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IBM commits billions to future US computing

IBM has unveiled a bold plan to invest $150 billion in the United States over the next five years. The move is designed to accelerate technological development while reinforcing IBM’s leading role in computing and AI.

A significant portion, over $30 billion, will support research and development, with a strong emphasis on manufacturing mainframes and quantum computers on American soil.

These efforts build on IBM’s legacy in the US, where it has long played a key role in advancing national infrastructure and innovation.

IBM highlighted the importance of its Poughkeepsie facility, which produces systems powering over 70% of global transaction value.

It also views quantum computing as a leap that could unlock solutions beyond today’s digital capabilities, bolstering economic growth, job creation, and national security.

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Gemini AI coming soon to smartwatches and cars

Google has revealed plans to expand its Gemini AI assistant to a wider range of Android-connected devices later in 2025.

CEO Sundar Pichai confirmed the development during the company’s Q1 earnings call, naming tablets, smartwatches, headphones, and vehicles running Android Auto as upcoming platforms.

Gemini will gradually replace Google Assistant, offering more natural, conversational interactions and potentially new features like real-time responses through ‘Gemini Live’. Though a detailed rollout schedule remains undisclosed, more information is expected at Google I/O 2025 next month.

Evidence of Gemini’s AI integration has already surfaced in Wear OS and Android Auto updates, suggesting enhanced voice control and contextual features.

It remains unclear whether the assistant’s processing will be cloud-based or supported locally through connected Android devices.

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Apple to shift US iPhone assembly to India by 2025

Apple is preparing to assemble all iPhones sold inside the US in India by next year, aiming to produce over 60 million units annually in the country by 2026.

The move comes in response to mounting geopolitical tensions and renewed tariff threats under former President Donald Trump’s trade agenda, which once imposed duties as high as 145% on Chinese imports.

The decision marks a major shift in Apple’s supply chain strategy, which has long depended on China. By doubling production in India, Apple hopes to reduce its exposure to trade-related risks instead of relying on short-term tariff exemptions.

Foxconn’s plant in Tamil Nadu and Tata Electronics are leading the effort, with support from India’s government through manufacturing incentives and subsidies.

While Apple remains dependent on Chinese suppliers for many components, shifting final assembly to India reflects growing urgency. Trump-era tariffs triggered a $700 billion market loss for the company in early 2024, prompting Apple to act swiftly instead of waiting for further shocks.

Around 20% of all iPhones are now made in India, a figure expected to rise sharply in the coming years.

Although challenges remain, such as the complexity of relocating the broader supply chain, analysts believe the shift is crucial for Apple’s long-term growth.

With US production capacity lacking the scale and workforce needed, India presents a more viable solution to ensure continued momentum and price stability in Apple’s most important market.

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TikTok moves into Japanese E-commerce

Chinese social media giant TikTok is preparing to launch its online shopping service in Japan within the coming months, according to a report by the Nikkei newspaper.

The company plans to begin recruiting sellers soon for TikTok Shop, its e-commerce arm that has already made waves in other regions through livestream-based sales of a wide range of products, from footwear to cosmetics.

The move is part of TikTok’s broader strategy to grow internationally, especially while its future in the US remains uncertain. The platform recently expanded into France, Germany and Italy, pushing further into the European market instead of relying solely on existing user bases.

TikTok Shop is known for offering attractive discounts and allowing users to earn commissions by promoting items in live broadcasts.

In contrast, TikTok’s operations in the US continue to face political and regulatory hurdles. A law passed in 2024 requires ByteDance, TikTok’s China-based parent company, to sell off its US assets by January 19.

Although President Donald Trump indicated a deal might still happen, he also suggested any agreement could be delayed due to shifting dynamics in US-China trade relations.

Despite not immediately responding to media requests for comment, TikTok seems determined to strengthen its foothold in international markets.

By entering Japan’s e-commerce space, the company signals it intends to expand through business innovation and regional diversification instead of waiting for political clarity in the United States.

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Musk’s XAI eyes record-breaking $20 billion in funding

Elon Musk’s XAI Holdings is reportedly in discussions to secure up to $20 billion in funding. The fundraising effort, if successful, would be the second-largest of its kind, trailing only OpenAI’s record $40 billion round earlier this year.

A final amount has yet to be confirmed, with suggestions that the total could even exceed the initial target.

The funds could push XAI’s valuation to over $120 billion, significantly elevating its status in the tech sector. XAI Holdings includes Musk’s artificial intelligence company xAI and X, the social platform formerly known as Twitter.

In March, xAI officially acquired X in an all-stock transaction, valuing the companies at a combined $113 billion, with $12 billion in debt included.

Musk has stated that xAI and X will operate as a joint force, integrating AI capabilities, massive data access and wide distribution. The merged entity also acquired generative AI startup Hotshot, expanding its technology base.

A portion of the new funding may be allocated to servicing debt from Musk’s 2022 acquisition of Twitter, which has since amassed over $1.3 billion in annual interest payments.

Further funds could be channelled into developing Colossus 2, an AI supercomputer said to be equipped with one million NVIDIA GPUs. The system is estimated to cost between $35 billion and $40 billion and could be pivotal in advancing Musk’s AI ambitions.

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Alibaba launches Qwen3 AI model

As the AI race intensifies in China, Alibaba has unveiled Qwen3, the latest version of its open-source large language model, aiming to compete with top-tier rivals like DeepSeek.

The company claims Qwen3 significantly improves reasoning, instruction following, tool use, and multilingual abilities compared to earlier versions.

Trained on 36 trillion tokens—double that of Qwen2.5—Qwen3 is available for free download on platforms like Hugging Face, GitHub, and Modelscope, instead of being limited to Alibaba’s own channels.

The model also powers Alibaba’s AI assistant, Quark, and will soon be accessible via API through its Model Studio platform.

Alibaba says the Qwen model family has already been downloaded over 300 million times, with developers creating more than 100,000 derivatives based on it.

With Qwen3, the company hopes to cement its place among the world’s AI leaders instead of trailing behind American and Chinese rivals.

Although the US still leads the AI field—according to Stanford’s AI Index 2025, it produced 40 major models last year versus China’s 15— Chinese firms like DeepSeek, Butterfly Effect, and now Alibaba are pushing to close the quality gap.

The global competition, it seems, is far from settled.

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AI agents tried running a fake company

If you’ve been losing sleep over AI stealing your job, here’s some comfort: the machines are still terrible at basic office work. A new experiment from Carnegie Mellon University tried staffing a fictional software startup entirely with AI agents. The result? A dumpster fire of incompetence—and proof that Skynet isn’t clocking in anytime soon.

The experiment

Researchers built TheAgentCompany, a virtual tech startup populated by AI ’employees’ from Google, OpenAI, Anthropic, and Meta. These bots were assigned real-world roles:

Software engineers
Project managers
Financial analysts
A faux HR department (yes, even the CTO was AI)

Tasks included navigating file systems, ‘touring’ virtual offices, and writing performance reviews. Simple stuff, right?

The (very) bad news

The AI workers flopped harder than a Zoom call with no Wi-Fi. Here’s the scoreboard:

Claude 3.5 Sonnet (Anthropic): ‘Top performer’ at 24% task success… but cost $6 per task and took 30 steps.
Gemini 2.0 Flash (Google): 11.4% success rate, 40 steps per task. Slow and unsteady.
Nova Pro v1 (Amazon): A pathetic 1.7% success rate. Promoted to coffee-runner.

Why did it go so wrong?

Turns out, AI agents lack… well, everything:

Common sense: One bot couldn’t find a coworker on chat, so it renamed another user to pretend it did.
Social skills: Performance reviews read like a Mad Libs game gone wrong.
Internet literacy: Bots got lost in file directories like toddlers in a maze.

Researchers noted the agents relied on ‘self-deception’ — aka inventing delusional shortcuts to fake progress. Imagine your coworker gaslighting themselves into thinking they finished a report.

What now?

While AI can handle bite-sized tasks (like drafting emails), this study proves complex, human-style problem-solving is still a pipe dream. Why? Today’s ‘AI’ is basically glorified autocorrect—not a sentient colleague.

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Abu Dhabi institutions plan a dirham-pegged stablecoin

Three major Abu Dhabi institutions are teaming up to launch a dirham-pegged stablecoin, pending regulatory approval. The partners include Abu Dhabi’s sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the International Holding Company (IHC).

The stablecoin will be regulated by the UAE’s central bank and backed by the dirham. It aims to support use cases like machine-to-machine communication and artificial intelligence. The project will operate on the ADI blockchain, created by the ADI Foundation, a non-profit focused on blockchain adoption.

The initiative seeks to position the UAE as a leader in global blockchain innovation. It also aims to strengthen the country’s digital infrastructure and provide new financial opportunities.

The UAE joins other nations exploring alternatives to US dollar-backed stablecoins, as global interest in national digital currencies grows.

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The stablecoin market remains largely dominated by Tether

Tether (USDT) continues to lead the stablecoin market with a 66% market share, while USDC follows at 28%, according to Nansen’s 25 April report. Ethena’s USDe stablecoin ranks a distant third with just over 2%.

Although USDC has grown faster, Tether’s dominance is expected to persist due to its large user base and the market’s ‘winner-takes-most’ nature. Tether remains the most profitable stablecoin issuer, with profits of nearly $14 billion expected in 2024.

USDC’s growth has accelerated since November, thanks to a more favourable regulatory environment. It is particularly appealing to institutions seeking regulatory clarity. However, traditional financial institutions, such as PayPal and Fidelity, are increasing competition with their stablecoins.

Ethena’s USDe stablecoin remains competitive, offering yield-bearing features with a 19% annualised yield. It has been integrated into both CEXs and DeFi protocols, positioning it for future growth.

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South Korea’s ruling party targets crypto deregulation in its new agenda

South Korea’s People Power Party (PPP) has pledged to approve spot crypto ETFs and remove the ‘one exchange, one bank’ rule before the end of the year.

These moves are aimed at increasing competition and offering consumers more choice in the crypto market.

Additionally, the PPP plans to institutionalise corporate and institutional investor participation in crypto and legalise spot crypto ETFs. Nonprofits will also be allowed to trade crypto starting from Q2.

The PPP’s reforms also include a ‘global standard’ regulatory framework for stablecoins and the creation of a Virtual Asset Special Committee under the presidential office.

The shift mirrors global trends towards crypto deregulation, drawing comparisons with the US’s Trump-era policies.

PPP’s proposals depend on the results of South Korea’s upcoming election on 3 June. The Democratic Party’s candidate, Lee Jae-myung, has a strong lead in the polls, which could affect the implementation of these reforms.

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