Tech Giants Make Major AI Commerce Push as Regulators Block Grok Access

Major technology companies are advancing artificial intelligence integration into commerce while facing increased regulatory scrutiny, according to multiple industry developments this week.

Google Expands AI Shopping Capabilities

Google announced a new protocol enabling commerce through AI agents, partnering with major retailers including Walmart, Shopify, and Wayfair to integrate shopping features directly into its Gemini AI chatbot [TechCrunch]. The initiative transforms the Gemini app into both a virtual merchant and assistant, allowing users to make purchases through conversational AI interactions.

"Google is expanding the shopping features in its AI chatbot by teaming up with Walmart, Shopify, Wayfair and other big retailers to turn the Gemini app into a virtual merchant as well as an assistant," according to Associated Press reporting [Associated Press].

Southeast Asian Nations Block Grok Over Deepfake Concerns

Indonesia and Malaysia have temporarily blocked access to Grok, Elon Musk's AI chatbot, citing concerns over non-consensual sexualized deepfake image generation [TechCrunch]. The restrictions reflect growing global concerns about AI-generated content and its potential for abuse.

The blocks come as Democratic U.S. senators have demanded that Apple and Google remove X and Grok from their app stores over similar concerns about sexual image generation [Reuters]. In response to the backlash, Musk's AI bot Grok has begun limiting some image generation capabilities on the X platform [Reuters].

TSMC Profits Surge on AI Chip Demand

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest advanced AI chip manufacturer, is expected to report a 27% jump in fourth-quarter net profit to record levels, driven by sustained demand for AI infrastructure [Reuters]. The profit surge underscores the continued growth in artificial intelligence hardware requirements across the technology sector.

Additional Industry Developments

The Supreme Court has agreed to hear Cisco's appeal seeking to dismiss a lawsuit alleging the company's technology was used to persecute Falun Gong members in China [Associated Press]. Meanwhile, Lyft and Uber drivers protested Waymo's self-driving taxis in San Francisco as California considers additional autonomous vehicle regulations [Associated Press].

In corporate news, Meta has secured massive nuclear power supplies to energize AI data centers, while SpaceX received FCC approval to deploy an additional 7,500 Starlink satellites [TechCrunch].

Market Implications

The developments highlight the technology industry's dual challenge of advancing AI capabilities while addressing regulatory and ethical concerns. Google's commerce push represents a significant expansion of AI into retail, while the Grok restrictions demonstrate governments' willingness to act against perceived AI misuse.

TSMC's expected profit growth reflects the underlying strength in AI hardware demand, suggesting continued investment in artificial intelligence infrastructure despite regulatory uncertainties in other areas of the technology sector.