Digital business models Archives | Page 498 of 571

Microsoft sues hackers over AI security breach

Microsoft has taken legal action against a group accused of bypassing security measures in its Azure OpenAI Service. A lawsuit filed in December alleges that the unnamed defendants stole customer API keys to gain unauthorised access and generate content that violated Microsoft’s policies. The company claims the group used stolen credentials to develop hacking tools, including software named de3u, which allowed users to exploit OpenAI’s DALL-E image generator while evading content moderation filters.

An investigation found that the stolen API keys were used to operate an illicit hacking service. Microsoft alleges the group engaged in systematic credential theft, using custom-built software to process and route unauthorised requests through its cloud AI platform. The company has also taken steps to dismantle the group’s technical infrastructure, including seizing a website linked to the operation.

Court-authorised actions have enabled Microsoft to gather further evidence and disrupt the scheme. The company says additional security measures have been implemented to prevent similar breaches, though specific details were not disclosed. While the case unfolds, Microsoft remains focused on strengthening its AI security protocols.

China to tighten oversight of online platforms and livestream e-commerce

China’s State Administration for Market Regulation (SAMR) announced plans to strengthen regulations on online platforms and the growing livestream e-commerce sector. The move aims to foster fair competition, protect smaller businesses, and improve consumer trust, according to SAMR Deputy Head Shu Wei.

At a press briefing, Shu highlighted plans to enhance transparency, reduce merchants’ operational costs, and address concerns over platform practices that disrupt fair competition. The regulator aims to improve existing frameworks to safeguard merchants’ and consumers’ rights against platform rule abuse.

The SAMR also intends to crack down on deceptive marketing in livestream e-commerce, a sector experiencing rapid growth but facing criticism for misleading tactics. The initiative is expected to address dishonest practices while ensuring a healthier and more balanced market environment.

Lemon8 gains popularity amid TikTok uncertainty

As the possibility of a US TikTok ban looms, social media influencers are increasingly turning to Lemon8, a new app owned by TikTok’s parent company, ByteDance, as a potential alternative. Lemon8, which launched in the US and UK in 2023, combines the best aspects of Instagram and Pinterest, offering a “lifestyle community” with an emphasis on aesthetically pleasing images, videos, and lifestyle topics like beauty, fashion, food, travel, and pets. With over 1 million daily active users in the US, it has quickly gained traction, especially among Gen Z users.

Influencers are particularly drawn to Lemon8’s integration with TikTok, allowing creators to easily cross-post and boost engagement. Despite the platform’s appeal, however, Lemon8’s future remains uncertain. Like TikTok, it is owned by ByteDance, making it potentially subject to the same US regulations, including a law requiring the company to divest from TikTok or face a ban. This uncertainty is causing anxiety among creators who fear the loss of their primary platform and are seeking safer options like Lemon8.

The app itself is gaining attention for its simplicity and visual appeal. Lemon8 stands out by offering a quieter, less chaotic environment compared to the bustling, ad-heavy content on Instagram and TikTok. Its user interface is designed for easy scrolling, and the app encourages creativity through tools that enhance text, stickers, and music, making posts feel inspirational. While it’s still early days, Lemon8 offers a nostalgic, aesthetically curated space for users who may be growing weary of the larger social media giants.

Though the app is still new, it could provide a refreshing change from the current social media landscape, where content can often feel oversaturated or too commercialised. For now, Lemon8 offers a simpler, more intentional way to engage with online content—a return to a more “authentic” era of social media, reminiscent of earlier Instagram days. Whether it will succeed in the long term remains to be seen, but for now, it’s carving out a niche for users seeking a quieter digital space.

Digital art website crippled by OpenAI bot scraping

Triplegangers, was forced offline after a bot from OpenAI relentlessly scraped its website, treating it like a distributed denial-of-service (DDoS) attack. The AI bot sent tens of thousands of server requests, attempting to download hundreds of thousands of detailed 3D images and descriptions from the company’s extensive database of digital human models.

The sudden spike in traffic crippled Ukrainian Triplegangers’ servers and left CEO Oleksandr Tomchuk grappling with an unexpected problem. The company, which sells digital assets to video game developers and 3D artists, discovered that OpenAI’s bot operated across hundreds of IP addresses to gather its data. Despite having terms of service that forbid such scraping, the company had not configured the necessary robot.txt file to block the bot.

After days of disruption, Tomchuk implemented protective measures by updating the robot.txt file and using Cloudflare to block specific bots. However, he remains frustrated by the lack of transparency from OpenAI and the difficulty in determining exactly what data was taken. With rising costs and increased monitoring now necessary, he warns that other businesses remain vulnerable.

Tomchuk criticised AI companies for placing the responsibility on small businesses to block unwanted scraping, comparing it to a digital shakedown. “They should be asking permission, not just scraping data,” he said, urging companies to take greater precautions against AI crawlers that can compromise their sites.

Infosys files counterclaim against Cognizant in Texas court

Infosys has filed a counterclaim against Cognizant in a Texas federal court, accusing the US-based technology firm of anti-competitive behaviour. The Indian company alleges that Cognizant included restrictive clauses in client contracts, preventing them from working with rival firms and withholding necessary software training.

The Bengaluru-based software giant also claims Cognizant engaged in targeted poaching of its senior executives. The hiring of former Infosys president S Ravi Kumar as Cognizant’s CEO in 2023 allegedly delayed the development of Infosys’ Helix software product.

Cognizant denied the allegations, stating it supports fair competition but accused Infosys of improperly using its intellectual property. The counterclaim follows a 2023 lawsuit by Cognizant’s subsidiary TriZetto, which accused Infosys of stealing trade secrets related to healthcare insurance software.

Infosys is seeking damages, including legal fees, but did not disclose the amount. The case is being heard in the US District Court for the Northern District of Texas.

Starmer unveils ambitious plan to position UK as global leader in AI technology

British Prime Minister Keir Starmer has announced an ambitious plan to position the UK as a global leader in AI. In a speech on Monday, Starmer outlined proposals to establish specialised zones for data centres and incentivise technology-focused education, aiming to boost economic growth and innovation. According to the government, fully adopting AI could increase productivity by 1.5% annually, adding £47 billion ($57 billion) to the economy each year over the next decade.

Central to the plan is the adoption of recommendations from the “AI Opportunities Action Plan,” authored by venture capitalist Matt Clifford. Measures include fast-tracking planning permissions for data centres and ensuring energy connections, with the first such centre to be built in Culham, Oxfordshire. Starmer emphasised the potential for AI to create jobs, attract investment, and improve lives by streamlining processes like planning consultations and reducing administrative burdens for teachers.

The UK, currently the third-largest AI market behind the US and China, faces stiff global competition in establishing itself as an AI hub. While Starmer pledged swift action to maintain competitiveness, challenges persist. The Labour government’s recent high-tax budget has dampened some business confidence, and the Bank of England reported stagnation in economic growth last quarter. However, Starmer remains optimistic, declaring, “We must move fast and take action.”

By integrating AI into its economic strategy, the UK hopes to capitalise on technological advancements, balancing innovation with regulatory oversight in an increasingly competitive global landscape.

Humanoid robot, China’s answer to AI-powered assistance

A Chinese robotics firm has unveiled its latest innovation, a humanoid robot called the D9, which aims to redefine the relationship between humans and machines in everyday tasks. Created by Shenzhen-based Pudu Robotics, the D9 stands 5.57 feet tall and is designed to carry out a wide range of duties across various industries, from warehouses to retail stores.

The Chinese D9 robot boasts advanced capabilities, including the ability to walk at 4.5 mph, navigate stairs, and carry loads up to 44 pounds. What sets it apart is its use of cutting-edge sensors to create real-time 3D maps, allowing for precise self-navigation. Additionally, it features “human-level” natural interactions through sophisticated AI, making it more intuitive to work alongside people in fast-paced environments.

Pudu Robotics is entering a competitive market dominated by global tech giants like Tesla, with their Optimus robot. While the D9’s price is yet to be announced, it is expected to be in a similar range to its rivals, around £16,000 to £24,000. The robot’s versatility could make it an attractive option for companies looking to streamline labour-intensive operations.

As humanoid robots like the D9 advance, they raise important questions about the future of work and human-machine interactions. Pudu’s latest creation may be a glimpse into a world where robots play an ever-larger role in both professional and personal settings.

Meta and Amazon scale back diversity programs amid changing political climate

Meta Platforms and Amazon have announced plans to wind down their diversity, equity, and inclusion (DEI) initiatives, reflecting shifting political and legal land scapes as Donald Trump prepares to return to the US presidency. Meta, in an internal memo, revealed it is discontinuing DEI programs related to hiring, training, and supplier selection, while Amazon is phasing out its representation and inclusion efforts, targeting completion by late 2024.

These moves come amid growing conservative opposition to DEI initiatives, which critics argue promote preferential treatment. The trend has gained momentum following a 2023 Supreme Court ruling that struck down affirmative action in university admissions. Meta Vice President Janelle Gale noted the legal shift, explaining that the term ‘DEI’ has become polarising, and courts are signalling changes in their approach to such programs.

Meta has also made high-profile changes to align with conservative leadership, elevating Republican Joel Kaplan as its chief global affairs officer and adding UFC CEO Dana White, a close Trump ally, to its board. The company’s relationship with Trump has softened recently, with Meta pledging $1 million to his inaugural fund in December. These developments mark a departure from the company’s previous focus on inclusive policies following the 2020 protests against racial injustice.

As political and cultural pressures mount, corporate America’s retreat from DEI programs signals a broader shift in how businesses approach diversity and inclusion, navigating the intersection of public sentiment, legal rulings, and political dynamics.

Smart garbage trucks target battery dangers

A US waste management firm has introduced AI-powered electric garbage trucks to reduce fire risks caused by improperly disposed lithium-ion batteries. The vehicles, showcased at the Consumer Electronics Show (CES) in Las Vegas, can detect batteries in rubbish loads before they reach recycling centres, preventing potential fires.

Lithium-ion batteries, commonly used in gadgets like phones and toothbrushes, are highly flammable and often slip through existing detection systems at recycling facilities. Fires linked to these batteries have caused significant damage, with several US recycling centres burning down annually. The new trucks allow drivers to flag sensitive collections and alert facilities in advance.

The advanced trucks, developed by industrial firm Oshkosh, also come with electric arm technology to speed up collections and AI software to spot contamination in recycling bins. These features help reduce risks, improve efficiency, and allow companies to hold customers accountable for improper recycling. Waste management officials see electrification as a key step, as garbage trucks typically travel shorter distances, making them ideal for battery-powered operation.

Taiwan eyes minimal disruption from US import policies

Taiwan is optimistic about the limited impact of US President-elect Donald Trump’s proposed tariffs on semiconductor exports, citing the nation’s technological edge in the global chip industry. On Friday, economy Minister Kuo Jyh-huei emphasised that Taiwan’s advanced semiconductor processes, led by industry giant TSMC, maintain an irreplaceable position in the supply chain for major companies like Apple and Nvidia.

Despite Trump’s pledges for sweeping tariffs—10% on global imports and up to 60% on Chinese goods—Taiwanese policymakers acknowledged potential challenges for the island’s export-driven economy. However, Kuo reassured that the chip sector’s resilience lies in its technological leadership, which mitigates the risk of significant disruption.

To adapt to the shifting trade landscape, Taiwan plans to help companies relocate parts of their supply chains to the United States if necessary. The island also aims to deepen cooperation in industries like aerospace and advanced technology by fostering ties with US and Japanese firms. This includes establishing a dedicated office in Japan to bolster collaboration on AI and drone development, Kuo said.

Taiwan’s proactive approach reflects its strategic positioning in global trade and its commitment to maintaining robust economic ties amid evolving US policies.