TikTok Ban and Softbank's 'Super' AI Plans | Bloomberg Technology

TikTok and the U.S. Government

• TikTok and its Chinese parent company argue that the U.S. government disregarded a national security agreement and could have taken less restrictive actions to address concerns.
• The U.S. Justice Department responded that the legislation addresses many of the concerns raised.

Social Media Regulations

• New York has become the first state in the U.S. to impose restrictions on how social media platforms present content to minors.
• The new law requires platforms to obtain parental consent for using algorithmic feeds and notify underage users between midnight and 6 a.m.
• Critics argue that the law targets the wrong issue by focusing on algorithmic feeds, which provide a better experience for teenagers.
• Other states, such as California, Arkansas, and Ohio, have also introduced bills related to social media and content, but they have taken different approaches to avoid regulating speech and potential First Amendment issues.

Artificial Intelligence

• SoftBank's founder and CEO, Masayoshi Son, announced plans to create artificial super intelligence (ASI) that is three times more powerful than any human and believes ASI will be 10 times smarter than humans in the next 10 years.
• SoftBank's Japanese-listed shares have surged 60% this year, largely due to the performance of its stake in ARM, but activist investors are calling for share buybacks.
• The recent rally in AI stocks, including NVIDIA and SoftBank, has raised concerns about lofty valuations, but analysts believe the long-term case for AI remains bullish.
• OpenAI, a leading AI research lab, has made its first significant acquisition, signaling its growing ambitions in the field of artificial intelligence.

Huawei and ZEPTO

• Huawei's smartphone sales surged by 72% in the first five months of 2024, surpassing 900 million gadgets, posing a challenge to Apple in the Chinese market.
• ZEPTO, an e-commerce logistics company, is preparing to go public after doubling its valuation. It aims to handle $1 billion in goods annually and plans to expand its warehouses to 700 by 2025.

Cybersecurity

• Unauthorized access was detected on a cloud database hosted by Snowflake, impacting car dealerships and leading to an investigation by Lending Tree.
• CDK, a major provider of dealership management software, has been hit by a cyberattack, causing significant disruptions to dealerships across the US.
• The impact of this hack is being compared to the disruptions caused during the initial phase of the COVID-19 pandemic, as dealerships are unable to function effectively.
• Cybersecurity is one of the hottest sectors in tech, with a significant amount of activity in private markets due to the increasing frequency of global attacks, SEC disclosure requirements, and the scrutiny faced by Chief Security Officers.

Cryptocurrency Market

• Bitcoin has reached its lowest level since May, despite a record-breaking rally earlier this year.
• The lack of fresh market catalysts and reduced risk appetite may be contributing factors to the decline.
• Bitcoin ETFs have seen significant outflows of about $1 billion in the last seven trading days.
• Altcoins have performed worse than Bitcoin and Ethereum.
• The market is anticipating the approval and launch of Ethereum ETFs in the next two weeks.