The Great Freight-Train Heists of the 21st Century

Cargo theft from freight trains in the Los Angeles area has surged, with detectives estimating over 90 containers being opened daily and that theft on their freight trains in the Union Pacific area was up some 160 percent from the previous year. Nationally, cargo theft neared $1 billion in losses last year. Companies decline comment but California’s governor publicly questioned the widespread railroad theft. Most arrested were not organized; many were homeless people nearby opportunistically taking fallen boxes off tracks. Theft stems largely from e-commerce boom that reshaped freight shipping to meet consumer demand, opening vulnerabilities. Railroad police forces and online retailers aim to combat this but concede difficulty tracking stolen goods resold anonymously online. Some products stolen from containers even get resold back on Amazon. The New York Times Magazine: Sometimes products stolen out of Amazon containers are resold by third-party sellers back on Amazon in a kind of strange ouroboros, in which the snakehead of capitalism hungrily swallows its piracy tail. Last June, California’s attorney general created what was touted as a first-of-its-kind agreement among online retailers that committed them to doing a better job tracking, reporting and preventing stolen items from being resold on their platforms. While declining to comment on specific cases, a spokesperson for Amazon told me that the company is working to improve the process of vetting sellers: The number of “bad actor attempts” to create new selling accounts on Amazon decreased to 800,000 in 2022 from six million in 2020.

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PlayStation Has Blocked Hardware Cheating Device Cronus Zen, Others May Follow

FTC Launches Inquiry Into AI Deals by Tech Giants

The Federal Trade Commission launched an inquiry (non-paywalled link) on Thursday into the multibillion-dollar investments by Microsoft, Amazon and Google in the artificial intelligence start-ups OpenAI and Anthropic, broadening the regulator’s efforts to corral the power the tech giants can have over A.I. The New York Times: These deals have allowed the big companies to form deep ties with their smaller rivals while dodging most government scrutiny. Microsoft has invested billions of dollars in OpenAI, the maker of ChatGPT, while Amazon and Google have each committed billions of dollars to Anthropic, another leading A.I. start-up.

Regulators have typically focused on bringing antitrust lawsuits against deals where the tech giants are buying rivals outright or using acquisitions to expand into new businesses, leading to increased prices and other harm, and have not regularly challenged stakes that the companies buy in start-ups. The F.T.C.’s inquiry will examine how these investment deals alter the competitive landscape and could inform any investigations by federal antitrust regulators into whether the deals have broken laws.

The F.T.C. said it would ask Microsoft, OpenAI, Amazon, Google and Anthropic to describe their influence over their partners and how they worked together to make decisions. It also said it would demand that they provide any internal documents that could shed light on the deals and their potential impact on competition.

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Cruise Says Hostility Toward Regulators Led To Grounding of Its Autonomous Cars

Cruise, the driverless car subsidiary of General Motors, said in a report on Thursday that an adversarial approach taken (non-paywalled link) by its top executives toward regulators had led to a cascade of events that ended with a nationwide suspension of Cruise’s fleet. From a report: The roughly 100-page report was compiled by a law firm that Cruise hired to investigate whether its executives had misled California regulators about an October crash in San Francisco in which a Cruise vehicle dragged a woman 20 feet. The investigation found that while the executives had not intentionally misled state officials, they had failed to explain key details about the incident. In meetings with regulators, the executives let a video of the crash “speak for itself” rather than fully explain how one of its vehicles severely injured the pedestrian. The executives later fixated on protecting Cruise’s reputation rather than giving a full account of the accident to the public and media, according to the report, which was written by the Quinn Emanuel Urquhart & Sullivan law firm.

The company said that the Justice Department and the Securities and Exchange Commission were investigating the incident, as well as state agencies and the National Highway Traffic Safety Administration. The report is central to Cruise’s efforts to regain the public’s trust and eventually restart its business. Cruise has been largely shut down since October, when the California Department of Motor Vehicles suspended its license to operate because its vehicles were unsafe. It responded by pulling its driverless cars off the road across the country, laying off a quarter of its staff and replacing Kyle Vogt, its co-founder and chief executive, who resigned in November, with new leaders.

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OpenAI Quietly Scrapped a Promise To Disclose Key Documents To the Public

From its founding, OpenAI said its governing documents were available to the public. When WIRED requested copies after the company’s boardroom drama, it declined to provide them. Wired: Wealthy tech entrepreneurs including Elon Musk launched OpenAI in 2015 as a nonprofit research lab that they said would involve society and the public in the development of powerful AI, unlike Google and other giant tech companies working behind closed doors. In line with that spirit, OpenAI’s reports to US tax authorities have from its founding said that any member of the public can review copies of its governing documents, financial statements, and conflict of interest rules. But when WIRED requested those records last month, OpenAI said its policy had changed, and the company provided only a narrow financial statement that omitted the majority of its operations.

“We provide financial statements when requested,” company spokesperson Niko Felix says. “OpenAI aligns our practices with industry standards, and since 2022 that includes not publicly distributing additional internal documents.” OpenAI’s abandonment of the long-standing transparency pledge obscures information that could shed light on the recent near-implosion of a company with crucial influence over the future of AI and could help outsiders understand its vulnerabilities. In November, OpenAI’s board fired CEO Sam Altman, implying in a statement that he was untrustworthy and had endangered its mission to ensure AI “benefits all humanity.” An employee and investor revolt soon forced the board to reinstate Altman and eject most of its own members, with an overhauled slate of directors vowing to review the crisis and enact structural changes to win back the trust of stakeholders.

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Nvidia’s RTX GPUs Can Now Upgrade SDR Content To HDR Using AI

Doomsday Clock Stays at 90 Seconds To Midnight

Biden Aims To Stop Countries From Exploiting Americans’ Data for Blackmail, Espionage

The Biden administration is preparing an executive order that seeks to prevent foreign adversaries from accessing troves of highly sensitive personal data about Americans and people connected to the US government, Bloomberg News reported, citing documents. From the report: The administration plans to soon unveil the new executive order, which will direct the US Attorney General and Department of Homeland Security to issue new restrictions on transactions involving data that, if obtained, could threaten national security, according to three people familiar with the matter, who asked not to be named as the details are still private.

The draft order focuses on ways that foreign adversaries are gaining access to Americans’ “highly sensitive” personal data — from genetic information to location — through legal means. That includes obtaining information through intermediaries, such as data brokers, third-party vendor agreements, employment agreements or investment agreements, according to a draft of the proposed order. In addition, organizations owned, controlled or operated by “countries of concern” are often obligated to hand such data over to the government when asked.

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Netflix is Going To Take Away Its Cheapest Ad-Free Plan

Although Netflix no longer allows new or returning members to sign up for the ad-free Basic subscription that costs $11.99 per month, company executives told investors while reporting its earnings results today that it’s retiring the plan in some countries where ad-supported plans are available. It’s starting with Canada and the UK in the second quarter of this year. From a report: That leaves subscribers with Netflix’s $15.49 per month option as Netflix’s cheapest ad-free plan. Going from $11.99 to $15.49 per month is a pretty big jump, and means there’s really no middle ground for ad-free plans. Otherwise, subscribers will have to pay $6.99 per month for its ad-supported basic plan or $22.99 per month for the Premium tier. Netflix stopped letting new subscribers sign up for its Basic plan in Canada last year before rolling out the change to the US and UK.

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