The US Securities and Exchange Commission (SEC) has reopened its investigation into Neuralink, Elon Musk’s brain-chip startup, according to a letter shared by Musk on X, formerly known as Twitter. The letter, dated Dec. 12 and written by Musk’s attorney Alex Spiro, also revealed that the SEC issued Musk a 48-hour deadline to settle a probe into his $44 billion takeover of Twitter or face charges. The settlement amount remains undisclosed.
Musk’s tumultuous relationship with the SEC has resurfaced amid allegations that he misled investors about Neuralink’s brain implant safety. Despite ongoing investigations, the extent to which the SEC can take action against Musk is uncertain. Musk, who also leads Tesla and SpaceX, is positioned to gain significant political leverage after investing heavily in supporting Donald Trump’s presidential campaign. Trump, in turn, has appointed Musk to a government reform task force, raising questions about potential regulatory leniency toward his ventures.
In the letter, Spiro criticised the SEC’s actions, stating Musk would not be “intimidated” and reserving his legal rights. This marks the latest in a series of clashes between Musk and the SEC, including a 2018 lawsuit over misleading Tesla-related tweets, which Musk settled by paying $20 million and stepping down as Tesla chairman. Both the SEC and Neuralink have yet to comment on the reopened investigation.
Nvidia has added around 200 employees in China this year, boosting its research capabilities and focusing on autonomous driving technologies, Bloomberg News reports. The company now employs nearly 600 people in Beijing, with a recently opened office in the Zhongguancun tech hub, according to sources familiar with the matter.
Despite its expansion, Nvidia faces headwinds in China, including an ongoing investigation into alleged violations of the country’s anti-monopoly laws. This probe is widely interpreted as a response to US restrictions on China’s chip sector. Nvidia declined to comment on the situation.
China contributed about 17% of Nvidia’s revenue in the year ending January, down from 26% two years earlier. Globally, Nvidia employs around 29,600 people across 36 countries, as detailed in its February 2024 filing.
Swiss robotics firm Anybotics has raised an additional $60 million, closing its Series B round at $110 million. Known for its Anymal quadruped robot, the company focuses on automating routine inspections in complex industrial environments such as oil and gas, mining, and utilities. Equipped with sensors and cameras, Anymal enhances safety and productivity by detecting issues like thermal anomalies and gas leaks, minimising human exposure to hasardous areas.
Since first announcing the Series B round 18 months ago, the Swiss Zürich-based startup has doubled its robot deployments, with nearly 200 units now operational across various industries. Clients include major companies such as Novelis and Iamgold, as well as Stanford University, which uses the technology for advanced research.
The new funding will support Anybotics’ expansion into the US following the opening of its San Francisco office. Co-led by Qualcomm Ventures and Supernova Invest, the investment ensures the company can scale its operations globally, with plans for a broader product portfolio and industry applications in the future.
Lawmakers have called for urgent measures to strengthen US telecommunications security following a massive cyberattack linked to China. The hacking campaign, referred to as Salt Typhoon, targeted American telecom companies, compromising vast amounts of metadata and call records. Federal agencies have briefed Congress on the incident, which officials say could be the largest telecom breach in US history.
Senator Ben Ray Luján described the hack as a wake-up call, urging the full implementation of federal recommendations to secure networks. Senator Ted Cruz warned of future threats, emphasising the need to close vulnerabilities in critical infrastructure. Debate also surfaced over the role of offensive cybersecurity measures, with Senator Dan Sullivan questioning whether deterrence efforts are adequate.
The White House reported that at least eight telecommunications firms were affected, with significant data theft. In response, Federal Communications Commission Chairwoman Jessica Rosenworcel proposed annual cybersecurity certifications for telecom companies. Efforts to replace insecure Chinese-made equipment in US networks continue, but funding shortfalls have hampered progress.
China has dismissed the allegations, claiming opposition to all forms of cybercrime. However, US officials have cited evidence of data theft involving companies like Verizon, AT&T, and Lumen. Congress is set to vote on a defence bill allocating $3.1 billion to remove and replace vulnerable telecom hardware.
The US Supreme Court has dismissed an appeal by Nvidia, rejecting its attempt to block a securities fraud lawsuit accusing the chipmaker of misleading investors about its reliance on the volatile cryptocurrency market. The decision upholds a lower court’s ruling, allowing a 2018 class-action lawsuit led by Swedish investment firm E. Ohman J:or Fonder AB to proceed. The justices, offering no explanation in their one-line order, had previously expressed hesitation about addressing the case’s technical and factual complexities during November arguments.
The lawsuit centres on allegations that Nvidia’s leadership, including CEO Jensen Huang, downplayed how much of the company’s 2017-2018 revenue growth stemmed from crypto-related purchases. Nvidia’s chips gained popularity during the cryptocurrency boom but faced a sales slump when the market cooled in late 2018, leading to a drop in the company’s stock price. A federal judge initially dismissed the case, but the Ninth Circuit Court of Appeals revived it, concluding that plaintiffs sufficiently alleged Nvidia knowingly made misleading statements.
Nvidia has denied wrongdoing and vowed to continue its defence, emphasising the need for clear standards in securities litigation to protect shareholders. However, the plaintiffs argue their case is well-supported by expert analysis and insider accounts. Deepak Gupta, representing the shareholders, called the Supreme Court’s dismissal a victory for corporate accountability. President Biden’s administration backed the investors, reflecting broader concerns about corporate transparency in securities practices.
This case mirrors another recent Supreme Court decision involving Meta, where justices also dismissed a securities fraud lawsuit. Both rulings highlight the challenges of navigating legal thresholds for investor class actions under stringent US securities laws.
Russia has unveiled plans to create an AI alliance with BRICS countries Brazil, China, India, and South Africa along with other interested nations. President Vladimir Putin made the announcement at a major AI conference in Moscow, highlighting the initiative as a key step to challenge the dominance of the United States in the rapidly advancing field of AI.
The AI Alliance Network will promote joint research, technology development, and regulation among member nations. Despite Western sanctions that have hampered Russia’s access to essential AI hardware like microchips, domestic leaders like Sberbank and Yandex are driving innovation with generative AI models such as GigaChat and YandexGPT.
Russia also has ambitious plans to integrate AI across its economy, targeting a contribution of 11.2 trillion roubles to GDP by 2030 and training 80% of its workforce in AI skills. While the country currently lags behind global leaders like the US and China in AI development, this alliance could mark a turning point in its technological aspirations.
Italy is revamping its web tax to target large tech companies while sparing small and medium-sized enterprises (SMEs) and publishing groups, government officials announced. The move aims to balance domestic fiscal needs with international concerns, especially those raised by the United States, which has criticised the tax as unfairly targeting US-based firms like Meta, Google, and Amazon.
Introduced in 2019, the 3% tax applies to digital firms with global revenues exceeding €750 million and at least €5.5 million generated in Italy. Recent attempts by Italy’s Treasury to expand the tax’s scope were met with backlash, prompting officials to retain the original revenue thresholds to avoid burdening smaller companies.
Economy Minister Giancarlo Giorgetti argued that a broader tax base could reduce friction with the US, but internal government opposition led to a pivot. Rome also plans to cut corporate taxes for companies that invest and create jobs, offsetting the cost by raising €5 billion from banks and insurers over three years through measures outlined in the 2025 budget. By refining its approach, Italy seeks to strike a balance between fiscal responsibility and fostering a favorable business environment for smaller enterprises.
The US Justice Department has urged a federal appeals court to reject TikTok‘s emergency request to delay a law requiring its Chinese parent company, ByteDance, to divest from the app by 19 January or face a nationwide ban. TikTok argued the law threatens to shut down one of America’s most popular social media platforms, which boasts over 170 million US users, while the Justice Department maintains that continued Chinese ownership poses a national security risk.
While the law would not immediately block users from accessing TikTok, the Justice Department admitted the lack of ongoing support would eventually render the app inoperable. A three-judge appeals court panel recently upheld the divestment requirement, and ByteDance has asked the US Supreme Court to review the case.
The controversy places TikTok’s future in the hands of the incoming presidential administration. President Joe Biden could grant a 90-day extension to the divestment deadline before President-elect Donald Trump, who has vowed to prevent a ban, takes office on January 20. Trump’s stance on TikTok has been consistent since his unsuccessful attempts to ban the app during his first term.
The law also strengthens the US government’s powers to ban other foreign-owned apps over data security concerns, following a broader trend initiated under Trump, including an earlier attempt to block Tencent-owned WeChat. As legal battles continue, TikTok’s operations in the US hang in the balance.
Policymakers seeking to regulate AI face an uphill battle as the science evolves faster than safeguards can be devised. Elizabeth Kelly, director of the US Artificial Intelligence Safety Institute, highlighted challenges such as “jailbreaks” that bypass AI security measures and the ease of tampering with digital watermarks meant to identify AI-generated content. Speaking at the Reuters NEXT conference, Kelly acknowledged the difficulty in establishing best practices without clear evidence of their effectiveness.
The US AI Safety Institute, launched under the Biden administration, is collaborating with academic, industry, and civil society partners to address these issues. Kelly emphasised that AI safety transcends political divisions, calling it a “fundamentally bipartisan issue” amid the upcoming transition to Donald Trump’s presidency. The institute recently hosted a global meeting in San Francisco, bringing together safety bodies from 10 countries to develop interoperable tests for AI systems.
Kelly described the gathering as a convergence of technical experts focused on practical solutions rather than typical diplomatic formalities. While the challenges remain significant, the emphasis on global cooperation and expertise offers a promising path forward.
President-elect Donald Trump has appointed Andrew Ferguson as the next chair of the US Federal Trade Commission (FTC), signaling a dramatic policy shift for the agency. Ferguson, who joined the FTC as a commissioner earlier this year, is set to take over on ‘day one’ of Trump’s administration, replacing Lina Khan. Khan’s tenure focused on regulating Big Tech, earning praise for her aggressive antitrust stance.
Ferguson promises to reverse what he calls Khan’s ‘anti-business agenda’ and tackle what he terms ‘Big Tech censorship’ and ‘wokeness.’ He emphasises a commitment to protecting free speech and ensuring America’s leadership in technology and innovation. Ferguson’s policy blueprint, revealed in a document obtained by Punchbowl News, also includes plans to counter the ‘trans agenda’ as part of broader cultural battles tied to his vision for the FTC.
Trump also announced Mark Meador, an antitrust lawyer, as a nominee for FTC commissioner. Together, Ferguson and Meador aim to reshape the FTC into a body that prioritises competition, innovation, and what they describe as the restoration of free-market principles. These appointments mark a significant pivot from the current US administration’s regulatory approach to Big Tech.
