{
  "docId": "019dd923-622c-750b-8b9a-5dc02a701cdd",
  "docSlug": "d7f2527e00c7",
  "documentTitle": "Datasection, Inc. (3905.TYO)",
  "authorId": "60_Wolfpack_Research",
  "authorName": "Wolfpack Research",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-10-08 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 11,
  "pageCount": 15,
  "prevPage": 10,
  "nextPage": 12,
  "slideType": "preempt_rebuttal",
  "function": "preempt_rebuttal",
  "density": "overcrowded",
  "nDataPoints": 0,
  "notes": "This is a research note from Wolfpack Research alleging illegal activity by Datasection.",
  "elementsJson": [
    "paragraph",
    "bullet_list",
    "screenshot",
    "footnote"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-5dc02a701cdd/11",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-5dc02a701cdd",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-5dc02a701cdd.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-5dc02a701cdd#slide-11",
  "components": [
    {
      "bbox": {
        "h": 0.06,
        "w": 0.74,
        "x": 0.13,
        "y": 0.52
      },
      "kind": "callout",
      "text": "U.S. Defense Department says Tencent and other Chinese companies have ties to China's military",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "23ef4b7a-99b9-489e-87df-48e4a24709da",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "We doubt BIS has given them any such license considering that if BIS had granted a license we think they would announce it with tremendous fanfare and then talk about it in every subsequent press release.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f40-73bb-a60e-cf58f92c2d43",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.74,
        "x": 0.145,
        "y": 0.182
      },
      "kind": "list",
      "text": "Exports, reexports, or transfers (in-country) of advanced computing ICs and commodities subject to the EAR to any party, such as foreign Infrastructure as a Service (IaaS) providers (e.g., data center providers), when the exporter, reexporter, or transferor has “knowledge” that the IaaS provider will use these items to conduct training of AI models for or on behalf of parties headquartered in D:5 countries (including China) or Macau.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "76c7f7f0-e777-4eb1-8570-f1a34842e919",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.77,
        "x": 0.118,
        "y": 0.335
      },
      "kind": "paragraph",
      "text": "These export controls coming from the US and echoed by Japan clearly are relevant for Datasection. They are building a data center powered by NVIDIA B200 GPUs, so they need a license from the BIS to provide computing power to any Chinese-owned company.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "34eaebc3-4bec-40b1-9a46-e2a171554a39",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.77,
        "x": 0.118,
        "y": 0.645
      },
      "kind": "paragraph",
      "text": "In our view, what Datasection is doing here is illegal and we have contacted the appropriate authorities at the BIS and Homeland Security along with officials in Japan. We at Wolfpack intend to keep hunting in Japan. Stay tuned for our next report.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "467c33d0-f064-4694-8814-66755f562160",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.77,
        "x": 0.118,
        "y": 0.405
      },
      "kind": "paragraph",
      "text": "We doubt BIS has given them any such license considering that if BIS had granted a license we think they would announce it with tremendous fanfare and then talk about it in every subsequent press release. The primary reason we think that will never happen is because Datasection customer does not appear to be just any China-based company—but Tencent, which was identified by the US as having ties to the Chinese military:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "77dd3849-2a8b-47a1-ad37-f805829f3a17",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.035,
        "w": 0.77,
        "x": 0.118,
        "y": 0.285
      },
      "kind": "paragraph",
      "text": "Additionally, Japanese policy is aligned with US policy on the matter of controlling exports to China that could be used in weapons or their development.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d61b0702-65cb-41c3-9f8d-27522178a87b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.77,
        "x": 0.118,
        "y": 0.098
      },
      "kind": "paragraph",
      "text": "The following activities may trigger a license requirement under the catch-all controls of part 744 of the EAR when there is “knowledge” (see inset below for further information about “knowledge” under the EAR) that the AI model will be used for a WMD or military-intelligence end use/user:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fa20e7fb-3aa5-4d83-8402-4e4d3c3f984e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "U.S. Defense Department says Tencent and other Chinese companies have ties to China's military — cbsnews.com",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-3f40-73bb-a60e-d0532af63c23",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.77,
        "x": 0.118,
        "y": 0.76
      },
      "kind": "source-note",
      "text": "Footnotes 1-7 detailing sources for the claims.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4e1b19d2-03e9-4621-96d9-e79d7cebbe7e",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 15,
      "from": 11,
      "beatId": "90549e4c-68af-4965-82e8-3698d9ada9dc",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "Disclaimer and appendix slides indicating a conclusive report.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [
    {
      "to": 15,
      "from": 11,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "1cfc5b64-51e4-48db-ab7d-29978f68f92c",
      "evidence": "Disclaimer and appendix slides indicating potential regulatory action.",
      "position": 1,
      "objective": "Highlight the potential consequences of inaction.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}