AI export rules tighten as the US opens global opportunities

President Trump has signed an Executive Order to promote American leadership in AI exports, marking a significant policy shift. The move creates new global opportunities for US businesses but also introduces stricter compliance responsibilities.

The order establishes the American AI Exports Program, overseen by the Department of Commerce, to develop and deploy ‘full-stack’ AI export packages.

These packages cover everything from chips and cloud infrastructure to AI models and cybersecurity safeguards. Industry consortia will be invited to submit proposals, outlining hardware origins, export targets, business models, and federal support requests.

A central element of the initiative is ensuring compliance with US export control regimes. Companies must align with the Export Control Reform Act and the Export Administration Regulations, with special attention to restrictions on advanced computing chips.

New guidance warns against potential violations linked to hardware and highlights red flags for illegal diversion of sensitive technology.

Commerce stresses that participation requires robust export compliance plans and rigorous end user screening.

Legal teams are urged to review policies on AI exports, as regulators focus on preventing misuse of advanced computing systems in military or weapons programmes abroad.

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Microsoft brings Anthropic AI into Office 365 as OpenAI tensions rise

The US tech giant Microsoft is expanding its AI strategy by integrating Anthropic’s Claude models into Office 365, adding them to apps like Word, Excel and Outlook instead of relying solely on OpenAI.

Internal tests reportedly showed Anthropic’s systems outperforming OpenAI in specific reasoning and data-processing tasks, prompting Microsoft to adopt a hybrid approach while maintaining OpenAI as a frontier partner.

The shift reflects growing strain between Microsoft and OpenAI, with disputes over intellectual property and cloud infrastructure as well as OpenAI’s plans for greater independence.

By diversifying suppliers, Microsoft reduces risks, lowers costs and positions itself to stay competitive while OpenAI prepares for a potential public offering and develops its own data centres.

Anthropic, backed by Amazon and Google, has built its reputation on safety-focused AI, appealing to Microsoft’s enterprise customers wary of regulatory pressures.

Analysts believe the move could accelerate innovation, spark a ‘multi-model era’ of AI integration, and pressure OpenAI to enhance its technology faster.

The decision comes amid Microsoft’s push to broaden its AI ecosystem, including its in-house MAI-1 model and partnerships with firms like DeepSeek.

Regulators are closely monitoring these developments, given Microsoft’s dominant role in AI investment and the potential antitrust implications of its expanding influence.

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AI in weather forecasting takes centre stage in Abu Dhabi

Abu Dhabi hosted a Weather Summit that explored how AI could transform forecasting and support operations, such as cloud seeding. Experts emphasised that AI enhances analysis but must complement, rather than replace, human judgement.

Discussions focused on Earth-system forecasting using satellite datasets, IoT devices, and geospatial systems. Quality, interoperability, and equitable access to weather services were highlighted as pressing priorities.

Speakers raised questions about public and private sector incentives’ reliability, transparency, and influence on AI. Collaboration across sectors was crucial to strengthening trust and global cooperation in meteorology.

WMO President Dr Abdulla Al Mandous said forecasting has evolved from traditional observation to supercomputing and AI. He argued that integrating models with AI could deliver more precise local forecasts for agriculture, aviation, and disaster management.

The summit brought together leaders from UN bodies, research institutions, and tech firms, including Google, Microsoft, and NVIDIA. Attendees highlighted the need to bridge data gaps, particularly in developing regions, to confront rising climate challenges.

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Meta to spend $600 billion on US data centres by 2028

Meta has plans to spend at least $600 billion on US data centres and AI infrastructure by 2028. The forecast, reported by The Information, was shared by CEO Mark Zuckerberg during a dinner with President Donald Trump and other technology leaders.

Capital expenditure is set to rise sharply over the next three years. Meta projects spending of $66–72 billion in 2025, nearly 70% higher than 2024, with another significant increase expected in 2026.

The company said the surge in investment will be driven primarily by the need to expand AI computing power.

Zuckerberg confirmed that Meta aims to deploy more than one million GPUs to train its next generation of AI models.

The company is also investing heavily in talent and infrastructure as it builds a dedicated team focused on developing artificial super intelligence, a concept referring to AI systems with capabilities beyond those of humans.

The spending commitment highlights how major US technology companies are racing to secure computing capacity for AI. Meta is pledging ‘hundreds of billions of dollars’ towards expanding its data centre footprint in the years ahead.

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Microsoft signs multi-billion-dollar AI pact with Nebius

Shares in Amsterdam-based Nebius surged more than 50% in US premarket trading after the company announced a $19.4 billion deal with Microsoft. The agreement will provide cloud computing power for AI workloads and is set to run until 2031.

Under the pact’s terms, Nebius will generate $17.4 billion in revenue over the next six years, with Microsoft also retaining the option to purchase additional computing capacity.

Investors responded strongly, with Nebius shares climbing 60% in extended trading on Monday and continuing their rise on Tuesday. Rival AI infrastructure company CoreWeave also benefited, gaining more than 6% premarket.

Nebius, spun out from Russian internet firm Yandex in 2023, specialises in supplying GPUs for training AI models. The deal underscores the high demand for computing power as companies race to develop increasingly advanced AI systems.

Industry leader Nvidia recently reported soaring earnings and forecast that AI infrastructure spending could reach $4 trillion by 2030.

The boom in AI infrastructure comes amid mounting questions over whether valuations are sustainable. OpenAI has reportedly reached a $500 billion valuation, while rival Anthropic recently raised $13 billion at a $183 billion valuation.

Some analysts, including OpenAI chief executive Sam Altman, have warned that the AI sector may already show signs of a bubble.

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AI-tissue collaboration could transform drug trials and precision medicine

Researchers combine human tissue models with explainable AI to analyse patient data and identify treatments that work best for specific patients. First applied to inflammatory bowel disease, the approach could improve clinical trial success rates and accelerate drug discovery.

REPROCELL, IBM, and the STFC Hartree Centre have developed Pharmacology-AI, a platform uniting tissue models with machine learning. Delivered through the Hartree National Centre for Digital Innovation, it reduces costs, enhances trial design, and enables more targeted therapies.

Unlike tools that seek to replace human expertise, the platform acts as a decision-support system. It helps scientists detect patterns in complex datasets while keeping outputs interpretable for clinical trial use. Developers emphasised usability, ensuring non-technical staff can work with the system.

Human fresh tissue models play a central role, preserving biological complexity and simulating drug effects before trials. However, this generates reliable data that can be paired with AI to identify optimal patient profiles and reduce the risk of costly trial failures.

The project’s success suggests broad applications beyond IBD. With explainable AI and high-quality patient data, Pharmacology-AI could improve outcomes across multiple disease areas, making drug development faster, more efficient, and more precise.

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Quantum-proof cryptography emerges as key test for stablecoins

Stablecoins have become central to the digital economy, with billions in daily transactions and stronger regulatory backing under the GENIUS Act. Yet experts warn that advances in quantum computing could undermine their very foundations.

Elliptic curve and RSA cryptography, widely used in stablecoin systems, are expected to be breakable once ‘Q-Day’ arrives. Quantum-equipped attackers could instantly derive private keys from public addresses, exposing entire networks to theft.

The immutability of blockchains makes upgrading cryptographic schemes especially challenging. Dormant wallets and legacy addresses may prove vulnerable, putting billions of dollars at risk if issuers fail to take action promptly.

Researchers highlight lattice-based and hash-based algorithms as viable ‘quantum-safe’ alternatives. Stablecoins built with crypto-agility, enabling seamless upgrades, will better adapt to new standards and avoid disruptive forks.

Regulators are also moving. NIST is finalising post-quantum cryptographic standards, and new rules will likely be established before 2030. Stablecoins that embed resilience today may set the global benchmark for digital trust in the quantum age.

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Trilateral quantum talks highlight innovation and security priorities

The United States, Japan, and South Korea held two Trilateral Quantum Cooperation meetings this week in Seoul and Tokyo. Officials and experts from government and industry gathered to discuss securing quantum ecosystems against cyber, physical, and intellectual property threats.

The US State Department stressed that joint efforts will ensure breakthroughs in quantum computing benefit citizens while safeguarding innovation. Officials said cooperation is essential as quantum technologies could reshape industries, global power balances, and economic prosperity.

The President of South Korea, Lee Jae Myung, described the partnership as entering a ‘golden era’, noting that Seoul, Washington, and Tokyo must work together both to address North Korea and to drive technological progress.

The talks come as Paul Dabbar, the former CEO of Bohr Quantum Technology, begins his role as US Deputy Secretary of Commerce. Dabbar brings experience in deploying emerging quantum network technologies to the new trilateral framework.

North Korea has also signalled interest in quantum computing for economic development. Analysts note that quantum’s lower energy demand compared to supercomputers could appeal to a country plagued by chronic power shortages.

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Conti and LockBit dominate ransomware landscape with record attacks

Ransomware groups have evolved into billion-dollar operations targeting critical infrastructure across multiple countries, employing increasingly sophisticated extortion schemes. Between 2020 and 2022, more than 865 documented attacks were recorded across Australia, Canada, New Zealand, and the UK.

Criminals have escalated from simple encryption to double and triple extortion, threatening to leak stolen data as added leverage. Attack vectors include phishing, botnets, and unpatched flaws. Once inside, attackers use stealthy tools to persist and spread.

BlackSuit, formerly known as Conti, led with 141 attacks, followed by LockBit’s 129, according to data from the Australian Institute of Criminology. Ransomware-as-a-Service groups hit higher volumes by splitting developers from affiliates handling breaches and negotiations.

Industrial targets bore the brunt, with 239 attacks on manufacturing and building products. The consumer goods, real estate, financial services, and technology sectors also featured prominently. Analysts note that industrial firms are often pressured into quick ransom payments to restore production.

Experts warn that today’s ransomware combines military-grade encryption with advanced reconnaissance and backup targeting, raising the stakes for defenders. The scale of activity underscores how resilient these groups remain, adapting rapidly to law enforcement crackdowns and shifting market opportunities.

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Perplexity AI teams up with PayPal for fintech expansion

PayPal has partnered with Perplexity AI to provide PayPal and Venmo users in the US and select international markets with a free 12-month Perplexity Pro subscription and early access to the AI-powered Comet browser.

The $200 subscription allows unlimited queries, file uploads and advanced search features, while Comet offers natural language browsing to simplify complex tasks.

Industry analysts see the initiative as a way for PayPal to strengthen its position in fintech by integrating AI into everyday digital payments.

By linking accounts, users gain access to AI tools and cash back incentives and subscription management features, signalling a push toward what some describe as agentic commerce, where AI assistants guide financial and shopping decisions.

The deal also benefits Perplexity AI, a rising search and browser market challenger. Exposure to millions of PayPal customers could accelerate the adoption of its technology and provide valuable data for refining models.

Analysts suggest the partnership reflects a broader trend of payment platforms evolving into service hubs that combine transactions with AI-driven experiences.

While enthusiasm is high among early users, concerns remain about data privacy and regulatory scrutiny over AI integration in finance.

Market reaction has been positive, with PayPal shares edging upward following the announcement. Observers believe such alliances will shape the next phase of digital commerce, where payments, browsing, and AI capabilities converge.

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