Artificial intelligence

Landmark tech deal secures record UK-US AI and energy investment

The UK and US have signed a landmark Tech Prosperity Deal, securing a £250 billion investment package across technology and energy sectors. The agreement includes major commitments from leading AI companies to expand data centres, supercomputing capacity, and create 15,000 jobs in Britain.

Energy security forms a core part of the deal, with plans for 12 advanced nuclear reactors in northeast England. These facilities are expected to generate power for millions of homes and businesses, lower bills, and strengthen bilateral energy resilience.

The package includes $30 billion from Microsoft and $6.8 billion from Google, alongside other AI investments aimed at boosting UK research. It also funds the country’s largest supercomputer project with Nscale, establishing a foundation for AI leadership in Europe.

American firms have pledged £150 billion for UK projects, while British companies will invest heavily in the US. Pharmaceutical giant GSK has committed nearly $30 billion to American operations, underlining the cross-Atlantic nature of the partnership.

The Tech Prosperity Deal follows a recent UK-US trade agreement that removes tariffs on steel and aluminium and opens markets for key exports. The new accord builds on that momentum, tying economic growth to innovation, deregulation, and frontier technologies.

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Lenovo unveils AI Super Agents for next-generation automation

Lenovo is pushing into the next phase of AI with the launch of its AI Super Agents, designed to move beyond reactive systems and perform complex, multi-step tasks autonomously.

The company describes the technology as a cognitive operating system capable of orchestrating multiple specialised agents to deliver results across devices and enterprise systems.

The AI Super Agent extends agentic AI to complete tasks like managing supply chains, booking services, and developing applications. Lenovo’s model combines perception, cognition, and autonomy, letting agents understand intent, make decisions, and adapt in real time.

According to Lenovo, the innovation will serve both individuals and businesses by streamlining workflows, scaling operations, and enhancing decision-making. The company stressed responsible AI, following international standards on ethics, transparency, and data protection.

AI Super Agents will be showcased at Lenovo’s Tech World event in Las Vegas in January 2026. They represent the next step in hybrid AI, combining on-device and enterprise-scale intelligence to enhance productivity and creativity.

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OpenAI explains approach to privacy, freedom, and teen safety

OpenAI has outlined how it balances privacy, freedom, and teen safety in its AI tools. The company said AI conversations often involve personal information and deserve protection like privileged talks with doctors or lawyers.

Security features are being developed to keep data private, though critical risks such as threats to life or societal-scale harm may trigger human review.

The company is also focused on user freedom. Adults are allowed greater flexibility in interacting with AI, within safety boundaries. For instance, the model can engage in creative or sensitive content requests, while avoiding guidance that could cause real-world harm.

OpenAI aims to treat adults as adults, providing broader freedoms as long as safety is maintained. Teen safety is prioritised over privacy and freedom. Users under 18 are identified via an age-prediction system or, in some cases, verified by ID.

The AI will avoid flirtatious talk or discussions of self-harm, and in cases of imminent risk, parents or authorities may be contacted. Parental controls and age-specific rules are being developed to protect minors while ensuring safe use of the platform.

OpenAI acknowledged that these principles sometimes conflict and not everyone will agree with the approach. The company stressed transparency in its decision-making and said it consulted experts to establish policies that balance safety, freedom, and privacy.

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Intel to design custom CPUs as part of NVIDIA AI partnership

The two US tech firms, NVIDIA and Intel, have announced a major partnership to develop multiple generations of AI infrastructure and personal computing products.

They say that the collaboration will merge NVIDIA’s leadership in accelerated computing with Intel’s expertise in CPUs and advanced manufacturing.

For data centres, Intel will design custom x86 CPUs for NVIDIA, which will be integrated into the company’s AI platforms to power hyperscale and enterprise workloads.

In personal computing, Intel will create x86 system-on-chips that incorporate NVIDIA RTX GPU chiplets, aimed at delivering high-performance PCs for a wide range of consumers.

As part of the deal, NVIDIA will invest $5 billion in Intel common stock at $23.28 per share, pending regulatory approvals.

NVIDIA’s CEO Jensen Huang described the collaboration as a ‘fusion of two world-class platforms’ that will accelerate computing innovation, while Intel CEO Lip-Bu Tan said the partnership builds on decades of x86 innovation and will unlock breakthroughs across industries.

The move underscores how AI is reshaping both infrastructure and personal computing. By combining architectures and ecosystems instead of pursuing separate paths, Intel and NVIDIA are positioning themselves to shape the next era of computing at a global scale.

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Character.AI and Google face suits over child safety claims

Three lawsuits have been filed in US federal courts alleging that Character.AI and its founders, with Google’s backing, deployed predatory chatbots that harmed children. The cases involve the family of 13-year-old Juliana Peralta, who died by suicide in 2023, and two other minors.

The complaints say the chatbots were designed to mimic humans, build dependency, and expose children to sexual content. Using emojis, typos, and pop-culture personas, the bots allegedly gained trust and encouraged isolation from family and friends.

Juliana’s parents say she engaged in explicit chats, disclosed suicidal thoughts, and received no intervention before her death. Nina, 15, from New York, attempted suicide after her mother blocked the app, while a Colorado, US girl known as T.S. was also affected.

Character.AI and Google are accused of misrepresenting the app as child-safe and failing to act on warning signs. The cases follow earlier lawsuits from the Social Media Victims Law Center over similar claims that the platform encouraged harm.

SMVLC founder Matthew Bergman stated that the cases underscore the urgent need for accountability in AI design and stronger safeguards to protect children. The legal team is seeking damages and stricter safety standards for chatbot platforms marketed to minors.

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Researchers for OpenAI and Apollo find scheming behaviour in frontier AI models

OpenAI and Apollo Research developed evaluations to reveal hidden misalignment in advanced AI systems, often labelled scheming, and observed scheming-like behaviour in several frontier models, including OpenAI o3, o4-mini, Gemini 2.5 pro and Claude Opus-4.

Researchers treated covert actions, such as deliberately withholding or distorting task-relevant information, as a measurable proxy and stress-tested models across dozens of scenarios.

Scheming occurs when a model outwardly appears aligned while pursuing an alternate goal. The teams used a trader analogy to explain the risk: a rule-breaking broker who covers tracks can seem more compliant than an honest operator who accepts lower gains.

They trained models with deliberative alignment to counter the behaviour, asking them to read and reason about an anti-scheming specification before acting. Hence, models follow safety principles instead of merely avoiding detection.

That training produced about a thirtyfold reduction in covert actions on out-of-distribution tests, with o3 falling from 13 percent to 0.4 percent and o4-mini dropping from 8.7 percent to 0.3 percent.

Nevertheless, rare but serious failures remained, and measurement proved complex. Models often became more aware of being evaluated, and situational awareness can suppress observable scheming without altering underlying aims.

The study relied heavily on access to the models’ chain of thought to probe motivations, so preserving reasoning transparency is crucial for reliable oversight. The teams warned that training practices eroding transparency could make monitoring far harder and let misalignment hide rather than vanish.

OpenAI and Apollo called for broader cross-lab safety evaluations, stronger monitoring tools and continued research into anti-scheming techniques. They renewed their partnership, launched a $500,000 red-teaming challenge focused on scheming and proposed shared testing protocols.

The researchers emphasised there is no evidence that today’s deployed AI models would abruptly begin harmful scheming. Still, the risk will grow as systems take on more ambiguous, long-term, real-world responsibilities instead of short, narrow tasks.

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Google adds AI features to Chrome browser on Android and desktop

Alphabet’s Google has announced new AI-powered features for its Chrome browser that aim to make web browsing more proactive instead of reactive. The update centres on integrating Gemini, Google’s AI assistant, into Chrome to provide contextual support across tabs and tasks.

The AI assistant will help students and professionals manage large numbers of open tabs by summarising articles, answering questions, and recalling previously visited pages. It will also connect with Google services such as Docs and Calendar, offering smoother workflows on desktop and mobile devices.

Chrome’s address bar, the omnibox, is being upgraded with AI Mode. Users can ask multi-part questions and receive context-aware suggestions relevant to the page they are viewing. Initially available in the US, the feature will roll out to other regions and languages soon.

Beyond productivity, Google is also applying AI to security and convenience. Chrome now blocks billions of spam notifications daily, fills in login details, and warns users about malicious apps.

Future updates are expected to bring agentic capabilities, enabling Chrome to carry out complex tasks such as ordering groceries with minimal user input.

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Microsoft builds the world’s most powerful AI data centre in Wisconsin

US tech giant, Microsoft, is completing the construction of Fairwater in Mount Pleasant, Wisconsin, which it says will be the world’s most powerful AI data centre. The facility is expected to be operational in early 2026 after a $3.3 billion investment, with an additional $4 billion now committed for a second site.

The company says the project will help shape the next generation of AI by training frontier models with hundreds of thousands of NVIDIA GPUs, offering ten times the performance of today’s fastest supercomputers.

Beyond technology, Microsoft is highlighting the impact on local jobs and skills. Thousands of construction workers have been employed during the build, while the site is expected to support around 500 full-time roles when the first phase opens, rising to 800 once the second is complete.

The US giant has also launched Wisconsin’s first Datacentre Academy with Gateway Technical College to prepare students for careers in the digital economy.

Microsoft is also stressing its sustainability measures. The data centre will rely on a closed-loop liquid cooling system and outside air to minimise water use, while all fossil-fuel power consumed will be matched with carbon-free energy.

A new 250 MW solar farm is under construction in Portage County to support the commitment. The company has partnered with local organisations to restore prairie and wetland habitats, further embedding the project into the surrounding community.

Executives say the development represents more than just an investment in AI. It signals a long-term commitment to Wisconsin’s economy, education, and environment.

From broadband expansion to innovation labs, the company aims to ensure the benefits of AI extend to local businesses, students, and residents instead of remaining concentrated in global hubs.

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Xbox app introduces Microsoft’s AI Copilot in beta

Microsoft has launched the beta version of Copilot for Gaming, an AI-powered assistant within the Xbox mobile app for iOS and Android. The early rollout covers over 50 regions, including India, the US, Japan, Australia, and Singapore.

Access is limited to users aged 18 and above, and the assistant currently supports English instead of other languages, with broader language support expected in future updates.

Copilot for Gaming is a second-screen companion, allowing players to stay informed and receive guidance without interrupting console gameplay.

The AI can track game activity, offer context-aware responses, suggest new games based on play history, check achievements, and manage account details such as Game Pass renewal and gamer score.

Users can ask questions like ‘What was my last achievement in God of War Ragnarok?’ or ‘Recommend an adventure game based on my preferences.’

Microsoft plans to expand Copilot for Gaming beyond chat-based support into a full AI gaming coach. Future updates could provide real-time gameplay advice, voice interaction, and direct console integration, allowing tasks such as downloading or installing games remotely instead of manually managing them.

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WTO report notes AI’s potential benefit to trade if divides are addressed

The WTO launched the 2025 World Trade Report, titled ‘Making trade and AI work together to benefit all’. The report argues that AI could potentially boost global trade by up to 37% and GDP by 12–13% by 2040, particularly through digitally deliverable services.

It notes that AI can lower trade costs, improve supply-chain efficiency, and create opportunities for small firms and developing countries. Still, it warns that without deliberate action, AI could deepen global inequalities and widen the gap between advanced and developing economies.

The report underscores the need for investment in digital infrastructure, energy, skills, and enabling policies, highlighting the importance of IP protection, competition frameworks, and government support.

A newly developed indicator, the WTO AI Trade Policy Openness Index (AI-TPOI), revealed significant variation in AI-related trade policies across and within income groups.

It assessed three policy areas relevant to AI diffusion: barriers to services trade, restrictions on trade in AI-enabling goods, and limitations on cross-border data flows.

Stronger multilateral cooperation and targeted capacity-building were presented as essential to ensure AI-enabled trade supports inclusive, sustainable prosperity rather than reinforcing existing divides.

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