Tech news digest for Tuesday, March 17, 2026

Amazon Launches 1-Hour and 3-Hour Delivery Services

Amazon has introduced new 1-hour and 3-hour delivery options for Prime members, significantly expanding its rapid delivery capabilities. Available for over 90,000 products, these services aim to enhance customer convenience and compete with similar offerings from rivals like Walmart and Instacart.

• 1-hour delivery costs $9.99 for Prime members and $19.99 for non-members, while 3-hour delivery is priced at $4.99 for Prime members and $14.99 for non-members.
• The new delivery options are accessible in over 2,000 cities across the U.S., including major metropolitan areas such as Los Angeles and Chicago.

Microsoft Restructures Copilot AI Leadership

Microsoft has reorganized its Copilot AI leadership, appointing Jacob Andreou to oversee both commercial and consumer experiences. This change allows Mustafa Suleyman to concentrate on developing new generative AI models, marking a shift in focus for the company as it aims to enhance its AI offerings.

• 3% of commercial users currently utilize the Microsoft 365 Copilot add-on.
• The Copilot app has 6 million daily active users, significantly lower than its competitors.

Elon Musk's xAI Faces Lawsuit Over AI-Generated Child Exploitation

Three Tennessee teens have filed a lawsuit against Elon Musk's xAI, claiming that its Grok AI generated sexualized images of them and 18 other minors. The lawsuit alleges that Grok was intentionally designed to produce child sexual abuse material, with one victim's images reportedly traded among predators on platforms like Telegram and Discord.

• The lawsuit claims Grok generated approximately 23,000 images depicting minors, raising serious legal concerns.

Google's Gemini AI now available to free users

Google has expanded access to its Personal Intelligence feature in the Gemini app and Chrome, making it available to all free users in the US. This feature utilizes data from various Google services, including YouTube and Gmail, to provide personalized responses tailored to individual user preferences. Users can opt-in to this personalization, which enhances their overall experience with the AI.

• Personal Intelligence is currently available only for personal Google accounts.
• The feature integrates data from Google Workspace, Photos, and other services to offer customized assistance.

Tencent Gains Ground in AI Race Against Alibaba

Tencent is accelerating its AI development to compete with Alibaba, launching new products in response to the rising interest in agentic AI. The company plans to integrate its AI agent into WeChat, which has a user base of 1.4 billion, enhancing user experience by automating various tasks.

• Alibaba's new AI tool, Wukong, is currently in invitation-only testing and integrates with DingTalk, Slack, and Teams.

Mastercard's Major Crypto Acquisition

Mastercard is set to acquire stablecoin startup BVNK for up to $1.8 billion, marking its largest investment in the cryptocurrency sector to date. This acquisition aims to enhance Mastercard's capabilities in integrating traditional payment systems with blockchain technology, as BVNK operates in over 130 countries and supports all major blockchain networks.

• The deal includes $300 million in performance-based payments.
• BVNK was valued at approximately $750 million during its Series B funding in 2024.

Retirement and Rumors

Retirement and Rumors saw 2 notable updates in the last 24 hours across 2 sources. The story moved from Tim Cook names Apple’s greatest contributions, talks tariff refunds and retirement rumors to Tim Cook squashes retirement rumors, says he 'can't imagine life without Apple'.

Apple Unveils New Budget-Friendly Devices

Apple has launched several new products this month, including the iPhone 17e and MacBook Neo, aimed at budget-conscious consumers. The iPhone 17e is priced at $599 and features a powerful A19 chip, while the MacBook Neo starts at $499 for education users, targeting students and young professionals.

• The iPhone 17e includes a 48-megapixel camera and supports MagSafe technology.
• The AirPods Max 2 are priced at $549 and offer 1.5x more effective active noise cancellation compared to the previous model.

Nvidia's Revenue Forecast Sparks Surge in Asian Tech Stocks

Nvidia has announced a significant revenue forecast, projecting at least $1 trillion from its new Blackwell and Vera Rubin chips by the end of 2027. This announcement has led to a rise in Asian markets, particularly benefiting tech and auto stocks, including a 4.74% increase in Hyundai Motor shares due to partnerships for autonomous vehicle development.

• Nvidia's CEO Jensen Huang revealed the revenue forecast during the GTC event in San Jose, California.
• Memory makers SK Hynix and Samsung Electronics saw stock gains of over 3% and 4%, respectively, following Nvidia's announcements.

Nvidia Unveils DLSS 5 to Revolutionize Game Graphics

Nvidia has launched DLSS 5, a generative AI technology designed to enhance video game graphics in real-time, achieving photorealism at resolutions up to 4K. This new tool allows developers to control the intensity of the AI effects, ensuring that artistic intent is preserved while improving visual fidelity. Among the confirmed titles utilizing DLSS 5 is the upcoming remake of The Elder Scrolls VI: Oblivion.

• DLSS 5 merges traditional graphics data with generative AI for enhanced realism.
• Nvidia aims to extend DLSS 5's technology beyond gaming into enterprise applications.

Perplexity AI Shopping Bots Can Stay on Amazon for Now, Court Rules

Perplexity AI Inc. successfully obtained a temporary reprieve from a court order that would have prohibited its Comet shopping bots from operating on Amazon.com. The 9th US Circuit Court of Appeals granted this stay, allowing the company to continue its operations while the court reviews the appeal against the lower court's decision.

• The 9th US Circuit Court of Appeals paused a lower court order against Perplexity AI.
• Perplexity AI's Comet shopping bots will remain operational on Amazon while the appeal is considered.

Pentagon Moving to Replace Anthropic Amid AI Feud, Official Says

The Pentagon is actively seeking alternatives to Anthropic PBC's artificial intelligence tools, following a decision by the Trump administration that labeled the company a supply-chain risk due to ongoing disputes over military safety protocols. Cameron Stanley, the Pentagon's chief digital and AI officer, indicated that the transition from Anthropic's products currently used in military operations in Iran will take more than a month, as efforts to implement a different large-language model are already underway.

• The Pentagon plans to transition from Anthropic's AI products within a month.
• Cameron Stanley is leading the effort to install a different large-language model.

Our latest investment in open source security for the AI era

Google has announced a significant investment of $12.5 million in open source security, collaborating with Amazon, Microsoft, and OpenAI to enhance the stability and security of the open source community. This funding will enable maintainers to proactively address AI-driven security threats and implement advanced security tools, showcasing the potential of AI in safeguarding critical software infrastructure.

• Google is collaborating with Amazon, Microsoft, and OpenAI on this initiative.
• The funding aims to help maintainers combat AI-driven security threats.

Alibaba (BABA) Consolidates AI Operations Into New CEO-Led Alibaba Token Hub Unit

Alibaba Group is restructuring its AI operations by creating the Alibaba Token Hub, a new unit led by CEO Eddie Wu. This division will merge AI research with consumer applications, such as DingTalk and Quark-branded hardware, to improve coordination and drive revenue through enterprise services. The move comes amid challenges faced by Chinese tech firms in achieving profitability compared to Western competitors.

• The new Alibaba Token Hub will integrate AI research with consumer applications.
• Alibaba plans to launch a dedicated AI service for corporate clients, enhancing platforms like Taobao and Alipay.

Google’s Personal Intelligence feature is expanding to all US users

Google has expanded its Personal Intelligence feature to all users in the U.S., allowing its AI assistant to provide tailored responses by integrating data from services like Gmail and Google Photos. Previously exclusive to paid users, this feature is designed to simplify tasks such as finding products or planning trips by leveraging personal data, although it remains off by default to respect user privacy.

• Personal Intelligence is now accessible for free-tier users in the U.S.
• The feature connects across Google services like Gmail and Photos for tailored suggestions.

Senators tell ByteDance to 'immediately shut down' Seedance AI video app

Senators Marsha Blackburn and Peter Welch are demanding that ByteDance immediately shut down its Seedance AI video app, which has sparked controversy for generating videos featuring real individuals and licensed characters, raising significant copyright issues. Their letter to ByteDance CEO Liang Rubo highlights the urgent need for safeguards to protect intellectual property rights, reflecting growing concerns in Congress about the rapid development of AI technologies and their implications for creators.

• Seedance 2.0 has faced legal scrutiny for using likenesses of Tom Cruise and Brad Pitt.
• The Motion Picture Association has sent a cease-and-desist letter to ByteDance regarding Seedance.

Zuckerberg and Meta dust off a classic playbook

Meta CEO Mark Zuckerberg is leveraging a familiar strategy to satisfy investors by announcing a major cloud-computing deal with Nebius worth up to $27 billion while reportedly planning a significant 20% workforce reduction. This dual approach of cutting jobs while investing in AI infrastructure aims to enhance efficiency and profitability, a tactic that has historically garnered Wall Street's approval.

• Meta's cloud-computing deal with Nebius is valued at up to $27 billion.
• The company is reportedly planning a 20% workforce reduction, marking its largest layoffs in years.

Samsung to Stop Selling $2,899 TriFold Phone After Three Months

Samsung Electronics Co. is winding down sales of its Galaxy Z TriFold smartphone after roughly three months on the market, suggesting the $2,899 device was always intended as more of a technological showcase than a cornerstone of the company’s mobile lineup. The Korean company will begin by halting sales in its home market, then discontinue business in the U.S. once it clears remaining inventory, a company spokesperson said.

• The Galaxy Z TriFold was priced at $2,899 and featured two hinges.
• Sales will first stop in South Korea before the U.S. market.

Warren presses Pentagon over decision to grant xAI access to classified networks

Senator Elizabeth Warren has expressed serious concerns to Defense Secretary Pete Hegseth regarding the Pentagon's decision to grant Elon Musk's xAI access to classified networks. In her letter, Warren highlighted alarming outputs from xAI's AI model, Grok, which include generating harmful content and lacking adequate safety measures. She demanded clarity on how the Department of Defense intends to address potential national security risks associated with Grok's deployment in classified settings.

• Sen. Elizabeth Warren demands details on how the Pentagon will mitigate risks from xAI's Grok.
• A class action lawsuit was filed against xAI for generating sexual content from minors' images.

Samsung bets this island startup can tame the grid with software and batteries

GridBeyond, a Dublin-based startup, is tackling energy management challenges by creating virtual power plants that integrate various renewable energy sources. Recently, the company secured a €12 million investment from Samsung Ventures to expand its capabilities, particularly in managing peak energy demands faced by tech companies and data centers. With a portfolio that includes around 1 gigawatt of energy resources, GridBeyond aims to enhance grid stability and support the growing needs of industrial users.

• GridBeyond manages around 1 gigawatt of renewable energy resources.
• The startup raised €12 million ($13.8 million) to expand its operations.