Poland pushes ahead with tech tax despite US criticism

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.

For more information on these topics, visit diplomacy.edu.

US takes aim at Google’s web browser amid legal fight

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.

Google has criticised the proposals, claiming they would harm consumers and national security, and is preparing an appeal against the ruling.

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.

For more information on these topics, visit diplomacy.edu.

iFlyTek looks to Europe after US trade restrictions impact supply chain

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.

For more information on these topics, visit diplomacy.edu.

Labour probe launched into Scale AI’s pay and working conditions

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.

For more information on these topics, visit diplomacy.edu.

Indonesia approves Apple’s local content certificates

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.

Last year, the country had banned iPhone 16 sales due to non-compliance with local content rules.

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.

For more information on these topics, visit diplomacy.edu.

XR headset from Samsung to challenge Apple Vision Pro

Samsung’s upcoming XR headset is expected to feature a 4K micro-OLED display from Sony, according to recent reports.

The 1.35-inch screen is slightly smaller than Apple’s Vision Pro but offers a higher resolution and a wider colour gamut.

The Vision Pro has struggled to gain mass appeal due to its high price, leaving space for rivals to introduce alternatives.

Samsung’s device is likely to be positioned as a direct competitor, offering premium features at a potentially more accessible price point.

Other companies are also preparing to challenge Apple in the XR space. Sony’s high-end model is already available, and Meta is reportedly expanding its Quest lineup. Samsung has hinted at additional smart glasses, though details remain scarce.

Apple may respond with an updated Vision Pro, adding to the competition in the XR market. With several key players developing new headsets, 2025 could be a defining year for immersive technology.

For more information on these topics, visit diplomacy.edu.

Malaysia works with US and Singapore on Nvidia chip probe

Malaysian authorities are investigating whether local laws were breached in the shipment of servers that may have contained advanced AI chips subject to U export controls.

The case is linked to a fraud investigation in Singapore, where three men were recently charged over transactions involving servers supplied by US firms. The equipment was allegedly transferred to Malaysia and may have included Nvidia’s artificial intelligence chips.

The Malaysian government confirmed it is working closely with the United States and Singapore to determine whether US-sanctioned chips were involved. Authorities aim to find effective measures to prevent such transactions from violating trade regulations.

Singapore has not specified whether the chips in question fall under US export restrictions but acknowledged they were used in servers that passed through Malaysia.

US officials are also examining whether DeepSeek, a Chinese AI firm whose technology gained attention in January, has been using restricted US chips.

Washington has tightened controls on AI chip exports to China, and any unauthorised shipments could lead to further scrutiny of supply chains in the region.

For more information on these topics, visit diplomacy.edu.

Musk’s bid to halt OpenAI’s for-profit transition rejected

A US court has denied Elon Musk’s request for a preliminary injunction against OpenAI’s transition into a for-profit organisation.

US District Judge Yvonne Gonzalez Rogers ruled that Musk did not meet the high standards required to block the move. However, the judge indicated that she would expedite a trial on the matter, which is expected to take place later this year.

Musk, who co-founded OpenAI in 2015 but left before its major success, argued that OpenAI had initially sought his charitable funding to create AI for the public good, but has since shifted its focus towards making profits.

His lawyer, Marc Toberoff, expressed satisfaction that the judge had agreed to a swift trial, claiming that the case involves urgent public interest concerns.

OpenAI, which is seeking to become a for-profit entity to attract the necessary capital for its AI projects, welcomed the court’s decision.

The company emphasised that its goal is to develop advanced AI models to benefit society. Musk’s legal action, which also includes antitrust claims, stems from his frustration with OpenAI’s shift in direction since he departed from the organisation.

For more information on these topics, visit diplomacy.edu.

UK regulator approves Synopsys’ $35 billion Ansys deal

Britain’s competition regulator has approved Synopsys’ $35 billion acquisition of Ansys after the companies addressed concerns about the potential negative impact on innovation and pricing.

In December, the regulator raised alarms that the deal could reduce competition in the chip design software market, possibly leading to higher prices and less innovation.

However, following negotiations and the companies’ offer of remedies to mitigate these concerns, the regulator decided not to refer the deal for an in-depth phase-2 investigation.

Synopsys, a major player in the chip design software industry, announced the acquisition in January. The deal, which will be a mix of cash and stock, aims to strengthen Synopsys’ portfolio and expand its offerings in the design and development of complex products.

Ansys, a well-established provider of simulation software, is used by a range of industries, from aerospace to sports equipment, to design and optimise products like aeroplanes and tennis rackets.

The acquisition marks a significant move for Synopsys, enhancing its capabilities in the design and development of advanced technology.

The deal is expected to bring together the strengths of both companies, allowing them to offer a broader set of solutions to customers in various sectors, from semiconductor manufacturing to engineering and consumer goods.

For more information on these topics, visit diplomacy.edu.

Trump pushes for end to $52 billion semiconductor subsidy

Donald Trump has called for the repeal of the CHIPS and Science Act, a key piece of legislation passed in 2022 to support semiconductor manufacturing in the US.

Trump criticised the law during a speech to Congress, describing it as a waste of hundreds of billions of dollars and suggesting the funds should instead be used to reduce national debt. His remarks mark his most forceful criticism of the act to date.

The CHIPS Act, signed by President Joe Biden, allocated $39 billion in subsidies for US semiconductor production and related industries, along with $75 billion in government-backed loans.

The initiative was part of a broader strategy to reduce reliance on foreign-made chips and address national security concerns.

Trump argued that rather than offering financial incentives, the government could avoid imposing tariffs to encourage semiconductor companies to build factories in the US.

However, the program has garnered support from officials, including Commerce Secretary Gina Raimondo, who played a key role in securing investments from leading global semiconductor firms like Samsung, Intel, and TSMC.

New York Governor Kathy Hochul defended the CHIPS Act, emphasising its role in bringing significant investment and job creation to the state, including Micron’s $100 billion investment in Central New York.

Trump’s comments have raised concerns about the future of these grants and the potential impact on such developments.

For more information on these topics, visit diplomacy.edu.