STMicroelectronics has announced the launch of a new computer chip aimed at the rapidly expanding AI data centre market. Developed in collaboration with Amazon Web Services (AWS), the photonics chip uses light rather than electricity, which helps increase speed and reduce power consumption in AI data centres. These chips are expected to be used in transceivers, which are crucial components in data centre infrastructure.
As top US software companies plan to invest $500 billion into AI infrastructure, there is rising demand for specialised chips, not only for computing but also for memory, power, and communications applications. ST’s new chip targets the communications sector, with a focus on improving the efficiency of transceivers, which are essential in AI data centres. The company also has a collaboration agreement with AWS to deploy this technology in their infrastructure later this year.
ST is working with a leading provider of optical solutions, although the company’s name has not been disclosed, to integrate the new chip into next-generation transceivers. The market for such devices, valued at $7 billion in 2024, is expected to grow significantly, reaching $24 billion by 2030. ST will begin mass production of these chips at its facility in Crolles, France.
For more information on these topics, visit diplomacy.edu.
TikTok is reportedly laying off staff from its trust and safety unit, which is responsible for content moderation, as part of a restructuring effort. The layoffs began on Thursday, affecting teams in Asia, Europe, the Middle East, and Africa. Adam Presser, TikTok’s operations head, sent a memo to staff informing them of the decision, though the company has not yet commented on the move.
The layoffs come at a time when TikTok’s future is uncertain. The app, used by nearly half of all Americans, faced a brief outage last month, followed by a law that came into effect in January, requiring its Chinese owner ByteDance to either sell TikTok or face a national security-related ban. TikTok CEO Shou Chew had previously testified before Congress about the company’s trust and safety measures, pledging to invest more than $2 billion in these efforts.
In line with a shift towards AI-driven content moderation, TikTok had already made significant layoffs in October, including staff in Malaysia. The company currently employs 40,000 trust and safety professionals globally, but the full scope of the recent cuts remains unclear.
For more information on these topics, visit diplomacy.edu.
Elon Musk’s social media company X is currently in discussions to raise funds from investors at a $44 billion valuation, according to Bloomberg News. Musk purchased the platform, formerly known as Twitter, for the same price in 2022.
The financing talks are still ongoing, with the potential for details to change or even for the discussions to be abandoned altogether, the report added. The US company has not yet responded to requests for comment on the matter.
In related news, last month, it was reported that Morgan Stanley, Bank of America, and Barclays were preparing to sell up to $3 billion in debt holdings in X.
For more information on these topics, visit diplomacy.edu.
President Donald Trump confirmed on Wednesday that he was in active discussions with China over the future of TikTok, as the US seeks to broker a sale of the popular app. Speaking to reporters aboard Air Force One, Trump revealed that talks were ongoing, underscoring the US government’s desire to address national security concerns tied to the app’s ownership by the Chinese company ByteDance. The move comes amid growing scrutiny over TikTok’s data security practices and potential links to the Chinese government.
The Trump administration has expressed concerns that TikTok could be used to collect sensitive data on US users, raising fears about national security risks. As a result, the US has been pushing for ByteDance to sell TikTok’s US operations to an American company. This would be part of an effort to reduce any potential influence from the Chinese government over the app’s data and operations. However, the process has faced complexities, with discussions involving multiple stakeholders, including potential buyers.
While the negotiations continue, the future of TikTok remains uncertain. If a sale is not agreed upon, the US has indicated that it could pursue further actions, including a potential ban of the app. As these talks unfold, the outcome could have significant implications for TikTok’s millions of American users and its business operations in the US, with both sides working to find a solution that addresses the security concerns while allowing the app to continue its success.
For more information on these topics, visit diplomacy.edu.
Resonac Holdings, a leading chip materials maker in Japan, is positioning itself to make strategic acquisitions after reducing its borrowing, according to CEO Hidehito Takahashi. Speaking to Reuters, Takahashi expressed the company’s intention to take an aggressive approach this year, particularly eyeing opportunities when a state-backed fund exits its competitor JSR, a photoresist maker recently taken private.
Resonac, formed by Showa Denko’s acquisition of Hitachi Chemical, has been divesting assets, including a planned partial spin-off of its petrochemical business. Takahashi sees JSR’s potential exit as a key opportunity for Resonac to expand its footprint in the semiconductor materials sector. Japan’s semiconductor market remains competitive, despite the country’s reduced role in chip manufacturing, and companies like Resonac must scale up to remain viable.
In addition to its expansion efforts, Resonac is establishing an R&D centre in Silicon Valley to strengthen its ties with firms in the region. However, Takahashi made it clear that the company is not currently considering manufacturing materials in the US, though future demand could prompt a reassessment of such plans.
For more information on these topics, visit diplomacy.edu.
Public interest groups have urged a US court to revisit its decision blocking the reinstatement of net neutrality rules. The appeal was submitted to the 6th Circuit Court of Appeals after a three-judge panel ruled that the Federal Communications Commission (FCC) lacked authority to enforce the rules.
These rules, first implemented in 2015 and later repealed under a different administration, aim to ensure equal access to the internet for all users.
Advocates, including Free Press and Public Knowledge, argue that the court’s ruling conflicts with a previous decision by another court. They emphasised the importance of protecting users from potential abuses by broadband providers, who might prioritise their own interests over fair access.
Net neutrality rules prevent internet providers from blocking or slowing content or giving preferential treatment to certain users. While state-level rules remain in place in regions like California, the court’s decision could halt federal efforts to oversee broadband regulation.
Earlier this year, the FCC had sought to reinstate these protections, but industry groups successfully argued for a temporary block.
Supporters of the rules include major tech companies, while telecom industry representatives view them as unnecessary and counterproductive. The ongoing legal battles could determine whether federal regulators will regain the ability to enforce open internet policies.
For more information on these topics, visit diplomacy.edu.
French AI company Mistral has introduced Mistral Saba, a language model tailored for Arabic-speaking users. Unlike its previous general-purpose models, Saba is designed to handle Arabic content more naturally and effectively, positioning Mistral as a competitor to US-based AI giants. The model also demonstrates strong performance in certain Indian languages due to cultural and linguistic overlaps.
The move signals Mistral’s growing interest in the Middle East, a region with increasing demand for AI-driven services. By offering an off-the-shelf model for Arabic-language support and content generation, the company aims to attract regional businesses and potential investors. Mistral has already secured funding from major US firms, but future investments from Middle Eastern partners could strengthen its global standing.
Mistral Saba is accessible via API and can be deployed on-premise, making it particularly appealing to industries such as finance, healthcare, and energy, where data privacy is crucial. The company has hinted at plans to develop more regional AI models, reinforcing its commitment to multilingual AI solutions, not just in France.
For more information on these topics, visit diplomacy.edu.
A US federal judge has ruled that Ross Intelligence infringed on Thomson Reuters’ copyright by using its legal research content to train an AI platform. The decision marks a significant moment in the ongoing debate over AI and intellectual property, as over 39 similar lawsuits progress through US courts.
Ross had argued that its use of Reuters’ Westlaw headnotes, summaries of legal decisions, was transformative, meaning it repurposed the material for a different function. However, the judge rejected this defence, ruling that Ross merely repackaged the content without adding significant new value. The company’s commercial intent also played a role in the ruling, as its AI system directly competed with Reuters’ legal research services.
The ruling could impact future AI copyright cases, particularly those involving generative AI models trained on publicly available content. While some believe it strengthens the case for content creators, others argue its scope is limited. Legal experts caution that further court decisions will be needed to define how copyright law applies to AI training in the long term.
For more information on these topics, visit diplomacy.edu.
The EU’s competition chief, Teresa Ribera, has criticised US President Donald Trump for disrupting the ‘trustful relationship’ between Europe and the United States, highlighting the unpredictability and instability of Washington’s actions. In an interview with Reuters, Ribera stated that while Europe must engage in negotiations with the White House on trade issues, it should not be pressured into changing laws that have already been passed. She emphasised that Europe must remain firm on its principles, including human rights, democracy, and the unity of the continent, despite Trump’s transactional political approach.
Ribera also responded to criticism from Trump and his government, who have labelled EU regulations on US tech companies as a form of taxation. She dismissed these claims, stressing that Europe’s legal framework aims to ensure stability and predictability for businesses. In contrast, she expressed concern over the uncertainty created by the White House’s frequent policy shifts, particularly with regard to tariffs on steel, aluminium, and other sectors. The EU has vowed to respond firmly to any tariff increases imposed by Trump.
In addition, Ribera revealed that the European Commission would soon decide whether tech giants Apple and Meta Platforms have complied with the EU’s Digital Markets Act. Both companies face potential fines if found in breach of the regulations, which are designed to curb their market dominance. Ribera also confirmed that investigations into Elon Musk’s social media platform X would continue, disregarding Musk’s ties to the US administration.
As tensions between Washington and Brussels continue to rise, Ribera reiterated that businesses seek a stable and predictable legal environment, something she feels is increasingly lacking in the US under Trump’s leadership. The EU remains committed to enforcing its regulations and protecting its values despite external pressures.
For more information on these topics, visit diplomacy.edu.
Vietnam is set to adopt new regulations allowing Elon Musk’s Starlink to offer satellite internet services in the country, granting it full control over its local subsidiary. This decision follows prolonged negotiations between Vietnam and SpaceX and marks a shift in Vietnam’s policy towards foreign investment in satellite internet services. The move is seen as a diplomatic gesture towards SpaceX, which could help alleviate tensions amid concerns over potential tariffs from US President Donald Trump.
The new rules, set to be approved by Vietnam’s parliament, will allow foreign companies with low-orbit satellite networks to operate under a pilot scheme until 2030. SpaceX’s efforts to enter Vietnam had previously been stalled in late 2023 due to a ban on foreign control, a requirement for Musk’s involvement. The new regulations are part of broader efforts by the Vietnamese government to remove obstacles in technological and scientific activities.
With plans for a $1.5 billion investment in Vietnam, SpaceX has been expanding its supplier network in the country. If Starlink attracts significant local subscribers, it could help reduce the growing trade surplus Vietnam has with the US, which reached a record $123.5 billion last year. As US tariffs continue to threaten Vietnam’s export-driven economy, the government is also seeking ways to balance trade by increasing imports from the US, including agricultural products.
The shift in Vietnam’s stance reflects a desire to play a more flexible role in international trade relations, especially as tensions between the US and its trade partners escalate under Trump’s administration. The outcome of this policy change could have significant implications for both Starlink’s expansion and Vietnam’s relationship with the US.
For more information on these topics, visit diplomacy.edu.
