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Microsoft Relaxes Data Center Grip on OpenAI Amid $500 Bln Joint Venture 

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, Jan. 25, 2021. (Reuters) 
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, Jan. 25, 2021. (Reuters) 
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Microsoft Relaxes Data Center Grip on OpenAI Amid $500 Bln Joint Venture 

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, Jan. 25, 2021. (Reuters) 
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, Jan. 25, 2021. (Reuters) 

Microsoft on Tuesday said it has changed some key terms of a deal with OpenAI after the ChatGPT creator announced a joint venture with Oracle and Japan's SoftBank Group to build up to $500 billion of new AI data centers in the United States.

President Donald Trump gathered the leaders of the "Stargate" effort at the White House on Tuesday to announce the deal, saying it was intended to help keep the United States ahead of China and other rivals in the global AI race, using chips from Nvidia.

Since 2019, Microsoft has had arrangements with OpenAI that gave the Redmond, Washington-based company the exclusive right to build new computing infrastructure for OpenAI. Microsoft, in a blog post, said it has "approved OpenAI's ability to build additional capacity, primarily for research and training of models."

That opened the door for OpenAI to work with Oracle.

A person familiar with the deal said that Stargate is a joint venture structured as a new entity in which OpenAI has an equity stake, governance rights and operational control. It will have a separate board appointed by the founding members and its own CEO, this person said.

Microsoft, along with Nvidia and Arm, will be a "technology partner" in the new venture, but is not listed as an equity funder. SoftBank CEO Masayoshi Son is will be the entity's board chairman, according to a statement from OpenAI posted on social media site X.

But Microsoft said that it still retains the exclusive right to offer OpenAI's API - technology shorthand for application programming interface, which is the main way that software developers and business customers buy OpenAI's services. That means Oracle will not be able to host OpenAI's primary source of revenue.

Oracle did not immediately respond to a request for comment on Microsoft's statements.

Microsoft said it has "revenue sharing agreements that flow both ways" with OpenAI.

"The key elements of our partnership remain in place for the duration of our contract through 2030, with our access to OpenAI’s IP, our revenue sharing arrangements and our exclusivity on OpenAI’s APIs all continuing forward," Microsoft said.

Microsoft also said "OpenAI recently made a new, large Azure commitment that will continue to support all OpenAI products as well as training," referring to Microsoft's Azure cloud computing service.

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Technology

KAUST Scientists Develop AI-Generated Data to Improve Environmental Disaster Tracking

King Abdullah University of Science and Technology (KAUST) logo
King Abdullah University of Science and Technology (KAUST) logo
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KAUST Scientists Develop AI-Generated Data to Improve Environmental Disaster Tracking

King Abdullah University of Science and Technology (KAUST) logo
King Abdullah University of Science and Technology (KAUST) logo

King Abdullah University of Science and Technology (KAUST) and SARsatX, a Saudi company specializing in Earth observation technologies, have developed computer-generated data to train deep learning models to predict oil spills.

According to KAUST, validating the use of synthetic data is crucial for monitoring environmental disasters, as early detection and rapid response can significantly reduce the risks of environmental damage.

Dean of the Biological and Environmental Science and Engineering Division at KAUST Dr. Matthew McCabe noted that one of the biggest challenges in environmental applications of artificial intelligence is the shortage of high-quality training data.

He explained that this challenge can be addressed by using deep learning to generate synthetic data from a very small sample of real data and then training predictive AI models on it.

This approach can significantly enhance efforts to protect the marine environment by enabling faster and more reliable monitoring of oil spills while reducing the logistical and environmental challenges associated with data collection.

Technology

Uber, Lyft to Test Baidu Robotaxis in UK from Next Year 

A sign of Baidu is pictured at the company's headquarters in Beijing, China March 16, 2023. (Reuters)
A sign of Baidu is pictured at the company's headquarters in Beijing, China March 16, 2023. (Reuters)
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Uber, Lyft to Test Baidu Robotaxis in UK from Next Year 

A sign of Baidu is pictured at the company's headquarters in Beijing, China March 16, 2023. (Reuters)
A sign of Baidu is pictured at the company's headquarters in Beijing, China March 16, 2023. (Reuters)

Uber Technologies and Lyft are teaming up with Chinese tech giant Baidu to try out driverless taxis in the UK next year, marking a major step in the global race to commercialize robotaxis.

It highlights how ride-hailing platforms are accelerating autonomous rollout through partnerships, positioning London as an early proving ground for large-scale robotaxi services ‌in Europe.

Lyft, meanwhile, plans ‌to deploy Baidu's ‌autonomous ⁠vehicles in Germany ‌and the UK under its platform, pending regulatory approval. Both companies have abandoned in-house development of autonomous vehicles and now rely on alliances to accelerate adoption.

The partnerships underscore how global robotaxi rollouts are gaining momentum. ⁠Alphabet's Waymo said in October it would start ‌tests in London this ‍month, while Baidu ‍and WeRide have launched operations in the ‍Middle East and Switzerland.

Robotaxis promise safer, greener and more cost-efficient rides, but profitability remains uncertain. Public companies like Pony.ai and WeRide are still loss-making, and analysts warn the economics of expensive fleets could pressure margins ⁠for platforms such as Uber and Lyft.

Analysts have said hybrid networks, mixing robotaxis with human drivers, may be the most viable model to manage demand peaks and pricing.

Lyft completed its $200 million acquisition of European taxi app FreeNow from BMW and Mercedes-Benz in July, marking its first major expansion beyond North America and ‌giving the US ride-hailing firm access to nine countries across Europe.

Technology

Italy Fines Apple Nearly 100m Euros over App Privacy Feature

An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo Purchase Licensing Rights
An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo Purchase Licensing Rights
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Italy Fines Apple Nearly 100m Euros over App Privacy Feature

An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo Purchase Licensing Rights
An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo Purchase Licensing Rights

Italy's competition authority said Monday it had fined US tech giant Apple 98 million euros ($115 million) for allegedly abusing its dominant position in the mobile app market.

According to AFP, the AGCM said in a statement that Apple had violated privacy regulations for third-party developers in a market where it "holds a super-dominant position through its App Store".

The body said its investigation had established the "restrictive nature" of the "privacy rules imposed by Apple... on third-party developers of apps distributed through the App Store".

The rules of Apple's App Tracking Transparency (ATT) "are imposed unilaterally and harm the interests of Apple's commercial partners", according to the AGCM statement.

French antitrust authorities earlier this year handed Apple a 150-million euro fine over its app tracking privacy feature.

Authorities elsewhere in Europe have also opened similar probes over ATT, which Apple promotes as a privacy safeguard.

The feature, introduced by Apple in 2021, requires apps to obtain user consent through a pop-up window before tracking their activity across other apps and websites.

If they decline, the app loses access to information on that user which enables ad targeting.

Critics have accused Apple of using the system to promote its own advertising services while restricting competitors.