WSJ Tech News Briefing: "Fighting Fires in L.A. and Rumors Online"
Released on January 14, 2025

1. U.S. Strengthens Export Controls to Curb China's AI and Chip Advancements

The episode opens with Bell Lin introducing a critical development in U.S. technology policy. The Biden administration has enacted stringent new export controls aimed at limiting China's progress in artificial intelligence (AI) and semiconductor manufacturing. These regulations represent the culmination of a multi-year strategy to use export restrictions as a tool to hinder China’s technological and military capabilities.

Key Points:

• Scope of New Regulations:
  The updated rules require U.S. companies to obtain government approval before exporting specific information related to AI models and establishing substantial AI computing facilities abroad. Unlike previous measures that primarily targeted exports directly to China, the new regulations extend restrictions to over 120 countries, including allies like the U.K., France, and Germany, preventing them from importing certain AI chips into their data centers for AI training purposes.

• National Security Concerns:
  Asa Fitch, a Wall Street Journal reporter, elaborates on the motivations behind these regulations. He states, “The concern is a national security concern. Largely the US Government is worried that if China is allowed to access the most sophisticated AI chips and AI models, they could use those models and chips to develop their military, to develop things like weapons, bioweapons, chemical weapons, nuclear weapons even” (01:52). This highlights the administration's intent to prevent the militarization of advanced AI technologies by China.

• Broader Impact on Global Technology Transfer:
  The new rules aim to close loopholes that allowed China to potentially access high-end AI resources through other nations. By restricting over 120 countries, the U.S. seeks to create a more comprehensive barrier against the proliferation of advanced AI technologies that could bolster China’s military and economic power.

Tech Industry Response:

• Nvidia's Backlash:
  The industry response has been predominantly negative, with Nvidia leading the charge in opposition. Fitch notes, “Nvidia is threatened the most by these things. Nvidia has a strategy of exporting chips to countries like those in the Middle East that have large pools of capital and want to invest in AI. That revenue could be imperiled” (04:27). Nvidia argues that these restrictions could inadvertently drive countries to seek AI technologies from China, potentially undermining innovation and the very goals of the export controls.

• Potential Policy Reversals:
  Fitch also points out the temporal nature of these regulations, mentioning, “They will only take effect in 120 days, around four months. And that means that they could change. And also there's a new administration coming in Washington” (04:29). The impending change in administration could lead to alterations or even the rollback of these export controls, introducing uncertainty into the tech sector.

2. Combating Online Rumors Amidst the L.A. Fires

Transitioning from international tech policy, the briefing delves into the challenges public officials face in addressing misinformation during natural disasters. The Los Angeles fires have become a hotbed for online rumors, complicating crisis management and public communication.

Key Points:

• Nature of Misinformation:
  Reporter Scott Calvert outlines various falsehoods circulating about the fires. Examples include incorrect reports of iconic landmarks like the Getty Villa Museum being engulfed in flames and AI-generated images of the Hollywood sign ablaze. One particularly viral rumor falsely claimed that the LA Fire Department was using “quite ladies handbags” to combat the fires due to donated supplies to Ukraine (06:34).

• Official Responses:
  Public officials, including the LA Fire Department, are actively debunking these rumors on social media. Calvert explains, “He’s posted several times saying, you know, clearing up misinformation” (07:58). The department focuses on providing accurate information regarding evacuation routes and fire status updates to mitigate confusion and maintain public trust.

• Impact of Social Media Platforms:
  The role of platforms like Meta and X (formerly Twitter) is scrutinized for their handling of misinformation. Calvert notes the coincidence of Meta’s announcement to relax fact-checking policies with the outbreak of the fires, exacerbating the spread of false information (09:36). Similarly, since Elon Musk's acquisition, X has seen reduced content moderation, allowing conspiratorial content to flourish.

• Broader Trends in Misinformation Management:
  The episode highlights a shift in how rumors are addressed, moving from a passive approach of ignoring false claims to a proactive strategy of countering misinformation. For instance, after Hurricane Helene, North Carolina established a dedicated webpage to address and dispel conspiracy theories, reflecting an evolving tactic in public communication (10:50).

Risks and Consequences:

• Erosion of Trust:
  Persistent misinformation can erode public confidence in governmental responses, leading to poor decision-making during crises. Calvert emphasizes, “It can undermine trust in the government's ability to respond to this” (08:53).

• Amplification by Social Media Policies:
  Changes in platform policies that favor free expression over content moderation have inadvertently facilitated the spread of dangerous rumors, making the job of public officials more challenging.

Concluding Insights:

Bell Lin wraps up the episode by underscoring the significance of these issues in the broader tech landscape. The intertwining of global tech policies and local crisis management illustrates the pervasive influence of technology on both international relations and everyday lives. As misinformation and technological advancements continue to evolve, the role of responsible governance and corporate accountability remains paramount.

Produced by Julie Chang with supervising producer Kathryn Millsop. Reporting by Asa Fitch and Scott Calvert.