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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

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    Be serious, conservatives. ‘Wokeness’ didn’t cause Silicon Valley Bank’s demise | Tayo Bero

    You’d think that witnessing the second-biggest bank failure in US history would be a sobering moment. Since Silicon Valley Bank collapsed on Friday amid a bank run, however, Republicans have instead been twisting themselves into inelegant pretzels to blame “wokeness” for the financial disaster.For context, SVB – which before it collapsed was the 16th largest bank in the US and worth more than $200bn in assets – proudly reported that aside from 45% of its board being women, it also had “1 Black”, “1 LGBTQ+” and “2 Veterans”. According to Republicans, the bank’s focus on “woke” ideals is what led to its ultimate demise.“This bank, they’re so concerned with DEI and politics and all kinds of stuff, I think that really diverted from them focusing on their core mission,” the Florida governor Ron DeSantis told Fox News’s Maria Bartiromo.And according to Donald Trump, Jr: “SVB is what happens when you push a leftist/woke ideology and have that take precedent over common sense business practices. This won’t be the last failure of this nature so long as people are rewarded for pushing this bs.”This is a ridiculous and senseless leap, even for the right. “Wokeness” has gone from being a hamfisted shorthand for progressive overreach to a convenient – if lazy and illogical – explanation for every catastrophe.Of course, the actual circumstances that led to the collapse of SVB are of no importance here. Republicans have said little about the higher interest rates brought on by inflation anxiety and bad government bonds that helped SVB speed toward collapse.They’ve also refused to acknowledge that, as James Downie writes in MSNBC, “SVB might still be around today but for deregulation signed by former President Donald Trump that was supported almost unanimously by Republicans (and even some Democrats).”Look, it’s not easy to decide who deserves sympathy, or the opposite, in this moment. Nobody wants to “side” with a sinking Silicon Valley institution – we’re supposed to be eating the rich, remember? Still, it’s important to remember that while politicians spin this disaster, workers suffer. Americans will probably go without paychecks; some won’t have have jobs when this shakes out.According to The Verge, “Some people already know their paychecks will be [disrupted]; a payroll service company called Rippling had to tell its customers that some paychecks weren’t coming on time because of the SVB collapse.”Most of those people aren’t high-flying Silicon Valley tech founders. For some of these workers, money for rent, groceries, mortgage payments, childcare and other essentials simply isn’t coming.The right has always been contemptuous of corporate solidarity with marginalized people, so their disdain for SVB’s messaging is unsurprising. In a line that truly sounds like something out of an SNL sketch, Home Depot co-founder Bernie Marcus recently claimed on Fox News that SVB collapsed because the bank was overly concerned with global warming.“I feel bad for all of these people that lost all their money in this woke bank,” he said. “It’s depressing to me. Who knows whether the justice department would go after them? They’re a woke company, so I guess not. And they’ll probably get away with it.”The New York Post is also toeing the party line, accusing the bank’s head of risk management of wasting time in “spearheading multiple ‘woke’ LGBTQ+ programs, including a ‘safe space’ for coming-out stories”, even as “the firm raced toward collapse”.God forbid a financial institution be concerned with anything that even remotely falls outside their mandate of self-enrichment.SVB was a part of a Silicon Valley economic machine that has helped drive the tech industry’s success for decades. Initial reporting suggests that shoddy practices at the bank brought about its collapse; either way, that doesn’t change the essentially sad story here.As institutions continue to crumble under the weight of shaky policy and a volatile economy, it’s the people at the very bottom of that food chain who will suffer the most. That’s not because of “wokeness”. It’s just called capitalism.
    Tayo Bero is a Guardian US contributing writer More

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    America’s billionaire class is funding anti-democratic forces | Robert Reich

    America’s billionaire class is funding anti-democratic forcesRobert ReichBillionaire donors are pushing an unsettling agenda for America – backing Trump’s lie that the 2020 election was stolen, calling for restrictions on voting and even questioning the value of democracy itself Decades ago, America’s monied interests bankrolled a Republican establishment that believed in fiscal conservatism, anti-communism and constitutional democracy.Today’s billionaire class is pushing a radically anti-democratic agenda for America – backing Trump’s lie that the 2020 election was stolen, calling for restrictions on voting and even questioning the value of democracy.Peter Thiel, the billionaire tech financier who is among those leading the charge, once wrote, “I no longer believe that freedom and democracy are compatible.”Thiel is using his fortune to squelch democracy. He donated $15m to the successful Republican Ohio senatorial primary campaign of JD Vance, who alleges that the 2020 election was stolen and that Biden’s immigration policy has meant “more Democrat voters pouring into this country.”Thiel has donated at least $10m to the Arizona Republican primary race of Blake Masters, who also claims Trump won the 2020 election and admires Lee Kuan Yew, the authoritarian founder of modern Singapore.The former generation of wealthy conservatives backed candidates like Barry Goldwater, who wanted to conserve American institutions.Thiel and his fellow billionaires in the anti-democracy movement don’t want to conserve much of anything – at least not anything that occurred after the 1920s, which includes Social Security, civil rights, and even women’s right to vote. As Thiel wrote:
    The 1920s were the last decade in American history during which one could be genuinely optimistic about politics. Since 1920, the vast increase in welfare beneficiaries and the extension of the franchise to women – two constituencies that are notoriously tough for libertarians – have rendered the notion of “capitalist democracy” into an oxymoron.
    Rubbish. If “capitalist democracy” is becoming an oxymoron, it’s not because of public assistance or because women got the right to vote. It’s because billionaire capitalists like Thiel are drowning democracy in giant campaign donations to authoritarian candidates who repeat Trump’s big lie.Not incidentally, the 1920s marked the last gasp of the Gilded Age, when America’s rich ripped off so much of the nation’s wealth that the rest had to go deep into debt both to maintain their standard of living and to maintain overall demand for the goods and services the nation produced.When that debt bubble burst in 1929, we got the Great Depression.It was also the decade when Benito Mussolini and Adolf Hitler emerged to create the worst threats to freedom and democracy the modern world had ever witnessed.If freedom is not compatible with democracy, what is it compatible with?Last Tuesday night, Doug Mastriano, a January 6 insurrectionist and Trump-backed big lie conspiracy theorist, won the Republican nomination for governor of Pennsylvania (the fourth largest state in the country, and the biggest state that flipped from 2016 to 2020). Mastriano was directly involved in a scheme to overturn the 2020 election by sending an “alternate” slate of pro-Trump electors to the electoral college – despite the fact that Trump lost Pennsylvania by more than 80,000 votes.If Mastriano wins in November, he will appoint Pennsylvania’s secretary of state, who will oversee the 2024 election results in one of the most important battleground states in the country.Meanwhile, the major annual event of the Conservative Political Action Conference (Cpac) – the premier convening organization of the American political right – was held this past week in Budapest.That’s no accident. The Hungarian prime minister Viktor Orbán and his ruling Fidesz party have become a prominent source of inspiration for America’s anti-democracy movement. Steve Bannon, Trump’s former adviser, describes Orbán’s agenda as that of a “Trump before Trump”.Orbán has used his opposition to immigration, LGBTQ+ rights, abortion and religions other than Christianity as cover for his move toward autocracy – rigging Hungary’s election laws so his party stays in power, capturing independent agencies, controlling the judiciary and muzzling the press.He remains on good terms with Vladimir Putin and has refused to agree to Europe’s proposed embargo of Russian oil.Tucker Carlson – Fox News’s progenitor of white replacement theory – broadcast his show from Budapest. Trump spoke remotely. Trump’s former chief of staff Mark Meadows also spoke (although he refuses to speak to the House committee investigating the January 6 assault on American democracy).If America and the world should have learned anything from the first Gilded Age and the fascism that began growing like a cancer in the 1920s, it’s that gross inequalities of income and wealth fuel gross inequalities of political power – which in turn lead to strongmen who destroy both democracy and freedom.Peter Thiel may define freedom as the capacity to amass extraordinary wealth without paying taxes on it, but most of us define it as living under the rule of law with rights against arbitrary authority and a voice in what is decided.If we want to guard what is left of our freedom, we will need to meet today’s anti-democracy movement with a bold pro-democracy movement that protects the institutions of self-government from authoritarian strongmen like Trump and his wannabes, and from big money like Peter Thiel’s.
    Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
    TopicsUS politicsOpinionRepublicansSilicon ValleyPeter ThielcommentReuse this content More

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    Dignity in a Digital Age review: a congressman takes big tech to task

    Dignity in a Digital Age review: a congressman takes big tech to taskRo Khanna represents Silicon Valley and the best of Capitol Hill and wants to help. His aims are ambitious, his book necessary Just on the evidence of his new book, Ro Khanna is one of the broadest, brightest and best-educated legislators on Capitol Hill. A graduate of the University of Chicago and Yale Law School who represents Silicon Valley, he is by far the most tech-savvy member of Congress.Silicon Holler: Ro Khanna says big tech can help heal the US heartlandRead moreAt this very dark moment for American democracy, this remarkable son of Indian immigrants writes with the optimism and idealism of a first-generation American who still marvels at the opportunities he has had.Even more remarkable for a congressman whose district includes Apple, Google, Intel and Yahoo, Khanna is one of the few who refuses to take campaign money from political action committees.Once or twice in a “heated basketball game” in high school, he writes, someone may have shouted “go back to India!” But what Khanna mostly remembers about his childhood are neighbors in Pennsylvania’s Bucks county who taught him “to believe that dreams are worth pursuing in America, regardless of one’s name or heritage”.His book is bulging with ideas about how to transform big tech from a huge threat to liberty into a genuine engine of democracy. What he is asking for is almost impossibly ambitious, but he never sounds daunted.“Instead of passively allowing tech royalty and their legions to lead the digital revolution and serve narrow financial ends before all others,” he writes, “we need to put it in service of our broader democratic aspirations. We need to steer the ship [and] call the shots.”The story of tech is emblematic of our time of singular inequality, a handful of big winners on top and a vast population untouched by the riches of the silicon revolution. Khanna begins his book with a barrage of statistics. Ninety percent of “innovation job growth” in recent decades has been in five cities while 50% of digital service jobs are in just 10 major metro centers.Most Americans “are disconnected from the wealth generation of the digital economy”, he writes, “despite having their industries and … lives transformed by it”.A central thesis is that no person should be forced to leave their hometown to find a decent job. There is one big reason for optimism about this huge aspiration: the impact of Covid. Practically overnight, the pandemic “shattered” conventional wisdom “about tech concentration”. Suddenly it was obvious that high-speed broadband allowed “millions of jobs to be done anywhere in the nation”.The willingness of millions of Americans to leave big city life is confirmed by red-hot real estate markets in far flung towns and villages – and a Harris poll that showed nearly 40% of city dwellers were willing to live elsewhere.“The promise is of new jobs without sudden cultural displacement,” Khanna writes.He suggests a range of incentives to spread tech jobs into rural areas, including big federal investment to bring high-speed connections to the millions still without them. This is turn would make it possible to require federal contractors to have at least 10% of their workforces in rural communities.The congressman imagines nothing less than a “recentering” of “human values in a culture that prizes the pursuit of technological progress and market valuations”. A vital step in that direction would be a $5bn investment for laptops for 11 million students who don’t have them.The problems of inequality begin at the tech giants themselves. Almost 20% of computer science graduates are black or Latino but only 10% of employees of big tech companies are. Less than 3% of venture capital lands in the hands of Black or Latino entrepreneurs.If redistributing some of big tech’s gigantic wealth is one way to regain some dignity in the digital age, the other is to rein in some of the industry’s gigantic abuses. Data mining and the promotion of hate for profit are the two biggest problems. Khanna has drafted an Internet Bill of Rights to improve the situation.Throughout his book, he drops bits of evidence to suggest just how urgent it is to find a way to make the biggest companies behave better.“Algorithmic amplification” turns out to be one of the greatest evils of the modern age. After extracting huge amounts of data about users, Facebook and the other big platforms “push sensational and divisive content to susceptible users based on their profiles”.An internal discussion at Facebook revealed that “64% of all extremist group joins are due to our recommendations”. The explosion of the bizarre QAnon is one of Facebook’s most dubious accomplishments. In the three years before it finally banned it in 2020, “QAnon groups developed millions of followers as Facebook’s algorithm encouraged people to join based on their profiles. Twitter also recommended Qanon tweets”. The conspiracy theory was “actively recommended” on YouTube until 2019.And then there is the single greatest big tech crime against humanity. According to Muslim Advocates, a Washington-based civil rights group, the Buddhist junta in Myanmar used Facebook and WhatsApp to plan the mass murder of Rohingya Muslims. The United Nations found that Facebook played a “determining role” in events that led to the murder of at least 25,000 and the displacement of 700,000.The world would indeed be a much better place if it adopted Khanna’s recommendations. But the question Khanna is too optimistic to ask may also be the most important one.Have these companies already purchased too much control of the American government for any fundamental change to be possible?
    Dignity in a Digital Age: Making Tech Work For All Of Us is published in the US by Simon & Schuster
    TopicsBooksSilicon ValleyDemocratsUS politicsUS CongressHouse of RepresentativesUS domestic policyreviewsReuse this content More