Samsung faces tough shareholder meeting over AI struggles

Samsung Electronics faces a challenging annual general meeting as shareholders express frustration over its failure to capitalise on the AI boom.

Despite being South Korea’s most valuable company, Samsung’s stock tumbled nearly a third last year, making it one of the worst-performing tech firms.

Executives, including Co-CEO Han Jong-hee, will address concerns over lagging innovation, competition in semiconductor technology, and strategies to counter US tariffs.

Internal discussions at Samsung have revealed concerns about losing its technological edge, particularly in high bandwidth memory (HBM) chips, where it trails rival SK Hynix.

Chairman Jay Y. Lee reportedly criticised the company for focusing on maintaining the status quo rather than driving major innovation.

A stagnation like this has contributed to Samsung losing market share to competitors like TSMC in chip manufacturing and Apple in smartphones.

Adding to its challenges, Samsung has warned of sluggish AI chip sales due to US export restrictions to China, its biggest market. This puts the company at greater risk from potential US tariffs on Chinese trade.

In an attempt to regain investor confidence, Samsung launched a $7.2 billion share buyback plan in November, which has helped its stock recover slightly. However, shareholders remain sceptical about its future growth strategy.

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Treasury eyes AI-driven future as IRS technology review begins

The US Internal Revenue Service (IRS) is pausing its technology modernisation efforts to evaluate the impact of AI on tax collection and operations, a senior official announced.

The review will include recent initiatives such as the Direct File system, which allows US taxpayers to submit returns for free. AI-driven advancements in customer service and data processing have raised questions about the agency’s long-term strategy.

As the Trump administration prepares for widespread staff reductions in federal agencies, a source familiar with IRS plans indicated that up to a quarter of the agency’s workforce could be cut.

The IRS has not confirmed specific numbers but acknowledged that changes in technology could lead to a realignment of staff. Treasury Secretary Scott Bessent has expressed confidence that AI will improve tax collection efficiency, though no official budget or workforce reduction targets have been set.

The pause reflects shifting priorities in IRS funding, which was originally bolstered by the 2022 Inflation Reduction Act. Republican lawmakers have pushed to reduce the agency’s modernisation budget, arguing that enhanced funding could lead to unnecessary audits.

Despite the pause, the IRS has assured taxpayers that the 2025 filing season will not be affected, with tax returns and refunds continuing as usual.

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BMW to equip cars with Huawei HiCar system

BMW will integrate Huawei’s HiCar system into its locally produced models starting in 2026, strengthening its presence in the Chinese market.

The partnership will enable seamless connectivity between Huawei devices and BMW vehicles, enhancing smart driving applications through the Harmony operating system.

The German automaker emphasised its commitment to deeper collaboration with Chinese partners, aiming to integrate them more closely into its global innovation network.

By working with local suppliers, BMW seeks to foster long-term cooperation and technological advancement in one of the world’s largest automotive markets.

An approach that aligns with BMW’s broader strategy of leveraging local expertise to remain competitive in a fast-evolving automotive landscape.

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Europe’s tech giants push for sovereign fund

More than 90 European technology companies and lobby groups, including Airbus and Dassault Systèmes, have called on European Commission President Ursula von der Leyen to establish a sovereign infrastructure fund.

In an open letter dated 14 March, they emphasised the urgent need for Europe to strengthen its strategic autonomy in critical digital infrastructure, from AI frameworks to semiconductor manufacturing.

The letter warns that Europe’s reliance on foreign technology creates security risks and weakens economic growth. It highlights the importance of public investment, particularly in capital-intensive sectors like quantum computing and microchips. The signatories also suggest a ‘buy European’ policy in government procurement to boost demand and encourage local businesses to invest.

Prominent supporters of the initiative include French cloud provider OVH Cloud, the European Software Institute, and the German AI Association. The appeal also reached EU tech chief Henna Virkkunen, as Europe faces increasing pressure to compete with major US and Asian technology powers.

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Baidu launches new AI models to compete in global race

Baidu has unveiled two new AI models, including ERNIE X1, which it claims matches the performance of DeepSeek R1 at half the cost. The company says X1 is a deep-thinking model capable of autonomous tool use, with enhanced reasoning, planning, and adaptability.

Meanwhile, Baidu’s latest foundation model, ERNIE 4.5, boasts improved multimodal capabilities, advanced language understanding, and a better grasp of satire and internet culture.

The Chinese tech giant has been striving to compete in the rapidly evolving AI landscape, where startups like DeepSeek have disrupted the industry with high-performing, cost-effective models. While Baidu was one of the first Chinese companies to launch a ChatGPT-style chatbot, its Ernie LLM has faced challenges in achieving widespread adoption.

With growing competition from domestic and international AI firms, Baidu aims to solidify its position through continuous innovation. The company’s latest advancements highlight the push for more sophisticated AI systems capable of processing diverse forms of data, including text, images, and audio, as China intensifies its efforts to lead in AI.

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Tech giant Oracle considers expanding cloud operations to Indonesia

Oracle is in discussions with the Indonesian government to establish a cloud services centre on Batam Island, according to sources familiar with the matter.

The island’s Nongsa Digital Park is being considered due to its free trade zone status and proximity to Singapore and Malaysia, where Oracle is already expanding its cloud operations.

The move aligns with Oracle’s broader strategy to strengthen its presence in Asia. In October, the company announced plans to invest over $6.5 billion in its first public cloud region in Malaysia.

The firm is also developing more data centres across the region, spanning from Japan to New Zealand and India.

Oracle currently operates two cloud facilities in Singapore and has 50 public cloud regions across 24 countries. Its ongoing expansion reflects the growing demand for cloud services in Southeast Asia, with Indonesia emerging as a key market for future investment.

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Chinese hedge funds boost AI for competitive edge

China’s hedge fund industry is undergoing a transformative shift, spurred by High-Flyer’s integration of AI in its trading strategies. The multi-billion-dollar fund not only uses AI to enhance its portfolio but also created DeepSeek, a game-changing LLM that has disrupted the dominance of Western AI firms like those in Silicon Valley.

The breakthrough has ignited an AI arms race among Chinese asset managers, including firms like Baiont Quant, Wizard Quant, and Mingshi Investment Management, as they rush to incorporate AI into their investment workflows.

AI-powered trading has gained momentum, with many hedge funds now using AI to process market data and generate trading signals based on investor risk profiles. As competition for “alpha” (outperformance) intensifies, the demand for AI talent is surging.

Companies like Wizard Quant and Mingshi are actively recruiting top AI engineers, and even mutual funds, such as China Merchants Fund, have adopted DeepSeek to boost their efficiency. The open-source model has democratised access to AI, lowering the entry barrier for smaller Chinese funds, which had previously been unable to compete with their Western counterparts due to high costs.

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China claims quantum supremacy with Zuchongzhi 3.0 chip

Chinese researchers have developed the Zuchongzhi 3.0, a quantum processor 1 quadrillion times faster than the world’s best supercomputers. The 105-qubit chip, created at the University of Science and Technology of China, achieved impressive results, completing a quantum task in mere seconds—1 million times faster than Google’s Sycamore chip.

A breakthrough like this marks a major step forward in quantum computing, especially with its enhancements in coherence time and quantum error correction. The processor’s transmon qubits, made from materials like tantalum and niobium, also show significant improvements in gate fidelity, leading to more accurate computations.

Despite these advancements, experts note that classical computing methods could still close the gap, as seen in past quantum supremacy claims.

Zuchongzhi 3.0’s exceptional performance paves the way for more practical quantum computing applications, promising a new era of solving complex real-world challenges. The progress made in quantum gate fidelity and reduced noise sensitivity places China’s quantum processing technology at the forefront of global developments.

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Microsoft backs renewables but acknowledges role of natural gas

Microsoft believes there is still significant room to expand wind and solar power to supply energy-hungry data centres, particularly in the Midwest wind corridor and the sunny southwest.

Bobby Hollis, Microsoft‘s Vice President of Energy, told Reuters at the CERAWeek energy conference that the company remains committed to renewables but acknowledges the challenges of intermittency in wind and solar power.

The rapid expansion of AI and cloud technology is driving record electricity demand, raising concerns about whether renewables can keep up or if gas-fired power will become a fallback.

Microsoft, which has pledged to be carbon-negative by 2030, is investing $80 billion in data centre expansion this year alone. Hollis said the company aims to maximise renewable energy but noted that natural gas may be necessary in some cases.

The central United States region, with strong and consistent winds, offers major potential for wind-powered data centres, while solar energy could expand further in the sun-rich southeast.

Microsoft has already procured more than 30 gigawatts of renewable energy worldwide and continues to push for greater renewable integration before resorting to fossil fuels.

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Intel appoints new CEO to compete in AI chip market

Intel has appointed tech industry veteran Lip-Bu Tan as its chief executive, aiming to revitalise the struggling chipmaker as it falls behind in the AI race.

Tan, set to take over next week, told employees that overcoming Intel’s challenges would not be easy but reaffirmed his commitment to an engineering-first approach.

Following the announcement, Intel’s shares surged by more than 10 per cent in after-market trading.

Once a dominant force in the semiconductor industry, Intel has been outpaced by Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics, which lead in made-to-order chip production.

It also lags behind Nvidia, which has emerged as the top AI chip provider. Tan replaces Pat Gelsinger, who was ousted last year after the board lost confidence in his turnaround efforts, which included cutting 15,000 jobs and delaying chipmaking projects.

Tan, previously head of Cadence Design Systems, pledged to restore Intel’s reputation by taking calculated risks to outmanoeuvre competitors.

He intends to continue the company’s plan to manufacture chips for other firms, directly challenging TSMC. However, analysts remain cautious, questioning whether Intel will split its foundry and chip design businesses or prove its ability to deliver cutting-edge technology.

Intel also faces a growing battle in AI, where Nvidia dominates the data centre chip market. Analysts warn that without a compelling AI strategy, Intel could struggle to regain investor confidence.

Tan, however, remains optimistic, vowing to transform Intel into a world-class chipmaker while ensuring customer satisfaction.

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