AI start-up investment jumps and other digital tech stories to read this month

Investment in artificial intelligence (AI) jumped in the second quarter of the year, according to new data from Crunchbase.

Investment in AI start-ups reached $24 billion in the quarter that ran from April to June – more than double the figure from the previous quarter, Reuters reports.

Overall start-up funding reached $79 billion in the period – up 16% – largely driven by AI investment, which became the largest sector for the first time.

However, start-up funding remains lower than levels seen in the last three years, with global funding falling 5% in the first half of 2024.

The reintroduction of net neutrality rules in the United States has been delayed, after a US appeals court said it was putting the Federal Communications Commission's (FCC) reinstatement on hold until 5 August.

The pause is to allow "sufficient opportunity to consider the merits" of legal challenges from the broadband industry. The rules, first introduced in 2015 and rescinded in 2017 under President Trump, require internet service providers to treat internet data and users equally. They prevent providers from restricting access, slowing speeds or blocking content for certain users.

The rules were originally introduced by President Obama's administration, but, under President Trump, the FCC had argued they were unnecessary and blocked innovation. President Biden signed an executive order in 2021 encouraging the FCC to reintroduce them.

Hedge funds looking for AI-related stock bargains are turning to South Korea and its chipmakers, reports Reuters. With attention on these companies, generative AI developers have been rushing to secure high-bandwidth memory chips.

The UK's new Labour government has said it will explore methods to effectively regulate AI models but has yet to propose any specific laws. The government also plans to toughen online safety laws.

Around 25% of companies in Japan have adopted AI into their businesses – but more than two-fifths have no plans to make use of the technology, according to a Reuters survey.

Google, alongside NBCUniversal and the US Olympic and Paralympic Committee, has announced its use of AI to explain competitions as part of the US broadcast of the Paris Olympics.

To mark the 60th anniversary of the Selma to Montgomery civil rights marches, provisional plans have been announced to allow people from across the United States and around the globe to participate via the metaverse.

In California, a new AI regulation bill - California Senate Bill 1047 - is causing debate in the state, and beyond. The bill would call for those spending more than $100 million and using a specific, high level of computing power to introduce and comply with safety testing and monitoring. However, opponents say it would stifle innovation.

A new report warns that Europe is falling behind on digital transformation targets set up by the European Union. The State of the Digital Decade identified gaps in areas including connectivity and digital skills.

AI was a key discussion point at the Forum's Annual Meeting of the New Champions at the end of June. Read more about the opportunities leaders see to harness the technology.

Sovereign AI is the ability for a nation to build AI with homegrown talent, based on local or national AI strategies. Joseph Wehbe, Chief Artificial Intelligence Ecosystem Builder at DAIMLAS, explains why this approach is important to adapting AI to local needs and values.