TikTok Creators Fear Economic Blow of US Ban

A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States. OLIVIER DOULIERY / AFP/File
A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States. OLIVIER DOULIERY / AFP/File
TT

TikTok Creators Fear Economic Blow of US Ban

A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States. OLIVIER DOULIERY / AFP/File
A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States. OLIVIER DOULIERY / AFP/File

Ayman Chaudhary turned her love for reading into a living on TikTok, posting video snippets about books like those banned in schools in ultra-conservative parts of the United States.
Now the online platform she relies on to support her family is poised to be banned in what entrepreneurs using TikTok condemn as an attack on their livelihoods, said AFP.
"It's so essential to small businesses and creators; it's my full-time job," the 23-year-old Chicago resident told AFP.
"It makes me really worried that I live in a country that would pass bans like these instead of focusing on what's actually important, like gun control and healthcare and education."
A new US law put TikTok's parent, Chinese tech giant ByteDance, on a nine-month deadline to divest the hugely popular video platform or have it banned in the United States.
US lawmakers argued that TikTok can be used by the Chinese government for espionage and propaganda as long as it is owned by ByteDance.
"Everybody who's involved in deciding whether or not this platform is going to get banned is turning a blind eye to how it's going to affect all of the small businesses," said Bilal Rehman of Texas.
His @bilalrehmanstudio TikTok account, which playfully promotes his company's interior design projects, has some 500,000 followers.
"They don't really understand social media and how it works," the 24-year-old added.
TikTok has gone from a novelty to a necessity for many US small businesses, according to an Oxford Economics study backed by the platform.
TikTok fuels growth for more than seven million businesses in the United States, helping generate billions of dollars and supporting more than 224,000 jobs, the study determined.
"It's become such a huge part of our economy that taking that away is going to be devastating to millions of people," Rehman said of TikTok.
Chaudhary took to TikTok to share her passion for reading in early 2020 while enduring Covid-19 lockdowns.
"I made a handful of videos and, long story short, one went viral," Chaudhary said.
Opportunities to make money from sponsors or advertising came as her audience grew, and posting on her @aymansbooks TikTok account became a job.
She saw books she extolled snapped up by readers, as she shined attention on titles banned from schools or libraries in parts of the country.
Unique vibe
A TikTok ban would be a particularly hard blow to businesses just starting out, according to eMarketer analyst Jasmine Enberg.
"Social media has democratized the commerce landscape, and TikTok really supercharged that," Enberg told AFP.
"It's become a crucial platform for many small businesses, especially those that are in niche industries or sell quirky products."
One factor setting TikTok apart from rival platforms is the potential for videos to be spread quickly by a highly engaged audience, according to Enberg.
"The potential to be discovered on TikTok is really unparalleled, and that's largely thanks to its algorithm as well as the entertaining kind of content that it hosts," she said.
A young generation is using TikTok as a search engine of sorts, making queries as they might on Google and seeing what the algorithm serves up, said SOCi director of market insights Damian Rollison.
"It feels like it has been created by your peers, so they're telling you the real deal about whatever the topic might be," Rollison said of the trend.
TikTok lovers say it has a unique style that will be missed in the case of a ban.
"There is definitely a different vibe on TikTok versus YouTube or Instagram," said Chaudhary.
"TikTok has a lot more humor in it and a lot more creativity than I see happening on Instagram."
"My favorite part about TikTok is, it feels almost like you're on a FaceTime call with your friend," Rehman said.
"It feels really raw and authentic."
Rollison advised businesses relying on TikTok to make contingency plans in event of a ban, sticking with short-form video, given the appetite for such content.
"The demand signals are so powerful amongst younger users that I believe the usage patterns are going to survive any of the outcomes," Rollison said.
"Learning that ecosystem is not only a useful but even critical strategy."



Nvidia, Joining Big Tech Deal Spree, to License Groq Technology, Hire Executives

The Nvidia logo is seen on a graphic card package in this illustration created on August 19, 2025. (Reuters)
The Nvidia logo is seen on a graphic card package in this illustration created on August 19, 2025. (Reuters)
TT

Nvidia, Joining Big Tech Deal Spree, to License Groq Technology, Hire Executives

The Nvidia logo is seen on a graphic card package in this illustration created on August 19, 2025. (Reuters)
The Nvidia logo is seen on a graphic card package in this illustration created on August 19, 2025. (Reuters)

Nvidia has agreed to license chip technology from startup Groq and hire away its CEO, a veteran of Alphabet's Google, Groq said in a blog post on Wednesday.

The deal follows a familiar pattern in recent years where the world's biggest technology firms pay large sums in deals with promising startups to take their technology and talent but stop short of formally acquiring the target.

Groq specializes in what is known as inference, where artificial intelligence models that have already been trained respond to requests from users. While Nvidia dominates the market for training AI models, it faces much more competition in inference, where traditional rivals such as Advanced Micro Devices have aimed ‌to challenge it ‌as well as startups such as Groq and Cerebras Systems.

Nvidia ‌has ⁠agreed to a "non-exclusive" ‌license to Groq's technology, Groq said. It said its founder Jonathan Ross, who helped Google start its AI chip program, as well as Groq President Sunny Madra and other members of its engineering team, will join Nvidia.

A person close to Nvidia confirmed the licensing agreement.

Groq did not disclose financial details of the deal. CNBC reported that Nvidia had agreed to acquire Groq for $20 billion in cash, but neither Nvidia nor Groq commented on the report. Groq said in its blog post that it will continue to ⁠operate as an independent company with Simon Edwards as CEO and that its cloud business will continue operating.

In similar recent deals, Microsoft's ‌top AI executive came through a $650 million deal with a startup ‍that was billed as a licensing fee, and ‍Meta spent $15 billion to hire Scale AI's CEO without acquiring the entire firm. Amazon hired ‍away founders from Adept AI, and Nvidia did a similar deal this year. The deals have faced scrutiny by regulators, though none has yet been unwound.

"Antitrust would seem to be the primary risk here, though structuring the deal as a non-exclusive license may keep the fiction of competition alive (even as Groq’s leadership and, we would presume, technical talent move over to Nvidia)," Bernstein analyst Stacy Rasgon wrote in a note to clients on Wednesday after Groq's announcement. And Nvidia CEO Jensen Huang's "relationship with ⁠the Trump administration appears among the strongest of the key US tech companies."

Groq more than doubled its valuation to $6.9 billion from $2.8 billion in August last year, following a $750 million funding round in September.

Groq is one of a number of upstarts that do not use external high-bandwidth memory chips, freeing them from the memory crunch affecting the global chip industry. The approach, which uses a form of on-chip memory called SRAM, helps speed up interactions with chatbots and other AI models but also limits the size of the model that can be served.

Groq's primary rival in the approach is Cerebras Systems, which Reuters this month reported plans to go public as soon as next year. Groq and Cerebras have signed large deals in the Middle East.

Nvidia's Huang spent much of his biggest keynote speech of 2025 arguing that ‌Nvidia would be able to maintain its lead as AI markets shift from training to inference.


Italy Watchdog Orders Meta to Halt WhatsApp Terms Barring Rival AI Chatbots

The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters)
The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters)
TT

Italy Watchdog Orders Meta to Halt WhatsApp Terms Barring Rival AI Chatbots

The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters)
The logo of Meta is seen at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters)

Italy's antitrust authority (AGCM) on Wednesday ordered Meta Platforms to suspend contractual terms ​that could shut rival AI chatbots out of WhatsApp, as it investigates the US tech group for suspected abuse of a dominant position.

A spokesperson for Meta called the decision "fundamentally flawed," and said the emergence of AI chatbots "put a strain on our systems that ‌they were ‌not designed to support".

"We ‌will ⁠appeal," ​the ‌spokesperson added.

The move is the latest in a string by European regulators against Big Tech firms, as the EU seeks to balance support for the sector with efforts to curb its expanding influence.

Meta's conduct appeared capable of restricting "output, market ⁠access or technical development in the AI chatbot services market", ‌potentially harming consumers, AGCM ‍said.

In July, the ‍Italian regulator opened the investigation into Meta over ‍the suspected abuse of a dominant position related to WhatsApp. It widened the probe in November to cover updated terms for the messaging app's business ​platform.

"These contractual conditions completely exclude Meta AI's competitors in the AI chatbot services ⁠market from the WhatsApp platform," the watchdog said.

EU antitrust regulators launched a parallel investigation into Meta last month over the same allegations.

Europe's tough stance - a marked contrast to more lenient US regulation - has sparked industry pushback, particularly by US tech titans, and led to criticism from the administration of US President Donald Trump.

The Italian watchdog said it was coordinating with the European ‌Commission to ensure Meta's conduct was addressed "in the most effective manner".


Amazon Says Blocked 1,800 North Koreans from Applying for Jobs

Amazon logo (Reuters)
Amazon logo (Reuters)
TT

Amazon Says Blocked 1,800 North Koreans from Applying for Jobs

Amazon logo (Reuters)
Amazon logo (Reuters)

US tech giant Amazon said it has blocked over 1,800 North Koreans from joining the company, as Pyongyang sends large numbers of IT workers overseas to earn and launder funds.

In a post on LinkedIn, Amazon's Chief Security Officer Stephen Schmidt said last week that North Korean workers had been "attempting to secure remote IT jobs with companies worldwide, particularly in the US".

He said the firm had seen nearly a one-third rise in applications by North Koreans in the past year, reported AFP.

The North Koreans typically use "laptop farms" -- a computer in the United States operated remotely from outside the country, he said.

He warned the problem wasn't specific to Amazon and "is likely happening at scale across the industry".

Tell-tale signs of North Korean workers, Schmidt said, included wrongly formatted phone numbers and dodgy academic credentials.

In July, a woman in Arizona was sentenced to more than eight years in prison for running a laptop farm helping North Korean IT workers secure remote jobs at more than 300 US companies.

The scheme generated more than $17 million in revenue for her and North Korea, officials said.

Last year, Seoul's intelligence agency warned that North Korean operatives had used LinkedIn to pose as recruiters and approach South Koreans working at defense firms to obtain information on their technologies.

"North Korea is actively training cyber personnel and infiltrating key locations worldwide," Hong Min, an analyst at the Korea Institute for National Unification, told AFP.

"Given Amazon's business nature, the motive seems largely economic, with a high likelihood that the operation was planned to steal financial assets," he added.

North Korea's cyber-warfare program dates back to at least the mid-1990s.

It has since grown into a 6,000-strong cyber unit known as Bureau 121, which operates from several countries, according to a 2020 US military report.

In November, Washington announced sanctions on eight individuals accused of being "state-sponsored hackers", whose illicit operations were conducted "to fund the regime's nuclear weapons program" by stealing and laundering money.

The US Department of the Treasury has accused North Korea-affiliated cybercriminals of stealing over $3 billion over the past three years, primarily in cryptocurrency.