E-commerce and trade

Siemens buys Dotmatics to boost AI drug research

Siemens announced on Wednesday its acquisition of US software firm Dotmatics for $5.1 billion, aiming to enhance its AI capabilities for drug discovery.

The German company described the deal as complementary to its expansion into Life Sciences, positioning itself in a market increasingly reliant on digital transformation to meet growing medical needs.

Siemens expects Dotmatics to generate $100 million annually in the mid-term, rising to $500 million in the long run, and said the acquisition would be immediately profitable. The transaction is set to be completed in the first half of next year.

Founded in 2005, Dotmatics employs 800 people and specialises in AI-driven R&D software designed to accelerate drug research. This move follows Siemens’ recent $10 billion purchase of another AI-powered US software firm, Altair Engineering.

As Siemens’ industrial software faces slowing demand, its digital division has been driving revenue growth instead of its traditional factory automation products. The company, Germany’s second-largest by market value, continues expanding its software portfolio to capitalise on AI-driven innovations.

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Are digital taxes the new frontline in global trade warfare?

While President Trump’s tariffs on goods dominate headlines, a more consequential battle is brewing over digital services. US tech giants like Meta, Google, and Amazon wield unparalleled global dominance in this sector.

In just-in-time analysis, Jovan Kurbalija argues that Trump’s fixation on traditional trade levers (steel, cars) overlooks a critical vulnerability for the United States: the use of digital services taxes (DSTs) and regulatory pressure by the EU and other trading partners to counterbalance new US tariff.

The collapse of OECD-led multilateral tax negotiations in 2024 has triggered a resurgence of unilateral DSTs, from Canada’s retroactive levy to India’s expanded ‘equalization levy’ and revived EU proposals for bloc-wide digital taxes.

Kurbalija analyses how digital taxation redefines trade diplomacy, with implications ranging from recalibrated leverage (host nations exploiting US tech dependence) to governance gaps (WTO rules ill-equipped for digital disputes). It poses new challenges for digital diplomacy, AI negotiations, and internet governance.

He warns that failure to address this ‘invisible trade war’ could escalate tit-for-tat measures, jeopardizing both physical goods trade and the digital economy. The rise of data and sovereignty will be inevitable.

Ultimately, the piece underscores a paradigm shift: in the 21st-century economy, algorithms, and data flows are as strategically vital as steel beams—and more impactful for economic well-being and global prosperity.

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Retail stocks slump after tariff shock

Retail giants are facing sharp declines in after-hours trading as new tariffs from the US on imports from China, the European Union, and Vietnam begin to rattle markets. Walmart and Amazon both saw their shares fall, with Nike also heavily impacted due to its dependence on Chinese manufacturing.

Walmart’s drop of over 4% reflects its heavy reliance on Chinese imports, with roughly 70% of its merchandise tied to the country. Amazon, similarly exposed through its third-party sellers, dipped close to 5% amid fears that rising costs will force sellers to raise prices, dampening consumer demand. These developments could severely affect the upcoming holiday shopping season.

Nike, meanwhile, saw shares fall by more than 6% as news emerged that many of its products, including popular sneakers, are produced in China and Vietnam. Although the company has been diversifying production to Vietnam, the move offers little relief now, as Vietnam faces an even steeper 46% tariff. The new policies may force widespread price hikes, putting further pressure on consumers and the broader retail sector.

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Chinese tech firm Honor bets big on AI devices

Chinese smartphone maker Honor has unveiled a $10 billion investment plan aimed at advancing AI technologies across its product ecosystem. The announcement was made by CEO James Li at the Mobile World Congress in Barcelona, where he outlined the company’s ambition to evolve beyond smartphones and expand into AI-powered PCs, tablets, and wearables.

The major funding initiative comes as Honor prepares for a public listing, following a shareholder restructuring completed in December. While a date for the IPO has yet to be confirmed, the company appears to be positioning itself as a key player in China’s AI race, spurred by growing domestic interest in large language models like those developed by DeepSeek.

Despite slipping to fourth place in China’s smartphone market last year, Honor continues to receive strong backing from the Shenzhen local government. Support has included R&D funding, tax incentives, and assistance with international expansion. The company’s strategic pivot to AI reflects broader trends in China’s tech sector, as firms seek to integrate smart features into a wider range of consumer devices.

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OpenAI CEO says India leads in AI creativity

Sam Altman sparked interest among Indian users on X after praising the country’s rapid AI adoption and sharing an AI-generated image of himself playing cricket. In his 2 April post, the OpenAI CEO called India’s AI creativity an ‘explosion,’ claiming the country was outpacing the world in adoption rates.

Users questioned why Altman singled out India, with some turning to AI chatbots like Perplexity and Grok for verification. His comments followed a February visit to India, where he met IT Minister Ashwini Vaishnaw and highlighted India as OpenAI’s second-largest market.

Altman’s remarks also came shortly after OpenAI’s GPT-4o update, which enhanced AI-generated images and illustrations. To showcase this, he shared an anime-style image of himself as a cricket player, sporting a Team India jersey.

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Emergence AI launches platform that builds AI with AI

The startup Emergence AI has launched a new no-code platform that allows users to generate custom AI agents simply by describing tasks in natural language.

These agents can then autonomously create other, more specialised agents to complete complex work, in real time and without requiring human coding expertise.

The system, which the company calls a breakthrough in ‘recursive intelligence’, checks its registry of agents for task compatibility. If existing agents aren’t suitable, new ones are created instantly to handle the job.

These can also anticipate related tasks, boosting automation across enterprise operations. Emergence AI claims the platform can seamlessly orchestrate collaboration among multiple agents, bringing a new level of efficiency to data transformation, migration, analytics, and even code generation and verification.

Users can select from a range of major large language models including OpenAI’s GPT-4.5, Anthropic’s Claude, and Meta’s Llama. Enterprises can also integrate their own models.

With safety and oversight in mind, Emergence AI has built in access controls, performance verification tools, and human review processes to ensure responsible deployment. Pricing has yet to be disclosed, but interested parties are encouraged to contact the firm directly.

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The Financial Freedom Act could allow Americans to invest retirement funds in crypto

US Senator Tommy Tuberville is set to reintroduce the Financial Freedom Act. The bill would enable Americans to invest their retirement funds in cryptocurrencies.

Tuberville emphasised that the US is a ‘country of freedom.’ He criticised the previous administration for imposing strict regulations on investments.

He also praised President Trump, calling him the ‘Crypto President.’ Tuberville noted that the Biden administration had been reluctant to support crypto.

The Financial Freedom Act, initially introduced in 2022, seeks to reverse Department of Labor (DOL) guidance. The guidance limits investment options for self-directed 401(k) account holders.

Tuberville has argued that excessive regulation hampers financial growth and restricts personal liberty. The bill would allow more freedom for individuals to select the types of investments they want in their retirement funds, including cryptocurrencies.

Senator Cynthia Lummis has championed the idea of adding cryptocurrencies to retirement portfolios. Ivory Johnson, a financial planner, supports this, recommending that crypto make up 2% to 8% of a portfolio.

However, financial experts like Amy Arnott warn that adding crypto could increase risks. It might show especially if the market suffers a downturn during retirement.

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Japan targets Apple and Google with new law

The Japan Fair Trade Commission (JFTC) announced on Monday that it has designated Apple Inc., its Japanese subsidiary iTunes K.K., and Google LLC under the new smartphone software competition promotion law.

The law targets dominant IT companies in the smartphone app market, regulating areas like smartphone operating systems, app stores, web browsing software, and search engines.

The primary aim of the law is to prevent these giants from blocking market entry for other companies or giving preferential treatment to their own services. The law will take full effect in December, with the designated companies required to correct any problematic practices.

Apple will be required to allow other companies into the App Store business instead of monopolising it, fostering price competition. Google will be prohibited from displaying its services in search results instead of favouring them.

In response, both companies expressed concerns, with Apple questioning the impact on user experience and Google vowing to engage in discussions to ensure fairness.

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Nokia expands 5G partnership with Airtel

Nokia has signed a multi-year deal with Bharti Airtel to expand their core network collaboration instead of maintaining a limited partnership, aiming to enhance 5G service delivery.

The move will integrate 5G and 4G technologies into a unified server setup instead of running them separately, while also helping Airtel grow its 4G/5G customer base.

Nokia’s Fixed Wireless Access (FWA) will provide additional solutions for home broadband and enterprise-critical applications instead of relying solely on traditional infrastructure.

The rollout will cover network automation across most Airtel service regions in India, helping the telecom giant optimise its hardware footprint and reduce costs per bit by using appliance-based Packet Core gateways.

Airtel CTO Randeep Sekhon highlighted that Nokia’s Packet Core deployment will improve network quality and reliability instead of allowing congestion to impact customers.

Nokia’s president of cloud and network services, Raghav Sahgal, emphasised that this collaboration strengthens Airtel’s 5G standalone (SA) readiness, reinforcing Nokia’s leadership in core network solutions in India and globally.

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OpenAI is now valued at $300 billion after new funding

OpenAI has secured a $40 billion funding deal from SoftBank, pushing its valuation to $300 billion instead of staying below that mark, making it the third most valuable private company in the world.

It now ranks behind Elon Musk’s SpaceX, valued at around $350 billion, instead of taking the top spot, and TikTok’s parent company, ByteDance, which stands at approximately $315 billion.

The valuation surpasses major firms like Chevron, Salesforce, McDonald’s, Pepsico, and Samsung instead of lagging behind them.

Funding is structured in two phases, beginning with an initial $10 billion investment. The remaining $30 billion is expected to be provided by the end of 2025, as reported by the New York Times.

OpenAI stated that this capital will allow the company to advance AI research instead of stagnating and expand its infrastructure with more powerful tools.

Founded in 2015 as a non-profit, OpenAI later shifted to a capped-profit model to attract investment instead of relying solely on donations while continuing its work in AI development.

Despite facing operational challenges and legal disputes, including a high-profile lawsuit from Musk opposing its transition to a profit-driven model, OpenAI has continued to grow.

Its ChatGPT platform now boasts 500 million weekly users instead of seeing a decline. In February, investors, including Musk, sought control of the firm, but CEO Sam Altman firmly rejected the proposal, reaffirming that ‘OpenAI is not for sale’ instead of giving in to external pressure.

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