Qwen relaunch aims to unify Alibaba’s mobile AI ecosystem

Alibaba is preparing a major overhaul of its mobile AI apps, renaming Tongyi as Qwen and adding early agentic features. The update aims to make Qwen resemble leading chatbots while linking AI tools to Taobao and other services. Alibaba also plans a global version once the new design stabilises.

Over one hundred developers are working on the project as part of wider AI investments. Alibaba hopes Qwen can anchor its consumer AI strategy and regain momentum in a crowded market. It still trails Doubao and Yuanbao in user popularity and needs a clearer consumer path.

Monetisation remains difficult in China because consumers rarely pay for digital services. Alibaba thinks shopping features will boost adoption by linking AI directly to e-commerce use. Qwen will stay free for now, allowing the company to scale its user base before adding paid options.

Alibaba wants to streamline its overlapping apps by directing users to one unified Qwen interface. Consolidation is meant to strengthen brand visibility and remove confusion around different versions. A single app could help Alibaba stand out as Chinese firms race to deploy agentic AI.

Chinese and US companies continue to expand spending on frontier AI models, cloud infrastructure, and agent tools. Alibaba reported strong cloud growth and rising demand for AI products in its latest quarter. The Qwen relaunch is its largest attempt to turn technical progress into a viable consumer business.

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European Commission launches Culture Compass to strengthen the EU identity

The European Commission unveiled the Culture Compass for Europe, a framework designed to place culture at the heart of the EU policies.

An initiative that aims to foster the identity ot the EU, celebrate diversity, and support excellence across the continent’s cultural and creative sectors.

The Compass addresses the challenges facing cultural industries, including restrictions on artistic expression, precarious working conditions for artists, unequal access to culture, and the transformative impact of AI.

It provides guidance along four key directions: upholding European values and cultural rights, empowering artists and professionals, enhancing competitiveness and social cohesion, and strengthening international cultural partnerships.

Several initiatives will support the Compass, including the EU Artists Charter for fair working conditions, a European Prize for Performing Arts, a Youth Cultural Ambassadors Network, a cultural data hub, and an AI strategy for the cultural sector.

The Commission will track progress through a new report on the State of Culture in the EU and seeks a Joint Declaration with the European Parliament and Council to reinforce political commitment.

Commission officials emphasised that the Culture Compass connects culture to Europe’s future, placing artists and creativity at the centre of policy and ensuring the sector contributes to social, economic, and international engagement.

Culture is portrayed not as a side story, but as the story of the EU itself.

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Microsoft links datacentres into an AI superfactory

Microsoft has opened Fairwater, a new class of AI datacentres networked across the US. Atlanta began operating in October and links with the Wisconsin build to act as a single superfactory. The design targets faster training for models used by Microsoft, OpenAI and Copilot.

Fairwater sites pack hundreds of thousands of advanced GPUs with liquid cooling. Company materials highlight near-zero operational water use at Atlanta’s system and efficiency improvements in Wisconsin. Coverage confirms multi-site networking intended to accelerate model development.

Residents and experts voice concern over noise, power demand and water risks near proposed AI hubs. Georgia communities have pursued restrictions, citing environmental strain and rising utility bills, while Wisconsin groups demand transparency.

Microsoft expanded its Wisconsin investment and cancelled a separate Caledonia plan after severe local pushback. The Mount Pleasant project continues, with commitments on infrastructure costs and efficient cooling noted in filings and reports.

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AI tools deployed to set tailored attendance goals for English schools

England will introduce AI-generated attendance targets for each school, setting tailored improvement baselines based on the context and needs of each school. Schools with higher absence rates will be paired with strong performers for support. Thirty-six new Attendance and Behaviour Hubs will help drive the rollout.

Education Secretary Bridget Phillipson said raising attendance is essential for opportunity. She highlighted the progress made since the pandemic, but noted that variation remains too high. The AI targets aim to disseminate effective practices across all schools.

A new toolkit will guide schools through key transition points, such as the transition from Year 7 to Year 8. CHS South in Manchester is highlighted for using summer family activities to ease anxiety. Officials say early engagement can stabilise attendance.

CHS South Deputy Head Sue Burke said the goal is to ensure no pupil feels left out. She credited the attendance team for combining support with firm expectations. The model is presented as a template for broader adoption.

The policy blends AI analysis with pastoral strategies to address entrenched absence. Ministers argue that consistent attendance drives long-term outcomes. The UK government expects personalised targets and shared practice to embed lasting improvement.

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Language models mimic human belief reasoning

In a recent paper, researchers at Stevens Institute of Technology revealed that large language models (LLMs) use a small, specialised subset of their parameters to perform tasks associated with the psychological concept of ‘Theory of Mind’ (ToM), the human ability to infer others’ beliefs, intentions and perspectives.

The study found that although LLMs activate almost their whole network for each input, the ToM-related reasoning appears to rely disproportionately on a narrow internal circuit, particularly shaped by the model’s positional encoding mechanism.

This discovery matters because it highlights a significant efficiency gap between human brains and current AI systems: humans carry out social-cognitive tasks with only a tiny fraction of neural activity, whereas LLMs still consume substantial computational resources even for ‘simple’ reasoning.

The researchers suggest these points as a way to design AI models that are more brain-inspired, selectively activating only those parameters needed for particular tasks.

From a policy and digital-governance perspective, this raises questions about how we interpret AI’s understanding and social cognition.

If AI can exhibit behaviour that resembles human belief-reasoning, oversight frameworks and transparency standards become all the more critical in assessing what AI systems are doing, and what they are capable of.

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Private AI Compute by Google blends cloud power with on-device privacy

Google introduced Private AI Compute, a cloud platform that combines the power of Gemini with on-device privacy. It delivers faster AI while ensuring that personal data remains private and inaccessible, even to Google. The system builds on Google’s privacy-enhancing innovations across AI experiences.

As AI becomes more anticipatory, Private AI Compute enables advanced reasoning that exceeds the limits of local devices. It runs on Google’s custom TPUs and Titanium Intelligence Enclaves, securely powering Gemini models in the cloud. The design keeps all user data isolated and encrypted.

Encrypted attestation links a user’s device to sealed processing environments, allowing only the user to access the data. Features like Magic Cue and Recorder on Pixel now perform smarter, multilingual actions privately. Google says this extends on-device protection principles into secure cloud operations.

The platform’s multi-layered safeguards follow Google’s Secure AI Framework and Privacy Principles. Private AI Compute enables enterprises and consumers to utilise Gemini models without exposing sensitive inputs. It reinforces Google’s vision for privacy-centric infrastructure in cloud-enabled AI.

By merging local and cloud intelligence, Google says Private AI Compute opens new paths for private, personalised AI. It will guide the next wave of Gemini capabilities while maintaining transparency and safety. The company positions it as a cornerstone of responsible AI innovation.

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EU and Switzerland deepen research ties through Horizon Europe agreement

Switzerland has formally joined Horizon Europe, the EU’s flagship research and innovation programme, together with Digital Europe and the Euratom Research and Training Programme.

An agreement, signed in Bern by Commissioner Ekaterina Zaharieva and Federal Councillor Guy Parmelin, that grants Swiss researchers the same status as their EU counterparts.

They can now lead projects, receive EU funding, and access every thematic pillar, reinforcing cross-border collaboration in fields such as climate technology, digital transformation, and energy security.

The accord, effective from 1 January 2025, also enables Switzerland to become a member of Fusion for Energy in 2026, thereby integrating its researchers into ITER, the world’s largest fusion energy initiative.

Plans include Swiss participation in Erasmus+ from 2027 and in the EU4Health programme once a separate health agreement takes effect.

A development that forms part of a broader package designed to deepen EU–Swiss relations and modernise cooperation frameworks across science, technology, and education.

The European Commission reaffirmed its commitment to finalising ratification of all related agreements, ensuring long-term collaboration and strengthening Europe’s position as a global leader in innovation and research.

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AI-powered Google Photos features land on iOS, search expands to 100+ countries

Google Photos is introducing prompt-based edits, an ‘Ask’ button, and style templates across iOS and Android. In the US, iPhone users can describe edits by voice or text, with a redesigned editor for faster controls. The rollout builds on the August Pixel 10’s debut of prompt editing.

Personalised edits now recognise people from face groups, so you can issue multi-person requests, such as removing sunglasses or opening eyes. Find it under ‘Help me edit’, where changes apply to each named person. It’s designed for faster, more granular everyday fixes.

A new Ask button serves as a hub for AI requests, from questions about a photo to suggested edits and related moments. The interface surfaces chips that hint at actions users can take. The Ask experience is rolling out in the US on both iOS and Android.

Google is also adding AI templates that turn a single photo into set formats, such as retro portraits or comic-style panels. The company states that its Nano Banana model powers these creative styles and that templates will be available next week under the Create tab on Android in the US and India.

AI search in Google Photos, first launched in the US, is expanding to over 100 countries with support for 17 languages. Markets include Argentina, Australia, Brazil, India, Japan, Mexico, Singapore, and South Africa. Google says this brings natural-language photo search to a far greater number of users.

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€5.5bn Google plan expands German data centres, carbon-free power and skills programmes

Google will invest €5.5bn in Germany from 2026 to 2029, adding a Dietzenbach data centre and expanding its Hanau facility. It will expand offices in Berlin, Frankfurt, and Munich, and launch skilling and a first German heat-recovery project. Estimated impact: ~€1.016bn GDP and ~9,000 jobs annually.

Dietzenbach will strengthen German cloud regions within Google’s 42-region network, used by firms such as Mercedes-Benz. Google Cloud highlights Vertex AI, Gemini, and sovereign options for local compliance. Continued Hanau investment supports low-latency AI workloads.

Google and Engie will extend 24/7 Carbon-Free Energy in Germany through 2030, adding new wind and solar. The portfolio will be optimised with storage and Ørsted’s Borkum Riffgrund 3. Operations are projected to be 85% carbon-free in 2026.

A partnership with Energieversorgung Offenbach will utilise excess data centre heat to feed into Dietzenbach’s district network, serving over 2,000 households. Water work includes wetland protection with NABU in Hesse’s Büttelborn Bruchwiesen. Google reiterates its 24/7 carbon-free goal.

Office expansion includes Munich’s Arnulfpost for up to 2,000 staff, Frankfurt’s Global Tower space, and additional floors in Berlin. Local partnerships will fund digital skills and STEM programmes. Officials and customers welcomed the move for its benefits to infrastructure, sovereignty, and innovation.

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Banks and insurers pivot to AI agents at scale, Capgemini finds

Agentic AI is expected to deliver up to $450 billion in value by 2028, as financial institutions shift frontline processes to AI agents, according to Capgemini’s estimates. Banks start with customer service before expanding into fraud detection, lending, and onboarding, while insurers report similar priorities.

To seize the opportunity, 33% of banks are building agents in-house, while 48% of institutions are creating human supervisor roles. Cloud’s role is expanding beyond infrastructure, with 61% of executives calling cloud-based orchestration critical to scaling.

Adoption is accelerating but uneven. Four in five firms are in ideation or pilots, yet only 10% run agents at scale. Executives expect gains in real-time decision-making, accuracy, and turnaround, especially across onboarding, KYC, loan processing, underwriting, and claims.

Leaders also see growth levers. Most expect agents to support entry into new geographies, enable dynamic pricing, and deliver multilingual services that respect local norms and rules. Budgets reflect this shift, with up to 40% of generative AI spend already earmarked for agents.

Barriers persist. Skills shortages and regulatory complexity top the list of concerns, alongside high implementation costs. A quarter of firms are exploring ‘service-as-a-software’ models, paying for outcomes such as the resolution of fraud cases or the handling of customer queries.

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