Jurisdiction Archives | Page 99 of 137 | Digital Watch Observatory

GlobalFoundries and IBM settle legal disputes, hint at future collaboration amidst US semiconductor boost

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.

Elon Musk’s regulatory challenges and potential influence under Trump’s presidency

In the final days of Joe Biden’s US presidency, the SEC pressured Elon Musk to settle allegations of securities violations related to his 2022 Twitter takeover or face civil charges. Musk’s response, shared via social media, included a legal letter accusing the SEC of an ‘improperly motivated’ ultimatum and demanding to know if the White House had influenced the action. Both the SEC and White House declined to comment.

As Donald Trump prepares to take office, questions arise about how Musk’s ties to the incoming administration could impact ongoing federal investigations into his business ventures, including Tesla, SpaceX, and Neuralink. Sources reveal at least 20 active probes into issues ranging from Tesla’s driver-assistance systems to SpaceX’s environmental practices.

Critics warn that Trump’s administration might scale back regulatory scrutiny, while legal experts argue that evidence-based cases could still proceed regardless of Musk’s political connections. Musk’s proximity to Trump has intensified since the election, with Musk participating in high-profile meetings and being appointed to co-lead a government efficiency initiative.

Musk has openly discussed using his position to push policies that could benefit his businesses, such as easing driverless-vehicle regulations. Meanwhile, ongoing investigations, including those by the DOJ and the National Highway Traffic Safety Administration, face uncertainties over enforcement under the new administration.

Musk’s business dealings, including contacts with foreign leaders and regulatory disputes, continue to draw attention. Despite allegations of political interference, agencies like the EPA and NASA have emphasised their commitment to legal responsibilities. However, critics fear that Musk’s influence could undermine the integrity of federal oversight during Trump’s second term.

New AI governance law proposed in Texas

Texas lawmakers are considering a significant step in regulating artificial intelligence with the proposed Responsible AI Governance Act. The legislation targets high-risk AI systems, defining them as tools influencing decisions on education, employment, healthcare, and other critical services. Developers and deployers of such systems would face stringent requirements under the Act.

The draft mandates developers to produce detailed risk reports and maintain data records, ensuring transparency. Deployers must oversee human involvement in AI-driven decisions and report discrimination risks promptly. Regular assessments are required to address potential algorithmic biases and ensure compliance with intended uses.

The Act also sets clear prohibitions, including bans on systems manipulating behaviour, social scoring, and unauthorised biometric data collection. Developers and deployers must disclose to consumers when interacting with AI, providing clear explanations of system purposes and decision-making processes.

With enforcement led by the Texas Attorney General, businesses are urged to evaluate their practices and prepare for potential changes. The legislation could serve as a model for AI governance nationwide, shaping the future of ethical AI development and deployment.

Terraform Labs co-founder Do Kwon extradited to US by Montenegro

Montenegro has extradited Terraform Labs co-founder Do Kwon to the US, where he faces charges related to investor deception and the collapse of the TerraUSD cryptocurrency. The Montenegrin interior ministry confirmed Kwon was handed over to US law enforcement at Podgorica airport.

Kwon, a South Korean national, was arrested in March 2023 while attempting to leave Montenegro. The Supreme Court recently ruled that legal conditions for extradition were met, prompting Justice Minister Bojan Bozovic to approve the US request. His legal team has appealed the decision at Montenegro’s Constitutional Court.

The former CEO of Terraform Labs is accused of misleading investors about TerraUSD’s stability. The cryptocurrency collapsed in May 2022, triggering an estimated $40 billion in market losses. Kwon and his company are also being sued by the US Securities and Exchange Commission over allegations of fraud involving TerraUSD and Luna.

Stablecoins are digital assets designed to maintain a fixed value, typically pegged to a fiat currency. TerraUSD’s failure undermined trust in their stability and shook the broader cryptocurrency market.

US takes legal action against fintech app Dave and CEO

The US Department of Justice and the Federal Trade Commission have initiated legal proceedings against fintech company Dave and its CEO, Jason Wilk. Allegations include deceptive advertising practices linked to cash advances promoted on the platform, some of which users reportedly never received.

Authorities argue the company engaged in unfair practices, including hidden fees, misuse of customer tips, and inadequate cancellation processes for recurring charges. The complaint seeks monetary penalties, consumer redress, and measures to prevent future violations.

Dave denies the allegations, asserting many claims are inaccurate. The company has introduced a simplified fee structure, removing tips and express fees regulators criticised. However, the updated structure was implemented on 4 December for new users, with existing customers transitioning gradually.

The legal filing replaces an earlier complaint from November, initially targeting the company without seeking penalties. Regulators now aim for broader accountability by including the CEO in the amended complaint.

ByteDance’s $7B AI investment as TikTok ban looms in the US

The owner of TikTok, ByteDance, plans a significant $7 billion investment in AI hardware by 2025. The company is turning to Nvidia chips despite US-imposed restrictions on AI chip exports to China. ByteDance has devised methods to bypass these curbs by storing chips in data centres outside China, particularly in Southeast Asia, without breaching restrictions.

The United States introduced export restrictions in 2022, citing security concerns about Chinese companies accessing advanced AI hardware. ByteDance has denied any ties to the Chinese government, countering allegations raised by US lawmakers. Meanwhile, the restrictions have drawn warnings from Chinese industry bodies about over-reliance on US technology, a scenario that could also affect companies like Nvidia and AMD.

US President-elect Donald Trump is advocating for a delay in the January 19 TikTok ban deadline. He hopes for more time to pursue a political solution that avoids disruption to TikTok’s 170 million US users. Legal challenges filed by ByteDance against the ban, which it argues infringes free speech, have so far failed to yield results.

The Supreme Court is set to hear arguments on the matter on January 10, marking a final chance for ByteDance, TikTok, and US authorities to present their cases. Trump recently met TikTok CEO Shou Zi Chew, describing the platform as holding a ‘warm spot’ in his heart. However, over 20 state attorneys general and the Justice Department have labelled the app a national security risk, urging the court to uphold the ban.

Legal world embraces AI for access to justice

AI is revolutionising the legal field, offering solutions to improve fairness and reduce costs in the justice system. Tools powered by AI are being used to streamline tasks like analysing evidence, drafting contracts, and preparing cases. Organisations like the Westway Trust in London are adopting AI to assist clients with complex disputes, such as benefits appeals and housing issues. These tools save hours of work, enabling paralegals to focus on providing better support.

The technology has sparked excitement and debate among legal professionals. AI models are being developed to help barristers identify inconsistencies in real-time court transcripts and assist judges with evidence analysis. Advocates argue that AI could make justice more accessible, while reducing the burden on legal practitioners and cutting costs for clients. However, concerns about accuracy and bias persist, with experts emphasising the importance of human oversight.

Sir Geoffrey Vos, Master of the Rolls, underscores the need for AI to complement, not replace, human judges. Guidelines stress transparency in AI use and the responsibility of lawyers to verify outputs. While tools like ChatGPT can provide general advice, professionals caution against relying on non-specialised AI for legal matters. Experts believe that AI will play a crucial role in addressing the fairness gap in the justice system without compromising the rule of law.

Run:ai joins Nvidia after $700m deal

Nvidia has completed its $700 million acquisition of Israeli AI software company Run:ai, following unconditional approval by the European Commission. The deal, initially announced in April, underwent antitrust scrutiny to evaluate potential market dominance in GPUs, critical for AI applications. Regulators concluded Run:ai’s minimal current revenues posed no competition concerns.

Established in 2018, Run:ai offers workload management and orchestration software tailored for AI infrastructure. Its platform supports enterprise customers in optimising compute resources across cloud, edge, and on-premises environments. With a focus on managing large-scale GPU clusters, Run:ai is instrumental in deploying AI workloads like generative AI and search engines.

Now integrated into Nvidia, Run:ai aims to expand its offerings and make its software open-source, broadening its compatibility beyond Nvidia GPUs. The move aligns with Nvidia’s broader strategy to enhance its robotics portfolio and strengthen its AI ecosystem.

Nvidia plans to continue its advancements in robotics, targeting the release of its next-generation Jetson Thor computer for humanoid robots by early 2025.

Trump urges Supreme Court to postpone TikTok law

President-elect Donald Trump has called on the US Supreme Court to postpone implementing a law that would ban TikTok or force its sale, arguing for time to seek a political resolution after taking office. The court will hear arguments on the case on 10 January, ahead of a 19 January deadline for TikTok’s Chinese owner, ByteDance, to sell the app or face a US ban.

The move marks a stark shift for Trump, who previously sought to block TikTok in 2020 over national security concerns tied to its Chinese ownership. Trump’s legal team emphasised that his request does not take a stance on the law’s merits but seeks to allow his incoming administration to explore alternatives. Trump has expressed a newfound appreciation for TikTok, citing its role in boosting his campaign visibility.

TikTok, with over 170 million US users, continues to challenge the legislation, asserting that its data and operations affecting US users are fully managed within the country. However, national security concerns persist, with the Justice Department and a coalition of attorneys general urging the Supreme Court to uphold the divest-or-ban mandate. The case highlights the growing debate between free speech advocates and national security interests in regulating digital platforms.

EU mandates USB-C chargers for most devices

Starting Saturday, all small- and medium-sized portable electronic devices sold in the EU must use USB-C ports for charging, a move aimed at reducing waste and increasing convenience for consumers. Devices like smartphones, tablets, cameras, and headphones will now share a standardised charger, eliminating the need for multiple charging cables.

The new rule follows a 2022 vote by the European Parliament and member states to phase out alternative charging methods. Consumers can also choose to opt out of receiving a charger with new devices, further cutting down on waste. Laptop manufacturers will be required to comply with similar standards starting April 28, 2026.

Anna Cavazzini, chair of the European Parliament’s Committee on the Internal Market and Consumer Protection, hailed the change as a victory for sustainability and cost savings. The measure is expected to save EU households €250 million annually and significantly reduce the waste generated by discarded chargers. The Parliament has pledged to closely monitor manufacturers as they implement the new rules.