The tech startup "purported to make smart home and business products," writes America's Justice Department — products that were "meant to stop package theft, prevent weather damage to packages, and make it easier for emergency responders and delivery services to find homes and businesses." Royce Newcomb "developed prototypes of his products and received local and national media attention for them. For example, Time Magazine included his eLiT Address Box & Security System, which used mobile networks to pinpoint home and business locations, on its Best Inventions of 2021 list."

But then he told investors he'd also received a grant by the National Science Foundation — one of "several false representations to his investors to deceive and cheat them out of their money... Newcomb used the money to pay for gambling, a Mercedes and Jaguar, and a mansion." He also used the money to pay for refunds to other investors who wanted out, and to pay for new, unrelated projects without the investors' authorization. During this period, Newcomb also received a fraudulent COVID-19 loan for more than $70,000 from the Small Business Administration and fraudulent loans for more than $190,000 from private lenders. He lied about Strategic Innovations having hundreds of thousands and even millions in revenue to get these loans.

Newcomb was previously convicted federally in 2011 for running a real estate fraud scheme in Sacramento. He was sentenced to more than five years in prison for that offense, and he was on federal supervised release for that offense when he committed the offenses charged in this case... Newcomb faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for the money laundering charge...

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice.
SFGate writes that "Despite receiving significant funding, his startup, Strategic Innovations, never made a dime or released any products to market, according to legal documents." The owner of a California tech startup has pleaded guilty to stealing over $4 million from investors, private lenders and the U.S. government in order to live a luxurious lifestyle, the United States Attorney's Office announced Monday... When investors asked about product delays and when they'd be paid back, Newcomb made excuses and provided conflicting info, telling them that there were supply chain issues or software problems, according to the indictment. In reality, federal prosecutors said, he was using the money to travel and continue to make these lavish personal expenses.

Thursday the White House "moved to halt a $5 billion initiative to build electric vehicle charging stations," reports Politico, "by instructing states not to spend federal funds previously allocated to them..." NPR described the move as "putting in limbo billions of dollars allocated to states with current and future projects..."

Politico notes the move "appears to upend years of precedent in which federal promises of funds for highway projects had given states an all-but-guaranteed assurance that they were free to spend them. It also raises legal questions... Funding experts had told POLITICO last year that decades of legal precedent would largely insulate the charging money... Andrew Rogers [deputy administrator of the Federal Highway Administration, or FHWA, in the Biden administration] said in a text message that the new letter "appears to ignore both the law and multiple restraining orders that have been issued by federal courts." Rogers, who is now a senior vice president at Boundary Stone Partners, said the move appears to be "in direct violation" of the Impoundment Control Act of 1974, a Watergate-era law that prohibits presidents from unilaterally canceling congressionally approved spending. Trump has contended that the law is unconstitutional.
Politico also got a quote from the chief analyst at analytics firm Paren, who predicts lawsuits from affected states and that the final impact of the move will be "just causing havoc and slowing things down for awhile." [A letter to state transportation directors from the Federal Highway Administration] clarifies that states will be able to receive reimbursements for "existing obligations" to design and build stations "in order to not disrupt current financial commitments." According to the letter, FHWA plans to publish new draft guidance on the NEVI program in the spring, followed by a comment period, before issuing new final guidance. Only then will states be able to resubmit their annual implementation plans for all fiscal years of the program.
"But that doesn't mean that the program is going to be sunset or the funds are not going to be made available again to the states," Nick Nigro, the founder of Atlas Public Policy consultancy told NPR: Several experts tell NPR that as a result of its overwhelming bipartisan support at the time, attempts to overturn it within the executive branch are likely to be challenged in court. Nigro believes the funding will resume eventually...

So far, 56 stations [with multiple chargers] are up and running as a result of the program, while more than 900 sites in total have been "awarded" to date, according to Loren McDonald, chief analyst at Paren, another research analytics firm. McDonald said several hundred of the awarded sites are currently under construction and expected to open this year. He does not believe the FHWA has the authority to pause or rescind any aspect of the NEVI program... "I assume lawsuits from states will start soon, and this will go to court and Congress," McDonald said in a statement.
The move has "confounded states, which had been allocated billions of dollars by Congress for the program," the New York Times reported Friday. "[S]ome state officials said that as a result of the memo from the Trump administration, they had stopped work on the charging stations. Others said they intended to keep going."

The Washington Post reports that a Texas Department of Transportation official "said it would continue to deploy federal funds for EV chargers until it receives further guidance," and that Ryan Gallentine, managing director at the national business association Advanced Energy United, said that states "are under no obligation to stop these projects based solely on this announcement." Politico adds: Also on Thursday, FHWA took down several internet pages providing information on NEVI and its sister program, the $2.5 billion Charging and Fueling Infrastructure grant program... Amid the confusion, at least six states — Alabama, Oklahoma, Missouri, Rhode Island, Ohio and Nebraska — have put their NEVI programs on hold, according to McDonald. Rhode Island and Ohio had been considered leading states in implementing the program.

Friday on a Washington Post podcast, their columnists discussed the hybrid/remote work trend, asking why it "seems to be reversing". Molly Roberts: Why have some companies decided finally that having offices full of employees is better for them?

Heather Long: It's a loaded question, but I would say, unfortunately, 2025 is the year of operational efficiency, and that's corporate speak for save money at all costs. How do you save money? The easiest way is to get people to quit. What are these return to office mandates, particularly the five day a week in office mandates? We have a lot of data on this now, and it shows people will quit and you don't even have to pay them severance to do it.

Molly Roberts: It's not about productivity for the people who are in the office, then, you think. It's more about just cutting down on the size of the workforce generally.

Heather Long: I do think so. There has been a decent amount of research so far on fully remote, hybrid and fully in office. It's a mixed bag for fully remote. That's why I think if you look at the Fortune 500, only about 16 companies are fully remote, but a lot of them are hybrid. The reason that so much companies are hybrid is because that's the sweet spot. There is no productivity difference between the hybrid schedule and fully in the office five days a week. But what you do see a big difference is employee satisfaction and happiness and employee retention....

I think if what we're talking about is places that have been able to do work from home successfully for the past several years, why are they suddenly in 2025, saying the whole world has changed and we need to come back to the office five days a week? You should definitely be skeptical.
"Who are the first people to leave in these scenarios? It's star employees who know they can get a job elsewhere," Long says (adding later that "There's also quantifiable data that show that, particularly parents, the childcare issues are real.") Long also points out that most of Nvidia's workforce is fully remote — and that housing prices have spiked in some areas where employers are now demanding people return to the office.

But employers also know hiring rates are now low, argues Long, so they're pushing their advantage — possibly out of some misplaced nostalgia. "[T]here's a huge, huge perception difference between what managers, particularly senior leaders in an organization, how effective they think [people were] in offices versus what the rank and file people think. Rank and file people tend to prefer hybrid because they don't want their time wasted."

Their discussion also notes a recent Harvard Business School survey that found that 40% of people would trade 5% or more of their salaries to work from home....

After a $523 million charge on its CST-100 Starliner program in 2024, Boeing's total losses on the commercial crew vehicle now exceed $2 billion -- and there's still no clear timeline for its next flight. SpaceNews reports: In the company's 10-K annual filing with the U.S. Securities and Exchange Commission Feb. 3, Boeing said it took $523 million in charges on Starliner in 2024. The company blamed the losses on "schedule delays and higher testing and certification costs as well as higher costs for post certification missions."

The company had reported a $125 million charge in the second quarter and a $250 million charge in the third quarter. The company warned Jan. 23 it would take an additional loss in the fourth quarter but did not disclose a figure when it released its financial results five days later. The annual loss implies a $148 million loss in the fourth quarter.

The $523 million in charges is the most Boeing has recorded in a single year on Starliner, exceeding $489 million it reported in 2019. The company's cumulative charges on Starliner are now just over $2 billion. "Risk remains that we may record additional losses in future periods," the company stated in the 10-K filing.

An anonymous reader quotes a report from CyberScoop: Ransomware payments saw a dramatic 35% drop last year compared to 2023, even as the overall frequency of ransomware attacks increased, according to a new report released by blockchain analysis firm Chainalysis. The considerable decline in extortion payments is somewhat surprising, given that other cybersecurity firms have claimed that 2024 saw the most ransomware activity to date. Chainalysis itself warned in its mid-year report that 2024's activity was on pace to reach new heights, but attacks in the second half of the year tailed off. The total amount in payments that Chainalysis tracked in 2024 was $812.55 million, down from 2023's mark of $1.25 billion.

The disruption of major ransomware groups, such as LockBit and ALPHV/BlackCat, were key to the reduction in ransomware payments. Operations spearheaded by agencies like the United Kingdom's National Crime Agency (NCA) and the Federal Bureau of Investigation (FBI) caused significant declines in LockBit activity, while ALPHV/BlackCat essentially rug-pulled its affiliates and disappeared after its attack on Change Healthcare. [...] Additionally, [Chainalysis] says more organizations have become stronger against attacks, with many choosing not to pay a ransom and instead using better cybersecurity practices and backups to recover from these incidents. [...] Chainalysis also says ransomware operators are letting funds sit in wallets, refraining from moving any money out of fear they are being watched by law enforcement.

You can read the full report here.

Google aims to release commercial quantum computing applications within five years, challenging Nvidia's prediction of a 20-year timeline. "We're optimistic that within five years we'll see real-world applications that are possible only on quantum computers," founder and lead of Google Quantum AI Hartmut Neven said in a statement. Reuters reports: Real-world applications Google has discussed are related to materials science - applications such as building superior batteries for electric cars - creating new drugs and potentially new energy alternatives. [...] Google has been working on its quantum computing program since 2012 and has designed and built several quantum chips. By using quantum processors, Google said it had managed to solve a computing problem in minutes that would take a classical computer more time than the history of the universe.

Google's quantum computing scientists announced another step on the path to real world applications within five years on Wednesday. In a paper published in the scientific journal Nature, the scientists said they had discovered a new approach to quantum simulation, which is a step on the path to achieving Google's objective.

Microsoft will charge commercial customers $61 per device in the first year to continue receiving Windows 10 security updates after support ends, The Register wrote in a PSA note Wednesday, citing text, with costs doubling each subsequent year for up to three years.

Organizations can't skip initial years to save money, as the updates are cumulative. Some users may avoid fees if they connect Windows 10 endpoints to Windows 365 Cloud PCs. The program also covers Windows 10 virtual machines running on Windows 365 or Azure Virtual Desktop for three years with an active Windows 365 subscription.

Since November, British telecom O2 has deployed an AI chatbot masquerading as a 78-year-old grandmother to waste scammers' time. The bot, named Daisy, engages fraudsters by discussing knitting patterns, recipes, and asking about tea preferences while feigning computer illiteracy. The Guardian has an update this week: In tests over several weeks, Daisy has kept individual scammers occupied for up to 40 minutes, with one case showing her being passed between four different callers. An excerpt from the story: "When a third scammer tries to get her to download the Google Play Store, she replies: 'Dear, did you say pastry? I'm not really on the right page.' She then complains that her screen has gone blank, saying it has 'gone black like the night sky'."

An anonymous reader quotes a report from The Guardian: The pace of global heating has been significantly underestimated, according to renowned climate scientist Prof James Hansen, who said the international 2C target is "dead." A new analysis by Hansen and colleagues concludes that both the impact of recent cuts in sun-blocking shipping pollution, which has raised temperatures, and the sensitivity of the climate to increasing fossil fuels emissions are greater than thought. The group's results are at the high end of estimates from mainstream climate science but cannot be ruled out, independent experts said. If correct, they mean even worse extreme weather will come sooner and there is a greater risk of passing global tipping points, such as the collapse of the critical Atlantic ocean currents.

Hansen, at Columbia University in the US, sounded the alarm to the general public about climate breakdown in testimony he gave to a UN congressional committee in 1988. "The Intergovernmental Panel on Climate Change (IPPC) defined a scenario which gives a 50% chance to keep warming under 2C -- that scenario is now impossible," he said. "The 2C target is dead, because the global energy use is rising, and it will continue to rise." The new analysis said global heating is likely to reach 2C by 2045, unless solar geoengineering is deployed. [...] In the new study, published in the journal Environment: Science and Policy for Sustainable Development, Hansen's team said: "Failure to be realistic in climate assessment and failure to call out the fecklessness of current policies to stem global warming is not helpful to young people."

[...] Hansen said the point of no return could be avoided, based on the growing conviction of young people that they should follow the science. He called for a carbon fee and dividend policy, where all fossil fuels are taxed and the revenue returned to the public. "The basic problem is that the waste products of fossil fuels are still dumped in the air free of charge," he said. He also backed the rapid development of nuclear power. Hansen also supported research on cooling the Earth using controversial geoengineering techniques to block sunlight, which he prefers to call "purposeful global cooling." He said: "We do not recommend implementing climate interventions, but we suggest that young people not be prohibited from having knowledge of the potential and limitations of purposeful global cooling in their toolbox." Political change is needed to achieve all these measures, Hansen said: "Special interests have assumed far too much power in our political systems. In democratic countries the power should be with the voter, not with the people who have the money. That requires fixing some of our democracies, including the US."

An anonymous reader quotes a report from Ars Technica: US Senator Ted Cruz (R-Texas) has been demanding an overhaul of a $42.45 billion broadband deployment program, and now his telecom policy director has been chosen to lead the federal agency in charge of the grant money. "Congratulations to my Telecom Policy Director, Arielle Roth, for being nominated to lead NTIA," Cruz wrote last night, referring to President Trump's pick to lead the National Telecommunications and Information Administration. Roth's nomination is pending Senate approval. Roth works for the Senate Commerce Committee, which is chaired by Cruz. "Arielle led my legislative and oversight efforts on communications and broadband policy with integrity, creativity, and dedication," Cruz wrote.

Shortly after Trump's election win, Cruz called for an overhaul of the Broadband Equity, Access, and Deployment (BEAD) program, which was created by Congress in November 2021 and is being implemented by the NTIA. Biden-era leaders of the NTIA developed rules for the program and approved initial funding plans submitted by every state and territory, but a major change in approach could delay the distribution of funds. Cruz previously accused the NTIA of "technology bias" because the agency prioritized fiber over other types of technology. He said Congress would review BEAD for "imposition of statutorily-prohibited rate regulation; unionized workforce and DEI labor requirements; climate change assessments; excessive per-location costs; and other central planning mandates."

Roth criticized the BEAD implementation at a Federalist Society event in June 2024. "Instead of prioritizing connecting all Americans who are currently unserved to broadband, the NTIA has been preoccupied with attaching all kinds of extralegal requirements on BEAD and, to be honest, a woke social agenda, loading up all kinds of burdens that deter participation in the program and drive up costs," she said. Municipal broadband networks and fiber networks in general could get less funding under the new plans. Roth is "expected to change the funding conditions that currently include priority access for government-owned networks" and "could revisit decisions like the current preference for fiber," Bloomberg reported, citing people familiar with the matter. Congress defined priority broadband projects under BEAD as those that "ensure that the network built by the project can easily scale speeds over time to meet the evolving connectivity needs of households and businesses; and support the deployment of 5G, successor wireless technologies, and other advanced services."

The Biden NTIA determined that only end-to-end fiber-optic architecture meet these criteria. "End-to-end fiber networks can be updated by replacing equipment attached to the ends of the fiber-optic facilities, allowing for quick and relatively inexpensive network scaling as compared to other technologies. Moreover, new fiber deployments will facilitate the deployment and growth of 5G and other advanced wireless services, which rely extensively on fiber for essential backhaul," the Biden NTIA said (PDF).

Salesforce is cutting jobs as its latest fiscal year gets underway, Bloomberg reported Monday, citing a person familiar with the matter, even as the company simultaneously hires workers to sell new artificial intelligence products. From the report: More than 1,000 roles will be affected, according to the person, who asked not to be identified because the information is private. Displaced workers will be able to apply for other jobs internally, the person added. Salesforce had nearly 73,000 workers as of January 2024, when that fiscal year ended.

Senator Josh Hawley has introduced a bill that would criminalize the import, export, and collaboration on AI technology with China. What this means is that "someone who knowingly downloads a Chinese developed AI model like the now immensely popular DeepSeek could face up to 20 years in jail, a million dollar fine, or both, should such a law pass," reports 404 Media. From the report: Hawley introduced the legislation, titled the Decoupling America's Artificial Intelligence Capabilities from China Act, on Wednesday of last year. "Every dollar and gig of data that flows into Chinese AI are dollars and data that will ultimately be used against the United States," Senator Hawley said in a statement. "America cannot afford to empower our greatest adversary at the expense of our own strength. Ensuring American economic superiority means cutting China off from American ingenuity and halting the subsidization of CCP innovation."

Hawley's statement explicitly says that he introduced the legislation because of the release of DeepSeek, an advanced AI model that's competitive with its American counterparts, and which its developers claimed was made for a fraction of the cost and without access to as many and as advanced of chips, though these claims are unverified. Hawley's statement called DeepSeek "a data-harvesting, low-cost AI model that sparked international concern and sent American technology stocks plummeting." Hawley's statement says the goal of the bill is to "prohibit the import from or export to China of artificial intelligence technology, "prohibit American companies from conducting AI research in China or in cooperation with Chinese companies," and "Prohibit U.S. companies from investing money in Chinese AI development."

The Department of Homeland Security's Inspector General has launched an audit of the TSA's use of facial recognition technology at U.S. airports following concerns from lawmakers and privacy advocates. The Register reports: Homeland Security Inspector General Joseph Cuffari notified a bipartisan group of US Senators who had asked for such an investigation last year that his office has announced an audit of TSA facial recognition technology in a letter [PDF] sent to the group Friday. "We have reviewed the concerns raised in your letter as part of our work planning process," said Cuffari, a Trump appointee who survived the recent purge of several Inspectors General. "[The audit] will determine the extent to which TSA's facial recognition and identification technologies enhance security screening to identify persons of interest and authenticate flight traveler information while protecting passenger privacy," Cuffari said.

The letter from the Homeland Security OIG was addressed to Senator Jeff Merkley (D-OR), who co-led the group of 12 Senators who asked for an inspection of TSA facial recognition in November last year. "Americans don't want a national surveillance state, but right now, more Americans than ever before are having their faces scanned at the airport without being able to exercise their right to opt-out," Merkley said in a statement accompanying Cuffari's letter. "I have long sounded the alarm about the TSA's expanding use of facial recognition ... I'll keep pushing for strong Congressional oversight."

[...] While Cuffari's office was light on details of what would be included in the audit, the November letter from the Senators was explicit in its list of requests. They asked for the systems to be evaluated via red team testing, with a specific investigation into effectiveness - whether it reduced screening delays, stopped known terrorists, led to workforce cuts, or amounted to little more than security theater with errors.

U.S. President Donald Trump signed an executive order on Monday ordering the U.S. Treasury and Commerce Departments to create a sovereign wealth fund and said it may purchase TikTok. From a report: "We're going to stand this thing up within the next 12 months. We're going to monetize the asset side of the U.S. balance sheet for the American people," Treasury Secretary Scott Bessent told reporters. "There'll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people."

Trump had previously floated such a government investment vehicle as a presidential candidate, saying it could fund "great national endeavors" like infrastructure projects such as highways and airports, manufacturing, and medical research. Details on how exactly the fund would operate and be financed were not immediately available, but Trump previously said it could be funded by "tariffs and other intelligent things." Typically such funds rely on a country's budget surplus to make investments, but the U.S. operates at a deficit.

On January 24th Brooklyn blogger Jeffrey Emanuel made the case for shorting NVIDIA, remembers MarketWatch, "due to a number of shifting tides in the AI world, including the emergence of a China-based company called DeepSeek."

He published his 12,000-word post "on his personal blog and then shared it with the Value Investors Club website and across Reddit, X and other platforms." The next day he saw 35 people read his post. "But then the post started to go viral..." Well-known venture capitalist Chamath Palihapitiya shared Emanuel's post on Nvidia's short case with his 1.8 million X followers. Successful early stage investor Naval Ravikant shared the post with his 2.6 million followers... Morgan Brown, a vice president of product and growth at Dropbox, pointed to it in a thread that was viewed over 13 million times. Emanuel's own X post got nearly half a million views. He also quickly gained about 13,000 followers on the platform, going from about 2,000 to more than 15,000 followers...

[Emanuel] pointed to the fact that so many people in San Jose were reading his blog post. He theorized that many of them were Nvidia employees with thousands — or even millions — of dollars worth of Nvidia stock tied up in employee stock options. With that much money in a single asset, Emanuel speculated that many were already debating whether to hold the stock or sell it to lock in profits. He believes his blog post helped convince some of them to sell. "A lot of the sell pressure you saw on Monday morning wasn't necessarily what you might think. I believe a fair amount of that was from shares that had never been active because they had been sitting in workplace.schwab.com accounts..."
Emanuel stresses he's "the most bullish on AI," with MarketWatch emphasizing that "while the points Emanuel laid out in his blog post might be bearish for Nvidia, he still thinks they paint a positive future for AI." Nevertheless, Monday NVIDIA's market capitalization dropped $600 billion, which MarketWatch calls "the largest single-day market-cap drop to date for any company." What countless Wall Street firms and investment analysts had seemingly missed was being pointed out by some guy in his apartment.... Matt Levine, the prominent Bloomberg News financial columnist, noted the online chatter that claimed Emanuel's post "was an important catalyst" for the stock-market selloff and said it was a "candidate for the most impactful short research report ever." Emanuel spent the rest of the week booked solid as hedge funds paid him $1,000 per hour to speak on the phone and give his take on Nvidia and AI...

Emanuel wrote that the industry may be running low on quality data to train that AI — that is, a potential "data wall" is looming that could slow down AI scaling and reduce some of that need for training resources... Some of these companies, like Alphabet, have also been investing in building out their own semiconductor chips. For a while, Nvidia's hardware has been the best for training AI, but that might not be the case forever as more companies, such as Cerebras, build better hardware. And other GPU makers like AMD are updating their drivers software to be more competitive with Nvidia... Add all these things together — unsustainable spending and data-center building, less training data to work with, better competing hardware and more efficient AI — and you get a future where it's harder to imagine Nvidia's customers spending as much as they currently are on Nvidia hardware... "If you know that a company will only earn supersized returns for a couple years, you don't apply a multiple. You certainly don't put a 30-times multiple," Emanuel told MarketWatch.
The article notes that DeepSeek "is open-source and has been publishing technical papers out in the open for the past few months... The $5.6 million training-cost statistic that many investors cited for sparking the DeepSeek market panic was actually revealed in the V3 technical paper published on Dec. 26."

An anonymous reader shares a report: At first blush, stock trading this week is hardly a paragon of the market-efficiency theory, an oft-romanticized idea in Economics 101. After all, big equity gauges plunged on Monday, spurred by fears of an AI model released a week earlier, before swiftly rebounding. A fresh academic paper suggests the rise of passive investing may be fueling these kind of fragile market moves.

According to a study to be published in the prestigious American Economic Review, evidence is building that active managers are slow to scoop up stocks en masse when prices move away from their intrinsic worth. Thanks to this lethargic trading behavior and the relentless boom in benchmark-tracking index funds, the impact of each trade on prices gets amplified, explaining how sell orders, like on Monday perhaps, can induce broader equity gyrations. As a result, the financial landscape is proving less dynamic and more volatile in the era of Big Passive, according to authors at the UCLA Anderson School of Management, the Stockholm School of Economics and the University of Minnesota Carlson School of Management.

A proposed class-action lawsuit accuses Amazon of secretly tracking consumers' movements through their cellphones via its Amazon Ads SDK embedded in third-party apps, allegedly collecting sensitive geolocation data without consent. The complaint, filed by a California resident in a San Francisco federal court, claims Amazon violated state laws on unauthorized computer access in the process. Reuters reports: This allegedly enabled Amazon to collect an enormous amount of timestamped geolocation data about where consumers live, work, shop and visit, revealing sensitive information such as religious affiliations, sexual orientations and health concerns. "Amazon has effectively fingerprinted consumers and has correlated a vast amount of personal information about them entirely without consumers' knowledge and consent," the complaint said.

The complaint was filed by Felix Kolotinsky of San Mateo, California, who said Amazon collected his personal information through the "Speedtest by Ookla" app on his phone. He said Amazon's conduct violated California's penal law and a state law against unauthorized computer access, and seeks unspecified damages for millions of Californians.

Longtime Slashdot reader nunya_bizns shares a report from Reuters: The U.S. Department of Justice has sued to block Hewlett Packard Enterprise's $14 billion deal to acquire networking gear maker Juniper Networks, arguing that it would stifle competition, according to a complaint filed on Thursday. The DOJ argued that the acquisition would eliminate competition and would lead to only two companies -- Cisco Systems and HPE -- controlling more than 70% of the U.S. market for networking equipment. More than a year ago, the server maker said that it would buy Juniper Networks for $14 billion in an all-cash deal, as it looks to spruce up its artificial intelligence offerings.

"Juniper has also introduced innovative tools that have materially decreased the cost of operating a wireless network for many customers. This competitive pressure has forced HPE to discount its offerings and invest in its own innovation," the DOJ said in its complaint. Stiff competition from Juniper forced HPE to sell its products at a discount and spend to introduce new features under the "Beat Mist" campaign, named after the networking gear company's rival product, the DOJ wrote. "Having failed to beat Mist on the merits, HPE changed tactics and in January 2024 opted to try to buy Juniper instead," the agency added.

Virgin Money's AI-powered chatbot has reprimanded a customer who used the word "virgin," underlining the pitfalls of rolling out external AI tools. From a report: In a post last week on social media site LinkedIn, David Birch, a fintech commentator and Virgin Money customer, shared a picture of his online conversation with the bank in which he asked: "I have two ISAs with Virgin Money, how do I merge them?" The bank's customer service tool responded: "Please don't use words like that. I won't be able to continue our chat if you use this language," suggesting that it deemed the word "virgin" inappropriate.

West Sussex County Council is using up to $31 million from the sale of capital assets to fund an Oracle-based transformation project, originally budgeted at $3.2 million but now expected to cost nearly $50 million due to delays and cost overruns. The project, intended to replace a 20-year-old SAP system with a SaaS-based HR and finance system, has faced multiple setbacks, renegotiated contracts, and a new systems integrator, with completion now pushed to December 2025. The Register reports: West Sussex County Council is taking advantage of the so-called "flexible use of capital receipts scheme" introduced in 2016 by the UK government to allow councils to use money from the sale of assets such as land, offices, and housing to fund projects that result in ongoing revenue savings. An example of the asset disposals that might contribute to the project -- set to see the council move off a 20-year-old SAP system -- comes from the sale of a former fire station in Horley, advertised for $3.1 million.

Meanwhile, the delays to the project, which began in November 2019, forced the council to renegotiate its terms with Oracle, at a cost of $3 million. The council had expected the new SaaS-based HR and finance system to go live in 2021, and signed a five-year license agreement until June 2025. The plans to go live were put back to 2023, and in the spring of 2024 delayed again until December 2025. According to council documents published this week [PDF], it has "approved the variation of the contract with Oracle Corporation UK Limited" to cover the period from June 2025 to June 2028 and an option to extend again to the period June 2028 to 2030. "The total value of the proposed variation is $2.96 million if the full term of the extension periods are taken," the council said.