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The Hill
8 minutes ago
- The Hill
Trump may rue the day he sued Murdoch for libel over Epstein's birthday card
President Trump is suing Rupert Murdoch, Dow Jones — the Wall Street Journal's parent company — and two of the paper's reporters for $10 billion over the Journal's story about a lurid birthday card that Trump allegedly sent to the deceased sex offender Jeffrey Epstein in 2003. Trump claims that the card, which contains arguably compromising statements, was fabricated by unnamed Democrats. He posted about 'a POWERHOUSE Lawsuit against everyone involved in publishing the false, malicious, defamatory, FAKE NEWS 'article' in the useless 'rag' that is, The Wall Street Journal.' Murdoch and Trump have had an off-again-on-again relationship over the years. Murdoch's media outlets, principally the Journal and Fox News, after largely opposing Trump during the 2016 Republican primary, have been credited with helping propel him to the White House. According to the Journal's story, a letter bearing Trump's name 'contains several lines of typewritten text framed by the outline of a naked woman, which appears to be hand-drawn with a heavy marker.' 'Inside the outline of the naked woman was a typewritten note styled as an imaginary conversation between Trump and Epstein, written in the third person,' the paper reported. It reportedly contained a joking reference that 'enigmas never age' and ended with the words, 'A pal is a wonderful thing. Happy Birthday — and may every day be another wonderful secret.' Trump denied writing the note after the article was published, posting, 'These are not my words, not the way I talk. Also, I don't draw pictures.' The birthday note, if authentic, hints at Trump's contemporaneous awareness of Epstein's criminal behavior — as might Trump's comment to a reporter less than a year earlier that Epstein 'likes beautiful women as much as I do, and many of them are on the younger side.' Dow Jones said it would 'vigorously defend' itself against the lawsuit. 'We have full confidence in the rigor and accuracy of our reporting.' And so the issue is joined in court as well as the court of public opinion. Libel suits have historically been gravely dangerous not only for defendants but for plaintiffs as well. Such a suit often serves only to magnify the allegedly defamatory statements. Roy Cohn advised his clients never to sue for libel. He knew that Oscar Wilde and Alger Hiss sued for libel, and the truth, which is always a complete defense in a libel suit, led to criminal prosecution, conviction and jail. Gen. William Westmoreland sued CBS over defamatory statements about his conduct of the Vietnam War. Israeli Gen. Ariel Sharon sued Time Inc. over its reporting about his actions in Lebanon. Both came up essentially empty-handed. Trump will have a steep uphill climb to make out his complaint against Murdoch. The venerable New York Times v. Sullivan (1964) is still good law, despite Justice Clarence Thomas's stated desire to overrule it. A public official suing for libel must prove by clear and convincing evidence that the defamatory statements were published with actual knowledge of their falsity or a reckless disregard for the truth. In this case, we are talking about the Wall Street Journal, not the National Enquirer. It is very unlikely that the Journal knew the birthday card was a fabrication or that they proceeded recklessly, knowing that the source of the document was unreliable. More likely than not, the document came from the files of the Justice Department. Indeed, Trump, apart from lashing back at Murdoch, may have sued mainly to unearth via discovery the source of the leak. Trump claims that he relishes discovery in the case. 'I hope Rupert and his 'friends' are looking forward to the many hours of depositions and testimonies they will have to provide in this case,' the president stated. Trump's lawyers have asked the court to expedite Murdoch's deposition while he is still alive because Murdoch is '94 years old' and 'has suffered from multiple health issues.' But those 'many hours' may prove more harmful than helpful to Trump. Murdoch's lawyers will be able to bring out just where the Journal obtained the birthday card, as well as all the torrid details of the 15-year relationship between Epstein and Trump, including such undisclosed gems as how the friendship began; how close was it; whether it involved under-age women; whether, and, if so, when Trump learned that Epstein was trafficking teenagers; when Trump learned that Epstein was engaged in criminal acts; and when there was a severance of the relationship and why. Reports have suggested Trump and Epstein had a rift in 2004 over competing bids on a Palm Beach mansion, but there may be more to the story. Peggy Noonan reminds us that Trump's mantra is 'fight, fight, fight,' and he will do so even when it hurts him. 'There is no way on earth that [the lawsuit] will be a net positive for him. Which surely he knows,' she writes. 'He fights even when he will hurt himself, because the fight is all.' Trump is essentially libel-proof. What are his damages? His reputation for sexual misconduct is well known. A civil jury in New York found him liably for sexually abusing writer E. Jean Carroll in a department store dressing room. A New York jury convicted him of 34 counts of felony document falsification to cover up a tryst with pornographic film actress Stormy Daniels. It is too early to tell, but Trump may not have the sort of walk in the park he's had in his recent media lawsuits. He settled with ABC shortly after his reelection for $15 million, arising from George Stephanopoulos carelessly saying Trump was convicted of rape instead of sexual assault. Trump's recent settlement with CBS for $16 million, arising out of the claim that '60 Minutes' left unfavorable footage of former Vice President Kamala Harris on the cutting-room floor, seemed influenced more by parent company Paramount's need for FCC approval of its corporate merger than by the merits of the case. The Murdoch libel lawsuit, if pressed, may be full of booby traps and surprises for Trump. It could result in disclosure of many of the documents in the possession of the Justice Department, which the Journal reported subsequently were riddled with references to Trump himself. People in a position to know tell me that Murdoch will never settle. But he did appear to blink a little with a front-page 'exclusive' Journal article Friday under the headline: 'Jeffrey Epstein's Birthday Book Included Letters From Bill Clinton, Leon Black.' The article was singularly uninformative.
CNET
8 minutes ago
- CNET
I Saved Hundreds of Dollars by Using Klarna's AI Shopping Assistant. Here's How to Use It
We all have something we want to buy online. I prefer to buy experiences instead of earrings, but I do enjoy adding pieces to my wardrobe. Clothes that last, like timeless Levi's jeans, a black blazer, a warm coat for New York winters, colorful pants to welcome the spring -- I tend to build my outfits around staple pieces I fall in love with. The problem is, these items tend to cost more because they're higher quality. So when I heard that "buy now, pay later" leader Klarna had launched an artificial intelligence shopping assistant that helps compare products to find the best price for you, I was intrigued. It also has access to reviews and is able to answer your questions. What is Klarna's AI tool? Klarna was founded in 2005 and logs about 2 million transactions per day. Its AI shopping assistant is powered by OpenAI, the maker of ChatGPT and Dall-E. It's available free in the Klarna app. Klarna CEO Sebastian Siemiatkowski said in an interview with Bloomberg late last year that he believes in AI so much that he thinks "AI can already do all of the jobs that we as humans do." For now, let's see if Klarna AI can help me save on a new black bag for my city coworking days. Setting up with Klarna AI I downloaded the Klarna app and created an account. If you already use Klarna, you can start using the AI assistant immediately -- click on the chat icon in the top right-hand corner. It looks like any other AI chatbot with an "ask a question" section, as well as prepopulated prompts such as "compare Nike and Adidas shoes," "show me the best coffee machines" and "most popular wireless headphones." You can also click on Shop to browse and compare products, alongside the AI assistant. First, I wanted to try out the AI to see how it would do finding me a black bag that's stylish and functional. I needed to replace my Kate Spade handbag that hurts my shoulder when I carry my laptop in it. Klarna/Screenshot by CNET This became my first prompt: "I have a black Kate Spade handbag with a laptop slip. I love the style, but I need to switch to a backpack for better shoulder support. This is a look I like from the brand, Cole Haan. Can you provide similar options, compare the reviews, and find the best option under $300?" Off the bat, it found four options I liked that were $50 to $100 cheaper than the link I supplied. It understood that I was looking for a "chic" backpack. Then I selected the top two and the result came up as out of stock, which was frustrating. I checked one style that was available and Klarna AI generated a graph to help me understand if the price was high, low or standard. Klarna / Screenshot by CNET In my follow-up prompt, I told the Klarna AI that the styles I wanted were out of stock and to provide more options. It asked me to select similar brands I like. I didn't love the second options so next I requested "boho styles" and prepopulated brands to choose. I found one I liked at a good price. But again, it was out of stock. Then I tried a more general prompt: "women's premium leather backpack for work." It did better this time. I asked the AI assistant a question about the size, and it generated the key features, which included "plenty of room to store a 13-inch MacBook Pro." Next, I asked Klarna AI to check the reviews. It told me the product has a 4.7 rating out of five stars, with 379 reviews. I went to the Michael Kors website to verify this, and it was correct. Klarna / Screenshot by CNET I also found that the bag was 80% off. It was $498, marked down to $99. When I started the search for a new bag, I had the $328 Cole Haan backpack in mind but was more than happy to find this $99 Michael Kors alternative that I liked just as much -- and that would save me $229. My verdict on Klarna AI Like other AI tools, Klarna's AI assistant was a fun shopping partner. While Klarna needs to fix some bugs, such as not showing out-of-stock items, it was helpful to be able to chat about a product I was planning to buy. It made the shopping experience more interactive and more informed. While I don't think it should be a consumer's only search tool, it can play a part. You don't need to put the purchase on a Klarna installment plan. The AI assistant can be used purely as a research partner. It helped me save $229 by finding a backpack at a better price -- in less than 30 minutes. That's a pretty good deal if you ask me. Pros and cons of using Klarna AI for online shopping Cons It generated results that, when I clicked on them, came up as being out of stock on seller websites. Specific prompts don't always generate super accurate results, so use more general prompts. Pros
CNBC
9 minutes ago
- CNBC
Meta's AI spending spree is Wall Street's focus in second-quarter earnings
Over the years, Meta has built a reputation for using rivals' innovations to bolster its technology. But its decision to copy a Chinese artificial intelligence lab in 2025 in an effort to compete with OpenAI backfired, forcing the company to overhaul its AI strategy. In a rush to mimic the techniques developed by Chinese startup DeepSeek, Meta released a new version of its Llama family of AI models that disappointed third-party developers, according to people familiar with the matter. The reaction was so bad that CEO Mark Zuckerberg decided to spend billions of dollars to revamp the company's AI unit, and he's still considering more shake-ups to Meta's AI strategy, said the people, who asked not to be named due to confidentiality. When Meta reports second-quarter earnings on Wednesday, Zuckerberg will make the case to investors for his AI hiring spree and the company's related strategy shift. Meta's AI blitzkrieg kicked off in June, when it invested $14.3 billion into Scale AI, resulting in the data annotating startup's CEO, Alexandr Wang, joining Meta along with a handful of employees to oversee a cornerstone AI unit. This new Meta Superintelligence Labs will be led by Wang, now Meta's chief AI officer, and former GitHub CEO Nat Friedman, who also joined the company in June along with business partner Daniel Gross. Gross was previously the CEO of AI startup Safe Superintelligence, which Meta tried to buy before being rebuffed by co-founder Ilya Sutskever. While Meta couldn't land the AI pioneer and former OpenAI co-founder, it did hire multiple top researchers from competitors like the ChatGPT maker, Apple and Google to help it regain its footing in the fiercely competitive artificial intelligence market. One such hire was ChatGPT co-creator Shengjia Zhao, who Zuckerberg last week named as his new AI lab's chief scientist. Although Meta's AI talent grab may not result in the company raising its projection for 2025 total expenses, estimated to come in between $113 billion to $118 billion, Cantor analysts said in a note published earlier this month that the investment potentially "moves the target above the low end." Translation: all that hiring comes with a cost, albeit slight. Meanwhile, revenue growth in the second quarter likely slowed to 15%, down from 22% a year earlier, according to LSEG. It would be the slowest rate of expansion for the company since early 2023, and analysts are expecting lower levels of growth in the coming quarters. Zuckerberg believes that new AI talent as part of the Superintelligence unit is worth it if Meta can regain its momentum and potentially create more powerful AI technology that steamrolls the competition, CNBC reported in June. For Meta, Llama 4 represented the company's answer to competing models from rivals like OpenAI, and executives have viewed it as helping the company dominate a potential computing platform of the future. Similar to other Meta-incubated technologies like the PyTorch AI developer tools, the company released Llama to the open-source community, which can then access and use the software for free, subject to certain licensing terms. While the predecessor, Llama 3, was a hit with developers, they haven't taken to Llama 4 because it's seen by some as more difficult to customize and integrate into their apps. That's resulted in many coders preferring Llama 3 over its successor, people familiar with the matter said. Additionally, Zuckerberg lost confidence in his generative AI team and its leadership in part due to a controversy over whether Meta may have gamed certain industry AI benchmark tests, the people said. Llama 4's struggles can be traced back to January, when the sudden rise and ensuing popularity of the open-source R1 AI model by DeepSeek caught Meta off guard, leading to a reevaluation of Llama's underlying architecture, the people said. DeepSeek's R1 is a so-called mixture-of-experts AI model, or MoE. R1 is similar to OpenAI's o1 family of models that can be trained to excel at multistep tasks like solving math equations or writing code. By contrast, Llama's models — before their latest release - were dense AI models, which are generally simpler for most AI developers to fine-tune and incorporate into their own apps, the people said. AI labs like OpenAI and Anthropic, researchers say, have been pushing MoE models to power AI agents that can perform a variety of step-by-step tasks. Those companies keep their designs closely guarded from competitors. OpenAI has been developing an AI model for the open-source community, but CEO Sam Altman said earlier this month that its debut is delayed indefinitely pending safety tests and other reviews. Although Meta has previously published research on MoE models, DeepSeek's release to the open-source community wowed researchers because R1 appeared to be less expensive to train and run compared with other AI models, experts said. Suddenly, Meta executives thought they had a clearer picture into how to create their own efficient and possibly cheaper MoE models, potentially leapfrogging rivals like OpenAI, people familiar with the matter said. Still, some staff members in Meta's GenAI unit pushed for Llama 4 to remain a dense AI model, which though generally less efficient, is still powerful, and Meta originally planned on that architecture acting as the backbone supporting improved voice recognition capabilities, the people said. Ultimately, Meta went with the MoE approach, due in part to DeepSeek's innovations and the promise of pulling ahead of OpenAI, the people said. Meta released two small versions in April and said a "Behemoth" version would come at a later date. But the new MoE architecture disappointed some developers, who were simply hoping Llama 4 would be a souped-up version of Llama 3, people familiar with the matter said. Llama 4 also failed to deliver a significant leap over competing open-source models from China, the people said. Executives at Meta as well as the Superintelligence Labs' high-profile hires are now questioning the company's current open-source AI strategy, and have considered skipping the release of Behemoth in favor of developing a more powerful proprietary AI model, the people said. A Meta spokesperson said in a statement that the company's "position on open source AI is unchanged." "We plan to continue releasing leading open source models," the spokesperson said. "We haven't released everything we've developed historically and we expect to continue training a mix of open and closed models going forward." The New York Times first reported that Meta was considering upending its open-source AI strategy. Despite Meta's AI struggles, the company's core online ad business remains strong, and investors are hopeful that the recent AI investments and hiring will eventually pay off. Zuckerberg said in July that the company would invest "hundreds of billions of dollars" into building out the computing infrastructure needed to power cutting-edge AI projects. "Meta Superintelligence Labs will have industry-leading levels of compute and by far the greatest compute per researcher," Zuckerberg said in a Facebook post. Analysts at Bank of America said in a note this month that Zuckerberg's comments indicate "a sign of confidence in Meta's revenue trajectory." The analysts said that his statement also "implies higher future Capex and Opex," which potentially equates to even more AI spending. "We also see the post as reaching out to AI talent, signaling Meta as a place for AI innovation," the analysts wrote. "We expect AI investment to be a top focus area on the upcoming earnings call, and Meta likely needs to make a case for strong AI returns to drive multiple expansion." Meta and its rivals' pursuit of AI researchers echoes the self-driving car frenzy of 2017, when companies like Google and Uber competed fiercely for talent, doling out "similarly crazy kind of pay packages across the board," said Megh Gautam, chief product officer at deal-tracking firm Crunchbase. "The dynamics still feel very much like a winner-take-all-market, so you're trying your best to give yourself the best shot possible to go make that happen," Gautam said. Investors appear more receptive to Meta's AI spending and strategy shifts, a contrast with a few years ago when the company was heavily pushing the metaverse, said Uday Cheruvu, an analyst and portfolio manager at Harding Loevner, which owns Meta shares. OpenAI, Google and Anthropic are also trying to hire and maintain talent all while continuing to spend billions of dollars on developing their respective AI models, Cheruvu said. "Now with AI, it's not just Meta – everyone else is doing it, so now the euphoria is much higher," Cheruvu said.
