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OpenAI calls for stronger US AI investment to outpace China

OpenAI has called for increased US investment and supportive regulations to ensure leadership in AI development and prevent China from gaining dominance in the sector. Its ‘Economic Blueprint’ outlines the need for strategic policies around AI resources, including chips, data, and energy.

The document highlights the risk of $175 billion in global funds shifting to China-backed projects if the US fails to attract those investments. OpenAI also proposed stricter export controls on AI models to prevent misuse by adversarial nations and protect national security.

CEO Sam Altman, who contributed $1 million to President-elect Donald Trump’s inaugural fund, seeks stronger ties with the incoming administration, which includes former PayPal executive David Sacks as AI and crypto czar. The company will host an event in Washington DC this month to promote its proposals.

Microsoft-backed OpenAI continues to seek further investment after raising $6.6 billion last year. The startup plans to transform into a for-profit entity to secure additional funding necessary for competing in the expensive AI race.

Synopsys gets EC approval for $35b Ansys acquisition

Synopsys has secured conditional approval from the European Commission for its $35 billion acquisition of simulation software company Ansys. The deal, aimed at merging Synopsys’ semiconductor design expertise with Ansys’ simulation capabilities, promises to enhance solutions for complex chip and system creation. However, the acquisition is still awaiting regulatory approval in the UK and the US.

To address competition concerns, both companies have agreed to divest key business units. Synopsys will sell its Optical Solutions Group to Keysight Technologies, while Ansys will part with its PowerArtist tool, both of which are critical for tech industries like augmented reality and autonomous vehicles. These divestitures are intended to preserve healthy competition in crucial technology markets.

The deal is expected to close by mid-2025, pending final approvals and the completion of the divestments.

US tightens AI chip export rules to maintain edge over China

The US government has announced new restrictions on exporting AI chips and technology, seeking to safeguard its dominance in AI development while limiting China’s access to advanced computing capabilities. The regulations, unveiled during the final days of President Biden’s administration, impose strict caps on AI chip exports to most countries, with exemptions for close allies such as Japan, the UK, and South Korea. Countries like China, Russia, Iran, and North Korea remain barred from accessing this critical technology.

Commerce Secretary Gina Raimondo emphasised the importance of maintaining US leadership in AI to support national security and economic interests. The regulations, which build on a four-year effort to block China’s acquisition of advanced chips, also close existing loopholes and enforce tighter controls. New limits target advanced graphics processing units (GPUs), essential for training AI models, and introduce worldwide licensing requirements for cutting-edge AI technologies. Major cloud providers like Microsoft and Amazon will face new authorisation processes to establish data centres globally under stringent conditions.

Industry leaders, including Nvidia, have expressed concerns over the broad scope of the rules, warning of potential harm to innovation and market dynamics. Nvidia called the restrictions an “overreach,” while Oracle cautioned that the measures could inadvertently benefit Chinese competitors. Despite this criticism, US officials argue the rules are vital for maintaining a competitive edge, given AI’s transformative potential in sectors like healthcare, cybersecurity, and defence. China’s Commerce Ministry condemned the move, vowing to protect its interests in response to the escalating technology standoff.

Indonesia plans social media age restrictions to protect children

Indonesia is preparing to introduce regulations setting a minimum age for social media users, aiming to shield children from potential online risks, according to Communications Minister Meutya Hafid. The announcement follows Australia’s recent ban on social media access for children under 16, which imposes penalties on platforms like Meta’s Facebook and Instagram, as well as TikTok, for non-compliance.

While the specific age limit for Indonesia remains undecided, Minister Hafid stated that President Prabowo Subianto supports the initiative, emphasising the importance of child protection in the digital space. The move highlights concerns about young users’ exposure to inappropriate content and data privacy risks.

Indonesia, with a population of approximately 280 million, has significant internet usage. A recent survey found internet penetration at 79.5%, with nearly half of children under 12 accessing the web, often using platforms like Facebook, Instagram, and TikTok. Among “Gen Z” users aged 12 to 27, internet penetration reached 87%. The proposed regulation reflects growing global efforts to prioritise child safety online.

UK launches probe into Google’s search practices

Britain’s antitrust regulator, the Competition and Markets Authority (CMA), has launched an investigation into Google’s search operations to assess their impact on consumers, businesses, and competition. With Google handling 90% of UK online searches and supporting over 200,000 businesses through advertising, the CMA aims to ensure fair competition and innovation in search services, said CMA chief Sarah Cardell.

The probe will evaluate whether Google’s dominant position restricts market entry and innovation, as well as whether it provides preferential treatment to its own services. The CMA will also investigate the company’s extensive collection and use of consumer data, including its role in AI services. The findings, expected within nine months, could lead to measures such as requiring Google to share data with rivals or giving publishers more control over their content.

Google has defended its role, stating that its search services foster innovation and help UK businesses grow. The company pledged to work constructively with the CMA to create rules that benefit both businesses and users. The investigation follows similar scrutiny in the US, where prosecutors have pushed for major reforms to curb Google’s dominance in online search.

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.