Snap has introduced an AI-powered text-to-image model designed to run efficiently on mobile devices, generating high-resolution images in just 1.4 seconds on an iPhone 16 Pro Max. Unlike cloud-based systems, this model operates entirely on the device, reducing costs while maintaining impressive visual quality. The company plans to integrate it into Snapchat’s AI Snaps and Bitmoji features in the coming months.
By developing its own AI model, Snap aims to provide users with more advanced creative tools while lowering operational expenses. The move aligns with a broader trend among tech companies investing heavily in AI to enhance their platforms. Previously, Snap relied on external providers like OpenAI and Google, but its in-house model gives it more control over future innovations.
Snapchat’s AI investment highlights the growing competition in mobile AI technology, with major players racing to deliver faster and more efficient features. As the company prepares to roll out these new capabilities, it remains to be seen how they will shape user experiences and engagement on the platform.
China has introduced a series of measures targeting US businesses, including Google, farm equipment makers, and the owner of Calvin Klein, following the implementation of new US tariffs on Chinese goods. Among these measures, China launched an investigation into Google for potential violations of anti-monopoly laws, although no further details were provided. Despite its minimal presence in China, Google continues to collaborate with local advertisers.
China’s Ministry of Commerce also added US firms PVH Corp and Illumina to its ‘unreliable entity’ list, accusing them of actions that harmed Chinese companies. The companies could face significant sanctions, including trade freezes and restrictions on foreign staff. PVH has already been under scrutiny for its ties to the Xinjiang region.
As part of a broader response, China imposed 10% tariffs on US farm equipment, which could impact companies like Caterpillar, Deere & Co., and AGCO. Tesla’s Cybertruck, a model that has yet to receive regulatory approval, could also be affected. These new tariffs, set to take effect on February 10, signal an escalation in trade tensions between China and the US, extending beyond the tech sector.
These moves mark a significant increase in trade restrictions, building on previous actions taken under former US President Biden’s administration. Analysts suggest that these measures may be used as leverage, with the potential for de-escalation if either side chooses to back down.
Alphabet is set to face investor scrutiny over its heavy spending on AI as it prepares to report earnings. Slower revenue growth in advertising and cloud services has raised concerns, especially as competition in AI intensifies. Chinese startup DeepSeek’s launch of low-cost AI models has fuelled worries about an industry price war. Alphabet’s capital expenditure, estimated at $50 billion for last year, is expected to rise further in 2025 to support AI-driven search features and cloud expansion.
Google Cloud’s growth is forecast to slow in the fourth quarter despite high expectations. Analysts suggest that while heavy investment continues, efficiency gains have helped maintain profits. The company’s search and advertising business remains strong, with an expected 11.2% increase in revenue, though this marks a slight slowdown from the previous quarter. Competition from Amazon and TikTok continues to challenge Alphabet’s dominance in search advertising.
Political advertising linked to the US presidential election may have boosted Google’s revenue, following a similar trend at Meta. However, Meta’s cautious outlook for the first quarter has raised concerns about broader ad market trends amid economic uncertainty. Alphabet’s shares have climbed 7% this year after a strong rally in 2023, largely driven by confidence in its AI strategy.
Investors will closely watch whether Alphabet faces the same cloud business challenges as Microsoft, whose Azure growth slowed due to a shift in AI priorities. Google Cloud revenue is expected to rise by 32% in the fourth quarter, slightly down from the 35% growth seen previously but still outpacing Microsoft and Amazon. Maintaining momentum in AI while balancing cloud growth remains a key challenge for Alphabet.
Google and Epic Games presented arguments before a US appeals court as Google attempted to overturn a jury verdict and a judge’s order requiring changes to its app store. Google’s lawyer argued that the trial judge made errors that unfairly benefited Epic, which had accused the company of monopolising access to apps on Android devices. A San Francisco jury previously ruled that Google had stifled competition.
The judge ordered Google to allow users to download rival app stores within its Play Store and to make its app catalogue available to competitors. Google’s appeal has put the ruling on hold, with its lawyer contending that the company faces strong competition from Apple’s App Store and was unfairly restricted from making that argument. Epic’s lawyer rejected Google’s claims, insisting that its dominance had harmed competition for years.
A judge on the appeals panel challenged Google’s position, highlighting key differences between Apple’s and Android’s business models. Google also argued that Epic’s case should not have gone before a jury, as it did not seek damages. Epic countered that the Play Store changes were necessary and disputed Google’s concerns about privacy and security.
The US Justice Department, Federal Trade Commission, and Microsoft have backed Epic in the case. A decision from the appeals court is expected later in the year, with the possibility of further escalation to the US Supreme Court.
Google identified more than 57 cyber threat actors linked to China, Iran, North Korea, and Russia leveraging the company’s AI technology to enhance their cyber and information warfare efforts. According to a new report by Google’s Threat Intelligence Group (GTIG), the state-sponsored hacking groups, known as Advanced Persistent Threats (APTs), primarily use AI for tasks such as researching vulnerabilities, writing malicious code, and creating targeted phishing campaigns.
The company says that Iranian APT actors, particularly APT42, were identified as the most frequent users of Google’s AI tool, Gemini. They used it for reconnaissance on cybersecurity experts and organizations, and phishing operations.
Beyond APT groups, underground cybercriminal forums have begun advertising illicit AI models, such as WormGPT, WolfGPT, FraudGPT, and GhostGPT—AI systems designed to bypass ethical safeguards and facilitate phishing, fraud, and cyberattacks.
In the report, Google stated that the company has implemented countermeasures to prevent abuse of its AI system and has called for stronger collaboration between government and private industry to bolster cybersecurity defenses.
TikTok has announced a $3.8 billion investment in a data hosting centre in Thailand, marking a significant expansion of its digital infrastructure in the region. The project, managed through the company’s Singapore-based unit, is expected to support affiliated businesses and begin operations in 2026, according to Thailand’s Board of Investment.
The move comes amid a wave of tech investment in Thailand, with companies such as Google, Amazon Web Services, and Microsoft all committing billions to establish data centres in the country. The Thai government hopes these developments will strengthen its digital economy and push the nation closer to becoming a regional technology hub.
TikTok’s decision to invest follows increased scrutiny over data privacy and security worldwide. As governments tighten regulations on tech firms, establishing regional data centres has become a strategic move for companies looking to maintain compliance and expand their presence in key markets.
Mexico has objected to Google’s decision to rename the Gulf of Mexico as the Gulf of America for US users on Google Maps. President Claudia Sheinbaum confirmed on Wednesday that her government will send an official letter to the tech giant demanding clarification.
The name change follows an announcement by the US government that it had officially rebranded the body of water. In response, Google stated that its platform displays local official names when they differ across countries.
The move has sparked concerns in Mexico over sovereignty and historical recognition. With the government pressing for an explanation, the issue highlights the growing tension between technology firms and national identities in the digital space.
Google Maps will rename the Gulf of Mexico as the ‘Gulf of America’ for users in the United States, reflecting an official update to the US Geographic Names System. However, users in Mexico will continue to see the original name, while others worldwide will view both names side by side. Alphabet’s Google confirmed the change on social media, highlighting its standard practice of adapting location labels based on recent regional naming disputes.
The name change stems from an executive order signed by US President Donald Trump hours after taking office on 20 January, as part of his pledge to prioritise nationalist symbolism. Alongside this decision, Trump restored the name of North America’s highest peak, Denali, to its previous designation of Mount McKinley. These actions have reignited debates about historical and cultural naming conventions.
Mexican President Claudia Sheinbaum responded light-heartedly, suggesting that North America could be renamed ‘Mexican America’ in reference to an old regional map. Google, which has navigated other geopolitical naming controversies, cited its consistent approach, such as labelling disputed waters as ‘Sea of Japan (East Sea)’, ‘Israel (Palestine)’, or ‘Persian Gulf (Arabian Gulf)’ in different regions.
The renaming has sparked mixed reactions, with critics accusing it of unnecessary politicisation and cultural erasure. Google’s application of the changes reflects its policy of balancing local preferences and global clarity in its mapping platform.
Google has appealed to the EU’s top court to overturn a record 4.3-billion-euro antitrust fine imposed seven years ago, arguing that the penalty punished the company for its innovation. The fine was originally levied by the European Commission, which accused Google of using its Android operating system to suppress competition by forcing manufacturers to pre-install Google Search, Chrome, and the Google Play store on devices. While the fine was later reduced to 4.1 billion euros by a lower court, Google maintains that its actions fostered competition, not hindered it.
During Tuesday’s hearing, Google lawyer Alfonso Lamadrid stated that the Commission failed to meet its legal obligations and relied on errors in law. Lamadrid defended Google’s agreements with phone manufacturers, insisting they were not anti-competitive, but rather beneficial to the market. The case centres on whether the European Commission acted appropriately in its investigation and decision to reshape markets through such penalties.
The judges of the Luxembourg-based Court of Justice of the European Union will make a final ruling in the coming months, with no further opportunity for appeal. In addition to this case, Google remains under scrutiny by EU regulators for its advertising business, with another major decision expected later this year.
Google is ramping up efforts to influence public perception and policy on AI as it faces increasing global regulatory scrutiny. Kent Walker, Alphabet’s president of global affairs, emphasised the importance of educating the workforce on AI, saying that getting more people familiar with the technology would lead to better policy and open new opportunities. Google is keen on shaping the narrative around AI, especially as it competes with rivals like Microsoft and Meta in the fast-growing sector.
The company is also working to address concerns about job displacement and the potential for AI-driven workforce changes. Google has committed $120 million to AI education programs, with initiatives like the “Grow with Google” program, which provides online and in-person training to help workers gain skills in areas such as data analysis and IT. The company has already certified one million people through these programs and is now adding AI-focused courses.
As governments draft regulations on AI’s impact on privacy, copyright, and the economy, Google is pushing for public-private partnerships to help prepare workers for AI-related changes. Walker noted that while AI could displace some jobs, it will likely be integrated into most roles, creating new opportunities. Google is also researching AI’s potential in training programs, aiming to make adult retraining more engaging and effective.
