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France secures a €75 billion SoftBank investment for AI data centres

SoftBank Group has announced plans to develop and operate 5 GW of AI data centre capacity in France, representing an investment of up to €75 billion.

The commitment was announced at the 2026 Choose France summit and marks SoftBank Group’s largest AI infrastructure investment in Europe. The company said the project is designed to expand access to high-performance computing capacity and strengthen France’s role as a European hub for AI infrastructure.

The first phase includes an initial €45 billion investment to deliver 3.1 GW of AI data centre capacity in the Hauts-de-France region by 2031. Planned sites include Dunkirk, Bosquel, and Bouchain, with additional projects expected elsewhere in France.

The infrastructure is intended to support demand for high-performance computing from AI companies, cloud providers, enterprises, public institutions, and research organisations.

A major component of the initiative is a strategic industrial partnership with Schneider Electric. The companies will establish a large-scale industrial production cluster at the Port of Dunkirk focused on data centre infrastructure.

The cluster will include two facilities: one operated by SoftBank Group to manufacture enclosures, and one operated by Schneider Electric to integrate data centre power modules. The partnership will combine SoftBank’s robotics and automation capabilities with Schneider Electric’s energy technology expertise and local supply chain network.

SoftBank said the project is expected to create thousands of high-skilled jobs across data centre development, engineering, energy systems, robotics, operations, maintenance, and advanced manufacturing. The company also plans to support regional research and development through partnerships with universities, engineering schools, and training institutions.

Why does it matter?

SoftBank’s project would significantly expand Europe’s AI compute capacity at a time when data centres, energy infrastructure, and advanced manufacturing are becoming central to AI competitiveness. The investment also links digital sovereignty with industrial policy: France is not only seeking more AI computing infrastructure, but also a localised supply chain for data centre equipment, power systems, robotics, and technical skills.

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Japan finalises rules for cryptoasset service intermediaries

Japan’s Financial Services Agency has finalised regulatory amendments linked to the 2025 revision of the Payment Services Act, creating a new intermediary category for electronic payment instruments and cryptoasset services.

The amendments, which enter into force on 1 June 2026, establish rules for the newly created electronic payment instrument and cryptoasset service intermediary business. The framework sets out registration application requirements, information that must be clearly explained or provided to users, prohibited conduct, user protection measures, and record-keeping obligations.

The new category allows intermediaries to provide certain electronic payment instruments and cryptoasset-related services without operating as full electronic payment instrument service providers or cryptoasset exchange service providers. The structure is intended to support intermediary activity while maintaining user protection and oversight requirements.

The wider amendment package also develops rules for electronic payment instruments and cryptoassets, including the scope of assets that may be subject to domestic holding orders for electronic payment instrument service providers and cryptoasset exchange service providers.

The FSA also finalised related provisions on funds transfer services, banks, insurance companies and their subsidiaries, and other required amendments. Public consultation on the relevant cabinet orders, cabinet office orders, notices and guidelines drew 259 comments from 62 individuals and organisations.

The amendments form part of Japan’s ongoing effort to refine its digital finance framework as cryptoassets, stablecoin-related services, payment intermediaries, and traditional financial institutions become increasingly interconnected.

Why does it matter?

Japan’s new intermediary category shows how regulators are creating more tailored frameworks for different roles in digital asset services. Rather than treating every participant as a full exchange or electronic payment instrument service provider, the framework gives intermediaries a defined route into the market while preserving registration, conduct, disclosure, and user protection requirements.

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Brazil raises compliance bar for virtual asset companies

Brazil’s Central Bank has introduced a new requirement for virtual asset service providers seeking authorisation to operate in the country.

From 1 June 2026, companies applying to operate as sociedades prestadoras de serviços de ativos virtuais, or SPSAVs, must submit a reasonable assurance report issued by an independent auditor registered with Brazil’s securities regulator, the Comissão de Valores Mobiliários.

The audit requirement is intended to assess whether applicants have adequate compliance and control structures in place. Reviews will focus on anti-money laundering and counter-terrorist financing measures, including governance arrangements, client verification procedures, internal risk controls, and mechanisms to prevent misuse of virtual asset services.

The measure builds on Brazil’s broader virtual asset regulatory framework, established under Law No. 14,478 of 2022 and further developed through Central Bank resolutions issued in 2025. Those rules created a dedicated category for virtual asset service providers and placed their authorisation and supervision under the Central Bank.

The Central Bank said the new audit requirement is designed to strengthen security and efficiency in Brazil’s financial system while supporting the development of the country’s virtual asset market. The measure is also intended to align supervision with stronger standards for governance, transparency, internal controls, and financial crime prevention.

The additional requirement is expected to increase compliance costs for applicants, but it also signals that Brazil is moving towards more structured and bank-like oversight of crypto service providers.

Why does it matter?

Brazil’s move shows how crypto regulation is shifting from basic registration towards deeper supervisory checks. By requiring independent assurance over compliance controls before authorisation, the Central Bank is placing greater emphasis on AML/CFT, governance, client protection, and operational integrity. For virtual asset firms, market access will increasingly depend not only on business activity but also on whether internal controls can withstand external review.

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Australia’s CEDA event to examine AI-generated threats and trust

The Committee for Economic Development of Australia (CEDA) will host an event in Brisbane examining the impact of AI-generated scams, synthetic media and the challenge of maintaining trust in digital environments. The discussion will focus on the economic and reputational risks posed by deepfakes, voice cloning, phishing campaigns and fraudulent online services.

The event, titled ‘The scam economy: How to manage AI-generated threats and build trust’, will examine how businesses can maintain trust with stakeholders when visual, audio, and written material can be generated or manipulated using AI. It will bring together communications, cyber, technology, finance, and policy experts.

The discussion comes ahead of the entry into force of Australia’s Scams Prevention Framework Act 2025 on 1 July. Under the new framework, banks, telecommunications providers and digital platforms will be required to take proactive steps to prevent, detect and respond to scam activity.

CEDA says the event will explore how businesses can manage the economic risks of AI-generated fraud as synthetic media becomes more accessible and harder to identify. The programme will be held at Pullman King George Square in Brisbane.

Why does it matter?

Advances in generative AI are making it easier and cheaper to create convincing fake content, including images, videos, voices and websites. These tools are increasingly being used in fraud schemes that target consumers, businesses and public institutions.

As AI-generated deception becomes more sophisticated, organisations face growing challenges in maintaining trust, verifying authenticity and protecting users from scams. The discussion reflects broader efforts by governments and industry to adapt regulatory and security frameworks to emerging AI-related risks.

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Meta turns to subscriptions amid growing AI infrastructure costs

Meta has launched paid subscription plans for Facebook, Instagram and WhatsApp as part of a broader effort to diversify revenue beyond advertising. The new offerings form part of a subscription strategy called ‘Meta One‘.

Meta said the subscriptions include additional features for users, while separate premium offerings for creators, businesses and Meta AI users are currently being tested. The company indicated that these future services will also sit under the Meta One umbrella.

The announcement comes as Meta continues to increase spending on AI infrastructure. The company has projected capital expenditure of between USD 125 billion and USD 145 billion in 2026, much of it linked to AI data centres, increasing investor attention on how those investments will generate returns.

According to Euronews, Meta shares rose following the announcement. The company said subscription products will roll out globally, while some future Meta One offerings are expected to begin testing in selected markets outside the EU.

Why does it matter?

The launch of Meta One marks a further shift in Meta’s business strategy as the company looks to diversify revenue beyond digital advertising. Subscription services could provide new income streams while supporting investments in AI infrastructure and premium digital products.

The move also reflects a broader trend among technology companies seeking alternative business models as competition intensifies and AI development costs continue to rise.

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OECD links AI openness to innovation and economic growth

The Organisation for Economic Co-operation and Development has published a discussion paper for the G7 on the potential economic and strategic benefits of AI openness.

The paper, prepared at the request of France’s 2026 G7 Presidency, is intended to inform discussions in the G7 Digital and Technology Working Group ahead of the G7 Digital and Technology Ministerial Meeting in Paris.

AI openness is defined by the OECD as the broad public availability and ease of access to key artefacts and documentation across the AI stack, including model weights and code, datasets, documentation, safety tooling, and compute resources. The paper examines how openness can affect economic outcomes, innovation dynamics, and national or regional AI ecosystems.

The OECD says open-weight AI models are becoming increasingly competitive with proprietary alternatives. According to the paper, open models achieve approximately 90% of the performance of closed models at launch, while often being available at significantly lower cost, resulting in a higher quality-to-price ratio.

The paper also finds a positive and statistically significant relationship between AI open-source activity and economic growth across the 33 countries analysed. Using GitHub contributions as a proxy for AI openness, the OECD says the evidence suggests the potential economic benefits of open-source AI activity.

Beyond economic performance, the OECD says AI openness can support stronger and more resilient national AI ecosystems by expanding access to models, data, and tools. Open approaches can shift value creation towards downstream layers of the AI stack, where start-ups, small and medium-sized enterprises, public institutions, and other actors can adapt systems to local or sector-specific needs.

The paper also links AI openness to technological sovereignty and strategic autonomy. It says local deployment and adaptation of models can help organisations and governments retain control over sensitive data, reduce dependence on external providers, and support transparency, auditability, and trust.

The OECD notes that the paper focuses on the benefits of AI openness, while potential risks and downsides fall outside its scope and are left for future research.

Why does it matter?

The paper adds economic and strategic arguments to the debate over open AI. For policymakers, openness is not only a technical design choice but a question of innovation diffusion, local value creation, competitiveness, and dependence on foreign providers. However, because the paper focuses mainly on benefits, its conclusions should be read alongside separate work on the safety, misuse, security, and governance risks of more open AI systems.

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Singapore and Japan launch mutual recognition of IoT cybersecurity labels

Singapore and Japan have launched mutual recognition of their cybersecurity labelling schemes for Internet of Things (IoT) under a Memorandum of Cooperation that entered into force on 1 June 2026. The arrangement covers Singapore’s Cybersecurity Labelling Scheme and Japan’s JC-STAR scheme.

The Memorandum of Cooperation was signed by Rahayu Mahzam, Singapore’s Minister of State for Digital Development and Information, and Ino Toshiro, Japan’s State Minister of Economy, Trade and Industry. The Cyber Security Agency of Singapore (CSA) and Japan’s Ministry of Economy, Trade and Industry agreed to recognise cybersecurity labels issued under either scheme.

IoT devices certified under either Japan’s JC-STAR scheme or Singapore’s Cybersecurity Labelling Scheme will be eligible for streamlined recognition in the other market. Covered products include smart home assistants, home automation and alarm systems, and IoT gateways and hubs that connect multiple devices.

Japan is the fifth country to establish such an arrangement with Singapore, following Finland, Germany, South Korea, and the United Kingdom. According to Singapore authorities, the arrangement is expected to support stronger cybersecurity practices for connected devices, reduce certification burdens for manufacturers, and increase consumer confidence in smart technologies.

The CSA launched the Cybersecurity Labelling Scheme in 2020. Since then, it has received applications for more than 1,000 products, including routers, smart lighting, and smart cameras.

Why does it matter?

Connected devices are increasingly used in homes, businesses, and critical services, making cybersecurity a growing concern for governments and consumers. Cybersecurity labelling schemes are designed to help buyers identify products that meet recognised security requirements while encouraging manufacturers to improve security practices.

By recognising each other’s certification schemes, Singapore and Japan are reducing regulatory barriers and promoting greater interoperability in cybersecurity standards. The agreement also reflects broader international efforts to strengthen trust and security in the rapidly expanding IoT ecosystem.

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China showcases AI innovation and global cooperation at World Intelligence Expo 2026

The 2026 World Intelligence Expo has opened in Tianjin, bringing together more than 700 exhibitors to present AI technologies, products, and application scenarios.

The four-day event is co-hosted by the municipal governments of Tianjin and Chongqing under the theme ‘Intelligence: Extensive Development Space, Sustainable Growth Driver’. It features seven exhibition zones covering embodied AI, core AI technologies, the low-altitude economy, commercial space exploration, and other emerging technology areas.

Chinese officials used the event to emphasise the integration of AI into manufacturing, industrial operations, and the broader digital economy. Ke Jixin, Vice Minister of Industry and Information Technology, said the ministry would advance the ‘AI+ manufacturing’ initiative, strengthen innovation capabilities, and improve the industrial environment for AI development.

A major focus of the expo is developing high-quality datasets to support intelligent manufacturing. Liu Liehong, head of the National Data Administration, said China would support industry leaders and pilot entities in building sector-specific datasets in areas including automobile manufacturing, shipbuilding, rail transit, non-ferrous metals, and petrochemicals.

The event also highlighted China’s interest in expanding international AI cooperation. Chen Jiachang, Vice Minister of Science and Technology, said China is making AI a priority in bilateral and multilateral technology cooperation, including capacity development.

Representatives from countries including the United Arab Emirates and Kazakhstan discussed potential cooperation with China across AI, advanced technologies, the digital economy, the internet of things, fintech, medical technology, and software.

More than 200 new products, technologies, achievements, and research reports are expected to be released during the expo, covering embodied AI, intelligent connected vehicles, the low-altitude economy, smart manufacturing, and smart living.

Why does it matter?

The expo reflects China’s effort to position AI as a driver of industrial upgrading, manufacturing competitiveness, and digital economic growth. The focus on sector-specific datasets is particularly important because data infrastructure is becoming a core part of AI industrial policy. The international cooperation messaging also shows how China is using AI events to strengthen technology partnerships and capacity-building ties, especially with countries interested in smart cities, fintech, healthcare technology, and digital infrastructure.

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ECB cautions that stablecoins could affect monetary sovereignty

Stablecoins could enable faster payments, lower transaction costs, and more efficient settlement, but may also create risks for financial stability, monetary policy, and monetary sovereignty, according to European Central Bank Executive Board member Isabel Schnabel.

Speaking at the Bank of Korea International Conference on Central Banks and the Future of Money, Schnabel compared the rise of stablecoins with the earlier emergence of money market funds. Both offer alternatives to traditional bank deposits and operate outside the banking system, but stablecoins also function as payment and settlement tools.

Schnabel said stablecoins could contribute to a new wave of bank disintermediation if households and firms replace bank deposits with stablecoin holdings. That could make banks more reliant on wholesale funding and leave their liabilities more concentrated, rate-sensitive, and volatile.

Financial stability risks remain a key concern. Stablecoins can be vulnerable to runs if confidence in their reserve assets weakens, while large-scale redemptions could trigger fire sales or spillovers into sovereign debt and broader fixed-income markets. Schnabel noted that the largest US dollar-pegged stablecoins are now approaching the size of the largest US money market funds.

Stablecoins may also affect monetary policy transmission. Their wider adoption could change bank funding conditions, influence demand for short-term government securities, and create uncertainty over how policy rate changes pass through to financial conditions and the real economy.

Schnabel also warned that stablecoins could further strengthen the US dollar’s international role. Most stablecoins in circulation are dollar-denominated, and wider use could deepen dollar-based payment and settlement networks, particularly in jurisdictions with weaker monetary credibility.

The ECB sees regulation, digital payment infrastructure, and central bank digital currency as part of the response. Schnabel said the Eurosystem’s strategy includes a digital euro for retail payments and tokenised central bank money for wholesale settlement, preserving central bank money as the anchor of trust while supporting private innovation.

Why does it matter?

The speech frames stablecoins as a question of monetary architecture, not only crypto-market innovation. If stablecoins become widely used for payments and settlement, they could shift deposits away from banks, affect monetary policy transmission, create new run risks, and reinforce dollar-based financial networks. For central banks, the policy challenge is to support innovation while ensuring that public money remains the trusted settlement anchor of the financial system.

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OECD examines local conditions for trustworthy AI transition

The OECD is advancing work on AI and the local conditions needed for a trustworthy, ethical, and sustainable transition, focusing on how countries, regions, and cities can develop AI solutions adapted to local needs.

The project, ‘Seizing the full potential of AI: the local factor’, examines how AI is affecting business functions, public governance, jobs, labour markets, and regional economies. The OECD says generative AI has lowered some barriers to adoption by enabling the use of pre-trained models, but uptake remains uneven across places, people, and firms.

The organisation links stronger AI adoption to innovation-leading regions, especially global technology hubs connected to specialised knowledge networks and global value chains. Regions with weaker innovation performance appear to use AI less and adopt it more slowly, while workforce skills act as both an enabler and a barrier to adoption.

The OECD warns that uneven diffusion could affect competitiveness and territorial cohesion, particularly because technology gaps can be difficult to close once they widen. Businesses, regional governments, and cities also face challenges in integrating AI into legacy systems, adapting labour markets, revising skills and employment policies, financing the transition, and managing risks linked to employment, the environment, land use, and natural resources.

The project focuses on place-based AI strategies, local employment and skills needs, regional development policy, and smart and inclusive cities. Its work aims to help national and subnational policymakers assess AI readiness, strengthen stakeholder engagement, and build the policy capacity needed to support broader AI diffusion.

Why does it matter?

The OECD’s work highlights a key risk in AI adoption: technological divides may become territorial divides. If leading innovation hubs move faster while weaker regions lack skills, infrastructure, financing, or institutional capacity, AI could widen gaps in competitiveness, public service quality, and labour market outcomes. Place-based AI strategies can help policymakers tailor adoption, skills, and investment policies to local conditions rather than relying on one-size-fits-all national approaches.

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