Tag Archives: Finance

The UK approves Google’s $2 billion investment in Anthropic

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The UK’s competition regulator has cleared Google's $2 billion investment in Anthropic, according to reporting by Bloomberg and others. The Competition and Markets Authority (CMA) has officially concluded that the company hasn’t acquired “material influence” over the AI startup Anthropic as a result of the investment.

The continuing investigation into the partnership has also been squashed, with the UK antitrust watchdog saying that the investment doesn’t qualify for a full probe under merger rules. This is after phase one of a formal investigation was announced back in October.

“Anthropic is an independent company and our strategic partnerships and investor relationships do not diminish our corporate governance independence or our freedom to partner with others,” a company spokesperson said after the CMA announced its findings.

Google’s investment into Anthropic gives the company non-voting shares and consultation rights on significant business issues. Anthropic is best known for creating the Claude AI assistant, which is in direct competition with Google Gemini. Earlier this year, the CMA expressed concern regarding the “interconnected web” of partnerships and investments in the rapidly advancing world of AI.

The CMA also allowed a similar investment to go through in which Amazon forked over a whopping $4 billion to Anthropic. It didn’t even investigate that one, on the grounds that Anthropic’s UK turnover didn’t exceed £70 million and the two parties didn’t combine to account for 25 percent or more of the region’s supply of AI LLMs and chatbots.

Microsoft’s investment into OpenAI, however, is still under scrutiny by the CMA. The watchdog group did clear Microsoft’s investments with the AI startups Mistral and Inflection.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/the-uk-approves-googles-2-billion-investment-in-anthropic-162226536.html?src=rss

AMD lays off 4 percent of its global workforce

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AMD has confirmed it’s laying off roughly four percent of its global workforce, according to reports by TechCrunch and others. It’s not entirely clear how many people will be impacted by this move, or which divisions the laid off employees will be pulled from.

We can, however, do some math. The company had around 26,000 employees last year, according to an annual filing by AMD. Four percent of 26,000 comes out to just over 1,000 people. That’s a lot.

So that leads us to why. You already know the answer. It’s a bunch of corporate gobbledygook. “As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps,” an AMD spokesperson told CRN.

Don’t worry. The company also said it’s “committed to treating impacted employees with respect and helping them through this transition.” Engadget reached out to AMD for more information as to what that respect and help will look like. We’ll update this story if we find out anything.

This news comes after a fairly mixed Q3 earnings report. The company grew revenue and profit, but the gaming division saw a massive year-over-year decline of 69 percent, according to Wccftech. The company has also struggled to compete with NVIDIA in the world of AI chips.

Experts still predict that AMD will make nearly $33 billion in 2025, thanks to forthcoming next-gen GPUs. This isn’t enough for investors, however, as it’s “just” an increase of around $7 billion when compared to 2024. The company’s stock is down around four percent this year, and dropped further today. Capitalism demands massive and endless growth.

Rival (and occasional bestie) Intel has faced similar headwinds. The company announced over 15,000 layoffs earlier this year.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/amd-lays-off-4-percent-of-its-global-workforce-182534044.html?src=rss

AMD’s next-gen GPUs are set to arrive in early 2025, suggesting a CES reveal

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AMD and NVIDIA could be on a collision course for CES. AMD CEO Lisa Su has confirmed for the first time that the company is set to release its next-gen PC GPUs early next year.

"In gaming graphics, revenue declined year-over-year as we prepare for a transition to our next-gen Radeon GPUs based on our RDNA 4 architecture," Su told investors on AMD's third-quarter earnings call. "In addition to a strong increase in gaming performance, RDNA 4 delivers significantly higher ray-tracing performance and adds new AI capabilities. We are on track to launch the first RDNA 4 GPUs in early 2025."

The timing very much suggests that AMD will reveal those RDNA 4-based graphics cards at CES in early January. It's rare for the company to unveil desktop GPUs at the trade show (laptop cards are generally the order of the day for AMD at that event). However, it's widely expected that NVIDIA will use its CES keynote to debut its next-gen 50-series GeForce RTX GPUs. We might get a little more clarity on that front when NVIDIA announces its own Q3 earnings results on November 19.

As PCWorld notes, AMD's first RDNA 4 GPUs are expected to deliver mid-range performance at an equivalent price point in a bid to increase its market share. AMD's gaming business (which includes the company's GPU division) saw a 69 percent year-over-year drop in revenue to $462 million in Q3. 

This article originally appeared on Engadget at https://www.engadget.com/computing/amds-next-gen-gpus-are-set-to-arrive-in-early-2025-suggesting-a-ces-reveal-192630199.html?src=rss

Dropbox is laying off 20 percent of its workforce

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For the second time in less than two years, Dropbox is laying off a substantial portion of its workforce. In a blog post penned by CEO Drew Houston, the company said it would cut its global headcount by 20 percent or 528 employees. 

Dropbox will provide impacted workers with up to 16 weeks of pay, with tenured employees eligible for one additional week of pay for each complete year they worked at the company. All impacted employees will also receive their year end equity vest, and the company will provide dedicated support to immigrant workers with one-on-one consultation and extra transition time.

Per a filing with the SEC, Dropbox anticipates this latest round of layoffs will cost it up to $68 million in cash expenditures. At the same time, the company expects it will recognize between $47 million and $52 million in incremental expenses related to all the severance and benefit payouts it now needs to make before the end of year and into the first half of 2025.

“As CEO, I take full responsibility for this decision and the circumstances that led to it, and I’m truly sorry to those impacted by this change,” Houston wrote. “We continue to see softening demand and macro headwinds in our core business. But external factors are only part of the story. We’ve heard from many of you that our organizational structure has become overly complex, with excess layers of management slowing us down.”

Partway through last year, Dropbox laid off 500 employees, or about 16 percent of its workforce at the time. Comparing the memo Houston shared then with the one he posted today, there’s a common theme: slowing growth.

“First, while our business is profitable, our growth has been slowing. Part of this is due to the natural maturation of our existing businesses, but more recently, headwinds from the economic downturn have put pressure on our customers and, in turn, on our business,” Houston wrote in 2023. “As a result, some investments that used to deliver positive returns are no longer sustainable.”

Unfortunately for Dropbox, things haven’t improved on that front. As TechCrunch notes, the company only added 63,000 users during its most recent fiscal quarter (PDF link). Year-over-year revenue growth also stalled at 1.8 percent, the lowest in the company’s history. 

This article originally appeared on Engadget at https://www.engadget.com/big-tech/dropbox-is-laying-off-20-percent-of-its-workforce-151023877.html?src=rss

Waymo raises $5.6 billion to fund Austin and Atlanta expansion

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Waymo has raised another huge chunk of change from investors. The company announced on its blog that it secured an “oversubscribed investment round” of $5.6 billion in funding, the largest of which came from Google's parent company Alphabet.

The company is working with Uber to expand to Austin and Atlanta by the early part of next year. Waymo says it plans to use this latest infusion of capital for the expansions. This latest round brings Waymo’s total capital fundraising to $11.1 billion, with the $5.5 billion it picked up in two earlier rounds in 2020 and 2021.

Waymo currently operates in San Francisco, Los Angeles and Phoenix with a curbside transport service for Sky Harbor International Airport through its Waymo One driving system for businesses. The company announced it’s also started offering “fully autonomous freeway operations in Phoenix and San Francisco.”

The new funding will also help Waymo advance its Waymo One system, an adaptable autonomous driving system for different businesses. Waymo wrote on its blog it plans to “support a variety of business applications over time” through Waymo One.

Alphabet ponied up $5 billion for Waymo back in July as part of what Alphabet’s chief financial officer Ruth Porat called a “multi-year investment.” The driverless vehicle fleet logged a total of 25 million miles in July outpacing companies like Uber, which sold its self-driving unit four years ago before joining forces with Waymo.

This article originally appeared on Engadget at https://www.engadget.com/transportation/waymo-raises-56-billion-to-fund-austin-and-atlanta-expansion-172031686.html?src=rss

Waymo raises $5.6 billion to fund Austin and Atlanta expansion

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Waymo has raised another huge chunk of change from investors. The company announced on its blog that it secured an “oversubscribed investment round” of $5.6 billion in funding, the largest of which came from Google's parent company Alphabet.

The company is working with Uber to expand to Austin and Atlanta by the early part of next year. Waymo says it plans to use this latest infusion of capital for the expansions. This latest round brings Waymo’s total capital fundraising to $11.1 billion, with the $5.5 billion it picked up in two earlier rounds in 2020 and 2021.

Waymo currently operates in San Francisco, Los Angeles and Phoenix with a curbside transport service for Sky Harbor International Airport through its Waymo One driving system for businesses. The company announced it’s also started offering “fully autonomous freeway operations in Phoenix and San Francisco.”

The new funding will also help Waymo advance its Waymo One system, an adaptable autonomous driving system for different businesses. Waymo wrote on its blog it plans to “support a variety of business applications over time” through Waymo One.

Alphabet ponied up $5 billion for Waymo back in July as part of what Alphabet’s chief financial officer Ruth Porat called a “multi-year investment.” The driverless vehicle fleet logged a total of 25 million miles in July outpacing companies like Uber, which sold its self-driving unit four years ago before joining forces with Waymo.

This article originally appeared on Engadget at https://www.engadget.com/transportation/waymo-raises-56-billion-to-fund-austin-and-atlanta-expansion-172031686.html?src=rss

Apple, Goldman Sachs fined $89 million for misleading Apple Card customers

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The Apple Card has landed Apple and Goldman Sachs in hot water. In a press release spotted by The Verge, the Consumer Financial Protection Bureau (CFPB) said it was fining the two companies a combined $89 million over practices involving the Apple Card.

The CFPB says Apple failed to send “tens of thousands” of disputed card transactions to Goldman Sachs. When it finally sent the transactions to the investment bank, Goldman Sachs failed to follow “numerous federal requirements for investigating the disputes,” according to the CFPB’s announcement.

Apple and Goldman are also accused of misleading customers about the Apple Card. Some consumers believed they could make interest-free payments to purchase an Apple device with the credit card but interest charges still showed up on their bill “because they were not automatically enrolled as expected.”

Apple is also accused of keeping its interest-free payment option off of its website if the customer wasn’t using a Safari browser. The CFPB also says Goldman Sachs misled customers about the application of some refunds that racked up additional interest charges.

The CFPB has ordered Goldman Sachs to pay at least $19.8 million in redress funds and a $45 million civil money penalty. The company is also required to present a “credible plan” to comply with laws before launching any new credit card product. Apple also received a $25 million civil money penalty that will go to the CFPB’s victims relief fund.

Apple and Goldman Sachs introduced the Apple Card in 2019, advertising it as a product that could “help customers lead a healthier financial life.”. Four years later, a report from the Wall Street Journal said that Goldman Sachs was starting to have doubts about the consumer lending industry and thought the venture may have been a mistake.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-goldman-sachs-fined-89-million-for-misleading-apple-card-customers-192538650.html?src=rss

Uber is reportedly exploring an Expedia takeover

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Uber is reportedly exploring the idea of purchasing Expedia, one of the largest travel booking companies in the world, according to the Financial Times. Expedia, which is valued at $20 billion and which reported its highest-ever annual revenue in 2023, will be the company's biggest acquisition, if the deal does indeed push through. The Times says it's very early days, however, and Uber hasn't even made a formal offer for the travel company yet. It's still in the process of studying the implications of acquiring Expedia and has, over the past months, worked with advisers to figure out whether the deal is feasible and how it would be structured. 

The company's CEO, Dara Khosrowshahi, may have to sit out deal discussions, seeing as he used to be CEO of Expedia before he was hired by the ride-hailing service in 2017. He's still in its Board of Directors, as well. It doesn't sound like Khosrowshahi was the one who suggested the potential purchase, though — in its report, the Times said the idea was "broached by a third party."

Uber has had plans to become a wider travel booking platform for a while now. Khosrowshahi said he wanted Uber to be the "Amazon of transportation" from the time he joined the company. Since then, the ride-hailing service has added train, bus and flight bookings in some markets, and it has also made several large acquisitions. It purchased online food delivery service Postmates for $2.65 billion and alcohol delivery service Drizly for $1.1 billion before shutting it down three years later. The company also teamed up with Waymo and Cruise to offer autonomous rides in certain markets. As the Times notes, Uber became profitable for the first time in 2023 due to a renewed demand for rides and food delivery and could be a in a good position to acquire a company as big as Expedia. 

This article originally appeared on Engadget at https://www.engadget.com/big-tech/uber-is-reportedly-exploring-an-expedia-takeover-120038754.html?src=rss

Data breach of Fidelity leaks 77,000 customers’ personal data

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Another breach of a huge financial institution has leaked the personal information of thousands of customers to the public. TechCrunch reported that an unidentified hacker obtained 77,009 customers’ personal data from the asset management firm Fidelity Investments.

A filing by Maine’s attorney general posted yesterday revealed that the unidentified third party obtained the information in mid-August using two phony customer accounts. It’s not yet known how these accounts were used to access customer data. Fidelity said in a letter to its customers that it discovered the breach on August 19. The letter also said that the unidentified party did not access customers’ Fidelity accounts but after Fidelity completed its review, it confirmed that customers’ personal data had been breached.

The New Hampshire attorney general’s office filed a second data breach notice yesterday revealing another “data security incident” of Fidelity Investments’ customer data. The notice says the unauthorized third party obtained access to “an internal database that houses images of documents pertaining to Fidelity customers” by submitting fake requests for access also on August 19. The second data breach did not provide unwanted access to any customer accounts or funds and the leaked information only “related to a small subset of Fidelity’s customers.”

If you believe your data has been obtained by unwanted parties or is part of a data leak, the Federal Trade Commission recommends putting a freeze and fraud alerts on your credit reports and personal bank and credit card accounts. You can also report any identity theft incidents at IdentityTheft.gov or by calling 1-877-438-4338.

This article originally appeared on Engadget at https://www.engadget.com/cybersecurity/data-breach-of-fidelity-leaks-77000-customers-personal-data-214248985.html?src=rss

Comcast says 230,000 customers affected by debt collection data breach

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Comcast is warning that hackers stole the personal data of more than 230,000 customers during a ransomware attack on a third-party debt collector, according to a court filing. The bad actors targeted a Pennsylvania-based debt collection agency called Financial Business and Consumer Solutions (FBCS.)

The attack occurred back in February, but Comcast claims that FBCS initially said that the incident didn’t involve any customer data. FBCS changed its tune by July, when it notified Comcast that customer information had been compromised, according to reporting by TechCrunch.

All told, 237,703 subscribers were impacted by the breach. The attackers were thorough, scooping up names, addresses, Social Security numbers, dates of birth, Comcast account numbers and ID numbers. Comcast says the stolen data belongs to customers who signed up with the company “around 2021.” It also says it has stopped using FBCS for the purposes of debt collection.

“From February 14 and February 26, 2024, an unauthorized party gained access to FBCS’s computer network and some of its computers,” the filing states. “During this time, the unauthorized party downloaded data from FBCS systems and encrypted some systems as part of a ransomware attack.”

No group has stepped forward to claim credit for the incident. FBCS has only referred to the attacker as an “unauthorized actor.” The debt collection agency was hit hard by this attack, with Comcast customers being just one group of victims. The company says more than four million people were impacted and that the cybercriminals accessed medical claims and health insurance information, in addition to standard identification data. 

To that end, medical debt-purchasing company CF Medical confirmed that 600,000 of its customers were involved in the breach. Truist Bank also confirmed it was affected by the attack.

It’s notable that this incident primarily impacts debtors, opening them up to potential scams. Chris Hauk, consumer privacy advocate at Pixel Privacy, told Engadget that “the bad actors that get their paws on this information may use it to pose as debt relief agencies, which many turn to as a way out of their situation, meaning many of the involved debtors may be defrauded out of large sums of money, something they can ill-afford.”

In other words, keep an eye out for suspicious phone calls, emails and texts. This is good advice for anyone, and not just debtors who had data stored with FBCS. After all, it was revealed that hackers stole more than 2.7 billion records from American consumers earlier this year, which likely includes data on everyone who lives in the country.

This article originally appeared on Engadget at https://www.engadget.com/cybersecurity/comcast-says-230000-customers-affected-by-debt-collection-data-breach-184554728.html?src=rss