Capacity development

Nokia expands 5G partnership with Airtel

Nokia has signed a multi-year deal with Bharti Airtel to expand their core network collaboration instead of maintaining a limited partnership, aiming to enhance 5G service delivery.

The move will integrate 5G and 4G technologies into a unified server setup instead of running them separately, while also helping Airtel grow its 4G/5G customer base.

Nokia’s Fixed Wireless Access (FWA) will provide additional solutions for home broadband and enterprise-critical applications instead of relying solely on traditional infrastructure.

The rollout will cover network automation across most Airtel service regions in India, helping the telecom giant optimise its hardware footprint and reduce costs per bit by using appliance-based Packet Core gateways.

Airtel CTO Randeep Sekhon highlighted that Nokia’s Packet Core deployment will improve network quality and reliability instead of allowing congestion to impact customers.

Nokia’s president of cloud and network services, Raghav Sahgal, emphasised that this collaboration strengthens Airtel’s 5G standalone (SA) readiness, reinforcing Nokia’s leadership in core network solutions in India and globally.

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AI-powered brain implant turns thoughts into words in real-time

A brain implant powered by AI has enabled a paralysed woman to speak almost instantly, offering new hope for those who have lost their ability to communicate. Developed by researchers in California, the experimental system translates brain signals into speech in real-time.

Ann, a 47-year-old who lost her voice after a stroke 18 years ago, previously used a brain-computer interface (BCI) with an eight-second delay.

The latest model, published in Nature Neuroscience, reduces that time to just 80 milliseconds, allowing more natural conversations. Scientists trained the system using deep learning and reconstructed Ann’s voice from past recordings.

Although the vocabulary remains limited, the breakthrough marks a major step towards real-world applications. Researchers believe with proper funding, the technology could become widely available within a decade, helping many regain their voice.

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EU to invest €1.3 billion in AI and digital skills

The European Commission has announced plans to invest €1.3 billion in artificial intelligence, cybersecurity, and digital skills development under the Digital Europe Programme for the period 2025 to 2027.

The funding aims to strengthen Europe’s position in advanced technologies and ensure that citizens and businesses can benefit from secure and cutting-edge digital tools.

Henna Virkkunen, the European Commission’s digital chief, emphasised the importance of the initiative, stating that European tech sovereignty depends on both technological innovation and the ability of people to improve their digital competences.

The investment reflects a strategic commitment to ensuring Europe remains competitive in the global digital landscape.

The Digital Europe Programme has been central to the EU’s digital transformation agenda. Through this latest funding round, the EU seeks to further enhance its technological resilience, support innovation, and prepare the workforce for the demands of a fast-evolving digital economy.

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Google’s popular search feature gets a rival from Perplexity

AI search company Perplexity is developing a feature similar to Google’s popular Circle to Search, according to CEO Aravind Srinivas. He announced on X that the functionality would be ‘coming soon’ to all Android users, though specific details remain unclear.

A demo video shared by Srinivas showed how users can highlight text in conversations with Perplexity and request further information.

In the demo, a user circled a mention of Roger Federer and asked about his net worth, prompting Perplexity to fetch details from the web. However, since Google has trademarked ‘Circle to Search’, Perplexity may need a different name for its version.

Perplexity has been gaining popularity as an AI-powered search assistant, with some users preferring it over Google’s Gemini. The company recently introduced an AI-driven web browser called Comet, though it remains uncertain whether it will expand beyond smartphones to platforms like Windows and macOS.

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AI-generated Ghibli-style images overwhelm OpenAI servers

OpenAI has imposed temporary rate limits on image generation using its latest GPT-4o model after an online surge in Studio Ghibli-inspired images strained its servers.

The move follows the company’s decision to restrict free users from generating images with the new model due to overwhelming demand. OpenAI’s CEO, Sam Altman, said the rapid increase in image requests was pushing the company’s server capacity, joking that it could be ‘melting’ GPUs.

The restrictions are aimed at optimising system efficiency, with OpenAI working on fine-tuning performance. While some ChatGPT users may experience denied requests, Altman assured that the limitations should be lifted soon.

Free users will eventually regain the ability to generate up to three images per day, but no timeline has been provided.

Despite the restrictions, the internet remains flooded with AI-generated images in the distinctive art style of Studio Ghibli, known for films like My Neighbor Totoro.

The GPT-4o model has proven highly effective at recreating detailed scenes in various artistic styles, further fuelling the trend. The viral phenomenon has also sparked discussions on copyright, fair use, and AI’s role in digital art.

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CoreWeave scales back IPO with lower share price

CoreWeave, the Nvidia-backed AI infrastructure company, has reduced the size of its US initial public offering (IPO) and priced its shares below the initial range, raising concerns over investor interest in AI infrastructure.

The company will offer 37.5 million shares, 23.5% fewer than originally planned, with shares priced at $40 each, well below the lower end of the expected price range.

Despite strong backing from Nvidia, which committed to a $250 million order, the IPO has faced a tepid reception due to concerns about CoreWeave’s long-term growth and capital-intensive business model.

Investors have expressed worries over the company’s reliance on Microsoft’s shifting AI strategy, which could affect demand for its GPU chips. Additionally, CoreWeave’s high debt levels and lack of profitability have raised doubts about its financial sustainability.

The reduced IPO comes at a time when the US IPO market is struggling, with fewer equity deals and lower transaction values in 2024 compared to last year.

CoreWeave’s stock market debut, once seen as a test for the AI infrastructure market, now signals waning investor confidence in AI companies, especially those without a proven profit history.

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US airlines struggle as travel demand drops

Just months after predicting a booming future, US airlines are now grappling with economic uncertainty as rising tariffs and government spending cuts dampen travel demand. Consumers and businesses are cutting back on trips, forcing major carriers to lower profit forecasts for the first quarter.

The industry’s outlook for the rest of the year has also dimmed as fears of slow economic growth and high inflation persist.

The S&P 500 passenger airlines index has fallen 15% this year, with stocks of major carriers like Delta and United dropping around 20%. With demand slowing, airlines have begun reducing flight schedules to avoid fare cuts and protect profit margins.

Several airlines, including Delta, United, and American Airlines, have trimmed their April-to-June capacity, while United’s CEO has warned of further cuts if demand does not recover by late summer.

Adding to the industry’s woes, concerns over airline safety have surged, contributing to the travel slowdown. Meanwhile, US consumer confidence has plunged to a four-year low, and airfares posted their first year-on-year decline in six months.

While airlines remain hopeful that full-year earnings targets will hold, sustained weak demand during the peak summer season could force further adjustments.

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AI chip production to benefit from Rapidus and Quest Global alliance

Japanese chipmaker Rapidus Corporation has announced a strategic partnership with Singapore-based engineering firm Quest Global to develop advanced artificial intelligence semiconductors.

The collaboration focuses on producing low-power, high-performance chips using cutting-edge 2-nanometre technology.

Quest Global will support Rapidus and its clients by designing these next-generation AI chips.

The partnership is also expected to expand Rapidus’s customer reach by tapping into Quest Global’s broad international client base, enabling both companies to deliver new products to established and emerging markets.

Rapidus aims to begin pilot production of the new chips in April at a new facility under construction in Hokkaido, Japan, with mass production planned for 2027.

The move forms part of Japan’s broader effort to revitalise its semiconductor industry amid increasing global supply chain concerns.

Founded in 2022 with investment from major Japanese firms including Toyota and Sony, Rapidus was created to strengthen domestic chip manufacturing and reduce reliance on foreign suppliers in an era of growing geopolitical uncertainty.

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ECB warns Euro zone banks on geopolitical risks

Euro zone banks must remain resilient and prepared for geopolitical shocks, including the risk of liquidity drying up amid volatile financial markets, according to Claudia Buch, the European Central Bank’s supervisory chief.

She highlighted concerns about the potential impact of policy reversals by the US government, particularly under President Donald Trump, which have unsettled investors and created uncertainty about future growth and stability.

Buch also pointed to the ongoing financial and political pressures arising from Russia’s war in Ukraine and the sanctions that followed.

She emphasised the need for banks to maintain sufficient capital, robust governance, and effective risk management systems in the face of potential asset quality deterioration and economic disruptions caused by geopolitical conflicts or sanctions.

Additionally, Buch noted the increasing threat of cybersecurity attacks, which have become more frequent and severe. The ECB’s annual report warned that geopolitical risks could strain liquidity and funding, particularly in foreign currencies, leading to higher borrowing costs and increased use of credit lines.

Buch called for progress in creating a crisis management and deposit insurance framework to protect depositors in the event of bank failures.

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China faces Nvidia chip shortages

Chinese server manufacturer H3C has warned of potential shortages of Nvidia’s H20 chip, the most advanced AI processor still legally available in the country under US export controls.

In a notice to clients, the company revealed that its stock of H20 chips was nearly depleted, citing geopolitical tensions as a major factor affecting global supply chains.

New shipments are expected by mid-April, but future availability remains uncertain due to ongoing trade restrictions and supply disruptions.

The demand for H20 chips has surged, particularly as companies race to integrate AI models developed by Chinese startup DeepSeek.

Major tech firms such as Tencent, Alibaba, and ByteDance have significantly increased their orders, leading to further strain on supply.

H3C stated that future chip distribution will prioritise long-term, high-margin customers under a profit-first approach, raising concerns among smaller buyers about access to the critical technology.

The H20 was introduced after the US tightened export controls on high-performance AI chips in October 2023, blocking Nvidia’s most advanced processors from the Chinese market.

Washington has restricted such exports since 2022, citing national security concerns over China’s potential military applications of AI technology.

Despite these measures, Nvidia has reportedly shipped around one million H20 units in 2024, generating more than $12 billion in revenue. Meanwhile, domestic alternatives from Huawei and Cambricon are emerging as potential substitutes amid the ongoing supply crunch.

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