This week, we’re diving into the biggest stories shaping technology policy. From Elon Musk’s legal battle with OpenAI to Google’s high-stakes appeal over its app store, the tech giants are in the spotlight—and the stakes are high. Meanwhile, in Washington, lawmakers are grappling with AI transparency in financial services and navigating the complexities of autonomous vehicles and national security.

In this week’s Nimitz Tech:

• National Security: Are Chinese-made lidar sensors a hidden threat to U.S. military security?

• Antitrust: Elon Musk challenges OpenAI’s future—are antitrust concerns at the core of his lawsuit?

• Transparency: Can AI in financial services become more transparent? Rep. Maxine Waters wants answers.

WHO’S HAVING EVENTS THIS WEEK?

Wednesday, December 4th

• 💳️ HOUSE HEARING: “Innovation Revolution: How Technology is Shaping the Future of Finance,” House Financial Services Committee. Hearing scheduled for 10:00 AM in 2128 Rayburn HOB. Watch here.

Thursday, December 5th

• 🖥️ HOUSE HEARING: “Design vs. Default: Analyzing Shifts in Cybersecurity” House Committee on Homeland Security, Subcommittee on Cybersecurity and Infrastructure Protection. Hearing scheduled for 10:00 AM in 310 Canon HOB. Watch here.

TECH NEWS DRIVING THE WEEK

In Washington

• The second Trump administration is poised to significantly alter the U.S. approach to artificial intelligence (AI) policy, leveraging Republican control of the White House and Senate to advance its agenda. Key changes are expected to include relaxed agency regulations, such as repealing President Biden's AI Executive Order, and a more hands-off approach to AI oversight. The administration is also likely to expand AI export controls to counter China while focusing on military and intelligence applications of AI. Federal antitrust enforcement for AI companies is expected to decrease, allowing more mergers and acquisitions, while federal support for autonomous vehicles may increase. Additionally, efforts to streamline the U.S. AI regulatory landscape could lead to federal preemption of certain state-level AI laws, aiming to boost American competitiveness in the global AI ecosystem.

• Rep. Maxine Waters (D-Calif.), the top Democrat on the House Financial Services Committee, has introduced a bill to enhance transparency around the use of AI in financial services. The legislation mandates an interagency study by regulators, including the Federal Reserve and SEC, to examine AI products, their data origins, and impacts on financial firms. The study would inform recommendations for new AI standards and labeling practices, such as disclosing the balance of synthetic versus real data in AI training. Waters’ proposal reflects concerns about biased AI data leading to discriminatory lending practices, but it lacks bipartisan support and is unlikely to pass during the lame-duck session. A broader discussion on AI in banking is set for a "Future of Finance" hearing on Dec. 4, signaling that more legislation may follow.

National

• Google has appealed to the 9th U.S. Circuit Court of Appeals to overturn a jury verdict and a court order requiring significant changes to its Play Store and Android operating system. The case stems from a 2020 lawsuit by Epic Games, which accused Google of monopolizing app distribution and in-app payments on Android devices. A jury sided with Epic, leading U.S. District Judge James Donato to order reforms, including enabling rival app stores within Play. Google argues that the trial judge made legal errors, allowed improper evidence, and issued an overly broad injunction impacting all developers and users, not just Epic. Epic, however, maintains that the jury’s decision was sound and that Google's appeal is baseless. Oral arguments are scheduled for February 2025, with a ruling expected later in the year.

• Elon Musk has filed a motion for a preliminary injunction in his lawsuit against OpenAI, seeking to block its transition to a for-profit model and halt alleged antitrust violations. Musk’s attorneys argue that CEO Sam Altman’s actions jeopardize OpenAI’s ability to pay damages if the case is decided in Musk’s favor. They also accuse OpenAI and Microsoft of discouraging investors from funding competitors, in violation of the Sherman Act, and claim Microsoft improperly leveraged board access to gain competitively sensitive information, violating the Clayton Act. OpenAI denies the allegations, calling Musk’s claims meritless and repetitive. The case unfolds amid reports of OpenAI's structural shift and potential regulatory discussions.

International

• A new report from the Foundation for Defense of Democracies warns that Chinese-made lidar sensors pose significant risks to U.S. military security, calling for a ban on their use in American defense equipment. Lidar technology, essential for creating 3D maps in applications ranging from autonomous vehicles to port automation, relies on advanced processors that could conceal malicious code or firmware backdoors exploitable by the Chinese government under its security laws. The report also highlights vulnerabilities, such as satellite-based laser systems potentially disabling these sensors on a broad scale. The think tank urges U.S. lawmakers to prohibit Chinese lidar in defense and critical infrastructure and to collaborate with allies like Germany, Canada, and Japan to establish alternative supply chains. While prominent lidar suppliers exist in the U.S. and Europe, China's significant presence in the industry, including firms like Hesai Group, adds urgency to addressing these security concerns.

FOR FUN

• 👠 DAR Museum: Iconic Christmas Fashion | 6-9 p.m. | $29 | Foggy Bottom

ADD TO THE NIMITZ NETWORK

Know someone else who would enjoy our updates? Feel free to forward them this email and have them subscribe here.

Additionally, if you are interested in our original publication on veterans affairs policy, check it out below: