E-commerce and trade

South Korea to grant crypto firms venture company status

South Korea will grant cryptocurrency firms ‘venture company’ status from 16 September, giving them access to tax breaks, financing support, and other incentives. The move follows a partial revision of the Venture Business Act removing restrictions on crypto trading and brokerage.

The regulatory change aims to stimulate growth in the crypto and blockchain sectors. Advantages include research and development grants, credit guarantees, and the ability for existing venture companies to expand into crypto without losing their status.

Minister Han Seong-sook said the measure will help create a transparent and responsible ecosystem for venture capital and innovation.

Crypto firms were first restricted in October 2018, and the ban’s removal reflects industry maturity and better user protections. Officials expect the change to accelerate growth in virtual asset trading, blockchain technologies, smart contracts, and cybersecurity.

South Korea’s crypto industry has already benefited from a friendlier environment under President Lee Jae-myung. The market is projected to reach $1.1 billion in revenue in 2025 and $1.3 billion by 2026, with exchange users surpassing 16 million, over 30% of the population.

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Oracle and OpenAI drive record $300B investment in cloud for AI

OpenAI has finalised a record $300 billion deal with Oracle to secure vast computing infrastructure over five years, marking one of the most significant cloud contracts in history. The agreement is part of Project Stargate, OpenAI’s plan to build massive data centre capacity in the US and abroad.

The two companies will develop 4.5 gigawatts of computing power, equivalent to the energy consumed by millions of homes.

Backed by SoftBank and other partners, the Stargate initiative aims to surpass $500 billion in investment, with construction already underway in Texas. Additional plans include a large-scale data centre project in the United Arab Emirates, supported by Emirati firm G42.

The scale of the deal highlights the fierce race among tech giants to dominate AI infrastructure. Amazon, Microsoft, Google and Meta are also pledging hundreds of billions of dollars towards data centres, while OpenAI faces mounting financial pressure.

The company currently generates around $10 billion in revenue but is expected to spend far more than that annually to support its expansion.

Oracle is betting heavily on OpenAI as a future growth driver, although the risk is high given OpenAI’s lack of profitability and Oracle’s growing debt burden.

A gamble that rests on the assumption that ChatGPT and related AI technologies will continue to grow at an unprecedented pace, despite intense competition from Google, Anthropic and others.

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2025 State of the Union: Tech sovereignty amid geopolitical pressure

The European Commission President, Ursula von der Leyen, delivered her 2025 State of the Union address to the European Parliament in Strasbourg. The speech set out priorities for the coming year and was framed by growing geopolitical tensions and the push for a more self-reliant Europe.

Von der Leyen highlighted that global dynamics have shifted.

‘Battlelines for a new world order based on power are being drawn right now, ’ she said.

In this context, Europe must take a more assertive role in defending its own security and advancing the technologies that will underpin its economic future. The President characterised this moment as a turning point for European independence.

Digital policy appeared less prominently than expected in the address. Von der Leyen often referred to ‘technology sovereignty’ to encompass not only digital technologies, but also other types of technologies necessary for the green transition and to achieve energetic autonomy. In spite of that, some specific references to digital policy are worth highlighting.

  • Europe’s right to regulate. Von der Leyen defended Europe’s right to set its own standards and regulations. The assertion came right after her defence of the US-EU trade deal, making it a direct response to the mounting pressure and tariff threats from the US President Donald Trump’s administration.
  • Regulatory simplification. A specific regulatory package (omnibus) on digital was promised, under inspiration from the Draghi report on EU competitiveness. 
  • Investment in digital technology. Startups in key areas, such as quantum and AI, could receive particular attention, in order to enhance the availability of European capital and strengthen European sovereignty in these areas. According to her, the Commission ‘will partner with private investors on a multi-billion euro Scaleup Europe Fund’. No concrete figures were provided, however.
  • Artificial intelligence as key to European independence. In order to support this sector, von der Leyen highlighted the importance of some initiatives, such as the Cloud and AI Development Act, and the European AI Gigafactories. She praised the commitment of CEOs from some leading European companies to invest in digital in the recently launched AI and Tech Declaration. 
  • Mainstreaming information integrity. According to von der Leyen, Europe’s democracy is under attack, with the rise of information manipulation and disinformation. She proposed to create a new European Centre for Democratic Resilience, which will bring together all the expertise and capacity across member states and neighbouring countries. A new Media Resilience Programme aimed at supporting independent journalism and media literacy was also announced.
  • Limits to the use of social media by young people. The President of the Commission raised concerns about the impact of social media on children’s mental health and safety. She committed to convening a panel of experts to consider restrictions for social media access, referencing efforts that have been put in place in Australia.  

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Google avoids breakup as AI reshapes search and threatens e-commerce traffic

The US tech giant Google will not be forced to divest Chrome or Android following the long-running US monopoly case.

Judge Mehta ruled that while Google holds a monopoly in traditional search, the rise of AI companies is creating new competitive pressures.

The judgement prevents Google from striking exclusive distribution deals but still allows it to pay partners for preloading and placement of its products. The court also ordered Google to loosen its control over search data, a move that could enable rivals to build their own AI-driven search tools.

Yet, concerns remain for e-commerce businesses.

Google Zero, the company’s AI-powered search summary, is cutting website traffic by keeping users within Google’s results.

Research shows sharp declines in mobile click-through rates, leaving online retailers uncertain of their future visibility.

Experts warn that zero-click searches are becoming the norm. Businesses are being urged to optimise for Google’s AI overviews, enhance the value of product and review pages, track traffic impacts, and diversify their marketing channels.

While Google has avoided structural remedies, its dominance in search and AI appears far from over.

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AI export rules tighten as the US opens global opportunities

President Trump has signed an Executive Order to promote American leadership in AI exports, marking a significant policy shift. The move creates new global opportunities for US businesses but also introduces stricter compliance responsibilities.

The order establishes the American AI Exports Program, overseen by the Department of Commerce, to develop and deploy ‘full-stack’ AI export packages.

These packages cover everything from chips and cloud infrastructure to AI models and cybersecurity safeguards. Industry consortia will be invited to submit proposals, outlining hardware origins, export targets, business models, and federal support requests.

A central element of the initiative is ensuring compliance with US export control regimes. Companies must align with the Export Control Reform Act and the Export Administration Regulations, with special attention to restrictions on advanced computing chips.

New guidance warns against potential violations linked to hardware and highlights red flags for illegal diversion of sensitive technology.

Commerce stresses that participation requires robust export compliance plans and rigorous end user screening.

Legal teams are urged to review policies on AI exports, as regulators focus on preventing misuse of advanced computing systems in military or weapons programmes abroad.

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Microsoft brings Anthropic AI into Office 365 as OpenAI tensions rise

The US tech giant Microsoft is expanding its AI strategy by integrating Anthropic’s Claude models into Office 365, adding them to apps like Word, Excel and Outlook instead of relying solely on OpenAI.

Internal tests reportedly showed Anthropic’s systems outperforming OpenAI in specific reasoning and data-processing tasks, prompting Microsoft to adopt a hybrid approach while maintaining OpenAI as a frontier partner.

The shift reflects growing strain between Microsoft and OpenAI, with disputes over intellectual property and cloud infrastructure as well as OpenAI’s plans for greater independence.

By diversifying suppliers, Microsoft reduces risks, lowers costs and positions itself to stay competitive while OpenAI prepares for a potential public offering and develops its own data centres.

Anthropic, backed by Amazon and Google, has built its reputation on safety-focused AI, appealing to Microsoft’s enterprise customers wary of regulatory pressures.

Analysts believe the move could accelerate innovation, spark a ‘multi-model era’ of AI integration, and pressure OpenAI to enhance its technology faster.

The decision comes amid Microsoft’s push to broaden its AI ecosystem, including its in-house MAI-1 model and partnerships with firms like DeepSeek.

Regulators are closely monitoring these developments, given Microsoft’s dominant role in AI investment and the potential antitrust implications of its expanding influence.

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Arm unveils Lumex mobile chips built for AI

UK-based chip designer Arm introduced Lumex, a next-generation chip design explicitly designed to power AI on smartphones, smartwatches, and next-generation PCs.

Arm, whose processor architecture underpins devices from Apple and Nvidia, described Lumex as its most advanced platform yet for real-time AI assistance, communication and on-device personalisation.

Arm’s senior vice-president Chris Bergey said consumers now expect instant, private, seamless AI features instead of gradual improvements.

The Lumex platform combines performance, privacy, and efficiency, allowing partners to use the design as delivered or configure it to their own requirements.

A brand that is part of a broader naming structure includes Neoverse for infrastructure, Niva for PCs, Zena for automotive, and Orbis for the internet of things.

Meanwhile, Arm is reportedly preparing to manufacture its chips, having recruited Amazon’s Rami Sinno, who helped build Trainium and Inferentia, to strengthen its in-house ambitions.

These moves mark a significant moment for Arm, as the company seeks to expand its influence in the AI hardware space and reduce reliance on licensing alone.

With the rise of generative AI, the push for high-performance chips designed around on-device intelligence is becoming central to the future of mobile technology.

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Japan and Taiwan deepen semiconductor collaboration beyond business

Experts from Japan and Taiwan have highlighted closer cooperation in semiconductors, stressing that ties extend beyond business into education and research.

At a forum in Taipei, SEMI’s Terry Tsao said Taiwan’s chip design and fabrication expertise complements Japan’s materials and manufacturing equipment strengths. He noted that TSMC’s Kumamoto expansion creates opportunities for talent development in partnership with local schools.

Tsao described Taiwanese growth as a golden semiconductor era, emphasising its success closely tied to Japanese collaboration. He argued that TSMC’s achievements in Japan also represent progress for Japan’s industry.

Kazuhito Hashimoto, head of the Japan Science and Technology Agency, said joint projects with Taiwan’s National Science and Technology Council are underway. He pledged support for expanded research exchanges between the two partners.

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Google boosts Gemini with audio uploads and NotebookLM upgrades

The US tech giant has expanded the capability of its Gemini app by allowing users to upload audio files for AI analysis across Android, iOS, and the web. The upgrade enables transcription of interviews, voice memos and lecture recordings instead of relying solely on typed or spoken prompts.

Free-tier users can upload clips of up to ten minutes with five prompts daily, while paid subscribers have access to three hours of uploads across multiple files. According to Gemini vice president Josh Woodward, the feature is designed to make the platform more versatile and practical for everyday tasks.

Google has also enhanced its Search AI mode with five new languages, including Hindi, Japanese and Korean, extending its multilingual reach.

NotebookLM, the company’s research assistant powered by Gemini, can now generate structured reports such as quizzes, study guides and blog posts from uploaded content, available in more than 80 languages.

These improvements underline Google’s ambition to integrate AI more deeply into everyday applications instead of leaving the technology confined to experimental tools. They also highlight growing competition in the AI market, with Google using Gemini 2.5 to expand its services for global users.

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AI Mode in Google Search adds multilingual support to Hindi and four more languages

Google has announced an expansion of AI Mode in Search to five new languages, including Hindi, Indonesian, Japanese, Korean and Brazilian Portuguese. The feature was first introduced in English in March and aims to compete with AI-powered search platforms such as ChatGPT Search and Perplexity AI.

The company highlighted that building a global search experience requires more than translation. Google’s custom version of Gemini 2.5 uses advanced reasoning and multimodal capabilities to provide locally relevant and useful search results instead of offering generic answers.

AI Mode now also supports agentic tasks such as booking restaurant reservations, with plans to include local service appointments and event ticketing.

Currently, these advanced functions are available to Google AI Ultra subscribers in the US, while India received the rollout of the language expansion in July.

These developments reinforce Google’s strategy to integrate AI deeply into its search ecosystem, enhancing user experience across diverse regions instead of limiting sophisticated AI tools to English-language users.

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