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Jon Keegan

Chinese drone maker DJI sues to overturn FCC foreign drone ban

Chinese drone maker DJI has filed a lawsuit against the FCC challenging the December 2025 decision that effectively bans all foreign drones and components from the US market. DJI and all other foreign drone makers were added to the FCC’s “covered list” of equipment and services that the agency says “pose an unacceptable risk to the national security of the United States.”

In a lawsuit filed with the US Court of Appeals for the Ninth Circuit, DJI argues that the company is “severely harmed” by the ruling, and seeks review of the decision: “The FCC exceeded its statutory authority, failed to observe statutorily required procedures, and violated the Fifth Amendment when it purported to add DJI’s products to the Covered List.”

In a statement to Sherwood News, a DJI spokesperson said:

“The FCC can add products to the Covered List only when they present a national security threat, yet it has never identified any threat associated with DJI or its products. Despite repeated efforts to engage with the government, DJI has never been given the chance to provide information to address or refute any concerns. These procedural and substantive deficiencies violate the Constitution and federal law.”

The FCC decision has cleared the way for the nascent US drone industry just as the US military urgently races to catch up in the race to acquire drones.

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Google will supply AI models to Pentagon in classified deal, per The Information

Google has become the latest tech company to ink an agreement to supply the Department of Defense (War) with AI, having reportedly closed a classified deal that allows the Pentagon to use its AI for “any lawful government purpose,” according to The Information.

The Information initially reported talks between the Alphabet-owned company and the US government around two weeks ago, following the messy breakdown of the relationship between Anthropic and the Trump administration — and the rushed OpenAI deal that took its place.

The move has reportedly sparked opposition among Google employees, with the Washington Post reporting that over 600 workers signed a letter to CEO Sundar Pichai to ask him to bar the Defense Department from using the company’s AI models for any classified work.

The Information initially reported talks between the Alphabet-owned company and the US government around two weeks ago, following the messy breakdown of the relationship between Anthropic and the Trump administration — and the rushed OpenAI deal that took its place.

The move has reportedly sparked opposition among Google employees, with the Washington Post reporting that over 600 workers signed a letter to CEO Sundar Pichai to ask him to bar the Defense Department from using the company’s AI models for any classified work.

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Microsoft loses exclusive access to OpenAI’s models and tools while ending revenue-sharing deal with ChatGPT maker

Microsoft shares dropped as it announced a revised agreement with OpenAI.

The amended agreement ends revenue-sharing payments from Microsoft to OpenAI, and also ends Microsoft’s exclusive access to OpenAI’s intellectual property (i.e. models and products).

OpenAI’s revenue sharing with Microsoft will end in 2030, is subject to a total cap, and is no longer dependent on its achieving artificial general intelligence.

Amazon, a likely beneficiary of this lack of exclusivity, initially popped on the news but erased those gains.

This is a developing story.

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Rani Molla

China just blew up one of Meta’s key AI bets

China has ordered Meta to unwind its $2 billion acquisition of Manus, a Chinese startup (since relocated to Singapore) that makes AI agents and was central to Meta’s push to turn its massive AI investments into a real business. The move is part of the Chinese government’s effort to stop US firms from gaining access to Chinese talent and intellectual property, as Washington continues to restrict sales of advanced AI chips to Chinese companies.

Unlike its tech peers, which can sell AI through cloud services, Meta mainly uses AI to improve its existing ad business rather than as a stand-alone revenue driver. The decision strips away one of Meta’s clearest paths to monetizing AI — leaving it spending like a hyperscaler, without a hyperscaler business model.

Unlike its tech peers, which can sell AI through cloud services, Meta mainly uses AI to improve its existing ad business rather than as a stand-alone revenue driver. The decision strips away one of Meta’s clearest paths to monetizing AI — leaving it spending like a hyperscaler, without a hyperscaler business model.

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