How This A.I. Company Collapsed Amid Silicon Valley’s Biggest Boom

Builder.ai went from a value of $1.5 billion to zero in a few months, amid questions over the sales of an A.I. product. Its downfall hints at a broader downturn.

David Streitfeld | NYTimes Technology | Disclosure

Google Pixel 10 Pro Review: This A.I. Phone Can Save Time if You Surrender Your Data

The new artificially intelligent Pixel can help people streamline certain tasks. But that efficiency may not be worth the data you give up, our reviewer writes.

Brian X. Chen and Poppy Lynch | NYTimes Technology | Disclosure

Fine-Tune Your Feed and Get News You Can Use

Apps from Google, Apple and other companies let you customize your content so you’re always up to date on the matters you care about most.

J. D. Biersdorfer | NYTimes Technology | Disclosure

We Are Tech Privacy Reporters. Our Music Habits Got Doxxed.

The “Panama Playlists” exposed the Spotify listening habits of some famous people — and two journalists who didn’t know as much about protecting their privacy as they had thought.

Mike Isaac and Kashmir Hill | NYTimes Technology | Disclosure

Apple Fitness Chief Accused of Toxic Workplace Culture and Harassment

From Nike Veteran to Apple Watch Creator

Jay Blahnik's journey to Apple began as a fitness industry superstar. With nearly two decades of experience at Nike and his own published fitness book, Blahnik brought impressive credentials when Apple recruited him in 2013 to help develop what would become one of the company's most successful products: the Apple Watch.

The Rise of "Close Your Rings": Apple's Fitness Revolution

Blahnik, now 57, quickly became the architect behind the Apple Watch's most recognizable fitness feature. His innovative concept of three circular activity rings—designed to track daily exercise, standing, and calorie-burning goals—transformed how millions of users approached fitness tracking. Marketed under the compelling tagline "Close Your Rings," this simple yet effective visualization helped drive Apple Watch sales and established the company's first major breakthrough product following Steve Jobs's death.

The fitness rings feature became more than just a tracking tool; it created a cultural phenomenon that motivated users worldwide to stay active and achieve daily fitness goals. This innovation solidified Blahnik's position as Apple's Vice President of Fitness Technologies, where he now oversees approximately 100 employees.

Allegations of Toxic Leadership and Workplace Harassment

However, beneath the success story lies a troubling pattern of alleged workplace misconduct. Nine current and former Apple employees who worked directly with or under Blahnik have come forward with serious allegations about his leadership style and behavior, speaking anonymously about sensitive personnel matters.

Documented Pattern of Problematic Behavior

According to these employees, Blahnik's management approach has been characterized by:

• Verbal abuse: Multiple reports of aggressive and inappropriate verbal conduct toward team members
• Manipulative behavior: Allegations of using position and influence to control and intimidate staff
• Inappropriate workplace conduct: Various instances of behavior deemed unprofessional and harmful to the work environment

Mental Health Impact on Apple Fitness Team

The alleged toxic work environment has reportedly taken a severe toll on employee wellbeing. Sources indicate that more than 10 workers—approximately 10% of Blahnik's entire team—have sought extended mental health or medical leaves of absence since 2022. This unusually high percentage suggests systemic workplace issues within Apple's fitness technologies division.

Apple's Response and Internal Investigation

When confronted with allegations against Blahnik, Apple's handling of the situation has drawn criticism. Despite the serious nature of the accusations, the company has prioritized protecting the executive over addressing employee concerns.

Settlement and Ongoing Legal Battles

Apple's response to the allegations includes:

• Sexual harassment settlement: The company quietly settled at least one complaint alleging sexual harassment by Blahnik
• Internal investigation: Apple conducted an internal review that reportedly found "no evidence of wrongdoing"
• Continued employment: Blahnik remains in his leadership position despite the allegations and their impact on his team

The Mandana Mofidi Lawsuit

The most public challenge to Apple's handling of the situation comes from Mandana Mofidi, a former employee who filed a lawsuit in Los Angeles County Superior Court. Mofidi's legal action, filed against both Blahnik and Apple, alleges that the executive engaged in bullying behavior that created a hostile work environment.

Apple is actively fighting Mofidi's lawsuit, maintaining its position that the internal investigation cleared Blahnik of wrongdoing. However, the case raises questions about Apple's commitment to workplace safety and employee protection.

Industry Impact and Corporate Culture Questions

Apple's Workplace Culture Under Scrutiny

These allegations against a high-profile Apple executive highlight broader questions about corporate culture at one of the world's most valuable companies. The situation raises concerns about:

• How Apple handles internal complaints about senior executives
• The effectiveness of the company's HR processes and investigations
• Whether Apple's culture adequately protects employees from powerful figures
• The balance between protecting valuable executives and ensuring workplace safety

Implications for Apple Fitness+ and Health Initiatives

Blahnik's leadership extends beyond hardware development to Apple's broader health and fitness ecosystem, including Apple Fitness+, the company's subscription workout service. The controversy surrounding the fitness chief could potentially impact:

• Team morale and productivity within the fitness technologies division
• Development of future health and fitness features
• Apple's reputation in the competitive wearable technology market
• Consumer trust in Apple's commitment to employee welfare

The Broader Context of Tech Industry Workplace Issues

The allegations against Blahnik occur within the broader context of increased scrutiny of workplace culture in the technology industry. Major tech companies have faced numerous high-profile cases involving executive misconduct, toxic work environments, and inadequate responses to employee complaints.

Comparison to Industry Standards

Apple's handling of the Blahnik situation can be evaluated against how other major technology companies have addressed similar allegations. The case raises questions about whether Apple's approach aligns with industry best practices for:

• Conducting thorough and impartial investigations
• Protecting whistleblowers and complainants
• Taking appropriate action when misconduct is alleged
• Maintaining transparent communication about workplace issues

Looking Forward: Implications and Potential Outcomes

Potential Consequences for Apple

The ongoing controversy surrounding Jay Blahnik could have several implications for Apple:

• Legal exposure: Additional lawsuits from other affected employees
• Regulatory scrutiny: Increased attention from workplace safety regulators
• Reputation damage: Negative impact on Apple's employer brand and public image
• Talent retention: Difficulty attracting and retaining top talent in fitness technology

Questions About Leadership Accountability

The situation raises fundamental questions about executive accountability at Apple and whether the company's success justifies protecting problematic leaders. As the legal proceedings continue and more details potentially emerge, Apple may face increased pressure to reconsider its approach to handling serious workplace allegations.

Conclusion: A Test for Apple's Values

The allegations against Jay Blahnik represent more than just a personnel issue—they constitute a test of Apple's commitment to the workplace values and employee protection standards the company publicly espouses. While Blahnik's contributions to Apple Watch's success are undeniable, the serious nature of the allegations and their impact on employee wellbeing raise questions about whether talent and innovation can justify overlooking problematic leadership behavior.

As the legal proceedings continue and industry scrutiny intensifies, Apple's handling of this situation will likely influence how the company addresses future workplace issues and may set precedents for executive accountability in the technology sector. The outcome of this controversy could have lasting implications for both Apple's corporate culture and the broader tech industry's approach to workplace safety and employee protection.

Tripp Mickle | NYTimes Technology | Disclosure

Mark Zuckerberg Plans to Shake Up Meta’s A.I. Efforts, Again

Meta is expected to announce a new restructuring of its artificial intelligence division amid internal tensions over the technology, people with knowledge of the plans said.

Mike Isaac and Eli Tan | NYTimes Technology | Disclosure

SpaceX Gets Billions From the Government. It Gives Little to Nothing Back in Taxes.

Elon Musk’s rocket company relies on federal contracts, but years of losses have most likely let it avoid paying federal income taxes, according to internal company documents.

Susanne Craig and Kirsten Grind | NYTimes Technology | Disclosure

Blood Oxygen Measurements to Return to Some Apple Watches

The company said it will issue a software update to restart the technology, which was caught up in a patent dispute.

Apple Watch Blood Oxygen Feature Returns Through Software Update

Apple announced it will release a critical software update to restore blood oxygen monitoring capabilities on Apple Watch Series 9, Series 10, and Ultra 2 models. The iOS 18.6.1 update officially brings back the popular health tracking feature that was previously disabled due to an ongoing patent dispute with medical technology company Masimo.

Patent Dispute Resolution Enables Feature Restoration

The blood oxygen sensor technology became unavailable on new Apple Watch models sold in the United States after Masimo successfully challenged Apple's patents through the International Trade Commission (ITC). This legal battle forced Apple to temporarily remove the SpO2 measurement functionality from affected devices to comply with import restrictions.

Which Apple Watch Models Get Blood Oxygen Back?

The software update specifically targets:

• Apple Watch Series 9

• Apple Watch Series 10

Tripp Mickle | NYTimes Technology | Disclosure

A.I. Start-Up Perplexity Offers to Buy Google’s Chrome Browser for $34.5 Billion

The tiny start-up hopes to take advantage of an upcoming antitrust ruling against the tech giant.

In a stunning development that has sent shockwaves through the technology industry, artificial intelligence startup Perplexity AI has made an unsolicited $34.5 billion cash offer to acquire Google's Chrome browser. This ambitious bid represents one of the most significant acquisition attempts in recent tech history, strategically timed to coincide with mounting antitrust pressure on Google.

The Antitrust Catalyst: DOJ's Chrome Divestiture Demand

The timing of Perplexity's offer is no coincidence. The bid comes after the U.S. Department of Justice proposed Google divest Chrome as part of the antitrust suit the company lost last year. A federal judge ruled that Google maintained an illegal monopoly in the internet search market, setting the stage for potential forced asset sales.

The Justice Department's antitrust case against Google, which began in 2020, accused the company of unlawfully suppressing competition by locking in default search deals with device manufacturers and browser developers. This ruling has created an unprecedented opportunity for competitors to challenge Google's dominance in the browser market.

David vs. Goliath: A $18 Billion Company Bidding $34.5 Billion

The most striking aspect of this acquisition attempt is the sheer audacity of the numbers involved. Perplexity has a valuation of $18 billion, yet the AI startup is proposing to purchase Chrome for nearly double its own market value. Perplexity claims to have requisite financing lined up to buy Chrome for $34.5 billion, though the company has not disclosed the specific funding sources.

This financial disparity underscores the transformative potential that Perplexity sees in owning the world's most popular web browser, which commands approximately 65% of the global browser market share.

Strategic Implications for the AI Wars

Perplexity's bid represents more than just a business transaction—it's a strategic maneuver in the intensifying artificial intelligence competition. By acquiring Chrome, Perplexity would gain direct access to billions of users' browsing data and search queries, potentially revolutionizing how AI-powered search integrates with everyday internet usage.

The acquisition would also position Perplexity as a major player capable of challenging established tech giants like Microsoft, Meta, and OpenAI in the race for AI supremacy. Control over Chrome's vast user base could provide the startup with unprecedented insights into user behavior and preferences, fueling more sophisticated AI models.

Commitment to Open Standards and Competition

Perplexity has committed to "continued availability and support" for Chrome for 100 months and investing $3 billion in Chromium over the next 24 months. Chromium, Google's open-source browser technology, serves as the foundation for numerous other browsers, including Microsoft Edge.

This commitment suggests that Perplexity recognizes the broader ecosystem implications of Chrome ownership and aims to maintain the browser's role in supporting web standards and competition.

Market Valuation and Expert Analysis

Industry experts have varying opinions on Chrome's true market value. Some analysts have suggested that Chrome could be sold for up to $50 billion if a spinout was required, indicating that Perplexity's $34.5 billion offer, while substantial, may still be below the browser's potential maximum value.

However, analysts say the sale is unlikely, pointing to Google's stated intention to appeal the antitrust ruling and the complex regulatory hurdles involved in such a massive acquisition.

Google's Response and Future Outlook

Google has not indicated any willingness to sell Chrome and continues to contest the antitrust ruling. Alphabet has planned to appeal a United States court ruling that said Google held an unlawful monopoly over the online search marketplace.

The tech giant's resistance to the divestiture order sets up a prolonged legal battle that could take years to resolve, potentially leaving Perplexity's offer in limbo.

Impact on the Digital Advertising Ecosystem

Should this acquisition materialize, it would fundamentally reshape the digital advertising landscape. A new owner could upend default search deals, disrupt traffic patterns, and rewrite the rules for how audiences are tracked, targeted, and monetized.

This transformation could benefit advertisers and publishers by introducing new competition and potentially more favorable terms, while also raising questions about data privacy and user protection under new ownership.

The Broader Context of Tech Industry Consolidation

Perplexity's bold move reflects broader trends in the technology sector, where AI companies are seeking strategic assets to accelerate their growth and compete with established players. The bid also highlights the increasing regulatory scrutiny facing big tech companies and the opportunities this creates for nimble startups.

What This Means for Browser Innovation

If successful, Perplexity's acquisition could inject fresh innovation into browser technology, particularly in integrating advanced AI capabilities directly into the browsing experience. This could lead to more intelligent search suggestions, automated content summarization, and enhanced user productivity features.

Conclusion: A Moonshot with Industry-Wide Implications

In a moonshot move, AI search engine Perplexity has offered to buy Chrome from Google, creating one of the year's most significant technology stories. While the likelihood of success remains uncertain, the bid itself demonstrates the shifting power dynamics in the tech industry and the growing influence of AI-focused companies.

As regulatory pressure mounts on big tech and AI capabilities continue to advance, Perplexity's audacious offer may be just the beginning of a new era of industry consolidation and competition. Whether or not this particular deal succeeds, it has already succeeded in putting both Perplexity and the broader question of browser market competition firmly in the spotlight.

Cade Metz and Cecilia Kang | NYTimes Technology | Disclosure

The Hunt for a Lost Microscopic Art World

Decades ago, designers etched microscopic doodles onto silicon chips to leave their marks. Now, techno-archaeologists search for the tiny fossils.

Emmett Lindner and Lyndon French | NYTimes Technology | Disclosure

Why A.I. Should Make Parents Rethink Posting Photos of Their Children Online

Artificial intelligence apps generating fake nudes, amid other privacy concerns, make “sharenting” far riskier than it was just a few years ago.

Brian X. Chen | NYTimes Technology | Disclosure

Chatbots Can Go Into a Delusional Spiral. Here’s How It Happens.

Over 21 days of talking with ChatGPT, an otherwise perfectly sane man became convinced that he was a real-life superhero. We analyzed the conversation.

Kashmir Hill and Dylan Freedman | NYTimes Technology | Disclosure

Britain Forces Porn Sites to Get Serious on ‘Age-Gating’

The new measures have been widely embraced, but new age-verification methods have drawn some criticism because of privacy concerns.

Jenny Gross | NYTimes Technology | Disclosure