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  • Going to food banks. Canceling after-school activities. How federal workers will manage a government shutdown | CNN Politics

    Going to food banks. Canceling after-school activities. How federal workers will manage a government shutdown | CNN Politics

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    CNN
     — 

    The last time the federal government shut down five years ago, Jesse Santiago found himself standing in line at his local food bank, rationing medication and falling behind on his mortgage payments, which ultimately cost him his home.

    Santiago, who has worked as a Transportation Security Administration officer at Houston’s airport since 2002, likes his job and takes pride in keeping Americans safe when they fly. But he’s outraged that Congress once again is on the brink of letting the federal government shut down, throwing him and his fellow federal workers into financial and emotional chaos.

    “Imagine serving the American people only to have to beg for food,” said Santiago, who lives with his husband in Cleveland, Texas, and has started stocking up on canned beans and other nonperishable food in case this impasse drags out. “I refuse to stand in food lines again while working for the federal government.”

    Santiago is among several million federal employees who will stop being paid if lawmakers cannot agree on funding the federal agencies by the start of the coming fiscal year on October 1. Some, like Santiago, are considered essential workers and have to go to work regardless. Others will be furloughed until Congress passes a spending package, which took more than a month during the 2018-19 shutdown.

    Hundreds of people wrote to CNN to express their views about the looming shutdown. Several said they were concerned about taking trips to national parks, including a bride-to-be who is holding her wedding at one in mid-October, while many senior citizens said they were terrified they wouldn’t get their monthly Social Security checks. (In fact, Social Security payments continue during shutdowns.)

    Some charitable organizations are already offering to help federal workers get through their payless period. Earlier this week, chef Jose Andres said his World Central Kitchen restaurants in Washington, DC, would provide food to federal employees during a shutdown, as they did during the previous impasse.

    Among the hardest hit by government shutdowns are federal employees, who won’t get paid until Congress funds their agencies, and federal contractors, who don’t receive back pay. Many wrote of the toll the last shutdown – the longest on record – took on them and their concerns that they and their families will likely have to go through this again.

    For Carrie Martin, who works in the finance department of the National Institutes of Health, potentially losing her paycheck comes at a tough time. Not only is she shelling out more for groceries, rent and other essentials because of inflation, but she’ll have to start making student loan payments of a little more than $700 a month in October.

    “Not knowing when I will get my next paycheck is very stressful considering I am living paycheck to paycheck,” said Martin, who earned a master’s in health administration degree from George Washington University this spring. “Adding student loans back into my bills is making it 10 times worse.”

    Plus, she said it’s difficult to work under such uncertain conditions. She and her colleagues have been putting in extra hours preparing for the end of the current fiscal year and the start of the next one.

    “Preparing for something that may not happen takes a lot of energy out of you,” said Martin, who is also still adjusting to living on one income after her wife passed away last year.

    Other federal workers are already planning to cut back their spending.

    Nicole, a federal law enforcement officer in southern Missouri, said she won’t be able to throw a party for her 6-year-old son whose birthday is in early October. She had hoped to invite a dozen or so children since he just entered kindergarten and is starting to make friends. Instead, her son will just have cake and presents at home with his parents, grandparents and younger brother.

    “I’ll probably feel more sad than he will,” said Nicole, who did not want her last name used because of the nature of her job. “I don’t want to tap into my savings and not pay my bills.”

    Even though her husband will continue to be paid since he works in the restaurant industry, Nicole said the family will have to make sacrifices, including not signing up her older son for after-school activities, such as basketball and painting. And they’ll skip going to fall festivals in their area.

    During the last shutdown, they bought fewer groceries, reduced their cable plan and paid a decent amount of late fees on bills. Plus, they had to take out a loan from their local credit union, though at least they didn’t have to pay interest on it.

    “That was probably one of the worst things we’ve been through,” said Nicole, who still has to report to work during a shutdown.

    The stress from the 2013 impasse prompted Rob, who was a federal police officer in Washington, DC, at the time, to leave federal service. He had to work long shifts without knowing when he’d see his next paycheck.

    A decade later, Rob decided to return to the federal workforce so he could get a better-paying job than the one he has working security at a local retailer. He is currently behind on his rent and car payments and depends on food stamps to feed his family, including his 4-year-old daughter.

    Just last week, he accepted a position as a police officer at a Veterans Health Administration hospital with a tentative start date of November 5. But if the government shuts down, he fears his paperwork and medical reviews will be delayed so he’ll have to wait longer to begin the job he desperately needs.

    “This was a light at the end of the tunnel for us,” said Rob, who now lives outside of Boston and did not want his last name used for fear of losing his job offer. “I just want to work. I just want to serve my country, do my job.”

    Many federal contractors, meanwhile, are gearing up to give up their paychecks completely until Congress resolves the impasse.

    Theresa Springer of Pittsburgh is a senior consultant for a small management consulting firm that works with various federal agencies. During the last shutdown, she and her coworkers were able to take paid time off, so her income didn’t suffer even though it cost her employer hundreds of thousands of dollars. The company is making the same offer again this year, giving her around two weeks of breathing room before she stops being paid.

    Though Springer said she has the savings to get her through, she will have to watch her spending and may have to delay some purchases if there is a shutdown. Regardless, she’s irritated at lawmakers’ inability to govern and thinks they should forgo their paychecks.

    “My emergency fund is for emergencies, not for the federal government not being able to get their act together,” she said.

    The situation is also tough for small businesses that depend on federal employees, like Sue Doyle’s Home Sweet Home Cleaning Services in Columbia, Maryland. Between 10% and 20% of her clients work for the government, and many cancel their appointments during shutdowns.

    During shutdowns, Sue Doyle temporarily loses many of her clients who work for the federal government.

    Not only does that hurt her income, it cuts into the earnings of her seven employees. Doyle tries not to lay anyone off, opting instead to reduce all of their schedules. While most understand, they are frustrated because they also have bills to pay, she said.

    “A shutdown has a trickle-down consequence,” said Doyle, who is already talking to a bank about a business loan so she can cover her expenses during the impasse. “Hopefully, my employees won’t have more than one day off a week.”

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  • Biden says border walls don’t work as administration bypasses laws to build more barriers in South Texas | CNN Politics

    Biden says border walls don’t work as administration bypasses laws to build more barriers in South Texas | CNN Politics

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    Washington
    CNN
     — 

    President Joe Biden said Thursday that he doesn’t believe border walls work, even as his administration said it will waive 26 laws to build additional border barriers in the Rio Grande Valley amid heightened political pressure over migration.

    According to a notice posted to the Federal Register Wednesday, construction of the wall will be paid for using already appropriated funds earmarked specifically for physical border barriers. The administration was under a deadline to use them or lose them. But the move comes at a time when a new surge of migrants is straining federal and local resources and placing heavy political pressure on the Biden administration to address a sprawling crisis, and the notice cited “high illegal entry.”

    Biden – who, as a candidate, vowed that there will “not be another foot” of border wall constructed on his watch – defended the decision to reporters Thursday, saying that he tried to get the money appropriated for other purposes but was unsuccessful.

    “I’ll answer one question on the border wall: The border wall – the money was appropriated for the border wall. I tried to get them to reappropriate it, to redirect that money. They didn’t, they wouldn’t. And in the meantime, there’s nothing under the law other than they have to use the money for what it was appropriated. I can’t stop that,” Biden told reporters in the Oval Office.

    Asked whether he believes the border wall works, Biden answered, “No.”

    Homeland Security Secretary Alejandro Mayorkas stated forcefully that there had been no change to the administration’s policy at a news conference in Mexico City on Thursday.

    “I want to address today’s reporting relating to a border wall and be absolutely clear: There is no new administration policy with respect to the border wall,” Mayorkas said. “Allow me to repeat that: There is no new administration policy with respect to the border wall.”

    “We have repeatedly asked Congress to rescind this money, but it has not done so, and we are compelled to follow the law,” he said.

    Border Patrol reported nearly 300,000 encounters in the Rio Grande Valley sector between last October and August, according to federal data. Last month, Border Patrol apprehended more than 200,000 migrants crossing the US-Mexico border, the highest total this year.

    Biden has been plagued by issues on the border since his first months in office, when the US faced a surge of unaccompanied migrant children that caught officials flatfooted. Over the last two years, his administration has continued to face fierce pushback from Republicans – and at times, Democrats – over his immigration policies.

    But a new surge of migrants has placed additional pressure on federal resources and tested Biden’s latest border policies only months after going into place, prompting fresh criticism from Republicans and concern within the administration over a politically delicate issue.

    Migration along the southern border has been a relentless focus of the Republican presidential primary field and conservative media, and leading Democrats, including the mayors of New York and Chicago, have begun publicly demanding stronger efforts by the federal government to provide resources to accommodate arrivals.

    The Department of Homeland Security had concluded “it is necessary to waive certain laws, regulations, and other legal requirements in order to ensure the expeditious construction of barriers and roads” in Starr County, Texas, along the US border with Mexico, Homeland Security Secretary Alejandro Mayorkas said in the filing posted in the US Federal Registry.

    “There is presently an acute and immediate need to construct physical barriers and roads in the vicinity of the border of the United States in order to prevent unlawful entries into the United States in the project areas,” Mayorkas said in the notice.

    Construction of the wall will be paid for through a 2019 appropriations bill that funneled money specifically to a “border barrier” in the Rio Grande Valley, and according to Mayorkas, “DHS is required to use those funds for their appropriated purpose.” The funds needed to be spent by the end of fiscal year 2023, prompting the administration to choose to move forward this year with construction in south Texas, according to a source familiar.

    US Customs and Border Protection had previously announced plans to design and construct up to 20 miles of new border barrier systems in Starr County, including light poles and lighting, gates, cameras and access roads, among other systems. CBP sought public input between August and September, according to the agency.

    Among the laws the Biden administration is bypassing to build the wall are several of the same statutes the administration has in the past moved to protect, including: the National Environmental Policy Act, the Endangered Species Act, the Clean Water Act and the Clean Air Act.

    A CBP spokesperson said the agency “remains committed to protecting the nation’s cultural and natural resources” while implementing “sound environmental practices” to build the border barriers.

    Migrant crossings at the US-Mexico border are expected to remain high in the near term, a senior US Customs and Border Protection official recently told CNN, though additional commitments from Mexico are expected to help eventually drive down numbers.

    This week, Mayorkas, Secretary of State Antony Blinken, Attorney General Merrick Garland and White House Homeland Security adviser Dr. Liz Sherwood-Randall will meet with their Mexican counterparts in Mexico City for annual security talks.

    Migration is expected to be a topic of discussion. Senior administration officials maintain that the US has been in regular touch with Mexico over the situation at the US southern border, including commitments to shore up enforcement.

    Mexican President Andres Manuel Lopez Obrador said constructing a new border wall is a “regression” that won’t resolve the immigration problem. During his daily press conference, he criticized “right-wing Republicans” for pressing the immigration and drug trafficking problem for political purposes.

    “So, they are acting very irresponsibly, and they are putting very hard pressure on the president, who will always count on our support,” Lopez Obrador said. “But that authorization for the construction of the wall is a setback. Because that doesn’t solve the problem, that doesn’t solve the problem. The causes must be addressed.”

    This story has been updated with additional information.

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  • South Korean firms get indefinite waiver on US chip gear supplies to China | CNN Business

    South Korean firms get indefinite waiver on US chip gear supplies to China | CNN Business

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    Seoul
    Reuters
     — 

    Samsung Electronics and SK Hynix will be allowed to supply US chip equipment to their China factories indefinitely without separate US approvals, South Korea’s presidential office and the companies said on Monday.

    The United States had been expected to extend a waiver granted to the South Korean chipmakers on a requirement for licenses to bring US chip equipment into China.

    “Uncertainties about South Korean semiconductor firms’ operations and investments in China have been greatly eased; they will be able to calmly seek long-term global management strategies,” said Choi Sang-mok, senior presidential secretary for economic affairs.

    The United States has already notified Samsung and SK Hynix of the decision, indicating that it is in effect, Choi said.

    The US Department of Commerce is updating its “validated end user” list, denoting which entities can receive exports of which technology, to allow Samsung and SK Hynix to keep supplying certain US chipmaking tools to their China factories, the presidential office said.

    Once included in the list, there is no need to obtain permission for separate export cases.

    Samsung and SK Hynix, the world’s largest and second-largest memory chipmakers, have invested billions of dollars in their chip production facilities in China and welcomed the move.

    “Through close coordination with relevant governments, uncertainties related to the operation of our semiconductor manufacturing lines in China have been significantly removed,” Samsung said in a statement.

    SK Hynix said: “We welcome the US government’s decision to extend a waiver with regard to the export control regulations. We believe the decision will contribute to the stabilization of the global semiconductor supply chain.”

    Samsung Electronics makes about 40% of its NAND flash chips at its plant in Xian, while SK Hynix makes about 40% of its DRAM chips in Wuxi and 20% of its NAND flash chips in Dalian.

    The companies together controlled nearly 70% of the global DRAM market and 50% of the NAND flash market as of end-June, data from TrendForce showed.

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  • Trump’s turn against Israel offers stark reminder of what his diplomacy looks like | CNN Politics

    Trump’s turn against Israel offers stark reminder of what his diplomacy looks like | CNN Politics

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    CNN
     — 

    Donald Trump’s inflammatory and artless comments about Hamas’ horror in Israel emphasize the defining characteristic of his attitude toward foreign policy and his entire political world view: It’s all about him.

    Trump criticized Israeli Prime Minister Benjamin Netanyahu, lauded Hezbollah militants as “very smart” and sought political gain from the attacks that killed 1,200 people by claiming that if the last election was not “rigged,” he’d be the American president and they’d never have happened.

    The ex-president openly admitted a grievance against Netanyahu, complaining he had pulled out at the last minute from joining the US air attack that assassinated Iranian intelligence chief Qasem Soleimani in Iraq in 2020. Trump had previously fumed over the Israeli leader’s perceived disloyalty in recognizing he lost the election.

    Trump is now a private citizen, and it’s possible he wouldn’t have addressed the situation in the same way if he were president – although there were multiple examples of his tone deafness and indiscretion when he was in the White House. But he’s also the 2024 Republican front-runner for president and his statements are therefore scrutinized for clues over how he would behave in office. His latest comments add to plentiful evidence that a second Trump term would be even more riotous at home and globally disruptive than his first four years in power.

    The former president’s remarks also offered an opening to his GOP rivals, who accused him of behavior unsuitable for a potential commander in chief after an ally came under attack amid horrendous scenes of carnage in which some Americans were also killed. Some bemoaned his apparent admiration for Hezbollah, a Lebanese militia group that is hostile toward Israel.

    “He’s a fool. Only a fool would make those kinds of comments,” former New Jersey Gov. Chris Christie, who has rooted his campaign in criticizing Trump’s suitability for office, told CNN.

    “Only a fool would give comments that could give aid and comfort to Israel’s adversary in this situation,” Christie continued. “This is someone who cares, not about the American people, not about the people of Israel, but he cares about one person and one person only, the person he sees in the mirror when he wakes up in the morning.”

    The former president tried to defuse the growing controversy on Thursday evening, releasing a statement in which he insisted that “there was no better friend or ally of Israel” than him. He accused President Joe Biden of weakness and incompetence. “With President Trump back in office, Israel, and everyone else, will be safe again!” he said. The former president was continuing the clean-up on Friday on his Truth Social platform, praising what he said was the “skill and determination” of the Israel Defense Forces and later posting “#IStandWithBibi.”

    Trump’s original grievance-based analysis reflects a transactional, unorthodox approach to foreign policy that often prioritizes his own personal goals over a standard understanding of the national interest. It also highlighted a contrast with his potential 2024 election opponent. Biden reacted to the attack by using all of the tools of traditional statesmanship, including rhetoric, personal behind-the-scenes contacts with key foreign leaders and by mobilizing allies. Like Trump, Biden has had a personal and political beef with Netanyahu – but shelved his differences with him weeks before the attack and has been in constant contact with the prime minister since it occurred.

    Biden is seeking to strike a balance. He has shown the most ardent support for Israel of any recent US president and acknowledged its desire to retaliate and reestablish its sense of security after the most shocking penetration of its borders and national psyche in 50 years. But Biden is also sending private and public signals to Netanyahu that Israel’s response should not infringe the laws of war and that he should consider the humanitarian consequences of an invasion of Gaza, as he seeks to prevent the war escalating into a dangerous regional conflict that could draw in the US.

    Biden’s opponents have every right to critique his foreign policies and to ask whether a hands-off approach to the Israeli-Palestinian conflict meant his administration dismissed the threat from Hamas. Critics also argue his attempts to open dialogue with Iran, a key sponsor of the militant group, emboldened the Islamic Republic and threatened Israel’s security. But Biden is also forging a contrast of temperament and approach with Trump that will be at the center of his campaign’s narrative if the 2024 election is a rematch of 2020 and will boil down to this question to voters: Is Trump fit for the Oval Office?

    Trump said on Fox News on Wednesday that Netanyahu had been “hurt very badly” by the attacks. “He was not prepared, and Israel was not prepared,” the former president said. His comments were not necessarily wrong and the intelligence and political failures in Israel will be investigated after the war. But the timing and tone of criticism is questionable given that Israel, one of America’s closest allies, is suffering after a horrendous attack on civilians and is in need of support not political points scoring and second guessing. His willingness to trash Netanyahu, despite the Israeli leader’s considerable efforts to align himself politically with the ex-president, also shows how loyalty is usually a one-way street for Trump and those who he believes have crossed him are liable to get a public dressing down.

    Trump’s comments were not the first time he has appeared to seek a political benefit from his foreign policy and his positions on Israel especially. Last October, he complained that American Jews were not sufficiently grateful to him for actions like moving the US embassy from Tel Aviv to Jerusalem when he was in the White House.

    “No President has done more for Israel than I have,” Trump wrote on his Truth Social network, adding that it was somewhat surprising that “our wonderful Evangelicals are far more appreciative of this than the people of the Jewish faith, especially those living in the U.S.” He was accused of using antisemitic tropes demanding the loyalty of American Jews. The White House said he insulted Jews and Israelis.

    Trump’s remarks Wednesday on Hezbollah, which has the capacity to rain even more carnage on Israel, also appeared inappropriate in the circumstances. “They’re vicious, and they’re smart. And, boy, are they vicious, because nobody’s ever seen the kind of sight that we’ve seen,” Trump said during a political event in Florida. His statement was in keeping with his habit of praising foreign adversaries he sees as tough even if they rule with an iron fist, infringe basic humanitarian values and are US adversaries. He’s rarely concealed his admiration of Chinese President Xi Jinping and North Korean tyrant Kim Jong Un, for instance. And he added to his long record of praising Vladimir Putin – an accused war criminal because of atrocities committed during the war in Ukraine – when he recently described the Russian leader as “a genius.”

    Trump often appeared to be willing to cede national interests to his political benefit while in office. For instance, at a summit with Putin in Helsinki he sided with Putin who dismissed findings by US intelligence agencies that Russia interfered in the 2016 election in attempt to help him.

    The former president is advocating a return to his “America First” nationalist foreign policy, prizes tough talk and ruthlessness on the global stage, and remains disdainful of allies and the international security architecture that has been the foundation of American power since the end of World War II. While these are positions that would represent a sharp transformation of US foreign policy, it is quite legitimate for him to present them to voters and try to win support for his vision.

    Yet his recent comments will only reinforce the impression often left by his actions as president that his own aspirations are most important. They also show Trump’s quintessential contempt for the rules of politics, foreign policy and even basic human decency, which explain why he horrifies many Americans and foreign governments. But this behavior is key to his authenticity for grass roots Republicans who abhor the codes of what they see as establishment elites.

    Trump during the Florida event criticized Israel for not taking part in the raid that killed Soleimani. “I’ll never forget that Bibi Netanyahu let us down. That was a very terrible thing, I will say that,” he said. It was not immediately clear whether Israel had considered an operational role in the strike or whether Trump had broken a confidence with an ally or even revealed classified information.

    The ex-president has a record however of loose talk on government secrets. He has been indicted over the alleged mishandling of national security material among classified documents he hoarded at his Mar-a-Lago resort after leaving office. Last week, ABC News reported that Trump allegedly shared US secrets about the submarine service and nuclear weapons with an Australian billionaire. Trump denies all wrongdoing.

    The ex-president’s GOP rivals, who have struggled to exploit his political vulnerabilities without alienating his super loyal supporters pounced on his criticism of Netanyahu.

    Florida Gov. Ron DeSantis accused Trump of throwing “verbal grenades” at Israel. “Now’s not the time to be doing, like, what Donald Trump did by attacking Prime Minister Bibi Netanyahu, attacking Israel’s defense minister, saying somehow that Hezbollah were ‘very smart,’” DeSantis said in New Hampshire. “Now’s not the time to air personal grievances about an Israeli prime minister.” Former Vice President Mike Pence hammered Trump’s foreign policy – even though he was part of the former president’s administration that repeatedly challenged American values. Pence also claimed that Trump had somehow changed in his years out of office, a debatable proposition that looks self-serving since it appears intended to create plausible distance from Trump’s excesses while in office.

    “He’s simply not expressing, and his imitators in his primary, are not expressing the same muscular American foreign policy that we lived out every day,” Pence said on a local New Hampshire radio.

    What Trump is expressing is his idiosyncratic, convention-busting brand of foreign policy rooted in his personal prejudices, grievances and search for political advantage that will once again rock the world if he wins the 2024 election.

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  • Baidu says its AI is in the same league as GPT-4 | CNN Business

    Baidu says its AI is in the same league as GPT-4 | CNN Business

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    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Chinese tech giant Baidu is officially taking on GPT-4.

    On Tuesday, the company unveiled ERNIE 4.0, the newest version of its artificial intelligence chatbot that it directly compared to the latest iteration of OpenAI’s ChatGPT.

    The new ERNIE Bot “is not inferior in any aspect to GPT-4,” Baidu’s billionaire CEO, Robin Li, told an audience at its annual flagship event.

    Speaking onstage, Li showed how the bot could generate a commercial for a car within minutes, solve complicated math problems and create a plot for a martial arts novel from scratch. The bot works mainly in Mandarin Chinese, its primary language. It is also able to handle queries and produce responses in English at a less advanced level.

    Li said the demonstrations showed how the bot had been “significantly improved” in terms of its understanding of queries, generation of complex responses and memory capabilities.

    While coming up with ideas for the novel, for instance, the bot was able to remember previous instructions and create sophisticated story lines by adding conflicts and characters, said Li.

    “We always complained that AI was not intelligent enough,” he quipped.

    “But today, it understands almost everything you say, and in many cases, it understands what you’re saying better than your friends or your colleagues.”

    Charlie Dai, vice president and research director of technology at Forrester, said Baidu is “the first vendor in China” to claim it could perform as well as GPT-4.

    “We still need more benchmarking evidence to prove it, but I’m cautiously optimistic that this is China’s GPT-4 moment, giving its long-term investment in AI [and machine learning],” he told CNN.

    In contrast to a pre-recorded presentation in March that failed to impress investors, Li demonstrated the bot in real time.

    Investors appeared unmoved, however, with Baidu’s shares down 1.4% in Hong Kong following the presentation.

    Baidu (BIDU) has been a frontrunner in China in the race to capitalize on the excitement around generative AI, the technology that underpins systems such as ChatGPT or its successor, GPT-4.

    The Beijing-based company unveiled ERNIE Bot in March, before launching it publicly in August.

    The newest iteration will launch first to invited users, Li said. The company did not specify when it would be made available publicly.

    ERNIE Bot has quickly gained traction, racking up more than 45 million users after reaching the top of Chinese app stores at one point, according to the company. ChatGPT, which was released last November, surpassed 100 million users in its first two months, according to a March report by Goldman Sachs analysts.

    Baidu faces competition within China, from companies such as Alibaba (BABA) and SenseTime, which have also shown off their own ChatGPT-style tools.

    Baidu says its service stands out because of its advanced grasp of Chinese queries, as well as its ability to generate different types of responses, such as video and audio.

    By comparison, GPT-4 is also able to analyze photos, but currently only generates text responses, according to its developer, OpenAI.

    Baidu is a market leader in China, said Dai.

    But the competition in this space “has just begun, and AI tech leaders like Alibaba … Huawei, JD Cloud, SenseTime, and Tencent all have chance to take the lead,” he noted.

    Some critics say the new offerings from Chinese firms will add fuel to an existing US-China rivalry in emerging technologies. Li has tried to shake off that comparison, saying previously that the company’s platform “is not a tool for the confrontation between China and the United States.”

    But Baidu has previously touted how ERNIE can outperform ChatGPT in some instances, saying its bot had scored higher marks than OpenAI’s on some academic exams.

    The Chinese company also announced Tuesday it had updated its suite of services to integrate the latest upgrades from ERNIE. Baidu’s popular search engine is now able to use the tool to produce more specific results, while its mobile mapping app can help users book services, such as taxis, according to Li.

    By doing so, “Baidu is also the first Chinese tech leader that has made substantial progress in modernizing the majority of its products” with an AI model, said Dai.

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  • Jeff Sessions Fast Facts | CNN Politics

    Jeff Sessions Fast Facts | CNN Politics

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    CNN
     — 

    Here’s a look at the life of Jeff Sessions, former US attorney general and former Republican senator of Alabama.

    Birth date: December 24, 1946

    Birth place: Selma, Alabama

    Birth name: Jefferson Beauregard Sessions III

    Father: Jefferson Beauregard Sessions Jr., business owner

    Mother: Abbie (Powe) Sessions

    Marriage: Mary Blackshear Sessions (1969-present)

    Children: Mary Abigail, Ruth and Samuel

    Education: Huntingdon College, B.A., 1969; University of Alabama, J.D., 1973

    Military service: US Army Reserve, 1973-1986, Captain

    Religion: Methodist

    Is an Eagle Scout.

    Served on the Senate Budget, Judiciary, Armed Services, and Environment and Public Works Committees.

    Voted against both of President Barack Obama’s Supreme Court nominees, Sonia Sotomayor and Elena Kagan.

    Supported building fencing along the US border, saying in 2006 that “good fences make good neighbors.”

    Was an opponent of the 2013 “Gang of Eight” immigration reform bill.

    1973-1975 – Practices law in Alabama.

    1975-1977 – Assistant US Attorney for the Southern District of Alabama.

    1981-1993 – US Attorney for the Southern District of Alabama.

    1986 – President Ronald Reagan nominates Sessions to become a federal judge. The Senate Judiciary Committee opposes the nomination following testimony that Sessions made racist remarks and called the NAACP and ACLU “un-American.”

    1995-1997- Alabama Attorney General. During this time, an Alabama judge accuses Sessions of prosecutorial misconduct related to the handling of evidence in a case but ultimately, Sessions is not disciplined for ethics violations.

    1996 – Elected to the US Senate. Reelected in 2002, 2008 and 2014.

    1997February 2017Republican senator representing Alabama.

    February 2, 2009 – Votes in favor of the confirmation of Eric Holder as attorney general.

    April 23, 2015 – Votes against the confirmation of Loretta Lynch as attorney general.

    February 28, 2016 – Becomes the first sitting US senator to endorse Donald Trump’s presidential bid.

    November 18, 2016 – President-elect Trump announces he intends to nominate Sessions to be the next attorney general.

    January 3, 2017 – An NAACP sit-in to protest the nomination of Sessions as US attorney general ends when six people are arrested at Sessions’ Mobile, Alabama, office.

    February 8, 2017 – After 30 hours of debate, the US Senate confirms Sessions as attorney general by a 52-47 vote.

    March 1, 2017 – The Washington Post reports that Sessions failed to disclose pre-election meetings with the top Russian diplomat in Washington. Sessions did not mention either meeting during his confirmation hearings when he said he knew of no contacts between Trump surrogates and Russians.

    March 2, 2017 – Sessions recuses himself from any involvement in a Justice Department probe into links between the Trump campaign and Moscow.

    March 10, 2017 – The DOJ abruptly announces the firing of 46 US attorneys, including Preet Bharara of New York. Bharara said that during the transition, Trump asked him to stay on during a meeting at Trump Tower.

    April 3, 2017 – The Department of Justice releases a memorandum ordering a review of consent decrees and other police reforms overseen by the federal government in response to complaints of civil rights abuses and public safety issues. During his confirmation hearing, Sessions expressed skepticism about the effectiveness of Justice Department interventions in local police matters.

    July 21, 2017 – The Washington Post reports that Sessions discussed policy-related matters with Russian ambassador, Sergey Kislyak before the 2016 election, according to intelligence intercepts. Sessions had previously claimed that he did not talk about the campaign or relations with Russia during his meetings with Kislyak.

    October 4, 2017 – In a memo to all federal prosecutors, Sessions says that a 1964 federal civil rights law does not protect transgender workers from employment discrimination and the department will take this new position in all “pending and future matters.”

    November 14, 2017 – During a House judiciary committee hearing, Sessions says he did not lie under oath in earlier hearings regarding communications with Russians during the 2016 presidential campaign, and denies participating in any collusion with Russia. Sessions also says the DOJ will consider investigations into Hillary Clinton and alleged ties between the Clinton Foundation and the sale of Uranium One.

    January 4, 2018 – Sessions announces that the DOJ is rescinding an Obama-era policy of non-interference with states that have legalized recreational marijuana. The reversal frees up federal prosecutors to pursue cases in states where recreational marijuana is legal.

    March 21, 2018 – Sessions issues a statement encouraging federal prosecutors to seek the death penalty for certain drug-related crimes, as mandated by law. Seeking capital punishment in drug cases is part of the Trump administration’s efforts to combat opioid abuse.

    May 7, 2018 – Sessions announces a “zero tolerance” policy for illegal border crossings, warning that parents could be separated from children if they try to cross to the United States from Mexico. “If you cross the border unlawfully, even a first offense, we’re going to prosecute you. If you’re smuggling a child, we’re going to prosecute you, and that child will be separated from you, probably, as required by law. If you don’t want your child to be separated, then don’t bring them across the border illegally.” On June 20, Trump signs an executive order that will keep far more families together at the border.

    May 30, 2018 – Trump again expresses regret for choosing Sessions to lead the Justice Department. In a tweet, he quotes a remark from Rep. Trey Gowdy (R-SC) who said that the president could have picked someone else as attorney general. “I wish I did!,” Trump tweets. He had first said that he was rethinking his choice of Sessions as attorney general during a July 2017 interview with the New York Times.

    June 2018 – More than 600 members of the United Methodist Church issue a formal complaint against Sessions, arguing that the US government’s “zero tolerance” policy on immigration, which was separating migrant parents from their children at the US-Mexico border, violates church rules and may constitute child abuse. On August 8, church officials confirm that the charges filed against Sessions have been dropped.

    August 23, 2018 – In response to Trump saying during a Fox News interview that Sessions “never took control” of the Justice Department, Sessions issues a rare statement, saying, “I took control of the Department of Justice the day I was sworn in…While I am Attorney General, the actions of the Department of Justice will not be improperly influenced by political considerations…”

    November 7, 2018 – President Trump asks Sessions to resign, effectively firing him. “At your request I am submitting my resignation,” Sessions writes in a letter delivered to White House chief of staff John Kelly.

    November 7, 2019 – Announces he is running for his former Alabama Senate seat.

    July 14, 2020 – Sessions loses the Alabama Senate GOP primary runoff to former Auburn University football coach Tommy Tuberville.

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  • Co-founder of Russia’s equivalent of Google slams ‘barbaric’ invasion of Ukraine | CNN Business

    Co-founder of Russia’s equivalent of Google slams ‘barbaric’ invasion of Ukraine | CNN Business

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    The founder and former CEO of Russia’s largest internet company, Arkady Volozh, has slammed Vladimir Putin’s “barbaric” war in Ukraine, becoming one of the most prominent Russian businessmen to express criticism of what Russia still calls euphemistically its “special military operation.”

    “I’ve been asked a lot of questions over the past year, and especially a lot of them came up this week. I would like to clarify my position,” he said in a statement released to the media.

    “I am totally against Russia’s barbaric invasion of Ukraine, where I, like many, have friends and relatives. I am horrified by the fact that every day bombs fly into the homes of Ukrainians,” said Volozh, describing himself “as a “Kazakhstan-born, Israeli tech entrepreneur, computer scientist, investor, and philanthropist.”

    “Despite the fact that I have not lived in Russia since 2014, I understand that I also have a share of responsibility for the actions of the country,” he added. “There were many reasons why I had to remain silent. You can argue about the timeliness of my statement, but not about its substance. I am against war.”

    In June 2022, Volozh quit as CEO of Yandex

    (YNDX)
    , which also operates Russia’s most popular search engine, after he was sanctioned by the European Union over Russia’s actions in Ukraine.

    “Volozh is a leading businessperson involved in economic sectors providing a substantial source of revenue to the Government of the Russian Federation, which is responsible for the annexation of Crimea and the destabilization of Ukraine,” the EU said. “Yandex is also responsible for promoting State media and narratives in its search results, and de-ranking and removing content critical of the Kremlin, such as content related to Russia’s war of aggression against Ukraine.”

    In his statement, Volozh said after moving to Israel in 2014, he has been working on developing Yandex’s international projects. “But in February 2022, the world changed, and I realized that my story with Yandex was over.”

    “After the outbreak of the war, I focused on supporting talented Russian engineers who decided to leave the country and start a new life. It turned out to be a difficult task that required a lot of effort, attention and caution,” he said.

    “Now these people are outside of Russia and can start doing something new in the most advanced areas of technology. They will be of great benefit to the countries where they remain,” he added.

    Volozh went on to say that when Yandex was created, “We believed that we were building a new Russia – an open, progressive, integrated into the global economy, known in the world not only for its raw materials.”

    However, “over time, it became clear that Russia was in no hurry to become part of the global world. At the same time, the pressure on the company grew,” he said. “But we did not give up, we did our best despite the external conditions. Has it always been possible to find the right balance? Now, looking back, it is clear that something could have been done differently.”

    On Thursday, the UK removed sanctions against another prominent Russian businessman – eccentric Russia-born tycoon Oleg Tinkov, the most outspoken billionaire to criticize Vladimir Putin’s invasion of Ukraine.

    The Foreign Office said that Tinkov, 55, would no longer be subject to sanctions following an appeal during which he argued the UK had sanctioned him in error.

    Whereas most Russian oligarchs have, at most, spoken out against the invasion only in guarded terms, Tinkov has denounced the “crazy war” in Ukraine and renounced his Russian citizenship last year in protest.

    Last year, he said the Russian government forced him into a “fire sale” of his stake in leading fintech TCS over his anti-war statements.

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  • Another top Silicon Valley investor is splitting off its China business as pressure mounts | CNN Business

    Another top Silicon Valley investor is splitting off its China business as pressure mounts | CNN Business

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    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    GGV Capital, a prominent Silicon Valley venture capital firm, has become the latest big investor to break up its US and China operations into separate companies as tensions between the two countries over tech and geopolitics continue to rise.

    The firm announced Thursday that it would divide its business into two “completely independent” firms with separate new brands, which have not been revealed.

    According to the company, one side will concentrate on North America, Latin America, Europe, Israel and cross-border US-India deals, led by teams in California and New York by managing partners Glenn Solomon, Hans Tung, Jeff Richards and Oren Yunger.

    The other side will focus on China, Southeast Asia and South Asia, run from its headquarters in Singapore, by managing partners Jenny Lee and Jixun Foo.

    GGV’s existing Chinese yuan-denominated funds “will continue to be managed independently” under its Chinese brand, Jiyuan Capital, it said.

    In a statement, the firm attributed the decision to the fact that “over the last decade, the investment landscape has shifted significantly, and the operating environment has become highly complex.”

    “Against these new realities, GGV is also evolving,” it added, without elaborating further.

    The transition is expected to be completed by the end of the first quarter of next year.

    GGV Capital has approximately $9.2 billion in assets under management. The firm is known for backing tech companies around the world, such as Alibaba (BABA), Airbnb (ABNB), Slack, TikTok owner ByteDance and Chinese ride-hailing provider Didi.

    The move comes as US-China tensions continue to affect how businesses operate across the world’s top two economies.

    Last month, the Biden administration announced it would restrict investments by US venture capital and private equity firms, as well as joint ventures, in Chinese artificial intelligence, quantum computing and semiconductors.

    The executive order will exacerbate a slump in deals between the United States and China, and deliver a “major blow” to Chinese startups, analysts and investors previously told CNN.

    Asked whether the US order or wider geopolitical tensions had factored into its decision, GGV Capital declined to comment.

    The firm has recently come under greater scrutiny from US lawmakers.

    In July, a US House committee said it had sent letters to four investment firms, including GGV, “expressing serious concern and demanding information about the firms’ investments” in artificial intelligence, chips and quantum computing companies in China.

    One investment named was a GGV deal with Megvii, an AI developer. The company is best known for its facial recognition software, and has long been accused of human rights violations against Uyghurs and other members of Muslim minority groups in China’s Xinjiang region.

    Megvii was added to a US trade blacklist in 2019 over the issue and previously told CNN that there were “no grounds” for that decision.

    The ongoing pressure has already led other firms to separate their US and Chinese businesses this year.

    In June, top global venture capital firm Sequoia announced a similar decision to cordon off its operations into three entities that cover Europe and the United States; China; and India and Southeast Asia. Its China business will be run independently under its Chinese name, Hongshan.

    Leaders of the Silicon Valley firm said at the time that it had “become increasingly complex to run a decentralized global investment business.”

    In August, Dentons, a leading law firm, also said its China unit would become a standalone legal entity, in response to new Chinese regulations related to data privacy, cybersecurity and capital control.

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  • Taiwan investigates firms that worked with Chinese companies reportedly supplying Huawei | CNN Business

    Taiwan investigates firms that worked with Chinese companies reportedly supplying Huawei | CNN Business

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    Taipei/Hong Kong
    CNN
     — 

    Taiwan is investigating whether four of its firms broke US sanctions or its own investment rules when they provided services to Chinese companies that are reportedly helping Huawei build chip factories.

    Emile Chang, a Ministry of Economic Affairs official in charge of reviewing investments, told CNN Friday that an “administrative probe” had been initiated this week into four Taiwanese companies named in a media report.

    The investigation will focus on whether their business activities in China were consistent with approvals they had been granted by the ministry, he said.

    If any of them are found to have violated the rules, each company is subject to a maximum fine of 25 million New Taiwan dollars ($777,000).

    The ministry will also look into whether the companies — Topco Scientific, United Integrated Services, L&K Engineering Co and Cica-Huntek Chemical Technology — violated any US sanctions, Chang added.

    All four companies deny any wrongdoing. In separate statements, they said they were involved only in wastewater management, interior decoration or construction work approved by Taiwan, and did not provide semiconductor materials or equipment.

    In recent years, Huawei has become a symbol of the tech rivalry between the United States and China. Washington and its allies in Europe and Asia have sought to curb its access to advanced chips and chipmaking technology due to fears that the telecoms company spies for the Chinese government.

    Huawei has always denied the allegations. It has not responded to a CNN request for comment.

    Formerly the world’s second largest maker of smartphones, the company has been attempting a comeback after being hit by US export restrictions, which were first imposed in 2019.

    Many Taiwanese companies, including chip giant TSMC and Apple supplier Foxconn, operate in China and are closely integrated into its supply chains. However, the island’s government keeps a close eye on what its companies are doing and does not allow its most advanced technology to be produced there.

    On Wednesday, Taiwan’s Minister of Economic Affairs Wang Mei-hua was asked by a lawmaker about a Bloomberg report that the four companies had allegedly supplied services to help Huawei build infrastructure for a network of chip making plants in China.

    Wang responded by saying the four companies had apparently provided Huawei with “wastewater and environmental protection equipment” for its factories, which she said was ostensibly different from the critical technologies the Taiwan government designated that could potentially impact national security.

    For years, Taiwan’s companies have been treading a fine line between engaging China’s commercial opportunities and avoiding potential violations of export controls, particularly as Beijing has ramped up military pressure on the island.

    Cross-strait relations are a key issue in Taiwan’s presidential election, which is due in January.

    China remains Taiwan’s largest trading partner. But China’s ruling Communist Party claims Taiwan, home to 24 million residents, as its territory — despite never having controlled it. It has long vowed to “reunify” Taiwan with the Chinese mainland, by force if necessary.

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  • US pauses certain assistance programs to Niger’s government | CNN Politics

    US pauses certain assistance programs to Niger’s government | CNN Politics

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    CNN
     — 

    The United States “is pausing certain foreign assistance programs benefiting the government of Niger” amid the military takeover in the West African country, Secretary of State Antony Blinken announced Friday.

    Blinken described it as an “interim measure” and said it does not impact all foreign assistance programs.

    “Most importantly, the provision of life-saving humanitarian and food assistance will continue,” Blinken said in a statement. “Further, we are continuing U.S. government activities in Niger where feasible to do so, including diplomatic and security operations, for the protection of U.S. personnel.”

    “This is consistent with steps taken by ECOWAS and the African Union,” he said. “The U.S. government will continue to review our foreign assistance and cooperation as the situation on the ground evolves consistent with our policy objectives and legal restrictions.”

    “As we have made clear since the outset of this situation, the provision of U.S. assistance to the government of Niger depends on democratic governance and respect for constitutional order,” Blinken said.

    Indeed, Blinken and others have reiterated that US assistance is at risk unless the coup leaders restore democratically elected President Mohamed Bazoum to power.

    The US and partners have been engaged in intensive diplomatic efforts to try to restore democratic rule to Niger, which had become a point of stability in the Sahel region. The Economic Community of West African States has warned that they will use military force unless the coup leaders back down by Sunday.

    “We’re working hard with ECOWAS to coordinate the negotiations,” a senior State Department official said Thursday. “We have our own equities as well, so, we’re also working with them, the military in Niger, to understand the consequences of, if this succeeds, what that would mean for our partnership going forward.”

    In recent days, the US State Department ordered the departure of non-emergency personnel and family members from the country, though the embassy remains open and the roughly 1,100 US troops stationed in Niger remain there.

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  • Justin Trudeau blasts Facebook for blocking news as Canada’s wildfires rage | CNN Business

    Justin Trudeau blasts Facebook for blocking news as Canada’s wildfires rage | CNN Business

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    CNN
     — 

    Canadian Prime Minister Justin Trudeau blasted Facebook for “putting corporate profits ahead of people’s safety” as the social media platform continues to block news content while wildfires rage in Canada’s Northwest Territories and British Columbia.

    “It is so inconceivable that a company like Facebook is choosing to put corporate profits ahead of ensuring that local news organizations can get up-to-date information to Canadians, and reach them where Canadians spend a lot of their time; online, on social media, on Facebook,” Trudeau said during a news conference Monday.

    Some 60,000 people across the Northwest Territories and British Columbia have been placed under evacuation orders since this weekend, according to the most recent numbers from Canadian officials. Also on Monday, Trudeau described the devastation wrought by the wildfires as “apocalyptic” and praised Canadians for stepping up to support evacuees.

    Earlier this month, Facebook’s parent-company Meta began to block news links from Facebook and Instagram in Canada, in response to recently-passed legislation in the country that requires tech companies to negotiate payments to news organizations for hosting their content.

    A Meta spokesperson told CNN in a statement on Monday that Canadians “continue to use our technologies in large numbers to connect with their communities and access reputable information, including content from official government agencies, emergency services and non-governmental organizations.”

    The new legislation in Canada “forces us to end access to news content in order to comply with the legislation but we remain focused on making our technologies available,” the statement added, pointing to Meta’s Safety Check tool, which the company said more than 45,000 people had used as of Friday to mark themselves as safe.

    The Meta spokesperson added that 300,000 people have visited the Yellowknife and Kelowna Crisis Response pages on Facebook.

    The Canadian legislation, known as Bill C-18 or the Online News Act, was given final approval in June. It aims to support the sustainability of news organizations by regulating “digital news intermediaries with a view to enhancing fairness in the Canadian digital news marketplace.”

    Meta has previously stated, via a company blogpost, that the legislation “misrepresents the value news outlets receive when choosing to use our platforms.” The ongoing controversy in Canada comes amid a global debate over the relationship between news organizations and social media companies about the value of news content, and who gets to benefit from it.

    During his remarks Monday, Trudeau said Facebook’s move to block news content is “bad for democracy” in the long run. “But right now, in an emergency situation, where up-to-date local information is more important than ever, Facebook’s putting corporate profits ahead of people’s safety,” Trudeau said.

    CNN’s Brian Fung contributed to this report.

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  • Baidu and SenseTime launch ChatGPT-style AI bots to the public | CNN Business

    Baidu and SenseTime launch ChatGPT-style AI bots to the public | CNN Business

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    Hong Kong
    CNN
     — 

    Chinese tech firms Baidu and SenseTime launched their ChatGPT-style AI bots to the public on Thursday, marking a new milestone in the global AI race.

    Baidu has opened public access to its ERNIE Bot, allowing users to conduct AI-powered searches or carry out an array of tasks, from creating videos to providing summaries of complex documents.

    The news sent its shares 3.1% higher in New York on Wednesday and 4.7% higher in Hong Kong on Thursday.

    Baidu (BIDU) is among the first companies in China to get regulatory approval for the rollout, and it is the first to launch this type of service publicly, according to a person familiar with the matter.

    Until Thursday, ERNIE Bot, also called “Wenxin Yiyan” in Chinese, had been offered only to corporate clients or select members of the public who requested access through a waitlist.

    Meanwhile, SenseTime, an AI startup based in Hong Kong, also announced the public launch of its SenseChat platform on Thursday. The company’s shares surged 4% in Hong Kong following the news

    “We are pleased to announce that starting today, it is fully available to serve all users,” a SenseTime spokesperson told CNN in a statement.

    China published new rules on generative AI in July, becoming one of the world’s first countries to regulate the industry. The measures took effect on August 15.

    Baidu has been a frontrunner in China in the race to capitalize on the excitement around generative artificial intelligence, the technology that underpins systems such as ChatGPT or its successor, GPT-4. The latter has impressed users with its ability to simplify coding, rapidly create a website from a simple sketch and pass exams with high marks.

    Baidu announced its own iteration in February, giving it an early advantage in China, according to analysts. It unveiled ERNIE a month later, showing how it could generate a newsletter, come up with a corporate slogan and solve a math riddle.

    Since then, competitors such as Alibaba (BABA) and SenseTime have announced plans to launch their own ChatGPT-style tools, adding to the list of Chinese businesses jumping on the bandwagon. Alibaba told CNN Thursday that it had filed for regulatory approval for its own bot, which was introduced in April.

    The company is now waiting to officially launch and “the initial list of companies that have received the approval is expected to be released by relevant local departments within one week,” said an Alibaba Cloud spokesperson.

    Some critics say the new offerings from Chinese firms will add fuel to an existing US-China rivalry in emerging technologies. Baidu CEO Robin Li has tried to shake off that comparison, saying previously that the company’s platform “is not a tool for the confrontation between China and the United States.”

    The firm’s new feature — which will be embedded in its popular search engine, among its other offerings — follows a similar feature introduced by Alphabet’s Google (GOOGL) in May, which allows users to search the web using its AI chatbot.

    Baidu says its service stands out because of its advanced grasp of Chinese queries, as well as its ability to generate different types of responses, such as text, images, audio and video.

    By comparison, GPT-4 is also able to analyze photos, but currently only generates text responses, according to its developer, OpenAI.

    While ERNIE Bot is available globally, its interface is in Chinese, though users will be able to enter both Chinese and English prompts, a Baidu spokesperson told CNN.

    SenseTime, which unveiled its service in April, has touted a range of features, which it says allow users to write or debug code more efficiently or receive personalized medical advice from a virtual health consultation assistant.

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  • China is huge for chip designer Arm. That’s a risk for its new investors | CNN Business

    China is huge for chip designer Arm. That’s a risk for its new investors | CNN Business

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    Hong Kong
    CNN
     — 

    As British chip designer Arm prepares to raise about $5 billion in an initial public offering (IPO) on Thursday, its China business has become a serious point of concern.

    The SoftBank-owned firm used many pages of its IPO prospectus to warn investors of risks related to its exposure to China at a time of rising tension between Washington and Beijing over chip technology.

    Its regulatory filing last month revealed that a quarter of its sales come from China, through an unusual relationship with an entity it does not control and with which it has a complex history.

    Arm China is “an entity that operates independently of us and is our single largest customer,” the company said in its prospectus. “Neither we nor SoftBank Group control the operations of Arm China.”

    Arm, which is based in Cambridge, added that the scale of its business in China made it “particularly susceptible to economic and political risks,” which could be worsened by tensions between the country and the United States or the United Kingdom.

    The company has long been vulnerable in this area, which may have already contributed to a lower market valuation than SoftBank was expecting.

    Arm blamed an economic slowdown in China as well as “factors related to export control and national security matters” for slower growth in royalty revenues from China in its fiscal year to March. Total revenue from China did increase in that period, however.

    Royalties are hugely significant for Arm, which gets a fee from each chip developed using its products. The company relies on royalties and licensing for most of its income.

    Arm said Wednesday it priced its shares at $51 each, raising as much as $4.9 billion. The tally could rise to $5.2 billion if banks exercise an option to buy additional shares, valuing the chip designer at as much as $54.5 billion.

    That’s less than the $64 billion valuation implied when SoftBank bought a remaining 25% stake in the company from its Vision Fund unit just last month.

    Arm has declined to comment.

    Concerns about China are likely to have been “built into IPO pricing expectations already, although a worst-case scenario of increased US sanctions [or] trade restrictions probably is not,” Kirk Boodry, an investment advisor at Astris Advisory, a Japanese investment research firm, told CNN.

    Arm was publicly listed until 2016, when Japan’s SoftBank bought it for $32 billion.

    Four years later, SoftBank tried to sell Arm to Nvidia for $40 billion, in what would have been the biggest chip deal of all time. But it didn’t pass muster with global antitrust regulators, and was called off in February 2022.

    Now, Arm’s return to the stock market is being closely watched as it promises to be the biggest US IPO since 2021.

    SoftBank CEO Masayoshi Son has touted it as an AI company that could have “exponential growth,” and promised that ChatGPT-like services will eventually be offered on Arm-designed machines.

    “The value of chips, and Arm’s technology, has maybe never been more in demand from the global economy,” said Kyle Stanford, lead venture capital analyst at PitchBook.

    But Arm is a middleman in the semiconductor industry, which is a key source of tension in US-China relations. Both countries are racing to boost their prowess in the sector, and each side has recently enacted export controls aimed at limiting the other’s capacity.

    “Chip tensions will never go away,” Stanford argued. “Political and regulatory pressure is likely to increase.”

    On Tuesday, former US Securities and Exchange Commission Chairman Jay Clayton told US lawmakers that large public companies with major exposure to China should be prompted to disclose specific risks associated with the country, “and what type of scenario planning they have done in the event of abrupt decoupling.”

    Although US officials have insisted that America is not seeking to decouple from China, they have pointed to the importance of reducing its reliance on the world’s second largest economy.

    In its filing, Arm said it held just a “4.8% indirect ownership interest in Arm China,” through a 10% non-voting stake in a SoftBank-controlled entity that owns less than half of the Chinese company.

    While such convoluted corporate structures aren’t unique in China, “in my view, it is very problematic,” said Ivana Delevska, founder and chief investment officer of asset manager Spear Invest.

    “Investors of other companies are just waking up to this fact in light of increased tensions,” she added.

    Arm has had trouble with Arm China before. In its filing, it said the business has a record of late payments.

    “Although these historical issues did not have a material impact on our operations, any future failure to pay us the amounts we are owed … could have a material adverse effect on our business,” Arm said.

    Arm China has also been subject to a legal battle with its former CEO, Allen Wu.

    Since April 2022, Wu and entities effectively controlled by him have lodged several lawsuits in Chinese courts against Arm China, “seeking to challenge certain aspects of Arm China’s corporate governance and the actions of Arm China’s board of directors,” Arm said in its filing.

    As of August, the cases had been resolved in favor of Arm China, it said, but the outcome could still be appealed. potentially hurting the British firm in the future.

    That hasn’t stopped many of the biggest names in global tech from jumping on board.

    Companies including Apple (AAPL), Google (GOOGL), Nvidia (NVDA), AMD (AMD), Samsung and TSMC (TSM) have indicated interest in acting as cornerstone investors in the offering, according to a filing last week.

    Delevska said the interest reflected Arm’s strong position in the industry and had helped to prop up its overall valuation.

    “I believe it is good timing for the IPO,” she added. “Investors will just have to price in the China risk.”

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  • The Israel-Hamas war reveals how social media sells you the illusion of reality | CNN Business

    The Israel-Hamas war reveals how social media sells you the illusion of reality | CNN Business

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    New York
    CNN
     — 

    As the Israel-Hamas war reaches the end of its first week, millions have turned to platforms including TikTok and Instagram in hopes of comprehending the brutal conflict in real time. Trending search terms on TikTok in recent days illustrate the hunger for frontline perspectives: From “graphic Israel footage” to “live stream in Israel right now,” internet users are seeking out raw, unfiltered accounts of a crisis they are desperate to understand.

    For the most part, they are succeeding, discovering videos of tearful Israeli children wrestling with the permanence of death alongside images of dazed Gazans sitting in the rubble of their former homes. But that same demand for an intimate view of the war has created ample openings for disinformation peddlers, conspiracy theorists and propaganda artists — malign influences that regulators and researchers now warn pose a dangerous threat to public debates about the war.

    One recent TikTok video, seen by more than 300,000 users and reviewed by CNN, promoted conspiracy theories about the origins of the Hamas attacks, including false claims that they were orchestrated by the media. Another, viewed more than 100,000 times, shows a clip from the video game “Arma 3” with the caption, “The war of Israel.” (Some users in the comments of that video noted they had seen the footage circulating before — when Russia invaded Ukraine.)

    TikTok is hardly alone. One post on X, formerly Twitter, was viewed more than 20,000 times and flagged as misleading by London-based social media watchdog Reset for purporting to show Israelis staging civilian deaths for cameras. Another X post the group flagged, viewed 55,000 times, was an antisemitic meme featuring Pepe the Frog, a cartoon that has been appropriated by far-right white supremacists. On Instagram, a widely shared and viewed video of parachuters dropping in on a crowd and captioned “imagine attending a music festival when Hamas parachutes in” was debunked over the weekend and, in fact, showed unrelated parachute jumpers in Egypt. (Instagram later labeled the video as false.)

    This week, European Union officials sent warnings to TikTok, Facebook and Instagram-parent Meta, YouTube and X, highlighting reports of misleading or illegal content about the war on their platforms and reminding the social media companies they could face billions of dollars in fines if an investigation later determines they violated EU content moderation laws. US and UK lawmakers have also called on those platforms to ensure they are enforcing their rules against hateful and illegal content.

    Since the violence in Israel began, Imran Ahmed, founder and CEO of the social media watchdog group Center for Countering Digital Hate, told CNN his group has tracked a spike in efforts to pollute the information ecosystem surrounding the conflict.

    “Getting information from social media is likely to lead to you being severely disinformed,” said Ahmed.

    Everyone from US foreign adversaries to domestic extremists to internet trolls and “engagement farmers” has been exploiting the war on social media for their own personal or political gain, he added.

    “Bad actors surrounding us have been manipulating, confusing and trying to create deception on social media platforms,” Dan Brahmy, CEO of the Israeli social media threat intelligence firm Cyabra, said Thursday in a video posted to LinkedIn. “If you are not sure of the trustworthiness [of content] … do not share,” he said.

    ‘Upticks in Islamophobic and antisemitic narratives’

    Graham Brookie, senior director of the Digital Forensic Research Lab at the Atlantic Council in Washington, DC, told CNN his team has witnessed a similar phenomenon. The trend includes a wave of first-party terrorist propaganda, content depicting graphic violence, misleading and outright false claims, and hate speech – particularly “upticks in specific and general Islamophobic and antisemitic narratives.”

    Much of the most extreme content, he said, has been circulating on Telegram, the messaging app with few content moderation controls and a format that facilitates quick and efficient distribution of propaganda or graphic material to a large, dedicated audience. But in much the same way that TikTok videos are frequently copied and rebroadcast on other platforms, content shared on Telegram and other more fringe sites can easily find a pipeline onto mainstream social media or draw in curious users from major sites. (Telegram didn’t respond to a request for comment.)

    Schools in Israel, the United Kingdom and the United States this week urged parents to delete their children’s social media apps over concerns that Hamas will broadcast or disseminate disturbing videos of hostages who have been seized in recent days. Photos of dead or bloodied bodies, including those of children, have already spread across Facebook, Instagram, TikTok and X this week.

    And tech watchdog group Campaign for Accountability on Thursday released a report identifying several accounts on X sharing apparent propaganda videos with Hamas iconography or linking to official Hamas websites. Earlier in the week, X faced criticism for videos unrelated to the war being presented as on-the-ground footage and for a post from owner Elon Musk directing users to follow accounts that previously shared misinformation (Musk’s post was later deleted, and the videos were labeled using X’s “community notes” feature.)

    Some platforms are in a better position to combat these threats than others. Widespread layoffs across the tech industry, including at some social media companies’ ethics and safety teams, risk leaving the platforms less prepared at a critical moment, misinformation experts say. Much of the content related to the war is also spreading in Arabic and Hebrew, testing the platforms’ capacity to moderate non-English content, where enforcement has historically been less robust than in English-language content.

    “Of course, platforms have improved over the years. Communication & info sharing mechanisms exist that did not in years past. But they have also never been tested like this,” Brian Fishman, the co-founder of trust and safety platform Cinder who formerly led Facebook’s counterterrorism efforts, said Wednesday in a post on Threads. “Platforms that kept strong teams in place will be pushed to the limit; platforms that did not will be pushed past it.”

    Linda Yaccarino, the CEO of X, said in a letter Wednesday to the European Commission that the platform has “identified and removed hundreds of Hamas-related accounts” and is working with several third-party groups to prevent terrorist content from spreading. “We’ve diligently taken proactive actions to remove content that violates our policies, including: violent speech, manipulated media and graphic media,” she said. The European Commission on Thursday formally opened an investigation into X following its earlier warning about disinformation and illegal content linked to the war.

    Meta spokesperson Andy Stone said that since Hamas’ initial attacks, the company has established “a special operations center staffed with experts, including fluent Hebrew and Arabic speakers, to closely monitor and respond to this rapidly evolving situation. Our teams are working around the clock to keep our platforms safe, take action on content that violates our policies or local law, and coordinate with third-party fact checkers in the region to limit the spread of misinformation. We’ll continue this work as this conflict unfolds.”

    YouTube, for its part, says its teams have removed thousands of videos since the attack began, and continues to monitor for hate speech, extremism, graphic imagery and other content that violates its policies. The platform is also surfacing almost entirely videos from mainstream news organizations in searches related to the war.

    Snapchat told CNN that its misinformation team is closely watching content coming out of the region, making sure it is within the platform’s community guidelines, which prohibits misinformation, hate speech, terrorism, graphic violence and extremism.

    TikTok did not respond to a request for comment on this story.

    Large tech platforms are now subject to content-related regulation under a new EU law called the Digital Services Act, which requires them to prevent the spread of mis- and disinformation, address rabbit holes of algorithmically recommended content and avoid possible harms to user mental health. But in such a contentious moment, platforms that take too heavy a hand in moderation could risk backlash and accusations of bias from users.

    Platforms’ algorithms and business models — which generally rely on the promotion of content most likely to garner significant engagement — can aid bad actors who design content to capitalize on that structure, Ahmed said. Other product choices, such as X’s moves to allow any user to pay for a subscription for a blue “verification” checkmark that grants an algorithmic boost to post visibility, and to remove the headlines from links to news articles, can further manipulate how users perceive a news event.

    “It’s time to break the emergency glass,” Ahmed said, calling on platforms to “switch off the engagement-driven algorithms.” He added: “Disinformation factories are going to cause geopolitical instability and put Jews and Muslims at harm in the coming weeks.”

    Even as social media companies work to hide the absolute worst content from their users — whether out of a commitment to regulation, advertisers’ brand safety concerns, or their own editorial judgments — users’ continued appetite for gritty, close-up dispatches from Israelis and Palestinians on the ground is forcing platforms to walk a fine line.

    “Platforms are caught in this demand dynamic where users want the latest and the most granular, or the most ‘real’ content or information about events, including terrorist attacks,” Brookie said.

    The dynamic simultaneously highlights the business models of social media and the role the companies play in carefully calibrating their users’ experiences. The very algorithms that are widely criticized elsewhere for serving up the most outrageous, polarizing and inflammatory content are now the same ones that, in this situation, appear to be giving users exactly what they want.

    But closeness to a situation is not the same thing as authenticity or objectivity, Ahmed and Brookie said, and the wave of misinformation flooding social media right now underscores the dangers of conflating them.

    Despite giving the impression of reality and truthfulness, Brookie said, individual stories and combat footage conveyed through social media often lack the broader perspective and context that journalists, research organizations and even social media moderation teams apply to a situation to help achieve a fuller understanding of it.

    “It’s my opinion that users can interact with the world as it is — and understand the latest, most accurate information from any given event — without having to wade through, on an individual basis, all of the worst possible content about that event,” Brookie said.

    Potentially exacerbating the messy information ecosystem is a culture on social media platforms that often encourages users to bear witness to and share information about the crisis as a way of signaling their personal stance, whether or not they are deeply informed. That can lead even well-intentioned users to unwittingly share misleading information or highly emotional content created with the intention of collecting views or monetizing highly engaging content.

    “Be very cautious about sharing in the middle of a major world event,” Ahmed said. “There are people trying to get you to share bullsh*t, lies, which are designed to inculcate you to hate or to misinform you. And so sharing stuff that you’re not sure about is not helping people, it’s actually really harming them and it contributes to an overall sense that no one can trust what they’re seeing.”

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  • Taiwan’s Foxconn to build ‘AI factories’ with Nvidia | CNN Business

    Taiwan’s Foxconn to build ‘AI factories’ with Nvidia | CNN Business

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    Taipei
    CNN
     — 

    Taiwan’s Foxconn says it plans to build artificial intelligence (AI) data factories with technology from American chip giant Nvidia, as the electronics maker ramps up efforts to become a major global player in electric car manufacturing.

    Foxconn Chairman Young Liu and Nvidia CEO Jensen Huang jointly announced the plans on Wednesday in Taipei. The duo said the new facilities using Nvidia’s chips and software will enable Foxconn to better utilize AI in its electric vehicles (EV).

    “We are at the beginning of a new computing revolution,” Huang said. “This is the beginning of a brand new way of doing software — using computers to write software that no humans can.”

    Large computing systems powered by advanced chips will be able to develop software platforms for the next generation of EVs by learning from everyday interactions, they said.

    “Foxconn is turning from a manufacturing service company into a platform solution company,” Liu said. “In three short years, Foxconn has displayed a remarkable range of high-end sedan, passenger crossover, SUV, compact pick-up, commercial bus and commercial van.”

    Best known as the assembler of Apple’s iPhones, Foxconn envisages a similar business model for EVs. It doesn’t sell the vehicles under its own brand. Instead, it will build them for clients in Taiwan and globally.

    In 2021, Foxconn unveiled three EV models, including two passenger cars and a bus, for the first time. They were followed by additional models last year and two new ones — Model N, a cargo van, and Model B, a compact SUV — during Foxconn’s tech day on Wednesday.

    Its electric buses started running in the southern Taiwanese city of Kaohsiung last year, while its first electric car, sold under the N7 brand by Taiwanese automaker Luxgen, is expected to begin deliveries on the island from January 2024.

    Foxconn has entered a competitive industry.

    Global sales of EVs, including purely battery powered vehicles and hybrids, exceeded 10 million units last year, up 55% from 2021, according to the International Energy Agency. Nearly 14 million electric cars will be sold in 2023, it projected.

    Foxconn, which is officially known as the Hon Hai Technology Group, has been expanding its business by entering new industries such as EVs, digital health and robotics.

    Analysts say its entry into the EV space is a “logical diversification.”

    Smartphones are “a very saturated market already, and the room to grow in the … industry is getting [smaller],” said Kylie Huang, a Taipei-based analyst at Daiwa. “If they can really tap into the EV business, I do think that [they] could become influential in the next couple of years.”

    During last year’s tech day, Liu told reporters that the company hoped to build 5% of the world’s electric cars by 2025. It aims to eventually produce up to 40% to 45% of EVs around the world.

    But its foray into the industry hasn’t been entirely smooth.

    Last year, Foxconn bought a factory from Lordstown Motors in Ohio that used to make small cars for General Motors. That partnership ended in June, with the American car company filing for bankruptcy protection and announcing a lawsuit against Foxconn.

    Lordstown Motors accused Foxconn of “fraud” and failing to follow through on investment promises, while Foxconn dismissed the suit as “meritless” and criticized the company for making “false comments and malicious attacks.”

    Still, it’s clear Foxconn is leaning into its expanded ambitions, including hiring two new chief strategy officers for its EV and chips businesses.

    Chiang Shang-yi is a Taiwanese semiconductor industry veteran who helped TSMC become a global foundry powerhouse, while Jun Seki, a former vice chief operating officer at Nissan Motor, leads the EV unit.

    In May, Foxconn announced a new partnership with Infineon Technologies, a German company that specializes in automotive semiconductor chips, to establish a new research center in Taiwan.

    Bill Russo, founder of Shanghai-based consulting firm Automobility, said Foxconn has the advantage of coming from a consumer electronics background, which could allow it to come up with more innovative EV products compared with traditional automakers.

    “The biggest problem with legacy automakers is that they have so much sunk investment in a carryover platform, that they typically want to start not with a clean sheet of paper, but with a highly constrained set of requirements,” he said. “Those carryover technologies bring constraints to how you think about vehicles.”

    “When Tesla started, it started by saying, ‘I’m going to challenge all of that, I’m going to blow up the basic architecture of a car and simplify it greatly,’” he added.

    “I think that’s the advantage that a technology company has … And I think that’s the way Foxconn will come at this.”

    Hanna Ziady contributed to this report.

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  • Biden leaving war planning to Israelis but asked ‘hard questions’ about ground invasion strategy this week, US official says | CNN Politics

    Biden leaving war planning to Israelis but asked ‘hard questions’ about ground invasion strategy this week, US official says | CNN Politics

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    CNN
     — 

    The US is allowing Israel to make its own calls on timing and strategy in its war with Hamas, but US President Joe Biden did weigh in on the matter during his visit with Israeli Prime Minister Benjamin Netanyahu and the war cabinet in Tel Aviv earlier this week, according to a senior administration official.

    “He asked some hard questions” about what was being planned and what the effects would be, the official told CNN, adding: “We’re not directing the Israelis, the timeline is theirs – their thinking, their planning.”

    The White House late Friday sought to clarify a brief comment made by Biden after he was asked by a reporter whether Israel should delay a ground invasion in Gaza until more hostages can get out. As he climbed the stairs to Air Force One, the president responded, “Yes.”

    The White House immediately moved to explain the president’s comments – which could be seen as the US staking out a role in the war between Israel and Hamas that erupted on October 7.

    “The president was far away. He didn’t hear the full question. The question sounded like ‘Would you like to see more hostages released?’ He wasn’t commenting on anything else,” White House communications director Ben LaBolt said less than an hour after the president’s comment, according to the press pool.

    Earlier Friday, Hamas released two American hostages in a deal brokered by the Qatari government. A number of foreign nationals were among those kidnapped by Hamas, but information about the status, location and identity of all the hostages remains scarce.

    As CNN has reported, the US and its allies have been urging Israel to be strategic and clear about its goals if and when it launches a ground invasion of Gaza, warning against a prolonged occupation and placing a particular emphasis on avoiding civilian casualties, according to US and Western officials.

    During the October 7 attack, Hamas militants killed more than 1,400 people, including civilians and soldiers, according to Israeli authorities. It was the most deadly attack by militants in Israel’s 75-year history and revealed a staggering intelligence failure by the country’s security forces.

    Israel has since responded by enacting a blockade on Gaza and launching a barrage of airstrikes into the Palestinian enclave, sparking a humanitarian crisis. Israeli airstrikes in Gaza have killed more than 4,100 people, according to the Palestinian health ministry.

    Biden suggested earlier Friday that Hamas’ attack on Israel was in part to derail US-backed efforts to normalize Israel-Saudi relations.

    “One of the reasons Hamas moved on Israel … they knew that I was about to sit down with the Saudis,” Biden told supporters at a campaign fundraiser in Washington, according to a pool report.

    “Guess what? The Saudis wanted to recognize Israel,” Biden said at the event, which was hosted at the home of a Democratic National Committee official in Washington. The president added that the Saudis were “about to recognize Israel.”

    The president has maintained in recent weeks that the effort to normalize relations between Israel and Saudi Arabia “is still alive” and remains crucial amid the ongoing conflict, though he has said “it’s going to take time to get done.”

    “The Saudis, and the Emiratis and other Arab nations understand that their security and stability is enhanced if there’s normalization of relations with Israel,” Biden told CBS News in an interview that aired Sunday, adding that “the direction of moving into the normalization makes sense for the Arab nations as well as Israel.”

    The war between Israel and Hamas has raised concerns that it could widen into a regional conflict that could snowball into an even greater geopolitical crisis. With US Secretary of State Antony Blinken’s trips to multiple Middle Eastern countries, including Saudi Arabia, and Biden’s visit to Israel this week, the administration has attempted to make clear that they remain hopeful and committed to a normalization deal.

    A senior US official told CNN last month that Biden and Netanyahu discussed normalization efforts “in some depth” during a September meeting. Netanyahu and Saudi Crown Prince Mohammed bin Salman expressed optimism that they were close to reaching a deal with Netanyahu telling CNN last month that the agreement would “change the Middle East forever” and would be a “quantum leap” in the region.

    However, when repeatedly asked by CNN’s Kaitlan Collins at the time what kind of concessions he would make to get the deal across the line, Netanyahu refused to answer. MBS had previously said a deal to recognize Israel would have to “ease the life of the Palestinians” though he stopped short of calling for an independent Palestinian state to be established, which has been the kingdom’s official position for decades.

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  • Microsoft gives ground on streaming in bid to remove UK block on Activision deal | CNN Business

    Microsoft gives ground on streaming in bid to remove UK block on Activision deal | CNN Business

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    London
    CNN
     — 

    Microsoft has made a major concession to UK authorities in a bid to remove the last remaining regulatory obstacle to its huge takeover of Activision Blizzard.

    The companies have submitted a new proposal to the UK antitrust watchdog — the only regulator worldwide standing in the way of the $69 billion deal — that would see Activision’s (ATVI) cloud streaming rights outside the European Union and three other European countries sold to a rival, Ubisoft Entertainment. Microsoft President Brad Smith said in a blog post Tuesday that the companies believe the new proposal “presents a substantially different transaction” for the CMA to consider than its previous merger agreement.

    “We believe that this development is positive for players, the progression of the cloud game streaming market, and for the growth of our industry,” Smith said.

    The restructured deal, announced by the UK Competition and Markets Authority Tuesday, follows a decision by the CMA to block the acquisition on its original terms. That move put it at odds with EU regulators, which approved the plan in May. A US federal court also said in July that it would not block the deal from closing.

    CMA chief executive Sarah Cardell said the regulator would now consider the new proposal.

    “Our goal has not changed — any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.”

    Under the restructured deal, Ubisoft — a French video game developer — will be able to license out Activision’s content to any cloud gaming provider outside the European Economic Area, including in the United Kingdom. Shares in Ubisoft jumped 7% in Paris Tuesday.

    “This will allow gamers to access Activision’s games in different ways, including through cloud-based multigame subscription services,” Cardell said.

    Microsoft and Activision agreed last month to extend their merger deadline by three months to October 18, to allow more time to come to an agreement with the CMA. October 18 is now also the statutory deadline for a CMA decision on the new merger proposal, and Microsoft said it expects the agency’s review process to be completed ahead of that date.

    Microsoft (MSFT) announced the planned acquisition of Activision early last year. The transaction was valued at $69 billion at the time, making it one of the tech industry’s largest deals.

    Activision Blizzard is one of the world’s biggest video game developers, producing games such as “Candy Crush,” “Call of Duty,” “World of Warcraft” and “Overwatch.”

    –CNN’s Clare Duffy contributed to this report.

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  • China’s top chipmaker may be in hot water as US lawmakers call for further sanctions after Huawei ‘breakthrough’ | CNN Business

    China’s top chipmaker may be in hot water as US lawmakers call for further sanctions after Huawei ‘breakthrough’ | CNN Business

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    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Shares in SMIC, China’s largest contract chipmaker, plunged on Thursday, after two US congressmen called on the White House to further restrict export sales to the company.

    The comments came after Huawei Technologies introduced the Mate 60 Pro, a Chinese smartphone powered by an advanced chip that is believed to have been made by SMIC.

    Last week’s launch shocked industry experts who didn’t understand how SMIC, which is headquartered in Shanghai, would have the ability to manufacture such a chip following sweeping efforts by the United States to restrict China’s access to foreign chip technology.

    TechInsights, a research organization based in Canada specializing in semiconductors, revealed shortly after the launch that the smartphone contained a new 5G Kirin 9000s processor developed specifically for Huawei by SMIC.

    This is a “big tech breakthrough for China,” Jefferies analysts said Tuesday in a research note.

    The development has fueled fears among analysts that the US-China tech war is likely to accelerate in the near future.

    US representative Mike Gallagher, chair of the US House of Representatives committee on China, called on the US Commerce Department on Wednesday to end all technology exports to Huawei and SMIC, according to Reuters.

    Gallagher was quoted as saying SMIC may have violated US sanctions, as this chip likely could not be produced without US technology.

    “The time has come to end all US technology exports to both Huawei and SMIC to make clear any firm that flouts US law and undermines our national security will be cut off from our technology,” he said.

    Shares in SMIC, which stands for Semiconductor Manufacturing International Corporation, sank 8.3% in Shanghai and 7.6% in Hong Kong on Thursday. Hua Hong Semiconductor, China’s second largest chip foundry, tumbled 5.8%.

    Texas Republican Michael McCaul, who chairs the House Foreign Affairs Committee, was quoted by Reuters as saying he was concerned about the possibility of China trying to “get a monopoly” in the manufacture of less-advanced computer chips.

    “We talked a lot about advanced semiconductor chips, but we also need look at legacy,” he reportedly said, referring to older computer chip technology which does not fall under export controls.

    “I think China is trying to get a monopoly on the market share of legacy semiconductor chips as well. And I think that’s a part of the discussion we’ll be having,” he said.

    Chinese state media have touted the development as a sign the country had successfully “broken US sanctions” and “achieved technological independence” in advanced chipmaking.

    Meme makers on the Chinese internet have even crowned US Commerce Secretary Gina Raimondo the unofficial brand ambassador for the Mate 60 series.

    The memes poke fun at the idea that that US sanctions, which are implemented and enforced by the US Commerce department, may have indirectly led to the launch of the new phone as China’s homegrown firms had to work with the available technology.

    Raimondo visited China last week, when the phone was launched. The memes have gone viral online and been reported on by state broadcaster CCTV.

    Before Thursday, SMIC’s shares in Hong Kong had rallied more than 20% within two weeks due to investor optimism. Huahong Semiconductor jumped 11%.

    CNN has reached out to Gallagher’s and McCaul’s offices for comment, but has yet to receive a response.

    Huawei was added to a blacklist in May 2019 by the US Commerce Department over national security concerns. That means companies have to apply for US export licenses to supply technology to Huawei.

    SMIC was also put on the same list in 2020, as US officials were concerned it could use American technology to aid the Chinese military. SMIC has denied having any relationship with the Chinese military.

    “The fact that China has achieved a big breakthrough in [semiconductor] tech will likely create more debate in the US about the effectiveness of sanctions,” said the Jefferies analysts.

    They expect the Biden administration to tighten chips ban on China, which was introduced in October 2022, in the next few months, further limiting China’s access to advanced US semiconductors.

    “Overall the US-China tech war is likely to escalate,” they said.

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  • Zelensky urges Trump to share Ukraine peace plan but says he won’t give territory to Russia | CNN Politics

    Zelensky urges Trump to share Ukraine peace plan but says he won’t give territory to Russia | CNN Politics

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    CNN
     — 

    Volodymyr Zelensky urged Donald Trump to share his peace plans publicly if the former US president has a way to end the war between Ukraine and Russia – but the Ukrainian president cautioned in an interview Tuesday that any peace plan where Ukraine gives up territory would be unacceptable.

    “He can publicly share his idea now, not waste time, not to lose people, and say, ‘My formula is to stop the war and stop all this tragedy and stop Russian aggression,’” Zelensky told CNN’s Wolf Blitzer, following his speech Tuesday at the United Nations General Assembly. “And he said, how he sees it, how to push Russian from our land. Otherwise, he’s not presenting the global idea of peace.”

    The Ukrainian president added: “So (if) the idea is how to take the part of our territory and to give Putin, that is not the peace formula.”

    Trump, the front-runner for the 2024 Republican presidential nomination, has claimed that he would be able to cut a deal with Zelensky and Russian President Vladimir Putin to end the war in Ukraine within 24 hours. Pressed Sunday on NBC’s “Meet the Press” about whether the deal would let Putin keep the land he’s taken, Trump said, “No, no. I’d make a fair deal for everybody. Nope, I’d make it fair.”

    Trump, asked at the time whether it would be a win for Putin, said, “You know, that’s something that could have been negotiated. Because there were certain parts, Crimea and other parts of the country, that a lot of people expected could happen. You could have made a deal. So they could have made a deal where there’s lesser territory right now than Russia’s already taken, to be honest.”

    Zelensky’s trip to the United Nations comes as Ukraine is facing its stiffest headwinds in the US to date over support for the war. A faction of the House GOP conference is openly hostile to providing Ukraine with any additional military aid, and it remains unclear whether House Speaker Kevin McCarthy will be willing to sign off on more funding.

    In the interview, Zelensky gave a positive assessment of Ukraine’s ongoing counteroffensive, which has sparked concerns that it’s failing to achieve expected results. And he reiterated Ukraine’s desire to obtain long-range missiles from the US, which President Joe Biden is still considering, saying it would be “a loss” for Ukraine if they do not receive them.

    “We are on the finishing line, I’m sure of that,” Zelensky said.

    Zelensky told Blitzer that he’s planning to meet with McCarthy when he travels to Washington later this week. Asked about those skeptical of offering more funding to Ukraine, Zelensky said that it was difficult for those who have not seen war up close to compare domestic problems like civil rights or energy to the existential threat facing a country under attack.

    “It’s so difficult to understand when you are in war, and when you are not in war,” Zelensky said. “Even when you come to the war, to the country which is in war, when you come to one day, you can understand more than you live, you hear, you think, you read. No, you can’t compare. It’s different situation. That’s why I’m thinking we can’t compare these challenges.”

    Biden last month asked Congress to approve an additional $24 billion in emergency spending for Ukraine and other international needs. While there’s bipartisan support for the funding package in the Senate, there’s no sign yet that the Republican-led House will play ball.

    Following his speech Tuesday at the UN General Assembly, Zelensky is traveling to Washington, DC, where he will hold talks with Biden at the White House, along with a visit to Capitol Hill. Zelensky addressed a joint meeting of Congress in a surprise appearance last December.

    Zelensky’s trip to the Capitol this week gives him the chance to make a personal pitch to skeptical lawmakers to approve more aid for the war. The Ukrainian leader is slated to speak at an all-senators meeting, though a similar meeting is not planned for the House.

    McCarthy, who is expected to meet with Zelensky along with other House leaders, declined Tuesday to commit to more funding for Ukraine.

    “Was Zelensky elected to Congress? Is he our president? I don’t think so. I have questions for where’s the accountability on the money we’ve already spent? What is this the plan for victory?” the California Republican said.

    ‘Nobody knows’

    Asked whether a major breakthrough was possible this year in Ukraine’s military counteroffensive, Zelensky said, “I think nobody knows, really.”

    “But I think that we will have more success,” he said, noting gains Ukraine has made in the east.

    Zelensky said he remained focus on obtaining more long-range missiles from the US, arguing that Ukraine did not want them to target Russia but to keep the battlefield capabilities level between the two sides.

    Biden is expected to make a final decision soon on sending the long-range Army Tactical Missile Systems, also known as ATACMS, CNN reported earlier this month.

    “It would be a loss for us” if the weapons are not provided, Zelensky said, adding it would result in “more casualties on the battlefield and elsewhere.”

    He also reiterated the need for more air defense systems, particularly the US-made Patriot air defense system, saying they were needed to help protect civilian areas.

    Zelensky downplayed tensions between the US and Ukrainian officials over Ukraine’s military strategy in Russian-occupied Crimea, when asked about skepticism from officials in Washington over Ukraine ramping up missile strikes to try to disrupt Russian logistics and resupply efforts.

    “We think the same way,” he said.

    Still, Zelensky defended the strategy.

    “Temporary-occupied Crimea – it’s a place they store weapons to kill our civilians,” he said. “They’re shooting from Crimea into our territory. And of course, we have to see where their rockets are coming from, and we have to basically deal with it.”

    This story has been updated with additional details.

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  • Indonesia bans e-commerce transactions on social media in major blow to TikTok | CNN Business

    Indonesia bans e-commerce transactions on social media in major blow to TikTok | CNN Business

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    Jakarta
    Reuters
     — 

    Indonesia has banned e-commerce transactions on social media platforms, the trade minister said on Wednesday, in a blow to short video app TikTok, which is doubling down on Southeast Asia’s biggest economy to boost its e-commerce business.

    The government said the move, which takes effect immediately, is aimed at protecting offline merchants and marketplaces, adding that predatory pricing on social media platforms is threatening small and medium-sized enterprises.

    The move comes just three months after TikTok pledged to invest billion of dollars in Southeast Asia, mainly in Indonesia, over the next few years in a major push to build its e-commerce platform TikTok Shop.

    TikTok, owned by China’s ByteDance, has 125 million active monthly users in Indonesia and has been looking to translate the large user base into a major e-commerce revenue source.

    A TikTok Indonesia spokesperson said it would pursue a constructive path forward and was “deeply concerned” with the announcement, “particularly how it would impact the livelihoods of the 6 million” local sellers active on TikTok Shop.

    Indonesia Trade Minister Zulkifli Hasan on Wednesday told reporters that the regulation is intended to ensure “fair and just” business competition, adding that it was also intended to ensure data protection of users.

    He warned of letting social media become an e-commerce platform, shop and bank all at the same time.

    The new regulation also requires e-commerce platforms in Indonesia to set a minimum price of $100 for certain items that are directly purchased from abroad, according to the regulation document reviewed by Reuters, and that all products offered should meet local standards.

    Zulkifli said TikTok had one week to comply with the regulation or face the threat of closure. Indonesia Deputy Trade Minister Jerry Sambuaga earlier this month named TikTok’s live streaming features as an example of people selling goods on social media.

    Research firm BMI said TikTok would be the only business affected by the transaction ban and the move was unlikely to harm the digital marketplace industry’s growth.

    Indonesia’s e-commerce market is dominated by the likes of homegrown tech firm GoTo’s Tokopedia, Sea’s Shopee and Chinese e-commerce giant Alibaba’s Lazada.

    E-commerce transactions in Indonesia amounted to nearly $52 billion last year and of that, 5% took place on TikTok, according to data from consultancy Momentum Works.

    Indonesia is among the few markets where TikTok has launched TikTok Shop, as it seeks to leverage its large user base in the country.

    Its 125 million active monthly users in Indonesia is almost on par with its user figures for Europe and behind US users of more than 150 million. TikTok launched an online shopping service in the United States earlier this month.

    Reactions from retailers were mixed.

    Fahmi Ridho, a vendor selling clothes on TikTok, said the platform was a way for stores to recover from the blow dealt by the Covid-19 pandemic.

    “Sales don’t have to be necessarily through [brick and mortar] shops, you can do it online or wherever,” he said “Everything will still have a portion.”

    But Edri, who goes by one name only and sells clothes at a major wholesale market in Jakarta, agreed with the regulation and stressed that there should be limits on items sold online.

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