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With a pending law declaring the social media application TikTok illegal in the United States, set to take effect on Sunday, the incoming administration of U.S. President-elect Donald Trump is signaling that it plans to try to find a way to prevent the service from going offline.

Under current law, the service’s parent company, China-based ByteDance, must either sell TikTok to a non-Chinese firm or see it banned in the U.S.

Representative Mike Waltz, who has been tapped to serve as Trump’s national security adviser, told Fox News on Thursday that the president-elect has options available to postpone enforcement of the law while a possible deal is worked out to sell the company. That includes a section of the law allowing the president to give ByteDance a 90-day extension to finalize a sale.

“We will put measures in place to keep TikTok from going dark,” Waltz said, “as long as a viable deal is on the table. Essentially that buys President Trump time to keep TikTok going.”

Executive action reportedly considered

Also on Wednesday, several media outlets reported that Trump is considering issuing an executive order that would protect TikTok.

The legality of such a move is unclear and is thrown further into doubt by the fact that the Supreme Court is poised to rule on a request by the company to overturn the law.

The high court heard arguments in the case last week and is expected to rule shortly. The outcome is not certain. However, in oral arguments, a majority of the justices appeared to favor upholding the law.

Trump’s attitude toward TikTok has evolved considerably over the years. During his first term in office, he attempted to shut the service down in the U.S. Since then, though, he has used the service, with considerable success, to connect with his supporters.

In a press conference in Florida last month, Trump said, “I have a warm spot in my heart for TikTok,” and credited the app with helping him get his message out to younger American voters.

Trump has denied that his change of heart about TikTok was influenced by a brief meeting in March with Republican megadonor and ByteDance investor Jeff Yass. Lobbying disclosure reports from 2024 show that ByteDance paid a former Trump campaign aide to lobby lawmakers in Washington in favor of TikTok, and that former senior Trump aide Kellyanne Conway has been paid to advocate for TikTok in Congress via the Yass-funded conservative group Club for Growth.

Trump also said TikTok was not mentioned during his meeting with Yass.

Economic concerns

In the years since TikTok took off, thousands of U.S.-based content creators have developed large audiences on the app, and in many cases have been able to monetize their TikTok feeds.

Many small businesses have found success advertising their products to TikTok users. Other TikTok personalities have parlayed fame on the app into broader celebrity that has led to lucrative product endorsements and other deals.

Some members of Congress have expressed concern that abruptly shutting the app down could have economic consequences.

On Monday, Democratic Senator Edward Markey introduced legislation that would delay the TikTok ban by 270 days.

“Let me be clear: TikTok has its problems,” Markey said in a statement released by his office. “Like every social media platform, TikTok poses a serious risk to the privacy and mental health of our young people. I will continue to hold TikTok accountable for such behavior. But a TikTok ban would impose serious consequences on millions of Americans who depend on the app for social connections and their economic livelihood. We cannot allow that to happen.”

Viability of sale unclear

As the Sunday deadline nears, there have been a number of rumors about a possible sale of the company. Bloomberg reported on Wednesday that Chinese officials were considering the possibility of selling the service to billionaire Elon Musk, a close Trump adviser who already owns the social media service X, formerly Twitter.

Another U.S. billionaire, real estate developer Frank McCourt, told Reuters on Thursday that a consortium of investors he had formed has already made a formal offer to purchase TikTok, valuing the service at $20 billion.

However, it is far from clear that a sale is something the Chinese government is prepared to allow. Any sale worth the buyer’s investment would have to include the “recommendation engine,” TikTok’s name for the algorithm that makes the service so popular and, many would say, addictive.

Last year in a court filing, TikTok characterized such a deal as unavailable.

“Just as the United States restricts the export of U.S.-origin technologies (e.g., certain computer chips), the Chinese government regulates the transfer of technologies developed in China,” the company argued in a court filing. “The Chinese government has made clear in public statements that it would not permit a forced divestment of the recommendation engine.”

Privacy, national security worries

A wildly popular service for sharing short videos, TikTok has an estimated 170 million U.S. users. Federal officials have been concerned about TikTok for years because it collects vast amounts of information about its user base. They have argued that Chinese laws compelling domestic companies to cooperate with intelligence agencies could be used to force the company to share that data with the Chinese Communist Party.

U.S. officials have expressed concern that China could misuse the private information about U.S. users of the service. They have also warned that Beijing could use TikTok’s powerful recommendation algorithm to shape public discourse in the U.S. to the benefit of China.

In December, when a federal appeals court upheld the law mandating the company’s sale or shutdown, Democratic Representative Raja Krishnamoorthi, one of the original sponsors of the law, released a statement expressing the thoughts of many of the law’s supporters.

“With today’s opinion, all three branches of government have reached the same conclusion: ByteDance is controlled by the Chinese Communist Party, and TikTok’s ownership by ByteDance is a national security threat that cannot be mitigated through any other means than divestiture,” Krishnamoorthi said.

“Every day that TikTok remains under the Chinese Communist Party’s control is a day that our security is at risk,” Krishnamoorthi added.
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U.S. President-elect Donald Trump says he wants the United States to be the world leader in artificial intelligence and crypto currency. To that end, he has tapped a Silicon Valley entrepreneur and investor to be the AI and crypto czar. Michelle Quinn has the story.
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CAPE CANAVERAL, Florida — Blue Origin’s giant New Glenn rocket blasted off from Florida early Thursday morning on its first mission to space, an inaugural step into Earth’s orbit for Jeff Bezos’ space company as it aims to rival SpaceX in the satellite launch business.

Thirty stories tall with a reusable first stage, New Glenn launched around 2 a.m. ET (0700 GMT) from Blue Origin’s launchpad at the Cape Canaveral Space Force Station, its seven engines thundering for miles under cloudy skies on its second liftoff attempt this week.

Hundreds of employees at the company’s Kent, Washington headquarters and its Cape Canaveral, Florida rocket factory roared in applause as Blue Origin VP Ariane Cornell announced the rocket’s second stage made it to orbit, achieving a long-awaited milestone.

“We hit our key, critical, number-one objective, we got to orbit safely,” Cornell said on a company live stream. “And y’all we did it on our first go.”

The rocket’s reusable first stage booster was due to land on a barge in the Atlantic Ocean after separating from its second stage, but failed to make that landing, Cornell confirmed. Telemetry from the booster blacked out minutes after liftoff.

“We did in fact lose the booster,” Cornell said.

The culmination of a decade-long, multi-billion-dollar development journey, the mission marks Blue Origin’s first trek to Earth’s orbit in the 25 years since Bezos founded the company.

Bezos told Reuters on Sunday, before Blue Origin’s first launch attempt, that he was most nervous about landing the booster.

But he added that sticking the landing would be the “icing on the cake” if they could achieve the milestone of getting the payload to its intended orbit.

Secured inside New Glenn’s payload bay for the mission is the first prototype of Blue Origin’s Blue Ring vehicle, a maneuverable spacecraft the company plans to sell to the Pentagon and commercial customers for national security and satellite servicing missions.

The rocket’s first attempt to launch on Monday was scrubbed around 3 a.m. ET because ice had accumulated on a propellant line. On Thursday, the company cited no issues ahead of launch.

Bezos monitored the launch from a few miles away in Blue Origin’s mission control room, wearing a large headset and flanked by dozens of launch staff. The company’s CEO, Dave Limp, was next to him.

New Glenn is expected to press ahead with a backlog of dozens of missions worth hundreds of millions of dollars, including up to 27 launches for Amazon’s Kuiper satellite internet network that will rival SpaceX’s Starlink service.

New Glenn is the latest U.S. rocket to debut in recent years as governments and private companies beef up their space programs and race to challenge Elon Musk’s SpaceX and its workhorse Falcon 9.

NASA’s giant Space Launch System rocket had a successful debut in 2022, as did the Vulcan rocket last year from United Launch Alliance, Boeing and Lockheed Martin’s joint launch venture.

New Glenn is roughly twice as powerful as Falcon 9, the world’s most active rocket, with a payload bay diameter two times larger to fit bigger batches of satellites. Blue Origin has not disclosed the rocket’s launch pricing. Falcon 9 starts at around $62 million.

The development of New Glenn has spanned three Blue Origin CEOs and faced numerous delays as SpaceX grew into an industry juggernaut.

SpaceX’s giant, next-generation Starship rocket in development, which New Glenn will also compete with, is expected to further rattle the industry with cheap rides to space and full reusability.

Bezos in late 2023 moved to speed things up at Blue Origin, prioritizing the development of New Glenn and its BE-4 engines. He named Limp, an Amazon veteran, as CEO, who employees say introduced a sense of urgency to compete with SpaceX.
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BENGALURU — India became the world’s fourth nation on Thursday to achieve the feat of space docking, a technological milestone that underscores its ambitions to expand its share of a rapidly growing $400-billion global space market. 

Target and Chaser, two satellites of the Indian Space Research Organization (ISRO) that are each roughly the size of a large refrigerator, successfully latched onto each other Thursday morning, an agency spokesperson said. 

The indigenous technology, crucial for satellite servicing, space station operations, and interplanetary missions, positions India for a key role in commercial and exploratory space efforts. 

“India has ambitious missions planned and to achieve those, this is an important technology,” astrophysicist Jayant Murthy said. 

“Various missions, like building a space station, need assembly in space, which is not possible without space docking.” 

ISRO said the two satellites participating in its Space Docking Experiment (SpaDeX), will now be controlled as a single object, with power transfer checks made in the next few days. 

The mission had been postponed twice, first because the docking process needed further validation through ground simulations, and then to resolve an issue stemming from excess drift between the satellites. 

SpaDeX, launched on Dec. 30 from India’s main spaceport, deployed the satellites in orbit with an Indian-made rocket. 

Among 24 payloads and experiments were eight cowpea seeds, sent to space to study plant growth in microgravity conditions, which germinated within four days of the mission’s launch. 

Scientists say this is a critical step demonstrating that food can eventually be grown in space during long missions. 

The mission also will demonstrate the transfer of electric power between docked spacecraft, key to applications such as in-space robotics, composite spacecraft control and payload operations after undocking. 

Such techniques are essential for missions requiring multiple rocket launches. 

Space exploration and commercialization is a key part of Prime Minister Narendra Modi’s efforts to position India as a global superpower. 

The successful SpaDeX mission “is a significant stepping stone for India’s ambitious space missions in the years to come,” Modi said on X. 

On Thursday, India approved the setting-up of a third launch pad in the southern state of Andhra Pradesh, to be completed in four years at a cost of $461 million, giving a further boost to its space plans. 

ISRO is focused on deep-space exploration and enabling private companies to commercialize the sector, with projects ranging from solar studies to orbital astronaut missions and planetary defense, in collaboration with NASA. 

With the global commercial space market expected to reach $1 trillion by 2030, India aims to grow its share to $44 billion by 2040, up from $8 billion, or a slice of just 2%, now. 
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On Wednesday the U.S. Department of Commerce announced it would implement new export controls on certain biotechnology equipment, citing national security concerns relating to artificial intelligence and data science.

The Commerce Department warned that China could use the biotech equipment’s technology to bolster its military capabilities and help design new weapons using artificial intelligence.

The department said the technology has many applications, including its ability to be used for “human performance enhancement, brain-machine interfaces, biologically inspired synthetic materials and possibly biological weapons.”

The sanctions effectively restrict shipments of the technology to countries without a U.S. license, such as China.

The controls apply to parameter flow cytometers and certain mass spectrometry equipment, which according to the Commerce Department, can “generate high-quality, high-content biological data, including that which is suitable for use to facilitate the development of AI and biological design tools.”

Last week, the Chinese Embassy in Washington said Beijing “firmly opposes any country’s development, possession or use of biological weapons.”

This latest move by the United States follows recent policy decisions that reflect Washington’s broad aim to limit Beijing’s access to U.S. technology and data.

Washington announced on Monday that it would tighten Beijing’s access to AI chip and technology exports by implementing new regulations that cap the number of chips that can be exported to certain countries, including China, Russia, Iran and North Korea.

This month, the ban on popular Chinese-owned social media TikTok is planned to go into effect due to U.S. concerns over its potential to share sensitive data with China’s government.
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TAIPEI, TAIWAN — As TikTok’s Sunday deadline to divest or face a U.S. ban approaches, hundreds of thousands of American users of the popular social media video app say they are migrating to another Chinese social media app, Xiaohongshu, or RedNote.

Dubbing themselves “TikTok Refugees,” some say they are making the move in search of a new home; others say their exodus is a form of protest against the ban.

With just days to go before the deadline, users are facing growing uncertainty as they wait for a ruling from the U.S. Supreme Court on whether the ban will be upheld. Reports are now suggesting that TikTok may just shut down its operations in the United States if the ban goes through.

“Our government is out of their mind if they think we are going to stand for this TikTok ban,” said American user Heather Roberts in one video on Xiaohongshu. “We are just going to a new Chinese app and here we are.”

Sky Bynum, an 18-year-old makeup content creator in the eastern state of New Jersey, told VOA that she is joining Xiaohongshu because she wants to find another social media site with a sense of community.

“The best thing about TikTok is the community on there,” Bynum told VOA in a video interview via Zoom. “When I posted my first few makeup videos, TikTok pushed them to the makeup people and I instantly found my community. I think [the potential ban on TikTok] is awful because I’m not going to have the same thing that I had on TikTok.

“Xiaohongshu is really cool because a lot of TikTok users were trying to find new communities on Xiaohongshu,” Bynum added.

Founded in 2013, Xiaohongshu is similar to Instagram and Pinterest. It currently has around 300 million users, most of them in China, and is widely used to share travel tips, makeup tutorials, and fashion trends.

The name literally means “little red book” but the company says it’s not a reference to former Chinese Communist Party leader Mao Zedong’s collection of sayings.

Downloads surge

With many promoting and talking about their exodus to Xiaohongshu on “TikTok Refugees,” Xiaohongshu became the most downloaded app on Apple’s U.S. App Store this week.

More than 700,000 new users have joined Xiaohongshu this week, according to Reuters. Downloads of the app rose more than 200% year-over-year this week, according to app data research firm Sensor Tower.

With more American users expected to join Xiaohongshu, some Chinese users recorded English tutorials or welcome videos for American users.

“I guess [there has] never been a lifetime or history time [that] a platform has Chinese and Americans come together and have direct views. So welcome and we respect you,” Zhou Shu-Fu, a Chinese Xiaohongshu user from the southwestern province of Sichuan, said in a video released on Jan. 15.

Compared to Chinese social media users’ enthusiasm, the Chinese government offered a more cautious comment on the influx of American TikTok users to Xiaohongshu, describing the phenomenon as a “personal choice.”

“China has always supported and encouraged strengthening cultural exchanges and promoting mutual understanding among the peoples of all countries,” Chinese foreign ministry spokesperson Guo Jiakun said during the regular press conference on Wednesday.

The influx of American users has also prompted Xiaohongshu to build Chinese-English translation tools and hire English content moderators, according to the Reuters news agency and Chinese media outlets. Most of the posts on the app are in Chinese and RedNote does not have an auto-translate function.

Some American users tell VOA that their interactions with Chinese users are helping to increase their curiosity about China.

“My experience on RedNote makes me realize how toxic American social media has gotten and I’m excited to learn some basic Chinese and learn about what it’s really like in China,” Kia Epley, a 44-year-old engineer from Las Vegas, told VOA in a video interview.

TikTok content creators say they are looking for more than just a safe and welcoming community. One key concern for them is how they can keep making a living on social media.

“Most of my income is made on TikTok so if the ban comes into effect, a big chunk of my income will get taken away,” said Essence Whitaker, a 28-year-old makeup content producer in Michigan.

“A lot of content creators in the U.S. will be unemployed,” she told VOA in a video interview.

VOA reached out to TikTok for comment on the exodus but has yet to receive a response.

Tech media The Information reported on Tuesday that TikTok plans to shut the app for American users when the federal ban comes into effect on Sunday, citing anonymous sources with knowledge of the matter.

Trend or temporary protest?

While the migration of American users to Xiaohongshu continues, some users say it remains unclear whether the exodus is a temporary phenomenon or a long-term trend. TikTok has more than 170 million users and so far, less than a million have moved over to Xiaohongshu.

“I don’t think the move to Xiaohongshu is going to be long-term because the biggest thing that creators worry about is monetization. Xiaohongshu doesn’t have that feature so I think other creators are still looking for an alternative to TikTok,” Bynum in New Jersey told VOA.

But others say similarities between TikTok and Xiaohongshu may help convince some American users to stay on the Chinese app.

“I like how real TikTok is because you get to see people’s natural reactions,” said Whitaker in Michigan, adding that Xiaohongshu has that same vibe.

“While I can’t tell whether people are going to stay on the app or not, I think the authenticity of the content will keep some users on there,” she told VOA in a video interview.

While many American users are excited about the prospect of Xiaohongshu being an alternative to TikTok, some analysts describe the mass migration as “going from the frying pan into the fire.”

“TikTok is owned by a Chinese company but it has international operations, which means there are theoretically several layers between TikTok and the Chinese Party-State,” said Bethany Allen, the head of China Investigations and Analysis at the Australian Strategic Policy Institute.

But “there are no layers of insulation between Xiaohongshu and Beijing,” she told VOA by phone, adding that issues such as political censorship or lack of data privacy protection could be “far worse” on Xiaohongshu than TikTok.

American users “are going to have absolutely no power to pressure Xiaohongshu as a company to do anything,” Allen added.

VOA has reached out to Xiaohongshu for comment but has yet to receive a response.

And despite the friendly interactions between Chinese and American users on Xiaohongshu over the last few days, experts said the “honeymoon period” may not last long.

“I think the Chinese government is probably going to get spooked [by the interaction between American users and Chinese users],” Sarah Cook, an independent China analyst, told VOA by phone.

She added that Beijing could impose a temporary shutdown on Xiaohongshu to implement some moderation or initiate “a mass cleanout” of accounts or content deemed inappropriate or sensitive on the app.

VOA’s Katherine Michaelson contributed to this report.
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Two moon landers built by private U.S. and Japanese companies are on their way to the moon after lifting off early Wednesday on a shared ride aboard a SpaceX rocket.

The launch from NASA’s Kennedy Space Center in Florida is the latest in a public-private program that put a spacecraft from Intuitive Machines on the moon last year.

Wednesday’s launch included a lander from Japanese space exploration company ispace that is carrying a rover with the capability of collecting lunar dirt and testing potential food and water sources on the moon.

The spacecraft is also carrying a small red “Moonhouse” built by Swedish artist Mikael Genberg.

The ispace mission is expected to reach its destination on the moon’s far north in four to five months.

The company is making its second attempt at a lunar landing, after a 2023 mission failed in the final stages. 

Also aboard the rocket heading toward the moon is a lander from U.S. company Firefly Aerospace that is set to carry out 10 experiments for NASA.

The planned experiments include gathering dirt and measuring subsurface temperatures.

The spacecraft is expected to arrive in about 45 days.

Some information for this story was provided by The Associated Press, Agence France-Presse and Reuters
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WASHINGTON — U.S. President Joe Biden signed on Tuesday an executive order to boost development of artificial intelligence infrastructure in America. A day earlier, his administration announced sweeping measures to block access to the most advanced semiconductors by China and other adversaries.

But the U.S. left India, its strategic partner in the Indo-Pacific, off a list of 18 countries that are allowed unrestricted access to advanced AI chips. Analysts say while a growing technological relationship between the two countries would likely make India eligible in the future to access advanced U.S. AI chips, New Delhi’s existing ties with Moscow and the perception of a less robust technology regulatory framework led to its exclusion from the top list.

Exclusion not a surprise

The Commerce Department’s policy framework divides the world into three categories. The first tier includes the U.S. and 18 countries with unrestricted access, followed by a list of more than 100 countries that will be subjected to new caps on advanced semiconductors with individual exemptions. The third tier includes adversaries such as China and Russia that face maximum restrictions.

India falls in the second category, along with U.S. allies like Israel and close friends such as Singapore.

Bhaskar Chakravorti, the dean of global business at The Fletcher School of Law and Diplomacy at Tufts University in Massachusetts, said that India’s relationship with Russia “puts it outside a super safe category.”

India has had close ties with Russia since the Soviet Union supported its desire for independence from Britain. It maintained those ties during the Cold War, when the U.S. sided with India’s rival Pakistan.

Scott Jones, a non-resident fellow at Washington’s Stimson Center think tank, highlighted recent reports that accused a few Indian companies of aiding Russia’s war on Ukraine, but stressed that while being excluded is a disappointment, it’s “not a setback for India.”

He also pointed to the perception that “India’s ability to control and manage technology is perhaps not as robust as evidenced in some of the 18 countries.”

While India may be off the unrestricted list for now, analysts say its growing technological cooperation with the U.S. may shield it from some curbs.

Richard Rossow, senior adviser and chair on India and Emerging Asia Economies at Washington’s Center for Strategic and International Studies, said the presence of caveats in the new framework would ensure India’s later participation.

“The fact that they have announced that there will be a pathway for some countries to get exemptions that are above what they’re going to consider the standard cap, India, I imagine, would be on the short list of countries,” he told VOA.

In early January, national security adviser Jake Sullivan traveled to India and met with Prime Minister Narendra Modi and other senior officials. During the trip, both sides reiterated their commitment to forge a “strategic technology partnership” and strengthen cooperation under the U.S.-India initiative on Critical and Emerging Technology (iCET), a bilateral mechanism focused on technology partnership.

On semiconductors, the U.S. is facilitating investments in India’s semiconductor manufacturing and intensifying R&D collaboration.

During his trip, Sullivan highlighted the investment of $2.7 billion in India by U.S. chipmaker Micron to create semiconductor packaging facilities, which he hoped would contribute to establishing “India as a new hub in the global chip ecosystem.”

The Indian government too is investing billions of dollars through its dedicated program called the India Semiconductor Mission and Production Linked Incentive scheme.

Rossow argued that the Indian government would not have been “terribly surprised” that “they were not included” in the list.

Jones of the Stimson Center agreed.

“Jake Sullivan was in New Delhi last week, and I would be very surprised if he did not inform his Indian counterparts of what was going to happen,” he said.

Ensuring America’s leadership in AI

The Biden administration has focused on the centrality of artificial intelligence to America’s security and economic strength. According to a White House factsheet, the latest steps are part of its effort to prevent offshoring this critical technology and ensure that “the world’s AI runs on American rails.”

Since October 2022, the U.S. government has enacted a series of export controls, blocking access of advanced semiconductors to China to prevent its use for military applications. While initially the measures adversely affected the Chinese semiconductor industry, Beijing has continued to advance its capabilities and is attempting to narrow the technology gap.

According to Chakravorti of the Fletcher School, there are numerous implementation challenges of this expansive global strategy.

“From lobbying from the U.S. chipmakers that will start as soon as Trump takes office to potential leaks in the carefully calibrated list of countries. Will there be a secondary market? How does this affect where future data centers are built?” he asked.

Jones of the Stimson Center argued that the policy is more a “symbolic gesture than a practical consideration” but has a stern message for the rest of the world.

“The U.S. is clearly saying, if you want to participate in the U.S.-sponsored AI ecosystem, you have to pick now. You pick China or you pick us. You can’t have it both ways. You can’t play one off against the other. You have to choose,” he concluded.
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Elon Musk was sued on Tuesday by the U.S. Securities and Exchange Commission, which accused the world’s richest person of waiting too long to disclose in 2022 he had amassed a large stake in Twitter, the social media company he later bought.

In a complaint filed in Washington, the SEC said Musk violated federal securities law by waiting 11 days too long to disclose his initial purchase of 5% of Twitter’s common shares.

An SEC rule requires investors to disclose within 10 calendar days, or by March 24, 2022, in Musk’s case, when they cross a 5% ownership threshold.

The SEC said that at the expense of unsuspecting investors, Musk bought more than $500 million of Twitter shares at artificially low prices before finally revealing his purchases on April 4, 2022, by which time he owned a 9.2% stake.

Twitter’s share price rose more than 27% following that disclosure, the SEC said.

Tuesday’s lawsuit seeks to force Musk to pay a civil fine and disgorge profits he didn’t deserve.

Musk eventually purchased Twitter for $44 billion in October 2022, and renamed it X.

Alex Spiro, a lawyer for Musk, in an email called the SEC lawsuit the culmination of the regulator’s “multi-year campaign of harassment” against his client.

“Today’s action is an admission by the SEC that they cannot bring an actual case,” he said. “Mr. Musk has done nothing wrong and everyone sees this sham for what it is.”

Spiro added that the lawsuit addresses a mere “alleged administrative failure to file a single form — an offense that, even if proven, carries a nominal penalty.”

Musk, an adviser to U.S. President-elect Donald Trump, is worth $417 billion according to Forbes magazine, through businesses such as the electric car maker Tesla and rocket company.

He is worth nearly twice as much as Amazon.com founder Jeff Bezos, the world’s second-richest person at $232 billion, Forbes said.

The SEC sued Musk six days before Trump’s January 20 presidential inauguration.

SEC Chairman Gary Gensler is stepping down that day, and Paul Atkins, who Trump nominated to succeed him, is expected to review many of Gensler’s rules and enforcement actions.

Musk has also been sued in Manhattan federal court by former Twitter shareholders over the late disclosure.

In that case, Musk has said it was implausible to believe he wanted to defraud other shareholders, and that “all indications” were that his delay was a mistake.

Musk has long feuded with the SEC, including after it sued him in 2018 over his Twitter posts about possibly taking Tesla private and having secured funding to do so.

He settled that lawsuit by paying a $20 million civil fine, agreeing to have Tesla lawyers review some Twitter posts in advance, and giving up his role as Tesla’s chairman.

The SEC also sought sanctions from Musk after he missed court-ordered testimony last September for the Twitter probe so he could attend the launch of SpaceX’s Polaris Dawn mission at Florida’s Cape Canaveral.

A federal judge in San Francisco rejected that request, because Musk later testified and agreed to pay the SEC’s travel costs.
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The White House says it has finalized rules that crack down on Chinese and Russian automobile technology effectively banning all personal smart cars from the two countries from entering the U.S. market.

In a White House fact sheet detailing the decision, the Biden administration Tuesday said that while connected vehicles offer advantages, the involvement of foreign adversaries such as China and Russia in their supply chains presents serious risks granting “malign actors unfettered access to these connected systems and the data they collect.”

“The Department of Commerce has issued a final rule that will prohibit the sale and import of connected vehicle hardware and software systems, as well as completed connected vehicles, from the PRC and Russia,” the fact sheet said.

PRC is the acronym for China’s official name, the People’s Republic of China.

Connected vehicles are smart cars that are designed to be convenient for consumers and provide safety for drivers, passengers, and pedestrians through the use of many connected parts such as Wi-Fi, Bluetooth, cellular, and satellite connectivity.

“Cars today aren’t just steel on wheels; they’re computers,” said Commerce Secretary Gina Raimondo when speaking on the rule.

“This is a targeted approach to ensure we keep PRC- and Russian-manufactured technologies off American roads,” said Raimondo.

The new rule is the “culmination of a year-long examination” of potential risks posed by connected vehicles and will “help the United States defend against the PRC’s cyber espionage and intrusion operations, which continue to pose a significant threat to U.S. critical infrastructure and public safety.”

The crackdown on cars follows Washington’s announcement earlier this month that the U.S. consider new rules aimed at addressing risks posed by drones that utilize technology from China and Russia.

The U.S. has repeatedly emphasized the need to balance technological progress with the protection of national security interests.
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— U.S. President Joe Biden issued an executive order Tuesday directing the development of artificial intelligence data centers on six federal land sites, with a special focus on powering them with clean energy and upholding high labor standards. 

Biden said in a statement that the United States is the world leader in AI, but cannot take that lead for granted. 

“We will not let America be out-built when it comes to the technology that will define the future, nor should we sacrifice critical environmental standards and our shared efforts to protect clean air and clean water,” Biden said. 

The order calls for the Department of Defense and Department of Energy to each identify three suitable sites where private companies will lease the land, pay for the construction and operation of the data centers and ensure the supply of enough clean energy to fully power the sites. 

The developers will also have to buy “an appropriate share” of semiconductors produced in the United States to help ensure there is a “robust domestic semiconductor supply chain,” the White House said. 

In addition to identifying the sites, the federal government will also commit under the order to expedite the permitting process for the data center construction. 

Senior administration officials, in a phone call with journalists previewing the order, highlighted the national security need for the United States to have its own powerful AI infrastructure, both to protect it for its own use but also to prevent adversaries such as China from possessing those capabilities. 

“From the national security standpoint, it’s really critical to find a pathway for building the data centers and power infrastructure to support frontier AI operations here in the United States to ensure that the most powerful AI models continue to be trained and stored securely here in the United States,” an official said. 

A senior administration official cited the priority of making sure the AI industry had an anchor in the United States to avoid repeating the history of other technologies that moved offshore to areas with lower labor and environmental standards as well. 

AI chip restrictions 

Tuesday’s order comes a day after the Biden administration announced new restrictions on the export of the most advanced artificial intelligence chips and proprietary parameters used to govern the interactions of users with AI systems.    

The rule, which will undergo a 120-day period for public comments, comes in response to what administration officials described as a need to protect national security while also clarifying the rules under which companies in trusted partner countries could access the emerging technology in order to promote innovation.   

“Over the coming years, AI will become really ubiquitous in every business application in every industry around the world, with enormous potential for enhanced productivity and societal, health care and economic benefits,” Commerce Secretary Gina Raimondo told reporters. “That being said, as AI becomes more powerful, the risks to our national security become even more intense.”   

A senior administration official said the new rule will not include any restrictions on chip sales to Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan, the United Kingdom or the United States.   

The rules build on 2023 curbs limiting the export of certain AI chips to China, a strategic competitor in the production of advanced semiconductors. Beijing attacked the new U.S. AI edict as a “flagrant violation” of international trade rules.  

China’s Ministry of Commerce said the Biden administration announcement “is another example of the generalization of the concept of national security and the abuse of export control, and a flagrant violation of international multilateral economic and trade rules.”  

Beijing said it would “take necessary measures to firmly safeguard its legitimate rights and interests.” 

Countries that are under U.S. arms embargoes are already subject to export restrictions on advanced AI chips, but a senior administration official said they will now be under restrictions for the transfer of the most powerful closed weight AI models.    

The weights in an AI model determine how it processes the inputs from a user and determines what to provide the user as a response, according to the National Telecommunications and Information Administration. In a closed weight system, those parameters are secret, unlike with an open weight system in which users could see the settings the model is using to make its decisions.    

Most countries — those not included in the closed partner or arms embargo lists — will not face licensing requirements for obtaining the equivalent of 1,700 of the most advanced AI chips currently available, nor for any less advanced chips.   

Companies in the United States and allied countries will not face restrictions in using the most powerful closed weight AI systems, provided they are stored under adequate security, a senior administration official said. 

 
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LONDON — Britain’s antitrust regulator said on Tuesday it would investigate Google’s search services using its new powers to see how they impact consumers and businesses, including advertisers, news publishers and rival search engines.

The Competition and Markets Authority, which has gained new powers to examine big tech, said search was vital for economic growth and it was critical that competition was working well.

“Millions of people and businesses relied on Google’s search and advertising services – with 90% of searches happening on their platform and more than 200,000 UK businesses advertising there,” CMA boss Sarah Cardell said in a statement.

“It’s our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal.”

The CMA’s move comes after U.S. prosecutors in November argued to a judge that Google must sell its Chrome browser, share data, and search results with rivals, and take a range of other measures to end its monopoly on online search.

Google did not immediately respond to a request for a comment.
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CAPE CANAVERAL, Fla. — Blue Origin will try again to launch its massive new rocket as early as Tuesday after calling off the debut launch because of ice buildup in critical plumbing.

The 98-meter New Glenn rocket was supposed to blast off before dawn Monday with a prototype satellite. But ice formed in a purge line for a unit powering some of the rocket’s hydraulic systems and launch controllers ran out of time to clear it, according to the company.

Founded by Amazon’s Jeff Bezos, Blue Origin said Tuesday’s poor weather forecast could cause more delay. Thick clouds and stiff wind were expected at Cape Canaveral Space Force Station.

The test flight already had been delayed by rough seas that posed a risk to the company’s plan to land the first-stage booster on a floating platform in the Atlantic.

New Glenn is named after the first American to orbit Earth, John Glenn. It is five times taller than Blue Origin’s New Shepard rocket that carries paying customers to the edge of space from Texas.

Bezos founded the company 25 years ago. He took part in Monday’s countdown from Mission Control, located at the rocket factory just outside the gates of NASA’s Kennedy Space Center.

No matter what happens, Bezos said this weekend, “We’re going to pick ourselves up and keep going.”
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