American multinational transportation company Uber faces a significant penalty of €290 million in the Netherlands for transferring the personal data of European taxi drivers to the United States. The Dutch Data Protection Authority (DPA) ruled that the ride-hailing company violated the General Data Protection Regulation (GDPR) by failing to safeguard the data appropriately. Data transfer to the US was deemed a serious breach of the EU privacy laws.
Uber, which has halted the practice, plans to appeal the fine, arguing that its data transfer process complied with GDPR during legal uncertainty between the EU and the US. The appeal process could extend over four years, during which any fines will be suspended.
The case originated from a complaint by a French human rights organisation on behalf of over 170 taxi drivers in France. Although the complaint was initially filed with France’s national data protection regulator, CNIL, it was forwarded to the Dutch DPA because Uber’s European headquarters is in the Netherlands.
Earlier this year, Uber was also fined €10 million by the DPA for other privacy infringements involving its drivers’ data. These fines reflect increasing scrutiny over how global tech companies handle sensitive data across borders.
Google has entered a $250 million deal with the state of California to support local newsrooms, which have been struggling with widespread layoffs and declining revenues. The decision comes in the wake of proposed legislation that would have required tech companies to pay news providers when they run ads alongside news content. By securing this deal, Google has managed to sidestep such bills.
The Media Guild of the West, a local journalism union, has criticised the deal, calling it a ‘shakedown’ that fails to address the real issues plaguing the industry. They argue that the deal’s financial commitments are minimal compared to the wealth tech giants have allegedly ‘stolen’ from newsrooms.
The deal includes the creation of the News Transformation Fund, supported by Google and taxpayers, which will distribute funds to news organisations in California over five years. Additionally, the National AI Innovation Accelerator, funded by Google, will support various industries, including journalism, by exploring the use of AI in their work.
While some, including California Governor Gavin Newsom, have praised the initiative, others remain sceptical. Critics argue that the deal needs to be revised, pointing out that only Google contributes financially, with other tech giants like Meta and Amazon absent from the agreement.
The news industry’s challenges are significant, with California seeing a sharp decline in publishers and journalists over the past two decades. Big Tech’s dominance in the advertising market and its impact on publisher traffic have exacerbated these challenges, leading to calls for more robust solutions to sustain local journalism.
Apple is reportedly exploring generative AI to develop a new ‘personality’ for future robotic devices, potentially replacing Siri. Innovation like this could introduce a more natural and capable conversational interface in forthcoming products, echoing Amazon’s Astro. Mark Gurman from Bloomberg suggests that Apple’s tabletop robot could be priced under $1,000, though it’s still in the early stages of development with no guarantee of a release.
One vital piece of Apple’s robotic work is the creation of a personality. While Siri is the digital assistant on Apple’s current devices, the company is working on another humanlike interface based on GenAI. It could run on the tabletop and other future Apple robotics devices.
Apple’s broader focus on generative AI is evident in its upcoming Apple Intelligence suite, which will soon bring advanced AI features like text creation, summaries, and image generation to iPhones, iPads, and Macs. The new direction underscores the company’s commitment to next-gen AI, positioning it to compete with other tech giants already invested in the space.
Despite the potential, Apple remains cautious, with Gurman noting uncertainty about the company’s dedication to launching a home robot. As the tech world awaits the iPhone 16 launch, Apple’s AI ambitions hint at a significant shift in its approach to consumer technology.
Apple’s work on generative AI is powered by ChatGPT, highlighting the challenges before it can independently launch its AI chatbot. Whether or not Apple’s robotic ambitions materialise, the development marks a significant evolution in its AI strategy.
Despite its declining quarterly revenue, Baidu, in its statement, assured people that its leading position in AI in China will position it to navigate the increasingly competitive market. The comment comes from an AI price war in China, where companies are increasingly lowering the prices of large language models powering generative AI technologies.
Ernie, Baidu’s large language model, has been integrated into various applications to enhance user experience and is touted to be a competitor to OpenAI’s GPT. According to Baidu CEO Robin Li, the company’s Ernie platform processes over 600 million AI requests daily, the highest volume among Chinese firms. Li added, ‘Competition will be fierce over the next 2 to 3 years.’
As China’s dominant search engine, most revenue comes from ads. However, the company has strategically pivoted to AI by investing significantly in the sector to position itself as an ‘AI company’. The company has expanded its AI offerings by introducing a paid version of its Ernie-powered chatbot for public use and offering API services to developers via cloud computing. “Our advertising business is currently facing pressure caused by a combination of external factors and our proactive efforts to accelerate the AI-driven renovation of search,” Li said during a conference call with analysts.
Why does this matter?
The dipped revenue indicates Baidu’s difficulty in transitioning from search ads to AI as China faces an economic slump. Baidu’s news of prioritising AI as its search revenue stalls can be located as a part of the broader tech trend where, with the AI gold rush, companies increasingly look to increase their AI portfolios to ensure they retain their competitiveness and don’t fall behind in the AI market that is expected to accrue massive business value.
Perplexity AI, backed by Jeff Bezos and Nvidia, has announced its intention to initiate advertisement on its AI-based search engine platform by the fourth quarter of the year. Last month, the company rolled out a publisher’s program with partners comprising IME, Der Spiegel, Fortune, Entrepreneur, The Texas Tribune, and WordPress.
The AI-powered search engine space is still in its infancy, opening a massive market for new players. Among the big tech giants, Google has integrated AI in its search by providing AI-generated summaries or overviews for each search request. Meanwhile, its rival Microsoft has integrated OpenAI technology and launched the AI-powered Bing.
Why does it matter?
This move can potentially threaten Google’s dominant position in the industry. Through its search engine supremacy for two decades, Google became one of the world’s most valuable companies through its ad-based revenue model. Since ChatGPT launched, existing and upcoming search engines have attempted to integrate AI into web search and bring about a new business model in the search engine space.
A fast fashion retailer Shein has escalated its legal battle against rival Temu by filing a lawsuit accusing Temu of operating as an unlawful enterprise. The allegations against Temu include counterfeiting, theft of trade secrets, and manipulating sellers on its platform. Shein claims Temu exerts complete control over its sellers, even preventing them from removing products after admitting to intellectual property infringement.
The lawsuit is part of an ongoing feud between the two budget retailers, which have exchanged legal threats before. Temu had previously accused Shein of pressuring manufacturers to cut ties with it, while Shein claimed Temu encouraged false statements by influencers. Both companies are known for aggressive tactics to dominate the US market, where Temu has recently overtaken Shein in sales.
Shein’s latest lawsuit also highlights its own struggle to improve its reputation as it prepares to go public in the US. The company, notorious for poor working conditions and accusations of copying independent designers, now accuses Temu of similar practices. Both retailers are heavily reliant on the Chinese supply chain and exploit trade loopholes to maintain their competitive pricing.
Meanwhile, Shein itself faces a class action lawsuit, accused of large-scale copyright infringement against small designers and artists. Despite these legal challenges, Shein continues to battle Temu in a race to the bottom in the competitive world of fast fashion.
A recent report from research firm Arize AI reveals a dramatic surge in Fortune 500 companies identifying AI as a significant risk. Out of the 500 companies, 281—accounting for 56.2%—cited AI as a risk, marking a 473.5% increase from the previous year. The report suggests that while AI is seen chiefly as a risk factor, there are opportunities for businesses to stand out through innovation and transparency in their use of generative AI.
The media and entertainment industry is the most concerned, with 91.7% of its Fortune 500 companies citing AI risks. Netflix and Disney, for instance, highlighted potential competitive disadvantages and unsettled regulations impacting revenue and production processes. Other sectors such as software and tech (86.4%), telecommunications (70%), healthcare (65.1%), financial services (62.7%), and retail (60%) also expressed significant concerns. Conversely, the automotive, energy, and manufacturing sectors reported fewer AI-related issues, with only 18.8%, 37.3%, and 39.7% respectively recognising AI risks.
Notable companies have provided concrete examples of AI-related risks. Motorola warned that AI might malfunction or use flawed datasets, potentially harming operational results and reputation. Salesforce highlighted possible governmental scrutiny and reputational damage tied to its AI solutions, especially around human rights and privacy. The importance of AI in cybersecurity was also emphasised, noting both its potential for enhancing security and posing new threats.
The report underscores the need for consumer acceptance of AI’s benefits, with academic experts stressing that public trust is crucial. Overall, the findings indicate that AI risks are now a prominent concern for corporate America, but they also offer a chance for businesses to differentiate through proactive innovation and clear communication.
These partnerships are crucial for training AI models but have sparked controversy. Some media organisations, like The New York Times, have taken legal action against OpenAI, citing copyright concerns over the use of their content. OpenAI’s COO, Brad Lightcap, emphasised the company’s commitment to maintaining accuracy and integrity in news delivery as AI becomes increasingly integral to this process.
Roger Lynch, CEO of Condé Nast, highlighted the financial pressures news and digital media faced in recent years, attributing them to tech companies undermining publishers’ ability to monetise content. He sees the partnership with OpenAI as a step toward reclaiming some of that lost revenue.
OpenAI’s introduction of SearchGPT in July, a search engine with real-time internet access, marks a significant move into territory traditionally dominated by Google. The company is actively collaborating with its news partners to gather feedback and refine the performance of SearchGPT, aiming to enhance its role in the evolving landscape of digital news consumption.
Recogni, an AI chip and software startup backed by BMW, Bosch, and Mayfield, has unveiled a new computing method that could revolutionise the efficiency of AI systems. The patented system, called Pareto, uses a logarithmic approach to outperform current methods in running large AI models, potentially making AI chips smaller, faster, and less costly to operate. This new method significantly reduces power consumption by converting multiplication operations into simpler additions, all while maintaining accuracy.
Recogni has already tested Pareto on AI models from companies like Meta Platforms and Stability AI. The company’s first chip was developed using Taiwan Semiconductor Manufacturing Co’s seven-nanometer process. Recogni is now collaborating with an undisclosed partner to make Pareto more widely accessible, with further details expected in the coming months. The startup is also considering offering its technology through data centres, allowing broader access to its innovative AI computing solution.
Two leading South Korean AI chip makers, Rebellions Inc and Sapeon Korea Inc, have agreed to merge, aiming to compete with global giants like Nvidia. The merger, confirmed after negotiations began in June, represents a significant move in the competitive AI chip market.
Sapeon Korea is backed by major firms in South Korea, including SK Telecom and SK Hynix, adding considerable strength to the merger. Rebellions, on the other hand, recently secured a $15 million investment from Saudi Aramco’s venture capital arm, Wa’ed Ventures, raising its total funding to over $225 million.
The combined entity is expected to leverage its enhanced resources and technology to innovate and compete more effectively. With strong backing and significant funding, the merger could reshape the landscape of the AI chip market in the region.
