TheChek News Flow

Apple Can ‘Distill’ Google’s Big Gemini Model

While we have reported that Apple can tweak, or fine-tune, a version of Google’s Gemini AI so that it responds to queries the way Apple wants, the agreement gives Apple a lot more freedom with Google’s tech.

In fact, Apple has complete access to the Gemini model in its own data center facilities. Apple can use that access to produce smaller models that power specific tasks or are small enough to run directly on Apple devices so they can run the tasks faster, said a person who has direct knowledge of the arrangement.

The process of producing such models is called distillation, which essentially transfers knowledge from one large language model, which acts like a teacher, to another model that acts as a student.

In this case, Apple can ask the main Gemini model to perform a series of tasks to produce high-quality results, or answers, including the model’s step-by-step “chain of thought” or reasoning process. Apple can feed those answers or results to a smaller, cheaper model as training data to produce a distilled model.

Since Apple has full access to Gemini, its student model can also learn to imitate the internal computations that Gemini uses to arrive at its answers, which can be more effective than just imitating the answers it spits out.

This results in smaller models that roughly approximate the performance of their state-of-the-art teachers but require significantly less computing power to run.

However, the process is tricky because Gemini is generally optimized for chatbot and enterprise or coding applications, and those don’t always align with what Apple wants Siri to be, this person said.

The deal doesn’t mean Apple has given up on its own development of unique AI models, which still continues in the Apple Foundation Models team, the person said. It isn’t clear how much Apple is investing in that effort.

It may be tempting to think that the foundation models team would consider using the distilled version of Gemini as a base to develop new models. But the person involved in the process was skeptical it would be of much use to that team because it doesn’t seem to be developing its own direct Gemini competitor.

It isn’t clear exactly what the AFM team wants to develop, but it’s safe to say that part of the team’s goal will be to also develop its own small models that work on Apple devices.

With Gemini powering Siri answers for now, Siri will have the ability to answer questions, tell stories, provide emotional support or help people accomplish tasks such as booking travel. (For more details on the AI features Apple will launch with Gemini’s help, see this article.)

Some features, including Siri’s ability to remember past conversations it had with a customer, or proactive features that could suggest they leave home to avoid traffic ahead of an airport pickup, are expected to be announced at the company’s annual developer conference in June.

While Apple and Google arguably forged the most mutually fruitful tech partnership of the last 20 years, the new arrangement doesn’t mean their competition in AI will end.

Just as OpenAI and Apple are each trying to develop personal AI devices for consumers, such as smart glasses and a wearable pin (read about them here and here), Google will surely try to launch its own new devices that could loosen the iPhone’s grip on the mobile consumer device market.

Gas importer says restrictions threaten ‘new layer of challenge’ to continent’s energy security

The chief executive of German gas importer Uniper has warned that incoming EU methane legislation will restrict Europe’s access to energy, as the Iran war disrupts supplies and drives prices higher.

Michael Lewis said EU rules requiring exporters to the bloc to report methane emissions by the start of next year would “reduce very significantly” the company’s ability to sign new contracts.

“We’re adding another layer of challenge to sourcing gas for Europe,” said Lewis, speaking at the Ceraweek energy conference in Houston.

“We create problems for Europe in terms of gas supply problems. For our customers, in terms of gas prices.”

The EU’s methane legislation was adopted in 2024 to limit methane emissions from imports of energy to the bloc. It requires suppliers to monitor and repair methane leaks and bans practices such as routine flaring, where gas leaks at oil and gas facilities are burned off instead of being captured.

Critics have warned that the requirements are so strict that few importers to the bloc will be able to meet them, although the legislation does include provisions that could allow member states flexibility if security of supply was threatened.

Natural gas prices in Europe have soared to their highest levels since Russia’s full-scale invasion of Ukraine in 2022 following Iranian attacks on energy sites in the Middle East.

Düsseldorf-based Uniper, once Europe’s largest importer of Russian gas, was nationalised by the German government in late 2022 after it was taken to the brink of collapse by Moscow’s decision to cut supplies to Europe.

Lewis said the company had since worked to diversify its supplies. “We’re playing catch-up, we have to rebuild that long-term contract position,” he said, explaining that Germany had to source about half its gas from the short-term market.

The energy sector has been calling on the European Commission to lay out clearer guidelines on how they can comply with the methane legislation.

“Ideally we would like a so-called stop the clock where the requirements are postponed for a couple of years,” Lewis said. “We need crystal guidance.”

One energy trader told the FT: “If by October they come up with a very clear, legally strong compliance design that allows me to sign a contract, I’m fine. If they don’t do that, this stop the clock becomes inevitable.”

Matt Schatzman, chief executive officer of US liquefied natural gas company NextDecade, said his company had “been promised they’ll resolve it. It’s a big problem for Europe if they decide to go ahead.”

Andrew Puzder, US ambassador to the EU, told the FT this week that the methane rules should be amended because it would be impossible for most US producers to comply.

Charlie Riedl, executive director for trade association the Center for Liquefied Natural Gas, said US companies importing gas to Europe did not know how to comply with the legislation.

“Importers are unsure of how to satisfy the legislation as it’s currently written,” he said. “The contracting piece of this is incredibly challenging because we’re talking about a potential 20 per cent penalty attached to non-compliant imports.”

There’s supply and demand for AI computing power and there’s supply and demand for AI itself. The two should be linked, but that hasn’t always appeared to be the case. In the past few weeks, however, the two sides of the AI equation have lined up nicely.

To put it another way, the long-term case for AI demand has strengthened, and that justifies much of the investment in AI data centers. This shift could unlock more funding for the infrastructure behind AI, helping developers meet the surging demand for computing power. It could also spur a wave of even more speculative projects.

The shift justifies the big fund raising at OpenAI, as well as increasing the likelihood that it and Anthropic will have epic initial public offerings in the next 12 months. It also should give investors confidence that higher spending on computing power by Meta Platforms and others is warranted.

The reason for my optimism comes from the emergence of big-money backers seeking to accelerate business adoption of AI. Last week, my colleagues Anissa Gardizy, Valida Pau and Stephanie Palazzolo scooped talks about a potential joint venture involving Anthropic and private equity firms Blackstone and Hellman & Friedman. OpenAI appears to be doing the same thing with private equity firms TPG, Brookfield Asset Management and Bain Capital.

Those reports were quickly followed by news that Jeff Bezos is raising $100 billion to buy up manufacturing companies and use AI to help them automate. If Bezos can raise the money, the fund would be one of the biggest ever.

All of this didn’t happen in a vacuum. AI models, especially Anthropic’s newest versions of Claude, coupled with OpenClaw—software for creating AI agents—have made AI’s capabilities clear. What’s also become clear is AI agents’ insane demand for computing power, which is not likely to slow down.

What ultimately matters here is the demand for AI. The possible private equity joint ventures aimed at speeding AI adoption should help supply that. The top 10 private equity firms own more than 2,000 companies that generate roughly $2 trillion in revenue spread across nearly every industry.

The boom in AI comes at a difficult time for those firms. Many are stuffed with software companies, seen as vulnerable to AI, and have been forced to hold investments for longer than in the past because of a lack of exit opportunities.

But private equity firms won’t give up without a fight: Their executives’ compensation depends on it. That means they will embrace AI and infuse it into the companies they own. “It’s all the buzz in the PE world,” said Neil Dhar, who leads IBM Consulting’s business in the Americas and advises private equity firms. He added that some firms are identifying technology that works for them and spreading it through their companies. “You didn’t see that much in the past,” he said.

The size and breadth of private equity’s holdings mean a large number of companies will see competitors quickly adopting AI. Private equity firms tend to buy midsize companies that typically can’t afford big investments in technology. Competitors will either have to make those investments or risk falling behind.

One of private equity’s most popular strategies in recent years has been the rollup. If there’s an industry with 10 main players, private equity firms will buy up two or three, then those companies will buy one or two more of the remaining competitors. Pretty soon the industry is dominated by private equity–owned and now AI-armed companies. The remaining independent companies scramble to keep up.

The AI build-out has always been a chase after cash. By potentially creating more demand, private equity firms and the Bezos fund will effectively be adding more money to the already huge AI stockpile.

None of this means building a data center is a direct path to huge gains. Data centers are hard to build, and the economics have gotten worse with the rise of fossil fuel prices and interest rates. If they fall behind, data center developers could still blow through their funding and never get to enjoy the windfall at the end.

Demand is also not infinite. Real estate firm JLL expects $3 trillion in spending on AI infrastructure through 2030. That doesn’t sound as bonkers as it did a few months ago. The risk is that the current euphoria will give lenders confidence to fund even more projects. If there wasn’t an AI bubble last year, there might be one this year.

National Crime Agency has frozen multimillion-pound assets of woman with ambition of working in banking

A masters student who has had millions of pounds of UK property frozen in relation to a $2bn money laundering probe is petitioning a London court to keep her identity private.

At a hearing in London’s High Court on Wednesday, lawyers for the woman — known as ‘GKC’ — fought to keep her anonymous on the basis that she is the subject of “suspicion” rather than a full action from the UK’s National Crime Agency.

The NCA secured a so-called unexplained wealth order (UWO), which requires individuals to explain how they have lawfully acquired an asset, against the woman in July 2025. 

The UWO and linked interim freezing order (IFO) relate to two multi-million-pound flats in the UK purchased in GKC’s name and about £800,000 in bank accounts that have been frozen, according to court filings. One of the apartments was bought for £4mn.

The woman came to England when she was 16 and attended boarding school. She said in court papers that she has ambitions to work in banking after completing her masters, and that these would be harmed if she lost anonymity. She had no declared income or earning records at the time the UWO was sought. 

The NCA’s case centres on whether those assets were given to her by people connected to a $2bn money laundering investigation in Singapore. The agency says her identity should be made public, with its barrister Andrew Sutcliffe KC telling the court that the process should not operate under a “cloak of privacy”.

The woman unsuccessfully sought to have the UWO quashed by the court last month. She is seeking permission to appeal that decision.

UWOs were first introduced in 2018 in a bid to target illicit wealth being brought into Britain. Since then, law enforcement agencies such as the NCA have secured high-profile orders against individuals including the wife of a jailed Azeri banker.

Earlier this week, the Crown Prosecution Service obtained a UWO against a Chinese national and associated UK companies in relation to a property portfolio worth more than £81mn. 

GKC’s lawyers sought to argue that she should be granted the same anonymity rights as someone pre-charge in a criminal investigation.

“The obtaining of a UWO is not a public trial. It is the granting of an investigative order in order to assist the NCA to build a case,” said Tim Owen KC, acting for GKC. 

He added: “We are at the stage of the NCA having suspicions. Those suspicions have not crystallised into a decision that there is an evidential basis to pursue a claim.”

A judgment on anonymity will be handed down at a later date.

The New Chanel Designer Behind the ‘Matthieu Mania’ Frenzy

Inside Chanel boutiques, a frenzy over its new collection is taking the storied brand’s wares far beyond ladies who lunch

Last week, Miami content creator Rose Litkowski accompanied her friend to a Chanel boutique to browse the first collection from designer Matthieu Blazy. The friend’s husband had asked Litkowski to attend as the voice of reason.

Instead, Litkowski walked out of the boutique with her first Chanel purchase, a $6,200 black leather bag. “I was there to be emotional support and I left needing the support,” Litkowski, 30, joked.

The first collection from the new Chanel designer, a 41-year-old fashion-world phenom and the brand’s first major creative appointment since Karl Lagerfeld’s death in 2019, has prompted a frenzy in New York, Miami and beyond. Online, the craze has been dubbed “Matthieu Mania,” as shoppers clamor for animal-print ballet flats, sleek one-piece bathing suits and gigantic tote bags.

Blazy’s Chanel designs, which first hit the runway in October, were well-received by fashion fans and critics, who were watching to see how the former Bottega Veneta creative director would take Chanel beyond the aesthetics of Lagerfeld and his successor Virginie Viard. Industry watchers credited Blazy for bringing fresh energy to the house’s tweed jackets and cap-toe shoes, which some critics wrote had gotten stale in recent years.

Gab Waller, a Los Angeles-based luxury shopper who locates hard-to-find fashion for clients, said the demand she’s fielding for Blazy’s first collection has been unprecedented “in my 8 years of sourcing.” Waller is currently handling “hundreds” of requests for the brand’s ballet flats, denim trousers and croc-embossed belts that are selling out in stores. One purse at the top of everyone’s list, Waller said, is an enormous $11,000 leather tote bag that’s been spotted on Hailey Bieber and Blackpink’s Jennie.

Blazy’s square-toe pumps, colorful leather purses and cropped blazers were first available in Paris in early March. Waller believes the strategy of launching in Paris ahead of a global rollout stoked the craze. Editors and content creators who were in town for fashion week helped fuel demand by posting their picks online, building buzz for the collection once it fully rolled out last week.

The brand also sells products in limited quantities to keep interest high, Waller added. Chanel famously does not sell all its offerings online.

“If everyone can get something, it loses its mystique,” she said.

Amongst the wealthy shoppers now hitting up Chanel are younger, first-time buyers. The rising prices at luxury brands like Chanel have pushed many aspirational shoppers towards resale, but Blazy’s fresh styles are inviting them in, and are even convincing them to pay full-price. Also appealing to younger Chanel shoppers are new, long-handled bags starting at $3,975—a more accessible price than other Chanel bags, which can fetch $12,800.

Chanel declined to comment.

Carolyn Chang, a social-media consultant in New York, said she’d always found Chanel to be “a bit cookie-cutter, with the same tweeds and the same silhouettes.” She owns secondhand Chanel purses, but never perused its stores because she felt the collections were made for an “older demographic.” Last week, though, the 26-year-old found herself browsing Blazy’s colorful footwear and handbags. Chang bought animal-print ballet flats, which retail for $1,425. “It’s something that can really make your outfit pop,” she said.

In December, Bruno Pavlovsky, president of Chanel fashion, told The Wall Street Journal that Chanel revenue hit single-digit growth in 2025. The group generated $18.7 billion in revenue in 2024, according to filings (Chanel has not released 2025 filings). Pavlovsky said that recruiting new clients “is not an obsession at Chanel.” With Blazy’s first collection release, the brand seems to have found them anyway.

Shelby Satterwhite, who works as a buyer at an off-price company in New York, tends to shop vintage and mid-priced fashion instead of luxury. But after getting a promotion and a bonus, Satterwhite, 31, celebrated by buying a new pair of Chanel shoes. She ordered the animal-print ballet flats through a sales associate, which were hand-delivered. She said she found Blazy’s styles to be more “modern” than previous collections and is “excited to see what the next collection holds.”

Not everyone is in a craze. Jenn Smith, a Chanel VIP shopper in Boca Raton, Fla., and 49-year-old mother of five, bought clothing from the recent collection but held off on shoes because she “was not in love with the options.” She said she prefers Chanel’s more classic designs. “I think a lot of hype has been created through influencers,” she said.

Elle Ferguson, an Australian influencer who flew to Paris for fashion week, said she’d had her eye on the same tote that Bieber wore. But even 30 hours of flying, a pre-booked shopping appointment and over 680,000 Instagram followers couldn’t secure Ferguson the bag of the season. She saw the purse at a Chanel boutique, but Ferguson said she was told that the handbag had been reserved.

Ming Yang’s plans to build Scottish factory thwarted

The UK government has said that Chinese turbine maker Ming Yang’s products pose a national security risk and it could not support their use in UK offshore projects.

Ministers said on Wednesday that while they welcomed investment from China, “we will always protect our national security”.

“After careful consideration, the government has concluded that there are national security risks associated with this and this is what we are saying to offshore wind developers,” a person familiar with the matter added.

“These are sensitive issues: the government’s view has been informed by the highest level of national security.”

Ming Yang is privately owned and listed on the Shanghai shock exchange but critics have raised concerns about the Chinese government’s potential interference in private companies, as well as the risks that European industry will get further hollowed out by competition from China. 

The government’s statement follows months of deliberation and is likely to spark fierce debate about Britain’s openness to Chinese investment, as well as whether it is adding to the costs of green energy by blocking competition. 

Ming Yang had set out plans in October to invest up to £1.5bn in a factory to produce turbine blades and other parts for the UK, Europe and other markets.

Ming Yang said it was “disappointed” with the government’s decision “not to allow Ming Yang’s world-leading technology” to be used, adding it would continue to engage with the UK government and could revive its plans if policy changed.

Wednesday’s decision follows concerns raised by the Trump administration over the plans, as well as criticism from some MPs. 

The UK and Scottish government have held talks with Danish turbine maker Vestas about co-investing to build a new factory in Scotland, according to an announcement this morning from Vestas. 

Vestas said it planned to push ahead with the factory if it wins enough orders for UK wind farms, adding that it could be up and running by 2029, creating up to 500 direct skilled jobs. 

Ed Miliband, UK energy secretary, said the government’s “clean energy mission is delivering good industrial jobs for Scottish workers — boosting growth”. 

The Scottish government has been supportive of Ming Yang’s potential investment into the Highland port of Ardersier, which would have helped develop a local supply chain for the offshore wind industry and create much-needed jobs in a region blighted by the decline of the North Sea oil industry.

Octopus Energy, Britain’s largest household energy supplier, had called for the UK to embrace Chinese energy technology and in September announced a partnership with Ming Yang including plans to deploy its turbines in the UK with the “highest levels of data protection and cyber security”. 

Zoisa North-Bond, Octopus’s head of energy generation, argued in January that greater competition could cut wind farm development costs by almost a third. 

Ming Yang, which also trades global depositary receipts in London alongside its main Shanghai listing, is one of the world’s largest wind turbine makers and employs more than 25,000 people around the world.

KKR and GIP among bidders for Drahi’s multibillion French fibre network

Bids for XpFibre have come in between €6bn and €8bn as Patrick Drahi pursues asset sales to ease debt burden

Private capital firm KKR and BlackRock-owned Global Infrastructure Partners are among the bidders for Patrick Drahi’s controlling stake in superfast broadband network XpFibre, as the telecoms tycoon turns to asset sales to gain breathing room from creditors.

The bidders, which also include infrastructure investor Ardian and GIC-backed Vauban Infra Fibre, have made offers at an enterprise value of between €6bn and about €8bn for XpFibre, according to people close to the process.

Drahi values the French fibre network business in which he owns a 50.01 per cent stake at €9bn, according to another person with knowledge of the process. The rest of XpFibre is owned by Omers Infrastructure, Allianz and Axa Investment Managers.

XpFibre is one of several asset sales being explored by Drahi to cut the more than €50bn debt across his Altice telecoms empire, which was assembled through a series of leveraged takeovers during the low-interest era.

Reducing Altice’s debts has become a pressing issue for Drahi as interest rates have risen.

In October, the Franco-Israeli billionaire rejected a €17bn offer for the majority of French mobile and broadband business SFR from a consortium of the country’s three other mobile operators. While talks are ongoing, a revised bid has not been submitted for what would be a complex carve-up subject to intense regulatory scrutiny.

The FT reported last month that Altice France, which owns SFR and XpFibre, could be forced to restructure its debts within 18 months if it fails to sell assets. The group’s net debt stands at about €16bn.

A sale of XpFibre would give Drahi valuable breathing room. However, previous offers for the business, received in 2024, stalled due to disagreements over valuation and Drahi’s decision to prioritise a financial restructuring of Altice France.

In addition to pursuing asset sales Drahi’s creditors expect him to restructure other parts of his operations. In November, the tycoon infuriated creditors to his international operations by moving the bulk of the group’s assets out of their pool of collateral, meaning they could not lay claim to them should Drahi fail to repay his debts.  

Drahi also sued creditors to his US operation, which sits on more than $26bn of debt, last November alleging they had colluded to force him into bankruptcy. 

GIP, Ardian, KKR, GIC, Vauban and Altice France declined to comment.