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Europe expands tech scaleup funding with ETCI 2.0

The European Investment Bank (EIB) Group, EU governments and private institutional investors have launched the second phase of the European Tech Champions Initiative (ETCI), aiming to mobilise up to €80 billion for Europe’s technology scaleups.

Known as ETCI 2.0, the initiative aims to strengthen Europe’s late-stage investment ecosystem by creating a pan-European platform that helps highly innovative companies scale into global technology leaders. The announcement was made in Brussels on the sidelines of the ECOFIN meeting of EU finance ministers.

The first phase, launched in 2023, backed 15 mega-funds investing in European startups and contributed to the emergence of 12 EU-based unicorns. ETCI 2.0 will expand both the size and scope of the initiative with continued backing from EU governments and new participation from private institutional investors.

The new initiative aims to raise up to €15 billion, around four times the size of the original fund of funds, and is expected to mobilise as much as €80 billion in investment for more than 1,500 European scaleups.

The EIB Group plans to invest up to €1.25 billion into the fund. Final contributions from participating governments and investors are expected to be determined in the second half of 2026 during the initiative’s first closing.

For the first time, ETCI 2.0 will support both European mega-funds and mid-sized growth funds managing more than €300 million in assets. The initiative is expected to anchor more than 100 funds, including up to 45 mega-funds making average investments of around €200 million per company.

Private investors joining the initiative include AltamarCAM, Azimut Holding, Banco Santander, BBVA, Compagnia di San Paolo, Danske Bank and Green Arrow Capital, with more investors expected to join later.

The initiative will also establish a pan-European investment platform providing investors with access to European technology funds, market intelligence and ecosystem insights, supported by a dedicated digital engagement tool.

ETCI 2.0 is designed to complement national and European initiatives, including France’s Tibi initiative, Germany’s WIN initiative and the Scaleup Europe Fund. The EIB said the aim is to build a more federated European investment ecosystem and help European tech companies remain anchored in Europe.

Why does it matter?

Europe has long struggled to provide sufficient late-stage financing for high-growth technology companies, with many scaleups seeking capital from US investors or relocating abroad as they expand. ETCI 2.0 is designed to address that gap by combining public and private investment to strengthen Europe’s own growth capital ecosystem.

The initiative also reflects the EU’s broader push for technological sovereignty and economic competitiveness. By helping innovative companies remain headquartered and financed in Europe, ETCI 2.0 aims to retain strategic technologies, talent and intellectual property while building globally competitive European firms.

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Philippines uses AI and satellites to strengthen food security

The Philippine Department of Agriculture and the Philippine Statistics Authority are partnering to use AI and satellite technology to improve agricultural data collection, strengthen national food security and support more informed policymaking. Agriculture Secretary Francisco Tiu Laurel Jr. stated that enhanced data sharing between the two agencies would enable policymakers to make more informed decisions on food production, logistics and supply.

The Philippine Statistics Authority has begun piloting AI and satellite imagery to estimate crop production, building on approaches already used in several countries. National Statistician Claire Dennis Mapa said the technology would become more accurate as the Department of Agriculture expands field verification to validate satellite-generated data. The agencies also agreed to broaden the use of digital technologies in agricultural statistics and strengthen the capacity of local government units.

Agriculture Secretary Tiu Laurel also renewed calls to rebuild the department’s network of agricultural extension workers, describing them as its missing ‘boots on the ground’. Expanding the field workforce would support near real-time data collection, improve production forecasts and enable faster responses to challenges affecting farmers and fisherfolk. He also welcomed this year’s national census, saying updated population data would improve food demand forecasting.

The partnership aims to shift the Department of Agriculture from reactive to proactive food security management. Updated agricultural and population data will help the government better estimate future food demand, refine production targets and improve budget planning. According to Tiu Laurel, data should help policymakers anticipate future challenges rather than simply document past events in the Philippines.

Why does it matter?

The initiative illustrates how AI and Earth observation technologies are becoming practical tools for agricultural governance. More timely and accurate data can help governments improve production planning, respond more quickly to climate-related disruptions and strengthen long-term food security.

The partnership also highlights that digital transformation depends on both technology and institutional capacity. By combining AI, satellite imagery and field verification through agricultural extension workers, the Philippines is seeking to build a more reliable and responsive agricultural information system that could serve as a model for other countries facing similar food security challenges.

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ILO and EU deepen cooperation on AI and jobs

The International Labour Organization (ILO) and the European Commission have reaffirmed their strategic partnership, agreeing to strengthen cooperation on social justice, quality jobs and the human-centred governance of AI and digital transformation.

Against a backdrop of geopolitical uncertainty, climate change, demographic shifts and rapid technological change, the two organisations committed to ensuring that global transitions create inclusive labour markets and resilient economies.

Co-chaired by ILO Director-General Gilbert F. Houngbo and European Commission Executive Vice-President Roxana Mînzatu, the meeting agreed on a renewed cooperation agenda building on the 2021 Exchange of Letters between the two institutions.

Both organisations stressed that multilateral cooperation, international labour standards and social dialogue remain essential for addressing the challenges and opportunities created by AI, digitalisation and broader economic transformation.

AI and its impact on the future of work featured prominently in the discussions. Participants agreed that AI governance should remain human-centred, supporting the creation and preservation of decent jobs while strengthening labour market institutions.

The partners also highlighted the importance of international cooperation on AI governance, workforce skills and policies that help workers adapt to technological change rather than be displaced by it.

The meeting also covered trade, international partnerships and sustainable development. The ILO and the European Commission reaffirmed that trade policies should uphold international labour standards and improve working conditions throughout global supply chains.

They also agreed to deepen cooperation by combining the EU’s financial and policy instruments with the ILO’s expertise on labour standards, social protection, skills development and just transitions, reinforcing their shared objective of building more inclusive, resilient and sustainable economies.

Why does it matter?

The renewed partnership highlights how AI governance is becoming closely linked with employment and social policy. Rather than treating AI solely as a technology issue, the EU and ILO are framing it as a labour market challenge that requires international cooperation, workforce development and strong social protections.

The agreement also reinforces the growing role of international organisations in shaping a human-centred approach to AI. As governments seek to harness AI for economic growth, ensuring that technological change supports decent work, skills development and social inclusion is becoming an increasingly important part of global AI governance.

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Dutch government unveils plan to strengthen future workforce

The Dutch government has launched a national Talent Strategy to strengthen the country’s workforce and support future prosperity.

The strategy aims to attract, educate, and retain talent in areas considered crucial to the Netherlands’ economic growth, public services, and response to social challenges.

The government identifies four priority domains for investment: digitalisation and AI; security and resilience; energy and climate technology; and life sciences and biotechnology.

It says these are areas where the Netherlands has strengths in innovation and research, and where it wants to strengthen strategic autonomy.

The strategy responds to demographic pressure, skills mismatches and the need to make better use of scarce talent.

Planned measures include closer cooperation between the government, employers, workers, education institutions and other stakeholders.

The government also wants to improve training for priority sectors, expand lifelong learning and support smarter, more productive ways of working.

International recruitment will focus on targeted knowledge and expertise, while the government aims to reduce dependence on low-productivity labour migration.

The strategy forms part of the Ministerial Taskforce on Future Prosperity and Business Climate, with further policy updates expected in the coming months and a progress update by the end of 2026.

Why does it matter?

The strategy shows how workforce planning is becoming part of digital and industrial policy. By naming digitalisation and AI as one of four strategic domains, the Netherlands is linking talent development to competitiveness, strategic autonomy and long-term public-service capacity. The approach also reflects a wider European challenge: countries need enough specialised workers for AI and emerging technologies, while also expanding lifelong learning so existing workers are not left behind.

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IMF sees AI supporting global economic growth

The International Monetary Fund (IMF) has identified geopolitical tensions and rapid technological development as two of the main forces shaping the global economy. According to its latest World Economic Outlook Update, global growth is projected to reach 3.0% in 2026 before rising to 3.4% in 2027, with investment in AI and digital technologies supporting economic activity despite continued geopolitical uncertainty.

The report identifies AI as an increasingly important source of productivity growth and investment, particularly for economies integrated into technology supply chains. Countries involved in AI hardware, digital infrastructure and advanced technology exports are expected to benefit from rising demand.

At the same time, conflict in the Middle East continues to create uncertainty through higher energy prices, supply chain disruptions and inflationary pressures. The IMF expects global inflation to rise temporarily in 2026 before easing, although the pace of recovery is likely to vary across regions depending on their exposure to energy markets and technological capacity.

The IMF says governments should strengthen economic resilience by maintaining price stability, rebuilding fiscal buffers and supporting investment in digital infrastructure, energy security and AI adoption.

Why does it matter?

The outlook highlights how economic growth is increasingly being shaped by two competing forces: technological innovation and geopolitical instability. While AI investment is emerging as a driver of productivity and competitiveness, conflict and supply chain disruptions continue to create significant risks for the global economy.

The report also suggests that countries able to invest in AI, digital infrastructure and resilient supply chains may be better positioned to benefit from future growth. At the same time, uneven technological capacity and continued geopolitical uncertainty could widen economic disparities between regions.

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OpenAI launches GPT-Live-1 for ChatGPT Voice

OpenAI has launched GPT-Live-1, introducing a new voice experience in ChatGPT designed to make conversations feel more natural and responsive. The company is rolling out GPT-Live-1 for paid users and GPT-Live-1 mini for Free users.

The new models can listen and speak simultaneously, allowing users to interrupt, pause or continue speaking while ChatGPT responds. OpenAI says this improves turn-taking and makes voice interactions feel closer to a natural conversation.

GPT-Live-1 works within a standard ChatGPT conversation, with spoken responses appearing alongside streamed text. The model can also use web search and memory, display visual results through supported widgets, and work with text and images where those features are available.

OpenAI says GPT-Live is rolling out globally on ChatGPT.com and the ChatGPT iOS and Android apps. GPT-Live-1 will become the default voice model for Go, Plus and Pro users, while GPT-Live-1 mini will serve as the default for Free users.

At launch, GPT-Live is not available in ChatGPT Business, Enterprise or Edu workspaces. It also does not currently support video or screen sharing, although eligible users can continue using those features through Advanced Voice Mode where available.

OpenAI says GPT-Live-1 can hand more complex tasks to other models, such as GPT-5.5, when they require search, advanced reasoning or more agentic capabilities. The company also plans to make GPT-Live available through its API in the future.

Why does it matter?

GPT-Live-1 reflects OpenAI’s broader effort to make voice a core interface for interacting with AI rather than a separate feature. By combining real-time speech, streamed text, search, memory and visual results within a single conversation, the company is moving towards more seamless multimodal assistants capable of supporting everyday tasks, research and longer, more natural interactions.

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ILO urges skills investment as AI reshapes ASEAN workforce

The International Labour Organization (ILO) has published a report examining how generative AI (GenAI) is reshaping labour markets across the Association of Southeast Asian Nations (ASEAN).

The study estimates that nearly 80 million workers, representing 22.9% of total employment in the region, work in occupations with more than minimal potential exposure to GenAI. However, the ILO stresses that there is currently no evidence of large-scale job displacement.

Only 3.3% of ASEAN workers, around 11.7 million people, are employed in occupations with the highest level of GenAI exposure, while roughly two-thirds of employment remains in occupations with no identified exposure.

Employment in highly exposed occupations has continued to grow, suggesting that AI is transforming work rather than replacing jobs at scale. The report also notes that adoption remains concentrated in technology-intensive sectors and is still relatively limited in many administrative occupations despite their high exposure.

The report identifies significant differences across ASEAN economies. Singapore has the highest share of workers with more than minimal GenAI exposure at 42.2%, followed by the Philippines (28.1%), Indonesia (21.7%), Vietnam (20.8%), and Thailand (20.6%).

The ILO also highlights a notable gender gap, with women more than twice as likely as men to work in highly exposed occupations because they are more heavily represented in clerical, administrative and professional roles. By contrast, exposure levels are broadly similar across younger and older working-age groups.

To maximise the benefits of AI while limiting potential risks, the ILO calls for human-centred AI governance, expanded upskilling and reskilling programmes, stronger support for micro, small and medium-sized enterprises (MSMEs), and closer regional cooperation on skills development.

The report argues that future labour market outcomes will depend less on AI exposure itself than on policy choices that strengthen the preparedness and resilience of workers, businesses and institutions.

Why does it matter?

The report challenges the assumption that generative AI will rapidly eliminate large numbers of jobs across Southeast Asia. Instead, it suggests AI is more likely to reshape existing occupations, with the scale of change depending on how quickly workers, businesses and governments adapt.

The findings also highlight that AI adoption is ultimately a policy challenge as much as a technological one. Investments in skills, workforce transitions and responsible AI governance will play a decisive role in determining whether AI improves productivity and job quality or widens existing inequalities across the region.

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SpaceXAI launches Grok 4.5 for coding and agentic tasks

SpaceXAI has introduced Grok 4.5, its latest model for coding, agentic tasks and knowledge work.

The company describes Grok 4.5 as its most capable model to date, trained for real-world engineering, software development, science and mathematics tasks.

According to SpaceXAI, the model was trained across tens of thousands of NVIDIA GB300 GPUs, using data filtering, curation and reinforcement learning focused on multi-step technical work.

The company says Grok 4.5 can complete complex coding tasks and build functional applications from a single prompt.

Beyond software development, Grok 4.5 is designed to support knowledge-work tasks in Grok Build, including Excel modelling, PowerPoint slide design and Word document drafting.

SpaceXAI said the model serves up to 80 tokens per second and offers greater token efficiency than comparable leading models on selected tasks.

Grok 4.5 is available through Grok Build, Cursor and the SpaceXAI console. It is priced at $2 per million input tokens and $6 per million output tokens.

The company said Grok 4.5 is not yet available in the EU through its products or API console, with the EU availability expected in mid-July.

Why does it matter?

Grok 4.5 shows how frontier AI competition is moving towards practical agentic work, not only general chatbot performance. Coding, spreadsheet modelling, document creation and application-building are becoming key battlegrounds for AI providers targeting enterprise and professional users. The model’s pricing and claimed token efficiency also show growing pressure on AI companies to compete on cost and speed as much as benchmark performance.

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Swiss AI users report stronger workplace gains, Microsoft says

Swiss AI users are reporting stronger workplace productivity gains than their global peers, according to Microsoft’s 2026 Work Trend Index.

The company said 65% of AI users in Switzerland say they can now produce higher-value analytical and creative work that would not have been possible a year ago, compared with 58% globally.

The results point to a growing divide between organisations that introduce AI tools and those that redesign work around AI.

Among Swiss Frontier Professionals, defined by Microsoft as workers in organisations that embed AI into workflows and redesign how work gets done, 83% say AI has expanded the type of work they can produce.

Leadership alignment remains a challenge. Only 24% of Swiss AI users say their leaders are clearly and consistently aligned on AI strategy.

Microsoft said almost half of Swiss AI users feel it is safer to focus on current goals than to redesign workflows with AI in mind.

Swiss workers also emphasised human oversight. Some 84% treat AI output as a starting point rather than a final answer, while 46% identify quality control of AI output as a critical skill.

Microsoft said the next phase for Swiss organisations will involve moving from individual AI use to organisation-wide deployment, shared team capabilities and AI agents embedded in core workflows.

Why does it matter?

The Microsoft data suggests that workplace AI benefits depend less on tool availability and more on how organisations redesign workflows, train staff and set clear leadership priorities. The Swiss figures also show why human oversight remains central: productivity gains are linked to workers using AI as support, not as a replacement for judgement. For policymakers and employers, the broader issue is how to build AI skills and organisational capacity so productivity gains do not remain concentrated among the most advanced firms and workers.

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OECD report warns AI skills gaps could widen labour inequalities

The OECD has warned that stronger skills policies will be needed to prevent AI from widening labour-market inequalities.

In its policy paper Skills in the AI age, the organisation says AI can boost productivity, support economic growth and create new opportunities. Still, it may also deepen existing gaps if workers and firms are not prepared for the transition.

AI adoption by firms has accelerated rapidly in OECD countries, rising from around 7% to 20% of businesses between 2021 and 2025.

The OECD says the increase has been driven partly by the spread of generative AI tools such as ChatGPT and Copilot.

Adoption remains uneven. Larger firms and start-ups are more likely to use AI, while small and medium-sized enterprises face barriers including costs, infrastructure gaps and shortages of skilled workers.

The paper also cautions that exposure to AI does not automatically mean a job is likely to disappear.

High-skill occupations such as managers, professionals and engineers are among the most exposed to AI, but are less likely to be automated because they rely heavily on non-routine cognitive and social skills.

Low- and middle-skill roles involving routine manual or cognitive tasks face higher automation risks.

The OECD says workers will need a mix of foundational skills, ICT skills and complementary skills such as critical thinking, creativity and collaboration.

Advanced AI skills, including machine learning and data science, remain scarce, with workers possessing such skills accounting for around 1% of the workforce.

The organisation calls for stronger education and training systems, wider lifelong learning, AI literacy for all workers, employer-led training and better coordination between governments, industry and education providers.

Why does it matter?

The OECD report frames AI skills as a core labour-market issue, not only a technology-sector concern. If training systems do not adapt, AI adoption could widen gaps between large firms and SMEs, between high- and low-skilled workers, and between regions with different levels of digital capacity. The report also makes an important distinction for policy: jobs highly exposed to AI are not necessarily the jobs most likely to disappear, meaning governments need more targeted approaches to reskilling, worker support and AI literacy.

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