Category: Technology News

BLETCHLEY, England (AP) — Artificial intelligence is “an unstoppable force” that is being weaponized in ways that fall just short of traditional warfare, the U.K. cyberspying chief warned Wednesday.

Anne Keast-Butler, director of the communications intelligence agency GCHQ, said that Britain and its allies are in “a space between peace and war” as Russia increases its “daily hybrid activity” against the West — even as Russian combat deaths in Ukraine approach 500,000.

She said that the West risks losing the conflict in cyberspace against Russia and other adversaries, unless citizens, companies and governments treat cybersecurity with much greater urgency.

“I’ve spent three decades working in national security, and the risk of miscalculation is as high as I’ve ever seen it,” Keast-Butler said in a speech at a World War II code-breaking center near London.

She said that “tech companies are releasing AI-driven innovations at a remarkable pace, with untold consequences, as algorithms are weaponized often just below the threshold of traditional warfare.

“AI is an unstoppable force with great opportunity,” she added. “But it is also a force with risks.”

Keast-Butler singled out Russia as a threat, accusing Moscow of “relentlessly targeting critical infrastructure, democratic processes, supply chains and public trust,” as well as stealing technology and plotting sabotage and assassination attempts.

“Russia is scaling up its daily hybrid activity against the U.K. and Europe, stretching from the seabed to cyberspace,” she told an audience of computing experts, diplomats, journalists and senior officials.

She said that one focus for British spies is “exposing Russia’s intent, motive and underwater capabilities” to target undersea telecoms cables and energy pipelines.

At the same time, she said that Russian troops are “going backwards on the battlefield,” with new intelligence suggesting “almost half a million Russian soldiers” have been killed since the full-scale invasion of Ukraine on Feb. 24, 2022.

The speech is the latest in a string of warnings from Western spies and intelligence experts that Russia is stepping up hostile activity in a “gray zone” that falls just below the threshold of war.

In recent months, authorities in countries including Sweden, Poland, Denmark and Norway have alleged that hackers linked to Russia targeted their critical infrastructure, including power plants and dams.

The head of the U.K.’s National Cyber Security Centre, Richard Horne, warned last month that hostile states including Russia, China and Iran are behind the most serious cyberattacks the country faces. He said such attacks could increase dramatically if Britain becomes involved in an international conflict.

Keast-Butler said that rapid advances in artificial intelligence mean that “the ground beneath our feet is shifting” and there is a “narrowing window for the U.K. and allies to stay ahead” of countries such as China, a science and technology “superpower.”

She said that the threat extends to space, where thousands of satellites have been launched in the last few years, and “both China and Russia are investing heavily … to support both peace and war ambitions.”

The spy chief said that GCHQ is developing a plan to use cutting-edge agentic AI for a national cybershield that could protect U.K. infrastructure and businesses from cyberattacks — though it’s thought to be several years from completion.

Harnessed responsibly, she said, AI can help spies “enhance algorithms, translate foreign languages, and find needles in haystacks quicker than ever before.”

Keast-Butler also said that the U.K.-U.S. intelligence partnership is “fundamental for the security of both our nations.” She spoke as U.S. President Donald Trump’s “America First” foreign policy platform and disregard for longtime allies strain the relationship between London and Washington.

GCHQ, short for Government Communications Headquarters, is the U.K.’s electronic and cyberintelligence agency. It works alongside the domestic security service MI5 and the foreign intelligence agency MI6.

Keast-Butler, the first woman to head the agency, delivered the GCHQ director’s annual lecture speech at the agency’s World War II headquarters of Bletchley Park, a manor house 45 miles (72 kilometers) northwest of London where hundreds of mathematicians, cryptographers, crossword puzzlers, chess masters and other experts worked to crack Nazi Germany’s supposedly unbreakable secret codes.

Their work both shortened the war and hastened the birth of modern computing.

BLETCHLEY, England (AP) — Artificial intelligence is “an unstoppable force” that is being weaponized in ways that fall just short of traditional warfare, Britain’s cyberspying chief warned Wednesday.

Anne Keast-Butler, director of the communications intelligence agency GCHQ, said Britain and its allies are in “a space between peace and war” as Russia increases its “daily hybrid activity” against the West — even as Russian combat deaths in Ukraine approach 500,000.

She said the West risks losing the conflict in cyberspace against Russia and other adversaries unless citizens, companies and governments treat cybersecurity with much greater urgency.

“I’ve spent three decades working in national security, and the risk of miscalculation is as high as I’ve ever seen it,” Keast-Butler said in a speech at a World War II code-breaking center near London.

She said that “tech companies are releasing AI-driven innovations at a remarkable pace, with untold consequences, as algorithms are weaponized often just below the threshold of traditional warfare.

“AI is an unstoppable force with great opportunity,” she added. “But it is also a force with risks.”

Keast-Butler singled out Russia as a threat, accusing Moscow of “relentlessly targeting critical infrastructure, democratic processes, supply chains and public trust” in Britain and Europe, as well as stealing technology and plotting sabotage and assassination attempts.

“Russia is scaling up its daily hybrid activity against the U.K. and Europe, stretching from the seabed to cyberspace,” she told an audience of computing experts, diplomats, journalists and senior officials.

“One area in sharp focus for us is protecting the data and energy flowing through the critical cables and pipelines in and around British waters,” she added. “We do this by exposing Russia’s intent, motive and underwater capabilities.”

At the same time, she said Russian troops are “going backwards on the battlefield,” with new intelligence suggesting “almost half a million Russian soldiers” have been killed since the February 2022 invasion of Ukraine.

The speech is the latest in a string of warnings from Western spies and intelligence experts that Russia is stepping up hostile activity in a “gray zone” that falls just below the threshold of war.

In recent months, authorities in countries including Sweden, Poland, Denmark and Norway have alleged that hackers linked to Russia targeted their critical infrastructure, including power plants and dams.

The head of the U.K.’s National Cyber Security Centre, Richard Horne, warned last month that hostile states including Russia, China and Iran are behind the most serious cyberattacks the country faces. He said such attacks could increase dramatically if Britain becomes involved in an international conflict.

Keast-Butler said rapid advances in artificial intelligence mean that “the ground beneath our feet is shifting” and there is a “narrowing window for the U.K. and allies to stay ahead” of countries such as China, a science and technology “superpower.”

She argued that there must be an effort “from boardrooms to living rooms” to make cybersecurity “10 times more urgent.”

The spy chief said that GCHQ is developing a plan to “hardwire cutting-edge agentic AI into machine-speed cyber defense.” Harnessed responsibly, she said, AI can help spies “enhance algorithms, translate foreign languages, and find needles in haystacks quicker than ever before.”

Keast-Butler also stressed the importance of international partnerships as U.S. President Donald Trump’s “America First” foreign policy and disregard for longtime allies strains the relationship between London and Washington.

She said the U.K.-U.S. intelligence partnership is “fundamental for the security of both our nations.”

GCHQ, short for Government Communications Headquarters, is the U.K.’s electronic and cyberintelligence agency. It works alongside the domestic security service MI5 and the foreign intelligence agency, MI6.

Keast-Butler, the first woman to head the agency, delivered the GCHQ director’s annual lecture speech at the agency’s World War II headquarters of Bletchley Park, a manor house 45 miles (72 kilometers) northwest of London where hundreds of mathematicians, cryptographers, crossword puzzlers, chess masters and other experts worked to crack Nazi Germany’s supposedly unbreakable secret codes.

Their work both shortened the war and hastened the birth of modern computing.

BLETCHLEY, England (AP) — Artificial intelligence is “an unstoppable force” that is being weaponized in ways that fall just short of traditional warfare, Britain’s cyberspying chief warned Wednesday.

Anne Keast-Butler, director of the communications intelligence agency GCHQ, said Britain and its allies are in “a space between peace and war” and risk losing a conflict in cyberspace against Russia and other adversaries unless they treat cybersecurity with much greater urgency.

“I’ve spent three decades working in National Security. And the risk of miscalculation is as high as I’ve ever seen it,” Keast-Butler said in a speech at a World War II code breaking center near London.

She said that “tech companies are releasing AI-driven innovations at a remarkable pace, with untold consequences, as algorithms are weaponized often just below the threshold of traditional warfare.

“AI is an unstoppable force with great opportunity,” she added. “But it is also a force with risks.”

Keast-Butler singled out Russia as a threat, accusing Moscow of “relentlessly targeting critical infrastructure, democratic processes, supply chains and public trust” in Britain and Europe, as well as stealing technology and plotting sabotage and assassination attempts.

“Russia is scaling up its daily hybrid activity against the U.K. and Europe, stretching from the seabed to cyberspace,” she told an audience of computing experts, diplomats, journalists and senior officials.

“One area in sharp focus for us is protecting the data and energy flowing through the critical cables and pipelines in and around British waters,” she added. “We do this by exposing Russia’s intent, motive and underwater capabilities.”

Keast-Butler said rapid advances in artificial intelligence mean that “the ground beneath our feet is shifting” and there is a “narrowing window for the U.K. and allies to stay ahead” of countries such as China, a science and technology “superpower.”

She argued that there must be an effort “from boardrooms to living rooms” to make cybersecurity “10 times more urgent.”

GCHQ, short for Government Communications Headquarters, is the U.K.’s electronic and cyberintelligence agency. It works alongside the domestic security service MI5 and the foreign intelligence agency, MI6.

The speech is the latest in a string of warnings from Western spies and intelligence experts that Russia is stepping up hostile activity in a “gray zone” that falls just below the threshold of war.

In recent months, authorities in countries including Sweden, Poland, Denmark and Norway have alleged that hackers linked to Russia targeted their critical infrastructure, including power plants and dams.

The head of the U.K.’s National Cyber Security Centre, Richard Horne, warned last month that hostile states including Russia, China and Iran are behind the most serious cyberattacks the country faces. He said such attacks could increase dramatically if Britain becomes involved in an international conflict.

Keast-Butler also stressed the importance of international partnerships as U.S. President Donald Trump’s “America First” foreign policy and disregard for longtime allies strains the relationship between London and Washington.

She said the U.K.-U.S. intelligence partnership is “fundamental for the security of both our nations.”

She delivered the first annual GCHQ director’s lecture speech at the agency’s World War II headquarters of Bletchley Park, a manor house 45 miles (72 kilometers) northwest of London where hundreds of mathematicians, cryptographers, crossword puzzlers, chess masters and other experts worked to crack Nazi Germany’s supposedly unbreakable secret codes.

Their work both shortened the war and hastened the birth of modern computing.

TORONTO (AP) — Canada will buy early warning radar planes built by Sweden’s Saab and Canada’s Bombardier over two American options, Prime Minister Mark Carney announced Wednesday.

Carney said his government has entered negotiations to procure Saab’s Airborne Early Warning & Control Aircraft, which is built on the Canadian-manufactured Bombardier Global 6500 aircraft and will support domestic production.

Carney also noted it is made with 20% U.S. content. The federal government has previously said it’s in the market for six radar aircraft.

Canada joined a major European Union defense fund last year, and Carney has made a point of diversifying its military spending away from the United States.

Equipped with powerful radar, the Saab planes provide situational awareness about aircraft and missile movements for hundreds of miles (kilometers). They can detect hostile activity in the air or from ships are able to direct fighter jets to their targets.

“Saab’s GlobalEye will be a key resource for the Canadian Armed Forces to detect and deter threats across the Arctic,” Carney said.

The other options would have been to buy the E-7A Wedgetail surveillance planes built by U.S. aircraft manufacturer Boeing or the Aeris X by L3Harris.

NATO is also considering the Saab plane over the American options.

Carney has previously said that no more will over 70 cents of every dollar of Canadian military capital spending go to the U.S.

U.S. President Donald Trump’s actions — including launching a trade war and suggesting Canada become the 51st U.S. state — infuriated Canadians and created the political environment for Carney to win the job of prime minister after promising to confront Trump’s increased aggression.

The Canadian government is reviewing the planned purchase of U.S. F-35 fighter jets to explore other options. Carney has said the potential for having more production in Canada is a factor. A proposal by Saab promised that assembly and maintenance of the Saab Gripen fighter jet would take place in Canada.

NEW YORK (AP) — The typical CEO compensation package rose nearly 6% in 2025 to $17.7 million, as company boards rewarded their top executives for bigger profits and higher stock prices, and gave them incentives to stick around and make even more money for shareholders.

The median employee at companies in the S&P 500 earned $89,744, reflecting a 4.7% increase year over year. While that gain outpaced the rate of inflation in 2025, many workers were still feeling pinched by the accumulation of higher prices over the past few years and had to cut corners to make ends meet and run up credit card debt to pay for everyday necessities.

The Associated Press’ CEO compensation survey, which uses data analyzed for The AP by Equilar, included pay data for 337 executives at S&P 500 companies who have served at least two full consecutive fiscal years at their companies, which filed proxy statements between Jan. 1 and April 30.

Here’s a look at some highlights from the survey.

The pay gap

At half the companies in AP’s survey it would take the worker at the middle of the company’s pay scale 200 years to make what the CEO did in one, up from 192 years in last year’s survey. Companies have been required to disclose this so-called pay ratio since 2018.

While the biggest gaps occur at companies where the CEO received compensation loaded with one-time awards of stock, the pay ratio also tends to be highest at companies in industries where wages are typically low. For instance, at Coca-Cola, its CEO earned nearly 1,739 times the median pay of $17,947 for its workers. The CEO at the retailer TJX Cos. makes about 1,774 times what a worker making the company’s median pay does.

Sarah Anderson, who directs the Global Economy Project at the progressive Institute for Policy Studies, noted in an email that there are ballot initiative campaigns in San Francisco and Los Angeles to raise taxes on companies with sizable gaps between CEO and worker pay.

“At a time when working families are struggling with rising costs, it’s obscene to see CEO pay continuing to skyrocket,” Anderson wrote.

Overall, wages and benefits netted by private-sector workers in the U.S. rose 3.4% through 2025, according to the Labor Department. The average worker in the U.S. makes $67,000 a year. That figure rises to $96,000 when benefits such as health care and other insurance are included.

The nature of CEO pay

While many people may think of a pay package as consisting of salary, bonus and some perks, those components make up only a small percentage of pay for the modern CEO.

Many companies have heeded calls from shareholders to tie CEO compensation more closely to performance. As a result, a large proportion of pay packages consist of stock awards, which the CEO often can’t cash in for years, if at all, unless the company meets certain targets, typically a higher stock price or market value or improved operating profits. And if the CEO delivers on those metrics, companies often give them one-time rewards as incentives to stay on and not look for a bigger payday elsewhere.

Shareholders can weigh in on a CEO’s pay package through “say on pay” votes at a company’s annual meeting. But the votes are non-binding and most pay plans pass with overwhelming support. The average “yes” vote at companies in this year’s survey was around 90%.

Big rewards, lofty goals

As CEO pay has grown significantly over the past few decades, criticism of the lofty payouts has largely come from worker advocates and certain members of Congress.

Elon Musk’s pay package is so extraordinary that even the pope weighed in.

Musk, the CEO of Tesla, received compensation valued at $132.3 billion, all in the form of stock awards. To actually get the shares, Musk must meet ambitious targets over the next 10 years for the company’s market value and Tesla’s electric vehicles, as well as his futuristic goals of developing a fleet of robotaxis and an army of humanoid robots.

Tesla did not immediately respond to a request for comment.

Shankh Mitra of Welltower received the second-largest compensation package in the survey at $821.1 million, the bulk of it in stock awards. Since October 2020, when he became CEO of the healthcare real estate investment trust, and October 2025, Welltower’s stock price tripled. Mitra can only receive the full compensation, beyond a $110,000 annual salary, after a 10-year period.

CEO Hock Tan’s pay package at Broadcom, valued at $205.3 million, covers the years 2028-2030 — companies assign a value at the time the package is awarded — and is tied to Tan’s ability to greatly increase the revenue Broadcom generates from artificial intelligence, making it one of the few companies at this time to use AI as a benchmark in its compensation plans.

“Use of AI considerations or metrics in incentive plans has not yet taken hold as a majority practice,” said Kelly Malafis, founding partner at Compensation Advisory Partners, in an email, although she expects that could change going forward.

David Zaslav was at the center of a takeover battle that ended with him selling Warner Bros. to Paramount Skydance for $31 a share, up from $12.54 before reports of Paramount’s interest in a deal came out. For negotiating the deal at a premium and also exceeding certain financial and strategic goals, Warner gave Zaslav a pay package valued at $165 million, fourth largest in the survey. Since becoming CEO in 2007, Zaslav’s compensation has totaled $1.1 billion, according to Equilar.

Big payouts for bankers

CEOs of three the nation’s biggest banks got rewarded for yearslong efforts to retool their companies and revive a stagnant stock price.

Goldman Sachs’ David Solomon’s pay package totaled almost $119 million — including stock valued at $80 million he can receive after five years. Goldman’s board pointed to the 57% gain in the company’s shares, as well as a hefty increase in its earnings per share. Solomon also sold off the company’s Apple Card portfolio after an unsuccessful effort to expand Goldman’s consumer-focused business.

Jane Fraser of Citigroup received a pay package valued at $95.8 million — tops among the 27 women CEOs in this year’s survey and the highest-ever for a woman CEO in the survey’s history. Fraser received a one-time award valued at $25 million in restricted stock and options after being elected Citi’s chairman. She also got a one-time award for overseeing a wholesale reorganization of Citi into a leaner company, including laying off thousands of workers.

Overall, the median compensation for women CEOs in the survey fell 2.6% to $18.1 million, compared to a 6.4% increase for their male counterparts to $17.7 billion.

Wells Fargo gave CEO Charles Scharf a pay package worth $94.5 million after his yearslong effort to lead the bank back from a scandal involving fake bank accounts that landed Wells under federal supervision. And new scandals emerged along the way. The Federal Reserve finally let Wells leave the penalty box last year.

Other notables

In his last year as CEO of the conglomerate Berkshire Hathaway, Warren Buffett received compensation worth $389,488 — down 4% from the year prior.

Meta Platforms CEO Mark Zuckerberg’s compensation was valued at $25.1 million and almost all of it involved costs for the company to provide security for him and his family, as well as the use of corporate aircraft.

Jensen Huang of Nvidia, the most valuable publicly traded company, got a pay package valued at $36.3 million. He didn’t make the AP survey because Nvidia filed its proxy after April 30.

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Editors Dorothea Degen and Paul Harloff, and reporters Bernard Condon, Matt Ott, Alex Veiga, Ken Sweet and Chris Rugaber contributed.

LONDON (AP) — Britain and its allies risk losing a conflict in cyberspace against adversaries such as Russia unless citizens, corporations and governments treat cybersecurity with much greater urgency, a U.K. spy chief is warning.

Anne Keast-Butler, director of the communications intelligence agency GCHQ, will warn Wednesday that Moscow is “relentlessly targeting critical infrastructure, democratic processes, supply chains and public trust” in Britain and Europe. In a speech at a World War II code breaking center near London, she will accuse Russia of stealing technology and plotting sabotage and assassination attempts.

Keast-Butler plans to say that rapid advances in artificial intelligence mean that “the ground beneath our feet is shifting” and there is a “narrowing window for the U.K. and allies to stay ahead” of countries such as China, a science and technology “superpower.”

She plans to argue there must be an effort “from boardrooms to living rooms” to make cybersecurity “10 times more urgent,” according to extracts released in advance by GCHQ, short for Government Communications Headquarters.

It is the latest in a string of warnings from Western spies and intelligence experts that Russia is stepping up hostile activity in a “gray zone” that falls just below the threshold of war.

In recent months, authorities in countries including Sweden, Poland, Denmark and Norway have alleged that hackers linked to Russia targeted their critical infrastructure, including power plants and dams.

The head of the U.K.’s National Cyber Security Centre, Richard Horne, warned last month that hostile states including Russia, China and Iran are behind the most serious cyberattacks the country faces. He said such attacks could increase dramatically if Britain becomes involved in an international conflict.

Keast-Butler plans to stress the importance of international partnerships as U.S. President Donald Trump’s “America First” foreign policy and disregard for longtime allies strains the relationship between London and Washington.

Pointedly, she is delivering the annual GCHQ director’s lecture speech at Bletchley Park, a manor house 45 miles (72 kilometers) northwest of London where hundreds of mathematicians, cryptographers, crossword puzzlers, chess masters and other experts worked to crack Nazi Germany’s supposedly unbreakable secret codes.

Their work both shortened the war and hastened the birth of modern computing.

WASHINGTON (AP) — The Supreme Court on Tuesday rejected a push to avoid a lawsuit alleging that Facebook and Instagram harmed young users, a decision that comes as social media companies increasingly face legal scrutiny.

Parent company Meta Platforms Inc. appealed after Vermont’s highest court allowed a suit filed by its attorney general in 2023 to move forward. The company is facing similar lawsuits from states across the country, accusing it of knowingly designing addictive features.

Meta had argued that it can’t be sued in Vermont court because neither the company nor the app design has specific ties to the state. Vermont countered that the sites’ large number of teen users gives its courts jurisdiction.

The Supreme Court declined to hear the appeal in a brief, unexplained order, as is typical. The procedural decision comes after court losses for Meta and YouTube in social media addiction lawsuits in California and New Mexico.

Vermont’s lawsuit was filed after an investigation by a bipartisan coalition of attorneys general in several states. Newspaper reports based on Meta’s own research also found that the company knew about the harms Instagram can cause teenagers — especially teen girls — when it comes to mental health and body image issues. One internal study cited 13.5% of teen girls saying Instagram makes thoughts of suicide worse and 17% of teen girls saying it makes eating disorders worse.

Almost all teens ages 13 to 17 in the U.S. report using a social media platform, with about a third saying they use social media “almost constantly,” according to the Pew Research Center.

Meta, for its part, has said that it has already introduced dozens of tools to support teens and their families and suggested it would have worked with the states on standards for youth social media use.

Vermont Attorney General Charity Clark applauded the decision, saying it affirms “that companies that choose to do business in Vermont, like Meta, can be held accountable when they harm kids.”

NEW YORK (AP) — PayPal helped invent online checkout. Nearly three decades later, it’s struggling to defend its turf.

The iconic online payments company is facing its biggest challenge in nearly three decades of existence. Its core business of customers using the app to check out when shopping online is barely growing and new management has bluntly warned investors that “significant changes” will be needed to fix the company’s problems.

One of the biggest success stories of the original dot-com era, PayPal has seen its territory steadily conquered by new and existing competitors, particularly Apple, Shopify, the buy now, pay later companies like Affirm and Klarna, and peer-to-peer money transfer services like Cash App and Zelle, particularly in the past five years.

As a result, PayPal’s stock has fallen nearly 40% in the past 12 months. The stock, which soared during the pandemic as millions of Americans started shopping online for groceries and other necessities, has plunged roughly 80% in the past five years as investors worried that PayPal missed an opportunity to leverage its name recognition and dominance in online payments and allowed its competitors to take market share that will be hard to recover.

Investors’ concerns are not about profitability, although PayPal did warn investors that 2026 profits would be down from the previous year. The concerns lie more with how will PayPal grow and maintain its market with increasing competition.

PayPal said in its first-quarter earnings report that branded checkout — the company’s most profitable business by margin — grew just 2%. While the company noted there had been a slowdown in its European division and other discretionary purchases, a growth of only 2% in one of the fastest growing industries alarmed investors and shares dropped nearly 8%.

The pressures on PayPal’s business have led to some dramatic changes at the top of the company. The board ousted CEO Alex Chriss in February and replaced him with Enrique Lores, the former president and CEO of HP Inc., and a member of PayPal’s board. Lores announced a cost-cutting plan that includes reorganizing the company into three divisions and relying more on artificial intelligence. He told investors at May’s shareholder meeting he expects to update them on the company’s turnaround plan “in a few months.”

The biggest threat to PayPal’s dominance has been Apple and its Apple Pay service. Apple rolled out Apple Pay in 2014, which allowed Apple customers to store virtual credit and debit cards on their devices to pay online. The company also integrated tap-to-pay technologies into iPhones and the Apple Watch to allow Apple users to pay for items at stores in person.

So, while PayPal has embedded itself as a checkout button on countless merchant websites, that checkout button has become less useful when a customer can store their payment information on their phone and pay using a fingerprint or a glance of their face, analysts said.

This has caused customers to drift away from PayPal as a default payment method. PayPal in 2019 controlled roughly 9% of e-commerce in the U.S. and globally, with Apple Pay having a 3% market share, according to analysts at UBS. Six years later, Apple overtook PayPal as the dominant checkout option, and its market share is expected to continue to grow as Apple rolls out Apple Pay to non-iOS users.

There is also the growing popularity of buy now, pay later companies such as Klarna and Affirm. While PayPal now offers buy now, pay later services like its pay-in-four plan, and longer-term monthly payment plans, it lags its major competitors including Affirm, which was founded by one of PayPal’s founders, Max Levchin.

“PayPal has had a lot of trouble evolving from being just a way to pay on your desktop computer,” said Sanjay Sakhrani, an analyst who covers credit cards and payment methods at investment bank Keefe Bruyette & Woods.

Going forward, investors worry that if the branded checkout business continues to lag behind it competitors, it could spell future trouble for PayPal. Wall Street analysts have questioned whether Venmo or Braintree may be spun off from the company, noting that Lores was previously responsible for spliting HP into two separate companies.

Earlier this year, PayPal’s stock jumped briefly on unconfirmed reports that the payments company Stripe was interested in acquiring all or parts of PayPal.

Just a few years ago, America’s public schools were rushing to get every child a laptop. Los Angeles middle school teacher Anna Soffer remembers it well: “The idea was that technology is the future, so we need to put tech in every child’s hands.”

Now, the conversation has flipped. After pouring billions of dollars into laptops, tablets and learning apps, many schools are facing a digital reckoning. Classrooms have become saturated with screens, and a growing number of parents, teachers and school districts are saying it is time to scale back.

“The Chromebook is just a world of distraction,” says Soffer, who teaches sixth-grade English and history. She favors pen-and-paper assignments but is required to use laptops and online apps for certain activities. “Every day, I’m battling, ’Who would you rather listen to, Ms. Soffer or Minecraft?’”

The Los Angeles Unified School District, where Soffer teaches, recently became the first major school district to say it will stop giving devices to its youngest students. It is part of a new screen time policy taking effect in the fall across the country’s second-largest school system.

A sweeping resolution passed last month by the Los Angeles school board requires the district to eliminate devices until second grade; set daily and weekly screen limits for all higher grades; block YouTube on school devices; and ban the use of devices at lunch and recess in elementary and middle school. The district will also audit its education technology contracts, which the teachers union says amount to $1.6 billion.

The Los Angeles crackdown is adding momentum to calls for reform emerging around the country. In many cases, parents lobbied a few years ago for school cellphone bans, which have now become the norm. Realizing phones weren’t the only classroom distraction, they pivoted to a new target: school-issued devices.

The campaign for change is becoming a public policy issue. At least 14 states have proposed laws to limit screen time in schools, according to Ballotpedia. The federal government issued an advisory last week warning that excessive screen use among youth is becoming a growing public health concern.

Parents say school-issued devices undermine screen limits at home

In Los Angeles, concerned parents last year formed a group, Schools Beyond Screens, and pressured the district by speaking out at school board meetings, on social media and in private talks with administrators. Many are frustrated by trying to curb screen time at home, only to have screens mandated by school.

As a mother of three, Katie Pace does everything in her power to limit screens. There is one family iPad and one television at home, no screen time during the week and no screens allowed in bedrooms. Her eighth grade daughter, Clementine, does not have a phone.

But as soon as Clementine gets on the Wi-Fi-enabled school bus, her day takes a turn for the digital.

For the 30-minute ride to school, Clementine watches YouTube videos on her school Chromebook.

In Spanish class, assignments are on the app Duolingo, but many students use Google Translate for answers, Clementine said. Often, kids are playing games on their phones, which are supposed to be locked away. In algebra, Clementine writes with her finger on a touch screen to solve equations. In history, quizzes, tests and writing assignments are on the computer.

Almost all homework is online. Until recently, Clementine would come home and read a book, her mother said, but not anymore. On her daughter’s device history, Pace sees she spends hours a day streaming music, making Spotify playlists, and watching makeup tutorials and cat videos on YouTube.

“It makes me furious,” said Pace, a member of Schools Beyond Screens. “My daughter went to middle school and was sent home with a screen addiction in her backpack.”

The pandemic supercharged student access to devices

A push to put a device in every child’s hand and close the “digital divide” started over a decade ago, but it accelerated during the COVID-19 pandemic.

Overnight, education shifted online in March 2020. Schools raced to get kids the devices needed to connect to school. When the 2021-2022 school year started, 96% of U.S. public schools reported they had given digital devices to students who needed them, according to the National Center for Education Statistics.

Many schools switched funding away from textbooks, workbooks and paper printouts to digital alternatives. Educational technology, or “edtech,” exploded into a multibillion-dollar industry.

“During the pandemic, getting kids devices was a lifeline. Now, it’s time that we reset,” said Nick Melvoin, the LAUSD school board member who drafted the new resolution.

Melvoin estimates that few Los Angeles classrooms are using screens effectively in ways that benefit learning. Too often, he said, teachers are replacing instruction with online apps and using screens “as a crutch.”

Some schools are introducing new limits

The challenge, educators say, is that technology has become so entwined with learning, especially for older students, that unplugging from screens at school is complicated.

In the affluent Philadelphia suburb of Lower Merion, parents launched a petition campaign for the right to opt their children out of digital devices during school, citing questions about edtech’s benefits. The district has said that opting out is not possible.

“If there’s really no evidence that it helps, and in fact there’s evidence that it’s harmful, what are we doing? Test scores are at their lowest point,” said Alex Bird Becker, one of the founders of the group PA Unplugged.

Other schools are finding that it makes financial sense to stop sending a device home with every child.

Fresno Unified School District, the third-largest in California, is spending $4 million a year to repair and replace laptops. Partly to cut costs, the district has told its 40,000 elementary school students to return their take-home laptops and it will shift computer access to in-class only in the fall, spokesperson A.J. Kato said.

The Simi Valley Unified School District, near Los Angeles, stopped sending devices home for its younger students this year, partly because of costly repairs but also because they were being used for “inappropriate Google searches” and video games, according to a memo to parents. The district now stores the devices in carts at school.

A group of parents in Arlington, Virginia, gathered on a recent Saturday night to share their children’s struggles with screen addictions and other side effects of school-issued devices.

“None of us are Luddites. I know that technology adds value, but I also don’t want my son on YouTube all the time,” said LuAnn Oliver, who hosted the group in her living room. Her sixth grade son struggles to keep track of online assignments and resist the temptation the iPad offers for video games. “We get reports on websites he’s visited. He’s visiting a game site in nearly every class.”

The Arlington Public Schools district has stopped giving iPads out before first grade and is setting new limits in elementary school, but students in 6th to 12th grades will still be required to have school-issued devices.

Another mother, Jenny Sullivan, said she has noticed her fourth grade son capitalizing random letters and not getting corrected because there is so little work on paper. She also worries about social implications: Her sixth grader doesn’t want to go to the after-school program because everyone is on their iPad. “I’d rather be home,” he tells his mother.

After a three-hour gathering, the parents made a plan to approach the school in the fall with a unified request to “opt out of technology and opt in to textbooks and paper.”

“Ten years from now,” said one of the mothers, Kristina Jackson, “I can’t imagine us looking back with any other reaction than: How could we have been so naive that we just handed these devices to our kids.”

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Associated Press writer Sharon Lurye contributed to this report from Philadelphia.

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The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

Just a few years ago, America’s public schools were rushing to get every child a laptop. Los Angeles middle school teacher Anna Soffer remembers it well: “The idea was that technology is the future, so we need to put tech in every child’s hands.”

Now, the conversation has flipped. After pouring billions of dollars into laptops, tablets and learning apps, many schools are facing a digital reckoning. Classrooms have become saturated with screens, and a growing number of parents, teachers and school districts are saying it is time to scale back.

“The Chromebook is just a world of distraction,” says Soffer, who teaches 6th grade English and history. She favors pen-and-paper assignments but is required to use laptops and online apps for certain activities. “Every day, I’m battling, ’Who would you rather listen to, Ms. Soffer or Minecraft?’”

The Los Angeles Unified School District, where Soffer teaches, recently became the first major school district to say it will stop giving devices to its youngest students. It is part of a new screen-time policy taking effect in the fall across the country’s second-largest school system.

A sweeping resolution passed last month by the Los Angeles school board requires the district to eliminate devices until second grade; set daily and weekly screen limits for all higher grades; block YouTube on school devices; and ban the use of devices at lunch and recess in elementary and middle school. The district will also audit its education technology contracts, which the teachers union says amount to $1.6 billion.

The Los Angeles crackdown is adding momentum to calls for reform emerging around the country. In many cases, parents lobbied a few years ago for school cellphone bans, which have now become the norm. Realizing phones weren’t the only classroom distraction, they pivoted to a new target: school-issued devices.

The campaign for change is becoming a public policy issue. At least 14 states have proposed laws to limit screen time in schools, according to Ballotpedia. The federal government issued an advisory last week warning that excessive screen use among youths is becoming a growing public health concern.

Parents say school-issued devices undermine screen limits at home

In Los Angeles, concerned parents last year formed a group, Schools Beyond Screens, and pressured the district by speaking out at school board meetings, on social media and in private talks with administrators. Many are frustrated by trying to curb screen time at home, only to have screens mandated by school.

As a mother of three, Katie Pace does everything in her power to limit screens. There is one family iPad and one television at home, no screen time during the week and no screens allowed in bedrooms. Her 8th grade daughter, Clementine, does not have a phone.

But as soon as Clementine gets on the wifi-enabled school bus, her day takes a turn for the digital.

For the 30-minute ride to school, Clementine watches YouTube videos on her school Chromebook.

In Spanish class, assignments are on the app Duolingo, but many students use Google Translate for answers, Clementine said. Often, kids are playing games on their phones, which are supposed to be locked away. In algebra, Clementine writes with her finger on a touch screen to solve equations. In history, quizzes, tests and writing assignments are on the computer.

Almost all homework is online. Until recently, Clementine would come home and read a book, her mother said, but not anymore. On her daughter’s device history Pace sees she spends hours a day streaming music, making Spotify playlists, and watching makeup tutorials and cat videos on YouTube.

“It makes me furious,” said Pace, a member of Schools Beyond Screens. “My daughter went to middle school and was sent home with a screen addiction in her backpack.”

The pandemic supercharged student access to devices

A push to put a device in every child’s hand and close the “digital divide” started over a decade ago but it accelerated during the COVID-19 pandemic.

Overnight, education shifted online in March 2020. Schools raced to get kids the devices needed to connect to school. When the 2021-2022 school year started, 96% of U.S. public schools reported they had given digital devices to students who needed them, according to the National Center for Education Statistics.

Many schools switched funding away from textbooks, workbooks and paper printouts to digital alternatives. Educational technology, or edtech, exploded into a multibillion dollar industry.

“During the pandemic, getting kids devices was a lifeline. Now, it’s time that we reset,” said Nick Melvoin, the LAUSD school board member who drafted the new resolution.

Melvoin estimates that few Los Angeles classrooms are using screens effectively in ways that benefit learning. Too often, he said, teachers are replacing instruction with online apps and using screens “as a crutch.”

Some schools are introducing new limits

The challenge, educators say, is that technology has become so entwined with learning, especially for older students, that unplugging from screens at school is complicated.

In the affluent Philadelphia suburb of Lower Merion, parents launched a petition campaign for the right to opt their children out of digital devices during school, citing questions about edtech’s benefits. The district has said that opting out is not possible.

“If there’s really no evidence that it helps, and in fact there’s evidence that it’s harmful, what are we doing? Test scores are at their lowest point,” said Alex Bird Becker, one of the founders of the group PA Unplugged.

Other schools are finding that it makes financial sense to stop sending a device home with every child.

Fresno Unified School District, the third-largest in California, is spending $4 million a year to repair and replace laptops. Partly to cut costs, the district has told its 40,000 elementary school students to return their take-home laptops and will shift computer access to in-class only in the fall, spokesperson AJ Kato said.

The Simi Valley Unified School District, near Los Angeles, stopped sending devices home for its younger students this year partly because of costly repairs, but also because they were being used for “inappropriate Google searches” and video games, according to a memo to parents. The district now stores the devices in carts at school.

A group of parents in Arlington, Virginia, gathered on a recent Saturday night to share their children’s struggles with screen addictions and other side effects of school-issued devices.

“None of us are Luddites. I know that technology adds value, but I also don’t want my son on YouTube all the time,” said LuAnn Oliver, who hosted the group in her living room. Her 6th-grade son struggles to keep track of online assignments and resist the temptation the iPad offers for video games. “We get reports on websites he’s visited. He’s visiting a game site in nearly every class.”

The Arlington School District has stopped giving iPads out before first grade and is setting new limits in elementary school, but students in 6th to 12th grades will still be required to have school-issued devices.

Another mother, Jenny Sullivan, said she has noticed her 4th grade son capitalizing random letters and not getting corrected because there is so little work on paper. She also worries about social implications: Her 6th grader doesn’t want to go to the afterschool program because everyone is on their iPad. “I’d rather be home,” he tells his mother.

After a three-hour gathering, the parents made a plan to approach the school in the fall with a unified request to “opt-out of technology and opt-in to textbooks and paper.”

“Ten years from now,” said one of the mothers, Kristina Jackson, “I can’t imagine us looking back with any other reaction than: How could we have been so naive that we just handed these devices to our kids.”

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Associated Press writer Sharon Lurye contributed to this report from Philadelphia.

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The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.