Tech Giants Invest in AI as UK Bans Misleading Crypto Ads, and US Congress Negotiates Funding
Several major developments occurred in the technology and political landscapes. Meta, formerly Facebook, planned to nearly double its spending on artificial intelligence (AI) projects this year, while Apple reported record iPhone sales despite dips in Mac sales. In the UK, advertising regulators banned Coinbase ads for implying cryptocurrency could ease cost of living concerns. Meanwhile, in the United States, Republicans and Democrats reached a preliminary funding agreement, though disagreements over Department of Homeland Security (DHS) funding persisted.
Meta CEO Mark Zuckerberg announced plans to increase AI spending to approximately $135 billion this year, a significant increase from the $72 billion spent in the previous year, according to the BBC. This investment aimed to position Meta at the forefront of the AI boom, with Zuckerberg anticipating "2026 to be the year that AI dramatically changes the way we work." Meta had already invested roughly $140 billion in AI over the past three years.
Apple reported record iPhone sales, driven by the new iPhone 17 range, according to BBC Technology. Revenue rose by 16% compared to the same period last year, reaching $144 billion, marking the strongest growth since 2021. Sales surged in China, Europe, the Americas, and Japan. Apple CEO Tim Cook stated the firm was in "supply chase mode" to meet high demand. However, sales of wearables and accessories, including the Apple Watch and AirPods, fell by roughly 3%, and Mac computer sales were down by just over 7%.
In the UK, the Advertising Standards Authority (ASA) banned Coinbase ads that suggested cryptocurrency could alleviate cost of living pressures. The ASA upheld complaints, finding the ads "trivialised the risks of cryptocurrency," which is largely unregulated in the UK, according to BBC Technology. The ads featured the UK in various states of disrepair alongside a satirical slogan and the Coinbase logo. Coinbase expressed disagreement with the ASA's decision.
Meanwhile, in the United States, Republicans and Democrats in the Senate reached an agreement to move forward with parts of a funding package, according to BBC World. However, a bill related to funding for the Department of Homeland Security (DHS) was removed from the package due to disagreements. Funding for DHS would continue at its current level for two weeks while both sides worked on a new deal to fund the agency.
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