Tech Wars 2024: Sanctions, lawsuits, and the battle for AI supremacy

The tech industry turned into a battlefield this year as countries, businesses, and innovators fought over intellectual property, semiconductors, and artificial intelligence. In the drive for technological supremacy, Qualcomm and Arm engaged in a high-stakes legal battle, and the U.S. tightened its hold on China’s chip ambitions.

India, meanwhile, launched a ground-breaking legal battle against OpenAI, pushing the limits of copyright and artificial intelligence. By altering global power relations in the digital age, these tech conflicts are doing more than just reshaping industries.

U.S. hits China with tech Sanctions, Beijing strikes back

The United States of America intensified its clampdown on China’s semiconductor ambitions, targeting 140 companies, including major players like Naura Technology Group. Announced ahead of President-elect Donald Trump’s inauguration, the measures aim to block China’s access to advanced chipmaking tools, memory chips, and AI-enabling technology.

Commerce Secretary Gina Raimondo emphasised that these restrictions are intended to stop China from using semiconductors to modernise its military. Chinese firms such as Huawei-linked Swaysure Technology and Shenzhen Pensun Technology have been blacklisted, cutting them off from U.S. supplies without special licences.

China condemned the move as “economic coercion” and is fighting back. Leveraging its influence over Japan and South Korea’s tech industries, Beijing is retaliating by imposing stricter export controls on key minerals like gallium, germanium, and graphite—critical for semiconductors and batteries.

While Beijing’s bans risk damaging its economy, its grip on Asian supply chains strengthens its position in the escalating tech war. This ongoing battle reflects mounting tensions over global trade and national security.

Qualcomm and Arm’s legal clash over the future of AI

The legal battle between Qualcomm and Arm over licensing rights and chip design could significantly impact the semiconductor sector and artificial intelligence. Qualcomm purchased Nuvia, a semiconductor design business, in 2021, which is the basis for its flagship Snapdragon chips. Arm claims that Qualcomm failed to secure new licenses to use Nuvia’s Arm-based technology after the acquisition, and that Arm is using this action to compel greater royalties and interfere with its product strategy. Arm is not seeking financial damages but requests that any Qualcomm devices infringing upon its intellectual property be destroyed by the court. A decision in Arm’s favor could force Qualcomm to change its strategy and challenge its position as the industry leader in next-generation chip design.

India’s battle over AI and Copyright

Indian news agency ANI has filed a lawsuit against OpenAI, accusing the company of using copyrighted news content without permission. The lawsuit, the first of its kind in India, could have significant implications for AI and intellectual property rights. ANI argues that it is against intellectual property rights to use its content without permission and raises concerns about disinformation. OpenAI, on the other hand, claims that it uses publicly accessible data and that facts are not covered by copyright. The Delhi High Court plans to designate an impartial specialist to evaluate the copyright implications.