Qualcomm’s interest in acquiring Intel has reportedly cooled due to the complexities involved in such a massive deal, according to Bloomberg. While a full acquisition now appears unlikely, Qualcomm may consider pursuing specific parts of Intel’s business or revisiting the idea in the future. Neither company has commented publicly on the report.
Qualcomm initially approached Intel in September, sparking speculation about a potential acquisition. Any deal would face significant antitrust scrutiny as it would unite two of the semiconductor industry’s biggest players. Qualcomm had previously explored acquiring sections of Intel’s design business, but no formal offer materialised.
Intel, once a dominant chipmaking powerhouse, has struggled in recent years, losing market share to competitors like TSMC and missing key opportunities in generative AI. The company’s declining fortunes have been reflected in a 50% drop in its stock price this year and its recent removal from the Dow Jones Industrial Average.
Intel’s expected $8.5 billion subsidy for expanding its United States chip manufacturing facilities is likely to be reduced, sources revealed. The grants, part of a broader semiconductor funding initiative under the CHIPS and Science Act, will still represent a significant investment but may drop below $8 billion. The adjustment is reportedly linked to Intel’s separate $3 billion Pentagon contract funded through the same programme.
The US government aims to bolster domestic semiconductor production through the CHIPS Act, allocating $52.7 billion overall, including $39 billion in subsidies. Intel’s planned projects in Arizona include building two new chip factories and upgrading an existing facility. Despite these efforts, Intel faces industry challenges, with slumping share prices and restructuring moves under CEO Pat Gelsinger.
Other companies, such as TSMC and GlobalFoundries, have also benefited from preliminary CHIPS Act agreements. Intel’s revised funding agreement is expected soon, with the US Commerce Department declining to comment on the final subsidy figure.
Nvidia CEO Jensen Huang reaffirmed the importance of global collaboration in technology during a visit to Hong Kong, even as potential United States policy shifts on export controls loom. Speaking to the media, Huang stressed that cooperation in science and technology underpins societal and scientific progress, a principle he believes will endure despite regulatory changes.
In a speech at the Hong Kong University of Science and Technology, Huang celebrated the transformative potential of AI, calling it ‘the most important technology of our time.’ He urged graduates to embrace the opportunities presented by a rapidly evolving industry and highlighted Nvidia‘s contributions to advancing AI and computing over the past 25 years.
Huang received an honorary doctorate at the event alongside other distinguished honourees, noting that the emerging era of AI offers a unique chance for young innovators to tackle global challenges and revolutionise industries.
AI is transforming daily life for visually impaired individuals like Louise Plunkett, who has Stargardt disease, a condition causing progressive vision loss. Apps like “Be My AI” use ChatGPT to generate detailed descriptions of images, helping users identify everyday items, read packaging, and navigate spaces. While Plunkett praises its convenience, she notes that its descriptions can sometimes be overly detailed.
Developed by the Danish firm Be My Eyes, the app initially relied on human volunteers to describe visual elements over video calls. Now, its AI-driven features are expanding, with users increasingly turning to it for tasks such as analysing WhatsApp images. The company envisions future applications like live-streamed AI assistance to describe surroundings in real time.
Other innovations include the AI-powered WeWalk cane, which offers navigation, obstacle detection, and public transit updates through voice commands. Advocates like Robin Spinks of the Royal National Institute of Blind People emphasise AI’s potential to revolutionise accessibility, offering tools that make life easier for those with vision impairments. Despite some skepticism, many find the technology invaluable.
Biotech startup Cradle has raised $73 million to expand its labs and team, aiming to make AI-powered protein design more accessible. Founded in 2022, the company uses language models to analyse proteins, often described as “an alien programming language,” to suggest modifications that improve functionality, such as heat resistance or manufacturability.
Cradle’s software has gained traction among biotech and pharmaceutical companies by reducing the time and cost of experimental rounds, which can be both expensive and unpredictable. Its simple SaaS model eliminates concerns about royalties or intellectual property, offering a streamlined approach compared to competitors that co-develop drugs or processes.
Despite being a software provider, Cradle maintains a laboratory in Amsterdam to validate protein designs and build datasets to refine its models. The latest funding, led by IVP with participation from Index Ventures and Kindred Capital, will support lab expansion and further hiring. CEO Stef van Grieken aims to scale Cradle’s tools to reach a million scientists worldwide.
Justin Sun, founder of the blockchain network Tron, has committed $30 million to World Liberty Financial (WLF), a project linked to US president-elect Donald Trump. In a social media post, Sun expressed his excitement about the partnership, calling it an important step for integrating blockchain technology with traditional financial services. While details on the project’s products remain scarce, its association with Trump has drawn significant attention.
WLF is in the process of launching its governance token, WLFI, with the Know Your Customer (KYC) verification open for accredited investors in the US and non-US persons. Trump had previously announced the opening of this verification process in October.
This investment comes amid Sun’s ongoing legal battle with the US Securities and Exchange Commission (SEC), which has filed a lawsuit accusing him of fraud, market manipulation, and unregistered securities sales. Despite the legal challenges, Sun continues to make high-profile moves in the business world, including his recent purchase of Maurizio Cattelan’s controversial artwork “Comedian” for $6.24 million.
Anthropic has unveiled the Model Context Protocol (MCP), an open-source standard designed to improve AI assistant performance by connecting them directly to data systems. MCP allows AI models to access diverse sources, such as business tools and development environments, enabling more relevant and context-aware responses. Developers can build two-way connections using MCP servers and clients, eliminating the need for fragmented custom integrations.
Major companies like Block and Apollo have already integrated MCP, and developers can start building with prebuilt servers for platforms like Google Drive and Slack. Subscribers to Anthropic’s Claude Enterprise can use MCP to link the Claude chatbot to internal systems. The company hopes MCP will encourage scalable, seamless AI implementations while fostering collaboration through open-source contributions.
Despite its promise, MCP faces competition from proprietary solutions, including OpenAI‘s app-connecting features. Anthropic‘s claims of improved AI functionality remain unverified, with no performance benchmarks currently available.
Chinese big tech companies have emerged as some of the most influential players in the global technology landscape, driving innovation and shaping industries across the board. These companies are deeply entrenched in everyday life in China, offering a wide range of services and products that span e-commerce, social media, gaming, cloud computing, ΑΙ, and telecommunications. Their influence is not confined to China, they also play a significant role in global markets, often competing directly with US tech giants.
The rivalry between China and the US has become one of the defining geopolitical struggles of the 21st century. This competition oscillates between cooperation, fierce competition, and confrontation, influenced by regulatory policies, national security concerns, and shifting political priorities. The geopolitical pendulum of China-US tech firms, totally independent from the US election outcome, reflects the broader tensions between the two powers, with profound implications for global tech industries, innovation, and market dynamics.
The Golden Shield Project
In 2000, under Chairman Jiang Zemin’s leadership, China launched the Golden Shield Project to control media and information flow within the country. The initiative aimed to safeguard national security and restrict the influence of Western propaganda. As part of the Golden Shield, many American tech giants such as Google, Facebook, and Netflix were blocked by the Great Firewall for not complying with China’s data regulations, while companies like Microsoft and LinkedIn were allowed to operate.
At the same time, China’s internet user base grew dramatically, reaching 800 million netizens by 2018, with 98% using mobile devices. This rapid expansion provided a fertile ground for Chinese tech firms, which thrived without significant competition from foreign players. Among the earliest beneficiaries of this system were the BATX companies, which capitalised on China’s evolving internet landscape and rapidly established a dominant presence in the market.
The powerhouses of Chinese tech
The major Chinese tech companies, often referred to as the Big Tech of China, include Alibaba Group, Tencent, Baidu, ByteDance, Huawei, Xiaomi, JD.com, Meituan, Pinduoduo, and Didi Chuxing.
Alibaba Group is a global e-commerce and technology conglomerate, operating platforms such as Taobao and Tmall for e-commerce, AliExpress for international retail, and Alipay for digital payments. The company also has significant investments in cloud computing with Alibaba Cloud and logistics.
Tencent, a massive tech conglomerate, is known for its social media and entertainment services. It owns WeChat, a widely used messaging app that offers payment services, social media features, and more. Tencent also has investments in gaming, owning major stakes in Riot Games, Epic Games, and Activision Blizzard, as well as interests in financial services and cloud computing.
Baidu, often called China’s Google, is a leading search engine provider. In addition to its search services, Baidu has a strong presence in AI development, autonomous driving, and cloud computing, particularly focusing on natural language processing and autonomous vehicles.
ByteDance, the company behind TikTok, has made a name for itself in short-form video content and AI-driven platforms. It also operates Douyin, the Chinese version of TikTok, along with Toutiao, a popular news aggregation platform. ByteDance has expanded into gaming, e-commerce, and other AI technologies.
Huawei is a global leader in telecommunications equipment and consumer electronics, particularly smartphones and 5G infrastructure. The company is deeply involved in cloud computing and AI, despite facing significant geopolitical challenges.
Xiaomi is a leading smartphone manufacturer that also produces smart home devices, wearables, and a wide range of consumer electronics. The company is growing rapidly in the Internet of Things (IoT) space and AI-driven products.
JD.com, one of China’s largest e-commerce platforms, operates similarly to Alibaba, focusing on direct sales, logistics, and tech solutions. JD.com has also made significant strides in robotics, AI, and logistics technology.
Meituan is best known for its food delivery and local services platform, offering everything from restaurant reservations to hotel bookings. The company also operates in sectors like bike-sharing, travel, and ride-hailing.
Pinduoduo has rapidly grown in e-commerce by focusing on group buying and social commerce, particularly targeting lower-tier cities and rural markets in China. The platform offers discounted products to users who buy in groups.
Didi Chuxing is China’s dominant ride-hailing service, offering various transportation services such as ride-hailing, car rentals, and autonomous driving technology.
But what are the BATX companies we mentioned earlier?
BAXT
The term BATX refers to a group of the four dominant Chinese tech companies: Baidu, Alibaba, Tencent, and Xiaomi. These companies are central to China’s technology landscape and are often compared to the US “FAANG” group (Facebook, Apple, Amazon, Netflix, Google) because of their major influence across a range of industries, including e-commerce, search engines, social media, gaming, ΑΙ and telecommunications. Together, BATX companies are key players in shaping China’s tech ecosystem and have a significant impact on global markets.
China’s strategy for tech growth
China’s technology development strategy has proven effective in propelling the country to the forefront of several high-tech industries. This ambitious approach, which involves broad investments across both large state-owned enterprises and smaller private startups, has fostered significant innovation and created a competitive business environment. As a result, it has the potential to serve as a model for other countries looking to stimulate tech growth.
A key driver of China’s success is its diverse investment strategy, supported by government-led initiatives like the “Made in China 2025” and the “Thousand Talents Plan“. These programs offer financial backing and attract top talent from around the globe. This inclusive approach has helped China rapidly emerge as a global leader in fields like AI, robotics, and semiconductors. However, critics argue that the strategy may be overly aggressive, potentially stifling competition and innovation.
Some have raised concerns that China’s government support unfairly favours domestic companies, providing subsidies and other advantages that foreign competitors do not receive. Yet, this type of protectionist approach is not unique to China; other countries have implemented similar strategies to foster the growth of their own industries.
Another critique is that China’s broad investment model may encourage risky ventures and the subsidising of failures, potentially leading to a market that is oversaturated with unprofitable businesses. While this criticism holds merit in some cases, the overall success of China’s strategy in cultivating a dynamic and competitive tech landscape remains evident.
Looking ahead, China’s technology development strategy is likely to continue evolving. As the country strengthens its position on the global stage, it may become more selective in its investments, focusing on firms with the potential for global leadership.
In any case, China’s strategy has shown it can drive innovation and foster growth. Other nations hoping to advance their technological sectors should take note of this model and consider implementing similar policies to enhance their own competitive and innovative business environments.
But under what regulatory framework does Chinese tech policy ultimately operate? How does it affect the whole project? Are there some negative effects of the tight state grip?
China’s regulatory pyramid: Balancing control and consequences
China’s regulatory approach to its booming tech sector is defined by a precarious balance of authority, enforcement, and market response. Angela Zhang, author of High Wire: How China Regulates Big Tech and Governs Its Economy, proposes a “dynamic pyramid model” to explain the system’s intricate dynamics. This model highlights three key features: hierarchy, volatility, and fragility.
The top-down structure of China’s regulatory system is a hallmark of its hierarchy. Regulatory agencies act based on directives from centralised leadership, creating a paradox. In the absence of clear signals, agencies exhibit inaction, allowing industries to flourish unchecked. Conversely, when leadership calls for stricter oversight, regulators often overreach. A prime example of this is the drastic shift in 2020 when China moved from years of leniency toward its tech giants to implementing sweeping crackdowns on firms like Alibaba and Tencent.
This erratic enforcement underscores the volatility of the system. Chinese tech regulation is characterised by cycles of lax oversight followed by abrupt crackdowns, driven by shifts in political priorities. The 2020 – 2022 crackdown, which involved antitrust investigations and record-breaking fines, sent shockwaves through markets, wiping out billions in market value. While the government eased its stance in 2022, the uncertainty created by such pendulum swings has left investors wary, with many viewing the Chinese market as unpredictable and risky.
Despite its intentions to address pressing issues like antitrust violations and data security, China’s heavy-handed regulatory approach often results in fragility. Rapid interventions can undermine confidence, stifle innovation, and damage the very sectors the government seeks to strengthen. Years of lax oversight exacerbate challenges, leaving regulators with steep issues to address and markets vulnerable to overcorrection.
This model offers a lens into the broader governance dynamics in China. The system’s centralised control and reactive policies aim to maintain stability but often generate unintended economic consequences. As Chinese tech firms look to expand overseas amid domestic challenges, the long-term impact of these regulatory cycles remains uncertain, potentially influencing China’s ability to compete on the global stage.
The battle for tech supremacy between the USA and China
The incoming US President Donald Trump is expected to adopt a more aggressive, unilateral approach to counter China’s technological growth, drawing on his history of quick, broad measures such as tariffs. Under his leadership, the USA is likely to expand export controls and impose tougher sanctions on Chinese tech firms. Trump’s advisors predict a significant push to add more companies to the US Entity List, which restricts US firms from selling to blacklisted companies. His administration might focus on using tariffs (potentially up to 60% on Chinese imports) and export controls to pressure China, even if it strains relations with international allies.
The escalating tensions have been further complicated by China’s retaliatory actions. In response to US export controls, China has targeted American companies like Micron Technology and imposed its own restrictions on essential materials for chipmaking and electric vehicle production. These moves highlight the interconnectedness of both economies, with the US still reliant on China for critical resources such as rare earth elements, which are vital for both technology and defence.
This intensifying technological conflict reflects broader concerns over data security, military dominance, and leadership in AI and semiconductors. As both nations aim to protect their strategic interests, the tech war is set to continue evolving, with major consequences for global supply chains, innovation, and the international balance of power in technology.
Singapore Gulf Bank is reportedly raising at least $50 million to purchase a stablecoin payments company by early 2025, according to inside sources. While the specific firm remains unnamed, the funds will support the bank’s product development, payment network expansion, and workforce growth.
The startup bank, launched in February 2024 by Singapore’s Whampoa Group and licensed in Bahrain, integrates traditional finance with cryptocurrency. Backed by Bahrain Mumtalakat Holding Co and the Whampoa Group, the bank aims to serve customers by the end of 2024. Discussions are ongoing with a Middle Eastern sovereign wealth fund and other investors to sell an equity stake of under 10% by the first quarter of next year.
Stablecoins, valued for their reliability due to being pegged to fiat currencies like the US dollar, are gaining traction globally. Singapore’s recent regulatory framework for stablecoins sets rigorous standards for issuers to achieve MAS-regulated status, reflecting the city-state’s drive to lead in crypto innovation.
Zoom, once synonymous with video conferencing during the pandemic, is pivoting to redefine itself as an ‘AI-first work platform for human connection.’ The company has dropped ‘Video’ from its name, now operating as Zoom Communications Inc., as part of its broader strategy to move beyond video services and compete with tech giants like Google, Microsoft, and Slack.
Amid declining growth following its pandemic-era boom, Zoom has expanded its offerings to include a comprehensive suite of tools under its Zoom Workplace solution, featuring team chat, email, and productivity apps. CEO Eric Yuan envisions AI as the cornerstone of this transformation, with tools designed to automate routine tasks and create ‘digital twins’ for users, freeing up time and enabling a four-day workweek.
In October, Zoom introduced its upgraded AI companion, which offers advanced summarisation and assistance capabilities. Yuan emphasises that leveraging AI for smarter, hybrid work solutions will be critical to keeping Zoom relevant as workers return to offices and competition in the enterprise software market intensifies.
