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Mark Zuckerberg, CEO of Meta testifies before the Senate Judiciary Committee at the Dirksen Senate Office Building on January 31, 2024 in Washington, DC.

Alex Wong | Getty Images

Facebook parent company Meta on Thursday was hit with a major investigation from the European Union into alleged breaches of the bloc’s strict online content law over child safety risks.

The European Commission, the EU’s executive body, said in a statement that it is investigating whether the social media giant’s Facebook and Instagram platforms “may stimulate behavioural addictions in children, as well as create so-called ‘rabbit-hole effects’.”

The Commission added that it is concerned about age verifications on Meta’s platforms, as well as privacy risks linked to the company’s recommendation algorithms.

“We want young people to have safe, age-appropriate experiences online and have spent a decade developing more than 50 tools and policies designed to protect them,” a Meta spokesperson told CNBC by email.

“This is a challenge the whole industry is facing, and we look forward to sharing details of our work with the European Commission.”

The Commission said that its decision to initiate an investigation comes of the back of a preliminary analysis of risk assessment report provided by Meta in September 2023.

Thierry Breton, the EU’s commissioner for internal market, said in a statement that the regulator is “not convinced [that Meta] has done enough to comply with the DSA obligations to mitigate the risks of negative effects to the physical and mental health of young Europeans on its platforms.”

The EU said it will carry out an in-depth investigation into Meta’s child protection measures “as a matter of priority.” The bloc can continue to gather evidence via requests for information, interviews, or inspections.

The initiation of a DSA probe allows the EU to take further enforcement steps, including interim measures and non-compliance decisions, the Commission said. The Commission added it can also consider commitments made by Meta to remedy its concerns.

Meta and fellow U.S. tech giants have been increasingly finding themselves in the spotlight of EU scrutiny since the introduction of the bloc’s landmark Digital Services Act, a ground-breaking law from the European Commission seeking to tackle harmful content.

Under the EU’s DSA, companies can be fined up to 6% of their global annual revenues for violations. The bloc is yet to issue fines to any tech giants under its new law.

In December 2023, the EU opened infringement proceedings into X, the company previously known as Twitter, over suspected failure to combat content disinformation and manipulation.

The Commission is also investigating Meta over alleged infringements of the DSA related to its handling of election disinformation.

In April, the bloc launched a probe into the firm and said it’s concerned Meta hasn’t done enough to combat disinformation ahead of upcoming European Parliament elections.

The EU is not the only authority taking action against Meta over child safety concerns.

In the U.S., the attorney general of New Mexico is suing the firm over allegations that Facebook and Instagram enabled child sexual abuse, solicitation, and trafficking.

A Meta spokesperson at the time said that the company deploys “sophisticated technology” and takes other preventive steps to root out predators.

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Trump signs executive order for single national AI regulation framework, limiting power of states

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Trump signs executive order for single national AI regulation framework, limiting power of states

U.S. President Donald Trump looks on, as he signs an executive order on AI in the Oval Office at the White House in Washington, D.C., U.S. Dec. 11, 2025.

Al Drago | Reuters

President Donald Trump signed an executive order Thursday issuing a single regulation framework for artificial intelligence, undermining the power of individual states.

The Trump administration, with the aid of AI and crypto czar David Sacks, has been pursuing a path that would allow federal rules to preempt state regulations on AI, a move meant to keep big Democratic-led states like California and New York from exerting their control over the growing industry.

There has been a growing debate over AI, specifically related to an increasing number of individual state laws that could conflict with a federal standard.

The move marks a win for tech companies, who’ve argued against states rights when it comes to regulation on artificial intelligence. 

AI companies have been ramping up lobbying, opening offices close to the Capitol and launching campaigns through a super PAC with at least $100 million to spend on the midterm elections in 2026. 

States across the country are legislating on AI. States like Colorado and California have proposed bills requiring risk assessments and disclosure related to AI. OpenAI, Andreessen Horowitz and Google are among the company lobbying to block state laws that regulate AI, arguing a patchwork of regulation across the country would prevent the U.S. ability to compete in the global AI race. 

A draft version of a proposed executive order surfaced last month, proposing a single federal standard on AI “instead of a patchwork of 50 State Regulatory Regimes.”

Sacks and fellow tech investor and podcaster Chamath Palihapitiya stood beside Trump during the signing. Following Trump’s election, Sacks was appointed as the White House AI and “Crypto Czar” to guide administration policy, while Palihapitiya maintains high-level access to White House leadership as a vocal supporter.

This is breaking news. Please check back for updates.

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Palantir sues former employees, says Percepta AI CEO set out to ‘pillage’ top developers

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Palantir sues former employees, says Percepta AI CEO set out to 'pillage' top developers

Palantir Technologies CEO Alex Karp attends the Pennsylvania Energy and Innovation Summit on the campus of Carnegie Mellon University in Pittsburgh, Pennsylvania, July 15, 2025.

Andrew Caballero-reynolds | Afp | Getty Images

Palantir expanded its lawsuit against two former employees on Thursday to include the CEO of their new artificial intelligence startup, Percepta AI.

In the suit, Palantir alleged that Percepta CEO and co-founder Hirsh Jain, co-founder Radha Jain, and a third employee, Joanna Cohen, violated their non-solicitation agreements, hiring top talent to create a competitive business.

Palantir and Percepta didn’t immediately respond to CNBC’s request for comment.

The three defendants are accused of attempting to “poach” executives and developers from their former company and “plunder Palantir’s valuable intellectual property.”

Cohen and Radha Jain, who were named in the original lawsuit filed in October, were previously senior engineers at Palantir. Hirsh Jain, an executive responsible for the company’s healthcare portfolio, was added as another defendant in the latest complaint.

Palantir said the defendants were “entrusted” with the company’s “crown jewels,” including source code, customer workflows and proprietary customer engagement strategies.

The former employees “brazenly disregarded their contractual and legal commitments to Palantir and instead chose a path of deception and unjust competition,” the plaintiffs said in the document, which was filed in the U.S. District Court for the Southern District of New York.

Cohen and Radha Jain denied the initial allegations in a November filing, and agreed to stop working for Percepta during the proceedings.

The suit accused Hirsh Jain, who resigned from Palantir in August 2024, of an “aggressive campaign” to recruit other employees to join Percepta, and said the startup has already hired at least 10 former Palantir employees.

An alleged message written by Hirsh Jain in November 2024 read, “I’m down to pillage the best devs at palantir when they’re at their maximum richness.”

The complaint says Rhada Jain wrote another message saying, “God thinking about poaching is so fun.”

Palantir, which was co-founded by Peter Thiel, CEO Alex Karp and others, builds analytics software for companies and government agencies, including the U.S. military. The company’s stock price has soared more than tenfold since the end of 2023, lifting its market cap close to $450 billion.

Palantir also accused Cohen of sending herself highly confidential documents shortly after announcing her resignation from the company in March. Cohen allegedly took photos of sensitive information, the suit said, and downloaded the files onto her personal phone.

“At Percepta, they seek to succeed not through old-fashioned ingenuity and competition, but through outright theft and deceit,” Palantir said in the filing.

Among other things, Palantir is asking for the defendants to be forced to return any confidential information in their possession, and to avoid working at Percepta or venture backer General Catalyst for 12 months from the time of an order.

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Trump ‘sells out’ U.S. national security with Nvidia chip sales to China, Sen. Warren says

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Trump 'sells out' U.S. national security with Nvidia chip sales to China, Sen. Warren says

Sen. Elizabeth Warren, D-Mass., speaks during a Senate Banking, Housing and Urban Affairs Committee confirmation hearing on President Donald Trump’s nominees to lead the National Economic Council, Consumer Financial Protection Bureau and Federal Housing Finance Agency, on Capitol Hill in Washington, Feb. 27, 2025.

Annabelle Gordon | Reuters

President Donald Trump‘s decision to let Nvidia sell its advanced H200 artificial intelligence chips to China “sells out American national security,” Sen. Elizabeth Warren, D-Mass., said Thursday.

Warren also reiterated her call for Nvidia CEO Jensen Huang to testify before Congress about the agreement, along with Commerce Secretary Howard Lutnick.

The senator’s fiery remarks on the Senate floor came three days after Trump announced on social media that the U.S. semiconductor giant Nvidia could sell the chips to “approved customers” in China, so long as the U.S. gets a 25% cut of the revenues.

The announcement drew concerns both from Democrats and some of Trump’s Republican allies, who have been vocal about protecting America’s hardware advantage over China in the race to AI superiority.

Warren, in Thursday’s remarks, urged Congress to pass bipartisan legislation that “reins in this administration” by imposing new chip export restrictions. Critics of the bill say it could undermine U.S. chipmakers’ competitiveness.

The Trump administration knows that China gaining access to the chips, which have previously been subject to export restrictions, “poses a serious threat to our technological leadership and national security,” Warren said on the Senate floor.

She noted that shortly before Trump announced his decision on the H200 chips on Monday, the Department of Justice touted a crackdown touted a crackdown on a “major China-linked AI tech smuggling network.”

Sen. Elizabeth Warren: Economy and Fed still have a lot of 'red flashing lights'

“So why did the President make this bad deal that sells out the American economy and sells out American national security?” she asked. “It’s simple: In the Trump administration, money talks.”

“Mr. Huang understands that in this administration, being able to cozy up to Donald Trump might be the most important corporate CEO skill of all,” Warren said.

She pointed to Huang attending a $1 million-per-plate dinner at Trump’s Florida home Mar-a-Lago, and Nvidia’s later donations to the president’s under-construction White House ballroom.

“Those are just the most obvious possible reasons to cut this deal,” Warren said, “and who knows what else Mr. Huang might have done behind closed doors to persuade President Trump and Secretary Lutnick into making this dangerous concession.”

CNBC has reached out to Nvidia for comment on the senator’s remarks.

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