EU Says Amazon, Microsoft Cloud Services Should Face Stricter Rules

FILE PHOTO: A Microsoft logo is seen next to a cloud in Los Angeles, California, US June 14, 2016. REUTERS/Lucy Nicholson/File Photo
FILE PHOTO: A Microsoft logo is seen next to a cloud in Los Angeles, California, US June 14, 2016. REUTERS/Lucy Nicholson/File Photo
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EU Says Amazon, Microsoft Cloud Services Should Face Stricter Rules

FILE PHOTO: A Microsoft logo is seen next to a cloud in Los Angeles, California, US June 14, 2016. REUTERS/Lucy Nicholson/File Photo
FILE PHOTO: A Microsoft logo is seen next to a cloud in Los Angeles, California, US June 14, 2016. REUTERS/Lucy Nicholson/File Photo

The EU said Thursday that the cloud services of Amazon and Microsoft should face tougher digital competition rules in Europe because of their dominant position in the sector, AFP reported.

Amazon Web Services and Microsoft's Azure are the largest and second-largest cloud computing services in the European Union respectively. They "will only continue to grow in importance, which is why it is essential that we ensure a well-functioning and competitive market", EU antitrust commissioner Teresa Ribera said.



Microsoft Plans to Unveil Next-generation AI Chip in September

A Microsoft sign seen through glass during the 2026 National Retail Federation (NRF) conference in New York (Reuters)
A Microsoft sign seen through glass during the 2026 National Retail Federation (NRF) conference in New York (Reuters)
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Microsoft Plans to Unveil Next-generation AI Chip in September

A Microsoft sign seen through glass during the 2026 National Retail Federation (NRF) conference in New York (Reuters)
A Microsoft sign seen through glass during the 2026 National Retail Federation (NRF) conference in New York (Reuters)

Microsoft is planning to unveil its new Maia 300 AI chip this fall, potentially as soon as next month, The Information reported on Monday, citing people with direct knowledge of the plans.

The company introduced its Maia AI chip in November 2023 but has lagged rivals such as Alphabet and Amazon in scaling up its in-house chip efforts as it seeks to reduce its reliance on Nvidia's costly processors.

Google began recognizing revenue from direct sales of its custom AI chips, called Tensor Processing Units, in the quarter ended June, while Amazon has also seen growing adoption of its processors, including its Trainium chips.

Microsoft has been in talks with chipmaker TSMC to secure manufacturing capacity for more than 300,000 units of the chip for delivery in 2027, according to the report. It is also looking to significantly ramp up production and persuade major cloud customers such as Anthropic to adopt the chip, Reuters reported.

Microsoft did not immediately respond to a Reuters request for comment. TSMC could not be reached for comment outside regular business hours.

Microsoft ultimately aims to secure capacity for more than 1 million Maia 300 chips, though component supplies and ongoing capacity negotiations with TSMC could constrain its plans, according to the report.

It unveiled its second-generation Maia 200 in January, built by TSMC using 3-nanometer technology.

Microsoft packed the chip with a significant amount of SRAM, a type of memory that can provide speed advantages for AI systems handling large numbers of user requests.


Meta Launches New AI Model as Zuckerberg Champions Open-weight Push

FILE PHOTO: The logo of Meta at the Meta Lab in Los Angeles, California, US, May 20, 2026. REUTERS/Daniel Cole/File Photo
FILE PHOTO: The logo of Meta at the Meta Lab in Los Angeles, California, US, May 20, 2026. REUTERS/Daniel Cole/File Photo
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Meta Launches New AI Model as Zuckerberg Champions Open-weight Push

FILE PHOTO: The logo of Meta at the Meta Lab in Los Angeles, California, US, May 20, 2026. REUTERS/Daniel Cole/File Photo
FILE PHOTO: The logo of Meta at the Meta Lab in Los Angeles, California, US, May 20, 2026. REUTERS/Daniel Cole/File Photo

Meta CEO Mark Zuckerberg called for lower US barriers for open-source AI models to better compete with Chinese rivals as the social media giant released a new open-weight model on Monday and said it plans to launch more such models soon.

The new model, Muse Glimmer, is much smaller than leading AI models from rivals and is instead designed for agentic tasks and can run on a Mac or PC with a single graphics card, aiming to tap demand for AI systems that run directly on people's devices, said Reuters.

Open-weight models are typically cheaper than leading models from so-called frontier labs such as OpenAI and Anthropic. They also come with publicly accessible core ‌components for easy customization, ‌unlike closed models that companies keep fully under their control.

Meta's ‌launch ⁠comes as the ⁠social media giant seeks to strengthen its position after forming a costly, new superintelligence team last year to propel itself back into the high-stakes AI race.

Zuckerberg's statement also marks the latest show of support for open-weight AI, which is gaining traction as businesses grow wary of ballooning AI bills and worry about recent cybersecurity incidents involving models from Anthropic, OpenAI and Meta.

Hugging Face, the AI coding collaboration site that was hacked ⁠by a rogue OpenAI model, said last month that ‌it used a Chinese open-weight model to defend against ‌the attack because closed-source models have restrictions on use for cybersecurity work.

Shares of Meta, which ‌have fallen about 10% so far this year, were up 1% in premarket ‌trading on Monday.

POLICY RETHINK NEEDED TO PROPEL OPEN-WEIGHT

Zuckerberg said in a statement that the US needed to rethink policies if domestic firms were to lead in open-weight models.

Chinese startups are leading the race for open-weight models, with Moonshot's Kimi K3, alongside Alibaba's Qwen3.8-Max and DeepSeek's V4-Flash, ‌delivering performance that rivals top systems by US AI labs. By contrast, the leading models of US developers OpenAI, Anthropic ⁠and Alphabet's Google are ⁠closed source.

"Foreign labs currently hold several advantages here since American labs have to comply with many additional restrictions on training data," Zuckerberg said, referring to open-source models.

"US policy must reduce this additional friction if we want American open source models to lead over time," Zuckerberg said, adding that restricting access to foreign open-source models was not an effective solution.

US President Donald Trump's administration told AI developers earlier this month that it will not put open-weight AI models through voluntary safety tests, according to two sources familiar with the discussions.

In his statement, Zuckerberg also advocated for AI model distillation, or using a powerful AI system to train a smaller model. He said that Meta would implement a governance structure to give its independent directors the power to approve the safety criteria for releasing models.


Meta Will Soon Face Another High-stakes Trial in US

The attorneys general of California, Colorado, Kentucky, and New Jersey allege Meta deliberately made Instagram and Facebook addictive for children. SEBASTIEN BOZON / AFP/File
The attorneys general of California, Colorado, Kentucky, and New Jersey allege Meta deliberately made Instagram and Facebook addictive for children. SEBASTIEN BOZON / AFP/File
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Meta Will Soon Face Another High-stakes Trial in US

The attorneys general of California, Colorado, Kentucky, and New Jersey allege Meta deliberately made Instagram and Facebook addictive for children. SEBASTIEN BOZON / AFP/File
The attorneys general of California, Colorado, Kentucky, and New Jersey allege Meta deliberately made Instagram and Facebook addictive for children. SEBASTIEN BOZON / AFP/File

With two convictions and nearly $1 billion in damages already stacked up, Meta will face another trial starting this week about alleged harms to children in a case brought by four US states.

The federal trial, one of the most consequential among a myriad of legal proceedings targeting social networks in the United States, will begin Wednesday with jury selection at a federal court in Oakland, near San Francisco, said AFP.

Opening statements are expected to start next week on August 18, with the trial lasting for roughly six weeks, followed by a verdict in early October.

The attorneys general of California, Colorado, Kentucky, and New Jersey allege the largest social media network in the world deliberately made Instagram and Facebook addictive for children.

And they are demanding a long list of restrictions on how Instagram and Facebook operate for minors, as well as up to $1.4 trillion in penalties -- nearly Meta's entire market cap which exceeded $1.5 trillion on Friday.

CEO and founder Mark Zuckerberg is among the star witnesses the prosecution plans to call to the stand; he also testified six months ago in a separate case that took place in a Los Angeles court.

While Zuckerberg has been known to spend an increasing amount of time living at his home in Hawaii, the company's headquarters in Menlo Park is about an hour's drive from the courthouse.

- 'Facebook Files' -

The Oakland trial is the culmination of a standoff that began in late 2021, when a former employee, Frances Haugen, leaked thousands of pages of internal research, dubbed the "Facebook Files," which showed that Meta had internally measured the potential harm Instagram was causing to some teenage girls, while publicly downplaying the impact.

The revelations triggered a joint investigation by dozens of states, which two years later resulted in a complaint filed by around 30 state attorneys general.

Four states will now attempt to prove their case together in Oakland.

TikTok, Snapchat and Google-owned YouTube have also been sued by thousands of families, school districts and prosecutors across the country in various local, state and federal lawsuits.

In a landmark trial that concluded in March, Meta and YouTube were convicted by a Los Angeles jury, which found both companies were responsible for a teenager's social media addiction.

That jury awarded the teenager $6 million.

On Thursday, a judge in New Mexico ordered Meta to implement product changes and pay more than half a billion dollars in damages to the state to fund the treatment and prevention of harms caused by Facebook and Instagram.

A jury in New Mexico previously ordered Meta to pay $375 million after it found the company liable for endangering children by making them vulnerable to predators on its platforms, among other harms.

Meta has appealed, or intends to appeal, all of these decisions.

Meta is "confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts," Meta told AFP in a statement Thursday.

The company intends to argue that mental health is an industry-wide issue, and that some of the states' claims are protected by free speech laws.

In May, Snap, TikTok, YouTube and Meta settled with a school district in Kentucky for $27 million to avoid another trial that was expected to set a precedent for around 1,200 similar lawsuits.

- Immunity over content -

The four states in the Oakland trial accuse Meta of violating their consumer protection laws, in addition to a federal law that protects children's data, known as COPPA.

They allege that multiple features were designed to keep minors hooked, particularly infinite scrolling, excessive notifications and "like" counts.

It's a strategy that focuses on how apps are designed, not what is posted on them, essentially sidestepping the broad immunity internet sites enjoy in the US regarding content created by their users.

The staggering $1.4 trillion in alleged damages comes from estimating the number of affected users in the four states.

However, the jury will have only an advisory role and Judge Yvonne Gonzalez Rogers -- who oversaw major trials between Apple and Epic Games, and Elon Musk and OpenAI -- will decide on penalties, if Meta loses the case.

Parents of teenagers allegedly harmed by social networks might watch from inside the courtroom, as they did in Los Angeles, while the rest of the country can follow the proceedings from an audio-only livestream on YouTube.