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Since launching in the United States five years ago, SmartNews, the news aggregation app that recently hit unicorn status, has quietly built a reputation for presenting reliable information from a wide range of publishers. The company straddles two very different markets: the U.S. and its home country of Japan, where it is one of the leading news apps.
SmartNews wants readers to see it as a way to break out of their filter bubbles, says Jeannie Yang, its senior vice president of product, especially as the American presidential election heats up. For example, it recently launched a feature, called “News From All Sides,” that lets people see how media outlets from across the political spectrum are covering a specific topic.
The app is driven by machine-learning algorithms, but it also has an editorial team led by Rich Jaroslovsky, the first managing editor of WSJ.com and founder of the Online News Association. One of SmartNews’ goal is to surface news that its users might not seek out on their own, but it must balance that with audience retention in a market that is crowded with many ways to consume content online, including competing news aggregation apps, Facebook and Google Search.
In a wide-ranging interview with Extra Crunch, Yang talked about SmartNews’ place in the media ecosystem, creating recommendation algorithms that don’t reinforce biases, the difference between its Japanese and American users and the challenges of presenting political news in a highly polarized environment.
Catherine Shu: One of the reasons why SmartNews is interesting is because there are a lot of news aggregation apps in America, but there hasn’t been one huge breakout app like SmartNews is in Japan or Toutiao in China. But at the same time, there are obviously a lot of issues in the publishing and news industry in the United States that a good dominant news app might be able to help, ranging from monetization to fake news.
Jeannie Yang: I think that’s definitely a challenge for everybody in the U.S. With SmartNews, we really want to see how we can help create a healthier media ecosystem and actually have publishers thrive as well. SmartNews has such respect for the publishers and the industry and we want to be good partners, but also really understand the challenges of the business model, as well as the challenges for users and thinking of how we can create a healthier ecosystem.
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Chinese social media and gaming giant Tencent is taking a 29% stake to become the largest shareholder in Oslo-based Funcom.
The indie games developer is responsible for multiple adaptations involving the “Conan the Barbarian” franchise, such as “Age of Conan” and “Conan Exiles,” as well as a number of other multiplayer titles — including a forthcoming open world sandbox game that will be set in the “Dune” sci-fi universe.
The news that Tencent has entered into a share purchase agreement to acquire almost a third of the company was announced in a press release today. The Chinese giant has agreed to acquire all the shares belonging to the Norway-based KGJ Capital AS, which is currently the largest shareholder in Funcom.
Commenting in a statement, Funcom CEO Rui Casais said: “Tencent has a reputation for being a responsible long-term investor, and for its renowned operational capabilities in online games. The insight, experience, and knowledge that Tencent will bring is of great value to us and we look forward to working closely with them as we continue to develop great games and build a successful future for Funcom.”
Tencent, which has a substantial games operation of its own, also holds stakes in a number of other major games makers — including Riot Games, Epic, Supercell, Ubisoft, Paradox, Frontier and Miniclip.
A prolonged games licensing freeze in China dented Tencent’s profits last year. And earlier this year, while it reported record profits in its Q1, it also recorded its slowest revenue growth since going public.
Regulatory risk at home is one reason for Tencent to expand its stakes in overseas games developers and tap into a global audience to stoke growth.
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Alibaba Group introduced its first AI inference chip today, a neural processing unit called Hanguang 800 that it says makes performing machine learning tasks dramatically faster and more energy efficient. The chip, announced today during Alibaba Cloud’s annual Apsara Computing Conference in Hangzhou, is already being used to power features on Alibaba’s e-commerce sites, including product search and personalized recommendations. It will be made available to Alibaba Cloud customers later.
As an example of what the chip can do, Alibaba said it usually takes Taobao an hour to categorize the one billion product images that are uploaded to the e-commerce platform each day by merchants and prepare them for search and personalized recommendations. Using Hanguang 800, Taobao was able to complete the task in only five minutes.
Alibaba is already using Hanguang 800 in many of its business operations that need machine processing. In addition to product search and recommendations, this includes automatic translation on its e-commerce sites, advertising and intelligence customer services.
Though Alibaba hasn’t revealed when the chip will be available to its cloud customers, the chip may help Chinese companies reduce their dependence on U.S. technology as the trade war makes business partnerships between Chinese and American tech companies more difficult. It also can help Alibaba Cloud grow in markets outside of China. Within China, it is the market leader, but in the Asia-Pacific region, Alibaba Cloud still ranks behind Amazon, Microsoft and Google, according to the Synergy Research Group.
Hanguang 800 was created by T-Head, the unit that leads the development of chips for cloud and edge computing within Alibaba DAMO Academy, the global research and development initiative in which Alibaba is investing more than $15 billion. T-Head developed the chip’s hardware and algorithms designed for business apps, including Alibaba’s retail and logistics apps.
In a statement, Alibaba Group CTO and president of Alibaba Cloud Intelligence Jeff Zhang (pictured above) said, “The launch of Hanguang 800 is an important step in our pursuit of next-generation technologies, boosting computing capabilities that will drive both our current and emerging businesses while improving energy-efficiency.”
He added, “In the near future, we plan to empower our clients by providing access through our cloud business to the advanced computing that is made possible by the chip, anytime and anywhere.”
T-Head’s other launches included the XuanTie 910 earlier this year, an IoT processor based on RISC-V, the open-source hardware instruction set that began as a project at UC Berkeley. XuanTie 910 was created for heavy-duty IoT applications, including edge servers, networking, gateway and autonomous vehicles.
Alibaba DAMO Academy collaborates with universities around the world, including UC Berkeley and Tel Aviv University. Researchers in the program focus on machine learning, network security, visual computing and natural language processing, with the goal of serving two billion customers and creating 100 million jobs by 2035.
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A recently revealed mobile malware campaign targeting Uyghur Muslims also ensnared a number of senior Tibetan officials and activists, according to new research.
Security researchers at the University of Toronto’s Citizen Lab say some of the Tibetan targets were sent specifically tailored malicious web links over WhatsApp, which, when opened, could have stealthily gained full access to their phone, installed spyware and silently stole private and sensitive information.
The exploits shared “technical overlaps” with a recently disclosed campaign targeting Uyghur Muslims, an oppressed minority in China’s Xinjiang state. Google last month disclosed the details of the campaign, which targeted iPhone users, but did not say who was targeted or who was behind the attack. Sources told TechCrunch that Beijing was to blame. Apple, which patched the vulnerabilities, later confirmed the exploits targeted Uyghurs.
Although Citizen Lab would not specify who was behind the latest round of attacks, the researchers said the same group targeting both Uyghurs and Tibetans also utilized Android exploits. Those exploits, recently disclosed and detailed by security firm Volexity, were used to steal text messages, contact lists and call logs, as well as watch and listen through the device’s camera and microphone.
It’s the latest move in a marked escalation of attacks on ethnic minority groups under surveillance and subjection by Beijing. China has long claimed rights to Tibet, but many Tibetans hold allegiance to the country’s spiritual leader, the Dalai Lama. Rights groups say China continues to oppress the Tibetan people, just as it does with Uyghurs.
A spokesperson for the Chinese consulate in New York did not return an email requesting comment, but China has long denied state-backed hacking efforts, despite a consistent stream of evidence to the contrary. Although China has recognized it has taken action against Uyghurs on the mainland, it instead categorizes its mass forced detentions of more than a million Chinese citizens as “re-education” efforts, a claim widely refuted by the west.
The hacking group, which Citizen Lab calls “Poison Carp,” uses the same exploits, spyware and infrastructure to target Tibetans as well as Uyghurs, including officials in the Dalai Lama’s office, parliamentarians and human rights groups.
Bill Marczak, a research fellow at Citizen Lab, said the campaign was a “major escalation” in efforts to access and sabotage these Tibetans groups.
In its new research out Tuesday and shared with TechCrunch, Citizen Lab said a number of Tibetan victims were targeted with malicious links sent in WhatsApp messages by individuals purporting to work for Amnesty International and The New York Times. The researchers obtained some of those WhatsApp messages from TibCERT, a Tibetan coalition for sharing threat intelligence, and found each message was designed to trick each target into clicking the link containing the exploit. The links were disguised using a link-shortening service, allowing the attackers to mask the full web address but also gain insight into how many people clicked on a link and when.
“The ruse was persuasive,” the researchers wrote. During a week-long period in November 2018, the targeted victims opened more than half of the attempted infections. Not all were infected, however; all of the targets were running non-vulnerable iPhone software.
One of the specific social engineering messages, pretending to be an Amnesty International aid worker, targeting Tibetan officials (Image: Citizen Lab/supplied)
The researchers said tapping on a malicious link targeting iPhones would trigger a chain of exploits designed to target a number of vulnerabilities, one after the other, in order to gain access to the underlying, typically off-limits, iPhone software.
The chain “ultimately executed a spyware payload designed to steal data from a range of applications and services,” said the report.
Once the exploitation had been achieved, a spyware implant would be installed, allowing the attackers to collect and send data to the attackers’ command and control server, including locations, contacts, call history, text messages and more. The implant also would exfiltrate data, like messages and content, from a hardcoded list of apps — most of which are popular with Asian users, like QQMail and Viber.
Apple had fixed the vulnerabilities months earlier (in July 2018); they were later confirmed as the same flaws found by Google earlier this month.
“Our customers’ data security is one of Apple’s highest priorities and we greatly value our collaboration with security researchers like Citizen Lab,” an Apple spokesperson told TechCrunch. “The iOS issue detailed in the report had already been discovered and patched by the security team at Apple. We always encourage customers to download the latest version of iOS for the best and most current security enhancements.”
Meanwhile, the researchers found that the Android-based attacks would detect which version of Chrome was running on the device and would serve a matching exploit. Those exploits had been disclosed and were “obviously copied” from previously released proof-of-concept code published by their finders on bug trackers, said Marczak. A successful exploitation would trick the device into opening Facebook’s in-app Chrome browser, which gives the spyware implant access to device data by taking advantage of Facebook’s vast number of device permissions.
The researchers said the code suggests the implant could be installed in a similar way using Facebook Messenger, and messaging apps WeChat and QQ, but failed to work in the researchers’ testing.
Once installed, the implant downloads plugins from the attacker’s server in order to collect contacts, messages, locations and access to the device’s camera and microphone.
When reached, Google did not comment. Facebook, which received Citizen Lab’s report on the exploit activity in November 2018, did not comment at the time of publication.
“From an adversary perspective what makes mobile an attractive spying target is obvious,” the researchers wrote. “It’s on mobile devices that we consolidate our online lives and for civil society that also means organizing and mobilizing social movements that a government may view as threatening.”
“A view inside a phone can give a view inside these movements,” they said.
The researchers also found another wave of links trying to trick a Tibetan parliamentarian into allowing a malicious app access to their Gmail account.
Citizen Lab said the threat from the mobile malware campaign was a “game changer.”
“These campaigns are the first documented cases of iOS exploits and spyware being used against these communities,” the researchers wrote. But attacks like Poison Carp show mobile threats “are not expected by the community,” as shown by the high click rates on the exploit links.
Gyatso Sither, TibCERT’s secretary, said the highly targeted nature of these attacks presents a “huge challenge” for the security of Tibetans.
“The only way to mitigate these threats is through collaborative sharing and awareness,” he said.
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Flipkart, the largest e-commerce platform in India, said Tuesday it has concluded the roll-out of a range of features to its shopping app in what is its biggest update in recent years.
Chief among these new features is access to Flipkart in Hindi language. Prior to the revamp of the app, Flipkart was available only in English, a language spoken by 10% of India’s 1.3 billion population.
Flipkart says it is hoping that the new features, which includes a video streaming service, would help it reach the next 200 million users in India.
The major bet on Hindi, a language spoken by more than 500 million people in India, illustrates a growing push from local and international companies operating in the country as they adapt their services and business models to go beyond the urban cities.
And that’s where much of the opportunity, which countless startups and companies have trumpeted to investors to successfully raise hundreds of millions of dollars in debt and venture capital in recent years, lies in the nation.
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Zhihu may not be as well known outside of China as WeChat or ByteDance’s Douyin, but over the past eight years, it has cultivated a reputation for being one of the country’s most trustworthy social media platforms. Originally launched as a question-and-answer site similar to Quora, Zhihu has grown to be a central hub for professional knowledge, allowing users to interact with experts and companies in a wide range of industries.
Headquartered in Beijing, Zhihu recently raised a $434 million Series F, its biggest round since 2011. The funding also brought Zhihu two important new partners: video and live-streaming app Beijing Kuaishou, which led the round, and Baidu, owner of China’s largest search engine (other participants in the round included Tencent and CapitalToday).
Launched in 2011, Zhihu (the name means “do you know”) is most frequently compared to Quora and Yahoo Answers. While it resembled those Q&A platforms at first, it has grown in scope. Now it would be more accurate to say that the platform is like a combination of Quora, LinkedIn and Medium’s subscription program.
For example, Zhihu has an invitation-only blogging platform for verified experts and since launching official accounts, it has become a channel for companies and organizations to communicate with users. A representative for Zhihu told TechCrunch that the platform had 220 million users and 30,000 official accounts as of January 2019 (for context, there are currently about 800 million Internet users in China), who have posted a total of 130 million answers so far.
The company’s growth will be closely watched since Zhihu is reportedly preparing for an initial public offering. Last November, the company hired its first chief financial officer, Sun Wei, heightening speculation. A representative for the company told TechCrunch the position was created because of Zhihu’s business development needs and that there is currently no timeline for a public listing.
At the same time, the company has also dealt with reports that its growth has slowed.
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Megvii Technology, the Beijing-based artificial intelligence startup known in particular for its facial recognition brand Face++, has filed for a public listing on the Hong Kong stock exchange.
Its prospectus did not disclose share pricing or when the IPO will take place, but Reuters reports that the company plans to raise between $500 million and $1 billion and list in the fourth quarter of this year. Megvii’s investors include Alibaba, Ant Financial and the Bank of China. Its last funding round was a Series D of $750 million announced in May that reportedly brought its valuation to more than $4 billion.
Founded by three Tsinghua University graduates in 2011, Megvii is among China’s leading AI startups, with its peers (and rivals) including SenseTime and Yitu. Its clients include Alibaba, Ant Financial, Lenovo, China Mobile and Chinese government entities.
The company’s decision to list in Hong Kong comes against the backdrop of an economic recession and political unrest, including pro-democracy demonstrations, factors that have contributed to a slump in the value of the benchmark Hang Seng index. Last month, Alibaba reportedly decided to postpone its Hong Kong listing until the political and economic environment becomes more favorable.
Megvii’s prospectus discloses both rapid growth in revenue and widening losses, which the company attributes to changes in the fair value of its preferred shares and investment in research and development. Its revenue grew from 67.8 million RMB in 2016 to 1.42 billion RMB in 2018, representing a compound annual growth rate of about 359%. In the first six months of 2019, it made 948.9 million RMB. Between 2016 and 2018, however, its losses increased from 342.8 million RMB to 3.35 billion RMB, and in the first half of this year, Megvii has already lost 5.2 billion RMB.
Investment risks listed by Megvii include high R&D costs, the U.S.-China trade war and negative publicity over facial recognition technology. Earlier this year, Human Rights Watch published a report that linked Face++ to a mobile app used by Chinese police and officials for mass surveillance of Uighurs in Xinjiang, but it later added a correction that said Megvii’s technology had not been used in the app. Megvii’s prospectus alluded to the report, saying that in spite of the correction, the report “still caused significant damages to our reputation which are difficult to completely mitigate.”
The company also said that despite internal measures to prevent misuse of Megvii’s tech, it cannot assure investors that those measures “will always be effective,” and that AI technology’s risks and challenges include “misuse by third parties for inappropriate purposes, for purposes breaching public confidence or even violate applicable laws and regulations in China and other jurisdictions, bias applications or mass surveillance, that could affect user perception, public opinions and their adoption.”
From a macroeconomic perspective, Megvii’s investment risks include the restrictions and tariffs placed on Chinese exports to the U.S. as part of the ongoing trade war. It also cited reports that Megvii is among the Chinese tech companies the U.S. government may add to trade blacklists. “Although we are not aware of, nor have we received any notification, that we have been added as a target of any such restrictions as of the date this Document, the existence of such media reports itself has already damaged our reputation and diverted our management’s attention,” the prospectus said. “Whether or not we will be included as a target for economic and trade restrictions is beyond our control.”
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After his tenure as chief scientist at Baidu, Andrew Ng, the founder of the Google Brain project and former CEO of Coursera, set up a number of different projects that all focus on making AI more approachable. These include the education startup Deeplearning.ai, the AI Fund startup studio for building AI companies and Landing.ai, which helps enterprises (and especially manufacturing companies) use AI. Today, Ng announced he has opened a second office for these projects in Medellin, Colombia.
At first, Medellin may seem like an odd choice. But today’s Medellin is very different from the one you may have seen on Narcos (and a lot safer). It’s home to a number of universities and, over the course of the last few years, it’s a hub for Colombia’s startup scene thanks to incubators like Ruta N and others.
Ng told me that he chose Medellin after looking at a wide range of cities in Europe, Asia and Latin America. Medellin, he believes, offers a strong talent pool, educational system and business ecosystem. It also helps that the Colombia government has made tech a focus in recent years.
“I see early signs of momentum for Colombia being a talent magnet both regionally and globally,” he told me. Indeed, the company was able to hire team members from Poland, Bangladesh, Egypt and Chile for its offices in Medellin, which now has just under 50 people. Over the course of the next two years, Ng plans to expand this team to between 150 and 200 employees.
It’s important, Ng argues, that we set up AI hubs outside of Silicon Valley and China, in part, because they’ll provide a different perspective. “We are able to share our AI ecosystem and Silicon Valley know-how with Medellín,” he writes in today’s announcement. “We’re equally thrilled for our Silicon Valley team to be learning from the Medellín community. Local knowledge and innovation shared with a global community is what will catapult the technology forward.”
The teams in Medellin will work on all of Ng’s projects, including four unannounced stealth portfolio companies that are looking into using AI in sectors like healthcare, education and customer support. In total, the teams in Medellin are working on about a dozen projects right now. And that’s very much Ng’s approach to AI — and for Landing.ai in particular: build lots of specialized components for various verticals that can then be generalized. “AI isn’t some piece of SaaS software that everybody can just swipe their credit card and use,” he said.
Andrew Ng will also join us for our first TechCrunch Sessions: Enterprise event in San Francisco on September 5 to talk about Landing.ai and the future of AI in general. You can find more information about the event (and buy tickets) here.
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Update: Trump confirmed to reporters that the delay is due to timing for the holiday shopping season. “We’re doing this for the Christmas season,” he said. “Just in case some of the tariffs would have an impact on U.S. customers.”
Electronics manufacturers are no doubt breathing a collective sigh of relief this morning at the news that the United States Trade Representative (USTR) has delayed tariffs on a number of categories.
A long list of exports, including livestock, foodstuff and clothing will have the additional 10% tariff imposed on September 1. Others, including “cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing” have simply been delayed until December 15.
It seems the fees are an inevitability, but many might be able to scrape through just in time for the holidays.
“Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent,” the USTR writes. “Further, as part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles.”
That list includes a wide range of electronics, from “telephones for cellular networks or for other wireless networks” to “telephone answering machines” and “cassette players (non‐recording) designed exclusively for motor‐vehicle installation.”
Stock prices for companies like Apple have already seen a positive bump following the news. The White House is expected to have additional trade talks with China next month in Washington, though President Trump has since cast some doubt.
Asked by reporters whether he might cancel the talks, the president answered, “Maybe. We’ll see what happens.”
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If making an Android alternative was easy, we’d have a lot more of them. Huawei’s HarmonyOS won’t be replacing the mobile operating system for the company anytime soon, and Huawei has made it pretty clear that it would much rather go back to working with Google than go it alone.
Of course, that might not be an option.
The truth is that Huawei and Google were actually getting pretty chummy. They’d worked together plenty, and according to recent rumors, were getting ready to release a smart speaker in a partnership akin to what Google’s been doing with Lenovo in recent years. That was, of course, before Huawei was added to a U.S. “entity list” that ground those plans to a halt.
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