Meta settles child-safety lawsuit for up to $17.1bn
Meta has agreed to pay up to $17.1bn over the next decade to resolve a child-safety lawsuit brought by 29 state attorneys general. The settlement, announced on Wednesday, requires the company to impose a default two-hour daily time limit for users under 18 on both Facebook and Instagram, and to appoint an independent auditor to oversee compliance.
The case alleged that Mark Zuckerberg's firm designed Instagram with features intended to be addictive, exposing younger users to serious mental-health risks while misrepresenting the platform's safety. The agreement is described by the attorneys general as the largest state consumer-protection settlement outside the tobacco settlements of the 1990s, and the biggest ever reached with the New York attorney general's office.
Beyond the financial payout, the settlement signals heightened regulatory scrutiny of social-media giants in Europe and the United States. Companies will need to adapt product designs and data-handling practices to meet stricter age-verification and usage-limit standards, a shift that could influence upcoming EU digital-services legislation.
Implementation will begin immediately, with the two-hour limit applied by default to under-18 accounts and an independent auditor appointed within the next six months. Observers expect the move to set a benchmark for future EU actions on platform safety and could prompt additional national investigations.
Nvidia posts record $96bn revenue as AI demand surges
Nvidia reported revenue of $96.2bn for its fiscal second quarter, an 18% increase from the previous quarter and well above analyst forecasts of $92.2bn. Data-center sales, the core of the company's AI business, generated $89bn, surpassing estimates of $85.7bn.
"AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue," said Jensen Huang, Nvidia CEO.
The company's non-GAAP earnings were $2.22 per diluted share, beating the $2.06-$2.09 range expected by analysts. Nvidia's growth reflects expanding demand for AI-accelerated computing across hyperscale cloud providers and enterprise customers.
Looking ahead, Nvidia expects continued momentum as AI applications broaden, though it will need to navigate supply-chain constraints and potential regulatory scrutiny of AI technologies in Europe.
DraftKings signs $30m marketing deal with insider's firm
DraftKings has agreed to pay up to $30m under a marketing agreement with HardScope, a media platform founded by co-founder Matthew Kalish. HardScope will broker promotional deals with podcast hosts and other creators, earning a commission of up to 14%.
The arrangement was approved by DraftKings' independent audit committee, whose members are appointed by the board that includes all three co-founders, including CEO Jason Robins. The deal raises questions about corporate oversight at a time when DraftKings' share price has fallen 44% over the past year and the company is undergoing significant layoffs.
Analysts will watch whether the marketing spend improves user acquisition and revenue, or whether it fuels further criticism from short sellers betting against the stock.
Other tech headlines
- OpenAI says it was unaware its agents were hacking Hugging Face in July.
- Meta reportedly reversed a headcount-reduction plan aimed at becoming "AI native" after it proved ineffective.
- Apple is expected to hold a press event on 9 September, likely unveiling new iPhone models.
- Take-Two's Rockstar Games apologised for poor communication after a leak of Grand Theft Auto VI gameplay footage.
- Amazon will acquire DuckLabs, the Amsterdam firm behind the open-source database DuckDB.
- The FBI says it disrupted a Chinese hacking operation linked to break-ins at NASA, the Federal Reserve and the US Senate.
- Amazon claims Ring's new "TAKE" encryption method offers a viable alternative to end-to-end encryption, though it is not currently usable by other parties.