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.
Klaxon AI, a start-up based in Peterborough, has received £50,000 in funding from the UK’s innovation agency, Innovate UK, to develop a new tool that allows small businesses to create computer-generated podcast adverts. The new system, expected to launch in January, will enable companies to produce 30-second podcast ads in just a few minutes, providing a cost-effective alternative to traditional advertising methods.
Co-founder Arup Biswas expressed excitement over the funding, noting that the tool will be ‘incredibly cheap’ and accessible to small businesses that typically cannot afford podcast advertising. The system will allow users to input a few words about their business or provide specific text, with AI generating the audio advert.
The service will cost about £50 for businesses to download their ad, or they can opt to use it for free on Klaxon AI’s network of podcasts. The funding is part of a broader £30 million investment by Innovate UK in high-potential businesses within the creative sector.
After a four-year absence, Fortnite is once again available on iPhones across the European Union, thanks to new regulations under the EU’s Digital Markets Act. This development comes as Epic Games, the US based creator of Fortnite, has finally overcome legal challenges that led to the game’s removal from Apple’s App Store in 2020. At the time, the game was banned due to a dispute over in-app payment commissions, which led to a series of lawsuits against Apple and Google.
With the new law in place, Epic Games can relaunch Fortnite on iPhones within the EU, although Apple continues to block access outside Europe. Epic’s CEO, Tim Sweeney, expressed gratitude towards the European Commission for enforcing the regulations, ensuring that tech giants couldn’t hinder competition in the digital market. Alongside Fortnite, Epic’s mobile game store is also launching with other popular titles like Rocket League Sideswipe and Fall Guys.
Globally, Fortnite has also reappeared on Android devices, further expanding its reach. The company aims to add 100 million new mobile users by the end of the year, with plans to collaborate with other developers to offer a broader range of games through independent mobile stores such as AltStore.
This relaunch marks a significant victory for Epic Games, which had 75 million monthly active users in its PC store, now setting its sights on a massive mobile expansion. The return of Fortnite, particularly on iPhones in the EU, is likely to reignite the game’s popularity and player base.
Google has unveiled its latest lineup of Pixel smartphones, marking a significant shift towards deeper integration of artificial intelligence in its hardware. Unlike previous years, the company chose to announce the new models in the summer, positioning itself ahead of competitors as it races to incorporate AI technology across its products.
The new Pixel devices feature innovative AI-powered tools, including a unique function that allows users to search for information within screenshots. Additionally, Google’s chatbot, Gemini, can now be accessed as an overlay on other apps, offering assistance and generating content. The launch event, held at Alphabet’s Bay View campus, showcased these advancements, with Google’s senior vice president of devices and services, Rick Osterloh, emphasising the company’s commitment to practical AI applications.
With AI taking centre stage, Google’s event impressed industry experts, with some noting it as one of the most comprehensive presentations the company has ever held. This early release strategy comes as Google aims to stay ahead of its rivals, particularly Apple, which is expected to launch new AI features in its products later this year.
The Pixel 9 series includes several models, with the base version priced at $799, $100 more than its predecessor. The devices will start shipping in August, with the Pixel 9 Pro and Pixel 9 Pro Fold set for release in September, further highlighting Google’s push to lead in the AI-driven smartphone market.
Google’s dominance in the search engine market faces growing challenges from AI advancements, particularly from OpenAI, while also dealing with ongoing antitrust scrutiny. A recent US ruling deemed Google’s search monopoly illegal, marking a significant victory for regulators. However, experts argue that the real threat to Google is the rapid adoption of AI tools like OpenAI’s ChatGPT, reshaping how people search the internet.
Despite Google’s long-standing control of around 90% of the global search market, the rise of AI-powered search alternatives is beginning to erode its position. Former Google engineers and industry analysts believe AI’s impact will be felt much sooner than the effects of antitrust rulings, which often take years.
Historically, Apple has partnered with Google for search services, but it is now exploring AI-driven alternatives. The tech giant has announced a non-exclusive partnership with OpenAI to integrate ChatGPT into its devices, signalling a shift from Google’s search dominance.
OpenAI’s move into the search market with its AI-powered SearchGPT further intensifies the competition. Some analysts predict that AI’s influence on search could outpace regulatory actions, potentially dismantling Google’s monopoly.
Why does it matter?
Although Google has the resources to lead in AI development, its response could have been faster than that of competitors like OpenAI’s swift rise. Google’s initial missteps with AI-powered search features, which were criticised for inaccuracies and errors, have raised concerns about the company’s ability to maintain trust with users.
Analysts suggest that while antitrust actions may not immediately weaken Google’s position, they could pave the way for increased competition in the search market. However, breaking Google’s dominance will be challenging, and whether these developments will lead to significant changes in consumer choice remains to be seen.
The Bangko Sentral ng Pilipinas (BSP) has announced that it will lift the moratorium on new digital banking licenses starting January 1, 2025, allowing four more digital banks to operate in the country. The move comes as the BSP seeks to tap the potential of digital banks to enhance the Philippine financial system while ensuring that risks are effectively managed. Since the introduction of the Digital Banking Framework in December 2020, six digital banks have already begun operations in the Philippines, and the upcoming licenses will accommodate both new banks and conversions.
BSP Governor Eli Remolona Jr. emphasised that the central bank will closely monitor the digital banking sector as it evolves, particularly assessing the impact of new players on the banking system. The application process for these new licenses will be stringent, focusing on applicants’ value propositions, business models, and resource capabilities. Applicants must meet standard licensing criteria, including transparency of ownership, suitable shareholder composition, and strong governance and risk management frameworks.
The BSP is particularly interested in applicants who can bring innovative products and services that differentiate them from existing market players. The central bank expects these new digital banks to reach broader clientele, especially those in untapped or underserved market segments. The decision to allow more digital banks aligns with the BSP’s goals of promoting financial system stability, advancing financial inclusion, and driving digital transformation.
This development follows the BSP’s previous decision to cap digital bank licenses at six and temporarily close the application window in August 2021. The central bank has also been involved in approving a stablecoin pilot programme as part of its broader efforts to enhance the digital landscape within a regulated framework.
