Digital cooperation

Apple explores AI partnerships for iPhones in China

According to sources familiar with the matter, Apple is in early talks with Tencent and ByteDance to integrate their AI models into iPhones sold in China. This comes as Apple rolls out OpenAI’s ChatGPT in other markets, but regulatory restrictions in China prevent the availability of the chatbot there. To comply with local rules and counter the declining market share, Apple is exploring partnerships with Chinese firms that already have government-approved AI models.

Potential partners include ByteDance’s Doubao and Tencent’s Hunyuan, part of a growing field of AI services in China. Although Apple previously discussed using Baidu’s Ernie model, reports suggest technical disagreements halted progress. Baidu’s shares dropped following news of these challenges, while Tencent’s stock saw a boost.

Apple faces increasing pressure in China’s competitive smartphone market, where domestic rivals like Huawei are surging ahead. Huawei’s recent AI-equipped models have attracted consumers, contributing to a 42% spike in sales. In contrast, Apple’s third-quarter sales dipped slightly, underscoring the need for a successful AI integration strategy to regain momentum in China.

US awards SK Hynix grant for AI chip facility

The US Commerce Department has finalised a $458 million grant for SK Hynix to support an advanced chip packaging plant and AI research facility in Indiana. The South Korean company, a key supplier for Nvidia, plans to invest $3.87 billion in the project, which will produce high-bandwidth memory chips used in AI systems. The government will also provide $500 million in loans as part of the deal.

The Indiana facility is expected to create 1,000 jobs and strengthen the US semiconductor supply chain. SK Hynix’s CEO, Kwak Noh-Jung, highlighted the importance of building a resilient AI chip infrastructure in the United States. This grant is part of the $39 billion program approved by Congress in 2022 to boost domestic semiconductor production.

The Commerce Department has issued grants to major chipmakers like Intel, Micron, and TSMC. With the SK Hynix deal complete, only Samsung’s $6.4 billion award remains pending. The initiative aims to bolster US leadership in semiconductor technology and reduce reliance on foreign manufacturing.

Apple criticises Meta’s requests for access to iPhone tools

Apple has accused Meta of making excessive interoperability requests that could compromise user privacy and security, intensifying the rivalry between the two tech giants. Under the European Union’s Digital Markets Act (DMA), Apple must allow competitors access to its services or face significant fines. Apple claims Meta’s 15 requests — more than any other company — could expose sensitive data like messages, emails, and passwords.

Meta, which seeks integration for products like its Quest VR headsets and smart glasses, dismissed Apple’s privacy concerns as a cover for anticompetitive practices. Apple cited Meta’s past privacy violations in Europe as a reason for caution.

Meanwhile, the European Commission has outlined measures to ensure Apple complies with the DMA, including clear timelines and feedback mechanisms for developers. A final decision on Apple’s compliance with the law is expected in March 2025.

Italian watchdog concludes Booking.com investigation

Italy’s antitrust authority has concluded its investigation into Booking.com, finding the travel giant’s proposed changes sufficient to resolve concerns about its dominance in the market. The probe, which began in March, scrutinised whether the company’s practices restricted competition and led to higher prices for consumers.

The Italian watchdog highlighted that Booking.com’s Preferred Partner Programme risked stifling competition by favouring certain hotels while reducing consumer choice. As part of its commitments, the platform agreed not to consider prices offered by hotels on other booking channels when managing or promoting participating properties.

These adjustments are intended to ensure fairer competition in the online travel sector, preventing practices that could inflate costs or limit options for users. By addressing these issues, Booking.com avoids further regulatory action and strengthens its position in Italy’s travel market.

Dutch tech firms unite for Eindhoven growth

A coalition of Dutch technology firms, including chip equipment maker ASML, has announced plans to contribute approximately $230 million towards infrastructure development in Eindhoven, one of Europe’s fastest-growing technology hubs. This initiative aligns with the Dutch government’s “Operation Beethoven,” a €2.5 billion programme aimed at improving housing, transport, education, and electricity in the region.

The corporate funding will complement public investment, supporting projects coordinated by the regional development agency Brainport. Willem van der Leegte, CEO of manufacturing giant VDL Groep, a key ASML supplier, emphasised the mutual benefits of the collaboration, stating, “What is good for the region is good for the companies, and vice versa.” Other prominent contributors include chipmaker NXP and health technology firm Philips.

Eindhoven’s rapid growth as a technology hub has placed increased demand on local infrastructure. By joining forces, public and private sectors aim to create sustainable development that supports both the region’s workforce and the companies driving innovation.

Basis lands $34 million to revolutionise accounting

Basis, an AI startup, has secured $34 million in a Series A funding round to develop its AI-powered accounting automation product. The round, led by Khosla Ventures, attracted a diverse group of investors, including NFDG (the AI-focused fund managed by former GitHub CEO Nat Friedman and ex-Apple executive Daniel Gross), OpenAI board members Larry Summers and Adam D’Angelo, and Google’s chief scientist Jeff Dean.

The New York-based company is part of a growing group of AI startups creating autonomous agents—systems capable of performing tasks independently. Basis’ product, designed specifically for accounting firms, can handle various workflows such as entering transactions, verifying data accuracy, and integrating with popular ledger systems like QuickBooks and Xero. The product has already shown promising results, with large firms like Wiss reporting a 30% reduction in time spent on manual accounting tasks. Basis functions similarly to a junior accountant, allowing staff to focus on reviewing the AI’s work rather than completing tasks themselves.

Basis also aims to address the critical shortage of accountants in the US, exacerbated by retiring baby boomers and a decline in younger generations entering the profession. According to the Bureau of Labor Statistics, the accounting sector employs over 3 million people, but the number of candidates sitting for the CPA exam has fallen by 33% between 2016 and 2021. The shortage has led many firms to outsource work to countries like India. Moreover, with AI’s potential to automate tasks traditionally performed by accountants, the sector is expected to experience significant disruption. A 2023 OpenAI paper suggested that automation powered by large language models could eventually impact all accountant and auditor roles.

Partnership aims to advance AI in electric vehicles

Synopsys and SiMa.ai, two Silicon Valley-based companies, have announced a partnership to accelerate the development of energy-efficient AI chips designed for automotive applications. Synopsys, a leader in chip-design software, will collaborate with SiMa.ai, a startup known for its low-power hardware and software tailored for diverse AI functions.

The collaboration aims to meet the increasing demand for advanced AI technologies in electric vehicles, where efficient energy use is critical. SiMa.ai’s technology supports a range of applications, from driver-assistance systems that improve safety to voice assistants enabling hands-free commands. These tools often require different types of hardware, and the partnership allows automakers to simulate and select the best combinations for their needs.

The companies see this as a step towards integrating features like voice assistants into cars within the next three years. SiMa.ai’s CEO, Krishna Rangasayee, highlighted the importance of adapting data centre-level AI performance into power-efficient solutions for vehicles, ensuring both high performance and minimal energy consumption.

New carbon removal tech targets paper mills and sewage

Major firms including Google, Stripe, and Shopify have pledged $80 million to support innovative carbon capture technologies, targeting emissions from paper mills and sewage plants in the US. This investment is part of the Frontier coalition’s strategy to develop cost-effective solutions for reducing atmospheric carbon.

Two start-ups, CO280 and CREW, will benefit from the funding. CO280 plans to deploy carbon capture technology adapted from the oil industry to trap emissions from paper mills. Meanwhile, CREW will enhance wastewater treatment processes with limestone to absorb carbon dioxide, leveraging rocks’ natural CO2-attracting properties.

The coalition’s aim is to drive down the cost of carbon removal to $100 per metric ton in the US, a significant reduction from current prices. Frontier’s head of deployment, Hannah Bebbington, highlighted the potential to integrate these technologies into older industries, paving the way for large-scale, affordable carbon removal in the near future.

Parliamentarians gather at IGF 2024 to shape a prosperous digital future

Parliamentarians from across the globe convened at the Internet Governance Forum (IGF) 2024 in Riyadh to explore their pivotal role in shaping inclusive and secure digital governance frameworks. The ‘Parliamentary Track Roundtable: A Powerful Collective Force for Change’ session underscored the necessity of international collaboration and the harmonisation of digital legislation to address shared challenges and opportunities in an increasingly interconnected world.

Hakob Arshakyan, Vice President of the National Assembly of the Republic of Armenia, presented his country’s ‘Crossroads of Peace’ initiative, aimed at fostering connectivity across regions by reopening blocked roads and railways. He highlighted Armenia’s strides in digitalisation and stressed the importance of seamless cross-border legislation to unlock the full potential of digital public services and unified governance platforms.

Meanwhile, Norway’s Sigbjørn Gjelsvik championed the principles of inclusivity and accessibility, announcing Norway’s upcoming hosting of the IGF in June 2025 and reiterating the commitment to an open internet. The digital divide, particularly in rural regions, took centre stage as Namibia’s Maria Ilago detailed her nation’s efforts to enhance digital literacy and connectivity.

She emphasised the significance of localised digital content to ensure inclusivity. Issa Al-Otaibi, a member of the Shura Council from Saudi Arabia, mirrored these sentiments, sharing Saudi Arabia’s bold investments in AI, smart cities, and capacity development for legislators to balance governance with technological innovation.

Human-centred governance and safeguarding rights in the digital sphere were key themes for Argentina’s member of parliament, Pamela Calletti. She addressed concerns over disinformation and manipulation, advocating for robust regulations to protect individuals online. Pakistani senator Palwasha Mohammad Zai Khan underscored the role of youth in driving digital transformation, calling for regional cooperation to bolster cybersecurity and infrastructure.

Across these varied perspectives, common themes emerged: the pressing need for international collaboration, bridging digital divides, and the importance of fostering cybersecurity and data privacy. Speakers also emphasised engaging youth in policy-making and equipping legislators with technical expertise to navigate complex digital landscapes.

The roundtable illustrated the power of collective action in shaping a global digital future. As countries grapple with rapid technological advances, the insights and commitments from IGF 2024 call for parliaments worldwide to lead with vision and unity in the digital age.

All transcripts from the Internet Governance Forum sessions can be found on dig.watch.

US grants $406 million to boost GlobalWafers production

The US Commerce Department has finalised $406 million in grants to Taiwan’s GlobalWafers to boost silicon wafer production in Texas and Missouri. These funds will support the first large-scale US production of 300-mm wafers, critical components in advanced semiconductors. This initiative is part of the Biden administration’s effort to strengthen the domestic supply chain for chips.

The grant will aid GlobalWafers’ nearly $4 billion investment in building new manufacturing facilities, creating 1,700 construction jobs and 880 permanent manufacturing positions. The company plans to produce wafers for cutting-edge, mature-node, and memory chips in Sherman, Texas, and wafers for defence and aerospace chips in St. Peters, Missouri.

GlobalWafers’ CEO Doris Hsu expressed enthusiasm about collaborating with US-based customers for years to come. Currently, over 80% of the global 300-mm silicon wafer market is controlled by just five companies, with most production concentrated in East Asia.

This funding is part of the $52.7 billion CHIPS and Science Act, aimed at expanding domestic semiconductor manufacturing. Recent grants include $6.165 billion for Micron Technology and significant subsidies for Intel, TSMC, and GlobalFoundries.