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Alongside new iPhones and Apple Watches, Apple is releasing a new version of its AirPods Pro this month.

The 2nd Generation AirPods Pro with USB-C — a mouthful of a model name — don’t have any radical hardware changes. Apple replaced the proprietary Lightning port with a USB-C charger to match the rest of its lineup.

But a slew of software features launching alongside the new AirPods significantly change how noise-canceling on the wireless buds works in practice, and will make it much easier for AirPods Pro users to leave their earbuds in all day while navigating cities or talking to co-workers.

Apple has given the new features various names — Adaptive Audio, Conversation Awareness, Personalized Volume — but taken together, and using the default settings on a review unit of the new $249 AirPods, the upshot is that the device uses machine learning and artificial intelligence to turn down music when in a conversation or allow necessary nearby sounds into the headphones.

Instead of taking out your AirPods or turning off noise-canceling entirely when you’re navigating a treacherous street or having a conversation with a co-worker, users can now leave in their AirPods and rely on Apple’s software to intelligently decide what the user needs to hear.

Overall, the improvements are subtle but nice. They’re not a reason to upgrade AirPods if you have an older pair that’s working perfectly, but they are worth reaching for if you are getting new wireless headphones and know you don’t like to be constantly taking them in and out.

However, from a technological perspective, the new AirPods are exciting. Apple is using cutting-edge technology and its own customized chips to filter the world of sound through Apple’s hardware, and to augment or mute individual sounds to make your daily experience better, all powered by AI. Apple’s headphones are going far beyond the simple on-or-off noise-canceling features on competing devices.

The concept is not that far away from the “spatial computing” Apple introduced with the Vision Pro VR headset, which uses machine learning to integrate the real and computer worlds. Apple calls the AirPods a “wearable,” and reports it in the same revenue category as its Apple Watch. With its new adaptive features, the AirPods are more wearable than ever, and continue to be one of the company’s most intriguing product lines in terms of a look at the future of computing, even if they don’t get the same attention as the iPhone.

How it worked

While the adaptive technology isn’t quite seamless yet, it is a nice improvement over the blunter, muffling noise-cancellation setting that used to be the default on AirPods Pro. And it’s not only limited to the latest hardware — anyone with “second generation” AirPods Pro introduced last September can download software updates for their headphones and iPhone to enable them.

The new Adaptive mode ultimately blends chaotic street noise with the artificial quiet of active noise cancellation. Apple frames Adaptive Audio as a safety feature, so users don’t miss honks or disturbances when walking around cities. It’s subtle. You definitely feel like you’re still in a cocoon of quiet, but you don’t feel as if the whole world is muffled around you.

There’s a little chime when users turn it on, either through the Settings app when the earbuds are connected or through a shortcut by long-pressing the iPhone’s volume button in the Control Center.

Screenshot/CNBC

In practice, Adaptive Audio wasn’t perfect, but it’s an improvement over active noise canceling, which can be very isolating, and Apple’s transparency mode, which often amplifies extraneous noise (like the AirPods case clicking against car keys in my pocket). If I were to walk around cities, which I try to avoid for safety reasons, I would use Apple’s Adaptive mode.

But Bay Area BART station announcements made over a central speaker were still muffled, especially when I was listening to music, and that’s the sort of information I would like to hear. I still needed to turn off the headphones or take them out if I wanted to understand what they were saying, such as which train was coming into the station.

When walking in a dog park separated from a highway by a sound wall, Adaptive Audio let in more highway noise than active-cancellation mode, which wasn’t optimal. Later, when another person in the park was arguing about something and making a scene, I didn’t catch it by hearing it in Adaptive mode — I saw the dispute first. While many people use noise-canceling headphones to zone out those kind of disturbances, from a safety perspective, that’s something urban dwellers should be aware of in their vicinity.

Another key scenario for noise-canceling headphones is in the workplace, where workers who are headed back to the office are increasingly using them to try to simulate home office-like privacy or signal to co-workers they can’t talk.

It’s here where the Conversation Awareness feature will shine, allowing office grinders to hold quick conversations without taking out their AirPods. The feature effectively turns down your music or audio when it senses you’re taking part in a conversation. Instead of fumbling in settings to turn noise-canceling off or turn off the music, or taking the earbuds out of your ears, the software does it for you, and even amplifies the conversation a little bit.

When it works, it’s great. I had a couple conversations with my wife with the AirPods in and Conversation Awareness on. We spoke as if I didn’t have $250 of technology in my ears, and when I went back to doing what I was doing before, the volume of my music automatically went back to normal levels.

But there’s one big catch to Conversation Awareness — it doesn’t engage when someone talks to you, it only starts when you open your mouth and say something. So I found myself missing the first thing that was said in several conversations, such as when a neighbor greeted me, or what the cashier said when I approached my favorite taco truck.

At the taco truck, I found myself regretting not taking out the AirPods. I did feel like I missed a little bit of context in the short exchange, and felt rude for keeping in my headphones. I heard and understood the key bits, such as the total price, but I did not feel it was the same real-time conversation as if I was just speaking without headphones.

Also, Conversation Awareness did not turn down my music five minutes later when the cashier called out my order for pickup. Ultimately, my order was wrong too, probably because I was distracted. But it’s easy to see how people will use the feature to order a cold brew without pausing their music.

There are other little quirks, too. I like to sing along to music when I’m alone. With Conversation Awareness on, the music gets turned down, leaving you to hear your own flat singing. Once, when I was working at my computer, I laughed, and the AirPods algorithm thought I was trying to speak. I also never realized how much I mutter to myself when I’m writing.

Personalized Volume uses machine learning to adjust the overall audio level, taking into account your historical preferences — for me, louder than is healthy — and the exterior noise. I only noticed it once, when it turned down the volume after I had jacked it up.

Taking all this into account, the new AirPods features might not be a reason to rush out and get the latest model, but they clearly show that Apple’s headphones are evolving to become something more sophisticated than small speakers.

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How Elon Musk’s plan to slash government agencies and regulation may benefit his empire

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How Elon Musk’s plan to slash government agencies and regulation may benefit his empire

Elon Musk’s business empire is sprawling. It includes electric vehicle maker Tesla, social media company X, artificial intelligence startup xAI, computer interface company Neuralink, tunneling venture Boring Company and aerospace firm SpaceX. 

Some of his ventures already benefit tremendously from federal contracts. SpaceX has received more than $19 billion from contracts with the federal government, according to research from FedScout. Under a second Trump presidency, more lucrative contracts could come its way. SpaceX is on track to take in billions of dollars annually from prime contracts with the federal government for years to come, according to FedScout CEO Geoff Orazem.

Musk, who has frequently blamed the government for stifling innovation, could also push for less regulation of his businesses. Earlier this month, Musk and former Republican presidential candidate Vivek Ramaswamy were tapped by Trump to lead a government efficiency group called the Department of Government Efficiency, or DOGE.

In a recent commentary piece in the Wall Street Journal, Musk and Ramaswamy wrote that DOGE will “pursue three major kinds of reform: regulatory rescissions, administrative reductions and cost savings.” They went on to say that many existing federal regulations were never passed by Congress and should therefore be nullified, which President-elect Trump could accomplish through executive action. Musk and Ramaswamy also championed the large-scale auditing of agencies, calling out the Pentagon for failing its seventh consecutive audit. 

“The number one way Elon Musk and his companies would benefit from a Trump administration is through deregulation and defanging, you know, giving fewer resources to federal agencies tasked with oversight of him and his businesses,” says CNBC technology reporter Lora Kolodny.

To learn how else Elon Musk and his companies may benefit from having the ear of the president-elect watch the video.

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Why X’s new terms of service are driving some users to leave Elon Musk’s platform

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Why X's new terms of service are driving some users to leave Elon Musk's platform

Elon Musk attends the America First Policy Institute gala at Mar-A-Lago in Palm Beach, Florida, Nov. 14, 2024.

Carlos Barria | Reuters

X’s new terms of service, which took effect Nov. 15, are driving some users off Elon Musk’s microblogging platform. 

The new terms include expansive permissions requiring users to allow the company to use their data to train X’s artificial intelligence models while also making users liable for as much as $15,000 in damages if they use the platform too much. 

The terms are prompting some longtime users of the service, both celebrities and everyday people, to post that they are taking their content to other platforms. 

“With the recent and upcoming changes to the terms of service — and the return of volatile figures — I find myself at a crossroads, facing a direction I can no longer fully support,” actress Gabrielle Union posted on X the same day the new terms took effect, while announcing she would be leaving the platform.

“I’m going to start winding down my Twitter account,” a user with the handle @mplsFietser said in a post. “The changes to the terms of service are the final nail in the coffin for me.”

It’s unclear just how many users have left X due specifically to the company’s new terms of service, but since the start of November, many social media users have flocked to Bluesky, a microblogging startup whose origins stem from Twitter, the former name for X. Some users with new Bluesky accounts have posted that they moved to the service due to Musk and his support for President-elect Donald Trump.

Bluesky’s U.S. mobile app downloads have skyrocketed 651% since the start of November, according to estimates from Sensor Tower. In the same period, X and Meta’s Threads are up 20% and 42%, respectively. 

X and Threads have much larger monthly user bases. Although Musk said in May that X has 600 million monthly users, market intelligence firm Sensor Tower estimates X had 318 million monthly users as of October. That same month, Meta said Threads had nearly 275 million monthly users. Bluesky told CNBC on Thursday it had reached 21 million total users this week.

Here are some of the noteworthy changes in X’s new service terms and how they compare with those of rivals Bluesky and Threads.

Artificial intelligence training

X has come under heightened scrutiny because of its new terms, which say that any content on the service can be used royalty-free to train the company’s artificial intelligence large language models, including its Grok chatbot.

“You agree that this license includes the right for us to (i) provide, promote, and improve the Services, including, for example, for use with and training of our machine learning and artificial intelligence models, whether generative or another type,” X’s terms say.

Additionally, any “user interactions, inputs and results” shared with Grok can be used for what it calls “training and fine-tuning purposes,” according to the Grok section of the X app and website. This specific function, though, can be turned off manually. 

X’s terms do not specify whether users’ private messages can be used to train its AI models, and the company did not respond to a request for comment.

“You should only provide Content that you are comfortable sharing with others,” read a portion of X’s terms of service agreement.

Though X’s new terms may be expansive, Meta’s policies aren’t that different. 

The maker of Threads uses “information shared on Meta’s Products and services” to get its training data, according to the company’s Privacy Center. This includes “posts or photos and their captions.” There is also no direct way for users outside of the European Union to opt out of Meta’s AI training. Meta keeps training data “for as long as we need it on a case-by-case basis to ensure an AI model is operating appropriately, safely and efficiently,” according to its Privacy Center. 

Under Meta’s policy, private messages with friends or family aren’t used to train AI unless one of the users in a chat chooses to share it with the models, which can include Meta AI and AI Studio.

Bluesky, which has seen a user growth surge since Election Day, doesn’t do any generative AI training. 

“We do not use any of your content to train generative AI, and have no intention of doing so,” Bluesky said in a post on its platform Friday, confirming the same to CNBC as well.

Liquidated damages

Bluesky CEO: Our platform is 'radically different' from anything else in social media

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The Pentagon’s battle inside the U.S. for control of a new Cyber Force

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The Pentagon's battle inside the U.S. for control of a new Cyber Force

A recent Chinese cyber-espionage attack inside the nation’s major telecom networks that may have reached as high as the communications of President-elect Donald Trump and Vice President-elect J.D. Vance was designated this week by one U.S. senator as “far and away the most serious telecom hack in our history.”

The U.S. has yet to figure out the full scope of what China accomplished, and whether or not its spies are still inside U.S. communication networks.

“The barn door is still wide open, or mostly open,” Senator Mark Warner of Virginia and chairman of the Senate Intelligence Committee told the New York Times on Thursday.

The revelations highlight the rising cyberthreats tied to geopolitics and nation-state actor rivals of the U.S., but inside the federal government, there’s disagreement on how to fight back, with some advocates calling for the creation of an independent federal U.S. Cyber Force. In September, the Department of Defense formally appealed to Congress, urging lawmakers to reject that approach.

Among one of the most prominent voices advocating for the new branch is the Foundation for Defense of Democracies, a national security think tank, but the issue extends far beyond any single group. In June, defense committees in both the House and Senate approved measures calling for independent evaluations of the feasibility to create a separate cyber branch, as part of the annual defense policy deliberations.

Drawing on insights from more than 75 active-duty and retired military officers experienced in cyber operations, the FDD’s 40-page report highlights what it says are chronic structural issues within the U.S. Cyber Command (CYBERCOM), including fragmented recruitment and training practices across the Army, Navy, Air Force, and Marines.

“America’s cyber force generation system is clearly broken,” the FDD wrote, citing comments made in 2023 by then-leader of U.S. Cyber Command, Army General Paul Nakasone, who took over the role in 2018 and described current U.S. military cyber organization as unsustainable: “All options are on the table, except the status quo,” Nakasone had said.

Concern with Congress and a changing White House

The FDD analysis points to “deep concerns” that have existed within Congress for a decade — among members of both parties — about the military being able to staff up to successfully defend cyberspace. Talent shortages, inconsistent training, and misaligned missions, are undermining CYBERCOM’s capacity to respond effectively to complex cyber threats, it says. Creating a dedicated branch, proponents argue, would better position the U.S. in cyberspace. The Pentagon, however, warns that such a move could disrupt coordination, increase fragmentation, and ultimately weaken U.S. cyber readiness.

As the Pentagon doubles down on its resistance to establishment of a separate U.S. Cyber Force, the incoming Trump administration could play a significant role in shaping whether America leans toward a centralized cyber strategy or reinforces the current integrated framework that emphasizes cross-branch coordination.

Known for his assertive national security measures, Trump’s 2018 National Cyber Strategy emphasized embedding cyber capabilities across all elements of national power and focusing on cross-departmental coordination and public-private partnerships rather than creating a standalone cyber entity. At that time, the Trump’s administration emphasized centralizing civilian cybersecurity efforts under the Department of Homeland Security while tasking the Department of Defense with addressing more complex, defense-specific cyber threats. Trump’s pick for Secretary of Homeland Security, South Dakota Governor Kristi Noem, has talked up her, and her state’s, focus on cybersecurity.

Former Trump officials believe that a second Trump administration will take an aggressive stance on national security, fill gaps at the Energy Department, and reduce regulatory burdens on the private sector. They anticipate a stronger focus on offensive cyber operations, tailored threat vulnerability protection, and greater coordination between state and local governments. Changes will be coming at the top of the Cybersecurity and Infrastructure Security Agency, which was created during Trump’s first term and where current director Jen Easterly has announced she will leave once Trump is inaugurated.

Cyber Command 2.0 and the U.S. military

John Cohen, executive director of the Program for Countering Hybrid Threats at the Center for Internet Security, is among those who share the Pentagon’s concerns. “We can no longer afford to operate in stovepipes,” Cohen said, warning that a separate cyber branch could worsen existing silos and further isolate cyber operations from other critical military efforts.

Cohen emphasized that adversaries like China and Russia employ cyber tactics as part of broader, integrated strategies that include economic, physical, and psychological components. To counter such threats, he argued, the U.S. needs a cohesive approach across its military branches. “Confronting that requires our military to adapt to the changing battlespace in a consistent way,” he said.

In 2018, CYBERCOM certified its Cyber Mission Force teams as fully staffed, but concerns have been expressed by the FDD and others that personnel were shifted between teams to meet staffing goals — a move they say masked deeper structural problems. Nakasone has called for a CYBERCOM 2.0, saying in comments early this year “How do we think about training differently? How do we think about personnel differently?” and adding that a major issue has been the approach to military staffing within the command.

Austin Berglas, a former head of the FBI’s cyber program in New York who worked on consolidation efforts inside the Bureau, believes a separate cyber force could enhance U.S. capabilities by centralizing resources and priorities. “When I first took over the [FBI] cyber program … the assets were scattered,” said Berglas, who is now the global head of professional services at supply chain cyber defense company BlueVoyant. Centralization brought focus and efficiency to the FBI’s cyber efforts, he said, and it’s a model he believes would benefit the military’s cyber efforts as well. “Cyber is a different beast,” Berglas said, emphasizing the need for specialized training, advancement, and resource allocation that isn’t diluted by competing military priorities.

Berglas also pointed to the ongoing “cyber arms race” with adversaries like China, Russia, Iran, and North Korea. He warned that without a dedicated force, the U.S. risks falling behind as these nations expand their offensive cyber capabilities and exploit vulnerabilities across critical infrastructure.

Nakasone said in his comments earlier this year that a lot has changed since 2013 when U.S. Cyber Command began building out its Cyber Mission Force to combat issues like counterterrorism and financial cybercrime coming from Iran. “Completely different world in which we live in today,” he said, citing the threats from China and Russia.

Brandon Wales, a former executive director of the CISA, said there is the need to bolster U.S. cyber capabilities, but he cautions against major structural changes during a period of heightened global threats.

“A reorganization of this scale is obviously going to be disruptive and will take time,” said Wales, who is now vice president of cybersecurity strategy at SentinelOne.

He cited China’s preparations for a potential conflict over Taiwan as a reason the U.S. military needs to maintain readiness. Rather than creating a new branch, Wales supports initiatives like Cyber Command 2.0 and its aim to enhance coordination and capabilities within the existing structure. “Large reorganizations should always be the last resort because of how disruptive they are,” he said.

Wales says it’s important to ensure any structural changes do not undermine integration across military branches and recognize that coordination across existing branches is critical to addressing the complex, multidomain threats posed by U.S. adversaries. “You should not always assume that centralization solves all of your problems,” he said. “We need to enhance our capabilities, both defensively and offensively. This isn’t about one solution; it’s about ensuring we can quickly see, stop, disrupt, and prevent threats from hitting our critical infrastructure and systems,” he added.

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