US antitrust regulators provided legal insights on Elon Musk’s lawsuit against OpenAI and Microsoft, alleging anticompetitive practices. While not taking a formal stance, the Federal Trade Commission (FTC) and Department of Justice (DOJ) highlighted key legal doctrines supporting Musk’s claims ahead of a court hearing in Oakland, California. Musk, a co-founder of OpenAI and now leading AI startup xAI, accuses OpenAI of enforcing restrictive agreements and sharing board members with Microsoft to stifle competition.
The lawsuit also claims OpenAI orchestrated an investor boycott against rivals. Regulators noted such boycotts are legally actionable, even if the alleged organiser isn’t directly involved. OpenAI has denied these allegations, labelling them baseless harassment. Meanwhile, the FTC is conducting a broader probe into AI partnerships, including those between Microsoft and OpenAI, to assess potential antitrust violations.
Microsoft declined to comment on the case, while OpenAI pointed to prior court filings refuting Musk’s claims. However, the FTC and DOJ stressed that even former board members, like Reid Hoffman, could retain sensitive competitive information, reinforcing Musk’s concerns about anticompetitive practices.
Musk’s legal team sees the regulators’ involvement as validation of the seriousness of the case, underscoring the heightened scrutiny around AI collaborations and their impact on competition.
Taiwan is optimistic about the limited impact of US President-elect Donald Trump’s proposed tariffs on semiconductor exports, citing the nation’s technological edge in the global chip industry. On Friday, economy Minister Kuo Jyh-huei emphasised that Taiwan’s advanced semiconductor processes, led by industry giant TSMC, maintain an irreplaceable position in the supply chain for major companies like Apple and Nvidia.
Despite Trump’s pledges for sweeping tariffs—10% on global imports and up to 60% on Chinese goods—Taiwanese policymakers acknowledged potential challenges for the island’s export-driven economy. However, Kuo reassured that the chip sector’s resilience lies in its technological leadership, which mitigates the risk of significant disruption.
To adapt to the shifting trade landscape, Taiwan plans to help companies relocate parts of their supply chains to the United States if necessary. The island also aims to deepen cooperation in industries like aerospace and advanced technology by fostering ties with US and Japanese firms. This includes establishing a dedicated office in Japan to bolster collaboration on AI and drone development, Kuo said.
Taiwan’s proactive approach reflects its strategic positioning in global trade and its commitment to maintaining robust economic ties amid evolving US policies.
Google and Microsoft have each pledged $1 million to support Donald Trump’s upcoming presidential inauguration, joining other tech giants such as Meta, Amazon, and Apple’s Tim Cook in contributing significant sums. The donations appear to be part of broader strategies by these companies to maintain access to political leadership in a rapidly changing regulatory environment.
Google, which has faced threats from Trump regarding potential break-ups, aims to secure goodwill through financial contributions and online visibility, including a YouTube livestream of the inauguration. Microsoft has also maintained steady political donations, previously giving $500,000 to Trump’s first inauguration as well as to President Joe Biden’s ceremony.
This alignment with Trump marks a notable trend of tech companies seeking to protect their interests, particularly as issues like antitrust regulations and data privacy laws remain in political crosshairs. With both tech giants navigating a landscape of increased government scrutiny, their contributions indicate a cautious approach to preserving influence at the highest levels of power.
These donations reflect a pragmatic move by Silicon Valley, where cultivating political ties is seen as a way to safeguard business operations amid shifting political dynamics.
Brazilian President Luiz Inácio Lula da Silva has condemned Meta’s decision to discontinue its fact-checking program in the United States, calling it a grave issue. Speaking in Brasília on Thursday, Lula emphasised the need for accountability in digital communication, equating its responsibilities to those of traditional media. He announced plans to meet with government officials to discuss the matter.
Meta’s recent decision has prompted Brazilian prosecutors to seek clarification on whether the changes will affect the country. The company has been given 30 days to respond as part of an ongoing investigation into how social media platforms address misinformation and online violence in Brazil.
Justice Alexandre de Moraes of Brazil’s Supreme Court, known for his strict oversight of tech companies, reiterated that social media firms must adhere to Brazilian laws to continue operating in the country. Last year, he temporarily suspended X (formerly Twitter) over non-compliance with local regulations.
Meta has so far declined to comment on the matter in Brazil, fueling concerns over its commitment to tackling misinformation globally. The outcome of Brazil’s inquiry could have broader implications for how tech firms balance local laws with global policy changes.
Frank McCourt’s Project Liberty, along with a group of partners, has formally proposed a bid to acquire TikTok’s US assets from ByteDance. The consortium announced its intentions just ahead of ByteDance’s January 19 deadline to sell the platform or face a ban under legislation signed by President Joe Biden in April.
The group has gathered sufficient financial backing, including interest from private equity funds, family offices, and high-net-worth individuals, with debt financing from a leading US bank. The proposed value of the deal has not been disclosed.
McCourt stated the goal is to keep TikTok accessible to millions of US users without relying on its current algorithm while preventing a ban. Efforts are underway to engage with ByteDance, President-elect Trump, and the incoming administration to finalise the deal.
Nvidia has voiced strong opposition to a reported plan by the Biden administration to impose new restrictions on the export of AI chips, urging the outgoing president to avoid making a decision that could impact the incoming Trump administration. The company warned that such measures would harm the US economy, hinder innovation, and benefit adversaries like China. Nvidia’s Vice President, Ned Finkle, called the policy a “last-minute” move that would leave a legacy of criticism from both US industry and the global community.
The proposed restrictions, as reported by Bloomberg, aim to limit AI chip exports to certain countries, particularly targeting China to prevent the enhancement of its military capabilities. While some nations would face outright bans, the rules would also cap the computing power that can be exported to others. The Biden administration has yet to confirm the details, and requests for comment from the White House and the Commerce Department went unanswered.
Industry groups, including the Information Technology Industry Council, which represents major tech firms like Amazon, Microsoft, and Meta, have expressed concern about the policy. They argue that it would impose arbitrary limitations on US companies’ global competitiveness and risk ceding market leadership to foreign rivals. Nvidia warned that these restrictions could push international markets toward alternative technologies, undermining the US technology sector.
President-elect Donald Trump, who begins his second term on January 20, previously enacted technology export restrictions to China during his first term, citing national security concerns. Nvidia’s statement reflects apprehension about the continuity of US policy on AI chip exports under the new administration.
A hacker claims to have breached US location tracking company Gravy Analytics, leaking around 1.4 gigabytes of data. The allegation, shared on a Russian-language cybercriminal forum, included screenshots suggesting a data theft. Verification attempts were complicated as Gravy’s website remained offline and the company did not respond to messages.
Cybersecurity experts reviewing the leaked data found the breach credible. Marley Smith from RedSense and John Hammond from Huntress both confirmed the data appeared legitimate, though the hacker’s identity remains unclear.
The FTC expressed concerns that such data could be misused for stalking, blackmail, and espionage but declined to comment on the breach. FTC Chair Lina Khan recently warned that targeted advertising practices leave sensitive data highly vulnerable.
The FBI has raised alarms about the growing use of artificial intelligence in scams, particularly through deepfake technology. These AI-generated videos and audio clips can convincingly imitate real people, allowing criminals to impersonate family members, executives, or even law enforcement officials. Victims are often tricked into transferring money or disclosing personal information.
Deepfake scams are becoming more prevalent in the US due to the increasing accessibility of generative AI tools. Criminals exploit these technologies to craft realistic phishing emails, fake social media profiles, and fraudulent investment opportunities. Some have gone as far as generating real-time video calls to enhance their deception.
To protect against these threats, experts recommend limiting the personal information shared online, enabling two-factor authentication, and verifying any unusual or urgent communications. The FBI stresses the importance of vigilance, especially as AI-driven scams become more sophisticated and harder to detect. By understanding these risks and adopting stronger security practices, individuals can safeguard themselves against the growing menace of deepfake fraud.
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.
Meta Platforms has announced the termination of its US fact-checking program and eased restrictions on politically charged discussions, such as immigration and gender identity. The decision, which affects Facebook, Instagram, and Threads, marks a significant shift in the company’s content moderation strategy. CEO Mark Zuckerberg framed the move as a return to ‘free expression,’ citing recent US elections as a cultural tipping point. The changes come as Meta seeks to build rapport with the incoming Trump administration.
In place of fact-checking, Meta plans to adopt a ‘Community Notes’ system, similar to that used by Elon Musk’s platform X. The company will also scale back proactive monitoring of hate speech, relying instead on user reports, while continuing to address high-severity violations like terrorism and scams. Meta is also relocating some policy teams from California to other states, signalling a broader operational shift. The decision follows the promotion of Republican policy executive Joel Kaplan to head of global affairs and the appointment of Trump ally Dana White to Meta’s board.
The move has sparked criticism from fact-checking organisations and free speech advocates. Angie Drobnic Holan, head of the International Fact-Checking Network, pushed back against Zuckerberg’s claims of bias, asserting that fact-checkers provide context rather than censorship. Critics, including the Centre for Information Resilience, warn that the policy rollback could exacerbate disinformation. For now, the changes will apply only to the US, with Meta maintaining its fact-checking operations in regions like the European Union, where stricter tech regulations are in place.
As Meta rolls out its ‘Community Notes’ system, global scrutiny is expected to intensify. The European Commission, already investigating Musk’s X over similar practices, noted Meta’s announcement and emphasised compliance with the EU’s Digital Services Act, which mandates robust content regulation. While Meta navigates a complex regulatory and political landscape, the impact of its new policies on disinformation and public trust remains uncertain.
