Chinese AI company iFlyTek is expanding its European operations as trade tensions with the US continue to escalate.
Vice President Vincent Zhan stated that North America remains the firm’s largest market outside China, but new tariffs introduced by United States President Donald Trump have made diversification a priority. The company is looking to reduce supply chain risks while strengthening its presence in Europe.
iFlyTek, known for its voice recognition technology, currently operates in France and Hungary and is planning to open a Paris office soon.
Future expansion targets include Spain and Italy, where the company is assessing partnerships. The firm unveiled a new tablet at the Mobile World Congress in Barcelona, highlighting its commitment to the European market.
The company has faced US restrictions since being placed on a trade blacklist in 2019, limiting access to American-made components such as Nvidia’s AI chips. In response, iFlyTek has turned to domestic alternatives, using Huawei chips and integrating AI models from Chinese start-ups like DeepSeek.
Despite these challenges, Zhan expressed confidence in China‘s growing AI chip industry, which is helping firms like iFlyTek stay competitive.
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The United States Department of Labor is investigating Scale AI, a data labeling startup backed by Nvidia, Amazon, and Meta, for its compliance with fair pay and working conditions under the Fair Labor Standards Act.
The inquiry began nearly a year ago during Joe Biden’s presidency, with officials examining whether the company meets federal labour regulations. Scale AI has been cooperating with the department to clarify its business practices and the evolving nature of the AI sector.
Founded in 2016, Scale AI plays a crucial role in training advanced AI models by providing accurately labeled data. The company also operates a platform where researchers exchange AI-related insights, with contributors spanning over 9,000 locations worldwide.
In response to the investigation, a company spokesperson stated that the majority of payments to contributors are made on time, with 90% of payment-related inquiries resolved within three days.
Valued at $14 billion following a late-stage funding round last year, Scale AI serves major clients such as OpenAI, Cohere, Microsoft, and Morgan Stanley.
The company insists that contributor feedback is overwhelmingly positive and maintains that it prioritises fair pay and support for its workforce.
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The US House Judiciary Committee subpoenaed Alphabet on Thursday, demanding information on its communications with the Biden administration regarding content moderation policies. The committee, led by Republican Jim Jordan, also requested similar communications with external companies and groups.
The subpoena specifically seeks details on discussions about restricting or banning content related to US President Donald Trump, Elon Musk, COVID-19, and other conservative topics. Republicans have accused Big Tech companies of suppressing conservative viewpoints, with the Federal Trade Commission warning that coordinating policies or misleading users could breach the law.
Last year, Meta Platforms acknowledged pressure from the Biden administration to censor content, but Alphabet has not publicly distanced itself from similar claims. A Google spokesperson stated the company will demonstrate its independent approach to policy enforcement.
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AxeleraAI, a promising AI chipmaker based in Eindhoven, Netherlands, has been awarded a €61.6 million ($66 million) grant by the European Union to develop its Titania chip.
The grant, provided by EuroHPC, aims to bolster Europe’s AI capabilities by supporting the development of a chip specifically designed for “inference” computing in data centres.
However, this initiative is part of the EU’s broader strategy to enhance its AI sector and reduce its dependency on US and Chinese technologies.
Fabrizio Del Maffeo, CEO of AxeleraAI, expressed pride in the award, viewing it as a significant opportunity for the Dutch company to expand its business.
The new chip will be built on the open-source RISC-V standard, a growing alternative to more traditional chip systems like those from Intel and Arm. AxeleraAI’s existing Metis chip is already being used in edge AI applications, such as monitoring safety in factories through CCTV analysis.
While the company does not aim to compete with industry giants like Nvidia in training AI models, Del Maffeo stated that the Titania chip is designed to excel in running large AI models once they are trained.
This shift towards more affordable inference computing is expected to become increasingly important as the demand for AI solutions grows. AxeleraAI has already raised $200 million from investors, including Samsung, since its founding in 2021.
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Malaysia is engaging with its semiconductor industry to address the potential impact of US tariffs on chips. The US has signalled its intention to impose tariffs of up to 25% on semiconductors, which could significantly affect Malaysia, one of the top exporters of chips to the US Last year, Malaysia shipped $16.2 billion worth of chips, making up nearly 20% of US semiconductor imports.
Trade Minister Tengku Zafrul Aziz said the government is in talks with companies to see if they can absorb the higher costs caused by the tariffs. The discussions are focused on whether consumers or companies will bear the increased expenses. While the government has not yet decided whether it will provide financial support, Malaysia’s strong semiconductor sector, which includes US giants like Intel and GlobalFoundries, remains a critical part of the economy.
Despite concerns over the tariffs, Tengku Zafrul expressed confidence that Malaysia’s data centres would not be affected by new US export restrictions on advanced chips. The country has become a major hub for data centres, attracting investments from companies such as Microsoft, Google, and Amazon. The growth of AI-related demand is expected to drive further expansion, and Tengku Zafrul indicated that the sector’s trajectory is strong enough to absorb any new challenges.
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Italy’s ruling League party is urging the government to choose Elon Musk’s Starlink over French-led Eutelsat for secure satellite communications, arguing that Starlink’s technology is more advanced.
Prime Minister Giorgia Meloni’s government is looking for an encrypted communication system for officials operating in high-risk areas, with both Starlink and Eutelsat in talks for the contract.
League leader Matteo Salvini, a strong supporter of former US President Donald Trump, has emphasised the need to prioritise US technology over a French alternative.
Meanwhile, Eutelsat’s CEO confirmed discussions with Italy as the country seeks an interim solution before the EU’s delayed IRIS² satellite system becomes operational.
Meloni’s office has stated that no formal negotiations have taken place and that any decision will be made transparently.
However, opposition parties have raised concerns over Starlink’s involvement, given recent speculation that Musk could cut off Ukraine from its service, potentially affecting national security interests.
Musk responded positively to the League’s endorsement, calling it ‘much appreciated’ on his social media platform X.
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A former top National Security Agency official has warned that widespread federal job cuts could severely undermine US cybersecurity and national security.
Rob Joyce, former NSA director of cybersecurity, told a congressional committee that eliminating probationary employees would weaken the government’s ability to combat cyber threats, particularly those from China.
The remarks were made during a House Select Committee hearing on China‘s cyber operations targeting critical United States infrastructure and telecommunications.
More than 100,000 federal workers have left their jobs through early retirement or layoffs as part of President Donald Trump’s efforts to shrink government agencies, with support from billionaire advisor Elon Musk.
While national security roles were supposed to be exempt, some cybersecurity positions have still been affected.
The Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) has already cut over 130 positions, raising concerns about the government’s ability to protect critical systems.
The White House and NSA declined to comment on the impact of the job reductions.
A DHS spokesperson confirmed that the cuts are expected to save $50 million and that further reductions in ‘wasteful positions’ are being considered.
However, critics argue that the loss of skilled personnel in cybersecurity roles could leave the country more vulnerable to foreign threats.
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Singapore authorities have filed additional charges against three men in a widening investigation into server fraud, which may involve AI chips, court documents revealed on Thursday.
The suspects are accused of deceiving tech firms Dell and Super Micro by falsely representing the final destination of the servers they purchased.
Officials have stated the servers could contain Nvidia chips but have not confirmed whether they fall under US export controls.
The case is part of a broader probe involving 22 individuals and companies suspected of fraudulent transactions. US authorities are also investigating whether Chinese AI firm DeepSeek has been using restricted American chips.
Singapore has confirmed that some servers were sent to Malaysia, where authorities are now examining if any laws were violated.
Two suspects, Aaron Woon and Alan Wei, face additional fraud charges, while a third, Li Ming, had his earlier charge updated to include an alleged offence dating back to 2023.
Lawyers representing the men have either declined to comment or stated that the case is complex due to its international scope.
Meanwhile, Singapore police have seized 42 electronic devices and are analysing bank statements as they work with foreign law enforcement to trace the movement of funds.
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Microsoft has reportedly scaled back parts of its agreements with cloud computing provider CoreWeave due to delivery issues and missed deadlines, according to the Financial Times.
Despite maintaining several contracts worth billions, the tech giant has moved away from certain deals, though the decision is said to be unrelated to any broader changes in its data centre strategy.
CoreWeave, backed by Nvidia, specialises in providing high-powered AI computing resources and competes with major cloud providers like Microsoft Azure and Amazon AWS.
The company is preparing for a major initial public offering (IPO) in New York, aiming for a valuation exceeding $35 billion and seeking to raise over $3 billion.
The cloud provider recently expanded its capabilities by acquiring AI developer platform Weights & Biases for an undisclosed sum.
Neither Microsoft, CoreWeave, nor Nvidia have responded to requests for comment regarding the report.
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The United States has indicted ten individuals, including employees of the Chinese tech company i-Soon, for their involvement in a years-long cyber espionage campaign that targeted various US government agencies and organisations worldwide.
The campaign allegedly stole sensitive data from entities such as the US Defense Intelligence Agency, the Department of Commerce, and foreign ministry of Taiwan. The hackers, associated with i-Soon, were reportedly hired by Chinese intelligence agencies to breach email systems for substantial payments.
Along with the indictments, the US Treasury Department has imposed sanctions on Shanghai-based Heiying Information Technology and its founder, Zhou Shuai, accusing them of selling stolen data and providing access to compromised networks.
The data reportedly included information from US critical infrastructure networks. Some of this stolen data was later acquired by a previously sanctioned Chinese hacker, Yin Kecheng.
The Chinese embassy in Washington responded by condemning the sanctions and stating that it would take necessary actions to protect Chinese companies and citizens.
The US government’s aggressive stance is part of an ongoing effort to curb Chinese cyber espionage activities and defend its digital infrastructure.
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