AI companies, including OpenAI, are shifting away from the ‘bigger is better’ philosophy for training models. Instead, they are developing techniques that allow algorithms to ‘think’ in more human-like ways. These methods aim to address challenges such as massive energy consumption, hardware failures, and data scarcity that have hindered advancements in large language models.
OpenAI’s new model, o1, uses a technique called ‘test-time compute’, allowing it to consider multiple answers and choose the best option during use. This approach improves performance in complex tasks, like problem-solving and decision-making, without needing extensive pre-training. Noam Brown, an OpenAI researcher, revealed that even brief ‘thinking’ boosts the model’s capabilities significantly.
The industry-wide shift has broader implications for AI hardware, especially as Nvidia’s chips have been critical to AI training. Experts predict a move towards distributed cloud-based servers for inference tasks, potentially reshaping the demand landscape for chips. Prominent investors, such as Sequoia and Andreessen Horowitz, are monitoring these changes closely as they may impact investments in AI infrastructure.
German optical tech firm Carl Zeiss AG has inaugurated its first global capability centre (GCC) in Bengaluru, India, and plans to double its local workforce to 5,000 over the next three years. The new centre will focus on cloud computing, cybersecurity, and network operations, alongside software development for Carl Zeiss’s medical tech division. This move highlights India’s transformation from an outsourcing destination to a strategic base supporting global operations.
Beyond the GCC, Zeiss is expanding its presence in Bengaluru with a new manufacturing plant slated to open in 2025. This facility, the company’s largest investment outside Germany, will be its fifth in India, contributing to its workforce growth. The India unit, also involved in R&D and sales, is projected to reach a revenue of 22 billion rupees for the year ending September 2025—a 19% increase.
India’s GCC sector is booming, with Karnataka’s government aiming to double GCCs in the state by 2029. Industry reports expect the Indian GCC market to reach up to $105 billion by 2030, reflecting the country’s increasing role in global business support.
Vietnam’s semiconductor industry is gaining momentum as foreign companies invest in chip testing and packaging facilities, shifting some production away from China. Amid trade tensions between the US and China, several global players, including South Korea’s Hana Micron and US-based Amkor Technology, are expanding operations in Vietnam to diversify their production bases. Hana Micron has committed over $930 million to boost its packaging capacity, while Amkor is investing $1.6 billion to establish its largest packaging plant, transferring some machinery from its Chinese facilities.
The rise in investment is set to increase Vietnam’s global share in chip assembling, testing, and packaging, with estimates suggesting a rise from 1% in 2022 to around 8-9% by 2032. Domestic companies are also stepping up. Vietnamese tech firm FPT plans to start a testing facility near Hanoi next year, investing up to $30 million, while Sovico Group is seeking partnerships for a chip plant in Danang.
Vietnam’s strategic push into the semiconductor sector has been encouraged by the US, viewing the country as a potential alternative to China for supply chains. The Biden administration’s support, especially as trade tensions grow, has bolstered Vietnam’s role in this industry. With domestic and foreign investments combined, Vietnam is poised to strengthen its position as a key player in the global semiconductor back-end market.
Looking forward, Vietnam is ambitiously aiming to develop its front-end chipmaking capabilities, planning to have its first foundry operational by 2030. Viettel, a state-owned firm, is set to lead this initiative, indicating Vietnam’s broader goal of advancing its semiconductor industry and reducing reliance on foreign production bases.
EU has committed €133 million ($142 million) to support pilot production facilities for photonic semiconductors in the Netherlands, according to the Dutch economy ministry. This initiative forms part of a larger €380 million fund under the EU’s Chips Joint Undertaking, a public-private partnership designed to bolster Europe’s semiconductor industry. Photonic semiconductors, which use light instead of electrons for calculations, promise enhanced speed and energy efficiency and are increasingly essential in fields like data centres and automotive technology.
Dutch economy minister Dirk Beljaarts emphasised photonics as a “technology of strategic importance” for Europe’s economic competitiveness. By building strong domestic capabilities in research, innovation, and supply chains, the EU aims to reduce dependence on global tech rivals. The move follows calls from European industry leaders for significant EU investment to keep pace with advancements in Asia and the US.
The Dutch pilot facilities, slated to begin construction in 2025, will involve Eindhoven and Twente universities alongside the TNO research institute, with co-investment from companies utilising the new infrastructure.
Baidu Inc. has launched several new AI-driven tools, including a text-to-image generator and a no-code app builder, aiming to make advanced technology more accessible. The unveiling took place at the Baidu World Conference, where CEO Robin Li presented innovations that showcase the company’s commitment to commercialising large language model (LLM) applications.
Among the new offerings is I-RAG, a text-to-image generator designed to prevent errors known as hallucinations—images deviating from input text or containing unreal elements. According to Li, the company’s Ernie platform now handles 1.5 billion interactions daily, a remarkable leap from 200 million requests just months ago. This platform supports tasks like text generation, question-answering, and other AI-assisted functions.
In its push for user-friendly AI, Baidu has introduced Miaoda, a no-code tool that leverages LLM capabilities to enable software creation without coding expertise. The company has also integrated these tools into its cloud services, providing AI-powered solutions across its product range for broader commercialisation.
Baidu’s expansion includes new hardware, with the debut of Xiaodu AI glasses, equipped with cameras and voice-interaction capabilities powered by the Ernie platform. Rather than building a single ‘super app’, Baidu is diversifying its approach, distinguishing itself from rivals by focusing on a more versatile AI product lineup.
Vietnam has warned Chinese online retailers Shein and Temu to register with the government by the end of November or face potential blocks on their websites and apps. The move follows concerns from Vietnam’s government and local businesses about the impact of foreign e-commerce platforms on local markets, especially regarding deep discounts and counterfeit goods. Deputy Trade Minister Nguyen Hoang Long stated that if Shein and Temu do not comply, technical measures will be taken to restrict access to their platforms.
Shein has been active in Vietnam for two years, while Temu only recently launched in the country. Shein expressed its commitment to adhering to Vietnam’s regulations, but Temu has yet to respond. This registration requirement comes amid broader scrutiny of ultra-low-cost foreign retailers in Southeast Asia, as governments like Indonesia’s have asked app stores to block Temu to support small businesses.
Vietnam’s e-commerce market, the third largest in Southeast Asia at $22 billion, is rapidly growing. Alongside Shein and Temu, the market features popular platforms like Shopee, Lazada, and local players Tiki and Sendo.
The cryptocurrency market has surged to a record-breaking $3.12 trillion, bringing it close to surpassing France’s GDP. According to the International Monetary Fund, Bitcoin’s impressive rally to $89,500 played a major role in this milestone, pushing its market capitalisation to $1.77 trillion—overtaking Spain’s economy.
The crypto market is now more valuable than Microsoft and rapidly approaching the market caps of Nvidia and Apple. Analysts are divided on what lies ahead. While some, like Markus Thielen from 10x Research, believe Bitcoin will dominate and potentially hit $100,000 by the end of the year, others, including Rachael Lucas from BTC Markets, expect altcoins to take the lead in driving the market toward $4 trillion.
Bitcoin remains the focus, gaining 11% in 24 hours to $89,478. With prices nearing $90,000, the next few weeks could determine whether Bitcoin cements its dominance or altcoins take the spotlight.
Taiwan Semiconductor Manufacturing Co. (TSMC) confirmed that its investment plans in the United States will continue unchanged, following the election of Donald Trump as the next US president. TSMC, a leading global chipmaker and supplier to tech giants like Apple and Nvidia, is investing $65 billion in new semiconductor factories in Arizona.
Despite Trump’s previous comments accusing Taiwan of harming the US semiconductor industry, TSMC has recently secured a $6.6 billion subsidy from the US Commerce Department to support advanced chip production in Phoenix. TSMC’s US unit, along with other firms like GlobalFoundries, is expected to receive additional support under the Biden administration’s Chips and Science Act.
TSMC shares have remained resilient, bolstered by strong demand for AI technology, with its American Depositary Receipts rising 4.1% on Thursday as Nvidia’s stock surged, helping drive investor confidence.
Cloud monitoring firm Datadog raised its annual revenue and profit forecasts on Thursday, driven by increasing demand for its AI-backed cybersecurity products. The New York-based company now expects full-year revenue of about $2.66 billion, up from its previous projection of $2.62 to $2.63 billion, with analysts having anticipated $2.63 billion. Datadog also raised its adjusted profit forecast to between $1.75 and $1.77 per share, surpassing earlier estimates of $1.62 to $1.66.
The company’s performance has been bolstered by the growing adoption of AI applications by its customers, who are increasingly deploying these tools in live production environments. As AI apps run in the cloud, Datadog stands to benefit from the ongoing migration to cloud services, which drives demand for its monitoring software. For the quarter ending September 30, Datadog reported revenue of $690 million, beating the expected $664.3 million, and posted an adjusted profit of 46 cents per share, exceeding analysts’ predictions of 40 cents.
Despite the strong results and optimistic growth outlook, Datadog’s stock saw some volatility, rising 4.1% before later paring its gains as investors reacted to high expectations for the company’s performance.
Ukraine and Lithuania partner to enhance customs cooperation through a new Memorandum of Understanding (MoU) signed on 25 October as part of the EU4Digital program. The MoU focuses on improving cross-border trade processes by streamlining customs procedures, reducing bureaucratic obstacles, speeding up processing times, and increasing transparency.
A key component of this partnership is connecting both countries’ Systematic Electronic Exchange of Data (SEED) nodes, which allows for secure and efficient electronic customs data exchange. While Ukraine has implemented SEED in previous collaborations with Romania and Moldova, Lithuania is now reactivating its SEED system after a pilot with Belarus.
The collaboration aims to facilitate trade and strengthen economic ties between Ukraine, Lithuania, and the EU, setting a new standard for digital customs integration. Through this MoU, Ukraine and Lithuania partner to create a pioneering digital customs link between two countries that do not share a common border.
Why does it matter?
By demonstrating the capacity of digital solutions to bridge geographical divides, this agreement sets a precedent for future regional customs partnerships. The initiative highlights the potential for increased connectivity, streamlined trade, and improved regional integration.
