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.
TikTok‘s Canadian branch has filed an emergency motion with the country’s Federal Court to review a government order requiring it to cease operations due to national security concerns. The company, owned by China’s ByteDance, is challenging the December 5 order and seeking either its annulment or a return to the government for further review. The motion argues that shutting down TikTok’s Canadian operations could result in significant job losses.
The legal challenge comes after Canada began investigating TikTok’s plans to expand its business in the country last year. The investigation led to last month’s order, which did not block Canadian access to the app but mandated the company’s exit from the Canadian market. TikTok emphasised the importance of maintaining a local presence for its platform in Canada, where it has over 14 million monthly users.
Under Canadian law, the government can assess foreign investments’ risks to national security, though details of the investigations are kept confidential. The case follows similar actions in the US, where the government has pressured ByteDance to sell TikTok’s US assets by January 2025 or face a ban. TikTok is currently seeking a temporary block on this US law as well.
Chinese drone manufacturers DJI and Autel Robotics face potential bans in the US under a proposed military bill. The legislation requires a national security review within a year to assess risks posed by their drones. If no review occurs, the companies will automatically join the Federal Communications Commission’s ‘Covered List,’ effectively blocking the sale of new models.
DJI, the world’s largest drone producer, claims the process is unfair, citing extensive security audits and enhanced privacy features. Autel Robotics, also impacted by the proposal, has previously been flagged for investigation over national security concerns.
US lawmakers remain concerned about potential surveillance risks and data vulnerabilities linked to Chinese drones. DJI has refuted these claims, emphasising that no forced labour is involved in its production, despite customs citing related concerns to block imports.
The controversy reflects escalating tensions in US-China relations, particularly in technology and national security domains. The outcome of the proposed bill could reshape the landscape of the commercial drone market in the United States.
US government agencies are set to brief the House of Representatives on a widespread cyberespionage campaign allegedly linked to China. Known as Salt Typhoon, the operation reportedly targeted American telecommunications firms to steal call metadata and other sensitive information. A similar briefing was held for senators last week.
The White House revealed that at least eight US telecom companies had been affected, with a large number of citizens’ data compromised. Senator Ron Wyden is drafting legislation in response, while Senator Bob Casey expressed significant concern, noting that legislative action might be delayed until the new year.
On Wednesday, a Senate Commerce subcommittee will examine the broader risks posed by cyber threats to communication networks. Industry representatives, including Competitive Carriers Association CEO Tim Donovan, will contribute insights on best practices to counter such attacks.
China has denied the allegations, labelling them as disinformation, and reaffirmed its opposition to cyber theft. Officials and lawmakers continue to emphasise the gravity of the breaches, with Senator Richard Blumenthal calling the scale of Chinese hacking efforts ‘terrifying.’
Google has joined forces with TPG Rise Climate and other investors to back clean energy developer Intersect Power in a funding round exceeding $800 million. The investment aligns with Google’s strategy to expand its domestic data centre capacity as demand for AI-driven cloud services surges.
These data centres will be part of innovative industrial parks co-developed with Intersect Power, integrating gigawatts of clean energy generation alongside state-of-the-art computing facilities. That approach reflects a shift in addressing the growing strain on US power grids, exacerbated by the energy-intensive requirements of generative AI technologies.
By situating data centres adjacent to carbon-free power plants, Google aims to streamline energy delivery, enhance grid reliability, and fast-track project timelines. The first co-located facility is slated to begin operations in 2026, with full completion expected by 2027.
Google, a primary customer of Intersect Power’s new clean energy facilities, underscores that these projects are designed to launch simultaneously with their data centres. That directly contributes to grid stability while meeting Google’s operational energy needs. Founded in 2016, Intersect Power focuses on scalable, low-carbon energy solutions and is backed by TPG’s climate-focused fund.
