Capacity development

OpenAI and Oracle join forces for massive AI data centre expansion

OpenAI had signed a significant cloud computing deal with Oracle worth $30 billion per year, aiming to secure around 4.5GW of capacity through the Stargate joint venture, in which Oracle is a key investor.

Oracle plans to develop several large-scale data centres across the United States, including a potential expansion of its Abilene, Texas, site from 1.2GW to 2GW.

According to reports from Bloomberg and the Financial Times, other locations under consideration include Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio, and Pennsylvania.

In addition to its collaboration with Oracle, OpenAI continues using Microsoft Azure as its primary cloud provider and works with CoreWeave and Google. Notably, OpenAI leverages Google’s custom TPUs in some operations.

Despite the partnerships, OpenAI is pursuing plans to build its data centre infrastructure. The company also intends to construct a Stargate campus in the United Arab Emirates, in collaboration with Oracle, Nvidia, Cisco, SoftBank, and G42, and is scouting global locations for future facilities.

The massive investment underscores OpenAI’s growing compute needs and the global scale of its AI ambitions.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

DeepSeek gains business traction despite security risks

Chinese AI company DeepSeek is gaining traction in global markets despite growing concerns about national security.

While government bans remain in place across several countries, businesses are turning to DeepSeek’s models for low cost and firm performance, often ranking just behind OpenAI’s ChatGPT and Google’s Gemini in traffic and market share.

DeepSeek’s appeal lies in its efficiency. With advanced engineering techniques like its ‘mixture-of-experts’ system, the company has reduced computing costs by activating fewer parameters without a noticeable drop in performance.

Training costs have reportedly been as low as $5.6 million — a fraction of what rivals like Anthropic spend. As a result, DeepSeek’s models are now available across major platforms, including AWS, Azure, Google Cloud, and even open-source repositories like GitHub and Hugging Face.

However, the way DeepSeek is accessed matters. While companies can safely self-host the models in private environments, using the mobile app or website means sending data to Chinese servers, a key reason for widespread bans on public-sector use.

Individual consumers often lack the technical control enterprises enjoy, making their data more vulnerable to foreign access.

Despite the political tension, demand continues to grow. US firms are exploring DeepSeek as a cost-saving alternative, and its models are being deployed in industries from telecoms to finance.

Even Perplexity, an American AI firm, has used DeepSeek R1 to power a research tool hosted entirely on Western servers. DeepSeek’s open-source edge and rapid technical progress are helping it close the gap with much larger AI competitors — quietly but significantly.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Amazon reaches one million warehouse robots

Amazon has reached a major milestone with over one million robots now operating in its warehouses.

The one millionth robot, recently deployed to a facility in Japan, marks 13 years since the tech giant began introducing automation through its acquisition of Kiva Systems in 2012.

The robotic presence is fast approaching parity with Amazon’s human workforce, according to The Wall Street Journal. Robots now assist in around 75% of the company’s global deliveries.

The company continues to upgrade its robotic fleet, recently unveiling Vulcan — a dual-armed model equipped with a suction grip and a sense of touch to handle items more delicately.

Amazon is also introducing DeepFleet, a new generative AI model built using Amazon SageMaker.

Designed to optimise robotic movement within fulfilment centres, DeepFleet is expected to improve fleet speed by 10%. The model is trained on Amazon’s operational data, making it highly tailored to the company’s logistical network.

The expansion comes as Amazon opens next-generation fulfilment centres featuring ten times more robots instead of relying solely on existing warehouse models. The first of these facilities opened in late 2024 in Shreveport, Louisiana, signalling a shift toward even greater automation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Grammarly invests in email with Superhuman acquisition

Grammarly announced on Tuesday that it has acquired email client Superhuman to expand its AI capabilities within its productivity suite.

Financial details of the deal were not disclosed by either company. Superhuman, founded by Rahul Vohra, Vivek Sodera and Conrad Irwin, has raised over $114 million from investors such as a16z and Tiger Global, with a last valuation of $825 million.

Grammarly CEO Shishir Mehrotra said the acquisition will enable the company to bring enhanced AI collaboration to millions more professionals, adding that email is not just another app but a crucial platform where users spend significant time.

Superhuman’s CEO Rahul Vohra and his team are joining Grammarly, promising to invest further in improving the Superhuman experience and building AI agents that collaborate across everyday communication tools.

Recently, Superhuman introduced AI-powered features like scheduling, replies and email categorisation. Grammarly aims to leverage the technology to build smarter AI agents for email, which remains a top use case for its customers.

The move follows Grammarly’s acquisition of productivity software Coda last year and the promotion of Shishir Mehrotra to CEO.

In May, Grammarly secured $1 billion from General Catalyst through a non-dilutive investment, repaid by a capped percentage of revenue generated using the funds instead of equity.

The Superhuman deal further signals Grammarly’s commitment to integrating AI deeply into professional communication.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Why AI won’t replace empathy at work

AI is increasingly being used to improve how organisations measure and support employee performance and well-being.

According to Dr Serena Huang, founder of Data with Serena and author of The Inclusion Equation, AI provides insights that go far beyond traditional annual reviews or turnover statistics.

AI tools can detect early signs of burnout, identify high-potential staff, and even flag overly controlling management styles. More importantly, they offer the potential to personalise development pathways based on employee needs and aspirations.

Huang emphasises, however, that ethical use is vital. Transparency and privacy must remain central to ensure AI empowers rather than surveils workers. Far from making human skills obsolete, Huang argues that AI increases their value.

With machines handling routine analysis, people are free to focus on complex challenges and relationship-building—critical skills in sales, leadership, and team dynamics. AI can assist, but it is emotional intelligence and empathy that truly drive results.

To ensure data-driven efforts align with business goals, Huang urges companies to ask better questions. Understanding what challenges matter to stakeholders helps ensure that any AI deployment addresses real-world needs. Regular check-ins and progress reviews help maintain alignment.

Rather than fear AI as a job threat, Huang encourages individuals to embrace it as a tool for growth. Staying curious and continually learning can ensure workers remain relevant in an evolving market.

She also highlights the strategic advantage of prioritising employee well-being. Companies that invest in mental health, work-life balance, and inclusion enjoy higher productivity and retention.

With younger workers placing a premium on wellness and values, businesses that foster a caring culture will attract top talent and stay competitive. Ultimately, Huang sees AI not as a replacement for people, but as a catalyst for more human-centric, data-informed workplaces.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Qantas cyber attack sparks customer alert

Qantas is investigating a major data breach that may have exposed the personal details of up to six million customers.

The breach affected a third-party platform used by the airline’s contact centre to store sensitive data, including names, phone numbers, email addresses, dates of birth and frequent flyer numbers.

The airline discovered unusual activity on 30 June and responded by immediately isolating the affected system. While the full scope of the breach is still being assessed, Qantas expects the volume of stolen data to be significant.

However, it confirmed that no passwords, PINs, credit card details or passport numbers were stored on the compromised platform.

Qantas has informed the Australian Federal Police, the Cyber Security Centre and the Office of the Information Commissioner. CEO Vanessa Hudson apologised to customers and urged anyone concerned to call a dedicated support line. She added that airline operations and safety remain unaffected.

The incident follows recent cyber attacks on Hawaiian Airlines, WestJet and major UK retailers, reportedly linked to a group known as Scattered Spider. The breach adds to a growing list of Australian organisations targeted in 2025, in what privacy authorities describe as a worsening trend.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Student builds AI app to help farmers tackle crop issues

A student is developing an AI-powered app designed to help farmers detect and address crop problems. Soj Gamayon, a communications technology management student at Ateneo de Manila University, was inspired by his family’s farming struggles and his experiences abroad to build AgriConnect PH.

The app uses smart sensors to monitor conditions such as water levels, moisture, and pests, then sends the data to the cloud where it is analysed by AI. Farmers receive real-time alerts with a colour-coded system indicating the severity of risks, helping them respond before crops are damaged.

Gamayon aims to move farmers from reactive responses to proactive management. With updates available at least twice a day and instant alerts for urgent threats, the system offers timely intervention to reduce losses.

Currently supporting cereal crops like rice and corn, the app is set to expand to vegetables and livestock. While the technology is still in development, Gamayon believes AI can revolutionise agriculture and provide Filipino farmers with better tools for resilience.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

MAI-DxO: Microsoft’s New AI diagnoses complex medical cases with 85% accuracy

Microsoft has introduced a new AI-powered diagnostic tool capable of tackling complex medical cases that often baffle expert clinicians. Called MAI-DxO (Microsoft AI Diagnostic Orchestrator), the system has been developed by Microsoft’s AI health unit, founded by DeepMind co-founder Mustafa Suleyman.

When tested on complex real-world cases published in the New England Journal of Medicine, the AI tool correctly diagnosed 85.5%. For comparison, experienced doctors managed to solve only 20% of the same cases without external help.

The tool uses five virtual AI agents, each simulating a medical expert with unique roles, such as choosing tests or proposing hypotheses. The approach, dubbed the ‘chain of debate’, allows for step-by-step reasoning in arriving at diagnoses.

Microsoft trained MAI-DxO using 304 case studies and large language models from leading AI companies, including OpenAI, Google, Meta, and xAI. The AI panel mimics a real-world diagnostic team with significantly faster and more accurate outcomes.

Despite the promising results, Microsoft acknowledges that more validation and regulatory clarity are needed before such tools can be used in clinical practice. The company is currently working with health organisations to test the system further.

The aim is not to replace doctors but to ease their workload by offering a reliable assistant for the most challenging cases. Microsoft says MAI-DxO could represent a significant step toward what it calls ‘medical superintelligence’.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Meta launches AI superintelligence lab to compete with rivals

Meta has launched a new division called Meta Superintelligence Labs to accelerate its AI ambitions and close the gap with rivals such as OpenAI and Google.

The lab will be led by Alexandr Wang, former CEO of Scale AI, following Meta’s $14.3 billion investment in the data-labeling company. Former GitHub CEO Nat Friedman and SSI co-founder Daniel Gross will also hold key roles in the initiative.

Mark Zuckerberg announced the new effort in an internal memo, stating that Meta is now focused on developing superintelligent AI systems capable of matching or even outperforming humans. He described this as the beginning of a new era and reaffirmed Meta’s commitment to leading the field.

The lab’s mission is to push AI to a point where it can solve complex tasks more effectively than current models.

To meet these goals, Meta has been aggressively recruiting AI researchers from top competitors. Reports suggest that OpenAI employees have been offered signing bonuses as high as $100 million to join Meta.

New hires include talent from Anthropic and Google, although Meta has reportedly avoided deeper recruitment from Anthropic due to concerns over culture fit.

Meta’s move comes in response to the lukewarm reception of its Llama 4 model and mounting pressure from more advanced AI products released by competitors.

The company hopes that by combining high-level leadership, fresh talent and massive investment, its new lab can deliver breakthrough results and reposition Meta as a serious contender in the race for AGI.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Grok gets a boost: xAI secures $10 billion for AI expansion

xAI, founded by Elon Musk, has secured $10 billion in fresh funding to strengthen its position in the competitive AI landscape. The investment consists of $5 billion in secured loans arranged by Morgan Stanley and a further $5 billion in strategic equity investment.

Morgan Stanley announced the deal on Monday, noting that global investors oversubscribed the debt offering. The firm described the transaction as a strong show of confidence in xAI’s long-term mission to accelerate scientific discovery and deepen humanity’s understanding of the universe.

The newly raised capital will support xAI’s development of a large-scale data centre and continued improvements to its flagship Grok platform. Grok is a conversational AI assistant integrated into Musk’s social media platform, X (formerly Twitter), and is designed to rival systems from OpenAI, Google, and Anthropic.

Morgan Stanley highlighted that the funding structure—blending debt and equity—lowers xAI’s cost of capital and provides access to a broader pool of long-term funding. The firm also said the financing gives xAI greater flexibility as it scales its infrastructure and operations.

xAI has grown rapidly since its launch, raising $6 billion in a Series B round last year, which valued the company at approximately $24 billion. The additional $10 billion signals growing ambition as it prepares to compete with the most prominent players in AI development.

The Grok platform differentiates itself through its real-time access to social media content and a more informal tone, positioning it as a potentially unique alternative in the generative AI space. With expanded funding, xAI is expected to further invest in data training, hardware, and software refinement.

The funding boost comes as rivals also raise capital to stay ahead in the AI race. In March, OpenAI announced a record-setting $40 billion round led by SoftBank, with Microsoft, Altimeter, and Thrive also participating. The round valued OpenAI at $300 billion post-money.

OpenAI said the funds would allow it to enhance research, expand computing power, and improve products like ChatGPT, now used by over 500 million people weekly. Other firms, including Google and Meta, are also increasing investments in pursuit of artificial general intelligence (AGI).

As the battle to dominate AI intensifies, xAI’s latest funding round may mark a turning point, with the firm now better equipped to compete for market share, talent, and technological breakthroughs in an increasingly crowded field.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!