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People walk near the Google offices on July 04, 2022 in New York City.

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Google‘s parent company Alphabet has stacked its legal team with former Department of Justice employees as it fights two separate antitrust lawsuits from the agency, public profiles show.

Former DOJ employees make up both its in-house team and members of outside counsel firms it employs. The company has hired three former DOJ officials into regulatory roles since May 2022, and one before that in 2021, according to public information including social media profiles. Google also uses four different outside counsel firms loaded with nearly 20 former DOJ officials, many of whom worked in the Antitrust Division at various times.

Such hiring to its internal regulatory team is a reflection of the intense scrutiny Google is facing from governments around the world. It can be a signal that a company anticipates dealing with regulatory challenges in years to come, even if it doesn’t know exactly what form it’ll take yet, according to two former government officials.

“When companies find themselves under intense scrutiny from regulatory authorities, antitrust law or otherwise, they make moves like this,” said Bill Kovacic, a former Federal Trade Commission chair who now teaches antitrust law at George Washington University.

Google now faces two antitrust challenges from the DOJ, both to its search and ad tech businesses, and additional challenges from a slew of state attorneys general. Regulators around the world, including in Europe and Australia, have also presented policy and enforcement hurdles.

Google’s hiring is not surprising for a company under such a microscope, according to Doug Melamed, a former acting assistant attorney general at the DOJ Antitrust Division who’s now a scholar-in-residence at Stanford Law School.

The company had already been fighting one complex antitrust case that would likely require a team of 10 to 15 lawyers alone, according to Melamed, when the Department brought its second antitrust challenge against the company earlier this year.

“They don’t have the capacity to handle a case like that just sitting idle,” Melamed said. “They’ve got to now think about well, what outside lawyers are available that have to have the time and expertise to handle this case? And then, do I have the in-house capability to support it and supervise it?”

The added threat of new legislation targeting Google’s business, and that of other tech firms, looms. In the near term, it appears that a massive lobbying campaign by the industry has successfully delayed the most disruptive reforms. But the possibility of renewed energy around that legislation still hangs over the industry, and a company like Google “can take nothing for granted now,” Kovacic said, adding that’s likely a reason for the company to build out its regulatory forces.

“New entrants and new innovations are driving competition and delivering value for America’s consumers, publishers, and merchants,” a Google spokesperson said in a statement for this story. “We’re proud of our services and we look forward to making our case in court.”

Revolving door hiring

Alphabet now has at least five former DOJ staffers on its legal team, including Google’s director of competition Kevin Yingling, who’s been with the company for more than a decade and worked as a trial attorney at the Department of Justice from 2000 to 2005, according to his LinkedIn.

The company hired Kate Smith as counsel for Alphabet’s regulatory response, investigations and strategy unit in February 2021, according to LinkedIn. Smith was a trial attorney in the DOJ’s Civil Frauds division from September 2015 until January 2021.

In May 2022, according to LinkedIn, Alphabet hired Mike Kass, a former trial attorney in the DOJ’s Civil Fraud section, as its regulatory and litigation counsel for products.

A month later, the company hired Seema Mittal Roper as counsel on its regulatory response team. Mittal Roper worked as an assistant U.S. attorney for the DOJ in Maryland from 2013 to 2018, according to LinkedIn.

Most recently, the company hired Jack Mellyn as strategy counsel on its regulatory team. Mellyn was previously an attorney advisor and then acting assistant chief in the DOJ’s competition policy and advocacy section, according to a previously available social media profile.

It’s not clear which employees are working on the specific matters before the DOJ and Kass’ role appears focused outside of antitrust. It’s likely these employees never worked on Google-related matters they’re dealing with now during their time in government, given their dates and areas of previous employment, as well as federal ethics rules that bar certain conflicts.

But experts say this kind of hiring, which is common among businesses faced with regulatory scrutiny, can still be beneficial to a company because of the unique insight, touch or credibility that an ex-government attorney might hold when it comes to their former colleagues.

“There are lots of lawyers out there. But only alumni of an office really understand how that office works,” said Jeff Hauser, executive director of the Revolving Door Project, which tracks the business ties of executive branch officials. “That means its strengths and weaknesses, that means the tendencies of people in that office. And they can therefore give much more concrete intelligence and better-informed advice to their client.”

Hauser said this may mean the lawyers could advise a client or employer to flood the agency with information rather than comply with a certain document request, knowing that the enforcers don’t have the capacity to deal with it. Or, they might suggest strategies to approach a deposition, knowing the government staffer conducting it.

A lawyer who’s had experience in the government doesn’t bring information about the specific matters of the companies involved, but rather brings a general perspective about how the agency is approaching these kinds of problems,” Melamed said.

Enforcement agencies also often have to trust whether they believe the target of an investigation has complied with its requests. Hauser said the agencies may be more inclined to take the word of their former colleagues, compared to a more removed attorney.

A recent event shows what can happen when that trust is broken. The DOJ last month accused Google of destroying chat messages it should have kept under a litigation hold related to the investigation. The DOJ made the accusation in a legal filing after Epic Games raised the concern in its own antitrust litigation against Google.

A Google spokesperson said in a statement at the time of the DOJ’s filing that they “strongly refute the DOJ’s claims.”

Google also works with outside counsel firms on its antitrust cases, including Axinn, Freshfields, Ropes & Gray and Wilson Sonsini, based on reports, statements and legal filings. Those firms collectively have around 20 former DOJ employees on their staff, many of them working in antitrust. Though these attorneys may not all work on Google matters, the firms themselves often tout the benefit of former government officials in bringing a helpful perspective to clients.

For example, Freshfields says on its website that its “deep bench of former DOJ and FTC trial attorneys gives us unique insight into how the enforcement agencies approach enforcement in general and litigation in particular.”

Kovacic said agency experience is something companies look for in hiring outside firms.

“In deciding who to retain, what law firm to retain or what economic consultancy to retain, they would place a lot of weight on how many former government officials are in those firms,” Kovacic said.

Freshfields attorneys Julie Elmer and Eric Mahr have led Google’s defense against an advertising technology monopolization case brought by a group of states led by Texas, The New York Times reported in 2021. And Bloomberg Law reported this year that Mahr will also lead its defense in the ad tech case brought by the DOJ.

Mahr was director of litigation for the DOJ Antitrust Division from 2015 to 2017, according to the Freshfields site, and Elmer worked as a trial attorney in the Antitrust Division from 2015 to 2020, according to her LinkedIn profile.

Revolving door hiring goes both ways between the public and private sectors, with government officials often working for previous employers or clients who become relevant in their work. For example, DOJ antitrust chief Jonathan Kanter previously worked for clients including Microsoft and Yelp which have complained of Google’s allegedly anticompetitive behavior.

Ultimately, however, Kanter was cleared to work on cases and investigations involving Google, despite the company’s suggestion that his past work should cast doubt on his ability to be fair in such matters.

The DOJ and Wilson Sonsini declined to comment. The three other firms mentioned did not immediately provide a comment for this story.

Limits for former government employees

There are limits on what former government officials can work on under federal ethics and Bar rules.

For example, the DOJ’s website says that former employees can’t represent someone before the government on an issue involving parties they “personally and substantially” worked on during their time in government. For two years after leaving the Department, a former employee also cannot represent anyone before the government in a matter involving parties they know “was pending under his official responsibility for the last year of government service and in which the U.S. is a party or has a substantial interest.”

And for one year after leaving the agency, former senior employees cannot represent someone before the agency “with the intent to influence” the DOJ on a pending matter or one in which it has an interest.

Personal and substantial work on a matter within government doesn’t depend on the length of time devoted to it, but the role a person played in potentially influencing the outcome or direction, according to Virginia Canter, the chief ethics counsel at Citizens for Responsibility and Ethics in Washington (CREW) who previously advised government officials on ethics at agencies including the Securities and Exchange Commission and the Treasury Department.

But even if a former government official can’t work on a specific matter they were privy to during their earlier employment, their insight might still be useful to a company.

“You can read about it, but when you’re actually part of dealing with these cases, you know that there are certain factors that are going to either act as mitigating or … that are going to more favorably incline you to bring a case,” Canter said. “It’s just your general knowledge and experience.”

When companies hire former government officials, they may also have the idea that those employees will be viewed more favorably by the current regime.

“Maybe there’s just this general impression that they’re trying to surround themselves with what will be perceived by their former colleagues as the good guys,” Canter hypothesized.

Some might argue that experience could be beneficial to the government in some cases, Canter noted. A former government employee might have a deeper understanding of the importance of compliance or providing certain information to officials, for example, having seen up close what could be at stake if they don’t.

Hauser said it’s unlikely DOJ leadership, especially Kanter, who has made a point to bring more aggressive cases in the tech space and overall, would be overly swayed to view things Google’s way in ongoing matters. But, he said, the impact of former DOJ staff employed by Google could be more influential in an emerging issue, where there’s an opportunity to leave a first impression on senior leadership about it.

The degree of this kind of influence may be relatively small on the level of an individual case, Hauser said, but for a company under such a high degree of regulatory scrutiny, it could add up.

“You’re talking about billions and billions of dollars of potential implications for Google’s net worth,” Hauser said. “Relatively small changes in the scope of the investigation, the timeframe of the investigation, can be very big, even if they don’t go to the overall question of will there be any lawsuits by the Justice Department against Google.”

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Nvidia’s new software could help trace where its AI chips end up

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Nvidia’s new software could help trace where its AI chips end up

Cfoto | Future Publishing | Getty Images

Nvidia is developing software that could provide location verification for its AI graphics processing units (GPUs), a move that comes as Washington ramps up efforts to prevent restricted chips from being used in countries like China.

The opt-in service uses a client software agent that Nvidia chip customers can install to monitor the health of their AI GPUs, the company said in a blog post on Wednesday

Nvidia also said that customers “will be able to visualize their GPU fleet utilization in a dashboard, globally or by compute zones — groups of nodes enrolled in the same physical or cloud locations.”

However, Nvidia told CNBC in a statement that the latest software does not give the company or outside actors the ability to disable its chips.

“There is no kill switch,” it added. “For GPU health, there are no features that allow NVIDIA to remotely control or take action on registered systems. It is readonly telemetry sent to NVIDIA.”

Telemetry is the automated process of collecting and transmitting data from remote or inaccessible sources to a central location for monitoring, analysis and optimization.

The ability to locate a device depends on the type of sensor data collected and transmitted, such as IP-based network information, timestamps, or other system-level signals that can be mapped to physical or cloud locations.

A screenshot of the software posted on Nvidia’s blog showed details such as the machine’s IP address and location.

A screenshot of the software posted on Nvidia’s blog showed details such as the machine’s IP address and location.

Nvidia blog screenshot | Opt-In NVIDIA Software Enables Data Center Fleet Management

Lukasz Olejnik, a senior research fellow at the Department of War Studies, King’s College London, said that while Nvidia indicated that its GPUs do not have hardware tracking technology, the blog did not specify if the data “uses customer input, network data, cloud provider metadata, or other methods.”

“In principle, also, the sent data contains metadata like network address, which may enable location in practice,” Olejnik, who is also an independent consultant, told CNBC.

The software could also detect any unexpected usage patterns that differ from what was declared, he added.

The latest features from Nvidia follow calls by lawmakers in Washington for the company to outfit its chips with tracking software that could help enforce export controls. 

Those rules bar Nvidia from selling its more advanced AI chips to companies in China and other prohibited locations without a special license. While Trump has recently said he plans to roll back some of these export restrictions, those on Nvidia’s cutting-edge chips will remain in place.  

In May, Senator Tom Cotton and a bipartisan group of eight lawmakers introduced the Chip Security Act, which, if passed, would mandate security mechanisms and location verification in advanced AI chips. 

“Firms affected by U.S. export controls or China-related restrictions could use the system to verify and prove their GPU fleets remain in approved locations and state, and demonstrate compliant usage to regulators,” Olejn noted.

“That could actually help in compliance and indirectly on investment outlook positively.”

Pressure on Nvidia has intensified after Justice Department investigations into alleged smuggling rings that moved over $160 million in Nvidia chips to China.

However, Chinese officials have pushed back, warning Nvidia against equipping its chips with tracking features, as well as “potential backdoors and vulnerabilities.” 

Following a national security investigation into some of Nvidia’s chips to check for these backdoors, Chinese officials have prevented local tech companies from purchasing products from the American chip designer. 

Despite a green light from U.S. President Donald Trump for Nvidia to ship its previously restricted H200 chips to China, Beijing is reportedly undecided about whether to permit the imports.

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Oracle shares plummet 11% in premarket, dragging down AI stocks

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Oracle shares plummet 11% in premarket, dragging down AI stocks

Oracle shares plummeted 11% in premarket trading on Thursday, extending yesterday’s losses after the firm reported disappointing results.

The cloud computing and database software maker reported lower-than-expected quarterly revenue on Wednesday, despite booming demand for its artificial intelligence infrastructure. Its revenue came in at $16.06 billion, compared with $16.21 billion expected by analysts, according to data compiled by LSEG.

It dragged other AI-related names down with it. Chip darling Nvidia was last seen down 1.5% in premarket trading, memory and storage firm Micron was 1.4% lower, tech heavyweight Microsoft dipped 0.9%, cloud company Coreweave slid 3% and AMD was 1.3% in negative territory.

Oracle shares drop sharply on mixed results

Oracle has been the subject of much market chatter since raising $18 billion in a jumbo bond sale in September, marking one of the largest debt issuances for the tech industry on record. The name shot onto investor agendas when it inked a $300 billion deal with OpenAI in the same month. Oracle made further moves into cloud infrastructure, where it battles Big Tech names such as AmazonMicrosoft and Google for AI contracts.

Global investors have questioned Oracle’s aggressive AI infrastructure build-out plans and whether it needs such a colossal amount of debt to execute, though other tech firms have also recently issued corporate bonds.

Oracle specifically has secured billions of dollars of construction loans through a consortium of banks tied to data centers in New Mexico and Wisconsin. The firm will raise roughly $20 billion to $30 billion in debt every year for the next three years, according to estimates by Citi analyst Tyler Radke.

Its share price has moved 34% higher year-to-date despite recent losses.

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Google’s AI unit DeepMind announces its first ‘automated research lab’ in the UK

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Google’s AI unit DeepMind announces its first 'automated research lab' in the UK

Google DeepMind, the tech giant’s AI unit, unveiled plans for its first “automated research lab” in the U.K. as it signs a partnership that could lead to the company deploying its latest models in the country. 

The AI company will open the lab, which will use AI and robotics to run experiments, in the U.K. next year. It will focus on developing new superconductor materials, which can be used to develop medical imaging tech, alongside new materials for semiconductors.

British scientists will gain “priority access” to some of the world’s most advanced AI tools under the partnership, the U.K. government said in its announcement.

Founded in London in 2010 by Nobel prize winner Demis Hassabis, DeepMind was acquired by Google in 2014, but has retained a large operational base in the U.K. The company has made several breakthroughs considered crucial to advancing AI technology.

The partnership could also lead to DeepMind working with the government on AI research in areas like nuclear fusion and deploying its Gemini models across government and education in the U.K, the government said.

“DeepMind serves as the perfect example of what UK-US tech collaboration can deliver – a firm with roots on both sides of the Atlantic backing British innovators to shape the curve of technological progress,” said U.K. Technology Secretary Liz Kendall in a statement.

“This agreement could help to unlock cleaner energy, smarter public services, and new opportunities which will benefit communities up and down the country,” she said.

Microsoft poaches more Google DeepMind AI talent as AI talent wars continue

“AI has incredible potential to drive a new era of scientific discovery and improve everyday life,” said Hassabis.

“We’re excited to deepen our collaboration with the UK government and build on the country’s rich heritage of innovation to advance science, strengthen security, and deliver tangible improvements for citizens.”

The U.K. has been racing to sign deals with major tech companies as it tries to build out its AI infrastructure and public deployment of the technology, since the publication of a national strategy for AI in January.

Microsoft, Nvidia, Google and OpenAI announced plans to funnel over $40 billion of investment into new AI infrastructure in the country in September, during a state visit by U.S. President Donald Trump.

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