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BORN TO SCROLL

Nearly 40% of kids under 2 years old interact with smartphones, according to their parents

A new Pew Research study outlines just how pervasive technology use among US children has become.

Millie Giles

As parents in 2025 know, they really do grow up so fast. First words today, first Google query tomorrow. Then, before you know it, they’re asking ChatGPT to read them a bedtime story...

On Wednesday, Pew Research Center published a survey assessing how parents in the US with children under 12 manage their kids’ screen time, which revealed that 61% of respondents overall reported their child ever uses or interacts with smartphones — including 38% of those with children under 2 years old.

Much of this smartphone screen time is likely made up by parents streaming kid-friendly cartoons for their little ones to watch on the go: the study also found that YouTube use among children under 2 has risen sharply from 45% to 62% over the last five years. But it appears that most American toddlers only need to wait a few years before they can get devices of their very own.

Smartphones children Pew Research
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The same survey showed that almost one in four US parents overall allow their children aged 12 and under to have their own smartphones, and this ballooned to nearly 60% when just looking at kids aged 11-12 years old.

Indeed, even with statewide smartphone bans spurring an old-school iPod revival, most parents — the vast majority of whom (92%) reported being concerned about staying in contact with their children — are allowing their descendants who’ve barely hit double digits to have devices to use in their free time.

Pre-teens, post-screens

While traditional cable viewership continues to sink, TV remains the screen of choice for kids’ entertainment, permitted by 90% of parents surveyed. However, moms and dads may now be faced with a whole new hotbed of childcare worries: the study also found that some 8% of kids aged 5-12 have interacted with AI chatbots.

As an overwhelming majority of parents (80%) still harbor concerns over the harms of social media, the negative consequences of this relatively novel, extremely powerful tech for a whole cohort of young people may become even more stark in years to come — through screens or otherwise.

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Anthropic says that a group of Chinese AI startups are “distilling” their models by setting up huge numbers of fake accounts for Claude AI. In a blog post, Anthropic said that it disrupted “industrial-scale” campaigns by Chinese AI labs DeepSeek, Moonshot, and MiniMax. The company said that the group had over 16 million exchanges with Claude, after setting up 24,000 “fraudulent” accounts. Anthropic said it is developing countermeasures to prevent such attacks in the future.

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Report: OpenAI’s Stargate has been a chaotic mess

Just over a year ago, OpenAI CEO Sam Altman stood alongside President Trump, Oracle’s Larry Ellison, and SoftBank CEO Masayoshi Son to announce an ambitious $500 billion plan to build massive data centers in the US — Project Stargate.

While today an actual Stargate 1-gigawatt data center is certainly well under construction in Abilene, Texas, it turns out there wasn’t much of a plan in place at the time of the announcement, according to a new report from The Information.

The past year has been full of partner disputes, debt problems, and scuttled plans as the loosely defined project races to build the AI computing infrastructure that OpenAI is craving as competition heats up.

Per the report, OpenAI tried to build its own data centers as the project stalled, but lenders balked at funding the risky project. They eventually settled on the current plan, in which partner Oracle borrows the money and leases capacity back to OpenAI. OpenAI was still able to control the design of the facility.

The slow start for the project resulted in OpenAI missing its own goal of 10 gigawatts of AI computing capacity from Oracle and SoftBank by the end of 2025.

The past year has been full of partner disputes, debt problems, and scuttled plans as the loosely defined project races to build the AI computing infrastructure that OpenAI is craving as competition heats up.

Per the report, OpenAI tried to build its own data centers as the project stalled, but lenders balked at funding the risky project. They eventually settled on the current plan, in which partner Oracle borrows the money and leases capacity back to OpenAI. OpenAI was still able to control the design of the facility.

The slow start for the project resulted in OpenAI missing its own goal of 10 gigawatts of AI computing capacity from Oracle and SoftBank by the end of 2025.

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Ives says AI represents huge opportunity for cybersecurity firms as losses mount

Cybersecurity stocks continued to slide Monday, after Anthropic unveiled a new security feature for its AI model Friday. The company’s AI advancements have been wreaking havoc across software firms, and its latest foray appears to be doing the same to cybersecurity leaders, including CrowdStrike, Zscaler, and Cloudflare.

But similar to Dan Ives’ broader thesis on the software sell-off — which he has called “overblown,” arguing that the companies getting hit may ultimately become “core participants in the AI Revolution” — the Wedbush Securities analyst says AI is actually a positive for cybersecurity stocks.

“Anthropic going after this market with an initial tool validates our thesis that cyber security is the next frontier for the AI Revolution,” Ives wrote Monday morning, arguing that AI is elevating the risk environment — and the need for cybersecurity firms in the first place.

“AI will be a major tailwind to the cyber security sector over the coming years as protection of use cases, data, and endpoints expand markedly,” he said, adding that companies including CrowdStrike and Zscaler are well positioned to capitalize on the shift by incorporating AI into their strategies.

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Analysts slash Salesforce price targets ahead of Wednesday earnings, as narrative of AI eating its lunch persists

A number of analysts have significantly lowered their price targets for Salesforce, citing growing fears that AI workforce tools, including Anthropic’s Cowork, could threaten parts of its core business. According to reports, here are some of the recent cuts:

  • Morgan Stanley cut its price target nearly 30%, to $287 from $398.

  • Jefferies slashed its forecast 33%, to $250 from $375.

  • Barclays reduced its price target to $265 from $338.

  • Evercore ISI went to $260 from $340.

  • Last week, Citigroup also reduced its price target to $197 from $257.

Earlier this month, Wedbush Securities analyst Dan Ives offered a different view, adding Salesforce to his list of top 30 AI companies and calling the stock a “core participant” in the “AI revolution.” He described the recent software sell-off as “overblown.”

Shares of Salesforce, which reports earnings Wednesday, are down 30% year to date and 1% premarket today.

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