
The introduction of an electronic challenge system in baseball is revealing which umpires do their jobs well – and which badly. CC-licensed photo by Peter Miller on Flickr.
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A selection of 9 links for you. Struck out. I’m @charlesarthur on Twitter. On Threads: charles_arthur. On Mastodon: https://newsie.social/@charlesarthur. On Bluesky: @charlesarthur.bsky.social. Observations and links welcome.
I did the math on Sora. AI video is a money furnace • Aedelon Press
Delanoe Pirard:
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If you run a restaurant, and each plate costs you $65 to make but you charge $20, you don’t have a marketing problem. You don’t have a chef problem. You have a physics problem. No amount of buzz, no celebrity endorsement, no billion-dollar partnership changes the arithmetic. Every new customer accelerates your bankruptcy.
That’s Sora.
…I’ve been tracking the inference economics of generative AI for a while now. Sora is the first case where the numbers are so clean, so unambiguous, that there’s almost nothing to debate. This is a story about economic physics. And every other AI video startup is subject to the same physics.
Here’s what I found.
TL;DR:
• $15m/day in peak compute costs (analyst estimate) vs. $2.1m total lifetime revenue. Even the conservative estimate (~$1m/day) makes the math catastrophic. (Forbes, Appfigures via VentureBeat)
• 1% day-30 retention vs. TikTok’s 32%. Users generated videos, watched them once, and never came back. (Olivia Moore, a16z)
• 160x cost ratio: generating a 10-second AI video costs roughly 160 times more than generating an equivalent amount of text. This is structural. (Derived from Cantor Fitzgerald and OpenAI API pricing)
• Disney learned about the shutdown less than one hour before you did. A $1bn deal, never finalized, killed by a phone call. (WSJ via Slate)
• No AI video company has proven net profitability. Not Runway (-$155m EBITDA). Not Pika ($7.6m revenue on $80m raised). Kling’s $240m ARR is the closest, and even they haven’t published profit data.The real question isn’t why Sora failed. It’s whether AI video at consumer prices is structurally impossible in 2026.
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The fabulous irony, as Pirard points out, is that the incredibly low retention rate for Sora saved OpenAI a ton of money. If it had really been a huge hit, it would have burnt through millions in no time at all. This is a great read on why AI video is, indeed, a money furnace.
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OpenAI buys streaming show “TBPN”, aiming to change narrative on AI • The New York Times
Mike Isaac:
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For the past 18 months, every chief executive in Silicon Valley has clawed at the door to talk to “TBPN,” a streaming show focused on technology and business. They have embraced the “TBPN” hosts, John Coogan and Jordi Hays, who often speak optimistically about technology on their show, which airs online three hours a day, five days a week.
Now, a leading artificial intelligence startup is giving the show a full-on bear hug. On Thursday, OpenAI said it had bought “TBPN” for an undisclosed amount and would continue to support it as the show promoted the business of technology and media.
“One thing that’s become clear is that the standard communications playbook just doesn’t apply to us,” Fidji Simo, a top OpenAI executive, said in an internal memo to employees about the deal. She added that buying “TBPN” would help OpenAI “create a space for a real, constructive conversation about the changes AI creates — with builders and people using the technology at the center.”
“TBPN,” which employs 11 people, said it would remain editorially independent and continue running its daily show but would wind down its advertising operations. The company had not raised a major amount of venture capital. OpenAI and “TBPN” declined to disclose the terms of the deal.
The Wall Street Journal earlier reported the deal. (The New York Times sued OpenAI and Microsoft in 2023 for copyright infringement of news content related to AI systems. The two companies have denied those claims.)
…“TBPN,” which aired its first episode in October 2024, gained traction among techies because it bucked that [AI negativity] discourse. Mr. Coogan and Mr. Hays, both former start-up founders, have professed their love of capitalism, building businesses and watching technology companies reshape the world.
Mr. Altman also invested in Mr. Coogan’s first company, the nutritional supplement drink Soylent, more than a decade ago.
Dylan Abruscato, the president of “TBPN,” said in an interview that the show had ambitions to expand, which would be easier to do with OpenAI’s support and funding. “TBPN” will sit in OpenAI’s strategy division and report to Chris Lehane, the chief global affairs officer.
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The duo put a clause in the purchase contract that OpenAI will have no control over the TBPN content. Though one has to wonder how eager they’d be to offer negative opinions about their paymasters. (Will they ask about Sora’s economics?) Then again, such schemes generally run into the ground. Andreessen Horowitz tried the same in 2021, with no lasting effect.
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MLB’s ABS Challenge System is exposing the worst umpire in baseball • The Verge
Terrence O’Brien:
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During Wednesday’s game between the Tampa Bay Rays and the Milwaukee Brewers, umpire CB Bucknor took a foul ball to the mask and had to be helped off the field. It was the cap to what has been a particularly bad week for one of the most controversial umpires in baseball.
It started with perhaps the best example of how MLB’s Automated Ball-Strike (ABS) Challenge System can inject drama in baseball. This is the first year for the new robot umpire, which allows hitters, catchers, and pitchers to challenge balls and strikes for the first time. Each team starts a game with two challenges. But they only lose a challenge if it’s unsuccessful, so players aren’t inclined to demand a review unless they’re sure.
During Saturday’s game between the Red Sox and the Reds, Eugenio Suarez challenged Bucknor on back-to-back strike three calls and successfully had them overturned by the robo ump.
It doesn’t matter that Suarez ultimately grounded out. What matters is that, in a game where the Reds hit two home runs, the loudest cheers came for a pair of successful ABS challenges.
This was far from the only time that Bucknor had his calls overturned at the plate, it was a bad night for him overall. There were eight ABS challenges over the course of the game, and six of them were successful. The two calls that were not overturned were extremely close, within 0.1 inch of the strike zone edge. His misses, however, were more dramatic. Three pitches he called strikes missed by 2.4 inches or more — one was a full 2.7 inches out of the zone. And, by Jomboy Media’s judgment, Bucknor blew 20 calls if you count ones that weren’t challenged.
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So Americans have now got their own version of VAR – or perhaps it’s more like the line call challenges of the past in tennis, where each player got three per set; now it’s all electronic. This is the model that VAR in football should follow, and it’s madness that hasn’t been used and responsibility is instead given to the referees.
The fact that bad umpiring is being found out by this system is unsurprising. The next effect isn’t hard to predict: umpires will get better at their job, just as happened with tennis line calling after the introduction of challenges.
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A brief history of instant coffee • Works in Progress Magazine
Benjamin Stubbing & Oscar Sykes:
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The convenience of instant coffee masks a surprisingly difficult problem. Coffee’s appeal lies in the hundreds of volatile compounds that create its flavor and aroma, exactly the substances most likely to disappear during processing. Creating instant coffee required developing techniques to extract the soluble molecules in coffee from the insoluble plant matter without destroying the fragile compounds that make coffee worth drinking.
The first attempt at the drink was, by all accounts, terrible. In 1771, over two centuries after coffee reached Europe, Londoner John Dring filed a patent for a ‘coffee compound’. Dring’s method involved mixing ground coffee with butter and tallow, then heating the mixture on an iron plate until it thickened into a paste that could be shaped into cakes. These cakes were then dissolved in hot water to make coffee. The purpose of the animal fats isn’t entirely clear. They may have been intended to extract and carry soluble compounds from the coffee grounds or to preserve the ground coffee from oxidation. Whatever Dring’s aim, the method wasn’t commercially viable because the fats went rancid, causing the cakes to spoil quickly.
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It’s worth pausing before reading the story (which is, as with WiP stuff, excellent) and asking yourself: in what year do you think they made an instant coffee powder that actually lived up to the name?
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NASA sends Outlook around Moon, immediately needs IT help • The Register
Richard Speed:
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Many a frustrated user has sworn they’ll launch Microsoft Outlook into space, but NASA has actually done it – on a journey around the Moon, where it’s now causing problems for astronauts.
The astronauts aboard the Orion spacecraft while it was circling the Earth were taking care of a bunch of housekeeping tasks, including getting their devices working. Judging by some space-to-ground communications with controllers at Houston, it didn’t go well.
NASA has helpfully provided a YouTube channel showing live views from the Orion spacecraft, as well as snippets of communication. During this stream, one of the astronauts could be heard first asking for help with network connectivity (IT support staff will be delighted to know that one troubleshooting step involves turning the device off and on) before telling controllers, “I have two Microsoft Outlooks, and neither one of those are working.”
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In space nobody can reboot your screen?
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FBI declares suspected Chinese hack of US surveillance system a “major cyber incident” • POLITICO
John Sakellariadis:
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The FBI last week deemed a recent China-linked cyber intrusion into a sensitive agency surveillance system a “major incident,” meaning it poses significant risks to US national security, according to one congressional aide and two U.S. officials with knowledge of the matter.
The bureau first told Congress on March 4 that it was investigating suspicious activity on an internal agency system that contained “law enforcement sensitive information.” The FBI did not publicly identify who was behind the activity at the time, but POLITICO previously reported that China is suspected.
The FBI determined the intrusion meets the definition of a major incident under a federal data security statute known as FISMA, said the three people. Congress was informed of the decision earlier this week, according to the aide. This person, like others in this report, was granted anonymity because they were not authorised to speak publicly on the investigation.
The determination suggests the hackers successfully compromised swathes of sensitive data stored directly on FBI systems, likely marking a major counterintelligence coup for China. FISMA requires agencies to tell lawmakers within seven days about any digital intrusion it has determined is “likely to result in demonstrable harm” to US national security.
Cynthia Kaiser, the former deputy assistant director of the FBI’s cyber division, said she is not aware of the FBI making any such determination on a hack affecting its own systems since at least 2020.
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Kash Patel is really showing his mettle and leadership here. (Minor subbing note: in the original story, “U.S.” has full stops for abbreviation but “FBI” does not. Why not? Both are abbreviations.)
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Marmite maker Unilever agrees $44.8bn deal to combine food arm with McCormick • The Guardian
Mark Sweney and Sarah Butler:
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Unilever has agreed to combine its food business with US-based McCormick in a $44.8bn deal that will give the Marmite-to-Hellmann’s mayonnaise owner majority control of a food empire.
The Anglo-Dutch company will control 65% of the new spin-off, which will combine brands such as Knorr and Pot Noodle with McCormick’s condiments and spices including French’s mustard, Old Bay seasoning and Cholula hot sauce.
However, the combined company will be called McCormick and led by its executives, with senior management representation from the ranks of Unilever’s food business.
Under the agreement, McCormick will pay London-listed Unilever $15.7bn in cash and the equivalent of $29.1bn in shares for a stake in almost all of the Anglo-Dutch company’s food arm.
After the combination, which is forecast to result in $600m (£453m) of annual cost savings by the end of the third year, McCormick will retain its global headquarters in the US and New York stock exchange listing, with an international headquarters at the existing Unilever Foods base in the Netherlands.
Unilever’s food business employs research, development and marketing staff in the UK and has factories making Pot Noodle in Crumlin, Wales, and Hellmann’s, Marmite and Colman’s mustard in Burton-on-Trent.
The companies said savings would come from changes in manufacturing, distribution and on procurement of supplies but said they were yet to confirm how many jobs might be affected and where.
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So the owner of the iconically British Marmite brand is going to be part-owned by an American company. Some people are going to love this. Some are going to hate it, particularly if it leads to any chances in Marmite’s manufacturing.
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WSJ subscriptions success “not luck” says editor Emma Tucker • Press Gazette
Charlotte Tobitt:
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Changes introduced by Emma Tucker, the WSJ editor] have included reshaping the investigations team so it could focus more on quicker investigations with news hooks.
Tucker said “that didn’t mean we were abandoning doing investigations that require time and effort” but that previously the team was not set up to jump on to short and medium-term investigations.
Examples of this have included a visual investigation of the fatal shooting of Alex Pretti by federal agents amid immigration raids in Minnesota in January and reporting on what was going on behind the scenes at the Department of Homeland Security led by Kristi Noem.
Tucker said: “She was the first head to roll in Trump Two and we set that reporting in motion.”
Tucker said she has broken down barriers in the newsroom to ensure its “expertise is best leveraged”. Live blogs have been revamped both in terms of making the product experience “much more intuitive” and in the news updates themselves. “We think really hard about how we update it so we’re there, we’re timely, but we’re trying to give real added value with the blog posts that we do. They have been driving an incredible amount of traffic, but also engagement,” Tucker said.
The WSJ is doing more “re-versioning” of well-read stories into other formats such as video, reader Q&As or “takeaways” (bite-sized explanations of WSJ reporting).
…“No one likes change. People hate change. But you have to explain why it’s necessary, and keep explaining it, and keep messaging and then showing the results and trying to create a more positive feedback loop.”
Using the right data was also “critical” to the culture change, Tucker said, in a “very targeted way that was easy for the newsroom to understand, but which enabled the newsroom to orient around key metrics”.
The data dashboard now on display to the newsroom emphasises two metrics: subscriber interest (the number of subscriber uniques) and subscriber engaged time.
“If subscribers are interested and they’re sticking around, then we’re doing something right,” Tucker said.
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This makes an interesting contrast with the next story, which is also about a well-known news brand and its efforts to adapt to the modern world.
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Wired ends UK print magazine amid shake-up of London staff • Press Gazette
Charlotte Tobitt:
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Wired will not put out a print magazine in the UK in 2026 as it focuses on global digital subscriber growth.
Seven editorial staff left Wired’s London office at the end of 2025, with the team being rebuilt to focus on audience development roles and some UK and Europe-focused reporting. Global editorial director Katie Drummond told Press Gazette that creating a “sustainable and growing subscription business is the future of Wired. “While other components like advertising and commerce play a really important part, I don’t want Wired to be at the whims of anything that I can’t control the way I can control the journalism.”
A spokesperson said direct-to-publisher subscribers (meaning those who subscribe through Wired rather than a third party) were up 20% in 2025 while new subscribers taking the digital-only option doubled. Wired’s US subscription revenue was up 24% in 2025.
Drummond told Press Gazette that London remains “of paramount importance” to the global editorial operation (which comprises around 120 people, with plans to increase that by at least 10% in 2026). She said: “We made some strategic changes at the end of last year going into this year to better orient this newsroom around what we were doing with Wired globally, and to really think of the London office as a hub for key roles.
“So all of our audience development leadership, for example, is based out of London, because we want to be starting the day strategically with newsletters, social, vertical video – what are we doing across all of these functions? Those decisions should be made and executed on first thing.”
Seven London-based Wired journalists left the business at the end of 2025 including Greg Williams, deputy global editorial director and UK editor-in-chief. Other roles affected included managing editor, global design director, associate editor, science editor, features editor and senior business editor.
…In the UK and Ireland in 2024, the latest available ABC figures, Wired published six issues with an average circulation of 32,404. Of these, 10,080 were individual subscriptions, 10,302 were free distributed copies, 4,838 were single newsstand sales, and 7,399 were via ‘all you can read’ users of services like Apple News+.
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I make that three times that Wired UK has ceased printing since 1995. The set of people let go sounds basically like “all the people you’d need to run a science or technology magazine”.
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| • Why do social networks drive us a little mad? • Why does angry content seem to dominate what we see? • How much of a role do algorithms play in affecting what we see and do online? • What can we do about it? • Did Facebook have any inkling of what was coming in Myanmar in 2016? Read Social Warming, my latest book, and find answers – and more. |
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