Microsoft has reportedly scrapped leases for significant data centre capacity in the United States, raising concerns about a potential slowdown in its AI infrastructure expansion.
TD Cowen analysts revealed that the company cancelled leases amounting to “a couple of hundred megawatts” with at least two private data-centre operators. The move has added weight to investor worries that the AI-driven market surge may be losing momentum.
Despite the lease cancellations, Microsoft maintains its commitment to invest over $80 billion in AI and cloud capacity this fiscal year.
A company spokesperson confirmed the investment plan remains intact, noting that adjustments to infrastructure are part of strategic planning rather than a broader scale-back.
Analysts suggest the lease cancellations might reflect a shift in Microsoft’s data centre strategy following years of aggressive expansion to meet AI demand.
Supply chain constraints had previously forced the company to secure excess capacity, sometimes at premium rates.
However, with growing investor scepticism around the costs of AI infrastructure and emerging competition from low-cost Chinese firms like DeepSeek, Microsoft’s recalibration has intensified concerns about the long-term sustainability of the AI boom.
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Nvidia has filed a lawsuit against the European Commission for accepting a referral from Italy to review its acquisition of AI startup Run:ai. The US chipmaker argues that the Commission violated a recent court ruling that restricts its powers over minor transactions. This case follows growing concerns over the Commission’s use of Article 22, which allows it to review smaller mergers that fall below EU merger thresholds, a move companies have criticised as overreach.
While the case will not impact the approval of the AI‘s deal, which was cleared in December, a ruling in favour of Nvidia could curb the European Commission’s ability to regulate similar transactions in the future. Nvidia argues that the decision breaches legal principles, including proportionality and equal treatment, and undermines legal certainty for businesses operating in the EU.
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More than 1,000 musicians have joined forces to release a silent album as part of a protest against the UK government’s proposed changes to copyright laws. The changes would allow AI companies to use artists’ work to train models without needing permission, a move critics argue would undermine creators’ rights. The silent album, titled ‘Is This What We Want?’, features empty studios and performance spaces, symbolising the potential loss of control over their work.
The changes have sparked outrage from high-profile artists such as Kate Bush, who warned that this could lead to the exploitation of musicians by tech companies. The protest album, which includes contributions from other major artists like Ed Sheeran and Dua Lipa, aims to highlight the negative impact of such reforms on the livelihoods of creators.
The UK government argues that these changes will help boost the AI and creative industries, allowing them to reach their full potential. However, the controversy over copyright law is growing, with many in the music industry urging a rethink before any new regulations are finalised.
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Google has launched a new free AI tool aimed at helping developers with code completion and assistance. Gemini Code Assist for Individuals allows users to interact with a Google AI model through a chat window, helping to fix bugs, complete code, or explain parts of a codebase. The tool can be integrated into popular coding environments like VS Code and JetBrains, and supports a range of programming languages. It offers impressive capabilities, with 180,000 code completions per month—90 times more than GitHub’s free Copilot plan—and 240 daily chat requests, well beyond the limits of competing tools.
In addition, Google unveiled Gemini Code Assist for GitHub, a tool that automatically scans code in pull requests to identify bugs and provide helpful suggestions. These tools highlight Google’s increasing efforts to compete with Microsoft and GitHub in the developer space. Both tools leverage Google’s Gemini 2.0 AI model, fine-tuned for coding tasks, and offer a context window four times larger than similar models, enabling the AI to process more complex code.
The launch marks a strategic move by Google to attract developers, especially those early in their careers, with the hope that some will eventually transition to premium plans. Gemini Code Assist for Individuals is available through a free public preview, with Google planning to roll out additional enterprise features soon, including integration with third-party tools and more advanced customisation options for businesses.
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Indian billionaire Mukesh Ambani is focusing on small businesses and promoting innovative neuroscience research to boost Reliance’s revenue from the Indian Premier League (IPL). After striking an $8.5 billion merger with Walt Disney, Reliance plans to attract small companies to advertise during the IPL by offering affordable ad packages starting at $17,000. The company has been conducting closed-door seminars in various Indian cities to pitch these packages, aiming to expand its digital ad inventory and increase streaming revenue.
Reliance is also experimenting with “brain mapping” research to show higher engagement rates for its IPL ads compared to rivals like Google and Meta. The company claims its ads have up to four times more focus, engagement, and memorability, based on neural studies of participants. However, the ad rates for IPL streaming have risen by up to 25%, creating competition with lower-cost platforms like Instagram and YouTube, where some businesses find advertising more affordable.
Despite heavy investments in IPL and other cricket rights, Reliance faces challenges in making the venture profitable. The company is battling major global players in India’s growing digital advertising market, where Google and Meta dominate. Reliance’s ad pitch focuses on user data, offering targeted ads based on viewer demographics. Yet, experts argue that Reliance’s efforts, including using brain scans to boost ad appeal, may not be enough to compete with the sheer reach of platforms like YouTube.
The high cost of IPL broadcast rights, coupled with increasing ad rates, puts pressure on Reliance’s strategy. Still, Ambani remains confident in the IPL’s potential to attract advertisers and retain viewers who may subscribe to additional content offerings. With competition intensifying in India’s $28-billion digital ad market, Reliance’s new tactics may shape its future in the entertainment and advertising sectors.
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In Nagpur, India, flower shop owner Ashish Nagose is one of many young Indians turning to cryptocurrency trading as a way to supplement their income. With regulations tightening around equity derivatives in India, Nagose hopes that trading in crypto assets like Bitcoin and Ethereum can provide stability during slower months for his family-owned flower business. His efforts reflect a broader trend among young Indians who are increasingly looking to cryptocurrencies as a source of income, with the crypto market in India growing rapidly.
The surge in cryptocurrency trading volumes on Indian exchanges has been remarkable, more than doubling in the last quarter of 2024. As of now, young retail traders, particularly in smaller cities like Jaipur, Lucknow, and Pune, are driving much of the interest in crypto. Many of these individuals are seeking opportunities to earn more in a country where job growth has not kept pace with the economy. With India’s crypto market projected to grow to $15 billion by 2035, local platforms like CoinSwitch are seeing increasing numbers of users.
However, this rise in crypto interest is not without challenges. The Indian government has imposed steep taxes on crypto trading and has issued warnings about the risks and volatility of these digital assets. Despite these concerns, young traders like Sagar Neware are determined to make a living through crypto, aiming to restart their family’s business with the money they earn from trading.
The surge in crypto trading in India is also drawing attention to the need for regulatory oversight. While the government has yet to adopt comprehensive regulations for cryptocurrencies, it has warned of potential risks to macroeconomic stability. Despite the central bank’s caution, India’s young crypto enthusiasts are undeterred, continuing to learn and trade in hopes of a more prosperous future.
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Recent weeks have seen a surge in AI-generated videos that transport viewers to historical eras, from the medieval streets during the Black Death to the dramatic eruption of Vesuvius. Creators Dan from the UK and Hogne from Norway, behind the accounts POV Lab and Time Traveller POV, have produced these first-person narratives to bring history to life in a unique and engaging manner.
While the videos have attracted millions of views and sparked widespread fascination, several historians have raised concerns over their historical accuracy. Experts such as Dr Amy Boyington and Dr Hannah Platts point out numerous inaccuracies, including anachronistic details like modern bread rolls and train tracks in medieval scenes, that risk misrepresenting historical facts. They caution that such artistic interpretations, though visually striking, could mislead young viewers and distort their understanding of history.
The creators defend their work as a means to spark curiosity and encourage further research, openly acknowledging that their videos are not intended to be strict documentaries. They label their content as AI-created and urge audiences to verify historical details independently. Despite the debate, these innovative videos are opening up new ways for the public to engage with the past, even as calls for greater accuracy and transparency grow louder.
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Indonesia and Apple have reportedly reached an agreement to lift the country’s ban on iPhone 16s, with a potential deal expected to be signed this week. The ban was imposed in October after Apple failed to meet the requirement that smartphones sold in Indonesia must include at least 35% locally-made parts.
As part of the agreement, Apple will invest $1 billion into a manufacturing plant in Indonesia, focused on producing components for smartphones and other products. Additionally, Apple will commit to training local workers in research and development, expanding beyond its existing Apple academies. However, Apple has no immediate plans to begin iPhone production in the country.
Neither Apple nor Indonesia’s Ministry for Industry have responded to requests for comment on the matter.
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Although a Berlin court initially supported the activists’ request, X filed a motion arguing the judge had shown bias by interacting with the plaintiffs’ social media posts. The court approved the motion, though similar claims against two other judges were dismissed.
The ruling means that the activists will not receive the requested data within their critical timeframe. A hearing on the matter is set for February 27, but any ruling will come too late to influence their election monitoring efforts in Germany.
However, the decision could establish an important precedent for future transparency cases involving social media platforms. The activists had argued that while some election data is technically accessible, it is not realistically obtainable without direct access from X.
X has also announced plans to sue the German government over what it calls excessive user data requests, claiming these demands violate privacy and freedom of expression.
The German digital affairs ministry acknowledged X’s public statements but confirmed that no formal lawsuits had been filed yet. The escalating legal dispute highlights growing tensions between Musk and German authorities, particularly as the country prepares for key elections amid concerns over misinformation.
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Chinese AI startup DeepSeek has announced plans to release five new code repositories next week, reinforcing its commitment to open-source artificial intelligence.
The company, which gained global attention with its R1 reasoning model rivaling Western AI systems, described the release as ‘small but sincere progress’ towards full transparency. These repositories, tested in real-world applications, will provide essential infrastructure to support the AI models DeepSeek has already made public.
DeepSeek has set itself apart in China‘s AI sector by embracing open-source practices, a rare move in a market that typically favours closed-source models.
Founder Liang Wenfeng has emphasised the cultural significance of open-source over commercial gains, highlighting the satisfaction that comes from driving innovation and earning industry respect.
His approach has sparked global interest, particularly after the release of the R1 model, known for its strong performance and cost efficiency.
The company has also recently introduced a new algorithm, Native Sparse Attention (NSA), designed to improve efficiency in long-context training and inference.
DeepSeek’s popularity has surged, becoming China’s leading chatbot service with 22.2 million daily active users, surpassing long-established platforms like Douban. The growing user base and commitment to open-source are positioning DeepSeek as a major player in the global AI landscape.
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