<p>Microsoft has been hit with a lawsuit by a group of authors who claim the company used their books without permission to train its Megatron artificial intelligence model.</p>
<p>Kai Bird, Jia Tolentino, Daniel Okrent, and several others alleged that Microsoft used pirated digital versions of their books to teach its AI to respond to human prompts. Their lawsuit, filed in New York federal court on Tuesday, is one of several high-stakes cases brought by authors, news outlets, and other copyright holders against tech companies including Meta Platforms, Anthropic, and Microsoft-backed OpenAI over alleged misuse of their material in AI training.</p>
<p>The complaint against Microsoft came a day after a California federal judge ruled that Anthropic made fair use under U.S. copyright law of authors&#8217; material to train its AI systems, but may still be liable for pirating their books. It was the first U.S. decision on the legality of using copyrighted materials without permission for generative AI training.</p>
<p>Spokespeople for Microsoft did not immediately respond to a request for comment on the lawsuit. An attorney for the authors declined to comment.</p>
<p>The writers alleged in the complaint that Microsoft used a collection of nearly 200,000 pirated books to train Megatron, an algorithm that gives text responses to user prompts. The complaint said Microsoft used the pirated dataset to create a &#8220;computer model that is not only built on the work of thousands of creators and authors, but also built to generate a wide range of expression that mimics the syntax, voice, and themes of the copyrighted works on which it was trained.&#8221;</p>
<p>Tech companies have argued that they make fair use of copyrighted material to create new, transformative content, and that being forced to pay copyright holders for their work could hamstring the burgeoning AI industry.</p>
<p>The authors requested a court order blocking Microsoft&#8217;s infringement and statutory damages of up to $150,000 for each work that Microsoft allegedly misused.</p>
<p>(Reporting by Blake Brittain in Washington, Editing by Alexia Garamfalvi and David Gregorio)</p>

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Microsoft Sued By Authors Over Use Of Books In AI Training

CONTINUE READING

<p>Microsoft has been hit with a lawsuit by a group of authors who claim the company used their books without permission to train its Megatron artificial intelligence model.</p>
<p>Kai Bird, Jia Tolentino, Daniel Okrent, and several others alleged that Microsoft used pirated digital versions of their books to teach its AI to respond to human prompts. Their lawsuit, filed in New York federal court on Tuesday, is one of several high-stakes cases brought by authors, news outlets, and other copyright holders against tech companies including Meta Platforms, Anthropic, and Microsoft-backed OpenAI over alleged misuse of their material in AI training.</p>
<p>The complaint against Microsoft came a day after a California federal judge ruled that Anthropic made fair use under U.S. copyright law of authors&#8217; material to train its AI systems, but may still be liable for pirating their books. It was the first U.S. decision on the legality of using copyrighted materials without permission for generative AI training.</p>
<p>Spokespeople for Microsoft did not immediately respond to a request for comment on the lawsuit. An attorney for the authors declined to comment.</p>
<p>The writers alleged in the complaint that Microsoft used a collection of nearly 200,000 pirated books to train Megatron, an algorithm that gives text responses to user prompts. The complaint said Microsoft used the pirated dataset to create a &#8220;computer model that is not only built on the work of thousands of creators and authors, but also built to generate a wide range of expression that mimics the syntax, voice, and themes of the copyrighted works on which it was trained.&#8221;</p>
<p>Tech companies have argued that they make fair use of copyrighted material to create new, transformative content, and that being forced to pay copyright holders for their work could hamstring the burgeoning AI industry.</p>
<p>The authors requested a court order blocking Microsoft&#8217;s infringement and statutory damages of up to $150,000 for each work that Microsoft allegedly misused.</p>
<p>(Reporting by Blake Brittain in Washington, Editing by Alexia Garamfalvi and David Gregorio)</p>

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<p>Oil prices rose over 1 percent on Wednesday, recovering from a sharp slide early this week, as data showed relatively strong U.S. demand, and as investors assessed the stability of a ceasefire between Iran and Israel.</p>
<p>Brent crude futures were up 82 cents, or 1.2%, at $67.96 a barrel. U.S. West Texas Intermediate (WTI) crude was up 83 cents, or 1.3%, to $65.20.</p>
<p>On Tuesday, Brent settled at its lowest since June 10 and WTI at its lowest since June 5.</p>
<p>Oil prices rose after June 13, when Israel launched a surprise attack on key Iranian military and nuclear facilities. Prices rallied to five-month highs after the U.S. attacked Iran&#8217;s nuclear facilities over the weekend.</p>
<p>Boosting prices on Wednesday, data from the Energy Information Administration showed U.S. crude, gasoline and distillate inventories fell last week. Crude inventories dropped by 5.8 million barrels to 415.1 million barrels, the EIA said, compared with analysts&#8217; expectations in a Reuters poll for a 797,000-barrel draw.</p>
<p>&#8220;We are looking at big draws across the board,&#8221; said Phil Flynn, senior analyst with the Price Futures Group. &#8220;This type of report can refocus on U.S. supply and demand, and less on geopolitics.&#8221;</p>
<p>Traders and analysts are also seeing some support from market expectations that the Federal Reserve could soon cut U.S. interest rates. Lower interest rates typically spur economic growth and demand for oil.</p>
<p>&#8220;Fed Chair (Jerome) Powell&#8217;s first testimony to Congress (on Tuesday) has hinted at a slight chance of bringing forward the first rate cut of 2025 to July &#8230; which should offer some form of floor on oil prices from the demand side,&#8221; said OANDA senior market analyst Kelvin Wong.</p>
<p>A slew of U.S. macroeconomic data released overnight, including data on consumer confidence, showed possibly weaker-than-expected economic growth in the world&#8217;s largest oil consumer, bolstering expectations of Fed rate cuts this year.</p>
<p>Futures point to nearly 60 basis points&#8217; worth of easing by December.</p>
<p>On the geopolitical front, U.S. President Donald Trump said on Wednesday Israel and Iran are tired but the conflict between the two countries could start again. He added to reporters gathered at the NATO summit that he has not given up on his maximum pressure campaign against Iran, including sanctions against buyers of Iran’s oil, but did suggest once again loosening of sanctions.</p>
<p>A preliminary U.S. intelligence assessment said U.S. airstrikes did not destroy Iran&#8217;s nuclear capability and only set it back by a few months, as a ceasefire brokered by Trump took hold between Iran and Israel.</p>
<p>Both Iran and Israel signaled on Tuesday that their air war had ended, at least for now, after Trump publicly scolded them for violating the ceasefire.</p>
<p>As the two countries lifted civilian restrictions after 12 days of war &#8211; which the U.S. joined with an attack on Iran&#8217;s uranium-enrichment facilities &#8211; each sought to claim victory.</p>
<p>&#8220;While concerns regarding Middle Eastern supply have diminished for now, they have not entirely disappeared, and there remains a stronger demand for immediate supply,&#8221; said ING analysts in a client note.</p>
<p>Oil prices will likely consolidate at around $65-70 per barrel levels as traders look to more U.S. macroeconomic data this week and the Fed&#8217;s rate decision, said independent market analyst Tina Teng.</p>
<p>(Reporting by Stephanie Kelly; Additional reporting by Anna Hirtenstein and Trixie Yap; Editing by Shri Navaratnam, Jan Harvey, Mark Potter, Rachna Uppal, Kevin Liffey and David Gregorio)</p>

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Oil Prices Tick Up Based On Strong American Demand

<p>WASHINGTON (Reuters) — Higher tariffs could begin raising inflation this summer, a period that will be key to Federal Reserve consideration of possible rate cuts, Fed Chair Jerome Powell told members of Congress on Tuesday.</p>
<p>Pressed by Republican members of the House Financial Services committee about why the Fed isn&#8217;t cutting rates, as President Donald Trump has demanded, Powell said he and many at the Fed expect inflation to start rising soon, and that the central bank was in no rush to ease borrowing costs in the meantime.</p>
<p>Powell particularly said he would not open the door to a rate cut at the Fed&#8217;s July meeting, as two of his colleagues recently suggested, or at any other session for that matter.</p>
<p>&#8220;I do not want to point to a particular meeting. I don&#8217;t think we need to be in any rush,&#8221; given a still-strong labor market and so much uncertainty about the impact of the still-unresolved tariff debate, Powell said.</p>
<p>Referring to expected tariff-driven price increases, Powell said &#8220;we should start to see this over the summer, in the June number and the July number. &#8230; If we don&#8217;t we are perfectly open to the idea that the pass-through (to consumers) will be less than we think, and if we do that will matter for policy.&#8221;</p>
<p>“I think if it turns out that inflation pressures remain contained we will get to a place where we cut rates sooner than later,&#8221; he said.</p>
<p>With the central bank largely sidelined waiting for the outcome of the Trump administration&#8217;s tariff negotiations, Powell was quizzed repeatedly about why the central bank seemed preoccupied with that issue and isn&#8217;t cutting rates given that inflation so far has been modest.</p>
<p>Powell said that Fed policy isn&#8217;t meant to endorse or criticize the Trump administration&#8217;s approach to trade, only to deal with an inflation impact that the Fed and forecasts more broadly expect to gather momentum over the rest of the year.</p>
<p>&#8220;We aren&#8217;t commenting on tariffs,&#8221; Powell said. &#8220;Our job is keeping inflation under control, and when policies have short- and medium-term, meaningful, implications, then inflation becomes our job.&#8221;</p>
<p>&#8220;All professional forecasters I know of&#8230;expect a meaningful increase in inflation over the course of this year,&#8221; Powell said, elaborating on the Fed&#8217;s reluctance to cut rates while major aspects of Trump&#8217;s trade policy remain unresolved.</p>
<h3>PARING BETS</h3>
<p>In prepared testimony to the House panel, Powell noted that those effects &#8220;could be short-lived, reflecting a one-time shift in the price level. It is also possible that the inflationary effects could instead be more persistent. &#8230; For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.&#8221;</p>
<p>Following the release of Powell&#8217;s testimony, investors pared bets that the central bank might cut its policy interest rate as soon as the central bank&#8217;s July meeting, and increased the perceived odds for a rate reduction in September, with another to follow later in the year.</p>
<p>Powell&#8217;s testimony, as is usually the case with his semiannual congressional appearances, largely tracks the central bank&#8217;s most recent policy statement, approved last week. Fed officials voted unanimously at that meeting to hold the benchmark interest rate steady in the current 4.25% to 4.5% range, and gave no indication rate cuts were imminent.</p>
<p>New economic projections released at the time showed officials at the median expect two quarter-point rate cuts by the end of the year, in line with current market pricing.</p>
<p>In recent days, two Fed governors, both Trump appointees, have said rates could fall as soon as the July meeting, given inflation has not yet risen in response to tariffs, while three reserve bank presidents said they still worry inflation will intensify over the rest of the year.</p>
<p>Trump, who appointed Powell as chair in his first term but is expected to replace him when his term ends next spring, has repeatedly called for steep rate cuts.</p>
<p>&#8220;We should be at least two to three points lower,&#8221; he said in a social media post ahead of the hearing, adding in reference to Powell that he hoped &#8220;Congress really works this very dumb, hardheaded person, over.&#8221;</p>
<p>(Reporting by Howard Schneider; Editing by Andrea Ricci)</p>

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Jerome Powell Suggests Delaying Rate Cuts Beyond July Meeting While Fed Studies Tariff Impact

<p>NEW YORK (Reuters) — Federal Reserve Vice Chair for Supervision Michelle Bowman, recently tapped by President Trump as the central bank’s top bank overseer, said Monday the time to cut interest rates may be fast approaching as she is growing more worried about risks to the job market and is less concerned tariffs will cause an inflation problem.</p>
<p>“It is time to consider adjusting the policy rate,” Bowman said in the text of remarks to be delivered before a gathering held in Prague, Czech Republic. Bowman said inflation appears to be on a sustained path back to 2%, and she said she expects “only minimal impact” on inflation from trade policy.</p>
<p>“Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labor market,” Bowman said.</p>
<p>Last week, the Federal Reserve meeting in a gathering that left its overnight target-rate range fixed between 4.25% and 4.5%. Officials remained in a wait-and-see mode amid the considerable economic uncertainty created by President Donald Trump’s erratically implemented trade policy. Fed officials are worried surging import taxes could depress growth while restarting what had been cooling inflation pressures.</p>
<p>Bowman said in her speech that she supported the Fed’s decision to hold steady. But she appears to see far fewer storm clouds ahead for the economy, and in her speech, she said more clarity is arriving over the outlook. Bowman’s openness to cutting rates is joined by that of Fed Governor Christopher Waller, who <a href="https://www.dailywire.com/news/fed-reserve-gov-says-rate-cuts-should-be-considered-as-trump-ramps-up-pressure-on-powell">said</a> in a television interview Friday he’d also consider a rate cut at the July 29-30 meeting. Waller is widely considered to be in the running to succeed Fed Chair Jerome Powell, whose term ends next year.</p>
<p>Trump has repeatedly pressured the Fed to pursue very large rate cuts amid insults to Powell. Observers believe any Fed chair would need to align with Trump’s desire for much lower short-term borrowing costs.</p>
<p>In her remarks, Bowman noted the job market is still in a good place, but she’s more worried about what lies ahead for the sector, and that’s part of what’s informing her dovish monetary policy views.</p>
<p>“We should also recognize that downside risks to our employment mandate could soon become more salient, given recent softness in spending and signs of fragility in the labor market,” Bowman said.</p>
<p>The Fed official was also quite sanguine on the inflation outlook, saying “it appears that any upward pressure from higher tariffs on goods prices is being offset by other factors and that the underlying trend in core [Personal Consumption Expenditures] inflation is moving much closer to our 2% target than is currently apparent in the data.”</p>
<p>(Reporting by Michael S. Derby, Editing by Louise Heavens)</p>

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Federal Reserve Vice Chair Open To Cutting Interest Rates At Next Meeting

<p>NEW YORK (Reuters) — Sean &#8216;Diddy&#8217; Combs&#8217; former personal assistant testified on Friday at the hip-hop mogul&#8217;s sex trafficking trial that he often bought drugs for his boss and set up hotel rooms for sex parties known as &#8220;wild king nights.&#8221;</p>
<p>Prosecutors hope the testimony by Brendan Paul, who worked for Combs from late 2022 through March 2024, will help them prove their racketeering conspiracy charge against Combs.</p>
<p>Prosecutors say Combs used his businesses&#8217; resources to coerce women into ecstasy-fueled sexual performances with male sex workers.</p>
<p>Combs, 55, has pleaded not guilty to all five criminal counts. His lawyers call the sexual activity consensual. The Bad Boy Records founder, a former billionaire who elevated hip-hop in American culture, could face life in prison if convicted.</p>
<p>Prosecutors are winding down their case after six weeks, with defense witnesses expected to testify next week.</p>
<p>Paul, testifying under immunity from prosecutors, said he bought Combs about $4,200 of marijuana and hundreds of dollars of ketamine during his employment.</p>
<p>Jurors saw a text message in which Paul asked Combs&#8217; security staff to be reimbursed for his drug purchases.</p>
<p>They also saw a February 14, 2024, text message in which Combs wrote &#8220;You get me zans,&#8221; which Paul said was a request to procure Xanax without a prescription.</p>
<p>Paul said Combs ultimately obtained Xanax elsewhere, and used cocaine and ecstasy in his presence.</p>
<p>Under cross-examination by defense lawyer Brian Steel, Paul said procuring drugs was a minor part of his job, and he thought the drugs were solely for Combs&#8217; personal use.</p>
<p>&#8220;You were not some drug mule?&#8221; Steel asked.</p>
<p>&#8220;Absolutely not,&#8221; Paul said.</p>
<p>Paul also said that before three or four &#8220;wild king nights,&#8221; he stocked hotel rooms with lubricant, baby oil, liquor, and a Gucci pouch filled with hard drugs.</p>
<p>When Combs was done, Paul said he would put on gloves and clean up to avoid being billed by hotels for damage.</p>
<p>Paul said he was charged with cocaine possession after being arrested on March 25, 2024, at Miami-Opa Locka airport in Florida while traveling to the Bahamas with Combs and other staffers.</p>
<p>He said he put the cocaine in his bag after finding it while cleaning Combs&#8217; room that day, but forgot about it and did not tell law enforcement where it came from.</p>
<p>Asked by prosecutor Christy Slavik why he kept silent, Paul said, &#8220;Loyalty.&#8221; Paul said the cocaine charge was dropped.</p>
<p>(Reporting by Luc Cohen in New York; Editing by David Gregorio)</p>

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Ex-Assistant To Sean ‘Diddy’ Combs Says Job Included Buying Drugs, Setting Up Sex Parties

<p>BRUSSELS (Reuters) -Alphabet&#8217;s Google faced a potential setback on Thursday as an adviser to Europe&#8217;s highest court sided with antitrust regulators in the company&#8217;s fight against a record 4.34 billion euro ($4.98 billion) fine levied seven years ago.</p>
<p>The European Commission in its 2018 decision said Google had used its Android mobile operating system to block rivals. A lower tribunal endorsed the EU finding in 2022 but trimmed the fine to 4.1 billion euros, prompting Google to appeal to Europe&#8217;s top court.</p>
<p>Advocate-General at the Luxembourg-based Court of Justice of the European Union (CJEU) Juliane Kokott, in her non-binding opinion, advised the court to dismiss Google&#8217;s appeal and confirm the reduced fine set by the lower tribunal.</p>
<p>&#8220;The legal arguments put forward by Google are ineffective,&#8221; she said.</p>
<p>Kokott dismissed Google&#8217;s argument that regulators should compare Google with a rival in assessing the situation.</p>
<p>&#8220;It is not realistic, in the present case, to compare the situation of Google with that of a hypothetical as-efficient competitor. Google held a dominant position in several markets of the Android-ecosystem and thus benefited from network effects that enabled it to ensure that users used Google Search,&#8221; she said.</p>
<p>Judges, who usually follow four out of five such non-binding opinions, will rule in the coming months.</p>
<p>&#8220;Android has created more choice for everyone and supports thousands of successful businesses in Europe and around the world,&#8221; a Google spokesperson said on Thursday.</p>
<p>&#8220;We are disappointed with the Opinion which, if it were followed by the Court, would discourage investment in open platforms and harm Android users, partners and app developers.&#8221;</p>
<p>Regulators said Google&#8217;s illegal practices dated back to 2011, as it required manufacturers to pre-install Google Search and its Chrome browser together with its Google Play app store on their Android devices. It paid them to pre-install only Google Search and blocked them from using rival Android systems.</p>
<p>Google&#8217;s Android system, which it lets device makers use for free, runs about 73% of the world&#8217;s smartphones, according to Statcounter.</p>
<p>The world&#8217;s most popular internet search engine has racked up a total of 8.25 billion euros in fines linked to three investigations stretching back more than a decade, while other probes are ongoing.</p>
<p>The case is C-738/22 P Google and Alphabet v Commission.</p>
<p>(Reporting by Foo Yun Chee; Editing by Bernadette Baum)</p>

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Google Faces Setback In Fight Against $5 Billion Anti-Trust Fine

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Microsoft Sued By Authors Over Use Of Books In AI Training

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