Elon Musk’s social media platform X is testing a free version of its AI chatbot, Grok, which was previously exclusive to premium subscribers. Over the weekend, reports surfaced from users and researchers indicating that some free accounts in regions like New Zealand now have access to the AI tool. While usage is capped to 10 queries every two hours for the Grok-2 model, this marks a significant expansion of the technology’s reach.
Grok, developed by Musk’s company xAI, launched earlier this year with advanced features like image generation and understanding, powered by Black Forest Labs’ FLUX.1 model. Previously available only to paying users, the decision to extend limited access to free users may reflect xAI’s strategy to grow its user base and improve feedback for refining its technology.
To use Grok for free, accounts must be at least seven days old and linked to a phone number. This move positions xAI to compete with AI giants like OpenAI’s ChatGPT and Google’s Gemini, while also potentially bolstering its valuation, which reportedly reached $40B in recent funding discussions. This test of free access could accelerate Grok’s development cycle and further establish xAI in the competitive AI market.
AI companies, including OpenAI, are shifting away from the ‘bigger is better’ philosophy for training models. Instead, they are developing techniques that allow algorithms to ‘think’ in more human-like ways. These methods aim to address challenges such as massive energy consumption, hardware failures, and data scarcity that have hindered advancements in large language models.
OpenAI’s new model, o1, uses a technique called ‘test-time compute’, allowing it to consider multiple answers and choose the best option during use. This approach improves performance in complex tasks, like problem-solving and decision-making, without needing extensive pre-training. Noam Brown, an OpenAI researcher, revealed that even brief ‘thinking’ boosts the model’s capabilities significantly.
The industry-wide shift has broader implications for AI hardware, especially as Nvidia’s chips have been critical to AI training. Experts predict a move towards distributed cloud-based servers for inference tasks, potentially reshaping the demand landscape for chips. Prominent investors, such as Sequoia and Andreessen Horowitz, are monitoring these changes closely as they may impact investments in AI infrastructure.
German telecom leader Deutsche Telekom has entered the blockchain space as the first telecommunications company to operate a validator on the NEAR Protocol. The move marks its participation in NEAR’s Enterprise Node Operators programme, aimed at enhancing network decentralisation and security.
Deutsche Telekom sees this partnership as part of its commitment to greater data sovereignty and user control. Oliver Nyderle, head of digital trust and web3 infrastructure, described the collaboration as “promising and innovative,” highlighting its alignment with the company’s values. The initiative also broadens the firm’s staking portfolio, including networks focused on decentralised AI and scalability.
Following the announcement, NEAR Protocol’s price climbed 9.5% to $5.6, reflecting market optimism. This development comes on the heels of a Deutsche Telekom subsidiary launching a project to study Bitcoin mining using surplus renewable energy, showcasing its broader interest in blockchain applications.
The CEOs of Europe’s top three chip manufacturers expressed concerns about the rising nationalist policies from the US, China, and Europe. They argue these policies are pushing each region to secure its own semiconductor supply, causing significant strain on the global chip industry.
Infineon, STMicroelectronics, and NXP—major suppliers of chips for electric vehicles and industrial technology—highlighted the challenges these policies are creating. Speaking at an electronics conference in Munich, Infineon’s CEO Jochen Hanebeck warned that further fragmentation is likely, particularly through tariffs, which could seriously disrupt global supply chains.
STMicroelectronics’ Jean-Marc Chery pointed out that duplicating supply chains across continents has led to costly investments in both materials and engineering. The pressure to maintain regional independence in chip production is placing an unsustainable burden on resources, he noted, particularly as China’s demand for chips in electric vehicles remains strong.
Kurt Sievers, CEO of NXP Semiconductors, argued that no country could feasibly achieve self-sufficiency in the chip industry. Attempting to do so, he said, would lead to prohibitive costs, making electronic devices unaffordable for consumers. He anticipates governments will eventually realise that global cooperation is essential for sustaining the semiconductor industry.
German optical tech firm Carl Zeiss AG has inaugurated its first global capability centre (GCC) in Bengaluru, India, and plans to double its local workforce to 5,000 over the next three years. The new centre will focus on cloud computing, cybersecurity, and network operations, alongside software development for Carl Zeiss’s medical tech division. This move highlights India’s transformation from an outsourcing destination to a strategic base supporting global operations.
Beyond the GCC, Zeiss is expanding its presence in Bengaluru with a new manufacturing plant slated to open in 2025. This facility, the company’s largest investment outside Germany, will be its fifth in India, contributing to its workforce growth. The India unit, also involved in R&D and sales, is projected to reach a revenue of 22 billion rupees for the year ending September 2025—a 19% increase.
India’s GCC sector is booming, with Karnataka’s government aiming to double GCCs in the state by 2029. Industry reports expect the Indian GCC market to reach up to $105 billion by 2030, reflecting the country’s increasing role in global business support.
Vietnam’s semiconductor industry is gaining momentum as foreign companies invest in chip testing and packaging facilities, shifting some production away from China. Amid trade tensions between the US and China, several global players, including South Korea’s Hana Micron and US-based Amkor Technology, are expanding operations in Vietnam to diversify their production bases. Hana Micron has committed over $930 million to boost its packaging capacity, while Amkor is investing $1.6 billion to establish its largest packaging plant, transferring some machinery from its Chinese facilities.
The rise in investment is set to increase Vietnam’s global share in chip assembling, testing, and packaging, with estimates suggesting a rise from 1% in 2022 to around 8-9% by 2032. Domestic companies are also stepping up. Vietnamese tech firm FPT plans to start a testing facility near Hanoi next year, investing up to $30 million, while Sovico Group is seeking partnerships for a chip plant in Danang.
Vietnam’s strategic push into the semiconductor sector has been encouraged by the US, viewing the country as a potential alternative to China for supply chains. The Biden administration’s support, especially as trade tensions grow, has bolstered Vietnam’s role in this industry. With domestic and foreign investments combined, Vietnam is poised to strengthen its position as a key player in the global semiconductor back-end market.
Looking forward, Vietnam is ambitiously aiming to develop its front-end chipmaking capabilities, planning to have its first foundry operational by 2030. Viettel, a state-owned firm, is set to lead this initiative, indicating Vietnam’s broader goal of advancing its semiconductor industry and reducing reliance on foreign production bases.
A prominent Gigachad (GIGA) investor lost $6.09 million in a sophisticated phishing attack after clicking on a fake Zoom meeting link. The link redirected them to a malicious website that installed malware, enabling the hacker to drain three crypto wallets and steal 95.3 million GIGA tokens.
The hacker swiftly exchanged the stolen tokens for Solana and stablecoins like Tether and USD Coin, later transferring some funds to the KuCoin exchange. Crypto investigation firm Scam Sniffer revealed the method, and law enforcement, including the FBI, has been involved in the case.
Despite the significant loss, the investor remains optimistic, declaring confidence in recouping their funds during the ongoing crypto bull market. “I’m going to make it all back and more. Just watch me,” they said.
EU has committed €133 million ($142 million) to support pilot production facilities for photonic semiconductors in the Netherlands, according to the Dutch economy ministry. This initiative forms part of a larger €380 million fund under the EU’s Chips Joint Undertaking, a public-private partnership designed to bolster Europe’s semiconductor industry. Photonic semiconductors, which use light instead of electrons for calculations, promise enhanced speed and energy efficiency and are increasingly essential in fields like data centres and automotive technology.
Dutch economy minister Dirk Beljaarts emphasised photonics as a “technology of strategic importance” for Europe’s economic competitiveness. By building strong domestic capabilities in research, innovation, and supply chains, the EU aims to reduce dependence on global tech rivals. The move follows calls from European industry leaders for significant EU investment to keep pace with advancements in Asia and the US.
The Dutch pilot facilities, slated to begin construction in 2025, will involve Eindhoven and Twente universities alongside the TNO research institute, with co-investment from companies utilising the new infrastructure.
India’s financial crime agency is intensifying its probe into Flipkart and Amazon over alleged violations of foreign investment laws, with plans to summon executives from both companies after recent raids on their sellers. The Enforcement Directorate (ED) seized documents in last week’s raids, which a senior government source claims substantiate violations of India’s foreign investment laws. Under these laws, foreign e-commerce companies are restricted to operating as marketplaces without holding inventory, though the ED alleges that both Amazon and Flipkart have been exerting control over certain sellers.
This investigation adds to the growing regulatory scrutiny faced by the two e-commerce giants, which hold significant market shares in India’s $70 billion e-commerce sector. Previous findings from India’s antitrust authority suggested that both companies favour select sellers, allowing them to bypass marketplace-only regulations. One prominent Amazon seller, Appario, was reportedly raided and found to receive exclusive support from Amazon, including reduced fees and advanced retail tools.
The ED’s latest actions follow a pattern of increased regulatory focus on large e-commerce and delivery platforms, with recent antitrust findings indicating similar preferential treatment by food delivery services Zomato and Swiggy. As India’s retail landscape continues to expand, regulatory bodies are pushing for stricter compliance to ensure fair competition and protect smaller businesses.
Baidu Inc. has launched several new AI-driven tools, including a text-to-image generator and a no-code app builder, aiming to make advanced technology more accessible. The unveiling took place at the Baidu World Conference, where CEO Robin Li presented innovations that showcase the company’s commitment to commercialising large language model (LLM) applications.
Among the new offerings is I-RAG, a text-to-image generator designed to prevent errors known as hallucinations—images deviating from input text or containing unreal elements. According to Li, the company’s Ernie platform now handles 1.5 billion interactions daily, a remarkable leap from 200 million requests just months ago. This platform supports tasks like text generation, question-answering, and other AI-assisted functions.
In its push for user-friendly AI, Baidu has introduced Miaoda, a no-code tool that leverages LLM capabilities to enable software creation without coding expertise. The company has also integrated these tools into its cloud services, providing AI-powered solutions across its product range for broader commercialisation.
Baidu’s expansion includes new hardware, with the debut of Xiaodu AI glasses, equipped with cameras and voice-interaction capabilities powered by the Ernie platform. Rather than building a single ‘super app’, Baidu is diversifying its approach, distinguishing itself from rivals by focusing on a more versatile AI product lineup.
