Artificial intelligence

Beijing seeks to curb excess AI investment while sustaining growth

China has pledged to rein in excessive competition in AI, signalling Beijing’s desire to avoid wasteful investment while keeping the technology central to its economic strategy.

The National Development and Reform Commission stated that provinces should develop AI in a coordinated manner, leveraging local strengths to prevent duplication and overlap. Officials in China emphasised the importance of orderly flows of talent, capital, and resources.

The move follows President Xi Jinping’s warnings about unchecked local investment. Authorities aim to prevent overcapacity problems, such as those seen in electric vehicles, which have fueled deflationary pressures in other industries.

While global investment in data centres has surged, Beijing is adopting a calibrated approach. The state also vowed stronger national planning and support for private firms, aiming to nurture new domestic leaders in AI.

At the same time, policymakers are pushing to attract private capital into traditional sectors, while considering more central spending on social projects to ease local government debt burdens and stimulate long-term consumption.

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Meta faces turmoil as AI hiring spree backfires

Mark Zuckerberg’s ambitious plan to assemble a dream team of AI researchers at Meta has instead created internal instability.

High-profile recruits poached from rival firms have begun leaving within weeks of joining, citing cultural clashes and frustration with the company’s working style. Their departures have disrupted projects and unsettled long-time executives.

Meta had hoped its aggressive hiring spree would help the company rival OpenAI, Google, and Anthropic in developing advanced AI systems.

Instead of strengthening the company’s position, the strategy has led to delays in projects and uncertainty about whether Meta can deliver on its promises of achieving superintelligence.

The new arrivals were given extensive autonomy, fuelling tensions with existing teams and creating leadership friction. Some staff viewed the hires as destabilising, while others expressed concern about the direction of the AI division.

The resulting turnover has left Meta struggling to maintain momentum in its most critical area of research.

As Meta faces mounting pressure to demonstrate progress in AI, the setbacks highlight the difficulty of retaining elite talent in a fiercely competitive field.

Zuckerberg’s recruitment drive, rather than propelling Meta ahead, risks slowing down the company’s ability to compete at the highest level of AI development.

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Stethoscope with AI identifies heart issues in seconds

A new stethoscope powered by AI could enable doctors to identify three serious heart conditions in just seconds, according to UK researchers.

The device replaces the traditional chest piece with a small sensor that records both electrical signals from the heart and the sound of blood flow, which are then analysed in the cloud by AI trained on large datasets.

The AI tool has shown strong results in trials across more than 200 GP practices, with patients tested using the stethoscope being more than twice as likely to be diagnosed with heart failure within 12 months compared with those assessed through usual care.

It was also 3.45 times more likely to detect atrial fibrillation and almost twice as likely to identify heart valve disease.

Researchers from Imperial College London and Imperial College Healthcare NHS Trust said the technology could help doctors provide treatment at an earlier stage instead of waiting until patients present in hospital with advanced symptoms.

The findings, known as Tricorder, will be presented at the European Society of Cardiology Congress in Madrid.

The project, supported by the National Institute for Health and Care Research, is now preparing for further rollouts in Wales, south London and Sussex. Experts described the innovation as a significant step in updating a medical tool that has remained largely unchanged for over 200 years.

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How local LLMs are changing AI access

As AI adoption rises, more users explore running large language models (LLMs) locally instead of relying on cloud providers.

Local deployment gives individuals control over data, reduces costs, and avoids limits imposed by AI-as-a-service companies. Users can now experiment with AI on their own hardware thanks to software and hardware capabilities.

Concerns over privacy and data sovereignty are driving interest. Many cloud AI services retain user data for years, even when privacy assurances are offered.

By running models locally, companies and hobbyists can ensure compliance with GDPR and maintain control over sensitive information while leveraging high-performance AI tools.

Hardware considerations like GPU memory and processing power are central to local LLM performance. Quantisation techniques allow models to run efficiently with reduced precision, enabling use on consumer-grade machines or enterprise hardware.

Software frameworks like llama.cpp, Jan, and LM Studio simplify deployment, making local AI accessible to non-engineers and professionals across industries.

Local models are suitable for personalised tasks, learning, coding assistance, and experimentation, although cloud models remain stronger for large-scale enterprise applications.

As tools and model quality improve, running AI on personal devices may become a standard alternative, giving users more control over cost, privacy, and performance.

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India to host OpenAI’s new Stargate data centre

OpenAI is preparing to build a significant new data centre in India as part of its Stargate AI infrastructure initiative. The move will expand the company’s presence in Asia and strengthen its operations in its second-largest market by user base.

OpenAI has already registered as a legal entity in India and begun assembling a local team.

The company plans to open its first office in New Delhi later this year. Details regarding the exact location and timeline of the proposed data centre remain unclear, though CEO Sam Altman may provide further information during his upcoming visit to India.

The project represents a strategic step to support the company’s growing regional AI ambitions.

OpenAI’s Stargate initiative, announced by US President Donald Trump in January, involves private sector investment of up to $500 billion for AI infrastructure, backed by SoftBank, OpenAI, and Oracle.

The initiative seeks to develop large-scale AI capabilities across major markets worldwide, with the India data centre potentially playing a key role in the efforts.

The expansion highlights OpenAI’s focus on scaling its AI infrastructure while meeting regional demand. The company intends to strengthen operational efficiency, improve service reliability, and support its long-term growth in Asia by establishing local offices and a significant data centre.

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Schneider joins SK Telecom on new AI data centre project in Ulsan

SK Telecom has expanded its partnership with Schneider Electric to develop an AI Data Centre (AIDC) in Ulsan.

Under the deal, Schneider Electric will supply mechanical, electrical and plumbing equipment, such as switchgear, transformers, automated control systems and Uninterruptible Power Supply units.

The agreement builds on a partnership announced at Mobile World Congress 2025 and includes using Schneider’s Electrical Transient Analyser Program within SK Telecom’s data centre management system.

It will allow operations to be optimised through a digital twin model instead of relying only on traditional monitoring tools.

Both companies have also agreed on prefabricated solutions to shorten construction times, reference designs for new facilities, and joint efforts to grow the Energy-as-a-Service business.

A Memorandum of Understanding extends the partnership to other SK Group affiliates, combining battery technologies with Uninterruptible Power Supply and Energy Storage Systems.

Executives said the collaboration would help set new standards for AI data centres and create synergies across the SK Group. It is also expected to support SK Telecom’s broader AI strategy while contributing to sustainable and efficient infrastructure development.

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Analyst warns AI will make stocks obsolete in favour of Bitcoin

Analyst Jordi Visser warns AI could make traditional stocks obsolete by speeding up innovation, making public companies inefficient investments. He said Bitcoin is a longer-lasting investment, based on belief rather than fleeting corporate ideas.

Visser suggested that AI could compress a century of innovation into just five years, reshaping finance and capital markets. He believes investors will prefer belief assets like Bitcoin, noting its long-term resilience mirrors gold’s role as a store of value.

Momentum behind Bitcoin adoption is also gathering elsewhere. Eric Trump told the Bitcoin Asia 2025 conference that the cryptocurrency could reach $1 million as nation states, companies, and wealthy families add it to their reserves.

Public firms are shifting business models to hold Bitcoin directly, diverting capital from traditional equity markets.

Bitcoin’s market capitalisation currently exceeds $2.1 trillion, and some analysts predict it could surpass gold in the decades ahead. Its global, yield-generating design in DeFi could help Bitcoin surpass gold as a store of value.

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South Korea to sharply increase spending to power AI-based growth

South Korea’s government has outlined a 2026 budget totalling 728 trillion won, a substantial 8.1 percent increase and the most significant rise in four years.

The new administration in South Korea, under President Lee Jae-myung, is using expansionary fiscal measures to drive innovation amid economic headwinds.

Research and development spending will see a record 19.3 percent jump to 35.3 trillion won, with AI receiving the steepest increase. Planned AI expenditure of 10.1 trillion won marks a threefold rise over 2025 and includes procuring 15,000 high-performance GPUs.

Industrial policy funding will grow by 14.7 percent, while social welfare and defence allocations also rise by over 8 percent. The fiscal deficit is expected to widen to 4.0 percent of GDP, with the public debt ratio forecast to reach 51.6 percent.

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Legal barriers and low interest delay Estonia’s AI rollout in schools

Estonia’s government-backed AI teaching tool, developed under the €1 million TI-Leap programme, faces hurdles before reaching schools. Legal restrictions and waning student interest have delayed its planned September rollout.

Officials in Estonia stress that regulations to protect minors’ data remain incomplete. To ensure compliance, the Ministry of Education is drafting changes to the Basic Schools and Upper Secondary Schools Act.

Yet, engagement may prove to be the bigger challenge. Developers note students already use mainstream AI for homework, while the state model is designed to guide reasoning rather than supply direct answers.

Educators say success will depend on usefulness. The AI will be piloted in 10th and 11th grades, alongside teacher training, as studies have shown that more than 60% of students already rely on AI tools.

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Estonia’s Vocal Image uses AI to boost communication skills

Estonia-based startup Vocal Image is deploying AI to help people improve their vocal and communication skills. Its app features an interactive library of tongue twisters, breathing exercises and suggestions for gestures, all enhanced with automated feedback and personalised coaching tips.

Led by CEO Nick Lahoika, the company has scaled rapidly, achieving upwards of 4 million downloads and serving approximately 160,000 active users.

Vocal Image positions itself as an affordable, mobile-first alternative to traditional one-on-one voice training, rooted in Lahoika’s own journey overcoming speaking anxiety.

The app’s design enables users to practice at home with privacy and convenience, offering daily, bite-sized lessons informed by AI that assess strengths, suggest improvements and nurture confidence with no need for human instructors.

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