Baidu, China’s tech giant, is set to unveil the next version of its AI model, Ernie 5, in the second half of 2025. This new iteration will introduce multimodal capabilities, allowing it to process and convert a variety of formats such as text, video, images, and audio, offering significant advancements in AI technology.
The release is timed to respond to increasing competition in China’s rapidly developing AI sector, particularly from the startup DeepSeek. The company has gained attention with a reasoning model that rivals OpenAI’s GPT while offering lower costs. Despite being one of the first to enter the AI space in China after the debut of ChatGPT in 2022, Baidu has faced challenges in gaining widespread adoption of its Ernie model.
Baidu’s AI offerings have struggled to keep pace with competitors like ByteDance’s Doubao chatbot and DeepSeek in terms of user uptake. The company maintains that its latest version, Ernie 4, is comparable to OpenAI’s GPT-4, but the adoption rate has been slower than anticipated. CEO Robin Li acknowledged the unpredictable nature of innovation, noting DeepSeek’s rise as a reminder that the future of AI is uncertain and can emerge from unexpected places.
Li also stressed the importance of continued investment in data centres and cloud infrastructure to keep up with the evolving demands of AI, even as newer models, such as DeepSeek’s, challenge the cost-efficiency of large AI models.
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Lam Research, a leading US-based chip toolmaker, has announced plans to invest over 100 billion rupees ($1.2 billion) in Karnataka, India. The company has signed a memorandum of understanding with the Karnataka Industrial Area Development Board to facilitate the investment, which was revealed during the ‘Invest Karnataka’ event.
The initiative aligns with India’s efforts to strengthen its semiconductor ecosystem. Prime Minister Narendra Modi’s government has introduced a $10 billion incentive programme to attract global chip firms. With semiconductor market projected to reach $63 billion by 2026 in India, the country is emerging as a significant player in the global semiconductor race.
Karnataka, home to Bengaluru, serves as a critical driver of India’s economy. Known for its contributions to IT services, software, and manufacturing exports, the state is increasingly positioning itself as a hub for high-tech investments.
India’s IT minister hailed Lam Research’s investment as a major step in the nation’s semiconductor ambitions. The announcement reflects growing confidence in the government’s vision for a robust and competitive semiconductor industry.
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Salesforce has announced plans to invest $500 million in AI initiatives in Saudi Arabia as global competition for AI investment intensifies. The company will introduce Hyperforce, its cloud platform architecture developed in partnership with Amazon Web Services, to the country. The investment was revealed at LEAP 2025, Saudi Arabia’s major global tech event, which secured nearly $15 billion in new AI-related investments.
As part of the initiative, Salesforce will collaborate with major firms, including Capgemini, Deloitte, IBM, and PwC, to expand the use of its AI-driven customer service platform, Agentforce. Additionally, it will introduce Arabic language support for its AI product suite, making its technology more accessible in the region.
Salesforce recently announced plans to establish a regional headquarters in Riyadh, aligning with Saudi Arabia‘s broader push to become a major player in the AI sector. The company has also committed to upskilling 30,000 Saudi citizens by 2030, reflecting its long-term commitment to developing AI talent in the region.
EDF has announced the selection of four sites on its land for data centres as it seeks to accelerate investment in energy-intensive digital infrastructure. The state-owned utility made the announcement during France’s AI summit, where political and business leaders are discussing developments in artificial intelligence. With its extensive nuclear energy capacity, France is positioning itself as a reliable and clean power source for data centres.
The identified sites have existing grid connections with a combined estimated power capacity of 2 gigawatts. EDF is also searching for two additional locations to expand its infrastructure further. The company plans to offer tailored support to digital firms looking to develop projects, ensuring smoother implementation of new data centres.
EDF has previously been in talks with companies to power large-scale data centres in France. However, concerns remain over potential delays due to grid connection challenges. The initiative reflects France’s broader strategy to attract AI and digital investments while leveraging its nuclear energy resources to meet rising demand.
Saudi Arabia’s NEOM has signed an agreement with DataVolt to develop a 1.5-gigawatt net-zero AI project in its Oxagon industrial zone. The first phase will see an investment of $5 billion, with operations expected to begin in 2028. The initiative aims to position the kingdom as a leading AI hub in the region, competing with the United Arab Emirates and Qatar amid soaring demand for generative AI technology.
The Saudi government has been actively pursuing AI development, with plans for a $40 billion fund in collaboration with foreign partners. The governor of Saudi Arabia’s Public Investment Fund, Yasir Al-Rumayyan, has promoted the country as a potential global AI centre, citing its abundant energy resources and financial capacity. NEOM, a development nearly the size of Belgium, is a key part of the kingdom’s Vision 2030 strategy to diversify its economy beyond oil.
Oxagon is set to become an industrial city powered entirely by renewable energy, aligning with NEOM’s sustainability goals. However, the kingdom has scaled back some of its more ambitious projects to prioritise infrastructure essential for hosting major global events. Rising costs have influenced these adjustments, but AI remains a critical part of Saudi Arabia‘s long-term economic transformation.
China has expressed its willingness to share advancements in artificial intelligence with the world, emphasising the importance of international collaboration. Speaking at an AI summit in Paris, Vice Premier Zhang Guoqing stated that China aims to safeguard security in the field while building ‘a community with a shared future for mankind,’ a key principle of President Xi Jinping’s foreign policy.
The statement highlights China’s push for deeper global partnerships in emerging technologies amid growing competition and regulatory scrutiny. AI has become a focal point in international relations, with nations balancing innovation with security concerns. Zhang’s comments suggest China is positioning itself as a cooperative player in shaping AI’s future.
As AI continues to reshape industries and societies, China’s call for collaboration signals its intent to engage with global stakeholders. Whether these efforts will lead to concrete partnerships remains to be seen, but the message from Beijing is clear: China is open to working with the world on artificial intelligence.
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AI chip startup Positron has raised $23.5 million in a bid to compete with industry leader Nvidia. The Reno-based company, which manufactures its chips in Arizona, claims its processors consume less than a third of the power of Nvidia’s high-performance H100 chips while maintaining similar capabilities. Investors in the funding round included Valor Equity Partners, Atreides Management, and Flume Ventures.
Positron’s chips are designed for AI inference, the stage where trained AI models are used rather than developed. While demand is currently higher for training chips, analysts predict that inference chips could soon become the more sought-after option as AI applications expand. This shift has led major players such as OpenAI, Google, and Meta to invest heavily in AI infrastructure, with spending expected to reach tens of billions of dollars this year.
Although Nvidia dominates roughly 80% of the AI chip market, rising costs and concerns over reliance on a single supplier have pushed major tech firms to seek alternatives. With its latest funding, Positron positions itself as a strong contender in the growing US and global AI chip industry, offering a more energy-efficient option for future AI applications.
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Foxconn, the world’s largest contract electronics manufacturer and Apple’s main iPhone maker, is prepared to adjust its production strategies in response to new US tariffs. Chairman Young Liu stated that the company is capable of planning its manufacturing around these changes, particularly with US President Donald Trump’s recently announced 25% tariff on all imports from Mexico and Canada, which has been paused until March 4.
Liu explained that Foxconn operates factories in both the United States and Mexico and will adjust production capacities based on the impact of the tariffs. He emphasised that Foxconn has the flexibility to move its operations between countries, minimising the overall effect of the tariffs on the company. However, Liu also warned that such tariffs are detrimental to the global economy, potentially shrinking markets.
Foxconn remains committed to working with US partners to align its manufacturing strategies with President Trump’s push for more domestic production. Despite the uncertainty around the tariffs, the company is prepared to adapt as necessary.
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World Liberty Financial (WLF), a new crypto platform in which President Donald Trump holds a financial stake, announced the launch of a strategic token reserve aimed at supporting Bitcoin, Ethereum, and other leading cryptocurrencies. The reserve is designed to help mitigate market volatility, support decentralised finance projects, and create a robust capital reserve for future investments. WLF also plans to seek partnerships with financial institutions to contribute tokenised assets to its reserve.
This announcement reflects the growing involvement of Trump and his family in the cryptocurrency world. In addition to WLF, the Trump family has a majority stake in Trump Media & Technology Group, a company recently pivoting into crypto-linked financial services. Trump’s ventures also include the $Trump meme coin, which has already generated significant revenue. With token sales reaching $500 million, WLF has made a strong entry into the market just months ahead of the US presidential election.
WLF’s launch is strategically timed to coincide with the increasing interest in bridging the gap between traditional finance and the crypto world. Donald Trump Jr. recently spoke at the Ondo Summit in New York, where he emphasised the importance of a regulatory framework to allow crypto to thrive. He described crypto as the ‘future of finance’ and a key component of maintaining American dominance in global finance. Trump and his affiliates hold a significant stake in WLF, with 60% ownership of the holding company and a large share of its revenues.
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France has positioned itself as a major player in artificial intelligence, attracting over €100 billion in investment, thanks in part to its reliable nuclear energy. At the AI Action Summit in Paris, President Emmanuel Macron highlighted the country’s clean power supply as a key advantage in luring tech firms. Among recent investments is a $10 billion supercomputer project by UK-based Fluidstack, expected to require 1 gigawatt of electricity, equivalent to one of France’s smaller nuclear reactors.
However, experts warn that delays in connecting power-hungry data centres to the grid could hinder progress. While data centres can be built in under a year, constructing the necessary transmission lines often takes five years due to permitting and public consultation requirements. The United States is seen as having a clear advantage in fast-tracking infrastructure development.
In response, state-owned utility EDF has designated four sites with pre-existing grid connections, potentially cutting project timelines by several years. While these efforts may help, the challenge of scaling infrastructure remains a significant obstacle to France’s AI ambitions.
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