Graphics

Graphics Artists In China Push Back On AI and Its Averaging Effect (theverge.com) 33

Graphic artists in China are pushing back against AI image generators, which they say "profoundly shifts clients' perception of their work, specifically in terms of how much that work costs and how much time it takes to produce," reports The Verge. "Freelance artists or designers working in industries with clients that invest in stylized, eye-catching graphics, like advertising, are particularly at risk." From the report: Long before AI image generators became popular, graphic designers at major tech companies and in-house designers for large corporate clients were often instructed by managers to crib aesthetics from competitors or from social media, according to one employee at a major online shopping platform in China, who asked to remain anonymous for fear of retaliation from their employer. Where a human would need to understand and reverse engineer a distinctive style to recreate it, AI image generators simply create randomized mutations of it. Often, the results will look like obvious copies and include errors, but other graphic designers can then edit them into a final product.

"I think it'd be easier to replace me if I didn't embrace [AI]," the shopping platform employee says. Early on, as tools like Stable Diffusion and Midjourney became more popular, their colleagues who spoke English well were selected to study AI image generators to increase in-house expertise on how to write successful prompts and identify what types of tasks AI was useful for. Ultimately, it was useful for copying styles from popular artists that, in the past, would take more time to study. "I think it forces both designers and clients to rethink the value of designers," Jia says. "Is it just about producing a design? Or is it about consultation, creativity, strategy, direction, and aesthetic?" [...]

Across the board, though, artists and designers say that AI hype has negatively impacted clients' view of their work's value. Now, clients expect a graphic designer to produce work on a shorter timeframe and for less money, which also has its own averaging impact, lowering the ceiling for what designers can deliver. As clients lower budgets and squish timelines, the quality of the designers' output decreases. "There is now a significant misperception about the workload of designers," [says Erbing, a graphic designer in Beijing who has worked with several ad agencies and asked to be called by his nickname]. "Some clients think that since AI must have improved efficiency, they can halve their budget." But this perception runs contrary to what designers spend the majority of their time doing, which is not necessarily just making any image, Erbing says.

Advertising

A Developer Built a Real-World Ad Blocker For Snap Spectacles (uploadvr.com) 11

An anonymous reader quotes a report from UploadVR: Software developer Stijn Spanhove used the newest SDK features of Snap OS to build a prototype of [a real-world ad blocker for Snap Spectacles]. If you're unfamiliar, Snap Spectacles are a bulky AR glasses development kit available to rent for $99/month. They run Snap OS, the company's made-for-AR operating system, and developers build apps called Lenses for them using Lens Studio or WebXR.

Spanhove built the real-world ad blocker using the new Depth Module API of Snap OS, integrated with the vision capability of Google's Gemini AI via the cloud. The Depth Module API caches depth frames, meaning that coordinate results from cloud vision models can be mapped to positions in 3D space. This enables detecting and labeling real-world objects, for example. Or, in the case of Spanhove's project, projecting a red rectangle onto real-world ads.

However, while the software approach used for Spanhove's real-world ad blocker is sound, two fundamental hardware limitations mean it wouldn't be a practical way to avoid seeing ads in your reality. Firstly, the imagery rendered by see-through transparent AR systems like Spectacles isn't fully opaque. Thus, as you can see in the demo clip, the ads are still visible through the blocking rectangle. The other problem is that see-through transparent AR systems have a very limited field of view. In the case of Spectacles, just 46 degrees diagonal. So ads are only "blocked" whenever you're looking directly at them, and you'll still see them when you're not.

Government

Health Secretary Wants Every American To Be Sporting a Wearable Within Four Years (gizmodo.com) 375

Health and Human Services Secretary Robert F. Kennedy Jr. announced a major federal campaign to promote wearable health tech, aiming for every American to adopt a device within four years as part of a broader effort to "Make America Healthy Again." Gizmodo reports: RFK Jr. announced the initiative Tuesday afternoon during a House Energy and Commerce Health Subcommittee meeting to discuss the HHS' budget request for the upcoming fiscal year. In response to a question from representative Troy Balderson (R-Ohio) about wearables, Kennedy revealed that HHS will soon conduct one of the agency's largest ever advertising campaigns to promote their use. He added that in his ideal future, every American will be donning a wearable within the next four years. "It's a key part of our mission to Make America Healthy Again," RFK Jr. stated in an X post following the question.
Microsoft

Microsoft Is Calling Too Many Things 'Copilot,' Watchdog Says (businessinsider.com) 49

An anonymous reader shares a report: Microsoft has a long history of being criticized for coming up with clunky product names, and for changing them so often it's hard for customers to keep up. The company's own employees once joked in a viral video that the iPod would have been called the "Microsoft I-pod Pro 2005 XP Human Ear Professional Edition with Subscription" had it been created by Microsoft. The latest gripe among some employees and customers: The company's tendency to slap "Copilot" on everything AI.

"There is a delusion on our marketing side where literally everything has been renamed to have Copilot it in," one employee told Business Insider late last year. "Everything is Copilot. Nothing else matters. They want a Copilot tie-in for everything." Now, an advertising watchdog is weighing in. The Better Business Bureau's National Advertising Division reviewed Microsoft's advertising for its Copilot AI tools. NAD called out Microsoft's "universal use of the product description as 'Copilot'" and said "consumers would not necessarily understand the difference," according to a recent report from the watchdog.

"Microsoft is using 'Copilot' across all Microsoft Office applications and Business Chat, despite differences in functionality and the manual steps that are required for Business Chat to produce the same results as Copilot in a specific Microsoft Office app," NAD further explained in an email to BI. NAD did not mention any specific recommendations on product names. But it did say Microsoft should modify claims that Copilot works "seamlessly across all your data" because all of the company's tools with the Copilot moniker don't work together continuously in a way consumers might expect.

Facebook

WhatsApp Introduces Ads in Its App (nytimes.com) 53

An anonymous reader shares a report: When Facebook bought WhatsApp for $19 billion in 2014, the messaging app had a clear focus. No ads, no games and no gimmicks. For years, that is what WhatsApp's two billion users -- many of them in Brazil, India and other countries around the world -- got. They chatted with friends and family unencumbered by advertising and other features found on social media. Now that is set to change.

On Monday, WhatsApp said it would start showing ads inside its app for the first time. The promotions will appear only in an area of the app called Updates, which is used by around 1.5 billion people a day. WhatsApp will collect some data on users to target the ads, such as location and the device's default language, but it will not touch the contents of messages or whom users speak with. The company added that it had no plans to place ads in chats and personal messages.

[...] In-app ads are a significant change from WhatsApp's original philosophy. Jan Koum and Brian Acton, who founded WhatsApp in 2009, were committed to building a simple and quick way for friends and family to communicate with end-to-end encryption, a method of keeping texts, photos, videos and phone calls inaccessible by third parties. Both left the company seven years ago. Since then, Mark Zuckerberg, the chief executive of Facebook, now Meta, has focused on WhatsApp's growth and user privacy while also melding the app into the company's other products, including Instagram and Messenger.

Red Hat Software

Rocky and Alma Linux Still Going Strong. RHEL Adds an AI Assistant (theregister.com) 21

Rocky Linux 10 "Red Quartz" has reached general availability, notes a new article in The Register — surveying the differences between "RHELatives" — the major alternatives to Red Hat Enterprise Linux: The Rocky 10 release notes describe what's new, such as support for RISC-V computers. Balancing that, this version only supports the Raspberry Pi 4 and 5 series; it drops Rocky 9.x's support for the older Pi 3 and Pi Zero models...

RHEL 10 itself, and Rocky with it, now require x86-64-v3, meaning Intel "Haswell" generation kit from about 2013 onward. Uniquely among the RHELatives, AlmaLinux offers a separate build of version 10 for x86-64-v2 as well, meaning Intel "Nehalem" and later — chips from roughly 2008 onward. AlmaLinux has a history of still supporting hardware that's been dropped from RHEL and Rocky, which it's been doing since AlmaLinux 9.4. Now that includes CPUs. In comparison, the system requirements for Rocky Linux 10 are the same as for RHEL 10. The release notes say.... "The most significant change in Rocky Linux 10 is the removal of support for x86-64-v2 architectures. AMD and Intel 64-bit architectures for x86-64-v3 are now required."

A significant element of the advertising around RHEL 10 involves how it has an AI assistant. This is called Red Hat Enterprise Linux Lightspeed, and you can use it right from a shell prompt, as the documentation describes... It's much easier than searching man pages, especially if you don't know what to look for... [N]either AlmaLinux 10 nor Rocky Linux 10 includes the option of a helper bot. No big surprise there... [Rocky Linux] is sticking closest to upstream, thanks to a clever loophole to obtain source RPMs. Its hardware requirements also closely parallel RHEL 10, and CIQ is working on certifications, compliance, and special editions. Meanwhile, AlmaLinux is maintaining support for older hardware and CPUs, which will widen its appeal, and working with partners to ensure reboot-free updates and patching, rather than CIQ's keep-it-in-house approach. All are valid, and all three still look and work almost identically... except for the LLM bot assistant.

Advertising

Amazon Doubles Prime Video Ads to 6 Minutes Per Hour 79

Amazon has quietly doubled the ad load on Prime Video to 4-6 minutes per hour, up from the 2-3.5 minutes initially discussed when ads launched in 2024. AdWeek reports: According to six ad buyers and documents reviewed by ADWEEK, the current ad load on Prime Video now ranges from four to six minutes per hour. And while that could bring down CPMs, buyers will be watching whether this impacts user experience. "Prime Video ad load has gradually increased to four to six minutes per hour," an Amazon representative wrote to an ad buyer in an email obtained by ADWEEK. The exchange occurred earlier this month.

The increase, which Amazon had telegraphed to investors but has not publicly acknowledged to consumers, gives the company significantly more inventory to sell across its rapidly expanding streaming business. "They told us the ad load would be increasing," said Kendra Tang, programmatic supervisor at Rain the Growth Agency. "That's been confirmed recently when we noticed more avails in the system."
Advertising

Amazon Is About To Be Flooded With AI-Generated Video Ads 30

Amazon has launched its AI-powered Video Generator tool in the U.S., allowing sellers to quickly create photorealistic, motion-enhanced video ads often with a single click. "We'll likely see Amazon retailers utilizing AI-generated video ads in the wild now that the tool is generally available in the U.S. and costs nothing to use -- unless the ads are so convincing that we don't notice anything at all," says The Verge. From the report: New capabilities include motion improvements to show items in action, which Amazon says is best for showcasing products like toys, tools, and worn accessories. For example, Video Generator can now create clips that show someone wearing a watch on their wrist and checking the time, instead of simply displaying the watch on a table. The tool generates six different videos to choose from, and allows brands to add their logos to the finished results.

The Video Generator can now also make ads with multiple connected scenes that include humans, pets, text overlays, and background music. The editing timeline shown in Amazon's announcement video suggests the ads max out at 21 seconds.. The resulting ads edge closer to the traditional commercials we're used to seeing while watching TV or online content, compared to raw clips generated by video AI tools like OpenAI's Sora or Adobe Firefly.

A new video summarization feature can create condensed video ads from existing footage, such as demos, tutorials, and social media content. Amazon says Video Generator will automatically identify and extract key clips to generate new videos formatted for ad campaigns. A one-click image-to-video feature is also available that creates shorter GIF-style clips to show products in action.
Privacy

Meta and Yandex Are De-Anonymizing Android Users' Web Browsing Identifiers (github.io) 77

"It appears as though Meta (aka: Facebook's parent company) and Yandex have found a way to sidestep the Android Sandbox," writes Slashdot reader TheWho79. Researchers disclose the novel tracking method in a report: We found that native Android apps -- including Facebook, Instagram, and several Yandex apps including Maps and Browser -- silently listen on fixed local ports for tracking purposes.

These native Android apps receive browsers' metadata, cookies and commands from the Meta Pixel and Yandex Metrica scripts embedded on thousands of web sites. These JavaScripts load on users' mobile browsers and silently connect with native apps running on the same device through localhost sockets. As native apps access programmatically device identifiers like the Android Advertising ID (AAID) or handle user identities as in the case of Meta apps, this method effectively allows these organizations to link mobile browsing sessions and web cookies to user identities, hence de-anonymizing users' visiting sites embedding their scripts.

This web-to-app ID sharing method bypasses typical privacy protections such as clearing cookies, Incognito Mode and Android's permission controls. Worse, it opens the door for potentially malicious apps eavesdropping on users' web activity.

While there are subtle differences in the way Meta and Yandex bridge web and mobile contexts and identifiers, both of them essentially misuse the unvetted access to localhost sockets. The Android OS allows any installed app with the INTERNET permission to open a listening socket on the loopback interface (127.0.0.1). Browsers running on the same device also access this interface without user consent or platform mediation. This allows JavaScript embedded on web pages to communicate with native Android apps and share identifiers and browsing habits, bridging ephemeral web identifiers to long-lived mobile app IDs using standard Web APIs.
This technique circumvents privacy protections like Incognito Mode, cookie deletion, and Android's permission model, with Meta Pixel and Yandex Metrica scripts silently communicating with apps across over 6 million websites combined.

Following public disclosure, Meta ceased using this method on June 3, 2025. Browser vendors like Chrome, Brave, Firefox, and DuckDuckGo have implemented or are developing mitigations, but a full resolution may require OS-level changes and stricter enforcement of platform policies to prevent further abuse.
AI

AI is More Persuasive Than People in Online Debates (nature.com) 85

Chatbots are more persuasive in online debates than people -- especially when they are able to personalize their arguments using information about their opponent. From a report: The finding, published in Nature Human Behaviour on 19 May, highlights how large language models (LLMs) could be used to influence people's opinions, for example in political campaigns or targeted advertising.

"Obviously as soon as people see that you can persuade people more with LLMs, they're going to start using them," says study co-author Francesco Salvi, a computational scientist at the Swiss Federal Technology Institute of Lausanne (EPFL). "I find it both fascinating and terrifying." Research has already shown that artificial intelligence (AI) chatbots can make people change their minds, even about conspiracy theories, but it hasn't been clear how persuasive they are in comparison to humans.
GPT-4 was 64.4% more persuasive than humans in one-to-one debates, the study found.
Programming

Stack Overflow Seeks Realignment 'To Support the Builders of the Future in an AI World' (devclass.com) 58

"The world has changed," writes Stack Overflow's blog. "Fast. Artificial intelligence is reshaping how we build, learn, and solve problems. Software development looks dramatically different than it did even a few years ago — and the pace of change is only accelerating."

And they believe their brand "at times" lost "fidelity and clarity. It's very much been always added to and not been thought of holistically. So, it's time for our brand to evolve too," they write, hoping to articulate a perspective "forged in the fires of community, powered by collaboration, shaped by AI, and driven by people."

The developer news site DevClass notes the change happens "as the number of posts to its site continues a dramatic decline thanks to AI-driven alternatives." According to a quick query on the official data explorer, the sum of questions and answers posted in April 2025 was down by over 64 percent from the same month in 2024, and plunged more than 90 percent from April 2020, when traffic was near its peak...

Although declining traffic is a sign of Stack Overflow's reduced significance in the developer community, the company's business is not equally affected so far. Stack Exchange is a business owned by investment company Prosus, and the Stack Exchange products include private versions of its site (Stack Overflow for Teams) as well as advertising and recruitment. According to the Prosus financial results, in the six months ended September 2024, Stack Overflow increased its revenue and reduced its losses. The company's search for a new direction though confirms that the fast-disappearing developer engagement with Stack Overflow poses an existential challenge to the organization.

DevClass says Stack Overflow's parent company "is casting about for new ways to provide value (and drive business) in this context..." The company has already experimented with various new services, via its Labs research department, including an AI Answer Assistant and Question Assistant, as well as a revamped jobs site in association with recruitment site Indeed, Discussions for technical debate, and extensions for GitHub Copilot, Slack, and Visual Studio Code.
From the official announcement on Stack Overflow's blog: This rebrand isn't just a fresh coat of paint. It's a realignment with our purpose: to support the builders of the future in an AI world — with clarity, speed, and humanity. It's about showing up in a way that reflects who we are today, and where we're headed tomorrow.
"We have appointed an internal steering group and we have engaged with an external expert partner in this area to help bring about the required change," notes a post in Stack Exchange's "meta" area. This isn't just about a visual update or marketing exercise — it's going to bring about a shift in how we present ourselves to the world which you will feel everywhere from the design to the copywriting, so that we can better achieve our goals and shared mission. As the emergence of AI has called into question the role of Stack Overflow and the Stack Exchange Network, one of the desired outputs of the rebrand process is to clarify our place in the world.

We've done work toward this already — our recent community AMA is an example of this — but we want to ensure that this comes across in our brand and identity as well. We want the community to be involved and have a strong voice in the process of renewing and refreshing our brand. Remember, Stack Overflow started with a public discussion about what to name it!

And another another post two months ago Stack Exchange is exploring early ideas for expanding beyond the "single lane" Q&A highway. Our goal right now is to better understand the problems, opportunities, and needs before deciding on any specific changes...

The vision is to potentially enable:

- A slower lane, with high-quality durable knowledge that takes time to create and curate, like questions and answers.

- A medium lane, for more flexible engagement, with features like Discussions or more flexible Stack Exchanges, where users can explore ideas or share opinions.

- A fast lane for quick, real-time interaction, with features like Chat that can bring the community together to discuss topics instantly.

With this in mind, we're seeking your feedback on the current state of Chat, what's most important to you, and how you see Chat fitting into the future.

In a post in Stack Exchange's "meta" area, brand design director David Longworth says the "tension mentioned between Stack Overflow and Stack Exchange" is probably the most relevant to the rebranding.

But he posted later that "There's a lot of people behind the scenes on this who care deeply about getting this right! Thank you on behalf of myself and the team."
AI

Walmart Prepares for a Future Where AI Shops for Consumers 73

Walmart is preparing for a future where AI agents shop on behalf of consumers by adapting its systems to serve both humans and autonomous bots. As major players like Visa and PayPal also invest in agentic commerce, Walmart is positioning itself as a leader by developing its own AI agents and supporting broader industry integration. PYMNTS reports: Instead of scrolling through ads or comparing product reviews, future consumers may rely on digital assistants, like OpenAI's Operator, to manage their shopping lists, from replenishing household essentials to selecting the best TV based on personal preferences, according to the report (paywalled). "It will be different," Walmart U.S. Chief Technology Officer Hari Vasudev said, per the report. "Advertising will have to evolve." The emergence of AI-generated summaries in search results has already altered the way consumers gather product information, the report said. However, autonomous shopping agents represent a bigger transformation. These bots could not only find products but also finalize purchases, including payments, without the user ever lifting a finger. [...]

Retail experts say agentic commerce will require companies to overhaul how they market and present their products online, the WSJ report said. They may need to redesign product pages and pricing strategies to cater to algorithmic buyers. The customer relationship could shift away from retailers if purchases are completed through third-party agents. [...] To prepare, Walmart is developing its own AI shopping agents, accessible through its website and app, according to the WSJ report. These bots can already handle basic tasks like reordering groceries, and they're being trained to respond to broader prompts, such as planning a themed birthday party. Walmart is working toward a future in which outside agents can seamlessly communicate with the retailer's own systems -- something Vasudev told the WSJ he expects to be governed by industry-wide protocols that are still under development. [...]

Third-party shopping bots may also act independently, crawling retailers' websites much like consumers browse stores without engaging sales associates, the WSJ report said. In those cases, the retailer has little control over how its products are evaluated. Whether consumers instruct their AI to shop specifically at Walmart or ask for the best deal available, the outcomes will increasingly be shaped by algorithms, per the report. Operator, for example, considers search ranking, sponsored content and user preferences when making recommendations. That's a far cry from how humans shop. Bots don't respond to eye-catching visuals or emotionally driven branding in the same way people do. This means retailers must optimize their content not just for people but for machine readers as well, the report said. Pricing strategies could also shift as companies may need to make rapid pricing decisions and determine whether it's worth offering AI agents exclusive discounts to keep them from choosing a competitor's lower-priced item, according to the report.
Advertising

Netflix Will Show Generative AI Ads Midway Through Streams In 2026 (arstechnica.com) 62

At its second annual Upfront 2025 event yesterday, Netflix announced that it has created interactive mid-roll ads and pause ads that incorporate generative AI. These new ad formats are expected to roll out in 2026. Ars Technica reports: "[Netflix] members pay as much attention to midroll ads as they do to the shows and movies themselves," Amy Reinhard, president of advertising at Netflix, said. Netflix started testing pause ads in July 2024, per The Verge. Speaking to advertisers, Reinhard claimed that ad subscribers spend 41 hours per month on Netflix on average. The new ad formats follow Netflix's launch of its own in-house advertising platform in the US in April. It had previously debuted the platform in Canada and plans to expand it globally by June, per The Verge.

Netflix considers its advertising business to be in its early stages, meaning customers can expect the firm's ad efforts to continue expanding at a faster rate over the coming years. The company plans to double its advertising revenue in 2025. "The foundations of our ads business are in place, and going forward, the pace of progress will be even faster," Reinhard said today.
Further reading: Netflix Says Its Ad Tier Now Has 94 Million Monthly Active Users
Television

Netflix Says Its Ad Tier Now Has 94 Million Monthly Active Users 37

Netflix said its cheaper, ad-supporter tier now has 94 million monthly active users -- an increase of more than 20 million since its last public tally in November. CNBC reports: The company and its peers have been increasingly leaning on advertising to boost the profitability of their streaming products. Netflix first introduced the ad-supported plan in November 2022. Netflix's ad-supported plan costs $7.99 per month, a steep discount from its least-expensive ad-free plan, at $17.99 per month. Netflix also said its cheapest tier reaches more 18- to 34-year-olds than any U.S. broadcast or cable network. "When you compare us to our competitors, attention starts higher and ends much higher," Netflix president of advertising Amy Reinhard said in a statement. "Even more impressive, members pay as much attention to mid-roll ads as they do to the shows and movies themselves."
AI

Figma's Big AI Update Takes On Adobe, WordPress, and Canva 10

At its Config 2025 event on Wednesday, Figma unveiled four new AI-powered tools -- Sites, Make, Buzz, and Draw, positioning itself as a full-stack design platform to rival Adobe, WordPress, and Canva. These tools enable users to build websites, generate code, create marketing content, and design vector graphics without leaving the Figma ecosystem. The Verge reports: Figma's first solution is Figma Sites, a website builder that integrates with Figma Design and allows creators to turn their projects into live, functional sites. Figma Sites provides presets for layouts, blocks, templates, and interactions that aim to make building websites less complex and time-consuming. Additional components like custom animations can also be added either using existing code or by prompting Site's AI tool to generate new interaction codes via text descriptions, such as "animate the text to fall into place like a feather." Figma Sites is rolling out in beta for users with full seat access to Figma products. Figma says that AI code generation will be available "in the coming weeks," and that a CMS that allows designers to manage site content will be launched "later this year."

Figma Make is Figma's take on AI coding tools like Google's Gemini Code Assist and Microsoft's GitHub Copilot. The prompt-to-code Figma Make tool is powered by Anthropic's Claude 3.7 model and can build working prototypes and apps based on descriptions or existing designs, such as creating a functional music player that displays a disc that spins when new tracks are played. Specific elements of working design, like text formatting and font style, can be manually edited or adjusted using additional AI prompts. Make is rolling out in beta for full seat Figma users. Figma says it's "exploring integrations with third parties and design systems" for Figma Make and may apply the tool to other apps within its design platform.

Figma Buzz is a marketing-focused design app that's rolling out in beta to all users, and makes it easier for teams to publish brand content, similar to Canva's product design platform. The tool allows Figma designers to create brand-approved templates, styles, and assets that can be used by marketers to quickly assemble emails, social media posts, advertising, and more. Figma Buzz includes generative AI tools for making and editing images using text prompts, and can source information from spreadsheets to bulk create thousands of image assets at once.

Lastly, the Figma Draw vector design app is like a simplified version of Adobe Illustrator that creatives can use to make custom visuals without leaving the Figma platform. It includes a variety of brushes, texture effects, and vector editing tools to create or adjust scalable images and logos for product design projects. Figma Draw is generally available now for full seat users as a toggle in Figma Design, with some features accessible in Sites, Slides, and Buzz. It's not quite as expansive as Adobe's wider Creative Cloud ecosystem, but Figma Draw places the two companies in direct competition for the first time since Adobe killed its own XD product design platform. It also brings some new options to the creative software industry after Adobe failed to acquire Figma for $20 billion due to pressure from competition regulators.
AI

Has Meta Figured Out How to Monetize AI - By Using It For Targeted Advertising? (yahoo.com) 44

Yahoo Finance reports that Mark Zuckerberg made bold predictions for investors on Meta's earnings call this week — about advertisers. "AI has already made us better at targeting and finding the audiences that will be interested in their products than many businesses are themselves," Zuck said, "and that keeps improving..."

"If we deliver on this vision, then over the coming years, I think that the increased productivity from AI will make advertising a meaningfully larger share of global GDP than it is today..." If investors are still searching for answers to nagging questions about how massive AI investments will pay off, Zuckerberg provided the clearest reply yet: It will strengthen our core business. In fact, it is our business... On what many believe to be the cusp of an economic downturn, Meta isn't pitching its AI developments as an add-on to its operations, but as something central to its core proposition of targeted advertising...

"While Meta's investments in GenAI have spooked certain investors who continue to question the return on these investments, we saw further signs of GenAI monetization in the firm's ad business," wrote Morningstar equity analyst Malik Ahmed Khan in a note on Thursday. In a powerful showing, coming after Alphabet's own impressive results, Meta noted that a new ads recommendation model it's testing for Reels has already boosted conversion rates by 5%. And nearly one-third of advertisers were using AI creative tools in the past quarter. For Zuckerberg, the enhancements AI offers to finding the right consumers and providing measurable results strengthen the case for boosting capacity and for a revamped model of advertising's scope.

And with the company set to invest upwards of $70 billion toward its AI opportunity this year, the bet is not all about ads, of course. Zuckerberg outlined four other areas of focus for its AI efforts: business messaging, Meta AI, AI devices, and more engaging experiences. Meta's efforts can also be viewed as an ambitious play to take on its rivals across tech's legacy and emerging platforms. As John Blackledge, senior analyst at TD Cowen, said in a note on Thursday, the AI opportunities Zuckerberg outlined are about "ultimately taking on Google search, iPhone and ChatGPT all at once."

In the pre-AI world, "Businesses used to have to generate their own ad creative and define what audiences they wanted to reach," Zuckerberg told Meta's investors this week.

And by Friday's closing, Meta's stock had jumped 12.6% over its value Wednesday morning, leading Yahoo Finance to conclude that Wall Street "appears to be buying into" Zuckerberg's vision.
Advertising

US Asks Judge To Break Up Google's Ad Tech Business (theguardian.com) 41

The U.S. government is seeking to break up Google's advertising technology business after a judge ruled the company holds an illegal monopoly over ad tools for publishers, marking the second such antitrust case following a similar request to divest Chrome. The Guardian reports: "We have a defendant who has found ways to defy" the law, US government lawyer Julia Tarver Wood told a federal court in Virginia, as she urged the judge to dismiss Google's assurance that it would change its behavior. "Leaving a recidivist monopolist" intact was not appropriate to solve the issue, she added. [...] The US government specifically alleged that Google controls the market for publishing banner ads on websites, including those of many creators and small news providers.

The hearing in a Virginia courtroom was scheduled to plan out the second phase of the trial, set for September, in which the parties will argue over how to fix the ad market to satisfy the judge's ruling. The plaintiffs argued in the first phase of the trial last year that the vast majority of websites use Google ad software products which, combined, leave no way for publishers to escape Google's advertising technology and pricing.

The district court judge Leonie Brinkema agreed with most of that reasoning, ruling last month that Google built an illegal monopoly over ad software and tools used by publishers, but partially dismissed the argument related to tools used by advertisers. The US government said it would use the trial to recommend that Google should spin off its ad publisher and exchange operations, as Google could not be trusted to change its ways. "Behavioral remedies are not sufficient because you can't prevent Google from finding a new way to dominate," Tarver Wood said.

Google countered that it would recommend that it agree to a binding commitment that it would share information with advertisers and publishers on its ad tech platforms. Google lawyer Karen Dunn did, however, acknowledge the "trust issues" raised in the case and said the company would accept monitoring to guarantee any commitments made to satisfy the judge. Google is also arguing that calls for divestment are not appropriate in this case, which Brinkema swiftly refused as an argument. The judge urged both sides to mediate, stressing that coming to a compromise solution would be cost-effective and more efficient than running a weeks-long trial.

AI

OpenAI's o3 Model Beats Master-Level Geoguessr Player 32

In a blog post yesterday, Master I-ranked human GeoGuessr player Sam Patterson said that OpenAI's o3 model outscored him in a head-to-head match, "correctly identifying all five countries and twice landing within a few hundred meters." Geoguessing is a game -- most popularly known through the platform GeoGuessr -- where players are dropped into a random location in Google Street View and must figure out where in the world they are using only visual clues from the environment. With the release of its newest AI models, o3 and o4-mini, OpenAI now does a surprisingly good job of analyzing uploaded images to determine their locations using nothing but subtle visual clues.

"Even when I embedded fake GPS coordinates in the image EXIF, the model ignored the spoof and still pinpointed the real locations, showing its performance comes from visual reasoning and on-the-fly web sleuthing -- not hidden metadata," says Patterson. From the post: I notice that it often does a lot of unnecessary and repetitive cropping, and will sometimes spend way too much time on something unimportant. A human is very good at knowing what matters, and o3 is less knowledgeable about what things it should focus on. It got distracted by advertising multiple times. However, most of what it says about things like signs and road lines appears to be accurate, or at least close enough to truth that they meaningfully add up. Given the end result of these excellent guesses, it seems to arrive at the guesses from that information.

If it's using other information to arrive at the guess, then it's not metadata from the files, but instead web search. It seems likely that in the Austria round, the web search was meaningful, since it mentioned the website named the town itself. It appeared less meaningful in the Ireland round. It was still very capable in the rounds without search.

So to put a bow on this:
- The o3 model isn't smoke and mirrors, tricking us by only using EXIF data. It's at a comparable Geoguessr skill level to Master I or better players now (at least according to my own ~20 or so rounds of testing).
- Humans still hold a big edge in decision time -- most of my guesses were 4 min.
- Spoofing EXIF data doesn't throw off the model.

Whether you view this as dystopian or as a technological marvel -- or both -- you can't claim it's a parlor trick.
Chrome

OpenAI Would Buy Google's Chrome, Exec Testifies At Trial (reuters.com) 60

At Google's antitrust trial, OpenAI's head of product revealed the company would consider buying Chrome if regulators force Alphabet to sell it, arguing such a move could help improve ChatGPT's search capabilities. Reuters reports: ChatGPT head of product Nick Turley made the statement while testifying at trial in Washington where U.S. Department of Justice seeks to require Google to undertake far-reaching measures restore competition in online search. The judge overseeing the trial found last year that Google has a monopoly in online search and related advertising. Google has not offered Chrome for sale. The company plans to appeal the ruling that it holds a monopoly.

Turley wrote last year that ChatGPT was leading in the consumer chatbot market and did not see Google as its biggest competitor, according to an internal OpenAI document Google's lawyer showed at trial. He testified that the document was meant to inspire OpenAI employees and that the company would still benefit from distribution partnerships. Turley, a witness for the government, testified earlier in the day that Google shot down a bid by OpenAI to use its search technology within ChatGPT. OpenAI had reached out to Google after experiencing issues with its own search provider, Turley said, without naming the provider. ChatGPT uses technology from Microsoft's search engine, Bing. "We believe having multiple partners, and in particular Google's API, would enable us to provide a better product to users," OpenAI told Google, according to an email shown at trial.

OpenAI first reached out in July, and Google declined the request in August, saying it would involve too many competitors, according to the email. "We have no partnership with Google today," Turley said. The DOJ's proposal to make Google share search data with competitors as one means of restoring competition would help accelerate efforts to improve ChatGPT, Turley said. Search is a critical part of ChatGPT to provide answers to user queries that are up to date and factual, Turley said. ChatGPT is years away from its goal of being able to use its own search technology to answer 80% of queries, he added.

Apple

Apple Removes 'Available Now' Claim from Intelligence Page Following NAD Review (theverge.com) 21

Apple has quietly removed the "available now" designation from its Apple Intelligence marketing page following a National Advertising Division review. The change came after the NAD recommended Apple "discontinue or modify" the claim, which "reasonably conveyed the message" that all promoted AI features were immediately available with iPhone 16 devices.

The NAD, part of the Better Business Bureau, determined Apple's footnote explaining feature availability was "neither sufficiently clear and conspicuous nor close to the triggering claims."

Further reading:
Apple Delays 'More Personalized Siri' Apple Intelligence Features;
'Something Is Rotten in the State of Cupertino';
Apple Shakes Up AI Executive Ranks in Bid to Turn Around Siri.

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