Economic Archives | Page 622 of 714 | Digital Watch Observatory

Cyprus and Khazna to forge strategic digital partnership

Cyprus and Khazna have entered into a significant partnership through a Memorandum of Understanding (MoU) signed by the Deputy Ministry of Research, Innovation, and Digital Policy. That agreement aims to enhance Cyprus’s digital infrastructure by focusing on joint data centre projects, thereby positioning Cyprus as a key player in the global digital landscape.

Recognising Cyprus’s geographical advantage as a natural data gateway connecting Europe, Asia, and Africa, the collaboration seeks to attract businesses that require reliable, scalable, and secure data platforms. Furthermore, with a robust network of submarine fibre-optic cables and satellite teleports already in place, additional investments are planned to strengthen this infrastructure and meet the growing demands for digital connectivity.

In addition, the partnership aims to integrate advanced technologies such as AI, smart mobility, and space solutions, driving the evolution of Cyprus into a regional tech and innovation hub while fostering a vibrant digital economy for both citizens and businesses. Moreover, the commitment to creating new business and economic opportunities is expected to benefit society and future generations.

By leveraging Khazna’s expertise in hyperscale digital infrastructure, this collaboration will further enhance Cyprus’s position as a growing technology hub in the region. Ultimately, this partnership signifies a strategic commitment to digital transformation and reflects a shared vision of a digitally advanced Cyprus poised for future innovation and growth.

US FCC to implement new rules for robocalls and robotexts

The US Federal Communications Commission (FCC) has announced new rules to enhance consumer protections against unwanted robocalls and robotexts, which are increasingly becoming a nuisance for individuals across the nation. Set to take effect on 11 April 2025, these guidelines will allow consumers to revoke their consent for receiving such communications in ‘any reasonable way.’

Specifically, this includes using automated opt-out mechanisms during calls, replying ‘stop’ to text messages, or visiting a designated website or phone number provided by the caller. Moreover, companies must process opt-out requests within a maximum of 10 business days from receipt, and they can send a one-time confirmation text to acknowledge the opt-out request, provided that it does not contain any marketing content.

These rules are particularly significant for the mortgage industry, which has faced criticism for practices like ‘trigger leads,’ where companies purchase consumer information for solicitation. Consequently, by incorporating the Homebuyers Privacy Protection Act of 2024 into the National Defense Authorization Act, the FCC reinforces its commitment to consumer privacy and trust in the mortgage sector, encouraging companies to adopt ethical marketing strategies.

Overall, these new measures represent significant steps toward empowering consumers and enhancing their overall experience with telecommunications services. Implementing these guidelines holds companies accountable for adhering to updated regulations, ensuring that consumers can effectively manage their communication preferences. The proactive approach addresses consumer concerns and fosters a more transparent and trustworthy environment in electronic communications.

Meta faces another round of layoffs affecting Threads and other teams

Meta experienced another wave of layoffs on Wednesday, affecting multiple teams, including those working on Threads, recruiting, legal operations, and design. These cuts are part of the company’s ongoing effort to reallocate resources that are aligned with its strategic goals and location strategy. According to a statement from Meta, some teams were relocated, and certain employees were shifted to new roles, while others faced job eliminations. In cases where roles were cut, Meta stated that it works to provide new opportunities for affected employees.

Text, Person, Page, Face, Head, Jiang Xindi, Andreas Hestler

While the exact number of layoffs remains unclear, social media posts and anonymous employee accounts suggest several team members were dismissed through video calls. Some of those affected received six weeks of severance pay. According to The Verge, teams from Meta’s Reality Labs, Instagram, and WhatsApp divisions were also impacted by this round of layoffs.

Why does it matter?

Meta has been undergoing significant workforce reductions following the company’s pandemic-era expansion. In 2022, the tech giant laid off 13% of its workforce—approximately 11,000 employees—with CEO Mark Zuckerberg taking responsibility for the decision. Another 10,000 employees were cut in 2023, along with the withdrawal of 5,000 open positions. These ongoing changes reflect Meta’s shift toward streamlining operations amid a challenging economic environment.

Amazon goes nuclear for data centers

Amazon has taken a bold step into nuclear power technology by signing three agreements to develop small modular reactors (SMRs) to address the growing demand for electricity from its data centres. In collaboration with X-Energy, Amazon will fund a feasibility study for an SMR project near a Northwest Energy site in Washington state, positioning itself as a critical player in the shift toward new energy sources. The deal allows Amazon to purchase power from four SMR modules, with the potential for up to eight additional modules capable of producing enough energy to power more than 770,000 homes.

SMRs are gaining attention due to their promise of lower construction costs, with components built in factories rather than onsite. However, critics argue they may still need to be more expensive to reach the necessary economies of scale. Despite this, nuclear power, which produces no greenhouse gas emissions and provides stable, well-paying jobs, is supported by both political parties in the US. However, US SMRs still need to be built, and concerns remain about radioactive waste and regulatory approvals.

The power demand, driven by the rise of AI and data centres, has prompted tech companies like Amazon, Microsoft, and Google to explore nuclear energy solutions. US power consumption from data centres is projected to triple by 2030, requiring nearly 47 gigawatts of new generation capacity. In response, Amazon and X-Energy aim to bring 5 gigawatts of SMR power online by 2039, marking the most significant planned commercial deployment of SMRs in the US.

In addition to the Washington project, Amazon has signed an agreement with Dominion Energy to develop an SMR near its power station in Virginia, where energy demand is expected to surge by 85% over the next 15 years. US Senator Mark Warner praised the move, emphasising that SMR development could finally take off in the US, which has yet to build one.

Why does it matter?

The push for nuclear energy isn’t unique to Amazon. Earlier this week, Google announced a partnership with Kairos Power to deploy an SMR by 2030, while Microsoft has struck a deal to help revive a unit of the Three Mile Island plant. As tech giants increasingly look to nuclear power, the future of energy in the US could hinge on the successful deployment of SMRs.

Europe prepares for stablecoin regulations with MiCA

The European Union’s Markets in Crypto-Assets Regulation (MiCA) is poised to play a crucial role in the global regulation of stablecoins. According to Binance, the comprehensive framework will set clear rules for stablecoin issuance, reserve management, and redemption, enhancing market stability and consumer protection. MiCA’s approach will also serve as a global benchmark, helping other jurisdictions align their regulatory efforts for cross-border compatibility.

Although MiCA is expected to bring more certainty to the crypto industry, its strict implementation could challenge smaller firms and decentralised finance (DeFi) protocols. The legislation may require them to meet the same licensing and Know Your Customer (KYC) standards as traditional financial services, adding significant compliance burdens. The framework also includes a ban on algorithmic stablecoins to prevent collapses like that of Terra USD (UST).

As MiCA comes into effect on 30 December, major financial institutions like Societe Generale are already preparing MiCA-compliant digital assets. The banking group is partnering with Bitpanda to launch the EUR CoinVertible stablecoin.

Intel and AMD unite to tackle Arm’s growing influence

Intel and AMD are teaming up to ensure software compatibility across their x86 chips in response to competition from Arm Holdings. For decades, Intel’s x86 architecture has powered laptops, PCs, and servers, with AMD licensing the technology to make its own competing chips. However, Arm’s market share has grown, partly due to its contracts requiring that all Arm chips support Arm software universally.

In response, Intel and AMD have formed an advisory group that includes major industry players such as Broadcom, Dell Technologies, Lenovo, and Oracle. The group’s objective is to establish consistent and compatible standards for x86 chips by combining expertise from the hardware and software sectors.

At a Lenovo event in Seattle, Intel CEO Pat Gelsinger highlighted the flexibility of x86 technology for AI-enabled laptops, stating that the architecture is still strong and poised for growth and innovation as AI advances.

Binance and Delhi police expose $100,000 lost in solar scam

Binance has partnered with the Delhi Police to uncover and dismantle a $100,000 scam tied to India’s renewable energy goals. The fraudulent scheme, operated by ‘M/s Goldcoat Solar,’ falsely claimed it had official backing to help expand the nation’s solar power capacity. Promising high returns, the scammers duped investors by aligning their activities with India’s green energy ambitions.

Using social media to impersonate officials and create fake earnings reports, the syndicate built trust with victims, while concealing their true identities through multiple SIM cards registered under unsuspecting individuals. Binance aided the investigation by providing crucial analytical support to trace the funds, which had been laundered through bank accounts and converted into cryptocurrency.

The crackdown comes after Binance’s recent re-entry into India, where the exchange is now registered with the Financial Intelligence Unit, ensuring compliance with local regulations amid ongoing efforts to regulate crypto platforms.

Japanese tech firms use AI to protect call centre staff

Japanese tech giants NTT Communications and SoftBank are developing AI-driven systems to support call centre employees dealing with abusive customers. NTT Communications has designed a support system that monitors interactions, providing operators with appropriate real-time responses. During a recent demonstration, the system suggested a response to a customer complaint, which was then confirmed as effective.

The technology aims to reduce the psychological stress faced by call centre staff, who often struggle to remain composed when confronted with aggressive callers. By providing quick and accurate responses, the system may also help calm upset customers, according to NTT Communications.

Meanwhile, SoftBank is working on an AI system that modifies the tone of customer voices during interactions, aiming to ease tensions. The company plans to launch this service by fiscal year 2025. These developments address the growing issue of ‘kasu-hara,’ or customer harassment, in Japan, where verbal abuse and demands for excessive apologies have led to mental health issues and job resignations among workers in service industries.

Microchip stocks tumble amid ASML’s weak forecast

Chip stocks took a sharp hit after ASML, a leading chip equipment maker, lowered its annual sales forecast due to weak demand for non-AI chips. This downturn raised concerns about the broader semiconductor market, even as AI-related chips remain in high demand. Nvidia, a major player in the AI chip sector, saw its stock drop 4.5%, erasing $158 billion in market value, while other key chipmakers like AMD, Intel, and Micron also saw declines.

ASML’s early results revealed a slowdown in bookings and delayed orders from logic chip manufacturers, as well as limited new capacity plans from memory chip makers. This caused US and Asian semiconductor stocks to slide, with the Philadelphia Semiconductor Index down nearly 5%. Despite growth in AI chips, the overall chip market remains under pressure, with many factories holding off on new equipment purchases as demand stabilises.

The chip industry had expanded rapidly during the pandemic, but now faces a period of slower recovery outside the AI segment. Adding to the uncertainty, US officials are considering restrictions on exporting AI chips to certain countries over national security concerns, further complicating the outlook for the sector.

AI-powered updates coming to Google’s Shopping tab

Google is enhancing its Shopping tab with AI, building on its previous integration of generative A I into Search in 2023. The company announced it will use AI technology to help users find products that match their specific needs. The update includes a new, personalised feed of shoppable products, offering a scrollable, TikTok-inspired design.

When users search for a product, an AI-generated brief will provide personalised tips and considerations based on their query. For example, if someone searches for a “men’s winter jacket for Seattle,” the AI might recommend prioritising water resistance for the rainy climate and suggest insulation types suitable for the milder temperatures.

Google’s AI will recommend relevant products, offering brief descriptions to explain why each item is a suitable choice. Users can browse categories like “Synthetic insulated winter jackets for Seattle” and use filters to refine their search based on specific sizes or local availability.

The personalised shopping feed will showcase products and videos tailored to user preferences, featuring items like Chelsea boots alongside YouTube Shorts with shopping tips. Google is positioning itself to compete with TikTok, which has gained traction in e-commerce. These new features will roll out in the US in the coming weeks, as Google combines its Shopping Graph with advanced Gemini models to enhance the user experience.