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Apple destroyed the mid-tier watch market. Now it’s coming for the $200 billion eyewear industry.

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TL;DR

Apple plans to disrupt the $200B eyewear market the way it disrupted watches. Swatch fell 28%, Fossil 70%. Smart glasses are targeting late 2027.

When Apple launched the Apple Watch in 2015, the mid-tier wristwatch market had a handful of dominant companies. Swatch Group sold watches under Tissot, Hamilton, and Longines. Fossil Group sold under Michael Kors, Armani, and Kate Spade. Movado sold under Coach, Hugo Boss, and Tommy Hilfiger.

Ten years later, the damage is quantifiable. Swatch’s revenue is 28% lower in 2025 than it was in 2014. Fossil’s sales dropped roughly 70%. Apple became the world’s largest watchmaker by unit volume within a few years and last year overtook Rolex as the number one watch brand by revenue. The Apple Watch now generates an estimated $17 billion annually.

Bloomberg’s Mark Gurman reports that Apple is planning the same playbook for glasses. The company sees the $200 billion global eyewear market as a bigger opportunity than watches and intends to compete directly with products sold between $200 and $500, a segment dominated by EssilorLuxottica (Ray-Ban, Oakley, Persol, Oliver Peoples), Safilo Group (Tommy Hilfiger, Hugo Boss), and Warby Parker.

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The addressable market is staggering. The WHO estimates 2.2 billion people globally have some form of vision impairment. Hundreds of millions of pairs of glasses are sold each year. Apple believes its brand, industrial design, iPhone integration, and AI features will lead people seeking new regular glasses to buy an Apple pair instead.

The first Apple glasses, codenamed N50, were initially planned for late 2026 with shipping by early 2027. Delays have pushed the timeline to a launch at the end of 2027, Gurman reports. The product will use oval-shaped cameras, unique colours, and multiple frame styles. Over time, Apple believes the glasses could become a health device and eventually incorporate augmented reality.

Meta has a substantial head start. It sold more than seven million Ray-Ban smart glasses in 2025 and commands roughly 82% of the smart glasses market. It has retail partnerships with LensCrafters and is steadily rolling out new models, with more coming in June. Meta also leads on AI features and has the advantage of working with Android, which remains larger than iOS globally.

Apple’s historical refusal to support Android gives Meta an opportunity to own that side of the market permanently. Ironically, Apple’s entry could benefit Meta by generating broader consumer excitement about smart glasses, with Android users then steered toward Meta’s models.

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Meta is also expanding its wearables strategy beyond glasses. A leaked internal memo this week confirmed the company is developing an AI pendant and a “Wearables for Work” enterprise subscription. The competitive landscape is widening before Apple’s product even ships.

The risk for Apple is timing. Every month of delay gives Meta more users, more retail presence, and more data on what consumers want from smart glasses. The product depends on a revamped Siri that has already been delayed for two years. The new Siri app in iOS 27 may still launch as a beta.

Tim Cook has described the glasses as his top priority. Incoming CEO John Ternus is the driving force behind the project. The Vision Products Group developing the glasses has operated under his leadership for the past two years. The support from Apple’s highest levels is not in question. The execution timeline is.

Not all eyewear companies need to worry. High-fashion brands selling glasses for thousands of dollars, names like Cartier, Lindberg, Jacques Marie Mage, and Maison Bonnet, will likely continue to thrive. Apple never had a meaningful impact on the luxury watch market despite its attempt at $10,000 gold Apple Watches. Rolex generated an estimated $14 billion in revenue last year, more than double its sales from a decade earlier.

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The target is the mass market, not the luxury segment. Apple is going after EssilorLuxottica, Safilo, and Warby Parker the way it went after Swatch, Fossil, and Movado. The pattern is clear: enter an established consumer product market, offer something that integrates with the iPhone, and wait for the incumbents’ revenue to decline.

Apple’s Watch business is itself facing new competitive pressure from screenless wearables like Whoop, Oura, and Google’s Fitbit Air. The company needs a new hardware growth category. Glasses, if executed well, could be it. The addressable market is not millions of users. It is billions.

Gurman also reported that iOS 27’s Siri app will sync conversations across devices via iCloud. Early work on iOS 28 (codenamed Bell) and macOS 28 (codenamed Poppy) has begun, with next year’s releases expected to be “far more significant” than the iOS 27 updates. A new Apple TV set-top box and HomePod mini are nearly ready, having been delayed for months to launch alongside the new Siri.

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When the Trump administration cracks down on Anthropic, who benefits?

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Anthropic recently took its two newest AI models offline due to an export control order from the Trump administration, prompting broad debates about AI policy and digital sovereignty.

On the latest episode of TechCrunch’s Equity podcast, Sean O’Kane, Rebecca Bellan, and I discussed what actually prompted the administration’s moves against Anthropic, and what this might mean for the broader AI ecosystem.

As Sean put it, “Anthropic has not had the best relationship with the Trump administration in a way that stands apart from the other leading AI labs,” so perhaps other Anthropic’s rivals don’t need to worry about a similar crackdown.

But Rebecca also noted that leading cybersecurity experts have “signed an open letter to ask Trump to revoke the order, and they say it’s actually dangerous to have to pull these advanced cybersecurity capabilities from network defenders in the U.S.”

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And we wondered whether this could all end up being good publicity for Anthropic, especially since — in Rebecca’s words — “everybody loves a bad boy.”

Keep reading for a preview of our conversation, edited for length and clarity.

Rebecca Bellan: As I’m sure many of our listeners know, the U.S. government basically just forced Anthropic to pull its two newest models offline — Fable 5, and then there was also Mythos 5, which was the one that was available to current Mythos users, [whereas] Fable 5 was more available to the public.

They sent a letter [last] Friday that cited “national security concerns.” No one knows what those concerns are. That report has not been made public, they gave no specifics and told [Anthropic] that they had to ensure that those models couldn’t be used by any foreign nationals. So Anthropic was like, “Okay, I guess we have to just pull the models entirely, because we don’t know when someone’s a foreign national. A lot of our own employees are foreigners.” 

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But really, [reports said] the White House got tipped off to this because of some Amazon researchers that allegedly found a way to bypass Fable 5’s guardrails. Amazon CEO Andy Jassy raised these concerns with the White House, and it just kind of spiraled from there.

Sean O’Kane: This all moved really fast, especially for a Friday afternoon into a weekend. And it’s at the same time that the administration was ostensibly trying to negotiate some sort of treaty for the war that it started in Iran. 

Rebecca: Friday evening for us in New York. They love a distraction.

Sean: Let’s step real far back for a moment. Anthropic has not had the best relationship with the Trump administration in a way that stands apart from the other leading AI labs — I think there’s an element, at least, of that playing here. 

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So do you think that this is going to have implications for those other companies? Do you think that the Trump administration would be less inclined to sort of turn off the tap on one of those competitors?

Anthony Ha: Part of the context here is that both the reporting and an analysis from independent security experts suggest that the actual security risk from Anthropic is not that unique. So a lot of this seems to stem as much from parts of the Trump administration and Anthropic just [not getting] along very well. Whatever risks there are, those things are gonna blow up out of proportion just because it seems like they can’t have a civil phone call with each other.

If you’re another company — on the one hand, maybe that’s advantageous to you, because you can say, “Well, we just don’t get these guys mad at us and we can do what we want.” But that’s also not a great regulatory landscape to just [say], “Boy, I hope they don’t get mad at us.”

Rebecca: On the one hand, it definitely feels retaliatory — after the government labeled Anthropic a supply chain risk, there’s this big lawsuit going on between them, it really feels like the White House is just looking out for any excuse to pummel Anthropic. And I feel that way not only because that was my initial reaction, but because of what a lot of cybersecurity researchers have said. They say that this should never have triggered an export control [order]. They’ve all signed an open letter to ask Trump to revoke the order, and they say it’s actually dangerous to have to pull these advanced cybersecurity capabilities from network defenders in the U.S. Anthropic itself said some of the same jailbreaks could have been found in several other AI models. 

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Cynically, it’s like: Okay, are you just pausing Anthropic so that others can catch up to where Anthropic was?

But at the same time, I’ve also seen reactions that [say]: Anthropic kinda had this coming. They’re like, “This is too dangerous for anyone to use, but not us, we’re the good guys.” They’re talking out of both sides of their mouth. A week before Fable came out, they were [saying], “Hey, we need to slow down AI, guys. It’s getting really dangerous.” But then boom, “Here’s our most insane ever, super powerful model, go off.” 

Anthony: In some ways this feels like a microcosm of a lot of the discussion around AI, where people like Sam Altman and Jensen Huang are [saying], “Hey, let’s try to lower the temperature. Why is everybody mad at us?” Well, you spent the last couple years essentially saying you’ve built this God machine that will take jobs away from everyone. It’s not exactly a shock that people don’t feel great about this.

And there’s something about the way Anthropic talks about Mythos in particular, where they’re like, “This is the most incredibly powerful model ever, it’s too dangerous to release to the public.” And so on some level, [you say,] “Well, okay, let’s say that we take that seriously then. That means that there’s going to be an incredible level of scrutiny around it.”

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And I do wonder — it does seem like Anthropic is not happy about this. I want to be careful about not overstating how this could be beneficial to them. But we also ran some stories about Ramp analysis to highlight the fact that the last big blow-up between Anthropic and the Trump administration was good for the company, in at least some ways. Downloads of Claude shot up. I think a lot of people who maybe had thought of ChatGPT as the chatbot, the AI assistant before, suddenly they were looking at Claude as maybe the more responsible one, the more “resistance” one.

And in the same way, [while] Anthropic is very stressed out about this, this could, again, make their models seem even more powerful.

Rebecca: Definitely. “We’re so dangerous.” Everyone loves a bad boy, right? Everyone’s like, “It’s the most powerful model, even Trump says so. Of course, I’ve got to get my hands on it.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

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The Secret Revolution in Battery Technology: 3-D Printing

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“There’s a revolution in battery technology hiding in plain sight,” reports The Wall Street Journal. “The 3-D printing of batteries has the potential to put energy storage inside any device.

“This will enable lightweight and long-lasting consumer gadgets, long-range military drones and even nanoscale robots.”
Almost all the innovations we regularly hear about — from cheaper, tougher electric-vehicle batteries to “Holy Grail” solid-state batteries — are about changing the chemistry of batteries. The promise of battery-tech 3-D printing (aka additive manufacturing) is simple: What if batteries could fill any available space, even structural elements of our gadgets, rather than always taking a rigid shape like a pouch or cylinder?

The new approach has obvious appeal. The entire airframe of a drone could be filled with energy storage for increased range. Smartglasses could have sleek battery-packed frames, so they look like everyday eyewear rather than “Revenge of the Nerds” props. One of the biggest advantages of 3-D printing is that it works with any battery, regardless of its cell chemistry. It could advance today’s lithium-ion as well as emerging sodium-ion and solid-state tech… Some [startups] are trying to use 3-D printing to create efficiencies in existing battery manufacturing systems. A brave handful of startups are pursuing radical new designs and approaches. They’re starting with defense applications, where cost and scale are less of an issue…

At Silicon Valley-based Sakuu… [r]ather than trying to 3-D-print whole batteries, the company is working on replacing one of battery manufacturing’s biggest pain points, says Arwed Niestroj, Sakuu’s chief operating officer, who is also a nuclear physicist and former head of Mercedes-Benz Research & Development North America. Existing battery assembly lines include football-field-long ovens for drying layers of material that have been dissolved in solvents. This requires a huge amount of energy and is a significant contributor to manufacturing costs, a big reason EV batteries aren’t cheaper. Sakuu’s process, under development for years, uses additive manufacturing to lay down key battery components without solvents, eliminating the need for ovens, says Niestroj.

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Sakuu is currently working to commercialize this tech with a major battery manufacturer…

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Hackaday Links: June 21, 2026

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Today marks the summer solstice, the longest day of the year and the start of astronomical summer in the Northern Hemisphere. This doesn’t really have much to do with hacking hardware or building gadgets other than the fact that from this point on you’ll have progressively less daylight hours to do it in each day. Of course, if you do your best work in the middle of the night this won’t impact things much.

If you’re as likely to find a controller in your hand as a soldering iron in the evenings, you might be interested in a recent filing against Sony. Lawyers representing a group of four gamers allege that the entertainment giant is violating a California law that says digital storefronts need to make it clear that buyers don’t technically own the games in question but are merely licensing them — a license which, as we’ve seen in the past, can be revoked or modified at any time with no restitution made to the purchaser.

Now while we agree conceptually that selling gamers a license rather than an actual copy of the game is clearly a one-sided deal, we’re still not sure this case has a lot of merit. As far as we can tell, Sony does make it clear in the fine print that you’re not really going to own anything once they take your money. Or, at the very least, they make it equally as clear as any other company that’s selling digital downloads these days. Should the court actually find that said fine print is a little too fine, it could conceivably have ramifications throughout the entertainment industry. This is certainly a case to keep an eye on.

If you want to be sure none of your games can be removed from your digital grasp without warning, perhaps your best bet is to stick to the classics. Fans of 1989’s F-15 Strike Eagle II on PC will be excited to hear that there’s an ongoing effort by Neuvieme Porte to reverse engineer the flight sim and re-implement the whole thing in portable C.

This would open up all sorts of possibilities, such as ports to other platforms and the addition of new features and content. But before the project can get to that point however, Neuvieme is looking to recruit some virtual test pilots. Just keep in mind that the goal, at least for now, is to recreate the game exactly. That means bugs present in the original release are to be preserved. As such, it would help to have logged enough hours back in the DOS days to recognize what’s an OG bug and what’s been newly introduced.

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From working on virtual jet fighters to the real deal, IEEE Spectrum recently ran an article about a startup called Phoenix Semiconductor that’s looking to produce bespoke pin-compatible replacements of critical chips for the military. They reason that the Air Force won’t mind paying $1,000 for a chip that cost them a buck back in 1975 when the alternative is grounding a $70+ million F-18 that needs the thing to take off. The goal isn’t really to recreate the old parts as they were, but instead to build drop-in replacements that are tailored for specific applications. In other words, Uncle Sam doesn’t care of the IC actually looks like the original, so long as it fits and it gets the jet up in the air again.

Finally, on the subject of aerospace technology, NASA’s Jet Propulsion Laboratory published a blog post earlier this week detailing their work on the Exploration Rover for Navigating Extreme Sloped Terrain (ERNEST). While NASA’s Curiosity and Perseverance rovers have done some incredible work on Mars, they’re slow and have to be operated with the utmost caution to make sure they don’t get stuck. In comparison, ERNEST is several times faster and is designed with an active suspension system that lets it lift each wheel up off the ground independently if needed.

The prototype rover also features improved autonomy that may allow future rovers make more decisions on their own. That may not be a huge time saver on the Moon, but given the communication delays with the Red Planet, a Mars rover that doesn’t have to stop and ask Earth for directions so often will be able to get more useful work done at the end of the day.

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See something interesting that you think would be a good fit for our weekly Links column? Drop us a line, we’d love to hear about it.

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Polymarket Has Reportedly Been Paying Creators To Post Fake Betting Videos

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The Wall Street Journal reviewed 1,105 videos along with guidance given to creators for crafting their posts.

In case you needed another reason to be wary of those videos showing people winning big on Polymarket, an investigation by The Wall Street Journal has found that the company is paying social media creators to post misleading content promoting the prediction market. Of the 1,105 TikTok videos the publication reviewed, 778 appeared to show someone placing a bet — but a closer look reportedly revealed that none of the latter featured the actual Polymarket website, instead using dummy sites made to look like the real thing.

For more than half of the videos that appeared to show winning bets, those bets would in reality have been losses, The Wall Street Journal reports. The publication spoke to creators who worked with Polymarket and viewed materials they say they were given to ensure their videos were convincing and engaging. In addition, Polymarket reportedly also enlisted a “social-media army” to repost these videos and help them go viral.

Polymarket has been making headlines this year as governments grapple with how to regulate prediction markets. Minnesota last month became the first US state to ban them. Other states have tried to do the same, but multiple lawsuits have challenged these efforts. Meanwhile, Spain blocked Polymarket and another prediction market, Kalshi, in May as it figures out whether they violate the country’s gambling law.

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How to watch New Zealand vs Egypt: Free Streams & TV Channels for World Cup 2026

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Mo Salah’s Egypt meet Chris Wood’s New Zealand at BC Place in Vancouver, with both teams looking to break away from the Group G bottleneck after all four sides opened their World Cup 2026 campaigns with draws.

Although Egypt performed well, especially defensively, in their opener against Belgium, they led for nearly two-thirds of the match before an own goal by Mohamed Hany, arguably caused by the impact of Romelu Lukaku’s introduction, brought Belgium level.

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NYT Connections hints and answers for Monday, June 22 (game #1107)

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Looking for a different day?

A new NYT Connections puzzle appears at midnight each day for your time zone – which means that some people are always playing ‘today’s game’ while others are playing ‘yesterday’s’. If you’re looking for Sunday’s puzzle instead then click here: NYT Connections hints and answers for Sunday, June 21 (game #1106).

Good morning! Let’s play Connections, the NYT’s clever word game that challenges you to group answers in various categories. It can be tough, so read on if you need Connections hints.

What should you do once you’ve finished? Why, play some more word games of course. I’ve also got daily Strands hints and answers and Quordle hints and answers articles if you need help for those too, while Marc’s Wordle today page covers the original viral word game.

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Nutanix’s Tech Day London 2026 offers infrastructure insights

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SPONSORED POST: Come join this working afternoon for infrastructure teams

Your hybrid estate has grown more complicated since the last refresh cycle. Some workloads run in the public cloud, others never left the rack, and a few sit stuck in transition because nobody wants to be the person who broke the database. Add AI to the pile and the platform questions only get harder.

Nutanix Tech Day is a half-day event designed to help the people who have to deal with increasingly complex infrastructure.

Date: Wednesday, June 24, 2026

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Time: 12pm to 6pm BST

Place: Prospero House, Southbank, London

Registration is free and includes lunch, refreshments, and time set aside for networking.

What you’ll learn

The agenda runs through the headline announcements and key takeaways from Nutanix .NEXT Chicago 2026. Then you’ll get technical sessions on disaster recovery, data sovereignty, hybrid multicloud management, operational automation, and enterprise AI use cases that have shifted from slideware into production budgets.

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The tracks split so you can pick the sessions aligned to your priorities and skip the rest. If you have ever sat through a vendor day waiting for the one talk relevant to your stack, try this instead.

Customer sessions are especially worth turning up for. The Bunker and London Gatwick Airport will walk attendees through what they have done with Nutanix in production, and talking to people who run the platform day to day is the cheapest form of due diligence you will find.

Who it’s for

This event is for infrastructure engineers, technical architects, systems administrators, and cloud professionals. Security and compliance leads have reason to attend too, given the disaster recovery and data sovereignty material on the agenda.

Why attend in person?

The event puts you in a room with peers tackling the same problems and with the engineers who have run these platforms in production, the kind of conversation that rarely transfers to a video call. You can put questions directly to Nutanix specialists in an interactive setting, which tends to be the part of these days that justifies the train fare.

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The 12pm start gives you half a day out of the office to meet some interesting people, lunch included, and a working list of things to try when you get back. The tote bag is optional.

Join Nutanix Tech Day London 2026

Discover practical insights from Nutanix experts and industry leaders on AI infrastructure, hybrid multicloud, modernisation, and operational resilience. Register now.

Sponsored by Nutanix.

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RENPHO Smart Scales are at their lowest price for Prime Day

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When did you last step off the scales feeling like you actually understood what the number meant, rather than just hoping it was moving in the right direction?

RENPHO Smart ScalesRENPHO Smart Scales

RENPHO Smart Scales are at their lowest price for Prime Day

RENPHO Smart Scales are at their lowest price for Prime Day

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The RENPHO MorphoScan Smart Body Scale is built to answer that question, using Bioelectrical Impedance Analysis to track over 13 metrics including muscle mass, visceral fat, body water percentage, and metabolic age alongside your weight.

It’s down to £89.99 from £109.99 during Prime Day, saving you £20 at its lowest price ever on Amazon, which makes this the most accessible the MorphoScan has been since it launched.

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Those metrics sync automatically over Bluetooth and Wi-Fi to the RENPHO app, which converts your readings into visual trend charts so you can see week on week whether your training is shifting body composition or just fluctuating water weight.

The app connects natively with Apple Health, Fitbit, and Google Fit, so the MorphoScan slots into whatever health ecosystem you’re already using without asking you to abandon anything you’ve built up.

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It also supports unlimited user profiles and recognises each family member automatically when they step on, meaning one device handles an entire household without anyone needing to manually switch accounts or scroll through a settings menu.

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The platform itself is built around high-precision sensors housed in a design that sits cleanly in a modern bathroom, so it doesn’t feel like a compromise between function and the way the room looks.

The fact that over 700 verified Amazon buyers have settled on a 4.2-star average for the MorphoScan is the kind of signal that matters more than a spec sheet when you’re choosing something you’ll step on every morning.

If you’ve been tracking progress the hard way and want something that finally gives you a full picture, the £16.50 saving makes the RENPHO MorphoScan a genuinely strong buy before the Prime Day window closes on 26 June.

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Use of HMRC’s taxing IR35 status tool drops 71% in two years

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PUBLIC SECTOR

Data suggests firms are turning away from CEST as critics say it fails to reflect recent court rulings

Use of HMRC’s own tool for checking compliance with the UK’s controversial IR35 freelancer tax rules has fallen sharply, according to Freedom of Information data obtained by tax adviser IR35 Shield.

The Check Employment Status for Tax tool, better known as CEST, was created to help firms decide whether contractors should be taxed like employees. But usage fell 43 percent during the 2025-26 tax year, and dropped 71 percent between 2023-24 and 2024-25, from 458,894 determinations to 135,178.

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What is IR35?

IR35 is a reform unveiled in 1999 by the UK tax authorities. The latest regulation change – which came into force in April 2021 – forces medium and large businesses in the UK to set the tax status of their contractors and freelancers. Previously this was set by the contractors themselves.

Contractors found to be within the scope of the legislation – i.e. inside IR35 – will have to pay more tax than they might expect.

The reforms are part of the government’s crackdown on so-called disguised employment, where workers behave as employees but avoid paying regular income tax and national income contributions by billing for their services through PSCs, which are taxed at lower corporate rates.

The measures first came into effect in the UK public sector in 2017. The British government hoped the reforms would recoup £440m by bringing 20,000 contractors in line.

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HMRC reckons that only one in 10 contractors in the private sector who should be paying tax under the current rules are doing so correctly. It estimates the reforms will recoup £1.2bn a year by 2023.

The findings suggest that firms continue to abandon CEST in favor of alternative status assessment solutions and more comprehensive compliance processes, IR35 Shield said.

CEO Dave Chaplin said: “The majority of firms we speak to for the first time are either lifting blanket bans or seeking to move away from using CEST, having realized it is not compulsory to use, nor does it give them the level of certainty they need.”

The decline is not the result of changes to the tool or legislation, according to IR35 Shield.

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“The underlying CEST logic has not been updated since November 2019 and was based on HMRC’s view of the law at that time. Despite the courts dismissing HMRC’s position in key areas, upon which the tool was based, the tool has not been updated,” Chaplin said.

IR35 Shield pointed out that HMRC lost a recent employment status case with Professional Game Match Officials Limited (PGMOL). Entering the facts of the case into CEST would have produced an indeterminate result, it said.

In 2022, the Public Accounts Committee Committee (PAC) found that central government was spending hundreds of millions of pounds to cover tax owed for individuals wrongly assessed as self-employed. “Government departments and agencies owed, or expected to owe, HMRC £263 million in 2020-21 due to incorrect administration of the rules,” the House of Commons spending watchdog said.

Part of the compliance problem was down to HMRC’s guidance and the CEST tool. “Some questions within CEST were difficult to interpret correctly, and the guidance was long, too general in scope and not integrated into CEST itself,” the PAC said.

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In a statement sent to The Register, a spokesperson at HMRC, said: 

“We always expected use of the tool to reduce as employers familiarised themselves with the 2021 off-payroll working reforms, and the majority of those who use the tool are satisfied with the service they receive.

“The tool is rigorously tested against case law and we’ll stand by the tool’s results, so long as the information provided is correct in accordance with our guidance.” ®

 

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Is Tesla Planning To Sell Modular AI Data Center Hardware?

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Electrek reports:

Tesla wants to sell modular AI data center hardware, according to a new trademark application for a product called “Megapod.” The filing describes a complete, self-contained computing system for AI workloads…

Tesla filed the “Megapod” trademark (serial number 99893717) with the U.S. Patent and Trademark Office this month, through its longtime IP counsel. It’s an intent-to-use application, meaning Tesla is claiming the name for a product it hasn’t launched yet. The goods-and-services description is unusually specific for a trademark. Megapod covers “modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence data processing, networking equipment, power distribution units, and cooling systems.” It also covers “self-contained modular computing hardware systems for artificial intelligence workloads,” integrated platforms sold as a single unit — an enclosure bundling compute, power distribution, and cooling — and downloadable software to monitor, manage, and optimize those systems.

In plain terms: Tesla wants to sell a turnkey AI data center building block. Not a battery, not a chip on its own, but the full rack-and-room of servers, networking, power, and cooling that AI training and inference run on.

Tesla’s offering would have to compete with Nvidia’s liquid-cooled, rack-scale systems that simulates a giant GPU, the article points out. But “The bigger issue is that Tesla has no merchant compute-hardware business to build on.”

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Tesla’s own AI training cluster, Cortex at Gigafactory Texas, runs on roughly 67,000 Nvidia H100-equivalent GPUs. In other words, Tesla is one of Nvidia’s customers, not a competitor selling alternative hardware… Where Tesla does have a real AI-data-center business is power, not compute. Its Megapack and new Megablock energy storage products are selling into AI data centers as grid buffers — Musk’s own xAI has bought roughly $1 billion of Megapacks to keep its training runs powered. That energy-storage strength is the one credible thread here. A Megapod that bundles Tesla’s power electronics, thermal management, and the enclosure — the “shell” around the chips rather than the chips themselves — would at least sit adjacent to a business Tesla actually runs.

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