ai

Blended finance drives Indonesia’s AI investment strategy

Indonesia is promoting blended finance as a key mechanism to meet the growing investment needs of AI and digital infrastructure. By combining public and private funding, the government aims to accelerate the development of scalable digital systems while aligning investments with sustainability goals and local capacity-building.

The rapid global expansion of AI is driving a sharp rise in demand for computing power and data centres. The government views this trend as both a strategic economic opportunity and a challenge that requires sound financial governance and well-designed policies to ensure long-term national benefits.

International financial institutions and global investors are increasingly supportive of public–private financing models. Such partnerships are seen as essential for mobilising large-scale, long-term capital and supporting the sustainable development of AI-related infrastructure in developing economies.

To attract sustained investment, the government is improving the overall investment climate through regulatory simplification, licensing reforms, integration of the Online Single Submission system, and incentives such as tax allowances and tax holidays. These measures are intended to support advanced technology sectors that require significant and continuous capital outlays.

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Generative AI targets antibiotic resistance with rapid drug design

At the World Economic Forum, scientists warned that deaths from drug-resistant ‘superbugs,’ microbes that can withstand existing antibiotics, may soon exceed fatalities from cancer unless new treatments are found.

To address this, companies like Basecamp Research have developed AI models trained on extensive genetic and biological data to accelerate drug discovery for complex diseases, including antibiotic resistance.

These AI systems can design novel molecules predicted to be effective against resistant microbes, with early laboratory testing showing a high success rate for candidates suggested by the models.

The technology enables a user to prompt the system to design entirely new molecular structures that bacteria have never encountered, potentially yielding treatments capable of combating resistant strains.

The approach reflects a broader trend in using AI for biomedical discovery, where generative models reduce the time and cost of identifying new drug candidates. While still early and requiring further validation, such systems could reshape how antibiotics are developed, offering new tools in the fight against antimicrobial resistance.

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New AI startup secures $5M to transform children’s digital learning

AI education start-up Sparkli has raised $5 million in seed funding to develop an ‘anti-chatbot’ AI platform to transform how children engage with digital content.

Unlike traditional chatbots that focus on general conversation, Sparkli positions its AI as an interactive learning companion, guiding kids through topics such as math, science and language skills in a dynamic, age-appropriate format.

The funding will support product development, content creation and expansion into new markets. Founders say the platform addresses increasing concerns about passive screen time by offering educational interactions that blend AI responsiveness with curriculum-aligned activities.

The company emphasises safe design and parental controls to ensure technology supports learning outcomes rather than distraction.

Investors backing Sparkli see demand for responsible AI applications for children that can enhance cognition and motivation while preserving digital well-being. As schools and homes increasingly integrate AI tools, Sparkli aims to position itself at the intersection of educational technology and child-centred innovation.

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New AI model uses abdominal scans to assess fall risk

Scientists and clinicians have created an AI model that can analyse routine abdominal imaging, such as CT scans, to identify adults at increased risk of future falls.

By detecting subtle patterns in body composition and muscle quality that may be linked to frailty, the AI system shows promise in augmenting traditional clinical assessments of fall risk.

Falls are a leading cause of injury and disability among older adults, and predicting who is most at risk can be challenging with standard clinical measures alone.

Integrating AI-based analysis with existing imaging data could enable earlier interventions, targeted therapies and personalised care plans, potentially reducing hospitalisations and long-term complications.

Although further validation is needed before routine clinical adoption, this research highlights how AI applications in medical imaging can extend beyond primary diagnosis to support predictive and preventative healthcare strategies.

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Hollywood figures back anti-AI campaign

More than 800 creatives in the US have signed an anti-AI campaign accusing big technology companies of exploiting human work. High-profile figures from film and television in the country have backed the initiative, which argues that training AI on creative content without consent amounts to theft.

The campaign was launched by the Human Artistry Campaign, a coalition representing creators, unions and industry groups in the country. Supporters say AI systems should not be allowed to use artistic work without permission and fair compensation.

Actors and filmmakers in the US warned that unchecked AI adoption threatens livelihoods across film, television and music. Campaign organisers said innovation should not come at the expense of creators’ rights or ownership of their work.

The statement adds to growing pressure on lawmakers and technology firms in the US. Creative workers are calling for clearer rules on how AI can be developed and deployed across the entertainment industry.

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Alaska student arrested after eating AI-generated art in protest

On 13 January 2026, Graham Granger, a film and performing arts major at the University of Alaska Fairbanks, was arrested and charged with criminal mischief after ripping AI-assisted artwork from a campus gallery wall and eating around 57 of the images as part of what he described as a protest and performance piece against the use of AI in art.

The destroyed exhibit, titled Shadow Searching: ChatGPT psychosis, was created by another student, Nick Dwyer, using AI to explore his personal experiences with the technology.

Dwyer criticised Granger’s actions as damaging to the artist’s work and initially considered pressing charges, though he later dropped those in favour of the state pursuing the case.

Granger defended his act as both protest and performance art, arguing that reliance on AI undermines human creativity and that the process of making art matters as much as the finished product. He said he did not regret the incident and saw it as a way to spark conversation about the role of AI in creative fields.

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Japan arrests suspect over AI deepfake pornography

Police in Japan have arrested a man accused of creating and selling non-consensual deepfake pornography using AI tools. The Tokyo Metropolitan Police Department said thousands of manipulated images of female celebrities were distributed through paid websites.

Investigators in Japan allege the suspect generated hundreds of thousands of images over two years using freely available generative AI software. Authorities say the content was promoted on social media before being sold via subscription platforms.

The arrest follows earlier cases in Japan and reflects growing concern among police worldwide. In South Korea, law enforcement has reported hundreds of arrests linked to deepfake sexual crimes, while cases have also emerged in the UK.

European agencies, including Europol, have also coordinated arrests tied to AI-generated abuse material. Law enforcement bodies say the spread of accessible AI tools is forcing rapid changes in forensic investigation and in the handling of digital evidence.

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Education for Countries programme signals OpenAI push into public education policy

OpenAI has launched the Education for Countries programme, a new global initiative designed to support governments in modernising education systems and preparing workforces for an AI-driven economy.

The programme responds to a widening gap between rapid advances in AI capabilities and people’s ability to use them effectively in everyday learning and work.

Education systems are positioned at the centre of closing that gap, as research suggests a significant share of core workplace skills will change by the end of the decade.

By integrating AI tools, training and research into schools and universities, national education frameworks can evolve alongside technological change and better equip students for future labour markets.

The programme combines access to tools such as ChatGPT Edu and advanced language models with large-scale research on learning outcomes, tailored national training schemes and internationally recognised certifications.

A global network of governments, universities and education leaders will also share best practices and shape responsible approaches to AI use in classrooms.

Initial partners include Estonia, Greece, Italy, Jordan, Kazakhstan, Slovakia, Trinidad and Tobago and the United Arab Emirates. Early national rollouts, particularly in Estonia, already involve tens of thousands of students and educators, with further countries expected to join later in 2026.

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WEF paper warns of widening AI investment gap

Policy-makers are being urged to take a more targeted approach to ‘sovereign AI’ spending, as a new paper released alongside the World Economic Forum meeting in Davos argues that no country can realistically build every part of the AI stack alone. Instead, the authors recommend treating AI sovereignty as ‘strategic interdependence’, combining selective domestic investment with trusted partnerships and alliances.

The paper, co-authored by the World Economic Forum and Bain & Co, highlights how heavily the United States and China dominate the global AI landscape. It estimates that the two countries capture around 65% of worldwide investment across the AI value chain, reflecting a full-stack model, from chips and cloud infrastructure to applications, that most other economies cannot match at the same scale.

For smaller and mid-sized economies, that imbalance can translate into a competitive disadvantage, because AI infrastructure, such as data centres and computing capacity, is increasingly viewed as the backbone of national AI capability. Still, the report argues that faster-moving countries can carve out a niche by focusing on a few priority areas, pooling regional capacity, or securing access through partnerships rather than trying to replicate the US-China approach.

The message was echoed in Davos by Nvidia chief executive Jensen Huang, who said every country should treat AI as essential infrastructure, comparable to electricity grids and transport networks. He argued that building AI data centres could drive demand for well-paid skilled trades, from electricians and plumbers to network engineers, framing the boom as a major job creator rather than a trigger for widespread job losses.

At the same time, the paper warns that physical constraints could slow expansion, including the availability of land, energy and water, as well as shortages of highly skilled workers. It also notes that local regulation can delay projects, although some industry groups argue that regulatory and cost pressures may push countries to innovate sooner in efficiency and greener data-centre design.

In the UK, industry body UKAI says high energy prices, limited grid capacity, complex planning rules and public scrutiny already create the same hurdles many other countries may soon face. It argues these constraints are helping drive improvements in efficiency, system design and coordination, seen as building blocks for more sustainable AI infrastructure.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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Tata’s $11 billion Innovation City plan gains global visibility at Davos

Tata Sons plans to invest $11 billion to build a large ‘Innovation City’ near the upcoming Navi Mumbai International Airport, according to Maharashtra Chief Minister Devendra Fadnavis, speaking at the World Economic Forum (WEF) in Davos. He said the project has drawn strong interest from international investors and will include major infrastructure upgrades alongside a data centre.

Fadnavis said the aim is to turn Mumbai and its wider region into a global, ‘plug-and-play’ innovation hub where companies can quickly set up and scale new technologies. He described the initiative as the first of its kind in India and said work is expected to begin within six to eight months.

The location next to the Adani Group–developed Navi Mumbai Airport is being positioned as an advantage, linking global connectivity with the high-tech industry. The project also reflects a broader global rush to expand data centres as companies roll out AI services, with firms such as Microsoft, Alphabet, and Amazon investing heavily in new capacity worldwide.

Maharashtra, which contributes more than 10 percent of India’s GDP and hosts the country’s financial capital, is also pushing a wider infrastructure drive, including a $30 billion plan to upgrade Mumbai. State leaders have framed these investments as part of an effort to boost growth and respond to economic pressures, including unemployment.

The Innovation City is expected to support India’s ambitions in AI and semiconductors, with national officials pointing to a public-private partnership approach rather than leaving development solely to big tech companies. Alongside this, the state is exploring energy innovation, including potential collaborations on small modular nuclear reactors, following recent legislative support for smaller-scale nuclear projects.

Taken together, the plan is being presented as a bid to attract global investment, accelerate high-tech development, and strengthen India’s role in emerging industrial and technology shifts centred on AI, advanced manufacturing, and digital infrastructure.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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