Sony Group has confirmed it is now the largest single shareholder in Kadokawa, in an investment deal worth around 50 billion yen ($320 million). 

The agreement will increase Sony’s holding in the Japanese media conglomerate to 10%, with both entities signing a “strategic capital and business alliance” to pursue further collaboration for mutual benefit.

The deal with the parent company of FromSoftware puts a full takeover on hold, which it was reportedly open to. Sony is said to be keen to exploit opportunities around anime and video games, while a full takeover would have cost more than 10 times the amount it has shelled out for its 10% stake.

Hiroki Totoki, President, COO, and CFO of the Sony Group Corporation said: 

“Through this capital and business alliance, we will become the largest shareholder of Kadokawa, which consistently creates a wide variety of IP, including publications and books, such as light novels and comics, as well as games and anime.”

He added the agreement would see the companies “work closely together” as part of separate, but aligned aspirations. 

Takeshi Natsuno, CEO of Kadokawa Corporation stated, “This alliance is expected to not only further strengthen our IP creation capabilities, but also increase our IP media mix options with Sony’s support for global expansion, allowing us to deliver our IP to more users around the world.” 

Sony is now the largest shareholder in KADOKAWA after acquiring 12M+ new shares, now holding 10% of the company shares pic.twitter.com/Hy5IA5VOyu

— ScreenTime (@screentime) December 19, 2024

Shared interests in anime and scope for growth

Although the announcement was light on the finer details of the enhanced partnership, there was a mention of adapting Kadokawa’s IP into live-action films and TV shows, as well as developing anime, which would utilize Sony’s vast entertainment portfolio capability.

There is plenty of scope for growth and potential success with Kadokawa’s business interests fitting nicely into Sony’s entertainment offerings including anime, manga, TV, and film. 

Kadokawa – which suffered a malicious cyberattack earlier this year – is already a significant publisher of anime, while Sony is the owner of anime streamers Crunchyroll and Funimation.

Sony and Kadokawa have a further shared interest in the prospects of FromSoftware, as the former holds a 14% minority stake, while the latter is the majority owner with around 70% of the video game developer.

Image credit: Via Midjourney

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The US Supreme Court has agreed to hear from TikTok’s ByteDance once more to hear their case on January 10.

This comes after President Joe Biden signed into law a ban on the platform on April 24, 2024. It is owned by ByteDance which is based in China.

The bill requires the app to either be sold or banned by January 19, but the company may now have a last-ditch attempt to change its fate.

On December 16, TikTok requested an injunction from the Supreme Court which aims to block the ban until the conservative majority court rules on its legality or dismisses the case.

Two days later, on December 18, the Supreme Court announced it will review TikTok’s challenge against the federal law and oral arguments have been scheduled for January 10. This is set to take place just days before the law becomes effective.

TikTok ‘pleased’ the Supreme Court will hear from them once more

The social media platform said it was “pleased” with the order. “We believe the Court will find the TikTok ban unconstitutional so the over 170 million Americans on our platform can continue to exercise their free speech rights,” writes the company in a news update.

The date of the ban is the day before the presidential inauguration of Donald Trump who will return to office for his second term, after originally serving as US president between 2017 and 2021.

According to CNN, the CEO of TikTok Shou Chew met with the President-elect at his Mar-a-Lago estate on December 16.

News — Trump is meeting with TikTok CEO Shou Chew at his Mar-a-Lago Club today, I'm told. That comes hours after the president-elect suggested he might reverse course on the impending ban on the app in the US, as TikTok is now asking the Supreme Court to step in.

— Kaitlan Collins (@kaitlancollins) December 16, 2024

While the entrepreneur previously tried to ban the app in 2020, he now may be the person who could save it. At a news conference on Monday, he suggested that his electoral victory was in part due to his use of TikTok.

When he was asked in a news conference about TikTok and the upcoming ban, he said “We’ll take a look at TikTok.”

Featured Image: AI-generated via Ideogram

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Nvidia has released a new mini-PC specifically aimed at developers and hobbyists working in the artificial intelligence space. It’s a follow-up to their previous single-board computer (SBC), Jetson Nano released in 2019 and part of the company’s mega push into AI.

Dubbed Jetson Orin Nano Super, it’ll provide improved performance for AI applications, as well as a bump in performance. While there are a lot of SBCs on the market, Nvidia’s is particularly interesting as the company rarely produces its own PC systems.

Nvidia is known for its graphics cards (GPU), and more recently, its AI hardware. The company has exploded in value due to its continued developments in the space, as well as providing a vast majority of companies with the necessary equipment.

This particular board comes with an ARM Cortex A78E processor and a custom Nvidia GPU with 1024 CUDA cores and 32 Tensor Cores. It’s not the most powerful machine in the world, but in the SBC space, it’s reasonably powerful.

It’ll also provide 67 TOPs (trillions of processes per second), which is how AI is measured. For comparison, the SBC Raspberry Pi 5 and its AI kit can provide around 13 TOPs. An M4 Mac Mini can do 38 TOPS.

Nvidia has included a custom version of Linux for projects to run on, complete with Nvidia theming.

Nvidia Jetson Orin Nano performance is impressive – so is its price

In a video breaking down its performance by Dave’s Garage, the Orin was put through its paces with a local large language model (LLM). This is essentially like running your own version of ChatGPT.

Using Meta’s Llama 3.2, it managed to run at 21 tokens a second. A token is the metric used to count how many characters an LLM can produce. OpenAI’s estimates put it at 4 characters per second.

Compared to major PC rigs or workstations that are running LLMs, it’s not much. However, when you consider it only draws 25 watts of energy at its maximum output, it’s very impressive. It manages this by leveraging the CUDA cores, Nvidia’s tech for processing.

The Jetson Orin Nano isn’t going to be someone’s replacement PC. It’s more for development, and eventually to be built into an embedded solution or be the jumping-off point for a larger project.

The Jetson Orin Nano is also interesting thanks to its price point. Nvidia has slashed the price from $499 to $249, making it a cheaper entry point into AI development. Since the pandemic and electronics shortage, as well as cryptocurrency jacking up the price of graphics cards thanks to scarcity, Nvidia has rolled with it.

Its prices on GPUs have inflated, with the upcoming RTX 5090 rumored to be north of $1500 and nearing $2000. Even its lower-end cards, like the RTX 4060, have been criticized for being overtly expensive compared to the competition.

Nvidia has its big CES 2025 event coming up, where it’ll share more about the world of AI and its future for gaming hardware. We’ve yet to see what the Nano can do gaming-wise, however.

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The Democratic Republic of Congo has taken legal action against Apple subsidiary firms in France and Belgium, alleging the tech giant has embedded the use of conflict minerals in its supply chain.  

The Central African country is a major regional source of tin, tantalum, and tungsten, with the components widely used in the manufacturing of smartphones and computers. 

However, the contention arises from some mining sites being operated by militias, said to be responsible for widespread massacres, mass rapes, and other serious crimes, according to UN experts. 

As reported by Reuters, international lawyers representing Congo have made their case that Apple is benefiting from the minerals obtained in the country and then laundered through well-established supply chains. 

The U.S. tech multinational has refuted the claims, adding it does not directly source the minerals, opting to screen and audit suppliers with reports regularly collated on the process.

In a 2023 filing to the U.S. Securities and Exchange Commission (SEC), Apple indicated none of its supply chain partners had financed or been involved in transactions with armed groups in Congo or elsewhere.

In other Apple news, the company is said to be eyeing a 2028 launch for its foldable iPad prototype.

Belgium’s moral duty to act in Congo

Specifically, complaints were filed at the prosecutor’s office in Paris, and Belgium’s investigating magistrate’s office. Congo has alleged that local subsidiaries including Apple France, Apple Retail France, and Apple Retail Belgium are guilty of an array of offenses. 

This includes covering up for war crimes, laundering materials, and handling stolen components.

“It is clear that the Apple group, Apple France, and Apple Retail France know very well that their minerals supply chain relies on systemic wrongdoing,” said the French complaint, citing UN reports on the ongoing conflict situation in the east of Congo.

Referencing Belgium’s colonial history with Congo, the African nation’s Belgian solicitor Christophe Marchand asserted that it has a particular moral duty to take action.

Over the last three decades, Congo has been embattled due to the ongoing conflict as different actors seek to gain a foothold in the mining fields. 

These areas have been besieged by armed groups, some backed by neighboring Rwanda and the Congolese military, as waves of violence ebbed and flowed.

Millions of civilians have died or been displaced, as a result of the turmoil.

Image credit: Via Midjourney

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Cybercriminals may begin releasing the personal data of numerous Rhode Islanders as soon as this week following a significant cyberattack on the state’s online system for delivering health and human services benefits, Governor Daniel McKee announced.

State officials said on Saturday (Dec. 14) that the personal and banking information of hundreds of thousands of Rhode Island residents, including Social Security numbers, was likely compromised in a cyberattack by an international criminal group demanding ransom.

The state has urged Rhode Islanders to take steps to safeguard their personal information, which may include names, addresses, dates of birth, Social Security numbers, and certain banking details.

What was affected in the Rhode Island cyberattack?

Governor Dan McKee announced Friday (Dec. 13) that the breached data impacts individuals have been using state government assistance programs since 2016, including the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families, and healthcare purchased through HealthSource RI.

The RIBridges system was taken offline after the state was notified by its vendor, Deloitte, of the security threat. According to the state, the vendor confirmed a “high probability” that a cybercriminal had accessed files containing personally identifiable information from RIBridges.

To assist affected Rhode Islanders, the state has partnered with Experian to provide a toll-free hotline offering information about the breach and guidance on protecting personal data.

Staff can provide info about the breach and data protection steps individuals can take today.

Once analysis is complete, impacted individuals will receive a letter with info on how to secure free credit monitoring.

— Governor Dan McKee (@GovDanMcKee) December 15, 2024

Writing on X, McKee stated: “Staff can provide info about the breach and data protection steps individuals can take today.

“Once analysis is complete, impacted individuals will receive a letter with info on how to secure free credit monitoring.”

According to The New York Times, Karen Walsh, a spokeswoman for Deloitte, stated that the attack was carried out by “an international cybercriminal group” and noted that the company launched an investigation “in collaboration with our client and law enforcement officials.”

Brian Tardiff, RI's Chief Digital Officer and Chief Information Officer calls the cyberattack "extortion type activity."https://t.co/KMnYmkMNl6 @wpri12 pic.twitter.com/hKrS3lca0f

— Alexandra Leslie (@AlexandraLeslie) December 14, 2024

Brian Tardiff, Rhode Island’s Chief Digital Officer, described the cyberattack as “extortion type activity.” He further explained that the malware discovered in the system had the potential to cause “catastrophic damage.”

It is not the first time the American healthcare system has faced this kind of breach. In February, ReadWrite reported that U.S. health tech giant Change Healthcare was targeted by a ‘Blackcat’ ransomware group.

Featured image: Ideogram

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YouTube TV subscribers will see their membership rate increase in the new year as the company ups the price.

In a post on X (formerly Twitter) the YouTube TV account shared the news, stating it has “always worked to offer the content you love, with features to enjoy the best of live TV.”

The company says it is having to update monthly prices to “keep up with rising content costs,” with the new price being $82.99 a month – up from $72.99.

A message for our members: we have always worked to offer the content you love, with features to enjoy the best of live TV. To keep up with rising content costs, we’re updating our monthly price to $82.99/mo. (1/3)

— YouTube TV (@YouTubeTV) December 12, 2024

This won’t impact existing members immediately though, as the new pricing will kick in on January 13. For anyone looking to start a membership, they will be charged the new price.

YouTube TV is an expansion from the free-for-use video platform, with people able to watch live TV from broadcast networks, live sports, cable and premium networks, and have unlimited DVR space.

YouTube TV pricing jumps – marking a major rise since its launch

This is a huge jump from its original pricing which was $35 a month when the service was first launched back in 2017. Just two years later, the figure had risen to $50. The last increase was seen in March of 2023 when the company charged $72.99.

While the streaming service has hiked up the price several times, it does so in the company of other content-related providers who have also either raised prices, cracked down on password sharing, or offered new service tiers.

In the X post, the company carried on by saying: “We hope YouTube TV continues to be your go-to TV service, but if you need to pause or cancel, family managers can do so…”

The third and final post about the changes details how the decision wasn’t taken lightly as it states “we realize this impacts our members.

“With many exciting shows and live events coming up in 2025, we remain committed to bringing you the best of TV, all in one place. Thank you for being a loyal member. (3/3)”

As expected, and like with many similar announcements, the news didn’t go down well on social media as people replied asking where they could cancel.

Featured Image: AI-generated via Ideogram

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Microsoft has reintroduced its artificial intelligence-powered Recall feature to beta testers, or Windows Insider users. Originally planned to be launched earlier this year, Recall was lambasted by cybersecurity experts and online communities due to major security concerns.

Recall a CoPilot+ PC exclusive – for now – and leverage the particular hardware of these devices to capture everything you do. It then stores this locally on the PC, which can be searched to “recall” something you’ve forgotten.

An issue with this was that it was very easy for Recall to capture sensitive information. Passwords, credit card numbers, and bank details were all being stored in an easily accessible database.

Cybersecurity experts like Kevin Beaumont found that rather than storing the information in a secure fashion, or even with basic encryption, it was available in a database format. This could then be extrapolated with basic database software.

The second round of Recall appears to have improved its security but is still storing sensitive information. In a new report from Tom’s Hardware, they found that Recall was storing and capturing credit card information in some tests.

Using mock-up web pages, Recall stored everything down to the social security number. On more recognizable checkout sections, it managed to sensor that information by simply not capturing it.

Microsoft ups Recall’s security – but is it enough?

Microsoft’s second stab at Recall also appears to have upped the security. Databases seem to have some basic encryption, but the company still makes it a little too easy for potential hackers to get in.

If your Windows pin is discovered, there’s still a chance someone can access Recall through the official app. If someone gains remote access to your PC, the folder could potentially also be extracted.

While it is still in a preview state, a lot of users across social media are already showing multiple methods of how to disable it on systems. Microsoft is apparently adamant about getting this feature adopted by more users, with some finding that it’s being activated on a fresh install, including enterprise versions of Windows.

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A major outage occurred on Wednesday (December 11) which caused Meta apps and platforms to be unreachable.

Instagram, Facebook, WhatsApp, Messenger, and Threads were all found to be unusable as the systems struggled to carry out the normal tasks of sending messages, logging in and posting content.

The issue began around 8AM EST time and was greatly reported throughout the UK, but is thought to have affected others worldwide too. The US Downdetector site saw a spike at 1PM EST with just under 110,000 people reporting an issue had happened.

Downdetector shares real-time problem and outage monitoring, with people in Dallas, Houston, Atlanta, Chicago, New York, and Los Angeles reporting the issue in high numbers.

The outage was also reported in other countries around the world, including Canada.

What caused the Meta outage affecting its platforms?

As the difficulties swept through numerous accounts, Meta took to X to share an update: “We’re aware that a technical issue is impacting some users’ ability to access our apps. We’re working to get things back to normal as quickly as possible and apologize for any inconvenience.”

We’re aware that a technical issue is impacting some users’ ability to access our apps. We’re working to get things back to normal as quickly as possible and apologize for any inconvenience.

— Meta (@Meta) December 11, 2024

After the first message was posted by the team at 1:48PM EST, it wasn’t until 5:26PM EST when Meta said “Thanks for bearing with us! We’re 99% of the way there – just doing some last checks. We apologize to those who’ve been affected by the outage.”

The WhatsApp and Instagram accounts on X posted similar messages, with the quick messaging app declaring that they were back up and running despite its responses being filled with people still seeing errors like being unable to use their account.

We’re aware of some issues accessing WhatsApp. We’re actively working on a solution and starting to see a return to normal for most people. We expect things to be back to normal shortly.

— WhatsApp (@WhatsApp) December 11, 2024

Although Meta were very much aware of the ‘technical issue,’ the company hasn’t issued a more detailed response about how the outage was caused.

It’s not yet known how the error occurred, but the failure impacted many of Meta’s services.

It’s not the first time the company has faced issues like this either, as it suffered an outage in March.

Just a few years ago, in 2021, the technology giant experienced a widespread service outage that lasted for nearly six hours.

Featured Image: AI-generated via Ideogram

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Australia’s federal government has introduced a new measure to incentivize big tech companies to engage with news publishers, unveiling the “News Bargaining Incentive.”

The Australian Tax Office has introduced the levy targeting digital platforms. Companies that establish or renew agreements to pay news publishers for their content can offset the levy. However, platforms that choose not to negotiate with publishers will still be required to pay the levy, regardless of whether they host news content.

The decision follows Australia’s 2021 law which forces tech giants like Meta and Google to compensate publishers for news hosted on their platforms. Earlier this year, Meta, the parent company of Facebook and Instagram, announced it would not renew its payment agreements with Australian news organizations, setting up a standoff with lawmakers.

What is the News Bargaining Incentive?

Under the new rules, announced on Thursday (Dec. 12), companies with annual revenues exceeding A$250 million ($160 million) must enter into commercial deals with media organizations or face increased taxation. This policy aims to reinforce compliance or risk being hit with higher taxes.

Today my colleague @MRowlandMP and I announced the Government's News Bargaining Incentive.

Put simply, if digital platforms continue to support Australian journalism through commercial deals, they can access a generous reduction in their liability. #auspol

— Stephen Jones MP (@StephenJonesMP) December 12, 2024

In a statement, Assistant Treasurer Stephen Jones said: “The Government wants Australians to continue to have access to quality news content on digital platforms.

“This approach strengthens the existing code by addressing loopholes that could see platforms circumvent their responsibility to pay.”

Communications Minister Michelle Rowland added: “Large digital platforms have an important role to play in providing access to news for all Australians, and contributing to the sustainability of public interest journalism.”

A Meta spokesperson accused the government of “charging one industry to subsidise another.”

The previous News Media Bargaining Code allowed news organizations to strike commercial deals with tech giants like Facebook and Google, requiring these companies to pour millions into supporting local digital content.

Leveling the playing field with tech firms

The goal was to level the playing field between publishers and tech platforms, addressing what the government called a “power imbalance” and helping traditional media recover from the revenue hit caused by the shift to digital platforms.

But as ReadWrite reported, those agreements were nearing their expiration, and Meta made it clear it wouldn’t renew them. That decision left Australian publishers staring at a hefty A$200 million revenue loss.

Instead of continuing the partnerships, Meta announced it would phase out the dedicated news tab on Facebook in Australia—a feature that highlighted news articles—and redirect the funds to other areas.

However, the announcement sparked a sharp reaction from Prime Minister Anthony Albanese’s government, calling Meta’s decision “a fundamental dereliction” of its “responsibility to its Australian users.”

The government will consult stakeholders on the final design of the scheme and a public consultation paper is expected to be released in early 2025.

ReadWrite has reached out to Meta for comment.

Featured image: Canva

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President-elect Donald Trump has chosen Andrew Ferguson as the next chair of the Federal Trade Commission (FTC), and the new leader hopes to fight alleged attempts to censor conservative views online.

Trump claims Ferguson, a Republican commissioner President Biden appointed in April, has a history of resisting “Big Tech censorship” and supporting free speech.

Ferguson himself maintains that he’ll end a Big Tech “vendetta” against competition and free speech, and that the US is both an industry leader and a haven for innovators.

Thank you President Trump. Under your leadership, American businesses will become stronger and more competitive, and will better serve workers and consumers, than ever before. I’m honored that you’ve chosen me to be FTC Chairman in your mission to make our country great again.… pic.twitter.com/GxmYWfjpqm

— Andrew Ferguson (@AFergusonFTC) December 11, 2024

In Ferguson’s place, antitrust law firm partner Mark Meador will become an FTC commissioner.

Trump recently picked Brendan Carr to lead the Federal Communications Commission (FCC) with a similar agenda. The incoming President wants both historically independent agencies to more directly serve his policies, including the anti-censorship push. Trump and other conservatives have asserted that Google, Meta, and other major tech companies are censoring right-wing ideas by banning users, deleting posts, or supposedly prioritizing liberal content.

The companies have long rejected these claims. Instead, they’ve said they’re combatting hate speech and misinformation that potentially leads to real-world harm, such as threats against minorities or false election material. The main exception is X, which under Elon Musk has lifted some content restrictions. Musk is pro-Trump and will co-lead an advisory “Department of Government Efficiency” under the second Trump administration.

What will Trump’s FTC pick do with Big Tech regulation?

In addition to loosening policies around online speech, Ferguson is expected to take a deregulatory approach that contrasts sharply with the FTC under current chair Lina Khan.

Khan had become an outspoken opponent of alleged Big Tech anti-competitive abuses even before Biden nominated her, and mostly acted on that during her tenure. She and the FTC cracked down both on major companies like Amazon as well as practices widely seen as anti-consumer, such as hard-to-cancel subscriptions. As a parting shot, the Commission is investigating Microsoft’s cloud business for possible antitrust problems.

Ferguson won’t necessarily refuse to regulate large tech companies beyond speech. However, he has made clear that he won’t pursue those companies as aggressively as Khan. He may be less likely to oppose mergers or govern specific behaviors.

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Google has unveiled plans to collaborate with partners to develop gigawatts of renewable energy, battery storage, and grid upgrades to support its AI data centers. On Tuesday (Dec. 10), the tech giant announced a strategic partnership with Intersect Power and TPG Rise Climate to “synchronize new clean power generation with data center growth in a novel way,” using carbon-free power.

As reported by TechCrunch, the initiative involves a $20 billion investment in renewable energy projects, with Intersect Power already financing the first development. The agreement also includes an $800 million equity investment in Intersect Power, led by TPG, with participation from CAI, Google, and Greenbelt Capital Partners.

TPG’s executive chairman Jim Coulter said: “The convergence of two megatrends — decarbonization and digitization — is creating unique opportunities for innovative partnerships.”

Intersect Power CEO Sheldon Kimber added: “We can and are developing innovative solutions to rapidly expand clean power capacity at scale while reducing the strain on the grid.”

How much energy will AI data centers use?

Research from Gartner suggests that by 2027, 40% of existing AI data centers could face operational challenges due to power limitations, causing tech firms to secure alternative energy sources. While the International Data Corporation (IDC) predicts that AI data center energy use will grow by 44.7% annually, reaching 146.2 Terawatt hours (TWh) by 2027, as AI workloads take up an increasing share of total data center electricity.

Previously, ReadWrite reported that in October, Google signed the world’s first corporate agreement to purchase nuclear energy from small modular reactors. Just last week, Meta expressed similar intentions.

The Google deal to acquire small nuclear reactors to power data centers increases the odds that we will see AI models scale through at least 3 more generations/orders of magnitude (post GPT-5) to 2030.

According to Epoch, power was the binding constraint. https://t.co/FQtUsE0L9d pic.twitter.com/lChspwoZjC

— Ethan Mollick (@emollick) October 15, 2024

In addition, Morgan Stanley’s recent findings estimate that data centers could generate 2.5 billion tonnes of greenhouse gas emissions globally by 2030, a figure that could be three times lower without the rise of generative AI. Consequently, the rapid expansion of generative AI has placed significant strain on the U.S. power grid.

However, Amanda Peterson Corio, Google’s global head of data center energy, told Bloomberg that the company is committed to covering 100% of the costs required for grid upgrades associated with these projects because of AI data centers’ increased energy usage.

The initial phase of the first co-located clean energy project is slated to begin operations in 2026, with full completion expected by 2027.

Featured image: Ideogram

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OpenAI’s Sam Altman has shared hope that Elon Musk wouldn’t use his political clout to hurt his competitors.

It’s the latest in the bitter and ongoing feud between the two former partners, with Musk having just filed a preliminary injunction against the company to stop it from becoming a for-profit business.

The injunction aims to prevent the company behind ChatGPT from changing its structure and transferring assets.

After the news of the filing, Altman was present at the New York Times DealBook Summit at the Lincoln Center on December 4 where he was reported as saying: “It would be profoundly un-American to use political power to hurt your competitors and advantage your own businesses.

“I don’t think people would tolerate that. I don’t think Elon would do it.”

While the duo have been engaged in a back-and-forth for some time, with the latest preliminary injunction being the fourth legal action taken, Altman dismissed concerns that his rival might use his political influence to undercut competitors.

Altman says he believes Elon will do the right thing

He said: “I believe that – pretty strongly – I mean, it may turn out to be wrong, but I believe pretty strongly that Elon will do the right thing…”

Sam Altman said he is not worried about Elon Musk — his former partner in founding OpenAI — and President-elect Trump hurting his business. Follow our live coverage from the DealBook Summit here: https://t.co/uTsyyH00xC pic.twitter.com/87Fjsog8Jd

— The New York Times (@nytimes) December 4, 2024

The Tesla CEO appears to have become a major part of President-elect Trump’s campaign party. He has emerged as a top ally and was recently appointed to co-lead the new Department of Government Efficiency.

He was even spotted in the celebratory photograph after Trump was declared as the future president for the second time – with this being mainly filled with family members.

When asked at the event about Musk’s lawsuit, Bloomberg reports Altman described it as being “tremendously sad.” He said: “I grew up with Elon as a mega hero.”

Musk and OpenAI have been involved in a lawsuit since March 2024 but this was then dropped in July. However, Tesla’s CEO has reopened the move to bring about an injunction against more entities.

This includes Sam Altman, Greg Brockman, ex-board member Reid Hoffman, the Microsoft Vice President for Technology & Research Partnerships and Operations Dee Templeton, as well as Microsoft itself.

Featured Image: AI-generated via Ideogram

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Nvidia’s shares slumped by around 2.2% in pre-market trading on Monday after China opened a probe into alleged violations of the country’s anti-monopoly rules. 

It was announced that Beijing’s market regulation office had commenced an investigation into the market-leading advanced chip manufacturer over its acquisition of Mellanox in 2020. 

China previously approved this deal on the basis that it would not lead to discriminatory treatment toward Chinese companies.

The development comes amid rising trade tensions between the United States and China, with tit-for-tat moves over the last week. President Biden’s administration approved another round of restrictions to stifle China’s access to crucial AI components and in reciprocation, it banned the export of gallium, germanium, and antimony to the U.S.

In a statement quoted by CNBC, a spokesperson explained the decision to investigate the U.S. chipmaker.

“In recent days, due to Nvidia’s suspected violation of China’s anti-monopoly law and the State Administration for Market Regulation’s restrictive conditions around Nvidia’s acquisition of Mellanox shares … the State Administration for Market Regulation is opening a probe into Nvidia in accordance with law.”

China's $NVDA anti-trust probe is a result of the chipmaker's potential breach of commitments made when it acquired Israel-based Mellanox Technologies to solidify Nvidia's dominance in data center related, high-speed network interconnect equipment. It shows that China can dig…

— Brian Tycangco 鄭彥渊 (@BrianTycangco) December 9, 2024

China’s precedent for anti-monopoly action against a foreign firm

In a further return salvo against America, four of China’s top industry organizations issued a rare unified message in the name of protectionism, warning U.S. chips were “no longer safe” and to buy from local sources instead.

Nvidia is thought to dominate the Chinese market with a share of around 90%, before these curb measures, while China represents around 17% of Nvidia’s revenues in the year up to the end of January. This has fallen from 26% in two years. 

Huawei is emerging as a key competitor for Nvidia in China, with a growing domestic appeal. 

Reuters reported the last foreign company to fall foul of a similar anti-monopoly sanction was Qualcomm, in a 2013 investigation. 

Its local subsidiary firm was found to have overcharged and abused its market position, resulting in the payment of a $975 million penalty, the largest of its kind to be enforced by China at the time.

Image credit: Via Midjourney

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China has begun an investigation of Nvidia over alleged antitrust violations in what’s been interpreted as retaliation for expanded US restrictions on chips.

The Chinese State Administration for Market Regulation (SAMR) didn’t say just how Nvidia violated the country’s competition laws. However, it did allege that Nvidia broke promises made to China when buying networking giant Mellanox in 2020.

We’ve asked Nvidia for comment and will let you know if we hear back.

China’s possible retaliation against US chip policies

The probe comes less than a week after the US imposed new restrictions on China’s access to AI-related chips. The move barred China from buying fast memory from both US-based companies like Micron as well as foreign firms like Samsung and SK Hynix.  The Commerce Department also put more limits on manufacturing tech, although it made sure US partners like Japan still had access.

At the time, China accused the US of abusing “export control measures” that “hindered” trade. The nation said it would protect its interests, but didn’t elaborate on its response.

If this is a retaliatory measure, it doesn’t come as a surprise. The US and China have been embroiled in a trade battle for years, particularly when officials from the States and other countries accused Huawei of enabling Chinese government surveillance of foreign networks. China has long denied the accusations, but Huawei is banned from both selling in the US and from using many American components. In May, the US pulled Intel and Qualcomm licenses that let them export certain products to Huawei.

The US measures have had only a limited impact in some cases. Huawei’s smartphone business has rebounded in China, with phones like the Mate 60 narrowing the gap with the US and South Korea while using locally-made chips. There are concerns the country is using workarounds to access and replicate US tech despite restrictions. In that light, China’s move against Nvidia is more symbolic than a practical response to lasting damage.

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Apple is facing a lawsuit for reportedly failing to limit child sexual abuse material on its iCloud platform. According to The New York Times, the plaintiffs, who are alleged victims of abuse, are seeking more than $1.2 billion in damages, claiming that Apple abandoned a 2021 detection system intended to identify harmful content.

Filed on Saturday, the lawsuit was brought by a 27-year-old woman who argues that Apple’s inaction allowed images of her abuse to be widely distributed. The New York Times reported that the plaintiff alleges her abuser uploaded the images to Apple’s iCloud service. She also stated that both she and her mother frequently received notifications from law enforcement whenever individuals were charged with possessing these illicit images.

She said: “It was hard to believe there were so many out there. They were not stopping.”

Victims demand over $1.2 billion in damages from Apple over iCloud

The lawsuit aims to hold Apple accountable for its decision and seeks damages on behalf of up to 2,680 victims. Under U.S. law, child sexual abuse survivors are entitled to a minimum of $150,000 each, potentially pushing Apple’s total liability beyond $1.2 billion if the company is found responsible.

The case stems from Apple’s 2022 decision to abandon a planned system for scanning iCloud images for child sexual abuse material (CSAM). Introduced in 2021, the system would have used on-device hashing to identify such content.

However, Apple shelved the initiative amid widespread criticism over privacy implications and the potential for misuse. In September 2022, the company clarified its reasoning, citing the risk of unintended consequences.

The legal action also casts renewed scrutiny on Apple’s longstanding reputation for strong privacy protections. Its timing follows another recent lawsuit involving a nine-year-old victim in North Carolina, which alleges that Apple enabled strangers to distribute CSAM through iCloud.

For decades, Section 230 of the Communications Decency Act has insulated companies from liability for user-generated content. However, recent rulings by the U.S. Court of Appeals for the Ninth Circuit clarify that these protections only extend to content moderation decisions and are not absolute.

In the North Carolina case, Apple has moved to dismiss, arguing that Section 230 shields it from liability for material uploaded to iCloud by third parties. The company also contends that iCloud cannot be treated as a product—like a defective tire—and is therefore not subject to product liability claims.

Cited by the Times, Apple spokesman Fred Sainz said: “Child sexual abuse material is abhorrent and we are committed to fighting the ways predators put children at risk. We are urgently and actively innovating to combat these crimes without compromising the security and privacy of all our users.”

Big Tech accountability under the spotlight

Apple isn’t the only major tech company facing scrutiny over how its platforms affect children. Earlier this year, ReadWrite reported that the CEOs of Meta, TikTok, Snap, Discord, and X appeared before a U.S. Senate hearing focused on addressing online child exploitation.

In July, the Senate passed the Stopping Harmful Image Exploitation and Limiting Distribution (SHIELD) Act, which criminalizes the distribution of private, sexually explicit, or nude images. Michael Salter, Professor of Criminology at the University of New South Wales, Australia, wrote on X: “In the absence of law reform in major jurisdictions like the USA or the EU, civil suits are one of the few ways to hold tech to account.”

Apple is being sued for not removing child sexual abuse material from iCloud although it has the tools to do so. In the absence of law reform in major jurisdictions like the USA or the EU, civil suits are one of the few ways to hold tech to account. https://t.co/ctt6FnT8uL

— Michael Salter (@mike_salter) December 9, 2024

ReadWrite has reached out to Apple for comment.

Featured image: Ideogram

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Google’s CEO, Sundar Pichai, has predicted the future of artificial intelligence. Speaking at The New York Times Dealbook event, Pichai said that AI development will begin to slow down.

“I think the progress is going to get harder when I look at [2025]. The low-hanging fruit is gone,” Pichai said during his talk.

Right now, most AI development houses will release a general model and then begin to work on a more specific version. For example, OpenAI, makers of ChatGPT, have ChatGPT 4. This has been spun to 4o, which in turn is split into “Mini” (a cheaper-to-run version) and is now being succeeded by o1.

Each new model comes with billions of instructions to work off, which Pichai believes won’t be the way forward. Going bigger in terms of ability is no longer the fight.

The next thing on Pichai’s radar is hitting “deeper breakthroughs”, which he doesn’t see as a wall, “So you can perceive it as there’s a wall, or there’s some small barriers.”

One of these barriers is the potential for AI-generated data to become the training data, which would poison the well. The internet is estimated to be 57% AI-generated in 2024, which isn’t good data to harvest.

AI is trained on billions of pieces of data, sourced from media, books, and the internet. As companies are beginning to run out of material, it is resulting in a plateauing effect as large language models like ChatGPT receive updates.

These large leaps between models seen from GPT 3.5 to 4 will stop becoming so common as fresh data available dries up.

To get around this, companies have made deals to get a direct source of new content. such OpenAI has partnered with publishers like Future. Google itself has made a $60 million deal to harvest Reddit data for training purposes.

AI industry facing plateau as training begins to slow down

AI and its industry are currently in a rat race to be the best. However, its major promises like artificial general intelligence (AGI), where a computer could theoretically mimic a human brain, are being downplayed by leaders in the industry.

As the next advertised major hurdle of AI, OpenAI CEO Sam Altman has been lowering expectations recently. While he predicts it’ll launch in 2025, at the same summit, Altman said, “My guess is we will hit AGI sooner than most people in the world think and it will matter much less.”

OpenAI has seen multiple leaders from the company begin to leave, as it pushes ahead with plans to become a for-profit company.

Pichai did hit back at Microsoft, one of the most important companies in the AI business at the moment. The tech giant is currently working on nuclear plants to power its data centers for AI but doesn’t actually have their own model for the public.

Instead, Microsoft has a 49% stake in OpenAI and uses various wrappers to present the ChatGPT-powered CoPilot in its software. Poking at Microsoft, Pichai said, “I would love to do a side-by-side comparison of Microsoft’s own models and our models any day, any time… They’re using someone else’s models.”

Featured image: New York Times, Google

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Microsoft is facing a class-action style lawsuit in the United Kingdom worth around $1.25 billion (£1b) over allegations the tech giant overcharged companies for its Windows Server software. 

The action was brought by regulation expert Dr. Maria Luisa Stasi, and delivered to the British Competition Appeal Tribunal on Tuesday (Dec. 3). 

It concerns customers of Amazon’s AWS, Google Cloud Platform, and Alibaba Cloud, with the claim they have been forced to pay higher prices to use Microsoft’s software compared to customers of its own Azure cloud offering. 

If Stasi’s case is upheld, many thousands of U.K. businesses could be in line for substantial compensation payouts, with over £1b sought.

The collective suit has been arranged on an “opt-out basis” meaning all customers and organizations involved are represented unless they express a request not to be.

It is funded by LCM Funding UK Limited, the British arm of the international dispute finance provider, Litigation Capital Management. With Dr. Stasi as the figurehead of the claim, she takes on the risk (costs) underwritten by LCM.

“It’s important if you have a company that is working closely with one of the major tech providers that they are able to deal on fair and reasonable terms”

Our CEO explains why it’s important for smaller UK #tech firms to be able to compete in #digital markets.@FT #AISummit pic.twitter.com/lR04A0ZxMz

— Competition & Markets Authority (@CMAgovUK) December 2, 2024

Uncertainty surrounds investigations into cloud computing market

In a statement, Stasi said: “This lawsuit aims to challenge Microsoft’s anti-competitive behavior, push them to reveal exactly how much businesses in the UK have been illegally penalized, and return the money to organizations that have been unfairly overcharged.”

This case is the latest in a growing trend of competition complaints, lodged in the United Kingdom and the European Union in recent years, with a particular focus on cloud computing. 

Other tech heavyweights such as Facebook and Google have been placed under the spotlight, facing action in other cases brought forward.

The U.K.’s Competition and Markets Authority continues to probe the cloud market in Britain, but it could be years before a legal outcome, and precedent, is set.

Cloud computing is now an essential facet of modern business with most reliant on Microsoft’s services, or those of an alternate provider who may sub-license software from the US tech multinational.

Image credit: Via Midjourney

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Over the weekend, Intel announced the retirement of its CEO Pat Gelsinger who has been in the role since February 2021.

While the company writes in a news release that the now-former CEO had a “distinguished 40-plus-year career and has stepped down from the board of directors,” a report suggests he wasn’t given the option to stay in the position.

Bloomberg reports that Gelsinger was “given the option to retire or be removed, and chose to announce the end of his career at Intel.” They write their sources are people who have asked not to be identified because the proceedings weren’t made public.

Two senior leaders, David Zinsner and Michelle (MJ) Johnston Holthaus, have been named as interim co-chief executive officers while Intel’s board of directors conducts a search for a new CEO.

The board has formed a search committee to try and find a permanent successor to Gelsinger.

Frank Yeary, the independent chair of the board, will become interim executive chair during the period of transition. In the news release, he says: “On behalf of the board, I want to thank Pat for his many years of service and dedication to Intel across a long career in technology leadership.

“Pat spent his formative years at Intel, then returned at a critical time for the company in 2021. As a leader, Pat helped launch and revitalize process manufacturing by investing in state-of-the-art semiconductor manufacturing, while working tirelessly to drive innovation throughout the company.”

When is Gelsinger retiring?

When Gelsinger came into the role of CEO, it was thought he would be the company’s guiding light in restoring its prominence in the semiconductor industry.

Since then, the company has struggled to gain traction in the market as its previous rival Nvidia dominates the field.

Yeary continued, “While we have made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much more work to do at the company and are committed to restoring investor confidence.”

In the company news release, Gelsinger bids farewell: “Leading Intel has been the honor of my lifetime – this group of people is among the best and the brightest in the business, and I’m honored to call each and every one a colleague.

“Today is, of course, bittersweet as this company has been my life for the bulk of my working career. I can look back with pride at all that we have accomplished together. It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics.

“I am forever grateful for the many colleagues around the world who I have worked with as part of the Intel family.”

Image Credit: Photo by Cody Glenn/Web Summit via Sportsfile

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Meta is reportedly planning a significant new project to construct a global fiber-optic subsea cable.

According to TechCrunch, the ambitious project, spanning over 40,000 kilometers, could involve an investment exceeding $10 billion. The report also highlighted that the cable network would steer clear of “areas of geopolitical tension” where subsea cables have previously been sabotaged, including the Red Sea, the South China Sea, Egypt, Marseilles, the Straits of Malacca, and Singapore.

In February, ReadWrite reported that FBI Christopher Director Wray warned countries like Russia were continuing reconnaissance on critical infrastructure like underwater cables. He stated, “Once access is established, a hacker can switch from information gathering to attack quickly and without notice.” It has been speculated that Meta may want to establish its undersea network for this reason.

Sources close to Meta have confirmed the project to the outlet but pointed out that it remains in its early stages. While plans have been outlined, no physical assets have been deployed, and the budget details were not disclosed.

Meta is expected to provide more public information about the initiative in early 2025, including confirmation of the cable’s plans, its intended route, capacity, and the rationale behind its development.

Why Is Meta ‘building an undersea cable network’?

Subsea cables, which are traditionally funded by telecom consortiums, are now increasingly owned by tech giants like Meta. Already a part-owner of 16 networks, including the 2Africa cable, Meta’s new project marks its first fully owned subsea cable, showcasing a shift in infrastructure investment and ownership dynamics. This would align Meta with Google’s approach, as the company privately owns several cable routes and has invested in 33 others.

Subsea cable expert Sunil Tagare initially revealed Meta’s plan to construct the “mother of all submarine cables,” named “W” for its shape, in October. He estimated the ambitious project could take 5 to 10 years to complete.

Last month, the Federal Communications Commission announced its plan to review submarine cable licensing for the first time in decades, citing concerns about national security and cable ownership. This could motivate Meta, the sole owner of a route designed to pass through secure corridors.

ReadWrite has reached out to Meta for comment.

Featured image: Ideogram

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Tech companies could be at risk of being fined 50 million Australian dollars ($33 million USD) if a new proposed law goes through. Australia’s Labor government wants to make it known that citizens should have the right to easily switch between services.

In a speech, Assistant Treasurer Stephen Jones said, “The dominant platforms can charge higher costs, reduce choice, and use sneaky tactics to lock consumers into using certain products. Innovation outside of the established players becomes almost impossible.”

If the law is signed into effect, it would allow regulators to investigate and stamp out anti-competitive practices. It functions similarly to the European Union’s Digital Market Act (DMA), which provides additional protections for consumers.

That law assigns the term “gatekeeper” to select companies. It doesn’t just affect major players like Apple and Microsoft, but also other parent companies of platforms like TikTok and Facebook.

How Australia is cracking down on Big Tech

Apple is currently under fire for breaking the DMA, as its App Store practices are incredibly restrictive to the user. The Cupertino company is now forced to allow those within the EU to be able to install their choice of third-party app store.

Australia’s goal is to have something in place like this, allowing its citizens to not be forced into a tech ecosystem. For example, the government could find issues with Google’s domination in the maps space on Android.

The Australian government has come down heavy on tech companies in recent months. Last week, it signed into law the world’s first under-16 social media ban. This has been met with pushback by companies like Meta, who risk losing a good portion of their audience to it.

It has also taken Elon Musk to task for X’s mismanagement of hate speech and is currently chasing AI regulation. The government has also said it’ll fine companies spreading misinformation.

Australia has already successfully sued Google based on how it handles set-up processes during the first time turning on an Android device.

Featured image: pmc.gov.au, Flickr

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