AI startups are poised to disrupt the $300 billion business process outsourcing (BPO) industry, as advances in language models and voice technology enable automation of tasks traditionally handled by human workers.

The BPO market, which reached $300 billion in 2024 and is projected to hit $525 billion by 2030, faces mounting pressure from AI companies offering faster, more scalable alternatives to manual processing of customer support, IT services and financial claims, venture capital firm a16z wrote in a thesis post. Early AI implementations have shown promising results, with customer service startup Decagon reporting 80% resolution rates and improved satisfaction scores. In healthcare, AI company Juniper said its clients saw 80% fewer insurance claim denials and 50% faster processing times.

Major BPO providers are responding to the threat, with Wipro reporting a 140% increase in AI adoption across projects and Infosys deploying over 100 AI agents. However, industry analysts say BPOs face structural challenges in transitioning from their labor-based business model to AI-first operations. The shift threatens traditional BPO companies like Cognizant, Infosys and Wipro, which reported revenues between $10-20 billion in their latest fiscal years.

Alibaba will partner with Apple to support AI features on iPhones in China, sending Alibaba's shares surging over 9% to a three-year high. Reuters reports: "They talked to a number of companies in China. In the end they chose to do business with us. They want to use our AI to power their phones. We feel extremely honored to do business with a great company like Apple," Tsai said at the World Government Summit in Dubai. Apple continues to work with Baidu on AI features for iPhones in China, The Information reported on Thursday, citing two people with direct knowledge of the matter.

While Apple's phones outside China utilize a combination of its proprietary Apple Intelligence and OpenAI's ChatGPT, Tsai did not specify whether the Alibaba partnership would follow a similar model. In China, consumer-facing AI products require regulatory approval, and The Information reported earlier that both Alibaba and Apple have already submitted materials to authorities. "Instead of viewing the Alibaba-Apple partnership through the lens of China's AI strength, the partnership is mainly a recognition of Alibaba's AI capability," said Lian Jye Su, a chief analyst at tech research firm Omdia.

Reddit's recent earnings report revealed that AI licensing deals with Google and OpenAI account for about 10% of its $1.3 billion revenue, totaling approximately $130 million. With Google paying $60 million, OpenAI is estimated to be paying Reddit around $70 million annually for content licensing. Adweek reports: "It's a small part of our revenue -- I'll call it 10%. For a business of our size, that's material, because it's valuable revenue," [said the company's COO Jen Wong]. The social platform -- which on Wednesday reported a 71% year-over-year lift in fourth-quarter revenue -- has been "very thoughtful" about the AI developers it chooses to work with, Wong said. To date, the company has inked two content licensing deals: one with Google for a reported $60 million, and one with ChatGPT parent OpenAI.

Reddit has elected to work only with partners who can agree to "specific terms ... that are really important to us." These terms include user privacy protections and conditions regarding "how [Reddit is] represented," Wong said. While licensing agreements with AI firms offer a valuable business opportunity for Reddit, advertising remains the company's core revenue driver. Much of Reddit's $427.7 million Q4 revenues were generated by the ongoing expansion of its advertising business. And its ad revenue as a whole grew 60% YoY, underscoring the platform's growing appeal to brands. [...]

Helping to accelerate ad revenue growth is Reddit's rising traffic. While Reddit's Q4 user growth came in under Wall Street projections, causing shares to dip, its weekly active uniques grew 42% YoY to over 379 million visitors. Average revenue per unique visitor was $4.21 during the quarter, up 23% from the prior year. While Google is "nicely reinforcing" Reddit's growth in traffic, Wong said, she added that the site's logged-in users, which have grown 27% year-over-year, are "the bedrock of our business."

The U.S. released Russian cybercriminal Alexander Vinnik, who pleaded guilty to conspiracy to commit money laundering through his cryptocurrency exchange BTC-e, as part of a prisoner swap that freed American schoolteacher Marc Fogel from Russian custody. The Guardian reports: Vinnik, who arrived in Moscow on a flight from Turkey on Tuesday after having been released from custody in California, is accused of owning and operating one of the largest cryptocurrency exchanges in the world, BTC-e, which prosecutors allege facilitated the transfer of billions of dollars in transactions for criminals worldwide. In May 2024, Vinnik pleaded guilty to conspiracy to launder billions of dollars through BTC-e. He was first arrested in Greece in 2017 at the request of the United States after he was charged by a US jury in a 21-count indictment.

The charges against him included money laundering, conspiracy to commit money laundering, operating an unlicensed money service business and engaging in unlawful monetary transactions, among others. Vinnik was first extradited to France from Greece, where he received a five-year prison sentence for money laundering. He was then sent back to Greece and extradited to the United States in 2022 to face US charges. The justice department described BTC-e, which was active from around 2011 to 2017, as a "significant cybercrime and online money laundering entity that allowed its users to trade in bitcoin with high levels of anonymity and developed a customer base heavily reliant on criminal activity." Prosecutors say that BTC-e processed over $9 bn worth of transactions and served over 1 million users globally, including numerous customers in the US.

US prosecutors said that the exchange was one of the "primary ways by which cyber criminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities" and accused Vinnik of operating the company with the intent to "promote" unlawful activities. Prosecutors said that he was responsible for more than $120m in losses. Vinnik, who is a nonviolent offender, is forfeiting tens of millions of dollars in assets in the exchange, according to the New York Times.

An anonymous reader shares a report: JPMorgan Chase CEO Jamie Dimon scorned calls from some employees to soften the bank's five-day return-to-office policy in an animated town hall meeting on Wednesday, according to a recording reviewed by Reuters. Employees at the largest U.S. bank have complained on internal message boards and chats about losing hybrid working arrangements, and one group launched an online petition urging Dimon to reconsider.

When asked about the in-person work policy during the staff meeting, he said: "Don't waste time on it. I don't care how many people sign that fucking petition," he said. Instead, Dimon demanded more efficiency and stressed that employees have a choice whether to work at JPMorgan. The CEO told them not to be mad at him, and said that it was a free country.

The German antitrust authority has charged Apple with abusing its market power through its app tracking tool and giving itself preferential treatment in a move that could result in daily fines for the iPhone maker if it fails to change its business practices. From a report: The move follows a three-year investigation by the Federal Cartel Office into Apple's App Tracking Transparency feature, which allows users to block advertisers from tracking them across different applications.

The U.S. tech giant has said the feature allows users to control their privacy but has drawn criticism from Meta Platforms, app developers and startups whose business models rely on advertising tracking. "The ATTF (app tracking tool) makes it far more difficult for competing app publishers to access the user data relevant for advertising," Andreas Mundt, cartel office president, said in a statement.

Property group startup Opendoor has cut 65 jobs, mostly in India, and is shifting technical hiring to Bay Area and Krakow (Poland).

Opendoor said in a statement: "As part of our ongoing efforts to enhance efficiency, optimize talent, and streamline operations, we have made the decision to consolidate our Engineering, Product, and Design (EPD) team structure. Moving forward, we will focus our technical hiring efforts in two main hubs: the Bay Area, California and Krakow, Poland."

Google will soon use machine learning to estimate the age of its users. From a report: In an update on Wednesday, Google said it's testing a machine learning model in the US to help determine whether someone is under 18, allowing it to "provide more age-appropriate experiences" across its platforms. The age estimation model will use existing data about users, including the sites they visit, what kinds of videos they watch on YouTube, and how long they've had an account to determine their age.

Most corporate tech leaders are hesitant to deploy AI agents despite vendors' push for rapid adoption, according to a Wall Street Journal CIO Network Summit poll on Tuesday. While 61% of attendees at the Menlo Park summit said they are experimenting with AI agents, which perform automated tasks, 21% reported no usage at all.

Reliability concerns and cybersecurity risks remain key barriers, with 29% citing data privacy as their primary concern. OpenAI, Microsoft and Sierra are urging businesses not to wait for the technology to be perfected. "Accept that it is imperfect," said Bret Taylor, Sierra CEO and OpenAI chairman. "Rather than say, 'Will AI do something wrong', say, 'When it does something wrong, what are the operational mitigations that we've put in place?'" Three-quarters of the polled executives said AI currently delivers minimal value for their investments. Some companies are "having hammers looking for nails," said Jim Siders, Palantir's chief information officer, describing firms that purchase AI solutions before identifying clear use cases.

Alan W. Filion, an 18-year-old from Lancaster, Calif., was sentenced to four years in prison for making nearly 400 false bomb threats and threats of violence (source may be paywalled; alternative source) to religious institutions, schools, universities and homes across the country. The New York Times reports: The threatening calls Mr. Filion made would often cause large deployments of police officers to a targeted location, the Justice Department said in a news release. In some cases, officers would enter people's homes with their weapons drawn and detain those inside. In January 2023, Mr. Filion wrote on social media that his swats had often led the police to "drag the victim and their families out of the house cuff them and search the house for dead bodies."

Investigators linked Mr. Filion to over 375 swatting calls made in several states, including one that he made to the police in Sanford, Fla., saying that he would commit a mass shooting at the Masjid Al Hayy Mosque. During the call, he played audio of gunfire in the background. Mr. Filion was arrested in California in January 2024, and was then extradited to Florida to face state charges for making that threat. Mr. Filion began swatting for recreation in August 2022 before making it into a business, the Justice Department said. The teenager became a "serial swatter" and would make social media posts about his "swatting-for-a-fee" services, according to prosecutors.

In addition to pleading guilty to the false threat against the mosque in Florida, Mr. Filion pleaded guilty in three other swatting cases: a mass shooting threat to a public school in Washington State in October 2022; a bomb threat call to a historically Black college or university in Florida in May 2023; and a July 2023 call in which he claimed to be a federal law enforcement officer in Texas and told dispatchers that he had killed his mother and would kill any responding officers.

The US, UK, and Australia (AUKUS) have sanctioned Russian bulletproof hosting provider Zservers, accusing it of supporting LockBit ransomware operations by providing secure infrastructure for cybercriminals. The sanctions target Zservers, its UK front company XHOST Internet Solutions, and six individuals linked to its operations. The Register reports: Headquartered in Barnaul, Russia, Zservers provided BPH services to a number of LockBit affiliates, the three nations said today. On numerous occasions, affiliates purchased servers from the company to support ransomware attacks. The trio said the link between Zservers and LockBit was established as early as 2022, when Canadian law enforcement searched a known LockBit affiliate and found evidence they had purchased infrastructure tooling almost certainly used to host chatrooms with ransomware victims.

"Ransomware actors and other cybercriminals rely on third-party network service providers like Zservers to enable their attacks on US and international critical infrastructure," said Bradley T Smith, acting under secretary of the Treasury for terrorism and financial intelligence. "Today's trilateral action with Australia and the United Kingdom underscores our collective resolve to disrupt all aspects of this criminal ecosystem, wherever located, to protect our national security." The UK's Foreign, Commonwealth & Development Office (FCDO) said additionally that the UK front company for Zservers, XHOST Internet Solutions, was also included in its sanctions list. According to Companies House, the UK arm was incorporated on January 31, 2022, although the original service was established in 2011 and operated in both Russia and the Netherlands. Anyone found to have business dealings with either entity can face criminal and civil charges under the Sanctions and Anti-Money Laundering Act 2018.

The UK led the way with sanctions, placing six individuals and the two entities on its list, while the US only placed two of the individuals -- both alleged Zservers admins -- on its equivalent. Alexander Igorevich Mishin and Aleksandr Sergeyevich Bolshakov, both 30 years old, were named by the US as the operation's heads. Mishin was said to have marketed Zservers to LockBit and other ransomware groups, managing the associated cryptocurrency transactions. Both he and Bolshakov responded to a complaint from a Lebanese company in 2023 and shut down an IP address used in a LockBit attack. The US said, however, it was possible that the pair set up a replacement IP address that LockBit could carry on using, while telling the Lebanese company that they complied with its request. The UK further sanctioned Ilya Vladimirovich Sidorov, Dmitry Konstantinovich Bolshakov (no mention of whether he is any relation to Aleksandr), Igor Vladimirovich Odintsov, and Vladimir Vladimirovich Ananev. Other than that they were Zservers employees and thus were directly or indirectly involved in attempting to inflict economic loss to the country, not much was said about either of their roles.

Seven of the 10 world's largest economies missed a deadline on Monday to submit updated emissions-cutting plans to the United Nations -- and only one, the UK, outlined a strategy for the next decade that keeps pace with expectations staked out under the Paris Agreement. From a report: All countries taking part in the UN process had been due to send their national climate plans for the next decade by Feb. 10, but relatively few got theirs in on time. Dozens more nations will likely come forward with updated plans within the next nine months before the UN's annual climate summit, known as COP30, kicks off in Brazil.

The lack of urgency among the more than 170 countries that failed to file what climate diplomats refer to as "nationally determined contributions" (NDCs) adds to concerns about the world's continuing commitment to keeping warming to well below 2C, and ideally 1.5C, relative to pre-industrial levels. Virtually every country adopted those targets a decade ago in the landmark agreement signed in Paris, but a series of lackluster UN summits last year has added to a sense of backsliding. US President Donald Trump has already started the process of pulling the world's second-largest emitter out of the global agreement once again. Political leaders in Argentina, Russia and New Zealand have indicated they would like to follow suit.

Crowdfunding platform Kickstarter will start notifying supporters when a fundraising campaign faces "significant fulfillment failures" and breaks the platform's rules. From a report: The notification will also inform supporters how it's addressing the issue, including by "restricting the creator from launching future projects."

The update comes as part of a series of changes Kickstarter plans to make this year that are aimed at "enhancing the backer experience and building trust in our community." Kickstarter has long faced challenges with scams and projects shutting down after raising thousands (or sometimes millions) of dollars, but this change should at least provide more transparency to backers.

Meta began notifying staff of job cuts on Monday, kick-starting a process that will terminate thousands of people as the company cracks down on "low-performers" and scours for new talent to dominate the AI race. From a report: Meta workers who were let go were notified via email, and the company is offering US-based employees severance packages that include 16 weeks of salary, in addition two weeks for each year of service, according to people familiar with the matter, who asked not to be named because the details weren't public. Employees whose review merited a bonus will still get one, and staff will still receive stock awards as part of the upcoming vesting cycle later this month, the people said.

Chief Executive Officer Mark Zuckerberg told employees that Meta would cut 5% of its workforce -- as many 3,600 people -- with a focus on staff who "aren't meeting expectations," Bloomberg News first reported in mid-January. Affected US-based employees would be notified on Feb. 10, while international employees could learn later, Zuckerberg said last month. In a separate message to managers, the Facebook co-founder said the cuts would create headcount for the company to hire the "strongest talent."

If there was any doubt before, this seals it: YouTube is in the TV business. According to Neal Mohan, YouTube's CEO, TV screens have officially overtaken mobile as the "primary device for YouTube viewing in the U.S." In other words, more people are watching YouTube on TV sets than any other device, at least here in the U.S. From a report: It is, as Mohan writes in his annual letter from the CEO, an indication that "YouTube is the new television."

"But the 'new' television doesn't look like the 'old' television," Mohan writes. "It's interactive and includes things like Shorts (yes, people watch them on TVs), podcasts, and live streams, right alongside the sports, sitcoms and talk shows people already love."

An anonymous reader shares a report: Microsoft has offered to widen the price differential between its Office product sold with its chat and video app Teams and its software sold without the app in a bid to avert a possible EU antitrust fine, according to three sources. The move by the U.S. tech giant comes five years after Salesforce-owned Slack complained to the European Commission about Microsoft's tying of Teams with Office. In 2023, German rival alfaview filed a similar grievance to the EU watchdog. Teams, which was added to Office 365 in 2017 for free and eventually replaced Skype for Business, became popular during the pandemic due in part to its video conferencing.

An anonymous reader shares a report: For a man who's spent his career battling to make France more pro-business, Europe's prospects on AI are worrying: an oversight that could cost the bloc dearly. "We are not in the race today," French President Emmanuel Macron told CNN's Richard Quest in an exclusive interview at the Elysee Palace on Thursday. "We are lagging behind."

"We need an AI agenda," he said, "because we have to bridge the gap with the United States and China on AI." The French leader added that he fears Europe becoming merely an AI consumer, losing control over the future direction and development of the technology. That's part of the impetus behind this week's AI summit in Paris -- the latest effort by Macron to put France at the heart of the debate and decision-making on international questions of the day. Earlier today, Macron announced investment pledges to bolster France's AI sector totalling $112 billion over the coming years.

They publish 77 newspapers in 26 U.S. states, according to Wikipedia. But this week a "cybersecurity event" at the newspapers' parent company "disrupted systems and networks," according to an article at one of their news sites which quotes an email sent to employees by the publishing company's CEO. "We have notified law enforcement of the situation."

And the company "has not released print or e-editions in most markets this week," according to the Augusta Free Press, "originally telling subscribers the outage was due to a server issue," The CEO said the company is also working to identify "additional steps we can take to help prevent something like this from happening again." The computer server appears to have compromised [last] Monday morning. No timeline has been announced for when news operations will return to normal publication schedules. According to a report in The News Virginian and published on the websites of the affected papers nationwide, the company is now producing, printing and delivering back issues, indicating at least some progress on printing and layout front...

Unfortunately, the cybersecurity attack on its server wasn't the only bad news for Lee Enterprises this week... In addition to the estimated $16.7 million the enterprise reported it lost in the last quarter, it has also gutted the staff of its newspapers as it appears to shift its focus toward more successful digital operations.

Today T-Mobile announced what they're calling "the next big thing in wireless" — T-Mobile Starlink. But the real surprise is "The beta is now open for absolutely everyone — yes, even Verizon and AT&T customers — to register for free access until July."

And, as they explained to Americans watching the Super Bowl, "If you can see the sky you're connected." Now in public beta, this breakthrough service, developed in partnership with Starlink, uses straight-out-of-a-sci-fi-movie satellite and mobile communications technology to help keep people connected — even you, Verizon and AT&T customers — in the more than 500,000 square miles of the country unreached by any carrier's earth-bound cell towers. That's nearly the size of two Texases...! The beauty of the service is its simplicity: users don't need to do anything out of the ordinary. When a user's cell phone gets out of range of a cell tower, the phone automatically connects to the T-Mobile Starlink network. No need to manually connect. Messages are sent and received just as they are today on a traditional network, even group texts and reactions. And it works on most smartphones from the last four years. It's not limited to a few smartphones or operating systems...

The beta is free until July at which point T-Mobile Starlink will be included at no extra cost on Go5G Next (including variations like Go5G Next 55+), T-Mobile's best plan. Business customers will also get T-Mobile Starlink at no extra cost on Go5G Business Next, first responder agencies on T-Priority plans and other select premium rate plans. T-Mobile customers on any other plan can add the service for $15/month per line. Through February, T-Mobile customers who have registered for the beta can secure a $10/month per line Early Adopter Discount, 33% off the full price.

AT&T and Verizon customers hate dead zones, too

When your service is amazing and different, you want as many people to try it as possible. T-Mobile is giving AT&T and Verizon customers the opportunity to try out T-Mobile Starlink satellite service on their existing phones... During the beta period, Verizon and AT&T customers can experience T-Mobile Starlink text messaging for free, and once the service launches in July, it will be available for $20/month per line... More details and consumer registration can be found here.

A Vision for Universal Coverage

As T-Mobile and Starlink continue to work towards eliminating mobile deadzones, the companies welcome wireless providers from around the world to join their growing alliance, which aims to provide reciprocal roaming for all participating carriers. So far, KDDI (Japan), Telstra (Australia), Optus (Australia), One NZ (New Zealand), Salt (Switzerland), Entel (Chile & Peru), Rogers (Canada) and Kyivstar (Ukraine) are among the providers that have signed on to join the cause and launch satellite-to-mobile technology. Learn more about the alliance and how providers can join at direct.starlink.com.

Fortune remembers that in 2011 Steve Jobs had told author Walter Isaacson that Microsoft co-founder Bill Gates would "be a broader guy if he had dropped acid once or gone off to an ashram when he was younger."

But The Indendepent notes that in his new memoir Gates does write about two acid trip experiences. (Gates mis-timed his first experiment with LSD, ending up still tripping during a previously-scheduled appointment for dental surgery...) "Later in the book, Gates recounts another experience with LSD with future Microsoft co-founder Paul Allen and some friends... Gates says in the book that it was the fear of damaging his memory that finally persuaded him never to take the drug again." He added: "I smoked pot in high school, but not because it did anything interesting. I thought maybe I would look cool and some girl would think that was interesting. It didn't succeed, so I gave it up."

Gates went on to say that former Apple CEO Steve Jobs, who didn't know about his past drug use, teased him on the subject. "Steve Jobs once said that he wished I'd take acid because then maybe I would have had more taste in my design of my products," recalled Gates. "My response to that was to say, 'Look, I got the wrong batch.' I got the coding batch, and this guy got the marketing-design batch, so good for him! Because his talents and mine, other than being kind of an energetic leader, and pushing the limits, they didn't overlap much. He wouldn't know what a line of code meant, and his ability to think about design and marketing and things like that... I envy those skills. I'm not in his league."

Gates added that he was a fan of Michael Pollan's book about psychedelic drugs, How To Change Your Mind, and is intrigued by the idea that they may have therapeutic uses. "The idea that some of these drugs that affect your mind might help with depression or OCD, I think that's fascinating," said Gates. "Of course, we have to be careful, and that's very different than recreational usage."
Touring the country, 69-year-old Gates shared more glimpses of his life story:

• The Harvard Gazette notes that the university didn't offer computer science degrees when Gates attended in 1973. But since Gates already had years of code-writing experience, he "initially rebuffed any suggestion of taking computer-related coursework... 'It's too easy,' he remembered telling friends."

• "The naiveté I had that free computing would just be this unadulterated good thing wasn't totally correct even before AI," Gates told an audience at the Harvard Book Store. "And now with AI, I can see that we could shape this in the wrong way."

• Gates "expressed regret about how he treated another boyhood friend, Paul Allen, the other cofounder of Microsoft, who died in 2018," reports the Boston Globe. "Gates at first took 60 percent ownership of the new software company and then pressured his friend for another 4 percent. 'I feel bad about it in retrospect,' he said. 'That was always a little complicated, and I wish I hadn't pushed....'"

• Business Insider adds that according to his memoir, Gates "eventually gave his additional 4% stake to [Steve] Ballmer to convince him to quit business school for Microsoft. 'He joined in 1980 and became the 24-hour-a-day partner I needed,' Gates wrote."

• Benzinga writes that Gates has now "donated $100 billion to charitable causes... Had Gates retained the $100 billion he has donated, his total wealth would be around $264 billion, placing him second on the global wealth rankings behind Elon Musk and ahead of Jeff Bezos and Mark Zuckerberg."

• Gates told the Associated Press "I am stunned that Intel basically lost its way," saying Intel is now "kind of behind" on both chip design and fabrication. "They missed the AI chip revolution, and with their fabrication capabilities, they don't even use standards that people like Nvidia and Qualcomm find easy... I hope Intel recovers, but it looks pretty tough for them at this stage."

• Gates also told the Associated Press that fighting a three-year antitrust case had "distracted" Microsoft. "The area that Google did well in that would not have happened had I not been distracted is Android, where it was a natural thing for me. I was trying, although what I didn't do well enough is provide the operating system for the phone. That was ours for the taking."

• The Dallas News reports that in an on-stage interview in Texas, Mark Cuban closed by asking Gates one question. "Is the American Dream alive?" Gates answered: "It was for me."