Technologies
Apple, iPhones, photos and child safety: What’s happening and should you be concerned?
The tech giant’s built new systems to fight child exploitation and abuse, but security advocates worry it could erode our privacy. Here’s why.
Apple’s long presented itself as a bastion of security, and as one of the only tech companies that truly cares about user privacy. But a new technology designed to help an iPhone, iPad or Mac computer detect child exploitation images and videos stored on those devices has ignited a fierce debate about the truth behind Apple’s promises.
On Aug. 5, Apple announced a new feature being built into the upcoming iOS 15, iPad OS 15, WatchOS 8 and MacOS Monterey software updates designed to detect if someone has child exploitation images or videos stored on their device. It’ll do this by converting images into unique bits of code, known as hashes, based on what they depict. The hashes are then checked against a database of known child exploitation content that’s managed by the National Center for Missing and Exploited Children. If a certain number of matches are found, Apple is then alerted and may further investigate.
Apple said it developed this system to protect people’s privacy, performing scans on the phone and only raising alarms if a certain number of matches are found. But privacy experts, who agree that fighting child exploitation is a good thing, worry that Apple’s moves open the door to wider uses that could, for example, put political dissidents and other innocent people in harm’s way.
«Even if you believe Apple won’t allow these tools to be misused there’s still a lot to be concerned about,» tweeted Matthew Green, a professor at Johns Hopkins University who’s worked on cryptographic technologies.
Apple’s new feature, and the concern that’s sprung up around it, represent an important debate about the company’s commitment to privacy. Apple has long promised that its devices and software are designed to protect their users’ privacy. The company even dramatized that with an ad it hung just outside the convention hall of the 2019 Consumer Electronics Show, which said «What happens on your iPhone stays on your iPhone.»
«We at Apple believe privacy is a fundamental human right,» Apple CEO Tim Cook has often said.
Apple’s scanning technology is part of a trio of new features the company’s planning for this fall. Apple also is enabling its Siri voice assistant to offer links and resources to people it believes may be in a serious situation, such as a child in danger. Advocates had been asking for that type of feature for a while.
It also is adding a feature to its messages app to proactively protect children from explicit content, whether it’s in a green-bubble SMS conversation or blue-bubble iMessage encrypted chat. This new capability is specifically designed for devices registered under a child’s iCloud account and will warn if it detects an explicit image being sent or received. Like with Siri, the app will also offer links and resources if needed.
There’s a lot of nuance involved here, which is part of why Apple took the unusual step of releasing research papers, frequently asked questions and other information ahead of the planned launch.
Here’s everything you should know:
Why is Apple doing this now?
The tech giant said it’s been trying to find a way to help stop child exploitation for a while. The National Center for Missing and Exploited Children received more than 65 million reports of material last year. Apple said that’s way up from the 401 reports 20 years ago.
«We also know that the 65 million files that were reported is only a small fraction of what is in circulation,» said Julie Cordua, head of Thorn, a nonprofit fighting child exploitation that supports Apple’s efforts. She added that US law requires tech companies to report exploitative material if they find it, but it does not compel them to search for it.
Other companies do actively search for such photos and videos. Facebook, Microsoft, Twitter, and Google (and its YouTube subsidiary) all use various technologies to scan their systems for any potentially illegal uploads.
What makes Apple’s system unique is that it’s designed to scan our devices, rather than the information stored on the company’s servers.
The hash scanning system will only be applied to photos stored in iCloud Photo Library, which is a photo syncing system built into Apple devices. It won’t hash images and videos stored in the photos app of a phone, tablet or computer that isn’t using iCloud Photo Library. So, in a way, people can opt out if they choose not to use Apple’s iCloud photo syncing services.
Could this system be abused?
The question at hand isn’t whether Apple should do what it can to fight child exploitation. It’s whether Apple should use this method.
The slippery slope concern privacy experts have raised is whether Apple’s tools could be twisted into surveillance technology against dissidents. Imagine if the Chinese government were able to somehow secretly add data corresponding to the famously suppressed Tank Man photo from the 1989 pro-democracy protests in Tiananmen Square to Apple’s child exploitation content system.
Apple said it designed features to keep that from happening. The system doesn’t scan photos, for example — it checks for matches between hash codes. The hash database is also stored on the phone, not a database sitting on the internet. Apple also noted that because the scans happen on the device, security researchers can audit the way it works more easily.
Is Apple rummaging through my photos?
We’ve all seen some version of it: The baby in the bathtub photo. My parents had some of me, I have some of my kids, and it was even a running gag on the 2017 Dreamworks animated comedy The Boss Baby.
Apple says those images shouldn’t trip up its system. Because Apple’s system converts our photos to these hash codes, and then checks them against a known database of child exploitation videos and photos, the company isn’t actually scanning our stuff. The company said the likelihood of a false positive is less than one in 1 trillion per year.
«In addition, any time an account is flagged by the system, Apple conducts human review before making a report to the National Center for Missing and Exploited Children,» Apple wrote on its site. «As a result, system errors or attacks will not result in innocent people being reported to NCMEC.»
Is Apple reading my texts?
Apple isn’t applying its hashing technology to our text messages. That, effectively, is a separate system. Instead, with text messages, Apple is only alerting a user who’s marked as a child in their iCloud account about when they’re about to send or receive an explicit image. The child can still view the image, and if they do a parent will be alerted.
«The feature is designed so that Apple does not get access to the messages,» Apple said.
What does Apple say?
Apple maintains that its system is built with privacy in mind, with safeguards to keep Apple from knowing the contents of our photo libraries and to minimize the risk of misuse.
«At Apple, our goal is to create technology that empowers people and enriches their lives — while helping them stay safe,» Apple said in a statement. «We want to protect children from predators who use communication tools to recruit and exploit them, and limit the spread of Child Sexual Abuse Material.»
Technologies
Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance
Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.
Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.
The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.
Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.
Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.
Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.
The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»
Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.
Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.
At Monday’s close, the stock had dropped 14% year-to-date.
Technologies
OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report
OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.
OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.
Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.
‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’
Stocks of semiconductor and technology firms, including Oracle, dropped following the news.
The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.
Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.
This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.
Read the full report from The Wall Street Journal.
Technologies
OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift
OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.
Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).
AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.
‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.
Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.
OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.
‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’
A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.
Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’
On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.
OpenAI and Amazon have been getting closer in other ways.
In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.
Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.
The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.
‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’
WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know
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