E-commerce and trade

FuriosaAI rejects $800m acquisition offer from Meta

FuriosaAI, a South Korean startup specialising in AI chips, has reportedly turned down an $800 million acquisition offer from Meta.

Instead of selling, FuriosaAI plans to continue developing its AI chips. Disagreements over post-acquisition business strategy and organisational structure were reportedly the cause of the breakdown in negotiations, rather than issues over price.

Meta, which has been trying to reduce its reliance on Nvidia for chips specialised in training large language models (LLMs), unveiled its custom AI chips last year. The company also announced plans to invest up to $65 billion this year to support its AI initiatives.

FuriosaAI, founded in 2017 by June Paik, who previously worked at Samsung Electronics and AMD, has developed two AI chips—Warboy and Renegade (RNGD).

The startup is also in talks to raise approximately $48 million and is planning to launch the RNGD chips later this year, with LG AI Research already testing them for use in its AI infrastructure.

FuriosaAI’s decision to focus on expanding its chip production signals its confidence in competing with giants like Nvidia and AMD in the rapidly growing AI hardware market.

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

Web access comes to Anthropic Claude chatbot

Anthropic has added web search functionality to its Claude chatbot, marking a major step forward for the AI assistant. The feature is now available in preview for paying users in the US, with plans to expand to free users and more countries in the near future. Once enabled via profile settings, Claude will automatically pull information from across the web to help respond to queries, complete with source citations.

The capability is limited to the newest version of Claude, the Claude 3.7 Sonnet model. According to Anthropic, the goal is to combine Claude’s conversational skills with up-to-date information, allowing it to deliver more accurate and relevant AI responses. Early testing suggests the web search doesn’t always activate, particularly for current events, but when it does, it sources from a range of platforms including social media and news outlets.

This move brings Claude in line with competing chatbots such as ChatGPT, Gemini and Le Chat, all of which already integrate web access. Anthropic had previously resisted the feature, insisting that Claude was meant to be self-contained, but market pressure appears to have shifted that stance.

Despite the new functionality, concerns persist over accuracy. Studies have shown that leading chatbots regularly produce incorrect or misleading responses when sourcing from the internet. Anthropic acknowledges these risks but believes that providing clear citations and structured output will help mitigate confusion and improve user trust.

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

Apple accused of misleading AI advertising

Apple is facing a class-action lawsuit in the United States over delays in delivering its much-promoted Apple Intelligence features.

The legal action, filed in a US based San Jose federal court, claims the company misled customers by advertising advanced AI tools that have yet to materialise on supported devices.

The complaint argues that buyers of new iPhones and other Apple products were promised ‘transformative’ AI capabilities at launch, only to find these features were either severely limited or completely absent.

According to the plaintiffs, Apple’s marketing created a “reasonable consumer expectation” that was ultimately not met.

This legal challenge adds to mounting pressure on the company, which has struggled to roll out its next-generation AI tools.

A recent Bloomberg report suggested internal tensions, revealing that CEO Tim Cook has reportedly lost confidence in AI chief John Giannandrea’s ability to deliver on the company’s ambitions.

The case reflects growing scrutiny of tech firms’ promises around AI, especially as consumer trust becomes more closely tied to the reality behind flashy announcements.

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

AMD vs Intel in the CPU market battle

The competition between AMD and Intel remains intense, despite Intel’s larger market share. In recent years, AMD has emerged as the preferred choice for gamers, often topping sales charts, including Amazon’s CPU best-sellers list.

Just yesterday, AMD dominated the top 15 spots instead of Intel. Surprisingly, the top processor was AMD’s Ryzen 7 9800X3D, a high-end gaming chip, priced at $480, despite its occasional stock shortages.

The top 15 list featured a mix of older and newer AMD processors, such as the Ryzen 5 5500 and Ryzen 5 5600X, indicating that AMD has successfully kept older hardware relevant and in demand.

However, today’s best-seller list paints a slightly different picture, as Intel has managed to secure several spots, with older models like the Alder Lake chips offering more affordable alternatives to current AMD processors.

Interestingly, Intel’s latest Arrow Lake processors did not make it to the top 50 best-sellers on Amazon. This suggests that many customers prefer the more affordable Intel options or turn to AMD, which has shifted the market dynamics significantly in recent years.

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

EU pushes for satellite internet funding for Ukraine

The European Commission has urged EU nations to fund Ukraine’s access to satellite internet through European commercial providers, amid growing concerns over the country’s reliance on Elon Musk’s Starlink.

The call, outlined in a newly published defence white paper, comes as Ukraine faces potential service disruptions unless it agrees to a minerals deal with the US. European satellite operators are now in talks with the EU to explore alternative solutions.

Brussels has proposed granting Kyiv access to the EU’s space programme to ensure stable connectivity for the Ukrainian Armed Forces.

The initiative aims to strengthen Ukraine’s resilience by diversifying its satellite-based services. Poland, which partially funds Ukraine’s Starlink access, has also backed the need for alternative providers.

Spain’s Hisdesat has confirmed plans to expand its coverage over Ukraine, while other European satellite firms, such as Eutelsat and SES, have been approached for potential involvement.

The move reflects Europe’s broader strategy to secure independent infrastructure for Ukraine and reduce dependence on private or non-EU providers.

The Commission’s proposal, if implemented, could mark a significant shift in how Kyiv maintains vital communications during the ongoing conflict.

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

Apple faces EU crackdown over closed technology

The European Commission has ordered Apple to grant rival smartphone, headphone, and virtual reality companies access to its technology and mobile operating system.

The directive, part of the bloc’s Digital Markets Act, aims to curb the dominance of major tech firms and enhance competition. A separate mandate also requires Apple to establish a structured process for responding to interoperability requests from app developers.

Apple strongly criticised the decision, arguing that it places unfair constraints on its ability to innovate and benefits competitors without imposing the same restrictions on them.

Expressing concerns, the company warned that the new rules could negatively impact its products and European users, adding that the additional regulatory burden might slow progress.

The European Commission, however, dismissed Apple’s objections, stating that the order simply enforces existing laws and provides regulatory clarity.

Failure to comply could result in an investigation and potential fines of up to 10% of Apple’s global annual revenue. The ruling underscores the EU’s determination to rein in the power of Big Tech and ensure a more competitive digital market.

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

AI firm Cognite targets India as global tech hub

Cognite, the Saudi Aramco-backed industrial software company, has launched an AI services centre in Bengaluru as part of its global expansion strategy.

The firm, which specialises in optimising industrial operations, is seeking contracts with major Indian conglomerates and has already secured deals with a leading cement manufacturer and a major automotive firm.

While declining to name the companies, Cognite’s executives confirmed significant investments in the Indian market, with plans for further expansion.

Chief Executive Girish Rishi described India as a key growth destination, highlighting its appeal as an alternative to China for global tech firms.

Cognite’s parent company, Aker ASA, and major shareholders like Saudi Aramco have been supporting its global push, as AI-driven solutions increasingly play a role in industrial automation, safety, and efficiency.

The company, which recently relocated its headquarters to the US, counts AkerBP, Japanese refiner Cosmo Energy Holdings, and US-based Koch Chemical among its major clients.

India’s rapidly expanding technology sector has drawn interest from several global giants, including Apple, Tesla, and Jabil, following the Indian government’s incentives to attract international firms.

With AI transforming industries worldwide, Cognite’s move signals growing confidence in India’s capabilities as a major player in the global tech ecosystem.

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

EU faces pressure to boost semiconductor supply chain

Leading semiconductor firms are calling on the European Commission to introduce a follow-up to the 2023 EU Chips Act, arguing that a new policy must extend beyond manufacturing to include chip design, materials, and equipment.

Industry groups say the original programme, while encouraging investment, has failed to attract advanced chipmakers or build a competitive supply chain. Approval processes have also been criticised for being too slow, delaying key projects.

Following discussions in Brussels with European lawmakers, representatives from industry groups ESIA and SEMI Europe announced plans to formally request a ‘Chips Act 2.0’ from the Commission.

They argue that the EU must take decisive action to strengthen the entire semiconductor industry, including research and development as well as supplier subsidies.

European Parliament Member Oliver Schenk highlighted how other regions, such as Taiwan, have successfully integrated suppliers into their chip manufacturing ecosystem, whereas Europe still lacks such cohesion.

The meeting included major semiconductor companies such as NXP, Infineon, Bosch, and STMicroelectronics, alongside equipment makers ASML, ASM, and Zeiss.

Meanwhile, a coalition of nine EU countries has pledged to work with the Commission to strengthen Europe’s semiconductor capabilities.

The Commission has yet to outline specific plans, but it has previously stated its intention to launch investment initiatives this year, particularly in artificial intelligence and technology.

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

Microsoft invests $2.2 billion in Malaysian cloud expansion

Microsoft is set to launch its first cloud region in Malaysia, featuring three data centres in the greater Kuala Lumpur area.

The centres, known as Malaysia West, will begin operations by mid-year, marking a significant step in the company’s $2.2 billion investment in the country.

However, this move is part of Microsoft’s broader plan to expand its cloud and AI services in Southeast Asia. Microsoft estimates the investment will generate $10.9 billion in revenue and create over 37,000 jobs in Malaysia over the next four years.

Laurence Si, managing director of Microsoft Malaysia, stated that the company’s operations in Malaysia remain on track despite concerns over US export controls on semiconductor chips.

Microsoft remains confident in its relationships with stakeholders and its ability to meet its investment commitments.

Local businesses are expected to benefit from enhanced cloud and AI capabilities, with the country aiming to become a leading hub for technological innovation in the region.

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

Ofcom backs broadband competition to expand full-fibre coverage

Britain should maintain competition in the broadband market to boost full-fibre coverage to 96% of premises by 2027 while capping prices on slower-speed services, UK telecoms regulator Ofcom announced on Thursday.

The cap would limit what BT’s Openreach can charge for connections up to 80Mbit/s, an increase from the current 40Mbit/s limit.

Ofcom’s previous measures, including encouraging new providers to use Openreach’s infrastructure, have helped increase full-fibre coverage from under 25% to nearly 70% of homes.

It now proposes keeping high-speed broadband prices free from regulation until 2031 while ensuring affordability for those relying on older copper-fibre connections.

In rural areas where commercial networks are less viable, Ofcom plans to support Openreach in expanding full-fibre access. The regulator’s consultation on these proposals will run until June 12, with final decisions expected in March 2026. BT shares rose 0.5% following the announcement.

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