NewsBreak, a news app based in the United States with roots in China, recently came under scrutiny for publishing inaccurate stories generated by AI technology. Last Christmas Eve, the app published a false article about a shooting in Bridgeton, New Jersey, which the local police department later confirmed did not occur. The company removed the article four days later, attributing the inaccurate information to the content source.
Despite claims of being a reliable source for local news, NewsBreak has faced criticism for errors in reporting. In at least 40 instances since 2021, the app has published erroneous stories, created fictitious bylines, and lifted content from competitors. This has led to real-world consequences, with local charities having to turn away people due to inaccurate information published by NewsBreak.
The company generates revenue through advertising to its predominantly female, older user base in suburban and rural areas of the U.S. NewsBreak is a subsidiary of Yidian, a Chinese news aggregation app, and its primary backers include private equity firms based in both San Francisco and Beijing. Concerns have been raised about the involvement of Chinese-based engineers in the app's development, with questions about data privacy and access to American user data.
In response to these concerns, NewsBreak has stated that it complies with U.S. data and privacy laws and operates on U.S.-based servers. The company maintains that it is a U.S.-based business and not subject to Chinese data laws. However, the use of Chinese-based engineers has raised potential red flags, especially in light of recent controversies surrounding Chinese-owned tech companies like TikTok.
The future of NewsBreak remains uncertain as it navigates issues of accuracy, data privacy, and its ties to Chinese investors. The company's reputation as a reliable source of local news may be at stake as it grapples with these challenges.