Trump reveals Microsoft in negotiations to buy TikTok

US President Donald Trump revealed on Monday that Microsoft is in discussions to acquire TikTok, expressing a desire for a bidding war over the popular app. While Microsoft declined to comment, TikTok and its Chinese parent company, ByteDance, did not immediately respond to media inquiries. TikTok, which has around 170 million US users, faced a brief shutdown just before a law that could force ByteDance to sell the app or face a ban took effect in January.

Trump mentioned last week that he was in talks with various parties regarding TikTok’s future, promising a decision within 30 days. The president also indicated that he would be open to Elon Musk acquiring TikTok, although the Tesla CEO has yet to comment. In addition to Microsoft, AI startup Perplexity AI proposed merging with TikTok, suggesting a potential deal where the US government could hold up to half of the new company.

This marks the second time Microsoft has been involved in potential talks to acquire TikTok. Back in 2020, Microsoft emerged as a frontrunner in buying the app, but those discussions eventually collapsed. Microsoft CEO Satya Nadella later described the situation as “the strangest thing” he had ever worked on, noting how the deal abruptly disappeared after the Trump administration pushed for a divestment.

OpenAI faces legal action from Indian news companies

Several prominent Indian media outlets, including those owned by billionaires Gautam Adani and Mukesh Ambani, are taking legal action against OpenAI. These outlets, such as NDTV and Network18, along with organisations like the Indian Express and Hindustan Times, have filed to join an ongoing lawsuit against OpenAI in a New Delhi court. They allege that OpenAI has been improperly scraping their copyrighted content to train its AI model, ChatGPT, without permission or payment.

The legal claim, which is being led by the Digital News Publishers Association (DNPA), argues that OpenAI’s practices pose a significant threat to the copyrights of its members. The publishers claim that OpenAI’s actions amount to ‘wilful scraping’ and the use of their work for commercial gain, especially as the company generates revenue through ads linked to AI-generated content. This lawsuit highlights broader concerns in the media industry about the influence of large tech companies on content distribution and monetisation.

The legal proceedings are part of a larger global trend, with authors, musicians, and news organisations worldwide suing AI firms for using their works without compensation. In the US, the New York Times has filed a similar lawsuit against OpenAI and its major backer, Microsoft. This new case in India adds significant pressure to OpenAI, which has denied the allegations, arguing that its AI systems rely on publicly available data and that deleting such data could violate US law.

The Indian plaintiffs argue that OpenAI’s failure to strike content-sharing deals with local publishers, while it has done so with international media outlets, undermines the business of Indian news companies. The publishers warn that OpenAI’s practices could weaken the media landscape and negatively impact democracy, calling for greater protection of intellectual property in the age of AI.

Repsol announces 4 billion euro data centre project, Expansion reports

Spanish oil company Repsol plans to invest 4 billion euros ($4.2 billion) in building data centres near Zaragoza, according to a report by Expansion newspaper. The planned investment marks Repsol’s significant move into the tech sector, aiming to capitalise on the growing demand for cloud computing infrastructure.

Zaragoza is becoming a key hub for cloud services, with major tech companies like Amazon and Microsoft already making large investments in the region. Repsol’s project will contribute to the area’s growing reputation as a leading destination for data centre development.

The company has not yet commented on the report, and details on the project’s timeline remain unclear. This move signals a shift for Repsol as it expands beyond its core oil business into digital services.

UMG and Spotify strike new multi-year deal

Universal Music Group (UMG) and Spotify have announced a new multi-year agreement covering recorded music and music publishing. The deal establishes a direct license between Spotify and UMG across the US and several other countries, aimed at enhancing the streaming experience for artists, songwriters, and consumers.

The partnership promises to introduce new offerings, including upgraded paid subscription tiers and a more expansive catalogue of music and visual content. Both companies emphasise that this collaboration will drive continuous innovation, making music subscriptions more appealing to a global audience.

As Spotify works to improve its profitability, the company has recently implemented cost-cutting measures, including layoffs and a reduced focus on podcasts. It has also raised prices for its US plans to cater to the growing demand for premium services.

Europol highlights encryption concerns at the World Economic Forum

At the World Economic Forum in Davos, Europol’s executive director, Catherine De Bolle, urged tech companies to provide law enforcement access to encrypted messages, citing public safety concerns. While she argued this is necessary to combat crime and protect democracy, critics highlighted the risks of undermining encryption, which is essential for privacy and individual freedoms.

De Bolle compared accessing encrypted communications to executing a search warrant in a locked house. However, this analogy oversimplifies the issue, as encryption safeguards sensitive data and ensures private communication, even under authoritarian regimes. Weakening it could lead to widespread misuse, enabling mass surveillance and suppression, as seen in places like Russia.

Advocates for privacy stress that encryption is not merely a barrier to crime but a cornerstone of democracy, enabling free speech and safeguarding against state overreach. While law enforcement has other tools for crime-fighting, creating backdoors to encryption would expose everyone to cyber risks and potentially render digital security obsolete.

If governments succeed in weakening encryption, decentralised solutions backed by blockchain technology could rise, making such access nearly impossible in the future. The debate underscores the critical balance between security and preserving fundamental rights.

Kraken’s major defence dismissed in SEC lawsuit

The US Securities and Exchange Commission (SEC) has partially won its case against the crypto exchange Kraken. A California federal judge ruled on 24 January 2025, dismissing Kraken’s argument that Congress had not granted the SEC jurisdiction over the crypto market. Judge William Orrick decided that the SEC’s actions fell within powers that Congress could reasonably have delegated to the agency.

Kraken had invoked the ‘major questions doctrine,’ which argues that government agencies cannot exercise powers not specifically granted by Congress. Other crypto companies, such as Coinbase and Binance, have used this defence in similar cases. However, Judge Orrick noted that while cryptocurrency is growing, it has not reached an economic significance comparable to other sectors like energy or student loans.

Despite this, the court allowed Kraken’s ‘fair notice’ defence to remain in place. Kraken claimed it wasn’t adequately informed by the SEC about how its activities might violate securities laws. The case, which began in November 2023, is part of the SEC’s ongoing efforts to regulate the crypto industry, with Kraken accused of operating without proper registration as a securities exchange.

Paul McCartney warns AI could exploit artists

Paul McCartney has raised concerns about AI potentially ‘ripping off’ artists, urging the British government to ensure that upcoming copyright reforms protect creative industries. In a recent BBC interview, McCartney warned that without proper protections, only tech giants would benefit from AI’s ability to produce content using works created by artists without compensating the original creators.

The music and film industries are facing legal and ethical challenges around AI, as models can generate content based on existing works without paying for the rights to use the original material. In response, the UK government has proposed a system where artists can license their works for AI training, though it also suggests exceptions for AI developers using unreserved rights materials at scale.

McCartney emphasised that while AI has its merits, it should not be used to exploit artists. He highlighted the risk that young creators could lose control over their works, with profits going to tech companies rather than the artists themselves. ‘It should be the person who created it’ who benefits, he said, urging that artists’ rights be prioritised in the evolving landscape of AI.

World ID forced to stop offering crypto for biometrics in Brazil

Brazil’s data protection authority, ANPD, has ordered Tools for Humanity (TFH), the company behind the World ID project, to cease offering crypto or financial compensation for biometric data collection. The move comes after an investigation launched in November 2023, with the ANPD citing concerns over the potential influence of financial incentives on individuals’ consent to share sensitive biometric data, such as iris scans.

The World ID project, which aims to create a universal digital identity, uses eye-scanning technology developed by TFH. The ANPD’s decision also reflects its concerns over the irreversible nature of biometric data collection and the inability to delete this information once submitted. Under Brazilian law, consent for processing such sensitive data must be freely given and informed, without undue influence.

This is not the first regulatory issue for World ID, as Germany’s data protection authority also issued corrective measures in December 2023, requiring the project to comply with the EU’s General Data Protection Regulations. Meanwhile, the value of World Network’s native token, WLF, has dropped significantly, falling by over 8% in the past 24 hours and 83% from its peak in March 2023.

Google aims to shape AI policy and workforce training

Google is ramping up efforts to influence public perception and policy on AI as it faces increasing global regulatory scrutiny. Kent Walker, Alphabet’s president of global affairs, emphasised the importance of educating the workforce on AI, saying that getting more people familiar with the technology would lead to better policy and open new opportunities. Google is keen on shaping the narrative around AI, especially as it competes with rivals like Microsoft and Meta in the fast-growing sector.

The company is also working to address concerns about job displacement and the potential for AI-driven workforce changes. Google has committed $120 million to AI education programs, with initiatives like the “Grow with Google” program, which provides online and in-person training to help workers gain skills in areas such as data analysis and IT. The company has already certified one million people through these programs and is now adding AI-focused courses.

As governments draft regulations on AI’s impact on privacy, copyright, and the economy, Google is pushing for public-private partnerships to help prepare workers for AI-related changes. Walker noted that while AI could displace some jobs, it will likely be integrated into most roles, creating new opportunities. Google is also researching AI’s potential in training programs, aiming to make adult retraining more engaging and effective.