Digital business models Archives | Page 466 of 571

Trump discusses TikTok sale with China

President Donald Trump confirmed on Wednesday that he was in active discussions with China over the future of TikTok, as the US seeks to broker a sale of the popular app. Speaking to reporters aboard Air Force One, Trump revealed that talks were ongoing, underscoring the US government’s desire to address national security concerns tied to the app’s ownership by the Chinese company ByteDance. The move comes amid growing scrutiny over TikTok’s data security practices and potential links to the Chinese government.

The Trump administration has expressed concerns that TikTok could be used to collect sensitive data on US users, raising fears about national security risks. As a result, the US has been pushing for ByteDance to sell TikTok’s US operations to an American company. This would be part of an effort to reduce any potential influence from the Chinese government over the app’s data and operations. However, the process has faced complexities, with discussions involving multiple stakeholders, including potential buyers.

While the negotiations continue, the future of TikTok remains uncertain. If a sale is not agreed upon, the US has indicated that it could pursue further actions, including a potential ban of the app. As these talks unfold, the outcome could have significant implications for TikTok’s millions of American users and its business operations in the US, with both sides working to find a solution that addresses the security concerns while allowing the app to continue its success.

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Hong Kong explores new virtual asset regulations

Hong Kong is considering approving derivatives and margin lending for virtual assets, aiming to strengthen its position as a global hub for digital assets, according to the Securities and Futures Commission (SFC). This move is part of the city’s broader strategy, initiated in 2022, to become a leading virtual asset trading centre, particularly after China’s cryptocurrency ban in 2021. The SFC’s CEO, Julia Leung, announced the potential inclusion of derivative products and margin lending for professional investors, highlighting ongoing efforts to enhance Hong Kong’s competitiveness in the sector.

As part of its regulatory push, the city has already issued nine virtual asset trading platform licences, with more applications under review. One such licence was granted to Bullish Group, the parent company of CoinDesk. Additionally, financial secretary Paul Chan noted that the government is working on advancing regulations for stablecoins, further solidifying Hong Kong’s ambitions in the digital asset space.

The city will soon release a detailed roadmap for virtual asset growth, which will outline future plans. Meanwhile, Hong Kong competes with cities like Singapore and Dubai, also striving to become leading centres for digital finance. The latest developments come amid a broader global shift in the cryptocurrency market, which has seen significant interest from institutional investors following regulatory changes in the US under President Trump.

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Resonac plans to pursue acquisitions after reducing borrowing

Resonac Holdings, a leading chip materials maker in Japan, is positioning itself to make strategic acquisitions after reducing its borrowing, according to CEO Hidehito Takahashi. Speaking to Reuters, Takahashi expressed the company’s intention to take an aggressive approach this year, particularly eyeing opportunities when a state-backed fund exits its competitor JSR, a photoresist maker recently taken private.

Resonac, formed by Showa Denko’s acquisition of Hitachi Chemical, has been divesting assets, including a planned partial spin-off of its petrochemical business. Takahashi sees JSR’s potential exit as a key opportunity for Resonac to expand its footprint in the semiconductor materials sector. Japan’s semiconductor market remains competitive, despite the country’s reduced role in chip manufacturing, and companies like Resonac must scale up to remain viable.

In addition to its expansion efforts, Resonac is establishing an R&D centre in Silicon Valley to strengthen its ties with firms in the region. However, Takahashi made it clear that the company is not currently considering manufacturing materials in the US, though future demand could prompt a reassessment of such plans.

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Meta announces LlamaCon as it accelerates AI push

Meta has unveiled plans to host its first-ever developer conference dedicated to generative AI, called LlamaCon. Scheduled for April 29, the event will focus on Meta’s open-source AI efforts, particularly its Llama models.

The company aims to share updates that will help developers build new AI-powered applications. Additional details are expected in the coming weeks, with Meta’s broader annual conference, Meta Connect, set for September.

The company has positioned itself as a leader in open-source AI, boasting hundreds of millions of downloads of its Llama models. Major firms, including Goldman Sachs, AT&T, and Accenture, are among those integrating Llama into their services.

However, reports suggest that Meta has been caught off guard by the rapid rise of Chinese AI company DeepSeek, whose latest models may challenge Llama’s dominance. Meta has reportedly launched internal efforts to study DeepSeek’s approach to efficiency and cost reduction.

With a planned $80 billion investment in AI this year, Meta is pushing ahead with new Llama models that could include reasoning, multimodal, and autonomous capabilities. CEO Mark Zuckerberg has expressed confidence in Llama’s potential to become the most widely used AI model.

However, Meta is also facing legal and regulatory challenges, including lawsuits over alleged copyright violations and privacy concerns in the European Union that have delayed some AI launches.

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AI sizing tools aim to reduce fashion returns

Online fashion retailers are increasingly using artificial intelligence to tackle the costly issue of clothing returns, with up to 30% of purchases being sent back due to sizing problems. A study by McKinsey estimates that each return costs between $21 and $46, significantly affecting profit margins. Many customers order multiple sizes and return those that don’t fit, creating logistical headaches for retailers.

To address this, companies are adopting AI-driven sizing tools. French start-up Fringuant, for instance, uses an algorithm that analyses a shopper’s height, weight, and a quick selfie to predict the best size. Zalando, a German e-commerce giant, has also implemented its own AI-powered tool that guides customers by comparing their body shape with garment dimensions. These technologies are already helping some brands reduce return rates significantly.

Beyond sizing, AI is also improving warehouse operations to prevent shipping mistakes. Smart cameras on order pickers’ trolleys at logistics firms help ensure the right product is selected, while AI-equipped robots track stock levels, reducing errors that lead to returns. As online shopping continues to grow, retailers hope these innovations will streamline processes and boost efficiency.

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Juventus gains backing from Tether

Tether, the cryptocurrency firm behind one of the world’s leading stablecoins, has invested in Juventus, Italy’s most popular football club. Holding a 5% stake valued at approximately €50 million, Tether revealed it has acquired shares gradually over recent months.

CEO Paolo Ardoino, a Juventus supporter, highlighted the firm’s desire to explore collaborative opportunities while remaining a minority investor.

Tether has expressed its willingness to cooperate with Juventus’ management and owners, aiming to enhance the club’s brand globally. Potential collaboration may include utilising Tether’s payment platform and vast user base of 400 million, particularly in emerging markets.

Ardoino noted that football clubs must adopt forward-looking strategies to connect with fans using innovative technologies.

Juventus, controlled by the Agnelli family through investment company Exor, has faced financial challenges recently, including losses nearing €200 million in the last fiscal year. Exor has denied any plans to sell its majority stake, which currently stands at 64%.

Ardoino emphasised that Tether’s goal is supportive rather than aggressive, focusing on unlocking the club’s untapped potential.

Tether remains a dominant player in the stablecoin market, with over $140 billion tokens in circulation. Despite regulatory concerns about stablecoins’ risks to financial systems, Tether’s profitability exceeded $13 billion in 2024, providing ample resources for strategic investments like its stake in Juventus.

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Judge allows Musk’s DOGE to keep accessing government data

A US federal judge has denied a request to temporarily block Elon Musk’s Department of Government Efficiency (DOGE) from accessing data from seven federal agencies or making further workforce cuts. The lawsuit, brought by 14 Democratic attorneys general, argued that DOGE was overstepping its authority by reshaping agencies and obtaining vast amounts of government information. However, Judge Tanya Chutkan ruled that the plaintiffs failed to prove immediate harm, allowing DOGE to continue operations.

Despite this decision, the judge acknowledged serious constitutional concerns regarding Musk’s authority. She noted that Musk had not been nominated by the US President Trump or confirmed by the Senate, raising potential violations of the Appointments Clause. In her ruling, Chutkan also criticised the Trump administration’s legal arguments, suggesting inconsistencies in its justification for DOGE’s powers.

While the restraining order was denied, the states can still pursue their case, potentially seeking a preliminary injunction to halt DOGE’s access to federal data. New Mexico Attorney General Raúl Torrez vowed to continue the legal fight, accusing Musk of destabilising government functions and acting without proper oversight. The battle over DOGE’s legitimacy is expected to intensify in the coming months.

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Google Meet update brings smarter AI-powered notes

Google Meet’s AI-driven note-taking feature is getting a major upgrade with the ability to generate action items from meeting transcripts. The update, powered by Google’s Gemini AI, will automatically identify key tasks, assign deadlines, and designate responsible individuals at the end of each meeting.

Originally launched in August 2024, the AI transcription tool already provides accurate speaker separation and structured summaries in Google Docs. With this latest enhancement, the technology aims to improve productivity by ensuring that key takeaways are actionable and well-organised.

The feature begins rolling out today but at a slower pace than usual, as Google closely monitors its performance and quality. While AI-generated notes can be a helpful time-saver, some users may still prefer manual control over meeting documentation, especially when handling sensitive information.

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Mira Murati launches AI startup Thinking Machines Lab

Former OpenAI chief technology officer Mira Murati has launched a new AI startup called Thinking Machines Lab, backed by a team of around 30 researchers and engineers from companies such as OpenAI, Meta, and Mistral. The startup aims to create AI systems that encode human values and address a wider range of applications than existing rivals, according to a blog post from the company.

Murati’s new venture demonstrates her ability to attract top talent, with two-thirds of the team made up of former OpenAI employees. Among them are Barret Zoph, a well-known researcher who joined Murati in leaving OpenAI in September, and John Schulman, OpenAI’s co-founder and the startup’s chief scientist. Schulman previously left OpenAI for Anthropic to focus on AI alignment, a key goal of Thinking Machines Lab.

The company’s approach differentiates itself by combining research and product teams in the design process. Thinking Machines Lab plans to contribute to AI alignment research by sharing code, datasets, and model specifications. Murati, now CEO of the startup, has previously played a major role in developing ChatGPT, and her exit from OpenAI reflects a broader trend of high-profile departures amid changes at the company.

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New Fiverr AI model offers creative control to freelancers

Freelance marketplace Fiverr is rolling out new AI tools designed to help gig workers streamline their work and maintain competitiveness. The ‘Personal AI Creation Model’ allows freelancers to train AI systems on their own work, offering clients either automated or blended content.

Freelancers retain ownership of the generated content and can set prices for its use, with the service costing $25 per month.

The tools aim to address challenges in the gig economy, where generative AI has increased competition while reducing opportunities. Fiverr highlights that the AI creation model prioritises freelancers’ control, ensuring their data is not misused.

Additionally, a ‘Personal AI Assistant’ is available to help with routine tasks and client communication, priced at $29 per month or included with Fiverr’s premium subscription.

Fiverr is also introducing a programme granting company shares to its top-performing freelancers. While the specifics remain undisclosed, the initiative reflects efforts to support gig workers in an increasingly competitive market.

As generative AI reshapes industries, Fiverr’s initiatives could help freelancers navigate the evolving landscape while enhancing their earning potential and safeguarding their creative work.

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