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CMA investigates major tech firms under new digital powers

The UK’s Competition and Markets Authority (CMA) has announced plans to begin two investigations this month under its new digital markets powers. These measures focus on encouraging investment, innovation, and growth while targeting the largest tech firms.

Only companies designated with ‘Strategic Market Status’ (SMS) will face these investigations, with the bar for SMS status set high. Apple and Google were previously identified for potentially limiting competition in mobile ecosystems. Further details on the investigations will be revealed soon, with a third inquiry expected in about six months.

Each investigation will be completed within nine months. The CMA aims to prevent large tech firms from favouring their services over smaller competitors and to make switching digital providers easier for consumers.

The regulator, which has gained greater merger control powers post-Brexit, was urged by Prime Minister Keir Starmer to focus more on growth. The new regime seeks to balance market competitiveness with the UK’s appeal for tech investment.

Faculty AI develops AI for military drones

Faculty AI, a consultancy company with significant experience in AI, has been developing AI technologies for both civilian and military applications. Known for its close work with the UK government on AI safety, the NHS, and education, Faculty is also exploring the use of AI in military drones. The company has been involved in testing AI models for the UK’s AI Safety Institute (AISI), which was established to study the implications of AI safety.

While Faculty has worked extensively with AI in non-lethal areas, its work with military applications raises concerns due to the potential for autonomous systems in weapons, including drones. Though Faculty has not disclosed whether its AI work extends to lethal drones, it continues to face scrutiny over its dual roles in advising both the government on AI safety and working with defense clients.

The company has also generated some controversy because of its growing influence in both the public and private sectors. Some experts, including Green Party members, have raised concerns about potential conflicts of interest due to Faculty’s widespread government contracts and its private sector involvement in AI, such as its collaborations with OpenAI and defence firms. Faculty’s work on AI safety is seen as crucial, but critics argue that its broad portfolio could create a risk of bias in the advice it provides.

Despite these concerns, Faculty maintains that its work is guided by strict ethical policies, and it has emphasised its commitment to ensuring AI is used safely and responsibly, especially in defence applications. As AI continues to evolve, experts call for caution, with discussions about the need for human oversight in the development of autonomous weapons systems growing more urgent.

UK regulator considers remedies for Synopsys-Ansys deal

The UK‘s competition regulator, the Competition and Markets Authority (CMA), announced it may accept remedies proposed by Synopsys and Ansys to address concerns over their $35 billion merger. The deal, announced in January of last year, involves Synopsys acquiring Ansys, a company known for its software used in industries like aerospace and sports equipment manufacturing.

The CMA outlined the proposed remedies, which include the sale of Ansys’ power consumption analysis product for digital chips and Synopsys’ global optics and photonics software business. The regulator has until March 5 to decide whether to accept these remedies, though it can extend the deadline to 6 May.

Synopsys expressed satisfaction with the CMA’s progress and reiterated its commitment to working closely with the authority. The outcome of the regulator’s review could significantly impact the completion of the merger, which aims to enhance the companies’ capabilities in chip design software.

US tech leaders oppose proposed export limits

A prominent technology trade group has urged the Biden administration to reconsider a proposed rule that would restrict global access to US-made AI chips, warning that the measure could undermine America’s leadership in the AI sector. The Information Technology Industry Council (ITI), representing major companies like Amazon, Microsoft, and Meta, expressed concerns that the restrictions could unfairly limit US companies’ ability to compete globally while allowing foreign rivals to dominate the market.

The proposed rule, expected to be released as soon as Friday, is part of the Commerce Department’s broader strategy to regulate AI chip exports and prevent misuse, particularly by adversaries like China. The restrictions aim to curb the potential for AI to enhance China’s military capabilities. However, in a letter to Commerce Secretary Gina Raimondo, ITI CEO Jason Oxman criticised the administration’s urgency in finalising the rule, warning of ‘significant adverse consequences’ if implemented hastily. Oxman called for a more measured approach, such as issuing a proposed rule for public feedback rather than enacting an immediate policy.

Industry leaders have been vocal in their opposition, describing the draft rule as overly broad and damaging. The Semiconductor Industry Association raised similar concerns earlier this week, and Oracle’s Executive Vice President Ken Glueck slammed the measure as one of the most disruptive ever proposed for the US tech sector. Glueck argued the rule would impose sweeping regulations on the global commercial cloud industry, stifling innovation and growth.

While the administration has yet to comment on the matter, the growing pushback highlights the tension between safeguarding national security and maintaining US dominance in the rapidly evolving field of AI.

Meta ends fact-checking program in the US

Meta Platforms has announced the termination of its US fact-checking program and eased restrictions on politically charged discussions, such as immigration and gender identity. The decision, which affects Facebook, Instagram, and Threads, marks a significant shift in the company’s content moderation strategy. CEO Mark Zuckerberg framed the move as a return to ‘free expression,’ citing recent US elections as a cultural tipping point. The changes come as Meta seeks to build rapport with the incoming Trump administration.

In place of fact-checking, Meta plans to adopt a ‘Community Notes’ system, similar to that used by Elon Musk’s platform X. The company will also scale back proactive monitoring of hate speech, relying instead on user reports, while continuing to address high-severity violations like terrorism and scams. Meta is also relocating some policy teams from California to other states, signalling a broader operational shift. The decision follows the promotion of Republican policy executive Joel Kaplan to head of global affairs and the appointment of Trump ally Dana White to Meta’s board.

The move has sparked criticism from fact-checking organisations and free speech advocates. Angie Drobnic Holan, head of the International Fact-Checking Network, pushed back against Zuckerberg’s claims of bias, asserting that fact-checkers provide context rather than censorship. Critics, including the Centre for Information Resilience, warn that the policy rollback could exacerbate disinformation. For now, the changes will apply only to the US, with Meta maintaining its fact-checking operations in regions like the European Union, where stricter tech regulations are in place.

As Meta rolls out its ‘Community Notes’ system, global scrutiny is expected to intensify. The European Commission, already investigating Musk’s X over similar practices, noted Meta’s announcement and emphasised compliance with the EU’s Digital Services Act, which mandates robust content regulation. While Meta navigates a complex regulatory and political landscape, the impact of its new policies on disinformation and public trust remains uncertain.

Apple faces continued iPhone ban in Indonesia

Apple remains unable to sell its iPhone 16 in Indonesia despite agreeing to build a production facility in the country, according to Indonesia’s industry minister, Agus Gumiwang Kartasasmita. The ban stems from regulations requiring smartphones sold domestically to include at least 35% locally-made components—a threshold Apple has not met.

While Apple plans to invest $1 billion in a facility on Batam island to produce its Airtag tracking devices, the industry ministry clarified that this does not qualify as contributing to iPhone production. Kartasasmita emphasised that only phone components would satisfy the local content rules necessary for certification to sell iPhones in Indonesia.

Apple, which lacks manufacturing facilities in the country, has maintained its presence through application developer academies since 2018. Despite two days of discussions between Kartasasmita and Apple’s vice president of global government affairs, Nick Ammann, the company’s proposals for ‘innovative investment’ failed to meet Indonesia’s regulatory standards for smartphone sales.

The planned Batam facility, expected to launch operations next year, underscores Apple’s interest in expanding its footprint in Indonesia, a nation of 280 million people. However, the iPhone 16’s path to market in the region remains uncertain.

Amazon invests $11 billion in Georgia

Amazon Web Services (AWS) has announced a $11 billion investment to build new data centres in Georgia, aiming to support the growing demand for cloud computing and AI technologies. The facilities, located in Butts and Douglas counties, are expected to create at least 550 high-skilled jobs and position Georgia as a leader in digital innovation.

The move highlights a broader trend among tech giants investing heavily in AI-driven advancements. Last week, Microsoft revealed an $80 billion plan for fiscal 2025 to expand data centres for AI training and cloud applications. These facilities are critical for supporting resource-intensive AI technologies like machine learning and generative models, which require vast computational power and specialised infrastructure.

The surge in AI infrastructure has also raised concerns about energy consumption. A report from the Electric Power Research Institute suggests data centres could account for up to 9% of US electricity usage by 2030. To address this, Amazon has secured energy supply agreements with utilities like Talen Energy in Pennsylvania and Entergy in Mississippi, ensuring reliable power for its expanding operations.

Amazon’s commitment underscores the growing importance of AI and cloud services, as companies race to meet the demands of a rapidly evolving technological landscape.

Anthropic in talks to raise $2 billion at $60 billion valuation

AI startup Anthropic is reportedly in advanced discussions to secure $2 billion in funding, potentially valuing the company at $60 billion. The funding round is being led by venture capital firm Lightspeed Venture Partners, according to sources cited by the Wall Street Journal. The company, known for its Claude chatbot, was valued at around $18 billion in 2024 following a fundraising round led by Menlo Ventures.

Investor interest in Anthropic has grown significantly, with Amazon doubling its investment in the company to $8 billion last year as part of its push into generative AI. Alphabet has also pledged up to $2 billion in backing, further reinforcing the startup’s position as a key player in the AI sector. The company was founded by former OpenAI executives Dario and Daniela Amodei, who left the firm to develop their own AI models.

Competition in the AI industry remains fierce, with OpenAI, backed by Microsoft, leading the charge after launching ChatGPT in 2022. OpenAI recently secured $6.6 billion in funding, bringing its valuation to an estimated $157 billion. The race to dominate the AI market has intensified, with major tech firms investing heavily in developing next-generation AI models.

Serve Robotics raises $80 million to expand delivery robot fleet

Serve Robotics, backed by Nvidia and Uber, has secured $80 million through a direct stock offering to institutional investors. The funding will support the expansion of its autonomous delivery robot fleet, with plans to scale from 100 robots in Los Angeles to 2,000 across multiple US cities by the end of 2025. CFO Brian Read stated that the investment is intended for long-term growth rather than short-term expenditure, positioning the company for sustained financial stability beyond 2026.

The fresh capital follows $86 million raised in December 2024, bringing Serve’s total funding to over $247 million in the past year. The company aims to use its reserves to self-finance equipment investments, reducing reliance on external financing and improving cash flow. Read highlighted that full ownership of the robots would provide greater financial flexibility and lower operational costs as the fleet expands.

Currently, Serve operates around 100 robots in Los Angeles, delivering for Uber Eats and 7-Eleven. A trial in Dallas, launched in partnership with Wing, is exploring hybrid drone and sidewalk robot deliveries. The company plans to deploy 250 additional robots in Los Angeles in early 2025, with the goal of achieving cash-flow positivity once the 2,000-robot fleet reaches full utilisation.

Meta appoints three new board directors

Meta Platforms has elected three new directors to its board, including Dana White, CEO of Ultimate Fighting Championship (UFC) and a close associate of President-elect Donald Trump. Investor and former Microsoft executive Charlie S o nghurst and Exor CEO John Elkann have also joined. Meta CEO Mark Zuckerberg said their expertise would help the company navigate opportunities in artificial intelligence, wearables, and digital connectivity.

White’s appointment strengthens his ties with Zuckerberg, who has become a mixed martial arts enthusiast. The two have shared public exchanges in recent years, with Zuckerberg attending UFC events at White’s invitation. Songhurst has been involved in Meta’s AI advisory group since May, while Elkann holds leadership roles at Ferrari and Stellantis, alongside chairing the Agnelli Foundation.

Zuckerberg has been adjusting Meta’s strategy ahead of a possible second Trump presidency. The company recently promoted Republican policy expert Joel Kaplan and donated $1 million to Trump’s inaugural fund, signalling a shift in its political stance. Meta has also acknowledged past content decisions that were unpopular among conservatives as it prepares for the evolving political landscape.