Economy

Economy news. Economy refers to the system of production, distribution, and consumption of goods and services within a society. It encompasses everything from individual spending and business operations to government policies and international trade. The economy is influenced by numerous factors, including supply and demand, inflation, employment rates, and fiscal policies

Online misinformation fuels tensions over deadly Southport stabbing attack

LONDON — Within hours of a stabbing attack in northwest England that killed three young girls and wounded several more children, a false name of a supposed suspect was circulating on social media. Hours after that, violent protesters were clashing with police outside a nearby mosque.

Police say the name was fake, as were rumors that the 17-year-old suspect was an asylum-seeker who had recently arrived in Britain. Detectives say the suspect charged Thursday with murder and attempted murder was born in the U.K., and British media including the BBC have reported that his parents are from Rwanda.

That information did little to slow the lightning spread of the false name or stop right-wing influencers pinning the blame on immigrants and Muslims.

“There’s a parallel universe where what was claimed by these rumors were the actual facts of the case,” said Sunder Katwala, director of British Future, a think tank that looks at issues including integration and national identity. “And that will be a difficult thing to manage.”

Local lawmaker Patrick Hurley said the result was “hundreds of people descending on the town, descending on Southport from outside of the area, intent on causing trouble — either because they believe what they’ve written, or because they are bad faith actors who wrote it in the first place, in the hope of causing community division.”

One of the first outlets to report the false name, Ali Al-Shakati, was Channel 3 Now, an account on the X social media platform that purports to be a news channel. A Facebook page of the same name says it is managed by people in Pakistan and the U.S. A related website on Wednesday showed a mix of possibly AI-generated news and entertainment stories, as well as an apology for “the misleading information” in its article on the Southport stabbings.

By the time the apology was posted, the incorrect identification had been repeated widely on social media.

“Some of the key actors are probably just generating traffic, possibly for monetization,” said Katwala. The misinformation was then spread further by “people committed to the U.K. domestic far right,” he said.

Governments around the world, including Britain’s, are struggling with how to curb toxic material online. U.K. Home Secretary Yvette Cooper said Tuesday that social media companies “need to take some responsibility” for the content on their sites.

Katwala said that social platforms such as Facebook and X worked to “de-amplify” false information in real time after mass shootings at two mosques in Christchurch, New Zealand, in 2019.

Since Elon Musk, a self-styled free-speech champion, bought X, it has gutted teams that once fought misinformation on the platform and restored the accounts of banned conspiracy theories and extremists.

Rumors have swirled in the relative silence of police over the attack. Merseyside Police issued a statement saying the reported name for the suspect was incorrect, but have provided little information about him other than his age and birthplace of Cardiff, Wales.

Under U.K. law, suspects are not publicly named until they have been charged and those under 18 are usually not named at all. That has been seized on by some activists to suggest the police are withholding information about the attacker.

Tommy Robinson, founder of the far-right English Defense League, accused police of “gaslighting” the public. Nigel Farage, a veteran anti-immigration politician who was elected to Parliament in this month’s general election, posted a video on X speculating “whether the truth is being withheld from us” about the attack.

Brendan Cox, whose lawmaker wife Jo Cox was murdered by a far-right attacker in 2016, said Farage’s comments showed he was “nothing better than a Tommy Robinson in a suit.”

“It is beyond the pale to use a moment like this to spread your narrative and to spread your hatred, and we saw the results on Southport’s streets last night,” Cox told the BBC.

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LogOn: Innovative material cools with no energy

A California company is developing a material that can cool things by sending heat into deep space. Matt Dibble has our story in this week’s edition of LogOn.

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AI-backed autonomous robots monitor construction progress

The construction industry is finding new uses for artificial intelligence. In a multi-story building project in the northwestern U.S. city of Seattle, autonomous robots are tasked with documenting progress and detecting potential hazards. VOA’s Natasha Mozgovaya has the story.

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Manipulated video shared by Musk mimics Harris’ voice, raising concerns about AI in politics

New York — A manipulated video that mimics the voice of Vice President Kamala Harris saying things she did not say is raising concerns about the power of artificial intelligence to mislead with Election Day about three months away.

The video gained attention after tech billionaire Elon Musk shared it on his social media platform X on Friday evening without explicitly noting it was originally released as parody.

The video uses many of the same visuals as a real ad that Harris, the likely Democratic president nominee, released last week launching her campaign. But the video swaps out the voice-over audio with another voice that convincingly impersonates Harris.

“I, Kamala Harris, am your Democrat candidate for president because Joe Biden finally exposed his senility at the debate,” the voice says in the video. It claims Harris is a “diversity hire” because she is a woman and a person of color, and it says she doesn’t know “the first thing about running the country.” The video retains “Harris for President” branding. It also adds in some authentic past clips of Harris.

Mia Ehrenberg, a Harris campaign spokesperson, said in an email to The Associated Press: “We believe the American people want the real freedom, opportunity and security Vice President Harris is offering; not the fake, manipulated lies of Elon Musk and Donald Trump.”

The widely shared video is an example of how lifelike AI-generated images, videos or audio clips have been utilized both to poke fun and to mislead about politics as the United States draws closer to the presidential election. It exposes how, as high-quality AI tools have become far more accessible, there remains a lack of significant federal action so far to regulate their use, leaving rules guiding AI in politics largely to states and social media platforms.

The video also raises questions about how to best handle content that blurs the lines of what is considered an appropriate use of AI, particularly if it falls into the category of satire.

The original user who posted the video, a YouTuber known as Mr Reagan, has disclosed both on YouTube and on X that the manipulated video is a parody. But Musk’s post, which has been viewed more than 123 million times, according to the platform, only includes the caption “This is amazing” with a laughing emoji.

X users who are familiar with the platform may know to click through Musk’s post to the original user’s post, where the disclosure is visible. Musk’s caption does not direct them to do so.

While some participants in X’s “community note” feature to add context to posts have suggested labeling Musk’s post, no such label had been added to it as of Sunday afternoon. Some users online questioned whether his post might violate X’s policies, which say users “may not share synthetic, manipulated, or out-of-context media that may deceive or confuse people and lead to harm.”

The policy has an exception for memes and satire as long as they do not cause “significant confusion about the authenticity of the media.”

Musk endorsed former President Donald Trump, the Republican nominee, earlier this month. Neither Mr Reagan nor Musk immediately responded to emailed requests for comment Sunday.

Two experts who specialize in AI-generated media reviewed the fake ad’s audio and confirmed that much of it was generated using AI technology.

One of them, University of California, Berkeley, digital forensics expert Hany Farid, said the video shows the power of generative AI and deepfakes.

“The AI-generated voice is very good,” he said in an email. “Even though most people won’t believe it is VP Harris’ voice, the video is that much more powerful when the words are in her voice.”

He said generative AI companies that make voice-cloning tools and other AI tools available to the public should do better to ensure their services are not used in ways that could harm people or democracy.

Rob Weissman, co-president of the advocacy group Public Citizen, disagreed with Farid, saying he thought many people would be fooled by the video.

“I don’t think that’s obviously a joke,” Weissman said in an interview. “I’m certain that most people looking at it don’t assume it’s a joke. The quality isn’t great, but it’s good enough. And precisely because it feeds into preexisting themes that have circulated around her, most people will believe it to be real.”

Weissman, whose organization has advocated for Congress, federal agencies and states to regulate generative AI, said the video is “the kind of thing that we’ve been warning about.”

Other generative AI deepfakes in both the U.S. and elsewhere would have tried to influence voters with misinformation, humor or both.

In Slovakia in 2023, fake audio clips impersonated a candidate discussing plans to rig an election and raise the price of beer days before the vote. In Louisiana in 2022, a political action committee’s satirical ad superimposed a Louisiana mayoral candidate’s face onto an actor portraying him as an underachieving high school student.

Congress has yet to pass legislation on AI in politics, and federal agencies have only taken limited steps, leaving most existing U.S. regulation to the states. More than one-third of states have created their own laws regulating the use of AI in campaigns and elections, according to the National Conference of State Legislatures.

Beyond X, other social media companies also have created policies regarding synthetic and manipulated media shared on their platforms. Users on the video platform YouTube, for example, must reveal whether they have used generative artificial intelligence to create videos or face suspension.

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Can tech help solve the Los Angeles homeless crisis? Finding shelter may someday be a click away

LOS ANGELES — Billions of dollars have been spent on efforts to get homeless people off the streets in California, but outdated computer systems with error-filled data are all too often unable to provide even basic information like where a shelter bed is open on any given night, inefficiencies that can lead to dire consequences.

The problem is especially acute in Los Angeles, where more than 45,000 people — many suffering from serious mental illness, substance addictions or both — live in litter-strewn encampments that have spread into virtually every neighborhood, and where rows of rusting RVs line entire blocks.

Even in the state that is home to Silicon Valley, technology has not kept up with the long-running crisis. In an age when anyone can book a hotel room or rent a car with a few strokes on a mobile phone, no system exists that provides a comprehensive listing of available shelter beds in Los Angeles County, home to more than 1 in 5 unhoused people in the U.S.

Mark Goldin, chief technology officer for Better Angels United, a nonprofit group, described L.A.’s technology as “systems that don’t talk to one another, lack of accurate data, nobody on the same page about what’s real and isn’t real.”

The systems can’t answer “exactly how many people are out there at any given time. Where are they?” he said.

The ramifications for people living on the streets could mean whether someone sleeps another night outside or not, a distinction that can be life-threatening.

“They are not getting the services to the people at the time that those people either need the service, or are mentally ready to accept the services,” said Adam Miller, a tech entrepreneur and CEO of Better Angels.

The problems were evident at a filthy encampment in the city’s Silver Lake neighborhood, where Sara Reyes, executive director of SELAH Neighborhood Homeless Coalition, led volunteers distributing water, socks and food to homeless people, including one who appeared unconscious.

She gave out postcards with the address of a nearby church where the coalition provides hot food and services. A small dog bolted out of a tent, frantically barking, while a disheveled man wearing a jacket on a blistering hot day shuffled by a stained mattress.

At the end of the visit Reyes began typing notes into her mobile phone, which would later be retyped into a coalition spreadsheet and eventually copied again into a federal database.

“Anytime you move it from one medium to another, you can have data loss. We know we are not always getting the full picture,” Reyes said. The “victims are the people the system is supposed to serve.”

The technology has sputtered while the homeless population has soared. Some ask how can you combat a problem without reliable data to know what the scope is? An annual tally of homeless people in the city recently found a slight decline in the population, but some experts question the accuracy of the data, and tents and encampments can be seen just about everywhere.

Los Angeles Mayor Karen Bass has pinpointed shortcomings with technology as among the obstacles she faces in homelessness programs and has described the city’s efforts to slow the crisis as “building the plane while flying it.”

She said earlier this year that three to five homeless people die every day on the streets of L.A.

On Thursday, Gov. Gavin Newsom ordered state agencies to start removing homeless encampments on state land in his boldest action yet following a Supreme Court ruling allowing cities to enforce bans on sleeping outside in public spaces.

There is currently no uniform practice for caseworkers to collect and enter information into databases on the homeless people they interview, including notes taken on paper. The result: Information can be lost or recorded incorrectly, and it becomes quickly outdated with the lag time between interviews and when it’s entered into a database. 

The main federal data system, known as the Homeless Management Information System, or HMIS, was designed as a desktop application, making it difficult to operate on a mobile phone.

“One of the reasons the data is so bad is because what the case managers do by necessity is they take notes, either on their phones or on scrap pieces of paper or they just try to remember it, and they don’t typically input it until they get back to their desk” hours, days, a week or even longer afterward, Miller said.

Every organization that coordinates services for homeless people uses an HMIS program to comply with data collection and reporting standards mandated by the U.S. Department of Housing and Urban Development. But the systems are not all compatible.

Sam Matonik, associate director of data at L.A.-based People Assisting the Homeless, a major service provider, said his organization is among those that must reenter data because Los Angeles County uses a proprietary data system that does not talk to the HMIS system.  

“Once you’re manually double-entering things, it opens the door for all sorts of errors,” Matonik said. “Small numerical errors are the difference between somebody having shelter and not.”

Bevin Kuhn, acting deputy chief of analytics for the Los Angeles Homeless Services Authority, the agency that coordinates homeless housing and services in Los Angeles County, said work is underway to create a database of 23,000 beds by the end of the year as part of technology upgrades.

For case managers, “just seeing … the general bed availability is challenging,” Kuhn said.

Among other changes is a reboot of the HMIS system to make it more compatible with mobile apps and developing a way to measure if timely data is being entered by case workers, Kuhn said.

It’s not uncommon for a field worker to encounter a homeless person in crisis who needs immediate attention, which can create delays in collecting data. Los Angeles Homeless Services Authority aims for data to be entered in the system within 72 hours, but that benchmark is not always met.

In hopes of filling the void, Better Angels assembled a team experienced in building large-scale software applications. They are constructing a mobile-friendly prototype for outreach workers — to be donated to participating groups in Los Angeles County — that will be followed by systems for shelter operators and a comprehensive shelter bed database.

Since homeless people are transient and difficult to locate for follow-up services, one feature would create a map of places where an individual had been encountered, allowing case managers to narrow the search.

Services are often available, but the problem is linking them with a homeless person in real time. So, a data profile would show services the individual received in the past, medical issues and make it easy to contact health workers, if needed.

As a secondary benefit — if enough agencies and providers agree to participate — the software could produce analytical information and data visualizations, spotlighting where homeless people are moving around the county, or concentrations of where homeless people have gathered.

One key goal for the prototypes: ease of use even for workers with scant digital literacy. Information entered into the app would be immediately unloaded to the database, eliminating the need for redundant reentries while keeping information up to date.

Time is often critical. Once a shelter bed is located, there is a 48-hour window for the spot to be claimed, which Reyes says happens only about half the time. The technology is so inadequate, the coalition sometimes doesn’t learn a spot is open until it has expired.

She has been impressed with the speed of the Better Angels app, which is in testing, and believes it would cut down on the number of people who miss the housing window, as well as create more reliability for people trying to obtain services.

“I’m hoping Better Angels helps us put the human back into this whole situation,” Reyes said.  

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US claims TikTok collected user views on issues like abortion, gun control

WASHINGTON — In a fresh broadside against one of the world’s most popular technology companies, the Justice Department late Friday accused TikTok of harnessing the capability to gather bulk information on users based on views on divisive social issues like gun control, abortion and religion.

Government lawyers wrote in a brief filed to the federal appeals court in Washington that TikTok and its Beijing-based parent company ByteDance used an internal web-suite system called Lark to enable TikTok employees to speak directly with ByteDance engineers in China.

TikTok employees used Lark to send sensitive data about U.S. users, information that has wound up being stored on Chinese servers and accessible to ByteDance employees in China, federal officials said.

One of Lark’s internal search tools, the filing states, permits ByteDance and TikTok employees in the U.S. and China to gather information on users’ content or expressions, including views on sensitive topics, such as abortion or religion. Last year, The Wall Street Journal reported TikTok had tracked users who watched LGBTQ content through a dashboard the company said it had since deleted.

The new court documents represent the government’s first major defense in a consequential legal battle over the future of the popular social media platform, which is used by more than 170 million Americans. Under a law signed by President Joe Biden in April, the company could face a ban in a few months if it doesn’t break ties with ByteDance.

The measure was passed with bipartisan support after lawmakers and administration officials expressed concerns that Chinese authorities could force ByteDance to hand over U.S. user data or sway public opinion towards Beijing’s interests by manipulating the algorithm that populates users’ feeds.

The Justice Department warned, in stark terms, of the potential for what it called “covert content manipulation” by the Chinese government, saying the algorithm could be designed to shape content that users receive.

“By directing ByteDance or TikTok to covertly manipulate that algorithm; China could for example further its existing malign influence operations and amplify its efforts to undermine trust in our democracy and exacerbate social divisions,” the brief states.

The concern, they said, is more than theoretical, alleging that TikTok and ByteDance employees are known to engage in a practice called “heating” in which certain videos are promoted in order to receive a certain number of views. While this capability enables TikTok to curate popular content and disseminate it more widely, U.S. officials posit it can also be used for nefarious purposes.

Justice Department officials are asking the court to allow a classified version of its legal brief, which won’t be accessible to the two companies.

Nothing in the redacted brief “changes the fact that the Constitution is on our side,” TikTok spokesperson Alex Haurek said in a statement.

“The TikTok ban would silence 170 million Americans’ voices, violating the 1st Amendment,” Haurek said. “As we’ve said before, the government has never put forth proof of its claims, including when Congress passed this unconstitutional law. Today, once again, the government is taking this unprecedented step while hiding behind secret information. We remain confident we will prevail in court.”

In the redacted version of the court documents, the Justice Department said another tool triggered the suppression of content based on the use of certain words. Certain policies of the tool applied to ByteDance users in China, where the company operates a similar app called Douyin that follows Beijing’s strict censorship rules.

But Justice Department officials said other policies may have been applied to TikTok users outside of China. TikTok was investigating the existence of these policies and whether they had ever been used in the U.S. in, or around, 2022, officials said.

The government points to the Lark data transfers to explain why federal officials do not believe that Project Texas, TikTok’s $1.5 billion mitigation plan to store U.S. user data on servers owned and maintained by the tech giant Oracle, is sufficient to guard against national security concerns.

In its legal challenge against the law, TikTok has heavily leaned on arguments that the potential ban violates the First Amendment because it bars the app from continued speech unless it attracts a new owner through a complex divestment process. It has also argued divestment would change the speech on the platform because a new social platform would lack the algorithm that has driven its success.

In its response, the Justice Department argued TikTok has not raised any valid free speech claims, saying the law addresses national security concerns without targeting protected speech, and argues that China and ByteDance, as foreign entities, aren’t shielded by the First Amendment.

TikTok has also argued the U.S. law discriminates on viewpoints, citing statements from some lawmakers critical of what they viewed as an anti-Israel tilt on the platform during its war in Gaza.

Justice Department officials disputes that argument, saying the law at issue reflects their ongoing concern that China could weaponize technology against U.S. national security, a fear they say is made worse by demands that companies under Beijing’s control turn over sensitive data to the government. They say TikTok, under its current operating structure, is required to be responsive to those demands.

Oral arguments in the case is scheduled for September. 

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US, Taiwan, China race to improve military drone technology  

washington — This week, as Taiwan was preparing for the start of its Han Kuang military exercises, its air defense system detected a Chinese drone circling the island. This was the sixth time that China had sent a drone to operate around Taiwan since 2023.

Drones like the one that flew around Taiwan, which are tasked with dual-pronged missions of reconnaissance and intimidation, are just a small part of a broader trend that is making headlines from Ukraine to the Middle East to the Taiwan Strait and is changing the face of warfare. 

The increasing role that unmanned aerial vehicles, or UAVs, play and rising concern about a Chinese invasion of democratically ruled Taiwan is pushing Washington, Beijing and Taipei to improve the sophistication, adaptability and cost of drone technology.

‘Hellscape’ strategy

Last August, the Pentagon launched a $1 billion Replicator Initiative to create air, sea and land drones in the “multiple thousands,” according to the Defense Department’s Innovation Unit. The Pentagon aims to build that force of drones by August 2025.

The initiative is part of what U.S. Admiral Samuel Paparo recently described to The Washington Post as a “hellscape” strategy, which aims to counter a Chinese invasion of Taiwan through the deployment of thousands of unmanned drones in the air and sea between the island and China.

“The benefits of unmanned systems are that you get cheap, disposable mass that’s low cost. If a drone gets shot down, the only people that are crying about it are the accountants,” said Zachary Kallenborn, a policy fellow at George Mason University. “You can use them at large amounts of scale and overwhelm your opponents as well as degrade their defensive capabilities.”

The hellscape strategy, he added, aims to use lots of cheap drones to try to hold back China from attacking Taiwan.

Drone manufacturing supremacy

China has its own plans under way and is the world’s largest manufacturer of commercial drones. In a news briefing after Paparo’s remarks to the Post, it warned Washington that it was playing with fire. 

“Those who clamor for turning others’ homeland into hell should get ready for burning in hell themselves,” said Senior Colonel Wu Qian, spokesperson for the Chinese defense ministry.

“The People’s Liberation Army is able to fight and win in thwarting external interference and safeguarding our national sovereignty and territorial integrity. Threats and intimidation never work on us,” Wu said.

China’s effort to expand its use of drones has been bolstered, analysts say, by leader Xi Jinping’s emphasis on technology and modernization in the military, something he highlighted at a top-level party meeting last week.

“China’s military is developing more than 50 types of drones with varying capabilities, amassing a fleet of tens of thousands of drones, potentially 10 times larger than Taiwan and the U.S. combined,” Michael Raska, assistant professor at Singapore’s Nanyang Technological University, told VOA in an email. “This quantitative edge currently fuels China’s accelerating military modernization, with drones envisioned for everything from pre-conflict intel gathering to swarming attacks.”

Analysts add that China’s commercial drone manufacturing supremacy aids its military in the push for drone development. China’s DJI dominates in production and sale of household drones, accounting for 76% of the worldwide consumer market in 2021.

The scale of production and low price of DJI drones could put China in an advantageous position in a potential drone war, analysts say.

“In Russia and Ukraine, if you have a lot of drones – even if they’re like the commercial off-the-shelf things, DJI drones you can buy at Costco – and you throw hundreds of them at an air defense system, that’s going to create a large problem,” said Major Emilie Stewart, a research analyst at the China Aerospace Studies Institute.

China denies it is seeking to use commercial UAV technology for future conflicts.

“China has always been committed to maintaining global security and regional stability and has always opposed the use of civilian drones for military purposes,” Liu Pengyu, spokesperson for the Chinese Embassy in Washington, told VOA. “We are firmly opposed to the U.S.’s military ties with Taiwan and its effort of arming Taiwan.”

Drone force

With assistance from its American partners, pressure from China and lessons from Ukraine, Taiwan has been pushing to develop its own domestic drone warfare capabilities.

The United States has played a pivotal role in Taiwan’s drone development, and just last week it pledged to sell $360 million of attack drones to the Taipei Economic and Cultural Representative Office, or TECRO, Taiwan’s de facto embassy in Washington.

“Taiwan will continue to build a credible deterrence and work closely with like-minded partners, including the United States, to preserve peace and stability in the region,” TECRO told VOA when asked about the collaboration between Taipei and Washington. “We have no further information to share at this moment.”

The effort to incorporate drones into its defense is crucial for Taiwan, said Eric Chan, a senior nonresident fellow at the Global Taiwan Institute.

“The biggest immediate effects of the U.S. coming into this mass UAV game is to give Taiwan a bigger advantage to be able to, first, detect their enemy and, second, help them build a backstop to their own capabilities as well,” Chan said.

With the potential for China to consider using drones in an urban conflict environment, Taiwan is recognizing the importance of stepping up its counter-drone defense systems.

“After multiple intrusions of Chinese drones in outlying islands, the Taiwan Ministry of Defense now places great emphasis on anti-drone capabilities,” said Yu-Jiu Wang, chief executive of Tron Future, an anti-drone company working with the Taiwanese military.

The demand is one that Wang said his company is willing and ready to fill.

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Video game performers to strike over artificial intelligence concerns

LOS ANGELES — Hollywood’s video game performers voted Thursday to go on strike, throwing part of the entertainment industry into another work stoppage after talks for a new contract with major game studios broke down over artificial intelligence protections. 

The strike — the second for video game voice actors and motion capture performers under the Screen Actors Guild-American Federation of Television and Radio Artists — will begin at 12:01 a.m. Friday. The move comes after nearly two years of negotiations with gaming giants, including divisions of Activision, Warner Bros. and Walt Disney Co., over a new interactive media agreement. 

SAG-AFTRA negotiators say gains have been made over wages and job safety in the video game contract, but that the studios will not make a deal over the regulation of generative AI. Without guardrails, game companies could train AI to replicate an actor’s voice, or create a digital replica of their likeness without consent or fair compensation, the union said. 

Fran Drescher, the union’s president, said in a prepared statement that members would not approve a contract that would allow companies to “abuse AI.” 

“Enough is enough. When these companies get serious about offering an agreement our members can live — and work — with, we will be here, ready to negotiate,” Drescher said. 

A representative for the studios did not immediately respond to an email seeking comment. 

The global video game industry generates well over $100 billion in profit annually, according to game market forecaster Newzoo. The people who design and bring those games to life are the driving force behind that success, SAG-AFTRA said. 

“Eighteen months of negotiations have shown us that our employers are not interested in fair, reasonable AI protections, but rather flagrant exploitation,” said Interactive Media Agreement Negotiating Committee Chair Sarah Elmaleh. 

Last month, union negotiators told The Associated Press that the game studios refused to “provide an equal level of protection from the dangers of AI for all our members” — specifically, movement performers. 

Members voted overwhelmingly last year to give leadership the authority to strike. Concerns about how movie studios will use AI helped fuel last year’s film and television strikes by the union, which lasted four months. 

The last interactive contract, which expired November 2022, did not provide protections around AI but secured a bonus compensation structure for voice actors and performance capture artists after an 11-month strike that began October 2016. That work stoppage marked the first major labor action from SAG-AFTRA following the merger of Hollywood’s two largest actors unions in 2012. 

The video game agreement covers more than 2,500 “off-camera (voiceover) performers, on-camera (motion capture, stunt) performers, stunt coordinators, singers, dancers, puppeteers, and background performers,” according to the union. 

Amid the tense interactive negotiations, SAG-AFTRA created a separate contract in February that covered indie and lower-budget video game projects. The tiered-budget independent interactive media agreement contains some of the protections on AI that video game industry titans have rejected.

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CrowdStrike: More machines fixed as customers, regulators await details on what caused meltdown 

AUSTIN, Tex. — Cybersecurity firm CrowdStrike says a “significant number” of the millions of computers that crashed on Friday, causing global disruptions, are back in operation as its customers and regulators await a more detailed explanation of what went wrong. 

A defective software update sent by CrowdStrike to its customers disrupted airlines, banks, hospitals and other critical services Friday, affecting about 8.5 million machines running Microsoft’s Windows operating system. The painstaking work of fixing it has often required a company’s IT crew to manually delete files on affected machines. 

CrowdStrike said late Sunday in a blog post that it was starting to implement a new technique to accelerate remediation of the problem. 

Shares of the Texas-based cybersecurity company have dropped nearly 30% since the meltdown, knocking off billions of dollars in market value. 

The scope of the disruptions has also caught the attention of government regulators, including antitrust enforcers, though it remains to be seen if they take action against the company. 

“All too often these days, a single glitch results in a system-wide outage, affecting industries from healthcare and airlines to banks and auto-dealers,” said Lina Khan, chair of the U.S. Federal Trade Commission, in a Sunday post on the social media platform X. “Millions of people and businesses pay the price. These incidents reveal how concentration can create fragile systems.” 

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India ed-tech firm Byju’s founder faces reckoning as startup implodes

NEW DELHI — Byju Raveendran, an Indian mathematics whiz who soared from teacher to startup billionaire before his education-technology company imploded this year, now faces his biggest test.

The future of Raveendran’s eponymous Byju’s online coaching firm rests with India’s courts after the country’s biggest startup, once loved by global investors who valued it at $22 billion, crashed below $2 billion in valuation.

The 44-year-old founder last week lost control of the company as a tribunal kick-started an insolvency process.

Accused of “financial mismanagement and compliance issues,” the son of a family of teachers from a small village in south India faces a reckoning that will test the ingenuity that made him a poster child for India’s startups.

His formerly high-flying company was eventually brought low when it could not pay $19 million in sponsorship dues to India’s cricket federation, prompting a tribunal to suspend Byju’s board and make Raveendran report to a court-appointed restructuring expert.

An appeals tribunal is expected to hold a hearing on Monday on whether Byju’s insolvency process should be quashed after the former billionaire argued in court his company is solvent and that insolvency could shut it down and cost the jobs of 27,000 staff, including teachers. Insolvency also would not bode well for Byju’s backers, such as Dutch technology investor Prosus.

Raveendran denies the allegations of mismanagement and wrongdoing at his firm, which has in recent months faced lawsuits over unpaid loans and boardroom battles with foreign investors that went public.

Potential insolvency is a dramatic turn of events for an entrepreneur described by one person who has worked with him as an extremely passionate and goal-oriented person who might adopt “an abrasive approach” in a crisis.

Raveendran presented a “suave, nice and polished” image, appearing to heed advice, but “eventually there was a trust deficit,” said another executive who quit last year as a Byju’s senior vice president.

“He said things are improving, don’t worry, we have the money,” the former executive said.

Raveendran and a Byju’s spokesperson did not respond to requests for comment.

Byju’s downfall: ‘Our fair share of mistakes’

An engineer by training, he started Byju’s in 2011 with physical classes after friends urged him to go into teaching.

Raveendran, who aced a premier Indian management exam “with a score of 100 percentile, not once but twice,” according to the company website, started what would become his empire with his wife Divya Gokulnath, 38, a former student of his.

In education-obsessed India, Raveendran hit gold by offering online teaching programs priced from $100 to $300. He got a mammoth boost when the COVID-19 pandemic sent students indoors. At the height of his fame in 2021, he and his wife had a net worth of $4 billion, Forbes reckoned.

Now all that is in tatters.

Behind the reversal of Byju’s meteoric success, say executives and advisers who worked with Raveendran, is that he overruled associates and expanded the business through expensive acquisitions, splurging on marketing and being slow to address problems such as sales agents adopting aggressive tactics to mis-sell courses that damaged the company’s reputation.

With the backing of investors like General Atlantic, Prosus and Facebook founder Mark Zuckerberg’s philanthropy venture, Raveendran spent millions on acquisitions, and the company says it has 150 million students in over 100 countries.

“While growing fast, as I’ve accepted multiple times, we’ve made our fair share of mistakes,” Raveendran told an interviewer last year at the World Economic Forum in Davos.

As he battled crises, the CEO also said decisions to lay off some of its then-50,000 employees and slash branding expenses would help strengthen loss-making Byju’s and turn its cashflow positive.

“Every country needs a Byju’s,” he said.

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India’s battery storage industry grows

BENGALURU, India — At a Coca-Cola factory on the outskirts of Chennai in southern India, a giant battery powers machinery day and night, replacing a diesel-spewing generator. It’s one of just a handful of sites in India powered by electricity stored in batteries, a key component to fast-tracking India’s energy transition away from dirty fuels.   

The country’s lithium ion battery storage industry — which can store electricity generated by wind turbines or solar panels for when the sun isn’t shining or the wind isn’t blowing — makes up just 0.1% of global battery storage systems. But battery storage is growing fast, with around a third of India’s total battery infrastructure coming online just this year.   

“Our orders are growing exponentially,” said Ayush Misra, CEO of Amperehour Energy, the company that installed the batteries at the Chennai factory. “It’s a really exciting time to be a battery storage provider.”   

Businesses invest in industry

India currently has around 100 megawatts of storage capacity from batteries, with another 3.3 gigawatts of clean energy storage coming from hydropower. The Indian government estimates that the country will need about 74 gigawatts of energy storage from batteries, hydropower and nuclear energy by 2032, but experts think the country actually needs closer to double that amount to meet the country’s energy needs. 

Some customers are still wary of using battery technology for storage, and the storage systems can be seen as more expensive than the more commonly used coal. The supply chain of batteries is also concentrated in China, meaning the sector is vulnerable to geopolitical volatility. 

But markets don’t think customers will be hesitant about batteries for long, with major Indian businesses announcing significant investments in the industry.   

In January this year, energy giant Reliance Industries said it will build a 5,000-acre factory in Jamnagar, Gujarat. And in March, Goodenough Energy said it will spend $53 million by 2027 to set up a 20 million kilowatt-hour battery factory in the northern region of Jammu and Kashmir.   

Alexander Hogeveen Rutter, an independent energy analyst based in Bengaluru, said upping storage capacity should be done alongside ramping up renewables. 

“Clean energy combined with adequate storage can be an alternative to coal. Not in the future but right now,” he said. He added that it’s a “myth” that clean energy is more expensive than coal, as current prices of renewable energy combined with storage is cheaper than new coal.   

Global battery costs are declining faster than expected, and experts say that if costs continue to plummet, energy storage systems can better compete with both coal and clean energy sources like hydropower and nuclear energy that can also control their supply to meet demand. 

“Battery storage is now the largest resource to meet California’s evening peak electricity requirements. It’s more than gas, nuclear or coal,” he said. This is being replicated in the U.K., China and even smaller nations like Tonga. “There’s no reason why this can’t happen in India too,” he said.   

India’s energy needs grow

One of India’s unique challenges is that energy needs are growing more rapidly than most nations: the population is increasing and extreme heat fueled by climate change means more and more people are using energy-guzzling air conditioning. India’s electricity demand grew by 7% last year and is expected to grow by at least 6% every year for the next three years, according to the International Energy Agency. 

“The country needs to quadruple its renewable energy deployment just to meet demand growth,” said Hogeveen Rutter. 

Ankit Mittal, co-founder of Sheru, a software company that offers energy storage and management solutions, said that making battery storage sites more flexible can help the industry ramp up quickly.   

Mittal said battery storage sites should be more accessible to the national energy grid, so they can provide electricity to whichever regions need the extra boost of energy most. Currently, battery storage sites in India only power up more local sites.   

To encourage further growth of the battery sector, the Indian government announced last year a $452 million effort to support an additional four gigawatts of battery storage by 2031. But the government also provides subsidies for coal plants, making the electricity generated there a cheaper bet for some utility companies. 

Future government policy could level the playing field. The country is set to announce a new national budget later in July that industry leaders hope will contain incentives for clean energy storage. 

Akshat Singhal, co-founder of the Bengaluru-based battery tech startup Log 9 Materials, thinks that better government support can help the country meet growing energy demands “the right way,” with clean energy. 

“One significant policy change can kickstart the entire ecosystem,” he said. 

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Australia warns of ‘malicious websites’ after cyber outage

sydney — Australia’s cyber intelligence agency said on Saturday that “malicious websites and unofficial code” were being released online claiming to aid recovery from Friday’s global digital outage, which hit media, retailers, banks and airlines. 

Australia was one of many countries affected by the outage that caused havoc worldwide after a botched software update from CrowdStrike. 

On Saturday, the Australian Signals Directorate — the country’s cyber intelligence agency — said “a number of malicious websites and unofficial code are being released claiming to help entities recover from the widespread outages caused by the CrowdStrike technical incident.” 

On its website, the agency said its cyber security center “strongly encourages all consumers to source their technical information and updates from official CrowdStrike sources only.” 

Cyber Security Minister Clare O’Neil said on social media platform X on Saturday that Australians should “be on the lookout for possible scams and phishing attempts.” 

CrowdStrike — which previously reached a market cap of about $83 billion — is a major cybersecurity provider, with close to 30,000 subscribers globally. 

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Airlines resume services after global IT crash wreaks havoc

Paris — Airlines were gradually coming back online Saturday after global carriers, banks and financial institutions were thrown into turmoil by one of the biggest IT crashes in recent years, caused by an update to an antivirus program.

Passenger crowds had swelled at airports Friday to wait for news as dozens of flights were canceled and operators struggled to keep services on track, after an update to a program operating on Microsoft Windows crashed systems worldwide.

Multiple U.S. airlines and airports across Asia said they were now resuming operations, with check-in services restored in Hong Kong, South Korea and Thailand, and mostly back to normal in India and Indonesia and at Singapore’s Changi Airport as of Saturday afternoon.

“The check-in systems have come back to normal [at Thailand’s five major airports]. There are no long queues at the airports as we experienced yesterday,” Airports of Thailand President Keerati Kitmanawat told reporters at Don Mueang airport in Bangkok.

Microsoft said the issue began at 1900 GMT on Thursday, affecting Windows users running the CrowdStrike Falcon cybersecurity software.

CrowdStrike said it had rolled out a fix for the problem, and the company’s boss, George Kurtz, told U.S. news channel CNBC he wanted to “personally apologize to every organization, every group and every person who has been impacted.”

It also said it could take a few days to return to normal.

U.S. President Joe Biden’s team was talking to CrowdStrike and those affected by the glitch “and is standing by to provide assistance as needed,” the White House said in a statement.

“Our understanding is that flight operations have resumed across the country, although some congestion remains,” a senior US administration official said.

Other industries

Reports from the Netherlands and Britain suggested health services might have been affected by the disruption, meaning the full impact might not yet be known.

Media companies were also hit, with Britain’s Sky News saying the glitch had ended its Friday morning news broadcasts, and Australia’s ABC similarly reporting major difficulties.

By Saturday, services in Australia had mostly returned to normal, but Sydney Airport was still reporting flight delays.

Australian authorities warned of an increase in scam and phishing attempts following the outage, including people offering to help reboot computers and asking for personal information or credit card details.

Banks in Kenya and Ukraine reported issues with their digital services, while some mobile phone carriers were disrupted and customer services in a number of companies went down.

“The scale of this outage is unprecedented and will no doubt go down in history,” said Junade Ali of Britain’s Institution of Engineering and Technology, adding that the last incident approaching the same scale was in 2017.

 

Flight chaos

While some airports halted all flights, in others airline staff resorted to manual check-ins for passengers, leading to long lines and frustrated travelers.

The U.S. Federal Aviation Administration initially ordered all flights grounded “regardless of destination,” although airlines later said they were reestablishing their services and working through the backlog.

India’s largest airline, Indigo, said operations had been “resolved,” in a statement posted on social media platform X.

“While the outage has been resolved and our systems are back online, we are diligently working to resume normal operations, and we expect this process to extend into the weekend,” the carrier said Saturday.

A passenger told AFP that the situation was returning to normal at Delhi Airport by midnight on Saturday with only slight delays in international flights.

Low-cost carrier AirAsia said it was still trying to get back online and had been “working around the clock toward recovering its departure control systems” after the global outage. It recommended passengers arrive early at airports and be ready for “manual check-in” at airline counters.

Chinese state media said Beijing’s airports had not been affected.

In Europe, major airports, including Berlin’s, which had suspended all flights earlier on Friday, said departures and arrivals were resuming.

‘Common cause’

Companies were left patching up their systems and trying to assess the damage, even as officials tried to tamp down panic by ruling out foul play.

CrowdStrike’s Kurtz said in a statement his teams were “fully mobilized” to help affected customers and “a fix has been deployed.”

But Oli Buckley, a professor at Britain’s Loughborough University, was one of many experts who questioned the ease of rolling out a proper fix.

“While experienced users can implement the workaround, expecting millions to do so is impractical,” he said.

Other experts said the incident should prompt a widespread reconsideration of how reliant societies are on a handful of tech companies for such an array of services.

“We need to be aware that such software can be a common cause of failure for multiple systems at the same time,” said John McDermid, a professor at York University in Britain.

He said infrastructure should be designed “to be resilient against such common cause problems.”

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Widespread technology outage disrupts flights, banks, media outlets and companies around the world

WELLINGTON, New Zealand — A global technology outage grounded flights, knocked banks offline and media outlets off air on Friday in a massive disruption that affected companies and services around the world and highlighted dependence on software from a handful of providers.

Cybersecurity firm CrowdStrike said that the issue believed to be behind the outage was not a security incident or cyberattack.

The issue affected Microsoft 365 apps and services, and escalating disruptions continued hours after the technology company said it was gradually fixing it.

The website DownDectector, which tracks user-reported internet outages, recorded growing outages in services at Visa, ADT security and Amazon, and airlines including American Airlines and Delta.

News outlets in Australia reported that airlines, telecommunications providers and banks, and media broadcasters were disrupted as they lost access to computer systems. Airlines in the U.K., Europe and India reported problems and some New Zealand banks said they were offline.

Microsoft 365 posted on X that the company was “working on rerouting the impacted traffic to alternate systems to alleviate impact in a more expedient fashion” and that they were “observing a positive trend in service availability.”

The company did not respond to a request for comment. It did not explain the cause of the outage further.

CrowdStrike CEO George Kurtz posted on social media platform X that the company “is actively working with customers impacted by a defect found in a single content update for Windows hosts.”

He said: “This is not a security incident or cyberattack. The issue has been identified, isolated and a fix has been deployed.”

New Zealand’s acting prime minister, David Seymour, said on X that officials in the country were “moving at pace to understand the potential impacts” of the global problem.

“I have not currently received any reporting to indicate these issues are related to malicious cyber security activity,” Seymour wrote. The issue was causing “inconvenience” for the public and businesses, he added.

Israel’s Cyber Directorate that it was among the places affected by the global outages, attributing them to a problem with Crowdstrike. The outage also hit the country’s post offices and hospitals, according to the ministries of communication and health.

Meanwhile, major disruptions reported by airlines and airports grew.

In the U.S., the FAA said the airlines United, American, Delta and Allegiant had all been grounded. Travelers at Los Angeles International Airport slept on a jetway floor, using backpacks and other luggage for pillows, due to a delayed United flight to Dulles International Airport early on Friday.

Airlines, railways and television stations in the United Kingdom were being disrupted by the computer issues. The budget airline Ryanair, train operators TransPennine Express and Govia Thameslink Railway, as well as broadcaster Sky News are among those affected.

“We’re currently experiencing disruption across the network due to a global third party IT outage which is out of our control,” Ryanair said. “We advise all passengers to arrive at the airport at least three hours before their scheduled departure time.”

Edinburgh Airport said the system outage meant waiting times were longer than usual. London’s Stansted Airport said some airline check-in services were being completed manually, but flights were still operating.

Widespread problems were reported at Australian airports, where lines grew and some passengers were stranded as online check-in services and self-service booths were disabled. Passengers in Melbourne queued for more than an hour to check in, although flights were still operating.

Airline operations in India were disrupted, affecting thousands.

The privately-owned IndiGo airlines told the passengers on X that the Microsoft outage on Friday impacted airline operations in India, inconveniencing thousands of passengers.

Several airlines made statements on X saying that they were following manual check-in and boarding processes and warned of delays due to technical problems.

Hong Kong’s Airport Authority said in a statement that the outage was affecting some airlines at the city’s airport and they had switched to manual check-in.

Amsterdam’s Schiphol Airport said on its website that the outage was having a “major impact on flights” to and from the busy European hub. The outage came on one of the busiest days of the year for the airport, at the start of many people’s summer vacations.

In Germany, Berlin Airport said Friday morning that “due to a technical fault, there will be delays in check-in.” It said that flights were suspended until 10 a.m. (0800GMT), without giving details, German news agency dpa reported.

Zurich Airport, the busiest in Switzerland, suspended landings on Friday morning but said flights headed there that were already in the air were still allowed to land. It said that several airlines, handling agents and other companies at the airport were affected, and that check-in had to be done manually in some cases, but that the airport’s own systems were running.

At Rome’s Leonardo da Vinci airport, some US-bound flights had posted delays, while others were unaffected.

Australia appeared to be severely affected by the issue. Outages reported on the site DownDetector included the banks NAB, Commonwealth and Bendigo, and the airlines Virgin Australia and Qantas, as well as internet and phone providers such as Telstra.

Hospitals in Britain and Germany also reported problems.

Several practices within the National Health Service in England reported that the outage had hit their clinical computer system that contains medical records and is used for scheduling.

“We have no access to patient clinical records so are unable to book appointments or provide information,” Church Lane Surgery in Brighouse in Northern England said on the social media platform X. “This is a national problem and is being worked on as a high priority.”

The NHS did not immediately respond to requests for comment.

In northern Germany, the Schleswig-Holstein University Hospital, which has branches in Kiel and Luebeck, said it had canceled all elective surgery scheduled for Friday, but patient and emergency care were unaffected.

News outlets in Australia — including the ABC and Sky News — were unable to broadcast on their TV and radio channels, and reported sudden shutdowns of Windows-based computers. Some news anchors broadcast live online from dark offices, in front of computers showing “blue screens of death.”

In South Africa, at least one major bank said it was experiencing “nationwide service disruptions” as customers reported they were unable to make payments using their bank cards at grocery stores and gas stations.

The New Zealand banks ASB and Kiwibank said their services were down.

An X user posted a screenshot of an alert from the company Crowdstrike that said the company was aware of “reports of crashes on Windows hosts” related to its Falcon Sensor platform. The alert was posted on a password-protected Crowdstrike site and could not be verified. Crowdstrike did not respond to a request for comment.

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Recent outages highlight need for stronger African internet

Nairobi, Kenya — Experts say Africa needs to invest in robust infrastructure if the continent is to have reliable internet after recent outages due to underwater cable failures highlighted the continent’s reliance on single-path connectivity.

Disruptions in March and May caused online banking problems and communication delays. Businesses experienced interruptions in many countries.

In March, on the Atlantic coast of West Africa, four submarine cables that deliver the internet to at least 17 countries went offline.

Less than two months later, Eastern and Southern Africa experienced outages after two undersea cables were damaged. In Tanzania, the U.S. Embassy in Dar es Salaam closed for two days due to the disruption.

Ben Gumo, a Kenyan who relies on the internet to sell clothes, shoes and children’s wares, said he lost business during the May disruption.

“Someone … puts stuff in the [online] basket, but because of the outage he cannot complete the sale, so he cancels,” Gumo said, adding that he couldn’t update his website with new products.

According to the telecommunications research company Telegeography, over 100 cable cuts occur globally each year. Experts blame undersea volcanic activity, rock falls, recent rainfall and currents in rivers that are much stronger than when some of the cables were built.

Manmade activities also cause disruptions. According to one report, a ship was attacked in the Red Sea and drifted, its anchor pulling up three underwater cables.

Mike Last works with the West Indian Ocean Cable Company, which operates in 20 African countries and has built 36 data centers. He said recent disruptions prompted government officials and businesspeople to recognize the need for better internet infrastructure.

“What it made people realize is that you have to invest in a reliable network, you have to invest in redundancy,” Last said, meaning that internet service is provided by more than one source. “We’ve seen a real boom in clients coming to us wanting connectivity on the new subsea systems.”

Some countries can stay online when one internet source is cut off, although service is often slow and not stable, because service providers and telecommunication carriers invested in more than one international connection.

According to the World Bank, sub-Saharan Africa’s digital infrastructure coverage, access and quality are far behind those of other regions.

However, Africa is embracing the digital future. According to the Submarine Cable Networks, 37 countries have at least one subsea cable connection, and 20 countries have more than two subsea cables.

Last said cables planned by Google and Meta will improve connectivity.

One of the new cables, he said, has a high capacity. Another new cable — named 2Africa and led by Meta, the parent company of Facebook — is being built all the way around Africa.

“It brings a lot of capacity to Africa, and that will help,” Last said.

Experts warn that disparities in connectivity across Africa are expected, but that the development of infrastructure, government policies and private sector investments can accelerate growth.

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