A coalition of 21 states and over 50 US lawmakers has supported the Justice Department’s mandate requiring China-based ByteDance to sell TikTok’s US assets by 19 January or face a ban. The collective, led by the attorneys general of Montana and Virginia, argues that TikTok threatens national security and consumer privacy, citing risks of the Chinese Communist Party exploiting user data.
Prominent lawmakers, including US Representative John Moolenaar and Representative Raja Krishnamoorthi, emphasised that the law offers a straightforward solution to mitigate the national security threats posed by TikTok’s ownership structure. The legislative measure, passed by Congress in April, reflects widespread concern over potential data access and surveillance by China.
In response, TikTok, its parent company ByteDance, and a group of TikTok creators have filed lawsuits to block the law. They argue that the ban violates the First Amendment rights of the 170 million Americans who use the app and claim no evidence supports the government’s security concerns.
The US Court of Appeals for the District of Columbia is set to hear oral arguments on the legal challenge on 16 September, amidst the lead-up to the 2024 presidential election. The outcome of this case could significantly impact TikTok’s future operations in the United States.
US progressive groups and Senator Elizabeth Warren have called on the Department of Justice to investigate Nvidia for potential anti-competitive practices, citing the company’s dominant position in the AI chip market. Nvidia’s market value surged to $3 trillion this summer, driven by high demand for its advanced chips used in AI models. The groups, including Demand Progress, criticised Nvidia’s bundling of hardware and software, arguing that it restricts competition and stifles innovation.
The Department of Justice has been directed to oversee potential antitrust probes into Nvidia, while the Federal Trade Commission is investigating other tech giants like Microsoft and OpenAI. Nvidia maintains that it follows all regulations and supports a wide range of industries and innovators.
With approximately 80% of the AI chip market and nearly 100% of the market excluding cloud providers’ custom chips, Nvidia’s dominance is significant. Senator Warren has expressed concerns about the risks of a single company controlling the AI market. The Department of Justice has not commented on the case’s specifics, but antitrust officials are concerned about potential bottlenecks in the industry.
OpenAI has assured US lawmakers it is committed to safely deploying its AI tools. The ChatGPT’s owner decided to address US officials after concerns were raised by five senators, including Senator Brian Schatz of Hawaii, regarding the company’s safety practices. In response, OpenAI’s Chief Strategy Officer, Jason Kwon, emphasised the company’s mission to ensure AI benefits all of humanity and highlighted the rigorous safety protocols they implement at every stage of their process.
a few quick updates about safety at openai:
as we said last july, we’re committed to allocating at least 20% of the computing resources to safety efforts across the entire company.
our team has been working with the US AI Safety Institute on an agreement where we would provide…
Over multiple years, OpenAI pledged to allocate 20% of its computing resources to safety-related research. The company also stated that it would no longer enforce non-disparagement agreements for current and former employees, addressing concerns about previously restrictive policies. On social media, OpenAI’s CEO, Sam Altman, shared that the company is collaborating with the US AI Safety Institute to provide early access to their next foundation model to advance AI evaluation science.
Kwon mentioned the recent establishment of a safety and security committee, which is currently reviewing OpenAI’s processes and policies. The review is part of a broader effort to address the controversies OpenAI has faced regarding its commitment to safety and the ability of employees to voice their concerns.
Recent resignations from key members of OpenAI’s safety teams, including co-founders Ilya Sutskever and Jan Leike, have highlighted internal concerns. Leike, in particular, has publicly criticised the company for prioritising product development over safety, underscoring the ongoing debate within the organisation about its approach to balancing innovation with security.
The United Arab Emirates recently cancelled meetings between US Congressional staffers and the Emirati AI firm G42 following US lawmakers’ concerns about the potential transfer of US AI technology to China. The intervention was personally handled by the UAE Ambassador to the US, who stopped the meetings involving the House Select Committee on China.
The cancelled meetings suggest diplomatic tension as US lawmakers, particularly those wary of China, examine the implications of the AI technology transfer to the Middle East. The US State Department has not commented, while a G42 spokesperson directed questions to the Emirati government. The UAE embassy’s spokesperson cited a miscommunication around the visit since the embassy officials were only made aware of the staff delegation shortly before it was about to arrive.
The staffers’ visit was intended to discuss the transfer of advanced chips from companies like Nvidia to the UAE and Saudi Arabia and the broader US-China tech competition. Amidst these concerns, the Biden administration has defended the G42-Microsoft deal, noting that it led to G42 cutting ties with China’s Huawei.
Speaking at the Bitcoin 2024 conference, Donald Trump emphasised the importance of the US leading in cryptocurrency, warning that failure to do so would allow China to dominate. He highlighted his plan to create a national ‘stockpile’ of bitcoin and establish a crypto advisory council if elected. Despite previously criticising cryptocurrency, Trump now promotes expanding US bitcoin mining.
Trump’s stance contrasts with that of Democrats, who he claims seek stricter regulation of the crypto sector. He criticised current regulatory actions and suggested that a strategic bitcoin reserve would legitimise digital currencies. The response from the crypto community has been mixed, with some seeing his proposals as a positive step.
Trump also reiterated his intent to commute Ross Ulbricht’s life sentence, creator of the Silk Road marketplace, sparking applause at the event. Meanwhile, some Democratic lawmakers are urging their party to adopt a more progressive approach to digital assets, recognising the growing influence of crypto enthusiasts in politics.
Why does this matter?
The change in Trump’s stance comes as global concerns about cryptocurrencies’ potential risks persist, including their impact on financial systems and susceptibility to crime. Despite these challenges, Trump’s advocacy for cryptocurrency reflects its emerging role in political discourse.
Top competition authorities from the EU, UK, and US have issued a joint statement emphasising the importance of fair, open, and competitive markets in developing and deploying generative AI. Leaders from these regions, including Margrethe Vestager of the European Commission, Sarah Cardell of the UK Competition and Markets Authority, Jonathan Kanter of the US Department of Justice, and Lina M. Khan of the US Federal Trade Commission, highlighted their commitment to ensuring effective competition and protecting consumers and businesses from potential market abuses.
The officials recognise the transformational potential of AI technologies but stress the need to safeguard against risks that could undermine fair competition. These risks include the concentration of control over essential AI development inputs, such as specialised chips and vast amounts of data, and the possibility of large firms using their existing market power to entrench or extend their dominance in AI-related markets. The statement also warns against partnerships and investments that could stifle competition by allowing major firms to co-opt competitive threats.
The joint statement outlines several principles for protecting competition within the AI ecosystem, including fair dealing, interoperability, and maintaining choices for consumers and businesses. The authorities are particularly vigilant about the potential for AI to facilitate anti-competitive behaviours, such as price fixing or unfair exclusion. Additionally, they underscore the importance of consumer protection, ensuring that AI applications do not compromise privacy, security, or autonomy through deceptive or unfair practices.
A congressional committee requested the CEO of the security company CrowdStrike, responsible for Friday’s widespread computer outage, to testify, intensifying legislative examination of the event. The House Homeland Security Committee’s Republican leaders have requested that CrowdStrike CEO George Kurtz testify on Capitol Hill by Wednesday to explain the causes of the outages and the mitigation measures being implemented.
Kurtz previously confirmed that a defective content update for Windows users caused the outages, impacting businesses and government organisations globally. Microsoft estimates that 8.5 million Windows devices were affected. Microsoft spokeswoman Kate Frischmann stated that the outages’ impact was due to CrowdStrike’s reach, not Microsoft’s. Security companies often have significant access within Windows to block attacks effectively, but this can also lead to negative escalation of issues when errors occur. Microsoft also highlighted how it must grant these companies such access due to a 2009 agreement with European antitrust authorities whereby Microsoft has to offer security companies the same powers it does to its own security products.
Why does it matter?
The global IT outage underscores the significant reliance on a limited number of software services, raising national security concerns and the lawmakers underscore the importance of learning from this event to safeguard critical infrastructure. CrowdStrike’s role in identifying malicious activities potentially also highlights the risk of international adversaries exploiting such vulnerabilities. As noted by FTC Chair Lina Khan, the incident has brought attention to the dependence on Microsoft products and the inherent fragility of concentrated systems.
The movement of illicit semiconductor chips to Russia has seen a notable decrease, according to the US Department of Commerce, driven by intensified efforts from Western nations to curb the flow of technology that could support Moscow’s military capabilities. However, China and Hong Kong continue to serve as significant transhipment hubs, enabling the ongoing, albeit reduced, supply of these critical components.
Western governments have ramped up measures to control the export of semiconductor chips and other sensitive technologies to Russia. These actions are part of broader sanctions aimed at restricting Russia’s access to advanced technology that could be used in military applications. Enhanced scrutiny and stricter enforcement of export controls have been pivotal in reducing the volume of chips reaching Russia.
According to the Semiconductor Industry Association (SIA), the volume of semiconductor chips illicitly reaching Russia has fallen by approximately 20% over the past six months. Despite the slowdown, China and Hong Kong remain key transhipment hubs for semiconductor chips destined for Russia. Playing a crucial role in the supply chain, they often serve as intermediary points where chips are re-exported to avoid detection.
China and Hong Kong are employing sophisticated methods to circumvent sanctions and export controls, including re-routing shipments, re-labelling products, using shell companies, misdeclaring goods, and complex supply chains.
Why does this matter?
Industry experts highlight that while the reduction in chip flows is a positive development, the continued role of China and Hong Kong as transhipment hubs poses ongoing challenges. The complex nature of global supply chains and the high demand for semiconductors make it challenging to eliminate illicit flows entirely.
According to sources, Nvidia is developing a version of its flagship AI chips for the Chinese market to comply with US export controls. The new chip, part of the ‘Blackwell’ series unveiled in March, is expected to be produced later this year. The ‘B200’ model in this series significantly outperforms its predecessor in tasks like chatbot responses. Nvidia is collaborating with its major Chinese distributor, Inspur, to launch this chip, tentatively named the ‘B20.’
In response to tighter US export controls introduced in 2023 to prevent advancements in Chinese supercomputing, Nvidia has created three chips specifically for China. Despite initial setbacks with the H20 chip, sales have surged, with projections of over 1 million units sold in China this year, amounting to over $12 billion. These developments highlight Nvidia’s strategic efforts to maintain its market presence amidst growing competition from Chinese firms like Huawei.
As the US continues to enforce and potentially expand semiconductor-related export restrictions, Nvidia’s actions reflect the broader impact on the global chip industry. The Biden administration’s plans to implement stricter controls on AI technology and efforts to influence policies in other major tech-producing countries underscore the ongoing geopolitical tensions in the semiconductor sector.
In a pioneering move, a technology company, Google, contracts with a broadcasting company to cover the Olympic and the Paralympic Games. NBC Universal, the official broadcast agency of the Olympic Games in the US, collaborates with the tech giant and Sports Committees to attract younger audiences and those who have grown accustomed to viewing short clips online.
How it is intended to work is sports commentators will use Google’s Gemini AI to narrate competitions, generate recaps, as an assistant to anchors, answer questions posed online and equip them with the content of informed research, and even entertain audiences.
Currently, Google’s AI overviews are used to provide synopses to queries posed in Google searches. These give ready-made short responses to questions posed by users without directing them to third-party websites via links.
