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United Nations — The U.N. General Assembly adopted by consensus Thursday a first-of-its-kind resolution addressing the potential of artificial intelligence to accelerate progress toward sustainable development, while emphasizing the need for safe, secure and trustworthy AI systems.

The initiative, led by the United States, seeks to manage AI’s risks while utilizing its benefits.

“Today as the U.N. and AI finally intersect, we have the opportunity and the responsibility to choose as one united global community to govern this technology rather than to let it govern us,” said U.S. Ambassador Linda Thomas-Greenfield. “So let us reaffirm that AI will be created and deployed through the lens of humanity and dignity, safety and security, human rights and fundamental freedoms.”

The Biden administration said it took more than three months to negotiate what it characterized as a “baseline set of principles” around AI, engaging with 120 countries and incorporating feedback from many of them, including China, which was one of the 123 co-sponsors of the text.

While General Assembly resolutions are not legally binding, they reflect the political consensus of the international community.

The resolution recognizes the disparities in technological development between developed and developing countries and stresses the need to bridge the digital divide so everyone can equitably access the benefits of AI.

It also outlines measures for responsible AI governance, including the development of regulatory frameworks, capacity building initiatives and support for research and innovation. The resolution encourages international collaboration to address the evolving challenges and opportunities AI technologies pose, with a focus on advancing sustainable development goals.

U.S. Vice President Kamala Harris welcomed adoption of the resolution, saying all nations must be guided by a common set of understandings on the use of AI systems.

“Too often, in past technological revolutions, the benefits have not been shared equitably, and the harms have been felt by a disproportionate few,” she said in a statement. “This resolution establishes a path forward on AI where every country can both seize the promise and manage the risks of AI.”

At the World Economic Forum meetings in Davos, Switzerland, in January, U.N. Secretary-General Antonio Guterres expressed concern about the risk of unintended consequences with “every new iteration of generative AI.” He said it has “enormous potential” for sustainable development but also the potential to worsen inequality.

“And some powerful tech companies are already pursuing profits with a clear disregard for human rights, personal privacy and social impact,” he said at the time.

The U.N. chief created an AI advisory body last year, and it will publish its final report ahead of the U.N.’s Summit of the Future in September.
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Washington — The U.S. Department of Justice on Thursday sued Apple, the first major antitrust effort against the iPhone maker by the Biden administration, alleging it monopolized smartphone markets.  

Apple joins a list of major tech companies sued by U.S. regulators, including Alphabet’s  Google, Meta Platforms and Amazon.com across the administrations of both former President Donald Trump and President Joe Biden.

“Consumers should not have to pay higher prices because companies violate the antitrust laws,” Attorney General Merrick Garland said in a statement. “If left unchallenged, Apple will only continue to strengthen its smartphone monopoly.”

The Justice Department alleges that Apple uses its market power to get more money from consumers, developers, content creators, artists, publishers, small businesses and merchants.

The civil lawsuit accuses Apple of an illegal monopoly on smartphones maintained by imposing contractual restrictions on, and withholding critical access from, developers.

Apple has already been subject to antitrust probes and orders in Europe, Japan and Korea, as well as lawsuits from corporate rivals such as Epic Games.  

One of Apple’s most lucrative businesses – its App Store, which charges developers commissions of up to 30% – has already survived a lengthy legal challenge under U.S. law by Epic. While the lawsuit found that Apple did not violate antitrust laws, a federal judge ordered Apple to allow links and buttons to pay for apps without using Apple’s in-app payment commission.

In Europe, Apple’s App Store business model has been dismantled by a new law called the Digital Markets Act that went into effect earlier this month. Apple plans to let developers offer their own app stores – and, importantly, pay no commissions – but rivals such as Spotify and Epic argue Apple is still making it too hard to offer alternative app stores.

The rulings on Apple’s App Store forced the Justice Department to look at Apple’s other practices for the basis of a complaint, such as how Apple allows outside firms to access the chips and sensors in the iPhone.

Consumer hardware firms, such as smart-tracker maker Tile Inc, have long complained that Apple has restricted the ways in which they can work with the iPhone’s sensors while developing competing products that have greater access.  

Apple began selling AirTags – which can be attached to items like car keys to help users find them when they are lost – several years after Tile had been selling a similar product.

Similarly, Apple has restricted access to a chip in the iPhone that allows for contactless payments. Credit cards can only be added to the iPhone by using Apple’s own Apple Pay service.  

And Apple has also faced criticism over its iMessage service, which only works on Apple devices.

Apple has long argued that it restricts access to some user data and some of the iPhone’s hardware by third-party developers for privacy and security reasons.
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NEW YORK — Reddit soared in its Wall Street debut as investors pushed the valued of the company close to $9 billion seconds after it began trading on the New York Stock Exchange.

Reddit, which priced its IPO at $34 a share, debuted Thursday afternoon at $47 a share. The going price has climbed even higher since, with shares for the self-anointed “front page of the internet” soaring more than 55% as of around 1:20 p.m. ET.

The IPO will test the quirky company’s ability to overcome a nearly 20-year history colored by uninterrupted losses, management turmoil and occasional user backlashes to build a sustainable business.

“The supply is pretty limited and there’s strong demand, so my sense is that this is going to be a hot IPO,” Reena Aggarwal, director of Georgetown University’s Psaros Center for Financial Markets and Policy, said ahead of Reddit’s trading Thursday. “The good news for Reddit is it’s a hot market.”

Still, she also anticipates Reddit’s IPO to be volatile. Even with a sizeable “pop,” it’s possible that some might sell their shares to reap their gains soon after, potentially causing prices to drift.

The interest surrounding Reddit stems largely from a large audience that religiously visits the service to discuss a potpourri of subjects that range from silly memes to existential worries, as well as get recommendations from like-minded people.

About 76 million users checked into one of Reddit’s roughly 100,000 communities in December, according to the regulatory disclosures required before the San Francisco company goes public. Reddit set aside up to 1.76 million of 15.3 million shares being offered in the IPO for users of its service.

Per the usual IPO custom, the remaining shares are expected to be bought primarily by mutual funds and other institutional investors betting Reddit is ready for prime time in finance.

Reddit’s moneymaking potential also has attracted some prominent supporters, including OpenAI CEO Sam Altman, who accumulated a stake as an early investor that has made him one of the company’s biggest shareholders. Altman owns 12.2 million shares of Reddit stock, according to the company’s IPO disclosures.

Other early investors in Reddit have included PayPal co-founder Peter Thiel, Academy Award-winning actor Jared Leto and rapper Snoop Dogg. None of them are listed among Reddit’s largest shareholders heading into the IPO.

By the tech industry’s standards, Reddit remains extraordinarily small for a company that has been around as long as it has.

Reddit has never profited from its broad reach while piling up cumulative losses of $717 million. That number has swollen from cumulative losses of $467 million in December 2021 when the company first filed papers to go public before aborting that attempt.

In the recent documents filed for its revived IPO, Reddit attributed the losses to a fairly recent focus on finding new ways to boost revenue.

Not long after it was born, Reddit was sold to magazine publisher Conde Nast for $10 million in deal that meant the company didn’t need to run as a standalone business. Even after Conde Nast parent Advance Magazine Publishers spun off Reddit in 2011, the company said in its IPO filing that it didn’t begin to focus on generating revenue until 2018.

Those efforts, mostly centered around selling ads, have helped the social platform increase its annual revenue from $229 million in 2020 to $804 million last year. But the San Francisco-based company also posted combined losses of $436 million from 2020 through 2023.

Reddit outlined a strategy in its filing calling for even more ad sales on a service that it believes companies will be a powerful marketing magnet because so many people search for product recommendations there.

The company also is hoping to bring in more money by licensing access to its content in deals similar to the $60 million that Google recently struck to help train its artificial intelligence models. That ambition, though, faced an almost immediate challenge when the U.S. Federal Trade Commission opened an inquiry into the arrangement.

Since Thursday just marks Reddit’s first day on the public market, Aggarwal stresses that the first key measure of success will boil down to the company’s next earnings call.

“As a public company now they have to report a lot more … in the next earnings release,” she said. “I’m sure the market will watch that carefully.”

Reddit also experienced tumultuous bouts of instability in leadership that may scare off prospective investors. Company co-founders Steve Huffman and Alexis Ohanian — also the husband of tennis superstar Serena Williams — both left Reddit in 2009 while Conde Nast was still in control, only to return years later.

Huffman, 40, is now CEO, but how he got the job serves as a reminder of how messy things can get at Reddit. The change in command occurred in 2015 after Ellen Pao resigned as CEO amid a nasty user backlash to the banning of several communities and the firing of Reddit’s talent director. Even though Ohanian said he was primarily responsible for the firing and the bans, Pao was hit with most of the vitriol.

Although his founder’s letter leading up to this IPO didn’t mention it, Huffman touched upon the company’s past turmoil in another missive included in a December 2021 filing attempt that was subsequently canceled.

“We lived these challenges publicly and have the scars, learnings, and policy updates to prove it,” Huffman wrote in 2021. “Our history influences our future. There will undoubtedly be more challenges to come.”
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