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'We're so used to relying on technology.' Hospitals, airlines, agency operations around New England hampered by software outage.
Blue screen of death on display (David Ryan/Getty Images)

When in doubt, blame Europe: Microsoft pins fault for CrowdStrike fiasco on the EU

J'accuse!

If you were unfortunate enough to spend last weekend in an airport, your travel plans were probably wrecked by a widespread “blue screen of death” mishap that shut down 8.5 million Windows-powered devices, causing US airlines to cancel more than 5,000 flights on Friday and Saturday. The cause of the computer outage was a faulty software update pushed by cybersecurity provider Crowdstrike to Microsoft devices, and Microsoft blamed the system vulnerability that caused this software issue on a 2009 agreement with the EU. From The Telegraph:

Microsoft has blamed EU rules for enabling a faulty security update to cause the world’s biggest IT outage. The software giant said a 2009 agreement with the European Commission meant it was unable to make security changes that would have blocked the CrowdStrike update that triggered widespread travel and healthcare chaos on Friday.

CrowdStrike’s Falcon system, designed to prevent cyber attacks, has privileged access to a key part of a computer known as the kernel. This meant that a faulty update last week resulted in millions of Windows computers and servers being unable to load at all, leading to flight cancellations, contactless payments not working and GP surgeries being unable to make appointments.

Microsoft, which offers its own alternative to CrowdStrike known as Windows Defender, agreed in 2009 to allow multiple security providers to install software at the kernel level amid a European competition investigation.

In contrast, Apple blocked access to the kernel on its Mac computers in 2020, which it said would improve security and reliability. A Microsoft spokesman told the Wall Street Journal that it was unable to make a similar change because of the EU agreement.

For context, the “kernel” is a computer program at the core of its operating system, and buggy software updates that interact with an operating system’s kernel can, as we saw with Crowdstrike, wreak havoc on devices using that OS. Apple runs a closed operating system, locking third-party software providers out of its kernel, which safeguards its devices from incidents like this.

I wrote last week about the EU’s obsession with obscene fines for US big tech companies, so it’s fitting that Microsoft is now blaming European regulators for its 8.5 million device failure. Ben Thompson provided excellent background to Microsoft’s explanation:

Two of the companies seizing this opportunity in the 2000s were Symantec and McAfee; both reacted with outrage in 2005 and 2006 when Microsoft, in the run-up to the release of Windows Vista, introduced PatchGuard. PatchGuard was aptly named: it guarded the kernel from being patched by 3rd-parties, with the goal of increasing security…

Symantec, meanwhile, went straight to E.U. regulators, making the case that Microsoft, already in trouble over its inclusion of Internet Explorer in the 90s, and Windows Media Player in the early 2000s, was unfairly limiting competition for security offerings. The E.U. agreed and Microsoft soon backed down.

Basically, Microsoft wanted to lock third-party security software providers out of its kernel, two of said software providers cried “anti-competitive!” EU regulators agreed, and Microsoft dropped its efforts to block kernel access. Eighteen years later, a security software provider with kernel access pushed an update that shutdown millions of computers, which wouldn’t have happened if that software provider didn’t have kernel access. The EU, for what it's worth, denied responsibility for the computer failure.

Considering that 72% of global desktop computers run on Microsoft operating systems, it will be interesting to see if the tech giant can leverage the Crowdstrike bug to reverse the EU’s open-OS stance on Windows.

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Ahead of Musk’s pay package vote, Tesla’s board says they can’t make him work there full time

Ahead of Tesla’s CEO compensation vote at its annual shareholder meeting tomorrow, The Wall Street Journal did a deep dive into how Elon Musk, who stands to gain $1 trillion if he stays at Tesla and hits a number of milestones, spends his time.

Like a similar piece from The New York Times in September, this one has a lot of fun details. Read it all, but here are some to tide you over:

  • Musk spent so much time at xAI this summer that he held meetings there with Tesla employees.

  • He personally oversaw the design of a sexy chatbot named Ani, who sports pigtails and skimpy clothes and for whom “employees were compelled to turn over their biometric data” to train.

  • The chatbot, which users can ask to “change into lingerie or fantasize about a romantic encounter with them,” has helped boost user numbers, which are still way lower than ChatGPT’s.

  • Executives and board members have told top investors in the past few weeks that they can’t make Musk work at Tesla full time. Board Chair Robyn Denholm explained that in his free time, Musk “likes to create companies, and they’re not necessarily Tesla companies.”

Like a similar piece from The New York Times in September, this one has a lot of fun details. Read it all, but here are some to tide you over:

  • Musk spent so much time at xAI this summer that he held meetings there with Tesla employees.

  • He personally oversaw the design of a sexy chatbot named Ani, who sports pigtails and skimpy clothes and for whom “employees were compelled to turn over their biometric data” to train.

  • The chatbot, which users can ask to “change into lingerie or fantasize about a romantic encounter with them,” has helped boost user numbers, which are still way lower than ChatGPT’s.

  • Executives and board members have told top investors in the past few weeks that they can’t make Musk work at Tesla full time. Board Chair Robyn Denholm explained that in his free time, Musk “likes to create companies, and they’re not necessarily Tesla companies.”

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Motion Picture Association to Meta: Stop saying Instagram teen content is “PG-13”

In October, Meta announced that its updated Instagram Teen Accounts would by default limit content to the “PG-13” rating.

The Motion Picture Association, which created the film rating standard, was not happy about Meta’s use of the rating, and sent the company a cease and desist letter, according to a report from The Wall Street Journal.

The letter from MPA’s law firm reportedly said the organization worked for decades to earn the public’s trust in the rating system, and it does not want Meta’s AI-powered content moderation failures to blow back on its work:

“Any dissatisfaction with Meta’s automated classification will inevitably cause the public to question the integrity of the MPA’s rating system.”

Meta told the WSJ that it never claimed or implied the content on Instagram Teen Accounts would be certified by the MPA.

The letter from MPA’s law firm reportedly said the organization worked for decades to earn the public’s trust in the rating system, and it does not want Meta’s AI-powered content moderation failures to blow back on its work:

“Any dissatisfaction with Meta’s automated classification will inevitably cause the public to question the integrity of the MPA’s rating system.”

Meta told the WSJ that it never claimed or implied the content on Instagram Teen Accounts would be certified by the MPA.

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Dan Ives expects “overwhelming shareholder approval” of Tesla CEO pay package

Wedbush Securities analyst Dan Ives, like prediction markets, thinks Tesla CEO Elon Musk’s $1 trillion pay package will receive “overwhelming shareholder approval” at the company’s annual shareholder meeting Thursday afternoon. The Tesla bull, like the Tesla board, has maintained that approval of the performance-based pay package is integral to keeping Musk at the helm of the company, which in turn is integral to the success of the company. Ives is also confident that investors will back the proposal allowing Tesla to invest in another of Musk’s companies, xAI.

“We expect shareholders to show overwhelming support tomorrow for Musk and the xAI stake further turning Tesla into an AI juggernaut with the autonomous and robotics future on the horizon,” Ives wrote in a note this morning.

The compensation package has received pushback, including from Tesla’s sixth-biggest institutional investor, Norway’s Norges Bank Investment Management, and from proxy adviser Institutional Shareholder Services.

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Tesla has a new EV, robotaxi, humanoid robot, AI chip, and flying car competitor

An electric vehicle maker is not content to merely manufacture cars, but has far greater ambitions that involve robotaxis, humanoid robots, and even flying cars.

Sound familiar? It’s not Tesla.

Rather, Nasdaq-listed Chinese EV maker XPeng announced that next year it will launch three robotaxis made with in-house AI chips and begin mass production of its humanoid robots. It’s also developing a flying car — a concept Tesla CEO Elon Musk has only hinted at.

Tesla has been facing increased competition from Chinese automakers like XPeng and BYD, though neither can sell in the US — and neither has a Musk. Still, XPeng Co-President Brian Gu seems to share some of his gumption. “We didn’t want to be a traditional automaker or EV maker from the very beginning,” Gu said. “The future of cars is not electrification, but intelligence.”

Tesla has been facing increased competition from Chinese automakers like XPeng and BYD, though neither can sell in the US — and neither has a Musk. Still, XPeng Co-President Brian Gu seems to share some of his gumption. “We didn’t want to be a traditional automaker or EV maker from the very beginning,” Gu said. “The future of cars is not electrification, but intelligence.”

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Google and “Fortnite” maker Epic agree to settlement over app store reforms

Google and “Fortnite” maker Epic Games have proposed a settlement to end their long-running app store dispute. The deal would let Android users more easily download third-party app stores and allow developers to use alternative payment methods both within apps and through external web links, with capped fees of 9% or 20%. After Epic won a 2023 jury trial, US District Judge James Donato issued an injunction ordering Google to open the Play app store to competition; the same judge must approve the new agreement.

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