Chinese startup Zhipu AI has secured 500 million yuan (£54.8 million) in funding from the state-owned Huafa Group, following a separate 1 billion yuan capital raise earlier this month.
Huafa Group, a government-backed conglomerate based in Zhuhai, Guangdong province, announced its investment as Chinese cities compete to support AI firms, a sector seen as critical in Beijing’s technological rivalry with the US.
The funding comes amid increasing competition in China’s AI industry, particularly with Hangzhou-backed DeepSeek, whose large language models have gained attention for their cost-effectiveness and performance against Western alternatives.
Zhipu AI, established in 2019 and recognised as one of China’s ‘AI tigers,’ has received investments from major tech firms including Tencent, Meituan, and Xiaomi. The startup was valued at 20 billion yuan (£2.2 billion) in a funding round last July, according to business registration platform Qichacha.
With the new funding, Zhipu AI aims to enhance technological innovation and further develop its GLM foundation model.
However, the company faces challenges on the international stage, having been added to the US Commerce Department’s export control list in January, restricting its access to American components.
Despite these hurdles, China continues to bolster its AI sector as it seeks to establish a leading position in global artificial intelligence development.
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The US Federal Trade Commission (FTC) announced on Wednesday that it does not need to delay its September trial against Amazon, contradicting an earlier claim by one of its attorneys about resource shortages.
Jonathan Cohen, an FTC lawyer, retracted his statement that cost-cutting measures had strained the agency’s ability to proceed, assuring the court that the FTC is fully prepared to litigate the case.
FTC Chairman Andrew Ferguson reaffirmed the agency’s commitment, dismissing concerns over budget constraints and stating that the FTC will not back down from taking on Big Tech.
Earlier in the day, Cohen had described a ‘dire resource situation,’ citing employee resignations, a hiring freeze, and restrictions on legal expenses. However, he later clarified that these challenges would not impact the case.
The lawsuit, filed in 2023, accuses Amazon of using ‘dark patterns’ to mislead consumers into enrolling in automatically renewing Prime subscriptions, a program with over 200 million users.
With claims exceeding $1 billion, the trial is expected to be a high-profile battle between regulators and one of the world’s largest tech companies. Amazon has denied any wrongdoing, and three of its senior executives are also named in the case.
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Spain’s government has approved a bill imposing heavy fines on companies that fail to label AI-generated content, aiming to combat the spread of deepfakes.
The legislation, which aligns with the European Union’s AI Act, classifies non-compliance as a serious offence, with penalties reaching up to €35 million or 7% of a company’s global revenue.
Digital Transformation Minister Oscar Lopez stressed that AI can be a force for good but also a tool for misinformation and threats to democracy.
The bill also bans manipulative AI techniques, such as subliminal messaging targeting vulnerable groups, and restricts the use of AI-driven biometric profiling, except in cases of national security.
Spain is one of the first EU nations to implement these strict AI regulations, going beyond the looser US approach, which relies on voluntary compliance.
A newly established AI supervisory agency, AESIA, will oversee enforcement, alongside sector-specific regulators handling privacy, financial markets, and law enforcement concerns.
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Eurozone finance ministers have raised concerns over the United States’ shift towards embracing cryptocurrencies, warning that it could pose risks to Europe’s monetary sovereignty and financial stability.
The discussion follows President Donald Trump’s executive order to establish a strategic reserve of cryptocurrencies using government-owned tokens, signalling a major policy shift from the previous administration.
Officials stressed the importance of accelerating the European Central Bank‘s plans to launch a digital euro to maintain control over the region’s financial system.
The head of the European Stability Mechanism, Pierre Gramegna, warned that the United States stance could encourage major technology firms to relaunch digital payment systems using dollar-backed stablecoins, potentially challenging the euro’s dominance in the global financial system.
Eurozone leaders are concerned that a resurgence of stablecoin-based payment platforms could undermine the euro and increase reliance on US-backed digital assets.
Policymakers emphasised that Europe must take proactive steps to safeguard its financial autonomy, ensuring that the euro remains a strong and stable currency in an increasingly digital economy.
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India has repatriated nearly 300 of its citizens who were lured to Southeast Asian countries with fake job offers and forced into cybercrime and other fraudulent activities.
The rescue was coordinated by Indian embassies in Myanmar and Thailand, with an Indian Air Force aircraft bringing the workers back from Mae Sot in Thailand. Many had been trapped in scam centres along the Thailand-Myanmar border, where criminal networks operate large-scale online fraud schemes.
Authorities in Thailand have intensified their crackdown on these illegal operations, arresting 100 people last week. Countries including China and Indonesia have also been working to bring back their nationals who were similarly deceived.
According to the United Nations, criminal syndicates have trafficked hundreds of thousands of people to these centres, generating billions of dollars from online scams.
The government of India has warned its citizens against falling prey to fraudulent job offers and urged them to verify employers and recruitment agents before accepting positions abroad.
Officials continue to collaborate with international agencies to combat human trafficking and cyber fraud, aiming to prevent further exploitation of vulnerable workers.
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Poland’s deputy prime minister reaffirmed plans to introduce a new tax on big tech firms despite warnings from the incoming US ambassador, intensifying tensions between Warsaw and Washington. Deputy Prime Minister Krzysztof Gawkowski dismissed Ambassador Thomas Rose’s remarks as interference, calling it ‘sick’ for another country to dictate Poland’s legislation.
The dispute adds to growing friction between the two allies, fueled by a recent online clash involving US Secretary of State Marco Rubio, Elon Musk, and Polish Foreign Minister Radoslaw Sikorski over Poland’s funding of Ukraine’s Starlink services. Polish Prime Minister Donald Tusk also weighed in, cautioning against ‘arrogance’ from Poland’s allies.
While Gawkowski has not provided specifics on the proposed tax, he suggested it would target the profits of major tech companies operating in Poland and support local tech development. However, some within Poland’s coalition government question the timing, warning of potential trade consequences. Meanwhile, the nationalist opposition party Law and Justice (PiS) argues that the move risks straining relations with Washington.
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The US Department of Justice is maintaining its push for Google to sell its Chrome web browser as part of an ongoing antitrust case.
A recent court filing reaffirmed the department’s stance, arguing that Google’s dominance in online search has created an unfair advantage.
While earlier proposals called for divesting all AI investments, the DOJ is now only requiring prior notification of future deals.
Legal action follows a ruling by Judge Amit P. Mehta, who found that Google illegally maintained its search monopoly. The United States DOJ also seeks to prohibit payments to distribution partners, a key practice that has helped Google secure its search dominance.
Arguments from both sides will be heard in court this April. The case is expected to have far-reaching implications for competition in the tech industry, with potential changes to how Google operates its search and browser business.
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Chinese AI company iFlyTek is expanding its European operations as trade tensions with the US continue to escalate.
Vice President Vincent Zhan stated that North America remains the firm’s largest market outside China, but new tariffs introduced by United States President Donald Trump have made diversification a priority. The company is looking to reduce supply chain risks while strengthening its presence in Europe.
iFlyTek, known for its voice recognition technology, currently operates in France and Hungary and is planning to open a Paris office soon.
Future expansion targets include Spain and Italy, where the company is assessing partnerships. The firm unveiled a new tablet at the Mobile World Congress in Barcelona, highlighting its commitment to the European market.
The company has faced US restrictions since being placed on a trade blacklist in 2019, limiting access to American-made components such as Nvidia’s AI chips. In response, iFlyTek has turned to domestic alternatives, using Huawei chips and integrating AI models from Chinese start-ups like DeepSeek.
Despite these challenges, Zhan expressed confidence in China‘s growing AI chip industry, which is helping firms like iFlyTek stay competitive.
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The United States Department of Labor is investigating Scale AI, a data labeling startup backed by Nvidia, Amazon, and Meta, for its compliance with fair pay and working conditions under the Fair Labor Standards Act.
The inquiry began nearly a year ago during Joe Biden’s presidency, with officials examining whether the company meets federal labour regulations. Scale AI has been cooperating with the department to clarify its business practices and the evolving nature of the AI sector.
Founded in 2016, Scale AI plays a crucial role in training advanced AI models by providing accurately labeled data. The company also operates a platform where researchers exchange AI-related insights, with contributors spanning over 9,000 locations worldwide.
In response to the investigation, a company spokesperson stated that the majority of payments to contributors are made on time, with 90% of payment-related inquiries resolved within three days.
Valued at $14 billion following a late-stage funding round last year, Scale AI serves major clients such as OpenAI, Cohere, Microsoft, and Morgan Stanley.
The company insists that contributor feedback is overwhelmingly positive and maintains that it prioritises fair pay and support for its workforce.
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Indonesia has granted local content certificates for 20 Apple products, including the iPhone 16 after the company met requirements for locally-made components.
Apple still needs further approvals from the communications and trade ministries before it can officially sell the devices in the country.
The certification follows Apple’s recent pledge to invest over $300 million in Indonesia, including funding component manufacturing plants and a research and development centre.
Industry ministry spokesperson Febri Hendri Antoni Arief confirmed that Apple received certificates for 11 phone models and nine tablets.
However, negotiations had been ‘tricky’, according to Indonesia’s industry minister. Apple remains outside the top five smartphone brands in Indonesia, according to research firm Canalyst.
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