EU Assesses Big Tech Cases Ahead of Trump’s Arrival

/in /tarafından

The European Commission affirmed on Tuesday that it is proceeding with its investigations into U.S. Big Tech companies, including Apple, Alphabet, X, and Meta, and stressed that President-elect Donald Trump’s return to the White House would not alter its commitment to enforcing European laws. The EU has been at the forefront of examining whether these companies have violated laws designed to prevent them from gaining an unfair advantage over competitors.

Trump, who will begin his second term on Monday, has been critical of several European policies, while his ally Elon Musk has clashed with EU regulators on multiple occasions. Reports surfaced on Tuesday suggesting that Brussels might reassess its ongoing investigations of Big Tech, potentially scaling back or altering the scope of the probes at the request of U.S. companies seeking Trump’s intervention.

However, Henna Virkkunen, the EU commissioner responsible for policy, reassured Reuters that investigations are proceeding as usual and no decisions have been made to suspend them. A spokesperson for the European Commission emphasized that the assessments were routine and unrelated to Trump’s upcoming presidency. The focus of these assessments is on evaluating the progress of cases, the allocation of resources, and the overall readiness of investigations.

U.S. tech companies have long complained that European regulations stifle innovation and impose hefty fines. Meta CEO Mark Zuckerberg recently urged Trump to intervene and prevent further fines from the EU. He likened the EU’s competition enforcement to a “tariff” on U.S. firms. The Digital Markets Act (DMA), Digital Services Act (DSA), and the EU AI Act have drawn particular criticism from tech industry leaders, including Musk, who was scrutinized earlier this month after hosting controversial figures on his X platform.

The EU’s investigations, which can take several years, have already resulted in significant penalties. Last November, Meta was fined nearly 800 million euros ($821 million) for anti-competitive practices. Ongoing investigations into X, Apple, and Alphabet have yet to reach a conclusion.

In the face of criticism, Thierry Breton, the former EU industry chief, urged that the Commission resist efforts to weaken its regulations, asserting that regulation is not censorship.

 

Private Equity Investor Adebayo Ogunlesi Joins OpenAI’s Board

/in /tarafından

OpenAI announced on Tuesday that Adebayo Ogunlesi, a prominent private equity veteran and current CEO of Global Infrastructure Partners (GIP), has joined its board of directors. Ogunlesi, 71, will advise the AI company on securing the infrastructure necessary to further advance its artificial intelligence development.

GIP, a private equity firm founded in 2006, specializes in infrastructure investments, managing more than $100 billion in assets. The firm’s portfolio includes high-profile assets such as Gatwick Airport, the Port of Melbourne, and significant offshore wind projects. Last year, BlackRock acquired GIP for $12.5 billion.

AI infrastructure has become a crucial element in the race for AI dominance, with the success of AI technologies heavily reliant on the ability to build and maintain vast compute infrastructures. This typically involves specialized data centers that link thousands of chips in clusters to process data at scale. According to projections, tech giants like Amazon, Microsoft, Alphabet, Meta, and Apple will spend over $200 billion on capital expenditures related to AI infrastructure in 2025, nearly double the amount spent in 2021.

OpenAI has also been advocating for U.S. government policies that would support the country’s AI initiatives, aiming to ensure that investments in AI remain within the U.S. to prevent China-backed projects from gaining an upper hand in global influence. OpenAI’s recent policy proposals highlight the estimated $175 billion waiting to be invested in AI projects, warning that failure to attract these funds could result in them flowing to China.

 

Meta to Lay Off 5% of ‘Lowest Performers’, Plans to Rehire for Impacted Roles

/in /tarafından

Meta Platforms announced that it will lay off approximately 5% of its workforce, targeting its “lowest performers.” The company, which employed more than 72,000 individuals as of September 30, will seek to fill the positions of those affected later this year. The decision is part of Meta’s ongoing efforts to “raise the bar” on performance management, according to a spokesperson for CEO Mark Zuckerberg.

Zuckerberg has previously indicated that more job cuts could be on the horizon in the coming months, as the company works to streamline operations and improve efficiency. This is in line with Meta’s broader shift toward prioritizing artificial intelligence (AI) investments, with billions being funneled into AI infrastructure to stay competitive in the rapidly evolving tech landscape. Many other tech firms, including Cisco and IBM, have made similar moves to redirect investments into AI.

The announcement follows significant restructuring efforts in 2022, which led to the loss of around 11,000 jobs. Meta’s “Year of Efficiency” in 2023 saw the company eliminate an additional 10,000 roles as part of cost-cutting initiatives.

In a related move, Meta also made headlines last week by canceling its U.S. fact-checking program and relaxing restrictions on certain controversial topics. This was seen as a response to pressure from conservative groups ahead of Donald Trump’s return to the U.S. presidential race.