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Microsoft Makes High-Stakes Play in Tech Cold War With Emirati A.I. Deal

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Microsoft on Tuesday plans to announce a $1.5 billion investment in G42, an artificial intelligence giant in the United Arab Emirates, in a deal largely orchestrated by the Biden administration to box out China as Washington and Beijing battle over who will exercise technological influence in the Gulf region and beyond.

Under the partnership, Microsoft will give G42 permission to sell Microsoft services that use powerful A.I. chips, which are used to train and fine-tune generative A.I. models. In return, G42, which has been under scrutiny by Washington for its ties to China, will use Microsoft’s cloud services and accede to a security arrangement negotiated in detailed conversations with the U.S. government. It places a series of protections on the A.I. products shared with G42 and includes an agreement to strip Chinese gear out of G42’s operations, among other steps.

“When it comes to emerging technology, you cannot be both in China’s camp and our camp,” said Gina Raimondo, the Commerce Secretary, who traveled twice to the U.A.E. to talk about security arrangements for this and other partnerships.

The accord is highly unusual, Brad Smith, Microsoft’s president, said in an interview, reflecting the U.S. government’s extraordinary concern about protecting the intellectual property behind A.I. programs.

“The U.S. is quite naturally concerned that the most important technology is guarded by a trusted U.S. company,” said Mr. Smith, who will take a seat on G42’s board.

The investment could help the United States push back against China’s rising influence in the Gulf region. If the moves succeed, G42 would be brought into the U.S. fold and pare back its ties with China. The deal could also become a model for how U.S. firms leverage their technological leadership in A.I. to lure countries away from Chinese tech, while reaping huge financial awards.

But the matter is sensitive, as U.S. officials have raised questions about G42. This year, a congressional committee wrote a letter urging the Commerce Department to look into whether G42 should be put under trade restrictions for its ties to China, which include partnerships with Chinese firms and employees who came from government-connected companies.

In an interview, Ms. Raimondo, who has been at the center of an effort to prevent China from obtaining the most advanced semiconductors and the equipment to make them, said the agreement “does not authorize the transfer of artificial intelligence, or A.I. models, or GPUs” — the processors needed to develop A.I. applications — and “assures those technologies can be safely developed, protected and deployed.”

While the U.A.E. and United States did not sign a separate accord, Ms. Raimondo said, “We have been extensively briefed and we are comfortable that this agreement is consistent with our values.”

In a statement, Peng Xiao, the group chief executive of G42, said that “through Microsoft’s strategic investment, we are advancing our mission to deliver cutting-edge A.I. technologies at scale.”

The United States and China have been racing to exert technological influence in the Gulf, where hundreds of billions of dollars are up for grabs and major investors, including Saudi Arabia, are expected to spend billions on the technology. In the rush to diversify away from oil, many leaders in the region have set their sights on A.I. — and have been happy to play the United States and China off each other.

Although the U.A.E. is an important U.S. diplomatic and intelligence partner, and one of the largest buyers of American weapons, it has increasingly expanded its military and economic ties with China. A portion of its domestic surveillance system is built on Chinese technology and its telecommunications work on hardware from Huawei, a Chinese supplier. That has fed the worries of U.S. officials, who often visit the Persian Gulf nation to discuss security issues.

But U.S. officials are also concerned that the spread of powerful A.I. technology critical to national security could eventually be used by China or by Chinese government-linked engineers, if not sufficiently guarded. Last month, a U.S. cybersecurity review board sharply criticized Microsoft over a hack in which Chinese attackers gained access to data from top officials. Any major leak — for instance, by G42 selling Microsoft A.I. solutions to companies set up in the region by China — would go against Biden administration policies that have sought to limit China’s access to the cutting-edge technology.

“This is among the most advanced technology that the U.S. possesses,” said Gregory Allen, a researcher at the Center for Strategic and International Studies and a former U.S. defense official who worked on A.I. “There should be very strategic rationale for offshoring it anywhere.”

For Microsoft, a deal with G42 offers potential access to huge Emirati wealth. The company, whose chairman is Sheikh Tahnoon bin Zayed, the Emirates’ national security adviser and the younger brother of the country’s ruler, is a core part of the U.A.E.’s efforts to become a major A.I. player.

Despite a name whimsically drawn from “The Hitchhiker’s Guide to the Galaxy,” in which the answer to the “ultimate question of life” is 42, G42 is deeply embedded in the Emirati security state. It specializes in A.I. and recently worked to build an Arabic chatbot, called Jais.

G42 is also focused on biotechnology and surveillance. Several of its executives, including Mr. Xiao, were associated with a company called DarkMatter, an Emirati cyber-intelligence and hacking firm that employs former spies.

In its letter this year, the bipartisan House Select Committee on the Chinese Communist Party said Mr. Xiao was connected to an expansive network of companies that “materially support” the Chinese military’s technological advancement.

The origins of Tuesday’s accord go back to White House meetings last year, when top national security aides raised the question with tech executives of how to encourage business arrangements that would deepen U.S. ties to firms around the world, especially those China is also interested in.

Under the agreement, G42 will cease using Huawei telecom equipment, which the United States fears could provide a backdoor for the Chinese intelligence agencies. The accord further commits G42 to seeking permission before it shares its technologies with other governments or militaries and prohibits it from using the technology for surveillance. Microsoft will also have the power to audit G42’s use of its technology.

G42 would get use of A.I. computing power in Microsoft’s data center in the U.A.E., sensitive technology that cannot be sold in the country without an export license. Access to the computing power would likely give G42 a competitive edge in the region. A second phase of the deal, which could prove even more controversial and has not yet been negotiated, could transfer some of Microsoft’s A.I. technology to G42.

American intelligence officials have raised concerns about G42’s relationship to China in a series of classified assessments, The New York Times previously reported. Biden administration officials have also pushed their Emirati counterparts to cut the company’s ties to China. Some officials believe the U.S. pressure campaign has yielded some results, but remain concerned about less overt ties between G42 and China.

One G42 executive previously worked at the Chinese A.I. surveillance company Yitu, which has extensive ties to China’s security services and runs facial-recognition powered monitoring across the country. The company has also had ties to a Chinese genetics giant, BGI, whose subsidiaries were placed on a blacklist by the Biden administration last year. Mr. Xiao also led a firm that was involved in 2019 in starting and operating a social media app, ToTok, that U.S. intelligence agencies said was an Emirati spy tool used to harvest user data.

In recent months, G42 has agreed to walk back some of its China ties, including divesting a stake it took in TikTok owner ByteDance and pulling out Huawei technology from its operations, according to U.S. officials.

Edward Wong contributed reporting.



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Inside OpenAI’s Library – The New York Times

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The two-story library has Oriental rugs, shaded lamps dotting its desks and rows of hardbacks lining its walls. It is the architectural centerpiece of the offices of OpenAI, the start-up whose online chatbot, ChatGPT, showed the world that machines can instantly generate their own poetry and prose.

The building, which was once a mayonnaise factory, looks like a typical tech office, with its communal work spaces, well-stocked micro-kitchens and private nap rooms spread across three floors in San Francisco’s Mission District.

But then there is that library, with the ambience of a Victorian Era reading room. Its shelves offer everything from Homer’s “The Iliad” to David Deutsch’s “The Beginning of Infinity,” a favorite of Sam Altman, OpenAI’s chief executive.

Built at Mr. Altman’s request and stocked with titles suggested by his staff, the OpenAI library is an apt metaphor for the world’s hottest tech company, whose success was fueled by language — lots and lots of language. OpenAI’s chatbot was not built like the average internet app. ChatGPT learned its skills by analyzing huge amounts of text that was written, edited and curated by humans, including encyclopedia articles, news stories, poetry and, yes, books.

The library also represents the paradox at the heart of OpenAI’s technology. Authors and publishers, including The New York Times, are suing OpenAI, claiming the company illegally used their copyrighted content to build its A.I. systems. Many authors worry that the technology will ultimately take away their livelihood.

Many OpenAI employees, on the other hand, believe the company is using human creativity to fuel more human creativity. They believe their use of copyrighted works is “fair use” under the law, because they are transforming these works into something new.

“To say that this is a public debate right now is an understatement,” said Shannon Gaffney, co-founder and managing partner of SkB Architects, the architectural firm that renovated OpenAI’s headquarters and designed its library. “Though things might look like they are going in different directions, the library serves as a constant reminder of human creativity.”

When OpenAI hired Ms. Gaffney’s firm to renovate the building in 2019, Mr. Altman said he wanted a library with an academic aura.

He wanted it to be a reminder of the Green Library, a Romanesque library at Stanford University, where he was a student for two years before dropping out to build a social media app; the Rose Reading Room, a Beaux-Arts study hall on the top floor of the New York Public Library in Midtown Manhattan; and the library-like bar inside the now defunct Nomad Hotel, 15 blocks south of the Rose.

“My dining room and living room at home is inside a library — floor-to-ceiling books all the way around,” Mr. Altman said in an interview. “There is something about sitting in the middle of knowledge on the shelves at vast scale that I find interesting.”

Many titles, like “English Masterpieces, 700-1900” and “Ideas and Images in World Art,” seem like the weighty hardbacks that professional decorators place strategically inside hotel lobbies because they look the part. Still, the library is a reflection of the organization that built it.

On a recent afternoon, two paperbacks sat beside each other at eye-level: “Birds of Lake Merritt” (a field guide to the birds found in a wildlife refuge in Oakland, Calif.) and “Fake Birds of Lake Merritt” (a parody written by GPT-3, an early version of the technology that drives ChatGPT).

Some employees see the library as a quieter place to work. Long Ouyang, an A.I. researcher, keeps a rolling desk against the wall. Others see it as an unusually elegant break room. On weekends, Ryan Greene, another researcher, pumps his digital music through the audio speakers tucked among the hardbacks.

It is, other employees said, a far more inspiring place to work than a cubicle. “This is why so many people choose to work in the library,” Ms. Staudacher said.

Recently, Mr. Greene began feeding lists of his favorite books into ChatGPT and asking for new recommendations. At one point, the chatbot recommended “The Book of Disquiet,” a posthumously published autobiography from the Portuguese writer Fernando Pessoa. A friend, who knew his tastes well, had recommended that he read the same book.

“Given the trends and patterns in things that have happened in the past, the technology can suggest things for the future,” Mr. Greene said.

Ms. Gaffney, from OpenAI’s architectural firm, argued that this blend of the human and the machine will continue. Then she paused, before adding: “That, at least, is what I hope and feel.”



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Why TikTok Users Are Blocking Celebrities

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As protests over the war in Gaza unfolded blocks away, last week’s Met Gala was largely devoid of political statements on the red carpet. That the organizers of fashion’s most powerful annual spectacle (one for which tickets cost $75,000 this year) achieved this proved surprising to many observers. Less than two weeks later, though, a fast-growing online protest movement is taking shape. At least, it is on TikTok, the social media platform that was a sponsor of the Met event.

Blockout 2024, also referred to as Operation Blockout or Celebrity Block Party, targets high-profile figures who participants feel are not using their profiles and platforms to speak out about the Israel-Hamas war and wider humanitarian crises. Here’s what has happened so far, what supporters hope to achieve and why it all began.

The criticism began on May 6, when Haley Kalil (@haleyybaylee on social media), an influencer who was a host on E! News before the event, posted a TikTok video of herself wearing a lavish 18th-century-style floral gown and headdress with audio from Sofia Coppola’s 2006 film “Marie Antoinette,” in which Kirsten Dunst proclaims, “Let them eat cake!”

The clip (for which Ms. Kalil later apologized and which was deleted) was viewed widely. Given the current global conflicts and humanitarian crises, critics described it as “tone deaf.” Then posts emerged comparing ostentatious costumes worn by celebrities on the Met red carpet to scenes from “The Hunger Games,” in which affluent citizens in opulent outfits wine and dine while watching the suffering of the impoverished districts for sport.

Images of Zendaya, a Met Gala co-chair, spliced with photographs of Palestinian children, incited the online masses. A rallying cry soon came from @ladyfromtheoutside, a TikTok creator who found inspiration in Ms. Kalil’s parroting of Marie Antoinette.

“It’s time for the people to conduct what I want to call a digital guillotine — a ‘digitine,’ if you will,” she said in a May 8 video post with two million views. “It’s time to block all the celebrities, influencers and wealthy socialites who are not using their resources to help those in dire need. We gave them their platforms. It’s time to take it back, take our views away, our likes, our comments, our money.”

“Block lists” of celebrities thought to be deserving of being blocked were published and widely shared online.

The movement is made up of pro-Palestinian supporters who have been assessing the actions and words of A-listers in order to decide if they have adequately responded to the conflict. If they have said nothing or not enough, the movement calls for those supporting Gaza to block that celebrity on social media. What constitutes sufficient action by the famous person — be it calls for a cease-fire, donations to aid charities or statements — appears unclear and can vary from celebrity to celebrity.

“Blockout” supporters argue that blocking is important because brands look at data on the followers and engagement of influencers and celebrities on social media before choosing whether to work with them to promote a product. Blocking someone on social media means you no longer see any posts from the person’s accounts, and it gives the blocker more control over who has access to their own updates and personal information. It can have more impact than unfollowing a celebrity account because many product deals thrive on targeted ads and views that can accumulate even if a user simply sees a post, without liking or sharing it.

If enough people block a content creator, it could reduce the creator’s ability to make money. Also, adherents of this thinking say, why follow someone whose values don’t align with yours?

Attendees with huge followings, like Zendaya, Kim Kardashian and Kylie Jenner, have been at the top of the chopping blocks. But so have celebrities who didn’t attend the gala this year, including Justin Bieber, Taylor Swift and Selena Gomez.

Vogue, which according to Puck News published 570 Met Gala stories on its platforms and recorded more than a billion video views of content from the night, has also been targeted because of its ties to the event.

“The Met Gala is by far and away Vogue’s biggest cash cow,” Elaina Bell, a former Vogue employee, said in a TikTok post with 850,000 views. She explained that the event sold sponsorships “based on the data of past events,” adding, “How the Met Gala is seen is so important to the bottom line of Vogue specifically but also to Condé Nast.”

It certainly raised some eyebrows. The dress code was “The Garden of Time,” inspired by the J.G. Ballard short story of the same name. It’s an allegorical tale about an aristocratic couple isolated in their estate of fading beauty harassed by an enormous crowd preparing to overrun and destroy the space. Rather on the nose.

Yes. Some posts say the blockout is a negative example of “cancel culture.” Others suggest that, like other social media-led movements, it is digital posturing that generates little meaningful change.

Some argue that celebrities do not have a duty (or the awareness) to speak out on complicated geopolitical issues, and they question why it matters what famous people think about those issues, anyway. Others feel the movement has blurred parameters, given that some A-listers, like Jennifer Lopez and Billie Eilish, have previously shown support for a cease-fire in Gaza but are being punished for not speaking up now.

Several stars on the widely circulated block lists, including Lizzo and the influencer Chris Olsen, posted their first public videos asking followers to donate in support of aid organizations serving Palestinians. Blockout supporters have also worked to “boost” celebrities who have recently spoken about the conflict, like Macklemore, Dua Lipa and The Weeknd.

According to metrics from the analytics company Social Blade, many names on block lists have lost tens or hundreds of thousand of followers per day since the “digitine” began. But murky claims that stars like Kim Kardashian have lost millions of followers are unsubstantiated.

Will more A-listers start speaking out on the red carpet as a result of the lists? It is too soon to tell. But for frequent users of TikTok, the brand aura of the Met Gala is being profoundly altered. And while social-media-led boycotts are by no means unprecedented, this latest movement is a clear example of the growing power of creators to redistribute or even weaponize ​platforms that are cornerstones of a modern celebrity-centric — and capitalist — system.





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Grand Theft Auto maker firms up GTA 6 release date

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The latest instalment of the hugely popular series will be released in autumn 2025, its publisher says.



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