Latest Technology News Asia | Tech Wire Asia | Latest Insights https://techwireasia.com/category/latest/ Where technology and business intersect Mon, 14 Apr 2025 13:10:48 +0000 en-GB hourly 1 https://techwireasia.com/wp-content/uploads/2025/02/cropped-TECHWIREASIA_LOGO_CMYK_GREY-scaled1-32x32.png Latest Technology News Asia | Tech Wire Asia | Latest Insights https://techwireasia.com/category/latest/ 32 32 First it was Ghibli, now it’s the AI Barbie Box trend https://techwireasia.com/2025/04/first-it-was-ghibli-now-its-the-ai-barbie-box-trend/ Mon, 14 Apr 2025 13:10:48 +0000 https://techwireasia.com/?p=241723 Following the Ghibli portraits, the AI Barbie trend comes to LinkedIn. Blending nostalgia with self-promotion, produces brand interest but little celebrity uptake. After gaining attention with Studio Ghibli-style portraits, ChatGPT’s image generator is now powering a new wave of self-representation online – this time with users turning themselves into plastic action figures. What began as […]

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  • Following the Ghibli portraits, the AI Barbie trend comes to LinkedIn.
  • Blending nostalgia with self-promotion, produces brand interest but little celebrity uptake.
  • After gaining attention with Studio Ghibli-style portraits, ChatGPT’s image generator is now powering a new wave of self-representation online – this time with users turning themselves into plastic action figures.

    What began as a quirky trend on LinkedIn has now spread to platforms like Instagram, TikTok, Facebook, and X. The trend includes different takes, but the “AI Action Figure” version is among the most common. It typically shows a person recreated as a doll encased in a plastic blister pack, often accessorised with work-related items like laptops, books, or coffee mugs. That’s fitting, considering the trend’s initial traction among professionals and marketers on LinkedIn.

    Other versions draw inspiration from more recognisable aesthetics, like the “Barbie Box Challenge,” where the AI-generated figure is styled to resemble a vintage Barbie.

    The rise of the virtual dolls follows the earlier success of the Studio Ghibli-style portraits, which pushed ChatGPT’s image capabilities into the spotlight. That earlier trend sparked some backlash related to environmental, copyright, and creative concerns – but so far, the doll-themed offshoot hasn’t drawn the same level of criticism.

    What’s notable about the trends is the consistent use of ChatGPT as the generator of choice. OpenAI’s recent launch of GPT-4o, which includes native image generation, attracted such a large volume of users that the firm had to temporarily limit image output and delay rollout for free-tier accounts.

    While the popularity of action figures hasn’t yet matched that of Ghibli portraits, it does highlight ChatGPT’s role in introducing image tools to a broader user base. Many of these doll images are shared by users with low engagement, and mostly in professional circles. Some brands, including Mac Cosmetics and NYX, have posted their own versions, but celebrities and influencers have largely stayed away. One notable exception is US Representative Marjorie Taylor Greene, who shared a version of herself with accessories including a Bible and a gavel, calling it “The Congresswoman MTG Starter Kit.”

    What the AI Barbie trend looks like

    The process involves uploading a photo into ChatGPT and prompting it to create a doll or action figure based on the image. Many users opt for the Barbie aesthetic, asking for stylised packaging and accessories that reflect their personal or professional identity. The final output often mimics retro Barbie ads from the 1990s or early 2000s. Participants typically specify details like:

    • The name to be displayed on the box
    • Accessories, like pets, smartphones, or coffee mugs
    • The desired pose, facial expression, or outfit
    • Packaging design elements like colour or slogans

    Users often iterate through several versions, adjusting prompts to better match their expectations. The theme can vary widely – from professional personas to hobbies or fictional characters – giving the trend a broad creative range.

    How the trend gained momentum

    The idea gained visibility in early 2025, beginning on LinkedIn where users embraced the “AI Action Figure” format. The Barbie-style makeover gained traction over time, tapping into a blend of nostalgia and visual novelty. Hashtags like #aibarbie and #BarbieBoxChallenge have helped to spread the concept. While the Barbie-inspired version has not gone as viral as the Ghibli-style portraits, it has maintained steady traction on social media, especially among users looking for lighthearted ways to express their personal branding.

    https://youtube.com/watch?v=Z6S6zQQ8sCQ%3Fsi%3DPJOwLgHWngf21YhL

    Using ChatGPT’s image tool

    To participate, users must access ChatGPT’s image generation tool, available with GPT-4o. The process begins by uploading a high-resolution photo – preferably full-body – and supplying a prompt that describes the desired figurine.

    To improve accuracy, prompts usually include:

    • A theme (e.g., office, workout, fantasy)
    • Instructions for how the figure should be posed
    • Details about clothing, mood, or accessories
    • A note to include these elements inside a moulded box layout

    Reiterating the intended theme helps ensure consistent results. While many focus on work-related personas, the style is flexible – some choose gym-themed versions, others opt for more humorous or fictional spins.

    Behind the spike in image activity

    ChatGPT’s image generation tool launched widely in early 2025, and its use quickly surged. According to OpenAI CEO Sam Altman, the demand became so intense that GPU capacity was stretched thin, prompting a temporary cap on image generation for free users. Altman described the load as “biblical demand” in a social media post, noting that the feature had drawn more than 150 million active users in its first month. The tool’s ability to generate everything from cartoons to logos – and now custom action figures – has played a central role in how users explore visual identity through AI.

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    Jio’s open telecom AI platform: four tech giants forge India-led network revolution https://techwireasia.com/2025/04/jios-open-telecom-ai-platform-four-tech-giants-forge-india-led-network-revolution/ Fri, 11 Apr 2025 08:50:59 +0000 https://techwireasia.com/?p=241716 Open Telecom AI Platform aims to redefine network operations. Integrates-edge AI on all telecom layers. New partnership could position India as leader in telecom innovation. The Telecom AI Platform collaboration between Jio Platforms Limited (JPL), AMD, Cisco, and Nokia revealed at last month’s Mobile World Congress 2025 may represent a significant shift in how telecom […]

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  • Open Telecom AI Platform aims to redefine network operations.
  • Integrates-edge AI on all telecom layers.
  • New partnership could position India as leader in telecom innovation.
  • The Telecom AI Platform collaboration between Jio Platforms Limited (JPL), AMD, Cisco, and Nokia revealed at last month’s Mobile World Congress 2025 may represent a significant shift in how telecom networks evolve in coming years.

    The partnership focuses on developing an open AI framework for network operations, and comes as service providers worldwide face mounting pressure to improve efficiency and create new revenue streams.

    Announced on March 3, the alliance brings together expertise across RAN, routing, AI data centres, security, and telecom infrastructure to create what the companies describe as a “central intelligence layer” for telecom and digital services. The multi-domain intelligence framework aims to integrate AI and automation in all network operations, with Jio serving as the first implementation case.

    “We are building a multimodal, multi-domain orchestrated workflow platform […] for the telecom industry,” said Mathew Oommen, Group CEO of Reliance Jio. He highlighted the platform’s potential to transform networks into “self-optimising, customer-aware ecosystems.”

    Technical foundations and AI

    What sets the Telecom AI Platform apart is its technological approach. The platform will be LLM-agnostic and use open APIs, using multiple forms of artificial intelligence including agentic AI, general and domain-specific LLMs, Small Language Models (SLMs), and non-GenAI machine learning techniques.

    AMD’s chair and CEO Lisa Su heralded “more secure, efficient, and scalable networks,” made possible through the platform, which uses Cisco’s Agile Services Networking and Data Centre Networking, plus Nokia’s capabilities in RAN, Core, fixed broadband, and optical transport.

    India first, then global expansion

    The Open Telecom AI Platform’s first customer, Jio, describes a “replicable reference architecture and deployable solution for the broader global service provider industry.”

    The company hopes to position India as a front-runner in AI-driven telecom innovation. The timing of the project is significant, as telecom operators worldwide face increasing pressure to enhance network performance and offer new services beyond those of traditional telecom infrastructure.

    “The initiative goes beyond automation – it’s about enabling AI-driven, autonomous networks that adapt in real-time, enhance user experiences, and create new service and revenue opportunities across the digital ecosystem,” Oommen said.

    Real-world applications and benefits

    Industry analysts suggest the Telecom AI Platform could drive significant improvements in several key areas:

    1. Network security: Enhanced threat detection and prevention through AI-driven analysis across network layers
    2. Operational efficiency: Reduced total cost of ownership through automation and predictive maintenance
    3. Self-healing networks: Autonomous identification and resolution of network issues before they impact service
    4. Revenue generation: Creation of new AI-enabled services and applications for enterprise and consumer segments

    Potential timeline and global impact

    While specific deployment timelines weren’t disclosed in the announcement, the companies indicated that development is actively underway. The platform’s open architecture design suggests its impact could extend far beyond Jio’s network in India.

    The Telecom AI Platform represents a significant step toward what industry experts call “cognitive networks” – telecommunications infrastructure with embedded intelligence that can learn, adapt, and evolve autonomously. For global telecom operators watching this development, the platform could provide a blueprint for integration that addresses their most pressing challenges: reducing operational costs, enhancing security posture, improving customer experience, and developing new revenue streams.

    As telecom networks continue their evolution toward 6G and beyond, initiatives like this Telecom AI Platform may well determine which operators thrive in the future – and which countries will lead the next wave of telecommunications innovation.

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    DeepSeek’s new technology makes AI actually understand what you’re asking for https://techwireasia.com/2025/04/deepseeks-new-technology-makes-ai-actually-understand-what-youre-asking-for/ Wed, 09 Apr 2025 08:26:44 +0000 https://techwireasia.com/?p=241688 DeepSeek’s AI feedback systems help make AI understand what humans want. Method allows smaller AI models to perform as well as larger cousins. Potential to reduce cost of training. Chinese AI company DeepSeek has developed a new approach to AI feedback systems that could transform how artificial intelligence learns from human preferences. Working with Tsinghua […]

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  • DeepSeek’s AI feedback systems help make AI understand what humans want.
  • Method allows smaller AI models to perform as well as larger cousins.
  • Potential to reduce cost of training.
  • Chinese AI company DeepSeek has developed a new approach to AI feedback systems that could transform how artificial intelligence learns from human preferences.

    Working with Tsinghua University researchers, DeepSeek’s innovation tackles one of the most persistent challenges in AI development: teaching machines to understand what humans genuinely want from them. The breakthrough is detailed in a research paper “Inference-Time Scaling for Generalist Reward Modeling,” and introduces a technique making AI responses more accurate and efficient – a win-win in the AI world where better performance typically demands more computing power.

    Teaching AI to understand human preferences

    At the heart of DeepSeek’s innovation is a new approach to what experts call “reward models” – essentially the feedback mechanisms that guide how AI systems learn. Think of reward models as digital teachers. When an AI responds, models provide feedback on how good that response was, helping the AI improve over time. The problem has always been how to create reward models that accurately reflect human preferences across many different types of questions. DeepSeek’s solution combines two techniques:

    1. Generative Reward Modeling (GRM): Uses language to represent rewards, providing richer feedback than previous methods that relied on simple numerical scores.
    2. Self-Principled Critique Tuning (SPCT): Allows the AI to adaptively generate its guiding principles and critiques through online reinforcement learning.

    Zijun Liu, a researcher from Tsinghua University and DeepSeek-AI who co-authored the paper, explains that this combination allows “principles to be generated based on the input query and responses, adaptively aligning reward generation process.”

    Doing more with less

    What makes DeepSeek’s approach particularly valuable is “inference-time scaling.” Rather than requiring more computing power during the training phase, the method allows for performance improvements when the AI is used – the ‘point of inference’.

    The researchers demonstrated that their method achieves better results with increased sampling during inference, potentially allowing smaller models to match the performance of much larger ones. The efficiency breakthrough comes at a important moment in AI development when the relentless push for larger models raises concerns about sustainability, supply chain viability, and accessibility.

    What this means for the future of AI

    DeepSeek’s innovation in AI feedback systems could have far-reaching implications:

    • More accurate AI responses: Better reward models mean AI systems receive more precise feedback, improving outputs over time.
    • Adaptable performance: The ability to scale performance during inference allows AI systems to adjust to different computational constraints.
    • Broader capabilities: AI systems can perform better across many tasks by improving reward modelling for general domains.
    • Democratising AI development: If smaller models can achieve similar results to larger models via better inference methods, AI research could become more accessible to those with limited resources.

    DeepSeek’s rising influence

    The latest advance adds to DeepSeek’s growing reputation in the AI field. Although founded only in 2023 by entrepreneur Liang Wenfeng, the Hangzhou-based company has made an impact with the V3 foundation model and R1 reasoning model. The company recently upgraded its V3 model (DeepSeek-V3-0324), which it said offered “enhanced reasoning capabilities, optimised front-end web development and upgraded Chinese writing proficiency.”

    DeepSeek has also committed to open-source its AI technology, by opening five public code repositories in February which allow developers to review and contribute to software development.

    According to the research paper, DeepSeek intends to make its GRM models open-source, although no specific timeline has been provided. Its decision could accelerate progress in the field by allowing broader experimentation with this type of advanced AI feedback system.

    Beyond bigger is better

    As AI continues to evolve rapidly, DeepSeek’s work demonstrates that innovations in how models learn can be just as important as increasing their size. By focusing on the quality and scalability of feedback, DeepSeek addresses one of the challenges to create AI that better understands and aligns with human preferences.

    This possible breakthrough in AI feedback systems suggests the future of artificial intelligence may depend not just on raw computing power but on more intelligent and efficient methods that better capture the nuances of human preferences.

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    US panic-buying as Trump’s tech tariffs hit 100%+ https://techwireasia.com/2025/04/us-panic-buying-as-trumps-tech-tariffs-hit-100/ Tue, 08 Apr 2025 10:32:16 +0000 https://techwireasia.com/?p=241680 Trump’s tech tariff threats reach unprecedented levels. Potential 100%+ duties on China, placing digital supply chain at risk. Asian electronics manufacturers and US tech giants face market disruption. “We’re all living inside the president’s head, and nobody knows anything,” wrote The Atlantic recently – an encapsulation of the market turmoil surrounding Trump’s tech tariffs. The […]

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  • Trump’s tech tariff threats reach unprecedented levels.
  • Potential 100%+ duties on China, placing digital supply chain at risk.
  • Asian electronics manufacturers and US tech giants face market disruption.
  • “We’re all living inside the president’s head, and nobody knows anything,” wrote The Atlantic recently – an encapsulation of the market turmoil surrounding Trump’s tech tariffs.

    The tariff policy has intensified rapidly, marking an escalation from the president’s previous trade approach. The latest threat to impose an additional 50% duty on Chinese imports unless Beijing withdraws its retaliatory measures would push the total tariff rate to 104%, more than quadrupling the cost of importing Chinese goods into the US.

    Beijing’s 34% retaliatory tariffs, imposed in direct response to Trump’s initial tariff announcements, represent China’s own calculated approach – not seeking to match the complete US duties but sending a message that it won’t absorb economic punishment without a proportional response.

    China’s Commerce Ministry stated, they “firmly oppose” the US threats and will “resolutely respond,” calling Trump’s approach “doubling down on its mistakes” and “exposing its nature of coercion.”

    The severity of this action goes far beyond the 25% peak rates seen during Trump’s first administration, when economists warned of significant market disruption. Now, global technology supply chains that took decades to optimise face the prospect of a complete restructuring, as duties exceeding 100% would effectively close off the world’s largest consumer market to Chinese manufacturers.

    This represents a continuation of Trump’s first-term policies and an amplification that creates immediate consequences for technology companies and consumers. “If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump declared on his Truth Social platform this week.

    Immediate market response to Trump’s tech tariffs

    The escalating tariffs have created an unexpected short-term boom for companies like Apple, with consumers flooding stores to purchase electronics before potential price increases. “Almost every customer asked me if prices were going to go up soon,” reported one Apple store employee, who requested anonymity as they weren’t authorised to speak publicly.

    Bloomberg reports that Apple’s US retail locations experienced higher sales this past weekend than in previous years. The sudden purchasing surges illustrate the real-world impact of tariff policies on consumer behaviour, with the prospect of iPhones potentially costing thousands of dollars creating what one employee described as an atmosphere resembling “the busy holiday season.”

    The mathematical absurdity of “reciprocal” tariffs

    What makes Trump’s approach particularly problematic is the disconnect between his “reciprocal tariff” rhetoric and the calculation method employed. Documents from the office of the US Trade Representative reveal that the tariff levels do not match other countries’ rates; instead, they are based on bilateral trade deficits. The formula mathematically ensures that any nation selling more to America than it buys faces punitive duties, regardless of their actual trade practices.

    The reductive approach treats complex global trade relationships as a simplistic zero-sum game, ignoring the reality of how modern supply chains function.

    Tech industry fallout

    Few sectors stand to lose more from the escalation in trading relations than technology. The industry’s heavy reliance on transnational production networks means that components often cross borders multiple times before reaching consumers. Each crossing potentially incurs tariffs, creating a compound effect that industry analysts call a “tariff cascade.”

    Apple exemplifies companies subject to this effect. While it has worked to diversify its manufacturing base since Trump’s first term, shifting some production to Vietnam, India, and other locations, China remains central to its supply chain. The company’s stock suffered its worst three-day rout since 2001 following Trump’s tariff announcements. Bloombergreported that Apple “lost more than half a trillion dollars in valuation” in just two trading days.

    Beyond rhetoric: the real-world impact

    Despite the president’s claims that tariffs will revitalise American manufacturing, economic forecasts paint a different picture. Fitch Ratings warned that the tariffs have “significantly raised the risk for a recession in the United States” through higher consumer prices, squeezed wages, and dampened business investment.

    Larry Fink, CEO of BlackRock, said “most CEOs I’ve talked to would say we are probably in a recession right now.”

    For tech consumers, the Yale Budget Lab estimates American households could face an additional $2,100 in annual costs due to the April 2nd tariff announcement alone. Lower-income households will bear a disproportionate burden of these increases, as they spend a higher percentage of their income on consumer electronics and other goods affected by the tariffs.

    Strategic incoherence

    Perhaps most concerning for the technology sector is the lack of coherent objective.

    As Navin Girishankar, head of the economic security programme at the Centre for Strategic and International Studies, told the South China Morning Post, “The Trump administration has been transparent all along about its desire to use tariffs primarily as an instrument of choice for several different objectives,” but “less coherent, I would say incoherent, about the actual goals.”

    The strategic ambiguity leaves tech companies in a precarious position, unable to make informed long-term investment decisions. Should they accelerate reshoring efforts, potentially at great expense, or hope for a negotiated resolution?

    Cracks in support

    Even some of Donald Trump’s most staunch supporters have begun to express concern. Elon Musk, who serves as a senior adviser to Trump, has expressed discomfort with the policy. Meanwhile, billionaire investor Bill Ackman stated bluntly, “I am just frustrated watching what I believe to be a major policy error occur.”

    The coming days will determine whether Trump follows through on his threat to escalate duties to their new levels. What’s already clear is that his approach to trade represents a wrecking of the integrated global technology ecosystem that has fuelled innovation worldwide.

    For tech companies and consumers across Asia, the message is unmistakable: the era of predictable trade in digital goods is over, at least for now. As markets reel and supply chains reconfigure, uncertainty is the only certainty.

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    Trump’s tariffs: A strategic gambit or economic self-harm? https://techwireasia.com/2025/04/trumps-tariffs-a-strategic-gambit-or-economic-self-harm/ Mon, 07 Apr 2025 13:24:36 +0000 https://techwireasia.com/?p=241670 Trump’s reciprocal tariffs rely on formula that ignores trade realities. Threatens Asian supply chains Region face tariffs as high as 60%, in “strategic containment via tariff warfare.” When President Donald Trump stepped to the podium last Wednesday brandishing colourful charts listing countries and their supposed trade barriers, the world watched with collective anxiety. “If you […]

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  • Trump’s reciprocal tariffs rely on formula that ignores trade realities.
  • Threatens Asian supply chains
  • Region face tariffs as high as 60%, in “strategic containment via tariff warfare.”
  • When President Donald Trump stepped to the podium last Wednesday brandishing colourful charts listing countries and their supposed trade barriers, the world watched with collective anxiety. “If you look at that… China, first row, 67%. That’s tariffs charged to the USA,” Trump declared, waving his visual aid.

    However, as markets tumbled and governments scrambled to respond, a striking revelation emerged: Trump’s reciprocal tariffs didn’t match actual foreign tariff rates. Instead, buried in documents published by the US Trade Representative’s office (USTR) was an entirely different calculation – a simple mathematical formula focused primarily on bilateral trade deficits.

    For all the rhetoric about fairness and reciprocity, the administration had quietly reduced complex global trade relationships to a single ratio: If a country sells more to America than it buys, it’s “cheating” and must be punished accordingly. The approach assumes persistent trade deficits automatically indicate unfair practices by trading partners, a view that has caused economists to object.

    The formula uses price elasticity of import demand, tariff pass-through rates, and a country’s export-import balance with the US, and ensures mathematically that any nation selling more to America than it buys faces punitive tariffs. It’s a simplistic solution to what trade experts recognise as a complex, multi-faceted issue.

    “This isn’t tit-for-tat – it’s strategic containment via tariff warfare,” noted Stephen Innes from SPI Asset Management, describing what he calls “a full-frontal assault on Beijing’s extended supply chain.”

    Asia in the cross-hairs: “Slamming the door shut”

    The consequences are particularly severe for Asia. China faces a 34% reciprocal tariff, compared to the 20% tariffs that Trump created. Meanwhile, Southeast Asian nations that benefited from supply chain relocation during Trump’s first term now face what Professor Pushan Dutt of INSEAD business school described as having their door “slammed shut,” with Vietnam facing 46% tariffs, Cambodia 49%, and Laos 48%, according to BBC reporting.

    The approach represents a stunning reversal in American economic policy. As Malaysian Prime Minister Anwar Ibrahim observed, “It is quite unusual, as the country that previously supported the spirit of free trade and established the World Trade Organisation and the General Agreement on Tariffs and Trade […] is now taking a different approach.”

    The USTR document outlines the administration’s underlying assumptions: “If trade deficits are persistent because of tariff and non-tariff policies and fundamentals, then the tariff rate consistent with offsetting these policies and fundamentals is reciprocal and fair.” Yet this position contradicts economic understanding that trade deficits reflect broader macroeconomic factors, including savings rates, investment flows, and economic structures.

    The White House claims the tariffs will force manufacturing back to American shores. “If you want your tariff rate to be zero,” Trump declared, “then you build your product right here in America.” However, economic forecasts suggest a different outcome. Fitch Ratings warns that the tariffs have “significantly raised the risk for a recession in the United States” through higher consumer prices, squeezed wages, and dampened business investment.

    Strategic responses: Retaliation or regional integration?

    For Asian economies, the impact could be devastating. The targeting of Cambodia, Vietnam, and Laos – among the region’s poorest countries – threatens to undermine their development models.

    Those nations are heavily dependent on exports and Chinese investment in supply chain infrastructure, and now face prohibitive barriers to their largest market. China’s Commerce Ministry immediately called the move “a typical act of unilateral bullying” and pledged “resolute countermeasures.” The country’s response signals a likely escalation rather than capitulation.

    As former US trade negotiator Stephen Olson told the BBC, “China and the Chinese will have to retaliate. They will not be able to sit back and watch this.”

    The strategy may also backfire by accelerating Asian economic integration. China, South Korea, and Japan recently held their first trilateral economic talks in five years, with new momentum to finalise a free trade agreement proposed over a decade ago. Meanwhile, Malaysian Prime Minister Anwar Ibrahim has called for ASEAN to present a unified stance with its combined market of 640 million people.

    Inevitably, American businesses operating in Asia will face significant uncertainty. Major companies like Apple, Intel, and Nike maintain substantial manufacturing operations in Vietnam, and a recent survey by the American Chamber of Commerce found that most US manufacturers expect to lay off staff if tariffs are imposed.

    While the US administration has framed the tariffs as a negotiating tactic that could be rolled back if countries eliminate their “unfair trade practices” or reduce their trade surpluses with the US, the actual mechanism for such adjustments remains unclear. Commerce Secretary Howard Lutnick’s comment that other countries must do some “deep soul-searching on how they treat us poorly” suggests little appetite for compromise.

    Trump’s drastic economic realignment demands an equally strong response from businesses and policymakers in Asia. Whether through regional integration, economic diversification, or direct negotiations, Asian economies must now navigate what Malaysian Prime Minister Anwar aptly called “post-normal times, when political and economic policies are implemented unexpectedly.”

    Will Trump’s reciprocal tariffs achieve their stated aim of re-balancing global trade, or will they fragment the global economy into competing blocs? With policy volatility becoming the new normal in international trade, businesses and governments across Asia must adapt to a reality where today’s tariff walls could be tomorrow’s negotiating chips. As markets reel and supply chains reconfigure, the coming months will determine whether this represents a temporary disruption or a fundamental realignment of global commerce.

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    TikTok deadline looms: Will ByteDance survive in the US? https://techwireasia.com/2025/03/tiktok-deadline-looms-will-bytedance-survive-in-the-us/ Thu, 27 Mar 2025 10:53:47 +0000 https://techwireasia.com/?p=241604 The TikTok April 5 ban deadline approaches. Multiple paths for ByteDance to retain control emerge, Oracle as key player. Trump administration signals flexibility on deadline extension as deals take shape. As the April 5 TikTok ban deadline approaches, ByteDance is attempting to secure a deal that would allow the popular video-sharing platform to continue operating […]

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  • The TikTok April 5 ban deadline approaches.
  • Multiple paths for ByteDance to retain control emerge, Oracle as key player.
  • Trump administration signals flexibility on deadline extension as deals take shape.
  • As the April 5 TikTok ban deadline approaches, ByteDance is attempting to secure a deal that would allow the popular video-sharing platform to continue operating in the United States.

    The Chinese tech giant faces a federal mandate to divest TikTok’s US operations or see the app banned entirely, following years of national security-focused statements about potential data privacy risks and Chinese government influence. The showdown over TikTok’s future represents the culmination of a years-long saga that began during Trump’s first term and has accelerated since his return to office.

    President Trump provided ByteDance with a 75-day reprieve in January, postponing enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act, which Congress passed with bipartisan support in April 2024. “We have much interest in TikTok,” Trump told reporters in early March. “Hopefully, China will approve of the deal.”

    The shift in stance marks a change from a more combative approach during his first administration, suggesting a potential pathway for TikTok’s survival through restructuring rather than a complete sale.

    Oracle emerges as a key player

    A central figure in discussions about TikTok’s future is cloud computing company Oracle, founded by Larry Ellison. The company already serves as TikTok’s primary cloud provider, hosting US user data since 2022 as part of the platform’s “Project Texas” initiative. Project Texas aimed to address US regulatory concerns by storing Americans’ data domestically.

    According to recent reports from The Information and Bloomberg, Oracle is a leading contender to help to rescue TikTok from its current predicament. One proposed deal structure, reportedly being considered by the White House, would assign Oracle the task of safeguarding Americans’ data on TikTok in exchange for a stake in the company while leaving the app’s proprietary algorithm in ByteDance’s hands.
    TikTok CEO Shou Zi Chew has objected repeatedly to relinquishing control of the app’s algorithm, which powers its highly-effective content recommendation system and is the platform’s core competitive advantage.

    Other multiple pathways forward

    Several potential solutions have emerged in recent weeks:

    1. Non-Chinese investor takeover: Reuters reported that major non-Chinese ByteDance investors, including Jeff Yass’s Susquehanna International Group and Bill Ford’s General Atlantic, may increase their existing stakes and acquire TikTok’s US operations as part of a new entity, with Oracle protecting US user data. The arrangement would reduce Chinese ownership below the important 20% threshold needed to avoid the US ban.
    2. Potential new buyers: President Trump mentioned that four groups were negotiating to buy the platform. Names previously floated include Microsoft, AI startup Perplexity, a coalition of billionaire investors, and the US government.
    3. Individual entrepreneur bids: Several high-profile figures have expressed interest in acquiring TikTok, including billionaire Frank McCourt, who is partnering with Reddit co-founder Alexis Ohanian, investor Kevin O’Leary, and popular content creator MrBeast (Jimmy Donaldson).

    Vice President JD Vance recently expressed optimism about reaching a resolution, telling reporters, “There will almost certainly be a high-level agreement that satisfies our national security concerns and allows for a distinct American TikTok enterprise.”

    Executive departures signal uncertainty

    The recent departure of key executives adds to the complexity of TikTok’s predicament. On March 24, Blake Chandlee, TikTok’s global business solutions head who oversaw advertising sales and marketing, announced his resignation effective April 1.

    In an internal memo, Chandlee wrote that he would be “scaling back my day-to-day role to an advisory one.” This follows exits by other senior leaders, including North America head of ad sales Sameer Singh, and US general manager of agency business Jack Bamberger, suggesting potential internal disruption as the deadline approaches.

    Political pressure mounting

    The pressure on TikTok comes from multiple directions. Three Democratic senators – Ed Markey, Chris Van Hollen, and Cory Booker – wrote to President Trump on Monday urging him to seek congressional authority to extend the deadline to October, writing, “the path to saving TikTok should run through Capitol Hill.”

    Meanwhile, TikTok has ramped up its public relations efforts with an intensive advertising campaign portraying itself as a force for good. According to estimates from AdImpact, the company increased ad spending from $5 million to over $7 million in February and March compared to the same period last year.

    What happens if the TikTok ban deadline passes?

    If ByteDance fails to secure a deal by April 5, several enforcement scenarios could unfold:

    • Google and Apple might be required to remove TikTok from their app stores,
    • Internet service providers could be directed to block access to TikTok’s servers,
    • Further legal challenges from TikTok and users could follow.

    Despite the fast-approaching deadline, TikTok is operating as usual, planning appearances at industry events beyond the April deadline, including the Cannes Lions advertising festival in June and the Interactive Advertising Bureau’s NewFronts in May. As the clock ticks down to April 5, the eventual fate of TikTok – with 170 million American users – remains unclear. The outcome will determine the future of a wildly-popular social media platform and set precedents for how the US government handles perceived national security threats from foreign-owned companies.

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    BYD dominates Tesla: How Chinese EV giant is winning the global EV race https://techwireasia.com/2025/03/byd-dominates-tesla-how-chinese-ev-giant-is-winning-the-global-ev-race/ Tue, 25 Mar 2025 10:59:27 +0000 https://techwireasia.com/?p=241591 BYD beats Tesla with $107 billion revenue and aggressive price on-priced Model 3 competitor. Chinese EV maker overtakes as political backlash and price competition drive Tesla’s sales down. Tesla’s once unassailable position in the electric vehicle (EV) market continues to erode in 2025 as Chinese automaker BYD dominates the global EV landscape with its recipe […]

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  • BYD beats Tesla with $107 billion revenue and aggressive price on-priced Model 3 competitor.
  • Chinese EV maker overtakes as political backlash and price competition drive Tesla’s sales down.
  • Tesla’s once unassailable position in the electric vehicle (EV) market continues to erode in 2025 as Chinese automaker BYD dominates the global EV landscape with its recipe of innovation and aggressive pricing.

    The US electric vehicle pioneer, led by Elon Musk, now struggles against BYD’s global expansion and technological advances that are reshaping consumer expectations worldwide. The power shift has fundamentally altered the competitive dynamics of the global EV industry, with profound implications for automakers across all markets.

    Revenue milestone

    According to a stock filing published Monday at the Shenzhen stock exchange, BYD’s 2024 revenue reached 777.1 billion yuan ($107.2 billion), ahead of Tesla’s $97.7 billion. The crossover in leadership position marks the first time the Chinese automaker has surpassed its American rival in revenue.

    “BYD’s revenue results represent a 29% increase from the previous year and outperformed a Bloomberg forecast of 766 billion yuan,” reported AFP. BYD’s net profit reached 40.3 billion yuan, up 34% from 2023, and it recorded a record quarterly profit of 15 billion yuan in Q4 2024. The timing is significant, coinciding with Tesla’s declining sales trajectory in most major markets and BYD’s aggressive expansion into international territories previously dominated by Western manufacturers.

    The “Model 3 killer” strategy

    Perhaps most threatening to Tesla’s position is BYD’s direct assault on its bestselling Model 3. On Sunday, BYD launched the Qin L, priced at just 119,800 yuan ($16,517), positioning it as what the South China Morning Post describes as a “Model 3 killer.”

    For comparison, the basic edition of Tesla’s Model 3 in China is priced at 235,500 yuan – more than double. Despite the price difference, the Qin L offers competitive specifications with a driving range of 545km to Model 3’s 634km. Both cars feature preliminary self-driving software and digital cockpits, demonstrating BYD’s ability to at least match Tesla’s technology at a significantly lower price point.

    “BYD has already impressed most Chinese drivers as a maker of reliable electric cars, and its new products that are affordable to middle- and low-income consumers will lure some Tesla fans away from its Model 3 and Model Y,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “As it enjoys a pricing advantage, Qin L will easily generate thousands of deliveries a month.”

    Meanwhile, Guangzhou-based Xpeng is challenging Tesla and BYD with its Mona M03, priced the same as the Qin L at 119,800 yuan. The company shipped more than 15,000 units of the Mona M03 in February.

    Global sales disparity: How BYD dominates Tesla

    The contrast in sales performance is stark. BYD reported selling 322,846 cars in February 2025, up 164% on last year. According to AFP, its monthly sales jumped 161% in February to 318,000 units. Meanwhile, Tesla’s shipments from China dropped 49% in February, with the automaker shipping 30,688 vehicles – the lowest monthly figure since July 2022.

    On a broader level, Tesla’s market share in China has dropped from more than 16% of the market in 2022 to 4.3% in February 2025.

    Tesla’s global decline

    Tesla’s challenges extend beyond China. According to TIME, the company’s stock dropped 15% on Monday, its steepest decline in five years. European sales have been particularly hard hit, with Tesla selling just 7,517 vehicles in Europe in January, half of what it sold in January the previous year, despite overall rising EV sales in the region.

    In Germany, Tesla sales were down more than 70% compared to last year, with less than 1,500 new Teslas registered in February. Similar patterns emerged across Europe, with sales falling 50% in Portugal, 45% in France, 42% in Sweden, and 48% in Norway between January and February 2025. The UK is the only country where the brand remains in increased demand.

    Australia has also seen Tesla sales drop over 70% compared to last year, with just 1,592 sales in February compared to 5,665 in February 2024, according to The Guardian. Even in California, Tesla’s home market and the largest domestic market for EVs in the US, sales have slumped for five consecutive quarters.

    Technology race

    BYD isn’t winning on price alone. The company is pushing technological innovation, recently unveiling its “Super e-Platform” battery and charging system. The system boasts peak speeds of 1,000 kilowatts – double the 500 kilowatts currently offered by Tesla’s Superchargers. The system allows cars to travel up to 470 kilometres after just a five-minute charge.

    Last month BYD announced that at least 21 of its models, including the Seagull hatchback that starts at just 69,800 yuan, would be fitted with its advanced driver assistance system at no additional cost. The system allows cars to navigate and drive semi-autonomously on roads and park itself.

    Tesla’s response

    To counter its sales decline in China, Tesla is currently designing a cheaper version of its bestselling Model Y. According to the South China Morning Post, the new edition will be 20% cheaper than the existing variants available in China, which range in price from 263,500 yuan to 303,500 yuan. The US firm plans to start making the car at its Shanghai factory next year.

    As reported by Reuters, Tesla has also sent engineers to work with Baidu to integrate Chinese map data with Tesla’s driver-assistance systems, helping vehicles better recognise mainland China’s lane markings and traffic signals. When asked about managing his various businesses amid these challenges, Musk told Fox Business’s Larry Kudlow that he was doing so “with great difficulty.”

    Market valuation gap

    Despite BYD’s revenue gains, Tesla maintains a significant lead in market valuation. Fortune reports that, “Tesla is worth about $800 billion despite a share-price rout that’s seen the stock plunge 38% this year. BYD has a market capitalisation closer to $157 billion.”

    Tesla also continues to lead in profitability ratio, with a 2024 net income of $7.6 billion compared to BYD’s approximately $5.6 billion (40.3 billion yuan). This suggests that while BYD dominates sales volume and revenue, Tesla maintains higher profit margins per vehicle.

    Outlook

    Wang Chuanfu, BYD’s chairman and founder, stated that Chinese auto brands in the era of intelligence-led vehicles were no longer merely followers but at the forefront of the trend. “They’re ‘daring’ to be first in the world and are collaborating with other domestic brands to go global and move up the value chain,” he said, according to Fortune.

    The company that once dominated the EV landscape faces questions about its positioning and strategy. With production shortages affecting its upgraded Model Y deliveries in Shanghai and competitors offering comparable technology at half the price, Tesla’s first-mover advantage has largely evaporated. The global EV race has entered a new phase, and BYD dominates Tesla in ways few would have predicted just a few years ago.

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    Nvidia introduces new AI chips at GTC and joins AI infrastructure partnership https://techwireasia.com/2025/03/nvidia-introduces-new-ai-chips-at-gtc-and-joins-ai-infrastructure-partnership/ Thu, 20 Mar 2025 09:46:02 +0000 https://techwireasia.com/?p=241572 Nvidia introduces new AI chips: Blackwell Ultra and Vera Rubin. Joins AI Infrastructure Partnership with BlackRock, Microsoft, and xAI. Nvidia revealed new AI chips at its annual GTC conference on Tuesday. CEO Jensen Huang introduced two key products: the Blackwell Ultra chip family, which is expected to ship in the second half of this year, […]

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  • Nvidia introduces new AI chips: Blackwell Ultra and Vera Rubin.
  • Joins AI Infrastructure Partnership with BlackRock, Microsoft, and xAI.
  • Nvidia revealed new AI chips at its annual GTC conference on Tuesday. CEO Jensen Huang introduced two key products: the Blackwell Ultra chip family, which is expected to ship in the second half of this year, and Vera Rubin, a next-generation GPU set to launch in 2026.

    The release of OpenAI’s ChatGPT in late 2022 has significantly boosted Nvidia’s business, with sales increasing more than sixfold. Nvidia’s GPUs play an important role in the training of advanced AI models, giving the company a market advantage. Cloud providers like Microsoft, Google, and Amazon will be evaluating the new chips to see if they provide enough performance and efficiency gains to justify further investment in Nvidia technology. “The computational requirement, the scaling law of AI, is more resilient, and in fact, is hyper-accelerated,” Huang said.

    The new releases reflect Nvidia’s shift to an annual release cycle for chip families, moving away from its previous two-year pattern.

    Nvidia expands role in AI infrastructure partnership

    Nvidia’s announcements come as the company deepens its involvement in the AI Infrastructure Partnership (AIP), a collaborative effort to build next-generation AI data centres and energy solutions. On Wednesday, BlackRock and its subsidiary Global Infrastructure Partners (GIP), along with Microsoft and MGX, announced updates to the partnership. Nvidia and Elon Musk’s AI company, xAI, have joined the initiative, strengthening its position in AI infrastructure development.

    Nvidia will serve as a technical advisor to the AIP, contributing its expertise in AI computing and hardware. The partnership aims to improve AI capabilities and focus on energy-efficient data centre solutions.

    Since its launch in September 2024, AIP has attracted strong interest from investors and corporations. The initiative’s initial goal is to unlock $30 billion in capital, with a target to generate up to $100 billion in total investment potential through a mix of direct investment and debt financing.

    Early projects will focus on AI data centres in the United States and other OECD countries. GE Vernova and NextEra Energy are recent members of the partnership, bringing experience in energy infrastructure. GE Vernova will assist with supply chain planning and energy solutions to support AI data centre growth.

    Vera Rubin chip family

    Nvidia’s next-generation GPU system, Vera Rubin, is scheduled to ship in the second half of 2026, consisting of two main components: a custom CPU, Vera, and a new GPU called Rubin, named after astronomer Vera Rubin. Vera marks Nvidia’s first custom CPU design, built on an in-house core named Olympus. Previously, Nvidia used off-the-shelf Arm-based designs. The company claims Vera will deliver twice the performance of the Grace Blackwell CPU introduced last year.

    Rubin will support up to 288 GB of high-speed memory and deliver 50 petaflops of performance for AI inference – more than double the 20 petaflops handled by Blackwell chips. It will feature two GPUs working together as a single unit. Nvidia plans to follow up with a “Rubin Next” chip in 2027, combining four dies into a single chip to double Rubin’s processing speed.

    Blackwell Ultra chips

    Nvidia also introduced new versions of its Blackwell chips under the name Blackwell Ultra, created to increase token processing, allowing AI models to process data faster. Nvidia expects cloud providers to benefit from Blackwell Ultra’s improved performance, claiming that the chips could generate up to 50 times more revenue than the Hopper generation, which was introduced in 2023.

    Blackwell Ultra will be available in multiple configurations, including a version paired with an Nvidia Arm CPU (GB300), a standalone GPU version (B300), and a rack-based version with 72 Blackwell chips. Nvidia said the top four cloud companies have already deployed three times as many Blackwell chips as Hopper chips. Nvidia also referred to its history of increasing AI computing power with each generation, from Hopper in 2022 to Blackwell in 2024 and the anticipated Rubin in 2026.

    DeepSeek and AI reasoning

    Nvidia addressed investor concerns about China’s DeepSeek R1 model, which launched in January and reportedly required less processing power than comparable US-based models. Huang framed DeepSeek’s model as a positive development, noting that its ability to perform “reasoning” requires more computational power. Nvidia said its Blackwell Ultra chips are designed to handle reasoning models more effectively, improving inference performance and responsiveness.

    Broader AI strategy

    The GTC conference in San Jose, California, drew about 25,000 attendees and featured presentations from hundreds of companies that use Nvidia hardware for AI development. General Motors, for example, announced plans to use Nvidia’s platform for its next-generation vehicles.

    Nvidia also introduced new AI-focused laptops and desktops, including the DGX Spark and DGX Station, designed to run large models like Llama and DeepSeek. The company also announced updates to its networking hardware, which ties GPUs together to function as a unified system, and introduced a software package called Dynamo to optimise chip performance.

    Nvidia plans to continue naming its chip families after scientists. The architecture following Rubin will be named after physicist Richard Feynman and is scheduled for release in 2028.

    Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

    Explore other upcoming enterprise technology events and webinars powered by TechForge here.

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    Tesla sales plummet worldwide as competition and political backlash intensify https://techwireasia.com/2025/03/tesla-sales-plummet-worldwide-as-competition-and-political-backlash-intensify/ Wed, 19 Mar 2025 12:33:23 +0000 https://techwireasia.com/?p=241561 Tesla sales decline globally amid Elon Musk’s politics and competition from local rivals. Electric vehicle pioneer sees market share erosion in Europe, China, and Australia. Tesla is designing a cheaper Model Y and enhancing its autonomous-driving capabilities in China as it scrambles to reverse a worldwide sales slide. The Tesla sales decline has become a […]

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  • Tesla sales decline globally amid Elon Musk’s politics and competition from local rivals.
  • Electric vehicle pioneer sees market share erosion in Europe, China, and Australia.
  • Tesla is designing a cheaper Model Y and enhancing its autonomous-driving capabilities in China as it scrambles to reverse a worldwide sales slide.

    The Tesla sales decline has become a challenge for the electric vehicle maker. To combat plummeting market share, the new Model Y variant is planned to be 20% cheaper than existing models.

    Once the undisputed leader in the global EV market, Tesla is grappling with consumer backlash against CEO Elon Musk’s political association with the Trump administration and increasingly fierce competition from local rivals in key markets. According to the South China Morning Post, the company’s market share in China has dropped dramatically from more than 16% in 2022 to just 4.3% in February 2025.

    Stock market response

    The impact has been felt on Wall Street, where Tesla’s stock dropped 15% on Monday, marking its steepest decline in five years. According to TIME, the drop came alongside a stock market plunge following President Donald Trump’s hint at a recession. The president acknowledged Tesla’s struggles in a post on Truth Social, where he blamed “radical left lunatics” for boycotting Musk’s EV company and pledged to “buy a brand new Tesla” himself.

    European market struggles

    The decline in Tesla sales is particularly pronounced in Europe. According to the European Automobile Manufacturers’ Association (ACEA), Tesla sold just under 7,517 vehicles in Europe in January, half of January 2024 sales. The decline comes despite the rise of overall battery and hybrid electric vehicle sales as the European Union (EU) continues to tighten regulations on emissions from new vehicles.

    In February, electric vehicle sales in Germany, the largest market for EVs in the EU, rose 30% year over year, yet Tesla sales were down more than 70% compared to last year. TIME reports that less than 1,500 new Teslas were registered in Germany in February.

    Other European countries have also witnessed Tesla’s market share erode. Between January and February of 2025, Tesla recorded a 50% drop in sales in Portugal and 45% in France, according to Reuters, while sales fell 42% in Sweden and by 48% in Norway.

    Australian and Chinese markets

    The Tesla sales decline includes Australia, where data from the Electric Vehicle Council shows that Tesla sales dropped over 70% compared to last year, with just 1,592 sales in February compared to 5,665 in February 2024, as reported by The Guardian.

    In China, Tesla is facing particular challenges. Tesla sales in China dropped 49% in February, with the automaker shipping 30,688 vehicles – the lowest monthly figure since July 2022, according to Bloomberg. Tesla’s market share in the country has plummeted from more than 16% in 2022 to just 4.3% in February 2025, as reported by the South China Morning Post.

    Chinese automaker BYD has emerged as a formidable competitor, selling more than 318,000 electric and hybrid cars last month – a 161% increase from last year. In December, sales of Tesla’s Model 3 fell behind those of the SU7, developed by smartphone vendor Xiaomi, by 25,815 to 21,046.

    US market challenges & the bright spots amid global decline

    Even in Tesla’s home market, the company is facing headwinds. In California – the biggest domestic market for EVs thanks to its state mandate that 35% of new 2026 car models sold must be zero-emissions – Tesla sales slumped for the fifth consecutive quarter, according to data from the California New Car Dealers Association (CNCDA).

    However, not every market has seen a similar decline. Britain saw a record number of EV sales in 2024, and Tesla sales were up 20% in February, bucking the global trend.

    Musk’s response to global challenges

    When Fox Business’s Larry Kudlow asked Musk how he was managing his various businesses amid these challenges, Musk candidly admitted he was doing so “with great difficulty.” Tesla has not officially released a statement addressing its falling sales, but its actions in various markets speak of the company’s recognition of the severity of the situation.

    Competition intensifies as price war unfolds

    Mainland China is Tesla’s second-largest market worldwide, trailing only the US, and the Shanghai factory is the carmaker’s most extensive production base. However, the company faces increasingly sophisticated competition from local manufacturers offering comparable or superior technology at significantly lower prices. An entry-level edition of Xpeng’s Mona M03, an EV fitted with preliminary autonomous-driving technology, costs 119,800 yuan, just half the price of the Model 3.

    The price disparity illustrates the fundamental challenge Tesla faces in markets like China, where domestic manufacturers have rapidly closed the technological gap while maintaining a substantial cost advantage. Chinese brands also employ aggressive pricing strategies that Tesla has struggled to match. According to China Passenger Car Association data, a record 227 models, including electric and petrol cars, had their prices cut in 2024, compared with 148 in 2023. The price war puts additional pressure on Tesla’s margins when the company is already contending with declining sales volumes.

    The road ahead: Critical challenges mount

    The decline in Tesla sales represents a pivotal moment for the company that once dominated the EV landscape. While Tesla is taking steps to address its challenges – particularly in China with its new lower-priced Model Y and enhanced autonomous capabilities – these moves may be too little, too late as competitors continue to gain momentum.

    Tesla’s production problems compound its market challenges. Even as the company unveiled an upgraded Model Y in China in late February, buyers in Shanghai are still waiting for deliveries due to production shortages, according to the South China Morning Post. These operational issues further erode consumer confidence at an important juncture. The reality facing Tesla is stark: its first-mover advantage has largely evaporated, and the company now finds itself in unfamiliar territory – playing defence rather than setting the agenda for the industry.

    With EV adoption accelerating globally and Tesla’s share of the growing market shrinking, the company faces existential questions about its positioning and strategy. For a company whose stratospheric valuation was predicated on market dominance and industry leadership, this period of retrenchment signals a fundamental recalibration of Tesla’s prospects.

    Whether Musk’s company can regain its footing in an increasingly crowded landscape remains today’s a pressing question in the electric vehicle industry.

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    Google set for largest-ever deal with $32 billion Wiz acquisition https://techwireasia.com/2025/03/google-set-for-largest-ever-deal-with-usd-32-billion-wiz-acquisition/ Wed, 19 Mar 2025 12:20:49 +0000 https://techwireasia.com/?p=241558 Google plans to acquire cybersecurity company Wiz. Deal is expected to strengthen Google’s cloud security capabilities. Google plans to acquire cybersecurity company Wiz for $32 billion in its largest-ever acquisition, strengthening the US giant’s position in the highly-competitive cloud computing market. If the deal is approved, Wiz will be integrated into Google Cloud, which generated […]

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  • Google plans to acquire cybersecurity company Wiz.
  • Deal is expected to strengthen Google’s cloud security capabilities.
  • Google plans to acquire cybersecurity company Wiz for $32 billion in its largest-ever acquisition, strengthening the US giant’s position in the highly-competitive cloud computing market. If the deal is approved, Wiz will be integrated into Google Cloud, which generated $43.2 billion in revenue last year, up 64% from 2022.

    The deal comes as Google faces antitrust inquiry in the United States, and lawsuits targeting its advertising practices and search engine dominance. Google’s acquisition of Wiz reflects a broader industry trend in which organisations seek to expand their cloud security capabilities in response to growing demand for data-intensive services.

    Google’s push into cybersecurity

    Google’s proposed acquisition of Wiz aims to strengthen its position in cloud, where it trails in third place behind Amazon and Microsoft.

    Wiz, founded in 2020, has quickly become a major player in cloud security, obtaining contracts with large organisations to monitor and manage cloud vulnerabilities.

    Wiz CEO Assaf Rappaport said the company shares Google’s goal of making cloud security more accessible and effective. “Wiz and Google Cloud are both fueled by the belief that cloud security needs to be easier, more accessible, more intelligent, and democratised, so more organisations can adopt and use cloud and AI securely,” they said in a blog post. Google CEO Sundar Pichai stated that the acquisition would let the company provide stronger security at a lower cost.

    Wedbush analysts have described the deal as a strategic move to compete with Microsoft and Amazon, which have already invested heavily in cybersecurity. Google’s acquisition of Mandiant for $5.4 billion in 2022 helped boost its cloud division’s operating profit to $6.1 billion last year, and Wiz is expected to expand its portfolio of offerings.

    High price and market impact

    The $32 billion price tag exceeds Google’s previous largest deal – a $12.5 billion acquisition of Motorola Mobility in 2012. According to Mergermarket, the Wiz deal ranks among the 20 most expensive software company acquisitions to date. Investors have responded cautiously, with Alphabet’s shares dropping 2% following the announcement.

    Google has been in discussions with Wiz for several months, reportedly increasing its offer from a previous $23 billion bid that was rejected in July. Wiz initially planned to pursue an IPO but decided against it owing to market volatility.

    Industry-wide impact and antitrust concerns

    The acquisition comes as the cybersecurity market continues to grow. Mark Smith, a director at Houlihan Lokey’s Technology Group, said the global cybersecurity market exceeds $50 billion, growing over 10% annually. Cloud security, in particular, is expanding even faster due to increasing threats and regulatory demands. “Strategic acquirers are competing to secure emerging technologies, driving up valuations,” he said. He highlighted AI’s role in shaping security measures and creating more resilient defences.

    The Google-Wiz deal raises antitrust concerns. The US Justice Department has already filed cases against Google’s search and advertising businesses, threatening to force the company to divest itself of Chrome and/or Android. It’s thought, therefore, that regulators are expected to scrutinise the Wiz acquisition closely. The Justice Department is also exploring the impact made by Google’s deals to make its search engine the default for Apple and other platforms.

    Despite these challenges, Google and Wiz anticipate the deal will close in 2026, pending regulatory approval and completion of other conditions. Analysts at Mergermarket believe the companies would not have agreed to the deal without seeing a clear path to approval under the Trump administration.

    Business watchdog group, the Demand Progress Education Fund, has urged regulators to block the deal, arguing it would consolidate too much power in Google’s hands. Emily Peterson-Cassin, the group’s director of corporate power, said the acquisition would undermine competition in the cybersecurity market.

    Future of cloud and cybersecurity

    The Wiz deal reflects the trend of consolidation in the cybersecurity space. Google, Microsoft, and Amazon are investing heavily in cloud security to address rising threats and meet customer expectations for compliance and protection. According to Wedbush analysts, more deals will likely follow as organisations seek to boost their AI and security capabilities under a receptive US administration.

    Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

    Explore other upcoming enterprise technology events and webinars powered by TechForge here.

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