Development Archives | Page 2 of 519 | Digital Watch Observatory

UK opens supercomputing access to boost AI startups

Britain is opening access to its national AI Research Resource to support domestic AI development. Startups and spinouts can now use supercomputers previously reserved for frontier research.

The AIRR combines infrastructure from government, universities and leading technology firms. It provides the computing power needed to train models and run complex simulations.

Access will be worth around £20 million per year for participating companies. Officials say reducing compute barriers will help startups move faster from prototype to product.

The government’s Sovereign AI Unit, backed by up to £500 million, will also support long-term growth. The programme targets areas including advanced models, scientific discovery and trustworthy AI systems.

Concerns remain over regulatory alignment with the EU’s stricter AI rules. Tensions could shape whether the UK maintains a more flexible environment for innovation.

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Dublin launches major data centre microgrid

A new 110MW data centre microgrid has been launched in Dublin to support rising AI-driven energy demand. The system is designed to provide reliable power during early development stages before full grid connection.

The project combines energy generation, battery storage and heat recovery to improve efficiency and resilience. Developers say the system can help address power constraints affecting large-scale cloud and AI facilities.

Industry leaders in Dublin say the microgrid offers a model for integrating renewable energy with traditional infrastructure. The approach could be replicated in other European markets facing similar grid limitations.

Experts say the system also enables future innovations such as hydrogen integration and district heating. The project reflects a broader shift towards treating energy as a strategic asset in the expansion of AI infrastructure.

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AI platform boosts efficiency in Tokyo administration

Tokyo authorities are accelerating the adoption of generative AI across public administration, aiming to improve efficiency and address labour shortages. Municipal governments across the capital are increasingly integrating AI into daily operations.

A new AI platform with GovTech Tokyo enables public employees to build customised applications without advanced technical skills. Built on open-source software, the system lowers costs and removes barriers linked to development and infrastructure.

Practical applications include document drafting tools, regulatory search systems, and internal chatbots. Early deployments, such as in Sumida Ward, show reduced operational costs and faster workflows compared to outsourcing solutions.

GovTech Tokyo, established in 2023 to lead digital transformation, continues to expand support frameworks and expertise. Plans are underway to enable the sharing of AI applications across municipalities, strengthening collaboration and standardising innovation across the capital.

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White-collar jobs hold steady as automation concerns grow

Mass layoffs across major tech firms, including Amazon’s 16,000 job cuts, have intensified concerns that AI will replace white-collar workers. Headlines suggest a rapid shift, yet broader labour data tells a more measured story.

US employment has grown by 1.1% since the launch of ChatGPT in November 2022, reaching over 157 million workers. Service industries expanded significantly, adding more than two million jobs, while goods-producing sectors declined modestly.

Overall trends indicate no major disruption to the labour market so far.

Sector-level data reveals uneven shifts. The information industry recorded the steepest losses, particularly in media, telecoms, and content production, where automation and long-term structural changes continue to reduce headcounts.

Meanwhile, highly automatable roles such as telemarketing and call centres saw the sharpest declines.

Professional services present a more complex picture. Legal, engineering, and consulting roles have grown or remained stable, defying expectations of widespread displacement.

Hiring continues to exceed layoffs in several sectors, though younger workers appear increasingly vulnerable as competition intensifies in AI-exposed roles.

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Tether unveils mobile-friendly AI training platform

Tether has launched an AI framework that runs large language models on smartphones and non-NVIDIA GPUs. The system is part of its QVAC platform and uses Microsoft’s BitNet architecture, along with LoRA techniques to reduce memory and computational requirements.

The framework enables cross-platform training on AMD, Intel, Apple Silicon, and mobile GPUs, allowing models with up to 1 billion parameters to be fine-tuned on phones in under 2 hours.

Larger models with up to 13 billion parameters are also supported on mobile devices. BitNet’s 1-bit architecture reduces VRAM requirements by nearly 78%, enabling larger models to run on limited hardware.

Performance improvements benefit inference, with mobile GPUs outperforming CPUs, enabling on-device training and federated learning. By reducing reliance on cloud infrastructure, the system offers more flexible AI development for distributed environments.

Tether’s expansion into AI mirrors a broader trend in the crypto sector, where companies are investing in AI infrastructure, autonomous agents, and high-performance computing.

Industry activity includes record revenue growth for AI and HPC operations, blockchain-integrated AI agents, and new tools for secure on-chain transactions.

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AgentKit enables ID verification for AI-powered online commerce

Tools for Humanity has introduced a new verification system to strengthen trust in online transactions, as demand for reliable ID verification tools grows in AI-driven environments. The update builds on its World project, which aims to prove that real humans, rather than automated systems, are behind digital activity.

The company’s latest release, AgentKit, is designed to support agentic commerce by allowing websites to verify that AI agents are acting on behalf of authenticated users. As AI programs increasingly browse websites and make purchases autonomously, ID verification tools are becoming essential to prevent fraud, spam, and misuse.

AgentKit relies on World ID, a system that generates a secure digital identity through biometric verification. Users obtain a verified ID by scanning their iris using a dedicated device, which converts the scan into an encrypted digital code. These ID verification tools are then used to confirm that transactions initiated by AI agents are linked to a real and unique individual.

The system integrates with the x402 protocol, a blockchain-based standard developed by Coinbase and Cloudflare, enabling automated transactions between systems. By combining this protocol with ID verification tools, websites can validate whether a human user authorises an AI agent before completing a purchase.

‘AgentKit is built as a complementary extension to the x402 v2 protocol, in coordination with Coinbase,’ the company said. ‘The integration is designed so that any website already using x402 can enable proof of unique human verification alongside (or instead of) micropayments.’

According to the company, the approach functions similarly to delegating authority to an AI agent, allowing platforms to decide whether to trust automated actions. These ID verification tools provide a layer of accountability, helping ensure that AI-driven transactions remain secure and traceable.

AgentKit is currently available in beta, with developers encouraged to test and refine the system. However, access depends on users obtaining a verified World ID, reinforcing the central role of biometric-based ID verification tools in the company’s ecosystem.

As agentic commerce expands across platforms such as Amazon and Mastercard, the need for trusted identity systems is becoming more urgent. By positioning its ID verification tools at the centre of this emerging market, the company aims to establish itself as a key provider of trust infrastructure for AI-powered digital transactions.

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UK announces £2.5 billion investment in AI and quantum technologies

Plans to accelerate technological leadership have been outlined by the HM Treasury and the Department for Science, Innovation and Technology, with a £2.5 billion investment targeting AI and quantum computing.

Ambition has been reinforced by Rachel Reeves, who positioned AI as a central driver of economic growth, alongside closer European ties and regional development. Strategy aims to secure the fastest adoption of AI across the G7 while supporting domestic innovation ecosystems.

Significant funding in the UK will be directed towards a Sovereign AI initiative, quantum infrastructure and research capacity. Plans include procurement of large-scale quantum systems and targeted investment in startups, helping companies scale while strengthening national capabilities in advanced technologies.

Expectations surrounding quantum computing are framed as transformative, with potential to reshape industries from healthcare to energy. Combined investment reflects a broader effort to align innovation policy with long-term economic growth and global competitiveness.

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Anthropic dispute pushes Pentagon toward new AI providers

The Pentagon is accelerating efforts to replace Anthropic after the company was designated a supply-chain risk, marking a sharp shift in US defence AI strategy. The move follows a breakdown in talks over safeguards governing military use of AI, particularly around surveillance and autonomous weapons.

Cameron Stanley, the Pentagon’s chief digital and AI officer, said engineering work is underway to deploy alternative large language models in government-controlled environments. He indicated that while transitioning from Anthropic’s tools could take more than a month, new systems are expected to be operational soon.

The decision threatens a $200 million contract and could exclude Anthropic from future defence partnerships. The US administration has set a six-month timeline for federal agencies to shift away from the company, signalling a broader push to diversify AI suppliers and reduce dependency risks.

Rival providers are already stepping in. Op e nAI and xAI have been approved for classified work, while Google is introducing Gemini AI tools across the Pentagon workforce, initially on unclassified networks before expanding into sensitive environments.

Anthropic has challenged the designation in court, arguing it violates constitutional protections and could harm its business. Despite the legal dispute, defence officials have made clear they are moving forward with an ‘AI-first’ strategy to accelerate the adoption of advanced models across military operations.

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Memory chip shortage could last until 2030, SK chairman warns

Chey Tae-won warned that the global memory chip shortage could last for years, with structural supply constraints likely to continue into the next decade. Speaking on the sidelines of Nvidia GTC 2026 in San Jose, he said limited wafer capacity remains a key bottleneck for the semiconductor industry.

‘The shortage stems from a lack of wafer capacity, and securing additional wafers takes at least four to five years,’ Chey said. ‘We expect the industry-wide supply shortfall to persist at over 20 percent through 2030.’

He added that SK Hynix is implementing initiatives such as adjusting production schedules and diversifying supplier partnerships to stabilise prices. CEO Kwak Noh-jung is expected to provide further details on these new steps to manage volatility linked to the memory chip shortage.

Despite growing pressure to expand manufacturing overseas, Chey stressed that the group will prioritise domestic production to better respond to the ongoing memory chip shortage. ‘Building capacity outside Korea takes the same amount of time, regardless of location,’ he said. ‘Korea already has the infrastructure in place, allowing for a much faster response.’

He also highlighted the challenges of building fabrication plants abroad, including the need for reliable electricity and water supplies, as well as access to skilled engineering talent.

On competition in the high-bandwidth memory market, Chey noted that rising demand driven by artificial intelligence is reshaping supply dynamics. ‘AI requires graphics processing units (GPUs), and GPUs require HBM. We will do our best,’ he said, while cautioning that excessive focus on HBM could worsen the memory chip shortage for conventional DRAM used in smartphones and personal computers.

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UK launches major AI supercomputer for fusion research

The University of Cambridge has partnered with the UK Atomic Energy Authority and the Department for Energy Security and Net Zero to deploy a major AI supercomputer for fusion energy. The system, named ‘Sunrise’, is designed to accelerate research into clean and sustainable power.

Developed with support from Dell Technologies, AMD and StackHPC, the GPU-powered machine will operate at 1.4MW capacity. Project marks a significant step in strengthening the UK’s sovereign computing capabilities while supporting the Culham AI Growth Zone initiative.

Focus will centre on solving complex fusion challenges, including plasma turbulence, advanced materials, and fuel development. Advanced simulations and AI modelling are expected to play a key role in bringing fusion energy closer to commercial viability.

Plans aim to support the UK’s long-term goal of delivering fusion power to the national grid in the 2040s. Sunrise is scheduled to become operational in June, forming part of a broader national strategy to expand AI infrastructure and scientific innovation.

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