EU and Indonesia free trade deal strengthens tech and digital supply chains

The European Union and Indonesia have concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA), strongly emphasising technology, digitalisation and sustainable industries.

The agreements are designed to expand trade, secure critical raw materials, and drive the green and digital transitions.

Under the CEPA, tariffs on 98.5% of trade lines will be removed, cutting costs by €600 million annually and giving EU companies greater access to Indonesia’s fast-growing technology sectors, including electric vehicles, electronics and pharmaceuticals.

European firms will also gain full ownership rights in key service areas such as computers and telecommunications, helping deepen integration of digital supply chains.

A deal that embeds commitments to the Paris Agreement while promoting renewable energy and low-carbon technologies. It also includes cooperation on digital standards, intellectual property protections and trade facilitation for sectors vital to Europe’s clean tech and digital industries.

With Indonesia as a leading producer of critical raw materials, the agreement secures sustainable and predictable access to inputs essential for semiconductors, batteries and other strategic technologies.

Launched in 2016, the negotiations concluded after the political agreement reached in July 2025 between Presidents Ursula von der Leyen and Prabowo Subianto. The texts will undergo legal review before the EU and Indonesia ratification, opening a new chapter in tech-enabled trade and innovation.

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

Stellantis hit by breach affecting millions of customers

Stellantis, the parent company of Jeep, Chrysler and Dodge, has disclosed a data breach affecting its North American customer service operations.

The company said it recently discovered unauthorised access to a third-party service platform and confirmed that customer contact details were exposed. Stellantis stressed that no financial information was compromised and that affected customers and regulators are being notified.

Cybercriminal group ShinyHunters has claimed responsibility, telling tech site BleepingComputer it had stolen over 18 million Salesforce records from the automaker, including names and contact information. Stellantis has not confirmed the number of records involved.

ShinyHunters has targeted several global firms this year, including Google, Louis Vuitton and Allianz Life, often using voice phishing to trick employees into downloading malicious software. The group claims to have stolen 1.5 billion Salesforce records from more than 700 companies worldwide.

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

UN climate chief calls for action on AI, energy and finance ahead of COP30

At Climate Week NYC 2025, UN Climate Chief Simon Stiell urged governments and industries to accelerate clean energy, embrace industrial and AI transformation, and prepare for decisive progress at COP30 in Belém.

He highlighted that renewable investment reached US$2 trillion last year and that most new renewable projects are cheaper than fossil fuels, showing that the transition is already underway instead of being dependent on breakthroughs.

Stiell warned, however, that the benefits remain uneven and too many industrial projects lie idle. He called on governments to align policy and finance with the Paris Agreement sector by sector while unlocking innovation to create millions of jobs.

On AI, he stressed the importance of harnessing its catalytic potential responsibly, using it to manage energy grids, map climate risks and guide planning, rather than allowing it to displace human skills.

Looking ahead, the UN Climate Chief pointed to the Baku to Belém Roadmap, a plan to mobilise at least US$1.3 trillion annually by 2035 to support climate action in developing countries. He said COP30 must respond to this roadmap, accelerate progress on national climate commitments and deliver for vulnerable communities.

Above all, he argued that climate cooperation is bending the warming curve and must continue to drive real-world improvements in jobs, health and energy access instead of faltering.

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

ChatGPT Go launches in Indonesia with $4.5 monthly plan

OpenAI has launched its low-cost ChatGPT Go subscription in Indonesia, pricing it at 75,000 rupiah ($4.5) per month. The new plan offers ten times more messaging capacity, image generation tools and double memory compared with the free version.

The rollout follows last month’s successful launch in India, where ChatGPT subscriptions more than doubled. India has since become OpenAI’s largest market, accounting for around 13.5% of global monthly active users. The US remains second.

Nick Turley, OpenAI Vice President and head of ChatGPT, said Indonesia is already one of the platform’s top five markets by weekly activity. The new tier is aimed at expanding reach in populous, price-sensitive regions while ensuring broader access to AI services.

OpenAI is also strengthening its financial base as it pushes into new markets. On Monday, the company secured a $100 billion investment commitment from NVIDIA, joining Microsoft and SoftBank among its most prominent backers. The funding comes amid intensifying competition in the AI industry.

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

NVIDIA and OpenAI partner to build 10 gigawatts of AI data centres

OpenAI and NVIDIA have announced a strategic partnership to build at least 10 gigawatts of AI data centres powered by millions of NVIDIA GPUs.

A deal, supported by the investment of up to $100 billion from NVIDIA, that aims to provide the infrastructure for OpenAI’s next generation of models, with the first phase scheduled for late 2026 on the NVIDIA Vera Rubin platform.

The companies said the collaboration will enable the development of AGI and accelerate AI adoption worldwide. OpenAI will treat NVIDIA as its preferred strategic compute and networking partner, coordinating both sides’ hardware and software roadmaps.

They will also continue working with Microsoft, Oracle, SoftBank and other partners to build advanced AI infrastructure.

OpenAI has grown to more than 700 million weekly users across businesses and developers globally. Executives at both firms described the new partnership as the next leap in AI computing power, one intended to fuel innovation at scale instead of incremental improvements.

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

Google DeepMind updates AI safety framework for advanced risks

A leading AI developer has released the third iteration of its Frontier Safety Framework (FSF), aiming to identify and mitigate severe risks from advanced AI models. The update expands risk domains and refines the process for assessing potential threats.

Key changes include the introduction of a Critical Capability Level (CCL) focused on harmful manipulation. The update targets AI models with the potential to systematically influence beliefs and behaviours in high-stakes contexts, ensuring safety measures keep pace with growing model capabilities.

The framework also enhances protocols for misalignment risks, addressing scenarios where AI could override operators’ control or shutdown attempts. Safety case reviews are now conducted before external launches and large-scale internal deployments reach critical thresholds.

The updated FSF sharpens risk assessments and applies safety and security mitigations in proportion to threat severity. It reflects a commitment to evidence-based AI governance, expert collaboration, and ensuring AI benefits humanity while minimising risks.

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

Jaguar shutdown extended as ministers meet suppliers

Jaguar Land Rover (JLR) has confirmed its factories will remain closed until at least 1 October, extending a shutdown triggered by a cyber-attack in late August.

Business Secretary Peter Kyle and Industry Minister Chris McDonald are meeting JLR and its suppliers, as fears mount that small firms in the supply chain could collapse without the support of the August cyberattack.

The disruption, estimated to cost JLR £50m per week, affects UK plants in Solihull, Halewood and Wolverhampton. About 30,000 people work directly for JLR, with a further 100,000 in its supply chain.

Unions say some supplier staff have been laid off with little or no pay, forcing them to seek Universal Credit. Unite has called for a furlough-style scheme, while MPs have pressed the government to consider emergency loans.

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

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.

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

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.

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

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.

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