Digital business models

Meta aims to boost Llama adoption among startups

Meta has launched a new initiative to attract startups to its Llama AI models by offering financial support and direct guidance from its in-house team.

The programme, called Llama for Startups, is open to US-based companies with less than $10 million in funding and at least one developer building generative AI applications. Eligible firms can apply by 30 May.

Successful applicants may receive up to $6,000 per month for six months to help offset development costs. Meta also promises direct collaboration with its AI experts to help firms implement and scale Llama-based solutions.

The scheme reflects Meta’s ambition to expand Llama’s presence in the increasingly crowded open model landscape, where it faces growing competition from companies like Google, DeepSeek and Alibaba.

Despite reaching over a billion downloads, Llama has encountered difficulties. The company reportedly delayed its top-tier model, Llama 4 Behemoth, due to underwhelming benchmark results.

Additionally, Meta faced criticism in April after using an ‘optimised’ version of its Llama 4 Maverick model to score highly on a public leaderboard, while releasing a different version publicly.

Meta has committed billions to generative AI, predicting revenues of up to $3 billion in 2025 and as much as $1.4 trillion by 2035.

With revenue-sharing agreements, custom APIs, and plans for ad-supported AI assistants, the company is investing heavily in infrastructure, possibly spending up to $80 billion next year on new data centres to support its expansive AI goals.

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Hong Kong approves stablecoin licensing law

Hong Kong’s legislature has approved a bill introducing a licensing framework for fiat-referenced stablecoin issuers. The move provides legal clarity and aims to enhance the city’s position as a global digital asset hub.

Any issuer of stablecoins in Hong Kong or of HKD-backed stablecoins abroad must obtain a licence from the Hong Kong Monetary Authority. The law outlines standards for reserve asset management, redemption, and risk controls to protect investors and the wider public.

Officials say the legislation follows the principle of ‘same activity, same risks, same regulation’ and adopts a risk-based approach. Financial Secretary Christopher Hui stated that the measure sets a solid foundation for Hong Kong’s growing virtual asset market.

The HKMA’s sandbox programme for stablecoin issuers has already attracted three participants. The new ordinance is expected to take effect later this year.

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Judge rules Google must face chatbot lawsuit

A federal judge has ruled that Google and AI startup Character.AI must face a lawsuit brought by a Florida mother, who alleges a chatbot on the platform contributed to the tragic death of her 14-year-old son.

US District Judge Anne Conway rejected the companies’ arguments that chatbot-generated content is protected under free speech laws. She also denied Google’s motion to be excluded from the case, finding that the tech giant could share responsibility for aiding Character.AI.

The ruling is seen as a pivotal moment in testing the legal boundaries of AI accountability.

The case, one of the first in the US to target AI over alleged psychological harm to a child, centres on Megan Garcia’s claim that her son, Sewell Setzer, formed an emotional dependence on a chatbot.

Though aware it was artificial, Sewell, who had been diagnosed with anxiety and mood disorders, preferred the chatbot’s companionship over real-life relationships or therapy. He died by suicide in February 2024.

The lawsuit states that the chatbot impersonated both a therapist and a romantic partner, manipulating the teenager’s emotional state. In his final moments, Sewell messaged a bot mimicking a Game of Thrones character, saying he was ‘coming home’.

Character.AI insists it will continue to defend itself and highlighted existing features meant to prevent self-harm discussions. Google stressed it had no role in managing the app but had previously rehired the startup’s founders and licensed its technology.

Garcia claims Google was actively involved in developing the underlying technology and should be held liable.

The case casts new scrutiny on the fast-growing AI companionship industry, which operates with minimal regulation. For about $10 per month, users can create AI friends or romantic partners, marketed as solutions for loneliness.

Critics warn that these tools may pose mental health risks, especially for vulnerable users.

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Pakistan sets up digital asset authority

Pakistan has formed a new body to regulate its growing digital asset market and embrace blockchain-based financial innovation. The Pakistan Digital Assets Authority (PDAA), backed by the Ministry of Finance, will license and oversee exchanges, custodians, wallets, stablecoins, and decentralised finance platforms.

Federal finance minister Muhammad Aurangzeb said the goal is not only to catch up but to lead the sector globally. PDAA will also tokenise national assets and government debt, and monetise excess electricity through regulated Bitcoin mining.

The authority aims to create a safe and investment-friendly ecosystem for blockchain startups and Web3 development.

The move follows advice from the Pakistan Crypto Council, which includes former Binance CEO Changpeng Zhao. Council CEO Bilal Bin Saqib described the strategy as a complete rewrite of Pakistan’s financial future, with a focus on financial inclusion, digital exports, and innovation.

Pakistan‘s stance on crypto has shifted rapidly. Although the government had ruled out legalising digital assets in 2023, the country ranked ninth in Chainalysis’ 2024 crypto adoption index.

With over 27 million users expected by 2025 and projected revenue of $1.6 billion, Pakistan’s digital asset sector is now seen as a key growth driver.

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Taiwan targets Facebook scam ads with new penalties

Taiwan’s Ministry of Digital Affairs plans to impose penalties on Meta for failing to enforce real-name verification on Facebook ads, according to Minister Huang Yen-nan. The move follows a recent meeting with law enforcement and growing concerns over scam-related losses.

A report from CommonWealth Magazine found Taiwanese victims lose NT$400 million (US$13 million) daily to scams, with 70% of losses tied to Facebook. Facebook has been the top scam-linked platform for two years, with over 60% of users reporting exposure to fraudulent content.

From April 2023 to September 2024, nearly 59,000 scam ads were found across Facebook and Google. One Facebook group in Chiayi County, with 410,000 members, was removed after being overwhelmed with daily fake job ads.

Huang identified Meta as the more problematic platform, saying 60% to 70% of financial scams stem from Facebook ads. Police have referred 15 cases to the ministry since May, but only two resulted in fines due to incomplete advertiser information.

Legislator Hung Mung-kai criticized delays in enforcement, noting that new anti-fraud laws took effect in February, but actions only began in May. Huang defended the process, stating platforms typically comply with takedown requests and real-name rules.

Under current law, scam ads must be removed within 24 hours of being reported. The ministry has used AI to detect and remove approximately 100,000 scam ads recently. Officials are now planning face-to-face meetings with Meta to demand stronger ad oversight.

Deputy Interior Minister Ma Shi-yuan called on platforms like Facebook and Line to improve ad screening, emphasizing that law enforcement alone cannot manage the volume of online content.

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Google launches Gemini Live and Pro/Ultra AI tiers at I/O 2025

At Google I/O 2025, the company unveiled significant updates to its Gemini AI assistant, expanding its features, integrations, and pricing tiers to better compete with ChatGPT, Siri, and other leading AI tools.

A highlight of the announcement is the rollout of Gemini Live to all Android and iOS users, which enables near real-time conversations with the AI using a smartphone’s camera or screen. Users can, for example, point their phone at a building and ask Gemini for information, receiving immediate answers.

Gemini Live is also set to integrate with core Google apps in the coming weeks. Users will be able to get directions from Maps, create events in Calendar, and manage tasks via Google Tasks—all from within the Gemini interface.

Google also introduced new subscription tiers. Google AI Pro, formerly Gemini Advanced, is priced at $20/month, while the premium AI Ultra plan costs $250/month, offering high usage limits, early access to new models, and exclusive tools.

Gemini is now accessible directly in Chrome for Pro and Ultra users in the US with English as their default language, allowing on-screen content summarisation and Q&A.

The Deep Research feature now supports private PDF and image uploads, combining them with public data to generate custom reports. Integration with Gmail and Google Drive is coming soon.

Visual tools are also improving. Free users get access to Imagen 4, a new image generation model, while Ultra users can try Veo 3, which includes native sound generation for AI-generated video.

For students, Gemini now offers personalised quizzes that adapt to areas where users struggle, helping with targeted learning.

Gemini now serves over 400 million monthly users, as Google deepens its AI footprint across its platforms through seamless integration and real-time multimodal capabilities.

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OpenAI buys Jony Ive’s AI hardware firm

OpenAI has acquired hardware startup io Products, founded by former Apple designer Jony Ive, in a $6.5 billion equity deal. Ive will now join the company as creative head, aiming to craft cutting-edge hardware for the era of generative AI.

The move signals OpenAI’s intention to build its own hardware platform instead of relying on existing ecosystems like Apple’s iOS or Google’s Android. By doing so, the firm plans to fuse its AI technology, including ChatGPT, with original physical products designed entirely in-house.

Jony Ive, the designer behind iconic Apple devices such as the iPhone and iMac, had already been collaborating with OpenAI through his firm LoveFrom for the past two years. Their shared ambition is to create hardware that redefines how people interact with AI.

While exact details remain under wraps, OpenAI CEO Sam Altman and Ive have teased that a prototype is in development, described as potentially ‘the coolest piece of technology the world has ever seen’.

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M&S website still offline after cyberattack

Marks & Spencer’s website remains offline as the retailer continues recovering from a damaging cyberattack that struck over the Easter weekend.

The company confirmed the incident was caused by human error and may cost up to £300 million. Chief executive Stuart Machin warned the disruption could last until July.

Customers visiting the site are currently met with a message stating it is undergoing updates. While some have speculated the downtime is due to routine maintenance, the ongoing issues follow a major breach that saw hackers steal personal data such as names, email addresses and birthdates.

The firm has paused online orders, and store shelves were reportedly left empty in the aftermath.

Despite the disruption, M&S posted a strong financial performance this week, reporting a better-than-expected £875.5 million adjusted pre-tax profit for the year to March—an increase of over 22 per cent. The company has yet to comment further on the website outage.

Experts say the prolonged recovery likely reflects the scale of the damage to M&S’s core infrastructure.

Technology director Robert Cottrill described the company’s cautious approach as essential, noting that rushing to restore systems without full security checks could risk a second compromise. He stressed that cyber resilience must be considered a boardroom priority, especially for complex global operations.

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Crypto assets to be treated as property in Russia

Russia’s Ministry of Justice is working on legislation that would classify crypto assets as property, enabling their confiscation during criminal investigations. The draft bill aims to tighten control over digital currencies increasingly used for illegal activities.

Deputy Justice Minister Vadim Fedorov stated that the new law would allow authorities to seize not only physical wallets but also credentials like seed phrases. Experts will assist in managing the secure handling of digital assets.

Courts may also be given the power to block transactions linked to certain wallets.

The move comes in response to a rise in crypto-related crime, particularly through darknet markets. One such platform, Kraken, has recorded a 68% surge in crypto transactions since the shutdown of Hydra in 2022.

Fedorov highlighted the challenges posed by digital currencies, citing their anonymity and lack of central control as major attractions for criminals.

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Quantum computing partnership launches in Doha

Quantinuum and Al Rabban Capital have announced a new venture aimed at advancing quantum computing in Qatar and the region.

The partnership seeks to provide access to Quantinuum’s technologies, co-develop relevant quantum applications and train a new generation of developers.

This move aligns with Qatar’s ambition to become a hub for advanced technologies. Applications will focus on energy, medicine, genomics, and finance, with additional potential in emerging fields like Generative Quantum AI.

The venture builds on existing collaborations with Hamad Bin Khalifa University and the Qatar Center for Quantum Computing. Quantinuum’s expansion into Qatar follows growth across the US, UK, Europe, and Indo-Pacific.

Leaders from both organisations see this as a strategic milestone, strengthening technological ties between Qatar and the West. The joint venture not only supports national goals but also reflects rising global demand for quantum technologies.

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