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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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Alibaba shares climb to highest since 2021

Alibaba’s $250 billion rebound has turned it into China’s hottest AI stock, with analysts saying the rally may still have room to run.

The group’s US-listed shares have more than doubled this year as Beijing pushes for greater technological self-reliance. Despite the surge, the stock remains 65% below its 2020 peak, keeping valuations attractive compared with US giants like Microsoft and Amazon.

Fund managers say global investors still hold relatively minor positions in Alibaba, creating scope for further gains. Some caution remains, however, with Chinese short bets rising last month and price wars in food delivery threatening to dent margins.

Alibaba trades roughly 22 times the estimated forward earnings in Hong Kong, which is in line with the Hang Seng Tech Index but below its historic peak and US peers. Investors say its valuation looks reasonable given its AI push and improving sentiment.

Shares touched their highest level since August 2021 on Friday, standing out against declines in the broader Hong Kong market. The key test will be whether Alibaba can convert its AI ambitions into mainstream revenues.

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Taiwan rejects US proposal on semiconductor production split

Taiwan has dismissed reports of a US plan to divide global semiconductor production evenly between the two sides. Vice Premier Cheng Li-chiun, returning from tariff talks in Washington, said her negotiating team had never discussed or agreed to a 50-50 split on chipmaking.

‘Rest assured, we did not discuss this issue during this round of talks, nor would we agree to such conditions,’ Cheng told reporters.

The clarification followed comments by US Commerce Secretary Howard Lutnick, who suggested Washington was seeking such an arrangement. Neither the US Department of Commerce nor the Office of the Trade Representative commented on the reports.

Taiwan, home to leading chipmaker TSMC, currently faces a 20% tariff on exports to the United States but hopes negotiations will lead to more favourable trade terms.

TSMC is already expanding production abroad with a $165 billion investment in factories in Arizona, though the majority of its output will remain in Taiwan. The government has emphasised that the ongoing trade talks with Washington have achieved ‘certain progress’ but remain focused on tariffs, not production quotas.

Separately, President Lai Ching-te met with US officials to discuss agricultural trade. Taiwan pledged to purchase $10 billion worth of American agricultural products, including soybeans, wheat, corn, and beef, over the next four years, signalling broader economic cooperation despite tensions over chips.

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Few Americans rely on AI chatbots for news

A recent Pew Research survey shows that relatively few Americans use AI chatbots like ChatGPT to get news. About 2 percent say they often get news this way, and 7 percent say they do so sometimes.

The majority of US adults thus do not turn to AI chatbots as a regular news source, signalling a limited role for chatbots in news dissemination, at least for now.

However, this finding is part of a broader pattern: despite the growing usage of chatbots, news consumption via these tools remains in the niche. Pew’s data also shows that 34 percent of US adults report using ChatGPT, which has roughly doubled since 2023.

While AI chatbots are not yet mainstream for news, their limited uptake raises questions about trust, accuracy and the user motivation behind news consumption.

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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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OpenAI deal boosts Etsy stock in dramatic market response

Etsy’s shares rose almost 16% on Monday following news that the platform is partnering with OpenAI to enable direct purchases through ChatGPT.

Under the new “Instant Checkout” feature, US ChatGPT users can purchase products directly from US Etsy sellers within the chatbot interface. OpenAI plans to bring more merchants, such as Shopify sellers, into the system soon.

The juxtaposition of AI and e-commerce signalled to markets a leap in monetisation potential for ChatGPT. Investors viewed the move as shifting ChatGPT from a content tool into a transactional platform. Shopify’s shares also saw gains.

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Google expands Search Live to US users

Google has expanded its Search Live feature to all app users in the US after several months of testing.

The tool allows people to hold voice conversations with AI Mode inside Google Search and even share a live camera feed. With this, the system can interpret surroundings, respond in real time, and suggest web links for deeper exploration.

The feature, powered by a customised version of Google’s Gemini chatbot, can run in the background while other apps are open. Google highlighted uses ranging from travel help to troubleshooting tasks.

Search Live is currently available only in English in the US. It can be enabled in the Google app by tapping the new Live icon or through Google Lens by selecting the Live button at the bottom of the screen.

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YouTube rolls back rules on Covid-19 and 2020 election misinformation

Google’s YouTube has announced it will reinstate accounts previously banned for repeatedly posting misinformation about Covid-19 and the 2020 US presidential election. The decision marks another rollback of moderation rules that once targeted health and political falsehoods.

The platform said the move reflects a broader commitment to free expression and follows similar changes at Meta and Elon Musk’s X.

YouTube had already scrapped policies barring repeat claims about Covid-19 and election outcomes, rules that had led to actions against figures such as Robert F. Kennedy Jr.’s Children’s Health Defense Fund and Senator Ron Johnson.

An announcement that came in a letter to House Judiciary Committee Chair Jim Jordan, amid a Republican-led investigation into whether the Biden administration pressured tech firms to remove certain content.

YouTube claimed the White House created a political climate aimed at shaping its moderation, though it insisted its policies were enforced independently.

The company said that US conservative creators have a significant role in civic discourse and will be allowed to return under the revised rules. The move highlights Silicon Valley’s broader trend of loosening restrictions on speech, especially under pressure from right-leaning critics.

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US military unveils automated cybersecurity construct for modern warfare

The US Department of War has unveiled a new Cybersecurity Risk Management Construct (CSRMC), a framework designed to deliver real-time cyber defence and strengthen the military’s digital resilience.

A model that replaces outdated checklist-driven processes with automated, continuously monitored systems capable of adapting to rapidly evolving threats.

The CSRMC shifts from static, compliance-heavy assessments to dynamic and operationally relevant defence. Its five-phase lifecycle embeds cybersecurity into system design, testing, deployment, and operations, ensuring digital systems remain hardened and actively defended throughout use.

Continuous monitoring and automated authorisation replace periodic reviews, giving commanders real-time visibility of risks.

Built on ten core principles, including automation, DevSecOps, cyber survivability, and threat-informed testing, the framework represents a cultural change in military cybersecurity.

It seeks to cut duplication through enterprise services, accelerate secure capability delivery, and enable defence systems to survive in contested environments.

According to acting CIO Kattie Arrington, the construct is intended to institutionalise resilience across all domains, from land and sea to space and cyberspace. The goal is to provide US forces with the technological edge to counter increasingly sophisticated adversaries.

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CISA highlights failures after US agency cyber breach

The US Cybersecurity and Infrastructure Security Agency (CISA) has published lessons from its response to a federal agency breach.

Hackers exploited an unpatched vulnerability in GeoServer software, gaining access to multiple systems. CISA noted that the flaw had been disclosed weeks earlier and added to its Known Exploited Vulnerabilities catalogue, but the agency had not patched it in time.

Investigators also found that incident response plans were outdated and had not been tested. The lack of clear procedures delayed third-party support and restricted access to vital security tools during the investigation.

CISA added that endpoint detection alerts were not continuously reviewed and some US public-facing systems had no protection, leaving attackers free to install web shells and move laterally through the network.

The agency urged all organisations to prioritise patching, maintain and rehearse incident response plans, and ensure comprehensive logging to strengthen resilience against future cybersecurity attacks.

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