EU Walks a Fine Line with Modest Penalties for Apple and Meta to Avoid U.S. Backlash

FT

The EU is set to impose minimal fines on Apple and Meta next week under its Digital Markets Act, seeking to avoid escalating tensions with US President Donald Trump, the Financial Times reports citing people familiar with the decisions. Apple will face penalties and be ordered to revise its App Store rules for restricting developers, while Meta will be required to change its “pay or consent” model for data tracking. Despite the DMA allowing fines of up to 10% of global turnover, the EU plans to issue smaller penalties, prioritizing compliance over confrontation amid Trump’s criticism of EU actions as “extortion.” The decisions are expected to be finalized and announced next week.

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Trump Considers Lowering Tariffs to Secure TikTok Sale Deal with China

Reuters

President Donald Trump said he might lower tariffs on China to secure Beijing’s support for selling TikTok’s U.S. operations to an American company. While predicting a deal outline by next week, Trump indicated Thursday he could extend the deadline if needed. TikTok’s sale requires approval from both Trump and the Chinese government, with concerns over whether ByteDance could retain its algorithm. Trump, who once sought to ban the app, now credits TikTok with aiding his 2024 campaign.

The tariffs’ reduction could face pushback as experts warn it may signal tolerance for economic pressure tactics. Apple, a company that prides itself on privacy and security, did not make this decision lightly. Having invested billions in cryptographic technology, it was nonetheless forced into compliance by a government mandate requiring it to introduce security weaknesses. This move not only affects UK users but has global implications, as compromising encryption in one region can undermine security worldwide.

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Signal’s Downloads Soar Amid Fallout from Leaked Military Chats

TechCrunch

Signal said app downloads last week are double what they were the previous week, as the not-for-profit app—operating on a modest $50 million annual budget—surges ahead of competitors like Meta’s WhatsApp and Apple’s iMessage. The spike followed The Atlantic’s publication of leaked group chat details, revealing Defense Secretary Pete Hegseth and top Trump officials discussing sensitive military plans. Originally a hacker’s privacy passion project by Moxie Marlinspike, Signal has evolved into a trusted platform for secure communication, now boasting 30 million monthly users and attracting Washington’s elite amid rising concerns over surveillance and data breaches.

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Meta Brings Social Back to Social Media with Friends Tab, Downloads Spike

NY Times

Meta said this week that Facebook app downloads surged in the U.S. and Canada, following its announcement of a “Friends Tab” to showcase posts exclusively from friends and family. With CEO Mark Zuckerberg aiming to revive Facebook’s original social connection mission, the new feature brings back “OG Facebook” vibes amid criticism that recommended content from influencers and brands had overwhelmed personal posts. Though the Friends Tab may not overtake the Home feed of algorithmic suggestions, Meta’s move reflects its effort to make social media “feel social” again while balancing its reliance on creator-driven content.

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Satellite Calls on Smartphones Coming to the UK by 2025, Says Ofcom

Ofcom

Britons could make satellite calls from regular smartphones by late 2025, Ofcom announced.

The regulator is consulting on allowing satellites to beam signals to phones in rural areas with no network coverage.

Speeds won’t match 4G or 5G, but experts say it’s a step toward full connectivity. Vodafone recently tested satellite calls, with services expected to launch soon.

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CoreWeave Scales Back IPO to $1.5 Billion Amid AI Market Caution

Reuters

CoreWeave, a cloud provider specializing in AI infrastructure, scaled back its IPO, raising $1.5 billion instead of the $4 billion originally targeted reflecting growing caution around the AI market’s rapid expansion. The initial public offer was trimmed despite Nvidia’s involvement as both a supplier and investor. CoreWeave powers key mobile and AI ecosystems with its infrastructure, supporting applications like generative AI and cloud gaming. CoreWeave’s services are critical for mobile apps and platforms reliant on high-performance cloud computing, making this a key moment for tech integration in the mobile ecosystem.

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DeepSeek’s Quiet V3 Update Sets New AI Benchmarks, Challenges OpenAI’s Dominance

Reuters

China’s AI startup DeepSeek has released an update to its V3 model, enhancing its programming capabilities and aiming to stay ahead of competitors like OpenAI. The V3-0324 update, shared on Hugging Face this week without a formal announcement, addresses real-world challenges while setting new benchmarks for accuracy and efficiency. DeepSeek made headlines in January when it surpassed ChatGPT to become the most popular free app on the US Apple App Store. Its R1 model, which rivaled OpenAI’s best, triggered a selloff in US markets and sparked debates about the feasibility of building cutting-edge AI platforms with far fewer resources than what US companies are investing in datacenter construction.

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Revenue Skyrockets, Profits Lag: OpenAI Won’t Break Even Until 2029

Reuters

OpenAI, the creator of ChatGPT, is projected to triple its revenue this year to $12.7 billion, up from $3.7 billion in 2024.

The surge comes from paid AI tools like ChatGPT Pro and enterprise subscriptions.

Despite rapid growth, OpenAI doesn’t expect profitability until 2029, forecasting $125 billion in revenue by then.

It’s also exploring a $40 billion funding round led by SoftBank, reflecting the AI sector’s growing significance in driving mobile and cloud-based innovation.

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