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Look ma no hands — Are self-driving cars already safer than human drivers? I learned a lot by reading dozens of Waymo and Cruise crash reports.

Timothy B. Lee – Sep 1, 2023 11:30 am UTC Aurich Lawson | Getty Images reader comments 347 with

August was an eventful month for driverless taxis in San Francisco. On August 10, the California Public Utilities Commission voted to allow Googles Waymo and GMs Cruise to begin charging customers for driverless taxi rides across the city. A week later, Cruise vehicles were involved in two serious crashes within hours of one another. The next day, the California Department of Motor Vehicles demanded that Cruise cut its driverless taxi fleet in half while these crashes were investigated.

A few days later, New York Times reporter Cade Metz appeared on the Timess flagship podcast, The Daily, to discuss these developments and the state of the self-driving industry.

Metz argued that in recent weeks, it has become more and more clear to the people riding the cars, and to other citizens in the city, that they are flawed, that they do make mistakes, that they can gum up traffic, that they can cause accidents.

Of course self-driving cars are flawedall technologies are. The important question is whether self-driving cars are safer than human-driven cars. And here Metz proclaimed ignorance.

We don’t know yet whether it’s safer than a human driver, he said.

But we actually do know a fair amount about the safety of driverless taxis. Waymo and Cruise have driven a combined total of 8 million driverless miles (a Waymo spokeswoman told me the company has completed more than 4 million driverless miles, and Cruise has said the same). That includes more than 4 million in San Francisco since the start of 2023. And because California law requires self-driving companies to report every significant crash, we know a lot about how theyve performed.

For this story, I read through every crash report Waymo and Cruise filed in California this year, as well as reports each company filed about the performance of their driverless vehicles (with no safety drivers) prior to 2023. In total, the two companies reported 102 crashes involving driverless vehicles. That may sound like a lot, but they happened over roughly 6 million miles of driving. That works out to one crash for every 60,000 miles, which is about five years of driving for a typical human motorist.

These were overwhelmingly low-speed collisions that did not pose a serious safety risk. A large majority appeared to be the fault of the other driver. This was particularly true for Waymo, whose biggest driving errors included side-swiping an abandoned shopping cart and clipping a parked cars bumper while pulling over to the curb.

Cruises record is not impressive as Waymos, but theres still reason to think its technology is on par withand perhaps better thana human driver.

Human beings drive close to 100 million miles between fatal crashes, so it will take hundreds of millions of driverless miles for 100 percent certainty on this question. But the evidence for better-than-human performance is starting to pile up, especially for Waymo. Its important for policymakers to allow this experiment to continue because, at scale, safer-than-human driving technology would save a lot of lives. Waymos impressive safety record EnlargeWaymo

Back in February, Waymo released a report celebrating its first million miles of fully driverless operation, which mostly occurred in the suburbs of Phoenix. Waymos autonomous vehicles (AVs) experienced 20 crashes during those first million miles. Here are some representative examples: A passenger car backed out of a parking space and made contact with the Waymo AV. An SUV backed out of a driveway and made contact with the Waymo AV. The vehicle that had been previously stopped behind the Waymo proceeded forward, making contact with the rear bumper of the Waymo AV. A passenger car that had been stopped behind the Waymo AV passed the Waymo AV on the left. The passenger cars rear passenger side door made contact with the driver side rear of the Waymo AV.

In short, these were mostly low-speed collisions initiated by the other diver.

There were only two cases where a Waymo ran into another vehicle. In one, a motorcyclist in the next lane lost control and fell off their bike. The driverless Waymo slammed on its brakes but couldnt avoid hitting the now-riderless motorcycle at 8 miles per hour. In the other case, another vehicle cut in front of the Waymo, and the AV braked hard but couldnt avoid a collision.

There were two crashes that Waymo thought were serious enough for inclusion in a federal crash database. The more serious of these was when another driver rear-ended a Waymo while looking at their phone.

One of Waymos biggest challenges during its first million miles was avoiding inanimate objects. Waymo vehicles bumped into a construction pylon, a parking lot barrier arm, and a shopping cartall at speeds of between 8 and 13 miles per hour. Clearly, Waymo needs to do a better job of recognizing irregularly shaped objects like these. But when it comes to interacting with other vehicles, Waymo had a basically spotless driving record over those first million miles.

Now lets look at how Waymo has done in San Francisco since the start of 2023. Waymo is still struggling to avoid inanimate objects. Its vehicles collided with cardboard road debris and a chain connecting a sign to a temporary pole. A Waymo also drove into a pothole that was big enough to puncture a tire. And there were two incidents where Waymos scraped parked vehicles. Thats a total of five crashes where the Waymo vehicle was clearly at fault.

The rest of Waymos driverless crashes in San Francisco during 2023 do not seem to have been Waymos fault. I count 11 low-speed crashes where another vehicle rear-ended a Waymo, backed into a stopped Waymo, or scraped a stopped Waymo while trying to squeeze by. There was also an incident where a Waymo got sideswiped by another vehicle changing lanes.

Waymo had two more serious crashes in San Francisco this year: A driverless Waymo was trying to turn left, but another car proceeded into the intersection from the left and made contact with the left side of the Waymo AV. An SUV rear-ended a Waymo hard enough that the passenger in the Waymo reported injuries.

I should also mention the Waymo crash that killed a dog back in May. I didnt mention this earlier because Ive been focusing on driverless vehicles and the Waymo that hit the dog had a safety driver behind the wheel. But this crash is worth mentioning since its one of the most serious ones Waymo has experienced. Advertisement

In an emailed statement, Waymo said that it reviewed the event from many different perspectives and concluded there was no way either Waymos software or a human driver could have avoided hitting the dog. Waymo hasnt provided the public with enough information to verify this claim, but I hope California regulators check Waymos work if they havent done so already. We dont have great data on the safety of human drivers

To sum up, Waymos driverless fleet has experienced: 17 low-speed collisions where another vehicle hit a stationary Waymo 9 collisions where another vehicle rear-ended a Waymo 2 collisions where a Waymo got sideswiped by another vehicle 2 collisions where a Waymo got cut off and wasnt able to brake quickly enough 2 low-speed collisions with stationary vehicles 7 low-speed collisions with inanimate objects like shopping carts and potholes

There are two things to notice about this list. First, other vehicles ran into Waymos 28 times, compared to just four times a Waymo ran into another vehicle (and Waymo says its vehicle got cut off in two of these cases). Second, Waymo was only involved in three or four serious crashes, and none of them appear to have been Waymos fault.

This is impressive because thesestatistics reflect more than 2 million miles of driving (a Waymo spokeswoman told me the company has logged more than 1 million miles in San Francisco since the start of 2023). The National Highway Traffic Safety Board estimates that there are around 6 million car crashes reported to the police each year. Americans drive around 3 trillion miles per year, so roughly speaking, a major crash occurs on the roads once every 500,000 miles.

Most crashes involve two vehicles. So if Waymos vehicles drove as well as a typical human driver, youd expect it to be involved in around eight serious crashes over 2 million miles of driving.

Its important to emphasize that theres a lot of uncertainty about these figures.

We know very little about the safety of our roads, the legal scholar Bryant Walker Smith told me. If we’re looking at just crashes, given how little information is carefully collected and studied, we don’t have any sense of the circumstances of these low-level crashes.

Not all crasheseven serious onesare reported to the police.

Moreover, Smith said, these companies are not driving a representative sample of miles.

Both Waymo and Cruise have their driverless cars avoid freeways, which tend to have fewer crashes per mile of driving. Both companies are active in San Francisco, which has more chaotic streets than most US cities.

On the other hand, a small minority of driversincluding teenagers, elderly people, and drunk driversaccount for a disproportionate share of crashes. An alert and experienced driver gets into crashes at a rate well below the national average. So if we want AVs to drive as well as an alert and experienced driver, we’ll want to set the bar higher than the national average.

With all that said, it seems that Waymo cars get into serious crashes at a significantly lower rate than human-driven cars. Ill have more to say about this after we look at Cruises safety record. Cruise has room for improvement EnlargeCruise

Cruise released a report back in April about its first million driverless miles. The company reported 36 crashes, compared to 20 for Waymos first million driverless miles. I wouldnt put too much stock into that difference, since Cruise was operating mainly in San Francisco, a more chaotic driving environment than the Phoenix suburbs where Waymo started out.

So far in 2023, Cruise has filed an additional 27 crash reports related to its fully driverless cars. What follows is a summary of all 63 crashes Cruise reported through August 25. Ill also count a widely publicized August 17 crash with a fire truck even though theres still no report on this crash on the website of the California Department of Motor Vehicles.

Like Waymo, Cruise has had trouble with its vehicles hitting inanimate objects. Two Cruise vehicles ran into downed power cables. Cruise vehicles also ran into a scooter (without someone on it), a tow dolly on the back of a double-parked truck, a motorized articulating boom lift, and a pothole. The pothole punctured a tire, causing the Cruise AV to swerve into a parked car.

Cruise has also experienced a large number of low-speed crashes where another vehicle (including a scooter in one case and a skateboarder in another) either rear-ended a Cruise AV, backed into one at low speeds, or scraped the side of a Cruise while trying to pass it.

There were also a few rare situations: A Cruise vehicle was stuck in a sideshow event and stationary with vehicles driving around it on either side. (A sideshow is an illegal late-night show where young people perform donuts and other stunts in an intersection.) One of the other cars ran into the Cruise AV. An Infinity Q50 was performing donuts in an intersection before crashing into a Cruise vehicle. A driver drove the wrong way down a one-way street while staring at a phone. The car hit a stopped Cruise vehicle facing the right way.

There were about a dozen side-swipe events where another vehicle either ran into the Cruise AV from the side during a lane change or tried to make a turn from a middle lane, crossing the path of the Cruise AV. Most of these crashes occurred during Cruises first million miles, so Cruise may be getting better at handling these situations.

Its important to note that Cruise has logged more than four million miles in San Francisco, so Cruises crash reports represent roughly twice as many miles as Waymos. Once you adjust for that, Waymo and Cruise seem to have been involved in low-stakes crashes at similar rates.

For example, Cruise vehicles got rear-ended 17 times over about 4 million miles, while Waymo vehicles got rear-ended seven times over roughly 2 million miles. That makes sense given that Cruise drove twice as many miles and that Waymo logged almost half of its miles in the tame Phoenix suburbs.

But even taking those differences into account, there are a couple areas where Cruises performance does not seem to be on par with Waymo.

One is significant crashes where Cruise was clearly at fault. I saw three examples of this: A Cruise AV mistakenly thought the vehicle ahead of it was starting to turn left. The Cruise ran into the other vehicle when it turned right instead. A Cruise AV changed lanes when there wasnt enough space to do so, cutting off another vehicle and leading to a crash. A Cruise AV ran into the back of a city bus. Cruise subsequently determined that its software got confused because it was an articulated bus (the kind with an accordion joint in the middle) and Cruises software couldnt handle two parts of a vehicle moving in slightly different directions. Advertisement

Each of these mistakes strikes me as more serious than any of Waymos mistakes (recall that all of Waymos clearly at-fault crashes were low-speed collisions with inanimate objects or parked vehicles). Cruise might have a problem with intersections Enlarge

Cruises other trouble spot is intersections. Cruise says two bicyclists have run stop signs and crashed into Cruise vehicles. And there have been five vehicles that ran red lights and crashed into Cruise vehicles: This Mercedes sedan This Volkswagen hatchback This Infinity Q60 This Dodge Charger This fire truck with its sirens blaring

A passenger in that last Cruise AV was taken to the hospital; Cruise described their injuries as non-severe.

Perhaps all of these crashes (with the possible exception of the fire truck) were the fault of the other drivers (and cyclists). Still, its interesting that over two million miles of driverless operation, no Waymo AVs got hit by cars running red lights or bicycles running stop signs.

Again, this may be partly because Cruise has driven more milesand especially more miles in San Francisco. Also, Cruise has largely operated at night, when there might be more impaired drivers on the road.

But I think there might be something else going on here.

A couple of years ago, Waymo published research exploring the potential for self-driving cars to prevent crashes by anticipating the reckless behavior of other drivers. Waymo researchers obtained detailed records about fatal crashes that occurred in and around the Phoenix suburb of Chandler (where Waymo launched its first driverless taxi service). Waymo then hired an independent engineering firm to create detailed digital reconstructions of these crashes. Then the company loaded this data into its simulator to explore how Waymos self-driving software would have reacted in the seconds preceding each crash.

Waymo found its software could prevent every crash if it took the role of the initiator, the vehicle whose erratic behavior set the crash in motion. More surprisingly, Waymo also found its software could prevent 82 percent of crashes playing the role of the other driver.

The most common setting for fatal crashes in this data set was intersectionsincluding a number of vehicles running red lights. Waymo found that when its software played the role of the other driver, it was able to avoid crashes in 81 percent of scenarios at intersections.

In the wake of the Cruise collision with a ire truck on August 17, Waymo told industry analyst Brad Templeton that its vehicles would have handled the situation better than Cruise did:

When we hear sirens, our vehicle will slow and then depending on how the situation develops, we will either pull over or stop ahead of intersections where there might be crossing emergency vehicles, even if we have a green light. The system is designed to remain cautious and not enter an intersection if it is still reasoning whether the emergency vehicle is approaching the intersection based on what it is sensing.

I think technology like this may explain why Waymo has been successful at avoiding major crashes at intersections. Not only do Waymos vehicles follow the letter of the law (like stopping at red lights), they may also try to anticipate and avoid dangerous situations (like vehicles running red lights).

Cruise vehicles do not seem especially cautious about intersections. For example, a Reddit user posted a video from August 22 showing a Cruise vehicle crossing an intersection several seconds after the opposing traffic got a green light. Cruise says its vehicle was already in the intersection when its light turned red so the vehicle didnt break the law. Maybe thats technically trueIm not an expert on California traffic law. But Im pretty sure it would have been safer for the car to stay where it was and wait for the next green light. Cruises technology is pretty good, but Waymos is better Enlarge / Waymo tested its technology for more than 20 million miles before launching a driverless service.

The bottom line is that Im convinced that Waymo vehicles drive more safely than Cruise vehicles. This isnt surprising; Waymo started its life as the Google self-driving project several years before Cruise was founded. Back in 2020, Waymo announced it had completed 20 million miles of on-road testing (almost all of them with safety drivers). The same year, Cruise reached 2 million miles.

In short, Waymo has invested more time and resources into its technology. It would be surprising if all that extra work didnt yield superior performance. With that said, I dont want to be too negative about Cruise. Because while the companys technology doesnt seem to be as good as Waymos, its still pretty good.

Earlier, I discussed why its so difficult to develop a good benchmark for human driving performance. We only know about crashes that get reported to the police or other authorities, giving us a patchy understanding of how many crashes really occur.

Cruise tried to address this problem by hiring a team of prominent academic researchers to study the driving behavior of ride-hail drivers in San Francisco. The researchers examined 5.6 million miles of data and concluded that collisions involving San Francisco ride-hail drivers occur about once every 20,000 miles. That includes a lot of minor crashes that wouldnt be reported to police.

Based on this data, Cruise claimed that over its first million miles, its vehicles crashed 56 percent less often per mile than a typical human driver. Moreover, Cruise estimated that its cars were 73 percent less likely to be in a crash with a risk of a serious injury and 93 percent less likely to be the primary contributor to a crash.

One should take these conclusions with a grain of salt given that the research was commissioned by Cruise. But they dont seem crazy. Cruise vehicles really do seem to crash into other vehicles much less often than vice versa. So I wouldnt be surprised if Cruise vehicles already drive more safely than the average human driver. The need for real-world testing

The big question for policymakers is whether to allow Waymo and Cruise to continue and even expand their services. This should be an easy call with respect to Waymo, which seems to be safer than a human driver already. The faster Waymo scales up, the more crashes can be prevented.

I think Cruises tech is probably safer than a human driver too, but its a closer call. I could imagine changing my mind in the coming months as more data comes in.

Still, its important to remember that access to public roads is essential for testing and improving self-driving technology. This is not a technology Waymo or Cruise can meaningfully test in the lab. The companies need exposure to the full complexity of real public streets in order to make progress. And given that both companies are likely to eventually develop products that are much safer than human drivers, slowing down the development of the technology could easily cost more lives than it saves.

So while the DMVs decision to cut the size of Cruises fleet in the wake of the August 17 crashes was understandable, I hope the decision is short-lived. Ultimately the only way for Cruise to improve its technology is by testing it on public roads. And well all benefit from the widespread availability of self-driving cars that are dramatically safer than human drivers.

One easy way for policymakers to improve safetyor at least accountabilitywould to require self-driving companies to be more even more transparent about their safety records. This story relied heavily on Californias excellent website that publishes all of the Waymo and Cruise crash reports. Id love for the California Department of Motor Vehicles to go a step further and require self-driving companies to submit video footage of the seconds before and after each crash. That way, members of the public could evaluate whether companies descriptions of crashes are accurate.

It would also be very helpful for regulators in other statesor perhaps federal officialsto require the same kind of crash reporting that they have in California. For example, Waymo is running a substantial driverless taxi service in Phoenix, but we know very little about how well Waymo’s AVs have performed there in recent months. More transparency here and in other states could help to build public trust.

Tim Lee was on staff at Ars from 2017 to 2021. He recently launched a new newsletter,Understanding AI. It explores how AI works and how it’s changing our world. You can subscribe to his newsletterhere. reader comments 347 with Timothy B. Lee Timothy is a senior reporter covering tech policy and the future of transportation. He lives in Washington DC. Advertisement Promoted Comments Tim Lee The 2 final paragraphs should have been at the top, since they cast doubt on all of the stats the author uses to tell us how safe Waymo and Cruise vehicles are. We are only seeing very partial data from these companies in only some cities where they operate, and no crash video (because that would be too outrageous, presumably). WaPo noted on Aug 10 that even in CA they "are not required to report a range of other incidents that affect the public such as when a car veers into a bike or bus lane or stops short and disrupts traffic." They also don’t report "the many other examples of issues the cars have run into when they were operating in manual mode, or after the autonomous car was taken over by a human driver," say, at the last moment to avoid a crash.

Basically, the data from AV companies used in this article is inherently poor and incomplete. That the author uses it to declare his confidence before getting to just a few of the many caveats that reduce its value? Not great science journalism.Hi, a couple of important clarifications:

My analysis is specifically fcused on driverless miles in the cases where Waymo and Cruise have published a complete record of their crashes. That’s the first million miles for both Waymo and Cruise, plus miles in San Francisco since those first million miles. I’m ignoring miles since early 2023 in states other than California precisely because the companies aren’t required to report every crash. So while it’s true that the crash data I used doesn’t cover every single driverless miles they’ve driven, I’m doing an apples-to-apples comparison in the sense that the numerator (number of crashes) matches up with the denominator (miles that produced those crashes).

Specifically, I counted:

Waymo’s first million miles (mostly in Phoenix) Cruise’s first million miles (mostly in SF) Cruise miles in SF since January 2023 (around 3 million) Waymo miles in SF since January 2023 (more than 1 million)
I did not factor in the 1-2 million miles of driving in Phoenix in 2023 because Waymo has not published complete crash statistics for those miles.

Also all analysis is specifically focused on fully driverless miles where there was no one in the driver’s seat. So "the many other examples of issues the cars have run into when they were operating in manual mode, or after the autonomous car was taken over by a human driver" are not factored into the analysis, but I also don’t give Waymo and Cruise "credit" for those miles. The 4, 6, and 8 million mile figures I cite near the beginning of the piece are fully driverless miles where there was no safety driver to take over in case of emergency. September 1, 2023 at 1:27 pm TimothyAWiseman The fact that these cars keep getting rear-ended tells me that they have an unreasonable tendency to slam on the brakes / otherwise stop in an unpredictable fashion.No. I have been rear ended 3 times. Twice I was stopped at a red and the driver behind me was simply inattentive. I was completely predictable and in fact required to be stopped.

The other was when someone in front of me slammed on their breaks to avoid hitting an animal that ran into the road. I managed to stop in time, the person behind me didn’t. While I suppose I was unpredictable that time, it was a necessary and unavoidable unpredictability.

The only time I have rear-ended someone else was when I was first learning to use a stick-shift. I hit the clutch instead of the brake. The driver in front of me was behaving perfectly predictably and it was entirely my fault.

Also, notably, 0 of those incidents were reported to police and only two were even reported to insurance. If you are relying on public records, it would look like I have never been in rear-end collision while at least in California the autonomous cars are required to report all of theirs. September 1, 2023 at 4:59 pm Channel Ars Technica ← Previous story Next story → Related Stories Today on Ars

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Tech founders call on Sequoia Capital to denounce VC Shaun Maguire’s Mamdani comments

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Tech founders call on Sequoia Capital to denounce VC Shaun Maguire's Mamdani comments

Almost 600 people have signed an open letter to leaders at venture firm Sequoia Capital after one of its partners, Shaun Maguire, posted what the group described as a “deliberate, inflammatory attack” against the Muslim Democratic mayoral candidate in New York City.

Maguire, a vocal supporter of President Donald Trump, posted on X over the weekend that Zohran Mamdani, who won the Democratic primary last month, “comes from a culture that lies about everything” and is out to advance “his Islamist agenda.”

The post had 5.3 million views as of Monday afternoon. Maguire, whose investments include Elon Musk’s SpaceX and X as well as artificial intelligence startup Safe Superintelligence, also published a video on X explaining the remark.

Those signing the letter are asking Sequoia to condemn Maguire’s comments and apologize to Mamdani and Muslim founders. They also want the firm to authorize an independent investigation of Maguire’s behavior in the past two years and post “a zero-tolerance policy on hate speech and religious bigotry.”

They are asking the firm for a public response by July 14, or “we will proceed with broader public disclosure, media outreach and mobilizing our networks to ensure accountability,” the letter says.

Sequoia declined to comment. Maguire didn’t respond to a request for comment, but wrote in a post about the letter on Wednesday that, “You can try everything you want to silence me, but it will just embolden me.”

Among the signees are Mudassir Sheikha, CEO of ride-hailing service Careem, and Amr Awadallah, CEO of AI startup Vectara. Also on the list is Abubakar Abid, who works in machine learning Hugging Face, which is backed by Sequoia, and Ahmed Sabbah, CEO of Telda, a financial technology startup that Sequoia first invested in four years ago.

At least three founders of startups that have gone through startup accelerator program Y Combinator added their names to the letter.

Sequoia as a firm is no stranger to politics. Doug Leone, who led the firm until 2022 and remains a partner, is a longtime Republican donor, who supported Trump in the 2024 election. Following Trump’s victory in November, Leone posted on X, “To all Trump voters:  you no longer have to hide in the shadows…..you’re the majority!!”

By contrast, Leone’s predecessor, Mike Moritz, is a Democratic megadonor, who criticized Trump and, in August, slammed his colleagues in the tech industry for lining up behind the Republican nominee. In a Financial Times opinion piece, Moritz wrote Trump’s tech supporters were “making a big mistake.”

“I doubt whether any of them would want him as part of an investment syndicate that they organised,” wrote Moritz, who stepped down from Sequoia in 2023, over a decade after giving up a management role at the firm. “Why then do they dismiss his recent criminal conviction as nothing more than a politically inspired witch-hunt over a simple book-keeping error?”

Neither Leone nor Moritz returned messages seeking comment.

Roelof Botha, Sequoia’s current lead partner, has taken a more neutral stance. Botha said at an event last July that Sequoia as a partnership doesn’t “take a political point of view,” adding that he’s “not a registered member of either party.” Boelof said he’s “proud of the fact that we’ve enabled many of our partners to express their respected individual views along the way, and given them that freedom.”

Maguire has long been open with his political views. He said on X last year that he had “just donated $300k to President Trump.”

Mamdani, a self-described democratic socialist, has gained the ire of many people in tech and in the business community more broadly since defeating former New York Gov. Andrew Cuomo in the June primary.

— CNBC’s Ari Levy contributed to this report.

WATCH: SpaceX valuation is maybe even conservative, says Sequoia’s Shaun Maguire

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Samsung expects second-quarter profits to more than halve as it struggles to capture AI demand

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Samsung expects second-quarter profits to more than halve as it struggles to capture AI demand

Samsung signage during the Nvidia GPU Technology Conference (GTC) in San Jose, California, US, on Thursday, March 20, 2025.

David Paul Morris | Bloomberg | Getty Images

South Korea’s Samsung Electronics on Tuesday forecast a 56% fall in profits for the second as the company struggles to capture demand from artificial intelligence chip leader Nvidia. 

The memory chip and smartphone maker said in its guidance that operating profit for the quarter ending June was projected to be around 4.6 trillion won, down from 10.44 trillion Korean won year over year.

The figure is a deeper plunge compared to smart estimates from LSEG, which are weighted toward forecasts from analysts who are more consistently accurate.

According to the smart estimates, Samsung was expected to post an operating profit of 6.26 trillion won ($4.57 billion) for the quarter. Meanwhile, Samsung projected its revenue to hit 74 trillion won, falling short of LSEG smart estimates of 75.55 trillion won.

Samsung is a leading player in the global smartphone market and is also one of the world’s largest makers of memory chips, which are utilized in devices such as laptops and servers.

However, the company has been falling behind competitors like SK Hynix and Micron in high-bandwidth memory chips — an advanced type of memory that is being deployed in AI chips.

“The disappointing earnings are due to ongoing operating losses in the foundry business, while the upside in high-margin HBM business remains muted this quarter,” MS Hwang, Research Director at Counterpoint Research, said about the earnings guidance.

SK Hynix, the leader in HBM, has secured a position as Nvidia’s key supplier. While Samsung has reportedly been working to get the latest version of its HBM chips certified by Nvidia, a report from a local outlet suggests these plans have been pushed back to at least September.

The company did not respond to a request for comment on the status of its deals with Nvidia.

Ray Wang, Research Director of Semiconductors, Supply Chain and Emerging Technology at Futurum Group told CNBC that it is clear that Samsung has yet to pass Nvidia’s qualification for its most advanced HBM.

“Given that Nvidia accounts for roughly 70% of global HBM demand, the delay meaningfully caps near-term upside,” Wang said. He noted that while Samsung has secured some HBM supply for AI processors from AMD, this win is unlikely to contribute to second-quarter results due to the timing of production ramps.

Meanwhile, Samsung’s chip foundry business continues to face weak orders and serious competition from Taiwan Semiconductor Manufacturing Company, Wang added.

Reuters reported in September that Samsung had instructed its subsidiaries worldwide to cut 30% of staff in some divisions, citing sources familiar with the matter.

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Drones are sending ‘overwhelming amounts’ of drugs into prisons – and could help inmates escape, report warns

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Drones are sending 'overwhelming amounts' of drugs into prisons - and could help inmates escape, report warns

Sophisticated drones sending “overwhelming amounts” of drugs and weapons into prisons represent a threat to national security, according to an annual inspection report by the prisons watchdog.

HMP chief inspector of prisons Charlie Taylor has warned criminal gangs are targeting jails and making huge profits selling contraband to a “vulnerable and bored” prison population.

The watchdog boss reiterated his concerns about drones making regular deliveries to two Category A jails, HMP Long Lartin and HMP Manchester, which hold “the most dangerous men in the country”, including terrorists.

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Ex-convict: Prison is ‘birthing bigger criminals’

Mr Taylor said “the police and prison service have in effect ceded the airspace” above these two high-security prisons, which he said was compromising the “safety of staff, prisoners, and ultimately that of the public”.

“The possibility now whereby we’re seeing packages of up to 10kg brought in by serious organised crime means that in some prisons there is now a menu of drugs available,” he said. “Anything from steroids to cannabis, to things like spice and cocaine.”

“Drone technology is moving fast… there is a level of risk that’s posed by drones that I think is different from what we’ve seen in the past,” warned the chief inspector – who also said there’s a “theoretical risk” that a prisoner could escape by being carried out of a jail by a drone.

He urged the prison service to “get a grip” of the issue, stating: “We’d like to see the government, security services, coming together, using technology, using intelligence, so that this risk doesn’t materialise.”

The report highlights disrepair at prisons around the country
Image:
The report highlights disrepair at prisons around the country

The report makes clear that physical security – such as netting, windows and CCTV – is “inadequate” in some jails, including Manchester, with “inexperienced staff” being “manipulated”.

Mr Taylor said there are “basic” measures which could help prevent the use of drones, such as mowing the lawn, “so we don’t get packages disguised as things like astro turf”.

Responding to the report, the Prison Advice and Care Trust (PACT) said: “The ready access to drugs is deeply worrying and is undermining efforts to create places of rehabilitation.”

Mr Taylor’s report found that overcrowding continues to be what he described as a “major issue”, with increasing levels of violence against staff and between prisoners, combined with a lack of purposeful activity.

Some 20% of adult men responding to prisoner surveys said they felt unsafe at the time of the inspection, increasing to 30% in the high security estate.

Andrea Coomber, chief executive of the Howard League for Penal Reform, said: “This report is a checklist for all the reasons the government must prioritise reducing prison numbers, urgently.

“Sentencing reform is essential, and sensible steps to reduce the prison population would save lives.”

Read more UK news:
The human impact of the Post Office scandal
Govt to ban ‘appalling’ NDAs that silence victims

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May: Male prison capacity running at 99%

The report comes after the government pledged to accept most of the recommendations proposed in the independent review of sentencing policy, with the aim of freeing up around 9,500 spaces.

Those measures won’t come into effect until spring 2026.

Prisons Minister Lord Timpson said Mr Taylor’s findings show “the scale of the crisis” the government “inherited”, with “prisons dangerously full, rife with drugs and violence”.

He said: “After just 500 prison places added in 14 years, we’re building 14,000 extra – with 2,400 already delivered – and reforming sentencing to ensure we never run out of space again.

“We’re also investing £40m to bolster security, alongside stepping up cooperation with police to combat drones and stop the contraband which fuels violence behind bars.”

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