News of the Cyber World

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Google Pays Apple Up to $20 Billion a Year to Protect Search Engine, 16% of iPhone Maker’s Profits

The Register reports that in the world of tech industry agreements, one of the most lucrative deals has been quietly operating between two giants: Google and Apple. Google has been paying Apple between $18 billion and $20 billion per year to secure its position as the dominant search engine on the iPhone, according to research by analyst firm Bernstein. This deal, while financially beneficial for both parties, has recently come under scrutiny due to its potential anticompetitive nature.

The Information Services Agreement (ISA) between Apple and Google has been highlighted as a primary example of anticompetitive behavior in an ongoing civil antitrust lawsuit against Google by the DOJ. The lawsuit alleges monopolization of search and search advertising by Google, putting deals like the ISA under a magnifying glass.

Bernstein, which advises institutional investors, has delved into the potential repercussions for Apple should the DoJ’s lawsuit against Google succeed. The firm has expressed that there is a possibility that federal courts might rule against Google, forcing it to terminate its search deal with Apple.
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“Importantly, Google is on trial, not Apple, and Apple could (in theory) partner with another search engine to be the default (and/or retain the agreement with Google outside the US),” the report states. “One more likely scenario is that Apple offers a choice screen. We note that Apple controls access to its installed base, which generates ~$60B + in advertising revenues, and accordingly, we believe that Apple would continue to command a commission (in the 25-30 percent range) for providing access to those search advertising revenues.

Vice: Tech Giants Don’t Seem to Care About the Twisted Content Their Psycho AI Tools Generate

Vice News reports that generative AI has emerged as a powerful tool, enabling users to create a myriad of content, ranging from the whimsical to the downright offensive. Tech giants, including ChatGPT developer OpenAI, Microsoft and Facebook (now known as Meta), have been ardently pushing forward with AI-generated content, unveiling chatbots and image-generating tools that have been hailed as the future of content creation.

However, the path has been far from smooth, with numerous instances of these tools being exploited to generate inappropriate and even harmful content. For instance, Microsoft Bing’s Image Creator, powered by OpenAI’s DALL-E, has been manipulated to generate images that range from popular characters in violent scenarios to explicit content.
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Earlier this week, users of Microsoft Bing’s Image Creator, which is powered by OpenAI’s DALL-E, showed that they can easily generate things they shouldn’t be able to. The model is spewing out everything from Mario and Goofy at the January 6th insurrection to Spongebob flying a plane into the World Trade Center. Motherboard was able to generate images including Mickey Mouse holding an AR-15, Disney characters as Abu Ghraib guards, and Lego characters plotting a murder while holding weapons without issue. Facebook parent company Meta isn’t doing much better; the company’s Messenger app has a new feature that lets you generate stickers with AI—including, apparently, Waluigi holding a gun, Mickey Mouse with a bloody knife, and Justin Trudeau bent over naked.
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This analysis takes on a whole new level of seriousness when we consider that children are using these tools every day. A young fan of Spongebob will react differently to a violent image of the loveable character than a user in their 20’s. Based on the fact that data shows cheating on homework is a primary use case for ChatGPT, it’s safe to assume kids are also consuming much of the twisted content AI generates.

Judge Overturns Ruling that Google Infringed on Sonos Patents

Engadget reports that Google has successfully navigated through a legal maze, convincing a California federal judge that it did not infringe on Sonos’ patents related to multi-room audio technology. The decision comes after a meticulous review of the patent applications and technology rollouts by both tech companies.

The lawsuit, initiated by Sonos in early 2020, accused Google of violating five of its speaker patents. The audio technology company’s CEO, Patrick Spence, had previously asserted that Google was “blatantly and knowingly” copying Sonos technology and had been uncooperative in finding a “mutually beneficial solution.” The initial verdict by a California federal jury seemed to validate Sonos’ claims, ordering Google to pay $32.5 million in penalties.

However, the tables turned when US District Judge William Alsup scrutinized the timeline and specifics of the patent applications and technology implementations by both companies. The judge highlighted that while Sonos connected its patents to a 2006 provisional application, the company did not file the applications for the patents under dispute until 2019. Moreover, it did not incorporate the technology into its products until 2020. This was notably after Google had, in 2014, presented a plan to Sonos to utilize multi-room audio technology while exploring potential collaboration.

Judge Alsup stated, “This was not a case of an inventor leading the industry to something new.” He further noted, “This was a case of the industry leading with something new and, only then, an inventor coming out of the woodwork to say that he had come up with the idea first — wringing fresh claims to read on a competitor’s products from an ancient application.”

Let me ask you a simple question. Did you ever imagine that your AI-based searches or requests were quite expensive for its developers?

ChatGPT Developer OpenAI Mulls Entering AI Chip Manufacturing Market

Frustrated with chip shortages, the company behind ChatGPT, OpenAI, is considering entering the chip manufacturing market itself, with various options including the acquisition of another chip manufacturing company on the table, per a report in Reuters.

The AI industry has come to rely on a singular product, Nvidia’s H100 Graphics Processing Unit (GPU) a semiconductor chip that now powers all leading large language models (LLMs), like ChatGPT.

Shortages of the chips, driven by an arms race to acquire them led by big tech companies, has led OpenAI to consider new methods.

However, since at least last year it discussed various options to solve the shortage of expensive AI chips that OpenAI relies on, according to people familiar with the matter.

The effort to get more chips is tied to two major concerns Altman has identified: a shortage of the advanced processors that power OpenAI’s software and the “eye-watering” costs associated with running the hardware necessary to power its efforts and products.

Since 2020, OpenAI has developed its generative artificial intelligence technologies on a massive supercomputer constructed by Microsoft, one of its largest backers, that uses 10,000 of Nvidia’s graphics processing units (GPUs).

The chip shortage has placed an economic constraint on the AI industry’s growth. With the current costs of chips, each ChatGPT query costs the company 4 cents — a significant cost, considering the LLM received 10 million queries in its launch week alone.