Google unveils experimental AI search for premium users

Google has introduced an experimental version of its search engine that removes the traditional 10 blue links in favour of AI-generated summaries.

The new ‘AI Mode’ is available to subscribers of Google One AI Premium, a $19.99 per month plan, and can be accessed through a tab alongside existing options like Images and Maps.

Users will see a detailed AI summary with hyperlinks to cited sources, replacing standard search results with a search bar for follow-up questions.

The feature is powered by a customised version of Google’s Gemini 2.0 model, designed to handle complex queries more effectively.

AI Overviews, which provide summaries atop search results, are already available in over 100 countries, with advertisements integrated into them since last May. Google says the new AI-driven approach responds to demand from “power users” seeking more AI-generated responses.

As Google pushes deeper into AI-powered search, it faces competition from Microsoft-backed OpenAI, which introduced search capabilities to ChatGPT last October.

The shift has raised concerns among content creators, with edtech company Chegg suing Google in February, alleging that AI previews are reducing demand for original content and hurting publishers’ ability to compete.

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Antitrust probe into Microsoft and OpenAI ends in the UK

The UK Competition and Markets Authority (CMA) has concluded its investigation into Microsoft’s partnership with OpenAI, deciding not to move forward with a merger probe.

The decision comes after the CMA found that Microsoft does not hold enough control over OpenAI, a key factor in triggering a merger review. The companies’ collaboration began in 2019, when Microsoft invested $1 billion in the AI startup.

Despite this, the CMA stated that Microsoft’s influence had not evolved to the level of de facto control required for further scrutiny.

This marks the end of the UK’s formal investigation into the deal, although the CMA clarified that its decision should not be interpreted as a dismissal of potential competition concerns related to the partnership.

While the investigation is closed, the CMA has been increasingly active in examining major tech company acquisitions, particularly those involving AI startups.

Microsoft welcomed the CMA’s decision, asserting that their ongoing partnership with OpenAI fosters innovation and competition in AI development.

Meanwhile, the CMA continues to monitor the tech sector, with broader powers to investigate companies deemed to hold ‘strategic market status’.

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Scale AI wins Pentagon AI contract

Scale AI has secured a multimillion-dollar contract with the US Department of Defense to develop AI tools for military operations. The project, named Thunderforge, is the Pentagon’s flagship AI initiative aimed at enhancing decision-making, simulation, and operational planning. Led by the Defense Innovation Unit, the programme will see collaboration with technology partners such as Microsoft and Anduril, initially focusing on the Indo-Pacific and European Commands before expanding further.

Thunderforge represents a shift towards AI-driven military strategies, promising increased speed and efficiency in modern warfare. The Department of Defense and Scale AI have emphasised the importance of rapid response times, with the technology designed to process vast amounts of information quickly. However, while Scale AI has assured that human oversight will be maintained, the Defence Innovation Unit has not explicitly highlighted this aspect in its communications.

The deal comes as more AI firms reconsider their stance on military applications. Companies like OpenAI, Microsoft, and Google have altered policies that previously restricted AI development for defence purposes. Critics argue that these technologies could be used for harmful applications despite company assurances, raising ethical concerns about the potential for AI in warfare. Some experts warn that firms may have limited control over how their AI is ultimately deployed.

This latest partnership highlights the growing integration of AI into defence strategies, despite previous pushback from tech industry employees. While firms insist their technologies will be used responsibly, concerns remain over the long-term implications of AI-driven warfare and the ability to ensure its ethical use.

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Northumberland approves Blackstone’s data centre project

Blackstone’s ambitious $13 billion ‘hyperscale’ data centre project in North East England has been given the green light by Northumberland County Council. The plan, which spans 540,000 square metres, was approved after a unanimous vote and is expected to represent an investment of up to £10 billion. The data centre will provide essential data storage and cloud computing services to businesses, addressing the rising demand in sectors such as AI.

The development is expected to generate substantial economic benefits, including up to 1,200 long-term construction jobs and hundreds of operational roles once the centre is running. Additionally, it could support up to 2,700 indirect jobs. As part of the agreement, Blackstone will contribute to a £110 million fund that will help drive growth along the Northumberland Line, a new railway route opened in December 2024.

This development follows the collapse of a previous plan to use the site for a Britishvolt facility, after the UK startup’s failure last year. With demand for data centres escalating, particularly due to AI advancements, this project is poised to play a crucial role in meeting growing technological needs across Europe.

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Nvidia shares drop after US tariffs announcement

Nvidia’s shares plummeted nearly 9% on 3 March following an announcement by US President Donald Trump confirming new tariffs on imports from Canada and Mexico, set to take effect on 4 March. The decline contributed to a broader market downturn, with the Dow Jones falling by 800 points and the Nasdaq dropping by over 3%. Nvidia’s market value took a sharp hit, losing around $265 billion and falling to $2.79 trillion, a steep drop from its previous $3 trillion valuation.

Despite reporting strong earnings, with revenue surging 78% year-over-year to $39.33 billion, Nvidia’s stock has lost 13% since 26 February. The 25% tariffs could affect the company’s operations, particularly as some of its systems are manufactured in the US and Mexico. However, CEO Jensen Huang remains optimistic, highlighting Nvidia’s AI advancements and the upcoming Blackwell chips, which he says will drive strong performance in the next quarter.

Nvidia also plans to play a key role in Taiwan Semiconductor’s $100 billion expansion in the US, a project mentioned by Trump. While the company faces short-term market volatility and policy challenges, its long-term strategy remains focused on technological growth and innovation.

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China to expand AI investment and boost tech innovation

China has announced plans to increase support for AI development and boost venture capital investment as part of its broader strategy to drive technological breakthroughs and self-reliance.

The initiative was outlined in a government report presented at the annual National People’s Congress, highlighting AI, biomanufacturing, quantum technology, and 6G as key areas for future growth.

Authorities plan to encourage the application of large-scale AI models and the advancement of next-generation intelligent terminals and smart manufacturing systems.

The report also emphasised the importance of creating an environment that supports innovation, allowing for exploration and tolerating failure. Young scientists and engineers will be given significant roles in national laboratories to accelerate progress in emerging industries.

China intends to improve its data infrastructure and facilitate cross-border data flows to strengthen its technological capabilities.

The inclusion of AI in the government’s work report for the first time comes amid growing interest in Chinese AI startups such as DeepSeek, signalling Beijing’s intent to remain at the forefront of AI development.

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Amazon bets on AI automation with new business unit

Amazon has created a new division focused on agentic AI to enhance automation for users and businesses. The initiative will be led by AWS executive Swami Sivasubramanian.

WS CEO Matt Garman described agentic AI as a potential multi-billion-dollar business, with the goal of enabling systems to take proactive actions without user prompts.

The announcement follows Amazon’s recent unveiling of an upgraded Alexa, which incorporates similar AI capabilities.

As part of a broader restructuring within AWS, senior vice president Peter DeSantis also outlined leadership changes, including the realignment of AI units Bedrock and SageMaker under the compute organisation.

The company believes these shifts will accelerate innovation and improve customer experience.

Amazon has been investing heavily in AI to maintain its competitive edge in cloud computing and e-commerce. The restructuring signals a stronger push toward AI-driven automation, which the company sees as central to the next wave of technological progress.

Shares of Amazon fell slightly following the announcement, closing at $204.81.

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Malaysia sets sights on advanced chip production with $250 million deal

Malaysia has secured a landmark deal worth $250 million with Arm Holdings to acquire the company’s advanced chip design blueprints.

The agreement, which spans a decade, will enable Malaysia to produce its own AI chips, including graphics processing units, as demand for AI and data centres continues to surge globally.

The deal is part of Malaysia’s broader goal to become a major player in semiconductor manufacturing over the next ten years.

Prime Minister Anwar Ibrahim confirmed that the deal will also see Arm establish its first Southeast Asian office in Kuala Lumpur. The move is aimed at strengthening the company’s presence in the region, including expanding its reach to Australia and New Zealand.

Alongside this, Malaysia will invest in training 10,000 engineers to support the local manufacturing ecosystem.

The initiative is expected to drive significant economic growth, with Malaysia aiming to create 10 local chip companies, each generating annual revenues between $1.5 to $2 billion.

Malaysia aims to build a complete supply chain for advanced industries, covering everything from AI data servers to autonomous vehicles and robotics.

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New iPad Air arrives with advanced AI capabilities

Apple has launched new versions of the iPad Air, now featuring its latest M3 chip and AI capabilities. Starting at $599 for the 11-inch model and $799 for the 13-inch variant, the updated iPads are set to be available for pre-order with deliveries beginning on March 12.

The new devices are designed to meet growing demand for AI-powered features, such as enhanced writing and photo editing tools, helping Apple remain competitive against rivals like Samsung and Huawei.

Apple continues its strategy of integrating AI into its product ecosystem, recently introducing ‘Apple Intelligence’ to its devices, offering ChatGPT for tasks such as email composition and image editing.

Apple’s iPad sales have been robust, exceeding expectations during the holiday quarter, with over half of the sales attributed to new customers.

While the new iPad Air models come with double the storage and improved performance, Apple’s regular iPad has also been updated, though it will not feature the AI enhancements found in the Air. The move underlines Apple’s focus on integrating AI into its higher-end devices to attract tech-savvy consumers.

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Malaysia works with US and Singapore on Nvidia chip probe

Malaysian authorities are investigating whether local laws were breached in the shipment of servers that may have contained advanced AI chips subject to U export controls.

The case is linked to a fraud investigation in Singapore, where three men were recently charged over transactions involving servers supplied by US firms. The equipment was allegedly transferred to Malaysia and may have included Nvidia’s artificial intelligence chips.

The Malaysian government confirmed it is working closely with the United States and Singapore to determine whether US-sanctioned chips were involved. Authorities aim to find effective measures to prevent such transactions from violating trade regulations.

Singapore has not specified whether the chips in question fall under US export restrictions but acknowledged they were used in servers that passed through Malaysia.

US officials are also examining whether DeepSeek, a Chinese AI firm whose technology gained attention in January, has been using restricted US chips.

Washington has tightened controls on AI chip exports to China, and any unauthorised shipments could lead to further scrutiny of supply chains in the region.

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