News Recap for Week of January 11, 2023

Google Ex-Employee Charged with Stealing AI Secrets, Climate Change Rules Impact SEC-Registered Companies, EU Regulations Affect Big Tech

1. SEC Proposes Climate Risk Disclosure Rules for Public Companies: The Securities Exchange Commission (SEC) proposed new rules this week that would require public companies to disclose emissions information and information on how climate change can impact a company's bottom line. The rules are aimed at large companies with at least $75 million in investments from public investors. CNBC reported that, "For some years, climate change was thought of as a moral and social issue, and it's really in the last decade that it's become clear how much economic impact and financial risk there is to climate change," said Cynthia Hanawalt, the director of climate finance and regulation at Columbia University's Sabin Center for Climate Change Law. This new ruling is being characterized as a "huge step forward in standardizing this information for investors and requiring a lot more transparency around the risks they're facing." As communicators, these rules will require organizations to address the ongoing impact of climate change and effectively communicate information about the potential risks to investors and stakeholders.
2. Ex-Google Employee Charged with Stealing AI Secrets for China: A former Google employee, Linwei Ding, who was part of the team that designs and maintains Google's AI supercomputer data system, has been charged with stealing AI secrets from the company and attempting to sell them to a startup in China. Prosecutors accused Ding of stealing information about the "architecture and functionality" of the system and of pilfering software used to "orchestrate" supercomputers at the cutting edge of machine learning and AI technology. The New York Times reported that Ding had uploaded 500 secret files from Google to the cloud using a scheme that enabled him to "evade immediate detection." This case highlights the need for companies to have protocols in place to prevent cybersecurity lapses and to communicate with employees about the potential pitfalls and security issues surrounding AI in the workplace.
3. New EU Rules Impact Tech Giants Like Google and Apple: New rules aimed at governing competition in the tech industry are set to impact user experiences with smartphones, browsers, and other tech within the EU. The changes will impact entities such as the Apple Store, Google Search, and Meta's Whatsapp platform. CNN reported that, in one seismic shift to comply with the law, Apple announced its plan to let EU users download iPhone apps via third-party app stores — easing its grip on iOS for the first time since the App Store's debut 15 years ago. In another significant change, Google announced that it will alter search results to drive more traffic to independent comparison shopping or travel booking sites, instead of directing users toward Google Flights or other tools it owns. These new regulations will require companies to respond to changes and effectively communicate about their impacts, and may also require a shift in SEO and information-pushing strategies.
4. Apps, Grandma Cooking, and a Rare Bird: Good News Worth Sharing: Finally, some good news worth sharing! A new smartphone app shows promise in diagnosing ear infections, a Staten Island restaurant features cooking from grandmothers from across the world, and Texas scientists captured a picture of a bird once thought lost.

A former Google employee, Linwei Ding, who was part of the team that designs and maintains Google's AI supercomputer data system, has been charged with stealing AI secrets from the company and attempting to sell them to a startup in China. Prosecutors accused Ding of stealing information about the "architecture and functionality" of the system and of pilfering software used to "orchestrate" supercomputers at the cutting edge of machine learning and AI technology.

From May 2022 to May 2023, Mr. Ding, also known as Leon, uploaded 500 files, many containing trade secrets, from his Google-issued laptop to the cloud by using a multistep scheme that allowed him to "evade immediate detection," according to the U.S. attorney's office for the Northern District of California.