An anonymous reader quotes a report from The Guardian: The US supreme court grappled on Wednesday with a bid by Meta's Facebook to scuttle a federal securities fraud lawsuit brought by shareholders who accused the social media platform of misleading them about the misuse of user data. The justices heard arguments in Facebook's appeal of a lower court's decision allowing the 2018 class action suit led by Amalgamated Bank to proceed. The suit seeks unspecified monetary damages in part to recoup the lost value of the Facebook stock held by the investors. It is one of two cases coming before them this month -- the other one involving artificial intelligence chipmaker Nvidia on 13 November -- that could lead to rulings making it harder for private litigants to hold companies to account for alleged securities fraud.

At issue is whether Facebook broke the law when it failed to detail the prior data breach in subsequent business-risk disclosures, and instead portrayed the risk of such incidents as purely hypothetical. Facebook argued in a supreme court brief that it was not required to reveal that its warned-of risk had already materialized because "a reasonable investor" would understand risk disclosures to be forward-looking statements. "When we think about these questions, we're not looking only to lies or complete false statements," the liberal justice Elena Kagan told Kannon Shanmugam, the lawyer for Facebook. "We're also looking to misleading statements or misleading omissions." The conservative justice Samuel Alito asked Shanmugam: "Isn't it the case that an evaluation of risks is always forward-looking?" "It is. And that is essentially what underlies our argument here," Shanmugam responded.

The plaintiffs accused Facebook of misleading investors in violation of the Securities Exchange Act, a 1934 federal law that requires publicly traded companies to disclose their business risks. They claimed the company unlawfully withheld information from investors about a 2015 data breach involving British political consulting firm Cambridge Analytica that affected more than 30 million Facebook users. Edward Davila, a US district judge, dismissed the lawsuit but the San Francisco-based ninth US circuit court of appeals revived it. The supreme court's ruling is expected by the end of June.

An anonymous reader quotes a report from the New York Times: Meta will allow U.S. government agencies and contractors working on national security to use its artificial intelligence models for military purposes, the company said on Monday, in a shift from its policy that prohibited the use of its technology for such efforts. Meta said that it would make its A.I. models, called Llama, available to federal agencies and that it was working with defense contractors such as Lockheed Martin and Booz Allen as well as defense-focused tech companies including Palantir and Anduril. The Llama models are "open source," which means the technology can be freely copied and distributed by other developers, companies and governments.

Meta's move is an exception to its "acceptable use policy," which forbade the use of the company's A.I. software for "military, warfare, nuclear industries," among other purposes. In a blog post on Monday, Nick Clegg, Meta's president of global affairs, said the company now backed "responsible and ethical uses" of the technology that supported the United States and "democratic values" in a global race for A.I. supremacy. "Meta wants to play its part to support the safety, security and economic prosperity of America -- and of its closest allies too," Mr. Clegg wrote. He added that "widespread adoption of American open source A.I. models serves both economic and security interests." The company said it would also share its technology with members of the Five Eyes intelligence alliance: Canada, Britain, Australia and New Zealand in addition to the United States.

An anonymous reader quotes a report from Engadget: Last month at Meta Connect, Mark Zuckerberg said that Meta AI was "on track" to become the most-used generative AI assistant in the world. The company has now passed a significant milestone toward that goal, with Meta AI passing the 500 million user mark, Zuckerberg revealed during the company's latest earnings call. The half billion user mark comes just barely a year after the social network first launched its AI assistant last fall. Zuckerberg said the company still expects to become the "most-used" assistant by the end of 2024, though he's never specified how the company is measuring that metric. Zuck said that AI-driven improvements in feed and video recommendations have led to an 8% increase in time spent on Facebook and 5% increase on Instagram this year. Advertisers have also leveraged the company's AI tools to generate over 15 million ads in just the past month.

Separately, Meta's Threads app is gaining over a million new sign-ups daily, with nearly 275 million total monthly users.

According to The Verge, Meta has "begun laying off employees across various departments, including WhatsApp, Instagram, and Reality Labs." From the report: Rather than a mass, companywide layoff, these smaller cuts seem to coincide with reorganizations of specific teams. Some Meta employees have started posting that they've been laid off. Among them is Jane Manchun Wong, who gained notoriety for reporting on unannounced features coming to apps before joining the Threads team in 2023. Meta laid off 11,000 employees in 2022 and then cut 10,000 more people as part of CEO Mark Zuckerberg's "year of efficiency" in 2023.

Further reading: Tech Layoffs Highest Since Dot-Com Crash

An anonymous reader quotes a report from Reuters: Adobe (ADBE.O), opens new tab on Monday said it has started publicly distributing an AI model that can generate video from text prompts, joining the growing field of companies trying to upend film and television production using generative artificial intelligence. The Firefly Video Model, as the technology is called, will compete with OpenAI's Sora, which was introduced earlier this year, while TikTok owner ByteDance and Meta Platforms have also announced their video tools in recent months.

Facing much larger rivals, Adobe has staked its future on building models trained on data that it has rights to use, ensuring the output can be legally used in commercial work. San Jose, California-based Adobe will start opening up the tool to people who have signed up for its waiting list but did not give a general release date. While Adobe has not yet announced any customers using its video tools, it said on Monday that PepsiCo-owned Gatorade will use its image generation model for a site where customers can order custom-made bottles, and Mattel has been using Adobe tools to help design packaging for its Barbie line of dolls.

For its video tools, Adobe has aimed at making them practical for everyday use by video creators and editors, with a special focus on making the footage blend in with conventional footage, said Ely Greenfield, Adobe's chief technology officer for digital media. "We really focus on fine-grain control, teaching the model the concepts that video editors and videographers use -- things like camera position, camera angle, camera motion," Greenfield told Reuters in an interview.

An anonymous reader quotes a report from TechCrunch: The European Union's top court has sided with a privacy challenge to Meta's data retention policies. It ruled on Friday that social networks, such as Facebook, cannot keep using people's information for ad targeting indefinitely. The judgement could have major implications on the way Meta and other ad-funded social networks operate in the region. Limits on how long personal data can be kept must be applied in order to comply with data minimization principles contained in the bloc's General Data Protection Regulation (GDPR). Breaches of the regime can lead to fines of up to 4% of global annual turnover -- which, in Meta's case, could put it on the hook for billions more in penalties (NB: it is already at the top of the leaderboard of Big Tech GDPR breachers). [...]

The original challenge to Meta's ad business dates back to 2014 but was not fully heard in Austria until 2020, per noyb. The Austrian supreme court then referred several legal questions to the CJEU in 2021. Some were answered via a separate challenge to Meta/Facebook, in a July 2023 CJEU ruling -- which struck down the company's ability to claim a "legitimate interest" to process people's data for ads. The remaining two questions have now been dealt with by the CJEU. And it's more bad news for Meta's surveillance-based ad business. Limits do apply. Summarizing this component of the judgement in a press release, the CJEU wrote: "An online social network such as Facebook cannot use all of the personal data obtained for the purposes of targeted advertising, without restriction as to time and without distinction as to type of data."

The ruling looks important on account of how ads businesses, such as Meta's, function. Crudely put, the more of your data they can grab, the better -- as far as they are concerned. Back in 2022, an internal memo penned by Meta engineers which was obtained by Vice's Motherboard likened its data collection practices to tipping bottles of ink into a vast lake and suggested the company's aggregation of personal data lacked controls and did not lend itself to being able to silo different types of data or apply data retention limits. Although Meta claimed at the time that the document "does not describe our extensive processes and controls to comply with privacy regulations." How exactly the adtech giant will need to amend its data retention practices following the CJEU ruling remains to be seen. But the law is clear that it must have limits. "[Advertising] companies must develop data management protocols to gradually delete unneeded data or stop using them," noyb suggests. The court also weighed in a second question that concerns sensitive data that has been "manifestly made public" by the data subject, "and whether sensitive characteristics could be used for ad targeting because of that," reports TechCrunch. "The court ruled that it could not, maintaining the GDPR's purpose limitation principle."

An anonymous reader quotes a report from Ars Technica: On Friday, Meta announced a preview of Movie Gen, a new suite of AI models designed to create and manipulate video, audio, and images, including creating a realistic video from a single photo of a person. The company claims the models outperform other video-synthesis models when evaluated by humans, pushing us closer to a future where anyone can synthesize a full video of any subject on demand. The company does not yet have plans of when or how it will release these capabilities to the public, but Meta says Movie Gen is a tool that may allow people to "enhance their inherent creativity" rather than replace human artists and animators. The company envisions future applications such as easily creating and editing "day in the life" videos for social media platforms or generating personalized animated birthday greetings.

Movie Gen builds on Meta's previous work in video synthesis, following 2022's Make-A-Scene video generator and the Emu image-synthesis model. Using text prompts for guidance, this latest system can generate custom videos with sounds for the first time, edit and insert changes into existing videos, and transform images of people into realistic personalized videos. [...] Movie Gen's video-generation model can create 1080p high-definition videos up to 16 seconds long at 16 frames per second from text descriptions or an image input. Meta claims the model can handle complex concepts like object motion, subject-object interactions, and camera movements. You can view example videos here. Meta also released a research paper with more technical information about the model.

As for the training data, the company says it trained these models on a combination of "licensed and publicly available datasets." Ars notes that this "very likely includes videos uploaded by Facebook and Instagram users over the years, although this is speculation based on Meta's current policies and previous behavior."

Novelist Christopher Farnsworth has filed a class-action lawsuit (PDF) against Meta, accusing the company of using his and other authors' pirated books to train its Llama AI model. Farnsworth seeks damages and an order to stop the alleged copyright infringement, joining a growing group of creators suing tech companies over unauthorized AI training. Reuters reports: Farnsworth said in the lawsuit on Tuesday that Meta fed Llama, which powers its AI chatbots, thousands of pirated books to teach it how to respond to human prompts. Other authors including Ta-Nehisi Coates, former Arkansas governor Mike Huckabee and comedian Sarah Silverman have brought similar class-action claims against Meta in the same court over its alleged use of their books in AI training. [...] Several groups of copyright owners including writers, visual artists and music publishers have sued major tech companies over the unauthorized use of their work to train generative AI systems. The companies have argued that their AI training is protected by the copyright doctrine of fair use and that the lawsuits threaten the burgeoning AI industry.

At its Connect event earlier this week, Meta said it'll be adding conversational voices to its AI chatbot from celebrities like Awkwafina, John Cena, Dame Judi Dench, Keegan-Michael Key and Kristen Bell. The Verge reports: These celebrity voices will only be available to US users of Meta's apps to start. And if you prefer a voice that is a little more mundane, you can also pick from non-celeb voices with names like "Aspen," "Atlas," or "Clover." [...] Meta is explicitly announcing celebrity partnerships, which likely involve payment or some other deal. Meta hasn't shared those details, but the company has paid each celebrity "millions of dollars" for their voices, according to The Wall Street Journal. And in negotiations, some of the people reportedly wanted to limit what their voices could say and to make sure they weren't liable if Meta AI was used. [...]

Meta's AI updates aren't just about voice conversations. Its chatbot will also now "answer questions about your photos" when you upload images. Send a picture of a cake, ask how to make it, and it'll grab you a recipe that hopefully does just that. And if you want something "added, changed, or removed" from an image, Meta says you can describe anything from "changing your outfit to replacing the background with a rainbow," and it'll carry out that request.

Meta has been fined $101.5 million by the Irish Data Protection Commission (DPC) for storing over half a billion user passwords in plain text for years, with some engineers having access to this data for over a decade. The issue, discovered in 2019, predominantly affected non-US users, especially those using Facebook Lite. AppleInsider reports: Meta Ireland was found guilty of infringing four parts of GDPR, including how it "failed to notify the DPC of a personal data breach concerning storage of user passwords in plain text." Meta Ireland did report the failure, but only some months after it was discovered. "It is widely accepted that user passwords should not be stored in plaintext, considering the risks of abuse that arise from persons accessing such data," said Graham Doyle, Deputy Commissioner at the DPC, in a statement about the fine. "It must be borne in mind, that the passwords the subject of consideration in this case, are particularly sensitive, as they would enable access to users' social media accounts."

Other than the fine and an official reprimand, the full extent of the DPC's ruling is yet to be released publicly. The details published so far do not reveal whether the passwords included any of US users as well as ones in Ireland or across the rest of the European Union. It's most likely that the issue concerns only non-US users, however. That's because in 2019, Facebook told CNN that the majority of the plain text passwords were for a service called Facebook Lite, which it described as being a cut-down service for areas of the world with slower connectivity.

An anonymous reader quotes a report from TechCrunch: Meta CEO Mark Zuckerberg announced updates to the company's Ray-Ban Meta smart glasses at Meta Connect 2024 on Wednesday. [...] Meta says its smart glasses will soon have real-time AI video capabilities, meaning you can ask the Ray Ban Meta glasses questions about what you're seeing in front of you, and Meta AI will verbally answer you in real time. Currently, the Ray-Ban Meta glasses can only take a picture and describe that to you or answer questions about it, but the video upgrade should make the experience more natural, in theory at least. These multimodal features are slated to come later this year. In a demo, users could ask Ray-Ban Meta questions about a meal they were cooking, or city scenes taking place in front of them. The real-time video capabilities mean that Meta's AI should be able to process live action and respond in an audible way. This is easier said than done, however, and we'll have to see how fast and seamless the feature is in practice. We've seen demonstrations of these real-time AI video capabilities from Google and OpenAI, but Meta would be the first to launch such features in a consumer product.

Zuckerberg also announced live language translation for Ray-Ban Meta. English speaking users can talk to someone speaking French, Italian, or Spanish, and their Ray-Ban Meta glasses should be able to translate what the other person is saying into their language of choice. Meta says this feature is coming later this year and will include more language later on. The Ray-Ban Meta glasses are getting reminders, which will allow people to ask Meta AI to remind them about things they look at through the smart glasses. In a demo, a user asked their Ray-Ban Meta glasses to remember a jacket they were looking at, so they could share the image with a friend later on. Meta announced that integrations with Amazon Music, Audible, and iHeart are coming to its smart glasses. This should make it easier for people to listen to music on their streaming service of choice using the glasses' built-in speakers. The Ray-Ban Meta glasses will also gain the ability to scan QR codes or phone numbers from the glasses. Users can ask the glasses to scan something, and the QR code will immediately open on the person's phone with no further action required. Zuckerberg also unveiled the company's prototype AR glasses codenamed Orion, which feature a 70-degree field of view, Micro LED projectors, and silicon carbide lenses that beam graphics directly into the wearer's eyes.

Amazon, Meta, and Tesla were named by the International Trade Union Confederation (ITUC) as some of the worst corporate underminers of democracy . These companies were accused of union busting, monopolizing media and technology, violating human rights, contributing to climate change, and fostering political movements that threaten democratic institutions. The full list of "corporate underminers of democracy for 2024" is Amazon, Blackstone Group, ExxonMobil, Glencore, Meta, Tesla and the Vanguard Group. The Register reports: The International Trade Union Confederation (ITUC) today published a list of seven companies it said were "emblematic" of the ways large international corporations have begun tossing their weight around to influence global affairs. Those businesses, ITUC noted, violate trade union and alleged human rights, monopolize media and technology, exacerbate the climate catastrophe and try to privatize public services in a way that "protects and expands [their] own profits by undermining democracy." "These companies deploy complex lobbying operations to undermine popular will and disrupt existing or nascent global policy that could hold them accountable," ITUC wrote. The desire for greater corporate power, the Confederation added, invariably puts corporate interests in bed with anti-democratic political movements like the modern far-right. Right-wing politicians, ITUC noted, tend to lower taxes, undercut higher wages for workers, crack down on trade unions, and the like - all things sure to please the likes of corporations like Amazon, Tesla, and Meta as evidenced by plenty of prior reporting and research. For Amazon, the ITUC criticized the company for becoming "notorious for its union busting and low wages, monopoly in e-commerce, egregious carbon emissions through its AWS [datacenters], corporate tax evasion and lobbying."

Meta was accused of exploiting user data, undermining privacy laws, manipulating global information, and failing to regulate harmful content on its platforms. "Meta's algorithms can quite literally alter humanity's perceptions of reality," ITUC said. "Its revenue model exploits trillions of personalized data points to deliver highly effective advertising." Some have referred to the company as "a foreign state, populated by people without sovereignty, ruled by a leader with absolute power."

As for Tesla, it was condemned for poor labor practices, anti-union politics, unsafe working conditions, human rights violations, and environmental damage in its supply chain. "The world's most highly-valued automaker has quickly become known as one of its most belligerent employers. Tesla's rapid market success has been outpaced only by the descent of its corporate leaders into anti-democratic, anti-union politics."

An anonymous reader quotes a report from TechCrunch: The home of the Golden State Warriors was packed on Tuesday evening this week, but it wasn't to watch Steph Curry. Thousands of fans gathered at the Chase Center in downtown San Francisco to watch one of Silicon Valley's biggest ballers, Meta CEO Mark Zuckerberg, sit down for a conversation with the hosts of the Acquired podcast, David Rosenthal and Ben Gilbert. Shortly after hopping onstage, Zuckerberg joked that he might need to schedule his next appearance in order to apologize for whatever he was about to say. After a beat, he added that he was just kidding and that, in fact, his days of apologizing are over.

Zuckerberg has had something of a rebrand recently. He raises cattle in Hawaii now, has long bouncy curls and a gold chain, and commissions Roman-style statues of his wife. Onstage, the Facebook founder wore a boxy T-shirt he designed himself alongside fashion designer Mike Amiri that read "learning through suffering" in Greek letters. The tongue-in-cheek comment about apologizing was a reference to Nvidia CEO Jensen Huang, who himself addressed a flub he'd made on the Acquired podcast earlier this year, via a pre-recorded video on a screen hanging over the crowd. Huang's original comment -- that he never would have started Nvidia if he knew what he did today -- was grossly taken out of context, he said. In the video, he clarified that he absolutely would start Nvidia again, and that his comment was more about the blissful ignorance of startup founders.

While Zuckerberg's opening comment was just a friendly jab at Huang, it set the tone for Zuckerberg's new attitude toward life and business. The founder of Facebook has spent a lot of time apologizing for Facebook's content moderation issues. But when reflecting on the biggest mistakes of his career, Zuckerberg said his largest one was a "political miscalculation" that he described as a "20-year mistake." Specifically, he said, he'd taken too much ownership for problems allegedly out of Facebook's control. "Some of the things they were asserting that we were doing or were responsible for, I don't actually think we were," said Zuckerberg. "When it's a political problem there are people operating in good faith who are identifying a problem and want something to be fixed, and there are people who are just looking for someone to blame."

An anonymous reader quotes a report from TechCrunch: Meta on Friday published an update on how it plans to comply with the Digital Markets Act (DMA), the European law that aims to promote competition in digital marketplaces, where the law concerns the company's messaging apps, Messenger and WhatsApp. As Meta notes in a blog post, the DMA requires that it provide an option in WhatsApp and Messenger to connect with interoperable third-party messaging services and apps. Meta says it's building notifications into WhatsApp and Messenger to inform users about these third-party integrations and alert them when a newly compatible third-party messaging app comes online. The company also says it's introducing an onboarding flow in WhatsApp and Messenger where users can learn more about third-party chats and switch them on. From the flow, users will be able to set up a designated folder for third-party messages or, alternatively, opt for a combined inbox.

In 2025, Meta will roll out group functionality for third-party chats, and, in 2027, it'll launch voice and video calling in accordance with the DMA. And at some unspecified point in the future, Meta will bring "rich messaging" features for third-party chats to WhatsApp and Messenger, like reactions, direct replies, typing indicators and read receipts, the company says. "We will keep collaborating with third-party messaging services in order to provide the safest and best experience," Meta wrote in the post. "Users will start to see the third-party chat option when a third-party messaging service has built, tested and launched the necessary technology to make the feature a positive and secure user experience."

An anonymous reader quotes a report from Reuters: Facebook owner Meta struck a deal to buy geothermal power from Sage Geosystems to supply its U.S. data centers, it said on Monday, as it races to build out the infrastructure to support its massive investments in energy-hungry artificial intelligence. The first phase of the 150-megawatt project should be operational by 2027 and "significantly" expand the use of geothermal power in the United States, the social media company said. The location has yet to be determined, but the companies said it will be east of the Rocky Mountains. Financial terms of the deal were not disclosed. [...]

Sage, which is based in Houston, is a four-year-old startup developing next-generation technology that it says can be deployed in more locations than traditional geothermal, which requires naturally occurring underground reservoirs of hot water and accounts for 0.4% of U.S. power generation. The company is backed by oil and gas firms Chesapeake Energy and Nabors Industries and venture capital firms Virya and Helium-3 Ventures. The project for Meta would be Sage's largest to date by far. The company said it first validated the technology in the field just two years ago. A Meta spokesperson told Reuters the company expected the Sage Geosystems energy to feed the power grid, rather than directly supplying any specific data center.