New emails from before the launch of the Epic Games Store in 2018 show just how angry Epic CEO Tim Sweeney was with the "assholes" at companies like Valve and Apple for squeezing "the little guy" with what he saw as inflated fees. "The emails, which came out this week as part of Wolfire's price-fixing case against Valve (as noticed by the GameDiscoverCo newsletter), confront Valve managers directly for platform fees Sweeney says are 'no longer justifiable,'" writes Ars Technica's Kyle Orland. "They also offer a behind-the-scenes look at the fury Sweeney and Epic would unleash against Apple in court proceedings starting years later. From the report: The first mostly unredacted email chain from the court documents, from August 2017 (PDF), starts with Valve co-founder Gabe Newell asking Sweeney if there is "anything we [are] doing to annoy you?" That query was likely prompted by Sweeney's public tweets at the time questioning "why Steam is still taking 30% of gross [when] MasterCard and Visa charge 2-5% per transaction, and CDN bandwidth is around $0.002/GB." Later in the same thread, he laments that "the internet was supposed to obsolete the rent-seeking software distribution middlemen, but here's Facebook, Google, Apple, Valve, etc." Expanding on these public thoughts in a private response to Newell, Sweeney allows that there was "a good case" for Steam's 30 percent platform fee "in the early days." But he also argues that the fee is too high now that Steam's sheer scale has driven down operating costs and made it harder for individual games to get as much marketing or user acquisition value from simply being available on the storefront.

Sweeney goes on to spitball some numbers showing how Valve's fees are contributing to the squeeze all but the biggest PC game developers were feeling on their revenues: "If you subtract out the top 25 games on Steam, I bet Valve made more profit from most of the next 1,000 than the developer themselves made. These guys are our engine customers and we talk to them all the time. Valve takes 30% for distribution; they have to spend 30% on Facebook/Google/Twitter [user acquisition] or traditional marketing, 10% on server, 5% on engine. So, the system takes 75% and that leaves 25% for actually creating the game, worse than the retail distribution economics of the 1990's." Based on experience with Fortnite and Paragon, Sweeney estimates that the true cost of distribution for PC games that sell for $25 or more in Western markets "is under 7% of gross." That's only slightly lower than the 12 percent take Epic would establish for its own Epic Games Store the next year.

The second email chain (PDF) revealed in the lawsuit started in November 2018, with Sweeney offering Valve a heads-up on the impending launch of the Epic Games Store that would come just weeks later. While that move was focused on PC and Mac games, Sweeney quickly pivots to a discussion of Apple's total control over iOS, the subject at the time of a lawsuit whose technicalities were being considered by the Supreme Court. Years before Epic would bring its own case against Apple, Sweeney was somewhat prescient, noting that "Apple also has the resources to litigate and delay any change [to its total App Store control] for years... What we need right now is enough developer, press, and platform momentum to steer Apple towards fully opening up iOS sooner rather than later." To that end, Sweeney attempted to convince Valve that lowering its own platform fees would hurt Apple's position and thereby contribute to the greater good: "A timely move by Valve to improve Steam economics for all developers would make a great difference in all of this, clearly demonstrating that store competition leads to better rates for all developers. Epic would gladly speak in support of such a move anytime!"

In a follow-up email on December 3, just days before the Epic Games Store launch, Sweeney took Valve to task more directly for its policy of offering lower platform fees for the largest developers on Steam. He offered some harsh words for Valve while once again begging the company to serve as a positive example in the developing case against Apple: "Right now, you assholes are telling the world that the strong and powerful get special terms, while 30% is for the little people. We're all in for a prolonged battle if Apple tries to keep their monopoly and 30% by cutting backroom deals with big publishers to keep them quiet. Why not give ALL developers a better deal? What better way is there to convince Apple quickly that their model is now totally untenable?" After being forwarded the message by Valve's Erik Johnson, Valve COO Scott Lynch simply offered up a sardonic "You mad bro?"

An anonymous reader quotes a report from The Verge: When Nintendo sued the developers of Yuzu out of existence on March 4th, it wasn't just an attack on the leading way to play Nintendo Switch games without a Switch. It was a warning to anyone building a video game emulator. Seven developers have now stepped away from projects, are shutting them down, or have left the emulation scene entirely. Of those that remain, many are circling the wagons, getting quieter and more careful, trying not to paint targets on their backs. Four developers declined to talk to The Verge, telling me they didn't want to draw attention. One even tried to delete answers to my questions after we'd begun, suddenly scared of attracting press.

Not everyone is so afraid. Four other emulator teams tell me they're optimistic Nintendo won't challenge them, that they're on strong legal footing, and that Yuzu may have been an unusually incriminating case. One decade-long veteran tells me everyone's just a bit more worried. But when I point out that Nintendo didn't have to prove a thing in court, they all admit they don't have money for lawyers. They say they'd probably be forced to roll over, like Yuzu, if the Japanese gaming giant came knocking. "I would do what I'd have to do," the most confident of the four tells me. "I would want to fight it... but at the same time, I know we exist because we don't antagonize Nintendo."

There's a new meme where Yuzu is the mythical Hydra: cut off one head, and two more take its place. It's partly true in how multiple forks of Yuzu (and 3DS emulator Citra) sprung up shortly after their predecessors died: Suyu, Sudachi, Lemonade, and Lime are a few of the public names. But they're not giving Nintendo the middle finger: they're treating Nintendo's lawsuit like a guidebook about how not to piss off the company. In its legal complaint, Nintendo claimed Yuzu was "facilitating piracy at a colossal scale," giving users "detailed instructions" on how to "get it running with unlawful copies of Nintendo Switch games," among other things. Okay, no more guides, say the Switch emulator developers who spoke to me. They also say they're stripping out some parts of Yuzu that made it easier to play pirated games. As Ars Technica reported, a forked version called Suyu will require you to bring the firmware, title.keys, and prod.keys from your Switch before you can decrypt and play Nintendo games. Only one of those was technically required before. (Never mind that most people don't have an easily hackable first-gen Switch and would likely download these things off the net.) The developer of another fork tells me he plans to do something similar, making users "fend for yourself" by making sure the code doesn't auto-generate any keys.

Most developers I spoke to are also trying to make it clear they aren't profiting at Nintendo's expense. One who initially locked early access builds behind a donation page has stopped doing that, making them publicly available on GitHub instead. The leader of another project tells me nothing will ever be paywalled, and for now, there's "strictly no donation," either. When I ask about the Dolphin Emulator, which faced a minor challenge from Nintendo last year, I'm told it publicly exposes its tiny nonprofit budget for anyone to scrutinize. But I don't know that these steps are enough to prevent Nintendo from throwing around its weight again, particularly when it comes to emulating the Nintendo Switch, its primary moneymaker. Since Yuzu's shut down, a slew of other emulators left the scene. The include (as highlighted by The Verge):

- The Citra emulator for Nintendo 3DS is gone
- The Pizza Boy emulators for Nintendo Game Boy Advance and Game Boy Color are gone
- The Drastic emulator for Nintendo DS is free for now and will be removed
- The lead developer of Yuzu and Citra has stepped away from emulation
- The lead developer of Strato, a Switch emulator, has stepped away from emulation
- Dynarmic, used to speed up various emulators including Yuzu, has abruptly ended development
- One contributor on Ryujinx, a Switch emulator, has stepped away from the project
- AetherSX2, a PS2 emulator, is finally gone (mostly unrelated; development was suspended a year ago)

Roman Sterlingov, the founder of a $400 million crypto-mixing service called Bitcoin Fog, has been convicted of money laundering in a United State District Court on Tuesday. Other charges include money laundering conspiracy, operating an unlicensed money-transmitting business, and violations of the D.C. Money Transmitters Act. CoinTelegraph reports: Sterlingov, however, had argued throughout the trial that he was only a user of the service, and not its operator. His attorney, Tok Ekeland said in a March 12 X post that his team will appeal the verdict. According to evidence presented at the trial, Sterlingov operated Bitcoin Fog from October 2011 to April 2021, which acted as a money laundering service for "criminals seeking to hide their illicit proceeds from law enforcement."

The service moved over 1.2 million Bitcoin over the decade-long operation -- worth $400 million at the time of the transactions -- with the bulk of cryptocurrency coming from darknet marketplaces tied to narcotics, computer fraud abuse and identity theft, the government said. Bitcoin Fog also served distributors of child sexual abuse material. Evidence used to convict Sterlingov found that the "vast majority" of crypto deposited to his crypto exchange accounts came from "Bitcoin clusters" associated with Bitcoin Fog. "Evidence presented at trial clearly showed that the defendant laundered hundreds of millions of illicit funds from the dark web through Bitcoin Fog in an attempt to conceal the origin of those funds," said Internal Revenue Service (IRS) Criminal Investigation Chief Jim Lee.

According to a new analysis of the subscription app economy from mobile subscription toolkit provider RevenueCat, the top 5% of apps generate 200 times the revenue of the bottom quartile after their first year, while the median monthly revenue an app generates after 12 months is under $50 USD. From a report: The "State of Subscription Apps" report offers a bird's-eye view into the subscription app universe, as RevenueCat has nearly 30,000 apps using its platform's tools to manage their monetization. Outside of Apple and Google, that makes RevenueCat the largest collection of subscription app developers on one platform.

This report specifically looks at data from over 29,000 apps and over 18,000 developers who collectively generate over $6.7 billion in tracked revenue and have over 290 million subscribers. After crunching its data, the company found that only 17.2% of apps will reach even $1,000 in monthly revenue, but after they hit that point, the odds of them growing further increase.

An article in Inc notes a "wild projection" in Reddit's SEC filing that Reddit's global market opportunity by 2027 is $1.4 trillion." Some of the numbers lead back to a single individual: Sam Altman. The co-founder and chief executive of ChatGPT-maker OpenAI owns an 8.7 percent stake in Reddit, more than its co-founder and CEO, Steve Huffman, who owns 3.3 percent... Altman, through various funds and holding companies he owns or manages, controls more than a million shares of Reddit at $60 million in aggregate purchase price — and holds more than 9 percent of voting rights...

Discussing Reddit's future, financial analyst and journalist Herb Greenberg recently told CNBC, "This is an AI play."
But the senior investing editor for Kiplinger.com argues that retail investors "may want to hold tight before rushing out to buy the Reddit IPO." While IPO stocks tend to have strong first-day showings, returns for the first year are generally weak, says the team of analysts at Trivariate Research, a market research firm based in New York. And since 2020, "the average IPO has lagged its industry average by 30% over the subsequent three years following its first closing price..."

Other commenters have noted that Reddit's allotment of shares to select Redditors could lower demand on the first day of trading, which would work against any IPO pop.
"Over the past few years, there have been a bunch of IPOs in the U.S. in which overhyped names enjoyed flashy stock-market debuts only to drop sharply soon after," notes the Street. Notable examples include Coinbase, which plummeted by almost 90% after its debut, Robinhood, still down 53% since its IPO, and Rivian, down over 91% since its debut. However, it's crucial to note that all of these IPOs occurred in 2021 amid market euphoria fueled by low interest rates, significant economic stimulus, and the lingering effects of the Covid-19 pandemic. Although the current macroeconomic landscape differs from three years ago, valuations of tech and growth stocks remain stretched.
Kiplingers.com concludes it "boils down to your own personal investing goals and risk tolerance. If you do decide to buy Reddit stock when it first begins trading, do so in a small amount that you can afford to lose."

But they also cite analysis from David Trainer, CEO of New Constructs, a research firm powered by artificial intelligence. "Reddit's IPO marks the return of the junk IPO," Trainer wrote in Forbes. "[The valuation] implies that Reddit will grow its user base to 26 times current levels, which would be nearly five times the size of [Snapchat-maker] Snap, and a highly unlikely feat. Reddit looks overvalued, and we think investors should pass on this IPO."

Trainer writes: [T]he company has never been profitable and should not be a publicly traded company... I think the company may never monetize its platform without angering its users and the entire premise of Reddit is user-generated content. This business model is inescapably built on a catch-22: make money or please users... Reddit looks overvalued, and I think investors should pass on this IPO.
Buyers and analysts told the site Marketing Brew "that they see the platform as nice-to-have, but that it is not an essential part of their media plans, like Meta or Google are." "They've always been solidly in the second or third tier of social networks," alongside Snap, Pinterest, and X, Brian Wieser, a former GroupM exec who's now author of the industry newsletter Madison and Wall, told Marketing Brew.
Yet Trainer notes that "98% of Reddit's revenue in 2023 came from third-party advertising on the site and 28% of all revenue came from ten customers," and "Reddit's cost of revenue, sales & marketing, general & administrative, and research & development costs were 117% of revenue in 2023."

Trainer concludes "Reddit is nowhere near breakeven. Reddit is an unprofitable social media company fighting for users."

Bloomberg adds that the subreddit r/WallStreetBets "has threatened to bet against the stock, with many people noting that the company still loses money two decades into its existence. (Reddit lost $90.8 million last year, down from $158.6 million the year before.)" Some have complained that the invitation to invest fails to make up for the unpaid labor they've invested making the site work... In 2021 the platform's WallStreetBets forum ignited a meme-stock frenzy, propelling skyward the stocks of nostalgic but struggling companies like GameStop Corp. and AMC Entertainment Holdings Inc. and sending shockwaves through the financial industry... When it goes public, the platform that invented meme stocks runs the risk of becoming one itself.

Reddit noted the possibility as a risk in its IPO filing. "Given the broad awareness and brand recognition of Reddit, including as a result of the popularity of r/wallstreetbets among retail investors," the company warned that its stock could "experience extreme volatility ... which could cause you to lose all or part of your investment if you are unable to sell your shares at or above the initial offering price."

Users on WallStreetBets got a kick out of the fact that the company listed the forum as a risk factor, posting about it with a sly smiling emoji...
Meanwhile, reports that marketers are infiltrating subreddits have been confirmed. Over 200 businesses have "integrated Reddit Pro into their digital strategies," reports Search Engine Land, including "well-known names such as Taco Bell, the NFL, and The Wall Street Journal...

"During the initial alpha testing phase with approximately 20 businesses, Reddit reported its Pro partners, on average, generated 11 additional posts and comments per month."

America's Department of Justice "has launched a criminal investigation into the Boeing jetliner blowout that left a gaping hole on an Alaska Airlines plane," reports the Associated Press, citing a report from the Wall Street Journal.

"As part of the new investigation, the Justice Department has interviewed pilots and flight attendants on the flight..." the Journal reports. "Investigators have taken steps to begin notifying Alaska passengers on board during the Jan. 5 accident that they are potential crime victims in the case, according to a document viewed by The Wall Street Journal." The probe would inform the Justice Department's review of whether Boeing complied with an earlier settlement that resolved a federal investigation following two fatal 737 MAX crashes in 2018 and 2019. Investigations don't always result in formal charges of wrongdoing.

Separately, investigators with the Transportation Department's Inspector General's office in recent weeks have been seeking to interview Federal Aviation Administration officials in the Seattle area who oversee Boeing's manufacturing...

If the Justice Department finds that Boeing violated the terms of the 2021 settlement, the company could face prosecution on the original count of defrauding the U.S. Alternatively, the government could seek to extend the probationary, three-year agreement that requires Boeing to update the Justice Department on its compliance improvements.
In a related development, Boeing "has acknowledged in a letter to Congress that it cannot find records for work done on the door panel of the Alaska Airlines plane," reports the Associated Press: "We have looked extensively and have not found any such documentation," Ziad Ojakli, Boeing executive vice president and chief government lobbyist, wrote to Sen. Maria Cantwell on Friday. The company said its "working hypothesis" was that the records about the panel's removal and reinstallation on the 737 MAX final assembly line in Renton, Washington, were never created, even though Boeing's systems required it.
Not having the documents "raises concerns about quality assurance, quality management safety management systems within Boeing," said the chair of the National Transportation Safety Board earlier this week.

"This is a serious, potentially illegal, lapse in standard aviation manufacturing quality processes," reports the Seattle Times.

Meanwhile, America's National Transportation Safety Board is also investigating a United Airlines Boeing 737-8 flight "that last month experienced 'stuck' rudder pedals," reports Axios, "after touching down in Newark, per a preliminary report released Thursday." The captain reported that during the landing rollout, which is after touchdown but before the plane slows to taxi speed, the pedals did not respond to foot pressure and remained stuck. "The captain used the nosewheel steering tiller to keep the airplane near the runway centerline while slowing to a safe taxi speed before exiting the runway onto a high-speed turn-off," the report states.

Shortly after, the rudder pedals began to operate normally, the captain said. There were no injures and the airplane was removed from service for maintenance and troubleshooting. An inspection found no obvious malfunctions, said the National Transportation Safety Board. After removing the rudder system components, United conducted a second flight test and found the rudder controls operated normally, per the report. "With coordination with United, the issue was successfully resolved with the replacement of three parts and the airplane returned to service last month," Boeing said in a statement, adding that this is the only report of such an issue that they've received for the 737 MAX fleet.

The investigation is ongoing.

One year after Silicon Valley Bank's collapse and seizure, "Regional bank stocks remain volatile compared to other types of financial institutions," reports the Observer, "indicating investors' lingering worries about the sector."

But not everyone suffered: Benefiting from the crisis were big players, like JPMorgan Chase. After acquiring First Republic's $212.6 billion in loans and $92.4 billion in deposits for just over $10 billion in May 2023, JPMorgan saw a 67 percent year-over-year growth in profits that quarter. Overall, larger commercial banks saw inflows as customers sought safer institutions to hold their money.
And what happened to Silicon Valley Bank? Axios reports: Today, SVB says it's still the same bank customers loved, but with better risk management and some other tweaks, like smaller deposit requirements for startup borrowers, president Marc Cadieux told Axios last month. 81% of SVB's clients from a year ago are still banking with SVB, according to Cadieux, with "thousands of them" returning after initially switching out...

"I think there was an inference that this was a regional bank crisis, but it really wasn't — those were niche banks," Citizens CEO Bruce Van Saun tells Axios. "The failure was is in governance and the business model."
Citizens is America's 14th largest bank, and as its CEO, Van Saun was asked by CNN what caused 2023's failures at other banks: CEO Van Saun: Both of those banks [Signature Bank and Silicon Valley Bank] went from $50 billion in assets to over $200 billion in four years. They grew too fast, took in a high percentage of uninsured deposits, had very concentrated, narrow customer bases so they were susceptible to [deposit] flight risk. They also borrowed short and invested long, which is a cardinal sin of banking. They didn't manage their interest rate risk well because they didn't have the muscle that you would have if you grew slowly over the years and were heavily regulated like bigger banks like ourselves.

CNN: Who deserves more blame: failed banks' management teams for not ensuring proper guardrails were in place or financial supervisors whose jobs are to identify red flags?

Van Saun: It's a joint failure...

CNN: [W]hat about commercial real estate? The number of people working in offices is much, much lower than it was pre-pandemic. Are you bracing for another chapter of banking stress? What is Citizens doing to cushion against potential high losses in the sector given close to one-fifth of your loans are there?

Van Saun: You have to look under the covers. The nature of our portfolio matters.

Within commercial real estate, industrial, warehouse and distribution space is fine. Multi-family homes are generally fine. When it comes to offices, we have certain pockets of life science businesses like lab research facilities that are super safe because they never had to close during Covid. [Loans to general office buildings are riskier though, he said.] We go through all of that and we say we'll lose some money here, but we're not going to lose our shirt and we've put up big reserves against them. We're working on a loan-by-loan basis with our most senior people. I think it's a well-managed process.

A recent survey found that academic organizations are failing to preserve digital material -- "including science paid for with taxpayer money," reports Ars Technica, highlighting the need for improved archiving standards and responsibilities in the digital age. From the report: The work was done by Martin Eve, a developer at Crossref. That's the organization that organizes the DOI system, which provides a permanent pointer toward digital documents, including almost every scientific publication. If updates are done properly, a DOI will always resolve to a document, even if that document gets shifted to a new URL. But it also has a way of handling documents disappearing from their expected location, as might happen if a publisher went bankrupt. There are a set of what's called "dark archives" that the public doesn't have access to, but should contain copies of anything that's had a DOI assigned. If anything goes wrong with a DOI, it should trigger the dark archives to open access, and the DOI updated to point to the copy in the dark archive. For that to work, however, copies of everything published have to be in the archives. So Eve decided to check whether that's the case.

Using the Crossref database, Eve got a list of over 7 million DOIs and then checked whether the documents could be found in archives. He included well-known ones, like the Internet Archive at archive.org, as well as some dedicated to academic works, like LOCKSS (Lots of Copies Keeps Stuff Safe) and CLOCKSS (Controlled Lots of Copies Keeps Stuff Safe). The results were... not great. When Eve broke down the results by publisher, less than 1 percent of the 204 publishers had put the majority of their content into multiple archives. (The cutoff was 75 percent of their content in three or more archives.) Fewer than 10 percent had put more than half their content in at least two archives. And a full third seemed to be doing no organized archiving at all. At the individual publication level, under 60 percent were present in at least one archive, and over a quarter didn't appear to be in any of the archives at all. (Another 14 percent were published too recently to have been archived or had incomplete records.)

The good news is that large academic publishers appear to be reasonably good about getting things into archives; most of the unarchived issues stem from smaller publishers. Eve acknowledges that the study has limits, primarily in that there may be additional archives he hasn't checked. There are some prominent dark archives that he didn't have access to, as well as things like Sci-hub, which violates copyright in order to make material from for-profit publishers available to the public. Finally, individual publishers may have their own archiving system in place that could keep publications from disappearing. The risk here is that, ultimately, we may lose access to some academic research.

As reported by 404 Media, the New York Times has issued hundreds of copyright takedown requests against Wordle clones "in which it asserts not just ownership over the Wordle name but over the broad concepts and mechanics of the word game, which includes its '5x6 grid' and 'green tiles to indicate correct guesses.'" From the report: The Times filed at least three DMCA takedown requests with coders who have made clones of Wordle on GitHub. These include two in January and, crucially, a new DMCA filed this week against Chase Wackerfuss, the coder of a repository called âoeReactle,â which cloned Wordle in React JS (JavaScript). The most recent takedown request is critical because it not only goes after Reactle but anyone who has forked Reactle to create a different spinoff game; an archive of the Reactle code repository shows that it was forked 1,900 times to create a diverse set of games and spinoffs. These include Wordle clones in dozens of languages, crossword versions of Wordle, emoji and bird versions of world, poker and AI spinoffs, etc.

"I write to submit a revised DMCA Notice regarding an infringing repository (and hundreds of forked repositories) hosted by Github that instruct users how to infringe The New York Times Co.'s ('The Times') copyright in its immensely popular Wordle game and create knock-off copies of the same. Unfortunately, hundreds of individuals have followed these instructions and published infringing Wordle knock-off games that The Times has spent the past month removing, including off of Github's websites," the DMCA takedown request against Reactle reads. "The Times's Wordle copyright includes the unique elements of its immensely popular game, such as the 5x6 grid, green tiles to indicate correct guesses, yellow tiles to indicate the correct letter but the wrong place within the word, and the keyboard directly beneath the grid. This gameplay is copied exactly in the repository, and the owner instructs others how to knock off the game and create an identical word game," it adds.

The DMCA request then says that GitHub must delete forks of the repository, which it writes were "infringing to the same extent as the parent repository" and which it says were made in what was "clearly bad faith." [...] The DMCA takedown requests are particularly notable because they come at a time when the New York Times is financially thriving, while many of its competitors are losing money, laying people off, and shutting down. The Times is thriving in part because Wordle, the crossword puzzle, and its recipe apps are juggernauts. The company has been aggressively expanding its "Games" business with Wordle, Connections, and a brand new word search game called Strands. The New York Times issued a statement in response: "The Times has no issue with individuals creating similar word games that do not infringe The Times's 'Wordle' trademarks or copyrighted gameplay. The Times took action against a GitHub user and others who shared his code to defend its intellectual property rights in Wordle. The user created a 'Wordle clone' project that instructed others how to create a knock-off version of The Times's Wordle game featuring many of the same copyrighted elements. As a result, hundreds of websites began popping up with knock-off 'Wordle' games that used The Times's 'Wordle' trademark and copyrighted gameplay without authorization or permission."

Researchers have developed a way to circumvent safety measures built into large language models (LLMs) using ASCII Art, a graphic design technique that involves arranging characters like letters, numbers, and punctuation marks to form recognizable patterns or images. Tom's Hardware reports: According to the research paper ArtPrompt: ASCII Art-based Jailbreak Attacks against Aligned LLMs, chatbots such as GPT-3.5, GPT-4, Gemini, Claude, and Llama2 can be induced to respond to queries they are designed to reject using ASCII art prompts generated by their ArtPrompt tool. It is a simple and effective attack, and the paper provides examples of the ArtPrompt-induced chatbots advising on how to build bombs and make counterfeit money. [...]

To best understand ArtPrompt and how it works, it is probably simplest to check out the two examples provided by the research team behind the tool. In Figure 1 [here], you can see that ArtPrompt easily sidesteps the protections of contemporary LLMs. The tool replaces the 'safety word' with an ASCII art representation of the word to form a new prompt. The LLM recognizes the ArtPrompt prompt output but sees no issue in responding, as the prompt doesn't trigger any ethical or safety safeguards.

Another example provided [here] shows us how to successfully query an LLM about counterfeiting cash. Tricking a chatbot this way seems so basic, but the ArtPrompt developers assert how their tool fools today's LLMs "effectively and efficiently." Moreover, they claim it "outperforms all [other] attacks on average" and remains a practical, viable attack for multimodal language models for now.

EA CEO Andrew Wilson believes generative AI will "revolutionize" the gaming industry over the next five years. He predicts that the technology will allow for more efficient content creation, reducing development time from months to days. From a report: Greater efficiency coupled with "deeper, more immersive experiences" will lead to significant audience expansion over the next few years and provide a "multi-billion dollar" growth opportunity, he said. Wilson said that in the past it might take six months to build an in-game sports stadium. Over the last 12 months, that time has shrunk to six weeks, and over the coming years it could maybe be cut to six days.

And while FIFA 23 has 12 run cycles for how the players move in the game, EA Sports FC 24 has 1,200 created with generative AI. Over the next five years, Wilson hopes that generative AI will make EA's development 30% more efficient, help grow its 700 million-strong player base by "at least" 50%, and lead to players spending 10-20% more money on its games. "What we've seen every time there's been a meaningful technological advancement in media and in technology, where you are able to democratise an industry and hand it over to the population at large, incredible things happen," he said.

During a recent Morgan Stanley conference, Warner Bros. Discovery gaming boss J.B. Perrette discussed some of the company's strategy for gaming going forward, and it includes more live-service, mobile, and free-to-play games. From a report: He said, "We're doubling down on games as an area where we think there is a lot more growth opportunity that we can tap into with the IP that we have and some of the capabilities we have on the studio where we're uniquely positioned as both a publisher and a developer of games."

Perrette said WBD's recent gaming output has focused on AAA games for console, and that's great when a game like Hogwarts Legacy sells 22 million copies and becomes the best-selling game of the year, but this kind of success is never guaranteed in what Perrette said was a "volatile" market. He pointed out that one of WBD's latest big games, Suicide Squad: Kill the Justice League, was a disappointment for the company.

So the plan going forward, he said, is to help reduce volatility by focusing on core franchises and bringing at least some of them to the mobile and free-to-play space, as well as continuing to invest in live-service games that people play--and spend money on--over a long period of time. This will help WBD generate more consistent revenue, he said, going on to tease that WBD had some new mobile free-to-play games coming this year. Also worth noting is that just because WBD may push into new places, that doesn't necessarily mean it will stop making big single-player AAA games.

Carriers have gotten stricter about how many items you can take on board, no matter how small they are. From a report: Fanny packs. Cross-body bags. Shopping bags. Pillows and blankets. The Southwest Airlines gate agent rattled off so many items that counted toward the two carry-on bag limit on my flight to Baltimore, I thought it might be a playful jab at Spirit and Frontier and their rigid carry-on policing to collect more fees. But this was no joke. Southwest quietly began cracking down on carry-on bags on Feb. 22, ahead of the spring and summer travel rush, advising gate agents of the changes in a memo. This crackdown isn't about bag size. It is about how many bags you have.

Southwest isn't alone in putting passengers' personal items in its crosshairs as a way to save precious bin space and speed up boarding. Delta and United agents have also recently asked me to stuff my small Lululemon bag in my backpack. One American Airlines frequent flier told me he watched gate agents in Sacramento, Calif., and Dallas list a litany of items that count as a personal item on weekend flights to Nashville, Tenn., last month. Carting all your stuff to the gate can save you time and often saves money, especially with some airlines' new, higher checked-baggage fees. Delta joined the club on Tuesday, announcing prices of $35 for your first bag and $45 for your second. But testing airlines' carry-on limits is now more likely to backfire, and lose you precious time as airlines make you consolidate items or check a bag at the gate.

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

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

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

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

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

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

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

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

Researchers at UC Riverside estimated last year... that global AI demand could cause data centers to suck up 1.1 trillion to 1.7 trillion gallons of freshwater by 2027. A separate study from a university in the Netherlands, this one peer-reviewed, found that AI servers' electricity demand could grow, over the same period, to be on the order of 100 terawatt hours per year, about as much as the entire annual consumption of Argentina or Sweden... [T]ensions over data centers' water use are cropping up not just in Arizona but also in Oregon, Uruguay, and England, among other places in the world.
The article points out that Microsoft "is transitioning some data centers, including those in Arizona, to designs that use less or no water, cooling themselves instead with giant fans." And an analysis (commissioned by Microsoft) on the impact of one building said it would use about 56 million gallons of drinking water each year, equivalent to the amount used by 670 families, according to the article. "In other words, a campus of servers pumping out ChatGPT replies from the Arizona desert is not about to make anyone go thirsty."

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

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

This challenge is underscored by the Global Anti-Scam Alliance, which reported that nearly $1 trillion was lost to online fraud in 2022. Tazama challenges this status quo by providing a powerful, scalable, and cost-effective alternative that democratizes access to advanced financial monitoring tools that can help combat fraud... The solution's architecture emphasizes data sovereignty, privacy, and transparency, aligning with the priorities of governments worldwide. Hosted by LF Charities, which will support the operation and function of the project, Tazama showcases the scalability and robustness of open source solutions, particularly in critical infrastructure like national payment switches.
Jim Zemlin, executive director of the Linux Foundation, described their reaction as "excited to see an open source solution that not only enhances financial security but also provides a platform for our community to actively contribute to a project with broad societal impacts."

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

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

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

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

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

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

Turns out, "scary people stealing things" is a boogeyman that feels more tangible than the obscure machinations of a faltering corporation.
The San Francsico Standard itself was funded in part by billionaire venture capitalist Michael Moritz of Sequoia Capital...

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

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

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

You have the legal right to say no when TurboTax asks for your permission to "share your data" or use your tax information to "improve your experience...."
The article complains that granting permission allows TurboTax to share details with "sibling" companies "such as your salary, the amount of your tax refund, whether you received a tax break for student loans and the day you printed your tax return..."

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

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

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

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

Workers had about 20 minutes to gather their belongings and leave the premises before they were considered trespassing.
Video footage of the moment is embedded at the top of the article. "I was speechless, shocked," said the contractor who'd been speaking. He told the Washington Post "I didn't know what to do. But angered, that was the main feeling." The council meeting was streaming live online and has since spread on social media. The contractors view the layoff as retaliation for unionizing, but Google and information technology subcontractor Cognizant said it was the normal end of a business contract.

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

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

Last year, the National Labor Relations Board ruled that Cognizant and Google are joint employers of the contractors. In January, the NLRB sent a cease-and-desist letter to both employers for failing to bargain with the union. Since then the issue of joint employment, which would ultimately determine which company is responsible for bargaining, has landed in an appeals court and has yet to be ruled on.
"Workers say they don't have sick pay, receive minimal benefits and are paid as little as $19 an hour," according to the article, "forcing some to work multiple jobs to make ends meet." Sam Regan, a data analyst contractor for YouTube Music, told the Washington Post that he was one of the last workers to leave the meeting where the layoffs were announced.

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