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The question “What is a thought?” is no longer strictly a philosophical one. Like anything else measurable, our thoughts are subject to increasingly technical answers, with data captured by tracking brainwaves. That breakthrough also means the data is commodifiable, and captured brain data is already being bought and sold by companies in the wearable consumer technologies space, with few protections in place for users. 

In response, Colorado recently passed a first-in-the-nation privacy act aimed at protecting these rights. The act falls under the existing “Colorado Consumer Protection Act,” which aims to protect “the privacy of individuals’ personal data by establishing certain requirements for entities that process personal data [and] includes additional protections for sensitive data.” 

The key language in the Colorado act is the expansion of the term “sensitive data” to include “biological data” — inclusive of numerous biological, genetic, biochemical, physiological, and neural properties.

Elon Musk’s Neuralink is the most famous example of how technology is being embedded with the human mind, though it isn’t alone in the space, with Paradromics emerging as a close competitor, alongside devices that have returned speech to stroke victims and helped amputees move prosthetic limbs with their minds. All of these products are medical devices that require implantation, and are protected under HIPAA’s strict privacy requirements. The Colorado law is focused on the rapidly growing consumer technology sphere and devices that don’t require medical procedures, have no analogous protections, and can be bought and used without medical oversight of any kind. 

Inside Paradromics, the Neuralink competitor hoping to commercialize brain implants before the end of the decade

There are dozens of companies making products that are wearable technologies capturing brain waves (aka neura data). On Amazon alone, there are pages of products, from sleep masks designed to optimize deep sleep or promote lucid dreaming, to headbands promising to promote focus, and biofeedback headsets that will take your meditation session to the next level. These products, by design and necessity, capture neural data through use of small electrodes that produce readings of brain activity, with some deploying electric impulses to impact brain activity. 

The laws in place for the handling all of that brain data are virtually non-existent.   

“We have entered the world of sci-fi here,” said lead sponsor of the Colorado bill, Representative Cathy Kipp. “As with any advances in science, there must be guardrails.”

‘ChatGPT-moment’ for consumer brain tech

A recent study by The NeuroRights Foundation found that of thirty companies examined who are making wearable technology that is capable of capturing brainwaves, twenty-nine “provide no meaningful limitations to this access.” 

“This revolution in consumer neurotechnology has been centered on the increasing ability to capture and interpret brainwaves,” said Dr. Sean Pauzauskie, medical director at The NeuroRights Foundation. Devices using electroencephalography, a tech readily available to consumers, is “a multibillion-dollar market that is set to double over the next five or so years,” he said. “Over the next two to five years it is not implausible that neurotechnology might see a ChatGPT-moment.”

How much data can be collected depends upon several factors, but the technology is rapidly advancing, and could lead to an exponential increase in applications, with the tech increasingly incorporating AI. Apple has already filed patents for brain-sensing AirPods.

“Brain data are too important to be left unregulated. They reflect the inner workings of our minds,” said Rafael Yusuf, professor of biological sciences and director, NeuroTechnology Center, Columbia University, as well as Chairman of the NeuroRights Foundation and leading figure in the neutotech ethics organization Morningside Group. “The brain is not just another organ of the body,” he added. “We need to engage private actors to ensure they adopt a responsible innovation framework, as the brain is the sanctuary of our minds.”

Pauzauskie said the value to companies comes in the interpretation or decoding of the brain signals collected by wearable technologies. As a hypothetical example, he said, “if you were wearing brain-sensing earbuds, not only would Nike know that you browsed for runners’ shoes from your browsing history, but could now know how interested you were as you browsed.”  

A wave of biological privacy legislation may be needed

The concern targeted by the Colorado law may lead to a wave of similar legislation, with heightened attention to the mingling of rapidly-advancing technologies and the commodification of user data. In the past, consumer rights and protections have lagged behind innovation.

“The best and most recent tech/privacy analogies might be the internet and consumer genetic revolutions, which largely went unchecked,”  Pauzauskie said.

A similar arc could follow unchecked advancements in the collection and commodification of consumer brain data. Hacking, corporate profit motives, ever-changing privacy agreements for users, and narrow to no laws covering the data, are all major risks, Pauzauskie said. Under the Colorado Privacy Act, brain data is extended the same privacy rights as fingerprints.

According to Professor Farinaz Koushanfar and Associate Professor Duygu Kuzum of the department of Electrical and Computer Engineering at UC San Diego, it is still too early to understand the limitations of the technology, as well as the depths of the potentially intrusive data collection.

Tracking neural data could mean tracking a broad range of cognitive processes and functions, including thoughts, intentions, and memories, they wrote in a joint statement sent via email. At one extreme, tracking neural data might mean accessing medical information directly. 

The broad range of possibilities is itself an issue. “There are too many unknowns still in this field and that’s worrisome,” they wrote.

If these laws become widespread, companies may have no choice but to overhaul their current organizational structure, according to Koushanfar and Kuzum. There may be a need for establishing new compliance officers, and implementing methods such as risk assessment, third-party auditing and anonymization as mechanisms for establishing requirements for the entities involved.

On the consumer side, the Colorado law and any subsequent efforts represent important steps toward better educating users, as well as giving them the required tools to check and exercise their rights should they be infringed. 

“The privacy law [in Colorado] regarding neurotechnology might stand as a rare exception, where rights and regulations precede any widespread misuse or abuse of consumer data,” Pauzauskie said.

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Microsoft AI chief Suleyman sees advantage in building models ‘3 or 6 months behind’

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Microsoft AI chief Suleyman sees advantage in building models ‘3 or 6 months behind’

Microsoft owns lots of Nvidia graphics processing units, but it isn’t using them to develop state-of-the-art artificial intelligence models.

There are good reasons for that position, Mustafa Suleyman, the company’s CEO of AI, told CNBC’s Steve Kovach in an interview on Friday. Waiting to build models that are “three or six months behind” offers several advantages, including lower costs and the ability to concentrate on specific use cases, Suleyman said.

It’s “cheaper to give a specific answer once you’ve waited for the first three or six months for the frontier to go first. We call that off-frontier,” he said. “That’s actually our strategy, is to really play a very tight second, given the capital-intensiveness of these models.”

Suleyman made a name for himself as a co-founder of DeepMind, the AI lab that Google bought in 2014, reportedly for $400 million to $650 million. Suleyman arrived at Microsoft last year alongside other employees of the startup Inflection, where he had been CEO.

More than ever, Microsoft counts on relationships with other companies to grow.

It gets AI models from San Francisco startup OpenAI and supplemental computing power from newly public CoreWeave in New Jersey. Microsoft has repeatedly enriched Bing, Windows and other products with OpenAI’s latest systems for writing human-like language and generating images.

Microsoft’s Copilot will gain “memory” to retain key facts about people who repeatedly use the assistant, Suleyman said Friday at an event in Microsoft’s Redmond, Washington, headquarters to commemorate the company’s 50th birthday. That feature came first to OpenAI’s ChatGPT, which has 500 million weekly users.

Through ChatGPT, people can access top-flight large language models such as the o1 reasoning model that takes time before spitting out an answer. OpenAI introduced that capability in September — only weeks later did Microsoft bring a similar capability called Think Deeper to Copilot.

Microsoft occasionally releases open-source small-language models that can run on PCs. They don’t require powerful server GPUs, making them different from OpenAI’s o1.

OpenAI and Microsoft have held a tight relationship shortly after the startup launched its ChatGPT chatbot in late 2022, effectively kicking off the generative AI race. In total, Microsoft has invested $13.75 billion in the startup, but more recently, fissures in the relationship between the two companies have begun to show.

Microsoft added OpenAI to its list of competitors in July 2024, and OpenAI in January announced that it was working with rival cloud provider Oracle on the $500 billion Stargate project. That came after years of OpenAI exclusively relying on Microsoft’s Azure cloud. Despite OpenAI partnering with Oracle, Microsoft in a blog post announced that the startup had “recently made a new, large Azure commitment.”

“Look, it’s absolutely mission-critical that long-term, we are able to do AI self-sufficiently at Microsoft,” Suleyman said. “At the same time, I think about these things over five and 10 year periods. You know, until 2030 at least, we are deeply partnered with OpenAI, who have [had an] enormously successful relationship for us.

Microsoft is focused on building its own AI internally, but the company is not pushing itself to build the most cutting-edge models, Suleyman said.

“We have an incredibly strong AI team, huge amounts of compute, and it’s very important to us that, you know, maybe we don’t develop the absolute frontier, the best model in the world first,” he said. “That’s very, very expensive to do and unnecessary to cause that duplication.”

WATCH: Microsoft Copilot beginning of a seismic shift in AI integration, says Microsoft AI CEO Suleyman

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Former Microsoft CEO Steve Ballmer says, as shareholder, tariffs are ‘not good’

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Former Microsoft CEO Steve Ballmer says, as shareholder, tariffs are 'not good'

President Trump’s new tariffs on goods that the U.S. imports from over 100 countries will have an effect on consumers, former Microsoft CEO Steve Ballmer told CNBC on Friday. Investors will feel the pain, too.

Microsoft’s stock dropped almost 6% in the past two days, as the Nasdaq wrapped up its worst week in five years.

“As a Microsoft shareholder, this kind of thing is not good,” Ballmer said, in an interview with Andrew Ross Sorkin that was tied to Microsoft’s 50th anniversary celebration. “It creates opportunity to be a serious, long-term player.”

Ballmer was sandwiched in between Microsoft co-founder Bill Gates and current CEO Satya Nadella for the interview.

“I took just enough economics in college — that tariffs are actually going to bring some turmoil,” said Ballmer, who was succeeded by Nadella in 2014. Gates, Microsoft’s first CEO, convinced Ballmer to join the company in 1980.

Gates, Ballmer and Nadella attended proceedings at Microsoft’s Redmond, Washington, campus on Friday to celebrate its first half-century.

Between the tariffs and weak quarterly revenue guidance announced in January, Microsoft’s stock is on track for its fifth straight month of declines, which would be the worst stretch since 2009. But the company remains a leader in the PC operating system and productivity software markets, and its partnership with startup OpenAI has led to gains in cloud computing.

“I think that disruption is very hard on people, and so the decision to do something for which disruption was inevitable, that needs a lot of popular support, and nobody could game theorize exactly who is going to do what in response,” Ballmer said, regarding the tariffs. “So, I think citizens really like stability a lot. And I hope people — individuals who will feel this, because people are feeling it, not just the stock market, people are going to feel it.”

Ballmer, who owns the Los Angeles Clippers, is among Microsoft’s biggest fans. He said he’s the company’s largest investor. In 2014, shortly after he bought the basketball team for $2 billion, he held over 333 million shares of the stock, according to a regulatory filing.

“I’m not going to probably have 50 more years on the planet,” he said. “But whatever minutes I have, I’m gonna be a large Microsoft shareholder.” He said there’s a bright future for computing, storage and intelligence. Microsoft launched the first Azure services while Ballmer was CEO.

Earlier this week Bloomberg reported that Microsoft, which pledged to spend $80 billion on AI-enabled data center infrastructure in the current fiscal year, has stopped discussions or pushed back the opening of facilities in the U.S. and abroad.

JPMorgan Chase’s chief economist, Bruce Kasman, said in a Thursday note that the chance of a global recession will be 60% if Trump’s tariffs kick in as described. His previous estimate was 40%.

“Fifty years from now, or 25 years from now, what is the one thing you can be guaranteed of, is the world needs more compute,” Nadella said. “So I want to keep those two thoughts and then take one step at a time, and then whatever are the geopolitical or economic shifts, we’ll adjust to it.”

Gates, who along with co-founder Paul Allen, sought to build a software company rather than sell both software and hardware, said he wasn’t sure what the economic effects of the tariffs will be. Today, most of Microsoft’s revenue comes from software. It also sells Surface PCs and Xbox consoles.

“So far, it’s just on goods, but you know, will it eventually be on services? Who knows?” said Gates, who reportedly donated around $50 million to a nonprofit that supported Democratic nominee Kamala Harris’ losing campaign.

— CNBC’s Alex Harring contributed to this report.

WATCH: There will be many LLM winners, says infrastructure investor Morrison

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AppLovin can offer TikTok ‘much stronger bid than others,’ CEO says

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AppLovin can offer TikTok 'much stronger bid than others,' CEO says

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AppLovin CEO Adam Foroughi provided more clarity on the ad-tech company’s late-stage effort to acquire TikTok, calling his offer a “much stronger bid than others” on CNBC’s The Exchange Friday afternoon.

Foroughi said the company is proposing a merger between AppLovin and the entire global business of TikTok, characterizing the deal as a “partnership” where the Chinese could participate in the upside while AppLovin would run the app.

“If you pair our algorithm with the TikTok audience, the expansion on that platform for dollars spent will be through the roof,” Foroughi said.

The news comes as President Trump announced he would extend the deadline a second time for TikTok’s Chinese-owned parent company ByteDance to sell the U.S. subsidiary of TikTok to an American buyer or face an effective ban on U.S. app stores. The new deadline is now in June, which, as Foroughi described, “buys more time to put the pieces together” on AppLovin’s bid. 

“The president’s a great dealmaker — we’re proposing, essentially an enhancement to the deal that they’ve been working on, but a bigger version of all the deals contemplated,” he added.

AppLovin faces a crowded field of other interested U.S. backers, including Amazon, Oracle, billionaire Frank McCourt and his Project Liberty consortium, and numerous private equity firms. Some proposals reportedly structure the deal to give a U.S. buyer 50% ownership of the company, rather than a complete acquisition. The Chinese government will still need to approve the deal, and AppLovin’s interest in purchasing TikTok in “all markets outside of China” is “preliminary,” according to an April 3 SEC filing.

Correction: A prior version of this story incorrectly characterized China’s ongoing role in TikTok should AppLovin acquire the app.

WATCH: AppLovin CEO Adam Foroughi on its bid to buy TikTok

AppLovin CEO Adam Foroughi on its bid to buy TikTok

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