Innovation

South Korea to sharply increase spending to power AI-based growth

South Korea’s government has outlined a 2026 budget totalling 728 trillion won, a substantial 8.1 percent increase and the most significant rise in four years.

The new administration in South Korea, under President Lee Jae-myung, is using expansionary fiscal measures to drive innovation amid economic headwinds.

Research and development spending will see a record 19.3 percent jump to 35.3 trillion won, with AI receiving the steepest increase. Planned AI expenditure of 10.1 trillion won marks a threefold rise over 2025 and includes procuring 15,000 high-performance GPUs.

Industrial policy funding will grow by 14.7 percent, while social welfare and defence allocations also rise by over 8 percent. The fiscal deficit is expected to widen to 4.0 percent of GDP, with the public debt ratio forecast to reach 51.6 percent.

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Dell expands AI innovation hub in Singapore to drive regional growth

Dell Technologies has launched a new Asia Pacific and Japan AI Innovation Hub in Singapore, strengthening its role in advancing AI across the region.

The hub extends the company’s Global Innovation Hub, which has already received more than US$50 million in investment since 2019. Its focus is on driving AI transformation, enablement and leadership, in line with Singapore’s National AI Strategy 2.0.

Instead of offering only infrastructure, the hub delivers end-to-end support, from strategy to deployment, helping enterprises bridge the gap between ambition and practical results. Research shows 62% of Singaporean businesses prefer such holistic partnerships.

Since 2024, the hub has developed about 50 AI prototypes and carried out more than 100 proof-of-concepts, workshops and demonstrations across areas such as generative and predictive AI.

The projects have already influenced multiple sectors. In energy, AI solutions are strengthening infrastructure resilience and enhancing customer engagement with digital humans and chatbots.

In telecommunications, AI is supporting agility and operational efficiency, while in education, cloud-based technologies are empowering research and innovation.

Dell’s AI Centre of Excellence Lab further supports these initiatives by testing solutions for AI PCs and edge computing in collaboration with academic and hardware partners.

A strong emphasis is also placed on skills development. By the end of 2025, the hub aims to train around 10,000 students and mid-career professionals in AI engineering, platform engineering and related fields.

Working with 10 local institutes, Dell is addressing the talent shortage reported by nearly half of Singaporean organisations. Events such as the Dell InnovateFest and the Dell Innovation Challenge provide platforms for students and partners to showcase ideas and create solutions for social good.

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Google backs EU AI Code but warns against slowing innovation

Google has confirmed it will sign the European Union’s General Purpose AI Code of Practice, joining other companies, including major US model developers.

The tech giant hopes the Code will support access to safe and advanced AI tools across Europe, where rapid adoption could add up to €1.4 trillion annually to the continent’s economy by 2034.

Kent Walker, Google and Alphabet’s President of Global Affairs, said the final Code better aligns with Europe’s economic ambitions than earlier drafts, noting that Google had submitted feedback during its development.

However, he warned that parts of the Code and the broader AI Act might hinder innovation by introducing rules that stray from EU copyright law, slow product approvals or risk revealing trade secrets.

Walker explained that such requirements could restrict Europe’s ability to compete globally in AI. He highlighted the need to balance regulation with the flexibility required to keep pace with technological advances.

Google stated it will work closely with the EU’s new AI Office to help shape a proportionate, future-facing approach.

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AI regulation offers development opportunity for Latin America

Latin America is uniquely positioned to lead on AI governance by leveraging its social rights-focused policy tradition, emerging tech ecosystems, and absence of legacy systems.

According to a new commentary by Eduardo Levy Yeyati at the Brookings Institution, the region has the opportunity to craft smart AI regulation that is both inclusive and forward-looking, balancing innovation with rights protection.

Despite global momentum on AI rulemaking, Latin American regulatory efforts remain slow and fragmented, underlining the need for early action and regional cooperation.

The proposed framework recommends flexible, enforceable policies grounded in local realities, such as adapting credit algorithms for underbanked populations or embedding linguistic diversity in AI tools.

Governments are encouraged to create AI safety units, invest in public oversight, and support SMEs and open-source innovation to avoid monopolisation. Regulation should be iterative and participatory, using citizen consultations and advisory councils to ensure legitimacy and resilience through political shifts.

Regional harmonisation will be critical to avoid a patchwork of laws and promote Latin America’s role in global AI governance. Coordinated data standards, cross-border oversight, and shared technical protocols are essential for a robust, trustworthy ecosystem.

Rather than merely catching up, Latin America can become a global model for equitable and adaptive AI regulation tailored to the needs of developing economies.

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Qualcomm taps Vietnamese talent to push AI innovation

Qualcomm has acquired MovianAI, the generative AI division of Vietnam’s VinAI, in a move aimed at enhancing its capabilities across smartphones, PCs, and automotive technologies.

The US chipmaker described the acquisition as a strategic step to fuel future innovation in AI, with particular emphasis on customised models and advanced engineering.

MovianAI brings expertise in machine learning, computer vision, and natural language processing. Qualcomm highlighted the value of adding ‘high-calibre talent’ to its engineering team, with MovianAI’s founder and CEO Hung Bui, who previously worked at Google DeepMind, set to join the company.

Bui stated that his team is eager to contribute to Qualcomm’s mission of scaling foundational AI breakthroughs across industries.

Qualcomm has a two-decade history of working with Vietnamese companies, particularly in 5G, IoT, and AI development. While the financial terms of the deal remain undisclosed, Vietnamese outlet VNExpress International reported that Qualcomm has acquired a 65 per cent stake in MovianAI.

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AI Innovation in the UK Advances with new Google initiatives

Google is intensifying its investment in the UK’s AI sector, with plans to expand its data residency offerings and launch new tools for businesses.

At an event in London, Google’s DeepMind CEO Demis Hassabis and Google Cloud CEO Thomas Kurian unveiled plans to add Agentspace, Google’s platform for AI agents, to the UK’s data residency region.

However, this move will allow enterprises to host their AI agents locally, ensuring full control over their data.

In addition to the data residency expansion, Google announced new incentives for AI startups in the UK, offering up to £280,000 in Google Cloud credits for those participating in its accelerator programme.

These efforts come as part of a broader strategy to encourage businesses to adopt Google’s AI services over those of competitors. The company is also focusing on expanding AI skills training to help businesses better leverage these advanced technologies.

Google’s efforts align with the UK government’s push to strengthen its position in the global AI landscape. The government has been actively working to promote AI development, with a particular focus on building services that reduce reliance on big tech companies.

By bringing its latest AI offerings to the UK, Google is positioning itself as a key player in the country’s AI future.

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AI transforms fashion

London-based model Alexsandrah Gondora is now utilising an AI replica of herself for photo shoots, allowing designers and retailers to book her digital double without the need for her physical presence. This innovative approach not only saves time but also cuts down the costs traditionally associated with high-budget campaigns.

While this technology opens up endless creative possibilities, it has also sparked concerns among industry professionals. Critics fear that the widespread use of AI-generated images could eventually displace traditional models, not just in the UK, but globally. Replacing make-up artists, photographers, and even promote a homogenised standard of beauty.

Gondora, however, remains optimistic about the change, emphasising that she retains control over her digital likeness and benefits from the new model. The rise of such digital innovations is prompting calls for new regulations to ensure that models are fairly compensated and their rights protected in this evolving field.

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Japanese biohybrid hand breakthrough

Researchers from the University of Tokyo and Waseda University have developed the world’s largest biohybrid robot hand, which utilises cultivated human muscle tissue to perform complex movements. The 18-centimetre hand, complete with five individually moving fingers, incorporates a novel “sushi roll” design that bundles multiple thin muscle tissue strings to ensure sufficient nutrient supply and strength. Gold electrodes are employed to stimulate the tissues, translating straight muscle contractions into the rotational motion of the joints.

This innovative Japanese device is capable of delicate tasks such as grasping small objects, although its muscle tissues exhibit a decrease in force after approximately ten minutes of continuous action, recovering fully after an hour of rest. Such a breakthrough overcomes the limitations of earlier biohybrid devices, which were restricted to single-joint movements and were much smaller due to nutrient diffusion challenges in thicker muscle constructs.

Professor Shoji Takeuchi, specialising in mechanical engineering, believes that this research paves the way for the development of humanlike robots and precision prosthetic hands. The team’s findings, published in Science Robotics, mark a significant advance in the fusion of biological elements with mechanical systems, promising a future where robotics more closely mimic the capabilities of the human body.

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Tether partners with Guinea to boost blockchain adoption

Tether has signed an agreement with the government of Guinea to support economic growth and digital transformation through blockchain and peer-to-peer technology. The memorandum of understanding focuses on education, innovation, and sustainable technology, with Tether aiming to promote blockchain adoption in both public and private sectors. The partnership may also involve the City of Science and Innovation in Guinea.

Paolo Ardoino, CEO of Tether, stated that the initiative reflects the company’s commitment to helping nations build strong digital economies. He emphasised that blockchain solutions could play a key role in Guinea’s technological development, paving the way for economic progress.

Tether has been actively expanding its global presence through similar partnerships. It recently relocated its headquarters to El Salvador, the first country to adopt Bitcoin as legal tender, and has also collaborated with governments and organisations in Switzerland, Turkey, Uzbekistan, and Georgia. Additionally, the company has launched educational programmes in several countries to encourage broader blockchain adoption.

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Tether expands AI ambitions with new apps

Tether, the world’s largest stablecoin issuer, is diving deeper into the world of artificial intelligence (AI) with several new applications in development. Tether Data, the company’s AI division, is working on a range of tools including AI Translate, AI Voice Assistant, and AI Bitcoin Wallet Assistant. These apps will focus on maintaining the privacy and self-custodial control over both data and money, according to CEO Paolo Ardoino.

The AI Bitcoin Wallet Assistant will allow users to interact with a chatbot interface to manage their BTC wallet, such as checking their balance or making transactions. Meanwhile, the AI Translate tool provides simple chatbot-based translation, and the AI Voice Assistant will enable voice responses instead of text. Tether plans to launch an open-source AI SDK platform, compatible with various devices including mobile phones and laptops.

Tether’s commitment to AI growth has been evident since 2023, with the company acquiring a stake in Northern Data Group, a European crypto miner specialising in cloud computing and generative AI. The firm also began a global recruitment drive for AI talent in March 2023, intending to innovate and set new industry standards.

The firm has been making significant strides in both the AI and crypto industries, as it reported record profits of $13 billion for 2024, and its USDT stablecoin has seen an all-time high market capitalisation of $141 billion. Tether’s AI platform is expected to launch by the end of Q1 2025.