Economic

China moves toward data centres in orbit

China is planning to develop large-scale space-based data centres over the next five years as part of a broader push to support AI development. The China Aerospace Science and Technology Corporation (CASC) has announced plans to build gigawatt-class digital infrastructure in orbit, according to Chinese state broadcaster CCTV.

Under CASC’s five-year development plan, the space data centres are expected to combine cloud, edge and terminal technologies, allowing computing power, data storage and communication capacity to operate as an integrated system. The aim is to create high-performance infrastructure capable of supporting advanced AI workloads beyond Earth.

The initiative follows a recent CASC policy proposal calling for solar-powered, gigawatt-scale space-based hubs to supply energy for AI processing. The proposal aligns with China’s upcoming 15th Five-Year Plan, which is set to place AI at the centre of national development priorities.

China has already taken early steps in this direction. In May 2025, Zhejiang Lab launched 12 low Earth orbit satellites to form the first phase of its ‘Three-Body Computing Constellation.’ The research institute plans to eventually deploy around 2,800 satellites, targeting a total computing power of 1,000 peta operations per second.

Interest in space-based data centres is growing globally. European aerospace firm Thales Alenia Space has been studying its feasibility since 2023, while companies such as SpaceX, Blue Origin, and several startups in the US and the UAE are exploring similar concepts at varying stages of development and ambition.

Supporters argue that space data centres could reduce environmental impacts on Earth, benefit from constant solar energy and simplify cooling. However, experts warn that operating in space brings its own challenges, including exposure to radiation, solar flares and space debris, as well as higher costs and greater difficulty when repairs are needed.

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EU confronts Grok abuse as Brussels tests its digital power

The European Commission has opened a formal investigation into Grok after the tool produced millions of sexualised images of women and children.

A scrutiny that centres on whether X failed to carry out adequate risk assessments before releasing the undressing feature in the European market. The case arrives as ministers, including Sweden’s deputy prime minister, publicly reveal being targeted by the technology.

Brussels is preparing to use its strongest digital laws instead of deferring to US pressure. The Digital Services Act allows the European Commission to fine major platforms or force compliance measures when systemic harms emerge.

Experts argue the Grok investigation represents an important test of European resolve, particularly as the bloc tries to show it can hold powerful companies to account.

Concerns remain about the willingness of the EU to act decisively. Reports suggest the opening of the probe was delayed because of a tariff dispute with Washington, raising questions about whether geopolitical considerations slowed the enforcement response.

Several lawmakers say the delay undermined confidence in the bloc’s commitment to protecting fundamental rights.

The investigation could last months and may have wider implications for content ranking systems already under scrutiny.

Critics say financial penalties may not be enough to change behaviour at X, yet the case is still viewed as a pivotal moment for European digital governance. Observers believe a firm outcome would demonstrate that emerging harms linked to synthetic media cannot be ignored.

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Millions use Telegram to create AI deepfake nudes as digital abuse escalates

A global wave of deepfake abuse is spreading across Telegram as millions of users generate and share sexualised images of women without consent.

Researchers have identified at least 150 active channels offering AI-generated nudes of celebrities, influencers and ordinary women, often for payment. The widespread availability of advanced AI tools has turned intimate digital abuse into an industrialised activity.

Telegram states that deepfake pornography is banned and says moderators removed nearly one million violating posts in 2025. Yet new channels appear immediately after old ones are shut, enabling users to exchange tips on how to bypass safety controls.

The rise of nudification apps on major app stores, downloaded more than 700 million times, adds further momentum to an expanding ecosystem that encourages harassment rather than accountability.

Experts argue that the celebration of such content reflects entrenched misogyny instead of simple technological misuse. Women targeted by deepfakes face isolation, blackmail, family rejection and lost employment opportunities.

Legal protections remain minimal in much of the world, with fewer than 40% of countries having laws that address cyber-harassment or stalking.

Campaigners warn that women in low-income regions face the most significant risks due to poor digital literacy, limited resources and inadequate regulatory frameworks.

The damage inflicted on victims is often permanent, as deepfake images circulate indefinitely across platforms and are impossible to remove, undermining safety, dignity and long-term opportunities comprehensively.

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Prism launches as OpenAI’s new workspace for scientific papers

OpenAI has launched Prism, a cloud-based LaTeX workspace designed to streamline the drafting, collaboration, and publication of academic papers. The tool integrates writing, citation management, real-time collaboration, and AI assistance into a single environment to reduce workflow friction.

Built specifically for scientific use, Prism embeds GPT-5.2 directly inside documents rather than as a separate chatbot. Researchers can rewrite sections, verify equations, test arguments, and clarify explanations without leaving the editing interface, positioning AI as a background collaborator.

Users can start new LaTeX projects or upload existing files through prism.openai.com using a ChatGPT account. Co-authors can join instantly, enabling simultaneous editing while maintaining structured formatting for equations, references, and manuscript layout.

OpenAI says Prism supports academic search, converts handwritten formulas into clean LaTeX, and allows voice-driven edits for faster reviews. Completed papers export as publication-ready PDFs alongside full source files.

Initially available for free to personal ChatGPT users, the workspace will later expand to Business, Enterprise, and Education plans. The company frames the tool as a practical productivity layer rather than a research disruption platform.

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UK minister signals interest in universal basic income amid rising AI job disruption

Jason Stockwood, the UK investment minister, has suggested that a universal basic income could help protect workers as AI reshapes the labour market.

He argued that rapid advances in automation will cause disruptive shifts across several sectors, meaning the country must explore safety mechanisms rather than allowing sudden job losses to deepen inequality. He added that workers will need long-term retraining pathways as roles disappear.

Concern about the economic impact of AI continues to intensify.

Research by Morgan Stanley indicates that the UK is losing more jobs than it is creating because of automation and is being affected more severely than other major economies.

Warnings from London’s mayor, Sadiq Khan and senior global business figures, including JP Morgan’s chief executive Jamie Dimon, point to the risk of mass unemployment unless governments and companies step in with support.

Stockwood confirmed that a universal basic income is not part of formal government policy, although he said people inside government are discussing the idea.

He took up his post in September after a long career in the technology sector, including senior roles at Match.com, Lastminute.com and Travelocity, as well as leading a significant sale of Simply Business.

Additionally, Stockwood said he no longer pushes for stronger wealth-tax measures, but he criticised wealthy individuals who seek to minimise their contributions to public finances. He suggested that those who prioritise tax avoidance lack commitment to their communities and the country’s long-term success.

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Italy becomes test case for WhatsApp AI chatbot monetisation

Meta has announced a new pricing model for third-party AI chatbots operating on WhatsApp, where regulators require the company to permit them, starting with Italy.

From 16 February 2026, developers will be charged about $0.0691 (€0.0572/£ 0.0572/£0.0498) per AI-generated response that’s not a predefined template.

This move follows Italy’s competition authority intervening to force Meta to suspend its ban on third-party AI bots on the WhatsApp Business API, which had taken effect in January and led many providers (like OpenAI, Perplexity and Microsoft) to discontinue their chatbots on the platform.

Meta says the fee applies only where legally required to open chatbot access, and this pricing may set a precedent if other markets compel similar access.

WhatsApp already charges businesses for ‘template’ API messages (e.g. notifications, authentication), but this is the first instance of explicit charges tied to AI responses, potentially leading to high costs for high-volume chatbot usage.

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French public office hit with €5 million CNIL fine after massive data leak

The data protection authority of France has imposed a €5 million penalty on France Travail after a massive data breach exposed sensitive personal information collected over two decades.

A leak which included social security numbers, email addresses, phone numbers and home addresses of an estimated 36.8 million people who had used the public employment service. CNIL said adequate security measures would have made access far more difficult for the attackers.

The investigation found that cybercriminals exploited employees through social engineering instead of breaking in through technical vulnerabilities.

CNIL highlighted the failure to secure such data breach requirements under the General Data Protection Regulation. The watchdog also noted that the size of the fine reflects the fact that France Travail operates with public funding.

France Travail has taken corrective steps since the breach, yet CNIL has ordered additional security improvements.

The authority set a deadline for these measures and warned that non-compliance would trigger a daily €5,000 penalty until France Travail meets GDPR obligations. A case that underlines growing pressure on public institutions to reinforce cybersecurity amid rising threats.

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Historic digital assets regulation bill approved by US Senate committee for the first time

The US Senate Agriculture Committee has voted along party lines to advance legislation on the cryptocurrency market structure, marking the first time such a bill has cleared a Senate committee.

The Digital Commodity Intermediaries Act passed with 12 Republicans voting in favour and 11 Democrats opposing, representing a significant development for digital asset regulation in the United States.

The legislation would grant the Commodity Futures Trading Commission new regulatory authority over digital commodities and establish consumer protections, including safeguards against conflicts of interest.

Chairman John Boozman proceeded with the bill after losing bipartisan support when Senator Cory Booker withdrew backing for the version presented. The Senate Banking Committee must approve the measure before the two versions can be combined and advanced to the Senate floor.

Democrats raised concerns about the legislation, particularly regarding President Donald Trump’s cryptocurrency ventures. Senator Booker stated the bill departed from bipartisan principles established in November, noting Republicans ‘walked away’ from previous agreements.

Democrats offered amendments to ban public officials from engaging in the crypto industry and to address foreign-adversary involvement in digital commodities. Still, all were rejected as outside the committee’s jurisdiction.

Senator Gillibrand expressed optimism about the bill’s advancement, whilst Boozman called the vote ‘a critical step towards creating clear rules’. The Senate Banking Committee’s consideration was postponed following opposition from the crypto industry, with no new hearing date set.

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Physical AI becomes central to LG’s robotics and automation ambitions

LG Group affiliates are expanding into physical AI by combining robotics hardware, industrial data, and advanced AI models. The strategy aims to deliver integrated autonomous systems across industries. The group is positioning itself along the complete robotics value chain.

LG Electronics is strengthening its role in robotic actuators that enable precise humanoid movement. Leveraging decades of motor engineering, it recently launched the AXIUM actuator brand. The company has also expanded its investments across robotics manufacturers.

The company’s AI Research division is working on programs that help machines understand the real world. Its special lab puts seeing and language skills into robots and factory systems. The aim is for machines to predict and act autonomously in real time.

The CNS division is teaching robots the skills they need for different jobs. LG Display is making robot screens using bendable panels that perform well in harsh environments. Both groups are using their cars’ and factories’ know-how to build robots.

Power and sensing tools complete the group’s robot plans. LG Energy Solution makes powerful batteries for moving robots, while LG Innotek creates cameras and sensors. Group leaders see building intelligent machines as key to future growth.

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Netherlands faces rising digital sovereignty threat, data authority warns

The Dutch data protection authority has urged the government to act swiftly to protect the country’s digital sovereignty, warning that dependence on overseas technology firms could expose vital public services to significant risk.

Concern has intensified after DigiD, the national digital identity system, appeared set for acquisition by a US company, raising questions about long-term control of key infrastructure.

The watchdog argues that the Netherlands relies heavily on a small group of non-European cloud and IT providers, and stresses that public bodies lack clear exit strategies if foreign ownership suddenly shifts.

Additionally, the watchdog criticises the government for treating digital autonomy as an academic exercise rather than recognising its immediate implications for communication between the state and citizens.

In a letter to the economy minister, the authority calls for a unified national approach rather than fragmented decisions by individual public bodies.

It proposes sovereignty criteria for all government contracts and suggests termination clauses that enable the state to withdraw immediately if a provider is sold abroad. It also notes the importance of designing public services to allow smooth provider changes when required.

The watchdog urges the government to strengthen European capacity by investing in scalable domestic alternatives, including a Dutch-controlled government cloud. The economy ministry has declined to comment.

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