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Microsoft invests $2.2 billion in Malaysian cloud expansion

Microsoft is set to launch its first cloud region in Malaysia, featuring three data centres in the greater Kuala Lumpur area.

The centres, known as Malaysia West, will begin operations by mid-year, marking a significant step in the company’s $2.2 billion investment in the country.

However, this move is part of Microsoft’s broader plan to expand its cloud and AI services in Southeast Asia. Microsoft estimates the investment will generate $10.9 billion in revenue and create over 37,000 jobs in Malaysia over the next four years.

Laurence Si, managing director of Microsoft Malaysia, stated that the company’s operations in Malaysia remain on track despite concerns over US export controls on semiconductor chips.

Microsoft remains confident in its relationships with stakeholders and its ability to meet its investment commitments.

Local businesses are expected to benefit from enhanced cloud and AI capabilities, with the country aiming to become a leading hub for technological innovation in the region.

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AI firm Prezent aims for global expansion after securing fresh investment

AI startup Prezent has raised $20 million in fresh funding to refine its AI-powered slide deck creation platform and expand into new markets.

The Los Altos-based company, which also operates in Bengaluru, aims to help businesses create high-quality presentations tailored to industry-specific language and terminology.

Founded in 2021 by Rajat Mishra, Prezent combines generative AI with proprietary data from millions of slide decks to offer customised business communication solutions.

The company’s AI assistant, Astrid, enables users to upload documents such as Excel files and PDFs while providing relevant company-specific context. Prezent’s technology suggests layouts and formats for presentations, helping users streamline their workflow.

For those on tight deadlines, an expedited service combines AI with human reviewers to deliver polished, professional-grade decks overnight. The platform currently serves around 150 Fortune 2000 companies, particularly in biopharma and tech, and is now targeting financial services and manufacturing.

With plans to expand into Europe, Japan, and Singapore, Prezent is also developing APIs to allow developers to generate presentations directly from chatbots, apps, and search engines.

Last year, the company reported over $10 million in annual recurring revenue and now has nearly 200 employees, most of whom work remotely from India.

The latest investment, led by Greycroft with participation from Zoom Ventures and others, values Prezent at well over $100 million.

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OpenAI and Google face lawsuits while advocating for AI copyright exceptions

OpenAI and Google have urged the US government to allow AI models to be trained on copyrighted material under fair use.

The companies submitted feedback to the White House’s ‘AI Action Plan,’ arguing that restrictions could slow AI progress and give countries like China a competitive edge. Google stressed the importance of copyright and privacy exceptions, stating that text and data mining provisions are critical for innovation.

Anthropic also responded to the White House’s request but focused more on AI risks to national security and infrastructure rather than copyright concerns.

Meanwhile, OpenAI and Google are facing multiple lawsuits from news organisations and content creators, including Sarah Silverman and George R.R. Martin, who allege their works were used without permission for AI training.

Other companies, including Apple and Nvidia, have also been accused of improperly using copyrighted material, such as YouTube subtitles, to train AI models.

As legal challenges continue, major tech firms remain committed to pushing for regulations that support AI development while navigating the complexities of intellectual property rights.

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New AI model by Stability AI creates 3D videos from images

Stability AI has unveiled its latest AI model, Stable Virtual Camera, designed to convert 2D images into dynamic 3D video scenes. Announced in a company blog post, the model enables users to create immersive videos with realistic depth and perspective using up to 32 input images. It generates ‘novel views’ of a scene, offering various preset camera movements, including Spiral, Dolly Zoom, Move, and Pan.

The tool is currently available as a research preview and allows users to generate videos in square (1:1), portrait (9:16), and landscape (16:9) formats, with a maximum length of 1,000 frames. However, Stability AI warns that certain images, such as those with people, animals, or complex textures like water, may produce lower-quality results. Highly ambiguous or irregularly shaped objects may also lead to visual artifacts.

Stable Virtual Camera is available for research use under a non-commercial license and can be downloaded from AI development platform Hugging Face. The launch follows a turbulent period for Stability AI, which has recently undergone leadership changes, secured new investments, and expanded into new AI applications, including generative audio. With this latest innovation, the company aims to solidify its position in the competitive AI market.

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Nvidia holds back on optical technology for GPUs

Nvidia’s CEO, Jensen Huang, has stated that a promising new chip technology, co-packaged optics, is not yet reliable enough for use in the company’s flagship GPUs.

The technology, which uses laser beams to transfer data via fiber optic cables instead of traditional copper, is more energy-efficient and faster.

However, Huang emphasized that copper connections remain ‘orders of magnitude’ more reliable than today’s optical alternatives, making them the preferred choice for now.

Speaking at Nvidia’s annual developer conference in San Jose, Huang announced that the company will use co-packaged optics in two upcoming networking chips designed for server switches, increasing their energy efficiency by three and a half times.

These switch chips will be released later this year and into 2026, marking a gradual technological step forward. However, Huang clarified that Nvidia currently has no plans to implement optical connections between GPUs, as reliability remains a key priority for its AI-focused customers like OpenAI and Oracle.

Silicon Valley startups such as Ayar Labs, Lightmatter, and Celestial AI have invested heavily in co-packaged optics, seeing it as essential for building more powerful AI systems. Nvidia itself has backed some of these ventures, despite Huang’s cautious approach.

While optical connections could eventually help AI models process complex tasks more efficiently, Nvidia is prioritizing proven technology for its near-term roadmap, ensuring stability in an industry preparing to invest hundreds of billions in AI infrastructure.

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Tencent sees surge in profits and revenue

Tencent, a leading Chinese tech giant, has reported impressive financial results for the fourth quarter and full year, boosted by its strategic investment in AI.

For the three months ending December 31, Tencent’s net profits soared by 90% year-on-year to 51.3 billion yuan ($7.1 billion), while its revenue increased by 11% to 172.4 billion yuan, surpassing analyst expectations.

The company’s strong performance was attributed to AI-driven enhancements in its advertising platform, growing video account engagement, and solid results from its gaming division.

For the full year, Tencent’s revenue reached 660.3 billion yuan, up 8% from the previous year, with net profits jumping 68% to 194.1 billion yuan.

CEO Pony Ma highlighted the role of AI in driving innovation, noting that Tencent had reorganized its AI teams to focus on fast product development and advanced model research.

The company’s stock price has surged to its highest in nearly four years, reflecting strong investor confidence.

The increased AI interest follows the unexpected global success of DeepSeek, a Chinese startup whose chatbot development caught the attention of investors, positioning China as a competitor to Western tech leaders like OpenAI.

Ma expressed Tencent’s admiration for DeepSeek and confirmed its active integration of their technology. Tencent has also started testing its own AI model, ‘Hunyuan Thinker’, which aims to offer more professional and human-like responses.

Despite its financial successes, Tencent faces ongoing challenges, including a sluggish domestic economy and political tensions, particularly with the US.

In January, the US added Tencent to a list of firms linked to China’s military, a move the company and the Chinese government have criticized as unjustified.

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India’s banks encouraged to adopt AI for consumer protection

Indian banks should harness AI to improve internal controls and address customer complaints more effectively, according to central bank governor Sanjay Malhotra.

Malhotra highlighted concerns over rising complaints about mis-selling and aggressive banking practices, warning that the issue could escalate if left unchecked. In the 2023-2024 financial year, 95 commercial banks in India received over 10 million complaints from customers.

AI-powered solutions can help financial institutions analyse large data sets to detect issues such as ATM failures and erroneous charges before they become widespread.

Malhotra also pointed to the potential of AI-driven chatbots and voice recognition tools to assist customers in multiple languages, making banking services more accessible in India’s linguistically diverse market.

Alongside AI adoption, Malhotra urged banks to invest in human capital to enhance customer service and grievance redressal processes.

Strengthening both technology and human resources will be crucial in ensuring financial institutions can meet the needs of a rapidly growing customer base while maintaining trust and transparency.

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DeepMind’s Hassabis calls for UK leadership in AI development

Britain should use its strengths in AI to shape how the technology is deployed worldwide, according to DeepMind founder Demis Hassabis.

Hassabis highlighted the country’s leading universities and skilled workforce as key factors in maintaining a competitive edge. Speaking at a Google AI event, he stressed the economic and geopolitical importance of ensuring AI development aligns with ethical and practical standards.

The UK government is working to boost AI innovation, with advanced technology at the centre of discussions between Prime Minister Keir Starmer and US officials.

Google has announced upgrades to its AI offerings in Britain, including expanded UK data residency for its work productivity tool, Google Agentspace. Meanwhile, tech rival Oracle has pledged a $5 billion investment in Britain over the next five years to support growing demand for cloud services.

Hassabis also called for global standards on the use of copyrighted material in AI development, noting the challenges of regulating models used across different countries.

Google’s AI expansion includes the addition of its Chirp 3 audio generation model to Vertex AI, enhancing cloud services with human-like voice capabilities. The UK remains a key player in the AI sector, with industry leaders pushing for policies that ensure responsible and effective deployment of the technology.

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Palmetto leverages AI to revolutionise home electrification across the US

Palmetto, known for its innovative approach to residential solar installations, is now focusing on the broader electrification of US homes using AI.

The company has developed an AI-powered tool that simulates digital twins of homes across the country, which will help determine how technologies like heat pumps and solar panels can be effectively deployed in individual homes.

By using public and private data, Palmetto’s AI can infer critical information about a home, such as insulation types and building materials, to optimise energy efficiency.

As the residential solar market slows, Palmetto has expanded its software to include electrification solutions beyond solar, including backup batteries and heat pumps.

The company has now made its tool available to external developers through an API, allowing them to create new applications that can speed up the electrification process.

Palmetto hopes that developers will build tools that can quickly address the demand for these technologies, which will be essential in the US effort to reduce carbon emissions.

The company’s AI system analyses over 60 characteristics of homes, including details like the construction year and materials used, to make accurate energy efficiency predictions.

However, this tool will also offer developers insights into the growing electrification market. With an API offering 500 free calls per month, Palmetto’s strategy allows for scalable growth while providing key data for the company’s future development.

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Intel’s new CEO plans major changes to revive the company

Intel’s incoming CEO Lip-Bu Tan is considering major changes to the company’s chip manufacturing and AI strategies to revive the struggling tech giant.

Sources revealed that Tan aims to restructure Intel’s approach to AI and implement staff cuts to streamline operations, focusing on addressing slow-moving middle management.

One of Tan’s core priorities is revamping Intel’s manufacturing operations, which have expanded to include producing semiconductors for external clients like Nvidia.

The changes come as Intel looks to regain its competitive edge after a decade of missed opportunities in smartphone chips and AI processors, allowing competitors such as Arm Holdings and Nvidia to dominate.

At a recent town hall, Tan told employees that the company would need to make ‘tough decisions’ to improve performance. Intel’s shares rose over 8% following his appointment, as investors await further details on his plans.

Tan’s immediate focus includes bolstering Intel Foundry’s performance and attracting new customers in sectors such as AI and robotics.

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