Critical infrastructure

Europe prepares formal call for AI Gigafactory projects

The European Commission is collaborating with the EU capitals to narrow the list of proposals for large AI training hubs, known as AI Gigafactories. The €20 billion plan will be funded by the Commission (17%), the EU countries (17%), and industry (66%) to boost computing capacity for European developers.

The first call drew 76 proposals from 16 countries, far exceeding the initially planned four or five facilities. Most submissions must be merged or dropped, with Poland already seeking a joint bid with the Baltic states as talks continue.

Some EU members will inevitably lose out, with Ursula von der Leyen, the President of the European Commission, hinting that priority could be given to countries already hosting AI Factories. That could benefit Finland, whose Lumi supercomputer is part of a Nokia-led bid to scale up into a Gigafactory.

The plan has raised concerns that Europe’s efforts come too late, as US tech giants invest heavily in larger AI hubs. Still, Brussels hopes its initiative will allow EU developers to compete globally while maintaining control over critical AI infrastructure.

A formal call for proposals is expected by the end of the year, once the legal framework is finalised. Selection criteria and funding conditions will be set to launch construction as early as 2026.

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BlackRock backs South Korea push to become Asia AI hub

South Korea has secured a significant partnership with BlackRock to accelerate its ambition of becoming Asia’s leading AI hub. The agreement will see the global asset manager join the Ministry of Science and ICT in developing hyperscale AI data centres.

A deal that followed a meeting between President Lee Jae Myung and BlackRock chair Larry Fink, who pledged to attract large-scale international investment into the country’s AI infrastructure.

Although no figures were disclosed, the partnership is expected to focus on meeting rising demand from domestic users and the wider Asia-Pacific region, with renewable energy powering the facilities.

The move comes as Seoul increases national funding for AI, semiconductors and other strategic technologies to KRW150 trillion ($107.7 billion). South Korean companies are also stepping up efforts, with SK Telecom announcing plans to raise AI investment to a third of its revenue over five years.

BlackRock’s involvement signals international confidence in South Korea’s long-term vision to position itself as a regional AI powerhouse and secure a leadership role in next-generation digital infrastructure.

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Emerging AI trends that will define 2026

AI is set to reshape daily life in 2026, with innovations moving beyond software to influence the physical world, work environments, and international relations.

Autonomous agents will increasingly manage household and workplace tasks, coordinating projects, handling logistics, and interacting with smart devices instead of relying solely on humans.

Synthetic content will become ubiquitous, potentially comprising up to 90 percent of online material. While it can accelerate data analysis and insight generation, the challenge will be to ensure genuine human creativity and experience remain visible instead of being drowned out by generic AI outputs.

The workplace will see both opportunity and disruption. Routine and administrative work will increasingly be offloaded to AI, creating roles such as prompt engineers and AI ethics specialists, while some traditional positions face redundancy.

Similarly, AI will expand into healthcare, autonomous transport, and industrial automation, becoming a tangible presence in everyday life instead of remaining a background technology.

Governments and global institutions will grapple with AI’s geopolitical and economic impact. From trade restrictions to synthetic propaganda, world leaders will attempt to control AI’s spread and underlying data instead of allowing a single country or corporation to have unchecked dominance.

Energy efficiency and sustainability will also rise to the fore, as AI’s growing power demands require innovative solutions to reduce environmental impact.

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Health New Zealand appoints a new director to lead AI-driven innovation

Te Whatu Ora (the healthcare system of New Zealand) has appointed Sonny Taite as acting director of innovation and AI and launched a new programme called HealthX.

An initiative that aims to deliver one AI-driven healthcare project each month from September 2025 until February 2026, based on ideas from frontline staff instead of new concepts.

Speaking at the TUANZ and DHA Tech Users Summit in Auckland, New Zealand, Taite explained that HealthX will focus on three pressing challenges: workforce shortages, inequitable access to care, and clinical inefficiencies.

He emphasised the importance of validating ideas, securing funding, and ensuring successful pilots scale nationally.

The programme has already tested an AI-powered medical scribe in the Hawke’s Bay emergency department, with early results showing a significant reduction in administrative workload.

Taite is also exploring solutions for specialist shortages, particularly in dermatology, where some regions lack public services, forcing patients to travel or seek private care.

A core cross-functional team, a clinical expert group, and frontline champions such as chief medical officers will drive HealthX.

Taite underlined that building on existing cybersecurity and AI infrastructure at Te Whatu Ora, which already processes billions of security signals monthly, provides a strong foundation for scaling innovation across the health system.

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Cyberattack disrupts major European airports

Airports across Europe faced severe disruption after a cyberattack on check-in software used by several major airlines.

Heathrow, Brussels, Berlin and Dublin all reported delays, with some passengers left waiting hours as staff reverted to manual processes instead of automated systems.

Brussels Airport asked airlines to cancel half of Monday’s departures after Collins Aerospace, the US-based supplier of check-in technology, could not provide a secure update. Heathrow said most flights were expected to operate but warned travellers to check their flight status.

Berlin and Dublin also reported long delays, although Dublin said it planned to run a full schedule.

Collins, a subsidiary of aerospace and defence group RTX, confirmed that its Muse software had been targeted by a cyberattack and said it was working to restore services. The UK’s National Cyber Security Centre coordinates with airports and law enforcement to assess the impact.

Experts warned that aviation is particularly vulnerable because airlines and airports rely on shared platforms. They said stronger backup systems, regular updates and greater cross-border cooperation are needed instead of siloed responses, as cyberattacks rarely stop at national boundaries.

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UK and USA sign technology prosperity deal

The UK and the USA have signed a Memorandum of Understanding (MOU) regarding the technology prosperity deal. The aim is to facilitate collaboration on joint opportunities of mutual interest across strategic science and technology areas, including AI, civil energy, and quantum technologies.

The two countries intend to collaborate on building powerful AI infrastructure, expanding access to computing for researchers, and developing high-impact datasets.

Key focus areas include joint flagship research programs in priority domains such as biotechnology, precision medicine, and fusion energy, supported by leading science agencies from both the UK and the USA.

The partnership will also explore AI applications in space, foster secure infrastructure and hardware innovation, and promote AI exports. Efforts will be made to align AI policy frameworks, support workforce development, and ensure broad public benefit.

The US Center for AI Standards and Innovation and the UK AI Security Institute will work together to advance AI safety, model evaluation, and global standards through shared expertise and talent exchange.

Additionally, the deal aims to fast-track breakthrough technologies, streamline regulation, secure supply chains, and outpace strategic competitors.

In the nuclear sector, the countries plan joint efforts in advanced reactors, next-generation fuels, and fusion energy, while upholding the highest standards of safety and non-proliferation.

Lastly, the deal aims to develop powerful machines with real-world applications in defence, healthcare, and logistics, while prioritising research security, cyber resilience, and protection of critical infrastructure.

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Intel to design custom CPUs as part of NVIDIA AI partnership

The two US tech firms, NVIDIA and Intel, have announced a major partnership to develop multiple generations of AI infrastructure and personal computing products.

They say that the collaboration will merge NVIDIA’s leadership in accelerated computing with Intel’s expertise in CPUs and advanced manufacturing.

For data centres, Intel will design custom x86 CPUs for NVIDIA, which will be integrated into the company’s AI platforms to power hyperscale and enterprise workloads.

In personal computing, Intel will create x86 system-on-chips that incorporate NVIDIA RTX GPU chiplets, aimed at delivering high-performance PCs for a wide range of consumers.

As part of the deal, NVIDIA will invest $5 billion in Intel common stock at $23.28 per share, pending regulatory approvals.

NVIDIA’s CEO Jensen Huang described the collaboration as a ‘fusion of two world-class platforms’ that will accelerate computing innovation, while Intel CEO Lip-Bu Tan said the partnership builds on decades of x86 innovation and will unlock breakthroughs across industries.

The move underscores how AI is reshaping both infrastructure and personal computing. By combining architectures and ecosystems instead of pursuing separate paths, Intel and NVIDIA are positioning themselves to shape the next era of computing at a global scale.

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Character.AI and Google face suits over child safety claims

Three lawsuits have been filed in US federal courts alleging that Character.AI and its founders, with Google’s backing, deployed predatory chatbots that harmed children. The cases involve the family of 13-year-old Juliana Peralta, who died by suicide in 2023, and two other minors.

The complaints say the chatbots were designed to mimic humans, build dependency, and expose children to sexual content. Using emojis, typos, and pop-culture personas, the bots allegedly gained trust and encouraged isolation from family and friends.

Juliana’s parents say she engaged in explicit chats, disclosed suicidal thoughts, and received no intervention before her death. Nina, 15, from New York, attempted suicide after her mother blocked the app, while a Colorado, US girl known as T.S. was also affected.

Character.AI and Google are accused of misrepresenting the app as child-safe and failing to act on warning signs. The cases follow earlier lawsuits from the Social Media Victims Law Center over similar claims that the platform encouraged harm.

SMVLC founder Matthew Bergman stated that the cases underscore the urgent need for accountability in AI design and stronger safeguards to protect children. The legal team is seeking damages and stricter safety standards for chatbot platforms marketed to minors.

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Microsoft builds the world’s most powerful AI data centre in Wisconsin

US tech giant, Microsoft, is completing the construction of Fairwater in Mount Pleasant, Wisconsin, which it says will be the world’s most powerful AI data centre. The facility is expected to be operational in early 2026 after a $3.3 billion investment, with an additional $4 billion now committed for a second site.

The company says the project will help shape the next generation of AI by training frontier models with hundreds of thousands of NVIDIA GPUs, offering ten times the performance of today’s fastest supercomputers.

Beyond technology, Microsoft is highlighting the impact on local jobs and skills. Thousands of construction workers have been employed during the build, while the site is expected to support around 500 full-time roles when the first phase opens, rising to 800 once the second is complete.

The US giant has also launched Wisconsin’s first Datacentre Academy with Gateway Technical College to prepare students for careers in the digital economy.

Microsoft is also stressing its sustainability measures. The data centre will rely on a closed-loop liquid cooling system and outside air to minimise water use, while all fossil-fuel power consumed will be matched with carbon-free energy.

A new 250 MW solar farm is under construction in Portage County to support the commitment. The company has partnered with local organisations to restore prairie and wetland habitats, further embedding the project into the surrounding community.

Executives say the development represents more than just an investment in AI. It signals a long-term commitment to Wisconsin’s economy, education, and environment.

From broadband expansion to innovation labs, the company aims to ensure the benefits of AI extend to local businesses, students, and residents instead of remaining concentrated in global hubs.

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Huawei unveils roadmap for next-generation AI super pods

Huawei chairman Xu outlined the company’s roadmap for AI computing platforms, revealing plans to launch the Atlas 950 SuperPoD in Q4 2026. The system will use over 8,000 Ascend GPUs across 128 racks, covering 1,000 sq metres, and offer 6.7 times more computing power and 15 times more memory.

A year later, the Atlas 960 SuperPod will debut with up to 15,488 Ascend 960 chips, achieving 30 exaflops of computing power and 4,460TB of memory. Xu said the two systems will stay the world’s most potent super nodes, with uses beyond AI in general-purpose computing in China.

Huawei faces Western sanctions limiting access to advanced semiconductor nodes. Xu said assembling less advanced chips into super pods lets Huawei compete with rivals like Nvidia at a system level despite lower individual chip performance.

Over the next three years, Huawei will launch three new Ascend chip series: the 950 line, 950PR and 950DT, the 960, and the 970. The 950PR, optimised for early-stage inference and recommendations, will ship in Q1 2026, while the 950DT with 2Tb/s bandwidth will launch in Q4 2026.

The 960 will double its predecessor’s computing power and memory capacity and arrive in Q4 2027.

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