The Almighty Buck

Meta To Start Testing AI Subscription Services 37

Meta will begin testing paid subscriptions for its Meta AI app and website, with a $7.99/month Meta One Plus plan and a more capable $19.99/month Meta One Premium plan offering. The test will start next month in Singapore, Guatemala, and Bolivia as Meta looks for AI revenue beyond advertising while continuing to offer a free tier. CNBC reports: Naomi Gleit, the head of product at Meta, revealed the subscription testing in an Instagram video, announcing that the plans "give people who use Meta AI more to work with, more capacity, bigger, more complex requests, and more room to create for businesses and creators."

Meta One Plus will cost $7.99 a month and the Meta One Premium plan will cost $19.99 a month, the company confirmed. The more expensive version offers users additional computing capacity to produce more comprehensive responses and other advanced features. The company will continue to provide a free version of the app and site.

"We're offering premium tools that allow you to enhance presence, supercharge content, automate tasks, and protect your brand," Gleit said in the post. "We're also thinking about how to bring this all together in a way that makes sense."
Businesses

Before Mass Layoffs, Meta Reassigns 7,000 Workers To Focus On AI 45

An anonymous reader quotes a report from the New York Times: Meta told employees on Monday that it was reassigning 7,000 workers to focus on new initiatives around artificial intelligence, the latest change in a company transformation spurred by the powerful technology. Employees will be moved to four new organizations focused on building new A.I. tools and apps, Janelle Gale, Meta's head of human resources, said in an internal memo. The organizations will use "A.I. native design structures" and have fewer managers per employee than other parts of the company, she said, adding that company leaders will send details about the new roles on Wednesday. The restructuring "will make us more productive and make the work more rewarding," Ms. Gale wrote. Meta declined to comment further on the changes. The move comes shortly before Meta begins laying off roughly 8,000 employees, or 10 percent of its work force. Ms. Gale also mentioned Wednesday's layoffs in her memo. "We know days like this are extremely hard, and we appreciate you showing up for each other," Ms. Gale said.

According to the NYT, employees have been asked to work remotely that day and emails about the layoffs would be sent at 4 a.m. local time. Employees in the United States will receive 16 weeks of severance pay, along with two extra weeks for every year they worked at Meta.
Facebook

Meta Layoffs Stress Harsh AI Reality Inside Zuckerberg's Company (cnbc.com) 46

Meta is expected to begin cutting about 8,000 jobs this week as it pours more money into AI infrastructure and looks to "offset" other investments, with additional layoffs reportedly possible later this year. According to CNBC, the morale has worsened inside the company. "Internally, there's an emerging sense of dread across wide swaths of the company," the report says, citing current and former Meta employees. "That's in part because more cuts are expected this year, including a potential round of layoffs in August, followed by another round later in the year, some of the sources said." From the report: [...] Whatever anxiety investors are experiencing, the feelings inside the company are more intense, with some longtime staffers questioning Meta's AI pursuits under AI chief Alexandr Wang, while also weighing if now is the time to leave for opportunities at other companies in the AI race, according to current and former employees. Data aggregated by Blind, an anonymous professional network that requires users to verify their employment with a work email address, reveals some of the internal malaise. Meta's overall rating by employees on Blind has declined 25% from a peak in the second quarter of 2024 to the current period, with a 39% drop in its culture rating. In every category other than compensation, Meta has seen a ratings decline and dramatically underperforms rivals Amazon, Google and Netflix, the Blind data reveals.

The company's full-court press with AI included the recent debut of an employee tracking tool intended to collect data from staffers' actions, such as mouse movements and keystrokes on their work computers. The Model Capability Initiative, or MCI, as it's called, is part of Meta's efforts to train AI models to power digital agents that can perform various coding and white-collar tasks. Employees have characterized the data tracking tool as "dystopian," according to messages viewed by CNBC, with some workers expressing fear that personal information could be leaked. Some Meta workers have noted that their workplace computers appear slower since the company initiated the project, adding to their frustration, sources said.

Meta workers responded by creating an online petition that urges Zuckerberg and leadership to shutter the project. "Collecting and repurposing this kind of data raises serious concerns around privacy, consent, and trust in the workplace," the petition says. "It should not be the norm that companies of any size are permitted to exploit their employees by nonconsensually extracting their data for the purposes of AI training."
Further reading: NYT: 'Meta's Embrace of AI Is Making Its Employees Miserable'
Facebook

Meta Employees Launch Protest Against Mouse-Tracking Tech At US Offices (reuters.com) 67

An anonymous reader quotes a report from Reuters: Meta employees distributed flyers at multiple U.S. offices on Tuesday to protest the company's recent installation of mouse-tracking software on their computers, according to photos of the pamphlets seen by Reuters. The flyers, which appeared in meeting rooms, on vending machines and atop toilet paper dispensers at the Facebook owner's offices, encouraged staffers to sign an online petition against the move. "Don't want to work at the Employee Data Extraction Factory?" they asked, according to the photos seen by Reuters. [...]

The pamphlets and the petition both cite the U.S. National Labor Relations Act, saying "workers are legally protected when they choose to organize for the improvement of working conditions." In the UK, a group of Meta employees has started organizing a drive for unionization with United Tech and Allied Workers (UTAW), a branch of the Communication Workers Union. The employees set up a website to recruit members using the URL "Leanin.uk," a reference to former Chief Operating Officer Sheryl Sandberg's best-selling book encouraging women to seek equal footing in the workplace. "Meta's workers are paying the price for management's reckless and expensive bets. While executives chase speculative AI strategies, staff are facing devastating job cuts, draconian surveillance, and the cruel reality of being forced to train the inefficient systems being positioned to replace them," said Eleanor Payne, an organizer with UTAW.
"If we're building agents to help people complete everyday tasks using computers, our models need real examples of how people actually use them -- things like mouse movements, clicking buttons, and navigating dropdown menus," said a statement Meta issued earlier.
Piracy

Zuckerberg 'Personally Authorized and Encouraged' Meta's Copyright Infringement (variety.com) 76

Five major publishers and author Scott Turow have sued Meta and Mark Zuckerberg, alleging that Zuckerberg "personally authorized and actively encouraged" massive copyright infringement by using pirated books, journal articles, and web-scraped material to train Meta's Llama AI systems. Meta denies wrongdoing and says it will fight the case, arguing that courts have recognized AI training on copyrighted material as potentially fair use. Variety reports: "In their effort to win the AI 'arms race' and build a functional generative AI model, Defendants Meta and Zuckerberg followed their well-known motto: 'move fast and break things,'" the plaintiffs say in their lawsuit. "They first illegally torrented millions of copyrighted books and journal articles from notorious pirate sites and downloaded unauthorized web scrapes of virtually the entire internet. They then copied those stolen fruits many times over to train Meta's multibillion-dollar generative AI system called Llama. In doing so, Defendants engaged in one of the most massive infringements of copyrighted materials in history."

The suit was filed Tuesday (May 5) in the U.S. District Court for the Southern District of New York by five publishers (Hachette, Macmillan, McGraw Hill, Elsevier and Cengage) and Turow individually. The proposed class-action suit seeks unspecific monetary damages for the alleged copyright infringement. A copy of the lawsuit is available at this link (PDF). [...] the latest lawsuit alleges that Meta and Zuckerberg deliberately circumvented copyright-protection mechanisms -- and had considered paying to license the works before abandoning that strategy at "Zuckerberg's personal instruction." The suit essentially argues that the conduct described falls outside protections afforded by fair-use provisions of the U.S. copyright code.

Businesses

Meta Is Laying Off 10% of Its Workforce (qz.com) 46

Meta is reportedly cutting about 10% of its workforce, or roughly 8,000 jobs, while closing thousands of open roles it had intended to fill. "We're doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we're making," said Janelle Gale, Meta's chief people officer. The company had almost 79,000 employees at the start of the year. Quartz reports: Meta CEO Mark Zuckerberg has poured resources into building out AI capabilities, directing spending toward model development, chatbot products, and the engineering talent to support them. Meta set its 2026 capital expenditure guidance at $115 billion to $135 billion, almost double the $72 billion it spent in 2025. Employees have been encouraged to use AI agents internally for tasks such as writing code.

The early disclosure, Gale explained, was prompted by the fact that information about the cuts had already made its way into press reports before the company was ready to announce. "I know this is unwelcome news and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances," she wrote.

According to the memo, severance for affected workers in the United States will cover 18 months of COBRA health insurance premiums, along with a base pay component of 16 weeks that increases by two weeks for each year of service. Departing employees will have access to job placement assistance and, where applicable, help navigating immigration status. Packages outside the U.S. will vary by country.
Meta cut between 10% and 15% of its Reality Labs workforce in January, shut down several VR game studios, and shed about 700 positions across at least five divisions in March.
Facebook

Meta To Start Capturing Employee Mouse Movements, Keystrokes For AI Training Data (reuters.com) 44

Reuters reports that Meta plans to start collecting U.S.-based employees' mouse movements, clicks, keystrokes, and occasional screen snapshots to train AI agents that can better learn how humans use computers. The tool, called Model Capability Initiative (MCI), will reportedly "not be used for performance assessments or any other purpose besides model training and that safeguards were in place to protect 'sensitive content.'" From the report: Meta CTO Andrew Bosworth told employees in a separate memo shared on Monday that the company would step up internal data collection as part of those "AI for Work" efforts, now re-branded as Agent Transformation Accelerator (ATA). "The vision we are building towards is one where our agents primarily do the work and our role is to direct, review and help them improve," Bosworth said. The aim, he added, was for agents to "automatically see where we felt the need to intervene so they can be better next time." Bosworth did not explicitly spell out how those agents would be trained, but said Meta would be "rigorous" about "building up data and evals for all the types of interactions we have as we go about our work."

Meta spokesperson Andy Stone acknowledged that the MCI data would be among the inputs. [...] "If we're building agents to help people complete everyday tasks using computers, our models need real examples of how people "actually use them -- things like mouse movements, clicking buttons, and navigating dropdown menus," said Stone.

The Internet

Audit Finds Google, Microsoft, and Meta Still Tracking Users After Opt-Out (404media.co) 48

alternative_right shares a report from 404 Media: An independent privacy audit of Microsoft, Meta, and Google web traffic in California found that the companies may be violating state regulations and racking up billions in fines. According to the audit from privacy search engine webXray, 55 percent of the sites it checked set ad cookies in a user's browser even if they opted out of tracking. Each company disputed or took issue with the research, with Google saying it was based on a "fundamental misunderstanding" of how its product works.

The webXray California Privacy Audit viewed web traffic on more than 7,000 popular websites in California in the month of March and found that most tech companies ignore when a user asks to opt-out of cookie tracking. California has stringent and well defined privacy legislation thanks to its California Consumer Privacy Act (CCPA) which allows users to, among other things, opt out of the sale of their personal information. There's a system called Global Privacy Control (GPC), which includes a browser extension that indicates to a website when a user wants to opt out of tracking.

According to the webXray audit, Google failed to let users opt out 87 percent of the time. "Google's failure to honor the GPC opt-out signal is easy to find in network traffic. When a browser using GPC connects to Google's servers it encodes the opt-out signal by sending the code 'sec-gpc: 1.' This means Google should not return cookies," the audit said. "However, when Google's server responds to the network request with the opt-out it explicitly responds with a command to create an advertising cookie named IDE using the 'set-cookie' command. This non-compliance is easy to spot, hiding in plain sight."

The audit said that Microsoft fails to opt out users in the same way and has a failure rate of 50 percent in the web traffic webXray viewed. Meta's failure rate was 69 percent and a bit more comprehensive. "Meta instructs publishers to install the following tracking code on their websites. The code contains no check for globally standard opt-out signals -- it loads unconditionally, fires a tracking event, and sets a cookie regardless of the consumer's privacy preferences," the audit said. It showed a copy of Meta's tracking data which contains no GPC check at all.

Apple

Apple AI Glasses Will Rival Meta's With Several Styles, Oval Cameras (bloomberg.com) 56

Bloomberg's Mark Gurman reports that Apple is developing display-free AI smart glasses aimed at rivaling Meta's Ray-Bans, with multiple frame styles, a distinctive oval camera design, and tight iPhone integration. "The idea is to unveil the product at the end of 2026 or early the following year, with the actual release coming in 2027," writes Gurman. From the report: Like Meta's offering, Apple's glasses will be designed to handle everyday uses: capturing photos and videos, syncing with a smartphone for editing and sharing, handling phone calls, listening to notifications, playing music, and enabling hands-free interaction via a voice assistant. In Apple's case, that assistant will be a significantly upgraded Siri coming in iOS 27. The glasses are part of a broader, three-pronged AI wearables strategy that also includes new AirPods and a camera-equipped pendant. Each device is designed to leverage computer vision to interpret the user's surroundings and feed contextual awareness into Siri and Apple Intelligence. That will enable features like improved turn-by-turn map directions and visual reminders.

When Apple typically enters a new product category, it offers clear advantages over what's currently available. We saw this with the original iPod, iPhone, iPad and Apple Watch -- and, even though it was a flop, the Vision Pro. That approach won't be as obvious with Apple's upcoming foldable iPhone, but we should see it on full display with the glasses. According to employees working on the project, Apple's strategy is to outdo competitors by tightly integrating the glasses with the iPhone and offering a higher-end build. While Meta relies heavily on partner EssilorLuxottica SA for frames, Apple is unsurprisingly planning to go at it alone in terms of design. That also should set it apart from Alphabet Inc.'s Google and Samsung Electronics Co., which are leaning on Warby Parker.

Apple's design team has whipped up at least four different styles and plans to launch some or all of them, I'm told, as well as many color options. The latest units are made from a high-end material called acetate, which is known to be more durable and luxurious than the standard plastic used by many brands. Here are the designs in testing:
- A large rectangular frame, reminiscent of Ray-Ban Wayfarers
- A slimmer rectangular design, similar to the glasses worn by Apple Chief Executive Officer Tim Cook
- Larger oval or circular frames
- A smaller, more refined oval or circular option

Privacy

Meta Is Warned That Facial Recognition Glasses Will Arm Sexual Predators (wired.com) 90

An anonymous reader quotes a report from Wired: More than 70 civil liberties, domestic violence, reproductive rights, LGBTQ+, labor, and immigrant advocacy organizations are demanding that Meta abandon plans to deploy face recognition on its Ray-Ban and Oakley smart glasses, warning that the feature -- reportedly known inside the company as "Name Tag" -- would hand stalkers, abusers, and federal agents the ability to silently identify strangers in public. The coalition, which includes the ACLU, the Electronic Privacy Information Center, Fight for the Future, Access Now, and the Leadership Conference on Civil and Human Rights, is demanding Meta kill the feature before launch, after internal documents surfaced showing the company hoped to use the current "dynamic political environment" as cover for the rollout, betting that civil society groups would have their resources "focused on other concerns."

Name Tag, as revealed in February by The New York Times, would work through the artificial intelligence assistant built into Meta's smart glasses, allowing wearers to pull up information about people in their field of view. Engineers have reportedly been weighing two versions of the feature: one that would only identify people the wearer is already connected to on a Meta platform, and a broader version that could recognize anyone with a public account on a Meta service such as Instagram. The coalition wants Meta to scrap the feature entirely. In a letter to CEO Mark Zuckerberg on Monday, it argues that face recognition in inconspicuous consumer eyewear "cannot be resolved through product design changes, opt-out mechanisms, or incremental safeguards." Bystanders in public have no meaningful way to consent to being identified, it says.

Meta is also urged to disclose any known instances of its wearables being used in stalking, harassment, or domestic violence cases; disclose any past or ongoing discussions with federal law enforcement agencies, including Immigration and Customs Enforcement and Customs and Border Protection, about the use of Meta wearables or data from them; and commit to consulting civil society and independent privacy experts before integrating biometric identification into any consumer device. "People should be able to move through their daily lives without fear that stalkers, scammers, abusers, federal agents, and activists across the political spectrum are silently and invisibly verifying their identities and potentially matching their names to a wealth of readily available data about their habits, hobbies, relationships, health, and behaviors," write the groups, which also include Common Cause, Jane Doe Inc., UltraViolet, the National Organization for Women, the New York State Coalition Against Domestic Violence, the Library Freedom Project, and Old Dykes Against Billionaire Tech Bros, among others.

AI

Mark Zuckerberg Is Reportedly Building an AI Clone To Replace Him In Meetings 91

According to the Financial Times, Meta is developing an AI avatar of Mark Zuckerberg that could interact with employees using his voice, image, mannerisms, and public statements, "so that employees might feel more connected to the founder through interactions with it." The Verge reports: Meta may start allowing creators to make AI avatars of themselves if the experiment with Zuckerberg succeeds, according to the Financial Times. [...] Zuckerberg is involved in training the AI avatar, the Financial Times reports, and has also started spending five to 10 hours per week coding on Meta's other AI projects and participating in technical reviews.
Advertising

Meta Removes Ads For Social Media Addiction Litigation (axios.com) 46

Meta has started removing ads from law firms seeking clients for social media addiction lawsuits, just weeks after a jury found Meta and YouTube negligent in a landmark case involving harm to a young user. "Lawyers across the country now are seeking new plaintiffs, in the hopes of bringing a class action lawsuit that could result in lucrative verdicts," reports Axios. From the report: Axios has identified more than a dozen such ads that were deactivated today, some of which came from large national firms like Morgan & Morgan and Sokolove Law. Almost all of them ran on both Facebook and Instagram. Some also appeared on Threads and Messenger, plus Meta's Audience Network -- which distributes ads to thousands of third-party sites.

One such ad read: "Anxiety. Depression. Withdrawal. Self-harm. These aren't just teenage phases -- they're symptoms linked to social media addiction in children. Platforms knew this and kept targeting kids anyway." A few of the ads still remain active, including some that were posted earlier today.
"We're actively defending ourselves against these lawsuits and are removing ads that attempt to recruit plaintiffs for them," a Meta spokesperson said in a statement. "We will not allow trial lawyers to profit from our platforms while simultaneously claiming they are harmful."
Facebook

Meta Debuts 'Muse Spark', First AI Model Under Alexandr Wang (axios.com) 7

Meta has launched Muse Spark, its first major AI model under Alexandr Wang's leadership. The model was built over the past nine months and is being positioned as a significant step up from Llama 4. Axios reports: Muse Spark will power queries in the Meta AI app and Meta.ai website immediately, with plans to expand across Facebook, Instagram and WhatsApp. The model accepts voice, text and image inputs, but produces text-only output. [...] Meta plans to release a version of Muse Spark under an open-source license.

The model uses a fast mode for casual queries and several reasoning modes. A "shopping mode" highlights how Meta hopes to differentiate itself. It combines large language models with data on user interests and behavior. Over time, the model will also power "features that cite recommendations and content people share across Instagram, Facebook, and Threads," Meta said in a blog post.
Wang, the 29-year-old entrepreneur who co-founded Scale AI, joined Meta's "superintelligence" unit last year to help Meta catch up to rival models from OpenAI and Anthropic.
The Courts

Judge Allows BitTorrent Seeding Claims Against Meta, Despite Lawyers 'Lame Excuses' (torrentfreak.com) 9

An anonymous reader quotes a report from TorrentFreak: In an effort to gather material for its LLM training, Meta used BitTorrent to download pirated books from Anna's Archive and other shadow libraries. According to several authors, Meta facilitated the infringement of others by "seeding" these torrents. This week, the court granted the authors permission to add these claims to their complaint, despite openly scolding their counsel for "lame excuses" and "Meta bashing." [...] The judge acknowledged that the contributory infringement claim could and should have been added back in November 2024, when the authors amended their complaint to include the distribution claim. After all, both claims arise from the same factual allegations about Meta's torrenting activity.

"The lawyers for the named plaintiffs have no excuse for neglecting to add a contributory infringement claim based on these allegations back in November 2024," Judge Chhabria wrote. The lawyers of the book authors claimed that the delay was the result of newly produced evidence that had "crystallized" their understanding of Meta's uploading activity. However, that did not impress the judge. He called it a "lame excuse" and "a bunch of doubletalk," noting that if the missing discovery truly prevented the contributory claim from being added in November 2024, the same logic would have prevented the distribution claim from being added at that time as well. "Rather than blaming Meta for producing discovery late, the plaintiffs' lawyers should have been candid with the Court, explaining that they missed an issue in a case of first impression..," the order reads.

Judge Chhabria went further, noting that the authors' law firm, Boies Schiller, showed "an ongoing pattern" of distracting from its own mistakes by attacking Meta. He pointed specifically to the dispute over when Meta disclosed its fair use defense to the distribution claim, which we covered here recently, characterizing it as a false distraction. "The lawyers for the plaintiffs seem so intent on bashing Meta that they are unable to exercise proper judgment about how to represent the interests of their clients and the proposed class members," the order reads. Despite the criticism, Chhabria granted the motion. [...] For now, the case moves forward with a fourth amended complaint, three new loan-out companies added as named plaintiffs, and a growing list of BitTorrent-related claims for Judge Chhabria to resolve.

Social Networks

Meta and YouTube Found Negligent in Landmark Social Media Addiction Case 113

A jury found Meta and YouTube negligent in a landmark social media addiction case, ruling that addictive design features such as infinite scroll and algorithmic recommendations harmed a young user and contributed to her mental health distress. The verdict awards $3 million in compensatory damages so far and could pave the way for more lawsuits seeking financial penalties and product changes across the social media industry. "Meta is responsible for 70 percent of that cost and YouTube for the remainder," notes The New York Times. "TikTok and Snap both settled with the plaintiff for undisclosed terms before the trial started." From the report: The bellwether case, which was brought by a now 20-year-old woman identified as K.G.M., had accused social media companies of creating products as addictive as cigarettes or digital casinos. K.G.M. sued Meta, which owns Instagram and Facebook, and Google's YouTube over features like infinite scroll and algorithmic recommendations that she claimed led to anxiety and depression.

The jury of seven women and five men will deliberate further to decide what further punitive damages the companies should pay for malice or fraud. The verdict in K.G.M.'s case -- one of thousands of lawsuits filed by teenagers, school districts and state attorneys general against Meta, YouTube, TikTok and Snap, which owns Snapchat -- was a major win for the plaintiffs. The finding validates a novel legal theory that social media sites or apps can cause personal injury. It is likely to factor into similar cases expected to go to trial this year, which could expose the internet giants to further financial damages and force changes to their products.
The verdict also comes on the heels of a New Mexico jury ruling that found Meta liable for violating state law by failing to protect users of its apps from child predators.

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