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A major AI company filed accounts months late and pointed the finger at its Big Four auditor

Charles Liang, CEO of Supermicro Computer.
Charles Liang, CEO of Supermicro Computer.

Walid Berrazeg/SOPA Images/LightRocket via Getty Images

  • Supermicro filed annual financial reports late after an accounting dispute with ex-auditor EY.
  • EY dropped Supermicro as a client after raising concerns about its internal financial governance.
  • Supermicro said that after it replaced EY with another accounting firm, no issues were found.

Supermicro, the AI server manufacturer and Nvidia partner, has met the deadline for a late filing of its annual financial reports, and is blaming its former auditor EY for the delay.

The tech company, which does business as Supermicro, filed its overdue 10-K annual filing for fiscal 2024 and the first two quarterly reports for fiscal 2025 on Tuesday with the Securities and Exchange Commission.

The filings came months late, putting Supermicro at risk of being delisted from the Nasdaq 100 for failing to meet compliance requirements. The company was granted an extension by Nasdaq in December.

"The Company is now current with its SEC financial reporting obligations," Supermicro said in a press release.

In an explanatory note included in the filing, Supermicro blamed its previous auditor, EY, for the delay, saying that the reports were late "due to EY's stated concerns and subsequent resignation."

According to the filing, theΒ Big Four firmΒ dropped Supermicro as a client in October 2024 after raising concerns to the board in July about the governance and transparency of the company's financial reporting and the integrity of its senior management.

In August 2024, Hindenburg Research, a now-defunct US short-seller, said it found "glaring accounting red flags" in Supermicro's financial practices. Hindenburg's report cited "evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues."

"We disagreed with EY's decision to resign as our independent registered public accounting firm for a number of reasons," Supermicro said in the filing.

Its reasons included that a number of audit procedures were left incomplete when EY stepped down and that a special committee set up to investigate concerns was still conducting its review.

The server manufacturer also addressed the Hindenburg report in the filing. Supermicro denied any wrongdoing and said that the report "contained false or inaccurate statements about us, including misleading presentations of information we previously shared publicly."

Supermicro, which has a market capitalization of just over $30 billion, appointed BDO, a Belgian-headquartered firm, as its new accountant in November.

BDO found that the financial statements "present fairly, in all material respects, the financial position of the Company," according to the filings.

The special committee's review "did not give rise to any substantial concerns about the integrity of our senior management or the Audit Committee, or their commitment to ensuring that our financial statements are materially accurate," Supermicro said in the SEC filing.

EY declined to comment.

Charles Liang, founder, president, and CEO of Supermicro, called Tuesday's filings "an important milestone" for the company.

Supermicro's stock soared by more than 12% on Wednesday after it made the filing and regained compliance with Nasdaq's listing requirements.

Supermicro was an early launch partner for Nvidia, AMD, and Intel for CPUs and GPU accelerators and has since ridden the wave of AI hype to success.

The server manufacturer has seen its share price explode over recent years, climbing more than 1,000% since the start of 2022.

Supermicro's shares are up 67% to date this year. The filings show that sales more than doubled from $7.12 billion to $14.9 billion in 2024.

Read the original article on Business Insider

North Koreans are back to fighting alongside Russia, South Korean intelligence says

Five North Korean soldiers kneeling and aiming guns while several people using parachutes drop from the sky behind them.
North Korean troops β€” pictured here in a state-media training image β€” have sustained heavy losses against Ukraine.

KCNA/via REUTERS

  • North Korean troops have returned to fighting alongside Russia, South Korea's spy agency said.
  • It also said there appears to have been a deployment of fresh troops.
  • Ukraine said in January that at least 3,800 North Koreans had been killed or wounded in the war.

North Korean troops have returned to fighting alongside Russia, South Korea's spy agency said, following reports of earlier heavy losses.

"Following about a monthlong lull, North Korean troops were placed back in the frontline region of Kursk starting in the first week of February," South Korea's National Intelligence Service said in a note to the press seen by South Korean news agency Yonhap.

"It appears that there has been a deployment of additional troops, but their size is still being examined," the intelligence agency said.

The note came after South Korean newspaper The JoongAng cited unnamed sources as saying that Russian cargo ships and military aircraft had transported between 1,000 and 3,000 additional North Korean troops sometime in January or February.

Business Insider was unable to independently verify the claim.

Last fall, Western and South Korean intelligence agencies said that Pyongyang had sent around 11,000-12,000 troops to fight in Kursk, the Russian region under partial occupation by Ukraine.

Russia was estimated to be paying around $2,000 a month per soldier, though the soldiers themselves are unlikely to see much of that.

Dmytro Ponomarenko, Ukraine's ambassador to South Korea, told Voice of America in November that Pyongyang would likely maintain a presence of up to 15,000 troops in the war, rotating soldiers every two to three months.

He said this could mean 100,000 North Korean troops cycling in and out of combat within a year.

Ukrainian President Volodymyr Zelenskyy said last month that at least 3,800 North Koreans had been killed or wounded in Kursk.

The UK's Ministry of Defence also said earlier this month that North Korean units had been withdrawn from frontline positions, likely to rest and refit before being redeployed.

"This is almost certainly primarily due to heavy losses sustained during attacks against Ukrainian-held positions," it said.

Pyongyang has sent some of its best units to Russia β€” special forces including members of its elite 11th Corps, also known as the "Storm Corps," considered to be committed and hardened fighters.

But the US said in December that North Korean troops were being sent on "hopeless" human wave assaults against Ukrainian positions, taking more than 1,000 casualties in the space of just one week.

According to the Kyiv Independent, Russia has, in recent days, ramped up its attacks in Kursk. The region is considered a key negotiating chip in any coming peace talks between Ukraine and Russia.

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Marc Benioff throws shade at Microsoft and Big Tech's massive AI spending

Marc Benioff, the CEO and cofounder of Salesforce.
Salesforce CEO Marc Benioff took aim at massive AI investments.

Eric Risberg/ AP Images

  • Salesforce CEO Marc Benioff questioned whether Big Tech's AI investments are delivering results.
  • Salesforce is focusing on AI integration, not building costly data centers, Benioff said Wednesday.
  • The company reported fourth-quarter revenue of $9.99 billion, missing consensus estimates.

Salesforce CEO Marc Benioff has berated Big Tech peers for their spending on AI and data centers, questioning whether companies like Microsoft are seeing real returns on their massive investments.

Benioff said Wednesday that Salesforce isn't investing in projects that would suck up the company's cash but wouldn't guarantee big returns.

"We aren't building huge $10 million, $20 million, $30 million, $100 billion data centers," Benioff said during Salesforce's earnings call. "We're not doing some of these kind of engineering efforts that may or may not have some kind of huge payoff, but is going to take down all of our cash and all of our margin for the next several years."

Instead, Benioff said the company is "augmenting" its existing product line with AI and taking advantage of "incredible" infrastructure investments by others to deliver on what he has called the "digital labor revolution."

Benioff's comments come as Amazon, Microsoft, and Meta have ramped up their planned AI investments for this year.

Amazon is leading the way, planning to allocate over $100 billion in capital expenditures this year, up from $77 billion in 2024. The vast majority will be spent on expanding Amazon Web Services and scaling AI infrastructure, the company said earlier this month.

Microsoft, which Benioff singled out by name on the earnings call, plans to spend $80 billion on AI-related infrastructure this year.

The Salesforce CEO isn't convinced by Microsoft's AI-powered workplace tools, describing the company as the "reseller of OpenAI" and questioning the company's agentic AI offering.

"Where on their side are they delivering agents? Where in their company have they done this? Where are they at best practice?" Benioff said, adding, "Do they have humans and agents working together to create customer success? Are they re-balancing their workforce with humans and agents?"

It's not the first time that Benioff has publicly taken shots at Microsoft.

Last year, he openly mocked Microsoft's AI assistant, Copilot, on multiple occasions, calling it "disappointing" and comparing it to Clippy, Microsoft's discontinued animated paperclip assistant.

Meanwhile, Benioff is pushing Salesforce's own rival agentic AI offering.

"Our goal is to be the number one provider of digital labor in the world," he said during the earnings call. "That's it. I don't think there really is another goal."

Salesforce reported fourth-quarter revenue of $9.99 billion, missing a consensus estimate of $10.04 billion.

Its shares fell by 5% in extended trading after the company forecasted fiscal 2026 revenue below Wall Street expectations.

Microsoft did not immediately respond to a Business Insider request for comment.

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Will AI replace human jobs and make universal basic income necessary? Here's what AI leaders have said about UBI.

a blue background with stacks of $100 bills
Universal basic income provides recurring cash payments with no strings attached.

Wong Yu Liang

  • AI advances could widen wealth gaps, which has prompted calls for a universal basic income.
  • UBI offers recurring cash payments to all adults in a population, regardless of status.
  • AI leaders such as Elon Musk and Sam Altman have called for a universal basic income.

Universal basic income, once a utopian ideal, has become a hot topic among AI leaders.

It's a recurring cash payment made to all adults in a certain population, regardless of their wealth and employment status. There are no restrictions on how recipients spend their money.

As advancements in artificial intelligence technology drive economic growth, concerns are rising about whether the wealth it generates is shared equitably.

Industry leaders such as OpenAI CEO Sam Altman and AI's "godfather," Geoffrey Hinton, have warned about AI's potential to eliminate jobs β€” and subsequently widen the wealth gap between the haves and the have-nots. They, along with other tech leaders, are advocates of universal basic income as an antidote.

The concept of countries implementing universal basic income has shifted in recent years from a niche topic within tech circles to a mainstream conversation, thanks in part to the former presidential candidate Andrew Yang, who made UBI a central part of his platform in 2020.

Yang campaigned on what he called the "Freedom Dividend," monthly $1,000 payments with no strings attached to all American adults. The idea was met with skepticism, and Yang's candidacy quickly fizzled. After the success of pandemic-era stimulus checks, though, and now the rise of AI, the idea has gained new traction.

Guaranteed basic income, which is similar to UBI but targets specific groups of people for a set period of time, has been piloted over 100 times across the country. The United States has basic income programs in 16 states, along with Washington, DC, that give residents cash β€” no strings attached.

The movement toward basic income programs is not without its critics. Some argue the programs could disincentivize recipients to work or even encourage them to spend frivolously. Some say the expenses of basic income programs could lead to higher taxes or local government budget cuts.

For now, though, AI leaders say it's the best option to mitigate the adverse economic impacts the technology could have. Here's what some of the major AI figures are saying about UBI.

Sam Altman
Sam Altman gestures while giving a speech at an event.
OpenAI CEO Sam Altman has called for a universal basic income as AI threatens jobs.

Microsoft

Altman has long been a vocal proponent of universal basic income.

In July, the results of Altman's universal basic income study were published. The study, which began in 2019, was conducted by the nonprofit research lab OpenResearch, and OpenAI contributed $60 million to it β€” $14 million of which was Altman's own money.

The study distributed payments to 3,000 urban, suburban, and rural residents of Texas and Illinois, all of whom had annual incomes below $28,000. One-third received $1,000 a month for three years, while the rest received $50 a month.

The study found that those who received the $1,000 payments increased their overall spending by an average of $310 a month, but most of that spending went toward food, rent, and transportation.

"We do see significant reductions in stress, mental distress, and food insecurity during the first year, but those effects fade out by the second and third years of the program," the report said, adding: "Cash alone cannot address challenges such as chronic health conditions, lack of childcare, or the high cost of housing."

But that's not Altman's only UBI endeavor. He also has a futuristic cryptocurrency startup called Worldcoin, which aims to build the largest encrypted identity network in the world by scanning people's irises with a baseball-sized orb. One way this technology could be implemented, its founders say, is to underpin the network that lets it collect UBI.

As OpenAI continues to build more capable foundation models, Altman has also suggested that rationing their computational resources across individuals might be more economically efficient than distributing cash. Altman has floated the idea of a "universal basic compute" in which people would get a "slice" of the computational resources of the company's large language models that they could use however they liked.

Elon Musk
Elon Musk smirking
Elon Musk has championed universal basic income.

Marc Piasecki/Getty Images

Musk is a champion of UBI. The world's richest man has said that universal basic income could give people more freedom over how they use their time and money and that AI would increase the share of UBI that people could receive.

In May 2024 at the annual technology conference VivaTech, Musk said: "In a benign scenario, probably none of us will have a job. There would be universal high income. There would be no shortage of goods and services. The question will really be one of meaning: If a computer can do, and the robots can do, everything better than you, does your life have meaning? I do think there's perhaps still a role for humans in that we may give AI meaning."

Vinod Khosla
Vinod Khosla is pictured at an event, with a microphone clipped to his suit jacket.
The venture capitalist Vinod Khosla said that "UBI could become crucial" as AI reduces the need for human labor.

Steven Ferdman/Getty Images

Khosla says AI advancements will cause job losses by automating, the majority of human labor and that UBI will be a necessary safety net.

"As AI reduces the need for human labor, UBI could become crucial, with governments playing a key role in regulating AI's impact and ensuring equitable wealth distribution," Khosla wrote in a post on the website for Khosla Ventures, his firm, in September 2024.

Unlike the internet or mobile phones, which have assisted human workers, he wrote that AI "amplifies and multiplies the human brain much as the advent of steam engines and motors amplified muscle power." In other words, he suggests humans will be too slow and expensive to contribute meaningfully to the labor force in the age of AI.

Dario Amodei
Dario Amodei, the CEO of Anthropic, sits in front of a tan background.
Anthropic CEO Dario Amodei said in an essay that universal basic income will "only be a small part of a solution."

Anthropic

Amodei, the CEO of Anthropic, has said UBI is the least that can be done to mitigate the effects of AI.

"Civilization has successfully navigated major economic shifts in the past: from hunter-gathering to farming, farming to feudalism, and feudalism to industrialism. I suspect that some new and stranger thing will be needed, and that it's something no one today has done a good job of envisioning. It could be as simple as a large universal basic income for everyone, although I suspect that will only be a small part of a solution," he wrote in an essay on his personal blog in October 2024.

In Amodei's opinion, AI will alter our world in such a fundamental way that we'll need to think about a more comprehensive solution to inequality.

Andrew Yang
Andrew Yang poses for a photograph, wearing a pin from his presidential campaign.
Andrew Yang famously ran for president on a UBI platform.

Hollis Johnson/Business Insider

Even before AI took the world by storm, Yang, an entrepreneur and lobbyist, was a proponent of universal basic income. He advocated giving all Americans a $2,000 monthly stipend for the duration of the pandemic.

In Yang's interview with Business Insider in June 2020, a few months after he dropped his presidential campaign, Yang said he was "very confident that universal basic income was the future of our country."

Geoffrey Hinton
Computer scientist Geoffrey Hinton stood outside a Google building
AI's "godfather," Geoffrey Hinton, has warned about AI leading to job losses and advised governments to explore UBI.

Noah Berger/Associated Press

Hinton, the "godfather" of AI, has expressed concerns about the ramifications of AI.

Hinton has discussed his fears about AI-induced job losses and advised the UK government to adopt universal basic income as a solution.

Read the original article on Business Insider

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