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Canada-EU digital partnership expands cooperation on AI and security

The European Union and Canada have strengthened their digital partnership during the first Digital Partnership Council in Montreal. Both sides outlined a joint plan to enhance competitiveness and innovation, while supporting smaller firms through targeted regulation.

Senior representatives reconfirmed that cooperation with like-minded partners will be essential for economic resilience.

A new Memorandum of Understanding on AI placed a strong emphasis on trustworthy systems, shared standards and wider adoption across strategic sectors.

The two partners will exchange best practices to support sectors such as healthcare, manufacturing, energy, culture and public services.

They also agreed to collaborate on large-scale AI infrastructures and access to computing capacity, while encouraging scientific collaboration on advanced AI models and climate-related research.

A meeting that also led to an agreement on a structured dialogue on data spaces.

A second Memorandum of Understanding covered digital credentials and trust services. The plan includes joint testing of digital identity wallets, pilot projects and new use cases aimed at interoperability.

The EU and Canada also intend to work more closely on the protection of independent media, the promotion of reliable information online and the management of risks created by generative AI.

Both sides underlined their commitment to secure connectivity, with cooperation on 5G, subsea cables and potential new Arctic routes to strengthen global network resilience. Further plans aim to deepen collaboration on quantum technologies, semiconductors and high-performance computing.

A renewed partnership that reflects a shared commitment to resilient supply chains and secure cloud infrastructure as both regions prepare for future technological demands.

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Japan aims to boost public AI use

Japan has drafted a new basic programme aimed at dramatically increasing public use of AI, with a target of raising utilisation from 50% to 80%. The government hopes the policy will strengthen domestic AI capabilities and reduce reliance on foreign technologies.

To support innovation, authorities plan to attract roughly ¥1 trillion in private investment, funding research, talent development and the expansion of AI businesses into emerging markets. Officials see AI as a core social infrastructure that supports both intellectual and practical functions.

The draft proposes a unified AI ecosystem where developers, chip makers and cloud providers collaborate to strengthen competitiveness and reduce Japan’s digital trade deficit. AI adoption is also expected to extend across all ministries and government agencies.

Prime Minister Sanae Takaichi has pledged to make Japan the easiest country in the world for AI development and use. The Cabinet is expected to approve the programme before the end of the year, paving the way for accelerated research and public-private investment.

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EU partners with EIB to support AI gigafactories

The European Commission and the European Investment Bank Group (EIB) have signed a memorandum of understanding to support the development of AI Gigafactories across the EU. The partnership aims to position Europe as a leading AI hub by accelerating financing and the construction of large-scale AI facilities.

The agreement establishes a framework to guide consortia responding to the Commission’s informal Call for Expression of Interest. EIB advisory support will help turn proposals into bankable projects for the 2026 AI Gigafactory call, with possible co-financing.

The initiative builds on InvestAI, announced in February 2025, mobilising €20 billion to support up to five AI Gigafactories. These facilities will boost Europe’s computing infrastructure, reinforce technological sovereignty, and drive innovation across the continent.

By translating Europe’s AI ambitions into concrete, large-scale projects, the Commission and the EIB aim to position the EU as a global leader in next-generation AI, while fostering investment and industrial growth.

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NVIDIA platform lifts leading MoE models

Frontier developers are adopting a mixture-of-experts architecture as the foundation for their most advanced open-source models. Designers now rely on specialised experts that activate only when needed instead of forcing every parameter to work on each token.

Major models, such as DeepSeek-R1, Kimi K2 Thinking, and Mistral Large 3, rise to the top of the Artificial Analysis leaderboard by utilising this pattern to combine greater capability with lower computational strain.

Scaling the architecture has always been the main obstacle. Expert parallelism requires high-speed memory access and near-instant communication between multiple GPUs, yet traditional systems often create bottlenecks that slow down training and inference.

NVIDIA has shifted toward extreme hardware and software codesign to remove those constraints.

The GB200 NVL72 rack-scale system links seventy-two Blackwell GPUs via fast shared memory and a dense NVLink fabric, enabling experts to exchange information rapidly, rather than relying on slower network layers.

Model developers report significant improvements once they deploy MoE designs on NVL72. Performance leaps of up to ten times have been recorded for frontier systems, improving latency, energy efficiency and the overall cost of running large-scale inference.

Cloud providers integrate the platform to support customers in building agentic workflows and multimodal systems that route tasks between specialised components, rather than duplicating full models for each purpose.

Industry adoption signals a shift toward a future where efficiency and intelligence evolve together. MoE has become the preferred architecture for state-of-the-art reasoning, and NVL72 offers a practical route for enterprises seeking predictable performance gains.

NVIDIA positions its roadmap, including the forthcoming Vera Rubin architecture, as the next step in expanding the scale and capability of frontier AI.

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Amazon rolls out Trainium3 AI chip to challenge Nvidia’s dominance

AWS has launched its in-house AI processor, Trainium3, marking a fresh push to compete with established players in the AI-hardware market. The chip and its associated UltraServer platform were unveiled at the launch event in Las Vegas.

According to Amazon, servers powered by Trainium3 deliver more than four times the performance of the previous generation while using around 40% less energy. Several AI firms, including startups working on large language models, are already utilising the new hardware to reduce their inference or training costs.

Looking ahead, AWS has signalled plans for a follow-up chip, Trainium4, which is expected to integrate with Nvidia’s NVLink Fusion interconnect technology. That would permit hybrid deployments combining Amazon’s ASICs with traditional GPUs, potentially appealing to AI workloads already built around Nvidia’s ecosystem.

The move highlights a broader trend: major tech firms are increasingly investing in their own AI infrastructure, aiming to reduce dependence on dominant vendors and lower costs. As AWS scales out its custom chips, the AI infrastructure market is poised to become more diverse with price-performance and energy efficiency as key differentiators, rather than raw hardware dominance alone.

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Singapore and the EU advance their digital partnership

The European Union met Singapore in Brussels for the second Digital Partnership Council, reinforcing a joint ambition to strengthen cooperation across a broad set of digital priorities.

Both sides expressed a shared interest in improving competitiveness, expanding innovation and shaping common approaches to digital rules instead of relying on fragmented national frameworks.

Discussions covered AI, cybersecurity, online safety, data flows, digital identities, semiconductors and quantum technologies.

Officials highlighted the importance of administrative arrangements in AI safety. They explored potential future cooperation on language models, including the EU’s work on the Alliance for Language Technologies and Singapore’s Sea-Lion initiative.

Efforts to protect consumers and support minors online were highlighted, alongside the potential role of age verification tools.

Further exchanges focused on trust services and the interoperability of digital identity systems, as well as collaborative research on semiconductors and quantum technologies.

Both sides emphasised the importance of robust cyber resilience and ongoing evaluation of cybersecurity risks, rather than relying on reactive measures. The recently signed Digital Trade Agreement was welcomed for improving legal certainty, building consumer trust and reducing barriers to digital commerce.

The meeting between the EU and Singapore confirmed the importance of the partnership in supporting economic security, strengthening research capacity and increasing resilience in critical technologies.

It also reflected the wider priorities outlined in the European Commission’s International Digital Strategy, which placed particular emphasis on cooperation with Asian partners across emerging technologies and digital governance.

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NVIDIA and Synopsys shape a new era in engineering

The US tech giant, NVIDIA, has deepened its long-standing partnership with Synopsys through a multi-year strategy designed to redefine digital engineering across global industries.

An agreement that includes a significant investment of two billion dollars in Synopsys shares and a coordinated effort to bring accelerated computing into every stage of research and development.

The aim is to replace slow, fragmented workflows with highly efficient engineering supported by GPU power, agentic AI and advanced physics simulation.

Research teams across semiconductor design, aerospace, automotive and industrial manufacturing continue to face rising complexity and escalating development costs. NVIDIA and Synopsys plan to respond by unifying their strengths, rather than relying on traditional CPU-bound methods.

NVIDIA’s accelerated computing platforms will connect with Synopsys tools to enable faster design, broader simulation capability and more precise verification. The collaboration extends to autonomous engineering through AI agents built on Synopsys AgentEngineer and NVIDIA’s agentic AI stack.

Digital twins stand at the centre of the new strategy. Accurate virtual models, powered through Omniverse and Synopsys simulation environments, will allow engineers to test and validate products in virtual space before physical production.

Cloud-ready access will support companies of all sizes, rather than restricting advanced engineering to large enterprises with specialised infrastructure. Both firms intend to promote adoption through a shared go-to-market programme.

The partnership remains open and non-exclusive, ensuring continued cooperation with the broader semiconductor and electronic design ecosystem.

NVIDIA and Synopsys expect accelerated engineering to reshape innovation cycles, offering a route to faster product development and more reliable outcomes across every primary technical sector.

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Baidu emerges as China’s AI chip leader

A key player is emerging in China’s AI chip market with Baidu’s Kunlunxin unit stepping in to fill the gap left by Nvidia due to US export restrictions.

The company plans a five-year roadmap for AI chips, beginning with the M100 in 2026 and the M300 in 2027, while already using its chips to run ERNIE AI models.

Strong domestic demand and shortages of AI chips among Chinese tech giants, such as Alibaba and Tencent, have created an opportunity for Baidu.

The company sells chips to third parties and rents computing capacity via its cloud, presenting itself as a full-stack AI provider with integrated infrastructure, models, and applications.

Analysts predict explosive growth for Baidu’s AI chip business, with sales expected to increase sixfold to 8 billion yuan ($1.1 billion) by 2026. Industry experts highlight that the timely delivery of competitive Kunlun chip generations could make Baidu a strategic supplier to the rest of China’s AI ecosystem.

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EU-South Korea digital partnership enhances collaboration

The European Union and the Republic of Korea strengthened their digital partnership during the third Digital Partnership Council meeting in Seoul, where both sides emphasised the value of deeper cooperation in advanced technologies.

The discussions focused on how joint research on semiconductors, 6G, AI and quantum technologies can support competitiveness and provide broader economic benefits.

Both sides agreed to continue collaborative work on semiconductor research to advance more efficient chips suitable for AI and automated mobility. Quantum research under Horizon Europe is set to expand through shared expertise and long-term cooperation.

Regulatory alignment on AI will progress through dialogue on conformity assessment results linked to the EU AI Act, supported by joint work on innovation, standardisation and safety evaluation.

Information exchange on emerging data spaces is also expected to grow, with both partners assessing whether a dedicated working group could enhance interoperability.

Cyber cooperation remains a priority, covering threat information sharing, software supply chain security and the safety of connected devices, combined with efforts to strengthen skills and explore new research.

Engagement in international standardisation bodies such as the International Telecommunications Union will continue to support broader global alignment. The two partners plan to meet again in Brussels in 2026 to assess progress.

The partnership reflects broader EU objectives in the Indo-Pacific and supports the goals of the International Digital Strategy.

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New budget signals Japan’s move to steady tech investment

Japan is moving ahead with an extra budget to support AI and semiconductor development. Officials say shifting funding into regular budgets will offer stability. Parliament is expected to approve the plan quickly after cabinet backing.

The government seeks stable support for industries crucial to economic security. The new budget adds to earlier investments in domestic chip production. Officials aim to avoid delays that have slowed previous industrial programmes.

Japan’s long-running strategy includes support for Rapidus, TSMC’s work in Kumamoto and Micron’s facility in Hiroshima. The extra funding is meant to complement these commitments. Stable annual financing is considered crucial for long-term planning.

A significant portion of the allocation is handled by the Ministry of Economy, Trade and Industry. The plan includes strengthening Nippon Export and Investment Insurance. The insurer is expected to back overseas projects under wider trade agreements.

Japan is also increasing support for critical mineral supplies. Funding will help secure rare earths and expand national stockpiles. Officials frame the combined measures as a shift toward steadier and more resilient investment.

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