Business
Google, Nvidia and other tech titans sign AI deal with the Pentagon
Eight technology companies, including Google, Nvidia and SpaceX, have struck deals with the Pentagon to help the U.S. military gain an edge on the battlefield.
“These agreements accelerate the transformation toward establishing the United States military as an AI-first fighting force and will strengthen our warfighters’ ability to maintain decision superiority across all domains of warfare,” the Department of Defense said Friday.
The companies will deploy their AI technology on the department’s “classified networks” for “lawful operational use,” according to the agency.
OpenAI, Microsoft, Amazon Web Services, Oracle and AI startup Reflection are among the companies that agreed to work with the Pentagon.
The agreements underscore how tech companies are expanding their work with the U.S. military even as some workers raise concerns about the use of AI for autonomous weapons and mass surveillance. Anthropic, the San Francisco company behind the chatbot Claude, clashed with the Pentagon earlier this year over whether there were adequate safeguards around the military’s use of its technology.
The Department of Defense accused Anthropic of trying to “seize veto power” over military decisions, though the company pushed back against that characterization. The agency labeled Anthropic a supply chain risk, and the Trump administration directed federal agencies to stop using the company’s tools, setting off a legal battle over that designation.
This week, hundreds of Google employees urged its chief executive, Sundar Pichai, to reject the use of its AI systems for classified workloads to ensure that its technology isn’t used in “inhumane or extremely harmful ways.” Harmful use may occur without their knowledge since the work is classified, workers said in the letter.
Google, Reflection and SpaceX didn’t respond to a request for comment. The Department of Defense didn’t say how much each company was being paid. A Pentagon official said some of the companies have active contracts while others have made agreements but formal contract are forthcoming.
In an interview with CNBC, the Pentagon’s chief technology officer, Emil Michael, said the department wanted to diversify the companies it worked with following its dispute with Anthropic.
“Guardrails are something that are negotiable based on what they are with all the companies, and they have different views on that,” he told CNBC. The guardrails also have to be consistent with the government’s values and restrictions, he added.
A source familiar with Nvidia’s Pentagon deal said the agreement involves work with its “Nemotron” AI models, which are used to build AI agents that can complete tasks, not its chips. The deal includes language that the use of the models will be consistent with civil liberties, constitutional rights and applicable law, the source said.
OpenAI said the deal announced by the Department of Defense refers to the agreement they struck with the agency earlier this year.
The company said that it wanted “the people defending the United States to have the best tools.”
OpenAI, which faced backlash for striking a deal with the Pentagon after the Anthropic fallout, said in March that its technology wouldn’t be used for mass domestic surveillance, high-stakes automated decisions or to direct autonomous weapons.
Other tech companies, such as Microsoft, Oracle and Amazon Web Services, have also said they want to support the military and ensure they have access to the best AI tools.
“We look forward to continuing to support the Department of War’s modernization efforts, building AI solutions that help them accomplish their critical missions,” Amazon Web Services spokesperson Tim Barrett said in a statement.
Business
FDA escalates recall of Utz brand potato chips before July Fourth holiday
The recall of a popular chip brand over salmonella concerns was recently upgraded to the U.S. Food and Drug Administration’s highest level, just ahead of the Fourth of July holiday and countless backyard barbecues.
On June 24, the FDA designated the recall of several varieties of Zapp’s and Dirty brand potato chips as Class I, meaning it’s “a situation in which there is a reasonable probability that the use of or exposure to a violative product will cause serious adverse health consequences or death.”
FDA has classified the following items as Class I:
Zapp’s
- 1.5-ounce Zapp’s Bayou Blackened Ranch Kettle Chips
- 2.5- and 8-ounce Zapp’s Bayou Blackened Ranch Potato Chips
- 1.5- and 8-ounce Zapp’s Big Cheezy Potato Chips
Dirty
- 1.5- and 2-ounce Dirty Brand Salt and Vinegar Potato Chips
- 2-ounce Dirty Maui Onion Chips
- 2-ounce Dirty Sour Cream and Onion Potato Chips
The chips are produced by Utz Quality Foods, LLC, which on April 28 issued a recall after learning “that a seasoning containing dry milk powder, sourced from California Dairies, Inc. and supplied by a third-party supplier, may contain the presence of Salmonella.”
Salmonella can lead to sometimes deadly infections in elderly people, young children and those with weakened immune systems, according to the FDA.
More than 680,000 bags are included in the recall.
Anyone who has these products should not eat them and should discard them immediately.
What to look for
Salmonella is a foodborne illness that can be fatal to young children, pregnant women, older adults and people with weakened immune systems, according to the National Institutes of Health.
Symptoms may develop 12 to 72 hours after infection, according to the FDA.
The FDA said that people with strong immune systems infected with salmonella may experience fever, diarrhea (which may be bloody), nausea, vomiting and abdominal pain. The illness can last four to seven days.
In rare cases, the infection may produce more severe illnesses such as arterial infections, endocarditis and arthritis, the agency added.
What to do if infected
If you contract salmonella, the Centers for Disease Control and Prevention recommends drinking plenty of fluids to prevent dehydration.
The CDC advises consulting a doctor before taking antidiarrheal medicine or antibiotics. If severe symptoms continue after two days, seek medical help, the agency says.
Because those with diarrhea can spread salmonella to others, it’s also recommended to avoid sharing food or preparing meals for others, sexual contact and swimming in public pools, and to stay home while sick.
Times staff writer Jasmine Mendez contributed to this report.
Business
‘Minions & Monsters’ tops the box office, but with a lower-than-expected haul
The Minions took over theaters this weekend as Universal Pictures and Illumination’s “Minions & Monsters” won the top spot at the box office, though with a lower-than-expected domestic haul.
The animated movie, which follows the Minions’ takeover of Hollywood, took in $61.4 million in the U.S. and Canada for the five-day Fourth of July holiday weekend, according to studio estimates. That haul was lower than analysts’ expectations for a domestic opening of about $68 million. The movie’s three-day total was $36.4 million.
But the Minions performed well internationally, bringing in about $85 million. In total, “Minions & Monsters” made $159.9 million worldwide on a production budget of about $85 million.
The film is the latest in the powerhouse franchise that began with “Despicable Me” in 2010. Across its previous six installments, the “Despicable Me” and “Minions” franchise has made more than $5.6 billion at the global box office. The last movie, 2022’s “Minions: The Rise of Gru,” made more than $940 million worldwide.
“Minions & Monsters” marks the lowest opening for the franchise. Part of the issue could be timing — the box office can be negatively affected when the Fourth of July lands on a Saturday, said Paul Dergarabedian, head of marketplace trends at Rentrak.
Walt Disney Co. and Pixar’s “Toy Story 5” came in second at the box office this weekend with a domestic three-day gross of $31 million. Angel Studios’ biopic “Young Washington” ($20.8 million), Warner Bros. and DC Studios’ “Supergirl” ($9.6 million) and Universal’s “Disclosure Day” ($6 million) rounded out the top five, according to Rentrak.
The haul for “Minions & Monsters,” coupled with the strong holdover performance of “Toy Story 5,” proved again that family films are making a dent in the summer box office.
“Toy Story 5” has now brought in a total of $764.3 million worldwide, and last month, Universal, Illumination and Nintendo’s “The Super Mario Galaxy Movie” crossed $1 billion at the global box office, becoming the first film of any kind to do so this year.
The rest of the summer theatrical lineup is also expected to bring in audiences and push domestic box office totals closer to pre-pandemic figures. Next week, Disney will release its live-action “Moana,” followed by Christopher Nolan’s “The Odyssey” and Sony Pictures’ “Spider-Man: Brand New Day.”
To date, the summer box office is now about $2.3 billion, a nearly 12% increase compared with the same period a year ago, according to Rentrak data. Compared with pre-pandemic 2019’s numbers, however, it is still down about 7%.
Business
China-backed AI tool behind fake Brad Pitt fight making Hollywood inroads
Earlier this year, a widely circulated 15-second AI-generated video of Brad Pitt fighting Tom Cruise on a rooftop sparked outrage across Hollywood. One screenwriter called the cinematic clip “terrifying.” The Motion Picture Assn. demanded the company behind the artificial intelligence tool — Chinese tech giant ByteDance — halt its “infringing activity.”
Despite the uproar, the former majority owner of TikTok has quietly continued to court filmmakers, independent artists and executives who are eager to adopt the AI video generation model called Seedance.
Seedance was launched in the U.S. this spring at a Santa Monica event hosted by a group linked to the Chinese government.
ByteDance began hiring for 100 open roles, signed multiple independent filmmakers and artists and held private conversations about financing AI films. The company threw a lavish caviar party at Cannes and in May hosted panels promoting its cinematic tool at Amazon’s AI on the Lot event in Culver City.
“Like any new technology, Hollywood ultimately has no choice but to react to market realities. And that reality is that the new crop of AI-empowered Hollywood creatives see Seedance as having the most powerful video generator in the market right now,” said Peter Csathy of Creative Media, an entertainment and AI business advisory firm.
Joel Kuwahara, the animation producer on early seasons of “The Simpsons,” echoed Hollywood’s quiet embrace.
“Within the industry, I know that a lot of studios haven’t approved Seedance, but yet with a wink and a nod, they’re allowing Seedance to be used. … It’s kind of like a ‘don’t ask, don’t tell’ kind of a thing,’” Kuwahara told The Times.
ByteDance declined to comment on its U.S. expansion.
The race to build the dominant AI video model has created a fierce rivalry, pitting U.S. companies against the fast-closing Chinese competitors. On the American side, there are Google Veo and startups such as Runway and Luma. OpenAI’s Sora has discontinued its video tool.
The Chinese challengers Seedance, Kling and Alibaba’s HappyHorse have rapidly closed the gap on cinematic realism and have upstaged their American rivals by undercutting them on cost.
According to Artificial Analysis, a company that tracks cost and performances of different AI models, China’s Seedance is currently the most cost-effective and high-quality option compared with U.S. competitors. Seedance costs $9 per minute for video with audio generation, significantly lower than the $24 per minute required by Google’s Veo model.
That makes it an attractive tool for independent filmmakers like Rupert Wainwright, who recently met with Seedance executives at AI on the Lot.
He wants to use the the tool to help make his feature-length film called “Sebastian,” about a Christian saint set in 3rd century Rome. The hybrid AI film will be shot partly on location in Europe and partly generated with artificial intelligence.
“It’s the equivalent to when streaming a movie over the internet onto your TV finally became possible,” Wainwright said.
Kavan Cardoza.
(Kayla Bartkowski/Los Angeles Times)
A scene from “The Chronicles of Bone.”
(Kayla Bartkowski/Los Angeles Times)
In May, Steven Schneider, the producer of “Paranormal Activity,” famous for its handheld grainy footage-style filmmaking, announced “Terrarium,” his first hybrid AI horror production. The film’s director, Jason Zada, said it will be entirely generated using Seedance’s model.
Zada’s filmmaking workflow involves writing, casting, prompting and editing all simultaneously, allowing him to rewrite scripts based on “dailies” generated by AI that day.
He estimates that generating 15 seconds of high-definition video costs only $5.
“We could go from a very detailed outline, very detailed characters and have it be a bit more fluid, because we could regen[erate] as much as we want,” Zada said.
Zada plans to shoot the movie first on a soundstage with real actors and will decide later which parts work better traditionally and what should be done synthetically. He’s a member of the Directors Guild of America and said he will be employing union actors for his hybrid AI film.
Seedance also has continued building ties by offering indie creators, AI-native studios and filmmakers free monthly credits and access to unreleased features. These “tastemakers” beta test its models, offer feedback on what works, and use it for their personal filmmaking projects — which creates corporate brand awareness.
Kavan Cardoza is one such breakout filmmaker. His AI fantasy series, “The Chronicle of Bones,” which uses Seedance, features half a dozen distinct storylines and an ensemble of characters. New episodes, each not more than 30 minutes, are released on YouTube once a month. The solo filmmaker averages 3 million views per episode and has cultivated a YouTube audience of 500,000.
Most filmmakers are tool agnostic, but lately Cardoza has become completely dependent on Seedance, he said, because it solves a persistent problem: maintaining character consistency between shots.
Kavan Cardoza unmasked.
(Kayla Bartkowski/Los Angeles Times)
To create one of his characters, “the last lost boy,” Cardoza took self-portraits wearing a three-faced mask and a tattered brown jacket. He used those reference images for the AI character and transforms them into a stylized person, with a personality, backstory and visual details. He fed those images back to Seedance to get consistent characters — repeating the process for each member of the cast.
“I can’t go get Brad Pitt because he costs like $5, 10, 20 million to be in my film,” Cardoza said. “I can probably get a synthetic actor that will act just as good as Brad Pitt in the future. That’s crazy to me.”
Cardoza has copyrighted his script and characters, and aims to eventually attract major studio interest to turn his intellectual property into a film which comes with a built-in fan base.
Such plans are likely to face resistance from the performers union SAG-AFTRA, which has decried the use of synthetic actors such as Tilly Norwood.
“The rise of Seedance comes down to [its] focus on pleasing filmmakers and making things that look filmic,” said Stephan Vladimir Bugaj, senior vice president of JioStar, a joint venture between Disney and India’s Reliance Industries.
ByteDance introduced timeline-based prompting so filmmakers can actually pick specific moments and tweak them, and improved the understanding of camera direction, physics, lighting and fluidity of action. All of this, Bugaj said, “unlocked a kind of spectacle filmmaking that the other models are not delivering quite as well.”
The company’s tool has been in such high demand, Zada said, that Seedance has been quoting some major Hollywood studios $2 million for unrestricted special access.
While acknowledging Seedance’s popularity and its U.S. expansion, Amit Jain, chief executive of Luma, said its ceiling in Hollywood is severely limited. Traditional studios might adopt Chinese models for some preproduction tasks such as concepting, but the geopolitical and intellectual property risks for commercial generations are too prohibitive.
“Can you imagine Disney using the ByteDance model for the next ‘Snow White’? No way,” Jain said. “This is not even a technical argument, really. That’s the reality.”
Luma has been making inroads into Hollywood selling its software but has separately funded a production service company to teach filmmakers to make hybrid AI films using its tools.
Despite conservative production budgets, AI spending by media companies is projected to grow from $2.6 billion to $12.5 billion from 2024 to 2029, according to a State of Generative AI Media report.
Kavan Cardoza flips through pages of his fine-art photography book.
(Kayla Bartkowski/Los Angeles Times)
Bugaj warned that the quality and competitive price of Chinese models should be a “wake-up call” for American players fighting for market share.
“We’re not loyal,” said Zada, the filmmaker. “Whatever is the best, we’re going to use it.”
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