Good morning readers. Mira Murati, OpenAI’s CTO left the Wall Street Journal and everyone else guessing when asked (during an interview) about the data sources the company has used to train their new AI video-generating model, Sora. In the interview, WSJ reporter Joanna Stern asked whether Sora had been trained with data from social media platforms like YouTube, Instagram or Facebook. “I’m actually not sure about that,” Murati replied, adding, “You know, if they were publicly available — publicly available to use. But I’m not sure. I’m not confident about it.” This uncertainty has raised some concerns, especially considering OpenAI's history of legal disputes over data usage. Despite Murati's leadership in major projects like Dall-E 3 and ChatGPT-4, clarity on data sourcing remains a mystery for Sora.

Let’s jump into today’s storylines.

In today’s digest:

• Did the US government pressure tech companies to suppress information related to covid?

• Headline Hustle: Vladimir Putin wins presidential election in landslide victory, FTC looking into Reddit’s AI data-licensing practices, Uber & Lyft are leaving Minneapolis over a pay dispute

• The settlement poised to make homeownership more accessible

• The Week Ahead: What to Expect

• Pulse Points: What’s Trending

POLICY

Misinformation or censorship? The Supreme Court's latest free speech battle

This week, the US Supreme Court will consider whether the government crossed a constitutional line by pushing social platforms to remove or demote the spread of misinformation about vaccines, covid lockdowns and other public-health efforts in a time of crisis.

The spark that lit the fuse

The initial spark was lit by Robert F. Kennedy's suggestion via tweet that Hank Aaron's death was linked to the COVID-19 vaccine, a claim that prompted a White House employee to nudge Twitter (now X) towards removing the post. Meta Platforms, following suit, suspended Kennedy from Instagram, and Facebook, stirring a debate larger than the sum of its parts: the battle against misinformation. The White House, in its campaign to put an end to vaccine hesitancy and lockdown criticisms, found itself in a sticky situation, communicating with online platforms to suppress what it deemed dangerous misinformation.

The upcoming case, set for Monday, revolves around a lawsuit filed in 2022 by Republican attorneys general from Missouri and Louisiana.

• They claim that the federal government has been censoring information while pretending to fight misinformation.

• Their argument is that the government's control wasn't direct but rather implied through hints of potential new rules and enforcement actions related to antitrust laws.

The lawsuit also mentions instances where speech was allegedly suppressed on topics unrelated to the pandemic. For instance, they claim that the FBI influenced online platforms to think that a New York Post story about Hunter Biden before the November 2020 election was Russian disinformation, even though it wasn't.

The administrations response? You’re trippin. The Biden administration's stance is that the plaintiffs have overstated the government's role. According to U.S. Solicitor General Elizabeth Prelogar, Missouri and Louisiana couldn't point out a single case where the government punished platforms for not moderating content.

The Supreme Court's agenda is packed with modern-day issues regarding freedom of speech. Recently, they heard arguments in cases questioning whether state governments can control how social media companies moderate content. In a (separate) recent ruling, the court also established guidelines for when public officials can be legally responsible for blocking critics on social media.

IN THE KNOW

Headline Hustle

🇷🇺 Vladimir Putin will be Russia’s president for six more years. President Vladimir Putin clinched a resounding win in Russia's recent election, tightening his grip on power despite opposition outcry and global skepticism. With an overwhelming 87.8% of the vote, Putin secures another term amid concerns over political suppression. Tensions escalate over Russia's actions in Ukraine, painting Putin as an autocratic figure in the eyes of the West. Amidst geopolitical complexities, Putin aims to shape Russia's future while facing domestic dissent and global scrutiny.

🔍️ FTC looks into Reddit’s AI data-licensing practices ahead of IPO. Reddit disclosed that it received a letter from the Federal Trade Commission (FTC) regarding its data-licensing practices for training AI systems. The inquiry, revealed in Reddit's IPO prospectus update, focuses on the company's sale, licensing, or sharing of user-generated content with third parties. While Reddit primarily relies on online advertising, it's exploring other revenue streams, including data licensing. Despite potential regulatory scrutiny, Reddit sees data licensing as aligned with its values and user rights. The disclosure comes as Reddit gears up for its IPO, aiming to raise up to $6.5 billion amid a slow period for tech debuts.

🚗 Uber and Lyft are leaving Minneapolis over a pay dispute. Ride-hailing giants Lyft and Uber are pulling out of Minneapolis after the City Council demanded higher pay for drivers. Share prices for both companies dipped as a result. Lyft voiced support for fair driver wages but found the new ordinance unsustainable, prompting the shutdown of operations by May 1. The council's decision, overriding the mayor's veto, sparked debate over wage calculation methods. Uber suggested statewide legislation as a more effective solution, emphasizing collaboration among drivers, riders, and state leaders for a balanced approach.

REAL ESTATE

A new era for home buying: How a major settlement changes the game

The real estate game is about to change, and it's not just the curb appeal getting a makeover. The National Association of Realtors (NAR) has decided it's time for a serious renovation, agreeing to a whopping $418 million settlement that's set to revolutionize the way we buy and sell homes.

At its core, this settlement aims to dismantle the old school rules that have long dictated the costs of buying a home. By axing the mandatory commission rates and opening the door for more flexible buyer-broker agreements, the NAR is essentially rolling out the red carpet for more competitive pricing and innovative selling models.

The blueprint for change

For years, the traditional setup where sellers foot the bill for both their own and the buyer's broker has been a bone of contention, blamed for keeping housing prices needlessly high. The new NAR guidelines are a bold move towards breaking this cycle, promising to shake up the industry by slashing real estate commissions by as much as half in some cases. This could be a boon for alternative, more cost-effective selling strategies, including flat-fee listings and discount brokerages.

But as shares for real estate giants like Zillow and Compass begin to wobble in the wake of this news, there's a clear sign that not everyone's ready for change. These platforms, heavily reliant on traditional commission models, might need to rethink their strategies or risk being left behind.

On the flip side, homebuilders are rubbing their hands with glee. Lower selling costs could mean a surge in affordability, potentially unlocking the door to homeownership for scores of Americans. It's an exciting prospect, suggesting that for many, the dream of buying a home could become a little more attainable.

Redefining the landscape. As this settlement awaits judicial approval, the real estate market braces for a shift that could see a vibrant mix of pricing models emerge. The winners in this new era are likely to be the agents who offer top-tier service, while those unable to adapt may find themselves edged out.

WEEK AHEAD

What to expect

• The week features several interest rate announcements from major central banks like the US Federal Reserve, Bank of Japan, and Bank of England.

• U.S. stocks poised for a mixed open on Monday ahead of the Federal Reserve meeting.

• Notable earnings reports scheduled for the week include: Embraer S/A on Monday, Tencent Music Entertainment Group and XPeng on Tuesday, and Chewy, BioNTech, General Mills, Micron Technology, Ollie’s Bargain Outlet Holdings, and Signet Jewelers on Wednesday. Additionally, Accenture, Darden Restaurants, FactSet Research Systems, FedEx, Lululemon Athletica, and Nike are set to report on Thursday.

• Conference Board releases Leading Economic Index for February.

• National Association of Realtors reports existing-home sales for February.

What else is happening:

• British technologist Mike Lynch's trial over Silicon Valley's "largest fraud" begins in San Francisco on Monday.

• Wednesday is the International Day of Happiness.

SNIPPETS

Pulse Points

• LinkedIn, with over 1 billion users, is expanding into gaming to increase user engagement on its Microsoft-owned professional networking and recruitment platform.

• Leaked documents show SpaceX forbid employees from selling their stock for exhibiting ‘bad behavior’.

• Volkswagen revives a storied American brand to sell electric, off-road SUVs.

• Wegovy, a popular weight loss drug in the U.S., has gained approval for heart health benefits, though this may not immediately affect its insurance coverage.

• Medical practices are increasingly calling and emailing patients with multiple forms of appointment reminders—and warnings of cancellation penalties.

• Federal authorities are investigating Meta Platforms regarding its involvement in the illegal drug trade, based on documents and insider knowledge.

• Apple has acquired DarwinAI, a Canadian AI startup focusing on vision-based technology to enhance manufacturing efficiency, as reported by Bloomberg.

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