The US Federal Trade Commission (FTC) has launched a wide-reaching antitrust investigation into Microsoft’s business practices, focusing on cloud computing, software licensing, and artificial intelligence. Allegations suggest the company has imposed restrictive licensing terms that make it difficult for customers to switch from its Azure cloud services to rival platforms. FTC Chair Lina Khan approved the probe ahead of her expected departure in January, raising questions about its future under a potentially business-friendlier administration.
Critics, including competitors and industry groups like NetChoice, claim Microsoft’s licensing policies unfairly lock customers into its ecosystem. Google has raised similar concerns with European regulators, citing significant mark-ups for using Windows Server on competing cloud services and delays in providing security updates. The FTC’s investigation also touches on broader competition concerns in AI and cybersecurity, including Microsoft’s acquisition of AI startup Inflection AI.
Microsoft has not commented on the probe, but complaints have mounted over its practices in cloud computing and the integration of AI tools into productivity products like Office and Outlook. Some industry observers note that Microsoft has been relatively spared in recent US antitrust actions targeting Big Tech firms, including Apple, Google, Meta, and Amazon. However, the FTC’s focus on Microsoft could signal a shift in regulatory priorities.
The outcome of the investigation remains uncertain, particularly with a potential change in the political landscape. While the Trump administration previously pursued aggressive antitrust enforcement, including actions against Google and Meta, Microsoft has benefited from its policies in the past, such as winning a contentious $10 billion Pentagon cloud contract over Amazon. Experts believe a new administration may alter enforcement priorities but not necessarily halt ongoing probes.
Amazon has reportedly developed a new generative AI model, code-named Olympus, capable of processing images and videos alongside text. This innovation is expected to reduce Amazon’s reliance on Anthropic’s Claude chatbot, currently a prominent feature of Amazon Web Services (AWS), according to sources cited by The Information.
The Olympus model promises enhanced functionality, such as recognising scenes in visual content. For example, users could search for specific moments, like a game-winning basketball shot, using simple text prompts. This advancement aligns with Amazon’s strategy to solidify its position in the competitive generative AI landscape, currently dominated by Google, Microsoft, and OpenAI.
Amazon’s efforts come after its recent $4 billion investment in Anthropic, echoing a similar amount injected last year. These investments bolster Amazon’s generative AI capabilities, signalling its commitment to catching up with its tech rivals. An official announcement for Olympus may be made at the upcoming AWS re:Invent conference next week, according to insiders.
Amazon declined to comment on the matter when approached by Reuters. The e-commerce giant’s push for cutting-edge AI underscores its ambition to rival industry leaders and redefine user experiences through advanced AI tools.
Google is appealing a court order mandating significant changes to its Play app store, arguing to the US 9th Circuit Court of Appeals that legal errors during the trial unfairly favoured Epic Games. The tech giant contends that the San Francisco jury should not have been allowed to rule on Epic’s claims and that the trial judge overstepped by issuing a nationwide injunction.
Epic, known for creating “Fortnite,” accused Google of monopolising app distribution and payment systems on Android devices. A jury sided with Epic last year, leading US District Judge James Donato to require Google to permit rival app stores on Android and allow competitors access to Play’s app catalogue. This injunction, set to last three years, is on hold pending the appeal.
Google warns the mandated changes would disrupt app developers and users, framing the judge’s order as excessive intervention. Epic, meanwhile, dismissed Google’s appeal as baseless and a refusal to honour the jury’s unanimous decision. The appeals court is set to hear arguments in February, with a decision expected later in 2025.
Intel has secured a $7.86 billion subsidy from the US Commerce Department to bolster its domestic semiconductor production. The revised figure is lower than the $8.5 billion initially announced in March, following Intel’s receipt of a $3 billion Pentagon award. The funding will support key projects in Arizona, New Mexico, Ohio, and Oregon, advancing the nation’s chip-making capabilities.
Commerce Secretary Gina Raimondo highlighted the deal as a step towards revitalising US manufacturing. She emphasised the importance of having American-designed chips produced domestically, benefiting national security and economic growth. Intel will receive at least $1 billion of the subsidy by the year’s end, having met key project milestones.
The grant is part of a broader $52.7 billion initiative under the 2022 CHIPS Act, aimed at strengthening the US semiconductor industry. While Intel declined an $11 billion low-cost loan offered earlier, the company plans to leverage a 25% Treasury Investment Tax Credit for investments exceeding $100 billion. Intel CEO Pat Gelsinger noted bipartisan support for the sector’s growth, calling it vital for America’s future.
The award comes with strict conditions, including a five-year prohibition on stock buybacks and requirements to share excess profits. Raimondo reassured that these safeguards are designed to protect taxpayers, with additional awards expected in the coming weeks.
Chinese robotaxi firm Pony AI secured $260 million in a US IPO, valuing the startup at $4.55 billion. This marks a resurgence in US investor confidence for Chinese tech companies, with the IPO reflecting renewed interest in autonomous driving technologies despite ongoing geopolitical tensions.
The company’s move follows a period of uncertainty for Chinese firms in US markets, notably after Didi Global’s delisting. Regulatory disputes between China and the US have eased, bolstering opportunities for companies like Pony AI. However, the robotaxi sector faces challenges, including public concerns about autonomous vehicles’ safety, data privacy, and stiff competition from rivals such as Tesla, which plans to launch similar services in the US next year.
Pony AI sold 20 million American depositary shares at $13 each and raised an additional $153.4 million through private placements. Backed by Toyota, the company’s valuation has declined from $8.5 billion two years ago, highlighting the competitive and uncertain nature of the market. Analysts note widespread robotaxi adoption may take years due to safety and reliability hurdles.
The IPO follows a trend of other Chinese firms, including Zeekr and WeRide, also going public in the US. While Pony AI’s operations in the US remain limited, its public listing underscores growing investor interest in technology startups despite profitability challenges and intense market competition.
Morocco is preparing to regulate cryptocurrencies with a draft law currently in the process of adoption, according to central bank governor Abdellatif Jouahri. Despite a ban on cryptocurrencies since 2017, underground usage has persisted among the public, prompting Bank Al Maghrib to take steps toward formal oversight.
At an international conference in Rabat, Jouahri highlighted the bank’s dual focus on regulating crypto assets and exploring a central bank digital currency (CBDC). Unlike decentralised cryptocurrencies, a CBDC would be centrally managed, potentially supporting public policy goals such as financial inclusion.
This move reflects a global trend as countries assess how digital currencies can align with regulatory frameworks while fostering innovation. The initiative aims to address the risks of unregulated crypto use while leveraging its potential benefits for Morocco’s financial system.
Inflection AI, once known for developing top-tier AI models to rival industry leaders, has shifted its focus to practical solutions for businesses. The move follows a significant change in direction after Microsoft acquired much of Inflection’s talent and technology for $650M, including former CEO Mustafa Suleyman. Now led by Sean White, the company is emphasising enterprise tools rather than chasing advancements in AI model architecture.
In the past two months, Inflection has acquired three startups: Jelled.AI for email management, BoostKPI for analytics, and Boundaryless for automation consulting in Europe. These acquisitions aim to strengthen Inflection’s suite of AI-driven tools, catering to the needs of global enterprise customers. White believes current AI technologies are sufficient for most business applications and prefers practical solutions over developing complex next-generation systems.
Inflection also promotes its ability to run AI systems on-premise, offering businesses a more secure alternative to cloud-based solutions from competitors. While it faces stiff competition from companies like Salesforce, Meta, and startups such as Anthropic, Inflection sees its new approach as better aligned with enterprise demands. The company’s pivot highlights the evolving priorities in the competitive AI landscape.
Uber is expanding its gig worker ecosystem with a new initiative aimed at data labeling and AI annotation. The new division, called Scaled Solutions, provides services not only for Uber’s internal needs but also for outside clients like self-driving car company Aurora Innovation and game developer Niantic. This move highlights Uber’s effort to diversify beyond its core ride-hailing and delivery businesses.
The company has started recruiting contractors across multiple countries, including the US, Canada, and India. Scaled Solutions aims to tap into the booming demand for data annotation services, a critical component for training AI models. The initiative positions Uber in a growing market dominated by companies like Scale AI, which recently secured a $1B funding round at a $13.8B valuation.
Uber’s entry into data labeling reflects its push to stay competitive in the rapidly evolving AI world. By leveraging its gig workforce model, the company could establish a foothold in this high-demand sector while diversifying its revenue streams.
Margrethe Vestager, the European Union’s outgoing competition chief, is stepping down after a decade of high-profile confrontations with tech giants like Apple and Google. In an exit interview, she expressed regret over not being more aggressive in regulating Big Tech, acknowledging the continued dominance of major platforms despite billions in fines. She described her tenure as ‘partly successful,’ noting the slow pace of change in the tech landscape.
Vestager was instrumental in shaping the EU’s regulatory framework, pushing for initiatives like the Digital Markets Act (DMA) to curb monopolistic behaviour. However, she conceded that the full impact of these measures may take years to be felt. She emphasised the importance of stronger enforcement and deterrence, advocating for a bolder approach to regulating tech firms globally.
Her reflections also highlighted the role of the Digital Services Act (DSA) in overseeing social media platforms and addressing harmful content. Platforms like X and Telegram, which face criticism for inadequate content moderation, were pointed out as examples of why robust regulation is necessary. Vestager stressed that platforms undermining democracy must comply with the EU’s stringent laws.
As she prepares to transition to academia, Vestager’s departure marks the end of an era. While her legacy includes significant strides in holding tech companies accountable, the ongoing influence of these firms signals that the battle for better regulation is far from over. Teresa Ribera Rodríguez will succeed her, tasked with continuing this critical work.
South Korea announced plans to provide 14 trillion won ($10 billion) in low-interest loans next year to support its chip sector amid growing competition from China and uncertainty over US trade policies under President-elect Donald Trump. The funds, managed by state-run banks, will include 1.8 trillion won for infrastructure like power lines at a new high-tech chip complex in Yongin and Pyeongtaek, designed to attract advanced chipmakers.
The government highlighted challenges posed by rapid advancements in China’s semiconductor industry and potential changes to US policies like the Inflation Reduction Act and Chips Act, which could alter global trade incentives. Trump has also pledged new tariffs on goods from China, Mexico, and Canada, raising additional concerns for South Korean exporters.
While South Korea leads in memory chip manufacturing through giants like Samsung Electronics and SK Hynix, it faces setbacks in chip design and contract manufacturing, where rivals are gaining ground. The government vowed to use all available resources to help the industry overcome its current challenges and maintain global competitiveness.
