Digital business models

Microsoft unveils powerful lightweight AI model for CPUs

Microsoft researchers have introduced the largest 1-bit AI model to date, called BitNet b1.58 2B4T, designed to run efficiently on standard CPUs instead of relying on GPUs. This ‘bitnet’ model, now openly available under the MIT license, can even operate on Apple’s M2 chips.

Bitnets use extreme weight quantisation, storing only -1, 0, or 1 as values, making them far more memory- and compute-efficient than most conventional models.

With 2 billion parameters and trained on 4 trillion tokens, roughly the equivalent of 33 million books, BitNet b1.58 2B4T outperforms several similarly sized models in key benchmarks.

Microsoft claims it beats Meta’s Llama 3.2 1B, Google’s Gemma 3 1B, and Alibaba’s Qwen 2.5 1.5B on tasks like grade-school maths and physical reasoning. It also runs up to twice as fast while using significantly less memory, offering a potential edge for lower-end or energy-constrained devices.

The main limitation lies in its dependence on Microsoft’s custom bitnet.cpp framework, which supports only select hardware and does not yet work with GPUs.

Instead of being broadly compatible with existing AI systems, BitNet’s performance depends on a narrower infrastructure, a hurdle that may limit adoption, despite its promise for lightweight AI deployment.

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New Apple AI model uses private email comparisons

Apple has outlined a new approach to improving its AI features by privately analysing user data with the help of synthetic data. The move follows criticism of the company’s AI products, especially notification summaries, which have underperformed compared to competitors.

The new method relies on ‘differential privacy,’ where Apple generates synthetic messages that resemble real user data without containing any actual content.

These messages are used to create embeddings—abstract representations of message characteristics—which are then compared with real emails on user’ devices that have opted in to share analytics.

Devices send back signals indicating which synthetic data most closely matches real content, without sharing the actual messages with Apple.

Apple said the technique is already being used to improve its Genmoji models and will soon be applied to other features, including Image Playground, Image Wand, Memories Creation, Writing Tools, and Visual Intelligence.

The company also confirmed plans to improve email summaries using the same privacy-focused method, aiming to refine its AI tools while maintaining a strong commitment to user data protection.

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Japan tells Google to stop Android search dominance

Japanese regulators have accused Google of breaching the country’s anti-monopoly laws by restricting competition through the pre-installation of its search engine on Android smartphones.

The Japan Fair Trade Commission (JFTC) issued a cease and desist order on Tuesday, directing the US tech giant to halt the practice.

Google Japan called the move ‘regrettable’ and emphasised its long-standing investment in Japan to support innovation. The company has not yet indicated whether it will appeal the ruling.

The JFTC’s investigation began in 2023, with input from overseas regulators handling similar concerns in the United States and Europe.

This marks the first time the JFTC has taken such action against a major global technology firm. It follows global scrutiny of Google’s dominance, including a US court ruling last year that found Google had unfairly used its market power to suppress rivals.

European authorities have also raised similar concerns, accusing the company of monopolistic behaviour.

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Europe struggles to explain quantum to its citizens

Most Europeans remain unclear about quantum technology, despite increasing attention from EU leaders. A new survey, released on World Quantum Day, reveals that while 78 per cent of adults in France and Germany are aware of quantum, only a third truly understand what it is.

Nearly half admitted they had heard of the term but didn’t know what it means.

Quantum science studies the smallest building blocks of the universe, particles like electrons and atoms, that behave in ways classical physics can’t explain. Though invisible even to standard microscopes, they already power technologies such as GPS, MRI scanners and semiconductors.

Quantum tools could lead to breakthroughs in healthcare, cybersecurity, and climate change, by enabling ultra-precise imaging, improved encryption, and advanced environmental monitoring.

The survey showed that 47 per cent of respondents expect quantum to positively impact their country within five years, with many hopeful about its role in areas like energy, medicine and fraud prevention.

For example, quantum computers might help simulate complex molecules for drug development, while quantum encryption could secure communications better than current systems.

The EU has committed to developing a European quantum chip and is exploring a potential Quantum Act, backed by €65 million in funding under the EU Chips Act. The UK has pledged £121 million for quantum initiatives.

However, Europe still trails behind China and the US, mainly due to limited private investment and slower deployment. Former ECB president Mario Draghi warned that Europe must build a globally competitive quantum ecosystem instead of falling behind further.

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Google uses AI and human reviews to fight ad fraud

Google has revealed it suspended 39.2 million advertiser accounts in 2024, more than triple the number from the previous year, as part of its latest push to combat ad fraud.

The tech giant said it is now able to block most bad actors before they even run an advert, thanks to advanced large language models and detection signals such as fake business details and fraudulent payments.

Instead of relying solely on AI, a team of over 100 experts from across Google and DeepMind also reviews deepfake scams and develops targeted countermeasures.

The company rolled out more than 50 LLM-based safety updates last year and introduced over 30 changes to advertising and publishing policies. These efforts, alongside other technical reinforcements, led to a 90% drop in reports of deepfake ads.

While the US saw the highest number of suspensions, with all 39.2 million accounts coming from there alone, India followed with 2.9 million accounts taken down. In both countries, ads were removed for violations such as trademark abuse, misleading personalisation, and financial service scams.

Overall, Google blocked 5.1 billion ads globally and restricted another 9.1 billion, instead of allowing harmful content to spread unchecked. Nearly half a billion of those removed were linked specifically to scam activity.

In a year when half the global population headed to the polls, Google also verified over 8,900 election advertisers and took down 10.7 million political ads.

While the scale of suspensions may raise concerns about fairness, Google said human reviews are included in the appeals process.

The company acknowledged previous confusion over enforcement clarity and is now updating its messaging to ensure advertisers understand the reasons behind account actions more clearly.

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ChatGPT gains new tool for image access

OpenAI has introduced a new image library feature for ChatGPT, allowing users to easily access and manage their AI-generated images. The feature is now rolling out to Free, Plus, and Pro users across both mobile and web platforms.

The new library appears in the ChatGPT sidebar under a ‘Library’ section, where users can browse a visual grid of their previously created images. A quick-access button also lets users generate new images directly from the same screen.

While the feature is already available in the iOS app, some users report it has not yet reached the web version, though its arrival is expected soon.

Designed to improve image accessibility and organisation, the feature will be especially useful for those who regularly create visuals through ChatGPT. Whether users are revisiting whimsical creations or practical graphics, the image library offers a convenient way to view and manage their visual content.

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EU plans major staff boost for digital rules

The European Commission is ramping up enforcement of its Digital Services Act (DSA) by hiring 60 more staff to support ongoing investigations into major tech platforms. Despite beginning probes into companies such as X, Meta, TikTok, AliExpress and Temu since December 2023, none have concluded.

The Commission currently has 127 employees working on the DSA and aims to reach 200 by year’s end. Applications for the new roles, including legal experts, policy officers, and data scientists, remain open until 10 May.

The DSA, which came into full effect in February last year, applies to all online platforms in the EU. However, the 25 largest platforms, those with over 45 million monthly users like Google, Amazon, and Shein, fall under the direct supervision of the Commission instead of national regulators.

The most advanced case is against X, with early findings pointing to a lack of transparency and accountability.

The law has drawn criticism from the current Republican-led US government, which views it as discriminatory. Brendan Carr of the US Federal Communications Commission called the DSA ‘an attack on free speech,’ accusing the EU of unfairly targeting American companies.

In response, EU Tech Commissioner Henna Virkkunen insisted the rules are fair, applying equally to platforms from Europe, the US, and China.

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Inephany raises $2.2M to make AI training more efficient

London-based AI startup Inephany has secured $2.2 million in pre-seed funding to develop technology aimed at making the training of neural networks—particularly large language models—more efficient and affordable.

The investment round was led by Amadeus Capital Partners, with participation from Sure Valley Ventures and AI pioneer Professor Steve Young, who joins as both chair and angel investor.

Founded in July 2024 by Dr John Torr, Hami Bahraynian, and Maurice von Sturm, Inephany is building an AI-driven platform that improves training efficiency in real time.

By increasing sample efficiency and reducing computing demands, the company hopes to dramatically cut the cost and time of training cutting-edge models.

The team claims their solution could make AI model development at least ten times more cost-effective compared to current methods.

The funding will support growth of Inephany’s engineering team and accelerate the launch of its first product later this year.

With the costs of training state-of-the-art models now reaching into the hundreds of millions, the startup’s platform aims to make high-performance AI development more sustainable and accessible across industries such as healthcare, weather forecasting, and drug discovery.

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FTC challenges Meta’s dominance in social media trial

Mark Zuckerberg has defended Meta’s high-profile acquisitions of Instagram and WhatsApp during testimony in a major antitrust trial brought by the US Federal Trade Commission.

On the stand for a second day, the Meta CEO admitted the company could have developed its own rival to Instagram, but noted that building successful apps is extremely difficult.

Emails presented by the FTC showed Zuckerberg expressing concern about Instagram’s rapid growth in 2012 and WhatsApp’s dominance in messaging before both were bought by Meta.

The FTC argues that Meta unfairly stifled competition by acquiring its closest rivals instead of innovating independently. It is pushing for the breakup of Meta, saying that platforms like Instagram might have become major standalone competitors.

Zuckerberg, however, claimed that competition in the social media space remains intense, pointing to platforms such as TikTok, YouTube, and X. He insisted that Instagram was acquired mainly for its advanced camera technology, not to eliminate a competitor.

Emails from 2018 suggest that Zuckerberg anticipated future regulatory scrutiny and even considered the possibility of spinning off the company’s acquisitions.

The antitrust trial, set to last several weeks, will feature testimony from key industry figures including Sheryl Sandberg and Instagram co-founder Kevin Systrom. If the court rules in favour of the FTC, a second phase will determine how to dismantle the alleged monopoly.

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AI chip production begins at TSMC’s Arizona facility

Nvidia has announced a major initiative to produce AI supercomputers in the US in collaboration with Taiwan Semiconductor Manufacturing Co. (TSMC) and several other partners.

The effort aims to create up to US$500 billion worth of AI infrastructure products domestically over the next four years, marking a significant shift in Nvidia’s manufacturing strategy.

Alongside TSMC, other key contributors include Taiwanese firms Hon Hai Precision Industry Co. and Wistron Corp., both known for producing AI servers. US-based Amkor Technology and Taiwan’s Siliconware Precision Industries will also provide advanced packaging and testing services.

Nvidia’s Blackwell AI chips have already begun production at TSMC’s Arizona facility, with large-scale operations planned in Texas through partnerships with Hon Hai in Houston and Wistron in Dallas.

The move could impact Taiwan’s economy, as many Nvidia components are currently produced there. Taiwan’s Economic Affairs Minister declined to comment specifically on the project but assured that the government will monitor overseas investments by Taiwanese firms.

Nvidia said the initiative would help meet surging AI demand while strengthening semiconductor supply chains and increasing resilience amid shifting global trade policies, including new US tariffs on Taiwanese exports.

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