E-commerce and trade

Minister urges Indian start-ups to shift focus from ice cream to semiconductors

India’s Commerce Minister Piyush Goyal has sparked controversy by questioning whether Indian start-ups should focus on semiconductor chips instead of gluten-free ice creams and food delivery apps.

Speaking at a start-up conference, he compared India’s consumer internet boom unfavourably with China’s advances in robotics and AI, urging entrepreneurs to pursue more ambitious tech innovations instead of safe lifestyle products.

While acknowledging the position of India as the world’s third-largest start-up ecosystem, Goyal faced pushback from founders who argued consumer apps often evolve into tech pioneers.

Quick-commerce CEO Aadit Palicha noted that companies like Amazon began as consumer platforms before revolutionising cloud computing. However, investors admitted deep-tech struggles for funding, with most capital chasing quick-return ventures instead of long-term hardware or AI projects.

The debate highlights India’s innovation crossroads. Despite having 4,000 deep-tech start-ups, projected to reach 10,000 by 2030, they attracted just 5% of 2023 funding instead of China’s 35%.

Experts suggest the government could help by offering tax incentives instead of criticism, and building research bridges between academia and start-ups to compete globally in advanced technologies

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Trump moves to prop up struggling coal industry

President Trump is set to sign an executive order designating coal as a critical mineral instead of allowing its continued decline in the energy sector.

The order will force some coal-fired power plants slated for closure to remain operational, with the administration citing rising electricity demand from data centres instead of acknowledging coal’s dwindling competitiveness.

Currently, coal generates just 15% of US electricity instead of its 51% share in 2001, having been overtaken by cheaper natural gas and renewables.

Environmental experts warn coal remains the dirtiest energy source instead of cleaner alternatives, releasing harmful pollutants linked to health issues like heart disease and mercury poisoning. While the order may temporarily slow plant closures, analysts note it won’t reverse coal’s decline.

Solar and wind power now undercut operating costs at nearly all US coal plants instead of being more expensive, as was once the case.

The move could have more impact in steelmaking, where coal is still used instead of newer green steel techniques in most production. However, for power generation, renewables can be deployed faster than new coal plants instead of struggling to meet demand.

The order appears to prioritise political symbolism instead of addressing energy market realities, as even existing coal plants struggle to compete with increasingly affordable clean energy alternatives.

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New AI firm Deep Cogito launches versatile open models

A new San Francisco-based startup, Deep Cogito, has unveiled its first family of AI models, Cogito 1, which can switch between fast-response and deep-reasoning modes instead of being limited to just one approach.

These hybrid models combine the efficiency of standard AI with the step-by-step problem-solving abilities seen in advanced systems like OpenAI’s o1. While reasoning models excel in fields like maths and physics, they often require more computing power, a trade-off Deep Cogito aims to balance.

The Cogito 1 series, built on Meta’s Llama and Alibaba’s Qwen models instead of starting from scratch, ranges from 3 billion to 70 billion parameters, with larger versions planned.

Early tests suggest the top-tier Cogito 70B outperforms rivals like DeepSeek’s reasoning model and Meta’s Llama 4 Scout in some tasks. The models are available for download or through cloud APIs, offering flexibility for developers.

Founded in June 2024 by ex-Google DeepMind product manager Dhruv Malhotra and former Google engineer Drishan Arora, Deep Cogito is backed by investors like South Park Commons.

The company’s ambitious goal is to develop ‘general superintelligence,’ AI that surpasses human capabilities, rather than merely matching them. For now, the team says they’ve only scratched the surface of their scaling potential.

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Amazon’s Nova Reel can now generate two-minute AI videos

Amazon has enhanced its generative AI video tool, Nova Reel, with an update that allows for the creation of videos up to two minutes long.

The updated model, Nova Reel 1.1, supports multi-shot video generation with a consistent style and accepts detailed prompts of up to 4,000 characters.

A new feature called Multishot Manual gives users more creative control, combining images and short prompts to guide video composition. However, this mode supports up to 20 shots from a single 1280 x 720 image and a 512-character prompt, offering finer-tuned outputs.

Nova Reel is currently accessible through Amazon Web Services (AWS), including its Bedrock AI development suite, although developers must request access, which is automatically granted.

The model enters a competitive field dominated by OpenAI, Google, and others racing to lead in generative video AI.

Despite its growing capabilities, Amazon has not disclosed how the model was trained or the sources of its training data. Questions around intellectual property remain, but Amazon says it will shield customers from copyright claims through its indemnification policy.

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IBM unveils AI-powered mainframe z17

IBM has announced the launch of its most advanced mainframe yet, the z17, powered by the new Telum II processor. Designed to handle more AI operations, the system delivers up to 50% more daily inference tasks than its predecessor.

The z17 features a second-generation on-chip AI accelerator and introduces new tools for managing and securing enterprise data. A Spyre Accelerator add-on, expected later this year, will enable generative AI features such as large language models.

More than 100 clients contributed to the development of the z17, which also supports a forthcoming operating system, z/OS 3.2. The OS update is set to enable hybrid cloud data processing and enhanced NoSQL support.

IBM says the z17 brings AI to the core of enterprise infrastructure, enabling organisations to tap into large data sets securely and efficiently, with strong performance across both traditional and AI workloads.

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Bank appoints head of AI enablement

Standard Chartered has appointed David Hardoon as its global head of AI enablement, further embedding AI across its operations.

Based in Singapore, he will report to group chief data officer Mohammed Rahim.

Hardoon will lead AI governance and identify areas where AI can enhance productivity, efficiency, and client experiences. His appointment follows the bank’s recent rollout of a generative AI tool to over 70,000 employees across 41 markets.

The bank has been steadily introducing AI-driven tools, including a smart video column to provide insights for clients in Asia. It plans further expansion of its internal AI systems across additional regions.

With more than 20 years of experience in data and AI, including with Singapore’s central bank, Hardoon is expected to guide the responsible and strategic use of AI technologies across Standard Chartered’s global footprint.

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Google blends AI mode with Lens

Google is enhancing its experimental AI Mode by combining the visual power of Google Lens with the conversational intelligence of Gemini, offering users a more dynamic way to search.

Instead of typing queries alone, users can now upload photos or take snapshots with their smartphone to receive more insightful answers.

The new feature moves beyond traditional reverse image search. For instance, you could snap a photo of a mystery kitchen tool and ask, ‘What is this, and how do I use it?’, receiving not only a helpful explanation but links to buy it and even video demonstrations.

Rather than focusing on a single object, AI Mode can interpret entire scenes, offering context-aware suggestions.

Take a photo of a bookshelf, a meal, or even a cluttered drawer, and AI Mode will identify items and describe how they relate to each other. It might suggest recipes using the ingredients shown, help identify a misplaced phone charger, or recommend the order to read your books.

Behind the scenes, the system runs multiple AI agents to analyse each element, providing layered, tailored responses.

Although other platforms like ChatGPT also support image recognition, Google’s strength lies in its decades of search data and visual indexing. Currently, the feature is accessible to Google One AI Premium subscribers or those enrolled in Search Labs via the Google mobile app.

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OpenAI negotiates $500m deal for AI startup

OpenAI is reportedly in talks to acquire io Products, an AI hardware startup co-founded by former Apple design chief Jony Ive and OpenAI CEO Sam Altman, in a deal that could exceed $500 million.

Instead of focusing solely on software like ChatGPT and API tools, OpenAI appears to be eyeing consumer devices as a way to diversify its revenue.

io Products is said to be working on AI-powered consumer tech, including a screenless smartphone and smart home gadgets.

The company’s team includes several former Apple designers, such as Tang Tan and Evans Hankey. Instead of traditional screens, these new devices are expected to explore more ambient and context-aware ways of interaction.

Jony Ive, best known for his role in designing iconic Apple products like the iPhone and iMac, left Apple in 2019 to launch his design consultancy, LoveFrom.

His collaboration with Altman on io Products was publicly confirmed last year and has already drawn interest from high-profile backers, including Laurene Powell Jobs. Funding for the startup was projected to reach $1 billion by the end of 2024.

The move echoes Altman’s previous investments in AI hardware, such as Humane Inc., a wearable tech startup that also focused on screenless interaction. Instead of scaling that venture, however, HP acquired some of Humane’s assets for $166 million earlier this year.

OpenAI’s potential acquisition of io Products could mark a significant shift toward physical consumer products in the AI space.

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Anthropic grows its presence in Europe

Anthropic is expanding its operations across Europe, with plans to add over 100 new roles in sales, engineering, research, and business operations. Most of these positions will be based in Dublin and London.

The company has also appointed Guillaume Princen, a former Stripe executive, as its head for Europe, the Middle East, and Africa. This move signals Anthropic’s ambition to strengthen its global presence, particularly in Europe where the demand for enterprise-ready AI tools is rising.

The company’s hiring strategy also reflects a wider trend within the AI industry, with firms like Anthropic competing for global market share after securing significant funding.

The recent $3.5 billion funding round bolsters Anthropic’s position as it seeks to lead the AI race across multiple regions, including the Americas, Europe, and Asia.

Instead of focusing solely on the US, Anthropic’s European push is designed to comply with local AI governance and regulatory standards, which are increasingly important to businesses operating in the region.

Anthropic’s expansion comes at a time when AI firms are facing growing competition from companies like Cohere, which has been positioning itself as a European-compliant alternative.

As the EU continues to shape global AI regulations, Anthropic’s focus on safety and localisation could position it favourably in these highly regulated markets. Analysts suggest that while the US may remain a less regulated environment for AI, the EU is likely to lead global AI policy development in the near future.

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AI tool boosts accuracy of cancer treatment predictions

A Slovenian-US biotech company, Genialis, is harnessing AI to revolutionise cancer treatment by tackling a major obstacle: the lack of reliable biomarkers to predict how patients will respond to therapy. Using an AI-driven model developed from over a million global samples, the company aims to personalise treatment with far greater accuracy.

Founded nine years ago as a spin-off from the University of Ljubljana, Genialis is now headquartered in Boston but maintains strong ties to Slovenia, employing 22 local experts. Initially focused on tools for biologists, the firm shifted towards personalised medicine six years ago, now offering diagnostic insights that predict whether a patient is likely to respond to a specific cancer drug or treatment.

Genialis’ proprietary “Supermodel” analyses RNA data from a diverse range of patients using machine learning, boosting the likelihood of treatment success from 20–30% to as high as 65% when paired with their biomarkers. While the software is already used in research settings, the ultimate goal is to integrate it into routine clinical care. Despite the promise, challenges remain, including securing quality data and investment. Co-founders Rafael Rosengarten and Miha Štajdohar remain optimistic, believing AI-powered precision medicine is the future of effective cancer therapy.

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