Category: Communications

The Trump administration’s threat of massive new tariffs has sent Apple Inc.’s share price plummeting, but it also brought a short-term benefit: customers rushing to retail stores to buy iPhones.

Employees from different Apple locations across the country said stores filled with customers over the weekend — with the shoppers expressing concerns that prices will climb dramatically after the levies are imposed. Most iPhones, Apple’s best-selling and most important product, are manufactured in China, which is in line for tariffs of 54%.

One employee said their store was slammed with people panic-buying phones: “Almost every customer asked me if prices were going to go up soon,” said the worker, who asked not to be identified because they weren’t authorized to speak publicly.

Though stores didn’t necessarily see the kind of lines that come with an iPhone launch, the atmosphere was like the busy holiday season, employees said. “People are just rushing in worried and asking questions,” one said, adding that the company hasn’t provided guidance to stores on how to handle such inquiries.

The frenzy has translated to more purchases. Apple’s US retail stores saw higher sales over this past weekend than in prior years in at least some major markets, according to a person with knowledge of the matter. An Apple spokesperson declined to comment.

Apple will report its fiscal second-quarter results on May 1, giving Chief Executive Officer Tim Cook and Chief Financial Officer Kevan Parekh an opportunity to discuss the effect of expected tariffs. During the holiday-quarter conference call, Cook said the company was assessing the impact but wouldn’t comment further.

The stock market’s tariff meltdown has hit Apple especially hard. The company’s valuation fell by more than half a trillion dollars in the final two trading days of last week, and the stock suffered its worst three-day rout since the aftermath of the dot-com bubble in 2001.

The company has been taking steps to prepare for the tariffs, including stocking up on inventory. In a bid to reduce the toll moving forward, Apple is steering more devices made in India to the US market, Bloomberg News has reported. The country is currently set to be taxed at a lower level than China.

Apple also has spent years shifting more of its production to Vietnam, which will have a slimmer tariff than China. The company has manufactured Apple Watches, Macs, AirPods and iPads in that country. It also produces some Mac models in Ireland, Thailand and Malaysia.

Apple’s flagship retail store on Fifth Avenue in New York was busy Monday afternoon. Ambar De Elia, a Buenos Aires native, is visiting New York and was already planning to get an iPhone 15 for her younger sister. But when she woke up this morning and saw the news about Wall Street, she thought now was the best time to splurge.

Analysts and industry watchers have been trying to gauge the impact of a 54% China tariff on prices, with some speculating that iPhones could soon cost thousands of dollars apiece.

In reality, Apple is likely to take a number of steps — including squeezing its suppliers and putting up with lower margins — to keep prices from soaring, Bloomberg News has reported. Apple’s latest flagship iPhone currently starts at $999 — a level that has remained constant since 2017.

“I think everyone is here because of the fear, they don’t know what’s going to happen,” De Elia said. “If we have the possibility to buy something at a lower price of course we are going to.”

One employee at the store said he wouldn’t be surprised to see the rush continue at stores over the next few days. Another worker noted that this is typically considered the off-peak season — new iPhones are released in September — but many customers are upgrading now.

The surge could help bolster results in Apple’s third quarter, which runs through June. Since the company is selling the inventory it already accumulated, the impact from tariffs won’t likely be felt until the following quarter. Bloomberg

India’s tech hardware sector is set to gain a competitive edge as the US imposes tariffs on electronics imports from key countries. According to a recent report by CLSA, the shift in the global supply chain could favour India, particularly in the smartphone manufacturing segment.

The US has implemented tariffs ranging from 25% to 54% on electronics imports from China, Mexico, and Vietnam, which together account for 51% of US electronics imports. Smartphones account for $51 billion worth of imports for the US, with China, Vietnam and India being key sources, CLSA said.

Prominent smartphone brands like Apple, Samsung, and Motorola already have assembly operations in India. With China facing a 34% tariff and Vietnam 46%, India’s relatively lower tariff of 26% may shift supply chain dynamics, according to the brokerage.

India’s lower tariff, combined with its large domestic market and increasing backward integration supported by the Production Linked Incentive scheme, enhances its cost competitiveness, it said.

Dixon Technologies is likely to be a key beneficiary of this shift. The company has established relationships with major brands such as Motorola, Google, and Nokia. While Apple and Samsung’s assembly operations are either in-house or with companies not listed in India, Dixon’s role in the supply chain is expected to grow, CLSA said.

Despite the positive outlook, there are potential risks. A rise in production in Brazil, which faces a lower tariff of 10%, could alter the competitive landscape. Additionally, bilateral trade agreements, such as Vietnam’s offer to remove all tariffs on US imports, could impact India’s advantage, the brokerage said. NDTV Profit

India’s telecom and agriculture sectors have been significantly impacted by the tariffs imposed by US President Donald Trump.

The telecom industry has seen a dramatic increase in tariffs, which have risen from 0% to 26% as of April 9, 2025. Despite this hike, India’s telecom exports to the US, which total USD 6 billion, remain competitive, especially when compared to China and Vietnam, who are facing even higher tariffs.

The report suggests that initiatives such as Mission 500 and accelerating the Bilateral Trade Agreement (BTA) with the US could help the sector navigate these challenges. It also recommends extending the Production Linked Incentive (PLI) scheme beyond 2026 to sustain growth in the telecom sector.

Similarly, the agriculture sector has experienced a significant tariff increase from 4% to 31%, which directly affects USD 5.5 billion worth of Indian agricultural exports to the US. This tariff surge presents a major challenge to the sector’s competitiveness. However, the report notes that India still holds a competitive advantage over countries like China and Vietnam, maintaining its position in global trade despite the tariff rise.

While India fares better than some of its peers, it still lags behind countries like Canada, Mexico, and others in Latin America that enjoy lower tariffs and higher market shares.

EY suggests that the Indian government should prioritise finalising the US-India BTA, given agriculture’s importance to the economy.

The auto components sector is also under pressure. Exports worth USD 2.1 billion to the US will now face 25 per cent tariffs, up from earlier 2.5 per cent.

The hike affects crucial components such as engines, transmissions, and powertrains. Since the 25 per cent duty applies uniformly to all countries, India is not given any special advantage over others like China. The report called for the government to push for concessional tariffs in trade negotiations.

The textile sector, which has exports of USD 9.5 billion to the US, will now be subject to tariffs ranging between 33 per cent and 36 per cent. Although these rates are a significant increase, by about 27 per cent — India still enjoys a relative advantage, as rival exporters like China, Vietnam, and Bangladesh are facing even higher tariffs.

The report concluded that while the higher US tariffs pose a serious challenge to India’s export-driven sectors, India’s manufacturing strength and strategic policies can help retain a competitive edge. Swift progress on bilateral trade agreements and policy support will be key to ensure continued growth. Mathrubhumi

The top Democrat on the Senate Intelligence Committee said on Monday that US President Donald Trump’s decision to extend a deadline for China-based ByteDance to divest short video app TikTok’s US assets violates the law.

Senator Mark Warner also said the reported likely deal under consideration would not meet legal requirements for eliminating ByteDance’s influence over TikTok’s US operations under a 2024 law.

The reported deal “would preserve a material, operational role for ByteDance by not only allowing it to retain a significant equity stake in the divested entity, but also an active role in technology development and maintenance”, he said.

Trump on Friday said he extended by 75 days a deadline for ByteDance to sell US assets of the popular short video app to a non-Chinese buyer, or face a ban that was supposed to have taken effect in January under a 2024 law.

The White House and TikTok did not immediately comment on Monday.

The deal would spin off TikTok’s US operations into a new company based in the US and majority-owned and operated by US investors. The plan entails spinning off a US entity for TikTok and diluting Chinese ownership, sources have said.

“Any qualified divestiture must ensure a clean operational break from ByteDance and TikTok USA, including by preventing either company from continuing to develop, influence, or access personal data or source code,” Warner said.

Warner said the “deal being discussed undermines confidence that the divested app can be trusted to protect national security and ensure compliance with the law”.

Trump has said his administration was in touch with four different groups about a prospective TikTok deal.

A major stumbling block to any deal for TikTok’s US business is Chinese government approval. China has not publicly agreed to support a sale and Trump’s comments on Friday suggested renewed Chinese opposition.

Some lawmakers have said Trump must enforce the law, which had required TikTok to stop operating by January 19 unless ByteDance had completed a divestiture of the app’s US assets. Trump began his second term as president on January 20 and opted not to enforce it.

The Justice Department in January told Apple and Google that it would not enforce the law, which led them to restore the app for new downloads. South China Morning Post

Megacap US tech companies including Apple and retail giants Walmart and Nike led a global market meltdown as President Donald Trump’s sweeping new tariffs heightened fears of a spike in costs across a wide range of industries.

The tariffs, which threaten to destabilize the world trade order and unsettle businesses, mark a sharp reversal from just a few months ago when hopes of business-friendly policies under the Trump administration pushed U.S. stocks to record highs.

Trump said he would impose a 10% baseline tariff on all U.S. imports along with higher duties on dozens of other countries, pushing U.S. tariffs to the highest in more than a century according to Fitch Ratings.

Analysts and economists warned that hefty tariffs on imports from Asian manufacturing hubs and potential retaliatory measures could rattle global supply chains, dent corporate profit margins and significantly raise recession risks.

Ken Mahoney, CEO of Mahoney Asset Management in Montvale, New Jersey, said some pre-announcements can be expected this earnings season. “What guidance can a company really give in this scenario when things are looking so dire?”

“Even before tariffs were actually set in stone, we heard from companies like Walmart and Delta, for example, … that they were already seeing a slowdown as the tariff talk just started so we can only imagine what they are going to say now,” he said.

The Dow Jones Industrial Average fell more than 3% and the benchmark S&P 500 (.SPX), opens new tab was down almost 4%.

Tech hardware and semiconductor
An 8.8% drop in Apple’s shares was the biggest weight on the S&P 500. More than 90% of its manufacturing is based in China, one of the hardest-hit countries by the tariffs, according to an estimate from Citi.

Rosenblatt Securities estimated the iPhone maker could face $39.5 billion of tariff costs, adding that “if these costs were just eaten by Apple, we estimate a near 32% hit to operating profit and EPS, annualized.”

Makers of PCs and AI servers will be hit hard as well. The US imported nearly $486 billion in electronics last year, the second-biggest sector for imports, after machinery, according to Census Bureau data.

PC makers, including Dell and HP, could face cost increases of about 10%-25%, adding between $200 and $500 in costs per unit, said Tony Redondo,  founder  of  Cosmos Currency Exchange.

That would squeeze margins at the companies, or force them to raise prices, potentially dealing yet another blow to personal computer demand that has already been choppy in recent years. Shares of Dell and HP were down about 17% and 14%, respectively.

The tariffs would make artificial intelligence servers pricier too, potentially adding millions in extra costs and upending AI development plans at Big Tech.

Microsoft was off 1.5% and Alphabet tumbled 3.2%.

Semiconductors were not on the list of goods subject to reciprocal tariffs but would still presumably be hit by the 10% baseline duties, analysts said.

The iShares Semiconductor ETF slumped 9.1%.

Retail Pain
Shares of major U.S. retailers including Walmart, Amazon and Target fell between 1.5% and 11% as they count on several Asian countries including China as key suppliers and could be forced to raise prices.

Among the major global production hubs, China was hit with an aggregate tariff of 54%. Vietnam was slapped with 46%, Cambodia with 49% and Indonesia with a 32% tariff rate.

Sportswear retailer Lululemon was down 10% and Nike fell about 12% as their key sourcing partners were hit with steep levies.

“With Asian production hubs particularly hit, all footwear and apparel company margins will be affected as costs rise,” Jefferies analysts said in a note.

The S&P 500 retail index fell 6% to its lowest since September 2024.

Major Wall Street lenders including JPMorgan Chase & Co, Citigroup and Bank of America Corp, which are sensitive to economic risks, dropped between 6% and 11%.

Declining equity valuations, alongside a muted recovery in mergers and acquisitions and initial public offerings, have raised fears that investment banking income could come under pressure. Weaker consumer confidence may also temper spending, hurting loan demand.

Regional banks including Citizens Financial and US Bancorp weakened.

The S&P 500 banks shed 7.6%, while the KRW Regional bank index shed 7.8%.

Auto industry
Carmakers dipped, with Ford and General Motors down about 4.7% and 3.8%, respectively, as auto tariffs were set to kick in on Thursday.

Electric vehicle makers Rivian fell 7.3% and Lucid dropped 1.9%, while Tesla was trading almost 5.3% lower.

Tariffs are expected to cost an additional $2,500 to $5,000 for the lowest-cost American cars, and up to $20,000 for some imported models and U.S. consumer impact is estimated at $30 billion for the first full year, Anderson Economic Group estimated.

Ford announced discounts for several models starting on Thursday, leaning on its healthy inventory to offer customers thousands of dollars off as rivals hike prices to absorb tariff costs.

Pharmaceuticals
Pharmaceuticals were temporarily exempted from the tariffs, helping shares of major drugmakers Pfizer and Johnson & Johnson to weather the market storm.

J&J shares rose 2.7%, while Amgen and Merck each rose less than 1% in afternoon trade, while Pfizer was down about 1%.

Still, pharma is not yet “out of the woods,” UBS analyst Trung Huynh said. Trump has an “appetite to effect change” in the industry, which could include a separate round of tariffs or a phased-in approach for levying duties on treatments, Huynh said.

US drugmakers are lobbying Trump to phase in tariffs on imported pharmaceutical products to reduce the sting from the charges and allow time to shift manufacturing, Reuters reported earlier this week.

Shares of glucose monitor maker Dexcom and GE Healthcare led declines for U.S. medical device firms whose supply chains and revenues are at risk from the tariffs on China, the European Union and Mexico.

Energy
Energy stocks and crude prices fell sharply despite imports of oil, gas and refined products being exempted from Trump’s new tariffs.

Brent crude and U.S. WTI fell more than 6%, weighing on oil, refinery and oilfield service stocks.

Producers APA and Devon Energy along with oilfield service company Halliburton and refiner Valero were the top losers in the segment, down between 12% and 14%.

“Despite energy being left off the list, crude prices are feeling clear downward pressure today, largely driven by renewed fears of a global economic slowdown,” said Henry Hoffman, co-portfolio manager of the Catalyst Energy Infrastructure Fund.

“Investors are grappling with the idea that aggressive tariff policies could further suppress demand growth worldwide,” he said, adding that OPEC’s surprise move to accelerate output increases has exacerbated market softness. Reuters

Marketing platform AppLovin said on Thursday it has submitted a bid for TikTok assets outside of China, ahead of the April 5 deadline set by the U.S. President Donald Trump to find a non-Chinese buyer for the short video app used by 170 million Americans.

AppLovin said in a regulatory filing that its proposal for TikTok is preliminary and there can be no assurance that a transaction will proceed.

Bidders for the short video social media company are piling up, as the weekend deadline for TikTok to find a buyer approaches. TikTok did not immediately respond to a Reuters request for comment.

“The addition of TikTok could accelerate AppLovin’s transition into a global advertising powerhouse, but regulatory and geopolitical complexities remain a critical variable for investors,” said Michael Ashley Schulman, chief investment officer at Running Point Capital.

Amazon and, separately, a consortium led by OnlyFans founder Tim Stokely are the latest to throw their hats into the ring for TikTok.

US officials have raised security concerns over the app’s ties to China, which TikTok and its owner, ByteDance, have denied.

Trump said last month his administration was in touch with four different groups about the sale of the platform, without identifying them.

The White House has been involved to an unprecedented level in the closely watched deal talks, effectively playing the role of an investment bank.

Trump has also said that he would consider a deal for TikTok where China agrees to approve the sale of the short video app owned by ByteDance in exchange for relief from U.S. tariffs on Chinese imports.

Private equity firm Blackstone is discussing joining ByteDance’s non-Chinese shareholders, led by Susquehanna International Group and General Atlantic, in contributing fresh capital to bid for TikTok’s U.S. business, Reuters has reported.

The future of the app used by nearly half of all Americans has been up in the air since a 2024 law, passed with overwhelming bipartisan support, required ByteDance to divest TikTok by January 19.

The app briefly went dark just before that deadline.

Trump, after taking office for a second term on January 20, signed an executive order seeking to delay by 75 days the enforcement of the law, allowing TikTok to continue its operations in the US temporarily. Reuters

As the United States (US) imposes reciprocal tariffs on India, expanding the production-linked incentive (PLI) scheme may be key to upholding the ambitious ‘Make in India’ initiative and mitigating the potential trade impact, say experts.

US President Donald Trump has announced reciprocal tariffs of 27 per cent on imports from India effective April 9.

However, certain goods – pharmaceutical products, semiconductors, lumber articles, copper and gold, energy resources and select minerals – have been spared the rod. Moreover, steel, aluminium, automobiles, and auto components are already covered under Section 232 duties.

Economists feel that the latest tariffs announced by the Trump administration could compel India to go faster on reforms and push the pedal further on its programmes such as ‘Make in India’ and the PLI scheme.

The PLI scheme was launched in 2020 to position India as a global manufacturing hub. With an outlay of Rs 1.97 trillion, it covers 14 sectors including mobile phone, drone, white goods, telecommunications, textiles, automotive, specialty steel, pharmaceutical drugs.

Madan Sabnavis, chief economist, Bank of Baroda, believes that the government would have to push the schemes and provide protection to domestic industries. “The sectors impacted by the reciprocal tariffs are textile, precious stones and to a small extent pharma which involve small and medium enterprises. There could be a bigger push for PLI in these sectors.”

Tempering the impact
The PLI scheme may also help cushion the blow for some sectors. For instance, India’s electronics exports, seeing a major boom driven by the shift of Apple’s iPhone manufacturing in India, is expected to be impacted. But experts noted that the sector may be better placed due to the PLI scheme for smartphones.

“Though electronics exports are directly hit by the US reciprocal tariffs, it is still better positioned to withstand the impact when compared to its Asian competitors like China and Vietnam. Also, India’s export competitiveness may remain relatively less affected due to its smaller share in the global electronics supply chain compared to its rivals, coupled with nascent but growing manufacturing under the PLI scheme, are expected to cushion immediate impacts,” said Kunal Chaudhary, Tax Partner, EY India.

At present, India is contributing 10-15 per cent of iPhone production. On the other hand, for China, the new tariff rate is around 54 per cent, and for Vietnam, 46 per cent.

Giving a fillip
In certain segments, like textiles, India stands in better stead with respect to competitors like Vietnam, Bangladesh and China, which face higher tariffs.

However, Naren Goenka from Texport Industries says India’s textile industry may also need more support from the government to further boost ‘Make in India’ to meet a possible rising demand.

The electric vehicle sector has a good opportunity to capture a larger share of the US market, especially in the budget car segment, according to EY India. China’s auto and component exports to the US stood at $17.99 billion, while India’s was only $2.1 billion last year.

It added, “To accelerate this, the government should enhance the PLI scheme by including more auto components, opening it to new players, and extending it by two years.”

Saurabh Agarwal, Tax partner, EY India said that to fully leverage India’s export potential, the government should expand existing PLI schemes in the sector to cover a wider range of products.

Concerns galore
Experts feel that India’s growth which is largely dependent on domestic demand is not likely to be hugely impacted. CareEdge estimates that the direct impact of reciprocal tariffs on India’s GDP would be 0.2 to 0.3 per cent.

“The government, however, has to ensure that the domestic consumption and demand remain healthy. To do that, it is important to push manufacturing activity and job creation,” said Rajani Sinha, chief economist, CareEdge.

While the impact of reciprocal tariffs on global growth is yet to be assessed, economy experts say that its impact on India will be limited, compared to other Asian economies.

But concerns around the indirect impact amidst looming uncertainties over more such tariffs on other sectors such as semiconductor still remain. Economists feel that it could play spoilsport for private investments.

“We may see more tariffs on pharma, semiconductor sectors. All business decisions could be put on hold till there is more clarity. Private investment, which was expected to pick up, may be in wait and watch mode,” Sinha added.

In this scenario, even with a push to the PLI scheme, if the demand in the US is impacted, India will have to divert its exports elsewhere, she noted. Business Standard

President Donald Trump will today meet to consider a proposal for divesting TikTok’s US operations from Chinese parent company ByteDance Ltd., just days ahead of a deadline for a sale of the popular social media app.

The administration is considering a deal that would include Oracle Corp. and Blackstone Inc. and potentially other investors in a joint venture.

Trump will consult with Vice President JD Vance, who is helping run negotiations over the forced sale, as well as other top officials, the people said. Plans for the meeting were first reported by CBS News.

The White House, ByteDance, Blackstone, TikTok and Oracle did not immediately respond to requests for comment.

The deal led by Oracle would give the company a small stake in a new American entity. Oracle would provide security assurances for US data while potentially leaving the app’s valuable algorithm in Chinese hands, according to a proposal previously circulated within the administration.

Trump faces an April 5 deadline for ByteDance to find a buyer for TikTok’s US operations or see the app banned in the country, though he has said he would be willing to extend the deadline as necessary. A bipartisan group of US lawmakers passed the law, signed by former President Joe Biden, last year to address concerns that the Chinese government could collect sensitive data on US citizens.

Trump has extended the deadline once already from an initial date of Jan. 19. Even if he signs off on the proposal, it would still require approval from TikTok’s parent company and the Chinese government.

It remains unclear if ByteDance and the Chinese have been involved in the conversations. However, authorities in Beijing would likely accept a deal with Oracle’s involvement as long as TikTok’s algorithm remains fully under Chinese control.

Oracle has already built a significant cloud infrastructure business to work with TikTok as part of a partnership called Project Texas. It was also tapped to help the app cordon off sensitive US user data from ByteDance, though that plan ultimately failed to win acceptance from regulators in Washington.

Critics of the proposal, including some Republican lawmakers, say it risks failing to comply with the law by leaving unresolved concerns that China could access sensitive data or use the app to spread propaganda. ByteDance and officials in Beijing have previously rejected those claims.

Trump has appeared unconcerned about the looming deadline, telling reporters this week that there were many interested parties interested in the app. He has also said he would consider lowering tariff rates he has imposed on China to secure Beijing’s support of a sale. Bloomberg

The Telecommunications Authority of Fiji (TAF) is embarking on a comprehensive market analysis of Fiji’s telecommunications sector.

TAF states Fiji’s telecommunications sector has undergone significant transformation over the past few decades, with key regulatory changes, new market entrants, and the introduction of emerging technologies shaping the competitive landscape.

TAF adds the deregulation of the sector, the issuance of new licenses, and the increasing demand for data services have highlighted the need for a structured market analysis.

“This study aims to inform policy decisions and strategic initiatives to enhance the sector’s growth and competitiveness,” states TAF.

“Current trends such as increased demand for data services, the rise of mobile payments, and the introduction of new Apps and services has changed consumer behavior that has affected the sector.”

TAF states the impact of COVID-19 pandemic on telecommunications, especially influencing businesses on adaptation of remote work and digital services has increased demand for fast and reliable broadband services.

“Given the recent significant changes in Fiji’s telecommunications landscape, the Telecommunications Authority of Fiji (TAF) aims to conduct a comprehensive market assessment of the sector.”

“This assessment will provide strategic recommendations to foster a balanced and competitive market environment while identifying opportunities for the introduction of new services, operators, and providers.’

TAF will recruit a consultant to carry out this assessment. Fiji Times

The frenzy to create Ghibli-style AI art using ChatGPT’s image-generation tool led to a record surge in users for OpenAI’s chatbot last week, straining its servers and temporarily limiting the feature’s usage.

The viral trend saw users from across the globe flood social media with images based on the hand-drawn style of the famed Japanese animation outfit, Studio Ghibli, founded by renowned director Hayao Miyazaki and known for movies such as “Spirited Away” and “My Neighbor Totoro”.

Average weekly active users breached the 150 million mark for the first time this year, according to data from market research firm Similarweb.

hibli-style AI art using ChatGPT led to a record surge in users last week, straining its servers [File] | Photo Credit: AP

The frenzy to create Ghibli-style AI art using ChatGPT’s image-generation tool led to a record surge in users for OpenAI’s chatbot last week, straining its servers and temporarily limiting the feature’s usage.

The viral trend saw users from across the globe flood social media with images based on the hand-drawn style of the famed Japanese animation outfit, Studio Ghibli, founded by renowned director Hayao Miyazaki and known for movies such as “Spirited Away” and “My Neighbor Totoro”.

Average weekly active users breached the 150 million mark for the first time this year, according to data from market research firm Similarweb.

“We added one million users in the last hour,” OpenAI CEO Sam Altman said in an X post on Monday, comparing it with the addition of one million users in five days following ChatGPT’s red-hot launch more than two years ago.

Active users, in-app subscription revenue and app downloads reached an all-time high last week, according to SensorTower data, after the AI company launched updates to its GPT-4o model, enabling advanced image generation capabilities.

Global app downloads and weekly active users on the ChatGPT app grew 11% and 5%, respectively, from the prior week, while in-app purchase revenue increased 6%, the market intelligence firm said.

Ghibli-style AI art using ChatGPT led to a record surge in users last week, straining its servers [File] | Photo Credit: AP

The frenzy to create Ghibli-style AI art using ChatGPT’s image-generation tool led to a record surge in users for OpenAI’s chatbot last week, straining its servers and temporarily limiting the feature’s usage.

The viral trend saw users from across the globe flood social media with images based on the hand-drawn style of the famed Japanese animation outfit, Studio Ghibli, founded by renowned director Hayao Miyazaki and known for movies such as “Spirited Away” and “My Neighbor Totoro”.

Average weekly active users breached the 150 million mark for the first time this year, according to data from market research firm Similarweb.

“We added one million users in the last hour,” OpenAI CEO Sam Altman said in an X post on Monday, comparing it with the addition of one million users in five days following ChatGPT’s red-hot launch more than two years ago.

Active users, in-app subscription revenue and app downloads reached an all-time high last week, according to SensorTower data, after the AI company launched updates to its GPT-4o model, enabling advanced image generation capabilities.

OpenAI says it raised $40 billion at valuation of $300 billion

Global app downloads and weekly active users on the ChatGPT app grew 11% and 5%, respectively, from the prior week, while in-app purchase revenue increased 6%, the market intelligence firm said.

However, the chatbot has been hit with a series of glitches and low-scale outages over the past week as it deals with a spike in traffic due to the popularity of its image-generating tool.

“We are getting things under control, but you should expect new releases from OpenAI to be delayed, stuff to break, and for service to sometimes be slow as we deal with capacity challenges,” the OpenAI co-founder said on Tuesday.

e Ghibli-style AI art using ChatGPT led to a record surge in users last week, straining its servers [File] | Photo Credit: AP

The frenzy to create Ghibli-style AI art using ChatGPT’s image-generation tool led to a record surge in users for OpenAI’s chatbot last week, straining its servers and temporarily limiting the feature’s usage.

The viral trend saw users from across the globe flood social media with images based on the hand-drawn style of the famed Japanese animation outfit, Studio Ghibli, founded by renowned director Hayao Miyazaki and known for movies such as “Spirited Away” and “My Neighbor Totoro”.

Average weekly active users breached the 150 million mark for the first time this year, according to data from market research firm Similarweb.

“We added one million users in the last hour,” OpenAI CEO Sam Altman said in an X post on Monday, comparing it with the addition of one million users in five days following ChatGPT’s red-hot launch more than two years ago.

Active users, in-app subscription revenue and app downloads reached an all-time high last week, according to SensorTower data, after the AI company launched updates to its GPT-4o model, enabling advanced image generation capabilities.

OpenAI says it raised $40 billion at valuation of $300 billion

Global app downloads and weekly active users on the ChatGPT app grew 11% and 5%, respectively, from the prior week, while in-app purchase revenue increased 6%, the market intelligence firm said.

However, the chatbot has been hit with a series of glitches and low-scale outages over the past week as it deals with a spike in traffic due to the popularity of its image-generating tool.

“We are getting things under control, but you should expect new releases from OpenAI to be delayed, stuff to break, and for service to sometimes be slow as we deal with capacity challenges,” the OpenAI co-founder said on Tuesday.

The extensive use of the AI tool for the Ghibli effect has also led to questions about potential copyright violations.

“The legal landscape of AI-generated images mimicking Studio Ghibli’s distinctive style is an uncertain terrain. Copyright law has generally protected only specific expressions rather than artistic styles themselves,” said Evan Brown, partner at law firm Neal & McDevitt.

OpenAI did not immediately respond to a request for comment on the data used to train its AI models and the legality surrounding its latest feature.

Studio Ghibli co-founder Miyazaki’s comments from 2016 on AI-generated images resurfaced after the trend blew up last week.

“I am utterly disgusted,” Miyazaki had said after being shown an early render of an AI-generated.

“I would never wish to incorporate this technology into my work at all.” Reuters