Avataar, a startup backed by Peak XV and Tiger Global, has launched Velocity, an AI-powered tool that generates product videos directly from a product link. The company aims to help brands create engaging promotional content at scale, competing with tech giants like Amazon and Google, who are also exploring AI-driven video solutions. By automating video production, Avataar hopes to lower costs and improve conversion rates for e-commerce businesses.
Founded in 2015, Avataar initially focused on AI-powered imagery and 3D modelling before shifting towards AI video creation. Its Velocity tool, commercially tested since September 2024, is already being used by brands such as HP, Victoria’s Secret, and Newegg. The company also offers an API, allowing businesses to integrate video generation into their platforms.
Avataar’s models are designed to ensure high-quality product representation, addressing past concerns about AI-generated content accuracy. Investor Amir Konigsberg highlighted the challenge of making AI-generated videos unique and maintaining quality at scale. With advancements in AI models, Avataar believes automated video production is now viable for mass adoption in e-commerce.
Russian President Vladimir Putin has directed the government and Sberbank, the nation’s largest bank, to deepen collaboration with China in the development of AI. The announcement, published on the Kremlin’s website, comes three weeks after Putin unveiled plans for Russia to work alongside BRICS nations and other partners to advance AI technologies. Sberbank, which leads Russia’s AI initiatives, has been tasked with fostering technological cooperation with China.
That move reflects Russia’s efforts to circumvent Western sanctions that have restricted its access to key technologies, including microchips essential for AI development. The sanctions have caused major global chip manufacturers to halt exports to Russia, creating significant hurdles for its AI ambitions.
Sberbank CEO German Gref admitted that replacing GPUs, the microchips vital to AI, remains a critical challenge for the country. By partnering with non-Western allies, Russia aims to counterbalance US dominance in the rapidly evolving AI sector, which Putin has described as a cornerstone of the 21st century.
As part of this strategy, a newly proposed AI Alliance Network will unite experts from BRICS nations and other interested states to bolster innovation and investment. However, Russia still lags behind its competitors, ranking 31st in the Global AI Index, far below leaders like the US, China, and even BRICS partners India and Brazil.
Apple has announced rare discounts on its latest iPhone models in China, offering up to 500 yuan ($68.50) off in a bid to counter growing competition from domestic rivals like Huawei. The promotion, running from 4 January to 7, applies to several iPhone models when purchased through specific payment methods, such as WeChat Pay or Alipay.
The flagship iPhone 16 Pro and iPhone 16 Pro Max, priced at 7,999 yuan and 9,999 yuan, respectively, will receive a maximum discount of 500 yuan. Meanwhile, the iPhone 16 and iPhone 16 Plus will see a 400 yuan reduction. The offer extends to older iPhone models and other products, including MacBook laptops and iPad tablets, with discounts ranging from 200 to 300 yuan.
That move comes as Apple faces a challenging environment in China, where economic pressures and intensifying competition have weighed on consumer spending. Huawei has reemerged as a formidable competitor, significantly boosting its market presence with locally-made chipsets and aggressive pricing.
While Apple briefly dropped out of China’s top five smartphone vendors in mid-2024, it regained some ground later in the year despite a slight dip in sales. By offering these discounts, Apple aims to retain its footing in the world’s largest smartphone market amid Huawei’s resurgence and a cautious economic climate.
The Chinese technology powerhouse, Alibaba, has announced substantial price cuts of up to 85% for its large language models (LLMs), including the visual language model Qwen-VL. Designed to process and interpret both text and images, Qwen-VL is tailored for enterprise use, marking a departure from consumer-facing AI tools like ChatGPT. These discounts signal a competitive push to expand AI accessibility in the enterprise sector.
The move comes amid a broader race among Chinese tech giants to dominate the AI landscape. Companies like Tencent, Baidu, Huawei, and ByteDance have launched their own LLMs, aiming to capitalise on the growing demand for advanced AI solutions. Alibaba’s decision to focus on enterprise customers has already shown results, with its Qwen models adopted by over 90,000 businesses since May.
Analysts predict these price cuts could reshape global AI accessibility, enabling smaller firms and startups to leverage cutting-edge technology. Lower costs may allow traditional industries to modernise operations, while venture capital flows into supporting technologies are expected to further fuel innovation.
The global AI race is poised to accelerate into 2025, with Chinese companies playing a central role in advancing machine reasoning and practical applications. The intensifying competition could define the future of AI development, offering more use cases across diverse industries worldwide.
Bitcoin surged past $100,000 in 2024, more than doubling its value, driven by pivotal regulatory and political developments. The US Securities and Exchange Commission’s approval of exchange-traded funds tied to Bitcoin’s spot price marked a significant milestone, attracting mainstream and institutional interest in the cryptocurrency sector.
A broader crypto rally saw Bitcoin gain over 120% and Ethereum rise nearly 50%, boosting the market’s total value to $3.5 trillion. Analysts predict Bitcoin could reach $200,000 by late 2025, solidifying its status as a premier store of value. Enthusiasm for the asset class has extended to corporate treasuries, with firms like MicroStrategy leading the charge.
MicroStrategy’s shares quintupled in 2024, reflecting its substantial Bitcoin holdings. Other companies, including major financial players, are incorporating Bitcoin into their portfolios. Meanwhile, Donald Trump’s victory in the US presidential election, coupled with his pro-crypto stance, further energised the market.
Despite the rally, challenges persist for smaller crypto miners. Rising energy and hardware costs have limited gains for firms like Riot Platforms and Marathon Digital, which struggled against the year’s bullish trends.
The owner of TikTok, ByteDance, plans a significant $7 billion investment in AI hardware by 2025. The company is turning to Nvidia chips despite US-imposed restrictions on AI chip exports to China. ByteDance has devised methods to bypass these curbs by storing chips in data centres outside China, particularly in Southeast Asia, without breaching restrictions.
The United States introduced export restrictions in 2022, citing security concerns about Chinese companies accessing advanced AI hardware. ByteDance has denied any ties to the Chinese government, countering allegations raised by US lawmakers. Meanwhile, the restrictions have drawn warnings from Chinese industry bodies about over-reliance on US technology, a scenario that could also affect companies like Nvidia and AMD.
US President-elect Donald Trump is advocating for a delay in the January 19 TikTok ban deadline. He hopes for more time to pursue a political solution that avoids disruption to TikTok’s 170 million US users. Legal challenges filed by ByteDance against the ban, which it argues infringes free speech, have so far failed to yield results.
The Supreme Court is set to hear arguments on the matter on January 10, marking a final chance for ByteDance, TikTok, and US authorities to present their cases. Trump recently met TikTok CEO Shou Zi Chew, describing the platform as holding a ‘warm spot’ in his heart. However, over 20 state attorneys general and the Justice Department have labelled the app a national security risk, urging the court to uphold the ban.
In Barcelona, a pink-haired 25-year-old named Aitana captivates social media with her stunning images and relatable personality. But Aitana isn’t a real person—she’s an AI model created by The Clueless Agency. Launched during a challenging period for the agency, Aitana was designed as a solution to the unpredictability of working with human influencers. The virtual model has proven successful, earning up to €10,000 monthly by featuring in advertisements and modelling campaigns.
Aitana has already amassed over 343,000 Instagram followers, with some celebrities unknowingly messaging her for dates. Her creators, Rubén Cruz and Diana Núñez, maintain her appeal by crafting a detailed “life,” including fictional trips and hobbies, to connect with her audience. Unlike traditional models, Aitana has a defined personality, presented as a fitness enthusiast with a determined yet caring demeanour. This strategic design, rooted in current trends, has made her a relatable and marketable figure.
The success of Aitana has sparked a new wave of AI influencers. The Clueless Agency has developed additional virtual models, including a more introverted character named Maia. Brands increasingly seek these customisable AI creations for their campaigns, citing cost efficiency and the elimination of human unpredictability. However, critics warn that the hypersexualised and digitally perfected imagery promoted by such models may negatively influence societal beauty standards and young audiences.
Despite these concerns, Aitana represents a broader shift in advertising and social media. By democratising access to influencer marketing, AI models like her offer new opportunities for smaller businesses while challenging traditional notions of authenticity and influence in the digital age.
OpenAI has unveiled plans to transition its for-profit arm into a Delaware-based public benefit corporation (PBC). The move aims to attract substantial investment as the competition to develop advanced AI intensifies, and the proposed structure intends to prioritise societal interests alongside shareholder value, setting the company apart from traditional corporate models.
The shift marks a significant step for OpenAI, which started as a nonprofit in 2015 before establishing a for-profit division to fund high-cost AI development. Its latest funding round, valued at $157 billion, necessitated the structural change to eliminate a profit cap for investors, enabling greater financial backing. The nonprofit will retain a substantial stake in the restructured company, ensuring alignment with its original mission.
OpenAI faces criticism and legal challenges over the move. Elon Musk, a co-founder and vocal critic, has filed a lawsuit claiming the changes prioritise profit over public interest. Meta Platforms has also urged regulatory intervention. Legal experts suggest the PBC status offers limited enforcement of its mission-focused commitments, relying on shareholder influence to maintain the balance between profit and purpose.
By adopting this structure, OpenAI aims to align with competitors like Anthropic and xAI, which have similarly raised billions in funding. Analysts view the move as essential for securing the resources needed to remain a leader in the AI sector, though significant hurdles remain.
Smart home cameras have become a staple for security-conscious households, offering peace of mind by monitoring both indoor and outdoor spaces. However, new research by Surfshark exposes alarming privacy concerns, showing that these devices collect far more user data than necessary. Outdoor security camera apps top the list, gathering an average of 12 data points, including sensitive information such as precise location, email addresses, and payment details which is 50% more than other smart devices.
Indoor camera apps are slightly less invasive but still problematic, collecting an average of nine data points, including audio data and purchase histories. Some apps, like those from Arlo, Deep Sentinel, and D-Link, even extract contact information unnecessarily, raising serious questions about user consent and safety. The absence of robust privacy regulations leaves users vulnerable to data breaches, cyberattacks, and misuse of personal information.
Experts recommend limiting data-sharing permissions, using strong passwords, and regularly updating privacy settings to mitigate risks. Options such as enabling local storage instead of cloud services and employing a VPN can further protect against data leaks. While smart cameras bring convenience, they highlight the urgent need for clearer regulations to safeguard consumer privacy in the era of connected technology.
Apple has introduced an ‘Enhanced Visual Search’ feature in iOS 18, allowing users to identify landmarks in photos by matching data with a global database. While convenient, the feature has sparked privacy concerns, as it is enabled by default, requiring users to manually turn it off in settings if they prefer not to share photo data with Apple.
The feature uses on-device machine learning to detect landmarks in photos, creating encrypted ‘vector embeddings’ of image data. These are then sent to Apple for comparison with its database. While the company has reportedly implemented privacy safeguards, such as encrypting and condensing data into machine-readable formats, critics argue the feature should have been opt-in rather than opt-out, aligning with Apple’s usual privacy standards.
This toggle builds on Apple’s earlier ‘Visual Look Up’ tool, which identifies objects like plants or symbols without sending data to Apple’s servers. Privacy advocates suggest that Apple could have maintained this approach for Enhanced Visual Search, questioning why it requires shared data for similar functionality.
The debate highlights ongoing tensions between technological convenience and user privacy, raising questions about how far companies should go in enabling features that require data sharing without explicit consent.
