The fast food chain Wendy’s told analysts it was going to try out surge pricing – and then backtracked following social media reaction. CC-licensed photo by Mike Mozart on Flickr.
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A selection of 10 links for you. For the right price. I’m @charlesarthur on Twitter. On Threads: charles_arthur. On Mastodon: https://newsie.social/@charlesarthur. Observations and links welcome.
Apple cancels its electric car project • NPR
Bobby Allyn:
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Apple has ended its secret plans of building a self-driving electric car, a decade-long effort that was seen as one of the most ambitious undertakings in the company’s history.
Apple executives on Tuesday informed teams working on the tech giant’s vehicle, called Project Titan internally, that hundreds of employees who worked on the car will be shifted to divisions working on artificial intelligence, according to multiple reports.
The push at Apple to build an autonomous vehicle is estimated to have cost the company billions of dollars, with around 2,000 employees working on the endeavor.
While some Apple employees are being moved to work on AI products, many others are expected to be laid off, though the exact number of workers affected remains unclear.
…The prospect of Apple, one of richest companies in the world, releasing an Apple-branded car had the potential to transform the auto industry and was being closely watched by auto executives and Apple diehards alike.
Despite the anticipation, analysts said Apple was still many years away from ever releasing its own car. Engineers at the company have for years been testing Apple car technology on public roads.
At one point, Apple was attempting to build a car without a steering wheel or pedals. But it abandoned the idea, since it was not possible with current technology, Bloomberg reported in late 2022.
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So now it’s going to be broken up for parts – John Gruber suggests, and I think he’s right, that when Kevin Lynch (who’s in charge of the Apple Watch) took over the project in late 2021 it was to figure out which its could be reused elsewhere. The project’s been dying a long time.
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Sam Bankman-Fried asks court to reduce prison time to six years in fraud conviction • Coindesk
Amitoj Singh and Nikhilesh De:
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Former FTX boss Sam Bankman-Fried (SBF), found guilty of fraud last year and due to be sentenced next month, has asked the court for a “just” sentence of 63 to 78 months, according to a court filing submitted Tuesday.
Bankman-Fried’s lawyers objected to the Presentence Investigation Report (PSR), which recommends a sentence of 100 years in prison, calling it “grotesque.” Bankman-Fried was convicted on seven charges of fraud and conspiracy last November after a month-long trial probing the 2022 collapse of FTX.
“Sam is a 31-year-old, first-time, non-violent offender, who was joined in the conduct at issue by at least four other culpable individuals, in a matter where victims are poised to recover—were always poised to recover—a hundred cents on the dollar,” said the filing, which was signed by Bankman-Fried’s new attorneys Marc Mukasey and Torrey Young.
The lawyers argue that “an appropriate method of arriving at a just sentence” would be to consider an adjusted offense level based on “zero loss,” which would lead to “an advisory Guidelines range of 63-78 months.” The filing heavily draws on how “the harm to customers, lenders, and investors is zero” because the FTX bankruptcy estate has stated it expects to fully repay its customers.
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I wasn’t aware that FTX had magically found all the billions that it funnelled away. Anyway, nice to get a low bid in, Mr SBF.
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Why electric bikes actually give more exercise than pedal bikes • Electrek
Micah Toll:
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Believe it or not, electric bikes offer more exercise than pedal bikes on average. That fact might sound strange (and has been known to let the steam out of some fitness riders’ lycra outfits), but the science is clear. Now let’s talk about the “how” and “why”.
Study after study has shown that people who ride e-bikes get more exercise than those who ride pedal bikes. That finding grinds the gears of traditional cyclists who seem to hold an “us vs them” attitude in cycling, but it’s a result that has been repeatedly demonstrated across many different countries and cultures.
When you actually break down the reasons for that surprising finding though, it actually makes a lot of sense.
Electric bikes, which include a motor and battery to assist the rider, tend to rack up more miles.
On average, studies have found that e-bike riders typically ride for longer periods of time than pedal bike riders. Not only do they log more hours, but they log a lot more miles, too. Even though they’re getting some pedal assist, they’re still doing a lot of pedaling – and in fact a lot more.A major contributing factor comes down to the fact that the electric motor takes some of the pain out of the harder parts of cycling, namely hill climbs and tough starts.
Researchers have discovered that when riders find it less grueling, they tend to go on longer rides. A 2019 study of over 10,000 adults across seven countries found that the Metabolic Equivalent Task minutes per week was measurably higher for electric bike riders than for pedal bike riders.
Another reason for those longer rides comes down to the perceived enjoyment of e-bikes over pedal bikes. Researchers have consistently found that e-bike riders tend to report that riding an electric bike is more enjoyable. When the activity is more fun, it leads to more time spent participating in the activity.
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This is very counterintuitive (to me). It also suggests that there must be a perfect balance of “help” from the electric part against the mechanical work the human has to put in; at one end, no help, at the other, no pedalling. Where’s the sweet spot?
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The economics of skiing in America • The Economist
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In basic economic theory, excessive market power reduces the efficiency of an industry. Firms reduce output so as to be able to charge more. There is, however, an exception: if a monopolistic firm can charge different prices to different customers, it need not reduce output to increase its profit.
The skiing industry shows the truth of this. As the industry has consolidated, daily prices have soared, extracting more cash from price-insensitive skiers. But if you buy a season pass early, or one or your friends does, you can get a ticket for a lot less, and so the slopes are still busy. Last year 65m people visited American resorts, the largest number ever, according to the National Ski Areas Association, an industry group. Vail’s revenue increased by 14%. Season passes now make up 61% of the firm’s lift-ticket revenue.
Yet the transformation is not entirely popular. As the number of people with passes grew, “locals started losing their shit at all of these people coming into town,” says Mr Winchester. On a t-Bar drag lift at Breckenridge [in Colorado], Vince, a paramedic who has been skiing there since the 1980s, says that Vail “is the evil empire”. With far more people skiing, the lift queues have grown, especially on the best snow days. A skiing culture that catered to locals has changed into a mass business. Real estate has soared in value—and with it property taxes. Vince says he had to sell his house and move farther away. Getting back to ski is tougher. Traffic jams snake up the mountain, and parking is no longer free.
Vail may soon hit the limits of its ability to squeeze more skiers onto the slopes. Although lift passes can be had cheaply, the cost of accommodation has soared. Last year the firm raised its minimum wage to $20 per hour, but staff shortages remain a problem—in towns where houses now cost millions, that doesn’t go very far. On the biggest days, the firm has had to resort to rationing—limiting the number of lift tickets available, and drastically raising the cost of things like parking, so as to stop the crowds.
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Meanwhile in Europe a number of the lower-lying ski resorts this year have simply been unable to offer skiing: it’s been too warm even for the artificial snow-makers. The Vail monopoly might soon have to reckon with the climate.
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China’s EVs are going to hit Detroit like a wrecking ball • The New York Times
Robinson Meyer:
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It happened very quickly, so fast that you might not have noticed it. Over the past few months, America’s Big Three automakers — Ford, General Motors and Stellantis, the oddly named company that owns Dodge, Chrysler and Jeep — landed in big trouble.
I realize this may sound silly. Ford, General Motors and Stellantis made billions in profit last year, even after a long strike by autoworkers, and all three companies are forecasting a big 2024. But recently, the Big Three found themselves outmaneuvered and missing their goals for electric vehicle sales at the same time that a crop of new affordable, electrified foreign cars appeared, ready to flood the global market.
About a decade ago, America bailed out the Big Three and swore it wouldn’t do that again. But the federal government is going to have to help the Big Three and the rest of the U.S. car market again very soon. And it has to do it in the right way — now — to avoid the next auto bailout.
The biggest threat to the Big Three comes from a new crop of Chinese automakers, especially BYD, which specialize in producing plug-in hybrid and fully electric vehicles. BYD’s growth is astounding: It sold three million electrified vehicles last year, more than any other company, and it now has enough production capacity in China to manufacture four million cars a year. But that isn’t enough: It’s building factories in Brazil, Thailand, Hungary and Uzbekistan, to produce even more cars, and it may soon add Indonesia and Mexico to that list. A deluge of electric vehicles is coming.
BYD’s cars deliver great value at prices that beat anything coming out of the West. This month BYD unveiled a plug-in hybrid that gets decent all-electric range and will retail for just over $11,000. How can it do that? Like other Chinese manufacturers, BYD benefits from its home country’s lower labor costs, but this explains only some of its success. The fact is that BYD and other Chinese automakers like Geely, which owns Volvo Cars and Polestar brands, are very good at making cars.
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There’s a narrative that EV sales are slowing and that people don’t see the point in them. But the fact is they’re very cheap to run: almost zero maintenance and electricity isn’t expensive.
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OpenAI accuses NYT of hacking ChatGPT to set up copyright suit • Ars Technica
Ashley Belanger:
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In a court filing Monday, OpenAI alleged that “100 examples in which some version of OpenAI’s GPT-4 model supposedly generated several paragraphs of Times content as outputs in response to user prompts” do not reflect how normal people use ChatGPT.
Instead, it allegedly took The Times “tens of thousands of attempts to generate” these supposedly “highly anomalous results” by “targeting and exploiting a bug” that OpenAI claims it is now “committed to addressing.”
According to OpenAI this activity amounts to “contrived attacks” by a “hired gun”—who allegedly hacked OpenAI models until they hallucinated fake NYT content or regurgitated training data to replicate NYT articles. NYT allegedly paid for these “attacks” to gather evidence to support The Times’ claims that OpenAI’s products imperil its journalism by allegedly regurgitating reporting and stealing The Times’ audiences.
“Contrary to the allegations in the complaint, however, ChatGPT is not in any way a substitute for a subscription to The New York Times,” OpenAI argued in a motion that seeks to dismiss the majority of The Times’ claims. “In the real world, people do not use ChatGPT or any other OpenAI product for that purpose. Nor could they. In the ordinary course, one cannot use ChatGPT to serve up Times articles at will.”
In the filing, OpenAI described The Times as enthusiastically reporting on its chatbot developments for years without raising any concerns about copyright infringement. OpenAI claimed that it disclosed that The Times’ articles were used to train its AI models in 2020, but The Times only cared after ChatGPT’s popularity exploded after its debut in 2022.
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Worst of friends, or possibly best of enemies, until they get around to settling out of court. (My prediction.)
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Wendy’s hints at possible ‘surge-pricing’ menu, then backtracks • The Hill
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Earlier this week, widespread media reports relayed that fast food giant Wendy’s may adopt a “surge-pricing” model similar to that of ride-sharing companies, based on hints during an earnings call last week. That announcement was met with widespread criticism on social media. On February 27, Wendy’s released a new statement saying they would not raise prices dynamically.
During a Feb. 15 investor call, CEO Kirk Tanner said the company plans to spend about $20m to roll out digital menu boards to all restaurants by the end of 2025. “We will begin testing more enhanced features like dynamic pricing and daypart offering, along with AI-enabled menu changes and suggestive selling,” Tanner said in the earnings call.
But in the Feb. 27 statement, Wendy’s said: “We said these menuboards would give us more flexibility to change the display of featured items. This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants. We have no plans to do that and would not raise prices when our customers are visiting us most.”
Wendy’s added, “Any features we may test in the future would be designed to benefit our customers and restaurant crew members.
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So yes, Wendy’s was actually planning to introduce dynamic pricing, ran into an absolute media storm, and hit ^W^W^W^W.
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How a small Iowa newspaper’s website became an AI-generated clickbait factory • WIRED
Condé Nast:
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In his spare time, Tony Eastin likes to dabble in the stock market. One day last year, he Googled a pharmaceutical company that seemed like a promising investment. One of the first search results Google served up on its news tab was listed as coming from the Clayton County Register, a newspaper in northeastern Iowa. He clicked, and read. The story was garbled and devoid of useful information—and so were all the other finance-themed posts filling the site, which had absolutely nothing to do with northeastern Iowa. “I knew right away there was something off,” he says. There’s plenty of junk on the internet, but this struck Eastin as strange: Why would a small Midwestern paper churn out crappy blog posts about retail investing?
Eastin was primed to find online mysteries irresistible. After years in the US Air Force working on psychological warfare campaigns he had joined Meta, where he investigated nastiness ranging from child abuse to political influence operations. Now he was between jobs, and welcomed a new mission. So Eastin reached out to Sandeep Abraham, a friend and former Meta colleague who previously worked in Army intelligence and for the National Security Agency, and suggested they start digging.
What the pair uncovered provides a snapshot of how generative AI is enabling deceptive new online business models. Networks of websites crammed with AI-generated clickbait are being built by preying on the reputations of established media outlets and brands. These outlets prosper by confusing and misleading audiences and advertisers alike, “domain squatting” on URLs that once belonged to more reputable organizations. The scuzzy site Eastin was referred to no longer belonged to the newspaper whose name it still traded in the name of.
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There’s a telling quote from Emerson Brooking, at the Atlantic Council’s Digital Forensic Research Lab: “This report feels like it is an accurate snapshot of how AI is actually changing our society so far—making everything a little bit more annoying.”
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Google CEO Sundar Pichai calls AI tool’s responses ‘completely unacceptable’ • Semafor
Reed Albergotti got hold of the memo that Pichai sent out to all staff, and it begins like this:
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I want to address the recent issues with problematic text and image responses in the Gemini app (formerly Bard). I know that some of its responses have offended our users and shown bias – to be clear, that’s completely unacceptable and we got it wrong.
Our teams have been working around the clock to address these issues. We’re already seeing a substantial improvement on a wide range of prompts. No AI is perfect, especially at this emerging stage of the industry’s development, but we know the bar is high for us and we will keep at it for however long it takes. And we’ll review what happened and make sure we fix it at scale.
Our mission to organize the world’s information and make it universally accessible and useful is sacrosanct. We’ve always sought to give users helpful, accurate, and unbiased information in our products. That’s why people trust them. This has to be our approach for all our products, including our emerging AI products.
We’ll be driving a clear set of actions, including structural changes, updated product guidelines, improved launch processes, robust evals and red-teaming, and technical recommendations. We are looking across all of this and will make the necessary changes.
Even as we learn from what went wrong here, we should also build on the product and technical announcements we’ve made in AI over the last several weeks.
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Somehow this reminds me of Rishi Sunak floundering as he tries to come up with a form of words to excuse one of his MPs’ wilder spoutings. The memo doesn’t get to the heart of the problem, which is that even though loads of people tried this out, none of them stuck their hand up and said it was wrong. Google’s internal culture has withered if such a high-profile product can get through QA with such obvious problems. And that says bad things about all the other Google products, existing and future.
Pichai might need to face the awful truth: the CEO sets the culture.
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Lapse, the app turning your phone into an old-school camera, snaps up $30m • TechCrunch
Ingrid Lunden:
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It can cost a fortune in 2024 to find an analogue camera, buy film (and maybe special batteries) for it and take pictures that then need to be paid for to be developed. Yet the experience had a charm and a simplicity to it. For those longing for those old days, a startup called Lapse has been giving smartphone users an alternative — you take pictures that you have to wait to see “developed,” with no chance of editing and retaking, before sharing them with a select group of friends if you choose.
Lapse has been been gaining some traction in the market — claiming millions of users, 100 million photos captured each month and a coveted, consistent top-10 ranking in the U.S. app store for photographic apps. Now it’s announcing a new round of funding of $30m to take its ambitions to the next level.
Greylock — the storied consumer app investor that was an early backer of Facebook, Instagram, TikTok (when it was Musical.ly) and LinkedIn — co-led the round with the equally iconic DST Global Partners. Previous backers GV, Octopus Ventures and Speedinvest also participated. Following on from a previous $12.4m raised in seed and pre-seed funding back in 2021, this brings the total to just over $42m and a valuation of around $150m, according to sources.
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Oh well, that’s $40m or so that they won’t see back. But the principle, of “slow things that are make you consider what you’re doing”, fits in with vinyl records and the “music restricted to floppy disks” story yesterday.
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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. |
Errata, corrigenda and ai no corrida: none notified