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Conservative cell carrier Patriot Mobile hit by data breach | TechCrunch


U.S. cell carrier Patriot Mobile experienced a data breach that included subscribers’ personal information, including full names, email addresses, home ZIP codes and account PINs, TechCrunch has learned. Patriot Mobile, which reportedly has fewer than 100,000 subscribers, bills itself as “America’s only Christian conservative wireless provider and our mission is to passionately defend our God-given […]

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Tesla shareholder sweepstakes and EV layoffs hit Lucid and Fisker | TechCrunch


Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Okay, okay — remember last week when I suggested Tesla was being a bit extra in its bid to convince shareholders to vote in favor of relocating […]

© 2024 TechCrunch. All rights reserved. For personal use only.


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VC fund performance is down sharply — but it may have already hit its lowest point | TechCrunch


Venture capital has been hit hard by souring macroeconomic conditions over the past few years and it’s not yet clear how the market downturn affected VC fund performance. But recent data from the San Francisco Employees’ Retirement System (SFERS) give us something to chew on. SFERS’s venture portfolio recorded a -.9% internal rate of return […]

© 2024 TechCrunch. All rights reserved. For personal use only.


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Razer hit with $1.1M FTC fine over glowing ‘N95’ mask COVID claims | TechCrunch


The Federal Trade Commission hit Razer with a $1.1 million fine Tuesday. The order claims that the gaming accessory maker misled consumers by claiming that its flashy Zephyr mask was certified as N95-grade.

“These businesses falsely claimed, in the midst of a global pandemic, that their face mask was the equivalent of an N95 certified respirator,” FTC Bureau of Consumer Projection Director Samuel Levine noted in a statement. “The FTC will continue to hold accountable businesses that use false and unsubstantiated claims to target consumers who are making decisions about their health and safety.”

Razer has predictably pushed back against the commission’s claims.

“We disagree with the FTC’s allegations and did not admit to any wrongdoing as part of the settlement,” a representative from the company said in a statement to TechCrunch. “It was never our intention to mislead anyone, and we chose to settle this matter to avoid the distraction and disruption of litigation and continue our focus on creating great products for gamers. Razer cares deeply about our community and is always looking to deliver technology in new and relevant ways.”

The company went on to suggest that the complaint was cherrypicked, adding that it went out of its way to refund customers and end sales of the Zephyr.

“The Razer Zephyr was conceived to offer a different and innovative face covering option for the community,” it notes. “The FTC’s claims against Razer concerned limited portions of some of the statements relating to the Zephyr. More than two years ago, Razer proactively notified customers that the Zephyr was not a N95 mask, stopped sales, and refunded customers.”

The FTC is also officially barring sales of the mask and “making COVID-related health misrepresentations or unsubstantiated health claims about protective health equipment.” It goes a step further, “prohibit[ing] the defendants from representing the health benefits, performance, efficacy, safety, or side effects of protective goods and services (as defined in the proposed order), unless they have competent and reliable scientific evidence to support the claims made.”

The filing suggests that Razer intentionally deceived consumers into believing that the $100 mask would protect against COVID. Certainly the virus was very much top of mind when the product first dropped in October 2021.

The order is currently awaiting approval and signature from a District Court judge.


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Robotic Automations

Devastated by his image being posted to a porn site, this founder hit on an AI startup idea | TechCrunch


Realising that a former partner had, unbeknownst to him, put previously private, intimate videos of them onto a porn site, tech founder Dan Purcell felt devastated. He resolved to come up with a solution to help prevent such violations happening again. His Ceartas startup has now raised $4.5 million in a Seed round from European VC Earlybird, as well as Upside VC, a fund established by The Sidemen, the YouTube influencer group.

Ceartas DMCA, was founded in 2021 by Purcell (CEO) and Jonny Smyth (CTO), to apply AI to brand protection and anti-piracy services for content creators and brands.

It does this by de-indexing content and automatically issuing legal notices for pirated content.

Leveraging it’s own proprietary AI platform, the company scans digital platforms to identify and eliminate unauthorised content, including deepfakes.

The platform claims to significantly the problematic content’s visibility on Google by 98%. It also claims to be able to tackle deepfakes.

Based out of Dublin and Berlin, the company plans to open an office in Los Angeles office and ha now signed partnerships with platforms such as OnlyFans and Fanfix, (a content monetization platform for creators),

Over a call, Purcell told me: “I was dating a girl who was in the tech industry, and she asked me if I wanted to make some personal videos with her. About four or five years later, they all ended up on the internet, and I was the last one to find out,” he told me. “My then girlfriend slide her phone across the counter to me with the videos on the phone. It was pretty horrible.”

He looked into services that could help but most were aimed at large enterprises rather than creators.

“There wasn’t really anything out there to help individuals. So being an engineer, I built something myself… It will then send a legal copyright notice under the DMCA. So that’s how it started us inception back in 2020. A year later, the content creator economy was booming and the app took off.”

He told me that right now it’s aimed at YouTubers and Instagramers, but “as we move into enterprise we will be facilitating the service to take care of physical goods, such as counterfeit merchandise. We’ve used the content creators to build out that model, essentially, build up a data set.”

“Our service is fully automated. It’s powered by AI. And when we look at the Google transparency reports, which I believe was forwarded over to you, you can see [other platforms] have a much lower success rate overall. This can put the content creator into a difficult legal situation because you can get into trouble by sending the wrong DMCA notices.

He added that the firm has a provisional patent on the model as it doesn’t rely on any third party technology.

As well as working with influencer like the Sidemen, they are also working with physical goods brands that put their content onto social media.

The startup chose to work with Earlybird, said Purcell, because it had been pro-actively looking for a company in this brand protection space. : “We didn’t actually go out and pitch them they actually found us.. They’d been researching this since 2019. And they couldn’t find anybody who could scale it monetize it.. So when we pitched them, they pitched us back. We really felt that these guys understood the problem, because they’re very technical and data focused.

Andre Retterath, Partner at Earlybird Venture Capital, added in a statement: “Across media and the entertainment industry, individuals and enterprises alike are facing unprecedented piracy challenges… Training modern AI large language models (LLM) also opened the floodgates for the use and dissemination of unauthorised content.”

However, Ceartas is not the only player in this space. It has four main competitors in the brand protection space:

Rulta is a platform for protecting digital content and brand copyright infringements, which is used by Twitch, OnlyFans, Twitter/X and Patreon, among others. BranditScan is another which offers similar services.

In the B2B brand protection space space, Red Points out of Barcelona has raised $106.6 million, while Vobile, which caters to large enterprises in movies and TV content, has raised $181.6M.

All companies which submit DMCA notices, especially to Google, are publicly identified and scored based on the accuracy of the removal. This information is part of a public repository called the Google Transparency Report, and also the Lumen Database. On Google Web (they don’t score image removals), Ceartas is listed as attaing 90 to 100% of URLs delisted.

On Google’s transparency index, Rulta is at 63%, BranditScan at 54%, Red Points at 31%, and Vobile at 42%.

These numbers suggest that the AI-driven approach is likely to take over from older de-listing methods in the near future.

Ceartas’ claim is that it automates the de-listing process and can identify deepfakes quickly.

Purcell said: “We’ve essentially built out our own dataset using ML. The AI is contextually aware… The AI will go look at the page. It’ll use things like optical character recognition to look at watermarks, face recognition… are people leaving disparaging comments or sexualized comments. If it’s above 90%, it will automatically send a legal notice. If it’s under 90%. It goes to a copyright specialist for a manual review….The legal notices are written by lawyers. We work with a law firm in LA called Morrison Cooper.”

The recent funding round also draws backing from new angels: Thomas Hesse (former President of Sony Music), Andrej Henkler (10x Founders), Michele Attisani & Niccolo Maisto (Faceit), and Ryan Morrison (Evolved Talent/Morrisson Cooper), among others from the gaming, content creation, music, and television sectors.


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Robotic Automations

ChatGPT's 'hallucination' problem hit with another privacy complaint in EU | TechCrunch


OpenAI is facing another privacy complaint in the European Union. This one, which has been filed by privacy rights nonprofit noyb on behalf of an individual complainant, targets the inability of its AI chatbot ChatGPT to correct misinformation it generates about individuals.

The tendency of GenAI tools to produce information that’s plain wrong has been well documented. But it also sets the technology on a collision course with the bloc’s General Data Protection Regulation (GDPR) — which governs how the personal data of regional users can be processed.

Penalties for GDPR compliance failures can reach up to 4% of global annual turnover. Rather more importantly for a resource-rich giant like OpenAI: Data protection regulators can order changes to how information is processed, so GDPR enforcement could reshape how generative AI tools are able to operate in the EU.

OpenAI was already forced to make some changes after an early intervention by Italy’s data protection authority, which briefly forced a local shut down of ChatGPT back in 2023.

Now noyb is filing the latest GDPR complaint against ChatGPT with the Austrian data protection authority on behalf of an unnamed complainant who found the AI chatbot produced an incorrect birth date for them.

Under the GDPR, people in the EU have a suite of rights attached to information about them, including a right to have erroneous data corrected. noyb contends OpenAI is failing to comply with this obligation in respect of its chatbot’s output. It said the company refused the complainant’s request to rectify the incorrect birth date, responding that it was technically impossible for it to correct.

Instead it offered to filter or block the data on certain prompts, such as the name of the complainant.

OpenAI’s privacy policy states users who notice the AI chatbot has generated “factually inaccurate information about you” can submit a “correction request” through privacy.openai.com or by emailing dsar@openai.com. However, it caveats the line by warning: “Given the technical complexity of how our models work, we may not be able to correct the inaccuracy in every instance.”

In that case, OpenAI suggests users request that it removes their personal information from ChatGPT’s output entirely — by filling out a web form.

The problem for the AI giant is that GDPR rights are not à la carte. People in Europe have a right to request rectification. They also have a right to request deletion of their data. But, as noyb points out, it’s not for OpenAI to choose which of these rights are available.

Other elements of the complaint focus on GDPR transparency concerns, with noyb contending OpenAI is unable to say where the data it generates on individuals comes from, nor what data the chatbot stores about people.

This is important because, again, the regulation gives individuals a right to request such info by making a so-called subject access request (SAR). Per noyb, OpenAI did not adequately respond to the complainant’s SAR, failing to disclose any information about the data processed, its sources, or recipients.

Commenting on the complaint in a statement, Maartje de Graaf, data protection lawyer at noyb, said: “Making up false information is quite problematic in itself. But when it comes to false information about individuals, there can be serious consequences. It’s clear that companies are currently unable to make chatbots like ChatGPT comply with EU law, when processing data about individuals. If a system cannot produce accurate and transparent results, it cannot be used to generate data about individuals. The technology has to follow the legal requirements, not the other way around.”

The company said it’s asking the Austrian DPA to investigate the complaint about OpenAI’s data processing, as well as urging it to impose a fine to ensure future compliance. But it added that it’s “likely” the case will be dealt with via EU cooperation.

OpenAI is facing a very similar complaint in Poland. Last September, the local data protection authority opened an investigation of ChatGPT following the complaint by a privacy and security researcher who also found he was unable to have incorrect information about him corrected by OpenAI. That complaint also accuses the AI giant of failing to comply with the regulation’s transparency requirements.

The Italian data protection authority, meanwhile, still has an open investigation into ChatGPT. In January it produced a draft decision, saying then that it believes OpenAI has violated the GDPR in a number of ways, including in relation to the chatbot’s tendency to produce misinformation about people. The findings also pertain to other crux issues, such as the lawfulness of processing.

The Italian authority gave OpenAI a month to respond to its findings. A final decision remains pending.

Now, with another GDPR complaint fired at its chatbot, the risk of OpenAI facing a string of GDPR enforcements across different Member States has dialed up.

Last fall the company opened a regional office in Dublin — in a move that looks intended to shrink its regulatory risk by having privacy complaints funneled by Ireland’s Data Protection Commission, thanks to a mechanism in the GDPR that’s intended to streamline oversight of cross-border complaints by funneling them to a single member state authority where the company is “main established.”


Software Development in Sri Lanka

Robotic Automations

Tesla layoffs hit high performers, some departments slashed, sources say | TechCrunch


Tesla management told employees Monday that the recent layoffs — which gutted some departments by 20% and even hit high performers — were largely due to poor financial performance, a source familiar with the matter told TechCrunch.

The layoffs were announced to staff just a week before Tesla is scheduled to report its first-quarter earnings. The move comes as Tesla has seen its profit margin narrow over the past several quarters, the result of an EV price war that has persisted for at least a year. The company delivered a record 1.81 million vehicles in 2023. Its margins, however, took a hit after Tesla repeatedly slashed prices in a bid to drum up sales and undercut the competition.

Tesla informed employees that more than 10%, or about 14,000 workers, will be laid off across the global organization that has operations in the United States, Europe and China. In a regulatory filing, Tesla referred to the layoffs as a “company-wide restructuring.” The layoffs, which affected employees across all departments and seniority levels, were made to reduce costs and increase productivity to prepare for its “next phase of growth,” according to an internal email from CEO Elon Musk that TechCrunch has viewed.

High performers also cut

Many of the laid-off employees were high performers, according to two sources who spoke to TechCrunch on condition of anonymity. One source expressed shock at the number of talented employees cut and noted that many of those affected were working on projects that have fallen lower on Tesla’s priority list. The source declined to specify which projects.

Some departments saw layoffs beyond the 10% outlined in the companywide email, according to sources. One manager told TechCrunch that 20% of their employees were cut.

“I lost 20% of my team, some really good players too,” they said.

The shakeup also comes as Musk continues to bend the company’s trajectory toward building fully self-driving cars. Tesla recently dropped plans to build a lower-cost EV that would retail starting at around $25,000, opting instead to use the underlying platform being developed to power an alleged robotaxi that Musk said will debut August 8.

Musk previously tried to prioritize the dedicated robotaxi vehicle project, according to his biographer, Walter Isaacson. In 2022, he told employees that he wanted a “clean robotaxi” with no steering wheel or pedals. Tesla lead designer Franz von Holzhausen and engineering VP Lars Moravy kept running the low-cost EV project in secret and eventually convinced him to make both — that is, until last week when it was reported that Musk changed his mind.

Top execs leave

Two high-profile executives — Drew Baglino, Tesla’s SVP of Powertrain and Energy, and Rohan Patel, VP of Public Policy and Business Development — also left the company.

Patel told TechCrunch he decided Sunday evening to leave Tesla because of “[b]ig overall changes” at the company. Patel, who had been engaging regularly with Tesla customers and fans on X in recent months, declined to be specific. He noted in a message that it would be “better for me not to speculate. … Tesla is going to be stronger than ever, and change is good,” he added.

Baglino told TechCrunch that after 18 years, it was time to leave Tesla. “I feel good about the impact I’ve been able to achieve, my leadership team is strong, the energy businesses I’m responsible for are doing well, etc.,” he wrote in a message to TechCrunch.

“Baglino was in charge of powerdrives and new battery projects, and there’s a sense that there isn’t a whole lot of innovation that’s sustainable at this point, which is probably why Baglino is leaving,” Sandeep Rao, head of research at London-based financial services company Leverage Shares, theorized in an interview with TechCrunch.

Baglino’s departure comes just a few months after Tesla’s previous CFO, Zachary Kirkhorn, stepped down. In January, Musk posted on X, formerly Twitter, that he would want to have around 25% voting control of Tesla in order to focus more fully on the company, rather than on his other companies, and help the EV maker become a leader in AI and robotics.

This article was updated to include information from a regulatory filing that refers to the layoffs as a “restructuring.”




Software Development in Sri Lanka

Robotic Automations

Tesla layoffs hit high performers, some departments slashed, sources say | TechCrunch


Tesla management told employees Monday that the recent layoffs — which gutted some departments by 20% and even hit high performers — were largely due to poor financial performance, a source familiar with the matter told TechCrunch.

The layoffs were announced to staff just a week before Tesla is scheduled to report its first-quarter earnings. The move comes as Tesla has seen its profit margin narrow over the past several quarters, the result of an EV price war that has persisted for at least a year. The company delivered a record 1.81 million vehicles in 2023. Its margins, however, took a hit after Tesla repeatedly slashed prices in a bid to drum up sales and undercut the competition.

Tesla informed employees that more than 10%, or about 14,000 workers, will be laid off across the global organization that has operations in the United States, Europe and China. The layoffs, which affected employees across all departments and seniority levels, were made to reduce costs and increase productivity to prepare for its “next phase of growth,” according to an internal email from CEO Elon Musk that TechCrunch has viewed.

High performers also cut

Many of the laid off employees were high performers, according to two sources who spoke to TechCrunch on condition of anonymity. One source expressed shock at the number of talented employees cut and noted that many of those affected were working on projects that have fallen lower on Tesla’s priority list. The source declined to specify which projects.

Some departments saw layoffs beyond the 10% outlined in the companywide email, according to sources. One manager told TechCrunch that 20% of their employees were cut.

“I lost 20% of my team, some really good players too,” they said.

The shakeup also comes as Musk continues to bend the company’s trajectory towards building fully self-driving cars. Tesla recently dropped plans to build a lower-cost EV that would retail starting at around $25,000, opting instead to use the underlying platform being developed to power an alleged robotaxi that Musk said will debut August 8.

Musk previously tried to prioritize the dedicated robotaxi vehicle project, according to his biographer, Watler Isaacson. In 2022, he told employees that he wanted a “clean robotaxi” with no steering wheel or pedals. Tesla lead designer Franz von Holzhausen and engineering VP Lars Moravy kept running the low-cost EV project in secret and eventually convinced him to make both — that is, until last week when it was reported that Musk changed his mind.

Top execs leave

Two high-profile executives — Drew Baglino, Tesla’s SVP of Powertrain and Energy, and Rohan Patel, VP of Public Policy and Business Development — also left the company.

Patel told TechCrunch he decided Sunday evening to leave Tesla because of “[b]ig overall changes” at the company. Patel, who had been engaging regularly with Tesla customers and fans on X in recent months, declined to be specific. He noted in a message that it would be “Better for me not to speculate.” “Tesla is going to be stronger than ever, and change is good,” he added.

Baglino told TechCrunch that after 18 years it was time to leave Tesla. “I feel good about the impact I’ve been able to achieve, my leadership team is strong, the energy businesses I’m responsible for are doing well, etc,” he wrote in a message to TechCrunch.

“Baglino was in charge of powerdrives and new battery projects, and there’s a sense that there isn’t a whole lot of innovation that’s sustainable at this point, which is probably why Baglino is leaving,” Sandeep Rao, head of research at London-based financial services company Leverage Shares, theorized in an interview with TechCrunch.

Baglino’s departure comes just a few months after Tesla’s previous CFO, Zachary Kirkhorn, stepped down. In January, Musk posted on X, formerly Twitter, that he would want to have around 25% voting control of Tesla in order to focus more fully on the company, rather than on his other companies, and help the EV-maker become a leader in AI and robotics.




Software Development in Sri Lanka

Robotic Automations

US think tank Heritage Foundation hit by cyberattack | TechCrunch


Conservative think tank The Heritage Foundation said on Friday that it experienced a cyberattack earlier this week.

A person with knowledge of the cyberattack told TechCrunch that efforts at Heritage were underway to remediate the cyberattack, but said that it wasn’t immediately known what, if any, data was taken.

Politico, which first reported the news of the cyberattack on Friday, cited a Heritage official as saying the organization “shut down its network to prevent any further malicious activity while we investigate the incident.”

The news outlet quoted the Heritage official as saying that the cyberattack likely came from nation-state hackers, but did not provide evidence of the claim.

Heritage spokesperson Noah Weinrich declined to comment when reached by email on Thursday, and did not immediately respond to a request for comment when contacted by TechCrunch on Friday.

Founded in 1973, Heritage is based in Washington, DC, and supports and lobbies on conservative issues. The foundation is highly influential in Republican politics. Think tanks are frequent targets of overseas cyberattacks and nation state-led espionage efforts for their connections to government and policy making, many of which are staffed by former U.S. administration officials.

Heritage was hit by a cyberattack in 2015 in which hackers stole internal emails and the personal information of its donors.


Software Development in Sri Lanka

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