Category Archives: Technology sector

G7 plan ‘will slash UK tax revenue from US tech firms’ say experts

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Global tax changes could mean Treasury loses £230m digital services tax receipts from Google, Amazon, Facebook and eBay

Experts have warned that US tech companies, including Google, Amazon and Facebook, could pay less tax in the UK and several other big economies under global reforms agreed at the weekend by the G7.

In a key stumbling block emerging days after the landmark deal, research from the TaxWatch campaign group indicates that the UK Treasury stands to lose about £230m from the taxes paid each year by four of the big US tech firms.

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Microsoft’s Kate Crawford: ‘AI is neither artificial nor intelligent’

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The AI researcher on how natural resources and human labour drive machine learning and the regressive stereotypes that are baked into its algorithms

Kate Crawford studies the social and political implications of artificial intelligence. She is a research professor of communication and science and technology studies at the University of Southern California and a senior principal researcher at Microsoft Research. Her new book, Atlas of AI, looks at what it takes to make AI and what’s at stake as it reshapes our world.

You’ve written a book critical of AI but you work for a company that is among the leaders in its deployment. How do you square that circle?
I work in the research wing of Microsoft, which is a distinct organisation, separate from product development. Unusually, over its 30-year history, it has hired social scientists to look critically at how technologies are being built. Being on the inside, we are often able to see downsides early before systems are widely deployed. My book did not go through any pre-publication review – Microsoft Research does not require that – and my lab leaders support asking hard questions, even if the answers involve a critical assessment of current technological practices.

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Microsoft Irish subsidiary paid zero corporate tax on £220bn profit last year

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Microsoft Round Island One is ‘tax resident’ in Bermuda, with no employees except directors

An Irish subsidiary of Microsoft made a profit of $315bn (£222bn) last year but paid no corporation tax, as it is “resident” for tax purposes in Bermuda.

The profit generated by the company, Microsoft Round Island One, is equal to nearly three-quarters of Ireland’s entire gross domestic product (GDP) – even though it has zero employees.

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‘Silicon Six’ tech giants accused of inflating tax payments by almost $100bn

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Study claims firms paid $96bn less in tax between 2011 and 2020 than the notional figures cited in their annual reports

The giant US tech firms known as the “Silicon Six” have been accused of inflating their stated tax payments by almost $100bn (£70bn) over the past decade.

As Chancellor Rishi Sunak called on world leaders to back a new tech tax ahead of next week’s G7 summit in the UK, a report by the campaign group Fair Tax Foundation singled out Amazon, Facebook, Google’s owner, Alphabet, Netflix, Apple and Microsoft.

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Work is where your laptop is: meet the globetrotting digital nomads

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Worldwide shift to flexible and home working in pandemic has led to rise of new kind of backpacker

Samantha Scott does not miss her daily commutes in London, particularly “the dread of having to wake up and get on the tube, and heading into work sweaty and flustered. I’m still waking up at 6 or 7am, but I’m able to go for a walk on the beach before I start work.”

When she and her partner Chris Cerra arrive with their luggage in a new city, they can easily be mistaken for tourists. But they are part of a new generation of “digital nomads” who hop from country to country to live and work.

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‘It’s just the beginning’: Covid push to digital boosts big tech profits

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Apple, Google owner Alphabet, Amazon, Facebook and Microsoft raked in money in first quarter

Big tech is on a roll. In every minute of the first three months of 2021, Apple, Google owner Alphabet, Amazon, Facebook and Microsoft sold products and services worth about $2.5m (£1.8m) combined. Profits before tax for the period came in at $88bn – more than $1bn of profit for every working day.

After a year of shifting to online work and leisure across the global economy, financial results published this week by most of US tech’s biggest names were bound to be strong. But even more bullish analysts on Wall Street were surprised by how fast they raked in money in the quarter, auguring even greater profits in the years ahead.

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Whitest-ever paint could help cool heating Earth, study shows

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New paint reflects 98% of sunlight as well as radiating infrared heat into space, reducing need for air conditioning

The whitest-ever paint has been produced by academic researchers, with the aim of boosting the cooling of buildings and tackling the climate crisis.

The new paint reflects 98% of sunlight as well as radiating infrared heat through the atmosphere into space. In tests, it cooled surfaces by 4.5C below the ambient temperature, even in strong sunlight. The researchers said the paint could be on the market in one or two years.

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Covid listener surge sees podcast firm’s results perking up

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Shares and revenues at UK-based Audioboom are soaring despite stiff competition from the world’s digital giants

A year ago, podcast producer Audioboom was facing an uncertain future as management sought, ultimately unsuccessfully, to find a buyer to inject cash to expand the business. When the company gives its latest financial update this week, it will be telling a very different story: in the past 12 months its market value has more than tripled and a maiden profit is looming as Audioboom joins the ranks of the pandemic winners.

Digital entertainment services from Netflix to Spotify have been supercharged by lockdown viewing and listening, and Audioboom has been no exception. It now draws 25 million listeners a month with content from partners ranging from Formula One to the former Bake Off presenter Sue Perkins.

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Prince Harry joins $1bn Silicon Valley startup as senior executive

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Duke of Sussex’s first formal role since ending royal duties involves ‘meaty role’ as chief impact officer at BetterUp

Prince Harry has been given a job by a $1bn (£730m) Silicon Valley startup which provides professional coaching, mental health advice and “immersive learning” as its chief impact officer.

The Duke of Sussex said he hoped to be able to use his own experiences using the “the power of transforming pain into purpose” to help BetterUp’s clients with “proactive coaching” for personal development, as well as achieve “an all-round better life”.

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From Tipperary to Silicon Valley: how Stripe became vital cog in digital economy

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Brothers Patrick and John Collison’s online payments empire is now valued at $95bn

The latest fundraising round by the digital payments firm Stripe has boosted the net worth of its co-founders, Patrick and John Collison, to about $11.5bn (£8.3bn) each, catapulting them into the top bracket of the world’s millennial billionaires. Not bad for two brothers from the tiny Tipperary village of Dromineer, population: barely 100.

Related: Silicon Valley's Stripe valued at $95bn after fundraising

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Nvidia’s new gaming software puts brakes on mining cryptocurrency

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Artificial constraint highlights struggle to keep up with demand from cryptocurrency miners

The newest graphics cards from the gaming processor designer Nvidia will be artificially constrained in their ability to mine cryptocurrencies, the company has announced, as it desperately tries to manage a year-long inability to satisfy demand.

The RTX 3060, a high-powered PC peripheral designed to let gamers get the best performance from their machines, will ship with software that makes it half as effective at mining the cryptocurrency Ethereum as it could be.

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Is big tech now just too big to stomach?

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The Covid crisis has turbo-charged profits and share prices. But are the big six now too powerful for regulators to ignore?

The coronavirus pandemic has wrought economic disruption on a global scale, but one sector has marched on throughout the chaos: big tech.

Further evidence of the industry’s relentless progress has come in recent weeks with the news that Apple and Amazon both raked in sales of $100bn (£72bn) over the past three months – 25% more than Tesco brings in over a full year.

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Bezos leaves Amazon in its prime – keeping it that way is the task

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Analysis: Running the online retailer should be a dream job, but where and how to grow will challenge Andy Jassy

A pain-free departure of a visionary founder is a difficult trick to pull off for any business. The stakes are even higher for a company the size of Amazon, as Jeff Bezos steps back from his day-to-day management role.

The decision by Bezos, 57, to quit as chief executive later this year took analysts by surprise, but the first step has already gone smoothly, with Andy Jassy appointed as his successor without any public power struggle.

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Thousands apply to be a Finn for 90 days in migration scheme

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Americans, Canadians and Britons among those lured by campaign to attract foreign tech workers

Finland has received more than 5,300 applications in a month for a groundbreaking scheme offering foreign tech workers and their families the chance to relocate to the Nordic country for 90 days to see if they want to make the move permanent.

“We’re not top of many relocation lists, but we know once people do come, they tend to stay,” said Johanna Huurre, of Helsinki Business Hub which devised the campaign. “There’s huge competition globally for talent, so we had to think creatively.”

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Cyberpunk 2077: how 2020’s biggest video game launch turned into a shambles

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Starring Keanu Reeves and hyped to the heavens, Projekt Red’s dystopian but glitchy romp has been pulled from sale. What went wrong?

Cyberpunk 2077, one of the most-anticipated video games of the year was released last week. A dystopian romp around a Blade Runner-inspired city, it had all the ingredients for a perfect storm of hype: it’s been nearly a decade in the making; its creator, Warsaw’s CD Projekt Red, was behind one of the greatest games of the last decade (The Witcher 3 – think Game of Thrones but grimier); it stars Keanu Reeves, who is as popular with gamers as he is with everybody else. Eight million people had pre-ordered and paid for the game before it came out. But since 10 December, it’s all gone horribly wrong.

On launch day, the reviews were good – great, even. Many critics praised the fictional Night City’s realism, its striking skyscraping architecture and grubby alleys; they loved the invigorating gunplay, ballsy characters and neon swagger. Some expressed reservations about the game’s rather adolescent tone and its eagerness to objectify women’s bodies – neither of which were a surprise to anyone who’d been keeping an eye on the game’s marketing.

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Xbox’s Phil Spencer: ‘We’re not driven by how many consoles we sell’

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As the Xbox Series X and Series S are released, Microsoft gaming chief Phil Spencer says the next games generation is all about how many players you have, not how many consoles you shift

The launch of the Xbox Series X this week marked the start of a new video game console generation – historically a super-exciting time for players, as better technology unlocks new dimensions for games. But despite the usual competitive crowing about teraflops, frame rates and resolutions, there’s a different dimension to the console wars this time around. The looming Netflix-ification of video games threatens to upend the whole idea of video game consoles. Amazon and Google are both working on game streaming services that let people play cutting-edge games without paying for a box that sits under the TV. And Microsoft has spent the past five years spending billions on game developers to shore up its star service: Xbox Game Pass, a monthly subscription that lets you play hundreds of games for a monthly fee.

It’s been clear for a while that Microsoft sees the future of gaming in subscriptions, streaming and services. Phil Spencer, the head of Xbox since 2014, is known to players as the guy who shows up on stage at press conferences in video-game T-shirts. Under his leadership, Microsoft has massively broadened its stable of game developers, started selling Xbox games on PC, and engineered its own streaming service to let people play on any screen, known in prototype as Project xCloud. Subs and streaming have already transformed other creative industries, with varying effects on artists – Spotify has been a disaster for musicians, where Netflix has arguably been good news for TV producers. With Microsoft already clearly committed to this direction of travel, what will its effect be on the games industry?

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Big tech accused of avoiding $2.8bn in tax to poorest countries

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Reform of international corporate taxation could transform health and education, says report

Big US technology companies are exploiting loopholes in global tax rules to avoid paying as much as $2.8bn (£2.1bn) tax a year in developing countries, according to research by the anti-poverty charity ActionAid International.

Facebook, Google and Microsoft have been accused of failing to pay a fair amount of taxes in poor countries where governments are struggling to provide even basic healthcare or education to their citizens.

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A bubble? The stellar growth of China’s e-commerce upstart Pinduoduo

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At $114bn, its market value is above HSBC – but questions remain about business model and if it will ever be profitable

It is a company that is just about to turn five years old but is valued more highly than the oil giant Shell, or HSBC, one of the largest banks in the world.

Pinduoduo is the latest behemoth produced by China’s tech machine, an online shopping site that specialises in extraordinary discounts on everything from tissues to Teslas. And its market value has more than doubled in recent months to $114bn (£87bn).

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Stock markets boom as hopes rise for US economic stimulus and Covid-19 vaccine

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S&P edges towards all-time record with oil prices and hospitality stocks rising as investor optimism rebounds

US stock markets moved closer to record highs on Tuesday after investors bet on a fresh round of government spending to lift the economy and counter the effects of the Covid-19 pandemic.

The S&P 500, seen as the broadest measure of US investor sentiment, raced to a 10-point gain by mid afternoon to leave it just 16 points short of the all-time high reached in February.

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Apple update to allow iPhone users to choose default apps

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Move in autumn will let users set Gmail as default email app and Firefox as main web browser

iPhone users will be able to set Gmail as their default email app, Firefox as their main web browser, and listen to Spotify on their HomePod speakers, after Apple announced concessions to competitors who argue the company is abusing its monopoly.

The new openness will arrive with a wave of software updates in the autumn, Apple said, alongside the other new features the company promised at its Worldwide Developers Conference, held remotely from Cupertino, California, on Monday.

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