WebProNews

Tag: CNBC

  • Facebook Plans to Hire 10,000 People This Year In Product and Engineering

    Facebook Plans to Hire 10,000 People This Year In Product and Engineering

    Facebook plans to hire some 10,000 people for its product and engineering teams this year, according to COO Sheryl Sandberg.

    In an interview with CNBC, Sandberg was asked if she would pledge not to layoff any employees, as many companies have done in the midst of the economic crisis. Sandberg took it a step further, indicating Facebook planned to keep their existing employees and hire thousands more.

    “Our hiring is keeping at a very, very aggressive clip,” said Sandberg.

    “We feel fortunate to be able to do that,” she continued. “We also have the responsibility to do that — to keep our own employees, but hopefully hire more because we need them.”

    The new hires will no doubt be an asset to the company as it struggles to keep up with demand as people use the social media platform to stay connected during lockdowns, shelter in place orders and remote work.

  • FCC Approves Up to 1 Million Starlink Ground Antenna

    FCC Approves Up to 1 Million Starlink Ground Antenna

    Starlink just passed a major milestone in its plans to provide broadband internet via a constellation of satellites: approval for 1 million ground antenna.

    SpaceX, Elon Musk’s other company, has been launching the Starlink constellation of satellites in batches of as many as 60 at a time. Eventually, some 12,000 satellites will provide high-speed internet worldwide. In order for the system to work, however, there has to be a network of ground antenna to relay the signal to their final destinations.

    According to CNBC, “the Federal Communications Commission (FCC) has authorized SpaceX to begin rolling out as many as 1 million of the ground antenna the company will need to connect users to its Starlink satellite internet network.”

    Each antenna will be roughly 19 inches across and should be fairly easy to recognize.

    “It looks like a UFO on a stick,” said Elon Musk, according to CNBC. “It’s very important that you don’t need a specialist to install. The goal is for … just two instructions and they can be done in either order: Point at sky, plug in.”

    Once operational, Starlink should be a good internet option for under-served communities, where cable, DSL, fiber or 5G are not viable options.

  • Coronavirus: Apple Limiting iPhone Orders

    Coronavirus: Apple Limiting iPhone Orders

    Amid supply chain constraints as a result of the coronavirus pandemic, Apple is limiting online iPhone orders.

    According to CNBC, “Apple’s online store began limiting U.S. customers to two units of each iPhone model per person this week. Customers can still buy more than two iPhones in one order, but they would have to be different models — for instance, two iPhone 11s and two iPhone 11 Pros.

    “The restriction applies to the iPhone 8, iPhone 8 Plus, iPhone XR, iPhone 11, iPhone 11 Pro, and iPhone 11 Max.” Apple is also limiting orders of the new iPad Pro the company announced on Wednesday.

    The news is the latest indication the coronavirus has had a significant impact on Apple’s supply chain. The company previously announced it would miss its quarterly guidance as a result of the virus, while analysts believe the supply chain issues could persist and impact Apple’s 2021 earnings. Apple also warned its store personnel that warranty replacement iPhones were in short supply.

    Apple taking the drastic step of limiting purchases is further evidence the company doesn’t see its supply chain catching up anytime soon.

  • Amazon Working to Cure the Common Cold

    Amazon Working to Cure the Common Cold

    Amazon is working on a cure for the common cold, under the aptly named “Project Gesundheit.”

    According to CNBC, Amazon has a research and development group called the Grand Challenge, which focuses on the biggest challenges facing the world. Amazon wants to make sure it can see the next big thing coming, rather than be surprised by a shift in industry or a disruptive startup.

    As part of the Grand Challenge, Project Gesundheit is “hoping to develop a vaccine, but is exploring a variety of approaches to the problem. Internally, the effort is sometimes referred to as the ‘vaccine project.’” The effort has been going on for years, although Amazon will not acknowledge either the project’s existence or that of the Grand Challenge.

    If Amazon is successful, it would be a boon to both the company and the U.S. economy. As CNBC points out, in 2003 a study showed the common cold costing the economy some $40 billion a year, a figure that is likely much higher now.

  • Apple and Google Limiting Coronavirus Applications

    Apple and Google Limiting Coronavirus Applications

    Apple and Google are doing their part to combat misinformation and profiteering from the coronavirus, by limiting apps to those from reputable sources.

    One of the biggest challenges related to the coronavirus is the spread of misinformation regarding it, as well as companies charging exorbitant prices for supplies. Social media platforms have already implemented rules designed to help slow the spread of misinformation, and now the companies controlling the two biggest mobile app stores are joining the effort.

    According to CNBC, Apple and Google are cracking down on apps that are not from reputable sources. One developer was told by an Apple employee that only apps released by a health or government institution were being accepted on the App Store. Similarly, the Google Play Store has rules preventing apps that “capitalize on a natural disaster” or “atrocity” or that “profit from a tragic event with no discernible benefit to the victims.”

    While some developers are not happy with the rules, the two companies are in a tough spot as they try to balance the need to limit coronavirus misinformation, spam and profiteering, with the potential benefits of apps that could legitimately help individuals track the spread of the disease.

  • Google Cloud Reorganizing, Eliminating Roles

    Google Cloud Reorganizing, Eliminating Roles

    Google Cloud is undergoing a reorganization and is eliminating some roles as it works to better compete with its rivals.

    Google currently sits a distant third among U.S. cloud providers, but CEO Thomas Kurian has made no secret of his goal to become at least the number two provider within five years. While the company has a long way to go toward that goal, Google’s cloud business was a positive note in the company’s most recent quarterly results in which it missed projected revenue. One thing that was clear from the report was that, at $8.9 billion in 2019, its cloud business is increasingly important to Google.

    In an effort to further streamline operations, as well as better align with international markets, Google is reorganizing its cloud business and eliminating some roles.

    “We recently communicated organizational changes to a handful of teams that will improve how we market, partner, and engage with customers in every industry around the globe,” the company told CNBC on Friday. “We made the difficult, but necessary decision to notify a small number of employees that their roles will be eliminated.”

    Google says less than 50 people are impacted by the change and is working to find them other roles within the company.

  • Tesla Has Significant Battery Tech Advantage

    Tesla Has Significant Battery Tech Advantage

    Citing Cairn Energy Research Advisors, CNBC is reporting that Tesla has a significant advantage in electric battery technology.

    The electric vehicle pioneer is facing more and more competition from startups and established rivals. Rivian has made headlines as a more traditional-looking electric vehicle manufacturer, while Ford has also had its fair share of news for an all-electric Mustang Mach-E and upcoming F-150. GM, Toyota, Subaru and others are all planning to roll out all-electric lineups, with Subaru committed to producing only electric vehicles by the mid-2030s.

    According to Sam Jaffe, managing director of Cairn Energy Research Advisors, despite the competition, Tesla still has a major advantage in the battery tech it uses. While most automakers use battery packs that have pouch or prismatic cells, “Tesla is the only automaker to use cylindrical battery cells in its battery packs.” In the last four years, the cost of cylindrical cell battery packs has dropped over $100 per kilowatt hour (kWh), hitting $158.27 per kWh last year. In contrast, the cost of the competition’s battery packs is still running over $200 per kWh.

    While a difference of less than $50 per kWh may not seem like a lot, as manufacturers ramp up production and begin mass-producing electric vehicles, that expense will add up quickly. In addition, Jaffa says Tesla also has an advantage not only in its more advanced cylindrical battery cells, but also in its battery management system.

    “Tesla has really revolutionized that part of the battery pack and made it much more sophisticated, and it gives them the competitive advantage,” said Jaffe, according to CNBC.

  • Coronavirus Impacting Apple’s China Operations

    Coronavirus Impacting Apple’s China Operations

    When discussing Apple’s Q1 2020 results, CEO Tim Cook told CNBC the coronavirus is impacting the company’s operations in China.

    According to Cook, the company is restricting employee travel in China and has already closed one store. Apple is also cutting back retail store hours as a precaution.

    “We’re restricting travel to business critical travel,” Cook told CNBC’s Josh Lipton. “For employees that are in the Wuhan area, we are providing care kits and supplying them across our employee population in China as well.”

    One of Apple’s main manufacturers, Foxconn, earlier stated it foresaw no impact to its manufacturing timetables as a result of the coronavirus. While that may have been some good news for Apple, it appears the overall effects of the outbreak will still impact the company.

    In fact, in their quarterly earnings report, Apple issued a wider-than-normal guidance for Q2 largely because of the virus.

    “The situation is, is emerging and we’re still gathering lots of data points and monitoring it very closely,” said Apple CFO Luca Maestri, according to Digital Trends. “We have a wider than usual revenue range for the second quarter, due to the greater uncertainty. We’re closely following the development of the coronavirus.”

  • Ericsson CEO Says His Company Has ‘No One Ahead Of Us’ In 5G Tech

    Ericsson CEO Says His Company Has ‘No One Ahead Of Us’ In 5G Tech

    In an interview with CNBC, Ericsson CEO Borje Ekholm countered claims that his company is behind Huawei in 5G, or that it’s getting a free ride due to security concerns about the Chinese company.

    “First, this whole notion that we get some sort of free ride here, I wouldn’t say,” Ekholm said. “So far, there are very little effects on our order books from any of these discussions. It’s more, actually, creating uncertainty in the market, reducing investments overall.

    “So I think the whole uncertainty that we have geopolitically is not positive. At the same time, I hope we find a solution that allows the world to move forward. Security aspects are going to be critical in a 5G world—we connect everything. Of course, that’s going to put extra security demands on the networks, cybersecurity is a bigger threat. So we need to think differently about security. To some extent it’s a national security policy.”

    When asked specifically if Ericsson was behind Huawei in technology, or in its ability to deliver the scale and economy Huawei is often credited with, Ekholm was adamant that his company is in the lead.

    “Just a couple of facts, so we get those ones in there:

    “The first networks launched—they were in North America—it was actually with our equipment. The first operational 5G networks had the gear from us. It’s hard to be behind then.

    “The second one is, if you look at the first European network launched, it was here in Switzerland. 5G launched with Swisscom and that’s 100% an Ericsson customer. By the way, Swisscom has the best network of all operators globally and that’s all Ericsson equipment. So I find it’s a bit difficult to say that we’re behind when I see no one ahead of us.”

  • Tesla Says No ‘Unintended Acceleration’ In Vehicles

    Tesla Says No ‘Unintended Acceleration’ In Vehicles

    Following a petition to the National Highway Traffic Safety Administration (NHTSA) to recall Tesla vehicles for “unintended acceleration,” Tesla has responded saying there is no evidence to support the claim.

    Brian Sparks originally filed the request on September 30, 2019 and said “it appears ​Tesla vehicles have a Sudden Unintended Acceleration Problem​ and ​Tesla must know about this problem.”

    In their response today, Tesla calls the petition “completely false” and says Sparks is a Tesla stock short-seller. CNBC confirms that Sparks “is currently shorting Tesla stock,” calling into question his motivations.

    In the meantime, after going into the technical details as to why unintended acceleration should not be possible, Tesla highlighted their ongoing cooperation with the NHTSA:

    “We are transparent with NHTSA, and routinely review customer complaints of unintended acceleration with them,” says the blog post. “Over the past several years, we discussed with NHTSA the majority of the complaints alleged in the petition. In every case we reviewed with them, the data proved the vehicle functioned properly.”

  • Google Cloud Partners With Lufthansa In Bid To Ease Impact of Flight Delays

    Google Cloud Partners With Lufthansa In Bid To Ease Impact of Flight Delays

    Google Cloud scored a big win as German airline Lufthansa has selected the platform to help ease the impacts of flight delays, according to CNBC.

    Lufthansa plans on migrating its assorted IT systems to Google Cloud, providing much needed uniformity to their processes. This should enable the airline to better optimize its operations and come up with solutions more quickly when issues do arise and cause delays.

    “By combining Google Cloud’s technology with Lufthansa Group’s operational expertise, we are driving the digitization of our operation even further,” said executive board member Detlef Kayser. “This will enable us to identify possible flight irregularities even earlier and implement countermeasures at an early stage.”

    According to a company spokesperson, Lufthansa went with Google, over AWS or Microsoft, due to “their high technical expertise and their databases with very good data quality.”

    With Google a distant third behind Microsoft and AWS, a deal of this size, importance and mission-critical nature could help it gain similar contracts and make up ground in the cloud race.

  • PSA: Cybercriminals Preying On Nest Users With ‘Sextortion’ Scheme

    PSA: Cybercriminals Preying On Nest Users With ‘Sextortion’ Scheme

    Following reports of connected security cameras, such as Ring and Nest, being targeted by hackers, scammers are preying on people’s fears with a “sextortion” scheme, according to CNBC.

    The scam relies on “social engineering,” or the ability to convince an unsuspecting victim do something they wouldn’t normally do, through the use of charm, guilt, shame or authority. The scammer has usually done enough research and has enough information and half-truths to make the scam seem credible.

    According to CNBC, IT security firm Mimecast saw “a huge spike in the new tactic, with more than 1,600 scam emails intercepted in just a two-day period from Jan. 2 to Jan. 3.”

    When describing this particular scam Kiri Addison, head of data science, said “this one is a bit different. It stood out, because it’s really convoluted in a way. It starts out with a single email saying ‘we’ve got some nude photos of you.’”

    The email will include a link to a website showing Nest footage from an innocent area the person could have visited, such as a bar or restaurant. The idea is to make the person believe they’ve been monitored and recorded over a long period of time, in any number of situations, making it more believable they may have been recorded in a compromising position.

    Ultimately, the victim is walked through the process of establishing a bitcoin wallet and paying the scammers $500 to keep their photos and videos from being released on porn sites. It’s important to understand there aren’t actually any photos or videos.

    As CNBC points out, “if you receive a sextortion email, the best thing you can do is ignore it.

    “Although internet-connected cameras and smartphones can be hacked, this is a very rare event. It’s practically non-existent for such a hack to be combined with an extortion demand.”

  • Advertisers Balk At Google’s Plan To Kill Third-Party Cookies

    Advertisers Balk At Google’s Plan To Kill Third-Party Cookies

    In what is a surprise to no one, advertisers are begging Google not to kill third-party cookies in Chrome, according to CNBC.

    Google announced earlier this week its plans to phase out third-party cookies within two years. The company is trying to improve user privacy, while at the same time addressing the needs of advertisers, something it does not believe other browser makers do. While Apple’s Safari and Mozilla’s Firefox both include the ability to block third-party cookies, Google believes those solutions leave advertisers in the cold and encourage them to use more drastic and invasive methods to track users and make money.

    In their post announcing the plans, Google was light on details, promising to continue working with the web and advertising community to deliver a solution that was beneficial to all parties. That doesn’t seem to be enough for advertisers, however, as Dan Jaffe, EVP of government relations at the Association of National Advertisers, and Dick O’Brien, EVP of government relations at the American Association of Advertising Agencies, issued a statement protesting Google’s decision.

    According CNBC, the statement said Google’s plans“may choke off the economic oxygen from advertising that startups and emerging companies need to survive.”

    The advertising groups acknowledged Google’s efforts to implement an alternative to the current cookie-based methods, but urged caution so as not to disrupt the web’s ecosystem with a half-baked solution.

    “In the interim, we strongly urge Google to publicly and quickly commit to not imposing this moratorium on third party cookies until effective and meaningful alternatives are available,” the statement said.

    As CNBC highlights, these same groups have expressed opposition to California’s CCPA privacy law, so it should be no surprise they aren’t happy with anything that impedes their ability to advertise—not even in the name of protecting user privacy.

  • Senators Propose Over $1 Billion To Fund Huawei Alternatives

    Senators Propose Over $1 Billion To Fund Huawei Alternatives

    CNBC is reporting that a bipartisan group of senators has introduced legislation to spend more than $1 billion to fund 5G alternatives to Huawei.

    Huawei is currently the number one provider of 5G equipment around the world. In spite of that, the company has faced ongoing criticism and accusations that it represents a risk to other countries’ national security because of its close ties to Beijing. All Chinese corporations are required to cooperate with the Chinese government and intelligence agencies, but Huawei is believed to have closer ties to Beijing than most.

    Even so, carriers have warned their governments that going with non-Huawei alternatives could add years of work and billions in cost. Huawei is also seen as having some of the best 5G technology on the market. This puts carriers in the unenviable position of choosing between inferior technology or inferior security.

    Now a group of bipartisan senators wants to address that, with legislation that would allocate over $1 billion to leveling the playing field. According to CNBC, “Chairman of the Senate Intelligence Committee Richard Burr, R-N.C., is a co-sponsor of the bill, alongside Republican Senators Marco Rubio of Florida and John Cornyn of Texas. Democratic Senators Bob Menendez of New Jersey and Michael Bennet of Colorado are also co-sponsors alongside Warner.”

    The bill would authorize the Federal Communications Commission to “direct at least $750 million or up to 5% of annual auction proceeds from new auctioned spectrum licenses to create an open-architecture model (O-RAN) research and development fund.”

    In addition, “another $500 million would become a Multilateral Telecommunications Security Fund, which would be available for 10 years ‘to accelerate the adoption of trusted and secure equipment globally and to encourage multilateral participation.’”

    If the bill gets passed into law, it could finally help create viable alternatives to Huawei in the U.S. market.

  • Google ‘Unrecognizable’ To Company Veterans

    Google ‘Unrecognizable’ To Company Veterans

    Google has undergone a number of major changes over the years, not the least of which is the two founders stepping down from their roles. Many of those changes have caused the company to be virtually “unrecognizable” to many Google veterans, according to CNBC.

    For many workers who spoke with CNBC, 2018 was a pivotal year that showed how much things had changed. Project Dragonfly became public knowledge, exposing Google’s attempt to build a censored search engine for China. In a company that had long treasured a reputation for open communication with its employees, the project had been kept on a need-to-know basis.

    Despite ending the project when employees expressed concern about the ethics of it, for many the damage had already been done.

    “There’s no way a few years before, they would have had a secret project with these kinds of ethical concerns,” Raph Levien, a former level 6 engineer who left Google after 11 years, told CNBC. “It crossed the line and felt misleading. It definitely felt like this was Google changing.”

    Another factor that has hurt the company’s reputation internally is how it has handled sexual abuse allegations, paying executives millions in severance packages despite allegations. The size of the company has also played a role, as it is much harder for a company of “more than 100,000 workers, many of whom are contractors instead of full-time employees,” to maintain the culture it started with.

    One thing is clear, based on CNBC’s report: For a company that is already in the spotlight for privacy issues and antitrust concerns, an internal breakdown of the very culture that made Google what it is, is the last thing the company needs.

  • Analyst Predicts 5G iPhone Will Lead to a 2020 ‘Supercycle’ For Apple

    Analyst Predicts 5G iPhone Will Lead to a 2020 ‘Supercycle’ For Apple

    With Apple expected to release four 5G iPhones in 2020, at least one analyst is expecting it to be a “supercycle” for the company’s stock.

    Wedbush analyst Dan Ives told CNBC he believes the demand for 5G iPhones will have a significant impact on the stock price. As a result, Ives raised his target for Apple’s stock to $350, a significant increase over the $284 closing price Monday.

    As CNBC points out, recent Piper Jaffray research shows an increasing level of interest in upgrading to a 5G iPhone, with nearly a quarter of iPhone owners willing to upgrade to a $1,200 model.

    With interest that high, it’s little wonder some reports predict Apple will sell 80 million units in 2020, with at least one source placing that number as high as 100 million. Similarly, Strategy Analytics predicts Apple will easily take the 5G crown in 2020, leap-frogging the competition to take the top spot.

    Even so, not all analysts share Ives’ bullish outlook. Gene Munster, Loup Ventures managing partner, told CNBC that the first year of 5G iPhones would be a “disappointment for investors,” blaming poor coverage on the part of the carriers.

    With such different viewpoints in play, 2020 is shaping up to be a fascinating year for Apple and their 5G plans.

  • Apple Could Move to Two iPhone Releases a Year; Four iPhones Expected in 2020

    Apple Could Move to Two iPhone Releases a Year; Four iPhones Expected in 2020

    According to CNBC, analysts at J.P. Morgan believe Apple could be switching up its iPhone release schedule, releasing new models twice a year instead of once.

    Since 2011, Apple has traditionally released iPhones either in September or October. As the market has become increasingly more competitive, however, an entire year between major releases has allowed competitors to leapfrog the iPhone’s features.

    In a note to investors, J.P. Morgan analyst Samik Chatterjee cites supply chain checks as the basis for their prediction.

    “Based on our supply chain checks, we are expecting a strategic change in the launch cadence with the release of two new iPhone models in 1H21 followed by another two in 2H21, which will serve to smooth seasonality around the launch.”

    In the short-term, the analysts also believe there will be a total of four iPhones released in 2020, instead of the normal three. Even more significant, they believe that all four of the devices next year will have both OLED screens and 5G support, according to Chatterjee’s note.

    “The 2H20 lineup will include all OLED phones, with screen sizes of 5.4″ (one model), 6.1″ (two), and 6.7″ (one), broadening the screen size range from 5.8″ to 6.5″ in 2019. We expect the two higher end models (one 6.1″, one 6.7″) to include mmWave support, triple camera and World facing 3D sensing, while the lower-end models (one 6.1″, one 5.4″) will include support for only sub-6 GHz and dual camera (no World-facing 3D sensing).”

    J.P. Morgan has raised its 12-month price target for Apple to $296 from $290.

  • Filings Reveal There Was a Bidding War Over Fitbit

    Filings Reveal There Was a Bidding War Over Fitbit

    Fitbit made news recently when it was announced that Google would be purchasing the wearables firm. According to CNBC, it appears Facebook was also interested and “bid several times to acquire” the company.

    An SEC filing referred to “Party A,” a previously unidentified third party who made several bids to buy Fitbit.

    “According to the filing, Fitbit CEO James Park had dinner with ‘the chief executive officer of Party A’ on June 11, 2019 to discuss the wearables technology landscape. That person would be Facebook CEO Mark Zuckerberg, sources said. Park and other members of Fitbit’s senior management had dinner with Zuckerberg again on July 2, the filing said. Zuckerberg and Park met once more in September, according to the filing.”

    Evidently Facebook’s best offer, one they would not budge from, was $7.30 a share. A day after Facebook made its final offer, Fitbit signed an exclusivity deal with Google for $7.35 a share.

    While some users have understandably been concerned about privacy in the wake of the announcement Google was purchasing Fitbit, it’s probably a safe bet that far more users would be concerned if Facebook was the buyer.

  • Microsoft Teams Reaches 20 Million Daily Users, Double Slack’s User Base

    Microsoft Teams Reaches 20 Million Daily Users, Double Slack’s User Base

    Just four months after Microsoft Teams reached 13 million daily users, the company is reporting that number has reached 20 million.

    Microsoft Teams is a unified communication platform that competes with Slack, Google Hangouts and Cisco Webex Teams. Not surprisingly, since it’s part of Office 365, Teams integrates with Microsoft’s other applications.

    Slack, in contrast, reported last month that it had 12 million daily users. While that is substantially less than Microsoft’s 20 million, Slack claims that its users are far more engaged than those of Teams and other platforms. Even so, that hasn’t prevented Slack’s stock from taking a hit in the wake of Microsoft’s announcement.

    CNBC reports that Wedbush analysts Daniel Ives and Strecker Backe told clients:

    “Our checks in the field indicate Slack will have significant difficulty further penetrating the enterprise given the significant competitive offering from Microsoft’s Teams product that could slow growth going forward quicker than the Street is anticipating.”

    According to CNBC, “Ives and Backe initiated coverage of Slack with the equivalent of a sell rating.”

    Slack has estimated the workplace collaboration market to be worth some $28 billion, leaving plenty of room for multiple companies. However, to survive the competitive edge larger players bring, Slack will need to continue to evolve build on its strengths.

  • John Legere Not Leaving T-Mobile For WeWork

    John Legere Not Leaving T-Mobile For WeWork

    The Wall Street Journal reported earlier this week that WeWork was in talks with T-Mobile CEO John Legere to take over at the office space company. Now, according to Alex Sherman at CNBC, Legere is not taking the job.

    In many ways, Legere was a natural choice for a WeWork CEO. WeWork is being taken over by SoftBank, the parent company of Sprint. T-Mobile and Sprint are nearing the end of a merger deal years in the marking. With FCC and DOJ approval, the merger only has to survive a lawsuit from a handful of states. In the meantime, however, Legere is a known factor for SoftBank leadership, as they have worked with him throughout the merger process. That first-hand experience no doubt made him a top candidate for the job.

    Sources familiar with the situation, however, said that Legere has no plans on leaving T-Mobile. The news is no doubt a welcome relief to T-Mobile investors. During his time with the company, Legere has taken it from a distant fourth place among U.S. carriers to a solid third place and growing at a record rate. Legere was also instrumental in helping get approval for the merger, and will be a steadying influence as the two companies combine.

    It should be interesting to see how much T-Mobile can grow with the combined revenue, subscribers and spectrum of the two companies, not to mention Legere’s continuing leadership.

  • Google Faces Government Scrutiny Over “Project Nightingale” and Patient Privacy

    Google Faces Government Scrutiny Over “Project Nightingale” and Patient Privacy

    On the heels of news that Google has partnered with Ascension to collect data on millions of American patients, CBS News is reporting that government officials are opening an inquiry into the deal.

    Ascension is the second largest chain of hospitals and healthcare facilities in the U.S. The program, “Project Nightingale,” which began last year, provides Google with detailed information on patients in 21 states, including names, dates of birth, lab results, diagnoses, hospitalization records and more. Together, the information gives Google a patient’s complete health record. Google is using the information to design AI-based tools to assist in patient diagnostics.

    Despite the fact the agreement is likely legal under the Health Insurance Portability and Accountability Act of 1996, Google is facing backlash in the wake of reports on the project. Even Jim Cramer, co-founder of TheStreet.com, questioned the wisdom of Google’s actions, saying the company “did things we regard as being unauthorized by some, so therefore a U.S. Attorney or someone is going to look into it….The country is hyper-sensitive to what Google does and Facebook does. So why aren’t they a little more thoughtful?”

    Google’s own reaction to the backlash has done little to improve the situation, with a cloud executive penning the initial blog responding to the story, rather than any of the health-care professionals on the company’s payroll. In addition, as CNBC reports, Google’s secrecy and use of cryptic code-names only adds fuel to the flames of suspicion that the company is up to something underhanded. As a result, the Department of Health and Human Services is launching an inquiry into Project Nightingale.

    Whatever the outcome, there can be no denying that Project Nightingale represents another privacy misstep for Google, right as the company is trying to expand into other privacy-sensitive industries and markets.