Sustainable development

X discusses a new financing round at $44 billion

Elon Musk’s social media company X is currently in discussions to raise funds from investors at a $44 billion valuation, according to Bloomberg News. Musk purchased the platform, formerly known as Twitter, for the same price in 2022.

The financing talks are still ongoing, with the potential for details to change or even for the discussions to be abandoned altogether, the report added. The US company has not yet responded to requests for comment on the matter.

In related news, last month, it was reported that Morgan Stanley, Bank of America, and Barclays were preparing to sell up to $3 billion in debt holdings in X.

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Trump discusses TikTok sale with China

President Donald Trump confirmed on Wednesday that he was in active discussions with China over the future of TikTok, as the US seeks to broker a sale of the popular app. Speaking to reporters aboard Air Force One, Trump revealed that talks were ongoing, underscoring the US government’s desire to address national security concerns tied to the app’s ownership by the Chinese company ByteDance. The move comes amid growing scrutiny over TikTok’s data security practices and potential links to the Chinese government.

The Trump administration has expressed concerns that TikTok could be used to collect sensitive data on US users, raising fears about national security risks. As a result, the US has been pushing for ByteDance to sell TikTok’s US operations to an American company. This would be part of an effort to reduce any potential influence from the Chinese government over the app’s data and operations. However, the process has faced complexities, with discussions involving multiple stakeholders, including potential buyers.

While the negotiations continue, the future of TikTok remains uncertain. If a sale is not agreed upon, the US has indicated that it could pursue further actions, including a potential ban of the app. As these talks unfold, the outcome could have significant implications for TikTok’s millions of American users and its business operations in the US, with both sides working to find a solution that addresses the security concerns while allowing the app to continue its success.

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Hong Kong explores new virtual asset regulations

Hong Kong is considering approving derivatives and margin lending for virtual assets, aiming to strengthen its position as a global hub for digital assets, according to the Securities and Futures Commission (SFC). This move is part of the city’s broader strategy, initiated in 2022, to become a leading virtual asset trading centre, particularly after China’s cryptocurrency ban in 2021. The SFC’s CEO, Julia Leung, announced the potential inclusion of derivative products and margin lending for professional investors, highlighting ongoing efforts to enhance Hong Kong’s competitiveness in the sector.

As part of its regulatory push, the city has already issued nine virtual asset trading platform licences, with more applications under review. One such licence was granted to Bullish Group, the parent company of CoinDesk. Additionally, financial secretary Paul Chan noted that the government is working on advancing regulations for stablecoins, further solidifying Hong Kong’s ambitions in the digital asset space.

The city will soon release a detailed roadmap for virtual asset growth, which will outline future plans. Meanwhile, Hong Kong competes with cities like Singapore and Dubai, also striving to become leading centres for digital finance. The latest developments come amid a broader global shift in the cryptocurrency market, which has seen significant interest from institutional investors following regulatory changes in the US under President Trump.

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AI’s rapid rise sparks innovation and concern

AI has transformed everyday life, powering everything from social media recommendations to medical breakthroughs. As major tech companies and governments compete to lead in AI development, concerns about ethics, bias, and environmental impact are growing.

AI systems, while capable of learning and processing vast amounts of data, lack human reasoning and empathy. Generative AI, which creates text, images, and music, has raised questions about misinformation, copyright issues, and job displacement.

AI’s influence is particularly evident in the workplace, education, and creative industries. Some experts fear it could worsen financial inequality, with automation threatening millions of jobs.

Writers, musicians, and artists have criticised AI developers for using their work without consent. Meanwhile, AI-generated misinformation has caused controversy, with major companies halting or revising their AI features after errors.

The technology also presents security risks, with deepfakes and algorithmic biases prompting urgent discussions about regulation.

Governments worldwide are introducing policies to manage AI’s risks while encouraging innovation. The European Union has imposed strict controls on AI in sensitive sectors with the AI Act, while China enforces rules ensuring compliance with censorship laws.

The United Kingdom and the United States have formed AI Safety Institutes to evaluate risks, though concerns remain over AI’s environmental impact. The rise of large data centres, which consume vast amounts of energy and water, has sparked debates about sustainability.

Despite these challenges, AI continues to advance, shaping the future in ways that are still unfolding.

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Resonac plans to pursue acquisitions after reducing borrowing

Resonac Holdings, a leading chip materials maker in Japan, is positioning itself to make strategic acquisitions after reducing its borrowing, according to CEO Hidehito Takahashi. Speaking to Reuters, Takahashi expressed the company’s intention to take an aggressive approach this year, particularly eyeing opportunities when a state-backed fund exits its competitor JSR, a photoresist maker recently taken private.

Resonac, formed by Showa Denko’s acquisition of Hitachi Chemical, has been divesting assets, including a planned partial spin-off of its petrochemical business. Takahashi sees JSR’s potential exit as a key opportunity for Resonac to expand its footprint in the semiconductor materials sector. Japan’s semiconductor market remains competitive, despite the country’s reduced role in chip manufacturing, and companies like Resonac must scale up to remain viable.

In addition to its expansion efforts, Resonac is establishing an R&D centre in Silicon Valley to strengthen its ties with firms in the region. However, Takahashi made it clear that the company is not currently considering manufacturing materials in the US, though future demand could prompt a reassessment of such plans.

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AI sizing tools aim to reduce fashion returns

Online fashion retailers are increasingly using artificial intelligence to tackle the costly issue of clothing returns, with up to 30% of purchases being sent back due to sizing problems. A study by McKinsey estimates that each return costs between $21 and $46, significantly affecting profit margins. Many customers order multiple sizes and return those that don’t fit, creating logistical headaches for retailers.

To address this, companies are adopting AI-driven sizing tools. French start-up Fringuant, for instance, uses an algorithm that analyses a shopper’s height, weight, and a quick selfie to predict the best size. Zalando, a German e-commerce giant, has also implemented its own AI-powered tool that guides customers by comparing their body shape with garment dimensions. These technologies are already helping some brands reduce return rates significantly.

Beyond sizing, AI is also improving warehouse operations to prevent shipping mistakes. Smart cameras on order pickers’ trolleys at logistics firms help ensure the right product is selected, while AI-equipped robots track stock levels, reducing errors that lead to returns. As online shopping continues to grow, retailers hope these innovations will streamline processes and boost efficiency.

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Mira Murati launches AI startup Thinking Machines Lab

Former OpenAI chief technology officer Mira Murati has launched a new AI startup called Thinking Machines Lab, backed by a team of around 30 researchers and engineers from companies such as OpenAI, Meta, and Mistral. The startup aims to create AI systems that encode human values and address a wider range of applications than existing rivals, according to a blog post from the company.

Murati’s new venture demonstrates her ability to attract top talent, with two-thirds of the team made up of former OpenAI employees. Among them are Barret Zoph, a well-known researcher who joined Murati in leaving OpenAI in September, and John Schulman, OpenAI’s co-founder and the startup’s chief scientist. Schulman previously left OpenAI for Anthropic to focus on AI alignment, a key goal of Thinking Machines Lab.

The company’s approach differentiates itself by combining research and product teams in the design process. Thinking Machines Lab plans to contribute to AI alignment research by sharing code, datasets, and model specifications. Murati, now CEO of the startup, has previously played a major role in developing ChatGPT, and her exit from OpenAI reflects a broader trend of high-profile departures amid changes at the company.

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Google settles tax dispute in Italy for 326 million euros

Milan prosecutors have announced plans to drop a case against Google’s European division after the company agreed to settle a tax dispute by paying 326 million euros (£277 million). The settlement covers the period from 2015 to 2019, including penalties, sanctions, and interest.

The tax dispute stemmed from allegations that Google had failed to file and pay taxes on revenue generated in Italy, based on the digital infrastructure it operates within the country. This comes after the company settled a previous tax case with Italian authorities in 2017 by paying 306 million euros, which acknowledged Google’s permanent presence in Italy.

In 2023, Italy had requested that Google pay 1 billion euros in unpaid taxes and penalties. However, with this latest settlement, the case against the tech giant appears to be resolved for now.

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AI leadership goal drives South Korea’s GPU investment

South Korea has unveiled plans to acquire 10,000 high-performance GPUs by the end of the year, aiming to strengthen its national AI computing capabilities.

Officials emphasised that global AI competition has escalated from corporate rivalries to clashes between nations’ innovation ecosystems. Acting President Choi Sang-mok stated that public-private cooperation would be key to launching services at the country’s national AI computing centre.

The initiative comes amid the US government’s newly implemented restrictions on exporting AI chips, which categorise countries into tiers. South Korea remains exempt from these restrictions, allowing it access to advanced GPUs.

Details on the budget, specific GPU models, and private sector partners are expected to be finalised by September, according to the Ministry of Science and ICT.

US-based Nvidia dominates the GPU market with an 80% share, with rivals Intel and AMD trailing behind. Meanwhile, OpenAI, supported by Microsoft, is developing its first in-house AI chip to reduce dependency on Nvidia.

Chinese startup DeepSeek has also entered the AI scene with models prioritising computational efficiency over raw processing power, potentially narrowing the technological gap with US-made processors.

As nations race to secure technological supremacy, South Korea’s move signals its commitment to advancing its AI infrastructure and staying competitive in the global AI ecosystem.

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Chip experts nominated for Samsung’s board

Samsung Electronics has nominated two of its top chip executives and a semiconductor expert for its board, aiming to enhance its position in the competitive chip market. The move reflects a strategic effort to revitalise its struggling semiconductor business.

Jun Young-hyun, head of Samsung’s chip division, and Chief Technology Officer Song Jai-hyuk have been proposed for board membership. Additionally, Lee Hyuk-jae, a professor at Seoul National University and leader of its semiconductor research centre, has been named as an outside director.

Samsung has been working to regain its footing in the semiconductor industry, where it recently lost market leadership in high-bandwidth memory (HBM) chips to rival SK Hynix. HBM chips are crucial for AI-driven GPUs, a rapidly growing market dominated by firms like Nvidia.

The nominations will be presented for approval at Samsung’s shareholders’ meeting scheduled for 19 March. The company hopes the addition of these experts will strengthen its long-term strategy in the chip sector.

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