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Category: Technology

  • VC’s eye acquisition and regional markets amid clogged IPO pipelines

    • Macroeconomic activity and geopolitical tensions have made for an uncertain global venture capital climate in recent months. Amid clogged IPO pipelines and a liquidity crunch, some venture capitalists are shifting focus to acquisitions and regional markets to find exit opportunities and sustain returns.

    VCs are looking to regional and acquisition markets amid a slowdown in IPOs.

    The venture capitalist market has been under pressure recently after several high-profile companies paused their IPO plans amid growing market uncertainty.

    Buy now, pay later leader Klarna and ticketing platform StubHub were both preparing to go public in the near future, but have since hit pause on their launches. The IPO clog is creating a liquidity crunch among VC firms, causing some investors to look elsewhere.

    “There are signs of life, certainly in the acquisition market — we are seeing really cool things happen,” Aidan Madigan-Curtis, a General Partner at Eclipse Ventures, told the audience at Fortune’s Most Powerful Women Summit in Riyadh.

    Madigan-Curtis cited OpenAI’s recent deal to buy AI coding startup Windsurf for $3 billion as an example.

    “Some of these mega players that have stayed private and are getting built up and bid up and who knows what the exit strategy looks for those guys in the long run, but probably at some point they’ll need to IPO. But the IPO is just behemoths in their space, and they are creating almost these mini-ecosystems where they’re doing more acquisitive activity and creating some really kind of neat, fast-paced high RR exits,” she said.

    Others are looking to more regional markets for signs of life.

    “The regional IPO markets have never been stronger or better,” Noor Sweid, Founder and Managing Partner at Global Ventures, said. “We had a 30% growth in regional IPOs last year.”

    Venture capital investment in the Middle East and North Africa surged in the first quarter of this year, with startups in the region raising $678 million, per Bloomberg. The surge makes it the region’s strongest quarter since the end of 2023.

    Saudi Arabia was in the top spot for MENA investment and ranked first globally among emerging markets, according to data from Magnitt.

    VC market under pressure

    The VC market has also suffered from the economic disruption of Trump’s global tariffs.

    Market chaos caused the sweeping tariffs to dash hopes for a venture capital rebound in 2025. Trump’s tariffs exacerbated existing challenges in the VC market, according to PitchBook, especially as IPO pipelines remain clogged and liquidity scarce.

    Despite strong demand for AI, which, according to PitchBook, attracted over 70% of U.S. VC funding in Q1 2025, supply chain disruptions exacerbated by the tariffs may also dampen investor appetite, particularly in hardware-dependent sectors like AI infrastructure.

    Industry leaders previously told Fortune that tariffs could prolong market stagnation, delay innovation cycles, and extend the current liquidity crunch across the VC ecosystem.

    This story was originally featured on Fortune.com

  • Microsoft is reducing ‘politically focused emails’ after employees discovered messages mentioning ‘Palestine,’ ‘Gaza,’ or ‘genocide’ were being blocked

    • Microsoft employees discovered that company emails containing words like “Palestine” and “Gaza” were being blocked following protests against the company’s ties to the Israeli government. Protest group ‘No Azure for Apartheid’ has accused the company of censorship and retaliation.

    Microsoft employees discovered that the company is blocking emails that contain words like “Palestine,” “Gaza,” and “Genocide” after a series of protesters disputed the company’s flagship Build event.

    The protest group “No Azure for Apartheid” publicized the email restrictions via a social media post. Microsoft did not reply to Fortune’s request for comment, but the company confirmed to The Verge that it had implemented some changes to reduce “politically focused emails” within the company.

    “No Azure for Apartheid” called the development: “Yet another chapter in a long tale of Microsoft’s intimidation, retaliation, repression, and censorship culture.”

    Tensions have been riding high within the company after a series of protesters, including at least one former Microsoft worker, disrupted the company’s Build event to oppose the company’s contracts with the Israeli government.

    Microsoft fired one of the protesters, Joe Lopez, after he disrupted CEO Satya Nadella’s keynote and sent a mass email to employees. In the email, Lopez said his actions had been prompted by the “silence” of company leadership following previous protests over the company’s links to the Israeli government.

    In a separate incident, Microsoft’s head of security for AI, Neta Haiby, accidentally revealed private messages about Walmart’s use of Microsoft’s AI tools after protesters interrupted her talk.

    Haiby accidentally switched the screen she was sharing to display internal messages about Walmart’s upcoming use of Microsoft’s AI.

    In one of the Teams messages, a Walmart AI engineer was quoted as saying: “Microsoft is WAY ahead of Google with AI security. We are excited to go down this path with you.”

    Responding to the recent protests, a spokesperson for Microsoft previously told Fortune: “The safety and well-being of our employees, customers, and community remain our top priority. We support the right to peaceful assembly and ask that it be exercised respectfully.”

    Protests at Microsoft  

    Microsoft has faced similar protests before. Just last month, ex-employees disrupted its 50th-anniversary event, denouncing the company’s AI chief, Mustafa Suleyman, as a “war profiteer.”

    Last year, the company also dismissed two employees who organized a vigil for Palestinians killed in Gaza, citing breaches of internal company policies as the cause.

    Microsoft has continually denied that its technology is used by the Israeli military to harm Palestinian civilians in Gaza. Earlier this month, the company published the results of an internal review that found “no evidence” of Microsoft’s Azure or AI technologies being used to harm people.

    Protesters have rejected the review, however, criticizing its scope. Microsoft acknowledged in the review that it didn’t “have visibility into how customers use our software on their own servers or other devices.”

    In his email to employees, Lopez accused Microsoft’s leaders of telling lies about Azure’s use in Gaza.

    “Those of us who have been paying attention know that this is a bold-faced lie. Every byte of data that is stored on the cloud (much of it likely containing data obtained by illegal mass surveillance) can and will be used as justification to level cities and exterminate Palestinians,” Lopez wrote.

    This story was originally featured on Fortune.com

  • Andy Jassy makes the case for Amazon’s extraordinary AI spending, promising shareholders they will end up ‘very happy’

    Amazon’s annual shareholder meeting featured no surprises on Wednesday, as investors again rejected all proposals from their peers for the company to provide additional oversight and transparency on their business operations and impact.

    But the approximately hour-long meeting did provide a venue for Amazon CEO Andy Jassy to once again made the case for the company’s extraordinary—and fast-growing—investments into artificial intelligence infrastructure and products, with capital expenditures primarily focused on this space to grow to around $100 billion in 2025, up from $78 billion last year.

    Calling the current gen AI environment a “very unusual opportunity,” Jassy rattled off nearly a dozen different tangible use cases of the technology inside Amazon, across both his opening remarks as well as in response to a question from a shareholder that asked if Amazon was slowing down its AI investments as some thought a recent Wells Fargo report was indicating. (Jassy denied a slowdown).

    The CEO cited gen AI uses across two realms: “cost avoidance and productivity” and “altogether new customer experiences.”

    In the first bucket, he referenced the company’s core customer service chatbot, that was rearchitected using gen AI, as well as gen AI tools that help Amazon sellers create new listings quicker, as well as ones that help the company forecast customer demand for inventory more accurately.

    In the second bucket, Jassy breezed through a bevy of customer-facing products, from the Rufus shopping assistant, to the new Alexa Plus voice assistant, which the company began rolling out to a limited customer base last month (though these new users are currently hard to find). The CEO also pointed to AI-powered customer review summaries on Amazon’s shopping app, and new products geared toward AWS customers like the Nova foundational model and the company’s Trainium AI chips.

    “We happen to believe that virtually every customer experience will be reinvented using AI,” Jassy said. 

    He said that shareholders who see this transformation through over the long term will end up “very happy.”

    Jassy’s comments come as he and other rival Big Tech CEOs continue to explain and defend their unprecedented investments into generative AI consumer technologies and infrastructure since ChatGPT burst onto the scene more than two years ago. Such explanations or defenses have become regular occurrences on earnings reports as public-market investors try to balance the potential of what many see as a historic business opportunity with the exceptional resources being poured into this arms race.

    For CEOs like Jassy, the explanations not only are designed to appease, educate or excite investors, but also could be seen as signals meant to help attract specialized and coveted talent.

    This story was originally featured on Fortune.com

  • Microsoft’s and Google’s dueling developer conferences reveal opposite AI strategies—and a big weakness for one company

    In the span of one day and 750 miles, two of tech’s biggest companies put on conferences for their armies of developers this week. And while both Microsoft’s Build and Google’s I/O conferences were all about AI, the dueling convocations highlighted how the two industry behemoths are each seeking to conquer the market through radically different strategies.

    Both companies made a big push into AI coding assistants that can autonomously build and test software—with Microsoft announcing a new autonomous coding feature for GitHub Copilot and Googled debuting its Jules coding agent. But beyond coding agents, some key differences in emphasis pointed at divergent strategies.

    Microsoft is battling to convince enterprises to build AI agents

    At Build, Microsoft placed a far greater emphasis in its announcements on tools that are designed to help enterprise customers create AI agents and get them to successfully automate workflows. Microsoft’s announcements were about how to allow agents to use tools, get agents to work with other agents, and, critically, to control what data AI agents access. These things matter to big companies and governments.

    In an episode that underscored that point, in what may or may not have been an inadvertent slip-up, when a pro-Palestinian protestor interrupted a Build session on security best practices in the age of AI, Neta Haiby, Microsoft’s head of AI security mistakenly shared her computer screen with the Build livestream. In doing so, she revealed a Teams message from one of her colleagues from Microsoft’s cloud business. In it, the cloud employee said that Walmart, which uses many AI applications on Microsoft’s Azure cloud service, was planning to use Microsoft’s newly-announced AI Gateway, which is a software layer that adds security and analytics around generative AI applications, and its new Entra product, which is an identity management tool for AI agents. The employee quoted a Walmart AI engineer as saying that “Microsoft is WAY ahead of Google with AI security.” The disclosure seemed completely accidental—Walmart has not yet announced its use of these Microsoft services—but the fact is it perfectly reinforced Microsoft’s marketing message. If it was an accident, it was a happy one for Microsoft.

    Even the more consumer-oriented aspects of what Microsoft announced were aimed at business customers. It debuted a protocol called NLWeb that makes it easy for any website or app to set up a chatbot that will allow a user to query the site in natural language. That will make for a better shopping experience and searching experience for consumers, but the idea here is to help companies drive more sales.

    Google is battling for consumers and individual creators

    Contrast that to what Google announced at I/O. Here the emphasis was almost entirely on consumers, not large organizations. It was about individual web users and individual content creators. The biggest news was the revamping of Google’s core Search product, with more AI Overviews, which provide capsule answers to queries, and also a new “AI Mode” that provides a more native AI experience, similar to what users get with OpenAI’s ChatGPT, using Google’s most capable AI models. It will also have new features that allow shoppers to virtually try on outfits as they shop.

    Other announcements from Google were new image, audio, and video generative AI tools that were aimed at both general consumers and social media creators. This makes sense given Google’s ownership of YouTube, as the tools make it easier for users to generate engaging content.

    Sure, there was some talk about agentic AI capabilities—which are being released under what Google is calling Project Mariner—but these were about agents designed to help consumers do things, like purchase tickets to a sporting event, or buy groceries. Project Mariner is about building a universal personal assistant. It is not about automating enterprise workflows.

    The only product with real enterprise uses that Google highlighted at I/O was Beam, a system that renders people in 3D in video calls. Many companies will probably sign up for Beam thinking it helps teams collaborate remotely and maybe even makes virtual sales calls more effective, but it hardly seems like something that is going to transform business.

    Microsoft needs the tech to work. Google needs that—and a new business model

    What was also striking between Build and I/O is how comfortably the innovations Microsoft is announcing sit within the software giant’s existing business model, and how awkwardly much of what Google announced sits within its own.

    Sure, Microsoft is taking a risk that its customers won’t find enough value in all the agentic AI products and features it is rolling out to pay the increased license fee that Microsoft wants to charge for it. But, if the AI agents gain traction, they only reinforce its existing cloud business and subscription-based business model.

    Google, on the other hand, is taking a big gamble with its rollout of AI features that could directly cannibalize the advertising-based business model on which it has depended for a quarter century. Search represents 56% of Google’s revenues and most of its profits. If people click on fewer links with AI Overviews, as independent studies suggest, or if AI Mode offers far fewer opportunities for paid links, as also seems to be the case, it isn’t clear how Google will maintain its revenues.

    There are plenty of ways to imagine new business models for chatbot-like interface and a universal personal AI assistant. But Google has not said yet what it thinks those business models should be—and listening to Google executives speak at I/O one got the sense the company hasn’t really figured it out yet.

    At least the image, video, and audio generation products it announced help feed YouTube, which still has a healthy ad-driven business. But for many of its AI features, Google is trying for now to pivot to selling pricey subscriptions. It has renamed its $19.99 per month AI Premium subscription Google AI Pro, and made some of its new features available to those subscribers. And then it has announced a very expensive $250 per month Google AI Ultra subscription for power users who will get access to Google’s most advanced AI capabilities, with few caps on usage.

    It’s hard to imagine that Google will be able to sell enough of these subscriptions to replace the ad dollars they are potentially going to lose by rolling out the AI Search features. In fact, the Ultra tier is so expensive it isn’t really a business at all. It might just about cover the costs of those few power users who sign up for it. But it doesn’t seem like a serious business for a company of Google’s scale. It is at best a stop gap measure—a halfway house between the Google of the past, and a future Google whose shape has not yet come into focus. (No doubt Google is under pressure to roll out these features on the theory that it is better to disrupt its own business model, than to let OpenAI disrupt it. More on that here from Fortune’s Sharon Goldman.)

    As its I/O conference made clear, Google is essentially a consumer AI company. And while a subscription model can work for consumer brands—just ask Netflix or Spotify—it can’t work for consumers at $250 per month. In fact, even those streaming companies have found that to keep producing the growth Wall Street demands, they’ve had to incorporate advertising into their offerings. Ultimately, Google is going to have to figure out a way to make advertising still work in a new world of chatbots and AI personal assistants it is rapidly ushering into existence. Microsoft’s challenge is daunting but easier: it just has to figure out how to make the tech work well enough to justify its cost to serve.

    In other words, Google needs to not only invent the tech, it needs to reinvent itself. 

    This story was originally featured on Fortune.com

  • OpenAI’s hiring of legendary former Apple design boss Jony Ive is a $6.5 billion move to dominate the AI age by creating the next iPhone

    When OpenAI released ChatGPT in late 2022, many described it as an “iPhone moment” for artificial intelligence technology.

    On Wednesday, OpenAI took the analogy to the next logical step by hiring the creator of the Apple iPhone as part of a $6.5 billion acquisition that holds the potential to create an entirely new way for people to interact with AI technology.

    OpenAI said it has acquired io, a startup founded by former Apple design chief Jony Ive. Ive and his team will now join OpenAI and lead creative and design work including on AI-powered computers, adding an intriguing new line of business for what has become an artificial intelligence powerhouse.

    “The io team, focused on developing products that inspire, empower and enable, will now merge with OpenAI to work more intimately with the research, engineering and product teams in San Francisco,” OpenAI said in a blog post.

    The deal marks the biggest acquisition ever for the privately held OpenAI, which investors recently valued at $300 billion. It comes just a weeks after OpenAI paid $3 billion for AI-assisted software coding tool Windsurfer.

    Details about io’s product have not been revealed. What is increasingly clear, however, is that the interface to a universal personal AI assistant may not be on your phone, and definitely not your laptop. It could be some kind of wearable device. And Ive, given his huge role in making the iPhone, is well positioned to build one.

    “The products that we’re using to deliver and connect us to unimaginable technology, they’re decades old. So it’s just common sense to at least think surely there’s something beyond these legacy products,” Ive said in a video that OpenAI posted about the acquisition.

    Altman is betting that lightning will strike twice with his new hire. The market for a new AI device, like the smartphone before it, could be huge. While there will certainly be competing devices, as there were with smartphones, Altman’s expensive bet could pay off big. Since Apple introduced the iPhone in 2007, its revenue and market valuation have exploded, with Apple now worth more than $3 trillion.

    In OpenAI’s video, Altman said he was impressed with the device Ive’s company has built, but offered no details about it. “Jony recently gave me one of the prototypes of the device for the first time to take home and I’ve been able to live with it, and I think it is the coolest piece that the world will have ever seen,” he said.

    Or course, the acquisition comes with major risks. Whatever the team ends up building with OpenAI, if anything, could flop. Meanwhile, OpenAI is burning through cash at a rapid rate as it tries to compete against Big Tech companies like Google-parent Alphabet and Facebook-parent Meta.

    The Ives/OpenAI alliance is not the first to envision an entirely new form of hardware gadget for the AI age. Meta’s AI-enabled RayBan glasses have proven to be popular with consumers, to the point that Google announced its own partnership Tuesday with Warby Parker to produce smart glasses. Other efforts, like the much-hyped Humane badge—created by a pair of former Apple staffers—have turned out to be expensive flops bedeviled by technical glitches.

    In a sign that investors think the new OpenAI alliance may be a winner, Apple’s shares quickly fell after the announcement about the acquisition, tumbling more than 2.5%.

    This story was originally featured on Fortune.com

  • The pace of innovation in tech has accelerated from years to months thanks to AI, Microsoft chief privacy officer says

    • Microsoft’s chief privacy officer and corporate vice president of global privacy and regulatory affairs, Julie Brill, says AI has accelerated the pace of innovation. Before joining Microsoft, Brill held several prominent roles in public service, including at the US Federal Trade Commission.

    During her time as a Commissioner of the Federal Trade Commission, Microsoft’s chief privacy officer Julie Brill was at the forefront of several major technological advances—but she’s never seen anything quite like AI.

    “We used to see a lot of technological advances, and we felt like we were always behind,” Brill told the audience at the Fortune Most Powerful Women Summit in Riyadh. “Now the pace of innovation has just accelerated. What used to take years to get out now takes months.”

    Ever since the launch of ChatGPT in late 2022, tech companies have been engaged in a so-called AI arms race. Companies, including Microsoft, have been working overtime to get increasingly advanced AI products to market before rivals.

    The unprecedented speed at which AI companies are rolling out improved models has made things tricky for regulators.

    “Regulators are trying to keep up and doing…not a bad job, in my view,” Brill said. “And what we’re seeing in companies is…a real desire to be ahead, to be leaders, and also to make sure that it is safe and trusted, and that is a big job right now.”

    Regulators have been trying to keep pace with tech companies’ advancements, but this has become somewhat of a moving target as technology improves. For example, the EU’s AI Act, the most significant piece of global legislation, has been criticized for its potential impact on innovation.

    Brill said some of the rush to regulate AI was due to governments feeling like they had “missed the boat on social media.” However, she also said lawmakers needed to take a step back and ensure that regulation did not conflict with innovation.

    “I think there’s now a recognition that there’s a need to take an examination, really take a step back…make sure that these laws can be implemented by companies across the spectrum,” she said. “We want to enable startups. We want to enable innovation.”

    Brill served as a commissioner at the Federal Trade Commission from April 6, 2010, to March 31, 2016. During her tenure, she was recognized as the Commission’s most influential voice on Internet privacy and data security. In her current role, Brill leads Microsoft’s efforts in privacy, digital safety, responsible AI, and regulatory affairs. 

    This story was originally featured on Fortune.com

  • Gen Z creators may soon have a new $20,000-paying side-gig thanks to this new Instagram feature

    • Instagram content creators may soon make up to $20,000 to convince their followers to switch from rival social apps like TikTok and YouTube. The photo-sharing platform is testing a new program which will pay out $100 for every new user or eligible visit.

    How would you like to be $20,000 richer for simply getting people to download an app?

    Instagram is now willing to dish out fat paychecks—so long as you can bring new users to the platform. 

    In a new program called “Referrals,” creators who convince users to visit the app or sign up for an account will be rewarded. The program is currently being tested with a select group of U.S.-based creators, Meta confirmed to Fortune. The program was first reported by Business Insider.

    Creators are offered one of two options: earn $100 for every eligible new user who signs up for an Instagram account or earn $100 for every 1,000 “eligible visits” to the Instagram app, according to BI. The maximum payout is $20,000, if they’re able to bring in 200 new users or 200,000 eligible visits over the course of six weeks.

    This extra bit of cash could be a game changer for some in the creator economy, who have struggled with many sponsorships and brand deals going to a select group of top-tier influencers. And with nearly two-thirds of young people including Gen Z saying they have or have started a side gig to supplement income, the program could be another way to earn extra income.

    Content creation is the holy grail for young people

    Young people grew up watching their favorite influencers—from MrBeast to Ms. Rachel—make millions off of their online content. And as they chart their own future in an era where the worthiness of college degrees are in question, content creation seems like a fun, attractive way to make a living. In fact, becoming YouTubers and TikTokers are the top job aspirations of Gen Alpha.

    While online influencing is a field with relatively low barriers to entry—just a smartphone and some creativity will do—success is relatively unpredictable among newcomers. Moreover, Bank of America data has shown the number of its customers earning income as content creators has continued to decline due to a slowdown in paid partnerships and most brand collaborations being available to a select few top creators.

    But, for those who post videos on a part-time basis, it has an exciting level of unpredictability; it can just take one video to go viral to change a creator’s future. 

    The social media battle for attention

    The “Referrals” program is Instagram’s latest attempt to keep young people interested as TikTok and YouTube have become fierce competition for the attention of Gen Z.

    In fact, over the years, Instagram has spent “hundreds of millions” of dollars trying to woo creators, the CEO of Instagram Adam Mosseri said earlier this month during the ongoing FTC antitrust trial against Meta.

    Facebook, too, has ramped up its incentives for creators to post on its platform by monetizing its Stories function, with some users earning $5,000 for content that otherwise would have yielded no income.

    With the future of TikTok still up in the air, the short-form video platform is also leveraging a rewards program to attract new users. After inviting friends to the app, both users are given “TikTok Rewards” that could be eventually withdrawn as cash.

    Rachel Muse, a content creator with over 260,000 TikTok followers told Fortune earlier this year that while the then-TikTok ban would affect her income, she’d simply have to join all the other influencers in adapting to the shifting environment.

    “It’s such a gift to document and share the things I love and I plan to continue doing so on other platforms like Instagram and YouTube,” she said. “I don’t think that short-form video is going anywhere and though it technically makes my job harder, being anxious about that won’t help the situation at all.”

    This story was originally featured on Fortune.com

  • 25 American states have laws that ban or regulate cellphones in schools. More are coming

    Florida was the first state to pass a law regulating the use of cellphones in schools in 2023.

    Just two years later, half of all states have laws in place, with more likely to act soon.

    Bills have sprinted through legislatures this year in states as varied as New York and Oklahoma, reflecting a broad consensus that phones are bad for kids.

    Connecticut state Rep. Jennifer Leeper, a Democrat and co-chair of the General Assembly’s Education Committee, on May 13 called phones “a cancer on our kids” that are “driving isolation, loneliness, decreasing attention and having major impacts both on social-emotional well-being but also learning.”

    Republicans express similar sentiments.

    “This is a not just an academic bill,” Republican Rep. Scott Hilton said after Georgia’s bill, which only bans phones in grades K-8, passed in March. “This is a mental health bill. It’s a public safety bill.”

    So far, 25 states have passed laws, with eight other states and the District of Columbia implementing rules or making recommendations to local districts. Of the states, 16 have acted this year. Just Tuesday, Alaska lawmakers required schools to regulate cellphones when they overrode an education package that Republican Gov. Mike Dunleavy had vetoed for unrelated reasons.

    More action is coming as bills await a governor’s signature or veto in Florida, Missouri, Nebraska and New Hampshire.

    Increasing focus on banning phones throughout the school day

    When Florida first acted, lawmakers ordered schools to ban phones during instructional time while allowing them between classes or at lunch. But now there’s another bill awaiting Gov. Ron DeSantis’ action that goes further. It would ban phones for the entire school day for elementary and middle schools.

    Nine states and the District of Columbia have enacted school day bans, most for students in grades K-12, and they now outnumber the seven states with instructional time bans.

    North Dakota Republican Gov. Kelly Armstrong called the ban throughout the school day that he signed into law “a huge win.”

    “Teachers wanted it. Parents wanted it. Principals wanted it. School boards wanted it,” Armstrong said.

    Armstrong recently visited a grade school with such a ban in place. He said he saw kids engaging with each other and laughing at tables during lunch.

    The “bell-to-bell” bans have been promoted in part by ExcelinEd, the education think tank founded by former Florida Gov. Jeb Bush. The group’s political affiliate has been active in lobbying for bans.

    Nathan Hoffman, ExcelinEd’s senior director of state policy and advocacy, said barring phones throughout the day heads off problems outside of class, like when students set up or record fights in halls.

    “That’s often when you get some of your biggest behavioral issues, whether they go viral or not,” Hoffman said.

    Other states want school districts to set their own rules

    But other states, particularly where there are strong traditions of local school control, are mandating only that school districts adopt some kind of cellphone policy, believing districts will take the hint and sharply restrict phone access. In Maine, where some lawmakers originally proposed a school day ban, lawmakers are now considering a rewritten bill that would only require a policy.

    And there have been a few states where lawmakers failed to act at all. Maybe the most dramatic was in Wyoming, where senators voted down a bill in January, with some opponents saying teachers or parents should set the rules.

    Where policymakers have moved ahead, there’s a growing consensus around exceptions. Most states are letting students use electronic devices to monitor medical needs and meet the terms of their special education plans. Some are allowing exceptions for translation devices if English isn’t a student’s first language or when a teacher wants students to use devices for classwork.

    There are some unusual exceptions, too. South Carolina’s original policy allowed an exception for students who are volunteer firefighters. West Virginia’s new law allows smartwatches as long as they are not being used for communication.

    Some parents and students oppose the rules

    But by far the most high-profile exception has been allowing cellphone use in case of emergencies. One of the most common parent objections to a ban is that they would not be able to contact their child in a crisis like a school shooting.

    “It was only through text messages that parents knew what was happening,” said Tinya Brown, whose daughter is a freshman at Apalachee High School, northeast of Atlanta, where a shooting killed two students and two teachers in September. She spoke against Georgia’s law at a news conference in March.

    Some laws call for schools to find other ways for parents to communicate with their children at schools, but most lawmakers say they support giving students access to their cellphones, at least after the immediate danger has passed, during an emergency.

    In some states, students have testified in favor of regulations, but it’s also clear that many students, especially in high schools, are chafing under the rules. Kaytlin Villescas, a sophomore at Prairieville High School, in the suburbs of Baton Rouge, Louisiana, is one student who took up the fight against bans, starting a petition and telling WBRZ-TV in August that Louisiana’s law requiring a school day ban is misguided. She argued that schools should instead teach responsible use.

    “It is our proposition that rather than banning cellphone use entirely, schools should impart guidelines on responsible use, thereby building a culture of respect and self-regulation,” Villescas wrote in an online petition.

    Most states provide no funding to carry out laws

    A few states have provided money for districts to buy lockable phone storage pouches or other storage solutions. New York, for example, plans to spend $13.5 million. But states have typically provided no cash. New Hampshire lawmakers stripped a proposed $1 million from their bill.

    “Providing some specific money for this would kind of ease some of those implementation challenges,” Hoffman said. ”That said, most states have not.”

    This story was originally featured on Fortune.com

  • Microsoft employee shouts over Satya Nadella’s keynote to protest claims of ‘Israel’s war crimes powered by Azure’

    • An employee disrupted Satya Nadella’s keynote at Microsoft Build to protest the company’s contracts with the Israeli government. The protest was part of a larger campaign by a group called “No Azure for Apartheid,” which includes current and former Microsoft workers. Despite an internal review that found no evidence of misuse, critics argue the company lacks visibility into how the Israeli military is actually using its technologies.

    A Microsoft employee dramatically disrupted Satya Nadella’s keynote speech at the company’s flagship Build event on Monday. The employee, who is a member of a group called “No Azure for Apartheid,” was protesting against the company’s contracts with the Israeli government amid the country’s ongoing war in Gaza.

    The employee, Joe Lopez, was joined by a former Google employee who also staged a protest against his previous employer’s links with the Israeli government.

    “Satya! How about you show how Microsoft is killing Palestinians? How about you show the Israeli war crimes are powered by Azure,” Lopez shouted during the CEO’s speech. “As a Microsoft worker, I refuse to be complicit in this genocide. Free Palestine!”

    Lopez was removed after the protest, but in a video shared on the “No Azure for Apartheid” Instagram page, another disruptor shouted as Nadella continued his speech.

    Following the protest, Lopez sent a mass email to Microsoft workers explaining his actions. He said he was “shocked by the silence of our leadership” following previous protests over the company’s contracts with the Israeli government.

    Microsoft has dealt with similar protests in the past. Last month, former employees disrupted the company’s 50th-anniversary celebrations, calling Microsoft’s AI CEO, Mustafa Suleyman, a “war profiteer.”

    Microsoft also fired two employees last year for holding a vigil for Palestinians killed in Gaza, with the tech giant citing violations of internal policies.

    Microsoft says its tech is not being used to harm civilians

    In response to the protests, Microsoft has denied that its technology is used by the Israeli military to harm Palestinian civilians in Gaza.

    Earlier this month, the company said it had conducted an internal review with the help of an external firm that found “no evidence that Microsoft’s Azure and AI technologies, or any of our other software, have been used to harm people or that IMOD has failed to comply with our terms of service or our AI Code of Conduct.”

    The review did not soothe all employees’ concerns, however, as the company acknowledged its review was limited in scope because it didn’t “have visibility into how customers use our software on their own servers or other devices.”

    Lopez rejected the company’s recent review in his email to employees.

    “Leadership rejects our claims that Azure technology is being used to target or harm civilians in Gaza,” he wrote. “Those of us who have been paying attention know that this is a bold-faced lie. Every byte of data that is stored on the cloud (much of it likely containing data obtained by illegal mass surveillance) can and will be used as justification to level cities and exterminate Palestinians.”

    A spokesperson for Microsoft told Fortune: “The safety and well-being of our employees, customers, and community remain our top priority. We support the right to peaceful assembly and ask that it be exercised respectfully.”

    Who are the ‘No Azure for Apartheid’ group?

    The protest group behind the disruption is made up of former and current Microsoft workers. Established in 2024, the group is demanding that the tech giant cease all Azure contracts and partnerships with the Israeli military and government.

    The group also wants Microsoft to: “Make all ties to the Israeli state, military, and tech industry publicly known, including weapons manufacturers and contractors. Conduct a transparent and independent audit of Microsoft’s technology contracts, services, and investments.”

    Protesters hold a sign that says "No Azure For Apartheid"
    The protest was part of a larger campaign by a group called “No Azure for Apartheid.”
    Photo by JASON REDMOND/AFP via Getty Images

    The protest group has officially rejected Microsoft’s review, which was conducted earlier this month.

    In the statement made to GeekWire, one of the group’s organizers, Hossam Nasr, said: “In one breath, they claim that their technology is not being used to harm people in Gaza,” while also admitting “they don’t have insight into how their technologies are being used” on Israeli military servers.

    “There is no form of selling technology to an army that is plausibly accused of genocide — whose leaders are wanted for war crimes and crimes against humanity by the International Criminal Court — that would be ethical,” Nasr added. “That’s the premise that we reject.”

    This story was originally featured on Fortune.com

  • Google pushes AI deeper into its empire of search, shopping, and work products at its developer conference

    Google showed off a slew of new AI products on Tuesday, leveraging its massive base of billions of users to boost its latest innovations and stay ahead in the tech industry’s high-stakes battle for artificial intelligence dominance.

    Touting a “relentless” pace of AI innovation, Sundar Pichai, the CEO of Google parent company Alphabet, unveiled many of the new products at the company’s I/O annual developer conference in Mountain View, Calif. Among the biggest updates, Google is rolling out its “AI mode”—a ChatGPT-like experience in Search that includes a new shopping experience and in-chat checkout. There are also improvements to its most sophisticated Gemini models; new AI capabilities in Gmail and Meet; new video and audio options; a funky AI-powered 3D communication platform called Google Beam; and a new Google AI Ultra subscription tier for a whopping $249.99/month. 

    Google is in a tight race with Facebook-parent company Meta, Microsoft, and OpenAI, spending billions to develop new AI models and build the infrastructure to power AI services.

    As a whole, the new releases show Google continuing what Google did at last year’s I/O: flexing its vast consumer distribution across a deep and broad mix of products with billions of users, as well as its research muscle with Google DeepMind. It’s a show of force that highlights Google’s key advantage: while OpenAI may lead in model innovation, it still lacks the consumer reach, product integration, and real-world distribution that Google commands.

    In the company’s press materials, Google touted its latest AI moves as “taking our cutting-edge research to reality.” And in an advance press call, Pichai said “we are now entering a new phase of the AI platform shift, where decades of research are now becoming reality for people, businesses and communities all over the world.” 

    Consumers, of course, don’t care about a “platform shift” taking place just two years after Google launched its first AI chatbot, Bard, to compete with the soaring ChatGPT. What they will likely notice in their daily lives is less about the latest model, and more the AI products and features integrated across Google apps that, according to Pichai, users are adapting to more quickly than ever. 

    For example, last year’s big research prototype at I/O was Project Astra, an AI assistant that can see things in the real world in real-time–helping a person find their missing glasses, identify items, review code, and more. Today, Google DeepMind CEO Demis Hassabis announced that the company has integrated Project Astra capabilities into Gemini Live’s screen sharing option, into Search, and has plans to bring the “eyes” of Project Astra into AR glasses. 

    Shopping is another good example of how Google’s AI is advancing its way into shifting user habits. As AI in-chat shopping picks up speed, the company announced a new “AI mode” experience that will allow consumers to find products based on complex queries like “a cute travel bag suitable for a trip to Portland, Oregon in May.” Another feature would let users upload a picture of themselves and see how different dresses would look on them, while a checkout option would provide price-tracking and single-click checkout within a chat. 

    Google’s decades-long search dominance is an advantage here: After all, Google has its product graph–a massive proprietary map of products, brands, features, categories, reviews, prices, availability, and relationships between items—that it can build on. 

    In the advance call with the press, Vidhya Srinivasan, VP and general manager of ads and commerce at Google, said that the information – price, color, availability – is fresh and updated every hour. “That means users get information they can trust and information that is accurate.” 

    OpenAI’s ChatGPT has become a default AI entry point for millions, but the vast array of Google’s product announcements shows how the sheer scale of all things Google can give people a place to figure out how AI works for them. The ultimate vision, for which Google believes it has all the necessary pieces, is a personalized, proactive AI assistant that “knows” you, but which you can control across the range of apps you use every day.

    Answering a question about what the biggest AI breakthrough is this year for consumers, Pichai said the magic in Google’s new features is that it’s getting to the point that people don’t know or care whether something is AI–just that it works in a natural, intuitive way. 

    “People just intuitively adapt to the power of what’s possible,” he said. “They don’t necessarily process it as AI or not.”

    This story was originally featured on Fortune.com