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    ‘Musk? He’s horrendous’: Martha Lane Fox on diversity, tech bros and International Women’s Day

    As Elon Musk grinned in the Oval Office, one of Britain’s most influential tech investors looked on in horror. “He is absolutely horrendous. I have said it multiple times: I think it is horrifying what is happening,” says Martha Lane Fox.For the British peer and ex-Twitter board member, the sight of Musk holding forth from the bully pulpit of Donald Trump’s White House shows the Silicon Valley dream has gone sour.“The richest man in the world, who can stand there alongside the president, and kind of carte blanche make jokes about how he’s carving up people’s jobs in the government. Then he can be there with a chainsaw laughing on stage…“It is really, really alarming, and I find it extremely unpleasant at a values-based level – but also, just how can we be watching this in plain sight? It makes me feel very anxious. I think it is gross.”In an interview with the Observer to mark International Women’s Day, the president of the British Chambers of Commerce (BCC) warned the diversity pushback orchestrated by Trump and his tech bro acolytes will not only damage society, but also the economy at large.Since his return to the White House, the US president has shut down all federal diversity, equity and inclusion (DEI) initiatives, while Musk’s “department of government efficiency” (Doge) is ripping up funding schemes.Some of the world’s biggest companies are following suit. Amid a wider pushback against everything from environmental targets to sustainable development, among the most prominent taking part are US finance and tech companies, including Goldman Sachs, Accenture and Amazon, while UK businesses such as GSK have also fallen in line.“He needs to be contained,” Lady Lane Fox says of Musk’s role in the rollback. “I find it extraordinary that the richest man in the world is trampling all over these things and that we still have kind of fanboying from the tech sector. It’s already been corrosive for society, and I would argue it is going to continue to be.”For businesses, she says the bottom line is that companies that take diversity seriously appeal to the widest possible employee talent pool and are better placed to target a broad range of customers. This, she adds, is about profit as much as social justice. However, she has a broader concern about the future.“The first thing, it’s financial. But the second thing, it’s about power and money – like everything, right?“If you’re looking at a sector like the digital sector, where there’s the growth in jobs, growth in opportunity – it is the growth sector in the economy. Yet you are not including a whole bunch of people in that. Then you are going to be creating inequality. Full stop. So it’s financial and it’s a question of social justice.”Given the close ties between Britain and the US, there is a view that where corporate America treads, the UK naturally follows. But there are signs that some UK businesses – and even the British operations of some US companies – are prepared to stand apart.The accountancy firm Deloitte instructed staff working on contracts for the US government to remove pronouns from their emails, while also announcing the end of its DEI programme. But its UK boss told staff its British operations remained “committed to [its] diversity goals”.“It feels as though global companies rooted in the US are making a politically motivated slight shift in emphasis and tilt, through to rowing back everything. And it does feel a bit more tempered here,” says Lane Fox.UK businesses have an opportunity to do something different, she says, which could bring financial benefits. “I think we’ll build more robust companies, attract talent and have a much better shot at building the most resilient companies of the future.”For almost three decades, Lane Fox has built a career – and multimillion-pound fortune – in tech. She made her first big money floating Lastminute.com, the online travel site co-founded alongside fellow Oxford graduate Brent Hoberman in 1998.View image in fullscreenShe joined the board of Twitter – now X – in 2016, landing herself a huge payday in Musk’s $44bn hostile takeover in 2022, before he dissolved the board and appointed himself the sole director.Seeing Musk in the Oval Office, parading his son X on his shoulders, made her question the gender divide. “Can you imagine if that was a woman? Can you imagine what that would look like? I mean, I just think the whole thing is really gross.”But while railing against Musk in a personal capacity, the BCC president does not suggest this approach is for everyone. “It is really tricky to navigate. You have a responsibility to your customers and your employees that might be different to our personal view sometimes.”Government regulation to enshrine diversity targets is also a bad idea, she says, preferring instead that companies report their progress. “Keeping it in the light, keeping up the reporting, is important – keeping up good investors, looking at the right metrics and investing in the right companies all helps.”However, not enough progress is being made. Analysis this week showed that worsening unemployment and workforce participation for women has pushed the UK behind Canada to its lowest global ranking for workplace equality among large economies in a decade.The gender pay gap has been declining slowly over time, but average pay is still 7% less for women than for men. It is a challenge Lane Fox is all too aware of. “Look at the data and it is really freaking depressing – and it is not moving,” she says.“What worries me is that it’s far too easy to find numbers that I thought we were moving on from.“In this week of International Women’s Day, we see representation at the executive level has gone back. I see progress on boards is still good at the FTSE 100 level, but bad at FTSE 250 and 350 level.“I know there will be people in the sector thinking: ‘Oh, here she goes again.’ That’s true of many women [that people think that]. But it is so important to keep making these arguments.” More

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    What does Elon Musk believe?

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    View image in fullscreenElon Musk is not a people person, as millions around the world will be able to attest after the planet’s richest man cut off food supplies, healthcare and probably even life itself to some of the most vulnerable without so much as a fore- or afterthought.Musk sees himself as a data man, wielding numbers like a machete to slash and burn his way through government waste and corruption as he leads the rightwing charge to capture the US state.Within days of Musk dispatching his minions to kick down the doors of the US Agency for International Development (USAid) and rifle through its finances, the agency was in effect out of business. Musk claimed USAid was “a criminal organisation” and full of Marxists – an assertion called “laughable” by the agency’s former administrator under George W Bush, Andrew Natsios, who describes himself as a conservative Republican.Musk didn’t care. Less than three weeks after Donald Trump’s inauguration, the head of the new “department of government efficiency” (Doge), a special group that Trump created, has built an extensive power base in Washington of a kind not seen before.Trump has given free rein to Musk to send his operatives into more than a dozen federal agencies to look for evidence of mismanagement and subversion, and to generally create chaos, outside of the usual bounds of oversight and regulation.Crucially, Musk now in effect controls the office of personnel management (OPM), which oversees federal employment. He immediately encouraged more than 2 million government workers to resign with the stated aim of forcing a few hundred thousand out the door.View image in fullscreenIt’s clear who Musk thinks should be running the country instead, from his recruitment to Doge of “special government employees” from his own companies and the wider tech industry to storm the federal citadels. They include a significant proportion of young male software engineers of the kind who tend to worship tech billionaires like Musk, including a teenager who has gone by “Big Balls” online.Few, if any, have undergone the security clearances other government workers need to access sensitive and personal information. If they had, Doge might have been discouraged from hiring another recruit from Silicon Valley, Marko Elez, who was sent into the US treasury department, where he had access to taxpayer records. Elez resigned on Thursday after the Wall Street Journal revealed he had posted racist messages on social media and defended eugenics.“Just for the record, I was racist before it was cool,” Elez wrote on X in July.He was reinstated on Friday.On the face of it, Musk is implementing Trump’s commitment to cut spending, “dismantle the deep state” and sack “rogue bureaucrats”. But his embrace of the far right, including an unrestrained endorsement of the German nationalist Alternative for Germany (AfD), and what looked to much of the world like a Nazi salute at Trump’s inauguration celebrations, has raised urgent questions about Musk’s political beliefs and how he intends to use his newfound power.As it happens, much of what Musk is doing is also good for his businesses, including scrapping regulatory bodies and curtailing the power of unions and workers. The labor board, which upholds workers’ rights, has been frozen and agencies that regulated the financial industry have either been scrapped or told to abandon key parts of their work.Musk’s politics have been eclectic. In the past, he has backed universal basic income and a tax on carbon emissions. At the same time, he has a deep dislike of trade unions and public transport because it means being around “random strangers, one of whom might be a serial killer”. He espouses a visceral hostility to diversity programmes and appears to regard those who believe in helping the less fortunate as subversive.Thrown into this mix is Musk’s fascination with the pro-natalism movement, for which he has done his bit by fathering 12 children, and his hope that one day his rocket company, SpaceX, will help them colonise Mars.Raised in South Africa under apartheid, Musk is clearly suspicious of democracy and the leaders it produces. His grandfather headed a fringe political movement in Canada in the 1930s, Technocracy Incorporated, which sought to abolish democracy in favour of government by elite technicians, but its overtones of fascism saw it banned during the second world war.Musk shows some of the same tendencies, as do other libertarian-leaning Silicon Valley billionaires unhappy with the messiness of elected government. He has spoken in support of direct democracy, where policies and other issues are decided by popular referendums rather than elected representatives.In the meantime, Musk appears happy to embrace the US version of the “strongman” ruler through the Republican right’s “unitary executive theory”, which regards the authority of the president as paramount and Congress as an impediment to the implementation of his or her will.Over the years, Musk has described himself as “not a conservative” and “politically moderate”. He backed the Democratic candidate in every presidential election going back to Barack Obama’s victory in 2008 until he soured on the party in the past few years.View image in fullscreen“In the past I voted Democrat, because they were (mostly) the kindness party. But they have become the party of division & hate, so I can no longer support them and will vote Republican. Now, watch their dirty tricks campaign against me unfold,” he wrote on X in 2022.But there were clues to other motives, including a statement that he would be voting Republican because of Joe Biden’s support for trade unions and what he regarded as insufficient Democratic backing for his companies.Not long before last year’s presidential election, Musk declared that Trump would save American democracy from Democrats trampling on individual liberties. But he kept moving ever further to the right in public, with an open embrace of racist European political leaders, including the AfD, and the promotion of claims of a “white genocide” in the country of his birth, South Africa.Musk’s biographer, Walter Isaacson, has linked his shift from Obama voter to cheerleader for the AfD to the transition of his daughter, Vivian Jenna Wilson.Wilson was 16 when she texted a relative: “Hey, I’m transgender, and my name is now Jenna. Don’t tell my dad.” The day after Wilson turned 18 in 2022, she changed her name because of “gender identity and the fact that I no longer live with or wish to be related to my biological father in any way, shape or form”.Musk told Isaacson he was sanguine about the change but then Wilson became a fervent Marxist and wouldn’t speak to him any more, a situation he described as one of the most painful of his life.“She went beyond socialism to being a full communist and thinking that anyone rich is evil,” Musk told the author.Musk blamed Wilson’s progressive Los Angeles school and said he was disturbed at the “woke mind virus” holding back America.After California passed a law barring school districts from requiring teachers to tell parents of changes to a student’s sexual orientation and gender identity, Musk announced he was moving the headquarters of his two largest companies, SpaceX and X, to Texas. He said that the law caused “massive destruction of parental rights” and put children at risk of “permanent damage”.Musk did not say that moving his companies also had significant tax advantages for himself and his businesses, which would additionally be subject to fewer climate regulations than in California.Still, his apparent anger over his daughter’s transition appears to have set in motion a broader hostility toward identity issues, and diversity, equity and inclusion (DEI) programmes, a favourite target of the Trumpian right. Musk announced that the words “cis” and “cisgender” were considered slurs on X, and he came out against pronouns, tweeting that they “suck”.In late 2022, another tweet linked Musk’s hostility toward the way people choose to identify themselves – an odd position for a man who claims to be a champion of free speech – to his anger at the Biden administration’s Covid restrictions.View image in fullscreenMusk mocked Anthony Fauci, Biden’s chief medical adviser, who was instrumental in the lockdown and other measures to contain the crisis.“My pronouns are Prosecute/Fauci,” he wrote.Some saw the tweet as evidence that Musk was now openly identifying with the far right, which defied mask regulations and stay-at-home orders and called for Fauci to be locked up for intruding on their liberties.But while Musk’s hostility toward pronouns was personal, Covid regulations touched on his businesses and net worth.Musk refused to close his Tesla factory at the height of the pandemic, claiming without evidence that “panic” over the virus would do more damage than the disease itself. He disparaged social distancing, predicted that the virus would claim few lives in the US (it eventually claimed more than 1.2 million), and described the lockdown as “fascist” and “erasing people’s freedoms”. Musk tweeted a meme comparing Canada’s prime minister, Justin Trudeau, to Hitler over his government’s Covid restrictions.Musk may have dressed up his position as a concern about people’s welfare but its immediate effect was to keep his factories rolling even if the people working in them were at greater risk of infection and death. And while Musk claimed a principled position in favour of individual liberty, he has a history of suppressing the rights of his own workers.In 2023, he said that he disagreed with the concept of trade unions.“I just don’t like anything which creates a lords-and-peasants sort of thing,” he told the New York Times Dealbook Summit. “Unions naturally try to create negativity in a company.”One reason Musk may not like unions is they tend to stand up for their members. He has faced accusations from former employees of aggressively using a secretive dispute-resolution process to fend off repeated claims of sexual and racial harassment within his companies, including accusations of women enduring a “frat house” atmosphere of groping and other abuses ignored and even perpetrated by high-level managers.Tesla has paid out millions of dollars to Black workers subjected to racial harassment.Yet, while Musk restricts the rights of his employees to seek redress from the courts, he and his companies filed at least 23 lawsuits in federal courts in the year to August 2024, according to Fortune magazine.They include a legal action by X against the Center for Countering Digital Hate over a report accusing the social network of making millions of dollars out of accounts spewing hate from “neo-Nazis, white supremacists, misogynists and spreaders of dangerous conspiracy theories”. A California judge threw out the lawsuit last year, saying it was clear the “case is about punishing the defendants for their speech”.Musk will probably spend a lot more time being frustrated by the courts. Judges have already put on hold his push for mass resignations from the civil service and placed some restrictions on Doge’s mass collection of data. Federal workers, unions and civil rights organisations are lining up a flurry of lawsuits to challenge Musk’s actions.But the courts themselves may become a target for Musk as he works to tear down the old order.Isaacson in his biography wrote that Musk once described being in “a state of war at all times” as one of his default settings.No one thinks that, so long as Trump continues to regard the billionaire as more of an asset than a liability, Musk’s thirst for power will stop at gutting federal agencies. The question is where he will launch his next offensive. More

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    Kamala’s tech ties: what is Harris’s relationship with Silicon Valley?

    About 700 wealthy Democratic supporters packed into San Francisco’s Fairmont hotel on Sunday to see Kamala Harris in her first return to the city since launching her campaign for president. Among the crowd at the fundraiser, where the cheapest tickets cost $3,300 and went up to $500,000, was a mixture of tech billionaires, executives and Silicon Valley venture capitalists who have quickly embraced the vice-president in her bid for the White House.The event, which raised more than $12m, was the latest in the Harris campaign’s outreach to tech Democrats and an extension of a relationship with Silicon Valley elites that goes back more than a decade.Harris has extensive ties to some of the tech industry’s most influential players and prolific donors, in part due to her time as California’s attorney general and later, senator. While her campaign has yet to release detailed policy positions on issues such as tech regulation, Harris’s track record has led tech executives to speculate whether she could take a friendlier approach to the industry than Joe Biden has.Among the tech industry Democrats who have promoted or contributed to the Harris campaign are former Facebook COO Sheryl Sandberg; LinkedIn co-founder Reid Hoffman, who attended the fundraiser in San Francisco, as well as philanthropist Melinda French Gates, IAC chair Barry Diller and Silicon Valley venture capitalist Ron Conway. Laurene Powell Jobs, billionaire philanthropist and former wife of Apple’s Steve Jobs, is a longtime friend and in 2013 held a fundraiser at her home for Harris. Netflix chairman Reed Hastings, who publicly called on the president to drop out after his disastrous debate performance, donated $7m to a pro-Harris Super PACac within days of her becoming the presumptive nominee.Some of these donors have arrived to Harris’s campaign with their own policies to promote, most notably Hoffman and Diller’s demands to fire Federal Trade Commission (FTC) chair Lina Khan. The FTC under Khan has taken an aggressive stance toward regulating big tech, pursuing cases against Microsoft and Amazon, which has rankled the industry. (Hoffman is a board member of Microsoft, which has been the target of FTC antitrust litigation.)Hoffman and Diller’s demands to remove Khan while donating heavily to Harris give the appearance of billionaire donors trying to sway policy for their personal benefit, despite denials from Hoffman that his contribution is in exchange for influence. Harris has yet to comment on Khan or the donations from her critics, meanwhile her campaign held an organizing event featuring Hoffman in early August following his attacks on the FTC chair.In addition to big-name donors, Harris has also received public pledges of support from hundreds of other venture capitalists and tech workers. A “VCs For Kamala” site featured more than 800 signatures from a variety of firms, while Bloomberg reported that a Tech4Kamala open letter received more than 1,200 signatures. The two groups are planning to host an event later this month.As he fights Harris, Trump forges new ties in Silicon ValleyAlthough Harris may have more vocal tech backers than Biden, the industry has also undergone a conservative shift and embrace of far-right beliefs that gives her a number of prominent opponents. A San Francisco fundraiser for Donald Trump held last month by venture capitalists David Sacks and Chamath Palihapitiya raised about $12m, while Silicon Valley power players Marc Andreessen and Ben Horowitz announced they plan to make substantial donations to the former president.JD Vance, Trump’s running mate, also ran his campaign for Ohio senator with the help of approximately $15m in contributions from tech billionaire Peter Thiel, whose venture firm briefly employed Vance in 2015. Prior to becoming a senator, Vance worked in Silicon Valley, where he plugged in to a broader network of wealthy conservatives in tech.skip past newsletter promotionafter newsletter promotionElon Musk, the world’s richest man, has openly backed Trump while promoting attacks against Harris and Democrats on his social media platform X. Musk shared a deepfake parody video on the platform last month which featured manipulated footage of Harris, in which she was made to say “I am the ultimate diversity hire.” Musk’s Grok chatbot also spread false information suggesting that Harris was ineligible to appear on the ballot in some states, prompting condemnation from Democratic lawmakers.On Monday, Musk held a more than two-hour interview with Trump in which the Tesla CEO lauded Trump and gave no pushback as Trump rehashed a variety of falsehoods and baseless election conspiracies.“Trump’s entire campaign is in service of people like Elon Musk and himself – self-obsessed rich guys who will sell out the middle class and who cannot run a livestream in the year 2024,” Joseph Costello, a Harris campaign spokesperson, said in a statement following the interview.California connections to big techAs state attorney general and then senator for California between 2010 and 2020, Harris was in office during a crucial period in the ascendance of Silicon Valley’s biggest social networks such as Facebook. Her record on legislation and litigation around tech has over the years alternatingly drawn applause from some regulation and privacy advocates and at times criticism from others that Harris didn’t attempt to rein in companies as they amassed monopolies.Harris enjoyed a fairly cozy relationship with the industry as attorney general, including developing a friendship with then Facebook COO Sandberg and participating in the PR campaign for Sandberg’s memoir Lean In. Sandberg gave the maximum legal individual contribution to her 2016 senate campaign and, according to emails acquired by HuffPost, sent Harris a message two days after that election that read “CONGRATULATIONS!!!!!!!!!!!! We need you now more than ever.” Harris did not respond.During Harris’s time as attorney general, Facebook acquired both Instagram and WhatsApp in moves that helped it expand its dominance over social media. Antitrust advocates have since criticized federal regulators and state officials for failing to more intensely investigate or block those deals, with the FTC citing the acquisitions as evidence of anticompetitive practices in its antitrust lawsuit against Facebook. Harris has tended to stay away from taking a firm stance on antitrust actions, and in 2019 gave a vague answer to a direct question from the New York Times on whether big tech companies should be broken up.View image in fullscreenAreas where Harris took a more aggressive approach toward the tech industry were online privacy and sexual abuse, choosing what’s often called “revenge porn” as her marquee issue to fight. As a senator, Harris has introduced legislation and backed initiatives to criminalize sharing nonconsensual sexual images online, an issue that has become more pertinent in recent years with the rise of sexualized deepfakes of celebrities, politicians and average citizens. Her strategy with big tech companies on the issue, Politico reported in 2019, was to take a less publicly adversarial stance and instead forge relationships with executives who could change platform policies.When Harris chose to take legal action that involved tech companies, she instead tended to focus on smaller platforms or individual incidents of cybercrime. One of Harris’s most prominent prosecutions as attorney general was against the CEO and controlling shareholders of Backpage, an adult classifieds site that Harris accused of enabling illegal sex work, abuse and human trafficking. The prosecution, which Harris has touted in campaign ads, remains controversial and was heavily opposed by sex worker activists who viewed Backpage as a means to safely vet clients and avoid working on the streets. The founder of Backpage and two executives were convicted of prostitution and money laundering charges; a federal judge acquitted them on appeal.Harris’s record as a prosecutor shows other examples she could claim show that she’s tough on tech even as she maintains close relationships with the industry’s power brokers. She threatened to sue Uber as attorney general in 2016 after the company vowed to break state laws and put driverless cars on San Francisco streets without regulatory approval. Uber ultimately relented and ended its driverless tests days later. Meanwhile, Tony West, who became Uber’s chief legal officer a year after Harris threatened legal action, is now one of her campaign’s best-connected fundraisers. He’s also her brother-in-law. More

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    Venture capitalists including Mark Cuban back Kamala Harris’s campaign

    A group of more than 100 Silicon Valley investors, including Mark Cuban, the TV host and NBA owner, and Reed Hastings, a co-founder of LinkedIn, launched a website in support of Kamala Harris.A statement said vcsforkamala.org expressed support for the presumptive Democratic presidential nominee from “venture capital investors, founders and tech leaders who pledge to vote for Kamala Harris in the 2024 election”.It added: “We spend our days looking for, investing in and supporting entrepreneurs who are building the future. We are pro-business, pro-American dream, pro-entrepreneurship, and pro-technological progress.”The statement did not name the Republican nominee, Donald Trump, or running mate JD Vance.But it pointed to Democratic concerns about the former US president’s and the Ohio senator’s authoritarian impulses on issues including immigration, crime and reproductive rights, and what a second Trump presidency might do to the US’s standing in the world.“We also believe in democracy as the backbone of our nation,” the investors said.“We believe that strong, trustworthy institutions are a feature, not a bug, and that our industry – and every other industry – would collapse without them.“That is what’s at stake in this election. Everything else, we can solve through constructive dialogue with political leaders and institutions willing to talk to us.”It is a little more than a week since Joe Biden withdrew from his re-election campaign after a disastrous debate against Trump fueled concerns that at 81, he was too old to effectively run and serve.Since then Harris, 59, has transformed the presidential race, driving $200m in fundraising with eye-catching big name endorsements including those of Mark Hamill, best known as Luke Skywalker in the Star Wars movie saga, and Jeff Bridges, aka Jeffrey “The Dude” Lebowski.The arrival of VCs for Kamala also pointed to growing rifts among the giants of Silicon Valley, where Vance worked for Peter Thiel, a leading donor to Republicans and propagator of “new right” political thought notable for its authoritarian bent.VCs for Kamala followed Tech for Kamala, an open letter seeking contributions and orchestrated by “technology leaders and innovators”.The Tech for Kamala letter said: “We acknowledge there are a few people in tech with very loud microphones who support a very different vision of the future. But as the names on this letter show, they do not at all represent the entire tech community.“In Vice-President Harris, we choose the future over the past, stability over chaos, a hopeful America with expanded opportunity over an extreme agenda that drags us backward.”On Wednesday, Leslie Feinzaig, founder of the venture capital firm Graham & Walker and a lead organiser of VCs for Kamala, told the New York Times that rightwing, pro-Trump tech moguls such as Thiel, David Sacks and Elon Musk “don’t speak for me”.“They don’t speak for most of us,” she added. “And they don’t speak for the founders.” More

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    Silicon Valley wants unfettered control of the tech market. That’s why it’s cosying up to Trump | Evgeny Morozov

    Hardly a week passes without another billionaire endorsing Donald Trump. With Joe Biden proposing a 25% tax on those with assets over $100m (£80m), this is no shock. The real twist? The pro-Trump multimillionaire club now includes a growing number of venture capitalists. Unlike hedge funders or private equity barons, venture capitalists have traditionally held progressive credentials. They’ve styled themselves as the heroes of innovation, and the Democrats have done more to polish their progressive image than anyone else. So why are they now cosying up to Trump?Venture capitalists and Democrats long shared a mutual belief in techno-solutionism – the idea that markets, enhanced by digital technology, could achieve social goods where government policy had failed. Over the past two decades, we’ve been living in the ruins of this utopia. We were promised that social media could topple dictators, that crypto could tackle poverty, and that AI could cure cancer. But the progressive credentials of venture capitalists were only ever skin deep, and now that Biden has adopted a tougher stance on Silicon Valley, VCs are more than happy to support Trump’s Republicans.The Democrats’ romance with techno-solutionism began in the early 1980s. Democrats saw Silicon Valley as the key to boosting environmentalism, worker autonomy and global justice. Venture capitalists, as the financial backers of this new and apparently benign form of capitalism, were crucial to this vision. Whenever Republicans pushed for measures favourable to the VC industry – such as changes in capital gains tax, or the liberalisation of pension fund legislation – Democrats eventually acquiesced. On issues such as intellectual property, Democrats have actively advanced the industry’s agenda.This alliance has shaped how the US now finances innovation. Public institutions such as the National Science Foundation and National Institutes of Health fund basic science, while venture capitalists finance the startups that commercialise it. These startups, in turn, build on intellectual property licensed from recipients of public grants to design apps, gadgets and drugs. A good chunk of these profits, naturally, flows back to the venture capitalists who own a stake in these startups. Thanks to this model, Americans now pay some of the highest drug prices in the world – yet when politicians have tried to curb these egregious outcomes, they have been met with accusations from the VC industry that they’re undermining progress.Venture capitalists have been keen to emphasise the role they play in delivering progress. Through podcasts, conferences and publications, they have successfully recast their interests as those of humanity at large. For a clear distillation of this worldview, look no further than The Techno-Optimist Manifesto, a 5,200-word treatise by Marc Andreessen, co-founder of the VC firm Andreessen Horowitz. Its jarring universalism suggests that all of us – San Francisco’s venture capitalists and homeless alike – are in this together. Andreessen urges readers to join venture capitalists as “allies in the pursuit of technology, abundance, and life”. Yet his text quickly reveals its true colours. “Free markets,” he writes, “are the most effective way to organise a technological economy.” (Andreessen has criticised Biden without endorsing Trump.)Andreessen isn’t celebrating technology in the abstract, but promoting what he calls the “techno-capital machine”. This system allows investors like him to reap most of the rewards of innovation, while steering its direction so that alternative models to Silicon Valley hegemony never achieve the kind of take-up that would allow them to drive out for-profit solutions. Andresseen, like all VCs, never stops to consider that a more effective technological economy might not revolve around free markets at all. How can VCs be so sure that we wouldn’t get a better kind of generative AI, or less destructive social media platforms, by treating data as a collective good?View image in fullscreenThe tragedy is that we won’t be trying anything like this any time soon. We’re shackled by a worldview that has fooled us into thinking there is no alternative to a system that relies on poorly paid workers in the global south to assemble our devices and moderate our content, and that consumes unsustainable volumes of energy to train AI models and mine bitcoin. Even the idea that social media might promote democracy has now been abandoned; instead, tech leaders seem more concerned with evading responsibility for the role their platforms have played in subverting democracy and fanning the flames of genocide.Where do we find the much-needed alternative? While researching my latest podcast, A Sense of Rebellion, I stumbled on a series of debates that took place in the 1970s and pointed in the right direction. Back then, a small group of hippy radicals were advocating for “ecological technology” and “counter-technology”. They weren’t satisfied with merely making existing tools more accessible and transparent: they saw technology as the product of power relations, and wanted to fundamentally alter the system itself. I came across a particularly compelling example of this thinking in a quirky 1971 manifesto published in Radical Software, a small but influential magazine. Its author was anonymous, and signed themselves as “Aquarius Project”, listing only a Berkeley-based postal box. I eventually tracked them down, partly because the points they made in that manifesto are so often lost in today’s debates about Silicon Valley. “‘Technology’ does nothing, creates no problems, has no ‘imperatives’,” they wrote. “Our problem is not ‘Technology’ in the abstract, but specifically capitalist technology.”Being hippies, the group struggled to translate these insights into policy demands. In fact, somebody else had done this three decades earlier. In the late 1940s, the Democratic senator Harley Kilgore saw the dangers of postwar science becoming “the handmaiden for corporate or industrial research”. He envisioned a National Science Foundation (NSF) governed by representatives from unions, consumers, agriculture and industry to ensure technology served social needs and remained in democratic control. Corporations would be forced to share their intellectual property (IP) if they built on public research, and would be prevented from becoming the sole providers of “solutions” to social problems. Yet with its insistence on democratic oversight and sharing IP riches, his model was eventually defeated.Instead, our prevailing approach to innovation has allowed scientists to set their priorities, and does not require companies that benefit from public research to share their IP. As Biden’s Chips Act directs $81bn to the NSF, we must now question if this approach still makes sense. Shouldn’t democratic decision-making guide how this money is spent? And what about the IP created? How much will end up enriching venture capitalists? Similar questions arise with data and AI. Should big tech firms be allowed to use data from public institutions to train privately owned, lucrative AI models? Why not make the data accessible to nonprofits and universities? Why should companies such as OpenAI, backed by venture capital, dominate this space?Today’s AI gold rush is inefficient and irrational. A single, authoritative, publicly owned curator of the data and models behind generative AI could do a better job, saving money and resources. It could charge corporations for access, while providing cheaper access to public media organisations and libraries. Yet the merchants of Silicon Valley are taking us in the opposite direction. They are obsessed with accelerating Andreessen’s “techno-capital machine”, which relies on detaching markets and technologies from democratic control. And, with Trump in the White House, they’ll waste no time repurposing their tools to serve authoritarianism as easily as they served the neoliberal agendas of his Democratic predecessors.Biden and his allies should recognise venture capitalists as a problem, not a solution. The sooner progressive forces get over their fascination with Silicon Valley, the better. This won’t be enough, though: to build a truly progressive techno-public machine, we need to rethink the relationship between science and technology on the one hand and democracy and equality on the other. If that means reopening old, seemingly settled debates, so be it.
    Evgeny Morozov is the author of several books on technology and politics. His latest podcast, A Sense of Rebellion, is available now
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    Sam Bankman-Fried funded a group with racist ties. FTX wants its $5m back

    Multiple events hosted at a historic former hotel in Berkeley, California, have brought together people from intellectual movements popular at the highest levels in Silicon Valley while platforming prominent people linked to scientific racism, the Guardian reveals.But because of alleged financial ties between the non-profit that owns the building – Lightcone Infrastructure (Lightcone) – and jailed crypto mogul Sam Bankman-Fried, the administrators of FTX, Bankman-Fried’s failed crypto exchange, are demanding the return of almost $5m that new court filings allege were used to bankroll the purchase of the property.During the last year, Lightcone and its director, Oliver Habryka, have made the $20m Lighthaven Campus available for conferences and workshops associated with the “longtermism”, “rationalism” and “effective altruism” (EA) communities, all of which often see empowering the tech sector, its elites and its beliefs as crucial to human survival in the far future.At these events, movement influencers rub shoulders with startup founders and tech-funded San Francisco politicians – as well as people linked to eugenics and scientific racism.Since acquiring the Lighthaven property – formerly the Rose Garden Inn – in late 2022, Lightcone has transformed it into a walled, surveilled compound without attracting much notice outside the subculture it exists to promote.But recently filed federal court documents allege that in the months before the collapse of Sam Bankman-Fried’s FTX crypto empire, he and other company insiders funnelled almost $5m to Lightcone, including $1m for a deposit to lock in the Rose Garden deal.FTX bankruptcy administrators say that money was commingled with funds looted from FTX customers. Now, they are asking a judge to give it back.The revelations cast new light on so-called “Tescreal” intellectual movements – an umbrella term for a cluster of movements including EA and rationalism that exercise broad influence in Silicon Valley, and have the ear of the likes of Sam Altman, Marc Andreessen and Elon Musk.It also raises questions about the extent to which people within that movement continue to benefit from Bankman-Fried’s fraud, the largest in US history.The Guardian contacted Habryka for comment on this reporting but received no response.Controversial conferencesLast weekend, Lighthaven was the venue for the Manifest 2024 conference, which, according to the website, is “hosted by Manifold and Manifund”.Manifold is a startup that runs Manifund, a prediction market – a forecasting method that was the ostensible topic of the conference.Prediction markets are a long-held enthusiasm in the EA and rationalism subcultures, and billed guests included personalities like Scott Siskind, AKA Scott Alexander, founder of Slate Star Codex; misogynistic George Mason University economist Robin Hanson; and Eliezer Yudkowsky, founder of the Machine Intelligence Research Institute (Miri).Billed speakers from the broader tech world included the Substack co-founder Chris Best and Ben Mann, co-founder of AI startup Anthropic.Alongside these guests, however, were advertised a range of more extreme figures.One, Jonathan Anomaly, published a paper in 2018 entitled Defending Eugenics, which called for a “non-coercive” or “liberal eugenics” to “increase the prevalence of traits that promote individual and social welfare”. The publication triggered an open letter of protest by Australian academics to the journal that published the paper, and protests at the University of Pennsylvania when he commenced working there in 2019. (Anomaly now works at a private institution in Quito, Ecuador, and claims on his website that US universities have been “ideologically captured”.)Another, Razib Khan, saw his contract as a New York Times opinion writer abruptly withdrawn just one day after his appointment had been announced, following a Gawker report that highlighted his contributions to outlets including the paleoconservative Taki’s Magazine and anti-immigrant website VDare.The Michigan State University professor Stephen Hsu, another billed guest, resigned as vice-president of research there in 2020 after protests by the MSU Graduate Employees Union and the MSU student association accusing Hsu of promoting scientific racism.Brian Chau, executive director of the “effective accelerationist” non-profit Alliance for the Future (AFF), was another billed guest. A report last month catalogued Chau’s long history of racist and sexist online commentary, including false claims about George Floyd, and the claim that the US is a “Black supremacist” country. “Effective accelerationists” argue that human problems are best solved by unrestricted technological development.Another advertised guest, Michael Lai, is emblematic of tech’s new willingness to intervene in Bay Area politics. Lai, an entrepreneur, was one of a slate of “Democrats for Change” candidates who seized control of the powerful Democratic County Central Committee from progressives, who had previously dominated the body that confers endorsements on candidates for local office.In a phone interview, Lai said he did not attend the Manifest conference in early June. “I wasn’t there, and I did not know about what these guys believed in,” Lai said. He also claimed to not know why he was advertised on the manifest.is website as a conference-goer, adding that he had been invited by Austin Chen of Manifold Markets. In an email, Chen, who organized the conference and is a co-founder of Manifund, wrote: “We’d scheduled Michael for a talk, but he had to back out last minute given his campaigning schedule.“This kind of thing happens often with speakers, who are busy people; we haven’t gotten around to removing Michael yet but will do so soon,” Chen added.On the other speakers, Chen wrote in an earlier email: “We were aware that some of these folks have expressed views considered controversial.”He went on: “Some of these folks we’re bringing in because of their past experience with prediction markets (eg [Richard] Hanania has used them extensively and partnered with many prediction market platforms). Others we’re bringing in for their particular expertise (eg Brian Chau is participating in a debate on AI safety, related to his work at Alliance for the Future).”Chen added: “We did not invite them to give talks about race and IQ” and concluded: “Manifest has no specific views on eugenics or race & IQ.”Democrats for Change received significant support from Bay Area tech industry heavyweights, and Lai is now running for the San Francisco board of supervisors, the city’s governing body. He is endorsed by a “grey money” influence network funded by rightwing tech figures like David Sacks and Garry Tan. The same network poured tens of thousands of dollars into his successful March campaign for the DCCC and ran online ads in support of him, according to campaign contribution data from the San Francisco Ethics Commission.Several controversial guests were also present at Manifest 2023, also held at Lighthaven, including rightwing writer Hanania, whose pseudonymous white-nationalist commentary from the early 2010s was catalogued last August in HuffPost, and Malcolm and Simone Collins, whose EA-inspired pro-natalism – the belief that having as many babies as possible will save the world – was detailed in the Guardian last month.The Collinses were, along with Razib Khan and Jonathan Anomaly, featured speakers at the eugenicist Natal Conference in Austin last December, as previously reported in the Guardian.Daniel HoSang, a professor of American studies at Yale University and a part of the Anti-Eugenics Collective at Yale, said: “The ties between a sector of Silicon Valley investors, effective altruism and a kind of neo-eugenics are subtle but unmistakable. They converge around a belief that nearly everything in society can be reduced to markets and all people can be regarded as bundles of human capital.”HoSang added: “From there, they anoint themselves the elite managers of these forces, investing in the ‘winners’ as they see fit.”“The presence of Stephen Hsu here is particularly alarming,” HoSang concluded. “He’s often been a bridge between fairly explicit racist and antisemitic people like Ron Unz, Steven Sailer and Stefan Molyneux and more mainstream figures in tech, investment and scientific research, especially around human genetics.”FTX proceedingsAs Lighthaven develops as a hub for EA and rationalism, the new court filing alleges that the purchase of the property was partly secured with money funnelled by Sam Bankman-Fried and other FTX insiders in the months leading up to the crypto empire’s collapse.Bankman-Fried was sentenced to 25 years in prison in March for masterminding the $8bn fraud that led to FTX’s downfall in November 2022, in which customer money was illegally transferred from FTX to sister exchange Alameda Research to address a liquidity crisis.Since the collapse, FTX and Alameda have been in the hands of trustees, who in their efforts to pay back creditors are also pursuing money owed to FTX, including money they say was illegitimately transferred to others by Bankman-Fried and company insiders.On 13 May, those trustees filed a complaint with a bankruptcy court in Delaware – where FTX and Lightcone both were incorporated – alleging that Lightcone received more than $4.9m in fraudulent transfers from Alameda, via the non-profit FTX Foundation, over the course of 2022.State and federal filings indicate that Lightcone was incorporated on 13 October 2022 with Habryka acting in all executive roles. In an application to the IRS for 501(c)3 charitable status, Habryka aligned the organization with an influential intellectual current in Silicon Valley: “Combining the concepts of the Longtermism movement … and rationality … Lightcone Infrastructure Inc works to steer humanity towards a safer and better future.”California filings also state that from 2017 until the application, Lightcone and its predecessor project had been operating under the fiscal sponsorship of the Center for Applied Rationality (CFAR), a rationalism non-profit established in 2012.The main building on the property now occupied by the Lighthaven campus was originally constructed in 1903 as a mansion, and between 1979 and Lightcone’s 2022 purchase of the property, the building was run as a hotel, the Rose Garden Inn.Alameda county property records indicate that the four properties encompassed by the campus remain under the ownership of an LLC, Lightcone Rose Garden (Lightcone RG), of which Lightcone is the sole member, according to the filings. California business filings identify Habryka as the registered agent of Lightcone Infrastructure and Lightcone RG.Lightcone and CFAR both give the campus as their principal place of business in their most recent tax filings.On 2 March 2022, according to the complaint, CFAR applied to the FTX Foundation asking that “$2,000,000 be given to the Center for Applied Rationality as an exclusive grant for its project, the Lightcone Infrastructure Team”. FTX Foundation wired the money the same day.Between then and October 2022, according to trustees, the FTX Foundation wired at least 14 more transfers worth $2,904,999.61. In total, FTX’s administrators say, almost $5m was transferred to CFAR from the FTX Foundation.On 13 July and 18 August 2022, according to the complaint, the FTX Foundation also wired two payments of $500,000 each to a title company as a deposit for Lightcone RG’s purchase of the Rose Garden Inn. The complaint says these were intended as a loan but there is no evidence that the $1m was repaid.Then, on 3 October, the FTX Foundation approved a $1.5m grant to Lightcone Infrastructure, according to FTX trusteesThe complaint alleges that Lightcone got another $20m loan to fund the Rose Garden Inn purchase from Slimrock Investments Pte Ltd, a Singapore-incorporated company owned by Estonian software billionaire, Skype inventor and EA/rationalism adherent Jaan Tallinn. This included the $16.5m purchase price and $3.5m for renovations and repairs.Slimrock investments has no apparent public-facing website or means of contact. The Guardian emailed Tallinn for comment via the Future of Life Institute, a non-profit whose self-assigned mission is: “Steering transformative technology towards benefiting life and away from extreme large-scale risks.” Tallinn sits on that organization’s board. Neither Tallinn nor the Future of Life Institute responded to the request.The complaint also says that FTX trustees emailed CFAR four times between June and August 2023, and that on 31 August they hand-delivered a letter to CFAR’s Rose Garden Inn offices. All of these attempts at contact were ignored. Only after the debtors filed a discovery motion on 31 October 2023 did CFAR engage with them.The most recent filing on 17 May is a summons for CFAR and Lightcone to appear in court to answer the complaint.The suit is ongoing.The Guardian emailed CFAR president and co-founder Anna Salamon for comment on the allegations but received no response. More

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    When dead children are just the price of doing business, Zuckerberg’s apology is empty | Carole Cadwalladr

    I don’t generally approve of blood sports but I’m happy to make an exception for the hunting and baiting of Silicon Valley executives in a congressional committee room. But then I like expensive, pointless spectacles. And waterboarding tech CEOs in Congress is right up there with firework displays, a brief, thrillingly meaningless sensation on the retina and then darkness.Last week’s grilling of Mark Zuckerberg and his fellow Silicon Valley Übermenschen was a classic of the genre: front pages, headlines, and a genuinely stand-out moment of awkwardness in which he was forced to face victims for the first time ever and apologise: stricken parents holding the photographs of their dead children lost to cyberbullying and sexual exploitation on his platform.Less than six hours later, his company delivered its quarterly results, Meta’s stock price surged by 20.3% delivering a $200bn bump to the company’s market capitalisation and, if you’re counting, which as CEO he presumably does, a $700m sweetener for Zuckerberg himself. Those who listened to the earnings call tell me there was no mention of dead children.A day later, Biden announced, “If you harm an American, we will respond”, and dropped missiles on more than 80 targets across Syria and Iraq. Sure bro, just so long as the Americans aren’t teenagers with smart phones. US tech companies routinely harm Americans, and in particular, American children, though to be fair they routinely harm all other nationalities’ children too: the Wall Street Journal has shown Meta’s algorithms enable paedophiles to find each other. New Mexico’s attorney general is suing the company for being the “largest marketplace for predators and paedophiles globally”. A coroner in Britain found that 14-year-old Molly Jane Russell, “died from an act of self-harm while suffering from depression and the negative effects of online content” – which included Instagram videos depicting suicide.And while dispatching a crack squad of Navy Seals to Menlo Park might be too much to hope for, there are other responses that the US Congress could have mandated, such as, here’s an idea, a law. Any law. One that, say, prohibits tech companies from treating dead children as just a cost of doing business.Because demanding that tech companies don’t enable paedophiles to find and groom children is the lowest of all low-hanging fruit in the tech regulation space. And yet even that hasn’t happened yet. What America urgently needs is to act on its anti-trust laws and break up these companies as a first basic step. It needs to take an axe to Section 230, the law that gives platforms immunity from lawsuits for hosting harmful or illegal content.It needs basic product safety legislation. Imagine GlaxoSmithKline launched an experimental new wonder drug last year. A drug that has shown incredible benefits, including curing some forms of cancer and slowing down ageing. It might also cause brain haemorrhages and abort foetuses, but the data on that is not yet in so we’ll just have to wait and see. There’s a reason that doesn’t happen. They’re called laws. Drug companies go through years of testing. Because they have to. Because at some point, a long time ago, Congress and other legislatures across the world did their job.Yet Silicon Valley’s latest extremely disruptive technology, generative AI, was released into the wild last year without even the most basic federally mandated product testing. Last week, deep fake porn images of the most famous female star on the planet, Taylor Swift, flooded social media platforms, which had no legal obligation to take them down – and hence many of them didn’t.But who cares? It’s only violence being perpetrated against a woman. It’s only non-consensual sexual assault, algorithmically distributed to millions of people across the planet. Punishing women is the first step in the rollout of any disruptive new technology, so get used to that, and if you think deep fakes are going to stop with pop stars, good luck with that too.You thought misinformation during the US election and Brexit vote in 2016 was bad? Well, let’s wait and see what 2024 has to offer. Could there be any possible downside to releasing this untested new technology – one that enables the creation of mass disinformation at scale for no cost – at the exact moment in which more people will go to the polls than at any time in history?You don’t actually have to imagine where that might lead because it’s already happened. A deep fake targeting a progressive candidate dropped days before the Slovakian general election in October. It’s impossible to know what impact it had or who created it, but the candidate lost, and the opposition pro-Putin candidate won. CNN reports that the messaging of the deepfake echoed that put out by Russia’s foreign intelligence service, just an hour before it dropped. And where was Facebook in all of this, you ask? Where it usually is, refusing to take many of the deep fake posts down.Back in Congress, grilling tech execs is something to do to fill the time in between the difficult job of not passing tech legislation. It’s now six years since the Cambridge Analytica scandal when Zuckerberg became the first major tech executive to be commanded to appear before Congress. That was a revelation because it felt like Facebook might finally be brought to heel.But Wednesday’s outing was Zuckerberg’s eighth. And neither Facebook, nor any other tech platform, has been brought to heel. The US has passed not a single federal law. Meanwhile, Facebook has done some exculpatory techwashing of its name to remove the stench of data scandals and Kremlin infiltration and occasionally offers up its CEO for a ritual slaughtering on the Senate floor.To understand America’s end-of-empire waning dominance in the world, its broken legislature and its capture by corporate interests, the symbolism of a senator forcing Zuckerberg to apologise to bereaved parents while Congress – that big white building stormed by insurrectionists who found each other on social media platforms – does absolutely nothing to curb his company’s singular power is as good as any place to start.We’ve had eight years to learn the lessons of 2016 and yet here we are. Britain has responded by weakening the body that protects our elections and degrading our data protection laws to “unlock post-Brexit opportunities”. American congressional committees are now a cargo cult that go through ritualised motions of accountability. Meanwhile, there’s a new tech wonder drug on the market that may create untold economic opportunities or lethal bioweapons and the destabilisation of what is left of liberal democracy. Probably both. Carole Cadwalladr is a reporter and feature writer for the Observer More

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    Republicans attack FTC chair and big tech critic Lina Khan at House hearing

    Lina Khan, the chair of the Federal Trade Commission, faced a grueling four hours of questioning during a House judiciary committee oversight hearing on Thursday.Republicans criticized Khan – an outspoken critic of big tech – for “mismanagement” and for “politicizing” legal action against large companies such as Twitter and Google as head of the powerful antitrust agency.In his opening statement, committee chair Jim Jordan, an Ohio Republican, said Khan has given herself and the FTC “unchecked power” by taking aggressive steps to regulate practices at big tech companies such as Twitter, Meta and Google.He said Khan carried out “targeted harassment against Twitter” by asking for all communications related to Elon Musk, including conversations with journalists, following Musk’s acquisition because she does not share his political views.Khan, a former journalist, said the company has “a history of lax security and privacy policies” that did not begin with Musk.Other Democrats agreed. “Protecting user privacy is not political,” said congressman Jerry Nadler, a Democrat of New York, in response to Jordan’s remarks.Republicans also condemned Khan for allegedly wasting government money by pursuing more legal action to prevent mergers than her predecessors – but losing. On Tuesday, a federal judge ruled against the FTC’s bid to delay Microsoft from acquiring video game company Activision Blizzard, saying the agency failed to prove it would decrease competition and harm consumers. The FTC is appealing against that ruling.“She has pushed investigations to burden parties with vague and costly demands without any substantive follow-through, or, frankly, logic, for the requests themselves,” said Jordan.Another Republican member, Darrell Issa, of California, called Khan a “bully” for trying to prevent mergers.“I believe you’ve taken the idea that companies should have to be less competitive in order to merge, [and] that every merger has to be somehow bad for the company and good for the consumer – a standard that cannot be met,” Issa said.Khan earlier came under scrutiny from Republicans participating in an FTC case reviewing Meta’s bid to acquire a virtual reality company despite a recommendation from an ethics official to recuse herself. She defended her decision to remain on the case Thursday, saying she consulted with the ethics official. Khan testified she had “not a penny” in the company’s financial stock and thus did not violate ethics laws.But enforcing antitrust laws for big tech companies such as Twitter has traditionally been a bipartisan issue.“It’s a little strange that you have this real antipathy among the Republicans of Lina Khan, who in many ways is doing exactly what the Republicans say needs to be done, which is bringing a lot more antitrust scrutiny of big tech,” said Daniel Crane, a professor on antitrust law and enforcement at the University of Michigan Law School.“There’s a broad consensus that we need to do more, but that’s kind of where the agreement ends,” he said.Republicans distrust big tech companies over issues of censorship, political bias and cultural influence, whereas Democrats come from a traditional scrutiny of corporations and concentration of economic power, said Crane.“I don’t fundamentally think she’s doing something other than what she was put in office to do,” he said.Congress has not yet passed a major antitrust statute that would be favorable to the FTC in these court battles and does not seem to be pursuing one any time soon, said Crane. “They’re just going to lose a lot of cases, and that’s foreseen.”The FTC’s list of battles with big tech companies is growing.Hours earlier on Thursday, Twitter – which now legally goes by X Corp – asked a federal court to terminate a 2011 settlement with the FTC that placed restrictions on its user data and privacy practices. Khan noted Twitter voluntarily entered into that agreement.Also on Thursday, the Washington Post reported the FTC opened an investigation in OpenAI on whether its chatbot, ChatGPT, is harmful to consumers. A spokesperson for the FTC would not comment on the OpenAI investigation but Khan said during the hearing that “it has been publicly reported”.In 2017, Khan, now 34, gained fame for an academic article she wrote as a law student at Yale that used Amazon’s business practices to explain gaps in US antitrust policy. Biden announced he intended to nominate the antitrust researcher to head the FTC in March 2021. She was sworn in that June.“Chair Khan has delivered results for families, consumers, workers, small businesses, and entrepreneurs,” White House spokesperson Michael Kikukawa said in a statement. More