AI startups have played a key role in reviving United States venture capital funding, with total capital raised in 2024 increasing by nearly 30% year-on-year, according to PitchBook. AI firms secured a record 46.4% of the $209 billion raised, a sharp rise from less than 10% a decade ago. The surge in investment has been driven by growing enthusiasm for AI technology, particularly since OpenAI’s ChatGPT gained widespread attention in late 2022. Major funding rounds, including $6.6 billion for OpenAI and $12 billion for Elon Musk’s xAI, highlight investor confidence in AI’s potential.
Despite the strong investment trends, analysts warn that maintaining such momentum could be challenging, especially for foundation model firms that require significant capital for computing power and expertise. Venture capital funding overall still faces hurdles, with only $76 billion raised in 2024—the lowest in five years. Exit values also remain well below their 2021 peak, although they improved from 2023’s seven-year low. While the IPO market did not recover as quickly as expected, year-end listings like ServiceTitan have provided some renewed optimism.
Hopes for a stronger IPO and M&A market are tied to the incoming administration of President-elect Donald Trump, which is expected to introduce policies favourable to technology and business. Industry experts believe more venture-backed companies could go public in the second half of 2025, helping to sustain the investment rebound. With AI continuing to dominate venture capital funding, the sector’s ability to meet ambitious business milestones will be critical to maintaining investor confidence.
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.
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.
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.
Due to national security concerns, the US Commerce Department announced plans to consider new rules restricting or banning Chinese-made drones. The proposed regulations, open for public comment until 4 March, aim to safeguard the drone supply chain against potential threats from China and Russia.
Officials warn that adversaries could exploit these devices to access sensitive US data remotely. China dominates the US commercial drone market, with DJI, the world’s largest drone manufacturer, accounting for more than half of all sales.
The Biden administration has already taken steps to curb Chinese drone activity. In December, President Joe Biden signed legislation requiring an investigation into whether drones from companies like DJI and Autel Robotics pose unacceptable security risks.
If unresolved within a year, these companies may be barred from launching new products in the US. Additionally, DJI has faced scrutiny over alleged ties to Beijing’s military and accusations of violating the Uyghur Forced Labor Prevention Act, claims the company denies.
US Commerce Secretary Gina Raimondo hinted at measures similar to those targeting Chinese vehicles, focusing on drones with Chinese or Russian components. While DJI disputes allegations of data transmission and surveillance risks, US lawmakers remain concerned.
The evolving landscape underscores Washington’s broader efforts to address perceived security vulnerabilities in Chinese technology.
Bitcoin surged past $100,000 in 2024, more than doubling its value, driven by pivotal regulatory and political developments. The US Securities and Exchange Commission’s approval of exchange-traded funds tied to Bitcoin’s spot price marked a significant milestone, attracting mainstream and institutional interest in the cryptocurrency sector.
A broader crypto rally saw Bitcoin gain over 120% and Ethereum rise nearly 50%, boosting the market’s total value to $3.5 trillion. Analysts predict Bitcoin could reach $200,000 by late 2025, solidifying its status as a premier store of value. Enthusiasm for the asset class has extended to corporate treasuries, with firms like MicroStrategy leading the charge.
MicroStrategy’s shares quintupled in 2024, reflecting its substantial Bitcoin holdings. Other companies, including major financial players, are incorporating Bitcoin into their portfolios. Meanwhile, Donald Trump’s victory in the US presidential election, coupled with his pro-crypto stance, further energised the market.
Despite the rally, challenges persist for smaller crypto miners. Rising energy and hardware costs have limited gains for firms like Riot Platforms and Marathon Digital, which struggled against the year’s bullish trends.
A US Army soldier, Cameron John Wagenius, has been charged with selling and attempting to sell stolen confidential phone records. Arrested on 20 December, Wagenius faces two charges of unlawfully transferring confidential information in a Texas federal court. His rank and station have not been disclosed, though he is reportedly based at Fort Cavazos in Texas.
Authorities allege that Wagenius, known online as ‘Kiberphant0m’, claimed involvement in hacking activities, including phone records linked to high-profile figures. The case is connected to a broader investigation involving hackers accused of stealing sensitive personal and financial information. Prosecutors have revealed the involvement of a hacking group targeting data storage firm Snowflake’s customers.
Cybersecurity researchers identified Wagenius after members of the group issued threats against them. Law enforcement acted swiftly following the tip-off, according to Allison Nixon of Unit 221B. The prosecution is being handled in Seattle, where two co-defendants, Connor Moucka and John Binns, face related charges for extensive data breaches.
The Department of Justice and the FBI have yet to comment on the case. Wagenius has been ordered to appear in Seattle, where the investigation continues.
Sanctions have been imposed by the US on organisations in Iran and Russia accused of attempting to influence the 2024 presidential election. The Treasury Department stated these entities, linked to Iran’s Revolutionary Guard Corps (IRGC) and Russia’s military intelligence agency (GRU), aimed to exploit socio-political tensions among voters.
Russia’s accused group utilised AI tools to create disinformation, including manipulated videos targeting a vice-presidential candidate. A network of over 100 websites mimicking credible news outlets was reportedly used to disseminate false narratives. The GRU is alleged to have funded and supported these operations.
Iran’s affiliated entity allegedly planned influence campaigns since 2023, focused on inciting divisions within the US electorate. While Russia’s embassy denied interference claims as unfounded, Iran’s representatives did not respond to requests for comment.
A recent US threat assessment has underscored growing concerns about foreign attempts to disrupt American democracy, with AI emerging as a critical tool for misinformation. Officials reaffirmed their commitment to safeguarding the electoral process.
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.
Chinese hackers have been accused of infiltrating the US Treasury Department in a significant cyber attack. The breach, described as a ‘major incident’, allowed attackers to access employee workstations and unclassified documents, raising concerns over national security. The intrusion reportedly involved a third-party service provider’s compromised security key.
Officials confirmed that BeyondTrust, the affected service provider, had been taken offline. Investigations suggest a China-based Advanced Persistent Threat group was responsible. The Treasury has since partnered with the FBI and other agencies to assess the damage, while third-party forensic investigators are analysing the breach’s full impact.
China’s foreign ministry dismissed the allegations as baseless, reiterating its opposition to hacking. Accusations of Chinese cyber espionage have become more frequent, with recent incidents involving critical infrastructure and telecom companies. Officials claim the Treasury hack sought information rather than financial theft.
The incident comes amidst heightened scrutiny of Chinese cyber activities, with two prominent hacking groups linked to espionage and potential disruption campaigns. A supplemental report on the Treasury breach is expected within 30 days, as investigators continue their inquiries.
