The US has revoked eight licenses this year, which previously allowed certain companies to export goods to Huawei in an attempt to exert pressure on the Chinese telecom giant. Earlier in May, the Commerce Department announced that it had revoked some licenses but did not specify the details.
The development occurred as Republican hardliners in Congress pushed to intensify measures against Huawei, which surprised the industry last August with a new phone featuring an advanced chip from Chinese manufacturer SMIC despite US export restrictions. The phone boosted Huawei’s smartphone sales by 64% in the first six weeks of 2024. Additionally, Huawei’s smart car components business has driven its fastest revenue growth in four years during 2023.
These details highlight the Biden administration’s efforts to hinder Huawei’s recovery despite previous measures aimed at weakening the company on national security grounds. Meanwhile, Huawei continues to deny being a security threat.
Why does this matter?
Such license revoking measures can be located as a part of the larger tech war intensification between the US and China, especially concerning chip market dominance. With the race between the two superpowers set to continue, it’ll cost the global economy enormously with a loss of trade revenue.
According to Sabine Keller-Busse, head of the Swiss bank’s domestic business, UBS is experiencing a significant shift in AI-driven client interactions. She compared this change to patients visiting doctors with pre-formed ideas about their ailments, noting that clients now use AI to generate proposals for the bank.
Speaking at the Point Zero Forum in Zurich, Keller-Busse highlighted the impact of tools like ChatGPT in making more data available, emphasising that UBS must adapt to this new client behaviour.
The bank has been integrating AI into its services and products, launching a pilot programme last year for instant credit aimed at small and mid-sized businesses with urgent liquidity needs. However, this service allows the process to bypass credit officers, expediting the approval for standard credit products. Keller-Busse described this as the beginning of AI’s transformative potential in the banking industry.
As AI continues to evolve, UBS is keenly aware of its growing role in shaping client interactions and service delivery. The bank’s early adoption of AI-driven solutions demonstrates its commitment to leveraging technology to meet its clients’ changing needs, promising future innovations.
Apple Inc. has secured an observer role on OpenAI’s board, further solidifying their growing partnership. Phil Schiller, head of Apple’s App Store and former marketing chief, will take on this position. As an observer, Schiller will attend board meetings without voting rights or other director powers. The development follows Apple’s announcement of integrating ChatGPT into its devices, such as the iPhone, iPad, and Mac, as part of its AI suite.
Aligning Apple with OpenAI’s principal backer, Microsoft Corp., the observer role offers Apple valuable insights into OpenAI’s decision-making processes. However, Microsoft and Apple’s rivalry might lead to Schiller’s exclusion from certain discussions, particularly those concerning future AI initiatives between OpenAI and Microsoft. Schiller’s extensive experience with Apple’s brand makes him a suitable candidate for this role, despite his lack of direct involvement in Apple’s AI projects.
The partnership with OpenAI is a key part of Apple’s broader AI strategy, which includes a variety of in-house features under Apple Intelligence. These features range from summarising articles and notifications to creating custom emojis and transcribing voice memos. The integration of OpenAI’s chatbot feature will meet current consumer demand, with a paid version of ChatGPT potentially generating App Store fees. No financial transactions are involved; OpenAI gains access to Apple’s vast user base while Apple benefits from the chatbot’s capabilities.
Apple is also in discussions with Alphabet Inc.’s Google, startup Anthropic, and Chinese companies Baidu Inc. and Alibaba Group Holding Ltd. to offer more chatbot options to its customers. Initially, Apple Intelligence will be available in American English, with plans for an international rollout. Furthermore, collbaoration like this marks a rare instance of an Apple executive joining the board of a major partner, highlighting the significance of this partnership in Apple’s AI strategy.
Japan has introduced new banknotes featuring advanced holographic technology to prevent counterfeiting, marking the country’s first redesign in twenty years. The bills display 3D portraits of prominent figures such as Eiichi Shibusawa on the 10,000-yen note, recognised as the pioneer of Japanese capitalism, which change direction depending on the viewing angle. That technology, claimed by Japan’s National Printing Bureau as the world’s first for paper money, enhances security against counterfeiting.
See the fresh faces of Japanese currency 💴 with new designs for the 10,000 yen, 5,000 yen, and 1,000 yen banknotes! Each boasts historical figures key to Japan's modernization and anti-counterfeiting technologies 🔒 including 3D holograms.https://t.co/ohV1BU2eAL#NewBanknotepic.twitter.com/zhkuJAhLpM
While instances of counterfeit banknotes have decreased, Japan plans to issue 7.5 billion of these new bills by the end of the fiscal year, supplementing the existing 18.5 billion banknotes in circulation. The initiative has spurred businesses such as train stations and vending machine operators to upgrade payment systems. Despite the growing popularity of cashless transactions, cash remains significant for its convenience and security in Japan.
Why does this matter?
The banknote redesign aligns with Japan’s efforts to revive its economy, aiming to stimulate consumer spending and enhance productivity. Nevertheless, some businesses are cautious about the additional costs of upgrading machines amidst inflationary pressures. The government’s emphasis on digitalisation reflects broader economic strategies amidst changing payment trends.
Meta has announced a significant update regarding using AI labels across its platforms, replacing the ‘Made with AI’ tag with ‘AI info’. This change comes after widespread complaints about the incorrect tagging of photos. For instance, a historical photograph captured on film four decades ago was mistakenly labelled AI-generated when uploaded with basic editing tools like Adobe’s cropping feature.
Kate McLaughlin, a spokesperson for Meta, emphasised that the company is continuously refining its AI products and collaborating closely with industry partners on AI labelling standards. The new ‘AI info’ label aims to clarify that content may have been modified with AI tools rather than solely created by AI.
The issue primarily stems from how metadata tools like Adobe Photoshop apply information to images, which platforms interpret. Following the expansion of its AI content labelling policies, daily photos shared on Meta’s platforms, such as Instagram and Facebook, were erroneously tagged as ‘Made with AI’.
Initially, the updated labelling will roll out on mobile apps before extending to web platforms. Clicking on the ‘AI info’ tag will display a message similar to the previous label, explaining why it was applied and acknowledging the use of AI-powered editing tools like Generative Fill. Despite advancements in metadata tagging technology like C2PA, distinguishing between AI-generated and authentic images remains a work in progress.
By 2030, the US is expected to face a shortage of 90,000 semiconductor technicians, jeopardising its goal to produce a significant share of the world’s advanced chips. The Biden administration has launched a new programme to develop the domestic chip workforce to address this looming crisis. The initiative, known as the workforce partner alliance, will allocate part of the $5 billion from the National Semiconductor Technology Centre (NSTC) to fund up to ten projects focusing on workforce development.
The NSTC, established under the 2022 Chips and Science Act, will provide grants between $500,000 and $2 million to support these projects. The effort is part of a broader $39 billion investment to boost domestic chipmaking capabilities, with additional funds earmarked for research and development. The new programme marks the first workforce-specific funding opportunity under this landmark legislation.
As the US seeks to expand its semiconductor production, the NSTC aims to build a robust workforce capable of supporting this growth. The administration has already committed substantial funding to major semiconductor manufacturers, and more grants are expected in the coming months. The most recent grant of $6.7 million will support the establishment of a new Florida factory by Rogue Valley Microdevices, focusing on defence and biomedical chip applications.
Despite a significant upswing in Ethereum’s price today, an ICO whale has moved a large amount of its holdings to a centralised exchange. Specifically, 7,000 ETH, valued at $24.28 million, were transferred to the Kraken exchange after 209 days of dormancy. The move has raised concerns among Ethereum investors, especially as it comes amid substantial weekly outflows.
Ethereum has seen the largest outflows since August 2022, with $60.7 million in weekly outflows reported by CoinShares. Over the past two weeks, the total outflows amass $119 million, making Ethereum the worst-performing asset in year-to-date net flows. The year-to-date outflows amount to $25 million, further exacerbating investor worries about the asset’s future performance.
Additionally, the US SEC’s recent postponement of the spot ETH ETF launch process has added to Ethereum’s uncertainty. The SEC’s decision to return the S-1 amendment forms for refiling has fuelled speculation about Ethereum’s future in the market.
Despite these concerns, Ethereum’s price has surged today, reflecting a broader positive movement in the crypto market. However, the ongoing outflows and regulatory delays continue to cast a shadow over the asset’s prospects.
Connecticut is spearheading efforts by developing what could be the nation’s first Citizens AI Academy. The free online resource aims to offer classes for learning basic AI skills and obtaining employment certificates.
Democratic Senator James Maroney of Connecticut emphasised the need for continuous learning in this rapidly evolving field. Determining the essential skills for an AI-driven world presents challenges due to the technology’s swift progression and varied expert opinions. Gregory LaBlanc from Berkeley Law School suggested that workers should focus on managing and utilising AI rather than understanding its technical intricacies to complement the capabilities of AI.
Several states, including Connecticut, California, Mississippi, and Maryland, have proposed legislation addressing AI in education. For instance, California is considering incorporating AI literacy into school curricula to ensure students understand AI principles, recognise its use, and appreciate its ethical implications. Connecticut’s AI Academy plans to offer certificates for career-related skills and provide foundational knowledge, from digital literacy to interacting with chatbots.
Despite the push for AI education, concerns about the digital divide persist. Senator Maroney highlighted the potential disadvantage for those needing more basic digital skills or access to technology. Marvin Venay of Bring Tech Home and Tesha Tramontano-Kelly of CfAL for Digital Inclusion stress the importance of affordable internet and devices as prerequisites for effective AI education. Ensuring these fundamentals is crucial for equipping individuals with the necessary tools to thrive in an AI-driven future.
Microsoft is restructuring its retail strategy in mainland China, consolidating its retail channels amid reports of closing its network of authorised physical retailers. The tech giant did not confirm the closures or specify the number of stores affected but emphasised the need to adapt to changing customer needs.
Microsoft assured its products would remain available in China through retail partners and its website despite not operating physical stores directly in the region. However, the company did not detail which partners would continue to stock its products.
The change of strategy reflects Microsoft’s ongoing efforts to optimise its retail strategy in one of the world’s largest markets, ensuring accessibility and customer satisfaction through diverse channels, despite diplomatic and political challenges and restrictions.
Amazon has recently hired the co-founders and several team members from AI startup Adept in a strategic move to bolster its AI capabilities. Adept’s CEO David Luan and other key employees have joined Amazon. At the same time, the startup will continue to operate independently, with Amazon paying a licensing fee to use some of its technology to automate business functions.
The recruitment is similar to Microsoft’s earlier hiring of Inflection AI’s team, which has drawn regulatory scrutiny. Adept, valued at over $1 billion, has already named a new CEO. Amazon’s recruitment of Adept’s team signals its ambition to advance AI agent tools, an area of focus for major tech labs. The company is also working to update its Alexa voice assistant with generative AI for more complex and responsive interactions.
At Amazon, Luan and others will report to Rohit Prasad, who leads the company’s artificial general intelligence efforts. Previously head of Alexa, Prasad has integrated researchers across Amazon to enhance AI model training. He stated that these new hires will significantly contribute to Amazon’s pursuit of achieving AGI.
