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Microsoft backs GM's $30bn driverless car project

Cruise
Cruise

Microsoft has invested in General Motors' driverless car company Cruise, joining a $2bn (£1.5bn) funding round that marks its biggest foray yet into the sector.

The tech juggernaut was among a group of companies including Honda and GM itself that took part in the round, swelling Cruise's valuation to $30bn from $19bn in 2019.

The deal also included a strategic partnership with Microsoft to use its Azure cloud service for its autonomous vehicles, speeding up the widespread adoption of the technology.

Cruise's funding round comes just weeks after British company Oxbotica raised $47m, including backing from BP.

CB Insights last month released a report into the sector, saying "private companies working in auto tech are attracting record levels of deals and funding". It said "autonomous driving start-ups [were] leading the charge".

Satya Nadella, Microsoft's chief executive, said: “Advances in digital technology are redefining every aspect of our work and life, including how we move people and goods.

“As Cruise and GM’s preferred cloud, we will apply the power of Azure to help them scale and make autonomous transportation mainstream.”

Microsoft shares rose by about 1pc, while GM's shares rose by 3pc.

Unlike its rivals Google and Amazon, which both own autonomous vehicle companies, or Apple, which reportedly has its own programme, Microsoft has so far not attempted its own driverless cars.

But it has been slowly moving into that area, signing a similar deal with London-based car artificial intelligence firm Wayve to use Azure for their research and development.

The tech giant's connected vehicle software, built on Azure, has has been adopted by Renault Nissan and Volkswagen, helping cars exchange large amounts of information with each other and with home servers.

Cruise, which is based in San Francisco, was bought by GM for $1bn in 2016. It has so far built a fully driverless prototype car called Cruise Origin, with no steering wheel or other human controls, which is slated to be produced by GM in Detroit.

The company has been testing cars in San Francisco for several years, but has not yet delivered a promised robo-taxi service.

GM's innovation strategy has gained favour with investors over the past year, driving the company's shares up by about 50pc from their pre-pandemic norm.


06:10 PM

Tech funding in London hit a high last year

Despite the global pandemic and the UK’s exit from the European Union, London tech firms raised $10.5bn in 2020 according to new research from London and Partners, which is part of the Mayor of London's office.

That is significantly more than the total amount raised in 2017 ($7bn) and 2018 ($5.9bn) and close to the record in 2019 ($10.7bn).

Investors from North America represented the largest share of venture capital funding into London (between 2019-2020) with 36pc of investment coming from VC firms headquartered in the USA and Canada.


05:35 PM

FireEye offers free SolarWinds hacker tool

Cybersecurity company FireEye is offering a free tool for companies who fear they may have been impacted by the SolarWinds hack, which impacted the US government.

Companies who fear their Microsoft Azure services might have been impacted can now use the Azure AD Investigator to see if the SolarWinds hackers got inside their networks.

The hack was discovered on December 13. It impacted 18,000 SolarWinds customers who installed an app that had malware attached to it, allowing hackers to search for networks they wanted to infiltrate, focusing on Microsoft 365 software.

The FBI has blamed Russia for the attack.


03:53 PM

Brussels could penalise Big Tech firms if bosses are no-shows

Big Tech has faced increasing regulatory scrutiny in many countries recent years, and more and more often it seems them required to appear before politicians to justify certain decisions.

But, it is a rare occasion when the bosses of companies including Facebook, Apple, Amazon and Google are the ones attending the grilling.

Now, Brussels may be about to put its foot down.

According to The Financial Times, the European parliament is considering imposing sanctions on Big Tech firms who do not send their CEOs to appear before hearings, and instead choose to send legal experts or policy chiefs.

The newspaper said MEPs were finalising an invitation to Google, Amazon, Facebook and Apple to discuss competition policy. They are reportedly considering sanctions against companies if they don't send their most senior executive, potentially blocking their lobbyists from future meetings.

It comes amid growing concerns over the reach of Big Tech across the world, with the pandemic having only made them more important to societies.

The EU last year outlined new "gatekeeper" plans to fine companies if they favoured their own services, for example a search engine ranking its own services higher than rivals.


03:18 PM

India asks WhatsApp to backtrack on privacy policy

Indian officials have reportedly written to messaging app WhatsApp to ask it to U-Turn on a planned privacy policy update.

According to TechCrunch, which obtained a copy of the email, officials from India's IT ministry said they had "grave concerns regarding the implications for the choice and autonomy of Indian citizens" over the WhatsApp update.

"Therefore, you are called upon to withdraw the proposed changes," they told WhatsApp.

WhatsApp has found itself at the centre of a row over the policy change, which users were asked to agree to earlier this month.

The policy allows it to share more data between Facebook and WhatsApp, specifically stating that messages between users of the chat app and companies could be stored with Facebook and used to inform adverts on its other social networks.

WhatsApp has said there would be no change for UK and EU users outside business messaging, although they were required to still agree to the terms.

The Indian ministry said: "Such a differential treatment is prejudicial to the interests of Indian users and is viewed with serious concern by the government."

India is the largest market for WhatsApp by user numbers.


02:49 PM

Microsoft backs GM-owned driverless car firm Cruise

Cruise

Microsoft has invested in San Francisco driverless car company Cruise, marking its first major foray into the sector.

Microsoft was among a group of companies investing $2bn in Cruise, a start-up which is majority owned by General Motors. GM also took part in the round, as well as Honda.

The deal took Cruise's valuation to $30bn, a significant jump from around $19bn in 2019.

It also included a strategic partnership with Microsoft, to use its Azure cloud service for its autonomous vehicles.

Cruise's funding round comes just weeks after British company Oxbotica raised $47m, including backing from BP.

CB Insights last month released a report into the sector, saying "private companies working in auto tech are attracting record levels of deals and funding". It said "autonomous driving start-ups [were] leading the charge".


01:42 PM

Online greeting card company Moonpig confirms £1.2bn float

Moonpig

Moonpig today confirmed it would be joining the London Stock Exchange next month with an expected £1.2bn valuation.

It comes after the online retailer received a boost from the pandemic, as millions stayed away from shops and instead bought cards and gifts online.

Moonpig said it had added one million new customers in the first eight weeks of the March lockdown, whilst revenues hit £173m in the year to April 2020.

Its private equity owner Exponent is expected to float around a quarter of shares in the company.

Moonpig boss Nickyl Raithatha said: “As the market leading platform, with a strong track record, and a huge opportunity to grow, we are confident about our decision to become a publicly traded business."


01:12 PM

Scientists produce electric car batteries which can charge in just five minutes

Earlier today, my colleague Michael Cogley reported on the electric car battery that could be charged in just five minutes.

The breakthrough was hailed as a “significant milestone” ahead of a ban on the sale of new petrol and diesel cars in the UK from 2030.

Israeli battery company StoreDot demonstrated how its batteries can be used to charge electric vehicles, having previously proved the technology worked with drones and electric scooters.

Typically electric car drivers can add up to 100 miles of range in 35 minutes using a 50kw rapid charger. StoreDot is aiming to deliver 100 miles of range within five minutes by 2025, based on the existing charging infrastructure available today.

It will likely alleviate some concerns among drivers over opting for the vehicles, with both charging times and so-called" range anxiety", where they fear they will run out of power, seen as key stumbling blocks to adoption.

The UK's competition watchdog is currently reviewing the electric charging market, seeing it as crucial to the country's climate ambitions.


12:40 PM

Bill Gates-backed fund raises $1bn for clean tech start-ups

Bill Gates - NICHOLAS KAMM/AFP

Breakthrough Energy Ventures, the venture capital firm backed by Bill Gates, has raised $1bn (£730m) for a flurry of new investments in the climate space.

BEV is expecting to pour the latest cash into between 40 and 50 start-ups, with a particular focus on "tougher climate challenges” such as long-haul transport and using hydrogen.

BEV has previously backed businesses developing things such as lithium mining and zero-carbon steel.

One of its portfolio companies, Boston Metal, is operating in this space and earlier this month raised a further $50m with the aim of licencing its technology to steel manufacturers in as little as five years time.

It comes as countries, including the UK, set ambitious targets to help lower their carbon footprint within the coming years.

Britain is planning to reach net zero carbon emissions by 2050, and late last year set aside £12bn of public investment to help meet that goal.


12:05 PM

Netflix posied to report subscriber rebound

Netflix is reporting its fourth quarter earnings later today, with the market anticipating a bumper trading update.

The streaming giant is expected to say it added six million subscribers during the last three months of 2020. This would mark a rebound on the quarter before when subscriber growth came in shy of analysts’ forecasts by slowing to 2.2 million.

Susannah Streeter, analyst at Hargreaves Lansdown, said:

“With fresh lockdowns being brought in during the winter, cinemas are once again out of bounds for entertainment seekers, and the demand for content from the comfort of the sofa is likely to have risen again.”


11:35 AM

Competition watchdog calls for examples on algorithm misuse

Big Tech

The UK's competition watchdog has asked for evidence of "deliberate or unintended misuse of algorithms", amid growing concerns that companies are duping consumers into choosing certain products.

The Competition & Markets Authority said it was seeking advice from academics and industry experts into "the potential harms to competition and consumers" from algorithms.

It follows research by the CMA into the area which found that "algorithms can be used to personalise services in ways that are difficult to detect, leading to search results that can be manipulated to reduce choice or artificially change consumers’ perceptions".

The watchdog said an example of this was misleading messages to suggest a product was in short supply, and so prompt consumers to make a purchase quickly.

The area, the CMA said, was currently subject to little or no regulatory oversight. The evidence is expected to feed into how a new digital watchdog, which will be part of the CMA, will police the space.


11:06 AM

Music labels 'beating' Big Tech in lack of clarity and openness, MPs say

Music labels are coming in for tough questioning from MPs in a parliamentary committee meeting this morning, with the chairman of the DCMS committee Julian Knight accusing the companies of being more opaque than Big Tech firms.

Mr Knight pointed to earlier sessions with companies including Google and Facebook, where MPs had struggled to get answers to questions.

"So far, I have to say you're beating them to the prize in terms of lack of clarity and openness to a parliamentary committee," Mr Knight said.

David Joseph, CEO of Universal Music UK, was asked the same question over how much artists received when their music was licensed to Spotify multiple times.

The session, which also included representatives from Warner and Sony, comes as part of a committee probe into the effect of streaming on the music industry.


10:24 AM

Deliveroo bulks up board ahead of blockbuster float

Deliveroo has appointed Lord Simon Wolfson, the chief executive of Next, to its board as it gears up for an anticipated £8bn float, writes Matthew Field.

Lord Wolfson started at the food delivery company this week and is the latest boardroom appointment for Deliveroo, which added Ocado director Claudia Arney as its chairman late last year.

It comes after Deliveroo confirmed it had raised £130m on Sunday, valuing the British food delivery company at £5bn.

Founded by former investment banker Will Shu, Deliveroo is said to be targeting an April float. The company has expanded its takeaway app to 800 towns and cities worldwide with 110,000 freelance food delivery riders.

Analysts have estimated the company could be valued at more than £8bn, which could make it the largest City float in almost a decade.

Despite warning it was close to collapse last year after a major investment by Amazon was held up by the competition watchdog, Deliveroo has rebounded strongly during the coronavirus pandemic and has said it recorded an operating profit for the last six months.

Mr Shu said Lord Wolfson would bring “great knowledge and insight” to the food delivery firm.

Lord Wolfson - Next
Lord Wolfson - Next

Lord Wolfson has navigated Next through the coronavirus pandemic, with the high street clothes retailer performing relatively well compared to its peers. It has forecast pre-tax profits of £670m for the next financial year.

Over the Christmas period, total full priced sales at Next fell just 0.5pc thanks to strong digital sales performance, which grew 38pc. The retailer is part of a consortium in the running to buy Topshop as part of the administration of Sir Philip Green’s Arcadia group.

Lord Wolfson said: “I am delighted to be taking up this role. Deliveroo is an exciting, innovative and fast-growing company that, like Next, relies on advanced technology to deliver a market-leading proposition.”


10:05 AM

Electric car prices 'must drop below £20,000 to win over drivers'

Tesla's work to make batteries with a longer range may not be enough in itself to tempt some to opt for electric cars, though, new research has shown.

As Industry Editor Alan Tovey reports:

"Electric cars need to drop in price by at least a fifth – about £5,000 – to spark sufficient interest from motorists, according to new research.

"The cost of a new zero-emissions car will need to fall below the £20,000 barrier, according to Deloitte, which found that such prices would cause the largest number of drivers to consider buying one of the environmentally-friendly vehicles.

"Some 29pc of drivers said they would splash out on an electric car if it was priced below £20,000, while a more frugal 13pc said they would wait until they dropped to £10,000 or less."

Read the piece in full here.


09:39 AM

Blue skies funding agency 'could come as soon as summer'

Dominic Cummings - HANNAH MCKAY/Reuters

Britain's "blue skies" research agency could launch before the summer, according to reports, following claims the project had been set back by the departure of Dominic Cummings from Downing Street.

The agency, which will be modelled on the US Defense Advanced Research Projects Agency, is currently in the process of being created.

New Scientist said the Government was keen to have it be split out from the current UKRI organisation, which has been responsible for managing government research funding. It said the Government was planning a recruitment campaign for its first director to happen before summer.

Sources had previously told the Telegraph that a lot of policy work was still ongoing.

Doubt had been cast over the agency, given it had been the brainchild of Dominic Cummings, who left his Downing Street post last year.

Ian Campbell, the former head of UKRI's Innovate UK agency, had said: "His leaving may reduce government interest and spend in this area, which would be hugely negative.”

However, insiders had argued that the money was there to set it up. Funding was confirmed in the Spending Review. A spokesman for BEIS said: "The UK’s new blue-skies research agency will have the independence to experiment with new funding models to back cutting-edge, high-risk, high-reward science here in the UK.

“The Government continues to progress plans to establish the agency as soon as possible, backed with at least £800m in funding.”


09:06 AM

European data fines spike by 40pc

European data protection fines came in almost 40pc higher last year as regulators took a hard line on breaches.

Figures out from DLA Piper this morning showed around £245m of fines were imposed for infringements of European data protection laws over 2020, up 39pc on the previous 20-month period since the application of GDPR.

GDPR laws apply across the European Union, as well as in the UK, Norway, Iceland and Liechtenstein, and give more power to consumers over who holds their data and how it is used.

In the UK, for example, British Airways was fined after hundreds of thousands of customers’ financial and personal details were stolen during a cyber attack in 2018.

However, the size of the fine was significantly smaller than had initially been planned. The UK's data watchdog, the Information Commissioner's Office, had laid out plans to fine the airline a record £183.3m - but in October, said BA would now be fined just £20m after speaking to the airline about "the economic impact of Covid-19 on their business before setting a final penalty".

Ewa Kurowska-Tober, from DLA Piper, said: "Regulators have been testing the limits of their powers this year issuing fines for a wide variety of infringements of Europe’s tough data protection laws.

"But they certainly haven’t had things all their own way with some notable successful appeals and large reductions in proposed fines. Given the large sums involved and the risk of follow-on claims for compensation we expect to see the trend of more appeals and more robust defences of enforcement action continue."


08:29 AM

Parler re-emerged with help from Russian-owned tech firm

Russian-owned technology company DDoS-Guard helped bring "free speech social network" Parler back online, reports have claimed.

Parler was taken down earlier this month after Amazon said it would no longer be hosting the site following concerns over its content in the wake of the Capitol riots.

Its app was also removed off Apple and Google stores. Downloads had surged in the wake of the attacks.

However, the site re-emerged in recent days, with Parler CEO John Matze posting a message saying: "Hello world, is this thing on?"

Parler's app remained unavailable.

Reuters said the internet protocol address the site used was owned by DDos-Guard, an organisation which offers protection from hackers and is owned by two Russian men.

DDoS-Guard and Parler did not reply to requests for comment on the report.


08:04 AM

Tesla boss Elon Musk unveils battery production line

Tesla has offered a glimpse into its battery production factories with a short video that boss Elon Musk says shows how the company is "literally trying to make full-size cars in the same way toy cars are made".

Tesla's video showed production lines at its Giga factories, where it is working on battery technology that can power its electric cars.

The "tabless cells" that Tesla is developing are expected to hold significantly more charge and have around 16pc extra range.

Altogether, Tesla is hoping to increase vehicle range by 54pc, with each kilowatt hour costing about 56pc less.

The concept behind the cells was first unveiled at Tesla's "Battery Day" last year, although at the time no batteries were shown.

Mr Musk said battery cell production was the "fundamental ratelimiter slowing down a sustainable energy future".


07:31 AM

Five things to start your day

1) Social media giants criticised for 'double standards' after failing to ban populists overseas​ The sites have been accused of inconsistent moderation over which profiles they take down.

2) The high-stakes race to create the ultimate quantum computer Quantum computing stands to leap forward this year, with US and China leading the race.

3) New electric car battery can charge in 10 minutes and keep going for 250 miles, scientists say​ The new lithium ion phosphate batteries can quickly heat up and cool down - which is the key to rapid charging and long life.

4) CPS writes official guide to online dating for prosecutors​ A raft of jargon is explained in a new official guide to online dating for prosecutors to help them relate to sexual assault victims.

5) Epik: The domain registrar keeping extremist websites online De-platformed sites are finding safe harbour with a Washington based web hosting company.