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FTC Chair Lina Khan
FTC Chair Lina Khan (Getty Images )

FTC says TikTok is "violating or are about to violate" child privacy laws

The Federal Trade Commission took the unusual step of issuing a public statement saying it had referred a complaint involving TikTok and its parent company, ByteDance, to the US Department of Justice, writing that an “investigation uncovered reason to believe named defendants are violating or are about to violate the law and that a proceeding is in the public interest.”

While it didn’t lay out the nature of the complaint, the FTC, which primarily enforces antitrust law, said the referral stemmed from an agency review of whether TikTok was in compliance with a 2019 FTC settlement between TikTok’s predecessor Musical.ly, over violations of the Children’s Online Privacy Protection Act, or COPPA, which bars companies from getting information from children under 13 years old without parental consent. The $5.7 million penalty was, at the time, the largest ever fine for COPPA violations.

In March, the Associated Press reported that the FTC was investigating TikTok’s data and security practices.

The public statement on the referral was a notable departure from the FTC’s typical approach to quietly refer matters to the Justice Department.

“Although the Commission does not typically make public the fact that it has referred a complaint, we have determined that doing so here is in the public interest,” the FTC said. “We look forward to our continued partnership with the Department of Justice in this and other matters as we advance our shared interest in protecting the American people and in enforcing the law without fear or favor.”

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Is OpenAI on its way to becoming Lyft?

Once nearly synonymous with AI, it just got surpassed in valuation by Anthropic. Now it looks like it’s also going to get beaten to the IPO starting line.

tech

Palo Alto Networks surges after it beats revenue and earnings estimates

Cybersecurity firm Palo Alto Networks jumped more than 10% in postmarket trading after reporting fiscal third-quarter results that beat analyst revenue and earnings expectations.

The company posted adjusted earnings per share of $0.85, versus the FactSet analyst consensus estimate of $0.79 on $3 billion in revenue. (Wall Street had expected $2.94 billion.)

The company also boosted its guidance for the full fiscal year. The company now expects non-GAAP EPS in the range of $3.77 to $3.79, compared to its previous projection of $3.65 to $3.70 (and analysts’ expectations of $3.68). It also forecast revenue of $11.415 billion to $11.425 billion, representing year-over-year growth of 24%, compared to previous growth expectations of 22% to 23%.

Through Tuesday’s close, the stock had risen more than 60% in the past month.

tech

Microsoft releases 7 new models, next-gen quantum chip at Build conference

Microsoft is making it clear it can stand on its own as a competitor in the AI arena.

Today at its annual Microsoft Build developer conference, the company made a flurry of announcements that move it further away from the shadow of its complicated relationship with partner OpenAI.

Among the products announced:

  • New Nvidia-powered Windows PCs: the Surface Laptop Ultra and Surface RTX Spark Dev Box.

  • Seven new homegrown AI models: MAI Image-2.5, MAI Image-2.5-Flash, MAIN Transcribe-1.5, MAI Thinking-1, MAI Voice-2, MAIN Voice-2-Flash, and MAI Code-1-Flash.

  • Majorana 2, the company’s next-gen quantum chip.

  • Microsoft Scout, an integrated always-on agent built on OpenClaw.

  • Project Solara, an AI gadget operating system.

Investors were unimpressed, however, as shares were down over 4% after the announcements.

  • New Nvidia-powered Windows PCs: the Surface Laptop Ultra and Surface RTX Spark Dev Box.

  • Seven new homegrown AI models: MAI Image-2.5, MAI Image-2.5-Flash, MAIN Transcribe-1.5, MAI Thinking-1, MAI Voice-2, MAIN Voice-2-Flash, and MAI Code-1-Flash.

  • Majorana 2, the company’s next-gen quantum chip.

  • Microsoft Scout, an integrated always-on agent built on OpenClaw.

  • Project Solara, an AI gadget operating system.

Investors were unimpressed, however, as shares were down over 4% after the announcements.

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