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An anonymous reader shares a report: After last week's major AWS outage took Signal along with it, Elon Musk was quick to criticize the encrypted messaging app's reliance on big tech. But Signal president Meredith Whittaker argues that the company didn't have any other choice but to use AWS or another major cloud provider. "The problem here is not that Signal 'chose' to run on AWS," Whittaker writes in a series of posts on Bluesky. "The problem is the concentration of power in the infrastructure space that means there isn't really another choice: the entire stack, practically speaking, is owned by 3-4 players." In the thread, Whittaker says the number of people who didn't realize Signal uses AWS is "concerning," as it indicates they aren't aware of just how concentrated the cloud infrastructure industry is. "The question isn't 'why does Signal use AWS?'" Whittaker writes. "It's to look at the infrastructural requirements of any global, real-time, mass comms platform and ask how it is that we got to a place where there's no realistic alternative to AWS and the other hyperscalers."

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Chegg says it will lay off about 45% of its workforce, or 388 employees, as the "new realities" of artificial intelligence and diminished traffic from internet search have led to plummeting revenue. From a report: The online education company, founded 20 years ago, has been hit by the rise of generative AI software tools, such as OpenAI's ChatGPT, which have become increasingly popular among students. Chegg also sued Google in February, arguing that AI summaries of search results have hurt its traffic and sales. The company reiterated that claim on Monday, saying AI and "reduced traffic from Google to content publishers" have damaged its business. "As a result, and reflecting the company's continued investment in AI, Chegg is restructuring the way it operates its academic learning products," the company said. The cuts come after Chegg in May laid off 22% of its workforce, citing increasing adoption of AI. Chegg's market cap has fallen 98.8% in recent years to about $135 million.

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An anonymous reader shares a report: More than half of the grades handed out at Harvard College are A's, an increase from decades past even as school officials have sounded the alarm for years about rampant grade inflation. About 60% of the grades handed out in classes for the university's undergraduate program are A's, up from 40% a decade ago and less than a quarter 20 years ago, according to a report released Monday by Harvard's Office of Undergraduate Education. Other elite universities, including competing Ivy League schools, have also been struggling to rein in grade inflation. The report's author, Harvard undergraduate dean Amanda Claybaugh, urged faculty to curtail the practice of awarding top scores to the majority of students, saying it undermines academic culture. "Current practices are not only failing to perform the key functions of grading; they are also damaging the academic culture of the college more generally," she said in the report.

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Microsoft and OpenAI have finalized a new agreement that removes uncertainty for investors and clears the path for OpenAI to restructure as a for-profit business. Microsoft receives a 27% ownership stake in OpenAI worth approximately $135 billion and retains access to the AI startup's technology until 2032, including models that achieve AGI. OpenAI completed its recapitalization, simplifying its corporate structure while keeping the nonprofit in control of the for-profit entity. The OpenAI Foundation receives an equity stake worth roughly $130 billion and plans to initially focus on funding work to accelerate health breakthroughs. Microsoft backed OpenAI with $13.75 billion and was the biggest holdout among investors during negotiations. Once OpenAI achieves AGI, verified by an independent expert panel, Microsoft will no longer receive a cut of OpenAI's revenue. Microsoft also loses its right of first refusal on new cloud infrastructure business from OpenAI, though OpenAI commits an additional $250 billion to Azure.

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