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Iranians protest to demand justice and highlight the death of Mahsa Amini, who was arrested by morality police and subsequently died in hospital in Tehran under suspicious circumstances.

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Iranians are turning to virtual private networks to bypass widespread internet disruptions as the government tries to conceal its crackdown on mass protests.

Outages first started hitting Iran’s telecommunications networks on Sept 19., according to data from internet monitoring companies Cloudflare and NetBlocks, and have been ongoing for the last two and a half weeks.

Internet monitoring groups and digital rights activists say they’re seeing “curfew-style” network disruptions every day, with access being throttled from around 4 p.m. local time until well into the night.

Tehran blocked access to WhatsApp and Instagram, two of the last remaining uncensored social media services in Iran. Twitter, Facebook, YouTube and several other platforms have been banned for years.

As a result, Iranians have flocked to VPNs, services that encrypt and reroute their traffic to a remote server elsewhere in the world to conceal their online activity. This has allowed them to restore connections to restricted websites and apps.

On Sept. 22, a day after WhatsApp and Instagram were banned, demand for VPN services skyrocketed 2,164% compared to the 28 days prior, according to figures from Top10VPN, a VPN reviews and research site.

Iran shuts down the internet as government cracks down on protests

By Sept. 26, demand peaked at 3,082% above average, and it has continued to remain high since, at 1,991% above normal levels, Top10VPN said.

“Social media plays a crucial role in protests all around the world,” Simon Migliano, head of research at Top10VPN, told CNBC. “It allows protesters to organize and ensure the authorities can’t control the narrative and suppress evidence of human rights abuses.”

“The Iranian authorities’ decision to block access to these platforms as the protests erupted has caused demand for VPNs to skyrocket,” he added.

Demand is much higher than during the uprisings of 2019, which were triggered by rising fuel prices and led to a near-total internet blackout for 12 days. Back then, peak demand was only around 164% higher than usual, according to Migliano.

Nationwide protests over Iran’s strict Islamic dress code began on Sept. 16 following the death of Mahsa Amini, a 22-year-old woman. Amini died under suspicious circumstances after being detained — and allegedly struck — by Iran’s so-called “morality police” for wearing her hijab too loosely. Iranian authorities denied any wrongdoing and claimed Amini died of a heart attack.

At least 154 people have been killed in the protests, including children, according to the nongovernmental group Iran Human Rights. The government has reported 41 deaths. Tehran has sought to prevent the sharing of images of its crackdown and hamper communication aimed at organizing further demonstrations.

The Iranian Foreign Ministry did not immediately respond to a CNBC request for comment.

Why VPNs are popular in Iran

VPNs are a common way for people under regimes with strict internet controls to access blocked services. In China, for instance, they’re often used as a workaround to restrictions on Western platforms blocked by Beijing, including Google, Facebook and Twitter. Homegrown platforms like Tencent’s WeChat are extremely limited in terms of what can be said by users.

Russia saw a similar rise in demand for VPNs in March after Moscow tightened internet curbs following the invasion of Ukraine.

Swiss startup Proton said it saw daily signups to its VPN service balloon as much as 5,000% at the peak of the Iran protests compared to average levels. Proton is best known as the creator of ProtonMail, a popular privacy-focused email service.

“Since the killing of Mahsa Amini, we have seen a huge uptick in demand for Proton VPN,” Proton CEO and founder Andy Yen told CNBC. “Even prior to that, though, VPN usage is high in Iran due to censorship and fears of surveillance.”

“Historically, we have seen internet crackdowns during periods of unrest in Iran which lead to a rise in VPN usage.”

The most popular VPN services during the protests in Iran have been Lantern, Mullvad and Psiphon, according to Top10VPN, with ExpressVPN also seeing big increases. Some VPNs are free to use, while others require a monthly subscription.

Not a silver bullet

The use of VPNs in tightly restricted countries like Iran hasn’t been without its challenges.

“It is fairly easy for regimes to block the IP addresses of the VPN servers as they can be found quite easily,” said Deryck Mitchelson, field chief information security officer for the EMEA region at Check Point Software.

“For that reason you will find that open VPNs are only available for a short duration before they are identified and blocked.”

Periodic internet outages in Iran have “continued daily in a curfew-style rolling manner,” said NetBlocks, in a blog post. The disruption “affects connectivity at the network layer,” NetBlocks said, meaning they’re not  easily solved through the use of VPNs. 

Mahsa Alimardani, a researcher at free speech campaign group Article 19, said a contact she’s been communicating with in Iran showed his network failing to connect to Google, despite having installed a VPN.

“This is new refined deep packet inspection technology that they’ve developed to make the network extremely unreliable,” she said. Such technology allows internet service providers and governments to monitor and block data on a network.

Authorities are being much more aggressive in seeking to thwart new VPN connections, she added.

Yen said Proton has “anti-censorship technologies” built into its VPN software to “ensure connectivity even under challenging network conditions.”

VPNs aren’t the only techniques citizens can use to circumvent internet censorship. Volunteers are setting up so-called Snowflake proxy servers, or “proxies,” on their browsers to allow Iranians access to Tor — software that routes traffic through a “relay” network around the world to obfuscate their activity.

“As well as VPNs, Iranians have also been downloading Tor in significantly greater numbers than usual,” said Yen.

Meanwhile, encrypted messaging app Signal compiled a guide on how Iranians can use proxies to bypass censorship and access the Signal app, which was blocked in Iran last year. Proxies serve a similar purpose as Tor, tunneling traffic through a community of computers to help users in countries where online access is restricted preserve anonymity.

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Inside one of the first all-female hacker houses in San Francisco

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Inside one of the first all-female hacker houses in San Francisco

For Molly Cantillon, living in a hacker house wasn’t just a dream, but a necessity.

“I had lived in a few hacker houses before and wanted to replicate that energy,” said Cantillon, 20, co-founder of HackHer House and founder of the startup NOX. “A place where really energetic, hardcore people came together to solve problems. But every house I lived in was mostly male. It was obvious to me that I wanted to do the inverse and build an all-female hacker house that created the same dynamic but with women.”

Cantillon, who has lived in several hacker houses over the years, saw a need for a space dedicated exclusively to women. That’s why she co-founded HackHer House, the first all-female hacker house in the San Francisco Bay Area.

“A hacker house is a shared living space where builders and innovators come together to work on their own projects while collaborating with others,” said Jennifer Li, General Partner at Andreessen Horowitz and sponsor of the HackHer House. “It’s a community that thrives on creativity and resource sharing, making it a cost-effective solution for those in high-rent areas like Silicon Valley, where talented founders and engineers can easily connect and support each other.”

Founded by Cantillon, Zoya Garg, Anna Monaco and Anne Brandes, this house was designed to empower women in a tech world traditionally dominated by men. 

“We’re trying to break stereotypes here,” said Garg, 21, a rising senior at Stanford University. “This house isn’t just about living together; it’s about creating a community where women can thrive in tech.”

Located in North Beach, HackHer House was home this summer to seven women, all of whom share the goal of launching successful ventures in tech. 

Venture capital played a key role in making HackHer House possible. With financial backing, the house offered subsidized rent, allowing the women to focus on their projects instead of struggling with the Bay Area’s notoriously high living costs.

“New grad students face daunting living expenses, with campus costs reaching the high hundreds to over a thousand dollars a month,” said Li. “In the Bay Area, finding a comfortable room typically starts at $2,000, and while prices may have eased slightly, they remain significantly higher than the rest of the U.S. This reality forces many, including founders, to share rooms or crash on friends’ couches just to make ends meet.” 

Hacker houses aren’t new to the Bay Area or cities like New York and London. These live-in incubators serve as homes and workspaces, offering a collaborative environment where tech founders and innovators can share ideas and resources. In a city renowned for tech advancements, hacker houses are viewed as critical for driving the next wave of innovation. By providing affordable housing and a vibrant community, these spaces enable entrepreneurs to thrive in an otherwise cutthroat and expensive market.

Watch this video to see how Hacker House is shaping the future of women in tech.

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Elon Musk’s X will be allowed back online in Brazil after paying one more fine

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Elon Musk's X will be allowed back online in Brazil after paying one more fine

The Federal Supreme Court (STF) in Brazil suspends Elon Musk’s social network after it fails to comply with orders from Minister Alexandre de Moraes to block accounts of those being investigated by the Brazilian justice system. 

Cris Faga | Nurphoto | Getty Images

X has to pay one last fine before the social network owned by Elon Musk is allowed back online in Brazil, according to a decision out Friday from the country’s top justice, Alexandre de Moraes.

The platform was suspended nationwide at the end of August, a decision upheld by a panel of judges on Sept. 2. Earlier this month, X filed paperwork informing Brazil’s supreme court that it is now in compliance with orders, which it previously defied.

As Brazil’s G1 Globo reported, X must now pay a new fine of 10 million reals (about $2 million) for two additional days of non-compliance with the court’s orders. X’s legal representative in Brazil, Rachel de Oliveira, is also required to pay a fine of 300,000 reals.

The case dates back to April, when de Moraes, the minister of Brazil’s supreme court, known as Supremo Tribunal Federal (STF), initiated a probe into Musk and X over alleged obstruction of justice.

Musk had vowed to defy the court’s orders to take down certain accounts in Brazil. He called the court’s actions “censorship,” and railed online against de Moraes, describing the judge as a “criminal” and encouraging the U.S. to end foreign aid to Brazil.

In mid-August, Musk closed down X offices in Brazil. That left his company without a legal representative in the country, a federal requirement for all tech platforms to do business there.

By Aug. 28, de Moraes’ court threatened a ban and fines if X didn’t appoint a legal representative within 24 hours, and if it didn’t comply with takedown requests for accounts the court said had engaged in plots to dox or harm federal agents, among other things.

Earlier this month, the STF froze the business assets of Musk companies, including both X and satellite internet business Starlink, operating in Brazil. The STF said in court filings that it viewed Starlink parent SpaceX and X as companies that worked together as related parties.

Musk wrote in a post on X at that time that, “Unless the Brazilian government returns the illegally seized property of and SpaceX, we will seek reciprocal seizure of government assets too.”

On August 29, 2024, in Brazil, the Minister of the Supreme Court, STF Minister Alexandre de Moraes, orders the blocking of the accounts of another company, Starlink, of Elon Musk, to guarantee the payment of fines imposed by the STF due to the lack of representatives of X in Brazil. 

Ton Molina | Nurphoto | Getty Images

As head of the STF, de Moraes has long supported federal regulations to rein in hate speech and misinformation online. His views have garnered pushback from tech companies and far-right officials in the country, along with former President Jair Bolsonaro and his supporters.

Bolsonaro is under investigation, suspected of orchestrating a coup in Brazil after losing the 2022 presidential election to current President Luiz Inacio Lula da Silva.

While Musk has called for retribution against de Moraes and Lula, he has worked with and praised Bolsonaro for years. The former president of Brazil authorized SpaceX to deliver satellite internet services commercially in Brazil in 2022.

Musk bills himself as a free speech defender, but his track record suggests otherwise. Under his management, X removed content critical of ruling parties in Turkey and India at the government’s insistence. X agreed to more than 80% of government take-down requests in 2023 over a comparable period the prior year, according to analysis by the tech news site Rest of World.

X faces increased competition in Brazil from social apps like Meta-owned Threads, and Bluesky, which have attracted users during its suspension.

Starlink also faces competition in Brazil from eSpace, a French-American firm that gained permission this year from the National Telecommunications Agency (Anatel) to deliver satellite internet services in the country.

Lukas Darien, an attorney and law professor at Brazil’s Facex University Center, told CNBC that the STF’s enforcement actions against X are likely to change the way large technology companies will view the court.

“There is no change to the law here,” Darien wrote in a message. “But specifically, big tech companies are now aware that the laws will be applied regardless of the size of a business and the magnitude of its reach in the country.”

Musk and representatives for X didn’t immediately respond to a request for comment on Friday.

Late Thursday, X Global Government Affairs posted the following statement:

“X is committed to protecting free speech within the boundaries of the law and we recognize and respect the sovereignty of the countries in which we operate. We believe that the people of Brazil having access to X is essential for a thriving democracy, and we will continue to defend freedom of expression and due process of law through legal processes.”

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OpenAI sees roughly $5 billion loss this year on $3.7 billion in revenue

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OpenAI sees roughly  billion loss this year on .7 billion in revenue

Sam Altman, CEO of OpenAI, at the Hope Global Forums annual meeting in Atlanta on Dec. 11, 2023.

Dustin Chambers | Bloomberg | Getty Images

OpenAI, the creator of ChatGPT, expects about $5 billion in losses on $3.7 billion in revenue this year, CNBC has confirmed.

The company generated $300 million in revenue last month, up 1,700% since the beginning of last year, and expects to bring in $11.6 billion in sales next year, according to a person close to OpenAI who asked not to be named because the numbers are confidential.

The New York Times was first to report on OpenAI’s financials earlier on Friday after viewing company documents. CNBC hasn’t seen the financials.

OpenAI, which is backed by Microsoft, is currently pursuing a funding round that would value the company at more than $150 billion, people familiar with the matter have told CNBC. Thrive Capital is leading the round and plans to invest $1 billion, with Tiger Global planning to join as well.

OpenAI CFO Sarah Friar told investors in an email Thursday that the funding round is oversubscribed and will close by next week. Her note followed a number of key departures, most notably technology chief Mira Murati, who announced the previous day that she was leaving OpenAI after six and a half years.

Also this week, news surfaced that OpenAI’s board is considering plans to restructure the firm to a for-profit business. The company will retain its nonprofit segment as a separate entity, a person familiar with the matter told CNBC. The structure would be more straightforward for investors and make it easier for OpenAI employees to realize liquidity, the source said.

OpenAI’s services have exploded in popularity since the company launched ChatGPT in late 2022. The company sells subscriptions to various tools and licenses its GPT family of large language models, which are powering much of the generative AI boom. Running those models requires a massive investment in Nvidia’s graphics processing units.

The Times, citing an analysis by a financial professional who reviewed OpenAI’s documents, reported that the roughly $5 billion in loses this year are tied to costs for running its services as well as employee salaries and office rent. The costs don’t include equity-based compensation, “among several large expenses not fully explained in the documents,” the paper said.

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