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In today’s newsletter:

• Angel tax hit for Singapore, Mauritius 
• Ashneer Grover wants to get out of the gutter
• IAMAI's new leadership to take on Google

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The government recently released a white list of 21 nations that are exempt from angel tax provisions, which initially provided some relief. However, it was noticed that a few important regions were not included in the list.

Investments coming from Singapore, Mauritius, and the Cayman Islands will still be subjected to angel tax.

• Interestingly, these three regions are among the top seven sources of Foreign Direct Investment (FDI) into India. Additionally, investors from regions that are exempt often route their funds through these three countries.

The fact that a 25% angel tax applies in these three regions may discourage investment in India, particularly at a time when startups in the country are already facing fundraising obstacles.

"The implication of this (notification) is that the funding winter will end up getting even more protracted because the clarity that people were seeking has not fully come through…," said Siddarth Pai, founding partner at 3one4 Capital.

The move received mixed responses from the ecosystem, with some expressing concerns about reduced financial inflow into India, while others showed support. 

"Places like Singapore, Mauritius, Cayman Islands and the Netherlands are notorious as pooling destinations. Singapore has a deep relationship with Chinese investors," said an investor.

The angel tax regime was originally introduced in 2012 as an anti-abuse measure to prevent money laundering.

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Ashneer Grover became famous because of his vitriol. In a reality show. In a leaked recording. In interactions with media. In social media posts. Now, he is undoing some of that. At least, that’s the claim.

Grover's lawyer said in the Delhi High Court that his client had deleted specific social media posts against BharatPe. The lawyer further demanded that the company remove references to the 'Grover family' in its accusations.

"I don't know when we went into the gutter. But I want to come out of it now... He has deleted his posts," Grover's lawyer said in court.

This comes after the Delhi High Court on May 16 had remarked that if Grover and BharatPe had both decided to enter the gutter, they should remain there, referring to the disrespectful language used by the parties towards each other.

Grover is currently facing multiple litigations initiated by BharatPe and its co-founders.

• Earlier this month, the Enforcement Directorate filed an FIR against him and his relatives based on a complaint lodged by BharatPe

• The fintech unicorn has also filed a civil lawsuit, seeking up to Rs 88 crore in damages, over alleged financial wrongdoing

• In two separate lawsuits, BharatPe co-founders Shashvat Nakrani and Bhavik Koladiya sued Grover to reclaim their shares, which are allegedly held by him

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It's been just a day since the new governing council of the Internet and Mobile Association of India (IAMAI) was appointed, but they already have their sights set on Big Tech major, Google.

The newly elected members told us that IAMAI's new governing council will meet soon to set an agenda. It is expected that the agenda will include opposing Google's 30% billing commission and supporting a new antitrust framework in the tech industry.

• Googe's billing policy mandates a 15% to 30% commission charge for all in-app purchases made through the Play Store

In the run-up to the IAMAI elections, several homegrown companies voiced their concerns about billing issues. 

One of them was BharatMatrimony's Murugavel Janakiraman, who has secured a seat on the governing council. 

• He pointed out that the IAMAI "didn't do anything" on the matter.

This issue, coupled with IAMAI's position against the need for a digital competition law to regulate Big Tech companies, played a major role in Big Tech companies being voted out of the industry body's governing council. 

• Outgoing members of IAMAI's executive council include representatives of Meta and Google. 

The new council will take charge from the outgoing governing council at IAMAI's Annual General Meeting in June.

Welcome to the AI weekly wrap, your source for the latest developments and controversies in the world of artificial intelligence (AI).

Starting off, OpenAI CEO Sam Altman made headlines last week by expressing the need to regulate AI. But this week, he hinted that OpenAI might consider leaving Europe if it cannot comply with the upcoming AI regulations proposed by the European Union (EU). As part of the draft, companies deploying generative AI tools will be required to disclose any copyrighted material used in their systems. 

• Altman said that OpenAI will make efforts to comply with the regulations before considering any drastic measures

Meanwhile, as the EU treads uncharted territories, setting the stage for global AI governance, Google's CEO Sundar Pichai met with European lawmaker Thierry Breton to establish a temporary "AI Pact." 

• This voluntary agreement aims to set AI standards while the EU finalises its formal AI regulations

However, not all prominent figures share the same optimism about AI. Eric Schmidt, former CEO of Google, voiced his concerns about the potential risks associated with AI-powered products like ChatGPT. Schmidt described AI as an "existential risk" that has the capacity to cause harm or even fatalities if not properly managed. 

This was evident this week when an alarming image started doing the rounds on Twitter.

In a shocking incident, a deepfake image circulated on Twitter, causing widespread panic. The image depicted a large plume of smoke near the Pentagon Complex in Washington DC, leading many to believe that an explosion had occurred. As a result, the S&P 500 index plummeted, wiping off $500 billion from investors' portfolios within minutes. 

• The origins and motivations behind the creation of this deepfake remain unknown.

On a more creative note, Adobe announced its integration of AI technology into Photoshop,  its flagship software for editing images. This marks the beginning of a major initiative by the California-based company to incorporate AI capabilities into its suite of programs for creative professionals.  

More from the world of AI:

• Chip giant Nvidia nears trillion-dollar status on AI bet
• ChatGPT of investment advice is here, JPMorgan trademarks 'IndexGPT' 
• Google will soon show you AI-generated ads

• Bankrupt crypto lender Celsius Network has selected Fahrenheit's proposal to manage a new creditor-owned entity, steering itself out of bankruptcy.
  
  
• Binance suspends wrapped token transfers via Multichain bridge due to persistent transaction delays for days.

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