Europe risks falling behind without telecom scale, Telefónica says

Telefónica has called for a shift in Europe’s telecommunications policy, arguing that market fragmentation is undermining investment, digital competitiveness, and the continent’s technological sovereignty, according to a new blog post from the company.

In the post, Telefónica says Europe’s emphasis on maximising retail competition has produced a highly fragmented operator landscape. It cites industry data showing the average European operator serves around five million customers, far fewer than peers in the United States or China.

The company argues that this lack of scale explains Europe’s lower per-capita investment in telecoms infrastructure and is slowing the rollout of technologies such as standalone 5G, fibre networks, and sovereign cloud and AI platforms.

Telefónica points to recent reports by Mario Draghi and Enrico Letta as signs of a policy shift, with EU institutions placing greater weight on investment capacity, resilience, and dynamic efficiency alongside traditional competition objectives.

The blog post concludes that Europe faces a strategic choice between preserving fragmented markets or enabling responsible consolidation. Telefónica says carefully regulated mergers could support sustainability, reduce regional digital divides, and strengthen Europe’s digital infrastructure.

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How data centres affect electricity, prices, water consumption and jobs

Data centres have become critical infrastructure for modern economies, supporting services ranging from digital communications and online commerce to emergency response systems and financial transactions.

As AI expands, demand for cloud computing continues to accelerate, increasing the need for additional data centre capacity worldwide.

Concerns about environmental impact often focus on electricity and water use, yet recent data indicate that data centres are not primary drivers of higher power prices and consume far less water than many traditional industries.

Studies show that rising electricity costs are largely linked to grid upgrades, climate-related damage and fuel prices instead of large-scale computing facilities, while water use by data centres remains a small fraction of overall consumption.

Technological improvements have further reduced resource intensity. Operators have significantly improved water efficiency per unit of computing power, adopting closed-loop liquid cooling and advanced energy management systems.

In many regions, water is required only intermittently, with consumption levels lower than those in sectors such as clothing manufacturing, agriculture and automotive services.

Beyond digital services, data centres deliver tangible economic benefits to local communities. Large-scale investments generate construction activity, long-term technical employment and stable tax revenues, while infrastructure upgrades and skills programmes support regional development.

As cloud computing and AI continue to shape everyday life, data centres are increasingly positioned as both economic and technological anchors.

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BBVA deepens AI partnership with OpenAI

OpenAI and BBVA have agreed on a multi-year strategic collaboration designed to embed artificial intelligence across the global banking group.

An initiative that will expand the use of ChatGPT Enterprise to all 120,000 BBVA employees, marking one of the largest enterprise deployments of generative AI in the financial sector.

The programme focuses on transforming customer interactions, internal workflows and decision making.

BBVA plans to co-develop AI-driven solutions with OpenAI to support bankers, streamline risk analysis and redesign processes such as software development and productivity support, instead of relying on fragmented digital tools.

The rollout follows earlier deployments that demonstrated strong engagement and measurable efficiency gains, with employees saving hours each week on routine tasks.

ChatGPT Enterprise will be implemented with enterprise grade security and privacy safeguards, ensuring compliance within a highly regulated environment.

Beyond internal operations, BBVA is accelerating its shift toward AI native banking by expanding customer facing services powered by OpenAI models.

The collaboration reflects a broader move among major financial institutions to integrate AI at the core of products, operations and personalised banking experiences.

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AI reshapes cybercrime investigations in India

Maharashtra police are expanding the use of an AI-powered investigation platform developed with Microsoft to tackle the rapid growth of cybercrime.

MahaCrimeOS AI, already in use across Nagpur district, will now be deployed to more than 1,100 police stations statewide, significantly accelerating case handling and investigation workflows.

The system acts as an investigation copilot, automating complaint intake, evidence extraction and legal documentation across multiple languages.

Officers can analyse transaction trails, request data from banks and telecom providers and follow standardised investigation pathways, instead of relying on slow manual processes.

Built using Microsoft Foundry and Azure OpenAI Service, MahaCrimeOS AI integrates policing protocols, criminal law references and open-source intelligence.

Investigators report major efficiency gains, handling several cases monthly where only one was previously possible, while maintaining procedural accuracy and accountability.

The initiative highlights how responsible AI deployment can strengthen public institutions.

By reducing administrative burden and improving investigative capacity, the platform allows officers to focus on victim support and crime resolution, marking a broader shift toward AI-assisted governance in India.

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Google supports UK quantum innovation push

UK researchers will soon be able to work with Google’s advanced quantum chip Willow through a partnership with the National Quantum Computing Centre. The initiative aims to help scientists tackle problems that classical computers cannot solve.

The agreement will allow academics to compete for access to the processor and collaborate with experts from both organisations. Google hopes the programme will reveal practical uses for quantum computing in science and industry.

Quantum technology remains experimental, yet progress from Google, IBM, Amazon and UK firms has accelerated rapidly. Breakthroughs could lead to impactful applications within the next decade.

Government investment has supported the UK’s growing quantum sector, which hosts several cutting-edge machines. Officials estimate the industry could add billions to the UK economy as real-world uses emerge.

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Taiwan strengthens its role in global semiconductors

Taiwan will continue to produce the world’s most advanced semiconductors domestically to remain a vital player globally. Deputy Foreign Minister Francois Chih-chung Wu said the island’s expertise cannot be easily replicated abroad.

Taiwan has invested in fabs in the US, Japan and Germany, but warned that moving production overseas is complex. The island plans to foster international partnerships while maintaining core technology in-house to safeguard its supply chains.

China’s military pressure on Taiwan has increased concerns over regional stability and global chip supply. Wu emphasised that preventing conflict is the most effective way to secure the semiconductor industry.

Washington and Europe share strategic interests with Taiwan, including the semiconductor industry and navigation in the Taiwan Strait. Wu expressed confidence that the international community would defend these interests, maintaining Taiwan’s essential role in technology.

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AI-powered grid pilot aims to cut energy costs in Ottawa

Canada has announced new federal funding to pilot AI tools on the electricity grid, backing a project designed to improve reliability, affordability and efficiency as energy demand grows.

The government of Canada will provide $6 million to Hydro Ottawa under the Ottawa Distributed Energy Resource Accelerator programme. The initiative will utilise AI-enhanced predictive analytics to forecast peak demand and help balance electricity supply and demand in near real-time.

The project will turn customer-owned technologies such as smart thermostats, electric vehicle chargers and home batteries into responsive grid resources. By aggregating them, Hydro Ottawa aims to manage local constraints and reduce costly network upgrades, starting in areas like Kanata North that are experiencing rapid growth.

Officials say the programme will give households more control over energy use while strengthening grid resilience. The pilot is also intended to serve as a model that could be scaled across other neighbourhoods and electricity systems.

The funding comes through the Energy Innovation Program, which supports innovative grid demonstrations and AI-driven energy projects. Ottawa says such initiatives are key to modernising Canada’s electricity system and supporting the transition to a low-carbon economy.

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OpenAI outlines safeguards as AI cyber capabilities advance

Cyber capabilities in advanced AI models are improving rapidly, delivering clear benefits for cyberdefence while introducing new dual-use risks that require careful management, according to OpenAI’s latest assessment.

The company points to sharp gains in capture-the-flag performance, with success rates rising from 27 percent in August to 76 percent by November 2025. OpenAI says future models could reach high cyber capability, including assistance with sophisticated intrusion techniques.

To address this, OpenAI says it is prioritising defensive use cases, investing in tools that help security teams audit code, patch vulnerabilities, and respond more effectively to threats. The goal is to give defenders an advantage in an often under-resourced environment.

OpenAI argues that cybersecurity cannot be governed through a single safeguard, as defensive and offensive techniques overlap. Instead, it applies a defence-in-depth approach that combines access controls, monitoring, detection systems, and extensive red teaming to limit misuse.

Alongside these measures, the company plans new initiatives, including trusted access programmes for defenders, agent-based security tools in private testing, and the creation of a Frontier Risk Council. OpenAI says these efforts reflect a long-term commitment to cyber resilience.

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Disney backs OpenAI with $1bn investment and licensing pact

The Walt Disney Company has struck a landmark agreement with OpenAI, becoming the first major content licensing partner on Sora, the AI company’s short-form generative video platform.

Under the three-year deal, Sora will generate short videos using more than 200 animated and creature characters from Disney, Pixar, Marvel, and Star Wars. The licence also covers ChatGPT Images, excluding talent likenesses and voices.

Beyond licensing, Disney will become a major OpenAI customer, using its APIs to develop new products and experiences, including for Disney+, while deploying ChatGPT internally across its workforce. Disney will also make a $1 billion equity investment in OpenAI and receive warrants for additional shares.

Both companies frame the partnership as a test case for responsible AI in creative industries. Executives say the agreement is designed to expand storytelling possibilities while protecting creators’ rights, user safety, and intellectual property across platforms.

Subject to final approvals, Sora-generated Disney content is expected to begin rolling out in early 2026. Curated selections may appear on Disney+, marking a new phase in how established entertainment brands engage with generative AI tools.

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Mercedes-Benz proposes new supervisory board members

Mercedes-Benz will propose Katharina Beumelburg and Rashmi Misra for election to its supervisory board at the annual general meeting on 16 April 2026. The appointments aim to strengthen the board’s focus on sustainability and AI, areas deemed vital for the company’s future.

Beumelburg serves as Chief Sustainability and New Technologies Officer at Heidelberg Materials, overseeing global decarbonisation initiatives. She has over 20 years’ experience in sustainability and industrial transformation, previously holding senior roles at SLB, Siemens, and Siemens Energy.

Misra brings extensive expertise in AI and data platforms. She was Chief AI Officer at Analog Devices, leading the global AI strategy and developing AI-powered sensing technologies, and previously spent more than six years at Microsoft as Vice President of AI, Data and Emerging Technologies.

Dame Polly Courtice and Prof Dr Helene Svahn will step down at the close of the AGM. Chairman Martin Brudermüller said the two new nominees are internationally recognised leaders whose expertise will support Mercedes-Benz’s strategic focus on key future technologies.

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