Digital twins gain momentum through AI

AI is accelerating the creation of digital twins by reducing the time and labour required to build complex models. Consulting firm McKinsey says specialised virtual replicas can take six months or more to develop, but generative AI tools can now automate much of the coding process.

McKinsey analysts say AI can structure inputs and synthesise outputs for these simulations, while the models provide safe testing environments for AI systems. Together, the technologies can reduce costs, shorten development cycles, and accelerate deployment.

Quantum Elements, a startup backed by QNDL Participations and the USC Viterbi School of Engineering, is applying this approach to quantum computing. Its Constellation platform combines AI agents, natural language tools, and simulation software.

The company says quantum systems are hard to model because qubits behave differently across hardware types such as superconducting circuits, trapped ions, and photonics. These variations affect stability, error rates, and performance.

By using digital twins, developers can test algorithms, simulate noise, and evaluate error correction without building physical hardware. Quantum Elements says this can cut testing time from months to minutes.

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Taiwan aims to train 500,000 AI professionals

Taiwan aims to train 500,000 AI professionals by 2040, backed by a NT$100 billion (US$31.6 billion) government venture fund. President Lai Ching-te announced the 2026 AI talent forum in Taipei.

The government’s 10-year AI plan includes a national computing centre and the development of technologies such as silicon photonics, quantum computing, and robotics. President Lai said that national competitiveness depends on both chipmaking and citizens’ ability to utilise AI across various disciplines.

To achieve these goals, AI training courses are being introduced for public sector employees, and students are being encouraged to acquire AI skills. The initiative aims to foster cooperation between government, industry, and academia to drive economic transformation.

With a larger pool of AI professionals, Taiwan hopes to help small and medium-sized enterprises accelerate digital upgrades, enhance innovation, and strengthen the nation’s global competitiveness in emerging technologies.

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UK considers regulatory action after Grok’s deepfake images on X

UK Prime Minister Keir Starmer is consulting Canada and Australia on a coordinated response to concerns surrounding social media platform X, after its AI assistant Grok was used to generate sexualised deepfake images of women and children.

The discussions focus on shared regulatory approaches rather than immediate bans.

X acknowledged weaknesses in its AI safeguards and limited image generation to paying users. Lawmakers in several countries have stated that further regulatory scrutiny may be required, while Canada has clarified that no prohibition is currently under consideration, despite concerns over platform responsibility.

In the UK, media regulator Ofcom is examining potential breaches of online safety obligations. Technology secretary Liz Kendall confirmed that enforcement mechanisms remain available if legal requirements are not met.

Australian Prime Minister Anthony Albanese also raised broader concerns about social responsibility in the use of generative AI.

X owner Elon Musk rejected accusations of non-compliance, describing potential restrictions as censorship and suppression of free speech.

European authorities requested the preservation of internal records for possible investigations, while Indonesia and Malaysia have already blocked access to the platform.

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Indonesia and Malaysia restrict access to Grok AI over content safeguards

Malaysia and Indonesia have restricted access to Grok, the AI chatbot available through the X platform, following concerns about its image generation capabilities.

Authorities said the tool had been used to create manipulated images depicting real individuals in sexually explicit contexts.

Regulatory bodies in Malaysia and Indonesia stated that the decision was based on the absence of sufficient safeguards to prevent misuse.

Requests for additional risk mitigation measures were communicated to the platform operator, with access expected to remain limited until further protections are introduced.

The move has drawn attention from regulators in other regions, where online safety frameworks allow intervention when digital services fail to address harmful content. Discussions have focused on platform responsibility, content moderation standards, and compliance with existing legal obligations.

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Instagram responds to claims of user data exposure

Reports published by cybersecurity researchers indicated that data linked to approximately 17.5 million Instagram accounts has been offered for sale on underground forums.

The dataset reportedly includes usernames, contact details and physical address information, raising broader concerns around digital privacy and data aggregation.

A few hours later, Instagram responded by stating that no breach of internal systems occurred. According to the company, some users received password reset emails after an external party abused a feature that has since been addressed.

The platform said affected accounts remained secure, with no unauthorised access recorded.

Security analysts have noted that risks arise when online identifiers are combined with external datasets, rather than originating from a single platform.

Such aggregation can increase exposure to targeted fraud, impersonation and harassment, reinforcing the importance of cautious digital security practices across social media ecosystems.

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OpenAI and SoftBank back a $1 billion AI data centre energy partnership

SoftBank Group and OpenAI announced a strategic partnership with SB Energy, involving a combined investment of $1 billion to support the development of large-scale AI data centres and energy infrastructure in the US.

The agreement forms part of the broader Stargate initiative, which aims to expand domestic AI computing capacity.

As part of the arrangement, OpenAI signed a lease for a 1.2 gigawatt data centre project in Milam County, Texas, with SB Energy selected to develop and operate the facility.

The partners stated that the project is designed to support the rising demand for AI computing while minimising water usage and enhancing local energy supply.

SB Energy also secured an additional $800 million in redeemable preferred equity from Ares, strengthening its financial position for further expansion.

The companies stated that the collaboration is expected to generate construction employment, long-term operational roles and investment in grid modernisation, while establishing a scalable model for future AI-focused data centre developments.

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Meta backs US nuclear projects for AI growth

A series of agreements has been announced by Meta to support nuclear energy projects in the US, aiming to secure up to 6.6 gigawatts of clean and reliable electricity for data centres and AI infrastructure by 2035. The company said the move supports grid stability while reinforcing domestic energy capacity.

The agreements include support for existing nuclear facilities operated by Vistra in Ohio and Pennsylvania, as well as commitments to advanced reactor developers TerraPower and Oklo.

Meta stated that the arrangements are intended to extend the operational life of current plants while accelerating the deployment of next-generation nuclear technologies.

According to Meta, the projects are expected to generate thousands of construction roles and hundreds of long-term operational jobs, while contributing to the firm’s power to regional electricity grids.

The company added that energy costs associated with its data centres are fully covered through corporate agreements, instead of being passed on to US consumers.

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Tether and UN join to boost digital security in Africa

Tether has joined the UN Office on Drugs and Crime to enhance cybersecurity and digital asset education across Africa. The collaboration aims to reduce vulnerabilities to cybercrime and safeguard communities against online scams and fraud.

Africa, emerging as the third-fastest-growing crypto region, faces increasing threats from digital asset fraud. A recent Interpol operation uncovered $260 million in illicit crypto and fiat across Africa, highlighting the urgent need for stronger digital security.

The partnership includes several key initiatives. In Senegal, youth will participate in a multi-phase cybersecurity education programme featuring boot camps, mentorship, and micro-grants to support innovative projects.

Civil society organisations across Africa will receive funding to support human trafficking victims in Nigeria, DRC, Malawi, Ethiopia, and Uganda. In Papua New Guinea, universities will host competitions to promote financial inclusion and prevent digital asset fraud using blockchain solutions.

Tether and UNODC aim to create secure digital ecosystems, boost economic opportunities, and equip communities to prevent organised crime. Coordinated action across sectors is considered vital to creating safer and more inclusive environments for vulnerable populations.

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xAI plans $20 billion data centre investment in Mississippi

The US AI company, xAI, plans to establish a large-scale data centre in Southaven, Mississippi, representing an investment of more than $20 billion. The project is expected to create several hundred permanent jobs across DeSoto County.

xAI has acquired an existing facility that will be refurbished to support data centre operations, located near additional energy and computing infrastructure already linked to xAI.

Once operational, the Southaven site in the US is expected to expand the company’s overall computing capacity significantly.

State and local authorities approved incentive measures for the project, including tax exemptions available to certified data centres.

Officials indicated that the investment is expected to contribute to local tax revenues supporting public services and infrastructure, while operations are scheduled to begin in February 2026.

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UK outlines approval process for crypto firms

The UK’s Financial Conduct Authority has confirmed that all regulated crypto firms must obtain authorisation under the Financial Services and Markets Act. Both new market entrants and existing operators will be required to comply.

No automatic transition will be available for firms currently registered under anti-money laundering rules. Companies already authorised for other financial services must apply to extend permissions to cover crypto activities and ensure compliance with upcoming regulations.

Pre-application meetings and information sessions will be offered to help firms understand regulatory expectations and enhance the quality of their applications.

An official application window is expected to open in September 2026 and remain active for at least 28 days. Applications submitted during that period are intended to be assessed before the regime formally begins, with further procedural details to be confirmed by the FCA.

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