Senator Warren urges stricter AI chip controls on China

Senator Elizabeth Warren has called for tougher restrictions on Chinese technology, urging President Donald Trump’s nominee for a key trade role to reinforce AI chip controls.

In a letter to Jeffrey Kessler, the nominee for the Commerce Department’s Bureau of Industry and Security, Warren cited concerns over Chinese startup DeepSeek and its AI advancements. She argued for tighter enforcement of export restrictions and measures to curb chip smuggling.

Chinese firms like Huawei and SMIC, already on the US Entity List, continue to acquire American technology through front companies, Warren warned.

She pressed Kessler to address this issue and determine whether these companies violated US laws by producing advanced chips using American technology. Strengthened controls on ChangXin Memory Technology and high-powered inference chips, such as Nvidia’s H20, were also among her recommendations.

Kessler, who previously served as the Commerce Department’s top trade enforcement official, acknowledged China‘s progress in cutting-edge technology. His confirmation hearing before the Senate Banking Committee is set to examine how the US can maintain its technological edge while enforcing export restrictions effectively.

The debate comes amid ongoing tensions over AI and semiconductor technology between Washington and Beijing.

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Apple unveils age verification tech amid legal debates

Apple has rolled out a new feature called ‘age assurance’ to help protect children’s privacy while using apps. The technology allows parents to input their child’s age when setting up an account without disclosing sensitive information like birthdays or government IDs. Instead, parents can share a general ‘age range’ with app developers, putting them in control of what data is shared.

This move comes amid growing pressure from US lawmakers, including those in Utah and South Carolina, who are considering age-verification laws for social media apps. Apple has expressed concerns about collecting sensitive personal data for such verifications, arguing it would require users to hand over unnecessary details for apps that don’t require it.

The age assurance tool allows parents to maintain control over their children’s data while limiting what third parties can access. Meta, which has supported legislation for app stores to verify children’s ages, welcomed the new tech as a step in the right direction, though it raised concerns about its practical implementation.

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Alexa revamped by Amazon with advanced conversational AI

Amazon has unveiled Alexa+, a major upgrade to its voice assistant, integrating advanced AI to enhance interactions.

The new version can process multiple prompts in sequence, store user preferences, and manage tasks such as making reservations and sending reminders. AI-powered improvements aim to make Alexa more conversational and responsive.

The company has invested heavily in the technology, incorporating AI models through its Bedrock platform. Startup Anthropic contributed to development, with its Claude AI underpinning Alexa+.

The service will be free for Amazon Prime members, while non-Prime users will pay $19.99 per month. A phased rollout begins in March.

Alexa+ will integrate seamlessly with Amazon devices, including Ring doorbells, allowing users to access video recordings and control smart home features. It can also analyse documents, helping users understand contracts and regulations.

Industry competition remains strong, with Apple and Google also enhancing their voice assistants through AI.

Amazon hopes the overhaul will boost engagement, as Alexa usage had declined due to limited advancements. The company’s stock rose 1.7% following the announcement, reflecting investor confidence in the AI-driven update.

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Nokia’s $2.3 billion Infinera deal approved by EU

The European Commission has approved Nokia’s $2.3 billion acquisition of US-based Infinera, confirming the deal raises no competition concerns.

The approval was granted unconditionally, as the combined company will hold only a moderate share of the optical transport equipment market.

Nokia’s takeover of Infinera, announced last June, will make it the second-largest player in optical networking with a 20% market share, trailing Huawei.

Western firms have struggled to compete in China, giving Huawei a dominant position in the sector.

The acquisition is expected to boost Nokia’s ability to sell networking equipment to major tech firms such as Amazon, Alphabet, and Microsoft. These companies are expanding their data centre infrastructure to support the growing demand for AI services.

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UK unveils crime bill to tackle crypto-related crime

The UK government has introduced the Crime and Policing Bill, aiming to enhance its ability to recover proceeds from cryptocurrency-related crime. The bill sets out provisions for valuing cryptocurrency, establishes procedures for courts to recover illicit funds, and expands powers for the Crown Court to issue seizure orders. It addresses various criminal issues, including anti-social behaviour, sexual offences, and terrorism, with a specific focus on confiscating criminal assets tied to cryptocurrencies.

The legislation will grant the Crown Court additional authority to manage and confiscate money, cryptocurrency, and personal property in criminal cases. Provisions within the bill also introduce measures for the destruction of seized cryptocurrency, ensuring that the market value at the time of destruction is taken into account, with adjustments made for any changes in value.

The bill further amends existing laws, replacing magistrates’ courts with the Crown Court in handling cryptocurrency assets. These updates aim to streamline the management of confiscation orders, ensuring that cryptocurrencies can be more effectively seized, valued, and recovered in cases involving criminal activity.

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Blackwell AI chip rollout fuels Nvidia’s revenue surge

Nvidia has forecast strong growth for the first quarter, reinforcing confidence in the booming demand for AI chips. Orders for the company’s new Blackwell semiconductors were described as ‘amazing’, with CEO Jensen Huang stating that AI is advancing rapidly.

Investors had raised concerns last month after Chinese startup DeepSeek claimed to have developed cost-efficient AI models, but Nvidia’s results eased doubts.

Shares initially rose before fluctuating in extended trading, continuing a trend that has seen Nvidia’s stock surge over 400% in two years. The company generated $11 billion in revenue from Blackwell-related products in the fourth quarter, accounting for around half of its total data centre revenue.

Analysts had expressed scepticism about the transition to Blackwell and competition from DeepSeek, but the latest figures reassured investors.

Margins remain under pressure, with Nvidia forecasting a slight drop to 71% in the first quarter, below Wall Street estimates. Chief Financial Officer Colette Kress expects a recovery later in the year as production scales up and costs decline.

Despite some concerns about oversupply in AI infrastructure, Chinese firms have reportedly increased orders for Nvidia’s H20 AI chip, further supporting demand.

Nvidia’s fourth-quarter revenue rose 78% to $39.3 billion, surpassing expectations. Data centre sales surged 93% to $35.6 billion, continuing strong growth from the previous quarter.

Investors remain focused on Nvidia’s ability to maintain momentum in a competitive AI landscape, particularly as tech giants like Microsoft and Meta commit substantial investments to AI expansion.

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New AI release from Alibaba intensifies competition in video generation

Alibaba has made its AI model Wan 2.1 publicly available, enhancing competition in video and image generation. The move aligns with growing interest in open-source AI, following the recent rise of cost-effective models from firms such as DeepSeek.

The company introduced four variants of Wan 2.1, capable of generating images and videos from text and image input. Each model supports varying levels of complexity, with the most advanced handling 14 billion parameters for improved accuracy.

Users worldwide can now access these models through Alibaba Cloud’s ModelScope and Hugging Face platforms.

In January, the company unveiled an upgraded version of its AI model, later rebranded as Wan, with a focus on generating highly realistic visuals. The model has achieved top rankings on VBench, a leaderboard assessing video generative AI capabilities.

A preview of Alibaba’s reasoning model, QwQ-Max, was also released, with plans for an open-source launch.

The firm announced a $52 billion investment in cloud computing and AI infrastructure over the next three years. The commitment highlights its long-term focus on advancing AI and maintaining a competitive edge in the rapidly evolving sector.

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Google loses European court battle over Android Auto access

Europe’s top court has ruled that Google’s decision to block an Enel e-mobility app from Android Auto could be considered an abuse of market power. The judgment reinforces competition rules and may push major tech firms to allow easier access for rival apps.

The case stemmed from a €102 million fine imposed by Italy’s antitrust authority in 2021 for restricting access to Enel’s JuicePass app.

Google challenged the penalty, arguing security concerns and the absence of a specific app template. However, the Court of Justice of the European Union backed the Italian regulator, stating that dominant companies must ensure interoperability unless valid security risks exist.

The court clarified that companies should develop necessary templates within a reasonable timeframe.

Although Google has since introduced the requested feature, the ruling may set a precedent for similar cases. Legal experts see it as aligning with EU competition law, citing past decisions against IBM and Microsoft.

The ruling also supports the objectives of the Digital Markets Act, which aims to regulate dominant digital platforms.

The decision is final and unappealable, meaning the Italian Council of State must now rule on Google’s appeal in line with the court’s findings.

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Italy demands 12.5 million euros from X over tax probe

Italy is demanding 12.5 million euros ($13 million) from Elon Musk’s social network X following a tax probe linked to a broader investigation into Meta. The case, which focuses on value-added tax (VAT) claims for the years 2016 to 2022, is significant as it raises questions about how social networks provide access to their services. Italian tax authorities argue that user registrations on platforms like X, Facebook, and Instagram should be considered taxable transactions, as they involve the exchange of personal data for a membership account.

This case could have major implications for the tech sector in Europe, potentially altering the way business models are structured in the 27-nation European Union, as VAT is a harmonised EU tax. Although the claim of 12.5 million euros is a small amount for X, the outcome of this case could influence future tax policies across the region. Both X and Meta must respond to the tax authority’s observations by late March or early April, with the option to either accept the charges or challenge them in court.

The investigation also comes at a sensitive time, as US President Donald Trump has criticised digital taxes in countries like Italy that target US tech firms. Musk, who has strong ties with Italian Prime Minister Giorgia Meloni, is also keen to expand his Starlink business in the country. If no agreement is reached, Italy’s Revenue Agency may pursue a lengthy judicial review, which could take up to 10 years to resolve.

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Google faces lawsuit over AI search impact on publishers

An online education company has filed a lawsuit against Google, claiming its AI-generated search overviews are damaging digital publishing.

Chegg alleges the technology reduces demand for original content by keeping users on Google’s platform, ultimately eroding financial incentives for publishers. The company warns this could lead to a weaker online information ecosystem.

Chegg, which provides textbook rentals and homework help, says Google’s AI features have contributed to a drop in traffic and subscribers.

As a result, the company is considering a sale or a move to go private. Chegg’s CEO Nathan Schultz argues Google is profiting from the company’s content without proper compensation, threatening the future of quality educational resources.

A Google spokesperson rejected the claims, insisting AI overviews enhance search and create more opportunities for content discovery. The company maintains that search traffic remains strong, with billions of clicks sent to websites daily.

However, Chegg argues that Google’s dominance in online search allows it to pressure publishers into providing data for AI summaries, leading to fewer visitors to original sites.

The lawsuit marks the first time an individual company has accused Google of antitrust violations over AI-generated search features. A similar case was previously filed on behalf of the news industry. A US judge overseeing another case involving Google’s search monopoly is handling this lawsuit as well.

Google intends to challenge the claims and is appealing a previous ruling that found it held an illegal monopoly in online search.

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