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Clubhouse, Elon Musk's Buzzy Hangout, Drives Billions To Chinese Startup – NDTV Profit

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Clubhouse has in just two months become the venue of choice for luminaries like Elon Musk or Drake to expound on everything from telepathic monkeys to stock market valuations. But the real winner of the audio-chat app’s stratospheric rise is a loss-making Shanghai startup called Agora Inc.

Agora, known mostly within tech circles as an industrious but low-profile provider of software tools, has soared more than 150% since mid-January when online chatter began to circulate about how it powers the world’s hottest new social media forum. That’s because the little-known company — now worth almost $10 billion — provides developers with all they need to build real-time voice and video functions within applications: a template known as a software development kit.

Agora — ancient Greek for a forum or market — has been linked publicly since its IPO last summer to Clubhouse, though it remains unclear the extent to which the red-hot social media forum employed its software kit. Decompiling the Clubhouse app reveals Agora’s name in the code, meaning Clubhouse is using at least part of the Chinese firm’s SDK, according to two engineers familiar with the matter, who asked not to be named because taking software code apart violates Apple’s iOS user policies.

Clubhouse’s co-founders, Paul Davison and Rohan Seth, have said in conversations on the app that they use Agora, according to two people who heard those discussions but asked not to be named because Clubhouse doesn’t talk publicly about its tech stack. And in an experiment this week, German software engineer Andreas Lehr told Bloomberg News he analyzed traffic coming out of his phone while connected to Clubhouse and noticed several calls out to agora.io.

Beyond just powering Agora’s stock price however, that amorphous link is beginning to spur concerns about the security of the app. It’s the same vague fear that attaches itself to the largest of companies from TikTok-owner ByteDance Ltd. to unheard-of outfits: that Beijing has the power to not just demand they hand over data at will, but also compel Chinese companies to spy on its behalf. Agora declined to comment on its relationship with Clubhouse but said in a statement it takes privacy and security seriously.

“Just like in the case of Zoom, Agora still runs its centralized service in different jurisdictions,” said Suji Yan, the founder and chief executive officer of data privacy startup Mask Network, which builds a tool for users to post encrypted messages on Twitter and Facebook. “It’s hard for a public corporation like Agora not to respond to a local government’s request.”

The debate around the extent of Agora’s involvement comes even as Beijing appears to move against Clubhouse. Many of the app’s users in China say they’ve been unable to access the service since Monday, after an explosion of discussions over the weekend on taboo topics from Taiwan to Xinjiang.

But it’s the potential for surveillance that worries international users. Chinese law requires its companies to hand over information on request and even gather data on behalf of Beijing, if it’s deemed in the interests of national security. That, along with accusations from U.S. lawmakers that Chinese firms can build backdoors into devices and software for the Communist Party can exploit, is at the heart of a growing hostility toward China’s largest tech providers.

Agora’s own customizable tools run on users’ devices as part of client applications like Clubhouse. Agora co-founder Tony Wang has told media the company doesn’t store any end-user data but serves as a “pass-over.” But from a technical perspective, it does get ahold of real-time voice data that it helps transmit on Clubhouse. It won’t be able to cross-identify that with users’ mobile numbers — which in turn unearths their real-world identities — because such data is managed by Clubhouse itself, according to the two engineers familiar with the matter.

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In theory, Chinese operatives can cross-check Agora’s voice data against other voice data that does link up with real IDs — for example, those from state-owned Chinese telecom operators — as a way to identify activists or dissidents, said Mask Network’s Yan.

“Right now I don’t think the government would have the computing power to do so, but you can’t rule out that possibility for the future,” Yan said. “And the cross-reference of voice data bound to the same cell number will leak more data and cause more potential problems than we thought.”

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Started in 2013 by software engineer Tony Zhao, Agora has grown to become one of China’s largest providers of real-time communications technology, powering big names like teaching services provider New Oriental Education & Technology Group and dating app operator The Meeting Group. It’s attracted investment from venture capital firms including SIG, Coatue Management and China’s Morningside, which is also one of the earliest backers of short-video app Kuaishou Technology.

Revenue grew 81% to $30.8 million for the September quarter, when companies outside China contributed more than 20% of sales, executives told analysts during a post-earnings call in November.

Agora itself highlighted China’s complex internet regulatory regime as a risk factor in its IPO prospectus, adding it may be required to take further steps to comply with the European Union’s GDPR privacy laws or regulations elsewhere. It currently offer products in more than 100 countries.

Still, speculation about Clubhouse’s Chinese roots hasn’t hurt its global popularity for now, nor has Beijing’s actions.

“The Chinese-language discussions I heard over the last week were remarkable in that they touched on issues that are heavily censored in China, while allowing open discussion across the Chinese border,” said Graham Webster of the Stanford University Cyber Policy Center.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Ottawa orders TikTok’s Canadian arm to be dissolved

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The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Here is how to prepare your online accounts for when you die

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

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It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

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Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Google’s partnership with AI startup Anthropic faces a UK competition investigation

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LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

The Canadian Press. All rights reserved.

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