HPE wins $1 billion AI server deal with Musk’s X

Hewlett Packard Enterprise (HPE) has secured a deal worth over $1 billion to supply AI-optimised servers to Elon Musk’s platform X. The agreement, finalised late last year, was reported by Bloomberg News, citing sources familiar with the matter. Dell Technologies and Super Micro Computer had also submitted bids but were not selected.

The AI server market has experienced significant demand as businesses seek advanced hardware for AI applications. Musk’s ventures, including Tesla and xAI, have become key customers for this technology.

HPE shares saw a 1% rise during afternoon trading following the report. The company declined to comment on the deal.

TSMC starts 4-nanometre chip production in Arizona

Taiwan Semiconductor Manufacturing Company (TSMC) has started producing advanced four-nanometre chips in Arizona, marking a significant achievement for US semiconductor manufacturing. Commerce Secretary Gina Raimondo described the development as a historic first for the nation, with production quality matching TSMC’s output in Taiwan.

TSMC’s Phoenix facility received a $6.6 billion government grant to support chip production, alongside up to $5 billion in low-cost loans. The investment is part of a broader initiative to strengthen domestic chip production under a $52.7 billion programme established in 2022.

The company plans further expansion in Arizona, with a second fab producing two-nanometre chips by 2028 and a third fab by 2030. Raimondo aims for the US to produce 20% of the world’s advanced logic chips by the end of the decade.

Amkor Technology was also awarded $407 million to support a $2 billion semiconductor packaging facility in Arizona. Apple will be a major client, with its chips produced nearby at TSMC’s plant.

Digital art website crippled by OpenAI bot scraping

Triplegangers, was forced offline after a bot from OpenAI relentlessly scraped its website, treating it like a distributed denial-of-service (DDoS) attack. The AI bot sent tens of thousands of server requests, attempting to download hundreds of thousands of detailed 3D images and descriptions from the company’s extensive database of digital human models.

The sudden spike in traffic crippled Ukrainian Triplegangers’ servers and left CEO Oleksandr Tomchuk grappling with an unexpected problem. The company, which sells digital assets to video game developers and 3D artists, discovered that OpenAI’s bot operated across hundreds of IP addresses to gather its data. Despite having terms of service that forbid such scraping, the company had not configured the necessary robot.txt file to block the bot.

After days of disruption, Tomchuk implemented protective measures by updating the robot.txt file and using Cloudflare to block specific bots. However, he remains frustrated by the lack of transparency from OpenAI and the difficulty in determining exactly what data was taken. With rising costs and increased monitoring now necessary, he warns that other businesses remain vulnerable.

Tomchuk criticised AI companies for placing the responsibility on small businesses to block unwanted scraping, comparing it to a digital shakedown. “They should be asking permission, not just scraping data,” he said, urging companies to take greater precautions against AI crawlers that can compromise their sites.

Starmer unveils ambitious plan to position UK as global leader in AI technology

British Prime Minister Keir Starmer has announced an ambitious plan to position the UK as a global leader in AI. In a speech on Monday, Starmer outlined proposals to establish specialised zones for data centres and incentivise technology-focused education, aiming to boost economic growth and innovation. According to the government, fully adopting AI could increase productivity by 1.5% annually, adding £47 billion ($57 billion) to the economy each year over the next decade.

Central to the plan is the adoption of recommendations from the “AI Opportunities Action Plan,” authored by venture capitalist Matt Clifford. Measures include fast-tracking planning permissions for data centres and ensuring energy connections, with the first such centre to be built in Culham, Oxfordshire. Starmer emphasised the potential for AI to create jobs, attract investment, and improve lives by streamlining processes like planning consultations and reducing administrative burdens for teachers.

The UK, currently the third-largest AI market behind the US and China, faces stiff global competition in establishing itself as an AI hub. While Starmer pledged swift action to maintain competitiveness, challenges persist. The Labour government’s recent high-tax budget has dampened some business confidence, and the Bank of England reported stagnation in economic growth last quarter. However, Starmer remains optimistic, declaring, “We must move fast and take action.”

By integrating AI into its economic strategy, the UK hopes to capitalise on technological advancements, balancing innovation with regulatory oversight in an increasingly competitive global landscape.

Humanoid robot, China’s answer to AI-powered assistance

A Chinese robotics firm has unveiled its latest innovation, a humanoid robot called the D9, which aims to redefine the relationship between humans and machines in everyday tasks. Created by Shenzhen-based Pudu Robotics, the D9 stands 5.57 feet tall and is designed to carry out a wide range of duties across various industries, from warehouses to retail stores.

The Chinese D9 robot boasts advanced capabilities, including the ability to walk at 4.5 mph, navigate stairs, and carry loads up to 44 pounds. What sets it apart is its use of cutting-edge sensors to create real-time 3D maps, allowing for precise self-navigation. Additionally, it features “human-level” natural interactions through sophisticated AI, making it more intuitive to work alongside people in fast-paced environments.

Pudu Robotics is entering a competitive market dominated by global tech giants like Tesla, with their Optimus robot. While the D9’s price is yet to be announced, it is expected to be in a similar range to its rivals, around £16,000 to £24,000. The robot’s versatility could make it an attractive option for companies looking to streamline labour-intensive operations.

As humanoid robots like the D9 advance, they raise important questions about the future of work and human-machine interactions. Pudu’s latest creation may be a glimpse into a world where robots play an ever-larger role in both professional and personal settings.

Tokyo plans to expose makers of malicious AI systems

The Japanese government is considering publicly disclosing the names of developers behind malicious artificial intelligence systems as part of efforts to combat disinformation and cyberattacks. The move, aimed at ensuring accountability, follows a government panel’s recommendation that stricter legal frameworks are necessary to prevent AI misuse.

The proposed bill, expected to be submitted to parliament soon, will focus on gathering information on harmful AI activities and encouraging developers to cooperate with government investigations. However, it will stop short of imposing penalties on offenders, amid concerns that harsh measures might discourage AI innovation.

Japan’s government may also share its findings with the public if harmful AI systems cause significant damage, such as preventing access to vital public services. While the bill aims to balance innovation with public safety, questions remain about how the government will decide what constitutes a “malicious” AI system and the potential impact on freedom of expression.

Smart garbage trucks target battery dangers

A US waste management firm has introduced AI-powered electric garbage trucks to reduce fire risks caused by improperly disposed lithium-ion batteries. The vehicles, showcased at the Consumer Electronics Show (CES) in Las Vegas, can detect batteries in rubbish loads before they reach recycling centres, preventing potential fires.

Lithium-ion batteries, commonly used in gadgets like phones and toothbrushes, are highly flammable and often slip through existing detection systems at recycling facilities. Fires linked to these batteries have caused significant damage, with several US recycling centres burning down annually. The new trucks allow drivers to flag sensitive collections and alert facilities in advance.

The advanced trucks, developed by industrial firm Oshkosh, also come with electric arm technology to speed up collections and AI software to spot contamination in recycling bins. These features help reduce risks, improve efficiency, and allow companies to hold customers accountable for improper recycling. Waste management officials see electrification as a key step, as garbage trucks typically travel shorter distances, making them ideal for battery-powered operation.

Regulators weigh in on Musk’s lawsuit against OpenAI and Microsoft

US antitrust regulators provided legal insights on Elon Musk’s lawsuit against OpenAI and Microsoft, alleging anticompetitive practices. While not taking a formal stance, the Federal Trade Commission (FTC) and Department of Justice (DOJ) highlighted key legal doctrines supporting Musk’s claims ahead of a court hearing in Oakland, California. Musk, a co-founder of OpenAI and now leading AI startup xAI, accuses OpenAI of enforcing restrictive agreements and sharing board members with Microsoft to stifle competition.

The lawsuit also claims OpenAI orchestrated an investor boycott against rivals. Regulators noted such boycotts are legally actionable, even if the alleged organiser isn’t directly involved. OpenAI has denied these allegations, labelling them baseless harassment. Meanwhile, the FTC is conducting a broader probe into AI partnerships, including those between Microsoft and OpenAI, to assess potential antitrust violations.

Microsoft declined to comment on the case, while OpenAI pointed to prior court filings refuting Musk’s claims. However, the FTC and DOJ stressed that even former board members, like Reid Hoffman, could retain sensitive competitive information, reinforcing Musk’s concerns about anticompetitive practices.

Musk’s legal team sees the regulators’ involvement as validation of the seriousness of the case, underscoring the heightened scrutiny around AI collaborations and their impact on competition.

Taiwan eyes minimal disruption from US import policies

Taiwan is optimistic about the limited impact of US President-elect Donald Trump’s proposed tariffs on semiconductor exports, citing the nation’s technological edge in the global chip industry. On Friday, economy Minister Kuo Jyh-huei emphasised that Taiwan’s advanced semiconductor processes, led by industry giant TSMC, maintain an irreplaceable position in the supply chain for major companies like Apple and Nvidia.

Despite Trump’s pledges for sweeping tariffs—10% on global imports and up to 60% on Chinese goods—Taiwanese policymakers acknowledged potential challenges for the island’s export-driven economy. However, Kuo reassured that the chip sector’s resilience lies in its technological leadership, which mitigates the risk of significant disruption.

To adapt to the shifting trade landscape, Taiwan plans to help companies relocate parts of their supply chains to the United States if necessary. The island also aims to deepen cooperation in industries like aerospace and advanced technology by fostering ties with US and Japanese firms. This includes establishing a dedicated office in Japan to bolster collaboration on AI and drone development, Kuo said.

Taiwan’s proactive approach reflects its strategic positioning in global trade and its commitment to maintaining robust economic ties amid evolving US policies.

Meta accused of using pirated books for AI

A group of authors, including Ta-Nehisi Coates and Sarah Silverman, has accused Meta Platforms of using pirated books to train its AI systems with CEO Mark Zuckerberg’s approval. Newly disclosed court documents filed in California allege that Meta knowingly relied on the LibGen dataset, which contains millions of pirated works, to develop its large language model, Llama.

The lawsuit, initially filed in 2023, claims Meta infringed on copyright by using the authors’ works without permission. The authors argue that internal Meta communications reveal concerns within the company about the dataset’s legality, which were ultimately overruled. Meta has not yet responded to the latest allegations.

The case is one of several challenging the use of copyrighted materials to train AI systems. While defendants in similar lawsuits have cited fair use, the authors contend that newly uncovered evidence strengthens their claims. They have requested permission to file an updated complaint, adding computer fraud allegations and revisiting dismissed claims related to copyright management information.

US District Judge Vince Chhabria has allowed the authors to file an amended complaint but expressed doubts about the validity of some new claims. The outcome of the case could have broader implications for how AI companies utilise copyrighted content in training data.