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TikTok Chief Executive Shou Zi Chew reacts during a session for him to testify before a House Energy and Commerce Committee hearing entitled “TikTok: How Congress can Safeguard American Data Privacy and Protect Children from Online Harms,” as lawmakers scrutinize the Chinese-owned video-sharing app, on Capitol Hill in Washington, March 23, 2023.

Evelyn Hockstein | Reuters

“Welcome to the most bipartisan committee in Congress,” boomed Rep. Buddy Carter, R-Ga., speaking to the TikTok CEO Shou Zi Chew, a couple hours into a marathon hearing about the potential threat to U.S. consumers from the massively popular short-form video app.

“We may not always agree on how to get there, but we care about our national security, we care about our economy and we sure as heck care about our children,” Carter said.

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Chew found little reprieve during the questioning from either side of the aisle on Thursday. Lawmakers grilled him on the app’s potential to harm kids through its addictive features and potentially dangerous posts, as well as whether data from U.S. users could end up in the hands of the Chinese government through its China-based owner, ByteDance.

After more than five hours of questioning, it’s clear that lawmakers on the committee are not satisfied with TikTok’s current ownership structure, even if not all of them are calling for a full ban. But Chew’s testimony did not quell many concerns that lawmakers had about its ties to China or the adequacy of its risk-mitigation plan, Project Texas. In some cases, it may even provide fodder for those who believe the risk from TikTok is unacceptable.

“I’ve not been reassured by anything you’ve said so far and I think quite frankly your testimony has raised more questions for me than answers,” Rep. Lisa Blunt Rochester, D-Del., said at one point in the hearing.

It’s not clear how Thursday’s hearing will translate into action. But several members seemed focused on passing a comprehensive digital privacy bill, like the one the panel approved last Congress but didn’t get to the floor for a full chamber vote. That sort of legislation would help resolve data privacy concerns that exist across all tech companies, including U.S. businesses like Meta, Google, Twitter and Snap.

Congress has been mulling such a bill for years with no results. Rep. Greg Pence, R-Ind., noted this was the 32nd hearing Congress has held on privacy and Big Tech.

A ban or forced sale of the app, which some members think is the only way to solve the immediate risks, is another matter. The Committee on Foreign Investment in the U.S. (CFIUS) is reviewing ByteDance’s acquisition of TikTok’s predecessor app, Musical.ly. It could recommend that the president force divestment if members can’t agree on an acceptable alternative to mitigate national security risks.

Or, the government could find other ways to try to ban the app. For example, the bipartisan RESTRICT Act introduced in the Senate would give the Commerce secretary the ability to review technology from foreign adversary countries and recommend the president ban the technology if the risks can’t be appropriately mitigated.

In one particularly dramatic moment on Thursday, Rep. Kat Cammack, R-Fla., played a video she found on TikTok showing what appeared to be an animated gun continuously reloading with the caption “Me asf at the, House Energy and Commerce Committee on 3/23/23.” TikTok removed the video at some point during the hearing.

TikTok played down the importance of Thursday’s hearing in a statement.

“Shou came prepared to answer questions from Congress, but, unfortunately, the day was dominated by political grandstanding that failed to acknowledge the real solutions already underway through Project Texas or productively address industry-wide issues of youth safety,” TikTok spokesperson Brooke Oberwetter said. “Also not mentioned today by members of the Committee: the livelihoods of the 5 million businesses on TikTok or the First Amendment implications of banning a platform loved by 150 million Americans.”

Clarity on China connections

Chew began his opening remarks by sharing details of his background and the countries to which he’s been connected. Chew said that he’s lived in Singapore, the United Kingdom and the U.S. Like him, his parents were born in Singapore and his wife was born in Virginia.

Notably, China wasn’t on the list.

But during the hearing, lawmakers drilled down into TikTok’s ties to China through its parent company.

While TikTok recently found a few allies on Capitol Hill, lawmakers on the House Energy and Commerce Committee did not display a similar level of sympathy. On Wednesday, Rep. Jamaal Bowman, D-N.Y., likened the focus on TikTok to a “red scare” over China, but many of his Democratic colleagues on Thursday seemed deeply concerned about security risks stemming from TikTok’s Chinese ownership.

Throughout the hearing, the lawmakers interrogated Chew about the ability of China-based ByteDance employees to access U.S. data, its failure to remove some dangerous or harmful posts and whether the company has interacted or aligned itself with the Chinese Communist Party.

Chew denied that TikTok shares data with the Chinese Communist Party. He said the company doesn’t have a policy to ask individual employees about their party affiliations in China, but pointed out that ByteDance CEO Liang Rubo is not a member of the party.

A key question for members of the committee seemed to be whether TikTok could uphold American values while being a subsidiary of a Chinese company. Lawmakers and intelligence officials fear that Chinese government officials could access U.S. user data from ByteDance through a Chinese law that allows officials to obtain company information for purported national security reasons.

“We do not trust TikTok will ever embrace American values — values for freedom, human rights, and innovation,” said Chair Cathy McMorris Rodgers, R.-Wash., who supports a TikTok ban, in prepared remarks.

“TikTok needs to be an American company with American values and end its ties to the Chinese Communist Party,” Rep. Darren Soto, R-Fla., later echoed.

Chew admitted that China-based employees can still access some U.S. data, but that new data will stop flowing once the firm finishes deleting it from its Singapore and Virginia-based servers as part of its Project Texas mitigation plan.

But several members said they think the project is still inadequate to protect American data.

“I don’t find what you suggested with Project Texas and this firewall that’s being suggested to whoever will be acceptable to me,” ranking member Frank Pallone, D-N.J., said. “I still believe that the Beijing communist government will still control and have the ability to influence what you do.”

It didn’t help that The Wall Street Journal reported that China said it would oppose a forced sale of TikTok, saying that it would involve an export of technology.

“Despite your assertions to the contrary, China certainly thinks it is in control of TikTok and its software,” said Rep. Michael Burgess, R-Texas, pointing to the news article.

Burgess and others also asked Chew about his preparation and whether ByteDance employees were involved in getting him ready for the hearing. Chew said TikTok’s team in D.C. helped him prep.

Later, Chew told Rep. Morgan Griffith, R-Va., that TikTok shares legal counsel with ByteDance. Griffith said under that arrangement, “there is no firewall, legally,” since those lawyers could share information with each other.

When Rep. Debbie Lesko, R-Ariz., asked if Beijing has persecuted the Uyghur minority group in the country, Chew sought to redirect the discussion back to TikTok.

“While it’s deeply concerning to hear about all accounts of human rights abuse, my role here is to explain what our platform does,” Chew said.

Later, when Rep. August Pfluger, R-Texas, asked if TikTok supports genocide, Chew again sought to bring the conversation back to app. Asked a second time, Chew answered that no, it does not.

Toward the end of the hearing, Chew expressed that his testimony was attempting to do something almost impossible. Referencing a report that members brought up from the University of Toronto-based Citizen Lab, Chew said, “Citizen Lab is saying that they cannot prove a negative, which is what I have been trying to do for the last four hours.”

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TikTok CEO Shou Zi Chew: Never had any discussions with Chinese government officials as CEO

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Tesla asks for $243 million verdict to be tossed in fatal Autopilot crash suit

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Tesla asks for 3 million verdict to be tossed in fatal Autopilot crash suit

Dillon Angulo, 33, looks at a roadside memorial sign reading “Drive Safely In Memory Naibel Benavidez” next to the site of a car crash where a Tesla driver using Autopilot killed her, and left him catastrophically injured in 2019, on Aug. 12, 2025, in Key Largo, Florida.

Eva Marie Uzcategui | The Washington Post | Getty Images

Tesla has filed a motion to appeal the verdict in a product liability and wrongful death lawsuit that could cost the company $242.5 million if it is not reduced or overturned.

Elon Musk‘s automaker has asked for the verdict to be tossed or for a new trial in Florida’s Southern district court.

Gibson Dunn, which is representing Tesla in the appeal, argued that compensatory damages in the case should be steeply reduced from $129 million to $69 million at most. That would result in Tesla having to pay a $23 million award if the prior verdict holding the company partially liable for the crash stands up.

The firm also argued that punitive damages should be eliminated or reduced to, at most, three times compensatory damages due to a statutory cap in the state of Florida.

The suit focused on a fatal crash that occurred in 2019 in Key Largo, Florida, in which George McGee was driving his Tesla Model S sedan while using the company’s Enhanced Autopilot, a partially automated driving system.

While driving, McGee dropped his mobile phone and scrambled to pick it up. He said during the trial that he believed Enhanced Autopilot would brake if an obstacle was in the way.

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McGee’s Model S accelerated through an intersection at just over 60 miles per hour, hitting a nearby empty parked car and its owners, who were standing on the other side of their vehicle.

The collision killed 22-year-old Naibel Benavides and severely injured her boyfriend, Dillon Angulo.

A jury in a Miami federal court earlier this month said that Tesla should compensate the family of the deceased and the injured survivor, paying a $242.5 million portion of a total $329 million in damages that they decided were appropriate.

In their motion to appeal, Tesla’s lawyers argue that the Model S vehicle had no design defects, and that even alleged design defects could not be blamed for the crash, which they say was caused entirely by the driver.

“For as long as drivers remain at the wheel, any safety feature may embolden a few reckless drivers while enhancing safety for countless others,” the appeal states. “Holding Tesla liable for providing drivers with advanced safety features just because a reckless driver overrode them cannot be reconciled with Florida law.”

Tesla did not respond to a request for additional comment.

Brett Schreiber, lead trial counsel for the plaintiffs in this case, said in a statement that he believes the court will uphold the prior verdict, which should not be seen as “an indictment of the autonomous vehicle industry, but of Tesla’s reckless and unsafe development and deployment of its Autopilot system.”  

“The jury heard all the facts and came to the right conclusion that this was a case of shared responsibility but that does not discount the integral role Autopilot and the company’s misrepresentations of its capabilities played in the crash,” he said.

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Ambarella stock rips 20% higher after earnings as AI demand boosts guidance

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Ambarella stock rips 20% higher after earnings as AI demand boosts guidance

Thomas Fuller | SOPA Images | Lightrocket | Getty Images

Ambarella stock roared 20% higher Friday as the chip designer reported better-than-expected second-quarter results and issued strong guidance.

Here’s how the company did compared to LSEG expectations:

  • Earnings: 15 cents per share adj. vs 5 cents per share expected
  • Revenue: $96 million vs $90 million expected

Ambarella, which is known for its system-on-chip semiconductors and software used for edge artificial intelligence, said it expects third-quarter revenue between $100 million and $108 million, beating the LSEG estimate of $91 million.

The company boosted its fiscal year revenue growth outlook to a range of 31-35%, to $379 million at the midpoint, which topped the $350 million expected by LSEG.

“After a multi-year period of significant edge AI R&D investment, our broad product portfolio enable us to address a rising breadth of edge AI applications,” CEO Fermi Wang said in a call with analysts Thursday.

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Wang singled out strength in “portable video, robotic aerial drones and edge infrastructure.”

Edge computing refers to the direct processing and storing of data at the device level instead of those actions being handled remotely in the cloud at a data center.

Ambarella had a net loss of $20 million, a loss of 47 cents per share in the second quarter. That narrowed from the same quarter a year ago, when the company had a net loss of $35 million, a loss of 85 cents per share.

The company said stock-based compensation and the amortization of acquisition-related costs weighed on earnings.

In June, Bloomberg reported that the company was considering a sale and had held talks with banks. Shares climbed 20% higher on the news.

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Marvell stock slumps 16% after data center revenue, forecast disappoint

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Marvell stock slumps 16% after data center revenue, forecast disappoint

Marvell Technology Group Ltd. headquarters in Santa Clara, California, US, on Friday, Sept. 6, 2024.

David Paul Morris | Bloomberg | Getty Images

Shares of Marvell Technology plunged 15% on Friday after the artificial intelligence chipmaker’s data center revenue fell short of estimates and it gave lackluster guidance for the current quarter.

Here’s how the company did in comparison with LSEG consensus:

  • Earnings per share: 67 cents adjusted vs. 66 cents expected
  • Revenue: $2.01 billion vs. $2.01 billion expected

Revenue jumped 58% from a year ago in the fiscal second quarter that ended Aug. 2, a record for the company that was fueled in part by “strong AI demand” for its custom silicon and electro-optics products, Marvell CEO Matt Murphy said in a statement.

The company had net income of $194.8 million, or 22 cents per share, compared with a net loss of $193.3 million, a loss of 22 cents per share, during the same period last year.

For the fiscal third quarter, the company called for revenue to be $2.06 billion, plus or minus 5%. That was slightly below the $2.11 billion forecast by analysts, according to LSEG.

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Marvell is known for creating customized chips and hardware, which it offers to cloud providers such as Amazon and Microsoft.

Sales in its data center segment reached $1.49 billion during the quarter, which fell short of Wall Street’s projected $1.51 billion, according to StreetAccount.

On a conference call with investors, Murphy said the company expects “overall data center revenue in Q3 to be flat sequentially,” which he attributed to nonlinear growth in its custom AI chips business. Fourth-quarter growth is expected to be “substantially stronger” than the third quarter, Murphy said.

He added that “lumpiness” of the guidance is normal as large hyperscalers build out infrastructure.

Still, some investors were hoping for greater clarity around the company’s pipeline of new customers.

“Without this, we find it very difficult underwriting the company’s 20% data center market share target,” Cantor analysts wrote in a Thursday note to clients. “Thus, we wait for more bottoms up granularity before potentially turning more positive.”

Analysts at Bank of America downgraded Marvell’s stock to neutral from buy on Friday and lowered their price target to $78 per share from $90, partly on concerns around the company’s AI growth prospects “in the near/medium term.”

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