Big Tech seeks tax, regulatory measures; Payoneer’s local currency bet

Chipmaker NVIDIA is investing $2 billion in AI cloud-computing firm CoreWeave, marking another milestone in the world of AI infrastructure partnerships. 

CoreWeave has become the poster child of the AI boom. Meanwhile, industry watchers have recently raised questions about circular deals within the industry.

Speaking of AI, users can now order food, groceries and even book restaurant tables via conversational AI tools such as ChatGPT, Claude, and Google Gemini, thanks to a new feature on Swiggy. 

Meanwhile, Pinterest plans to cut around 15% of its 4,500-strong global workforce as the social media company embraces AI, CNBC reported. It is unclear which roles or geographies will see job cuts. 

ICYMI: Parents, teens and schools have taken social media giants, including Meta and YouTube, to court over their role in creating addictive content. 

Lastly, in a move that is expected to boost trade between India and European countries and reduce reliance on the US, New Delhi and the EU signed a historic deal on Tuesday, per Reuters. The talks, which reportedly ran on and off for two decades, gained momentum after Washington recently imposed a 50% tariff on some Indian goods. 

European Commission president, Ursula von der Leyen, called the agreement the “mother of all deals”.

In today’s newsletter, we will talk about 

• Big Tech seeks tax, regulatory measures
• Payoneer’s local currency bet
• Policy-driven equity conversations

Here’s your trivia for today: Which country is also the world’s largest archipelago?

Union Budget

Big Tech seeks tax, regulatory measures

India has seen mega investment announcements by Big Tech firms Google, Microsoft and Amazon, and there is a rush to build cloud and AI infrastructure. The industry bodies representing these firms and data centre operators have sought more favourable tax and regulatory measures that would ensure long-term policy certainty. 

Nasscom (National Association of Software and Service Companies) has sought a clear statutory clarification that procuring hosting or colocation services from an Indian data centre operator does not create a business connection or permanent establishment for the foreign CSP when the Indian operator is remunerated at arm’s length, according to Ashish Aggarwal, Vice President and Head of Public Policy, Nasscom.

Policy clarity:

• Assocham (Associated Chambers of Commerce and Industry of India) has also sought full GST input credit on data centre construction, including civil work, power systems, design, engineering, project management, and consultancy services. It has also sought profit-linked income tax deductions.
• With respect to rationalisation of renewable power, Assocham has asked for the redesigning of ISTS (inter-state transmission system) charge waivers with lower capacity thresholds, reduction of wheeling charges, and allowing banking of renewable power for data centre parks. 
• The industry body has also requested the government to increase the budget of IndiaAI compute from Rs 10,000 crore to upwards of Rs 40,000 crore to “reflect real demand for sovereign model and AI use cases”.

Funding Alert

Startup: SpotDraft

Amount: $8M

Round: Series B

Startup: Nivaan Care

Amount: $7M

Round: Series A

Startup: Mysa

Amount: $3.4M

Round: Pre-Series A

Interview

Payoneer’s local currency bet

For years, cross-border transactions were riddled with challenges for Indian small and medium businesses (SMBs) looking to sell overseas, due to high costs, unpredictable settlement timelines, and opaque foreign exchange conversions.

But this landscape has begun to shift, says Gaurav Shisodia, Vice President & Country Manager for India at Payoneer, a global payment platform. According to Shisodia, changes in payment infrastructure and access to local collection systems are enabling a broader range of Indian SMBs to participate in global commerce and look beyond traditional markets such as the United States and the United Kingdom.

Key takeaways:

• Historically, international payments for Indian exporters relied almost entirely on SWIFT transfers. Platforms such as Payoneer allow Indian SMBs to collect payments in buyers’ local currencies through multiple methods while settling funds transparently into Indian bank accounts.
• Improved payment access has also widened the geographical network for Indian exporters. While the US and UK once dominated outbound trade flows, SMBs are increasingly exploring markets in Europe, Middle East, and Southeast Asia.
• Looking ahead, Payoneer plans to deepen its investment in India and is also setting up a product and R&D hub in Gurugram and a global operations centre in Bengaluru. It has also applied for a payment aggregator licence in India.

Events

Policy-driven equity conversations

For millions of women in Tamil Nadu, joining the workforce is only the first hurdle. Staying on, advancing, and balancing paid work with care responsibilities stand as more complex challenges. The upcoming Global Women Summit 2026 aims to place these realities at the centre of policy conversations, bringing together the state, industry, and civil society to think of ways to reimagine women’s work.

‘The Global Women Summit 2026 — SheLeads’, scheduled for January 27 and 28 at the Chennai Trade Centre, is poised to become one of Tamil Nadu’s most significant platforms for shaping the future of women’s work and economic participation.

News & updates

• Deal: Anta Sports Products, China’s biggest sportswear brand, on Tuesday said it would acquire 29.06% stake in German sportswear maker Puma from the Pinault family for 1.5 ‌billion euros ($1.8 billion). The deal will make Anta Sports the biggest shareholder in Puma. 
• Data gathering: Ride-hailing giant Uber said it has set up a new division called the Uber AV Labs through which it will collect data for its autonomous vehicle partners, such as Waymo, Waabi, and Lucid Motors. 
• Turning a corner: Aerospace company Boeing’s sales surged nearly 60% in the fourth quarter as the planemaker battled a string of crises that affected its reputation. At 160, this is its strongest quarter of aeroplane deliveries since 2018. It had made 57 deliveries in the same period last year.

Which country is also the world’s largest archipelago?

Answer: Indonesia

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