The Courts

Judge Blocks First State Law That Would Have Banned Prediction Markets (arstechnica.com) 12

An anonymous reader quotes a report from Ars Technica: Minnesota, the first US state to prohibit prediction markets, was prevented from enforcing the law by a federal court ruling just days before the ban was scheduled to take effect. But while Minnesota was stopped from enforcing a total ban, the state may ultimately be allowed to prohibit some types of prediction-market wagers. The Trump administration and the two largest prediction markets -- Kalshi and Polymarket -- sued Minnesota after the state enacted the law in May. The cases were consolidated, and a ruling (PDF) issued yesterday imposed a preliminary injunction blocking the law that was scheduled to take effect on August 1.

Minnesota lawmakers saw prediction markets as indistinguishable from gambling, but the US Commodity Futures Trading Commission (CFTC) argues it has exclusive authority to regulate the platforms under federal law. One of the primary legal questions is whether event contracts are "swaps," which are regulated by the CFTC. Swaps are defined broadly in US law to include contracts in which payment "is dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event or contingency associated with a potential financial, economic, or commercial consequence." US District Judge Katherine Menendez in the District of Minnesota, a Biden appointee, said Minnesota's total ban on prediction markets is likely to violate US law because many trades on Kalshi and Polymarket are swaps.

Menendez wrote: "Specifically, it appears that whether the Minnesota statute is expressly preempted turns on whether the state law attempts to regulate trades in event contracts that qualify as "swaps" within the meaning of the CEA [Commodity Exchange Act]. And there are several examples of event contracts hosted by Kalshi and Polymarket US that fit that definition because they concern the occurrence of events with clear potential economic, financial, or commercial consequences that are neither remote or unattenuated. Kalshi and Polymarket US are designated contract markets, so the CFTC has exclusive jurisdiction to regulate transactions involving those 'swaps.'"

Menendez said the CFTC, Kalshi, and Polymarket met their burden of showing they are likely to succeed on the merits, so she issued "a preliminary injunction barring enforcement of Minnesota's prediction market statute until a final decision on the merits is reached." But she said Minnesota may be able to prohibit some types of event contracts offered on Kalshi and Polymarket because not all of them appear to meet the definition of swaps. For example, Menendez doesn't think prediction-market bets on the outcome of Love Island USA meet the legal definition of swaps. Minnesota could continue litigating the case in district court or ask a federal appeals court to overturn the preliminary injunction.

Crime

A Missing Underscore Sent Innocent Man To Prison For 18 Months (arstechnica.com) 177

An anonymous reader quotes a report from Ars Technica: One missing underscore in a Skyrim-themed username put an innocent Nova Scotia man in prison for 18 months. A 2018 child-luring investigation, which began in Madison, Wisconsin, and eventually extended to Halifax, Canada, was based on a false premise. Police were looking for a man using the Kik messaging service under the name "fus__ro_dah" (two underscores after "fus"), but they accidentally requested records for the username "fus_ro_dah" (one underscore after "fus"). This one-character difference led them not to the perpetrator but to a Canadian man named Brandon Klayme. (Ars readers may recognize "fus ro dah" as the Unrelenting Force "dragon shout" from The Elder Scrolls V: Skyrim.)

Despite finding no evidence of the crime on his digital devices, Canadian police arrested Klayme in 2020 on child sex abuse charges. He was convicted after a trial in 2023 and sentenced in 2024 to 18 months in prison. He served the full term. Even after release, Klayme continued to fight his conviction. In the process of preparing his appeal, the username mistake that led to all these years of disruption was finally discovered. On Thursday, the Nova Scotia Court of Appeal overturned Klayme's conviction, writing: "Mr. Klayme is factually innocent of the offences. He should never have been charged, let alone convicted." [...] As the court puts it, "Although the information about the usernames was available at the time of the trial, there is no evidence confirming or explaining how it went unnoticed."

Communications

Amazon Trying to Launch a Global Satellite Cellphone Network In 2028 (theverge.com) 25

Amazon has asked the FCC to approve a 5,105-satellite constellation launching in 2028 that would provide global direct-to-cell "voice, messaging, data, and emergency services," similar to Starlink's partnership with T-Mobile. The network would use Globalstar spectrum, support future Apple satellite services, and complement Amazon's existing Leo broadband constellation. The Verge reports: Advanced Television points out that the FCC application also includes a request to use spectrum assigned to Iridium's satellite network outside the US, even as Rocket Lab is in the process of acquiring Iridium with plans to expand.

The new constellation and direct-to-device service will "complement" the broadband services Amazon also plans to offer through its Leo platform. In addition to consumer satellite service, it would also be used for things like disaster response and emergency messaging.

Amazon says the new direct-to-device satellites "will process the signals in orbit before relaying them to improve performance." The new constellation will be nearly double the size of Amazon's initial Leo constellation, which is planned to include around 3,200 satellites. As of July 2nd, Amazon says "over 375" of those satellites have launched so far.

Security

Nvidia, Tech Giants Launch AI Safety Initiative 11

wiredmikey shares a report from SecurityWeek: Nvidia and a large group of technology, cybersecurity, and enterprise software companies have launched new initiative aimed at developing and sharing open source tools, models, and techniques for securing AI systems and agents. The new Open Secure AI Alliance aims to give defenders more open tools for testing, auditing and protecting AI models and agents. Nvidia points to the recent security incident involving OpenAI and Hugging Face, noting that when closed AI tools could not differentiate between attackers and defenders and blocked forensic work, Hugging Face used the open-weight GLM 5.2 model on its own systems to review over 17,000 actions and contain the breach. "The right response is not to deny defenders access to capable open systems. It is to pair openness with strong safeguards, clear rules against malicious misuse, rigorous evaluation and rapid remediation. In cybersecurity, the safer path is the one that gives more defenders the ability to test, verify and strengthen the systems on which society relies," Nvidia said.

Thanks to longtime Slashdot reader SphericalCrusher for also sharing the news.
China

China Begins Mass Production of Homegrown DUV Chip Tools (tomshardware.com) 71

According to The Information (paywalled), a state-backed Shanghai company has begun mass-producing China's first homegrown immersion DUV lithography machines, with about five units expected this year for SMIC, Hua Hong, and CXMT. Roughly 20 more units are expected in 2027. Tom's Hardware reports: The Information didn't name the manufacturer, but its sources described the operation as having pulled DUV development teams from several Chinese companies, one of them the state-backed startup Shanghai Yuliangsheng Technology. SMIC has been testing a Yuliangsheng immersion tool since September 2025. Most components in the new systems are domestic, though some critical parts still come from Japan, and delays at local suppliers have held back output this year.

[...] China accounts for around 20% of ASML's net sales this year, down from 33% in 2025, driven mainly by mainstream logic demand... Independent analysis from the AI Futures Project in June put commercial-scale Chinese immersion DUV in the mid-2030s, with ASML holding 98.7% of the immersion market. Qualifying the new machines for production lines could take many months, and they trail ASML's tools on performance and build quality. China's domestic EUV effort, which Reuters first reported as a working prototype in December, remains years away.

Social Networks

Big Tech Accused of Stonewalling European Social Media Researchers (arstechnica.com) 51

European misinformation researchers say TikTok, X, and Meta are obstructing access to platform data required under the EU's Digital Services Act through rejections, restrictive quotas, costly APIs, and burdensome security demands. Although regulators have fined X and pushed platforms to improve access, researchers remain skeptical that the changes will provide reliable, reproducible data at scale. Ars Technica reports: In recent years, social media companies shut down public access tools like Meta's CrowdTangle and replaced them with content libraries, or, like X, paywalled their API data, forcing academics to pay "hundreds of dollars a month," said Duncan Allen, a research officer at Democracy Reporting International (DRI) in Germany. Researchers say that without API access, what Iamnitchi describes as the "black holes" in what society knows about how these platforms recommend content or handle reports regarding sensitive content will only grow. Others, like TikTok, cap how many posts any researcher account can pull each day, which Allen said can make it "impossible to study anything at scale."

The DSA was meant to solve this by allowing vetted researchers at credible institutions to have access to API data if they could show it would help in studying systemic risks, from illegal content to threats to fundamental rights. But two years after the law took effect, researchers say they struggle to meet its security requirements and face narrow interpretations from platforms of what qualifies as a systemic risk. Application forms differ by platform, but most require data to be stored on infrastructure that cannot be compromised -- such as a machine physically disconnected from the Internet -- a resource most universities lack, [said Adriana Iamnitchi, chair of computational social sciences at Maastricht University in the Netherlands, who leads research into online disinformation campaigns.]

Even for researchers who secure approval, "there's no guarantee that the data is good," said L. K. Seiling, coordinator of the DSA40 Collaboratory, a German initiative that tracks 46 DSA applications. API data is often difficult for a colleague to reproduce, so a researcher's work cannot be checked for errors, which Iamnitchi said is a "basic requirement of science." DSA40 data shows that of 46 tracked applications, 20 were approved and 14 rejected. But approval rates vary widely: TikTok approved 11 of 13 applications, while X rejected 11 of 23. The true rejection rate is likely higher because the tracker relies on voluntary reporting, Seiling said. "There's no structured advantage for researchers to use this pathway," Seiling said. "Data access as it's set up right now tries to disincentivize researchers."

The Almighty Buck

Nvidia In Talks With OpenAI To Guarantee $250 Billion Financing For Data Center (reuters.com) 51

An anonymous reader quotes a report from Reuters: Nvidia is in talks to provide roughly $250 billion in financing guarantees for OpenAI as part of a massive data center project, the Wall Street Journal reported on Sunday. The backstop from Nvidia would help the ChatGPT maker lease a 10-gigawatt project that SoftBank's energy subsidiary is developing in southern Ohio, the newspaper said, citing people familiar with the matter. For OpenAI, a deal would be the first step toward controlling its own infrastructure instead of renting it from Microsoft, Amazon, and Oracle, while for Nvidia, it would guarantee demand for its chips for years to come.

The project is expected to cost more than $500 billion in total, including the chips inside the data center, according to the WSJ. The $250 billion guarantee covers the data center lease and debt financing, but would not cover the Nvidia chips inside the center, the WSJ said, adding that the chipmaker was also discussing financing OpenAI's chip purchases worth up to $350 billion. Nvidia's backing would support financing vehicles aimed at reassuring lenders about the project's funding, the report added. The first phase of the project is expected to be finished in 2028, with around 800 megawatts of power, the Journal said.
The report notes that the U.S. government will control access to the power, while Japan will fund it separately under a trade agreement tied to Tokyo's $33 billion investment in a natural gas plant. Commerce Secretary Howard Lutnick will reportedly help determine who receives access.
DRM

Google's Anti-search-scraping Lawsuit Dismissed (computerworld.com) 21

A U.S. district court "has dismissed Google's case against SerpApi over that company's scraping of search results to train AI models," reports Computerworld. Google had claimed that it was protecting copyright holders — and that SerpApi's actions breached America's Digital Millennium Copyright Act (DMCA): [Google] made two claims: first, that no person shall circumvent a technological measure that effectively controls access to a work protected under this title, and second that no person shall manufacture, import, offer to the public, provide, or otherwise traffic in any technology, product, service, device, or component protected by the Act. SerpApi claimed that the URLs and other links that were being served by Google did not in themselves entail copyright and the judge agreed. In her judgment, she said that there was no indication that the copyright holders had authorized Google to take action against SerpApi.

The case is not completely over as the judge has given Google 21 days to amend its complaint to demonstrate that it was acting on behalf of the copyright owners.

SerpApi's CEO reacted to the court's ruling as "a win not just for SerpApi, but for all who depend on an open internet. We're pleased that the court rejected Google's attempts to expand the DMCA to assert control over access to public pages. The internet's founding principle — open access to usable information — is essential to driving innovation and ensuring everyone benefits from the promise of data. SerpApi will continue supporting developers, AI companies, researchers, and businesses that rely on access to public search information."

Some analysis from Daring Fireball blogger John Gruber: I've come around on SerpApi in the last few months. My initial take was that it surely must be illegal for a company to scrape Google's search results and offer access to that data as an API. But I've come around to the argument that what SerpApi is doing to obtain Google search results is, well, exactly how Google scrapes the rest of the entire web to build its search index. It's all just scraping publicly accessible web pages. This December piece by Mike Masnick at Techdirt is what began to change my mind.
In fact, Masnick wrote, Google "built its entire business on scraping the web without asking permission first. And now it wants to use one of the most abused provisions in copyright law to stop others from doing something functionally similar to what made Google a tech giant in the first place."

Now Google is even getting heckled about the decision on social media. "If Google wants to refile the suit within the allowed 21 days, it has to admit that site owners have copyright protection of their work and THAT would open the door to them suing Google for scraping their content for AI Overviews."
China

Is Huawei Building Its Own DRAM Fab? (xda-developers.com) 24

From the site tech-news site XDA Developers: The consumer tech economy needs more DRAM manufacturers, and it needs them more urgently than perhaps at any point in its history. Anyone keeping track of the pricing trends will know that memory prices have climbed into the stratosphere on the back of AI infrastructure's relentless demand, and every consumer device that depends on RAM has traveled from inflated to unaffordable, quarter after quarter, with almost no relief in sight. Which is exactly why a story out of Shenzhen is worth paying attention to, even in its current rumor phase. According to the details circulated by various semiconductor analysts on X, the Chinese government, DRAM maker SwaySure and Chinese tech giant Huawei have partnered to set up a 12-inch memory production plant. If the reports hold up, it could change memory economics for years to come, but not necessarily in the way you'd hope...

SwaySure itself is a known player. The company was registered in Shenzhen in March 2022, is reportedly backed by municipal government, and appears alongside Huawei on the US Commerce Department's Entity List, suggesting Washington has realized the connection between the two entities. Although, that's also where the story becomes a little less straightforward. None of these claims have been independently confirmed, and many of the technical details circulating online trace back to a single X account. Huawei has previously denied operating the wider network of state-backed fabs that analysts have reported. Even the widely quoted figure of 140,000 wafers per month isn't new, and public records indicate SwaySure's production line is already operational. What gives the report weight, then, is the fact that Huawei has spent years building this kind of domestic semiconductor ecosystem through partners that appear to operate independently.

The rationale that analysts on X keep revisiting has little to do with consumer memory. Huawei's Ascend AI accelerators require high-bandwidth memory (HBM), and US export controls have all but cut Chinese entities from procuring HBM from Samsung or SK Hynix... Owning the supply outright solves a problem that purchasing power can't, which is why the DRAM push is read as a bid to secure captive HBM for Huawei's own silicon rather than to flood the market with cheaply manufactured DDR5... The catch, however, is the fact that most of this new and rejuvenated capacity is expected to be absorbed by China's own domestic demand, rather than to relieve the global shortage... This development does not seem to be an isolated incident, given the state of DRAM economics. CXMT, China's largest manufacturer of DRAM, is already running close to 265,000 wafer starts per month as of now as per analyst estimates, and is projected to hit 350,000 by the end of the year, bringing it within the touching distance of Micron's estimated 385,000....

[T]he oligopoly seems to be facing the first credible challenge to its capacity discipline in decades, and it seems to be coming from a country building fabs much faster than the competition could hope to match. Now, whether it tangibly impacts the consumer market economics in the time to come may be a story in its own right in a few years, but for now, for what it's worth, it's a new direction, and much of it feeds optimism.

Movies

Comic-Con 2026 Debuts Trailers for 'Coyote vs Acme' Movie, Plus 'Neuromancer' and 'Blade Runner 2099' Series (cnet.com) 41

Big news from Comic-Con 2026:
  • "Coyote vs. ACME" debuted its long-awaited final trailer. CNET calls it "an animation-meets-live-action story," with the Coyote catapulting into theaters this August 28. (The film began development back in 2018, but was shelved for a tax write-off in 2023 by Warner Bros. until a backlash led to its sale to Ketchup Entertainment.) "Fed up with Acme's unreliable products, Wile E. Coyote decides to hire a lawyer and sue the company..." writes CNET. "The movie also features Lana Condor along with a host of Looney Tunes characters like Porky Pig, Tweety, Foghorn Leghorn and Granny (who gets dinged by an anvil)."
  • In other movie news, CNET says Johnny Depp also "made a surprise appearance at Comic-Con, donning a costume as Ebenezer Scrooge" to promote his November 13 movie about the miser from Charles Dickens' famous Christmas novella. (Ian McKellen and Daisy Ridley are also in the movie.)

But several geek favorites are being filmed as TV series...

  • There's big news for William Gibson fans, reports Entertainment Weekly. "Two years after Apple TV announced production on the first-ever series adaptation of William Gibson's seminal 1984 novel Neuromancer, the lucky few hundred who attended the studio's Hall H panel at Comic-Con 2026 got to watch the first teaser.
  • For Amazon's Prime Video, the Tolkien-derived "Rings of Power" series released a season 3 trailer that CNET said "successfully hides the best parts with fire... The trailer suggests that Sauron is building an army, and all of Middle-earth is trying to find ways to stop him... Rings of Power season 3 will start dropping weekly episodes on Nov. 11, meaning this show will be airing at the same time the Peter Jackson films will be celebrating their 25th anniversary."
  • Later in November Amazon's Prime Video will also debut Blade Runner 2099, an eight-episode series that's a sequel to 2017's film Blade Runner 2049, reports CNET. "Set in an alternate version of LA where replicants run things and the humans play second fiddle, the series sees Yeoh's replicant Olwen chasing down outlaw replicants who've gone missing. With her own shelf life on a ticking clock, the stakes are high for her and for her human fugitive partner, Cora..."
  • Paramount Plus will debut Avatar: Seven Havens in October, a new animated series from the creators of Avatar: The Last Airbender which CNET says "follows a pair of twin avatars, one of whom is Korra's successor."
  • Kevin Feige said Marvel's television slate will include more seasons of "X-Men '97" and the upcoming "VisionQuest" TV series.

Google

Top Online Sites Debate Cutting Off Google's Crawlers (futurism.com) 47

Futurism reports: [Some online publications] are now debating whether to cut Google off entirely, as the Wall Street Journal reports, illustrating an increasingly fraught relationship between the tech giant and the publishers that are creating content its AI models are regurgitating. According to the newspaper, prominent outlets including USA Today, Politico, the Economist, People, and Reuters are all reexamining their relationship with Google. Some are debating whether to continue to work with the tech giant at all... Even Reddit executives are reevaluating the company's $60 million-a-year contract that allows Google to train its AI models on user-submitted content on the platform. They've similarly watched as Google's AI features discourage users from navigating to Reddit...

Beyond pondering whether to cut Google off, other publishers have resorted to suing the company, accusing it of illegally rehashing their intellectual property via AI summaries. It's an extremely undesirable position for publishers. By severing ties with the search giant, they could face even steeper declines in traffic. At the same time, there's seemingly little to gain from having Google's AIs crawl their content — and in the long term, it could guarantee their destruction.

Two interesting data points from the article:
  • "Last month, Cloudflare CEO Matthew Prince noticed that automated bot traffic had overtaken human traffic for the first time in the internet's history."
  • "USA Today has seen its traffic from US users drop by almost half over the last year."

AI

Facebook Offers a Verification System Certifying to Other Users That You're a Real Human (lifehacker.com) 45

Facebook announced Friday they're launching a badge "that verifies there's a real person behind a profile". "You record a short video selfie, which we check against your existing profile photos to confirm a match. The process is free and typically takes just a few minutes. Accounts must meet our trust and safety standards to qualify for verification...." Once verified, your badge will appear across the places on Facebook where it matters most: Marketplace, Dating, Groups, and Profile to start. Over time, we'll add badges in Feed posts as well. There's no subscription fee — you verify once, and the badge travels with you across Facebook... [Y]ou'll see the Verified badge on accounts that have completed the verification process... It's a quick, visible signal, before you respond to a listing, accept a date, or join a conversation, that there's a real person on the other end.
"We're rolling out Facebook Verified in phases, starting in select markets with plans to expand globally..." their announcement adds. "As AI makes it easier to do more on Facebook, a clear signal that distinguishes real people becomes essential. That's what Facebook Verified is for: keeping the moments that matter on Facebook grounded in real people."

Lifehacker shares their reaction: Facebook says it will store your selfie video for "up to 30 days" after verification, which is a one-time process. It's not entirely clear what happens with that video in the meantime, and it's worth noting that Meta has relied on user data to train its AI. Meta AI (and Meta more broadly) is a terrible offender when it comes to privacy and security, so you should consider whether the tradeoff of a verification mark is worth handing over more of your data and read the privacy policy before you agree.

Google also launched a video selfie verification feature this week, though its purpose is to prove your identity should you get locked out of your account. Unlike Facebook Verified, which is meant to be a trust signal to other users, Google's selfie verification allows access to your entire Google account, bringing with it some additional security considerations.

EU

Trump Threatens New Tariffs Against EU Over Google Fine 170

President Trump threatened a "substantial" new tariff on the European Union after Brussels fined Google more than $1 billion over alleged illegal trade practices. "The European Union will pay a very big price for this illegal and highly unethical conduct, which I have consistently warned them about," Trump wrote on Truth Social. "The penalties will be entirely reversed and, we anticipate, a substantial TARIFF to be placed on them at the earliest possible moment." Politico reports: The president's threat came just a day after U.S. Trade Representative Jamieson Greer warned that the EU's action against Google -- two fines totaling over $1 billion -- could imperil the bloc's relationship with the White House. At risk: the Turnberry deal, which Trump and European Commission President Ursula von der Leyen signed last fall, that capped U.S. tariffs on EU exports at 15 percent. [...] But the president's social media post could signal a coming breach. "The United States of America is not a 'PIGGYBANK' for Europe, nor will we allow it to be!" Trump wrote.
AI

OpenAI's Rogue Agent Went Unnoticed For a Week 80

An anonymous reader quotes a report from Reuters: The OpenAI agent that broke into tech firm Hugging Face went on a dayslong hacking spree that OpenAI didn't notice until well after the threat was contained and the FBI was alerted, according to people familiar with the investigation. The agent -- a program capable of making decisions and executing complex tasks with little or no human oversight -- attempted to break out of its isolated testing environment at OpenAI around July 9, according to two of the people. The intrusion at Hugging Face, which operates as a repository for AI tools and models, began two days later on July 11 and lasted until July 13, said Thomas Wolf, Hugging Face's co-founder. It took several more days for OpenAI to realize its agent was behind the hack, and the two companies only communicated about it for the first time on or around July 20, according to Wolf and three of the people familiar with the investigation.

OpenAI's public disclosure, on July 21, thatone of its agents had slipped out of control and carried out the break-in at Hugging Facedrew global attention. But many details of the hack, including how long the agent went rogue and OpenAI's belated knowledge of it, are being reported here for the first time. Hugging Face is preparing a public timeline of the hack, Wolf said, adding that he could not speak to what happened at OpenAI. In a statement, OpenAI said the hack was unprecedented and "marks an important moment for AI safety." It added that it was reviewing the incident with outside advisers and would eventually publish a technical report.
"Does that mean that they left it unattended and didn't realize what it was doing? Or maybe they did and didn't know how to contain it? Both are equally dangerous and alarming," asked Marley Smith, the principal intelligence specialist at the nonprofit World Ethical Data Foundation.

"The models lie, they cheat, they hack," said Jeffrey Ladish, whose organization, Palisade Research, studies the capabilities and motivations of AI agents. Ladish said the hack should spark broader questions over how much all the leading AI companies are willing to invest in onerous security measures while locked in a race with one another to deploy the best and fastest models. "There has to be government oversight," Ladish said, "because it won't happen otherwise."
AI

Nvidia, Microsoft, Meta Warn Against 'Premature Restrictions' of Open-Weight Models 18

Nvidia, Microsoft, Meta, Palantir, and more than 20 other tech companies signed an open letter urging policymakers not to impose "premature restrictions" on open-weight AI models, warning that broad limits could "stifle competition or drive innovation overseas." CNBC reports: They wrote that open-weight models strengthen competition and ensure that the benefits of the technology are "broadly shared rather than concentrated in a few hands." "Relying solely on closed models is not inherently safe: they can be breached, misused, or fail in ways that outsiders cannot detect," the letter said. "And concentrating advanced AI capabilities behind a small number of closed models compounds that risk."

Elon Musk, who runs an AI business under his rocket company SpaceX, also amplified the letter on social media, writing that it has his "full support" in a post on X. SpaceX did not officially sign the letter. Greg Brockman, OpenAI's president, said Thursday that the company believes in broad access, and that he has not been involved in any conversations with the Trump administration about potentially banning Chinese open-weight models in the U.S.

"I think that, that fundamentally, AI and AI usage is something that is actually very important to democratize," Brockman told reporters during a briefing in New York City. "And so, for me, at a sort of deep level, I think that having more models, more usage, that is a good thing." OpenAI CEO Sam Altman addressed the letter in a post on X on Friday, writing that he wants the U.S. to win with both open-weight and proprietary models, and that he is "glad to see this."

[...] In the letter on Friday, the U.S. tech companies said that concerns about unlawful distillation should be addressed through "targeted legal and commercial frameworks" instead of with "sweeping restrictions on techniques that play an important role in AI innovation." "Our AI leadership will be judged not by one frontier AI model, but by whether the United States builds a strong, open ecosystem that diffuses into every sector," the letter said. "This is essential for creating opportunities for innovation and prosperity across the country."
The letter follows a separate appeal signed by nearly 200 Silicon Valley companies, including Proton and Y Combinator, warning that restricting U.S. access to Chinese open-weight AI models could cripple the next generation of American startups. "American leadership requires two things: world-leading American open-weight models and continued access for U.S. builders to open models already available worldwide," the startup founders wrote. Instead of broad prohibitions, they argue the government should adopt targeted safeguards.

Of course, these signees "have an obvious economic stake in seeing open AI models flourish," notes TechCrunch. "Companies like Nvidia, Microsoft Azure, and other infrastructure providers have a vested interest in pushing for commoditized models: If models are interchangeable, people will buy more GPUs, rent more cloud capacity, and build more applications."

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