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Taiwanese companies eye expansion in Texas

Taiwanese electronics companies are preparing to increase investments in Texas, with major announcements expected in May, coinciding with President Donald Trump’s first 100 days in office. Richard Lee, head of the Taiwan Electrical and Electronic Manufacturers’ Association, revealed that several large Taiwanese companies, particularly those in the AI server industry, are looking to expand their operations in Texas. This follows proactive efforts by Texas’ Republican-led government to attract Taiwanese investment.

The move comes as Trump has criticised Taiwan for its semiconductor business and threatened tariffs on trade partners with significant trade deficits, potentially targeting Taiwan. Last week, Taiwan’s President Lai Ching-te pledged to invest more in the US, adding to the momentum. Companies like Foxconn, Compal, and Inventec, which already have operations in Texas, are expected to announce further expansions, particularly to accommodate the growing demand for AI-related technologies.

Foxconn, which manufactures products for major tech companies like Apple and Nvidia, has already made a $33 million investment in land and factory buildings in Texas. With the demand for AI servers rising, Taiwanese manufacturers are eyeing Texas as a strategic location to meet the growing market needs. However, neither Foxconn nor Compal has yet provided specific details on their plans.

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Mexico challenges Google over Gulf of Mexico name change

Mexico has strongly opposed Google’s decision to rename the Gulf of Mexico as the ‘Gulf of America’ for US users of Google Maps. President Claudia Sheinbaum has urged the tech giant to reverse the change, which follows a decree by the US government under President Donald Trump. She argues that the long-established name is internationally recognised and should not be altered unilaterally.

Sheinbaum reiterated Mexico’s stance on Thursday, stressing that Google has yet to address the country’s concerns. She pointed out that the US government’s authority extends only to its territorial waters and does not justify a broader renaming of the Gulf. While the name remains unchanged for users in Mexico, Google Maps outside the two countries now displays both names.

If Google refuses to restore the original name, Mexico is prepared to take legal action, Sheinbaum warned. ‘If necessary, we will file a civil suit,’ she stated, adding that the government’s legal team is already exploring its options. Google has not yet responded to the controversy.

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Indian music industry joins lawsuit against OpenAI

Several of India’s leading Bollywood music labels, including T-Series, Saregama, and Sony, seek to join a lawsuit against OpenAI in New Delhi. They are concerned that the company’s AI models may have used their sound recordings without permission, potentially violating copyright laws. The legal action follows a previous lawsuit filed by Indian news agency ANI, which accused OpenAI’s ChatGPT of using content without authorisation to train its models. The music labels argue that this issue has significant implications for the global music industry.

The music companies, which represent major Indian and international music acts, claim that OpenAI’s AI systems could extract lyrics, compositions, and sound recordings from the internet without consent. T-Series, known for releasing thousands of songs annually, and Saregama, which holds a vast catalogue of iconic Indian music, are leading the charge. The Indian Music Industry (IMI), which also represents global labels like Sony Music and Warner Music, is pushing for the case to be heard in court, as the outcome could impact the future use of copyrighted content in AI training.

OpenAI, backed by Microsoft, argues that it adheres to fair-use principles by using publicly available data to build its AI models. However, the company is facing increasing legal pressure from multiple sectors worldwide, including recent lawsuits in Germany, where GEMA accused OpenAI of unlicensed use of song lyrics. OpenAI has opposed the Indian lawsuit, claiming that Indian courts do not have jurisdiction over the matter, given the company’s US base.

The next court hearing, which could shape the future of AI and copyright law in India, is scheduled for 21 February. This legal battle is gaining attention, particularly as OpenAI’s chief, Sam Altman, recently visited India to discuss the country’s plans for developing low-cost AI technology.

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EU denies US influence over AI regulation rollback

The European Union has dismissed claims that recent decisions to scale back planned AI regulations were influenced by pressure from the US Trump administration. The bloc recently scrapped the AI Liability Directive, a draft law intended to make it easier for consumers to sue over AI-related harms. EU digital chief Henna Virkkunen stated that the move was driven by a desire to enhance competitiveness by reducing bureaucracy and regulatory burdens.

Washington has encouraged a more lenient approach to AI rules, with US Vice President JD Vance urging European lawmakers to embrace the ”AI opportunity” during a speech in Paris.

The timing of the European Commission‘s 2025 work programme release—one day after Vance’s remarks—has fuelled speculation about US influence over the bloc’s regulatory decisions. However, the EU insists that its focus remains on fostering regional AI development rather than bowing to external pressure.

The upcoming AI code of practice will align reporting requirements with existing AI legislation, ensuring a streamlined regulatory framework. The Commission’s work programme emphasises a ”bolder, simpler, faste” approach, aiming to accelerate AI adoption across Europe while maintaining regulatory oversight.

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Modi and Musk discuss technology, space, and Starlink’s India plans

Indian Prime Minister Narendra Modi met with Tesla and SpaceX CEO Elon Musk in Washington to discuss space, mobility, technology, and innovation.

The meeting also explored ways to strengthen cooperation in emerging technologies, entrepreneurship, and governance, according to India‘s foreign ministry. Modi’s visit to the United States has brought key discussions on commercial space activities and technological collaboration between the two countries.

Starlink’s potential entry into the Indian market was reportedly a key topic of discussion. The satellite internet provider has long sought to operate in India but has faced regulatory challenges and opposition from local competitors, including billionaire Mukesh Ambani’s company.

The Indian government has supported Musk’s stance that satellite spectrum should be assigned rather than auctioned, but Starlink’s licence application remains under review.

India’s decision on Starlink could reshape the country’s satellite internet sector and influence its position in the global space race.

SpaceX‘s dominance in satellite launches and internet services has already impacted global markets, and its expansion into India would be a significant step in its international growth. Musk continues to act as a crucial link between world leaders and SpaceX, which plays a key role in the Western space industry.

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Meta opens Facebook Marketplace to rivals after EU antitrust fine

Meta has announced a new programme allowing rival classified ad providers to list their adverts on Facebook Marketplace, following a €797 million EU antitrust fine for unfair competition.

The European Commission ruled in November that Meta had given its own service an unfair advantage by tying Marketplace to Facebook and imposing restrictive trading conditions on competitors.

The company has challenged the fine in court but says the new initiative, called the Facebook Marketplace Partner Program, is a response to EU competition concerns.

The programme was tested last month in Germany, France, and the United States in partnership with eBay. Under the scheme, third-party online classified ad services can display their listings on Facebook Marketplace alongside user-generated listings.

Meta maintains that the EU’s decision unfairly targets US companies, with CEO Mark Zuckerberg previously describing EU actions as akin to a “tariff regime.”

The European Commission is now reviewing whether Meta has fully complied with the ruling. If found lacking, the company could face further scrutiny and potential penalties. The move marks a significant shift in how Marketplace operates, potentially reshaping competition in the online classified ads sector.

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US utilities boost spending to meet surging AI energy demand

US electric utilities are significantly increasing their capital investment plans to expand power generation and strengthen the grid as AI and cloud computing drive up electricity consumption.

Companies such as PPL Corp, Dominion, and Exelon have revised their spending plans upward, with PPL announcing a nearly 40% increase to $20 billion through 2028.

The surge in demand is largely fuelled by data centres, which are now being built at an unprecedented scale, reaching capacities of up to 1 gigawatt per site.

Utility executives have dismissed concerns that market disruptions, such as Chinese AI startup DeepSeek’s recent emergence, would weaken demand from major tech firms.

Instead, companies including American Electric Power (AEP) and Duke Energy have received assurances from technology customers that their expansion plans remain unchanged. AEP is considering adding $10 billion to its existing $54 billion capital plan, while Duke is increasing its five-year spending by $10 billion.

Rising demand for electricity is expected to reach record levels in the US by 2026, driven not only by data centres but also by manufacturing and electrification in sectors like transportation.

While utilities race to expand power supplies, regulatory approval remains a challenge, and increased investment could lead to higher electricity costs for households and businesses.

Some utilities are also exploring whether data centres should bear a greater share of the costs associated with grid expansion.

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AI revolutionising the wealth management industry

AI is set to revolutionise wealth management by lowering the barriers to entry for new players, according to a Microsoft executive. Martin Moeller, head of AI for financial services at Microsoft, highlighted that AI’s ability to process vast amounts of data could allow small teams or even individuals to offer services that traditionally required entire teams at banks. This shift is expected to reshape the competitive landscape, much like the internet did decades ago.

AI is already being used in the financial sector, with Swedish payment provider Klarna employing AI from OpenAI to handle tasks previously carried out by 700 employees. UBS, the world’s largest asset manager, also sees significant potential in AI to boost productivity and ease job functions. AI is expected to reduce operational costs for startups and allow banks that have not been involved in wealth management to enter the market with minimal investment.

Customer behaviour is also changing, with younger entrepreneurs increasingly managing their own investments. In response, banks are using AI to enable customers to consolidate financial information independently. While AI currently does not provide specific investment advice, ‘agentic AI’ is expected to be developed in the next two years, which will make independent decisions without human input, further transforming the industry.

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Alibaba secures major AI deal with Apple

Alibaba has announced a new partnership with Apple to support the development of AI services for iPhones in China, a move that aims to help Apple counter declining smartphone sales in its crucial market. The collaboration is seen as a significant win for Alibaba, which is gaining ground in China’s competitive AI industry, dominated by local players like DeepSeek. This deal comes after months of speculation regarding Apple’s AI strategy in the region, as the tech giant held discussions with other Chinese companies such as Baidu, ByteDance, and Tencent.

While the specifics of the partnership are still unclear, Alibaba’s chairman Tsai noted that Apple chose their AI technology to power its phones in China. The two companies have already submitted necessary regulatory materials to Chinese authorities, as consumer-facing AI products in the country require approval. Alibaba’s stock saw a notable rise following the announcement, reflecting investor optimism about the deal.

The timing of this collaboration is crucial for Apple, which has faced challenges in China, including falling iPhone sales and increased competition from domestic rivals like Huawei. Analysts suggest that Apple’s struggles in the region are partly due to the lack of advanced AI features in its phones, a growing demand in the Chinese market. Apple’s sales in Greater China dropped significantly in late 2024, and the company lost its top position in the market to local players like Vivo and Huawei.

For Alibaba, the partnership underscores its growing strength in AI, with its stock price surging in 2025. The company’s Qwen 2.5 AI model, which surpassed the capabilities of competitors, has become a focal point of its recent success. As Apple seeks to re-establish its presence in China, the effectiveness of this AI collaboration will likely play a critical role in its future in the market.

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DeepSeek models boost competition for Chinese AI chipmakers

The rise of DeepSeek’s AI models is offering Chinese chipmakers like Huawei a better chance to compete in the domestic market against the powerful processors from US companies like Nvidia. For years, Huawei and other Chinese manufacturers have struggled to match Nvidia’s high-end chips, which are essential for training AI models. However, DeepSeek’s focus on ‘inference’ rather than raw processing power has led analysts to believe that it could help close the gap between Chinese-made processors and their US counterparts. Inference refers to the phase where AI models use trained data to make predictions, a process less reliant on heavy computational resources.

Several Chinese AI chipmakers, including Huawei, EnFlame, and Moore Threads, have recently stated that their products will support DeepSeek models, although few details have been disclosed. Industry executives predict that DeepSeek’s open-source nature and its low fees will drive the adoption of AI, helping Chinese companies bypass US export restrictions on advanced chips. In fact, Chinese chips like Huawei’s Ascend 910B have already been recognised as better suited for inference tasks, which require less computational power than training.

Despite these developments, Nvidia still dominates the global AI chip market. Analysts point out that while Chinese chips are cost-effective for inference tasks, Nvidia’s superior chips remain the preferred choice even for inference. Nvidia’s CUDA platform, which provides developers with a robust software environment, remains a key advantage, and Chinese companies like Huawei have struggled to convince developers to abandon CUDA in favour of their platforms, such as Huawei’s Compute Architecture for Neural Networks (CANN). The software performance of Chinese AI chips continues to lag behind, making it challenging for them to directly challenge Nvidia’s dominance.

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