Cloud computing

Microsoft brings Grok AI to Azure

Microsoft has become one of the first major cloud providers to offer managed access to Grok, the controversial AI model from Elon Musk’s xAI startup.

Now available through the Azure AI Foundry platform, both Grok 3 and Grok 3 mini will be billed by Microsoft and include the same service-level agreements as other Azure-hosted models.

Grok gained attention for its unfiltered and provocative tone, marketed by Musk as a more candid alternative to mainstream AI.

Unlike ChatGPT, it has been known to use vulgar language and provide responses on sensitive topics that other models typically avoid.

However, the AI has stirred criticism, particularly over troubling behaviour such as undressing women in photos and referencing conspiracy theories. Incidents of censorship and offensive content have raised concerns about its deployment on Musk’s platform X.

Instead of replicating that experience, Microsoft is offering a more controlled version of Grok within Azure. These versions include stricter content controls, enhanced data integration, and improved governance tools, distinguishing them from the models directly available through xAI.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

OpenAI launches advanced coding assistant Codex

OpenAI has launched Codex, a new AI coding agent designed to streamline software development by automating routine tasks and improving code reliability.

Built on a version of its o3 model known as codex-1, the agent uses reinforcement learning to generate high-quality code and test it before output.

Codex operates in a secure, cloud-based sandbox that mirrors a user’s environment and integrates with GitHub for real-time access to repositories.

It logs every step, provides test results, and supports customisation through AGENTS.md files, allowing developers to guide the AI.

Currently available to ChatGPT Pro, Enterprise, and Team subscribers, Codex is being piloted by major firms like Cisco, Superhuman, and Kodiak.

OpenAI plans wider access and future upgrades for more complex, asynchronous collaboration, though limitations like lack of image input support remain.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

China launches first AI satellites in orbital supercomputer network

China has launched the first 12 satellites in a planned network of 2,800 that will function as an orbiting supercomputer, according to Space News.

Developed by ADA Space in partnership with Zhijiang Laboratory and Neijang High-Tech Zone, the satellites can process their own data instead of relying on Earth-based stations, thanks to onboard AI models.

Each satellite runs an 8-billion parameter AI model capable of 744 tera operations per second, with the group already achieving 5 peta operations per second in total. The long-term goal is a constellation that can reach 1,000 POPS.

The network uses high-speed laser links to communicate and shares 30 terabytes of data between satellites. The current batch also carries scientific tools, such as an X-ray detector for studying gamma-ray bursts, and can generate 3D digital twin data for uses like disaster response or virtual tourism.

The space-based computing approach is designed to overcome Earth-based limitations like bandwidth and ground station availability, which means less than 10% of satellite data typically reaches the surface.

Experts say space supercomputers could reduce energy use by relying on solar power and dissipating heat into space. The EU and the US may follow China’s lead, as interest in orbital data centres grows.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

CoreWeave shares rebound after $4B OpenAI partnership announcement

Shares of AI cloud infrastructure company CoreWeave recovered on Thursday, gaining around 3% after the firm announced an expanded partnership with OpenAI worth up to $4 billion.

The deal helped ease investor concerns following the company’s earlier dip in trading.

CoreWeave stock had fallen as much as 9.1% earlier in the day after the company projected annual capital expenditures for 2025 would be roughly four times higher than expected revenue.

The forecast was included in CoreWeave’s first earnings report since going public in March.

The expanded agreement with OpenAI appears to have lifted investor sentiment, offsetting concerns about the company’s aggressive spending strategy as it builds out its AI-focused cloud infrastructure.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Google cuts 200 jobs as AI and cloud take priority

Google has laid off around 200 employees from its global business unit as the company sharpens its focus on AI and cloud services. The job cuts, which affected the sales and partnerships team, were first reported by The Information and later confirmed by Google.

The reduction forms part of a wider resource reallocation across parent company Alphabet, reflecting a broader trend in the tech sector.

Big tech firms, facing increased demand for AI development and data centre expansion, have been streamlining operations and shifting investments towards emerging technologies. Earlier this year, Meta also reduced its workforce by around 3,600 employees, citing performance-based criteria for the decision.

In a statement to Reuters, Google described the layoffs as a ‘small’ adjustment designed to streamline operations, improve collaboration, and enhance responsiveness to customer needs.

However, the latest move adds to a growing list of job cuts across Google since early 2023, when the company slashed 12,000 jobs — 6% of its global workforce.

Only last month, Google also reduced roles in its platforms and devices group. That round of layoffs affected teams working on key products such as Android, Pixel, and Chrome. As the company continues to prioritise AI and cloud growth, further workforce adjustments may be expected in the months ahead.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Chennai team wins ₹50 lakh at Agentforce Hackathon for AI hotel solution

AI took centre stage at the Agentforce Hackathon 2025 during TrailblazerDX in Bengaluru, where a Chennai-based team from Bounteous x Accolite Salesforce claimed the grand prize of ₹50 lakhs. Their AI-powered project impressed judges and attendees, standing out among 195 competing teams.

The team, calling themselves ‘Aichemist’, included Mayur Kinhekar, Rajaseeman PS, Yogeshwar Andi Sudhakaran, Sheetalraj Gangadhar, and Vijay Kalidasan. Together, they set out to revolutionise hospitality using Salesforce’s cloud platform.

Their Smart Hotel Agent uses data cloud, loyalty tiers, Slack, and service tablets to deliver seamless, personalised hotel experiences. ‘We are thrilled with this achievement,’ said senior consultant Mayur Kinhekar. ‘We are proud to be AI agents helping shape the future of AI.’

Team lead Rajaseeman PS explained that their goal was to reduce the need for human interaction in routine hotel tasks. By giving guests tablets, they created a solution that manages everything from check-in to check-out with ease.

In one example, Rajaseeman noted how a spill in a hotel room could be instantly reported and resolved through automated notifications sent to the appropriate department, bypassing traditional calls to the front desk.

By using AI to streamline services, the team not only improved guest experiences but also freed up hotel staff to focus on critical tasks. Their innovative approach captured the imagination of the hackathon’s judges and earned them the prestigious top spot and grand prize.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Amazon launches first Kuiper satellites to challenge Starlink

Amazon has launched the first 27 satellites of its Project Kuiper broadband network into low-Earth orbit, marking a major step in its $10bn plan to deliver global internet coverage and rival Elon Musk’s Starlink.

The satellites were launched aboard a United Launch Alliance Atlas V rocket from Cape Canaveral, Florida, after weather delays earlier this month. They are the first of over 3,200 that Amazon intends to deploy, with the aim of reaching underserved and remote areas around the world.

Project Kuiper, announced in 2019, has been slow to get off the ground. Amazon must deploy at least half its satellite constellation—1,618 units—by mid-2026 to meet US regulatory requirements, though analysts expect the company to seek an extension.

The launch puts Amazon into direct competition with SpaceX, which has already deployed over 8,000 Starlink satellites and serves more than 5 million users across 125 countries.

While SpaceX dominates the sector, Amazon hopes its strengths in cloud computing and consumer devices will give Kuiper an edge.

Jeff Bezos said he expects both Kuiper and Starlink to succeed, citing strong global demand for satellite internet. Kuiper consumer terminals will sell for under $400 and come in various sizes, including one comparable to a Kindle.

Amazon has booked 83 future launches with partners including ULA, Arianespace, and Bezos’s Blue Origin, making it the biggest satellite launch programme in history.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AI investments lift Alphabet despite cloud slowdown

Alphabet’s shares climbed over 5% in premarket trading after the company reported strong earnings that reassured investors of its AI strategy.

Despite a slight deceleration in advertising and cloud growth, Google’s parent company beat expectations, signalling that its major bets on artificial intelligence are starting to pay off.

Advertising revenue, which forms the backbone of Alphabet’s business, rose 8.5% in the first quarter to $66.89 billion—outperforming analyst projections.

Although this marks a slowdown from the previous quarter’s growth, it reinforces investor confidence in Alphabet’s ability to monetise AI across its services. Meanwhile, Google Cloud revenue grew by 28%, falling just short of forecasts and indicating some cooling in the segment.

The company is pressing ahead with its ambitious infrastructure plans, reaffirming a $75 billion investment in expanding data centre capacity.

Alongside Microsoft’s even larger plans, these efforts contribute to Big Tech’s anticipated $320 billion AI investment in 2025. However, growing trade tensions and fears of an economic downturn have led to questions about the sustainability of such capital spending.

While Alphabet remains a key player in the AI race, legal challenges loom large. Ongoing antitrust actions in the United States could compel the company to divest core assets like Chrome, as regulators seek to limit Google’s market dominance.

Nevertheless, many analysts remain optimistic, with several brokerages raising their price targets, pointing to Alphabet’s ability to deliver GenAI-powered products at scale despite headwinds.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!