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How and why a 1,500-year-old game has conquered the internet. From a report: Two years ago, the world chess championship match drew about 10 million online viewers, while this year's competition between Magnus Carlsen and Fabio Caruana, currently underway in London, is expected to draw more attention yet. Worldwide, chess claims about 600 million fans, which makes it one of the most popular games or sports.

It is noteworthy that China, one of the two most important countries in the world, has decided to invest heavily in chess. This year Chinese teams won both the men's and women's divisions at the Chess Olympiad, a first. That would not have happened without the active support of the Chinese Communist Party. The U.S. is stepping up too, with the aid of chess patron Rex Sinquefield. In recent times America has placed three players in the world's top 10, including Caruana, currently No. 2.

It turns out that chess is oddly well-suited for a high-tech world. Chess does not make for gripping television, but the option of live viewing online, supplemented by computer analysis or personal commentary, has driven a renaissance of the game. For one thing, computer evaluations have made watching more intelligible. Even if you barely understand chess, you can quickly get a sense of the state of play with the frequently changing numerical evaluations ("+ 2.00," for instance, means white has a decisive advantage, whereas "0.00" signals an even position). You also can see, with each move, whether the player will choose what the computer finds best.

China's plan to judge each of its 1.3 billion people based on their social behavior is moving a step closer to reality, with Beijing set to adopt a lifelong points program by 2021 that assigns personalized ratings for each resident. From a report: The capital city will pool data from several departments to reward and punish some 22 million citizens based on their actions and reputations by the end of 2020, according to a plan posted on the Beijing municipal government's website this week. Those with better so-called social credit will get "green channel" benefits while those who violate laws will find life more difficult. The Beijing project will improve blacklist systems so that those deemed untrustworthy will be "unable to move even a single step," according to the government's plan. Xinhua reported on the proposal Tuesday, while the report posted on the municipal government's website is dated July 18.

Foxconn, Apple's biggest assembler of iPhones, is planning to cut $2.9 billion from expenses in 2019 as it faces "a very difficult and competitive year." According to Bloomberg, citing an internal company memo, "The iPhone business will need to reduce expenses by [about $900 million] next year and the company plans to eliminate about 10 percent of non-technical staff." For reference, Foxconn's spending in the past 12 months is about $6.7 billion. From the report: Foxconn assembles everything from iPhones and laptop computers to Sony PlayStations at factories in China and around the world. Foxconn has been hit by a slowing smartphone market, while trade tensions with the U.S. add to global uncertainty. The company will conduct an in-depth review of managers with an annual compensation of more than $150,000, according to the memo. Other cuts include a planned [$433 million] reduction in expenses at Foxconn Industrial Internet Co., its Shanghai-listed offshoot. "The review being carried out by our team this year is no different than similar exercises carried out in past years to ensure that we enter into each new year with teams and budgets that are aligned with the current and anticipated needs of our customers, our global operations and the market and economic challenges of the next year or two," Foxconn said in a statement to Bloomberg.

Reader pacopico writes: Humans have been spotting UFO-like objects for hundreds of years. But, in the late 1920s, an obscure engineer/artist named Alexander Weygers actually designed a flying saucer and later patented the craft. Bloomberg Businessweek spent two years reporting on the strange tale of Weygers, uncovering a Da Vinci type figure who lived on the outskirts of Silicon Valley in a house he built from recycled materials. Weygers was an engineer, sculptor, photographer, wood carver, tax evader and generally weird dude who lived off the land for decades. He became convinced the military stole his flying saucer design and built the vehicles, and there's some evidence he might be right. Weygers was largely forgotten until an art collector became obsessed with his story and found out everything there was to know about the guy. Overall, he's a symbol of a different, purer time in Silicon Valley.

SpaceX won permission to deploy more than 7,000 satellites, far more than all operating spacecraft currently aloft, from U.S. regulators who also moved to reduce a growing risk from space debris as skies grow more crowded. From a report: Space Exploration Technologies has two test satellites aloft, and it earlier won permission for a separate set of 4,425 satellites -- which like the 7,518 satellites authorized Thursday are designed to provide broadband communications. It has said it plans to begin launches next year. Space companies riding innovations that include smaller and cheaper satellites -- with some just 4 inches long and weighing only 3 pounds -- are planning fleets that will fly fast and low, offering communications now commonly handled by larger, more expensive satellites. Right now there are fewer than 2,000 operating satellites, and the planned additional space traffic demands vigilance, Federal Communications Commission Chairman Ajit Pai said before the agency voted Thursday on a variety of space-related matters including SpaceX's application, debris rules, and other space matters.

YouTube is about to crown a new king. T-Series, one of India's largest record labels, will become the most-subscribed channel on the world's most popular video site in the next couple weeks. At the beginning of the year, the company had 30 million fans, fewer than half of the following for No. 1 PewDiePie, the Swedish video-game geek and jokester whose real name is Felix Kjellberg. From a report: The company's ascent has shocked the tight-knit community of online personalities, prompting some to rally behind PewDiePie and delay T-Series' ascent. While claiming the most subscribers on YouTube is largely a symbolic achievement, and the company already has the most monthly views, the end of PewDiePie's five-year reign is a watershed moment that reflects important changes as internet use gets more global.

More than half of the 10 most popular channels on YouTube in terms of monthly views are from outside the U.S., and many of them belong to professional media companies. YouTube's previous champions have been young, male amateurs like the video blogger Ray William Johnson and comedy duo Smosh. But after years as a mostly Western site for pranks and cat clips, the Google-owned company has lured most of the world's largest media giants to the site, blurring the line between professional and amateur. Further reading: Who Rules YouTube? Swift? Bieber? Nope. It's T-Series, a Record Label in India.

Alphabet's self-driving car company Waymo is planning to launch the world's first commercial driverless car service in early December. According to Bloomberg, citing a person familiar with the plans, the service "will operate under a new brand and compete directly with Uber and Lyft." From the report: Waymo is keeping the new name a closely guarded secret until the formal announcement. It's a big milestone for self-driving cars, but it won't exactly be a "flip-the-switch" moment. Waymo isn't planning a splashy media event, and the service won't be appearing in an app store anytime soon. Instead, things will start small -- perhaps dozens or hundreds of authorized riders in the suburbs around Phoenix, covering about 100 square miles.

The first wave of customers will likely draw from Waymo's Early Rider Program -- a test group of 400 volunteer families who have been riding Waymos for more than a year. The customers who move to the new service will be released from their non-disclosure agreements, which means they'll be free to talk about it, snap selfies, and take friends or even members of the media along for rides. New customers in the Phoenix area will be gradually phased in as Waymo adds more vehicles to its fleet to ensure a balance of supply and demand. The report notes that some backup drivers will be placed in the cars when the service launches, and the cars themselves will be heavily modified Chrysler Pacifica minivans.

Netflix says it plans to begin testing lower-priced subscription in some markets in a bid to see if it will help the company boost the number of subscribers, CEO Reed Hastings told Bloomberg. The company has not identified the markets where it will be testing the lower-priced subscription, and has not clarified how soon it intends to conduct these tests. The company will likely consider Asian markets where it is having a tough time gaining the market share against local services that are much aggressively priced.

An anonymous reader quotes a report from Bloomberg: Amazon.com Inc. has taken another step toward eliminating software from Oracle Corp. that has long helped the e-commerce giant run its retail business. An executive with Amazon's cloud-computing unit hit back at Oracle Executive Chairman Larry Ellison, who ridiculed the internet giant as recently as last month for relying on Oracle databases to track transactions and store information, even though Amazon sells competing software, including Redshift, Aurora and DynamoDB. Amazon's effort to end its use of Oracle's products has made new progress, Andy Jassy, the chief executive officer of Amazon Web Services, tweeted Friday. "In latest episode of 'uh huh, keep talkin' Larry,' Amazon's Consumer business turned off its Oracle data warehouse Nov. 1 and moved to Redshift," Jassy wrote. By the end of 2018, Amazon will stop using 88 percent of its Oracle databases, including 97 percent of its mission-critical databases, he added.

According to Bloomberg, the Bill & Melinda Gates Foundation "spent $200 million over seven years funding sanitation research, showcased some 20 novel toilet and sludge-processing designs that eliminate harmful pathogens and convert bodily waste into clean water and fertilizer." Gates told the Reinvented Toilet Expo in Beijing on Tuesday that these technologies at the event "are the most significant advances in sanitation in nearly 200 years." From the report: Holding a beaker of human excreta that, Gates said, contained as many as 200 trillion rotavirus cells, 20 billion Shigella bacteria, and 100,000 parasitic worm eggs, the Microsoft Corp. co-founder explained to a 400-strong crowd that new approaches for sterilizing human waste may help end almost 500,000 infant deaths and save $233 billion annually in costs linked to diarrhea, cholera and other diseases caused by poor water, sanitation and hygiene. One approach from the California Institute of Technology that Gates said he finds "super interesting" integrates an electrochemical reactor to break down water and human waste into fertilizer and hydrogen, which can be stored in hydrogen fuel cells as energy.

The reinvented toilet market, which has attracted companies including Japan's LIXIL Group, could generate $6 billion a year worldwide by 2030, according to Gates. The initial demand for the reinvented toilet will be in places like schools, apartment buildings, and community bathroom facilities. As adoption of these multi-unit toilets increases, and costs decline, a new category of reinvented household toilets will become available, the Gates Foundation said.

An anonymous reader quotes a report from Bloomberg: French Finance Minister Bruno Le Maire's efforts to rally his European Union colleagues around a new tax on tech giants fell short, as countries skeptical of the plan doubled down on their opposition, and others, including Italy, said they'll push ahead with their own plans. Ministers from Denmark, Ireland and Sweden said they couldn't support the tax in its current form, casting doubt on the proposal's future, since unanimity is required to pass taxes in the EU. The plan on the table would impose a 3 percent levy on the European sales of the likes of Amazon and Facebook. A number of countries are already imposing taxes of their own, increasing the risk of fragmentation in the single market. Finance Minister Giovanni Tria said an Italian tax will kick in next year if there's no broader agreement by then. Spain and the U.K. have already announced their own levies.

An anonymous reader quotes a report from Bloomberg: For years, analysts and journalists watching Apple have talked up the growing importance of services, as opposed to hardware sales, to the company's top line. But it's only now that Apple's business model truly appears to be shifting toward collecting rent from the company's ecosystem and increasingly relying on gadget sales to perpetuate this rent rather than drive growth. Apple's decision to stop reporting iPhone unit sales underscores the shift. Services have been steadily growing in importance for Apple since 2016, while the share of revenue provided by the flagship gadget, the iPhone, has gone up and down depending on the popularity of different models.

There's a lot of potential for Apple to squeeze a higher rent directly out of its captive user base. Goldman Sachs estimates that only 10 percent of Apple's user base pay for iCloud Storage; in terms of price and service quality, iCloud has been a poor competitor to services provided by Google and some smaller companies such as Dropbox, but that only means Apple can increase revenue from it exponentially if it bothered to compete more aggressively, as it does with another key service, Apple Music. Even that streaming service has relatively low penetration, though, with only about 35 million users last year. Goldman Sachs predicts that number will grow to 83 million by 2020. Goldman's proposal for Apple is to create a services bundle similar to Amazon Prime; for $30 a month or so, subscribers would get access to music, video, 200 GB of storage and phone repair. The investment bank calculates that with just 50 million subscribers, such a bundle could add $18 billion in services revenue in 2019. "Rent extraction from a user base that finds it hard to go away may sound a bit like extortion," Leonid Bershidsky writes in closing. "But it's more honest and upfront than extracting data from users in ways they often don't understand and then making money off the data, as Facebook does. That honesty is in itself a competitive advantage for Apple as it gradually reimagines itself as more of a services company."

The challenge, Bershidsky writes, "is to grow the services offering fast enough to make up for potential iPhone revenue losses; gadget prices cannot keep going up forever without hurting the top line, and in the end, a phone is just a phone. We only need it to gain access to all the nice digital stuff out there."

People are still eating restaurant food -- they're just not doing it at restaurants as much. From a report: Delivery apps from DoorDash, Postmates, GrubHub and UberEats have made ordering in easier, and have changed the way food chains think about their business. The number of food delivery app downloads is up 380 percent compared with three years ago, according to market-data firm App Annie, and research firm Cowen and Co. predicts that U.S. restaurant delivery sales will rise an average of 12 percent a year to $76 billion in the next four years. At Firehouse, revenue has increased 7 percent this year, mainly from orders placed online and through delivery apps, Fox said. More than half of his sales are for food eaten elsewhere.

[...] Some new restaurant owners are skipping tables and chairs altogether and just leasing kitchen space to prepare food for couriers. Those are called cloud kitchens or virtual restaurants because they have no dining rooms or wait staff and sell their meals through the internet and mobile apps like DoorDash or UberEats. Mark Chase, the founder of Restaurant Real Estate Advisors, a consulting group that helps restaurant entrepreneurs find space and negotiate leases, said that the majority of his clients are interested in the kitchen-only business model. "There is a general scaling down on seating space and scaling up on kitchen space, as people just want to eat at home, on the couch," Chase said.

"Red Dead Redemption 2" broke records in its first three days on sale, pulling in more than $725 million in worldwide retail sales and achieving the biggest opening weekend in the history of entertainment, developer Rockstar Games announced. Here's a story from Bloomberg Businessweek that goes behind the scenes: In a compensation deal unique to the video-gaming industry, Sam and Dan Houser, the brothers responsible for Grand Theft Auto, will get the bulk of an expected $538 million in royalties Take-Two Interactive Software will pay to all employees for this year, according to an analyst. That's thanks in large part to their latest title, Red Dead Redemption II, due Friday. The British-born brothers and a few key insiders share half the profits of Rockstar Games, the Take-Two subsidiary that makes both titles, according to a lawsuit filed by a former employee. Last year, Take-Two distributed $383 million in what it called internal royalties. More than 2,000 Rockstar employees receive bonuses, a company spokesman said. Take-Two said its compensation programs allow employees to join in the success of software they help develop. The company declined to say how much of it went to the Housers. Gerrick Johnson of BMO Capital Markets estimated the brothers received the bulk.

"As long as Grand Theft Auto is chugging along, no one seems to care," Johnson said. The Housers' haul shows just how far video games have come since the days of Pong and Space Invaders. The industry is expected to bring in $138 billion this year, according to market researcher Newzoo. Red Dead II will sell at least 15 million copies by the end of the year, analysts said, at a retail price starting at $60 for the base package.

Last Friday in federal court, Qualcomm lawyer Evan Chesler said Apple is $7 billion dollars behind in royalties. "They're trying to destroy our business," he said. "The house is on fire and there is $7 billion of property damage right now." Bloomberg reports: Qualcomm wants as many as 56 patent-related claims and counterclaims cut from a lawsuit with Apple and its Asian manufacturers, arguing that these are just a sideshow to the broader licensing dispute between the companies. Apple, through its manufacturers, halted royalty payments to Qualcomm last year and the tech giants' showdown has escalated into some 100 legal proceedings around the world. Apple argues that Qualcomm is using its intellectual property to bully customers into paying excessive royalties even as it tries to duck scrutiny over whether its patents are valid. "You can't just let Qualcomm walk away from this," Apple's lawyer, Ruffin Cordell, told the judge at Friday's hearing.

According to a report from Bloomberg, citing people familiar with the matter, Snap CEO Evan Spiegel officially made Kristen O'Hara, former longtime WarnerMedia/Time Warner exec, the chief business officer of Snap, but changed his mind two days later. Spiegel decided to hire Jeremi Gorman, who oversaw ad sales at Amazon, instead. "The switch was jarring for Snap's sales division, as O'Hara was well-liked," Bloomberg reports. "Now she's gone." From the report: In a statement to employees Monday, O'Hara told colleagues she is leaving due to changes in team structure. Even if Gorman works well in the role, the incident has eroded trust in Spiegel's decision-making as he is working to improve his leadership skills, and as Snap is depending on new managers to help boost the company's performance. Snap confirmed O'Hara's departure and declined to comment on the circumstances. In an email to the business solutions team on Monday, provided by Snap, Spiegel praised her leadership. Spiegel wrote: "In her time here, Kristen had an immediate and positive impact on the company. She had a deep understanding of our business from the outset and forged strong client relationships that we will continue to build upon. I will miss the leadership and enthusiasm she brought to the organization and wish her only continued success. Jeremi joins us with proven expertise and talent that will make our platform even better for our partners, and I am excited to have her on our team."

Bloomberg highlights all the big announcements expected to be made next week at Apple's October hardware event, such as an iPad Pro with a USB-C port instead of a Lightning port, a MacBook Air successor, and a new Mac Mini. From the report: The update to the iPad Pro will be the most significant in the product's history. The device was originally launched in 2015 in part as a counter-measure to Microsoft's Surface Pro, which gained a following with business users seeking large tablets with support for attachable keyboards and styluses. The iPad Pro models, which have larger screens, better cameras, and faster processors, are more expensive, which has sustained revenue growth. [Some of the new features, according to people familiar with the plans, include a nearly edge-to-edge display with slimmer bezels, a USB-C connector, Face ID, Animojis, a faster processor (variant of the A12 Bionic chip), a custom Apple graphics chip, and an updated Apple Pencil.]

For the Mac, Apple is planning its first wide-ranging upgrades since June 2017. The MacBook Air and Mac mini, a small desktop machine without a screen, have gone several years without notable changes. This, combined with interest in larger smartphones and competing PCs, led Apple to report the fewest Mac sales since 2010 in its fiscal third quarter. [Apple is reportedly planning a new entry-level laptop to replace the aging MacBook Air. It's expected to have a higher-resolution 13-inch screen, as well as slimmer bezels around the display. The Mac mini will have new processors and features for professional users. Apple's also working on refreshed iMacs, iMac Pros, and 12-inch MacBooks with faster processors, and at least some of these updates could be ready for the October launch.] The event's theme is "making," and it will take place in New York City on Tuesday at 10:00am EST.

President Donald Trump has accused Twitter of targeting his followers for removal from the social media platform, amid complaints by conservatives that social media companies have been discriminating against right-wing voices. From a report: "Twitter has removed many people from my account and, more importantly, they have seemingly done something that makes it much harder to join -- they have stifled growth to a point where it is obvious to all," Trump said in a tweet Friday. "A few weeks ago it was a Rocket Ship, now it is a Blimp! Total Bias?" Trump and some other Republicans have complained that Facebook, Alphabet's Google and Twitter have censored or suppressed conservative voices. Democrats have called that a diversion from concern over Russia's use of social-media platforms to influence the 2016 presidential election and over the proliferation of offensive content. In his opening remarks during a meeting with state attorneys general in September, Attorney General Jeff Sessions raised concerns that social media companies have a political agenda and have the power to manipulate public opinion, according to Maryland Attorney General Brian Frosh.

A portrait created by artificial intelligence fetched $432,500 at Christie's in New York on Thursday, the first time a computer-generated artwork was offered by a major auction house. Bloomberg reports: The print on canvas, titled "Edmond de Belamy, from La Famille de Belamy," depicts a blurry and unfinished image of a man. Displayed in a gilded wooden frame, it was estimated to fetch $7,000 to $10,000 and offered as the final lot at Christie's auction of prints and multiples. The work was the brainchild of Obvious Art, a Paris-based collective, with help from an algorithm known as GAN (Generative Adversarial Network).

"We fed the system with a data set of 15,000 portraits painted between the 14th century to the 20th," collective member Hugo Caselles-Dupre told Christie's. The piece sparked a bidding war among five parties that lasted about seven minutes, with an anonymous phone buyer prevailing, said Christie's spokeswoman Jennifer Cuminale.

Xiaomi really wants to shed its down-market image. China's No. 2 smartphone maker is counting on its most expensive device yet to face off against Huawei and Apple at home while carving out a bigger footprint in Europe. From a report: The Chinese smartphone maker on Thursday unveiled the MIX 3, the fourth generation of a series introduced in 2016. Xiaomi's latest effort to acquire a premium gloss features a bezel-less 6.4-inch screen, Qualcomm processors and slick ceramic body. It now sports front-facing cameras on a sliding structure nestled behind the screen, doing away with the notch popularized by the iPhone. The device will go on sale from November starting at 3,299 yuan ($475) and going all the way up to 4,999 yuan for a "Forbidden City" special edition. It marks Chairman Lei Jun's effort to make greater headway into a more profitable premium market dominated by Apple, Samsung and -- to an increasing extent -- Chinese rival Huawei. That's where customers have deeper pockets to pay for services such as music and games that Xiaomi deems the future of its business. Xiaomi claims that its MIX 3 handset is the first commercial handset that is 5G ready (though the variant with 5G capabilities will go on sale in Europe only in the first quarter of next year.) Other specs of the handset includes: Processor: Qualcomm Snapdragon 845; Screen: 6.39-inch FHD+ AMOLED (1080Ã--2340, 19.5:9 aspect ratio); RAM: 6/8/10GB; Rear camera: 12-megapixel, f/1.8 + 12-megapixel, f/2.4; Front camera: 24-megapixel, f/2.2 + 2-megapixel; Battery: 3,200 mAh; Internal memory: 128/256GB.

China's regulators have ended the issuance of game licenses through a stopgap approval process, Bloomberg reported Wednesday, citing people familiar with the matter. The move would close the last known official path for making money from new titles in the world's biggest gaming market. From the report: Licenses are no longer being granted through a process known as the "green channel," used for testing both domestic and foreign games, said the people, who asked not to be identified because the matter is private. The approval mechanism had been in place since at least August, following the government's decision earlier this year to restructure how it reviews video games for violence, gambling and sensitive topics. The new restrictions in the $38 billion market threaten the fortunes of game companies such as Tencent Holdings and NetEase and add to the uncertainty about the Communist Party's long-term plans for regulating the industry. While it's unclear why Beijing has shut that window, the government has stepped up its oversight of an industry it sees fomenting addiction, myopia and other ills among the country's youth. Some analysts had anticipated that the broader freeze would end by September. They had seen the green channel as a temporary solution to carry the industry until then.

If it seems as though the app you deleted last week is suddenly popping up everywhere, it may not be mere coincidence. From a report: Companies that cater to app makers have found ways to game both iOS and Android, enabling them to figure out which users have uninstalled a given piece of software lately -- and making it easy to pelt the departed with ads aimed at winning them back. Adjust, AppsFlyer, MoEngage, Localytics, and CleverTap are among the companies that offer uninstall trackers, usually as part of a broader set of developer tools. Their customers include T-Mobile US, Spotify Technology, and Yelp. Critics say they're a fresh reason to reassess online privacy rights and limit what companies can do with user data. "Most tech companies are not giving people nuanced privacy choices, if they give them choices at all," says Jeremy Gillula, tech policy director at the Electronic Frontier Foundation, a privacy advocate.

Some providers say these tracking tools are meant to measure user reaction to app updates and other changes. Jude McColgan, chief executive officer of Boston's Localytics, says he hasn't seen clients use the technology to target former users with ads. Ehren Maedge, vice president for marketing and sales at MoEngage Inc. in San Francisco, says it's up to the app makers not to do so. "The dialogue is between our customers and their end users," he says. "If they violate users' trust, it's not going to go well for them." Adjust, AppsFlyer, and CleverTap didn't respond to requests for comment, nor did T-Mobile, Spotify, or Yelp.

Uninstall tracking exploits a core element of Apple's and Google's mobile operating systems: push notifications. Developers have always been able to use so-called silent push notifications to ping installed apps at regular intervals without alerting the user -- to refresh an inbox or social media feed while the app is running in the background, for example. But if the app doesn't ping the developer back, the app is logged as uninstalled, and the uninstall tracking tools add those changes to the file associated with the given mobile device's unique advertising ID, details that make it easy to identify just who's holding the phone and advertise the app to them wherever they go.

An anonymous reader quotes a report from Bloomberg: Although the century-old technology has disappeared from most people's daily view, magnetic tape lives on as the preferred medium for safely archiving critical cloud data in case, say, a software bug deletes thousands of Gmail messages, or a natural disaster wipes out some hard drives. The world's electronic financial, health, and scientific records, collected on state-of-the-art cloud servers belonging to Amazon.com, Microsoft, Google, and others, are also typically recorded on tape around the same time they are created. Usually the companies keep one copy of each tape on-site, in a massive vault, and send a second copy to somebody like Iron Mountain. Unfortunately for the big tech companies, the number of tape manufacturers has shrunk over the past three years from six to just two -- Sony and Fujifilm -- and each seems to think that's still one too many.

The Japanese companies have said the tape business is a mere rounding error as far as they're concerned, but each has spent millions of dollars arguing before the U.S. International Trade Commission to try to ban the other from importing tapes to America. [...] The tech industry worries that if Sony or Fujifilm knocks the other out of the U.S., the winner will hike prices, meaning higher costs for the big cloud providers; for old-line storage makers, including IBM, HPE, and Quantum; and, ultimately, for all those companies' customers. [...] Although Sony and Fujifilm have each assured the trade commission that they could fill the gap if their rival's products were shut out of the U.S., the need for storage continues to grow well beyond old conceptions. Construction is slated to begin as soon as next year on the Square Kilometer Array, a radio telescope with thousands of antennas in South Africa and Australia meant to detect signals emitted more than 13 billion years ago. It's been estimated the project could generate an exabyte (1 billion gigabytes) of raw data every day, the equivalent of 300 times the material in the U.S. Library of Congress and a huge storage headache all by itself.

An anonymous reader shares a report: Amazon cracked down on fake reviews two years ago by prohibiting shoppers from getting free products directly from merchants in exchange for writing reviews. It was a major turning point for the world's largest online retailer, which had previously seen "incentivized reviews" as a key way for consumers to discover new products. Amazon changed course because it realized some merchants were using such reviews to game its search algorithm, undermining faith in the customer feedback that helps drive e-commerce.

Amazon instead used its "Vine" program, in which Amazon serves as a middleman between prolific Amazon reviewers and vendors eager for exposure. Amazon would still allow freebies in exchange for feedback so long as there was no direct contact between its retail partners and reviewers, theoretically lessening the chance of quid-pro-quo. Amazon would select shoppers eligible for the program, and Amazon vendors would pay a fee and provide free products to participate. But there was an important group excluded from the Vine program: independent merchants who supply about half the goods sold on the site.

Now those excluded merchants and review watchdogs are alleging Amazon is guilty of the review manipulation the company said it was trying to prevent. Amazon uses Vine extensively to promote a fast-growing assortment of its own private-label products, distributing free samples to quickly accumulate the reviews needed to rise in search results and boost shopper faith in making a purchase. It gives Amazon a big advantage when introducing its own brands over third-party merchants who are more vulnerable to Amazon's private-label competition than prominent brands already in stores.

An anonymous reader quotes a report from Bloomberg: Apple on Wednesday began allowing users in the U.S. to download a copy of all of the data that they have stored with the company from a single online portal. U.S. users will be able to download data such as all of their address book contacts, calendar appointments, music streaming preferences and details about past Apple product repairs. Previously, customers could get their data by contacting Apple directly. In May, when Apple first launched the online privacy portal, it only allowed U.S. users to either correct their data or delete their Apple accounts.

bricko shares a report from Bloomberg with the caption, "Making batteries is a mess": Beneath the hoods of millions of the clean electric cars rolling onto the world's roads in the next few years will be a dirty battery. Every major carmaker has plans for electric vehicles to cut greenhouse gas emissions, yet their manufacturers are, by and large, making lithium-ion batteries in places with some of the most polluting grids in the world. By 2021, capacity will exist to build batteries for more than 10 million cars running on 60 kilowatt-hour packs, according to data of Bloomberg NEF. Most supply will come from places like China, Thailand, Germany and Poland that rely on non-renewable sources like coal for electricity.

An electric vehicle in Germany would take more than 10 years to break even with an efficient combustion engine's emissions. "We're facing a bow wave of additional CO2 emissions," said Andreas Radics, a managing partner at Munich-based automotive consultancy Berylls Strategy Advisors, which argues that for now, drivers in Germany or Poland may still be better off with an efficient diesel engine. The findings, among the more bearish ones around, show that while electric cars are emission-free on the road, they still discharge a lot of the carbon-dioxide that conventional cars do. Just to build each car battery -- weighing upwards of 500 kilograms (1,100 pounds) in size for sport-utility vehicles -- would emit up to 74 percent more C02 than producing an efficient conventional car if it's made in a factory powered by fossil fuels in a place like Germany, according to Berylls' findings. Yet regulators haven't set out clear guidelines on acceptable carbon emissions over the life cycle of electric cars, even as the likes of China, France and the U.K. move toward outright bans of combustion engines. It all has to do with manufacturing. According to estimates of Mercedes-Benz's electric-drive system integration department, manufacturing an electric car pumps out "significantly" more climate-warming gases than a conventional car, which releases only 20 percent of its lifetime CO2 at this stage. "Just switching to renewable energy for manufacturing would slash emissions by 65 percent, according to Transport & Environment," reports Bloomberg. "In Norway, where hydro-electric energy powers practically the entire grid, the Berylls study showed electric cars generate nearly 60 percent less CO2 over their lifetime, compared with even the most efficient fuel-powered vehicles."

An anonymous reader shares a report: Somewhere in the United States, someone is getting into an Uber en route to a WeWork co-working space. Their dog is with a walker whom they hired through the app Wag. They will eat a lunch delivered by DoorDash, while participating in several chat conversations on Slack. And, for all of it, they have an unlikely benefactor to thank: the Kingdom of Saudi Arabia. Long before the dissident Saudi journalist Jamal Khashoggi vanished, the kingdom has sought influence in the West -- perhaps intended, in part, to make us forget what it is. A medieval theocracy that still beheads by sword, doubling as a modern nation with malls (including a planned mall offering indoor skiing), Saudi Arabia has been called "an ISIS that made it." Remarkably, the country has avoided pariah status in the United States thanks to our thirst for oil, Riyadh's carefully cultivated ties with Washington, its big arms purchases, and the two countries' shared interest in counterterrorism. But lately the Saudis have been growing their circle of American enablers, pouring billions into Silicon Valley technology companies.

While an earlier generation of Saudi leaders, like Prince Alwaleed bin Talal, invested billions of dollars in blue-chip companies in the United States, the kingdom's new crown prince, Mohammed bin Salman, has shifted Saudi Arabia's investment attention from Wall Street to Silicon Valley. Saudi Arabia's Public Investment Fund has become one of Silicon Valley's biggest swinging checkbooks, working mostly through a $100 billion fund raised by SoftBank (a Japanese company), which has swashbuckled its way through the technology industry, often taking multibillion-dollar stakes in promising companies. The Public Investment Fund put $45 billion into SoftBank's first Vision Fund, and Bloomberg recently reported that the Saudi fund would invest another $45 billion into SoftBank's second Vision Fund. SoftBank, with the help of that Saudi money, is now said to be the largest shareholder in Uber. It has also put significant money into a long list of start-ups that includes Wag, DoorDash, WeWork, Plenty, Cruise, Katerra, Nvidia and Slack. As the world fills up car tanks with gas and climate change worsens, Saudi Arabia reaps enormous profits -- and some of that money shows up in the bank accounts of fast-growing companies that love to talk about "making the world a better place."

Echoing sentiments of mainstream economists, Juniper Research is warning that many of the metrics in the cryptocurrency world are pointing to a market implosion. From a report: Industry bellwether Bitcoin had seen its daily transaction volumes fall from an average of around 360,000 a day in late 2017 to just 230,000 in September 2018. Meanwhile, daily transaction values were down from more than $3.7 billion to less than $670 million in the same period, Juniper said in the study, The Future of Cryptocurrency: Bitcoin & Altcoin Trends & Challenges 2018-2023. The market as a whole has contracted quickly as well. In the first quarter, cryptocurrency transactions totaled just over $1.4 trillion, compared with less than $1.7 trillion for 2017 as a whole, Juniper said. However, by the second quarter, transaction values had plummeted by 75 percent, with total market capitalization falling to just under $355 billion. "Based on activity during the first half of Q3, Juniper estimates a further 47 percent quarter-on-quarter drop in transaction values in that quarter," the researcher said in an accompanying white paper.

An anonymous reader quotes a report from Bloomberg: Amazon is sweetening the pay for some of its longtime warehouse workers after employees criticized the loss of bonuses and stock awards as part of the company's pledge to boost all wages to at least $15 an hour. The world's largest online retailer grabbed headlines last week with its minimum-pay pledge -- followed by concerns from veteran workers who feared their compensation would actually decline because the company also eliminated bonuses and stock awards. Amazon said any workers already earning $15 would get raises of $1 per hour. Now, some of those employees are learning their hourly raises will actually be $1.25 an hour. Additionally, Amazon is introducing a new cash bonus of $1,500 to $3,000 for tenure milestones at five, 10, 15 and 20 years. Workers with good attendance in the month of December will also get a $100 bonus, according to the company. "All hourly Operations and Customer Service employees will see an increase in their total compensation as a result of this announcement," Amazon said in a statement. "The significant increase in hourly cash wages effective Nov. 1 more than compensates for the phase out of incentive pay and future (stock) grants."

Andy Rubin, the creator of Android operating system, is not giving up on his Essential company. The consumer electronics startup is putting most projects aside to focus on development of a new kind of phone that will try to mimic the user and automatically respond to messages on their behalf, Bloomberg reported Wednesday, citing people familiar with the plans. From the report: The company paused development of a planned home speaker, months after canceling a different smartphone that had been in the works, said the people, who asked not to be identified because the details are private. Sales of an earlier phone were disappointing, and the company is abandoning the effort partly because the product is too similar to others on the market. Essential had considered selling itself this year after a series of setbacks.

The design of the new mobile device isn't like a standard smartphone. It would have a small screen and require users to interact mainly using voice commands, in concert with Essential's artificial-intelligence software. The idea is for the product to book appointments or respond to emails and text messages on its own, according to the people familiar with the plans. Users would also be able to make phone calls from the planned device.

The Intergovernmental Panel on Climate Change released a report on Monday saying that the world's electrical utilities need to reduce coal consumption by at least 60 percent over the next two decades through 2030 to avoid the worst effects of climate change that could occur with more than 1.5 degrees Celsius of warming. While that reduction seems out of reach, Bloomberg crunched some numbers and found that "it's possible to meet consumption-cut targets on the current path." From the report: The conventional wisdom is that this isn't possible, as rising demand from emerging economies, led by China and India, overwhelms the switch from fossil fuels in richer countries. That may underestimate the changing economics of energy generation, though. For one thing, it assumes that Asian countries will continue to build new coal-fired plants at a rapid rate, even though renewables are already the cheaper option in India and heading that way in China and Southeast Asia. For another, the falling cost and rising penetration of wind and solar is so recent that we're only just starting to see how they damage the business models of conventional generators. Thanks to the deflation of recent years, renewables already produce energy at a lower cost than thermal power plants. That causes the overall price of wholesale electricity to fall, reducing a conventional plant's revenue per megawatt-hour. When this drops below the generator's operating costs, the only away to avoid losing money is to switch off altogether. As a result, capacity factors -- the share of time when the plant is on and producing electricity -- decline as well, further undermining returns.

The shift from an always-on "baseload" demand profile to a peaks-and-troughs one like this carries its own problems. The act of ramping up and down consumes fuel and causes the physical plant to wear out faster. Absent expensive refurbishments, that could take a decade off the 40- to 50-year life of a coal plant -- and banks will get progressively less likely to fund long-term refurbs as wind and solar further damage the economics of fossil power. Researchers at the Australian National University this year modeled the effect of this sort of scenario on that country's generation mix. Assuming that the cost of renewables continues to evolve in line with current trends, they found the average retirement age of coal plants falls to 30 years from 50 years. As a result, coal-powered generation drops by about 70 percent between 2020 and 2030. "Let's assume the addition of net new generation stops in 2020; that plant life reduces to 30 years from 40 years; and that capacity factors gradually fall from the current 50 percent to 35 percent, still well above the levels of the U.K.'s coal generators in recent years," the report says in closing. "The effect of those operating changes alone reduces coal-fired electricity output in 2030 by about 40 percent relative to the higher scenario. [...] Factor in a price on carbon or other robust government intervention and the decline would be much faster."

A major U.S. telecommunications company discovered manipulated hardware from Super Micro Computer in its network and removed it in August, fresh evidence of tampering in China of critical technology components bound for the U.S., Bloomberg reported Tuesday. From the report: The security expert, Yossi Appleboum, provided documents, analysis and other evidence of the discovery following the publication of an investigative report in Bloomberg Businessweek that detailed how China's intelligence services had ordered subcontractors to plant malicious chips in Supermicro server motherboards over a two-year period ending in 2015. Appleboum previously worked in the technology unit of the Israeli Army Intelligence Corps and is now co-chief executive officer of Sepio Systems in Gaithersburg, Maryland. His firm specializes in hardware security and was hired to scan several large data centers belonging to the telecommunications company. Bloomberg is not identifying the company due to Appleboum's nondisclosure agreement with the client. Unusual communications from a Supermicro server and a subsequent physical inspection revealed an implant built into the server's Ethernet connector, a component that's used to attach network cables to the computer, Appleboum said.

An anonymous reader quotes a report from Bloomberg: Millions of Atlantic salmon could have their faces stored in digital databases to track their health and single out those posing threats to their marine surroundings. And before you ask if fish have faces, they do: A company in Norway has developed a 3D scanner that can tell salmon apart based on the distinct pattern of spots around their eyes, mouth and gills. Fish-farming giant Cermaq Group AS wants to roll out the technology at salmon pens along Norway's fjord-etched coastline, betting it can prevent the spread of epidemics like sea lice that infect hundreds of millions of farmed fish and cost the global industry upwards of $1 billion each year.

Cargill wants to apply facial recognition to aqua farms, and Cermaq, operator of over 200 salmon and trout farms in Norway, Canada and Chile, is already doing tests on the iFarm design with its Norwegian technology partner BioSort AS. It'll look a lot like existing fish farms, with networks of 160-meter (525-foot) circular nets that are typically 35 meters deep and home to up to 200,000 salmon. The difference is that iFarms would be equipped with camera scanners at the water surface. On any given day, about 40,000 salmon in each pen will rise to above water for a gulp of air, something their bladders need to regulate buoyancy. Each time a salmon does this, typically every four days, it would go through a funnel fitted with sensors that would screen its face and body so records can be kept on each fish. If the machines pick up on abnormalities like lice or skin ulcers, the infected fish can be quarantined for medical treatment.

Citing corporate values, Google has decided not to compete for the Pentagon's $10 billion cloud-computing contract. Bloomberg reports: The project, known as the Joint Enterprise Defense Infrastructure cloud, or JEDI, involves transitioning massive amounts of Defense Department data to a commercially operated cloud system. Companies are due to submit bids for the contract, which could last as long as 10 years, on October 12th. Google's announcement on Monday came just months after the company decided not to renew its contract with a Pentagon artificial intelligence program, after extensive protests from employees of the internet giant about working with the military. The company then released a set of principles designed to evaluate what kind of artificial intelligence projects it would pursue. "We are not bidding on the JEDI contract because first, we couldn't be assured that it would align with our AI Principles," a Google spokesman said in a statement. "And second, we determined that there were portions of the contract that were out of scope with our current government certifications."

The spokesman added that Google is "working to support the U.S. government with our cloud in many ways." "Had the JEDI contract been open to multiple vendors, we would have submitted a compelling solution for portions of it," they said. "Google Cloud believes that a multi-cloud approach is in the best interest of government agencies, because it allows them to choose the right cloud for the right workload."

Tesla's model 3 is now one of the five top-selling sedans in America (while sales of the Mercedes-Benz C-Class are down 28 percent through September), Bloomberg reports. Elon Musk tweeted out a link to their article on Thursday -- but it was his other tweet, a satirical criticism of the SEC, that made headlines. MarketWatch reports: Tesla shares ended 7% lower on Friday as Wall Street reacted to Musk's tweet seemingly out of nowhere late Thursday about the "Shortseller Enrichment Commission." Musk also tweeted that day that short sellers were "value destroyers" and should be illegal. Friday's losses for Tesla "produced more than half a billion in paper profit for the shorts," S3 Partners LLC, which tracks real-time short interest data, said in a note. Since news of the Musk's settlement with the SEC, shorts are up $941 million, S3 Partners said. "Clearly short positions are building in the wake of strong selling by longs, as Musk demonstrates a refusal to keep away from controversy," the note said.
The article notes that last Saturday the SEC settled charges that Musk misled investors with a tweet about taking Tesla private. "Terms of the settlement included requiring Tesla to rein in Musk's social-media communications, but it was unclear when Tesla intends to implement that.... The settlement has yet to be court-approved."

On Friday Musk was back on point, tweeting out the news that Tesla owners "can refer someone to buy a Tesla & get any image they want laser etched in glass & sent to deep space for millions of years."

An anonymous reader quotes a report from BuzzFeed News: Multiple senior Apple executives, speaking with BuzzFeed News on the condition of anonymity so that they could speak freely all denied and expressed confusion with a report earlier this week that the company's servers had been compromised by a Chinese intelligence operation. On Thursday morning, Bloomberg Businessweek published a bombshell investigation. The report -- the result of more than a year of reporting and over 100 interviews with intelligence and company sources -- alleged that Chinese spies compromised and infiltrated almost 30 U.S. companies including Apple and Amazon by embedding a tiny microchip inside company servers. Both Amazon and Apple issued uncharacteristically strong and detailed denials of Bloomberg's claims.

Reached by BuzzFeed News multiple Apple sources -- three of them very senior executives who work on the security and legal teams -- said that they are at a loss as to how to explain the allegations. These people described a massive, granular, and siloed investigation into not just the claims made in the story, but into unrelated incidents that might have inspired them. A senior security engineer directly involved in Apple's internal investigation described it as "endoscopic," noting they had never seen a chip like the one described in the story, let alone found one. "I don't know if something like this even exists," this person said, noting that Apple was not provided with a malicious chip or motherboard to examine. "We were given nothing. No hardware. No chips. No emails." Equally puzzling to Apple execs is the assertion that it was party to an FBI investigation -- Bloomberg wrote that Apple "reported the incident to the FBI." A senior Apple legal official told BuzzFeed News the company had not contacted the FBI, nor had it been contacted by the FBI, the CIA, the NSA or any government agency in regards to the incidents described in the Bloomberg report. This person's purview and responsibilities are of such a high level that it's unlikely they would not have been aware of government outreach.

Honda has reportedly walked away from a deal with Alphabet's Waymo to jointly develop autonomous vehicles earlier this year. Instead, Honda bought into Cruise, the self-driving car startup whose majority shareholder is General Motors. Bloomberg reports on the possible reasons why the deal fell through: For one, Waymo wasn't willing to share the substantial technology it had already developed to run autonomous vehicles, and was seeking to cut a deal that would focus on Honda providing the cars, according to two people with knowledge of the matter, who asked not to be named because the talks were private. Essentially, Waymo wanted to be the brains and have Honda be the brawn in the relationship.

One person familiar with the talks said that Waymo wanted Honda to supply electric vehicles -- an area where the automaker is just beginning to establish itself. All of Waymo's existing partnerships supply EVs or plug-in hybrids because its autonomous driving system needs more power than the puny 12-volt batteries in conventional cars. After starting talks with Honda in late 2016, Honda told Waymo it was working on an EV for the partnership that would compete with Tesla Inc.'s Model 3. But by December of last year, Waymo was concerned about progress toward that goal and Honda went shopping for battery packs to power the vehicle, the person said.

TechCrunch's security editor, Zack Whittaker, analyzes Bloomberg's recent report that China infiltrated Apple, Amazon and others via a tiny microchip inserted into servers at the data centers associated with these companies. With Apple and Amazon refuting Bloomberg's claims, Whittaker talks about the "murky world of national security reporting" and the difficulties of reporting stories of this magnitude with anonymous sources. An anonymous reader shares an excerpt from his report: Today's bombshell Bloomberg story has the internet split: either the story is right, and reporters have uncovered one of the largest and jarring breaches of the U.S. tech industry by a foreign adversary or it's not, and a lot of people screwed up. Welcome to the murky world of national security reporting. I've covered cybersecurity and national security for about five years, most recently at CBS, where I reported exclusively on several stories -- including the U.S. government's covert efforts to force tech companies to hand over their source code in an effort to find vulnerabilities and conduct surveillance. And last year I revealed that the National Security Agency had its fifth data breach in as many years, and classified documents showed that a government data collection program was far wider than first thought and was collecting data on U.S. citizens. Even with this story, my gut is mixed.

Naturally, people are skeptical of this "spy chip" story. On one side you have Bloomberg's decades-long stellar reputation and reporting acumen, a thoroughly researched story citing more than a dozen sources -- some inside the government and out -- and presenting enough evidence to present a convincing case. On the other, the sources are anonymous -- likely because the information they shared wasn't theirs to share or it was classified, putting sources in risk of legal jeopardy. But that makes accountability difficult. No reporter wants to say "a source familiar with the matter" because it weakens the story. It's the reason reporters will tag names to spokespeople or officials so that it holds the powers accountable for their words. And, the denials from the companies themselves -- though transparently published in full by Bloomberg -- are not bulletproof in outright rejection of the story's claims. These statements go through legal counsel and are subject to government regulation. These statements become a counterbalance -- turning the story from an evidence-based report into a "he said, she said" situation. That puts the onus on the reader to judge Bloomberg's reporting. Reporters can publish the truth all they want, but ultimately it's down to the reader to believe it or not. Whittaker ends by saying "Bloomberg's delivery could have been better," and that they "missed an opportunity to be more open and transparent in how it came to the conclusions that it did."

"Journalism isn't proprietary," Whittaker writes. "It should be open to as many people as possible. If you're not transparent in how you report things, you lose readers' trust. That's where the story rests on shaky ground. Admittedly, as detailed and as well-sourced as the story is, you -- and I -- have to put a lot of trust and faith in Bloomberg and its reporters."

Bloomberg BusinessWeek published a story on Thursday which claimed that data center equipments run by Amazon Web Services and Apple were subject to surveillance from the Chinese government via a tiny microchip inserted during the equipment manufacturing process. Both Amazon and Apple have vehemently refuted Bloomberg's reporting. Bloomberg's reporters, who have spent more than a year on the story and have cited 17 sources for the claims they make in it, have doubled down. In a new story, the news outlet reports that Supermicro was the target of at least two additional forms of attack. This report claims that Facebook was aware of these attacks, too, which has confirmed it. From the story: The first of the other two prongs involved a Supermicro online portal that customers used to get critical software updates, and that was breached by China-based attackers in 2015. The problem, which was never made public, was identified after at least two Supermicro customers downloaded firmware -- software installed in hardware components -- meant to update their motherboards' network cards, key components that control communications between servers running in a data center. The code had been altered, allowing the attackers to secretly take over a server's communications, according to samples passed around at the time among a small group of Supermicro customers. One of these customers was Facebook.

"In 2015, we were made aware of malicious manipulation of software related to Supermicro hardware from industry partners through our threat intelligence industry sharing programs," Facebook said in an emailed statement. "While Facebook has purchased a limited number of Supermicro hardware for testing purposes confined to our labs, our investigations reveal that it has not been used in production, and we are in the process of removing them." The victims considered the faulty code a serious breach. Further reading: Bloomberg's spy chip story reveals the murky world of national security reporting.

An anonymous reader shares a report: It looks like Amazon's move to sell off its physical server business in China last year was because the unit had been compromised by a Chinese government spying program. That's according to a report from Bloomberg which details how the Chinese government infiltrated a number of U.S. companies by sneaking tiny chips onto motherboards from Supermicro. They then became part of servers deployed by the companies giving remote operatives potential access to data. It's a huge story that includes a comparatively small but important passage shedding light on Amazon's China deal last November -- the U.S. firm sold the physical server business to local partner Beijing Sinnet for 2 billion yuan, or around $300 million. That transaction initially sparked reports that AWS would exit China, but Amazon later clarified it planned to continue to operate its cloud services in China. Selling the physical server business, it said, was down to the fact that "Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services." While it is correct that China did introduce cybersecurity laws that placed restrictions on overseas firms and appeared to give the government unprecedented access to data, the Bloomberg report claims that Amazon's China-based servers were in fact offloaded because they were plagued with compromised servers.

Data center equipment run by Amazon Web Services and Apple were subject to surveillance from the Chinese government via a tiny microchip inserted during the equipment manufacturing process, Bloomberg BusinessWeek reported Thursday, citing 17 people at Apple, Amazon, and U.S. government security officials, among others. The compromised chips in question came from a server company called Supermicro that assembled machines used in the centers, the report added. The scrutiny of these chips, which were used for gathering intellectual property and trade secrets from American companies, have also been the subject of an ongoing top secret U.S. government investigation, which started in 2015, the news outlet reported. Amazon, which runs AWS, Apple, and Supermicro have disputed summaries of Bloomberg BusinessWeek's reporting.

The report states that Amazon became aware of a Supermicro's tiny microchip nested on the server motherboards of Elemental Technologies, a Portland, Oregon based company, as part of a due diligence ahead of acquiring the company in 2015. Amazon acquired Elemental as it prepared to use its technologies for what is now known as Prime Video, its video streaming service. The report adds that Amazon informed the FBI of its findings. From the report: One official says investigators found that it eventually affected almost 30 companies, including a major bank, government contractors, and the world's most valuable company, Apple. Apple was an important Supermicro customer and had planned to order more than 30,000 of its servers in two years for a new global network of data centers. Three senior insiders at Apple say that in the summer of 2015, it, too, found malicious chips on Supermicro motherboards. Apple severed ties with Supermicro the following year, for what it described as unrelated reasons. [...] [Update: Some counterpoint: According to an earlier report by The Information, security concerns were indeed a reason why Apple and Supermicro parted ways.] A U.S. official says the government's probe is still examining whether spies were planted inside Supermicro or other American companies to aid the attack. Some background on Supermicro, courtesy of Bloomberg: Today, Supermicro sells more server motherboards than almost anyone else. It also dominates the $1 billion market for boards used in special-purpose computers, from MRI machines to weapons systems. Its motherboards can be found in made-to-order server setups at banks, hedge funds, cloud computing providers, and web-hosting services, among other places. Supermicro has assembly facilities in California, the Netherlands, and Taiwan, but its motherboards -- its core product -- are nearly all manufactured by contractors in China. The company's pitch to customers hinges on unmatched customization, made possible by hundreds of full-time engineers and a catalog encompassing more than 600 designs. Further reading: Amazon Offloaded Its Chinese Server Business Because it Was Compromised, Report Says.

Data center equipment run by Amazon Web Services and Apple were subject to surveillance from the Chinese government via a tiny microchip inserted during the equipment manufacturing process, Bloomberg BusinessWeek reported Thursday, citing 17 people at Apple, Amazon, and U.S. government security officials, among others. The compromised chips in question came from a server company called Supermicro that assembled machines used in the centers, the report added. The scrutiny of these chips, which were used for gathering intellectual property and trade secrets from American companies, have also been the subject of an ongoing top secret U.S. government investigation, which started in 2015, the news outlet reported. Amazon, which runs AWS, Apple, and Supermicro have disputed summaries of Bloomberg BusinessWeek's reporting.

The report states that Amazon became aware of a Supermicro's tiny microchip nested on the server motherboards of Elemental Technologies, a Portland, Oregon based company, as part of a due diligence ahead of acquiring the company in 2015. Amazon acquired Elemental as it prepared to use its technologies for what is now known as Prime Video, its video streaming service. The report adds that Amazon informed the FBI of its findings. From the report: One official says investigators found that it eventually affected almost 30 companies, including a major bank, government contractors, and the world's most valuable company, Apple. Apple was an important Supermicro customer and had planned to order more than 30,000 of its servers in two years for a new global network of data centers. Three senior insiders at Apple say that in the summer of 2015, it, too, found malicious chips on Supermicro motherboards. Apple severed ties with Supermicro the following year, for what it described as unrelated reasons. [...] [Update: Some counterpoint: According to an earlier report by The Information, security concerns were indeed a reason why Apple and Supermicro parted ways.] A U.S. official says the government's probe is still examining whether spies were planted inside Supermicro or other American companies to aid the attack. Some background on Supermicro, courtesy of Bloomberg: Today, Supermicro sells more server motherboards than almost anyone else. It also dominates the $1 billion market for boards used in special-purpose computers, from MRI machines to weapons systems. Its motherboards can be found in made-to-order server setups at banks, hedge funds, cloud computing providers, and web-hosting services, among other places. Supermicro has assembly facilities in California, the Netherlands, and Taiwan, but its motherboards -- its core product -- are nearly all manufactured by contractors in China. The company's pitch to customers hinges on unmatched customization, made possible by hundreds of full-time engineers and a catalog encompassing more than 600 designs. Further reading: Amazon Offloaded Its Chinese Server Business Because it Was Compromised, Report Says.

Data center equipment run by Amazon Web Services and Apple were subject to surveillance from the Chinese government via a tiny microchip inserted during the equipment manufacturing process, Bloomberg BusinessWeek reported Thursday, citing 17 people at Apple, Amazon, and U.S. government security officials, among others. The compromised chips in question came from a server company called Supermicro that assembled machines used in the centers, the report added. The scrutiny of these chips, which were used for gathering intellectual property and trade secrets from American companies, have also been the subject of an ongoing top secret U.S. government investigation, which started in 2015, the news outlet reported. Amazon, which runs AWS, Apple, and Supermicro have disputed summaries of Bloomberg BusinessWeek's reporting.

The report states that Amazon became aware of a Supermicro's tiny microchip nested on the server motherboards of Elemental Technologies, a Portland, Oregon based company, as part of a due diligence ahead of acquiring the company in 2015. Amazon acquired Elemental as it prepared to use its technologies for what is now known as Prime Video, its video streaming service. The report adds that Amazon informed the FBI of its findings. From the report: One official says investigators found that it eventually affected almost 30 companies, including a major bank, government contractors, and the world's most valuable company, Apple. Apple was an important Supermicro customer and had planned to order more than 30,000 of its servers in two years for a new global network of data centers. Three senior insiders at Apple say that in the summer of 2015, it, too, found malicious chips on Supermicro motherboards. Apple severed ties with Supermicro the following year, for what it described as unrelated reasons. [...] [Update: Some counterpoint: According to an earlier report by The Information, security concerns were indeed a reason why Apple and Supermicro parted ways.] A U.S. official says the government's probe is still examining whether spies were planted inside Supermicro or other American companies to aid the attack. Some background on Supermicro, courtesy of Bloomberg: Today, Supermicro sells more server motherboards than almost anyone else. It also dominates the $1 billion market for boards used in special-purpose computers, from MRI machines to weapons systems. Its motherboards can be found in made-to-order server setups at banks, hedge funds, cloud computing providers, and web-hosting services, among other places. Supermicro has assembly facilities in California, the Netherlands, and Taiwan, but its motherboards -- its core product -- are nearly all manufactured by contractors in China. The company's pitch to customers hinges on unmatched customization, made possible by hundreds of full-time engineers and a catalog encompassing more than 600 designs. Further reading: Amazon Offloaded Its Chinese Server Business Because it Was Compromised, Report Says.

Verizon Communications is offering buyout packages to as many as 44,000 management employees as part of a cost-cutting drive, potentially eliminating more than a fourth of its workforce. From a report: The offer, which excludes executives in sales or crucial company roles, is part of a four-year, $10 billion cost-reduction program that Chairman Lowell McAdam put in place last year. A Verizon spokesman declined to say how many of the 44,000 managers are expected to take the offer and leave the company. Update: The Wall Street Journal adds: Verizon notified many information technology employees that they were being transferred to Indian outsourcing giant Infosys as part of a $700 million outsourcing agreement. The pool of employees who either received the severance offer or are affected by the Infosys deal amounts to about 30% of the 153,100 employees that Verizon had globally at the end of June. "Strategically we are going to invest more in transforming the business versus running the business," materials detailing the outsourcing agreement said. As part of that pact, Verizon is transferring about 2,500 employees in the U.S. and overseas to Infosys. Those employees aren't eligible for severance payments and won't receive their 2018 bonus if they are offered a job at Infosys and don't accept it, according to materials given to the employees.

Amazon is eliminating monthly bonuses and stock awards for warehouse workers and other hourly employees after the company pledged this week to raise pay to at least $15 an hour, Bloomberg reported Wednesday. From a report: Warehouse workers for the e-commerce giant in the U.S. were eligible in the past for monthly bonuses that could total hundreds of dollars per month as well as stock awards, said two people familiar with Amazon's pay policies. The company informed those employees Wednesday that it's eliminating both of those compensation categories to help pay for the raises, the people said. Amazon received plaudits when it announced Monday that the company would raise its minimum pay. The pay increase warded off criticism from politicians and activists, and put the company in a good position to recruit temporary workers for the important holiday shopping season.

An anonymous reader shares a report: Evidence of the battery-powered era is all around us. Electric vehicles are cruising down our freeways. Household appliances thrum with stored solar energy that was until recently a daytime-only power source. Governments from California to China and South Korea -- even Donald Trump's Washington -- have taken steps that will make battery power more ubiquitous. There's just one hitch to this battery boom: The world isn't making nearly enough. All of the new demand from North America, Europe and Asia is constrained at the moment by a market that remains heavily dependent on a few producers. Data on the global supply of batteries is hard to come by, but close observers of the industry have noticed evidence of the shortfall. "We've never seen such demand," said Yayoi Sekine, a New York-based analyst at Bloomberg NEF. "But the supply is struggling to keep up."

Oddly, however, lithium-ion battery-rack prices have continued their annual decline, even in the face of constrained supply and expectations of ever-growing demand. To get a clear sense of the near future, consider battery-powered cars: Today, there are more than 3 million electric vehicles on the road worldwide; by 2025, Volkswagen AG alone plans to build as many as 3 million electric vehicles per year. Those vehicle batteries -- in addition to storage batteries for homes, businesses and utilities -- will have to come from somewhere.

Netflix is about to let you decide how your favorite show will end, Bloomberg reported Monday. From the report: The streaming service is developing a slate of specials that will let viewers choose the next storyline in a TV episode or movie, according to people familiar with the matter. The company expects to release the first of these projects before the end of this year, said the people, who asked not to be identified because the plans are still private.

Viewers will get to choose their own storylines in one episode of the upcoming season of "Black Mirror," the Emmy-winning science-fiction anthology series. The show is famous for exploring the social implications of technology, including an episode where humans jockey to receive higher ratings from their peers. The fifth season of the show is expected to be released in December.

The foray into choose-your-own-adventure programming represents a big bet on a nascent form of entertainment known as interactive TV. As Netflix expands around the world, it's looking for new ways to lure customers. By blending elements of video games with traditional television, the company could create a formula that can be applied to any number of series.

An indie Taiwanese hacker has proclaimed he'll broadcast an attempt to wipe out Mark Zuckerberg's Facebook page this Sunday -- live. From a report: Self-professed bug bounty-hunter Chang Chi-yuan, who ferrets out software flaws in return for cash, says he'll live-stream an endeavor to delete the billionaire's account at 6 p.m. local time from his own Facebook page. He didn't get into details or respond to an online query. "Broadcasting the deletion of FB founder Zuck's account," the lanky youngster, who turns 24 this year based on past interviews, told his 26,000-plus followers on Facebook this week. "Scheduled to go live." Cyber-enthusiasts from India to the U.S. routinely expose loopholes in corporate websites and software, earning small financial rewards. It's unusual however for so-called white-hat hackers to do so in real time. Chang, a minor celebrity at home who's gone on talk shows to discuss his exploits, was reportedly sued by a local bus operator after infiltrating their systems and buying a ticket for just NT$1 (3 cents). He's published a gamut of claims -- none of which could be independently verified -- including attacks on Apple and Tesla. And his Facebook account was listed among eight "special contributors" in Line's 2016 bug-hunters' hall of fame. Update: He has backpedalled on the claim.

U.S. securities regulators have sued Elon Musk for allegedly making false statements related to his abandoned efforts to take Tesla Motors private. Bloomberg News broke the news Thursday, citing docket entry in Manhattan federal court. Last month, Musk had expressed his intentions to take Tesla private, and that he had secured the funding. Taking Tesla private, which would have helped the company avoid making short-term commitments and goals, would be the "best path forward," Musk had said at the time. Even as investors had shown agreement to Musk's move, a few days later, he announced that after further discussions, everyone believes that Tesla should remain public. Amid all of this, some argued that Musk made the "false" claim just to hurt short-sellers. From the lawsuit: This case involves a series of false and misleading statements made by Elon Musk, the Chief Executive Officer of Tesla, Inc. ("Tesla"), on August 7, 2018, regarding taking Tesla, a publicly traded company, private. Musk's statements, disseminated via Twitter, falsely indicated that, should he so choose, it was virtually certain that he could take Tesla private at a purchase price that reflected a substantial premium over Tesla stock's then-current share price, that funding for this multi-billion dollar transaction had been secured, and that the only contingency was a shareholder vote. In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source. During a press conference, Stephanie Avakian, co-director of the SEC's division of enforcement, said: A chairman and CEO of a public company has important responsibilities to shareholders. Those responsibilities include the need to be scrupulous and careful about the truth and accuracy of statements made to the investing public, whether those statements are made in traditional forms such as a press release or an earnings call or through less formal methods such as Twitter or other social media. Neither celebrity status nor reputation as a technological innovator provide an exemption from the federal securities laws. In a statement to CNBC, Musk said, "This unjustified action by the SEC leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way."

An anonymous reader quotes a report from Bloomberg: The U.S. airline grounded all domestic flights Tuesday to deal with a technology issue that affected some of its systems. About an hour later, Delta said it had restored all its systems, allowing the services to resume. While the carrier said there were no disruptions or safety issues with any flight, the systems failure was the third in as many years that forced Delta to shut its operations. In January last year, a 2 1/2-hour computer breakdown grounded domestic flights. Delta's worldwide computer systems failed in August 2016, causing massive cancellations. This time, international flights weren't affected, and the grounding was relatively short. Still, with limited updates on flight schedules, irate customers took to social media.