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Telegram and X back down
Score this one Nation-States 2, Tech Tycoons 0?
Pavel Durov, the CEO of the messaging app Telegram who was arrested recently in France on charges that his platform facilitated criminal activity and was refusing to help law enforcement investigate, has changed his tune.
After initially claiming it was “absurd” to hold a platform responsible for illicit content, Telegram now says it will share information with law enforcement “in response to valid legal requests.”
The about-face came just days after self-styled “free speech” crusader Elon Muskclimbed down in his battle with Brazil. To refresh: Last month, Musk rejected a Brazilian court order for X to deactivate certain disinformation accounts, refused to pay relevant fines, removed X’s local legal rep, and launched a meme war against Brazil’s controversial disinformation czar.
As a result, X was banned outright in the 200-million-strong country, and that seems to have turned the tables. Now, the company is reportedly ready to take down the accounts, reappoint a rep in Brazil, and pay fines.
Depending on your politics, you may see all of this as a victory for the nation-state (nearly undefeated since the Peace of Westphalia, as GZERO’s Matt Kendrick points out) or as a hit to free speech and privacy. What’s your view? Share with us here.
Three ways to look at Brazil’s fight with Elon Musk
What on Earth is going on in Brazil? The world’s richest man, Elon Musk, is locked in a high-profile, increasingly nasty clash with Latin America’s largest economy, which has recently banned Musk’s X platform.
There are strong feelings and spicy memes. The X boss has accused his main opponent, Brazilian Supreme Court Justice Alexandre de Moraes, of being “Voldemort” and “Darth Vader.” The dispute has even reached low-Earth orbit, ensnaring Musk’s Starlink satellites.
There are a few different ways to understand the spat – as a fight over speech, over sovereignty, or over egos. Each sheds light on a bigger issue in the increasingly fraught relationship between tech companies and national governments.
But first, the backstory.
For five years, Moraes has been investigating online disinformation and perceived online threats to Brazil’s democracy.
He has focused particular attention on accounts related, or sympathetic, to former President Jair Bolsonaro, the right-wing firebrand whose followers – whipped into a frenzy by (false) online allegations of vote rigging – ransacked Congress after he lost the 2022 election.
Moraes – whose prominent brow and perfectly bald pate do give him a bit of an Orlokian air, even if Voldemort is a stretch – has ordered raids on politicians’ homes, frozen their bank accounts, and even got Bolsonaro himself banned from politics for eight years.
His supporters say he’s fighting to protect democracy in an extremely online country that has a recent history of dictatorship. His critics say he’s playing loose with the law, overreaching, and pursuing an ideological agenda that suppresses free speech.
Enter Musk.
Not long ago, Moraes ordered X to suspend several popular accounts without naming them or explaining why. Musk, who now styles himself as a free speech defender (so long as he isn’t doing the defending in, say, India or Turkey, where he has complied with government demands to ban content), said the orders were illegal. He laid off a bunch of local staff rather than comply (while still leaving the service running).
Moraes, in turn, shut down X entirely in Brazil on the grounds that the company now lacked a local legal representative. As of a week ago, X no longer functions there. For X-ers in the rest of the world, the site has run extensive threads on what they say is Moraes’ overreach.
Ordinary Brazilians are split over the ban, but to be fair, X isn’t even among the top five social media apps in the country. (If you know Brazil, you know that if Moraes were to shut down, say, WhatsApp, there would either be a revolution or the country would simply evaporate in 24 hours.) Things could stay like this for a while.
So what’s this all about?
View one: It’s about speech! It’s no secret that governments around the world are grappling with the security and political stability implications of massive, unfiltered communications platforms where the velocity and reach of truth, lies, opinions, and cat memes is simply unprecedented.
“There’s a common thread of governments these days getting impatient with the platforms’ inability to self-police,” says Alexis Serfaty, a technology policy expert at Eurasia Group. “And they’re trying to act against a range of threats that they see, from public safety, to public health, and even to political stability.”
This explains X’s simultaneous legal battle with the EU over content moderation, as well as France’s charges against Telegram, which it accuses of prioritizing free speech over public safety and respect for local laws.
For a democracy, Brazil has especially expansive rules on what the government can try to root out – critics point out that the country now joins Russia, China, and Iran on the list of places where X is banned.
And if companies want to be there, they have to follow those rules, sure. But in the broader perspective, is the opaque policing of speech like this really the best way to preserve a democracy?
View two: It’s about sovereignty! Moraes has said as much. But this isn’t your grandad’s clash between multinational companies and national governments. The big global companies of yore – oil, mining, manufacturing – operated in a small number of sectors and had little direct contact with the public at large. Today’s tech firms, by contrast, shape the discourse, perceptions, politics, commerce, and even romances of billions of people globally all day, every day.
That’s a new kind of power – a very smart and well-known person I work with has dubbed it the “Technopolar world” – and we haven’t figured out yet what the balance of that power is.
View three: It’s about me! Moraes and Musk are two of the biggest egos on the planet. Part of this fight is personal, but not in the way you might think: Each of these men sees the outcome of this conflict as setting a big precedent.
“It’ll be interesting to see what happens in Brazil,” says Serfaty, “because I think if a government has success enforcing a specific action against a specific company – does that encourage more regulatory or other kinds of enforcement action in different countries? Does that kind of give them a little bit of momentum to push that forward?”
Should it? Where are the right lines between speech and safety, companies and countries? Let me know your thoughts here, and I’ll run some of the best responses in an upcoming mailbag.
Brazil vs. Musk: Now in low Earth orbit
The battle between Brazil and Elon Musk has now reached the stars — or the Starlink, at least — as the billionaire’s satellite internet provider refuses orders from Brazil’s telecom regulator to cut access to X.
The background: Brazil’s Supreme Court last week ordered all internet providers in Latin America’s largest economy to cut access to X amid a broader clash with the company over an order to suspend accounts that the court says spread hate speech and disinformation.
That order came after X racked up some $3 million in related fines, which Brazil has now tried to collect by freezing the local assets of Starlink, a separate company from X.
Starlink says it won’t comply with the order to block X until those assets are unfrozen and has offered Brazilians free internet service while the dispute continues.
Brazil is one of X’s largest markets, with about 40 million monthly users. But both sides have dug in as this becomes a high-profile battle over free speech vs. national sovereignty.
What’s next? It’s hard for the Brazilian government to stop Starlink signals from reaching users, but it could shutter about two dozen ground stations in the country that are part of the company’s network …Hard Numbers: ChatGPTers double, Japan’s AI military, Google’s AI pop-ups, Magic money, Musk vs. Brazil
200 million: OpenAI says it now counts 200 million weekly users of ChatGPT, which has doubled in the past year. It also claims that 92% of Fortune 500 companies use its products for writing, coding, and organizational help.
59 billion: Japan’s military is having a recruitment problem. With only 10,000 of its citizens enlisting this year — half of its target — the government is investing $59 billion, a 7% yearly increase, to add additional capabilities including artificial intelligence. It’s spending $123 million alone on an AI surveillance system for its military bases.
17: A new report from the consultancy Authoritas found that Google is offering its AI Overviews — those pop-up AI-generated answers to users’ Googled questions — on 17% of user queries. The search engine company came under fire for its inaccurate AI-generated responses earlier this year and since then has reportedly reduced the frequency with which its suggested answers pop up.
320 million: The startup Magic, whose AI models generate computer code and automate software, raised $320 million in a funding round from former Google CEO Eric Schmidt, among others. The San Francisco-based firm also announced a partnership with Google to build two new supercomputers on the tech giant’s cloud platform.
24: X is now shut down in Brazil, the escalation of a legal dispute between the company’s owner, Elon Musk, and the country’s top court. Musk has criticized Brazil for requesting the company remove certain accounts. Supreme Court Justice Alexandre de Moraes on Friday gave Musk 24 hours to name a legal representative in the country or else face a national ban. Musk refused and, in response, posted an AI-generated image of de Moraes behind bars, writing, “One day, @Alexandre, this picture of you in prison will be real. Mark my words.”Trolling with power: Elon Musk’s online antics are getting real
Businessman, entrepreneur, and increasingly, a disruptive force in geopolitics.
Elon Musk, the owner of X, SpaceX, and Tesla, has never shied away from controversial political posts, but over these last few weeks, his online trolling has had very real-world consequences.
Last week, he amplified posts on X that fueled racist riots in the United Kingdom and prophesized that civil war in the country was inevitable. Today, he is reportedly set to interview former President Donald Trump on X, a sitdown that will generate hundreds of headlines in a presidential cycle in which the interviewer, Musk, has unabashedly chosen a side.
In the immediate aftermath of the assassination attempt in Pennsylvania last month, Musk took to his app to endorse Trump’s candidacy – shattering the norm of self-declared neutrality by the leaders of social media platforms. (Mark Zuckerberg, for example, is not nearly as vocal about his political views). And in July, Musk announced the creation of a political action committee, America Pac, that would “mostly but not entirely” support the Republican Party.
The South African-born investor has also signaled his disapproval of Trump’s opponent, Kamala Harris, and even disseminated a deep fake video purportedly showing Harris calling herself “the ultimate diversity hire.” He also suspended the account “White Dudes for Harris” on X after it held a massive fundraising call that raised more than $4 millionfor her campaign.
Musk’s political interventions on X have been particularly controversial in the UK, where his inflammatory posts have been linked to recent civil unrest. British officials have criticized Musk for spreading misinformation, including false claims that the murderer of three British girls – which fueled protests and riots last week – was a Muslim migrant. During the riots, “super sharers,” or accounts like Elon Musk’s with large followings, acted as “nodes” for disseminating this lie through their interaction with the far-right content.
Musk is also responsible for relaxing the content moderation guidelines on the site and reinstating many far-right accounts that acted as super-sharers of misinformation. For example, he unbanned Tommy Robinson, a fringe and four-times-jailed extreme-right British activist, who went viral during the riots. He also promoted Ashlea Simon – co-founder of a white supremacist group — who claimed UK Prime Minister Keir Starmer planned to send British rioters to detention camps in the Falkland Islands.
Can he be regulated? As a result of the riots, many political leaders, including Starmer, EU commissioners, and US senators, have called for an inquiry into social media’s role in spreading incendiary disinformation.
According to Scott Bade, a geo-technology expert at Eurasia Group, Musk is increasingly becoming a “geopolitical agent of chaos.” But Musk isn’t too powerful to regulate, says Bade. “The thing is, you’re not going to regulate Elon himself. You’re going to regulate the pieces of his empire.”
The Online Safety Act is already set to take effect in the UK at the end of the year and will require platforms to remove illegal content or be fined 10% of global annual turnover or £18 million, whichever is higher. In the wake of the riots, legislatures are considering tightening restrictions so companies can be sanctioned if they allow “legal but harmful” content such as misinformation to flourish.
“There is a clear consensus emerging in the aftermath of the riots that Musk and X are a problem, given the amount of misinformation, racial abuse, and incitement to violence that was spread on the platform,” says Eurasia Group Europe expert Mujtaba Rahman. “There will be a political and a policy response, but what shape that will take remains unclear for now.”
Hard Numbers: X’s neo-Nazi problem, China’s export extravaganza, America’s economic bounce, Oreo’s antitrust woes, Russia’s bumpy flights
5.3: China’s economy, the world’s second-largest, grew more than many experts expected, expanding by 5.3% compared to the same period last year. That beat analysts' predictions by 0.7 points. The boom was driven largely by huge investments in manufacturing for export – in particular solar panels, cars, and steel. Concerns remain about the persistent weakness of China’s property sector, but at this pace, China will comfortably hit its “around 5%” growth target.
2.7: Meanwhile, the world’s largest economy, the US, is projected to grow 2.7% this year, according to new IMF figures. That’s not quite on China’s level, but it’s still double the rate of any fellow members of the G7, a club of the world’s largest democratic economies. Coupled with China’s strong showing, the US economic boom has helped to stave off a global recession.
340 million: The company that owns Oreos is about to get dunked, it seems. An EU antitrust probe has found that Mondelez, the US-based company that also makes Toblerone bars and Cadbury chocolates, deliberately restricted the flow of its products between European countries in a bid to keep prices higher. The company has reportedly set aside €340 million ($360 million) for the coming fine.
20*: Flying in Russia is getting more dangerous but less fatal. Western sanctions on plane parts and servicing have caused a sharp rise in aircraft malfunctions, but Russia’s 20 air travel deaths in 2023 were still the lowest in a decade. The asterisk is for the late Yevgeny Prigozhin, of Wagner insurrection fame, who was killed along with nine others when his plane went down last August. Authorities say the possibility of foul play means the incident isn’t included as a conventional air travel death.
OK, Doomer
British PM Rishi Sunak hosted several world leaders, including UN Secretary-General António Guterres and US Vice President Kamala Harris, at last week’s AI Summit. But the biggest celebrity draw was his sit-down interview with billionaire Elon Musk — among the world’s richest men and the controlling force behind Tesla, SpaceX, and X, formerly known as Twitter.
Musk has long played it both ways on AI — he frequently warns of its “civilizational risks” while investing in the technology himself. Musk’s new AI company, xAI, notably released its first model to a group of testers this past weekend. (We don’t know much about xAI’s Grok yet, but Musk boasts that it has access to Twitter data and will “answer spicy questions that are rejected by most other AI systems.”)
Musk told Sunak he thinks AI will primarily be a “force for good” while at the same time warning that AI could be “the most destructive force in history.”
There’s a central tension in tech regulation ... between protecting against doomsday scenarios like the development of an all-powerful AI or one that causes nuclear destruction and the clear-and-present challenges confronting people now, such as algorithmic discrimination in hiring. Of course, regulators can try to solve both, but some critics have expressed consternation that too much time and energy is being spent catering to long-term threats while ignoring the dangers right in front of our faces.
In fact, one of the focal points of the Bletchley Declaration, last week’s agreement brokered by Sunak and signed by 28 countries including the US and China, is the potential for “catastrophic harm” caused by AI. Even US President Joe Biden — whose executive order did more to tackle the immediate challenges of AI than the UK-brokered declaration did — said he became much more concerned about AI after watching the latest “Mission Impossible” film, which features a murderous AI.
The thing is, the two sets of concerns – coming catastrophe vs. today’s problems – are not mutually exclusive. MIT professor Max Tegmark recently said that the people focused on looming catastrophe need to speed up their thinking a bit. “Those who are concerned about existential risks, loss of control, things like that, realize that to do something about it, they have to support those who are warning about immediate harms … to get them as allies to start putting safety standards in place.”
What We’re Ignoring: Revenge of the nerds
There’s growing evidence that the much-ballyhooed mixed martial arts battle between X-Man Elon Musk and Meta CEO Mark Zuckerberg may actually take place.
Musk first posted that he would be up for a cage match against Zuckerberg in June. Since then, the two moguls have traded multiple barbs on the topic. Now Zuckerberg, who trains in jiu jitsu, has shared a screenshot of a conversation with his wife Priscilla Chan in which he crows about installing a training cage in their backyard. (Her response: “I have been working on that grass for two years.”)
Not to be outdone, Musk posted to X that he is preparing for the fight by “lifting weights throughout the day,” and that the "Zuck v Musk fight will be live-streamed on X. All proceeds will go to charity for veterans.”
Zuckerberg says he is "not holding his breath" because he offered a date of Aug. 26 but didn't hear back. No word yet on whether Threads will attempt a rival broadcast. Stay tuned. Or don’t.