Future of work

Global data center investment hits record $61bn

Investment in data centres worldwide reached a record $61bn in 2025, according to a new report from S&P Global. The surge is being driven by growing demand for AI workloads, with construction and expansion showing little sign of slowing.

Analysts describe the market as a ‘global construction frenzy’ as companies race to meet rising hardware and energy requirements.

The report highlights that investors, unable to buy existing facilities, are increasingly turning to new builds. The sector, with 500 data centres in the UK and 4,000 in the US, is projected to expand faster over the next five years than the previous five.

The AI boom is pushing energy- and computer-intensive workloads to new extremes.

Concerns are emerging about potential overspending in the AI sector. Analysts note that companies like OpenAI, Oracle, and Nvidia are investing heavily despite uncertain returns.

OpenAI is expected to spend $143bn from 2024 to 2029, prompting concerns over profitability while still holding potential for major innovations. The rapid expansion of data centres also carries significant energy implications.

The International Energy Agency forecasts data centre electricity demand could more than double by 2030, matching Japan’s current total consumption and underscoring the scale needed for AI growth.

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

xAI could reach AGI by 2026 as the AI race intensifies

Elon Musk has told xAI employees that the next two to three years will determine whether the company survives and emerges as a leading force in artificial general intelligence.

Speaking during a company-wide meeting, Musk argued that endurance during such a period could position xAI at the forefront of the AGI race.

Musk suggested that AGI could be achieved by xAI as early as 2026, pointing to rapid advances in the Grok model family. He has previously offered shifting timelines for AGI development, underscoring both technological momentum and persistent uncertainty surrounding the field.

The remarks come as competition across the AI sector intensifies, with OpenAI accelerating model releases and Google unveiling new iterations of its Gemini system. Against larger incumbents, xAI is positioning itself as a challenger focused on speed, scale and aggressive execution.

Central to that strategy is the Colossus project, which has already deployed around 200,000 GPUs and plans to expand to one million.

Musk also highlighted operational synergies with Tesla and SpaceX, while floating longer-term concepts such as space-based data centres, reinforcing xAI’s ambition to differentiate through scale and unconventional infrastructure.

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

Hedge funds and banks drive growth in crypto-ETF trading

The US crypto market saw a significant shift in 2024 as the Securities and Exchange Commission authorised the first crypto-asset-backed exchange-traded funds (ETFs).

Regulated ETFs allowed institutional investors, including hedge funds and banks, to invest in Bitcoin and Ether, with assets reaching USD 115 billion and USD 17 billion, respectively, by November 2025.

Nearly 2,000 institutional investors gained exposure to Bitcoin ETFs in 2024, accounting for approximately 30% of the market by year-end. Hedge funds and asset managers led investments, while major banks acted as market makers and asset managers, boosting crypto-ETF growth.

The SEC’s 2025 authorisation of direct crypto-asset exchanges between broker-dealers and ETF issuers also enhanced market efficiency. Institutions increasingly use futures contracts to leverage positions and arbitrage between spot ETFs and futures markets.

Hedge funds often hold short positions in futures to profit from price differences, while asset managers and pension funds maintain net long positions. ETFs provide greater liquidity and lower transaction costs compared with direct crypto holdings.

Systemic risk concerns grow as a few custodians, including Coinbase with 80% of crypto-assets, dominate the market. Volatility, liquidity gaps, and concentrated custody could transmit crypto shocks to the wider financial system, underscoring the need for regulatory oversight.

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

Ripple transforms cross-border payments with XRP

Cross-border payments have long struggled with delays and high costs, but networks like SWIFT could be transformed by systems that leverage blockchain. Ripple, launched by Ripple Labs in 2012, enables faster, more transparent, and cost-effective international transfers.

RippleNet, the company’s unified payment network, connects multiple banks via the interledger standard, removing intermediaries and enabling near-instant settlement. XRP, Ripple’s digital token, acts as a bridge currency to provide liquidity, though transactions can occur without it.

XRP boasts low fees, high scalability, and settlement times of just a few seconds.

Since its creation, Ripple has evolved from individual protocols to the unified RippleNet platform, supported by the XRPL Foundation. Unlike Bitcoin, XRP is premined and relies on a select group of validators, offering a different governance model and centralisation approach.

The network also supports broader financial applications, including central bank digital currencies, DeFi, and NFTs.

Despite its potential, investing in Ripple carries risks typical of crypto assets, including volatility, lack of regulation, and complexity. Investors are advised to research thoroughly and limit high-risk exposure to ensure a diversified portfolio.

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

Mac users lose ChatGPT voice access in 2026

OpenAI has confirmed that Voice interactions will stop working in the ChatGPT macOS app as of 15 January 2026, affecting users who rely on spoken conversations instead of typing.

The company states that the change is part of a broader effort to streamline voice experiences across its platforms.

Currently, the Mac app allows hands-free, real-time conversations with ChatGPT. After the deadline, voice functionality will remain accessible through chatgpt.com, as well as on iOS, Android, and the Windows app. OpenAI stresses that no other macOS features will be removed.

According to OpenAI, recent updates have already brought Voice mode closer to standard chat interactions on mobile and the web, allowing users to review earlier messages and engage with visual content while speaking.

The company has suggested that the existing macOS Voice feature may not support its next-generation approach.

Mac users will be able to continue using Voice mode until mid-January 2026. After this date, voice-based interactions will require switching to other supported platforms until a potential macOS update is introduced.

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

Civil servants and AI will work together in 2050

Public administrations worldwide are facing unprecedented change as AI reshapes automation, procurement, and decision-making. Governments must stay flexible, open, and resilient, preparing for multiple futures with foresight, continuous learning, and adaptability.

During World Futures Day, experts from the SPARK-AI Alliance and representatives from governments, academia, and the private sector explored four potential scenarios for public service in 2050.

Scenarios ranged from human-centred administrations that reinforce trust, to algorithmic bureaucracies focused on oversight, agentic administrations with semi-autonomous AI actors, and data-eroded futures that require renewed governance of poor-quality data.

Key insights highlighted the growing importance of anticipatory capacity, positioning AI as a ‘co-worker’ rather than a replacement, and emphasising the need to safeguard public trust.

Civil servants will increasingly focus on ethical reasoning, interpretation of automated processes, and cross-disciplinary collaboration, supported by robust accountability and transparent data governance.

The SPARK-AI Alliance has launched a Working Group on the Future of Work in the Public Sector to help governments anticipate and prepare for change. Its focus will be on building resilient public administrations, evolving civil-service roles, and maintaining trust in AI-enabled governance.

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

Bank of England governor warns AI could displace jobs at Industrial Revolution scale

Bank of England Governor Andrew Bailey said the widespread adoption of AI is likely to displace workers from existing roles, drawing parallels with the labour disruption caused by the Industrial Revolution.

He emphasised that while AI can boost productivity and economic growth, the UK must invest in training and education to help workers transition into jobs that are AI-enabled.

Bailey expressed particular concern about the impact on younger and inexperienced workers, warning that AI may reduce entry-level opportunities in sectors such as law, accountancy and administration. He noted that firms may hire fewer junior staff as AI systems replace routine data and document analysis.

Despite these risks, Bailey described AI as a potential driver of future UK growth, although he cautioned that productivity gains may take time to materialise.

He also stated that the Bank of England is experimenting with AI internally while monitoring concerns about a potential AI market bubble and the risks of a sharp valuation correction.

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

Dubai charities open doors to crypto donations

Dubai charities now accept donations in cryptocurrencies and virtual assets through a new service launched by the Islamic Affairs and Charitable Activities Department. The move signals a shift towards modernised fundraising channels across the emirate.

The service supports Dubai’s wider digital transformation strategy and aims to improve efficiency within the charitable donation ecosystem. Donors can now use globally recognised payment options, highlighting the rising use of virtual assets as valid financial tools.

Regulation remains central to the initiative, with IACAD introducing clear policies to protect donors, enhance transparency, and ensure compliance with approved standards. Introductory workshops have also been organised to guide charities through operational and procedural requirements.

Officials stressed that charities need preliminary authorisation to ensure donations are processed securely and in accordance with regulations. The initiative further reinforces Dubai’s ambition to lead in innovative and technology-driven humanitarian work.

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

UK report quantifies rapid advances in frontier AI capabilities

For the first time, the UK has published a detailed, evidence-based assessment of frontier AI capabilities. The Frontier AI Trends Report draws on two years of structured testing across areas including cybersecurity, software engineering, chemistry, and biology.

The findings show rapid progress in technical performance. Success rates on apprentice-level cyber tasks rose from under 9% in 2023 to around 50% in 2025, while models also completed expert-level cyber challenges previously requiring a decade of experience.

Safeguards designed to limit misuse are also improving, according to the report. Red-team testing found that the time required to identify universal jailbreaks increased from minutes to several hours between model generations, representing an estimated forty-fold improvement in resistance.

The analysis highlights advances beyond cybersecurity. AI systems now complete hour-long software engineering tasks more than 40% of the time, while biology and chemistry models outperform PhD-level researchers in controlled knowledge tests and support non-experts in laboratory-style workflows.

While the report avoids policy recommendations, UK officials say it strengthens transparency around advanced AI systems. The government plans to continue investing in evaluation science through the AI Security Institute, supporting independent testing and international collaboration.

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

Natural language meets robotics in MIT’s on-demand object creation system

MIT researchers have developed a speech-to-reality system that allows users to create physical objects by describing them aloud, combining generative AI with robotic assembly. The system can produce simple furniture and decorative items in minutes using modular components.

The workflow translates spoken instructions into a digital design using a large language model and 3D generative AI. The design is then broken into voxel-based parts and adapted to real-world fabrication constraints before being assembled by a robotic arm.

Researchers have demonstrated the system by producing stools, shelves, chairs, tables and small sculptures. The approach aims to reduce manufacturing complexity by enabling rapid construction without specialised knowledge of 3D modelling or robotics.

Unlike traditional fabrication methods such as 3D printing, which can take hours or days, the modular assembly process operates quickly and allows objects to be disassembled and reused. The team is exploring stronger connection methods and extensions to larger-scale robotic systems.

The research was presented at the ACM Symposium on Computational Fabrication in November. The team said the work points toward more accessible, flexible and sustainable ways to produce physical objects using natural language and AI-driven design.

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