Spotify fills playlists with fake music – while CEO invests millions in military AI

The future of AI

Published July 1, 2025 – By Editorial staff
Spotify CEO Daniel Ek accused of diverting artist royalties to military AI development.

Swedish streaming giant Spotify promotes anonymous pseudo-musicians and computer-generated music to avoid paying royalties to real artists, according to a new book by music journalist Liz Pelly.

Meanwhile, criticism grows against Spotify CEO Daniel Ek, who recently invested over €600 million in a company developing AI technology for future warfare.

In the book Mood Machine: The Rise of Spotify and the Costs of the Perfect Playlist, Liz Pelly reveals that Spotify has long been running a secret internal program called Perfect Fit Content (PFC). The program creates cheap, generic background music – often called "muzak" – through a network of production companies with ties to Spotify. This music is then placed in Spotify's popular playlists, often without crediting any real artists.

The program was tested as early as 2010 and is described by Pelly as Spotify's most profitable strategy since 2017.

"But it also raises worrying questions for all of us who listen to music. It puts forth an image of a future in which – as streaming services push music further into the background, and normalize anonymous, low-cost playlist filler – the relationship between listener and artist might be severed completely", Pelly writes.

By 2023, the PFC program controlled hundreds of playlists. More than 150 of them – with names like Deep Focus, Cocktail Jazz, and Morning Stretch – consisted entirely of music produced within PFC.

"Only soulless AI music will remain"

A jazz musician told Pelly that Spotify asked him to create an ambient track for a few hundred dollars as a one-time payment. However, he couldn't retain the rights to the music. When the track later received millions of plays, he realized he had likely been deceived.

Social media criticism has been harsh. One user writes: "In a few years, only soulless AI music will remain. It's an easy way to avoid paying royalties to anyone."

"I deleted Spotify and cancelled my subscription", comments another.

Spotify has previously faced criticism for similar practices. The Guardian reported in February that the company's Discovery Mode system allows artists to gain more visibility – but only if they agree to receive 30 percent less payment.

Spotify's CEO invests in AI for warfare

Meanwhile, CEO Daniel Ek has faced severe criticism for investing over €600 million through his investment firm Prima Materia in the German AI company Helsing. The company develops software for drones, fighter aircraft, submarines, and other military systems.

– The world is being tested in more ways than ever before. That has sped up the timeline. There’s an enormous realisation that it’s really now AI, mass and autonomy that is driving the new battlefield, Ek commented in an interview with Financial Times.

With this investment, Ek has also become chairman of Helsing. The company is working on a project called Centaur, where artificial intelligence will be used to control fighter aircraft.

The criticism was swift. Australian producer Bluescreen explained in an interview with music site Resident Advisor why he chose to leave Spotify – a decision several other music creators have also made.

– War is hell. There’s nothing ethical about it, no matter how you spin it. I also left because it became apparent very quickly that Spotify’s CEO, as all billionaires, only got rich off the exploitation of others.

Competitor chooses different path

Spotify has previously been questioned for its proximity to political power. The company donated $150,000 to Donald Trump's inauguration fund in 2017 and hosted an exclusive brunch the day before the ceremony.

While Spotify is heavily investing in AI-generated music and voice-controlled DJs, competitor SoundCloud has chosen a different path.

– We do not develop AI tools or allow third parties to scrape or use SoundCloud content from our platform for AI training purposes, explains communications director Marni Greenberg.

– In fact, we implemented technical safeguards, including a 'no AI' tag on our site to explicitly prohibit unauthorised use.

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Record layoffs as AI takes over jobs in the US

The future of AI

Published November 10, 2025 – By Editorial staff

In October, American companies announced over 153,000 layoffs, the highest figure for the month in over 20 years. The increased use of AI technology is identified as a key factor behind the extensive workforce reductions.

The American outplacement firm Challenger, Gray & Christmas reports that October 2025 became a record month for layoffs with over 153,000 jobs eliminated, nearly three times more than the same month the previous year.

The technology and warehouse sectors are hit hardest, where AI combined with weaker demand and increased costs contributes to the cutbacks.

Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes, says Andy Challenger, chief revenue officer at Challenger, Gray & Christmas.

He also warns that those now losing their jobs will find it harder to quickly secure new employment, which could further weaken the labor market.

Extensive cutbacks at major companies

Companies such as Target, Amazon, Paramount Skydance, Starbucks, Delta Air Lines, CarMax, Rivian, and Molson Coors have collectively eliminated tens of thousands of positions.

For example, Amazon recently laid off 14,000 employees and Target approximately 1,800. Several companies cite automation as a factor, as well as the need to reduce middle management positions.

UPS has also increased its planned workforce reductions by 70 percent to 34,000 people, stating that higher productivity thanks to automation makes this possible.

In total, over one million jobs have been eliminated in the US so far this year. Plans for new hires are at their lowest since 2011, and many analysts expect a weaker labor market during 2025.

It’s possible with rate cuts and a strong showing in November, companies may make a late season push for employees, but at this point, we do not expect a strong seasonal hiring environment in 2025, says Challenger in his report.

Government shutdown complicates matters

Additionally, it has been difficult to assess the US labor market's development due to the federal government shutdown in the country – which has now become the longest ever.

Official economic statistics have not been released since early October, including the Department of Labor's closely watched employment report, which includes unemployment figures and monthly wage development data.

Federal Reserve Chair Jerome Powell noted during a press conference in October that private data cannot replace government figures, which are widely regarded as the gold standard for measuring the world's largest economy.

The continued absence of government figures may also negatively impact monetary policy and jeopardize future interest rate cuts in the US.

Musk plans data centers in space using Starlink satellites

The future of AI

Published November 2, 2025 – By Editorial staff
Photo: Space X

Elon Musk's space company SpaceX announces plans to build data centers in space based on Starlink satellites. Interest in space-based data storage is surging among tech giants as artificial intelligence demands increasingly more computing power.

Artificial intelligence is driving a growing need for data storage and processing power, prompting several tech companies to turn their attention to space. After former Google CEO Eric Schmidt acquired space company Relativity Space in May, and Amazon founder Jeff Bezos predicted gigawatt-scale data centers in space within 10 to 20 years, Elon Musk is now entering the race.

In a post on social media platform X, Musk explained that SpaceX satellites could be used for this purpose. "Simply scaling up Starlink V3 satellites, which have high speed laser links would work. SpaceX will be doing this", he wrote in response to an article about the potential for space-based data centers.

Musk's announcement dramatically raises the profile of this emerging industry. SpaceX's Starlink constellation is already the world's dominant space-based infrastructure, and the company has demonstrated it can profitably deliver high-speed broadband to millions of customers worldwide.

Free energy and no environmental costs

Advocates for space-based data centers highlight clear advantages: unlimited and free energy from the sun, as well as the absence of environmental costs associated with building these facilities on Earth, where opposition to energy-intensive data centers has begun to grow.

Critics argue, however, that it is economically impractical to build such facilities in space and that proponents underestimate the technology required to make it work.

Caleb Henry, research director at analytics firm Quilty Space, believes the development is worth watching closely.

— The amount of momentum from heavyweights in the tech industry is very much worth paying attention to. If they start putting money behind it, we could see another transformation of what's done in space, he says in an interview.

Tenfold capacity

SpaceX's current Starlink V2 mini satellites have a maximum download capacity of approximately 100 Gbps. The upcoming V3 satellite is expected to increase this capacity tenfold, to 1 Tbps. This is not an unprecedented capacity for individual satellites – telecom company Viasat has built a geostationary satellite with the same capacity that will soon be launched – but it is unprecedented at the scale SpaceX is planning.

The company intends to launch around 60 Starlink V3 satellites with each Starship rocket launch. These launches could occur as early as the first half of 2026, as SpaceX has already tested a satellite dispenser on Starship.

— Nothing else in the rest of the satellite industry that comes close to that amount of capacity, Henry notes.

Exactly what a "scaling up" of Starlink V3 satellites would look like is not clear, but the development speaks for itself. The first operational Starlink satellites were launched just over five years ago with a mass of approximately 300 kg and a capacity of 15 Gbps. Starlink V3 satellites will likely weigh 1,500 kg.

Musk praises Google’s quantum breakthrough: “Starting to become relevant”

The future of AI

Published October 23, 2025 – By Editorial staff
Google's quantum computer chip Willow running the Quantum Echoes algorithm is 13,000 times faster than classical supercomputers.

Google has developed a quantum computing algorithm that, according to the company, opens up practical applications in areas including pharmaceutical research and artificial intelligence. The new algorithm is several thousand times faster than classical supercomputers.

Google announced on Wednesday that the company has successfully developed and verified the Quantum Echoes algorithm on its Willow quantum computing chip. The algorithm is 13,000 times faster than the most advanced classical computing algorithms running on supercomputers.

According to the company's researchers, Quantum Echoes could be used in the future to measure molecular structures, which could facilitate the development of new pharmaceuticals. The algorithm may also help identify new materials in materials science.

Another application is generating unique datasets for training AI models, particularly in areas such as life sciences where available datasets are limited.

— If I can't prove that data is correct, how can I do anything with it?, explained Google researcher Tom O'Brien about the importance of the algorithm being verifiable.

Details about Quantum Echoes were published in the scientific journal Nature. Entrepreneur Elon Musk congratulated Google on X and noted that quantum computing is starting to become relevant.

Alphabet's Google is competing with other tech giants such as Amazon and Microsoft to develop quantum computers that can solve problems beyond the reach of today's computers.

Over half a billion Chinese users embrace generative AI

The future of AI

Published October 22, 2025 – By Editorial staff
AI services are used for intelligent search, content creation, as productivity tools, and in smart hardware.

The number of users of generative artificial intelligence in China has increased sharply during the first half of 2025. In June, 515 million Chinese people had access to AI services – an increase of 266 million in six months, according to official Chinese figures.

The data comes from a report presented on Saturday by the China Internet Network Information Center. It notes that domestically developed AI models have become popular among users.

A survey included in the report shows that over 90 percent of users say they prefer Chinese AI models.

Generative AI is being used in areas such as intelligent search, content creation, productivity tools and smart hardware. The technology is also being tested in agriculture, manufacturing and research.

The majority of users are young and middle-aged with higher education. Among users, 74.6 percent are under 40 years old, while 37.5 percent hold college, bachelor's or higher degrees.

The report claims that China has become increasingly important in the global AI field. As of April, the country had filed approximately 1.58 million AI-related patent applications, representing 38.58 percent of the global total – the most in the world.