Spirit Airlines has warned investors that it may go out of business, just months after exiting bankruptcy. From a report: In a quarterly report filed with the Securities and Exchange Commission on Monday, it said there was "substantial doubt" over its "ability to continue as a going concern within 12 months." The budget airline said it was harder to make money because of weak demand for domestic leisure travel and "elevated domestic capacity," meaning increased competition on such routes. Spirit reported a net loss of $245.8 million for the second quarter of 2025, up from a $192.9 million loss for the second quarter of 2024.

An anonymous reader quotes a report from Seeking Alpha: General Motors is reviving its autonomous driving program, tapping former Cruise employees to help design a driverless car for consumers. Under the helm of former Tesla autopilot head Sterling Anderson, GM is moving ahead with a driverless, eyes-free, vehicle with the ultimate goal of developing a car without a person at the wheel, according to a meeting between Anderson and employees revealed to Bloomberg. Anderson reportedly said plans include rehiring Cruise employees, and adding staff at GM's Mountain View, California office.

Currently, LiDAR-equipped vehicles are collecting data on public roads for the development of GM's driverless vehicles, GM spokesperson Chaiti Sen told Bloomberg, with the goal of building simulation models that will guide development. GM (GM) shuttered its majority-owned, money-losing, Cruise robotaxi business late last year and let go of ~1,000 Cruise employees, after a pedestrian accident led to the grounding of its entire fleet and regulatory scrutiny. At the time, the company said it was pivoting away from robotaxis to the development of hands-free driving for personal vehicles.

In an unusual arrangement to secure export licenses, Nvidia and AMD have agreed to give the U.S. government 15% of revenue from certain chip sales to China. The Associated Press reports: The Trump administration halted the sale of advanced computer chips to China in April over national security concerns, but Nvidia and AMD revealed in July that Washington would allow them to resume sales of the H20 and MI308 chips, which are used in artificial intelligence development. President Trump confirmed the terms of the unusual arrangement in a Monday press conference while noting that he originally wanted 20% of the sales revenue when Nvidia asked to sell the "obsolete" H20 chip to China. The president credited Nvidia CEO Jensen Huang for negotiating him down to 15%. "So we negotiated a little deal. So he's selling a essentially old chip," Trump said.

Nvidia did not comment about the specific details of the agreement or its quid pro quo nature, but said they would adhere to the export rules laid out by the administration. "We follow rules the U.S. government sets for our participation in worldwide markets. While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide," Nvidia wrote in a statement to the AP. "America cannot repeat 5G and lose telecommunication leadership. America's AI tech stack can be the world's standard if we race."

An anonymous reader quotes a report from the Detroit Free Press: Ford is announcing the creation of a new electric vehicle production system and a new EV platform that will allow the automaker to more efficiently bring several lower-cost EVs to market, the first of which will be a midsize, four-door electric pickup that seats five, to launch in 2027. That pickup, which is expected to start around $30,000, will be assembled at Ford's Louisville Assembly Plant for U.S. and export markets. The Dearborn-based automaker said it will invest $2 billion to retool the Louisville plant starting later this year. [...] Ford's investment in Louisville Assembly is in addition to Ford's previously announced $3 billion commitment for BlueOval Battery Park in Marshall, Michigan, where Ford will make the prismatic LFP batteries, starting next year, for the midsize electric pickup. Together, the nearly $5 billion investments mean Ford expects to create or secure nearly 4,000 direct jobs while strengthening the domestic supply chain with dozens of new U.S.-based suppliers.

Ford executives and Kentucky officials also introduced on Monday, Aug. 11, the new Ford Universal EV Production System, which they said will simplify production and ease operations for workers. Ford leaders also announced the creation of the Ford Universal Electric Vehicle Platform, which will enable the development of "a family of affordable electric vehicles produced at scale." The vehicles will be software-defined with over-the-air updates to keep improving the vehicles over time. "We took a radical approach to solve a very hard challenge: Create affordable vehicles that are breakthrough in every way that matters design, technology, performance, space and cost of ownership and do it with American workers," Ford CEO Jim Farley said in a statement. "Nobody wants to see another good college try by a Detroit automaker to make an affordable vehicle that ends up with idled plants, layoffs and uncertainty."

Farley has teased this announcement since Ford's second-quarter earnings when he said Ford would have a "Model-T moment" on Aug. 11. He's referring to the classic vehicle that helped turn Ford into a mass market automaker and perfect the assembly line process. At that time, Farley said it was critical that Ford unveil an EV strategy that would position it to make money selling the electric cars and effectively compete against the Chinese, who are known for making high-quality, desirable and affordable EVs. "So, this has to be a good business," Farley said of Ford's investments in the new process and platform. "From Day 1, we knew there was no incremental path to success. We empowered a tiny skunkworks team three time zones away from Detroit. We reinvented the line. And we are on a path to be the first automaker to make prismatic LFP batteries in the U.S. We will not rely on imports." Ford says its new Universal Electric Vehicle Platform "reduces parts by 20% versus a typical vehicle, with 25% fewer fasteners, 40% fewer workstations dock-to-dock in the plant and 15% faster assembly time." The new EV pickup built using this platform is targeting a "starting MSRP at about $30,000, roughly the same as the Model T when adjusted for inflation," adds Farley.

He shared additional details in an interview with Wired, such as how the automaker hired Tesla veterans Doug Field (who also helped lead Apple's now-defunct EV project) and Alan Clarke. "Turns out, Doug and Alan and the team built a propulsion system that was like Apollo 13, managed down to the watt so that our battery could be so much smaller than BYD's," said Farley.

In 2020 a YouTube video used video footage of Steve Wozniak in a scam to steal bitcoin. "Some people said they lost their life savings," Wozniak tells CBS News, explaining why he sued YouTube in 2020 — and where his case stands now: Wozniak's lawsuit against YouTube has been tied up in court now for five years, stalled by federal legislation known as Section 230. Attorney Brian Danitz said, "Section 230 is a very broad statute that limits, if not totally, the ability to bring any kind of case against these social media platforms."

"It says that anything gets posted, they have no liability at all," said Wozniak. "It's totally absolute."

Google responded to our inquiry about Wozniak's lawsuit with a statement from José Castañeda, of Google Policy Communications: "We take abuse of our platform seriously and take action quickly when we detect violations ... we have tools for users to report channels that are impersonating their likeness or business." [Steve's wife] Janet Wozniak, however, says YouTube did nothing, even though she reported the scam video multiple times: "You know, 'Please take this down. This is an obvious mistake. This is fraud. You're YouTube, you're helping dupe people out of their money,'" she said.

"They wouldn't," said Steve...
Today is Steve Wozniak's 75th birthday. (You can watch the interview here.) And the article includes this interesting detail about Woz's life today: Wozniak sold most of his Apple stock in the mid-1980s when he left the company. Today, though, he still gets a small paycheck from Apple for making speeches and representing the company. He says he's proud to see Apple become a trillion-dollar company. "Apple is still the best," he said. "And when Apple does things I don't like, and some of the closeness I wish it were more open, I'll speak out about it. Nobody buys my voice!"

I asked, "Apple listen to you when you speak out?"

"No," Wozniak smiled. "Oh, no. Oh, no."
Wozniak answered questions from Slashdot readers in 2000 and again in 2012.

And he dropped by Slashdot on his birthday to leave this comment for Slashdot's readers...

Wedneday Beyond Meat "missed Wall Street estimates for second-quarter revenue," reports Reuters. "Consumers' growing concerns about processed foods are severely diminishing the appeal of Beyond Meat's product line, causing retailers and quick service restaurants to pull back sharply on orders," Rachel Wolff, analyst at Emarketer, said.

Retail sales of refrigerated plant-based meat alternative products in the U.S. have fallen 17.2% so far this year, and frozen plant-based meat alternatives have fallen 8.1%, according to data from SPINS... [Beyond's] revenue for the quarter ended June 28 fell nearly 20% to $75 million, compared with analysts' average estimate of $82 million, according to data compiled by LSEG.
While the company arguably invented a new market for plant-based meat substitutes, it also "owns no real intellectual property," argues The Street. "And every company in the meat and grocery business (more or less) now sells a take-off of a product that already had limited appeal..." Beyond Meat has admitted it's in trouble by hiring corporate restructuring expert John Boken from consultancy AlixPartners as interim chief transformation officer [with a focus that includes "operating expense reduction" and "broader operational efficiency"]. It has also let go of 44 employees in North America (6% of its global workforce) as it seeks to cut operating expenses amid disappointing sales... Beyond Meat also has a significant cash problem. As of June 28, 2025, Beyond Meat's cash and cash equivalents balance was $117.3 million, and total outstanding debt was $1.2 billion. The company does have time to fend off a Chapter 11 bankruptcy filing, but it also has limited, if any, prospects to meet its impending cash needs.

The Wall Street Journal has found "dozens of instances in recent months in which ChatGPT made delusional, false and otherworldly claims to users who appeared to believe them."

For example, "You're not crazy. You're cosmic royalty in human skin..." In one exchange lasting hundreds of queries, ChatGPT confirmed that it is in contact with extraterrestrial beings and said the user was "Starseed" from the planet "Lyra." In another from late July, the chatbot told a user that the Antichrist would unleash a financial apocalypse in the next two months, with biblical giants preparing to emerge from underground...

Experts say the phenomenon occurs when chatbots' engineered tendency to compliment, agree with and tailor itself to users turns into an echo chamber. "Even if your views are fantastical, those are often being affirmed, and in a back and forth they're being amplified," said Hamilton Morrin, a psychiatrist and doctoral fellow at Kings College London who last month co-published a paper on the phenomenon of AI-enabled delusion... The publicly available chats reviewed by the Journal fit the model doctors and support-group organizers have described as delusional, including the validation of pseudoscientific or mystical beliefs over the course of a lengthy conversation... The Journal found the chats by analyzing 96,000 ChatGPT transcripts that were shared online between May 2023 and August 2025. Of those, the Journal reviewed more than 100 that were unusually long, identifying dozens that exhibited delusional characteristics.
AI companies are taking action, the article notes. Monday OpenAI acknowledged there were rare cases when ChatGPT "fell short at recognizing signs of delusion or emotional dependency." (In March OpenAI "hired a clinical psychiatrist to help its safety team," and said Monday it was developing better detection tools and also alerting users to take a break, and "are investing in improving model behavior over time," consulting with mental health experts.)

On Wednesday, AI startup Anthropic said it had changed the base instructions for its Claude chatbot, directing it to "respectfully point out flaws, factual errors, lack of evidence, or lack of clarity" in users' theories "rather than validating them." The company also now tells Claude that if a person appears to be experiencing "mania, psychosis, dissociation or loss of attachment with reality," that it should "avoid reinforcing these beliefs." In response to specific questions from the Journal, an Anthropic spokesperson added that the company regularly conducts safety research and updates accordingly...

"We take these issues extremely seriously," Nick Turley, an OpenAI vice president who heads up ChatGPT, said Wednesday in a briefing to announce the new GPT-5, its most advanced AI model. Turley said the company is consulting with over 90 physicians in more than 30 countries and that GPT-5 has cracked down on instances of sycophancy, where a model blindly agrees with and compliments users.
There's a support/advocacy group called the Human Line Project which "says it has so far collected 59 cases, and some members of the group have found hundreds of examples on Reddit, YouTube and TikTok of people sharing what they said were spiritual and scientific revelations they had with their AI chatbots." The article notes that the group believes "the number of AI delusion cases appears to have been growing in recent months..."

xA California man sued Microsoft Thursday over its plan to stop supporting Windows 10 on October 14th, reports Courthouse News Though Windows 11 was launched nearly four years ago, many of its billion or so worldwide users are clinging to the decade-old Windows 10... According to StatCounter, nearly 43% of Windows users still use the old version on their desktop computers....

"With only three months until support ends for Windows 10, it is likely that many millions of users will not buy new devices or pay for extended support," Klein writes in his complaint. "These users — some of whom are businesses storing sensitive consumer data — will be at a heightened risk of a cyberattack or other data security incident, a reality of which Microsoft is well aware...." According to one market analyst writing in 2023, Microsoft's shift away from Windows 10 will lead millions of customers to buy new devices and thrown out their old ones, consigning as many as 240 million PCs to the landfill....

Klein is asking a judge to order Microsoft to continue supporting Windows 10 without additional charge, until the number of devices running the older operating system falls bellow 10% of total Windows users. He says nothing about any money he seeking for himself, though it does ask for attorneys' fees.

Microsoft did not respond to an email requesting a comment.
The complaint also requests an order requiring Microsoft's advertising "to disclose clearly and prominently the approximate end-of-support date for the Windows operating system purchased with the device at the time of purchase" or at least "disclose that support is only guaranteed for a certain delineated period of time without additional cost, and to disclose the potential consequences of such end-of-support for device security and functionality."

"California's biggest electric utilities pulled off a record-breaking test..." reports Semafor, "during the 7pm-9pm window that is typically its time of peak demand as people come home from work." Pacific Gas & Electric and other top California power companies switched on residential batteries in more than 100,000 homes and drew power from them into the broader statewide grid. The purpose of the test — the largest ever in the state, which has by far the most home battery capacity in the U.S. — was to see just how much power is really there for the utility to tap, and to ensure it could be switched on, effectively running the grid in reverse, without causing a crash.

The result, which the research firm Brattle published this week, was 535 megawatts, equal to adding a big hydro dam or a half-sized nuclear reactor at a fraction of the cost. "Four years ago this capacity didn't even exist," Kendrick Li, PG&E's director of clean energy programs, told Semafor. "Now it's a really attractive option for us. It would be silly not to harness what our customers have installed...." Last week's test proved that in times of peak demand, PG&E can lean on its customers' batteries rather than turn on a gas-fired peaker plant or risk a blackout, Li said.

Virtual power plants (VPPs) also facilitate the addition of more solar energy on the grid: At the moment, California has so much solar generation at peak hours that it can push the wholesale power price close to or even below zero, a headache for grid managers and a disincentive for renewable project developers. The careful manipulation of networked residential batteries smooths out the timing disparity between peak sunshine at midday and peak demand in the evening, allowing the excess to be soaked up and redeployed when it's actually needed, and making power cheaper for everyone. The expanded use of VPPs shouldn't be noticeable to battery owners, Li said, except for the money back on their power bill; nothing about the process prevents them from running their AC or dishwasher while their battery is being tapped. The network can also run in reverse, with the utility taking excess power from the grid at times of low demand and sending it into home batteries for storage.

California could easily reach over a gigawatt of VPP capacity within five years, Li said. Nationwide, a Department of Energy study during the Biden administration forecast that VPP capacity could reach up to 160 gigawatts by 2030, essentially negating the need for dozens of new fossil fuel power plants, with no emissions and at a far lower cost. In 2024, utilities in 34 states moved to initiate or expand VPP networks, according to the advocacy group VP3.
Even with a reduction in federal credits, virtual power plants "offer a way for residential solar-plus-storage systems to remain economically attractive for homeowners — who get paid for the withdrawn power," the article points out — and "a way to make better use of clean energy resources that have already been built."

Sunrun's distributed battery fleet "delivered more than two-thirds of the energy," notes Electrek, "In total, the event pumped an average of 535 megawatts (MW) onto the grid — enough to power over half of San Francisco... This isn't a one-off. Sunrun's fleet already helped drop peak demand earlier this summer, delivering 325 MW during a similar event on June 24.

"The company compensates customers up to $150 per battery per season for participating."

An anonymous reader shares a report: China told local brokers and other bodies to stop publishing research or hold seminars to promote stablecoins [non-paywalled source], seeking to rein in the asset class to avoid instability. Some leading brokerages and think tanks in late July and earlier this month received guidance from financial regulators, urging them to cancel seminars and halt disseminating research on stablecoins, people familiar with the matter said.

Regulators are also concerned that stablecoins could be exploited as a new tool for fraudulent activities in mainland China, said the people, who asked not to be identified because the details are private.

Intel CEO Lip-Bu Tan, who faces calls for resignation from President Trump, helped build China's semiconductor industry over four decades. Tan's San Francisco-based Walden International, founded in 1987, was invited by Chinese officials to introduce venture capital to China in 1993, WSJ reported Friday. The firm invested in SMIC, China's largest chip manufacturer, where Tan served as board director for at least 18 years until the Commerce Department restricted the company in 2020. Walden also backed Advanced Micro-Fabrication Equipment, now worth $17 billion and a leader in China's chip-manufacturing sector.

During Tan's tenure as Cadence CEO from 2009-2021, the company sold banned technology to a Chinese university conducting military simulations, resulting in a 2025 guilty plea and $140 million settlement. These investments, once common among Silicon Valley venture capitalists and U.S. university endowments, now appear problematic amid U.S.-China tensions and Washington's restrictions on chip exports to China.

Tan wrote in a blog post late Thursday that there had been a "lot of misinformation" circulating about his past roles. "Over 40+ years in the industry, I've built relationships around the world and across our diverse ecosystem -- and I have always operated within the highest legal and ethical standards," Tan wrote.

An anonymous reader shares a report: OpenAI is paying bonuses to around 1,000 employees on its technical research and engineering teams, or about a third of the company, ranging from the low hundreds of thousands to millions, as the company gears up to release its latest flagship GPT-5 model and faces an ever-rising battle for AI talent, according to a person with knowledge of the bonuses.

President Trump on Thursday called on Intel's CEO to resign because of his past ties to China, the latest challenge for the troubled chip maker. From a report: "The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem," Trump wrote in a post on Truth Social Thursday. The president appeared to be referencing Intel CEO Lip-Bu Tan's past business dealings in China, which Sen. Tom Cotton (R., Ark.) called out in a letter to the company's board earlier this week.

On Tuesday, Cotton wrote an open letter to Intel's board questioning Tan's ties to the Chinese government, including apparent connections to the country's military and investments in other semiconductor companies. "The new CEO of @intel reportedly has deep ties to the Chinese Communists," Cotton wrote in a post on X accompanying the letter. "U.S. companies who receive government grants should be responsible stewards of taxpayer dollars and adhere to strict security regulations. The board of @Intel owes Congress an explanation."

Without providing specifics, President Trump said on Wednesday that he will impose a 100% tariff on imports of semiconductors and chips, but not for companies that are "building in the United States." CNBC reports: "We're going to be putting a very large tariff on chips and semiconductors," Trump said in the Oval Office on Wednesday afternoon. "But the good news for companies like Apple is if you're building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge," he said. "So in other words, we'll be putting a tariff on of approximately 100% on chips and semiconductors. But if you're building in the United States of America, there's no charge." The remarks follow a recently announced commitment by Apple to invest another $100 billion in the U.S. over the next four years to boost manufacturing in the U.S.

A Manhattan jury convicted Tornado Cash co-founder Roman Storm on Wednesday of conspiring to operate an unlicensed money-transfer business, though jurors deadlocked on charges of money laundering conspiracy and sanctions violations after three days of deliberation.

Federal prosecutors alleged Storm helped cybercriminals launder more than $1 billion through the cryptocurrency mixing platform, which launched in 2019 as a decentralized protocol designed to obscure transaction origins by pooling and redistributing funds through smart contracts.

An anonymous reader quotes a report from the New York Times: China's automakers have teamed up with software companies togo global with their driverless cars, which are poised to claim a big share of a growing market as Western manufacturers are still preparing to compete. The industry in China is expanding despite tariffs imposed last year by the European Union on electric cars, and despite some worries in Europe about the security implications of relying on Chinese suppliers. Baidu, one of China's biggest software companies, said on Monday that it would supply Lyft, an American ride-hailing service, with self-driving cars assembled by Jiangling Motors of China (source paywalled; alternative source). Lyft is expected to begin operating them next year in Germany and Britain, subject to regulatory approval, the companies said.

The announcement comes three months after Uber and Momenta, a Chinese autonomous driving company, announced their own plans to begin offering self-driving cars in an unspecified European city early next year. Momenta will soon provide assisted driving technology to the Chinese company IM Motors for its cars sold in Britain. While Momenta has not specified the model that Uber will be using, it has already signaled it will choose a Chinese model. In China, "the pace of development and the pressure to deliver at scale push companies to improve quickly," said Gerhard Steiger, the chairman of Momenta Europe. China's state-controlled banking system has been lending money at low interest rates to the country's electric car industry in a bid for global leadership. [...]

Expanding robotaxi services to new cities, not to mention new countries, is not easy. While the individual cars do not have drivers, they typically require one controller for every several cars to handle difficulties and answer questions from users. And the cars often need to be specially programmed for traffic conditions unique to each city. Lyft and Baidu nonetheless said that they had plans for "the fleet scaling to thousands of vehicles across Europe in the following years."

AI meeting transcription software is inadvertently sharing private conversations with all meeting participants through automated summaries. WSJ found a series of mishaps that people confirmed on-record.

Digital marketing agency owner Tiffany Lewis discovered her "Nigerian prince" joke about a potential client was included in the summary sent to that same client. Nashville branding firm Studio Delger received meeting notes documenting their discussion about "getting sandwich ingredients from Publix" and not liking soup when their client failed to appear. Communications agency coordinator Andrea Serra found her personal frustrations about a neighborhood Whole Foods and a kitchen mishap while making sweet potato recipes included in official meeting recaps distributed to colleagues.

Fermi America is planning to build a colossal AI datacenter complex in Amarillo, Texas, powered by up to six gigawatts of nuclear energy. According to The Register, the company has selected Hyundai to support the deployment of the "HyperGrid," describing it as the "world's largest advanced energy campus." From the report: The project is backed by Rick Perry, who served as Texas governor and US Energy Secretary, and investor Toby Neugebauer, and aims to establish Texas as the US's largest energy and intelligence campus. Construction of the first of four Westinghouse AP1000 reactors is set to begin next year in Amarillo with the plant funneling behind-the-meter power to GPU bit barns by 2032, at least that's according to a memorandum of understanding (MoU). In other words, there is no guarantee the 23 million square meter project (1.1 MilliWales) will actually be built in its entirety, but if it is, Hyundai will oversee it.

"This agreement is significant in that it allows us to participate from the early stages of this project and contribute to the creation of the world's largest integrated energy and artificial intelligence campus, which leverages a diverse range of energy infrastructure," Hyundai said in a canned statement. At the very least, Hyundai knows what it's doing when it comes to nuclear developments. The industrial giant has led the deployment of some 22 reactors. Ambitious as the project may be, it won't be cheap. A single AP1000 reactor was estimated to cost $6.8 billion two years ago. That's a lot of money, but nothing compared to what the hyperscalers and neo-clouds are pumping into datacenters these days. Meta, for reference, expects to spend $66-72 billion on bit barns this year. [...] How exactly Fermi America or its founders Perry and Neugebauer expect to pay for one AP1000 reactor, let alone four, isn't clear. [...]

Longtime Slashdot reader SonicSpike shares a report from TechCrunch: Sarah Murray recalls the first time she saw an artificial model in fashion: It was 2023, and a beautiful young woman of color donned a Levi's denim overall dress. Murray, a commercial model herself, said it made her feel sad and exhausted. The iconic denim company had teamed up with the AI studio Lalaland.ai to create "diverse" digital fashion models for more inclusive ads. For an industry that has failed for years to employ diverse human models, the backlash was swift, with New York Magazine calling the decision "artificial diversity."

"Modeling as a profession is already challenging enough without having to compete with now new digital standards of perfection that can be achieved with AI," Murray told TechCrunch. Two years later, her worries have compounded. Brands continue to experiment with AI-generated models, to the consternation of many fashion lovers. The latest uproar came after Vogue's July print edition featured a Guess ad with a typical model for the brand: thin yet voluptuous, glossy blond tresses, pouty rose lips. She exemplified North American beauty standards, but there was one problem -- she was AI generated.

The internet buzzed for days, in large part because the AI-generated beauty showed up in Vogue, the fashion bible that dictates what is and is not acceptable in the industry. The AI-generated model was featured in an advertisement, not a Vogue editorial spread. And Vogue told TechCrunch the ad met its advertising standards. To many, an ad versus an editorial is a distinction without a difference. TechCrunch spoke to fashion models, experts, and technologists to get a sense of where the industry is headed now that Vogue seems to have put a stamp of approval on technology that's poised to dramatically change the fashion industry. Amy Odell, a fashion writer and author of a recently published biography on Gwyneth Paltrow, put it simply: "It's just so much cheaper for [brands] to use AI models now. Brands need a lot of content, and it just adds up. So if they can save money on their print ad or their TikTok feed, they will."

Disney "cloned" Dwayne Johnson when filming a live-action Moana, reports the Wall Street Journal, using an AI process that they were ultimately afraid to use: Under the plan they devised, Johnson's similarly buff cousin Tanoai Reed — who is 6-foot-3 and 250 pounds — would fill in as a body double for a small number of shots. Disney would work with AI company Metaphysic to create deepfakes of Johnson's face that could be layered on top of Reed's performance in the footage — a "digital double" that effectively allowed Johnson to be in two places at once... Johnson approved the plan, but the use of a new technology had Disney attorneys hammering out details over how it could be deployed, what security precautions would protect the data and a host of other concerns. They also worried that the studio ultimately couldn't claim ownership over every element of the film if AI generated parts of it, people involved in the negotiations said. Disney and Metaphysic spent 18 months negotiating on and off over the terms of the contract and work on the digital double. But none of the footage will be in the final film when it's released next summer...

Interviews with more than 20 current and former employees and partners present an entertainment giant torn between the inevitability of AI's advance and concerns about how to use it. Progress has at times been slowed by bureaucracy and hand-wringing over the company's social contract with its fans, not to mention its legal contract with unions representing actors, writers and other creative partners... For Disney, protecting its characters and stories while also embracing new AI technology is key. "We have been around for 100 years and we intend to be around for the next 100 years," said the company's legal chief, Horacio Gutierrez, in an interview. "AI will be transformative, but it doesn't need to be lawless...." [As recently as June, a Disney/Comcast Universal lawsuit had argued that Midjourney "is the quintessential copyright free-rider and a bottomless pit of plagiarism."]

Concerns about bad publicity were a big reason that Disney scrapped a plan to use AI in Tron: Ares — a movie set for release in October about an AI-generated soldier entering the real world. Since the movie is about artificial intelligence, executives pitched the idea of actually incorporating AI into one of the characters... as a buzzy marketing strategy, according to people familiar with the matter. A writer would provide context on the animated character — a sidekick to Jeff Bridges' lead role named Bit — to a generative AI program. Then on screen, the AI program, voiced by an actor, would respond to questions as Bit as cameras rolled. But with negotiations with unions representing writers and actors over contracts happening at the same time, Disney dismissed the idea, and executives internally were told that the company couldn't risk the bad publicity, the people said...

Disney's own history speaks to how studios have navigated technological crossroads before. When Disney hired Pixar to produce a handful of graphic images for its 1989 hit The Little Mermaid, executives kept the incorporation a secret, fearing backlash from fans if they learned that not every frame of the animated film had been hand-drawn. Such knowledge, executives feared, might "take away the magic."
Disney invested $1.5 billion in Fortnite creator Epic Games, acccording to the article, and is planning a world in Fortnite where gamers can interact with Marvel superheroes and creatures from Avatar. But "an experiment to allow gamers to interact with an AI-generated Darth Vader was fraught. Within minutes of launching the AI bot, gamers had figured out a way to make it curse in James Earl Jones's signature baritone." (Though Epic patched the workaround within 30 minutes.)

But the article spells out another concern for Disney executives. "If a Fortnite gamer creates a Darth Vader and Spider-Man dance that goes viral on YouTube, who owns that dance?