Digital cooperation

US targets Southeast Asia to stop AI chip leaks to China

The US is preparing stricter export controls on high-end Nvidia AI chips destined for Malaysia and Thailand, in a move to block China’s indirect access to advanced GPU hardware.

According to sources cited by Bloomberg, the new restrictions would require exporters to obtain licences before sending AI processors to either country.

The change follows reports that Chinese engineers have hand-carried data to Malaysia for AI training after Singapore began restricting chip re-exports.

Washington suspects Chinese firms are using Southeast Asian intermediaries, including shell companies, to bypass existing export bans on AI chips like Nvidia’s H100.

Although some easing has occurred between the US and China in areas such as ethane and engine components, Washington remains committed to its broader decoupling strategy. The proposed measures will reportedly include safeguards to prevent regional supply chain disruption.

Malaysia’s Trade Minister confirmed earlier this year that the US had requested detailed monitoring of all Nvidia chip shipments into the country.

As the global race for AI dominance intensifies, Washington appears determined to tighten enforcement and limit Beijing’s access to advanced computing power.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Pakistan launches AI customs system to tackle tax evasion

Pakistan has launched its first AI-powered Customs Clearance and Risk Management System (RMS) to cut tax evasion, reduce corruption, and modernise port operations by automating inspections and declarations.

The initiative, part of broader digital reforms, is led by the Federal Board of Revenue (FBR) with support from the Intelligence Bureau.

By minimising human involvement in customs procedures, the system enables faster, fairer, and more transparent processing. It uses AI and automated bots to assess goods’ value and classification, improve risk profiling, and streamline green channel clearances.

Early trials showed a 92% boost in system performance and more than double the efficiency in identifying compliant cargo.

Prime Minister Shehbaz Sharif praised the collaboration between the FBR and IB, calling the initiative a key pillar of national economic reform. He urged full integration of the system into the country’s digital infrastructure and reaffirmed tax reform as a government priority.

The AI system is also expected to close loopholes in under-invoicing and misdeclaration, which have long been used to avoid duties.

Meanwhile, video analytics technology is trialled to detect factory tax fraud, with early tests showing 98% accuracy. In recent enforcement efforts, authorities recovered Rs178 billion, highlighting the potential of data-driven approaches in tackling fiscal losses.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Samsung profits slump as US chip ban hits AI exports

Samsung Electronics expects its second-quarter operating profits to exceed half, citing Washington’s export controls on advanced AI chips to China.

The company announced a projected 56% year-on-year drop in operating profit, falling to 4.6 trillion won ($3.3 billion), with revenue down 6.5% from the previous quarter.

The semiconductor division, a core part of Samsung’s business, suffered due to reduced utilisation and inventory value adjustments.

US restrictions have made it difficult for South Korea’s largest conglomerate to ship high-end chips to China, forcing some of its production lines to run below capacity.

Despite weak performance in the foundry sector, the memory business remained relatively stable. Analysts pointed to weaker-than-expected sales of HBM chips used for AI and a drop in NAND storage prices, while a declining won-dollar exchange rate further pressured earnings.

Looking ahead, Samsung expects a modest recovery as demand for memory chips, mainly from AI-driven data centres, improves in the year’s second half.

The company is also facing political pressure from Washington, with threats of new tariffs prompting talks between Seoul and the US administration.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Meta hires Apple’s top AI executive amid tech talent war

Apple has lost a key AI executive to Meta, dealing a fresh blow to the tech giant’s internal AI ambitions.

Ruoming Pang, who led Apple’s foundation models team, is joining Meta’s newly formed superintelligence group, according to people familiar with the matter.

Meta reportedly offered Pang a lucrative package worth tens of millions annually, continuing its aggressive hiring streak.

The company, led by Mark Zuckerberg, has already brought in several high-profile AI experts from Scale AI, OpenAI, Anthropic and elsewhere, with Zuckerberg personally involved in recruitment efforts.

Pang’s team at Apple had been responsible for the core language models behind Apple Intelligence and Siri.

However, internal dissatisfaction has been mounting as the company considered shifting to third-party models, including from OpenAI and Anthropic.

That shift, combined with recent leadership changes and reduced responsibilities for Apple’s AI chief John Giannandrea, has weakened morale across the team.

Following Pang’s exit, the team will now be managed by Zhifeng Chen under a new multi-tier structure.

Several engineers are also reportedly planning to leave, raising concerns about Apple’s ability to retain AI talent as Meta increases its investment and influence in the race for advanced AI development.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Reliance set for $50 billion growth with AI and green energy

According to analysts at Morgan Stanley, Reliance Industries is set to grow its market value by $50 billion through large-scale investments in AI infrastructure and new energy. The conglomerate, led by Mukesh Ambani, is retooling its energy and digital units as part of a long-term transformation strategy.

Central to this growth is constructing a generative AI data centre in Jamnagar, India, which will feature 1GW of capacity powered by 1.3GW of green energy. Reliance plans to source this power from its rapidly scaling renewable ecosystem, including solar and green hydrogen.

The firm aims to integrate 10GW of solar capacity by 2026 and has launched lithium battery and green hydrogen projects on a 2,000-acre site in Gujarat. Nvidia’s Blackwell chips will power the upcoming data centres, signalling Reliance’s ambition to make India a hub for next-gen digital infrastructure.

Morgan Stanley estimates up to $60 billion in value creation from the clean energy vertical alone, as Reliance uses electricity to drive data centres, refineries, and chemical facilities. The strategy reflects a broader vision to replace traditional operations with AI-driven, sustainable systems at a global scale.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Capgemini invests in AI-driven operations with WNS

Capgemini has announced it will acquire Indian IT firm WNS for $3.3 billion to accelerate its leadership in agentic AI. The acquisition will significantly enhance Capgemini’s business process services (BPS) by integrating advanced AI capabilities into core operations.

The boards of both companies have approved the deal, which offers WNS shareholders a 28% premium over the 90-day average share price. Completion is expected by the end of 2025, pending regulatory approvals.

The company sees strong potential in embedding AI into enterprise operations, with BPS becoming a key showcase. The integration will strengthen Capgemini’s US presence and unlock cross-selling opportunities across the combined client networks.

Both firms emphasised a shared vision of intelligent operations powered by agentic AI, aiming to help clients shift from automation to AI-driven autonomy. Capgemini’s existing partnerships with tech giants like Microsoft, Google and NVIDIA will support this vision.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Ukraine strengthens cybersecurity ties with EU

Ukraine participated for the first time in the EU National Cybersecurity Coordination Centers meeting and the European Cybersecurity Competence Centre (ECCC) Steering Board in Rome.

The event, supported by Italy’s National Agency for Cybersecurity, focused on enhancing cooperation among EU member states and fostering a unified cyber community.

Natalia Tkachuk, Secretary of Ukraine’s National Coordination Center for Cybersecurity, highlighted the nation’s challenges and experiences in countering cyber threats amidst ongoing conflict.

She emphasized Ukraine’s role in both receiving and sharing cybersecurity knowledge to strengthen collective European security.

Discussions included the establishment of a joint Center of Competence for Cyber Resilience in Ukraine, aiming to counter Russian cyberattacks, disinformation, and sabotage.

The center will utilize artificial intelligence trained on unique Ukrainian data to enhance response capabilities.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Court ruling raises alarm over saved ChatGPT chats

A US federal court has ordered OpenAI to preserve nearly all user chats with ChatGPT, including those that users had deleted. The decision comes as part of The New York Times’s ongoing copyright lawsuit, triggering widespread privacy concerns.

The ruling means that millions of personal conversations, previously thought erased, will remain accessible during litigation. These exchanges may include medical queries, relationship issues, and other private matters shared in confidence.

Privacy advocates argue that users were not notified or allowed to object. Critics warn the US ruling sets a dangerous precedent, enabling mass data preservation in lawsuits unrelated to most users.

The Times claims users may have deleted chats to hide copyright infringement. Lawyers and privacy experts counter that people delete chats for legitimate, non-infringing reasons and should retain control over their data.

Legal experts call the preservation order excessive, noting it undermines trust in AI tools and could lead to a chilling effect on their use. The decision could reshape how user privacy is treated in tech litigation for years.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

BRICS calls for AI data regulations amid challenges with de-dollarisation

BRICS leaders in Rio de Janeiro have called for stricter global rules on how AI uses data, demanding fair compensation for content used without permission.

The group’s draft statement highlights growing frustration with tech giants using vast amounts of unlicensed content to train AI models.

Despite making progress on digital policy, BRICS once again stalled on a long-standing ambition to reduce reliance on the US dollar.

After a decade of talks, the bloc’s cross-border payments system remains in limbo. Member nations continue to debate infrastructure, governance and how to work around non-convertible currencies and sanctions.

China is moving independently, expanding the yuan’s international use and launching domestic currency futures.

Meanwhile, the rest of the bloc struggles with legal, financial and technical hurdles, leaving the dream of a unified alternative to the dollar on hold. Even a proposed New Investment Platform remains mired in internal disagreements.

In response to rising global debt concerns, BRICS introduced a Multilateral Guarantees Initiative within the New Development Bank. It aims to improve credit access across the Global South without needing new capital, especially for countries struggling to borrow in dollar-dominated markets.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Regions seek role in EU hospital cyber strategy

The European Commission’s latest plan to strengthen hospital cybersecurity has drawn attention from regional authorities across the EU, who say they were excluded from key decisions.

Their absence, they argue, could weaken the strategy’s overall effectiveness.

With cyberattacks on healthcare systems growing, regional representatives insist they should have a seat at the table.

As those directly managing hospitals and public health, they warn that top-down decisions may overlook urgent local challenges and lead to poorly matched policies.

The Commission’s plan includes creating a dedicated health cybersecurity centre under the EU Agency for Cybersecurity (ENISA) and setting up an EU-wide threat alert system.

Yet doubts remain over how these goals will be met without extra funding or clear guidance on regional involvement.

The concerns point to the need for a more collaborative approach that values regional knowledge.

Without it, the EU risks designing cybersecurity protections that fail to reflect the realities inside Europe’s hospitals.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!