Digital business models Archives | Page 535 of 583

Orange partners with OpenAI in Europe

Orange has entered a groundbreaking multi-year partnership with OpenAI, becoming the first European telecom company with direct access to pre-release versions of the company’s AI models. This collaboration will allow Orange to influence OpenAI’s development roadmap while ensuring secure hosting of AI infrastructure in Europe, according to the group’s AI chief, Steve Jarrett.

The partnership highlights the strategic importance of OpenAI’s widely used models, with over 50,000 Orange employees already integrating them into their work. Jarrett emphasised the financial and technological advantages of a direct relationship with OpenAI, boosting Orange’s position in the AI race.

In addition to the partnership, Orange is working with Meta and OpenAI to translate African languages like Wolof and Pular for customer support and broader non-commercial uses. The initiative aims to support governments, universities, and startups, expanding accessibility to underserved linguistic communities.

Google Labs launches GenChess to blend AI with creative chess gameplay

Google Labs has unveiled GenChess, a new AI-powered web project that adds a creative twist to the traditional game of chess. The experiment allows players to design their own chess pieces using Google’s Gemini Imagen 3 image-generation model. By typing text prompts, users can customise their chess sets with themes like sushi or pizza, giving each game a personalised touch. GenChess offers two styles: a classic mode that mimics traditional pieces and a creative mode for abstract designs. Players can further refine individual pieces for a truly bespoke gaming experience.

Once the custom set is complete, players can face an AI opponent with chess pieces generated on complementary themes. For instance, a sushi-themed set might compete against a taco-inspired set. Users can select from three difficulty levels—easy, medium, or hard—and two timer options to match their playstyle. The project showcases AI’s potential in creative design and user interaction, merging art and gameplay into one cohesive experience.

The launch of GenChess coincides with Google’s broader initiatives around chess during the World Chess Championship. These include a coding challenge in partnership with the International Chess Federation (FIDE) on Google-owned Kaggle, encouraging participants to create innovative AI chess engines. Additionally, Google plans to launch Chess Gem, an interactive feature in the Gemini app next month. This tool will allow Gemini Advanced subscribers to play chess against a conversational AI, blending gameplay with witty banter. The range of initiatives highlights Google’s commitment to integrating AI into diverse aspects of life, from gaming to advanced problem-solving.

Australia enacts groundbreaking law banning under-16s from social media

Austr a lia has approved a groundbreaking law banning children under 16 from accessing social media, following a contentious debate. The new regulation targets major tech companies like Meta, TikTok, and Snapchat, which will face fines of up to A$49.5 million if they allow minors to log in. Starting with a trial period in January, the law is set to take full effect in 2025. The move comes amid growing global concerns about the mental health impact of social media on young people, with several countries considering similar restrictions.

The law, which marks a significant political win for Prime Minister Anthony Albanese, has received widespread public support, with 77% of Australians backing the ban. However, it has faced opposition from privacy advocates, child rights groups, and social media companies, which argue the law was rushed through without adequate consultation. Critics also warn that it could inadvertently harm vulnerable groups, such as LGBTQIA or migrant teens, by cutting them off from supportive online communities.

Despite the backlash, many parents and mental health advocates support the ban, citing concerns about social media’s role in exacerbating youth mental health issues. High-profile campaigns and testimonies from parents of children affected by cyberbullying have helped drive public sentiment in favour of the law. However, some experts warn the ban could have unintended consequences, pushing young people toward more dangerous corners of the internet where they can avoid detection.

The law also has the potential to strain relations between Australia and the United States, as tech companies with major US ties, including Meta and X, have voiced concerns about its implications for internet freedom. While these companies have pledged to comply, there remain significant questions about how the law will be enforced and whether it can achieve its intended goals without infringing on privacy or digital rights.

FTC challenges Microsoft over cloud practices

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 unveils advanced AI to compete in generative technology

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 challenges verdict in Epic Games lawsuit

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.

US awards $7.86 billion to boost Intel chip production

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.

Pony AI secures $260 million in US IPO

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.

Draft crypto law signals shift in Morocco’s policy

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.

Former AI pioneer Inflection now targets enterprise tools

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.