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Victoria Craig
In case you missed it, YouTube is the number one streaming platform in watch time in the US ahead of Netflix, Disney and Prime Video. For the second year in a row, there's only one YouTube.
Amrith Ramkumar
Hey T and B listeners, before we get started, heads up, we're going to be asking you a question at the top of each show for the next few weeks. Our goal here at Tech News Briefing is to keep you updated with the latest headlines and trends on all things tech. Now we want to know more about you, what you like about the show, and what more you'd like to hear from us. So our question this week is what kind of stories about tech do you want to hear more of business decision making, boardroom drama? How about peeking inside tech leaders lives or tech policy? If you're listening on Spotify, you can look for our poll under the episode description or you can send an email to tnbsj.com now onto the show. Welcome to Tech News briefing. It's Thursday, May 15th. I'm Victoria Craig for the Wall Street Journal. A controversial rule restricting the spread of US AI technology around the world has been canceled, but what comes in its place is still unclear. Then controlling your devices with just your thoughts isn't only the stuff of science fiction anymore. Our reporter has an exclusive look at how Apple is embracing development of brain implant control technology. But first, a once in a generation opportunity to lead the next industrial revolution and create high paying US Jobs. That is how chipmaking giant Nvidia described a US Commerce Department decision on Wednesday to rescind the so called AI diffusion rule. It's a Biden era policy that the Trump administration rolled back a day before it was due to go into effect. It would have imposed limits on how many AI chips US Companies could sell sell to other countries. Speaking at the Saudi US Investment Forum in Riyadh earlier this week, White House AI and crypto czar David Sachs explained why he believed the rule was flawed.
David Sachs
Imagine if Washington had created a diffusion rule for the iPhone because it was worried about bad guys somehow getting a hold of iPhones and every iPhone transaction had to be licensed in Washington. This technology would not have spread all over the world. And the diffusion of iPhones is a very good thing for the United States of America. I think in a similar way we want our technology to diffuse.
Amrith Ramkumar
WSJ reporter Amrith Ramkumar has been following the fallout of the rule since it was announced in January. Amrith this rule has been a controversial one, not just for US Tech companies, but ones outside the US that want to import these AI chips. So just bring us up to speed. Remind our listeners why this has been so controversial.
Ralph Winkler
In the final days of the Biden administration, their Commerce Department put out the super complicated rule that would limit how many chips, many countries and countries that are friendly with the U.S. the amount of advanced chips they could buy. A lot of companies thought that would limit their business opportunities abroad and push those countries to embrace Chinese companies like Huawei if they had easier access to those chips. So people were really upset and frustrated and they weren't really sure what the Trump administration was going to do. Last week, people basically found out that the Trump administration was going to completely rescind that Biden era rule, and then they'll come out with their own rule in the coming months. And we have reporting showing that one of the options they're considering is basically instead of having a tiered system where countries have caps on the amount they can buy, they're going to do a series of bilateral country to country chip purchase agreements. So so far, the early indications are based on the President's trip to the Middle east and the big chip deals with Nvidia and Advanced Micro Devices in Saudi Arabia and expected announcements to come in the UAE that this will all be good for US Companies because a lot of them were looking at caps in an uncertain environment. And now it seems like the administration with countries that are friendly with the US Is basically willing to take off a lot of the guardrails. So that's pushed up some of the stocks and there's a lot of enthusia. People in the national security community, though, are very cautious about this and they're unhappy in some cases because they worry that countries like the UAE could still send Nvidia chips or other sensitive technology to China. So there is this tension that will play out in the administration over time.
Amrith Ramkumar
Is there a blueprint for what kind of guardrails the US could put in place since it's now taking this rule away? For exactly what you just said, for preventing other countries from eventually just getting those chips in China's hands anyway, it's not super clear.
Ralph Winkler
We have reporting showing that the Commerce and the Commerce Department has said that they want to crack down on smuggling and how chips get routed through third party countries to China. But that's more on the enforcement side of these rules. And we've heard that whatever the Trump team decides to do, there will be language basically saying if these end up in China, you'll be in deep trouble. But again, that might not be the deterrent that some national security hawks want.
Amrith Ramkumar
Is there any indication how long some of these negotiations could take if they do adopt this country by country approach to rules making?
Ralph Winkler
People have said it could take up to a few months potentially to iron these out. And the assumption is that they'll start with big countries where US Firms do a lot of business and try to reach those deals that way. But a lot of this is evolving rapidly. So the Commerce Department could end up not doing a bunch of bilateral deals. We've heard like they're not too far along in the process. It's definitely going to take some time. And that's an issue because there's also evidence that countries like Malaysia are getting a lot more chips that are then going to China. Also, the technology is evolving so rapidly that a lot of the thresholds that are set for what's a high performing chip and what you can buy, those can be outdated in a short amount of time. So it's definitely a tricky one for.
Amrith Ramkumar
Commerce to figure out which countries are on the list of ones that could potentially be easier to strike first deals with.
Ralph Winkler
Well, they're definitely prioritizing again. This week they wanted to have good news in Saudi Arabia and the uae. So those are a few. And then there are many other allies that were in tier two under the old rule basically that people were very confused about and they thought shouldn't have such limits on chip access. So countries like India, even a bunch of European countries like Switzerland, Israel, you can go on and on.
Amrith Ramkumar
That was Amrit Ramkumar, a WSJ reporter covering tech and crypto policy. Coming up, Apple has joined with a startup that's developed a brain implant that will help people who can't use their hands to better use technology. Will tell you how after the break.
Victoria Craig
Did you know that every day people watch on average more than 1 billion hours of YouTube on their TV screens? That's because YouTube is where people go deep on all the content they love. There's only one YouTube.
Amrith Ramkumar
What if to use an iPhone, you never have to actually touch the device? The idea is becoming more plausible thanks to new technology Apple hopes to harness with a startup called Synchron and its implantable brain device. Ralph Winkler covers digital health for the Wall Street Journal. Ralph, just explain how this new technology could actually work.
Mark Jackson
Apple has always been big on accessibility features for disabled people. And they have something called switch control. On your iPhone, for instance, that literally switches control of the device. You know, normally you use a finger to scroll around the screen, or on your Mac you're using a mouse and it switches control to another input device, like a joystick. But in this case, they're gonna make switch control accessible via brain computer interfaces. So it's a neural signal that is being relayed, translated, and then relayed to the computer.
Amrith Ramkumar
And so this could make Apple's devices more accessible for tens of thousands of people, like you just said, through a brain implant. Can you just explain a little bit more for our listeners how that exactly will work? If you have the implant, how then can you control your devices? And what devices?
Mark Jackson
So there's a number of companies that are working on these next generation brain implants. They're called brain computer interfaces because they're an interface between your brain and a computer. Basically electrodes that are implanted inside your skull and that read neural signals. And the way they work is those neural signals are relayed to a chip which then relays the data to a decoding device. And that device, you basically trained this whole apparatus to understand which neural signals translate to actions in the real world. The first use of these devices is really to interact with technology. So the first company to do this was a company called Synchron.
Amrith Ramkumar
So how is Apple working with Synchron on this?
Mark Jackson
Well, Apple isn't going to put an implant in your brain. To be clear, a better way to think about it. Hearing aids. People with hearing aids wanted to be able to access their Apple devices. So in 2014, Apple creates a standard by which hearing aids connect via Bluetooth to your iPhone or to your other Apple devices. Makes a lot of sense, right? So I'm wearing AirPods. That's how I hear my conversations on the phone. And that's how people with hearing aids would do it. So let's just connect them. What we're talking about here is basically something similar where people who manufacture these devices will have an on ramp to the Apple devices. Apple is building the on ramp for them to make it easier for them to connect to its devices.
Amrith Ramkumar
And there have been some human trial participants who have had these kind of implants implanted into their brains. You spoke to one of those people. How have these early tests worked and what is their view about how they work?
Mark Jackson
I spoke to Mark Jackson, who has the synchron implant, and Mark says, look, the synchron implant can help a little bit. It's slow. This is the beginning of a clinical trial of this device. It's going to be a few years yet before it's proved out. It gets commercial approval, and lots of people are able to get these implanted. So right now with the tests, Mark is Saying, look, it's slow going. It basically mimics scrolling and clicking. It doesn't quite do what you do with a mouse, where you can move the cursor around and select something. Imagine that you're in Netflix and there are rows of icons. What Switch Control might do is select the whole screen and then you think click, and then it narrows it to, okay, you want this row. You want dramas? Well, all right, now I'm going to run the selection tool over each individual one in that row, because I know you selected that row. And then when you get to the one that you want, you can think, click again. So then drama. I just picked Marriage Story, and that's the movie I'm going to watch. But that's not as fast as scrolling with the scroll wheel and moving across with your mouse. And with if you want to type out a message, you're not typing on a keyboard very quickly. You're having the selection tool go across. Okay, I want the first row of letters. I think click, okay, A through G. I want F or I want E or something. But all that said, it still gives him an ability to interact with devices in a way he hasn't been able to.
Amrith Ramkumar
So there's still a ways to go with the development of these kinds of implants. How far away is this technology from becoming more widely available?
Mark Jackson
Synchron says theirs is several years away. Morgan Stanley thinks that commercial approval for BCIs won't come before 2030. Synchron says they can beat that.
Amrith Ramkumar
That was WSJ Digital Health reporter Ralph Winkler. And that's it for Tech News Briefing. Today's show was produced by Julie Chang with supervising producer Emily Martosi. I'm Victoria Craig for the Wall Street Journal. We'll be back this afternoon with TNB Tech Minute. Thanks for listening.
Victoria Craig
The world's biggest creators, the world's biggest moments, all delivered to the world's biggest collection of passionate fans, providing unparalleled opportunities for your brand. There's only one YouTube.
Episode Title: Apple Embraces Brain-Implant Technology to Control Devices
Host: The Wall Street Journal
Release Date: May 15, 2025
In this episode of the WSJ Tech News Briefing, host Victoria Craig and reporter Amrith Ramkumar delve into two significant developments shaping the tech landscape. The first segment discusses the U.S. Commerce Department's decision to rescind the controversial AI diffusion rule and its implications for the chip industry and international relations. The second segment explores Apple's pioneering efforts in brain-implant technology, aimed at enhancing device accessibility for individuals with disabilities.
Key Discussion Points:
Background of the AI Diffusion Rule: Originally instituted during the Biden administration and briefly upheld by the Trump administration, the AI diffusion rule aimed to limit the export of advanced AI chips to certain countries, potentially hindering U.S. tech companies' global business opportunities.
Commerce Department's Decision: Nvidia lauded the rescission as a "once in a generation opportunity" to lead the next industrial revolution and create high-paying U.S. jobs. The removal of the rule removes caps on AI chip sales to friendly nations, fostering more straightforward bilateral agreements.
National Security Concerns: Despite the optimistic outlook from industry leaders, national security experts express apprehension. There are fears that relaxed controls might allow sensitive technologies to eventually reach adversarial nations like China through third-party transactions.
Notable Quotes:
David Sachs, White House AI and Crypto Czar [02:08]:
“Imagine if Washington had created a diffusion rule for the iPhone because it was worried about bad guys somehow getting a hold of iPhones and every iPhone transaction had to be licensed in Washington. This technology would not have spread all over the world. And the diffusion of iPhones is a very good thing for the United States of America. I think in a similar way we want our technology to diffuse.”
Ralph Winkler, WSJ Reporter [02:49]:
“A lot of companies thought that would limit their business opportunities abroad and push those countries to embrace Chinese companies like Huawei if they had easier access to those chips.”
Implications:
Stock Market Reaction: The announcement led to a surge in tech stocks, reflecting investor confidence in the new bilateral approach.
Future Negotiations: The Commerce Department plans to initiate country-specific agreements, prioritizing major allies like Saudi Arabia and the UAE. However, the process is expected to be lengthy, potentially taking several months to finalize.
Technological Evolution: Rapid advancements in AI chip technology pose challenges in setting and maintaining effective export controls, as definitions of high-performing chips may quickly become outdated.
Key Discussion Points:
Collaboration with Synchron: Apple has partnered with the startup Synchron to develop brain-computer interface (BCI) technology, enabling individuals who cannot use their hands to control Apple devices through neural signals.
Functionality of the Technology: The implantable device reads neural signals via electrodes implanted in the skull. These signals are processed and translated into commands that can interact with Apple devices, such as scrolling or selecting items on an iPhone or Mac.
Current Status and Future Prospects: Early trials demonstrate the potential of the technology, albeit at a slower pace compared to traditional input methods. Commercial availability is anticipated to be several years away, with some estimates suggesting approval might not occur before 2030, though Synchron aims to expedite this timeline.
Notable Quotes:
Mark Jackson, Synchron User [10:24]:
“The synchron implant can help a little bit. It's slow. This is the beginning of a clinical trial of this device. It's going to be a few years yet before it's proved out. It gets commercial approval, and lots of people are able to get these implanted.”
Mark Jackson on Functionality [09:32]:
“Apple is building the on ramp for them to make it easier for them to connect to its devices.”
User Experience Insight: Mark Jackson shared his personal experience with the implant, highlighting its current limitations. While the device allows him to interact with technology in ways previously unattainable, the process remains cumbersome compared to conventional input methods. Actions like selecting a movie on Netflix involve multiple thought commands, making tasks like scrolling and typing considerably slower.
Future Developments: Apple's integration of BCI technology represents a significant step towards enhancing device accessibility. By establishing standards and frameworks for connectivity, Apple is facilitating the seamless incorporation of advanced assistive technologies into its ecosystem, promising greater independence and interaction for users with disabilities.
This episode of WSJ Tech News Briefing shed light on pivotal advancements and policy shifts within the tech industry. The rescission of the AI diffusion rule opens new avenues for U.S. tech companies, albeit amidst ongoing security debates. Concurrently, Apple's venture into brain-implant technology underscores the company's commitment to accessibility and innovation. As these stories unfold, they underscore the dynamic interplay between technological progress, regulatory frameworks, and societal impact.
For more detailed insights and ongoing coverage, stay tuned to WSJ Tech News Briefing every weekday.