E-commerce and trade

Chinese hedge funds boost AI for competitive edge

China’s hedge fund industry is undergoing a transformative shift, spurred by High-Flyer’s integration of AI in its trading strategies. The multi-billion-dollar fund not only uses AI to enhance its portfolio but also created DeepSeek, a game-changing LLM that has disrupted the dominance of Western AI firms like those in Silicon Valley.

The breakthrough has ignited an AI arms race among Chinese asset managers, including firms like Baiont Quant, Wizard Quant, and Mingshi Investment Management, as they rush to incorporate AI into their investment workflows.

AI-powered trading has gained momentum, with many hedge funds now using AI to process market data and generate trading signals based on investor risk profiles. As competition for “alpha” (outperformance) intensifies, the demand for AI talent is surging.

Companies like Wizard Quant and Mingshi are actively recruiting top AI engineers, and even mutual funds, such as China Merchants Fund, have adopted DeepSeek to boost their efficiency. The open-source model has democratised access to AI, lowering the entry barrier for smaller Chinese funds, which had previously been unable to compete with their Western counterparts due to high costs.

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The role of AI in precision farming for wine production

AI is making its mark in the wine industry, with vineyards across California adopting cutting-edge technology to optimise crop production.

One notable example is Napa Valley farmer Tom Gamble, who has integrated an autonomous tractor equipped with AI sensors to map his vineyard.

These AI-powered machines gather data that allows farmers to make more informed decisions about water use, fertilizer application, and pest control, improving efficiency and sustainability.

AI’s influence extends beyond tractors. Companies like John Deere in the US have developed AI-driven technologies that help vineyard managers apply materials more precisely, reducing waste and environmental impact.

Smart irrigation systems, for example, can monitor water use and even shut off in case of leaks, making vineyards more water-efficient.

Despite concerns about the cost of adopting such technology, particularly for smaller, family-run vineyards, AI offers a way to streamline operations and adapt to changing environmental conditions.

While AI is enhancing wine production, it also aids in managing crop health and predicting yields. By analysing images and soil data, AI systems can detect early signs of disease or nutrient deficiencies, helping farmers take preventive action before issues escalate.

However, this technology allows vineyards to make smarter decisions, ultimately improving the quality and consistency of their wine production.

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Central bank of Russia opens path for wealthy to invest in crypto

Russia’s central bank has proposed a regulatory framework that would permit wealthy individuals to invest in cryptocurrencies, under a new ‘experimental’ regime for ‘specially qualified’ investors.

This initiative marks a significant shift in Russia’s approach to crypto assets, as the country has slowly relaxed its strong opposition to cryptocurrencies.

The central bank’s proposal would allow individuals whose investments exceed 100 million roubles or whose annual income surpasses 50 million roubles to participate in crypto trading.

While the proposal seeks to increase transparency within the cryptocurrency market, it also highlights the risks involved, reminding investors of the potential for financial losses.

The new regime would last for three years, providing a controlled environment for crypto investments. However, cryptocurrencies will still be banned as a form of payment in Russia, maintaining a cautious approach to their full integration into the economy.

This proposal follows a broader trend of easing cryptocurrency restrictions, particularly after a law was passed last year allowing businesses to use crypto in international trade.

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AI demand drives record power sector deals

The US power industry is experiencing a surge in mergers and acquisitions (M&A) as record demand for electricity, particularly from AI-driven data centres, fuels heightened interest in power generation assets.

Industry experts predict 2025 will be a bumper year for such deals, with assets in high demand due to massive projections for future consumption. Notable transactions, such as Constellation Energy’s $16.4 billion acquisition of Calpine, highlight the sector’s boom in early 2025.

Private equity firms, pension funds, and other institutional investors are rapidly deploying capital into the power sector, with over $330 billion in capital waiting to be invested in infrastructure.

Many of these firms are targeting not only operational companies but also firms that manufacture energy equipment, positioning themselves to profit from the ongoing expansion of the power grid to meet AI-related demand.

While the US M&A frenzy contrasts with a broader slowdown in the market, the momentum in the power sector is expected to continue.

Challenges such as material shortages and regulatory uncertainties, particularly surrounding tariffs on essential materials, may impact future projects.

However, the increasing value of power infrastructure makes these challenges more manageable for investors keen to tap into the growing market.

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Intel appoints new CEO to compete in AI chip market

Intel has appointed tech industry veteran Lip-Bu Tan as its chief executive, aiming to revitalise the struggling chipmaker as it falls behind in the AI race.

Tan, set to take over next week, told employees that overcoming Intel’s challenges would not be easy but reaffirmed his commitment to an engineering-first approach.

Following the announcement, Intel’s shares surged by more than 10 per cent in after-market trading.

Once a dominant force in the semiconductor industry, Intel has been outpaced by Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics, which lead in made-to-order chip production.

It also lags behind Nvidia, which has emerged as the top AI chip provider. Tan replaces Pat Gelsinger, who was ousted last year after the board lost confidence in his turnaround efforts, which included cutting 15,000 jobs and delaying chipmaking projects.

Tan, previously head of Cadence Design Systems, pledged to restore Intel’s reputation by taking calculated risks to outmanoeuvre competitors.

He intends to continue the company’s plan to manufacture chips for other firms, directly challenging TSMC. However, analysts remain cautious, questioning whether Intel will split its foundry and chip design businesses or prove its ability to deliver cutting-edge technology.

Intel also faces a growing battle in AI, where Nvidia dominates the data centre chip market. Analysts warn that without a compelling AI strategy, Intel could struggle to regain investor confidence.

Tan, however, remains optimistic, vowing to transform Intel into a world-class chipmaker while ensuring customer satisfaction.

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Singapore fraud case involves $390 million in transactions

Singapore prosecutors revealed on Thursday that a fraud case involving local firms accused of illegally supplying US servers to Malaysia involves transactions worth $390 million.

Three men—Singaporeans Aaron Woon and Alan Wei, along with Chinese national Li Ming—have been charged with deceiving tech giants Dell and Super Micro by misrepresenting the servers’ final destination.

The case has been linked to Chinese AI firm DeepSeek, which is under US scrutiny over the potential use of banned Nvidia chips.

While Singapore authorities confirmed the servers may have contained Nvidia components, they did not specify whether these were the restricted high-end semiconductors subject to US export controls.

Singapore’s Law and Home Affairs Minister K Shanmugam declined to comment on the alleged connection.

Prosecutors claim Wei paid himself tens of millions in dividends, while Woon received a multimillion-dollar bonus. Singaporean authorities are investigating a wider network of 22 individuals and companies suspected of similar fraudulent practices, with six additional arrests made.

The accused are set to reappear in court on May 2, while Malaysian authorities are also probing potential legal violations.

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India plans five-year limit on satellite spectrum

India’s telecom regulator plans to recommend allocating satellite broadband spectrum for around five years to assess market adoption, a move that goes against Elon Musk’s Starlink, which has been pushing for a 20-year permit.

The Telecom Regulatory Authority of India (TRAI) is finalising key recommendations on the licensing timeframe and pricing, opting for a shorter period to monitor industry growth before making long-term commitments.

A government official confirmed TRAI is inclined towards a five-year limit, allowing regulators to review the market and revise spectrum pricing as needed.

However, this decision could impact Starlink’s long-term plans in India, as its deals with Reliance and Airtel are still pending regulatory approvals. Meanwhile, industry forecasts suggest India’s satellite communication sector could expand over tenfold, reaching $25 billion by 2028.

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Zhipu AI raises 500 million yuan amid rising competition

Chinese startup Zhipu AI has secured 500 million yuan (£54.8 million) in funding from the state-owned Huafa Group, following a separate 1 billion yuan capital raise earlier this month.

Huafa Group, a government-backed conglomerate based in Zhuhai, Guangdong province, announced its investment as Chinese cities compete to support AI firms, a sector seen as critical in Beijing’s technological rivalry with the US.

The funding comes amid increasing competition in China’s AI industry, particularly with Hangzhou-backed DeepSeek, whose large language models have gained attention for their cost-effectiveness and performance against Western alternatives.

Zhipu AI, established in 2019 and recognised as one of China’s ‘AI tigers,’ has received investments from major tech firms including Tencent, Meituan, and Xiaomi. The startup was valued at 20 billion yuan (£2.2 billion) in a funding round last July, according to business registration platform Qichacha.

With the new funding, Zhipu AI aims to enhance technological innovation and further develop its GLM foundation model.

However, the company faces challenges on the international stage, having been added to the US Commerce Department’s export control list in January, restricting its access to American components.

Despite these hurdles, China continues to bolster its AI sector as it seeks to establish a leading position in global artificial intelligence development.

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Emmer pushes for pro-stablecoin laws and rejects CBDCs

US Representative Tom Emmer called for stronger pro-stablecoin laws during a House Financial Services Committee hearing on 11 March, while criticising central bank digital currencies (CBDCs) as a threat to American values. Emmer, who reintroduced the CBDC Anti-Surveillance State Act on 6 March, warned that CBDC technology could undermine American freedoms and privacy. The proposed bill seeks to block the creation of a US CBDC without Congress’s explicit approval, addressing concerns over financial surveillance.

Emmer argued that CBDCs could disrupt American financial independence, citing the risks of government control over citizens’ transactions. He also highlighted the privacy concerns surrounding digital currencies issued by central banks, stating that stablecoins offer a better alternative by promoting financial privacy and innovation without compromising personal freedoms.

At the same hearing, Paxos CEO Charles Cascarilla called for consistent stablecoin regulations across global jurisdictions to prevent regulatory loopholes. Cascarilla stressed the importance of clear, reciprocal rules that would level the playing field for stablecoin issuers in the US and globally, fostering a competitive market that benefits both consumers and investors.

Amidst growing support for pro-crypto policies, Emmer reiterated that the US must prioritise pro-stablecoin legislation while rejecting CBDCs to safeguard privacy and financial autonomy. The stance aligns with broader concerns raised by the growing influence of cryptocurrency companies in US politics, which could pose challenges to regulatory stability.

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AI will enhance, not replace, programmers, says IBM CEO

At the SXSW conference, IBM CEO Arvind Krishna addressed two key topics: global trade and the role of artificial intelligence in programming. Krishna expressed his belief that global trade remains vital for economic growth, citing the historical correlation between increased trade and GDP growth.

He also argued that embracing international talent through policies supporting immigration would benefit the US, allowing it to remain competitive in the global market.

Turning to AI, Krishna disagreed with predictions that AI would soon take over coding entirely. Instead, he believes AI will increase programmer productivity by assisting with simpler tasks, allowing developers to focus on more complex problems.

He argued that AI could boost the output of existing teams, helping companies gain market share by enabling faster production and more efficient workflows.

While AI may revolutionise some aspects of work, Krishna maintained that it won’t replace human workers entirely. Drawing a parallel with the initial fears surrounding calculators and Photoshop, he described AI as a tool that enhances rather than replaces human expertise.

His comments come amid growing discussions about the future role of AI in various industries, including programming. Krishna also acknowledged the ongoing challenges in AI, such as intellectual property concerns and the need for energy-efficient models.

Krishna further stated that while AI would become cheaper and more accessible, it would not be the key to groundbreaking scientific discoveries. Instead, he emphasised the potential of quantum computing to accelerate innovation, with IBM’s ongoing investments in the technology.

His remarks highlighted both the promise and the limitations of AI, positioning it as an important tool in advancing industries but not a solution to all challenges.

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