How One Facebook Worker Unfriended the Giant Social Network

Former Facebook employee Frances Haugen speaks during a hearing of the Senate Commerce, Science, and Transportation Subcommittee on Consumer Protection, Product Safety, and Data Security, on Capitol Hill, Tuesday, Oct. 5, 2021, in Washington. (AP Photo/Alex Brandon)
Former Facebook employee Frances Haugen speaks during a hearing of the Senate Commerce, Science, and Transportation Subcommittee on Consumer Protection, Product Safety, and Data Security, on Capitol Hill, Tuesday, Oct. 5, 2021, in Washington. (AP Photo/Alex Brandon)
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How One Facebook Worker Unfriended the Giant Social Network

Former Facebook employee Frances Haugen speaks during a hearing of the Senate Commerce, Science, and Transportation Subcommittee on Consumer Protection, Product Safety, and Data Security, on Capitol Hill, Tuesday, Oct. 5, 2021, in Washington. (AP Photo/Alex Brandon)
Former Facebook employee Frances Haugen speaks during a hearing of the Senate Commerce, Science, and Transportation Subcommittee on Consumer Protection, Product Safety, and Data Security, on Capitol Hill, Tuesday, Oct. 5, 2021, in Washington. (AP Photo/Alex Brandon)

Less than two years after Facebook hired Frances Haugen to help correct dangerous distortions spilling across its platform, she had seen enough.

The idealism she and countless others had invested in promises by the world’s biggest social network to fix itself had been woefully misplaced. The harm Facebook and sibling Instagram were doing to users was rivaled only by the company’s resistance to change, she concluded. And the world beyond Facebook needed to know.

When the 37-year-old data scientist went before Congress and the cameras last week to accuse Facebook of pursuing profit over safety, it was likely the most consequential choice of her life.

And for a still-young industry that has mushroomed into one of society’s most powerful forces, it spotlighted a rising threat: The era of the Big Tech whistleblower has most definitely arrived.

“There has just been a general awakening amongst workers at the tech companies asking, `What am I doing here?’” said Jonas Kron of Trillium Investment Management, which has pushed Google to increase protection for employees who raise the alarm about corporate misdeeds.

“When you have hundreds of thousands of people asking that question, it’s inevitable you’ll get more whistleblowing,” he said.

Haugen is by far the most visible of those whistleblowers. And her accusations that Facebook’s platforms harm children and incite political violence -- backed up by thousands of pages of the company’s own research -- may well be the most damning.

But she is just the latest to join in a growing list of workers from across tech determined to speak out. Nearly all are women, and observers say that’s no coincidence.

Even after making inroads, women and especially women of color remain outsiders in the heavily male tech sector, said Ellen Pao, an executive who sued Silicon Valley investment firm Kleiner Perkins in 2012 for gender discrimination.

That status positions them to be more critical and see “some of the systemic issues in a way that people who are part of the system and who are benefiting from it the most and who are entrenched in it, may not be able to process,” she said.

In recent years, workers at companies including Google, Pinterest, Uber and Theranos, as well as others from Facebook, have sounded alarms about what they say are gross abuses of power by those in control.

Their new outspokenness is ruffling an industry that touts its power to improve society, while earning billions. Workers, many well educated and highly paid, have long embraced that ethic. But for a growing number, faith in the company line is fading.

Still, there is a difference between stewing about your company’s failings and revealing them to the world. There is a price to be paid, and Haugen certainly knew that.

“It absolutely is terrifying, terrifying to get to the point of doing what she did. And you know that the moment you start your testimony, your life is going to change,” said Wendell Potter, a former health insurance executive who blew the whistle on his own industry’s practices.

Since coming before Congress Tuesday, Haugen has receded from public view. A representative said she and her lawyer were unavailable for comment.

The Iowa-born daughter of a doctor and an academic turned pastor, Haugen arrives in the spotlight with sparkling credentials, including a Harvard business degree and multiple patents.
Long before she became a whistleblower, Haugen was something of a local wunderkind.

Raised near the University of Iowa campus, where her father taught medicine, Haugen was a member of a high school engineering team ranked in the country’s top 10. Years later, when the local newspaper wrote about Haugen’s landing at Google, one of her elementary school teachers recalled her as “horrifically bright,” while not at all self-conscious.

In the fall of 2002, she left for the newly established Olin College of Engineering, outside Boston, to join its first class of 75.

Many had declined offers from top universities, attracted by Olin’s offer of a free education to the first arrivals, and the chance to join in creating something new, said Lynn Andrea Stein, a computer science professor.

But the school couldn’t get its accreditation until it began producing graduates, making it a non-entity in the eyes of some employers and presenting a hurdle for Haugen and others like her.

“The Google folks actually threw out her application without reading it,” Stein said.

Stein helped persuade the company to change its mind, sending an email that described Haugen as a “voracious learner and an absolute can-do person” with terrific work ethic and communication and leadership skills.

At Google, Haugen worked on a project to make thousands of books accessible on mobile phones, and another to help create a fledgling social network.

Google paid for Haugen to get a graduate business degree at Harvard, where a classmate said even then they were having deep discussions about the societal effects of new technology.
“Smartphones were just becoming a thing. We talked a lot of about ethical use of data and building things the wrong way,” said Jonathan Sheffi, who graduated with Haugen in 2011. “She was always super-interested in the intersection of people’s well-being and technology.”

Sheffi said he laughed when he saw social media posts in recent days questioning Haugen’s motivations for whistleblowing.
“Nobody puts Frances up to anything,” he said.

While at Harvard, Haugen worked with another student to create an online dating platform to put like-minded mates together, a template the partner later turned into dating app Hinge.

Haugen returned to Google, before moving on to jobs at Yelp and Pinterest, at each stop working with the algorithms engineered to understand the desires of users and put them together with people and content that fit their interests.

In late 2018, she was contacted by a recruiter from Facebook. In recent interviews on “60 Minutes” and with the Wall Street Journal, Haugen recalled telling the company that she might be interested in a job if it involved helping the platform address democracy and misinformation. She said she told managers about a friend who had been drawn to white nationalism after spending time in online forums, and her desire to prevent that from happening to others.

In June 2019, she joined a Facebook team that focused on network activity surrounding international elections. But she has said she grew frustrated as she became more aware of widespread misinformation online that stoked violence and abuse and that Facebook would not adequately address.

She resigned in May, but only after working for weeks to sift through internal company research and copy thousands of documents. Still, she told congressional investigators, she is not out to destroy Facebook, just change it.

“I believe in the potential of Facebook,” she said during her testimony last week. “We can have social media we enjoy, that connects us, without tearing apart our democracy, putting our children in danger, and sowing ethnic violence around the world. We can do better.”

Maybe, but those who know the industry say Facebook and other tech giants will dig in.

“There’s going to be a clamp down internally. There already has been,” said Ifeoma Ozoma, a whistleblower at Pinterest now trying to encourage others in tech to expose corporate misconduct. “In that way there’s a chilling effect through the increased surveillance that employees will be under.”

Within the larger community of whistleblowers, many are rooting for Haugen, praising what they see as her gutsiness, calm intellect and the forethought to take the paperwork that reinforces her case.

“What she did right was she got all her documentation in a row and she did that up front. ... That’s going to be her power,” said Eileen Foster, a former executive at Countrywide Financial who struggled to find another job in banking after exposing widespread fraud in the company’s approval of subprime loans in 2008.

Sophie Zhang, a former Facebook employee who last year accused the social network of ignoring fake accounts used to undermine foreign elections, said she was surprised the company had not caught Haugen when she was going through company research. Fierce denials by its executives now betray their unwillingness to change.

“I think they’ve fallen into a trap where they keep making denials and hunkering down and becoming more incendiary,” she said. “And this causes more people to come forward.”

Still, Haugen’s actions could well make it impossible for her to land another job in the industry, said Foster. And if Facebook goes after her legally for taking documents, it will have the resources for battle that a lone employee can never hope to match.

Foster recalls how her boss at Countrywide, an ally, begged her to give it up.

“He said ‘Eileen what are you doing? You are just a speck. A speck!’ And I said, `Yeah, but I’m a pissed-off speck,’” Foster said.

Years later, after enduring villainization by colleagues, rejections by employers and a lengthy court battle over her claims, she knows better. But she does not regret her choices. And she senses a similar conviction in Haugen, though their whistleblowing is separated by a generation.

“I wish the best for Frances,” she said.



Chipmaker Intel Falls as AI Competition Hurts Forecast

Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
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Chipmaker Intel Falls as AI Competition Hurts Forecast

Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)

Intel shares slumped more than 12% on Friday after a downbeat forecast signaled that the boom in AI was diverting enterprise spending away from its traditional data center chips.

The stock has fallen around 30% so far this year as Intel trails rival chip companies such as Nvidia in producing advanced artificial intelligence (AI) chips and components.

Intel forecast second-quarter revenue of $12.5 billion to $13.5 billion, compared with analysts' average estimate of $13.57 billion, according to LSEG data.

"While we believe they are doing everything they can to try to repair things, it is clear the company is profoundly broken, and it will take years to see the fruits of their (currently exhaustive) labor," Bernstein analysts said in a note.

Intel is planning a $100 billion spending spree across four US states to build and expand factories. It also unveiled a new AI chip earlier this year to keep up with competition.

Friday's drop was set to erase nearly $19 billion from the company's market value, which stood at $149.4 billion as of Thursday's close.

Businesses have prioritized spending on advanced and speedy AI server chips, hurting demand for Intel's central processing units, which had long been the mainstay chip powering data centers.

Although encouraged by the launch of Intel's Gaudi 3 AI chip, "we worry the company will continue to cede wallet share within the overall data center compute market to the likes of Nvidia and Arm", Goldman Sachs analysts said.

Still, Intel is optimistic that a fresh upgrade cycle for personal computers around a new version of Microsoft's Windows operating system will help PC sales in the second half of the year. That could translate to more demand for its chips used in those devices.

The company's earnings contrasted strong results from Microsoft and Alphabet, which are Nvidia clients and also design in-house chips for their data centers.


ByteDance Says 'No Plans' to Sell TikTok after US Ban Law

A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States. OLIVIER DOULIERY / AFP/File
A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States. OLIVIER DOULIERY / AFP/File
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ByteDance Says 'No Plans' to Sell TikTok after US Ban Law

A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States. OLIVIER DOULIERY / AFP/File
A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States. OLIVIER DOULIERY / AFP/File

Chinese tech giant ByteDance has said it has no plans to sell TikTok after a new US law put it on a deadline to divest from the hugely popular video platform or have it banned in the United States.
US lawmakers set the nine-month deadline on national security grounds, alleging that TikTok can be used by the Chinese government for espionage and propaganda as long as it is owned by ByteDance, said AFP.
The Information, a tech-focused US news site, reported that ByteDance was looking at scenarios for selling TikTok without the powerful secret algorithm that recommends videos to its more than one billion users around the world.
ByteDance denied it was considering a sale.
"Foreign media reports about ByteDance exploring the sale of TikTok are untrue," the company posted Thursday on Toutiao, a Chinese-language platform it owns.
"ByteDance does not have any plans to sell TikTok."
TikTok has been a political and diplomatic hot potato for years, first finding itself in the crosshairs of former president Donald Trump's administration, which tried unsuccessfully to ban it.
It has forcefully denied any link to the Chinese government, and said it has not and will not share US user data with Beijing.
TikTok says it has also spent around $1.5 billion on "Project Texas", under which US user data would be stored in the United States.
Its critics say the data is only part of the problem, and that the TikTok recommendation algorithm -- the "secret sauce" for its success -- must also be disconnected from ByteDance.
TikTok CEO Shou Zi Chew has said the company will take the fight against the new law to the courts, but some experts believe that for the US Supreme Court, national security considerations could outweigh free speech protection.
Bullish investors
The estimated valuations of TikTok are in the tens of billions of dollars, and any forced sale would present major complications.
Among those with deep enough pockets, US tech giants such as Instagram-parent Meta or Google would likely be blocked from buying the app over competition concerns.
Further, many investors consider TikTok's recommendation algorithm to be its most valuable feature.
But any sale of such technology by a Chinese company would require approval from Beijing, which designated such algorithms as protected technology following Trump's attempt to ban TikTok in 2020.
Beijing has so far vocally opposed any forced sale of TikTok, saying it will take all necessary measures to protect Chinese companies.
While TikTok is a global phenomenon, it represents a small fraction of ByteDance's revenue, according to analysts and investors.
ByteDance has enjoyed explosive growth in recent years, becoming one of the most valuable companies in the world. Its international investors, including US firms General Atlantic and SIG as well as Japan's SoftBank, have stakes worth billions.
"TikTok US is a very small part of the overall business. It is an exciting part of the story, for sure, but... relative to the overall size, it's a very small part," ByteDance investor Mitchell Green, of US-based Lead Edge Capital, told CNBC television last month.
"If it was kicked out of the US, we would not sell."


AI Spending Worries Cast Gloom over Alphabet, Microsoft

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo
An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo
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AI Spending Worries Cast Gloom over Alphabet, Microsoft

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo
An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo

Investors appear to be losing patience with Big Tech's prodigious artificial intelligence investments this week after Meta Platforms signaled deeper spending and a long road to profitability.
The concession from Meta in its quarterly report late on Wednesday cast a cloud over Microsoft and Alphabet , which will both report quarterly earnings on Thursday, Reuters said.
Meta's stock sank 15% in extended trade after it forecast higher AI spending next year, while Microsoft was down 2%, Alphabet fell 3% and Nvidia dropped 1.4% in reaction.
Wall Street's heavyweight tech-related companies have been locked in a fierce battle to advance generative AI, which can create text, videos and photos from prompts and is seen as the next frontier in tech.
During Meta's earnings conference call, analysts peppered CEO Mark Zuckerberg with questions about how the company was pacing its AI investments. One analyst asked whether Meta was spending more because it saw an even bigger opportunity from AI.
"I think we've gotten more ambitious and optimistic on AI," Zuckerberg responded, pointing to Meta's recent launches of new AI models. "So all of that basically encourages me to make sure that we're investing to stay at the leading edge of this."
Alphabet and Microsoft both said earlier this year when they reported fourth-quarter results that they expected rising AI costs. The investor reaction on Wednesday indicated deepening concerns.
In a research note on Monday about Alphabet, analysts from New Street Research said the potential for materially higher capital expenditures was a worry ahead of results on Thursday.
The research firm said it now expects Alphabet's full-year capital expenditures to be $45.9 billion, up from its previous estimate of $42.7 billion.
Google has been working to catch up in the generative AI race and released Gemini, a model that can understand and create different types of information including text, audio and video.
Creating content with generative AI is energy-intensive, and Zuckerberg cited the cost as a reason for Meta's higher expenses.
Meanwhile, Microsoft has positioned itself to be a winner in AI due to its partnership with OpenAI, which kicked off the generative AI craze last year with ChatGPT, said analysts from Jefferies in a note on March 31.
Microsoft has integrated chatbots into its suite of Office products and is planning to invest more in data centers.
Industry-wide, shareholders are now focused on looking for revenue, including pricing models and whether customers can find use cases that justify the cost of generative AI, Jefferies wrote.
"Last year was spent dreaming of gen AI's potential," the analysts wrote. "This year will be about moving forward with concrete steps."


South Korea's Hyundai, Kia to Launch First India-made EVs Next Year

The logo of Hyundai is pictured at the 37th Bangkok International Motor Show in Bangkok, Thailand. REUTERS/Chaiwat Subprasom
The logo of Hyundai is pictured at the 37th Bangkok International Motor Show in Bangkok, Thailand. REUTERS/Chaiwat Subprasom
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South Korea's Hyundai, Kia to Launch First India-made EVs Next Year

The logo of Hyundai is pictured at the 37th Bangkok International Motor Show in Bangkok, Thailand. REUTERS/Chaiwat Subprasom
The logo of Hyundai is pictured at the 37th Bangkok International Motor Show in Bangkok, Thailand. REUTERS/Chaiwat Subprasom

South Korea's Hyundai Motor Group will launch its first India-manufactured electric vehicles by 2025 as the parent of the Hyundai and Kia brands looks to boost its presence in the nascent space dominated by Tata Motors.
Production of Hyundai's locally manufactured EVs will begin by the end of 2024 and will be launched by 2025, along with Kia's India-made EV, the Hyundai Motor Group said in a statement on Thursday, adding that it would unveil five models by 2030, said Reuters.
Both brands will use batteries made by Exide Energy Solutions to power their EVs, they had said earlier this month.
India is the biggest market outside North America and Europe for Hyundai, where its unit is headed for a $3 billion IPO – the country's largest.
Hyundai, India's no. 2 carmaker, known for its top-selling 'Creta' sport utility vehicle, currently sells two electric models in India, the Kona and IONIQ 5, neither of which are produced in the country. Kia's lone electric offering, the EV6, is imported.
The company also reaffirmed Hyundai's target of reaching annual production of 1 million by 2025, adding it would expand capacity at Kia to 432,000 from about 300,000. The combined capacity will grow to 1.5 million units.
Earlier this year, Hyundai completed the acquisition of a former Chevrolet plant in western Maharashtra state as part of its push to get production to 1 million units.
The announcements came during Hyundai Motor Group Executive Chair Euisun Chung's visit to India – his second in less than a year.


Apple Loses Top Spot in China Market with Shipments Down 6.6% in Q1

FILE PHOTO: People look at the new iPhone 15 Pro as Apple's new iPhone 15 officially goes on sale across China at an Apple store in Shanghai, China September 22, 2023. REUTERS/Aly Song/File Photo
FILE PHOTO: People look at the new iPhone 15 Pro as Apple's new iPhone 15 officially goes on sale across China at an Apple store in Shanghai, China September 22, 2023. REUTERS/Aly Song/File Photo
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Apple Loses Top Spot in China Market with Shipments Down 6.6% in Q1

FILE PHOTO: People look at the new iPhone 15 Pro as Apple's new iPhone 15 officially goes on sale across China at an Apple store in Shanghai, China September 22, 2023. REUTERS/Aly Song/File Photo
FILE PHOTO: People look at the new iPhone 15 Pro as Apple's new iPhone 15 officially goes on sale across China at an Apple store in Shanghai, China September 22, 2023. REUTERS/Aly Song/File Photo

Apple lost its crown as China's biggest smartphone seller in the first quarter of 2024 as its smartphone shipments fell 6.6% from a year ago amid intense competition, preliminary data from research firm IDC showed on Thursday.

Honor and Huawei were tied for the top spot, with Honor's market share rising to 17.1% and Huawei's share climbing to 17%, IDC said, while the iPhone maker's market share fell to 15.6%.

The IDC declares a statistical tie when the difference between the share of revenue or shipments between two or more vendors is 0.1% or less.

"Apple's price promotions in the quarter were unable to mitigate the impact of the intense competition from Android players," Arthur Guo, senior research analyst at IDC China said in the report.

Overall smartphone shipments in China rose 6.5% to 69.3 million units, according to IDC.

Earlier this week, data from research firm Counterpoint showed Apple's smartphone shipments in China tumbled 19% in the first quarter of the year, the worst performance since 2020.


Huawei Launches New Software Brand for Intelligent Driving

FILE PHOTO: The logo of the Huawei Technologies Co. Ltd. is seen outside its headquarters in Shenzhen, Guangdong province, April 17, 2012. REUTERS/Tyrone Siu/File Photo
FILE PHOTO: The logo of the Huawei Technologies Co. Ltd. is seen outside its headquarters in Shenzhen, Guangdong province, April 17, 2012. REUTERS/Tyrone Siu/File Photo
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Huawei Launches New Software Brand for Intelligent Driving

FILE PHOTO: The logo of the Huawei Technologies Co. Ltd. is seen outside its headquarters in Shenzhen, Guangdong province, April 17, 2012. REUTERS/Tyrone Siu/File Photo
FILE PHOTO: The logo of the Huawei Technologies Co. Ltd. is seen outside its headquarters in Shenzhen, Guangdong province, April 17, 2012. REUTERS/Tyrone Siu/File Photo

Chinese tech company Huawei unveiled on Wednesday a new software brand for intelligent driving, marking its latest push to become a major player in the electric vehicle industry.
The new brand Qiankun, symbolizing a combination of heaven and the Kunlun Mountains, plans to provide self-driving systems involving the driving chassis, audio and driver's seat, Jin Yuzhi, CEO of Huawei's Intelligent Automotive Solution (IAS) business unit, said during an event ahead of the Beijing auto show.
"2024 will be the first year for mass commercialization of smart driving and the cumulative number of cars on road equipped with the Huawei self-driving system will top 500,000 by the year-end," Reuters quoted Jin as saying.
He also expected within a year more than 10 car models adopting Huawei’s Qiankun system would hit the market.
The Shenzhen-based tech conglomerate launched its smart car unit in 2019 with the aim that it could become the equivalent of German automotive supplier Bosch of the intelligent EV era and supply software and components to partners.
Huawei said in November that the unit would be spun off into a new company which would receive the unit's core technologies and resources and take investment from partners such as automaker Changan Auto.
It has also unveiled seven EV models in partnership with Chinese automakers so far and they are selling well, Jin said.
They include three Aito brand models under partnership with Seres, the Luxeed S7 sedan co-developed with Chery , two models with Changan Auto-backed Avatr and one with Beijing Automotive Group (BAIC)-owned Arcfox.
On Tuesday, Huawei also unveiled the S9 sedan, the first model under the premium Stelato brand it launched with BAIC.
Its diversification into EVs comes amid an intensifying price war in the world's largest auto market, which is grappling with slowing sales momentum and deepening overcapacity concerns as more than 40 brands vie for consumer attention.
Earlier this month, Huawei-backed Aito offered discounts of up to 20,000 yuan ($2,760) on its new M7 SUVs until the end of April.


Apple Announces Event on May 7 amid Reports of New iPad Model Launches

People stand outside a recently-opened Apple Store in Shanghai's Jing'an district on March 26, 2024. (AFP)
People stand outside a recently-opened Apple Store in Shanghai's Jing'an district on March 26, 2024. (AFP)
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Apple Announces Event on May 7 amid Reports of New iPad Model Launches

People stand outside a recently-opened Apple Store in Shanghai's Jing'an district on March 26, 2024. (AFP)
People stand outside a recently-opened Apple Store in Shanghai's Jing'an district on March 26, 2024. (AFP)

Apple will hold an event on May 7, the company said on Tuesday, amid reports that it would roll out the long-anticipated revamped versions of iPad Pro and iPad Air next month.

The Cupertino, California-based company did not disclose more details about the event that would start at 7 a.m. PT (2 p.m. GMT).

Bloomberg News reported in March that Apple's overseas suppliers had ramped up production of the new iPads and a launch was planned for early May.

The new models would represent Apple's first overhaul to that lineup since 2018.

The potential launch comes at a time as iPad sales have declined. The sales dropped 25% to $7.02 billion in the first quarter, while those of iPhone, its most popular product, have also been slowing.

The tablet market is under duress as economic uncertainty looms and consumers cut back on non-essential spending, but Apple expects to combat the slump in demand with new products.

Apple's iPad sales contributed just 5.9% to the company's total net sales of $119.58 billion in the first quarter ended Dec. 30.

Apple is also scheduled to hold its Worldwide Developers Conference from June 10 to June 14.


Microsoft Launches Lightweight AI Model

A Microsoft sign is pictured at a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)
A Microsoft sign is pictured at a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)
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Microsoft Launches Lightweight AI Model

A Microsoft sign is pictured at a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)
A Microsoft sign is pictured at a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)

Microsoft on Tuesday launched a lightweight artificial intelligence model, as it looks to attract a wider client base with cost-effective options.

The new version called Phi-3-mini is the first of the three small language models (SLM) to be released by the company, as it stakes its future on a technology that is expected to have a wide-ranging impact on the world and the way people work.

"Phi-3 is not slightly cheaper, it's dramatically cheaper, we're talking about a 10x cost difference compared to the other models out there with similar capabilities," said Sébastien Bubeck, Microsoft's vice president of GenAI research.

SLMs are designed to perform simpler tasks, making it easier for use by companies with limited resources, the company said.

Phi-3-mini will be available immediately on Microsoft cloud service platform Azure's AI model catalog, machine learning model platform Hugging Face, and Ollama, a framework for running models on a local machine, the company said.

Last week, Microsoft invested $1.5 billion in UAE-based AI firm G42. It has also previously partnered with French startup Mistral AI to make their models available through its Azure cloud computing platform.


Adobe to Bring Full AI Image Generation to Photoshop this Year

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo
An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo
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Adobe to Bring Full AI Image Generation to Photoshop this Year

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo
An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo

Adobe said on Tuesday it plans to place a tool for full artificial intelligence image generation in its Photoshop software later this year.
Adobe's image and video editing tools are widely used by creative professionals, but it faces rising competition from startups such as Microsoft-backed OpenAI, Midjourney and Stability AI, all of which offer services that can generate images from text prompts, Reuters said.
Adobe is developing its own image-generation AI system called Firefly, which is trained on data that Adobe has rights to, in order to avoid copyright infringement claims against users.
Adobe previously released image-generation tools in Photoshop that can fill in or expand parts an existing image. At a conference in London on Tuesday, the company said full image generation will come later this year, based on a new AI system called Firefly Image 3.
Much of Adobe's focus has been on speeding up the work of professionals who use its software. The new image-generation tool will have the ability to tap a user's uploaded image as a reference for the general composition of an image.
For example, a designer could make a quick sketch of a scene on a napkin, snap a photo of that napkin with a smartphone and then ask Photoshop to generate fully featured images in a variety of styles, said Ely Greenfield, chief technology officer for digital media at Adobe.
"Rather than having to very carefully describe exactly what goes where and try to make sure that I'm specifying the things I want things and that I don't, it's borrowing from the reference. So this is an amazingly powerful capability," Greenfield said.
Adobe said a test "beta" version of the software is available to some users on Tuesday but did not give a date for general availability.


Tencent to Release ‘Dungeon and Fighter’ Mobile Game in May 

A Tencent sign is seen at the World Internet Conference (WIC) in Wuzhen, Zhejiang province, China, October 20, 2019. (Reuters)
A Tencent sign is seen at the World Internet Conference (WIC) in Wuzhen, Zhejiang province, China, October 20, 2019. (Reuters)
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Tencent to Release ‘Dungeon and Fighter’ Mobile Game in May 

A Tencent sign is seen at the World Internet Conference (WIC) in Wuzhen, Zhejiang province, China, October 20, 2019. (Reuters)
A Tencent sign is seen at the World Internet Conference (WIC) in Wuzhen, Zhejiang province, China, October 20, 2019. (Reuters)

Chinese tech giant Tencent Holdings said on Monday it will release its much-anticipated "Dungeon and Fighter" mobile game on May 21 after seven years of development.

Officially named "Dungeon and Fighter: Origin", the action game, developed by Korean firm Nexon, is a mobile adaptation of the "Dungeon and Fighter" computer game, one of the world's most profitable computer games.

Tencent's shares rose about 4.5% on Monday morning.

The game was already released in South Korea in 2022 and became an instant hit. But its China release was delayed after the government cracked down on the gaming industry between 2018 and 2022.

In a February note, investment bank Jefferies expected the game to "secure a top 5 spot in revenue rankings" in China and to potentially generate between $600 million to $1.1 billion in annualized revenues there over time. But the bank expects a "cautious approach to engagement and monetization" during its initial launch.

Last month, Tencent conducted a closed test with 300,000 players and had delivered strong results. In a note this month, HSBC wrote: "Testing for DnFm yielded solid performance in metrics like [daily active users], retention rate and user's paying propensity."