The TechWave - Edition 11 | 01-15/07/2025

Welcome to The TechWave by SmartDev, your go-to source for the latest IT news. In today’s rapidly evolving tech landscape, staying informed is key. We break down the biggest updates, making it easier for you to understand the trends shaping the industry.

EU Unveils AI Code of Practice to Help Businesses Comply with New Rules

The European Union has unveiled a voluntary code of practice for general-purpose artificial intelligence to help businesses in the 27-nation bloc comply with its upcoming AI regulations. The code, which complements the EU’s AI Act, focuses on three key areas: transparency for AI model providers, copyright protections, and ensuring the safety and security of advanced AI systems.

The AI Act, set to take effect on August 2, 2025, will regulate AI based on risk levels, with some applications being banned outright. Companies that violate the rules could face fines up to 35 million euros or 7% of their global revenue. While the regulations are set to be enforced in stages, the EU’s AI Office will not begin enforcement until at least 2026.

The introduction of the AI code aims to ensure that AI systems used in Europe remain safe, transparent, and aligned with the bloc’s values of technology sovereignty and security. However, some tech companies, including Meta, have raised concerns over the regulations, and over 40 European firms have called for a delay in enforcement to allow for clearer guidelines. Despite these concerns, the EU remains committed to advancing its AI regulatory framework, ensuring that innovations in AI are deployed safely and responsibly.

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Apple Hits Pause on Its Plan to Compete with Amazon, Microsoft, and Google Cloud

Apple has decided to pause its ambitions to compete directly with Amazon, Microsoft, and Google in the cloud market. The company had been exploring opportunities to expand its cloud services, with the potential to challenge the dominance of these tech giants. However, Apple has now reassessed its strategy, citing challenges and the highly competitive nature of the cloud computing industry.

The move reflects Apple’s ongoing shift in focus, as the company prioritizes its core areas such as consumer electronics and services. While cloud computing remains an integral part of many tech companies' portfolios, Apple's hesitation to dive deeper into this space highlights its caution and strategic adjustments in response to market conditions.

Apple's decision could also signal an increasing emphasis on improving its existing services, such as iCloud, without directly competing with the dominant cloud providers. The company’s shift may have broader implications for its future strategy in the tech industry.

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Google Adds Image-to-Video Generation Capability to Veo 3

Google has introduced a new feature to its Veo 3 tool, adding image-to-video generation capabilities. This enhancement allows users to convert static images into dynamic video content, opening up new creative possibilities for professionals and content creators.

The image-to-video feature uses advanced AI algorithms to analyze images and generate corresponding video sequences, enabling seamless integration of still visuals with motion. This makes it easier for creators to produce engaging video content from existing imagery, without requiring advanced video production skills.

By expanding Veo 3’s functionality, Google is positioning the tool as a powerful resource for content creation, providing users with an intuitive and efficient way to produce videos that capture the attention of their audience.

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Amazon Must Face U.S. Class Action Over Alexa Users’ Privacy

Amazon has been ordered to face a class action lawsuit in the U.S. over privacy issues concerning its Alexa voice assistant. The lawsuit alleges that Amazon unlawfully collected and stored users’ voice recordings without their explicit consent, violating privacy laws. The plaintiffs argue that Amazon’s actions are in violation of consumer protection regulations, as the company failed to properly inform users or obtain their consent before storing their voice data.

The case highlights ongoing concerns about data privacy and security surrounding voice-activated devices, with consumers increasingly wary about how their personal information is being handled. This legal battle could have significant implications for Amazon and other tech companies operating in the smart device space, particularly regarding the transparency and control users have over their data.

Amazon has not commented publicly on the ruling, but the case marks a critical moment in the broader conversation about privacy rights and digital surveillance in the age of artificial intelligence.

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Telegram’s TOP Becomes Unicorn with $28.5M Series A

Telegram’s blockchain startup, TOP (The Open Platform), secured $28.5 million in Series A funding, achieving a $1 billion valuation. Founded in 2023, TOP emerged from Telegram's halted TON project and plans to leverage Telegram's billion-user base to integrate cryptocurrency and Web3 technologies.

TOP’s flagship product, Wallet in Telegram, is a non-custodial crypto wallet gaining traction in Russia and Asia. With the new funding, TOP plans to expand into the US and Europe, further developing its portfolio of TON-based services, including decentralized exchanges, NFT marketplaces, and AI tools.

The company’s success is backed by strong investor interest, with funding from Ribbit Capital and Pantera Capital, signaling confidence in its vision to embed blockchain into everyday communication and commerce via Telegram.

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Meta Acquires Voice Startup Play AI

Meta has acquired Play AI, a startup specializing in voice technology, to strengthen its portfolio of voice-powered products and services. Play AI’s advanced voice recognition and natural language processing technology will be integrated into Meta’s platforms, enhancing user interactions and creating more immersive experiences.

The acquisition reflects Meta’s ongoing investment in AI and its push to make voice-driven interfaces a core part of its digital ecosystem. By adding Play AI’s innovative capabilities, Meta aims to improve voice recognition accuracy and conversational AI features across its products, from social media to virtual reality.

This move also positions Meta to compete more effectively with other tech giants in the growing voice AI space, where companies are increasingly integrating voice technology into their products for improved user accessibility and engagement.

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Windsurf’s CEO Goes to Google, OpenAI’s Acquisition Falls Apart

Windsurf’s CEO has made a significant move to Google, while a planned acquisition by OpenAI has fallen through. The CEO’s transition to Google marks a shift in leadership within Windsurf, a company at the forefront of AI technology. Meanwhile, the collapse of OpenAI’s acquisition deal suggests challenges in aligning company goals and market strategies.

This development highlights the volatile nature of the tech industry, particularly in the fast-evolving AI space, where companies are constantly reassessing their acquisitions and partnerships. The failure of the OpenAI deal raises questions about strategic alignment and the complexities of navigating high-stakes negotiations in the tech world.

The movement of key executives between major tech players like Windsurf and Google underscores the competition for top talent and the broader dynamics in the AI industry, where leadership changes often influence the direction of innovation.

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