Samsung Electronics has welcomed a new trade agreement that reduces tariffs on South Korean imports to the U.S. from 25% to 15%, citing it as a key factor in reducing business uncertainty. The company expects this to reinforce its recent $16.5 billion chip supply deal with Tesla and bolster future chip orders.

Tesla Deal: $16.5 Billion Chip Supply Agreement

Samsung signed a $16.5 billion contract to supply AI chips to Tesla. The chips will be produced in Samsung’s upcoming semiconductor plant in Texas, scheduled to begin operations in 2026.

Financial Snapshot: Q2 2025

• Revenue: 74.6 trillion won

• Operating Profit: 4.7 trillion won

• Chip Division Profit: Down 94% YoY

Samsung’s chip business was affected by U.S. export restrictions on sales to China and delivery delays of high-bandwidth memory (HBM) chips to clients like Nvidia.

Future Outlook

• Samsung expects a recovery in H2 2025, driven by increased AI demand.

• Development of HBM4 chips is underway, with samples already sent to Nvidia and others.

Strategic Importance

The reduction in tariffs is seen as a significant benefit for Samsung’s global supply chain and its push to expand foundry services. The Tesla deal, in particular, is expected to strengthen Samsung’s position in the high-performance AI chip market.

Samsung continues to pursue growth in the AI and chipmaking sectors amidst evolving trade and tech regulations.

Roblox has raised its full-year 2025 bookings forecast following a significant boost in user engagement and viral game popularity. In its Q2 2025 earnings report, the company reported stronger-than-expected performance metrics.

Q2 2025 Highlights

• Bookings: $1.44 billion (vs. $1.24 billion expected)

• Daily Active Users (DAUs): 111.8 million (up 41% year-over-year)

• Engagement Hours: 27.4 billion hours (up 58%)

Viral Success: “Grow a Garden”

The standout title this quarter was “Grow a Garden”, a tycoon-style game that:

• Reached 21 billion visits since March

• Hit 22 million concurrent players in June

Full-Year Forecast Revision

• Previous guidance: $5.29 billion–$5.36 billion

• New forecast: $5.87 billion–$5.97 billion

The company also expects Q3 bookings to hit between $1.59 billion and $1.64 billion, exceeding analyst estimates.

Strategic Growth Factors

Roblox attributes this success to improvements in:

• In-game search and discovery

• Expansion of social, commerce, and ad formats

Market Reaction

Roblox stock surged 19% in pre-market trading, nearly doubling in value over the past year, signaling strong investor confidence.

Despite reporting a GAAP net loss, Roblox's bookings performance and user growth highlight its position as a dominant force in the gaming and immersive experience industry.

OpenAI has partnered with Norway's Aker ASA and UK-based Nscale Global Holdings to build a $1 billion artificial intelligence data center in Norway. The facility, located in Kvandal near Narvik in the Arctic Circle, will be the first of its kind in Europe for OpenAI.

Project Overview

The new facility, named Stargate Norway, is scheduled to be completed by late 2026 and is designed to support OpenAI’s future compute infrastructure needs. The project will begin with 230 megawatts (MW) of power and could scale up to nearly 520 MW. It aims to house up to 100,000 NVIDIA graphics processing units (GPUs).

Joint Venture Details

The project is a joint venture between Aker and Nscale, with each company contributing about $250 million in equity. The remaining cost will be financed through a combination of debt and customer prepayments. OpenAI will be a customer of the facility but is not an equity partner.

Energy and Sustainability

The facility will run entirely on renewable hydropower. It will feature direct-to-chip liquid cooling and recycle excess heat for local community use. Norway’s natural cooling environment is expected to reduce energy consumption.

Strategic Importance

The Stargate Norway project is part of OpenAI’s broader plan to create a network of advanced data centers known as "Stargates." The Norway site is the first to be announced publicly. The data center will provide services to customers in Norway and across Europe, including AI startups and research institutions.

Timeline

• Construction start: 2025

• Expected completion: Late 2026

• Initial deployment: 230 MW and 100,000 GPUs

This facility is part of a growing trend of placing AI infrastructure in regions with abundant renewable energy and favorable climate conditions.

Elon Musk’s AI company, xAI, has taken a bold regulatory stance by signing only the Safety and Security chapter of the European Union’s new voluntary AI Code of Practice, distancing itself from the more controversial Transparency and Copyright provisions.

A Strategic Partial Commitment

On July 31, 2025, xAI confirmed that it will align with the chapter focusing on risk mitigation and AI safety, as required under the upcoming EU AI Act. The law comes into effect on August 2 and targets general-purpose AI models like those developed by xAI. However, Musk’s company cited “profound harm to innovation” and “copyright overreach” as reasons for not endorsing the remaining sections.

“xAI supports AI safety and will be signing the EU AI Act’s Code of Practice Chapter on Safety and Security,” the company posted on X. “The other parts of the Code contain requirements that are profoundly detrimental to innovation.”

What the Code Covers

The EU’s AI Code of Practice includes three main chapters:

1. Safety and Security – Managing systemic risks, model misuse, and dual-use concerns.

2. Transparency – Requiring documentation of training methods, data sources, and model capabilities.

3. Copyright – Ensuring AI models respect intellectual property rights in training and deployment.

By signing only the first, xAI avoids obligations that would require greater visibility into its proprietary technologies.

Industry Divided

While Google has agreed to sign the full Code despite reservations, Meta has refused to sign any part of it. Microsoft’s decision is still pending. The split underscores the tech industry’s broader debate: How do we ensure AI safety without stifling innovation?

xAI’s decision suggests a middle path—supporting regulation where safety is at stake, but resisting what it views as excessive red tape.

Implications for the Future

xAI’s selective compliance reflects a wider challenge in global AI governance: balancing innovation with accountability. As the AI Act’s enforcement approaches, companies must decide whether partial compliance is sufficient—or whether full transparency and IP alignment are the cost of global trust.

With regulatory pressure growing worldwide, xAI’s move could set a precedent. Will others follow suit or embrace the full framework? One thing is certain: the future of AI won’t be built by technology alone—it will be shaped by the rules we set for it.

Sales of foreign-branded smartphones in China fell sharply in May 2025, with shipments dropping 9.7% year-over-year, according to data from the China Academy of Information and Communications Technology (CAICT). The total number of foreign phone units shipped was 4.54 million—down significantly from the same period last year.

Apple, the dominant foreign player in China’s smartphone market, was a major factor in the overall decline. Facing intensifying competition from domestic brands such as Huawei and Xiaomi, Apple responded with aggressive discounting strategies for its iPhone 16. On some e-commerce platforms, discounts reached as high as 2,530 yuan (about $351).

Despite these price cuts, consumer interest appears to be shifting further toward local brands, many of which have made significant technological advances and gained strong nationalistic support.

In a broader trend, overall mobile phone shipments in China fell 21.8% year-on-year, totaling just 23.72 million units in May. This indicates that both domestic and foreign brands are feeling the squeeze amid economic uncertainty, market saturation, and shifting consumer behavior.

The latest figures point to an increasingly challenging environment for foreign smartphone makers in China—once one of their most lucrative markets. Companies like Apple may have to rethink their long-term strategies to stay relevant in the face of rising domestic competition and evolving consumer expectations.

The European Commission has revealed that the long-awaited Code of Practice to help companies comply with its landmark AI Act has been delayed until late 2025, marking a six-month setback from the original May 2 deadline. This guidance, aimed at developers of general-purpose AI models like ChatGPT, Google Gemini, and Mistral, is voluntary—but signing it grants legal certainty, while non-signatories risk scrutinized compliance.

Despite industry calls from tech giants like Google, Meta, and European firms including ASML and Mistral for a delay, the European Commission remains determined to maintain the Act’s timeline. Officials emphasize the importance of establishing harmonized, risk-based rules to ensure AI safety across the EU market.

The AI Act, which sets tough transparency, bias testing, and safety obligations, is scheduled to begin enforcement for general-purpose models on August 2, 2025, with full enforcement powers in 2026. However, the failure to release the compliance guide ahead of this deadline has prompted appeals for a “clock stop”—a potential pause—on the act’s implementation.

This delay reflects broader tensions between regulatory ambition and industrial readiness. Dozens of Europe’s largest companies have warned that rushed compliance could stifle innovation and deter investment. They argue that smaller businesses, in particular, could struggle to meet complex obligations without clear guidelines.

Meanwhile, Big Tech firms continue to push back. Reports suggest they exerted influence during the Code drafting process, prompting concerns that the guidelines may be diluted in their favor. Yet EU officials insist the final Code will be comprehensive—and committed to be released before enforcement begins.

As the clock ticks toward August, all eyes are on Brussels. Will the delayed guidance offer the clarity firms need, or will it lead to widespread calls for enforcement to be paused?

Louis Vuitton Korea confirmed a systems breach in June that led to the leak of some customer contact data—including names and phone numbers—but reassured shoppers that no financial information was compromised. The luxury brand discovered the incident on Wednesday, immediately notified government authorities, and has since taken steps to contain the breach and strengthen its cybersecurity systems (reuters.com).

This incident comes amid a growing trend of cyberattacks targeting high-end brands in South Korea this year, including Dior, Tiffany, and Cartier—highlighting ongoing vulnerabilities in the retail sector (lokmattimes.com). While LV Korea has emphasized that no passwords, credit card numbers, or bank account details were involved (biz.chosun.com), the breach underscores the urgent need for stronger data protection standards, especially in luxury retail where customer trust is paramount.

In a groundbreaking development, IBM has unveiled its most powerful mainframe to date, the IBM z17, designed specifically for the AI-driven era. This cutting-edge system is poised to redefine the landscape of enterprise computing, enabling businesses to harness the full power of artificial intelligence (AI) while ensuring robust performance, scalability, and security.

AI-Optimized Architecture for Modern Workloads

The IBM z17 is powered by the new Telum II processor, which integrates an on-chip AI coprocessor, specifically engineered to handle the complex requirements of AI applications. This processor not only boosts the system's capability to process AI workloads but also significantly enhances its ability to perform AI inference operations. The z17 can process 50% more AI inference operations per day than its predecessor, the z16.

To further enhance its AI capabilities, the z17 supports the IBM Spyre Accelerator, a powerful PCIe card expected to be available in the latter part of 2025. This accelerator is designed to tackle unstructured data processing tasks, such as text-based generative AI, by offloading AI workloads from the mainframe. Organizations can scale their AI operations with ease by adding up to 48 of these accelerator cards.

A Strong Emphasis on Security

Security remains a cornerstone of IBM’s design philosophy, and the z17 is no exception. Built with AI-powered security features, it offers Sensitive Data Tagging and Threat Detection for z/OS, which utilize natural language processing to identify and protect sensitive data and detect potential security threats. These advancements ensure that the system can defend against emerging threats and vulnerabilities in real time.

Furthermore, the z17 is equipped with quantum-safe cryptography, ensuring that it remains secure even as quantum computing technology progresses. This forward-thinking approach positions the z17 as a future-proof solution for organizations that need to safeguard their data against potential quantum threats.

Seamless Integration with Hybrid Cloud Environments

One of the most exciting aspects of the IBM z17 is its ability to integrate seamlessly into hybrid cloud environments. The new z/OS 3.2 Operating System, set to be released later in 2025, will provide support for AI-accelerated workloads, enable easier data integration across cloud and on-premises systems, and allow businesses to modernize their mainframe applications.

In addition, the system will feature Watsonx Code Assistant for Z, a tool that helps developers modernize mainframe applications and optimize code for better performance. With this tool, businesses can streamline the modernization process and boost the efficiency of legacy applications.

Availability and Future Outlook

The IBM z17 will be available to customers starting on June 18, 2025. Alongside this, the Spyre Accelerator will be released in Q4 2025 to further boost the system's AI capabilities.

As organizations look to future-proof their IT infrastructure and embrace the power of artificial intelligence, the IBM z17 represents a significant step forward in the evolution of mainframe computing. With its AI-optimized architecture, enhanced security features, and hybrid cloud compatibility, the z17 is set to be a game-changer for businesses seeking to leverage AI and modernize their legacy systems.

For those interested in learning more about the IBM z17 and its capabilities, further details can be found on IBM’s official website.

This new mainframe promises to revolutionize the way businesses process data, handle AI workloads, and secure their infrastructure. As we move deeper into the AI era, innovations like the IBM z17 will undoubtedly play a key role in shaping the future of enterprise computing.

Isar Aerospace, a Munich-based private space startup, faced a setback as its Spectrum rocket crashed into the sea shortly after liftoff from Norway’s Andøya Space Center. The test launch, intended to showcase the rocket’s capabilities, was cut short due to a malfunction approximately 30 seconds after takeoff.

The Spectrum Rocket: Europe’s Hope for Independent Launches

The Spectrum rocket is designed to carry small and medium-sized satellites into orbit, marking a crucial step toward Europe’s goal of reducing reliance on external launch providers. Standing at 28 meters tall, it has a payload capacity of up to 1,000 kg for low Earth orbit (LEO). The rocket utilizes a fuel-efficient propane and liquid oxygen (LOX) engine system, making it a promising contender in the private space race.

What Went Wrong?

Despite favorable weather conditions at launch, the rocket unexpectedly veered off course, prompting the activation of the Flight Termination System. This safety mechanism destroyed the vehicle before it could pose any risk. While the test did not go as planned, Isar Aerospace remains optimistic, emphasizing that crucial flight data was collected to improve future launches.

A Step Forward for European Space Innovation

This mission was a major milestone for Europe's private space sector. Even with the failure, it demonstrates progress toward establishing independent launch capabilities. The data gathered from the flight will aid in refining future iterations of the Spectrum rocket as the company pushes forward with its ambitious plans.

Read more: CBS News

A coordinated protest movement against Tesla and its CEO, Elon Musk, has gained global momentum, with demonstrators gathering at more than 200 Tesla locations worldwide on March 29, 2025. The movement, dubbed "Tesla Takedown," seeks to challenge Musk’s growing influence in government policies, particularly his support for the controversial Department of Government Efficiency (DOGE). Protesters argue that DOGE’s policies have led to severe budget cuts and widespread layoffs, sparking public outrage. While organizers insist that the protests are intended to be peaceful demonstrations, authorities remain on high alert due to recent acts of vandalism targeting Tesla facilities. Law enforcement agencies, including the FBI, have launched investigations into incidents of arson and destruction of property, with some officials classifying them as domestic terrorism. Security has been heightened at Tesla locations, especially in California, where nearly 50 demonstrations are planned.

Elon Musk has taken a firm stance against the movement, condemning the protests and likening them to criminal acts. In a recent statement, he suggested that critics of Tesla are attempting to stifle innovation and economic growth. Musk also hinted at possible federal interventions to address the disruptions caused by the protests. The backlash has already had significant financial implications for Tesla, with its stock price plummeting by nearly a third since the beginning of the year. Investors worry that Musk’s political involvement and the ongoing controversy are harming the company’s public image and alienating consumers.

As the protests unfold, the world watches closely to see how Tesla and its leadership will navigate this period of heightened scrutiny. While the demonstrators voice their concerns over corporate influence and economic policies, the company faces mounting pressure to address these criticisms while maintaining its position as a leader in the electric vehicle market. The coming weeks will be crucial in determining whether the movement has a lasting impact on Tesla’s future and Musk’s standing in the corporate and political spheres.

Kenya is taking a bold step into the future of technology with the upcoming launch of its Artificial Intelligence (AI) Strategy for 2025–2030. This initiative, spearheaded by the Ministry of Information, Communications, and Digital Economy, aims to position Kenya as a leader in AI within Africa, driving innovation, job creation, and economic growth.

Why AI Matters for Kenya

AI has the potential to revolutionize multiple industries, from healthcare and agriculture to finance and education. By investing in AI, Kenya seeks to enhance efficiency, automate processes, and develop cutting-edge solutions to local and global challenges.

Government’s Vision for AI

The AI Strategy will focus on several key areas. Education and research will play a vital role in promoting AI education in universities and research institutions. Industry adoption will encourage businesses to integrate AI into their operations. Regulation and ethics will be a priority to develop policies ensuring responsible AI use. Startups and innovation hubs will receive support to foster AI-driven entrepreneurship and technological advancement.

Opportunities and Challenges

While AI presents numerous opportunities, challenges such as data privacy, cybersecurity, and accessibility must be addressed. The government aims to create a regulatory framework that ensures ethical AI use while maximizing its benefits. Businesses and individuals must also prepare for the rapid transformation AI will bring to the workforce and everyday life.

The Road Ahead

With the AI Strategy set to roll out, Kenya is on a path to becoming a technology powerhouse in Africa. Businesses, developers, and educational institutions are encouraged to embrace AI and contribute to this transformative journey. The coming years will determine how effectively Kenya can implement and benefit from AI advancements.

Stay updated on Kenya’s AI advancements at Bespado.co.ke.