Skype is shutting down after two decades on May 5th, notes the Washington Post.

But the bigger problem for retired attorney Karen Griffin is that Microsoft won't refund the money they paid into a Skype account for cheap international phone calls: "They're no longer offering this service that I prepaid for, and now they're not giving me my money back," Griffin said. "There's a lot of people out there who are going to lose money...."

To its credit, Microsoft gave Skype users a couple months' warning about the shutdown coming May 5. People can transfer Skype contacts and chat history to the company's Microsoft Teams chat-and-calling app or to other companies' services. (While Microsoft sells Teams to organizations, there's a free version for personal use.) But Microsoft didn't explain well what will happen to money that people like Griffin have parked in Skype accounts, in some cases for years.... Unless you bought Skype credits very recently, Microsoft said it won't refund money in Skype accounts. The company says it will add an option for Skype account holders to keep using their funds for phone calls online or in Teams.

Griffin doesn't love what Microsoft is doing. She prefers a cash refund or a credit applied to her Microsoft Office subscription, for which she pays about $110 a year. Amit Fulay, vice president of product for Skype and Teams, said it's not possible to shift funds from a Skype account to Office subscriptions. And he nixed refunds because Microsoft will still offer basic call services for former Skype customers. "Refunds make more sense if you took away something," Fulay said. "We're not." Microsoft declined to say how much money Skype users collectively have sitting in accounts that they might never use.

Stacey Higginbotham, a policy specialist with Consumer Reports' technology advocacy team, said Griffin is making a reasonable request for a rich company like Microsoft that's shutting down an internet service. "The best way: Give people their money back. The second-best way, give people a credit to all of your services," Higginbotham said.

Abstract of a paper on NBER: There is much disagreement about the extent to which financial incentives motivate study participants. We elicit preferences for being paid for completing a survey, including a one-in-twenty chance of winning a $100 electronic gift card, a guaranteed electronic gift card with the same expected value, and an option to refuse payment. More than twice as many participants chose the lottery as chose the guaranteed payment. Given that most people are risk averse, this pattern suggests that factors beyond risk preferences -- such as hassle costs -- influenced their decision-making. Almost 20 percent of participants actively refused payment, demonstrating low monetary motivation. We find both systematic and unobserved heterogeneity in the characteristics of who turned down payment. The propensity to refuse payment is more than four times as large among individuals 50 and older compared to younger individuals, suggesting a tradeoff between financially motivating participants and obtaining a representative sample. Overall, our results suggest that modest electronic gift card payments violate key requirements of Vernon Smith's induced value theory.

Germany will get a new "super-high-tech ministry" responsible for research, technology, and aerospace, according to the coalition agreement published by the incoming government this week. From a report: The announcement is one of several nods to science in the 144-page agreement, unveiled on 9 April following weeks of negotiations between the center-right Christian Democrats (CDU) and its sister party, the Christian Social Union in Bavaria (CSU) -- who together won the most seats in February's federal elections -- and the center-left Social Democrats. The agreement is expected to be formally approved by the three parties by early May, paving the way for CDU leader Friedrich Merz to be elected chancellor.

[...] The new agreement lists a number of scientific priorities for the new government, including support for artificial intelligence, quantum technologies, biotechnology, microchip development and production, and fusion energy. "Our goal is that the world's first fusion reactor should be realized in Germany," the text states. It also mentions personalized medicine, oceans research, and sustainability research as "strategic" areas. But the agreement does not include any budget estimates, and observers caution it is unclear where the money for new programs would come from. The agreement does affirm current commitments to increase the budgets of the country's main research organizations by 3% per year through 2030.

Defense Secretary Pete Hegseth has ordered the termination of multiple IT and consulting contracts with firms including Accenture, Deloitte, and Booz Allen Hamilton, describing them as "wasteful spending."

A Department of Defense memo indicates the cuts target the Defense Health Agency's consulting services contract and the Air Force's agreement with Accenture to "re-sell third-party Enterprise Cloud IT Services," services the government can "already fulfill directly with existing procurement resources."

The terminations also include 11 other contracts supporting "non-essential" activities like DEI programs, climate initiatives, and COVID-19 response efforts. The cuts represent $5.1 billion in spending and will yield nearly $4 billion in savings, according to Hegseth. The funds will be redirected toward "critical priorities to Revive the Warrior Ethos, Rebuild the Military, and Reestablish Deterrence," with Hegseth noting the money would better serve "healthcare for our warfighters and their families, instead of $500 an hour business process consultant."

Amazon has to operate like the "world's largest startup" as it works to meet demand for AI and cut bureaucracy in its ranks, Chief Executive Officer Andy Jassy said in his annual letter to shareholders. From a report: "If your customer experiences aren't planning to leverage these intelligent models, their ability to query giant corpuses of data and quickly find your needle in the haystack, their ability to keep getting smarter with more feedback and data, and their future agentic capabilities, you will not be competitive," Jassy wrote in the letter on Thursday. "It's moving faster than almost anything technology has ever seen."

Amazon, like most of the largest technology companies, has bet heavily on artificial intelligence, committing much of its $100 billion in planned capital expenditures this year to AI-related projects.

A court has blocked a British government attempt to keep secret a legal case over its demand to access Apple user data. From a report: The UK Investigatory Powers Tribunal, a special court that handles cases related to government surveillance, said the authorities' efforts were a "fundamental interference with the principle of open justice" in a ruling issued on Monday. The development comes after it emerged in January that the British government had served Apple with a demand to circumvent encryption that the company uses to secure user data stored in its cloud services.

Apple challenged the request, while taking the unprecedented step of removing its advanced data protection feature for its British users. The government had sought to keep details about the demand -- and Apple's challenge of it -- from being publicly disclosed. Apple has regularly clashed with governments over encryption features that can make it difficult for law enforcement to access devices produced by the company. The world's most valuable company last year criticized UK surveillance powers as "unprecedented overreach" by the government.

An anonymous reader quotes a report from Reuters: Visa has offered Apple roughly $100 million to take over the tech giant's credit card partnership from Mastercard, the Wall Street Journal reported on Tuesday, citing sources familiar with the matter. Visa has made a bold push to secure the Apple Card, offering an upfront payment typically reserved for the largest card programs, WSJ reported. American Express is also trying to unseat Mastercard to win the Apple card. Amex is looking to become the card's issuer as well as the network, the report said, citing the sources. Goldman Sachs ended its partnership with Apple in late 2023 as the Wall Street bank retreated from consumer lending.

Microsoft has pulled back on data center projects around the world, suggesting the company is taking a harder look at its plans to build the server farms powering artificial intelligence and the cloud. From a report: The software company has recently halted talks for, or delayed development of, sites in Indonesia, the UK, Australia, Illinois, North Dakota and Wisconsin, according to people familiar with the situation. Microsoft is widely seen as a leader in commercializing AI services, largely thanks to its close partnership with OpenAI. Investors closely track Microsoft's spending plans to get a sense of long-term customer demand for cloud and AI services.

It's hard to know how much of the company's data center pullback reflects expectations of diminished demand versus temporary construction challenges, such as shortages of power and building materials. Some investors have interpreted signs of retrenchment as an indication that projected purchases of AI services don't justify Microsoft's massive outlays on server farms. Those concerns have weighed on global tech stocks in recent weeks, particularly chipmakers like Nvidia which suck up a significant share of data center budgets.

Representatives Alexandria Ocasio-Cortez and Anna Paulina Luna introduced bipartisan legislation in March to cap credit card interest rates at 10% annually as Americans' debt hits record levels. "Credit cards with high interest rates regularly trap working people in endless cycles of debt," Ocasio-Cortez said in a statement.

Credit card debt has reached $1.2 trillion in Q4 2024, up from $720 billion in the same quarter of 2004, according to Federal Reserve Bank of New York data. Average annual percentage rates nearly doubled to 21% in 2024 from 12% in 2003. The Federal Reserve Bank of Philadelphia reported a record number of cardholders making only minimum payments in Q3 2024, "showing signs of consumer stress."

Further reading: Study Reveals Why Credit Card Interest Rates Remain Stubbornly High.

An anonymous reader quotes a report from TechCrunch: Zelle is shutting down its stand-alone app on Tuesday, according to a company blog post. This news might be alarming if you're one of the over 150 million customers in the U.S. who use Zelle for person-to-person payments. But only about 2% of transactions take place via Zelle's app, which is why the company is discontinuing its stand-alone app.

Most consumers access Zelle via their bank, which then allows them to send money to their phone contacts. Zelle users who relied on the stand-alone app will have to re-enroll in the service through another financial institution. Given the small user base of the Zelle app, it makes sense why the company would decide to get rid of it -- maintaining an app takes time and money, especially one where people's financial information is involved.

An anonymous reader quotes a report from The Guardian: A professional YouTuber in Queensland has been ordered to pay $350,000 plus interest and costs to the former world record score holder for Donkey Kong, after the Brisbane district court found the YouTuber had defamed him "recklessly" with false claims of a link between a lawsuit and another YouTuber's suicide. William "Billy" Mitchell, an American gamer who had held world records in Donkey Kong and Pac-Man going back to 1982, as recognized by the Guinness World Records and the video game database Twin Galaxies, brought the case against Karl Jobst, seeking $400,000 in general damages and $50,000 in aggravated damages.

Jobst, who makes videos about "speed running" (finishing games as fast as possible), as well as gaming records and cheating in games, made a number of allegations against Mitchell in a 2021 YouTube video. He accused Mitchell of cheating, and "pursuing unmeritorious litigation" against others who had also accused him of cheating, the court judgment stated. The court heard Mitchell was accused in 2017 of cheating in his Donkey Kong world records by using emulation software instead of original arcade hardware. Twin Galaxies investigated the allegation, and subsequently removed Mitchell's scores and banned him from participating in its competitions. The Guinness World Records disqualified Mitchell as a holder of all his records -- in both Donkey Kong and Pac-Man -- after the Twin Galaxies decision. The judgment stated that Jobst's 2021 video also linked the December 2020 suicide of another YouTuber, Apollo Legend, to "stress arising from [his] settlement" with Mitchell, and wrongly asserted that Apollo Legend had to pay Mitchell "a large sum of money."

Credit card interest rates, which averaged 23% in 2023, are significantly higher than any other major loan product primarily due to non-diversifiable default risk and banks' market power, according to research published by the Federal Reserve Bank of New York.

The comprehensive study, which analyzed 330 million monthly credit card accounts, found that while high default losses contribute to elevated rates, they explain only part of the picture. Even high-FICO borrowers pay spreads exceeding 7% above the federal funds rate. Researchers determined that credit card banks have substantial pricing power, achieved through exceptionally high operating expenses -- about 4-5% of dollar balances annually -- with marketing costs ten times higher than those at other banks.

"Credit card charge-off rates are highly correlated with default rates on banks' other loans as well as on corporate bonds," the researchers said, noting that default risk cannot be diversified away across lending markets, particularly during economic downturns. The study estimated that exposure to aggregate default risk carries a premium of 5.3% per year, which fully explains the relationship between return on assets and credit scores.

Credit cards are ubiquitous in American finance, with 74% of adults owning at least one card, and the payment method accounting for 70% of retail spending. According to the research, 60% of accounts carry balances month-to-month.

Intel Chief Executive Officer Lip-Bu Tan said the chipmaker will spin off assets that aren't central to its mission and create new products including custom semiconductors to try to better align itself with customers. From a report: Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to meet the needs of potential customers, Tan said. Speaking at his first public appearance as CEO, at the Intel Vision conference Monday in Las Vegas, Tan didn't specify what parts of Intel he believes are no longer central to its future.

"We have a lot of hard work ahead," Tan said, addressing the company's customers in the audience. "There are areas where we've fallen short of your expectations." The veteran semiconductor executive is trying to restore the fortunes of a company that dominated an industry for decades, but now finds itself chasing rivals in most of the areas that define success in the field. A key question confronting its leadership is whether a turnaround is best served by the company remaining whole or splitting up its key product and manufacturing operations. Tan gave no indication that he will seek to divest either part of Intel. Instead, he highlighted the problems he needs to fix to get both units performing more successfully. Intel's chips for data center and AI-related work in particular are not good enough, he said. "We fell behind on innovation," the CEO said. "We have been too slow to adapt and meet your needs."

An anonymous reader quotes a report from Reuters: Google has agreed to pay $100 million in cash to settle a long-running lawsuit claiming it overcharged advertisers by failing to provide promised discounts and charged for clicks on ads outside the geographic areas the advertisers targeted. A preliminary settlement of the 14-year-old class action, which began in March 2011, was filed late Thursday in the San Jose, California, federal court, and requires a judge's approval.

Advertisers who participated in Google's AdWords program, now known as Google Ads, accused the search engine operator of breaching its contract by manipulating its Smart Pricing formula to artificially reduce discounts. The advertisers also said Google, a unit of Mountain View, California-based Alphabet, misled them by failing to limit ad distribution to locations they designated, violating California's unfair competition law. Thursday's settlement covers advertisers who used AdWords between January 1, 2004, and December 13, 2012.

Google denied wrongdoing in agreeing to settle. "This case was about ad product features we changed over a decade ago and we're pleased it's resolved," spokesman Jose Castaneda said in an emailed statement. Lawyers for the plaintiffs may seek fees of up to 33% of the settlement fund, plus $4.2 million for expenses. According to court papers, the case took a long time as the parties produced extensive evidence, including more than 910,000 pages of documents and multiple terabytes of click data from Google, and participated in six mediation sessions before four different mediators.

The U.S. and China "are racing to build a truly useful humanoid worker," the Wall Street Journal wrote Saturday, adding that "Whoever wins could gain a huge edge in countless industries."

"The time has come for robots," Nvidia's chief executive said at a conference in March, adding "This could very well be the largest industry of all." China's government has said it wants the country to be a world leader in humanoid robots by 2027. "Embodied" AI is listed as a priority of a new $138 billion state venture investment fund, encouraging private-sector investors and companies to pile into the business. It looks like the beginning of a familiar tale. Chinese companies make most of the world's EVs, ships and solar panels — in each case, propelled by government subsidies and friendly regulations. "They have more companies developing humanoids and more government support than anyone else. So, right now, they may have an edge," said Jeff Burnstein [president of the Association for Advancing Automation, a trade group in Ann Arbor, Michigan]....

Humanoid robots need three-dimensional data to understand physics, and much of it has to be created from scratch. That is where China has a distinct edge: The country is home to an immense number of factories where humanoid robots can absorb data about the world while performing tasks. "The reason why China is making rapid progress today is because we are combining it with actual applications and iterating and improving rapidly in real scenarios," said Cheng Yuhang, a sales director with Deep Robotics, one of China's robot startups. "This is something the U.S. can't match." UBTech, the startup that is training humanoid robots to sort and carry auto parts, has partnerships with top Chinese automakers including Geely... "A problem can be solved in a month in the lab, but it may only take days in a real environment," said a manager at UBTech...

With China's manufacturing prowess, a locally built robot could eventually cost less than half as much as one built elsewhere, said Ming Hsun Lee, a Bank of America analyst. He said he based his estimates on China's electric-vehicle industry, which has grown rapidly to account for roughly 70% of global EV production. "I think humanoid robots will be another EV industry for China," he said. The UBTech robot system, called Walker S, currently costs hundreds of thousands of dollars including software, according to people close to the company. UBTech plans to deliver 500 to 1,000 of its Walker S robots to clients this year, including the Apple supplier Foxconn. It hopes to increase deliveries to more than 10,000 in 2027.

Few companies outside China have started selling AI-powered humanoid robots. Industry insiders expect the competition to play out over decades, as the robots tackle more-complicated environments, such as private homes.
The article notes "several" U.S. humanoid robot producers, including the startup Figure. And robots from Amazon's Agility Robotics have been tested in Amazon warehouses since 2023. "The U.S. still has advantages in semiconductors, software and some precision components," the article points out.

But "Some lawmakers have urged the White House to ban Chinese humanoids from the U.S. and further restrict Chinese robot makers' access to American technology, citing national-security concerns..."

Though it's stock price is still up 200% from its IPO in March of 2024 — last week Reddit's stock had dropped nearly 50% since February 7th.

And then this week, it dropped another 10%, reports Bloomberg, citing both the phenomenon of "volatile technology stocks under pressure" — but also specifically "the gloomy sentiment around Reddit..." The social media platform has struggled to recover since an earnings report in February showed that it is failing to keep up with larger digital advertising peers such as Meta Platforms Inc. and Alphabet Inc.'s Google, which have higher user figures. Reddit's outlook seemed precarious because its U.S. traffic took a hit from a change in Google's search algorithm.

In recent weeks, the short interest in Reddit — a proxy for the volume of bets against the company — has ticked up, and forecasts for the company's share price have fallen. One analyst opened coverage of Reddit this month with a recommendation that investors sell the shares, in part due to the company's heavy reliance on Google. Reddit shares fell more than 5% in intraday trading Friday. "It's been super overvalued," Bob Lang, founder and chief options analyst at Explosive Options said of Reddit. "Their growth rate is very strong, but they still are not making any money." Reddit had a GAAP earnings per share loss of $3.33 in 2024, but reported two consecutive quarters of positive GAAP EPS in the second half of the year...

At its February peak, Reddit's stock had risen over 500% from the $34 initial public offering price last March. Some of the enthusiasm was due to a series of deals in which Reddit was paid to allow its content to be used for training artificial intelligence models. More recently, though, there have been questions about the long-term growth prospects for the artificial intelligence industry.
"On Wall Street, the average price target from analysts has fallen to about $195 from $207 a month ago," the article points out. "That still offers a roughly $85 upside from where shares closed following Thursday's 8% slump..."

Meanwhile Reuters reported that more than 33,000 U.S. Reddit users experienced disruptions on Thursday according to Downdetector.com. "A Reddit spokesperson said the outage was due to a bug in a recent update, which has now been fixed."

"I am having conversations every day with people whose careers are sort of over," a 53-year-old film and TV director told the New York Times: If you entered media or image-making in the '90s — magazine publishing, newspaper journalism, photography, graphic design, advertising, music, film, TV — there's a good chance that you are now doing something else for work. That's because those industries have shrunk or transformed themselves radically, shutting out those whose skills were once in high demand... When digital technology began seeping into their lives, with its AOL email accounts, Myspace pages and Napster downloads, it didn't seem like a threat. But by the time they entered the primes of their careers, much of their expertise had become all but obsolete.

More than a dozen members of Generation X interviewed for this article said they now find themselves shut out, economically and culturally, from their chosen fields. "My peers, friends and I continue to navigate the unforeseen obsolescence of the career paths we chose in our early 20s," Mr. Wilcha said. "The skills you cultivated, the craft you honed — it's just gone. It's startling." Every generation has its burdens. The particular plight of Gen X is to have grown up in one world only to hit middle age in a strange new land. It's as if they were making candlesticks when electricity came in. The market value of their skills plummeted...

Typically, workers in their 40s and 50s are entering their peak earning years. But for many Gen-X creatives, compensation has remained flat or decreased, factoring in the rising cost of living. The usual rate for freelance journalists is 50 cents to $1 per word — the same as it was 25 years ago... As opportunities and incomes dwindle, Gen X-ers in creative fields are weighing their options. Move to a lower-cost place and remain committed to the work you love? Look for a bland corporate job that might provide health insurance and a steady paycheck until retirement?
The article includes several examples of the trend:

• One magazine's photo studio director says professional photographers have been replaced by "a 20-year-old kid who will do the job for $500."

• The article adds that "When photography went digital, photo lab technicians and manual retouchers were suddenly as inessential as medieval scribes." (And "In advertising, brands ditched print and TV campaigns that required large crews for marketing plans that relied on social media posts."")

• An editor at Spin magazine remembers the day its print edition folded...

And besides competition from influencers, there's also AI, "which seems likely to replace many of the remaining Gen X copywriters, photographers and designers. By 2030, ad agencies in the United States will lose 32,000 jobs, or 7.5 percent of the industry's work force, to the technology, according to the research firm Forrester."

Meanwhile the cost of living has skyrocketed, the article points out — even while Gen X-ers "are less secure financially than baby boomers and lack sufficient retirement savings, according to recent surveys..."

The College Board, described as a $2 billion nonprofit, functions as the primary gatekeeper for academic success within American higher education, according to an analysis by Bloomberg. The organization significantly shapes university admissions by controlling not only who gains entry to college but also influencing what students know upon arrival.

This central role in managing and defining higher education admissions positions the Board uniquely. The story adds: The College Board writes the curriculum for 40 AP courses, administers and grades the exams, oversees the PSAT and SAT, and offers a variety of free and paid resources to help prepare for the courses and tests. Many students will wind up paying the company north of $1,000 over the course of their high school career. "If the same people can create the content and create the tests, that's a really great business model where you've got the whole public secondary education system wrapped up in one little company," says Jon Boeckenstedt, the vice provost of enrollment management at Oregon State University and a prominent critic of the College Board.

Housing so many parts of the high school experience under one roof has made the New York-based organization immensely wealthy, with more than $1 billion in annual revenue -- on which it pays no taxes as a 501(c)(3) nonprofit. But mere money isn't the biggest source of the College Board's might. Twelve decades after its creation, it's now the closest thing the fragmented American educational system has to a central governing body, with a huge amount of authority over what students are expected to know when they get to college. Higher education is arguably the most important driver of social mobility, as well as the most powerful force in selecting which members of the next generation will set the political and cultural agenda. By controlling who gets in and what they know when they get there, the College Board has become the chief gatekeeper of academic success in America.

SoftBank Group plans to create industrial parks for AI across the US and is considering an investment of more than $1 trillion, Nikkei reported. From a report: Founder and Chief Executive Officer Masayoshi Son is expected to visit the US to discuss his ideas for such industrial parks, the newspaper said. The factories would likely use AI-equipped robots that would operate autonomously because of labor shortages in the country, according to the report.

Son teamed up with OpenAI and Oracle in January to unveil a $100 billion joint venture to fund AI infrastructure in the US, one of the first such pledges after Donald Trump became president. They said at the time they would deploy $100 billion immediately with the goal of increasing that to at least $500 billion for data centers and physical campuses.

According to the Financial Times, Fidelity Investments is in advanced stages of developing its own stablecoin. Binance reports: The Boston-based financial services giant plans for the token to serve as a form of digital cash, according to the report, which cites two people close to the matter. The token would form part of company's strategy to enter the tokenized government bonds market. Stablecoins are a cryptocurrency whose value is pegged to a real-world asset such as the U.S. dollar or gold. They provide a convenient way for crypto traders to preserve their fiat value without having to cash out of the market.

The news emerges just days after Fidelity filed paperwork to register a blockchain-based version of its U.S. dollar money market fund. The company seeks to register an "OnChain" share class of its Treasury Digital Fund (FYHXX), which holds cash and U.S. Treasury securities and is available only to Fidelity's hedge fund and institutional clients. A Fidelity stablecoin could fill the role of cash in this fund. The report comes a day after World Liberty Financial, a crypto venture backed by Donald Trump and his family, launched a U.S. dollar-pegged stablecoin called USD1.