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Brazil Judge Demands Big Tech Compliance with Local Laws to Continue Operations

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Brazilian Supreme Court judge Alexandre de Moraes stated on Wednesday that tech firms must comply with local laws to remain operational in the country, highlighting the government’s firm stance on regulating online platforms. While he did not name any specific companies, his remarks followed a recent announcement by Meta to scale back its U.S. fact-checking program and reduce restrictions on discussions about sensitive issues like immigration and gender identity.

Moraes, speaking at an event marking the second anniversary of the 2021 riots in Brazil, emphasized that the court would not allow companies to profit from hate speech. “In Brazil, (the companies) will only continue to operate if they respect Brazilian legislation, regardless of the rant of Big Tech managers,” he asserted.

This statement comes after Brazil’s Supreme Court had temporarily suspended the social media platform X (formerly Twitter) for over a month last year for failing to comply with court orders, including those related to moderating hate speech. Judge Moraes issued the initial suspension order, which was later unanimously upheld by a five-member panel. In response, X’s owner, Elon Musk, denounced the action as censorship but ultimately complied by blocking certain accounts to resume operations in Brazil.

In a separate development, Brazilian prosecutors have ordered Meta to clarify whether its changes to the fact-checking program in the U.S. will also apply in Brazil. Meta, which did not comment on the matter through its Brazil office, was given a 30-day deadline to respond. This order is part of an ongoing investigation into how social media platforms address misinformation and online violence in Brazil.

 

German Government Considers Leaving X Over Algorithm Concerns, Spokesperson Reveals

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The German government is actively evaluating the possibility of abandoning its presence on X, formerly known as Twitter, citing concerns over the platform’s algorithms. A government spokesperson confirmed on Friday that this issue is under continuous review, especially following a live broadcast on the platform featuring Elon Musk and Alice Weidel, the leader of the far-right Alternative for Germany (AfD) party.

The spokesperson explained that X and other social media platforms have algorithms that promote content in ways that are not conducive to “calm, objective, and balanced discourse,” but instead tend to encourage agitation and polarization. Although the government has not made a final decision, it has chosen to remain on the platform for the time being due to its ability to reach a broad audience.

Musk’s growing support for far-right and anti-establishment parties, particularly in the lead-up to Germany’s February 23 election, has sparked controversy. German institutions, including unions and universities, have already distanced themselves from X in protest. During a live session on Thursday, Musk reiterated his endorsement of the AfD, a far-right party that is considered extremist by German security services, which has led to increasing tensions in Berlin.

However, the government spokesperson clarified that concerns over the platform are not directly related to Musk’s political involvement in Germany. The spokesperson emphasized that it is up to the European Commission in Brussels to determine whether X is complying with EU laws, especially during election periods.

 

HPE Secures $1 Billion AI Server Deal for Elon Musk’s X

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Hewlett Packard Enterprise (HPE) has finalized a deal valued at over $1 billion to supply Elon Musk’s social media platform, X, with servers optimized for artificial intelligence (AI) workloads, according to a report by Bloomberg News. The agreement, finalized late last year, comes amid rising demand for AI-specific hardware from businesses leveraging AI applications.

Bloomberg’s sources indicated that HPE secured the deal over competing bids from Dell Technologies and Super Micro Computer, both of which also sought to provide the necessary equipment for X. However, HPE has declined to comment on the details of the deal.

The demand for AI servers has surged as companies, including Musk’s various ventures such as Tesla and xAI, seek hardware capable of supporting advanced AI tasks. Following the news, shares of HPE saw a 1% rise in afternoon trading.