The Coalition for Open Digital Ecosystems (CODE), a collaborative industry initiative launched in late 2023 by tech giants like Meta, Google and Qualcomm, held its first public event in Brussels advocating for open digital ecosystems to stimulate growth, foster innovation, and empower consumers, particularly within the challenging global context of the EU’s economy. The event hosted a high-level panel discussion with representatives from Meta, BEUC, the European Parliament and Copenhagen Business School.
Qualcomm CEO Cristiano Amon gave an interview to Euractiv where he emphasised CODE’s three key elements of openness – seamless connectivity and interoperability, consumer choice, an an environment of open access. These elements aim to enhance user experience, maintain data access, and provide fair access to digital tools for developers, particularly smaller companies and startups. Amon highlighted the importance of interoperability and fair access for developers, especially as platforms evolve and become more relevant for various devices, including cars. He also stressed the need to provide fair access for smaller companies with new ideas to participate and reach customers in a competitive environment.
He said that Qualcomm is focused on developing computing engines, such as the Neural Processing Unit (NPU), which is designed to run all the time and handle multiple models. This development aims to add computing capability to various devices while addressing the challenge of integrating this new engine into devices without compromising battery life. Amon also expressed a positive view of the EU’s Digital Markets Act (DMA), applauding the European regulatory leadership for their focus on the importance of open and interoperable platforms.
Why does it matter?
The panel discussion envisioned a positive scenario for the European digital agenda, highlighting the importance of openness, interoperability, and collaboration for consumers, businesses, and innovation. CODE’s emergence as a new stakeholder in the Brussels digital, tech, and competition policy space highlights the growing recognition of the importance of open digital ecosystems in fostering growth, innovation, and consumer empowerment within the EU’s digital landscape.
China has unveiled an AI chatbot based on principles derived from President Xi Jinping’s political ideology. The chatbot, named ‘Xue Xi’, aims to propagate ‘Xi Jinping Thought’ through conversational interactions with users. Xi Jinping Thought, also known as ‘Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era‘, is made up of 14 principles, including ensuring the absolute power of the Chinese Communist Party, strengthening national security and socialist values, as well as improving people’s livelihoods and well-being.
Developed by a team at Tsinghua University, ‘Xue Xi’ utilises natural language processing to engage users in discussions about Xi Jinping’s ideas on governance, socialism with Chinese characteristics, and national rejuvenation. The chatbot was trained on seven databases, six of which were mostly related to information technologies provided by China’s internet watchdog and the Cyberspace Administration of China (CAC).
The chatbot’s creation is the latest effort of a broader strategy to spread the Chinese leader’s ideology and an attempt to leverage technology, strengthen ideological education and promote ideological loyalty among citizens. Students have had to take classes on Xi Jinping’s Thoughts in schools, and an app called Study Xi Strong Nation was also rolled out in 2019 to allow users to learn and take quizzes about his ideologies.
Why Does It Matter?
The launch of Xue Xi raises important questions about the intersection of AI technology and political ideology. It represents China’s innovative approach to using AI for ideological dissemination, aiming to ensure widespread adherence to Xi Jinping Thought. By deploying AI in this manner, China advances its technological capabilities and seeks to shape public discourse and reinforce state-approved narratives. Critics argue that such initiatives could exacerbate issues related to censorship and surveillance, potentially limiting freedom of expression and promoting conformity to government viewpoints. Moreover, the development of ‘Xue Xi’ underscores China’s broader ambition to lead in AI development, positioning itself as a pioneer in using technology for ideological governance.
Despite the ongoing conflict with Hamas in Gaza, Israel’s high-tech sector now contributes 20% to the country’s economic output, according to the Israel Innovation Authority (IIA). In 2023, 600 new startups were launched, and tech firms raised $8 billion, a 55% decrease from 2022. Israel has around 9,200 tech firms employing 400,000 people. It remains the country’s main growth driver, accounting for 53% of total exports.
To continue supporting tech growth, the IAA’s chief executive told Reuters that the government needs to increase investment in the sector, given Israel’s limited natural resources. Innovation, Science and Technology Minister echoed this sentiment and stressed the importance of innovation as Israel’s ‘most important resource’.
Cybersecurity and fintech are the leading sectors for investment, with climate tech also gaining traction. IIA also noted that around 8% of tech workers were called into army reserve duty, and many volunteered. The authority predicts a surge in new startups due to recent connections and insights into civilian and defense needs from the conflict.
Why does it matter?
The IIA’s call is well justified. Despite foreign investors remaining active due to attractive valuations of Israeli companies, the tech sector has not been immune to the Israel-Hamas conflict. A survey by the Israel Advanced Technology Industries revealed that 65% of venture capital funds faced operational challenges due to their Israeli identity, and over 30% of Israeli companies and startups have relocated significant activities abroad.
According to a draft of this year’s long-term economic policy plan, Japan is considering new legislation to support the commercial production of advanced semiconductors. The plan, set to be finalised around 21 June, aims to strengthen the chip supply chain by promoting domestic production, enhancing human resources, and boosting research and development in collaboration with international partners.
The draft emphasises the need for legislative measures to facilitate the mass production of next-generation semiconductors. Recently, the industry ministry highlighted the necessity of a new regulatory framework to support the chip foundry venture Rapidus, which aims to begin mass production of cutting-edge chips by 2027. Tokyo has already agreed to provide up to 920 billion yen ($5.94 billion) in subsidies for Rapidus, focusing on research and development.
However, additional support, such as government guarantees, will be required for mass production to attract investment. Rapidus, led by industry veterans, plans to produce these advanced chips on Hokkaido island in collaboration with IBM and research organisation Imec from Belgium, marking a significant step in Japan’s efforts to revive its semiconductor industry.
AI is making significant strides in the healthcare sector, with Chinese researchers developing an AI hospital town that promises to revolutionise medical training and treatment. Dubbed ‘Agent Hospital’, this virtual environment, created by Tsinghua University researchers, features a large language model (LLM)-powered intelligent agents that act as doctors, nurses, and patients, all capable of autonomous interaction. These AI agents can treat thousands of patients quickly, achieving a 93.06% accuracy rate on medical exams. This innovative approach aims to enhance the training of medical professionals by allowing them to practice in a risk-free, simulated environment.
The AI hospital town not only offers advanced training opportunities for medical students but also has the potential to transform real-world healthcare delivery. The AI hospital can provide valuable insights and predictions by simulating various medical scenarios, including the spread of infectious diseases. The system utilises a vast repository of medical knowledge, enabling AI doctors to handle numerous cases efficiently and accurately, paving the way for high-quality, affordable, and convenient healthcare services.
While the future of AI in healthcare appears promising, significant challenges remain in implementing and promoting AI-driven medical solutions. Ensuring strict adherence to medical regulations, validating technological maturity, and developing effective AI-human collaboration mechanisms are essential to mitigate risks to public health. Experts emphasise that despite the impressive capabilities of AI, it can only partially replace the human touch in medicine. Personalised care, compassion, and legal responsibilities are aspects that AI cannot replicate, highlighting the indispensable role of human doctors in healthcare.
The European Commission has given the green light to Italian state aid for semiconductor manufacturer STMicroelectronics to construct a €5 billion microchip plant in Sicily. This approval comes as Europe seeks to reduce dependence on Asian imports for critical manufacturing components. The plant in Catania will specialise in producing microchips that enhance energy efficiency in electric vehicles and will receive a direct grant of about €2 billion from Rome.
The move comes amidst heightened scrutiny of Europe’s reliance on Asian chip supplies due to pandemic-related disruptions and trade tensions with China. To address these concerns, the EU has introduced its Chips Act, aiming to attract chip manufacturers and secure vital components for hi-tech industries. European antitrust chief Margrethe Vestager emphasised the strategic importance of diversifying chip supply chains and reducing dependencies on single suppliers.
As major shareholders in STMicro, the governments of France and Italy are backing the project. The new plant, STMicro’s second facility in Sicily, will produce silicon carbide chips known for their energy efficiency. This initiative signals a shift towards self-sufficiency in semiconductor production and supports Europe’s digital and green transition objectives. With operations expected to reach full capacity by 2032, the plant aims to bolster regional security of chip supply and meet the growing demand from automakers like Tesla, BMW, and Renault.
A Chinese nonprofit organisation linked to the government is reportedly coordinating efforts among major tech firms in China to develop open-source software with potential military applications, according to a report from the Jamestown Foundation, a US-based defence policy group. The OpenAtom Foundation oversees the development of open-source operating systems, including OpenHarmony, a variant of Huawei’s Harmony OS that was developed after the company faced US sanctions.
OpenAtom’s efforts extend beyond civilian use, with initiatives to develop alternatives to US technologies for defence applications, such as satellite systems. The foundation led the adaptation of OpenHarmony for Chinese satellites, which was launched in the previous year and is capable of capturing high-resolution images at a low cost.
Sunny Cheung from the Jamestown Foundation highlights OpenAtom’s pivotal role in China’s strategy for technological self-reliance, noting that many of its leaders have ties to the Chinese Ministry of Industry and Information Technology, and a significant portion of its staff are affiliated with the Chinese Communist Party. However, China’s foreign ministry declined to comment on these allegations.
While most of OpenAtom’s sponsors are Chinese firms like Alibaba and Tencent, US chipmaker Intel is also involved. Intel emphasised its commitment to fostering an open ecosystem strategy globally. The Jamestown Foundation suggests that the US should consider promoting its own open-source software initiatives to prevent China from gaining an advantage in this domain, which has largely been left to the private sector until now.
Indonesia’s President Joko Widodo has mandated a halt on the development of new government mobile applications, aiming to streamline and integrate the existing 27,000 apps managed by various ministries and regional administrations. This directive is part of a broader initiative to enhance public service efficiency and reduce bureaucratic complexities. Widodo highlighted the redundancy of creating new applications with each change in leadership and emphasised the importance of simplifying public service access.
At the launch of INA Digital, a platform designed to consolidate these services, Widodo noted that this integration could save significant government funds previously allocated for new app development. The INA Digital initiative is not a new application but a system intended to unify access to various government services through a single sign-in process. Although users will still need different apps for specific services, the integration aims to ease the overall user experience.
Minister of State Apparatus Utilisation and Bureaucratic Reform Abdullah Azwar Anas mentioned that INA Digital would integrate services from at least 15 ministries by September. The development of this super application is spearheaded by 400 local digital talents under GovTech Indonesia, led by Perum Peruri, in collaboration with various government entities. The project is expected to be available to the public within four months following its trial phase.
The initiative is part of a strategic move to improve digital governance and public service delivery in Indonesia, addressing efficiency and cybersecurity concerns. The country has faced significant cybersecurity threats, with a notable breach of the General Elections Commission’s database in November 2023, underscoring the urgent need for robust digital infrastructure.
Google will invest $2 billion to establish its first data centre and Google Cloud region in Malaysia, marking a significant expansion into Southeast Asia. This investment will be located in Sime Darby Property’s Elmina Business Park in central Selangor. It aims to advance Malaysia’s digital ambitions, offering AI capabilities and other advanced technologies to enhance the local industry’s global competitiveness.
The new data centre will support services like Search, Maps, and Workspace, while the cloud centre will cater to local businesses and public sector organisations. Google’s Chief Financial Officer, Ruth Porat, emphasised the partnership’s role in fostering an ecosystem for innovation and driving digital transformation in Malaysia. This collaboration builds on a previous agreement announced last November between the Malaysian government and Google to accelerate domestic innovation.
The move is part of a broader trend of global tech giants’ significant investments in Southeast Asia. Microsoft has committed $2.2 billion to cloud services in Malaysia and $1.7 billion in Indonesia. Additionally, Malaysian conglomerate YTL is partnering with Nvidia in a $4.3 billion AI infrastructure project, while Amazon plans to invest $9 billion in Singapore, $5 billion in Thailand, and $6 billion in Malaysia.
India is ramping up its efforts in the field of AI, not only for commercial purposes but also for military applications, as it seeks to keep pace with its regional rival, China. A report by the Delhi Policy Group highlighted India’s annual spending on AI, estimated at around $50 million, which is dwarfed by China’s investment, surpassing 30 times that amount. Recognising the strategic importance of AI, India aims to bolster its indigenous AI capabilities to bolster its defence capabilities.
The Indian military has been actively exploring AI applications, including the recent launch of a robotic buddy designed to carry out tasks such as surveillance and supporting soldiers in rugged terrains. The Signals Technology Evaluation and Adaptation Group (STEAG) also spearheads research into AI and other emerging technologies to enhance modern warfare capabilities. India’s collaboration with the US on AI development further underscores its commitment to leveraging cutting-edge technology for defence purposes.
Why does it matter?
AI holds significant potential for enhancing military intelligence, training, and education, offering insights into real-time simulations and exercises. However, concerns remain about AI technology’s ethical implications and potential misuse, including the proliferation of deepfakes and disinformation campaigns. While India boasts a strong civilian AI sector, it faces stiff competition from China’s well-funded and centralised military AI system.
As AI technology continues to evolve, India aims to play a leading role in shaping the ethical and legal frameworks governing its use in warfare and society at large. With ongoing research and investment in AI, India seeks to ensure that its military remains at the forefront of technological innovation, positioning itself as a key player in the future landscape of high-tech warfare.
