AI mission takes off: Chip & model plans on board

Proposals for model development will be invited soon. At least six startups and developers that can do it within the next 10 months have been identified, he said. ET was first to report on January 23 that India will back indigenous foundational models.

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‘Budget champ India can pull another DeepSeek on global AI': Vishal Sikka

Vishal Sikka, former CTO of SAP and CEO of Infosys, in an exclusive interview with ET, urges India to actively participate in the AI race, not just build applications but also develop foundational and sovereign models. He emphasizes the importance of local data and languages, citing DeepSeek's cost-effective approach. Sikka highlights AI's current limitations, particularly energy inefficiency, while acknowledging India's resource-constrained innovation capabilities.

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French privacy watchdog to quiz DeepSeek on AI and data protection risks

DeepSeek will be questioned to check accuracy and examine possible risks to users' privacy.

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Footwear startup CHK raises $2.5 million from Accel, Bluestone, others

DealShare cofounder Sankar Bora’s company, based in Bengaluru, will deploy the funds to boost output and bolster R&D in the run-up to its public launch in April.

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Tata Electronics goes tech talent fishing in Intel pool

Tata Electronics, on an expansion spree, is aggressively hiring senior talent, particularly from Intel. Former Intel executives like Reda Masarwa and Randhir Thakur (now Tata Electronics CEO) are leading this charge. The company aims to build a strong team for its ambitious projects, including new factories and semiconductor manufacturing facilities.

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Sam Altman faces backlash as old video resurfaces amid DeepSeek’s rise

The clip, recorded during an Economic Times Conversations event in June 2023, features Altman responding to a question about the feasibility of creating a substantial AI model with limited resources.

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Rupee and dollar movement to keep IT margins on edge

The rupee's recent depreciation against the US dollar has boosted Indian IT companies' profitability in Q3 2024. However, the unpredictable movement of other currencies like the euro and pound, coupled with rising operational costs and visa challenges, pose significant risks. While a weaker rupee offers short-term gains, it also complicates hedging strategies and long-term planning.

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DeepSeek says its Janus Pro AI model beats rivals in image generation

The new model is an upgrade over Janus, which was launched late last year and comes on the heels of DeepSeek launching a new assistant based on the DeepSeek-V3 model that has become the top-rated free application on Apple's App Store in the United States.

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ETtech Top 5: Top tech and startup stories of the day

Here are top 5 tech and startup stories of the day

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Indian defence, space startups eye US market

The startups from the domains of space, remote sensing and other critical technology are invited to participate in the India to America (I2A) Launchpad programme to seize an opportunity to build partnerships, contracts, and funding that can shape their next few years.

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Google pushes global agenda to educate workers, lawmakers on AI

As Google races to best Big Tech rivals including Microsoft-backed OpenAI and Meta in the AI arena, it is mindful of the heavy regulatory scrutiny it faces in its existing businesses in advertising and search.

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Conflict of generations: Bridging generational gap in workforce

Tech companies are addressing the generational gap in the workforce, as offices now feature Baby Boomers, Gen X, Millennials, and Gen Z. Companies like Infosys, Capgemini, and Mphasis are implementing strategies such as mentorship programmes and reverse mentoring to foster communication and collaboration. These efforts aim to boost innovation, employee engagement, and retention.

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Meta tests ads on Threads, its alternative to X

Facebook's parent company, Meta, is testing ads on its new social network, Threads. The ads debut amid Meta's recent content moderation changes and the end of its US fact-checking program. With TikTok's uncertain future, Meta is poised to attract brands seeking alternatives, though user reactions may be mixed.

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Top startup and tech stories this week

Welcome to a new edition of ETtech Unwrapped – our weekend newsletter packed with the most important stories this week. Let’s take a look.

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Meet ‘Operator’, a web-enabled AI agent that performs tasks for You

OpenAI's Operator is an AI agent that automates web tasks like ordering food, scheduling appointments, and creating memes. It uses GPT-4o and reinforcement learning to understand and interact with websites, improving user productivity. Currently in research preview for US Pro users, Operator will expand to other user tiers and regions soon.

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FinMin wants banks to complete I4C integration by January to check frauds

The finance ministry wants government-owned banks, including the State Bank of India, to integrate directly with the Indian Cybercrime Coordination Centre (I4C) to control the growing problem of financial fraud.

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Trump says US needs double the energy it has to power AI

Trump said he would give emergency declarations to allow companies working on AI to start building plants "almost immediately" given intensive competition with China.

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Trump tells Davos: make your products in America or pay tariffs

US President Donald Trump told world business leaders Thursday to manufacture in the United States or face tariffs, in his first major speech to global leaders since returning to the White House this week. He has also signed a flurry of executive orders, pulling the United States out of the Paris Climate Accords and the World Health Organisation.

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Meta backs data analytics firm Databricks as AI boom attracts investors

Companies, including Meta, have been investing heavily to build and train large language models (LLMs) such as ChatGPT, which are advanced AI systems designed to understand and generate human-like text.

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Sam Altman vs Elon Musk: OpenAI CEO dismisses Musk's claims about Stargate AI project having 'no money'

Musk had said earlier that the Stargate Project, an initiative to build AI infrastructure across the US, with Masayoshi Son taking the role of chairman, doesn't have funds.

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DeHaat acquires farm advisory platform AgriCentral

AgriCentral, serving over 10 million smallholder farmers, will help DeHaat enhance its digital services and broaden its reach. This acquisition brings DeHaat’s total to seven businesses, including Vezamart, Farmguide, Helicrofter, YCook, FieldFresh Foods, and Freshtrop Fruits. DeHaat offers farmers direct market access, quality inputs, expert agricultural advisory along with exports.

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Trump to announce up to $500 billion private sector AI infrastructure investment, sources say

OpenAI, SoftBank and Oracle are planning a joint venture called Stargate, the report added, saying SoftBank CEO Masayoshi Son, OpenAI's Sam Altman and Oracle's Larry Ellison are due at the White House later on Tuesday.

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Aakash’s backers slam AoA tweak plan at NCLT

Senior advocate Darius Khambata, representing the minority shareholders, said that these articles are legally binding and would take precedence over any agreement between the shareholders.

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GCCs may align pay almost at par with IT companies to optimise costs

Sluggish hiring activity in the IT services sector has seen a cooling down in the talent competition over the past six quarters, causing a 30-40% moderation of the premium value paid by GCCs, said Kedar Pathak, GCC specialist, Xpheno. Certain mid-senior level tech roles, where 16-20% premium pay were in play, have moderated to 10-12% premiums, he said.

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Edtech firm Brightchamps buys K12 marketplace Edjust

With this buyout, GSV Ventures-backed Brightchamps has acquired four companies, including Education10x, a financial literacy education platform for children, in 2021; Schola, a live learning platform for kids, in 2022; and Metamorphosis Edu, which trains students in skills linked to entrepreneurship, in 2023.

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TikTok restores service, thanks Donald Trump

TikTok is restoring its service in the U.S. after President-elect Trump said he would revive the app's access once he takes office. U.S. users had reported issues as the app faced a national security-related shutdown. Trump plans to extend the prohibition period to work on a deal and seeks partial U.S. ownership in a joint venture.

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Trump says he 'most likely' will give TikTok 90-day extension to avoid US ban

Under the law passed by Congress and signed by President Joe Biden last year, TikTok's China-based parent company had nine months to sell the platform's US operation to an approved buyer. The law allows the sitting president to grant an extension if a sale is in progress.

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‘Space exploration is like going to Olympics’: Shrinivas Kulkarni

Shrinivas Kulkarni, Shaw Prize winner and a professor at Caltech, talks on the importance of thorough analysis and strategic choices in India’s space endeavours. He compared India’s space efforts to participating in the Olympics, describing it as an “expensive game.” Kulkarni also added that India’s space capabilities are not yet comparable to those of China and the US.

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Sun, moon and the starts: India's space startups ready for 2025

Sky is the limit for Indian space startups in 2025, as they focus on attracting more funding, tap global markets and drive more real-time applications. Indian space startups are optimistic about the revised foreign direct investment (FDI) policy, which aims to unlock more capital for growth. Yashas Karanam, cofounder of Bellatrix Aerospace, said the revised FDI norms clarify exit strategies, allowing investors to freely sell shares and thus attract international funding.

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Fintechs shun quick credit as RBI cracks down on unsecured loans

The advance salary product was designed for working professionals to take an instant personal loan for about a month, similar to a salary advance. It allowed employees to receive an amount equivalent to half their salary mid-month, and to repay it once the salary is credited.

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Elon Musk hosts Indian entrepreneurs at Texas SpaceX facility

The gathering, led by India Global Forum (IGF) founder Manoj Ladwa, included entrepreneurs engaging with Musk. The delegates also toured the Starbase facility, where they saw the successful launch and booster catch of SpaceX’s Starship Flight 7.

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Battery makers are charging up; Amazon to acquire Axio

Two major battery manufacturers have plans to set up plants in India. This and more in today’s ETtech Morning Dispatch.

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LGES, Panasonic Energy rev up India battery plant plans

LG Energy Solution (LGES) and Panasonic Energy, two of the largest battery manufacturers globally, are accelerating their plans to set up production facilities in India. LGES supplies EV batteries to Tesla, General Motors, Hyundai, and Indian e-scooter makers like Ola Electric and TVS Motor, while Panasonic Energy is among Tesla’s largest suppliers of batteries.

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Oracle’s four India partners may fail to make AI mission cut

This may hinder the American cloud company's ability to empanel with the much-coveted Mission to offer AI compute capacity in India through public-private partnership and bid for future projects.

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Zepto's annualised GOV touches $3 billion, up three times in 8 months

GOV is the total value of orders received over a certain period of time, including the total amount of sales, before any discounts, returns, or cancellations.​​

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Consumer brands’ funding ride keeps deal street busy

Venture funds are sitting on ample dry powder and will accelerate deal-making in early-stage startups. Funds like Accel, 3One4 Capital, Peak XV Partner, Lightspeed Venture Partners and others are on the hunt for new deals across sectors and themes.

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Aditya Birla-backed Digantara takes flight onboard SpaceX’s rocket, system to monitor and detect objects

Digantara launched its SCOT satellite aboard SpaceX’s Transporter-12 mission to enhance space safety and track Resident Space Objects (RSOs). The world’s first commercial Space Situational Awareness (SSA) satellite, will monitor Low Earth Orbit (LEO) with improved efficiency. Backed by Aditya Birla Ventures and SIDBI, it aims to support national security and space operations.

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HCLTech will focus on GenAI-led solutions on client demand: CEO C Vijayakumar

IT services major HCLTech is changing its strategic direction towards generative artificial intelligence (GenAI) amid a revival in client demand, chief executive and managing director C Vijayakumar told ET.

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Electric two-wheeler startup BGauss raises Rs 161 crore from Bharat Value Fund

The funds will be used to expand the Pune-based company’s presence in India and overseas, meet capital expenditure requirements, marketing, and enhance in-house R&D for upcoming product launches. BGauss, which has raised Rs 161 crore from Bharat Value Fund, aims to scale its dealership network and manufacturing capacity as demand increases.

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Ahead of IPOs, new-age firms look to fill leadership roles in critical areas

Companies including Captain Fresh, Lenskart, Flipkart, Zetwerk, InCred, Infra.market, Physics Wallah and DevX that are eyeing a public listing in the near or medium term have hired or plan to hire experienced executives in areas such as finance, operations, business, legal, compliance, HR, product, operations, audit and investor relations.

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Flipkart may lead $35-40 million round in its Super.money

Super.money, started by Flipkart senior executive Prakash Sikaria, is among the big focus areas at Flipkart for its financial services and lending business and has emerged as one of the fastest growing Unified Payments Interface (UPI) apps.

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Apple wants to keep diversity programs disavowed by other US firms

Apple's board of directors has recommended shareholders vote against a proposal to end the company's diversity, equity and inclusion (DEI) programs, going against the grain of decisions by other large US corporates. But the Apple board has recommended voting against the proposal when it meets late this month.

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The very long wait for Jeff Bezos' big rocket is coming to an end

New Glenn built by Blue Origin is larger than SpaceX's current workhorse rocket, the Falcon 9, but not as big as Starship, the fully reusable rocket system that SpaceX is currently developing. Blue Origin is also working on a future private space station called Orbital Reef, a lunar lander for NASA called Blue Moon and a space tug called Blue Ring -- a vehicle that could move satellites around in Earth orbit.

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Tech sector's energy transition draws attention at Vegas show

Data centers accounted for 4.4% of US electricity needs in 2023, which is likely to rise to 12 percent by 2028, according to the US Department of Energy. Gary Shapiro, chief executive of the Consumer Technology Association, which organises CES, said energy transition was intended to be "a big focus" of this year's show.

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Hyperscale data centres promise to transform computing in the age of AI

Traditional data centres function like shared office spaces, providing limited resources to multiple businesses. In contrast, hyperscale data centres are large-scale facilities built to support the immense computing needs of tech enterprises. Hyperscale data centres are built for rapid scalability, allowing them to swiftly add or remove servers and storage to accommodate fluctuating demands without disrupting services.

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President Biden blasts 'shameful' Meta decision to scrap US fact-checking

US President Joe Biden criticised Meta for ending fact-checking on Facebook and Instagram in the US. He called it shameful. Meta's decision aims to turn fact-checking over to users with Community Notes. The International Fact-Checking Network warned of global harm if Meta expands this policy. Meta's decision comes as President-elect Trump prepares to take office.

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Top startup and tech stories this week

Welcome to a new edition of ETtech Unwrapped – our weekend newsletter packed with the most important stories this week. Let’s take a look.

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Meta policy reversal puts question mark on future of fact-checking

Media outlets face uncertainty as Meta halts its US fact-checking program, ending a critical revenue stream for many organisations. Meta's move, citing political bias, sparks concern for fact-checking's future and its impact on combating disinformation globally. Critics fear this decision could permit unchecked false information proliferation.

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Meta’s fact-checking decision sets off alarm bells in India

The decision will hurt social media users looking for accurate, reliable information to make decisions about their everyday lives and interactions with friends and family, Angie Drobnic Holan, the director of International Fact-Checking Network said in a post on LinkedIn.

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Spacecrafts put in a slow drift for docking: ISRO on SpaDex mission

ISRO's SpaDeX mission, which validates in-space docking technology with two small spacecraft, has been rescheduled for January 10 due to unexpected satellite drift. Initially set for January 7 and subsequently postponed, this indigenous mission aligns with PM Modi's Aatmanirbhar Bharat vision, showcasing India's advancements in space tech.

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Fintech startup AtoB to open Bengaluru R&D centre, expand global footprint

Founded in 2019, AtoB sees major opportunity in modernising payments for the $1 trillion commercial fuel and transportation industry, particularly trucking. It partners not only truckers and small businesses but major banks as well as oil and gas companies, building a digital infrastructure to bring them together, cofounder and CEO Vignan Velivela said.

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D2C beauty company Wow seeks strategic buyer at a lower $250 million valuation

Wow Skin Science, valued at around $400 million, is seeking a strategic buyer at a reduced valuation of $250 million as investors look to exit. The brand faces slowing growth amid tough competition in India's D2C beauty market, sparking industry consolidation with other brands exploring similar options.

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Trump announces $20 billion investment in US data centres

President-elect Donald Trump announced a $20 billion investment to build data centres across the US, backed by Emirati billionaire Hussain Sajwani, chairman of DAMAC Properties. This investment supports the rapid establishment of data centres critical for generative AI applications, aligning with similar initiatives from major tech companies, like Microsoft's $80 billion AI capacity expansion.

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No breakthrough AI offerings yet from Indian startups

Kailash Nadh, CTO at Zerodha, tells ET why Indian startups are yet to deliver any big breakthroughs in the global GenAI technology race. hile many Indian startups have launched AI-enabled offerings, “if they’ll have moats or USPs (unique selling propositions) to offer, it remains to be seen,” he said.

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Entrepreneurial dreams powered by AI

Scores of Indian startups are building AI-driven tools and solutions to solve real-life problems. ET delves deep into these ventures figuring out the excitement as well as the challenges.

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New-age companies end year of reckoning with stronger business, better bottomline

More than two dozen startups in India improved their financial performance in FY24 with a combined revenue of over Rs 500 crore. Startups like Purplle, Porter, Lenskart and PhonePe achieved growth and better margins while others focused on reducing losses. The trend emphasises healthier business practices as funding remained tight.

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Currency tailwinds may help IT companies shake off seasonal December blues

India's technology outsourcing industry is expected to improve in the December quarter due to currency benefits. However, caution remains as the industry recovers from previous stagnation. Leading companies like TCS, HCLTech, Infosys, Wipro, and others will present their earnings soon. Analysts will focus on management commentary, future IT budgets, and demand outlook for 2025.

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Health, fitness products fly off the shelves at D2C, quick commerce

D2C brands and quick commerce platforms are experiencing a surge in demand for health and fitness products as consumers focus on fitness and personal wellbeing. Companies like Healthify and Boldfit report significant revenue increases, and fitness wearables and protein-based items see heightened sales, particularly in Tier II and Tier III cities.

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Experts wary of data panel curveball on Big Tech, social firms

Legal experts are worried about proposed rules that could restrict sending personal data abroad. The Indian government assures the new data rules do not require data localisation. However, compliance costs and potential trade barriers are concerns. Age-gating using school databases is commended but poses challenges. Parental consent requirements for children under 18 could affect social media and gaming companies.

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Jeff Bezos's Blue Origin poised for first orbital launch next week

The NG-1 mission will carry a prototype of Blue Ring, a Defense Department-funded spacecraft envisioned as a versatile satellite deployment platform, which will remain on board the rocket's second stage for the six-hour test flight. It will mark Blue Origin's long-awaited entry into the lucrative orbital launch market after years of suborbital flights with its smaller New Shepard rocket, which carries passengers and payloads on brief trips to the edge of space.

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Special agents: The future of AI and automation

Tech giants are moving fast to develop and deploy AI agents, which are pegged to be the “next big thing” in 2025. They gobeyond the limited capabilities of LLMs and offer more end-to-end, action-based solutions. Agent frameworks can reason, plan, and execute, driving the convergence of automation and GenAI to create autonomous systems for complex business tasks.

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Top startup and tech stories this week

Welcome to a new edition of ETtech Unwrapped – our weekend newsletter packed with the most important stories this week. Let’s take a look.

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Zepto plans IPO filing by March-April; Singapore nod in for moving domicile

Zepto is preparing to file for an IPO by March-April 2025 and has received approval to move its holding entity from Singapore to India. The company is also finalising independent directors and deliberating on IPO size and bankers. It aims to become the first independent quick commerce firm to go public amid scrutiny over local FDI compliance.

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US sanctions Beijing-based cyber group for its alleged role in hacking incidents

The US Treasury has sanctioned Beijing-based Integrity Technology Group, Inc. for multiple hacking incidents targeting US critical infrastructure, including the Chinese state-sponsored Flax Typhoon campaign. The sanctions block access to US property and bank accounts, preventing business with Americans, as part of efforts to disrupt cyber threats.

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Draft Data Protection Rules mandate due diligence, explicit consent for processing children data

The government released draft Digital Personal Data Protection Rules requiring verifiable parental consent for children creating accounts on digital platforms. The rules mandate data fiduciaries to ensure data processing with consent and detail procedures for managing data breaches, consent management, and security practices, aiming to enhance data protection and compliance.

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IndiaAI mission to offer GPU resources to second EoI participants: COO Kavita Bhatia

AI Research Analytics and Knowledge Dissemination Platform, is India's largest and fastest AI supercomputer. “We’re also in the process of bringing more than 10,000 GPUs as and when it comes up. Even that can be made available based on the eligibility criteria and certain other conditions that need to be fulfilled so that you can get access to the compute,” Kavita Bhatia, COO of IndiaAI mission under the ministry of electronics and IT (Meity), told potential participants on Thursday.

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Elon Musk changes name on X on Tuesday; reverts to original name today

Elon Musk changed his name on X back to his original name from 'Kekius Maximus' after a Tesla Cybertruck explosion outside the Trump International Hotel in Las Vegas. The incident, treated as potential terrorism, left one person dead and seven injured. The Cybertruck had fireworks and fuel canisters in its trunk.

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AP government eyes top talent for investment promotion body

N Chandrababu Naidu's return as Andhra Pradesh's CM has sparked renewed competition among southern states to attract investment. The state is reviving its Economic Development Board, actively hiring professionals for various roles to enhance investment promotion. This move aims to re-establish Andhra Pradesh as a key destination for large-scale investments despite its current challenges.

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Quick commerce companies quizzed by government over FDI, operating model

Senior executives from Blinkit, Swiggy Instamart, Zepto, and Bigbasket met with Indian government officials. They discussed warehouse ownership, compliance with FDI norms, and the impact on kirana stores. The officials expressed concerns about delivery safety and competition for small shops. Representatives argued their services supplement demand. Quick commerce firms are growing rapidly and raising capital.

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Year Ender 2024: Debate on work-life balance prompts a myriad of views

As 2024 ends, India's work-life balance debate intensifies, with notable figures advocating varying viewpoints. Narayana Murthy encourages 70-hour workweeks for national progress, while Rishad Premji promotes hybrid models. Controversial opinions from leaders like Aadit Palicha, Anupam Mittal, and Namita Thapar highlight the discourse's complexity.

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