Connect with us

Published

on

After what started as a hopeful year for tech policy, the 117th Congress is about to close out its term with many key efforts tabled.

Despite bipartisan support for antitrust reform targeting digital tech giants, a digital privacy framework and new guardrails for kids on the internet, lawmakers headed home without passing the hallmark bills of those issues. And the Senate has yet to vote to confirm the final nominee to fill out the Federal Communications Commission, leaving that agency incomplete for the entirety of the Biden administration so far.

Congress did pass the CHIPS and Science Act, which incentivizes domestic semiconductor manufacturing after shortages highlighted the risks of overseas production. It also included in the year-end spending package a bill that will raise funds for the antitrust agencies by raising merger filing fees on large deals, as well as a measure banning TikTok on government devices in light of national security concerns due to its ownership by a Chinese company.

And even when it comes to many of the bills that remain in limbo, progress this year shows significant headway. That’s the case with privacy legislation, where a bill proposed this year gained bipartisan support, passing out of a House committee with a near-unanimous vote. Still, it lacks the backing of the Senate Commerce Committee’s Democratic chair, Maria Cantwell of Washington, which is seen as critical to passing the legislation.

“Any privacy legislation has to be bipartisan,” said Craig Albright, vice president of U.S. government relations for enterprise software industry group BSA. “Senator Cantwell has to be part of the process. There’s no going around her, she will be one of the key leaders. But I think if the House can demonstrate continued progress, I think that that will create more of an environment for the Senate to be able to act.”

Albright added that the House committee leaders who championed the bill, Energy and Commerce Chair Frank Pallone, D-N.J., and Ranking Member Cathy McMorris Rodgers, R-Wash., expected to become chair next year under Republican House control, proved with the panel vote “that substantively, you can come up with a bill that has broad bipartisan support.”

“I think that puts this next Congress in a stronger starting position than we’ve had before,” Albright said.

Lawmakers face a tougher landscape next year if they hope to pick up where they left off on tech reform. With Democratic control of the Senate and Republican control of the House in 2023, policy watchers stress that bipartisanship will be essential to make bills into law.

While that might dash hopes for most antitrust reforms, which though bipartisan are not generally supported by Republicans expected to lead the House and key committees, it could mean there’s still a chance for legislation on digital privacy, where both parties have stressed urgency despite years of failing to compromise on areas of disagreement.

Still, lawmakers who led aggressive antitrust proposals and other tech reforms have signaled they’ll continue to fight for those measures next year.

“This is clearly the beginning of this fight and not the end,” Sen. Amy Klobuchar, D-Minn., whose bill barring online platforms from favoring their own services on their marketplaces failed to make it into year-end must-pass bills, said in a statement following the release of the spending package text. “I will continue to work across the aisle to protect consumers and strengthen competition.”

Sens. Richard Blumenthal, D-Conn., and Marsha Blackburn, R-Tenn., said in a statement that while their Kids Online Safety Act, setting new guardrails for sites likely to be accessed by kids, and Open App Markets Act, imposing new regulations on app stores run by Apple and Google, did not make it into the spending bill, they are “resolved to reintroduce and pass this legislation in the next Congress.” The pair blamed the bills’ failure to advance on intense lobbying efforts by the tech industry against them.

A survey of congressional staffers by Punchbowl News found that while a majority of Capitol Hill respondents expect a less productive session in terms of passing meaningful legislation, the tech agenda is high up on the expected list of priorities. Punchbowl said that 56% of respondents anticipated action on bills targeting Big Tech, a percentage that was second only to those who expect to see action targeting inflation.

Tech regulation is Democrats’ top priority, according to Punchbowl, with 59% of respondents choosing it as one of their chief issues. Among lobbyists and business executives surveyed by Punchbowl, 55% predicted lawmakers could crack down on a major tech company, with TikTok coming out as the most likely target, followed by Facebook parent Meta.

And while it’s unlikely to result in new laws, House Republicans have signaled they’ll use their majority to focus on tech issues that have taken a backseat while Democrats held the gavels in both chambers. Rep. Jim Jordan, R-Ohio, who’s expected to lead the House Judiciary Committee, signaled he’ll likely use that power to focus on tech companies’ relationships with Democratic politicians and allegations of bias and censorship by social media platforms.

Earlier this month he wrote to the CEOs of Apple, Amazon, Google, Meta and Microsoft, demanding information about what he called “the nature and extent of your companies’ collusion with the Biden Administration.” He said the letters should serve as a formal request to preserve records related to the request.

Lawmakers are also likely to spend more time looking at crypto regulation, after the downfall of exchange FTX alleged fraud of its founder Sam Bankman-Fried thrust the industry into the limelight before Congress. Legislators have already considered some legislation targeting the industry, and incoming House Financial Services Chair Patrick McHenry, R-N.C., has indicated that making a clearer regulatory framework for crypto is a priority.

One of the key questions lawmakers have wrestled with is who should be the agency in charge of overseeing the industry. That question has so far gone unanswered, with many industry players advocating for the Commodity Futures Trading Commission while some consumer advocates preferring the Securities and Exchange Commission, which is larger and better resourced. One prominent bipartisan bill in the Senate would put the CFTC in charge.

Just like in 2022, next year’s tech policy agenda will be subject to the whims of Congress, and could be especially susceptible if the country sees some level of economic downturn as many experts expect.

“Everybody has their desire to regulate tech. But I can’t help but wonder what that desire looks like, depending on the economic outlook of the United States in Q1 of 2023,” said James Czerniawski, senior policy analyst for technology and innovation at the Koch-backed advocacy group Americans for Prosperity, pointing to high interest rates and job cuts in the tech sector. “If we were to go and enter into a recession at some point in early next year, which isn’t out of the realm of possibility, that might go and rejigger priorities from Congress to more immediate things.”

Czerniawski said the push for regulation in tech seems to be based on an “assumption that tech is this thing that’s just immovable and going to be around for the test of time with these companies’ names attached to it. And, if anything, I think that the past year and change has shown that that’s not necessarily true.”

“I think that it’s pretty easy to beat up on Big Tech when they’re so successful and they’re pulling in record profits,” said Tom Romanoff, director of the technology project at the Bipartisan Policy Center think tank, which has received funding Amazon and Meta, according to recent donor disclosures. “It becomes a different equation when constituents and districts are upset because they got laid off in one of these very high paying jobs. And so I think if there is an economic downturn, the focus will shift to the economy.”

Romanoff added that certain global dynamics could also shift the focus away from increased tech regulation, such as if tensions escalate between China and Taiwan, where a large portion of semiconductors are currently produced. He said an event like that could cause a shift from an “internal focus of what these large companies mean for U.S. democracy, to kind of a national defense strategy — what does it mean in wartime to regulate an industry that is very much critical to any wartime industry.”

Still, Albright of BSA sees focus on the tech sector in Congress remaining high as concerns that have existed in the past are not going away.

“I think the economy will go up and down,” he said. “But the importance of tech policy issues will still be strong.”

Subscribe to CNBC on YouTube.

WATCH: Crypto is here. Are you ready?

Continue Reading

Technology

OpenAI tops 400 million users despite DeepSeek’s emergence

Published

on

By

OpenAI tops 400 million users despite DeepSeek's emergence

Brad Lightcap of OpenAI.

Courtesy: OpenAI

OpenAI appears to be growing quickly despite increasing competition. 

The San Francisco-based tech company had 400 million weekly active users as of February, up 33% from 300 million in December, the company’s chief operating officer, Brad Lightcap, told CNBC. These numbers have not been previously reported.

Lightcap pointed to the “natural progression” of ChatGPT as it becomes more useful and familiar to a broader group of people.

“People hear about it through word of mouth. They see the utility of it. They see their friends using it,” Lightcap said in an interview, adding that it takes time for individuals to find use cases that resonate. “There’s an overall effect of people really wanting these tools, and seeing that these tools are really valuable.”

OpenAI is seeing that spill over to its growing enterprise business. The company now has 2 million paying enterprise users, roughly doubling from September, said Lightcap, pointing out that often employees will use ChatGPT personally and suggest to their companies that they implement the tool. 

“We get a lot of benefits, and a tail wind from the organic consumer adoption where people already have familiarity with the product,” he said. “There’s really healthy growth, on a different curve.”

Developer traffic has also doubled in the past six months, quintupling for the company’s “reasoning” model o3, according to Lightcap. Developers use OpenAI to integrate the technology into their own applications. OpenAI counts Uber, Morgan Stanley, Moderna and T-Mobile among some of its largest enterprise customers.

Lightcap likened this usage to cloud services, which Amazon Web Services pioneered two decades ago. While the consumer business may grow faster since people can adopt it at will, enterprise is in the “process of building up,” he said. 

“There’s a buying cycle there, and a learning process that goes into scaling an enterprise business,” Lightcap said. “AI is going to be like cloud services. It’s going to be something that you can’t run a business that ultimately is not really running on these very powerful models underneath the surface.”

The DeepSeek effect

OpenAI’s growth comes amid new competition from Chinese competitor DeepSeek, which roiled tech markets in January as investors feared it would hamper future profitability of U.S. artificial intelligence companies and their dominance. Megacap tech companies were hit especially hard. Nvidia lost 17% on the Monday DeepSeek made waves, wiping off almost $600 billion in market value.

Later that week, OpenAI accused DeepSeek of improperly harvesting its models in a technique known as distillation. Lightcap said the new competition hasn’t changed the way OpenAI thinks about open source, their product road map or mega-spending plans.

“DeepSeek is a testament to how much AI is like entered the public consciousness in the mainstream — it would have been unfathomable two years ago,” he said. “It’s a moment that shows how powerful these models are and how much people really care.”

Besides DeepSeek’s emergence, OpenAI has also been dealing with a tense time on the legal front. 

Billionaire Elon Musk, a company co-founder, has sued OpenAI for breach of contract as it attempts to convert into a for-profit. Microsoft has poured billions into the company while SoftBank is close to finalizing a $40 billion investment that could value the company at close to $300 billion, according to sources familiar with the deal.

Musk and a group of investors bid to buy the nonprofit’s assets for $97.4 billion earlier this month. In a letter to Musk’s attorney, OpenAI’s lawyer said the company’s board determined that Musk’s “much-publicized ‘bid’ is in fact not a bid at all.” OpenAI Chairman Bret Taylor said in a statement that the company “is not for sale.”

“The numbers tell the story,” Lightcap said. “We try to be very transparent about where we stand on all of this. (Musk) is a competitor. He’s competing. It’s an unorthodox way of competing.”

Don’t miss these insights from CNBC PRO

DeepSeek is causing reckoning for OpenAI, Anthropic, says Redpoint Ventures' Logan Bartlett

Continue Reading

Technology

Chinese smartphone firm Oppo launches slim $1,870 folding phone to rival Samsung, Huawei

Published

on

By

Chinese smartphone firm Oppo launches slim ,870 folding phone to rival Samsung, Huawei

Oppo’s new Find N5 folding smartphone on display at a press briefing in London.

Ryan Browne | CNBC

Chinese smartphone firm Oppo has unveiled its new flagship folding phone Thursday, touting a slimmer body and artificial intelligence-focused features in a bid to compete with high-end foldable devices from the likes of Samsung and Huawei.

The company’s Find N5 phone that can fold in half, will retail at a starting price of 2,499 Singapore dollars ($1,867.70).

When it’s folded shut, the Find N5 looks like a normal bar-shaped phone with a 6.62-inch display. The device can then be folded outward to show a larger, 8.12-inch tablet.

Most notably, the phone has an ultra-thin design. When closed, it measures 8.93 millimeters thick, while when opened out in tablet form, the Find N5 has a depth of 4.21 millimeters.

That’s slimmer than Samsung’s Galaxy Fold 6, which the South Korean tech giant released last year.

Inside the device is a razer-thin 5,600 milliampere-hour (mAh) battery that’s no bigger than a credit card. Oppo said the battery incorporates a silicon-carbon material, which enables high battery capacity despite its small size.

Oppo is hoping it can win business from the likes of Samsung and Chinese tech giant Huawei, both major smartphone players seeking to shake the market out of an innovation slowdown with flashy new models that can bend.

'Sea of sameness': Are smartphone makers out of ideas?

AI assistant features

Like many other smartphone makers, Oppo is investing more into artificial intelligence-focused features on the device.

The Oppo Find N5 has a triple-camera setup that includes a telephoto lens that can zoom in up to 30x thanks to assistance from an AI-powered image enhancement feature, dubbed AI Telescope Zoom.

It also comes with a personal AI assistant that can interpret and summarize documents, generate summaries of phone calls and translate video calls and other content displayed on the screen.

Addressing concerns around privacy, Oppo said that some data is processed directly on the device while other information is stored in the cloud. In international markets, Oppo is using Google as its AI and cloud computing technology partner.

Controlling a Mac with an Android phone

Oppo also talked up a new feature that enables users to connect their phone to a Mac computer. Using an app called O+ Connect, users can link the Find N5 to any Mac desktop machine and instantly transfer photos and other files between devices — so long as they’re connected to the same Wi-Fi network.

Users can also choose to remotely control a Mac from the Find N5. The Mac’s display can shut off and then reappear on the Find N5’s screen. The remote control feature only requires mobile internet or Wi-Fi to sync up a Mac device’s data with the Find N5 in real-time.

Huawei launches $3,660 trifold phone outside of China for the first time

Continue Reading

Technology

Europe risks becoming a ‘museum’ if it doesn’t innovate in AI and deregulate, Swedish PM warns

Published

on

By

Europe risks becoming a 'museum' if it doesn't innovate in AI and deregulate, Swedish PM warns

Swedish Prime Minister Ulf Kristersson during a press conference on Jan. 17, 2025.

Florian Gaertner | Photothek | Getty Images

STOCKHOLM — Europe is at risk of becoming a “museum” if it doesn’t soften strict curbs on artificial intelligence technologies and deregulate, Sweden’s Prime Minister Ulf Kristersson said Thursday.

“I think we really need to step up in Europe … the American economy, Chinese economy have been growing far faster compared to the European economies over the last 20 years,” the premier told attendees of the Techarena event in Stockholm.

“If we don’t change that, Europe will actually become some kind of a museum compared to other parts of the world,” he added.

Kristersson’s voice joins a chorus of European leaders who spoke at the Paris AI Action Summit last week, stressing the need for the region become a more competitive player in the global AI race.

French President Emmanuel Macron announced a 109-billion-euro ($113.7 billion) investment in AI, which includes commitments from both foreign investors like the United Arab Emirates and U.S. American and Canadian investment funds, as well as domestic firms like Iliad, Orange and Thales.

Macron at the time compared the scale of the investment commitment to the $500 billion Stargate private AI investment venture announced by President Donald Trump last month.

European Commission President Ursula von der Leyen also said that the EU would mobilize a total of 200 billion euros ($208.6 billion) for AI investments in Europe.

Against this backdrop, U.S. Vice President JD Vance took aim at Europe, arguing officials in the continent have become too heavily focused on regulating AI instead of embracing its growth potential.

Touting America as “the leader” in the technology, Vance said that the U.S. wants its European allies to foster a more favorable attitude to the technology than it has done to date.

“To create that kind of trust, we need international regulatory regimes that fosters the creation of AI technology rather than strangles it, and we need our European friends in particular to look to this new frontier with optimism rather than trepidation,” Vance told attendees at the Paris summit.

‘Not good enough’

Tech executives have previously criticized the EU for taking too strict a regulatory approach to AI. The bloc’s landmark AI Act, which became enforceable this year, is the first comprehensive set of rules aimed at safeguarding against risks posed AI.

“To be able to compete in the new geopolitical context, Europe needs to become a place where business and innovation can thrive,” Kristersson said Thursday. “That means less regulation. That means more access to capital and talent.”

He added, “As it stands now, we’ve got companies having troubles using the latest technology due to uncertainties with the European legislation, companies founded in Europe relocating to the U.S. due to the lack of access to capital. That is simply not good enough.”

Continue Reading

Trending