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Utah Gov. Spencer Cox on Wednesday signed a bill that requires Apple and Google’s mobile app stores to verify user ages and require parental permission for those under 18 to use certain apps, the governor’s spokesperson told CNBC.

The law is the first of its kind in the nation and represents a significant shift in how user ages are verified online, and says it’s the responsibility of mobile app stores to verify ages — putting the onus on Apple and Google, instead of individual apps like Instagram, Snapchat and X, to do age checks.

The App Store Accountability Act, or S.B. 142, could also kick off a wave of other states, including South Carolina and California, passing similar legislation

The law is designed to protect children, who may not understand apps’ terms of services and, therefore, can’t agree to them, said Todd Weiler, a Republican state senator and the bill’s sponsor.

“For the past decade or longer, Instagram has rated itself as friendly for 12 year olds,” Weiler said at a state senate committee hearing in January. “It’s not.”

Apple and Google will need to request age verification checks when someone makes a new account in the state. That will most likely have to be done using credit cards, according to Weiler. If someone under 18 opens an app store account, Apple or Google will have to link it to a parent’s account or request additional documentation. Parents will have to consent to in-app purchases.

Neither company immediately returned a request for comment on Wednesday.

Meta, X and Snap said on Wednesday they applauded Cox and Utah for passing the bill, and encouraged other states to consider similar approaches.

“Parents want a one-stop-shop to oversee and approve the many apps their teens want to download, and Utah has led the way in centralizing it within a device’s app store,” the companies said in a joint statement. “This approach spares users from repeatedly submitting personal information to countless individual apps and online services.”

The Utah law is slated to take effect on May 7, but it is expected to be challenged in a legal fight over its validity. The state passed a similar age-verification law related to pornography in 2023, and arguments whether that law violates free speech were heard by the Supreme Court in January.

Utah’s adoption of the law is also the latest shot in a long-running skirmish between Facebook-parent Meta and Apple.

Meta, which supported the bill, argues that app stores are the best place to do age verification on minors, instead of on individual apps. Meta has recently shifted its policy strategy to seek strategic advantages for itself and shift antitrust scrutiny onto Apple, CNBC reported last month

Apple says it makes the most sense for apps themselves to do age verification, and that due to privacy reasons, it doesn’t want to collect the data needed for age verification.

The “right place to address the dangers of age-restricted content online is the limited set of websites and apps that host that kind of content,” according to a paper Apple posted on its website last month.

Utah’s bill raises privacy and safety risks, Google said in a blog post on March 12.

“There are a variety of fast-moving legislative proposals being pushed by Meta and other companies in an effort to offload their own responsibilities to keep kids safe to app stores,” Google Director of Public Policy Kareem Ghanem wrote. “These proposals introduce new risks to the privacy of minors, without actually addressing the harms that are inspiring lawmakers to act.”

The push for age verification comes after Meta CEO Mark Zuckerberg, X CEO Lina Yaccarino, Snap CEO Evan Spiegel and other social media CEOs appeared before Congress in January 2024 for a hearing focused on online child safety. 

There, lawmakers criticized the companies, saying they failed to stem online child sexual exploitation on social media apps and needed to do more. Zuckerberg appeared rattled during the hearing after senators told him he had “blood on your hands.” However, the legislation that came out of the meeting, the Kids Online Safety Act, failed to advance in Congress late last year.

Meta has also been hit with a number of lawsuits filed by states relating to the well-being of children on Facebook and Instagram.

— CNBC’s Jonathan Vanian contributed to this report.

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Amazon resumes drone deliveries after two-month pause

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Amazon resumes drone deliveries after two-month pause

Amazon has restarted drone deliveries in two states after a months-long pause, the company confirmed.

In January, Amazon halted Prime Air deliveries in College Station, Texas, and Tolleson, Arizona, the two U.S. markets where it’s testing the service, as the company rolled out a software update to its drone fleet.

Amazon discovered an abnormality with the drone’s altitude sensor, caused by dust in the air, that could have caused its system to produce an inaccurate reading of its position relative to the ground, the company said. Amazon “never experienced an actual safety issue,” but said it opted to suspend deliveries while it corrected the issue.

The company brought drone deliveries back online last week after it completed the software update and received approval from the Federal Aviation Administration, Amazon spokesperson Av Zammit said in a statement.

“Safety underscores everything we do at Prime Air, which is why we paused our operations to conduct a software update on the MK30 drone,” Zammit said. “The updates are now complete and were approved by the FAA, allowing us to resume deliveries.”

An FAA spokesperson didn’t immediately provide a comment.

Zammit said Prime Air has seen “unprecedented levels of demand” since it resumed service. David Carbon, an executive who oversees Amazon’s drone program, wrote in a LinkedIn post last week that the company dropped a bottle of ZzzQuil sleep medicine at an Arizona customer’s home in “31 minutes and 30 seconds.” Carbon didn’t say how far the drone had to fly and Zammit declined to provide details.

For over a decade, Amazon has been working to bring to life founder Jeff Bezos’ vision of drones whizzing toothpaste, books and batteries to customers’ doorsteps in 30 minutes or less. But progress has been slow, as Prime Air has only been made available in the U.S. in College Station and Tolleson. A test site in Lockeford, California, was shuttered last April. The program was also hit with layoffs in 2023 as Amazon CEO Andy Jassy cut costs across the company.

Amazon has set a goal to deliver 500 million packages by drone per year by the end of the decade. The company last year notched a critical regulatory milestone that could enable it to accelerate deliveries. It’s eyed international expansion to the U.K., and recently welcomed Transportation Secretary Sean Duffy in a visit to a Prime Air facility.

The company also introduced a new version of its delivery drone, called the MK30, which is designed to be quieter than previous models and can fly in light rain.

Customers in College Station, a quiet suburban town that’s about 100 miles northwest of Houston, had previously complained about the drones’ noise levels. After rolling out the MK30, the company is also taking steps to relocate its drone hub farther away from residents’ homes later this year.

Before Amazon suspended drone deliveries, the MK30 crashed in two separate incidents during test flights at the company’s facility in Pendleton, Oregon. Last December, a software issue caused two drones to crash, according to Bloomberg. And in September, a pilot mistakenly caused a “mid-air collision” between two drones after he tested how the MK30 would perform when faced with a failed propeller, according to a federal crash report.

Another crash occurred on Feb. 21 during tests at the Pendleton site, which resulted in a drone sustaining substantial damage, according to a report compiled by the National Transportation Safety Board.

Amazon said the crashes were unrelated to its decision to halt drone operations. The company has said these kinds of incidents, which have also occurred with other models in previous years, are part of the testing process, as it pushes drone systems “up to the limits and beyond.”

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Trump’s tariffs could mean big business for supply chain software startup LightSource

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Trump's tariffs could mean big business for supply chain software startup LightSource

LightSource cofounders: CTO Idan Mintz and CEO Spencer Penn

Courtesy: LightSource

With President Donald Trump set to impose sweeping tariffs on a wide swath of U.S. trading partners this week, corporate America is awash in uncertainty.

LightSource, a San Francisco startup whose software helps companies manage their procurement process, costs and vendor relationships, didn’t know what the president’s tariffs plan would look like before raising its first funding round. But the timing didn’t hurt.

LightSource has just closed a $33 million financing, led by Bain Capital Ventures and Lightspeed Venture Partners, with participation from J2 Ventures.

“Tariffs and trade winds are shifting so fast, it’s enough to make your head spin,” said Ajay Agrawal, a partner at Bain and now a board member at LightSource. “For a company with hundreds or thousands of different parts and suppliers — even just understanding what the impact will be on their whole enterprise is unbelievable.”

President Trump’s plans to slap “reciprocal tariffs” on all countries with duties on U.S. goods is set to be announced on Wednesday. Concerns surrounding the impact of those moves pushed the Nasdaq down more than 10% in the first quarter, the index’s biggest drop for any period since 2022.

Trump has already said he would impose 25% tariffs on “all cars that are not made in the United States.” Autos is a market that co-founder and CEO Spencer Penn knows well.

LightSource was started in 2021 by Penn and CTO Idan Mintz, while the two were working in different parts of Alphabet. Penn was at robotaxi unit Waymo, and Mintz was in the Google X “moonshot factory.”

Prior to Waymo, Penn worked at Tesla when the electric vehicle maker was starting to mass produce its popular Model 3 sedans. He said that finance, sourcing and engineering professionals have to work together to find, or sometimes custom order, high-quality parts. They also have to maintain their best supplier relationships while evaluating new potential vendors and negotiating fair prices.

Often these teams rely on “hundreds of disparate processes and information that’s stuck in thousands of emails, spreadsheets and randomly formatted invoices and contracts,” Penn said.

LightSource, which has about 30 employees, connects a company’s procurement-related information sources and systems to streamline that complex work. The aim is to speed up a company’s procurement process, saving the business time, money and pain while working with suppliers.

Mintz describes LightSource’s offering as a kind of “operating system” for procurement. Penn says it has the potential to do for procurement what Salesforce did for customer relationships.

Whether it’s a global pandemic, a natural disaster cutting off a shipping route, or a major shift in tariffs and trade policy, Mintz said, any supply chain disruption can make a huge difference to a company’s profit margins and its ability to deliver a product on time.

Current customers include consumer packaged goods companies, aerospace ventures, e-commerce companies and automotive giants.

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AI chipmaker Cerebras announces CFIUS clearance, a key step toward IPO

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AI chipmaker Cerebras announces CFIUS clearance, a key step toward IPO

Toronto , Canada – 20 June 2024; Andrew Feldman, co-founder and CEO of Cerebras Systems, speaks at the Collision conference in Toronto on June 20, 2024.

Ramsey Cardy | Sportsfile | Collision | Getty Images

Artificial intelligence chip developer Cerebras said Monday that it has obtained clearance from a U.S. committee to sell shares to Group 42, a Microsoft-backed AI company based in the United Arab Emirates.

That clearance came from the Committee on Foreign Investment in the United States, or CFIUS, and it’s a key step for Cerebras in its effort to go public. Cerebras competes with Nvidia, whose graphics processing units are the industry’s choice for training and running AI models, but most of its revenue comes from a customer called Group 42.

Cerebras filed to go public in September but has not provided details on timing or size for the initial public offering. The regulatory overhang was tied to the company’s relationship with Group 42, which was the source of 87% of Cerebras’ revenue in the first half of 2024, made the IPO look uncertain.

“We thank @POTUS for making America the best place in the world to invest in cutting-edge #AI technology,” Andrew Feldman, Cerebras’ co-founder and CEO, wrote in a Monday LinkedIn post. “We thank G42’s leadership and the UAE’s leadership for their ongoing partnership and commitment to supporting U.S headquartered AI companies.”

Lawmakers have previously worried about Group 42’s connections to China. Last year Mike Gallagher, then a Republican member of Congress from Wisconsin, said in a statement that he was “glad to see G42 reduce its investment exposure to Chinese companies.” Microsoft later announced a $1.5 billion investment in Group 42.

Both Cerebras and Group 42 had given voluntary notice to CFIUS about the sale of voting shares, according to the Sunnyvale, California-based company’s IPO prospectus. Group 42 had agreed to buy $335 million worth of Cerebras shares by April 15, according to the prospectus. The two companies later changed the agreement to say Group 42 would be buying non-voting shares, prompting them to withdraw their notice, because they said they did not believe CFIUS had jurisdiction over sales of non-voting securities.

CFIUS did not immediately respond to a request for comment.

Just a handful of technology companies have gone public since 2021, as higher interest rates made unprofitable companies less desirable. But in recent months, Cerebras and a few technology-related companies have taken steps toward IPOs, and last week, AI infrastructure provider CoreWeave went public.

CoreWeave shares fell 7% on Monday, its second day of trading.

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