Development Archives | Page 552 of 562 | Digital Watch Observatory

Amazon and Vrio challenge Starlink with South American satellite internet

Amazon and telecommunications firm Vrio are set to launch a satellite internet service in seven South American countries, directly competing with Elon Musk’s Starlink. Vrio, which oversees DirecTV Latin America and Sky Brasil, will offer the service in Argentina, Brazil, Chile, Uruguay, Peru, Ecuador, and Colombia. The initiative, utilising Amazon’s Project Kuiper, aims to provide internet access via satellites in low Earth orbit.

According to World Bank data, the partnership addresses a significant demand, as an estimated 200 million people in the region have inadequate or no internet access. The challenging geography and the high cost of large infrastructure investments further highlight the need for satellite internet. The service is scheduled to go live in mid-2025, beginning in Argentina.

Project Kuiper plans to deploy 3,236 satellites to support this endeavour, part of Amazon’s $10 billion investment announced in 2019. The ultimate goal is to ensure that all customers, regardless of their location in urban, suburban, or rural areas, have equal access to high-speed broadband.

Meta unveils new WhatsApp tools for businesses

Meta has announced a range of product updates for WhatsApp businesses in India and other countries, introducing AI tools and a Meta Verified program. That announcement was made during the Conversations event in Sao Paulo, Brazil, where Meta detailed that these new features would provide businesses with additional options on WhatsApp. Initially available in India, Brazil, Indonesia, and Colombia, these services will be offered through subscription plans starting at approximately $14 per month.

The Meta Verified program, previously launched for Facebook and Instagram, is now extended to WhatsApp businesses. The verification provides a badge for companies that have registered their information with Meta, offering them protection against impersonation and additional account support. Verified businesses can use WhatsApp across multiple devices, and customers will see the badge on their channels and custom pages, ensuring authenticity and trust.

In addition to verification, Meta is introducing AI tools designed to help businesses enhance customer interactions. These tools can assist with answering common questions, discovering new products, and creating ads for Instagram and Facebook. Moreover, Meta is rolling out a feature that allows users to call businesses directly via WhatsApp, facilitating quick assistance for complex inquiries like travel arrangements or banking needs. The calling feature is currently being tested and will be expanded to more businesses in the coming months.

Google teams up with NV Energy to boost geothermal power for Nevada data centres

Google has announced a partnership with NV Energy, a Berkshire Hathaway electric utility, to significantly increase the use of geothermal energy to power its Nevada data centers. The agreement, pending approval from state utility regulators, is a major step in Google’s mission to operate entirely on clean energy by 2030. The deal will enhance Google’s use of carbon-free geothermal electricity from 3.5 megawatts to 115 megawatts within six years. NV Energy will collaborate with Fervo Energy, an advanced geothermal developer, which has been supplying Google with geothermal power since 2021. That partnership includes developing a new rate structure called the Clean Transition Tariff, designed to facilitate similar agreements in other regions.

The deal comes as tech giants like Google, Amazon, and Microsoft seek sustainable energy sources to power their growing data centers, which are essential for supporting technologies such as AI and cloud computing. Currently, 64% of Google’s global operations are powered by carbon-free energy, with a focus on wind and solar. However, geothermal energy provides a more reliable alternative, as it is not dependent on weather conditions. The partnership with NV Energy represents a new approach for companies with significant and growing electricity demands to achieve their climate goals within regulated power markets. In these markets, companies must purchase power from the local utility rather than directly from a power generator, complicating efforts to secure entirely clean energy sources. Duke Energy, which operates in regulated states, announced a similar agreement with Google, Microsoft, and Amazon recently.

Geothermal energy, which harnesses naturally occurring underground heat to produce renewable electricity, accounts for about 10% of Nevada’s total electricity generation, the highest proportion of any U.S. state, according to the Energy Information Administration. Google’s collaboration with NV Energy and Fervo Energy demonstrates a strategic move towards more sustainable and reliable energy sources, contributing to the broader effort of reducing carbon emissions and combating climate change.

Why does it matter?

Environmental Impact: By significantly increasing its use of geothermal energy, Google is reducing its carbon footprint and advancing its goal of operating on entirely clean energy by 2030.
Energy Reliability: Geothermal energy provides a stable and continuous power source, unlike wind and solar, which are weather-dependent.
Industry Leadership: The partnership sets a precedent for other companies to follow, promoting innovative approaches to achieving clean energy goals in regulated power markets.
Economic Benefits: Developing geothermal energy projects can boost local economies, create jobs, and enhance the energy infrastructure in Nevada.

Brazil partners with OpenAI to modernise legal processes and cut court costs

Brazil’s government has enlisted OpenAI’s services to streamline the assessment of thousands of lawsuits using AI, aiming to mitigate costly court losses that have burdened the federal budget. Through Microsoft’s Azure cloud-computing platform, OpenAI’s AI technology, including ChatGPT, will identify lawsuits requiring prompt government action and analyse trends and potential focus areas for the solicitor general’s office (AGU).

The AGU revealed that Microsoft would facilitate the AI services from OpenAI, though the exact cost of Brazil’s procurement remains undisclosed. The initiative responds to the escalating financial strain caused by court-ordered debt payments, which are anticipated to reach 70.7 billion reais ($13.2 billion) next year, excluding smaller claims. The surge from 37.3 billion reais in 2015, equivalent to about 1% of GDP, surpasses government expenditures on unemployment insurance and wage bonuses for low-income earners by 15%.

While the AGU has not clarified the reasons behind Brazil’s mounting court expenses, it assures that the AI project will not supplant human efforts but enhance efficiency and precision, all under human supervision. This move aligns with broader governmental efforts, including releasing 25 million reais in supplementary credits for AGU in March to implement strategic IT projects and bolster operational capacities.

MediaTek develops ARM-based chip for Microsoft AI laptops

MediaTek, a leading semiconductor company in Taiwan, is collaborating with Microsoft to design an ARM-based chip specifically for its Windows operating system AI-powered laptops. The strategic partnership marks a significant move in the tech industry. Last month, Microsoft unveiled a new generation of laptops featuring chips designed with ARM Holdings technology, providing the necessary power to run advanced AI applications. These applications are considered the future of consumer computing by Microsoft executives.

MediaTek’s new chip is set to be integral in this effort and is expected to bring substantial advancements in processing power and efficiency. That collaboration underscores the growing demand for high-performance, energy-efficient chips tailored for AI applications. Their ARM-based chip is designed to optimize AI tasks, leveraging ARM’s architecture known for its power efficiency and performance scalability. The development aligns with the industry trend of integrating specialized hardware to handle AI workloads more effectively, reducing the reliance on general-purpose CPUs.

For Microsoft, this partnership with MediaTek represents a strategic move to strengthen its position in the competitive AI hardware market. By incorporating MediaTek’s advanced chip technology, Microsoft aims to offer more capable AI laptops, appealing to both consumer and enterprise markets. The collaboration also takes direct aim at Apple, which has been using its own ARM-based chips for Mac computers for roughly four years. Also, Microsoft’s decision to optimise Windows for ARM could pose a significant challenge to Intel’s long standing dominance in the PC market. For decades, Windows machines have relied on chip architectures developed by Intel and AMD. MediaTek’s PC chip is expected for release late next year, coinciding with the end of Qualcomm’s exclusive deal to supply ARM-based chips for Windows laptops.

Why does it matter?

Enhanced AI capabilities: The integration of MediaTek’s specialised chip will enable Microsoft’s AI laptops to perform more complex AI tasks with greater efficiency and speed. That advancement is crucial as AI applications become more sophisticated and demand higher computational power.

Energy efficiency: ARM-based chips are known for their power efficiency, which means that AI laptops equipped with these chips will likely have longer battery life and reduced energy consumption. This is particularly important for users who require high performance without sacrificing mobility.
Market innovation: The partnership could set a new standard in the AI hardware market, encouraging other tech companies to develop and integrate specialised chips for AI applications. That could lead to a surge in innovation, driving the development of more advanced and capable AI devices.
Competitive edge: For both MediaTek and Microsoft, this collaboration provides a competitive edge. MediaTek can showcase its capacities in developing cutting-edge chips, while Microsoft can differentiate its AI laptops in a crowded market by offering superior performance and efficiency.

US funds Rocket Lab $23.9 million for space semiconductor production

On Tuesday, the US Commerce Department announced plans to award Rocket Lab $23.9 million to significantly boost the production of compound semiconductors used in satellites and spacecraft. This funding aims to increase the production of space-grade solar cells by 50% over the next three years, bolstering the supply chain for critical space technologies. The funds come from the Biden administration’s $52.7 billion chip manufacturing and research subsidy program, benefiting major companies like Samsung, Intel, and TSMC.

In addition to federal support, the State of New Mexico has committed $25.5 million in financial assistance and incentives to help Rocket Lab expand its Albuquerque facility. Rocket Lab, founded in 2006 by New Zealander Peter Beck, specialises in producing highly efficient, radiation-resistant space-grade solar cells. These solar cells are essential for powering various US space programs, including missile awareness systems, the James Webb Space Telescope, and NASA’s Artemis lunar explorations.

Commerce Secretary Gina Raimondo emphasised the importance of solar cells in maintaining communication and space technology operations. The $23.9 million award will help Rocket Lab meet the growing demand for these components from the US military, NASA, and the commercial space industry. The expansion in Albuquerque is expected to create over 100 manufacturing jobs and enhance the company’s capacity to support US space missions.

Rocket Lab has secured numerous federal contracts worth hundreds of millions of dollars for satellite production and spacecraft launches. The proposed investment, which could be adjusted after further review by the Commerce Department, will also allow Rocket Lab to claim up to 25% in investment tax credits for qualified capital expenditures, part of the broader benefits provided by the Chips Act.

Rwanda to adopt digital currency by 2026

Rwanda aims to develop its own national Central Bank Digital Currency (CBDC) within the next two years. According to the National Bank of Rwanda (BNR), that initiative will offer Rwandans a secure, cost-free, and convenient alternative to physical cash. The CBDC is anticipated to boost financial inclusion, enabling more unbanked individuals to engage in the formal economy. Soraya Hakuziyaremye, Deputy Governor of Rwanda’s Central Bank, disclosed the 2026 target during an interview. She emphasised the importance of Rwanda’s CBDC, noting similar developments in other countries in the continent, including Nigeria, Ghana, and South Africa, which are either piloting or have already launched their own CBDCs.

Hakuziyaremye also noted that, considering Rwanda’s aspirations for ICT development and a cashless economy, it was essential to evaluate the potential benefits of following other countries’ examples, especially that the country’s major trading partners are testing or adopting the technology. In November 2023, National Bank of Rwanda Governor John Rwangombwa announced during the presentation of the central bank’s annual report for the fiscal year 2022/2023 to a joint parliamentary session that the CBDC was in development. In May 2024, the Deputy Governor, working alongside the Ministry of Finance, ICT, and Innovation, formed a task force for a feasibility study on CBDC in Rwanda in order to explore the technological requirements, regulatory frameworks, and potential risks.

The Deputy Governor mentioned that the authority published a research paper and held a public consultation process to address various concerns and ensure the CBDC benefits the population, including data privacy, system resilience, and the potential destabilization of the financial system. After the public consultation process ends in the next four weeks, Rwanda will begin a proof of concept to test the technology, design, and speed on a small scale. Additionally, a six-month international test will be conducted to evaluate the technology for cross-border payments. Following these tests, selected individuals and companies will participate in testing the digital currency. While considering various CBDC design options, Rwanda prefers a retail CBDC distributed through banks and an offline-accessible CBDC, which would be particularly useful in areas without internet access or smartphones, or during power outages.

Why does it matter?

The introduction of a CBDC in Rwanda holds significant importance for:

Economic Growth and Stability, as it contributes to a more stable and resilient economy by improving the efficiency of monetary policy implementation. That can lead to better control of inflation and economic stability.
Financial Inclusion in a country where a significant portion of the population remains unbanked or underbanked. A digital currency can provide easier access to financial services especially to individuals in remote and underserved areas.
Cost Efficiency by the reduction of the costs associated with producing and managing physical cash (savings on printing, transportation, and storage)
Enhanced Security and Transparency due to its higher level of security compared to physical cash, reducing the risk of counterfeiting and fraud. The use of blockchain or similar technologies can ensure greater transparency and traceability of transactions, vital for combating money laundering and other illicit activities.
Technological Advancement through financial technology that can attract investment, stimulate innovation, and create new job opportunities in the tech sector.

Sri Lanka grants preliminary approval to Starlink

Sri Lanka has granted preliminary approval to Elon Musk’s Starlink to offer internet services in the country, as announced by the president’s office recently. The decision was expedited following a meeting between Musk and President Ranil Wickremesinghe in Indonesia during the 10th World Water Forum.

According to the president’s office, the telecommunications regulator approved the proposal after a public consultation. Discussions between Musk and Wickremesinghe focused on enhancing internet connectivity in rural areas of Sri Lanka and exploring potential renewable energy collaborations.

Salesforce launches first AI centre in London

Salesforce has chosen London for its first AI centre, where experts, developers, and customers will collaborate on innovation and skill development. The US cloud software company, which is hosting its annual London World Tour event, announced last year a $4 billion investment in the UK over five years, focusing on AI innovation.

Zahra Bahrololoumi, CEO of Salesforce UK and Ireland, highlighted customer enthusiasm for AI’s benefits while noting caution about potential risks. She emphasised the importance of trust in AI adoption, citing Salesforce’s Einstein technology’s ‘Trust Layer’ that protects customer data.

Moreover, Salesforce’s dedication to responsible AI goes beyond data security. Bahrololoumi emphasises the company’s commitment to making AI a force for good. Their message to customers and partners is clear as they are deeply committed to collaborating closely to ensure that the transformative technology of AI brings about positive impacts.

Vanguard and NXP to build $7.8 billion chip plant in Singapore

Vanguard International Semiconductor and NXP Semiconductors are set to build a $7.8 billion chip manufacturing plant in Singapore to cater to the rising demand in the region. The joint venture between Taiwan-based Vanguard, partly owned by Taiwan Semiconductor Manufacturing Co. (TSMC), and Dutch chip maker NXP will establish a 300 mm semiconductor wafer manufacturing facility. Construction is scheduled to commence in the second half of 2024, with initial production expected by 2027. Vanguard will hold a 60% stake in the venture, while NXP will own the remaining 40%.

The new facility will produce chips for the automotive, industrial, consumer, and mobile markets. That’s part of a broader global trend, as countries and companies invest heavily to secure a leading position in the semiconductor industry. According to the consulting firm International Business Strategies, the industry is projected to surpass $1 trillion by the decade’s end.

Other nations are also ramping up their semiconductor investments. South Korea recently announced a $19 billion support package for its chip industry. China raised $48 billion for its largest national semiconductor fund, and Japan and the EU have committed significant government support to bolster their semiconductor sectors.