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      Why Google, Microsoft and Amazon Shy Away From Buying A.I. Start-Ups

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      Google, Microsoft and Amazon have made deals with A.I. start-ups for their technology and top employees, but have shied from owning the firms. Here’s why.In 2022, Noam Shazeer and Daniel De Freitas left their jobs developing artificial intelligence at Google. They said the tech giant moved too slowly. So they created Character.AI, a chatbot start-up, and raised nearly $200 million.Last week, Mr. Shazeer and Mr. De Freitas announced that they were returning to Google. They had struck a deal to rejoin its A.I. research arm, along with roughly 20 percent of Character.AI’s employees, and provide their start-up’s technology, they said.But even though Google was getting all that, it was not buying Character.AI.Instead, Google agreed to pay $3 billion to license the technology, two people with knowledge of the deal said. About $2.5 billion of that sum will then be used to buy out Character.AI’s shareholders, including Mr. Shazeer, who owns 30 percent to 40 percent of the company and stands to net $750 million to $1 billion, the people said. What remains of Character.AI will continue operating without its founders and investors.The deal was one of several unusual transactions that have recently emerged in Silicon Valley. While big tech companies typically buy start-ups outright, they have turned to a more complicated deal structure for young A.I. companies. It involves licensing the technology and hiring the top employees — effectively swallowing the start-up and its main assets — without becoming the owner of the firm.These transactions are being driven by the big tech companies’ desire to sidestep regulatory scrutiny while trying to get ahead in A.I., said three people who have been involved in such agreements. Google, Amazon, Meta, Apple and Microsoft are under a magnifying glass from agencies like the Federal Trade Commission over whether they are squashing competition, including by buying start-ups.“Large tech firms may clearly be trying to avoid regulatory scrutiny by not directly acquiring the targeted firms,” said Justin Johnson, a business economist who focuses on antitrust at Cornell University. But “these deals do indeed start to look a lot like regular acquisitions.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Elon Musk Shares Manipulated Harris Video, in Seeming Violation of X’s Policies

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      Elon Musk, the world’s richest man, has waded into one of the thorniest issues facing U.S. politics: deepfake videos.On Friday night, Mr. Musk, the billionaire owner of the social media platform X, reposted an edited campaign video for Vice President Kamala Harris that appears to have been digitally manipulated to change the spot’s voice-over in a deceptive manner.The video mimics Ms. Harris’s voice, but instead of using her words from the original ad, it has the vice president saying that President Biden is senile, that she does not “know the first thing about running the country” and that, as a woman and a person of color, she is the “ultimate diversity hire.”In addition, the clip was edited to remove images of former President Donald J. Trump and his running mate, Senator JD Vance of Ohio, and to add images of Mr. Biden. The original, unaltered ad, which the Harris campaign released on Thursday, is titled “We Choose Freedom.”The version posted on X does not contain a disclaimer, though the account that first uploaded it Friday morning, @MrReaganUSA, noted in its post that the video was a “parody.” When Mr. Musk reposted the video on his own account eight hours later, he made no such disclosure, stating only, “This is amazing,” followed by a laughing emoji.Mr. Musk’s post, which has since been viewed 98 million times, would seem to run afoul of X’s policies, which prohibit sharing “synthetic, manipulated or out-of-context media that may deceive or confuse people and lead to harm.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Google Close to Its Biggest Acquisition Ever, Despite Antitrust Scrutiny

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      The search giant’s negotiations to buy Wiz, a cybersecurity start-up, for $23 billion, come as the Biden administration has taken a hard line against consolidation in tech and other industries.Google, which became one of the world’s the most valuable companies through its search engine and other consumer internet services, is nearing its largest-ever acquisition to improve what it can offer to business customers.Google is in talks to buy Wiz, a New York-based cybersecurity start-up, according to three people with knowledge of the discussions, who were not authorized to discuss them. Wiz was last valued at $12 billion.The companies have valued the deal at roughly $23 billion, said one of the people, easily making it Google’s most expensive acquisition and nearly double what the company paid for Motorola Mobility in 2012.While a deal looks likely, talks could still fall apart, the people said.Google and Wiz did not respond to requests for comment. The Wall Street Journal earlier reported that the companies were discussing a deal.Google has moved forward with negotiations despite the possibility that regulators might try to block the deal. But the company may be willing to fight to beef up its cloud-computing division, which lags behind Amazon Web Services and Microsoft Azure.Google was sued by the Justice Department in two separate antitrust cases, one targeting its ubiquitous search engine and another seeking to break up its digital advertising-technology business. A verdict in the search case is expected this summer.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      260 McNuggets? McDonald’s Ends A.I. Drive-Through Tests Amid Errors

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      Ordering mistakes frustrated customers during nearly three years of tests. But competitors like White Castle and Wendy’s say their A.I. ordering systems have been highly accurate.In the nearly three years since McDonald’s announced that it was partnering with IBM to develop a drive-through order taker powered by artificial intelligence, videos popped up on social media showing confused and frustrated customers trying to correct comically inaccurate meals.“Stop! Stop! Stop!” two friends screamed with humorous anguish on a TikTok video as an A.I. drive-through misunderstands their order, tallying up 240, 250 and then 260 Chicken McNuggets.In other videos, the A.I. rings up a customer for nine iced teas instead of one, fails to explain why a customer could not order Mountain Dew and thought another wanted to add bacon to his ice cream.So when McDonald’s announced in a June 13 internal email, obtained by the trade publication Restaurant Business, that it was ending its partnership with IBM and shutting down its A.I. tests at more than 100 U.S. drive-throughs, customers who had interacted with the service were probably not shocked.The decision to abandon the IBM deal comes as many other businesses, including its competitors, are investing in A.I. But it exemplifies some of the challenges companies are facing as they jockey to unlock the revolutionary technology’s potential.Other fast-food companies have had success with A.I. ordering. Last year, Wendy’s formed a partnership with Google Cloud to build out its A.I. drive-through system. Carl’s Jr. and Taco John’s have hired Presto, a voice A.I. firm for restaurants. Panda Express has approximately 30 automated order takers at its windows through a partnership with the voice A.I. firm SoundHound AI.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Hey, Siri! Let’s Talk About How Apple Is Giving You an A.I. Makeover.

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      Apple, a latecomer to artificial intelligence, has struck a deal with OpenAI and developed tools to improve its Siri voice assistant, which it is set to showcase on Monday.Each June, Apple unveils its newest software features for the iPhone at its futuristic Silicon Valley campus. But at its annual developer conference on Monday, the company will shine a spotlight on a feature that isn’t new: Siri, its talking assistant, which has been around for more than a decade.What will be different this time is the technology powering Siri: generative artificial intelligence.In recent months, Adrian Perica, Apple’s vice president of corporate development, has helped spearhead an effort to bring generative A.I. to the masses, said two people with knowledge of the work, who asked for anonymity because of the sensitivity of the effort.Mr. Perica and his colleagues have talked with leading A.I. companies, including Google and OpenAI, seeking a partner to help Apple deliver generative A.I. across its business. Apple recently struck a deal with OpenAI, which makes the ChatGPT chatbot, to fold its technology into the iPhone, two people familiar with the agreement said. It was still in talks with Google as of last week, two people familiar with the conversations said.That has helped lead to a more conversational and versatile version of Siri, which will be shown on Monday, three people familiar with the company said. Siri will be powered by a generative A.I. system developed by Apple, which will allow the talking assistant to chat rather than just respond to one question at a time. Apple will market its new A.I. capabilities as Apple Intelligence, a person familiar with the marketing plan said.Apple, OpenAI and Google declined to comment. Apple’s agreement with OpenAI was previously reported by The Information and Bloomberg, which also reported the name for Apple’s A.I. system.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Google Unveils A.I. for Predicting Behavior of Human Molecules

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      The system, AlphaFold3, could accelerate efforts to understand the human body and fight disease.Artificial intelligence is giving machines the power to generate videos, write computer code and even carry on a conversation.It is also accelerating efforts to understand the human body and fight disease.On Wednesday, Google DeepMind, the tech giant’s central artificial intelligence lab, and Isomorphic Labs, a sister company, unveiled a more powerful version of AlphaFold, an artificial intelligence technology that helps scientists understand the behavior of the microscopic mechanisms that drive the cells in the human body.An early version of AlphaFold, released in 2020, solved a puzzle that had bedeviled scientists for more than 50 years. It was called “the protein folding problem.”Proteins are the microscopic molecules that drive the behavior of all living things. These molecules begin as strings of chemical compounds before twisting and folding into three-dimensional shapes that define how they interact with other microscopic mechanisms in the body.Biologists spent years or even decades trying to pinpoint the shape of individual proteins. Then AlphaFold came along. When a scientist fed this technology a string of amino acids that make up a protein, it could predict the three-dimensional shape within minutes.When DeepMind publicly released AlphaFold a year later, biologists began using it to accelerate drug discovery. Researchers at the University of California, San Francisco, used the technology as they worked to understand the coronavirus and prepare for similar pandemics. Others used it as they struggled to find remedies for malaria and Parkinson’s disease.The hope is that this kind of technology will significantly streamline the creation of new drugs and vaccines.A segment of a video from Google DeepMind demonstrating the new AlphaFold3 technology.Video by Google Deepmind“It tells us a lot more about how the machines of the cell interact,” said John Jumper, a Google DeepMind researcher. “It tells us how this should work and what happens when we get sick.”The new version of AlphaFold — AlphaFold3 — extends the technology beyond protein folding. In addition to predicting the shapes of proteins, it can predict the behavior of other microscopic biological mechanisms, including DNA, where the body stores genetic information, and RNA, which transfers information from DNA to proteins.“Biology is a dynamic system. You need to understand the interactions between different molecules and structures,” said Demis Hassabis, Google DeepMind’s chief executive and the founder of Isomorphic Labs, which Google also owns. “This is a step in that direction.”Demis Hassabis, Google DeepMind’s chief executive and the founder of Isomorphic Labs.Taylor Hill/Getty ImagesThe company is offering a website where scientists can use AlphaFold3. Other labs, most notably one at the University of Washington, offer similar technology. In a paper released on Tuesday in the scientific journal Nature, Dr. Jumper and his fellow researchers show that it achieves a level of accuracy well beyond the state of the art.The technology could “save months of experimental work and enable research that was previously impossible,” said Deniz Kavi, a co-founder and the chief executive of Tamarind Bio, a start-up that builds technology for accelerating drug discovery. “This represents tremendous promise.” More

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      Maryland Passes 2 Major Privacy Bills, Despite Tech Industry Pushback

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      One bill would require apps like Instagram and TikTok to prioritize young people’s safety and the other would restrict the collection of consumer data.The Maryland Legislature this weekend passed two sweeping privacy bills that aim to restrict how powerful tech platforms can harvest and use the personal data of consumers and young people — despite strong objections from industry trade groups representing giants like Amazon, Google and Meta.One bill, the Maryland Online Data Privacy Act, would impose wide-ranging restrictions on how companies may collect and use the personal data of consumers in the state. The other, the Maryland Kids Code, would prohibit certain social media, video game and other online platforms from tracking people under 18 and from using manipulative techniques — like auto-playing videos or bombarding children with notifications — to keep young people glued online.“We are making a statement to the tech industry, and to Marylanders, that we need to rein in some of this data gathering,” said Delegate Sara Love, a Democratic member of the Maryland House of Delegates. Ms. Love, who sponsored the consumer bill and cosponsored the children’s bill, described the passage of the two measures as a “huge” privacy milestone, adding: “We need to put up some guardrails to protect our consumers.”The new rules require approval by Gov. Wes Moore of Maryland, a Democrat, who has not taken a public stance on the measures.With the passage of the bills, Maryland joins a small number of states including California, Connecticut, Texas and Utah that have enacted both comprehensive privacy legislation and children’s online privacy or social media safeguards. But the tech industry has challenged some of the new laws.Over the last year, NetChoice, a tech industry trade group representing Amazon, Google and Meta, has successfully sued to halt children’s online privacy or social media restrictions in several states, arguing that the laws violated its members’ constitutional rights to freely distribute information.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Chinese National Accused of Stealing AI Secrets From Google

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      Linwei Ding, a Chinese national, was arrested in California and accused of uploading hundreds of files to the cloud.A Chinese citizen who recently quit his job as a software engineer for Google in California has been charged with trying to transfer artificial intelligence technology to a Beijing-based company that paid him secretly, according to a federal indictment unsealed on Wednesday.Prosecutors accused Linwei Ding, who was part of the team that designs and maintains Google’s vast A.I. supercomputer data system, of stealing information about the “architecture and functionality” of the system, and of pilfering software used to “orchestrate” supercomputers “at the cutting edge of machine learning and A.I. technology.”From May 2022 to May 2023, Mr. Ding, also known as Leon, uploaded 500 files, many containing trade secrets, from his Google-issued laptop to the cloud by using a multistep scheme that allowed him to “evade immediate detection,” according to the U.S. attorney’s office for the Northern District of California.Mr. Ding was arrested on Wednesday morning at his home in Newark, Calif., not far from Google’s sprawling main campus in Mountain View, officials said.Starting in June 2022, Mr. Ding was paid $14,800 per month — plus a bonus and company stock — by a China-based technology company, without telling his supervisors at Google, according to the indictment. He is also accused of working with another company in China.Mr. Ding openly sought funding for a new A.I. start-up company he had incorporated at an investor conference in Beijing in November, boasting that “we have experience with Google’s 10,000-card computational power platform; we just need to replicate and upgrade it,” prosecutors said in the indictment, which was unsealed in San Francisco federal court.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More