AWS scales AI with inference-focused systems

AI assistants deliver answers in seconds, but the process behind the scenes, called inference, is complex. Inference lets trained AI models generate responses, recommendations, or images, accounting for up to 90% of AI computing power.

AWS has built infrastructure to handle these fast, high-volume operations reliably and efficiently.

Inference involves four main stages: tokenisation, prefill, decoding, and detokenisation. Each step converts human input into machine-readable tokens, builds context, generates responses token by token, and converts output back to readable text.

AWS custom Trainium chips speed up the process while reducing costs. AI agents add complexity by chaining multiple inferences for multi-step tasks.

AWS uses its Bedrock platform, Project Mantle engine, and Journal tool to manage long-running requests, prioritise urgent tasks, and maintain low latency. Unified networking ensures efficiency and fairness across users.

By focusing on inference-first infrastructure, AWS lowers AI costs while enabling more advanced applications. Instant responses from AI assistants are the result of years of engineering, billions in investment, and systems built to scale globally.

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PostFinance expands digital asset range to 22 cryptocurrencies

Swiss lender PostFinance has broadened its digital-asset offering to 22 cryptocurrencies, adding Algorand, Arbitrum, NEAR Protocol, Stellar, USDC, and Sui to its platform. The expansion strengthens its position as one of the most comprehensive retail crypto offerings among Swiss banks.

Direct cryptocurrency access was introduced in early 2024, making the institution the first systemically important bank in Switzerland to provide such services. Further additions followed mid-year, reflecting growing client demand for regulated exposure to digital assets.

More than 36,000 custody accounts have been opened since launch, generating over 565,000 trades. According to Alexander Thoma, the bank continues to broaden its selection as customers increasingly prefer to manage crypto through their primary banking provider.

Trading is available via e-finance and the PostFinance app, with a minimum entry level of $50 for both savings plans and individual orders, a move aimed at lowering barriers and widening retail participation.

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Lyria 3 brings AI-generated music to Gemini

The Gemini app has introduced Lyria 3, the latest music-generation model from Google DeepMind, enabling users to create 30-second tracks from text prompts, images, or videos. The feature is rolling out in beta, marking a further expansion of creative tools within the platform.

Users can customise genre, tempo, and vocals, while the system generates lyrics automatically when needed. Tracks include AI-generated cover art and can be shared directly, aiming to provide a simple way to produce short, personalised soundtracks rather than full compositions.

Audio created in the app is embedded with SynthID watermarking to identify AI-generated content, alongside new verification tools that allow users to check whether files were produced using Google AI.

The model is designed to produce original material rather than replicate specific artists, supported by filters and reporting mechanisms.

Availability initially covers multiple major languages for users aged 18 and over, with higher usage limits offered to premium subscribers. Lyria 3 is also being integrated into YouTube creator tools to enhance Shorts soundtracks as the rollout expands.

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Bitcoin divergence signals rising credit stress

A fresh analysis from Arthur Hayes argues that Bitcoin is signalling mounting stress in the global fiat system as it diverges from the Nasdaq 100. Hayes says Bitcoin is the most sensitive market gauge of credit supply, making its decoupling a possible early warning of systemic stress.

A significant drop in employment, he argues, could translate into large mortgage and consumer-credit losses for US banks.

Estimates suggest a 20% drop in US knowledge workers could trigger about $557 billion in credit losses, hitting bank capital and regional lenders first. Hayes expects instability to force the Federal Reserve to add liquidity, a move he says could lift Bitcoin to new highs.

Beyond the flagship cryptocurrency, Hayes said his firm Maelstrom may allocate stablecoin reserves to Zcash and Hyperliquid once monetary policy shifts, although timing and price targets remain unspecified.

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India unveils MANAV Vision as new global pathway for ethical AI

Narendra Modi presented the new MANAV Vision during the India AI Impact Summit 2026 in New Delhi, setting out a human-centred direction for AI.

He described the framework as rooted in moral guidance, transparent oversight, national control of data, inclusive access and lawful verification. He argued that the approach is intended to guide global AI governance for the benefit of humanity.

The Prime Minister of India warned that rapid technological change requires stronger safeguards and drew attention to the need to protect children. He also said societies are entering a period where people and intelligent systems co-create and evolve together instead of functioning in separate spheres.

He pointed to India’s confidence in its talent and policy clarity as evidence of a growing AI future.

Modi announced that three domestic companies introduced new AI models and applications during the summit, saying the launches reflect the energy and capability of India’s young innovators.

He invited technology leaders from around the world to collaborate by designing and developing in India instead of limiting innovation to established hubs elsewhere.

The summit brought together policymakers, academics, technologists and civil society representatives to encourage cooperation on the societal impact of artificial intelligence.

As the first global AI summit held in the Global South, the gathering aligned with India’s national commitment to welfare for all and the wider aspiration to advance AI for humanity.

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Microsoft pledges $50bn for AI in Global South

Microsoft has announced it is on pace to invest $50 billion by the end of the decade to expand AI access across the Global South, speaking at the India AI Impact Summit in Delhi. The company said AI usage in the Global North is roughly double that of the Global South, with the gap widening.

In India and other regions of the Global South, Microsoft is increasing investment in data centre infrastructure, connectivity and electricity to support AI deployment. The company reported more than $8 billion invested in infrastructure serving the Global South in its last fiscal year.

Microsoft is also expanding skills and education programmes in India, including a pledge to help 20 million people gain AI credentials by 2028 and a target to equip 20 million people in India with AI skills by 2030.

Additional initiatives focus on multilingual AI development, food security projects in Kenya and across Sub-Saharan Africa, and new data tools to measure AI diffusion. Microsoft said coordinated global partnerships are essential to ensure AI benefits reach countries in the Global South.

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Proposed GDPR changes target AI development

The European Commission has proposed changes to the GDPR and the EU AI Act as part of its Digital Omnibus Package, seeking to clarify how personal data may be processed for AI development and operation across the EU.

A new provision would recognise AI development and operation as a potential legitimate interest under the GDPR, subject to necessity and a balancing test. Controllers in the EU would still need to demonstrate safeguards, including data minimisation, transparency and an unconditional right to object.

The package also introduces a proposed legal ground for processing sensitive data in AI systems where removal is not feasible without disproportionate effort. Claims that strict conditions would apply, requiring technical protections and documentation throughout the lifecycle of AI models in the EU.

Further amendments would permit biometric data processing for identity verification under defined conditions and expand the rules allowing sensitive data to be used for bias detection beyond high-risk AI systems.

Overall, the proposals aim to provide greater legal certainty without overturning existing data protection principles. The EU lawmakers and supervisory authorities continue to debate the proposals before any final adoption.

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AI climate benefits overstated says new civil society report

Environmental groups, including Beyond Fossil Fuels and Stand.earth, have published a report challenging claims that AI will meaningfully address climate change. The analysis argues that rapid data centre expansion is being justified by overstated promises of ‘AI for climate’ benefits.

Researchers found that many cited emissions reductions relate to older forms of machine learning rather than energy-intensive generative AI systems. At the same time, rising electricity demand from large-scale AI deployment is driving increased fossil fuel use.

The report also questions evidence presented by corporations and institutions such as the International Energy Agency, stating that projected climate gains are often weak or exaggerated. Companies are reported to be drifting away from climate targets even when renewable energy offsets are included.

Campaigners say framing AI as a climate solution risks distracting from corporate decisions that increase pollution and digital infrastructure growth. They call for stronger accountability and clearer scrutiny of environmental claims linked to emerging technologies.

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Rwanda and Anthropic sign AI partnership

Anthropic and the Government of Rwanda have signed a three-year Memorandum of Understanding to expand AI deployment across health, education and public sector services in Rwanda. The agreement marks Anthropic’s first multi-sector government partnership in Africa.

In Rwanda’s health system, Anthropic will support national priorities, including efforts to eliminate cervical cancer and reduce malaria and maternal mortality. Rwanda’s Ministry of Health will work with Anthropic to integrate AI tools aligned with national objectives.

Public sector developer teams in Rwanda will gain access to Claude and Claude Code, alongside training, API credits and technical support. The partnership also formalises an education programme launched in 2025 that provided 2,000 Claude Pro licences to educators in Rwanda.

Officials in Rwanda have said the collaboration focuses on capacity development, responsible deployment and local autonomy. Anthropic stated that investment in skills and infrastructure in Rwanda aims to enable safe and independent use of AI by teachers, health workers and public servants.

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The reality behind AI hype

As governments and tech leaders gather at global forums such as the AI Impact Summit in New Delhi, one assumption dominates discussion: the more computing power poured into AI, the better it will become. In his blog ‘‘The elephant in the AI room’: Does more computing power really bring more useful AI?’, Jovan Kurbalija questions whether that belief is as solid as it seems.

For years, the AI race has been driven by the idea that ever-larger models and vast GPU farms are the key to progress. That logic has justified enormous energy consumption and multi-billion-dollar investments in data centres. But Kurbalija argues that bigger is not always better, especially when everyday tasks often require far less computational firepower than frontier models provide.

He points out that most people rely on a limited vocabulary and a small set of reasoning tools in their daily work. Smaller, specialised AI systems can already draft emails, summarise meetings, or classify documents effectively. The push for trillion-parameter models, he suggests, may reflect ambition more than necessity.

There are also technical limits to consider. Adding more computing power can lead to diminishing returns, and some prominent researchers doubt that simply scaling up large language models will lead to human-level intelligence. More hardware, Kurbalija notes, does not automatically solve deeper conceptual challenges in AI design.

The economic picture is equally complex. Training cutting-edge proprietary models can cost hundreds of millions of dollars, while newer open-source systems have been developed at a fraction of that price. If cheaper models can deliver similar performance, questions arise about the sustainability of current spending and whether investors are backing efficiency or hype.

Beyond cost and performance lies a broader ethical issue. Even if massive computing power could eventually produce superintelligent systems, the key question is whether society truly needs them. Kurbalija warns that technological possibilities should not be confused with social desirability, and that innovation without a clear purpose can create new risks.

Rather than escalating an arms race for ever-larger models, the blog calls for a shift toward needs-driven design. Right-sized tools, viable business models, and ethical clarity about AI’s role in society may prove more valuable than raw computing muscle.

In challenging the prevailing narrative, Kurbalija urges policymakers and industry leaders to rethink whether the future of AI depends on scale alone or on smarter priorities.

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