A prominent technology trade group has urged the Biden administration to reconsider a proposed rule that would restrict global access to US-made AI chips, warning that the measure could undermine America’s leadership in the AI sector. The Information Technology Industry Council (ITI), representing major companies like Amazon, Microsoft, and Meta, expressed concerns that the restrictions could unfairly limit US companies’ ability to compete globally while allowing foreign rivals to dominate the market.
The proposed rule, expected to be released as soon as Friday, is part of the Commerce Department’s broader strategy to regulate AI chip exports and prevent misuse, particularly by adversaries like China. The restrictions aim to curb the potential for AI to enhance China’s military capabilities. However, in a letter to Commerce Secretary Gina Raimondo, ITI CEO Jason Oxman criticised the administration’s urgency in finalising the rule, warning of ‘significant adverse consequences’ if implemented hastily. Oxman called for a more measured approach, such as issuing a proposed rule for public feedback rather than enacting an immediate policy.
Industry leaders have been vocal in their opposition, describing the draft rule as overly broad and damaging. The Semiconductor Industry Association raised similar concerns earlier this week, and Oracle’s Executive Vice President Ken Glueck slammed the measure as one of the most disruptive ever proposed for the US tech sector. Glueck argued the rule would impose sweeping regulations on the global commercial cloud industry, stifling innovation and growth.
While the administration has yet to comment on the matter, the growing pushback highlights the tension between safeguarding national security and maintaining US dominance in the rapidly evolving field of AI.
Telegram, the popular messaging app, has fulfilled 900 requests from US authorities for personal information about its users in 2024, with a significant rise in inquiries following the arrest of CEO Pavel Durov in France. A report from 404 Media, published on 7 January, revealed that the platform provided 14 requests for IP addresses and phone numbers between January and September 2024. However, most of these requests were made after October, affecting over 2,000 users.
The increase in requests came after French authorities arrested Durov on 24 August, accusing Telegram of enabling criminal activity. Durov has stated that since 2018, Telegram has been providing user information like IP addresses and phone numbers to law enforcement authorities when requested. The policy, which is mentioned in Telegram’s privacy guidelines, continues to be a source of controversy.
Despite the ongoing legal issues, with Durov still barred from leaving France, Telegram remains a key platform, especially within the cryptocurrency community, where it has more than 950 million monthly active users.
Apple remains unable to sell its iPhone 16 in Indonesia despite agreeing to build a production facility in the country, according to Indonesia’s industry minister, Agus Gumiwang Kartasasmita. The ban stems from regulations requiring smartphones sold domestically to include at least 35% locally-made components—a threshold Apple has not met.
While Apple plans to invest $1 billion in a facility on Batam island to produce its Airtag tracking devices, the industry ministry clarified that this does not qualify as contributing to iPhone production. Kartasasmita emphasised that only phone components would satisfy the local content rules necessary for certification to sell iPhones in Indonesia.
Apple, which lacks manufacturing facilities in the country, has maintained its presence through application developer academies since 2018. Despite two days of discussions between Kartasasmita and Apple’s vice president of global government affairs, Nick Ammann, the company’s proposals for ‘innovative investment’ failed to meet Indonesia’s regulatory standards for smartphone sales.
The planned Batam facility, expected to launch operations next year, underscores Apple’s interest in expanding its footprint in Indonesia, a nation of 280 million people. However, the iPhone 16’s path to market in the region remains uncertain.
Meta Platforms has elected three new directors to its board, including Dana White, CEO of Ultimate Fighting Championship (UFC) and a close associate of President-elect Donald Trump. Investor and former Microsoft executive Charlie Songhurst and Exor CEO John Elkann have also joined. Meta CEO Mark Zuckerberg said their expertise would help the company navigate opportunities in artificial intelligence, wearables, and digital connectivity.
White’s appointment strengthens his ties with Zuckerberg, who has become a mixed martial arts enthusiast. The two have shared public exchanges in recent years, with Zuckerberg attending UFC events at White’s invitation. Songhurst has been involved in Meta’s AI advisory group since May, while Elkann holds leadership roles at Ferrari and Stellantis, alongside chairing the Agnelli Foundation.
Zuckerberg has been adjusting Meta’s strategy ahead of a possible second Trump presidency. The company recently promoted Republican policy expert Joel Kaplan and donated $1 million to Trump’s inaugural fund, signalling a shift in its political stance. Meta has also acknowledged past content decisions that were unpopular among conservatives as it prepares for the evolving political landscape.
The future of TikTok in the United States hangs in the balance as the Supreme Court prepares to hear arguments on 10 January over a law that could force the app to sever ties with its Chinese parent company, ByteDance, or face a ban. The case centres on whether the law violates the First Amendment, with TikTok and its creators arguing that it does, while the US government maintains that national security concerns justify the measure. If the government wins, TikTok has stated it would shut down its US operations by 19 January.
Creators who rely on TikTok for income are bracing for uncertainty. Many have taken to the platform to express their frustrations, fearing disruption to their businesses and online communities. Some are already diversifying their presence on other platforms like Instagram and YouTube, though they acknowledge TikTok’s unique algorithm has provided visibility and opportunities not found elsewhere. Industry experts believe many creators are adopting a wait-and-see approach, avoiding drastic moves until the Supreme Court reaches a decision.
The Biden administration has pushed for a resolution without success, while President-elect Donald Trump has asked the court to delay the ban so he can weigh in once in office. If the ban proceeds, app stores and internet providers will be required to stop supporting TikTok, ultimately rendering it unusable. TikTok has warned that even a temporary shutdown could lead to a sharp decline in users, potentially causing lasting damage to the platform. A ruling from the Supreme Court is expected in the coming weeks.
Apple has agreed to pay $95 million to settle a class action lawsuit alleging its Siri voice assistant violated users’ privacy. The lawsuit claimed that Apple recorded users’ private conversations without consent when the ‘Hey, Siri’ feature was unintentionally triggered. These recordings were allegedly shared with third parties, including advertisers, leading to targeted ads based on private discussions.
The class period for the lawsuit spans from 17 September 2014 to 31 December 2024 and applies to users of Siri-enabled devices like iPhones and Apple Watches. Affected users could receive up to $20 per device. Apple denied any wrongdoing but settled the case to avoid prolonged litigation.
The settlement amount is a small fraction of Apple’s annual profits, with the company making nearly $94 billion in net income last year. While the company and plaintiffs’ lawyers have yet to comment on the settlement, the plaintiffs may seek up to $28.5 million in legal fees and expenses. A similar lawsuit involving Google’s Voice Assistant is also underway in a California federal court.
The Sixth Circuit Court of Appeals has struck down federal net neutrality rules, ruling that the US Federal Communications Commission (FCC) does not have the authority to regulate internet service providers (ISPs) in this way. The decision challenges the FCC’s attempt to reclassify ISPs as common carriers under Title II of the Communications Act, a move to prevent discrimination in internet traffic, such as slowing speeds or blocking content.
The court’s ruling follows the Supreme Court’s 2024 decision to eliminate Chevron deference, a legal principle that typically allows courts to defer to regulatory agencies’ interpretations. With this shift, the judges were free to question the FCC’s interpretation of the law and ultimately concluded that ISPs cannot be regulated as telecommunications services.
The decision has sparked a call for legislative action. FCC Chair Jessica Rosenworcel urged lawmakers to pass laws safeguarding net neutrality, reflecting public demand for a fair and open internet. Meanwhile, Republican figures, including FCC Commissioner Brendan Carr, celebrated the ruling, viewing it as a victory against government overreach in regulating the internet.
This legal setback comes as the Biden administration’s push for net neutrality faces increasing challenges, and it remains uncertain whether future attempts to reinstate the rules will succeed.
Anthropic, the company behind the Claude AI model, has agreed to resolve aspects of a copyright infringement lawsuit filed by major music publishers. The lawsuit, initiated in October 2023 by Universal Music Group, ABKCO, Concord Music Group, and others, alleged that Anthropic’s AI system unlawfully distributed lyrics from over 500 copyrighted songs, including tracks by Beyoncé and Maroon 5.
The publishers argued that Anthropic improperly used data from licensed platforms to train its models without permission. Under the settlement approved by US District Judge Eumi Lee, Anthropic will maintain and extend its guardrails designed to prevent copyright violations in existing and future AI models.
The company also agreed to collaborate with music publishers to address potential infringements and resolve disputes through court intervention if necessary. Anthropic reiterated its commitment to fair use principles and emphasised that its AI is not intended for copyright infringement.
Despite the agreement, the legal battle isn’t over. The music publishers have requested a preliminary injunction to prevent Anthropic from using their lyrics in future model training. A court decision on this request is expected in the coming months, keeping the spotlight on how copyright law applies to generative AI.
Do Kwon, the South Korean cryptocurrency entrepreneur responsible for the collapse of TerraUSD and Luna currencies, pleaded not guilty to US criminal fraud charges on Thursday. The plea followed his extradition from Montenegro earlier this week.
Kwon, co-founder of Terraform Labs, is accused of orchestrating a multi-billion-dollar fraud scheme that led to an estimated $40 billion loss in cryptocurrency value in 2022. Federal prosecutors in Manhattan unsealed a nine-count indictment against Kwon, charging him with securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering.
The indictment claims Kwon deceived investors by falsely promoting TerraUSD as a stablecoin guaranteed to maintain its $1 value. Prosecutors allege that when TerraUSD’s value dropped in 2021, Kwon secretly enlisted a high-frequency trading firm to inflate the token’s price, misleading investors and artificially boosting its sister token, Luna.
These alleged misrepresentations drove substantial investment into Terraform Labs’ products, propelling Luna’s market value to $50 billion by early 2022. However, the scheme unravelled in May 2022 when TerraUSD and Luna crashed, causing turmoil in the broader cryptocurrency market.
Kwon, 33, remains in custody in Manhattan after declining to seek bail during his initial court appearance. His trial is set to begin on 8 January. Kwon has faced mounting legal troubles, including a $4.55 billion settlement with the US Securities and Exchange Commission and a federal jury finding him liable for defrauding investors earlier this year.
His case is part of a broader crackdown on cryptocurrency figures, including FTX’s Sam Bankman-Fried and Celsius Network’s Alex Mashinsky, as US authorities tighten scrutiny over the volatile industry.
GlobalFoundries and IBM announced on Thursday that they have resolved their legal dispute over alleged contract breaches and misuse of trade secrets. The confidential settlement ended lawsuits in which IBM accused GlobalFoundries of violating a $1.5 billion contract for high-performance chips. At the same time, GlobalFoundries countered with claims that IBM misused its trade secrets during partnerships with Intel and Japan’s Rapidus consortium.
The legal conflict stemmed from GlobalFoundries’ 2015 acquisition of IBM’s semiconductor plants, a deal that was later scrutinised in court. Despite the contentious history, the companies stated that the settlement opens doors for potential collaboration, signalling a move beyond their acrimonious past.
GlobalFoundries, backed by Abu Dhabi’s sovereign wealth fund Mubadala, has also expanded its semiconductor footprint. In November, the US Commerce Department awarded the chipmaker $1.5 billion to bolster New York and Vermont production. This financial boost aligns with the broader US push to strengthen domestic semiconductor manufacturing amid global supply chain challenges.
