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Artificial Intelligence: the new technology that has taken the sector by storm. 

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The European Union’s parliament on Wednesday endorsed the world’s first major set of regulatory ground rules to govern the mediatized artificial intelligence at the forefront of tech investment.

The EU brokered provisional political consensus in early December, and it was then endorsed in the Parliament’s Wednesday session, with 523 votes in favour, 46 against and 49 votes not cast.

“Europe is NOW a global standard-setter in AI,” Thierry Breton, the European Commissioner for internal market, wrote on X.

President of the European Parliament, Roberta Metsola, described the act as trail-blazing, saying it would enable innovation, while safeguarding fundamental rights.

“Artificial intelligence is already very much part of our daily lives. Now, it will be part of our legislation too,” she wrote in a social media post.

Dragos Tudorache, a lawmaker who oversaw EU negotiations of the agreement, hailed the agreement, but noted that the biggest hurdle remains implementation.

Born in 2021, the EU AI Act divides the technology into categories of risk, ranging from “unacceptable” — which would see the technology banned — to high, medium and low hazard.

The regulation is expected to enter into force at the end of the legislature in May, after passing final checks and receiving endorsement from the European Council.

Some EU countries have previously advocated self-regulation over government-led curbs, amid concerns that stifling regulation could set hurdles in Europe’s progress to compete with Chinese and American companies in the tech sector. Detractors have included Germany and France, which house some of Europe’s promising AI startups.

The EU has been scrambling to keep pace with the consumer impact of tech developments and the market supremacy of key players.

Last week, the Union brought into force landmark competition legislation set to rein in U.S. giants. Under the Digital Markets Act, the EU can crack down on anti-competitive practices from major tech companies and force them to open out their services in sectors where their dominant position has stifled smaller players and choked freedom of choice for users. Six firms — U.S. titans Alphabet, Amazon, Apple, Meta, Microsoft and China’s Bytedance — have been put on notice as so-called “gatekeepers.”

Concerns have been mounting over the potential for abuse of artificial intelligence, even as heavyweight players like Microsoft, Amazon, Google and chipmaker Nvidia beat the drum for AI investment.

AI investing focus should turn to adopters outside of tech, says Morgan Stanley's Lisa Shalett

Governments fear the possibility of deepfakes — forms of artificial intelligence that generate false events, including photos and videos — being deployed in the lead-up to a swathe of key global elections this year.

Some AI backers are already self-regulating to avoid disinformation. On Tuesday, Google announced it will limit the type of election-related queries that can be asked of its Gemini chatbot, saying it has already implemented the changes in the U.S. and in India.

“The AI Act has pushed the development of AI in a direction where humans are in control of the technology, and where the technology will help us leverage new discoveries for economic growth, societal progress, and to unlock human potential,” Tudorache said on social media on March 12. 

“The AI Act is not the end of the journey, but, rather, the starting point for a new model of governance built around technology. We must now focus our political energy in turning it from the law in the books to the reality on the ground,” he added. 

This breaking news story is being updated.

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Google invests in BlackRock-backed Taiwanese solar developer to boost energy capacity amid AI boom

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Google invests in BlackRock-backed Taiwanese solar developer to boost energy capacity amid AI boom

The aerial view reveals the mutual benefits of combining solar energy production and agricultural land use. Farmers can lease their land to solar energy developers, diversifying their income streams while maintaining agricultural activities on the remaining areas. This symbiotic relationship supports sustainable development by reducing greenhouse gas emissions and promoting renewable energy adoption.

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Google will partner with BlackRock to develop a 1 gigawatt pipeline of new solar capacity in Taiwan, the U.S. tech giant announced Monday as it seeks to boost energy capacity and cut carbon emissions amid the artificial intelligence boom.

The deal will see Google make a capital investment, yet to be approved by regulators, in Taiwanese solar developer New Green Power “to facilitate the buildout of its large-scale solar pipeline.”

Google did not reveal how much it was investing into New Green Power, a BlackRock portfolio firm.

The investment will boost clean energy on Taiwan’s local electricity grid, and help Google reach its goal of achieving net-zero emissions across all its operations and value chain by 2030, the company said.

The new solar capacity will help power Google’s data centers and cloud region in Taiwan, the press release said. Some of the clean energy capacity will also be offered to Google’s chip suppliers and manufacturers in the region, it said.

“We expect to procure up to 300 [megawatts] of solar energy from this pipeline through power purchase agreements (PPAs) and the associated energy attribute certificates (Taiwan Renewable Energy Certificates or T-RECS) to help meet electricity demand from our data center campus, cloud region and office operations in Taiwan,” Amanda Peterson Corio, global head of data center energy at Google, said in a blog post Monday.

Taiwan produces nearly 60% of the world’s semiconductor chips and accounts for an even bigger share of advanced AI processors, according to global consulting firm EY. Chip fabrication facilities are among the most energy-intensive facilities in the world as chip manufacturing is a long and complex process.

Solar energy stocks gain a significant tailwind from data centers and digitalization

However, about 97% of Taiwan’s energy is generated from non-renewable sources, including coal and natural gas, according to data from Energy Administration under Taiwan’s Ministry of Economic Affairs.

This calls for the need to boost renewable energy sources.

“As we witness growth in demand for digital services, powered by AI and data-centric technologies, it becomes imperative to invest in clean energy,” said David Giordano, BlackRock’s global head of climate infrastructure.

Singapore in May said it was pushing for green data centers as the explosive demand for artificial intelligence puts a strain on energy resources. The goal is to provide at least 300 megawatts of additional capacity in the near term, with more through “green energy deployments,” the government said.

Renewable energy development in Asia-Pacific is growing strongly, but from a low base, a Boston Consulting Group report on April 23 showed. By 2030, renewable energy is predicted to account for 30% to 50% of the energy mix in most of the region’s markets, the report said, adding that “significant investment” is needed.

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Gen Z’s shopping decisions are heavily driven by TikTok and influencers, report finds

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Gen Z's shopping decisions are heavily driven by TikTok and influencers, report finds

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Generation Z in Asia-Pacific is taking fashion cues from idols and influencers, heavily driven by TikTok, a new KPMG report showed.

“Where past generations visited department stores or shopping malls to buy basics or check out new styles, Gen Z are looking for trends online, following idols and influencers and aspiring to wear the same clothing,” the report said.

The report surveyed 7,000 consumers across 14 markets including China, Singapore, Indonesia, Vietnam and the Philippines. Nearly half of the respondents in each market were in the Gen Z age group – defined as 18 to 24 years old in the survey.

Gen Z ranked social commerce (63%) and livestreaming commerce (57%) as important to their shopping experience, the survey revealed. Social commerce was the most popular form of retail tech among Gen Z – especially in China, Vietnam, Indonesia and the Philippines.

Gen Z is known as the first generation to grow up with the internet and digital devices as a part of daily life.

“The fusion of social media and e-commerce represents the frontier of engaging Gen Z in a way that resonates with their ethos,” said Irwan Djaja, partner and head of advisory of KPMG Indonesia.

Starbucks trying to revive Gen Z consumer with Boba tea, says Casey Lewis

As a result, brands are reassessing their supply chain strategies and emphasizing social commerce platforms to cater to Gen Z. They are particularly focused on TikTok and Instagram, where influencer recommendations play a very significant role.

“TikTok is a juggernaut. It is still growing and has an unbelievable number of viewers and influence,” said Eric Pong, co-founder of AfterShip, an e-commerce experience software-as-a-service company. Pong was one of the company executives interviewed in the report.

“TikTok business – strong in Asia – gets businesses to advertise on TikTok, using influencers and key opinion leaders and serving ads to direct viewers back to websites,” KPMG analysts said.

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Amazon is doubling value of credits for some startups to build on AWS as Microsoft cloud gains ground

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Amazon is doubling value of credits for some startups to build on AWS as Microsoft cloud gains ground

Amazon will double the value of credits it offers some startups to use its cloud infrastructure, CNBC has learned, as the company faces heightened competition from Microsoft in artificial intelligence services.

Starting July 1, startups that have raised a Series A round of funding in the past year will be eligible for $200,000 in credits through AWS’ Activate program, up from $100,000 before, the Amazon cloud unit said in an email to venture capitalists this week. Seed-stage startups will still be eligible for $100,000 in credits, AWS said.

Two people briefed on the changes confirmed the credit increase, though they asked not to be named because the information is private.

Matt Garman, who was recently promoted to CEO of AWS after running sales and marketing, was meeting with founders in Silicon Valley this week, the people said. Garman told the execs that collaborating with startups would always be a primary focus, one of the people said, adding that Garman described AI companies as AWS’ ideal customers.

An AWS spokesperson confirmed the increase in credits and Garman’s visit to Silicon Valley. The spokesperson added that in the past, the $100,000 would expire in one year, while the $200,000 credit will now expire in three years.

Amazon, which is best known for its massive online retail operation, derives most of its profit from AWS, a business it launched in 2006, well before rivals Microsoft and Google hit the scene. AWS leads the market, with $25 billion in revenue in the first quarter, up 17% from a year earlier.

But Microsoft Azure and Google Cloud are growing more quickly, and are benefiting from rapidly advancing AI models. Backed by Microsoft, OpenAI launched ChatGPT in late 2022 on Azure, and has since attracted a wave of AI workloads to Microsoft from companies big and small. Google has a number of large language models, most notably Gemini.

Amazon has been trying to catch up in generative AI and has poured billions of dollars into OpenAI challenger Anthropic.

Last month, AWS CEO Adam Selipsky announced his resignation after three years running the business, with Garman named as his successor. During Selipsky’s time at the helm, Microsoft and Google increased their share of the cloud infrastructure market. One analyst told CNBC that Microsoft “ran laps around” AWS in generative AI.

Startups have long been fertile ground for cloud infrastructure companies, as they try and lure ambitious founders who could be building the next multibillion-dollar business.

In November, Microsoft announced a partnership with Silicon Valley accelerator Y Combinator that would provide participating startups with $350,000 in Azure credits and access to graphics processing units (GPUs) for training AI models, a spokesperson said. Microsoft has since extended the $350,000 credit incentive to other accelerators, including the AI Grant.

Startups enrolled in Microsoft’s Founders Hub program, which doesn’t require previous venture funding, can receive up to $150,000 in Azure credits over four years.

In addition to its Activate offering, Amazon has a new 10-week generative AI accelerator program. Participants will be able to access up to $1 million in cloud credits, according to the website.

Earlier on Friday, Amazon’s head scientist, Rohit Prasad, told employees that the company has hired David Luan, co-founder and CEO of AI startup Adept, along with some of Luan’s colleagues. “Amazon is also licensing Adept’s agent technology, family of state-of-the-art multimodal models, and a few datasets,” Adept said in a blog post.

WATCH: AWS will boost investments in Singapore’s cloud infrastructure by $9 billion

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