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Spain's Prime Minister Pedro Sánchez has ordered prosecutors to investigate social media giants X, Meta, and TikTok for allegedly spreading AI-generated child sexual abuse material. The move escalates Europe's regulatory battle with American tech companies, with Spain joining France, Denmark, and Australia in proposing to ban social media for children under 16.
Ireland's Data Protection Commission has launched a large-scale EU privacy investigation into X Grok AI over non-consensual deepfake images. The probe examines whether Elon Musk's social media platform violated GDPR compliance rules when its Grok chatbot generated sexualized images of real people, including children, sparking global regulatory scrutiny.
Munich-based Sitegeist has secured €4m in pre-seed funding to deploy AI-enabled robots that automate concrete renovation. The German start-up's modular robots can remove deteriorated concrete up to ten times faster than manual labor, addressing Europe's infrastructure backlog and labor shortages across bridges, tunnels and public buildings.
Amsterdam-based Nebius is constructing a massive 240-megawatt data centre near Lille, France, transforming a former Bridgestone tyre plant into one of Europe's largest AI infrastructure facilities. The project will begin delivering capacity by late summer 2025, with half the site operational by end of 2026, as European companies increasingly adopt AI tools.
French AI startup Mistral is investing 1.2 billion euros ($1.4 billion) in new data centers in Sweden, marking its first infrastructure investment outside France. The move signals a major step toward building independent AI capabilities in Europe as the continent races to establish tech sovereignty and reduce reliance on U.S. competitors like OpenAI.
The European Publishers Council has filed a formal antitrust complaint with the European Commission against Google, alleging the tech giant abuses its dominant market position by using journalistic content without authorization in its AI Overviews and AI Mode features. Publishers report traffic declines exceeding 30% for affected queries, with some seeing click-through reductions over 50%, as Google transforms from a referral service into an answer engine that retains users within its ecosystem.
Square has launched Square AI in the UK and Ireland, a free conversational AI assistant integrated into its commerce platform. The tool addresses a critical gap: while 53% of UK SMEs have experimented with AI, only 30% use it regularly. Square AI enables business owners to query sales, customer, and labour data in plain language, helping them combine instinct with insight without manual analysis.
The European Commission has accused Meta of violating EU competition rules by blocking third-party AI assistants like ChatGPT and Copilot from WhatsApp. Brussels is considering emergency interim measures to force the tech giant to restore competitor access while its antitrust investigation continues, warning that Meta's policy could cause serious and irreparable harm to the AI assistant market.
Danish apps designed to help consumers boycott US goods experienced explosive growth during the Greenland diplomatic crisis. Made O'Meter saw 30,000 downloads in three days while NonUSA topped 100,000 downloads, reflecting how geopolitical tensions can rapidly reshape consumer behavior and accelerate adoption of AI-powered shopping tools across Europe.
At a military AI summit in Spain, only 35 of 85 attending nations signed a declaration on governing AI use in warfare, with the US and China notably absent. The non-binding agreement outlines 20 principles including human oversight over AI-powered weapons, but global tensions and a strategic prisoner's dilemma kept major powers from committing.
European Central Bank President Christine Lagarde acknowledged that AI investment is fueling a surge in private-sector spending across the euro zone, particularly in information communication technology and data center infrastructure. However, she cautioned that realizing meaningful productivity gains from this AI-driven spending will require patience as the region navigates how artificial intelligence impacts both economic growth and inflation.
Deutsche Telekom, Nvidia, and SAP have launched one of Europe's largest AI computing facilities in Munich. The €1 billion Industrial AI Cloud aims to reduce European dependence on foreign digital infrastructure while boosting Germany's AI computing power by 50%. The facility operates at 30% capacity and represents the first step toward building AI gigafactories across Europe.
Palantir CEO Alex Karp delivered a stark warning about a widening global divide in AI adoption during the company's earnings call. With US revenue growing 93% year-over-year and accounting for 77% of total revenue, Karp criticized Europe and Canada for their hesitance to adopt advanced AI products. He framed the split as a battle between 'AI haves and have-nots,' echoing concerns raised at Davos about the risks of falling behind in the technology race.
French authorities raided X's Paris office and summoned Elon Musk for questioning as part of a yearlong investigation into illegal content. The probe recently expanded to include allegations that the Grok chatbot disseminated Holocaust denial claims and sexually explicit deepfakes, including child abuse imagery. Prosecutors are investigating multiple potential crimes, including complicity in distribution of child pornography and privacy violations.
Anthropic unveiled new AI automation tools that sent shockwaves through global markets. European legal software firms RELX and Wolters Kluwer plunged over 10%, while Indian IT exporters saw their worst day since 2020 with a 6.3% drop. The tools automate legal work, sales, and data analysis, raising fears about the future of labor-intensive business models.
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