Tech Giants Face Scrutiny and Market Volatility Amidst AI Investments and Regulatory Pressure
Several major technology companies faced increased scrutiny and market fluctuations this week, driven by factors ranging from regulatory pressure in Europe to internal disputes and massive investments in artificial intelligence (AI).
The European Union (EU) Commission informed TikTok that it must change its "addictive design" or face significant fines after a preliminary investigation found the video-sharing platform had breached online safety rules, according to BBC Technology. The Commission's investigation, which began in February 2024, concluded that TikTok did not "adequately assess" how features like autoplay could harm users' wellbeing, particularly children, and failed to implement measures to mitigate these risks. A TikTok spokesperson disputed the findings, calling them a "categorically false and entirely meritless depiction of our platform" and stated the company's intention to challenge them.
Meanwhile, the CEO of OpenAI, Sam Altman, drew criticism for his reaction to a rival chatbot firm's Super Bowl advertisement. According to BBC Technology, Altman launched a lengthy attack on Anthropic via X, accusing the firm of being "dishonest" and "deceptive" for criticizing the introduction of commercials to ChatGPT. Commenters on social media likened Altman's post to "the digital equivalent of a toddler throwing a tantrum."
In other news, Amazon's shares fell after the company announced plans to invest $200 billion in AI and infrastructure, reported BBC Business. This figure dwarfs the $125 billion Amazon spent on AI last year. Investors appeared rattled by the announcement, sending the company's shares down more than 11% in after-hours trading. Amazon joins other Big Tech players – Meta, Google, and Microsoft – in a massive AI spending spree, with the group collectively planning to invest $650 billion in AI and related projects this year. However, some figures in finance and technology have warned that AI is at risk of becoming a bubble.
Adding to the shifting landscape, Spanish Prime Minister Pedro Sanchez announced plans to ban social media for under-16s in the country, describing social media platforms as "the Wild West," according to Al Jazeera. Sanchez also stated plans to hold platform executives responsible for criminal or harmful content. Social media executives, including Elon Musk, owner of X, criticized the proposed measures. Musk called Sanchez a "true fascist totalitarian."
In response to rising silver prices, jeweler Pandora announced it would switch from using silver to platinum-plating in some of its ranges, according to BBC Business. Silver prices have more than doubled over the past year, prompting the change. Pandora's chief executive, Berta de Pablos-Barbier, said the aim was not to make all jewelry platinum-plated, but to reduce silver to around 25% of its goods to reduce exposure to the metal's volatility.
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