AI pets gain popularity in China for emotional support

Across China, artificial intelligence-powered ‘smart pets’ are becoming a popular solution for emotional relief, particularly among younger generations. These devices, such as the BooBoo robot produced by Hangzhou Genmoor Technology, offer companionship through lifelike interactions. Nineteen-year-old Zhang Yachun, for example, says her AI pet, Aluo, has helped her cope with anxiety and feelings of isolation.

The market for ‘social robots’ is rapidly growing, with estimates projecting a sevenfold increase to $42.5 billion globally by 2033. While initially designed for children, these AI companions are increasingly appealing to adults and families. Some view the robots as tools to supplement limited time with children, though sceptics note the lack of emotional depth compared to real pets.

Experts attribute the rise in AI pets to societal changes, including China‘s one-child policy, economic pressures, and evolving family dynamics. These robots, which can mimic behaviours and provide emotional stimulation, serve as an outlet for individuals who feel disconnected. For Zhang, Aluo has also fostered better communication with her parents, highlighting the role AI companions can play in bridging gaps in human relationships.

Tackling fake news: Japan teams up with Google and NTT Docomo

The Japanese government has launched a new initiative, “Digital Positive Action,” to tackle the spread of online disinformation. The project, spearheaded by the communications ministry, brings together 19 firms and organisations, including Google, NTT Docomo, Meta, and the operator of Japan’s messaging app Line. The collaboration will focus on creating a dedicated website and educational materials to counter false information.

The initiative seeks to address how disinformation is often amplified for profit through higher engagement and advertising revenue. By consulting with public and private sectors, the government aims to make credible information more accessible and equip users with tools to recognise and resist misleading content.

Parliamentary Vice Communications Minister Hideto Kawasaki emphasised the goal of fostering a safer digital environment, while Keio University professor Tatsuhiko Yamamoto highlighted the need to shift societal attitudes, discouraging the pursuit of attention at any cost. With tech giants on board, Japan hopes to lead the charge in curbing the harmful effects of disinformation online.

Databricks secures $10 billion backing from Meta

Meta Platforms has joined a $10 billion investment round for Databricks, a data analytics firm specialising in AI applications. The funding, which closed on Wednesday, values the San Francisco-based company at $62 billion. This round also included a $5.25 billion credit facility led by major financial institutions such as JPMorgan Chase and Goldman Sachs, aimed at boosting Databricks’ expansion and product development efforts.

Founded in 2013, Databricks provides tools to help businesses process, analyse, and apply artificial intelligence to complex datasets. The firm has benefited from the increasing corporate demand for AI technology, catalysed by the rapid adoption of platforms like OpenAI’s ChatGPT. Meta’s investment strengthens an existing partnership between the two, particularly in leveraging Meta’s Llama, a family of open-source large language models.

With over 10,000 organisations, including Shell and Comcast, already utilising its platform, Databricks is at the forefront of enterprise AI applications. According to CEO Ali Ghodsi, this deepened collaboration with Meta will help Databricks better serve enterprise clients using Llama, further solidifying its position in the AI race.

UK government shakes up CMA leadership

Marcus Bokkerink has been removed from his position as chair of the Competition and Markets Authority (CMA) by the UK government, marking a shift in regulatory practices aimed at boosting economic growth. The CMA, a key agency overseeing mergers and competition, had recently paused the high-profile Microsoft-Activision Blizzard merger, showcasing its regulatory power. Bokkerink, appointed in 2022, was expected to serve a five-year term but will now step down as part of the government’s effort to realign regulatory bodies with its economic priorities.

This decision reflects a broader governmental push to reduce barriers to economic expansion. Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Business Secretary Jonathan Reynolds recently sent a letter to several regulators, including the CMA, urging them to prioritize growth. Government insiders have suggested that the move signals a serious commitment to reshaping the regulatory environment to encourage investment and economic development.

The removal of Bokkerink, a former senior partner at Boston Consulting Group, comes as the government continues to focus on attracting international investment, with key figures like Reeves and Reynolds attending the World Economic Forum in Davos to further this goal. The government’s efforts to reshape regulatory culture align with its broader strategy to make economic growth the country’s top priority.

India watchdog demands fresh probe into Foxconn hiring

India’s National Human Rights Commission (NHRC) has rebuked labour officials for inadequately investigating claims of employment discrimination at Foxconn’s iPhone manufacturing plant in Tamil Nadu. The commission called for a thorough re-examination after a Reuters investigation revealed that Foxconn systematically excluded married women from assembly line jobs, relaxing the rule only during high-production periods.

Labour officials, who visited the Foxconn plant in July, reported that 6.7% of its 33,360 female workers were married but failed to confirm whether they worked on the assembly line. Federal investigators also relied on employee testimonies, finding no wage or promotion bias but neglected to scrutinise recruitment records. The NHRC criticised these findings as superficial, stating they failed to address the alleged discriminatory hiring practices effectively.

Foxconn and Apple, both key players in India‘s electronics manufacturing push, did not respond to inquiries about the NHRC’s concerns. While Foxconn previously instructed recruiters to remove discriminatory job criteria, the NHRC has ordered a fresh investigation into the matter. The statutory body, which holds civil court-like authority, continues to push for accountability in safeguarding workers’ rights.

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.