Microsoft announced changes to its longstanding agreement with OpenAI following the AI leader’s new partnership with Oracle and SoftBank on a $500 billion AI data centre project, Stargate. The joint venture, unveiled by President Donald Trump at the White House, aims to solidify US leadership in AI, leveraging Nvidia chips and other cutting-edge technologies.
While Microsoft retains exclusive rights to OpenAI’s APIs, the amendments now allow OpenAI to build additional capacity outside of Microsoft’s infrastructure. This paves the way for Oracle’s involvement in Stargate, which will operate as a separate entity with governance rights shared among founding members and external investors like UAE’s MGX. SoftBank CEO Masayoshi Son will chair the venture’s board.
Despite this shift, Microsoft remains a central technology partner, continuing to benefit from revenue-sharing agreements with OpenAI and maintaining exclusivity over key offerings through its Azure cloud service. “The key elements of our partnership remain intact through 2030,” Microsoft said, reaffirming its commitment to OpenAI’s long-term growth.
Oracle and OpenAI have not commented on Microsoft’s statements, but the partnership underscores the strategic realignments shaping the future of AI infrastructure in the US.
Samsung and LG Electronics may shift some home appliance production from Mexico to the United States, according to a South Korean news report. The potential move follows former President Donald Trump’s announcement of possible 25% tariffs on imports from Canada and Mexico, set to take effect on February 1.
Samsung is reportedly considering relocating dryer production to its South Carolina plant, while LG may move refrigerator production to its Tennessee factory, which already produces washing machines and dryers. Both companies are evaluating their operations as they adapt to market changes and trade policies.
In statements, Samsung emphasised its flexible global production strategy, while LG highlighted its commitment to adjusting production systems to meet market demands. These considerations reflect broader shifts in manufacturing strategies due to trade uncertainties.
Donald Trump has rescinded a 2023 executive order issued by Joe Biden aimed at mitigating risks associated with AI to consumers, workers, and national security. Biden’s order mandated that developers of high-risk AI systems share safety test results with the US government before public release, under the Defense Production Act. It also required federal agencies to establish safety standards addressing potential threats such as cybersecurity, chemical, and biological risks. This move came amid congressional inaction on AI legislation.
The Republican Party had pledged to overturn Biden’s order, claiming it stifled AI innovation. The party’s 2024 platform emphasises support for AI development that aligns with free speech and human progress. Generative AI technologies, capable of creating content like text and images, have sparked both excitement and concern over their potential to disrupt industries and eliminate jobs.
While Trump revoked Biden’s AI safety framework, he left intact another executive order issued last week that supports the energy needs of advanced AI data centres. Biden’s newer order calls for federal assistance, including leasing Defense and Energy Department sites, to support the rapid growth of AI infrastructure. Meanwhile, US companies like Nvidia have criticised recent Commerce Department restrictions on AI chip exports, reflecting ongoing tensions between regulation and innovation in the tech sector.
Circle CEO Jeremy Allaire anticipates ‘imminent’ executive orders from incoming US President Donald Trump that could reshape the financial landscape for cryptocurrency. Allaire, whose company issues the USDC stablecoin, expects these orders to allow banks to trade crypto, offer crypto investments to high-net-worth clients, and even hold digital assets in portfolios.
Trump, who has positioned himself as a ‘crypto president,’ is expected to take action after his inauguration to reduce regulatory barriers for crypto and promote widespread adoption. Allaire pointed to repealing the Securities and Exchange Commission’s Staff Accounting Bulletin 121, which has made it challenging for banks and financial institutions to hold crypto assets on their balance sheets.
Allaire also forecasted increased legislative activity surrounding digital asset regulations, with Congress expected to take a more active role in the coming weeks. Circle’s USDC is the world’s second-largest stablecoin, and Allaire’s comments signal growing optimism in the crypto sector following Trump’s election.
Spain’s government has announced a new initiative to promote the adoption of AI technologies across the country’s businesses. Prime Minister Pedro Sanchez revealed on Monday that the government will provide an additional 150 million euros ($155 million) in subsidies aimed at supporting companies in their efforts to integrate AI into their operations.
The funding is designed to help businesses harness the potential of AI, which has become a critical driver of innovation and efficiency in various sectors, from manufacturing to healthcare and finance. The subsidies will be available to companies looking to develop or adopt AI-based solutions, to foster digital transformation and maintain Spain’s competitive edge in the global economy.
Sanchez emphasised that the funding will play a vital role in ensuring Spain remains at the forefront of the digital revolution, helping to build a robust, AI-powered economy. The move comes as part of Spain’s broader strategy to invest in technology and innovation, aiming to enhance productivity and create new opportunities for growth in both the public and private sectors.
Meta has announced a deal to purchase 200 megawatts of solar power from multinational utility Engie. The move bolsters the tech giant’s renewable energy portfolio, which now exceeds 12 gigawatts. The new solar farm, located in Texas, is near one of Meta’s existing data centres and is expected to become operational by 2025.
The push for renewable energy comes as tech companies face rising power demands driven by AI development and the rapid construction of data centres. Meta recently revealed plans for a 2-gigawatt data centre in Louisiana, relying on natural gas. The firm has also expressed interest in nuclear power, seeking proposals for up to 4 gigawatts of nuclear energy by the early 2030s.
While nuclear energy garners significant attention, renewable sources are crucial in powering today’s tech infrastructure. Meta’s solar energy deal mirrors efforts by other tech giants like Google and Microsoft, which have secured multi-billion-dollar renewable energy agreements. As companies race to meet energy needs, the speed of renewable energy deployment continues to offer a competitive edge over emerging nuclear options.
The European Commission has filed a complaint with the World Trade Organization (WTO) against China, accusing the country of ‘unfair and illegal’ practices regarding worldwide royalty rates for European standard essential patents (SEPs). According to the Commission, China has empowered its courts to set global royalty rates for the EU companies, particularly in the telecoms sector, without the consent of the patent holders.
The case focuses on SEPs, which are crucial for technologies like 5G, used in mobile phones. European companies such as Nokia and Ericsson hold many of these patents. The Commission claims that China’s actions force European companies to reduce their royalty rates globally, providing Chinese manufacturers with unfairly low access to European technologies.
The European Union has requested consultations with China, marking the first step in WTO dispute resolution. If a resolution is not reached within 60 days, the EU can request the formation of an adjudicating panel, which typically takes about a year to issue a final report. This case is linked to a previous EU dispute at the WTO concerning China’s anti-suit injunctions, which restrict telecom patent holders’ ability to enforce intellectual property rights in courts outside China.
The Federal Trade Commission (FTC) has raised concerns about the competitive risks posed by collaborations between major technology companies and developers of generative AI tools. In a staff report issued Friday, the agency pointed to partnerships such as Microsoft’s investment in OpenAI and similar alliances involving Amazon, Google, and Anthropic as potentially harmful to market competition, according to TechCrunch.
FTC Chair Lina Khan warned that these collaborations could create barriers for smaller startups, limit access to crucial AI tools, and expose sensitive information. ‘These partnerships by big tech firms can create lock-in, deprive start-ups of key AI inputs, and reveal sensitive information that undermines fair competition,’ Khan stated.
The report specifically highlights the role of cloud service providers like Microsoft, Amazon, and Google, which provide essential resources such as computing power and technical expertise to AI developers. These arrangements could restrict smaller firms’ access to these critical resources, raise business switching costs, and allow cloud providers to gain unique insights into sensitive data, potentially stifling competition.
Microsoft defended its partnership with OpenAI, emphasising its benefits to the industry. ‘This collaboration has enabled one of the most successful AI startups in the world and spurred unprecedented technology investment and innovation,’ said Rima Alaily, Microsoft’s deputy general counsel. The FTC report underscores the need to address the broader implications of big tech’s growing dominance in generative AI.
Meta announced the launch of a new video editing app called Edits, set to release next month for iOS, with an Android version to follow. The app comes after ByteDance’s CapCut was removed from the Apple App Store and Google Play Store amid the ongoing TikTok ban. Instagram head Adam Mosseri shared the news on Threads, emphasising the company’s focus on providing creators with the best tools for video-making.
Edits will offer a suite of creative tools, including a dedicated inspiration tab, an idea tracker, a high-quality camera, and the ability to share drafts with collaborators. Users will also have access to insights on video performance after publishing on Instagram. Mosseri clarified that the app is geared more toward serious creators than casual video makers.
Meta has a history of launching products to fill gaps in the market, such as Instagram Reels in 2020 when TikTok was banned in India. The company likely sees Edits as an opportunity to capture video creators after CapCut’s removal, positioning itself as a key player in the video editing space. Meanwhile, competitors like Captions are also stepping up, shifting to a freemium model to attract users.
Social network X is introducing a dedicated vertical video feed for users, aiming to capitalise on the removal of ByteDance apps like TikTok and Lemon8 from US app stores. The new video tab, added to the app’s bottom bar, provides users quick access to immersive video content.
X users could scroll through short videos by tapping them in their timeline, but the new tab creates a dedicated space for videos. This marks the platform’s latest effort to enhance video experiences, following the launch of a standalone TV app last year to showcase content from creators and organisations.
As TikTok’s future in the US remains uncertain, other social networks are seizing the opportunity. Meta recently announced a video editing app, Edits, to rival ByteDance’s CapCut, while Bluesky introduced a custom feed for vertical videos, further intensifying competition in the short video market.
