Economic Archives | Page 41 of 704 | Digital Watch Observatory

Horizon Worlds remains active as Meta reconsiders VR plans

Meta has reversed its earlier decision to discontinue virtual reality support for Horizon Worlds, allowing the platform to remain available on VR headsets despite previous plans to prioritise mobile and web access.

The decision follows an internal reassessment of user engagement trends, which indicate limited adoption of VR-based social platforms.

While Horizon Worlds was once positioned as central to the company’s metaverse ambitions, demand has remained relatively low, raising questions about the long-term viability of immersive social environments.

Financial pressures also continue to shape strategy.

Meta’s Reality Labs division has recorded substantial losses since 2021, reflecting high investment in virtual and augmented reality technologies without corresponding commercial returns.

Industry data further suggests declining headset sales, reinforcing uncertainty around VR as a mainstream consumer platform.

In contrast, mobile usage of Horizon Worlds is growing faster. Increasing downloads point to broader accessibility and improved product-market alignment, though revenue generation remains limited.

As a result, Meta is prioritising mobile development instead of fully abandoning VR, maintaining a dual approach while seeking more sustainable engagement models.

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TikTok disinformation study raises concerns over AI content and EU regulation

A new study by Science Feedback indicates that TikTok has a higher proportion of misleading content than other major platforms operating in the EU.

The analysis covered France, Poland, Slovakia and Spain, assessing content across multiple thematic areas including health, politics and climate.

Findings suggest that approximately one in four posts on TikTok contained misleading elements, placing the platform ahead of competitors such as Facebook, YouTube and X. Health-related narratives were the most prominent category, reflecting broader patterns observed across digital ecosystems.

Researchers describe disinformation as a persistent feature embedded within platform structures instead of an isolated occurrence.

The study also highlights a growing presence of AI-generated content, particularly in video formats, where synthetic material accounted for a significant share of misleading posts. Despite existing platform policies, most identified content lacked clear labelling.

The regulatory context remains under development.

While the Digital Services Act integrates voluntary commitments from the EU disinformation code, it does not impose mandatory requirements for identifying AI-generated material.

Ongoing debates therefore focus on transparency, accountability and the evolving responsibilities of digital platforms within the European information environment.

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Bitcoin moves closer to quantum resistance with BIP-360

BTQ Technologies has deployed Bitcoin Improvement Proposal BIP-360 on its Bitcoin Quantum Testnet v0.3.0, marking the first live test of the proposal. The upgrade introduces a quantum-resistant transaction model, Pay-to-Merkle-Root, designed to strengthen Bitcoin’s long-term security.

BIP-360 focuses on mitigating a vulnerability linked to Taproot’s key-path spending mechanism, which can expose public keys on-chain. Such exposure may become a risk if future quantum computers are capable of exploiting cryptographic weaknesses using advanced algorithms.

The testnet adds new consensus rules, post-quantum signatures, and full transaction lifecycle testing. Faster one-minute block times and adjusted fee structures have been introduced to accommodate larger and more complex signatures.

Growing global attention on quantum threats adds urgency to the development. US, EU, and Canadian authorities are setting timelines for post-quantum cryptography to protect future system security.

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EU scrutiny intensifies over Broadcom VMware licensing dispute

Broadcom is facing increased regulatory pressure in the EU following a formal antitrust complaint concerning changes to VMware licensing practices.

The complaint highlights growing tensions between large technology providers and European cloud infrastructure firms.

The filing, submitted by Cloud Infrastructure Services Providers in Europe, raises concerns that revised licensing models could significantly alter market dynamics.

European providers argue that the changes may limit flexibility, increase costs, and affect their ability to compete effectively in the cloud services sector.

At the centre of the dispute lies the broader issue of market concentration and control over critical digital infrastructure.

Industry stakeholders suggest that restrictive licensing conditions could reshape access to essential virtualisation technologies, which underpin a wide range of cloud and enterprise services across the EU.

Regulatory attention is expected to focus on whether such practices align with the EU competition rules, particularly regarding fair access and market neutrality.

The case emerges at a time when European policymakers are intensifying oversight of dominant technology firms and seeking to strengthen digital sovereignty across strategic sectors.

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Malaysia tightens rules on data centres

Malaysia has quietly restricted new data centre approvals to projects linked to AI, signalling a strategic shift in its digital economy. Authorities confirmed that non-AI development has been halted for nearly 2 years.

The policy reflects mounting pressure on energy and water resources as demand for data centres accelerates. Officials aim to ensure infrastructure supports high-value AI projects rather than lower-impact investments.

Rapid growth has positioned Malaysia as a key regional hub, attracting major global technology firms. Concerns remain over whether the country risks hosting infrastructure without building local innovation capacity.

Leaders say future efforts will focus on balancing investment with domestic benefits and energy sustainability. Plans include expanding power supply and strengthening national AI capabilities to secure long term gains.

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UK drops AI copyright opt-out plan amid growing industry divide

The UK Government has abandoned its previous preference for an AI copyright opt-out model, signalling a shift in policy following strong opposition from creative industries.

Ministers now acknowledge that there is no clear consensus on how AI developers should access copyrighted material.

Concerns from writers, artists and rights holders focused on the use of their work in training AI systems without permission.

Liz Kendall confirmed that extensive consultation exposed significant disagreement, prompting the government to step back from its earlier position that would have allowed the use of copyrighted content unless creators opted out.

A joint report from the Department for Science, Innovation and Technology and the Department for Culture, Media and Sport states that further evidence is required before any legislative change.

Policymakers in the UK will assess how copyright frameworks influence AI development, while also examining international regulation, licensing models and ongoing legal disputes.

Government strategy now centres on balancing innovation with fair compensation.

Officials emphasise that creators must retain control over how their work is used, while AI developers require access to high-quality data to remain competitive. Potential measures include labelling AI-generated content to reduce risks linked to disinformation and deepfakes.

No timeline has been set for reform, reflecting the complexity of aligning economic growth with intellectual property protection.

The debate unfolds alongside broader ambitions outlined by Rachel Reeves, who has identified AI as a central driver of future economic expansion, with the UK aiming to lead adoption across the G7.

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Amazon upgrades Alexa with AI features

Amazon is rolling out an AI upgrade to its Alexa assistant, aiming to make interactions more conversational and responsive. The new version is designed to follow the context and respond more naturally.

The update comes as Amazon seeks to compete with advanced AI chatbots that have gained popularity in recent years. Critics have argued that smart speakers have fallen behind newer AI tools.

Users in the UK are expected to notice more personalised and proactive responses from the upgraded assistant. This will be based on user and customer personal data. The service will be included with Prime subscriptions or offered as a standalone monthly option.

Analysts say the update could help Amazon gather even more user data and improve engagement by picking up on customers’ habits through conversations. However, questions remain about whether the changes will drive revenue or revive interest in smart speakers.

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AI safety push sees Anthropic and OpenAI recruit explosives specialists

Anthropic and OpenAI are recruiting chemical and explosives experts to strengthen safeguards for their AI systems, reflecting growing concern about the potential misuse of advanced models.

Anthropic is seeking a policy specialist to design and monitor guardrails governing how its systems respond to prompts involving chemical weapons and explosives. The role includes assessing high-risk scenarios and responding to potential escalation signals in real time.

OpenAI is expanding its Preparedness team, hiring researchers and a threat modeller to identify and forecast risks linked to frontier AI systems. The positions focus on evaluating catastrophic risks and aligning technical, policy, and governance responses.

The recruitment drive comes amid heightened scrutiny of AI safety and national security implications. Anthropic is currently challenging a US government designation that labels it a supply-chain risk, while tensions have emerged over restrictions on the military use of AI systems.

At the same time, OpenAI has secured agreements to deploy its technology in classified environments under defined constraints. The parallel developments highlight how AI firms are balancing commercial expansion with increasing pressure to implement robust safety controls.

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Data centres drive LG’s integrated AI infrastructure push

AI infrastructure is becoming a central battleground for growth, with LG Group accelerating its push into AI data centres and energy storage systems under its ‘One LG’ strategy.

The initiative brings together key affiliates to deliver integrated solutions for AI data centres. LG Electronics provides cooling systems, LG Energy Solution handles power infrastructure, including ESS and UPS, while LG Uplus and LG CNS oversee design, construction, and operations.

The strategy comes as global demand for AI data centres surges, driven by energy-intensive workloads and rising electricity constraints. Expanding storage capacity has become critical, with the US expected to add over 24 gigawatts of energy storage capacity in 2026 alone.

LG Electronics is focusing on advanced cooling technologies, including large air-cooled chillers and liquid-cooling systems, to manage the intense heat generated by GPU-intensive AI workloads. The company has also expanded into immersion cooling through partnerships, aiming to achieve efficiency gains in next-generation facilities.

Meanwhile, LG Energy Solution is strengthening its role in power infrastructure, scaling ESS production across North America, and securing major contracts. Through integrated battery and software solutions, the company is positioning itself to meet growing demand for stable, high-capacity energy systems supporting AI operations.

On the networking side, LG Uplus is developing low-latency infrastructure and AI-driven data centre management systems to optimise performance and energy use in real time. Together, these efforts highlight LG’s ambition to become a full-stack provider in the rapidly expanding AI data centre ecosystem.

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NVIDIA Isaac powers generalist specialist robots at scale

A new class of robots is emerging, combining broad adaptability with task-specific precision as developers move toward generalist specialist systems. Within this shift, NVIDIA Isaac is enabling integrated workflows that connect data generation, simulation, training, and deployment across robotics pipelines.

NVIDIA Isaac unifies robotics development across these stages, integrating cloud-to-robot workflows that allow developers to build, test, and scale systems more efficiently across both real and simulated environments.

A key driver is the growing reliance on synthetic data, which allows developers to simulate rare or hazardous scenarios that are difficult to capture in the real world. NVIDIA Isaac supports this through tools such as Omniverse-based simulation and teleoperation pipelines, helping convert real-world signals into scalable training datasets and accelerating development cycles.

The platform also enables advanced robot training using reasoning vision-language-action models, which allow machines to perceive, interpret, and act across complex environments. With frameworks like Isaac Lab and integrated physics engines, NVIDIA Isaac enables robots to train across thousands of parallel simulations, significantly reducing time, cost, and risk compared to real-world training.

Once trained, NVIDIA Isaac supports deployment across edge AI systems, including the Jetson platform, while maintaining consistency between simulation and real-world performance. Combined with modular workflows and open frameworks, the platform is positioning itself as a core foundation for scalable, next-generation robotics.

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