China Scrutinizes Meta's US$2 Billion Manus AI Acquisition, Signaling Shift in Tech Regulation

• A New Mexico jury found Meta liable for US$375 million in damages for failing to protect young people from online harm, including exploitation by sexual predators, in violation of state consumer protection laws. • This verdict follows a separate Los Angeles jury decision ordering Meta and Google to pay US$6 million to a 20-year-old woman over claims that their apps were addictive and caused mental health crises. • Multiple states have filed similar cases against Meta, signaling a broader accountability movement targeting major tech platforms' user engagement and safety practices.

• The US-China technology rivalry is increasingly centered on quantum computing, with both nations treating the field as a strategic asset with profound economic and national security implications alongside AI and semiconductors. • China has deployed an estimated US$16 billion in public funding—roughly four times current US government investment—embedding quantum computing into its Five-Year Plan as one of seven frontier technologies through a highly centralized, state-led approach. • The US ecosystem remains decentralized, driven by over 40 companies, national laboratories, universities, and hyperscalers, with government support focused on funding, benchmarking, and validation rather than selecting national champions.

• The Artemis II crew held a virtual media briefing from their quarantine facilities at Kennedy Space Center on March 29, 2026, providing updates on mission preparations and crew status. • The media event represents a standard pre-launch protocol for NASA's crewed lunar missions, allowing the public and press to interact with astronauts before their departure. • This briefing marks a key milestone in the Artemis II mission timeline, bringing the crew closer to their scheduled launch date.

• Tech companies including Palantir, Anthropic, and Anduril are increasingly partnering with the US Department of Defense, marking a significant shift from decades of strained relations between the tech sector and military. • Anduril announced a 10-year, US$20 billion contract with the US military, while Palantir's Maven data analytics platform and Anthropic's AI have been used extensively in operations against Iran, including defense against Shahed drones. • The collaboration represents what investors view as a lucrative opportunity, with traditional military contractors like Lockheed Martin and Boeing now joined by rising tech giants in supplying cloud computing, AI-powered drones, and advanced defense systems.

• The United States is broadening national security restrictions beyond telecommunications infrastructure to encompass consumer technology products such as routers and drones. • This expansion reflects growing concerns about foreign influence and vulnerabilities in consumer-grade technology that could pose risks to national security infrastructure. • The move represents an escalation in regulatory oversight of the tech sector as the government seeks to protect critical systems and supply chains from potential threats.

• Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) announced an 'agreement in principle' with the White House on stablecoin yield payments in crypto market structure legislation on March 28, 2026. • The non-public text addresses key issues for Senate Banking Committee markup in April, following talks with banking and crypto industry stakeholders. • Coinbase expressed opposition to the proposed language, potentially impacting final negotiations.

• President Trump called on a gridlocked Congress to establish a unified national AI regulatory framework to prevent a patchwork of state laws on March 28, 2026. • States have enacted dozens of AI laws covering child safety, transparency requirements, and whistleblower protections due to federal inaction. • The White House framework emphasizes protecting children from AI harms and consumers from data center cost increases, prompting mixed reactions from lawmakers.

• White House technology advisor David Sacks has expanded his role to become co-chair of a newly formed presidential advisory council focused on guiding U.S. leadership in artificial intelligence. • The council aims to shape national AI policy and strategy amid intensifying global competition. • This development underscores the Biden administration's push to maintain U.S. dominance in AI innovation and deployment.

• The U.S. government has designated Anthropic's Claude AI model as a potential supply-chain risk amid evaluations for military applications. • This follows Department of Defense introductions of new guardrail policies for military AI use, with xAI’s Grok also entering classified systems. • The move highlights growing scrutiny on AI models' security and reliability for national defense.

• U.S. lawmakers and Silicon Valley leaders are converging on policies to counter China's rapid AI advances, viewing it as a strategic economic battle. • House Speaker Mike Johnson urged tech firms to keep chips, data centers, and AI systems domestic and away from geopolitical rivals. • Proposed GAIN AI Act would mandate prioritizing U.S. access to advanced AI chips and require export licenses to countries of concern.

• Major companies—Amazon, Google, Meta, Microsoft, Oracle, OpenAI, and xAI—signed a federal pledge to provide their own electricity for AI data centers, shielding U.S. consumers from grid overload. • The commitment responds to exploding energy needs from AI infrastructure, following Meta's Louisiana gas plant initiative and similar efforts nationwide. • Industry leaders aim to prevent rate hikes and blackouts while fueling the AI boom central to U.S. tech competitiveness.