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Nvidia expands AI chip production in the US amid political pressure and global shifts

Nvidia is significantly ramping up its presence in the United States by commissioning over a million square feet of manufacturing space in Arizona and Texas to build and test its powerful AI chips. The tech giant has begun producing its Blackwell chips at TSMC facilities in Phoenix and is developing large-scale ‘supercomputer’ manufacturing plants in partnership with Foxconn in Houston and Wistron in Dallas.

The company projects mass production to begin within the next 12 to 15 months, with ambitions to manufacture up to half a trillion dollars’ worth of AI infrastructure in the US over the next four years. CEO Jensen Huang emphasised that this move marks the first time the core components of global AI infrastructure are being built domestically.

He cited growing global demand, supply chain resilience, and national security as key reasons for the shift. Nvidia’s decision follows an agreement with the Trump administration that helped the company avoid export restrictions on its H20 chip, a top-tier processor still eligible for export to China.

Nvidia joins a broader wave of AI industry leaders aligning with the Trump administration’s ‘America-first’ strategy. Companies like OpenAI and Microsoft have pledged massive investments in US-based AI infrastructure, hoping to secure political goodwill and avoid regulatory hurdles.

Trump has also reportedly pressured key suppliers like TSMC to expand American operations, threatening tariffs as high as 100% if they fail to comply. Despite the enthusiasm, Nvidia’s expansion faces headwinds.

A shortage of skilled workers and potential retaliation from China—particularly over raw material access—pose serious risks. Meanwhile, Trump’s recent moves to undermine the Chips Act, which provides critical funding for domestic chipmaking, have raised concerns about the long-term viability of US semiconductor investment.

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New AI tool helps spot cataracts in babies

A groundbreaking medical device designed to detect cataracts in newborns is being enhanced with the help of AI. The Neocam, a handheld digital imaging tool created by Addenbrooke’s eye surgeon, Dr Louise Allen, allows midwives to take photos of a baby’s eyes to spot congenital cataracts — the leading cause of preventable childhood blindness.

A new AI feature under development will instantly assess whether a photo is clear enough for diagnosis, streamlining the process and reducing the need for retakes. The improvements are being developed by Cambridgeshire-based consultancy 42 Technology (42T), whose software engineers train a machine-learning model using a vast dataset of 46,000 anonymised images.

The AI project is backed by an innovation grant from Addenbrooke’s Charitable Trust (ACT) to make Neocam more accurate and accessible, especially in areas with limited specialist care. Neocam is currently being trialled in maternity units across the UK as part of a large-scale study called DIvO, where over 140,000 babies will have their eyes screened using both traditional methods and the new device.

Although the final results are not expected until 2027, early findings suggest Neocam has already identified rare visual conditions that would have otherwise gone undetected. Dr Allen emphasised the importance of collaboration and public support for the project, saying that the AI-enhanced Neocam could make early detection of eye conditions more reliable worldwide.

Why does it matter?

With growing support from institutions like the National Institute for Health and Care Research and ACT, this innovation could significantly improve childhood eye care across both urban and remote settings.

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US exempts key electronics from China import taxes

Smartphones, computers, and key tech components have been granted exemption from the latest round of US tariffs, providing relief to American technology firms heavily reliant on Chinese manufacturing.

The decision, which includes products such as semiconductors, solar cells, and memory cards, marks the first major rollback in President Donald Trump’s trade war with China.

The exemptions, retroactively effective from 5 April, come amid concerns from US tech giants that consumer prices would soar.

Analysts say this move could be a turning point, especially for companies like Apple and Nvidia, which source most of their hardware from China. Industry reaction has been overwhelmingly positive, with suggestions that the policy shift could reshape global tech supply chains.

Despite easing tariffs on electronics, Trump has maintained a strict stance on Chinese trade, citing national security and economic independence.

The White House claims the reprieve gives firms time to shift manufacturing to the US. However, electronic goods will still face a separate 20% tariff due to China’s ties to fentanyl-related trade. Meanwhile, Trump insists high tariffs are essential leverage to renegotiate fairer global trade terms.

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ChatGPT hits 800 million users after viral surge

ChatGPT’s user base has doubled in recent weeks, with OpenAI CEO Sam Altman estimating up to 800 million people now use the platform weekly.

Speaking at TED 2025, Altman confirmed the surge during an on-stage conversation, acknowledging the figure after being pressed by TED curator Chris Anderson. He suggested the user growth was accelerating rapidly, describing the adoption as covering around 10% of the global population.

The platform’s popularity has soared thanks to viral new features, including a March update that introduced Ghibli mode—an image and video generator inspired by the animation style of Studio Ghibli.

Altman noted that this single feature drew in a million users within an hour of launch. When asked about artist compensation, he said OpenAI may eventually offer automatic payments to creators whose styles are used in prompts, though safeguards remain in place to avoid generating copyrighted material.

Other major updates include the rollout of a memory function that allows ChatGPT to remember user interactions indefinitely, making it a more personalised assistant over time. Altman also spoke about the development of autonomous AI agents capable of acting on users’ behalf, framed with safety guardrails.

While acknowledging fears of AI replacing human jobs, he encouraged a view of AI as a tool to unlock greater capabilities rather than a threat to livelihoods.

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Creators get AI-made background music on YouTube

YouTube has introduced a new AI-powered tool that creates free background music for video creators, helping them avoid copyright issues. The feature, known as Music Assistant, was showcased on YouTube’s Creator Insider channel and is designed to match music to a video’s tone using simple text prompts.

Users can enter descriptions such as ‘uplifting and motivational music for a workout montage’, and the tool will generate several suitable tracks for review and download. Music Assistant is currently available within YouTube’s Creator Music beta section and is being rolled out gradually to those with access.

YouTube’s move follows broader industry trends, with companies like Stability AI and Meta also developing similar music-generating technologies.

The platform has already been experimenting with AI music through features like Dream Track and a music remixer for Shorts, allowing further creative flexibility for users.

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ChatGPT gets infinite memory upgrade

OpenAI is introducing a major upgrade to ChatGPT’s memory capabilities, allowing the AI to retain all previous conversations indefinitely. CEO Sam Altman described the development as a step toward making ChatGPT a more personalised assistant that better adapts to users over time.

Previous versions of the AI could only remember chats from the past few weeks, which helped with ongoing projects and stylistic consistency.

The new update goes much further, enabling ChatGPT to recall details from all prior conversations and use them to offer more tailored support, such as giving lifestyle advice or acting as a personal coach.

The feature will initially roll out to ChatGPT Plus and Pro subscribers, with broader availability likely in the future. However, the move has sparked some concerns around privacy, as the AI’s enhanced recall could allow anyone with account access to uncover personal details with a simple prompt.

Users may wish to take precautions, such as setting up custom instructions to limit the disclosure of sensitive information.

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UAE experts warn on AI privacy risks in art apps

A surge in AI applications transforming selfies into Studio Ghibli-style artwork has captivated social media, but UAE cybersecurity experts are raising concerns over privacy and data misuse.

Dr Mohamed Al Kuwaiti, Head of Cybersecurity for the UAE Government, warned that engaging with unofficial apps could lead to breaches or leaks of personal data. He emphasised that while AI’s benefits are clear, users must understand how their personal data is handled by these platforms.

He called for strong cybersecurity standards across all digital platforms, urging individuals to be more cautious with their data.

Media professionals are also sounding alarms. Adel Al-Rashed, an Emirati journalist, cautioned that free apps often mimic trusted platforms but could exploit user data. He advised users to stick to verified applications, noting that paid services, like ChatGPT’s Pro edition, offer stronger privacy protections.

While acknowledging the risks, social media influencer Ibrahim Al-Thahli highlighted the excitement AI brings to creative expression. He urged users to focus on education and safe engagement with the technology, underscoring the UAE’s goal to build a resilient digital economy.

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AI transforms global healthcare with major growth ahead

The healthcare sector is poised for significant growth as AI continues to revolutionise the industry. A new report from Avant Technologies predicts an influx of AI-powered solutions in healthcare, with key technology giants leading the charge.

Avant Technologies and Ainnova, in their joint venture, plan to showcase their AI-powered Vision AI platform at the 2025 Mexico Healthcare Innovation Summit.

The platform, aimed at early disease detection, is nearing approval from the US Food and Drug Administration (FDA) and is already in clinical trials in Southeast Asia and South America.

Apple and Amazon are also entering the AI healthcare space, with Apple launching an AI-powered health coach to guide users on diet and exercise, while Amazon is expanding its AI solutions with a healthcare chatbot.

Meanwhile, GE Healthcare has seen success with its AI-driven cardiac imaging, which has garnered FDA approval. The World Health Organization (WHO) supports AI integration in healthcare, particularly for outpatient care and early diagnosis, though it has urged regulators to be cautious of potential risks.

AI in healthcare is expected to grow exponentially, reaching a market valuation of $613 billion by 2034. The sector’s rapid expansion is driven by increasing adoption rates, particularly for early disease detection, administrative efficiency, and personalised medicine.

Despite data privacy concerns, the adoption of AI tools in fields like dermatology, oncology, and cardiovascular health is expected to surge. North America is predicted to lead the market, followed by Europe and South Asia, as more healthcare institutions embrace AI technologies.

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Lenovo unveils compact edge AI server

Lenovo has introduced the ThinkEdge SE100, a compact AI inferencing server aimed at bringing edge AI within reach for businesses of all sizes.

Rather than relying on large data centres for processing, this server is designed to operate on-site in space-constrained environments, allowing data to be processed locally instead of being sent to the cloud.

The SE100 supports hybrid cloud deployments and is part of Lenovo’s new ThinkSystem V4 family. While the V4 systems are built for AI training, the SE100 is intended for inferencing, which is less demanding and doesn’t require power-hungry GPUs.

Lenovo says the unit is 85% smaller than a typical 1U server and draws under 140W, even with GPU configurations.

Engineered to be both energy-efficient and quiet, the SE100 uses Neptune liquid cooling instead of traditional fans, making it suitable for public spaces. Its design also helps extend system health and lifespan by reducing air flow needs and lowering operating temperatures.

Lenovo’s vice president of infrastructure products, Scott Tease, stated the SE100 is a cost-effective solution that simplifies AI deployment at the edge.

Its flexible design adapts to diverse business needs, offering low-latency, high-performance inferencing without the complexity or expense of full-scale AI infrastructure.

For more information on these topics, visit diplomacy.edu.

Meta faces landmark antitrust trial

An antitrust trial against Meta commenced in Washington, with the US Federal Trade Commission (FTC) arguing that the company’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were designed to crush competition instead of fostering innovation.

Although the FTC initially approved these deals, it now claims they effectively handed Meta a monopoly. Should the FTC succeed, Meta may be forced to sell off both platforms, a move that would reshape the tech landscape.

Meta has countered by asserting that users have benefited from Instagram’s development under its ownership, instead of being harmed by diminished competition. Legal experts believe the company will focus on consumer outcomes rather than corporate intent.

Nevertheless, statements made by Meta CEO Mark Zuckerberg, such as his remark that it’s ‘better to buy than to compete,’ may prove pivotal. Zuckerberg and former COO Sheryl Sandberg are both expected to testify during the trial, which could span several weeks in the US.

Political tensions loom over the case, which was first launched under Donald Trump’s presidency. Reports suggest Zuckerberg has privately lobbied Trump to drop the lawsuit, while Meta has criticised the FTC’s reversal years after approving the acquisitions.

The recent dismissal of two Democratic commissioners from the FTC by Trump has raised concerns over political interference, especially as the commission now holds a Republican majority.

While the FTC seeks to challenge Meta’s dominance, experts caution that proving harm in this case will be far more difficult than in the ongoing antitrust battle against Google.

Unlike the search engine market, which is clearly monopolised, the social media space remains highly competitive, with platforms like TikTok, YouTube and X offering strong alternatives.

For more information on these topics, visit diplomacy.edu.