Tech
China accuses Washington of wanting ‘technological hegemony’
China’s government accused Washington on Tuesday of pursuing “technology hegemony” following news reports the United States might step up pressure on tech giant Huawei by blocking all access to American suppliers.
The possible move, reported by Bloomberg News, The Financial Times and The Wall Street Journal, would tighten restrictions imposed in 2019 that limit Huawei’s access to processor chips and other technology. The company, which makes network equipment and smartphones, was allowed to buy some less-advanced components.
Huawei Technologies Ltd., China’s first global tech brand, is at the centre of conflict between Washington and Beijing over technology and security. U.S. officials say Huawei is a security risk and might facilitate Chinese spying, an accusation the company denies.
“China is gravely concerned about the reports,” said a foreign ministry spokeswoman, Mao Ning. She accused Washington of “over-stretching the concept of national security and abusing state power” to suppress Chinese competitors.
“Such practices are contrary to the principles of the market economy” and are “blatant technological hegemony,” Mao said.
Mao said Beijing would “defend the legitimate rights” of its companies but gave no indication of how the government might respond. Beijing has made similar declarations after past U.S. actions against its companies but often does nothing.
The ban on sales of advanced U.S. processor chips and music, maps and other services from Alphabet Inc.’s Google unit crippled Huawei’s smartphone business. The company sold its low-end Honor smartphone brand to revive sales by separating it from the sanctions on its corporate parent.
The Commerce Department agreed to grant export licenses to U.S. companies to allow them to sell less-advanced chips and other technology to Huawei that was deemed not to be a security risk. That followed complaints suppliers would lose billions of dollars in annual sales.
The Biden administration is considering no longer granting such licenses, although no decision has been made, the news outlets reported, citing unidentified people familiar with official deliberations.
Huawei scrambled to remove U.S. components from its network and other products and has launched new business lines serving factories, self-driving cars and other industrial customers. The company hopes those are less vulnerable to U.S. pressure.
Huawei says its business is starting to rebound.
“In 2020, we successfully pulled ourselves out of crisis mode,” Eric Xu, one of three Huawei executives who take turns as chairman, said in a December letter to employees. “U.S. restrictions are now our new normal, and we’re back to business as usual.”
Last year’s revenue was forecast to be little-changed from 2021 at 636.9 billion yuan ($91.6 billion), Xu said.
OpenAI and Japanese conglomerate SoftBank (9984.T) will each commit $19 billion to fund Stargate, a joint venture to develop data centers for artificial intelligence in the U.S., the Information reported on Wednesday.
The ChatGPT maker will hold a 40% interest in Stargate, and would act as an extension of OpenAI, the report said, citing OpenAI CEO Sam Altman speaking to colleagues. His comments imply SoftBank would also have a 40% interest, the report added.
OpenAI and SoftBank did not immediately respond to Reuters’ requests for comment.
On Tuesday, U.S. President Donald Trump announced that OpenAI, SoftBank Group and Oracle (ORCL.N) will unveil Stargate and invest $500 billion over the next four years to help the United States stay ahead of China and other rivals in the global AI race.
Stargate will initially deploy $100 billion and the rest of the funding is expected over the next four years. The project is being led by SoftBank and OpenAI.
Taiwan’s HTC (2498.TW) said on Thursday it will sell part of its unit for extended reality (XR) headsets and glasses to Google (GOOGL.O) for $250 million and transfer some of its employees to the U.S. company.
The transaction is expected to close in the first quarter of this year, HTC said.
The two companies will also explore further collaboration opportunities, HTC added.
Google said in a separate statement that the deal will accelerate the development of the Android XR platform and strengthen the ecosystem for headsets and glasses.
Lu Chia-te, HTC vice president and general counsel, told reporters the company had granted its intellectual property rights to Google as a non-exclusive license.
“Therefore, this is not a buyout nor an exclusive licence. In the future, HTC will still retain the ability to use, utilise, and even further develop it without any restrictions,” he said.
Microsoft’s (MSFT.O) LinkedIn has been sued by Premium customers who said the business-focused social media platform disclosed their private messages to third parties without permission to train generative artificial intelligence models.
According to a proposed class action filed on Tuesday night on behalf of millions of LinkedIn Premium customers, LinkedIn quietly introduced a privacy setting last August that let users enable or disable the sharing of their personal data.
Customers said LinkedIn then discreetly updated its privacy policy on Sept. 18 to say data could be used to train AI models, and in a “frequently asked questions” hyperlink said opting out “does not affect training that has already taken place.”
This attempt to “cover its tracks” suggests LinkedIn was fully aware it violated customers’ privacy and its promise to use personal data only to support and improve its platform, in order to minimize public scrutiny and legal fallout, the complaint said.
The lawsuit was filed in the San Jose, California, federal court on behalf of LinkedIn Premium customers who sent or received InMail messages, and whose private information was disclosed to third parties for AI training before Sept. 18.
It seeks unspecified damages for breach of contract and violations of California’s unfair competition law, and $1,000 per person for violations of the federal Stored Communications Act.
A lawyer for Prince Harry on Wednesday said the Duke of Sussex had reached a settlement with Rupert Murdoch’s news conglomerate.
LinkedIn said in a statement: “These are false claims with no merit.”
A lawyer for the plaintiffs had no immediate additional comment.
The lawsuit was filed several hours after U.S. President Donald Trump announced a joint venture among Microsoft-backed OpenAI, Oracle (ORCL.N) and SoftBank (9984.T), with a potential $500 billion of investment, to build AI infrastructure in the United States.
OpenAI, SoftBank each commit 19bn dollars to Stargate AI data center
Taiwan’s HTC to sell part of XR unit to Google for 250mn dollars
Microsoft’s LinkedIn sued for disclosing customer information to train AI models
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