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Facebook co-founder and CEO Mark Zuckerberg testifies before the House Financial Services Committee in the Rayburn House Office Building on Capitol Hill October 23, 2019 in Washington, DC. Zuckerberg testified about Facebook’s proposed cryptocurrency Libra, how his company will handle false and misleading information by political leaders during the 2020 campaign and how it handles its users’ data and privacy.
Chip Somodevilla | Getty Images News | Getty Images

Facebook CEO Mark Zuckerberg came out swinging at the start of the company’s third-quarter earnings call Monday, defending its research on how its services affect users, following numerous press reports Monday based on documents leaked by a former employee.

“Good faith criticism helps us get better,” Zuckerberg said. “But my view is that what we are seeing is a coordinated effort to selectively use leaked documents to paint a false picture of our company. The reality is that we have an open culture, where we encourage discussion and research about our work so we can make progress on many complex issues that are not specific to just us.”

Zuckerberg said Facebook does this work “because we care about getting this right.”

The reports came from a consortium of 17 news outlets in the U.S. that were provided internal research by Frances Haugen, a former employee who also provided the documents to Congress and the Securities and Exchange Commission, seeking whistleblower status. They follow an earlier series based on the same documents by The Wall Street Journal, which prompted hearings in Congress and abroad.

The reports revealed that Facebook had been aware of the ways its own services could negatively impact some users’ mental health, push polarized recommendations to users and spread potentially dangerous misinformation. While Facebook has taken steps to make its platform safer on all of these counts, the company’s detractors say it hasn’t acted boldly or quickly enough.

A theme in Zuckerberg’s argument was that the problems Facebook experiences are a reflection of society.

“These issues aren’t primarily about social media,” Zuckerberg said. “That means that no matter what Facebook does, we’re never going to solve them on our own.”

He said polarization began rising in the U.S. “before I was born” while pointing to unspecified research finding that countries with similar social media use have seen stagnant or declining polarization.

He said Facebook often needs to choose between a host of trade-offs, such as providing encryption versus supporting law enforcement investigations.

“It makes a good sound bite to say that we don’t solve these impossible trade-offs because we’re just focused on making money, but the reality is these questions are not primarily about our business, but about balancing different difficult social values,” he said.

Zuckerberg said he has called for regulation so that companies like Facebook aren’t the ones that have to choose between those trade-offs.

He said he’s proud of the research Facebook has done and emphasized the company’s investments in safety and security measures.

But, he said, he worries the response to Facebook’s research could create negative incentives for other businesses to do similar work.

“I worry about the incentives that we are creating for other companies to be as introspective as we have been,” he said. “But I am committed to continuing this work because I believe it will be better for our community and our business over the long term.”

A new ‘North Star’

Toward the end of his opening statement, Zuckerberg announced a new strategic vision for the future of the platform. He said that rather than make Facebook a place that caters to the greatest number of people, it will now place a greater focus on young adults, ages 18-29.

“We are retooling our teams to make serving young adults their North Star, rather than optimizing for the larger number of older people,” Zuckerberg said. “Like everything, this will involve trade-offs in our product, and it will likely mean the rest of our community will grow more slowly than it otherwise would have. But it should also mean that our services become stronger for young adults.”

Zuckerberg said the shift would take “years, not months.”

That change and others Zuckerberg mentioned, including refreshing Facebook and Instagram to put an emphasis on video and leaning into its Reels short video product, would make the platform more similar to TikTok and go after an important part of its user base. Zuckerberg pointed to TikTok as one of the most formidable competitors it’s seen.

Facebook often brings up TikTok’s rapid growth when faced with questions about its own vast power, which is the subject of an antitrust complaint brought by the Federal Trade Commission. The FTC has accused Facebook of illegally maintaining a monopoly in the personal social networking space, in part through its acquisitions of Instagram and WhatsApp.

Several reports from the leaked documents showed Facebook has increasingly worried about the lack of engagement on its main platform among younger users, which would create an existential threat to its future. Still, the focus on young adults, rather than teens under 18, could ease pressure from lawmakers and others who have warned Facebook against making a version of its products for kids.

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Apple’s China iPhone sales grows for the first time in two years

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Apple's China iPhone sales grows for the first time in two years

People stand in front of an Apple store in Beijing, China, on April 9, 2025.

Tingshu Wang | Reuters

Apple iPhone sales in China rose in the second quarter of the year for the first time in two years, Counterpoint Research said, as the tech giant looks to turnaround its business in one of its most critical markets.

Sales of iPhones in China jumped 8% year-on-year in the three months to the end of June, according to Counterpoint Research. It’s the first time Apple has recorded growth in China since the second quarter of 2023.

Apple’s performance was boosted by promotions in May as Chinese e-commerce firms discounted Apple’s iPhone 16 models, its latest devices, Counterpoint said. The tech giant also increased trade-in prices for some iPhone.

“Apple’s adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,” Ethan Qi, associate director at Counterpoint said in a press release. The 618 shopping festival happens in China every June and e-commerce retailers offer heavy discounts.

Apple’s return to growth in China will be welcomed by investors who have seen the company’s stock fall around 15% this year as it faces a number of headwinds.

U.S. President Donald Trump has threatened Apple with tariffs and urged CEO Tim Cook to manufacture iPhones in America, a move experts have said would be near-impossible. China has also been a headache for Apple since Huawei, whose smartphone business was crippled by U.S. sanctions, made a comeback in late 2023 with the release of a new phone containing a more advanced chip that many had thought would be difficult for China to produce.

Since then, Huawei has aggressively launched devices in China and has even begun dipping its toe back into international markets. The Chinese tech giant has found success eating away at some of Apple’s market share in China.

Huawei’s sales rose 12% year-on-year in the second-quarter, according to Counterpoint. The firm was the biggest player in China by market share in the second quarter, followed by Vivo and then Apple in third place.

“Huawei is still riding high on core user loyalty as they replace their old phones for new Huawei releases,” Counterpoint Senior Analyst Ivan Lam said.

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Like Google, China’s biggest search player Baidu is beefing up its product with AI to fight rivals

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Like Google, China's biggest search player Baidu is beefing up its product with AI to fight rivals

Pictured here is the Ernie bot mobile interface, with the Baidu search engine home page in the background.

Future Publishing | Future Publishing | Getty Images

Chinese tech giant Baidu has bolstered its core search platform with artificial intelligence in the biggest overhaul of the product in 10 years.

Analysts told CNBC the move was a bid to keep ahead of fast-moving rivals like DeepSeek, rather than traditional search players.

“There has been some small pressure on the search business but the focus on AI and Ernie Bot is a key move ahead,” Dan Ives, global head of tech research at Wedbush Securities, told CNBC by email. Ernie Bot is Baidu’s AI chatbot.

“Baidu is not waiting around to watch the paint dry, full steam ahead on AI,” he added.

Baidu AI overhaul

Baidu is China’s biggest search engine, but — as is also being seen by Google — the search market is being disrupted.

Users are flocking instead to AI services such as ChatGPT or DeepSeek, which shocked the world this year with its advanced model it claimed was created at a fraction of the cost of rivals.

But Kai Wang, Asia equity market strategist at Morningstar, also noted that short video platforms such as Douyin and Kuaishou are also getting into AI search and piling pressure on Baidu.

To counter this, Baidu made some major changes to its core search product:

  • Users can now enter more than a thousand characters in the search box, versus 28 previously;
  • Questions can be asked in a more direct and conversational manner, mirroring how people now use chatbots;
  • Users can ask questions through voice but also prompt the seach engine with pictures and files;
  • Baidu has integrated its AI chatbot features, which enable users to generate photos, text and videos, into the product.

“This is more aligned with how people use ChatGPT and DeepSeek in terms of how they look for answers,” Wang said.

Outside of China, Google has also been looking to enhance its core search product with AI, highlighting how search has been under pressure from the burgeoning technology.

Baidu on the offense

Baidu was one of China’s first movers when it came to AI, releasing its first models and ChatGPT-style product Ernie Bot to the public in 2023. Since then, it has aggressively launched updated AI models.

However, the Beijing-headquartered company has also faced intense competition from fellow tech giants like Alibaba and Tencent, as well as upstarts such as DeepSeek.

These companies have also been launching new models and infusing AI into their products and Baidu’s stock has fallen behind as a result. Baidu shares have risen around 2.5% this year, versus a 30.5% surge for Alibaba and a 20% rise for Tencent.

“This is a defensive and offensive move … Baidu needs to be aggressive and perception-wise show they are not the little brother to Tencent on the AI front,” Wedbush Securities’ Ives added.

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AI voice startup ElevenLabs pushes global expansion as it gears up for an IPO

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AI voice startup ElevenLabs pushes global expansion as it gears up for an IPO

Founded in 2022, ElevenLabs is an AI voice generation startup based in London. It competes with the likes of Speechmatics and Hume AI.

Sopa Images | Lightrocket | Getty Images

LONDON — ElevenLabs, a London-based startup that specializes in generating synthetic voices through artificial intelligence, has revealed plans to be IPO-ready within five years.

The company told CNBC it is targeting major global expansion as it prepares for an initial public offering.

“We expect to build more hubs in Europe, Asia and South America, and just keep scaling,” Mati Staniszewski, ElevenLabs’ CEO and co-founder, told CNBC in an interview at the firm’s London office.

He identified Paris, Singapore, Brazil and Mexico as potential new locations. London is currently ElevenLabs’ biggest office, followed by New York, Warsaw, San Francisco, Japan, India and Bangalore.

Staniszewski said the eventual aim is to get the company ready for an IPO in the next five years.

“From a commercial standpoint, we would like to be ready for an IPO in that time,” he said. “If the market is right, we would like to create a public company … that’s going to be here for the next generation.”

Undecided on location

Fundraising plans

ElevenLabs was valued at $3.3 billion following a recent $180 million funding round. The company is backed by the likes of Andreessen Horowitz, Sequoia Capital and ICONIQ Growth, as well as corporate names like Salesforce and Deutsche Telekom.

Staniszewski said his startup was open to raising more money from VCs, but it would depend on whether it sees a valid business need, like scaling further in other markets. “The way we try to raise is very much like, if there’s a bet we want to take, to accelerate that bet [we will] take the money,” he said.

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