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In the constant hustle and bustle of one of the busiest airports in the United States, a terrifying 90 seconds of quiet had disastrous results. On April 28, the Newark Liberty International Airport (EWR) lost both radar and radio for a minute and a half due to a fried piece of copper wiring, the New York Post reported. This meant that air traffic controllers could not see, hear, or speak to aircraft or pilots around the airport. The event did not lead to any crashes, but it did cause significant stress on employees working at the time; five FAA employees are reportedly taking trauma leave, according to CNN, making them eligible for 45 days to recover from the event. How has the incident impacted flights? Along with a slew of other problems slowing down the airportsuch as the temporary closure of a major runway for repair work and a nearly 30-year low of air controller staffinglast Mondays incident has led to major delays and cancellations for the airport. And these delays and cancellations have continued to persist: According to the flight tracking website FlightAware, Newark airport has seen over 200 delays and 110 cancellations by 12:30 today. What have airlines said about the situation? Scott Kirby, CEO of United Airlines, wrote in a message on Friday that Newark airports technology problems were compounded when over 20% of the FAA controllers for EWR walked off the job, putting further stress on already understaffed systems. Without these controllers, its now clear and the FAA tells us that Newark airport cannot handle the number of planes that are scheduled to operate there in the weeks and months ahead, He wrote. Due to these difficulties, Kirby added, United would cancel 35 round trips per day from Newark beginning this past weekend. It’s disappointing to make further cuts to an already reduced schedule at Newark, but since there is no way to resolve the near-term structural FAA staffing issues, we feel like there is no other choice in order to protect our customers, says Kirby. How long is this chaos going to last? While issues like the runway closure will be resolved in June, the severe lack of air traffic controllers and replacing old equipment is a longer-term problem. According to a report by Axios, the New York City region only had around 65% of its target number of certified air traffic controllers as of September 2023. This is in part because of the relatively narrow window in which people can enter the position. The FAA does not allow anyone to apply to be a controller if they are over the age of 30 and requires all controllers to retire by the age of 56. Additionally, training to become a certified professional controller (CPC) is a long and difficult process spanning 3-4 years and causes around 40% of paid trainees to drop out. In order to boost the numbers of air traffic controllers, Transportation Secretary Sean Duffy said in a press conference on May 1 that the Department of Transportation will roll out incentives such as: A 30% salary increase for new hires A $5,000 bonus for FAA Academy completion Additional resources to help students improve final exam scores Bonuses to controllers nearing retirement age Bonuses to controllers willing to staff less popular locations Were hoping in three to four years we can get to full staffing, not 20 years, Duffy said. Additionally, in a statement on May 5, the FAA said that it is working on speeding up modernization efforts to improve Newark airports technology infrastructure. “We are working to ensure the current telecommunications equipment is more reliable in the New York area by establishing a more resilient and redundant configuration with the local exchange carriers. In addition, we are updating our automation system to improve resiliency,” the agency said. What if I’m flying in or out of Newark? Although the FAA and Department of Transportation are promising improvements for Newark airport, the unfortunate reality is that it will take a long time for travelers to see the results from them. Travelers with flights going through Newark in the coming weeks and months should stay alert and check frequently for possible delays and disruptions and consider backup plans when possible. It also may be a good idea to try to book flights earlier in the day as they are typically less likely to be delayed or canceled. In the case that your flight is cancelled or heavily delayed, the Department of Transportation says that you are entitled to a refund: If an airline cancels a passengers flight or makes a significant change in the flight, regardless of the reason, airlines are required to provide a prompt refund to a ticketed passenger, including those with non-refundable tickets, should the passenger choose not to accept the alternative offered, such as rebooking on another flight.
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E-Commerce
OpenAI was founded as a nonprofit with a mission to build safe artificial general intelligence for the benefit of humanity. For a while, that structure made sense. But in 2019, the company made a discovery that changed everything: Scaling up AI modelswith more data, compute, and parametersled to predictably stronger results. The insight was formalized in a 2020 paper titled “Scaling Laws for Neural Language Models,” and it reshaped OpenAIs trajectory. That same year, the company released GPT-3, a model 100 times larger than GPT-2. Microsoft invested. Venture capitalists piled in. Inside the company, employees began to see Sam Altman as the one who could turn a nonprofit breakthrough into a world-changingand highly profitablebusiness. And yet OpenAI remained a nonprofit company. Seen in that light, yesterdays announcement that OpenAIs for-profit arm will become a public benefit company (PBC) is no big surprise. Under the newly proposed structure, OpenAI will continue operating as a for-profit AI business housed within a nonprofit parent. (Altman said last year he wanted to free the for-profit from the nonprofit parent.) We made the decision for the nonprofit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California, OpenAI board member Bret Taylor said in a blog post Monday. The change is that the for-profit part will now be a public benefit corporation and no longer a capped profit entity. Now theres no limit on how much OpenAI shareholdersincluding investors and employeescan earn. Dropping the capped-profit model was also a condition of OpenAIs last two funding rounds. In the most recent (and largest), lead investor SoftBank stipulated that OpenAI adopt a new corporate structure by the end of 2025. Investors are willing to bet big on OpenAI, but they want the potential for big returns. Altman and others at OpenAI have said that bringing in revenue has become more important with the realization that building progressively better models will require massive investments in infrastructure and computing power. The key worry about Sam Altman is that, under his leadership, the company might prioritize pushing toward superintelligent AI without adequately safety-testing its models or mitigating their risks. The new PBC structure likely wont do much to quiet those concerns. OpenAIs announcement is effectively a commitment to maintain the status quo, with some changes around the margins, Public Citizen co-president Robert Weissman said in a statement Monday night. Under the new arrangement, OpenAI nonprofit will continue to have a controlling interest in the for-profit, now accompanied by some shareholding. Since the nonprofit has done nothing discernible in the past to control or in any way restrain the for-profit, theres no reason to think it will do so in the future.” Elon Musk, an early founder of OpenAI, sued the company for violating its original nonprofit mission to develop human-level AI for the good of humanity. OpenAI says Musk, who owns a competing AI company, is simply trying to slow its progress. Both claims may be correct. OpenAI will continue releasing new models at a rapid clip, and it will keep the technical details of its best models tightly held as trade secrets. The nonprofits board of directors, which once challenged Altmans commitment to safety and even managed to briefly oust him for dishonesty in late 2023, is now filled with people more aligned with the CEOs goals. And the nonprofit board will receive a significant number of shares in the for-profit public benefit corporation. Microsoft will have to sign off on the new structure, but why wouldnt it? Even though OpenAIs relationship with Microsoft isnt as tight or aligned as it once was, Microsoft still stands to benefit from maximizing the financial payoff of the large stake it holds in the AI startup.
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E-Commerce
Target Corp. is pushing back on media reports this week that it has changed its policies around self-checkout technology in response to shoplifting or customer dissatisfaction. A number of news outlets reported over the weekend and yesterday that the retail giant has limited self-checkout registers to 10 items or fewer, but Target made that announcement more than a year ago. “Target is not removing self-checkout,” a spokesperson told Fast Company when reached for comment. “We offer it in the vast majority of our stores and have no plans to change this.” The company declined to share additional details about how theftor “shrink” in industry parlancehas shaped its self-checkout policies. At the time of its original announcement in March 2024, Target said its 10-items-or-fewer rule was based on “guest feedback.” In a fact sheet updated this week, Target said that its transaction times have improved at both human-run and automated checkout lanes since the policy was implemented and that customers typically like having both options. Does self-checkout actually impact inventory “shrink”? Some surveys have indicated that self-checkout options can and do contribute to shoplifting, as highlighted in a research roundup published by Capital One in February. Even as the technology has become commonplace over the last two decades, companies are still trying to strike the right balance between being technology forward and letting technology run roughshod over the customer experienceand sometimes they admittedly veer too far in the latter direction. At the same time, our perception of how bad the problem is might not always match reality: While 69% of respondents to a 2023 LendingTree survey said that they believed self-checkout lanes make it easier to steal, only 15% admitted to actually doing so. Is 15% bad enough to abandon self-checkout in favor of having more human cashiers? That’s up to retailers and their accountants to figure out. In the short term, don’t expect big changes at Target. The company only admits that it will “continue evolving to match guests with the right checkout options so they can get what they need.”
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E-Commerce
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