ByteDance boosts AI spending to strengthen global presence

ByteDance, the Chinese tech giant behind TikTok, has allocated over 150 billion yuan ($20.64 billion) for capital expenditure this year, with a significant focus on AI, according to sources familiar with the matter. About half of the investment will support overseas AI infrastructure, including data centres and networking equipment. Beneficiaries of this spending are expected to include chipmakers Huawei, Cambricon, and US supplier Nvidia, although ByteDance has denied the accuracy of the claims.

The investment aims to solidify ByteDance’s AI leadership in China, where it has launched over 15 standalone AI applications, such as the popular chatbot Doubao, which boasts 75 million monthly active users. Its international counterparts include apps like Cici and Dreamina, reflecting ByteDance’s strategy to adapt its AI offerings globally. The company also recently updated its flagship AI model, Doubao, to rival reasoning models like those developed by Microsoft-backed OpenAI.

ByteDance’s international spending aligns with its efforts to expand AI capabilities abroad amid challenges like the uncertain future of TikTok in the United States. While ByteDance’s $20 billion plan is substantial, it remains modest compared to the AI investments of US tech giants like Google and Microsoft, which spent $50 billion and $55.7 billion respectively on AI infrastructure in the past year. The spending will also bolster ByteDance’s partnerships with suppliers such as Nvidia, from which it has procured custom AI chips tailored to China despite US export restrictions.

OpenAI defends itself in ANI copyright lawsuit in India

OpenAI has told an Indian court that removing training data used for its ChatGPT service would conflict with its legal obligations in the United States. The company, backed by Microsoft, is defending a copyright lawsuit filed by Indian news agency ANI, which accuses OpenAI of using its content without permission and demands the deletion of ANI’s data from ChatGPT’s memory.

In a January 10 filing, OpenAI argued that Indian courts lack jurisdiction as the company has no physical presence or data servers in India. It also emphasised its legal obligation in the US to preserve training data while litigation is ongoing. OpenAI denied wrongdoing, asserting its systems make fair use of publicly available data, a stance it has maintained in similar copyright disputes globally.

ANI insists the Delhi court has the authority to rule on the case, citing concerns over unfair competition and alleging that ChatGPT reproduces its content verbatim. OpenAI, however, countered that ANI manipulated prompts to elicit such responses. The court is set to hear the case on January 28, marking a key moment in India’s scrutiny of AI and copyright law.

UK launches investigation into Apple and Google dominance

Britain’s Competition and Markets Authority (CMA) has opened an investigation into the dominance of Apple and Google in the smartphone ecosystem. The probe will examine their operating systems, app stores, and browsers to determine whether their ‘strategic market status’ stifles competition and innovation, particularly for businesses developing content and services.

CMA Chief Executive Sarah Cardell emphasised the potential for more competitive mobile ecosystems to drive innovation and boost economic growth in the UK. Both Apple and Google defended their practices, with Apple highlighting its ecosystem’s support for jobs in Britain and Google pointing to Android’s openness as a driver of choice and affordability.

The investigation, the CMA’s second under new regulatory powers, will explore whether Apple and Google are leveraging their dominance unfairly by prioritising their apps and services or imposing restrictive terms on developers. A conclusion is expected by October 22, 2025, as Britain continues to tighten its oversight of major tech companies.

Moon-based data storage: A new frontier

Lonestar Data Holdings has unveiled plans to establish the first-ever data centre on the Moon, targeting a launch late next month aboard SpaceX’s Falcon 9 rocket. The data centre, named Freedom, will be integrated with Intuitive Machines’ Athena moon lander, leveraging the Moon’s unique environment for security and energy efficiency.

The company, led by CEO Chris Stott, views the lunar surface as an ideal location for secure, disaster-resilient data storage. Powered by solar energy and equipped with naturally cooled solid-state drives, Freedom is designed for non-latency-sensitive applications such as data recovery. Backup operations will be supported by a ground-based facility in Tampa, US.

As the demand for energy-intensive data centres grows on Earth, Lonestar joins a burgeoning space industry exploring off-planet solutions. While competitors like Lumen Orbit also seek a foothold in this nascent field, challenges remain. High launch costs, maintenance limitations, and the risk of mission failure loom large over these ambitious projects.

With initial funding of nearly $10 million and support from partners including the Isle of Man government and AI firm Valkyrie, Lonestar is set to push the boundaries of data storage and space technology.

Indian IT industry faces workforce evolution

Infosys, India’s second-largest software services exporter, anticipates a major shift in the way IT firms approach talent management. Speaking at the World Economic Forum in Davos, CTO Rafee Tarafdar highlighted the evolving market, driven by emerging technologies such as generative AI.

Tarafdar noted that the traditional ‘pyramid’ model, where most employees are at the entry level, may give way to a more dynamic framework. Infosys is actively experimenting with strategies to upskill its workforce while creating roles that did not exist before, including specialists in responsible AI and model engineering.

In addition to re-skilling existing employees, the company has developed bespoke small language models tailored to industries like banking and IT operations, offering these as services to clients. With AI creating both challenges and opportunities, Infosys believes a blend of evolving skills and innovative hiring will shape the future of tech talent.

As the IT sector grapples with rapid innovation, India’s Infosys remains focused on adapting its workforce to meet new demands, ensuring it remains at the forefront of the global technology industry.

TikTok’s return to US app stores still unclear

TikTok users in the United States remain in limbo as the popular app continues to be unavailable for download from Apple and Google app stores. The platform, owned by China’s ByteDance, resumed service following a temporary shutdown, but legal uncertainties have prevented its return to digital storefronts.

The impasse stems from a US law requiring ByteDance to divest TikTok or face a nationwide ban due to national security concerns. President Trump recently extended the enforcement deadline, sparking debates about potential buyers, including high-profile figures like Elon Musk. However, no clear resolution has emerged, leaving users and tech giants caught in legal purgatory.

Some frustrated fans have resorted to selling devices with TikTok pre-installed for exorbitant prices on platforms like eBay. Others are attempting workarounds, such as location changes or VPNs, to regain access. Despite these efforts, confusion about TikTok’s long-term future has prompted some users to abandon the app entirely, citing dissatisfaction with political interference.

As negotiations continue, TikTok’s status in the US remains precarious, with both users and the company waiting anxiously for clarity on its fate.

China urges companies to decide TikTok’s future independently

China’s foreign ministry stated on Monday that companies should make independent decisions regarding their business operations and agreements. The remarks came in response to United States President-elect Donald Trump’s proposal requiring 50% US ownership of TikTok.

The proposed ownership demand has reignited tensions over the popular social media app, owned by Chinese company ByteDance, as US officials continue to express concerns over national security and data privacy. Chinese officials have consistently emphasised the importance of allowing businesses to operate without undue government interference.

TikTok, which boasts millions of users worldwide, has faced scrutiny in several countries over its links to China. The foreign ministry’s statement highlights Beijing’s stance that such matters should remain in the hands of corporations rather than being dictated by political decisions.

Survey links TikTok news consumption to scepticism on major global issues

A new poll by the Allensbach Institute reveals that Germans who rely on TikTok for news are less likely to view China as a dictatorship, criticise Russia’s invasion of Ukraine, or trust vaccines compared to consumers of traditional media. The findings suggest that the platform’s information ecosystem could contribute to scepticism about widely accepted narratives and amplify conspiracy theories. Among surveyed groups, TikTok users exhibited levels of distrust in line with users of X, formerly Twitter.

The study, commissioned by a foundation affiliated with Germany’s Free Democrats, comes amid ongoing US debates over the potential national security risks posed by the Chinese-owned app. The research highlights how young Germans, who make up TikTok’s largest user base, are more inclined to support the far-right Alternative for Germany (AfD) party, which has surged in popularity ahead of Germany’s upcoming election. By contrast, consumers of traditional media were significantly more supportive of Ukraine and critical of Russian aggression.

Concerns about misinformation on platforms like TikTok are echoed by researchers, who warn that foreign powers, particularly Russia, exploit social media to influence public opinion. The poll found that while 57% of newspaper readers believed China to be a dictatorship, only 28.1% of TikTok users shared the same view. Additionally, TikTok users were less likely to believe that China and Russia disseminate false information, while being more suspicious of their own government. Calls for action to address misinformation underscore the platform’s potential impact on younger, more impressionable audiences.

Google to invest over $1 billion in OpenAI rival Anthropic

Google is making a significant new investment in AI by committing more than $1 billion to Anthropic, according to a report by the Financial Times. Anthropic, a competitor to OpenAI, focuses on developing advanced AI models and tools, positioning itself as a major player in the growing AI sector.

The investment underscores Google’s ongoing commitment to bolstering its AI capabilities in a highly competitive market. As the race to dominate AI innovation intensifies, tech giants like Google are increasingly supporting smaller firms that specialise in cutting-edge developments to stay ahead.

Anthropic, founded in 2021 by former OpenAI executives, has quickly gained recognition in the AI community. The company aims to create more reliable and interpretable AI systems. Google’s backing is expected to strengthen Anthropic’s research and development efforts, further establishing it as a prominent force in the AI landscape.

Crypto firm CLS to plead guilty in US fraud investigation

CLS Global, a cryptocurrency financial services company based in the United Arab Emirates, has agreed to plead guilty to US charges of market manipulation. The company was implicated in “Operation Token Mirrors,” a groundbreaking FBI investigation that utilised an undercover digital token to expose fraud in the cryptocurrency sector. Prosecutors revealed CLS had engaged in illegal practices, including wash trading, to manipulate the market for a token created by the FBI.

The probe, launched last year, involved creating a fake cryptocurrency company and token called NexFundAI to uncover illicit activities. CLS admitted to providing fraudulent trading services for the token, artificially inflating its trading volume and price. As part of a plea deal, CLS will pay $428,059 in penalties, cease operations involving US cryptocurrency platforms, and adopt stricter compliance measures.

The case marks a major milestone in law enforcement’s efforts to regulate the cryptocurrency industry and combat fraudulent practices. Federal prosecutors described the operation as a model for tackling crypto-related crime, demonstrating the FBI’s innovative approach to targeting market manipulators. CLS also agreed to settle related civil charges with the US Securities and Exchange Commission.