E-commerce and trade

Big Tech boosts India’s AI ambitions amid concerns over talent flight and limited infrastructure

Major announcements from Microsoft ($17.5bn) and Amazon (over $35bn by 2030) have placed India at the centre of global AI investment trends, offering momentum at a time when analysts frame Indian markets as a ‘hedge’ against a potential global AI bubble.

While India has rapidly adopted AI and attracted substantial funding for data centres and chip manufacturing, including a new collaboration between Intel and Tata Electronics, the country remains a follower rather than a frontrunner in sovereign AI capabilities.

India’s government is preparing to launch its first sovereign AI model, which will support more than 22 languages. Yet its $1.25 billion investment is dwarfed by France’s €117 billion and Saudi Arabia’s $100 billion AI programmes, leaving India far behind in compute availability, R&D depth, and semiconductor infrastructure.

Despite having 2.5 times the global average concentration of AI-skilled professionals, the country faces persistent talent flight due to limited high-end domestic opportunities and a lack of competitive policy incentives.

According to EY and UNCTAD, India’ punches above its weight’ relative to its economic stage, ranking among the top nations in AI talent, startup activity, and scientific publications. Still, funding gaps remain stark: Indian AI startups raised just $1.16 billion, compared to more than $100 billion in the US and nearly $10 billion in China.

India’s emerging strength lies less in foundation-model development and more in downstream AI applications, where cost-efficient tools can drive entrepreneurship and solve local challenges such as agriculture, education, and public service delivery. Apps like MahaVISTAAR, reaching over 15 million farmers, illustrate this direction.

Yet AI also poses a threat to India’s economic backbone. Analysts warn that the country’s IT services sector, which has long been a pillar of growth, is becoming increasingly vulnerable as AI automates core business functions. Underperformance in IT stocks, reduced hiring, and stagnant wages signal early disruption.

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

Swiss city deepens crypto adoption as 350 businesses now accept Bitcoin

The Swiss city of Lugano has advanced one of Europe’s most ambitious crypto-adoption programmes, with more than 350 shops and restaurants now accepting Bitcoin for everyday purchases, alongside municipal services such as pre-school childcare.

The city has distributed crypto-payment terminals free to local merchants, part of its Plan B initiative, launched in partnership with Tether to position Lugano as a European bitcoin hub.

Merchants cite lower transaction fees compared to credit cards, though adoption remains limited in practice. City officials and advocates envision a future ‘circular economy,’ where residents earn and spend bitcoin locally.

Early real-world tests suggest residents can conduct most daily purchases in Bitcoin, though gaps remain in public transport, fuel and utilities.

Lugano’s strategy comes as other national or city-level cryptocurrency initiatives have struggled. El Salvador’s experiment with making Bitcoin legal tender has seen minimal uptake, while cities such as Ljubljana and Zurich have been more successful in encouraging crypto-friendly ecosystems.

Analysts and academics warn that Lugano faces significant risks, including bitcoin’s volatility, reputational exposure linked to illicit use, and vulnerabilities tied to custodial digital wallets.

Switzerland’s deposit-guarantee protections do not extend to crypto assets, which raises concerns about consumer protection. The mayor, however, dismisses fears of criminal finance, arguing that cash remains far more attractive for illicit transactions.

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

Adobe brings its leading creative tools straight into ChatGPT

Yesterday, Adobe opened a new chapter for digital creativity by introducing Photoshop, Adobe Express and Adobe Acrobat inside ChatGPT.

The integration gives 800 million weekly users direct access to trusted creative and productivity tools through a conversational interface. Adobe aims to make creative work easier for newcomers by linking its technology to simple written instructions.

Photoshop inside ChatGPT offers selective edits, tone adjustments and creative effects, while Adobe Express brings quick design templates and animation features to people who want polished content without switching between applications.

Acrobat adds powerful document controls, allowing users to organise, edit or redact PDFs inside the chat. Each action blends conversation with Adobe’s familiar toolsets, giving users either simple text-driven commands or fine control through intuitive sliders.

The launch reflects Adobe’s broader investment in agentic AI and its Model Context Protocol. Earlier releases such as Acrobat Studio and AI Assistants for Photoshop and Adobe Express signalled Adobe’s ambition to expand conversational creative experiences.

Adobe also plans to extend an upcoming Firefly AI Assistant across multiple apps to support faster movement from an idea to a finished design.

All three apps are now available to ChatGPT users on desktop, web and iOS, with Android support expanding soon. Adobe positions the integration as an entry point for new audiences who may later move into the full desktop versions for deeper control.

The company expects the partnership to widen access to creative expression by letting anyone edit images, produce designs or transform documents simply by describing what they want to achieve.

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

SwissBorg unveils Mastercard-powered crypto card

SwissBorg has formed a strategic partnership with Mastercard to launch the SwissBorg Card, a crypto debit card designed to facilitate everyday digital-asset spending.

Users can spend crypto at over 150 million Mastercard locations worldwide, making digital assets more practical for everyday use.

The card provides real-time crypto-to-fiat conversion via SwissBorg’s Meta-Exchange, which finds the best rates across centralised and decentralised platforms. Users can select a primary asset with backups, and transactions are settled in local currencies such as CHF, GBP, or EUR.

The programme introduces a cashback system that returns up to 90% of exchange-related fees in BORG, with rewards increasing as users progress through SwissBorg’s loyalty ranks. Additional benefits include boosted yields, airdrops, and priority access to selected investment opportunities.

The SwissBorg app lets users manage cards, reorder assets, freeze or block cards, and track conversions. The virtual version will launch in Q1 2026 across 30 countries, with physical cards and expanded features planned for subsequent releases.

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

Microsoft commits $17.5 billion to AI in India

The US tech giant, Microsoft, has announced its largest investment in Asia, committing US$17.5 billion to India over four years to expand cloud and AI infrastructure, workforce skilling, and operations nationwide.

An announcement that follows the US$3 billion investment earlier in 2025 and aims to support India’s ambition to become a global AI leader.

The investment focuses on three pillars: hyperscale infrastructure, sovereign-ready solutions, and workforce development. A new hyperscale data centre in Hyderabad, set to go live by mid-2026, will become Microsoft’s largest in India.

Expansion of existing data centres in Chennai, Hyderabad and Pune will improve resilience and low-latency performance for enterprises, startups, and public sector organisations.

Microsoft will integrate AI into national platforms, including e-Shram and the National Career Service, benefiting over 310 million informal workers. AI-enabled features include multilingual access, predictive analytics, automated résumé creation, and personalised pathways toward formal employment.

Skilling initiatives will be doubled to reach 20 million Indians by 2030, building an AI-ready workforce that can shape the country’s digital future.

Sovereign Public and Private Cloud solutions will provide secure, compliant environments for Indian organisations, supporting both connected and disconnected operations.

Microsoft 365 Copilot will process data entirely within India by the end of 2025, enhancing governance, compliance, and performance across regulated sectors. These initiatives aim to position India as a global AI hub powered by scale, skilling, and digital sovereignty.

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

Trump allows Nvidia to sell chips to approved Chinese customers

US President Donald Trump has allowed Nvidia to sell H200 AI chips to approved customers in China, marking a shift in export controls. The decision also covers firms such as AMD and follows continued lobbying by Nvidia chief executive Jensen Huang.

Nvidia had been barred from selling advanced chips to Beijing, but a partial reversal earlier required the firm to pay a share of its Chinese revenues to the US government. China later ordered firms to stop buying Nvidia products, pushing them towards domestic semiconductors.

Analysts suggest the new policy may buy time for negotiations over rare earth supplies, as China dominates processing of these minerals. Access to H200 chips may aid China’s tech sector, but experts warn they could also strengthen military AI capabilities.

Nvidia welcomed the announcement, saying the decision strikes a balance that benefits American industry. Shares rose slightly after the news, although the arrangement is expected to face scrutiny from national security advocates.

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

Canada-EU digital partnership expands cooperation on AI and security

The European Union and Canada have strengthened their digital partnership during the first Digital Partnership Council in Montreal. Both sides outlined a joint plan to enhance competitiveness and innovation, while supporting smaller firms through targeted regulation.

Senior representatives reconfirmed that cooperation with like-minded partners will be essential for economic resilience.

A new Memorandum of Understanding on AI placed a strong emphasis on trustworthy systems, shared standards and wider adoption across strategic sectors.

The two partners will exchange best practices to support sectors such as healthcare, manufacturing, energy, culture and public services.

They also agreed to collaborate on large-scale AI infrastructures and access to computing capacity, while encouraging scientific collaboration on advanced AI models and climate-related research.

A meeting that also led to an agreement on a structured dialogue on data spaces.

A second Memorandum of Understanding covered digital credentials and trust services. The plan includes joint testing of digital identity wallets, pilot projects and new use cases aimed at interoperability.

The EU and Canada also intend to work more closely on the protection of independent media, the promotion of reliable information online and the management of risks created by generative AI.

Both sides underlined their commitment to secure connectivity, with cooperation on 5G, subsea cables and potential new Arctic routes to strengthen global network resilience. Further plans aim to deepen collaboration on quantum technologies, semiconductors and high-performance computing.

A renewed partnership that reflects a shared commitment to resilient supply chains and secure cloud infrastructure as both regions prepare for future technological demands.

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

Argentina weighs letting banks offer crypto services

Argentina may soon shift its digital-asset policy as the central bank considers rules allowing banks to offer crypto trading and custody services. The proposal marks a move towards integrating a market that has largely operated through exchanges and fintech platforms.

Industry sources say approval could arrive by April 2026 if the process stays on schedule.

Crypto usage in Argentina remains far above regional averages, driven by years of inflation and strict currency controls. Many households use digital assets as a store of value, and regulated banks could provide clearer safeguards and easier access for everyday users.

Regulators are still debating sensitive issues such as custody requirements, capital treatment and which tokens banks would be permitted to handle.

The conversation continues in the shadow of the Libra meme-coin scandal, which left thousands of Argentines with steep losses and highlighted the risks of politically amplified speculation.

Regulators are weighing custody, capital, and token rules while aiming to formalise the market without boosting volatility.

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

Instacart deepens partnership with OpenAI for real-time AI shopping

OpenAI and Instacart are expanding their longstanding collaboration by introducing a fully integrated grocery shopping experience inside ChatGPT.

Users can receive meal inspiration, browse products and place orders in one continuous conversation instead of switching across separate platforms.

A service that brings together Instacart’s real-time retail network with OpenAI’s most advanced models to produce an experience that feels like a direct link between a simple request and completed delivery.

The Instacart app becomes the first service to offer a full checkout flow inside ChatGPT by using the Agentic Commerce Protocol. When users mention food, ingredients or recipe ideas, ChatGPT can surface the app immediately.

Once the user connects an Instacart account, the system selects suitable items from nearby retailers and builds a complete cart that can be reviewed before payment. Users then pay securely inside the chat while Instacart manages collection and delivery through its established network.

The update also reflects broader cooperation between the two companies. Instacart continues to rely on OpenAI APIs to support personalised suggestions and real time guidance across its customer experience.

ChatGPT Enterprise assists internal teams, while Codex powers an internal coding agent that shortens development cycles instead of slowing them down with manual tasks. The partnership builds on Instacart’s early involvement in the Operator research preview, where it helped refine emerging agentic technologies.

A renewed partnership that strengthens OpenAI’s growing enterprise ecosystem. The company already works with major global brands across sectors such as retail, financial services and telecommunications.

The Instacart integration offers a view of how conversational agents may act as a bridge between everyday intent and immediate real-world action.

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

Claude Code expands automated AI fine tuning for businesses

Anthropic’s Claude Code now supports automated fine-tuning of open-source AI models, significantly widening access to advanced customisation for small-to-medium-sized (SMB) businesses. The new capability allows companies to train personalised systems using their own data without needing specialised technical expertise.

Claude Code’s hf-llm-trainer skill manages everything from hardware selection to authentication and training optimisation, simplifying what was once a highly complex workflow. Early accounts suggest the process can cost only a few cents, lowering barriers for firms seeking tailored AI solutions.

Businesses can now use customer logs, product manuals or internal documents to build AI models adapted to their operations, enabling improved support tools and content workflows. Many analysts view the advance as a major step in giving SMBs affordable access to company-specific AI that previously required substantial investment.

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