Critical infrastructure

UK partners with DeepMind to boost AI innovation

The UK Department for Science, Innovation and Technology (DSIT) has entered a strategic partnership with Google DeepMind to advance AI across public services, research, and security.

The non-legally binding memorandum of understanding outlines a shared commitment to responsible AI development, while enhancing national readiness for transformative technologies.

The collaboration will explore AI solutions for public services, including education, government departments, and the Incubator for AI (i.AI). Google DeepMind may provide engineering support and develop AI tools, including a government-focused version of Gemini aligned with the national curriculum.

Researchers will gain priority access to DeepMind’s AI models, including AlphaEvolve, AlphaGenome, and WeatherNext, with joint initiatives supporting automated R&D and lab facilities in the UK. The partnership seeks to accelerate innovation in strategically important areas such as fusion energy.

AI security will be strengthened through the UK AI Security Institute, which will share model insights, address emerging risks, and enhance national cyber preparedness. The MoU is voluntary, spans 36 months, and ensures compliance with data privacy laws, including UK GDPR.

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Vietnam passes first AI law to strict safeguards

Vietnam’s National Assembly has passed its first AI Law, advancing the regulation and development of AI nationwide. The legislation was approved with overwhelming support, alongside amendments to the Intellectual Property Law and a revised High Technology Law.

The AI Law will take effect on March 1, 2026.

The law establishes core principles, prohibits certain acts, and outlines a risk management framework for AI systems. The law combines safeguards for high-risk AI with incentives for innovation, including sandbox testing, a National AI Development Fund, and startup vouchers.

AI oversight will be centralised under the Government, led by the Ministry of Science and Technology, with assessments needed only for high-risk systems approved by the Prime Minister. The law allows real-time updates to this list to keep pace with technological advances.

Flexible provisions prevent obsolescence by avoiding fixed technology lists or rigid risk classifications. Lawmakers emphasised the balance between regulation and innovation, aiming to create a safe yet supportive environment for AI growth in Vietnam.

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EU advances ambitious gigafactory programme for AI leadership

The Council has agreed on a significant amendment to the EuroHPC Joint Undertaking regulation, aiming to establish AI gigafactories across Europe alongside a new quantum pillar.

The plan advances earlier efforts to build AI factories and redirects unused EU funds toward larger and more ambitious facilities. Up to five gigafactories are expected, supported through public and private partnerships that promise a stronger technological base for European research and industry.

AI gigafactories will combine high-performance computing, energy-efficient data centres and automated systems to give Europe world-class AI capacity. The regulation sets out firm rules for funding and procurement while protecting start-ups and scale-ups.

It also allows gigafactories to be spread across multiple countries, creating a flexible model that can strengthen European resilience, competitiveness and security instead of relying heavily on American or Chinese infrastructure.

An agreement that updates the governance of EuroHPC and introduces safeguards for participation from partners outside the EU. Quantum research and innovation activities will move from Horizon Europe to EuroHPC in order to consolidate work on critical technologies.

In a shift that aims to widen the impact of supercomputing and quantum infrastructure while supporting the development of essential skills for science and industry.

The next stage involves the European Parliament delivering its opinion on 17 December.

A final Council adoption will follow once legal and linguistic checks have been completed, marking a decisive step towards Europe’s new AI and quantum capability.

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US War Department unveils AI-powered GenAI.mil for all personnel

The War Department has formally launched GenAI.mil, a bespoke generative AI platform powered initially by Gemini for Government, making frontier AI capabilities available to its approximately three million military, civilian, and contractor staff.

According to the department’s announcement, GenAI.mil supports so-called ‘intelligent agentic workflows’: users can summarise documents, generate risk assessments, draft policy or compliance material, analyse imagery or video, and automate routine tasks, all on a secure, IL5-certified platform designed for Controlled Unclassified Information (CUI).

The rollout, described as part of a broader push to cultivate an ‘AI-first’ workforce, follows a July directive from the administration calling for the United States to achieve ‘unprecedented levels of AI technological superiority.’

Department leaders said the platform marks a significant shift in how the US military operates, embedding AI into daily workflows and positioning AI as a force multiplier.

Access is limited to users with a valid DoW common-access card, and the service is currently restricted to non-classified work. The department also says the first rollout is just the beginning; additional AI models from other providers will be added later.

From a tech-governance and defence-policy perspective, this represents one of the most sweeping deployments of generative AI in a national security organisation to date.

It raises critical questions about security, oversight and the balance between efficiency and risk, especially if future iterations expand into classified or operational planning contexts.

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EIB survey shows EU firms lead in investment, innovation and green transition

European firms continue to invest actively despite a volatile global environment, demonstrating resilience, innovation, and commitment to sustainability, according to the European Investment Bank (EIB) Group’s 2025 Investment Survey.

Across the EU, companies are expanding capacity, adopting advanced digital technologies, and pursuing green investment to strengthen competitiveness.

Spanish firms, for example, are optimistic about their sector, prioritising capacity growth, using generative AI, and investing in energy efficiency and climate risk insurance.

Digital transformation is accelerating across the continent. Austrian and Finnish firms stand out for their extensive adoption of generative AI and multiple advanced digital tools, while Belgian companies excel in integrating digital technologies alongside green initiatives.

Czech firms devote a larger share of investment to capacity expansion and innovation, with high engagement in international trade and strategic use of digital solutions. These trends are highlighted in country-level EIB reports and reflect broader European patterns.

The green transition remains central to corporate strategies. Many firms actively reduce emissions, improve energy efficiency, and view sustainability as a business opportunity rather than a regulatory burden.

In Belgium, investments in energy efficiency and waste reduction are among the highest in the EU, while nearly all Finnish companies report taking measures to reduce greenhouse gases.

Across Europe, firms increasingly combine environmental action with innovation to maintain competitiveness and resilience.

Challenges persist, including skills shortages, uncertainty, high energy costs, and regulatory complexity. Despite these obstacles, European businesses continue to innovate, expand, and embrace international trade.

EIB surveys show that firms are leveraging technology and green investments not only to navigate economic uncertainty but also to position themselves for long-term growth and strategic advantage in a changing global landscape.

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Microsoft commits $17.5 billion to AI in India

The US tech giant, Microsoft, has announced its largest investment in Asia, committing US$17.5 billion to India over four years to expand cloud and AI infrastructure, workforce skilling, and operations nationwide.

An announcement that follows the US$3 billion investment earlier in 2025 and aims to support India’s ambition to become a global AI leader.

The investment focuses on three pillars: hyperscale infrastructure, sovereign-ready solutions, and workforce development. A new hyperscale data centre in Hyderabad, set to go live by mid-2026, will become Microsoft’s largest in India.

Expansion of existing data centres in Chennai, Hyderabad and Pune will improve resilience and low-latency performance for enterprises, startups, and public sector organisations.

Microsoft will integrate AI into national platforms, including e-Shram and the National Career Service, benefiting over 310 million informal workers. AI-enabled features include multilingual access, predictive analytics, automated résumé creation, and personalised pathways toward formal employment.

Skilling initiatives will be doubled to reach 20 million Indians by 2030, building an AI-ready workforce that can shape the country’s digital future.

Sovereign Public and Private Cloud solutions will provide secure, compliant environments for Indian organisations, supporting both connected and disconnected operations.

Microsoft 365 Copilot will process data entirely within India by the end of 2025, enhancing governance, compliance, and performance across regulated sectors. These initiatives aim to position India as a global AI hub powered by scale, skilling, and digital sovereignty.

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G7 ministers meet in Montreal to boost industrial cooperation

Canada has opened the G7 Industry, Digital and Technology Ministers’ Meeting in Montreal, bringing together ministers, industry leaders, and international delegates to address shared industrial and technological challenges.

The meeting is being led by Industry Minister Melanie Joly and AI and Digital Innovation Minister Evan Solomon, with discussions centred on strengthening supply chains, accelerating innovation, and boosting industrial competitiveness across advanced economies.

Talks will focus on building resilient economies, expanding trusted digital infrastructure, and supporting growth while aligning industrial policy with economic security and national security priorities shared among G7 members.

The agenda builds on outcomes from the recent G7 leaders’ summit in Kananaskis, Canada, including commitments on quantum technologies, critical minerals cooperation, and a shared statement on AI and prosperity.

Canadian officials said closer coordination among trusted partners is essential amid global uncertainty and rapid technological change, positioning innovation-driven industry as a long-term foundation for economic growth, productivity, and shared prosperity.

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Russia moves forward with a nationwide plan for generative AI

A broad plan to integrate generative AI across public administration and key sectors of the economy is being prepared by Russia.

Prime Minister Mikhail Mishustin explained that the new framework seeks to extend modern AI tools across regions and major industries in order to strengthen national technological capacity.

The president has already underlined the need for fully domestic AI products as an essential element of national sovereignty. Moscow intends to rely on locally developed systems instead of foreign platforms, an approach aimed at securing long-term independence and resilience.

A proposal created by the government and the Presidential Administration has been submitted for approval to establish a central headquarters that will guide the entire deployment effort.

The new body will set objectives, track progress and coordinate work across ministries and agencies while supporting broader access to advanced capabilities.

Officials in Russia view the plan as a strategic investment intended to reinforce national competitiveness in a rapidly changing technological environment.

Greater use of generative systems is expected to improve administrative efficiency, support regional development and encourage innovation across multiple sectors.

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Canada-EU digital partnership expands cooperation on AI and security

The European Union and Canada have strengthened their digital partnership during the first Digital Partnership Council in Montreal. Both sides outlined a joint plan to enhance competitiveness and innovation, while supporting smaller firms through targeted regulation.

Senior representatives reconfirmed that cooperation with like-minded partners will be essential for economic resilience.

A new Memorandum of Understanding on AI placed a strong emphasis on trustworthy systems, shared standards and wider adoption across strategic sectors.

The two partners will exchange best practices to support sectors such as healthcare, manufacturing, energy, culture and public services.

They also agreed to collaborate on large-scale AI infrastructures and access to computing capacity, while encouraging scientific collaboration on advanced AI models and climate-related research.

A meeting that also led to an agreement on a structured dialogue on data spaces.

A second Memorandum of Understanding covered digital credentials and trust services. The plan includes joint testing of digital identity wallets, pilot projects and new use cases aimed at interoperability.

The EU and Canada also intend to work more closely on the protection of independent media, the promotion of reliable information online and the management of risks created by generative AI.

Both sides underlined their commitment to secure connectivity, with cooperation on 5G, subsea cables and potential new Arctic routes to strengthen global network resilience. Further plans aim to deepen collaboration on quantum technologies, semiconductors and high-performance computing.

A renewed partnership that reflects a shared commitment to resilient supply chains and secure cloud infrastructure as both regions prepare for future technological demands.

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Growing app restrictions hit ByteDance’s AI smartphone rollout

ByteDance is facing mounting pushback after major Chinese apps restricted how its agentic AI smartphone can operate across their platforms. Developers moved to block or limit Doubao, the device’s voice-driven assistant, following concerns about automation, security and transactional risks.

Growing reports from early adopters describe locked accounts, interrupted payments and app instability when Doubao performs actions autonomously. ByteDance has responded by disabling the assistant’s access to financial services, rewards features and competitive games while collaborating with app providers to establish clearer guidelines.

The Nubia M153, marketed as an experimental device, continues to attract interest for its hands-free interface, even as privacy worries persist over its device-wide memory system. Its long-term success hinges on whether China’s platforms and regulators can align with ByteDance’s ambitions for seamless, AI-powered smartphone interaction.

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