E-commerce and trade

Xpeng plans major investment in humanoid robots

Chinese electric vehicle maker Xpeng is making a long-term push into humanoid robots, with potential investments reaching up to 100 billion yuan ($13.8 billion), according to CEO He Xiaopeng. Speaking at the annual parliamentary session, He described the company’s current investment as conservative but signalled a willingness to scale up significantly over the next two decades. Xpeng, which entered the humanoid robotics sector in 2020, unveiled its Iron humanoid robot last November, positioning it as a rival to Tesla’s Bot.

Chinese automakers are increasingly venturing into robotics, encouraged by policymakers aiming for breakthroughs in the field. Stellantis-backed Leapmotor has also joined the race, forming a robotics team to develop machines for industrial applications such as factory assembly lines. CEO Zhu Jiangming stated that these robots are intended to enhance efficiency by replacing human labour in production processes.

Xpeng’s CEO suggested that automakers could invest between 1-2 billion yuan per year in developing and deploying humanoid robots in real-world scenarios. As the industry shifts towards automation, carmakers are betting that advanced robotics will play a crucial role in future manufacturing and mobility solutions.

For more information on these topics, visit diplomacy.edu.

Poland pushes ahead with tech tax despite US criticism

Poland’s deputy prime minister reaffirmed plans to introduce a new tax on big tech firms despite warnings from the incoming US ambassador, intensifying tensions between Warsaw and Washington. Deputy Prime Minister Krzysztof Gawkowski dismissed Ambassador Thomas Rose’s remarks as interference, calling it ‘sick’ for another country to dictate Poland’s legislation.

The dispute adds to growing friction between the two allies, fueled by a recent online clash involving US Secretary of State Marco Rubio, Elon Musk, and Polish Foreign Minister Radoslaw Sikorski over Poland’s funding of Ukraine’s Starlink services. Polish Prime Minister Donald Tusk also weighed in, cautioning against ‘arrogance’ from Poland’s allies.

While Gawkowski has not provided specifics on the proposed tax, he suggested it would target the profits of major tech companies operating in Poland and support local tech development. However, some within Poland’s coalition government question the timing, warning of potential trade consequences. Meanwhile, the nationalist opposition party Law and Justice (PiS) argues that the move risks straining relations with Washington.

For more information on these topics, visit diplomacy.edu.

Chinese investors turn to AI for stock market edge

Chinese retail investors are rapidly embracing AI tools like DeepSeek to navigate the stock market, marking a striking shift from last year’s government crackdown on computer-driven quantitative trading.

Online courses and packed training rooms reflect a growing eagerness among small-time traders to use AI-powered models, with many seeing them as essential in the digital age.

DeepSeek, developed by a hedge fund in Hangzhou, has not only boosted Chinese stocks but also reshaped perceptions of the country’s $700 billion hedge fund industry.

Despite the initial backlash against quant funds, which were previously blamed for market volatility, investors are now paying thousands of yuan to attend AI trading seminars.

Social media is flooded with courses teaching traders how to use DeepSeek to analyse companies, pick stocks, and even code their own trading strategies.

While major US funds like BlackRock and Renaissance Technologies have long used AI for investments, DeepSeek’s open-source model makes these tools accessible to China’s smaller asset managers and individual traders.

Financial institutions are also adapting to the AI-driven shift. Brokers are rushing to integrate AI models into their platforms, with industry leaders predicting a complete transformation in how Chinese investors make decisions.

Many now seek trading advice from DeepSeek instead of human wealth managers, reflecting a deep trust in the technology. However, experts warn that AI models still have limitations and could create market risks, especially if large numbers of traders act on the same signals.

While some remain cautious about AI’s role in investing, DeepSeek has undeniably changed public attitudes towards quant fund managers.

Many now view them as contributors to market efficiency rather than as culprits behind retail losses. As China’s stock market continues to evolve, AI looks set to play an increasingly dominant role in shaping investor behaviour.

For more information on these topics, visit diplomacy.edu.

Meta has developed an AI chip to cut reliance on Nvidia, Reuters reports

Meta, the owner of Facebook, Instagram, and WhatsApp, is testing its first in-house chip designed for training AI systems, sources told Reuters.

The social media giant has started a limited rollout of the chip, planning to scale up production if testing delivers positive results. The move represents a crucial step in Meta’s strategy to lessen dependence on external suppliers like Nvidia and lower substantial infrastructure costs.

The company has projected expenses between $114 billion and $119 billion for 2025, with up to $65 billion dedicated to AI infrastructure.

The chip, part of Meta’s Meta Training and Inference Accelerator (MTIA) series, is a dedicated AI accelerator, meaning it is specifically designed for AI tasks rather than general processing. This could make it more power-efficient than traditional GPUs.

Meta is collaborating with Taiwan-based chip manufacturer TSMC to produce the new hardware. The test phase follows Meta’s first ‘tape-out’ of the chip, a crucial milestone in silicon development where an initial design is sent to a chip factory.

However, this process is costly and time-consuming, with no guarantee of success, and any failure would require repeating the tape-out step.

Meta has previously faced setbacks in its custom chip development, including scrapping an earlier version of an inference chip after poor test results. However, the company has since used another MTIA chip for AI-powered recommendations on Facebook and Instagram.

The new training chip aims to first enhance recommendation systems before expanding to generative AI applications like the chatbot Meta AI.

Meta executives hope to implement their own chips for AI training by 2026, although the company continues to be one of Nvidia’s biggest customers, investing heavily in GPUs for its AI operations.

The development comes as AI researchers increasingly question whether scaling up large language models by adding more computing power will continue to drive progress. The recent emergence of more efficient AI models, such as those from Chinese startup DeepSeek, has intensified these debates.

While Nvidia remains a dominant force in AI hardware, fluctuating investor confidence and broader market concerns have caused turbulence in the company’s stock value.

For more information on these topics, visit diplomacy.edu.

US drops AI investment proposal against Google

The US Department of Justice (DOJ) has decided to drop its earlier proposal to force Alphabet, Google’s parent company, to sell its investments in AI companies, including its stake in Anthropic, a rival to OpenAI.

The proposal was originally included in a wider initiative to boost competition in the online search market. The DOJ now argues that restricting Google’s AI investments might lead to unintended consequences in the rapidly changing AI sector.

While this move represents a shift in the government’s approach, the DOJ and 38 state attorneys general are continuing their antitrust case against Google. They argue that Google holds an illegal monopoly in the search market and is distorting competition.

The government’s case includes demands for Google to divest its Chrome browser and implement other measures to foster competition.

Google has strongly opposed these efforts, stating that they would harm consumers, the economy, and national security. The company is also planning to appeal the proposals.

As part of the ongoing scrutiny, the DOJ’s latest proposal mandates that Google notify the government of any future investments in generative AI, a move intended to curb further concentration of power in the sector.

This case is part of a broader wave of antitrust scrutiny facing major tech companies like Google, Apple, and Meta, as US regulators seek to rein in the market dominance of Big Tech.

For more information on these topics, visit diplomacy.edu.

NHS looks into Medefer data flaw after security concerns

NHS is investigating allegations that a software flaw at private medical services company Medefer left patient data vulnerable to hacking.

The flaw, discovered in November, affected Medefer’s internal patient record system in the UK, which handles 1,500 NHS referrals monthly.

A software engineer who found the issue believes the vulnerability may have existed for six years, but Medefer denies this claim, stating no data has been compromised.

The engineer discovered that unprotected application programming interfaces (APIs) could have allowed outsiders to access sensitive patient information.

While Medefer has insisted that there is no evidence of any breach, they have commissioned an external security agency to review their systems. The agency confirmed that no breach was found, and the company asserts that the flaw was fixed within 48 hours of being discovered.

Cybersecurity experts have raised concerns about the potential risks posed by the flaw, emphasising that a proper investigation should have been conducted immediately.

Medefer reported the issue to the Information Commissioner’s Office (ICO) and the Care Quality Commission (CQC), both of which found no further action necessary. However, experts suggest that a more thorough response could have been beneficial given the sensitive nature of the data involved.

For more information on these topics, visit diplomacy.edu.

Fast-delivery firms face antitrust scrutiny in India

Fast-delivery giants Zomato, Swiggy, and Zepto are facing an antitrust investigation in India over allegations of deep discounting practices that harm smaller retailers.

The All India Consumer Products Distributors Federation (AICPDF), which represents 400,000 distributors, has filed a case with the Competition Commission of India (CCI) to examine the business practices of these companies.

They claim that the discounting strategies of these platforms result in unfair pricing models that harm traditional retailers.

The quick-commerce sector in India, where products are delivered within minutes from local warehouses, has grown rapidly in recent years. However, this growth has come at the expense of brick-and-mortar stores, which cannot match the discounts offered by online platforms.

A recent survey showed a significant shift in consumer behaviour, with many shoppers reducing their purchases from supermarkets and independent stores due to the appeal of fast-delivery options.

The filing by the AICPDF, which has reviewed the pricing of several popular products, accuses companies like Zepto, Swiggy’s Instamart, and Zomato’s Blinkit of offering products at prices significantly lower than those available in traditional stores.

However, this has raised concerns about the long-term impact on local businesses. The CCI is now set to review the case, which may result in a formal investigation.

As India’s quick-commerce market continues to grow, estimated to reach $35 billion by 2030, the regulatory scrutiny of this sector is intensifying. The outcome of this case could shape the future of the industry, especially as companies like Zepto and Swiggy prepare for further expansion.

For more information on these topics, visit diplomacy.edu.

Indonesia approves Apple’s local content certificates

Indonesia has granted local content certificates for 20 Apple products, including the iPhone 16 after the company met requirements for locally-made components.

Apple still needs further approvals from the communications and trade ministries before it can officially sell the devices in the country.

The certification follows Apple’s recent pledge to invest over $300 million in Indonesia, including funding component manufacturing plants and a research and development centre.

Last year, the country had banned iPhone 16 sales due to non-compliance with local content rules.

Industry ministry spokesperson Febri Hendri Antoni Arief confirmed that Apple received certificates for 11 phone models and nine tablets.

However, negotiations had been ‘tricky’, according to Indonesia’s industry minister. Apple remains outside the top five smartphone brands in Indonesia, according to research firm Canalyst.

For more information on these topics, visit diplomacy.edu.

Reddit launches new tools to improve user engagement

Reddit has introduced new tools to help users follow community rules and track content performance, aiming to boost engagement on the platform. The update comes after a slowdown in user growth due to Google’s algorithm changes, though traffic from the search engine has since recovered.

Among the new features is a ‘rules check’ tool, currently being tested on smartphones, which helps users comply with subreddit guidelines. Additionally, a post-recovery option allows users to repost content in alternative subreddits if their original submission is removed. Reddit will also suggest subreddits based on post content and clarify posting requirements for specific communities.

The company has enhanced its post insights feature, offering detailed engagement metrics to help users refine their content. This follows Reddit’s December launch of Reddit Answers, an AI-powered search tool designed to provide curated summaries of community discussions, which is still in beta testing.

For more information on these topics, visit diplomacy.edu.

Microsoft to boost AI investment in South Africa

Microsoft has announced plans to invest an additional 5.4 billion rand (about $296.81 million) by 2027 to enhance its cloud and AI infrastructure in South Africa.

The investment comes in response to the increasing demand for the company’s Azure services in the region, with a particular focus on meeting the needs of businesses integrating AI technology into their operations.

Brad Smith, Vice Chair and President of Microsoft, revealed the initiative during an event in Johannesburg, confirming that the company would also fund technical certification exams for 50,000 individuals.

These exams will cover crucial digital skills, including cloud architecture, AI, and cybersecurity, aiming to address the shortage of skilled professionals in high-demand sectors.

The new investment builds on Microsoft’s previous spending of 20.4 billion rand to establish South Africa’s first enterprise-grade data centres in Johannesburg and Cape Town.

These data centres have become essential hubs for handling the computational demands of AI, as local businesses look to adopt AI-driven solutions.

The company’s broader strategy includes a global commitment to invest around $80 billion in 2025 to further develop data centres and deploy AI and cloud-based applications. South Africa, as a growing tech hub, is expected to play a key role in Microsoft’s plans for the future.

For more information on these topics, visit diplomacy.edu.