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Apple defended its new system to scan iCloud for illegal child sexual abuse materials (CSAM) on Monday during an ongoing controversy over whether the system reduces Apple user privacy and could be used by governments to surveil citizens.

Last week, Apple announced it has started testing a system that uses sophisticated cryptography to identify when users upload collections of known child pornography to its cloud storage service. It says it can do this without learning about the contents of a user’s photos stored on its servers.

Apple reiterated on Monday that its system is more private than those used by companies like Google and Microsoft because its system uses both its servers and software running on iPhones.

Privacy advocates and technology commentators are worried Apple’s new system, which includes software that will be installed on people’s iPhones through an iOS update, could be expanded in some countries through new laws to check for other types of images, like photos with political content, instead of just child pornography.

Apple said in a document posted to its website on Sunday governments cannot force it to add non-CSAM images to a hash list, or the file of numbers that correspond to known child abuse images Apple will distribute to iPhones to enable the system.

“Apple will refuse any such demands. Apple’s CSAM detection capability is built solely to detect known CSAM images stored in iCloud Photos that have been identified by experts at NCMEC and other child safety groups,” Apple said in the document. “We have faced demands to build and deploy government-mandated changes that degrade the privacy of users before, and have steadfastly refused those demands. We will continue to refuse them in the future.”

It continued: “Let us be clear, this technology is limited to detecting CSAM stored in iCloud and we will not accede to any government’s request to expand it.”

Some cryptographers are worried about what could happen if a country like China were to pass a law saying the system has to also include politically sensitive images. Apple CEO Tim Cook has previously said that the company follows laws in every country where it conducts business.

Companies in the U.S. are required to report CSAM to the National Center for Missing & Exploited Children and face fines up to $300,000 when they discover illegal images and don’t report them.

A reputation for privacy

Apple’s reputation for defending privacy has been cultivated for years through its actions and marketing. In 2016, Apple faced off against the FBI in court to protect the integrity of its on-device encryption systems in the investigation of a mass shooter.

But Apple has also faced significant pressure from law enforcement officials about the possibility of criminals “going dark,” or using privacy tools and encryption to prevent messages or other information from being within the reach of law enforcement.

The controversy over Apple’s new system, and whether it’s surveilling users, threatens Apple’s public reputation for building secure and private devices, which the company has used to break into new markets in personal finance and healthcare.

Critics are concerned the system will partially operate on an iPhone, instead of only scanning photos that have been uploaded to the company’s servers. Apple’s competitors typically only scan photos stored on their servers.

“It’s truly disappointing that Apple got so hung up on its particular vision of privacy that it ended up betraying the fulcrum of user control: being able to trust that your device is truly yours,” technology commentator Ben Thompson wrote in a newsletter on Monday.

Apple continues to defend its systems as a genuine improvement that protects children and will reduce the amount of CSAM being created while still protecting iPhone user privacy.

Apple said its system is significantly stronger and more private than previous systems by every privacy metric the company tracks and that it went out of its way to build a better system to detect these illegal images.

Unlike current systems, which run in the cloud and can’t be inspected by security researchers, Apple’s system can be inspected through its distribution in iOS, an Apple representative said. By moving some processing onto the user’s device, the company can derive stronger privacy properties, such as the ability to find CSAM matches without running software on Apple servers that check every single photo.

Apple said on Monday its system doesn’t scan private photo libraries that haven’t been uploaded to iCloud.

Apple also confirmed it will process photos that have already been uploaded to iCloud. The changes will roll out through an iPhone update later this year, after which users will be alerted that Apple is beginning to check photos stores on iCloud against a list of fingerprints that correspond to known CSAM, Apple said.

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Here are 4 major moments that drove the stock market last week

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Here are 4 major moments that drove the stock market last week

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Oracle says there have been ‘no delays’ in OpenAI arrangement after stock slide

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Oracle says there have been 'no delays' in OpenAI arrangement after stock slide

Oracle CEO Clay Magouyrk appears on a media tour of the Stargate AI data center in Abilene, Texas, on Sept. 23, 2025.

Kyle Grillot | Bloomberg | Getty Images

Oracle on Friday pushed back against a report that said the company will complete data centers for OpenAI, one of its major customers, in 2028, rather than 2027.

The delay is due to a shortage of labor and materials, according to the Friday report from Bloomberg, which cited unnamed people. Oracle shares fell to a session low of $185.98, down 6.5% from Thursday’s close.

“Site selection and delivery timelines were established in close coordination with OpenAI following execution of the agreement and were jointly agreed,” an Oracle spokesperson said in an email to CNBC. “There have been no delays to any sites required to meet our contractual commitments, and all milestones remain on track.”

The Oracle spokesperson did not specify a timeline for turning on cloud computing infrastructure for OpenAI. In September, OpenAI said it had a partnership with Oracle worth more than $300 billion over the next five years.

“We have a good relationship with OpenAI,” Clay Magouyrk, one of Oracle’s two newly appointed CEOs, said at an October analyst meeting.

Doing business with OpenAI is relatively new to 48-year-old Oracle. Historically, Oracle grew through sales of its database software and business applications. Its cloud infrastructure business now contributes over one-fourth of revenue, although Oracle remains a smaller hyperscaler than Amazon, Microsoft and Google.

OpenAI has also made commitments to other companies as it looks to meet expected capacity needs.

In September, Nvidia said it had signed a letter of intent with OpenAI to deploy at least 10 gigawatts of Nvidia equipment for the San Francisco artificial intelligence startup. The first phase of that project is expected in the second half of 2026.

Nvidia and OpenAI said in a September statement that they “look forward to finalizing the details of this new phase of strategic partnership in the coming weeks.”

But no announcement has come yet.

In a November filing, Nvidia said “there is no assurance that we will enter into definitive agreements with respect to the OpenAI opportunity.”

OpenAI has historically relied on Nvidia graphics processing units to operate ChatGPT and other products, and now it’s also looking at designing custom chips in a collaboration with Broadcom.

On Thursday, Broadcom CEO Hock Tan laid out a timeline for the OpenAI work, which was announced in October. Broadcom and OpenAI said they had signed a term sheet.

“It’s more like 2027, 2028, 2029, 10 gigawatts, that was the OpenAI discussion,” Tan said on Broadcom’s earnings call. “And that’s, I call it, an agreement, an alignment of where we’re headed with respect to a very respected and valued customer, OpenAI. But we do not expect much in 2026.”

OpenAI declined to comment.

WATCH: Oracle says there have been ‘no delays’ in OpenAI arrangement after stock slide

Oracle says there have been 'no delays' in OpenAI arrangement after stock slide

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AI order from Trump might be ‘illegal,’ Democrats and consumer advocacy groups claim

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AI order from Trump might be ‘illegal,’ Democrats and consumer advocacy groups claim

“This is the wrong approach — and most likely illegal,” Sen. Amy Klobuchar, D-Minn., said in a post on X Thursday.

“We need a strong federal safety standard, but we should not remove the few protections Americans currently have from the downsides of AI,” Klobuchar said.

Trump’s executive order directs Attorney General Pam Bondi to create a task force to challenge state laws regulating AI.

The Commerce Department was also directed to identify “onerous” state regulations aimed at AI.

The order is a win for tech companies such as OpenAI and Google and the venture firm Andreessen Horowitz, which have all lobbied against state regulations they view as burdensome. 

It follows a push by some Republicans in Congress to impose a moratorium on state AI laws. A recent plan to tack on that moratorium to the National Defense Authorization Act was scuttled.

Collin McCune, head of government affairs at Andreessen Horowitz, celebrated Trump’s order, calling it “an important first step” to boost American competition and innovation. But McCune urged Congress to codify a national AI framework.

“States have an important role in addressing harms and protecting people, but they can’t provide the long-term clarity or national direction that only Congress can deliver,” McCune said in a statement.

Sriram Krishnan, a White House AI advisor and former general partner at Andreessen Horowitz, during an interview Friday on CNBC’s “Squawk Box,” said that Trump is was looking to partner with Congress to pass such legislation.

“The White House is now taking a firm stance where we want to push back on ‘doomer’ laws that exist in a bunch of states around the country,” Krishnan said.

He also said that the goal of the executive order is to give the White House tools to go after state laws that it believes make America less competitive, such as recently passed legislation in Democratic-led states like California and Colorado.

The White House will not use the executive order to target state laws that protect the safety of children, Krishnan said.

Robert Weissman, co-president of the consumer advocacy group Public Citizen, called Trump’s order “mostly bluster” and said the president “cannot unilaterally preempt state law.”

“We expect the EO to be challenged in court and defeated,” Weissman said in a statement. “In the meantime, states should continue their efforts to protect their residents from the mounting dangers of unregulated AI.”

Weissman said about the order, “This reward to Big Tech is a disgraceful invitation to reckless behavior
by the world’s largest corporations and a complete override of the federalist principles that Trump and MAGA claim to venerate.”

In the short term, the order could affect a handful of states that have already passed legislation targeting AI. The order says that states whose laws are considered onerous could lose federal funding.

One Colorado law, set to take effect in June, will require AI developers to protect consumers from reasonably foreseeable risks of algorithmic discrimination.

Some say Trump’s order will have no real impact on that law or other state regulations.

“I’m pretty much ignoring it, because an executive order cannot tell a state what to do,” said Colorado state Rep. Brianna Titone, a Democrat who co-sponsored the anti-discrimination law.

In California, Gov. Gavin Newsom recently signed a law that, starting in January, will require major AI companies to publicly disclose their safety protocols. 

That law’s author, state Sen. Scott Wiener, said that Trump’s stated goal of having the United States dominate the AI sector is undercut by his recent moves. 

“Of course, he just authorized chip sales to China & Saudi Arabia: the exact opposite of ensuring U.S. dominance,” Wiener wrote in an X post on Thursday night. The Bay Area Democrat is seeking to succeed Speaker-emerita Nancy Pelosi in the U.S. House of Representatives.

Trump on Monday said he will Nvidia to sell its advanced H200 chips to “approved customers” in China, provided that U.S. gets a 25% cut of revenues.

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