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Europe’s quantum ambitions meet US private power and China’s state drive

Quantum computing could fundamentally reshape technology, using quantum bits (qubits) instead of classical bits. Qubits allow complex calculations beyond classical computing, transforming sectors from pharmaceuticals to defence.

Europe is investing billions in quantum technology, emphasising technological sovereignty. Yet, it competes fiercely with the United States, which enjoys substantial private investment, and China, powered by significant state-backed funding.

The UK began quantum initiatives early, launching the National Quantum Programme 2014. It recently pledged £2.5 billion more, supporting start-ups like Orca Computing and Universal Quantum, alongside nations like Canada, Israel, and Japan.

Europe accounted for eight of the nineteen quantum start-ups established globally in 2024, including IQM Quantum Computers and Pasqal. Despite Europe’s scientific strengths, it only captured 5% of global quantum investments, versus 50% for the US.

The European Commission aims to strengthen quantum capabilities by funding six chip factories and a continent-wide Quantum Skills Academy. However, attracting sufficient private investment remains a significant challenge.

The US quantum industry thrives, driven by giants such as IBM, Google, Microsoft, IonQ, Rigetti, and D-Wave Quantum. Recent breakthroughs include Microsoft’s topological qubit and Google’s Willow quantum chip.

D-Wave Quantum has demonstrated real-world quantum advantages, solving complex optimisation problems in minutes. Its technology is now used commercially in logistics, traffic management, and supply chains.

China, meanwhile, leads in state-driven quantum funding, investing $15 billion directly and managing a $138 billion tech venture fund. By contrast, US federal investment totals about $6 billion, underscoring China’s aggressive approach.

Global investment in quantum start-ups reached $1.25 billion in Q1 2025 alone, reflecting a shift towards practical applications. By 2040, the quantum market is projected to reach $173 billion, influencing global economics and geopolitics.

Quantum computing raises geopolitical concerns, prompting democratic nations to coordinate through bodies like the OECD and G7. Interoperability, trust, and secure infrastructure have become essential strategic considerations.

Europe’s quantum ambitions require sustained investment, standard-setting leadership, and robust supply chains. Its long-term technological independence hinges on moving swiftly beyond initial funding towards genuine strategic autonomy.

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AI Appreciation Day highlights progress and growing concerns

AI is marking another milestone as experts worldwide reflect on its rapid rise during AI Appreciation Day. From reshaping business workflows to transforming customer experiences, AI’s presence is expanding — but so are concerns over its long-term implications.

Industry leaders point to AI’s growing role across sectors. Patrick Harrington from MetaRouter highlights how control over first-party data is now seen as key instead of just processing large datasets.

Vall Herard of Saifr adds that successful AI implementations depend on combining curated data with human oversight rather than relying purely on machine-driven systems.

Meanwhile, Paula Felstead from HBX Group believes AI could significantly enhance travel experiences, though scaling it across entire organisations remains a challenge.

Voice AI is changing industries that depend on customer interaction, according to Natalie Rutgers from Deepgram. Instead of complex interfaces, voice technology is improving communication in restaurants, hospitals, and banks.

At the same time, experts like Ivan Novikov from Wallarm stress the importance of securing AI systems and the APIs connecting them, as these form the backbone of modern AI services.

While some celebrate AI’s advances, others raise caution. SentinelOne’s Ezzeldin Hussein envisions AI becoming a trusted partner through responsible development rather than unchecked growth.

Naomi Buckwalter from Contrast Security warns that AI-generated code could open security gaps instead of fully replacing human engineering, while Geoff Burke from Object First notes that AI-powered cyberattacks are becoming inevitable for businesses unable to keep pace with evolving threats.

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Air Serbia suffers deep network compromise in July cyberattack

Air Serbia delayed issuing June payslips after a cyberattack disrupted internal systems, according to internal memos obtained by The Register. A 10 July note told staff: ‘Given the ongoing cyberattacks, for security reasons, we will postpone the distribution of June 2025 payslips.’

The IT department is reportedly working to restore operations, and payslips will be emailed once systems are secure again. Although salaries were paid, staff could not access their payslip PDFs due to the disruption.

HR warned employees not to open suspicious emails, particularly those appearing to contain payslips or that seemed self-addressed. ‘We kindly ask that you act responsibly given the current situation,’ said one memo.

Air Serbia first informed staff about the cyberattack on 4 July, with IT teams warning of possible disruptions to operations. Managers were instructed to activate business continuity plans and adapt workflows accordingly.

By 7 July, all service accounts had been shut down, and staff were subjected to company-wide password resets. Security-scanning software was installed on endpoints, and internet access was restricted to selected airserbia.com pages.

A new VPN client was deployed due to security vulnerabilities, and data centres were shifted to a demilitarised zone. On 11 July, staff were told to leave their PCs locked but running over the weekend for further IT intervention.

An insider told The Register that the attack resulted in a deep compromise of Air Serbia’s Active Directory environment. The source claims the attackers may have gained access in early July, although exact dates remain unclear due to missing logs.

Staff reportedly fear that the breach could have involved personal data, and that the airline may not disclose the incident publicly. According to the insider, attackers had been probing Air Serbia’s exposed endpoints since early 2024.

The airline also faced several DDoS attacks earlier this year, although the latest intrusion appears far more severe. Malware, possibly an infostealer, is suspected in the breach, but no ransom demands had been made as of 15 July.

Infostealers are often used in precursor attacks before ransomware is deployed, security experts warn. Neither Air Serbia nor the government of Serbia responded to media queries by the time of publication.

Air Serbia had a record-breaking year in 2024, carrying 4.4 million passengers — a 6 percent increase over the previous year. Cybersecurity experts recently warned of broader attacks on the aviation industry, with groups such as Scattered Spider under scrutiny.

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Trump unveils AI economy with $100 billion investment push

Donald Trump revealed during the Pittsburgh, Pennsylvania Energy and Innovation Summit that the US will receive over $100 billion in investments to drive its AI economy and energy infrastructure.

The funding is set to create tens of thousands of jobs across the energy and AI sectors, with Pennsylvania positioned as a central hub.

Trump stated the US is already ‘way ahead of China’ in AI development, adding that staying in the lead will require expanding power production.

Instead of relying solely on renewables, Trump highlighted ‘clean, beautiful coal, oil, and nuclear energy as key pillars supporting AI-related growth.

Westinghouse plans to build several nuclear plants nationwide, while Knighthead Capital will invest $15 billion in North America’s largest natural gas power plant in Homer City, Pennsylvania.

Additionally, Google will revitalise two hydropower facilities within the state, contributing to the broader investment wave. Trump mentioned that 20 major technology and energy firms are preparing further commitments in Pennsylvania, reinforcing its role in what he calls the US ‘AI economy’.

The event, hosted by Senator Dave McCormick at Carnegie Mellon University, also featured discussions with Pennsylvania Governor Josh Shapiro.

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Scalable quantum light factory chip unveiled

A milestone in quantum technology was achieved with the world’s first silicon chip that integrates quantum light sources and stabilising control electronics, fabricated using a standard commercial 45 nm semiconductor process. The compact chip, roughly 1 mm square, generates correlated photon pairs, key for secure communication, sensing, and computing, while built-in feedback circuits maintain performance under variable conditions.

Engineers from Northwestern University, Boston University and UC Berkeley collaborated to embed microring resonators, photodiodes, on-chip heaters and control logic, packaging them into a single, scalable system. The result is the first demonstration of a “quantum light factory” chip produced in mass-production foundries, bypassing bulky lab setups and paving the path for widespread deployment.

Researchers believe this advancement marks a crucial step forward. The ability to manufacture quantum photonic systems at scale could lead to secure quantum networks, advanced sensing platforms, and eventually photonic quantum computers. By proving the integration of quantum and classical electronics on shared silicon technologies is possible, the team has opened a new frontier in quantum engineering.

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Meta opens audio lab to improve AI smart glasses

Meta has unveiled a £12 million audio research lab in Cambridge’s Ox‑Cam corridor, aimed at enhancing immersive sound for its Ray‑Ban Meta and upcoming Oakley Meta glasses. The facility includes advanced acoustic testing environments, motion‑tracked living spaces, and one of the world’s largest configurable reverberation chambers, enabling engineers to fine‑tune spatial audio through real‑world scenarios.

Designed to filter noise, focus on speech, and respond to head movement, the lab is developing adaptive audio intelligent enough to improve clarity in settings like busy streets or on public transport. Meta plans to integrate these features into its next generation of AR eyewear.

Officials say the lab represents a long‑term investment in UK engineering talent and bolsters the Oxford‑to‑Cambridge tech corridor. Meta’s global affairs lead and the Chancellor emphasised the significance of the investment, supported by a national £22 billion R&D strategy. This marks Meta’s largest overseas engineering base and reinforces its ambition to lead the global AI glasses market.

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First single-photon universal quantum system due 2026

Dutch startup QuiX Quantum has raised €15 million in Series A funding to deliver the world’s first single-photon‑based universal photonic quantum computer by 2026. This ambitious project was backed by Invest‑NL, the European Innovation Council, PhotonVentures, Oost NL and Forward One.

Since its 2019 founding, QuiX Quantum has set benchmarks with 8‑qubit and 64‑qubit photonic processors, including a notable delivery to the German Aerospace Center in 2022. Its next objective is a universal gate‑set system with fast feed‑forward electronics and single‑photon sources, essential components for fault‑tolerant, large‑scale quantum computing.

The investment will also bolster Europe’s quantum photonics supply chain. QuiX Quantum plans to deploy its systems in practical fields such as chemical simulation, pharmaceutical discovery, fraud detection and precision manufacturing, marking a key step toward commercialising quantum technology.

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Defence AI Centre at heart of Korean strategy

South Korea has unveiled a strategy to share extensive military data with defence firms to a ccelerate AI-powered weapon systems, inspired by US military cloud initiatives. Plans include a national public–private fund to finance innovation and bolster the country’s defence tech prowess.

A specialised working group of around 30 experts, including participants from the Defence Acquisition Program Administration, is drafting standards for safety and reliability in AI weapon systems. Their work aims to lay the foundations for the responsible integration of AI into defence hardware.

Officials highlight the need to merge classified military databases into a consolidated defence cloud, moving away from siloed systems. This model follows the tiered cloud framework adopted by the US, enabling more agile collaboration between the military and industry.

South Korea is also fast-tracking development across core defence domains, such as autonomous drones, command-and-control systems, AI-enabled surveillance, and cyber operations. These efforts are underpinned by the recently established Defence AI Centre, positioning the country at the forefront of Asia’s military AI race.

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EXA to boost European connectivity with new fibre route and subsea cable

EXA Infrastructure has launched a strategic 1,200 km high-capacity fibre route connecting London, Frankfurt, Amsterdam, and Brussels (FLAP cities), featuring the first new subsea cable in the North Sea corridor in 25 years.

The new deployment includes 1,085 km of low-loss terrestrial fibre and a 115 km subsea segment using ultra-low-loss G.654C cable, running between Margate (UK) and Ostend (Belgium).

The project also introduces two new landing stations, EXA’s 21st and 22nd globally, enhancing its infrastructure across the UK, Belgium, and the Netherlands. These efforts complement EXA’s prior investments in the Channel Tunnel route, including upgrades to in-line amplifier (ILA) facilities and modern, high-fibre-count cables.

The new route is part of EXA’s broader push to improve Europe’s digital infrastructure with ultra-low latency, high-bandwidth, and scalable fibre paths between key hubs.

Over 65,000 km of its network is now 400G-enabled, supporting future scalability demands. EXA’s network spans 155,000 km across 37 countries, including six transatlantic cables. Among them is EXA Express, which offers the lowest latency link between Europe and North America.

The network serves a range of mission-critical functions, including hyperscale infrastructure for global enterprises, government networks, and specialised solutions for latency-sensitive industries like finance, gaming, and broadcasting.

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Military AI and the void of accountability

In her blog post ‘Military AI: Operational dangers and the regulatory void,’ Julia Williams warns that AI is reshaping the battlefield, shifting from human-controlled systems to highly autonomous technologies that make life-and-death decisions. From the United States’ Project Maven to Israel’s AI-powered targeting in Gaza and Ukraine’s semi-autonomous drones, military AI is no longer a futuristic concept but a present reality.

While designed to improve precision and reduce risks, these systems carry hidden dangers—opaque ‘black box’ decisions, biases rooted in flawed data, and unpredictable behaviour in high-pressure situations. Operators either distrust AI or over-rely on it, sometimes without understanding how conclusions are reached, creating a new layer of risk in modern warfare.

Bias remains a critical challenge. AI can inherit societal prejudices from the data it is trained on, misinterpret patterns through algorithmic flaws, or encourage automation bias, where humans trust AI outputs even when they shouldn’t.

These flaws can have devastating consequences in military contexts, leading to wrongful targeting or escalation. Despite attempts to ensure ‘meaningful human control’ over autonomous weapons, the concept lacks clarity, allowing states and manufacturers to apply oversight unevenly. Responsibility for mistakes remains murky—should it lie with the operator, the developer, or the machine itself?

That uncertainty feeds into a growing global security crisis. Regulation lags far behind technological progress, with international forums disagreeing on how to govern military AI.

Meanwhile, an AI arms race accelerates between the US and China, driven by private-sector innovation and strategic rivalry. Export controls on semiconductors and key materials only deepen mistrust, while less technologically advanced nations fear both being left behind and becoming targets of AI warfare. The risk extends beyond states, as rogue actors and non-state groups could gain access to advanced systems, making conflicts harder to contain.

As Williams highlights, the growing use of military AI threatens to speed up the tempo of conflict and blur accountability. Without strong governance and global cooperation, it could escalate wars faster than humans can de-escalate them, shifting the battlefield from soldiers to civilian infrastructure and leaving humanity vulnerable to errors we may not survive.

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