SpaceX plans to boost FAA networks with Starlink

SpaceX is preparing to deploy its Starlink satellite internet terminals to enhance the information technology networks that support the United States Federal Aviation Administration’s (FAA) national airspace system, according to Bloomberg News.

The move is expected to improve connectivity and speed within the FAA’s complex network, which manages the vast and busy American airspace.

Reliable satellite internet could also help modernise outdated network components and reduce disruptions in air traffic control services.

Starlink, known for its global satellite coverage and high-speed internet capabilities, has been expanding its commercial and governmental partnerships.

The collaboration with the FAA highlights Starlink’s growing role in critical infrastructure, pushing SpaceX further into sectors where reliable connectivity is essential.

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Analyst flags potential slowdown in Microsoft’s data centre expansion

Microsoft has reportedly scrapped leases for significant data centre capacity in the United States, raising concerns about a potential slowdown in its AI infrastructure expansion.

TD Cowen analysts revealed that the company cancelled leases amounting to “a couple of hundred megawatts” with at least two private data-centre operators. The move has added weight to investor worries that the AI-driven market surge may be losing momentum.

Despite the lease cancellations, Microsoft maintains its commitment to invest over $80 billion in AI and cloud capacity this fiscal year.

A company spokesperson confirmed the investment plan remains intact, noting that adjustments to infrastructure are part of strategic planning rather than a broader scale-back.

While Microsoft’s stock dipped by 1%, related companies faced steeper declines. Siemens Energy and Schneider Electric saw losses of 7% and 4% respectively, while US utility firms Constellation Energy and Vistra dropped nearly 6% each.

Analysts suggest the lease cancellations might reflect a shift in Microsoft’s data centre strategy following years of aggressive expansion to meet AI demand.

Supply chain constraints had previously forced the company to secure excess capacity, sometimes at premium rates.

However, with growing investor scepticism around the costs of AI infrastructure and emerging competition from low-cost Chinese firms like DeepSeek, Microsoft’s recalibration has intensified concerns about the long-term sustainability of the AI boom.

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AI demand surge drives increased Nvidia H20 chip orders from Chinese firms

Chinese companies are significantly increasing orders for Nvidia’s H20 artificial intelligence chip due to soaring demand for DeepSeek’s low-cost AI models.

The surge, reported for the first time, highlights Nvidia’s dominance in the market and alleviates concerns that DeepSeek’s emergence might weaken AI chip demand.

Major technology firms Tencent, Alibaba, and ByteDance have substantially raised their purchases of the H20 chip, which was specifically developed for China following US export restrictions.

These companies not only use advanced AI chips internally but also offer cloud services that enable other businesses to access AI tools. Smaller firms in sectors like healthcare and education are also adopting AI servers equipped with DeepSeek models and Nvidia H20 chips.

DeepSeek’s AI models rival Western alternatives while offering significantly lower costs by focusing on inference rather than raw processing power.

While potential US restrictions on H20 chip exports could be a factor in increased orders, sources attribute the demand spike primarily to DeepSeek’s expanding role in the AI market. Nvidia has not disclosed order volumes but stated its products succeed on merit in a competitive field.

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Italy and UAE to strengthen ties with $40 billion deal

The United Arab Emirates (UAE) is set to make a significant $40 billion investment in Italy, covering sectors such as energy, technology, and defence. This follows the first-ever state visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan to Italy. The investment will span various projects, including data centres, AI, renewable energy, and subsea activities.

Italian Prime Minister Giorgia Meloni emphasised that this partnership will strengthen bilateral relations, with a focus on mutual economic growth and collaboration. The investment aligns with the Mattei plan, aimed at boosting African development and reducing migrant arrivals to Italy. One notable project involves transporting electricity through an undersea cable between Italy, Albania, and the UAE, further enhancing regional cooperation.

In addition to economic and energy initiatives, both nations agreed to ramp up defence and security collaborations, including joint military production, cybersecurity, counter-terrorism, and disaster response efforts. The partnership will also support advanced research and development, contributing to sustainable development and digital growth.

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Indonesia and Apple close deal to end iPhone 16 ban

Indonesia and Apple have reportedly reached an agreement to lift the country’s ban on iPhone 16s, with a potential deal expected to be signed this week. The ban was imposed in October after Apple failed to meet the requirement that smartphones sold in Indonesia must include at least 35% locally-made parts.

As part of the agreement, Apple will invest $1 billion into a manufacturing plant in Indonesia, focused on producing components for smartphones and other products. Additionally, Apple will commit to training local workers in research and development, expanding beyond its existing Apple academies. However, Apple has no immediate plans to begin iPhone production in the country.

Neither Apple nor Indonesia’s Ministry for Industry have responded to requests for comment on the matter.

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EU court sides with Italy in Google antitrust case

The European Court of Justice has backed Italy‘s antitrust authority in a ruling against Google, stating that the tech giant’s refusal to allow Enel’s JuicePass app to work with its Android Auto platform could constitute an abuse of market power. This decision supports a 2021 fine of 102 million euros imposed by the Italian watchdog after Google blocked the e-mobility app. Google had argued that the refusal was due to security concerns and the absence of a specific template for compatibility, but the court disagreed, stating that dominant companies must ensure their platforms are interoperable with third-party apps unless doing so would harm security.

Although Google has since resolved the issue, the ruling sets a precedent for future cases involving platform dominance. The court acknowledged that companies could refuse interoperability if it compromises platform security, but if this is not the case, they must develop a compatible template in a reasonable timeframe. Google claimed the feature was only relevant to a small percentage of cars in Italy at the time, but the ruling now forces the company to comply with the antitrust decision. The case is final and cannot be appealed, and the Italian Council of State will follow the court’s guidance in its future ruling.

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Cryptocurrency sector unites after Bybit hack

Following the recent security breach at Bybit, major cryptocurrency firms have joined forces to combat the attack and mitigate its impact. Bybit’s CEO, Ben Zhou, confirmed that both centralised and decentralised finance leaders, such as Orbiter and SynFutures, quickly moved to blacklist the attacker’s addresses. Chainalysis also tracked and published wallet addresses linked to the exploit.

Blockchain security companies, including SIS and Zero Shadows, intensified efforts to block malicious transactions and trace the perpetrators, while institutional traders such as TMSI and Cumberland provided support to stabilise the market. Several DeFi protocols, including Lido Finance and Solana Foundation, also extended their assistance.

Zhou praised the swift collaboration from industry players, calling it a testament to the cryptocurrency sector’s resilience. The exchange has since launched a recovery bounty programme, offering up to 10% of recovered funds. Bybit is working hard to enhance its security infrastructure following the breach.

Investigations have pointed to North Korea’s Lazarus Group as the likely culprit behind the attack, which exploited Bybit’s Ethereum multisig cold wallet. This group is also connected to other high-profile crypto hacks, including the 2022 DMM Bitcoin exchange breach.

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Hackers steal $1.5 billion in largest-ever crypto heist

Hackers have stolen $1.5 billion from Dubai-based cryptocurrency exchange Bybit in what is believed to be the largest digital heist in history. The attacker gained access to an Ethereum wallet during a routine transfer and moved the funds to an unknown address, sparking concerns across the cryptocurrency sector.

Bybit quickly reassured users that their funds remained secure, with chief executive Ben Zhou pledging to fully compensate affected customers. Despite this, the platform saw a surge of over 350,000 withdrawal requests, leading to potential delays. The company remains solvent, holding $20 billion in customer assets and is prepared to cover losses if necessary.

The price of Ethereum briefly dipped by nearly 4% following the breach but has since stabilised. Bybit has called upon leading cybersecurity experts to assist in recovering the stolen assets, offering a reward of up to $140 million. Speculation has emerged regarding the hackers’ identity, with reports suggesting possible links to the North Korean state-sponsored Lazarus group known for previous large-scale cryptocurrency thefts.

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Musk faces growing competition in satellite internet

Elon Musk’s Starlink network is facing increasing competition in the satellite internet market, particularly from SpaceSail, a Shanghai-based company backed by the Chinese government, and Amazon’s Project Kuiper. SpaceSail is expanding rapidly, having entered Brazil in November and begun operations in Kazakhstan by January. Meanwhile, Brazil is also in talks with Project Kuiper and Canada’s Telesat to diversify its options for providing high-speed internet to remote areas.

SpaceSail plans to launch 648 low Earth orbit (LEO) satellites this year, with the ambition of deploying up to 15,000 by 2030. This move aims to compete directly with Starlink, which currently operates around 7,000 satellites but plans to increase its constellation to 42,000 by the end of the decade. China’s push into satellite internet is part of its broader strategy to dominate space and digital technologies, which has raised concerns among Western governments, particularly regarding Beijing’s potential to extend its censorship and surveillance reach globally.

China’s rapid expansion in satellite technology, supported by state funding and military research, has intensified. It has launched 263 LEO satellites in the past year alone, and researchers are focusing on low-latency systems to compete with Starlink’s capabilities. The Chinese government is also exploring ways to track and monitor satellite constellations, potentially targeting Starlink as a strategic competitor.

As competition in the satellite internet sector intensifies, particularly between the US, China, and other players like Brazil, the geopolitical and military implications of these space technologies are becoming clearer. With nations striving to secure positions in space, experts warn of an increasingly complex and competitive environment.

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UK users face reduced cloud security as Apple responds to government pressure

Apple has withdrawn its Advanced Data Protection (ADP) feature for cloud backups in Britain, citing government requirements.

Users attempting to enable the encryption service now receive an error message, while existing users will eventually have to deactivate it. The move weakens iCloud security in the country, allowing authorities access to data that would otherwise be encrypted.

Experts warn that the change compromises user privacy and exposes data to potential cyber threats. Apple has insisted it will not create a backdoor for encrypted services, as doing so would increase security risks.

The UK government has not confirmed whether it issued a Technical Capability Notice, which could mandate such access.

Apple’s decision highlights ongoing tensions between tech companies and governments over encryption policies. Similar legal frameworks exist in countries like Australia, raising concerns that other nations could follow suit.

Security advocates argue that strong encryption is essential for protecting user privacy and safeguarding sensitive information from cybercriminals.

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