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  • Regional video streaming services earn a lot of funds from Indian viewers offshore

    Regional video streaming services earn a lot of funds from Indian viewers offshore

    Local video streaming platforms focussed on regional languages and niche target audiences are increasingly getting a substantial chunk of their revenue from overseas Indian viewers, in some cases up to 40%.

    Not only do these users in countries including the US, the UK, Canada and Malaysia have the ability to pay for subscriptions, they also relate deeply to stories that resonate with their cultural identities.

    Platform executives said Indian viewers overseas have a strong preference for deeply rooted narratives, especially those centred on rural life and cultural traditions, while older Bollywood and regional language classic movies also remain a big draw.

    “Growing our international digital business is a critical part of our growth strategy, given the large Indian and South Asian diaspora across markets that are avid consumers of Indian content including Bollywood films,” a ZEE5 spokesperson said. “While content preferences among diaspora audiences largely mirror those in India, there’s a noticeable leaning toward culturally rooted narratives and nostalgic, family-centric content.”

    Bollywood classics and regional blockbusters resonate deeply with this audience, alongside a growing demand for Indian language content, particularly Telugu and Tamil titles, followed by Malayalam and Bengali, the spokesperson said.

    Pattern of engagement
    ZEE5 has built a significant presence overseas including the US, the UK, the Middle East and North Africa, and key Asia-Pacific nations. Movies such as RRR, Gadar 2 and Sam Bahadur have emerged as big hits, while originals Despatch, Hisaab Baraber and Mrs. Sankranthiki Vasthunam (Telugu), Aindham Vedham (Tamil), Thiru Manickam (Tamil) and Identity (Malayalam) have been among the biggest non-Hindi titles.

    “We’ve observed strong viewership spikes during weekends and local holidays, reflecting the diaspora’s engagement patterns,” the spokesperson said.

    Strategic partnerships remain central to ZEE5’s global expansion and it is collaborating with telecom operators and smart TV providers to improve accessibility, the spokesperson said.

    “Additionally, we are refining data-driven personalisation, AI-powered recommendations, and multi-device accessibility to elevate the user experience. With a focus on profitability, we are optimising our pricing and both our ad-supported and subscription-driven models,” the spokesperson added.

    Diasporic audiences have a deep emotional connection with content that reflects their cultural roots, whether it’s Odia, Bengali, Tamil, or Hindi storytelling, said Kaushik Das, founder of AAO NXT, an Odia language OTT. Unlike Indian subscribers who have access to a vast content ecosystem, overseas viewers often actively seek content that reconnects them to home, Das pointed out.

    “A lot of movies that don’t get a big release in international markets tend to do well for us. The potential is much higher than achieved now, and we are looking to diversify much of our slate for international audiences going forward, including producing Bangladeshi web shows and releasing all big theatrical Bengali movies on the platform,” said Soumya Mukherjee, chief operating officer of Bengali streaming service hoichoi.

    Rajat Agrawal, chief operating officer of Ultra Media & Entertainment Group, said diasporic or overseas audiences for Indian OTT platforms prefer content that resonates with their cultural heritage, and they’re more likely to consume content in different languages, with subtitles or dubbing. He referred to the Middle East, the US, the UK and Southeast Asia as key markets.

    “Overseas audiences also tend to have higher average revenue per user (ARPU) due to more robust digital payment ecosystems in their countries,” Agrawal pointed out.

    To garner more viewership abroad, the company that owns three OTT platforms is looking at creating content that resonates with the experiences of overseas Indians, expanding dubbing and subtitling options, besides collaborating with international producers, studios, or platforms to co-create content.

    Overseas promotions
    Ultra Media plans to create content that caters to specific interests or niches, such as Bollywood music or Indian classical music, and is in discussions with social media influencers and content creators who are popular among overseas Indians to promote its platforms.

    Going ahead, local streaming platforms intend to host offline events, screenings and activations in overseas markets to build brand awareness and engage audiences. Teams will also leverage data analytics to understand overseas audience preferences and tailor content and marketing strategies accordingly, executives said.

    A spokesperson at STAGE, a platform that offers Haryanvi, Rajasthani and Bhojpuri content, said it recently launched its Bhojpuri segment for a market that extends across regions in India, Nepal, Fiji, Mauritius, and beyond.

    Chaupal, a platform specialising in Punjabi, Haryanvi and Bhojpuri content, said its growth in overseas markets so far has been almost entirely organic, driven by strong community connections and word of mouth.

    “We plan to actively engage foreign communities through a mix of offline and online initiatives. This includes community engagement programmes, strategic tie-ups with concerts, digital marketing pushes in key diaspora regions, and collaborations with restaurants and cultural hubs,” said Ujjwal Mahajan, co-founder of Chaupal. LiveMint

  • Anton Levy appointed to Warner Bros. Discovery Board of Directors

    Anton Levy appointed to Warner Bros. Discovery Board of Directors

    Warner Bros Discovery said Monday that it plans to add veteran tech investor Anton Levy as an independent director on its soon-to-expand board of directors.

    The company’s existing board, which consists of 13 directors, today approved an expansion to 14 timed to the annual shareholder meeting later this spring. The move follows a report in the Wall Street Journal by shareholder Sessa Capital, which has accumulated a 1% stake and advocated for a board revamp and more aggressive pursuit of strategic options including a cable network spinoff.

    Levy is currently an Advisory Director at General Atlantic and previously served as General Atlantic’s Co-President and Chairman of Global Technology. He has led many of General Atlantic’s most notable investments in leading tech firms, among them Airbnb, Alibaba Group, Crowdstrike, Facebook, Klarna AB, Mercado Libre, Slack, Snapchat, Squarespace and Uber.

    “We are pleased to welcome Anton to the Warner Bros. Discovery Board,” chair Samuel A. Di Piazza, Jr. said in a press release. “His addition is consistent with the commitment we announced in December to continue to enhance the board with industry experts with track records of value creation. We look forward to working with Anton as we continue to oversee the execution of Warner Bros. Discovery’s strategy to unlock value for shareholders.”

    The planned addition of Levy to the board follows the arrival earlier this year of Anthony Noto and Joey Levin as independent directors.

    “We are making meaningful progress to achieve our vision for Warner Bros. Discovery and harness the power of our unique, world-class assets to drive profitable growth,” CEO David Zaslav said. “We continue to move forward with urgency to improve performance and position our businesses for success over the near- and long-term amid the evolving industry landscape. We are confident that Anton will add valuable perspectives as we continue to take steps to drive long-term value for shareholders.”

    WBD, formed in April 2022 from the merger of Discovery and WarnerMedia, has hit a few bumps with shareholders during its relatively brief existence. Last year, it agreed to pay a $125 million settlement after a judge agreed that the merger was “not entirely fair” to Discovery shareholders. Even without legal action, the combined company has struggled to win over Wall Street, with its shares trading at less than half of their value at the time of the deal. Deadline

  • Cloud services in China rise 14% to $11.1B in Q4’24

    Cloud services in China rise 14% to $11.1B in Q4’24

    In Q4 2024, cloud infrastructure services spending in Mainland China reached US$11.1 billion, representing year-on-year growth of 14%, according to the latest data from Canalys, now part of Omdia. For full-year 2024, total cloud spending rose from US$35.3 billion in 2023 to US$40.0 billion in 2024, marking a 13% annual increase. The rapid adoption of AI models has surpassed expectations, fueling a significant surge in demand for cloud. DeepSeek’s strong global momentum, driven by its exceptional performance and cost efficiency, has further heightened enthusiasm among enterprise customers in Mainland China to accelerate their exploration and deployment of AI. In Q4 2024, cloud providers reported robust customer demand, though growth continued to be constrained by supply-side limitations. In response, leading vendors announced substantial increases in capital investment to accelerate the modernization of AI infrastructure. Canalys forecasts that the growth of Mainland China’s cloud infrastructure services market will further accelerate in 2025, reaching 15%.

    In Q4 2024, the top three cloud service providers in Mainland China – Alibaba Cloud, Huawei Cloud and Tencent Cloud – maintained their market positions, collectively accounting for 71% of total cloud infrastructure services, with combined year-on-year growth of 12%. The accelerating demand for AI products has led to an ongoing rise in market concentration, as leading cloud providers capitalize on their advantages in compute capacity and infrastructure deployment. In Q4 2024, partner-driven cloud revenue remained stable, representing 26% of total market revenue. As the AI ecosystem continues to evolve, this share is expected to grow, driven by increasing demand across industries for integrated solutions and strategic collaboration.

    In January 2025, Chinese AI startup DeepSeek launched its foundation model, DeepSeek R1. Offering GPT-4o-level performance at a fraction of the cost, it was widely seen as a disruptive force and quickly gained global attention. “The launch of DeepSeek R1 has redefined the benchmarks for AI foundation model performance and cost, accelerating enterprise adoption of AI and driving profound changes across the cloud services value chain,” said Rachel Brindley, Senior Director at Canalys. “This breakthrough has significantly lowered the barriers to AI adoption and further enhanced the global influence of China’s AI ecosystem.”

    Beginning in February 2025, leading Chinese cloud vendors integrated DeepSeek’s large model services into their platforms, further enhancing their AI product offerings. Propelled by DeepSeek R1, enterprise interest in AI models in China surged to unprecedented levels, with adoption expanding at a scale and speed that exceeded expectations. “The rapid adoption of DeepSeek has significantly lowered the cost barrier for enterprises to deploy large-scale AI models, sparking strong customer interest in AI applications,” said Yi Zhang, Analyst at Canalys. “The growing demand for scalable and cost-efficient AI use cases is driving a market shift from AI training-centric to AI inference-centric dynamics. The increase in cloud inference workloads is prompting vendors to scale up infrastructure investments accordingly.”

    AI investment is entering a phase of substantive deployment. In line with the large-scale, high-intensity commitments made by US hyperscalers, leading Chinese cloud vendors are similarly accelerating their investment. In February 2025, Alibaba announced plans to invest more than CNY380 billion (US$52.6 billion) over the next three years in cloud computing and AI infrastructure – surpassing the company’s total investment in these areas over the past decade. In Q4 2024, Tencent reported capital expenditure of CNY34.9 billion (US$4.8 billion), a year-on-year increase of 421%. The company also indicated that it will further boost investment in 2025, with a particular focus on GPUs and related services to enhance its AI capabilities.

    Alibaba Cloud maintained its lead in Mainland China’s cloud market in Q4 with a 36% share and 10% year-on-year growth, driven by strong AI demand. It recorded triple-digit AI-related revenue growth for the sixth straight quarter. By January 2025, over 290,000 users had accessed the Qwen API via the Tongyi Bailian platform. More than 90,000 Qwen-derived models exist on Hugging Face, with all top 10 open-source models based on Qwen. To enhance its AI offering, Alibaba Cloud launched the Qwen 2.5 Max model, ranking among top-tier models in coding and math. It also expanded third-party model access, enabling rapid deployment of DeepSeek V3 and R1 through the PAI Model Gallery. In February, it accelerated global expansion with new data centers in Thailand and Mexico.

    Huawei Cloud, the second-largest provider in China’s cloud services market, recorded solid growth in Q4 2024, with revenue increasing 22% year on year and its market share reaching 20%. Since the launch of the Pangu Model 5.0, Huawei Cloud has continued to create value across a broad range of industries, including coal mining, railways, meteorology and finance, through its comprehensive portfolio of multimodal models tailored to diverse scales and scenarios. In February 2025, as part of its ongoing efforts to adopt advanced AI technologies, Huawei Cloud partnered with Beijing-based AI infrastructure start-up SiliconFlow to integrate DeepSeek V3 and R1 into its Ascend cloud platform, significantly enhancing inference efficiency. Beyond AI, Huawei Cloud accelerated its global expansion in 2024, with overseas revenue rising by over 50%. In March 2025, it hosted the China Enterprise Go-Global Summit, further strengthening its role in driving global digital transformation.

    Tencent Cloud ranked third in China’s cloud services market in Q4, holding a stable 15% share. Driven by strong AI demand, its AI-related cloud revenue nearly doubled in 2024. But overall growth was temporarily constrained as GPU resources were prioritized for internal AI use. From Q4 2024, Tencent ramped up GPU procurement, expecting future deployments to boost cloud revenue. In February 2025, Tencent Cloud enabled one-click deployment of DeepSeek R1 on its HAI platform, enhancing AI accessibility and efficiency. The launch of its T1 inference model in March 2025, offering faster responses and improved long-text processing, further strengthened its position in China’s AI market. Canalys

  • At today’s meeting, Trump will consider plans to sell TikTok

    At today’s meeting, Trump will consider plans to sell TikTok

    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 telecom industry in Fiji will be evaluated

    The telecom industry in Fiji will be evaluated

    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

  • Ghibli effect: After the launch of the viral feature, ChatGPT usage hits a record peak

    Ghibli effect: After the launch of the viral feature, ChatGPT usage hits a record peak

    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

  • IPOs worth $100B are anticipated in India’s tech sector by 2027

    IPOs worth $100B are anticipated in India’s tech sector by 2027

    More than three dozen tech startups with a combined valuation of $100 billion are set to go public by 2027 in what would mark a rebound in stock sales in India, according to one of the country’s top deal advisers to internet companies.

    Walmart Inc.-controlled online retailer Flipkart, payments firm PhonePe and lodging provider Oyo Hotels are among the companies seeking to list in the country, which was the world’s second-largest market for share sales last year but has lost steam since. Most companies preparing for an initial public offering have been able to strike a balance between speedy growth and profitability, according to a report by the homegrown investment bank The Rainmaker Group.

    Young companies are now in better shape than in 2021 and 2022, when several startups that sought to capture India’s booming capital markets cratered after listing at high valuations, said Kashyap Chanchani, managing partner at Rainmaker. Payment provider Paytm has dropped about 63% since its IPO while beauty retailer Nykaa is down 4%.

    “The financial health of the startups due to list in the next two years is materially better than the companies that listed previously,” Chanchani, who helped Indian startups raise $1 billion in equity last year, said in an interview. “Two-thirds of these firms are already profitable, and they are also doing a better job with transparency.”

    Rainmaker’s clients have included Oyo and e-commerce startup Swiggy, and the firm typically receives a cut of the fundraising deals it helps to arrange. It doesn’t advise companies on IPOs.

    The number of share sales in India dropped by 34% in the first quarter as the stock market sputtered. The benchmark NSE Nifty 50 Index had risen for nine consecutive years, but it started declining in late September amid an unexpected slowdown in economic growth and a slew of analysts downgraded their expectations for corporate earnings.

    First-quarter proceeds from IPOs, block sales and share placements in India nearly halved to $7.1 billion, slipping below those of Hong Kong and Japan.

    Still, Chanchani is among bankers predicting that deals in India will pick up in the coming months, when several sales are expected to hit the market. Those include LG Electronics Inc.’s Indian unit, which may raise as much as $1.7 billion, and electric-scooter maker Ather Energy Pvt., which could raise about $400 million.

    A new surge in startup IPOs would provide a much-needed exit to large investors such as SoftBank Group Corp. and Prosus NV. Billionaire Masayoshi Son’s SoftBank Vision Fund is a shareholder in companies such as Oyo, optician Lenskart Solutions Pvt., and used-car seller CARS24 Solutions Pvt., while Prosus is an investor in e-commerce firm Meesho and home services startup Urban Company.

    Firms like SoftBank and Prosus “have a dozen companies or so where they are sitting on massive gains, and several of these firms have begun seeking the public markets route,” Chanchani said, cautioning though that IPOs will have to be priced carefully as retail investors will reject lofty valuations.

    Companies going public will have to assuage investor concerns about a slowing economy and earnings growth. Some of India’s newly listed stocks have also declined after sales restrictions expired, adding pressure to a stock market already down hundreds of billions of dollars since late last year.

    India’s startup economy remains among the biggest in the world after the US and China. Still, it’s also one that’s seen major corporate governance lapses, sinking valuations and profits turning to dust. Many young firms have been forced to cut jobs and growth plans, while others have imploded. Teacher-turned-entrepreneur Byju Raveendran’s eponymous online tutoring business illustrates how a once high-flying company can run aground as investors lose faith in founders once-labeled charismatic.

    “One of the key questions that investors ask us often is — can we trust the founders?” Chanchani said. Bloomberg

  • Spending on cloud infrastructure is still growing

    Spending on cloud infrastructure is still growing

    According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment, spending on compute and storage infrastructure products for cloud deployments, including dedicated and shared IT environments, increased 99.3% year-over-year in the fourth quarter of 2024 (4Q24) to $67.0 billion. Spending on cloud infrastructure continues to outgrow the non-cloud segment with the latter growing by 25.8% in 4Q24 to $22.0 billion. The cloud infrastructure segment experienced double digit growth unit demand of 33.5%, with a continued increase in ASPs mostly related to the accelerated increase of GPU server shipments.

    “Cloud infrastructure spending growth continued outpacing market expectations again in the fourth quarter,” said Juan Pablo Seminara, director for IDC’s Worldwide Enterprise Infrastructure Trackers. “Even after raising some doubts about the necessity of large investments in AI infrastructure exposed by DeepSeek’s R1 initial impact that later proven been not that accurate, the industry is also understanding that the evolution from simple chatbots to reasoning models to agentic AI will require several orders of magnitude more processing capacity, especially for inferencing. So even by gaining efficiency on investments costs, IDC expects cloud infrastructure market growth of 17.8% CAGR for the following five years.”

    Spending on shared cloud infrastructure reached $57.0 billion in the fourth quarter of 2024, increasing 124.4% compared to a year ago. The shared cloud infrastructure category continues capturing the largest share of spending compared to dedicated deployments and non-cloud spending, in 4Q24 shared cloud accounted for 64.0% of the total infrastructure spending. The dedicated cloud infrastructure segment grew 21.8% year-over-year in 4Q24 to $10.0 billion.

    For 2025, IDC is forecasting cloud infrastructure spending to grow 33.3% compared to 2024 to $271.5 billion. Non-cloud infrastructure is expected to decline -4.9% to $68.1 billion. Shared cloud infrastructure is expected to grow 25.7% year over year to $213.7 billion for the full year, spending on dedicated cloud infrastructure expected to grow further in 2025 with 71.8% to $57.8 billion for the full year. Additionally, the cloud infrastructure GPU based accelerated market will show a 46.8% growth in 2025, reaching $157.8 billion value as AI infrastructure investments still count with an important backlog as well as future projects in the cloud.

    IDC’s service provider category includes cloud service providers, digital service providers, communications service providers, hyperscaler, and managed service providers. In 4Q24, service providers as a group spent $65.6 billion on compute and storage infrastructure, up 103.9% from the prior year. This spending accounted for 73.8% of the total market. Non-service providers (e.g., enterprises, government, etc.) also increased their spending to $23.3 billion growing 23.5% year over year. IDC expects compute and storage spending by service providers to reach $262.1 billion in 2025, growing at 30.9% year-over-year.

    On a geographic basis, year-over-year spending on cloud infrastructure in 4Q24 showed very positive results across all regions where the fastest growing regions were Canada and USA showing triple digit growth of 151.8% and 125.3% respectively, regions with double digit growth were China, Japan, APeJC, Western Europe, Middle East & Africa and Latin America with 99.6%, 76.2%, 48.0%, 36.8%, 28.1% and 14.3% respectively. While Central & Eastern Europe was the only region showing one digit growth at 5.6%.

    Long term, IDC predicts spending on cloud infrastructure to have a compound annual growth rate (CAGR) of 17.8% over the 2024-2029 forecast period, reaching $461.9 billion in 2029 and accounting for 83.0% of total compute and storage infrastructure spend. Shared cloud infrastructure spending will account for 80.5% of the total cloud spending in 2029, growing at a 16.9% CAGR and reaching $371.7 billion. Spending on dedicated cloud infrastructure will grow at a CAGR of 21.8% to $90.3 billion by 2029. Spending on non-cloud infrastructure will also rebound with a 5.7% CAGR, reaching $94.4 billion in 2029. Spending by service providers on compute and storage infrastructure is expected to grow at a 17.5% CAGR, reaching $448.0 billion in 2029. IDC

  • A bill to modify charity hospitals’ asset tax breaks is passed by the Senate

    A bill to modify charity hospitals’ asset tax breaks is passed by the Senate

    The Senate has passed a bill to revise property tax exemptions for nonprofit hospitals.

    Senate Majority Caucus Chairman Ben Toews described the bill as “a collaborative effort between the Idaho Association of Counties and the Idaho Hospital Association.” It tightens the general definition of hospital while specifically designating critical access hospitals and rural emergency hospitals for the exemption.

    “This is a great example of the legislative process working well,” said Toews, R-Coeur d’Alene.

    House Bill 130, now amended twice by the Senate, is the result of Ada County’s repeated requests for more control over which hospital properties qualify for the tax exemption.

    Senate Majority Leader Lori Den Hartog, R-Meridian, explained the issue in debate Tuesday.

    “Some of our hospitals now are health systems, so they own and operate – and do – a lot of different things in our community. When the hospital exemption was put into place in this section of code back in the mid to late 90s, we didn’t have what we have today,” Den Hartog said. “In this valley, we have two major health systems. They own and operate a lot of different satellite offices that, again, benefit the community but they’re not what we think of as traditional hospitals.”

    The bill will return to the House for consideration because it has been amended. If they concur with the changes, it moves to the governor’s desk for his signature or veto. Idaho Reports

  • US judicial decisions FDA isn’t able to control tests created in labs

    US judicial decisions FDA isn’t able to control tests created in labs

    The US District Court for the Eastern District of Texas March 31 ruled that the Food and Drug Administration does not have the authority to regulate laboratory-developed tests.

    The FDA last April issued a final rule that would have phased out its general enforcement discretion approach for most lab-developed tests over four years. The phase-out deadlines set in the final rule are no longer in effect.

    The AHA previously expressed concerns about the proposed rule and urged the FDA not to apply the rule to hospital and health system lab-developed tests.

    “This ruling ensures that hospital-based labs are able to continue to develop innovative and high-quality tests that provide physicians with important clinical information to help diagnose and treat patients,” said Jason Kleinman, AHA director of federal relations. “The LDT final rule would have stifled medical innovation and dramatically increased regulatory burden and costs for both hospitals and the federal government.” American Hospital Association