Digital business models

Google sees growing demand for cloud data sovereignty

Google’s Cloud Experience lead Hayete Gallot says developer interest in sovereign cloud solutions is rising sharply amid AI concerns. More clients are asking to control how and where their data is stored, processed, and encrypted within public cloud environments.

Microsoft said it could not guarantee full cloud data sovereignty in July, increasing pressure on rivals to offer stronger protections.

Gallot noted that sovereignty is more than location. Cybersecurity measures such as encryption, ownership, and administrative access are now top priorities for businesses.

On AI, Gallot dismissed fears that assistants will replace developers, saying skills like prompt writing still require critical thinking.

She believes modern developers must adapt, comparing today’s AI tools to learning older languages like Pascal or Fortran.

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Musk acknowledges value in ChatGPT-5’s modesty after public spat

Elon Musk has taken an unexpected conciliatory turn in his feud with Sam Altman by praising a ChatGPT-5 response, ‘I don’t know’, as more valuable than overconfident answers. Musk described it as ‘a great answer’ from the AI chatbot.

Initially sparked by Musk accusing Apple of favouring ChatGPT in App Store rankings and Altman firing back with claims of manipulation on X, the feud has taken on new dimensions as AI itself seems to weigh in.

At one point, xAI’s Grok chat assistant sided with Altman, while ChatGPT offered a supportive nod to Musk. These chatbot alignments have introduced confusion and irony into a clash already rich with irony.

Musk’s praise of a modest AI response contrasts sharply with the often intense claims of supremacy. It signals a rare acknowledgement of restraint and clarity, even from an avowed critic of OpenAI.

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Meta brings AI translations with lip syncing to Instagram and Facebook

Meta has introduced AI-powered translation tools for creators on Instagram and Facebook, allowing reels to be dubbed into other languages with automatic lip syncing.

The technology uses the creator’s voice instead of a generic substitute, ensuring tone and style remain natural while lip movements match the dubbed track.

The feature currently supports English-to-Spanish and Spanish-to-English, with more languages expected soon. On Facebook, it is limited to creators with at least 1,000 followers, while all public Instagram accounts can use it.

Viewers automatically see reels in their preferred language, although translations can be switched off in settings.

Through Meta Business Suite, creators can also upload up to 20 custom audio tracks per reel, offering manual control instead of relying only on automated translations. Audience insights segmented by language allow performance tracking across regions, helping creators expand their reach.

Meta has advised creators to prioritise face-to-camera reels with clear speech instead of noisy or overlapping dialogue.

The rollout follows a significant update to Meta’s Edits app, which added new editing tools such as real-time previews, silence-cutting and over 150 fresh fonts to improve the Reels production process.

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Arm to build its own chips with AI focus

Arm Holdings has hired Amazon’s AI chip lead, Rami Sinno, to design its own complete chips. Known for Amazon’s Trainium and Inferentia processors, Sinno brings key expertise to Arm’s new direction in chip manufacturing.

Arm has traditionally licensed chip designs to companies like Apple and Nvidia, but now aims to build chips and complete systems. The firm is expanding teams with experience from HPE, Intel and Qualcomm, signalling a significant shift in its business model.

Backed by SoftBank, Arm plans to invest profits in chip development to rival Nvidia and reduce reliance on traditional licensing.

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Microsoft and AMD develop new gaming chips

Microsoft plans to equip its next-generation Xbox console with AI-focused hardware, including a dedicated neural processing unit.

Vice President Jason Ronald confirmed that the company is working with AMD to develop chips for gaming consoles, PCs and cloud platforms.

New AI capabilities are expected to transform gameplay and provide developers with tools to create immersive, previously unattainable experiences.

Microsoft’s experimental Xbox Ally X device, developed with ASUS, is already used to test AI integration in real-world scenarios.

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South Korea moves forward with won-denominated stablecoin

South Korea is advancing plans for a won-denominated stablecoin as the Financial Services Commission (FSC) drafts a regulatory framework. The proposal will set rules for issuance, collateral, and controls, marking South Korea’s first unified approach to stablecoins.

Political and industry momentum has been growing under pro-crypto President Lee Jae-myung. Surveys show strong public interest, while USD-backed stablecoins dominate local trading and remittances.

Eight major banks are collaborating on a joint won-based token, seeking regulatory approval to maintain competitiveness and reduce reliance on foreign-issued coins.

The private sector has already launched South Korea’s first won-pegged stablecoin. On 5 August, entertainment platform fanC and software firm Initech unveiled KRWIN, pegged 1:1 to the Korean won.

The pilot tests transferability and real-world use in payments, remittances, and tourism, with plans for a broader rollout hinted at by a trademark application.

Regional interest in stablecoins is rising across Asia, with Japan and Hong Kong also exploring initiatives. Dollar-backed stablecoins like USDT and USDC still dominate, keeping competition and adoption timelines uncertain despite won-pegged token launches.

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AI agents are transforming game development

A new Google Cloud survey shows that nearly nine in ten game developers have integrated AI agents into their workflow. These autonomous programs generate assets and interact with players in real time, adapting game worlds and NPCs to boost immersion.

Smaller studios are benefiting from AI, with nearly a third saying it lowers barriers to entry and allows them to compete with larger publishers. Developers report faster coding, testing, localisation, and onboarding, while larger companies face challenges adapting legacy systems to new AI tools.

AI-powered tools are also deployed to moderate online communities, guide tutorials, and respond dynamically to players.

While AI is praised as a productivity multiplier and creative copilot, some developers warn that a lack of standards can lead to errors and quality issues. Human creativity remains central, with many studios using AI to enhance gameplay rather than replace artistic and narrative input.

Developers stress the importance of maintaining unique styles and creative integrity while leveraging AI to unlock new experiences.

Industry experts highlight that gamers are receptive to AI when it deepens immersion and storytelling, but sceptical if it appears to shortcut the creative process. The survey shows that developers view AI as a long-term asset that can be used to reshape how games are made and experienced.

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Zoom launches AI Virtual Agent to replace human receptionists

Zoom has unveiled its Virtual Agent for Zoom Phone, a 24/7 AI concierge designed to replace or support human receptionists. The tool can greet callers naturally, process requests, and initiate next steps without human intervention, aiming to reduce missed calls and waiting times.

The AI agent is initially available in English, Spanish, French, German, Portuguese, and Japanese, with more languages planned.

Companies can set up the system without coding expertise by training it with existing documents or company websites, allowing for a faster, personalised, and scalable customer experience.

Zoom highlighted use cases across sectors, including booking appointments in healthcare, checking stock and answering retail product queries, and providing financial service updates. The Virtual Agent promises to handle these tasks autonomously, giving businesses greater efficiency and flexibility.

In addition, Zoom has enhanced its AI Companion tool to manage meeting scheduling. The agent can coordinate invites, track responses, and suggest alternatives, freeing teams to focus on discussions rather than logistics.

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Applied Digital unveils $3 billion AI factory in North Dakota

Applied Digital is expanding in North Dakota with Polaris Forge 2, a $3 billion AI factory breaking ground in September 2025. The Harwood site will add 280 megawatts of capacity by 2027, cementing the state’s role in US AI infrastructure.

The project reflects demand and Applied Digital’s push to deliver high-performance compute power at scale. CEO Wes Cummins confirmed strong partner interest, including discussions with a US hyperscaler, and stated that the development will enhance growth and community value.

North Dakota has become a key destination for data centres, with abundant power, land, and a business-friendly climate. Polaris Forge 2 builds on the success of the Ellendale campus, with over 900 acres contracted and energy secured from Cass County Electric Cooperative.

The campus will employ more than 200 staff and contractors upon completion of operations. Governor Kelly Armstrong welcomed the investment, praising Applied Digital’s housing and workforce initiatives in Ellendale as a model for rural innovation and economic resilience.

Commerce Commissioner Chris Schilken said the Harwood site extends that success, reinforcing North Dakota as a hub for sustainable AI infrastructure. Applied Digital sees Polaris Forge 2 as advancing its mission to deliver innovation while driving local development and long-term growth.

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Study finds AI-generated responses flooding research platforms

Online questionnaires are being increasingly swamped by AI-generated responses, raising concerns that a vital data source for researchers is becoming polluted. Platforms like Prolific, which pay participants to answer questions, are widely used in behavioural studies.

Researchers at the Max Planck Institute noticed suspicious patterns in their work and began investigating. They found that nearly half of the respondents copied and pasted answers, strongly suggesting that many were outsourcing tasks to AI chatbots.

Analysis showed clear giveaways, including overly verbose and distinctly non-human language. The researchers concluded that a substantial proportion of behavioural studies may already be compromised by chatbot-generated content.

In follow-up tests, they set traps to detect AI use, including invisible text instructions and restrictions on copy-paste. The measures caught a further share of participants, highlighting the scale of the challenge facing online research platforms.

Experts say the responsibility lies with both researchers and platforms. Stronger verification methods and tighter controls are needed for online behavioural research to remain credible.

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