Qwen relaunch aims to unify Alibaba’s mobile AI ecosystem

Alibaba is preparing a major overhaul of its mobile AI apps, renaming Tongyi as Qwen and adding early agentic features. The update aims to make Qwen resemble leading chatbots while linking AI tools to Taobao and other services. Alibaba also plans a global version once the new design stabilises.

Over one hundred developers are working on the project as part of wider AI investments. Alibaba hopes Qwen can anchor its consumer AI strategy and regain momentum in a crowded market. It still trails Doubao and Yuanbao in user popularity and needs a clearer consumer path.

Monetisation remains difficult in China because consumers rarely pay for digital services. Alibaba thinks shopping features will boost adoption by linking AI directly to e-commerce use. Qwen will stay free for now, allowing the company to scale its user base before adding paid options.

Alibaba wants to streamline its overlapping apps by directing users to one unified Qwen interface. Consolidation is meant to strengthen brand visibility and remove confusion around different versions. A single app could help Alibaba stand out as Chinese firms race to deploy agentic AI.

Chinese and US companies continue to expand spending on frontier AI models, cloud infrastructure, and agent tools. Alibaba reported strong cloud growth and rising demand for AI products in its latest quarter. The Qwen relaunch is its largest attempt to turn technical progress into a viable consumer business.

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Google launches Private AI Compute for secure cloud-AI

In a move that underscores the evolving balance between capability and privacy in AI, Google today introduced Private AI Compute. This new cloud-based processing platform supports its most advanced models, such as those in the Gemini family, while maintaining what it describes as on-device-level data security.

The blog post explains that many emerging AI tasks now exceed the capabilities of on-device hardware alone. To solve this, Google built Private AI Compute to offload heavy computation to its cloud, powered by custom Tensor Processing Units (TPUs) and wrapped in a fortified enclave environment called Titanium Intelligence Enclaves (TIE).

The system uses remote attestation, encryption and IP-blinding relays to ensure user data remains private and inaccessible; ot even Google’s supposed to gain access.

Google identifies initial use-cases in its Pixel devices: features such as Magic Cue and Recorder will benefit from the extra compute, enabling more timely suggestions, multilingual summarisation and advanced context-aware assistance.

At the same time, the company says this platform ‘opens up a new set of possibilities for helpful AI experiences’ that go beyond what on-device AI alone can fully achieve.

This announcement is significant from both a digital policy and platform economy perspective. It illustrates how major technology firms are reconciling user privacy demands with the computational intensity of next-generation AI.

For organisations and governments focused on AI governance and digital diplomacy, the move raises questions about data sovereignty, transparency of remote enclaves and the true nature of ‘secure ‘cloud processing.

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Microsoft brings smarter search to Copilot

Microsoft is expanding Copilot with more precise citations that link directly to publisher sources. Users can also open aggregated references for each answer to review context. The emphasis sits on trust, control, and transparent sourcing throughout the experience.

A new dedicated search mode within Copilot delivers more detailed results when queries require specific information.

Summaries appear alongside links, enabling users to verify evidence and make informed decisions quickly. Industry coverage highlights the stronger focus on verifiable sources and publisher visibility.

The right pane offers a ‘Show all’ list of sources used in responses. Source-based citation pills replace opaque markers to aid credibility checks and exploration. Design choices aim to empower people to stay in control while navigating complex topics.

Updates are live across copilot.com, mobile apps, and Copilot in Edge, with more refinements expected. Microsoft positions the changes within a human-centred strategy where AI supports curiosity safely. Broader Copilot enhancements across Windows and Edge continue in parallel roadmaps.

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Private AI Compute by Google blends cloud power with on-device privacy

Google introduced Private AI Compute, a cloud platform that combines the power of Gemini with on-device privacy. It delivers faster AI while ensuring that personal data remains private and inaccessible, even to Google. The system builds on Google’s privacy-enhancing innovations across AI experiences.

As AI becomes more anticipatory, Private AI Compute enables advanced reasoning that exceeds the limits of local devices. It runs on Google’s custom TPUs and Titanium Intelligence Enclaves, securely powering Gemini models in the cloud. The design keeps all user data isolated and encrypted.

Encrypted attestation links a user’s device to sealed processing environments, allowing only the user to access the data. Features like Magic Cue and Recorder on Pixel now perform smarter, multilingual actions privately. Google says this extends on-device protection principles into secure cloud operations.

The platform’s multi-layered safeguards follow Google’s Secure AI Framework and Privacy Principles. Private AI Compute enables enterprises and consumers to utilise Gemini models without exposing sensitive inputs. It reinforces Google’s vision for privacy-centric infrastructure in cloud-enabled AI.

By merging local and cloud intelligence, Google says Private AI Compute opens new paths for private, personalised AI. It will guide the next wave of Gemini capabilities while maintaining transparency and safety. The company positions it as a cornerstone of responsible AI innovation.

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AI-powered Google Photos features land on iOS, search expands to 100+ countries

Google Photos is introducing prompt-based edits, an ‘Ask’ button, and style templates across iOS and Android. In the US, iPhone users can describe edits by voice or text, with a redesigned editor for faster controls. The rollout builds on the August Pixel 10’s debut of prompt editing.

Personalised edits now recognise people from face groups, so you can issue multi-person requests, such as removing sunglasses or opening eyes. Find it under ‘Help me edit’, where changes apply to each named person. It’s designed for faster, more granular everyday fixes.

A new Ask button serves as a hub for AI requests, from questions about a photo to suggested edits and related moments. The interface surfaces chips that hint at actions users can take. The Ask experience is rolling out in the US on both iOS and Android.

Google is also adding AI templates that turn a single photo into set formats, such as retro portraits or comic-style panels. The company states that its Nano Banana model powers these creative styles and that templates will be available next week under the Create tab on Android in the US and India.

AI search in Google Photos, first launched in the US, is expanding to over 100 countries with support for 17 languages. Markets include Argentina, Australia, Brazil, India, Japan, Mexico, Singapore, and South Africa. Google says this brings natural-language photo search to a far greater number of users.

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€5.5bn Google plan expands German data centres, carbon-free power and skills programmes

Google will invest €5.5bn in Germany from 2026 to 2029, adding a Dietzenbach data centre and expanding its Hanau facility. It will expand offices in Berlin, Frankfurt, and Munich, and launch skilling and a first German heat-recovery project. Estimated impact: ~€1.016bn GDP and ~9,000 jobs annually.

Dietzenbach will strengthen German cloud regions within Google’s 42-region network, used by firms such as Mercedes-Benz. Google Cloud highlights Vertex AI, Gemini, and sovereign options for local compliance. Continued Hanau investment supports low-latency AI workloads.

Google and Engie will extend 24/7 Carbon-Free Energy in Germany through 2030, adding new wind and solar. The portfolio will be optimised with storage and Ørsted’s Borkum Riffgrund 3. Operations are projected to be 85% carbon-free in 2026.

A partnership with Energieversorgung Offenbach will utilise excess data centre heat to feed into Dietzenbach’s district network, serving over 2,000 households. Water work includes wetland protection with NABU in Hesse’s Büttelborn Bruchwiesen. Google reiterates its 24/7 carbon-free goal.

Office expansion includes Munich’s Arnulfpost for up to 2,000 staff, Frankfurt’s Global Tower space, and additional floors in Berlin. Local partnerships will fund digital skills and STEM programmes. Officials and customers welcomed the move for its benefits to infrastructure, sovereignty, and innovation.

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Banks and insurers pivot to AI agents at scale, Capgemini finds

Agentic AI is expected to deliver up to $450 billion in value by 2028, as financial institutions shift frontline processes to AI agents, according to Capgemini’s estimates. Banks start with customer service before expanding into fraud detection, lending, and onboarding, while insurers report similar priorities.

To seize the opportunity, 33% of banks are building agents in-house, while 48% of institutions are creating human supervisor roles. Cloud’s role is expanding beyond infrastructure, with 61% of executives calling cloud-based orchestration critical to scaling.

Adoption is accelerating but uneven. Four in five firms are in ideation or pilots, yet only 10% run agents at scale. Executives expect gains in real-time decision-making, accuracy, and turnaround, especially across onboarding, KYC, loan processing, underwriting, and claims.

Leaders also see growth levers. Most expect agents to support entry into new geographies, enable dynamic pricing, and deliver multilingual services that respect local norms and rules. Budgets reflect this shift, with up to 40% of generative AI spend already earmarked for agents.

Barriers persist. Skills shortages and regulatory complexity top the list of concerns, alongside high implementation costs. A quarter of firms are exploring ‘service-as-a-software’ models, paying for outcomes such as the resolution of fraud cases or the handling of customer queries.

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Winning the AI race means winning developers in China, says Huang of Nvidia

Nvidia CEO Jensen Huang said China is ‘nanoseconds’ behind the US in AI and urged Washington to lead by accelerating innovation and courting developers globally. He argued that excluding China would weaken the reach of US technology and risk splintering the ecosystem into incompatible stacks.

Huang’s remarks came amid ongoing export controls that bar Nvidia’s most advanced processors from the Chinese market. He acknowledged national security concerns but cautioned that strict limits can slow the spread of American tools that underpin AI research, deployment, and scaling.

Hardware remains central, Huang said, citing advanced accelerators and data-centre capacity as the substrate for training frontier models. Yet diffusion matters: widespread adoption of US platforms by global developers amplifies influence, reduces fragmentation, and accelerates innovation.

With sales of top-end chips restricted, Huang warned that Chinese firms will continue to innovate on domestic alternatives, increasing the likelihood of parallel systems. He called for policies that enable US leadership while preserving channels to the developer community in China.

Huang framed the objective as keeping America ahead, maintaining the world’s reliance on an American tech stack, and avoiding strategies that would push away half the world’s AI talent.

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ACCC lawsuit triggers Microsoft’s rethink and apology on Copilot subscription communications

Microsoft apologised after Australia’s regulator said it steered Microsoft 365 users to pricier Copilot plans while downplaying cheaper Classic tiers. The move follows APAC price-rise emails and confusion over Personal and Family increases.

ACCC officials said communications may have denied customers informed choices by omitting equivalent non-AI plans. Microsoft acknowledged it could have been clearer and accepted that Classic alternatives might have saved some subscribers money under the October 2024 changes.

Redmond is offering affected customers refunds for the difference between Copilot and Classic tiers and has begun contacting subscribers in Australia and New Zealand. The company also re-sent its apology email after discovering a broken link to the Classic plans page.

Questions remain over whether similar remediation will extend to Malaysia, Singapore, Taiwan, and Thailand, which also saw price hikes earlier this year. Consumer groups are watching for consistent remedies and plain-English disclosures across all impacted markets.

Regulators have sharpened scrutiny of dark patterns, bundling, and AI-linked upsells as digital subscriptions proliferate. Clear side-by-side plan comparisons and functional disclosures about AI features are likely to become baseline expectations for compliance and customer trust.

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Snap brings Perplexity’s answer engine into Chat for nearly a billion users

Starting in early 2026, Perplexity’s AI will be integrated into Snapchat’s Chat, accessible to nearly 1 billion users. Snapchatters can ask questions and receive concise, cited answers in-app. Snap says the move reinforces its position as a trusted, mobile-first AI platform.

Under the deal, Perplexity will pay Snap $400 million in cash and equity over a one-year period, tied to the global rollout. Revenue contribution is expected to begin in 2026. Snap points to its 943 million MAUs and reaches over 75% of 13–34-year-olds in 25+ countries.

Perplexity frames the move as meeting curiosity where it occurs, within everyday conversations. Evan Spiegel says Snap aims to make AI more personal, social, and fun, woven into friendships and conversations. Both firms pitch the partnership as enhancing discovery and learning on Snapchat.

Perplexity joins, rather than replaces, Snapchat’s existing My AI. Messages sent to Perplexity will inform personalisation on Snapchat, similar to My AI’s current behaviour. Snap claims the approach is privacy-safe and designed to provide credible, real-time answers from verifiable sources.

Snap casts this as a first step toward a broader AI partner platform inside Snapchat. The companies plan creative, trusted ways for leading AI providers to reach Snap’s global community. The integration aims to enable seamless, in-chat exploration while keeping users within Snapchat’s product experience.

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