Year: 2019

26 Feb 2019

Huawei: “The US security accusation of our 5G has no evidence. Nothing.”

Huawei’s rotating chairman Guo Ping kicked off a keynote speech this morning at the world’s biggest mobile industry tradeshow with a wry joke. “There has never been more interest in Huawei,” he told delegates at Mobile World Congress. “We must be doing something right!”

The Chinese company is seeking to dispel suspicion around the security of its 5G network equipment which has been accelerated by U.S. president Trump who has been urging U.S. allies not to buy kit or services from Huawei. (And some, including Australia, have banned carriers from using Huawei kit.)

Last week Trump also tweet-shamed U.S. companies — saying they needed to step up their efforts to rollout 5G networks or “get left behind”.

In an MWC keynote speech yesterday the European Commission’s digital commissioner Mariya Gabriel also signalled the executive is prepared to step in and regulate to ensure a “common approach” on the issue of network security — to avoid the risk of EU member states taking individual actions that could delay 5G rollouts across Europe.

Huawei appeared to welcome the prospect today.

“Government and the mobile operators should work together to agree what this assurance testing and certification rating for Europe will be,” said Guo, suggesting that’s Huawei’s hope for any Commission action on 5G security.

“Let experts decide whether networks are safe or not,” he added, implying Trump is the opposite of an expert. “Huawei has a strong track record in security for three decades. Serving three billion people around the world. The U.S. security accusation of our 5G has no evidence. Nothing.”

Geopolitical tensions about network security have translated into the biggest headache for Huawei which has positioned itself as a key vendor for 5G kit right as carriers are preparing to upgrade their existing cellular networks to the next-gen flavor.

Guo claimed today that Huawei is “the first company who can deploy 5G networks at scale”, giving a pitch for what he described as “powerful, simple and intelligent” next-gen network kit while clearly enjoying the opportunity of being able to agree with U.S. president Trump in public — that “the U.S. needs powerful, faster and smarter 5G”.

But any competitive lead in next-gen network tech also puts the company in prime position for political blowback linked to espionage concerns related to the Chinese state’s access to data held or accessed by commercial companies.

Huawei’s strategy to counter this threat has been to come out fighting for its commercial business — and it had plenty more of that spirit on show this morning. As well as a bunch of in-jokes. Most notably a reference to NSA whistleblower Edward Snowden which drew a knowing ripple of laughter from the audience.

“We understand innovation is nothing without security,” said Guo, segwaying from making a sales pitch for Huawei’s 5G network solutions straight into the giant geopolitical security question looming over the conference.

“Prism, prism on the wall who is the most trustworthy of them all?” he said. “It’s a very important question. And if you don’t ask them that you can go ask Edward Snowden.”

You can’t use “a crystal ball to manage cybersecurity”, Guo went on, dubbing it “a challenge we all share” and arguing that every player in the mobile industry has responsibility to defuse the network security issue — from kit vendors to carriers and standards bodies, as well as regulators.

“With 5G we have made a lot of progress over 4G and we can proudly say that 5G is safer than 4G. As a vendor we don’t operate carriers network, and we don’t all carry data. Our responsibility — what we promise — is that we don’t do anything bad,” he said. “We don’t do bad things.”

“Let me says this as clear as possible,” he went on, putting up another slide that literally underlined the point. “Huawei has not and will never plant backdoors. And we will never allow anyone to do so in our equipment.

“We take this responsibility very seriously.”

Guo’s pitch on network trust and security was to argue that where 5G networks are concerned security is a collective industry responsibility — which in turn means every player in the chain plays a monitoring role that allows for networks to be collectively trusted.

“Carriers are responsible for secure operations of their own networks. 5G networks are private networks. The boundary between different networks are clear. Carriers can prevent outside attacks with firewalls and security gateways. For internal threats carriers can manage, monitor and audit all vendors and partners to make sure their network elements are secure,” he said, going on to urge the industry to work together on standards which he described as “our shared responsibility”.

“To build safer networks we need to standardize cybersecurity requirements and these standards must be verifiable for all vendors and all carriers,” he said, adding that Huawei “fully supports” the work of industry standards and certification bodies the GSMA and 3GPP who he also claimed have “strong capabilities to verify 5G’s security”.

Huawei’s strategy to defuse geopolitical risk by appealing to the industry as a whole to get behind tackling the network trust issue is a smart one given the uncertainty generated by Trump’s attacks is hardly being welcomed by players in the mobile business.

Huawei’s headache might lead to the mobile industry as a whole catching a cold — and no one at MWC wants that.

Later in the keynote Guo also pointed to the awkward “irony” of the U.S Cloud Act — given the legislation allows US entities to “access data across borders”.

U.S. overreach on accessing the personal data of foreign citizens continues to cause major legal headaches in Europe as a result of the clash between its national security interest and EU citizens fundamental privacy rights. So his point there won’t have been lost on an MWC audience packed with European delegates attending the annual tradeshow in Barcelona.

“So for best technology and greater security choose Huawei. Please choose Huawei,” Guo finished, ending his keynote with a line that could very well make it as a new marketing slogan writ large on one of the myriad tech-packed booths here at Fira Gran Via.

26 Feb 2019

HTC’s blockchain phone can now be purchased with fiat currency

Until now, the Exodus 1 has, fittingly, only been available for purchase with cryptocurrency. Starting today, however, interested parties will be able to pick HTC’s blockchain phone up through more traditional means, including USD, which prices the handset at a not unreasonable $699.

One assumes, of course, if you’ve got enough of an interested in purchasing a blockchain phone that they’ve already got a bit of Bitcoin, Ether or Litecoin lying about. This move, however, is very clearly about helping growing the product beyond its initial soft launch. When the device was released last year, HTC was pretty clearly expecting to sell it in limited quantities to users who could essentially help beta test the product in the wild.

HTC Decentralized Chief Officer Phil Chen calls the product the company’s 1.0 solution. In fact, it’s planning to create a formal bounty program to discover and patch potential exploits.

But HTC has long held that a device like this will play an important role in the future of a company struggling to find its way as it feels the burn of a stagnating mobile industry. As project head and Chen told me on stage at a TechCrunch event  in Shenzhen last year that HTC is “as committed as they are to the Vive. I don’t think it’s number one of the priority list, but I would say it’s number three or four.”

When I spoke to Chen again this month, just ahead of today’s Mobile World Congress announcement, he told me that HTC currently has 25 engineers committed to the project. It’s perhaps not a huge number in the grand scheme of a company the size of HTC, but it’s a sizable chunk of manpower, considering the fact that the product is mostly built using existing HTC hardware. The company has also brought in outside help like blockchain security expert Christopher Allen to make sure things are as secure as possible.

And indeed, I’ve been carrying an Exodus One around for about a week now, and it feels like a pretty standard HTC handset, both in terms of hardware and Android software, right down to the inclusion the size-squeezing Edge Sense.

26 Feb 2019

Walmart acquires Israel’s Aspectiva, which analyses UGC to recommend products to shoppers

Walmart, the world’s biggest brick-and-mortar retailer, today made an acquisition that speaks to its ongoing efforts to build out its e-commerce experience to better compete with Amazon. Today, the company announced that it acquired Aspectiva, a startup out of Israel whose AI-based technology analyses user-generated content, like customers’ product reviews, and combines it with a shopper’s browsing behavior to make product suggestions to shoppers both online and in stores.

The startup will be joining Store No 8, Walmart’s in-house incubation arm established in 2017 to help the company develop and roll out more innovative shopping experiences. Store No 8 most recently launched a VR shopping experience “startup” called Spatial&, and last year it started a closed beta Jetblack, a text-based shopping concierge service for “busy moms.”

It’s not clear yet whether this will mean Aspectiva will build a standalone service or work on tech that Walmart will roll out across its own stores both offline and online. You could see where Walmart might be able to incorporate its tech to make the shopping experience in both scenarios less static as the startup already works across both.

Some of its products include tech that analyses what in-store shoppers search for on their phones or in store apps while walking around, to suggest what to buy. Aspectiva also crunches product reviews to provide customer overviews to online browsers based on different features of a product, and it also creates comparison reports between different brands of the same product — all from “reading” feedback from other shoppers.

Terms of the deal have not been disclosed by the companies but we’re trying to find out. Aspectiva had raised around $4 million in funding from investors that included KDDI and Global Brain out of Japan, JVP, as well as strategic backers LivePerson and online skate shop Union Five, according to Pitchbook.

Aspectiva was co-founded by Eyal Hurwitz and Ezra Daya, two text analytics engineer alums from CRM company Nice Systems. It looks like the whole team will be joining Walmart, but will continue to be based in Tel Aviv, in its existing offices.

“Our team is extremely excited to be joining Store N° 8 and be part of Walmart’s most recent investment in Israel. Store N° 8’s record of innovation and of developing capabilities that will transform retail as we know it makes for the perfect environment to leverage Aspectiva’s technology throughout the shopping funnel,” said Ezra Daya, CEO of Aspectiva, in a statement.

In its efforts to source more innovation particularly for tackling newer frontiers in commerce, Walmart has been stretching its wings internationally. Last year, the company acquired most of Flipkart, which had been known as the “Amazon of India” (before Amazon doubled down on India, one of the world’s fastest-growing markets for e-commerce, to make sure that it would be the Amazon of India).

And Walmart has also been active in Israel. It’s a strategic investor in Team8, an incubator that conceives of, funds and builds startups in the country; it has a $250 million content JV with media company Eko; it is part of The Bridge, a tech accelerator that promotes Israeli startups; and last year its Indian subsidiary Flipkart acquired Upstream Commerce to help with its own recommendation and pricing algorithms.

“Aspectiva has developed incredibly sophisticated machine learning techniques and natural language processing capabilities, both of which are areas we believe will have profound impact on how customers will shop in the future. Israel is a hotbed of tech talent and innovation. We’re thrilled to join the growing community of entrepreneurs in Israel and see it expand within Aspectiva,” said Lori Flees, Principal of Store No 8, in a statement.

26 Feb 2019

Alibaba challenger Pinduoduo is bringing imported goods to rural homes

Pinduoduo, the latest challenger to China’s ecommerce dominators Alibaba and JD.com, wants to bring affordable, imported items to shoppers in China’s smaller cities and rural areas.

The three-year-old Tencent-backed ecommerce upstart is recruiting importers to set up shop on its marketplace, shows a message on its website. The business is known for offering cheap, sometimes counterfeit goods that initially appealed to users from the less prosperous parts of China but have gradually garnered more price-sensitive urbanites. Its rise is closely linked to Tencent’s popular WeChat messenger, which lets it toy with viral marketing schemes like group deals, a level of access that’s unavailable to, say, Tencent rival Alibaba. Furthermore, the app’s focus on direct sales between manufacturers and consumers helps to keep costs down.

Pinduoduo’s social group-buying model works so well that it’s rapidly closing in on its larger rivals. It claimed 232 million monthly active users by the end of September. That represents only a fraction of Alibaba’s 700 million user base but the newcomer is growing at over 200 percent year-over-year. Pinduoduo already eclipsed JD.com in terms of market penetration according to data analytics company Jiguang. Over the past year, Pinduoduo was installed on 27.4 percent of all mobile devices in China, placing it ahead of JD.com which stood at 23.9 percent and behind Alibaba’s Taobao at 52.5 percent.

And now Pinduoduo becomes attuned to China’s booming cross-border business. People’s cravings for imported, higher-quality goods are surging along with their increasing disposable income. That new demand gives rise to a bountiful supply of “daigou”, or purchasing agents who send overseas goods to Chinese shoppers, and inspires ecommerce operators like Alibaba and JD.com to start their own cross-border businesses. The lucrative sector, estimated by market researcher iiMedia to have generated 9 trillion yuan ($1.34 trillion) in transactions last year, has even drawn unexpected players like NetEase. The Hangzhou-based firm is best known as one of China’s top game publisher but it’s made a dent in cross-border shopping in recent years with its Kaola service, which is reportedly buying Amazon China’s import unit.

TechCrunch has reached out to Pinduoduo for more information on its overseas shopping scheme and will update the story if we hear back. What we know for sure is that the ecommerce site plans to take on 500,000 small and medium-sized merchants for its overseas channel within the next three years, the company’s vice president Li Yuan announced at a November event. Pinduoduo was already deliverying imported goods to customers, a business that it said had seen surging transactions last year.

Pinduoduo has yet to make a profit, and the cost of battling Alibaba and JD.com became more evident after it recently announced to raise more than $1 billion just six months after a $1.63 billion initial public offering in the U.S. Time will tell whether cross-border ecommerce — where it plans to replicate its direct sales model — will help it gain an upper hand over the industry giants.

26 Feb 2019

Cedars-Sinai puts Amazon Alexa in patient rooms as part of a pilot program

Los Angeles medical center Cedars-Sinai is currently piloting a program that places Amazon Echos in more than 100 patient rooms. The smart speakers use Aiva, a voice assistant platform for healthcare, and is intended to help patients communicate with their caregivers. Letting patients use Alexa to perform basic tasks like changing TV channels also frees up nurses to perform medical care.

Backed by Amazon’s Alexa Fund and the Google Assistant Investment Program, Aiva also participated in the Cedars-Sina accelerator program for healthcare startups. The platform also works with Google Home.

After a patient tells Alexa what they need, Aiva routes it to the right person’s mobile phone. For example, if someone needs medicine, their request goes to a registered nurse. If a response takes too long, Aiva reroutes the request “up the chain of command.”

Voice assistants are currently being tested in several capacities in healthcare. For example, voice assistants in Boston Children’s intensive care unit let nurses ask for administrative information, like who is the charge nurse on duty or how many beds are available in a ward. Boston Children’s also piloted voice-enabled versions of the checklist used to validate organs before transplant, with prompts to help reduce error. KidsMD, a program powered by Alexa, is meant to be used by parents at home to help them decide if their kids need to see a doctor.

Amazon still holds the top position in the smart speaker market, and likewise Alexa is currently the voice assistant most often used by hospitals, according to Healthcare IT News. So far, its devices have been used in Boston’s Beth Israel Deaconess Medical Center and Commonwealth Care Alliance, Northwell Health in New York, and Libertana Home Health in Los Angeles, in addition to Cedars-Sinai.

26 Feb 2019

Online learning startup Skill-Lync promises India’s mechanical engineers a job, or their money back

You might hear stories that TechCrunch favors venture-backed companies, or will only write about startups that have raised from certain VCs. Well, I can tell you that is totally untrue. In fact, it couldn’t be further from the truth. Speaking for myself, I really enjoy talking to successful bootstrapped companies. Raising money can be a validation, but it certainly isn’t a measure of success in itself… with more money comes increased responsibilities.

That’s an unusual preamble, but it sets the scene for Skill-Lync, an India-based online education company that is currently part of the Y Combinator program in the U.S. The business is bootstrapped and developing a fascinating service that helps India’s thousands of engineering graduates to turn their book smarts into employable skills and jobs.

Skill-Lync started out as a YouTube channel to share engineering tips, but today it is an online training course for mechanical engineering candidates. It operates three different types of courses, ranging from one-off modules to full-time curriculums.

With an estimated 1.5 million mechanic engineering graduates leaving India universities and colleges each year, competition for jobs is tough but equally, with many overseas markets seeking skilled talent, there are international opportunities but many students are unaware of how to pursue them.

Skill-Lync seeks to match mechanical engineers with U.S-based Masters degree courses and/or employers directly. That’s done through an online learning course that uses video content developed alongside industry companies — the goal is to help instill employable skills and experience to students.

Students watch videos independently but come together in groups on WhatsApp to work on assignments. Course teachers operate virtual ‘open hours’ on a Friday to allow interaction with students, questions and more.

The regular courses cost $250 per unit and cover specific areas related to mechanic engineering and its application in the workplace.

Last year, some 2,500 students took part in Skill-Lync courses and while the courses are demanding, with around a 22 percent completion rate, the results are impressive for those who cross the finishing line. So impressive, in fact, that Skill-Lync is launching a new and more comprehensive course that guarantees a job at the end of it or else participants get a full refund.

The new course — which guarantees employment or a refund — lasts for eight months of 40 hours per week, with a part-time option of 20 hours per week over 15 months. It is priced at Rs. 245,000 — around $3,500 — and open to qualified candidates based in India.

“Students learn in-depth technical concepts in developing a full-fledged Hybrid Electric Vehicle,” co-founders Suryanarayanan Paneerselvam and Sarangarajan Iyengar — who studied in India before getting on Masters Degrees and later jobs in the U.S. — told TechCrunch. “The course teaches students concepts such as Battery Performance Management, Electric & IC Engine Powertrain, Strength Analysis (Finite Element analysis), External Aerodynamics & Design.”

The first cohort will open in April, enrollment applications are open until March 15.

Skill-Lync founders Suryanarayanan Paneerselvam and Sarangarajan Iyengar (left and right) started with a YouTube but now have a business that helps mechanical engineers developed employable skills to get hired

Paneerselvam and Iyengar expect that the higher commitment requirement can boost their completion rate to 67%, that would be double what it is currently is for individual courses. The duo is exploring options to help students earn money during the course through crowd-sourced support.

“We believe that education is like a product,” Paneerselvam said in an interview. “In the same way that you buy a product from Amazon but if it doesn’t work you can return it for a refund.”

The company is also preparing to launch a similar program to U.S-based students in June, who currently account around 10 percent of monthly course enrollments.

But rather than guaranteeing money back, that U.S-focused course will totally free upfront other than $700 to pay for software licenses for requisite mechanical engineering services. Instead, Skill-Lync will make its money from graduates earning.

“We will guarantee anyone who finishes our course a full-time job opportunity,” Paneerselvam explained. “Once they join a company, they will pay us 15 percent of their salary for two years. Tuition will be capped at a maximum of $20,000. The student can also choose to pay $10,000 as a one time fee once they get a job after our course.”

Going forward, the ambitious company wants to apply its playbook to other industries beyond mechanical engineering.

“We want to get into biotech and chemical engineering,” Iyengar said. “We’ve basically created a playbook for mechanical engineering, now we need to apply it to other engineering disciplines.”

That’ll mean hiring experts in those disciplines and continuing to work with industry leaders to develop course content. It’s a move that is also likely to boost female participation — 98 percent of current students are male — which is something that the Skill-Lync founders are keen to make progress on.

More, widely, they believe that they could replace college-based training for skilled engineering in the future.

“In the future, we can be a college ourselves as an online platform, where a student can say ‘Hey, I don’t need 4 years of college, I’ll take this course and get a job,'” said Paneerselvam. “We know the path for this but currently we are not focusing on it.”

The more immediate goal is to scale the new courses.

Y Combinator is well known for its impressive network that connects promising startups to VCs. Skill-Lync is aiming to take advantage of that to raise something in the region of $5 million to develop its service into this wider vision.

“For what we are doing right now, we don’t need money,” Paneerselvam explained. “But the goal is in the next two years to take this masters program and scale it to 30,000 students. We seriously believe that possible across different domains.”

On the positive side, Skill-Lync has picked a good time to go after funding with a number of companies bringing digital learning to the fore. Investors have never been more keen on exploring the potential to democratize knowledge via the internet in India.

Byju’s recently raised $550 million to globalize its courses, which are aimed at grades 4-12, and spent $120 million to acquire Osmo, a startup that develops hardware to meld online and offline learning for kids. While U.S.-India company Emeritus was the beneficiary of a $40 million Series C and Topper raised $35 million in December.

26 Feb 2019

Startup Law A to Z: Intellectual Property

Whether protected through copyright, trade secret, trademark, or patents, software technology companies depend on IP more so than perhaps any other business type in history.

It is surprising, then, just how little founders think about protecting their own IP. Sure, “product-market fit” is an all-engrossing search for truth that tolerates no distraction, but that is at best an explanation, not an excuse.

The real pros will find product-market fit while documenting and protecting IP along the way — it’s the only way to ensure you own your work, after all.

This article provides an overview to help you think about where your IP sits, how to protect it, and how to avoid certain pitfalls that plague far too many startups.

This is the second article in the Extra Crunch exclusive “Startup Law A to Z” series, following my article on corporate matters last week. I will avoid full repetition here, but briefly, the purpose of this series, alongside other Extra Crunch resources, is to provide you enough information to analyze your business circumstances and evaluate your legal risk exposure to common legal issues facing startups, such as corporate matters, IP, business transactions, compliance/regulatory, and HR. If you see legal risks in these or related areas, you can consult the Verified Expert list of best startup lawyers and reach out for help — it’s that simple.

The Legal IP checklist:

Assigning IP

  • Founder pre-existing IP
  • Employee Confidential Information & Intellectual Property Assignment agreements
  • Independent Contractor/Consulting Services agreements

Protecting IP ownership

  • Licensed IP and modifications/improvements
  • Current or previous employers (see Cal. Labor Code §§ 2780-2782)

Strategic IP Portfolio

Patents

  • One-year statutory bar
  • Provisional patent application
  • International protection
  • Software patents under Alice v. CLS Bank
  • Offense and defense against patent trolls

Trade Secrets

  • Preserve confidentiality
  • Limit and control access

Trademarks

  • Check USPTO trademark database
  • Secure federal trademark registration for enforcement
  • Not merely descriptive

Copyright

  • Original work of authorship
  • Secure federal copyright registration for enforcement
  • Understand ‘Fair Use’

Read on for our detailed breakdown of each of these items.

IP, legally speaking

From a high level, IP rights provide their owners the ability to legally prevent others from using certain technology or other protected assets. IP is essentially a property right that can be sold and assigned to others in the same way that vehicles, houses or any other form of tangible property can be bought and sold. Startups should think about IP along the lines of a portfolio specifically created to protect their particular business goals and strategy, in light of competitive market forces.

26 Feb 2019

Blossom Capital raises $85M fund to do ‘high conviction’ Series A investing in Europe

Blossom Capital, the venture capital firm co-founded by ex-Index Ventures and LocalGlobe VC Ophelia Brown, is announcing that it has raised an $85 million fund to invest in European tech startups at Series A stage.

LPs in the new fund, which TechCrunch reported early details of twelve months ago, are said to span leading institutional investors, as well as high-profile tech entrepreneurs. The latter includes Robinhood co-founder Vladimir Tenev, and Zendesk founder Mikkel Svane.

Meanwhile, alongside Brown, Blossom’s other partners are Imran Ghory, who previously led data-driven deal sourcing at Index and was head of data insights at MarketInvoice; Mike Hudack, who until very recently was CTO at Deliveroo and prior to that a director of product at Facebook; and Louise Samet, a fairly active angel investor and who previously worked at Klarna as a digital product manager.

Also noteworthy, eagle-eyed readers will have noticed that the new VC firm appears to have a lost a founding partner already: former Uber China executive Candice Lo was previously listed on the Blossom Capital website as a Blossom co-founder and partner but TechCrunch understands has since departed.

“It’s been an honour being part of the team at Blossom, but I am leaving to spend more time with family,” said Lo in a statement issued to TechCrunch. “The fund has reached an incredible milestone and I will be cheering the team on as they continue to grow Blossom in Europe.”

In a call with Brown late last week, she said that Blossom aims to distinguish itself from other Series A investors in Europe by embracing a more “West Coast” approach with what she calls “high conviction” investing. The firm will write larger cheques than many Series A investors — in the region of $5m to $10m — and plans to do only 4-5 deals per year, which, again, is quite unusual.

The idea is to place fewer but bigger (and potentially riskier) bets and give the limited number of companies Blossom backs enough runway to get to a meaningful Series B. Arguably, it also means the Blossom team, which remains small, won’t be spreading the support offered to its portfolio too thin.

On that note, Blossom has already backed four companies. They are Duffel, Fat Llama, Frontify, and Sqreen. Co-investors have included Y Combinator, Greylock and Index Ventures -– some decent names for a new firm, to say the least.

Another aspect that Brown talked up is Blossom’s use of data to source and support deals. Both partners Ghory and Hudack have technical backgrounds — which should make them especially technical founder friendly — and I’m told the firm has developed technology that pulls in various data to look for signals of promising companies across Europe’s disparate and fragmented ecosystem.

The thinking, says Brown, is to ensure a small firm like Blossom can still source deals in some of Europe’s more hidden tech hubs, rather than just the major ecosystems. She declined to go into much detail on exactly what data is being used, obviously careful not to give away any of Blossom’s secret source.

More broadly, VCs are increasingly pinning more of their success on the use of data, whether that be throwing data scientists and analysts at the problem or building bespoke software. Two other European firms thought to be taking a similar approach to Blossom are London-based InReach Ventures and Berlin’s Fly VC.

“If you look at the big outcomes in Europe, around 70 percent of them today came from outside of the major hubs, in countries such as Romania, Finland and Portugal,” writes Brown in a blog post. “Data allows us to cover the entire continent, not just the major and overfished capitals like London, Paris, Berlin and Stockholm”.

25 Feb 2019

Report: the SEC has asked a judge to hold Elon Musk in contempt for violating his settlement with the agency

The U.S. Securities and Exchange Commission asked a judge to hold Elon Musk in contempt for violating his Oct. 16 settlement with the agency, Bloomberg News reports.

We’ve reached out to both Tesla and the SEC and are awaiting more information.

Last Tuesday night, Musk tweeted out that Tesla would make around 500,000 cars this year, correcting himself hours alter to clarify that he meant the company would be producing at an annualized rate of 500,000 vehicles by year end.

The next morning, Tesla announced that its general counsel, Dane Butswinkas, is leaving.

Butswinkas had battled on Musk’s behalf with the SEC last year, after Musk tweeted in August that he had “funding secured” to take the company private. In the end,  Musk and Tesla settled without admitting wrongdoing. Still, Tesla had to pay a $20 million fine; Musk had to agree to step down as Tesla chairman for a period of at least three years; the company had to appoint two independent directors to the board; and Tesla was also told to put in place a way to monitor Musk’s statements to the public about the company, including via Twitter.

It’s this last part that appears, right now, to be the sticking point.

This story is developing; more soon.

25 Feb 2019

Climate change kills off clouds over the ocean in new simulation

We all know climate change is affecting weather systems and ecosystems around the world, but exactly how and in what way is still a topic of intense study. New simulations made possible by higher-powered computers suggest that cloud cover over oceans may die off altogether once a certain level of CO2 has been reached, accelerating warming and contributing to a vicious cycle.

A paper published in Nature details the new, far more detailed simulation of cloud formation and the effects of solar radiation thereupon. The researchers, from the California Institute of Technology, explain that previous simulation techniques were not nearly granular enough to resolve effects happening at the scale of meters rather than kilometers.

These global climate models seem particularly bad at predicting the stratocumulus clouds that hover over the ocean — and that’s a big problem, they noted:

As stratocumulus clouds cover 20% of the tropical oceans and critically affect the Earth’s energy balance (they reflect 30–60% of the shortwave radiation incident on them back to space1), problems simulating their climate change response percolate into the global climate response.

A more accurate and precise simulation of clouds was necessary to tell how increasing temperatures and greenhouse gas concentrations might affect them. That’s one thing technology can help with.

Thanks to “advances in high-performance computing and large-eddy simulation (LES) of clouds,” the researchers were able to “faithfully simulate statistically steady states of stratocumulus-topped boundary layers in restricted regions.” A “restricted region” in this case means the 5×5-km area simulated in detail.

The improved simulations showed something nasty: when CO2 concentrations reached about 1,200 parts per million, this caused a sudden collapse of cloud formation as cooling at the tops of the clouds is disrupted by excessive incoming radiation. Result (as you see at top): clouds don’t form as easily, letting more sun in, making the heating problem even worse. The process could contribute as much as 8 or 10 degrees to warming in the subtropics.

Naturally there are caveats: simulations are only simulations, though this one predicted today’s conditions well and seems to accurately reflect the many processes going on inside these cloud systems (and remember — inherent error could be against us rather than for us). And we’re still a ways off from 1,200 PPM; current NOAA measurements put it at 411 — but steadily increasing.

So it would be decades before this took place, though once it did it would be catastrophic and probably irreversible.

On the other hand, major climatic events like volcanoes can temporarily but violently change these measures, as has happened before; the Earth has seen such sudden jumps in temperature and CO2 levels before, and the feedback loop of cloud loss and resulting warming could help explain that. (Quanta has a great write-up with more context and background if you’re interested.)

The researchers call for more investigation into the possibility of stratocumulus instability, filling in the gaps they had to estimate in their model. The more brains (and GPU clusters) on the case, the better idea we’ll have of how climate change will play out in specific weather systems like this one.