EU Bows to Pressure on Loosening AI, Privacy Rules

Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File
Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File
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EU Bows to Pressure on Loosening AI, Privacy Rules

Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File
Brussels denies pressure from the US administration influenced its push to 'simplify' the bloc's digital rules. INA FASSBENDER / AFP/File

The European Union is set next week to kickstart a rollback of landmark rules on artificial intelligence and data protection that face powerful pushback on both sides of the Atlantic.

Part of a bid to slash red tape for European businesses struggling against US and Chinese rivals, the move is drawing accusations that Brussels is putting competitiveness ahead of citizens' privacy and protection, AFP said.

Brussels denies that pressure from the US administration influenced its push to "simplify" the bloc's digital rules, which have drawn the wrath of President Donald Trump and American tech giants.

But the European Commission says it has heard the concerns of EU firms and wants to make it easier for them to access users' data for AI development -- a move critics attack as a threat to privacy.

One planned change could unite many Europeans in relief however: the EU wants to get rid of those pesky cookie banners seeking users' consent for tracking on websites.

According to EU officials and draft documents seen by AFP, which could change before the November 19 announcement, the European Commission will propose:

-- a one-year pause in the implementation of parts of its AI law

-- overhauling its flagship data protection rules, which privacy defenders say will make it easier for US Big Tech to "suck up Europeans' personal data".

The bloc's cornerstone General Data Protection Regulation (GDPR) enshrined users' privacy from 2018 and influenced standards around the world.

The EU says it is only proposing technical changes to streamline the rules, but rights activists and EU lawmakers paint a different picture.

The EU executive proposes to narrow the definition of personal data, and allow companies to process such data to train AI models "for purposes of a legitimate interest", a draft document shows.

Reaction to the leaks has been swift -- and strong.

"Unless the European Commission changes course, this would be the biggest rollback of digital fundamental rights in EU history," 127 groups, including civil society organizations and trade unions, wrote in a letter on Thursday.

Online privacy activist Max Schrems warned the proposals "would be a massive downgrading of Europeans' privacy" if they stay the same.

An EU official told AFP that Brussels is also expected to propose a one-year delay on implementing many provisions on high-risk AI, for example, models that can pose dangers to safety, health or citizens' fundamental rights.

Instead of taking effect next year, they would apply from 2027.

This move comes after heavy pressure from European businesses and US Big Tech.

Dozens of Europe's biggest companies, including France's Airbus and Germany's Lufthansa and Mercedes-Benz, called for a pause in July on the AI law which they warn risks stifling innovation.

Commission president Ursula von der Leyen faces a battle ahead as the changes will need the approval of both the EU parliament and member states.

Her conservative camp's main coalition allies have raised the alarm, with the socialists saying they oppose any delay to the AI law, and the centrists warning they would stand firm against any changes that undermine privacy.

Noyb, a campaign group founded by Schrems, published a scathing takedown of the EU's plans for the GDPR and what they entail.

The EU has pushed back against claims that Brussels will reduce privacy.

"I can confirm 100 percent that the objective... is not to lower the high privacy standards we have for our citizens," EU spokesman for digital affairs, Thomas Regnier, said.

But there are fears that more changes to digital rules are on the way.

The proposals are part of the EU executive's so-called simplification packages to remove what they describe as administrative burdens.

Brussels rejects any influence from Trump -- despite sustained pressure since the first weeks of the new US administration, when Vice President JD Vance railed against the "excessive regulation" of AI.

This "started before the mandate of the president of the US", chief commission spokeswoman Paula Pinho said this week.

Calls for changes to AI and data rules have been growing louder in Europe.

A major report last year by Italian ex-premier Mario Draghi also warned that data rules could hamper European businesses' AI innovation.



AI to Track Icebergs Adrift at Sea in Boon for Science

© Jonathan NACKSTRAND / AFP
© Jonathan NACKSTRAND / AFP
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AI to Track Icebergs Adrift at Sea in Boon for Science

© Jonathan NACKSTRAND / AFP
© Jonathan NACKSTRAND / AFP

British scientists said Thursday that a world-first AI tool to catalogue and track icebergs as they break apart into smaller chunks could fill a "major blind spot" in predicting climate change.

Icebergs release enormous volumes of freshwater when they melt on the open water, affecting global climate patterns and altering ocean currents and ecosystems, reported AFP.

But scientists have long struggled to keep track of these floating behemoths once they break into thousands of smaller chunks, their fate and impact on the climate largely lost to the seas.

To fill in the gap, the British Antarctic Survey has developed an AI system that automatically identifies and names individual icebergs at birth and tracks their sometimes decades-long journey to a watery grave.

Using satellite images, the tool captures the distinct shape of icebergs as they break off -- or calve -- from glaciers and ice sheets on land.

As they disintegrate over time, the machine performs a giant puzzle problem, linking the smaller "child" fragments back to the "parent" and creating detailed family trees never before possible at this scale.

It represents a huge improvement on existing methods, where scientists pore over satellite images to visually identify and track only the largest icebergs one by one.

The AI system, which was tested using satellite observations over Greenland, provides "vital new information" for scientists and improves predictions about the future climate, said the British Antarctic Survey.

Knowing where these giant slabs of freshwater were melting into the ocean was especially crucial with ice loss expected to increase in a warming world, it added.

"What's exciting is that this finally gives us the observations we've been missing," Ben Evans, a machine learning expert at the British Antarctic Survey, said in a statement.

"We've gone from tracking a few famous icebergs to building full family trees. For the first time, we can see where each fragment came from, where it goes and why that matters for the climate."

This use of AI could also be adapted to aid safe passage for navigators through treacherous polar regions littered by icebergs.

Iceberg calving is a natural process. But scientists say the rate at which they were being lost from Antarctica is increasing, probably because of human-induced climate change.

 


AMD Predicts Weaker First-Quarter Sales, Shares Plunge on Nvidia Comparisons

An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
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AMD Predicts Weaker First-Quarter Sales, Shares Plunge on Nvidia Comparisons

An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)

Advanced Micro Devices on Tuesday forecast a slight decline in quarterly revenue, raising concerns about whether it ​can effectively challenge Nvidia in the booming AI market and sending its shares tumbling 8% in after-hours trade.

The lackluster prediction comes despite an unexpected boost from sales of certain artificial intelligence chips to China, which began in the last quarter after the Trump administration approved a license for orders that AMD received in early 2025.

And without those sales to China which generated $390 million, AMD's data-center segment would have missed estimates for the fourth quarter.

AMD said it expects revenue of about $9.8 billion this quarter, plus or minus $300 million. That's down from $10.27 billion in the fourth-quarter which was up 34% year-on-year and ahead of LSEG ‌estimates for $9.67 billion.

PALES ‌NEXT TO NVIDIA

Though AMD is seen as one of the ‌few ⁠contenders ​that can seriously ‌challenge Nvidia, investors noted the stark contrast between the two companies' performances. AMD expects an adjusted gross margin of 55% this quarter. Nvidia has said it expects adjusted gross margin in the mid-70% range during its fiscal 2027.

"The expectations for large blowout quarters for AI-related hardware companies have skewed what the market is looking for," said Bob O'Donnell, president of TECHnalysis Research.

The forecast for the current first quarter includes $100 million from sales to China, where the situation remains "dynamic," AMD CEO Lisa Su said on a conference call with investors.

The US government ⁠has placed restrictions on the exports of advanced chips to China, but AMD received licenses to sell modified versions of its MI300 series ‌of AI chips there. Its MI308 chip competes with Nvidia's H20 ‍chip in China.

OPENAI SALES

AMD has accelerated its ‍product launches and is moving into selling full AI systems to better compete against Nvidia, which now ‍provides "rack-scale" systems that combine GPUs, CPUs and networking gear.

Last year, it entered into a multi-year deal to supply AI chips to ChatGPT-owner OpenAI, which would bring in tens of billions of dollars in annual revenue and give the startup the option to buy up to roughly 10% of the chipmaker.

Su reiterated on Tuesday that the company ​expects sales of a new flagship AI server to OpenAI and others to rise rapidly in the second half of this year, saying a global memory-chip crunch will not ⁠slow its plans.

"I do not believe that we will be supply-limited in terms of the ramp that we put in place," Su said.

BEYOND OPENAI

As Big Tech and governments across the globe double down on investing in AI hardware, shares in Santa Clara, California-based AMD have doubled since the start of 2025, outperforming a 60% bump in the broader chip index.

But analysts remain concerned that AMD's success remains tied to a handful of customers that rivals such as Nvidia could try to poach. Reuters reported this week that Nvidia made a $20 billion move to hire most of chip startup Groq's founders after OpenAI held chip supply discussions with the startup.

"Growth appears concentrated in large deployments and specific regions, and China shipments are significant enough to influence a quarter," said eMarketer analyst Gadjo Sevilla.

Revenue in AMD's key data-center segment grew 39% to $5.38 billion in the ‌fourth quarter. But excluding sales of the MI308, which is a data-center chip, that revenue would have been $4.99 billion, below estimates of $5.07 billion.


Switch 2 Sales Boost Nintendo Results but Chip Shortage Looms

This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
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Switch 2 Sales Boost Nintendo Results but Chip Shortage Looms

This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)

The runaway success of the Switch 2 console drove up Nintendo's net profit by more than 50 percent in the nine months to December, the Japanese video game giant said Tuesday.

But a global memory chip shortage, created by frenzied demand for artificial intelligence hardware, could push up manufacturing costs.

The Switch 2 became the world's fastest-selling games console after launching to a fan frenzy last summer.

It is the successor to the original Switch, which soared in popularity during the pandemic when games such as "Animal Crossing" struck a chord during long lockdowns.

Both are hybrid devices that can be connected to a TV or used on-the-go.

In April-December, net profit jumped 51.3 percent year-on-year to 358.9 billion yen ($2.3 billion), and revenue nearly doubled on-year to 1.9 trillion yen, Nintendo said.

But the firm kept its annual unit sales target for the Switch 2 steady at 19 million, and also held its full-year net profit forecast of 350 billion yen.

"Nintendo Switch 2 got off to a good start following its launch on June 5 and unit sales continued to grow through the holiday season," the company said.

Nearly 17.4 million Switch 2 devices were sold in the nine-month period, it added.

"Maintaining momentum is certainly a big focus for Nintendo," Krysta Yang of the Nintendo-focused Kit and Krysta Podcast told AFP.

A lack of heavy-hitting first-party new games for the Switch 2 in coming months risks hindering growth, although third-party titles such as "Resident Evil Requiem" should help fill the gap, she said.

Nintendo said Tuesday it planned to release "Mario Tennis Fever" this month and "Pokemon Pokopia" in March.

While the firm is diversifying into hit movies and theme parks, consoles remain the core of its business.

The Switch 1 has now sold 155.37 million units -- overtaking the Nintendo DS console to be its best-selling hardware of all time.

But soaring prices for memory chips, used in gaming consoles as well as phones, laptops and other electronics, will likely be a headwind for the company.

Their prices have been pushed up as chipmakers focus on producing the advanced memory chips in huge demand to power AI data centers.

"Nintendo and other console manufacturers are publicly keeping quiet about the impact of the shortage," gaming industry consultant Serkan Toto told AFP.

But "users can forget the past when consoles always became cheaper in tandem with component costs falling over time", with price hikes potentially on the way in 2026, he said.

Yang said she thought a price increase for the Switch 2 "is not out of the question" but added that Nintendo "would likely exhaust all other options" before doing so.