Week in Review: You break it, you buy it

Hey everyone. Thank you for welcoming me into you inbox yet again.

Last week, I talked about Zuckerberg’s quest to tell us that Facebook has governing principles when he’s really just building the stairs one step at a time.

If you’re reading this on the TechCrunch site, you can get this in your inbox here, and follow my tweets here.


The big story

Plenty of ink has been spilled on WeWork and SoftBank and WeWork’s Adam Neumann, and yet it still feels like not nearly enough people are talking about it.

The startup’s post-S1 saga has just been just so messy that it’s understandable one could only grab a sneaking glance of headlines before having to look way.

One reason everyone is talking about it because Neumann’s maneuverings have created an anthology of sketchy founder dealings that’s nearly cartoon villain worthy. He’s got the eccentricities of Jack Dorsey, the frattiness of Evan Spiegel and the “change the world” delusions of Elizabeth Holmes. Critiques of WeWork weren’t all that sparse preceding its S-1, and yet many of venture capital’s talking heads had some kind of founder-friendly admiration for someone that seemed to had bent the world’s heftiest venture capital fund to his will.

It’s far beyond the pleasantries now, what happens to WeWork could deeply shape how late-stage venture capital operates. SoftBank was raising the second vision fund just as WeWork’s shit hit the fan and now it’s the fund’s deepest embarrassment and a financial commitment they’ve poured $18.5 billion into. If WeWork craters, that second vision could fall far short of its aspirations. Plenty of Silicon Valley’s investors would be happy to see control shift to more even-handed institutional forces who did not have capital commands that could set terms with a glance. Nevertheless, there are an awful lot of unicorns that have depended on SoftBank’s growth capital up to this point who would be in danger of being left high and dry.

At this point, SoftBank’s sunk costs have led the desperate fund to go all-in on a sans-Neumann WeWork. They will have to shape the business on their own. They enabled Neumann and now they are left with the task of reverse engineering a disaster into a great turnaround story.

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On to the rest of the week’s news.

Facebook CEO Mark Zuckerberg Testifies Before The House Financial Services Committee

(Photo by Chip Somodevilla/Getty Images)

Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context:

  • Extra! Extra!
    Facebook is getting into the news game once again, paying publishers and building an Apple News-like product called Facebook News that is determined to give America access to trusted news. Facebook is doing great fresh out of the gate by giving Breitbart the distinction as a trusted news source. Kudos, Mark. What could go wrong?
  • Netflix keeps racking up the bills
    Hit TV shows don’t feel like they should be as expensive as building a quantum computer and yet Netflix’s hefty original content spending is still chugging along. The streaming company announced this week they’re raising $2 billion in debt to fund its next efforts, which may or may not include another 14 seasons of Stranger Things.
  • Antitrust attorneys general
    This week was another rough one for Facebook, a New York antitrust investigation picked up the support of a whole lot of other states as the probe seeks out anticompetitive practices. There are now 47 attorneys general taking part.

facebook newspaper dollars

GAFA Gaffes

How did the top tech companies screw up this week? This clearly needs its own section, in order of badness:

  1. Facebook is still publisher enemy #1:
    [Why the Facebook News Tab shouldn’t be trusted]
  2. Google’s emoji puritanism:
    [Google’s Play Store is giving an age rating finger to Fleksy, a Gboard rival]

Disrupt Berlin

DISRUPT SF 530X350 V2 berlin

It’s hard to believe it’s already that time of the year again, but we just announced the agenda for Disrupt Berlin and we’ve got some all-stars making their way to the stage. I’ll be there this year, get some tickets and come say hey!

Sign up for more newsletters in your inbox (including this one) here.


Source: Tech Crunch

Zamna raises $5M to automate airport security checks between agencies using blockchain

Zamna — which uses a blockchain to securely share and verify data between airlines and travel authorities to check passenger identities — has raised a $5m seed funding round led by VC firms LocalGlobe and Oxford Capital, alongside Seedcamp, the London Co-Investment Fund (LCIF), Telefonica, and a number of angel investors.

Participation has also come from existing investor IAG (International Airlines Group), which is now its first commercial client. The company is also changed its name from VChain Technology to Zamna.

When VChain-now-Zamna first appeared, I must admit I was confused. Using blockchain to verify passenger data seemed like a hammer to crack a nut. But it turns out to have some surprisingly useful applications.

The idea is to use it to verify and connect the passenger data sets which are currently silo-ed between airlines, governments and security agencies. By doing this, says Zamna, you can reduce the need for manual or other checks by up to 90 percent. If that’s the case, then it’s quite a leap in efficiency.

In theory, as more passenger identities are verified digitally over time and shared securely between parties, using a blockchain in the middle to maintain data security and passenger privacy, the airport security process could become virtually seamless and allow passengers to sail through airports without needing physical documentation or repeated ID checks. Sounds good to me.

Zamna says its proprietary Advance Passenger Information (API) validation platform for biographic and biometric data, is already being deployed by some airlines and immigration authorities. It recently started working with Emirates Airline and the UAE’s General Directorate of Residency and Foreigners (GDRFA) to deliver check-in and transit checks.

Here’s how it works: Zamna’s platform is built on algorithms that check the accuracy of Advanced Passenger Information or biometric data, without having to share any of that data with third parties, because it attaches an anonymous token to the already verified data. Airlines, airports and governments can then access that secure, immutable and distributed network of validated tokens without having actually needing to ‘see’ the data an agency, or competing airline, holds. Zamna’s technology can then be used by any of these parties to validate passengers’ biographic and biometric data, using cryptography to check you are who you say you are.

So, what was wrong with the previous security measures in airports for airlines and border control that Zamna might be fixing?

Speaking to TechCrunch, Irra Ariella Khi, co-founder and CEO of Zamna, says: “There is a preconception that when you arrive at the airport somehow – as if by magic – the airline knows who you are, the security agencies know who you are, and the governments of departure and destination both know that you are flying between their countries and have established that it is both legitimate and secure for you to do so. You may even assume that the respective security authorities have exchanged some intelligence about you as a passenger, to establish that both you and your fellow passengers are safe to board the same plane.”

“However,” she says, “the reality is far from this. There is no easy and secure way for airlines and government agencies to share or cross-reference your data – which remains siloed (for valid data protection reasons). They must, therefore, repeat manual one-off data checks each time you travel. Even if you have provided your identity data and checked in advance, and if you travel from the same airport on the same airline many times over, you will find that you are still subject to the same one-off passenger processing (which you have probably already experienced many times before). Importantly, there is an ‘identity verification event’, whereby the airline must check both the document of identity which you carry, as well as establish that it belongs to your physical identity.”

There are three main trends in this space. Governments are demanding more accurate passenger data from airlines (for both departure and destination) – and increasing the regulatory fines imposed for incorrect data provided to them by the airlines. Secondly, Airlines also have to manage the repatriation of passengers and luggage if they are refused entry by a government due to incorrect data, which is costly. And thirdly, ETA (electronic transit authorizations, such as eVisas) are on the rise, and governments and airlines will need to satisfy themselves that a passenger’s data matches exactly that of their relevant ETA in order to establish that they have correct status to travel. This is the case with ESTAs for all US-bound travelers. Many other countries have similar requirements. Critically for UK travelers – this will also be the case for all passengers traveling into Europe under the incoming ETIAS regulations.

The upshot is that airlines are imposing increased document and identity checks at the airports – regardless of whether the passenger has been a regular flier, and irrespective of whether they have checked-in in advance.

Zamna’s data verification platform pulls together multiple stakeholders (airlines, governments, security agencies) with a way to validate and revalidate passenger identity and data (both biographic and biometric), and to securely establish data ownership – before passengers arrive at the airport.

It doesn’t require any new infrastructure at the airport, and none of these entities have to share data, because the ‘sharing without sharing’ is performed by Zamna’s blockchain platform in the middle of all the data sources.

Remus Brett, Partner at LocalGlobe, says: “With passenger numbers expected to double in the next 20 years, new technology-driven solutions are the only way airlines, airports and governments will be able to cope. We’re delighted to be working with the Zamna team and believe they can play a key role in addressing these challenges.” Dupsy Abiola, Global Head of Innovation at International Airlines Group, adds: “Zamna is working with IAG on a digital transformation project involving British Airways and the other IAG carriers. It’s very exciting.”

Zamna is a strategic partner to the International Air Transport Association (IATA) and an active member of IATA’s “One ID” working group.


Source: Tech Crunch

Original Content podcast: If you haven’t watched ‘Succession’ yet, what are you even doing?

You’ve probably already heard that HBO’s “Succession” (which recently completed its second season) is amazing. And as three East Coast tech reporters, we were probably the easiest targets for the show’s many charms.

Still, we felt like we had to talk about it. In fact, our “Succession” review on this episode of the Original Content podcast is perhaps our most epic discussion so far. And we probably would have gone for even longer, if we thought anyone would still be listening.

The series revolves around the Roy family, whose patriarch Logan Roy (played by Brian Cox) founded and still leads the Waystar Royco media empire. Throughout the course of the two seasons, his four children — heir apparent Kendall (Jeremy Strong), political fixer Shiv (Sarah Snook), snarky smart aleck Roman (Kieran Culkin) and libertarian weirdo Connor (Alan Ruck) — all take turns vying for their father’s attention and scheming against him.

All three of us loved “Succession,” but even without a long argument about the show’s merits, there was still plenty for us to debate: How a story with such morally bankrupt characters can still be so compelling, to what extend those characters are motivated by love versus hate versus greed (and whether they can even tell the difference) and who, in the end, deserves to sit on the corporate throne.

We also discuss next week’s launch of Disney+ and Apple TV+, and which shows we’re most excited about finally watching.

You can listen in the player below, subscribe using Apple Podcasts or find us in your podcast player of choice. If you like the show, please let us know by leaving a review on Apple. You can also send us feedback directly. (Or suggest shows and movies for us to review!)

And if you want to skip ahead, here’s how the episode breaks down:
0:00 Intro
0:41 Apple/Disney discussion
10:16 “Succession” spoiler-free review
25:50 “Succession” spoiler discussion


Source: Tech Crunch

The European SpaceTech industry is firing up its booster rockets

A new space race is forming globally, energized by venture capital and the hype around companies like Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin. The privately-funded space industry is still in its infancy, but there has been an explosion of startups and investors in the sector, and the fever has, in the last few years, spread to Europe. The development of SpaceTech startups will be crucial to the advancement of services we have come to rely on in our daily lives, be it navigation, delivery services or more.

For the past ten years, the SpaceTech sector has seen over $9 billion invested in it, roughly 60% of the space industry’s investments. This is in part because the ‘delivery’ mechanisms (basically, rockets) are now delivering enough capacity to meet demand. So what you put up in the sky and what you ‘get out of the sky’ is now the new focus of the industry. And in Europe, the European Space Agency has been increasingly effective at providing significant amounts of grant funding to innovative startups, even as venture capital ramps up its own interest.

 

STRUCTURE OF THE INDUSTRY
The European SpaceTech industry has structured itself across two main sectors. The first is the components manufacturers (thrusters, antennas, sensors, etc). The second is the huge and booming area of the data analytics market which is the underlying value of satellites.


Source: Tech Crunch

This Week in Apps: TikTok security check, app store cleanups, GameClub takes on Apple Arcade

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support, and the money that flows through it all.

The app industry in 2018 saw 194 billion downloads and more than $100 billion in purchases. This past quarter, consumer spending exceeded $23 billion and installs topped 31 billion. And there’s no sign of the app economy slowing down.

But with app marketplaces growing this large and powerful, they’re also now coming under more scrutiny from government officials as this intersection between apps and politics can no longer be overlooked.

This week, U.S. Senators asked for a TikTok security check, Google hosted its Android Developer Summit, a whole bunch of malicious apps got booted off Google Play (and a few on the App Store, too.) Plus, a great alternative to Apple Arcade launched; it’s called GameClub and delivers some of the best App Store games for $5 per month.

Headlines

TikTok comes under more political pressure

The world’s most downloaded app, TikTok, continues to draw attention not for its fun skits and lip-synced songs, but for censorship issues and potential security risks. This week, Senate Democratic Leader Chuck Schumer (D-NY) and Senator Tom Cotton (R-AR) sent a letter (PDF) to Acting Director of National Intelligence Joseph Maguire, formally requesting that the Intelligence Community conduct an assessment of the national security risks posed by TikTok and other China-owned content platforms in the U.S.

GettyImages 1073256498 1

Their concerns revolved around the storage of U.S. TikTok user data (TikTok parent company ByteDance claims it’s in the U.S.), its data collection capabilities, censorship concerns, and the potential for the app to be a counterintelligence threat. As a Chinese-owned company, TikTok still has to adhere to Chinese law. That’s a potential problem. 

By the way, a press release circulated about the letter, which said the senators claimed TikTok was a “national security threat.” They actually did not write those words in the letter — and it’s a step beyond what they were claiming. The senators wanted a risk assessment performed.

The Office of the Director of National Intelligence declined to comment. TikTok said it was “carefully reviewing” the letter. Good thing they just hired those lawyers.

Apple CEO Tim Cook is now the top advisor to a business school called China’s Harvard

The issues around the App Store’s intersection with U.S. politics aren’t limited to TikTok.

Apple, already under scrutiny for removing a crowdsourced mapping app that showed police presence in Hong Kong, last week attracted a letter from a bipartisan group of U.S. lawmakers who urged to have the app reinstated. 

Now (with a lack of concern over the optics apparently), Apple CEO Tim Cook has been appointed as chairman of Tsinghua University’s business school advisory board. The university is known as “China’s Harvard,” and is one of the most country’s most elite institutions; Chinese President Xi Jinping is a noted alumnus. The university has a history of relationships with Western leaders — last year, Mark Zuckerberg, Elon Musk, and Satya Nadella were listed as board members, and its previous chairman was American VC Jim Breyer.

But given the issues around Apple’s capitulation to China’s demands to censor its App Store in the region — not to mention the U.S.-China trade war, or how Apple had told Apple TV+ showrunners not to anger China — everyone pretty much agrees it was not the best timing for this news.

Unfortunately for Apple, it can’t abandon China now, as it’s grown too dependent on its business there. As Vox recently reported:

Unlike tech companies that haven’t broken into the country or only do minor business in it, Apple is now so deep in China that leaving it could be catastrophic. Even if the company was willing to forgo the $44 billion a year in sales it makes in China, it can’t leave the deep network of suppliers and assemblers that build hundreds of millions of iPhones every year.

Millions of malicious apps get booted from Google Play…and malicious apps spotted on the App Store, too

Malicious apps were found on both Google Play and the App Store this week. But these stories are not at all the same.

Security researchers found dozens of Android apps in the Google Play store serving ads to unsuspecting victims as part of a money-making scheme. The 42 apps containing adware had been downloaded more than 8 million times since they first launched in July 2018. The apps were also sending back data about the user’s device, TechCrunch reported — including if certain apps are installed and if the device allows apps from non-app store sources — which could be used to install more malicious software.

Sadly, this kind of thing happens a lot on Google Play.

What’s less common, however, is to find malware on the App Store — which happened this week, when 17 malicious apps were removed.

Screen Shot 2019 10 22 at 12.52.56 PM 1024x502


Source: Tech Crunch

London’s top consumer VCs share which trends they’re tracking

With 72 unicorns created since 2009 and $8.7 billion in venture funding last year, the UK is Europe’s leading startup hub.

Although it remains uncertain how Brexit will impact startups’ ease of recruiting and rapid scaling, initial pains are unlikely to displace London from its position as a global center for finance, media, retail, and technology.

As UK-based startups reach $1 billion (~£800 million) valuations at a rate of one per month, according to data from Dealroom, VC firms have raised $3.5 billion in new funds to fuel the next wave of investments.

Interested to learn where that capital could flow, I asked nine of London’s top consumer-focused VCs to find out which specific trends they’re using to identify startup investment opportunities:

  • Julia Hawkins, Partner at LocalGlobe
  • Lars Fjeldsoe-Nielsen, Partner at Balderton
  • Sonali De Rycker, Partner at Accel Partners
  • Christian Dorffer, Partner at Sweet Capital
  • Danny Rimer, Partner at Index Ventures
  • Reshma Sohoni, Managing Partner at Seedcamp
  • Niall Wass, Partner at Atomico
  • Paul Murphy, Partner at Northzone
  • Nic Brisbourne, Partner at Forward Partners

Their responses highlighted the diversify of funding interests in the ecosystem, but also show that banking, consumer health, transport, direct-to-consumer brands, and social entertainment remain hot areas.

Julia Hawkins, Partner at LocalGlobe

“I’m very focused on the healthtech sector and within consumer health, I’m particularly interested in the potential for digital therapeutics to enable people to gain control over habits and treat certain chronic conditions such as mental health. 

We’re thinking deeply about transportation, we’re already investors in Citymapper, Beryl and Voi and see the huge potential to improve how people move around cities and influence how urban centers are planned, all while reducing pollution.  

On that topic, we’re watching the climate change debate closely and I’m heartened by the fact that people everywhere are becoming wholly committed to reducing waste. Companies that can produce truly circular products for our families, homes and places of work I think will do well.

It’s an incredibly interesting time in media with titanic worlds of video, gaming and music are shifting and I believe in the transformative power of games, music and immersive experiences — TikTok and Fortnite show just how powerful these can be and I believe new platforms such as Playdeo will make consuming media and entertainment much more active experiences in the future.”

Lars Fjeldsoe-Nielsen, Partner at Balderton

“We are excited about the disruption within the European transportation sector, where we’ve seen new types of vehicles, like e-scooters from VOI, and amazing advances in autonomous mobility solutions. Time is up for car ownership in many city centers and competition is fierce for environmentally-friendly alternatives. This creates an exciting opportunity to use tech to improve public transport options and to leverage the sharing economy which Citymapper offers, as well as overhaul the car hire sector as new players like Virtuo are aiming to do.

We are also impressed by the continued innovation in the financial sector. We are long-time investors in fintech and have backed Revolut and GoCardless, amongst others. Traditional banks and financial incumbents are battling fragmented and outdated technology stacks to adapt to rapidly changing consumer demands, which creates a huge opportunity for startups.”

Sonali De Rycker, Partner at Accel Partners

“We’re excited about three key trends in consumer tech. The first is fintech, for which the UK has created a very supportive environment. A few large businesses are being built from London, like Monzo, buoyed by new rules written around retail banking and next generation financial services as well as huge, unmet customer demand.

The second is healthtech. Healthcare is a large and untapped opportunity plagued by rising costs for providers and deteriorating patient experience. We are seeing a few platform companies that are finding ways to successfully solve these problems by providing digital healthcare to consumers, like Kry out of Sweden.


Source: Tech Crunch

Quantum computing’s ‘Hello World’ moment

Does quantum computing really exist? It’s fitting that for decades this field has been haunted by the fundamental uncertainty of whether it would, eventually, prove to be a wild goose chase. But Google has collapsed this nagging superposition with research not just demonstrating what’s called “quantum supremacy,” but more importantly showing that this also is only the very beginning of what quantum computers will eventually be capable of.

This is by all indications an important point in computing, but it is also very esoteric and technical in many ways. Consider, however, that in the 60s, the decision to build computers with electronic transistors must have seemed rather an esoteric point as well. Yet that was in a way the catalyst for the entire Information Age.

Most of us were not lucky enough to be involved with that decision or to understand why it was important at the time. We are lucky enough to be here now — but understanding takes a bit of explanation. The best place to start is perhaps with computing and physics pioneers Alan Turing and Richard Feynman.

‘Because nature isn’t classical, dammit’

The universal computing machine envisioned by Turing and others of his generation was brought to fruition during and after World War II, progressing from vacuum tubes to hand-built transistors to the densely packed chips we have today. With it evolved an idea of computing that essentially said: If it can be represented by numbers, we can simulate it.

That meant that cloud formation, object recognition, voice synthesis, 3D geometry, complex mathematics — all that and more could, with enough computing power, be accomplished on the standard processor-RAM-storage machines that had become the standard.

But there were exceptions. And although some were obscure things like mathematical paradoxes, it became clear as the field of quantum physics evolved that it may be one of them. It was Feynman who proposed in the early 80s that if you want to simulate a quantum system, you’ll need a quantum system to do it with.

“I’m not happy with all the analyses that go with just the classical theory, because nature isn’t classical, dammit, and if you want to make a simulation of nature, you’d better make it quantum mechanical,” he concluded, in his inimitable way. Classical computers, as he deemed what everyone else just called computers, were insufficient to the task.

GettyImages feynman

Richard Feynman made the right call, it turns out.

The problem? There was no such thing as a quantum computer, and no one had the slightest idea how to build one. But the gauntlet had been thrown, and it was like catnip to theorists and computer scientists, who since then have vied over the idea.

Could it be that with enough ordinary computing power, power on a scale Feynman could hardly imagine — data centers with yottabytes of storage and exaflops of processing — we can in fact simulate nature down to its smallest, spookiest levels?

Or could it be that with some types of problems you hit a wall, and that you can put every computer on Earth to a task and the progress bar will only tick forward a percentage point in a million years, if that?

And, if that’s the case, is it even possible to create a working computer that can solve that problem in a reasonable amount of time?

In order to prove Feynman correct, you would have to answer all of these questions. You’d have to show that there exists a problem that is not merely difficult for ordinary computers, but that is effectively impossible for them to solve even at incredible levels of power. And you would have to not just theorize but create a new computer that not just can but does solve that same problem.

By doing so you would not just prove a theory, you would open up an entirely new class of problem-solving, of theories that can be tested. It would be a moment when an entirely new field of computing first successfully printed “hello world” and was opened up for everyone in the world to use. And that is what the researchers at Google and NASA claim to have accomplished.

In which we skip over how it all actually works

google quantum team

One of the quantum computers in question. I talked with that fellow in the shorts about microwave amps and attenuators for a while.

Much has already been written on how quantum computing differs from traditional computing, and I’ll be publishing another story soon detailing Google’s approach. But some basics bear mentioning here.

Classical computers are built around transistors that, by holding or vacating a charge, signify either a 1 or a 0. By linking these transistors together into more complex formations they can represent data, or transform and combine it through logic gates like AND and NOR. With a complex language specific to digital computers that has evolved for decades, we can make them do all kinds of interesting things.

Quantum computers are actually quite similar in that they have a base unit that they perform logic on to perform various tasks. The difference is that the unit is more complex: a qubit, which represents a much more complex mathematical space than simply 0 or 1. Instead you may think of their state may be thought of as a location on a sphere, a point in 3D space. The logic is also more complicated, but still relatively basic (and helpfully still called gates): That point can be adjusted, flipped, and so on. Yet the qubit when observed is also digital, providing what amounts to either a 0 or 1 value.

By virtue of representing a value in a richer mathematical space, these qubits and manipulations thereof can perform new and interesting tasks, including some which, as Google shows, we had no ability to do before.

A quantum of contrivance

In order to accomplish the tripartite task summarized above, first the team had to find a task that classical computers found difficult but that should be relatively easy for a quantum computer to do. The problem they settled on is in a way laughably contrived: Being a quantum computer.

In a way it makes you want to just stop reading, right? Of course a quantum computer is going to be better at being itself than an ordinary computer will be. But it’s not actually that simple.

Think of a cool old piece of electronics — an Atari 800. Sure, it’s very good at being itself and running its programs and so on. But any modern computer can simulate an Atari 800 so well that it could run those programs in orders of magnitude less time. For that matter, a modern computer can be simulated by a supercomputer in much the same way.

Furthermore, there are already ways of simulating quantum computers — they were developed in tandem with real quantum hardware so performance could be compared to theory. These simulators and the hardware they simulate differ widely, and have been greatly improved in recent years as quantum computing became more than a hobby for major companies and research institutions.

qubit lattice

This shows the “lattice” of qubits as they were connected during the experiment (colored by the amount of error they contributed, which you don’t need to know about.)

To be specific, the problem was simulating the output of a random sequence of gates and qubits in a quantum computer. Briefly stated, when a circuit of qubits does something, the result is, like other computers, a sequence of 0s and 1s. If it isn’t calculating something in particular, those numbers will be random — but crucially, they are “random” in a very specific, predictable way.

Think of a pachinko ball falling through its gauntlet of pins, holes and ramps. The path it takes is random in a way, but if you drop 10,000 balls from the exact same position into the exact same maze, there will be patterns in where they come out at the bottom — a spread of probabilities, perhaps more at the center and less at the edges. If you were to simulate that pachinko machine on a computer, you could test whether your simulation is accurate by comparing the output of 10,000 virtual drops with 10,000 real ones.

It’s the same with simulating a quantum computer, though of course rather more complex. Ultimately however the computer is doing the same thing: simulating a physical process and predicting the results. And like the pachinko simulator, its accuracy can be tested by running the real thing and comparing those results.

But just as it is easier to simulate a simple pachinko machine than a complex one, it’s easier to simulate a handful of qubits than a lot of them. After all, qubits are already complex. And when you get into questions of interference, slight errors and which direction they’d go, etc. — there are, in fact, so many factors that Feynman decided at some point you wouldn’t be able to account for them all. And at that point you would have entered the realm where only a quantum computer can do so — the realm of “quantum supremacy.”

Exponential please, and make it a double

After 1,400 words, there’s the phrase everyone else put right in the headline. Why? Because quantum supremacy may sound grand, but it’s only a small part of what was accomplished, and in fact this result in particular may not last forever as an example of having reached those lofty heights. But to continue.

Google’s setup, then, was simple. Set up randomly created circuits of qubits, both in its quantum computer and in the simulator. Start simple with a few qubits doing a handful of operational cycles and compare the time it takes to produce results.

Bear in mind that the simulator is not running on a laptop next to the fridge-sized quantum computer, but on Summit — a supercomputer at Oak Ridge National Lab currently rated as the most powerful single processing system in the world, and not by a little. It has 2.4 million processing cores, a little under 3 petabytes of memory, and hits about 150 petaflops.

At these early stages, the simulator and the quantum computer happily agreed — the numbers they spat out, the probability spreads, were the same, over and over.

But as more qubits and more complexity got added to the system, the time the simulator took to produce its prediction increased. That’s to be expected, just like a bigger pachinko machine. At first the times for actually executing the calculation and simulating it may have been comparable — a matter of seconds or minutes. But those numbers soon grew hour by hour as they worked their way up to 54 qubits.

When it got to the point where it took the simulator five hours to verify the quantum computer’s result, Google changed its tack. Because more qubits isn’t the only way quantum computing gets more complex (and besides, they couldn’t add any more to their current hardware). Instead, they started performing more rounds of operations with a given circuit, which adds all kinds of complexity to the simulation for a lot of reasons that I couldn’t possibly explain.

For the quantum computer, doing another round of calculations takes a fraction of a second, and even multiplied by thousands of times to get the required number of runs to produce usable probability numbers, it only ended up taking the machine several extra seconds.

schroed feyn chart

You know it’s real because there’s a chart. The dotted line (added by me) is the approximate path the team took, first adding qubits (x-axis) and then complexity (y-axis).

For the simulator, verifying these results took a week — a week, on the most powerful computer in the world.

At that point the team had to stop doing the actual simulator testing, since it was so time-consuming and expensive. Yet even so, no one really claimed that they had achieved “quantum supremacy.” After all, it may have taken the biggest classical computer ever created thousands of times longer, but it was still getting done.

So they cranked the dial up another couple notches. 54 qubits, doing 25 cycles, took Google’s Sycamore system 200 seconds. Extrapolating from its earlier results, the team estimated that it would take Summit 10,000 years.

What happened is what the team called double exponential increase. It turns out that adding qubits and cycles to a quantum computer adds a few microseconds or seconds every time — a linear increase. But every qubit you add to a simulated system makes that simulation exponentially more costly to run, and it’s the same story with cycles.

Imagine if you had to do whatever number of push-ups I did, squared, then squared again. If I did 1, you would do 1. If I did 2, you’d do 16. So far no problem. But by the time I get to 10, I’d be waiting for weeks while you finish your 10,000 push-ups. It’s not exactly analogous to Sycamore and Summit, since adding qubits and cycles had different and varying exponential difficulty increases, but you get the idea. At some point you can have to call it. And Google called it when the most powerful computer in the world would still be working on something when in all likelihood this planet will be a smoking ruin.

It’s worth mentioning here that this result does in a way depend on the current state of supercomputers and simulation techniques, which could very well improve. In fact IBM published a paper just before Google’s announcement suggesting that theoretically it could reduce the time necessary for the task described significantly. But it seems unlikely that they’re going to improve by multiple orders of magnitude and threaten quantum supremacy again. After all, if you add a few more qubits or cycles, it gets multiple orders of magnitude harder again. Even so, advances on the classical front are both welcome and necessary for further quantum development.

‘Sputnik didn’t do much, either’

So the quantum computer beat the classical one soundly on the most contrived, lopsided task imaginable, like pitting an apple versus an orange in a “best citrus” competition. So what?

Well, as founder of Google’s Quantum AI lab Hartmut Neven pointed out, “Sputnik didn’t do much either. It just circled the Earth and beeped.” And yet we always talk about an industry having its “Sputnik moment” — because that was when something went from theory to reality, and began the long march from reality to banality.

2019 SB Google 0781

The ritual passing of the quantum computing core.

That seemed to be the attitude of the others on the team I talked with at Google’s quantum computing ground zero near Santa Barbara. Quantum superiority is nice, they said, but it’s what they learned in the process that mattered, by confirming that what they were doing wasn’t pointless.

Basically it’s possible that a result like theirs could be achieved whether or not quantum computing really has a future. Pointing to one of the dozens of nearly incomprehensible graphs and diagrams I was treated to that day, hardware lead and longtime quantum theorist John Martines explained one crucial result: The quantum computer wasn’t doing anything weird and unexpected.

This is very important when doing something completely new. It was entirely possible that in the process of connecting dozens of qubits and forcing them to dance to the tune of the control systems, flipping, entangling, disengaging, and so on — well, something might happen.

Maybe it would turn out that systems with more than 14 entangled qubits in the circuit produce a large amount of interference that breaks the operation. Maybe some unknown force would cause sequential qubit photons to affect one another. Maybe sequential gates of certain types would cause the qubit to decohere and break the circuit. It’s these unknown unknowns that have caused so much doubt over whether, as asked at the beginning, quantum computing really exists as anything more than a parlor trick.

Imagine if they discovered that in digital computers, if you linked too many transistors together, they all spontaneously lost their charge and went to 0. That would put a huge limitation on what a transistor-based digital computer was capable of doing. Until now, no one knew if such a limitation existed for quantum computers.

“There’s no new physics out there that will cause this to fail. That’s a big takeaway,” said Martines. “We see the same errors whether we have a simple circuit or complex one, meaning the errors are not dependent on computational complexity or entanglement — which means the complex quantum computing going on doesn’t have fragility to it because you’re doing a complex computation.”

They operated a quantum computer at complexities higher than ever before, and nothing weird happens. And based on their observations and tests, they found that there’s no reason to believe they can’t take this same scheme up to, say, a thousand qubits and even greater complexity.

Hello world

That is the true accomplishment of the work the research team did. They found out, in the process of achieving the rather overhyped milestone of quantum superiority, that quantum computers are something that can continue to get better and to achieve more than simply an interesting experimental results.

This was by no means a given — like everything else in the world, quantum or classical, it’s all theoretical until you test it.

It means that sometime soonish, though no one can really say when, quantum computers will be something people will use to accomplish real tasks. From here on out, it’s a matter of getting better, not proving the possibility; of writing code, not theorizing whether code can be executed.

It’s going from Feynman’s proposal that a quantum computer will be needed to using a quantum computer for whatever you need it for. It’s the “hello world” moment for quantum computing.

Feynman, by the way, would probably not be surprised. He knew he was right.

Google’s paper describing their work was published in the journal Nature. You can read it here.


Source: Tech Crunch

Hyundai is launching BotRide, a robotaxi service in California with Pony.ai and Via

A fleet of electric, autonomous Hyundai Kona crossovers — equipped with a self-driving system from Chinese autonomous startup Pony .ai and Via’s ride-hailing platform, will start shuttling customers on public roads next week.

The robotaxi service called BotRide will operate on public roads in Irvine, California, beginning November 4. This isn’t a driverless service; there will be a human safety driver behind the wheel at all times. But it is one of the few ride-hailing pilots on California roads. Only four companies, AutoX, Pony.ai, Waymo and Zoox have permission to operate a ride-hailing service using autonomous vehicles in the state of the California.

Customers will be able to order rides through a smartphone app, which will direct passengers to nearby stops for pick up and drop off. Via’s expertise is on shared rides, and this platform aims for the same multiple rider goal. Via’s platform handles the on-demand ride-hailing features such as booking, passenger and vehicle assignment and vehicle identification (QR code). Via has two sides to its business. The company operates consumer-facing shuttles in Chicago, Washington, D.C. and New York. It also partners with cities and transportation authorities — and now automakers launching robotaxi services — giving clients access to their platform to deploy their own shuttles.

Hyundai said BotRide is “validating its user experience in preparation for a fully driverless future.” Hyundai didn’t explain when this driverless future might arrive. Whatever this driverless future ends up looking like, Hyundai sees this pilot as a critical marker along the way.

Coverage area of Hyundai robotaxi pilot

Hyundai said it is using BotRide to study consumer behavior in an autonomous ride-sharing environment, according to Christopher Chang, head of business development, strategy and technology division, Hyundai Motor Company .

“The BotRide pilot represents an important step in the deployment and eventual commercialization of a growing new mobility business,” said Daniel Han, manager, Advanced Product Strategy, Hyundai Motor America.

Hyundai might be the household name behind BotRide, but Pony.ai and Via are doing much of the heavy lifting. Pony.ai is a relative newcomer to the AV world, but it has already raised $300 million on a $1.7 billion valuation and locked in partnerships with Toyota and Hyundai.

The company, which has operations in China and California and about 500 employees globally, was founded in late 2016 with backing from Sequoia Capital China, IDG Capital and Legend Capital.

It’s also one of the few autonomous vehicle companies to have both a permit with the California Department of Motor Vehicles to test AVs on public roads and permission from the California Public Utilities Commission to use these vehicles in a ride-hailing service. Under rules established by the CPUC, Pony.ai cannot charge for rides.


Source: Tech Crunch

Daily Crunch: Facebook launches its News section

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. Facebook starts testing News, its new section for journalism

Facebook’s news section, which was previously reported to be imminent, is here: The company is rolling out Facebook News in a limited test in the U.S. as a home screen tab and bookmark in the main Facebook app.

Should publishers trust Facebook? Well, Josh Constine argues that none of them have learned the right lessons from the last 10 years.

2. Pixelbook Go review: a Chromebook in search of meaning

The Go is clearly Google’s attempt to lead the way for manufacturers looking to explore Chromebook life outside the classroom. It has some nice hardware perks, but it’s not the revolution or revelation ChromeOS needs.

3. SpaceX wants to land Starship on the Moon before 2022, then do cargo runs for 2024 human landing

SpaceX president and COO Gwynne Shotwell shed a little more light on her company’s current thinking with regards to the mission timelines for its forthcoming Starship spacefaring vehicle.

4. After its first earnings miss in two years, Amazon shares get walloped in after-hours trading

Amazon shares fell by nearly 7% in after-hours trading on Thursday after the company reported its first earnings miss in two years.

5. Lawmakers ask US intelligence chief to investigate if TikTok is a national security threat

In a letter by Sens. Charles Schumer (D-NY) and Tom Cotton (R-AR), the lawmakers asked the acting director of national intelligence Joseph Maguire if the app maker could be compelled to turn Americans’ data over to Chinese authorities.

6. The SaaS gold rush will become the ‘Hunger Games’

Enterprise software investor Rory O’Driscoll says that while the cloud is obviously here to stay, the next five years in cloud investing will neither be the same nor as easy as the last 10. (Extra Crunch membership required.)

7. Learn how to raise your first euros at TechCrunch Disrupt Berlin

Startup funding experts — including Forward Partners managing partner Nic Brisbourne, Target Global partner Malin Holmberg and DocSend co-founder and chief executive officer Russ Heddleston — will sit down together on the Extra Crunch Stage at TechCrunch Disrupt Berlin.


Source: Tech Crunch

Here’s where top gaming VCs are looking for startup opportunities

With cross-platform experiences like Fortnite and PUBG, in-game socializing environments, and subscription-based cloud gaming services from Playstation, Google, Amazon, and others, the gaming industry is entering a new era beyond mobile.

These days, the industry is at the center of social media and entertainment trends; gaming is expected to earn $152 billion in global revenue this year, up 9.6% year over year. 

Given my recent writing on Unity, the most-used game engine, and ongoing research into interactive media trends, I wanted to find out how top gaming-focused VCs are assessing the market right now. I asked ten of them to share which trends they are most excited about when it comes to finding investment opportunities:

  • David Gardner, Partner at London Venture Partners
  • Henric Suuronen, Partner at Play Ventures
  • Samuli Syvähuoko, Partner at Sisu Game Ventures
  • Jay Chi, Partner at Makers Fund
  • Peter Levin, Managing Director at Griffin Gaming Partners
  • Gigi Levy-Weiss, Partner at NFX
  • Ethan Kurzweil, Partner at Bessemer Venture Partners
  • Jonathan Lai, Partner at Andreessen Horowitz
  • Blake Robbins, Partner at Ludlow Ventures
  • Jon Goldman, General Partner at GC Tracker & Board Partner at Greycroft Partners

Amid the mix of predictions, there were several common threads, such as optimism about the rise of games as broader social platforms, opportunities to invest directly in new studios, and skepticism about near-term investments in augmented or virtual reality and blockchain.

Here are their responses.

David Gardner, Partner at London Venture Partners

“PC Games are back. Great place to start new IP to then migrate a success to multiple platforms. There is more innovation in business models and more open distribution on PC to facilitate audience growth without the punishment of mobile CPIs.

VR & AR remain out. We stood away from VR in the beginning and extend that to AR while the user experience for games remains a disappointment. Let’s hope those new Apple glasses do the trick!

Crypto remain a theological war zone, but honestly everything on offer has been available in the cloud world, but the real consumer benefit isn’t showing up.

We love games that are expanding audience demographics and are sensitive to less hardcore audiences.  For example, women players are estimated to account for 1 billion gamers.”

Henric Suuronen, Partner at Play Ventures

“At Play Ventures, we believe we have just entered the golden era of mobile gaming. Who would have believed 10 years ago that Nintendo and games like Fortnite and Call of Duty would all be on mobile. Mobile is not just a games platform anymore, it is THE games platform of choice for casual and core players alike. Consequently, in the next 2-3 years we will invest in 30-40 mobile games studios across the globe.”

Samuli Syvähuoko, Partner at Sisu Game Ventures

“We at Sisu Game Ventures have been investing in many sectors since 2015 including free-to-play mobile games (especially big here in Finland), VR, AR, PC, console, instant messenger, hypercasual, audio and most recently cloud-native games as well. In addition to game studios, around a third of our investments are into games related tech/infrastructure. 

We’ve so far not dipped our toes into blockchain or eSports and our appetite for doing more investments in VR and AR is nil. To me, the most interesting mega trends lie with the promise of cloud gaming when utilized to its full potential. Another term that encapsulates my excitement is games-as-a-social-hobby. Put this and the extreme accessibility of the cloud together and you’ll have a game with revolutionary potential.”

Jay Chi, Partner at Makers Fund

“We are looking closely at ‘Gaming as Media’ related content and platforms — the emergence of new interactive experience centered on ‘viewers as participants.’ Gaming as social media falls under this thesis. We are also looking for MMO and Metaverse enablers given increased demand for specialized, scalable and affordable technologies that empower lean startup teams to create and operate large-scale worlds and novel gameplays. 

We also see potential for new start-ups to emerge in hypercasual games with midcore/social meta — no one has truly cracked this genre yet.”


Source: Tech Crunch