Silicon Valley's venture-capital firms are having an easy time finding promising startups to back. The hard part is cashing out. From a report: Last year, U.S. venture firms returned $26 billion worth of shares back to their investors, the lowest amount since 2011, according to the data provider PitchBook. Startup investors say 2024 has continued the trend, with high levels of investment and few acquisition deals or initial public offerings. "We've raised a lot of money, and we've given very little back," Thomas Laffont, co-founder of investment firm Coatue Management, said at a recent conference. "We are bleeding cash as an industry."

Last year, U.S. venture firms invested $60 billion more than they collected, the highest such deficit in PitchBook's 26 years of data. As a result, the investors that back VC firms, such as university endowments and pension funds, aren't seeing the type of profits the industry has long delivered. The decline is particularly notable because the past three years have been the highest three on record for total VC firm investments since 1998 -- as far as back as the PitchBook data goes. Much of that money has recently gone to artificial-intelligence startups -- a white-hot space in which valuations are rising fast and companies quickly burn through cash to develop new technology.

A new six-episode Dune series premiers tonight on HBO and Max — a prequel to the Denis Villeneuve-directed Dune movies set 10,000 years before the birth f Paul Atreides. The Hollywood Reporter writes that it "draws on source material from the 2012 novel Sisterhood of Dune by Brian Herbert and Kevin J. Anderson, and Frank Herbert's 1965 novel Dune, the origin of the Dune universe." Cord-cutters can stream Dune: Prophecy online without cable on Max, with subscriptions starting at $9.99 per month through both Prime Video and the Max website directly. Amazon offers a seven-day free trial to the Max channel. Those who want to watch Dune: Prophecy online without a traditional cable service can also get Max as an add-on to existing streaming services, including Hulu and DirecTV Stream.
The San Francisco Chronicle describes the series as "">all palace intrigues, agonizing deaths and magical mind games." Taking a further cue from the network's top-rated Game of Thrones, this show indulges more sex and nudity than the Dune movies allow. It could be argued that elements like this introduce a liveliness often missing from the portentous big-screen behemoths, marking an improvement. Another fun touch here: Many characters are constantly baked.

Set a millennium before Frank Herbert's novels and the films' events, and a century after humans overthrew their "thinking machine" overlords, the psychoactive "Spice" from the desert planet Arrakis is already the most valued substance in the universe. It's not only vital for spaceship navigation and to expand the mental powers of sorceressy sisterhoods like the Bene Gesserit, it's the club drug of choice for younger members of the galaxy-ruling Great Houses. As ever with "Dune" business, control of the Spice trade fuels much of the conflict and character motivations.

Of which there are just enough to keep things interesting without becoming confusing... While the show can't match the outsize visual scope of Denis Villeneuve's films, it does pleasingly approximate those vast alien landscapes, Brutalist edifices and high-ceilinged chambers on a TV budget. For those who find Villeneuve's formal gigantism oppressive, the series' more human scale might be another welcome change of pace... There may not be an original thought in this "Dune" product's Spice-soaked head, but it is one professionally put-together piece of this sort of entertainment.
"Tasked with making more material with less money and time, Prophecy cannot hope to equal Villeneuve's aesthetic accomplishments," writes Variety. "But at its best, the show does justice to the intricate politics and ethical debates that form a cornerstone of Frank Herbert's fictional universe... The primary Dune plot finds many echoes throughout Prophecy..."

On the other hand, Vulture argues the six-episode series is "stuck in prequel quicksand," even calling it "an act of cowardice and abdication of creativity" (while also noting moments where it "feels like it's stretching itself to be something other than what we expect..."

This week Alphabet CEO Sundar Picahi assured investors that their long-term AI focus and investment (and a "commitment to innovation") "are paying off," reports the Associated Press. Alphabet's stock has already soared 20% this year, and it's "still thriving" as the company "navigates through a pivotal shift to AI and battles regulators..." Alphabet earned $26.3 billion, or $2.12 per share during the most recent quarter, a 34% increase from a year ago. Revenue rose 15% from the same time last year to $88.27 billion... The profits would have been even higher if Google wasn't pouring so much money into building up its AI arsenal in a technological arms race that includes other industry heavyweights Microsoft, Amazon, Apple, Facebook parent Meta Platforms and rising star OpenAI. The AI investments are the primary reason Google's capital expenditures in the past quarter soared 62% from the same time last year to $13.1 billion. The AI spending will likely stay at roughly the same level during the current October-December period, and the rise even higher next year, according to Anat Ashkenazi, Alphabet's chief financial officer.

But Ashkenazi also emphasized the Mountain View, California, company will act on cost-cutting opportunities in other areas to help boost profits. Alphabet already has trimmed its payroll from more than 190,000 worldwide employees early last year to about 181,000 workers now. In an example of how AI can perform tasks that once required human brainpower, Pichai said the technology is now writing more than 25% of the company's new computer coding.
After the results, investors sent Alphabet's stock price up 5% in extended trading, the article points out. "Both Alphabet's profit and revenue increased at a brisker pace than industry analysts anticipated, thanks primarily to a moneymaking machine powered by Google's ubiquitous search engine... [Google's digital search-engine ads earned $49.39 billion, 12% more than the same quarter of 2023.] And Google's cloud division is growing at an even more robust rate, thanks to demand for AI services. The cloud division generated $11.35 billion in revenue during the past quarter, a 35% increase from last year."

And meanwhile over at Microsoft, quarterly sales surged 16% to $65.6 billion, reports the Associated Press. But again, "the company sought to assure investors its huge spending on artificial intelligence is paying off." The company has spent billions of dollars to expand its global network of data centers and other physical infrastructure required to develop AI technology... As a result, AI-related products are now on track to contribute about $10 billion to the company's annual revenue, the "fastest business in our history to reach this milestone," CEO Satya Nadella said on a call with analysts Wednesday. [Though Microsoft "hasn't yet formally reported revenue specifically from AI products," the article notes later, with Microsoft instead saying it's infused AI and Copilot into all its business segments.]
Just in the last quarter, Microsoft spent $20 billion "mostly for its cloud computing and AI needs," the article points out.

But there's still making plenty of money... The software maker also reported an 11% increase in quarterly profit to $24.7 billion, or $3.30 per share, which beat Wall Street expectations for the July-September period... Leading in sales for the quarter was Microsoft's productivity business segment, which includes its Office suite of email and other workplace products, growing 12% to $28.3 billion. Microsoft's cloud-focused business segment grew 20% from the same time last year to $24.1 billion for the three months ending Sept. 30. Its personal computing business, led by its Windows division, grew 17% to $13.2 billion. A big part of that growth came from Microsoft's Xbox video game business, which was boosted by its purchase of game publishing giant Activision Blizzard a year ago.

On a small network of islands north of Seattle, Washington, San Juan County just completed its first full year of 32-hour workweeks, reports CNN.

And Tuesday the county released a report touting "a host of positive outcomes — from recruiting to retention to employee happiness — and a cost savings of more than $975,000 compared to what the county would have paid if it met the union's pay increase demands." The county said the 32-hour workweek has attracted a host of new talent: Applications have spiked 85.5% and open positions are being filled 23.75% faster, while more employees are staying in their jobs — separation (employees quitting or retiring) dropped by 48%. And 84% of employees said their work-life balance was better. "This is meeting many of the goals that we set out to do when we implemented it," County Manager Jessica Hudson said. said, noting the county is looking for opportunities to expand the initiative...

Departments across San Juan County have implemented the 32-hour workweek differently, some staggering staffing to maintain their previous availability to the public while others have shortened schedules to be open just four days a week... "I tell people, you're not going to see things change from your perspective," said Joe Ingman, a park manager in the county. "Offices are going to stay open, bathrooms are going to get cleaned, grass is going to get mowed." His department adjusted schedules to stay staffed seven days a week, and while communication across shifts was an initial hurdle, issues were quickly ironed out. "It was probably the smoothest summer I've had, and I've been working in parks for over a decade," he said, crediting the new schedule as a boon for recruiting. While job postings used to languish unfilled for months, last summer the applicant pool was not only bigger but more qualified, and the two staffers he hired both cited coming to the county because of the 32-hour workweek.

"It's no more cost to the public to work 32 hours — but we have better applicants," he said. Ingman also said the four-day workweek has done wonders for his job satisfaction; he'd watched colleagues burn out for years, but now sees a path for his own future in the department... County employees have used their extra time off to spend less money on childcare, volunteer in their kids' schools, and contribute to the community... While San Juan County's motivation in adopting a shortened workweek was financial, the benefits its employees cite speak to a larger trend, as workplaces around the country increasingly explore flexible schedules to combat burnout and attract and retain talent.

A survey of CEOs this spring found nearly one third of large US companies were looking into solutions like four-day or four-and-a-half-day workweeks... Even without a reduction in total hours, a Gallup poll last year found a third day off would be widely embraced: 77% of US workers said a 4-day, 40-hour workweek would have a positive impact on their wellbeing.
One worker shared their thoughts with CNN. "Life shouldn't be about just working yourself into the ground..." And they added that "So far, I feel happy; I feel seen as an employee and as a human, and I feel like it could be a beautiful step forward for other people if we just trust it and try it."

They even had some advice for other employers. "Change happens by somebody actually doing the change. The only way we're going to find out if it works is by doing."

More than 120,000 bitcoin were stolen in a 2016 breach of Bitfinex. Seven years later the perpetrator pleaded guilty.

And Thursday he was sentenced to a five-year prison term, reports the Associated Press: Ilya Lichtenstein masterminded one of the largest-ever thefts from a virtual currency exchange before he and his wife, Heather Rhiannon Morgan, carried out an elaborate scheme to liquidate the stolen funds, according to federal prosecutors... "Over half a decade, the defendant engaged in what IRS agents described as the most complicated money laundering techniques they had seen to date," prosecutors wrote... The couple successfully laundered about 21 percent of the funds stolen from Bitfinex. The laundered money was worth at least $14 million at 2016 prices. Its value would have exceeded $1 billion at the time of their 2022 arrest.

Authorities seized the remaining funds, collectively valued at over $6 billion at current prices... An attorney for Bitfinex said the hack "devastated" its finances and its reputation with its customers, with the stolen funds accounting for approximately 36% of the company's assets at the time of theft. "Bitfinex had to take unprecedented and immediate action to ensure that any losses from the Hack would ultimately be borne by Bitfinex and its shareholders alone, not its customers," the lawyer, Barry Berke, wrote in a letter to the judge.

A prosecutor said Lichtenstein immediately began cooperating with federal authorities after his arrest, helping them with other cybercrime investigations. Over 96% of the stolen funds have been recovered, with help from Lichtenstein, according to defense attorney Samson Enzer. The "vast bulk" of the stolen money was never spent, the lawyer said.
Lichtenstein also "pleaded with the judge to spare his wife from prison, blaming himself for her involvement," according to the article. His wife — a rap artist who records under the name Razzlekhan — will be sentenced Monday, but has pleaded guilty to the same charge, and prosecutors are recommending an 18-month sentence.

The White House said it's completed a $6.6 billion grant agreement with Taiwan Semiconductor Manufacturing Company (TSMC) through the Chips and Science Act. "Today's announcement is among the most critical milestones yet in the implementation of the bipartisan CHIPS & Science Act, and demonstrates how we are ensuring that the progress made to date will continue to unfold in the coming years, benefitting communities all across the country," Biden said in a statement. The Hill reports: The grant is expected to create $65 billion of private investment by TSMC in Arizona, Biden said, which will include three new facilities and the creation of tens of thousands of jobs by the end of the decade. The first of the company's new facilities is on track to open next year. Biden earlier this year announced a slew of preliminary grant agreements with companies, including TSMC, through the CHIPS law. The announcement of a final agreement underscores how the administration is hoping to get those deals across the finish line before President-elect Trump takes office. [...]

Biden has repeatedly touted the importance of the CHIPS and Science Act, citing the prevalence of microchips that are used in everyday technology such as phones, cars, home appliances and more. Officials have said the law is critical to bolster domestic production of the chips to make the U.S. less reliant on foreign supply chains.

Server maker Super Micro Computer is facing mounting challenges after EY resigned as its auditor on October 24, citing concerns about management's integrity and ethical values. EY's departure came just months after replacing Deloitte & Touche, which had audited Super Micro for two decades through June 2023.

The resignation raises questions about potential issues Deloitte may have missed. Super Micro has appointed a special committee and hired legal and forensic accounting firms to investigate, though details remain undisclosed. The company faces a November 16 deadline to submit a compliance plan to Nasdaq regarding delayed financial reports. A former employee's lawsuit alleges improper revenue recognition between 2020-2022 under Deloitte's watch, prompting a Justice Department investigation. WSJ adds: Persuading another major audit firm to sign on under the current circumstances would be an impressive feat. EY in its resignation letter said it was "unwilling to be associated with the financial statements prepared by management."

Why would any other auditor feel differently?

Brazilian officials are scrambling to control a gambling boom that has led some citizens to take out loans with interest rates as high as 438% to fund their betting habits, sparking concerns about household debt levels.

The surge in online betting has doubled Brazil's gambling population to 52 million in six months, with the central bank estimating monthly gambling spending between 18-21 billion reais ($3.1-3.6 billion) through August 2024. Central Bank President Roberto Campos Neto said lower-income families are disproportionately affected, with 20% of government social program payments in August directed to online gambling sites.

The Finance Ministry has accelerated regulatory measures, requiring over 100 betting companies to submit operating paperwork ahead of schedule. New rules starting January 1 will allow authorities to limit bet amounts, block payment systems, and monitor for money laundering. President Luiz Inacio Lula da Silva recently raised concerns at the UN about gambling's impact on Brazil's poorest citizens, while officials are moving to ban credit card use for betting and restrict gambling advertisements.

ZDNet's Steven Vaughan-Nichols reports: [...] At KubeCon North America 2024 this week, CNCF executive director Priyanka Sharma said in her keynote, "Patent trolls are not contributors or even adopters in our ecosystem. Instead, they prey on cloud-native adopters by abusing the legal system. We are here to tell the world that these patent trolls don't stand a chance because CNCF is uniting the ecosystem to deter them. Like a herd of musk oxen, we will run them off our pasture." CNCF CTO Chris Aniszczyk added: "The reason trolls can make money is that many companies find it too expensive to fight back, so they pay trolls a settlement fee to avoid the even higher cost of litigation. Now, when a whole herd of companies band together like musk oxen to drive a troll off, it changes the cost structure of fighting back. It disrupts their economic model."

How? Jim Zemlin, the Linux Foundation's executive director, said, "We don't negotiate with trolls. Instead, with United Patents, we go to the PTO and crush those patents. We strive to invalidate them by working with developers who have prior art, bringing this to the attention of the USPTO, and killing patents. No negotiation, no settlement. We destroy the very asset that made patent trolls' business work. Together, since we've started this effort, 90% of the time, we've been able to go in there and destroy these patents." "It's time for us to band together," said Joanna Lee, CNCF's VP of strategic programs and legal. "We encourage all organizations in our ecosystem to get involved. Join the fight, enhance your own company's protection, protect your customers, enhance our community defense, and save money on legal expenses."

While getting your company and its legal department involved in the effort to fend off patent trolls is important, developers can also help. CNCF announced the Cloud Native Heroes Challenge, a patent troll bounty program in which cloud-native developers and technologists can earn swag and win prizes. They're asking you to find evidence of preexisting technology -- referred to by patent lawyers as "prior art" -- that can kill off bad patents. This could be open-source documentation (including release notes), published standards or specifications, product manuals, articles, blogs, books, or any publicly available information. All entrants who submit an entry that conforms to the contest rules will receive a free "Cloud Native Hero" t-shirt that can be picked up at any future KubeCon+CloudNativeCon. The winner will also receive a $3,000 cash prize.

In the inaugural contest, the CNCF is seeking information that can be used to invalidate Claim 1 from US Patent US-11695823-B1. This is the major patent asserted by Edge Networking Systems against Kubernetes users. As is often the case with such patents, it's much too broad. This patent describes a network architecture that facilitates secure and flexible programmability between a user device and across a network with full lifecycle management of services and infrastructure applications. That describes pretty much any modern cloud system. If you can find prior art that describes such a system before June 13, 2013, you could be a winner. Some such materials have already been found. This is already listed in the "known references" tab of the contest information page and doesn't qualify. If you care about keeping open-source software easy and cheap to use -- or you believe trolls shouldn't be allowed to take advantage of companies that make or use programs -- you can help. I'll be doing some digging myself.

An anonymous reader quotes a report from TechCrunch: U.K. consumer rights group 'Which?' is filing a legal claim against Apple under competition law on behalf of some 40 million users of iCloud, its cloud storage service. The collective proceeding lawsuit, which is seeking 3 billion pounds in compensation damages (around $3.8 billion at current exchange rates), alleges that Apple has broken competition rules by giving its own cloud storage service preferential treatment and effectively locking people into paying for iCloud at "rip-off" prices. "iOS has a monopoly and is in control of Apple's operating systems and it is incumbent on Apple not to use that dominance to gain an unfair advantage in related markets, like the cloud storage market. But that is exactly what has happened," Which wrote in a press release announcing filing the claim with the U.K.'s Competition Appeal Tribunal (CAT).

The lawsuit accuses Apple of encouraging users of its devices to sign up to iCloud for photo storage and other data storage needs, while simultaneously making it difficult for consumers to use alternative storage providers -- including by not allowing them to store or back-up all of their phone's data with a third-party provider. "iOS users then have to pay for the service once photos, notes, messages and other data go over the free 5GB limit," Which noted. The suit also accuses Apple of overcharging U.K. consumers for iCloud subscriptions owing to the lack of competition. "Apple raised the price of iCloud for UK consumers by between 20% and 29% across its storage tiers in 2023," it wrote, saying it's seeking damages for all affected Apple customers -- and estimating that individual consumers could be owed an average of 70 pounds (around $90), depending on how long they've been paying Apple for iCloud services. "Anyone who has 'obtained' iCloud services, including non-paying users, over the nine-year timeframe since the Consumer Rights Act came into force on October 1st, 2015," will be included in the claim. U.K.-based consumers will have to opt-out if they do not want to be included. "Consumers who live outside the U.K. and believe they are eligible to be included must actively opt-in to join the action," adds TechCrunch.

The FBI raided Polymarket CEO Shayne Coplan's Manhattan apartment, seizing his phone and electronic devices. A source close to the matter told The New York Post it was politically motivated due to Polymarket's successful prediction of Trump's election win. It's "grand political theater at its worst," the source said. "They could have asked his lawyer for any of these things. Instead, they staged a so-called raid so they can leak it to the media and use it for obvious political reasons."

Although no charges were filed, the raid has sparked controversy, with speculation of political retribution and concerns over potential market manipulation, as Polymarket faces scrutiny both in the U.S. and from French regulators. The New York Post reports: Coplan was not arrested and has not been charged, a Polymarket spokesperson told The Post on Wednesday evening. "Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections," the rep said. "We charge no fees, take no trading positions, and allow observers from around the world to analyze all market data as a public good."

Coplan posted on X after his run-in with the feds: "New phone, who dis?" Polymarket does not allow trading in the US, though bettors can bypass the ban by accessing the site through VPN. The FBI's investigation comes a week after Coplan said Polymarket is planning to return to the US. [...] In 2022, the online gambling platform was forced to pause its trading in the US and pay a $1.4 million penalty to settle charges with the Commodity Futures Trading Commission that it had failed to register with the agency. [In France, regulators are investigating Polymarket's compliance with national gambling laws, with concerns about unauthorized gambling activities within the country.] A Fortune report published a week before the election found widespread evidence of wash-trading on Polymarket. "Polymarket's Terms of Use expressly prohibit market manipulation," a Polymarket spokesperson told Fortune in a statement.

An anonymous reader quotes a report from Ars Technica: The classic PC games market is "in a sorry state," according to DRM-free and classic-minded storefront GOG. Small games that aren't currently selling get abandoned, and compatibility issues arise as technology moves forward or as one-off development ideas age like milk. Classic games are only 20 percent of GOG's catalog, and the firm hasn't actually called itself "Good Old Games" in 12 years. And yet, today, GOG announces that it is making "a significant commitment of resources" toward a new GOG Preservation Program. It starts with 100 games for which GOG's own developers are working to create current and future compatibility, keeping them DRM-free and giving them ongoing tech support, along with granting them a "Good Old Game: Preserved by GOG" stamp.

GOG is not shifting its mission of providing a DRM-free alternative to Steam, Epic, and other PC storefronts, at least not entirely. But it is demonstrably excited about a new focus that ties back to its original name, inspired in some part by its work on Alpha Protocol. "We think we can significantly impact the classics industry by focusing our resources on it and creating superior products," writes Arthur Dejardin, head of sales and marketing at GOG. "If we wanted to spread the DRM-free gospel by focusing on getting new AAA games on GOG instead, we would make little progress with the same amount of effort and money (we've been trying various versions of that for the last 5 years)."

What kind of games? Scanning the list of Good Old Games, most of them are, by all accounts, both good and old. Personally, I'm glad to see the Jagged Alliance games, System Shock 2, Warcraft I & II, Dungeon Keeper Gold and Theme Park, SimCity 3000 Unlimited, and the Wing Commander series (particularly, personally, Privateer). Most of them are, understandably, Windows-only, though Mac support extends to 34 titles so far, and Linux may pick up many more through Proton compatibility, beyond the 19 native titles to date. [...] [I]f you see the shiny foil-ish GOG badge on a game, it's an assurance that GOG has done all it can to bring forward a classic title. It's important work, too. "Preserving" games doesn't just mean locking a stable media in a vault, but keeping games accessible, and playable.

Amazon has discontinued its secretive "Encore" project to develop an at-home fertility tracker, resulting in layoffs for around 100 employees. The project, part of Amazon's Grand Challenge division, aimed to launch a device and app that would predict fertility through saliva testing but was ultimately terminated to control costs. CNBC reports: The project was born out of the company's 2020 acquisition of Wisconsin-based startup bluDiagnostics, the sources said. BluDiagnostics was founded in 2015 by Weibel, Katie Brenner and Jodi Schroll, all of whom joined Grand Challenge. The startup had developed a thermometer-like device, called FertilityFinder, to help women track their fertility from home by testing their saliva and measuring two key hormones, estradiol and progesterone. The results of the test were viewable through a corresponding app. Business Insider reported on aspects of the fertility device in 2022, when its codename was Project Tiberius.

The team was working to develop its own saliva collection device and mobile app, which could predict when a user might be in the fertile window. Users could also log their period symptoms, sexual activity and other data to assist with tracking their fertility. There are similar offerings on the market from companies including Inne, Oova, Ava and Mira, along with fertility and ovulation tracking apps such as Flo, Clue and Max Levchin's Glow. Amazon initially aimed to release the product this year, but the timing was pushed out after the team encountered technical issues with the device, one of the people said. It was a costly endeavor and required significant upfront investments for lab research and development, in addition to the high salaries for scientists and engineers, the sources said, adding that the team's weekly overhead was roughly $1.5 million. Amazon didn't comment on the figure. Only one project now remains active within Grand Challenge. Its focus is on health tech, the people said. "We regularly review our businesses to ensure we focus on areas where we can make the biggest difference for customers," said Amazon spokesperson Margaret Callahan. "Following a recent review, we've decided to discontinue this project within Grand Challenge, and we're working directly with employees whose roles are impacted to support them through the transition and help them find other opportunities within Amazon."

After setting a record high yesterday, Bitcoin continued its remarkable rally, briefly surging past the $90,000 mark. Since Election Day, the cryptocurrency has gained nearly 30%, adding approximately $20,000 to its value. From a previous report: Bitcoin hit a peak of $90,000 on Coinbase at 12:56 PST on Nov. 12 and is up 11% over the past day, per TradingView data. The cryptocurrency is now just over 11% away from reaching $100,000.

Customers have formed new habits of regularly pausing subscriptions and returning to them within a year. From a report: As subscription prices rise and streaming-centric home entertainment becomes the norm, families are establishing their own hierarchies of always-on services versus those that come and go with seasons of hit shows or sports. New data from subscription analytics provider Antenna offer a deeper look at the subscription pausing habits customers are developing as services like Netflix, Disney+ and Apple TV+ become the go-to way of watching TV in many households, instead of cable.

The monthly median percentage of premium streaming video subscribers who rejoined the same service they had canceled within the prior year was 34.2% in the first nine months of 2024, up from 29.8% in 2022. The habit of pausing and resuming service means that the industrywide rate of customer defections, which has risen over the past year, is less pronounced than it appears. The average rate of U.S. customer cancellations among premium streaming video services reached 5.2% in August, but after factoring in re-subscribers, the rate of defections was lower at 3.5%.

The increasingly ingrained habit underscores the importance of streamers regularly delivering hit shows and films as well as live fare such as sporting events. Streaming services are trying to use a mix of bundles, promotions, well-timed marketing emails and lower-cost ad-supported plans to lure customers back faster or help them feel they are getting enough value to stick around longer.

The FTX estate has filed a lawsuit against Binance and former CEO Changpeng Zhao, seeking to recover $1.76 billion, alleging a "fraudulent" 2021 share deal that involved funding from FTX's insolvent Alameda Research. The suit also accuses Zhao of misleading social media posts that allegedly spurred customer withdrawals and contributed to FTX's collapse. CNBC reports: In a Sunday filing with a Delaware court, FTX cites a 2021 transaction in which Binance, Zhao and others exited their investment in FTX, selling a 20% stake in the platform and a 18.4% stake in its U.S.-based entity West Realm Shires back to the company. The FTX estate alleges that the share repurchase was funded by FTX's Alameda Research division through a combination of the company's and Binance's exchange tokens, as well as Binance's dollar-pegged stablecoin.

"Alameda was insolvent at the time of the share repurchase and could not afford to fund the transaction," the suit claims, labeling the deal agreed with FTX co-founder Sam Bankman-Fried -- who's now serving a 25-year sentence over fraud linked to the downfall of his exchange -- a "constructive fraudulent transfer." Binance denies the allegations, saying in an emailed statement, "The claims are meritless, and we will vigorously defend ourselves."

Most companies are starting to figure out how AI will change the way they do business. Chegg is trying to avoid becoming its first major victim. WSJ: The online education company was for many years the go-to source for students who wanted help with their homework, or a potential tool for plagiarism. The shift to virtual learning during the pandemic sent subscriptions and its stock price to record highs.

Then came ChatGPT. Suddenly students had a free alternative to the answers Chegg spent years developing with thousands of contractors in India. Instead of "Chegging" the solution, they began canceling their subscriptions and plugging questions into chatbots. Since ChatGPT's launch, Chegg has lost more than half a million subscribers who pay up to $19.95 a month for prewritten answers to textbook questions and on-demand help from experts. Its stock is down 99% from early 2021, erasing some $14.5 billion of market value. Bond traders have doubts the company will continue bringing in enough cash to pay its debts.

A new article at Reason.com argues that U.S. courts "are coming for digital libraries." In September, a federal appeals court dealt a major blow to the Internet Archive — one of the largest online repositories of free books, media, and software — in a copyright case with significant implications for publishers, libraries, and readers. The U.S. Court of Appeals for the 2nd Circuit upheld a lower court ruling that found the Internet Archive's huge, digitized lending library of copyrighted books was not covered by the "fair use" doctrine and infringed on the rights of publishers. Agreeing with the Archive's interpretation of fair use "would significantly narrow — if not entirely eviscerate — copyright owners' exclusive right to prepare derivative works," the 2nd Circuit ruled. "Were we to approve [Internet Archive's] use of the works, there would be little reason for consumers or libraries to pay publishers for content they could access for free."
Others disagree, according to some links shared in a recent email from the Internet Archive. Public Knowledge CEO Chris Lewis argues the court's logic renders the fair use doctrine "almost unusuable". And that's just the beginning... This decision harms libraries. It locks them into an e-book ecosystem designed to extract as much money as possible while harvesting (and reselling) reader data en masse. It leaves local communities' reading habits at the mercy of curatorial decisions made by four dominant publishing companies thousands of miles away. It steers Americans away from one of the few remaining bastions of privacy protection and funnels them into a surveillance ecosystem that, like Big Tech, becomes more dangerous with each passing data breach.
But lawyer/librarian Kyle K. Courtney writes that the case "is specific only to the parties, and does not impact the other existing versions of controlled digital lending." Additionally, this decision is limited to the 2nd Circuit and is not binding anywhere else — in other words, it does not apply to the 47 states outside the 2nd Circuit's jurisdiction. In talking with colleagues in the U.S. this week and last, many are continuing their programs because they believe their digital loaning programs fall outside the scope of this ruling... Moreover, the court's opinion focuses on digital books that the court said "are commercially available for sale or license in any electronic text format." Therefore, there remains a significant number of materials in library collections that have not made the jump to digital, nor are likely to, meaning that there is no ebook market to harm — nor is one likely to emerge for certain works, such as those that are no longer commercially viable...

This case represents just one instance in an ongoing conversation about library lending in the digital age, and the possibility of appeal to the U.S. Supreme Court means the final outcome is far from settled.
Some more quotes from links shared by Internet Archive:

• "It was clear that the only reason all the big publishers sued the Internet Archive was to put another nail in the coffin of libraries and push to keep this ebook licensing scheme grift going. Now the courts have helped." — TechDirt

• "The case against the Internet Archive is not just a story about the ruination of an online library, but a grander narrative of our times: how money facilitates the transference of knowledge away from the public, back towards the few." — blogger Hannah Williams

Thanks to Slashdot reader fjo3 for sharing the news.

On its 20th anniversary, Firefox "is still going strong, and it is a better browser today than it ever was," according to TechCrunch.

In an interview, Mozilla's interim CEO says one of the first things they did when was to "unlock a bunch of money towards Firefox product development... I've been in enough places where people tend to forget about the core business, and they stop investing in it, because they get distracted by shiny things — and then they regret it." "Firefox is incredibly important, and it is our core. We've actually put more investment into it this year and into connecting with our communities, into bringing out and testing features that are positive and creating good experiences for folks. That's been a huge priority for me and for the company this year, and it's showing up in the results."

She acknowledged that Mozilla doesn't have the device distribution that benefits many of Firefox's competitors, especially on mobile, but she did note that the Digital Marks Act (DMA) in Europe — which means Apple, for example, has to provide a browser choice screen on iOS — is working. "With the DMA, even though the implementation hasn't been outstanding, we're seeing a real shift. When people have the choice to choose Firefox, they're choosing Firefox," she said...

To kick-start some of this growth, Mozilla is looking at reaching new, and younger, users. Chambers noted that Mozilla is running a number of marketing campaigns to make people aware of Firefox, especially those who are only now starting to make their first browser choices. With them, she believes, Mozilla's messaging around privacy lands especially well.
In a future where browsers include AI agents that take actions on behalf of users, there might be more confidence in a browser designed for privacy and transparency, the interim CEO points out — as part of their larger mission. "What I love about Firefox is that it really provides users with an alternative choice of a browser that is just genuinely designed for them.

"We have, from its very inception and throughout, really wanted to create a browser that prioritizes people over profit, prioritizes privacy over anything else, and to have that option, the choice."

Max will begin a gradual password-sharing crackdown with "soft messaging" over the next few months, with a potential price increase to follow. The Verge reports: During Warner Bros. Discovery's Q3 earnings call on Thursday, chief financial officer Gunnar Wiedenfels said this initial rollout would be followed by more progress in 2025 and 2026. Wiedenfels called password sharing "a form of price rises," as the company is "asking members who have not signed up, or multi-household members to pay a little bit more." This isn't the first time we've heard about Max's interest in password sharing, but now we have more details about when -- and how -- it will all begin. [...]

Wiedenfels didn't rule out the possibility of a Max price increase, either. He said that the "premium nature" of the service leaves "a fair amount of room to continue to push a price we've been judicious about." Max last raised prices across its ad-free plans in June.