Tech
Meta shelves fact-checking in policy reversal ahead of Trump administration
Social media company Meta Platforms (META.O) on Tuesday scrapped its U.S. fact-checking program and reduced curbs on discussions around contentious topics such as immigration and gender identity, bowing to criticism from conservatives as President-elect Donald Trump prepares to take office for a second time.
The move is Meta’s biggest overhaul of its approach to managing political content on its services in recent memory and comes as CEO Mark Zuckerberg has been signaling a desire to mend fences with the incoming administration.
The changes will affect Facebook, Instagram and Threads, three of the world’s biggest social media platforms with more than 3 billion users globally.
Last week, Meta elevated Republican policy executive Joel Kaplan as global affairs head and on Monday announced it had elected Dana White, CEO of Ultimate Fighting Championship and a close friend of Trump, to its board.
“We’ve reached a point where it’s just too many mistakes and too much censorship. It’s time to get back to our roots around free expression,” Zuckerberg said in a video.
He acknowledged the role of the recent U.S. elections in his thinking, saying they “feel like a cultural tipping point, towards once again prioritizing speech.”
When asked about the changes at a press conference, Trump welcomed them. “They have come a long way – Meta. The man (Zuckerberg) was very impressive,” he said.
Asked if he thought Zuckerberg was responding to his threats, which have included a pledge to imprison the CEO, Trump said “probably.”
In place of a formal fact-checking program to address dubious claims posted on Meta’s platforms, Zuckerberg instead plans to implement a system of “community notes” similar to that used on Elon Musk-owned social media platform X.
Meta also will stop proactively scanning for hate speech and other types of rule-breaking, reviewing such posts only in response to user reports, Zuckerberg said. It will focus its automated systems on removing “high-severity violations” like terrorism, child exploitation, scams and drugs.
The company will move teams overseeing the writing and review of content policies out of California to Texas and other U.S. locations, he added.
Meta has been working on the shift away from fact-checking for more than a year, a source familiar with the discussions told Reuters.
It has not shared relocation plans with employees, however, prompting confused posts on the app Blind, which provides a space for employees to share information anonymously.
Most of Meta’s U.S. content moderation is already performed outside California, another source told Reuters.
Kaplan, who appeared on the “Fox & Friends” program on Tuesday morning to address the changes, offered Meta employees only a summary of his public statements in a post on the company’s internal forum Workplace, which was seen by Reuters.
A Meta spokesperson declined to comment on planning for the changes or say which specific teams would be leaving California. The spokesperson also declined to cite examples of mistakes or bias on the part of fact-checkers.
CAUGHT BY SURPRISE
The demise of the fact-checking program, started in 2016, caught partner organizations by surprise.
“We’ve learned the news as everyone has today. It’s a hard hit for the fact-checking community and journalism. We’re assessing the situation,” AFP said in a statement provided to Reuters.
The head of the International Fact-Checking Network, Angie Drobnic Holan, challenged Zuckerberg’s characterization of its members as biased or censorious.
“Fact-checking journalism has never censored or removed posts; it’s added information and context to controversial claims, and it’s debunked hoax content and conspiracies,” she said in a statement.
Kristin Roberts, Gannett Media’s chief content officer, said “truth and facts serve everyone — not the right or the left — and that’s what we will continue to deliver.”
Other partners did not immediately respond to requests for comment, while Reuters declined to comment. Meta’s independent Oversight Board welcomed the move.
Zuckerberg in recent months has expressed regret over certain content moderation actions on topics including COVID-19. Meta also donated $1 million to Trump’s inaugural fund, in a departure from its past practice.
“This is a major step back for content moderation at a time when disinformation and harmful content are evolving faster than ever,” said Ross Burley, co-founder of the nonprofit Centre for Information Resilience.
“This move seems more about political appeasement than smart policy.”
For now, Meta is planning the changes only for the U.S. market, with no immediate plans to end its fact-checking program in places like the European Union which take a more active approach to regulation of tech companies, a spokesperson said.
Musk’s X is already under European Commission investigation over issues including the “Community Notes” system.
The Commission began its probe in December 2023, several months after X launched the feature. A Commission spokesperson said it had taken note of Meta’s announcement and was continuing to monitor the company’s compliance in the EU.
The EU’s Digital Services Act, which came into force in 2023, requires very large online platforms like X and Facebook to tackle illegal content and risks to public security.
Any firm found in breach faces a fine worth up to 6% of its global revenue.
Meta said it would start phasing in Community Notes in the U.S. over the next couple of months and improve the model over the year.
Tech
OpenAI, SoftBank each commit 19bn dollars to Stargate AI data center
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.
Tech
Taiwan’s HTC to sell part of XR unit to Google for 250mn dollars
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.
Tech
Microsoft’s LinkedIn sued for disclosing customer information to train AI models
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.
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