Latest news with #TuSimple
Yahoo
29-05-2025
- Business
- Yahoo
Hawley urges DOJ probe of Chinese trucking company
FIRST ON FOX – Sen. Josh Hawley, R-Mo., asked the Justice Department on Thursday to investigate a Chinese-owned self-driving trucking company, one of the largest in the U.S., citing allegations that it had shared proprietary data and other sensitive technology with state-linked entities in Beijing. The letter, sent to U.S. Attorney General Pam Bondi and previewed exclusively to Fox News Digital, asks the Justice Department to open a formal investigation into the autonomous truck company TuSimple Holdings, a Chinese-owned company and one of the largest self-driving truck companies in the U.S. In it, Hawley cites recent reporting from the Wall Street Journal that alleges that TuSimple "systematically shared proprietary data, source code, and autonomous driving technologies" with Chinese state-linked entities— what he described as "blatant disregard" of the 2022 national security agreement with the Committee on Foreign Investment in the United States, or CFIUS. "These reports also revealed communications from TuSimple personnel inside China requesting the shipment of sensitive Nvidia AI chips and detailed records showing 'deep and longstanding ties' with Chinese military-affiliated manufacturers," Hawley said. Trump Nominates Former Defense Attorney Emil Bove For Federal Appeals Court Vacancy He noted that to date, TuSimple "has not faced serious consequences" for sharing American intellectual property with China, despite having continued to share data with China after signing a national security agreement with the U.S. government in 2022, which was enforced by the Committee on Foreign Investment in the U.S. Read On The Fox News App "If the reports about TuSimple are accurate, they represent not just a violation of export law, but a breach of national trust and a direct threat to American technological leadership," Hawley said. Trump Admin Working To Fly Back Guatemalan Migrant Erroneously Deported From Us "The American people deserve to know how and why a supposedly U.S.-based company was allowed to serve as a conduit for the transfer of sensitive innovations to the Chinese Communist Party," he added. The letter asks Bondi and the Justice Department to take certain steps to investigate the company's actions, as alleged by the recent reports – including investigating whether TuSimple provided protected information to any Chinese-based entities, and what activities were covered by the company's national security agreement with CFIUS, struck more than two years ago. Hawley also asked Bondi what actions, if any, DOJ has taken to date to ensure that Bot Auto—a new Texas-based self-driving vehicle company staffed by many former TuSimple employees, "is not engaging in similar behavior." According to the Wall Street Journal report, TuSimple's actions helped shape new Commerce Department regulations, which blocked the sale of internet-linked cars and different components with links to China. According to the report, a CFIUS investigation determined TuSimple's tech sharing did not violate the official national security agreement— but the company was fined for other infractions, and ultimately paid out a $6 million settlement. The letter comes as Hawley, who chairs the Senate Judiciary Committee's Subcommittee on Crime and Counterterrorism, has emerged as one of the Senate's more vocal critics of the Chinese Communist Party, especially as it relates to the conduct of certain U.S. companies, and the sharing of certain intellectual article source: Hawley urges DOJ probe of Chinese trucking company
Fox News
29-05-2025
- Business
- Fox News
Hawley urges DOJ probe of Chinese trucking company
FIRST ON FOX – Sen. Josh Hawley, R-Mo., asked the Justice Department Thursday to investigate a Chinese-owned self-driving trucking company, one of the largest in U.S., citing allegations that it had shared proprietary data and other sensitive technology with state-linked entities in Beijing. The letter, sent to U.S. Attorney General Pam Bondi and previewed exclusively to Fox News Digital, asks the Justice Department to open a formal investigation into the autonomous truck company TuSimple Holdings, a Chinese-owned company and one of the largest self-driving truck companies in the U.S. In it, Hawley cites recent reporting from the Wall Street Journal that alleges that TuSimple "systematically shared proprietary data, source code, and autonomous driving technologies" with Chinese state-linked entities— what he described as "blatant disregard" of the 2022 national security agreement with the Committee on Foreign Investment in the United States, or CFIUS. "These reports also revealed communications from TuSimple personnel inside China requesting the shipment of sensitive Nvidia AI chips and detailed records showing 'deep and longstanding ties' with Chinese military-affiliated manufacturers," Hawley said. He noted that to date, TuSimple "has not faced serious consequences" for sharing American intellectual property with China, despite having continued to share data with China after signing a national security agreement with the U.S. government in 2022, which was enforced by the Committee on Foreign Investment in the U.S. "If the reports about TuSimple are accurate, they represent not just a violation of export law, but a breach of national trust and a direct threat to American technological leadership," Hawley said. "The American people deserve to know how and why a supposedly U.S.-based company was allowed to serve as a conduit for the transfer of sensitive innovations to the Chinese Communist Party," he added. The letter asks Bondi and the Justice Department to take certain steps to investigate the company's actions, as alleged by the recent reports – including investigating whether TuSimple provided protected information to any Chinese-based entities, and what activities were covered by the company's national security agreement with CFIUS, struck more than two years ago. Hawley also asked Bondi what actions, if any, DOJ has taken to date to ensure that Bot Auto—a new Texas-based self-driving vehicle company staffed by many former TuSimple employees, "is not engaging in similar behavior." According to the Wall Street Journal report, TuSimple's actions helped shape new Commerce Department regulations, which blocked the sale of internet-linked cars and different components with links to China. According to the report, a CFIUS investigation determined TuSimple's tech sharing did not violate the official national security agreement— but the company was finned for other infractions, and ultimately paid out a $6 million settlement. The letter comes as Hawley, who chairs the Senate Judiciary Committee's Subcommittee on Crime and Counterterrorism, has emerged as one of the Senate's more vocal critics of the Chinese Communist Party, especially as it relates to the conduct of certain U.S. companies, and the sharing of certain intellectual property.
Yahoo
29-05-2025
- Business
- Yahoo
TuSimple Reportedly Shared Self-Driving Data With China
TuSimple—now known as CreateAI—shared sensitive data with a Beijing-owned company after it signed an agreement with the U.S. government promising to stop sharing such data with firms in China, the Wall Street Journal reported Tuesday. In February 2022, TuSimple signed the agreement, targeted at protecting national security. It had six months to begin complying with the order, which stipulated the company would disentangle its business and its burgeoning technology from The Committee on Foreign Investment (CFIUS) was responsible for ensuring TuSimple's compliance with the agreement. More from Sourcing Journal US-Based Chinese Logistics Firms Caught Using Counterfeit USPS Labels FedEx Freight Taps New CEO, Chairman Ahead of 2026 Spinoff Yellow Nets $14M in Terminal Sales, Sets Up Saia to Further Expand US Footprint WSJ reported TuSimple sent data to Chinese autonomous vehicles a week after the agreement was signed by both entities. According to WSJ, the interagency body found that TuSimple's data sharing didn't violate that agreement; nonetheless, it did find other contraventions, which saw TuSimple paying a $6 million settlement fee, albeit without accepting fault for the issues CFIUS reportedly found. The Journal further noted that TuSimple in 2021—prior to the CFIUS agreement—brokered a deal between Chinese companies Foton and Hydron that would see the two developing autonomous trucks together, while Hydron shared an office with TuSimple. The publication further noted that TuSimple subsequently shared documents detailing how to build the autonomous vehicles it had built in the U.S.—including information about brakes, chips, steering, servers and powering the vehicle and noted that the sharing continued after the CFIUS agreement had been signed, until the compliance period officially began. WSJ reported that one of TuSimple's founders denied having sent any such information to Hydron and denied any involvement with Foton, despite the Journal having seen evidence to the contrary. TuSimple's tango with CFIUS was far from its only regulatory ruckus during this time; the U.S. Securities and Exchange Commission (SEC) also investigated TuSimple in 2022, with a special interest in the relationship between the company and Hydron. Public documentation shows that TuSimple indicated it had come to a settlement agreement with the SEC that just needed to be finalized, but the CFIUS investigation—and another investigation brought against TuSimple by the Commerce Department because of its purported relationship with technology giant Nvidia. But TuSimple, in the form that it was then, is long gone. In January 2024, the company announced that it would delist from the Nasdaq, citing cost-value imbalances. That move came after layoffs and issues with venture capital funding, which later saw TuSimple auctioning off 10 of its autonomous big rigs. In its place is CreateAI, which leverages generative AI to create video content. That venture, stood up in December 2024, comes after TuSimple vacated the U.S. market; the company told TechCrunch that despite its efforts to operate an autonomous vehicle business in China, its agreement with CFIUS made such an attempt extremely difficult. CreateAI is funded by some of the money left in TuSimple's wake But CreateAI isn't the only venture that TuSimple alumni are involved with; according to WSJ, Xiaodi Hou, one of the company's founders, has started a new company based out of Texas called Bot Auto. He has recruited ex-TuSimple employees. Sourcing Journal could not reach CreateAI, formerly TuSimple, for comment.
Yahoo
28-05-2025
- Automotive
- Yahoo
Why Pony AI Stock Is Falling Hard Today
Pony AI's shares are likely falling based on another autonomous-vehicle company's actions. Chinese electric-vehicle companies are slashing prices, which could be affecting Pony AI as well. There's a lot of uncertainty in the global automotive industry right now. 10 stocks we like better than Pony Ai › Shares of the Chinese autonomous-driving company Pony AI (NASDAQ: PONY) were falling this morning. The decline came after reports that TuSimple, a maker of self-driving trucks, sent sensitive autonomous-vehicle data to China even as it promised the U.S. government not to disclose information based on national security concerns, according to The Wall Street Journal. Pony AI isn't part of the controversy, but the U.S. and China aren't exactly on the best of terms right now amid tariff concerns and geopolitical positioning. The reports about TuSimple are likely worrying some investors that the U.S. could take a more restrictive approach on how autonomous-vehicle data is collected by Chinese companies. Pony AI's stock was down by 13.8% as of 11:16 a.m. ET Wednesday. The U.S. is increasingly focused on protecting data and technology created here from being exported to Chinese companies and the Chinese government. That's led to restrictions on what types of semiconductors can be sold to China and protections against American social media data being exported to China. That's why the Journal's report that TuSimple shared self-driving trade secrets with China could be affecting Pony AI's stock today. Pony AI has permits to operate its autonomous vehicles in several states, and investors may be worried that TuSimple's supposed actions may reflect poorly on the company and potentially lead to increased government scrutiny. Another factor that could be affecting the company's stock price today is that Chinese electric-vehicle (EV) companies are slashing prices. For example, BYD is one of the leading EV companies in China, and it just cut its vehicle prices by up to 34% for some models. Pony AI works with several Chinese EV companies, and investors may be concerned that a slowdown in the EV industry there could hurt its business. With Chinese EVs facing headwinds, tariff uncertainty between the U.S. and China, and now concerns over autonomous-vehicle data, there are plenty of variables that could cause Pony AI's stock to remain volatile right now. That doesn't mean it isn't a good long-term buy, but investors should be aware that the global automotive industry is facing significant pressures right now, and that's spilling over to companies connected to the industry, including those in self-driving tech. Before you buy stock in Pony Ai, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pony Ai wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy. Why Pony AI Stock Is Falling Hard Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
28-05-2025
- Business
- Wall Street Journal
How Self-Driving Truck Startup TuSimple Siphoned Trade Secrets to China - Tech News Briefing
TuSimple shared with Beijing data on its best-in-class autonomous driving system. WSJ reporter Heather Somerville explains how it became an example of Washington's shortcomings in keeping critical technology in the U.S. Plus: Rental-data company RealPage is clashing with state and local governments over its algorithmic pricing systems for apartments. WSJ reporter Rebecca Picciotto tells us why the GOP tax bill could provide relief for the company. Full Transcript This transcript was prepared by a transcription service. This version may not be in its final form and may be updated. Victoria Craig: Hey, TNB listeners, before we get started, heads up. We're going to be asking you a question at the top of each show for the next few weeks. Our goal here at Tech News Briefing is to keep you updated with the latest headlines and trends on all things tech. Now we want to know more about you, what you like about the show, and what more you'd like to hear from us. So, our question this week is, how often do you want new episodes, and how long do you want them to be? Do you want shorter shows more often or longer shows less frequently? If you're listening on Spotify, look for our poll under the episode description, or you can send us an email to tnb@ Now on to the show. Welcome to Tech News Briefing. It's Wednesday, May 28th. I'm Victoria Craig for The Wall Street Journal. Finding an affordable apartment in a big city can be like spotting a needle in a haystack. But what happens when you add in artificial intelligence, algorithmic pricing systems, even legal battles? Then, one of America's biggest self-driving truck startups shared sensitive data with China. We'll tell you how that's shaping the Trump administration's foreign investment rules. But first, using AI to crunch confidential data to set apartment rental prices has become a controversial topic in cities from Philadelphia to San Francisco. It's even led to dozens of lawsuits. But the tax bill that cleared the US House last week could throw companies like RealPage a lifeline, as WSJ reporter Rebecca Picciotto has been finding out. Rebecca, before we get into that, just help us understand how companies like RealPage work. Rebecca Picciotto: Yes. RealPage is a software firm that has a bunch of data about rentals all across the US and compiles that data into an automated algorithm to show landlords how certain rental prices affect rental demand and, in doing so, offers suggestions to landlords on how to set their prices. Victoria Craig: And the real issue with this is the AI part of this whole equation, right? Rebecca Picciotto: Yes. So, federal, state, and private plaintiffs have accused RealPage's algorithm of using proprietary data and crunching all of those numbers to help landlords basically collude on prices, see how their competitors are pricing, and then increase their rents. RealPage denies any allegations of antitrust or consumer protection violations. They say that their pricing recommendations are just that, suggestions. And so landlords don't have to take them. And in turn, that doesn't qualify as price fixing or collusion. Victoria Craig: The tax bill that was passed by the House could actually throw a lifeline to RealPage. How would that work? Rebecca Picciotto: Yeah. Tucked away in what Trump is calling his Big, Beautiful Bill is a provision that House Republicans added to essentially ban state and local officials from regulating AI models and automated algorithms for 10 years. So, that would essentially gut some of the local and state efforts to ban rent-setting algorithms like RealPage across the US. Victoria Craig: And the thing is, when you read your story, it's a little bit whiplash-inducing because there are all kinds of lawsuits that are already going on in local jurisdictions. This House bill could help RealPage, but then also state and local governments have plans in the works to fight back against what that bill may do. So, how does all that work? What kind of efforts are these local jurisdictions preparing for? Rebecca Picciotto: The House provision specifically will make unenforceable the local ordinances banning RealPage. But the provision likely will not affect ongoing lawsuits based on antitrust and consumer protection violations that are against RealPage. So RealPage is facing up to $73 billion in monetary damages across those lawsuits, and that will still be fair game even if the provision is passed. That said, local and state officials' first line of defense would be to sue the federal government if this tax provision is passed. And another consequence might be that if officials can't regulate rent-setting algorithms like RealPage, they'll turn to other tenant protection laws like upping rent control and leaning harder into other means of tenant protection. Victoria Craig: And what does this mean for the future viability of RealPage's business and its ability to continue operating? Because you mentioned some of those lawsuits and the damages that it could cause for the company. Rebecca Picciotto: Yeah. They're facing monetary damages. The DOJ wants to specifically adjust how RealPage's algorithm functions. Some landlords are already trying to create their own internal data systems away from RealPage. I spoke to one landlord who said that everyone he knows is scared to use RealPage. So, it's already affecting the business. That said, RealPage could definitely breathe a sigh of relief if they're able to function in markets that they've been essentially banned from. Victoria Craig: That was Rebecca Picciotto, who covers the residential rental market and housing policy for The Journal. Coming up, a US-based company shared its best-in-class autonomous driving system with China and became an example of Washington's shortcomings in keeping hold of critical technologies. We'll delve into some exclusive WSJ reporting after the break. In 2021, the San Diego-based company TuSimple set a record when its truck traveled 80 miles in Arizona without a human driver. But within a couple of years, the company voluntarily shut down its US operations, auctioned off its trucks, and delisted from the Nasdaq. WSJ reporter Heather Somerville has obtained exclusive details that show TuSimple siphoned trade secrets to Chinese companies, becoming the poster child for Washington's shortcomings in trying to keep critical tech and know-how in America. Heather, you spoke to former employees, and you've reviewed hundreds of pages of documents about how that transfer happened. Just walk us through the scale of what you found. Heather Somerville: TuSimple shared with Chinese companies what amounted to a full autonomous driving stack. This included the source code that would be effectively the brains of an autonomous truck, as well as numerous aspects of the design, the hardware, the integration of all of these systems. It's pretty difficult to just sort of slap an autonomous driving system onto a truck and make it work. All of these parts have to work together. You need a truck that is designed to accept a self-driving system. And so, in this data that TuSimple transferred included all of these components for this Chinese trucking company called FOTON to build a self-driving truck using TuSimple's autonomous system, which was developed by engineers in the United States. Victoria Craig: Now, TuSimple did sign a national security agreement with the US government at one point. What did that mean for its ability to share information with Chinese companies? Heather Somerville: That agreement, which was signed in February 2022, required that TuSimple separate its business and all its technology from China-based employees and China partners with a variety of firewalls and governance controls. It was also required not to share any intellectual property, such as source code. This was enforced by the Committee on Foreign Investment in the United States, or CFIUS, which is an interagency national security panel. But it was just about a week after signing that agreement that TuSimple transferred a trove of data to a Beijing-owned firm. And what we reviewed in documents is that the sharing of technology continued between when TuSimple signed the national security agreement and its deadline to comply with that agreement six months later. Victoria Craig: And what's been the response from TuSimple to your reporting? Heather Somerville: TuSimple co-founder Xiaodi Hou, who left TuSimple in 2023, told us that no information prohibited by the company's national security agreement was ever shared with anyone. A CFIUS investigation ultimately determined that TuSimple's technology sharing hadn't violated the national security agreement, but it did fine the company for other infractions. That's according to a person familiar with the events. TuSimple ended up paying $6 million in a settlement to CFIUS without admitting fault. Victoria Craig: And you point out in your story that company leadership was referred to the Justice Department for possible theft of trade secrets and espionage charges. The FBI, the SEC, the Commerce Department also all opened their own investigations. What came of all of these probes into the company and its dealings? Heather Somerville: Not very much. Many of the sources I spoke to, who are aware of what TuSimple did and have worked deeply on national security issues, are both flummoxed and really mad that things have played out this way. And ultimately, what we know so far is that the company paid $6 million to CFIUS for certain infractions. We don't know the precise status of other investigations, but when it effectively dissolved, its leadership moved on to do other things. One of the co-founders has another self-driving trucking company operating in Texas with Chinese investment. And other leaders have moved over to China where they're building an AI for animation company. Victoria Craig: Heather, the US considers autonomous vehicle technology as a matter of national security importance. And this whole story has really frustrated current and former government officials, as you point out in your story, because it's shown the weakness of US laws that are in place. So, what has the US government done to try to close some of those loopholes, can we call them, or problems in the laws? Heather Somerville: It is top of mind for a lot of people in the Trump administration. Technology is integral to US national security because it's important to our competition with China, it's important to our economic security. And we have this realm of export controls which tell companies they can't share or sell their technology to places like China. And we have this huge array of other technology that isn't really covered by laws or regulation, we know it's important. Autonomous driving is one of these technologies. And a couple of things that are happening right now is there is an office inside of the Commerce Department that was set up actually under the first Trump administration that has taken a much more aggressive approach to outright prohibiting Chinese technology from certain companies or certain types of technology that comes from China from being sold in the United States. Victoria Craig: That was WSJ reporter Heather Somerville. And that's it for Tech News Briefing. Today's show was produced by Julie Chang with deputy editor Chris Zinsli. I'm Victoria Craig for The Wall Street Journal. We'll be back this afternoon with TNB Tech Minute. Thanks for listening.
