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Alexander Karp, CEO of Palantir Technologies Inc.
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While some companies such as Tesla are diversifying into bitcoin, data analytics software company Palantir is betting on gold. Palantir bought $50 million in gold bars in August, the company disclosed in its latest earnings statement.

The move reflects a growing company stashing cash in an unconventional asset in response to economic uncertainty spurred by the coronavirus pandemic and governments’ response to it.

The price of an ounce of gold crossed the $2,000 mark for the first time last year as the pandemic worsened and U.S. government stimulus efforts continued. This year investors have more loudly voiced concerns about inflation, and gold is sometimes viewed as a hedge against inflation, although prices are down 7% for the year. Some investors have thought cryptocurrencies might also serve that role.

“During August 2021, the Company purchased $50.7 million in 100-ounce gold bars,” Palantir said in the Aug. 12 earnings statement for its fiscal second quarter. “Such purchase will initially be kept in a secure third-party facility located in the northeastern United States and the Company is able to take physical possession of the gold bars stored at the facility at any time with reasonable notice.”

Palantir did not respond to a request for comment on the investment.

After completing a direct listing and debuting on the New York Stock Exchange in September, Palantir is now debt-free, the company’s finance chief, Dave Glazer, told analysts on a conference call last week. Revenue has accelerated for two consecutive quarters, with 20 new customers joining in the fiscal second quarter.

Palantir is investing to grow, bringing on more than 100 salespeople in the past two quarters, and plans call for hiring to continue at a fast pace, Glazer said.

The company remains unprofitable, as it was as a privately held company. Meanwhile, its supply of cash has been increasing, in part thanks to stock issuance and proceeds from the exercise of stock options.

That has given Palantir an opportunity to invest in its own customers, including early stage companies, which are very different from existing government customers such as the U.S. Department of Health and Human Services. Among the investments are companies that have gone public through mergers with special-purpose acquisition companies, such as AdTheorent, Fast Radius, FinAccel and Tritium, according to the earnings statement.

It’s possible that following the gold investment, Palantir could expand into cryptocurrencies. In May, after Glazer was asked on an analyst call if the company could have bitcoin or other cryptocurrencies on its balance sheet, he said, “The short answer is, yes, we’re thinking about it, and we’ve even discussed internally.”

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Amazon, Best Buy, Google may soon sell home smart devices with ‘hacker-safe’ label

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Amazon, Best Buy, Google may soon sell home smart devices with 'hacker-safe' label

Consumers have become accustomed to all sorts of labels and seals of approval on products in the shopping process, from the Energy Star to sustainability standards. Next up, shoppers should prepare for a hacking-safe seal of approval in the works for home gadgets and appliances coming from the federal government.

Last July, the Biden administration and the Federal Communications Commission proposed the creation of the U.S. Cyber Trust Mark program, a voluntary cybersecurity product-labeling initiative to help consumers choose internet-connected devices that are certified by manufacturers as safe from hackers, scammers and other cyber criminals.

The final details are still to be determined, but as proposed, the program will require participating manufacturers of smart, internet of things (IoT) devices — including doorbell cameras, voice-activated speakers, baby monitors, TVs, kitchen appliances, thermostats and fitness trackers — to meet a series of cybersecurity standards developed by the National Institute of Standards and Technology (NIST). That includes unique passwords, data protection, software patches and updates, and incident detection capabilities.

Not included in the program, as it now stands, are smartphones, personal computers, routers and certain internet-connected medical devices, such as smart thermometers and CPAP machines, which are protected by Federal Drug Administration regulations. Also excluded are motor vehicles and the data stored in them, which are overseen by the National Highway Traffic Safety Administration, and where data privacy concerns have been rising.

The program will rely on public-private collaboration, with the FTC providing oversight and enforcement, and approved third-party label administrators managing activities such as evaluating product applications, authorizing use of the label and consumer education. Compliance testing will be handled by accredited labs.

Packaging for products that meet the criteria will carry a U.S. Cyber Trust Mark shield logo emblazoned with a QR code that consumers can scan on a smartphone to receive detailed, up-to-date security information about that particular device. “Just like the Energy Star logo helps consumers know what devices are energy efficient, the Cyber Trust Mark will help consumers make more informed purchasing decisions about device privacy and security,” said FCC chairwoman Jessica Rosenworcel.

To date, Amazon, Best Buy, Google, LG Electronics U.S.A., Logitech and Samsung Electronics have committed to the program, though none of those companies has yet to use the symbol.

Holiday season labeling is goal, but an unlikely one

In March, the FCC voted to approve the program, aiming to launch it later this year. During a cybersecurity panel discussion in May at Auburn University’s McCrary Institute in Washington, Nicholas Leiserson, the White House’s assistant national cyber director for cyber policy and programs, said, “You should hopefully, by the holiday season, start to see devices that have this [Cyber Trust Mark] on it.”

Despite the administration’s best intentions, however, consumers shouldn’t expect to see products bearing the symbol until early next year, at the soonest. In an email asking about the timeline for the launch, an FCC spokesperson did not provide any specific dates.

“We are now in the process of standing up this comprehensive program as quickly as possible,” the spokesperson said. “It is currently undergoing the standard intergovernmental review process that is required for new rules of this sort. Once that process is complete, we will communicate publicly about next steps.”

In the meantime, manufacturers are also awaiting definitive rules, said David Grossman, vice president of policy and regulatory affairs for the Consumer Technology Association, which represents more than 1,000 tech companies. “Once a manufacturer receives certification for the Trust Mark, they will need additional time to retool their packaging, as well as shipping updated products from the manufacturer to retailers,” he said.

70 million U.S. homes actively using smart devices

While the program’s particulars are being hammered out, it’s worth looking at why consumers need the protection it will provide. In 2024, according to research firm Statista, nearly 70 million homes in the U.S. are actively using smart devices, up more than 10% from last year. That number is expected to reach 100 million homes by 2028. What’s more, the average U.S. household contains around 25 connected devices.

Many of those devices, as well as the Wi-Fi networks and routers that connect them, lack adequate security safeguards. A 2023 study by research firm Park Associates found that nearly 75% of U.S. households with internet service were concerned about the security of their personal data, while 54% reported experiencing a data privacy or security issue in the past 12 months, an increase of 50% over five years.

Staffers from Consumer Reports attended a White House meeting during which the Cyber Trust Mark program was announced. The organization subsequently conducted an American Experiences Survey that included questions about the program and the types of data-protection information consumers would like to have before purchasing a smart device.

About two-thirds of those polled (69%) said that it is very important to have information about who the collected data is shared with or sold to, and 92% said that such information is either very or somewhat important. Three out of four respondents said that it is the responsibility of the manufacturers of those devices to provide privacy and security information to consumers, while only 8% said the government is responsible.

“It is incredibly important to make a consumer-legible standard for IoT devices, because right now it is totally a Wild West,” said Stacey Higginbotham, a cybersecurity expert and writer for Consumer Reports. “Consumers really care about having this kind of information, so that’s why we need the program.”

Higginbotham cited the breadth of the proposed program for requiring more stringent levels of cybersecurity, not only for devices themselves, but also the internet services that connect them and the cloud networks where personal data is stored. She was glad, too, that it includes a guaranteed support timeframe, stipulating the number of years that a product maker will continue to provide software security updates and patches.

A voluntary program is business reality

One criticism is that the program is voluntary for manufacturers. “I would love to see this as a mandatory program,” Higginbotham said, “but the reality in the U.S. is that it will have to be a voluntary program,” she added, referring to the business community’s frequent pushback against government-mandated regulations.

“If you’re going to participate, you’re going to have to meet the requirements the FCC has established. Device manufacturers don’t want the agency dictating things such as the size of the Cyber Trust Mark on packaging or where exactly it has to be displayed,” Grossman said. “You want something that’s easily recognizable to consumers, but you also want to ensure manufacturers have flexibility.”

Grossman said that means companies may shy away from making the commitment if the final proposal is too prescriptive. “If the requirements are too burdensome, I don’t think that companies are going to be as eager to step up to the plate and participate,” he said.

Barry Mainz, CEO of Forescout Technologies, a cybersecurity provider, says he is a big fan of the Cyber Trust Mark. “It’s a good step in the right direction to making it a little bit more complicated to get into these devices,” he said. Nonetheless, he worries about the millions of IoT devices in people’s homes today that are vulnerable to cyberattacks and can’t retroactively get a label. “What responsibility do the companies creating these devices have?” he said. Some of the more popular products, like smart TVs and door locks, could be voluntarily upgraded by their manufacturers to prevent hacking as a goodwill measure, Mainz said, “so that people that couldn’t afford to go out and buy new things could ensure that they were safe.”

Steps to take now to protect your home internet

There are actions consumers can take right now, before the Cyber Trust Mark program kicks in, to harden their cybersecurity. Perhaps the most important component to focus on are the routers that wirelessly interconnect devices. They ship from manufacturers with a default password, which a hacker could change in order to spy on you or access files on a network-attached hard drive. Immediately create your own strong and unique password, not only for the router but also for each of the connected devices, and use two-factor authentication if available. If you have a guest network on the router, set it up with a separate password. Also be sure the router’s software is current, usually by activating the automatic update feature, though you can check the manufacturer’s website for patches that can be downloaded and installed.

Of course, you could take the Luddite approach and simply avoid all of this IoT technology and devices. But for the millions of consumers who embrace the smart home, the Cyber Trust Mark — once it’s in place — should provide a heightened measure of cybersecurity and keep them one step ahead, or at least in the race, with the bad guys.

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Waystar shares slip in Nasdaq debut after digital health company priced IPO in middle of range

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Waystar shares slip in Nasdaq debut after digital health company priced IPO in middle of range

Waystar CEO: We're building a visible, recurring revenue business driving profitable growth

Waystar shares slid about 3% in their Nasdaq debut on Friday, after the health-care payment software vendor priced its IPO in the middle of the expected range.

The stock opened at $21 per share, below the IPO price of $21.50 late Thursday. Waystar said its expected price would be between $20 and $23 per share in May. Shares closed down more than 3% to $20.70 on Friday.

The IPO market has been largely dormant since late 2021 when the extended bull market turned and investors began to worry about a weakening economy. Few technology companies have been willing to try and go public since then, and no digital health companies had a public exit in 2023, according to a report from Rock Health.

But the broader venture-backed tech market may be beginning to thaw. Social media platform Reddit, data center connectivity chip vendor Astera Labs and data software management maker Rubrik have all gone public this year. Health tech company Tempus AI has also issued a preliminary prospectus this year.

Based on Waystar’s initial share price, the company’s market cap is about $3.5 billion. The stock is trading under the ticker symbol “WAY.”

Waystar offers health-care payment and revenue cycle management tools and facilitates more than 5 billion payment transactions annually, according to its prospectus. The company was formed in 2017 after the health-care payment companies Navicure and ZirMed merged.

“We’re excited about the opportunity to be a public company because we think it helps us with awareness, helps us with credibility, helps us improve our capital structure and allows for further investments in areas such as generative AI,” Waystar CEO Matt Hawkins told CNBC’s “The Exchange” Friday.

For the quarter ending March 31, Waystar generated revenue of $224.8 million, up 18% from $191.1 million in the same period last year. Waystar reported a net loss of $15.9 million for the quarter compared with $10.6 million a year ago.

The company said it plans to use the money from the offering to pay off existing debt. JPMorgan Chase, Goldman Sachs and Barclays are leading the offering.

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Microsoft says AI feature that captures screenshots on new PCs will be off by default after backlash

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Microsoft says AI feature that captures screenshots on new PCs will be off by default after backlash

Microsoft CEO Satya Nadella speaks at an event on Microsoft’s campus in Redmond, Washington, on May 20, 2024.

Chona Kasinger | Bloomberg | Getty Images

Microsoft said an artificial intelligence feature on new PCs that captures screenshots and enables search of user activity will be off by default after security researchers determined that attackers could access the underlying data.

The Recall feature was one of the main capabilities Microsoft showed during a press briefing last month for forthcoming Copilot+ PCs with AI computing power onboard.

“If you don’t proactively choose to turn it on, it will be off by default,” Pavan Davuluri, Microsoft’s head of Windows and Surface devices, wrote in a blog post on Friday.

Microsoft has been trying to balance competing interests of late as it moves to incorporate new generative AI tools into its products and to keep up with the competition. While the market is evolving rapidly, user privacy and security are under a microscope. A U.S. government review board recently criticized Microsoft’s handling of China’s breach of U.S. government officials’ email accounts.

Microsoft has already added the Copilot conversational chatbot into Windows in a way that resembles OpenAI’s popular ChatGPT. Both ChatGPT and Copilot rely on servers in the cloud to perform necessary computations and then send back responses to PCs. Recall is different in that it keeps data on users’ computers and doesn’t need to access supplemental computing power over the internet.

Satya Nadella, Microsoft’s CEO, directed employees to put security first and announced changes to its security practices following the U.S. government report.

After Microsoft announced Recall, which can search through a log of previous actions on PCs, industry experts began questioning the potential for hackers to retrieve users’ information.

Security practitioners released software called Total Recall that displays data Recall collects.

“Windows Recall stores everything locally in an unencrypted SQLite database, and the screenshots are simply saved in a folder on your PC,” they wrote in a description of Total Recall on GitHub. They expressed concern about attackers developing tools that can look for usernames and passwords contained in Recall screenshots.

Microsoft is adding security protections to Recall in addition to requiring people to manually turn it on once Copilot+ PCs become available on June 18. The search index database will be encrypted, Microsoft said.

“Windows Hello enrollment is required to enable Recall,” Davuluri wrote. “In addition, proof of presence is also required to view your timeline and search in Recall.”

With Windows Hello, users prove their identity by entering a PIN number, showing their face to the PC camera or providing a fingerprint.

“I think overall having a choice around opting in on home systems will save a lot of people security problems further down the line,” Kevin Beaumont, a former Microsoft cybersecurity analyst who criticized the original implementation of Recall, said in a Friday post on X. “It never should have been enabled by default.”

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