Apple is closing in on a historic $4 trillion market valuation, driven by investor enthusiasm over its advancements in artificial intelligence and hopes for a surge in iPhone upgrades. Shares have surged 16% since November, adding $500 billion to its market cap, and positioning Apple ahead of rivals Nvidia and Microsoft in the race to this milestone. Analysts attribute the rally to expectations of a new “supercycle” in iPhone sales fueled by AI enhancements, despite modest revenue growth projections for the holiday season.
Apple’s integration of AI tools like OpenAI’s ChatGPT across its devices and apps marks a strategic pivot in a market long dominated by Microsoft, Alphabet, and Meta. Although iPhone demand remains muted, analysts forecast a rebound in 2025, as AI-powered features and broader availability drive renewed interest. Meanwhile, Apple’s premium valuation—its price-to-earnings ratio recently hit a three-year high of 33.5—has sparked mixed reactions among investors, with Warren Buffett’s Berkshire Hathaway scaling back its holdings.
Despite challenges such as geopolitical risks and fluctuating market conditions, Apple’s approach to this milestone underscores its enduring dominance in the tech sector. Analysts and investors remain optimistic about the company’s ability to navigate near-term hurdles and leverage AI innovation to maintain its leadership in a competitive landscape.
The Biden administration has initiated a trade investigation targeting Chinese-made legacy semiconductors, which power everyday goods like cars and telecom equipment. This ‘Section 301’ probe aims to address concerns about China’s state-driven expansion in chip manufacturing, which US officials warn could harm American semiconductor producers. Departing President Joe Biden had already imposed a 50% tariff on Chinese semiconductors, set to take effect 1 January, while tightening export controls on advanced AI and memory chips.
Commerce Secretary Gina Raimondo revealed that Chinese legacy chips account for two-thirds of semiconductors in US products, with many companies unaware of their origin—a finding she called alarming, particularly for the defence industry. US Trade Representative Katherine Tai stated that China’s subsidised chip pricing threatens global competition, enabling rapid capacity growth and undercutting market-oriented producers.
China’s commerce ministry has criticised the probe, calling it protectionist and a potential disruptor to global supply chains. Meanwhile, a public hearing on the issue is scheduled for March, with the probe expected to conclude within a year. The investigation follows the COVID-19 pandemic’s impact on semiconductor supply chains, prompting the US efforts to bolster domestic chip production with $52.7 billion in subsidies.
As the Biden administration transitions to President-elect Donald Trump’s leadership in January, this probe may offer Trump an opportunity to escalate tariffs on Chinese imports, echoing the trade practices he implemented during his prior term. Critics, including the US tech industry, have urged officials to approach the investigation collaboratively to avoid further disruption.
Microsoft is taking steps to diversify the AI powering its flagship product, Microsoft 365 Copilot. While OpenAI’s GPT-4 model has been a cornerstone of the AI assistant since its launch in March 2023, Microsoft is now integrating internal and third-party AI models, including its proprietary Phi-4, to reduce costs and improve efficiency. This move reflects Microsoft’s broader strategy to lessen reliance on OpenAI, its long-time partner, as it looks to offer faster, more cost-effective solutions to enterprise customers.
The shift is driven by concerns over the high costs and slower speeds associated with OpenAI’s technology for enterprise users. A company spokesperson confirmed that OpenAI remains a partner for advanced models but emphasised that Microsoft customises and incorporates a range of AI models depending on the product. Beyond its collaboration with OpenAI, Microsoft is also customising open-weight models to make its services more accessible and affordable, with potential cost savings for customers.
Microsoft’s approach mirrors similar changes in its other business units. For example, GitHub, acquired by Microsoft in 2018, has started incorporating AI models from Anthropic and Google as alternatives to OpenAI’s offerings. These efforts align with Microsoft’s goal of demonstrating the return on investment for its AI tools, particularly as some enterprises remain cautious about adopting 365 Copilot due to concerns over pricing and utility.
Despite these challenges, Microsoft reports growing adoption of 365 Copilot. The company states that 70% of Fortune 500 companies are using the AI assistant, and analysts predict that more than 10 million users will adopt it this year. As Microsoft continues refining its AI technology, leaders like CEO Satya Nadella are keeping a close watch, underscoring the company’s commitment to innovation in enterprise AI.
Elon Musk’s AI venture, xAI, has unveiled a standalone iOS app for its chatbot, Grok, marking its first major expansion beyond the X platform. The app, currently in beta testing across Australia and a few other regions, offers users an array of generative AI features, including real-time web access, text rewriting, summarisation, and even image generation from text prompts.
Grok, described as a ‘maximally truthful and curious’ assistant, is designed to provide accurate answers, create photorealistic images, and analyse uploaded pictures. While previously restricted to paying X subscribers, a free version of the chatbot was launched in November and has recently been made accessible to all users.
The app also serves as a precursor to a dedicated web platform, Grok.com, which is in the works. xAI has touted the chatbot’s ability to produce detailed and unrestricted image content, even allowing creations involving public figures and copyrighted material. This open approach sets Grok apart from other AI tools with stricter content policies.
As the beta rollout progresses, Grok is poised to become a versatile tool for users seeking generative AI capabilities in a dynamic and user-friendly interface.
As President-elect Donald Trump prepares to take office, the cryptocurrency industry is urging him to swiftly implement his promised overhaul of crypto policies through executive orders. Industry officials are pushing for measures such as creating a bitcoin stockpile, ensuring crypto firms have access to banking services, and establishing a crypto advisory council. They hope these actions will come within the first 100 days of Trump’s presidency, with some anticipating an order on his first day in office, January 20.
During his campaign, Trump positioned himself as a “crypto president” and promised to support the industry’s growth. In contrast to the regulatory crackdowns under President Joe Biden, which focused on concerns about crime and volatility in the sector, Trump’s team is aiming to reverse course, encouraging innovation and positioning the US as a global leader in cryptocurrency. His crypto policy team, including crypto-friendly figures like Securities and Exchange Commission chair Paul Atkins and White House crypto czar David Sacks, is already taking shape.
One of the most discussed proposals is the creation of a strategic Bitcoin reserve, a plan Trump first mentioned in July. Some in the industry, like the Bitcoin Policy Institute, have even drafted potential executive orders for this purpose, suggesting the Treasury Secretary could spend $21 billion over a year to amass the reserve. However, analysts are divided on whether this can be achieved via executive orders or will require congressional action.
Trump is also expected to address the ongoing challenges that crypto firms face in accessing banking services, as many institutions avoid working with them due to regulatory concerns. While an executive order could signal a shift in policy, some executives caution that it may not have the legal force to immediately change regulations, as federal banking authorities are independent.
Google has proposed changes to its agreements with companies like Apple to address a US antitrust ruling against its dominance in online search. The tech giant suggested making its distribution deals non-exclusive and allowing annual reviews for developers who set Google as the default search engine.
The company urged caution against drastic measures such as selling its Chrome browser or unbundling Android features, arguing that such remedies could stifle innovation in a rapidly evolving AI landscape. Judge Amit Mehta previously found Google’s agreements gave it an unfair advantage, particularly through deals requiring Android manufacturers to pre-install Google search to access its Play Store.
Revenue-sharing deals, which are vital to smaller developers like Mozilla, would remain under Google’s plan. Critics, including DuckDuckGo, argue the proposal fails to restore competition and largely maintains the status quo. Apple reportedly earned $20 billion from its agreement with Google in 2022, underlining the financial stakes of these deals.
An April trial will determine if broader remedies are necessary to boost innovation and competition in search and artificial intelligence. The US Department of Justice, along with several states, is seeking measures to curb Google’s dominance, including restrictions on its payments for default search placement and licensing of its search technology to rivals.
OpenAI has announced internal testing of its latest reasoning models, o3 and o3 mini, which aim to tackle complex problems more effectively than their predecessors. The o3 mini model is expected to launch by January, with the full o3 model to follow. These developments signal increased competition with rivals like Google, which recently released its second-generation Gemini AI model.
OpenAI’s advancements build on its earlier o1 models, released in September, which demonstrated improved reasoning in science, coding, and mathematics. The company is inviting external researchers to test the new o3 models before public release.
The announcement follows OpenAI’s $6.6 billion funding round in October, highlighting its growing influence in the generative AI market. As competition intensifies, both OpenAI and Google aim to push the boundaries of AI technology.
China has enacted new regulations asserting state ownership over rare earth materials, critical for semiconductor production, with a rule effective from October 1. Additionally, on December 3, the Ministry of Commerce announced a ban on the export of dual-use items such as gallium, germanium, and antimony to the US. These moves are expected to impact industries reliant on these materials, especially solar cell production and semiconductor manufacturing.
As the world’s largest supplier of rare earths, China has long dominated the market due to its lax environmental regulations, which allow for large-scale extraction and refining. However, with many countries looking to reduce their dependency on China, the long-term effectiveness of these export restrictions may diminish. Nations like the US and Australia are expanding their rare earth production lines, and efforts to recycle rare earth materials are also gaining traction.
Despite these efforts, challenges remain in replicating China’s refining capabilities, as many countries are limited by technical and environmental obstacles. Notably, the US has partnered with Australia’s Lynas Corporation to build a rare earth extraction facility, aiming to strengthen its supply chain.
The future of the rare earth market may shift toward the development of substitute materials, although creating viable replacements is a time-consuming process. In this ongoing battle, China has already secured patents for some high-performance materials that could serve as alternatives, indicating that the competition could soon turn to technological innovation and patent rights.
Apple is reportedly working on an innovative smart doorbell camera equipped with Face ID technology, enabling users to unlock their doors simply by looking at it. This new device could launch as early as 2025, according to Bloomberg’s Mark Gurman. The camera will feature Apple’s Secure Enclave chip, ensuring biometric data is processed and stored securely, similar to other Apple products like the iPhone.
The doorbell camera is expected to integrate with existing HomeKit-compatible smart locks and might also come as part of a complete system developed in partnership with a smart lock manufacturer. It will likely incorporate Apple’s ‘Proxima’ Wi-Fi and Bluetooth chip, which is also rumoured for upcoming HomePod Mini and Apple TV models.
This development is part of Apple’s broader push into the smart home market. Additional rumours point to a new Apple-branded security camera, smart displays with advanced features like robotic arms, and even a potential Apple TV update. These efforts signal Apple’s commitment to creating a seamless and intelligent home ecosystem.
Tetsuwan Scientific, a startup founded by Cristian Ponce and Théo Schäfer, is developing robotic AI scientists designed to automate lab experiments. Inspired by the rapid evolution of AI models like GPT-4, these robots aim to address the repetitive and labour-intensive aspects of research. They combine low-cost robotic hardware with advanced software that interprets and executes scientific tasks autonomously.
The breakthrough came when Ponce tested AI’s ability to diagnose scientific data and offer solutions. However, existing lab robots lacked the ability to physically act on these insights. Tetsuwan’s solution integrates AI to give robots the context and flexibility to perform tasks like pipetting and analysing results without constant programming.
Currently working with La Jolla Labs in RNA therapeutic drug development, Tetsuwan has secured $2.7 million in funding to advance its technology. The ultimate goal is to create self-reliant AI scientists capable of automating the entire scientific process, from hypothesis to reproducible results, potentially accelerating innovation at an unprecedented pace.
