Tech
Neuralink’s Value Jump Spurs Employee Interest in Cashing Out
Following a significant increase in Neuralink’s valuation after its first human trial, some employees at Elon Musk‘s brain implant company are preparing to sell their stock, according to insiders.
Stock compensation is a major incentive for employees at startups like Neuralink. Since these shares are not publicly traded, employees wanting to sell them without the company’s approval must use complex private market exchanges.
Sources familiar with the matter revealed that some Neuralink employees and investors are anticipating a tender offer from the company as early as next month. This would allow staff to sell their shares back to the company. Neuralink and Musk have not commented on the situation.
The valuation boost, evident in secondary market trades, indicates a rise to as much as $8 billion, more than double the previous year’s value. Despite thin trading volumes that don’t provide a definitive valuation, the trend points to a substantial increase.
Neuralink’s first human trial has been declared a success, resolving an initial issue with the implant’s threads retracting from the first patient’s brain. The company is now preparing for more trials in Britain and Canada, with plans to implant a second patient soon.
The exact details of the potential tender offer remain unknown. Last fall, Neuralink’s tender offer for employees was priced at around $19 per share, while some shares traded on the secondary market close to $35, according to Reuters and other sources. It’s common for startups to offer tender prices below secondary market values.
Musk has a history of creating scarcity for shares in his startups, including SpaceX and artificial intelligence developer xAI, making them exclusive to select investors like Peter Thiel’s Founders Fund. This scarcity has made the shares highly sought after, with investors typically receiving limited information on the startups’ performance. A spokeswoman for Founders Fund declined to comment.
Tech
Escalating Tensions Between Banks and Tech Companies Over Online Fraud Liability in the UK
Tensions are mounting between banks, payment firms, and social media platforms in the U.K. over the responsibility for compensating victims of online fraud. Starting from October 7, banks will be required to compensate individuals up to £85,000 if they fall victim to authorized push payment (APP) fraud—a type of scam where criminals manipulate people into transferring money to them.
Although the £85,000 limit is lower than the £415,000 initially proposed by the U.K.’s Payment Systems Regulator (PSR), it still represents a significant burden for banks and payment companies. Industry groups, such as the Payments Association, argued that the higher compensation figure would have been too costly for financial institutions to bear.
As mandatory fraud compensation takes effect, concerns are growing within the banking sector about whether they are being unfairly saddled with the financial cost of protecting consumers from fraud. The issue has sparked criticism from financial institutions like digital bank Revolut, which recently accused Meta, the parent company of Facebook, of not doing enough to combat fraud on its platforms.
Revolut’s head of financial crime, Woody Malouf, argued that social media companies should share the financial burden of reimbursing fraud victims. Malouf said that by avoiding financial responsibility, platforms like Meta lack the incentive to implement stronger anti-fraud measures.
This conflict over fraud liability highlights the growing pressure on both financial institutions and tech companies to find solutions to the rising tide of online scams, as consumers continue to fall victim to fraud through digital channels.
Tech
Judge Orders Google to Open Android App Store in Epic Games Case
A U.S. judge has issued a permanent injunction forcing Google to offer alternatives to its Google Play store on Android devices. This landmark ruling, part of Epic Games’ antitrust lawsuit against Google, means that the tech giant must allow other app stores to compete and access its Play Store catalog.
The decision comes as a major win for Epic Games, which initially sued Google in 2020, accusing the company of anti-competitive practices such as paying phone manufacturers to avoid developing rival app stores. Under the ruling, starting in November, Google will be restricted from:
- Paying companies to launch apps exclusively on Google Play.
- Preventing companies from creating competing app stores.
- Requiring app makers to use Google Play Billing or preventing them from promoting cheaper pricing options on their websites.
The ruling could reshape the app market by allowing developers to bypass Google’s fees, which typically range from 15% to 30% of sales. This could result in developers keeping a larger share of the revenue from the estimated $124 billion consumers spent on apps in 2023.
In addition to these restrictions, a three-person committee will be established to monitor Google’s compliance with the order. This ruling sets a new precedent in app market competition, paving the way for more choices for consumers and app developers alike.
Tech
Meta Forms Data-Sharing Alliance with UK Banks to Combat Fraud
Meta, the parent company of Facebook, announced a new collaboration with two major UK banks, NatWest and Metro Bank, to tackle the rising issue of online scams. This initiative, part of Meta’s Fraud Intelligence Reciprocal Exchange (FIPE), aims to enhance fraud detection by allowing UK banks to share vital data directly with Meta. The goal is to identify and dismantle accounts involved in fraudulent activities.
The system has already seen significant success. For example, Meta claims it shut down 20,000 scam accounts linked to a network selling fake concert tickets in both the UK and the U.S., thanks to data provided by British banks.
Meta’s head of counter-fraud, Nathaniel Gleicher, emphasized the importance of collaboration between financial institutions and social media platforms, noting that such partnerships enable faster detection and removal of scam accounts.
Meta’s existing policies already prohibit the promotion of financial fraud, including deceptive schemes such as loan scams and fake investment promises. However, this new collaboration represents a significant step in the ongoing fight against online financial crimes. Additional banks are expected to join the program soon, further expanding its reach.
-
Business5 days ago
EU Approves Major Tariffs on Chinese Electric Vehicle Imports to Protect Industry
-
Sports5 days ago
Pogba’s doping ban reduced to 18 months
-
News5 days ago
WHO Approves First Rapid Mpox Diagnostic Test Amid Rising Global Cases
-
News5 days ago
Floods and Landslides Devastate Central Bosnia, Leaving 14 Dead
-
Sports3 days ago
Coco Gauff Triumphs Over Muchova to Secure China Open Title
-
Entertainment5 days ago
Garth Brooks Faces Sexual Assault Lawsuit
-
Sports4 days ago
Liverpool Faces Goalkeeper Setback as Alisson Sidelined for Weeks
-
Sports3 days ago
Lewandowski’s First-Half Hat-Trick Lifts Barcelona to Victory at Alaves