Meta Platforms has formally declined to sign the European Union’s newly unveiled Code of Practice for General-Purpose Artificial Intelligence, escalating tensions between Big Tech and European regulators just weeks before key provisions of the EU’s landmark AI Act are set to take effect.

In a detailed statement shared on LinkedIn, Meta’s Chief Global Affairs Officer Joel Kaplan criticized the voluntary framework, warning it could “stunt innovation” and introduce legal uncertainty for AI developers across the bloc. Kaplan said the EU was “heading down the wrong path on AI,” describing the Code as regulatory overreach that “goes far beyond the scope” of the AI Act itself.

Although the Code of Practice is non-binding, companies that voluntarily sign on are granted practical benefits, such as a simplified compliance pathway, lighter regulatory obligations, and legal clarity when the AI Act becomes fully enforceable starting August 2025. Non-signatories like Meta will have to navigate the full weight of the AI Act’s compliance requirements without the benefit of these easing measures.

Meta’s refusal to sign is the latest in a growing wave of resistance from both global tech giants and European firms. A coalition of 44 European tech leaders, including Airbus, Siemens, Mistral, and ASML, had earlier called on the European Commission to delay the implementation of the AI Act’s Code of Practice by two years, citing fears that the framework is moving too quickly and could endanger Europe’s global competitiveness in the AI arms race.

In their open letter, the companies warned that the current scope of the Code places an “undue burden” on developers of general-purpose AI models and risks “jeopardizing the entire European AI ecosystem.” They called for more time to test, refine, and adjust compliance mechanisms before they become operational.

Despite mounting opposition, the European Commission has refused to delay. The EU’s Internal Market Commissioner Thierry Breton has insisted that the framework will proceed as scheduled, emphasizing that the AI Act is essential for consumer safety and trust in emerging technologies. The first compliance obligations for general-purpose AI developers will commence on August 2, 2025, with full obligations for high-risk systems following a year later, in August 2026.

The Code of Practice itself outlines voluntary standards in several key areas:

• Companies are expected to document the data used to train AI models, disclose technical capabilities, and share summaries that explain how models behave.
• The code also imposes copyright compliance safeguards, transparent risk mitigation procedures, and governance frameworks to manage systemic AI threats.
• Signatories will also have to demonstrate how they address safety concerns and avoid discriminatory outputs.

The EU says the Code is not just about enforcement—it’s meant to provide legal certainty, especially for general-purpose models that fall into a gray area of the AI Act. However, critics like Meta argue that it essentially extends legal obligations under the guise of “voluntary” rules, setting a precedent for indirect enforcement.

“We are committed to building and deploying AI responsibly and have already published a number of transparency and safety resources for our generative AI models,” Meta said in a statement. “We’ll continue to engage with the Commission and look forward to supporting the goals of the AI Act in practice.”

As the deadline nears, other AI giants, including Google and OpenAI, are still reviewing their positions on whether to sign the Code. While Meta insists that it may still join later if its concerns are addressed, its current stance reflects a broader rift between regulators focused on precaution and tech companies emphasizing flexibility and speed in innovation.

Analysts say the rift could determine the pace and direction of AI development in Europe, where concerns about misuse, bias, and safety are being weighed against the continent’s lagging position in the AI race.

Ultimately, the EU appears determined to use its regulatory muscle to set global norms for artificial intelligence, regardless of whether Big Tech chooses to cooperate.

Netflix has revealed that it used generative artificial intelligence (GenAI) to power visual effects in El Eternauta, a highly anticipated Argentine sci-fi series, marking the first time the streaming giant has integrated AI-generated footage into the final cut of an original production.

The disclosure came during Netflix’s Q2 2025 earnings call, where co-CEO Ted Sarandos described the milestone as a sign of how GenAI can significantly enhance creative storytelling while reducing production costs and timelines. Sarandos said a key scene in El Eternauta—featuring a massive building collapse—was made possible through AI-developed effects in collaboration with Eyeline Studios, Netflix’s in-house virtual production team. He noted that the visual sequence would have been “too expensive and time-consuming to make” using traditional methods.

The scene was completed “ten times faster” and at a fraction of the usual cost, with Sarandos emphasizing that both the creators and audiences were thrilled with the results. “It was a perfect case where GenAI amplified the creative vision rather than replacing it,” he added.

El Eternauta, adapted from a revered Argentine comic book from the 1950s, follows a man trapped in a deadly snowstorm that blankets Buenos Aires, caused by an alien invasion. The show is being billed as Netflix’s biggest original production in Latin America to date.

The development signals a major leap in the application of AI in mainstream entertainment, particularly in visual effects-heavy genres where budget constraints have often limited artistic ambition. According to Sarandos, AI now allows creators with limited budgets to achieve blockbuster-quality scenes. He stressed, however, that the use of AI is intended to be additive, not a replacement for human talent.

Beyond production, Netflix is also ramping up GenAI deployment across other segments of its business. Co-CEO Greg Peters said AI is already being used to power interactive voice search, personalized recommendations, and increasingly sophisticated advertising models. A new interactive advertising feature is expected to roll out later in 2025, offering users more engaging and tailored ad experiences.

The company’s earnings report underscored Netflix’s momentum. It reported a 16% increase in revenue year-on-year to $11.08 billion for Q2 2025, with net income reaching $3.13 billion. Sarandos said these results were driven in part by continued growth in international markets and a surge in viewership for non-English titles, which accounted for about one-third of total hours watched last quarter.

However, the move to incorporate AI in content creation has raised concerns, particularly within Hollywood. The Writers Guild of America and SAG-AFTRA previously staged a months-long strike over studios’ potential use of AI to automate creative work. The unions demanded guarantees that human writers and actors would not be replaced or have their likenesses and work replicated without consent.

Sarandos addressed those fears directly during the earnings call. “We’ve been incredibly transparent with the creative community about how and why we use these tools. The goal is not to eliminate jobs but to enable more creative expression,” he said.

He cited AI’s role in processes such as pre-visualization, script drafts, character de-aging, and now visual effects.

Netflix’s experiment with GenAI in El Eternauta could set a precedent for how artificial intelligence is embraced by other major studios. If successful, it may pave the way for mid-tier productions to rival blockbuster spectacles in terms of visual storytelling, without requiring inflated budgets or extended production timelines.

With its growing use of AI, strong earnings, and expanding global content strategy, Netflix appears intent on leading a new era in entertainment—one where technology supports rather than supplants human creativity.

Private equity giant Blackstone has withdrawn from the consortium seeking to acquire TikTok’s U.S. operations, a move that casts fresh doubt on President Donald Trump’s repeated assurances that a deal is within reach.

A source familiar with the matter told Reuters on Friday that Blackstone’s exit comes amid prolonged delays and heightened uncertainty surrounding the transaction. The New York-based firm had planned to take a minority stake in TikTok’s U.S. business, as part of a Trump-endorsed consortium that includes Susquehanna International Group, General Atlantic, and other institutional investors. The group had emerged as the leading bidder for TikTok’s U.S. operations, with a proposed structure under which U.S. investors would own 80% of the business, while ByteDance, TikTok’s Chinese parent company, would retain a minority stake.

Despite Trump’s insistence that he has found “very wealthy buyers” for the embattled app and that negotiations are progressing, Blackstone’s withdrawal serves as a stark reminder that the deal remains mired in legal, political, and diplomatic limbo.

ByteDance is under pressure to divest TikTok’s American operations following the passage of a federal law in April 2024 mandating a sale or shutdown of the popular video platform in the U.S. by January 19, 2025. The law, signed by Trump, cited national security concerns over Chinese access to Americans’ data. Since then, Trump has signed three executive orders, most recently pushing the deadline to September 17, further frustrating lawmakers who view the repeated extensions as a violation of both the spirit and the letter of the law.

Trump, however, has framed the delay as a tactical necessity in ongoing trade negotiations with China. The President told reporters earlier that he would “personally speak to President Xi Jinping” about the TikTok situation, suggesting the deal has now become a bargaining chip in broader U.S.-China trade talks.

However, the obstacles are not limited to Washington. In Beijing, officials have signaled their disapproval of any forced divestiture, particularly one seen as caving to U.S. pressure. China previously amended its export regulations to require government approval for the transfer of certain technologies, including content recommendation algorithms—TikTok’s crown jewel—further complicating the prospect of a clean sale.

ByteDance has explored a variety of options to resolve the standoff, including spinning off TikTok’s U.S. operations into a new American-based entity. Talks around this idea gained traction earlier this spring but were suspended after Trump imposed steep new tariffs on Chinese imports, sparking another round of tensions that stalled any immediate path forward.

The investor group still includes heavyweights such as KKR, Andreessen Horowitz, and Oracle, which has long expressed interest in a stake. However, it is unclear whether these firms remain committed following Blackstone’s withdrawal. One source close to the matter said several investors are “reassessing their positions” amid growing uncertainty over the structure of the deal and whether China would approve it at all.

For TikTok, the stakes are enormous. The app remains wildly popular in the U.S., with over 150 million users, but its long-term future in the market now hinges on a political resolution. ByteDance, which generated $43 billion in revenue in Q1 2025, recently surpassed Meta in quarterly earnings, according to Reuters. Yet the company may be forced to relinquish one of its most valuable global assets—or risk losing access to the U.S. market entirely.

In the meantime, TikTok is said to be developing a U.S.-specific version of the app, an effort to ringfence its American operations from Chinese oversight. However, with the deal’s structure still in flux and Blackstone’s exit raising questions about investor confidence, the app’s future remains anything but certain.

While Trump has continued to maintain that a sale will happen, Blackstone’s withdrawal reinforces what many observers already suspect: the TikTok deal is stalled, and its fate is now tangled in a web of politics, trade warfare, and deepening investor doubt.