Key Takeaways
- Meta is reducing third-party fact-checking and replacing it with a flexible community notes system for users.
- Despite legal delays, TikTok’s future is uncertain after a suspension and absence from app stores.
- Nvidia’s stock dropped over 3% due to concerns about China’s DeepSeek AI model.
As the tech sector shifts, major companies are adapting to new challenges. Meta is reducing third-party fact-checking and introducing a flexible community-driven approach, while also responding to criticism over its ad-free service.
Meanwhile, TikTok faces uncertainty, with competitors, like Meta, offering new features and incentives to attract creators.
Nvidia is also facing challenges, as China’s DeepSeek AI model threatens future demand for its GPUs, though analysts remain bullish on the company’s prospects.
Meta’s New Moderation Policy
Meta CEO Mark Zuckerberg has announced a reduction in third-party fact-checking across its platforms, citing a changing political and social landscape.
Instead, Meta will introduce a more flexible community notes system, similar to Elon Musk’s X, to allow users to flag misleading content. This follows complaints from a European consumer group alleging Meta’s paid ad-free service misleads users and violates EU laws.
In a move towards “free expression,” Meta would remove censorship on controversial topics, like immigration and gender. The company will also phase out complex content moderation systems, which Zuckerberg admitted made frequent errors, and provide more transparency about mistakes.
This change is partly influenced by criticism from political figures, including Donald Trump, and ongoing government pressure on free speech. Meta aims to empower its community to address misinformation and reduce censorship.
Meta stock ended the week up by 5.9%, but is currently decreasing by 2.3% on Monday’s pre-market trading .
TikTok Saga
Despite Donald Trump delaying a law banning the app, TikTok’s future is uncertain after a temporary suspension and continued absence from app stores.
Rival platforms are seizing the opportunity to attract TikTok users with new video features and incentives.
Meta, aiming to entice TikTok creators, introduced a bonus program offering up to $5,000 for new users who post 30 Reels in their first month. To enhance its appeal, Meta also plans to release “Edits,” an editing app similar to TikTok’s CapCut.
Other platforms, including X and BlueSky, also launch TikTok-style video feeds. This will further intensify competition for creators and reshape the short video landscape.
Nvidia Loses Momentum
Nvidia shares dropped by over 3% on Friday, sparked by concerns that DeepSeek AI model, using cheaper chips, could slow Nvidia’s revenue growth. Despite the drop, NVDA stock ended the week up by around 4%.
DeepSeek’s affordable AI model, DeepSeek R1, competes with OpenAI’s models and uses Nvidia’s H800 GPUs at a significantly lower cost. This raises concerns that AI developers may shift to cheaper, smaller training methods, reducing Nvidia’s GPU demand.
Despite this, major U.S. tech companies, like Microsoft, Meta and Alphabet, continue to invest heavily in AI, with Microsoft planning to invest $80 billion in AI infrastructure by 2025.
Nvidia remains a strong buy, with a 24% upside potential, according to analysts . However, its stock dropped by 11% in Monday’s pre-market session.
DeepSeek’s Cost-effective AI Model Casts Doubts on High Valuations of Companies Like Nvidia
Meta Follows X’s Content Moderation Strategy — May Violate EU Privacy Regulations
Donald Trump’s Plan for TikTok Sets up Ideological Battle Over Social Media Control
