The EU Regulates ChatGPT Like a Search Engine - DTNS 5343

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3:17this is the daily tech news for monday august 31st 2026 we've run plum out of august we tell you what you need to know give you important context and help each other understand today

3:29Robb Dunewood: the eu turns its regulatory sites on open ai reddit and roblox yeah that's good stuff for them Also, it's goodbye to Tim Cook. I'm Tom Merritt. And I'm up down the wood. Let's start with what you need to know with the big story.

3:46Hat tip to R.W. Nash for noting this one on our DTNS subreddit. The European Commission announced Monday that it has deemed ChatGPT, Reddit, and Roblox as very large online platforms in Europe and therefore subject to the Digital Services Act. ChatGPT actually not a very large online platform, but its designation is a very large search engine, a very large online search engine platform. So they're just falling under the search engine category. Whether it's a platform or a search engine, it counts as very large under the European Union's DSA if it has more than 45 million monthly users. This is pretty straightforward.

4:27There's not a whole lot to appeal here. They could if they wanted to. But ChatGPT has reported 159 million monthly active users in the EU, so well beyond the 45. Reddit has reported 57.2 million and Roblox has reported 48 million. These are all numbers that the companies have reported themselves. So if they were to appeal it, they'd have to be like, we were lying. We were mistaken. They're not going to do that. Under the DSA, every business that is in the social media or search engine space must have mechanisms to report illegal content, provide advertising transparency, and comply with special rules concerning minors.

5:03But very large online platforms must also file transparency reports, detail what they're doing to reduce risks on their platform, and pay an annual fee. Risks include the aforementioned illegal content, content, how to protect your minors, users, physical and mental well-being of your users, political things like human rights, election processes, public security. Researchers and regulators must also receive access to data, and the very large companies must submit to independent audits. For search engines, and in this case, that means ChadGPT, the reports must also detail how responses to queries are produced and how the company assesses any risk to those responses.

5:51ChadGPT, Reddit, and Roblox have four months to come into compliance. I think it's significant that Roblox has gotten big enough for this, especially with all the child protections that are in the DSA, Rob. Reddit will be an interesting one, but the most fascinating one to me is ChatGPT. How are they going to comply with these requirements that were meant for search engines? They're meant for Google and Bing and those kinds of things. And you got kind of a black box when you're talking about open AI.

6:20Robb Dunewood: Yeah, it is interesting from the LLM standpoint. But these tools work very much like a like a search engine. You can go ask ChatGPT questions just like you can ask Google questions and it will give you answers. Therefore, people are using it now. You may it may not technically be a search engine, but people are clearly searching it to get answers to the everyday questions that they would have asked Google or or, you know, or, you know, Bing or whatever the case is. So and you're also right, Tom, they're reporting their own numbers and their own numbers are saying that you have now reached this threshold.

6:59Robb Dunewood: So there's not a lot of wiggle room that they're going to have on that. However, we know that they are a company and they're going to try to fight it because it's more conducive for them to not be on this list than it is for them to be. So I would imagine they'll try to appeal something just, you know, just in case they get lucky. But I think that, you know, it's not just them. I think any of these LLMs that get this big, they are going to be looked at like a search engine, because if you remember back to when they were putting the rules in for the DSA, part of the part of the reason for this is that you're so big and you're so influential that you literally can shift how society operates based off of how you interact with it.

7:35Robb Dunewood: So I do believe that even though sometimes it can be maybe a little bit overhanded, that they're trying to say that if you get to this point, we've got to treat you different. Because if we don't, we've just been shown over and over again that you guys don't necessarily look out for society in the way that you should. OpenAI is not going to appeal its classification, but I think you're right. It's going to try to modify what it's supposed to do. And this will be interesting because Google also has AI generated results in its search engine. So Google has probably done some of this work that OpenAI can look to and OpenAI and Google may team up on like, well, when you're talking about a search index, we can show you the indexing algorithm, right?

8:18When you're talking about a large language model, you literally cannot show exactly how the large language model came up with something. What you can show is chain of thought, reasoning. If that is sufficient for third-party auditing and for the European Union's DSA regulators, then maybe that will be good enough. But it's quite a different way of reporting versus the way this rule was put into place. This rule was put into place to say, OK, you've got a search index, you've got a spider, you go out and you do things where we want to see how your algorithm takes those page ranks and turns them into search results to make sure that you're doing something that isn't putting your foot on the scales or, you know, in some way, biasing the populace or giving them misinformation or something like that.

9:06I think JATGPT is going to have a much easier time with the misinformation side of things because it's either hallucinating or it's not. And it's got a link to what it decided to do. And it can say, yes, in these cases, the link was wrong or in these cases, we didn't have a link. And those have been getting less and less over time. I think several independent studies have found you generally have less misinformation in an LLM's response than you have in your typical search engine where you've got a bunch of people gaming it with SEO.

9:38Robb Dunewood: I'm not quite sure how governments are supposed to create laws because essentially what has kind of happened here, they wrote a law for a tactic, a search engine. A search engine works in a very specific way. It can do these things. We now have LLMs that they can do some very, very search engine type things, but they're not search engines. The way that they're deriving two similar answers are a very, very different way. And the law doesn't necessarily allow for that. So I think that there will have to be a partnership between, you know, between the, you know, the government and between these large language model companies that ultimately will fall under this rule to here's how we're able to get to what you're ultimately getting to.

10:20Robb Dunewood: Because once again, if you write a law for a tactic, this is how it is done today. You know, 10 years from today, similar things are being done, but they're not being done at all the way that you wrote the law for. And that becomes problematic. Yeah, I think the DSA isn't too bad in that respect in that it is very results oriented. What are you doing to prevent misinformation? What are you doing to prevent manipulation of elections? And so then it's up to the company to say, this is what we're doing. But you're right. A lot of that was made with the envisioning of how these tools worked. And the answer to your question, Rob, is what you're supposed to do is make a new law.

10:59The problem is governments tend to move a lot slower than we would like in making new laws. So it's a lot easier to just take an existing law and say, well, what if we just kind of applied it? What if we tilted it a little angle and make it work on this? Yeah.

11:15Robb Dunewood: So I think ultimately they will figure this out. I'm not mad at the DSA. I think that some good has come out of it. I do also think that in some cases it has been a bit overbearing, but the truth is usually somewhere in the middle. So if the goal here is that open AI works with the government, the government works with open AI, I think they'll get to some type of resolution. Yeah. I'd like to see some studies of the effectiveness, what changes, what positive effects have the DSA and the DMA for that matter, which is kind of a similar law. And what have they had? If anyone knows of studies that have been done like that, I'd be curious to see them feedback at dailytechnewshow.com.

11:57Robb Dunewood: DTNES is made possible by you, the listener. Thanks to Paul Thiessen, Ali Sanjabi, AB Puppy, and Johannes.

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16:13Robb Dunewood: There is still more to talk about today. Let's get to the briefs. We have got lots of gaming news today related to how you get your games. Montauk noted the story that Sony is fighting a class action lawsuit in a court in San Francisco, where it must prove that reasonable consumers would not misunderstand licensing terms for digital games. Meanwhile, Eurogamer reports that Microsoft's forthcoming Project Helix console would support physical media as opposed to previous rumors that said it would be all digital. In an interview with BBC News at Gamescom in Cologne, Xbox CEO Asha Sharma declined to share anything new about Project Helix, but she did say, Look, we've been hard at work on a great next generation and a great family of devices for Helix, and we'll share more soon.

16:57Robb Dunewood: That made a lot of people speculate Xbox might continue to make versions that support disc. And that also led Eurogamer to report that Sony is considering pushing off its December 31st, 2028 deadline for making physical media versions of its games. Yeah. So obviously, Sony fighting that class action lawsuit is only tangentially related to this. It's trying to fight the fight that a lot of companies have fought to say, well, we have it in the terms of service, but the California law means that it has to be easy to understand. It's not going to change the fact that digital content is a license, not ownership, but it is bringing more attention to digital ownership, quote unquote, versus physical ownership, which by the way, you still also, you only own the disc.

17:45You actually still are only licensing the game that's on that disc. You could sell the disc though. So that's a tangible difference between that. And I think what we're seeing play out here is Asha Sharma very astutely noticing that people are mad at Sony for announcing it's going to stop making games two years from now and saying, well, shoot, maybe I should get out there and imply that we're not going to stop that. I'll leave my options open by making it pretty vague. But that's a great way to win the war of public opinion. And if you ever doubt that the war of public opinion has an effect, it's not a guarantee to change things, but it can.

18:28And we're kind of in slow motion watching that happen here. If you've got Sony going, well, maybe we should push off that date because we don't want to give Microsoft an opening here.

18:37Robb Dunewood: I'm not a betting man, but I am a guessing man. So if I had to guess, at some point, somewhere a discussion has been had inside of Microsoft, I was like, you know, you're going to get rid of disk at some point. But we haven't told Earth yet that we're going to do this. So let's just not say that yet. It would be, it would behoove us to just not say the things that we're thinking about doing years down the road, because maybe they weren't two years away. Maybe they were three years away. But you know what? There's no point in telling Earth and getting everybody upset about something that's like maybe almost at the end of this decade, if not the next one.

19:08Robb Dunewood: So yes, this absolutely benefits Microsoft to just, even if you were thinking about it, even if some leaks come out to where you were thinking about it, well, we never said it officially. Sony came out and said it officially. We're not trying to upset you. We're just thinking about it. We thought better of it. And we're not necessarily reversing course. We're just not ready to tell you that that's what we're going to do eventually. Yeah. And Sony is going to have to stop making physical games. And the sad fact is people aren't buying them in greater numbers. Every year they're buying them in smaller numbers.

19:40And what Sony did was, I think, logically projected out like, yeah, by the end of 2028, we'll have made enough that we can just have them in stock and that'll allow us to ride out the demand until it's gone. Microsoft knows that's true as well but like you said they're like well Sony went ahead and talked about it first so we don't gots tuned yeah yeah I remember this little company called Netflix that

20:04Robb Dunewood: they were you might have heard of them Tom but they used to just send you DVDs in the mail man it was like it was like the coolest thing ever yeah and no point ever were they ever thinking about getting rid of DVDs until of course they decided to you know what I'm gonna spend this DVD business into another business called Flixster run it for a year or two and then we'll kill it But there was a time when you would have never thought that that's what they were going to do, even though they were having those conversations for five or six years before they actually moved on. I would imagine that Microsoft's doing the same thing.

20:33Yeah. And it's a matter of, you know, whether Sony needed to make it public. I think Sony was just trying to be honest, honestly, like, yeah, we're going to stop. And there is there is a it is not a popular public opinion to not like physical games. and Asha Sharman knows that. So very, very wise on her part. NASA launched the Nancy Grace Roman Space Telescope on Sunday on a mission to enter orbit four times farther from Earth than the moon so it can deliver a view 100 times wider than the Hubble Space Telescope. A SpaceX Falcon Heavy rocket lifted off at 7.25 a.m. Eastern time and sent Roman on a trajectory to reach the L2 Lagrange point in three months.

21:16The telescope is named after Nancy Grace Roman, NASA's first chief astronomer. Sometimes you may hear Nancy Grace Roman referred to as the mother of Hubble for her essential work on what led to the Hubble Space Telescope. It should deliver its first images by the end of the year. The telescope, the Roman telescope, is a 7.9 foot diameter, 2.4 meter device donated by the National Reconnaissance Office. So it was meant to be a spy telescope. So they just took it, built an observatory around it. It wasn't like plug and play or anything, but it sped things up. And one of the missions for this telescope will be to look for evidence of dark energy, which would help improve or possibly disprove and adjust the standard model of physics.

22:04That could be incredibly helpful for physics and for our understanding of how everything in the world works. It will also be able to image exoplanets, planets around other stars. These images are high resolution. They say you would need half a million 4K TVs to display an image. It will send down 1.4 terabytes of data each day for a total of 20 petabytes over the course of its five-year mission. NASA created a platform called Roman Research Nexus to host the data on Amazon Web Services. Roman Telescope was supposed to launch in May next year. So it beat its deadline by nine months, as well as staying within budget.

22:48Just lots to love about the Roman Space Telescope.

22:50Robb Dunewood: Tom, you know, we tend to be able to look up at the moon almost every day or every night and see it. And we don't think of it as being as far away from us as it is, but it's pretty darn far away. It's not close. It's not like it's not like just you walk a half a mile and then you're to the moon. This telescope is four times further out from Earth than the moon. So to even think of that as orbit just feels kind of kind of odd because it is so far out. Technically, it is it is, you know, it is it is orbiting, but it's a long way out there. So it'll be really interesting to see the type of images that can come from this because they've gotten it far enough away that you can actually look at some stuff that you just we physically weren't able to see because of the proximity to.

23:31Robb Dunewood: you know, you know, to earth before. Yeah. And I don't think we understand just how small of a slice of the sky telescopes have been able to look at. I think Hubble could look at like 0.1%, maybe 1 % of the sky at once. And this telescope, the Roman telescope is going to be able to look at 12 % of the sky at once. Now, granted, that's still not all of the sky. That is a big, big chunk of sky, which is why there's so much data associated with this. And it's going to take a lot of processing to to look through that sift through that data but we're going to have so many astronomical and possibly physics related discoveries because of it yeah this the sky is a big place how big is it that there are an order of magnitude or two more stars in the sky than there are grains of sand on the earth when you when you think about that like you take all the sand on all the beaches and in the bottom of the ocean and say there's more stars in the sky that we can observably see the sky is even bigger than that because there's so there's some things that are so far away that we just can't see the light from them yet so we don't really know how big the ultimate size of the universe is only what we can see the observable universe but it is a big place so the fact we can even see 0.01 of it is pretty impressive that's still a lot how big it is that's still a lot yeah and and this being able to see 12 is really going to be able to image galaxies and filaments, if you know what those are.

24:59It's going to be incredible. And if you are still sitting there thinking like, wait, if the images are that big, how am I going to look at one? They will downsize some images. They will make some... A lot of the images that you see from telescopes are certainly not all the data that telescope collected anyway.

25:16Robb Dunewood: Guessing they might use some artificial intelligence, Tom, to actually make, you know, to crunch some of that stuff down and make it visible to us. I imagine they will be. Absolutely. Instagram announced it will reduce the reach of any account that has an LLM generated persona that does not label itself as an AI generated profile. That tag is meant for profiles that feature an AI generated person. There's been a rise in video posts featuring influencers that are generated by machines. Yeah, this is one of those big stories out there that I think is catching people's eyes who use Instagram and have been frustrated when they saw a doctor telling them something and then found out later that's not a doctor.

25:53That was created by Veo or something like that. And this is Instagram saying, ah, okay, people don't like that. We need to put a label on that so that folks know the difference between someone who is human pretending to be a doctor and someone who is absolutely not even a human.

26:12Robb Dunewood: There is an interesting dance that companies are having to participate in right now because there are some AI related things that people have just shown. We just don't care. It's like, give me the AI. More is cool. But there are some things that we care about immensely. And it's like, you didn't care at all about this. We moved literally one meter to the left and now you care to the point to where we're the most horrible company on the planet. it. So, so it's, it's, it's very interesting because these things that, you know, where you are creating personas, um, even if, you know, it's kind of clear that they're personas when you're watching it, they're saying, no, we're going to make this absolutely clear because we know that eventually it'll get to the point to where you won't be able to tell that this is not a human.

26:58Robb Dunewood: So you need to label it. And if you don't label it, we're going to derank you. We're going to, we're going to downplay your video. If you do not let people know. And that's the interesting part is if you label it, your reach is not restricted. So these virtual influencers can still get the reach. They just have to admit that they're not people, that they are an AI-generated person. And a bit of the problem for them is that if they are actually trying to play on people not knowing that they are AI, that's just dishonest. And that's what Instagram is saying. No, we can't allow the dishonesty here.

27:29And potentially that reduces the number of those that do that. when there are perfectly, you know, fun entertainment reasons to have a virtual persona that some people won't mind as long as they know that it's virtual. Just let me know it's Johnny Five. Yeah, exactly. Johnny Five is, well, Johnny Five said he was alive. I don't know that these, these things are actually. We are alive though. We do live streams every week. We do mailbag and we do a DTNS live. You can catch all of those by becoming a subscriber at youtube.com slash Daily Tech News Show.

28:10Robb Dunewood: This is Matt Rogers from Lost Culture East. That's with Matt Rogers and Bowen Yang. This is Bowen Yang from Lost Culture East. That's with Matt Rogers and Bowen Yang. You know when people try a new food and suddenly it's like, wait. That's the reaction a lot of people are having when they first try Kewpie mayo. It's the one with the red cap and the little baby on the bottle. You've probably seen it in the grocery store before. And if you've ever just walked past it, some people would say that's a huge mistake. Because this mayo is different. Most mayonnaise uses whole eggs. Kewpie only uses egg yolks, which gives it this rich umami flavor.

28:43Robb Dunewood: It's smoother, deeper, and almost buttery. Once people try it, they start putting it on everything. Egg sandwiches, fries, burgers. Some fans even swear by dipping pizza crust in it. And once you notice it, you start seeing it everywhere. Chefs use it. Restaurants use it. People who really care about flavor use it. Never tried it? Grab the bottle with the red cap next time you're at the store. Put it on just about anything. Then you'll understand. QP, the original Japanese mayonnaise. This ad is sponsored by ZocDoc. Hi, it's Danny Pellegrino from Everything Iconic. Have you been putting off that annual doctor's appointment because you don't want to make the call?

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30:16Let's get to the quick headlines that are good to know. Going to make it look smart.

30:21Robb Dunewood: archive has extracted 12 to 13 terabytes of data from an endpoint on valve's legacy infrastructure the data is from between 2003 and 2013 and includes internal projects and third-party releases including an early weapon asset from half-flight 2 episode 3 and portal 2 concepts yeah i gotta admit i got a kick out of seeing uh the early version of glados wake waking up uh that they showed. It's just, it's funny. It's like seeing a behind the scenes or a making of where you see those early mock-ups and stuff. I know Valve didn't intend this to go out, but it is fascinating to look at. It's also Tim Cook's last day as CEO of Apple, and he sent a goodbye memo expressing enormous comfort that John Ternus is taking over the role and reminding folks that he's not quitting.

31:11He's going to continue to work at Apple as executive chairman. He'll be responsible for Apple's relationships with governments around the world. Basically, he's becoming chief lobbyist. Ternus' first big event as Apple CEO will take place on Wednesday, September 9th. Apple's expected to announce a foldable iPhone, amongst other things. Also, right before the show, we learned that Senior Vice President Phil Schiller is going to step down from his role leading the App Store and product events, but he's going to stay with Apple. He'll just be working on unspecified initiatives.

31:41Robb Dunewood: Microsoft is instructing users to ignore notifications that say Microsoft Defender antivirus is turned off. That may appear even if settings confirm Defender is working after the latest updates are installed. Microsoft says it's working on a fix. Also, the August 2026 non-security preview update reverts your mouse settings and then won't let you change them back. It's investigating that too. At least that one's in preview. But yeah, you know, it's our regular Microsoft is working on a fix update. Schools and other organizations that use the paper cut print management software need to install a second emergency security update to patch two actively exploited vulnerabilities.

32:22There was a patch that came out, but then researchers found workarounds to those patches. So now there's a second patch.

32:29Robb Dunewood: The OpenClaw Foundation released version 2.0 of its open source agentic platform, including shared cloud sessions, a smoother their onboarding process and a rebuilt browser app. The information has sources saying China's CXMT is producing its first batch of HBM3E chips. That's a form of high bandwidth memory and of course high bandwidth memory in big demand for data centers. So that's a very profitable thing for CXMT to make. Now those chips are still a generation behind HBM4, which is made by Samsung, SK Hynix and Micron. And CXMT is still probably three to five years behind those companies, but catching up.

33:08This is a significant advance for Chinese memory makers who are being forced to get ahead because of restrictions placed on them by the U.S. government.

33:18Robb Dunewood: LG Energy Solutions has agreed to buy battery-grade lithium carbonate from Smackover Lithium, a joint venture of a Norwegian and Canadian company that extracts lithium from the U.S. state of Arkansas. all. And that's the opposite. China has restrictions on lithium. And so this is causing other companies to go, well, let's go find other places to get the lithium. And they're getting - I was just going to say, this is one of those words where it's almost like Fair Play is turdabout or turdabout is fair play. But again, this is literally, we're doing this because of what's happening. So yeah. Huawei may be making a great comeback, gaining 20 % of the market in China, but it is not immune to the memory shortage as it posted a steep profit decline for the last quarter.

34:02Revenue rose 10%, but net income fell 36%.

34:06Robb Dunewood: Ramageddon is hitting everywhere. No one can escape it. OpenAI said his advertising business had reached a$1 billion annual rate. For comparison, Google's annual ad revenue is$294.69 billion. So only 270 times more than the company that just met some standards that is now going to be looked at like a very large company in European Union. I mean, the advertising business is working for OpenAI. It's just, you know, it's not going to be threatening. It ain't working like it's working for Google, though. Yeah, yeah, they got a ways to go for that. NVIDIA is investing$3.5 billion into Taiwan's chipmaker MediaTek.

34:46And in exchange, MediaTek will use NVIDIA's NVLink Fusion and NVHBM tech to help components communicate.

34:53Robb Dunewood: And 18 months after passing 6 billion downloads, free and open source media player VLC has passed 7 billion downloads. Ah, VLC, an oldie but a goodie. Glad to see it's still kicking. Yeah. Well, folks, we end every episode of Daily Tech News Show with some shared perspectives. Today, Bodhi has a trick for telling if a piece of sleep tech is reliable or not. Yeah. Bodhi writes, hi, DTNS friends. I love the sleep talk across the different hosts. Today, I was listening to Jason and Wen talk about devices designed to help with circadian rhythms. For the average person, it's hard to know if a device actually does what it says it does.

35:32Earlier this year at CES, the National Sleep Foundation, a respected organization in the sleep world, rolled out something called Sleepmark. The idea is pretty simple. NSF, in this case National Sleep Foundation, not Science Foundation, independently evaluates sleep-related products using scientific testing to see whether they actually do what they claim to do. Companies apply, have their submissions reviewed by staff who evaluate the claims against NSF objective criteria, consensus standards, and the foundation's guidelines. The companies must provide documentation and formally attest that they have evaluated and can support their claims.

36:11The designation essentially means the product aligns with the National Sleep Foundation's principles and standards, but it's not exactly a technical warranty or a clinical guarantee of the manufacturer's specific health claims. Products that meet the criteria, though, can slap the NSF Sleepmark logo on the package. I'm not saying someone shouldn't buy a device just because it doesn't have the Sleepmark. The certification is still pretty new. There are plenty of good products that haven't gone through the process. But if a device does have it, you can feel a little more confident. Just thought it might be a useful resource the next time sleep tech comes up on the show.

36:48You can find more about the National Sleep Foundation at then sf.org. Thank you, Bodhi.

36:55Robb Dunewood: Yeah. And, you know, we generally know Bodhi for, you know, being a firefighter or more so talking about EVs and stuff like that. But that guy is really into sleep. So he knows his stuff here. He knows his stuff here. Yeah. Yeah. And a good thing to know. And I like how he's like, look, this doesn't tell you it's foolproof, but it tells you that somebody looked at it and vetted the claims and said, all right, you know, these might be worthwhile. So something to look for. I appreciate that. Well, folks, we want to know what you're thinking about. So if you've got some insights into a story, please, please, please share it with us at feedback at DailyTechNewsShow.com.

37:32Yeah, big thank you to Bodie for contributing to today's show. Thank you for being along for Daily Tech News Show. You're the folks who keep us in business. become a patron, which you can do very easily at patreon.com slash DTNS. Helps us out. Help us out. Thanks. Bye.

37:56The DTNS family of podcasts, helping each other understand. Diamond Club hopes you have enjoyed this broker.

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