TikTok Warns of Broader Consequences if US Supreme Court Allows Ban

US, Chinese flags, TikTok logo and gavel are seen in this illustration taken January 8, 2025. REUTERS/Dado Ruvic/Illustration
US, Chinese flags, TikTok logo and gavel are seen in this illustration taken January 8, 2025. REUTERS/Dado Ruvic/Illustration
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TikTok Warns of Broader Consequences if US Supreme Court Allows Ban

US, Chinese flags, TikTok logo and gavel are seen in this illustration taken January 8, 2025. REUTERS/Dado Ruvic/Illustration
US, Chinese flags, TikTok logo and gavel are seen in this illustration taken January 8, 2025. REUTERS/Dado Ruvic/Illustration

The lawyer for TikTok and its Chinese parent company ByteDance offered a warning during Supreme Court arguments over a law that would compel the sale of the short-video app or ban it in the United States: If Congress could do this to TikTok, it could come after other companies, too. The law, which was the subject of arguments before the nine justices on Friday, sets a Jan. 19 deadline for ByteDance to sell the popular social media platform or face a ban on national security grounds. The companies have sought, at the very least, a delay in implementation of the law, which they say violates the US Constitution's First Amendment protection against government abridgment of free speech, Reuters said.
Noel Francisco, representing TikTok and ByteDance, argued that Supreme Court endorsement of this law could enable statutes targeting other companies on similar grounds.
"AMC movie theaters used to be owned by a Chinese company. Under this theory, Congress could order AMC movie theaters to censor any movies that Congress doesn't like or promote any movies that Congress wanted," Francisco told the justices.
The justices signaled through their questions during the arguments that they were inclined to uphold the law, although some expressed serious concerns about its First Amendment implications.
TikTok is a platform used by about 170 million people in the United States, roughly half the country's population. Congress passed the measure last year with overwhelming bipartisan support, as lawmakers cited the risk of the Chinese government exploiting TikTok to spy on Americans and carry out covert influence operations.
Jeffrey Fisher, the lawyer representing TikTok content creators who also have challenged the law, noted during the Supreme Court arguments that Congress with this measure was focusing on TikTok and not major Chinese online retailers including Temu.
"Would a Congress (that is) really worried about these very dramatic risks leave out an e-commerce site like Temu that has 70 million Americans using it?" Fisher asked. "It's very curious why you just single out TikTok alone and not other companies with tens of millions of people having their own data taken, you know, in the process of engaging with those websites and equally, if not more, available to Chinese control." Democratic President Joe Biden signed the measure into law and his administration is defending it in this case. The deadline for divestiture is just one day before Republican Donald Trump, who opposes the ban, takes office as Biden's successor.
'FOREIGN ADVERSARIES'
Solicitor General Elizabeth Prelogar, arguing for the Biden administration in defending the law, said it was crucial that it take effect on Jan. 19 as scheduled in order to force ByteDance to act on divestiture.
"Foreign adversaries do not willingly give up their control over this mass communications channel in the United States," Prelogar said.
"When push comes to shove, and these restrictions take effect, I think it will fundamentally change the landscape with respect to what ByteDance is willing to consider. And it might be just the jolt that Congress expected the company would need to actually move forward with the divestiture process," Prelogar said.
If the ban takes affect on Jan. 19, Apple and Alphabet's Google would no longer be able to offer TikTok for downloads for new users but existing users could still access the app. The US government and TikTok agree that app would degrade and eventually become unusable over time because companies would not be able to offer supporting services.
The Supreme Court also debated whether the possibility of TikTok being used for covert influence campaigns or propaganda purposes by China justified the banning it.
"Look, everybody manipulates content," Francisco told the court. "There are lots of people who think CNN, Fox News, the Wall Street Journal, the New York Times are manipulating their content. That is core protected speech." Trump on Dec. 27 urged the court to put a hold on the Jan. 19 deadline to give his incoming administration "the opportunity to pursue a political resolution of the questions at issue in the case."
Under the law, the US president has the power to extend the Jan. 19 deadline for 90 days, but under circumstances that do not appear to apply to the current situation in which ByteDance has made no apparent effort to sell TikTok's US assets. The law mandates that the president certify that significant progress has been made toward a sale, with binding legal agreements.
Regardless, Trump does not become president until after the deadline - though Francisco said "we might be in a different world" once Trump is back in the White House.
Justice Brett Kavanaugh asked Prelogar whether the president could "say that we're not going to enforce this law?"
"I think as a general matter, of course the president has enforcement discretion," Prelogar said.
"Again, that's one of the reasons why I think it makes perfect sense to issue a preliminary injunction here and simply buy everybody a little breathing space," Francisco said.



Pentagon Reaches Agreements with Top AI Companies, but Not Anthropic

FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
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Pentagon Reaches Agreements with Top AI Companies, but Not Anthropic

FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo

The Pentagon said on Friday it had reached agreements with seven AI companies to deploy their advanced capabilities on the Defense Department's classified networks as it seeks to broaden the range of AI providers working across the military.

The statement notably excludes Anthropic, which has been in dispute with the Pentagon over guardrails for the use of its artificial intelligence tools by the military, Reuters reported.

The Pentagon labeled the AI startup, which is widely used across the Department of Defense, a supply-chain risk earlier this year, barring its use by the Pentagon and its contractors.

SpaceX, OpenAI, Google, NVIDIA, Reflection, Microsoft and Amazon Web Services, several of which already work with the Pentagon, will be integrated into its Impact Levels 6 and 7 network environments giving more of the military access to their products, the Pentagon said in a statement.

By expanding the AI services offered to troops, who use it for planning, logistics, targeting and a bevy of other reasons to streamline huge operations and perform more quickly, the Pentagon said in its statement it will avoid "vendor lock", a likely nod to its overdependence on Anthropic. Pentagon staffers, former officials and IT contractors who work closely with the US military have told Reuters they were reluctant to give upAnthropic’s AI tools, which they view as superior to alternatives, despite orders to remove them over the next six months.

AI has become increasingly important for the US military. The Pentagon's main AI platform GenAI.mil has been used by over 1.3 million Defense Department personnel, the agency noted in its release, after five months of operation.

Google, which is already used within the Pentagon, has signed a deal enabling the Department of Defense to use its artificial intelligence models for classified work, a source told Reuters earlier this week.

ANTHROPIC STILL A 'RISK'

Defense Department Chief Technology Officer Emil Michael on Friday told CNBC that Anthropic remained a supply-chain risk, but that Mythos, the company’s artificial intelligence model with advanced cyber capabilities that created a stir among US officials and corporate America over its ability to supercharge hackers, was a “separate national security moment.”

While numerous companies and public and private entities have gained access to a Mythos preview product to help secure their IT infrastructure against future cyberattacks, it is not clear if the Pentagon is part of that program. US President Donald Trump said last week that Anthropic was "shaping up" in the eyes of his administration, opening the door for the AI company to reverse its blacklisting at the Pentagon.

Still, the falling out reinforced the need to diversify the supply of AI tools for the military, opening new opportunities for small defense industry artificial intelligence startups.


Apple Shares Rise on Strong Quarterly Sales in Run-up to CEO Change

The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
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Apple Shares Rise on Strong Quarterly Sales in Run-up to CEO Change

The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)

Apple shares jumped 3% in premarket trading ‌on Friday after the iPhone maker posted its strongest quarterly sales growth in more than four years, a show of momentum as it prepares to hand over the reins to a new CEO.

Its latest iPhone 17 Pro series and the newly launched low-cost MacBook Neo laptop are both drawing buyers at a time of low overall demand in the consumer electronics industry due to price hikes forced by the memory chip shortage.

Even though Apple's margins for the January-March quarter and its fiscal third-quarter forecast were above Wall Street estimates, outgoing CEO Tim Cook warned that ‌higher memory costs would ‌increasingly weigh on the business from June.

Limited ‌supply ⁠of the advanced ⁠processors for iPhone have already hampered Apple's ability to capitalize on strong demand. The chips are made by Taiwan's TSMC, the leading producer of AI processors.

Analysts say Apple's clout with long-time suppliers could position it better than rivals in securing memory chips but it might have to raise prices later this year.

"The key question will be deciding the perfect balance strategically ⁠between increasing prices and maintaining profitability or focusing on ‌gaining share by not increasing prices," said ‌Nabila Popal, a senior research director at IDC.

"I think Apple will increase ‌prices of the Pro and ProMax in upcoming fall launch, however ‌even if they don't, with the super high-end iPhone fold coming up - which we expect to be well over $2,200– will help balance some of the increased costs."

RESULTS BODE WELL FOR NEW CEO

The results, including a forecast of ‌14% to 17% sales growth for the current quarter that was above estimates, bode well for the company ⁠before hardware ⁠chief John Ternus takes over as CEO in September. Cook will stay on as executive chairman.

The change comes as Apple looks to close the gap with rivals Microsoft and Alphabet, which have moved faster to roll out AI features and infrastructure.

Investors are expected to get more details about its AI plans at it annual software developer conference in June.

Some analysts said Apple's decision to no longer aim to bring its net cash - cash minus debt - to a net neutral position may help it manage its financial position better in the AI era.

The move gives it greater balance-sheet flexibility, allowing it to absorb higher costs, support share repurchases and deploy capital more strategically, TD Cowen analysts said.


Meta Chief Doubles Down on AI Spending

FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026.  REUTERS/Mike Blake
FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026. REUTERS/Mike Blake
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Meta Chief Doubles Down on AI Spending

FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026.  REUTERS/Mike Blake
FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026. REUTERS/Mike Blake

Meta chief Mark Zuckerberg on Wednesday defended massive spending on artificial intelligence that dragged down shares despite strong earnings boosted by the technology.

The social networking colossus raised its capital expenditures for this year to a range of $125 billion to $145 billion without laying out exactly how that investment would translate into profit.

"The way to think about the investment is that we're making a bet (on) the individual things that people care about, and that people are going to be more important in the future," Meta chief Mark Zuckerberg said during an earnings call, as analysts pressed him about the company's heavy spending on AI.

He gave the example of a hot trend in "agentic" AI in which digital assistants handle computer tasks independently at the behest of people.

"There are a lot of agents out there that people are building for different things, and there aren't that many that I would want to give to my mother," Zuckerberg said.

"I think getting to that quality bar is something that I care about more than hitting a specific week for launching (a new product) or something like that."

Zuckerberg spotlighted a new Muse Spark AI model built by Meta's nascent "Superintelligence Lab", saying its technology will be put to work in Meta's offerings such as smartglasses and its advertising system.

"We are trying novel things," AFP quoted Zuckerberg as saying.

The AI investment from the company that owns Instagram and Facebook is not directly tied to a revenue stream as with Amazon, Microsoft and Google, which sell their AI-powered cloud services to clients worldwide.

Meta sent tremors on Wall Street by announcing in its earnings release that expenses at the tech giant notched up to $33.4 billion as it chases "superintelligence" through major infrastructure buys, and went on a hiring spree for top AI talent.

Shares dropped more than 6 percent even though the company topped forecasts with a profit of $26.8 billion on revenue of $56.3 billion in the quarter.

- Headwinds and scrutiny -

Adding to investor unease about Meta, chief financial officer Susan Li told analysts Meta continues to monitor legal and regulatory "headwinds" in the US and Europe, including social media addiction lawsuits.

"We continue to see scrutiny on youth related issues and have additional trials scheduled for this year in the US, which may ultimately result in a material loss," Li warned.

A Los Angeles jury in March found Meta and YouTube liable for harming a young woman because of an addictive design of their social media platforms, ordering the companies to pay millions of dollars in damages.

The verdict hands plaintiffs in more than a thousand similar pending cases significant leverage -- and signals to the tech industry that juries are prepared to hold social media companies accountable for the mental health toll of their design choices.