How the FBI built its own smartphone company to hack the criminal underworld

Private equity is a simple concept — a PE firm uses some combination of money and debt to buy a company, then makes a profit — but the reality of what happens to the companies that get acquired is anything but. It's everywhere, and it's not going away. In this summer remix, we're talking with Brendan Ballou, author of Plunder: Private Equity’s Plan to Pillage America, about how we got here and what happens next.  Links:  Private equity bought out your doctor and bankrupted Toys“R”Us — here’s why that matters | The Verge Private equity and mismanagement: Here's what really killed Red Lobster | Fast Company Sony and Apollo send letter expressing interest in $26 billion Paramount buyout | NBC News Plunder: Private Equity’s Plan to Pillage America | Brendan Ballou Barbarians at the Gate: The Fall of RJR Nabisco | Bryan Borrough & John Helyar Barnes & Noble is going back to its indie roots to compete with Amazon | The Verge Credits: Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Our producers are Kate Cox and Nick Statt. Our editor is Callie Wright. The Decoder music is by Breakmaster Cylinder. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Cohere is one of the buzziest AI startups around right now. It's not making consumer products; it's focused on the enterprise market and making AI products for big companies. And there's a huge tension there: up until recently, computers have been deterministic. If you give computers a certain input, you usually know exactly what output you’re going to get. There’s a logic to it. But if we all start talking to computers with human language and getting human language back, well, human language is messy. And that makes the entire process of knowing what to put in and what exactly we’re going to get out of our computers different than it ever has been before. Links:  Attention is all you need On the Dangers of Stochastic Parrots Introducing the AI Mirror Test, which very smart people keep failing | The Verge AI isn’t close to becoming sentient | The Conversation These are Microsoft’s Bing AI secret rules and why it says it’s named Sydney | The Verge ‘Godfather of AI’ quits Google with regrets and fears about his life’s work | The Verge Microsoft CTO Kevin Scott on Bing’s quest to beat Google | The Verge Top AI researchers and CEOs warn against ‘risk of extinction’ | The Verge Google Zero is here — now what? | The Verge Cara grew from 40k to 650k in a week because artists are fed up with Meta’s AI policies | TechCrunch How AI copyright lawsuits could make the whole industry go extinct | The Verge Transcript: https://www.theverge.com/e/23937899 Credits: Decoder is a production of The Verge and part of the Vox Media Podcast Network. Our producers are Kate Cox and Nick Statt. Our editor is Callie Wright. Our supervising producer is Liam James. The Decoder music is by Breakmaster Cylinder. Learn more about your ad choices. Visit podcastchoices.com/adchoices

The art of video game design is flourishing, but it feels like a really grim time to be in the business of making and distributing games. Huge global publishers and tiny indie studios alike are facing huge financial pressures, and it doesn’t seem to be letting up anytime soon. So where did this enormous pressure come from, if consumer interest is high and sales are great? Verge video game reporter Ash Parrish joins Decoder to explain. Links:  Global games market expected to grow to $189bn in 2024 | GamesIndustry.biz Why the video game industry is seeing so many layoffs | Polygon The tech industry’s layoffs and hiring freezes: all of the news | The Verge Fortnite made more than $9 billion in revenue in its first two years | The Verge Insomniac’s Spider-Man 2 Swings Past 10 Million Sold | IGN The future of Netflix games could look like reality TV | The Verge Credits: Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Our producers are Kate Cox and Nick Statt. Our editor is Callie Wright. The Decoder music is by Breakmaster Cylinder. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Today, I’m talking with Zoom CEO Eric Yuan — and let me tell you, this conversation is nothing like what I expected. It turns out Eric wants Zoom to be much, much more than just a videoconferencing platform. Zoom wants to take on Microsoft and Google and now has a big investment in AI – and Eric’s visions for what that AI will do are pretty wild. See, Eric really wants you to stop having to attend Zoom meetings yourself. You’ll hear him describe how he thinks one of the big benefits of AI at work will be letting us all create something he calls a “digital twin," essentially a deepfake of yourself that can go attend meetings on your behalf and even make decisions for you. I’ll just warn you: I tried to ask a bunch of the usual Decoder questions during this conversation, but once we got to digital twins going to Zoom meetings for people, well, I had a lot of followup questions.  Links:  Zoom gets its first major overhaul in 10 years, powered by generative AI | ZDNet An interview with Zoom CEO Eric Yuan | Stratechery / Ben Thompson Zoom is cutting about 150 jobs, or close to 2% of its workforce | CNBC Zoom meetings are about to get weirder thanks to the Vision Pro | The Verge Zoom Docs launches in 2024 with built-in AI collaboration features | The Verge Zoom rewrites its policies to make clear that your videos aren’t used to train AI tools | The Verge Zoom says its new AI tools aren’t stealing ownership of your content | The Verge Zoom adds “post-quantum” end-to-end encryption | Zoom Transcript: https://www.theverge.com/e/23932774 Credits:  Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Today’s episode was produced by Kate Cox and Nick Statt and was edited by Callie Wright. The Decoder music is by Breakmaster Cylinder. Learn more about your ad choices. Visit podcastchoices.com/adchoices

For nearly 20 years now, the web has been Google’s platform; we’ve all just lived on it. I think of Decoder as a show for people trying to build things, and a lot of people have built their things on that platform. For a lot of small businesses and content creators, that’s suddenly not stable anymore. The number one question I have for anyone building things on someone else’s platform is: What are you going to do when that platform changes the rules? Links:  How Google is killing independent sites like ours | HouseFresh HouseFresh has virtually disappeared from Google Search results. Now what? | HouseFresh Google Is Killing Retro Dodo & Other Independent Sites | Retro Dodo Google CEO Sundar Pichai on AI-powered search and the future of the web | The Verge Will A.I. Break the Internet? Or Save It? | The New York Times Google confirms the leaked Search documents are real |The Verge An Anonymous Source Shared Thousands of Leaked Google Search API Documents with Me; Everyone in SEO Should See Them | SparkToro Mountain Weekly News Telly Visions E-ride Hero That Fit Friend Credits: Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Today’s episode was produced by Kate Cox and Nick Statt and was edited by Callie Wright. The Decoder music is by Breakmaster Cylinder. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Today, I’m talking with Joseph Cox, one of the best cybersecurity reporters around and a co-founder of the new media site 404 Media. Joseph has a new book coming out in June called Dark Wire: The Incredible True Story of the Largest Sting Operation Ever, and I can’t recommend it enough. It’s basically a caper, but with the FBI running a phone network. For real.  Joseph walks us through the fascinating world of underground criminal phone networks, and how secure messaging, a tech product beloved by drug traffickers, evolved from the days of BlackBerry Messenger to Signal. Along the way, the FBI got involved with its very own startup, ANOM, as part of one of the most effective trojan horse operations in the history of cybersecurity. Joseph’s book is a great read, but it also touches on a lot of things we talk about a lot here on Decoder. So this conversation was a fun one.  Links:  Dark Wire by Joseph Cox | Hachette Book Group How Vice became ‘a fucking clown show’ | The Verge Cyber Official Speaks Out, Reveals Mobile Network Attacks in US | 404 Media Revealed: The Country that Secretly Wiretapped the World for the FBI | 404 Media How Secure Phones for Criminals Are Sold on Instagram | Motherboard A Peek Inside the Phone Company Secretly Used in an FBI Honeypot | Motherboard The FBI secretly launched an encrypted messaging system for criminals | The Verge Canadian police have had master key to BlackBerry's encryption since 2010 | The Verge Credits: Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Today’s episode was produced by Kate Cox and Nick Statt and was edited by Callie Wright. The Decoder music is by Breakmaster Cylinder. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Today, I’m talking to Google CEO Sundar Pichai, who joined the show the day after the big Google I/O developer conference. Google’s focus during the conference was on how it’s building AI into virtually all of its products. If you’re a Decoder listener, you’ve heard me talk about this idea a lot over the past year: I call it “Google Zero,” and I’ve been asking a lot of web and media CEOs what would happen to their businesses if their Google traffic were to go to zero. In a world where AI powers search with overviews and summaries, that’s a real possibility. What then happens to the web?  I’ve talked to Sundar quite a bit over the past few years, and this was the most fired up I’ve ever seen him. I think you can really tell that there is a deep tension between the vision Google has for the future — where AI magically makes us smarter, more productive, more artistic — and the very real fears and anxieties creators and website owners are feeling right now about how search has changed and how AI might swallow the internet forever, and that he’s wrestling with that tension. Links:  Google and OpenAI are racing to rewire the internet — Command Line Google I/O 2024: everything announced — The Verge Google is redesigning its search engine, and it’s AI all the way down — The Verge Project Astra is the future of AI at Google — The Verge Did SEO experts ruin the internet or did Google? — The Verge YouTube is going to start cracking down on AI clones of musicians — The Verge AI is killing the old web, and the new web struggles to be born — The Verge How Google is killing independent sites like ours — HouseFresh Inside the First 'SEO Heist' of the AI Era — Business Insider Google’s Sundar Pichai talks Search, AI, and dancing with Microsoft — Decoder Transcript: https://www.theverge.com/e/23922415 Credits: Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Today’s episode was produced by Kate Cox and Nick Statt and was edited by Callie Wright. The Decoder music is by Breakmaster Cylinder. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Last week, TikTok filed a lawsuit against the US government claiming the divest-or-ban law is unconstitutional — a case it needs to win in order to keep operating under Bytedance’s ownership. There’s a lot of back and forth between the facts and the law here: Some of the legal claims are complex and sit in tension with a long history of prior attempts to regulate speech and the internet, while the simple facts of what TikTok has already promised to do around the world contradict some its arguments. Verge editors Sarah Jeong and Alex Heath join me to explain what it all means. Links:  TikTok and Bytedance v Merrick Garland (PDF) TikTok sues the US government over ban | The Verge Senate passes TikTok ban bill, sending it to President Biden’s desk | The Verge The legal challenges that lie ahead for TikTok — in both the US and China | The Verge Why the TikTok ban won’t solve the US’s online privacy problems. | Decoder  Biden signs TikTok ‘ban’ bill into law, starting the clock for ByteDance to divest it | The Verge Credits: Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Today’s episode was produced by Kate Cox and Nick Statt and was edited by Callie Wright. The Decoder music is by Breakmaster Cylinder. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Adobe CEO Shantanu Narayen has been at the top of my list of people I’ve wanted to talk to for the show since we first launched — he’s led Adobe for nearly 17 years now, but he doesn’t do too many wide-ranging interviews. I’ve always thought Adobe was an underappreciated company — its tools sit at the center of nearly every major creative workflow you can think of — and with generative AI poised to change the very nature of creative software, it seemed particularly important to talk with Shantanu now. Adobe sits right at the center of the whole web of tensions, especially as the company has evolved its business and business model over time. And now, AI really changes what it means to make and distribute creative work. Not many people are seeing revenue returns on it just yet and there are the fundamental philosophical challenges of adding AI to photo and video tools. What does it mean when a company like Adobe, which makes the tools so many people use to make their art, sees the creative process as a step in a marketing chain, instead of a goal in and of itself? Links:  How Adobe is managing the AI copyright dilemma, with general counsel Dana Rao  Adobe Launches Creative Cloud (2012) What was Photoshop like in 1994?  Photoshop’s Generative Fill tool turns vacation photos into nightmares - The Verge New York Daily News, Chicago Tribune, and others sue OpenAI and Microsoft - The Verge The FAIR Act: A New Right to Protect Artists in the Age of AI | Adobe Blog Adobe’s Firefly generative AI tools are now generally available - The Verge This Wacom AI debacle has certainly taken a turn. - The Verge Transcript:  https://www.theverge.com/e/23917997 Credits: Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Today’s episode was produced by Kate Cox and Nick Statt and was edited by Callie Wright. The Decoder music is by Breakmaster Cylinder. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Today, we’re going to talk about the smart home — one of the oldest, most important, and most challenging dreams in the history of the tech industry. The idea of your house responding to you and your family, and generally being as automated and as smart as your phone or your laptop, has inspired generations of technologists. But after decades of promises, it’s all still pretty messy. Because the big problem with the smart home has been blindingly obvious for a very long time: interoperability.  Yet there are some promising developments out there that might make it a little better. To help sort it all out, I invited Verge smart home reviewer Jen Tuohy, who is one of the most influential reporters on the smart home beat today. Jen and I break down how Matter, the open source standard, is trying to fix these issues, but there is still a lot of work to do.  Links:  Matter is now racing ahead, but the platforms are holding it back — The Verge 2023 in the smart home: Matter’s broken promises — The Verge Smart home hubs: what they are and why you need one — The Verge My smart kitchen: the good, the bad, and the future — The Verge How bad business broke the smart home — The Verge The smart home is finally getting out of your phone and into your home — The Verge Credits: Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Today’s episode was produced by Kate Cox and Nick Statt and was edited by Callie Wright. Our supervising producer is Liam James. The Decoder music is by Breakmaster Cylinder.  Learn more about your ad choices. Visit podcastchoices.com/adchoices