Capacity development

EU confirms AI Act rollout and releases GPAI Code of Practice

The European Commission has confirmed it will move forward with the EU AI Act exactly as scheduled, instead of granting delays requested by tech giants and businesses.

On 10 July 2025, it published the final General-Purpose AI (GPAI) Code of Practice alongside FAQs to guide organisations aiming to comply with the new law.

Rather than opting for a more flexible timetable, the Commission is standing firm on its regulatory goals. The GPAI Code of Practice, now in its final form, sets out voluntary but strongly recommended steps for companies that want reduced administrative burdens and clearer legal certainty under the AI Act.

The document covers transparency, copyright, and safety standards for advanced AI models, including a model documentation form for providers.

Key dates have already been set. From 2 August 2025, rules covering notifications, governance, and penalties will come into force. By February 2026, official guidelines on classifying high-risk AI systems are expected.

The remaining parts of the legislation will take effect by August 2026, instead of being postponed further.

With the publication of the GPAI Code of Practice, the EU takes another step towards building a unified ethical framework for AI development and deployment across Europe, focusing on transparency, accountability, and respect for fundamental rights.

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Thailand to advance policies to boost space industry and satellite services

Thailand’s Digital Economy Ministry is advancing several key policies to boost the country’s space industry and satellite services. The draft Landing Rights policy, approved by the National Space Policy Committee and pending Cabinet approval, will allow foreign satellite operators to provide services within Thailand while ensuring fair competition with domestic providers.

Alongside this, the committee approved the updated National Space Master Plan, reflecting recommendations from national development councils. These policies form part of the broader National Satellite Policy Framework, which addresses policy, legal and regulatory development, international collaboration, and space infrastructure to support the growing space sector.

The government is focused on using space technology and satellite data to improve areas like disaster management, agriculture, and resource governance. Thailand is also enhancing international cooperation by planning to sign the Artemis Accords, working with China on lunar research, and developing space traffic management policies to strengthen its global role.

To support these goals, Thailand is investing in digital infrastructure to expand space activities, ensure inclusive access, reduce inequality, and boost economic and social security.

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Broadcom challenges Nvidia with Tomahawk Ultra AI networking chip

Broadcom has introduced a new networking chip designed to boost AI data centre performance, positioning itself against Nvidia in the AI hardware race.

Called Tomahawk Ultra, the chip helps link hundreds of processors within close range, ensuring fast communication vital for large AI models.

Instead of using Nvidia’s proprietary NVLink system, Broadcom’s Tomahawk Ultra operates on an accelerated version of Ethernet and connects up to four times more chips within a server rack.

The chip acts as a traffic controller, enabling what the industry refers to as ‘scale-up’ computing — where AI models tap into combined computing power from tightly grouped chips.

According to Broadcom senior vice president Ram Velaga, it took engineers around three years to design the Tomahawk Ultra, which was originally aimed at high-performance computing but adapted for AI workloads as demand surged.

Taiwan Semiconductor Manufacturing Company (TSMC) is producing the processors using its five-nanometre process, and the chips are already shipping to customers.

Rather than requiring major hardware overhauls, the Tomahawk Ultra offers a scalable, Ethernet-based alternative for AI firms looking to build faster, more flexible data centres.

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South Korean firm unveils faster AI data centre architecture with CXL-over-Xlink

South Korean company Panmnesia has introduced a new architecture for AI data centres aimed at improving speed and efficiency.

Instead of using only PCIe or RDMA-based systems, its CXL-over-Xlink approach combines Compute Express Link (CXL) with fast accelerator links such as UALink and NVLink.

The company claims this design can deliver up to 5.3 times faster AI training and reduce inference latency sixfold. By allowing CPUs and GPUs to access large shared memory pools via the CXL fabric, AI workloads are no longer restricted by the fixed memory limits inside each GPU.

It will enable data centres to scale compute and memory independently, adapting to changing workload demands without hardware overprovisioning.

Panmnesia’s system also reduces communication overhead using accelerator-optimised links for CXL traffic, helping maintain high throughput with sub-100ns latency.

The architecture incorporates a hierarchical memory model blending local high-bandwidth memory with pooled CXL memory, alongside scalable CXL 3.1 switches that connect hundreds of devices efficiently without bottlenecks.

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ADB urges urgent reforms to bridge Pakistan’s digital divide

The Asian Development Bank (ADB) has urged Pakistan to act quickly to close its widening digital gap by adopting urgent reforms.

Its recommendations include accelerating delayed spectrum auctions and launching 5G services, significantly expanding fibre-optic infrastructure, especially in underserved areas, and reforming the telecom tax regime to attract private investment and lower consumer costs.

The ADB also calls for gender-responsive and income-sensitive digital inclusion programs, greater investment in digital literacy, and targeted subsidies to help low-income and marginalised communities afford internet-enabled devices and connectivity.

Despite these clear policy paths, Pakistan’s digital progress remains hampered by chronic underinvestment, delayed 5G rollout, and inconsistent policies.

Fixed broadband penetration is just 1.3%, and although mobile internet covers around 80% of the population, real adoption stays low due to high costs and limited digital literacy. Heavy telecom taxes discourage investment and keep services expensive, especially for rural and low-income communities.

Meanwhile, the digital economy contributes only 1.5% to GDP, and deep gender gaps persist: 86% of men own mobile phones compared to just 53% of women, and only 33% of women use the internet.

The ADB warns that without urgent reforms, Pakistan risks widening its digital divide and missing out on economic and social benefits.

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Europe’s quantum ambitions meet US private power and China’s state drive

Quantum computing could fundamentally reshape technology, using quantum bits (qubits) instead of classical bits. Qubits allow complex calculations beyond classical computing, transforming sectors from pharmaceuticals to defence.

Europe is investing billions in quantum technology, emphasising technological sovereignty. Yet, it competes fiercely with the United States, which enjoys substantial private investment, and China, powered by significant state-backed funding.

The UK began quantum initiatives early, launching the National Quantum Programme 2014. It recently pledged £2.5 billion more, supporting start-ups like Orca Computing and Universal Quantum, alongside nations like Canada, Israel, and Japan.

Europe accounted for eight of the nineteen quantum start-ups established globally in 2024, including IQM Quantum Computers and Pasqal. Despite Europe’s scientific strengths, it only captured 5% of global quantum investments, versus 50% for the US.

The European Commission aims to strengthen quantum capabilities by funding six chip factories and a continent-wide Quantum Skills Academy. However, attracting sufficient private investment remains a significant challenge.

The US quantum industry thrives, driven by giants such as IBM, Google, Microsoft, IonQ, Rigetti, and D-Wave Quantum. Recent breakthroughs include Microsoft’s topological qubit and Google’s Willow quantum chip.

D-Wave Quantum has demonstrated real-world quantum advantages, solving complex optimisation problems in minutes. Its technology is now used commercially in logistics, traffic management, and supply chains.

China, meanwhile, leads in state-driven quantum funding, investing $15 billion directly and managing a $138 billion tech venture fund. By contrast, US federal investment totals about $6 billion, underscoring China’s aggressive approach.

Global investment in quantum start-ups reached $1.25 billion in Q1 2025 alone, reflecting a shift towards practical applications. By 2040, the quantum market is projected to reach $173 billion, influencing global economics and geopolitics.

Quantum computing raises geopolitical concerns, prompting democratic nations to coordinate through bodies like the OECD and G7. Interoperability, trust, and secure infrastructure have become essential strategic considerations.

Europe’s quantum ambitions require sustained investment, standard-setting leadership, and robust supply chains. Its long-term technological independence hinges on moving swiftly beyond initial funding towards genuine strategic autonomy.

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Trump unveils AI economy with $100 billion investment push

Donald Trump revealed during the Pittsburgh, Pennsylvania Energy and Innovation Summit that the US will receive over $100 billion in investments to drive its AI economy and energy infrastructure.

The funding is set to create tens of thousands of jobs across the energy and AI sectors, with Pennsylvania positioned as a central hub.

Trump stated the US is already ‘way ahead of China’ in AI development, adding that staying in the lead will require expanding power production.

Instead of relying solely on renewables, Trump highlighted ‘clean, beautiful coal, oil, and nuclear energy as key pillars supporting AI-related growth.

Westinghouse plans to build several nuclear plants nationwide, while Knighthead Capital will invest $15 billion in North America’s largest natural gas power plant in Homer City, Pennsylvania.

Additionally, Google will revitalise two hydropower facilities within the state, contributing to the broader investment wave. Trump mentioned that 20 major technology and energy firms are preparing further commitments in Pennsylvania, reinforcing its role in what he calls the US ‘AI economy’.

The event, hosted by Senator Dave McCormick at Carnegie Mellon University, also featured discussions with Pennsylvania Governor Josh Shapiro.

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San Francisco deploys AI assistant to 30,000 staff

San Francisco has equipped almost 30,000 city employees, from social workers and healthcare staff to administrators, with Microsoft 365 Copilot Chat. The large-scale rollout followed a six-month pilot where workers gained up to five extra hours a week handling routine tasks, particularly in 311 service lines.

Copilot Chat helps streamline bureaucratic functions, such as drafting documents, translating over 40 languages, summarising lengthy reports, and analysing data. The goal is to free staff to focus more on serving residents directly.

A comprehensive five-week training scheme, supported by InnovateUS, ensures that employees learn to use AI securely and responsibly. This includes best practices for data protection, transparent disclosure of AI-generated content, and thorough fact-checking procedures.

City leadership emphasises that all AI tools run on a secure government cloud and adhere to robust guidelines. Employees must reveal when AI is used and remain accountable for its output. The city also plans future AI deployments in traffic management, permitting, and connecting homeless individuals with support services.

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LatAm moves to speed up telecom infrastructure deployment

The LatAm region is actively implementing policies to streamline permitting and environmental licensing processes to facilitate the deployment of telecom infrastructure.

El Salvador recently approved a decree to accelerate permitting for passive infrastructure, including towers and low-income housing, requiring companies to submit applications through a single platform with unified fees.

Peru’s transport and communications ministry is drafting proposals to exempt more low-impact projects from submitting environmental technical reports, update criteria for environmental impact assessments to reduce approval times, simplify ecological regulations, and extend deadlines for adapting existing projects.

In Chile, a newly approved law aims to reduce processing times for telecom permits by 30 to 70 percent, simplify procedures based on associated risks, and introduce ‘positive administrative silence,’ meaning permits are automatically granted if authorities do not respond within a specified period.

The LatAm judicial landscape is evolving to support telecom infrastructure deployment. Mexico’s Supreme Court ruled that only the federal government can tax permits for telecom installations, settling conflicts with municipalities.

In Argentina, courts have invalidated local rules and actions that block infrastructure projects, promoting smoother cross-jurisdictional telecom services.

LatAm governments have also encouraged infrastructure sharing to tackle network deployment challenges, especially in remote areas. Brazil introduced mandatory tower sharing in 2009 but abolished it in 2021.

Tower Group Abrintel opposes this repeal, citing risks to competition, consumer costs, and smaller providers. These legal and policy shifts highlight the region’s push to improve telecom connectivity.

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Nvidia to restart China AI chip sales after US talks

Nvidia has announced plans to resume sales of its H20 AI chip in China, following meetings between CEO Jensen Huang and US President Donald Trump in Beijing.

The move comes after US export controls previously banned sales of the chip on national security grounds, costing Nvidia an estimated $15 billion in lost revenue.

The company confirmed it is filing for licences with the US government to restart deliveries of the H20 graphics processing unit, expecting approval shortly.

Nvidia also revealed a new RTX Pro GPU designed specifically for China, compliant with US export rules, offering a lower-cost alternative instead of risking further restrictions.

Huang, attending a supply chain expo in Beijing, described China as essential to Nvidia’s growth, despite rising competition from local firms like Huawei.

Chinese companies remain highly dependent on Nvidia’s CUDA platform, while US lawmakers have raised concerns about Nvidia engaging with Chinese entities linked to military or intelligence services.

Nvidia’s return to the Chinese market comes as Washington and Beijing show signs of easing trade tensions, including relaxed rare earth export rules from China and restored chip design services from the US.

Analysts note, however, that Chinese firms are likely to keep diversifying suppliers instead of relying solely on US chips for supply chain security.

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