Digital business models Archives | Page 413 of 571

Gemini user surge trails ChatGPT and Meta AI

Google’s Gemini AI chatbot has rapidly gained popularity, reaching over 350 million global users by March 2025.

The milestone was revealed during testimony in the ongoing US antitrust trial against Google, where the company is facing scrutiny over its dominance in the search market.

Daily active users of the app have surged to more than 35 million, a significant leap from just nine in October 2024.

The rise in Gemini’s adoption may be linked to its integration with Samsung devices, Google Workspace, and Chrome. In the past year, Google also rolled out improved versions of the chatbot — Gemini 2.0 and Gemini 2.5 — which have reportedly enhanced its capabilities.

Despite the growth, Gemini still trails OpenAI’s ChatGPT and Meta’s AI assistant, which reported 600 million and 500 million monthly active users, respectively.

Testimony in court also revealed Google pays substantial sums to Samsung to pre-install Gemini on its devices, raising further concerns about the company’s dominance.

The current phase of the trial focuses on potential penalties for Google after a 2024 ruling found its search engine to be an illegal monopoly.

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Trump threatens new tariffs within weeks

President Trump has signalled a potential early end to the current 90-day pause on tariffs for countries and companies not actively seeking trade agreements with the US.

While markets initially reacted positively to signs of easing tension with China, that optimism was short-lived as the administration quickly shifted direction.

Instead of waiting out the full pause period, Trump now suggests new tariffs could be imposed within two to three weeks, with rates possibly rising from 10% to as high as 50%.

The lack of clarity over which nations or firms are targeted adds further uncertainty. Although officials initially claimed around 90 countries were engaged in trade talks, that number reportedly dropped to just 15.

A vagueness like this, combined with the unpredictable nature of US tariff policy, has unsettled international markets and raised alarm across global supply chains.

Apple, among others, has managed to avoid immediate price hikes thanks to temporary exemptions and strategic stock management. However, those exemptions are due to expire shortly, leaving the company vulnerable to rising costs.

Instead of facing only Chinese tariffs, Apple may now contend with broader duties on semiconductors and products manufactured outside China.

If tariff relief fails to materialise soon, consumers could see higher prices on future Apple products, including the upcoming iPhone 17.

Without a clearer and more consistent trade strategy from the White House, global firms may struggle to adapt, and the fragile economic recovery could face renewed strain.

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BMW partners with DeepSeek for in-car AI features

BMW has announced plans to integrate AI developed by China’s DeepSeek into its vehicles sold in the Chinese market.

The announcement was made by CEO Oliver Zipse during the Shanghai Auto Show, aligning BMW with local brands such as Geely and Zeekr that have adopted similar AI technologies.

The DeepSeek-R1 model has been increasingly used across Chinese automotive sector to power intelligent cockpit systems, voice controls, and driving assistance.

Geely showcased its ‘Full-Domain AI for Smart Vehicles’, which includes AI-powered chassis control and driver interaction capabilities.

DeepSeek’s influence extends beyond automotive applications, with its technology now used in Chinese courtrooms, healthcare, and customer service.

A successor model, DeepSeek-R2, is expected soon and promises multilingual reasoning and enhanced coding capabilities, rivalling Western counterparts.

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Baidu rolls out new AI agent Xinxiang for Android

Chinese tech giant Baidu has launched a new AI agent, Xinxiang, aimed at enhancing user productivity by assisting with tasks such as information analysis and travel planning.

The tool is currently available on Android devices, with an iOS version still under review by Apple.

According to Baidu, Xinxiang represents a shift from traditional chatbot interactions towards a more task-focused AI experience, providing streamlined assistance tailored to practical needs.

The move reflects growing competition in China’s rapidly evolving AI market.

However, the launch highlights Baidu’s ambition to stay ahead in AI innovation and offer tools that integrate seamlessly into everyday digital life.

As regulatory reviews continue, the success of Xinxiang may depend on user adoption and the speed at which it becomes available across platforms.

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xAI launches Grok Vision with real-time sight and multilingual features

Elon Musk’s AI venture, xAI, has taken another leap forward with the rollout of Grok Vision, a real-time camera-based analysis tool for its Grok chatbot.

Available for free on Android and iOS, the new feature allows users to point their phone cameras at objects, texts, or environments and receive instant explanations or answers.

Whether it’s a business card, a street sign, or a symbol, Grok can interpret and respond to visual input on the spot.

The update aligns Grok with visual capabilities already offered by competitors like OpenAI’s ChatGPT and Google Gemini.

In addition to visual analysis, xAI has introduced multilingual audio responses and real-time voice search.

Users can now ask Grok questions aloud and receive spoken responses, as well as interact with the chatbot in more languages, including Hindi, Spanish, and Japanese.

These features are part of the SuperGrok subscription plan, priced at $30 per month, and it remains unclear whether they will eventually be made available to free users.

xAI is also focusing on making Grok more intuitive and personalised. A newly added memory function allows the chatbot to remember previous user interactions, tailoring responses based on personal history and preferences.

This development enhances Grok’s ability to deliver context-aware replies and could significantly shift how users experience conversational AI.

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OpenAI partners with major news outlets

OpenAI has signed multiple content-sharing deals with major media outlets, including Politico, Vox, Wired, and Vanity Fair, allowing their content to be featured in ChatGPT.

As part of the deal with The Washington Post, ChatGPT will display summaries, quotes, and links to the publication’s original reporting in response to relevant queries. OpenAI has secured similar partnerships with over 20 news publishers and 160 outlets in 20 languages.

The Washington Post’s head of global partnerships, Peter Elkins-Williams, emphasised the importance of meeting audiences where they are, ensuring ChatGPT users have access to impactful reporting.

OpenAI’s media partnerships head, Varun Shetty, noted that more than 500 million people use ChatGPT weekly, highlighting the significance of these collaborations in providing timely, trustworthy information to users.

OpenAI has worked to avoid criticism related to copyright infringement, having previously faced legal challenges, particularly from the New York Times, over claims that chatbots were trained on millions of articles without permission.

While OpenAI sought to dismiss these claims, a US district court allowed the case to proceed, intensifying scrutiny over AI’s use of news content.

Despite these challenges, OpenAI continues to form agreements with leading publications, such as Hearst, Condé Nast, Time magazine, and Vox Media, helping ensure their journalism reaches a wider audience.

Meanwhile, other publications have pursued legal action against AI companies like Cohere for allegedly using their content without consent to train AI models.

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The EU Commission hits Apple and Meta with draconian fines

The European Commission has fined tech giants Apple and Meta a combined €700 million, marking the first penalties under the EU’s Digital Markets Act (DMA).

The act, designed to rein in the dominance of the world’s largest online platforms, targets practices that the EU considers harmful to consumer choice and digital competition.

Apple case

Apple received a €500 million fine for its App Store’s restrictive ‘steering terms,’ which the Commission found fail to allow users to discover better offers on other marketplaces.

Apple defended its position, calling the EU’s decision an unfair attack on its business model and pledging to appeal.

Meta case

Meta was fined €200 million for its controversial ‘pay or consent’ model introduced on Facebook and Instagram in the EU in late 2023.

The Commission argued that Meta’s practice of forcing users to accept the combination of their data for targeted advertising breaches privacy rights under the DMA.

Meta responded sharply, accusing the EU of targeting successful American firms while giving a pass to their European and Chinese counterparts.

Larger context:

The fines come when transatlantic tensions over trade and regulation escalate.

Although the European Commission insists the sanctions are unrelated to US-EU trade disputes, the White House has previously warned that such actions would face scrutiny and could prompt retaliatory tariffs.

Both Apple and Meta now have 60 days to comply with the rulings or face additional penalty payments.

Despite the regulatory significance of the decision, the announcement was delivered via press release, with key EU officials overseeing the DMA absent.

Their absence sparked questions about political coordination and timing, especially given recent US visits by EU leaders and ongoing diplomatic friction over digital regulation.

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OpenAI eyes Chrome in bid to boost ChatGPT

OpenAI has expressed interest in acquiring Google’s Chrome browser if it were to be made available, viewing it as a potential boost for its AI platform, ChatGPT.

The remarks, made by Nick Turley, head of product for ChatGPT, surfaced during the US Department of Justice’s antitrust trial against Google. The case follows a 2023 ruling that found Google had maintained an illegal monopoly in online search and advertising.

Although Google has shown no intention to sell Chrome and plans to appeal, the DoJ has suggested the move as a remedy to restore competition.

Turley disclosed that OpenAI previously approached Google to use its search technology within ChatGPT, after facing limitations with Microsoft Bing, its current provider.

An email from OpenAI presented in court showed the company proposed using multiple partners, including Google’s search API, to improve the chatbot’s performance. Google, however, declined the request, citing fears of empowering rivals.

Turley confirmed there is currently no partnership with Google and noted that ChatGPT remains years away from answering most queries using its own search system.

The testimony also highlighted OpenAI’s distribution challenges. Turley voiced concerns over being shut out of key access points controlled by major tech firms, such as browsers and app stores.

While OpenAI secured integration with Apple’s iPhones, it has struggled to achieve similar placements on Android devices. Turley argued that forcing Google to share search data with competitors could instead speed up ChatGPT’s development and improve user experience.

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Chinese AI sector eyes Huawei’s powerful 910C chip

Huawei is preparing to begin large-scale shipments of its new AI chip, the 910C, as early as next month.

The move is seen as a critical development in China’s ongoing effort to reduce reliance on US technology, especially after recent export restrictions on Nvidia’s H20 chip.

The 910C delivers performance on par with Nvidia’s H100 by combining two of Huawei’s earlier 910B chips in a single integrated package.

These enhancements, which include increased computing power and memory capacity, have attracted interest from Chinese AI developers scrambling for alternatives.

Despite Huawei’s refusal to confirm the reports, sources say sample shipments have already taken place. Some chips are being produced domestically using SMIC’s 7nm process, while others may involve components originally manufactured by TSMC, raising fresh regulatory scrutiny.

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SK Telecom probes cyberattack after weekend breach

SK Telecom, South Korea’s largest mobile operator, has confirmed that hackers breached its internal systems, possibly exposing sensitive data linked to USIM cards.

The company discovered the intrusion late Saturday night and responded swiftly by removing malware and isolating affected equipment.

Investigations are underway, with the Korea Internet & Security Agency and the Ministry of Science and ICT examining the breach’s scope and root cause.

Officials have asked SK Telecom to preserve evidence and cooperate with technical experts sent to the site.

In response, SK Telecom is boosting defences against USIM-related fraud and offering a free protection service to concerned users.

Legal consequences could follow if the breach is found to have violated data protection laws, with potential fines reaching up to 3 percent of related revenue or 50 million won.

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