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Malaysia seeks Chinese investment for data centres

Malaysia is in talks with potential Chinese investors about building data centres as part of its strategy to attract high-quality investments, according to Economy Minister Rafizi Ramli. Rafizi stated in an interview that the government aims to enhance its infrastructure to leverage the AI boom.

In the past year, major US tech companies such as Microsoft, Google, and Nvidia have announced plans to establish data centres in Malaysia. Chinese firms are also interested in developing additional facilities to support local tech companies seeking to expand into the Southeast Asian market, Rafizi noted.

Rafizi emphasised Malaysia’s goal to expedite its transition from the back end to the front end of the semiconductor industry, focusing on integrated circuit design and data centres. He clarified that discussions with Chinese companies have not included using their Malaysian operations to bypass US tariffs.

Experts join Regulating AI’s new advisory board

Regulating AI, a non-profit organisation dedicated to promoting AI governance, has announced its advisory board’s formation. Board members include notable figures such as former US Senator Cory Gardner, former Bolivian President Jorge Quiroga, and former Finnish Prime Minister Esko Aho. The board aims to foster a sustainable AI ecosystem that benefits humanity while addressing potential risks and ethical concerns.

The founder of Regulating AI, Sanjay Puri, expressed his excitement about the diverse expertise and perspectives the new board members bring. He emphasised the importance of their wisdom in navigating the complexities of the rapidly evolving AI landscape and shaping policies that balance innovation with ethical considerations and societal well-being.

One of the organisation’s key initiatives is developing a comprehensive AI governance framework. That includes promoting international cooperation, advocating for diverse voices, and exploring sector-specific AI implications. Former President of Bolivia Jorge Quiroga highlighted the transformational power of AI and the need for effective regulation that considers the unique challenges of developing nations.

Regulating AI aims to build public trust, align international standards, and empower various stakeholders through its board. Former US Senator Gardner underscored the necessity of robust regulatory frameworks to ensure AI is developed and deployed responsibly, protecting consumer privacy, preventing algorithmic bias, and upholding democratic values. The organisation also seeks to educate and raise awareness about AI regulations, fostering discussions among experts and policymakers to advance understanding and implementation.

Meta launches AI chatbot in India, rivaling Google’s Gemini

Meta has officially introduced its AI chatbot, powered by Llama 3, to all users in India following comprehensive testing during the country’s general elections. Initially trialled on WhatsApp, Instagram, Messenger, and Facebook since April, the chatbot is now fully accessible through the search bars in these apps and the Meta.AI website. Despite supporting only English, its functionalities are on par with other major AI services like ChatGPT and Google’s Gemini, including tasks such as suggesting recipes, planning workouts, writing emails, summarising text, recommending Instagram Reels, and answering questions about Facebook posts.

The launch aims to capitalise on India’s vast user base, notably the 500 million WhatsApp users, by embedding the chatbot deeper into the user experience. However, some limitations have been observed, such as the chatbot’s inability to fully understand the context of group conversations, except in direct mentions or replies. Moreover, while it cannot be disabled, users can choose not to interact with it during searches.

Despite its capabilities, Meta AI has faced criticisms for biases in its image generation, often depicting Indian men with turbans and producing images of traditional Indian houses, which Meta has acknowledged and aims to address through ongoing updates. The launch coincides with Google releasing its Gemini app in India, which, unlike Meta’s chatbot, supports multiple local languages, potentially giving Google a competitive advantage in the linguistically diverse Indian market.

Why does it matter?

In summary, Meta’s rollout of its English-only AI chatbot in India is a strategic effort to leverage its extensive user base by offering robust functionalities similar to established competitors. While it faces initial limitations and biases, Meta is actively working on improvements. The concurrent release of Google’s Gemini app sets up a competitive landscape, underscoring the dynamic and evolving nature of AI services in India.

AI startup Etched to produce $120M worth specialised chip

Etched, an AI startup based in San Francisco, announced that it secured $120 million, aiming to create a specialised kind of chip tailored to run a specific type of AI model commonly used by OpenAI’s ChatGPT and Google’s Gemini.

Unlike Nvidia, which dominates the market for server AI chips with a roughly 80% market share, Etched aims to create a specialized processor optimized for running inference tasks. The produced chip would focus on generating content and responses, which is particularly suited for transformer-based AI models. The company’s CEO, Gavin Uberti, sees this as a strategic bet on the longevity of transformer models in the AI landscape.

In Etched’s funding round, key investors include former PayPal CEO Peter Thiel and Replit CEO Amjad Masad. The startup has also partnered with Taiwan Semiconductor Manufacturing Co. (TSMC) to fabricate its chips. Uberti highlighted the importance of the funding to cover the costs associated with sending chip designs to TSMC and manufacturing the chips, a process known as ‘taping out.’

While Etched did not disclose its current valuation, its $5.4-million seed-funding round in March 2023 valued the company at $34 million. The success of its specialised chip could position Etched as an important player in the AI chip market, provided transformer-based AI models continue to be prevalent in the industry.

Italian watchdog tests AI for market oversight

Italy’s financial watchdog, Consob, has begun experimenting with AI to enhance its oversight capabilities, particularly in the initial review of listing prospectuses and the detection of insider trading. According to Consob, these AI algorithms aim to swiftly identify potential instances of insider trading, which traditionally requires significantly more time when conducted manually.

The agency reported that its AI algorithms can detect errors in just three seconds, a task typically taking a human analyst at least 20 minutes. These efforts were part of testing conducted last year using prototypes developed in collaboration with Scuola Normale Superiore University in Pisa, alongside an additional model developed independently.

Consob views the integration of AI as pivotal in enhancing the effectiveness of regulatory controls to detect financial misconduct. The next phase involves transitioning from prototype testing to fully incorporating AI into Consob’s regular operational procedures. That initiative mirrors similar efforts by financial regulators globally who are increasingly leveraging AI to bolster consumer protection and regulatory oversight.

For instance, in the United Kingdom, the Financial Conduct Authority (FCA) has utilised AI technologies to combat online scams and protect consumers. That trend underscores a broader international movement within regulatory bodies to harness AI’s potential in safeguarding market integrity and enhancing regulatory efficiency.

Oracle warns of significant financial impact from potential US TikTok ban

Oracle has cautioned investors that a potential US ban on TikTok could negatively impact its financial results. A new law signed by President Biden in April could make it illegal for Oracle to provide internet hosting services to TikTok unless its China-based owners meet certain conditions. Oracle warned that losing TikTok as a client could harm its revenue and profits, as TikTok relies on Oracle’s cloud infrastructure for storing and processing US user data.

Analysts consider TikTok one of Oracle’s major clients, contributing significantly to its cloud business revenue. Estimates suggest Oracle earns between $480 million to $800 million annually from TikTok, while its cloud unit generated $6.9 billion in sales last year. The cloud business’s growth, driven by demand for AI work, has boosted Oracle’s shares by 34% this year.

Why does it matter?

The new law requires TikTok to find a US buyer within 270 days or face a ban, with a possibility of extension. TikTok, which disputes the security concerns, has sued to overturn the law. It highlights its collaboration with Oracle, termed ‘Project Texas,’ aimed at safeguarding US data from its Chinese parent company, ByteDance. Despite this, Oracle has remained discreet about its relationship with TikTok, not listing it among its key cloud customers and avoiding public discussion.

EvolutionaryScale secures $142 million to enhance AI applications in biology

AI startup EvolutionaryScale has secured $142 million in seed funding, led by investors including Nat Friedman, Daniel Gross, and Lux Capital. Both Amazon Web Services (AWS) and NVIDIA’s venture capital arm participated in this substantial funding round. Lux Capital’s co-founder Josh Wolfe likened EvolutionaryScale’s achievements to a ‘ChatGPT moment for biology,’ highlighting their development of a groundbreaking large language model capable of designing new proteins and biological systems.

EvolutionaryScale aims to deploy its AI across diverse applications, from accelerating drug discovery processes to engineering microbes that can degrade plastic pollution. The company’s chief scientist, Alex Rives, emphasised the growing significance of AI in creating innovative biological solutions. That aligns with broader industry trends where AI is increasingly pivotal in advancing biotech and pharmaceutical research.

However, concerns have been raised regarding the potential misuse of generative AI in bioweapons development. Despite these ethical considerations, EvolutionaryScale plans to use its newly secured funding to train its AI models further and expand its team for collaborations within the biotech sector. They have also released the ESM3 models, with the smaller variant open-sourced for non-commercial research, while AWS and NVIDIA will offer the larger ESM3 commercially.

Why does it matter?

One notable achievement highlighted by EvolutionaryScale involves engineering a novel fluorescent protein using their ESM3 model. That protein represents a significant departure from naturally occurring variants, a process typically requiring nature millions of years to evolve. The company’s advancements underscore the transformative potential of AI in pushing the boundaries of biological innovation.

EU charges Microsoft over Teams bundling

EU antitrust regulators have accused Microsoft of illegally bundling its Teams chat and video app with its Office product suite, claiming the company’s recent efforts to separate the two were insufficient. The European Commission stated that Microsoft breached antitrust rules by tying Teams to its popular Office 365 and Microsoft 365 suites, which stifled competition.

The regulatory action follows a 2020 complaint by Slack, a rival workspace messaging app owned by Salesforce. Microsoft introduced Teams to Office 365 in 2017 at no extra cost, replacing Skype for Business, and its use surged during the pandemic due to its video conferencing capabilities.

The European Commission has preliminarily determined that Microsoft’s changes don’t adequately address the competition concerns and that more actions are needed. Microsoft has expressed willingness to work with the EU regulators to find acceptable solutions.

India’s digital currency usage plummets

According to insider sources, India’s digital currency, the e-rupee, has seen a sharp decline in usage, dropping to just one-tenth of its peak usage in December. The Reserve Bank of India (RBI) launched the e-rupee in a pilot program in December 2022, aiming to provide a digital alternative to physical cash. By December 2023, the pilot had successfully reached a target of 1 million daily retail transactions, largely driven by user incentives and partial salary disbursements to bank employees via the e-rupee. However, daily transactions have plummeted to about 100,000 since the incentives waned.

The transaction drop highlights a need for more organic demand for the e-rupee. Sources involved in the project indicated that the remaining transactions are primarily due to banks continuing to disburse employee benefits through digital currency. At the end of each month, this practice temporarily boosts transaction numbers to between 250,000 and 300,000 per day. Despite the earlier push to test the system’s resilience at scale, the RBI is now focused on refining the technology and developing practical use cases for the e-rupee rather than expanding the pilot rapidly.

The challenge faced by the e-rupee is common. A survey by the Bank of International Settlements found that among 86 central banks, a third are piloting a central bank digital currency (CBDC). Even countries that have launched CBDCs, such as the Bahamas and Jamaica, have yet to experience much success. The Federal Reserve Bank of Kansas City noted that consumer adoption of CBDCs requires more than just the technology itself; it needs to offer additional value compared to traditional cash. As the RBI continues developing the e-rupee, the focus will be on creating compelling use cases that encourage widespread adoption.

Shopify launches AI chatbot Sidekick

Shopify is launching its new AI chatbot, ‘Sidekick,’ in early access as part of its 2024 Summer Edition updates. Sidekick, initially revealed last year, is designed to assist merchants with tasks such as creating discount codes, generating store reports, and suggesting blog post ideas. Currently, Sidekick is available to merchants with English stores in North America, but Shopify plans to expand its availability to other languages and regions.

In addition to Sidekick, Shopify announced several other AI tools to improve merchant efficiency. One notable feature is AI-powered product categorisation, which helps merchants by automatically suggesting taxonomy for product listings, making items more discoverable. Another tool provides suggested replies for customer chats in Shopify Inbox, although these replies need to be finalised by the merchant. Shopify is considering allowing AI to handle customer chats independently in the future.

Shopify is also enhancing its AI-powered image generator, which was launched in January, by integrating it into its iOS and Android apps and expanding its use within the Shopify admin. Over the past six months, Shopify merchants have saved over one million AI-generated images, highlighting the tool’s popularity and effectiveness.