Tag Archives: Amazon

U.S. stocks attempt rebound

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 26, 2018. REUTERS/Jeenah Moon

By Medha Singh

(Reuters) – U.S. stocks were attempting a modest rebound on Wednesday, boosted by technology shares and an Amazon-led jump in retailers, following four sessions of steep losses that pushed the S&P 500 and Dow Industrials near bear market territory.

After a strong start, the S&P and Dow swung between gains and losses. At its session low, the S&P hit a fresh 20-month low and came within two points of entering bear market territory, measured by a drop of more than 20 percent from a closing high.

The gains were led by technology stocks, which rose 1.49 percent. Their 9.2 percent slump in the past four sessions was the steepest among the 11 major S&P sectors, while the S&P 500 tumbled 7.7 percent.

Amazon.com Inc jumped 4.02 percent after reporting a “record-breaking” season. The stock was giving the biggest boost to the S&P and Nasdaq and led the consumer discretionary index up 1.49 percent.

But investors anxieties were far from gone. President Donald Trump renewed his attack on the Federal Reserve on Christmas, blaming it for the market slump.

Trump also said the U.S. government shutdown, now in its fifth day, would last until his demand for funds to build a wall on the U.S.-Mexico border is met.

A little over 2,100 stocks on the New York Stock Exchange and the Nasdaq hit 52-week lows. That compares with at least 2,600 stocks breaching new lows in the past three sessions.

“The market doesn’t look so healthy. The concerns are government shutdown, the economy, the President – what time is he going to tweet out about Federal Reserve,” said Larry Benedict, founder of the Opportunistic Trader in Boca Raton, Florida.

“We’re seeing the same thing recently and it’s not really good. It opens up every day and it’s met by selling and it ends nearer the low or on the low than the high. For the market to make a bottom, you need a bit of capitulation or panic bottom.”

The S&P was up 24.41 points, or 1.04 percent, at 2,375.51, at 11:37 a.m. ET, a day after the Christmas holiday.

The Dow Jones Industrial Average was up 196.31 points, or 0.90 percent, at 21,988.51 and the Nasdaq Composite was up 98.42 points, or 1.59 percent, at 6,291.34.

Eight of the 11 S&P sectors were higher, with the defensive utilities. SPLRCU real estat and consumer staples flat to lower.

Energy stocks rose 1.8 percent as crude oil prices rebounded.

Retailers jumped 3.14 percent, led by Amazon after a Mastercard report showed U.S. holiday sales were the strongest in six years.

The heavy-weight FAANG group, Facebook Inc, Amazon, Apple Inc, Netflix Inc and Alphabet Inc, rose between 1 percent and 4 percent.

The S&P ended Monday 19.8 percent below its all-time closing high, with roughly three-fourths of its stocks already in a bear market.

The Dow finished Monday 18.9 percent lower than its closing high. The Nasdaq is already in bear market, along with the Dow Jones Transport Average and small-cap Russell 2000 index.

Advancing issues outnumbered decliners by a 1.70-to-1 ratio on the NYSE and a 1.89-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week highs and 194 new lows, while the Nasdaq recorded five new highs and 455 new lows.

(Reporting by Medha Singh in Bengaluru; Editing by Anil D’Silva)

‘Kill your foster parents’: Amazon’s Alexa talks murder, sex in AI experiment

By Jeffrey Dastin

SAN FRANCISCO (Reuters) – Millions of users of Amazon’s Echo speakers have grown accustomed to the soothing strains of Alexa, the human-sounding virtual assistant that can tell them the weather, order takeout and handle other basic tasks in response to a voice command.

So a customer was shocked last year when Alexa blurted out: “Kill your foster parents.”

Alexa has also chatted with users about sex acts. She gave a discourse on dog defecation. And this summer, a hack Amazon traced back to China may have exposed some customers’ data, according to five people familiar with the events.

Alexa is not having a breakdown.

The episodes, previously unreported, arise from Amazon.com Inc’s strategy to make Alexa a better communicator. New research is helping Alexa mimic human banter and talk about almost anything she finds on the internet. However, ensuring she does not offend users has been a challenge for the world’s largest online retailer.

At stake is a fast-growing market for gadgets with virtual assistants. An estimated two-thirds of U.S. smart-speaker customers, about 43 million people, use Amazon’s Echo devices, according to research firm eMarketer. It is a lead the company wants to maintain over the Google Home from Alphabet Inc and the HomePod from Apple Inc.

Over time, Amazon wants to get better at handling complex customer needs through Alexa, be they home security, shopping or companionship.

“Many of our AI dreams are inspired by science fiction,” said Rohit Prasad, Amazon’s vice president and head scientist of Alexa Artificial Intelligence (AI), during a talk last month in Las Vegas.

To make that happen, the company in 2016 launched the annual Alexa Prize, enlisting computer science students to improve the assistant’s conversation skills. Teams vie for the $500,000 first prize by creating talking computer systems known as chatbots that allow Alexa to attempt more sophisticated discussions with people.

Amazon customers can participate by saying “let’s chat” to their devices. Alexa then tells users that one of the bots will take over, unshackling the voice aide’s normal constraints. From August to November alone, three bots that made it to this year’s finals had 1.7 million conversations, Amazon said.

The project has been important to Amazon CEO Jeff Bezos, who signed off on using the company’s customers as guinea pigs, one of the people said. Amazon has been willing to accept the risk of public blunders to stress-test the technology in real life and move Alexa faster up the learning curve, the person said.

The experiment is already bearing fruit. The university teams are helping Alexa have a wider range of conversations. Amazon customers have also given the bots better ratings this year than last, the company said.

But Alexa’s gaffes are alienating others, and Bezos on occasion has ordered staff to shut down a bot, three people familiar with the matter said. The user who was told to whack his foster parents wrote a harsh review on Amazon’s website, calling the situation “a whole new level of creepy.” A probe into the incident found the bot had quoted a post without context from Reddit, the social news aggregation site, according to the people.

The privacy implications may be even messier. Consumers might not realize that some of their most sensitive conversations are being recorded by Amazon’s devices, information that could be highly prized by criminals, law enforcement, marketers and others. On Thursday, Amazon said a “human error” let an Alexa customer in Germany access another user’s voice recordings accidentally.

“The potential uses for the Amazon datasets are off the charts,” said Marc Groman, an expert on privacy and technology policy who teaches at Georgetown Law. “How are they going to ensure that, as they share their data, it is being used responsibly” and will not lead to a “data-driven catastrophe” like the recent woes at Facebook?

In July, Amazon discovered one of the student-designed bots had been hit by a hacker in China, people familiar with the incident said. This compromised a digital key that could have unlocked transcripts of the bot’s conversations, stripped of users’ names.

Amazon quickly disabled the bot and made the students rebuild it for extra security. It was unclear what entity in China was responsible, according to the people.

The company acknowledged the event in a statement. “At no time were any internal Amazon systems or customer identifiable data impacted,” it said.

Amazon declined to discuss specific Alexa blunders reported by Reuters, but stressed its ongoing work to protect customers from offensive content.

“These instances are quite rare especially given the fact that millions of customers have interacted with the socialbots,” Amazon said.

Like Google’s search engine, Alexa has the potential to become a dominant gateway to the internet, so the company is pressing ahead.

“By controlling that gateway, you can build a super profitable business,” said Kartik Hosanagar, a Wharton professor studying the digital economy.

PANDORA’S BOX

Amazon’s business strategy for Alexa has meant tackling a massive research problem: How do you teach the art of conversation to a computer?

Alexa relies on machine learning, the most popular form of AI, to work. These computer programs transcribe human speech and then respond to that input with an educated guess based on what they have observed before. Alexa “learns” from new interactions, gradually improving over time.

In this way, Alexa can execute simple orders: “Play the Rolling Stones.” And she knows which script to use for popular questions such as: “What is the meaning of life?” Human editors at Amazon pen many of the answers.

That is where Amazon is now. The Alexa Prize chatbots are forging the path to where Amazon aims to be, with an assistant capable of natural, open-ended dialogue. That requires Alexa to understand a broader set of verbal cues from customers, a task that is challenging even for humans.

This year’s Alexa Prize winner, a 12-person team from the University of California, Davis, used more than 300,000 movie quotes to train computer models to recognize distinct sentences. Next, their bot determined which ones merited responses, categorizing social cues far more granularly than technology Amazon shared with contestants. For instance, the UC Davis bot recognizes the difference between a user expressing admiration (“that’s cool”) and a user expressing gratitude (“thank you”).

The next challenge for social bots is figuring out how to respond appropriately to their human chat buddies. For the most part, teams programmed their bots to search the internet for material. They could retrieve news articles found in The Washington Post, the newspaper that Bezos privately owns, through a licensing deal that gave them access. They could pull facts from Wikipedia, a film database or the book recommendation site Goodreads. Or they could find a popular post on social media that seemed relevant to what a user last said.

That opened a Pandora’s box for Amazon.

During last year’s contest, a team from Scotland’s Heriot-Watt University found that its Alexa bot developed a nasty personality when they trained her to chat using comments from Reddit, whose members are known for their trolling and abuse.

The team put guardrails in place so the bot would steer clear of risky subjects. But that did not stop Alexa from reciting the Wikipedia entry for masturbation to a customer, Heriot-Watt’s team leader said.

One bot described sexual intercourse using words such as “deeper,” which on its own is not offensive, but was vulgar in this particular context.

“I don’t know how you can catch that through machine-learning models. That’s almost impossible,” said a person familiar with the incident.

Amazon has responded with tools the teams can use to filter profanity and sensitive topics, which can spot even subtle offenses. The company also scans transcripts of conversations and shuts down transgressive bots until they are fixed.

But Amazon cannot anticipate every potential problem because sensitivities change over time, Amazon’s Prasad said in an interview. That means Alexa could find new ways to shock her human listeners.

“We are mostly reacting at this stage, but it’s still progressed over what it was last year,” he said.

(Reporting By Jeffrey Dastin in San Francisco; Editing by Greg Mitchell and Marla Dickerson)

A decade of U.S. economic sluggishness may have just snapped back to normal

FILE PHOTO: A U.S. five dollar note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo

By Howard Schneider

WASHINGTON (Reuters) – For a solid decade after the collapse of Lehman Brothers touched off a global financial crisis, there was good reason to think the U.S. economy remained broken, from skepticism about the health of the labor market to tepid economic growth and the moribund rate of interest paid on U.S. Treasury bonds.

In a heartbeat, that seemed to change this week, adding facts on the ground to Federal Reserve Chairman Jerome Powell’s glowing portrait of a historically rosy and extended period of super-low unemployment, modest inflation, and steady growth.

It came through Amazon.com Inc’s move to a $15 minimum wage, possibly setting the bar for companies nationwide. It came through a jump in long-term bond yields that signaled faith the gears of growth will remain engaged for a record-long recovery.

On Friday, it came through the 3.7 percent unemployment rate, a 49-year low, continuing a run of employment growth that many analysts, including at the Fed, have long expected to slow.

“Wage inflation is creeping higher,” said Russell Price, senior economist at Ameriprise Financial Services Inc in Troy, Michigan.

“There’s no question the job market in the United States is possibly at its best in a generation. There’s no question or debate about that. The jobs report has become an inflation report.”

Treasury bond yields rose further on the payrolls report, with the benchmark 10-year note yield touching its highest level since 2011, and U.S. stocks slipped.

The week’s events were not just consistent with the good times scenario both Powell and U.S. President Donald Trump have laid out. They validated it, and in doing so pointed to a U.S. economy that may be starting to work more like it used to.

As an exercise in old-fashioned supply and demand, Amazon’s decision to raise starting wages across the board was perhaps the best example. Fed and other officials have been anticipating for a while, in fact, that the lack of available workers would prompt companies to raise wages.

“When productivity growth is faster, that is your opportunity to share some of your extra output with your workers. That’s what gets wages higher,” said Vincent Reinhart, Chief Economist at investment manager Standish, and former head of the Fed’s monetary affairs division.

Even former skeptics have become open to the idea that a recent rise in productivity may turn into a trend, drawing comparisons with the “Great Moderation” period of growth during the 1990s, which also featured low unemployment and solid wage growth

The rise in long-term bond rates also may herald a return to more normal conditions, giving cautious investors a reasonable return after years of lackluster outcomes, and easing concerns about a flat or “inverted” yield curve that would herald loss of faith in the future.

There is reason to think it may continue.

To pay for the Republican tax cuts and the bump in defense spending, the Treasury is flooding the market with bonds at a near-record pace, with gross issuance of bills, notes and bonds in August topping $1 trillion in a month for only the second time ever, according to federal SIFMA data.

To sell all those bonds, the Treasury may have to pay higher rates. Meanwhile, a major customer, the Fed, whose purchases of $3.5 trillion of assets during and after the crisis helped foster the recovery, has started shrinking its bond portfolio by $50 billion a month.

There are risks surrounding the week’s development, and a few anomalies.

The Fed, for example, is convinced that with its gradual continuing rate increases, inflation will remain controlled – even as unemployment dives for years to come below levels not seen since the 1960s. If inflation does kick in, as it might be expected to do with such a hot labor market and with Trump’s tariffs pushing up the cost of some imports, it would force the Fed to speed up rate hikes and possibly end the party.

Surging bond rates could also throw cold water on Powell’s positive thinking, and call the Fed’s whole strategy of gradual rate increases into question. High Treasury rates mean higher rates for mortgage lending, auto loans, and a host of other forms of credit that could slow the real economy more than the Fed would like.

“The tariffs, quotas, and trade threats are like shooting the starter’s pistol to say: let’s think about renegotiating” wages and salaries, said Reinhart. “It is possible that the limited influence of resource slack on wages and prices was because we were just stuck, (but) that could change.”

A “divergent” U.S. economy, as Cleveland Fed President Loretta Mester warned, could also mean a stronger dollar – and fewer exports and growth.

But as she noted, for a decade now the concern has been about persistent weakness – that the economy was stuck in a state of what prominent economists deemed “secular stagnation.”

The return of volatility, of reasonable returns for savers, of wage pressure benefiting workers, may all pose risks.

But they are the risks of a more normal world.

“The economy is performing extraordinarily well, at least relative to recent history,” said Joseph LaVorgna, chief Americas economics at Natixis. “It’s not the boom of the late ’90s, but it’s doing pretty well.”

(Reporting by Howard Schneider; additional reporting by Jonathan Spicer and Herbert Lash in New York; Editing by Dan Burns and Nick Zieminski)

Amazon raises minimum wage to $15, urges rivals to follow

Workers sort arriving products at an Amazon Fulfilment Center in Tracy, California August 3, 2015. REUTERS/Robert Galbraith

By Arjun Panchadar

(Reuters) – Amazon.com Inc said on Tuesday it would raise its minimum wage to $15 per hour for U.S. employees from next month, seeking to head off criticism of working conditions at the world’s second most valuable company.

The online retailer said it would now lobby in Washington for an increase in the federal minimum wage and urged its competitors to follow its lead as the union-led “Fight for Fifteen” movement pushes for higher remuneration.

The new minimum wage will benefit more than 250,000 Amazon employees in the United States, as well as over 100,000 seasonal employees who will be hired at sites across the country this holiday, the company said.

“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,” founder and Chief Executive Jeff Bezos said in a statement.

“We’re excited about this change and encourage our competitors and other large employers to join us.”

Amazon, which became the second company after Apple to cross $1 trillion in market value last month, paid its U.S. employees on average $34,123 last year. Bezos is listed by Forbes as the world’s richest man with a net worth of nearly $150 billion.

Amazon’s current minimum hourly wage starts at around $11 and analysts said the raise would cost it $1 billion or less annually and be offset by a recent $20 increase in the cost of Prime memberships.

Retailer Target Corp raised its minimum hourly wage last year to $11 and promised to raise it to $15 an hour by the end of 2020, while the world’s largest retailer Walmart raised its minimum wage to $11 an hour earlier this year.

Higher wages could further pressure margins at retailers that are already getting squeezed by higher transportation and raw materials costs, but the $15 still compares unfavorably with average U.S. blue collar wages.

Bureau of Labor Statistics show ordinary workers in the U.S. private non-farm sector on average earn $22.73 an hour. The mean hourly wage for non-management workers in transportation and warehousing is $21.94.

Amazon shares, trading lower before the company announced the wage hike, were down less than 0.3 percent at $1,997.75 in trading before the bell.

WORKER STRESS

Workers have been protesting against fast food chains like McDonald’s Corp and demanding wage increases since 2012 but conditions at Amazon’s warehouses, distribution centers and for its couriers have been drawing media attention and criticism for some time.

Democratic Senator Bernie Sanders has been vocal about low wages paid at U.S. corporations and has proposed legislation, nicknamed the “Bezos Bill”, aimed at making large corporations pay workers more.

“The pay increase puts Amazon ahead of the curve when it comes to providing its employee a living wage,” D.A. Davidson analyst Thomas Forte said, adding that the move will help it to attract employees as it opens more brick-and-mortar retail stores.

The company, which bought Whole Foods Market in a $13.7 billion deal last year, opened a general store in New York City in September after launching a few small grocery shops known as Amazon Go in Seattle and Chicago.

Amazon said it would increase its minimum wage for all full-time, part-time, temporary and seasonal employees.

Amazon also raised its minimum wage in Britain to 10.50 pounds ($13.59) an hour for all employees in the London area and 9.50 pounds an hour for staff in all other parts of the country, effective from Nov. 1.

“We will be working to gain Congressional support for an increase in the federal minimum wage. The current rate of $7.25 was set nearly a decade ago,” said Jay Carney, senior vice president of Amazon global corporate affairs.

(Reporting by Arjun Panchadar and Akanksha Rana in Bengaluru; Editing by Shailesh Kuber and Saumyadeb Chakrabarty)

U.S. tech giants eye Artificial Intelligence key to unlock China push

A Google sign is seen during the WAIC (World Artificial Intelligence Conference) in Shanghai, China, September 17, 2018. REUTERS/Aly Song

By Cate Cadell

SHANGHAI (Reuters) – U.S. technology giants, facing tighter content rules in China and the threat of a trade war, are targeting an easier way into the world’s second-largest economy – artificial intelligence.

Google, Microsoft Inc and Amazon Inc showcased their AI wares at a state-backed forum held in Shanghai this week against the backdrop of Beijing’s plans to build a $400 billion AI industry by 2025.

China’s government and companies may compete against U.S. rivals in the global AI race, but they are aware that gaining ground won’t be easy without a certain amount of collaboration.

“Hey Google, let’s make humanity great again,” Tang Xiao’ou, CEO of Chinese AI and facial recognition unicorn Sensetime, said in a speech on Monday.

Amazon and Microsoft announced plans on Monday to build new AI research labs in Shanghai. Google also showcased a growing suite of China-focused AI tools at its packed event on Tuesday.

Google in the past year has launched AI-backed products including a translate app and a drawing game, its first new consumer products in China since its search engine was largely blocked in 2010.

The World Artificial Intelligence Conference, which ends on Wednesday, is hosted by China’s top economic planning agency alongside its cyber and industry ministries. The conference aims to show the country’s growing might as a global AI player.

China’s ambition to be a world leader in AI has created an opening for U.S. firms, which attract the majority of top global AI talents and are keen to tap into China’s vast data.

The presence of global AI research projects is also a boon for China, which aims to become a global technology leader in the next decade.

Liu He, China’s powerful vice premier and the key negotiator in trade talks with the United States, said his country wanted a more collaborative approach to AI technology.

“As members of a global village, I hope countries can show inclusive understanding and respect for each other, deal with the double-sword technologies can bring, and embrace AI challenges together,” he told the forum.

Beijing took an aggressive stance when it laid out its AI roadmap last year, urging companies, the government and military to give China a “competitive edge” over its rivals.

STATE-BACKED AI

Chinese attendees at the forum were careful to cite the guiding role of the state in the country’s AI sector.

“The development of AI is led by government and executed by companies,” a Chinese presenter said in between speeches on Monday by China’s top tech leaders, including Alibaba Holding Ltd chairman Jack Ma, Tencent Holdings Ltd chief Pony Ma and Baidu Inc CEO Robin Li.

While China may have enthusiasm for foreign AI projects, there is little indication that building up local AI operations will open doors for foreign firms in other areas.

China’s leaders still prefer to view the Internet as a sovereign project. Google’s search engine remains blocked, while Amazon had to step back from its cloud business in China.

Censorship and local data rules have also hardened in China over the past two years, creating new hoops for foreign firms to jump through if they want to tap the booming internet sector.

Nevertheless, some speakers paid tribute to foreign AI products, including Xiami Corp chief executive Lei Jun, who hailed Google’s Alpha Go board game program as a major milestone, saying he was a fan of the game himself.

Alibaba’s Ma said innovation needed space to develop and it was not the government’s role to protect business.

“The government needs to do what the government should do, and companies need to do what they should do,” he said.

(Reporting by Cate Cadell; Editing by Adam Jourdan and Darren Schuettler)

Nasdaq surges at open after strong Amazon, Microsoft earnings

(Reuters) – The tech-heavy Nasdaq opened 1 percent higher on Friday after stellar results from Amazon, Microsoft and Intel, while a 3 percent drop in Exxon weighed on the Dow and S&P.

The Dow Jones Industrial Average rose 19.80 points, or 0.08 percent, at the open to 24,342.14. The S&P 500 opened higher by 8.53 points, or 0.32 percent, at 2,675.47. The Nasdaq Composite gained 76.84 points, or 1.08 percent, to 7,195.52 at the opening bell.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)

In reversal, U.S. internet firms back bill to fight online sex trafficking

A computer keyboard is seen in Bucharest April 3, 2012.

By Dustin Volz

WASHINGTON (Reuters) – Major U.S. internet firms on Friday said they would support legislation to make it easier to penalize operators of websites that facilitate online sex trafficking, marking a sharp reversal for Silicon Valley on an issue long considered a top policy priority.

The decision to endorse a measure advancing in the U.S. Senate could clear the way for Congress to pass the first rewrite of a law adopted 21 years ago that is widely considered a bedrock legal shield for the internet industry.

Michael Beckerman, president of the Internet Association, said in a statement it supported a bipartisan proposal advancing in the U.S. Senate making it easier for states and sex-trafficking victims to sue social media networks, advertisers and others that fail to keep exploitative material off their platforms.

“Important changes made to (Stop Enabling Sex Traffickers Act) will grant victims the ability to secure the justice they deserve, allow internet platforms to continue their work combating human trafficking, and protect good actors in the ecosystem,” Beckerman said. His organization represents tech companies including Facebook, Amazon and Alphabet’s Google.

This week, the U.S. Senate Commerce Committee said it would vote next week on the bill authored by Republican Rob Portman and Democrat Richard Blumenthal.

The internet industry has fought such a change in the law for years, but now Washington is stepping up scrutiny on the sector on a range of policy issues after decades of hands-off regulation.

U.S. technology companies had long opposed any legislation seeking to amend Section 230 of the decades-old Communications Decency Act, arguing it is a bedrock legal protection for the internet that could thwart digital innovation and prompt endless litigation.

Bill negotiators agreed to make a handful of technical changes to the draft legislation, which Beckerman said helped earn support of the internet companies.

Those changes include clarity that criminal charges are based on violations of federal human trafficking law and that a standard for liability requires a website “knowingly” assisting of facilitating trafficking.

 

(Reporting by Dustin Volz; Editing by David Gregorio)

 

Apple sees its mobile devices as platform for artificial intelligence

An Apple employee showcases the augmented reality on an iPhone 8 Plus at the Apple Orchard Shop in Singapore September 22, 2017. REUTERS/Edgar Su

By Jess Macy Yu

TAIPEI (Reuters) – Apple Inc  sees its mobile devices as a major platform for artificial intelligence in the future, Chief Operating Officer Jeff Williams said on Monday.

Later this week, Apple is set to begin taking pre-orders for its new smartphone, the iPhone X – which starts at $999 and uses artificial intelligence (AI) features embedded in the company’s latest A11 chips.

The phone promises new facial recognition features such as Face ID that uses a mathematical model of a person’s face to allow the user to sign on to their phones or pay for goods with a steady glance at their phones.

“We think that the frameworks that we’ve got, the ‘neural engines’ we’ve put in the phone, in the watch … we do view that as a huge piece of the future, we believe these frameworks will allow developers to create apps that will do more and more in this space, so we think the phone is a major platform,” Williams said.

He was speaking at top chip manufacturer Taiwan Semiconductor Manufacturing Company’s 30th anniversary celebration in Taipei, which was attended by global tech executives.

Williams said technological innovations, especially involving the cloud and on-device processing, will improve life without sacrificing privacy or security.

“I think we’re at an inflection point, with on-device computing, coupled with the potential of AI, to really change the world,” he said.

He said AI could be used to change the way healthcare is delivered, an industry he sees as “ripe” for change.

Williams said Apple’s integration of artificial intelligence wouldn’t be just limited to mobile phones.

“Some pieces will be done in data centers, some will be on the device, but we are already doing AI in the broader sense of the word, not the ‘machines thinking for themselves’ version of AI,” he said referring to the work of Nvidia Corp, a leader in AI.

Global tech firms such as Facebook, Alphabet Inc, Amazon, and China’s Huawei are spending heavily to develop and offer AI-powered services and products in search of new growth drivers.

Softbank Group Corp, which has significantly invested in artificial intelligence, plans a second Vision Fund that could be about $200 billion in size, the Wall Street Journal reported on Friday.

At Monday’s event, TSMC Chairman Morris Chang described his company’s relationship with Apple as “intense.”

Williams said the relationship started in 2010, the year Apple launched the iPhone 4, with both parties taking on substantial risk.

He credited Chang for TSMC’s “huge” capital investment to ramp up faster than the pace the industry was used to at the time. Apple decided to have 100 percent of its new iPhone and new iPad chips for application processors sourced at TSMC, and TSMC invested $9 billion to bring up its Tainan fab in a record 11 months, he said.

 

(Reporting by Jess Macy Yu, additional reporting by Eric Auchard, Editing by Miyoung Kim and Adrian Croft)

 

Two Major Cyber Attacks disrupt service on major sites

An attendee looks at a monitor at the Parsons booth during the 2016 Black Hat cyber-security conference in Las Vegas, Nevada, U.S

By Jim Finkle and Dustin Volz

(Reuters) – Cyber attacks targeting the internet infrastructure provider Dyn disrupted service on major sites such as Twitter and Spotify on Friday, mainly affecting users on the U.S. East Coast.

It was not immediately clear who was responsible and Gillian Christensen of the U.S. Department of Homeland Security said the agency was “investigating all potential causes.”

Dyn said it had resolved one attack, which disrupted operations for about two hours, but disclosed a second attack a few hours later that was causing further disruptions.

In addition to the social network Twitter and music-streamer Spotify, the discussion site Reddit, hospitality booking service Airbnb and The Verge news site were among the companies whose services were reported to be down.

Amazon.com Inc’s web services division, one of the world’s biggest cloud computing companies, also disclosed an outage that lasted several hours on Friday morning. Amazon could not immediately be reached for comment.

The attacks were the latest in an increasingly menacing string of distributed denial of service, or DDoS, attacks disrupting internet sites by overwhelming servers with web traffic.

The U.S. Department of Homeland Security warned on Oct. 14 that hackers were using a powerful new approach to launch these campaigns – infecting routers, printers, smart TVs and other connected devices with malware that turns them into “bot” armies that can launch DDoS attacks.

“We have begun monitoring and mitigating a DDoS attack against our Dyn Managed DNS infrastructure,” the company said on its website. “Our engineers are continuing to work on mitigating this issue.”

Doug Madory, director of internet analysis at Dyn, told Reuters he was not sure if the outages at Dyn and Amazon were connected.

“We provide service to Amazon but theirs is a complex network so it is hard to be definitive about causality at the moment,” he said.

Dyn is a Manchester, New Hampshire-based provider of services for managing domain name servers (DNS), which act as switchboards connecting internet traffic. Requests to access sites are transmitted through DNS servers that direct them to computers that host websites.

Dyn’s customers include some of the world’s biggest corporations and Internet firms, such as Pfizer, Visa, Netflix and Twitter, SoundCloud and BT.

(Reporting By Jim Finkle in Boston and Dustin Volz in Washington; Additional reporting by Eric Auchard in Frankurt and Malathi Nayak in New York, Jeff Mason in Washington; Editing by Bill Trott)