An anonymous reader quotes a report from Ars Technica: Two researchers at the University of California, Davis -- Yanning Li and Alan Jenn -- have determined that nearly two-thirds of [California's] feeder lines don't have the capacity that will likely be needed for car charging. Updating to handle the rising demand might set its utilities back as much as 40 percent of the existing grid's capital cost. Li and Jenn aren't the first to look at how well existing grids can handle growing electric vehicle sales; other research has found various ways that different grids fall short. However, they have access to uniquely detailed data relevant to California's ability to distribute electricity (they do not concern themselves with generation). They have information on every substation, feeder line, and transformer that delivers electrons to customers of the state's three largest utilities, which collectively cover nearly 90 percent of the state's population. In total, they know the capacity that can be delivered through over 1,600 substations and 5,000 feeders.[...]

By 2025, only about 7 percent of the feeders will experience periods of overload. By 2030, that figure will grow to 27 percent, and by 2035 -- only about a decade away -- about half of the feeders will be overloaded. Problems grow a bit more slowly after that, with two-thirds of the feeders overloaded by 2045, a decade after all cars sold in California will be EVs. At that point, total electrical demand will be close to twice the existing capacity. The problems aren't evenly distributed, though. They appear first in high-population areas like the Bay Area. And throughout this period, most of the problems are in feeders that serve residential and mixed-use neighborhoods. The feeders that serve neighborhoods that are primarily business-focused don't see the same coordinated surge in demand that occurs as people get home from work and plug in; they're better able to serve the more erratic use of charging stations at office complexes and shopping centers. In terms of the grid, residential services will need to see their capacity expand by about 16 gigawatts by 2045. Public chargers will need nine gigawatts worth of added capacity by the same point. The one wild card is direct current fast charging. Eliminating fast chargers entirely would reduce the number of feeders that need upgrades by 12 percent. Converting all public stations to DC fast charging, in contrast, would boost that number by 15 percent. So the details of the upgrades that will be needed will be very sensitive to the impatience of EV drivers.

Paying for the necessary upgrades will be pricey, but there's a lot of uncertainty here. Li and Jenn came up with a range of anywhere between $6 billion and $20 billion. They put this in context in two ways. The total capital invested in the existing grid is estimated to be $51 billion, so the cost of updating it could be well over a third of its total value. At the same time, the costs will be spread out over decades and only total up to (at most) three times the grid's annual operation and maintenance costs. So in any one year, the costs shouldn't be crippling. All that might be expected to drive the cost of electricity up. But Li and Jenn suggest that the greater volume of electricity consumption will exert a downward pressure on prices (people will pay more overall but pay somewhat less per unit of electricity). Based on a few economic assumptions, the researchers conclude that this would roughly offset the costs of the necessary grid expansion, so the price per unit of electricity would be largely static. The findings have been published in the journal Proceedings of the National Academy of Sciences (PNAS).

According to the Wall Street Journal, a deal for IBM to acquire HashiCorp could materialize in the next few days. Shares of HashiCorp jumped almost 20% on the news.

UPDATE 4/24/24: IBM has confirmed the deal valued at $6.4 billion. "IBM will pay $35 per share for HashiCorp, a 42.6% premium to Monday's closing price," reports Reuters. "The acquisition will be funded by cash on hand and will add to adjusted core profit within the first full year of closing, expected by the end of 2024." HashiCorp's shares continued to surge Tuesday on the news. CNBC reports: Developers use HashiCorp's software to set up and manage infrastructure in public clouds that companies such as Amazon and Microsoft operate. Organizations also pay HashiCorp for managing security credentials. Founded in 2012, HashiCorp went public on Nasdaq in 2021. The company generated a net loss of nearly $191 million on $583 million in revenue in the fiscal year ending Jan. 31, according to its annual report. In December, Mitchell Hashimoto, co-founder of HashiCorp, whose family name is reflected in the company name, announced that he was leaving.

Revenue jumped almost 23% during that period, compared with 2% for IBM in 2023. IBM executives pointed to a difficult economic climate during a conference call with analysts in January. The hardware, software and consulting provider reports earnings on Wednesday. Cisco held $9 million in HashiCorp shares at the end of March, according to a regulatory filing. Cisco held early acquisition talks with HashiCorp, according to a 2019 report.

Glance, which operates a popular lockscreen platform targeting Android smartphones, is setting its sights on the U.S. market. From a report: The Indian startup recently commenced a pilot program in partnership with Motorola and Verizon in the U.S., with plans for a full launch in the country later this year, sources familiar with the matter told TechCrunch. The Bengaluru-headquartered startup, backed by investors, including Google and Jio Platforms, has already made significant inroads in India, Southeast Asia, and Japan, where it expanded last year. According to a person familiar with the matter, Glance's lockscreen platform today reaches more than 450 million smartphones and is active on about 300 million of them, delivering those customers a customized feed of news, local events, sports updates, media content, and interactive games directly to their lockscreens without requiring them to install additional apps. The recently launched Moto G Power smartphone in the U.S. shipped with Glance's platform, the report says.

Further reading: Motorola Spoiled a Good Budget Phone With Bloatware.

Edward Zitron, citing emails released as part of the Department of Justice's antitrust case against Google, writes about Prabhakar Raghavan: And Raghavan -- a manager, hired by Sundar Pichai, a former McKinsey man and a manager by trade -- is an example of everything wrong with the tech industry. Despite his history as a true computer scientist with actual academic credentials, Raghavan chose to bulldoze actual workers and replace them with toadies that would make Google more profitable and less useful to the world at large. Since Prabhakar took the reins in 2020, Google Search has dramatically declined, with the numerous "core" search updates allegedly made to improve the quality of results having an adverse effect, increasing the prevalence of spammy, search engine optimized content.

It's because the people running the tech industry are no longer those that built it. Larry Page and Sergey Brin left Google in December 2019 (the same year as the Code Yellow fiasco), and while they remain as controlling shareholders, they clearly don't give a shit about what "Google" means anymore. Prabhakar Raghavan is a manager, and his career, from what I can tell, is mostly made up of "did some stuff at IBM, failed to make Yahoo anything of note, and fucked up Google so badly that every news outlet has run a story about how bad it is." This is the result of taking technology out of the hands of real builders and handing it to managers at a time when "management" is synonymous with "staying as far away from actual work as possible." And when you're a do-nothing looking to profit as much as possible, you only care about growth. You're not a user, you're a parasite, and it's these parasites that have dominated and are draining the tech industry of its value.

Raghavan's story is unique, insofar as the damage he's managed to inflict (or, if we're being exceptionally charitable, failed to avoid in the case of Yahoo) on two industry-defining companies, and the fact that he did it without being a CEO or founder. Perhaps more remarkable, he's achieved this while maintaining a certain degree of anonymity. Everyone knows who Musk and Zuckerberg are, but Raghavan's known only in his corner of the Internet. Or at least he was. Now Raghavan has told those working on search that their "new operating reality" is one with less resources and less time to deliver things. Rot Master Raghavan is here to squeeze as much as he can from the corpse of a product he beat to death with his bare hands. Raghavan is a hall-of-fame rot economist, and one of the many managerial types that have caused immeasurable damage to the Internet in the name of growth and "shareholder value." And I believe these uber-managers - these ultra-pencil-pushers and growth-hounds - are the forces destroying tech's ability to innovate.

An anonymous reader shares a report: Diamonds may be forever but they are also seriously on sale. Natural rough diamond prices have collapsed 26 per cent in the past couple of years. Tepid US and Chinese demand for diamond jewellery hasn't helped. But most ring fingers point at the increasing popularity of cheaper laboratory grown diamonds (LGD). This fracturing of the diamond market is set to last. After a brief pandemic-era boom in diamond jewellery, miners are battling to whittle down oversupply of gems. Anglo-American's De Beers, along with Russia's Alrosa, control two-thirds of the rough diamond supply. DeBeers this week said its rough sales dropped 23 per cent in the first quarter.

It is not enough. While rough stone inventory has stabilised of late, polished diamond stocks remain high. At more than $20bn at the end of 2023, these were near five-year highs, up a third since the end of 2022, according to Bank of America. Worse, as LGDs have taken market share, their prices have declined too, to about 15 per cent or less of their natural counterparts. Diamond miners spent years maintaining that romantic buyers would prefer the allure of rare, natural stones. It increasingly appears they were wrong.

Synthetic diamonds are nothing new, having appeared about 70 years ago mostly for industrial purposes. But in the past decade LGDs have taken off. In 2015, LGD supply barely featured as a rival to natural stones. By last year it was more than 10 per cent of the global diamond jewellery market, according to specialist Paul Zimnisky. This has created a competitive frenzy among producers. LGDs' lower costs have enabled them to slash prices. In October, WD Lab Grown Diamonds, America's second-largest maker of synthetics, filed for bankruptcy. It has since had to shift its business away from retail towards industrial customers.

Oracle Chairman Larry Ellison said Tuesday that the company is moving its world headquarters to Nashville, Tennessee, to be closer to a major health-care epicenter. CNBC reports: In a wide-ranging conversation with Bill Frist, a former U.S. Senate Majority Leader, Ellison said Oracle is moving a "huge campus" to Nashville, "which will ultimately be our world headquarters." He said Nashville is an established health center and a "fabulous place to live," one that Oracle employees are excited about. "It's the center of the industry we're most concerned about, which is the health-care industry," Ellison said. The announcement was seemingly spur-of-the-moment. "I shouldn't have said that," Ellison told Frist, a longtime health-care industry veteran who represented Tennessee in the Senate. The pair spoke during a fireside chat at the Oracle Health Summit in Nashville.

Nashville has been a major player in the health-care scene for decades, and the city is now home to a vibrant network of health systems, startups and investment firms. The city's reputation as a health-care hub was catalyzed when HCA Healthcare, one of the first for-profit hospital companies in the U.S., was founded there in 1968. HCA helped attract troves of health-care professionals to Nashville, and other organizations quickly followed suit. Oracle has been developing its new $1.2 billion campus in the city for about three years, according to The Tennessean. "Our people love it here, and we think it's the center of our future," Ellison said.

Apple's iPhone sales dropped sharply in China in the first quarter of this year as the company saw strong competition from domestic brand Huawei, according to a new report from market research firm Counterpoint Research. CNBC: Apple saw sales of its iPhones fall 19.1% in the first three months of the year, Counterpoint's data showed, as Chinese telecommunications and consumer electronics giant Huawei saw a resurgence in its smartphone business. The Shenzhen, China-based firm saw sales of its smartphones surge a whopping 69.7% in the first quarter, Counterpoint said.

An anonymous reader shares a report: For years, people who have found Google search frustrating have been adding "Reddit" to the end of their search queries. This practice is so common that Google even acknowledged the phenomenon in a post announcing that it will be scraping Reddit posts to train its AI. And so, naturally, there are now services that will poison Reddit threads with AI-generated posts designed to promote products.

A service called ReplyGuy advertises itself as "the AI that plugs your product on Reddit" and which automatically "mentions your product in conversations naturally." Examples on the site show two different Redditors being controlled by AI posting plugs for a text-to-voice product called "AnySpeech" and a bot writing a long comment about a debt consolidation program called Debt Freedom Now. A video demo shows a dashboard where a user adds the name of their company and URL they want to direct users to. It then auto-suggests keywords that "help the bot know what types of subreddits and tweets to look for and when to respond."

Moments later, the dashboard shows how Reply Guy is "already in the responses" of the comments section of different Reddit posts. "Many of our responses will get lots of upvotes and will be well-liked." The creator of the company, Alexander Belogubov, has also posted screenshots of other bot-controlled accounts responding all over Reddit. Begolubov has another startup called "Stealth Marketing" that also seeks to manipulate the platform by promising to "turn Reddit into a steady stream of customers for your startup."

The U.S. publishing industry is driven by celebrity authors and repeat bestsellers, according to testimony from a blocked merger between Penguin Random House and Simon & Schuster. Only 50 authors sell over 500,000 copies annually, with 96% of books selling under 1,000 copies. Publishing houses spend most of their advance money on celebrity books, which along with backlist titles like The Bible, account for the bulk of their revenue and fund less commercially successful books.

Chinese tech giant Kuaishou is laying off employees in their mid-30s as part of a company-wide restructuring plan dubbed "Limestone," FT reported Tuesday, citing people with direct knowledge of the matter. The move highlights the pervasive ageism in China's tech sector, where younger workers are favored for their perceived willingness to work long hours and keep up with the latest technological developments, the report adds.

While China's labor law does not explicitly prohibit age discrimination, some have interpreted it as such. However, tech executives have openly expressed their preference for younger employees, with companies like ByteDance and Pinduoduo boasting some of the youngest workforces in the industry. The economic slowdown and regulatory crackdowns have exacerbated the problem, with tens of thousands of jobs cut across the sector in recent months. Those over 35 face significant challenges in finding new employment, as even the civil service and service sector prioritize younger applicants. The situation has left many older tech workers anxious about their future job prospects, the report adds.

Google has fired another 20 workers for participating in protests against its $1.2 billion cloud computing contract with the Israeli government, according to an activist group representing the workers. From a report: In total, the company has now fired around 50 employees over sit-in protests held in Google offices last week that were part of yearslong discontent among a group of Google and Amazon workers over claims that Israel is using the companies' services to harm Palestinians. Google has denied those claims, saying Project Nimbus, the cloud-computing contract, doesn't involve "highly sensitive, classified, or military workloads relevant to weapons or intelligence services," and that Israeli government ministries that use its commercial cloud must agree to its terms of services and other policies.

No Tech For Apartheid, the group representing the workers, claimed in a statement that Google is attempting to "quash dissent, silence its workers, and reassert its power over them." "That's because Google values its profit, and its $1.2 billion contract with the Israeli government and military, more than people. And it certainly values it over its own workers," it said. The group said it will continue organizing until Google cancels Project Nimbus. Further reading: Google To Employees: 'We Are a Workplace'.

According to French business magazine Challenges, Apple has acquired Datakalab -- a Paris-based startup specializing in artificial intelligence compression and computer vision technology. 9to5Mac reports: Datakalab described itself as "experts in low power, runtime efficient, and deep learning algorithms" that work on device. On its LinkedIn page, Datakalab highlights "industry leading compression and adaptation to deploy embedded computer vision that is fast, cost-effective and precise." Prior to the Apple acquisition had between 10 and 20 employees.

From Datakalab's now-defunct website: "Datakalab is a French technology company that develops computer image analysis algorithms to measure flows in public space. The images are instantly transformed into anonymized statistical data processed locally in 100ms. Datakalab does not store any images or personal data and only keeps statistical data. Datakalab products are built according to the principle of 'Privacy by Design.'"

While neither Apple nor DatakaLab have acknowledged the acquisition, Challenges says that the deal was reported to the European Commission this month. The report says that Datakalab's two founders did not join Apple, but multiple other employees did make the jump. Datakalab also held multiple patents related to AI compression and vision technology. The acquisition makes perfect sense given Apple's rumored ambitions to run its upcoming AI-related features in iOS 18 "entirely on device."

Jess Weatherbed reports via The Verge: Swedish gaming conglomerate Embracer Group announced plans on Monday to split itself into three distinct games and entertainment companies: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. These will be separate, publicly listed companies, according to Embracer, which says the move will allow "each entity to better focus on their respective core strategies and offer more differentiated and distinct equity stories for existing and new shareholders." [...]

The three new companies will be broken down as follows:

- Middle-earth Enterprises & Friends: This company, which will be renamed from Embracer Group, is described as a "creative powerhouse in AAA game development and publishing" that will retain ownership of the Dead Island, Killing Floor, Kingdom Come Deliverance, Tomb Raider, and The Lord of the Rings IPs.
- Asmodee Group: a new arm dedicated to publishing and distributing tabletop games. The existing catalog includes established titles like Ticket to Ride, 7 Wonders, Azul, CATAN, Dobble, and Exploding Kittens. Asmodee is also developing licensed tabletop games based on The Lord of the Rings, Marvel, Game of Thrones, and Star Wars franchises. Embracer anticipates the spinoff and share listings will take place "within 12 months."
- Coffee Stain & Friends: described as a "diverse gaming entity" that will focus on indie, mid-market, and free-to-play games. Properties sitting under this new company include Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, and Valheim. The share listings are projected to become available in 2025.

An anonymous reader shares a report: To accommodate tech companies' pivots to artificial intelligence, tech companies are increasingly investing in ways to power AI's immense electricity needs. Most recently, OpenAI CEO Sam Altman invested in Exowatt, a company using solar power to feed data centers, according to the Wall Street Journal. That's on the heals of OpenAI partner, Microsoft, working on getting approval for nuclear energy to help power its AI operations. Last year Amazon, which is a major investor in AI company Anthropic, said it invested in more than 100 renewable energy projects, making it the "world's largest corporate purchaser of renewable energy for the fourth year in a row."

50 years ago this week, PC software pioneer Gary Kildall "demonstrated CP/M, the first commercially successful personal computer operating system in Pacific Grove, California," according to a blog post from Silicon Valley's Computer History Museum. It tells the story of "how his company, Digital Research Inc., established CP/M as an industry standard and its subsequent loss to a version from Microsoft that copied the look and feel of the DRI software."

Kildall was a CS instructor and later associate professor at the Naval Postgraduate School (NPS) in Monterey, California... He became fascinated with Intel Corporation's first microprocessor chip and simulated its operation on the school's IBM mainframe computer. This work earned him a consulting relationship with the company to develop PL/M, a high-level programming language that played a significant role in establishing Intel as the dominant supplier of chips for personal computers.

To design software tools for Intel's second-generation processor, he needed to connect to a new 8" floppy disk-drive storage unit from Memorex. He wrote code for the necessary interface software that he called CP/M (Control Program for Microcomputers) in a few weeks, but his efforts to build the electronic hardware required to transfer the data failed. The project languished for a year. Frustrated, he called electronic engineer John Torode, a college friend then teaching at UC Berkeley, who crafted a "beautiful rat's nest of wirewraps, boards and cables" for the task.

Late one afternoon in the fall of 1974, together with John Torode, in the backyard workshop of his home at 781 Bayview Avenue, Pacific Grove, Gary "loaded my CP/M program from paper tape to the diskette and 'booted' CP/M from the diskette, and up came the prompt: *

[...] By successfully booting a computer from a floppy disk drive, they had given birth to an operating system that, together with the microprocessor and the disk drive, would provide one of the key building blocks of the personal computer revolution... As Intel expressed no interest in CP/M, Gary was free to exploit the program on his own and sold the first license in 1975.
What happened next? Here's some highlights from the blog post:

• "Reluctant to adapt the code for another controller, Gary worked with Glen Ewing to split out the hardware dependent-portions so they could be incorporated into a separate piece of code called the BIOS (Basic Input Output System)... The BIOS code allowed all Intel and compatible microprocessor-based computers from other manufacturers to run CP/M on any new hardware. This capability stimulated the rise of an independent software industry..."

• "CP/M became accepted as a standard and was offered by most early personal computer vendors, including pioneers Altair, Amstrad, Kaypro, and Osborne..."

• "[Gary's company] introduced operating systems with windowing capability and menu-driven user interfaces years before Apple and Microsoft... However, by the mid-1980s, in the struggle with the juggernaut created by the combined efforts of IBM and Microsoft, DRI had lost the basis of its operating systems business."

• "Gary sold the company to Novell Inc. of Provo, Utah, in 1991. Ultimately, Novell closed the California operation and, in 1996, disposed of the assets to Caldera, Inc., which used DRI intellectual property assets to prevail in a lawsuit against Microsoft."

Bloomberg looks at America's biggest operator of private electrical vehicle charging infrastructure: Amazon. "In a little more than two years, Amazon has installed more than 17,000 chargers at about 120 warehouses around the U.S." — and had Rivian build 13,500 custom electric delivery vans. Amazon has a long way to go. The Seattle-based company says its operations emitted about 71 million metric tons of carbon dioxide equivalent in 2022, up by almost 40% since Jeff Bezos's 2019 vow that his company would eventually stop contributing to the emissions warming the planet. Many of Amazon's emissions come from activities — air freight, ocean shipping, construction and electronics manufacturing, to name a few — that lack a clear, carbon-free alternative, today or any time soon. The company has not made much progress on decarbonization of long-haul trucking, whose emissions tend to be concentrated in industrial and outlying areas rather than the big cities that served as the backdrop for Amazon's electric delivery vehicle rollout...

Another lesson Amazon learned is one the company isn't keen to talk about: Going green can be expensive, at least initially. Based on the type of chargers Amazon deploys — almost entirely midtier chargers called Level 2 in the industry — the hardware likely cost between $50 million and $90 million, according to Bloomberg estimates based on cost estimates supplied by the National Renewable Energy Laboratory. Factoring in costs beyond the plugs and related hardware — like digging through a parking lot to lay wires or set up electrical panels and cabinets — could double that sum. Amazon declined to comment on how much it spent on its EV charging push.
In addition to the expense of the chargers, electric vehicle-fleet operators are typically on the hook for utility upgrades. When companies request the sort of increases to electrical capacity that Amazon has — the Maple Valley warehouse has three megawatts of power for its chargers — they tend to pay for them, making the utility whole for work done on behalf of a single customer. Amazon says it pays upgrade costs as determined by utilities, but that in some locations the upgrades fit within the standard service power companies will handle out of their own pocket.
The article also includes this quote from Kellen Schefter, transportation director at the Edison Electric Institute trade group (which worked with Amazon on its electricity needs). "Amazon's scale matters. If Amazon can show that it meets their climate goals while also meeting their package-delivery goals, we can show this all actually works."

Remember when Apple filed a lawsuit against chip startup Rivos (saying that in one year Rivos hired more than 40 former Apple employees to work on competing system-on-a-chip technology)? Apple settled that suit in February.

And now Tuesday Rivos announced that it raised $250 million, according to Reuters, "in a funding round that will enable it to manufacture its first server chip geared for artificial intelligence," combining a CPU with an AI-accelerating component optimized for LLMs and data analytics. Nvidia gobbled up more than 80% market share of AI chips in 2023. But a host of startups and chip giants have started to launch competing products, such as Intel's Gaudi 3 and Meta's inference chip — both unveiled last week. Rivos is tight-lipped about the specifics of the product, but has disclosed that its plans include designing chips based on the RISC-V architecture, which is an open source alternative to the architectures made by Arm, Intel, and Advanced Micro Devices.. [U]sing the open source alternative means Rivos does not have to pay a license fee to Arm. "RISC-V doesn't have a (large) software ecosystem, so I decided to form a company and then build software-defined hardware — just like what CUDA did with Nvidia," said Lip-Bu Tan, founding managing partner at Walden Catalyst, one of Rivos' investors.
Meanwhile, there's a rumor that Allen Wu, former chief executive of Arm China, has founded a new company that will develop chips based on RISC-V. Tom's Hardware writes: Under the leadership of the controversial Allen Wu, Zhongzhi Chip is reportedly attracting a notable influx of talent, including numerous former employees of Arm, indicating the new company's serious ambitions in the chip sector... [T]he company's operational focus remains partially unclear, with speculation around whether it will primarily engage in its own R&D initiatives or represent Tenstorrent in China as its agent... which develops HPC CPUs and AI processors based on the RISC-V ISA... Based on the source report, Zhongzhi Chip is leveraging its connections and forming alliances with several other leading global RISC-V chip developers.

The co-founder of Silicon Valley-based software testing startup HeadSpin was sentenced Friday to 18 months in prison and a $1 million fine, reports SFGate — for defrauding investors. Lachwani pleaded guilty to two counts of wire fraud and a count of securities fraud in April 2023, after federal prosecutors accused him of, for years, lying to investors about HeadSpin's finances to raise more money. HeadSpin, founded in 2015, grew to a $1.1 billion valuation by 2020 with over $115 million in funding from investors including Google Ventures and Iconiq Capital... He had personally altered invoices, lied to the company accountant and sent slide decks with fraudulent information to investors, [according to the government's 2021 criminal complaint]...

Breyer, per the New York Times, rejected Lachwani's lawyer's argument that because HeadSpin investors didn't end up losing money, he should receive a light sentence. The judge, who often oversees tech industry cases, reportedly said: "If you win, there are no serious consequences — that simply can't be the law." Still, the sentencing was far lighter than it could have been. The government's prosecuting attorneys had asked for a five-year prison term.
The New York Times reported in December that HeadSpin's financial statements had "often arrived months late, if at all, investors said in legal declarations," while the company's financial department "consisted of one external accountant who worked mostly from home using QuickBooks." And the comnpany also had no human resources department or organizational chart... After Manish Lachwani founded the Silicon Valley software start-up HeadSpin in 2015, he inflated the company's revenue numbers by nearly fourfold and falsely claimed that firms including Apple and American Express were customers. He showed a profit where there were losses. He used HeadSpin's cash to make risky trades on tech stocks. And he created fake invoices to cover it all up.

What was especially breathtaking was how easily Mr. Lachwani, now 48, pulled all that off... [HeadSpin] had no chief financial officer, had no human resources department and was never audited. Mr. Lachwani used that lack of oversight to paint a rosier picture of HeadSpin's growth. Even though its main investors knew the start-up's financials were not accurate, according to Mr. Lachwani's lawyers, they chose to invest anyway, eventually propelling HeadSpin to a $1.1 billion valuation in 2020. When the investors pushed Mr. Lachwani to add a chief financial officer and share more details about the company's finances, he simply brushed them off. These details emerged this month in filings in U.S. District Court for the Northern District of California after Mr. Lachwani had pleaded guilty to three counts of fraud in April...

The absence of controls at HeadSpin is part of an increasingly noticeable pattern at Silicon Valley start-ups that have run into trouble. Over the past decade, investors in tech start-ups were so eager to back hot companies that many often overlooked reckless behavior and gave up key controls like board seats, all in the service of fast growth and disruption. Then when founders took the ethos of "fake it till you make it" too far, their investors were often unaware or helpless...

Now, amid a start-up shakeout, more frauds have started coming to light. The founder of the college aid company Frank has been charged, the internet connectivity start-up Cloudbrink has been sued, and the social media app IRL has been investigated and sued. Last month, Mike Rothenberg, a Silicon Valley investor, was found guilty on 21 counts of fraud and money laundering. On Monday, Trevor Milton, founder of the electric vehicle company Nikola, was sentenced to four years in prison for lying about Nikola's technological capabilities.
The Times points out that similarly, FTX only had a three-person board "with barely any influence over the company, tracked its finances on QuickBooks and used a small, little-known accounting firm." And that Theranos had no financial audits for six years.

Ashley Capoot reports via CNBC: Anne Wojcicki, the CEO of 23andMe, is considering a proposal to take the genetic testing company private after its stock price tumbled more than 95% from its 2021 highs. A late Wednesday filing with the Securities and Exchange Commission said Wojcicki is working with advisors and plans to speak with possible financing sources and partners. She "wishes to maintain control" of the company and will "not be willing to support any alternative transaction," the filing said. [...] In November, 23andMe received a deficiency letter from the Nasdaq Listing Qualifications Department, which said the company had 180 days to bring its share price back above $1. The company's board of directors formed a "Special Committee" in late March to help explore options that could juice the stock.

A press release on Thursday said the committee was made aware of Wojcicki's interest in acquiring all of 23andMe's outstanding shares. Wojcicki owns shares that make up more than 20% of those outstanding, which equates to about 49% of voting power, the release said. "The Special Committee will carefully review Ms. Wojcicki's proposal when and if it is made available and evaluate it in light of other available strategic alternatives, including continuing to operate as a publicly traded company," the committee said in the release. "The Special Committee is committed to acting in the best interests of 23andMe and its shareholders." The committee has engaged Wells Fargo as its financial advisor, and it said there is "no assurance" that Wojcicki's offer would result in the proposed outcome.

An anonymous reader shares a report: TCS, Infosys, and Wipro, India's top three IT outsourcing firms, have collectively seen their workforce shrink for the first time in at least 20 years. The trio reported a combined reduction of more than 63,750 employees in the financial year ending March 31, 2024.