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Matt Scherer

@matthewus.bsky.social
630 followers 43 following 49 posts

Advocate and researcher focused on fighting corporate power and building workers’ technology rights. Fellow at OMI. Posts reflect my own views.

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Reposted by Matt Scherer
Adam Becker @adambecker.bsky.social · 21/09/2026
Remember, Kevin Roose also wrote "The Latecomer's Guide to Crypto," which was methodically debunked by @molly.wiki and others in this brilliant piece. I don't understand why anyone takes him seriously about anything at this point. He's far too credulous to be a good journalist.
mollywhite.net
The (Edited) Latecomer's Guide to Crypto
A group of cryptocurrency researchers and critics annotate the irresponsible cryptocurrency puff piece that was originally published in the New York Times.
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Reposted by Matt Scherer
Adam Becker @adambecker.bsky.social · 19/09/2026
@aoc.bsky.social just put out a great statement on AI. Refreshing to see a major politician on the left nail this. "Silicon Valley billionaires want us to believe that Al robots will destroy humanity. But the biggest threat to humanity are the tech oligarchs themselves." 🎯
Charles,

Last weekend, Dario Amodei, the CEO of Anthropic, one of the largest Al companies in the world, publicly asked his industry to slow down Al development.

Shortly after, Sam Altman, the CEO of OpenAl, followed suit. Then Elon Musk.

This all came days after an Anthropic researcher quit, citing his belief that this technology could wipe out humanity and that Al companies are "gambling with our lives."

For years, people have warned that generative Al could slip out of our direct control.

Those safety concerns must be taken seriously.

And this is why I have advocated for strict safety standards on how Al is built and deployed, public oversight over this technology, and using existing laws to hold these companies accountable when they cause harm.

But I want to draw your attention to another reality: Right now, the U.S. economy and our financial futures are riding on Silicon Valley's bet that Al will soon be immensely profitable and pay off. And that bet isn't looking good.

The formula for a profitable business isn't complicated: make more money than you spend. But the biggest Al companies aren't doing that. They are spending hundreds of billions per year on data centers, chips, and other costs while their ability to make revenues that exceed their already-immense sunk costs are unclear. Experts estimate that these Al companies will require another $600 billion of debt just to financethemselves in 2026 alone. That is more than the entire budgets of the U.S. Departments of Justice, Transportation, & Education combined.
Meanwhile, despite almost every single one of these companies not turning a profit & having sunk billions of investor dollars in development of data centers & other infrastructure, Al companies are also on a spending spree of hundreds of millions of dollars in lobbying & dark money in our elections.
It would be one thing if we were discussing a few private companies with a poor business model. But last year, virtually all stock market gains - 80% - rested entirely on just a handful of Al companies.
That tells us two things:
1. Nearly the entire U.S. economy outside the Al industry is relatively stagnating and faring poorly & the gains from these few companies are disguising it; &
2. Millions of people's retirements - including their pensions, 401ks, & investments - are potentially exposed to this risk.
That's why these Al companies' dubious financial positions matter to working people.
These companies argue that debt is necessary. They'll tell you that building transformative technologies requires upfront capital, & that massive borrowing today will pay off in generating unprecedented prosperity tomorrow.
But this is not the typical debt that startups take on while they build out a company. We are talking about billions going on trillions of dollars leveraged with no indication that these companies will be able to recoup these funds profitably. And they are increasingly looking to the government as their source of cash.
In an effort to hide their debt, tech companies have been relying on "circular financing" where tech giants like Google, Amazon, & Microsoft give billions to Al startups like OpenAl & Anthropic, only for those startups to hand that money right back to buy Al processing power.
In other words, these Al companies are luring in new investors by making it look like their financials are healthier than they really are.What's even worse is that retirement & pension funds are key to supporting this illusion.
When the Al companies issue bonds to raise more money, your pension funds & retirement accounts are some of the biggest buyers. When Musk's Al business went public, it became part of index funds where millions of Americans invest our savings. Many Americans don't even know that their retirement investments are tied up in these companies at all.
From Big Tech's perspective, that's a feature, not a bug. By tying our futures to their reckless gambling, Al billionaires are trying to make themselves too big to fail. They think they can take such dangerous risks because we will bail them out if things go wrong.
Sound familiar? This scene is dangerously reminiscent of the rampant speculation, corruption, & broken incentives leading up to the 2008 financial crisis that plunged millions of working class Americans into financial chaos that we never fully recovered from.
It is no accident that these warnings from Altman & Amodei come months-if not weeks-before these companies were meant to go public.
When companies go public, they have to be more transparent about how they are doing financially. And after a waiting period, they typically have to let private investors-like their own employees-sell their shares.
The New York Times recently confirmed that OpenAl has postponed going public for this very reason. They are in no rush for the truth about their finances to come out.
But the moment these oligarchs began to seek our public tax dollars & public contracts while exposing their companies to public pension funds & investments, they opened themselves to public accountability & scrutiny.
Silicon Valley billionaires have rigged the game & are attempting to shift their financial risk to working people: If they're right about Al's potential, they reap the profits. If they're wrong & the bubble bursts, they are setting up the American people to pick up the tab.
Heads, they win; tails, we lose.We can stop this, and we shouldn't play their game. Together we can address both the economic and safety threats of unrestricted Al development and prevent financial chaos and stabilize market risk.

We must make it clear now that should the Al bubble pop, Congress should not bail out Big Tech.

And across our federal agencies, we have the authorities and tools to hold Al companies and their leaders accountable for releasing dangerous, unvetted, and defective products. We must not wait.

Silicon Valley billionaires want us to believe that Al robots will destroy humanity.

But the biggest threat to humanity are the tech oligarchs themselves.

It's time we hold them accountable.

Thank you for reading.

In solidarity,

Alexandria
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Carl T. Bergstrom @carlbergstrom.com · 18/09/2026
This is horrifying. Please join me in calling for an immediate return to getting our false intelligence about WMDs from the CIA and other organic sources.
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DreamingAgainstTheMachine @dreamingagainstthemachine.com · 02/09/2026
The AI bubble could produce the worst economic disaster we’ve ever seen. @matthewus.bsky.social with @openmarkets.bsky.social is our guest this week. Listen now. #ai #datmpodcast #future #science #aibubble #stockmarket #crash @multitudeshows.com @adambecker.bsky.social
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Hard Reset @hardresetmedia.com · 20/07/2026
In his latest for Hard Reset, @matthewus.bsky.social asks why is it that, four years after ChatGPT’s release, generative AI has not yet improved productivity at either the level of individual companies or across the economy as a whole? www.hardresetmedia.com/p/the-ai-pro...
hardresetmedia.com
The AI Productivity Illusion
Productivity Is About (Much) More than Finishing Tasks Quickly
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Matt Scherer @matthewus.bsky.social · 20/07/2026
Stop me if you've heard these ones before: "AI has 10Xed my productivity!" "Of course AI increases productivity--I can finish projects in hours that used to take weeks!" Read my latest column for @hardresetmedia.com to find out why such comments miss the point on AI and productivity.
hardresetmedia.com
The AI Productivity Illusion
Productivity Is About (Much) More than Finishing Tasks Quickly
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Reposted by Matt Scherer
Hard Reset @hardresetmedia.com · 06/07/2026
In his first for Hard Reset, @matthewus.bsky.social compares the current AI moment to a little known technology from 75 years ago that was supposed to revolutionize the auto industry: www.hardresetmedia.com/p/are-we-bet...
hardresetmedia.com
Are We Betting the Economy on a Doomed Technology?
If generative AI turns out to be a dud, it could be our economy that goes up in flames.
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Reposted by Matt Scherer
Paris Marx @parismarx.com · 03/06/2026
“Unfortunately, the policymakers best-positioned to sound the alarm are ignoring the rapidly growing AI bubble because they are too distracted by Silicon Valley’s sci-fi-esque prophecies.”
lpeproject.org
The Real AI Threat is the Bubble, not the Apocalypse
The most pressing AI-driven crisis is the overestimation of AI’s capabilities and impacts, which has produced a historically large speculative AI bubble. To safeguard against this economic catastrophe...
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Matt Scherer @matthewus.bsky.social · 30/05/2026
In today's episode of, "I totally get why people are cynical about politics and see conspiracies everywhere." www.axios.com/2026/05/29/a...
axios.com
How AI, crypto and AIPAC are ending political careers
Eight of the 12 biggest outside spenders in House primaries fall into one of those three groups.
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Reposted by Matt Scherer
Emily M. Bender @emilymbender.bsky.social · 29/05/2026
How should we handle it when the AI bubble bursts? On the next MAIHT3k livestream, @matthewus.bsky.social joins me and @alexhanna.bsky.social to discuss how we can avoid bailing out billionaires. Monday, June 1, noon PT twitch.tv/dair_institute
twitch.tv
dair_institute - Twitch
Twitch account for The Distributed AI Research Institute (DAIR).
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The Capitol Forum @capitolforum.bsky.social · 22/05/2026
Next week’s conference calls: May 26: Katie Van Dyck (@openmarkets.bsky.social) on sports media costs & antitrust May 28: Matthew Scherer (@econliberties.bsky.social) on AI spending & bubble risks May 29: Weekly Tech Policy Briefing Series 👉 RSVP: thecapitolforum.com/events/?utm_...
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Matt Scherer @matthewus.bsky.social · 22/05/2026
Check out my new piece for @lpeproject.bsky.social. My argument in a nutshell: Everyone in DC has been AI-pilled and sucked in by Silicon Valley's sci-fi fantasies--even policymakers who normally reject the self-serving narratives that emerge from corporate America. lpeproject.org/blog/the-rea...
lpeproject.org
The Real AI Threat is the Bubble, not the Apocalypse
The most pressing AI-driven crisis is the overestimation of AI’s capabilities and impacts, which has produced a historically large speculative AI bubble. To safeguard against this economic catastrophe...
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Matt Scherer @matthewus.bsky.social · 19/05/2026
And remember, this is what Wall Street execs think of their *own* workers... --------- "At Standard Chartered Plc, CEO Bill Winters said Tuesday he’s replacing 'lower-value human capital' with financial and technology capital to cut 8,000 support roles over the next four years... [1/2]
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Matt Scherer @matthewus.bsky.social · 14/05/2026
Check out my new report with @openmarkets.bsky.social, “No Bailouts for Big Tech Billionaires: Policies for when the AI bubble bursts.” The title gives you a sense of its content. Available in audio/podcast form on Spotify, in addition to text!
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Matt Scherer @matthewus.bsky.social · 15/04/2026
If you want to know why people don’t trust Democrats despite the Trump administration being awful, here you go. The party establishment is literally telling policymakers to ignore their constituents because the important thing is not pissing off wealthy donors. www.ft.com/content/7529...
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Matt Scherer @matthewus.bsky.social · 23/03/2026
Don't you just love the smell of insider trading in the morning? www.cnbc.com/2026/03/23/v...
cnbc.com
Volume in stock and oil futures surged minutes before Trump's market-turning post
The timing of the earlier volume spikes — across both equities and crude — caught the attention of traders.
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Matt Scherer @matthewus.bsky.social · 19/03/2026
It's nice to see it spelled out so explicitly. The only interests most policymakers care about when it comes to tech policy are those of corporations and billionaires. Advocates for consumers and workers aren't even at the table. Legislating is merely an exercise in balancing corporate interests.
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Matt Scherer @matthewus.bsky.social · 12/01/2026
This is a particularly extreme and galling example of what I call the Tyranny of Quantification, where corporate interests argue that policy should be based solely on easy-to-quantify metrics. That inherently favors corporate interests. (1/3)
nytimes.com
E.P.A. to Stop Considering Lives Saved When Setting Rules on Air Pollution
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Matt Scherer @matthewus.bsky.social · 19/10/2025
Everything makes sense now futurism.com/future-socie...
futurism.com
Tech Bros Have Been Accidentally Poisoning Themselves With Severe Brain Toxins for Years
Among the worst offenders was meal-replacement company Huel, a long-time favorite among Bay Area builders.
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Matt Scherer @matthewus.bsky.social · 07/10/2025
Given that genAI clearly enhances productivity in cheating and scamming but has mixed results everywhere else, there's a real possibility that genAI will actually have a net negative effect on profitability as companies are forced to invest ever-more in cybersecurity. www.axios.com/2025/10/07/o...
axios.com
OpenAI's new Sora app and other AI video tools give scams a new edge, experts warn
Fake audio and videos are bound to make scams sound more believable as tools improve.
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Reposted by Matt Scherer
Merriam-Webster @merriam-webster.com · 01/10/2025
We are thrilled to announce that our NEW Large Language Model will be released on 11.18.25.
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Center for Democracy & Technology @cdt.org · 29/09/2025
Why it matters: ADSs shape access to jobs, housing, health care & more. Yet too often, they’re opaque, error-prone, and biased—leaving consumers & workers at risk. Transparency + accountability are essential.
cdt.org
Bringing Transparency and Accountability to Algorithmic Decision Systems
Also authored by Grace Gedye, AI Policy Analyst, Consumer Reports Algorithmic decision systems (ADSs) increasingly determine what jobs people apply to, what apartments they can rent, what health care coverage they receive, and other major determinants of their lives and livelihoods. ADSs can speed up decision-making processes and, with proper design and oversight, can help […]
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Center for Democracy & Technology @cdt.org · 29/09/2025
New brief from CDT’s @matthewus.bsky.social & @consumerreports.org's Grace Gedye examines state efforts to regulate algorithmic decision systems (ADSs)—spotlighting promising proposals, pitfalls, and what effective regulation must include. Read more: cdt.org/insights/bri...
Building Transparency and Accountability.
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Electronic Frontier Foundation @eff.org · 26/09/2025
California’s “No Robo Bosses Act” is a great start. And much more is needed, because many kinds of powerful institutions are using automated decision-making against us. www.eff.org/deeplinks/2...
eff.org
Yes to California’s “No Robo Bosses Act”
California’s Governor should sign S.B. 7, a common-sense bill to end some of the harshest consequences of automated abuse at work. EFF is proud to join dozens of labor, digital rights, and other
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Evan Greer @evangreer.bsky.social · 16/06/2025
The Minnesota shooter apparently used data broker websites to find the home addresses of the people he shot and murdered. Congress has had years to do something about data brokers and they've sided with the tech lobby over and over again. Their inaction is deadly.
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Center for Democracy & Technology @cdt.org · 29/05/2025
“@matthewus.bsky.social, senior policy counsel at CDT, has a more dire warning: ‘The moratorium [on state-level AI legislation] is so sweeping that it’s hard to imagine how any law that touches on AI or automated decision-making in any way could escape it.’" www.pcmag.com/news/t...
pcmag.com
There's a Lot of AI in Trump's 'Big Beautiful Bill': Here's What It Does and Why Elon Is Not a Fan
Among the more eye-catching provisions is a 10-year moratorium on state-level AI regulations. Though xAI stands to benefit, Elon Musk says the spending bill is 'undermining' DOGE.
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Matt Scherer @matthewus.bsky.social · 28/05/2025
You know you've got a serious, serious brand issue when your main competitor is 11 points underwater in favorability but you're doing 10 points *worse* than they are. thehill.com/homenews/cam...
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Matt Scherer @matthewus.bsky.social · 18/05/2025
It's obvious that all big LLMs have plateaued. Improvements are X steps forward/Y steps back, with X fast decreasing and Y increasing. None are close to AGI; tweaks/scaling won't get them there. The only reason none of the big developers are saying so is no one wants to be first to admit to the con.
link.axios.com
Exclusive | Meta Is Delaying the Rollout of Its Flagship AI Model
The company’s struggle to improve the capabilities of latest AI model mirrors issues at some top AI companies.
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Matt Scherer @matthewus.bsky.social · 10/05/2025
This is seriously great. There has been a vacuum of moral leadership when it comes to the impact of AI on workers and their dignity. And there are a few (if any) people with a bigger moral megaphone than the Pontiff. www.cnbc.com/2025/05/10/p...
cnbc.com
Why Pope Leo chose his name: AI, workers’ rights, new Industrial Revolution
Pope Leo also suggested that he would follow the late Pope Francis' lead on his commitment to social justice.
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Center for Democracy & Technology @cdt.org · 08/05/2025
Colorado lawmakers stood firm on AI accountability — and CDT CEO @alexreevegivens.bsky.social backed their decision to protect workers and consumers rather than gut hard-won safeguards. www.denverpost.com/2...
denverpost.com
Live updates: Officials react to killed AI bill, hospitals-pharma fight nears end, immigrant protections finalized
With less than three days left until the Colorado legislature adjourns its regular session, lawmakers are back Monday to move several contentious bills through key votes.
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Matt Scherer @matthewus.bsky.social · 08/05/2025
The tech industry only ever has two positions on any proposed tech regulation: (1) Don’t regulate us. It’s too early. Our tech is still developing. (2) Don’t regulate us. It’s too late. Our tech is everywhere.
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Matt Scherer @matthewus.bsky.social · 29/04/2025
Tech companies are talking about the need to protect the welfare and rights of the AI models they are creating...while at the same time pushing back against any meaningful legislation to protect the welfare and rights of actual humans affected by their AI models. www.axios.com/2025/04/29/a...
axios.com
Anthropic sparks debate over AI rights
Skeptics say we're a long way from conscious LLMs.
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Center for Democracy & Technology @cdt.org · 24/04/2025
CDT’s @matthewus.bsky.social co-authored an op-ed with Ed Hawthorne & Amanda Ballantyne in the Ridgefield Press on a Connecticut bill that regulates “bossware” – software that tracks, evaluates, and makes decisions about workers. www.theridgefieldpre...
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Center for Democracy & Technology @cdt.org · 10/12/2024
CDT's @matthewus.bsky.social in IAPP on how policy is addressing #AI-driven hiring practices. iapp.org/news/a/how-...
iapp.org
How the US is handling AI-driven hiring practices
As artificial intelligence use increases and applies more to traditionally human responsibilities in hiring processes, the concerns about mistakes or bias are also rising.
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Center for Democracy & Technology @cdt.org · 06/12/2024
Today, we celebrate 30 years of advancing technology and democratic values. Founded on December 6, 1994, CDT has long been at the forefront of shaping tech policy and design to protect rights, promote innovation, and ensure equity. 🎉
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EPIC @epic.org · 27/11/2024
"Water is wet. Dog bites man. Corporate interests attack consumer protections," EPIC Director of Litigation @johndavisson.bsky.social said today. "[T]he truth is that the CFPB is one of the most effective champions for the public interest anywhere in government." 1/2 epic.org/epic-stateme...
epic.org
EPIC Statement on Recent Attacks Against the CFPB
<p>“Water is wet. Dog bites man. Corporate interests attack consumer protections. Despite the tired smears recycled by critics today, the truth is that the CFPB is one of the most effective champions ...
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Matt Scherer @matthewus.bsky.social · 22/11/2024
Everyone deserves to have a passion as deep, intense, and long-lasting as Hubie Brown's passion for basketball. www.nytimes.com/athletic/593...
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Matt Scherer @matthewus.bsky.social · 20/11/2024
Check out CDT’s latest report, led by @mluria.bsky.social and also starring @arianaaboulafia.bsky.social and me, on disabled workers’ experiences with gamified hiring tests, AI scored video interviews, and other modern digitized employment assessments.
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Center for Democracy & Technology @cdt.org · 23/05/2024
MUST READ: CDT's Matt Scherer pens new blog unpacking Colorado's new AI legislation, highlighting the areas where it needs to be strengthened, & pushing back against arguments suggesting that the bill is too burdensome or complex for businesses. cdt.org/insights/col...
cdt.org
Colorado’s Artificial Intelligence Act is a Step in the Right Direction. It Must be Strengthened, Not Weakened.
3. What Happens Nextnot-burden-small-businesses">SB 205 does not impose complex or unusual obligations and will not burden small businessesights laws-do" class="toc-anchor">2. What SB 205 Doesn’t Dousing-ai-systems-that-can-alter-the-course-of-consumers-lives-and-careers">SB 205 requires companies to do simple due diligence before marketing or using AI systems that can alter the course of consumers’ lives and careers-anchor">SB 205 ensures consumers receive basic but […]
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Center for Democracy & Technology @cdt.org · 29/02/2024
The letter urges the #CPPA to ensure its rules protect #WorkersRights and dignity, provide #transparency regarding employers' use of automated decision making, and give workers the same agency as consumers with respect to their data.
cdt.org
CDT Joins UC Berkeley Labor Center and Others in Letter to CPPA Urging Strong Workers' Rights and Transparency in Upcoming Rules on Automated Decisionmaking Technologies
The Center for Democracy & Technology (CDT) joined 34 labor, civil rights, and civil society organizations in comments to the California Privacy Protection Agency (CPPA) regarding its forthcoming rule...
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Center for Democracy & Technology @cdt.org · 29/02/2024
CDT joined a broad coalition of #Labor, #CivilRights, and #CivilSociety organizations in comments to CPPA regarding its forthcoming rules on Automated Decision Making Technologies and Risk Assessments.
cdt.org
CDT Joins UC Berkeley Labor Center and Others in Letter to CPPA Urging Strong Workers' Rights and Transparency in Upcoming Rules on Automated Decisionmaking Technologies
The Center for Democracy & Technology (CDT) joined 34 labor, civil rights, and civil society organizations in comments to the California Privacy Protection Agency (CPPA) regarding its forthcoming rule...
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Electronic Frontier Foundation @eff.org · 17/02/2024
Don’t give in to privacy nihilism. Instead, share and celebrate the ways we’re winning.
eff.org
Privacy Isn't Dead. Far From It.
Welcome! The fact that you’re reading this means that you probably care deeply about the issue of privacy, which warms our hearts. Unfortunately, even though you care about privacy, or perhaps
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Center for Democracy & Technology @cdt.org · 25/01/2024
@cendemtech.bsky.social 's Senior Policy Analyst Tim Harper recently talked to @foreignpolicy.com about China’s use of #GenerativeAI in spreading #misinformation and #disinformation in Taiwan’s recent presidential election.
foreignpolicy.com
How China Exploited Taiwan’s Election—and What It Could Do Next
Beijing has long used its backyard as a testing ground for foreign influence operations.
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