Meta investors, Zuckerberg settle $8 billion privacy lawsuit over Facebook data violations
Shareholders alleged that top executives ignored the company's legal obligations and ran Facebook as an illegal data-gathering operation. The case was based on Caremark claims, a rare and difficult-to-prove legal standard in Delaware corporate law related to board oversight failures.Zuckerberg and Sandberg were expected to testify next week, along with other prominent former board members such as Peter Thiel and Reed Hastings. Sandberg was previously sanctioned for deleting emails during litigation, complicating her defense.By settling, the defendants avoid testifying under oath, while shareholders sidestep the challenge of proving complex corporate law claims. The case followed the infamous Cambridge Analytica scandal, in which user data was improperly accessed for political advertising during the 2016 US presidential campaign.As reported by Reuters, Jason Kint, CEO of Digital Content Next, criticised the settlement, saying it denied the public a chance at accountability. 'Facebook has reframed the Cambridge Analytica scandal as a few bad actors, avoiding deeper scrutiny of its surveillance-based business model,' he said. Meta has not commented on the settlement.- EndsTrending Reel
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Mint
27 minutes ago
- Mint
Trump to outline AI priorities amid tech battle with China
Trump to deliver what aides call a major speech on AI priorities White House AI and crypto czar David Sacks will join his co-hosts on the 'All-In' podcast to highlight AI efforts Trump expected to take more actions in upcoming weeks to help tech giants power AI industry By Jarrett Renshaw and Alexandra Alper July 23 - The Trump administration is set to release a new artificial intelligence blueprint on Wednesday that aims to relax American rules governing the industry at the center of a technological arms race between economic rivals the U.S. and China. President Donald Trump will mark the plan's release with a speech outlining the importance of winning an AI race that is increasingly seen as a defining feature of 21st-century geopolitics, with both China and the U.S. investing heavily in the industry to secure economic and military superiority. According to a summary seen by Reuters, the plan calls for the export of U.S. AI technology abroad and a crackdown on state laws deemed too restrictive to let it flourish, a marked departure from former President Joe Biden's "high fence" approach that limited global access to coveted AI chips. Top administration officials such as Secretary of State Marco Rubio and White House National Economic Adviser Kevin Hassett are also expected to join the event titled "Winning the AI Race," organized by White House AI and crypto czar David Sacks and his co-hosts on the "All-In" podcast, according to an event schedule reviewed by Reuters. Trump may incorporate some of the plan's recommendations into executive orders that will be signed ahead of his speech, according to two sources familiar with the plans. Trump directed his administration in January to develop the plan. The event will be hosted by the Hill and Valley Forum, an informal supper club whose deep-pocketed members helped propel Trump's campaign and sketched out a road map for his AI policy long before he was elected. Trump is expected to take additional actions in the upcoming weeks that will help Big Tech secure the vast amounts of electricity it needs to power the energy-guzzling data centers needed for the rapid expansion of AI, Reuters previously reported. U.S. power demand is hitting record highs this year after nearly two decades of stagnation as AI and cloud computing data centers balloon in number and size across the country. The new AI plan will seek to bar federal AI funding from going to states with tough AI rules and ask the Federal Communications Commission to assess whether state laws conflict with its mandate, according to the summary. The Trump administration will also promote open-source and open-weight AI development and "export American AI technologies through full-stack deployment packages" and data center initiatives led by the Commerce Department, according to the summary. Trump is laser-focused on removing barriers to AI expansion, in stark contrast to Biden, who feared U.S. adversaries like China could harness AI chips produced by companies like Nvidia and AMD to supercharge its military and harm allies. Biden, who left office in January, imposed a raft of restrictions on U.S. exports of AI chips to China and other countries that it feared could divert the semiconductors to America's top global rival. Trump rescinded Biden's executive order aimed at promoting competition, protecting consumers and ensuring AI was not used for misinformation. He also rescinded Biden's so-called AI diffusion rule, which capped the amount of American AI computing capacity that some countries were allowed to obtain via U.S. AI chip imports. In May, Trump announced deals with the United Arab Emirates that gave the Gulf country expanded access to advanced artificial intelligence chips from the U.S. after previously facing restrictions over Washington's concerns that China could access the technology. This article was generated from an automated news agency feed without modifications to text.
Mint
27 minutes ago
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Spy cockroaches and AI robots: Germany plots the future of warfare
Two of three European defence "unicorns" are German Government more supportive of defence startups, CEOs say Govt creating fast track to bypass procurement red tape, sources say Smaller firms advising govt alongside Rheinmetall, source says By Supantha Mukherjee, Sarah Marsh and Christoph Steitz MUNICH/BERLIN/FRANKFURT, July 23 (Reuters) - For Gundbert Scherf - the co-founder of Germany's Helsing, Europe's most valuable defence start-up - Russia's invasion of Ukraine changed everything. Scherf had to fight hard to attract investment after starting his company - which produces military strike drones and battlefield AI - four years ago. Now, that's the least of his problems. The Munich-based company more than doubled its valuation to $12 billion at a fundraising last month. "Europe this year, for the first time in decades, is spending more on defense technology acquisition than the U.S.," said Scherf. The former partner at McKinsey & Company says Europe may be on the cusp of a transformation in defence innovation akin to the Manhattan Project - the scientific push that saw the U.S. rapidly develop nuclear weapons during World War Two. "Europe is now coming to terms with defense." Reuters spoke to two dozens executives, investors and policymakers to examine how Germany - Europe's largest economy - aims to play a central role in the rearming the continent. Chancellor Friedrich Merz's government views AI and start-up technology as key to its defence plans and is slashing bureaucracy to connect startups directly to the upper echelons of its military, the sources told Reuters. Shaped by the trauma of Nazi militarism and a strong postwar pacifist ethos, Germany long maintained a relatively small and cautious defence sector, sheltered by U.S. security guarantees. Germany's business model, shaped by a deep aversion to risk, has also favoured incremental improvements over disruptive innovation. No more. With U.S. military support now more uncertain, Germany - one of the biggest backers of Ukraine - plans to nearly triple its regular defence budget to around 162 billion euros ($175 billion) per year by 2029. Much of that money will go into reinventing the nature of warfare, the sources said. Helsing is part of a wave of German defence start-ups developing cutting-edge technology, from tank-like AI robots and unmanned mini-submarines to battle-ready spy cockroaches. "We want to help give Europe its spine back," said Scherf. Some of these smaller firms are now advising the government alongside established firms - so-called primes such as Rheinmetall and Hensoldt - that have less incentive to focus primarily on innovation, given their long backlogs for conventional systems, one of the sources said. A new draft procurement law, expected to be approved by Merz's cabinet on Wednesday, aims to reduce hurdles for cash-strapped start-ups to join tenders by enabling advance payment to these firms, according to a version dated June 25, reviewed by Reuters. The law would also entitle authorities to limit tenders to bidders inside the European Union. Marc Wietfeld, CEO and founder of autonomous robots maker ARX Robotics, said a recent meeting with German defence minister Boris Pistorius hammered home how deep the rethink in Berlin goes. "He told me: 'Money is no longer an excuse - it's there now'. That was a turning point," he said. Since Donald Trump's return to the political stage and his renewed questioning of America's commitment to NATO, Germany has committed to meet the alliance's new target of 3.5% of GDP on defense spending by 2029 - faster than most European allies. Officials in Berlin have emphasized the need to foster a European defence industry rather than rely on U.S. companies. But the hurdles towards scaling up industry champions in Germany - and Europe more broadly - are considerable. Unlike in the United States, the market is fragmented in Europe. Each country has its own set of procurement standards to fulfill contracts. The United States, the world's top military spender, already has an established stable of defence giants, like Lockheed Martin and RTX, and an advantage in key areas, including satellite technology, fighter jets and precise-guided munitions. Washington also began boosting defence tech startups in 2015 - including Shield AI, drone maker Anduril and software company Palantir - by awarding them parts of military contracts. European startups until recently languished with little government support. But an analysis by Aviation Week in May showed Europe's 19 top defence spenders - including Turkey and Ukraine - were projected to spend 180.1 billion this year on military procurement compared, to 175.6 billion for the United States. Washington's overall military spending will remain higher. Hans Christoph Atzpodien, head of Germany's security and defence sector association BDSV, said one challenge was that the military's procurement system was geared toward established suppliers and not well suited to the fast pace that new technologies require. Germany's defence ministry said in a statement it was taking steps to accelerate procurement and to better integrate startups in order to make new technologies quickly available to the Bundeswehr. Annette Lehnigk-Emden, head of the armed forces' powerful procurement agency, highlighted drones and AI as emerging fields that Germany needs to develop. "The changes they're bringing to the battlefield are as revolutionary as the introduction of the machine gun, tank, or airplane," she told Reuters. Sven Weizenegger, who heads up the Cyber Innovation hub, the Bundeswehr's innovation accelerator, said the war in Ukraine was also changing social attitudes, removing a stigma towards working in the defence sector. "Germany has developed a whole new openness towards the issue of security since the invasion," he said. Weizenegger said he was receiving 20-30 Linkedin requests a day, compared to maybe 2-3 weekly back in 2020, with ideas for defence technology to develop. Some of the ideas under development feel akin to science fiction – like Swarm Biotactics' cyborg cockroaches that are equipped with specialised miniature backpacks that enable real-time data collection via cameras for example. Electrical stimuli should allow humans to control the insects' movements remotely. The aim is for them to provide surveillance information in hostile environments - for example information about enemy positions. "Our bio-robots - based on living insects - are equipped with neural stimulation, sensors, and secure communication modules," said CEO Stefan Wilhelm. "They can be steered individually or operate autonomously in swarms. In the first half of the 20th century, German scientists pioneered many military technologies that became global standards, from ballistic missiles to jet aircraft and guided weapons. But following its defeat in World War II, Germany was demilitarized and its scientific talent was dispersed. Wernher von Braun, who invented the first ballistic missile for the Nazis, was one of hundreds of German scientists and engineers transported to the United States in the wake of World War II, where he later worked at NASA and developed the rocket that took Apollo spacecraft to the Moon. In recent decades, defence innovation has been a powerful driver of economic progress. Tech like the internet, GPS, semiconductors and jet engines originated in military research programs before transforming civilian life. Hit by high energy prices, a slowdown in demand for its exports and competition from China, Germany's $4.75 trillion economy contracted over the last two years. Expanding military research could provide an economic fillip. "We just need to get to this mindset: a strong defense industrial base means a strong economy and innovation on steroids," said Markus Federle, managing partner at defence-focused investment firm Tholus Capital. ESCAPING 'THE VALLEY OF DEATH' Risk aversion among European investors had in the past disadvantaged startups, which struggled to get the capital they need to survive the 'valley of death' – the critical early stage when costs are high and sales low. But a boost in defence spending by European governments following Russia's invasion of Ukraine has investors looking for opportunities. Europe now boasts three start-ups with a unicorn valuation of more than $1 billion: Helsing, German drone maker Quantum Systems, and Portugal's Tekever, which also manufactures drones. "There's a lot of pressure now on Germany being the lead nation of the European defense," said Sven Kruck, Quantum's chief strategy officer. Germany has become Ukraine's second-biggest military backer after the United States. Orders that might once have taken years to approve now take months and European startups have had the opportunity to test their products quickly in the field, several sources said. Venture capital funding of European defence tech hit $1 billion in 2024, up from a modest $373 million in 2022, and is expected to surge even more this year. "Society has recognized that we have to defend our democracies," said Christian Saller, general partner at HV Capital, an investor in both ARX and Quantum Systems. Venture capital funding has grown faster in Germany than elsewhere, according to a data analysis by Dealroom for Reuters. German defence startups have received $1.4 billion in the last five years from investors, followed by UK, the data shows. Jack Wang, partner at venture capital firm Project A, said many German defence startups - rooted in the country's engineering prowess - are good at integrating established components into scalable systems. "Quality of talent in Europe is extremely high, but as a whole, there's no better country, no better talent that we've seen other than in Germany," he said. Weakness in Germany's automotive industry means there is production capacity to spare, including in the Mittelstand: the small and medium-sized enterprises (SMEs) that form the backbone of Germany's economy. Stefan Thumann, CEO of Bavarian startup Donaustahl, which produces loitering munitions, said he receives 3 to 5 applications daily from workers at automotive companies. "The startups just need the brains to do the engineering and prototyping," he said. "And the German Mittelstand will be their muscles." ($1 = 0.8560 euros) (Reporting by Supantha Mukherjee in Munich, Sarah Marsh in Berlin and Christoph Steitz in Frankfurt; Additional Reporting by Sabine Siebold in Berlin; Editing by Kenneth Li and Daniel Flynn)
Time of India
30 minutes ago
- Time of India
World's largest asset manager BlackRock tells employees: You cannot carry your phones and laptops for China Travel
Live Events The world's largest asset manager, BlackRock , has asked its employees not to carry company-issued phones and laptops while travelling to China and has asked to use temporary loaner phones, according to Bloomberg News and Reuters company has detailed the policy enhancement in an internal memo which is effective from July 16 which mentions barring use of BlackRock issue iPhones, iPads, laptops and remote access via virtual private networks while in Read | Gold ETF has beaten Nifty ETF 7 times in 10 years. How to invest now? According to a Bloomberg report, the company further mentioned that employees will also lose access to BlackRock network during personal travel to the move highlights growing corporate unease over operating in China amid escalating geopolitical tensions between Washington and Beijing , which are putting pressure on global business report comes as firms witness China's growing hold over access during the travel to the nation, as reported by Monday, the U.S. State Department said that the Chinese government had blocked an unnamed U.S. Patent and Trademark Office employee visiting the Asian country in a personal capacity from leaving. Earlier this month, a Wells Fargo banker was also blocked from leaving China. Beijing's foreign ministry said the banker was involved in a criminal case, Reuters further China implemented stricter data security laws in 2021, global financial firms have struggled to balance operational needs with compliance Read | Silver ETFs jump 31% in 2025 as metal hits all-time high. Should you bet on this rally? BlackRock maintains a substantial presence in China through a wholly owned mutual fund company and a wealth management company in a joint venture with China Construction Bank Corporation.
