FTC launches an antitrust probe into Microsoft’s deal with Inflection AI


Microsoft is under investigation by the Federal Trade Commission over its deal with Inflection AI, according to The Wall Street Journal. Back in March, the company hired almost all of Inflection AI’s employees, including founders Karén Simonyan and Mustafa Suleyman, who was also a DeepMind cofounder. In addition, Microsoft paid Inflection AI $650 million to license its artificial intelligence technology. Now, the FTC wants to know whether the companies deliberately structured the deal to avoid being the subject of regulatory antitrust review.

As The Journal notes, companies are required to report any acquisition that’s valued at $119 million or more to federal antitrust agencies. The FTC or the Justice Department could then investigate whether the deal stifles competition in the industry and then sue to block the merger or the investment that it deems to be anti-competitive. When companies want to hire all the talent in another firm, they typically buy the other out in an “acquihire.” But Microsoft didn’t buy Inflection, which denied that the bigger company has any power over it. Ted Shelton, its new COO, told the publication that it still operates as an independent company under new leadership.

The FTC has already sent out subpoenas to both Microsoft and Inflection, asking for relevant documents over the past two years. If it does determine that the companies entered into an agreement in a way that would give Microsoft control over the other while dodging regulatory review, then Microsoft could be fined, and the transaction could be suspended pending a more in-depth investigation.

Microsoft provided Engadget with the following statement: “Our agreements with Inflection gave us the opportunity to recruit individuals at Inflection AI and build a team capable of accelerating Microsoft Copilot, while enabling Inflection to continue pursuing its independent business and ambition as an AI studio. We take our legal obligations to report transactions under the HSR Act seriously and are confident that we have complied with those obligations.”

US federal agencies have been cracking down on monopolistic practices by the world’s largest tech companies over the past few years. To be even more efficient in conducting antitrust investigations involving the current biggest players in artificial intelligence, the agencies have also just struck a deal on how they’re dividing their responsibilities. The Justice Department will take the lead in investigations involving NVIDIA, while the FTC will take charge of antitrust probes involving Microsoft and OpenAI.

Update, June 6 2024, 11:46AM ET: This story has been updated to include a statement from Microsoft.

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New York is about to give parents more control over their kids’ social media feeds


New York is poised to pass a law that will bar social media platforms from showing algorithmic feeds to teens without parental consent. The Wall Street Journal that lawmakers in the state have reached a “tentative agreement” on a bill that will be voted on later this week.

State officials, including Governor Kathy Hochul, introduced a bill requiring parental consent for algorithmic feeds The Stop Addictive Feeds Exploitation (SAFE) for Kids Act doesn’t restrict the type of content teens can view on social media apps, but they wouldn’t be able to view algorithmic feeds without permission from their parents or guardians. The latest version of the bill will also block teens from seeing in-app notifications overnight without parental consent, according to The Wall Street Journal.

If passed into law, New York would become the latest state to attempt to rein in social media platforms’ access to teens with requirements. Utah a law last year requiring social media apps to get parental consent, though the measure was later . Lawmakers in California have also limiting teens’ access to algorithmic feeds.

The Tribeca Film Festival will debut a bunch of short films made by AI


The Tribeca Film Festival will debut five short films made by AI, . The shorts will use OpenAI’s Sora model, which transforms . This is the first time this type of technology will take center stage at the long-running film festival.

“Tribeca is rooted in the foundational belief that storytelling inspires change. Humans need stories to thrive and make sense of our wonderful and broken world,” said co-founder and CEO of Tribeca Enterprises Jane Rosenthal. Who better to chronicle our wonderful and broken world than some lines of code owned by a company that to let CEO Sam Altman and other board members ?

The unnamed filmmakers were all given access to the Sora model, which isn’t yet available to the public, though they have to follow the terms of the agreements negotiated during the recent strikes . OpenAI’s COO, Brad Lightcap, says the feedback provided by these filmmakers will be used to “make Sora a better tool for all creatives.”

When we last covered Sora, it could only handle 60 seconds of video from a single prompt. If that’s still the case, these short films will make Quibi shows look like a Ken Burns documentary. The software also struggles with cause and effect and, well, that’s basically what a story is. However, all of these limitations come from the ancient days of February, and this tech tends to move quickly. Also, I assume there’s no rule against using prompts to create single scenes, which the filmmaker can string together to make a story.

We don’t have that long to find out if cold technology can accurately peer into our warm human hearts. The shorts will screen on June 15 and there’s a conversation with the various filmmakers immediately following the debut.

This follows a spate of agreements between . Vox Media, The Atlantic, News Corp, Dotdash Meredith and even Reddit have all struck deals with OpenAI to let the company train its models on their content. Meanwhile, Meta and Google are looking for to train its models. It looks like we are going to get this “AI creates everything” future, whether we want it or not.

Acer launches a compact SpatialLabs camera for 3D photos and videos


Acer has unveiled the new SpatialLabs Eyes Stereo Camera specifically for those who want to take 3D photos and videos. Users can not only use it to capture 3D content, but also to livestream in 3D on YouTube and other platforms, as well as to make 3D video calls on Teams, Zoom and Google Meet. The company describes the camera as “compact” and “pocket-sized,” with dimensions measuring 4 x 2.6 x 0.9 inches.

It has a resolution of 8 megapixels per eye and a built-in selfie mirror encased in a weather-proof shell. The more casual users can take advantage of its Electronic Image Stabilization (EIS) feature, along with its auto and touch focus capabilities. But experienced photographers can customize their output as much as they want to in manual mode, which will allow them to adjust the camera’s ISO, white balance and shutter speed settings.

The camera’s 3D livestreaming feature will be enabled by version 3.0 of Acer’s SpatialLabs Player, while high-resolution 3D video conferencing will be made possible through the company’s SpatialLabs video call widget. It will, of course, be compatible with Acer’s range of SpatialLabs devices, including laptops with glasses-free 3D screens. But you can view 3D content captured by the device even on other companies’ AR or VR headsets and 3D projectors.

The Acer SpatialLabs Eyes Stereo Camera will be available in the third quarter of the year with prices starting at $549 or €549 in the US and in Europe, respectively.

A person livestreaming with a camera in the foreground.A person livestreaming with a camera in the foreground.

Acer

Wildermyth will conclude with its final expansion, Omenroad


Wildermyth is an incredible procedurally generated RPG that leads players through a series of narrative quests. As you build bases, battle foes, and learn more about the world, you’re able to build up your cast with new decisions and sacrifices. A hero might die, marry another party member and have children, or turn into an increasingly feral beast. It’s a tremendously cozy, satisfying RPG experience.

Wildermyth has a core campaign, and additional adventurers that introduce new stories and new enemy factions. The game’s first DLC pack was focused around new cosmetic skins and armors for heroes, whereas the upcoming Omenroad expansion includes a roguelike-style challenge mode and a new story campaign called Walk in the Unlight. While Omenroad brings lots of new bosses and challenging fights, it also represents an end to development for Wildermyth. Worldwalker Games announced the conclusion on May 29 on the game’s official X account.

“We will continue to support the game and fix critical bugs, but don’t expect new content going forward,” co-owner Nate Austin wrote. “We will be saying farewell to many of our team members. Worldwalker Games is going into hibernation for now.”

Austin clarifies that the team still intends to port Wildermyth to other platforms, and the hibernation does not affect that “in any way.” He also commits to continuing a Kickstarter that will record the game’s music live and integrate it into the game, French and Spanish translations for Omenroad, and to maintain the game’s Discord, wiki, support email, merch store, and social media.

Wildermyth has been wonderful, but nothing goes on forever,” wrote Austin. “We wanted to ship Omenroad, and having done that, we’re ready to move on. This was the plan, and it doesn’t have anything to do with how well Omenroad is doing. (It’s doing well! We’re extremely proud of it.)”

He added, “I’m pretty sure we’ll eventually find something else to pour our passion into, and we’ll let you know about it when the time comes.”

It’s sad to see an end to Wildermyth, which has become one of my staples when I want to play a narrative RPG adventure. But it’s also a tremendous game, and it’s good to see the studio end on a high note and walk away from the project of their own choice. While we may never see another title from the Worldwalker team, I’ll treasure Wildermyth and the stories it effortlessly spins for years to come.

Elon Musk is reportedly planning an xAI supercomputer to power a better version of Grok


Elon Musk told investors this month that his startup xAI is planning to build a supercomputer by the fall of 2025 that would power a future, smarter iteration of its Grok chatbot, The Information reports. This supercomputer, which Musk reportedly referred to as a “gigafactory of compute,” would rely on tens of thousands of NVIDIA H100 GPUs and cost billions of dollars to build. Musk has previously said the third version of Grok will require at least 100,000 of the chips — a fivefold increase over the 20,000 GPUs said to be in use for training Grok 2.0.

According to The Information, Musk also told investors in the presentation that the planned GPU cluster would be at least four times the size of anything used today by xAI competitors. Grok is currently in version 1.5, which was released in April, and is now touted to process visual information like photographs and diagrams as well as text. X earlier this month started rolling out AI-generated news summaries powered by Grok for premium users.

Atari just bought Intellivision, putting an end to the very first console war


Atari just announced that , along with more than 200 games from Intellivision Entertainment LLC. This puts an end to the very first console war, as Atari and Intellivison were bitter rivals going all the way back to 1979. The original Intellivision console, released by Mattel, went up against the Atari VCS (later named the 2600) a full decade before Nintendo and Sega started their beef.

“Uniting Atari and Intellivision after 45 years ends the longest-running console war in history,” said Mike Mika, the studio head at Atari-owned Digital Eclipse.

The deal doesn’t include the retro console. Intellivision Entertainment LLC will continue working on the Amico as a separate and rebranded company and will use a license provided by Atari to release Intellivision games on it. The company has had a difficult time getting the console funded after originally announcing it back in 2018. It did manage, however, to release a truly bizarre app for iOS and Android devices that requires two smartphones or tablets to work. One device displays the game and the other acts as a controller. It’s a weird idea and, , “one janky piece of crap.”

As for Atari, it’s already making use of the Intellivision brand by adding items like . Atari CEO and chairman that the acquisition presented a “very rare opportunity to unite former competitors and bring together fans of Atari, Intellivision and the golden age of gaming.” The ColecoVision, , was also part of this golden age of gaming, but has yet to be snatched up by Atari.

Sam Altman is ‘embarrassed’ that OpenAI threatened to revoke equity if exiting employees wouldn’t sign an NDA


OpenAI reportedly made exiting employees choose between keeping their vested equity and being able to speak out against the company. According to , which viewed the document in question, employees could “lose all vested equity they earned during their time at the company, which is likely worth millions of dollars” if they didn’t sign a nondisclosure and non-disparagement agreement, thanks to a provision in the off-boarding papers. OpenAI CEO Sam Altman confirmed in a on Saturday evening that such a provision did exist, but said “we have never clawed back anyone’s vested equity, nor will we do that if people do not sign a separation agreement (or don’t agree to a non-disparagement agreement).”

An OpenAI spokesperson echoed this in a statement to Vox, and Altman said the company “was already in the process of fixing the standard exit paperwork over the past month or so.” But as Vox notes in its report, at least one former OpenAI employee has spoken publicly about sacrificing equity by declining to sign an NDA upon leaving. Daniel Kokotajlo recently on an online forum that this decision led to the loss of equity likely amounting to “about 85 percent of my family’s net worth at least.”

In Altman’s response, the CEO apologized and said he was “embarrassed” after finding out about the provision, which he claims he was previously unaware of. “[T]here was a provision about potential equity cancellation in our previous exit docs; although we never clawed anything back, it should never have been something we had in any documents or communication,” he wrote on X. “this is on me and one of the few times i’ve been genuinely embarrassed running openai; i did not know this was happening and i should have [sic].” In addition to acknowledging that the company is changing the exit paperwork, Altman went on to say, “[I]f any former employee who signed one of those old agreements is worried about it, they can contact me and we’ll fix that too.”

All of this comes after two more high-profile resignations from OpenAI this week. OpenAI co-founder and Chief Scientist that he was leaving the company, and was followed soon after by Jan Leike, who was a team leader on OpenAI’s .



iFixit’s teardown of the new M4 iPad Pro reveals an easier-to-replace battery


The new 13-inch M4 iPad Pro is really, really thin. That’s inevitably going to make certain aspects of repairing the device even more difficult, which iFixit confirmed in a teardown published this weekend. But it does shine in one area — when it comes to replacing the battery, Apple made some seriously helpful changes.

“For the first time in an iPad Pro, we’re able to remove the battery immediately after removing the screen,” Teardown Tech Shahram Mokhtari wrote in a blog post. Mokhtari notes that “immediately is relative,” as there are still some screws and brackets to remove before the battery can be taken out, and the video documenting the process shows it takes a bit of work to get to the pull tabs beneath the batteries, but the new setup still shaves hours off the process compared to earlier models.

“The fact that you can remove the battery without having to remove every major component inside this device is still a huge win for repairability,” Mokhtari says in the video. “It’s a massive improvement over the previous generation.” Everything else, on the other hand, is going to be pretty tricky to repair without causing damage. “From the daughterboard to the speakers and coax cables, we found a whole bunch of stuff that’s glued down because there just isn’t enough space for screws.”

And, the teardown shows the new Apple Pencil Pro is a repairability nightmare. Mokhtari — who got cut by the Pencil while trying to get to its insides — called it “a disposable piece of crap once the battery dies.”

Threads search will finally be usable with ‘recent’ tab rollout


Threads is inching closer to becoming an actually useful source for real-time news and updates. The app is finally rolling out the ability to search posts in order of recency, after the feature last month.

“In an effort to make it easier to find timely, relevant content on Threads, we’re introducing a Recent tab for your searches,” Instagram’s Adam Mosseri wrote in . “Search results here are still evaluated for quality, but you can now see them in chronological order.”

The change has been a long requested one from users hoping Meta’s app will one day be a source of breaking news and real-time information the way that Twitter historically functioned. Being able to search for topics and keywords and find the most recent results is key to finding up-to-date details and commentary about breaking news, sports and anything else happening in real time.

On the other hand, Meta has also made it clear that it would prefer “news” to not be what Threads is known for. Mosseri has said he doesn’t want to “encourage” hard news on Threads and the company actively political content. Threads’ default “for you” algorithm is also known for surfacing days-old posts, random personal stories and other content that’s not exactly timely.

It’s also worth pointing out that Threads’ new recency filter in search is not the same as the “latest” search filter on X. As Mosseri noted in his post, Meta still hides an unknown number of posts in search results that have been “evaluated for quality,” so Threads search will never surface all of the posts containing your search terms. But being able to at least find posts that aren’t a few days old should make looking for timely information a lot less frustrating.