Digital business models Archives | Page 479 of 583

Vietnam opens door for Starlink to launch satellite service

Viet nam is set to adopt new regulations allowing Elon Musk’s Starlink to offer satellite internet services in the country, granting it full control over its local subsidiary. This decision follows prolonged negotiations between Vietnam and SpaceX and marks a shift in Vietnam’s policy towards foreign investment in satellite internet services. The move is seen as a diplomatic gesture towards SpaceX, which could help alleviate tensions amid concerns over potential tariffs from US President Donald Trump.

The new rules, set to be approved by Vietnam’s parliament, will allow foreign companies with low-orbit satellite networks to operate under a pilot scheme until 2030. SpaceX’s efforts to enter Vietnam had previously been stalled in late 2023 due to a ban on foreign control, a requirement for Musk’s involvement. The new regulations are part of broader efforts by the Vietnamese government to remove obstacles in technological and scientific activities.

With plans for a $1.5 billion investment in Vietnam, SpaceX has been expanding its supplier network in the country. If Starlink attracts significant local subscribers, it could help reduce the growing trade surplus Vietnam has with the US, which reached a record $123.5 billion last year. As US tariffs continue to threaten Vietnam’s export-driven economy, the government is also seeking ways to balance trade by increasing imports from the US, including agricultural products.

The shift in Vietnam’s stance reflects a desire to play a more flexible role in international trade relations, especially as tensions between the US and its trade partners escalate under Trump’s administration. The outcome of this policy change could have significant implications for both Starlink’s expansion and Vietnam’s relationship with the US.

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OpenAI weighs governance changes to block takeover

OpenAI is considering granting special voting rights to its non-profit board as part of new governance measures aimed at protecting the power of its directors amid a potential takeover bid from Elon Musk. The company’s CEO Sam Altman and board members are reportedly evaluating the move as OpenAI transitions to a for-profit structure. This would allow the non-profit board to retain control over key decisions, potentially blocking hostile takeovers, including Musk’s recent $97.4 billion acquisition offer.

The proposal comes after Musk’s consortium attempted to acquire OpenAI, with the company rejecting the offer, stating that it is not for sale and dismissing future bids. Musk’s bid appears to be driven by concerns over OpenAI’s shift toward profitability, as the company seeks to secure more funding to remain competitive in the AI sector. The special voting rights would give the non-profit board the ability to overrule major investors such as Microsoft and SoftBank, ensuring that OpenAI’s leadership retains influence over key decisions.

This move reflects OpenAI’s efforts to maintain control over its future direction while fending off external pressures from investors and potential acquirers. No final decision has been made yet, but the proposal is seen as a key strategy to safeguard the company’s independence as it navigates the evolving AI landscape.

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Taiwanese companies eye expansion in Texas

Taiwanese electronics companies are preparing to increase investments in Texas, with major announcements expected in May, coinciding with President Donald Trump’s first 100 days in office. Richard Lee, head of the Taiwan Electrical and Electronic Manufacturers’ Association, revealed that several large Taiwanese companies, particularly those in the AI server industry, are looking to expand their operations in Texas. This follows proactive efforts by Texas’ Republican-led government to attract Taiwanese investment.

The move comes as Trump has criticised Taiwan for its semiconductor business and threatened tariffs on trade partners with significant trade deficits, potentially targeting Taiwan. Last week, Taiwan’s President Lai Ching-te pledged to invest more in the US, adding to the momentum. Companies like Foxconn, Compal, and Inventec, which already have operations in Texas, are expected to announce further expansions, particularly to accommodate the growing demand for AI-related technologies.

Foxconn, which manufactures products for major tech companies like Apple and Nvidia, has already made a $33 million investment in land and factory buildings in Texas. With the demand for AI servers rising, Taiwanese manufacturers are eyeing Texas as a strategic location to meet the growing market needs. However, neither Foxconn nor Compal has yet provided specific details on their plans.

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Data centre growth in Europe set to break records

Europe is on track for an unprecedented expansion in data centre capacity this year, according to new research from CBRE. The commercial real estate firm projects that 937 megawatts of new capacity will come online in 2025, a 43% increase from 2024. This surge is being fuelled by growing demand for artificial intelligence and cloud computing, despite challenges in securing power and land.

Over half of this new capacity is expected in key markets such as Frankfurt, London, Amsterdam, Paris, and Dublin. Secondary markets, including Milan and Madrid, are also experiencing rapid growth, with seven locations forecast to surpass 100MW of supply by the end of the year.

The ongoing boom is driven by several factors, including government incentives, land availability, and the ambitions of major cloud providers. ‘The data centre construction boom will continue unabated,’ said Kevin Restivo, CBRE’s head of European data centre research, highlighting the sector’s resilience despite infrastructure challenges.

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Apptronik expands humanoid robot production with new investment

AI robotics company Apptronik has raised $350 million in a funding round led by B Capital and Capital Factory, with participation from Google. The Texas-based firm is focused on scaling production of Apollo, its humanoid robot designed to perform warehouse and manufacturing tasks such as moving packages and handling logistics.

Apptronik is competing with major players like Tesla and Figure AI in the rapidly advancing field of humanoid robotics, where artificial intelligence is driving new breakthroughs. CEO Jeff Cardenas compared this moment in robotics to the rise of large language models in 2023, predicting that 2025 will see significant developments in automation.

The company plans to expand Apollo’s capabilities into other industries, including elder care and healthcare. It has also partnered with Google DeepMind’s robotics team and secured commercial agreements with Mercedes-Benz and GXO Logistics, positioning itself as a key player in the evolving robotics landscape.

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Google’s India policy head resigns amid market challenges

Google’s head of public policy in India, Sreenivasa Reddy, has stepped down, marking the second high-profile exit from the role in two years. Reddy, who joined the company in September 2023 after stints at Microsoft and Apple, played a crucial role in navigating regulatory challenges while Google expanded its services in India. The company confirmed his departure but declined to provide further details.

India remains a critical market for Google, with the majority of the country’s smartphones running on its Android system. The tech giant has faced increasing scrutiny from regulators over antitrust issues, even as it continues to grow its presence with local manufacturing and AI investments.

In the interim, Iarla Flynn, Google’s policy head for northern Europe, will take over the role. The company reaffirmed its commitment to the Indian market, emphasising its long-term vision despite the ongoing leadership changes.

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Ray-Ban Meta sales drive smart glasses growth

EssilorLuxottica is set to ramp up production of its smart glasses, driven by the success of its Ray-Ban Meta range developed in partnership with Meta. Since their launch in September 2023, over two million units have been sold, with growing user engagement indicating a shift towards mainstream adoption.

The eyewear giant, which has collaborated with Meta since 2019, aims to expand its smart glasses portfolio with new brands and features. The company is also considering subscription-based services and additional functionalities to enhance user experience.

To meet rising demand, EssilorLuxottica plans to increase production capacity to 10 million units annually by the end of next year. Manufacturing will be expanded across China and Southeast Asia, enabling the company to support future product releases, including the development of Nuance Audio glasses with integrated hearing solutions.

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Elon Musk’s xAI unveils Grok-3, taking on AI giants

Elon Musk’s AI startup, xAI, has unveiled its latest AI model, Grok-3, which the billionaire claims is the most advanced chatbot technology. In a live-streamed presentation, Musk and his engineers demonstrated how Grok-3 outperforms competitors, including OpenAI’s GPT-4o and Google’s Gemini, across math, science, and coding benchmarks. With over ten times the computational power of its predecessor, Grok-3 completed pre-training in early January and is now continuously evolving, Musk said, promising visible improvements within just 24 hours.

A key innovation introduced with Grok-3 is DeepSearch, an advanced reasoning chatbot designed to enhance search capabilities by providing transparent explanations of how it processes queries. The feature allows users to engage in research, brainstorming, and data analysis more deeply and clearly. The model is being rolled out immediately to X’s Premium+ subscribers, with an upcoming SuperGrok subscription planned for mobile and web platforms.

The launch marks another escalation in the rivalry between Musk’s xAI and OpenAI, the company he co-founded but later distanced himself from. Musk has been openly critical of OpenAI’s shift toward a for-profit model and recently filed lawsuits against the organisation, accusing it of betraying its founding principles. His bid to acquire OpenAI’s nonprofit arm for $97.4 billion was rejected last week, with OpenAI’s CEO, Sam Altman, dismissing the offer as an attempt to hinder the company’s progress.

Why does it matter?

The AI sector is experiencing an unprecedented investment boom, with xAI reportedly seeking to raise $10 billion in new funding, potentially pushing its valuation to $75 billion. Meanwhile, OpenAI is in talks to raise as much as $40 billion, which could boost its valuation to an astonishing $300 billion. These soaring numbers highlight the capital-intensive nature of AI development, with global tech giants and investment groups pouring billions into the race to dominate AI.

However, new challenges are emerging. Last month, Chinese AI firm DeepSeek introduced R1, an open-source model that matched or surpassed leading American AI systems on key industry benchmarks. The company claims it developed R1 at a fraction of the cost incurred by its US counterparts, suggesting that the dominance of firms like OpenAI and xAI could face disruption from more cost-efficient alternatives shortly.

Indian music industry joins lawsuit against OpenAI

Several of India’s leading Bollywood music labels, including T-Series, Saregama, and Sony, seek to join a lawsuit against OpenAI in New Delhi. They are concerned that the company’s AI models may have used their sound recordings without permission, potentially violating copyright laws. The legal action follows a previous lawsuit filed by Indian news agency ANI, which accused OpenAI’s ChatGPT of using content without authorisation to train its models. The music labels argue that this issue has significant implications for the global music industry.

The music companies, which represent major Indian and international music acts, claim that OpenAI’s AI systems could extract lyrics, compositions, and sound recordings from the internet without consent. T-Series, known for releasing thousands of songs annually, and Saregama, which holds a vast catalogue of iconic Indian music, are leading the charge. The Indian Music Industry (IMI), which also represents global labels like Sony Music and Warner Music, is pushing for the case to be heard in court, as the outcome could impact the future use of copyrighted content in AI training.

OpenAI, backed by Microsoft, argues that it adheres to fair-use principles by using publicly available data to build its AI models. However, the company is facing increasing legal pressure from multiple sectors worldwide, including recent lawsuits in Germany, where GEMA accused OpenAI of unlicensed use of song lyrics. OpenAI has opposed the Indian lawsuit, claiming that Indian courts do not have jurisdiction over the matter, given the company’s US base.

The next court hearing, which could shape the future of AI and copyright law in India, is scheduled for 21 February. This legal battle is gaining attention, particularly as OpenAI’s chief, Sam Altman, recently visited India to discuss the country’s plans for developing low-cost AI technology.

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Study warns of AI’s role in fueling bank runs

A new study from the UK has raised concerns about the risks of bank runs fueled by AI-generated fake news spread on social media. The research, published by Say No to Disinfo and Fenimore Harper, highlights how generative AI can create false stories or memes suggesting that bank deposits are at risk, leading to panic withdrawals. The study found that a significant portion of UK bank customers would consider moving their money after seeing such disinformation, especially with the speed at which funds can be transferred through online banking.

The issue is gaining traction globally, with regulators and banks worried about the growing role of AI in spreading malicious content. Following the collapse of Silicon Valley Bank in 2023, which saw $42 billion in withdrawals within a day, financial institutions are increasingly focused on detecting disinformation that could trigger similar crises. The study estimates that a small investment in social media ads promoting fake content could cause millions in deposit withdrawals.

The report calls for banks to enhance their monitoring systems, integrating social media tracking with withdrawal monitoring to better identify when disinformation is impacting customer behaviour. Revolut, a UK fintech, has already implemented real-time monitoring for emerging threats, urging financial institutions to be prepared for potential risks. While banks remain optimistic about AI’s potential, the financial stability challenges it poses are still a growing concern for regulators.

As financial institutions work to mitigate AI-related risks, the broader industry is also grappling with how to balance the benefits of AI with the threats it may pose. UK Finance, the industry body, emphasised that banks are making efforts to manage these risks, while regulators continue to monitor the situation closely.

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