Category: Technology News

NEW YORK (AP) — Nvidia and AMD have agreed to share 15% of their revenues from chip sales to China with the U.S. government, as part of a deal to secure export licenses for the semiconductors.

The Trump administration halted the sale of advanced computer chips to China in April over national security concerns, but Nvidia and AMD revealed in July that Washington would allow them to resume sales of the H20 and MI308 chips, which are used in artificial intelligence development.

President Trump confirmed the terms of the unusual arrangement in a Monday press conference while noting that he originally wanted 20% of the sales revenue when Nvidia asked to sell the “obsolete” H20 chip to China. The president credited Nvidia CEO Jensen Huang for negotiating him down to 15%.

“So we negotiated a little deal. So he’s selling a essentially old chip,” Trump said.

Nvidia did not comment about the specific details of the agreement or its quid pro quo nature, but said they would adhere to the export rules laid out by the administration.

“We follow rules the U.S. government sets for our participation in worldwide markets. While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,” Nvidia wrote in a statement to the AP. “America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.”

AMD did not immediately reply to a request for comment.

Rep. John Moolenaar, the Republican chair of the House Select Committee on China, expressed concern over the deal.

“There are questions about the legal basis for doing so,” he said. “Export controls are a frontline defense in protecting our national security, and we should not set a precedent that incentivizes the government to grant licenses to sell China technology that will enhance its AI capabilities.”

The top Democrat on the panel also raised concerns over the reported agreement, calling it “a dangerous misuse of export controls that undermines our national security.”

Rep. Raja Krishnamoorthi, the ranking member of the House Select Committee on China, said he would seek answers about the legal basis for this arrangement and demand full transparency from the administration.

“Our export control regime must be based on genuine security considerations, not creative taxation schemes disguised as national security policy,” he said. “Chip export controls aren’t bargaining chips, and they’re not casino chips either. We shouldn’t be gambling with our national security to raise revenue.”

Derek Scissors, senior fellow and China expert at the conservative American Enterprise Institute, reiterated Moolenaar’s point about the constitutionality of the deal.

“There’s no precedent for this, probably because export taxes are unconstitutional, ” said Derek Scissors, senior fellow and China expert at the conservative American Enterprise Institute. “They call it a fee, but 15% of sales revenue is about a standard a tax as it comes. For this reason, I don’t think the ‘arrangement’ is at all durable. ‘’

“If it were to last, it has two possible implications. First, there’s a possible export tax that high-profile companies and goods must consider. Or the tax only applies in exceptional situations, such as changing export controls. Then we’d risk national security for the sake of tax revenue, which is effectively the same as cutting the defense budget,” Scissors said.

Back in July, Nvidia argued that tight export controls around their chip sales would cost the company an extra $5.5 billion. They’ve argued that such limits hinder U.S. competition in a sector in one of the world’s largest markets for technology, and have also warned that U.S. export controls could end up pushing other countries toward China’s AI technology.

Commerce Secretary Howard Lutnick told CNBC in July that the renewed sale of Nvidia’s chips in China was linked to a trade agreement made between the two countries on rare earth magnets.

Restrictions on sales of advanced chips to China have been central to the AI race between the world’s two largest economic powers, but such controls are also controversial. Proponents argue that these restrictions are necessary to slow China down enough to allow U.S. companies to keep their lead. Meanwhile, opponents say the export controls have loopholes — and could still spur innovation. The emergence of China’s DeepSeek AI chatbot in January particularly renewed concerns over how China might use advanced chips to help develop its own AI capabilities.

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Associated Press writers Josh Boak, Shawn Chen, Didi Tang and Paul Wiseman contributed to the reporting.

Vanessa Kirby starring in a gritty film about the aspirations of home ownership, “Night Always Comes,” and Maroon 5 releasing their eighth studio album with songs featuring Lil Wayne and Blackpink’s LISA are some of the new television, films, music and games headed to a device near you.

Also among the streaming offerings worth your time, as selected by The Associated Press’ entertainment journalists: Alicia Silverstone leading a new TV crime drama called “Irish Blood.,” the multigenerational, wholesome drama “The Chicken Sisters” rolls out its second season on Hallmark and EA Sports jumps aboard the artificial intelligence bandwagon with Madden NFL 26.

New movies to stream from Aug. 11-17

— Isaiah Saxon’s “The Legend of Ochi” (streaming Friday on HBO Max) is a handcrafted fantasy throwback seeking to conjure the kind of magic once found in movies like “The Never Ending Story.” The A24 film stars Helena Zengel as Yuri, a girl who runs away from the forest home she shared with her father (Willem Dafoe) and brother (Finn Wolfhard). She leaves with a baby Ochi, a creature hunted by her father. In her review, AP Film Writer Lindsey Bahr wrote that “The Legend of Ochi” “has the feeling of a film you might have stumbled on and loved as a kid.”

— Vanessa Kirby may be one of the standout performers of the summer blockbuster “The Fantastic Four: First Steps,” but she also stars in a gritty new film about the aspirations of home ownership. In “Night Always Comes” (Thursday on Netflix), Kirby plays a woman going to extreme lengths to secure a home for her family. The movie, directed by Benjamin Caron and adapted from Willy Vlautin’s best-selling novel, takes place over a single night.

— AP Film Writer Jake Coyle

New music to stream from Aug. 11-17

— Maroon 5 will release their eighth studio album, “Love is Like,” on Friday via Interscope Records. Expect smooth, funky pop music — like the sultry “All Night.” Singer Adam Levine and Co. continue their trend of unexpected and delightful collaborations as well, with songs featuring Lil Wayne, Sexyy Red and Blackpink’s LISA. You read that correctly.

— Clifford Antone opened Antone’s, one of the most storied music venues in Austin, Texas, with an inaugural performance by the King of Zydeco, Clifton Chenier in 1975. In the decades since, Antone’s has become the stuff of mythology; a performance space that embraces its history and looks towards its future. A new box set out Friday from New West Records seeks to celebrate Antone’s legacy with “Antone’s: 50 Years of the Blues.”

— AP Music Writer Maria Sherman

New series to stream from Aug. 11-17

— The multigenerational, wholesome drama “The Chicken Sisters” rolls out its second season on Hallmark. The series stars Schuyler Fisk, Lea Thompson, Wendie Malick and Genevieve Angelson as family members in a small town divided over their rival fried chicken businesses. It’s based on a novel of the same name. The series streams new episodes beginning Monday on Hallmark+.

— Alicia Silverstone leads the new crime drama called “Irish Blood.” She plays Fiona, a woman who has been led to believe her father abandoned her as a child — and has carried around some heavy emotional baggage ever since. When she learns the truth is more complicated — not to mention dangerous — she heads to Ireland to investigate. The premiere of the six-part show drops Monday on Acorn TV.

— A new one for the kiddos is the Disney Jr. series “Iron Man and his Awesome Friends,” coming to Disney+. The first 10 episodes drop Tuesday. The show follows besties and fellow geniuses, Tony Stark, Riri Williams and Amadeus Cho, who team up to solve problems.

— Chris Hemsworth continues his quest to live a healthier, more present, and longer life in a second season of “Limitless,” now called “Limitless: Live Better Now.” The three-part docuseries sees Hemsworth learn more about brain power (with help from his friend and recording artist Ed Sheeran), risk and pain. The three episodes stream on Hulu and Disney+ beginning Friday.

— Alicia Rancilio

New video games to play from Aug. 11-17

— EA Sports is jumping aboard the artificial intelligence bandwagon with Madden NFL 26, promising “a new AI-powered machine learning system trained by real play calls and game situations over nearly a decade.” The most intriguing additions are QB DNA and Coach DNA — so, for example, if you’re playing the Kansas City Chiefs, you’ll see the kind of moves you’d expect from Patrick Mahomes and Andy Reid. As always, the goal is to get ever closer to real-life football, with more dynamic weather effects, more details from pro stadiums and the return (at last!) of team mascots. The cover model this season is Philadelphia Eagles running back Saquon Barkley, who’ll be ready to start leaping over defenders Thursday on PlayStation 5, Xbox X/S, Switch 2 and PC.

— Lou Kesten

HARRISBURG, Pa. (AP) — Amid rising electric bills, states are under pressure to insulate regular household and business ratepayers from the costs of feeding Big Tech’s energy-hungry data centers.

It’s not clear that any state has a solution and the actual effect of data centers on electricity bills is difficult to pin down. Some critics question whether states have the spine to take a hard line against tech behemoths like Microsoft, Google, Amazon and Meta.

But more than a dozen states have begun taking steps as data centers drive a rapid build-out of power plants and transmission lines.

That has meant pressuring the nation’s biggest power grid operator to clamp down on price increases, studying the effect of data centers on electricity bills or pushing data center owners to pay a larger share of local transmission costs.

Rising power bills are “something legislators have been hearing a lot about. It’s something we’ve been hearing a lot about. More people are speaking out at the public utility commission in the past year than I’ve ever seen before,” said Charlotte Shuff of the Oregon Citizens’ Utility Board, a consumer advocacy group. “There’s a massive outcry.”

Not the typical electric customer

Some data centers could require more electricity than cities the size of Pittsburgh, Cleveland or New Orleans, and make huge factories look tiny by comparison. That’s pushing policymakers to rethink a system that, historically, has spread transmission costs among classes of consumers that are proportional to electricity use.

“A lot of this infrastructure, billions of dollars of it, is being built just for a few customers and a few facilities and these happen to be the wealthiest companies in the world,” said Ari Peskoe, who directs the Electricity Law Initiative at Harvard University. “I think some of the fundamental assumptions behind all this just kind of breaks down.”

A fix, Peskoe said, is a “can of worms” that pits ratepayer classes against one another.

Some officials downplay the role of data centers in pushing up electric bills.

Tricia Pridemore, who sits on Georgia’s Public Service Commission and is president of the National Association of Regulatory Utility Commissioners, pointed to an already tightened electricity supply and increasing costs for power lines, utility poles, transformers and generators as utilities replace aging equipment or harden it against extreme weather.

The data centers needed to accommodate the artificial intelligence boom are still in the regulatory planning stages, Pridemore said, and the Data Center Coalition, which represents Big Tech firms and data center developers, has said its members are committed to paying their fair share.

But growing evidence suggests that the electricity bills of some Americans are rising to subsidize the massive energy needs of Big Tech as the U.S. competes in a race against China for artificial intelligence superiority.

Data and analytics firm Wood Mackenzie published a report in recent weeks that suggested 20 proposed or effective specialized rates for data centers in 16 states it studied aren’t nearly enough to cover the cost of a new natural gas power plant.

In other words, unless utilities negotiate higher specialized rates, other ratepayer classes — residential, commercial and industrial — are likely paying for data center power needs.

Meanwhile, Monitoring Analytics, the independent market watchdog for the mid-Atlantic grid, produced research in June showing that 70% — or $9.3 billion — of last year’s increased electricity cost was the result of data center demand.

States are responding

Last year, five governors led by Pennsylvania’s Josh Shapiro began pushing back against power prices set by the mid-Atlantic grid operator, PJM Interconnection, after that amount spiked nearly sevenfold. They warned of customers “paying billions more than is necessary.”

PJM has yet to propose ways to guarantee that data centers pay their freight, but Monitoring Analytics is floating the idea that data centers should be required to procure their own power.

In a filing last month, it said that would avoid a “massive wealth transfer” from average people to tech companies.

At least a dozen states are eyeing ways to make data centers pay higher local transmission costs.

In Oregon, a data center hot spot, lawmakers passed legislation in June ordering state utility regulators to develop new — presumably higher — power rates for data centers.

The Oregon Citizens’ Utility Board says there is clear evidence that costs to serve data centers are being spread across all customers — at a time when some electric bills there are up 50% over the past four years and utilities are disconnecting more people than ever.

New Jersey’s governor signed legislation last month commissioning state utility regulators to study whether ratepayers are being hit with “unreasonable rate increases” to connect data centers and to develop a specialized rate to charge data centers.

In some other states, like Texas and Utah, governors and lawmakers are trying to avoid a supply-and-demand crisis that leaves ratepayers on the hook — or in the dark.

Doubts about states protecting ratepayers

In Indiana, state utility regulators approved a settlement between Indiana Michigan Power Co., Amazon, Google, Microsoft and consumer advocates that set parameters for data center payments for service.

Kerwin Olsen, of the Citizens Action Council of Indiana, a consumer advocacy group, signed the settlement and called it a “pretty good deal” that contained more consumer protections than what state lawmakers passed.

But, he said, state law doesn’t force large power users like data centers to publicly reveal their electric usage, so pinning down whether they’re paying their fair share of transmission costs “will be a challenge.”

In a March report, the Environmental and Energy Law Program at Harvard University questioned the motivation of utilities and regulators to shield ratepayers from footing the cost of electricity for data centers.

Both utilities and states have incentives to attract big customers like data centers, it said.

To do it, utilities — which must get their rates approved by regulators — can offer “special deals to favored customers” like a data center and effectively shift the costs of those discounts to regular ratepayers, the authors wrote. Many state laws can shield disclosure of those rates, they said.

In Pennsylvania, an emerging data center hot spot, the state utility commission is drafting a model rate structure for utilities to consider adopting. An overarching goal is to get data center developers to put their money where their mouth is.

“We’re talking about real transmission upgrades, potentially hundreds of millions of dollars,” commission chairman Stephen DeFrank said. “And that’s what you don’t want the ratepayer to get stuck paying for.”

___

Follow Marc Levy on X at https://x.com/timelywriter.

Intel CEO Lip-Bu Tan says he’s “always operated within the highest legal and ethical standards” after President Donald Trump said he should resign.

On Thursday Trump said on Truth Social platform that, “The CEO of Intel is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!”

Trump’s post landed after Sen. Tom Cotton sent a letter to Intel Chairman Frank Yeary expressing concern over Tan’s investments and ties to semiconductor firms that are reportedly linked to the Chinese Communist Party and the People’s Liberation Army, and asked the board whether Tan had divested his interests in these companies to eliminate any conflicts of interest.

It was not immediately clear on Thursday if Tan, who took over as Intel’s CEO in March, had divested his interests in the companies.

The economic and political rivalry between the U.S. and China are increasingly focused on computer chips, AI and other digital technologies that are expected to shape future economies and military conflicts.

Intel said in a statement that it’s “deeply committed to advancing U.S. national and economic security interests and are making significant investments aligned with the President’s America First agenda.”

Tan also addressed the situation, saying in a message to employees that there was misinformation circulating about his past roles at Walden International and Cadence Design Systems and that he’s always followed proper standards.

Tan also said Intel was in contact with the Trump administration.

“We are engaging with the Administration to address the matters that have been raised and ensure they have the facts,” Tan said. “I fully share the President’s commitment to advancing U.S. national and economic security, I appreciate his leadership to advance these priorities, and I’m proud to lead a company that is so central to these goals.”.

The company’s stock rose slightly in premarket trading on Friday.

OpenAI on Thursday released the fifth generation of the artificial intelligence technology that powers ChatGPT, a product update that’s being closely watched as a measure of whether generative AI is advancing rapidly or hitting a plateau.

GPT-5 arrives more than two years after the March 2023 release of GPT-4, bookending a period of intense commercial investment, hype and worry over AI’s capabilities.

In anticipation, rival Anthropic released the latest version of its own chatbot, Claude, earlier in the week, part of a race with Google and other competitors in the U.S. and China to leapfrog each other on AI benchmarks. Meanwhile, longtime OpenAI partner Microsoft said it will incorporate GPT-5 into its own AI assistant, Copilot.

Expectations are high for the newest version of OpenAI’s flagship model because the San Francisco company has long positioned its technical advancements as a path toward artificial general intelligence, or AGI, a technology that is supposed to surpass humans at economically valuable work.

It is also trying to raise huge amounts of money to get there, in part to pay for the costly computer chips and data centers needed to build and run the technology.

OpenAI CEO Sam Altman described the new model as a “significant step along our path to AGI” but mostly focused on its usability to the 700 million people he says use ChatGPT each week.

“It’s like talking to an expert — a legitimate PhD-level expert in anything, any area you need, on demand,” Altman said at a launch event livestreamed Thursday.

It may take some time to see how people use the new model — now available, with usage limits, to anyone with a free ChatGPT account. The Thursday event focused heavily on ChatGPT’s use in coding, an area where Anthropic is seen as a leader, and featured a guest appearance by the CEO of coding software maker Cursor, an important Anthropic customer.

OpenAI’s presenters also spent time talking about safety improvements to make the chatbot “less deceptive” and stop it from producing harmful responses to “cleverly worded” prompts that could bypass its guardrails. The Associated Press reported Wednesday on a study that showed ChatGPT was providing dangerous information about drugs and self-harm to researchers posing as teenagers.

At a technical level, GPT-5 shows “modest but significant improvements” on the latest benchmarks, but when compared to GPT-4, it also looks very different and resets OpenAI’s flagship technology in a way that could set the stage for future innovations, said John Thickstun, an assistant professor of computer science at Cornell University.

“I’m not a believer that it’s the end of work and that AI is just going to solve all humanity’s problems for it, but I do think there’s still a lot of headroom for them, and other people in this space, to continue to improve the technology,” he said. “Not just capitalizing on the gains that have already been made.”

OpenAI started in 2015 as a nonprofit research laboratory to safely build AGI and has since incorporated a for-profit company with a valuation that has grown to $300 billion. The company has tried to change its structure since the nonprofit board ousted Altman in November 2023. He was reinstated days later.

It has not yet reported making a profit but has run into hurdles escaping its nonprofit roots, including scrutiny from the attorneys general in California and Delaware, who have oversight of nonprofits, and a lawsuit by Elon Musk, an early donor to and founder of OpenAI who now runs his own AI company.

Most recently, OpenAI has said it will turn its for-profit company into a public benefit corporation, which must balance the interests of shareholders and its mission.

OpenAI is the world’s third most valuable private company and a bellwether for the AI industry, with an “increasingly fragile moat” at the frontier of AI, according to banking giant JPMorgan Chase, which recently made a rare decision to cover the company despite it not being publicly traded.

The inability of a single AI developer to have a “sustained competitive edge” could increasingly force companies to compete on lowering the prices of their AI products, the bank said in a report last month.

——

The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP’s text archives.

SAN FRANCISCO (AP) — OpenAI on Thursday released the fifth generation of the artificial intelligence technology that powers ChatGPT, a product update that’s being closely watched as a measure of whether generative AI is advancing rapidly or hitting a plateau.

GPT-5 arrives more than two years after the March 2023 release of GPT-4, bookending a period of intense commercial investment, hype and worry over AI’s capabilities.

In anticipation, rival Anthropic released the latest version of its own chatbot, Claude, earlier in the week.

Expectations are high for the newest version of OpenAI’s flagship model because the San Francisco company has long positioned its technical advancements as a path toward artificial general intelligence, or AGI, a technology that is supposed to surpass humans at economically valuable work.

It is also trying to raise huge amounts of money to get there, in part to pay for the costly computer chips and data centers needed to build and run the technology.

OpenAI Sam Altman described the new model as a “significant step along our path to AGI” but mostly focused on its usability to the 700 million people he says use ChatGPT each week.

“It’s like talking to an expert — a legitimate PhD-level expert in anything, any area you need, on demand,” Altman said at a launch event livestreamed Thursday.

OpenAI started in 2015 as a nonprofit research laboratory to safely build AGI and has since incorporated a for-profit company with a valuation that has grown to $300 billion. The company has tried to change its structure since the nonprofit board ousted its Altman in Nov. 2023. He was reinstated days later and continues to lead OpenAI.

It has run into hurdles escaping its nonprofit roots, including scrutiny from the attorneys general in California and Delaware, who have oversight of nonprofits, and a lawsuit by Elon Musk, an early donor to and founder of OpenAI.

Most recently, OpenAI has said it will turn its for-profit company into a public benefit corporation, which must balance the interests of shareholders and its mission.

President Donald Trump’s ambiguous plans for 100% tariffs on computer chips that aren’t made in the U.S. are stoking confusion among businesses and trading partners — boosting stocks for leading semiconductor companies while leaving smaller producers scrambling to understand the implications.

“We are still waiting for official guidance,” said Limor Fried, founder and engineer at Adafruit Industries, a small electronics maker in New York.

The chips that go into Adafruit’s products come through U.S. sales and distribution companies as well as direct from companies in the Philippines and Taiwan.

If those chips aren’t exempt from tariffs, “it would increase the costs that go into our designs as the semiconductors are the most expensive component in our assemblies,” Fried said. “For many of these tariffs, we often have to wait until we get a bill to know our exposure, and then we adjust our pricing to account for the increases.”

The U.S. imports a relatively small number of chips because most of the foreign-made chips in a device — from an iPhone to a car — were already assembled into a product, or part of a product, before it landed in the country.

“The real question everybody in the industry is asking is whether there will be a component tariff, where the chips in a device would require some sort of separate tariff calculation,” said Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics.

Trump said Wednesday that companies that “made a commitment to build” in the U.S. would be spared the import tax, even if they are not yet producing those chips in American factories.

“We’ll be putting a tariff of approximately 100% on chips and semiconductors,” Trump said in the Oval Office while meeting with Apple CEO Tim Cook. “But if you’re building in the United States of America, there’s no charge.”

Wall Street investors interpreted that as good news not just for U.S. companies like Intel and Nvidia, but also for the biggest Asian chipmakers like Samsung and Taiwan Semiconductor Manufacturing Company that have been working to build U.S. factories.

But it left greater uncertainty for smaller chipmakers in Europe and Asia that have little exposure to the artificial intelligence boom but still make semiconductors inserted into essential products like cars or washing machines.

German chipmaker Infineon Technologies, which supplies chips to the auto industry, said in an emailed statement Thursday that it “can’t speculate about potential semiconductor tariffs” and Trump’s announcement, “as no official documents have been published at this point.”

These producers “probably aren’t large enough to get on the map for an exemption and quite probably wouldn’t have the kind of excess capital and margins to be able to add investment at a large scale into the United States,” Chorzempa said.

It’s also not clear how the chip-specific tariffs would apply to trading partners that already made broader deals with Trump — such as agreements with the European Union, Japan and South Korea that tax most goods at 15%.

A trade group, the Semiconductor Industry Association, said Thursday it was “eager to learn more” about the planned chip tariffs, “including the scope and structure of exemptions.”

The announcement came more than three months after Trump temporarily exempted most electronics from his administration’s most onerous tariffs.

During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to higher inflation. Chorzempa said chip tariffs could again raise prices by hundreds of dollars per vehicle if the semiconductors inside a car are not exempt.

“There’s a chip that allows you to open and close the window,” Chorzempa said. “There’s a chip that is running the entertainment system. There is a chip that’s kind of running all the electronics. There are chips, especially in EVs, that are doing power management, all that kind of stuff.”

Much of the investment into building U.S. chip factories began with the bipartisan CHIPS and Science Act that President Joe Biden signed into law in 2022, providing more than $50 billion to support new computer chip plants, fund research and train workers for the industry.

Trump has vocally opposed those financial incentives and taken a different approach, betting that the threat of dramatically higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for electronics.

Trump’s announcement could be a signal for other chipmakers to imitate the investments that companies like South Korea’s Samsung are making, said Long Le, a business professor at Santa Clara University.

But with China’s SMIC and Huawei unlikely to be exempted, it could also give the Trump administration “more leverage at the trading table” ahead of an upcoming deal with China, he said.

Shares of Intel slumped Thursday after President Donald Trump said in a social media post that the chipmaker’s CEO needs to resign.

“The CEO of Intel is highly CONFLICTED and must resign, immediately,” Trump posted on Truth Social. “There is no other solution to this problem. Thank you for your attention to this problem!”

Trump made the post after Sen. Tom Cotton sent a letter to Intel Chairman Frank Yeary expressing concern over CEO Lip-Bu Tan’s investments and ties to semiconductor firms that are reportedly linked to the Chinese Communist Party and the People’s Liberation Army, and asked the board whether Tan had divested his interests in these companies to eliminate any conflicts of interest.

It’s not immediately clear if Tan, who took over as Intel’s CEO in March, has divested his interests in the companies.

In a statement, Intel said it’s “deeply committed to advancing U.S. national and economic security interests and are making significant investments aligned with the President’s America First agenda.”

“In March 2025, Intel appointed Lip-Bu Tan as its new CEO,” Cotton wrote in the letter. “Mr. Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms. At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army.”

Cotton specifically called out Tan’s recent leadership of Cadence Design Systems in the letter. According to the U.S. Department of Justice, Cadence, in July, agreed to plead guilty to resolve charges that it violated export controls rules to sell hardware and software to China’s National University of Defense Technology, which is linked to the Chinese military. Tan was the CEO of Cadence when the company violated the rules between 2015 and 2021.

The U.S. Department of Commerce’s Bureau of Industry and Security also fined Candence $95 million for the same breaches, saying Cadence admitted that “employees of its Chinese subsidiary knowingly transferred sensitive U.S. technology to entities that develop supercomputers in support of China’s military modernization and nuclear weapons programs.”

Cadence did not immediately respond to AP requests.

Tan previously launched the venture capital firm Walden International in 1987 to focus on funding tech start-ups, including chip makers. China’s state media has described Tan as “actively” devoted to Chinese and Asian markets, having invested not only in the Taiwan Semiconductor Manufacturing Company but also China’s state-owned enterprise SMIC, which seeks to advance China’s chipmaking capabilities.

The demands made by Trump and Cotton come as economic and political rivalries between the U.S. and China increasingly focus on the competition over chips, AI and other digital technologies that experts say will shape future economies and military conflicts.

Cotton, the chairman of the Senate Intelligence Committee, has raised concerns that Chinese spies could be working at tech companies and defense contractors, using their positions to steal secrets or plant digital backdoors that give China access to classified systems and networks.

On Thursday the Arkansas Republican wrote to the Department of Defense urging Defense Secrectary Pete Hegseth to ban all non-U.S. citizens from jobs allowing them to access DoD networks. He has also demanded an investigation into Chinese citizens working for defense contractors.

“The U.S. government recognizes that China’s cyber capabilities pose one of the most aggressive and dangerous threats to the United States, as evidenced by infiltration of our critical infrastructure, telecommunications networks, and supply chains,” Cotton wrote in an earlier letter calling on the Pentagon to conduct the investigation.

National security officials have linked China’s government to hacking campaigns targeting prominent Americans and critical U.S. systems.

“U.S. companies who receive government grants should be responsible stewards of taxpayer dollars and adhere to strict security regulations,” Cotton wrote on the social platform X.

Intel had been a beneficiary of the Biden administration’s CHIPS Act, receiving more than $8 billion in federal funding to build computer chip plants around the country.

Shares of the California company slid 3.5%, while markets, particularly the tech-heavy Nasdaq, gained ground.

Founded in 1968 at the start of the PC revolution, Intel missed the technological shift to mobile computing triggered by Apple’s 2007 release of the iPhone, and it’s lagged more nimble chipmakers. Intel’s troubles have been magnified since the advent of artificial intelligence — a booming field where the chips made by once-smaller rival Nvidia have become tech’s hottest commodity.

Intel is shedding thousands of workers and cutting expenses — including some domestic semiconductor manufacturing capabilities — as Tan tries to revive the fortunes of the struggling chipmaker.

Lesley Mathis knows what her daughter said was wrong. But she never expected the 13-year-old girl would get arrested for it.

The teenage girl made an offensive joke while chatting online with her classmates, triggering the school’s surveillance software.

Before the morning was even over, the Tennessee eighth grader was under arrest. She was interrogated, strip-searched and spent the night in a jail cell, her mother says.

Earlier in the day, her friends had teased the teen about her tanned complexion and called her “Mexican,” even though she’s not. When a friend asked what she was planning for Thursday, she wrote: “on Thursday we kill all the Mexico’s.”

Mathis said the comments were “wrong” and “stupid,” but context showed they were not a threat.

“It made me feel like, is this the America we live in?” Mathis said of her daughter’s arrest. “And it was this stupid, stupid technology that is just going through picking up random words and not looking at context.”

Surveillance systems in American schools increasingly monitor everything students write on school accounts and devices. Thousands of school districts across the country use software like Gaggle and Lightspeed Alert to track kids’ online activities, looking for signs they might hurt themselves or others. With the help of artificial intelligence, technology can dip into online conversations and immediately notify both school officials and law enforcement.

Educators say the technology has saved lives. But critics warn it can criminalize children for careless words.

“It has routinized law enforcement access and presence in students’ lives, including in their home,” said Elizabeth Laird, a director at the Center for Democracy and Technology.

Schools ratchet up vigilance for threats

In a country weary of school shootings, several states have taken a harder line on threats to schools. Among them is Tennessee, which passed a 2023 zero-tolerance law requiring any threat of mass violence against a school to be reported immediately to law enforcement.

The 13-year-old girl arrested in August 2023 had been texting with friends on a chat function tied to her school email at Fairview Middle School, which uses Gaggle to monitor students’ accounts. (The Associated Press is withholding the girl’s name to protect her privacy. The school district did not respond to a request for comment.)

Taken to jail, the teen was interrogated and strip-searched, and her parents weren’t allowed to talk to her until the next day, according to a lawsuit they filed against the school system. She didn’t know why her parents weren’t there.

“She told me afterwards, ‘I thought you hated me.’ That kind of haunts you,” said Mathis, the girl’s mother.

A court ordered eight weeks of house arrest, a psychological evaluation and 20 days at an alternative school for the girl.

Gaggle’s CEO, Jeff Patterson, said in an interview that the school system did not use Gaggle the way it is intended. The purpose is to find early warning signs and intervene before problems escalate to law enforcement, he said.

“I wish that was treated as a teachable moment, not a law enforcement moment,” said Patterson.

Private student chats face unexpected scrutiny

Students who think they are chatting privately among friends often do not realize they are under constant surveillance, said Shahar Pasch, an education lawyer in Florida.

One teenage girl she represented made a joke about school shootings on a private Snapchat story. Snapchat’s automated detection software picked up the comment, the company alerted the FBI, and the girl was arrested on school grounds within hours.

Alexa Manganiotis, 16, said she was startled by how quickly monitoring software works. West Palm Beach’s Dreyfoos School of the Arts, which she attends, last year piloted Lightspeed Alert, a surveillance program. Interviewing a teacher for her school newspaper, Alexa discovered two students once typed something threatening about that teacher on a school computer, then deleted it. Lightspeed picked it up, and “they were taken away like five minutes later,” Alexa said.

Teenagers face steeper consequences than adults for what they write online, Alexa said.

“If an adult makes a super racist joke that’s threatening on their computer, they can delete it, and they wouldn’t be arrested,” she said.

Amy Bennett, chief of staff for Lightspeed Systems, said that the software helps understaffed schools “be proactive rather than punitive” by identifying early warning signs of bullying, self-harm, violence or abuse.

The technology can also involve law enforcement in responses to mental health crises. In Florida’s Polk County Schools, a district of more than 100,000 students, the school safety program received nearly 500 Gaggle alerts over four years, officers said in public Board of Education meetings. This led to 72 involuntary hospitalization cases under the Baker Act, a state law that allows authorities to require mental health evaluations for people against their will if they pose a risk to themselves or others.

“A really high number of children who experience involuntary examination remember it as a really traumatic and damaging experience — not something that helps them with their mental health care,” said Sam Boyd, an attorney with the Southern Poverty Law Center. The Polk and West Palm Beach school districts did not provide comments.

An analysis shows a high rate of false alarms

Information that could allow schools to assess the software’s effectiveness, such as the rate of false alerts, is closely held by technology companies and unavailable publicly unless schools track the data themselves.

Gaggle alerted more than 1,200 incidents to the Lawrence, Kansas, school district in a recent 10-month period. But almost two-thirds of those alerts were deemed by school officials to be nonissues — including over 200 false alarms from student homework, according to an Associated Press analysis of data received via a public records request.

Students in one photography class were called to the principal’s office over concerns Gaggle had detected nudity. The photos had been automatically deleted from the students’ Google Drives, but students who had backups of the flagged images on their own devices showed it was a false alarm. District officials said they later adjusted the software’s settings to reduce false alerts.

Natasha Torkzaban, who graduated in 2024, said she was flagged for editing a friend’s college essay because it had the words “mental health.”

“I think ideally we wouldn’t stick a new and shiny solution of AI on a deep-rooted issue of teenage mental health and the suicide rates in America, but that’s where we’re at right now,” Torkzaban said. She was among a group of student journalists and artists at Lawrence High School who filed a lawsuit against the school system last week, alleging Gaggle subjected them to unconstitutional surveillance.

School officials have said they take concerns about Gaggle seriously, but also say the technology has detected dozens of imminent threats of suicide or violence.

“Sometimes you have to look at the trade for the greater good,” said Board of Education member Anne Costello in a July 2024 board meeting.

Two years after their ordeal, Mathis said her daughter is doing better, although she’s still “terrified” of running into one of the school officers who arrested her. One bright spot, she said, was the compassion of the teachers at her daughter’s alternative school. They took time every day to let the kids share their feelings and frustrations, without judgment.

“It’s like we just want kids to be these little soldiers, and they’re not,” said Mathis. “They’re just humans.”

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This reporting reviewed school board meetings posted on YouTube, courtesy of DistrictView, a dataset created by researchers Tyler Simko, Mirya Holman and Rebecca Johnson.

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The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

Roblox, the online gaming platform wildly popular with children and teenagers, is rolling out an open-source version of an artificial intelligence system it says can help preemptively detect predatory language in game chats.

The move comes as the company faces lawsuits and criticism accusing it of not doing enough to protect children from predators. For instance, a lawsuit filed last month in Iowa alleges that a 13-year-old girl was introduced to an adult predator on Roblox, then kidnapped and trafficked across multiple states and raped. The suit, filed in Iowa District Court in Polk County, claims that Roblox’s design features make children who use it “easy prey for pedophiles.”

Roblox says it strives to make its systems as safe as possible by default but notes that “no system is perfect, and one of the biggest challenges in the industry is to detect critical harms like potential child endangerment.”

The AI system, called Sentinel, helps detect early signs of possible child endangerment, such as sexually exploitative language. Roblox says the system has led the company to submit 1,200 reports of potential attempts at child exploitation to the National Center for Missing and Exploited Children in the first half of 2025. The company is now in the process of open-sourcing it so other platforms can use it too.

Preemptively detecting possible dangers to kids can be tricky for AI systems — and humans, too — because conversations can seem innocuous at first. Questions like “how old are you?” or “where are you from?” wouldn’t necessarily raise red flags on their own, but when put in context over the course of a longer conversation, they can take on a different meaning.

Roblox, which has more than 111 million monthly users, doesn’t allow users to share videos or images in chats and tries to block any personal information such as phone numbers, though — as with most moderation rules — people constantly find ways to get around such safeguards.

It also doesn’t allow kids under 13 to chat with other users outside of games unless they have explicit parental permission — and unlike many other platforms, it does not encrypt private chat conversations, so it can monitor and moderate them.

“We’ve had filters in place all along, but those filters tend to focus on what is said in a single line of text or within just a few lines of text. And that’s really good for doing things like blocking profanity and blocking different types of abusive language and things like that,” said Matt Kaufman, chief safety officer at Roblox. “But when you’re thinking about things related to child endangerment or grooming, the types of behaviors you’re looking at manifest over a very long period of time.”

Sentinel captures one-minute snapshots of chats across Roblox — about 6 billion messages per day — and analyzes them for potential harms. To do this, Roblox says it developed two indexes — one made up of benign messages and, the other, chats that were determined to contain child endangerment violations. Roblox says this lets the system recognize harmful patterns that go beyond simply flagging certain words or phrases, taking the entire conversation into context.

“That index gets better as we detect more bad actors, we just continuously update that index. Then we have another sample of what does a normal, regular user do?” said Naren Koneru, vice president of engineering for trust and safety at Roblox.

As users are chatting, the system keeps score — are they closer to the positive cluster or the negative cluster?

“It doesn’t happen on one message because you just send one message, but it happens because of all of your days’ interactions are leading towards one of these two,” Koneru said. “Then we say, okay, maybe this user is somebody who we need to take a much closer look at, and then we go pull all of their other conversations, other friends, and the games that they played, and all of those things.”

Humans review risky interactions and flag to law enforcement accordingly.