
Odd Lots: The Big Gulf AI Deal That's Divided The White House
Back in May, President Trump announced this big plan whereby American tech giants would participate in major AI projects in both Saudi Arabia and the United Arab Emirates. The announcement has created divisions within The White House, and more generally among people who are thinking about the intersection of artificial intelligence and geopolitics. One argument is that this is great news geopolitically, because it gives American technology a beachhead in this crucial region. Another argument is that by exporting the chips abroad, it creates a possibility that some of the technology will leak to China, or benefit China in some way. On this episode we speak with Bloomberg reporter Mackenzie Hawkins, who covers tech and geopolitics in Hong Kong, about the deals, the divisions, and what to watch next as the US looks to maintain its edge in these key areas.
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Yahoo
17 minutes ago
- Yahoo
'No Kings Day' protest brings thousands to Iowa State Capitol to 'give voice to people.'
A crowd estimated to number around 7,000 people gathered outside the Iowa State Capitol Building on June 14 in opposition to Donald Trump's Flag Day military parade in Washington D.C., a date which also coincided with the president's 79th birthday. The Des Moines protest was just one of more than 1,800 events held worldwide, 35 of which were held in Iowa, according to a news release from Indivisible 515, one of the groups that helped organize the Des Moines event. Several other groups had a hand in helping to orchestrate the rally, including Food and Water Watch, Progress Iowa, the Party for Socialism and Liberation Iowa, Team Bernie, 50501, AFLCIO of Iowa, LULAC, and ICAN. The tagline of the event? 'No Kings Day.' The mission? 'To give voice to people who want to live in a democratic society,' said Marie Herring, one of the organizers with Indivisible 515. 'We are about pro-democracy, we are anti-corruption, and I think what we are seeing is a great deal of corruption. We have different causes, we have different things that brought us here today, but today we are rallying around the common theme of 'No Kings.'' Earlier in the week, Trump warned that protesters of the Flag Day parade would be met with violence. A few days later, on June 12, he laughed off would-be protestors, saying 'I don't feel like a king' in response to a question from a reporter in the White House. In stark contrast to the president's promises, the news release from Indivisible 515 stated that 'No Kings Day' protests were committed to being non-violent, and the protest at the Iowa State Capitol reflected that. There was a minimal police presence, but no intervention ever occurred. 'I hope people understand that we're protesting for our democracy,' said Katie Johnson, 21, from Ankeny. 'I think that America could be great if we actually followed the rules that were made for us. There's a constitution for a reason.' In Ames, a similarly peaceful crowd filled Roosevelt Park. People of all ages spanned across the park, from young children to senior citizens. Several people were carrying signs that said 'No Kings,' or ones depicting crowns that had been crossed off. Many were carrying American flags. Johnson's sentiment was one shared by many of the older protestors at the rally, though in a slightly different manner. 'I want to apologize (to our grandchildren) for screwing up so bad,' said Lynne Howard, 69, from Des Moines. 'We were hoping to leave them with a better world.' Denise Wilson, 68, from Grimes also apologized to the younger generations, saying, 'It doesn't feel good to be losing our rights. We have to take a stand now because I want (our grandchildren) to grow up in a free society like what we had, and it's going away quickly.' As the official event drew to a close, protestors began to gather along Grand Avenue, cheering with signs held high. Honking cars rushed past with flags streaming from their open windows — American flags, Palestinian flags, Mexican flags and Honduran flags, among others. Drivers and passengers alike joined in chanting with those lining the street. The overwhelming majority of protestors seemed to share in one mentality, summed up by Russell Kingsley, an 86-year-old Navy veteran from Urbandale. 'I believe in democracy and I see it slipping away,' Kingsley said. 'I want to do everything I can to stop it from sliding any further.' Ames Tribune reporter Celia Brocker contributed to this report Norah Judson is a reporter for the Register. Reach her at njudson@ This article originally appeared on Des Moines Register: 'No Kings Day' protest brings thousands to Des Moines


CNBC
18 minutes ago
- CNBC
Google, Scale AI's largest customer, plans split after Meta deal, sources say
Alphabet's Google, the largest customer of Scale AI, plans to cut ties with Scale after news broke that rival Meta is taking a 49% stake in the AI data-labeling startup, five sources familiar with the matter told Reuters. Google had planned to pay Scale AI about $200 million this year for the human-labeled training data that is crucial for developing technology, including the sophisticated AI models that power Gemini, its ChatGPT competitor, one of the sources said. The search giant already held conversations with several of Scale AI's rivals this week as it seeks to shift away much of that workload, sources added. Scale's loss of significant business comes as Meta takes a big stake in the company, valuing it at $29 billion. Scale was worth $14 billion before the deal. Scale AI intends to keep its business running while its CEO, Alexandr Wang, along with a few employees, move over to Meta. Since its core business is concentrated around a few customers, it could suffer greatly if it loses key customers like Google. In a statement, a Scale AI spokesperson said its business, which spans work with major companies and governments, remains strong, as it is committed to protecting customer data. The company declined to comment on specifics with Google. Scale AI raked in $870 million in revenue in 2024, and Google spent some $150 million on Scale AI's services last year, sources said. Other major tech companies that are customers of Scale's, including Microsoft, are backing away as well. Elon Musk's xAI is also looking to exit, one of the sources said. OpenAI decided to pull back from Scale several months ago, according to sources familiar with the matter, though it spends far less money than Google. OpenAI's CFO said on Friday that the company will continue to work with Scale AI, as one of its many data vendors. Companies that compete with Meta in developing cutting-edge AI models are concerned that doing business with Scale could expose their research priorities and road map to a rival, five sources said. By contracting with Scale AI, customers often share proprietary data as well as prototype products for which Scale's workers are providing data-labeling services. With Meta now taking a 49% stake, AI companies are concerned that one of their chief rivals could gain knowledge about their business strategy and technical blueprints. Google, Microsoft and OpenAI declined to comment. xAI did not respond to a request for comment. The bulk of Scale AI's revenue comes from charging generative AI model makers for providing access to a network of human trainers with specialized knowledge — from historians to scientists, some with doctorate degrees. The humans annotate complex datasets that are used to "post-train" AI models, and as AI models have become smarter, the demand for the sophisticated human-provided examples has surged, and one annotation could cost as much as $100. Scale also does data-labeling for enterprises like self-driving car companies and the U.S. government, which are likely to stay, according to the sources. But its biggest money-maker is in partnering with generative AI model makers, the sources said. Google had already sought to diversify its data service providers for more than a year, three of the sources said. But Meta's moves this week have led Google to seek to move off Scale AI on all its key contracts, the sources added. Because of the way data-labeling contracts are structured, that process could happen quickly, two sources said. This will provide an opening for Scale AI's rivals to jump in. "The Meta-Scale deal marks a turning point," said Jonathan Siddharth, CEO of Turing, a Scale AI competitor. "Leading AI labs are realizing neutrality is no longer optional, it's essential." Labelbox, another competitor, will "probably generate hundreds of millions of new revenue" by the end of the year from customers fleeing Scale, its CEO, Manu Sharma, told Reuters. Handshake, a competitor focusing on building a network of PhDs and experts, saw a surge of workload from top AI labs that compete with Meta. "Our demand has tripled overnight after the news," said Garrett Lord, CEO at Handshake. Many AI labs now want to hire in-house data-labelers, which allows their data to remain secure, said Brendan Foody, CEO of Mercor, a startup that in addition to competing directly with Scale AI also builds technology around being able to recruit and vet candidates in an automated way, enabling AI labs to scale up their data labeling operations quickly. Founded in 2016, Scale AI provides vast amounts of labeled data or curated training data, which is crucial for developing sophisticated tools such as OpenAI's ChatGPT. The Meta deal will be a boon for Scale AI's investors including Accel and Index Ventures, as well as its current and former employees. As part of the deal, Scale AI's CEO, Wang, will take a top position leading Meta's AI efforts. Meta is fighting the perception that it may have fallen behind in the AI race after its initial set of Llama 4 large language models released in April fell short of performance expectations.


San Francisco Chronicle
21 minutes ago
- San Francisco Chronicle
Wary response in Bay Area after Trump reportedly halts workplace raids at farms, hotels, eateries
As the Trump administration reportedly pauses immigration raids and arrests across most of the agricultural industry and hotels and restaurants, some Californians working in those sectors predicted the move will do little more than offer a false sense of security for undocumented workers. 'This is not a victory,' said Reyna Maldonado, owner of Las Guerreras, a Mexican restaurant in downtown Oakland. 'It's a political calculation, and we have every reason to remain skeptical.' The Trump administration on Thursday directed Immigration and Customs Enforcement officials to largely put a hold on enforcement operations across agricultural restaurant and hotel workplaces, according to an email obtained by the New York Times and reported by other outlets. The direction came as President Donald Trump acknowledged on social media that his aggressive immigration crackdown was hurting industries that he counted on for support. 'Our great Farmers and people in the Hotel and Leisure business have been stating that our very aggressive policy on immigration is taking very good, long time workers away from them, with those jobs being almost impossible to replace,' he wrote in a social media post. The industries singled out by Trump are major operators in California, so the impacts of an immigration crackdown and a potential reversal could be significant. The state produces more than a third of the nation's vegetables and three quarters of its fruits and nuts, according to the state agricultural department. California is also the top tourism destination in the country. The policy shift comes amid a push by the administration to detain and deport more undocumented immigrants that has sparked massive protests, particularly in California. Trump has deployed 4,000 National Guard troops and 700 Marines in response to ongoing demonstrations in Los Angeles. Workplace raids have been part of immigration agents' strategy, but they've also detained many immigrants showing up to required court appearances in San Francisco and elsewhere. The expansion of raids to include non-criminals working in various industries has been particularly controversial. Prior to reports of the policy shift, the California Farm Bureau on Friday put out a statement saying that the administration's immigration enforcement tactics were 'having a disruptive effect on California's rural communities and the farmers, ranchers, workers and families who live and work there.' 'If federal immigration enforcement activities continue in this direction, it will become increasingly difficult to produce food, process it and get it onto grocery store shelves,' Bryan Little, senior director of policy advocacy at the California Farm Bureau, said in the statement. Rumors of immigration raids spread across California's Central Valley fields this week, stoking fear among laborers and leading some to stay home from work. Andy Naja-Riese, CEO of Agricultural Institute of Marin, which operates more than a half dozen farmers markets, said Saturday he was hopeful that those who are working in the fields would not be subject to deportations and that they could 'continue to do the work that they do and stay here with their families and their neighbors.' In Oakland, Maldonado, a Mexican immigrant and recipient of the Deferred Action for Childhood Arrivals program, known as DACA, has held several team meetings in recent weeks to talk with her restaurant staff about evacuation plans in case of a raid and to ensure that everyone, including undocumented workers, knew their rights. 'It's been extremely difficult for all of us to come to work with so much tension and stress,' she said. 'As business owners, we're living with one foot in our dream, and the other one in a nightmare.' Despite the administration reportedly shifting its mass deportation campaign away from farms, hotels and restaurants, Maldonado said Saturday that she felt little relief. 'The lack of safety doesn't stop at restaurants. ICE is going to continue to show up in neighborhoods, other workplaces and at homes,' she said. 'This is a tactic to confuse the public, ease criticism from industries that heavily depend on immigrant labor and then quietly continue to terrorize undocumented people.' News of the new guidance broke the evening before No Kings protests launched in more than 2,000 cities across the nation in opposition to a large-scale military parade planned by the Trump administration to celebrate the president's 79th birthday. In San Francisco, protester Alexis Mauricio stood in Civic Center Plaza holding a sign that read "Tu Lucha es Mi Lucha," meaning "your fight is my fight." Inside each letter she had illustrated a flag from different countries, including Mexico, Brazil, Honduras and the United States. Mauricio, 30, said she was unimpressed by Trump's decision to pull back on the workplace raids. "I'll believe it when I see it," she said. "Those people never should have been targeted in the first place." Reporter J.D. Morris contributed to this report.