Digital business models Archives | Page 377 of 581

AI avatar replaces CEO in Klarna’s update

Klarna CEO Sebastian Siemiatkowski recently used an AI-generated avatar to deliver the company’s quarterly earnings report, marking a bold step in the fintech firm’s ongoing integration of AI.

Though the avatar’s performance revealed minor flaws, such as awkward blinking and voice syncing issues, the presentation showcased Klarna’s broader commitment to using AI across both operations and communications.

The Swedish firm has credited AI-driven efficiencies and a 40% workforce reduction for sustaining profitability and increasing revenue per employee to nearly US$1 million.

These advances build on years of investment in machine learning, which began with personalised checkout systems and now underpin core services like fraud detection and customer support.

By using an AI avatar in a leadership role, Klarna signals its belief in AI not only as a business tool but also as a viable medium for engaging investors. As the company prepares for its IPO, this move underscores its technological focus and willingness to redefine fintech communication norms.

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Apple sues European Commission over DMA interoperability ruling

Apple is mounting a legal challenge against the European Commission after being ordered to open up its tightly controlled ecosystem to rival companies under the Digital Markets Act (DMA).

The tech giant filed its appeal with the EU’s General Court, claiming the decision would undermine user privacy and harm innovation.

The dispute centres on a March ruling by the Commission following months of dialogue, which concluded that Apple must guarantee interoperability—a requirement that would allow third-party developers to connect non-Apple products, such as smartwatches and headphones, to iPhones and iPads.

Apple has pushed back strongly, arguing that the mandate is ‘unreasonable, costly and stifles innovation.’ A company spokesperson said the move would benefit what Apple describes as ‘data-hungry companies’ like Meta and Samsung, who could gain access to users’ most sensitive data through third-party connections.

Since December 2024, the European Commission has been pressing Apple to make its ecosystem more open to promote competition across the digital sector. However, Apple maintains that complying with the order would compromise the company’s privacy-first approach and violate its data protection standards.

The Commission, meanwhile, insists the measures are proportionate and fully aligned with the EU’s stringent privacy and security framework. It argues that the order would not strip Apple of control over its devices, but rather enable fairer access for other tech players while keeping user protections intact.

The case is set to become a major test of how far the EU can push tech giants to comply with the Digital Markets Act, which was designed to curb the dominance of so-called ‘gatekeepers’ in digital markets.

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G42 and Mistral team up to build AI platforms

Abu Dhabi-based tech company G42 has partnered with French startup Mistral AI to co-develop advanced AI platforms and infrastructure across Europe, the Middle East, and the Global South.

The collaboration aims to span the full AI value chain, from model training to sector-specific applications, combining Mistral’s open-weight language models with G42’s infrastructure expertise.

The deal builds on prior AI cooperation agreements endorsed by UAE President Sheikh Mohamed bin Zayed and French President Emmanuel Macron, reinforcing both countries’ shared ambition to lead in AI innovation.

G42 subsidiaries Core42 and Inception will support the initiative by contributing technical development and deployment capabilities.

This partnership is part of a broader UAE strategy to position itself as a global AI hub and diversify its economy beyond oil. With AI expected to add up to $91 billion to the UAE’s economy by 2030, such international alliances reflect a shift in AI power centres toward the Middle East.

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Reddit accuses Anthropic of misusing user content

Reddit has taken legal action against AI startup Anthropic, alleging that the company scraped its platform without permission and used the data to train and commercialise its Claude AI models.

The lawsuit, filed in San Francisco’s Superior Court, accuses Anthropic of breaching contract terms, unjust enrichment, and interfering with Reddit’s operations.

According to Reddit, Anthropic accessed the platform more than 100,000 times despite publicly claiming to have stopped doing so.

The complaint claims Anthropic ignored Reddit’s technical safeguards, such as robots.txt files, and bypassed the platform’s user agreement to extract large volumes of user-generated content.

Reddit argues that Anthropic’s actions undermine its licensing deals with companies like OpenAI and Google, who have agreed to strict content usage and deletion protocols.

The filing asserts that Anthropic intentionally used personal data from Reddit without ever seeking user consent, calling the company’s conduct deceptive. Despite public statements suggesting respect for privacy and web-scraping limitations, Anthropic is portrayed as having disregarded both.

The lawsuit even cites Anthropic’s own 2021 research that acknowledged Reddit content as useful in training AI models.

Reddit is now seeking damages, repayment of profits, and a court order to stop Anthropic from using its data further. The market responded positively, with Reddit’s shares closing nearly 67% higher at $118.21—indicating investor support for the company’s aggressive stance on data protection.

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OpenAI and India plan AI infrastructure push

OpenAI is in discussions with the Indian government to collaborate on data centre infrastructure as part of its new global initiative, ‘OpenAI for Countries’.

The programme aims to help partner nations expand AI capabilities through joint investment and strategic coordination with the US. India could become one of the ten initial countries in the effort, although specific terms remain under wraps.

During a visit to Delhi, OpenAI’s chief strategy officer Jason Kwon emphasised India’s potential, citing the government’s clear focus on infrastructure and AI talent.

Similar to the UAE’s recently announced Stargate project in Abu Dhabi, India may host large-scale AI computing infrastructure while also investing in the US under the same framework.

To nurture AI skills, OpenAI and the Ministry of Electronics and IT’s IndiaAI Mission launched the ‘OpenAI Academy’. It marks OpenAI’s first international rollout of its educational platform.

The partnership will provide free access to AI tools, developer training, and events, with content in English, Hindi, and four additional regional languages. It will also support government officials and startups through dedicated learning platforms.

The collaboration includes hackathons, workshops in six cities, and up to $100,000 in API credits for selected IndiaAI fellows and startups. The aim is to accelerate innovation and help Indian developers and researchers scale AI solutions more efficiently, according to IT Minister Ashwini Vaishnaw.

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New SEC chief promises clear crypto rules

New SEC Chairman Paul Atkins has committed to creating a clear regulatory framework for the crypto sector. He aims to replace ambiguity with investor protection and support for innovation.

Speaking before the Senate Appropriations Subcommittee on 3 June, he said outdated and unclear rules have held the industry back.

Atkins stressed that his approach would end the former administration’s ‘regulation-by-enforcement’ model. He plans to use structured rulemaking, with notice-and-comment procedures guiding the creation of clear, tailored regulations for the crypto market.

He also reaffirmed support for the recently launched Crypto Task Force. Atkins praised the leadership of Commissioners Uyeda and Hester Peirce, often referred to as ‘crypto mom’, adding that the SEC’s divisions would act swiftly to provide regulatory certainty.

Appointed under the Trump administration’s crypto-friendly agenda, Atkins’ policy direction signals a significant shift. It embraces digital asset innovation while ensuring strong investor safeguards.

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Gmail accounts at risk as attacks rise

Google has urged Gmail users to upgrade their account security after revealing that over 60% have been targeted by cyberattacks. Despite the increasing threat, most people still rely on outdated protections like passwords and SMS-based two-factor authentication.

Google is now pushing users to adopt passkeys and social sign-ins to improve their defences. Passkeys offer phishing-resistant access and use biometric methods such as fingerprint or facial recognition tied to a user’s device, removing the need for traditional passwords.

While digitally savvy Gen Z users are more likely to adopt these new methods, but many still reuse passwords, leaving their accounts exposed to breaches and scams. Google emphasised that passwords are both insecure and inconvenient and called on users to switch to tools that offer stronger protection.

Microsoft, meanwhile, has gone even further by encouraging users to eliminate passwords entirely. Google’s long-term goal is to simplify sign-ins while increasing security across its platforms.

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Europe gets new cybersecurity support from Microsoft

Microsoft has launched a free cybersecurity initiative for European governments aimed at countering increasingly sophisticated cyber threats powered by AI. Company President Brad Smith said Europe would benefit from tools already developed and deployed in the US.

The programme is designed to identify and disrupt AI-driven threats, including deepfakes and disinformation campaigns, which have previously been used to target elections and undermine public trust.

Smith acknowledged that AI is a double-edged sword, with malicious actors exploiting it for attacks, while defenders increasingly use it to stay ahead. Microsoft continues to monitor how its AI products are used, blocking known cybercriminals and working to ensure AI serves as a stronger shield than weapon.

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WhatsApp to add usernames for better privacy

WhatsApp is preparing to introduce usernames, allowing users to hide their phone numbers and opt for a unique ID instead. Meta’s push reflects growing demand for more secure and anonymous communication online.

Currently in development and not yet available for testing, the new feature will let users create usernames with letters, numbers, periods, and underscores, while blocking misleading formats like web addresses.

The move aims to improve privacy by letting users connect without revealing personal contact details. A system message will alert contacts whenever a username is updated, adding transparency to the process.

Although still in beta, the feature is expected to roll out soon, bringing WhatsApp in line with other major messaging platforms that already support username-based identities.

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Trump-Musk rift shakes crypto and markets

Bitcoin exchange-traded funds in the United States faced $278 million in outflows on 5 June, reversing gains made earlier in the week. The shift followed a public feud between Donald Trump and Elon Musk, sparking wider uncertainty across markets.

The Cryptocurrency Fear & Greed Index dropped to ‘Fear’ on 6 June, as both Tesla and Trump Media shares also fell sharply.

The recent ETF downturn added to previous losses totalling $1.2 billion between 29 May and 2 June. Among the hardest hit was ARK 21Shares Bitcoin ETF, which recorded $102 million in outflows. No Bitcoin ETFs saw any inflows that day, highlighting investor caution.

In contrast, Ether ETFs continued their positive run with $11.3 million in inflows on 5 June, extending a 14-day streak. Although inflows were lower than earlier in the week, interest in Ether remains strong, supported by network upgrades and robust ETH futures activity.

Institutional interest also persists, with BlackRock acquiring $50 million worth of Ether on 3 June. Meanwhile, global Bitcoin ETPs saw net outflows of $8 million over the past week, suggesting that Bitcoin is facing a temporary setback while Ether enjoys relative strength.

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