24 January 2023

Daily Newsletter

Microsoft Confirms ‘Multibillion-Dollar’ Investment in OpenAI

Facts

  • On Monday, Microsoft announced a multiyear, multibillion-dollar investment in ChatGPT-maker OpenAI.
  • While Microsoft did not disclose the terms, media reports claim the software giant has infused as much as $10B into OpenAI. The intention is to "responsibly advance cutting-edge AI research and democratize AI as a new technology platform" per Satya Nadella, Microsoft chair and CEO.
  • Microsoft, which invested $1B into OpenAI in 2019, is expected to get 75% of OpenAI's profits until it recoups its investment.
  • In a blog post, Microsoft said the investment would include additional supercomputer development and cloud-computing support for OpenAI via Microsoft's Azure cloud-computing platform.
  • At the same time, the investment could allow Microsoft to incorporate OpenAI tools like ChatGPT and image generator Dall-E into its flagship applications, such as Word, PowerPoint, and Outlook.
  • The announcement comes just one week after Microsoft announced it would be laying off 10K employees throughout 2023 as part of broader cost-cutting measures.

Spin

Establishment-critical narrative

Tech giants seeking to cash in on the AI gold rush is a worrying trend. Microsoft's multibillion-dollar investment signals that users are at a disadvantage if they're not using AI. While ChatGPT certainly acts as a powerful demonstration of what AI can do today, if artificial intelligence begins doing the creative jobs of human beings, it could render millions of jobs useless.

Pro-establishment narrative

AI tools will boost human productivity, increasing economic growth and the wages for minimum-wage jobs. Many software developers and companies leverage AI-based technologies to boost employee productivity, unlock efficiencies, and increase job satisfaction. Instead of betting against AI technology in fear that it will steal their jobs, businesses and employees must embrace the technology to ensure they remain effective and competitive in their respective fields.

READ FULL STORY

Burkina Faso: Junta Ends Military Pact With France

Facts

  • Burkina Faso's government has decided to end a military pact that allowed French troops to fight armed groups in the West African country, its spokesperson Rimtalba Jean Emmanuel Ouedraogo stated on Monday.
  • He stated that the military junta and the nation want to be the main actors to take back territory occupied by Islamist militants, and that termination of military cooperation — which was part of the original terms of the collaboration with the French — does not damage diplomatic relations.
  • This comes after France's Pres. Emmanuel Macron on Sunday demanded clarifications from the Burkinabe transitional Pres. Ibrahim Traoré in the wake of initial reports over a potential request for a French withdrawal.
  • State news outlet Agence d'Information du Burkina (AIB) reported on Saturday that the junta had denounced the agreement on Jan. 18, giving France exactly one month to remove its troops from the country according to the terms of the 2018 agreement.
  • This is the latest sign of a deteriorating relationship between Burkina Faso and France since Traoré took over the country in September. Traoré overthrew Paul-Henri Sandaogo Damiba of the nation's military, who ousted democratically-elected leader Roch Kaboré eight months prior to that.
  • France currently has 400 special forces stationed in Burkina Faso contributing to counter-insurgency efforts in the region and has recently withdrawn from neighboring Mali as the Russian private military Wagner Group increases its foothold in West Africa.

Spin

Establishment-critical narrative

The deteriorating security crisis in West Africa is primarily the result of the West's decade-long political and military interference under the guise of fighting terrorism. There is hope for the region only when it's no longer possible for the West to pursue its geopolitical interests unchallenged by pretending to "help" in the Sahel.

Pro-establishment narrative

Though Western powers can be criticized for their colonial record in West Africa, local authorities must stop blaming the West for today's crises. National leaders must focus on tackling the jihadist insurgency rather than simply use it to justify their undemocratic rule. As Russian actors step up in the region to partner with military juntas, their counterterrorism efforts have proven just as unsuccessful.

READ FULL STORY

Turkey's Erdoğan Threatens to Block Sweden's NATO Bid After Quran Burning

Facts

  • Speaking in televised remarks after a cabinet meeting on Monday, Turkey's Pres. Recep Tayyip Erdoğan warned Sweden that it cannot expect his backing to join NATO after a Quran was burnt in Stockholm over the weekend.
  • This comes after protests gathering pro-Kurdish groups and anti-Islam activist Rasmus Paludan took place outside the Turkish Embassy in the Swedish capital, with the latter setting fire to a copy of the Islamic holy book and the former waving flags of Kurdish groups that Ankara considers terrorist organizations.
  • Turkey immediately denounced the act, as well as Swedish authorities for allowing the demonstration. The nation has also canceled a visit from Sweden's defense minister that would have facilitated discussion of its NATO membership, as Turks rallied in front of the Swedish Embassy in Ankara.
  • Saturday's protests in Stockholm had been given prior approval, however, the burning of the book was not anticipated. Sweden's Foreign Minister Tobias Billström argued that the country's comprehensive free speech laws do not imply that the government supported the opinions expressed at the demonstrations.
  • Sweden, along with Finland, applied last year to join NATO, but Ankara has demanded Stockholm in particular take a clearer stance against groups it sees as terrorists before it endorses the application — all 30 member states of the alliance must give approval for NATO membership to be granted.
  • Turkey is, together with Hungary, the only NATO ally not to have ratified Sweden's decision to break their tradition of military non-alignment in response to the Ukraine war. Hungary's parliament is expected to approve the two bids next month.

Spin

Establishment-critical narrative

It would be unacceptable for Ankara to give Sweden the thumbs up to its NATO membership while Stockholm allows terrorist sympathizers to spout anti-Islam hate speech and blatantly carry out provocations against Turkey and Muslims. Turkey has already made its terms for supporting Swedish entry into the alliance clear, so the nation must decide whether joining the bloc in opposition to Russian aggression is more important than supporting terrorists and Islamophobes.

Pro-establishment narrative

While the burning of a copy of the Quran is obviously a grossly disrespectful act against Islam, it is not illegal under Swedish law which values freedom of expression as a fundamental part of democracy. If Turkey bases its decision over Sweden's NATO bid on this disgusting but unrepresentative incident, it will be doing exactly what the minority responsible wanted and giving in to Islamophobic hate.

Nerd narrative

There's a 75% chance that Sweden will join NATO before 2024, according to the Metaculus prediction community.

READ FULL STORY

South Africa Hosts Russian Foreign Minister

Facts

  • On his second Africa trip within six months, Russian Foreign Minister Sergey Lavrov on Monday visited South Africa for bilateral talks with his counterpart, Naledi Pandor.
  • While Lavrov welcomed South Africa's neutral stance since the start of the Russia-Ukraine war, Pandor reiterated that Pretoria favors a diplomatic solution to the conflict. Pandor asserted that South Africa will not let the West determine which countries it maintains bilateral relations with.
  • Pandor stated that given recent developments, including "the massive transfer of arms" to Ukraine, it would be "simplistic and infantile" to renew Pretoria's original demand that Moscow unilaterally withdraws its forces from Ukraine.
  • At a press conference, Dr. Pandor also defended the South Africa-hosted 10-day naval drills with Russia and China in February, calling them an expression of collaboration between "friends worldwide."
  • Both diplomats agreed on the growing importance of the BRICS group of nations, which South Africa currently chairs, with Pandor stating that the bloc of emerging economies should play a greater role in reshaping the global order in light of global geopolitical dynamics.
  • Since the African National Congress (ANC) was still a liberation movement against white minority rule in the country, South Africa's ruling party has maintained close ties with Moscow and has abstained from voting against Russia on UN resolutions relating to the Ukraine war.

Spin

Establishment-critical narrative

The fact that South Africa maintains and expands its relations with international pariahs such as Russia for nostalgic and ideological reasons could cost the country dearly since it cannot be assumed that the West will continue to stand idly by. The stakes are high — much of South Africa's investment and trade are with the West and its military equipment is sourced from there. If South Africa does not change its course and continues to try to play both sides, it risks ending up as a pariah itself.

Pro-establishment narrative

In criticizing South Africa for its ties with Moscow, the West is once again applying double standards. This is also true of the naval drills with Russia and China, which in no way mean that Pretoria is abandoning its neutral stance amid the Ukraine war. Moreover, it is hypocritical to criticize the drills but remain silent when Washington demonstrates military power at will. As a sovereign country, South Africa is no longer willing to bow to Western definitions of right and wrong.

READ FULL STORY

Day 335: String of Sackings and Resignations Amid Ukraine Corruption Allegations

Facts

  • With Tuesday marking 11 months since the start of the Russia-Ukraine conflict, the Ukrainian government has been shaken by a series of corruption allegations that have led to the firings and resignations of a number of officials.
  • As reported earlier in the week, the first to go was Ukraine's deputy minister for community development Vasyl Lozynskyi, who was detained and dismissed from his post over the weekend for allegedly stealing $400K in funds intended for purchasing aid, including generators.
  • On Monday, Ukraine's deputy prosecutor general, Oleksiy Symonenko, resigned after the newspaper Ukrainska Pravda revealed he had taken a vacation to Spain in a luxury car owned by Grigory Kozlovsky — a businessman accused of tax evasion and mass production of cigarettes for the black market. Under Ukraine's martial law, men aged 18–60 were not permitted to leave the country.
  • He was followed by deputy defense minister Vyacheslav Shapovalov, who resigned Tuesday after the Ukrainian newspaper ZN UA reported that the country's defense ministry had purchased food for its armed forces at prices two-to-three times higher than their equivalents in Kyiv supermarkets. The defense ministry labeled the allegations "unsubstantiated," but thanked Shapovalov, who'd been in charge of procurement, for taking the fall.
  • The deputy head of Ukraine’s presidential office, Kyrylo Tymoshenko, also resigned Tuesday. He was under investigation relating to his personal use of luxury cars, as well as his alleged involvement in an embezzlement scheme worth $7M from humanitarian aid that had been earmarked for the region of Zaporizhzhia.
  • Later in the day, it was confirmed that the head of social policy, Vitali Muzichenka, and two deputy ministers for community — Ivan Lukerya and Vyachelsav Negoda — were also dismissed from their roles. So too were the governors of five regions — Oleksiy Kuleba in Kyiv, Dimitro Zhivitski in Sumy, Yaroslav Yanushevich in Kherson, Valentina Reznichenko in Dnipropetrovsk and Oleksandra Staruja in Zaporizhzhia.
  • Meanwhile, on the ground, with the brunt of the fighting continuing in Donetsk, Ukrainian officials reported that three civilians were killed and three others were injured in the region over the past day. Pro-Russia officials reported that five civilians were injured in Ukrainian attacks on Donetsk over the same time period.

Spin

Narrative A

Ukraine has a history of corruption, evident in the fact that it came 122 out of 180 countries in Transparency International's 2021 rankings of corrupt states. However, the European Union has emphasized that cleaning up corruption is a key stipulation if Ukraine wants to join the bloc. Zelenskyy is taking effective action to meet that demand, with a view to fostering closer ties with the rest of Europe and protecting Ukraine's political and military security.

Narrative B

Kyiv has been keen to show the European Union that it's been rooting out corruption in the country. However, today's developments will strike severe blows to Ukraine's reputation among EU officials. The perception of Kyiv's commitment to the application process, along with those of Ukraine's overall EU aspirations in general, have been damaged by these reports.

Nerd narrative

There is a 1% chance that Ukraine will join the European Union before 2024, according to the Metaculus prediction community.

READ FULL STORY

US Charges Ex-FBI Agent With Violating Russian Sanctions

Facts

  • On Monday, former FBI agent Charles McGonigal pleaded not guilty to charges related to allegedly working with a sanctioned Russian businessman and hiding money he received from a former Albanian intelligence employee while he was at the Bureau.
  • Prosecutors allege McGonigal unsuccessfully worked with a law firm to lift sanctions on Russian aluminum magnate Oleg Deripaska. They further add that he and Sergey Shestakov, a former Russian diplomat, then negotiated with Deripaska's agent to proceed without the firm.
  • McGonigal and Shestakov, who became a US citizen and worked as an interpreter for US courts, allegedly worked for Deripaska to investigate an unnamed rival Russian businessman in 2021, in violation of US sanctions.
  • McGonigal is also charged with receiving $225k from a former Albanian intelligence officer in return for urging the Albanian PM not to issue "oil field drilling licenses in Albania to Russian front companies," contracts the intelligence officer reportedly had financial interests in.
  • Both men are charged with violating US sanctions law, conspiring to violate and evade sanctions law, conspiring to commit money laundering, and money laundering. Each count carries a maximum of 20 years in prison, with Shestakov also facing five years for lying to the FBI.

Spin

Republican narrative

The irony here is incredible. McGonigal — one of the men in charge of designing the "Russia Collusion" theory against former Pres. Trump — has now been accused of having done the exact thing he falsely claimed Trump did. This illustrates how far the rot has spread among the FBI.

Democratic narrative

One rogue agent shouldn’t tarnish all the hard work the rest of the Bureau does on a daily basis. The American people can rest assured the FBI is committed to sticking to its processes and dispersing justice equally. The charges against McGonigal are proof that no one is above the law.

Narrative C

While these are serious allegations, the trial is in its infancy, and the media needs to be careful not to jump to conclusions. The justice system should be left to render a verdict without interference, and until then, McGonigal should be presumed innocent until proven guilty.

READ FULL STORY

France Repatriates 47 Nationals From Syrian Camps

Facts

  • France has repatriated 47 women and children from prison camps in northeast Syria where families with suspected ties to the Islamic State group (IS) are held.
  • Fifteen women and 32 children were repatriated. The French Foreign Minister says that the repatriated adults were handed over to the "competent judicial authorities" and that the children were delivered to child assistance services and will undergo appropriate medical and social monitoring.
  • This is France's third large-scale repatriation, with the previous ones taking place in October when France repatriated 15 women and 40 children, and in July, when 16 women and 35 children were returned.
  • When IS was territorially defeated, many of the family members of IS fighters ended up in refugee camps. The transfer of these foreign detainees and their family members has become a highly-controversial issue, with the US-backed Syrian Democratic Forces (SDF) issuing a statement that it may soon be forced to abandon the camps.
  • The women and children repatriated on Tuesday were living in the Roj camp in northeast Syria, which is under Kurdish control.
  • The total number of foreign nationals repatriated since 2019 is about 1,530 women and children.

Spin

Establishment-critical narrative

France is not doing enough to repatriate its citizens languishing in refugee camps in Syria. France is violating the UN Convention Against Torture by refusing to help these women and children suffering from violence and poverty. By being deliberately slow in repatriating its citizens, Paris is condemning thousands of children to a life of trauma and violence, which will only deepen their extremist beliefs.

Pro-establishment narrative

The repatriated families of IS fighters pose both a physical and ideological threat to the nations they are returned to. While children can be rehabilitated, the women who intentionally brought or raised families in the Islamic State should be held accountable for their actions by their nations of origin and charged with terrorism or other related offenses. While repatriation should happen, this shouldn't be done hastily.

READ FULL STORY

DOJ Sues Google Over Ad Dominance

Facts

  • The US Dept. of Justice (DOJ) on Tuesday filed a lawsuit against Alphabet subsidiary Google, alleging the company abuses its dominance in the digital advertising sphere and asking the court to force it to sell its ad manager suite.
  • In its second anti-trust lawsuit against Google - the first filed during the Trump admin. regarding alleged monopolistic search engine practices - the DOJ has been joined by eight states, including Google's home state of California. Texas has filed a separate ad business suit against the company.
  • The complaint argues Google has "corrupted legitimate competition in the ad tech industry" by inserting "itself into all aspects of the digital [ad] marketplace." It continues, saying it uses its dominance to "funnel more transactions to its own ad tech products where it extracts inflated fees."
  • The DOJ further asserts that Google has unlawfully monopolized the ad market through acquiring competitors, including its 2008 acquisition of the ad server DoubleClick and subsequent rollout of its technology to bid for ads on webpages.
  • Roughly 80% of Google's revenue comes from digital ads, with the company expecting to generate $73.8B this year. However, its portion of the digital ad market has reportedly shrunk from 36.7% in 2016 to 28.8% last year, with Google arguing it does face competitors such as Facebook, AT&T, and Comcast.
  • Alongside this lawsuit, Google will simultaneously face the suit filed by Texas, the Trump-era suit set to go trial in September, and another suit filed by 36 states last July alleging it broke antitrust law regarding purchases on its Play store app.

Spin

Establishment-critical narrative

Though Google will point to recent economic slumps and downsizing as proof of innocence, the company's monopolistic practices began over a decade ago. Google eliminates competition through acquisitions and subsequently forces advertisers to pay more creators to make less, all while boosting its profits year over year. The government has ignored this growing monopoly for years and should finally break its stranglehold on the digital ad market.

Pro-establishment narrative

While prosecutors may be able to point to certain questionable business practices used by Google, trying to break the company up through anti-trust legislation is a dead end. It will be almost impossible to prove a monopoly, similar to what happened to Microsoft years ago when the DOJ sued them for anti-trust violations. The government should demand changes to particular business practices rather than trying to take down the world's most popular search engine.

READ FULL STORY

COVID Unemployment Fraud May Exceed $60B

Facts

  • A new report from the US Government Accountability Office (GAO) estimates that pandemic unemployment benefits fraud exceeded $60B, with $8.5B of that amount coming from defrauding the regular unemployment insurance program.
  • The GAO extrapolated a lower-bound estimate to assume that 7.6% of all unemployment claims are fraudulent, making the $60B estimate a conservative one.
  • An earlier report from the GAO said that the improper payment rate may have been 18.9% during the pandemic, meaning the actual amount of fraud could be substantially higher.
  • Congress established four additional new unemployment insurance programs during the peak of the pandemic to complement the state-administered programs. The federal government paid out more than $878B from April 2020 to September 2022 to supplement the states’ benefits.
  • This report emerges as the House Oversight Committee, which was recently taken over by Republicans after they won a majority in the November midterms, is planning to hold hearings on the fraud issue beginning Feb. 1.

Spin

Democratic narrative

COVID caused a historic upheaval of the US economy, and something needed to be done to support Americans who lost work. The states and Congress did what they could to prevent fraud, but obviously it was a momentous task. The government has learned how to deal with a situation that will hopefully not come up again.

Republican narrative

Paying people to stay home was always bad policy, but the Democrats couldn’t see past the opportunity they had to buy Americans' votes. Now the US will be bearing the costs of all the fraud for decades to come.

READ FULL STORY

Pence Turns in Classified Documents Found in His Home

Facts

  • Documents marked as classified were discovered at former US Vice President Pence’s home in Indiana last week, which he has turned over to the FBI. Possession of classified documents has been a major story as both Donald Trump and Joe Biden are steeped in a controversy surrounding their handling of documents.
  • Pence’s attorney informed the National Archives that the former vice president had a small number of potentially classified documents on Jan. 18. The Archives then informed the FBI who collected the documents on Jan. 19.
  • Amid ongoing investigations into Trump and Biden’s handling of classified documents, Pence asked his lawyer to conduct a search of his home for documents with classified markings. Pence had previously and repeatedly claimed he did not possess any classified documents.
  • Pence’s lawyer, Greg Jacob, wrote a letter on Jan. 22 confirming that the documents have been collected. A total of four boxes containing Trump administration-era papers were discovered with a “small number” of papers bearing classified markings.
  • Jacob added that materials may have been “inadvertently boxed and transported” to Pence’s home and the former vice president was “unaware” of their existence.
  • Some analysts believe that Pence’s discovery may ease the magnitude of the political fallout from Trump and Biden’s handling of classified documents. Both are likely to run for office in 2024 and have been negatively impacted by the investigations into the issue.

Spin

Republican narrative

Unlike President Biden who is under investigation for mishandling classified documents from his tenure as vice president, Mike Pence has been transparent in how he has dealt with returning classified material. Joe Biden is intent on hiding information from the American people while Pence looks to quickly remedy any potential error in his handling of materials from his vice presidency.

Democratic narrative

Despite emphatically declaring that he did not possess any classified materials, Mike Pence is now backtracking and handing in materials that he claimed not to possess. Pence sees the severe consequences of mishandling classified documents, but now there must be an investigation into the reason he possessed them in the first place. This appears to be a large issue dating to the Trump administration.

READ FULL STORY

Sign up to our newsletter!