Venezuela's Top Court Issues a $10 Million Fine for TikTok over Allegedly Deadly Video Challenges

The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake
The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake
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Venezuela's Top Court Issues a $10 Million Fine for TikTok over Allegedly Deadly Video Challenges

The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake
The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake

Venezuela’s Supreme Court on Monday issued a $10 million fine against TikTok for “not implementing measures” to prevent viral video challenges that have allegedly led to the deaths of three Venezuelan children recently.

Judge Tania D’Amelio said TikTok had acted in a negligent manner and gave it eight days to pay the fine, while also ordering the video service company to open an office in Venezuela that would supervise content so that it complies with local laws.

The judge did not explain how Venezuela would force TikTok, whose parent company is based in China, to pay the fine. Venezuela has blocked dozens of websites in previous years for not complying with regulations set by its telecommunications commission.

TikTok did not immediately respond to requests for comment from The Associated Press.

In November, Venezuelan President Nicolas Maduro blamed TikTok for the death of a 12-year-old girl who allegedly died after participating in a TikTok challenge that involved taking tranquilizer pills and not falling asleep.

Venezuela’s Education Minister Hector Rodriguez also said last month that a 14-year-old died after taking part in a TikTok challenge that involved sniffing substances. And on Nov. 21, Venezuela’s attorney general blamed video challenges on TikTok for the death of a third child.

Dozens of radio stations and television channels have been taken off the air in Venezuela under Maduro over their news coverage. More than 60 websites belonging to human rights groups and news companies were blocked at different times this year, according to VE Sin Filtro, a group that tracks media freedoms in the South American country.

In August, Venezuela banned the social media platform X as thousands of Venezuelans took to the streets t o protest the re-election of Maduro.

The Venezuelan government initially banned X for 10 days, after Maduro accused its owner Elon Musk of using the social media platform to “orchestrate attacks against Venezuela.” Musk had accused Maduro of rigging the July 28 election, which the United Nations and the Carter Center, an organization that monitors elections around the world, said did not meet international standards.

X can now be accessed on privately run internet providers in Venezuela, but it is still blocked by Venezuela’s state owned internet provider Movilnet.



Musk’s Social Media Firm X Bought by His AI Company, Valued at $33 Billion

 xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
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Musk’s Social Media Firm X Bought by His AI Company, Valued at $33 Billion

 xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)

Elon Musk's xAI has acquired X in a deal that values the social media platform at $33 billion and allows the value of his artificial intelligence firm to be shared with his co-investors in the company formerly known as Twitter.

The deal could also help xAI's ability to train its chatbot known as Grok.

"xAI and X's futures are intertwined," Musk, who also heads automaker Tesla and SpaceX, wrote in a post on X: "Today, we officially take the step to combine the data, models, compute, distribution and talent."

He said the combination values "xAI at $80 billion and X at $33 billion ($45B less $12B debt)".

Representatives for X and xAI did not immediately respond to requests for comment. Much of the deal's specifics remain unclear, such as how X's leaders would be integrated in the new firm or whether there would be regulatory scrutiny.

Musk, the world's wealthiest man, is also a close ally of US President Donald Trump and heads the Department of Government Efficiency.

D.A. Davidson analyst Gil Luria said the price tag for X of $45 billion when debt was included was not a coincidence. "It is $1 billion higher than the take-private transaction for Twitter in 2022."

An investor in xAI who declined to be identified said they were not surprised by the deal, viewing it as Musk consolidating his leadership and management at his own companies.

Musk did not ask investors for approval but told them that the two companies had been collaborating closely and the deal would drive deeper integration with Grok, the investor said.

OPENAI RIVALRY

Musk's xAI startup was launched less than two years ago and recently raised $10 billion in a funding round that valued the company at $75 billion, according to a media report.

It competes with the likes of Microsoft-backed OpenAI as well as with Chinese startup DeepSeek.

In February, Musk, 53, made a $97.4 billion bid with a consortium for OpenAI, which was rejected and he has sued to prevent the ChatGPT maker from converting from a non-profit to a for-profit business. A judge this month denied Musk's request for a preliminary injunction that would prevent the changeover.

As competition in AI intensifies, xAI has been ramping up its data center capacity to train more advanced models, and its supercomputer cluster in Memphis, Tennessee, called "Colossus," is touted as the largest in the world.

xAI introduced Grok-3, the latest iteration of its chatbot, in February.

The X platform could serve to further distribute xAI products, while also providing a real-time feed of users' musings, screenshots and other data.

After buying Twitter, Musk gutted the company's workforce, prompting advertisers to flee the platform and a rapid decline in revenue. Recently, brands have been returning to X as Musk's influence in the Trump administration grows.

The seven banks that extended $13 billion in loans to Musk to buy X kept the debt on their books for two years until they were able to sell it all at once last month, according to a source familiar with the transactions.

This was made possible after a surge in investor interest for exposure to AI companies along with X's improved operating performance over the previous two quarters, among other factors, according to two people familiar with the matter.

After the merger, investors who bought the debt from the banks will profit, said Espen Robak, founder of Pluris Valuation Advisors, which specializes in illiquid assets. "For sure the debt is worth more now, if not fully paid off."

Separately, a US judge on Friday rejected a bid by Musk to dismiss a lawsuit claiming he had defrauded former Twitter shareholders by waiting too long to disclose his initial investment in the company.