Blog

Oct. 31, 2023: Google CEO Sundai Pichai takes the stand, for long-awaited testimony about the relationship between his company and Apple. He gave some details about Google’s negotiations with Apple over a contract that made Google the default search engine on Apple’s iPhones, iPads, and Macs. Google has paid billions for the privilege of being the default search on Apple products, and the relationship is a key part of the case – which was underlined by the Justice Department’s cross-examination of Pichai, during which he admitted that default search status is a major driver of market share.

Oct. 18, 2023: Google begins its defense, calling Paul Nayak, a vice president of search, to the stand as its first witness. Nayak downplays the importance of scale in his testimony, stressing that machine intelligence, compute infrastructure, and a team of 16,000 staff that checks on search results are crucial to maintaining quality of service. DOJ witnesses including DuckDuckGo CEO Gabriel Weinberg and Microsoft CEO Satya Nadella had testified that Google keeps an edge over competitors via an ever-increasing trove of data — the result of its default search engine status, maintained through exclusive contracts and billions of dollars in payments to Apple, Samsung and other companies. This data gives Google an advantage in refining search engine results, they said. 

Oct. 3, 2023: As a witness for the prosecution in the Google antitrust trial, Microsoft CEO Satya Nadella warns that Google’s monopoly profits could lock in publishers as AI-enabled search arrives. Nadella argued that it’s almost impossible to compete with Google, given the search leader’s massive competitive edge in collecting and analyzing user data. He also warned that Google, with its vast profits and lock on the search market, stands poised to extend its monopoly power in a new era where artificial intelligence technologies will turbocharge the search business.

Things are getting serious regarding Apple security. This shouldn’t really surprise you, given the normalization of chaos we’re enduring, as confusion always makes people more vulnerable. It’s easier to be hoodwinked into clicking that particular malware link when your head’s all over the place, you can’t think, and you don’t know whether you’ll still be in business tomorrow.

That’s because threats don’t need to be aligned or even harmonized to work together. Insecurity in one space breeds less security elsewhere, and then the whole house of dominoes falls on the strength of a single malicious whisper. Just last week, Ric Derbyshire, principal cybersecurity researcher at Orange Cyberdefense, warned that the digital world is at risk. 

Apple fixes two zero-days

Then, as if on cue, Apple rushes out its iOS 18.4.1 security patch to fix a pair of zero-day attacks it thinks are being actively used. The patch has also been made available to Macs, iPads, and other Apple devices.

“The issue is that the setting to audit logon and logoff events may be disabled (set to ‘no auditing’) and yet still produce log entries for events of this type,” explained Fred Chagnon, principal research director at Info-Tech Research Group. “These events are triggered by users or devices authenticating to the local Active Directory when joining the domain.”

Potentially confusing reports

Out-of-band updates address urgent issues outside of regular release cycles, often for security or other critical issues. They require manual download and installation because they do not impact all users.

The AD Group Policy inconsistency is visible in the Local Group Policy Editor (where administrators manage policy settings on a local computer) and Local Security Policy (where administrators manage security settings on individual computers). The ‘audit logon events’ policy setting allows system administrators to track logon and logoff events and create new entries in audit logs that register all user and service activities. It is typically used in security and compliance scenarios.

“This is fully what we were expecting,” said Jon Nelson, a principal advisory director at Info-Tech Research Group. “[But] I do question the motives of the group. They are doing this under the auspices of reducing risk, but I question if that is the real reason. Do the people making up this group have a conflict of interest in that this move could generate additional revenue for their companies?”

Although the group voted overwhelmingly to approve the change, with zero “No” votes, not every member agreed with the decision; five members abstained.

Tim Callan, the chief compliance officer at Sectigo and vice chair of the CA/Browser Forum, said that one of the certificate authority (CA) members who abstained, who he declined to identify, wrote a note to the group. Callan said it read, “we have mixed feelings about this. We are in favor in principle. However, we are unconvinced that the most restrictive terms are necessary, to go all of the way down to 47 days.”

However, he said, “given the temporary workaround that was published, and an expected fast fix, the negative impact shouldn’t be long term or extensive. It’s also been widely shared in the news, and that could help reduce the call volume and trouble tickets for enterprises.”

Microsoft said in the release notes for a Patch Tuesday security update released this week that it is “aware of an edge case of Windows Hello issue affecting devices with specific security features enabled.”

The company stated, “after installing this update and performing a Push button reset or Reset this PC from Settings > System > Recovery and selecting Keep my Files and Local install, some users might be unable to login to their Windows services using Windows Hello facial recognition or PIN. Users might observe a Windows Hello Message saying ‘Something happened, and your PIN isn’t available. Click to set up your PIN again’ or ‘Sorry something went wrong with face setup.’”

People are ready to accept it

It’s not as if we’re not ready for such a service. Even back in 2022, CIRP Partner and Co-Founder Josh Lowitz said: “Based on current consumer behavior, iPhone users are primed to adopt a subscription service that provides an iPhone bundled with useful apps. Almost half iPhone owners already finance their iPhone purchase, paying monthly for a new phone. And about one-third trade-in their old phone when they buy a new one. So, a significant portion of the user base is accustomed to never owning a phone, instead basically leasing it.”

Apple also gains. In this case, it benefits from potentially lower, but at least recurring, income upon which to balance its stock. And it benefits from the fact that at the end of the subscription period (or during it if the consumer cannot maintain payments), the devices will be returned for refurbishment, resale/let, and/or recycling.

This also opens up the highly lucrative second-user iPhone market, which is an income stream Apple hasn’t yet fully explored. The iPhone is the most widely sold smartphone on the second-user market and holds its value the longest; company management is said to have been eyeing whether they can extract more from those sales. 

At a special 50th anniversary event on Friday, Microsoft executives reflected on the company’s storied past and on how it’s now reinventing itself for an AI-focused future.

With previous CEOs Bill Gates and Steve Ballmer in attendance, current CEO Satya Nadella boasted that the company is “leading this new wave of AI innovation, and more importantly, democratizing just like we did it with the PC.”

Details about the company’s plans were laid out by Microsoft Executive Vice President Mustafa Suleyman, who noted that the ability to customize Windows to every person’s specific needs is coming. “Years ago, Bill laid out a bold ambition, which at the time probably felt like a pretty crazy dream — to put a PC on every desk and in every home.

Mozilla has decided to launch a challenger to Gmail called Thundermail. The upstart is a web-based email service based on the open-source project Stalwart, according to technology site Thurrott.

The plan is to eventually add support for calendar and contacts to Thundermail, but when that would happen remains to be seen.

Alongside the new email service, Mozilla is also launching Thunderbird Pro. It offers, among other things, an AI assistant, a file-sharing tool and a planning tool and can be seen as a complement to Thundermail.

Is this a problem? Yes, sometimes it is. The exercise of power without transparency is always problematic, and there’s a reason why democratic countries have laws requiring that important communications be documented and preserved. The latest “Signal Chat” is probably illegal for several reasons, at least on paper, and it would be in Sweden, too.

At the same time, it should be remembered that it is not the group chat technology itself that is the culprit here. Technology has just made it much easier to achieve what used to be done in other forums. In the same way that group chats between classmates have replaced phone chains, chatting with those in power is essentially a modern version of the old gentlemen’s clubs — now in your pocket. And technology or not, it is still possible for people in power to meet over lunch without any transparency.

However, group chat as a phenomenon remains interesting and I think that when future sociologists study how society and people’s social interaction and decision-making changed with digitalization, group chats will actually play a central role.

Google has built its AI infrastructure on its homegrown TPUs (Tensor Processing Units) — custom-built chips tuned to run Gemini. The TPUs are different from GPUs, which can run a wide range of AI, graphics and scientific applications.

The problems with surging demand are a reminder for enterprises to secure stable computing capacity to prevent AI downtimes, said Jim McGregor, principal analyst at Tirias Research. “The shift to images, video, agents…, it’s going to drive the demand for more AI compute resources for the foreseeable future,” he said.

OpenAI and Google are widely used by individuals and enterprises. Typically, it takes time for the hardware to catch up to efficiently operate new AI software, and unintended interruptions can affect productivity of companies, analysts said.