OpenAI backs policy push for Europe’s AI uptake

OpenAI and Allied for Startups have released Hacktivate AI, a set of 20 ideas to speed up AI adoption across Europe ahead of the Commission’s Apply AI Strategy.

The report emerged from a Brussels policy hackathon with 65 participants from EU bodies, governments, enterprises and startups, proposing measures such as an Individual AI Learning Account, an AI Champions Network for SMEs, a European GovAI Hub and relentless harmonisation.

OpenAI highlights strong European demand and uneven workplace uptake, citing sector gaps and the need for targeted support, while pointing to initiatives like OpenAI Academy to widen skills.

Broader policy momentum is building, with the EU preparing an Apply AI Strategy to boost homegrown tools and cut dependencies, reinforcing the push for practical deployment across public services and industry.

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European data centre sales surge amid AI boom

Private capital firms are accelerating sales of European data centres, aiming to capitalise on the US-led AI boom. Deals valued at around €17 billion are expected within weeks, highlighting growing investor interest in digital infrastructure.

Oaktree Capital Management has started selling part of Pure DC, its European and Middle Eastern data centre company, valued at up to €5 billion.

Other firms are joining the rush. Swiss investor Partners Group may raise €4 billion from selling Nordic operator atNorth, while Swedish firm EQT has begun selling GlobalConnect, its Nordic broadband and data centre business, potentially worth €8 billion.

Deutsche Bank’s asset manager DWS and telecoms firm Orange are also reported to be selling stakes in European data centres.

The surge in sales reflects strong demand for assets that offer stable, long-term revenues while enabling current owners to fund infrastructure upgrades. So far in 2025, 162 data centre deals worth $46 billion have closed, with 45 more deals valued at $35 billion pending, according to Synergy Research Group.

Analysts note that the trend mirrors last year’s record activity, which saw 287 deals totalling more than $77 billion. Investors remain focused on Europe as AI-driven growth fuels the need for robust digital infrastructure across the continent.

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A new AI strategy by the EU to cut reliance on the US and China

The EU is preparing to unveil a new strategy to reduce reliance on American and Chinese technology by accelerating the growth of homegrown AI.

The ‘Apply AI strategy’, set to be presented by the EU tech chief Henna Virkkunen, positions AI as a strategic asset essential for the bloc’s competitiveness, security and resilience.

According to draft documents, the plan will prioritise adopting European-made AI tools across healthcare, defence and manufacturing.

Public administrations are expected to play a central role by integrating open-source EU AI systems, providing a market for local start-ups and reducing dependence on foreign platforms. The Commission has pledged €1bn from existing financing programmes to support the initiative.

Brussels has warned that foreign control of the ‘AI stack’ (the hardware and software that underpin advanced systems) could be ‘weaponised’ by state and non-state actors.

These concerns have intensified following Europe’s continued dependence on American tech infrastructure. Meanwhile, China’s rapid progress in AI has further raised fears that the Union risks losing influence in shaping the technology’s future.

Several high-potential AI firms have already been hosted by the EU, including France’s Mistral and Germany’s Helsing. However, they rely heavily on overseas suppliers for software, hardware, and critical minerals.

The Commission wants to accelerate the deployment of European AI-enabled defence tools, such as command-and-control systems, which remain dependent on NATO and US providers. The strategy also outlines investment in sovereign frontier models for areas like space defence.

President Ursula von der Leyen said the bloc aims to ‘speed up AI adoption across the board’ to ensure it does not miss the transformative wave.

Brussels hopes to carve out a more substantial global role in the next phase of technological competition by reframing AI as an industrial sovereignty and security instrument.

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Labour market remains stable despite rapid AI adoption

Surveys show persistent anxiety about AI-driven job losses. Nearly three years after ChatGPT’s launch, labour data indicate that these fears have not materialised. Researchers examined shifts in the US occupational mix since late 2022, comparing them to earlier technological transitions.

Their analysis found that shifts in job composition have been modest, resembling the gradual changes seen during the rise of computers and the internet. The overall pace of occupational change has not accelerated substantially, suggesting that widespread job losses due to AI have not yet occurred.

Industry-level data shows limited impact. High-exposure sectors, such as Information and Professional Services, have seen shifts, but many predate the introduction of ChatGPT. Overall, labour market volatility remains below the levels of historical periods of major change.

To better gauge AI’s impact, the study compared OpenAI’s exposure data with Anthropic’s usage data from Claude. The two show limited correlation, indicating that high exposure does not always imply widespread use, especially outside of software and quantitative roles.

Researchers caution that significant labour effects may take longer to emerge, as seen with past technologies. They argue that transparent, comprehensive usage data from major AI providers will be essential to monitor real impacts over time.

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Thousands affected by AI-linked data breach in New South Wales

A major data breach has affected the Northern Rivers Resilient Homes Program in New South Wales.

Authorities confirmed that personal information was exposed after a former contractor uploaded data to the AI platform ChatGPT between 12 and 15 March 2025.

The leaked file contained over 12,000 records, with details including names, addresses, contact information and health data. Up to 3,000 individuals may be impacted.

While there is no evidence yet that the information has been accessed by third parties, the NSW Reconstruction Authority (RA) and Cyber Security NSW have launched a forensic investigation.

Officials apologised for the breach and pledged to notify all affected individuals in the coming week. ID Support NSW is offering free advice and resources, while compensation will be provided for any costs linked to replacing compromised identity documents.

The RA has also strengthened its internal policies to prevent unauthorised use of AI platforms. An independent review of the incident is underway to determine how the breach occurred and why notification took several months.

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Meta unveils Candle cable to boost Asia-Pacific connectivity

Meta has announced Candle, a new submarine cable system designed to enhance digital connectivity across East and Southeast Asia. The 8,000-kilometre network will link Japan, Taiwan, the Philippines, Indonesia, Malaysia, and Singapore by 2028, offering a record 570 terabits per second (Tbps) of capacity.

Developed with regional telecommunications partners, Candle will use advanced 24 fibre-pair technology to deliver Meta’s largest bandwidth performance in the Asia-Pacific region.

The company also confirmed progress on several other subsea infrastructure projects. The Bifrost cable now connects Singapore, Indonesia, the Philippines, and the United States, with Mexico expected to join by 2026, adding 260 Tbps of new capacity.

Meanwhile, Echo currently links Guam and California with the same bandwidth, and Apricot has gone live between Japan, Taiwan, and Guam, with future extensions planned to Southeast Asia.

Together, Candle, Bifrost, Echo, and Apricot will improve intra-Asian connectivity and strengthen digital bridges between Asia and the Americas. These projects are part of Meta’s global network investments, including Project Waterworth and 2Africa, aimed at expanding access to AI and digital infrastructure.

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Jaguar Land Rover begins gradual restart after major cyber-attack

Jaguar Land Rover (JLR) is beginning to restart production after a severe cyber-attack forced the company to shut down factories across several countries. Operations will restart at Wolverhampton, with other sites like Solihull and Halewood reopening gradually in the coming weeks.

The attack, which occurred at the end of August, halted manufacturing and paralysed the carmaker’s IT systems.

The disruption has caused significant financial strain across JLR’s supply chain, with many small businesses facing weeks without income. The government has offered a £1.5 billion loan guarantee to support suppliers, but industry leaders warn the assistance does not go far enough.

Evtec Group chairman David Roberts called the policy ‘toothless’, saying companies still struggle to cover labour and payroll costs after six weeks of zero revenue.

Experts believe recovery will take time, as restarting industrial production involves complex processes that cannot resume instantly. Former Aston Martin boss Andy Palmer warned that some suppliers may not survive the prolonged halt, risking further disruption.

JLR has confirmed its recovery programme is ‘firmly underway’ and that its global parts logistics centre is returning to normal operations, yet full production may remain weeks away.

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Bezos predicts gigantic gains from the current AI investment bubble

Jeff Bezos has acknowledged that an ‘AI bubble’ is underway but believes its long-term impact will be overwhelmingly positive.

Speaking at Italian Tech Week in Turin, the Amazon founder described it as an ‘industrial bubble’ rather than a purely financial.

He argued that the intense competition and heavy investment will ultimately leave society better off, even if many projects fail. ‘When the dust settles and you see who the winners are, societies benefit from those investors,’ he said, adding that the benefits of AI will be ‘gigantic’.

Bezos’s comments come amid surging spending by Big Tech on AI chips and data centres. Citigroup forecasts that investment will exceed $2.8 trillion by 2029.

OpenAI, Meta, Microsoft, Google and others are pouring billions into infrastructure, with projects like OpenAI’s $500 billion Stargate initiative and Meta’s $29 billion capital raise for AI data centres.

Industry leaders, including Sam Altman of OpenAI, warned of an AI bubble. Yet many argue that, unlike the dot-com era, today’s market is anchored by Nvidia and OpenAI, whose products form the backbone of AI development.

The challenge for tech giants will be finding ways to recover vast investments while sustaining rapid growth.

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AI industry faces recalibration as Altman delays AGI

OpenAI CEO Sam Altman has again adjusted his timeline for achieving artificial general intelligence (AGI). After earlier forecasts for 2023 and 2025, Altman suggests 2030 as a more realistic milestone. The move reflects mounting pressure and shifting expectations in the AI sector.

OpenAI’s public projections come amid challenging financials. Despite a valuation near $500 billion, the company reportedly lost $5 billion last year on $3.7 billion in revenue. Investors remain drawn to ambitious claims of AGI, despite widespread scepticism. Predictions now span from 2026 to 2060.

Experts question whether AGI is feasible under current large language model (LLM) architectures. They point out that LLMs rely on probabilistic patterns in text, lack lived experience, and cannot develop human judgement or intuition from data alone.

Another point of critique is that text-based models cannot fully capture embodied expertise. Fields like law, medicine, or skilled trades depend on hands-on training, tacit knowledge, and real-world context, where AI remains fundamentally limited.

As investors and commentators calibrate expectations, the AI industry may face a reckoning. Altman’s shifting forecasts underscore how hype and uncertainty continue to shape the race toward perceived machine-level intelligence.

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Frontier firms reshape work with AI integration

Forward-thinking companies, known as Frontier Firms, are reshaping business by integrating AI deeply into their operations. US employees’ adoption of AI tools has doubled in two years, reflecting a rapid shift.

These firms are not just experimenting but are setting new standards by redesigning workflows to leverage AI, particularly in software development. The impacts are spreading to sales, service, finance, and marketing. Three distinct patterns define this transformation.

The first, human + AI assistant, pairs individuals with AI to eliminate repetitive tasks, allowing developers to focus on design and quality.

The second, human-agent teams, integrate AI as digital workers in workflows for tasks like code testing and compliance, boosting efficiency.

The third, human-led, agent-operated pattern sees AI managing entire processes like automated release pipelines, with humans setting goals and intervening only when needed.

These patterns do not follow a linear path but appear simultaneously across different business functions. A single team might use AI to draft code, test it collaboratively, and automate releases in one day.

As these practices compound, they accelerate innovation and scale. Leaders must embrace these changes to stay competitive, as AI-driven workflows are poised to transform industries beyond software development.

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