Meta Platforms, Facebook’s parent company, is in talks to integrate its generative AI model into Apple’s newly announced AI system for iPhones. The integration comes as Apple plans to incorporate technology from various AI companies into its devices. There are also reports that Apple is considering a partnership with Google, its long-time search partner.
Additionally, Apple is exploring partnerships with other AI companies, including in regions like China, where OpenAI’s ChatGPT is banned. AI startup Anthropic has been discussing bringing its generative AI to Apple Intelligence with Apple. Though Meta and Anthropic have not commented, and Apple has not responded to requests for comment, these talks, if successful, could significantly expand the reach of these AI technologies.
The financial details of these potential deals remain unclear, but they could involve AI companies selling premium subscriptions through Apple Intelligence. AI search startup Perplexity is also discussing with Apple the incorporation of its generative AI technology. Apple recently announced its AI strategy, aiming to integrate the new Apple Intelligence technology across its apps, including Siri, and differentiate itself from competitors by emphasising privacy.
As China edges closer to the proverbial ‘splinternet’ there is more talk of the advent of AI on the continent. According to IBM, ASI is a hypothetical software-based AI system with an intelligence scope beyond human intelligence, possessing cognitive functions and thinking skills well beyond that of known humans.
According to SoftBank CEO Masayoshi Son, at the implementation level, ASI will bring about real change to our societies in about ten years. The CEO assured investors of his company’s plans to tap in to the trend, pinpointing the company’s majority shareholder portfolio in the chip design firm, Arm.
Similar developments in China see Huawei releasing HarmonyOS, the beta version of a mobile operating system, and rival to Android on the continent. Versions of the software are carded to come to market housed in smartphones, tablets, computers, smartwatches, smart glasses and earbuds by year end. The company also plans to build an ecosystem around the OS. Such technological developments in China further behooves the East and West to approach the table of negotiations as equals in the field of AI and other emerging technologies governance.
The Eurosystem, including the European Central Bank (ECB) and national central banks of the EU area, is advancing the digital euro project aimed to modernize central bank money. Following an initial investigation phase launched in 2021, the ECB’s Governing Council approved a two-year preparation phase starting 18 October 2023 and concluding by 31 October 2025. This phase will finalise the digital euro rulebook, select potential platform and infrastructure providers, and conduct further testing, particularly its offline functionality.
A cornerstone of the digital euro project is “privacy by design” approach. Technological measures like pseudonymisation, hashing, and encryption will ensure that online transactions remain unlinked to specific individuals. Payment service providers will access only the necessary transaction data for EU law compliance, with user consent required for any additional commercial uses. The digital euro is also designed for offline use, allowing payments without an internet connection, akin to cash transactions. This offline functionality will enhance privacy and usability in areas with limited network coverage or during power outages.
Legislative and stakeholder engagement continues in parallel, with the European Parliament and Council of the European Union working on the legislative framework proposed in 2023. Stakeholder involvement ensures the digital euro meets high standards of quality, security, and usability. Fraud prevention remains a priority, with ongoing assessments indicating that current technologies can effectively detect and prevent fraud using pseudonymised information.
By the end of 2025, the ECB will decide whether to proceed further with the digital euro, contingent on the legislative process completion.
Frank McCourt, a US real estate billionaire, aims to acquire TikTok to combat the negative influence of major tech platforms on society. Known for owning the Los Angeles Dodgers and Olympique de Marseille, McCourt has been vocal about the harm these platforms inflict, particularly on children. Speaking at the Collision tech conference in Toronto, he emphasised the manipulative nature of social media algorithms, linking them to societal chaos and political polarisation.
McCourt’s concern stems from the detrimental impact of social media on mental health, especially among children, citing rising anxiety, depression, and youth suicides. His solution is a ‘new internet’ based on an open-source, decentralised protocol where users control their own data, a vision he calls Project Liberty. With its vast user base of young people, acquiring TikTok would significantly advance this initiative. Project Liberty has garnered support from internet pioneer Tim Berners-Lee and NYU professor Jonathan Haidt.
The acquisition bid comes amid US government pressures on TikTok to divest from Chinese ownership due to national security concerns. While the future of TikTok’s ownership remains uncertain, McCourt hopes this situation will raise awareness about data privacy issues across all platforms, emphasising the need for user control over personal data to preserve democratic values.
The EU antitrust regulators have accused Apple of violating the bloc’s tech rules, potentially leading to a substantial fine. The European Commission, responsible for antitrust and technology regulation, announced its preliminary findings following an investigation initiated in March. That move marks the first charge under the Digital Markets Act (DMA), a law designed to curb Big Tech’s dominance and foster fair competition. Apple could face fines of up to 10% of its global annual turnover if it fails to address the concerns.
EU’s antitrust chief, Margrethe Vestager, highlighted issues with Apple’s new terms, which allegedly restrict app developers’ ability to communicate freely with their users and establish contracts. Apple maintains that it has made several changes to comply with the DMA based on feedback from app developers and the Commission. However, the Commission criticised Apple’s business terms, particularly allowing app developers to redirect customers to external websites to complete transactions and the fees charged for initial customer acquisition through the App Store.
The Commission is also investigating Apple’s new contractual requirements for third-party app developers and app stores. Key issues include the core technology fee, the multi-step process to download alternative app stores on iPhones, and eligibility criteria for developers to offer alternative app stores or distribute apps directly. Apple’s recent fee implementations in the EU have drawn criticism, notably from ‘Fortnite’ creator Epic Games. Additionally, Vestager criticised Apple’s delay in launching AI-powered features in the EU, which the company attributed to the DMA, suggesting that Apple might consider its AI integration anti-competitive.
PayPal has appointed Srini Venkatesan as its new Chief Technology Officer (CTO) to lead its artificial intelligence initiatives. Venkatesan will be in charge of areas such as AI and machine learning, information security, and product engineering. In his previous position at Walmart, Venkatesan developed platforms to support the retail giant, including aspects of the Walmart+ subscription service. He has also worked at Yahoo and eBay among others.
Why is this important?
Like others in the finance field, PayPal has sought to embrace AI to improve its services. In January, the company announced new AI-driven tools, including some to make payment checkouts smoother. However, other tools use buying history, instead of browsing history, to target clients.
‘Smart Receipts’ uses buying history to recommend products, cashback and other deals on receipts. Similarly, ‘Advanced Offers Platform’ uses AI to deliver targeted promotions based on the customer’s purchase history with any previous merchant. PayPal says it is shifting from general ads to personalised ‘offers’, improving the customer experience.
In an article in PayPal’s newsroom, the company said it is adding simple privacy controls to let customers choose whether to share their data with merchants for personalised offers. However, given that browsing targeted advertising has already caused privacy concerns, it is likely that buying history will do so too. Venkatesan will be expected to implement the tech and answer to these concerns in his new role.
Oracle has announced it will be investing $1 billion over the next decade in AI and cloud computing in Spain to cater to the growing demand for its services in the country. This investment will be used to establish a new cloud region enabling customers to transition workloads from their data centres to Oracle Cloud Infrastructure.
Additionally, it will assist in compliance with regulations such as the EU’s Digital Operational Resilience Act (DORA) and the European Outsourcing Guidelines. This initiative marks Oracle’s third cloud region in Madrid in collaboration with Telefonica España as project partner. Albert Triola, the head of Oracle Spain, emphasised the company’s dedication to supporting organisations in Spain across various sectors and sizes, aiming to accelerate the adoption of cloud technologies to enhance business performance.
José Luis Escrivá, Spain’s minister for digital transformation and public administration noted that this investment will empower Spanish enterprises and public sector entities to innovate with AI and accelerate their digital transformation process.
Why does it matter?
Oracle’s optimistic forecast for fiscal 2025 revenue growth surpassed analysts’ expectations thereby reflecting the growing demand for its AI-driven cloud services.
Furthermore, Oracle announced collaborations with OpenAI and Google Cloud with the objective of expanding its cloud infrastructure offerings to customers thus showing its commitment to enhancing its cloud services portfolio.
Huawei Technologies announced significant advancements in operating systems and AI, achieving in 10 years what took the US and Europe 30 years. Richard Yu, chairman of Huawei’s Consumer Business Group, highlighted these achievements at a developer conference in Dongguan.
Huawei’s Harmony operating system is now on over 900 million devices, which marks a substantial progress since its launch in 2019 when US restrictions cut Huawei off from Google’s Android support. Yu noted that Huawei’s Ascend AI infrastructure is now the second most popular, following Nvidia.
Why does it matter?
The rise of the Internet of Things has provided Huawei an opportunity to surpass long-time Western dominance in software. Additionally, Huawei’s smartphone business has rebounded with the Mate 60, featuring a new China-made chip. Sales of Harmony-equipped smartphones increased by 68% in the first five months of the year. In Q1 2024, HarmonyOS became the second best-selling mobile OS in China, overtaking Apple’s iOS with a 17% market share.
TikTok will be sued again by the US Department of Justice (DoJ) in a consumer protection lawsuit against ByteDance’s TikTok later this year, focusing on alleged children’s privacy violations. The incentive for the legal move comes on behalf of the Federal Trade Commission (FTC), but the DoJ will not pursue allegations that TikTok misled US consumers about data security, specifically dropping claims that the company failed to inform users that China-based employees could access their personal and financial information.
The decision suggests that the primary focus will now be on how TikTok handles children’s privacy. The FTC had referred to the DoJ a complaint against TikTok and its parent, ByteDance, concerning potential violations of children’s privacy, stating that it investigated TikTok and found evidence suggesting they may be breaking the Children’s Online Privacy Protection Act. The federal act requires apps and websites aimed at kids to get parental consent before collecting personal information from children under 13.
Amazon plans to overhaul its Alexa service with a new project known internally as ‘Banyan,’ aiming to integrate generative AI and introduce two service tiers. The initiative, called ‘Remarkable Alexa,’ could include a monthly fee of around $5 for the premium version, which would offer advanced capabilities like composing emails and placing orders from a single prompt. That would mark Alexa’s first major update since its 2014 launch.
The project is driven by Amazon’s need to revitalise Alexa, which has struggled to turn a profit and compete with AI advancements from companies like Google, Microsoft, and Apple. CEO Andy Jassy has prioritised this update, setting an internal deadline for August. The new Alexa aims to provide more intelligent, personalised assistance, building on generative AI already integrated into over half a billion devices worldwide.
Despite the ambitious plans, some Amazon employees view the project as a ‘desperate attempt’ to save Alexa, citing challenges such as software inaccuracies and poor morale within the team. While Amazon hopes the AI-powered Alexa will drive more significant sales and enhance home automation, the project’s success depends on customer willingness to pay for features currently offered for free and the effectiveness of the new technology.
