South Korea's top court clears Samsung Chairman Lee in 2015 merger case, Yonhap says
The Supreme Court's verdict permanently removes a long-running legal distraction for Lee as Samsung plays catch-up in a global race to develop cutting-edge AI chips.
The Supreme Court upheld an appeals court's ruling dismissing all the charges in the case involving the merger a decade ago between two Samsung affiliates, Samsung C&T and Cheil Industries, which prosecutors said was designed to cement Lee's control of the tech giant.
A lower court last year had also cleared Lee of the charges.
The Supreme Court ruling was widely expected, but comes at a critical moment for Lee, who has faced mounting questions about his ability to lead Samsung Electronics - the world's top memory chip and smartphone maker - as it grapples with growing competition and playing catch-up in artificial intelligence chips. For nearly a decade, Lee has faced legal challenges, including those from the merger that paved the way for his succession after his father, Lee Kun-hee, had a heart attack in 2014 that left him in a coma.
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CNET
27 minutes ago
- CNET
Why Android-Makers Should Focus on the Phone and Leave AI to Google
If you've bought an Android phone in the past year, you've likely noticed that it's packed with AI features. Maybe you knew about them before you hit purchase, maybe you assumed (safely as it turns out) that there would be some kind of AI on your new phone, or maybe they took you totally by surprise. If you bought a Samsung Galaxy S25, for example, you'll have had Gemini, Circle to Search, Bixby and Galaxy AI at your fingertips -- all before you even thought about downloading the ChatGPT app. It reminds me of the early days of Android, when phone-makers tried to load devices with their own apps, services and overwrought UIs in the name of differentiation. Which sparks the question: Is AI the new Android bloatware? It's easy to understand why Android phone-makers have latched onto the idea that AI might be a useful tool to set them apart from rivals. After all, most flagship Android phones share the same DNA: a high-end processor (usually the top Snapdragon chip from Qualcomm), the latest Android software, a competitive camera system and a battery that will last for a day or more. The truth is that we're often splitting hairs when trying to recommend one over another. When generative AI arrived on the scene, offering the potential to bring new experiences to mobile devices, Android phone-makers were keen to tap into those possibilities. Here was a new opportunity to differentiate themselves, and give people a fresh reason to choose them over a competitor. (And over the iPhone, as Apple slow-walks Apple Intelligence into being.) In reality, it's not quite playing out that way -- and for a few different reasons. First, research conducted by CNET and supported by the findings of independent industry analysts consistently shows us that people aren't upgrading their phones due to the availability of AI features. Instead, the things they care about, in order of importance are price, longer battery life, storage, cameras. In other words, the same exact things they've prioritized for years when choosing a new phone. The second issue is that in spite of some manufacturers' best efforts, AI isn't the differentiator they thought it would be. At the heart of this problem is that there's barely an Android phone hitting the market right now that doesn't already have the most cutting-edge tech built into it thanks to Google Gemini. Every Android phone maker has its own flavor of AI, but more often than not, this means a bunch of gimmicky features added onto the existing software in a haphazard fashion, creating something of a Frankenstein effect. Early-mover advantage: Galaxy AI Of all the Android phone-makers trying to make their own AI brand stick in our minds, it's perhaps Samsung that's in with the best chance. Compared to rivals, it was relatively early to jump onto the AI bandwagon, launching Galaxy AI in January 2024, giving it a strategic headstart that it's built on ever since. Last week it followed the launch of its latest foldables with an AI forum, during which it revealed that 70% of Galaxy S25 owners were using Galaxy AI features. More than half, it added, were using Circle to Search. This year it will bring Galaxy AI to more than 400 million devices. Android's Circle to Search feature originally launched on Samsung Galaxy S24 and Pixel 8 phones in January 2024. Samsung/Screenshot by CNET This all sounds positive, until you remember that Circle to Search is a Google feature, not a Samsung feature. Google, which makes the Android OS, often hands out temporary exclusives to Android phone-makers on new Gemini features, as it initially did with Circle to Search for Samsung in 2024. It did it again this year with an image-to-video generator, which debuted with Honor. It's surely a nice sweetener for Google's relationships with phone-makers to be able to offer them these exclusives. But most of the standalone AI mobile tools we've seen grab the headlines are ultimately Gemini features made by Google, not the work of individual phone-makers, and it's only a matter of time before they become available on other Android devices – including Google's own Pixel phones. To Google, "nothing is more important than Gemini," said Ben Wood, chief analyst at CCS Insight. It is a "strategic pillar of the future of Google." And how better, he adds, to ensure its success than getting it into people's hands through the 3 billion Android phones in the marketplace (which puts Samsung's 400 million into perspective)? Samsung might have the largest market share of any Android phone maker, but when you look at its reach compared to Google's, it's clear that Galaxy AI, which sits on top of Gemini, is at a competitive disadvantage. Bonus AI Of course Samsung and other Android phone-makers will say their own flavors of AI don't compete with Gemini, but complement it. And there is some validity in this idea. It's rare that a phone maker attempts to replicate something Google has already done. Instead they look for opportunities to add their own AI twist -- often in the form of camera features. But whether they do this well enough for it to make any kind of meaningful impact on people's decisions to buy their phones is another question entirely. This week, OnePlus began rolling out its own suite of AI features, announced back in May, to the OnePlus 13 and 13R. These include some photo tools and an AI content hub called Plus Mind to act as your memory for important information. OnePlus' natural language search within "Mind Space" worked well for me. Katie Collins/CNET It would be a waste of time for OnePlus to replicate features in house that have already been developed by Google, said Arthur Lam in an interview at the software launch. A central part of the company's AI strategy is to "embrace and integrate [Google AI features] as fast as possible," he said. "At the same time, we should have our own proposition, our own idea about what OnePlus AI should stand for," added Lam. This is where Plus Mind comes in. It's an interesting first step from the company, although perhaps not quite as compelling as a company such as Motorola, which is investing in a LAM (large action model) -- as opposed to an LLM, or large language model -- that will respond to questions with actions, not just words. The idea is that it will use its understanding of your environment and reduce the number of interactions you need to have with your phone to order a coffee or an Uber, for example. All roads lead to Gemini As for Google, the company thinks it's "great" that phone makers are developing their own AI to complement the suite of tools it's providing them. That's what Sameer Samat, president of Android, told Tech Radar this week. "If the features are great, it's more value for the consumers and more innovation," he said. "But I think for us, as Google, we want to make sure those two pieces [Circle to Search and Gemini] are very clearly accessible, very clearly identifiable across all the different devices that consumers are considering." It's a revealing statement from Samat, supporting the theory that Google's ambition is to be the final boss of the AI smartphone experience. As Wood puts it: "All roads lead to Gemini." Ultimately, it's not only Google's reach that is going to allow Gemini to be the dominant AI tool on Android phones, but the budget and talent the company has to dedicate to AI, which individual phone-makers just can't match. This means that when it comes to differentiation, AI is unlikely to be the factor that sets brands such as Samsung and OnePlus apart. "Handset manufacturers are in danger of being left to compete more on brand and industrial design than AI features and capabilities," said Wood. True differentiation: The Nothing story One company that seems to have realized this is UK-based Nothing. Over the past year or so, I've attended, either in person or virtually, almost every major Android phone launch. One thing most of them have in common is a Google representative on stage espousing the many benefits of Gemini. At the launch of the Nothing Phone 3 in London earlier this month, the company bucked this trend. Nothing still has a tiny market share -- around 0.2% as estimated by founder and CEO Carl Pei. But since its inception in 2022, it's managed to thrive and grow in a competitive, mature phone marketplace thanks largely due to its focus on design. Nothing's focus on design sets it apart. Andrew Lanxon/CNET That's not to say it's ignored AI, but it has taken a different approach. Earlier this year it launched "Essential Space," an AI-powered portal for storing and organizing everything important on your phone, from screenshots to calendar invites. It was a unique feature that's already been effectively copied by some other phone-makers (see OnePlus' efforts above). Nothing does use Gemini, but it's not reliant on it in the same way its competitors are. "We don't want to do the model side," Pei explained to me at its Phone 3 launch earlier this month. "There's companies that are really good at it. They're very well funded and they're all competing against each other." Instead, Nothing has built its AI platform to be "model agnostic," he said. "When the models get better, we just switch to the best one. Right now, I think it's powered by Gemini, but there's no stopping us from changing to the latest and greatest." The uphill battle ahead A flexible approach to AI seems like the safest bet at this time when the technology is changing minute by minute. It'll be an uphill battle for Android phone-makers to keep up, and hope their own efforts will remain relevant and prove useful as Google charges ahead offering best-in-class mobile AI experiences. The real fight here is the same one we've seen play out for the past decade and a half: It's Apple versus Google. The true differentiation we're seeing in mobile AI right now is between Google Gemini and Apple Intelligence, with the former leading the field and the latter trailing in its wake. For as long as Google attempts to aggressively build upon its early AI lead while holding the Android ecosystem in the palm of its hand, phone-makers will need to do more than just rely on AI to persuade us that their Android offering truly is the best of the best.


Forbes
28 minutes ago
- Forbes
RCAT Stock To $25?
CHONGQING, CHINA - MAY 11: In this photo illustration, the logo of Red Cat Holdings, Inc. is ... More displayed on a smartphone screen, with the company's red branding and stylized cat face emblem visible in the background, on May 11, 2025, in Chongqing, China. (Photo illustration by) Red Cat Holdings (NASDAQ:RCAT) has experienced a remarkable increase in its stock by 500% over the past year, mainly due to its strategic emphasis on the rapidly expanding drone defense sector. This exceptional growth is fueled by notable military contract achievements, even as the company continues to incur losses. A significant contributor to this success is the U.S. Army's Short Range Reconnaissance (SRR) program, which may enable Red Cat's Black Widow drones to provide up to 5,880 units over five years. Additionally, the company has secured fresh orders for its Edge 130 drones from various U.S. government entities. This increase in demand is further bolstered by a global rise in defense expenditures on drone technology, partly influenced by the conflict in Ukraine. Red Cat's dedication to 'Made in America' drone solutions is proving essential, aligning with national security objectives. The company's strategic alliance with Palantirfor AI navigation and manufacturing optimization, together with its innovative Edge 130 and Black Widow products, is expected to result in a notable growth in anticipated revenues this year, with the Black Widow drone expected to guide the company towards profitability. However, for those seeking upside with a less volatile option than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, achieving over 91% returns since its inception. Separately, check out – D-Wave Quantum: Can QBTS Stock Deliver Another 1,000% Gain? Financial Performance Analysis Red Cat presents a complicated financial scenario with contrasting short-term and long-term trends: Red Cat's current profitability measures are severely unfavorable across all key metrics: These metrics indicate the company's ongoing investment stage as it scales up production capabilities and meets military contract demands. Despite operational losses, Red Cat preserves a robust financial basis: The low debt load affords financial flexibility for growth investments and fulfilling contracts. Valuation Metrics Red Cat's valuation appears high based on traditional metrics, with a price-to-sales ratio of 80x compared to the S&P 500's 3.1x. However, this superficial analysis fails to account for the company's transformation narrative. The valuation becomes increasingly attractive when projected growth is taken into account: Risk Assessment Red Cat Holdings faces significant risks, including operational difficulties in scaling manufacturing to fulfill large military contracts, maintaining rigorous quality control, and managing supply chain vulnerabilities. Market-wise, the company contends with fierce competition, possible changes in defense spending, and substantial customer concentration due to its reliance on government contracts. Moreover, RCAT stock carries considerable market risk, having underperformed significantly compared to the S&P 500 during prior downturns. Financially, ongoing negative cash flow requires continuous access to capital, and timelines for profitability could be impacted by legal challenges, such as class action lawsuits alleging false claims about production capacity and the true value of the SRR contract. Geopolitical elements like defense budget reductions, export limitations, and decreased global tensions also present risks to future growth and market development. Additionally, check out – What's Happening With SBET Stock? The Verdict Red Cat Holdings showcases an intriguing growth narrative within the defense technology arena, with the 500% appreciation in stock price representing both the company's strategic positioning and the larger drone market opportunity. While current financials indicate substantial losses, the strong balance sheet and significant military contracts lay a foundation for anticipated revenue growth. The forward-looking valuation seems reasonable given the potential for growth, though execution risks and market competition are crucial factors for investors to watch closely. Now, we utilize a risk assessment framework while constructing Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has consistently shown strong performance against the S&P 500 over the past four years. Why is that? As a collective, HQ Portfolio stocks have offered superior returns with reduced risk in comparison to the benchmark index; a smoother investment experience, as evidenced in HQ Portfolio performance metrics.


Bloomberg
28 minutes ago
- Bloomberg
Buldak Ramen's $8 Billion Success Story
Opinion Samyang Foods, the Korean company behind Buldak ramen, went from bankruptcy in the '90s to an $8 billion valuation now. Bloomberg Opinion Columnist Shuli Ren explains what investors sees in the viral noodles. (Source: Bloomberg)