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AI chip firm Groq lands $1.5 billion Saudi investment

Groq, a US semiconductor startup, has secured a $1.5 billion commitment from Saudi Arabia to expand its AI chip delivery. The Silicon Valley firm, founded by a former Alphabet engineer, specialises in AI inference chips designed for speed and efficiency in pre-trained model execution. A partnership with Aramco Digital has already established an AI hub in the region.

Funding will be received throughout the year to support the expansion of Groq’s data centre in Dammam. The company’s chips, used for chatbots and large language models, comply with US export regulations, with necessary licences already secured for shipments to Saudi Arabia.

The investment was announced at Saudi Arabia’s LEAP 2025 technology event, where the country confirmed $14.9 billion in new AI investments. Groq’s chips will help power the Dammam data centre, which will support Allam, a Saudi-developed AI language model operating in Arabic and English.

Groq reached a $2.8 billion valuation last August after raising $640 million in funding from Cisco Investments, Samsung Catalyst Fund, and BlackRock Private Equity Partners.

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Baidu’s Robin Li highlights ongoing need for cloud infrastructure investment

Baidu CEO Robin Li stated on Tuesday that investment in data centres and cloud infrastructure remains crucial despite the challenge posed by Chinese AI startup DeepSeek. Speaking at the World Government Summit in Dubai, Li emphasised that smarter AI models require increased computing power, or “compute,” to function effectively. His comments come as DeepSeek has gained attention for creating language models that perform similarly to OpenAI’s GPT while using much less computing power, prompting debate over the need for large-scale AI infrastructure.

Baidu, a key player in China’s AI development, was quick to launch its own AI products after the release of OpenAI’s ChatGPT in late 2022. However, its own language model, Ernie, has seen limited public adoption, despite claims that it rivals GPT-4 in capability. Li, who previously argued that no OpenAI-like company would emerge from China, admitted at the summit that innovation in AI is unpredictable, as shown by DeepSeek’s rapid rise.

In a shift from his earlier stance on AI development, Li acknowledged that open-source models could play a significant role in accelerating AI adoption. While he had previously advocated for closed-source approaches, he now recognises that allowing greater access could foster wider experimentation and faster technological spread. This marks a notable change in Baidu’s approach to the evolving AI landscape.

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Microsoft secures solar power deal with EDP renewables

Microsoft has deepened its commitment to clean energy by securing a long-term virtual power purchase agreement with EDP Renewables North America. As part of the deal, three large-scale solar projects in the United States will supply Microsoft with 389 megawatts of electricity and renewable energy credits. The agreement aligns with the tech giant’s push to power its expanding AI-driven data centres with sustainable energy sources.

The projects, located in Illinois and Texas, began operations between November and December last year. This includes a 140 MW solar installation in Jacksonville, a 110 MW site near Jerseyville, and a 150 MW park near Austin. EDP Renewables confirmed that this latest agreement brings its total number of operational projects with Microsoft in the US to five.

Big technology firms have significantly ramped up investments in renewable energy as they seek to offset the soaring electricity demand of AI infrastructure. Microsoft’s partnership with EDP Renewables marks another step towards the company’s sustainability targets, reinforcing its ambition to run entirely on renewable energy in the near future.

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France pushes AI ambitions with nuclear-powered edge

France is positioning itself as a major player in AI, with President Emmanuel Macron highlighting the country’s nuclear-powered advantage. Speaking at the AI Action Summit in Paris, he said France generates more electricity than it consumes, making it an ideal destination for energy-intensive AI companies.

Europe must act swiftly to remain competitive, according to Macron, who announced €109 billion in AI investments. He described the summit as a wake-up call for Europe, warning that the continent risks lagging behind the US and China. European Commission President Ursula von der Leyen is set to outline the EU’s AI strategy, aiming to simplify regulations, expand markets, and boost computing power.

The EU’s AI Act faces criticism for stifling innovation, with Macron calling for a balance between regulation and technological progress. He emphasised that AI should serve humanity while aligning with global standards. France will adopt a ‘Notre-Dame strategy’, aiming for rapid AI advancements, mirroring the country’s swift reconstruction of the cathedral after the 2019 fire.

European businesses were urged to prioritise local AI firms over foreign competitors. Macron argued that companies in the US, China, and India favour homegrown solutions and called for a similar approach in Europe. Strengthening domestic AI development, he said, would help the continent stay competitive in the rapidly evolving sector.

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EU seeks private investment for AI gigafactories

The European Union is looking to the private sector to help fund large-scale AI computing infrastructure, known as ‘AI Gigafactories,’ to support the development of advanced AI models. Speaking at the AI Action Summit in Paris, EU President Ursula von der Leyen emphasised the need for powerful computing resources to enable European startups to compete globally.

To accelerate AI adoption, the EU has pledged €50 billion in funding, adding to a €150 billion commitment from private sector companies under the EU AI Champions initiative. The goal is to mobilise €200 billion in total investment, making it the largest public-private partnership for AI development in the world.

With the US and China heavily investing in AI infrastructure, Europe is under pressure to keep pace. Von der Leyen argued that Europe’s collaborative approach to AI, focused on shared computing resources and federated data, could provide a competitive advantage. She stressed that AI Gigafactories would be accessible to researchers, startups, and industries, ensuring that Europe remains a key player in the AI race.

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JD Vance takes on Europe’s AI regulations in Paris

US Vice President JD Vance is set to speak at the Paris AI summit on Tuesday, where he is expected to address Europe’s regulation of artificial intelligence and the moderation of content on major tech platforms. As AI continues to grow, the global discussion has shifted from safety concerns to intense geopolitical competition, with nations vying to lead the technology’s development. On the first day of the summit, French President Emmanuel Macron emphasised the need for Europe to reduce regulatory barriers to foster AI growth, in contrast to the regulatory divergence between the US, China, and Europe.

Vance, a vocal critic of content moderation on tech platforms, has voiced concerns over Europe’s approach, particularly in relation to Elon Musk’s platform X. Ahead of his trip, he stressed that free speech should be a priority for the US under President Trump, suggesting that European content moderation could harm these values. While Vance’s main focus in Paris is expected to be Russia’s invasion of Ukraine, he will lead the American delegation in discussions with nearly 100 countries, including China and India, to navigate competing national interests in the AI sector.

Macron and European Commission President Ursula von der Leyen are also expected to present a new AI strategy, aimed at simplifying regulations and accelerating Europe’s progress. At the summit, Macron highlighted the region’s shift to carbon-free nuclear energy to meet the growing energy demands of AI. German Chancellor Olaf Scholz called on European companies to unite in strengthening AI efforts within the continent. Meanwhile, OpenAI CEO Sam Altman is scheduled to speak, following a significant bid from a consortium led by Musk to purchase OpenAI.

The summit also anticipates discussions on a draft statement proposing an inclusive, human rights-based approach to AI, with an emphasis on avoiding market concentration and ensuring sustainability for both people and the planet. However, it remains unclear whether nations will support this approach as they align their strategies.

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Rethinking AI regulation: Are new laws really necessary?

Specialised AI regulation may not be necessary, as existing laws already cover many aspects of AI-related concerns. Jovan Kurbalija, executive director of Diplo, argues in his blog that before enacting new AI-specific rules, society must assess whether current legal frameworks—such as consumer protection, data governance, and liability laws—can effectively regulate AI.

He draws historical parallels, citing the 4,000-year-old Code of Hammurabi as an example of legal accountability principles that remain relevant today. Kurbalija explains that legal systems have always adapted to technological advances without requiring entirely new legal categories.

He also highlights how laws governing property, commerce, and torts were successfully applied to the internet in the 1990s, suggesting that AI can be regulated similarly. Instead of focusing on abstract ethical discussions, he argues that enforcing existing legal frameworks will ensure accountability for AI developers and users.

The blog post also examines different layers of AI regulation, from hardware and data laws to algorithmic governance and AI applications. While AI-generated content has raised legal disputes over intellectual property and data use, these challenges, Kurbalija contends, should be addressed by refining current laws rather than introducing entirely new ones. He points to ongoing legal battles involving OpenAI, the New York Times, and Getty Images as examples of courts adapting existing regulations to the AI landscape.

Ultimately, Kurbalija asserts that AI is a tool, much like a hammer or a horse, and does not require its own distinct legal system. What matters most, he insists, is holding those who create and deploy AI accountable for its consequences. Society can effectively govern AI without requiring specialised regulations by reinforcing traditional legal principles such as liability, transparency, and justice.

France secures billions for AI expansion

France is set to receive an unprecedented €83 billion in AI-related investments, with Canadian firm Brookfield committing €20 billion by 2030. The majority of this funding will be allocated to data centres, including a massive one in Cambrai with a capacity of up to one gigawatt. This surge in investment follows the announcement of a €50 billion AI campus project between France and the UAE.

A key factor behind France’s appeal is its energy infrastructure. With 65% of its electricity generated from nuclear power and another 25% from renewables, the country offers a sustainable solution for tech companies seeking to reduce their carbon footprint. This has positioned France as an attractive location for power-intensive AI data centres.

Alongside international funding, France’s public investment bank Bpifrance has pledged €10 billion to support AI startups, while telecom giant Iliad is investing €3 billion in AI-focused infrastructure. With the AI Action Summit set to take place in Paris, more investment announcements could be on the horizon.

AI Action Summit in Paris shapes the future of AI amid divergent visions

World leaders gathered in Paris for the second day of the Artificial Intelligence (AI) Action Summit, where the focus turned to balancing national interests with global cooperation. Representatives from nearly 100 countries, including the US, China, and India, aimed to find common ground on sustainable AI development. However, questions lingered over whether the US would endorse a draft statement promoting an inclusive, human rights-based approach to AI.

French President Emmanuel Macron emphasised Europe’s commitment to clean energy as a cornerstone for AI growth, contrasting it with the US’s fossil fuel-driven strategy. ‘We won’t adopt a ‘drill, baby, drill’ policy,’ Macron said, ‘but instead ‘plug, baby, plug’ into our clean energy resources.’ This stance reflects Europe’s ambition to lead in sustainable AI innovation while addressing the technology’s massive energy demands.

Despite differing energy policies, there was consensus on one point: 2025 is not the year for new AI regulations. US President Donald Trump’s dismantling of his predecessor’s AI safeguards has influenced global perspectives, with Europe opting to streamline its regulations rather than impose new ones. European Commission President Ursula von der Leyen is set to unveil a new AI strategy to simplify rules, deepen the single market, and boost computing investments.

German Chancellor Olaf Scholz urged the EU companies to unite in a collective push for ‘AI made in Europe,’ signalling a desire for regional self-reliance in the face of global competition. Meanwhile, tech executives, including OpenAI CEO Sam Altman, joined the summit’s Business Day, highlighting the private sector’s role in shaping AI’s future. A consortium led by Elon Musk reportedly offered $97.4 billion to acquire the nonprofit overseeing OpenAI, though details remain unconfirmed.

US Vice President JD Vance added another layer of intrigue as the summit progressed. While his primary focus was expected to be AI, reports suggested he might also address the Russia-Ukraine conflict, and this shift in agenda underscores the complex interplay between technology and geopolitics at the summit.

The draft declaration, which calls for avoiding market monopolies and ensuring AI benefits people and the planet, remains a point of contention. While many nations support its principles, the US delegation has not confirmed its stance, casting doubt on the universal adoption of the declaration. Consequently, without unanimous backing, the summit risks failing to establish a unified, sustainable framework for AI’s global development.

Nokia appoints Justin Hotard as new CEO

Nokia has announced that Pekka Lundmark will step down as CEO, with Justin Hotard, currently EVP and GM of Intel’s Data Center & AI Group, set to take over the role on April 1. This leadership change is seen as part of Nokia’s strategic shift towards expanding into areas like AI and data centres, where the company is positioning itself for future growth. Hotard’s strong background in AI and technology is expected to drive Nokia’s focus on these emerging sectors.

The news has led to a 1.6% rise in Nokia’s shares, reflecting positive investor sentiment despite the surprise announcement. Analysts note that the appointment of Hotard suggests Nokia’s commitment to strengthening its network infrastructure unit, particularly as it looks to benefit from the surge in AI investments. This follows Nokia’s $2.3 billion acquisition of US optical networking firm Infinera, aimed at tapping into the growing data centre market.

Lundmark, who has been CEO since 2020, will remain with Nokia as an advisor to Hotard until the end of the year. Despite some initial denials about leadership changes, the company confirmed that the transition plan had been in place for some time, with Lundmark signalling his intention to step down once the business repositioning was more advanced.

Nokia’s infrastructure business, which includes AI-integrated systems for communication, and its mobile networks division, focusing on 5G technology, are both seen as key to the company’s future. While shares are up 27.85% over the past year, they remain significantly lower than their peak in 2000.