Mistral AI expands European footprint with acquisition of Koyeb

Mistral AI has strengthened its position in Europe’s AI sector through the acquisition of Koyeb. The deal forms part of its strategy to build end-to-end capacity for deploying advanced AI systems across European infrastructure.

The company has been expanding beyond model development into large-scale computing. It is currently building new data centre facilities, including a primary site in France and a €1.2 billion facility in Sweden, both aimed at supporting high-performance AI workloads.

The acquisition follows a period of rapid growth for Mistral AI, which reached a valuation of €11.7 billion after investment from ASML. French public support has also played a role in accelerating its commercial and research progress.

Mistral AI now positions itself as a potential European technology champion, seeking to combine model development, compute infrastructure and deployment tools into a fully integrated AI ecosystem.

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WordPress.com integrates AI assistant into its editing workflow

Major updates to AI tooling are reshaping website creation as WordPress.com brings an integrated assistant directly into its editor.

The new system works within each site rather than relying on external chat windows, allowing users to adjust layouts, create content, and modify designs in real time. The tool is available to customers on Business and Commerce plans, although activation requires a manual opt-in.

The assistant appears across several core areas of the platform. Inside the editor, it can refine writing, modify styles, translate text and generate new sections with simple instructions.

In the Media Library, you can create new images or apply targeted edits through the platform’s in-house Nano Banana models, eliminating the need for separate subscriptions. Block notes provide an additional way to request suggestions, checks, or link-based context directly within each page.

The updates aim to make site building faster and more efficient by keeping all AI interactions within the existing workflow. Users who prefer a manual experience can ignore the feature entirely, since the assistant remains inactive unless deliberately enabled.

WordPress.com also notes that the system works best with block themes, although image tools are still available for classic themes.

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Rising DRAM prices push memory to the centre of AI strategy

The cost of running AI systems is shifting towards memory rather than compute, as the price of DRAM has risen sharply over the past year. Efficient memory orchestration is now becoming a critical factor in keeping inference costs under control, particularly for large-scale deployments.

Analysts such as Doug O’Laughlin and Val Bercovici of Weka note that prompt caching is turning into a complex field.

Anthropic has expanded its caching guidance for Claude, with detailed tiers that determine how long data remains hot and how much can be saved through careful planning. The structure enables significant efficiency gains, though each additional token can displace previously cached content.

The growing complexity reflects a broader shift in AI architecture. Memory is being treated as a valuable and scarce resource, with optimisation required at multiple layers of the stack.

Startups such as Tensormesh are already working on cache optimisation tools, while hyperscalers are examining how best to balance DRAM and high-bandwidth memory across their data centres.

Better orchestration should reduce the number of tokens required for queries, and models are becoming more efficient at processing those tokens. As costs fall, applications that are currently uneconomical may become commercially viable.

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China boosts AI leadership with major model launches ahead of Lunar New Year

Leading Chinese AI developers have unveiled a series of advanced models ahead of the Lunar New Year, strengthening the country’s position in the global AI sector.

Major firms such as Alibaba, ByteDance, and Zhipu AI introduced new systems designed to support more sophisticated agents, faster workflows and broader multimedia understanding.

Industry observers also expect an imminent release from DeepSeek, whose previous model disrupted global markets last year.

Alibaba’s Qwen 3.5 model provides improved multilingual support across text, images and video while enabling rapid AI agent deployment instead of slower generation pipelines.

ByteDance followed up with updates to its Doubao chatbot and the second version of its image-to-video tool, SeeDance, which has drawn copyright concerns from the Motion Picture Association due to the ease with which users can recreate protected material.

Zhipu AI expanded the landscape further with GLM-5, an open-source model built for long-context reasoning, coding tasks, and multi-step planning. The company highlighted the model’s reliance on Huawei hardware as part of China’s efforts to strengthen domestic semiconductor resilience.

Meanwhile, excitement continues to build for DeepSeek’s fourth-generation system, expected to follow the widespread adoption and market turbulence associated with its V3 model.

Authorities across parts of Europe have restricted the use of DeepSeek models in public institutions because of data security and cybersecurity concerns.

Even so, the rapid pace of development in China suggests intensifying competition in the design of agent-focused systems capable of managing complex digital tasks without constant human oversight.

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Parliament halts built-in AI tools on tablets and other devices over data risks

The European Parliament has disabled built-in AI features on tablets issued to lawmakers, citing cybersecurity and data protection risks. An internal email states that writing assistants, summarisation tools, and enhanced virtual assistants were turned off after security assessments.

Officials said some AI functions on tablets rely on cloud processing for tasks that could be handled locally, potentially transmitting data off the device. A review is underway to clarify how much information may be shared with service providers.

Only pre-installed AI tools were affected, while third-party apps remain available. Lawmakers were advised to review AI settings on personal devices, limit app permissions, and avoid exposing work emails or documents to AI systems.

The step reflects wider European concerns about digital sovereignty and reliance on overseas technology providers. US legislation, such as the Cloud Act, allows authorities to access data held by American companies, raising cross-border data protection questions.

Debate over AI security is intensifying as institutions weigh innovation against the risks of remote processing and granular data access. Parliament’s move signals growing caution around handling sensitive information in cloud-based AI environments.

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From Milan-Cortina to factory floors, AI powers Zhejiang manufacturing

As Chinese skater Sun Long stood on the Milan-Cortina Winter Olympics podium, the vivid red of his uniform reflected more than national pride. It also highlighted AI’s expanding role in China’s textile manufacturing.

In Shaoxing, AI-powered image systems calibrate fabric colours in real time. Factory managers say digital printing has lifted pass rates from about 50% to above 90%, easing longstanding production bottlenecks.

Tyre manufacturing firm Zhongce Rubber Group uses AI to generate multiple 3D designs in minutes. Engineers report shorter development cycles and reduced manual input across research and testing.

Electric vehicle maker Zeekr uses AI visual inspection in its 5G-enabled factory. Officials say tyre verification now takes seconds, helping eliminate assembly errors.

Provincial authorities in China report that large industrial firms are fully digitalized. Zhejiang plans to further integrate AI by 2027, expanding smart factories and industrial intelligence.

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Hollywood groups challenge ByteDance over Seedance 2.0 copyright concerns

ByteDance is facing scrutiny from Hollywood organisations over its AI video generator Seedance 2.0. Industry groups allege the system uses actors’ likenesses and copyrighted material without permission.

The Motion Picture Association said the tool reflects large-scale unauthorised use of protected works. Chairman Charles Rivkin called on ByteDance to halt what he described as infringing activities that undermine creators’ rights and jobs.

SAG-AFTRA also criticised the platform, citing concerns over the use of members’ voices and images. Screenwriter Rhett Reese warned that rapid AI development could reshape opportunities for creative professionals.

ByteDance acknowledged the concerns and said it would strengthen safeguards to prevent misuse of intellectual property. The company reiterated its commitment to respecting copyright while addressing complaints.

The dispute underscores wider tensions between technological innovation and rights protection as generative AI tools expand. Legal experts say the outcome could influence how AI video systems operate within existing copyright frameworks.

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UAE launches first AI clinical platform

A Pakistani American surgeon has launched what is described as the UAE’s first AI clinical intelligence platform across the country’s public healthcare system. The rollout was announced in Dubai in partnership with Emirates Health Services.

Boston Health AI, founded by Dr Adil Haider, introduced the platform known as Amal at a major health expo in Dubai. The system conducts structured medical interviews in Arabic, English and Urdu before consultations, generating summaries for physicians.

The company said the technology aims to reduce documentation burdens and cognitive load on clinicians in the UAE. By organising patient histories and symptoms in advance, Amal is designed to support clinical decision making and improve workflow efficiency in Dubai and other emirates.

Before entering the UAE market, Boston Health AI deployed its platform in Pakistan across more than 50 healthcare facilities. The firm states that over 30,000 patient interactions were recorded in Pakistan, where a local team continues to develop and refine the AI system.

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Quebec examines AI debt collection practices

Quebec’s financial regulator has opened a review into how AI tools are being used to collect consumer debt across the province. The Autorité des marchés financiers is examining whether automated systems comply with governance, privacy and fairness standards in Quebec.

Draft guidelines released in 2025 require institutions in Quebec to maintain registries of AI systems, conduct bias testing and ensure human oversight. Public consultations closed in November, with regulators stressing that automation must remain explainable and accountable.

Many debt collection platforms now rely on predictive analytics to tailor the timing, tone and frequency of messages sent to borrowers in Quebec. Regulators are assessing whether such personalisation risks undue pressure or opaque decision making.

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AI adoption reshapes UK scale-up hiring policy framework

AI adoption is prompting UK scale-ups to recalibrate workforce policies. Survey data indicates that 33% of founders anticipate job cuts within the next year, while 58% are already delaying or scaling back recruitment as automation expands. The prevailing approach centres on cautious workforce management rather than immediate restructuring.

Instead of large-scale redundancies, many firms are prioritising hiring freezes and reduced vacancy postings. This policy choice allows companies to contain costs and integrate AI gradually, limiting workforce growth while assessing long-term operational needs.

The trend aligns with broader labour market caution in the UK, where vacancies have cooled amid rising business costs and technological transition. Globally, the technology sector has experienced significant layoffs in 2026, reinforcing concerns about how AI-driven efficiency strategies are reshaping employment models.

At the same time, workforce readiness remains a structural policy challenge. Only a small proportion of founders consider the UK workforce prepared for widespread AI adoption, underscoring calls for stronger investment in skills development and reskilling frameworks as automation capabilities advance.

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