Microsoft beats Wall Street expectations with $90B in revenue
Microsoft has posted strong quarterly earnings, surpassing expectations with significant growth in its cloud computing platform and a boost in paid AI users. The company earned $90 billion, or $4.81 per share, in the April-June quarter, up 18% from a year earlier. Analysts had expected $4.24 per share on $87.62 billion in revenue. Microsoft Cloud revenue rose 27% year-over-year, driven by demand for Azure and AI services. Azure and other cloud services revenue increased 43%. CEO Satya Nadella highlighted Azure's $100 billion revenue milestone and 30 million paid seats for Microsoft 365 Copilot. Microsoft's shares rose about 3% in after-hours trading.
Elon Musk's xAI sues Minnesota over its first-in-the-nation law banning 'nudification' technology
Elon Musk’s company xAI is suing Minnesota over the state’s first-in-the-nation law that bans “nudification” technology on websites and apps. The lawsuit was filed Monday in federal court and potentially provides a test for how far states can go in constitutionally regulating the use of artificial intelligence. xAI's chatbot and image generator Grok is available online. It says Minnesota’s law is overly broad and bans many constitutionally protected images and videos. The law is distinct from state and federal laws that typically penalize people who use AI tools to create sexually explicit deepfakes. xAI says its terms of service for using Grok prohibit using it for illegal, harmful, or abusive activities, including nudification.
Russia accuses Telegram CEO Pavel Durov of aiding terrorism in its latest digital crackdown
Russian authorities have charged Pavel Durov, the founder and CEO of the popular messaging app Telegram, with aiding terrorism and placed him on an international wanted list. The Federal Security Service, or FSB, accused Telegram of failing to remove content allegedly used by Ukrainian intelligence and extremist groups. This comes as Russia intensifies efforts to control the internet, restricting Telegram and other platforms. Durov, a billionaire who lives in Dubai, could face life in prison if convicted. Since Moscow's full-scale invasion of Ukraine in 2022, Russian authorities have been cracking down on internet freedom, banning platforms like Facebook and Instagram.
Telegram's billionaire founder Pavel Durov has faced legal woes before — in Russia and France
The billionaire founder and CEO of the Telegram messaging app has repeatedly run into trouble with both the Kremlin and Western officials as he cast himself as a champion of free speech. Russia’s Federal Security Service accuses Pavel Durov of aiding what it called terrorist activities. It also said it was adding Durov’s name to international wanted lists. The Russian-born 41-year-old Durov responded by posting a photo of himself raising a middle finger on Telegram’s official account on X. The case marks an escalation of the Kremlin’s efforts to tighten control over the internet and digital communications amid growing public fatigue with the 4-year-old war in Ukraine and its economic fallout.
US bans foreign-made humanoid robots, targeting China over national security
HONG KONG (AP) — The U.S. Federal Communications Commission is banning imports of new foreign-made humanoid robots and power inverters, citing national security risks. The move targets China, which dominates the global market for humanoid robots. The FCC's ban also includes quadruped robots, often called robot dogs. The ban could test relations with Beijing ahead of a planned U.S. visit by Chinese leader Xi Jinping in September. China has criticized the move, accusing the U.S. of protectionism. The ban follows other U.S. restrictions on Chinese products.
New York school pauses plan to deploy humanlike AI robot teacher after backlash
NEW YORK (AP) — A school district in a rural corner of upstate New York is hitting pause on plans to deploy an AI-powered, humanoid robot in the classroom. Salamanca City Central School District had purchased the female-looking robot to enhance the education of high school students studying robotics and technology fields starting this fall. But state education officials and local residents raised concerns about how students' personal information would be used and what data privacy and security protections would be in place. Unionized teachers also criticized the robot maker’s ties to a company that produces hyper realistic sex robots.
Historic divinity school is offering the first doctoral degree in ‘AI and Moral Agency’
At the end of the Civil War, a Union soldier and Baptist minister founded a school in Raleigh, North Carolina, to provide formerly enslaved people with religious literacy. Now that same school — Shaw University — wants to provide literacy of a new kind: AI literacy. Starting next year, Shaw’s Divinity School plans to offer a new degree track: A Doctor of Education in artificial intelligence and moral agency. When it admits its first cohort in January, it will become the first theological school part of the Association of Theological Schools network to offer a degree in AI on either the masters or doctoral level.
eBay agreed to pay nearly $50 million to couple sent cockroaches, bloody pig mask
BOSTON (AP) — eBay agreed to pay nearly $50 million to Massachusetts journalists David and Ina Steiner under a newly finalized settlement resolving a lawsuit over a 2019 cyberstalking campaign carried out by former company employees. The agreement follows the collapse of an earlier tentative settlement and also includes $7 million in charitable contributions, including donations supporting First Amendment causes, and no confidentiality provision, allowing the Steiners to speak publicly about the case. As part of the settlement, eBay issued a statement apologizing for the harassment, calling it “wrong, reprehensible and should never have happened” and acknowledging the “unprofessional tone” of communications by several former executives.
Democrat's TV ad targets data centers in drive to oust Republican from swing Pennsylvania House seat
HARRISBURG, Pa. (AP) — Democrat Paige Cognetti is taking a shot at artificial intelligence data centers in her challenge to Republican congressman Rob Bresnahan, saying “we are not for sale” in a TV ad in a swing Pennsylvania district. The race between Scranton Mayor Cognetti and Bresnahan is considered one of the Democratic Party’s best opportunities to pick up a seat in November. Democrats want to take control of the U.S. House and block President Donald Trump’s agenda. Cognetti is airing the ad in a district that’s been buffeted by data center projects. Bresnahan has introduced legislation he says would limit a corporation’s right to sue over local zoning decisions denying an application to build a data center.
Workplaces look for cheaper AI as ‘tokenmaxxing’ fades as a corporate fad
A corporate fad of “tokenmaxxing” on artificial intelligence technology is hitting its limits as workplaces throwing AI at everything are seeing the costs rise without a similar spike in productivity. What started as tech industry-fueled springtime hype over squeezing as much AI-generated work as possible out of products like OpenAI’s ChatGPT and Anthropic’s Claude has shifted to a summertime backlash. “Tokenmaxxing” refers to maximizing usage of tokens — the building blocks of generative AI that correspond to small pieces of text that an AI system reads or writes. There’s typically a limit to how many you can use, with pricier versions of AI products offering higher caps.
