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Apple faces backlash over AI-generated news errors

Apple is facing mounting criticism over its AI-generated news summaries, which have produced inaccurate and misleading alerts on its latest iPhones. Media organisations, including the BBC, have raised concerns that the feature, designed to summarise breaking news notifications, has fabricated details that contradict original reports. The National Union of Journalists and Reporters Without Borders have called for the product’s removal, warning it risks spreading misinformation at a time when trust in news is already fragile.

High-profile errors have fuelled demands for urgent action. In December, an Apple AI summary falsely claimed that a murder suspect had taken his own life, while another inaccurately announced Luke Littler as the winner of the PDC World Darts Championship before the event had even begun. Apple has pledged to update the feature to make it clearer that summaries are AI-generated, but critics argue this does not address the root problem.

Journalism watchdogs and industry experts have warned that AI-driven news aggregation remains unreliable. The BBC stressed that the errors could undermine public trust, while former Guardian editor Alan Rusbridger described Apple’s technology as “out of control”. Similar concerns have been raised over generative AI tools from other tech firms, with Google’s AI-powered search summaries also facing scrutiny for producing incorrect responses. Apple insists the feature remains optional and is still in beta testing, with further improvements expected in an upcoming software update.

Wall Street rallies as AI optimism boosts chip stocks and tariff concerns ease

US stock markets climbed to one-week highs on Monday, driven by gains in semiconductor stocks and optimism over AI investments. Reports suggesting that Donald Trump’s incoming administration may adopt a more selective approach to tariffs, rather than broad measures, also helped boost investor confidence. The Dow Jones Industrial Average rose 0.41%, the S&P 500 gained 1.02%, and the Nasdaq Composite surged 1.53%, with automakers and tech stocks leading the rally.

Semiconductor shares saw strong gains after Microsoft announced an $80 billion investment in AI-enabled data centres, while Foxconn posted better-than-expected quarterly revenue. Nvidia climbed 3.5%, AMD gained 2.8%, and Micron Technology surged 9.6%, pushing the Philadelphia Semiconductor Index to a two-month high. Meanwhile, the Russell 2000 index, which tracks small-cap companies, added 0.7% as investors weighed economic data and Federal Reserve policy signals.

Investors are closely watching monetary policy developments, with the Federal Reserve expected to provide further guidance on interest rate cuts later in the week. While Trump’s proposals could support corporate earnings and economic growth, concerns remain over potential inflationary pressures. US markets will be closed on January 9 for a national day of mourning in honour of former President Jimmy Carter.

AI progress may be in decline, warns Google DeepMind’s Demis Hassabis

Demis Hassabis, CEO of Google DeepMind, has warned that the rapid progress in AI development may be slowing as companies exhaust the available digital data needed to train large language models. The industry has long relied on feeding vast amounts of online text into AI systems to improve performance, but diminishing returns are now setting in. Some experts, including OpenAI’s Ilya Sutskever, believe the industry has reached “peak data,” meaning future improvements will require entirely new approaches.

Researchers are now exploring alternative methods, such as synthetic data, where AI models generate and learn from their own outputs. While this technique has shown promise in fields like mathematics and programming, it struggles with more complex areas like philosophy and the arts, where defining correctness is difficult. OpenAI has already applied this method in its latest system, OpenAI o1, but challenges remain, particularly in preventing AI from making errors or generating misleading information.

Another possibility to overcome ‘data limitation’ in AI development is to shift focus from quantity to quality of data through better data labelling and contextual enrichment, as done by Diplo’s cognitive proximity approach (see below).

Diplo's bottom-up AI approach based on small but well-curated data.
DiploAI approach to data enrichment

Tech leaders remain divided on whether AI advancements will continue at the same pace. Nvidia’s CEO Jensen Huang remains optimistic, citing strong demand for AI chips and ongoing innovation. However, some of the company’s biggest customers are preparing for a possible plateau in AI development. Despite the uncertainty, investment in AI infrastructure remains high, with firms continuing to push the boundaries of what AI can achieve.

OpenAI confident in AGI but faces safety concerns

OpenAI CEO Sam Altman has stated that the company believes it knows how to build AGI and is now turning its focus towards developing superintelligence. He argues that advanced AI could significantly boost scientific discovery and economic growth. While AGI is often defined as AI that outperforms humans in most tasks, OpenAI and Microsoft also use a financial benchmark—$100 billion in profits—as a key measure.

Despite Altman’s optimism, today’s AI systems still struggle with accuracy and reliability. OpenAI has previously acknowledged that transitioning to a world with superintelligence is far from certain, and controlling such systems remains an unsolved challenge. The company has, however, recently disbanded key safety teams, leading to concerns about its priorities as it seeks further investment.

Altman remains confident that AI will soon make a significant impact on businesses, suggesting that AI agents could enter the workforce and reshape industries in the near future. He insists that OpenAI continues to balance innovation with safety, despite growing scepticism from former staff and industry critics.

Foxconn achieves record fourth-quarter revenue, driven by strong AI server demand

Taiwan’s Foxconn, the world’s leading electronics contract manufacturer, reported record-breaking revenue for the fourth quarter, driven by surging demand for AI servers. With a 15.2% rise in revenue to T$2.13 trillion ($64.72 billion), the company outperformed market expectations, reflecting the robust growth of its cloud and networking products division. Major clients like Nvidia have fueled the boom, while its consumer electronics segment, including iPhones, remained stable year-on-year.

Foxconn’s December revenue alone soared by 42.3% compared to the previous year, reaching T$654.8 billion, marking the second-highest figure for that month in the company’s history. Despite the fourth quarter’s impressive performance, Foxconn acknowledged the seasonal slowdown typical of the first quarter. However, the company projects significant year-on-year growth for early 2025, aligning with average levels from the past five years.

The company, formally known as Hon Hai Precision Industry, has seen its shares skyrocket by 76% in 2024, far outpacing Taiwan’s broader market index. Investors remain optimistic as Foxconn continues to dominate in the AI and electronics sectors, with its entire fourth-quarter earnings set to be unveiled on 14 March.

Anthropic settles copyright infringement lawsuit with major music publishers over AI training practices

Anthropic, the company behind the Claude AI model, has agreed to resolve aspects of a copyright infringement lawsuit filed by major music publishers. The lawsuit, initiated in October 2023 by Universal Music Group, ABKCO, Concord Music Group, and others, alleged that Anthropic’s AI system unlawfully distributed lyrics from over 500 copyrighted songs, including tracks by Beyoncé and Maroon 5.

The publishers argued that Anthropic improperly used data from licensed platforms to train its models without permission. Under the settlement approved by US District Judge Eumi Lee, Anthropic will maintain and extend its guardrails designed to prevent copyright violations in existing and future AI models.

The company also agreed to collaborate with music publishers to address potential infringements and resolve disputes through court intervention if necessary. Anthropic reiterated its commitment to fair use principles and emphasised that its AI is not intended for copyright infringement.

Despite the agreement, the legal battle isn’t over. The music publishers have requested a preliminary injunction to prevent Anthropic from using their lyrics in future model training. A court decision on this request is expected in the coming months, keeping the spotlight on how copyright law applies to generative AI.

Apheris revolutionises data privacy and AI in life sciences with federated computing

Privacy and regulatory concerns have long hindered AI’s reliance on data, especially in sensitive fields like healthcare and life sciences. Apheris, a German startup co-founded by Robin Röhm, aims to solve this problem using federated computing—a decentralised approach that trains AI models without moving sensitive data.

The company’s approach is gaining traction among prominent clients like Roche and hospitals, and its technology is already being used in collaborative drug discovery efforts by pharmaceutical giants such as Johnson & Johnson and Sanofi. Apheris recently secured $8.25 million in Series A funding led by OTB Ventures and eCAPITAL, bringing its total funding to $20.8 million.

That follows a pivotal shift in 2023 to focus on the needs of data owners in the pharmaceutical and life sciences sectors. The pivot has paid off, quadrupling the company’s revenue since launching its redefined product, the Apheris Compute Gateway, which securely bridges local data and AI models.

With its new funding, Apheris plans to expand its team and refine its AI-driven solutions for complex challenges like protein prediction. By prioritising data security and privacy, the company aims to unlock previously inaccessible data for innovation, addressing a core barrier to AI’s transformative potential in life sciences.

Debate over AI regulation intensifies amidst innovation and safety concerns

In recent years, debates over AI have intensified, oscillating between catastrophic warnings and optimistic visions. Technologists, once at the forefront of calling for caution, have been overshadowed by the tech industry’s emphasis on generative AI’s lucrative potential.

Dismissed as ‘AI doomers,’ critics warn of existential threats—from mass harm to societal destabilisation—while Silicon Valley champions the transformative benefits of AI, urging fewer regulations to accelerate innovation. 2023 marked a pivotal year for AI awareness, with luminaries like Elon Musk and over 1,000 experts calling for a development pause, citing profound risks.

US President Biden’s AI executive order aimed to safeguard Americans, and regulatory discussions gained mainstream traction. However, 2024 saw this momentum falter as investment in AI skyrocketed and safety-focused voices dwindled.

High-profile debates, like California’s SB 1047—a bill addressing catastrophic AI risks—ended in a veto, highlighting resistance from powerful tech entities. Critics argued that such legislation stifled innovation, while proponents lamented the lack of long-term safety measures.

Amid this tug-of-war, optimistic narratives, like Marc Andreessen’s essay ‘Why AI Will Save the World,’ gained prominence. Advocating rapid, unregulated AI development, Andreessen and others argued this approach would bolster competitiveness and prevent monopolisation.

Yet, detractors questioned the ethics of prioritising profit over societal concerns, especially as cases like AI-driven child safety failures underscored emerging risks.

Why does it matter?

Looking ahead to 2025, the AI safety movement faces an uphill battle. Policymakers hint at revisiting stalled regulations, signalling hope for progress. However, with influential players opposing stringent oversight, the path to balanced AI governance remains uncertain. As society grapples with AI’s rapid evolution, the challenge lies in addressing its vast potential and inherent risks.

Russia seeks enhanced AI collaboration with China amidst Western sanctions challenges

Russian President Vladimir Putin has directed the government and Sberbank, the nation’s largest bank, to deepen collaboration with China in the development of AI. The announcement, published on the Kremlin’s website, comes three weeks after Putin unveiled plans for Russia to work alongside BRICS nations and other partners to advance AI technologies. Sberbank, which leads Russia’s AI initiatives, has been tasked with fostering technological cooperation with China.

That move reflects Russia’s efforts to circumvent Western sanctions that have restricted its access to key technologies, including microchips essential for AI development. The sanctions have caused major global chip manufacturers to halt exports to Russia, creating significant hurdles for its AI ambitions.

Sberbank CEO German Gref admitted that replacing GPUs, the microchips vital to AI, remains a critical challenge for the country. By partnering with non-Western allies, Russia aims to counterbalance US dominance in the rapidly evolving AI sector, which Putin has described as a cornerstone of the 21st century.

As part of this strategy, a newly proposed AI Alliance Network will unite experts from BRICS nations and other interested states to bolster innovation and investment. However, Russia still lags behind its competitors, ranking 31st in the Global AI Index, far below leaders like the US, China, and even BRICS partners India and Brazil.

Nvidia leads tech companies in record-breaking market achievements in 2024 as AI fuels growth

Nvidia has emerged as the standout performer in the global market capitalisation race for 2024, driven by a surge in demand for its AI-centric chips. The company’s market value soared by over $2 trillion in just one year, reaching $3.28 trillion at the year’s close.

The remarkable growth positions Nvidia as the world’s second-most valuable publicly traded company, trailing only Apple, which remains at the top with a market value nearing $4 trillion. Apple’s rise was bolstered by investor confidence in its forthcoming AI advancements, designed to rejuvenate iPhone sales.

Other tech giants also saw significant gains, with Microsoft securing third place at $3.1 trillion, Alphabet Inc., and Amazon, each valued at around $2.3 trillion. These companies’ successes fueled a broader market rally, pushing the S&P 500 index up by 23.3% and the Nasdaq by 28.6% in 2024. The strong performance underscores the continued dominance of technology firms in shaping global financial markets.

Despite potential headwinds such as US-China trade tensions and uncertainties around US interest rate policies, analysts are optimistic about the sector’s trajectory in 2025. Daniel Ives of Wedbush projects a 25% gain in tech stocks, citing robust AI initiatives, reduced regulatory pressures, and stable foundations for Big Tech.

‘The AI Revolution will remain a key driver, with over $2 trillion in incremental investments expected over the next three years,’ Ives stated, signalling a bright future for the industry.