• During a congressional hearing, Federal Trade Commission Chair Lina Khan and Commissioners Rebecca Slaughter and Alvaro Bedoya said their agency will pursue action against companies that use algorithms or artificial intelligence to violate civil rights laws or engage in unfair or deceptive practices. Bedoya said it is unacceptable for these systems to be operated as a “black box” that cannot be explained, and Khan warned that any AI system used for wrongdoing could put a company “on the hook for FTC action.” (Reuters)
• Taiwan Semiconductor Manufacturing Co. Ltd. is seeking to convince the Biden administration to loosen some of the requirements it has attached to subsidies made available through the CHIPS and Science Act that seek to incentivize the domestic development of semiconductor chips, according to people familiar with the situation. TSMC, which reportedly expects to get up to $8 billion in tax credits and is considering asking for an additional $6 billion to $7 billion in grants, objects to profit-sharing requirements and providing detailed operational information, the people said. (The Wall Street Journal)
• Lobbying groups representing Big Tech firms including Microsoft Corp. and Apple Inc. are seeking to narrow the scope of any legislation that could be used to ban TikTok in the United States, according to people familiar with those conversations, due to concerns that proposed legislation could expose other companies to national security reviews over the use of Chinese technology. The industry pushback could upend the current bipartisan legislation endorsed by the Biden administration that would grant the government the ability to potentially ban any technology owned or operated by an adversarial nation. (Bloomberg)
• Since 2019, Microsoft has been developing an artificial intelligence chip — codenamed Athena — that can power large-language models like OpenAI’s ChatGPT, according to two people with direct knowledge of the project. The goal of developing the chip, which one person said has been made available to a small number of Microsoft and OpenAI employees, is to cut down on the cost of operating AI systems and improve performance over chips from third-party vendors. (The Information)

Happening today: 

• The Telecommunications Industry Association will host the two-day BEAD Success Summit in Arlington, Va., starting today with a focus on navigating the Broadband Equity, Access and Deployment Program to close the digital divide. Speakers include Sen. Mark Warner (D-Va.); Kevin Gallagher, senior adviser to the Commerce Secretary; and Nick Alexander, senior policy adviser in the Office of Internet Connectivity and Growth at the National Telecommunications and Information Administration.
• The World Summit AI Americas kicks off today in Montréal, Québec. Speakers include Joëlle Pineau, vice president of AI research at Meta Platforms Inc.; Alyssa Lefaivre, director of partnerships and market development at the Responsible AI Institute; and Dhruval Shah; director of intelligent automation at AT&T Inc.
• The Senate Armed Services Subcommittee on Cybersecurity will receive testimony on “the state of artificial intelligence and machine learning applications to improve Department of Defense operations.” Speakers include Shyam Sankar, chief technology officer and executive vice president of Palantir Technologies; and Jason Matheny, a commissioner of the National Security Commission on Artificial Intelligence.
• The House Energy and Commerce Subcommittee on Communications and Technology will hold a hearing titled “Breaking Barriers: Streamlining Permitting to Expedite Broadband Deployment.” Speakers include Michael Romano, executive vice president of the NTCA — The Rural Broadband Association; and Ernesto Falcon, senior legislative counsel for the Electronic Frontier Foundation.
• Bloomberg will host Gateway Europe, part of its New Economy series that will focus on the future of work. Speakers include David Sneddon, vice president of Google; Helen Dixon, Commissioner for Data Protection for the Republic of Ireland; and Lila Ibrahim, chief operating officer for DeepMind Technologies.

Nvidia surges to year high after bearish HSBC analyst capitulates

Reuters

Amazon allegedly sold “suicide kits” to vulnerable teens

Judd Legum, Popular Information

A series of lawsuits filed against Amazon allege that the online retailer facilitated the sale of “veritable suicide kits” to vulnerable teens and young adults. The lawsuits involve the sale of highly concentrated Sodium Nitrite, a lethal industrial chemical, on Amazon’s marketplace.

What we know about the Southwest Airlines computer glitch

Ivana Saric, Axios

Southwest Airlines was temporarily forced to halt domestic departures Tuesday following a technical issue.

EU takes on United States, Asia with chip subsidy plan

Foo Yun Chee, Reuters

The European Union on Tuesday agreed to a 43 billion euro ($47 billion) plan for its semiconductor industry in an attempt to catch up with the United States and Asia and start a green industrial revolution.

Google to Open App Payment Options in UK After Watchdog Probe

Vlad Savov and Mark Bergen, Bloomberg

Alphabet Inc.’s Google has offered to give Android app makers a choice of billing systems in the UK, the country’s competition regulator said.

Google wins appeal of $20 mln US patent verdict over Chrome technology

Blake Brittain, Reuters

Alphabet’s Google LLC on Tuesday convinced a U.S. appeals court to cancel three anti-malware patents at the heart of a Texas jury’s $20 million infringement verdict against the company.

US Urges College, Chip-Firm Partnerships as It Faces Technician Shortfall

Eric Martin, Bloomberg

The US needs “robust partnership” between top universities and private industry as it works to beef up domestic semiconductor-manufacturing capacity, Commerce Secretary Gina Raimondo said.

ChatGPT Buzz Fuels Demand for Chips and Gear, Advantest Says

Takashi Mochizuki and Yuki Furukawa, Bloomberg

Advantest Corp. is seeing a spike in demand for its chip-testing devices, catalyzed by the frenzy of interest in OpenAI’s ChatGPT and other novel uses of artificial intelligence.

Broadcom releases chip for wiring together AI supercomputers

Stephen Nellis, Reuters

Broadcom Inc on Tuesday released a new chip for wiring together supercomputers for artificial intelligence (AI) work using networking technology that is already in wide use.

People Are Using AI for Therapy, Even Though ChatGPT Wasn’t Built for It

Rachel Metz, Bloomberg

Milo Van Slyck missed an appointment with his therapist in early April, so he decided to try something new: telling ChatGPT about his problems.

AI Is Heading to the Finance Function. Here’s How Risk-Averse CFOs Can Adapt.

Anna Mutoh, The Wall Street Journal

Nascent technologies promise to disrupt budgeting and forecasting and automate mundane accounting duties, but inertia among finance chiefs may slow adoption. The key to integration, says one CFO, is ‘having some quick wins.’

GPT-4 will hunt for trends in medical records thanks to Microsoft and Epic

Benj Edwards, Ars Technica

On Monday, Microsoft and Epic Systems announced that they are bringing OpenAI’s GPT-4 AI language model into health care for use in drafting message responses from health care workers to patients and for use in analyzing medical records while looking for trends.

Broadband Map Bill Would Add a Reallocation Process to BEAD Funding Program

Joan Engebretson, Telecompetitor

The text of a Senate bill that aims to improve the accuracy of federal broadband maps was made public yesterday. The bill, known as the Accurate Map for Broadband Investment Act of 2023, calls for a reallocation process for the $42.5 billion Broadband Equity Access and Deployment (BEAD) program, which is designed to cover some of the costs of making broadband available to unserved rural areas.

Nokia takes aim at rural deployments with new access node

Diana Goovaerts, Fierce Telecom

Nokia took the next step in its apparent quest to corner the rural broadband market, unveiling a new access node designed for network segments which serve smaller populations.

Google to launch its first foldable phone, the ‘Pixel Fold,’ in June

Jennifer Elias, CNBC

Google is planning to launch its first foldable smartphone at upward of $1,700, making it the highest price-point product in Google’s smartphone series, according to internal documents and images viewed by CNBC.

Apple’s AR/VR Headset to Feature Sports, Gaming, iPad Apps and Workouts

Mark Gurman, Bloomberg

Apple Inc. is racing to build a trove of software and services for its upcoming mixed-reality headset, seeking to win over potentially wary consumers with apps that use the device’s novel 3D interface.

Most cloud accounts need security upgrades, report finds

Sam Sabin, Axios

The majority of cloud accounts are riddled with improper security controls, exposed sensitive databases and high-risk vulnerabilities, according to new research from Palo Alto Networks.

EU proposes $1.2 billion plan to counter growing cybersecurity threats

Foo Yun Chee, Reuters

The European Commission on Tuesday announced a 1.1-billion-euro ($1.2 billion) plan to counter growing cybersecurity threats, underscoring mounting concerns about a series of high-profile hacking incidents.

NSO Group Found New Ways to Hack iPhones Last Year, Researchers Say

William Turton, Bloomberg

The Israeli surveillance technology company NSO Group used at least three methods for breaking into iPhones when targeting members of civil society in 2022, according to a report by the Citizen Lab, a research group at the University of Toronto.

Apple’s high security mode blocked NSO spyware, researchers say

Lorenzo Franceschi-Bicchierai, TechCrunch

Last year, Apple launched a new feature for iPhone users who are worried about getting targeted with sophisticated spyware, such as journalists or human rights defenders.

17 House members, 585 aides affected in D.C. health insurance breach

Sam Sabin, Axios

Seventeen House members and 585 congressional aides were affected by a data breach at the D.C.’s health insurance marketplace last month, the marketplace’s director will tell Congress on Wednesday.

ChatGPT Poised to Expose Corporate Secrets, Cyber Firm Warns

Marissa Newman, Bloomberg

Companies using generative artificial intelligence tools like ChatGPT could be putting confidential customer information and trade secrets at risk, according to a report from Team8, an Israel-based venture firm.

Instagram takes on Linktree and others with support for up to 5 ‘links in bio’

Sarah Perez, TechCrunch

Instagram today is rolling out a new feature for adding links to user profiles that challenges Linktree, Beacons and numerous other “link in bio” solution providers.

Twitter made it easier to harass transgender users

Jess Weatherbed and Emma Roth, The Verge

The platform quietly removed specific protections against targeted misgendering and deadnaming from its Hateful Conduct Policy.

Meta Opens Horizon Worlds VR App to Teens as Company Seeks More Metaverse Users

Salvador Rodriguez, The Wall Street Journal

Facebook-parent Meta Platforms Inc. has opened its flagship Horizon Worlds VR app to teenagers, part of a strategy to boost engagement on its Quest headsets as the company seeks to gain traction in the so-called metaverse.

Twitter Chief Elon Musk Tries to Reassure Advertisers

Arian Campo-Flores and Patience Haggin, The Wall Street Journal

Twitter Chief Executive Elon Musk made his latest appeal to advertisers on Tuesday, seeking to reassure them that the platform is a hospitable and valuable vehicle for their brands.

Meta encryption ‘blindfolds’ authorities to child abuse, crime agencies claim

Jim Pickard and Hannah Murphy, Financial Times

FBI, Interpol and UK National Crime Agency among law enforcement groups warning about tech company’s plans.

Reddit Wants to Get Paid for Helping to Teach Big A.I. Systems

Mike Isaac, The New York Times

The internet site has long been a forum for discussion on a huge variety of topics, and companies like Google and OpenAI have been using it in their A.I. projects.

Snap Says It’s Wrongly Dragged Into Social Media Addiction Suits

Malathi Nayak, Bloomberg

Snap Inc. says it can’t be sued for allegedly addicting young users and contributing to a mental-health crisis because its “ephemeral” messaging service is “fundamentally different” from other platforms including TikTok and Instagram that are at the center of a surge in lawsuits over social media addiction.

Amazon lays off some employees in its advertising unit

Annie Palmer, CNBC

Amazon on Tuesday began laying off some employees in its advertising as part of CEO Andy Jassy’s effort to rein in costs, the company confirmed.

Meta Prepares More Layoffs Across Facebook, WhatsApp, Instagram

Edward Ludlow, Bloomberg

Meta Platforms Inc. is set to commence companywide layoffs on Wednesday as it restructures teams and works toward founder Mark Zuckerberg’s goal of greater efficiency.

Tech Firms Try to Muzzle Workers With NDAs, SEC Tipsters Say

Sabrina Willmer and Austin Weinstein, Bloomberg

Some top US technology companies are forcing workers to sign allegedly illegal labor agreements, according to complaints filed with the Securities and Exchange Commission, despite years of enforcement by the agency against the practice.

The secret ingredient to hustle culture: A virtual assistant in the Philippines

Ashley Westerman, Rest of World

Virtual assistants based in the Philippines are becoming a sought-after hire for startup entrepreneurs in the U.S. who want to do more with less.

Software firms across U.S. facing massive tax bills that threaten tech startup world survival

Eric Rosenbaum, CNBC

Congress failed to extend a key tax provision last year allowing companies to fully expense research and development costs in the year incurred, a blow to big corporations that had lobbied for it.