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Retailers face new pressure under California privacy law

California has entered a new era of privacy and AI enforcement after the state’s privacy regulator fined Tractor Supply USD1.35 million for failing to honour opt-outs and ignoring Global Privacy Control signals. The case marks the largest penalty yet from the California Privacy Protection Agency.

In California, there is a widening focus on how companies manage consumer data, verification processes and third-party vendors. Regulators are now demanding that privacy signals be enforced at the technology layer, not just displayed through website banners or webforms.

Retailers must now show active, auditable compliance, with clear privacy notices, automated data controls and stronger vendor agreements. Regulators have also warned that businesses will be held responsible for partner failures and poor oversight of cookies and tracking tools.

At the same time, California’s new AI law, SB 53, extends governance obligations to frontier AI developers, requiring transparency around safety benchmarks and misuse prevention. The measure connects AI accountability to broader data governance, reinforcing that privacy and AI oversight are now inseparable.

Executives across retail and technology are being urged to embed compliance and governance into daily operations. California’s regulators are shifting from punishing visible lapses to demanding continuous, verifiable proof of compliance across both data and AI systems.

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US greenlights Nvidia chip exports to UAE under new AI pact

The US has approved its first export licences for Nvidia’s advanced AI chips destined for the United Arab Emirates, marking a concrete step in the bilateral AI partnership announced earlier in 2025.

These licences come under the oversight of the US Commerce Department’s Bureau of Industry and Security, aligned with a formal agreement between the two nations signed in May.

In return, the UAE has committed to investing in the United States, making this a two-way deal. The licences do not cover every project yet: some entities, such as the AI firm G42, are currently excluded from the approved shipments.

The UAE sees the move as crucial to its AI push under Vision 2031, particularly for funding data centre expansion and advancing research in robotics and intelligent systems. Nvidia already collaborates with Abu Dhabi’s Technology Innovation Institute (TII) in a joint AI and robotics lab.

Challenges remain. Some US officials cite national security risks, especially given the UAE’s ties and potential technology pathways to third countries.

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Sanders warns AI could erase 100 million US jobs

Senator Bernie Sanders has warned that AI and automation could eliminate nearly 100 million US jobs within the next decade unless stronger worker protections are introduced.

The report, titled The Big Tech Oligarchs’ War Against Workers, claims that companies such as Amazon, Walmart, JPMorgan Chase, and UnitedHealth already use AI to reduce their workforces while rewarding executives with multimillion-dollar pay packages.

According to the findings, nearly 90% of US fast-food workers, two-thirds of accountants, and almost half of truck drivers could see their jobs replaced by automation. Sanders argues that technological progress should enhance people’s lives rather than displace them,

His proposals include introducing a 32-hour workweek without loss of pay, a ‘robot tax’ for companies that replace human labour, and giving workers a share of profits and board representation.

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A new AI strategy by the EU to cut reliance on the US and China

The EU is preparing to unveil a new strategy to reduce reliance on American and Chinese technology by accelerating the growth of homegrown AI.

The ‘Apply AI strategy’, set to be presented by the EU tech chief Henna Virkkunen, positions AI as a strategic asset essential for the bloc’s competitiveness, security and resilience.

According to draft documents, the plan will prioritise adopting European-made AI tools across healthcare, defence and manufacturing.

Public administrations are expected to play a central role by integrating open-source EU AI systems, providing a market for local start-ups and reducing dependence on foreign platforms. The Commission has pledged €1bn from existing financing programmes to support the initiative.

Brussels has warned that foreign control of the ‘AI stack’ (the hardware and software that underpin advanced systems) could be ‘weaponised’ by state and non-state actors.

These concerns have intensified following Europe’s continued dependence on American tech infrastructure. Meanwhile, China’s rapid progress in AI has further raised fears that the Union risks losing influence in shaping the technology’s future.

Several high-potential AI firms have already been hosted by the EU, including France’s Mistral and Germany’s Helsing. However, they rely heavily on overseas suppliers for software, hardware, and critical minerals.

The Commission wants to accelerate the deployment of European AI-enabled defence tools, such as command-and-control systems, which remain dependent on NATO and US providers. The strategy also outlines investment in sovereign frontier models for areas like space defence.

President Ursula von der Leyen said the bloc aims to ‘speed up AI adoption across the board’ to ensure it does not miss the transformative wave.

Brussels hopes to carve out a more substantial global role in the next phase of technological competition by reframing AI as an industrial sovereignty and security instrument.

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Alibaba shares climb to highest since 2021

Alibaba’s $250 billion rebound has turned it into China’s hottest AI stock, with analysts saying the rally may still have room to run.

The group’s US-listed shares have more than doubled this year as Beijing pushes for greater technological self-reliance. Despite the surge, the stock remains 65% below its 2020 peak, keeping valuations attractive compared with US giants like Microsoft and Amazon.

Fund managers say global investors still hold relatively minor positions in Alibaba, creating scope for further gains. Some caution remains, however, with Chinese short bets rising last month and price wars in food delivery threatening to dent margins.

Alibaba trades roughly 22 times the estimated forward earnings in Hong Kong, which is in line with the Hang Seng Tech Index but below its historic peak and US peers. Investors say its valuation looks reasonable given its AI push and improving sentiment.

Shares touched their highest level since August 2021 on Friday, standing out against declines in the broader Hong Kong market. The key test will be whether Alibaba can convert its AI ambitions into mainstream revenues.

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Taiwan rejects US proposal on semiconductor production split

Taiwan has dismissed reports of a US plan to divide global semiconductor production evenly between the two sides. Vice Premier Cheng Li-chiun, returning from tariff talks in Washington, said her negotiating team had never discussed or agreed to a 50-50 split on chipmaking.

‘Rest assured, we did not discuss this issue during this round of talks, nor would we agree to such conditions,’ Cheng told reporters.

The clarification followed comments by US Commerce Secretary Howard Lutnick, who suggested Washington was seeking such an arrangement. Neither the US Department of Commerce nor the Office of the Trade Representative commented on the reports.

Taiwan, home to leading chipmaker TSMC, currently faces a 20% tariff on exports to the United States but hopes negotiations will lead to more favourable trade terms.

TSMC is already expanding production abroad with a $165 billion investment in factories in Arizona, though the majority of its output will remain in Taiwan. The government has emphasised that the ongoing trade talks with Washington have achieved ‘certain progress’ but remain focused on tariffs, not production quotas.

Separately, President Lai Ching-te met with US officials to discuss agricultural trade. Taiwan pledged to purchase $10 billion worth of American agricultural products, including soybeans, wheat, corn, and beef, over the next four years, signalling broader economic cooperation despite tensions over chips.

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Few Americans rely on AI chatbots for news

A recent Pew Research survey shows that relatively few Americans use AI chatbots like ChatGPT to get news. About 2 percent say they often get news this way, and 7 percent say they do so sometimes.

The majority of US adults thus do not turn to AI chatbots as a regular news source, signalling a limited role for chatbots in news dissemination, at least for now.

However, this finding is part of a broader pattern: despite the growing usage of chatbots, news consumption via these tools remains in the niche. Pew’s data also shows that 34 percent of US adults report using ChatGPT, which has roughly doubled since 2023.

While AI chatbots are not yet mainstream for news, their limited uptake raises questions about trust, accuracy and the user motivation behind news consumption.

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Germany invests €1.6 billion in AI but profits remain uncertain

In 2025 alone, €1.6 billion is being committed to AI in Germany as part of its AI action plan.

The budget, managed by the Federal Ministry of Research, Technology and Space, has grown more than twentyfold since 2017, underlining Berlin’s ambition to position the country as a European hub for AI.

However, experts warn that the financial returns remain uncertain. Rainer Rehak of the Weizenbaum Institute argues that AI lacks a clear business model, calling the current trend an ‘investment game’ fuelled by speculation.

He cautioned that if real profits do not materialise, the sector could face a bubble similar to past technology hype cycles. Even OpenAI chief Sam Altman has warned of unsustainable levels of investment in AI.

Germany faces significant challenges in computing capacity. A study by the eco Internet Industry Association found that the country’s infrastructure may only expand to 3.7 gigawatts by 2030, while demand from industry could exceed 12 gigawatts.

Deloitte forecasts a capacity gap of around 50% within five years, with the US already maintaining more than twenty times Germany’s capacity. Without massive new investments in data centres, Germany risks lagging further behind.

Some analysts believe the country needs a different approach. Professor Oliver Thomas of Osnabrück University argues that while large-scale AI models are struggling to find profitability, small and medium-sized enterprises could unlock practical applications.

He advocates for speeding up the cycle from research to commercialisation, ensuring that AI is integrated into industry more quickly.

Germany has a history of pioneering research in fields such as computer technology, MP3, and virtual and augmented reality, but much of the innovation was commercialised abroad.

Thomas suggests focusing less on ‘made in Germany’ AI models and more on leveraging existing technologies from global providers, while maintaining digital sovereignty through strong policy frameworks.

Looking ahead, experts see AI becoming deeply integrated into the workplace. AI assistants may soon handle administrative workflows, organise communications, and support knowledge-intensive professions.

Small teams equipped with these tools could generate millions in revenue, reshaping the country’s economic landscape.

Germany’s heavy spending signals a long-term bet on AI. But with questions about profitability, computing capacity, and competition from the US, the path forward will depend on whether investments can translate into sustainable business models and practical use cases across the economy.

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OpenAI deal boosts Etsy stock in dramatic market response

Etsy’s shares rose almost 16% on Monday following news that the platform is partnering with OpenAI to enable direct purchases through ChatGPT.

Under the new “Instant Checkout” feature, US ChatGPT users can purchase products directly from US Etsy sellers within the chatbot interface. OpenAI plans to bring more merchants, such as Shopify sellers, into the system soon.

The juxtaposition of AI and e-commerce signalled to markets a leap in monetisation potential for ChatGPT. Investors viewed the move as shifting ChatGPT from a content tool into a transactional platform. Shopify’s shares also saw gains.

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Google expands Search Live to US users

Google has expanded its Search Live feature to all app users in the US after several months of testing.

The tool allows people to hold voice conversations with AI Mode inside Google Search and even share a live camera feed. With this, the system can interpret surroundings, respond in real time, and suggest web links for deeper exploration.

The feature, powered by a customised version of Google’s Gemini chatbot, can run in the background while other apps are open. Google highlighted uses ranging from travel help to troubleshooting tasks.

Search Live is currently available only in English in the US. It can be enabled in the Google app by tapping the new Live icon or through Google Lens by selecting the Live button at the bottom of the screen.

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