Key Internet developments

Policy hackathon shapes OpenAI proposals ahead of EU AI strategy

OpenAI has published 20 policy proposals to speed up AI adoption across the EU. Released shortly before the European Commission’s Apply AI Strategy, the report outlines practical steps for member states, businesses, and the public sector to bridge the gap between ambition and deployment.

The proposals originate from Hacktivate AI, a Brussels hackathon with 65 participants from EU institutions, governments, industry, and academia. They focus on workforce retraining, SME support, regulatory harmonisation, and public sector collaboration, highlighting OpenAI’s growing policy role in Europe.

Key ideas include Individual AI Learning Accounts to support workers, an AI Champions Network to mobilise SMEs, and a European GovAI Hub to share resources with public institutions. OpenAI’s Martin Signoux said the goal was to bridge the divide between strategy and action.

Europe already represents a major market for OpenAI tools, with widespread use among developers and enterprises, including Sanofi, Parloa, and Pigment. Yet adoption remains uneven, with IT and finance leading, manufacturing catching up, and other sectors lagging behind, exposing a widening digital divide.

The European Commission is expected to unveil its Apply AI Strategy within days. OpenAI’s proposals act as a direct contribution to the policy debate, complementing previous initiatives such as its EU Economic Blueprint and partnerships with governments in Germany and Greece.

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OpenAI and AMD strike 6GW GPU deal to power next-generation AI infrastructure

AMD and OpenAI have announced a strategic partnership to deploy up to six gigawatts of AMD GPUs, marking one of the largest AI compute collaborations.

The multi-year agreement will begin with the rollout of one gigawatt of AMD Instinct MI450 GPUs in the second half of 2026, with further deployments planned across future AMD generations.

A deal that deepens a long-standing relationship between the two companies began with AMD’s MI300X and MI350X series.

OpenAI will adopt AMD as a core strategic compute partner, integrating its technology into large-scale AI systems and jointly optimising product roadmaps to support next-generation AI workloads.

To strengthen alignment, AMD has issued OpenAI a warrant for up to 160 million shares, with tranches vesting as the partnership achieves deployment and share-price milestones. AMD expects the collaboration to deliver tens of billions in revenue and boost its non-GAAP earnings per share.

AMD CEO Dr Lisa Su called the deal ‘a true win-win’ for both companies, while OpenAI’s Sam Altman said the partnership will ‘accelerate progress and bring advanced AI benefits to everyone faster’.

The collaboration positions AMD as a leading hardware supplier in the race to build global-scale AI infrastructure.

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Italy passes Europe’s first national AI law

Italy has become the first EU country to pass a national AI law, introducing detailed rules to govern the development and use of AI technologies across key sectors such as health, work, and justice.

The law, approved by the Senate on 17 September and in effect on 10 October, defines new national authorities responsible for oversight, including the Agency for Digital Italy and the National Cybersecurity Agency. Both bodies will supervise compliance, security, and responsible use of AI systems.

In healthcare, the law simplifies data-sharing for scientific research by allowing the secondary use of anonymised or pseudonymised patient data. New rules also ensure transparency and consent when AI is used by minors under 14.

The law introduces criminal penalties for those who use AI-generated images or videos to cause harm or deception. The Italian approach combines regulation with innovation, seeking to protect citizens while promoting responsible growth in AI development.

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A new AI strategy by the EU to cut reliance on the US and China

The EU is preparing to unveil a new strategy to reduce reliance on American and Chinese technology by accelerating the growth of homegrown AI.

The ‘Apply AI strategy’, set to be presented by the EU tech chief Henna Virkkunen, positions AI as a strategic asset essential for the bloc’s competitiveness, security and resilience.

According to draft documents, the plan will prioritise adopting European-made AI tools across healthcare, defence and manufacturing.

Public administrations are expected to play a central role by integrating open-source EU AI systems, providing a market for local start-ups and reducing dependence on foreign platforms. The Commission has pledged €1bn from existing financing programmes to support the initiative.

Brussels has warned that foreign control of the ‘AI stack’ (the hardware and software that underpin advanced systems) could be ‘weaponised’ by state and non-state actors.

These concerns have intensified following Europe’s continued dependence on American tech infrastructure. Meanwhile, China’s rapid progress in AI has further raised fears that the Union risks losing influence in shaping the technology’s future.

Several high-potential AI firms have already been hosted by the EU, including France’s Mistral and Germany’s Helsing. However, they rely heavily on overseas suppliers for software, hardware, and critical minerals.

The Commission wants to accelerate the deployment of European AI-enabled defence tools, such as command-and-control systems, which remain dependent on NATO and US providers. The strategy also outlines investment in sovereign frontier models for areas like space defence.

President Ursula von der Leyen said the bloc aims to ‘speed up AI adoption across the board’ to ensure it does not miss the transformative wave.

Brussels hopes to carve out a more substantial global role in the next phase of technological competition by reframing AI as an industrial sovereignty and security instrument.

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Atlantic Quantum joins Google Quantum AI to advance scalable quantum hardware

Google Quantum AI has taken a major step in its pursuit of error-corrected quantum computing by integrating Atlantic Quantum, an MIT spin-out focused on superconducting hardware.

The move, while not formally labelled an acquisition, effectively brings the startup’s technology and talent into Google’s programme, strengthening its roadmap toward scalable quantum systems.

Atlantic Quantum, founded in 2021, has worked on integrating qubits with superconducting control electronics in the same cold stage.

A modular chip stack that promises to simplify design, reduce noise, and make scaling more efficient. Everything is equally important to build machines capable of solving problems beyond the reach of classical computers.

Google’s Hartmut Neven highlighted the approach as a way to accelerate progress toward large, fault-tolerant devices.

The startup’s journey, from MIT research labs to Google integration, has been rapid and marked by what CEO Bharath Kannan called ‘managed chaos’.

The founding team and investors were credited with pushing superconducting design forward despite the immense challenges of commercialising such cutting-edge technology.

Beyond hardware, Google gains a strong pool of engineers and researchers, enhancing its competitive edge in a field where rivals include IBM and several well-funded scale-ups.

A move that reflects a broader industry trend where research-heavy startups are increasingly folded into major technology firms to advance long-term quantum ambitions. With governments and corporations pouring resources into the race, consolidation is becoming common.

For Atlantic Quantum, joining Google ensures both technological momentum and access to resources needed for the next phase. As co-founder Simon Gustavsson put it, the work ‘does not stop here’ but continues within Google Quantum AI’s effort to deliver real-world quantum applications.

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Germany invests €1.6 billion in AI but profits remain uncertain

In 2025 alone, €1.6 billion is being committed to AI in Germany as part of its AI action plan.

The budget, managed by the Federal Ministry of Research, Technology and Space, has grown more than twentyfold since 2017, underlining Berlin’s ambition to position the country as a European hub for AI.

However, experts warn that the financial returns remain uncertain. Rainer Rehak of the Weizenbaum Institute argues that AI lacks a clear business model, calling the current trend an ‘investment game’ fuelled by speculation.

He cautioned that if real profits do not materialise, the sector could face a bubble similar to past technology hype cycles. Even OpenAI chief Sam Altman has warned of unsustainable levels of investment in AI.

Germany faces significant challenges in computing capacity. A study by the eco Internet Industry Association found that the country’s infrastructure may only expand to 3.7 gigawatts by 2030, while demand from industry could exceed 12 gigawatts.

Deloitte forecasts a capacity gap of around 50% within five years, with the US already maintaining more than twenty times Germany’s capacity. Without massive new investments in data centres, Germany risks lagging further behind.

Some analysts believe the country needs a different approach. Professor Oliver Thomas of Osnabrück University argues that while large-scale AI models are struggling to find profitability, small and medium-sized enterprises could unlock practical applications.

He advocates for speeding up the cycle from research to commercialisation, ensuring that AI is integrated into industry more quickly.

Germany has a history of pioneering research in fields such as computer technology, MP3, and virtual and augmented reality, but much of the innovation was commercialised abroad.

Thomas suggests focusing less on ‘made in Germany’ AI models and more on leveraging existing technologies from global providers, while maintaining digital sovereignty through strong policy frameworks.

Looking ahead, experts see AI becoming deeply integrated into the workplace. AI assistants may soon handle administrative workflows, organise communications, and support knowledge-intensive professions.

Small teams equipped with these tools could generate millions in revenue, reshaping the country’s economic landscape.

Germany’s heavy spending signals a long-term bet on AI. But with questions about profitability, computing capacity, and competition from the US, the path forward will depend on whether investments can translate into sustainable business models and practical use cases across the economy.

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Grok controversies shadow Musk’s new Grokipedia project

Elon Musk has announced that his company xAI is developing Grokipedia, a planned Wikipedia rival powered by its Grok AI chatbot. He described the project as a step towards achieving xAI’s mission of understanding the universe.

In a post on X, Musk called Grokipedia a ‘necessary improvement over Wikipedia,’ renewing his criticism of the platform’s funding model and what he views as ideological bias. He has long accused Wikimedia of leaning left and reflecting ‘woke’ influence.

Despite Musk’s efforts to position Grok as a solution to bias, the chatbot has occasionally turned on its creator. Earlier this year, it named Musk among the people doing the most harm to the US, alongside Donald Trump and Vice President JD Vance.

The Grok 4 update also drew controversy when users reported that the chatbot praised and adopted the surname of a controversial historical figure in its responses, sparking criticism of its safety. Such incidents raised questions about the limits of Musk’s oversight.

Grok is already integrated into X as a conversational assistant, providing context and explanations in real time. Musk has said it will power the platform’s recommendation algorithm by late 2025, allowing users to customise their feeds dynamically through direct requests.

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OpenAI’s Sora app raises tension between mission and profit

The US AI company, OpenAI, has entered the social media arena with Sora, a new app offering AI-generated videos in a TikTok-style feed.

The launch has stirred debate among current and former researchers, some praising its technical achievement while others worry it diverges from OpenAI’s nonprofit mission to develop AI for the benefit of humanity.

Researchers have expressed concerns about deepfakes, addictive loops and the ethical risks of AI-driven feeds. OpenAI insists Sora is designed for creativity rather than engagement, highlighting safeguards such as reminders for excessive scrolling and prioritisation of content from known contacts.

The company argues that revenue from consumer apps helps fund advanced AI research, including its pursuit of artificial general intelligence.

A debate that reflects broader tensions within OpenAI: balancing commercial growth with its founding mission. Critics fear the consumer push could dilute its focus, while executives maintain products like ChatGPT and Sora expand public access and provide essential funding.

Regulators are watching closely, questioning whether the company’s for-profit shift undermines its stated commitment to safety and ethical development.

Sora’s future remains uncertain, but its debut marks a significant expansion of AI-powered social platforms. Whether OpenAI can avoid the pitfalls that defined earlier social media models will be a key test of both its mission and its technology.

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UK’s Stockton secures £100m AI data centre to strengthen local economy

A £100m AI data centre has been approved for construction on the outskirts of Stockton, with developers Latos Data Centres pledging up to 150 new jobs.

The Preston Farms Industrial Estate site will feature two commercial units, plants, substations and offices, designed to support the growing demands of AI and advanced computing.

Work on the Neural Data Centre is set to begin at the end of the year, with full operations expected by 2028. The project has been welcomed by Industry Minister and Stockton North MP Chris McDonald, who described it as a significant investment in skills and opportunities for the future.

Latos managing director Andy Collin said the facility was intended to be ‘future proof’, calling it a purpose-built factory for the modern digital economy. Local leaders hope the investment will help regenerate Teesside’s industrial base, positioning the region as a hub for cutting-edge infrastructure.

The announcement follows the UK government’s decision to create an AI growth zone in the North East, covering sites in Northumberland and Tyneside. Teesworks in Redcar was not included in the initial allocation, but ministers said further proposals from Teesside were still under review.

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Quantum leap as Caltech builds 6,100-qubit processor

A team of physicists at the California Institute of Technology has unveiled a quantum computing breakthrough, creating an array of 6,100 qubits, the largest of its kind to date.

The leap surpasses previous systems, which typically contained around a thousand qubits, and marks a step closer to practical quantum algorithms.

Researchers used caesium atoms as qubits, trapping them with laser tweezers inside an ultra-high-vacuum chamber.

These qubits maintained superposition for almost 13 seconds, nearly ten times longer than previous benchmarks. They could also be manipulated with 99.98 percent accuracy, proving that scaling up need not compromise precision.

Unlike classical bits, qubits exploit superposition, allowing a spread of probabilities instead of fixed binary states. It enables powerful computations but also demands error correction to overcome qubit fragility. The surplus qubits in this new array provide a path to large, error-corrected machines.

Physicists believe the next milestone will involve harnessing entanglement, enabling the shift from storing quantum information to processing it. If progress continues, quantum computers could soon revolutionise science by uncovering new materials, forms of matter, and fundamental laws of physics.

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