Business

(NEW YORK) — An oft-touted advantage of owning an electric vehicle is one-pedal driving, when drivers can slow down a vehicle simply by lifting off the throttle.

But as more Americans swap their gas-powered cars and trucks for an EV, some are also realizing there are drawbacks to the one-pedal lifestyle.

“It can cause some people to get sick,” John Voelcker, a former editor of Green Car Reports and a contributing editor at Car and Driver, told ABC News. “Strong regenerative braking, which recaptures max energy, can cause motion sickness. There is a learning curve to lifting off the accelerator in an EV … you have to modulate it.”

Voelcker said he has felt queasy at least twice while riding in the back seat of a Tesla.

“The drivers didn’t know how to modulate Tesla’s strong regen braking,” he recalled. “I was thrown around a little bit.”

Ed Kim, president and chief analyst of AutoPacific, said Teslas are the “worst offenders” because they can be “very jerky and really abrupt.”

“Most automakers have tuned the throttles to be jumpy in EVs to emphasize the power, but the side effect is that they can lurch and make some occupants car sick. You have to be so careful on how to apply the throttle … if not, it can lead to an abrupt seesaw motion for passengers,” Kim told ABC News.

Kim said his wife has gotten nauseous in a Tesla Model Y and he’s heard of similar experiences from other motorists. The extremely quick acceleration of EVs can be disorienting to Americans who learned how to drive with an gasoline engine.

“EVs have so much torque — you tap the throttle and the thing just takes off. The abruptness of power delivery can be unsettling to some people. If you set really high regenerative braking, the car lurches forward and rocks and back forth a lot,” he said.

Dr. D.J. Verret, an ear, nose and throat doctor in Texas, said motion sickness in EVs “is a real thing.”

Verret pointed out that the lack of sound in an EV can also worsen the experience for passengers, especially those already prone to motion sickness.

“The brain sets up a model for what it expects in certain situations,” he told ABC News. “In combustion cars, you hear the engine revving and know someone is stepping on the accelerator. The car moves forward. In an EV, the auditory and visual inputs don’t fit the model that you are actually moving.”

Passengers are more susceptible to dizziness and nausea in an EV than drivers, especially when they’re in the back seat.

“If you’re the driver, your head moves when you turn the wheel to the left,” he said. “Our brain is responding to what it’s expecting to happen. If you’re a passenger, you can’t see those motions. If you have a certain lateral acceleration — like turning a corner fast — that will increase your potential for dizziness and motion sickness.”

Monica Jones, an associate research scientist at the University of Michigan Transportation Research Institute, has been studying motion sickness for years. It’s a topic that’s gathering “a lot of interest,” she told ABC News, adding that researchers are still not clear on why some people are more sensitive to motion sickness.

She recently completed a study with an automaker that looked at longitudinal jerk, “which is what happens with regen braking,” she said.

Jones and her team modulated the jerk in an automated vehicle while maintaining its peak acceleration. Participants were “very sensitive to the jerk,” she said.

“Motion sickness ratings increased on average throughout the duration of the trial and significant interactions were observed between levels of longitudinal jerk and time,” she said. “The highest rate of accumulation or earliest onset of motion sickness was observed for the jerk condition with the highest magnitude.”

Jones said this research could help automakers ameliorate motion sickness in EVs as they continue to refine the technology with newer models.

“One-pedal driving is a very different experience than combustion engines,” she said. “Even if you learn how to effectively do one-pedal driving, uncertainty in the environment — like traffic — can still cause motion sickness.”

There are EVs available now that ride similarly to an internal combustion engine vehicle, a bonus for those looking to avoid a Tesla-like ride. Hyundai’s new Ioniq 5 N, a chic hatch that makes 641 horsepower, comes with fake gearing and artificial engine noises, delivering a gas-powered experience on and off the track.

Matt Farah, host of the popular “The Smoking Tire” podcast, said he was so blown away by the Ioniq 5 N that his perspective on EVs has changed.

“We now know it’s possible to make an EV fun,” he told ABC News. “The synthetic gearbox and synthetic noises successfully mimic what we like about gasoline sports cars.”

Farah said he, too, has been queasy in an EV before, especially when going really fast or doing full throttle launches.

“If I do two or three launches in a row in an EV, I don’t feel great after,” he said. “The way an EV motor delivers power — and the absence of sound — are what make you feel dizzy going fast in one.”

Hyundai’s decision to include the fake gearing and noises (N e-shift and N active sound+) “were not created to alleviate queasiness or motion sickness, although it is possible that these features might indirectly help reduce some of those effects for electric vehicle drivers,” a company spokesperson told ABC News.

Either way, Farah, who test drove the Ioniq 5 N in California last month, said more automakers should follow Hyundai’s example.

“You have more control over what the car is doing with the gears. You want to control what the car is doing — that is the point of driving,” he said. “You realize the sound is fake, but after a few minutes of driving, it’s giving what you need and it works.”

The Cadillac Lyriq, a sleek electric sport utility vehicle that went into production last year, may not have fake engine noises but its tuning and drive quality has won over motorists who are anti one-pedal driving.

“It’s the closest approximation to an ICE car that I have seen in a while,” Voelcker said.

The Lyriq does not lurch forward unexpectedly like some of the other electric SUVs, Kim pointed out.

“The acceleration is more gentle,” he said. “The passenger experience is more like a traditional gas car — no matter who drives it.”

Kevin Cansiani, a senior engineer at Cadillac, told ABC News the Lyriq drives even better than an ICE car.

“My gripe with ICE transmissions are those shifts and jerks you always get,” he said. “With the Lyriq, there’s just this feeling of seamless torque. The goal of the engineers was to make the Lyriq have a premium drive quality.”

Cansiani ‘s team tuned the Lyriq so that passengers and drivers alike would not be affected by the SUV’s throttle response.

“We came up with a common set of throttle mapping and had specific drive scorecards. We took objective measurements on jerk — that sting you feel,” he said.

The Lyriq offers three regen modes — off, normal or high. Cansiani said the majority of Lyriq customers choose the normal mode for the “instant feel of negative torque.”

And driving with the regen off won’t impact range, Cansiani noted.

“You’re not losing a lot of range,” he said. “We have blended braking on the Lyriq. The brake pedal, when pressed, will command as much regen as possible. When maxed out, only then will it transition to friction braking.”

For electric car rookies, there are ways to minimize the shock when driving some EVs on the market.

“People who are newer to EVs are not accustomed to how powerful and torquey these things can be,” Kim noted, adding that it’s relatively easy to get comfortable with the tech.

He recommended that drivers set up eco mode in their EVs to make the throttle less sensitive. 

“It will give you a more relaxed driving style,” he said.

His other suggestion was that engineers adjust the throttle mapping in an electric vehicle so it more closely mimics how a gasoline-powered car moves and operates.

Voelcker said regen braking is different on every EV and some vehicles may be better than others for those with a lead foot. He personally is a fan of the driving technique: “I don’t touch the brakes. The car does the braking for you.”

Worst case scenario for those who are having trouble with the EV’s stop-start manner? Shut off the regen entirely, Voelcker said.

“It’s about muscle control in the foot,” he explained. “People who drive gas cars, they don’t glide. They accelerate to the stop sign then slam on the brakes.”

He added, “A lot of motion sickness, honestly, is because of the driver.”

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — OpenAI announced a desktop version of its conversation bot ChatGPT on Monday as well as the latest iteration of the AI language model that fuels the chatbot.

The fresh model offers improved speed and interactive capability when compared with the company’s previous model GPT-4, OpenAI Chief Technology Mira Murati said at an event livestreamed by the company.

Known as GPT-4o, the latest version eliminates lag time in the response from ChatGPT and allows users to interrupt the conversation bot with a new query that in turn elicits a modified response, Murati said. The improved capacity, Murati added, functions in response to text, audio and visual prompts.

“We’re looking at the future of our interaction between ourselves and the machines, and we think that GPT-4o is really shifting that paradigm,” Murati said. “This is the first time we’re making a huge step forward when it comes to the ease of use.”

An OpenAI researcher performed a live demonstration in which the new product identified the pace of his breathing and offered him advice on how to relax, and another in which the product provided immediate translation allowing for a conversation between someone speaking Italian and another speaking English.

In a separate demo, the product viewed a researcher’s attempt at solving a math equation through his phone camera and provided real-time guidance.

GPT-4o will be released over the coming weeks, Murati said, adding that the company will make the product available gradually in an effort to prevent abuse.

“Our team has been hard at work building in mitigation against misuse,” Murati said. “We continue to work with stakeholders.”

OpenAI has sought to release fresh products and upgrades since the November 2022 release of ChatGPT, which reached 100 million app users within two months. That performance set a record for the fastest-growing app user base.

In March 2023, Open-AI released GPT-4, the latest version of its AI language model. Days after the release of GPT-4, OpenAI CEO Sam Altman told ABC News that the product scored in the 90th percentile on the Uniform Bar Exam. It also scored a near-perfect score on the SAT Math test, and it can proficiently write computer code in most programming languages.

GPT-4 could be “the greatest technology humanity has yet developed” to drastically improve our lives,” Altman told ABC News at the time.

The announcement on Monday arrives three months after OpenAI unveiled its video-generation tool Sora.

Sora composes videos, lasting up to one-minute long, based on user prompts, just as ChatGPT responds to input with written responses and Dall-E offers up images. The video-generator is in use by a group of product testers but is not available to the public, OpenAI said in a statement in February.

The risks posed by AI-generated content have stoked wide concern in recent months.

Fake, sexually explicit AI-generated images of pop star Taylor Swift went viral on social media in late January, garnering millions of views. A fake image of pop singer Katy Perry at the Met Gala circulated widely online last week, even fooling Perry’s mother

OpenAI posted a statement online in February outlining measures taken by the company to prevent abuse of Sora.

“We’ll be taking several important safety steps ahead of making Sora available in OpenAI’s products,” the company website says. “We are working with red teamers  —  domain experts in areas like misinformation, hateful content, and bias  — who will be adversarially testing the model.”

In response to growing scrutiny over AI-produced content, tech platforms have taken steps to regulate such posts ahead of the November election.

Meta announced in February that it would begin labeling images created by OpenAI, Midjourney and other artificial intelligence products. Social media site TikTok said in an online statement last week that it would also start labeling such images.

The series of major product releases in recent years has coincided with leadership turmoil at OpenAI.

Altman abruptly stepped down in November 2023 from his role as CEO of OpenAI. After an employee revolt and a public apology from one of the company’s board members, Altman was rehired for the position just four days later.

The decision included a condition for OpenAI to reconfigure its board of directors. Altman’s return appeared to involve input from Microsoft CEO Satya Nadella, whose company made a $10 billion investment in OpenAI last year.

At the end of the event on Monday, Murati hinted at a forthcoming product announcement.

“We also care a lot about the next frontier,” Murati said. “Soon we’ll be updating you on our progress toward the next big thing.”

ABC News’ Victor Ordonez contributed to this report.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — McDonald’s could soon be lowering prices and possibly launching a new value meal to its menus.

The Golden Arches currently offer some individual items on its $1, $2, $3 menu, but it may be rolling out a new value meal with a McChicken or McDouble, fries and a drink for just $5, as Bloomberg first reported.

Knowing that consumers have grown tired of sticker shock on food, Chief Executive Officer Chris Kempczinski said McDonald’s would look to be “laser-focused on affordability.” He was spoking on the company’s first quarter earnings call late last month, after profits fell short of expectations.

People fed up with soaring prices have taken to social media to sound off about how much they’re paying for fast food.

Colleen Pipes, whose video went viral after she spent $14 on a fast food order, told ABC News, “I joked that this was fine dining now, because I might as well go at a sit down restaurant and be served [to] pay those type of prices.”

In March, fast-food prices were 33% higher compared to 2019, according to the Department of Labor, while grocery prices were up 26%.

Companies like Starbucks reported a slow in sales with a 7% drop in transactions at the Seattle-based coffee chain.

Starbucks told ABC News that some price increases at their stores has been a result of customers opting in for customizations on drinks, which can bump up the price.

Consumer behavior is also changing outside restaurants, while shoppers like Lorin Augeri of Tampa, Florida scour to score the best prices on groceries by going to multiple stores.

“I’ve learned how to map out where those things are going to be less expensive, or which stores have the items that me and my family enjoy eating,” she told ABC News.

According to the U.S. Department of Agriculture, the price of beef is predicted to increase 3.3% in 2024, with eggs up 4.8% and sugar and sweets up 4.3% this year.

Professor Roger Beahm, who teaches marketing at Wake Forest University School of Business, told ABC News that much has changed since the COVID-19 pandemic.

“Before the pandemic consumers tended to shop primarily at one grocery store — the pandemic was very disruptive,” he said. “Consumers couldn’t get a lot of the products that they wanted at one particular store. So they actually started shopping in more retail grocery stores.”

Consumers like Pipes are begging fast food chains and grocery stores to do something about it.

“Please lower your prices so you can’t go up any further,” she said.

While McDonald’s has not yet officially confirmed the new value meal, the company has long stated and reiterated that prices vary by location due to individual franchisee decisions.

Competitors like Burger King offer a $5 value meal, as does Wendy’s, who recently announced a new 6-piece chicken nuggets for free on Wednesdays with any mobile app purchase for rewards members.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Roughly 15 years after a housing bubble triggered the worst U.S. financial disaster since the Great Depression, some observers are voicing concern that the industry has fallen into another bubble.

Home prices are soaring, despite high mortgage rates that in theory should crimp demand and push down prices.

The share of U.S. homeowners under serious financial strain, meanwhile, jumped slightly at the outset of this year when compared with the final months of 2023, real estate data-firm ATTOM found in a report this week.

Despite these trends, experts who spoke with ABC News largely rejected fears of a housing bubble.

The frothy prices and the strain they place on prospective homebuyers are a cause for concern, they said, but the price hikes owe to an old-fashioned imbalance between supply and demand rather than the frenzied speculation characteristic of a bubble.

“The price increases have been quite remarkable but there aren’t abnormal factors driving them,” Lawrence Yun, chief economist at the National Association of Realtors, told ABC News. “It’s simply supply and demand — the normal reason.”

Two years ago, the Federal Reserve began an aggressive series of interest rate hikes in an effort to rein in inflation. Typically, such a policy would send mortgage rates higher and drive home prices downward as homebuyers wither under steep borrowing costs. In this case, the mortgage rates soared but prices skyrocketed alongside them.

For nine consecutive months, year-over-year existing-home prices have climbed, according to data released by the National Association of Realtors in March. Going back further, the median price of an existing home has jumped nearly 40% over the past four years, NAR data shows.

“It’s a strange market that seems like an anomaly,” Marc Norman, associate dean at the New York University School of Professional Studies and Schack Institute of Real Estate, told ABC News. “I can certainly see people wondering if it’s a bubble.”

The hot prices, however, stem from a straightforward instance of too much money chasing too few homes, experts told ABC News.

During the Covid-19 pandemic, homebuilding slowed when shortages of materials and workers made input costs more expensive, Norman said. Right as the supply blockages began to fade, the Fed raised interest rates, making it more expensive for developers to borrow the money required to launch projects.

The cooldown of housing construction has contributed to a dearth of homes. Housing supply stands 3.2 million homes short of the amount needed to meet demand, real estate and investment firm Hines said in a report last month.

“We haven’t built enough houses in this country and there’s still a lot of demand,” Christopher Mayer, a real estate professor at the Columbia University Business School, told ABC News. “The interest rates have made it more expensive to build and homes have gotten more costly.”

The current housing shortage contrasts sharply with the housing bubble that led to the Great Recession, experts said.

Back then, a sharp rise in prices drove a surge of homebuilding, which fueled an oversupply of housing. The abundance of homes, in turn, drove buyers to scoop up a property — or multiple properties — as appreciating assets rather than places to live. When new buyers couldn’t be found and the music stopped, prices crashed.

Prices stand unusually high in the current market but the shortage of housing places a limit on how far they can fall, since the lack of options for buyers will continue to push upward on prices, Ken Johnson, a real estate economist at Florida Atlantic University, told ABC News.

“I don’t see a dramatic crash,” Johnson said, adding that he expects a scenario in the coming months in which home prices plateau or dip slightly as they test the limits of consumers’ budgets. “On a scale of one to ten, with the last bubble being a nine, this is a two or three.”

Still, Johnson said, potential interest rate cuts could heat up the housing market even further, sending prices skyward and further threatening the stability of the sector.

On the other hand, Yun raised the possibility of a recession that forces layoffs and compromises the capacity for homeowners to afford their mortgages, potentially flooding the market with homes. Even in such circumstances, he said, “home price decline would be fairly modest.”

Even in the absence of a full-on bubble, the market could use some deflation, Norman said.

“The bigger problem to me than a bubble is just the lack of affordability,” he added. “Maybe the bubble doesn’t burst but some air gets let out of the balloon.”

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Target has announced that it will only sell their Pride Month collection in select stores after suffering a backlash and boycott last year during the 2023 Pride season.

The company says that instead of offering their Pride Month collection merchandise across all stores, they will be “offering a collection of products including adult apparel and home and food and beverage items, curated based on consumer feedback. The collection will be available on Target.com and in select stores, based on historical sales performance,” the company said in a statement on their website on Thursday.

“Target is committed to supporting the LGBTQIA+ community during Pride Month and year-round. Most importantly, we want to create a welcoming and supportive environment for our LGBTQIA+ team members, which reflects our culture of care for the over 400,000 people who work at Target. We have long offered benefits and resources for the community, and we will have internal programs to celebrate Pride 2024,” the company said.

Target says they are making other plans to celebrate Pride Month, including having a presence at local Pride events in Minneapolis – where the organization is headquartered – and around the country.

“Beyond our own teams, we will have a presence at local Pride events in Minneapolis and around the country, and we continue to support a number of LGBTQIA+ organizations,” a company spokesperson said in a statement obtained by ABC News on Friday. “Additionally, we will offer a collection of products for Pride, including adult apparel, home products, food and beverage, which has been curated based on guest insights and consumer research. These items, starting at $3, will be available in select stores and on Target.com.”

Target suffered a backlash and boycott last summer during Pride season which prompted the chain to pull some of the LGBTQIA+ merchandise, which, in turn, caused a separate backlash against that decision as they became the center of a culture battle.

“For more than a decade, Target has offered an assortment of products aimed at celebrating Pride Month,” Target said in May of 2023 amid the fury. “Since introducing this year’s collection, we’ve experienced threats impacting our team members’ sense of safety and well-being while at work. Given these volatile circumstances, we are making adjustments to our plans, including removing items that have been at the center of the most significant confrontational behavior. Our focus now is on moving forward with our continuing commitment to the LGBTQIA+ community and standing with them as we celebrate Pride Month and throughout the year.”

This year, however, in spite of their reduction of available Pride Month collection merchandise at all of their retail establishments, Target says that they will continue to support LGBTQIA+ organizations year-round, including Human Rights Campaign, Family Equality and more and will also be highlighting LGBTQ-owned brands during Pride Month and throughout the year in their stores and online.

“Target is committed to supporting the LGBTQIA+ community during Pride Month and year-round. Most importantly, we want to create a welcoming and supportive environment for our LGBTQIA+ team members, which reflects our culture of care for the over 400,000 people who work at Target,” a company spokesperson told ABC News on Friday. “We have long offered benefits and resources for the community, and we will have internal programs to celebrate Pride 2024.”

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — The borrowing cost for student loans is poised to reach a 16-year high.

The interest rate on a federal undergraduate student loan is expected to climb to 6.5% in July, which would mark its highest level since 2008, financial-aid expert Mark Kantrowitz told ABC News. The current interest rate of a new student loan is 5.5%.

The borrowing rate for student loans is set by adding a fixed amount of 2.05 percentage points to the yield on the 10-year Treasury bond, which is determined annually at a May auction. At the auction on Wednesday, 10-year Treasury bonds were sold at a 4.48% yield.

The yield for 10-year Treasury bonds, in turn, closely tracks the benchmark interest rate set by the Federal Reserve. That benchmark rate remained relatively low for years but has surged since 2022, when the Fed undertook an aggressive series of interest rate hikes to fight inflation. In response to rising interest rates, student loan rates have soared.

“It’s a shock because people had gotten used to low rates,” Kantrowitz said.

Since student loans are typically fixed, the forthcoming rate will apply to new loans but will not affect previous ones. The new rate will apply to loans for the 2024-2025 academic year beginning on July 1.

On a 10-year student loan of $28,000 under the forthcoming rate, the borrower will pay interest of about $10,000, which amounts to a roughly 35% higher cost for the borrower when compared with a student foregoing loans, Nancy Goodman, founder and executive director of higher-education nonprofit College Money Matters, told ABC News.

Under the forthcoming rate, such a borrower would pay an additional $2,000 over the course of the loan when compared with the current rate, Goodman explained.

“That’s a big burden,” Goodman added. “I hate to see that for students.”

In December, the Fed forecasted three quarter-point interest rate cuts over the course of 2024. Due in part to stubborn inflation since then, however, the Fed has recently cast doubt about whether those rate cuts will happen after all.

At a meeting earlier this month, the Fed held interest rates steady at their highest level since 2001.

Because the interest rate for student loans depends on the yield for 10-year Treasury bonds set at an auction in May, the postponement of interest rate cuts locked in high borrowing costs for students for the next academic year.

“Student loans have gotten caught up in the Fed’s attempt to rein in inflation, and the students who are borrowing are going to pay the price,” Goodman said.

The average annual tuition for a four-year, in-state public college stood at $11,260 for the most recent academic year, which amounted to a 2.5% increase before inflation adjustment, the College Board says.

For a private, four-year college, the average annual tuition stood at $41,540 over the most recent academic year, which marked a 4% increase before inflation adjustment, according to the College Board.

The jump in borrowing rates will exacerbate the rising cost of tuition, especially for low- and middle-income students, Kantrowitz said.

“College is becoming less and less affordable every single year,” Kantrowitz added.

Meanwhile, the rate of students pursuing federal loans has plummeted.

During the current academic year, roughly 35% of college students have completed the Free Application for Federal Student Aid, or FAFSA, according to data from the National College Attainment Network. That share of college students completing FAFSA forms marks a decline of 13 percentage points when compared to the previous academic year, the National College Attainment Network found.

The drop in aid applications suggests that many college students are pursuing low-cost options or opting against college altogether, Goodman said.

“Colleges should be a little concerned,” Goodman said. “Students are getting smarter about the cost of borrowing and colleges are having a more challenging time filling their classes.”

“This is hard for everybody,” Goodman added.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — ByteDance, the parent company of TikTok, struck the latest blow in a high-stakes clash between the social media company and the U.S. government, filing a lawsuit this week challenging a forced sale of TikTok as unconstitutional.

The case could nullify the measure enacted last month that requires ByteDance to sell the platform or suffer a ban of TikTok. The move raises a question for roughly 170 million TikTok users and others interested in the outcome: Can TikTok win in the courts?

Legal experts who spoke with ABC News said TikTok has a viable case on First Amendment grounds, saying the ruling will come down to how judges weigh free speech protections against national security concerns tied to Chinese ownership of the app.

In the end, federal courts will likely side in favor of the forced sale since they have shown themselves to be deferential to the government when it invokes national security interests, some experts predicted.

“This case is not a slam dunk in either direction,” Alan Rozenshtein, a law professor at the University of Minnesota who focuses on the First Amendment, told ABC News. “There’s a chance TikTok could win — it’s more likely the courts, including the Supreme Court, will uphold the law.”

TikTok did not immediately respond to ABC News’ request for comment.

In its lawsuit, ByteDance criticizes the measure enacted by the U.S. as an “unprecedented step” aimed at singling out and banning TikTok.

“For the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from participating in a unique online community with more than 1 billion people worldwide,” the lawsuit says.

The main argument brought by ByteDance centers on the government’s alleged infringement of the free speech rights of TikTok users and the company. The measure unlawfully invokes national security fears as a means of shutting down TikTok, leaving open the possibility of the government doing the same to any newspaper or website, the lawsuit argues.

“There are clearly First Amendment questions here,” Timothy Zick, a professor of constitutional law at William and Mary Law School, told ABC News. “It’s a viable claim.”

In support of its First Amendment challenge, ByteDance says in its lawsuit that the measure amounts to an outright ban, since the company will not be able to sell TikTok within the allotted nine-month period due to technical issues and commercial impediments.

The question of whether the measure equates to a ban of TikTok could end up being a key pivot point for the case, Amanda Shanor, a professor of First Amendment law at the University of Pennsylvania, told ABC News.

“A law that just prohibited TiKTok outright would be much more vulnerable to a First Amendment challenge than a requirement that ByteDance sell TikTok,” Shanor said. “The question otherwise becomes a little more like: Does TikTok have a First Amendment interest in keeping its parent company? To me, that’s a much weaker contention.”

The Department of Justice has yet to respond but is likely to argue that national security concerns should be prioritized over First Amendment protections, the experts said. The bipartisan passage of the law in the House and Senate on national security grounds will help bolster the government’s argument, some experts added.

The social media platform has faced growing scrutiny from some government officials over fears that user data could fall into the possession of the Chinese government and the app could be weaponized by China to spread misinformation.

There is little evidence that TikTok has shared U.S. user data with the Chinese government or that the Chinese government has asked the app to do so, cybersecurity experts previously told ABC News. In its lawsuit, ByteDance blasts the national security fears as “speculative.”

Rozenshtein, of the University of Minnesota, said the U.S. government may not provide direct evidence of Chinese tampering with TikTok. However, the government will likely argue that it holds substantial evidence for the “component parts” of its claim.

“We know China has engaged in widespread hacking,” Rozenshtein said. “We know China is willing to act in an extremely heavy-handed way to control its private corporations.”

Ultimately, some experts said, the courts will likely defer to the government’s assessment of national security risks and rule in favor of the law.

“The courts don’t want to substitute their own judgment for Congress’ or the president’s,” Rozenshtein said.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — TikTok announced on ABC News’ Good Morning America Thursday morning that beginning immediately, the social media giant will automatically label Artificial Intelligence-generated content when it is uploaded from certain platforms.

“Our users and our creators are so excited about AI and what it can do for their creativity and their ability to connect with audiences.” Adam Presser, TikTok’s Head of Operations & Trust and Safety, told ABC News in an exclusive interview. “And at the same time, we want to make sure that people have that ability to understand what fact is and what is fiction.”

The social media giant says they are becoming the first video-sharing platform to implement Content Credentials technology — an open technical standard providing publishers, creators, and consumers the ability to trace the origin of different types of media.

“This is like a nutrition label for content. It tells you what happened in the image, where it was taken, who made it, and the edits that were made along the way,” explained Adobe’s Chief Trust officer Dana Rao during an interview with ABC News earlier this year.

Adobe is one of the founding members of the Coalition for Content Provenance and Authenticity, a coalition of companies working together to push forward the adoption of this new digital standard.

And Content Credentials (digital nutrition labels) are becoming more widely used as a standard to certify digital content.

Earlier this year, OpenAI announced that they would be adding this technology to all images created and edited by DALL.E 3, their latest image model. OpenAI also said it plans to integrate Content Credentials for its video-generational Model, Sora, once it is launched more broadly.

Other products with generative AI capabilities like Adobe Firefly, Photoshop, Express and Microsoft Copilot are among others who are already using the technology to embed metadata into visual content created using their platforms.

“Parts of the picture are falling into place,” remarked Sam Gregory, executive director of Witness and expert on deepfakes. “It’s essential that specific companies make it as easy as possible to know when content was created with their tools by providing tool-specific classifiers.”

TikTok said the rollout of this new label starts Thursday and will apply to all users globally in the coming weeks. Over the coming months, TikTok will also start attaching Content Credentials to content, which will remain on the content when downloaded, allowing other platforms to read the metadata.

With the United States presidential election around the corner and elections stacked across the world, demands to detect AI-generated content online have been growing more intense.

“Neither is a silver bullet, not now or when they are fully utilized and provided – they are a form of harm reduction that makes it easier to discern when and how AI was used,” explained Gregory. “Malicious and deceptive creators and distributors will still find a way around them, but most of us will be happy to use them if they don’t compromise our privacy or our ability to create.”

Rao believes that we will move toward an online world where content that carries these digital nutrition labels might be more trustworthy or more valuable than those that do not.

“The real value is going to be in authenticity,” emphasized Rao. “The creators want to have an authentic communication with their viewers, and so this content credential allows creators to establish the level of authenticity that they want with their audience.”

Copyright © 2024, ABC Audio. All rights reserved.

(MOUNT PLEASANT, Wis.) — President Joe Biden is set to announce on Wednesday a $3 billion investment by tech giant Microsoft to build an artificial intelligence data center in southeast Wisconsin.

The sprawling facility will be located on the same plot of land where, in 2018, former President Donald Trump announced a multi-billion dollar investment by Taiwanese company Foxconn that largely failed to materialize.

The project sits at the convergence of several key Biden administration goals: upgrading U.S. infrastructure, rejuvenating domestic manufacturing and stewarding the responsible development of AI.

Here’s what to know about the economic impact of the project, the significance of the location and why Microsoft is building a data center in the first place.

What’s the expected economic impact of the data center?
The data center in the midsize city of Racine, Wisconsin, is expected to create 2,300 construction jobs and an additional 2,000 permanent jobs at the facility, the White House said in a press release on Wednesday.

The burst of employment will coincide with a venture undertaken by Microsoft to open a so-called “Datacenter Academy,” which will train roughly 1,000 people for data center and other technology roles by 2030, the White House said.

Microsoft will also open an innovation lab in the region, which will aim to educate about 1,000 business leaders on how to adopt AI for their enterprises, the White House added.

In a statement, Microsoft President Brad Smith said the data center would help restore the manufacturing sector in Wisconsin. In the 1960s and 70s, the state lost thousands of manufacturing jobs when companies relocated plants overseas.

“Wisconsin has a rich and storied legacy of innovation and ingenuity in manufacturing,” Smith said. “We will use the power of AI to help advance the next generation of manufacturing companies, skills and jobs in Wisconsin and across the country.”

The datacenter makes up a portion of the $6.9 billion invested in infrastructure, clean energy and semiconductor projects in Wisconsin since Biden took office, the White House said, part of an administration initiative devoted to domestic industry called “Invest in America.”

In all, roughly $540 billion have been invested nationwide as part of the Biden administration’s initiative, according to the White House.

What’s the significance of the location of the project?
The site of the Biden announcement on Wednesday marks the same location where Trump touted a different corporate investment six years ago.

Back then, Trump boasted of a $10 billion investment by electronics manufacturer Foxconn, which he said would create about 13,000 manufacturing jobs.

Despite razing nearby homes and attracting about $3 billion in state tax incentives, Foxconn has largely failed to deliver on its lofty goals. In 2022, the company said it employed more than 1,000 workers in the state, The Milwaukee Journal Sentinel reported.

The Biden administration has characterized the AI data center as an effort to make up for the challenges endured by the local area under Trump. It will “showcase a community at the heart of his commitment to invest in places that have been historically overlooked or failed by the last administration’s policies,” the administration said.

Why open a data center in the first place?
The computing power required to train and deploy artificial intelligence tools like ChatGPT has triggered a spike in demand for data centers.

The complexes, which typically span 100,000 square feet, provide the brick-and-mortar infrastructure underlying the explosion of the AI sector.

Microsoft, which owns a major stake in ChatGPT-maker OpenAI, has become the most valuable company in the world. Shares of the company have jumped 9% so far this year.

In 2022, roughly 2,700 data centers in the U.S. accounted for over 4% of the nation’s electricity use, according to an International Energy Agency report released in January. By 2026, that share of electricity use is expected to reach 6%.

The proportion of U.S. electricity use for data centers is expected to continue to climb in the ensuing years, the report said, citing in part anticipated broader adoption of AI.

By 2026, the AI industry alone is expected to consume at least 10 times its energy demand from just three years prior, the IEA report found.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Fast casual restaurant chain Panera Bread is doing away with highly caffeinated Charged Lemonade drinks that have been at the center of multiple wrongful death lawsuits since last fall.

A spokesperson for Panera confirmed to ABC News that is has undergone a “recent menu transformation,” as first reported by Bloomberg.

In an emailed statement, the spokesperson said that the company “will be focusing next on the broad array of beverages,” which includes “low sugar and low-caffeine options.”

The spokesperson declined to comment further to ABC News on litigation or further details on the Charged Lemonade, including when the controversial drink will be pulled from menus.

Panera has faced at least three separate lawsuits regarding its caffeinated lemonade drink since last fall.

In documents previously obtained by ABC News, the lawsuits claimed high levels of caffeine as a result of drinking Panera’s Charged Lemonade led to health complications and two customer deaths.

The latest of the ongoing suits was filed on Jan. 16 and alleged the drink led to “permanent” heart problems suffered by the plaintiff.

Panera has denied any wrongdoing.

In a statement last October following the initial wrongful death lawsuit, which involved 21-year-old University of Penn student Sarah Katz, who died from cardiac arrest after drinking the Charged Lemonade, a Panera spokesperson told ABC News, “We were saddened to learn last week about the tragic passing of Sarah Katz. While our investigation is ongoing, out of an abundance of caution, we have enhanced our existing caffeine disclosure for these beverages at our bakery cafes, on our website and on the Panera app.”

The company issued a separate statement to ABC News in December, following a second wrongful death lawsuit involving 46-year-old Dennis Brown, who had a chromosomal disorder and avoided energy drinks due to high blood pressure, according to his family. According to the complaint, Brown had been drinking charged lemonades for six days before he died, allegedly believing they contained “a reasonable amount of caffeine safe for him to drink.”

“Panera expresses our deep sympathy for Mr. Brown’s family. Based on our investigation, we believe his unfortunate passing was not caused by one of the company’s products,” a spokesperson for Panera told ABC News at the time. “We view this lawsuit, which was filed by the same law firm as a previous claim, to be equally without merit. Panera stands firmly by the safety of our products.”

Panera did not respond to a request for comment on the third lawsuit, which was filed in January and involved a woman named Lauren Skerritt, who claimed she suffered “permanent cardiac injuries” as a result of drinking Panera’s Charged Lemonade.

Copyright © 2024, ABC Audio. All rights reserved.