US Lawmakers Push Biden to Extend TikTok Ban Deadline

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Two Democratic lawmakers on Monday urged Congress and President Joe Biden to extend the January 19 deadline for China-based ByteDance to divest TikTok’s U.S. assets or face a nationwide ban. With TikTok’s fate hanging in the balance, both lawmakers emphasized the social, cultural, and economic consequences of banning the app, which is used by 170 million Americans.

Legal and Legislative Challenges

The Supreme Court recently heard arguments regarding TikTok and ByteDance’s challenge to the law mandating the divestiture. Noel Francisco, a lawyer representing the companies, stated that completing a sale by the current deadline is “impossible.” He added that a ban would cause TikTok to go offline almost immediately, effectively shutting down the platform.

President Biden has the authority to extend the deadline by 90 days if he certifies that ByteDance is making meaningful progress toward divestiture. However, the likelihood of ByteDance meeting such standards within the timeframe remains low.

Legislative Proposals to Delay the Deadline

Senator Edward Markey announced his intention to introduce legislation to extend the deadline by an additional 270 days, citing the unique role TikTok plays in fostering social connections and economic opportunities. “A ban would dismantle a one-of-a-kind informational and cultural ecosystem, silencing millions in the process,” Markey said. He also warned that millions of Americans who rely on TikTok for their livelihood would face significant consequences.

Representative Ro Khanna echoed these concerns, urging both Biden and President-elect Donald Trump to delay the ban. “We cannot let 170 million Americans lose their free speech and economic opportunities overnight,” Khanna said.

Potential Impacts of the Ban

If the Supreme Court does not intervene by January 19, new downloads of TikTok on Apple and Google app stores will be prohibited. While existing users may retain access temporarily, the app’s functionality will degrade over time as U.S. companies will no longer be allowed to provide support. Ultimately, services will cease entirely.

President-elect Trump has also expressed interest in delaying the ban, requesting the court to postpone its implementation until after his inauguration on January 20. Trump argued that additional time is needed to seek a “political resolution” to the issue.

Next Steps

As the deadline approaches, the White House has not issued a statement on the lawmakers’ requests or its plans for TikTok. The situation remains uncertain, with the fate of the app potentially hinging on legislative action or further court rulings.

 

US Tightens Control Over AI Chip Exports, Targeting Global Flow and China

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HEADER: US Tightens Control Over AI Chip Exports, Targeting Global Flow and China

REWRITING TEXT:

The U.S. government announced on Monday new regulations aimed at tightening control over the global flow of artificial intelligence (AI) chips and technology, with a focus on limiting China’s access to these critical resources. The new rules, part of a broader U.S. effort to maintain its global leadership in AI, will cap the number of AI chips that can be exported to most countries while granting unlimited access to U.S. technology for its closest allies. This move, which intensifies the Biden administration’s previous restrictions, also ensures a continued blockade of China, Russia, Iran, and North Korea.

Strategic Implications and Global Impact

Commerce Secretary Gina Raimondo emphasized the importance of the U.S. maintaining its dominant position in AI, stating, “The U.S. leads AI now – both AI development and AI chip design, and it’s critical that we keep it that way.” The new regulations are the culmination of a four-year push to limit China’s access to advanced chips, which have military applications and could bolster the country’s capabilities in AI. These efforts also aim to close loopholes and introduce new safeguards to protect the U.S. AI industry’s competitive advantage.

The regulations set to take effect in 120 days from publication allow for specific country restrictions. Among them, the U.S. will divide the world into three categories: Tier 1 countries (Japan, South Korea, Britain, and the Netherlands), which will face minimal restrictions; countries like Singapore, Israel, and the UAE, which will face country caps; and nations like China, Russia, and Iran, which will be barred entirely from accessing the technology.

Effects on AI Chip Manufacturers

Advanced graphics processing units (GPUs), which are crucial for training AI models and are predominantly produced by U.S. companies like Nvidia and AMD, are among the chips subject to the new rules. Nvidia shares dropped by 5%, while AMD saw a 1% decline in early trading, as investors reacted to the anticipated regulatory changes. Major cloud service providers such as Microsoft, Google, and Amazon can still seek global authorizations to build data centers in countries that are unable to import sufficient chips due to the U.S. quotas. Once approved, these companies would be able to operate without export licenses for AI chips, provided they meet stringent security, reporting, and human rights requirements.

Industry Pushback

The rules have sparked significant criticism from key players in the tech industry. Nvidia, in particular, voiced concerns about the regulations, calling them “sweeping overreach.” The company argues that the restrictions would limit access to technology already available in consumer hardware, potentially hindering global competition and benefitting Chinese competitors. Oracle, a data center provider, echoed similar concerns, stating that the restrictions would primarily benefit China’s competitors in the AI and GPU market. Notably, the new rules do not apply to gaming chips, which remain outside the scope of the restrictions.

National Security and Long-Term Strategy

U.S. officials have justified the new rules by highlighting the potential risks associated with the rapid advancement of AI, which can be used for both beneficial and harmful purposes, including the development of advanced weapons, cyberattacks, and surveillance. National Security Adviser Jake Sullivan emphasized the need for the U.S. to stay ahead in the rapidly evolving AI landscape to safeguard both national security and economic interests.

As the Trump administration prepares to take office, questions remain about how the new regulations will be enforced. However, given the shared concern about China’s growing technological capabilities, many expect continuity in the U.S. approach to AI exports.

Arm Holdings Plans Major Price Increases, Considers Developing Own Chips

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Arm Holdings, a key supplier of chip designs to tech giants such as Apple, Qualcomm, and Microsoft, is planning to increase its chip royalty rates by as much as 300%. The company, owned 90% by SoftBank Group, has also discussed the possibility of designing its own chips to directly compete with its major customers. These moves are part of Arm’s long-term strategy to increase its revenue and expand beyond licensing intellectual property.

Strategic Shifts and Pricing Plans

Arm’s pricing strategy, referred to as the “Picasso” project, aims to secure a $1 billion increase in smartphone-related revenue over the next decade. Part of this initiative includes raising the royalty rates it charges for ready-made chip designs, especially those based on its latest architecture, Armv9. However, large customers like Apple and Qualcomm may avoid some of these hikes by designing their own chips using Arm’s technology, bypassing Arm’s pre-designed components.

Documents presented during a trial in 2024 revealed that Arm had considered a dramatic 300% price increase for its royalty rates, though this proposal was never fully implemented. Despite the uncertainty, Arm executives expressed confidence in the company’s ability to push forward with these higher prices, even amid the possibility of losing some customers to in-house chip designs.

Competition with Customers

Arm’s ambitions to compete directly with its clients, particularly in chip design, were highlighted in testimony from CEO Rene Haas. In a conversation with an executive, Haas hinted that Arm could eventually create its own chips to compete against customers like Qualcomm, calling them “hosed” if the company pursued this path. This bold strategy has raised concerns among Arm’s customers, with analysts suggesting that Arm’s move could unsettle the market.

Despite this, Haas downplayed his comments, attributing them to informal brainstorming sessions about potential future strategies. While Arm has not yet entered the chip-manufacturing business, the company is exploring possibilities for evolving its business model.

Industry Reactions and Future Plans

Arm’s plans for expansion beyond its traditional licensing business model could significantly alter the competitive landscape in the tech industry. The company’s proposal to work more closely with device makers and secure deals directly with manufacturers has already begun to impact relationships, as evidenced by a meeting between Arm’s CEO and Samsung in 2022. This conversation stirred concerns about Qualcomm’s ability to supply chips to Samsung in the future, leading to changes in their supply agreements.

In response to these developments, analysts have expressed concern over how Arm’s potential shift toward chip design could affect its customer base, especially as it risks upsetting relationships with major firms in the semiconductor industry.