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FERC calls for clearer rules on co-located data centres

US energy regulators have ordered the country’s largest grid operator to clarify how it manages co-located data centres, a growing trend allowing facilities to connect directly to power plants.

The Federal Energy Regulatory Commission (FERC) directed PJM Interconnection to explain why its current rules are sufficient or propose updates within 30 days.

Tech firms, facing long waits for electricity connections, see co-location as a faster alternative to accessing large amounts of power. However, FERC believes the lack of clear guidelines makes it difficult for companies to navigate the process effectively.

Commissioner David Rosner highlighted the urgency, citing PJM’s forecast of 30 gigawatts of added peak load within five years—equivalent to powering an entire city the size of Philadelphia.

Constellation Energy recently filed a complaint against PJM, arguing that unclear regulations have allowed utilities to block data centre projects at nuclear facilities.

FERC’s intervention aims to ensure fair and transparent policies as electricity demand continues to surge.

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Brazil slaps X with $1.42 million fine for noncompliance

Brazil‘s Supreme Court Justice Alexandre de Moraes has fined social media platform X, owned by Elon Musk, 8.1 million reais ($1.42 million) for failing to comply with judicial orders. The ruling, made public on Thursday, follows a legal case from 2023 where the court had instructed X to remove a profile spreading misinformation and provide the user’s registration data.

X’s failure to meet these demands resulted in a daily fine of 100,000 reais, and the company’s local legal representative faced potential criminal liability. The court order required the immediate payment of the fine, citing the platform’s noncompliance. X’s legal team in Brazil has not commented on the matter.

In 2024, X faced a month-long suspension in Brazil for not adhering to court orders related to hate speech moderation and for failing to designate a legal representative in the country, as mandated by law.

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AI adoption surges as OpenAI passes 400 million users

OpenAI’s weekly active users exceeded 400 million in February, marking significant growth in AI adoption. The company had 300 million weekly users in December, and its paid business subscribers have more than doubled since September, surpassing 2 million.

Competition in the AI space remains intense, with China’s DeepSeek claiming its new model can rival or outperform Western alternatives at a lower cost.

Surging demand has led to service outages for the startup, while questions persist about its access to Nvidia’s H800 chips despite US export restrictions.

OpenAI also reported a sharp increase in developer traffic for its AI models, with usage of its latest o3 model rising fivefold since its January launch.

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China’s tech giants take on US rivals in stock market surge

Chinese tech stocks are experiencing a major surge, inspiring catchy nicknames as they rival the United Stat e s ‘Magnificent Seven’ tech giants. Driven by excitement around AI startup DeepSeek and perceived state backing following President Xi Jinping’s meeting with business leaders like Alibaba founder Jack Ma, the Hong Kong market has climbed significantly.

The Hang Seng index now ranks among the best-performing major markets this year, with leading firms stepping into the spotlight.

Brokerages have dubbed rising Chinese companies the ‘Seven Sisters,’ likely emerging from sectors like AI, chip-making, and high-end manufacturing. Companies such as Tencent, Alibaba, Xiaomi, and BYD are top contenders.

Another group, the ‘Terrific Ten,’ has also gained attention, with firms like JD.com, Geely, Baidu, and SMIC included, boosting the Hang Seng Tech index by nearly 70% over the past year—outpacing Nasdaq’s 27% gain.

The rivalry pits China‘s rising stars against the US ‘Magnificent Seven,’ a term coined by Bank of America, representing giants like Apple, Meta, and Nvidia.

Meanwhile, UBS has identified eight AI-driven Chinese stocks as the ‘VENUS Eight,’ and DeepSeek features among the ‘Little Dragon’ startups in Hangzhou, signalling China’s growing tech ambitions in the global market.

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STMicroelectronics unveils new AI chip for data centres

STMicroelectronics has announced the launch of a new computer chip aimed at the rapidly expanding AI data centre market. Developed in collaboration with Amazon Web Services (AWS), the photonics chip uses light rather than electricity, which helps increase speed and reduce power consumption in AI data centres. These chips are expected to be used in transceivers, which are crucial components in data centre infrastructure.

As top US software companies plan to invest $500 billion into AI infrastructure, there is rising demand for specialised chips, not only for computing but also for memory, power, and communications applications. ST’s new chip targets the communications sector, with a focus on improving the efficiency of transceivers, which are essential in AI data centres. The company also has a collaboration agreement with AWS to deploy this technology in their infrastructure later this year.

ST is working with a leading provider of optical solutions, although the company’s name has not been disclosed, to integrate the new chip into next-generation transceivers. The market for such devices, valued at $7 billion in 2024, is expected to grow significantly, reaching $24 billion by 2030. ST will begin mass production of these chips at its facility in Crolles, France.

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AI chip boom drives Lam Research’s latest tool innovations

Lam Research has introduced two new chipmaking tools designed to support the growing demand for advanced AI semiconductors. The company unveiled ALTUS Halo, a deposition tool that applies molybdenum layers to chips, enhancing their performance and enabling further scaling for next-generation devices.

Micron Technology has already adopted the tool, bringing molybdenum into mass production, according to executive Mark Kiehlbauch.

Alongside ALTUS Halo, Lam launched Akara, an etching tool that removes excess material from semiconductor wafers, creating precise chip structures essential for complex AI applications.

These innovations position Lam to compete with major players in wafer fabrication equipment, including Applied Materials, ASML, and KLA Corp.

As AI-driven semiconductor demand surges, major clients like Micron, Samsung Electronics, and Taiwan Semiconductor Manufacturing Co (TSMC) are relying on advanced manufacturing tools.

TSMC executive Y.J. Mii highlighted the need for innovative solutions to develop more powerful chip architectures. In January, Lam reported a strong third-quarter revenue forecast, signalling positive growth amid the AI chip boom.

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iPhone 16e launches as Apple’s $599 budget option

Apple has unveiled the iPhone 16e, a budget-friendly smartphone priced at $599, aimed at mid-market customers in key regions such as China and India.

The launch marks Apple’s attempt to revitalise declining sales and better compete with Android rivals like Samsung and Huawei, which are also adding artificial intelligence tools to their devices.

Designed as a successor to the SE series, the iPhone 16e incorporates features closer to flagship models, including the A18 chip for AI functions powered by Apple Intelligence.

Though missing a wide-angle lens and a camera control button, the 16e sports a 48-megapixel dual-camera system, a 6.1-inch display, and Apple’s Face ID. It also introduces the C1 chip, the company’s first in-house modem for cellular connectivity.

The iPhone 16e, available only in black and white, costs $200 less than the base iPhone 16. Analysts believe it will appeal to cost-sensitive markets where upfront payments are common. Pre-orders open on February 21 across 59 countries, with shipping set to begin on 28 February.

Apple forecasts stronger sales growth as it integrates AI features into more regions, although adoption has been slow. The 16e may provide a cost-effective entry point for customers seeking Apple’s latest technology without the premium price.

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TikTok lays off staff in trust and safety restructuring

TikTok is reportedly laying off staff from its trust and safety unit, which is responsible for content moderation, as part of a restructuring effort. The layoffs began on Thursday, affecting teams in Asia, Europe, the Middle East, and Africa. Adam Presser, TikTok’s operations head, sent a memo to staff informing them of the decision, though the company has not yet commented on the move.

The layoffs come at a time when TikTok’s future is uncertain. The app, used by nearly half of all Americans, faced a brief outage last month, followed by a law that came into effect in January, requiring its Chinese owner ByteDance to either sell TikTok or face a national security-related ban. TikTok CEO Shou Chew had previously testified before Congress about the company’s trust and safety measures, pledging to invest more than $2 billion in these efforts.

In line with a shift towards AI-driven content moderation, TikTok had already made significant layoffs in October, including staff in Malaysia. The company currently employs 40,000 trust and safety professionals globally, but the full scope of the recent cuts remains unclear.

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Google unveils virtual AI collaborator for scientists

Google has introduced an AI tool designed to act as a virtual collaborator for biomedical researchers. Tested by Stanford University and Imperial College London, the tool helps scientists analyse large volumes of literature and generate new hypotheses. It uses advanced reasoning to streamline research processes and assist in problem-solving.

DeepMind, Google’s AI unit, has prioritised science in its innovations. The unit’s leader, Demis Hassabis, recently shared a Nobel Prize in Chemistry for groundbreaking AI technology. In an experiment addressing liver fibrosis, the AI tool proposed promising solutions, showing potential to improve expert-generated approaches over time.

The system is not intended to replace scientists but to enhance their work. Google stated that the tool could accelerate scientific advancements, offering new possibilities for tackling complex challenges. Researchers involved in the project highlighted its role in fostering collaboration, rather than diminishing it.

Experts see this development as part of a growing trend in using AI across various industries. Successes like ChatGPT have demonstrated AI’s ability to support tasks ranging from customer service to legal research.

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Gemini AI now requires separate app on iOS

Google has removed its AI assistant, Gemini, from the main Google app on iOS, encouraging users to download the standalone Gemini app instead. The change, announced via an email to customers, is seen as a strategic move to position Gemini as a direct competitor to AI chatbots like ChatGPT and Claude.

The dedicated Gemini app allows users to interact with the AI assistant through voice and text, integrate it with Google services like Search and YouTube, and access advanced features such as AI-generated summaries and image creation. Those who attempt to use Gemini in the main Google app will now see a message directing them to the App Store.

While the shift may enable Google to roll out new AI features more efficiently, it also risks reducing Gemini’s reach, as some users may not be inclined to download a separate app. The company is also promoting its Google One AI Premium plan through the Gemini app, offering access to its more advanced capabilities.

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