming platforms currently lack straightforward mechanisms for removing content seen as breaching image rights.

What comes next?

The big upcoming legal fight is over how AI programs are trained.

It may be argued that inputting existing Drake and Weeknd songs to train an AI program may be a breach of copyright, but Guadamuz said this issue was far from settled.

“You need to copy the music in order to train the AI and so that unauthorized copying could potentially be copyright infringement,” he said.

“But defendants will say it’s fair use. They are using it to train a machine, teaching it to listen to music, and then removing the copies,” he said. “Ultimately, we will have to wait and see for the case law to be decided.”

But it is almost certainly too late to stem the flood.

“Bands are going to have to decide whether they want to pursue this in court, and copyright cases are expensive,” said Guadamuz.

“Some artists may lean into the technology and start using it themselves, especially if they start losing their voice.” 

US-China Competition in Tech Expands to AI Regulations

Competition between the U.S. and China in artificial intelligence has expanded into a race to design and implement comprehensive AI regulations.

The efforts to come up with rules to ensure AI’s trustworthiness, safety and transparency come at a time when governments around the world are exploring the impact of the technology on national security and education.

ChatGPT, a chatbot that mimics human conversation, has received massive attention since its debut in November. Its ability to give sophisticated answers to complex questions with a language fluency comparable to that of humans has caught the world by surprise. Yet its many flaws, including its ostensibly coherent responses laden with misleading information and apparent bias, have prompted tech leaders in the U.S. to sound the alarm.

“What happens when something vastly smarter than the smartest person comes along in silicon form? It’s very difficult to predict what will happen in that circumstance,” said Tesla Chief Executive Officer Elon Musk in an interview with Fox News. He warned that artificial intelligence could lead to “civilization destruction” without regulations in place.

Google CEO Sundar Pichai echoed that sentiment. “Over time there has to be regulation. There have to be consequences for creating deep fake videos which cause harm to society,” Pichai said in an interview with CBS’s “60 Minutes” program.

Jessica Brandt, policy director for the Artificial Intelligence and Emerging Technology Initiative at the Brookings Institution, told VOA Mandarin, “Business leaders understand that regulators will be watching this space closely, and they have an interest in shaping the approaches regulators will take.”

US grapples with regulations

AI regulation is still nascent in the U.S. Last year, the White House released voluntary guidance through a Blueprint for an AI Bill of Rights to help ensure users’ rights are protected as technology companies design and develop AI systems.

At a meeting of the President’s Council of Advisors on Science and Technology this month, President Joe Biden expressed concern about the potential dangers associated with AI and underscored that companies had a responsibility to ensure their products were safe before making them public.

On April 11, the National Telecommunications and Information Administration, a Commerce Department agency that advises the White House on telecommunications and information policy, began to seek comment and public input with the aim of crafting a report on AI accountability.

The U.S. government is trying to find the right balance to regulate the industry without stifling innovation “in part because the U.S. having innovative leadership globally is a selling point for the United States’ hard and soft power,” said Johanna Costigan, a junior fellow at the Asia Society Policy Institute’s Center for China Analysis.

Brandt, with Brookings, said, “The challenge for liberal democracies is to ensure that AI is developed and deployed responsibly, while also supporting a vibrant innovation ecosystem that can attract talent and investment.”

Meanwhile, other Western countries have also started to work on regulating the emerging technology.

The U.K. government published its AI regulatory framework in March. Also last month, Italy temporarily blocked ChatGPT in the wake of a data breach, and the German commissioner for data protection said his country could follow suit.

The European Union stated it’s pushing for an AI strategy aimed at making Europe a world-class hub for AI that ensures AI is human-centric and trustworthy, and it hopes to lead the world in AI standards.

Cyber regulations in China

In contrast to the U.S., the Chinese government has already implemented regulations aimed at tech sectors related to AI. In the past few years, Beijing has introduced several major data protection laws to limit the power of tech companies and to protect consumers.

The Cybersecurity Law enacted in 2017 requires that data must be stored within China and operators must submit to government-conducted security checks. The Data Security Law enacted in 2021 sets a comprehensive legal framework for processing personal information when doing business in China. The Personal Information Protection Law established in the same year gives Chinese consumers the right to access, correct and delete their personal data gathered by businesses. Costigan, with the Asia Society, said these laws have laid the groundwork for future tech regulations.

In March 2022, China began to implement a regulation that governs the way technology companies can use recommendation algorithms. The Cyberspace Administration of China (CAC) now supervises the process of using big data to analyze user preferences and companies’ ability to push information to users.

On April 11, the CAC unveiled a draft for managing generative artificial intelligence services similar to ChatGPT, in an effort to mitigate the dangers of the new technology.

Costigan said the goal of the proposed generative AI regulation could be seen in Article 4 of the draft, which states that content generated by future AI products must reflect the country’s “core socialist values” and not encourage subversion of state power.

“Maintaining social stability is a key consideration,” she said. “The new draft regulation does some good and is unambiguously in line with [President] Xi Jinping’s desire to ensure that individuals, companies or organizations cannot use emerging AI applications to challenge his rule.”

Michael Caster, the Asia digital program manager at Article 19, a London-based rights organization, told VOA, “The language, especially at Article 4, is clearly about maintaining the state’s power of censorship and surveillance.

“All global policymakers should be clearly aware that while China may be attempting to set standards on emerging technology, their approach to legislation and regulation has always been to preserve the power of the party.”

The future of cyber regulations

As strategies for cyber and AI regulations evolve, how they develop may largely depend on each country’s way of governance and reasons for creating standards. Analysts say there will also be intrinsic hurdles linked to coming up with consensus.

“Ethical principles can be hard to implement consistently, since context matters and there are countless potential scenarios at play,” Brandt told VOA. “They can be hard to enforce, too. Who would take on that role? How? And of course, before you can implement or enforce a set of principles, you need broad agreement on what they are.”

Observers said the international community would face challenges as it creates standards aimed at making AI technology ethical and safe.