Google’s old search format criticised by hotels

Google has revealed that a trial of its traditional search result layout, featuring 10 blue links per page, negatively impacted both users and hotels. The test, conducted in Germany, Belgium, and Estonia, aimed to gauge the format’s viability under new EU digital regulations. The results showed users were less satisfied and took longer to find desired information, with hotel traffic dropping by over 10%.

The test was part of Google’s efforts to align with the EU’s Digital Markets Act, which prohibits favouritism towards its own services. However, the return to the older layout, implemented last month, left hotels at a disadvantage and reduced the ability of users to locate accommodations efficiently. “People had to conduct more searches and often gave up without finding what they needed,” stated Oliver Bethell, Google’s Competition Legal Director.

The trial results come as Google faces mounting pressure from price comparison websites and the European Commission. Over 20 comparison platforms have criticised Google’s compliance proposals, urging EU regulators to impose penalties. Google has indicated it will seek further guidance from the Commission to develop a suitable solution. This tension underscores the challenges tech giants face in balancing business interests with regulatory compliance and user experience, particularly in Europe’s increasingly stringent tech landscape.

Chipmaker Nvidia reaffirms commitment to China

Nvidia has refuted social media claims suggesting it plans to limit chip supplies to China, categorically stating that these rumours are false. In a post on a popular Chinese platform, the company reaffirmed its dedication to providing top-quality products and services to Chinese customers, highlighting the importance of the region to its business.

The denial comes at a time of heightened scrutiny over global semiconductor trade, with geopolitical tensions influencing market dynamics. Nvidia’s statement emphasises its continued focus on meeting the needs of its Chinese clientele, despite speculation circulating online.

This clarification is expected to reassure stakeholders in one of Nvidia’s most significant markets, where demand for advanced chips continues to grow, particularly in artificial intelligence and high-performance computing sectors. The company’s swift dismissal of the claims underscores its commitment to maintaining strong ties with China.

Media giant Warner Bros realigns operations

Warner Bros Discovery has announced a significant restructuring of its operations, separating its traditional cable TV businesses like CNN and TNT from its growing streaming platforms such as Max and Discovery+. This move is aimed at adapting to the ongoing decline in cable subscriptions while positioning itself for potential sales or industry mergers.

The company’s shares rose over 15% following the announcement, with analysts noting that the split could make its linear TV networks more attractive to buyers. The restructuring mirrors similar efforts by media giants like Comcast, which recently launched a spin-off for its cable assets. Despite this, Warner Bros Discovery’s $40 billion debt remains a challenge in attracting buyers for its cable unit.

Streaming and studio operations, now placed in a separate division, continue to show promise, with growing returns on investment. CEO David Zaslav, known for orchestrating major deals, hinted at further industry consolidation in the near future. Warner Bros Discovery’s new structure is widely seen as a proactive measure to navigate a shifting media landscape.

Bosch to receive $225 million for US semiconductor expansion

The US Commerce Department announced a preliminary deal to provide German auto supplier Bosch with up to $225 million in subsidies to produce silicon carbide (SiC) power semiconductors in California. The funding supports Bosch’s $1.9 billion transformation of its Roseville facility, with an additional $350 million in proposed government loans. This effort draws from the $52.7 billion fund established in 2022 to bolster US semiconductor production and research.

Bosch plans to begin manufacturing SiC chips, critical for electric vehicles, telecommunications, and defence, by 2026. These chips, known for their energy efficiency, play a vital role in improving electric vehicle performance and charging capabilities. The Commerce Department estimates the project could represent over 40% of US-based SiC manufacturing capacity once fully operational.

The investment aligns with Bosch’s strategy following its 2023 acquisition of TSI Semiconductors and highlights the growing importance of domestic chip production after pandemic-related supply chain disruptions. Representative Doris Matsui, who helped craft the semiconductor funding law, praised the move as a step toward advancing clean energy technologies and electric vehicle development in the US.

AI driving solutions backed by Hyundai and Samsung

Canadian startup Tenstorrent and South Korea’s BOS Semiconductors unveiled advanced AI chips designed for infotainment and autonomous driving systems. Growing demand for high-performance chips aligns with vehicles increasingly functioning as ‘computers on wheels’.

The AI chips are the first in the industry to feature ‘automotive chiplet AI accelerator’ technology, enabling modular customisation. Chiplets function like LEGO blocks, allowing manufacturers to tailor systems while cutting costs. BOS plans to debut its ‘Eagle-N’ chips at the Consumer Electronics Show in January, with production targeted for late 2026.

BOS Semiconductors is negotiating supply agreements with German automakers and aims to challenge established players like Qualcomm. The chips will utilise Samsung’s 5nm manufacturing process, showcasing advancements in efficiency and performance.

Tenstorrent, led by former Apple and Tesla chip designer Jim Keller, has secured backing from Hyundai Motor Group, Samsung, and Jeff Bezos’ family office. BOS founder Park Jae-hong, formerly of Samsung Electronics, emphasised the potential of this innovative technology to transform the automotive industry.

Keppel and Sovico plan undersea cables to link Vietnam and Singapore, sources say

Singaporean asset manager Keppel and Vietnam’s Sovico Group are in discussions to develop undersea fibre-optic cables aimed at boosting Southeast Asia’s data centre industry. The potential $150 million project would directly link Vietnam with Singapore, a critical regional hub for data infrastructure. However, talks remain fluid, with Keppel reportedly favouring a larger consortium-led project extending from Singapore to Japan, while Sovico supports a direct connection.

The discussions highlight Southeast Asia’s growing demand for AI services and internet capacity, with Vietnam planning 10 new submarine cables by 2030. These cables are also a focal point in the ongoing US-China tech rivalry, with the United States lobbying against the involvement of Chinese contractors, citing security concerns. US officials have reportedly briefed Sovico and other stakeholders on the risks of working with China’s HMN Technologies.

Vietnam, with a rapidly growing digital economy and a population nearing 100 million, currently relies on five undersea cable branches for global connectivity. Expanding its cable infrastructure is seen as key to establishing itself as a regional data hub, despite challenges like power shortages and stringent data regulations. Keppel and Sovico’s efforts, along with other planned projects, signal significant investment in the region’s digital future.

Meta introduces tools to enhance the Metaverse

Meta has announced the release of a new AI model, Meta Motivo, designed to enhance the realism of human-like digital agents in the Metaverse. This innovation promises more lifelike movements for avatars, addressing longstanding issues with digital body control. The company believes these advancements will revolutionise character animation and create immersive experiences with highly interactive non-playable characters (NPCs).

Meta’s focus on AI and Metaverse technologies has led to record-breaking investment forecasts for 2024, with capital expenditures projected to reach up to $40 billion. The company has also embraced an open-source approach by making its AI models available for free to developers, fostering innovation across its platforms.

In addition to Meta Motivo, the company introduced the Large Concept Model (LCM), an AI system designed to reimagine language modelling by focusing on high-level concepts rather than predicting text tokens. This system processes entire sentences in multilingual and multimodal contexts, aiming to enhance reasoning capabilities. Meta also unveiled Video Seal, a tool that embeds invisible, traceable watermarks into videos, signalling its commitment to both innovation and security in digital content creation.

These releases reflect Meta’s vision of advancing AI to shape the future of digital interaction and the Metaverse, aiming to establish itself as a leader in cutting-edge virtual and augmented reality technologies.

Russia aims for AI leadership by 2030

Russia has the potential to improve its global AI standing by 2030, bolstered by local talent and the development of its own generative AI models, according to Alexander Vedyakhin, the first deputy CEO of Sberbank. Speaking at the bank’s AI Journey conference, Vedyakhin highlighted the resilience of Russian developers in navigating Western sanctions, which aimed to limit the country’s computing resources. He emphasised the importance of fostering experimentation to maintain progress in AI.

Although Russia currently trails the US and China in AI innovation by six to nine months, Vedyakhin is optimistic about closing the gap. Instead of building massive data centres, Russia is focusing on smart AI models tailored to its market, similar to Meta’s Llama. These efforts, he said, will ensure technological sovereignty, especially as generative AI gains global importance. For example, Russian language models address local cultural contexts better than English-trained systems, avoiding misunderstandings like misinterpreting cultural dishes.

President Vladimir Putin also underscored the strategic significance of AI, announcing plans to collaborate with BRICS countries to challenge US dominance. Vedyakhin added that while Europe and China face setbacks due to overregulation, Russia’s supportive regulatory environment could be a competitive advantage. Encouraging investment in AI startups and allowing for innovation without severe penalties for mistakes are key to advancing the sector.

Despite a broader decline in venture capital investment in Russia, funding for AI startups continues to grow, hinting at a more diversified market. Vedyakhin also suggested that decentralised autonomous organizations (DAOs), powered by blockchain, could address labour shortages, paving the way for Russia to strengthen its AI ecosystem in the years ahead.

Nvidia expands in China amid challenges

Nvidia has added around 200 employees in China this year, boosting its research capabilities and focusing on autonomous driving technologies, Bloomberg News reports. The company now employs nearly 600 people in Beijing, with a recently opened office in the Zhongguancun tech hub, according to sources familiar with the matter.

Despite its expansion, Nvidia faces headwinds in China, including an ongoing investigation into alleged violations of the country’s anti-monopoly laws. This probe is widely interpreted as a response to US restrictions on China’s chip sector. Nvidia declined to comment on the situation.

China contributed about 17% of Nvidia’s revenue in the year ending January, down from 26% two years earlier. Globally, Nvidia employs around 29,600 people across 36 countries, as detailed in its February 2024 filing.

Apple partners with Broadcom for AI innovation

Apple is teaming up with Broadcom to develop its first server chip dedicated to artificial intelligence processing. Expected to enter mass production by 2026, the chip, code-named Baltra, represents Apple’s latest venture into custom hardware aimed at reducing reliance on Nvidia’s high-cost and supply-constrained processors.

The chip will use Taiwan Semiconductor Manufacturing Co.’s N3P process, highlighting Apple’s commitment to furthering manufacturing technology. Broadcom, already benefiting from AI-driven growth, saw its shares climb 5% following the announcement.

This partnership builds on Apple’s recent successes in chip growth, including its M-series processors for Mac devices. It also echoes a broader trend among tech giants like Google, which have pursued custom AI chips to enhance their services. With the global market for custom chips projected to reach $45 billion by 2028, Apple’s move furthers its role as a leader in the AI tech industry.