Japan has passed a new law requiring tech giants like Google and Apple to allow access to third-party smartphone apps and payment systems on their platforms, threatening substantial fines for non-compliance. Like the EU’s Digital Markets Act, this legislation mandates fair access to operating systems, browsers, and search engines, with fines reaching up to 30% of revenue for continued anti-competitive behaviour.
The law was approved by Japan’s National Diet with no amendments and aimed to align Japan’s digital market regulations with those of the United States and Europe. That move is intended to foster fair competition and improve the competitive environment for software, such as app stores while ensuring consumer security. The law is set to take effect by the end of 2025.
Japan’s Fair Trade Commission highlighted the necessity for this new legal framework to address the dominance of major tech companies. Although the law does not explicitly name companies, it targets those like Google and Apple, often seen as a ‘duopoly’ in the smartphone app market. The EU’s similar regulatory efforts, particularly the Digital Markets Act, have faced criticism from Apple regarding potential risks to user privacy and security.
Samsung Electronics chairman Jay Y. Lee recently held high-level meetings with Meta, Qualcomm, and Amazon leaders to discuss AI, cloud services, and chip technology cooperation. Lee’s discussions with Meta’s Mark Zuckerberg, held at Zuckerberg’s home, included AI and virtual and augmented reality topics. In separate meetings, Lee explored semiconductor collaboration with Amazon CEO Andy Jassy and Qualcomm CEO Cristiano Amon, focusing on memory chips for Amazon’s data centres, cloud services, and chip manufacturing for Qualcomm’s mobile processors.
These discussions are part of Lee’s two-week visit to the United States and will inform Samsung’s upcoming company-wide strategic meeting at the end of June. The meetings aim to bolster Samsung’s position in the competitive semiconductor market, particularly in high-end memory for AI, where Samsung has faced challenges. The company’s newly appointed head of the semiconductor division has emphasised the need for a collective effort to navigate these challenges.
Samsung maintains strong relationships with these tech giants, supplying chips to Amazon for various applications and partnering on TV, mobile, and content projects. With Qualcomm, Samsung’s high-end smartphones feature Snapdragon mobile processors, and the partnership now extends to AI-enabled PCs. Meta, another key client, has collaborated with Samsung on projects like the Gear VR headset and foldable smartphones, showcasing the deep integration of their technologies.
Samsung Electronics is stepping up its game in the AI chip market by streamlining its contract manufacturing process to offer clients a comprehensive, one-stop shop. By integrating its top-tier memory chip, foundry, and chip packaging services, the tech giant aims to accelerate AI chip production by about 20%. The new approach allows clients to work with a single communication channel, significantly reducing the production time for AI chips. At a recent San Jose, California event, Siyoung Choi, President and General Manager of Samsung’s Foundry Business, highlighted the transformative impact of generative AI on the technology landscape.
Looking ahead, Samsung projects the global chip industry revenue to reach $778 billion by 2028, mainly driven by the demand for AI chips. Executive Vice President of Foundry Sales and Marketing, Marco Chisari, echoed this optimism, agreeing with OpenAI CEO Sam Altman’s predictions of a sharp increase in AI chip demand. Unlike other companies, Samsung’s unique combination of selling memory chips, offering foundry services, and designing chips under one roof has often been seen as a competitive disadvantage. However, the rising demand for highly integrated AI chips that process large datasets quickly and efficiently is turning this setup into a competitive advantage.
Samsung is also making strides in chip architecture with its cutting-edge gate-all-around (GAA) technology. The advanced transistor architecture improves chip performance while reducing power consumption, which is crucial for developing more powerful AI chips as they become smaller. While other competitors, including TSMC, are also advancing in GAA technology, Samsung has a head start and plans to mass-produce its second-generation 3-nanometre chips using GAA later this year. Furthermore, Samsung unveiled its 2-nanometre chipmaking process for high-performance computing chips, with mass production scheduled for 2027, positioning itself at the forefront of the AI chip revolution.
As the market for AI applications in specific domains keeps growing, startup LinqAI has found its niche within the financial sector. This platform seeks to make AI tools that are able to adapt to any business environment and take care of simpler tasks like facilitating research or synthesising data.
LinqAI presents the advantage of being trained on materials and large language models (LLMs) relevant to their sector, making this tool more adapted to client’s use cases. It will be entering a field which rapidly adapted to the use of AI. Bloomberg has an AI tool to summarise earning calls, while S&P uses AI to extract relevant information from documents. However, co-founder Jacob Chanyeol Choi says his AI tool goes beyond competitors, introducing a company-specific data-gathering system which will ‘seamlessly integrate with a company’s data ecosystem’.
The tool’s website commits to a ‘no-harvesting’ data policy and transparency with its community. ‘we do not collect or utilise user data for any purposes outside of the immediate functional requirements of our AI tools’, it says.
LinqAI was recently able to secure USD 6.6 million in funding from various organisations and investment firms.
Oracle’s stock soared nearly 9% on Wednesday, propelled by surging demand for its cost-effective cloud infrastructure services, particularly from AI applications. The surge could boost the company’s market valuation by over $28 billion, adding to its current $340 billion valuation. With an 18% increase in shares since the beginning of the year, Oracle is capitalising on the momentum of its cloud infrastructure unit, which offers computing and storage services to businesses at competitive prices, positioning itself against major rivals like Google, Microsoft, and Amazon.
Oracle’s cloud infrastructure has garnered attention from AI startups, including Elon Musk’s xAI, thanks to its affordability compared to competitors. In a strategic move, Oracle recently announced partnerships with ChatGPT-maker OpenAI and Google Cloud to expand its cloud infrastructure offerings. That collaboration strengthens Oracle’s position as an AI platform and extends its database services distribution, as Evercore analyst Kirk Materne highlighted.
While Oracle’s forward earnings estimates stand at 19.59 times, lower than those of its major competitors, its fourth-quarter results missed expectations. Due to increasing competition from more cost-effective alternatives, the company faces challenges in its legacy database and enterprise resource planning (ERP) software business. Morningstar analyst Julie Sharma suggests that Oracle may experience customer churn as businesses undergo significant digital transformations, opting for cheaper database and ERP solutions over Oracle’s offerings.
Particle, a news-reader startup developed by former Twitter engineers, is partnering with publishers to navigate the evolving landscape of news consumption in the AI era. By leveraging AI technology, Particle aims to provide news summaries from various publishers through its app, offering readers a comprehensive understanding of current events from multiple perspectives. That approach seeks to address concerns within the publishing industry about potential revenue loss due to AI-driven news summaries.
Now, Particle has teamed up with Reuters to explore new business models in a significant move. The startup has subscribed to Reuters newswire to enhance its news delivery capabilities. Additionally, Particle secured $10.9 million in Series A funding led by Lightspeed Venture Partners, with investments from media giant Axel Springer. These partnerships and investments underscore Particle’s commitment to collaborating with publishers to address their needs and goals in the rapidly evolving media landscape.
Particle’s co-founder, Sara Beykpour, emphasises the startup’s focus on delivering value to news consumers beyond AI summaries. With a mission to help readers cut through the noise and understand the news faster, Particle offers a personalised news experience while ensuring exposure to diverse viewpoints. By presenting news stories holistically and integrating perspectives from multiple outlets, Particle aims to combat information overload and mitigate media bias.
Why does it matter?
Despite its innovative approach, Particle has yet to finalise its business model. The startup actively engages with publishers to develop a sustainable model that benefits readers and publishers. Possibilities include revenue sharing, advertising, and more, with input from industry stakeholders shaping the future direction of Particle’s business strategy.
Brazil’s government has enlisted OpenAI’s services to streamline the assessment of thousands of lawsuits using AI, aiming to mitigate costly court losses that have burdened the federal budget. Through Microsoft’s Azure cloud-computing platform, OpenAI’s AI technology, including ChatGPT, will identify lawsuits requiring prompt government action and analyse trends and potential focus areas for the solicitor general’s office (AGU).
The AGU revealed that Microsoft would facilitate the AI services from OpenAI, though the exact cost of Brazil’s procurement remains undisclosed. The initiative responds to the escalating financial strain caused by court-ordered debt payments, which are anticipated to reach 70.7 billion reais ($13.2 billion) next year, excluding smaller claims. The surge from 37.3 billion reais in 2015, equivalent to about 1% of GDP, surpasses government expenditures on unemployment insurance and wage bonuses for low-income earners by 15%.
While the AGU has not clarified the reasons behind Brazil’s mounting court expenses, it assures that the AI project will not supplant human efforts but enhance efficiency and precision, all under human supervision. This move aligns with broader governmental efforts, including releasing 25 million reais in supplementary credits for AGU in March to implement strategic IT projects and bolster operational capacities.
Former US President Donald Trump has made a declaration, stating that he wants all remaining Bitcoin to be mined within the United States. The announcement, made on June 12, 2024, is the latest in a series of controversial statements from Trump, who has previously expressed skepticism about cryptocurrencies.
Trump’s proclamation comes at a time when Bitcoin and other cryptocurrencies are facing increased scrutiny from governments and regulatory bodies worldwide. The former president emphasised the need for the US to control Bitcoin mining operations to ensure the country’s dominance in the digital currency market and to safeguard national security.
Bitcoin mining is the process by which new bitcoins are created and transactions are verified on the blockchain. Miners use powerful computers to solve complex mathematical problems, which, in turn, secure the network and validate transactions. That process requires significant computational power and energy resources. Currently, the majority of Bitcoin mining operations are concentrated in countries like China, Russia, and Kazakhstan, where electricity is relatively cheap. However, the geopolitical tensions and concerns over the environmental impact of Bitcoin mining have prompted calls for a shift in mining operations to more stable and regulated regions.
The cryptocurrency community has had mixed reactions to Trump’s statement. Some industry leaders welcome the idea of increasing Bitcoin mining operations in the US, citing the potential benefits of regulatory clarity and increased investment in renewable energy sources. They argue that the US has the technological expertise and infrastructure to support large-scale mining operations sustainably. However, others express concern over the potential for increased government intervention and regulation in the cryptocurrency space. They fear that such measures could stifle innovation and contradict the decentralized spirit of Bitcoin and other cryptocurrencies.
Why does it matter?
Trump’s rationale for wanting Bitcoin mining to be relocated to the US centers around three main points – economic opportunity, national security, and technological leadership.
Economic Opportunity: Trump argues that bringing Bitcoin mining to the US would create jobs and stimulate economic growth in the tech and energy sectors. By harnessing the country’s technological infrastructure and renewable energy sources, he believes the US could become a global leader in cryptocurrency mining.
National Security: By controlling Bitcoin mining operations, Trump asserts that the US can prevent foreign adversaries from leveraging cryptocurrencies for illicit activities, such as money laundering and financing terrorism. He also contends that having a significant portion of the global Bitcoin supply mined domestically would enhance the country’s financial stability.
Technological Leadership: Trump envisions the US leading the world in blockchain technology and digital currencies. By fostering a robust Bitcoin mining industry, he believes the country can spur innovation and set global standards for cryptocurrency regulation and adoption.
MediaTek, a leading semiconductor company in Taiwan, is collaborating with Microsoft to design an ARM-based chip specifically for its Windows operating system AI-powered laptops. The strategic partnership marks a significant move in the tech industry. Last month, Microsoft unveiled a new generation of laptops featuring chips designed with ARM Holdings technology, providing the necessary power to run advanced AI applications. These applications are considered the future of consumer computing by Microsoft executives.
MediaTek’s new chip is set to be integral in this effort and is expected to bring substantial advancements in processing power and efficiency. That collaboration underscores the growing demand for high-performance, energy-efficient chips tailored for AI applications. Their ARM-based chip is designed to optimize AI tasks, leveraging ARM’s architecture known for its power efficiency and performance scalability. The development aligns with the industry trend of integrating specialized hardware to handle AI workloads more effectively, reducing the reliance on general-purpose CPUs.
For Microsoft, this partnership with MediaTek represents a strategic move to strengthen its position in the competitive AI hardware market. By incorporating MediaTek’s advanced chip technology, Microsoft aims to offer more capable AI laptops, appealing to both consumer and enterprise markets. The collaboration also takes direct aim at Apple, which has been using its own ARM-based chips for Mac computers for roughly four years. Also, Microsoft’s decision to optimise Windows for ARM could pose a significant challenge to Intel’s long standing dominance in the PC market. For decades, Windows machines have relied on chip architectures developed by Intel and AMD. MediaTek’s PC chip is expected for release late next year, coinciding with the end of Qualcomm’s exclusive deal to supply ARM-based chips for Windows laptops.
Why does it matter?
Enhanced AI capabilities: The integration of MediaTek’s specialised chip will enable Microsoft’s AI laptops to perform more complex AI tasks with greater efficiency and speed. That advancement is crucial as AI applications become more sophisticated and demand higher computational power.
Energy efficiency: ARM-based chips are known for their power efficiency, which means that AI laptops equipped with these chips will likely have longer battery life and reduced energy consumption. This is particularly important for users who require high performance without sacrificing mobility.
Market innovation: The partnership could set a new standard in the AI hardware market, encouraging other tech companies to develop and integrate specialised chips for AI applications. That could lead to a surge in innovation, driving the development of more advanced and capable AI devices.
Competitive edge: For both MediaTek and Microsoft, this collaboration provides a competitive edge. MediaTek can showcase its capacities in developing cutting-edge chips, while Microsoft can differentiate its AI laptops in a crowded market by offering superior performance and efficiency.
Trading volumes of fan tokens have also increased dramatically, with recent figures showing over $170 million in activity, compared to $25 million to $57 million in January. The total market value of listed fan tokens now stands around $413 million. The surge comes as the sector faces a critical test this summer, offering perks like raffle entries, early ticket access, and voting on minor team decisions.
Supporters of fan tokens praise them as a practical use of cryptocurrency, while critics point out the potential risks and speculative nature of these assets. Chiliz emphasises that fan tokens are intended for engagement rather than investment. Despite this, trading patterns often reflect traditional financial behaviours, with increased activity before major events and declines once tournaments begin.
Club-linked tokens have grown slower than national teams, but the number of fan tokens has increased. Notable launches include tokens for Tottenham Hotspur and Benfica and Paris Saint-Germain’s move to become a network validator for the Chiliz Chain blockchain. Some clubs, like Watford FC, offer digital equity tokens that provide unique perks, blending fan engagement with investment opportunities.
