Massachusetts Student to Plead Guilty in PowerSchool Data Breach Affecting Millions

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A 19-year-old college student from Massachusetts has agreed to plead guilty to hacking education software provider PowerSchool, in a breach that compromised data on tens of millions of students and teachers. The breach led to ransom demands targeting both the company and individual school districts.

Matthew Lane, a student at Assumption University in Worcester, is accused of stealing sensitive data by gaining unauthorized access to PowerSchool’s systems using login credentials belonging to a contractor. Prosecutors say he then transferred the stolen data to a server hosted in Ukraine in December 2024.

Shortly afterward, PowerSchool received a $2.85 million bitcoin ransom demand threatening to expose names, addresses, Social Security numbers, and other personal details of more than 60 million students and 10 million teachers unless the company complied. PowerSchool disclosed the breach in January 2025 and admitted to paying a ransom to prevent the data from being leaked.

Lane’s case is significant as it is the first time a suspect has been publicly linked to the breach, which impacted PowerSchool — a platform used by over 18,000 schools across North America. U.S. Attorney Leah Foley condemned Lane’s actions, saying they “instilled fear in parents that their kids’ information had been leaked into the hands of criminals – all to put a notch in his hacking belt.”

Court documents reveal that Lane also conspired in a previous cyber extortion scheme involving a telecommunications company, demanding a $200,000 ransom. He now faces charges of cyber extortion, aggravated identity theft, and unauthorized access to protected computers, carrying a mandatory minimum sentence of two years in prison.

Lane’s attorney did not comment on the plea deal, and PowerSchool has not disclosed further details beyond confirming ongoing extortion attempts aimed at multiple school districts affected by the breach.

Tesla to Launch Robotaxi Trial in Austin by End of June, Says Elon Musk

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Tesla is preparing to begin its much-anticipated robotaxi pilot program in Austin, Texas, by the end of June, CEO Elon Musk confirmed in an interview with CNBC. The trial marks a significant milestone for the electric carmaker’s shift toward autonomous driving and AI-driven products.

Initially, Tesla plans to deploy about 10 self-driving vehicles in select “safest” parts of Austin, with the goal of scaling up to approximately 1,000 cars over the following months. The launch comes at a critical time for Tesla, as global sales have slowed amid growing EV competition and mounting scrutiny of Musk’s political affiliations and side ventures.

Musk emphasized that Tesla’s long-term future hinges on autonomy and its humanoid robot project, Optimus. “The only things that matter in the long term are autonomy and Optimus,” he stated, underlining the strategic pivot away from building a low-cost EV platform.

The robotaxi launch will face close examination from the U.S. National Highway Traffic Safety Administration (NHTSA), which is currently investigating incidents involving Tesla’s Full Self-Driving (FSD) software, particularly in low-visibility conditions. The regulator recently asked Tesla to detail how its robotaxis will operate in adverse weather.

Meanwhile, Musk revealed that Tesla is in licensing discussions with major automakers interested in using its FSD software — a potential revenue stream that could help commercialize the robotaxi platform faster.

Beyond Tesla, Musk’s AI startup xAI is also making headlines. The company is expanding a massive supercomputer cluster named “Colossus” in Memphis, Tennessee, which will feature one million of Nvidia’s Blackwell chips — part of a broader plan to train advanced AI models. xAI recently acquired a 1-million-square-foot property in Memphis to support the buildout.

While a merger between Tesla and xAI is not currently planned, Musk did not rule it out entirely, stating it would require shareholder approval if it were to move forward.

China Threatens Legal Action Over U.S. Chip Restrictions Targeting Huawei

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China has issued a sharp warning, stating that it may pursue legal consequences against individuals or organizations that participate in enforcing or complying with U.S. restrictions aimed at limiting the use of advanced Chinese semiconductors.

The statement, released by China’s Ministry of Commerce, comes in response to new U.S. guidance issued last week. That guidance warned companies they may violate U.S. export controls if they use Ascend AI chips made by Shenzhen-based tech giant Huawei.

China accused the U.S. of engaging in “discriminatory restrictive measures” and warned of “corresponding legal liabilities” for those who assist or implement such policies. The ministry urged Washington to respect international trade laws and to stop actions that disrupt global supply chains or unfairly target Chinese firms.

The escalation reflects mounting tensions in the global tech war between the U.S. and China. Huawei, which has long been a focal point in this dispute, continues to face export restrictions over alleged national security concerns. The new U.S. advisory targets the AI segment — a crucial area of technological competition — where Huawei’s Ascend chips are gaining traction.

While the Chinese statement did not specify what form legal action might take, the warning suggests that Beijing could respond with domestic legal challenges or retaliatory trade and regulatory measures against companies perceived as cooperating with U.S. sanctions.