Security

BlackCat Ransomware Group Implodes After Apparent $22M Payment By Change Healthcare (krebsonsecurity.com) 54

An anonymous reader quotes a report from Krebs on Security: There are indications that U.S. healthcare giant Change Healthcare has made a $22 million extortion payment to the infamous BlackCat ransomware group (a.k.a. "ALPHV") as the company struggles to bring services back online amid a cyberattack that has disrupted prescription drug services nationwide for weeks. However, the cybercriminal who claims to have given BlackCat access to Change's network says the crime gang cheated them out of their share of the ransom, and that they still have the sensitive data Change reportedly paid the group to destroy. Meanwhile, the affiliate's disclosure appears to have prompted BlackCat to cease operations entirely. [...]

The affiliate claimed BlackCat/ALPHV took the $22 million payment but never paid him his percentage of the ransom. BlackCat is known as a "ransomware-as-service" collective, meaning they rely on freelancers or affiliates to infect new networks with their ransomware. And those affiliates in turn earn commissions ranging from 60 to 90 percent of any ransom amount paid. "But after receiving the payment ALPHV team decide to suspend our account and keep lying and delaying when we contacted ALPHV admin," the affiliate "Notchy" wrote. "Sadly for Change Healthcare, their data [is] still with us." [...] On the bright side, Notchy's complaint seems to have been the final nail in the coffin for the BlackCat ransomware group, which was infiltrated by the FBI and foreign law enforcement partners in late December 2023. As part of that action, the government seized the BlackCat website and released a decryption tool to help victims recover their systems. BlackCat responded by re-forming, and increasing affiliate commissions to as much as 90 percent. The ransomware group also declared it was formally removing any restrictions or discouragement against targeting hospitals and healthcare providers. However, instead of responding that they would compensate and placate Notchy, a representative for BlackCat said today the group was shutting down and that it had already found a buyer for its ransomware source code. [...] BlackCat's website now features a seizure notice from the FBI, but several researchers noted that this image seems to have been merely cut and pasted from the notice the FBI left in its December raid of BlackCat's network.

Fabian Wosar, head of ransomware research at the security firm Emsisoft, said it appears BlackCat leaders are trying to pull an "exit scam" on affiliates by withholding many ransomware payment commissions at once and shutting down the service. "ALPHV/BlackCat did not get seized," Wosar wrote on Twitter/X today. "They are exit scamming their affiliates. It is blatantly obvious when you check the source code of their new takedown notice." Dmitry Smilyanets, a researcher for the security firm Recorded Future, said BlackCat's exit scam was especially dangerous because the affiliate still has all the stolen data, and could still demand additional payment or leak the information on his own. "The affiliates still have this data, and they're mad they didn't receive this money, Smilyanets told Wired.com. "It's a good lesson for everyone. You cannot trust criminals; their word is worth nothing."

Social Networks

How Will Reddit's IPO Change the Service? (bbc.co.uk) 86

"Reddit users have been reacting with deep gloom to the firm saying it plans to sell shares to the public..." the BBC recently reported: The company has said its plans are "exciting" and will offer the business opportunities for growth. However many users worry the move will fundamentally change the website... "When the most important customers shift from [users] to shareholders, the product always [suffers]," said one person. "It becomes 'what can we do this quarter to squeak out an additional point of revenue', instead of 'how can we make this product better'...."

[T]he company has recorded losses every year since its start, including more than $90m last year. In the filing, Reddit said it had not started trying to make money seriously until 2018. It reported $804m in revenue last year, up more than 20% from 2022. Advertising accounted for nearly all of the revenue, but in a note to prospective investors chief executive Steve Huffman said he was excited about opportunities to make the platform a venue for commerce and license its content to AI companies.

AI

How AI is Taking Water From the Desert (msn.com) 108

Microsoft built two datacenters west of Phoenix, with plans for seven more (serving, among other companies, OpenAI). "Microsoft has been adding data centers at a stupendous rate, spending more than $10 billion on cloud-computing capacity in every quarter of late," writes the Atlantic. "One semiconductor analyst called this "the largest infrastructure buildout that humanity has ever seen."

But is this part of a concerning trend? Microsoft plans to absorb its excess heat with a steady flow of air and, as needed, evaporated drinking water. Use of the latter is projected to reach more than 50 million gallons every year. That might be a burden in the best of times. As of 2023, it seemed absurd. Phoenix had just endured its hottest summer ever, with 55 days of temperatures above 110 degrees. The weather strained electrical grids and compounded the effects of the worst drought the region has faced in more than a millennium. The Colorado River, which provides drinking water and hydropower throughout the region, has been dwindling. Farmers have already had to fallow fields, and a community on the eastern outskirts of Phoenix went without tap water for most of the year... [T]here were dozens of other facilities I could visit in the area, including those run by Apple, Amazon, Meta, and, soon, Google. Not too far from California, and with plenty of cheap land, Greater Phoenix is among the fastest-growing hubs in the U.S. for data centers....

Microsoft, the biggest tech firm on the planet, has made ambitious plans to tackle climate change. In 2020, it pledged to be carbon-negative (removing more carbon than it emits each year) and water-positive (replenishing more clean water than it consumes) by the end of the decade. But the company also made an all-encompassing commitment to OpenAI, the most important maker of large-scale AI models. In so doing, it helped kick off a global race to build and deploy one of the world's most resource-intensive digital technologies. Microsoft operates more than 300 data centers around the world, and in 2021 declared itself "on pace to build between 50 and 100 new datacenters each year for the foreseeable future...."

Researchers at UC Riverside estimated last year... that global AI demand could cause data centers to suck up 1.1 trillion to 1.7 trillion gallons of freshwater by 2027. A separate study from a university in the Netherlands, this one peer-reviewed, found that AI servers' electricity demand could grow, over the same period, to be on the order of 100 terawatt hours per year, about as much as the entire annual consumption of Argentina or Sweden... [T]ensions over data centers' water use are cropping up not just in Arizona but also in Oregon, Uruguay, and England, among other places in the world.

The article points out that Microsoft "is transitioning some data centers, including those in Arizona, to designs that use less or no water, cooling themselves instead with giant fans." And an analysis (commissioned by Microsoft) on the impact of one building said it would use about 56 million gallons of drinking water each year, equivalent to the amount used by 670 families, according to the article. "In other words, a campus of servers pumping out ChatGPT replies from the Arizona desert is not about to make anyone go thirsty."
Open Source

Linux Foundation Launches Open Source Fraud Prevention Solutions, Supported By Gates Foundation (linuxfoundation.org) 20

This week Linux Foundation Charities launched "a groundbreaking open source software solution for real-time fraud prevention" named Tazama — "with support from the Bill & Melinda Gates Foundation."

They're calling it "the first-ever open source platform dedicated to enhancing fraud management in digital payments." Until now, the financial industry has grappled with proprietary and often costly solutions that have limited access and adaptability for many, especially in developing economies.

This challenge is underscored by the Global Anti-Scam Alliance, which reported that nearly $1 trillion was lost to online fraud in 2022. Tazama challenges this status quo by providing a powerful, scalable, and cost-effective alternative that democratizes access to advanced financial monitoring tools that can help combat fraud... The solution's architecture emphasizes data sovereignty, privacy, and transparency, aligning with the priorities of governments worldwide. Hosted by LF Charities, which will support the operation and function of the project, Tazama showcases the scalability and robustness of open source solutions, particularly in critical infrastructure like national payment switches.

Jim Zemlin, executive director of the Linux Foundation, described their reaction as "excited to see an open source solution that not only enhances financial security but also provides a platform for our community to actively contribute to a project with broad societal impacts."

And the announcement also includes a comment from the Bill & Melinda Gates Foundation's deputy director for payment systems. "This pioneering open source platform helps address critical challenges like fraud detection and compliance and paves the way for innovative, inclusive financial solutions that serve everyone, especially those in low-income countries.

"The launch of Tazama signifies another stride towards securing and democratizing digital financial services."
Businesses

Did Remote Working Doom a San Francisco Macy's? (sfstandard.com) 215

"These days in San Francisco, every major business closure triggers a rush to assign blame," argues the San Francisco Standard: When Macy's announced this week that it would shutter its flagship store in Union Square, it unleashed a wave of mourning and recriminations... Mayor London Breed and other local pols like state Sen. Scott Wiener tried to allay fears that Macy's was leaving because of crime, noting the planned closure is one of 150 nationwide. But in a tough election year, it seems few had the appetite to listen to her call for nuance...

The unavoidable truth is the pandemic hollowed out downtown San Francisco's offices and led to an exodus of tech staffers who preferred remote work. It meant the loss of thousands of people who had reason to regularly stroll by Macy's and so many other corporate retailers. Meanwhile, everybody else had even less reason to go shopping in an urban core. Why bother dressing up and schlepping downtown when you could get the same layaway deals online...? [R]etail has been recovering. But it should be no surprise that the recovery has happened largely in suburban markets, which have not experienced a mass exit of workers... Elsewhere, the reality is simple: Malls and department stores have been dying for the last decade, struggling to attract young people and redevelop growing vacant space into desirable uses.

Although Macy's is a legacy name, industry reports show it has been in a real doom loop of its own making. Everyone is angry about retail "shrinkage," an industry term for losses in inventory due to external theft, employee theft and mismanagement. However, reporting by CNBC and others has demonstrated that while corporate retailers may be seeing a bump in retail shrink, it is a smaller factor than other operational missteps. Industry experts suggest that "shrink" can be an excuse for poor inventory management and staffing issues, and brands like Lowe's, Foot Locker and Walgreens are now downplaying organized theft as a primary cause of revenue loss. The reality is that a swath of American retail chains have needed to downsize to remain profitable... [R]eactionary cries for police crackdowns on petty theft and homelessness miss how similar retail shutdowns are happening in cities with tougher crime laws and less visible poverty. Consider that Macy's has already conducted layoffs and cut employee benefits to remain afloat, triggering a worker strike in 2022. Then there's Macy's faltering credit card revenue, which the company said accounted for nearly triple the revenue loss as retail shrink.

While The Standard has reported on Macy's workers blaming theft for the closure, my own visit to Macy's on Tuesday and conversations with longtime sales associates in multiple departments suggested that low staffing, an aging clientele and dips in seasonal shopping have greatly affected business...

Turns out, "scary people stealing things" is a boogeyman that feels more tangible than the obscure machinations of a faltering corporation.

The San Francsico Standard itself was funded in part by billionaire venture capitalist Michael Moritz of Sequoia Capital...
United States

TurboTax and H&R Block Want 'Permission to Blab Your Money Secrets' (yahoo.com) 29

Americans filing their taxes could face privacy threats, reports the Washington Post: "We just need your OK on a couple of things," TurboTax says as you prepare your tax return.

Alarm bells should be ringing in your head at the innocuous tone.

This is where America's most popular tax-prep website asks you to sign away the ironclad privacy protections of your tax return, including the details of your income, home mortgage and student loan payments. With your permission to blab your money secrets, the company earns extra income from showing you advertisements for the next three years for things like credit cards and mortgage offers targeted to your financial situation.

You have the legal right to say no when TurboTax asks for your permission to "share your data" or use your tax information to "improve your experience...."

The article complains that granting permission allows TurboTax to share details with "sibling" companies "such as your salary, the amount of your tax refund, whether you received a tax break for student loans and the day you printed your tax return..."

"You'll see that permission request once near the beginning of the tax prep process. If you skip it then, you'll see the same screen again near the end. You'll have to say yes or no..." This is part of the corporate arms race for your personal data. Everyone including the grocery store, your apps and the manufacturer of your car are gobbling information to profit from details of your life. With TurboTax, though, you have the power to refuse to participate...

TurboTax and the online tax prep service from H&R Block have been asking every year to blab your tax return. We've cautioned you about it for each of the past two tax filing seasons. (I focused only on TurboTax this year.)

Youtube

Watch the Moment 43 Unionized YouTube Contractors Were All Laid Off (msn.com) 178

An anonymous Slashdot reader shared this report from The Washington Post: A YouTube contractor was addressing the Austin City Council on Thursday, calling on them to urge Google to negotiate with his union, when a colleague interrupted him with jaw-dropping news: His 43-person team of contractors had all been laid off...

The YouTube workers, who work for Google and Cognizant, unanimously voted to unionize under the Alphabet Workers Union-CWA in April 2023. Since then, the workers say that Google has refused to bargain with them. Thursday's layoff signifies continued tensions between Google and its workers, some of whom in 2021 formed a union...

Workers had about 20 minutes to gather their belongings and leave the premises before they were considered trespassing.

Video footage of the moment is embedded at the top of the article. "I was speechless, shocked," said the contractor who'd been speaking. He told the Washington Post "I didn't know what to do. But angered, that was the main feeling." The council meeting was streaming live online and has since spread on social media. The contractors view the layoff as retaliation for unionizing, but Google and information technology subcontractor Cognizant said it was the normal end of a business contract.

The ability for layoffs to spread over social media highlights how the painful experience of a job loss is frequently being made public, from employees sharing recordings of Zoom meetings to posting about their unemployment. The increasing tension between YouTube's contractors and Google comes as massive layoffs continue to hit the tech industry — leaving workers uneasy and companies emboldened. Google already has had rounds of cuts the past two years.

Google has been in a long-running battle with many of its contractors as they seek the perks and high pay that full-time Google workers are accustomed to. The company has tens of thousands of contractors doing everything from food service to sales to writing code... Google maintains that Cognizant is responsible for the contractors' employment and working conditions, and therefore isn't responsible for bargaining with them. Cognizant said it is offering the workers seven weeks of paid time to explore other roles at the company and use its training resources.

Last year, the National Labor Relations Board ruled that Cognizant and Google are joint employers of the contractors. In January, the NLRB sent a cease-and-desist letter to both employers for failing to bargain with the union. Since then the issue of joint employment, which would ultimately determine which company is responsible for bargaining, has landed in an appeals court and has yet to be ruled on.

"Workers say they don't have sick pay, receive minimal benefits and are paid as little as $19 an hour," according to the article, "forcing some to work multiple jobs to make ends meet." Sam Regan, a data analyst contractor for YouTube Music, told the Washington Post that he was one of the last workers to leave the meeting where the layoffs were announced.

"Upon leaving, he heard one of the security guards call the non-emergency police line to report trespassers."
Crime

Ransomware Attack Hampers Prescription Drug Sales at 90% of US Pharmacies (msn.com) 81

"A ransomware gang once thought to have been crippled by law enforcement has snarled prescription processing for millions of Americans over the past week..." reports the Washington Post.

"The hackers stole data about patients, encrypted company files and demanded money to unlock them, prompting the company to shut down most of its network as it worked to recover." Insurance giant UnitedHealthcare Group said the hackers struck its Change Health business unit, which routes prescription claims from pharmacies to companies that determine whether patients are covered by insurance and what they should pay... Change Health and a rival, CoverMyMeds, are the two biggest players in the so-called switch business, charging pharmacies a small fee for funneling claims to insurers. "When one of them goes down, obviously it's a major problem," said Patrick Berryman, a senior vice president at the National Community Pharmacists Association...

UnitedHealth estimated that more than 90 percent of the nation's 70,000-plus pharmacies have had to alter how they process electronic claims as a result of the Change Health outage. But it said only a small number of patients have been unable to get their prescriptions at some price. At CVS, which operates one of the largest pharmacy networks in the nation, a spokesperson said there are "a small number of cases in which our pharmacies are not able to process insurance claims" as a result of the outage. It said workarounds were allowing it to fill prescriptions, however...

For pharmacies that were not able to quickly route claims to a different company, the Change Health outage left pharmacists to try to manually calculate a patient's co-pay or offer them the cash price. Compounding the impact, thousands of organizations cut off Change Health from their systems to ensure the hackers did not infect their networks as well... The attack on Change Health has left many pharmacies in a cash-flow bind, as they face bills from the companies that deliver the medication without knowing when they will be reimbursed by insurers. Some pharmacies are requiring customers to pay full price for their prescriptions when they cannot tell if they are covered by insurance. In some cases, that means people are paying more than $1,000 out of pocket, according to social media posts.

The situation has been "extremely disruptive," said Erin Fox, associate chief pharmacy officer at University of Utah Health. "At our system, our retail pharmacies were providing three-day gratis emergency supplies for patients who could not afford to pay the cash price," Fox said by email. "In some cases, like for inhalers, we had to send product out at risk, not knowing if we will ever get paid, but we need to take care of the patients." Axis Pharmacy Northwest near Seattle is "going out on a limb and dispensing product with absolutely no inkling if we'll get paid or not," said Richard Molitor, the pharmacist in charge.
UPDATE: CNN reports Change Healthcare has now announced "plans for a temporary loan program to get money flowing to health care providers affected by the outage." It's a stop-gap measure meant to give some financial relief to health care providers, which analysts say are losing millions of dollars per day because of the outage. Some US officials and health care executives told CNN it may be weeks before Change Healthcare returns to normal operations.
"Once standard payment operations resume, the funds will simply need to be repaid," the company said in a statement. Change Healthcare has been under pressure from senior US officials to get their systems back online. Officials from the White House and multiple federal agencies, including the department of Health and Human Services, have been concerned by the broad financial and health impact of the hack and have been pressing for ways to get Change Healthcare back online, sources told CNN...

In a message on its website Friday afternoon, Change Healthcare also said that it was launching a new version of its online prescribing service following the cyberattack.

Thanks to Slashdot reader CaptainDork for sharing the news.
Businesses

Yelp Says Remote-First Policy Boosted Job Apps By 43%, Led To a More Satisfied Workforce (fortune.com) 16

Since implementing a remote-first policy in 2021, Yelp says it's experienced a surge in job applications and a more satisfied workforce. Fortune reports: Last year, the total number of job applicants was 43% higher compared to 2021, according to Yelp's 2024 Remote Work Report released earlier this month. The number of applicants for sales roles skyrocketed by 103%, and prospects for its general and administrative (G&A) positions shot up 52% over the same time period. Those increases fall in line with data that shows a tidal wave of applicants clamoring for remote jobs. "It's rewarding to see both the level of interest and the quality of our applicants," Carmen Amara, chief people officer at Yelp, told Fortune. "Remote work has allowed us to attract a number of candidates who previously would not have applied to Yelp due to their location."

Despite arguments that remote work weakens workers' connections and growth opportunities, Yelp says it has found the opposite to be true. About 90% of the company's more than 4,700 employees say they have found effective ways to collaborate remotely, and 91% say they are confident in upward career mobility while working out of the office. Flexible schedules have also facilitated a healthy work-life balance -- about 89% of the company's workers say they can manage personal and professional demands, and the same amount say that the remote model has allowed them to make positive changes for their wellbeing.

Notably, Yelp's global tenure has increased to 3.5 years in 2023, compared to 2.8 years the year prior. The company says it's using the money it saved from shutting down its underutilized offices in New York City, Chicago, and Washington D.C., to funnel back into employee benefits, professional development, and wellness reimbursements.

Programming

Stack Overflow To Charge LLM Developers For Access To Its Coding Content (theregister.com) 32

Stack Overflow has launched an API that will require all AI models trained on its coding question-and-answer content to attribute sources linking back to its posts. And it will cost money to use the site's content. From a report: "All products based on models that consume public Stack Overflow data are required to provide attribution back to the highest relevance posts that influenced the summary given by the model," it confirmed in a statement. The Overflow API is designed to act as a knowledge database to help developers build more accurate and helpful code-generation models. Google announced it was using the service to access relevant information from Stack Overflow via the API and integrate the data with its latest Gemini models, and for its cloud storage console.
Open Source

'Paying People To Work on Open Source is Good Actually' 40

Jacob Kaplan-Moss, one of the lead developers of Django, writes in a long post that he says has come from a place of frustration: [...] Instead, every time a maintainer finds a way to get paid, people show up to criticize and complain. Non-OSI licenses "don"t count" as open source. Someone employed by Microsoft is "beholden to corporate interests" and not to be trusted. Patreon is "asking for handouts." Raising money through GitHub sponsors is "supporting Microsoft's rent-seeking." VC funding means we're being set up for a "rug pull" or "enshitification." Open Core is "bait and switch."

None of this is hypothetical; each of these examples are actual things I've seen said about maintainers who take money for their work. One maintainer even told me he got criticized for selling t-shirts! Look. There are absolutely problems with every tactic we have to support maintainers. It's true that VC investment comes with strings attached that often lead to problems down the line. It sucks that Patreon or GitHub (and Stripe) take a cut of sponsor money. The additional restrictions imposed by PolyForm or the BSL really do go against the Freedom 0 ideal. I myself am often frustrated by discovering that some key feature I want out of an open core tool is only available to paid licensees.

But you can criticize these systems while still supporting and celebrating the maintainers! Yell at A16Z all you like, I don't care. (Neither do they.) But yelling at a maintainer because they took money from a VC is directing that anger in the wrong direction. The structural and societal problems that make all these different funding models problematic aren't the fault of the people trying to make a living doing open source. It's like yelling at someone for shopping at Dollar General when it's the only store they have access to. Dollar General's predatory business model absolutely sucks, as do the governmental policies that lead to food deserts, but none of that is on the shoulders of the person who needs milk and doesn't have alternatives.
Bitcoin

Winklevoss Twins' Start-Up Will Pay Burned Customers $1 Billion (thedailybeast.com) 17

Emily Shugerman reports via The Daily Beast: Gemini, the crypto startup owned by the Winklevoss twins, will have to return $1.1 billion to customers who lost money in their partnership with the now-bankrupt crypto lender Genesis. In a deal with the New York State Department of Financial Services, Gemini agreed to return the funds lost by customers of its Earn program, in which users could loan their crypto to Genesis in exchange for interest payments. According to the Department of Financial Services, Gemini "did not fully vet or sufficiently monitor [Genesis] throughout the life of Earn," and the company defaulted on its loans and then went bankrupt, leaving some 200,000 Earn customers empty-handed. "Gemini failed to conduct due diligence on an unregulated third party, later accused of massive fraud, harming Earn customers who were suddenly unable to access their assets after Genesis Global Capital experienced a financial meltdown," DFS Superintendent Adrienne A.Harris said in a statement. "Today's settlement is a win for Earn customers, who have a right to the assets they entrusted to Gemini."

In a tweet, Gemini said it was "pleased to announce that we have finally reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy that will, if approved by the Bankruptcy Court, result in all Earn users receiving 100% of their digital assets back in kind." The DFS said Gemini would also pay $40 million to the Genesis bankruptcy for the benefit of Earn customers, as well as a $37 million fine for "significant failures that threatened the safety and soundness of the company."

Bitcoin

SBF Asks For 5-Year Prison Sentence, Calls 100-Year Recommendation 'Grotesque' (arstechnica.com) 189

An anonymous reader quotes a report from Ars Technica: Convicted FTX fraudster Sam Bankman-Fried pleaded for a lenient prison sentence in a court filing yesterday, saying that he isn't motivated by greed and "is already being punished." Bankman-Fried requested a sentence of 63 to 78 months, or 5.25 to 6.5 years. Because of "Sam's charitable works and demonstrated commitment to others, a sentence that returns Sam promptly to a productive role in society would be sufficient, but not greater than necessary, to comply with the purposes of sentencing," the court filing (PDF) said. Bankman-Fried's filing also said that he maintains his innocence and intends to appeal his convictions.

A presentence investigation report (PSR) prepared by a probation officer recommended that Bankman-Fried be sentenced to 100 years in prison, according to the filing. "That recommendation is grotesque," SBF's filing said, arguing that it is based on an erroneously calculated loss of $10 billion. The $10 billion loss asserted in the PSR is "illusory" because the "victims are poised to recover -- were always poised to recover -- a hundred cents on the dollar" in bankruptcy proceedings, SBF's filing said. The filing urged the court to "reject the PSR's barbaric proposal" of 100 years, saying that such sentences should only be for "heinous conduct" like terrorism and child sexual abuse.

The founder and ex-CEO of cryptocurrency exchange FTX, Bankman-Fried was convicted on seven charges with a combined maximum sentence of 110 years after a monthlong trial in US District Court for the Southern District of New York. The charges included wire fraud and conspiracy to commit wire fraud, securities fraud, commodities fraud, and money laundering. US government prosecutors are required to make a sentencing recommendation by March 15, and US District Judge Lewis Kaplan is scheduled to issue a sentence on March 28.

The Almighty Buck

Zurich Paid 30,000 Workers Double In $200 Million Bank Glitch (fortune.com) 28

An anonymous reader quotes a report from Fortune: Zurich authorities have apologized to city employees after a technical glitch caused a double payment of monthly salaries that local officials are now trying to claw back. About 175 million francs ($200 million) was sent in error on Monday, which was the payday for February, according to a statement. Workers can't keep the money, and officials are trying to devise a streamlined process so that the 30,000 employees affected can easily return it.

A technical error at state-owned Zuercher Kantonalbank, which handles the city's salary transfers, is to blame. The bank itself said that faulty software from one of Swisscom AG's contractors caused the glitch. "Swisscom is aware of the seriousness of this incident and apologizes for the inconvenience caused," the telecommunications company said in a statement shared by the bank. The unexpected windfall prompted a flurry of employees calling up the city's offices to ask about the extra money, according to Swiss newspapers. Others mockingly described it as "inflation compensation" on the city's intranet, and demanded a repeat.

The Almighty Buck

Uber-Like Surge Pricing Is Coming For Fast Food (sfgate.com) 198

Fast food chain Wendy's announced it's adopting a similar approach to Uber's Surge Pricing policy by dynamically adjusting the prices of its menu items during peak demand periods at certain locations. The controversial strategy seeks to leverage real-time data to align pricing and demand, enhancing efficiency and potentially improving customer satisfaction. From a report: During a conference call earlier this month, Wendy's CEO Kirk Tanner said the fast-food chain would experiment with dynamic pricing as early as next year. "Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling," he said. "As we continue to show the benefit of this technology in our company-operated restaurants, franchisee interest in digital menu boards should increase, further supporting sales and profit growth across the system."

Prices seesaw all the time on the sites of online retailers like Amazon that use algorithms and artificial intelligence to monitor competitors and glean insights into individual shoppers, adjusting prices depending on interest in the product or in the brand, said Timothy Webb, an assistant professor at the University of Delaware's hospitality and sport business management program. Coupons and other offers are also routinely dangled in mobile apps to encourage people to make purchases. "A lot of this stuff is already happening even if you don't realize that it is happening. If you have the Starbucks app and I have the Starbucks app, we probably have different offers," Webb said. "We might not be in the drive-through and they just increased the prices, but we are already paying different prices for the same products."

But, he says, Wendy's fans will likely see moderate, not massive, price swings during periods of peak demand. "It's not like $200 or $300 on a flight. This is a hypercompetitive industry. If Wendy's goes up $2 to $3 on a burger at dinner time, I would be shocked. People have too many options. They will just walk down the street and eat at Burger King instead," Webb said. "There will just be little price changes here."

AI

Ghost Kitchens Are Advertising AI-Generated Food On DoorDash and Grubhub (404media.co) 48

Emanuel Maiberg reports via 404 Media: Dozens of Ghost kitchens, restaurants that serve food exclusively by delivery on apps like DoorDash and Grubhub, are selling food that they promote to customers with AI-generated images. It's common for advertisements to stage or edit pictures of food to make it look more enticing, but in these cases the ghost kitchens are showing people pictures of food that literally doesn't exist, and looks nothing like the actual items they're selling, sometimes because the faulty AI is producing physically impossible food items. [...] Some ghost kitchens exist as unmarked commercial kitchens with no actual restaurant you can visit that simply fulfill orders for a variety of brands that only exist on the food delivery services. Other ghost kitchens piggyback on existing, real restaurant kitchens to fulfill orders for those brands that exist only on food delivery apps.

[The food from a business on DoorDash called Pasta Lovers] actually comes from Tony's Pizzeria in North Brooklyn, which also fulfills orders for a cheesesteak brand called Philly Cheez, a hero sandwich brand called Hero Mania, and a wrap brand called That's A Wrap. All of these brands deliver food from different ghost kitchens across the country, and all of them feature the same type of AI-generated images to promote their food, some of which looks ridiculous. [...]

"We don't allow the use of AI-generated images and if we find a merchant is using any, we will remove those images from their menu," Grubhub, which also operates Seamless, told me in an email. However, at the time of writing the AI-generated images on Seamless I sent the company are still live on its site. "We know how important it is for diners to have realistic expectations of what they are ordering and should expect to receive, which is why we share image guidelines with our partners and our system reviews image submissions before they're allowed on our platform." "DoorDash is committed to showcasing realistic representations of meals that customers would receive when ordering online," DoorDash told me in an email. "Showcasing high-quality, accurate, and realistic menu images is crucial for maintaining customer trust and generating sales through DoorDash Marketplace."
"This is all incredibly depressing," concludes Maiberg. "A local pizzeria can't get by unless it makes sandwiches for ghost kitchen brands, the people who make a living taking photographs of food are being displaced by AI tools, and gigantic food delivery apps are still making money by taking a cut from restaurants and screwing over gig delivery drivers."

"AI-generated images of food that people can order and eat finally brings us to a shockingly literal manifestation of Jean Baudrillard's Simulacra. Baudrillard would say the Spicy Philly Cheese from Philly Cheez is "never that which conceals the truth -- it is the truth which conceals that there is none."
The Almighty Buck

Tumblr and Wordpress Are Preparing To Sell User Data To OpenAI and Midjourney, Report Says (404media.co) 42

Tumblr and Wordpress are preparing to sell user data to Midjourney and OpenAI, 404Media reported Tuesday, citing a source with internal knowledge about the deals and internal documents. From the report: The exact types of data from each platform going to each company are not spelled out in documentation we've reviewed, but internal communications reviewed by 404 Media make clear that deals between Automattic, the platforms' parent company, and OpenAI and Midjourney are imminent. The internal documentation details a messy and controversial process within Tumblr itself. One internal post made by Cyle Gage, a product manager at Tumblr, states that a query made to prepare data for OpenAI and Midjourney compiled a huge number of user posts that it wasn't supposed to. It is not clear from Gage's post whether this data has already been sent to OpenAI and Midjourney, or whether Gage was detailing a process for scrubbing the data before it was to be sent.
Education

$1 Billion Donation Will Provide Free Tuition at a Bronx Medical School (nytimes.com) 85

Dr. Ruth Gottesman, a longtime professor at the Albert Einstein College of Medicine, is making free tuition available to all students going forward. From a report: The 93-year-old widow of a Wall Street financier has donated $1 billion to a Bronx medical school, the Albert Einstein College of Medicine, with instructions that the gift be used to cover tuition for all students going forward. The donor, Dr. Ruth Gottesman, is a former professor at Einstein, where she studied learning disabilities, developed a screening test and ran literacy programs. It is one of the largest charitable donations to an educational institution in the United States and most likely the largest to a medical school.

The fortune came from her late husband, David Gottesman, known as Sandy, who was a protege of Warren Buffett and had made an early investment in Berkshire Hathaway, the conglomerate Mr. Buffett built. The donation is notable not only for its staggering size, but also because it is going to a medical institution in the Bronx, the city's poorest borough. The Bronx has a high rate of premature deaths and ranks as the unhealthiest county in New York. Over the past generation, a number of billionaires have given hundreds of millions of dollars to better-known medical schools and hospitals in Manhattan, the city's wealthiest borough.

While her husband ran an investment firm, First Manhattan, Dr. Gottesman had a long career at Einstein, a well-regarded medical school, starting in 1968, when she took a job as director of psychoeducational services. She has long been on Einstein's board of trustees and is currently the chair. In recent years, she has become close friends with Dr. Philip Ozuah, the pediatrician who oversees the medical college and its affiliated hospital, Montefiore Medical Center, as the chief executive officer of the health system. That friendship and trust loomed large as she contemplated what to do with the money her husband had left her.

Robotics

Bezos, Nvidia Join OpenAI in Funding Humanoid Robot Startup (msn.com) 11

OpenAI, Microsoft, Nvidia, and Jeff Bezos are all part of a pack of investors in a business "developing human-like robots," reports Bloomberg, "according to people with knowledge of the situation..."

At the startup — which is named "Figure" — engineers "are working on a robot that looks and moves like a human. The company has said it hopes its machine, called Figure 01, will be able to perform dangerous jobs that are unsuitable for people and that its technology will help alleviate labor shortages." Figure is raising about $675 million in a funding round that carries a pre-money valuation of roughly $2 billion, said the people, who asked not to be identified because the matter is private. Through his firm Explore Investments LLC, Bezos has committed $100 million. Microsoft is investing $95 million, while Nvidia and an Amazon.com Inc.-affiliated fund are each providing $50 million... Other technology companies are involved as well. Intel Corp.'s venture capital arm is pouring in $25 million, and LG Innotek is providing $8.5 million. Samsung's investment group, meanwhile, committed $5 million. Backers also include venture firms Parkway Venture Capital, which is investing $100 million, and Align Ventures, which is providing $90 million...

The AI robotics industry has been busy lately. Earlier this year, OpenAI-backed Norwegian robotics startup 1X Technologies AS raised $100 million. Vancouver-based Sanctuary AI is developing a humanoid robot called Phoenix. And Tesla Inc. is working on a robot called Optimus, with Elon Musk calling it one of his most important projects. Agility Robotics, which Amazon backed in 2022, has bots in testing at one of the retailer's warehouses.
Bloomberg calls the investments in Figure "part of a scramble to find new applications for artificial intelligence."
Education

What Happened After Peter Thiel Paid 271 Students to Drop Out of College? (msn.com) 114

Since 2010, billionaire tech investor Peter Thiel has offered to pay about 20 students $100,000 to drop out of school each year "to start companies or nonprofits," reports the Wall Street Journal. His program has now backed 271 people, and this year the applicant pool "is bigger than ever."

So how's it going? Some big successes include Vitalik Buterin, co-founder of Ethereum, the blockchain network; Laura Deming, a key figure in venture investing in aging and longevity; Austin Russell, who runs self-driving technologies company Luminar Technologies; and Paul Gu, co-founder of consumer lending company Upstart...

Thiel and executives of the fellowship acknowledge they have learned painful lessons along the way. Some applicants pursued ambitious ideas that turned out to be unrealistic, for example. "Asteroid mining is great for press releases but maybe we should have pushed back early on," he says. Others were better at applying to be Thiel fellows than they were starting businesses, it turned out... They've also learned that lone geniuses with brilliant ideas aren't usually the kinds of people who can build organizations. "It's a team sport to get something going and build on it, you can't just be a mad genius, you have to have some social skills and emotional intelligence," says Michael Gibson, an early leader of the organization who is co-founder of a venture fund that invests primarily in those who don't have a college degree...

Thiel hasn't attempted to build a better education system, which program officials acknowledge has made it harder to develop talent in the program... Thiel fellows say they don't receive much more than funding from the program and have limited contact with Thiel, though access to a network of former Thiel fellows can be useful. "Meeting some of the other members inspires you to think bigger," says Boyan Slat, a 2016 Thiel fellow who is chief executive of The Ocean Cleanup, a Netherlands-based nonprofit developing technologies to remove plastic from oceans. Slat says he has spoken to Thiel "three or four times."

As a result, Thiel and other staffers have concluded they can't grow beyond the 20 or so young people chosen as fellows each year. "If you scale the program," Thiel says, "you will have a lot more people who aren't quite ready, you would then have to be super-confident you can develop them" — which Thiel and his colleagues say they aren't skilled at doing... About a quarter of the Thiel fellows eventually returned to college to finish their degrees, suggesting that even the dropouts see enduring value in higher education.

Thiel says they "got way more out of it by going back" after launching their businesses.

"The other 75% didn't need a college degree," he says.

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