Competition regulation

OpenAI turns ChatGPT into AI gateway

OpenAI plans to reinvent ChatGPT as an all-in-one ‘super assistant’ that knows its users and becomes their primary gateway to the internet.

Details emerged from a partly redacted internal strategy document shared during the US government’s antitrust case against Google.

Rather than limiting ChatGPT to existing apps and websites, OpenAI envisions a future where the assistant supports everyday life—from suggesting recipes at home to taking notes at work or guiding users while travelling.

The company says the AI should evolve into a reliable, emotionally intelligent helper capable of handling a various personal and professional tasks.

OpenAI also believes hardware will be key to this transformation. It recently acquired io, a start-up founded by former Apple designer Jony Ive, for $6.4 billion to develop AI-powered devices.

The company’s strategy outlines how upcoming models like o2 and o3, alongside tools like multimodality and generative user interfaces, could make ChatGPT capable of taking meaningful action instead of simply offering responses.

The document also reveals OpenAI’s intention to back a regulation requiring tech platforms to allow users to set ChatGPT as their default assistant. Confident in its fast growth, research lead, and independence from ads, the company aims to maintain its advantage through bold decisions, speed, and self-disruption.

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Google to appeal US ruling in search monopoly case

Google has announced plans to appeal a ruling that found it guilty of anti-competitive practices in the online search market, as the tech giant faces mounting pressure from US regulators to restructure its business.

The company said Saturday it ‘strongly believes the Court’s original decision was wrong’ and will challenge the ruling on appeal.

However, this follows a hearing on Friday in which the US Department of Justice proposed sweeping remedies that could force Google to divest from its Chrome browser and end exclusive agreements with smartphone manufacturers that pre-install Google Search by default.

The government also wants the company to share the data it uses to generate search results on Chrome, a move Google criticised as giving Washington the power to determine who receives access to user data.

The Justice Department’s proposals are part of a broader effort to curb what it sees as Google’s abuse of its dominant position in the search market, which it argues has stifled competition and harmed consumers.

But Google has pushed back, saying the remedies would benefit wealthy competitors like Microsoft’s Bing rather than improve users outcome. Instead, the company has suggested more limited actions, such as letting phone makers pre-install its Play Store without requiring Chrome or Google Search.

The judge’s final decision on penalties is expected by August, marking the end of one of the most significant antitrust cases against a major tech firm in over a decade.

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DeepSeek claims its new AI rivals top global models

Chinese AI start-up DeepSeek has announced a major upgrade to its R1 model, stating that the new version, R1-0528, now matches the performance of top-tier models from global giants like OpenAI and Google.

Unveiled on Thursday, the upgraded model brings notable improvements in reasoning and creative writing, allowing it to generate argumentative essays, fiction, and prose with a style said to be close to human authors.

DeepSeek also reported enhanced coding capabilities, positioning the model as a more versatile tool for both technical and literary applications.

The original R1 model debuted in January. With the R1-0528 update, DeepSeek appears to be accelerating its efforts to compete with established Western AI developers in both domestic and international markets.

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Chinese tech firms thrive amid US curbs

Nvidia CEO Jensen Huang has raised concerns that US export restrictions are accelerating the growth of Chinese AI firms, making them more competitive. In a recent interview, Huang highlighted that companies like Huawei — long blacklisted by the US — have become ‘formidable’ rivals.

The restrictions have hit Nvidia hard, with the company projecting an $8 billion revenue loss this quarter due to the limited access to the Chinese market, historically its largest for chips. The Biden administration’s AI diffusion rule, aimed at controlling the spread of advanced AI technologies, had already drawn criticism from Huang before being partially rolled back by the Trump administration in May.

Yet, Nvidia still faces tough restrictions, including a ban on selling even its downgraded H20 chip to China. The company was recently notified that it would need a special license to export the chip, leaving it with no viable alternative for the Chinese market.

Huang warned that efforts to keep cutting-edge AI tech out of China have largely backfired, as Chinese firms are finding workarounds and quickly catching up.

‘They’re doubling or quadrupling capabilities every year,’ he noted, stressing that the performance of Huawei’s latest AI chip now rivals Nvidia’s once-leading H200.

Despite Nvidia’s strong recent performance, Huang emphasised the long-term importance of re-engaging with China, home to the world’s largest community of AI researchers. He urged US policymakers to reconsider their approach, advocating for broader access to American AI technology to maintain leadership and influence in the global AI ecosystem.

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The future of search: Personalised AI and the privacy crossroads

The rise of personalised AI is poised to radically reshape how we interact with technology, with search engines evolving into intelligent agents that not only retrieve information but also understand and act on our behalf. No longer just a list of links, search is merging into chatbots and AI agents that synthesise information from across the web to deliver tailored answers.

Google and OpenAI have already begun this shift, with services like AI Overview and ChatGPT Search leading a trend that analysts say could cut traditional search volume by 25% by 2026. That transformation is driven by the AI industry’s hunger for personal data.

To offer highly customised responses and assistance, AI systems require in-depth profiles of their users, encompassing everything from dietary preferences to political beliefs. The deeper the personalisation, the greater the privacy risks.

OpenAI, for example, envisions a ‘super assistant’ capable of managing nearly every aspect of your digital life, fed by detailed knowledge of your past interactions, habits, and preferences. Google and Meta are pursuing similar paths, with Mark Zuckerberg even imagining AI therapists and friends that recall your social context better than you do.

As these tools become more capable, they also grow more invasive. Wearable, always-on AI devices equipped with microphones and cameras are on the horizon, signalling an era of ambient data collection.

AI assistants won’t just help answer questions—they’ll book vacations, buy gifts, and even manage your calendar. But with these conveniences comes unprecedented access to our most intimate data, raising serious concerns over surveillance and manipulation.

Policymakers are struggling to keep up. Without a comprehensive federal privacy law, the US relies on a patchwork of state laws and limited federal oversight. Proposals to regulate data sharing, such as forcing Google to hand over user search histories to competitors like OpenAI and Meta, risk compounding the problem unless strict safeguards are enacted.

As AI becomes the new gatekeeper to the internet, regulators face a daunting task: enabling innovation while ensuring that the AI-powered future doesn’t come at the expense of our privacy.

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Europe cracks down on Shein for misleading consumers

The European Commission and national consumer protection authorities have determined that online fashion giant Shein is in breach of six EU consumer laws, giving the company one month to bring its practices into compliance.

Announced today, the findings from the European Commission mark the latest in a string of regulatory actions against e-commerce platforms based in China, as the EU intensifies efforts to hold international marketplaces accountable for deceptive practices and unsafe goods.

Michael McGrath, the commissioner for consumer protection, stated: ‘We will not shy away from holding e-commerce platforms to account, regardless of where they are based.’

The investigation, launched in February, identified violations such as fake discounts, high-pressure sales tactics, misleading product labelling, and hidden customer service contact details.

Authorities are also examining whether Shein’s product ranking and review systems mislead consumers, as well as the platform’s contractual terms with third-party sellers.

Shein responded by saying it is working ‘constructively’ with authorities and remains committed to addressing concerns raised during the investigation.

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Pakistan aims to become global crypto and AI leader

Pakistan has set aside 2,000 megawatts of electricity in a major push to power Bitcoin mining and AI data centres, marking the start of a wider national digital strategy.

Led by the Pakistan Crypto Council (PCC), a body under the Ministry of Finance, this initiative aims to monetise surplus energy instead of wasting it, while attracting foreign investment, creating jobs, and generating much-needed revenue.

Bilal Bin Saqib, CEO of the PCC, stated that with proper regulation and transparency, Pakistan can transform into a global powerhouse for crypto and AI.

By redirecting underused power capacity, particularly from plants operating below potential, Pakistan seeks to convert a longstanding liability into a high-value asset, earning foreign currency through digital services and even storing Bitcoin in a national wallet.

Global firms have already shown interest, following recent visits from international miners and data centre operators.

Pakistan’s location — bridging Asia, the Middle East, and Europe — coupled with low energy costs and ample land, positions it as a competitive alternative to regional tech hubs like India and Singapore.

The arrival of the Africa-2 subsea cable has further boosted digital connectivity and resilience, strengthening the case for domestic AI infrastructure.

It is just the beginning of a multi-stage rollout. Plans include using renewable energy sources like wind, solar, and hydropower, while tax incentives and strategic partnerships are expected to follow.

With over 40 million crypto users and increasing digital literacy, Pakistan aims to emerge not just as a destination for digital infrastructure but as a sovereign leader in Web3, AI, and blockchain innovation.

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AI hallucination at center of Anthropic copyright lawsuit

Anthropic, the AI company behind the Claude chatbot, has been ordered by a federal judge to respond to allegations that it submitted fabricated material—possibly generated by AI—as part of its defense in an ongoing copyright lawsuit.

The lawsuit, filed in October 2023 by music publishers Universal Music Group, Concord, and ABKCO, accuses Anthropic of unlawfully using lyrics from over 500 songs to train its chatbot. The publishers argue that Claude can produce copyrighted material when prompted, such as lyrics from Don McLean’s American Pie.

During a court hearing on Tuesday in California, the publishers’ attorney claimed that an Anthropic data scientist cited a nonexistent academic article from The American Statistician journal to support the argument that Claude rarely outputs copyrighted lyrics.

One of the article’s alleged authors later confirmed the paper was a ‘complete fabrication.’ The judge is now requiring Anthropic to formally address the incident in court.

The company, founded in 2021, is backed by major investors including Amazon, Google, and Sam Bankman-Fried, the disgraced crypto executive convicted of fraud in 2023.

The case marks a significant test of how AI companies handle copyrighted content, and how courts respond when AI-generated material is used in legal proceedings.

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Apple opens NFC chip, PayPal taps into it

PayPal has launched its tap-to-pay feature for iPhone users in Germany, allowing contactless payments at terminals that support Mastercard.

The rollout follows pressure from the European Union under the Digital Markets Act, which forced Apple to open up its NFC chip to third-party apps.

Currently, the feature is exclusive to iPhones and does not support Apple Watch. It mirrors earlier moves by other apps like Norway’s Vipps, which began using Apple’s newly accessible NFC hardware late last year.

Apple has also started expanding NFC access globally, enabling developers to integrate in-app payments and allowing businesses to accept contactless payments via iPhones using third-party apps like Venmo and PayPal Zettle.

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US scraps Biden AI chip export rule

The US Department of Commerce has scrapped the Biden administration’s Artificial Intelligence Diffusion Rule just days before it was due to come into force.

Introduced in January, the rule would have restricted the export of US-made AI chips to many countries for the first time, while reinforcing existing controls.

Rather than enforcing broad restrictions, the Department now intends to pursue direct negotiations with individual countries.

The original rule divided the world into three tiers, with countries like Japan and South Korea spared restrictions, middle-tier countries such as Mexico and Portugal facing new limits, and nations like China and Russia subject to tighter controls.

According to Bloomberg, a replacement rule is expected at a later date.

Instead of issuing immediate new regulations, officials released industry guidance warning companies against using Huawei’s Ascend AI chips and highlighted the risks of allowing US chips to train AI in China.

Secretary Jeffrey Kessler criticised the Biden-era policy, promising a ‘bold, inclusive’ AI strategy that works with allies while limiting access for adversaries.

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