E-commerce and trade

Google’s Wiz acquisition propels Israel’s tech sector to new heights

Israel’s high-tech sector surged into 2025 with remarkable momentum, instead of continuing the two-year slump in funding.

According to new figures from Startup Nation Central, private Israeli tech firms raised $3.2 billion through 185 deals in the first quarter, rather than declining as in previous periods. This marked a 12% rise from the previous quarter and a 14% increase year on year.

The most striking figure came from mergers and acquisitions, which reached a record-breaking $35.9 billion across 38 deals.

It was driven by Google’s $32 billion acquisition of cybersecurity firm Wiz—the biggest tech exit in Israeli history and one of the largest globally, instead of a more modest transaction typical of previous years.

Even excluding the Wiz acquisition, the M&A volume still hit $3.9 billion—its highest since the third quarter of 2023. Instead of reflecting a single outlier, the strong figures suggest a broader resurgence in investor confidence and corporate activity.

It signals that global interest in Israel’s innovation sector is gaining strength again, instead of continuing to wane as seen over the past two years.

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GenAI comes to Spotify ads in US and Canada

Spotify has announced a suite of new advertising tools and features, including generative AI capabilities, at its recent Spotify Advance event in New York.

Designed to simplify ad creation and targeting, the initiative, branded as Spotify GenAI Ads, aims to help advertisers generate scripts and voiceovers at no extra cost.

Advertisers can also collaborate with Spotify’s in-house creative agencies to develop campaigns, while upgraded tools on the Spotify Ad Exchange (SAX) offer access to logged-in users through real-time auctions.

Integration with platforms such as Google Display & Video 360, The Trade Desk, Magnite, and Yahoo DSP further enhances reach and targeting options.

A new Spotify Ads Manager tool is also being rolled out in the US and Canada, providing advanced audience segmentation and performance tracking for tailored campaigns. These innovations reflect Spotify’s growing focus on personalisation and automation in digital advertising.

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GPT-4.5 outperforms humans in updated Turing Test

Two leading AI systems, OpenAI’s GPT-4.5 and Meta’s Llama-3.1, have passed a key milestone by outperforming humans in a modern version of the Turing Test.

The experiment, conducted by researchers at the University of California San Diego, found that GPT-4.5 was mistaken for a human 73% of the time, surpassing the human identification rate. Meta’s Llama-3.1 followed closely, with a 56% success rate.

The study used a three-party test where participants held simultaneous five-minute conversations with both a human and an AI, and then tried to determine which was which.

These trials were conducted across two independent groups: university undergraduates and prolific online workers. The results provide the first substantial evidence that AI can convincingly mimic human responses in spontaneous conversations.

Earlier language models such as ELIZA and GPT-4o were correctly identified as non-human in over 75% of cases.

The success of newer models in passing this benchmark points to how rapidly conversational AI is evolving, raising fresh questions about the ethical and societal implications of indistinguishable AI interactions.

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Track missing bags with Air India and Apple AirTags

Air India has launched a new partnership with Apple to enhance baggage tracking by integrating Apple’s AirTag technology into its existing systems.

The collaboration connects AirTag’s location-sharing capabilities with Air India’s mobile app and website, allowing passengers to track misplaced luggage more efficiently.

Travellers using Apple devices can generate a location link for their AirTag through the Find My app and submit it to Air India along with a lost baggage report.

Once shared, airline staff can view an interactive map of the item’s location, updated in real time, until the luggage is recovered or the tracking expires after seven days.

This move makes Air India the first Indian airline to adopt Apple’s ‘Share Item Location’ feature, joining a global group that includes British Airways, Lufthansa, and Virgin Atlantic.

The new system is compatible with iPhones, iPads, and Macs running the latest software versions, offering Indian users a smarter way to stay connected with their belongings throughout their journey.

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Taiwan warns of economic impact after US tariff decision

The United States has imposed a 32 per cent tariff on Taiwanese exports, with semiconductors notably exempt from the new trade restrictions.

Taiwan, a major supplier of advanced electronics, has strongly condemned the move, calling it unfair and harmful to economic ties. Nearly a quarter of Taiwan’s exports go directly to the United States, with electronic components and consumer devices making up a significant share.

President Donald Trump has previously criticised Taiwan’s dominance in the semiconductor industry and threatened tariffs on the sector. While chips remain untouched for now, industry experts warn that tariffs could still be introduced in the future.

Taiwan Semiconductor Manufacturing Company (TSMC) recently pledged a $100 billion investment in the US to expand its Arizona operations, a move praised by Trump. Other chipmakers, including South Korea’s Samsung and SK Hynix, are also being urged to increase their investments in American facilities.

Government officials and businesses in Taiwan are now working to mitigate the impact of the tariffs. President Lai Ching-te has signalled interest in expanding trade ties with the US, including potential purchases of natural gas.

The Taiwanese government has lodged a formal protest with Washington, arguing that the tariffs undermine economic cooperation. Analysts suggest that Taiwan may have underestimated Trump’s hard-line trade policies, expecting more favourable treatment after recent investment commitments.

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Arthur Hayes predicts tariffs will boost Bitcoin’s price

Arthur Hayes, the co-founder of BitMEX, believes that the tariffs introduced by US President Donald Trump could benefit Bitcoin to benefit. Bitcoin sees this impact occurring in the medium term.

He argues that while the tariffs may disrupt the global economy, the resulting financial imbalances would ultimately be corrected. The correction would come with printed money, which bodes well for Bitcoin’s price.

Hayes made his comments following the announcement of a 10% tariff on all countries, with certain nations like China facing even higher rates.

According to Hayes, these tariffs will weaken the US Dollar Index (DXY), as foreign investors sell off US stocks and repatriate their funds. The situation could push investors towards Bitcoin and other safe-haven assets like gold.

Hayes also predicts that tariffs on China could lead to a devaluation of the yuan. Furthermore, Hayes suggests that the Federal Reserve may need to implement easing measures. It could include rate cuts in response to the economic impacts of the tariffs.

Hayes’ stance aligns with Jeff Park of Bitwise Invest. He also believes that Trump’s tariffs could ultimately send Bitcoin’s price soaring.

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Deutsche Telekom expands partnership with Google Cloud

Deutsche Telekom has strengthened its collaboration with Google, moving more of its services to the Google Cloud platform as part of its transformation into an ‘AI-first company.’ The expanded partnership aims to improve the agility and efficiency of Deutsche Telekom’s operations through AI-driven solutions.

Stefan Schloter, Chief Infrastructure Officer for Europe at Deutsche Telekom, highlighted how leveraging data and AI will enhance digital solutions across business entities, software engineering, and customer interfaces.

The MyMagenta app, for example, will integrate Google’s AI-powered Gemini assistant, further improving customer experience.

Google Cloud will also serve as the technical foundation of Deutsche Telekom’s new AI platform, the ‘One Data Ecosystem.’ However, this platform consolidates data systems and enhances data processing speed while ensuring compliance with privacy and data-sharing regulations.

Marianne Janik, Vice President of Google Cloud for Northern Europe, expressed excitement about the partnership, noting how cloud technology is pivotal for communications providers in driving innovation, flexibility, and growth for enhanced user experiences.

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Microsoft rethinks AI data centre strategy amid market shifts

Microsoft has reportedly scaled back or delayed several major data centre projects, just three months after announcing plans to invest $80 billion in AI infrastructure through the current fiscal year.

According to Bloomberg, the company has paused developments in multiple locations, including Australia, Indonesia, the United Kingdom, and US states such as Illinois, North Dakota, and Wisconsin.

Instead of denying the report, Microsoft confirmed adjustments to its plans, citing the need for long-term flexibility. A spokesperson said the company continuously reviews future infrastructure needs to ensure alignment with growing AI demand, adding that the changes reflect Microsoft’s adaptable strategy.

The halted projects include negotiations for high-performance AI chip facilities in the UK and a site near Chicago, along with construction delays in Jakarta and Wisconsin.

These moves come amid growing scrutiny over whether the AI sector is entering a bubble, especially as emerging models challenge the assumption that vast computing power is always necessary for innovation.

Instead of sticking to high-cost development, Microsoft may be responding to a new trend: efficient, lower-cost AI models from Chinese firms that rival those of Western tech giants.

With AI development costs dropping and access expanding, Microsoft’s strategic pause could reflect a shift towards a more sustainable and agile future in AI infrastructure.

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India among few developing nations with strong AI investment

India and China were the only developing nations to attract notable private investment in AI in 2023, according to the UN’s Technology and Innovation Report 2025. Instead of the US simply leading the field, it dominated with $67 billion in AI investment, accounting for 70 per cent of the global total.

China followed with $7.8 billion, while India ranked tenth worldwide with $1.4 billion. Instead of being evenly distributed, access to AI infrastructure and research remains heavily concentrated in a handful of countries, mainly the US and China.

India’s rise in the AI space stems from policy-driven innovation and education rather than organic growth alone. It climbed to 36th place out of 170 on the UNCTAD Frontier Technologies Readiness Index in 2024, improving from 48th in 2022.

Instead of only focusing on economic size, the index measures readiness through ICT availability, skills, R&D, industrial capacity, and financing. India performed well in R&D and industrial capacity but fell behind in ICT access and skill development.

India has supported its AI ecosystem through collaboration between the government, academia, and the private sector. The country hosts a large developer base, around 13 million, and contributes actively to generative AI projects on platforms like GitHub.

Programmes such as the India AI Mission aim to boost AI education and innovation in smaller cities, instead of keeping progress limited to major urban centres. Institutes like IIT Hyderabad and IIT Kharagpur were named among the country’s key centres of AI excellence.

Still, India faces challenges in expanding its AI capabilities across all sectors. Instead of allowing AI to widen inequalities, the report urges investment in workforce reskilling and inclusion. While AI can boost productivity, it may also displace jobs unless paired with supportive policies.

The technology, if harnessed wisely, could create new industries and strengthen employment rather than replace it.

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Apple and Samsung brace for impact as US tariffs take effect

US President Donald Trump has announced new import tariffs that could significantly impact smartphone prices and the profit margins of leading manufacturers.

Apple and Samsung, which dominate United States smartphone sales, are particularly vulnerable due to their heavy reliance on production in China and Vietnam. Under the new tariff scheme, China faces a 34 per cent import levy, while Vietnam is subject to a 46 per cent fee.

Industry analysts warn that if the tariffs remain unchanged, consumers will likely see higher prices on smartphones and other electronic devices.

Ben Wood, chief analyst at CCS Insight, noted that Apple and Samsung may attempt to cushion some of the added costs, but this would put pressure on their profit margins.

Foxconn, Apple’s primary manufacturing partner, has been shifting production to India in an effort to reduce reliance on China. However, India is also affected by the tariffs, facing a 26 per cent reciprocal rate.

Samsung faces similar challenges, with limited options to offset the impact of the new tariffs. Even if the company moved all production back to South Korea, it would still be subject to a 25 per cent import duty.

The new tariff measures are expected to have broad implications for the consumer electronics industry, potentially reshaping global supply chains and pricing structures.

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