Author: Mia Bhatia

Categories
Technology

Google Cloud brings Gemini AI to legal work

Google Cloud has launched Gemini Enterprise for Legal, a specialised artificial intelligence platform designed to help law firms and corporate legal departments automate time-consuming legal work while keeping sensitive information within controlled environments.

Announced on August 25, the new offering brings AI agents into workflows such as contract review, legal research, regulatory monitoring, privacy requests and document drafting. Unlike general-purpose AI tools that mainly respond to prompts, Google says its new platform is designed to carry out multi-step tasks using a firm’s own systems, data and working rules.

The service is currently available in preview and has been introduced with the involvement of major law firms including Cleary Gottlieb, Freshfields, Weil and Williams & Connolly. Google is positioning the product as part of a wider push to build industry-specific AI solutions rather than relying on a single general-purpose model for every professional task.

A key difference is the emphasis on the particular demands of legal work. Lawyers often deal with privileged client information, confidential documents and separate access rights for different matters. They also need research to be based on reliable legal authority rather than simply generated from an AI model’s training data.

Gemini Enterprise for Legal is designed to address those concerns by connecting with a firm’s existing document and matter-management systems. Google says the platform can inherit existing permissions and ethical walls, helping prevent information from one client or matter from being accessed inappropriately by another. Client files, internal playbooks, negotiated positions and other organisational data are also intended to remain within the firm’s private data environment.

The platform has four main elements. The first is a collection of purpose-built legal skills that guide AI agents through tasks such as contract review, legal brief drafting, citation verification, regulatory monitoring and Data Subject Access Request, or DSAR, processing.

The second is a network of secure connectors that allows Gemini Enterprise for Legal to work with software already used by legal teams. These include iManage, NetDocuments, DocuSign, Everlaw, RelativityOne, Thomson Reuters, Harvey, Legora and CourtListener, among others. Google says the integrations are designed to preserve existing access controls instead of requiring firms to move their data into a separate system.

The third element is an ecosystem of third-party legal technology providers and AI agents. Companies and consulting firms including Accenture, Deloitte, KPMG and others are working with Google to extend the platform and build customised capabilities.

The fourth is the underlying Gemini Enterprise platform, which provides a central control system for IT and risk teams. It includes governance, audit logging and risk-management features, giving organisations greater visibility into how AI is being used.

The practical appeal for lawyers could lie in the amount of routine work the system is designed to handle. Gemini Enterprise for Legal can monitor legislative changes, court dockets and regulatory developments, then compare those changes with an organisation’s policies and flag potential areas of exposure.

Contract work is another major focus. The AI can examine vendor agreements, non-disclosure agreements and merger-and-acquisition documents against a firm’s existing playbooks. It can highlight clauses that may create risk, allowing lawyers to spend more time on negotiation and professional judgment rather than first-pass document review.

The platform can also turn older contracts into structured contracting playbooks by identifying commonly used terms, fallback positions and other institutional knowledge. That could help firms maintain consistency across large numbers of agreements while reducing the manual effort involved in building and updating internal guidance.

Privacy teams are another target. The system can search across enterprise systems to locate personal information needed for DSAR responses, potentially reducing the time spent collecting information manually and helping organisations meet regulatory deadlines.

Other applications include preparing and redacting documents for court filings, as well as drafting NDAs while following a firm’s preferred structure and formatting. Google describes this shift as a move from AI that simply answers questions to agentic AI that can execute defined tasks from beginning to end, with human professionals remaining responsible for critical decisions and review.

Security is central to Google’s pitch because legal technology involves some of the most sensitive corporate and personal information. Google says client data, firm-specific playbooks, intellectual property, custom agents and model outputs remain private to the organisation and are not used to train or fine-tune its foundation models.

The launch also highlights the intensifying competition in legal AI. Technology companies and specialist legal-tech firms are increasingly targeting law firms as demand grows for faster research, document analysis and workflow automation. Google’s strategy is to work alongside existing legal software rather than force firms to replace their current systems.

For law firms, the bigger change may therefore be less about replacing lawyers and more about changing how legal teams divide their time. Routine searches, document checks and compliance monitoring can increasingly be delegated to AI agents, while lawyers concentrate on interpretation, strategy, negotiation and client advice.

Gemini Enterprise for Legal is still in preview, meaning its capabilities and integrations will continue to evolve. Google has also indicated that more industry-specific versions of Gemini Enterprise are planned, signalling a broader strategy of taking enterprise AI beyond general productivity tools and adapting it to specialised professional workflows.

 

Categories
Leaders

OpenAI data centre chief Chris Malone exits company

Chris Malone, OpenAI’s head of data centres, has left the company after roughly 17 months, becoming the latest senior executive to depart the ChatGPT maker as it undergoes major changes to its business and infrastructure strategy. OpenAI confirmed Malone’s exit this week but did not give a specific reason for his departure.

Malone joined OpenAI in March 2025 after spending more than a decade at Google and nearly five years at Meta, where he worked on data centre infrastructure. His experience made him a key hire for OpenAI as the company began pursuing one of the technology industry’s most ambitious plans to expand its computing capacity.

His departure comes at a particularly important moment for OpenAI. The company needs enormous amounts of computing power to train and operate increasingly sophisticated artificial intelligence models, while demand for ChatGPT and other AI products continues to grow.

OpenAI has been investing heavily in AI infrastructure, including through the Stargate project. The initiative was designed to build large-scale data centres and computing infrastructure in the United States, with OpenAI working with partners including Oracle and SoftBank. Malone was initially brought in to help oversee this broader infrastructure push.

The company, however, has been changing how it approaches data centre expansion. Instead of relying only on building new facilities, OpenAI is increasingly looking at leasing entire data centres to secure computing capacity. The shift could give the company more flexibility as it tries to expand quickly without taking on all the costs and risks associated with constructing and owning every facility itself.

OpenAI has also reorganised its infrastructure leadership. The company said earlier this year that it changed the structure of its infrastructure organisation to keep up with the scale and speed of its work. It said a strong and experienced data centre team remains in place with clear leadership.

That reassurance is important because data centres have moved from being a largely behind-the-scenes part of the technology industry to becoming central to the AI race. Powerful AI models require thousands of specialised chips running continuously in large facilities. Those facilities consume huge amounts of electricity and, depending on their cooling systems, significant quantities of water.

That demand has sparked growing opposition in parts of the United States. Communities and politicians are questioning whether the economic benefits promised by AI data centres justify their impact on local power supplies, water resources and the environment.

The backlash is becoming a bigger political issue as the US approaches the 2026 midterm elections. Data centre proposals are facing resistance in several states, with concerns ranging from higher electricity demand to water use and the effect of large industrial projects on local communities. Recent polling has also indicated widespread opposition to data centre construction near residential areas.

The timing creates an unusual challenge for OpenAI. The company cannot easily slow its infrastructure expansion because its competitors are pursuing the same goal. At the same time, spending hundreds of billions of dollars on computing capacity creates pressure to make sure those investments generate enough revenue.

OpenAI’s infrastructure ambitions have become especially large. Recent reports indicate that the company now expects its computing-related spending through 2030 to reach roughly $750 billion, higher than earlier estimates. The figure underlines how expensive the race to build next-generation AI systems has become.

One major project is taking shape in Ohio, where OpenAI and its partners are developing what is expected to be one of the world’s largest AI data centres. The project illustrates both sides of the current debate: supporters see major investment and job creation, while local residents and environmental groups have raised questions about energy use, pollution and the wider impact on the surrounding community.

Malone’s exit also adds to a noticeable wave of leadership changes at OpenAI.

Longtime chief operating officer Brad Lightcap announced earlier this month that he would leave the company to pursue a new project. Revenue chief Denise Dresser also announced her departure after less than a year. Fidji Simo, who previously served as OpenAI’s product and business chief, stepped down in July. Other senior executives, including former product chief Kevin Weil, have also left this year.

The departures are attracting attention because OpenAI is preparing for a possible initial public offering in 2027. A company preparing for a major stock market listing typically faces greater scrutiny over its leadership, finances and long-term strategy.

OpenAI President Greg Brockman has argued that executive departures at a fast-growing company are not necessarily unusual. The company has also continued hiring and reshaping its leadership structure as it moves from an AI research organisation into a much larger technology business.

For Malone, the next step remains unclear. He has not publicly explained why he left OpenAI, and the company has not suggested that his departure will slow its infrastructure plans.

The bigger question is whether OpenAI can execute its enormous computing strategy while keeping costs under control and dealing with growing public resistance to AI data centres.

The company is effectively trying to solve two problems at once: build enough infrastructure to stay ahead in the global AI competition and convince communities that the enormous facilities required to power that technology are worth the cost.

Malone’s departure is therefore more than another executive change. It comes at a moment when OpenAI’s physical infrastructure has become just as important to its future as its AI models. How successfully the company manages that expansion could have a major bearing on its ambitions, finances and potential IPO in the years ahead.

 

Categories
Technology

OpenAI’s new Chip promises faster AI

OpenAI is taking a bigger role in the hardware powering artificial intelligence after revealing the first performance results of its custom AI chip, Jalapeño. The company says the processor can deliver more AI work while using less power and can significantly cut the time users wait for responses.

The results are important because OpenAI is one of the biggest users of advanced computing hardware, particularly for running AI models at scale. Instead of depending entirely on chips supplied by other companies, OpenAI is now developing its own silicon specifically for AI inference — the process of taking a trained model and using it to respond to user requests.

OpenAI developed Jalapeño with semiconductor and networking company Broadcom. The chip is not being positioned as a general-purpose processor. It has been designed around the specific demands of large language models and AI applications, where speed, memory movement and power consumption can have a major impact on operating costs.

The company tested Jalapeño using InferenceX, a public benchmark developed by SemiAnalysis to measure AI inference performance. OpenAI tested the chip with three large models: GPT-OSS 120B, DeepSeek R1 670B and Kimi K2.5 1T.

The results were striking. OpenAI said Jalapeño delivered between 1.5 and 1.9 times more AI work per watt at peak throughput compared with the Nvidia systems used in the tests. It also recorded between 1.7 and 3.6 times lower end-to-end latency. In simple terms, the chip was able to process AI workloads more efficiently while reducing the time taken to produce responses.

That combination matters because AI companies face two major challenges as usage grows: computing capacity and electricity consumption. A system that can produce more output using less power can potentially serve more users without requiring a proportional increase in infrastructure.

OpenAI said Jalapeño has a 700-watt rating, while its measured sustained power remained at or below 550 watts during the workloads tested. The company compared its performance with Nvidia’s high-end GB200 and GB300 systems. On the three tested models, OpenAI reported substantial improvements in performance per watt and response latency.

The company is particularly interested in reducing latency because AI is increasingly being used for interactive tasks. Chatbots, coding assistants and AI agents need to respond quickly, especially when they are carrying out multiple steps on behalf of a user. A delay of a few seconds may become much more noticeable when an AI agent has to make several calls before completing a task.

OpenAI’s approach is to design the entire system around AI inference rather than treating the chip as an isolated component. The company has worked on the processor, memory, networking and software as a combined system. This allows engineers to address bottlenecks that can occur when information has to constantly move between different parts of an AI data centre.

Memory is particularly important for modern AI models. During inference, large amounts of information must be moved and accessed quickly as the model generates an answer. OpenAI has therefore designed Jalapeño to keep critical data closer to where it is required, reducing some of the communication overhead that can slow down AI systems.

The company also says artificial intelligence itself played a role in developing the chip. OpenAI engineers used its AI tools to explore designs, improve software and speed up verification. According to the company, Jalapeño moved from initial design to tapeout in about nine months.

OpenAI also used Codex and GPT-Astra to optimise software for several open-weight AI models. The company reported that some AI-generated implementations for specific model components were 1.5 to 1.8 times faster than existing implementations created by human engineers. However, these figures apply to selected components rather than complete AI models, so they should not be interpreted as an overall model-speed increase.

Despite the strong benchmark numbers, Jalapeño is not expected to replace Nvidia hardware across OpenAI’s infrastructure. The company has made it clear that Nvidia accelerators and chips from other suppliers will continue to be used. Jalapeño is instead being developed as another option that gives OpenAI greater control over how its AI services are powered.

That distinction is important because the current results are based on specific benchmark conditions and selected models. Actual performance at large scale will depend on factors including software optimisation, networking, workload patterns and how the chips perform inside production data centres.

OpenAI plans to begin deploying Jalapeño within its infrastructure by the end of 2026, while wider deployment is expected in 2027. The company is already working on future generations, indicating that Jalapeño is intended to become a long-term hardware platform rather than a one-off experiment.

The move also reflects a broader shift across the AI industry. Technology companies are increasingly developing custom AI chips to improve performance, manage energy use and reduce dependence on a small number of hardware suppliers.

The Jalapeño project is ultimately about having more control over the infrastructure behind ChatGPT and its other AI products. If the early performance gains translate into real-world production workloads, custom silicon could help the company deliver faster AI responses while keeping the enormous cost of running AI systems under greater control.

Jalapeño remains an internal accelerator rather than a chip OpenAI plans to sell commercially. But with wider deployment planned for 2027 and newer generations already being developed, its progress could become an important part of the race to build faster and more efficient AI infrastructure.

 

Categories
Leaders

Tim Cook’s 15-year Apple era nears its end

Apple has begun saying goodbye to Tim Cook as he prepares to step down as the company’s chief executive after 15 years. The company reportedly hosted a farewell gathering at Apple Park in Cupertino on August 23, bringing together around 200 employees and several senior figures from Cook’s time at the helm.

The celebration came just a day before Cook completed 15 years as Apple CEO. He took charge on August 24, 2011, succeeding Steve Jobs, and will officially hand over the CEO role to John Ternus on September 1, 2026. Cook, however, will not be leaving Apple. He will become executive chairman of the company’s board.

The farewell event offered a more personal glimpse of a leader who has generally kept his private life away from the spotlight. The gathering was held partly at Caffe Macs, Apple Park’s cafeteria, while the outdoor courtyard hosted a performance by American pop-rock band OneRepublic. Cook also addressed employees and thanked colleagues for their support during his long tenure.

Among those who reportedly paid tribute to Cook were Laurene Powell Jobs, widow of Apple co-founder Steve Jobs, former Apple chief operating officer Jeff Williams, Apple Services chief Eddy Cue and John Ternus, who currently leads Apple’s hardware engineering division. Cook also acknowledged his partner, Mike, during the event, offering an unusually personal moment in front of his colleagues.

For Apple, the farewell marks the closing of one of the longest and most consequential CEO tenures in the company’s history. Cook joined Apple in 1998 and initially focused on worldwide operations and the supply chain. His expertise in operations helped prepare him for the top job, particularly as Apple expanded its global manufacturing and distribution network.

When Cook became CEO, Apple was already one of the world’s most valuable technology companies. But the business grew dramatically during his leadership. According to Apple, its market capitalisation increased from about $350 billion in 2011 to around $4 trillion, while annual revenue rose from $108 billion in fiscal 2011 to more than $416 billion in fiscal 2025.

Cook’s Apple also moved beyond its traditional dependence on the iPhone, Mac and iPad. The company introduced products including the Apple Watch, AirPods and Apple Vision Pro, while expanding services such as Apple Music, Apple TV, Apple Pay and iCloud. The Services business grew into a more than $100-billion annual business during his tenure.

Another major part of Cook’s legacy has been Apple’s move towards controlling more of its core technology. The company transitioned to its own Apple-designed silicon, improving performance and power efficiency across Mac and other products. Cook also placed greater emphasis on privacy, security, accessibility and environmental initiatives. Apple says its carbon footprint has fallen by more than 60% from 2015 levels under his leadership.

The leadership change was formally announced by Apple in April after what the company described as a long-term succession planning process. Cook will continue working with Apple as executive chairman, including on selected matters such as engagement with policymakers around the world. The arrangement means his departure from the CEO position is not a complete break from the company.

Taking over will be John Ternus, a longtime Apple executive who joined the company in 2001. He became vice-president of Hardware Engineering in 2013 and joined Apple’s executive team as senior vice-president of Hardware Engineering in 2021. During his career, Ternus has worked on products across the iPhone, iPad, Mac, Apple Watch and AirPods lines.

Ternus will also join Apple’s board when he becomes CEO. His first major public test will arrive quickly, with Apple’s September product event expected to be one of the most closely watched moments of the company’s calendar.

The transition is therefore unlikely to look like a sudden change in direction. Apple has stressed continuity, and Ternus has spent much of his career inside the company. Cook is expected to remain available to guide the new leadership while taking a less prominent day-to-day style.

Categories
Technology

Sony Xperia 10 VIII goes official

Sony has launched the Xperia 10 VIII, its latest mid-range smartphone, with a focus on making everyday tasks easier rather than delivering a major hardware overhaul. The new Xperia 10 series phone brings a brighter display, improved stereo speakers, a new payment shortcut and a promise of long-term software support.

The Xperia 10 VIII has been announced for European markets at €599, while its UK price is £549. Sony says the phone will go on sale from mid to late September, with availability and launch offers varying between markets.

One of the biggest changes is the display. The phone features a 6.1-inch Full HD+ OLED screen with a 120Hz refresh rate. Sony says the display is about 50% brighter than the panel on the previous Xperia 10 VII, making it easier to read maps, messages and other content outdoors.

The company has also added automatic colour adjustment designed to improve visibility in bright surroundings. The 120Hz refresh rate should make scrolling through websites, social media feeds and apps feel smoother. The display is protected by Corning Gorilla Glass Victus 2.

Sony has also upgraded the phone’s stereo speakers. The company says the new speakers deliver fuller sound, making the device more suitable for watching videos, listening to music and playing games without headphones.

The design retains several familiar Xperia features. The handset has a slim, tall form factor and a translucent rear design with a matte finish. It is available in Frosted Grey and Misty Lilac, while other markets may offer additional colour options.

The Xperia 10 VIII continues to offer features that have become less common on mid-range smartphones. These include a dedicated camera shutter button, a 3.5mm headphone jack and support for expandable storage through a microSD card. The phone can reportedly support microSD cards of up to 2TB.

Under the hood, however, Sony has kept much of the previous model’s hardware. The Xperia 10 VIII is powered by Qualcomm’s Snapdragon 6 Gen 3 processor, paired with 8GB of RAM and 128GB of internal storage. It runs Android 16 out of the box.

The decision to retain the Snapdragon 6 Gen 3 means the Xperia 10 VIII is not positioned as a major performance upgrade over its predecessor. Instead, Sony has concentrated on features that users encounter during everyday use, including the display, sound, battery and software experience.

The smartphone carries a 5,000mAh battery, with Sony claiming that it can provide up to two days of use on a single charge. Charging is supported through USB Power Delivery, with charging speeds of up to 30W.

Sony is also introducing a new Point & Pay function. By double-pressing the power button, users can quickly open a dedicated menu containing payment and loyalty applications. The shortcut is designed to make it quicker to access digital payment services without first opening the phone and searching through apps.

The company is putting considerable emphasis on long-term software support. Sony promises up to four operating system upgrades and six years of security updates for the Xperia 10 VIII. This could make the phone more attractive to buyers who intend to keep their device for several years.

The camera system has not received a major hardware redesign. At the back, the Xperia 10 VIII features a 50-megapixel main camera alongside a 13-megapixel ultra-wide camera. The main camera supports optical and electronic image stabilisation, while an 8-megapixel camera is used for selfies.

Sony has focused instead on improving image processing, particularly for photographs taken in difficult lighting conditions. The camera setup also works with the phone’s dedicated physical shutter button, allowing users to launch the camera and take pictures quickly.

Battery longevity is another area where Sony says it has concentrated on long-term ownership. The company has designed the battery to maintain its performance over several years, rather than simply chasing faster charging speeds or a larger battery.

The Xperia 10 VIII also retains Sony’s emphasis on audio flexibility. Users can connect wired headphones through the 3.5mm port, while Bluetooth and other wireless audio options are also supported.

At €599, the Xperia 10 VIII enters a competitive mid-range smartphone market. Phones at this price point increasingly offer faster processors, advanced cameras and high-refresh-rate displays. Sony is therefore betting on a different combination of features: a bright OLED display, long software support, expandable storage, wired audio and a familiar Xperia design.

The price is also higher than the previous generation’s launch pricing in Europe and the UK, making the new model’s long-term support and everyday-use features particularly important for potential buyers.

 

Categories
Corporate

Hindustan Copper falls 7% to ₹534 on OFS

Shares of Hindustan Copper fell sharply on Tuesday, August 25, after the Central government opened an Offer for Sale (OFS) to sell part of its stake in the state-owned copper producer. The stock dropped as much as 7% during morning trade as investors reacted to the discounted offer price and the possibility of additional shares entering the market.

Hindustan Copper shares fell as much as 6.88% to ₹534 on the BSE in early trade. The stock had closed at ₹573.55 on Monday. The decline came soon after the government announced the OFS with a floor price of ₹514 per share.

The government is offering an initial 3% stake in Hindustan Copper, equivalent to 2,90,10,721 shares. It has also kept a green-shoe option to sell an additional 3% if there is strong demand or oversubscription. If the full 6% stake is sold, the government could raise around ₹3,000 crore at the floor price.

The ₹514 floor price is around 10.4% below Hindustan Copper’s previous closing price of ₹573.55. The discount immediately became a key concern for investors because the OFS provides institutional buyers an opportunity to acquire the shares at a price significantly below the stock’s previous market value.

An OFS is a mechanism through which existing shareholders, including the government, sell shares directly through the stock exchange. Unlike a fresh issue of shares, the money raised goes to the selling shareholder rather than the company. In this case, the proceeds will accrue to the government as part of its broader public-sector disinvestment programme.

The OFS opened for non-retail investors on Tuesday. Retail investors and eligible employees will be able to participate on Wednesday, August 26. Ten% of the offer has been reserved for retail investors, while 25,000 shares have been set aside for eligible employees.

The government has returned to selling shares in Hindustan Copper through the OFS route after several years. The stake sale is part of its wider effort to raise funds through disinvestment in public-sector companies. The government has already raised ₹52,716 crore through PSU disinvestment during the current financial year, according to market data.

For investors, the immediate pressure on Hindustan Copper shares is largely linked to the increased supply of stock. When a large shareholder offers shares at a discount, the market price can come under pressure as traders adjust their expectations. The possibility of the green-shoe option being exercised adds to concerns about additional supply.

However, the OFS comes at a time when the copper market itself remains an important area of investor interest. Copper prices have remained elevated globally, supported by expectations of strong demand from infrastructure, power, electric vehicles and renewable energy projects.

Hindustan Copper is India’s only vertically integrated copper producer and has significant mining operations. The company has been expanding its production capacity as demand for copper is expected to increase over the coming years.

Copper is widely used in power transmission, construction, electronics, electric vehicles and renewable energy equipment. The global shift towards electrification has strengthened expectations for long-term copper demand. This has also supported investor interest in copper-related stocks, including Hindustan Copper.

The company’s recent market performance had reflected this positive sentiment. Hindustan Copper shares had risen in recent sessions, supported partly by stronger copper prices and expectations of increased demand. The government stake sale has now introduced a fresh short-term factor for the stock.

The OFS also comes against the backdrop of the government’s broader asset monetisation and disinvestment strategy. Selling stakes in public-sector companies allows the government to raise resources while reducing its ownership in listed enterprises.

For existing Hindustan Copper shareholders, the key issue will now be how the market absorbs the additional shares. Strong demand for the OFS could help the sale proceed smoothly, while weak demand could keep the stock under pressure.

The floor price of ₹514 also provides an important reference point for investors. Although the stock was trading above this level in the open market, the discount means investors are likely to compare the prevailing market price with the OFS price before making fresh purchases.

The government has appointed Emkay Global Financial Services, DAM Capital Advisors and IDBI Capital Markets & Securities as brokers for the OFS, with DAM Capital acting as the settlement broker.

Hindustan Copper’s stock movement will now depend on both the response to the government stake sale and broader trends in copper prices. Investors will also watch whether the government exercises the additional 3% green-shoe option.

The government expects the transaction to support its disinvestment programme, while investors will be watching demand closely when retail participation begins on Wednesday. The response to the OFS could determine the stock’s near-term direction after Tuesday’s sharp decline.

 

Categories
Beyond

Centre plans private operation of 11 AAI airports

The Centre has taken another step towards expanding private participation in India’s airport sector, giving in-principle approval to lease out 11 Airports Authority of India (AAI) airports to private operators under the public-private partnership (PPP) model.

The airports will be offered in five bundles, with each bundle going to a single private concessionaire for a proposed 50-year concession. The Public Private Partnership Appraisal Committee (PPPAC) approved the proposal in principle at its meeting on August 4, according to official documents.

The proposed airport bundles are designed to combine larger, established airports with smaller facilities. The five groups are Amritsar-Kangra-Gaggal, Varanasi-Gaya-Kushinagar, Bhubaneswar-Hubballi, Raipur-Aurangabad and Tiruchirappalli-Tirupati.

The government’s decision comes as India’s aviation sector continues to expand and airports across the country face growing demand for better infrastructure and passenger facilities. By bringing private companies into the operation and development of these airports, the Centre hopes to attract fresh investment while improving efficiency and service quality.

The bundling strategy is particularly aimed at making smaller airports more financially attractive to private operators. Instead of bidding for an individual airport, companies will compete for a group that combines a stronger airport with one or more smaller facilities. The idea is that revenues and passenger traffic from the larger airport can support investment and development at the smaller one.

Five airports have been identified as the larger or anchor facilities in the proposed groups — Amritsar, Varanasi, Bhubaneswar, Raipur and Tiruchirappalli. They will be paired with Kangra-Gaggal, Gaya, Kushinagar, Hubballi, Aurangabad and Tirupati.

Under the proposed PPP concession, private operators will take responsibility for the operation, management and development of the airports. This will include passenger terminals and city-side infrastructure, along with the investment required to expand facilities as traffic increases. The estimated investment by the private concessionaires across the 11 airports is around ₹8,622 crore.

The proposed concession period of 50 years gives operators a long-term horizon to recover their investments and develop airport infrastructure. The bidding mechanism is expected to use the per-passenger fee for domestic traffic as the key parameter, allowing companies to compete for the right to operate the bundled airports.

However, the government is also trying to ensure that the next round of airport privatisation does not result in excessive concentration of assets among a few large operators.

The Finance Ministry has raised concerns about the increasingly concentrated nature of India’s aviation industry. Officials have specifically flagged the possibility that excessive market concentration or over-leveraging by private airport operators could create risks across multiple projects.

To address this, the Civil Aviation Ministry has proposed capping the number of airport bundles that a single bidder can win. The exact limit has not yet been decided. The ministry is working on the details and is expected to place the final proposal before the PPPAC.

The proposed cap could become an important part of the bidding process because India’s airport market is already dominated by a handful of major private operators. The government wants to encourage private investment without allowing one company to accumulate too many airport concessions.

The proposed arrangement also includes measures concerning existing AAI employees. The government has suggested a one-year joint management period involving AAI staff after the private concessionaire takes over. The private operator would also be required to retain 60% of AAI employees for up to three years under the proposed structure.

At the same time, private operators will not control every airport-related function. AAI will continue to handle air traffic control and Communication, Navigation and Surveillance services. Cargo-related operations will also continue to involve AAI Cargo Logistics and Allied Services Company, or AAICLAS.

The latest proposal is part of the Centre’s broader airport privatisation programme. India has increasingly relied on PPPs as part of its infrastructure and economic policy, bringing private capital and management expertise into airport development. The government has argued that the model can help modernise airports while allowing AAI to generate revenue and focus resources on other parts of the country’s aviation network.

For passengers, the impact of the proposed airport privatisation will ultimately depend on how the new concessionaires invest in the facilities. Improvements could include expanded terminals, better passenger amenities, upgraded technology and smoother airport operations. Smaller airports could also benefit from greater connectivity and infrastructure investment if the bundled model works as intended.

The government now needs to complete the remaining steps before the airports can formally be put out for bids. The in-principle approval from the PPPAC moves the proposal forward, but the final concession structure and bidding conditions will need to be settled before private companies can take part in the process.

The move also signals the Centre’s willingness to deepen private participation in aviation infrastructure while attempting to maintain competition. With 11 AAI airports being prepared for 50-year PPP concessions, the next phase of airport privatisation could bring significant changes to how some of India’s important regional aviation hubs are operated and developed.

The challenge for the Centre will be to strike the right balance: attract enough private capital to modernise airports, make smaller facilities commercially viable, protect employees and passengers, and prevent excessive concentration in an already competitive but increasingly consolidated aviation market.

Categories
Leaders

Volkswagen Chief warns crisis is more than critical

Volkswagen is facing a major turning point, with Chief Executive Officer Oliver Blume warning that the German automaker’s situation is “more than critical” as it struggles with rising costs, weak profitability, excess production capacity and intensifying competition from Chinese carmakers.

Blume’s warning comes as Volkswagen prepares for a fresh round of discussions with employees over cost-cutting measures, possible job reductions and the future of several German factories. The company is already undergoing one of the biggest restructuring programmes in its history, but management believes the measures taken so far are not enough to restore the group’s competitiveness.

The Volkswagen Group is under pressure from several directions at once. Its business in China, one of its most important markets, has weakened sharply, while Chinese manufacturers are increasingly entering European markets with competitively priced electric and hybrid vehicles. At the same time, US tariffs have made it more expensive for Volkswagen to sell vehicles in America.

Blume said Volkswagen’s operating return of around 3.8 per cent was respectable given the difficult market environment, but still too low to generate the money needed for new technologies, products and production facilities.

China has become one of Volkswagen’s biggest challenges. The Chinese auto market has contracted by more than 20 per cent since the beginning of the year, according to Blume, while hundreds of new models have entered the market.

Chinese automakers are also expanding rapidly outside their home market. Volkswagen says Chinese manufacturers are gaining market share in Europe, where they can compete aggressively on price, particularly in electric vehicles and plug-in hybrids. The pressure is forcing European manufacturers to rethink their costs, production strategies and product portfolios.

For Volkswagen, the problem is not simply falling sales. The company has a large manufacturing network and significant fixed costs, making it difficult to adjust quickly when demand changes. Blume has warned that Volkswagen is producing around 500,000 vehicles more than the European market can absorb, highlighting the scale of its excess capacity.

The company’s German factories are at the centre of the restructuring debate. Blume is scheduled to meet employees at several locations, including the Volkswagen headquarters in Wolfsburg and plants in Zwickau and Emden, to explain the company’s plans.

Volkswagen has not announced that any specific plant will be closed. However, Blume has said the company currently cannot see how facilities in Emden, Hannover, Zwickau and Neckarsulm could remain profitable into the 2030s under present conditions.

Factory closures would be a major step for Volkswagen and its workforce. Blume has described closures as the “last and most expensive solution”, with the company also considering alternative industrial uses for some sites.

The issue has already created tension with powerful German labour representatives. Unions have criticised management’s savings plans and are expected to resist measures that could result in further job losses or changes to production locations.

Volkswagen has already agreed to significant employment reductions in Germany. The group has ordered cuts involving around 50,000 jobs, with agreements already reached with approximately 37,000 employees, according to Blume.

However, recent reports indicate that the company is considering further measures as part of its broader restructuring. Reuters reported that the potential scale of additional action could involve up to another 50,000 positions, although this figure should not be treated as a confirmed final job-cut target.
Volkswagen is also looking at reducing its model range and production capacity to better match demand. The aim is to lower overheads and free up funds for electric vehicles, software and other technologies that will shape the next phase of the automotive industry.

Volkswagen is also facing a tougher business environment in the United States. The company says US tariffs alone are costing the group approximately €5 billion a year. Vehicle tariffs have risen sharply compared with two years ago, increasing the cost of European-built vehicles entering the US market.

That adds another layer of pressure at a time when Volkswagen is already trying to improve margins. The company has been forced to balance investment in electric vehicles and new technology with the need to reduce costs across its traditional manufacturing operations.

Despite the challenges, Volkswagen says its transformation is beginning to produce results in some areas. The company reported strong demand for its newer electric models in Europe, with its European order bank for fully electric vehicles increasing by more than 50 per cent in the first half of 2026. Its new electric urban car family also received more than 70,000 orders in its first few weeks.

Volkswagen expects a difficult period ahead, but management maintains that the company has the financial strength and products needed to recover if it can improve its cost structure.

For employees, investors and the wider German auto industry, however, the next few weeks could be crucial. Volkswagen is expected to use upcoming staff meetings to explain the scale of the restructuring and seek support for further savings.

Volkswagen cannot rely on its traditional strengths alone. Rising Chinese competition, changing consumer demand, US tariffs and high European production costs are forcing one of the world’s biggest automakers to make difficult decisions.

The company now faces the challenge of cutting costs without weakening its ability to invest in the electric and digital technologies needed to compete in the future.

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Onion prices at ₹42/kg, Kanda Express rolls

Onion prices have risen sharply across several parts of India, putting fresh pressure on household budgets and prompting the Centre to step in with emergency measures. From Monday, August 24, the government has started operating special trains, called Kanda Express, to move onions from Nashik in Maharashtra to major consumption centres where prices have climbed well above the national average.

The move comes after the average retail price of onions rose to around ₹42 per kg, according to official data. This is nearly 45% higher than the price a year ago and about 19% above the level recorded a month earlier. The sharp increase has become a concern for consumers as onion is a daily kitchen staple and a sustained rise can add to overall food inflation.

The government has identified Delhi, Chennai, Kochi and Guwahati as key destinations for the Kanda Express because onion prices in these markets are significantly higher than the national average. The idea is straightforward: move stocks from regions where supplies are relatively comfortable to markets where consumers are paying more.

Delhi has seen one of the steepest increases. Retail onion prices have reached around ₹65 per kg, compared with about ₹35 per kg a year earlier. In Chennai, prices have climbed to nearly ₹58 per kg, against ₹33 per kg last year. Onion prices have also remained elevated in parts of Kerala and Assam.

For households, the increase is particularly noticeable because onions are used regularly in Indian cooking. A rise of even ₹10-20 per kg can add to monthly grocery bills, especially for families that buy onions in larger quantities. Restaurants, hotels and food businesses are also likely to feel the impact because onions are a basic ingredient in a wide range of dishes.

The current price rise has been linked mainly to lower onion output and tighter supplies. When arrivals fall while demand remains steady, wholesale prices tend to rise, eventually pushing up retail rates. The government is therefore trying to address the immediate supply imbalance rather than allowing prices to rise further.

The Kanda Express is one part of that response. The Centre is also preparing to release onions from its buffer stock into the market. The aim is to increase availability in areas where prices have risen sharply and provide some relief to consumers.

The government’s buffer-stock strategy is not new. Onions are among the essential commodities for which the Centre maintains stocks that can be released when prices rise sharply. By bringing additional supplies into the market, authorities hope to reduce the gap between demand and availability and prevent a further escalation in prices.

The latest intervention also highlights the importance of India’s onion supply chain. Maharashtra is one of the country’s major onion-producing states, with Nashik serving as an important production and trading hub. Moving onions directly from the region to major consuming centres by rail can help transport larger quantities more efficiently and quickly than relying entirely on road movement.

The key question for consumers is how quickly the additional supply will translate into lower onion prices in local markets. The government intervention may take some time to work through the supply chain, particularly if wholesale and retail traders are holding stocks purchased at higher prices.

The Centre is also monitoring the production outlook to assess whether the current shortage is temporary or likely to continue. If arrivals improve in the coming weeks, prices could ease naturally. But if supplies remain tight, further intervention may be required.

The timing is important because rising prices of other food items could add to household expenses. Sugar prices, for instance, have also moved higher in recent weeks. Official data cited in reports showed retail sugar prices at around ₹62.50 per kg on August 22, compared with ₹46 per kg a month earlier. In Delhi and Mumbai, prices were around ₹65 and ₹69 per kg respectively.

The combination of higher onion and sugar prices could add to concerns over food inflation, particularly if the increases persist. Onion prices are closely watched by policymakers because of their importance in household consumption and their potential impact on food-price expectations.

The government will therefore be hoping that the Kanda Express and the release of buffer stocks can improve availability quickly. The special trains are expected to transport onions from Nashik to markets where prices have risen significantly, helping bridge the supply gap.

The initiative also provides a reminder of how quickly agricultural prices can change. Even when overall production appears adequate, differences in regional supply, transportation costs, storage and market arrivals can create sharp price variations between cities.

For consumers in Delhi, Chennai, Kochi, Guwahati and other affected markets, the immediate concern is simple: when will onion prices come down? The answer will depend on how much additional stock reaches the markets and whether fresh arrivals improve.

The Centre’s strategy is focused on increasing supplies and preventing further price escalation. The Kanda Express, alongside the release of buffer-stock onions, is expected to play a key role in that effort.

If the additional supplies reach deficit markets quickly, consumers could see some relief in the coming days. But with production and arrivals still being closely monitored, the government will need to keep a close watch on the market to ensure that the latest onion price surge does not turn into a prolonged food inflation problem.