Cybersecurity firm IronNet, founded by former NSA director Keith Alexander, has collapsed after failing to deliver on its promise to revolutionize cyber defense. The company, which went public in 2021 with a $3 billion valuation, shut down in September 2023 after running out of money.

IronNet's downfall has left investors and former employees bitter, with some accusing the company of misleading them about its financial health. "I'm honestly ashamed that I was ever an executive at that company," said Mark Berly, a former IronNet vice president. He said the company's top leaders cultivated a culture of deceit "just like Theranos." Critics point to questionable business practices, subpar products, and associations that potentially exposed the firm to Russian influence. The company's board included high-profile national security figures, which helped attract investments and contracts. However, IronNet struggled to secure major deals and meet revenue projections.

Microsoft gives its Edge web browser an unfair advantage and EU antitrust regulators should subject it to tough EU tech rules, three rival browsers and a group of web developers said in a letter to the European Commission. From a report: The move by Vivaldi, Waterfox, Wavebox and the Open Web Advocacy could boost Norwegian browser company Opera which in July took the European Commission to court for exempting Edge from the Digital Markets Act (DMA). [...] "Unfair practices are currently allowed to persist on the Windows' ecosystem with respect to Edge, unmitigated by the choice screens that exist on mobile," they said, pointing to Edge set as the default browser on all Windows computers. "No platform independent browser can aspire to match Edge's unparalleled distribution advantage on Windows. Edge is, moreover, the most important gateway for consumers to download an independent browser on Windows PCs."

OpenAI has a $4 billion revolving line of credit, bringing its total liquidity to more than $10 billion, CNBC reported Thursday. From the report: It follows news on Wednesday that OpenAI closed its recent funding round at a valuation of $157 billion, including the $6.6 billion the company raised from an extensive roster of investment firms and big tech companies. JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC all participated. The base credit line is $4 billion, with an option to increase it by an additional $2 billion. The loan is unsecured and can be tapped over the course of three years. OpenAI's interest rate is equal to the Secured Overnight Financing Rate (SOFR) plus 100 basis points. SOFR, a measure of the cost of borrowing cash overnight, sat at just over 5% as of early this week, meaning OpenAI would be paying roughly 6% on money that it borrows right away.

PayPal completed its first business payment using its proprietary stablecoin as a way to demonstrate how digital currencies can be used to improve often-clunky commercial transactions. From a report: PayPal paid an invoice to Ernst & Young LLP on Sept. 23 using PYUSD, the stablecoin the firm launched last year, relying on an SAP SE platform to complete the transaction. SAP's platform, known as the digital currency hub, allows enterprises to send and receive digital payments instantly, around the clock. The invoice amount wasn't disclosed.

Stablecoins are cryptocurrencies usually designed to track traditional currencies one-to-one. PYUSD, which has a current market capitalization of almost $700 million, tracks the US dollar. While the consumer-facing benefits of stablecoins often dominate conversations, this payment demonstrates other use cases for the digital currency, according to Jose Fernandez da Ponte, PayPal's senior vice president of its blockchain, cryptocurrency and digital currency group.

Private equity firms are using US public sector workers' retirement savings to fund fossil fuel projects pumping more than a billion tonnes of greenhouse gas emissions into the atmosphere every year, according to an analysis. From a report: They have ploughed more than $1tn into the energy sector since 2010, often buying into old and new fossil fuel projects and, thanks to exemptions from many financial disclosures, operating them outside the public eye, the researchers say. In many cases they are mortgaging workers' futures by taking the money they have put away for old age and investing it in assets that risk serious damage to the climate, the report claims.

"Public sector workers' money, through national, state, and retirement pensions, provides much of the capital for private equity firms' energy investments, but there is limited disclosure to the pension fund managers that the deferred earnings of their beneficiaries have potential climate impacts," it says. Researchers at Americans for Financial Reform Education Fund, Global Energy Monitor and Private Equity Stakeholder Project assessed the holdings of 21 private equity firms, overseeing a combined $6tn in assets under management. Together, the analysis found that the 21 firms were funding projects responsible for releasing more than 1.17bn tons of CO2 equivalent (tCO2e) a year.

Law enforcement from 12 countries arrested four individuals linked to the LockBit ransomware gang, including a developer and a bulletproof hosting administrator. The operation also resulted in the seizure of LockBit infrastructure and involved sanctions targeting affiliates of both LockBit and Evil Corp. BleepingComputer reports: According to Europol, a suspected LockBit ransomware developer was arrested in August 2024 at the request of French authorities while on holiday outside of Russia. The same month, the U.K.'s National Crime Agency (NCA) arrested two more individuals linked to LockBit activity: one believed to be associated with a LockBit affiliate, while the second was apprehended on suspicion of money laundering. In a separate action, at Madrid airport, Spain's Guardia Civil arrested the administrator of a bulletproof hosting service used to shield LockBit's infrastructure. Today, Australia, the United Kingdom, and the United States also revealed sanctions against an individual the UK NCA believes is a prolific LockBit ransomware affiliate linked to Evil Corp.

The United Kingdom sanctioned 15 more Russian nationals involved in Evil Corp's criminal activities, while the United States sanctioned six individuals and Australia targeted two. "These actions follow the massive disruption of LockBit infrastructure in February 2024, as well as the large series of sanctions and operational actions that took place against LockBit administrators in May and subsequent months," Europol said.

schwit1 shares a report from The Independent: Thousands of Bank of America customers reported trouble accessing their bank accounts Wednesday afternoon as the financial institution faced a widespread outage. On social media, customers said they could not view their account balances. Those who could view their accounts said they were met with an alarming $0 balance. For many, a "Connection Error" message popped up while trying to log into the banking app. The message said it was "unable to complete your request" and asked the user to "try again later."

By 1:15 p.m. Eastern Time, nearly 20,000 customers said they were having trouble, according to Downdetector, which reports web outages. That number dropped before rising again around 2:45 p.m. ET. It is unclear what caused the outage

The Federal Communications Commission is making up to $200 million available to help schools and libraries make their computer systems more secure. From a report: The Schools and Libraries Cybersecurity Pilot Program will be used to evaluate whether to fund this kind of program on a more permanent basis. The funding will come through a pool of money called the Universal Service Fund (USF), which is made up of contributions from telecommunications companies. Schools and libraries participating in the program will be able to reimburse things like advanced firewalls, identity protection and authentication services, malware protection, and VPNs.

Amazon is set to roll out a greater number of ads [non-paywalled link] across its blockbuster television shows and movies on Prime Video next year as the US tech giant steps up its push into ad-funded streaming services. Financial Times: The company said it had not seen a sharp drop in subscribers since it introduced advertising to its Prime Video platform eight months ago, allaying fears among top executives of a customer backlash, as it attempts to win over more brands to its streaming service.

Kelly Day, vice-president of Prime Video International, who oversees the streaming video business in global markets, told the Financial Times there would be an increasing number of ad slots for brands to target in 2025. Talking ahead of its first London "up front" on Wednesday evening -- when television companies present their plans to advertisers to attract money over the next year -- Day said its advertising "load" would "ramp up a little bit more into 2025."

Financial Times has more details on the new fundraise closed by OpenAI. From the report: OpenAI has asked investors to avoid backing rival start-ups such as Anthropic and Elon Musk's xAI, as it secures $6.6bn in new funding and seeks to shut out challengers to its early lead in generative artificial intelligence. [...] During the negotiations, the company made clear that it expected an exclusive funding arrangement, according to three people with knowledge of the discussions. Seeking exclusive relationships with investors restricts rivals' access to capital and strategic partnerships. The move by the maker of ChatGPT risks inflaming existing tensions with competitors, especially Musk, who is suing OpenAI. Venture firms are party to sensitive information about the companies they invest in, and close relationships with one company can make it difficult or contentious to also back a rival. But exclusivity is rarely insisted on, according to VCs, and many leading firms have spread their bets in certain sectors. Sequoia Capital and Andreessen Horowitz, for instance, have backed multiple AI start-ups, including both OpenAI and Musk's xAI.

An anonymous reader quotes a report from Reuters: A federal judge dismissed a U.S. Department of Justice lawsuit accusing eBay of violating environmental laws by allowing the sale of hundreds of thousands of harmful products on its platform, including pesticides and devices to evade motor vehicle pollution controls. U.S. District Judge Orelia Merchant in Brooklyn ruled on Monday that Section 230 of the federal Communications Decency Act, which protects online platforms from liability over user content, shielded eBay from liability in the civil lawsuit.

The judge said eBay's administrative and technical support to sellers "does not materially contribute to the products' alleged unlawfulness" and does not make the San Jose, California, company a "publisher or speaker" on sellers' behalf. Merchant also said eBay was not a "seller" of some of the challenged products, because it did not physically possess them or hold title. She rejected the government's argument that eBay was a seller because it exchanged the products for money. The U.S. government argued eBay violated the Clean Air Act by allowing the sale of harmful products, including more than 343,000 aftermarket "defeat" devices that help vehicles generate more power and get better fuel economy by evading emissions controls. The company also was accused of allowing sales of 23,000 unregistered, misbranded or restricted-use pesticides, as well as distributing more than 5,600 paint and coating removal products that contained methylene chloride, a chemical linked to brain and liver cancer and non-Hodgkin lymphoma.

More American workers are seeing their compensation tied to performance metrics, a shift from traditional fixed salaries. A 2024 survey by Alexander Group found 28% of over 300 companies are incorporating incentive pay into new roles, extending a practice once limited to sales and executive positions. Employers argue this model boosts productivity, while some workers report earning less than expected, WSJ reported Monday.

Last weekend Boeing announced that its CEO of Defense, Space, and Security "had left the company," according to Barrons. "Parting ways like this, for upper management, is the equivalent to firing," they write — though they add that setbacks on Starliner's first crewed test flight is "far too simple an explanation." Starliner might, however, have been the straw that broke the camel's back. [New CEO Kelly] Ortberg took over in early August, so his first material interaction with the Boeing Defense and Space business was the spaceship's failed test flight... Starliner has cost Boeing $1.6 billion and counting. That's lot of money, but not all that much in the context of the Defense business, which generates sales of roughly $25 billion a year.... [T]he overall Defense business has performed poorly of late, burdened by fixed price contracts that have become unprofitable amid years of higher than expected inflation. Profitability in the defense business has been declining since 2020 and started losing money in 2022. From 2022 to 2024 losses should total about $6 billion cumulatively, including Wall Street's estimates for the second half of this year.

Still, it felt like something had to give. And the change shows investors something about new CEO Ortberg. "At this critical juncture, our priority is to restore the trust of our customers and meet the high standards they expect of us," read part of an internal email sent to Boeing employees announcing the change. "Why his predecessor — David Calhoun — didn't pull this trigger earlier this year is a mystery," wrote Gordon Haskett analyst Don Bilson in a Monday note. "Can't leave astronauts behind."
"Ortberg's logic appears sound," the article concludes. "In recent years, Boeing has disappointed its airline and defense customers, including NASA...

"After Starliner, defense profitability, and the strike, Ortberg has to tackle production quality, production rates, and Boeing's ailing balance sheet. Boeing has amassed almost $60 billion in debt since the second tragic 737 MAX crash in March 2019."

Thanks to Slashdot reader Press2ToContinue for sharing the news.

Meta has been fined $101.5 million by the Irish Data Protection Commission (DPC) for storing over half a billion user passwords in plain text for years, with some engineers having access to this data for over a decade. The issue, discovered in 2019, predominantly affected non-US users, especially those using Facebook Lite. AppleInsider reports: Meta Ireland was found guilty of infringing four parts of GDPR, including how it "failed to notify the DPC of a personal data breach concerning storage of user passwords in plain text." Meta Ireland did report the failure, but only some months after it was discovered. "It is widely accepted that user passwords should not be stored in plaintext, considering the risks of abuse that arise from persons accessing such data," said Graham Doyle, Deputy Commissioner at the DPC, in a statement about the fine. "It must be borne in mind, that the passwords the subject of consideration in this case, are particularly sensitive, as they would enable access to users' social media accounts."

Other than the fine and an official reprimand, the full extent of the DPC's ruling is yet to be released publicly. The details published so far do not reveal whether the passwords included any of US users as well as ones in Ireland or across the rest of the European Union. It's most likely that the issue concerns only non-US users, however. That's because in 2019, Facebook told CNN that the majority of the plain text passwords were for a service called Facebook Lite, which it described as being a cut-down service for areas of the world with slower connectivity.

Meta Platforms' claims that Facebook doesn't polarize Americans came under new doubt as the journal Science raised questions about a prominent research paper the tech giant has cited to support its position. WSJ: In an editorial Thursday, Science said that Meta's emergency efforts to calm its platforms in the wake of the 2020 election may have swayed the conclusions of the paper, which the journal published in July 2023. The editorial, titled "Context matters in social media," was prompted by a letter that Science also published presenting new criticism of the paper. Because the study of Facebook's algorithms relied on data provided by Meta when it was undertaking extraordinary efforts to restrain incendiary political content, the letter's authors argue that the paper may have overstated the case that social media algorithms didn't contribute to political polarization.

Such criticisms of peer-reviewed research often appear below papers in academic journals, but Science's editors felt their editorial was needed to more prominently caveat this original paper's conclusions, said Holden Thorp, Science's editor in chief. "It was incumbent on us to come up with a way somehow that people who would come to the paper would know of these concerns,â Thorp said in an interview. While no correction was warranted, he said, "There's an election coming up, and we care about people citing this paper." Meta said it had been transparent with researchers about its actions during the time of the study, and the company and its research partners say it had no control over the Science paper's conclusions. Meta called debates of the sort aired on Thursday as part of the research process.

Taiwan Semiconductor Manufacturing Co (TSMC) executives have dismissed OpenAI CEO Sam Altman's ambitious chip-making proposal as unrealistic, according to The New York Times. Altman, seeking to boost AI computing power, pitched a $7 trillion plan to build 36 semiconductor plants over several years during a visit to TSMC's Taiwan headquarters. TSMC leaders reportedly found Altman's proposal so far-fetched that they privately referred to him as a "podcasting bro," reflecting skepticism about his grasp of the semiconductor industry's complexities. The world's largest contract chipmaker, already grappling with multi-billion dollar expansion projects, viewed Altman's scheme as overly risky given the massive capital requirements and market uncertainties.

OpenAI, creator of ChatGPT, is experiencing significant internal turmoil as a wave of high-profile departures, including Chief Technology Officer Mira Murati, rocks the company. Over 20 researchers and executives have left this year, reflecting deepening tensions between the organization's original nonprofit mission and its new profit-driven focus, WSJ reported Friday.

Employees report rushed product launches and inadequate safety testing, raising concerns about OpenAI's technological edge. CEO Sam Altman's global promotional efforts have reportedly left him detached from daily operations. The shift towards a conventional business model, with new C-suite appointments and a $6.5 billion funding drive, has alienated longtime staff who fear the company is abandoning its founding principles.

"The Federal Trade Commission is cracking down on 'automation' companies that launch and manage online businesses on behalf of customers in exchange for an upfront investment," reports CNBC's Annie Palmer. "The latest case targets Ascend Ecom, which ran an e-commerce money-making scheme, primarily on Amazon." The FTC accuses the e-commerce company of defrauding consumers of at least $25 million through false claims, deceptive marketing practices, and attempts to suppress negative reviews. From the report: Jamaal Sanford received a disturbing email in May of last year. The message, whose sender claimed to be part of a "Russian shadow team," contained Sanford's home address, social security number and his daughter's college. It came with a very specific threat. The sender said Sanford, who lives in Springfield, Missouri, would only only be safe if he removed a negative online review. "Do not play tough guy," the email said. "You have nothing to gain by keeping the reviews and EVERYTHING to lose by not cooperating."

Months earlier, Sanford had left a scathing review for an e-commerce "automation" company called Ascend Ecom on the rating site Trustpilot. Ascend's purported business was the launching and managing of Amazon storefronts on behalf of clients, who would pay money for the service and the promise of earning thousands of dollars in "passive income." Sanford had invested $35,000 in such a scheme. He never recouped the money and is now in debt, according to a Federal Trade Commission lawsuit unsealed on Friday. His experience is a key piece of the FTC's suit, which accuses Ascend of breaking federal laws by making false claims related to earnings and business performance, and threatening or penalizing customers for posting honest reviews, among other violations. The FTC is seeking monetary relief for Ascend customers and to prevent Ascend from doing business permanently.

An anonymous reader quotes a report from 404 Media: After a horseback riding accident left him paralyzed from the waist down in 2009, former jockey Michael Straight learned to walk again with the help of a $100,000 ReWalk Personal exoskeleton. Earlier this month, that exoskeleton broke because of a malfunctioning piece of wiring in an accompanying watch that makes the exoskeleton work. The manufacturer refused to fix it, saying the machine was now too old to be serviced, and Straight once again couldn't walk anymore. "After 371,091 steps my exoskeleton is being retired after 10 years of unbelievable physical therapy," Straight posted on Facebook on September 16. "The reasons [sic] why it has stopped is a pathetic excuse for a bad company to try and make more money. The reason it stopped is because of a battery in the watch I wear to operate the machine. I called thinking it was no big deal, yet I was told they stopped working on any machine that was 5 years or older. I find it very hard to believe after paying nearly $100,000 for the machine and training that a $20 battery for the watch is the reason I can't walk anymore?"

Straight's experience is a nightmare scenario that highlights what happens when companies decide to stop supporting their products and do not actively support independent repair. It's also what happens without the protection of right to repair legislation that requires manufacturers to make repair parts, guides, and tools available to the general public. Specifically, a connection wire became desoldered from the battery in a watch that connects to the exoskeleton: "It's not the actual battery, but it's the little green connection piece we need to be the right fit and that's been our problem," Straight posted on Facebook. Straight's personal exoskeleton was broken for two months, he said in a video on Facebook. He was eventually able to get the device fixed after attention from an article in the Paulick Report, a website about the horse industry, and a spot on local TV. "It took me two months, and I got no results," he said in the video. With social media and news attention, "it only took you all four days, and look at the results," he said earlier this week while standing in the exoskeleton. "This is the dystopian nightmare that we've kind of entered in, where the manufacturer perspective on products is that their responsibility completely ends when it hands it over to a customer. That's not good enough for a device like this, but it's also the same thing we see up and down with every single product," Nathan Proctor, head of citizen rights group US PIRG's right to repair project told 404 Media. "People need to be able to fix things, there needs to be a plan in place. A $100,000 product you can only use as long as the battery lasts, that's enraging. We should not have to tolerate a society where this happens."

"We have all this technology we release into the wild and it changes people's lives, but there's no long-term thinking. Manufacturers currently have no legal obligation to support the equipment indefinitely and there's no requirements that they publish sufficient documentation to allow others to do it," Proctor said. "We need to set minimum standards for documentation so that, even if a company goes bankrupt or falls off the face of the earth, a technician with sufficient knowledge can fix it."

OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation that will no longer be controlled by its non-profit board. "Chief executive Sam Altman will also receive equity for the first time in the for-profit company, which could be worth $150 billion after the restructuring as it also tries to remove the cap on returns for investors," reports Reuters. From the report: The OpenAI non-profit will continue to exist and own a minority stake in the for-profit company, the sources said. The move could also have implications for how the company manages AI risks in a new governance structure. [...] The details of the proposed corporate structure, first reported by Reuters, highlight significant governance changes happening behind the scenes at one of the most important AI companies. The plan is still being hashed out with lawyers and shareholders and the timeline for completing the restructuring remains uncertain, the sources said. "We remain focused on building AI that benefits everyone, and we're working with our board to ensure that we're best positioned to succeed in our mission. The non-profit is core to our mission and will continue to exist," an OpenAI spokesperson said.

Earlier today, OpenAI's chief technology officer Mira Murati announced her departure from the company. Her resignation follows the departures of founders Ilya Sutskever and John Schulman.

Further reading: OpenAI Pitched White House On Unprecedented Data Center Buildout