Donald Trump

even-trump-may-not-be-able-to-save-elon-musk-from-his-old-tweets

Even Trump may not be able to save Elon Musk from his old tweets

A loss in the investors’ and SEC’s suits could force Musk to disgorge any ill-gotten gains from the alleged scheme, estimated at $150 million, as well as potential civil penalties.

The SEC and Musk’s X (formerly Twitter) did not respond to Ars’ request to comment. Investors’ lawyers declined to comment on the ongoing litigation.

SEC purge may slow down probes

Under the Biden administration, the SEC alleged that “Musk’s violation resulted in substantial economic harm to investors selling Twitter common stock.” For the lead plaintiffs in the investors’ suit, the Oklahoma Firefighters Pension and Retirement System, the scheme allegedly robbed retirees of gains used to sustain their quality of life at a particularly vulnerable time.

Musk has continued to argue that his alleged $200 million in savings from the scheme was minimal compared to his $44 billion purchase price. But the alleged gains represent about two-thirds of the $290 million price the billionaire paid to support Trump’s election, which won Musk a senior advisor position in the Trump administration, CNBC reported. So it’s seemingly not an insignificant amount of money in the grand scheme.

Likely bending to Musk’s influence, one of Trump’s earliest moves after taking office, CNBC reported, was reversing a 15-year-old policy allowing the SEC director of enforcement to launch probes like the one Musk is currently battling. It allowed the Tesla probe, for example, to be launched just seven days after Musk’s allegedly problematic tweets, the SEC boasted in a 2020 press release.

Now, after Trump’s rule change, investigations must be approved by a vote of SEC commissioners. That will likely slow down probes that the SEC had previously promised years ago would only speed up over time in order to more swiftly protect investors.

SEC expected to reduce corporate fines

For Musk, the SEC has long been a thorn in his side. At least two top officials (1, 2) cited the Tesla settlement as a career highlight, with the agency seeming especially proud of thinking “creatively about appropriate remedies,” the 2020 press release said. Monitoring Musk’s tweets, the SEC said, blocked “potential harm to investors” and put control over Musk’s tweets into the SEC’s hands.

Even Trump may not be able to save Elon Musk from his old tweets Read More »

uk-online-safety-law-musk-hates-kicks-in-today,-and-so-far,-trump-can’t-stop-it

UK online safety law Musk hates kicks in today, and so far, Trump can’t stop it

Enforcement of a first-of-its-kind United Kingdom law that Elon Musk wants Donald Trump to gut kicked in today, with potentially huge penalties possibly imminent for any Big Tech companies deemed non-compliant.

UK’s Online Safety Act (OSA) forces tech companies to detect and remove dangerous online content, threatening fines of up to 10 percent of global turnover. In extreme cases, widely used platforms like Musk’s X could be shut down or executives even jailed if UK online safety regulator Ofcom determines there has been a particularly egregious violation.

Critics call it a censorship bill, listing over 130 “priority” offenses across 17 categories detailing what content platforms must remove. The list includes illegal content connected to terrorism, child sexual exploitation, human trafficking, illegal drugs, animal welfare, and other crimes. But it also broadly restricts content in legally gray areas, like posts considered “extreme pornography,” harassment, or controlling behavior.

Matthew Lesh, a public policy fellow at the Institute of Economic Affairs, told The Telegraph that “the idea that Elon Musk, or any social media executive, could be jailed for failing to remove enough content should send chills down the spine of anyone who cares about free speech.”

Musk has publicly signaled that he expects Trump to intervene, saying, “Thank goodness Donald Trump will be president just in time,” regarding the OSA’s enforcement starting in March, The Telegraph reported last month. The X owner has been battling UK regulators since last summer after resisting requests from the UK government to remove misinformation during riots considered the “worst unrest in England for more than a decade,” The Financial Times reported.

According to Musk, X was refusing to censor UK users. Attacking the OSA, Musk falsely claimed Prime Minister Keir Starmer’s government was “releasing convicted pedophiles in order to imprison people for social media posts,” FT reported. Such a post, if seen as spreading misinformation potentially inciting violence, could be banned under the OSA, the FT suggested.

Trump’s UK deal may disappoint Musk

Musk hopes that Trump will strike a deal with the UK government to potentially water down the OSA.

UK online safety law Musk hates kicks in today, and so far, Trump can’t stop it Read More »

the-same-day-trump-bought-a-tesla,-automaker-moved-to-disrupt-trade-war

The same day Trump bought a Tesla, automaker moved to disrupt trade war


Tesla hopes to slow down Trump’s tit-for-tat tariffs amid financial woes.

Donald Trump and White House Senior Advisor, Tesla and SpaceX CEO Elon Musk deliver remarks next to a Tesla Model S on the South Lawn of the White House on March 11, 2025 in Washington, DC. Credit: Andrew Harnik / Staff | Getty Images News

Elon Musk’s Tesla is waving a red flag, warning that Donald Trump’s trade war risks dooming US electric vehicle makers, triggering job losses, and hurting the economy.

In an unsigned letter to the US Trade Representative (USTR), Tesla cautioned that Trump’s tariffs could increase costs of manufacturing EVs in the US and forecast that any retaliatory tariffs from other nations could spike costs of exports.

“Tesla supports a robust and thorough process” to “address unfair trade practices,” but only those “which, in the process, do not inadvertently harm US companies,” the letter said.

The carmaker recommended that the USTR—in its ongoing review of unfair trade practices and investigation into harms of non-reciprocal trade agreements—”consider the downstream impacts of certain proposed actions taken to address unfair trade practices.”

According to Tesla, the current process to address unfair trade threatens to harm its more than 70,000 employees, and more broadly could trigger job losses and revenue dips in the US auto industry. It could also disrupt supply chains, as Tesla claims that even its best efforts prove it would be “impossible” to source all parts from the US currently.

“Even with aggressive localization of the supply chain, certain parts and components are difficult or impossible to source within the United States,” the letter said, asking the USTR to “evaluate domestic supply chain limitations.”

If left unchanged, the process could make the US less competitive in global auto markets, Tesla warned, recommending that the “USTR should investigate ways to avoid these pitfalls in future actions.”

Moving forward, Tesla recommends that the USTR “take into account” how the trade war could hurt US exporters, as “US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions.”

In the letter, Tesla appears to suggest that Trump’s tariffs were rushed, suggesting that “US companies will benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken.”

Tesla was not alone in submitting comments to the USTR. So far, hundreds of companies have chimed in, many hoping to push back on Trump’s aggressive tariffs regime.

Among them was a trade group representing major foreign automakers like BMW, Honda, and Toyota—Autos Drive America—which agreed with Tesla that the USTR should slow Trump down and require considerations about long-term impacts of sudden actions to address unfair trade. They similarly warned that imposing “broad-based tariffs will disrupt production at US assembly plants,” Reuters reported.

“Automakers cannot shift their supply chains overnight, and cost increases will inevitably lead to some combination of higher consumer prices, fewer models offered to consumers and shut-down US production lines, leading to potential job losses across the supply chain,” the group said.

Disrupting Trump trade war may be tough

Last week, Trump’s 25 percent tariffs on Canada and Mexico took effect, likely frustrating Tesla, which relies on a small parts manufacturer in Canada, Laval Tool, to source parts for the already costly molds for its Cybertrucks. Those tariffs threatened to spike costs beyond the current rate of nearly $500,000 per mold at a time when the Cybertruck hasn’t been selling well, InsideEVs reported. And for Tesla, Trump’s China tariffs may hit even harder, as China is Tesla’s second biggest market.

On the day that those tariffs kicked in, the head of the Alliance for Automotive Innovation—which represents all the major US automakers, except Tesla—John Bozzella warned that “all automakers will be impacted by these tariffs on Canada and Mexico,” Reuters reported. He joined others predicting price hikes on cars coming soon, perhaps as high as 25 percent.

Tesla’s letter to the USTR is notably unsigned, despite CEO Musk’s close allyship with Trump as a senior advisor in his administration—suggesting Musk may be hesitant to directly criticize Trump’s trade war or his opposition to EVs.

Many have questioned how long Musk’s friendship with Trump can possibly last, given their strong personalities and seeming unwillingness to bend to critics. At the beginning of this administration, Musk seemed unafraid to question Trump despite teaming up with him. Perhaps most notably, Trump’s team was supposedly “furious” after Musk trashed Trump’s $500 billion “Stargate” project with OpenAI, Politico reported, which Trump had hyped as “tremendous” and “monumental.”

“It’s clear he has abused the proximity to the president,” a Trump ally granted anonymity told Politico. “The problem is the president doesn’t have any leverage over him and Elon gives zero fucks.”

Officially, Trump downplayed Musk’s public criticism of his major announcement, seeming to understand that Musk views OpenAI CEO Sam Altman—whom Musk is suing for making a “fool” out of him—as an enemy.

“He hates one of the people in the deal,” Trump told a reporter who asked if Musk’s comments had bothered him, confirming, “it doesn’t.”

Despite a long history of harsh comments about EVs, Trump has recently hyped Tesla cars, which Tesla noted in its letter to the USTR, further its mission “to accelerate the world’s transition to sustainable energy.” The BBC noted Tesla’s letter was sent the same day that Trump hosted a White House event where the president vowed to purchase a Tesla in defiance of Tesla boycotts and protests that some believe are driving a steep Tesla stock fall and even degrading the price of used Teslas. In a Truth Social post, Trump claimed that he was buying a Tesla to support “one of the World’s great automakers” and “Elon’s ‘baby,'” alleging that protests and boycotts were somehow illegal.

The Hill suggested that their friendship isn’t likely to end soon, even though Trump has supposedly complained in private about taunts suggesting that Musk is really the president or somehow pulling the strings, The Independent reported.

Musk may be settling into a good dynamic with Trump after spending ample time at the president’s side, reportedly even joining meetings and sensitive calls. Or perhaps Musk is giving Trump space to call the shots, after Musk’s Department of Government Efficiency’s aggressive cuts at federal agencies sparked backlash that finally pushed Trump to rein in Musk’s power a little.

Musk’s proximity to Trump was predicted to be a boon to his businesses, but Tesla has been stuck in a slump that seemingly some Trump allies think Trump might fear makes him look weak, The New Republic reported. But Trump has made tariffs the core of his trade policy, hoping aggressive taxes will force more industry into the US, and it’s hard to see how Musk could easily influence him to shift gears.

In Tesla’s letter, the automaker told the USTR that it was “essential to support US manufacturing jobs” by ensuring that cost-prohibitive tariffs or other import restrictions don’t disrupt critical auto industry supply chains. For Tesla, the stakes couldn’t be higher, as the company reminded the USTR that “Tesla was ranked as the world leader in the transition to vehicle electrification,” manufacturing “the best-selling car in the world (EV or otherwise).”

“Tesla’s US facilities support over 70,000 employees and are responsible for billions of dollars of US investment and economic activity each year,” Tesla’s letter said.

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

The same day Trump bought a Tesla, automaker moved to disrupt trade war Read More »

openai-declares-ai-race-“over”-if-training-on-copyrighted-works-isn’t-fair-use

OpenAI declares AI race “over” if training on copyrighted works isn’t fair use

OpenAI is hoping that Donald Trump’s AI Action Plan, due out this July, will settle copyright debates by declaring AI training fair use—paving the way for AI companies’ unfettered access to training data that OpenAI claims is critical to defeat China in the AI race.

Currently, courts are mulling whether AI training is fair use, as rights holders say that AI models trained on creative works threaten to replace them in markets and water down humanity’s creative output overall.

OpenAI is just one AI company fighting with rights holders in several dozen lawsuits, arguing that AI transforms copyrighted works it trains on and alleging that AI outputs aren’t substitutes for original works.

So far, one landmark ruling favored rights holders, with a judge declaring AI training is not fair use, as AI outputs clearly threatened to replace Thomson-Reuters’ legal research firm Westlaw in the market, Wired reported. But OpenAI now appears to be looking to Trump to avoid a similar outcome in its lawsuits, including a major suit brought by The New York Times.

“OpenAI’s models are trained to not replicate works for consumption by the public. Instead, they learn from the works and extract patterns, linguistic structures, and contextual insights,” OpenAI claimed. “This means our AI model training aligns with the core objectives of copyright and the fair use doctrine, using existing works to create something wholly new and different without eroding the commercial value of those existing works.”

Providing “freedom-focused” recommendations on Trump’s plan during a public comment period ending Saturday, OpenAI suggested Thursday that the US should end these court fights by shifting its copyright strategy to promote the AI industry’s “freedom to learn.” Otherwise, the People’s Republic of China (PRC) will likely continue accessing copyrighted data that US companies cannot access, supposedly giving China a leg up “while gaining little in the way of protections for the original IP creators,” OpenAI argued.

OpenAI declares AI race “over” if training on copyrighted works isn’t fair use Read More »

ftc-can’t-afford-to-fight-amazon’s-allegedly-deceptive-sign-ups-after-doge-cuts

FTC can’t afford to fight Amazon’s allegedly deceptive sign-ups after DOGE cuts

The Federal Trade Commission is moving to push back a trial set to determine if Amazon tricked customers into signing up for Prime subscriptions.

At a Zoom status hearing on Wednesday, the FTC officially asked US District Judge John Chun to delay the trial. According to the FTC’s attorney, Jonathan Cohen, the agency needs two months to prepare beyond the September 22 start date, blaming recent “staffing and budgetary shortfalls” stemming from the Trump administration’s Department of Government Efficiency (DOGE), CNBC reported.

“We have lost employees in the agency, in our division, and on our case team,” Cohen said, explaining that “there is an extremely severe resource shortfall in terms of money and personnel,” Bloomberg reported. Cuts are apparently so bad, Cohen told Chun that the FTC is stuck with a $1 cap on any government credit card charges and “may not be able to purchase the transcript from Wednesday’s hearing,” Bloomberg reported.

Further threatening to scramble the agency’s trial preparation, the FTC anticipates that downsizing may require a move to another office “unexpectedly,” Cohen told Chun.

Amazon does not agree that a delay is necessary. The e-commerce giant’s attorney, John Hueston, told Chun that “there has been no showing on this call that the government does not have the resources to proceed to trial with the trial date as presently set.”

FTC can’t afford to fight Amazon’s allegedly deceptive sign-ups after DOGE cuts Read More »

trump-says-bitcoin-reserve-will-change-everything-crypto-fans-aren’t-so-sure.

Trump says bitcoin reserve will change everything. Crypto fans aren’t so sure.

Ahead of the first-ever White House Crypto Summit Friday, President Donald Trump signed an executive order establishing a strategic bitcoin reserve that a factsheet claimed delivers on his promise to make America the “crypto capital of the world.”

Trump’s order requires all federal agencies currently holding bitcoins seized as part of a criminal or civil asset forfeiture proceeding to transfer those bitcoins to the Treasury Department, which itself already has a store of bitcoins. Additionally, any other digital assets forfeited will be collected in a separate Digital Assets Stockpile.

But while Trump likely anticipates that bitcoin fans will be over the moon about this news—his announcement of the reserve and looser crypto regulations helped send bitcoin’s price to its all-time high of $109,000 in January, Reuters noted—some cryptocurrency enthusiasts were clearly disappointed that Trump’s order confirmed that the US currently has no plans to buy any more bitcoins at this time.

Bitcoin’s price briefly dropped by about 5 percent to $85,000 on the news, Reuters reported. Charles Edwards, the founder of a bitcoin-focused hedge fund called Capriole Investments, took to X (formerly Twitter) to declare that Trump’s order is “a pig in lipstick.” Currently, bitcoin’s price is around $90,500.

“This is the most underwhelming and disappointing outcome we could have expected for this week,” Edwards wrote. “No active buying means this is just a fancy title for Bitcoin holdings that already existed” with the government.

A digital assets managing director at S&P Global Ratings, Andrew O’Neill, agreed, telling Reuters that the “significance” of Trump’s order was “mainly symbolic” and provides no timeline for when more bitcoin might be acquired by the US.

In the factsheet, the White House insisted that the strategic reserve and digital assets stockpile would harness “the power of digital assets for national prosperity rather than letting them languish in limbo.”

Trump says bitcoin reserve will change everything. Crypto fans aren’t so sure. Read More »

china-aims-to-recruit-top-us-scientists-as-trump-tries-to-kill-the-chips-act

China aims to recruit top US scientists as Trump tries to kill the CHIPS Act


Tech innovation in US likely to stall if Trump ends the CHIPS Act.

On Tuesday, Donald Trump finally made it clear to Congress that he wants to kill the CHIPS and Science Act—a $280 billion bipartisan law Joe Biden signed in 2022 to bring more semiconductor manufacturing into the US and put the country at the forefront of research and innovation.

Trump has long expressed frustration with the high cost of the CHIPS Act, telling Congress on Tuesday that it’s a “horrible, horrible thing” to “give hundreds of billions of dollars” in subsidies to companies that he claimed “take our money” and “don’t spend it,” Reuters reported.

“You should get rid of the CHIPS Act, and whatever is left over, Mr. Speaker, you should use it to reduce debt,” Trump said.

Instead, Trump potentially plans to shift the US from incentivizing chips manufacturing to punishing firms dependent on imports, threatening a 25 percent tariff on all semiconductor imports that could kick in as soon as April 2, CNBC reported.

The CHIPS Act was supposed to be Biden’s legacy, and because he made it a priority, much of the $52.7 billion in subsidies that Trump is criticizing has already been finalized. In 2022, Biden approved $39 billion in subsidies for semiconductor firms, and in his last weeks in office, he finalized more than $33 billion in awards, Reuters noted.

Among the awardees are leading semiconductor firms, including the Taiwan Semiconductor Manufacturing Co. (TSMC), Micron, Intel, Nvidia, and Samsung Electronics. Although Trump claims the CHIPS Act is one-sided and only serves to benefit firms, according to the Semiconductor Industry Association, the law sparked $450 billion in private investments increasing semiconductor production across 28 states by mid-2024.

With the CHIPS Act officially in Trump’s crosshairs, innovation appears likely to stall the longer that lawmakers remain unsettled on whether the law stays or goes. Some officials worried that Trump might interfere with Biden’s binding agreements with leading firms already holding up their end of the bargain, Reuters reported. For example, Micron plans to invest $100 billion in New York, and TSMC just committed to spending the same over the next four years to expand construction of US chips fabs, which is already well underway.

So far, Commerce Secretary Howard Lutnick has only indicated that he will review the finalized awards, noting that the US wouldn’t be giving TSMC any new awards, Reuters reported.

But the CHIPS Act does much more than provide subsidies to lure leading semiconductor companies into the US. For the first time in decades, the law created a new arm of the National Science Foundation (NSF)—the Directorate of Technology, Innovation, and Partnerships (TIP)—which functions unlike any other part of NSF and now appears existentially threatened.

Designed to take the country’s boldest ideas from basic research to real-world applications as fast as possible to make the US as competitive as possible, TIP helps advance all NSF research and was supposed to ensure US leadership in breakthrough technologies, including AI, 6G communications, biotech, quantum computing, and advanced manufacturing.

Biden allocated $20 billion to launch TIP through the CHIPS Act to accelerate technology development not just at top firms but also in small research settings across the US. But as soon as the Department of Government Efficiency (DOGE) started making cuts at NSF this year, TIP got hit the hardest. Seemingly TIP was targeted not because DOGE deemed it the least consequential but simply because it was the youngest directorate at NSF with the most workers in transition when Trump took office and DOGE abruptly announced it was terminating all “probationary” federal workers.

It took years to get TIP ready to flip the switch to accelerate tech innovation in the US. Without it, Trump risks setting the US back at a time when competitors like China are racing ahead and wooing US scientists who suddenly may not know if or when their funding is coming, NSF workers and industry groups told Ars.

Without TIP, NSF slows down

Last month, DOGE absolutely scrambled the NSF by forcing arbitrary cuts of so-called probationary employees—mostly young scientists, some of whom were in transition due to promotions. All those cuts were deemed illegal and finally reversed Monday by court order after weeks of internal chaos reportedly stalling or threatening to delay some of the highest-priority research in the US.

“The Office of Personnel Management does not have any authority whatsoever under any statute in the history of the universe to hire and fire employees at another agency,” US District Judge William Alsup said, calling probationary employees the “life blood” of government agencies.

Ars granted NSF workers anonymity to discuss how cuts were impacting research. At TIP, a federal worker told Ars that one of the probationary cuts in particular threatened to do the most damage.

Because TIP is so new, only one worker was trained to code automated tracking forms that helped decision-makers balance budgets and approve funding for projects across NSF in real time. Ars’ source likened it to holding the only key to the vault of NSF funding. And because TIP is so different from other NSF branches—hiring experts never pulled into NSF before and requiring customized resources to coordinate projects across all NSF fields of research—the insider suggested another government worker couldn’t easily be substituted. It could take possibly two years to hire and train a replacement on TIP’s unique tracking system, the source said, while TIP’s (and possibly all of NSF’s) efficiency is likely strained.

TIP has never been fully functional, the TIP insider confirmed, and could be choked off right as it starts helping to move the needle on US innovation. “Imagine where we are in two years and where China is in two years in quantum computing, semiconductors, or AI,” the TIP insider warned, pointing to China’s surprisingly advanced AI model, DeepSeek, as an indicator of how quickly tech leadership in global markets can change.

On Monday, NSF emailed all workers to confirm that all probationary workers would be reinstated “right away.” But the damage may already be done as it’s unclear how many workers plan to return. When TIP lost the coder—who was seemingly fired for a technicality while transitioning to a different payscale—NSF workers rushed to recommend the coder on LinkedIn, hoping to help the coder quickly secure another opportunity in industry or academia.

Ars could not reach the coder to confirm whether a return to TIP is in the cards. But Ars’ source at TIP and another NSF worker granted anonymity said that probationary workers may be hesitant to return because they are likely to be hit in any official reductions in force (RIFs) in the future.

“RIFs done the legal way are likely coming down the pipe, so these staff are not coming back to a place of security,” the NSF worker said. “The trust is broken. Even for those that choose to return, they’d be wise to be seeking other opportunities.”

And even losing the TIP coder for a couple of weeks likely slows NSF down at a time when the US seemingly can’t afford to lose a single day.

“We’re going to get murdered” if China sets the standard on 6G or AI, the TIP worker fears.

Rivals and allies wooing top US scientists

On Monday, six research and scientific associations, which described themselves as “leading organizations representing more than 305,000 people in computing, information technology, and technical innovation across US industry, academia, and government,” wrote to Congress demanding protections for the US research enterprise.

The groups warned that funding freezes and worker cuts at NSF—and other agencies, including the Department of Energy, the National Institute of Standards & Technology, the National Aeronautics and Space Administration, the National Institutes of Health—”have caused disruption and uncertainty” and threaten “long-lasting negative consequences for our competitiveness, national security, and economic prosperity.”

Deeming America’s technology leadership at risk, the groups pointed out that “in computing alone, a federal investment in research of just over $10 billion annually across 24 agencies and offices underpins a technology sector that contributes more than $2 trillion to the US GDP each year.” Cutting US investment “would be a costly mistake, far outweighing any short-term savings,” the groups warned.

In a separate statement, the Computing Research Association (CRA) called NSF cuts, in particular, a “deeply troubling, self-inflicted setback to US leadership in computing research” that appeared “penny-wise and pound-foolish.”

“NSF is one of the most efficient federal agencies, operating with less than 9 percent overhead costs,” CRA said. “These arbitrary terminations are not justified by performance metrics or efficiency concerns; rather, they represent a drastic and unnecessary weakening of the US research enterprise.”

Many NSF workers are afraid to speak up, the TIP worker told Ars, and industry seems similarly tight-lipped as confusion remains. Only one of the organizations urging Congress to intervene agreed to talk to Ars about the NSF cuts and the significance of TIP. Kathryn Kelley, the executive director of the Coalition for Academic Scientific Computation, confirmed that while members are more aligned with NSF’s Directorate for Computer and Information Science and Engineering and the Office of Advanced Cyberinfrastructure, her group agrees that all NSF cuts are “deeply” concerning.

“We agree that the uncertainty and erosion of trust within the NSF workforce could have long-lasting effects on the agency’s ability to attract and retain top talent, particularly in such specialized areas,” Kelley told Ars. “This situation underscores the need for continued investment in a stable, well-supported workforce to maintain the US’s leadership in science and innovation.”

Other industry sources unwilling to go on the record told Ars that arbitrary cuts largely affecting the youngest scientists at NSF threatened to disrupt a generation of researchers who envisioned long careers advancing US tech. There’s now a danger that those researchers may be lured to other countries heavily investing in science and currently advertising to attract displaced US researchers, including not just rivals like China but also allies like Denmark.

Those sources questioned the wisdom of using the Elon Musk-like approach of breaking the NSF to rebuild it when it’s already one of the leanest organizations in government.

Ars confirmed that some PhD programs have been cancelled, as many academic researchers are already widely concerned about delayed or cancelled grants and generally freaked out about where to get dependable funding outside the NSF. And in industry, some CHIPS Act projects have already been delayed, as companies like Intel try to manage timelines without knowing what’s happening with CHIPS funding, AP News reported.

“Obviously chip manufacturing companies will slow spending on programs they previously thought they were getting CHIPS Act funding for if not cancel those projects outright,” the Semiconductor Advisors, an industry group, forecasted in a statement last month.

The TIP insider told Ars that the CHIPS Act subsidies for large companies that Trump despises mostly fuel manufacturing in the US, while funding for smaller research facilities is what actually advances technology. Reducing efficiency at TIP would likely disrupt those researchers the most, the TIP worker suggested, proclaiming that’s why TIP must be saved at all costs.

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

China aims to recruit top US scientists as Trump tries to kill the CHIPS Act Read More »

tsmc-to-invest-$100b-as-trump-demands-more-us-made-chips,-report-says

TSMC to invest $100B as Trump demands more US-made chips, report says

Currently, TSMC only builds its most advanced chips in Taiwan. But when the most advanced US fabs are operational, they’ll be prepared to manufacture “tens of millions of leading-edge chips” to “power products like 5G/6G smartphones, autonomous vehicles, and AI datacenter servers,” the Commerce Department said in 2024.

TSMC has not confirmed the WSJ’s report but provided a statement: “We’re pleased to have an opportunity to meet with the President and look forward to discussing our shared vision for innovation and growth in the semiconductor industry, as well as exploring ways to bolster the technology sector along with our customers.”

Trump threat of semiconductor tariffs still looms

Advanced chips are regarded as critical for AI innovation, which Trump has prioritized, as well as for national security.

Without a steady supply, the US risks substantial technological and economic losses as well as potential weakening of its military.

To avert that, Trump campaigned on imposing tariffs that he claimed would drive more semiconductor manufacturing into the US, while criticizing the CHIPS Act for costing the US billions. Following through on that promise, in February, he threatened a “25 percent or more tariff” on all semiconductor imports, the WSJ reported. According to CNBC, Trump suggested those tariffs could be in effect by April 2.

“We have to have chips made in this country,” Trump said last month. “Right now, everything is made in Taiwan, practically, almost all of it, a little bit in South Korea, but everything—almost all of it is made in Taiwan. And we want it to be made—we want those companies to come to our country, in all due respect.”

While it’s unclear if Trump plans to overtly kill the CHIPS Act, his government funding cuts could trigger a future where the CHIPS Act dies with no workers left to certify that companies meet requirements for ongoing award disbursements, a semiconductor industry consultant group, Semiconductor Advisors, warned in a statement last month.

“If I were running a chip company, I would not count on CHIPS Act funding, even if I had a signed contract,” SA’s statement said.

TSMC to invest $100B as Trump demands more US-made chips, report says Read More »

trump-should-block-biden’s-ai-“gift”-to-china,-microsoft-argues

Trump should block Biden’s AI “gift” to China, Microsoft argues

“Countries including Brazil, India, Israel, and the UAE are eminently capable of ramping up investments aimed at securing new ways to access increased computing capacity,” the Brookings Institute said. “Preventing companies in middle-tier countries from relying on the US to supply computing chips is a surefire way to push them into building non-US alliances that include stronger technology ties with China.”

The rule could also complicate the global AI landscape in ways the US may not anticipate, the Center for Strategic and International Studies (CSIS), a bipartisan, nonprofit policy research organization, forecast last week. It could “breed resentment, not cooperation” in tier-two countries that will likely “bristle at the fact that their AI ambitions depend on Washington’s goodwill and that they are being deliberately kept a generation behind the frontier,” CSIS wrote. And it could drive more open source AI like DeepSeek to be key to development in tier-two nations, perhaps further endangering US global leadership in AI, CSIS suggested.

“Ironically, the AI Diffusion Framework, meant to lock in American advantage, may instead midwife the very outcome it sought to prevent—an alternate AI stack and increased open-source development where China, as its most prolific contributor, emerges as the de facto leader,” CSIS reported.

China wooing countries targeted by rule, Microsoft says

But according to Smith, some parts of the rule should be preserved, like datacenter restrictions, including “qualitative provisions” that “ensure that AI technology components are deployed in certified, secure, and trusted datacenters.” That part of the rule, Smith suggested, “helps reduce the risk of chip diversion to China.”

And other parts of the rule can be strengthened, Smith wrote, such as ensuring the Commerce Department has resources to enforce it and “expedite approvals” for any countries in the middle tier who may appeal to either move into the top tier or limit tier-two restrictions.

Trump should block Biden’s AI “gift” to China, Microsoft argues Read More »

sec’s-“scorched-earth”-lawsuit-against-coinbase-to-be-dropped,-company-says

SEC’s “scorched-earth” lawsuit against Coinbase to be dropped, company says

On Friday, a Coinbase executive declared the “war against crypto” over—”at least as it applies to Coinbase.”

According to Coinbase Chief Legal Officer Paul Grewal, the US Securities and Exchange Commission (SEC) plans to drop its lawsuit against the largest US cryptocurrency exchange as the agency shifts to embrace Donald Trump’s new approach to regulating cryptocurrency in the US.

The SEC sued Coinbase in 2023, accusing Coinbase of “operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency” and “failing to register the offer and sale of its crypto asset staking-as-a-service program.”

“Since at least 2019, Coinbase has made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities,” the SEC alleged.

At that time, the SEC claimed that Coinbase’s supposedly dodgy operations were depriving investors of “significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others.” The litigation was intended to protect Coinbase customers, the SEC said, by holding Coinbase to the same standards as any service acting as an exchange, broker, or clearing agency.

Former SEC Chair Gary Gensler, long considered an adversary in the crypto industry, had warned that Coinbase “deliberately” flouted rules to cheat investors out of protections for financial gain. That left customers exposed to risks, Gensler claimed, and allowed for insider trading that resulted in a settlement.

“You simply can’t ignore the rules because you don’t like them or because you’d prefer different ones: the consequences for the investing public are far too great,” Gensler said.

SEC’s “scorched-earth” lawsuit against Coinbase to be dropped, company says Read More »

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Elon Musk to “fix” Community Notes after they contradict Trump

Elon Musk apparently no longer believes that crowdsourcing fact-checking through Community Notes can never be manipulated and is, thus, the best way to correct bad posts on his social media platform X.

Community Notes are supposed to be added to posts to limit misinformation spread after a broad consensus is reached among X users with diverse viewpoints on what corrections are needed. But Musk now claims a “fix” is needed to prevent supposedly outside influencers from allegedly gaming the system.

“Unfortunately, @CommunityNotes is increasingly being gamed by governments & legacy media,” Musk wrote on X. “Working to fix this.”

Musk’s announcement came after Community Notes were added to X posts discussing a poll generating favorable ratings for Ukraine President Volodymyr Zelenskyy. That poll was conducted by a private Ukrainian company in partnership with a state university whose supervisory board was appointed by the Ukrainian government, creating what Musk seems to view as a conflict of interest.

Although other independent polling recently documented a similar increase in Zelenskyy’s approval rating, NBC News reported, the specific poll cited in X notes contradicted Donald Trump’s claim that Zelenskyy is unpopular, and Musk seemed to expect X notes should instead be providing context to defend Trump’s viewpoint. Musk even suggested that by pointing to the supposedly government-linked poll in Community Notes, X users were spreading misinformation.

“It should be utterly obvious that a Zelensky[y]-controlled poll about his OWN approval is not credible!!” Musk wrote on X.

Musk’s attack on Community Notes is somewhat surprising. Although he has always maintained that Community Notes aren’t “perfect,” he has defended Community Notes through multiple European Union probes challenging their effectiveness and declared that the goal of the crowdsourcing effort was to make X “by far the best source of truth on Earth.” At CES 2025, X CEO Linda Yaccarino bragged that Community Notes are “good for the world.”

Yaccarino invited audience members to “think about it as this global collective consciousness keeping each other accountable at global scale in real time,” but just one month later, Musk is suddenly casting doubts on that characterization while the European Union continues to probe X.

Perhaps most significantly, Musk previously insisted as recently as last year that Community Notes could not be manipulated, even by Musk. He strongly disputed a 2024 report from the Center for Countering Digital Hate that claimed that toxic X users were downranking accurate notes that they personally disagreed with, claiming any attempt at gaming Community Notes would stick out like a “neon sore thumb.”

Elon Musk to “fix” Community Notes after they contradict Trump Read More »

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Acer CEO says its PC prices to increase by 10 percent in response to Trump tariffs

PC-manufacturer Acer has said that it plans to raise the prices of its PCs in the US by 10 percent, a direct response to the new 10 percent import tariff on Chinese goods that the Trump administration announced earlier this month.

“We will have to adjust the end user price to reflect the tariff,” said Acer CEO Jason Chen in an interview with The Telegraph. “We think 10 percent probably will be the default price increase because of the import tax. It’s very straightforward.”

These price increases won’t roll out right away, according to Chen—products shipped from China before the tariffs went into effect earlier this month won’t be subject to the increased import taxes—but we can expect them to show up in PC price tags over the next few weeks.

Chen also said that Acer was considering moving more of its manufacturing outside of China as a result of the tariffs, something that Acer had done for some of its desktop PCs after Trump imposed similar tariffs on Chinese imports during his first term. Manufacturing systems in the US is also “one of the options,” according to Chen.

Acer CEO says its PC prices to increase by 10 percent in response to Trump tariffs Read More »