Sustainable development

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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Greece plans satellite launch to boost digital strategy

Greece is poised to launch its first satellites by the end of the year, marking a significant advancement in the country’s digital strategy. Minister of Digital Governance Dimitris Papastergiou, speaking at the Innovent Forum in Larissa, outlined the ambitious plans to deploy microsatellites by late 2025. These satellites will provide critical data across various sectors, significantly enhancing the country’s digital capabilities and supporting its broader technological goals.

The new satellite program is designed to offer more precise and narrowly focused information on key areas such as natural disasters, crops, water quality, land use, and urban planning. By using advanced satellite technology, Greece aims to improve its ability to respond to environmental challenges, optimise resource management, and make more informed decisions in urban and rural planning. Papastergiou emphasised that these upgrades are essential for the country to stay ahead in a rapidly evolving digital landscape.

Alongside the satellite initiative, Papastergiou also discussed ongoing efforts to digitalise state services, tackling long-standing issues of bureaucratic red tape. He pointed to the digitisation of the national cadaster as a key example of these reforms, which are intended to streamline processes and enhance the efficiency of government operations. The minister’s remarks signal a continued push for modernising Greece’s public sector to meet the demands of the digital age.

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Polish cybersecurity to gain from Microsoft funding

Microsoft has announced plans to invest an additional $700 million in Poland, aiming to strengthen the country’s cybersecurity capabilities.

The investment will be carried out in collaboration with Poland’s armed forces, marking a significant boost in security infrastructure.

The funding forms part of the second phase of Microsoft’s earlier commitment to the region, following a $1 billion data centre project announced in 2020.

That project saw the opening of a data centre in 2023, which provides cloud services to businesses and government institutions.

Polish Prime Minister Donald Tusk joined Microsoft President Brad Smith at a press conference to discuss the plans. The investment highlights the growing importance of cybersecurity in the partnership between Microsoft and Poland.

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Meta plans the world’s longest undersea cable

Meta has announced plans for Project Waterworth, an ambitious 50,000km subsea cable system set to be the longest in the world. The infrastructure project aims to enhance global connectivity by linking the United States, India, Brazil, South Africa, and other regions. Designed with 24 fiber pairs, the system will offer significantly higher data capacity, supporting Meta’s growing AI-driven services and contributing to digital inclusion and economic growth in key markets.

The tech giant has been at the forefront of undersea cable development for over a decade, collaborating on more than 20 similar projects. With most of the world’s internet traffic reliant on such cables, concerns over security have intensified, particularly as geopolitical tensions rise. In response to recent incidents, NATO has increased surveillance of critical maritime infrastructure, while the UK is reassessing its ability to safeguard its undersea network against potential threats.

Meta plans to lay sections of the cable at depths of up to 7,000 meters and employ advanced burial techniques in high-risk areas to minimise risks. This move follows recent disruptions, such as the damage to Tonga’s undersea cable, which left much of the island in a digital blackout. Meanwhile, Meta’s decision to scale back fact-checking on Facebook and Instagram has drawn criticism, highlighting the broader implications of its expanding digital footprint.

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