The deal — confirmed internally by TikTok leadership — establishes a new U.S.-based entity that will be partly controlled by American investors including Oracle and Silver Lake, alongside Abu Dhabi–backed investment firm MGX. The restructuring is designed to address long-running national security concerns surrounding the app’s Chinese parent company, ByteDance.

As first reported by The Associated Press, the agreements are expected to formally close on January 22, creating a majority-American governance structure intended to safeguard U.S. user data while allowing the platform to continue operating domestically.

The move represents the culmination of years of political pressure and regulatory scrutiny that forced TikTok to reconsider how it manages technology, ownership and influence in one of its largest markets.

Strategic Control Shifts to U.S. Investors

Under the terms outlined in an internal memo distributed by TikTok CEO Shou Zi Chew, the new venture will divide ownership among multiple stakeholders in a structure designed to satisfy U.S. regulatory demands.

A consortium of investors — including Oracle, Silver Lake and MGX — will collectively control half of the company, with each firm holding a 15% stake. ByteDance itself will retain a minority position of 19.9%, while affiliates of existing ByteDance investors will hold an additional 30.1%.

The governance structure also changes significantly. The venture will operate under a seven-member board of directors with a majority of American members, a design meant to demonstrate operational independence from ByteDance’s headquarters.

In the memo to employees, Chew acknowledged the role staff played in sustaining the company through months of uncertainty, telling workers the agreements ensure TikTok can “continue to grow and thrive in the U.S. and around the world.”

Algorithm and Data Controls Become the Central Security Test

The restructuring directly addresses the most contentious issue in Washington’s debate over TikTok: the control of its recommendation algorithm and the handling of U.S. user data.

American officials have long argued that the platform’s algorithm — which determines what videos users see — could theoretically be influenced by Chinese authorities through ByteDance, raising concerns about information manipulation.

Under the new arrangement, TikTok’s U.S. user data will be stored locally in systems managed by Oracle. The platform’s recommendation system will also be retrained using American user data to reduce the possibility of outside influence over content feeds.

The new U.S. venture will additionally oversee domestic content moderation policies, creating another layer of operational separation between the American platform and its Chinese parent company.

Those provisions are intended to satisfy legislation passed by the U.S. Congress that required TikTok to divest from ByteDance or face a nationwide ban.

Political Pressure Forced the Structural Reset

The agreement follows a prolonged political and regulatory standoff in Washington that repeatedly threatened TikTok’s future in the United States.

After bipartisan majorities in Congress approved legislation requiring TikTok to separate from ByteDance, then-President Joe Biden signed the measure into law, establishing a deadline that would have forced the platform offline if ownership was not restructured.

The app briefly went dark in early 2025 before the newly inaugurated administration of Donald Trump intervened.

On his first day back in office, Trump issued an executive order allowing TikTok to continue operating while negotiations for a restructuring deal proceeded. Additional extensions followed throughout the year as officials attempted to broker a solution that would address national security concerns without eliminating a platform used by millions of Americans.

One potential arrangement collapsed earlier in the year after Beijing reportedly withdrew support amid rising trade tensions triggered by U.S. tariff announcements.

A Platform Too Large to Disappear

TikTok’s scale in the United States made the dispute politically and economically consequential.

The platform counts more than 170 million American users, and research by Pew Research Center indicates that roughly 43% of U.S. adults under 30 regularly get news from TikTok — a higher share than from platforms such as YouTube, Facebook and Instagram.

For advertisers, creators and media companies, the possibility of a shutdown threatened to disrupt one of the most influential digital distribution networks of the past decade.

Market reaction to the restructuring reflected the stakes for technology partners involved in the arrangement. Shares of Oracle rose about 5% in after-hours trading following news of the agreement.

Technology Sovereignty Debate Moves Into a New Phase

Even with the restructuring in place, the broader debate surrounding foreign-owned digital platforms in the United States is unlikely to end.

The TikTok arrangement represents one of the most significant attempts yet to separate a global technology platform’s operations along geopolitical lines — effectively creating a nationalized version of a globally integrated service.

If successful, the model could influence how other governments approach platforms whose ownership structures cross political and regulatory boundaries.

For TikTok, the agreement offers something it has lacked for years: a pathway to stability in the United States — provided the new structure satisfies both regulators and investors once the venture formally launches next year.

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When the Cloud Falters

AWS, Amazon’s powerful cloud computing arm, supports a vast share of the world’s websites and applications. When its systems faltered, the impact rippled across continents, disrupting productivity tools, entertainment platforms, and financial institutions. While service was restored within hours, experts warn such incidents highlight the vulnerability of a system increasingly dominated by a few large providers.

This latest glitch follows a series of digital meltdowns that have shown how interconnected — and exposed — the online world has become. As technology analyst Ritesh Kotak observed, “There’s a price to pay for the convenience we enjoy. It will happen again.”

The Day the World’s Screens Went Blue

The most dramatic example came on July 19, 2024, when cybersecurity firm CrowdStrike inadvertently triggered a global crisis with a faulty software update. More than 8.5 million computers crashed, blanketed by Microsoft’s infamous “blue screen of death.” Airlines canceled over 46,000 flights in a single day, hospitals postponed surgeries, and emergency call systems faltered across the United States. Even cinemas reverted to cash payments as digital payment systems failed.

Though the issue was quickly patched, the aftershocks lasted days. For many IT specialists, the CrowdStrike event underscored a grim reality: the more centralized digital systems become, the greater the risk of a catastrophic single point of failure.

Early Warnings from the 1990s

The internet’s fragility isn’t new. In 1997, a database misconfiguration at Network Solutions Inc., a key domain registrar, crashed every .com and .net site — roughly one million websites at the time. The incident crippled email services and interrupted business transactions, though its impact was minor compared with the potential chaos such a failure would cause today.

As digital infrastructure expanded into every sector, similar outages took on far more serious dimensions. In 2018, a malware attack in Alaska’s Matanuska-Susitna Borough knocked out public services for weeks, forcing government employees to dust off typewriters. “The cyberattack, God help us, just about stopped everything,” a local resident told the BBC at the time.

The Perils Beneath the Waves

Some of the internet’s most persistent threats are surprisingly physical. In 2011, an elderly woman in Georgia accidentally severed a major fiber-optic cable, cutting off internet access for all 2.9 million people in Armenia. She had been scavenging for copper when her shovel brought down the nation’s only connection to the global web.

Incidents like this reveal the fragility of systems that depend on a few thousand kilometers of cable. “There’s no way to ensure stability when you have a single connection line,” explained Vahan Hovsepyan of RIPE NCC, the regional internet registry for Europe and Central Asia.

And then there are the sharks. For decades, undersea internet cables — which carry 95% of the world’s data traffic — have been gnawed by curious marine life. Since the 1960s, reports have documented sharks and barracudas biting through cable insulation, sometimes grounding power lines and causing outages. Companies like Google now coat their cables in Kevlar-like materials to protect against these aquatic saboteurs.

When Governments Pull the Plug

Human intervention is another major cause of internet disruption. In 2022, Canada suffered a massive outage when Rogers Communications experienced a system failure, disabling phone and internet service for 11 million people. Emergency calls went unanswered, hospital appointments were canceled, and businesses were forced to halt digital payments.

But not all outages are accidental. Governments frequently shut down networks to control information or quell unrest. According to Access Now, a digital rights organization, more than 1,500 government-imposed internet shutdowns have occurred worldwide since 2016. These have included blackouts in India, Iran, Russia, Cameroon, and Venezuela.

In Bangladesh, a near-total internet shutdown in July 2024 accompanied violent clashes between students and police, leaving at least 150 people dead. “Internet shutdowns impede humanitarian delivery and block documentation of atrocities,” said Zach Rosson of Access Now. Many human rights groups now argue that access to the internet should be recognized as a basic human right, vital for communication, education, and economic opportunity.

Monopolies and the Modern Internet

For experts, the growing concentration of digital infrastructure in the hands of a few companies is itself a security risk. “The less diversity you have in any ecosystem, the more vulnerable you become,” said Casey Oppenheim, CEO of cybersecurity firm Disconnect. “There’s zero diversity at the top of the internet supply chain. A handful of companies control the backbone.”

CrowdStrike’s incident, he added, was a wake-up call about the dangers of digital monopolies. As governments revisit antitrust regulations, cybersecurity may become part of a broader discussion about economic concentration and national resilience.

The Y2K That Never Happened

One of history’s most famous digital scares — the Y2K bug — never truly materialized. As 1999 turned to 2000, many feared computers would interpret the year “00” as 1900, potentially crashing systems worldwide. Though minor glitches occurred, the apocalyptic predictions proved unfounded. The episode remains a symbol of both technological anxiety and the power of collective preparation.

Preparing for the Next Big One

While the 2025 AWS outage was contained quickly, the interconnected nature of modern life ensures that future disruptions will have even wider consequences. Whether caused by software errors, damaged cables, or deliberate shutdowns, the risks are real — and increasing.

Experts warn that building redundancy and decentralizing the internet are crucial to preventing a “digital blackout” of global scale. Until then, the world remains one coding error — or one shark bite — away from disconnection.

Source: BBC – Watch out for sharks: The bizarre history of internet outages

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Published Time 09-19-2025, 16:00 EDT

U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to hold a high-stakes call on Friday, with TikTok’s future in the United States and broader U.S.-China trade issues on the agenda.

The discussion is expected to finalize key terms of a deal that would allow the social media platform to continue operating in America while also signaling whether the two leaders might meet in person to negotiate a wider trade settlement. Analysts say the outcome could mark a turning point in the world’s most consequential bilateral relationship.

Another Call in a Strained Relationship

The scheduled conversation marks Trump’s second call with Xi since returning to the White House. In recent months, tensions have escalated after the U.S. imposed steep tariffs on Chinese goods, prompting retaliatory measures from Beijing.

“We’re very close to deals on all of it,” Trump told reporters Thursday, referencing both TikTok negotiations and broader trade issues. While he emphasized his “very good” relationship with Xi, Trump also suggested that China’s economic ties to Russia could complicate progress, particularly over Beijing’s purchase of Russian oil during the ongoing war in Ukraine.

The Chinese Embassy in Washington declined to confirm details of the planned call but stressed the importance of dialogue. “Heads-of-state diplomacy plays an irreplaceable role in providing strategic guidance for China-U.S. relations,” embassy spokesperson Liu Pengyu said in a statement.

Focus on the TikTok Agreement

At the center of the discussions is TikTok, owned by Chinese parent company ByteDance. U.S. officials have raised concerns that Chinese data laws could allow government access to American user information, while also citing national security risks tied to the app’s algorithm.

Treasury Secretary Scott Bessent said earlier this week that negotiators had reached a framework agreement, but final approval would rest with Trump and Xi. Trump, who has repeatedly extended deadlines for a TikTok restructuring, described the platform as having “tremendous value” that the U.S. effectively controls by requiring government approval.

Chinese officials announced that both sides had agreed on measures covering intellectual property rights and U.S. user data protections. According to Beijing, the deal includes entrusting a partner organization with oversight of American data security and content moderation.

Rep. Raja Krishnamoorthi, ranking Democrat on the House Select Committee on the Chinese Communist Party, cautioned that oversight must be watertight:

“TikTok’s data and algorithm must be truly in American hands to comply with the law,” he said.

Trade Tensions Beyond TikTok

TikTok is only one element in a complex and unresolved trade relationship. Since May, U.S. and Chinese negotiators have held multiple rounds of talks, pausing tariff escalations and easing some export controls. Yet many disagreements remain.

Ali Wyne, senior research and advocacy adviser on U.S.-China issues at the International Crisis Group, said both leaders are likely to frame the call in ways that project strength.

“Trump will likely seek to make it appear that the United States has the upper hand in trade negotiations,” Wyne explained. “Xi will likely seek to underscore China’s economic leverage and warn that continued progress will hinge on easing U.S. tariffs, sanctions, and export controls.”

Key unresolved issues include U.S. technology export restrictions, fentanyl-related chemical flows, and Chinese purchases of American agricultural products.

Impact on U.S. Farmers

The ongoing trade war has had a direct economic impact on American farmers, many of whom have seen exports to China collapse. From January through July this year, U.S. farm exports to China dropped by 53% compared with the same period in 2024, with sorghum sales down a staggering 97%.

Josh Gackle, chairman of the American Soybean Association, said producers remain hopeful but increasingly impatient.

“There’s still time. It’s encouraging that the two countries continue to talk,” Gackle noted. “I think there’s frustration growing at the farmer level that they haven’t been able to reach a deal yet.”

China is the world’s largest buyer of U.S. soybeans, and its pause in purchases has left American producers uncertain heading into the new harvest season.

Analysts See Potential for Summit

Experts believe Friday’s call could also set the stage for a broader summit between Trump and Xi later this year. Sun Yun, director of the China Program at the Washington-based Stimson Center, said both sides are motivated to reach a leadership-level agreement.

“Both sides have a strong desire for the summit to happen,” Sun said. “The details lie in the trade deal and what can be achieved for both sides.”

Whether a breakthrough occurs may depend on how the leaders balance domestic political considerations with the long-term need for stability in bilateral relations. For Trump, demonstrating control over TikTok and leverage in trade talks plays into his political brand. For Xi, maintaining China’s economic resilience while reducing tariff burdens remains a priority.

Looking Ahead

Friday’s call carries implications well beyond TikTok. It represents an opportunity for Washington and Beijing to stabilize relations after years of volatility while addressing digital security, trade imbalances, and agricultural disputes.

If successful, the discussions could pave the way for a leadership summit and gradual de-escalation of one of the world’s most critical rivalries. But without concrete progress, farmers, businesses, and tech companies on both sides of the Pacific may face continued uncertainty.

Source: AP News – Trump and Xi are set to discuss the TikTok deal and future of US-China relations

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On March 23, 23andMe, the pioneer in at-home genetic testing, shocked the public by filing for Chapter 11 bankruptcy, signaling a potential sale of the company. With 15 million customers relying on the service, many are now left wondering: What happens to my genetic data?

As privacy advocates raise alarms, and even two state attorneys general urge Americans to delete their data, 23andMe insists that its bankruptcy proceedings will not affect how it handles user information. But with the company’s future uncertain, experts believe there’s a huge incentive for corporations and researchers to get their hands on the treasure trove of genetic data 23andMe has accumulated.

Genetic data provides more than just information about your ancestry—it can reveal a lot about your health, food preferences, and even traits passed down through generations. Despite growing privacy concerns, this data holds incredible potential for industries ranging from medical research to advertising.

“Genetic data is permanent and unique,” says Katie Hasson, associate director for the Center for Genetics and Society. “It could reveal information about people who don’t even exist yet, many years from now.”

As 23andMe seeks a buyer, one thing is clear: corporations, advertisers, and medical researchers are eager to access the wealth of information embedded in these DNA profiles.

The value of genetic data goes far beyond simple ancestry reports. Take, for example, how genetics can influence food preferences. Researchers have discovered hundreds of genetic variants tied to specific tastes, such as liking or disliking certain foods. Gideon Nave, an associate professor at the University of Pennsylvania’s Wharton School, explains that genetic data could be more insightful than your shopping cart—especially since the items you buy may be for someone else.

“Genetic data can often tell us more about a person’s preferences than even their stated choices,” Nave says. “It’s a much deeper level of personalization for companies, especially when it comes to targeted advertising.”

Moreover, 23andMe’s health-related services offer subscribers insights into their genetic predispositions for certain diseases, like Type 2 diabetes or celiac disease. That’s where the real value lies for healthcare companies and researchers: using genetic data to better understand diseases, create personalized treatments, and improve diagnoses.

Healthcare professionals often rely on rules of thumb, tests, and symptom-checking to diagnose patients, but many conditions share similar symptoms. This is where combining genetic data with clinical information can make a difference, says Vasant Dhar, a professor of business and data science at NYU’s Stern School of Business.

“Doctors are following rules and doing tests, but a lot of diseases have similar symptoms,” Dhar explains. “Genetic data, combined with clinical information, could lead to more accurate diagnoses and better treatments.”

Healthcare research is poised to benefit greatly from genetic information, especially when it comes to developing tailored medical interventions. However, the potential for misuse also raises significant concerns.

While genetic data is highly valuable for research and healthcare, it also brings significant privacy risks. The Genetic Information Nondiscrimination Act (GINA) prohibits the use of genetic data in health insurance and employment decisions, but there are few regulations surrounding its use in other industries, like disability insurance.

Katie Hasson warns that genetic data could be exploited in ways that people aren’t even aware of. For example, genetic traits linked to health risks might be used for targeted advertising, potentially manipulating consumers based on information they don’t fully understand about themselves.

“There’s a darker side to this,” says Dhar. “With genetics, companies could know a lot more about you than you realize. That kind of personal information could be exploited in ways that aren’t fully transparent.”

23andMe’s potential sale wouldn’t be the first time a genetic testing company has been acquired. In 2020, private equity firm Blackstone acquired Ancestry.com. But there’s a key difference: genetic data doesn’t expire. Unlike traditional consumer data, genetic information can be useful for companies long into the future, even if it’s not immediately applied.

For instance, companies could use genetic data to shape future marketing strategies, develop new products, or even predict consumer behavior based on health traits.

However, as Nave points out, this also brings risks. “One of the dangers of genetic data is that it’s permanent. It doesn’t have an expiration date,” he says. “If companies ever use it for marketing, they could target consumers based on health traits they aren’t even aware of.”

As 23andMe enters this uncertain chapter, the future of its data—and its millions of users—remains in the balance. The company promises to continue selling its DNA test kits and offering subscriptions, but who will buy the company and what they will do with the data remains to be seen.

For now, the key takeaway is clear: genetic data is incredibly powerful, and it’s more than just a tool for tracing your family tree. It’s a valuable commodity with vast potential—and the companies that acquire it could hold your most personal information for years to come.

As the world of genetic data continues to evolve, privacy concerns are sure to rise. Whether consumers will have a say in how their information is used remains to be seen, but one thing is certain: the sale of 23andMe’s data will open up a whole new world of possibilities—and risks.

Source: CNN – 23andMe’s DNA data is going up for sale. Here’s why companies might want it

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Whistleblower Alleges Facebook’s Close Ties with Beijing

A former senior Facebook executive has alleged that the social media giant worked “hand in glove” with the Chinese government, considering ways to censor and control content in China.

Sarah Wynn-Williams, a former global public policy director at Facebook, claims that in exchange for market access, Facebook’s founder Mark Zuckerberg was open to hiding viral posts until they could be reviewed by Chinese authorities. These allegations are part of her new book and a whistleblower complaint she has filed with the U.S. Securities and Exchange Commission (SEC), reviewed by the BBC.

Facebook’s Alleged Cooperation with China

Wynn-Williams claims that during negotiations with the Chinese government in the mid-2010s:

• Facebook considered granting Chinese authorities future access to user data.
• Zuckerberg was obsessed with breaking into the Chinese market, referring to it as his “white whale.”
• Facebook developed a censorship tool to comply with China’s strict content control regulations.
• The company revealed software details to Chinese officials, allowing them to test Facebook’s censorship technology.

Wynn-Williams: “He was working hand in glove with the Chinese Communist Party, building a censorship tool… the opposite of the principles Facebook claims to uphold.”

Facebook’s parent company, Meta, responded that these claims were widely reported at the time and insisted that the company ultimately chose not to proceed with the plans.

Meta’s Defense and Response

Meta maintains that:

• Zuckerberg’s 2019 public comments stated, “We could never come to agreement on what it would take for us to operate there, and they never let us in.”
• Meta terminated Wynn-Williams in 2017 due to poor performance and toxic behavior.
• The allegations are an attempt to sell books, not genuine whistleblowing.
• Meta has launched legal action in the U.S. to stop the distribution of allegedly defamatory and false claims.

Targeting Vulnerable Teens?

Wynn-Williams also accuses Facebook of using its algorithms to target vulnerable teenagers for advertisers. She claims:

• Facebook’s system could identify when teens felt worthless or unhappy.
• The platform tracked deleted selfies, notifying beauty companies to target these users with ads.
• She pushed back on these practices but found resistance from executives who saw it as a profitable advertising strategy.

Wynn-Williams: “The business side thought this was exactly what we should be doing. Young people are a key advertising segment.”

Meta denies these allegations, stating:

• It has never used emotional states to target ads.
• It introduced Teen Accounts with protections.
• It gives parents more control over their teens’ social media use.

Wynn-Williams’ Exit and Legal Battle

Meta insists that Wynn-Williams was fired not just for poor performance, but also for making “misleading and unfounded harassment allegations.” However, she claims she was dismissed after reporting inappropriate comments from a senior executive, Joel Kaplan (Meta’s current global affairs chief).

Meta’s statement: “She has been paid by anti-Facebook activists and is not a whistleblower.”

A legal representative for Wynn-Williams countered: “Meta has made false and inconsistent statements about Sarah… The book speaks for itself.”

Why Speak Out Now?

Wynn-Williams argues that Meta holds immense influence over society and politics, and the public needs to understand its inner workings.

Wynn-Williams: “Tech and political leaders are merging forces. We need to ensure we get the future we deserve.”

With Meta denying the allegations and pursuing legal action, the debate over Facebook’s ethics, business practices, and role in global politics is far from over.

Source

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A federal judge issued a ruling early Saturday that blocks Elon Musk’s Department of Government Efficiency (DOGE) from accessing sensitive U.S. Treasury Department records containing personal data for millions of Americans. The records in question include crucial information such as Social Security numbers and bank account details.

Judge’s Ruling: Preliminary Injunction in Response to Lawsuit

U.S. District Judge Paul A. Engelmayer issued a preliminary injunction after 19 Democratic state attorneys general filed a lawsuit against President Donald Trump. The case, presented in New York federal court, alleges that the Trump administration unlawfully granted Musk’s team access to the Treasury’s central payment system. This system is responsible for distributing trillions of dollars annually, including tax refunds, Social Security benefits, and veterans’ benefits—all of which contain sensitive personal and financial data.

Judge Engelmayer, appointed by President Barack Obama, emphasized that anyone who accessed the data after January 20 must immediately destroy any copies of information downloaded from the Treasury’s systems. He scheduled a hearing for February 14.

DOGE’s Mission Under Scrutiny

Musk’s Department of Government Efficiency, or DOGE, was created to identify and eliminate perceived wasteful government spending. Its controversial access to Treasury records has sparked debate, with critics raising concerns about Musk’s growing influence and the potential misuse of personal data, while supporters argue that the initiative could streamline government finances and save taxpayers millions.

Musk has dismissed criticism of DOGE on his social media platform X, where he claims the program is saving taxpayer money. However, many state officials are concerned about the implications of allowing a private entity such as DOGE to access such sensitive information.

Lawsuit Alleges Security Risks and Legal Violations

The lawsuit, led by New York Attorney General Letitia James, argues that DOGE’s access to Treasury Department data creates significant security risks. It also suggests that the initiative could lead to an illegal freeze on federal funds, affecting critical programs like healthcare, childcare, and veterans’ benefits.

“This unelected group, led by the world’s richest man, is not authorized to have this information,” James said in a video message. “They explicitly sought this unauthorized access to illegally block payments that millions of Americans rely on.”

James, a vocal critic of Trump, emphasized that the president cannot unilaterally grant access to Americans’ private information nor stop federal payments approved by Congress.

States Join Forces Against DOGE

Alongside New York, the lawsuit includes attorneys general from 18 other states: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin.

The suit argues that DOGE’s access could disrupt payments already authorized by Congress and exceed the Treasury Department’s authority. It also claims that Musk’s team bypassed legal safeguards designed to protect personal and financial data, violating federal law and the Constitution’s separation of powers doctrine. The lawsuit also accuses Treasury Secretary Scott Bessent of altering department policy to allow DOGE’s access.

Concerns About Privacy and Potential Data Breach

Attorney General William Tong of Connecticut called DOGE’s access to Treasury records “the largest data breach in American history.” Tong raised concerns about the potential risks of allowing Musk’s private initiative to comb through confidential records and critical payment systems.

“This is an unlawfully constituted band of renegade tech bros,” Tong said, referring to Musk and his team. “What could go wrong?”

Treasury Department Defends Its Actions

In response to the concerns, the Treasury Department has stated that the review of its systems is focused on assessing their integrity, and no changes are being made. However, two sources familiar with the process revealed that Musk’s team initially began its review with the goal of suspending payments made by the U.S. Agency for International Development (USAID), a move both Musk and Trump have expressed interest in dismantling.

Additional Legal Action and Congressional Scrutiny

Democratic lawmakers are calling for further investigation into DOGE’s access to the Treasury’s payment systems. Meanwhile, labor unions and advocacy groups have also filed lawsuits to block the review over concerns about its legality.

On Thursday, a judge in Washington temporarily restricted two Treasury employees from accessing the payment system, limiting them to “read-only” privileges.

Conclusion

The ongoing legal battle between Elon Musk’s DOGE and state attorneys general highlights significant concerns over the privatization of sensitive government data and the potential risks to millions of Americans’ personal and financial information. As the case moves forward, both sides are preparing for an extended legal fight, with critical hearings scheduled for mid-February.

Source

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Britain’s security officials have demanded that Apple create a so-called “back door” to access the encrypted data stored on users‘ iCloud accounts worldwide, according to a report by The Washington Post on Friday. The request would allow the UK government to retrieve all content uploaded by Apple users to the cloud.

Apple’s Response and Potential Consequences

In response, Apple is reportedly considering halting its encrypted storage services in the UK, rather than compromising its security promises to users, the report suggests. The UK’s Home Secretary’s office issued a “technical capability notice” to Apple, officially ordering the company to comply with the request.

Government and Apple Reactions

Apple did not provide a comment outside of regular business hours when approached by Reuters. Additionally, the UK’s interior ministry has yet to respond to the Washington Post’s report.

Background on the Investigation

This move follows Britain’s earlier actions in January, when the government used its regulatory powers to launch an investigation into Apple and Google. The probe focuses on smartphone operating systems, app stores, and browsers, raising concerns about the influence of major tech companies in the UK market.

Source

The post UK Demands Apple Open Encrypted iCloud Accounts, Report Says appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

White House Concerns Over AI Distillation

Top White House advisers are raising alarms over China’s DeepSeek and its potential use of a controversial AI training method known as “distillation.“ This technique allows one AI system to learn from another, potentially giving DeepSeek an advantage by leveraging the advancements of U.S. rivals—without the massive costs and computing power investments.

Despite concerns, stopping this practice may prove challenging, according to Silicon Valley executives and investors.

DeepSeek’s Breakthrough Shakes Up the AI Industry

DeepSeek made headlines this month by unveiling an AI model that rivals top U.S. technologies, such as OpenAI’s ChatGPT, but at a significantly lower cost. Even more surprising, the China-based company released its model for free, sparking debate over how it achieved such rapid advancements.

Some experts suspect that DeepSeek may have used distillation to learn from U.S. models, allowing it to bypass the costly and time-consuming process of developing AI from scratch.

How AI Distillation Works

AI distillation involves training a newer model by having it interact with an older, more powerful AI system. The established model evaluates the quality of responses from the newer system, effectively transferring its knowledge.

This means that companies like DeepSeek could benefit from the extensive resources spent by U.S. firms—without directly accessing or copying proprietary data.

While AI distillation is widely used in the industry, it violates the terms of service of several major U.S. AI firms, including OpenAI.

OpenAI and U.S. Firms Investigating DeepSeek

A spokesperson for OpenAI confirmed that the company is aware of groups in China actively working to replicate U.S. AI models through distillation. OpenAI is now investigating whether DeepSeek improperly used this method to develop its latest model.

Industry Experts: Learning from Rivals is Common

Despite ethical and legal concerns, some industry leaders argue that learning from competitors is standard practice in AI development.

Naveen Rao, vice president of AI at San Francisco-based Databricks, compared AI distillation to automakers reverse-engineering each other’s engines to gain insights.

“To be completely fair, this happens in every industry. Competition is real, and when information is extractable, companies will try to use it to gain an advantage,” Rao said. “We all try to be good citizens, but we’re also competing at the same time.”

Why Stopping DeepSeek May Be Difficult

Blocking DeepSeek or similar companies from leveraging U.S. AI advancements is complicated for several reasons:

1. AI distillation doesn’t require direct access to U.S. systems – Instead of stealing data, the method allows models to learn indirectly, making enforcement tricky.
2. The practice is widely used in AI research – Even though some U.S. firms prohibit distillation in their terms of service, monitoring and proving violations can be difficult.
3. AI innovation moves at a rapid pace – By the time regulations catch up, new methods may emerge to bypass restrictions.

The Bigger Picture: Global AI Competition

The DeepSeek case highlights the increasingly competitive race for AI dominance between the U.S. and China. With open-source models and indirect learning techniques making AI more accessible, preventing knowledge transfer between global rivals is becoming a significant challenge for policymakers and tech companies alike.

For now, DeepSeek’s rapid rise is a reminder that in the world of AI, staying ahead means more than just innovation—it also means navigating the complex realities of global competition.

Source

The post Why Stopping China’s DeepSeek from Using U.S. AI is a Challenge appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

In a bold move, Perplexity AI has submitted a new proposal to TikTok’s parent company, ByteDance, offering a plan that would allow the U.S. government to own up to 50% of a newly-formed entity merging Perplexity with TikTok’s U.S. operations. This proposal, presented last week, revises a previous plan Perplexity submitted on January 18—just a day before the law banning TikTok in the U.S. took effect.

The Proposal: A Shift Toward U.S. Control

The latest plan aims to create a structure that would merge San Francisco-based Perplexity with TikTok’s U.S. business. It suggests that the U.S. government could own a significant stake in the new entity once it goes public, with an initial offering estimated at a minimum of $300 billion. However, the U.S. government’s shares would not carry voting rights, and it would not have a seat on the company’s board.

This proposal is a response to feedback from the Trump administration, according to an anonymous source familiar with the matter. Perplexity’s updated plan allows ByteDance to retain a stake in TikTok, while also meeting U.S. concerns about control over the platform’s operations.

ByteDance’s Role in the Deal

Under the proposal, ByteDance would not be required to sever all ties with TikTok, which would benefit its investors. However, the plan stipulates that ByteDance must allow “full U.S. board control.” This would provide U.S. officials with oversight, ensuring that the app’s operations comply with U.S. interests.

Notably, ByteDance would contribute TikTok’s U.S. business, excluding the proprietary algorithm that drives the app’s content recommendations. This move echoes a suggestion made by Steven Mnuchin, Treasury Secretary during Trump’s first term, who discussed the idea of diluting Chinese ownership to satisfy U.S. security concerns. Mnuchin had previously shown interest in investing in TikTok, emphasizing the need to disconnect the technology from China.

A Potential Solution to U.S. Security Concerns

This proposal is part of a broader discussion around TikTok’s ownership and national security. The U.S. government has raised alarms about the potential risks posed by ByteDance’s control over the app’s algorithm and the vast amount of data it collects from American users. While there’s been no concrete evidence that TikTok has shared data with Chinese authorities or allowed interference in its algorithm, the Biden administration has expressed ongoing concerns.

The Growing Interest in TikTok’s Future

As talks surrounding TikTok’s future intensify, several investors are showing strong interest in the platform. President Trump recently stated that a deal could materialize within 30 days. He mentioned receiving interest from “substantial people” and stressed that the U.S. would need to benefit from any deal made.

Trump also addressed rumors about Larry Ellison, CEO of Oracle, potentially leading a bid for TikTok’s global operations. While Trump confirmed that he had not discussed a deal with Ellison, he noted that many other parties were involved in negotiations.

TikTok’s Ban and Legal Challenges

The U.S. government had passed a bipartisan law in 2024 mandating TikTok’s ban unless it severed ties with ByteDance. Though the Supreme Court upheld the law, Trump issued an executive order to pause enforcement for 75 days, providing additional time for negotiations.

TikTok briefly shut down in the U.S. last week but resumed operations after Trump intervened. Notably, Trump had previously tried to ban TikTok during his first term, but he reversed his stance, crediting the platform for helping him connect with younger voters in the 2024 election.

Looking Ahead

As negotiations continue, the future of TikTok remains uncertain. With mounting concerns over national security and ongoing discussions about ownership restructuring, the platform’s fate could hinge on upcoming proposals like Perplexity AI’s. How ByteDance responds—and whether the U.S. government takes a more active role in overseeing the company—will be pivotal in determining TikTok’s future in the U.S.

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