Taipei, Taiwan — Nvidia CEO Jensen Huang has sharply criticized U.S. restrictions on exporting advanced computing chips to China, calling the policy a “failure” that is hurting American businesses more than its intended targets.

Speaking at the annual Computex tech conference in Taipei, Huang didn’t mince words when describing the fallout from U.S. export controls. “The fundamental assumptions that led to the AI diffusion rule in the beginning have been proven to be fundamentally flawed,” Huang told reporters.

Nvidia’s Market Share in China Cut in Half

Huang pointed to the dramatic drop in Nvidia’s market share in China as a direct consequence of these restrictions. Once commanding 95% of the Chinese market for advanced chips, Nvidia now holds just 50%. The CEO said that rather than slowing China’s tech ambitions, U.S. policies have fueled a push for self-reliance, with Chinese companies ramping up investment in domestic semiconductor development.

U.S. Policy Shift Sparks Debate

The criticism comes just days after the Trump administration announced it would scrap some of the Biden-era rules that had imposed blanket bans on exports to China. While that move is expected to open the door for new AI deals with countries like Saudi Arabia—deals Nvidia is already eyeing—it also comes with tighter restrictions elsewhere.

Under the revised strategy, the U.S. will still restrict advanced technology exports to dozens of entities, most of them based in China. This includes new licensing rules for specific Nvidia chips and warnings to U.S. firms about using Chinese-made components from companies like Huawei.

Tech vs. National Security: A Growing Divide

Huang’s remarks tap into a broader debate in Washington: how to balance national security with economic competitiveness. Both the Trump and Biden administrations have cited military risks in justifying tech export controls. However, many in the business community argue these rules often end up isolating U.S. companies and encouraging global buyers to look elsewhere.

While former President Trump has championed aggressive trade measures, including sweeping tariffs, he has shown more flexibility with the tech industry—particularly as it played a key role in backing his reelection campaign.

During a recent Middle East tour, Trump touted the loosening of chip export restrictions as a win for American innovation, positioning companies like Nvidia to strike lucrative international deals.

Beijing Fires Back

The U.S. moves have not gone unnoticed in China. In response to the latest crackdown, Beijing accused Washington of violating the trade framework both sides had tentatively agreed upon during negotiations in Switzerland earlier this month.

Chinese officials argue that America’s shifting rules are undermining trust and further destabilizing global tech supply chains.

Bottom Line:

Jensen Huang’s blunt assessment underscores growing frustration in Silicon Valley over how U.S. chip policies are being handled. As global tech competition heats up, the battle over who controls the future of semiconductors is far from over—and American firms may be caught in the middle.

Source: BBC – Nvidia boss calls US chip policy a ‘failure’

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Meta’s Victory in Age Verification Battle

Meta CEO Mark Zuckerberg has long argued that app stores—not individual platforms—should be responsible for verifying users’ ages. Now, Utah has become the first state to implement this idea with a groundbreaking new law.

Last week, Utah lawmakers passed the App Store Accountability Act, requiring app stores to verify users’ ages and obtain parental consent before minors can download apps. This legislation, awaiting Governor Spencer Cox’s signature, is seen as a major win for Meta and other social media platforms that have faced intense scrutiny over child safety online.

At least eight other states have introduced similar bills, suggesting a possible nationwide shift in how users—both minors and adults—interact with app stores.

Tech Giants Push Back: Privacy and Legal Concerns Arise

While the bill aligns with Meta’s push for app store accountability, tech giants Apple and Google strongly oppose the legislation, citing privacy risks and First Amendment concerns.

• Apple: “All users, regardless of app usage, would have to hand over personally identifying information, which contradicts user privacy interests.”
• Google: “This law shifts the burden from platforms like Meta onto app stores without actually addressing online harms.”

Both companies propose shared responsibility between app stores and developers while maintaining user privacy. Google has even sent a veto request to Utah’s governor and provided alternative legislative text for consideration.

How the Law Works: A One-Stop Age Verification System

The law mandates app stores to classify users into four age categories:

• Child (under 13)
• Young Teenager (13-16)
• Older Teenager (16-18)
• Adult (18 and over)

Minors’ accounts must be linked to a parent’s account, requiring parental consent for app downloads and in-app purchases.

Meta, Snap, and X have praised the bill, calling it a “one-stop shop” for parental oversight. Utah Governor Cox has also voiced support, stating that the law provides “a more streamlined and privacy-conscious solution for families.”

Potential Issues: Privacy, Legal, and Practical Concerns

Despite its intended benefits, critics argue the law could lead to several complications:

1. Privacy Risks: Users, including adults, may need to submit government IDs or facial scans, increasing the risk of data breaches.
2. Legal Hurdles: The law could violate the First Amendment by forcing adults to share personal information to access online content.
3. Practical Challenges: Families sharing devices may struggle with age verification. Teens in complex family situations might face barriers to downloading educational or harmless apps.
4. State-Specific Limitations: How will app stores enforce the law in one state while users travel or use VPNs to bypass restrictions?

Aaron Mackey of the Electronic Frontier Foundation warns, “At a time when people are already concerned about data privacy, this law forces companies to collect even more information.”

What’s Next? The Future of Online Safety Regulation

If Governor Cox signs the bill into law, it will go into effect next year.

While the legislation is seen as a step toward protecting minors online, it also raises new questions about digital privacy and free speech. Jane Horvath, former Apple chief privacy officer, notes that app developers may now be legally required to recognize and act on underage users already on their platforms, potentially leading to mass account deletions.

Despite these concerns, many experts agree that action is needed. Kris Perry, of the Institute of Digital Media and Child Development, says lawmakers are “doing the best they can with the tools they have.”

As more states consider similar legislation, the battle between child safety and digital privacy is far from over.

Source

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Massive Demand Overwhelms Electronics Store

A Tokyo electronics store has issued a public apology after a surge of Chinese buyers created chaos in their attempt to purchase Nvidia’s latest GeForce RTX 50 graphics cards. The incident, which quickly went viral on Japanese social media, highlights the growing impact of the US-China tech war on global gamers and resellers.

Hundreds of Buyers Flood Akihabara

Last week, up to 400 people gathered at PC Koubou, a store in Akihabara—a district famous for gaming, anime, and electronics—hoping to buy the latest Nvidia graphics cards. However, due to overcrowding, obstruction of pavements, and even trespassing on private property, the store was forced to cancel the sale.

In a statement on Monday, PC Koubou formally apologized:

“We present our deepest apologies for the great commotion that has burdened and worried our customers, neighboring communities, and related parties.”

Why Are Chinese Buyers Rushing to Japan?

The rush for Nvidia’s latest GPUs is largely due to US export restrictions on advanced chips to China. While Nvidia has created a weaker, modified version for the Chinese market, Chinese gamers and resellers are eager to get the full-powered international version.

Key Differences Between Versions:

• The RTX 5090 (global) can process 3,352 trillion operations per second (TOPS).
• The RTX 5090D (China-only) is 29% weaker, performing at 2,375 TOPS.

Chaotic Scenes at PC Koubou

PC Koubou had planned a limited sale through a lottery system, offering:

• 10 units of RTX 5090
• 47 units of RTX 5080

However, the store underestimated demand, leading to crowds overflowing onto the streets. Online videos showed buyers squeezing onto a narrow pavement, spilling into the road, and even climbing fences.

One desperate buyer jumped over a fence into a nearby kindergarten, damaging a sign in the process. Staff attempts to restore order failed, and the store ultimately canceled the sale. Instead, they switched to a two-day online lottery system.

Nvidia’s History of China-Specific GPUs

This is not the first time Nvidia has adjusted its products to comply with US restrictions. In 2023, the company released the RTX 4090D for China, which was about 5% slower than the standard RTX 4090.

Sky-High Demand and Resale Prices

The demand for RTX 5090 cards is skyrocketing in China, with resellers driving prices far beyond retail:

• Official prices:
  • RTX 5090 – $1,999 in the US, $2,600 in Japan
  • RTX 5090D (China-only) – $2,270 in China
• Resale prices:
  • On Taobao (China’s top e-commerce platform), some sellers are listing the RTX 5090 for up to $5,700.

Gamers and Resellers Seek Alternative Markets

With restrictions in place, Chinese buyers are searching for ways to acquire the high-performance GPUs from overseas. On Chinese social media platform Xiaohongshu, users are actively discussing purchasing strategies:

• One user asked about the risks of buying in South Korea.
• Another, a student in Thailand, hoped to import RTX 5090s to fund his tuition.

Conclusion

The Nvidia GPU craze is a direct consequence of the US-China tech conflict, leaving Chinese gamers desperate for high-performance hardware. The chaos in Akihabara is just the latest sign of how restrictions on technology exports are reshaping global markets and driving prices to extreme levels.

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

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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.

Source

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Indian police have reached out to Starlink, the satellite internet company owned by Elon Musk, for information related to a major drug smuggling case. Authorities suspect smugglers used Starlink devices to navigate Indian waters undetected and transport methamphetamine worth an estimated $4.25 billion.

Smugglers Used Starlink to Bypass Legal Channels

The Indian Coast Guard recently seized a Myanmar vessel near the Andaman and Nicobar Islands, marking their largest-ever drug haul. Onboard, they discovered 6,000 kilograms (13,227 pounds) of methamphetamine and a Starlink device allegedly used for navigation.

Hargobinder S Dhaliwal, the police chief of the Andaman Islands, stated that the smugglers relied on Starlink’s portable internet kit to create a Wi-Fi hotspot, enabling them to operate phones and coordinate their journey from Myanmar. The device, described on Starlink’s website as a compact and portable kit, bypassed traditional communication channels, raising concerns among authorities.

Arrests and Investigations

Six Myanmar nationals have been arrested in connection with the case. Indian police have contacted Starlink, requesting detailed information about the device, including its buyer, purchase date, and usage history.

Investigators are also examining whether local or international syndicates were involved in transporting the drugs.

Starlink’s Regulatory Challenges in India

Starlink, which offers high-speed satellite broadband “almost anywhere on Earth,” has yet to receive authorization to operate in India or its territorial waters. Since 2021, the company has faced regulatory hurdles in the country and stiff competition from Indian billionaire Mukesh Ambani’s Reliance Jio.

Implications for Law Enforcement

This incident has heightened awareness about how advanced technologies like Starlink can be exploited for illegal activities. Authorities are now considering stricter oversight of satellite communication devices to prevent similar incidents in the future.

The case underscores the challenges law enforcement faces in combating drug trafficking as smugglers adopt sophisticated tools to evade detection.

Source

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Australia has enacted a world-first law prohibiting children under 16 from accessing social media, placing significant accountability on tech companies to tighten security. The law, passed by the Senate on the final sitting day of the year, requires companies to take “reasonable steps” to enforce the ban or face fines of up to AUD 50 million (USD 32 million).

This unprecedented move is a response to the growing concerns about social media’s impact on youth. While other nations have introduced similar restrictions, Australia is the first to hold companies accountable for violations. Platforms like Snapchat, TikTok, Facebook, Instagram, Reddit, and X are expected to fall under the ban, with the possibility of more being added.

Government and Public Reactions

Prime Minister Anthony Albanese highlighted the growing global concern over social media’s effects on young people, describing it as a platform that can amplify bullying, anxiety, scams, and online predation. “At 16, children are better equipped to recognize fakes and dangers,” Albanese told Parliament.

The bill received bipartisan support, with Liberal Sen. Maria Kovacic calling it a “pivotal moment” in checking the power of tech giants. “We’ve drawn a line in the sand,” she said.

However, the law faced strong opposition from smaller parties and independents. Greens Sen. Sarah Hanson-Young criticized the rushed process and warned that it could push vulnerable youth into isolation. “Social media should be made safer for everyone, not banned arbitrarily,” she argued.

A Rushed Legislative Process

The bill’s rapid progression has drawn criticism for insufficient consultation. Submissions to a Senate inquiry were open for only 24 hours, followed by a brief three-hour hearing. Despite receiving over 100 submissions, most contributors expressed concerns about the lack of thorough review.

The Senate committee recommended some amendments, including prohibiting the use of government-issued documents, like passports, for age verification.

Tech Companies’ Concerns

Tech companies raised objections, citing privacy risks and the challenges of enforcing the law. Snap Inc., the maker of Snapchat, suggested “device-level age verification” as the best solution. X, owned by Elon Musk, expressed concern about freedom of expression. Meta, which owns Facebook and Instagram, advocated for waiting on results from age verification trials expected next year.

Meta also criticized the exclusion of platforms like YouTube and online gaming from the ban, arguing this undermines the law’s intent.

Public Support and Next Steps

Despite criticisms, the law enjoys strong public backing. A recent YouGov poll showed 77% of Australians support the ban.

The government will now consult stakeholders to determine a start date. Once implemented, accounts belonging to users under 16 will be deactivated. While parents and children will not face penalties for violations, companies must demonstrate robust efforts to comply.

This landmark legislation signals a turning point in how nations address the complex relationship between social media and youth, setting a precedent for others to follow.

Source

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