Chinese smartphone maker Honor plans to invest $10 billion over the next five years to develop AI for its devices as it prepares for a public listing. CEO James Li revealed at the Mobile World Congress in Barcelona that the company aims to expand beyond smartphones into AI-powered PCs, tablets, and wearables.
Honor’s push into AI comes after completing a shareholder restructuring in December, bringing it closer to an initial public offering, though no timeline has been set. The announcement also aligns with a surge in AI investment in China, driven by the popularity of DeepSeek’s affordable language models.
While Honor’s market share in China slipped from second to fourth place last year, it has gained significant support from the Shenzhen government, including R&D funding and tax breaks. The company is also focusing on expanding internationally as it strengthens its AI capabilities.
For more information on these topics, visit diplomacy.edu.
The Clean Industrial Deal aims to help energy-intensive industries tackle high costs and complex regulations while competing with global rivals.
The plan includes new guarantee schemes, developed in partnership with the European Investment Bank, to lower costs for long-term renewable energy contracts and provide financial support for grid manufacturers.
A proposed EU Critical Raw Material Centre would coordinate the joint purchase of essential metals and minerals needed for the green transition.
Brussels’ initiative is part of a wider effort to streamline bureaucracy, adjust carbon duties, and create a more business-friendly environment for clean industries.
The proposal now awaits approval from the European Parliament and a reinforced majority of EU member states before it can take effect.
For more information on these topics, visit diplomacy.edu.
Chinese technology startups are scrambling for fresh funding to capitalise on the growing excitement around AI, fueled by DeepSeek‘s AI breakthrough and President Xi Jinping’s recent support for private enterprises. Companies such as AI-powered optics startup Rid Vision, brain-computer interface firm AI CARE Medical, and robotics maker Shanghai Qingbao Engine Robotics are among those seeking new onshore investments, according to venture capitalist Andrew Qian.
The surge in investment interest comes after a long period of stagnation in China‘s venture capital sector. New Access Capital, which has invested in several AI startups, noted that many businesses are now attracting both cooperation discussions and investment offers. The DeepSeek case has highlighted the rise of innovative Chinese tech firms, moving away from previous trends of copycat startups, and offering hope for a revitalised venture capital environment.
Despite the growing investor enthusiasm, challenges remain. The strict regulatory scrutiny of initial public offerings (IPOs) in China, coupled with heightened tensions between China and the US, complicate the prospects for exit strategies. Venture capital firms are particularly focused on AI-related businesses, with several companies in sectors like AI image generation and medical tech securing significant funding in recent weeks.
However, the overall fundraising environment remains difficult. Data shows a sharp decline in venture capital investments since 2021, and while investor sentiment has improved post-DeepSeek, concerns over the regulatory landscape and geopolitical tensions persist. Some analysts remain cautious about the near-term outlook for IPOs, especially for offshore listings.
For more information on these topics, visit diplomacy.edu.
In Tokyo, a groundbreaking demonstration of an AI-driven humanoid robot named AIREC showcased its potential in elderly care. The 150-kg (330 lb) robot, designed to assist with tasks such as changing diapers and preventing bedsores, gently moved a man lying on his back to his side. AIREC, a prototype for Japan’s rapidly ageing society, addresses the country’s severe shortage of aged-care workers, exacerbated by a declining birth rate and a shrinking workforce.
With Japan‘s ageing population and the ‘baby boomer’ generation all turning at least 75 by the end of 2024, the need for technological solutions in elderly care has become urgent. The nursing sector is struggling with a lack of workers, and while foreign workers have filled some of the gap, their numbers remain low. Experts, like Takashi Miyamoto, suggest that technology, especially robots like AIREC, is crucial to addressing the future challenges in elderly care.
Currently, robots like AIREC are still being developed and tested, with Sugano, the Waseda University professor leading the project, predicting it could be ready for use in facilities by 2030. While robots are making small strides in elderly care, such as monitoring sleep conditions or assisting with simple tasks, experts believe a collaboration between humans and robots will be the future of care. However, the high cost and technological precision required for humanoid robots to interact safely with humans remains a challenge for widespread adoption.
For more information on these topics, visit diplomacy.edu.
TikTok, the popular video-sharing app owned by ByteDance, has unveiled plans to invest $8.8 billion in building data centres in Thailand over the next five years. The announcement was made by Helena Lersch, TikTok’s Vice President of Public Policy, during an event held in Bangkok on Friday. This investment marks a significant move as the company continues to expand its operations in the region.
The specific details of the investment remain unclear, particularly whether it includes a $3.8 billion agreement that was announced by Thailand’s investment board last month. The government’s investment board had previously detailed a deal aimed at boosting digital infrastructure in the country, but TikTok did not provide further clarification on the connection between the two.
This move highlights TikTok’s growing commitment to the Thai market and its broader strategy of increasing local data storage capabilities. As part of its ongoing efforts to expand its global presence, the company is investing in infrastructure to better serve its user base and meet regulatory requirements in key markets.
For more information on these topics, visit diplomacy.edu.
Taiwan’s Economy Minister Kuo Jyh-huei announced on Thursday that Taiwan Semiconductor Manufacturing Co. (TSMC) would require government approval for any overseas joint ventures, although there are no restrictions on manufacturing advanced chips abroad, except for China. This comes amid reports that TSMC is in talks to acquire a stake in Intel, a move that could stir tensions with the US, where former President Trump has expressed concerns about Taiwan taking away American semiconductor business.
Kuo reassured reporters in Taipei that Taiwan’s semiconductor industry, particularly TSMC, remains vital to the nation’s economy, describing it as the ‘sacred mountain protecting the country.’ He also clarified that while the Taiwanese government would not interfere with TSMC’s business decisions, any large overseas investments or joint ventures must be approved by Taiwan’s economy ministry, with no changes to the rules surrounding advanced chip production outside of China.
TSMC is already investing $65 billion in new factories in Arizona, where it plans to manufacture the most advanced 2-nanometre chips, though this will not occur for a few years. The government is also preparing to engage in discussions with the Trump administration over potential tariffs on Taiwanese imports, aiming to secure the best conditions for local companies in light of the ongoing trade tensions.
For more information on these topics, visit diplomacy.edu.
In his blog, ‘Soft Power at a Crossroads: The Implications of USAID’s Closure,’ Jovan Kurbalija, executive director of Diplo, explores the impact of the Trump administration’s decision to shut down the United States Agency for International Development (USAID). Founded in 1961, USAID was a cornerstone of American soft power, channelling billions in aid to promote global development and humanitarian relief.
Its closure marks a dramatic shift in US foreign policy, raising concerns about the future of American influence abroad. The decision to dismantle USAID came amid accusations of inefficiency and mismanagement, with figures like Elon Musk calling the agency corrupt and bloated.
The administration’s plan to fold USAID’s functions into the State Department aligned with Trump’s ‘America First’ agenda, prioritising national interests over global development efforts. Yet, critics argue that this move undermines decades of diplomatic goodwill and leaves vulnerable populations without critical aid, from landmine clearance in Asia to refugee support in conflict zones.
Kurbalija indicates that the vacuum in the USA ‘soft power’ could be filled by other global actors including China, EU, India, Turkie, and Russia. He also questions the future of soft power itself—will persuasion and public digital diplomacy still matter in a world dominated by hard power and geopolitical competition? As the US steps back from its humanitarian role, the international balance of influence may enter an era of profound change.
For more information on these topics, visit diplomacy.edu.
PsiQuantum has developed a method to manufacture quantum computing chips at scale, solving a key challenge in the industry.
The company confirmed its chipset, Omega, is now ready for mass production through a partnership with GlobalFoundries, which is producing millions of the chips at its factory in Albany, New York.
The startup employs a photonics-based approach, leveraging widely used semiconductor manufacturing techniques. However, this method enables quantum calculations using particles of light while requiring less complex cooling mechanisms than other quantum technologies.
Manufacturing yields have matched those of standard semiconductors, according to company executives.
Findings on mass production were published in the journal Nature, highlighting the readiness of PsiQuantum’s technology. The company expects to complete a facility capable of performing commercial quantum applications by around 2027, aligning with recent industry predictions that quantum computing is now only years away from practical use.
PsiQuantum was valued at $3.15 billion in 2023, positioning it as a leading player in the race for commercially viable quantum computers. Other companies, including Microsoft and Google, have also made significant progress, with Google forecasting commercial applications within five years.
For more information on these topics, visit diplomacy.edu.
China’s embrace of DeepSeek’s AI models has expanded beyond tech companies into everyday household appliances. The startup, based in Hangzhou, has seen a surge of support from Chinese manufacturers, with home appliance giants such as Haier, Hisense, and TCL Electronics announcing plans to incorporate DeepSeek’s AI models into their products. These appliances, already equipped with voice-activated commands, are set to become even smarter with DeepSeek’s models, which promise greater accuracy and functionality.
DeepSeek has made waves in the AI sector this year, with its large language models competing against Western systems but at a fraction of the cost. This has sparked immense pride in China, where the company is seen as a testament to the country’s growing tech capabilities in the face of US efforts to limit its advancements. The company’s founder, Liang Wenfeng, has received significant recognition from Chinese authorities, and DeepSeek is expected to soon release its next-generation R2 reasoning model.
The impact of DeepSeek’s technology is already being felt across industries. From robotics to smart appliances, its AI models offer improved precision in tasks such as obstacle avoidance in robot vacuum cleaners. These devices are expected to better understand complex commands, like ‘Gently wax the wooden floor in the master bedroom but avoid the Legos,’ making everyday life more efficient and intuitive.
For more information on these topics, visit diplomacy.edu.
Baidu is set to launch the next generation of its Ernie AI model, the Ernie 4.5, in mid-March. This upgraded version will feature improved reasoning capabilities and enhanced multimodal functions, allowing it to process and integrate a variety of data formats, including text, images, audio, and video. Baidu also plans to make the Ernie 4.5 series open source from June 30, marking a significant shift in its approach to AI development.
The Chinese tech giant has faced fierce competition in the AI race, particularly from the rising startup DeepSeek, whose models are seen as rivals to leading US systems at a much lower cost. Despite claiming that Ernie’s performance is comparable to OpenAI’s GPT-4, Baidu has struggled to gain widespread adoption of its AI model. The emergence of DeepSeek has further complicated Baidu’s aspirations in the sector, leading the company to reassess its strategy.
Baidu’s CEO, Robin Li, who once advocated for keeping AI models closed-source, has acknowledged the success of DeepSeek and other competitors. He now views the open-source approach as essential for the future of AI development. This shift comes as Baidu continues to compete with other tech giants, including Alibaba, which recently announced its plans to make its video and image-generating AI model, Wan 2.1, open source.
For more information on these topics, visit diplomacy.edu.
