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AxeleraAI receives $66 million EU grant for AI chip development

AxeleraAI, a promising AI chipmaker based in Eindhoven, Netherlands, has been awarded a €61.6 million ($66 million) grant by the European Union to develop its Titania chip.

The grant, provided by EuroHPC, aims to bolster Europe’s AI capabilities by supporting the development of a chip specifically designed for “inference” computing in data centres.

However, this initiative is part of the EU’s broader strategy to enhance its AI sector and reduce its dependency on US and Chinese technologies.

Fabrizio Del Maffeo, CEO of AxeleraAI, expressed pride in the award, viewing it as a significant opportunity for the Dutch company to expand its business.

The new chip will be built on the open-source RISC-V standard, a growing alternative to more traditional chip systems like those from Intel and Arm. AxeleraAI’s existing Metis chip is already being used in edge AI applications, such as monitoring safety in factories through CCTV analysis.

While the company does not aim to compete with industry giants like Nvidia in training AI models, Del Maffeo stated that the Titania chip is designed to excel in running large AI models once they are trained.

This shift towards more affordable inference computing is expected to become increasingly important as the demand for AI solutions grows. AxeleraAI has already raised $200 million from investors, including Samsung, since its founding in 2021.

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Malaysia discusses impact of US chip tariffs with companies

Malaysia is engaging with its semiconductor industry to address the potential impact of US tariffs on chips. The US has signalled its intention to impose tariffs of up to 25% on semiconductors, which could significantly affect Malaysia, one of the top exporters of chips to the US Last year, Malaysia shipped $16.2 billion worth of chips, making up nearly 20% of US semiconductor imports.

Trade Minister Tengku Zafrul Aziz said the government is in talks with companies to see if they can absorb the higher costs caused by the tariffs. The discussions are focused on whether consumers or companies will bear the increased expenses. While the government has not yet decided whether it will provide financial support, Malaysia’s strong semiconductor sector, which includes US giants like Intel and GlobalFoundries, remains a critical part of the economy.

Despite concerns over the tariffs, Tengku Zafrul expressed confidence that Malaysia’s data centres would not be affected by new US export restrictions on advanced chips. The country has become a major hub for data centres, attracting investments from companies such as Microsoft, Google, and Amazon. The growth of AI-related demand is expected to drive further expansion, and Tengku Zafrul indicated that the sector’s trajectory is strong enough to absorb any new challenges.

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Italy debates Starlink for secure communications

Italy’s ruling League party is urging the government to choose Elon Musk’s Starlink over French-led Eutelsat for secure satellite communications, arguing that Starlink’s technology is more advanced.

Prime Minister Giorgia Meloni’s government is looking for an encrypted communication system for officials operating in high-risk areas, with both Starlink and Eutelsat in talks for the contract.

League leader Matteo Salvini, a strong supporter of former US President Donald Trump, has emphasised the need to prioritise US technology over a French alternative.

Meanwhile, Eutelsat’s CEO confirmed discussions with Italy as the country seeks an interim solution before the EU’s delayed IRIS² satellite system becomes operational.

Meloni’s office has stated that no formal negotiations have taken place and that any decision will be made transparently.

However, opposition parties have raised concerns over Starlink’s involvement, given recent speculation that Musk could cut off Ukraine from its service, potentially affecting national security interests.

Musk responded positively to the League’s endorsement, calling it ‘much appreciated’ on his social media platform X.

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YouTube unveils lower-cost ad-free plan to attract more subscribers

YouTube has launched a new $7.99 monthly subscription plan called ‘Premium Lite,’ offering an ad-free experience for most videos, excluding music.

The service is aimed at viewers who rarely watch music content and prefer an alternative to YouTube’s $13.99 Premium plan. By introducing this lower-cost option, YouTube hopes to attract users who already pay for other music streaming services.

The company previously tested Premium Lite in several countries, including Australia and Germany, with early results showing strong demand. Many first-time subscribers opted for the new plan, with some later upgrading to the full Premium service.

YouTube now has over 125 million paying subscribers, up from 100 million at the start of 2024, though this includes free trial users.

Advertising remains YouTube’s primary revenue source, generating $36 billion in 2024, but subscriptions are becoming increasingly important.

Alphabet has not disclosed exact figures for YouTube’s subscription revenue, but company executives have confirmed that paid memberships are contributing significantly to overall earnings.

The new plan is part of YouTube’s broader strategy to expand its subscription base while maintaining strong advertising revenue.

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Musk’s Starlink eyes expansion in Italy despite regulatory delays

Elon Musk’s Starlink is seeking to acquire additional spectrum in Italy to enhance its satellite communications network, but regulatory approval remains stalled.

The company applied for access to E-band frequencies two years ago, but the Italian government has yet to grant final approval. Authorities are waiting for a European Union-wide decision on spectrum allocation before moving forward.

Starlink, which operates thousands of low-orbit satellites, has been offering services in Italy since 2021 and currently serves around 55,000 customers.

The company is considering building another ground station in northern Italy due to strong demand while potentially scaling back operations in the south, where uptake has been lower than expected.

The Italian government is also exploring the use of Starlink’s network for secure communications in diplomatic and military operations, as well as to improve internet access in remote areas.

However, progress has been slow amid political opposition and broader EU regulatory uncertainties.

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AI-driven dubbing comes to Amazon Prime Video

Amazon Prime Video is introducing AI-powered dubbing for select movies and series in English and Spanish, aiming to expand its reach and enhance accessibility.

The feature, launching on Wednesday, will initially be available on 12 licensed titles that currently lack dubbing support.

With over 200 million customers worldwide, Prime Video‘s adoption of AI technology follows a growing trend among media companies using artificial intelligence to enhance viewer experiences.

Other firms, such as Disney’s ESPN, have also explored AI-driven solutions to personalise content and attract younger audiences.

The integration of AI-assisted dubbing reflects a broader industry shift towards technology-driven innovation in content distribution.

By using AI to bridge language barriers, Prime Video seeks to engage a wider audience and improve the global accessibility of its library.

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Google acknowledges AI being used for harmful content

Google has reported receiving over 250 complaints globally about its AI software being used to create deepfake terrorist content, according to Australia’s eSafety Commission.

The tech giant also acknowledged dozens of user reports alleging that its AI program, Gemini, was being exploited to generate child abuse material. Under Australian law, companies must provide regular updates on their efforts to minimise harm or risk hefty fines.

The eSafety Commission described Google’s disclosure as a ‘world-first insight’ into how AI tools may be misused to produce harmful and illegal content.

Between April 2023 and February 2024, Google received 258 reports of suspected AI-generated extremist material and 86 related to child exploitation. However, the company did not specify how many of these reports were verified.

A Google spokesperson stated that the company strictly prohibits AI-generated content related to terrorism, child abuse, and other illegal activities.

While it uses automated detection to remove AI-generated child exploitation material, the same system is not applied to extremist content.

Meanwhile, the regulator has previously fined platforms like X (formerly Twitter) and Telegram for failing to meet reporting requirements, with both companies planning to appeal.

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Singapore expands charges in server fraud case

Singapore authorities have filed additional charges against three men in a widening investigation into server fraud, which may involve AI chips, court documents revealed on Thursday.

The suspects are accused of deceiving tech firms Dell and Super Micro by falsely representing the final destination of the servers they purchased.

Officials have stated the servers could contain Nvidia chips but have not confirmed whether they fall under US export controls.

The case is part of a broader probe involving 22 individuals and companies suspected of fraudulent transactions. US authorities are also investigating whether Chinese AI firm DeepSeek has been using restricted American chips.

Singapore has confirmed that some servers were sent to Malaysia, where authorities are now examining if any laws were violated.

Two suspects, Aaron Woon and Alan Wei, face additional fraud charges, while a third, Li Ming, had his earlier charge updated to include an alleged offence dating back to 2023.

Lawyers representing the men have either declined to comment or stated that the case is complex due to its international scope.

Meanwhile, Singapore police have seized 42 electronic devices and are analysing bank statements as they work with foreign law enforcement to trace the movement of funds.

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Microsoft drops parts of CoreWeave partnership

Microsoft has reportedly scaled back parts of its agreements with cloud computing provider CoreWeave due to delivery issues and missed deadlines, according to the Financial Times.

Despite maintaining several contracts worth billions, the tech giant has moved away from certain deals, though the decision is said to be unrelated to any broader changes in its data centre strategy.

CoreWeave, backed by Nvidia, specialises in providing high-powered AI computing resources and competes with major cloud providers like Microsoft Azure and Amazon AWS.

The company is preparing for a major initial public offering (IPO) in New York, aiming for a valuation exceeding $35 billion and seeking to raise over $3 billion.

The cloud provider recently expanded its capabilities by acquiring AI developer platform Weights & Biases for an undisclosed sum.

Neither Microsoft, CoreWeave, nor Nvidia have responded to requests for comment regarding the report.

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Alibaba unveils new AI model boosting shares by 8%

Alibaba Group’s latest AI breakthrough sent its Hong Kong-listed shares soaring more than 8% on Thursday.

The e-commerce giant announced its new AI reasoning model, QwQ-32B, which it claims performs on par with DeepSeek’s R1 model despite having far fewer parameters—32 billion compared to 671 billion.

The unveiling comes as China pushes for advancements in AI, humanoid robots, and 6G technology, with government support pledged on Wednesday.

Alibaba’s new model is available through its chatbot service, Qwen Chat, which offers various AI models, including the high-powered Qwen2.5-Max.

The company said QwQ-32B demonstrated strong performance in areas such as mathematical reasoning, coding, and problem-solving, competing closely with top global models like OpenAI’s o1 mini and DeepSeek’s R1.

DeepSeek has gained recognition in China for producing highly efficient AI models at a fraction of the cost of its Western rivals.

Meanwhile, another Chinese AI innovation also made headlines on Thursday. A startup called Monica introduced an AI agent named Manus, which reportedly outperformed OpenAI’s Deep Research on an AI assistant benchmark.

Unlike traditional chatbots, AI agents are designed for more complex tasks, with Manus capable of creating travel itineraries and comparing insurance policies.

Currently available by invitation only, the agent gained significant attention online, with a demonstration video amassing over 280,000 views and users eager to gain access.

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