Good morning. Unless you’re Baidu, in which case: You good?
Things have been tough lately for the Chinese Internet pioneer. Its successes in AI during the previous decade have since been overshadowed by a host of new players. Its shares have been on a downward slide since early 2021; Baidu is currently valued lower than any profitable company on the Hang Seng Tech Index.
Baidu is spending like crazy to catch up, in an array of categories—cloud computing, self-driving cars, and of course AI, thanks to its Ernie family. But its core search advertising business is under fire from rivals Douyin and Xiaohongshu. On Thursday, the company posted its worst quarterly revenue drop in three years.
The old adage is building the plane while you’re flying it—but for Baidu, it may be more “rebuilding the plane while you’re putting out an engine fire.” Can it mount a cinematic comeback? For now, investors say: Surely you can’t be serious.
Today’s tech news below. —Andrew Nusca
Want to send thoughts or suggestions to Fortune Tech? Drop a line here.
Google unveils its $1,799 Pixel 10 Pro Fold
A foldable phone…that you can bring poolside?
On Wednesday, Google took the wraps off its Google Pixel 10 Pro Fold, which carries an IP68 rating for dust and water resistance.
How resistant is that, you ask? Products that enjoy the same rating include outdoor holiday lighting, sport headphones, and your favorite flagship smartphones from Apple and Samsung. So: Call in the rain? Sure. Explore a shipwreck? Afraid not, Monsieur Cousteau.
Still: That’s a big deal for a device with a hinge. The elements certainly pose a challenge to moving parts on a consumer electronic device—sometimes in ways you might not think of. Consider what a grain of sand might do to a foldable device that isn’t prepared to deal with it.
Some of the biggest tech companies are working on entries into the foldable category. For example, Samsung released its first foldable Galaxy phone way back in 2019, but its rumored Galaxy Z Tab has yet to see the light of day. (Ever the overachiever, it’s also working on a tri-fold phone.)
Apple, meanwhile, has been rumored to be working on a foldable iPhone and iPad. But mum’s the word in Cupertino.
Back to the Pixel 10 Pro Fold. Elsewhere, you can expect the usual generational improvements to the device. The new model is a little slimmer in the bezel department, a little brighter, and a little more capable thanks to the latest, AI-ready Tensor chips within. One exception, though: The camera hardware hasn’t changed.
The device will retail for $1,799 and ship Oct. 9. —AN
Minnesota sues TikTok for manipulating young users
The latest trend on TikTok? Lawsuits.
Minnesota on Tuesday joined almost two dozen U.S. states in suing TikTok, alleging that the video service uses addictive algorithms to hook young people and keep them watching—without informing them of the harms or mental health risks of doing so.
“This isn’t about free speech,” said Minnesota attorney general Keith Ellison at a news conference. “It’s actually about deception, manipulation, misrepresentation. This is about a company knowing the dangers, and the dangerous effects of its product, but making and taking no steps to mitigate those harms or inform users of the risks.”
Minnesota, like other states, has also sued Meta for similar allegations.
The TikTok lawsuit specifically alleges that the company has violated state laws against deceptive trade practices and consumer fraud—similar language to the suits filed by other U.S. states, which came in the wake of a nationwide investigation.
Minnesota seeks, among other things, a permanent injunction against the practices and up to $25,000 for each instance in which a Minnesota child has accessed TikTok.
TikTok, of course, has bigger issues. Enforcement delays notwithstanding, the company’s U.S. arm is still barred from domestic operation pending its acquisition by a government-approved owner. China’s ByteDance has previously stated that it has no interest in divesting the business.
In a press statement, TikTok refuted the Minnesota claims, calling them “misleading” and “inaccurate.” It added that the service has a host of features and settings “designed to help young people safely express themselves.” —AN
Sony raises PlayStation 5 prices by $50, citing ‘challenging economic environment’
Sony on Wednesday said it would raise the price of all models of its PlayStation 5 game console by $50 in the U.S.
In a blog post, Sony blamed the global trade war for the price hike. Most PS5s are assembled in Kisarazu, Japan; some components are made in China and Malaysia.
“Similar to many global businesses, we continue to navigate a challenging economic environment,” Sony wrote. The company had warned in May that it might boost prices.
Left unsaid: The considerable import duties imposed by President Trump. There is currently a 15% levy on Japanese imports, a 19% tariff on those from Malaysia, and a 30% tariff—for now—on Chinese goods.
Several types of consumer electronics were exempted from the wave of tariffs, but video game consoles were not one of them; they are classified by U.S. trade authorities as toys.
The PlayStation 5 price changes will take effect today. The baseline PS5 will retail for $550, the Digital Edition will sell for $500, and the Pro model will retail for $750.
Accessory prices will not change.
Sony is hardly the only gaming giant adjusting to the new global economic landscape. Microsoft and Nintendo similarly raised the price of their Xbox and Switch game consoles, respectively. —AN
More tech
—Meta freezes AI hiring amid reorg. Exceptions reportedly need Alexandr Wang's permission.
—Amazon readies new Fire tablets. It may toss out its “forked” version of Android for the real deal.
—“Seemingly conscious AI:” Imminent but something to avoid, warns Microsoft AI CEO Mustafa Suleyman.
—Meet Surya, IBM and NASA’s open source AI model for predicting solar flares and winds.
—$249 AI glasses? Seeing is believing, courtesy of startup Halo.
—Character.AI could raise more money…or sell. Its founders were reverse acqui-hired in June after a $2.7 billion Google investment.
—OpenAI records first $1 billion revenue month. The company is limited by its “voracious” appetite for compute, CFO Sarah Friar says.
—Xbox Ally handhelds to launch Oct. 16. No word on price from Microsoft and Asus.
Endstop triggered
