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.
Nomagic, a fast-growing Polish startup, has secured $44 million in funding to develop its robotic arms used in logistics operations like picking, packing, and moving. The company plans to use this investment to expand its technology and business, aiming to sell its robots in North America. Nomagic’s technology, which uses AI and automation software, has already gained significant traction in industries like e-commerce and pharmaceuticals, with a 220% growth in annual recurring revenue last year.
The funding round, led by the European Bank for Reconstruction and Development (EBRD), highlights the growing importance of robotics in rebuilding industrial competitiveness in Europe. Nomagic’s approach focuses on software rather than hardware, enabling its robotic arms to perform across various use cases with ease. This strategy sets it apart from other robotics companies and positions it to capitalise on the increasing demand for automation.
Nomagic’s competitors, such as Covariant, are also seeing success in the field, with Amazon hiring Covariant’s founders and licensing its technology. Industry leaders like Nvidia and SoftBank are also investing in robotic technology, underscoring the potential of this growing market. With government backing and increasing private investment, robotics is playing a key role in modernising logistics and manufacturing industries.
For more information on these topics, visit diplomacy.edu.
Estonia has launched a new initiative aimed at preparing students and teachers for the age of AI. The ‘AI Leap’ programme will provide access to popular AI chatbots, including an educational version of ChatGPT, to help build digital skills. Starting in September 2025, the programme will involve 20,000 high school students and 3,000 teachers, with plans to expand to vocational schools and an additional 38,000 students and 3,000 teachers in 2026.
Education Minister Kristina Kallas emphasised that Estonia’s economic competitiveness depends on how well the country adapts to AI, ensuring young people are equipped for the future. As part of the initiative, Estonia will also invest in teacher training to support the integration of AI in classrooms.
The programme is a public-private partnership, with negotiations underway with major AI companies, including OpenAI and Anthropic. OpenAI has expressed its pride in collaborating with Estonia to bring ChatGPT Edu to the education system, aiming to better prepare students for the workforce. Estonia’s use of AI in education is seen as a model that other countries may follow as the EU pushes to increase digital skills across Europe by 2030.
For more information on these topics, visit diplomacy.edu.
Nvidia has forecast strong growth for the first quarter, reinforcing confidence in the booming demand for AI chips. Orders for the company’s new Blackwell semiconductors were described as ‘amazing’, with CEO Jensen Huang stating that AI is advancing rapidly.
Investors had raised concerns last month after Chinese startup DeepSeek claimed to have developed cost-efficient AI models, but Nvidia’s results eased doubts.
Shares initially rose before fluctuating in extended trading, continuing a trend that has seen Nvidia’s stock surge over 400% in two years. The company generated $11 billion in revenue from Blackwell-related products in the fourth quarter, accounting for around half of its total data centre revenue.
Analysts had expressed scepticism about the transition to Blackwell and competition from DeepSeek, but the latest figures reassured investors.
Margins remain under pressure, with Nvidia forecasting a slight drop to 71% in the first quarter, below Wall Street estimates. Chief Financial Officer Colette Kress expects a recovery later in the year as production scales up and costs decline.
Despite some concerns about oversupply in AI infrastructure, Chinese firms have reportedly increased orders for Nvidia’s H20 AI chip, further supporting demand.
Nvidia’s fourth-quarter revenue rose 78% to $39.3 billion, surpassing expectations. Data centre sales surged 93% to $35.6 billion, continuing strong growth from the previous quarter.
Investors remain focused on Nvidia’s ability to maintain momentum in a competitive AI landscape, particularly as tech giants like Microsoft and Meta commit substantial investments to AI expansion.
For more information on these topics, visit diplomacy.edu.
China accused Taiwan on Wednesday of attempting to hand over its semiconductor industry to the United States, claiming that the island’s government was using the industry to gain political support from Washington. The accusation comes amid reports that Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, may be negotiating a stake in Intel. However, neither TSMC nor Intel has confirmed the talks and Taiwan’s government says it has not received such investment proposals from TSMC.
China’s Taiwan Affairs Office spokesperson, Zhu Fenglian, suggested without providing evidence that Taiwan’s ruling Democratic Progressive Party (DPP) was using TSMC to seek foreign support for independence, accusing the island of ‘selling out’ its companies to the US. Taiwan, however, rejected these claims, with Taiwan’s Mainland Affairs Council affirming the importance of TSMC to the island’s economy and stressing its commitment to maintaining a leading role in semiconductor technology.
The US has been critical of Taiwan’s semiconductor industry, with former President Donald Trump calling for more manufacturing to return to the United States. Despite China’s claims, Taiwan maintains that it is responsible for its foreign investment decisions. The island continues to rely on the US for military support, though the US does not formally recognise Taiwan’s government.
TSMC, which supplies major companies like Apple and Nvidia, did not comment on the reports. Taiwan’s government, however, vowed to support the company amid rising tensions surrounding its semiconductor industry.
For more information on these topics, visit diplomacy.edu.
Meta Platforms is reportedly in talks to build a new data centre campus for its AI projects, potentially costing over $200 billion, according to sources familiar with the matter. The company is considering locations in states like Louisiana, Wyoming, and Texas, with senior executives visiting potential sites this month.
This comes as the AI sector sees a surge in investment, especially following the launch of Microsoft-backed OpenAI’s ChatGPT in 2022. Companies are eager to incorporate AI into their products, leading to significant spending on AI infrastructure.
Despite the report, a Meta spokesperson denied the claims, stating that its data centre plans and capital expenditures have already been disclosed and calling the rest ‘pure speculation’. Meta’s CEO, Mark Zuckerberg, had previously mentioned that the company plans to invest up to $65 billion this year to expand its AI infrastructure.
In comparison, Microsoft has pledged around $80 billion in data centre investments for fiscal 2025, while Amazon has indicated its 2025 spending could exceed $75 billion.
For more information on these topics, visit diplomacy.edu.
Apple is set to begin selling its iPhone 16 in Indonesia following a new agreement with the government, which includes the establishment of a manufacturing plant and a research and development centre. The country’s industry minister, Agus Gumiwang Kartasasmita, confirmed on Wednesday that Apple would soon receive the required local content certificate to allow sales of the device. However, he did not specify when the certificate would be issued.
Indonesia had previously banned the iPhone 16 due to Apple’s failure to meet the local content requirement, which mandates that a certain percentage of parts must be sourced domestically or through local partnerships. Although Apple has no manufacturing facilities in Indonesia, it has been operating developer academies in the country since 2018. Indonesia, with its population of 280 million, is keen to attract more tech-related investment.
Analysts have warned that the local content ban could harm investor confidence and fuel concerns about protectionism, but the new agreements between Apple and the Indonesian government may help address these issues.
For more information on these topics, visit diplomacy.edu.
