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Seventh grade Alabama teacher Sarah Wildes relies on a tool called Checkology to teach her students how to spot real news and misinformation.
Courtesy of Sarah Wildes

When Sarah Wildes, a seventh grade teacher in Alabama, was asked by a student about the mass confusion surrounding the results of the 2020 U.S. presidential election, she knew she had a big job in front of her. 

“I have to tread lightly, but I pointed out that we do know,” said Wildes, a science and technology teacher at Sparkman Middle School in the small town of Toney. “There are facts. There have been committees who reviewed the election. The numbers show us a truth, but the social media bubbles confuse us about that truth.”

Wildes and teachers across the country face a vexing and evolving challenge as the new school year begins and students return to the classroom following a roughly 18-month hiatus from normal in-person learning. Since the last time full classrooms congregated, a whole industry of misinformation has exploded online, spreading conspiracy theories on everything from the alleged steal of the presidential election, which Joe Biden won, to the prevalence of microchips in Covid-19 vaccines.

It’s bad enough that kids are exposed to dangerous untruths across their favorite social media apps like Facebook, YouTube and TikTok. An equally large problem is that, while stuck at home during the pandemic, many students had their days of virtual schooling interrupted by screaming parents, who themselves had fallen deep into the internet’s darkest rabbit holes.

Some 15 percent of Americans believe QAnon conspiracy theories, according to a May report from non-profit groups Public Religion Research Institute and Interfaith Youth Core. QAnon believers were largely responsible for spreading “stop the steal” content on social media, backing the lie that former president Donald Trump won the election.

Meanwhile, 22% of Americans self-identify as anti-vaxxers, according to an academic study published in May, even as scientists and public health officials agree on the extreme efficacy and importance of Covid-19 vaccines.

For kids who have yet to fully develop critical thinking skills, basic truths are being distorted by the combination of misinformation on social media and a growing population of duped and radicalized parents.

“They were at home consuming this information without really being able to bust out of their own bubble having been in quarantine,” Wildes said. “They were starved for guidance on how to navigate all the things that they were seeing.”

In addition to dealing with the standard curriculum and trying to make up for lost classroom time, Wildes is taking on the responsibility of helping students filter out misinformation and find reliable news outlets. She’s leaning on the News Literacy Project (NLP), a non-profit in Washington, D.C., that last year developed Checkology, an online tool for educators to help students spot and dispel misinformation.

Checkology teaches students about the various types of misinformation they may encounter, the role the press plays in democracy, understanding bias in the news and recognizing how people fall into conspiracies. Since its launch in May 2016, Checkology has registered more than 1.3 million students and nearly 36,300 teachers. 

“The pandemic, the election, social justice issues — people are looking for information, and educators need support to navigate that disinformation out there,” said Shaelynn Farnsworth, NLP’s director of educator network expansion.

Finding a Reddit community

Other online communities are giving the children of conspiracy theorists ways to connect and share their experiences. And also to detox.

Mobius, a 17-year-old who lives on the West Coast, said his mom is an anti-vaxxer who has started down the path of QAnon. Mobius, who asked us not to use his real name to preserve his family relationships, said his mom talks about the coronavirus as biological warfare and thinks the government is trying to profit from vaccines. He said 90% of her information comes from Facebook or TikTok.

In July, most of Mobius’s family was infected with Covid-19 after his mother contracted the virus and didn’t enter quarantine. She even traveled by plane while she was sick, said Mobius, adding that he was the only one in the family to get vaccinated and to avoid infection.

He said his mom wouldn’t let his siblings get the vaccine and that he missed several childhood immunizations growing up.

Mobius posted about his experience in QAnonCasualties, a Reddit group that says it offers “support, resources and a place to vent” for people who have friends or loved ones “taken in by QAnon.” The group was created in July 2019 and has 186,000 members. It’s flooded with stories that resemble Mobius’ experience.

A woman wearing a pin during an anti-mandatory coronavirus disease (COVID-19) vaccine protest held outside New York City Hall in New York, August 16, 2021.
Jeenah Moon | Reuters

One user post last month was from a university student recounting the anxiety she felt after her dad showed her a video that claimed Covid vaccines would make her infertile. A more recent post came from a 16-year-old girl, who claims she recently “escaped” her abusive QAnon parents and doesn’t know whether to get the Covid vaccination.

“I don’t know what’s real or not anymore,” she wrote on the Reddit board. “I’m terrified and confused. My parents told me I’d get blood clots, I’d die, be dead within five years, be sterile, microchipped, tracked by the government, controlled by the government etc.” 

QAnon is a far-right conspiracy theory movement that emerged after the 2016 election. Though the messaging is disjointed, members often claim the world is controlled by a cabal of Satanic and cannibalistic elites who conspired against former President Trump.

Mobius, who just entered college and needed the vaccination to attend, said he began to question his family’s views around the time Trump entered office. He got more proactive in seeking the facts, turning to news sources rather than listening to his mom. He landed on the Associated Press and BBC as his most trusted outlets.

Still, Mobius said he tries to avoid talking about anything remotely political with his mom’s side of the family. He said his mom has gotten better about spouting conspiracies since getting sick, though her beliefs haven’t changed.

On QAnonCasualties, divorcees mourn the loss of decades-long relationships, workers talk about leaving their jobs because of a supervisor’s anti-vaccine rants and teens and young adults desperately vent about their parents.

Afraid of ‘vaccine toxicity’

Another member of the Reddit group, who asked to be called Vulture, posted on the board in early August, looking for support and advice on dealing with her mom. 

Vulture, who’s 18 and was only comfortable going by a pseudonym, described her mom as an anti-vaxxer who began diving into the QAnon conspiracy in early 2020, at the start of the pandemic.

She said her mom believes 5G cell phone towers are harmful (one QAnon theory says that 5G causes the coronavirus), and she doesn’t allow her children to have WiFi on at night because she’s concerned about radiation. Vulture said her mom gets her information from Facebook, YouTube, Telegram and even in-person groups. 

Vulture’s parents divorced and her mom is now married to another woman. Her mom’s wife got vaccinated earlier this year, creating a riff in the relationship because Vulture’s mom was afraid she had “vaccine toxicity” and told her wife she no longer loved her unconditionally. 

Vulture said her mom has also threatened to kick her and her younger sibling out of the house if they get vaccinated, a threat that weighs heavily on her, especially as she prepares for her freshman year in college.

Jake A, 33, aka Yellowstone Wolf, from Phoenix, wrapped in a QAnon flag, addresses supporters of US President Donald Trump as they protest outside the Maricopa County Election Department as counting continues after the US presidential election in Phoenix, Arizona, on November 5, 2020.
Olivier Touron | AFP | Getty Images

While teenagers like Mobius and Vulture are finding like-minded people online, groups such as Polarization and Extremism Research Innovation Lab (PERIL) and the Southern Poverty Law Center (SPLC) are trying to protect kids from falling victim to hoaxes and disinformation.

Last year PERIL and SPLC published “A Parents & Caregivers Guide to Online Youth Radicalization,” to help adults deal with teenagers who are at risk of exposure to extremism and conspiracy theories.

“Radicalization is a problem for our entire society, from the innocent people it victimizes to the family bonds it breaks apart,” the guide says. It includes sections on how to recognize warning signs, understanding what drives people toward extremism and how caregivers can engage with at-risk youth.

PERIL and the SPLC also created supplements to the guide for educators, counselors and coaches and mentors.

Seventh grade Alabama teacher Sarah Wildes relies on a tool called Checkology to teach her students how to spot real news and misinformation.
Courtesy of Sarah Wildes

Wildes, the Alabama school teacher, sees a bigger role for the classroom and technology like Checkology in combating the spread of misinformation.

“Once people start going down the rabbit hole, it’s hard to get them out,” she said.

Checkology isn’t dogmatic in its approach, Wildes said. Through interactive lessons, the program is designed to give kids the tools to figure out what’s a hoax and what’s a fact supported by evidence. NLP also puts together a weekly newsletter, The Sift, which is intended to help educators teach students news literacy and to understand why a hoax or conspiracy theory that’s spreading is inaccurate.

Wildes said, based on the behavior she witnesses, that she thinks many middle school kids today are better equipped than adults to reject misinformation.

“I think they really enjoy being spoken to in a way that makes them responsible for their own thoughts,” she said.

WATCH: Former Facebook chief privacy officer on fighting vaccine misinformation

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Google’s cloud outpaces rivals in third quarter as AI battle heats up

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Google's cloud outpaces rivals in third quarter as AI battle heats up

Alphabet CEO Sundar Pichai speaks at the Munich Security Conference at the Hotel Bayerischer Hof in Munich, Germany, on February 16, 2024.

Tobias Hase | Picture Alliance | Getty Images

With Wall Street laser focused on cloud computing this week, Google outpaced its rivals in growth, a key sign for investors that the internet company is gaining traction in artificial intelligence.

Google’s cloud business, which includes infrastructure as well as software subscriptions, grew 35% year over year in the third quarter to $11.35 billion, accelerating from 29% in the prior period.

Amazon Web Services, which remains the market leader, grew 19% to $27.45 billion, meaning it’s more than twice the size of Google Cloud but expanding about half as quickly. Second-place Microsoft said revenue from Azure and other cloud services grew 33% from a year earlier.

Five of the six trillion-dollar tech companies reported results this week, with AI chipmaker Nvidia as the outlier. Amazon, Alphabet and Microsoft always report around the same time, giving investors a snapshot of how the cloud wars are playing out.

“While Alphabet has often been criticized as a Johnny-one-note for its dependence on digital advertising, the rapid growth of Google Cloud has begun to diversify the company’s revenue,” analysts at Argus Research, who recommend buying the stock, wrote in a report on Oct. 31.

For a long time, cloud was a money sink for Google, but that’s no longer the case.

Google reported a 17% cloud operating margin in the third quarter, after first turning a profit last year. It was “a real beat to expectations there,” Melissa Otto, head of technology, media and telecommunications sector research at Visible Alpha, said on CNBC this week. She said she isn’t sure if the company can sustain that level of profitability.

Otto: The scale of Alphabet's cloud business, and spend on AI infrastructure, will be critical

The opposite story has been true at Amazon, which has long counted on AWS for the bulk of total profit.

AWS’ operating margin for the the third quarter was 38%, which analysts at Bernstein described as a “whopping” number. Executives have been careful with hiring and have discontinued less popular AWS services. Also, at the beginning of 2024, Amazon extended the useful life of its servers from five years to six, a change that boosted the operating margin by 200 basis points, or 2 percentage points.

Microsoft this week started giving investors more accurate readings of its Azure public cloud. When the company reported Azure revenue growth in the past, the number would include sales of mobility and security services and Power BI data analytics software. Microsoft, which is the lead investor in ChatGPT creator OpenAI, is getting a hefty boost from AI services.

“Demand continues to be higher than our available capacity,” Amy Hood, Microsoft’s finance chief, said on the company’s earnings call.

While Azure growth in the current quarter will moderate a bit, Hood said it should pick up in the first half of 2025 “as our capital investments create an increase in available AI capacity to serve more of the growing demand.”

Amazon is seeing a similar dynamic.

“I think pretty much everyone today has less capacity than they have demand for, and it’s really primarily chips that are the area where companies could use more supply,” Amazon CEO Andy Jassy said on his company’s earnings call.

To help ease the burden, Amazon relies to a degree on its own processors, in addition to Nvidia’s graphics processing units (GPUs). Jassy said clients are showing interest in Trainium 2, the company’s second-generation chip for training models.

“We’ve gone back to our manufacturing partners multiple times to produce much more than we’d originally planned,” he said.

Google is now on the sixth generation of its own custom tensor processing units for AI. CEO Sundar Pichai told analysts that he’d been spending time with the TPU team.

“I couldn’t be more excited at the forward-looking roadmap, but all of it allows us to both plan ahead in the future and really drive an optimized architecture for it,” he said.

Microsoft introduced its own AI chip in the cloud, Maia, a year ago. The company has started to use Maia chips to power its own services, but it hasn’t yet made it available for customers to rent out, a spokesperson said.

Analysts at DA Davidson said in a note this week that they don’t see this as a battle Microsoft can win going up against Amazon and Google. They have a neutral rating on Microsoft.

Oracle, which generally ranks fourth among U.S. cloud infrastructure companies, is expected to report quarterly results in December. In its last report, Oracle said cloud infrastructure revenue jumped 45% to $2.2 billion, up from 42% growth in the prior quarter.

Oracle recently partnered with its three bigger cloud rivals to make its databases available on their services, a move that Chairman Larry Ellison said on the last earnings calls, “will turbocharge the growth of our database business for years to come.”

WATCH: Otto: The scale of Alphabet’s cloud business, and spend on AI infrastructure, will be critical

Otto: The scale of Alphabet's cloud business, and spend on AI infrastructure, will be critical

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Nvidia to join Dow Jones Industrial Average, replacing rival chipmaker Intel

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Nvidia to join Dow Jones Industrial Average, replacing rival chipmaker Intel

CEO of Nvidia, Jensen Huang, speaks during the launch of the supercomputer Gefion, where the new AI supercomputer has been established in collaboration with EIFO and NVIDIA at Vilhelm Lauritzen Terminal in Kastrup, Denmark October 23, 2024.

Ritzau Scanpix | Mads Claus Rasmussen | Via Reuters

Nvidia is replacing rival chipmaker Intel in the Dow Jones Industrial Average, a shakeup to the blue-chip index that reflects the boom in artificial intelligence and a major shift in the semiconductor industry.

Intel shares were down 1% in extended trading on Friday. Nvidia shares rose 1%.

The switch will take place on Nov. 8. Also, Sherwin Williams will replace Dow Inc. in the index, S&P Dow Jones said in a statement.

Nvidia shares have climbed over 170% so far in 2024 after jumping roughly 240% last year, as investors have rushed to get a piece of the AI chipmaker. Nvidia’s market cap has swelled to $3.3 trillion, second only to Apple among publicly traded companies.

Companies including Microsoft, Meta, Google and Amazon are purchasing Nvidia’s graphics processing units (GPUs), such as the H100, in massive quantities to build clusters of computers for their AI work. Nvidia’s revenue has more than doubled in each of the past five quarters, and has at least tripled in three of them. The company has sginaled that demand for its next-generation AI GPU called Blackwell is “insane.”

With the addition of Nvidia, four of the six trillion-dollar tech companies are now in the index. The two not in the Dow are Alphabet and Meta.

While Nvidia has been soaring, Intel has been slumping. Long the dominant maker of PC chips, Intel has lost market share to Advanced Micro Devices and has made very little headway in AI. Intel shares have fallen by more than half this year as the company struggles with manufacturing challenges and new competition for its central processors.

Intel said in a filing this week that the board’s audit and finance committee approved cost and capital reduction activities, including lowering head count by 16,500 employees and reducing its real estate footprint. The job cuts were originally announced in August.

The Dow contains 30 components and is weighted by the share price of the individual stocks instead of total market value. Nvidia put itself in better position to join the index in May, when the company announced a 10-for-1 stock split. While doing nothing to its market cap, the move slashed the price of each share by 90%, allowing the company to become a part of the Dow without having too heavy a weighting.

The switch is the first change to the index since February, when Amazon replaced Walgreens Boots Alliance. Over the years, the Dow has been playing catchup in gaining exposure to the largest technology companies. The stocks in the index are chosen by a committee from S&P Dow Jones Indices.

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Super Micro’s 44% plunge this week wipes out stock’s gains for the year

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Super Micro's 44% plunge this week wipes out stock's gains for the year

Charles Liang, chief executive officer of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, on Wednesday, June 5, 2024. The trade show runs through June 7. 

Annabelle Chih | Bloomberg | Getty Images

Super Micro investors continued to rush the exits on Friday, pushing the stock down another 9% and bringing this week’s selloff to 44%, after the data center company lost its second auditor in less than two years.

The company’s shares fell as low as $26.23, wiping out all of the gains for 2024. Shares had peaked at $118.81 in March, at which point they were up more than fourfold for the year. Earlier that month, S&P Dow Jones added the stock to the S&P 500, and Wall Street was rallying around the company’s growth, driven by sales of servers packed with Nvidia’s artificial intelligence processors.

Super Micro’s spectacular collapse since March has wiped out roughly $55 billion in market cap and left the company at risk of being delisted from the Nasdaq. On Wednesday, as the stock was in the midst of its second-worst day ever, Super Micro said it will provide a “business update” regarding its latest quarter on Tuesday, which is Election Day in the U.S.

The company’s recent challenges date back to August, when Super Micro said it would not file its annual report on time with the SEC. Noted short seller Hindenburg Research then disclosed a short position in the company and wrote in a report that it identified “fresh evidence of accounting manipulation.” The Wall Street Journal later reported that the Department of Justice was in the early stages of a probe into the company.

Super Micro disclosed on Wednesday that Ernst & Young had resigned as its accounting firm just 17 months after taking over from Deloitte & Touche. The auditor said it was “unwilling to be associated with the financial statements prepared by management.”

A Super Micro spokesperson told CNBC that the company “disagrees with E&Y’s decision to resign, and we are working diligently to select new auditors.” Super Micro does not expect matters raised by Ernst & Young to “result in any restatements of its quarterly financial results for the fiscal year ended June 30, 2024, or for prior fiscal years,” the representative said.

Analysts at Argus Research on Thursday downgraded the stock in the intermediate term to a hold, citing the Hindenburg note, reports of the Justice Department investigation and the departure of Super Micro’s accounting firm, which the analysts called a “serious matter.” Argus’ fears go beyond accounting irregularities, with the firm suggesting that the company may be doing business with problematic entities.

“The DoJ’s concerns, in our view, may be mainly about related-party transactions and about SMCI products ending up in the hands of sanctioned Russian companies,” the analysts wrote.

In September, the month after announcing its filing delay, Super Micro said it had received a notification from the Nasdaq indicating that its late status meant the company wasn’t in compliance with the exchange’s listing rules. Super Micro said the Nasdaq’s rules allowed the company 60 days to file its report or submit a plan to regain compliance. Based on that timeframe, the deadline would be mid-November.

Though Super Micro hasn’t filed financials with the SEC since May, the company said in an August earnings presentation that revenue more than doubled for a third straight quarter. Analysts expect that, for the fiscal first quarter ended September, revenue jumped more than 200% to $6.45 billion, according to LSEG. That’s up from $2.1 billion a year earlier and $1.9 billion in the same fiscal quarter of 2023.

WATCH: I don’t know if Super Micro is guilty or innocent, says Jim Cramer

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