Capacity development

US scraps Biden AI chip export rule

The US Department of Commerce has scrapped the Biden administration’s Artificial Intelligence Diffusion Rule just days before it was due to come into force.

Introduced in January, the rule would have restricted the export of US-made AI chips to many countries for the first time, while reinforcing existing controls.

Rather than enforcing broad restrictions, the Department now intends to pursue direct negotiations with individual countries.

The original rule divided the world into three tiers, with countries like Japan and South Korea spared restrictions, middle-tier countries such as Mexico and Portugal facing new limits, and nations like China and Russia subject to tighter controls.

According to Bloomberg, a replacement rule is expected at a later date.

Instead of issuing immediate new regulations, officials released industry guidance warning companies against using Huawei’s Ascend AI chips and highlighted the risks of allowing US chips to train AI in China.

Secretary Jeffrey Kessler criticised the Biden-era policy, promising a ‘bold, inclusive’ AI strategy that works with allies while limiting access for adversaries.

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Autonomous AI agents are the next phase of enterprise automation

Organisations across sectors are turning to agentic automation—an emerging class of AI systems designed to think, plan, and act autonomously to solve complex, multi-step problems.

Unlike traditional automation tools, which follow rigid rules, agentic systems use large language models (LLMs) and robotic process automation (RPA) to navigate ambiguity and make contextual decisions.

‘Agentic automation is the next generation of automation,’ said UiPath VP Robbie Mackness. ‘It’s about creating systems that can observe, reason, and act with minimal human input.’

Early adopters include the financial sector, where over 25% of firms plan to deploy agentic solutions this year, according to Bank Automation News.

Companies like BlackLine are using it to automate high-judgement accounting tasks, while public sector agencies like the US Navy are trialling the technology for logistics and admin workloads. The recruitment industry is also exploring AI agents for candidate screening and initial assessments.

Experts caution that success depends on identifying the right use cases and implementing proper governance. Still, the potential is clear: agentic automation could unlock entirely new capabilities and redefine how complex work gets done.

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Scale AI expands into Saudi Arabia and UAE

Scale AI, a San Francisco-based startup backed by Amazon, plans to open a new office in Riyadh by the end of the year as part of its broader Middle East expansion.

The company also intends to establish a presence in the United Arab Emirates, although it has yet to confirm the timeline for that move.

Trevor Thompson, the company’s global managing director, said the Gulf is among the fastest-growing regions for AI adoption outside of the US and China.

Gulf states like Saudi Arabia have been investing heavily in tech startups, data centres and computing infrastructure, urging companies to set up local operations and create regional jobs. Salesforce, for instance, has already begun hiring for a $500 million investment in the kingdom.

Founded in 2016, Scale AI provides data-labelling services essential for training AI products, relying on a vast network of contract workers. Its clients include OpenAI and Microsoft.

The company hit a $13.8 billion valuation last year after a $1 billion funding round backed by Amazon, Meta and others.

In 2024, it generated about $870 million in revenue and is reportedly in talks for a deal that could nearly double its value.

Scale AI is also strengthening its regional ties. In February, it signed a five-year agreement with Qatar to enhance public services, followed by a partnership with Abu Dhabi-based Inception in March.

The news coincides with former President Donald Trump’s upcoming visit to Saudi Arabia, where his team is considering lifting export controls on advanced AI chips, potentially boosting the Gulf’s access to cutting-edge technology.

Notably, Scale AI’s former managing director, Michael Kratsios, now advises Trump on tech matters.

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Microsoft and OpenAI rework billion dollar deal

OpenAI and Microsoft are renegotiating the terms of their multibillion-dollar partnership in a move designed to allow the ChatGPT maker to pursue a future public listing, while ensuring Microsoft retains access to its most advanced AI technology.

According to the Financial Times, the talks are centred around adjusting Microsoft’s equity stake in OpenAI’s for-profit arm.

The software giant has invested over US$13 billion in OpenAI and is reportedly prepared to reduce its stake in exchange for extended access to AI developments beyond the current 2030 agreement.

The revisions also include changes to a broader agreement first established in 2019 when Microsoft committed US$1 billion to the partnership.

The restructuring reflects OpenAI’s shift in strategy as it prepares for potential independence from its largest investor. Recent reports suggest the company plans to share a smaller portion of its future revenue with Microsoft, instead of maintaining current terms.

Microsoft has declined to comment on the ongoing negotiations, and OpenAI has yet to respond.

The talks follow Microsoft’s separate US$500 billion joint venture with Oracle and SoftBank to build AI data centres in the US, further signalling the strategic value of securing long-term access to cutting-edge models.

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Microsoft expands cloud push across Europe

Microsoft has unveiled a new set of commitments aimed at strengthening its digital presence across Europe, pledging to expand cloud and AI infrastructure while supporting the region’s economic competitiveness.

Announced by Microsoft President Brad Smith in Brussels, the ‘European Digital Commitments’ include a promise to increase European data centre capacity by 40% within two years, bringing the total to over 200 across 16 countries.

Smith explained that Microsoft’s goal is to provide technology that helps individuals and organisations succeed, rather than simply expanding its reach. He highlighted AI as essential to modern economies, describing it as a driving force behind what he called the ‘AI economy.’

Alongside job creation, Microsoft hopes its presence will spark wider economic benefits for customers and partners throughout the continent.

To ease concerns around data security, particularly in light of US–EU geopolitical tensions, Microsoft has added clauses in agreements with European institutions allowing it to legally resist any external order to halt operations in Europe.

If such efforts failed, Microsoft has arranged for European partners to access its code stored securely in Switzerland, instead of allowing disruptions to affect vital digital services.

Although Microsoft’s investments stand to benefit Europe, they also underscore the company’s deep dependence on the region, with over a quarter of its business based there.

Smith insisted that Microsoft’s global success would not have been possible without its European footprint, and called for continued cooperation across the Atlantic—even in the face of potential tariff disputes or political strains.

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Amazon expands warehouse automation with Vulcan robots

Amazon has officially unveiled its Vulcan robots, an advanced robotics system designed to improve safety and efficiency in its fulfilment centres. Already in operation at facilities in Spokane, USA, and Hamburg, Germany, the new technology was showcased at an event in Dortmund this week.

The robots combine AI-powered software with a spatula-like gripping mechanism and sensors to pick up and stow items with a high degree of precision. Amazon says the robots are capable of handling around 75 percent of its product inventory and can operate at speeds comparable to human workers.

Their design allows them to safely access items stored at the highest and lowest levels of the eight-foot storage pods used throughout Amazon’s centres.

A wider rollout is expected in the UK over the next three years, with several distribution centres in Yorkshire set to adopt the technology.

Amazon highlights the Vulcan system as a key advancement in warehouse automation, aimed at improving worker safety and streamlining complex logistics operations.

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Wiley and Perplexity partner to deliver smarter study tools

Perplexity has announced a major partnership with global academic publisher Wiley to integrate its answer engine with Wiley’s extensive library of scientific, technical, and medical learning materials.

The collaboration is designed to streamline access to trusted curriculum content, delivering a more engaging and efficient learning experience for students and educators alike.

Through an institution’s Enterprise Pro subscription, students can now access assigned Wiley materials directly within Perplexity.

This removes the need to switch between platforms, enabling students to ask questions about textbook content, receive tailored explanations, and explore real-time examples from across the web—all in one place.

The integration supports Gen Z learning preferences by offering features such as custom study guides, level-appropriate explanations, and context that links core concepts to real-world applications.

Educators will benefit from the ability to create lesson plans, tailor curriculum to current events, and generate customised learning materials with minimal effort. Institutions gain a competitive edge in education technology, while improving resource efficiency and academic outcomes.

The partnership also promotes critical AI literacy—a growing priority in classrooms. By offering students a structured environment in which to interact with AI tools and academic content, the integration supports responsible use of AI.

It emphasises information quality, proper attribution, and encourages students to develop essential critical thinking skills. Administrators interested in integrating Perplexity with Wiley can contact their Wiley representative to authorise the connection.

Once enabled, students gain seamless access to academic materials directly within the Perplexity platform.

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Apple prepares low-power chip for smart eyewear

Apple is developing custom chips to power future smart glasses, AI servers, and new Mac models, according to a report by Bloomberg News.

The chip for the glasses is being designed with a focus on energy efficiency and advanced camera handling, and production could begin as early as late 2026 or 2027.

Built on technology similar to that of the Apple Watch instead of the iPhone, the chip is expected to consume significantly less power.

It will be manufactured by Taiwan’s TSMC and tailored to manage multiple cameras efficiently, potentially positioning Apple as a rival to Meta’s Ray-Ban smart glasses.

At the same time, Apple is working on new Mac processors—possibly branded as the M6 and M7—as well as AI server chips designed to support the Apple Intelligence platform. This system enables features like notification summaries, email rewriting, and access to OpenAI’s ChatGPT.

These projects come as Apple expands its silicon strategy. Earlier in 2025, the company unveiled its first custom modem for iPhones, and it plans to source over 19 billion chips from the US this year instead of depending on China, while also boosting production in India.

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OpenAI launches data residency in India for ChatGPT enterprise

OpenAI has announced that enterprise and educational customers in India using ChatGPT can now store their data locally instead of relying on servers abroad.

The move, aimed at complying with India’s upcoming data localisation rules under the Digital Personal Data Protection Act, allows conversations, uploads, and prompts to remain within the country. Similar options are now available in Japan, Singapore, and South Korea.

Data stored under this new residency option will be encrypted and kept secure, according to the company. OpenAI clarified it will not use this data for training its models unless customers choose to share it.

The change may also influence a copyright infringement case against OpenAI in India, where the jurisdiction was previously questioned due to foreign server locations.

Alongside this update, OpenAI has unveiled a broader international initiative, called OpenAI for Countries, as part of the US-led $500 billion Stargate project.

The plan involves building AI infrastructure in partner countries instead of centralising development, allowing nations to create localised versions of ChatGPT tailored to their languages and services.

OpenAI says the goal is to help democracies develop AI on their own terms instead of adopting centralised, authoritarian systems.

The company and the US government will co-invest in local data centres and AI models to strengthen economic growth and digital sovereignty across the globe.

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AWS expands in Latin America with first Chile cloud region

Amazon Web Services (AWS) will invest $4 billion to build its first cloud region in Chile by late 2026, marking a significant expansion of its Latin American presence.

The new region will feature three availability zones and become AWS’s third region in the region after Brazil and Mexico, and its 37th worldwide.

The company confirmed that all necessary permits for construction and operation have been secured. AWS expects the Chilean region to provide substantial computing power for generative AI, data analytics and enterprise applications.

The decision reflects the growing demand for low-latency cloud services as Chile’s cloud market is projected to expand more than 30 percent in 2024 and reach $1.9 billion by 2025. IDC forecasts continued growth at about 20 percent annually through 2028.

Local organisations, including LATAM Airlines, AgroSuper and Andrés Bello University, already rely on AWS for critical workloads. Partners such as Deloitte, Accenture and NTT will help support customer onboarding and manage systems.

AWS’s expansion follows its entry into Chile in 2019 with a content delivery edge location, followed by the addition of Outposts, Direct Connect, and a Local Zone over the past few years.

Environmental considerations remain central to the project. AWS will limit water cooling to only 4 percent of the year — equivalent to the annual consumption of two average Chilean households — and primarily use air and evaporative cooling.

The company reached 100 percent renewable-energy usage in 2023 and targets net-zero carbon emissions by 2040 as part of its Climate Pledge.

Competition is heating up in Chile’s cloud market. Microsoft Azure plans to open its local region this year, while Google faced regulatory setbacks after a court partially revoked its permit for a $200 million data centre project.

AWS hopes its early investment will help it capture a larger share of the Latin American cloud services sector, reinforcing its global network of 36 regions and 114 availability zones.

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