Several Chinese state-linked entities are turning to cloud services to access restricted US technology, according to recent public tender documents. By using cloud platforms like Amazon Web Services (AWS), these entities gain access to advanced chips and AI capabilities that would otherwise be unavailable due to US trade restrictions.
Entities like Zhejiang Lab and the National Center of Technology Innovation for EDA have expressed interest in using AWS for AI development. Others, such as Shenzhen University and Fujian Chuanzheng Communications College, have reportedly utilised Nvidia chips through cloud services, circumventing US export bans.
Microsoft’s Azure platform has also attracted attention from Chinese institutions like Chongqing Changan Automobile Co and Sichuan University, which are exploring generative AI technology. The ability to integrate these advanced tools into their systems is seen as critical for maintaining competitiveness.
Concerns remain over the use of US technology by Chinese organisations, especially those with potential military applications. Universities such as Southern University of Science and Technology and Tsinghua University have pursued cloud access to Nvidia chips, despite US efforts to restrict such technology transfers.
A Washington, DC, appeals court has revived a lawsuit against Amazon, claiming that the company’s pricing policies stifle competition. The District of Columbia had initially filed the lawsuit in May 2021, accusing Amazon of restricting third-party sellers from offering lower prices on other platforms and maintaining agreements with wholesalers that discourage price reductions. The lawsuit alleges that these practices harm competition and lead to higher prices for consumers.
The DC Court of Appeals reversed a previous ruling that dismissed the case, stating that the claims made by the DC Attorney General were plausible and could proceed. The lawsuit is part of a broader legal challenge, as Amazon also faces similar accusations from the US Federal Trade Commission and several states.
Amazon has defended its policies, arguing that they benefit consumers by ensuring competitive pricing. However, DC Attorney General Brian Schwalb has welcomed the court’s decision, reaffirming his commitment to fighting what he describes as Amazon’s unfair practices that limit innovation and choice in online retail.
Tensions are rising within Google’s AI research division, DeepMind, as over 200 employees have expressed concerns regarding the company’s involvement in defence contracts. The discontent stems from Google’s reported agreements to provide AI and cloud computing services to military organisations, including the Israeli military.
In an internal letter circulated in May, the employees voiced their unease, emphasising that such contracts contradict Google’s mission to lead in ethical AI development. The letter argues that any association with military activities could undermine the company’s commitment to responsible AI, as stated in Google’s AI Principles.
Why does this matter?
The dissent highlights a growing cultural divide between DeepMind and Google, particularly regarding the ethical implications of their technologies. DeepMind, acquired by Google in 2014, had previously been assured that its AI developments would not be used for military or surveillance purposes, a promise now seemingly in jeopardy.
The situation underscores the ongoing ethical debates within tech companies about the application of AI in military contexts, raising questions about the balance between innovation and ethical responsibility.
Ark Labs, a young startup focused on enhancing bitcoin transactions, has secured $2.5 million in pre-seed funding. The funding round, led by billionaire investor Tim Draper, saw participation from Draper Associates, Fulgur Ventures, Axiom Capital, and angel investor Stephen Cole. The investment highlights Silicon Valley’s growing interest in making cryptocurrency, particularly bitcoin, a mainstream payment method.
Despite bitcoin’s status as an important asset class with billions in trading inflows, experts suggest it needs broader utility to maintain high-interest levels. Ark Labs plans to use the funds to expand its team and improve its technology to facilitate quicker and more cost-effective bitcoin transactions.
Tim Draper, a seasoned investor in tech giants like SpaceX and Tesla, emphasised the need to make bitcoin a viable medium of exchange for everyday use. He believes Ark Labs’ technology will contribute to seamless bitcoin payments, advancing its adoption as a practical currency.
The startup’s efforts align with a broader trend of mature investors and capital increasingly backing bitcoin, a shift that could drive the cryptocurrency’s evolution and greater acceptance as an asset class.
California’s revised bill on AI regulation, SB 1047, has drawn significant attention from tech companies, including San Francisco-based Anthropic, a competitor to OpenAI. The bill, introduced by State Senator Scott Wiener, seeks to mandate safety testing for advanced AI models that are costly to develop and establish a ‘kill switch’ for malfunctioning AI.
While the bill has faced opposition from major tech players like Google, Meta, and OpenAI, Anthropic’s CEO, Dario Amodei, has noted that recent amendments have improved the bill, making its benefits potentially outweigh its costs, though some concerns remain. Tech companies have largely opposed the bill, arguing that it could hinder AI development in California and create an uncertain legal environment.
Meta, in particular, warned that the bill could make the state less attractive for AI innovation. OpenAI has advocated for federal rather than state regulation, citing the bill’s potential to complicate the legal landscape for AI developers.
Despite these concerns, the revised version of SB 1047 has been seen as a step forward by some in the tech community. Amodei acknowledged that while the bill’s initial version raised fears of stifling innovation, the amendments have alleviated many of those worries. However, he still sees some aspects of the bill as potentially problematic.
French President Emmanuel Macron is set to visit Serbia from 29 August to 30 to discuss enhancing economic relations and Serbia’s emerging role in the AI sector. During the visit, Macron will meet with Serbian President Aleksandar Vucic to explore opportunities for collaboration, particularly as Serbia prepares to chair the Global Partnership on Artificial Intelligence in 2025.
This initiative, established by Macron and Canadian Prime Minister Justin Trudeau, aims to ensure the responsible development of AI. The trip follows a recent agreement between Serbia and the European Union, which grants the EU access to raw materials from Serbia.
Macron’s visit will also align with France’s plans to host an AI Action Summit in 2025, underscoring the growing importance of AI in international relations and economic partnerships.
The potential return of Donald Trump to the White House has sparked a surge in investments in the EU defence technology startups. Industry leaders and investors attribute this trend to Trump’s threats to withdraw the US from NATO and his insistence that allies increase their defence budgets. These facts and ongoing global tensions have pushed military spending to a record $2.4 trillion in 2023.
Prominent investors have noted that Trump’s unpredictable foreign policy has driven the EU states to invest more in their defence, fostering growth in robotics, drones, and quantum computing. Munich-based Vsquared Ventures, a leading deep-tech investor, emphasised that the urgency created by Trump’s rhetoric has accelerated investments in these areas.
Why does this matter?
While Russia’s invasion of Ukraine remains the primary driver of increased defence spending, Trump’s approach has also led to a shift in Europe, where leaders are seeking greater self-sufficiency in defence. These circumstances have resulted in a 16% rise in defence and security spending across Europe in 2023, with further investments expected as concerns over future US support persist.
Despite a broader downturn in venture capital funding, investments in defence technology startups have remained relatively resilient, with only a modest decline compared to other sectors. The EU companies like Quantum Systems and ARX Robotics have directly benefited from this shift as governments prioritise strengthening their military capabilities in light of global uncertainties.
Mercado Pago, the financial technology arm of Latin American e-commerce giant MercadoLibre, has introduced a stablecoin called Meli Dolar in Brazil. The new digital currency is pegged to the US dollar at a one-to-one value and is available to all Mercado Pago clients through the company’s app.
The launch expands Mercado Pago’s crypto offerings, including assets like bitcoin and ether. Also, the introduction of Meli Dolar marks Mercado Pago’s latest move into the cryptocurrency market in Brazil, the company’s largest market.
In 2022, MercadoLibre also launched MercadoCoin, a cryptocurrency tied to its loyalty program. Mercado Pago has announced that clients will not be charged fees for trading Meli Dolar, and the crypto asset platform Ripio will facilitate these transactions as an exchange and market maker.
Energix Renewable has entered into a long-term partnership with Alphabet’s Google to supply electricity and Renewable Energy Credits (RECs) generated from its solar project to the tech giant. Energix will initially supply 1.5 gigawatt-peak of solar project development till 2030, with a possibility of further extension.
Google will be offering Energix tax equity. As a part of the US government’s Inflation Reduction Act, corporate entities are allowed to acquire credits for supporting the development of clean energy projects like solar and wind facilities. The move also ties into Google’s long-term vision of being carbon neutral by 2030.
Why is it important?
AI’s accelerated development pushes power demand to sustain highly energy-intensive data centres. This increase in electricity needs is poised to drive up energy demand on an exceptional scale, and given the huge strides in AI development, it’s likely that computing speed will ramp up faster than improvements in electricity efficiency. Against such a backdrop, this move by Google reveals how big tech players are ramping up their efforts to ensure a seamless electricity supply by entering agreements with energy providers.
Tether, a leading cryptocurrency company, announced plans to introduce a new stablecoin pegged to the United Arab Emirates (UAE) dirham, aiming to offer an alternative to the US dollar. Stablecoins, digital tokens backed by traditional currencies, are commonly used for payments and trading on crypto exchanges. Tether’s CEO, Paolo Ardoino, highlighted the growing interest in holding dirhams outside the UAE, citing the currency’s stability and the nation’s robust economic position.
The UAE is positioning itself as a global hub for the crypto industry, rapidly enabling cryptocurrency payments in areas such as real estate and education. The country is also developing virtual asset regulations in Abu Dhabi and Dubai, fostering increased adoption and transaction volumes. Despite the growth, regulators have warned of risks associated with crypto assets, particularly concerns over stablecoin reserves and the potential for rapid outflows.
Tether, whose dollar-pegged stablecoin (USDT) dominates the market with $117 billion in circulation, plans to launch the dirham-backed stablecoin in partnership with Abu Dhabi-listed Phoenix Group and Green Acorn Investment. While a specific launch date has not been provided, the licensing process with the UAE Central Bank is expected to take several months.
