Adobe has launched the first public version of its AI-powered video generation tool, Firefly Video Model, introducing competition to OpenAI’s Sora and Runway’s video-generation services. The tool is designed to integrate with Adobe’s Premiere Pro software, making it useful for film and television professionals. Instead of focusing on generating long video clips, Adobe’s model helps improve or extend real production shots that need adjustments.
The tool currently produces five-second clips at 1080p resolution, shorter than OpenAI’s 20-second limit, but Adobe argues that most production clips are only a few seconds long. Pricing starts at $9.99 for 20 clips per month and $29.99 for 70 clips, with a separate ‘Premium’ plan for high-volume users like studios to be announced later this year. Adobe is also working on 4K video generation, prioritising visual quality over longer clips.
Vice President of Generative AI Alexandru Costin emphasised that Adobe aims to make AI-generated video look as realistic as traditional filming. The company remains focused on improving motion, structure, and image quality rather than extending clip duration. Meta Platforms is also developing a video-generation model, but has not yet confirmed a release date.
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The recent AI Action Summit in Paris marked a turning point in global AI governance, shifting the focus from long-term existential risks to immediate concerns such as innovation, economic impact, and public good. Unlike previous AI summits in Bletchley and Seoul, which prioritised safety regulations, Paris embraced a more pragmatic approach, emphasising competition, national sovereignty, and AI’s role in society.
The resulting Paris Statement reflected this shift, downplaying AI safety concerns in favour of fostering open-source models, job creation, and consumer protection. As highlighted in the blog titled ‘The Paris AI Summit: A Diplomatic Failure or a Strategic Success?’ by Jovan Kurbalija, a major theme of the summit was the need to counterbalance the dominance of large tech corporations in shaping AI policy.
US Vice-President Vance criticised calls for strict safety regulations, arguing they often serve the interests of major AI companies rather than the public. The Paris Statement also reinforced AI sovereignty, urging nations to develop AI strategies aligned with their own frameworks rather than adhering to a universal regulatory model. Additionally, France used the summit to highlight its own advancements in AI, mainly through the open-source Mistral model.
Despite these achievements, the absence of US and UK support underscored geopolitical tensions in AI governance. The US remains wary of multilateral AI regulations that could challenge its technological leadership, while the UK, having invested heavily in AI safety initiatives, found the summit’s shift in focus at odds with its strategic goals. British Prime Minister Rishi Sunak’s decision to skip the event further signalled the country’s discomfort with this new direction.
Why does it matter?
Ultimately, the Paris Summit may not have produced a sweeping declaration, but it succeeded in redefining the global AI agenda. The summit laid the groundwork for a more inclusive and action-oriented approach by moving past theoretical risks and addressing AI’s real-world implications. Whether this shift will gain broader international support remains to be seen, but it is clear that Paris has opened a new chapter in AI diplomacy.
Germany‘s Federal Cartel Office has expressed concerns over Apple’s App Tracking Transparency (ATT) feature, which could potentially violate antitrust rules for large tech companies. The regulator’s preliminary findings come after a detailed three-year investigation into the feature, which allows iPhone users to block advertisers from tracking their activities across multiple apps. The investigation is part of broader scrutiny over the influence of major tech companies on the digital advertising ecosystem.
In a statement released on Thursday, the Federal Cartel Office noted that Apple now has the opportunity to respond to the allegations. The authority’s concerns focus on whether ATT unfairly impacts the business models of other companies that rely on data-driven advertising, such as Meta Platforms, app developers, and startups. These businesses argue that the feature could severely limit their ability to target users with personalised ads, affecting their revenue generation strategies.
Apple has defended ATT as a crucial privacy tool that empowers users to have more control over their data. The company argues that the feature helps to protect user privacy by giving individuals the option to block third-party tracking. However, its critics, particularly in the advertising industry, contend that ATT has created an uneven playing field, disadvantaging businesses that depend on targeted advertising. The outcome of this investigation could have significant implications for Apple’s business practices in Europe.
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Thomson Reuters has won a legal battle against Ross Intelligence, after a judge ruled that the law firm’s use of Thomson Reuters’ legal content to train an AI model violated US copyright laws. The case stems from a 2020 lawsuit where Thomson Reuters accused the now-defunct legal research firm of using its Westlaw platform to build a competing AI system without permission.
Judge Stephanos Bibas confirmed that Ross Intelligence’s use of the content did not qualify as “fair use” under US copyright law, which permits limited use of copyrighted material for purposes such as teaching or research. Thomson Reuters expressed satisfaction with the ruling, stating that copying its content for AI training was not a fair use.
This case is part of a broader trend of legal challenges involving AI and copyright issues, with authors, artists, and music labels filing similar lawsuits against AI developers for using their works without compensation. These cases all involve the claim that tech companies have used vast amounts of human-created content to train AI models, raising concerns about intellectual property rights and the ethics of AI development.
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The Dutch government plans to cut bureaucracy and increase investment in artificial intelligence to help the country’s tech startups thrive, Prime Minister Dick Schoof announced. His comments follow a report by TechLeap, which revealed a sharp decline in small firms securing significant funding. Despite a 47% increase in venture capital investment in 2024, the number of Dutch startups receiving more than €100,000 fell dramatically, with most funding coming from foreign investors.
Schoof, speaking at TechLeap’s annual event in The Hague, stressed the urgency of creating a business-friendly environment to attract venture capital. He warned that Europe risks being left behind by the US and China if immediate action is not taken. Eindhoven, home to chip giant ASML, has been a key driver of the Dutch economy, but the slowdown in startup growth raises concerns about long-term innovation.
Two Dutch firms, hotel software developer Mews and AI-powered auditing company DataSnipper, achieved unicorn status last year, but industry leaders remain cautious. With the government now vowing to intervene, the hope is that streamlined regulations and targeted investments will help revive the country’s startup ecosystem.
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Google has announced a new partnership with Poland, signing a memorandum of understanding aimed at accelerating the adoption of AI in the country. The agreement was revealed by CEO Sundar Pichai during a news conference on Thursday. Through this collaboration, Google and Poland seek to use AI as a tool to drive economic growth and innovation, focusing on areas that include cybersecurity, health, and energy.
The deal highlights the potential for AI to transform key sectors of the economy, with both parties eager to explore new opportunities. Pichai emphasised how AI could help bolster cybersecurity measures, improve healthcare delivery, and increase energy efficiency in Poland, which would have far-reaching implications not just for the country but for the broader European region. These sectors, in particular, are seen as critical for future development, and the use of AI could significantly enhance Poland’s technological capabilities.
This partnership also underscores Google’s growing commitment to global AI initiatives, as the company continues to collaborate with governments and organisations around the world to implement AI-driven solutions. Poland is positioning itself as an important player in Europe’s AI landscape, and this agreement represents a step forward in its efforts to modernise and compete on a global scale in the rapidly evolving tech space.
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Reddit is set to overhaul its search functionality in 2025 by integrating AI-powered features to help users find better answers to complex and subjective questions. CEO Steve Huffman announced that the company will incorporate Reddit Answers, a tool that summarises discussions and highlights key responses, into its existing search system.
The company is also forming a dedicated team of engineers to refine and expand these AI-driven search capabilities. This move follows Reddit’s broader AI strategy, which has already introduced translation tools and AI-powered insights for advertisers. The platform has also experimented with AI-curated search result pages to improve content discovery across different communities.
Despite these advancements, Reddit’s latest earnings report disappointed investors, with daily active users reaching 101.7 million falling short of expectations. Huffman suggested that making search an integral part of user onboarding could help boost engagement and monetisation, positioning AI-powered search as a key driver of Reddit’s future growth.
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Elon Musk announced on Thursday that his AI chatbot, Grok 3, is nearing completion and will be released in the next week or two. In a video call at the World Governments Summit in Dubai, Musk stated that Grok 3 exhibits powerful reasoning capabilities, outperforming other AI models in tests conducted so far. This new AI is being developed through Musk’s company, xAI, which he founded to rival OpenAI and Google.
Musk, also a co-founder of OpenAI, has been outspoken in his criticism of the AI startup. Recently, a consortium led by Musk made a $97.4 billion offer to acquire OpenAI’s nonprofit assets, a move that comes amid Musk’s ongoing legal battle with OpenAI. He is challenging the company’s decision to transition to a for-profit model, arguing that it undermines its original nonprofit mission.
In addition to discussing AI, Musk shared his thoughts on reducing US government spending, suggesting that $1 trillion could be saved by cutting inefficiencies. He also spoke on international matters, advising the US to be less involved in other countries’ affairs. Musk’s comments followed a partnership announcement with UAE AI Minister Omar Al Olama on a futuristic underground transport system called the “Dubai Loop.”
Musk’s remarks at the summit highlighted his wide-ranging influence, not only in technology but also in global political and economic discussions.
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China’s chipmaking equipment purchases are expected to decline in 2025, following three years of growth, due to overcapacity and increasing restrictions from US sanctions. After purchasing $41 billion in equipment in 2024, which accounted for 40% of global sales, China’s spending is predicted to fall by 6% to $38 billion this year, marking the first decline since 2021. The drop in demand is attributed to reduced purchases in response to export controls and an excess of manufacturing capacity.
Despite these challenges, China has been a key driver for the global wafer fabrication equipment market over the past few years, even as other sectors saw downturns. Much of China’s equipment buying has been linked to stockpiling efforts in response to US sanctions aimed at limiting China’s ability to produce advanced chips, particularly for military use. Chinese firms, like SMIC and Huawei, have continued to advance in chip production, although at a higher cost and with more effort, while also focusing on expanding in the mature-node chip market.
In addition to growing its domestic production capabilities, China’s leading equipment manufacturers, such as Naura Technology Group and AMEC, are expanding internationally. However, the country still faces significant challenges in self-sufficiency, particularly in areas like lithography systems, testing, and assembly tools. While China’s domestic companies have made strides in equipment sales, they still rely heavily on foreign suppliers for advanced technology in these areas.
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Apple has partnered with Chinese tech giant Alibaba to develop AI features for iPhones in China, aiming to bolster its presence in a highly competitive market. The collaboration follows months of uncertainty over Apple’s AI strategy in the country, where rivals like Huawei have already integrated AI tools into their devices. The move marks a shift from Apple’s earlier preference for Baidu, which reportedly fell short of the company’s expectations.
The partnership could help Apple regain lost ground after a decline in iPhone sales during the holiday season, a period typically strong for the company. The AI-powered features have been submitted for regulatory approval in China, a crucial step before their rollout. Apple’s stock saw a 1.5% rise following the news, while Alibaba’s US-listed shares gained 2.6%.
Apple’s decision to work with Alibaba was reportedly influenced by the e-commerce giant’s vast datasets on user shopping and payment habits, which could enhance AI model training and improve personalised services. As Apple anticipates strong sales growth in the current quarter, this partnership could play a key role in driving renewed demand for iPhones in China.
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