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Redacted element of a transcript
US Court of Appeals for DC Circuit
Classified

Here’s the transcript of the secret briefing that kicked off the TikTok law

Matt Phillips
9/5/24 12:06PM

It’s hard for Americans — or American politicians — to agree on much of anything these days.

But, following a classified briefing on the potential national security threat posed by TikTok on March 7, the House Energy and Commerce Committee voted unanimously to advance an incredibly contentious legislation that posed a threat to TikTok, one of the most popular forms of communication in the country. (Even after TikTok sent a urgent sounding push alert to its users' phones, directing them to call Congress and generating a flood of calls to Representatives.)

It was a remarkably rapid, unified and some might say courageous decision in a legislative body not known for such things.

The unanimous committee vote gave a jolt of momentum to the bill which passed the next week in a landslide vote by the full house. The Senate passed it the next month and President Biden signed it soon afterward.

Remarkably, we now have a transcript of that classified March 7 meeting that supercharged the journey of that bill into law.

Read the transcript here.

TikTok and its parent are fighting the law in court. And as part of that civil litigation, the government filed yesterday, a heavily redacted transcript of the briefing which was delivered, in part, by a representative of the Office of the Director of National Intelligence — identified only as Jonathan — and David Newman, a national security official at the Department of Justice, as well as others.

As you might imagine, the government has taken pains to efface any blockbuster revelations that might have been included in the classified testimony. Several pages are nothing more than large black rectangles. Elsewhere, there are merely tantalizing hints of what was said.

But in its court filing introducing the transcript, the government stressed that even providing this level of disclosure of a classified briefing is highly unusual. They argued, essentially, that the government was bending over backward to provide some transparency because of the stakes of the case.

“The government is unaware of any past circumstance in which classified testimony by the intelligence community at a classified hearing before Congress has been shared with a court for consideration in connection with civil litigation,” wrote Justice Department attorneys.

The disclosures — or lack of disclosure, depending on your perspective — reflect the unusual nature of the limited access to classified information in this case. Those limits pertain not only to the public, but also to TikTok and its attorneys which are not allowed to see the classified material either.

Unlike in a criminal case, where a defendant has some rights to see the classified evidence being presented against them, TikTok’s efforts to fight the ban is a civil matter, where it has no rights to see such classified material, says Alan Rozenshtein, an associate professor of Law at the University of Minnesota Law School and a senior editor at Lawfare, the national security law publication.

“The court is being asked to uphold this law on the basis of evidence that it cannot disclose to the litigants or to the public,” he said.

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Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling nonprofit arm would hold an equity stake in the PBC valued at $100 billion, which would make it “one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission — and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling nonprofit arm would hold an equity stake in the PBC valued at $100 billion, which would make it “one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission — and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

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BofA doesn’t expect Tesla’s ride-share service to have an impact on Uber or Lyft this year

Analysts at Bank of America Global Research compared Tesla’s new Bay Area ride-sharing service with its rivals and found that, for now, its not much competition for Uber and Lyft. “Tesla scale in SF is still small, and we dont expect impact on Uber/Lyft financial performance in 25,” they wrote.

Tesla is operating an unknown number of cars with drivers using supervised full self-driving in the Bay Area, and roughly 30 autonomous robotaxis in Austin. The company has allowed the public to download its Robotaxi app and join a waitlist, but it hasn’t said how many people have been let in off that waitlist.

While the analysts found that Tesla ride-shares are cheaper than traditional ride-share services like Uber and Lyft, the wait times are a lot longer (nine-minute wait times on average, when cars were available at all) and the process has more friction. They also said the “nature of [a] Tesla FSD ‘driver’ is slightly more aggressive than a Waymo,” the Google-owned company that’s currently operating 800 vehicles in the Bay Area.

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Oracle’s massive sales backlog is thanks to a $300 billion deal with OpenAI, WSJ reports

OpenAI has signed a massive deal to purchase $300 billion worth of cloud computing capacity from Oracle, according to a report from The Wall Street Journal.

The report notes that the five-year deal would be one of the largest cloud computing contracts ever signed, requiring 4.5 gigawatts of capacity.

The news is prompting shares to pare some of their massive gains, presumably because of concerns about counterparty and concentration risk.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

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