Digital business models Archives | Page 530 of 572

Perplexity launches shopping hub to compete with Google

Perplexity, an AI-driven search startup, has unveiled a new shopping hub to attract users and compete with Google’s dominance in search. Backed by Amazon founder Jeff Bezos and Nvidia, the platform offers visually rich product cards in response to shopping-related queries, integrating with platforms like Shopify to provide real-time product details.

The rollout includes features like ‘Snap to Shop,’ which uses photos to suggest products and a Merchant Program that allows retailers to share their offerings with Perplexity. Initially available in the US, the service will expand to other markets at a later date.

This move comes as Perplexity raises new investments at a reported $9 billion valuation and seeks to compete with OpenAI, which recently introduced enhanced search features for ChatGPT. The startup aims to leverage AI-powered tools to boost its presence in e-commerce and attract both users and merchants.

Samsung unveils AI smart glasses with Google and Qualcomm

Samsung has teamed up with Google and Qualcomm to develop advanced AI-powered smart glasses, set for release in Q3 2025. Initial production will feature 500,000 units, targeting a competitive edge over existing options like Meta’s and Ray-Ban’s smart glasses. Equipped with AI and augmented reality (AR) technologies, the glasses promise enhanced interactivity and user experiences.

The device boasts Qualcomm’s AR1 chip for performance and NXP’s auxiliary processor for added computing. High-resolution imaging is ensured with a 12MP Sony IMX681 camera, supporting superior video and image capture. Lightweight at 50 grams, it offers features like gesture and human recognition, QR-based payments, and extended use powered by a 155mAh battery.

Google’s Gemini large language model will integrate into the software, delivering smarter user interactions and contextual understanding. Samsung disclosed the development during its earnings report, with analysts expecting a possible showcase at the January Galaxy Unpacked event, alongside the Galaxy S25.

Market excitement grows as Samsung enters the competitive smart glasses arena, setting a high standard for innovation and functionality. Observers anticipate a significant shift in wearable technology driven by AI and AR advancements.

Keras creator François Chollet departs Google after a decade

François Chollet, a prominent AI figure and creator of the popular Keras API, announced his departure from Google after nearly ten years. In a post on X, Chollet shared that he will be starting a new venture with a friend, but details remain undisclosed. Reflecting on his time at Google, he highlighted the transformation of deep learning from a niche academic interest to a global industry.

Keras, developed by Chollet, has become a widely used tool in AI, with over two million users. It powers advanced technologies like Waymo’s autonomous vehicles and the recommendation engines of platforms such as YouTube and Netflix. Beyond Keras, Chollet’s work on the Abstraction and Reasoning Corpus (ARC) benchmark and the ongoing $1 million ARC Prize reflects his innovative contributions to AI research.

Chollet has consistently voiced concerns about the dominant approaches in AI development, advocating for models that reason more like humans, rather than simply relying on vast amounts of data. Even after his departure, he will continue contributing to Keras, while Jeff Carpenter will take over as the team lead. Chollet’s vision remains focused on developing AI as a tool to advance human knowledge.

Booking.com committed to EU compliance as DMA rules apply

Booking.com must comp l y with strict European Union regulations as of Thursday due to its designation as a ‘gatekeeper’ under the Digital Markets Act (DMA). The European Commission has placed significant obligations on the travel reservation platform, ensuring it moderates content effectively, supports fair competition, and makes it simpler for consumers to switch between services. The DMA targets tech giants with major market dominance, holding them accountable through measures that could include fines and operational restrictions.

The company affirmed it is fully compliant, citing extensive efforts to adapt to the rules. In a blog post, Booking.com stated that it has implemented solutions that meet regulatory demands while maintaining a high standard of service for travellers and partners. It also expressed a commitment to ongoing dialogue with EU authorities and stakeholders.

Under the DMA, companies identified as gatekeepers are defined by having over 45 million monthly users and significant market capitalisation. Non-compliance could lead to fines of up to 10% of a company’s global revenue, rising to 20% for repeated violations. Additionally, the Commission has the power to limit acquisition activities if a company fails to adhere to the rules.

Congressional panel pushes for AI investment to counter China

A US congressional commission has proposed a bold initiative modeled on the Manhattan Project to accelerate the development of artificial general intelligence (AGI) that could rival or surpass human intelligence. The US-China Economic and Security Review Commission (USCC) emphasised the importance of public-private partnerships to drive technological innovation as competition with China intensifies. However, the panel provided no specific funding plans in its annual report.

Commissioner Jacob Helberg highlighted China’s rapid advancements in AGI, warning of potential shifts in global power dynamics. Addressing infrastructure bottlenecks, he suggested streamlining regulations for data centres as a step to accelerate AI progress. Tech leaders like OpenAI have also advocated for increased government investment in AI to maintain global competitiveness.

Beyond AI, the USCC report included recommendations to tighten trade regulations, particularly by ending the “de minimis” exemption that allows duty-free imports under $800. Commissioner Kimberly Glas underscored the challenge of inspecting the overwhelming volume of such shipments, which she claimed serve as a channel for unregulated Chinese goods, including dangerous materials. Proposals to curb this exemption have sparked bipartisan debate, though legislative progress has been hampered by industry opposition and political gridlock.

EU, Japan, South Korea push for semiconductor growth

Global semiconductor sales surged in Q3 2024, with a 23.2% year-over-year growth and a 10.7% quarter-over-quarter increase, fueled by rising demand from industries like AI, big data, and electric vehicles. Countries around the world, including China, the US, and the EU, are investing heavily in semiconductor development to secure a competitive edge in the global chip market.

The EU is focusing on photonic technology, committing €133 million to establish a photonic integrated circuit (PIC) pilot line in the Netherlands by 2025. This initiative aims to enhance Europe’s position in the growing photonic chip market, driven by the demand for more efficient data transmission for cloud computing and AI applications.

Japan has also made a significant move, announcing a ¥10 trillion ($65 billion) investment by 2030 to support its semiconductor and AI industries. This funding is part of a broader strategy to boost chip production and innovation, with a focus on the collaboration between Rapidus, IBM, and Belgium’s Imec.

South Korea is ramping up its semiconductor support through a proposed Semiconductor Special Act, which includes financial backing and workweek exemptions for semiconductor manufacturers. The bill reflects the country’s commitment to strengthening its semiconductor industry, with plans for a ₩26 trillion funding initiative and an ₩800 billion fund to support the semiconductor ecosystem by 2027.

Major players revolutionising AI adoption

AI is becoming a central feature in widely used technologies, with major firms embedding AI into familiar products. Meta’s AI chatbot now enhances platforms like Facebook and Instagram, while Apple’s new Apple Intelligence introduces advanced features for iPhones. Google has unveiled AI-powered search summaries and its chatbot Gemini, while Amazon is upgrading Alexa with enhanced AI capabilities. These efforts aim to seamlessly incorporate AI into daily life.

Experts view familiar platforms as key to driving consumer adoption of AI. Generative AI tools such as ChatGPT have introduced many to the technology, building awareness and readiness. Analysts predict that existing devices like smartphones will play a pivotal role in what is being called the ‘consumer AI revolution.’ Apple’s reach alone could soon enable 20% of the global population to access AI-driven features.

The road to widespread integration is not without obstacles. Apple’s AI features have faced criticism over delays, and Amazon’s AI-enhanced Alexa faces strong competition from Google Nest. However, investment in AI infrastructure remains robust, with companies aiming to transform industries, including smart homes and financial services, through more intelligent systems.

As AI becomes embedded in everyday technology, future innovations promise deeper integration and enhanced user experiences. Anticipated advancements include more intuitive interactions and a shift in how people engage with technology, potentially reshaping daily routines and consumer expectations.

Semiconductor companies shift focus to Vietnam

Global semiconductor manufacturers are accelerating their shift from China to Viet n am, driven by the anticipated intensification of US sanctions on China’s semiconductor industry, especially with the return of Donald Trump to the White House. South Korean firms, including Samsung Electronics and SK Hynix, are leading this transition, halting production expansions in China and focusing investments on Vietnam, which has become a rising hub for semiconductor production.

SK Hynix, for instance, shelved plans to increase DRAM chip production at its Wuxi plant in China, while Samsung Electronics is cutting back on production at its NAND flash memory facility in Xi’an. Other companies are also following suit; South Korea’s Hana Micron is expanding its presence in Southeast Asia, and Amkor Technology is investing $1.6 billion in a new semiconductor packaging plant in Vietnam. The facility will feature advanced technology, with some equipment reportedly transferred from China.

Vietnam’s semiconductor industry is also benefiting from the growth of companies like Samsung, which established a $1.7 billion OLED plant in the country. Samsung’s semiconductor division is reportedly boosting its investments in Vietnam, encouraging further expansions from supporting companies. Semiconductor testing and packaging firm Signetics is set to invest $100 million in a new facility in Vietnam, and German company Infineon is considering setting up an R&D center in Hanoi.

This shift underscores the ongoing global realignment in the semiconductor industry as companies adapt to geopolitical tensions and US-China trade policies.

Elon Musk files antitrust lawsuit against Microsoft and OpenAI

Elon Musk has expanded his legal battle against OpenAI by adding Microsoft to his lawsuit, accusing both companies of engaging in illegal practices to monopolise the generative AI market. The federal antitrust claims, filed in Oakland, California, argue that the partnership between OpenAI and its largest investor, Microsoft, has sidelined competitors and restricted investment opportunities for other AI developers.

Musk’s complaint, which builds on his initial lawsuit from August, claims that OpenAI, which he helped to establish as a nonprofit, has deviated from its original mission. It has transformed into a highly profitable company, valued at $157 billion, and Musk argues that its partnership with Microsoft has created unfair market dominance. He is seeking to have the licensing agreement between the two companies voided and for them to divest assets gained through what he calls monopolistic practices.

The lawsuit also accuses Microsoft and OpenAI of circumventing regulatory oversight by entering exclusive agreements that Musk believes resemble a merger, without going through standard antitrust reviews. OpenAI has dismissed the claims as unfounded, while Musk’s legal team insists that the companies’ actions are damaging competition and transparency in the AI sector.

Musk’s tensions with OpenAI have been ongoing since he left the organisation, which he co-founded to develop safe AI. As OpenAI transitioned to a for-profit structure and secured billions from Microsoft, concerns grew about the concentration of power in the hands of a few dominant players in AI.

Airbus CEO criticises EU antitrust rules

Guillaume Faury, CEO of Airbus, raised concerns about how antitrust regulations hinder the European aerospace sector’s ability to compete with US-based SpaceX. Speaking at an aviation industry event in Frankfurt, Faury acknowledged SpaceX’s success, particularly its reusable Falcon 9 rocket, but highlighted how Europe’s regulatory framework restricts similar consolidation. Unlike SpaceX, which manufactures 80% of its components in-house, European companies like Airbus face complex supply chains and fragmented production models due to antitrust rules that require manufacturing distribution across multiple countries.

Faury pointed out that this fragmented system, while pleasing many stakeholders, limits efficiency and competitive flexibility. This is evident when comparing SpaceX’s cost-cutting ability with the struggles of Europe’s Ariane 6, which has yet to launch commercially despite plans for multiple flights per year. Meanwhile, SpaceX’s low-cost launches have revolutionised satellite deployment, launching nearly 7,000 satellites and creating fierce competition in the space industry.

Faury warned that unless European regulations adapt, the region risks falling behind in satellite and launch sectors, with Airbus already feeling the pressure, including a planned reduction of 2,500 jobs in its satellite division. SpaceX’s influence extends beyond commercial aerospace, as the company is also a major player in military and defence with initiatives like Starlink and lunar landing technology, supported by NASA and the US government.

However, concerns about SpaceX’s dominance in the US have also emerged, with NASA and the Pentagon seeking to reduce dependence on the company by promoting more competition in the aerospace sector, although antitrust complaints have not yet significantly affected SpaceX’s position.