Google's Star Engineer Is Now Its Enemy Number One

February 24, 2017

Feb 24: In 2013, Anthony Levandowski was the star of Google's self-driving car project. The tall, swaggering engineer was featured in a long New Yorker story about the search engine willing the impossible technology into reality.

EngineerLess than four years later, he is Google's enemy number one.

On Thursday, Waymo, the Alphabet Inc. company formed from Google's self-driving project, filed a blistering lawsuit accusing Levandowski of taking incredibly valuable intellectual property from Alphabet to his current company, Uber Technologies Inc.

Waymo's lawsuit hinges on a series of alleged moves from Levandowski in the days leading up to his departure from Alphabet in January 2016. His web searches, downloads and access to an external drive left behind digital footprints. When exposed, they were closely scrutinized by his former employer --which is now citing them as central to its lawsuit, a rare intellectual property claim from Alphabet.

The legal case also deepens a growing rift between the two companies, which are becoming bitter rivals in mapping, autonomous vehicles and -- potentially -- Uber's core business of ride-hailing services.

At the center of it all is the six foot seven Levandowski

The prodigious engineer has spent much of his career chasing a dream of placing robotic cars on the road. While at the University of California at Berkeley, he entered a self-driving motorcycle in the 2004 DARPA Grand Challenge, a historic event for the young field.

He also started 510 Systems, a robotics firm building lasers for autonomous vehicles. The startup once ran a stunt with a self-driving pizza car. Levandowski started at Google in 2007, working on its Street View unit, where he played an instrumental role in building its mapping hardware to fit on cars.

After being recruited to its secretive car project, he continued to work on 510 Systems, according to two people familiar with the situation. Google eventually acquired the startup as it pushed deeper into self-driving technology.

Years later, Waymo would detail how Levandowski had secretly plotted his next startup, Otto, while also working for Google. Uber acquired Otto in August for $680 million.

According to Waymo's suit, Levandowski installed "specialized software" on his corporate laptop, in December 2015, loading it with 14,000 confidential files about lidar technology, vital to autonomous driving. "Levandowski took extraordinary efforts to raid Waymo's design server and then conceal his activities," the suit reads.

In January of last year, he began telling Alphabet colleagues about plans to "replicate" its technology at a competitor. The suit says he visited Uber's San Francisco headquarters on January 14, 2016 and the next day he formed a company that would become Otto.

Less than two weeks later, he resigned from Alphabet without notice.

Alphabet's lawsuit comes after a wave of significant departures from its car unit, which has still not delivered a commercial service despite years of work.

Some workers may have had additional impetus to leave. At the onset of its car project, Google set up a pay system that would reward early employees greatly upon departure, as Bloomberg News reported earlier. "Notably," Waymo's lawsuit reads, "Otto announced the acquisition [by Uber] shortly after Mr. Levandowski received his final multi-million dollar compensation payment from Google."

Levandowski was among the first to exit.

In a statement, Uber said: "We take the allegations made against Otto and Uber employees seriously and we will review this matter carefully." Levandowski didn't respond to phone calls seeking comment. "We did not steal any Google IP,'' Levandowski told Forbes last year in comments that were republished Thursday. Just want to make sure, super clear on that. We built everything from scratch and we have all of the logs to make that-just to be super clear.''Uber placed him atop their nascent autonomous vehicle efforts in July. The next month the company unveiled plans to bring self-driving cars to Pittsburgh.Waymo's suit caps a horrendous week for Uber, which is reeling from damning public charges of sexual harassment in its ranks. The company's culture has been slammed and Eric Holder, a former U.S. attorney general, has been hired to investigate.Former Google colleagues described Levandowski as "very driven," with a personality similar to Uber Chief Executive Officer Travis Kalanick.That's a comparison Kalanick made himself when he announced the acquisition of Otto."I feel like we're brothers from another mother," he said at the time.

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Agencies
June 10,2020

US dictionary Merriam-Webster will update the meaning of the word "racism" after being contacted by a Missouri black woman, who claimed the current definition fell short of including the systematic oppression of people of colour, according to media reports.

"A revision to the entry for racism is now being drafted to be added to the dictionary soon, and we are also planning to revise the entries of other words that are related to racism or have racial connotations," according to a statement of the 189-year-old dictionary shared by Kennedy Mitchum, a recent graduate of Drake University in Iowa, on her Facebook.

Mitchum, 22, emailed the dictionary last month, following the death of African American George Floyd in the custody of four Minneapolis police officers, Xinhua news agency reported.

"I kept having to tell them that definition is not representative of what is actually happening in the world," Mitchum told CNN. "The way that racism occurs in real life is not just prejudice, it's the systemic racism that is happening for a lot of black Americans."

Merriam-Webster's first definition of racism is "a belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race."

"It's not just disliking someone because of their race," Mitchum wrote in a Facebook post on Friday. "This current fight we are in is evidence of that, lives are at stake because of the systems of oppression that go hand-in-hand with racism."

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Agencies
July 6,2020

The Covid-19 pandemic has made an unprecedented impact on the Indian businesses, particularly small and medium enterprises (SMEs) and startups. According to a joint survey by FICCI and Indian Angel Network (IAN), the pandemic has hit the businesses of around 70% startups.

With uncertainty in the business environment and an unexpected shift in priorities of the government as well as corporates, many startups are struggling to survive, it says.

In a nationwide survey on the 'Impact of Covid-19 on Indian Startups' involving 250 startups, 70% participants said their businesses had been impacted by Covid-19 and around 12% had shut operations.

The survey shows only 22% startups have cash reserves to meet the fixed cost expenses over the next 3-6 months, and 68% are reducing operational and administrative expenses.

Around 30% of the companies said they would retrench employees if the lockdown was extended too long. The 43% startups have already started 20-40% salary cuts over April-June.

Over 33% startups said investors had put the investment decision on hold and 10% said the deals had been scrapped. Only 8% startups had received funds as per the deals signed before Covid-19 outbreak, the survey revealed.

The reduced funding has forced startups to put a hold on business development and manufacturing activities, which has resulted in loss of projected orders.

The survey highlights the need of an urgent relief package for startups, including possible purchase orders from the government, tax relief and swifter tax refunds, and immediate fiscal support measures, including grants, soft loans and payroll grants.

Besides 250 startups, 61 incubators and investors also participated in the survey.

While 96% of investors accepted that their investments in startups had been impacted by Covid-19, 92% said their investments in startups would continue to be low over the next six months.

Around 59% investors said they would prefer to work with the existing portfolio firms in the coming months. Only 41% said they would consider new deals.

"A comparison of priority investment sectors before and during Covid-19 shows 35% investors are now looking at investments in healthcare startups, followed by EdTech, AI/Deep Tech, FinTech and Agri," said the survey.

Around 44% incubators surveyed said their day-to-day operations had been considerably hit by Covid-19. Most incubators are now supporting their portfolio firms by providing them virtual platforms to interact with mentors, investors and industries.

Dilip Chenoy, FICCI Secretary General, said, "The startup sector is stressed for survival at the moment. The investment sentiment is also subdued and is expected to remain so in the coming months. Lack of working capital and cash flows may lead to major layoffs over the next 3-6 months."

Indian startups needed an enabling ecosystem and flow of funds to continue operations, the survey said.

Padmaja Ruparel, President, Indian Angel Network & Co-Chair of FICCI Startup Committee, said, "In these uncertain times, as investors, we must play an important role to provide the Indian startups funding, mentoring and hand-holding support to stay afloat and come out at the other end of this crisis."

To that end, IAN recently announced a debt fund to help IAN portfolio companies raise working capital and ensure business continuity by partnering with debt providers.

This must be replicated on a wider scale, so a larger number of startups are provided the capital support to make it during these tough times, Ruparel said.

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News Network
February 5,2020

Feb 5: Tesla is making Elon Musk a lot richer without paying him a dime.

A blistering stock rally has bolstered the value of CEO Musk's 19% stake in the electric car maker by $16 billion since the start of 2020, to $30 billion.

Tuesday's steep climb in the share price could sweeten Musk's payday under his record-breaking compensation package, which is built on stock options that rely on market value targets. Two milestones have now been achieved that could see Musk unlock options worth $1.8 billion.

The controversial chief executive, who is also the majority owner and CEO of rocket maker SpaceX, recently testified that he did not have a lot of cash as he successfully defended himself in a defamation lawsuit. He previously has taken loans using his Tesla shares as collateral.

Musk does not take a salary, choosing instead a risky options package that envisions the stock market value of Tesla rising to $650 billion over 10 years, a prospect that was derided by some investors when the deal was announced in 2018.

That target now looks less crazy. Shares of Tesla have rallied over 50% since the company posted its second consecutive quarterly profit last Wednesday, which was viewed as a major accomplishment for a company competing against established automotive heavyweights including General Motors Co  and BMW.

Tesla shares have climbed about 400% since early June, helped by the company's better-than-expected financial results and ramped-up production at its new car factory in Shanghai.

On Tuesday, Tesla surged as much as 24% before falling back in the final minutes of the trading session to end the day up 13.7%. That put its market capitalization at $160 billion, almost twice the combined value of Ford Motor and General Motors.

The shares had also rallied on Monday, partly fueled by Panasonic Corp's 6752.T saying its automotive battery venture with Tesla was profitable for the first time.

The options Musk was awarded in 2018 vest incrementally based on targets for Tesla's stock market value and its financial performance. The market capitalization would have to sustainably rise by $50 billion increments over the agreement's 10-year period, with the full package payout reached if the market cap reaches $650 billion, as well as the company's meeting revenue and profit targets.

Musk is on his way to seeing his first two tranches of options vest. He achieved operational targets on revenue and adjusted earnings last year.

The rise in Tesla's market capitalization last month to a target of $100 billion opened the way for Musk's first tranche of options to vest. With Tuesday's surging share price, the market capitalization blew past the second target of $150 billion, opening the way for the second tranche to vest. Tesla's market capitalization must stay at or above each target level for one- and six-month averages for each set of options to vest.

Tesla was valued at about $52 billion when shareholders approved the pay package in March 2018, a time when the company faced a cash crunch, production delays and increasing competition from rivals.

A full payoff for Musk would surpass anything previously granted to U.S. executives, according to Institutional Shareholder Services, a proxy advisor that recommended investors reject the pay package deal at the time.

Musk currently owns about 34 million Tesla shares, and his compensation package would let him buy another 20.3 million shares if all his options tranches vest.

When Tesla unveiled Musk’s package, it said he could in theory reap as much as $55.8 billion if no new shares were issued. However, Tesla has since awarded stock to employees and last year sold $2.7 billion in shares and convertible bonds, diluting the value of the stock.

Musk has transformed Tesla from a niche car maker with production problems into the global leader in electric vehicles, with U.S. and Chinese factories. So far it has stayed ahead of more established rivals including BMW and Volkswagen.

Many investors remain skeptical that Tesla can consistently deliver profit, cash flow and growth. More Wall Street analysts rate Tesla "sell" than "buy," and the company's stock is the most shorted on Wall Street.

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