The United States Federal Trade Commission (FTC) has referred a complaint about Snap Inc’s AI-powered chatbot, My AI, to the Department of Justice (DOJ) for further investigation. The FTC alleges the chatbot caused harm to young users, though specific details about the alleged harm remain undisclosed.
Snap Inc defended its chatbot, asserting that My AI operates under rigorous safety and privacy measures and criticised the FTC for lacking concrete evidence to support its claims. Despite the company’s reassurances, the FTC stated it had uncovered indications of potential legal violations.
The announcement impacted Snap’s stock performance, with shares dropping by 5.2% to close at $11.22 on Thursday. The US FTC noted that publicising the complaint’s transfer to the DOJ was in the public interest, underscoring the gravity of the allegations.
Nvidia has launched three new NIM microservices designed to help enterprises control and secure their AI agents. These services are part of Nvidia NeMo Guardrails, a collection of software tools aimed at improving AI applications. The new microservices focus on content safety, restricting conversations to approved topics, and preventing jailbreak attempts on AI agents.
The content safety service helps prevent AI agents from generating harmful or biased outputs, while the conversation filter ensures discussions remain on track. The third service works to block attempts to bypass AI software restrictions. Nvidia’s goal is to provide developers with more granular control over AI agent interactions, addressing gaps that could arise from broad, one-size-fits-all policies.
Enterprises are showing growing interest in AI agents, though adoption is slower than anticipated. A recent Deloitte report predicts that by 2027, half of enterprises will be using AI agents, with 25% already implementing or planning to do so by 2025. Despite widespread interest, the pace of adoption remains slower than the rapid development of AI technology.
Nvidia’s new tools are designed to make AI adoption more secure and reliable. The company hopes these innovations will encourage enterprises to integrate AI agents into their operations with greater confidence, but only time will tell whether this will be enough to accelerate widespread usage.
Seven Indian startups have been selected for a groundbreaking India-US space and defence collaboration program, opening doors to the world’s largest defence and space market. The program, launched in September 2024 by Indian investor Indusbridge Ventures and US-based FedTech, focuses on defence and dual-use technologies. Among the selected companies are space imaging firm KaleidEO, rocket manufacturer EtherealX, and AI-driven Shyam VNL, all of which will explore opportunities with US agencies like the Defense Innovation Unit and the Department of Defense.
The initiative offers Indian startups access to resources, mentorship, and collaborations with US industry leaders such as Northrop Grumman, Lockheed Martin, and RTX. According to sources, these partnerships could provide a competitive advantage in the $1.5 billion annual market for niche technologies and potentially generate revenues between $500 million and $1 billion annually. Discussions are already underway on specific projects, although details remain under wraps.
This development aligns with recent diplomatic efforts to strengthen India-US ties in defence and space technology. Indian National Security Advisor Ajit Doval and US counterpart Jake Sullivan recently met in New Delhi to discuss enhancing collaboration between the US Defense Innovation Unit and India’s Innovations for Defense Excellence. The program is a significant step toward fostering innovation and boosting private-sector cooperation between the two nations in strategic sectors.
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 Chinese government “has never and will never” require companies or individuals to collect or transfer data in ways that violate the law, China’s foreign ministry declared on Friday. The statement was issued in response to a privacy complaint filed by Austrian advocacy group Noyb, which accuses six Chinese companies, including TikTok, Shein, and Xiaomi, of unlawfully sending European Union user data to China.
Noyb, an organisation focused on data protection and privacy rights, alleges that the companies breached the EU’s General Data Protection Regulation (GDPR) by transferring user data without proper safeguards. The complaint has sparked concerns in Europe about how personal information is handled by Chinese firms operating within the EU. If proven, the violations could result in significant fines and further scrutiny of these companies.
In defending the nation’s stance, a foreign ministry spokesperson emphasised that China operates within the bounds of international laws and rejects any claims of illegal data practices. “China strictly upholds its legal and regulatory framework and will never engage in or endorse actions that violate laws regarding data collection or transfer,” the spokesperson said. The spokesperson also criticised what they described as “unfounded accusations” aimed at tarnishing Chinese businesses.
This case is the latest in a series of global concerns about data privacy and the practices of technology firms. It underscores the growing tension between nations over data security, cross-border data flows, and regulatory compliance, particularly as Chinese companies expand their presence in foreign markets. The outcome of Noyb’s complaint could have far-reaching implications for data governance and corporate practices in both Europe and China.
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.
Meta, the parent company of Facebook, announced that its new ‘Community Notes’ feature will apply only to organic content, not paid ads, when it rolls out later this year. Similar to a feature on X, the platform formerly known as Twitter, Community Notes will allow users to add context to organic posts, which are posts that Meta has not been paid to promote. However, paid advertisements will be excluded from this feature.
Aspects of the program are still evolving, with brand and influencer organic posts potentially not being subject to Community Notes initially. Meta clarified that it is in the process of transitioning to this new system and will continue to evaluate and refine it throughout the year. The company recently scrapped its US fact-checking program and is now focusing on this new initiative, ahead of President-elect Donald Trump’s inauguration.
Meta emphasised that any further details about the Community Notes program, beyond what has been officially announced, are speculative at this point. The company will begin implementing the feature in the US over the next couple of months as part of a broader overhaul in how it handles political content.
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.
US authorities, including the Commerce Department and the FBI, are investigating Baicells Technologies, a telecom hardware company with ties to China, over potential security risks. Founded by former Huawei executives, Baicells has supplied telecom equipment to 700 networks across the US since opening its North American branch in 2015. The investigations focus on national security concerns, particularly around the company’s Chinese origins and its equipment’s potential vulnerability to espionage. The FBI’s interest in Baicells goes back to 2019, and recent reports suggest that the Pentagon has added the company to a list of entities connected to China’s military.
While Baicells has denied any wrongdoing and pledged full cooperation with US authorities, the company faces mounting scrutiny amid fears that Chinese-made telecom equipment could be used for surveillance or cyber attacks. In particular, base stations and routers provided by Baicells have been flagged for vulnerabilities that could allow hackers to compromise sensitive networks. The FBI has already contacted local US entities, such as the city of Las Vegas, to raise security concerns regarding Baicells’ technology.
Despite Baicells’ claims that it no longer has ties to its Chinese parent company, its history and ownership structure continue to raise doubts. Many of its top executives and a significant portion of its staff have links to Huawei, further fueling suspicions about the company’s operations. In recent years, Baicells has attempted to distance itself from its Chinese roots, stating that its infrastructure is increasingly built in Taiwan, though much of its equipment still originates from China. The ongoing investigations highlight the broader concerns in Washington about the risks posed by Chinese-linked technology in critical infrastructure.
