Economic Archives | Page 440 of 708 | Digital Watch Observatory

BMW to equip cars with Huawei HiCar system

BMW will integrate Huawei’s HiCar system into its locally produced models starting in 2026, strengthening its presence in the Chinese market.

The partnership will enable seamless connectivity between Huawei devices and BMW vehicles, enhancing smart driving applications through the Harmony operating system.

The German automaker emphasised its commitment to deeper collaboration with Chinese partners, aiming to integrate them more closely into its global innovation network.

By working with local suppliers, BMW seeks to foster long-term cooperation and technological advancement in one of the world’s largest automotive markets.

An approach that aligns with BMW’s broader strategy of leveraging local expertise to remain competitive in a fast-evolving automotive landscape.

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Infosys resolves cybersecurity lawsuits in the US

Indian IT services giant Infosys has settled lawsuits filed against its US subsidiary, Infosys McCamish Systems, for $17.5 million. The lawsuits stem from a cyber incident that occurred in November 2023, which resulted in the compromise of personal data. The company has agreed to pay the settlement into a fund that will resolve all claims related to the breach.

The breach, which involved unauthorised access and data exfiltration, affected up to 6.5 million individuals. Following the incident, Infosys McCamish in the US, in coordination with a third-party vendor, took steps to address the issue and limit the damage caused by the cyberattack.

This settlement marks a significant step for Infosys in resolving the ongoing legal issues stemming from the 2023 incident. The Indian company has worked to resolve the situation while continuing to bolster its cybersecurity measures to prevent future breaches.

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Europe’s tech giants push for sovereign fund

More than 90 European technology companies and lobby groups, including Airbus and Dassault Systèmes, have called on European Commission President Ursula von der Leyen to establish a sovereign infrastructure fund.

In an open letter dated 14 March, they emphasised the urgent need for Europe to strengthen its strategic autonomy in critical digital infrastructure, from AI frameworks to semiconductor manufacturing.

The letter warns that Europe’s reliance on foreign technology creates security risks and weakens economic growth. It highlights the importance of public investment, particularly in capital-intensive sectors like quantum computing and microchips. The signatories also suggest a ‘buy European’ policy in government procurement to boost demand and encourage local businesses to invest.

Prominent supporters of the initiative include French cloud provider OVH Cloud, the European Software Institute, and the German AI Association. The appeal also reached EU tech chief Henna Virkkunen, as Europe faces increasing pressure to compete with major US and Asian technology powers.

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Bank of Korea rejects Bitcoin for national reserves

South Korea has confirmed that Bitcoin will not be included in its foreign exchange reserves, citing concerns over volatility and regulatory standards. The Bank of Korea responded to a parliamentary inquiry by stating that Bitcoin does not meet the International Monetary Fund’s criteria for reserve assets, which require liquidity, stability, and an investment-grade credit rating.

Despite global discussions on national Bitcoin reserves, the central bank emphasised a cautious approach. It highlighted that major institutions, including the European Central Bank and the Swiss National Bank, share similar reservations. Officials also warned that cashing out Bitcoin could become costly if the market experiences instability.

Some South Korean lawmakers have urged the central bank to explore Bitcoin’s role in the financial system, but no formal discussions have taken place. Meanwhile, the country continues to ease crypto regulations, working on institutional trading reforms and considering exchange-traded funds to expand market opportunities.

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Turkey investigates Netflix, Disney, and Amazon for competition law violations

The Turkish Competition Board has opened an investigation into major subscription-based, on-demand video service providers, including Netflix, Disney, and Amazon. This decision follows a preliminary inquiry into whether these global streaming platforms have violated Turkey‘s competition laws.

The board is particularly focused on examining their business practices within the Turkish market and assessing whether any anti-competitive behaviour has occurred. The investigation highlights Turkey’s increasing scrutiny of digital platforms operating within its borders.

The inquiry comes at a time when subscription-based streaming services are growing rapidly in Turkey, with Netflix, Disney+, and Amazon Prime Video among the most popular platforms in the country. The Turkish Competition Board’s investigation aims to ensure that the market remains competitive and that no service provider is unfairly dominating the sector.

By looking into the practices of these major players, the board seeks to protect consumers and maintain a level playing field for all companies involved in the digital entertainment industry.

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UK teachers embrace AI for future education

Teachers in Stoke-on-Trent gathered for a full-day event to discuss the role of AI in education. Organised by the Good Future Foundation, the session saw more than 40 educators, including Stoke-on-Trent South MP Allison Gardner, explore how AI can enhance teaching and learning. Gardner emphasised the government’s belief that AI represents a ‘generational opportunity’ for education in the UK.

The event highlighted both the promise and the challenges of integrating AI into UK schools. Attendees shared ideas on using AI to improve communication, particularly with families who speak English as an additional language, and to streamline access to school resources through automated chatbots. While the potential benefits are clear, many teachers expressed concerns about the risks associated with new technology.

Daniel Emmerson, executive director of the Good Future Foundation, stressed the importance of supporting educators in understanding and implementing AI. He explained that AI can help prepare students for a future dominated by this technology. Meanwhile, schools like Belgrave St Bartholomew’s Academy are already leading the way in using AI to improve lessons and prepare students for the opportunities AI will bring.

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Thailand approves millions for data centres

Thailand has approved investments worth 90.9 billion baht ($2.7 billion) in data centres and cloud services, further boosting its growing tech sector. The newly approved projects include data centres by China’s Beijing Haoyang Cloud&Data Technology, Singapore-based Empyrion Digital, and Thailand’s GSA Data Center 02, according to the country’s investment board.

Among these, Beijing Haoyang plans to build a 300-megawatt data centre valued at 72.7 billion baht, while GSA Data Center 02 is investing 13.5 billion baht in a 35-megawatt facility.

The rapid rise of AI has fuelled demand for data infrastructure across Southeast Asia, making Thailand an attractive hub for investment. In January, TikTok’s parent company, Bytedance, announced plans to establish a data hosting service in Thailand worth 126.8 billion baht.

It follows significant investments from tech giants such as Google, which pledged $1 billion last year, and Amazon Web Services, which committed $5 billion over 15 years.

Microsoft has also revealed plans to open its first regional data centre in Thailand, reinforcing the country’s status as a growing digital hub in the region. With an increasing number of global technology firms choosing Thailand for data operations, the country is set to play a key role in Southeast Asia’s evolving digital economy.

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Michael Saylor calls Bitcoin the ‘Orange Dwarf’ of finance

Michael Saylor has drawn attention with a poetic analogy, describing Bitcoin as an ‘Orange Dwarf‘ in a recent tweet. He likened Bitcoin to a steadily growing and intensifying star, portraying it as the brightest object in the financial system that gains strength as it attracts capital. Saylor also referred to Bitcoin as a digital energy network, reinforcing its role as a transformative financial asset.

Strategy has been at the forefront of Bitcoin adoption since 2020, amassing 499,096 BTC and becoming the largest corporate holder. Under Saylor’s leadership, the firm has also issued approximately $9 billion in convertible bonds, further cementing its influence in the crypto space. A new exchange-traded fund (ETF), BMAX, was launched to track companies holding Bitcoin on their balance sheets, with Strategy making up a significant portion of the fund.

Meanwhile, Bitcoin faces market volatility ahead of the US Federal Reserve’s upcoming meeting. With investors closely watching for updates on inflation and monetary policy, the Fed is expected to maintain its cautious stance, with potential interest rate cuts anticipated later in the year.

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Baidu launches new AI models to compete in global race

Baidu has unveiled two new AI models, including ERNIE X1, which it claims matches the performance of DeepSeek R1 at half the cost. The company says X1 is a deep-thinking model capable of autonomous tool use, with enhanced reasoning, planning, and adaptability.

Meanwhile, Baidu’s latest foundation model, ERNIE 4.5, boasts improved multimodal capabilities, advanced language understanding, and a better grasp of satire and internet culture.

The Chinese tech giant has been striving to compete in the rapidly evolving AI landscape, where startups like DeepSeek have disrupted the industry with high-performing, cost-effective models. While Baidu was one of the first Chinese companies to launch a ChatGPT-style chatbot, its Ernie LLM has faced challenges in achieving widespread adoption.

With growing competition from domestic and international AI firms, Baidu aims to solidify its position through continuous innovation. The company’s latest advancements highlight the push for more sophisticated AI systems capable of processing diverse forms of data, including text, images, and audio, as China intensifies its efforts to lead in AI.

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OpenAI fast-tracks court clash with Elon Musk

Elon Musk and OpenAI have agreed to expedite their legal dispute concerning OpenAI’s transition to a for-profit entity, proposing a trial in December 2025. The development follows a series of legal manoeuvres, including a recent court decision denying Musk’s request to halt the restructuring process.

Musk, who co-founded OpenAI in 2015 but departed in 2018, initiated legal action last year, alleging that the company’s shift to a for-profit model deviates from its original mission to develop AI for the benefit of humanity.

In response, OpenAI and its CEO, Sam Altman, have refuted these claims, suggesting that Musk’s actions aim to impede a competitor, especially considering his establishment of the rival AI firm, xAI, in 2023.

The outcome of this lawsuit holds significant implications for OpenAI’s financial strategy. The company’s recent $6.6 billion funding round and a prospective $40 billion investment, currently under negotiation with SoftBank Group, are contingent upon its transition to a for-profit structure. Restructuring is essential to attract the capital needed to remain competitive in the evolving AI industry.

In February 2025, Musk led an unsolicited $97.4 billion takeover bid for OpenAI, which Altman promptly declined, reinforcing his stance that OpenAI is not for sale. Musk’s bid further intensified the complex relationship between Musk and OpenAI, highlighting the broader debate over the commercialisation of AI and the ethical considerations associated with balancing profit motives against societal benefits.

As the presumed December trial approaches, the tech industry and the public will closely monitor the proceedings, given their potential to influence the future trajectory of AI development and corporate governance within the sector.

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