Undersea cable damaged between Latvia and Sweden

A fibre optic cable running under the Baltic Sea between Latvia and Sweden sustained significant damage, likely due to external factors, according to Latvian authorities. The incident prompted NATO to deploy patrol ships and launch a coordinated investigation with Sweden, where the Security Service seized control of a vessel as part of its probe. Latvian Prime Minister Evika Silina confirmed that her government is collaborating with NATO and neighboring Baltic Sea countries to determine the cause.

Senior prosecutor Mats Ljungqvist stated that investigators are conducting several actions but refrained from disclosing details due to the ongoing preliminary inquiry.

NATO’s recently launched ‘Baltic Sentry’ mission, involving naval and aerial assets, aims to safeguard critical infrastructure in the region following a series of incidents affecting cables, pipelines, and telecom links since Russia’s invasion of Ukraine in 2022. The project also includes the deployment of new technologies, including a small fleet of naval drones. Swedish Prime Minister Ulf Kristersson also emphasized close cooperation with NATO and Latvia in response to the situation.

The damaged cable, located in Sweden’s exclusive economic zone, connects Latvia’s Ventspils to Sweden’s Gotland island. The Latvian State Radio and Television Centre (LVRTC), which operates the cable, reported switching communications to alternative routes and is contracting a repair vessel. Repairs are expected to proceed more quickly than those for gas pipelines or power cables, as fibre optic cables in the Baltic Sea are typically restored within weeks.

This incident follows last month’s damage to the Finnish-Estonian Estlink 2 power line and telecom cables, reportedly caused by a Russian tanker dragging its anchor. Finnish and Swedish leaders underscored the importance of bolstering the protection of critical undersea infrastructure in the Baltic Sea. NATO also stated it reserves the right to act against ships deemed security risks while continuing to monitor the situation closely.

Stargate venture to support OpenAI, according to FT.

Stargate, a new joint venture formed by OpenAI, SoftBank, and Oracle, aims to build data centres across the US to support the growing demands of AI. According to a report by the Financial Times on Thursday, these data centres will be dedicated solely to OpenAI, the company behind the popular ChatGPT. The collaboration between these tech giants underscores the increasing importance of robust infrastructure to power the next wave of AI innovation.

The exclusive focus on OpenAI’s needs comes when AI technologies rapidly expand, with the demand for high-performance computing capabilities soaring. The partnership will allow OpenAI to scale its operations and provide the necessary computing power for its cutting-edge AI models. As companies worldwide race to develop more advanced AI tools, the infrastructure provided by Stargate is expected to play a crucial role in supporting the next generation of AI services.

Oracle and SoftBank’s involvement brings significant expertise in cloud infrastructure and global telecom, making the venture a powerful alliance in the competitive AI landscape. The project highlights the growing intersection of cloud computing, data storage, and AI as companies like OpenAI push the boundaries of what AI can achieve.

Samsung unveils AI-powered Galaxy S25 and slimmer models

Samsung Electronics has introduced its latest Galaxy S25 smartphones, powered by Qualcomm’s chips and Google’s AI model. With a competitive pricing strategy, the Galaxy S25 series remains in the range of $799 to $1,299, aiming to boost sales amidst fierce competition from Apple and other Chinese manufacturers. The release, which includes a preview of a slimmer Galaxy S25 Edge model, comes as Samsung seeks to regain market share after losing ground in the premium smartphone sector last year.

While Samsung boasts advanced AI features, analysts note that distinguishing its in-house voice assistant, Bixby, could prove challenging. Industry expert Thomas Husson remarked that without a standout application that leverages AI capabilities effectively, convincing consumers to choose an AI-based smartphone might be difficult. Despite this, the new Galaxy S25 is designed to provide a more personalised user experience, including features like the ‘Now Brief’ service, which offers tailored recommendations based on stored data and enhances user convenience.

In a notable shift, Samsung opted for Qualcomm’s Snapdragon 8 Elite Mobile Platform for the entire Galaxy S25 lineup, moving away from its own Exynos chips. However this change may impact Samsung’s chip business, as the mobile division has been a significant customer for its semiconductor products. Following the announcement, Samsung shares dipped by 1.1%, trailing the overall market performance. The company’s sell-through of the new series is crucial, particularly as sales of its foldable phones have stagnated amid stiff competition from Chinese rivals.

Preliminary fourth-quarter results from Samsung indicated profits fell short of expectations due to high chip development costs and increasing competition in the smartphone market. Moving forward, Samsung plans to use its Exynos chips in upcoming foldable devices, highlighting the ongoing strategic shifts to adapt to rapidly changing market conditions.

ByteDance boosts AI spending to strengthen global presence

ByteDance, the Chinese tech giant behind TikTok, has allocated over 150 billion yuan ($20.64 billion) for capital expenditure this year, with a significant focus on AI, according to sources familiar with the matter. About half of the investment will support overseas AI infrastructure, including data centres and networking equipment. Beneficiaries of this spending are expected to include chipmakers Huawei, Cambricon, and US supplier Nvidia, although ByteDance has denied the accuracy of the claims.

The investment aims to solidify ByteDance’s AI leadership in China, where it has launched over 15 standalone AI applications, such as the popular chatbot Doubao, which boasts 75 million monthly active users. Its international counterparts include apps like Cici and Dreamina, reflecting ByteDance’s strategy to adapt its AI offerings globally. The company also recently updated its flagship AI model, Doubao, to rival reasoning models like those developed by Microsoft-backed OpenAI.

ByteDance’s international spending aligns with its efforts to expand AI capabilities abroad amid challenges like the uncertain future of TikTok in the United States. While ByteDance’s $20 billion plan is substantial, it remains modest compared to the AI investments of US tech giants like Google and Microsoft, which spent $50 billion and $55.7 billion respectively on AI infrastructure in the past year. The spending will also bolster ByteDance’s partnerships with suppliers such as Nvidia, from which it has procured custom AI chips tailored to China despite US export restrictions.

Trump announces $500 billion AI infrastructure project

President Donald Trump unveiled a $500 billion private-sector initiative on Tuesday aimed at transforming AI infrastructure in the US. The joint venture, called Stargate, brings together OpenAI, SoftBank, and Oracle to build 20 massive data centres and create over 100,000 jobs. Backers have committed $100 billion for immediate deployment, with the remainder spread over the next four years.

The announcement, made at the White House with SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison in attendance, underscores America’s push to lead in AI development. Ellison revealed that the first data centres, each half a million square feet, are already under construction in Texas. These facilities aim to power advanced AI applications, including analysing electronic health records to assist doctors.

Trump attributed the project’s launch to his leadership, with executives expressing their support. “We wouldn’t have decided to do this unless you won,” Son said. However, the ambitious project arrives amid concerns over the rising energy demands of AI data centres. Trump promised to simplify energy production for these facilities, even as experts warn of potential power shortfalls across the country in the coming decade.

The announcement comes against a backdrop of surging AI investments since OpenAI’s release of ChatGPT in 2022, which sparked widespread adoption of AI across industries. Oracle and other tech stocks, including Nvidia and Dell, climbed on the news, reflecting market enthusiasm for the Stargate project.

TikTok owner ByteDance plans massive AI investment

ByteDance, the company behind TikTok, is reportedly planning a substantial $12 billion investment in AI infrastructure by 2025. According to the Financial Times, the funds will go towards acquiring advanced AI chips and enhancing model training capabilities, both domestically and abroad. A spokesperson for ByteDance refuted the accuracy of the report, calling the claims incorrect.

The company intends to allocate 40 billion yuan ($5.5 billion) towards purchasing AI chips in China, while an additional $6.8 billion will be spent overseas. Domestic semiconductor orders would largely go to Chinese suppliers, including Huawei and Cambricon, with the remainder focused on Nvidia chips modified to comply with US export restrictions.

China’s government has encouraged tech firms to source a significant percentage of their chips from local manufacturers. Meanwhile, ByteDance continues to navigate US scrutiny, with its popular app TikTok facing political pressure to be sold.

The news comes amid a broader global race for AI dominance, where investment in cutting-edge technology remains pivotal for competitive advantage.

U Mobile secures CIMB support for Malaysia’s second 5G network rollout

U Mobile has secured financial backing from CIMB Bank to support its role as the country’s second 5G network provider. The two companies signed a Memorandum of Understanding (MoU) to facilitate the 5G rollout, with the partnership aligning with Malaysia’s digitalisation goals and aspirations for high-income status.

The Malaysian Communications and Multimedia Commission (MCMC) recently approved U Mobile as the second 5G provider, signalling a shift from a single-operator 5G model to a dual-network setup. That move follows the government’s decision to diversify network providers after Digital Nasional Berhad (DNB), initially the sole 5G operator, laid the foundation for 5G infrastructure in Malaysia.

U Mobile plans to establish 5,000 to 7,000 new 5G sites and enhance its existing 4G infrastructure to benefit enterprises, consumers, and the public sector. The company is also expected to collaborate with other operators to facilitate the rollout and expand 5G coverage across the country.

CIMB Bank has expressed its commitment to supporting digital innovation through 5G, underscoring the importance of such collaborations for advancing Malaysia’s technological infrastructure. That partnership is set to contribute significantly to Malaysia’s digital economy and its aspirations for a connected, high-tech future. By expanding 5G coverage and enhancing its network, U Mobile positions itself to play a key role in shaping Malaysia’s telecommunications landscape.

Vodafone Cook Islands partners with Rivada to transform connectivity in Oceania

Vodafone Cook Islands and Rivada have partnered to enhance telecommunications connectivity and drive digital transformation across the Oceania region. The collaboration addresses the challenges posed by the geographic isolation of the Cook Islands and other territories in Oceania. By utilising Rivada’s next-generation low-Earth orbit (LEO) satellite constellation, the Outernet, Vodafone intends to offer scalable, resilient connectivity for enterprises and government clients.

The Outernet’s innovative design combines inter-satellite laser links and advanced onboard processing to provide gigabit-speed connectivity globally, bypassing public internet and third-party infrastructure. This optical mesh network ensures secure, fast, and low-latency connections, delivering urban-centre-quality connectivity to remote regions, including the Pacific islands.

In a time when geopolitical tensions threaten subsea cables in Asia, the partnership will create a more reliable and secure telecommunications infrastructure for the region. The benefits of this partnership are expected to be far-reaching, particularly for remote communities and the outer islands of the Cook Islands.

The enhanced connectivity will support critical sectors like online education, healthcare, and business, driving technological innovation and economic growth. Phillip Henderson, CEO of Vodafone Cook Islands, expressed his enthusiasm for the partnership, emphasising how the Outernet will empower remote communities, providing them access to previously challenging services.

The partnership is poised to transform connectivity in the region, helping to bridge the digital divide and foster long-term economic development.

Japanese bank supports German 5G development

The Japan Bank for International Cooperation (JBIC) has pledged up to €800 million to support the expansion of Germany’s 5G infrastructure, part of an effort to reduce reliance on Chinese technology. The project, which includes contributions from private banks across Europe and Japan, aims to build a secure and advanced telecom system for Germany.

The funding will support United Internet AG, a German telecom company, in adopting Open Radio Access Network (Open RAN) technology. This system allows seamless integration of equipment from multiple suppliers, reducing the risks of over-dependence on a single provider. A significant portion of the software involved is developed by Rakuten Group Inc., a Japanese tech firm.

Germany has relied heavily on Chinese manufacturers for 5G infrastructure, with 59% of its network sourced from Huawei and ZTE in 2022. This new initiative reflects Germany’s ambition to phase out Chinese components by 2029 and strengthen national security. JBIC’s €300 million contribution represents the largest share of the funding, ensuring stability and mitigating risks for the ambitious expansion.

As part of a broader collaboration, financial institutions from France, Britain, and Japan are also participating in the loans. Beyond enhancing Germany’s telecom security, the project is expected to benefit Japanese firms operating in the country by offering a trusted platform for handling sensitive data.

Starlink and global players eye opportunities in India’s satellite spectrum policy

A decision to allocate satellite spectrum administratively rather than through an auction aims to increase competition in India’s vast telecom market. Telecoms Minister Jyotiraditya Scindia emphasised the government’s commitment to providing consumers with greater choice, despite concerns from Mukesh Ambani’s Reliance Jio over losing ground to Elon Musk’s Starlink. Reliance had pushed for auctions, arguing they ensure a level playing field after the company invested $19 billion in airwave rights.

Analysts suggest administrative allocation aligns with global norms and reduces investment barriers for foreign companies. Scindia noted that current satellite technology is limited to outdoor use, which distinguishes it from indoor services offered by terrestrial networks. Applications from Starlink and Amazon Kuiper to enter India’s satellite broadband market, projected to reach $1.9 billion by 2030, are under review.

India’s competitive telecom sector, with 942 million users and low data costs, is attracting significant global interest. Bharat Sanchar Nigam Limited (BSNL), a state-run operator with 99 million users, is expanding its 4G offerings to regain market share. Meanwhile, the government remains tight-lipped about plans to assist Vodafone Idea, which faces $24 billion in dues.

Musk’s disruptive approach, evident in markets like Kenya where Starlink’s pricing undercut local rivals, signals potential shifts in India’s broadband landscape. The new satellite policy could bring more innovation, fostering a dynamic environment for global and domestic players.