Capacity development Archives | Page 288 of 345

Chinese hedge funds boost AI for competitive edge

China’s hedge fund industry is undergoing a transformative shift, spurred by High-Flyer’s integration of AI in its trading strategies. The multi-billion-dollar fund not only uses AI to enhance its portfolio but also created DeepSeek, a game-changing LLM that has disrupted the dominance of Western AI firms like those in Silicon Valley.

The breakthrough has ignited an AI arms race among Chinese asset managers, including firms like Baiont Quant, Wizard Quant, and Mingshi Investment Management, as they rush to incorporate AI into their investment workflows.

AI-powered trading has gained momentum, with many hedge funds now using AI to process market data and generate trading signals based on investor risk profiles. As competition for “alpha” (outperformance) intensifies, the demand for AI talent is surging.

Companies like Wizard Quant and Mingshi are actively recruiting top AI engineers, and even mutual funds, such as China Merchants Fund, have adopted DeepSeek to boost their efficiency. The open-source model has democratised access to AI, lowering the entry barrier for smaller Chinese funds, which had previously been unable to compete with their Western counterparts due to high costs.

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China claims quantum supremacy with Zuchongzhi 3.0 chip

Chinese researchers have developed the Zuchongzhi 3.0, a quantum processor 1 quadrillion times faster than the world’s best supercomputers. The 105-qubit chip, created at the University of Science and Technology of China, achieved impressive results, completing a quantum task in mere seconds—1 million times faster than Google’s Sycamore chip.

A breakthrough like this marks a major step forward in quantum computing, especially with its enhancements in coherence time and quantum error correction. The processor’s transmon qubits, made from materials like tantalum and niobium, also show significant improvements in gate fidelity, leading to more accurate computations.

Despite these advancements, experts note that classical computing methods could still close the gap, as seen in past quantum supremacy claims.

Zuchongzhi 3.0’s exceptional performance paves the way for more practical quantum computing applications, promising a new era of solving complex real-world challenges. The progress made in quantum gate fidelity and reduced noise sensitivity places China’s quantum processing technology at the forefront of global developments.

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Microsoft backs renewables but acknowledges role of natural gas

Microsoft believes there is still significant room to expand wind and solar power to supply energy-hungry data centres, particularly in the Midwest wind corridor and the sunny southwest.

Bobby Hollis, Microsoft‘s Vice President of Energy, told Reuters at the CERAWeek energy conference that the company remains committed to renewables but acknowledges the challenges of intermittency in wind and solar power.

The rapid expansion of AI and cloud technology is driving record electricity demand, raising concerns about whether renewables can keep up or if gas-fired power will become a fallback.

Microsoft, which has pledged to be carbon-negative by 2030, is investing $80 billion in data centre expansion this year alone. Hollis said the company aims to maximise renewable energy but noted that natural gas may be necessary in some cases.

The central United States region, with strong and consistent winds, offers major potential for wind-powered data centres, while solar energy could expand further in the sun-rich southeast.

Microsoft has already procured more than 30 gigawatts of renewable energy worldwide and continues to push for greater renewable integration before resorting to fossil fuels.

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Intel appoints new CEO to compete in AI chip market

Intel has appointed tech industry veteran Lip-Bu Tan as its chief executive, aiming to revitalise the struggling chipmaker as it falls behind in the AI race.

Tan, set to take over next week, told employees that overcoming Intel’s challenges would not be easy but reaffirmed his commitment to an engineering-first approach.

Following the announcement, Intel’s shares surged by more than 10 per cent in after-market trading.

Once a dominant force in the semiconductor industry, Intel has been outpaced by Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics, which lead in made-to-order chip production.

It also lags behind Nvidia, which has emerged as the top AI chip provider. Tan replaces Pat Gelsinger, who was ousted last year after the board lost confidence in his turnaround efforts, which included cutting 15,000 jobs and delaying chipmaking projects.

Tan, previously head of Cadence Design Systems, pledged to restore Intel’s reputation by taking calculated risks to outmanoeuvre competitors.

He intends to continue the company’s plan to manufacture chips for other firms, directly challenging TSMC. However, analysts remain cautious, questioning whether Intel will split its foundry and chip design businesses or prove its ability to deliver cutting-edge technology.

Intel also faces a growing battle in AI, where Nvidia dominates the data centre chip market. Analysts warn that without a compelling AI strategy, Intel could struggle to regain investor confidence.

Tan, however, remains optimistic, vowing to transform Intel into a world-class chipmaker while ensuring customer satisfaction.

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Major companies back global nuclear energy expansion

Several major companies, including Amazon and Google, have pledged to support the goal of tripling the world’s nuclear energy capacity by 2050.

However, this commitment was made during the CERAWeek conference in Houston, with other signatories such as shale company Occidental and Japanese firm IHI Corp. The World Nuclear Association (WNA) facilitated the pledge and expects more industries, including maritime and aviation, to join in the coming months.

Nuclear energy currently accounts for 9% of the world’s electricity, produced by 439 power reactors. As large tech companies like Amazon and Google pursue nuclear projects, including small modular reactors, the demand for uranium, essential for nuclear technology, has surged.

However, uranium supply remains constrained, mainly coming from Kazakhstan, Canada, and Australia.

With high demand, uranium prices reached a 16-year peak last year, driven by supply disruptions during the COVID-19 lockdowns.

Despite this, global nuclear power generation continues to be concentrated in just a few countries, with 411 reactors in operation as of early 2025, providing a combined 371 gigawatts of capacity.

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Zhipu AI raises 500 million yuan amid rising competition

Chinese startup Zhipu AI has secured 500 million yuan (£54.8 million) in funding from the state-owned Huafa Group, following a separate 1 billion yuan capital raise earlier this month.

Huafa Group, a government-backed conglomerate based in Zhuhai, Guangdong province, announced its investment as Chinese cities compete to support AI firms, a sector seen as critical in Beijing’s technological rivalry with the US.

The funding comes amid increasing competition in China’s AI industry, particularly with Hangzhou-backed DeepSeek, whose large language models have gained attention for their cost-effectiveness and performance against Western alternatives.

Zhipu AI, established in 2019 and recognised as one of China’s ‘AI tigers,’ has received investments from major tech firms including Tencent, Meituan, and Xiaomi. The startup was valued at 20 billion yuan (£2.2 billion) in a funding round last July, according to business registration platform Qichacha.

With the new funding, Zhipu AI aims to enhance technological innovation and further develop its GLM foundation model.

However, the company faces challenges on the international stage, having been added to the US Commerce Department’s export control list in January, restricting its access to American components.

Despite these hurdles, China continues to bolster its AI sector as it seeks to establish a leading position in global artificial intelligence development.

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UK NCSC evaluates best practices for open source software and supply chain risk management

The UK government, through the Department for Science, Innovation and Technology (DSIT), has commissioned research to evaluate best practices for managing risks associated with open-source software (OSS). The study assesses existing guidance on OSS security and resilience, examines its effectiveness across sectors, and provides recommendations for strengthening software supply chain security. That research is part of the government’s wider work to improve the UK’s cyber defences and protect and grow the economy.

The report outlines key recommendations for organisations using OSS, including:

Establishing an internal OSS policy to manage the adoption of OSS components.
Creating a Software Bill of Materials (SBOM) to track OSS components and their dependencies.
Continuously monitoring the software supply chain with software composition analysis (SCA) tools to identify vulnerabilities and licensing issues.
Actively engaging with the OSS community to attract talent, foster innovation, enhance reputation, and ensure a sustainable ecosystem.
Using automation tools to streamline OSS management processes, particularly for smaller organisations, as a cost-effective alternative to manual practices.

The report also highlights the need for further research and policy development in areas such as scale-appropriate best practice guidance, industry-specific OSS management frameworks, standardised metrics for evaluating OSS component maturity, and the impact of community engagement on OSS quality and security.

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OpenSSF launches security baseline to strengthen open source software protection

The Open Source Security Foundation (OpenSSF) has introduced the Open Source Project Security Baseline (OSPS Baseline), a structured framework of security requirements designed to align with international cybersecurity regulations and best practices.

The OSPS Baseline provides a tiered approach that evolves with project maturity, integrating guidance from OpenSSF and industry experts to help open-source projects enhance their security posture. Following the Baseline enables developers to align with global cybersecurity regulations, including the EU Cyber Resilience Act (CRA) and the US National Institute of Standards and Technology (NIST) Secure Software Development Framework (SSDF).

Several projects, including GUAC, OpenVEX, bomctl, and Open Telemetry, participated in the pilot rollout. OpenSSF encourages developers and maintainers to adopt the framework and contribute to its ongoing refinement.

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Celestial AI aims to rival Nvidia with innovative photonic technology

Celestial AI has raised an additional $250 million in venture capital, bringing its total funding to $515 million. The Silicon Valley startup is developing photonics-based technology to improve the speed and efficiency of AI computing.

By using light instead of electrical signals to connect AI chips with memory, the company aims to address the growing demand for higher memory bandwidth, a crucial factor in AI development.

Nvidia currently dominates this space with its NVLink and NVSwitch technologies, prompting a race among startups to develop alternative solutions.

Celestial AI’s ‘photonic fabric’ technology is designed to act as a high-speed bridge between chips, offering improved energy efficiency and lower latency. Backed by AMD’s venture arm, the company is positioning itself as a viable alternative to Nvidia’s proprietary systems.

The latest funding round was led by Fidelity Management & Research and included major investors such as BlackRock, Maverick Capital, and Tiger Global. Other participants included Temasek, Porsche Automobil Holding, and The Engine Ventures.

As AI hardware innovation accelerates, Celestial AI is among a growing group of startups seeking to reshape the industry with new approaches to chip design.

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Reliance Jio and SpaceX partner for Starlink in India

Mukesh Ambani’s Reliance Jio has struck a deal with Elon Musk’s SpaceX to bring Starlink satellite internet services to India, marking a surprising turn after months of rivalry over spectrum allocation.

Under the agreement, Jio will stock Starlink equipment in its retail stores, giving the US company direct access to thousands of outlets across the country.

Move like this one comes after New Delhi sided with Musk’s preferred method of spectrum allocation, despite Ambani’s earlier concerns that Starlink could dominate India’s telecom sector.

The deal follows a similar partnership between Starlink and Bharti Airtel, India’s second-largest telecom provider, both of which depend on government approval for operations to begin. While Airtel’s shares dipped slightly after the Jio announcement, Reliance Industries saw a marginal rise in trading.

Starlink, which has been awaiting licenses since 2022 due to national security concerns, is using the agreement as a low-cost entry into India’s fast-growing satellite internet market, expected to reach $1.9 billion by 2030.

For Musk, the stakes in India go beyond Starlink, as he recently secured a deal to open Tesla’s first showroom in the country.

However, high tariffs on imported electric vehicles remain a challenge. Meanwhile, Jio and SpaceX are also exploring other areas of cooperation, while Jio continues its own satellite broadband plans with Luxembourg-based SES.

Despite past disputes, the partnership signals a shift from competition to collaboration in India’s evolving telecom landscape.

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