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Tencent sees surge in profits and revenue

Tencent, a leading Chinese tech giant, has reported impressive financial results for the fourth quarter and full year, boosted by its strategic investment in AI.

For the three months ending December 31, Tencent’s net profits soared by 90% year-on-year to 51.3 billion yuan ($7.1 billion), while its revenue increased by 11% to 172.4 billion yuan, surpassing analyst expectations.

The company’s strong performance was attributed to AI-driven enhancements in its advertising platform, growing video account engagement, and solid results from its gaming division.

For the full year, Tencent’s revenue reached 660.3 billion yuan, up 8% from the previous year, with net profits jumping 68% to 194.1 billion yuan.

CEO Pony Ma highlighted the role of AI in driving innovation, noting that Tencent had reorganized its AI teams to focus on fast product development and advanced model research.

The company’s stock price has surged to its highest in nearly four years, reflecting strong investor confidence.

The increased AI interest follows the unexpected global success of DeepSeek, a Chinese startup whose chatbot development caught the attention of investors, positioning China as a competitor to Western tech leaders like OpenAI.

Ma expressed Tencent’s admiration for DeepSeek and confirmed its active integration of their technology. Tencent has also started testing its own AI model, ‘Hunyuan Thinker’, which aims to offer more professional and human-like responses.

Despite its financial successes, Tencent faces ongoing challenges, including a sluggish domestic economy and political tensions, particularly with the US.

In January, the US added Tencent to a list of firms linked to China’s military, a move the company and the Chinese government have criticized as unjustified.

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Google acquires Wiz in $32 billion deal

Google has finalized a $32 billion acquisition of Israeli cybersecurity firm Wiz, sealing the deal just weeks after Donald Trump’s inauguration.

The agreement, a significant increase from Google’s initial $23 billion offer, was aided by the expectation of a friendlier antitrust review under the new administration, sources familiar with the negotiations said.

Wiz had considered an IPO before returning to the negotiating table, with new Chief Financial Officer Fazal Merchant playing a key role in shaping the deal alongside CEO Assaf Rappaport.

Google’s cloud chief, Thomas Kurian, was also instrumental in the agreement, which includes an unusually high $3.2 billion breakup fee should regulatory issues derail the transaction.

With Wiz boasting 70% annual revenue growth and over $700 million in annualized revenue, Google viewed the premium price as justified.

However, concerns remain over potential antitrust scrutiny, particularly given Google’s ongoing legal battles with the US Department of Justice over its dominance in search and ad technology.

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India’s banks encouraged to adopt AI for consumer protection

Indian banks should harness AI to improve internal controls and address customer complaints more effectively, according to central bank governor Sanjay Malhotra.

Malhotra highlighted concerns over rising complaints about mis-selling and aggressive banking practices, warning that the issue could escalate if left unchecked. In the 2023-2024 financial year, 95 commercial banks in India received over 10 million complaints from customers.

AI-powered solutions can help financial institutions analyse large data sets to detect issues such as ATM failures and erroneous charges before they become widespread.

Malhotra also pointed to the potential of AI-driven chatbots and voice recognition tools to assist customers in multiple languages, making banking services more accessible in India’s linguistically diverse market.

Alongside AI adoption, Malhotra urged banks to invest in human capital to enhance customer service and grievance redressal processes.

Strengthening both technology and human resources will be crucial in ensuring financial institutions can meet the needs of a rapidly growing customer base while maintaining trust and transparency.

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DeepMind’s Hassabis calls for UK leadership in AI development

Britain should use its strengths in AI to shape how the technology is deployed worldwide, according to DeepMind founder Demis Hassabis.

Hassabis highlighted the country’s leading universities and skilled workforce as key factors in maintaining a competitive edge. Speaking at a Google AI event, he stressed the economic and geopolitical importance of ensuring AI development aligns with ethical and practical standards.

The UK government is working to boost AI innovation, with advanced technology at the centre of discussions between Prime Minister Keir Starmer and US officials.

Google has announced upgrades to its AI offerings in Britain, including expanded UK data residency for its work productivity tool, Google Agentspace. Meanwhile, tech rival Oracle has pledged a $5 billion investment in Britain over the next five years to support growing demand for cloud services.

Hassabis also called for global standards on the use of copyrighted material in AI development, noting the challenges of regulating models used across different countries.

Google’s AI expansion includes the addition of its Chirp 3 audio generation model to Vertex AI, enhancing cloud services with human-like voice capabilities. The UK remains a key player in the AI sector, with industry leaders pushing for policies that ensure responsible and effective deployment of the technology.

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Google reduces costs with MediaTek in AI chip development

Google is set to collaborate with Taiwan’s MediaTek on the next generation of its Tensor Processing Unit (TPU) chips, which are expected to be produced next year.

The partnership is partly driven by cost considerations, as MediaTek offers Google a lower price per chip than its long-time partner Broadcom. MediaTek’s close ties with Taiwan Semiconductor Manufacturing Company (TSMC) also played a role in Google’s decision.

Despite the new partnership, Google has not severed ties with Broadcom, which has exclusively worked on its AI chips for several years.

Broadcom remains involved in the project, and an employee at the company confirmed that the relationship with Google is still intact. Google has been developing its own AI server chips, allowing it to reduce reliance on Nvidia, whose processors dominate the industry.

Google introduced its sixth-generation TPU last year to provide itself and its cloud customers with an alternative to Nvidia’s highly sought-after chips. The company reportedly spent between $6 billion and $9 billion on TPUs in 2023, based on revenue targets from Broadcom.

By bringing MediaTek into the fold, Google aims to strengthen its AI chip strategy while managing production costs more efficiently.

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Shareholders’ lawsuit against Amazon rejected with prejudice

A US judge has dismissed a lawsuit accusing Amazon of misleading shareholders about its treatment of third-party sellers and its expansion plans, which ultimately led to an antitrust case by the Federal Trade Commission (FTC).

The ruling by Judge John Chun in Seattle was made with prejudice, meaning the lawsuit cannot be refiled. Lawyers representing the shareholders did not immediately comment on the decision.

Investors had alleged that Amazon hid an algorithm that ensured its own products were priced lower than competitors’ and failed to disclose the risks of overexpanding its fulfilment network.

However, Judge Chun found no compelling evidence that Amazon executives, including former CEO Jeff Bezos and current CEO Andy Jassy, intentionally misled investors.

The court ruled that Amazon’s actions were more likely driven by profit-focused business strategies rather than fraud.

The FTC filed an antitrust case against Amazon in September 2023, accusing the company of using its market power to suppress competition and inflate prices.

Eighteen US states and Puerto Rico have joined the lawsuit, with a nonjury trial set for October 2026. The shareholder lawsuit covered Amazon stockholders from February 2019 to April 2022.

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AI assistants automate nursing tasks to address burnout

AI assistants are being increasingly used in healthcare to automate tasks traditionally performed by nurses, aiming to reduce burnout and streamline operations.

While hospitals say AI improves efficiency, nursing unions argue that these technologies undermine nurses’ expertise and can compromise patient care.

AI companies like Hippocratic AI offer assistants at a fraction of the cost of a nurse, which raises concerns among unions about the potential for technology to replace caregivers.

Hospitals are also facing issues with AI-generated false alarms and inaccurate advice, which nurses believe can be dangerous if not carefully managed.

Some hospitals are using AI for administrative tasks, like making calls to prepare patients for surgery, improving efficiency and reducing burnout.

However, AI companies envision a broader role for their technology, including humanlike avatars for patient communication and chronic pain management.

Experts argue that while AI may help with routine tasks, it may not be suitable for complex cases involving the very sick.

Nurses caution that patient care should remain a human-driven process, with AI serving as a tool rather than a replacement.

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Elon Musk’s xAI expands with Hotshot acquisition

xAI, Elon Musk’s AI company, has acquired Hotshot, a San Francisco-based startup focused on generative AI video tools.

The company, founded by Aakash Sastry and John Mullan, initially developed AI-driven photo editing tools but shifted its focus to text-to-video AI models.

Hotshot’s video foundation models, such as Hotshot-XL and Hotshot Act One, have already gained significant attention in the AI industry.

The acquisition is expected to boost xAI’s plans to develop its own video generation models, competing with major competitors like OpenAI’s Sora and Google’s Veo 2.

Musk had previously hinted at the creation of a ‘Grok Video’ model, which he anticipates launching in the near future. Hotshot’s team will likely play a key role in scaling these efforts, using xAI’s powerful infrastructure, including the Colossus cluster.

Hotshot’s website has confirmed the sunsetting of its video creation tools as of March 14, with existing customers having until March 30 to download their content.

The specifics of the staff transition to xAI remain unclear, with Sastry declining to comment. This acquisition represents a significant step for xAI in the rapidly evolving generative AI space.

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Palmetto leverages AI to revolutionise home electrification across the US

Palmetto, known for its innovative approach to residential solar installations, is now focusing on the broader electrification of US homes using AI.

The company has developed an AI-powered tool that simulates digital twins of homes across the country, which will help determine how technologies like heat pumps and solar panels can be effectively deployed in individual homes.

By using public and private data, Palmetto’s AI can infer critical information about a home, such as insulation types and building materials, to optimise energy efficiency.

As the residential solar market slows, Palmetto has expanded its software to include electrification solutions beyond solar, including backup batteries and heat pumps.

The company has now made its tool available to external developers through an API, allowing them to create new applications that can speed up the electrification process.

Palmetto hopes that developers will build tools that can quickly address the demand for these technologies, which will be essential in the US effort to reduce carbon emissions.

The company’s AI system analyses over 60 characteristics of homes, including details like the construction year and materials used, to make accurate energy efficiency predictions.

However, this tool will also offer developers insights into the growing electrification market. With an API offering 500 free calls per month, Palmetto’s strategy allows for scalable growth while providing key data for the company’s future development.

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Meta cracks down on misinformation in Australia

Meta Platforms has announced new measures to combat misinformation and deepfakes in Australia ahead of the country’s upcoming national election.

The company’s independent fact-checking program, supported by Agence France-Presse and the Australian Associated Press, will detect and limit misleading content, while also removing any material that could incite violence or interfere with voting.

Deepfakes, AI-generated media designed to appear real, will also face stricter scrutiny. Meta stated that any content violating its policies would be removed or labelled as ‘altered’ to reduce its visibility.

Users sharing AI-generated content will be encouraged to disclose its origin, aiming to improve transparency.

Meta’s Australian policy follows similar strategies used in elections across India, the UK and the US.

The company is also navigating regulatory challenges in the country, including a proposed levy on big tech firms profiting from local news content and new requirements to enforce a ban on users under 16 by the end of the year.

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