EU Bows to Pressure on Loosening AI, Privacy Rules

Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File
Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File
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EU Bows to Pressure on Loosening AI, Privacy Rules

Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File
Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File

The European Union is set next week to kickstart a rollback of landmark rules on artificial intelligence and data protection that face powerful pushback on both sides of the Atlantic.

Part of a bid to slash red tape for European businesses struggling against US and Chinese rivals, the move is drawing accusations that Brussels is putting competitiveness ahead of citizens' privacy and protection, AFP said.

Brussels denies that pressure from the US administration influenced its push to "simplify" the bloc's digital rules, which have drawn the wrath of President Donald Trump and American tech giants.

But the European Commission says it has heard the concerns of EU firms and wants to make it easier for them to access users' data for AI development -- a move critics attack as a threat to privacy.

One planned change could unite many Europeans in relief however: the EU wants to get rid of those pesky cookie banners seeking users' consent for tracking on websites.

According to EU officials and draft documents seen by AFP, which could change before the November 19 announcement, the European Commission will propose:

-- a one-year pause in the implementation of parts of its AI law

-- overhauling its flagship data protection rules, which privacy defenders say will make it easier for US Big Tech to "suck up Europeans' personal data".

The bloc's cornerstone General Data Protection Regulation (GDPR) enshrined users' privacy from 2018 and influenced standards around the world.

The EU says it is only proposing technical changes to streamline the rules, but rights activists and EU lawmakers paint a different picture.

The EU executive proposes to narrow the definition of personal data, and allow companies to process such data to train AI models "for purposes of a legitimate interest", a draft document shows.

Reaction to the leaks has been swift -- and strong.

"Unless the European Commission changes course, this would be the biggest rollback of digital fundamental rights in EU history," 127 groups, including civil society organizations and trade unions, wrote in a letter on Thursday.

Online privacy activist Max Schrems warned the proposals "would be a massive downgrading of Europeans' privacy" if they stay the same.

An EU official told AFP that Brussels is also expected to propose a one-year delay on implementing many provisions on high-risk AI, for example, models that can pose dangers to safety, health or citizens' fundamental rights.

Instead of taking effect next year, they would apply from 2027.

This move comes after heavy pressure from European businesses and US Big Tech.

Dozens of Europe's biggest companies, including France's Airbus and Germany's Lufthansa and Mercedes-Benz, called for a pause in July on the AI law which they warn risks stifling innovation.

Commission president Ursula von der Leyen faces a battle ahead as the changes will need the approval of both the EU parliament and member states.

Her conservative camp's main coalition allies have raised the alarm, with the socialists saying they oppose any delay to the AI law, and the centrists warning they would stand firm against any changes that undermine privacy.

Noyb, a campaign group founded by Schrems, published a scathing takedown of the EU's plans for the GDPR and what they entail.

The EU has pushed back against claims that Brussels will reduce privacy.

"I can confirm 100 percent that the objective... is not to lower the high privacy standards we have for our citizens," EU spokesman for digital affairs, Thomas Regnier, said.

But there are fears that more changes to digital rules are on the way.

The proposals are part of the EU executive's so-called simplification packages to remove what they describe as administrative burdens.

Brussels rejects any influence from Trump -- despite sustained pressure since the first weeks of the new US administration, when Vice President JD Vance railed against the "excessive regulation" of AI.

This "started before the mandate of the president of the US", chief commission spokeswoman Paula Pinho said this week.

Calls for changes to AI and data rules have been growing louder in Europe.

A major report last year by Italian ex-premier Mario Draghi also warned that data rules could hamper European businesses' AI innovation.



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)
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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)
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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)
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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.