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Lawmakers on the Senate Judiciary Committee found rare alignment at a recent hearing about how Congress can help protect kids from online harms.

The hearing on Tuesday, which included a parent who lost a child to suicide after cyberbullying, representatives from the National Center for Missing & Exploited Children and the American Psychological Association, points to the importance the new Congress is putting on protecting kids on the internet.

They’re speaking out in support of the Kids Online Safety Act (KOSA), which would require sites likely to be accessed by kids 16 or younger to maintain certain privacy and safety protections by default. The bill passed unanimously out of the Senate Commerce Committee last year and was reportedly considered as part of the year-end legislation, though it ultimately didn’t make the cut.

“We must and we will double down on the Kids Online Safety Act,” Sen. Richard Blumenthal, D-Conn., who co-sponsored the bill with Sen. Marsha Blackburn, R-Tenn., said at the hearing.

Blackburn and Blumenthal both held up a newly released 2021 study on youth risks from the Centers for Disease Control and Prevention, which showed that mental health is worsening. The survey found 20% of girls and 11% of boys reported being bullied online over the past year.

President Joe Biden is putting his voice behind the movement for change. Following remarks he made at last week’s State of the Union address, Biden said at an event on Tuesday that, “We have to pass legislation on the damaging technologies having an effect on our kids.”

The level of solidarity on the issue is a rarity in a deeply divided Congress. Though lawmakers have shared similar goals in other discussions around regulating tech, when it comes to protecting kids online, they’re more united in the types of action they want to see take place.

Even so, KOSA and similar measures at the state level have prompted criticism from outside groups, some arguing that the rules would be too difficult to implement in a fair and feasible way.

The groups said last year that vague language requiring platforms to prevent harm to minors could result in restricting too much content, cutting kids off from important information, especially for the LGBTQ community and others that may have limited places to turn. They also warn that some parental consent measures could endanger kids who are experiencing abuse at home.

Evan Greer, director of digital rights advocacy group Fight for the Future, tweeted her displeasure with the legislative efforts on Tuesday.

“I feel outraged that lawmakers like @SenBlumenthal continue to ignore overwhelming opposition from human rights groups and push the same problematic bills we’ve already explained will do more harm than good, and then blames# tech company lobbying when they don’t pass,” Greer wrote.

Blumenthal and Blackburn revised KOSA last year but failed to completely subdue critics.

Mitch Prinstein, chief science officer at the American Psychological Association, said it’s critical to protect kids without cutting them off from useful resources.

“It’s very important to recognize that online discrimination does have an effect on mental health directly,” Prinstein said. “It is important, however, to recognize that the online community also provides vital health information and does provide social support that can be beneficial to this community.”

All six witnesses at Tuesday’s hearing said they support KOSA and see it as an important step toward protecting children on the internet.

At the end of the hearing, Judiciary Committee Chair Dick Durbin, D-Ill., promised the panelists a markup of legislation on the topic, and said the committee would have to work out questions of jurisdiction with the Commerce Committee.

“That doesn’t sound like much but it is,” Durbin said. “It means that we’re going to come together as a Judiciary Committee and put on the table pieces of legislation to try to decide as a committee if we can agree on common goals.”

Durbin said, “I think we can do this, just sensing what I heard today.”

There’s no shortage of concern in Washington, D.C., and beyond surrounding kids on the internet. U.S. Surgeon General Vivek Murthy recently said that 13, the current age allowed to own a social media account, is “too early” to join such platforms.

Sen. Josh Hawley, R-Mo., introduced the MATURE Act (which stands for Making Age Verification Technology Uniform, Robust, and Effective) on Tuesday. The bill would make 16 the legal age to open a social media account and would put the onus on the platforms to stay compliant.

Legislators in Utah also sought to bar social media accounts under age 16. However, a bill that recently passed the state’s House of Representatives removed that provision, instead allowing for consumers to sue social media companies that knowingly cause harm.

The issue of an age limit and its potential effectiveness was a big topic on Tuesday.

Rose Bronstein, whose son Nate died by suicide last year at age 15 after being subject to cyberbullying, told CNBC in a phone interview after the hearing that raising the age limit would make it easier for parents to keep their kids off of social media. Their kids wouldn’t risk isolation because their peers also wouldn’t be allowed to join.

Christine McComas said age limits would have a limited impact.

“Kids are always three steps ahead of us with any kind of tech,” said McComas, whose daughter Grace died by suicide at age 15 in 2012 after experiencing cyberbullying. “We need to really keep talking about all of it and think about it as a societal shift.”

Bronstein and McComas have been pushing their state legislatures in Illinois and Maryland, respectively, to pass statewide protections. California has already instituted its Age-Appropriate Design Code, which shares similar goals as KOSA. On Monday, Maryland introduced its own version of the bill.

“I think people are more aware now than they’ve ever been before,” McComas said. “And certainly, it’s not all talk. We heard congressional members on both sides of the aisle, from ultra conservative to liberal liberal, who see the problem and feel like something needs to be done.”

But other advocates say it’s time for more action.

Kristin Bride, who testified at the hearing, lost her son Carson at age 16 to suicide in 2020 after cyberbullying. Bride said she and other parents are sick of seeing legislation on the issue fail to advance.

“It is so difficult to tell our stories of the very worst day of our lives over and over and over again and then not see change,” Bride told lawmakers. “We’re done with the hearings, we’re done with the stories. We are looking to you all for action and I am confident that you can all come together and do this for us and for America’s children.”

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Microsoft AI chief Suleyman sees advantage in building models ‘3 or 6 months behind’

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Microsoft AI chief Suleyman sees advantage in building models ‘3 or 6 months behind’

Microsoft owns lots of Nvidia graphics processing units, but it isn’t using them to develop state-of-the-art artificial intelligence models.

There are good reasons for that position, Mustafa Suleyman, the company’s CEO of AI, told CNBC’s Steve Kovach in an interview on Friday. Waiting to build models that are “three or six months behind” offers several advantages, including lower costs and the ability to concentrate on specific use cases, Suleyman said.

It’s “cheaper to give a specific answer once you’ve waited for the first three or six months for the frontier to go first. We call that off-frontier,” he said. “That’s actually our strategy, is to really play a very tight second, given the capital-intensiveness of these models.”

Suleyman made a name for himself as a co-founder of DeepMind, the AI lab that Google bought in 2014, reportedly for $400 million to $650 million. Suleyman arrived at Microsoft last year alongside other employees of the startup Inflection, where he had been CEO.

More than ever, Microsoft counts on relationships with other companies to grow.

It gets AI models from San Francisco startup OpenAI and supplemental computing power from newly public CoreWeave in New Jersey. Microsoft has repeatedly enriched Bing, Windows and other products with OpenAI’s latest systems for writing human-like language and generating images.

Microsoft’s Copilot will gain “memory” to retain key facts about people who repeatedly use the assistant, Suleyman said Friday at an event in Microsoft’s Redmond, Washington, headquarters to commemorate the company’s 50th birthday. That feature came first to OpenAI’s ChatGPT, which has 500 million weekly users.

Through ChatGPT, people can access top-flight large language models such as the o1 reasoning model that takes time before spitting out an answer. OpenAI introduced that capability in September — only weeks later did Microsoft bring a similar capability called Think Deeper to Copilot.

Microsoft occasionally releases open-source small-language models that can run on PCs. They don’t require powerful server GPUs, making them different from OpenAI’s o1.

OpenAI and Microsoft have held a tight relationship shortly after the startup launched its ChatGPT chatbot in late 2022, effectively kicking off the generative AI race. In total, Microsoft has invested $13.75 billion in the startup, but more recently, fissures in the relationship between the two companies have begun to show.

Microsoft added OpenAI to its list of competitors in July 2024, and OpenAI in January announced that it was working with rival cloud provider Oracle on the $500 billion Stargate project. That came after years of OpenAI exclusively relying on Microsoft’s Azure cloud. Despite OpenAI partnering with Oracle, Microsoft in a blog post announced that the startup had “recently made a new, large Azure commitment.”

“Look, it’s absolutely mission-critical that long-term, we are able to do AI self-sufficiently at Microsoft,” Suleyman said. “At the same time, I think about these things over five and 10 year periods. You know, until 2030 at least, we are deeply partnered with OpenAI, who have [had an] enormously successful relationship for us.

Microsoft is focused on building its own AI internally, but the company is not pushing itself to build the most cutting-edge models, Suleyman said.

“We have an incredibly strong AI team, huge amounts of compute, and it’s very important to us that, you know, maybe we don’t develop the absolute frontier, the best model in the world first,” he said. “That’s very, very expensive to do and unnecessary to cause that duplication.”

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Former Microsoft CEO Steve Ballmer says, as shareholder, tariffs are ‘not good’

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Former Microsoft CEO Steve Ballmer says, as shareholder, tariffs are 'not good'

President Trump’s new tariffs on goods that the U.S. imports from over 100 countries will have an effect on consumers, former Microsoft CEO Steve Ballmer told CNBC on Friday. Investors will feel the pain, too.

Microsoft’s stock dropped almost 6% in the past two days, as the Nasdaq wrapped up its worst week in five years.

“As a Microsoft shareholder, this kind of thing is not good,” Ballmer said, in an interview with Andrew Ross Sorkin that was tied to Microsoft’s 50th anniversary celebration. “It creates opportunity to be a serious, long-term player.”

Ballmer was sandwiched in between Microsoft co-founder Bill Gates and current CEO Satya Nadella for the interview.

“I took just enough economics in college — that tariffs are actually going to bring some turmoil,” said Ballmer, who was succeeded by Nadella in 2014. Gates, Microsoft’s first CEO, convinced Ballmer to join the company in 1980.

Gates, Ballmer and Nadella attended proceedings at Microsoft’s Redmond, Washington, campus on Friday to celebrate its first half-century.

Between the tariffs and weak quarterly revenue guidance announced in January, Microsoft’s stock is on track for its fifth straight month of declines, which would be the worst stretch since 2009. But the company remains a leader in the PC operating system and productivity software markets, and its partnership with startup OpenAI has led to gains in cloud computing.

“I think that disruption is very hard on people, and so the decision to do something for which disruption was inevitable, that needs a lot of popular support, and nobody could game theorize exactly who is going to do what in response,” Ballmer said, regarding the tariffs. “So, I think citizens really like stability a lot. And I hope people — individuals who will feel this, because people are feeling it, not just the stock market, people are going to feel it.”

Ballmer, who owns the Los Angeles Clippers, is among Microsoft’s biggest fans. He said he’s the company’s largest investor. In 2014, shortly after he bought the basketball team for $2 billion, he held over 333 million shares of the stock, according to a regulatory filing.

“I’m not going to probably have 50 more years on the planet,” he said. “But whatever minutes I have, I’m gonna be a large Microsoft shareholder.” He said there’s a bright future for computing, storage and intelligence. Microsoft launched the first Azure services while Ballmer was CEO.

Earlier this week Bloomberg reported that Microsoft, which pledged to spend $80 billion on AI-enabled data center infrastructure in the current fiscal year, has stopped discussions or pushed back the opening of facilities in the U.S. and abroad.

JPMorgan Chase’s chief economist, Bruce Kasman, said in a Thursday note that the chance of a global recession will be 60% if Trump’s tariffs kick in as described. His previous estimate was 40%.

“Fifty years from now, or 25 years from now, what is the one thing you can be guaranteed of, is the world needs more compute,” Nadella said. “So I want to keep those two thoughts and then take one step at a time, and then whatever are the geopolitical or economic shifts, we’ll adjust to it.”

Gates, who along with co-founder Paul Allen, sought to build a software company rather than sell both software and hardware, said he wasn’t sure what the economic effects of the tariffs will be. Today, most of Microsoft’s revenue comes from software. It also sells Surface PCs and Xbox consoles.

“So far, it’s just on goods, but you know, will it eventually be on services? Who knows?” said Gates, who reportedly donated around $50 million to a nonprofit that supported Democratic nominee Kamala Harris’ losing campaign.

— CNBC’s Alex Harring contributed to this report.

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AppLovin can offer TikTok ‘much stronger bid than others,’ CEO says

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AppLovin can offer TikTok 'much stronger bid than others,' CEO says

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AppLovin CEO Adam Foroughi provided more clarity on the ad-tech company’s late-stage effort to acquire TikTok, calling his offer a “much stronger bid than others” on CNBC’s The Exchange Friday afternoon.

Foroughi said the company is proposing a merger between AppLovin and the entire global business of TikTok, characterizing the deal as a “partnership” where the Chinese could participate in the upside while AppLovin would run the app.

“If you pair our algorithm with the TikTok audience, the expansion on that platform for dollars spent will be through the roof,” Foroughi said.

The news comes as President Trump announced he would extend the deadline a second time for TikTok’s Chinese-owned parent company ByteDance to sell the U.S. subsidiary of TikTok to an American buyer or face an effective ban on U.S. app stores. The new deadline is now in June, which, as Foroughi described, “buys more time to put the pieces together” on AppLovin’s bid. 

“The president’s a great dealmaker — we’re proposing, essentially an enhancement to the deal that they’ve been working on, but a bigger version of all the deals contemplated,” he added.

AppLovin faces a crowded field of other interested U.S. backers, including Amazon, Oracle, billionaire Frank McCourt and his Project Liberty consortium, and numerous private equity firms. Some proposals reportedly structure the deal to give a U.S. buyer 50% ownership of the company, rather than a complete acquisition. The Chinese government will still need to approve the deal, and AppLovin’s interest in purchasing TikTok in “all markets outside of China” is “preliminary,” according to an April 3 SEC filing.

Correction: A prior version of this story incorrectly characterized China’s ongoing role in TikTok should AppLovin acquire the app.

WATCH: AppLovin CEO Adam Foroughi on its bid to buy TikTok

AppLovin CEO Adam Foroughi on its bid to buy TikTok

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