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U.S. Adds Tencent and CATL to List of Chinese Firms Allegedly Aiding Beijing’s Military

The U.S. Department of Defense has added Chinese tech giant Tencent and battery maker CATL to its list of companies allegedly working with China’s military, a move that could further escalate tensions between the U.S. and China. The “Section 1260H” list, which designates companies that may pose national security risks to the U.S., now includes 134 firms, with Tencent and CATL being two of the most prominent additions.

Tencent, the parent company of the popular messaging app WeChat, and CATL, the world’s largest electric vehicle battery maker, both rejected the accusations. Tencent called the move a “mistake” and stated that its business would not be affected, hinting at possible legal actions. CATL similarly denied any military-related activities and stated that it was not involved in any defense operations.

While the addition to the list does not directly impose sanctions, it could tarnish the companies’ reputations and heighten scrutiny from U.S. businesses and government entities. Lawmakers have long been critical of Chinese companies’ alleged ties to the Chinese government and its military ambitions.

The Pentagon’s move also affects several other Chinese firms, including drone manufacturer Autel Robotics, shipping giant COSCO, and China’s Commercial Aircraft Corporation (COMAC). U.S. lawmakers, such as John Moolenaar, voiced support for the list, warning that these companies pose security risks.

This development comes as the U.S. continues to tighten restrictions on Chinese firms, with some lawmakers calling for further actions against companies like CATL, which has partnerships with U.S. companies like Ford. Ford plans to license CATL’s battery technology for a new plant in Michigan, raising concerns among some in Congress about the potential security implications.

China, through its foreign ministry, condemned the U.S. sanctions and urged the immediate removal of what it termed “illegal unilateral sanctions.” The U.S. is expected to face increasing pressure from both domestic and international stakeholders as tensions over these designations and broader geopolitical issues grow.

Las Vegas Cybertruck Explosion Linked to ChatGPT, Authorities Say

The driver of the Tesla Cybertruck that exploded outside the Trump International Hotel in Las Vegas on New Year’s Day allegedly used the AI chatbot ChatGPT to plan the attack, according to law enforcement officials. Authorities revealed on Tuesday that the suspect used the platform to help determine how much explosive material was required to trigger the blast.

The individual identified as Matthew Livelsberger, 37, an active-duty Army soldier from Colorado Springs, was found dead inside the vehicle. The FBI has stated that it appears to be a case of suicide, and that Livelsberger acted alone in the incident. No connection has been made between the Las Vegas explosion and another truck attack in New Orleans that killed more than a dozen people.

This incident marks the first known case in the U.S. where ChatGPT was used to plan and facilitate the creation of an explosive device, raising alarms about the potential misuse of AI technologies. Las Vegas Metropolitan Police Department Sheriff Kevin McMahill highlighted the significance of the case, noting, “Of particular note, we also have clear evidence in this case now that the suspect used ChatGPT artificial intelligence to help plan his attack.”

The explosion left seven individuals with minor injuries, but the use of ChatGPT in this context adds a new layer of concern regarding AI’s role in enabling harmful activities. While OpenAI, the company behind ChatGPT, has emphasized that the tool is designed to prevent harmful use, it acknowledged that the chatbot only provided publicly available information and included warnings against illegal actions in its responses.

The FBI’s investigation continues, with Livelsberger’s phone revealing a six-page manifesto that authorities are actively reviewing for additional clues about his motives and state of mind.

 

Tech Group Urges U.S. to Halt AI Chip Export Restrictions Amid Growing Concerns

A coalition of tech companies, including Amazon (AMZN.O), Microsoft (MSFT.O), and Meta (META.O), has urged the Biden administration to reconsider a pending rule that would restrict global access to AI chips. The rule, which could be finalized as soon as Friday, is viewed by the Information Technology Industry Council (ITI) as a threat to U.S. leadership in artificial intelligence.

The proposed rule, backed by the U.S. Commerce Department, aims to regulate AI chip exports to prevent adversaries, particularly China, from gaining access to advanced technologies that could enhance their military capabilities. While the restrictions are framed as a national security measure, industry leaders argue that they could hinder U.S. companies’ ability to compete globally and inadvertently benefit foreign competitors.

In a letter to U.S. Commerce Secretary Gina Raimondo, ITI CEO Jason Oxman expressed concerns about the rushed nature of the rule. Oxman warned that implementing such a consequential policy at the end of President Biden’s term could result in unforeseen consequences, damaging the U.S.’s competitive edge in the rapidly growing AI sector.

The group called for a more measured approach, recommending that any new regulations be introduced as a proposed rule rather than a final one. They stressed the importance of considering the broader geopolitical and economic impact, which could jeopardize the U.S.’s position in global AI development.

The anticipated rule has sparked strong opposition within the tech industry, with the Semiconductor Industry Association and Oracle executives voicing their concerns. Oracle’s executive vice president, Ken Glueck, criticized the measure, describing it as an overly broad regulation that would impact nearly all commercial cloud computing globally.

The Commerce Department and the White House have yet to respond publicly to the mounting criticism, but the issue continues to garner significant attention from both industry leaders and policymakers as the Biden administration enters its final days.