The Federal Trade Commission (FTC) has raised concerns about the competitive risks posed by collaborations between major technology companies and developers of generative AI tools. In a staff report issued Friday, the agency pointed to partnerships such as Microsoft’s investment in OpenAI and similar alliances involving Amazon, Google, and Anthropic as potentially harmful to market competition, according to TechCrunch.
FTC Chair Lina Khan warned that these collaborations could create barriers for smaller startups, limit access to crucial AI tools, and expose sensitive information. ‘These partnerships by big tech firms can create lock-in, deprive start-ups of key AI inputs, and reveal sensitive information that undermines fair competition,’ Khan stated.
The report specifically highlights the role of cloud service providers like Microsoft, Amazon, and Google, which provide essential resources such as computing power and technical expertise to AI developers. These arrangements could restrict smaller firms’ access to these critical resources, raise business switching costs, and allow cloud providers to gain unique insights into sensitive data, potentially stifling competition.
Microsoft defended its partnership with OpenAI, emphasising its benefits to the industry. ‘This collaboration has enabled one of the most successful AI startups in the world and spurred unprecedented technology investment and innovation,’ said Rima Alaily, Microsoft’s deputy general counsel. The FTC report underscores the need to address the broader implications of big tech’s growing dominance in generative AI.
Taiwan Semiconductor Manufacturing Co (TSMC) is facing significant challenges in bringing its most advanced chip technology to its new Arizona plant, the company’s CEO, C.C. Wei, said. Complex regulatory hurdles, labour shortages, and supply chain gaps have slowed progress, making it unlikely for the US factory to match Taiwan’s production timeline for cutting-edge chips. Wei noted that the Arizona project has already taken twice as long as similar facilities in Taiwan.
TSMC is investing $65 billion in three massive factories in Arizona, with support from the US government, including a $6.6 billion grant. However, Wei highlighted the high costs of compliance, including $35 million spent on establishing regulatory guidelines, as well as the logistical strain of shipping essential chemicals like sulfuric acid from Taiwan. Labour shortages have further complicated the project, requiring the relocation of workers from Texas and driving up costs.
Despite the obstacles, Wei expressed confidence in the factory’s ability to deliver high-quality chips, pointing to recent progress in producing advanced 4-nanometer chips for US clients. While most of TSMC’s cutting-edge manufacturing will remain in Taiwan, the Arizona plant marks a critical step in the US’s effort to diversify its semiconductor supply chain and reduce dependence on Asia.
The incoming Trump administration is set to shape the future of cryptocurrency and blockchain technology in the United States with a wave of key appointments and nominations. As President-elect Donald Trump prepares to take office, crypto advocates are hopeful that the new leadership will take a friendlier stance toward the industry, marking a departure from years of lawsuits and enforcement actions.
Among the prominent appointees, billionaire hedge fund manager Scott Bessent, slated to be Treasury Secretary, has voiced strong support for crypto, calling it “about freedom.” Commerce Secretary nominee Howard Lutnick, who leads Cantor Fitzgerald, is an active bitcoin proponent, while Elon Musk, heading the new Department of Government Efficiency (DOGE), has a well-documented history of championing cryptocurrencies like bitcoin and dogecoin. Vivek Ramaswamy, a former presidential candidate, will work alongside Musk at DOGE, with a focus on integrating bitcoin into broader investment portfolios.
David Sacks, a former PayPal executive and crypto investor, was named the administration’s AI and crypto czar, tasked with creating a long-sought legal framework for digital assets. Vice President-elect J.D. Vance and members of the Trump family, including Eric Trump, Donald Trump Jr., and Barron Trump, have also signalled strong support for cryptocurrency, further solidifying the administration’s pro-crypto stance. With SEC Chair nominee Paul Atkins advocating for deregulation, the industry is optimistic about a more innovation-friendly approach.
The Trump administration’s apparent focus on fostering a robust US crypto industry has already garnered attention, including a sold-out crypto-themed ball in Washington. While critics voice concerns about conflicts of interest and regulatory gaps, supporters believe these appointments could position the US as a global leader in cryptocurrency and blockchain technology.
As a potential US ban on TikTok looms, advertisers dependent on the platform are scrambling to prepare contingency plans. With a January 19 deadline for ByteDance, the Chinese parent company of TikTok, to sell its US assets or face a ban, many marketers are facing the reality that the app may soon be inaccessible. This has led to a sense of urgency, with some industry professionals describing the situation as a “hair on fire” moment.
TikTok, which has become a key player in US digital advertising, particularly among younger audiences, may lose over $11 billion in annual ad revenue if the ban goes through. Most of this ad spend would likely shift to platforms like Meta’s Instagram and Alphabet’s YouTube Shorts, where many advertisers are already established. Despite the uncertainty, TikTok continued to pitch new advertising features and planned its presence at major global events like the World Economic Forum in Davos.
In the face of potential shutdown, many influencers and brands are downloading their data in a last-ditch effort to preserve content and advertising materials. TikTok has offered favourable refund terms to advertisers, though some still question the platform’s future in the US. This heightened uncertainty marks a stark contrast to the optimism advertisers held just weeks ago, when many expected a resolution before the ban could take effect.
TikTok’s growing influence in US advertising, particularly in e-commerce, has been notable, with ad spending on the platform increasing rapidly. Despite challenges, the app’s powerful ability to drive sales through influencers and short-form video content has made it a favourite among advertisers looking to tap into the youth market. As the deadline approaches, all eyes are on whether the incoming administration will intervene to prevent TikTok’s shutdown.
TikTok’s future in the US grew more uncertain this week as officials suggested its Chinese owner, ByteDance, should have more time to sell the app and prevent a ban. With the clock ticking toward Sunday’s deadline, key figures from both political sides urged for a 90-day extension to allow for a divestiture. US Representative Mike Waltz, who was appointed as Trump’s national security adviser, indicated that the new administration would take steps to keep TikTok operational if substantial progress is made in securing a deal.
Senate Majority Leader Chuck Schumer, traditionally a supporter of the law forcing TikTok to sell its US assets, also called for an extension, citing concerns over the app’s potential shutdown disrupting the lives of millions of users. The law, passed in April, mandates ByteDance either sell TikTok’s US assets by Sunday or face a ban on national security grounds. However, it’s now unclear whether the app will be allowed to stay active in the US without an official extension.
TikTok CEO Shou Zi Chew is reportedly set to attend President-elect Donald Trump’s inauguration, further hinting at a shift in relations between the app and the Trump administration. While concerns about Chinese ownership and its potential for data collection remain, Schumer and other lawmakers are signalling a growing bipartisan desire to avoid the political and economic fallout of a TikTok ban. The situation remains fluid, with decisions expected to unfold in the coming days.
As the deadline approaches, TikTok’s potential shutdown has already caused some users to explore alternatives, with RedNote, another Chinese social media platform, seeing a surge in US users. Meanwhile, with more than 170 million American users and substantial ad revenue at stake, the clock is ticking for a resolution before the app faces a permanent ban.
Washington has blacklisted over two dozen Chinese entities, including Zhipu AI and Sophgo, for alleged links to restricted chip technology in Huawei processors. The Commerce Department has also tightened export controls on chips that could be diverted to Huawei.
Zhipu AI, backed by Tencent and Alibaba, was accused of contributing to China’s military modernisation through advanced AI research. Sophgo faced scrutiny after a chip found in Huawei’s Ascend 910B AI system matched one it ordered from Taiwan Semiconductor Manufacturing Co (TSMC).
The measures impose stricter licensing requirements for chip exports, targeting semiconductors at 14 or 16-nanometre nodes used in AI applications. New restrictions also affect DRAM memory, crucial for high-bandwidth AI processing, which could impact Chinese chipmaker CXMT.
Zhipu AI denied the claims, while Sophgo stated it had no direct or indirect ties to Huawei. Huawei and TSMC declined to comment on the latest sanctions, which build on previous curbs against Huawei and its network of suppliers.
Disappointment and confusion swept across TikTok users in the United States as news broke that ByteDance, the app’s Chinese owner, plans to shut down the platform for its 170 million US users by Sunday. The move comes in response to a federal ban requiring ByteDance to sell TikTok’s US assets by January 19 due to national security concerns. While some users hold out hope for a last-minute reprieve, many are preparing for the worst.
Content creators, many of whom have built careers and followings on TikTok, expressed frustration and sadness. Some vowed to boycott rival platforms like Instagram, Facebook, and X, while others scrambled to save their content. True crime creator Amber Goode, from Colorado, criticised the government for “playing with us,” while other users shared instructions on migrating to alternative platforms, including China-based apps like RedNote.
TikTok has maintained that it does not and would never share US user data with China, arguing that the ban violates First Amendment rights. Unless the Supreme Court intervenes, users attempting to open the app on Sunday will be redirected to a shutdown information page. President-elect Donald Trump is reportedly exploring executive actions to delay the ban, but the outcome remains uncertain.
The shutdown has sparked mixed emotions globally, with some international users relieved that American social media issues may no longer dominate their feeds. However, for US creators like Ishpal Sidhu, who stands to lose her livelihood, the uncertainty has cast a shadow over what was once a thriving platform.
Italian startup iGenius has launched Colosseum 355B, a large language model built using the latest Nvidia technology, designed for industries with strict data protection and compliance needs. CEO Uljan Sharka highlighted the challenges that tight regulations pose for AI adoption in sectors like finance, heavy industry, and government, where data security is paramount.
Unlike major competitors like OpenAI, iGenius offers open-source AI models that allow companies to run the technology on their own infrastructure, ensuring that sensitive data remains in-house. The startup is already in talks with potential clients in the financial services and industrial sectors.
Sharka also traveled to Brussels to present the new model to the European Commission, aiming to gain regulatory approval and foster wider adoption in Europe’s heavily regulated markets.
China’s Commerce Ministry announced plans to investigate US government subsidies to its semiconductor sector following requests from China’s mature node chip industry. The ministry stated on Thursday that these subsidies, introduced under the Biden administration, allegedly provide American companies with an unfair competitive advantage in the global market.
According to the Chinese government, US firms have exported mature node chip products to China at reduced prices, causing harm to the interests of China’s domestic semiconductor industry. Beijing views these practices as a threat to its industry’s rights and competitive balance.
The investigation reflects rising tensions between the two nations over technology and trade, particularly as both seek to bolster their semiconductor sectors amid growing geopolitical competition.
Austrian advocacy group Noyb has filed privacy complaints against six Chinese companies, including TikTok, Shein, and Xiaomi, alleging illegal transfers of European user data to China. The group, known for targeting US tech giants like Apple and Meta, said this is its first case against Chinese firms. Complaints have been filed in four EU countries, seeking fines of up to 4% of each company’s global revenue.
Noyb claims that companies such as Alibaba’s AliExpress and Tencent’s WeChat transfer EU citizens’ data either directly to China or undisclosed ‘third countries,’ which are likely China. Under EU data protection laws, such transfers are prohibited if the destination country fails to meet the bloc’s strict privacy standards. A Noyb lawyer emphasised that China’s status as a ‘surveillance state’ makes such transfers clearly unlawful.
The allegations add to mounting regulatory challenges for Chinese tech firms. TikTok, already under scrutiny in Europe for election interference concerns, faces a potential US ban starting Sunday over national security fears. Regulators in multiple regions continue to ramp up pressure on Chinese companies amid growing global concerns over data privacy and security.
