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Pax Silica expands with new AI partnership, supply chain initiatives, and workforce programme

The United States has announced a series of new initiatives under the Pax Silica partnership aimed at strengthening AI supply chain security, expanding international cooperation on AI, and supporting advanced manufacturing capabilities among participating economies.

The announcements were made following the 2026 Pax Silica Summit, the second meeting of the initiative launched by the US Department of State in December 2025. Pax Silica focuses on strengthening economic security and resilient supply chains across sectors, including semiconductors, critical minerals, advanced manufacturing, energy inputs, AI, and digital infrastructure, through cooperation among participating countries.

One of the summit’s principal outcomes was the signing of a Joint Statement on AI Opportunity by the United States and nearly three dozen partner economies. According to the US Department of State, the statement promotes a pro-innovation and pro-growth approach to AI governance while emphasising secure AI supply chains and support for startups, developers, and private-sector innovation. Signatories include countries from Europe, the Indo-Pacific, the Middle East, and Latin America, including Australia, Germany, India, Japan, the Republic of Korea, Singapore, the United Kingdom, and the United States.

The summit also expanded the Pax Silica partnership itself. Ten additional participants, including Argentina, Chile, Costa Rica, El Salvador, the European Union, Germany, Greece, Kazakhstan, the Netherlands, and Panama, joined the initiative, bringing the total number of signatories to 24. Taiwan continues to support the initiative’s principles through a separate joint statement on economic security cooperation with the United States.

Another announcement focused on strengthening the security and transparency of AI supply chains. The US Department of State plans to launch a competitive funding programme for a pilot AI Assistance Project in Panama to develop an AI supply chain credentialing and provenance platform. According to the Department, the proposed platform would integrate with customs authorities, ports, and logistics systems to help verify and facilitate shipments of semiconductors, AI infrastructure, critical minerals, and other strategic goods. If successfully implemented in Panama, the project could later be expanded to additional Pax Silica partners.

The summit also introduced Foundry School, a workforce development initiative established jointly by the US Department of State and Stanford University. The programme will begin with seminars at Stanford for entrepreneurs and industrial leaders and will be complemented by an advanced manufacturing curriculum that participating educational institutions across Pax Silica economies will be able to adopt. The initiative aims to strengthen expertise in advanced manufacturing, recognising its growing importance for both economic competitiveness and technological development.

Pax Silica reflects broader government efforts to strengthen resilience across AI-related supply chains as geopolitical competition increasingly intersects with technological development. In recent years, countries have introduced a range of policies covering semiconductor production, critical minerals, export controls, and trusted technology partnerships, while also seeking to balance innovation with economic and national security considerations.

The summit’s outcomes indicate that Pax Silica is evolving beyond a policy dialogue into a broader cooperation framework encompassing AI governance, supply chain security, industrial capacity, and workforce development. Whether the initiatives announced at the summit expand beyond their initial pilot phase will depend on implementation by participating governments and continued international cooperation among partner economies.

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Altman proposes US-led international forum for AI safety standards

OpenAI CEO Sam Altman has called for the creation of a US-led international forum to establish global safety standards for AI, arguing that no single country or company should dominate the governance of increasingly capable AI systems.

Writing in an opinion article published in the Financial Times, Altman proposed an international body bringing together governments, independent technical experts, and other stakeholders to develop accepted AI safety standards, provide impartial assessments of AI capabilities and risks, and make advanced AI technologies available to countries and organisations that participate in and comply with agreed rules.

According to Altman, such a forum could also serve as a governance mechanism for frontier AI developers, helping to reduce commercial pressures that may encourage companies to prioritise rapid deployment over safety. He argued that international cooperation has previously enabled countries to manage other strategically important technologies despite geopolitical competition.

To illustrate his proposal, Altman pointed to existing international governance mechanisms such as the International Atomic Energy Agency (IAEA), which oversees the peaceful use of nuclear technology, as well as global aviation safety frameworks and international financial standards. In his view, these models demonstrate that countries can establish common rules for technologies with significant cross-border implications while maintaining national interests.

Altman also argued that the benefits of AI should be shared more broadly, writing that ‘everyone on Earth should benefit from this technology and determine for themselves how best to use it.’ His proposal follows discussions at the recent Group of Seven (G7) summit in France, where executives from OpenAI, Anthropic, and Google DeepMind met with political leaders to discuss international approaches to governing advanced AI models.

A key challenge for any international oversight mechanism, however, remains enforcement. Unlike nuclear facilities or aircraft, frontier AI models are developed within highly secured data centres, making independent verification considerably more difficult. The limited visibility into model training, testing, and deployment has led many experts to question how compliance with international AI standards could be monitored in practice.

Altman’s proposal is not the first call for stronger international oversight of advanced AI. OpenAI and Anthropic have previously supported the idea of international governance mechanisms for frontier AI systems. Anthropic CEO Dario Amodei has argued for a more prescriptive regulatory approach, drawing comparisons with the US Federal Aviation Administration and advocating stronger regulatory oversight for highly capable AI models.

The proposal also comes as governments continue to expand their involvement in AI governance. Alongside national regulatory initiatives, international discussions have accelerated through forums such as the G7, the Global Partnership on AI (GPAI), and the UN.

Earlier this week, the UN’s Independent International Scientific Panel on Artificial Intelligence published its first preliminary assessment of AI opportunities, risks, and governance challenges ahead of the inaugural Global Dialogue on AI Governance in Geneva, reflecting growing international efforts to establish evidence-based approaches to AI governance.

Whether Altman’s proposal develops into a formal international initiative will ultimately depend on governments rather than AI companies. Commenting on broader discussions around AI governance, analysts at the Brookings Institution argued that cooperation between governments and leading AI developers could help establish common standards, but stressed that any future international framework would need effective implementation and enforcement mechanisms rather than relying solely on voluntary commitments.

As governments, international organisations, and AI developers continue debating how to govern increasingly capable AI systems, Altman’s proposal adds to a growing conversation about whether existing institutions are sufficient or whether new international mechanisms will be needed to manage the opportunities and risks associated with frontier AI.

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UAE and US deepen AI partnership under Pax Silica framework

The United Arab Emirates is expanding its AI cooperation with the United States, describing the partnership as a long-term strategic framework centred on investment, trusted technology and joint innovation across multiple sectors.

The UAE is investing across the US AI ecosystem, including semiconductors, AI applications, energy and digital infrastructure. Officials said the partnership reflects years of institutional cooperation, reinforced through continued policy alignment, economic collaboration and high-level engagement.

At the second Pax Silica Summit in Washington, UAE representatives joined international partners in advancing the Joint Statement on AI Opportunity, with 35 countries reaffirming their commitment to innovation-driven policies, private-sector research and resilient technology supply chains. The UAE joined the Pax Silica initiative in January 2026 as part of a broader US$1.4 trillion economic and technology framework.

The partnership also includes major infrastructure and investment projects, including advanced US semiconductor exports to the UAE, a joint AI campus in Abu Dhabi and expanding data centre capacity. Officials said cooperation will continue to deepen through long-term investment, research and technology integration.

Why does it matter?

The partnership illustrates how AI is increasingly shaping strategic relationships between countries, extending beyond research cooperation into semiconductors, computing infrastructure, investment and supply chains. Governments are treating AI capabilities as a foundation of long-term economic competitiveness and technological influence.

It also reflects the growing importance of trusted international technology partnerships. As countries seek secure access to advanced chips, data centres and AI infrastructure, collaborations such as the UAE-US partnership are becoming an important part of broader industrial, economic and geopolitical strategies.

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US House of Representatives passes Kids Internet and Digital Safety Act

The US House of Representatives has passed the Kids Internet and Digital Safety Act in a bipartisan 267-117 vote, advancing a broad package that combines 14 online child safety proposals into a single piece of legislation.

The legislation includes provisions requiring AI chatbots to remind users they are not human, provide mental health resources, encourage regular breaks and avoid promoting potentially harmful topics. Lawmakers also removed the original Kids Online Safety Act’s proposed ‘duty of care’ provision after concerns it could lead to censorship, a decision criticised by several senators who co-authored the earlier bill.

Critics, including digital rights organisations and several lawmakers, argue the legislation weakens existing protections and does not go far enough in holding technology companies accountable. The Electronic Frontier Foundation warned that compliance could encourage widespread age verification, potentially requiring users to submit personal information and raising concerns about privacy and freedom of expression.

Supporters reject those criticisms, arguing that the bill does not explicitly require age verification but instead strengthens safeguards for minors and expands parental controls. The legislation now moves to the Senate, where it is expected to face further scrutiny.

Why does it matter?

The legislation represents one of the most comprehensive federal efforts to strengthen online child safety in the United States. Its inclusion of AI chatbot requirements reflects growing recognition that conversational AI introduces new risks for younger users that existing online safety frameworks were not designed to address.

At the same time, the bill highlights the continuing challenge of balancing child protection with privacy and freedom of expression. As it moves to the Senate, debate is likely to focus on whether stronger platform accountability can be achieved without expanding age verification requirements or creating incentives for broader online censorship.

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Noyb says US Supreme Court ruling puts EU-US data deal under pressure

The US Supreme Court ruled on Monday in Trump v. Slaughter that the Federal Trade Commission (FTC) may no longer be considered an independent agency, a decision that digital rights organisation noyb argues undermines the legal basis of the EU-US Data Privacy Framework.

According to noyb, the European Commission referred to the FTC’s independence 259 times in its 2023 adequacy decision because EU law requires oversight of personal data protection to be carried out by an independent authority.

The EU-US Data Privacy Framework, adopted by the European Commission in 2023, was the third such agreement since 2000, following the annulment of its two predecessors, Safe Harbour and Privacy Shield, by the Court of Justice of the European Union over concerns about US surveillance laws and the lack of judicial remedies available to EU citizens.

The Supreme Court’s ruling follows the unitary executive theory, under which the conservative majority held that the US President must retain authority over all executive bodies, rendering laws that grant agencies like the FTC independence unconstitutional. Because the EU-US framework’s legal structure depended heavily on the FTC’s independent status, noyb argues that the ruling removes a key legal pillar supporting the Commission’s adequacy decision.

Noyb has sent a formal letter to the European Commission calling for the adequacy decision to be repealed and said it intends to bring a case before the Court of Justice of the European Union seeking its annulment. According to the organisation, such proceedings could take two to three years.

The European Commission’s decision remains formally in force unless repealed by the Commission itself or annulled by the courts, meaning there is no immediate legal effect. However, noyb notes that companies relying on alternative transfer mechanisms such as Standard Contractual Clauses and Binding Corporate Rules are also affected, since these typically depend on impact assessments referencing the same US oversight mechanism that noyb argues have now been legally weakened, including the Privacy and Civil Liberties Oversight Board and the Data Protection Review Court.

Why does it matter?

The ruling introduces fresh legal uncertainty around the EU-US Data Privacy Framework, which underpins transatlantic transfers of personal data used by thousands of businesses. Although the framework remains in force, a successful legal challenge could once again force organisations to reconsider how they transfer data between the EU and the United States.

The case also illustrates the continuing fragility of transatlantic data transfer arrangements. It comes as European policymakers place greater emphasis on digital sovereignty and reducing dependence on foreign digital infrastructure, potentially adding momentum to broader debates over data governance, cloud services and regulatory autonomy.

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Google proposes a balanced approach to AI governance in the US

Google has published a policy paper proposing a two-track approach to AI governance in the United States, separating oversight of frontier AI models from rules for widely deployed AI applications.

The paper argues that AI policy should avoid what Google describes as a false choice between over-regulation and no regulation. Instead, the company calls for a pragmatic, evidence-based framework that treats the most advanced AI systems differently from everyday AI tools such as chatbots.

For frontier AI, Google proposes the creation of a Frontier AI Regulatory Organisation, or FARO. The industry-funded body would operate under federal oversight and develop standards for safety, security, incident reporting and transparency.

Google says FARO could set scientific benchmarks for frontier capabilities, particularly in areas such as cybersecurity and chemical, biological, radiological and nuclear risks. It could also oversee independent audits and require frontier AI companies to publish and follow safety frameworks before releasing highly capable models.

For widely deployed AI applications, Google argues that the federal government should rely mainly on existing legal frameworks, with targeted updates where needed. The paper says policy should focus on real-world harms and outputs rather than micromanaging AI development.

The company identifies several priority areas, including workforce preparedness, child safety, information integrity, copyright, privacy and energy infrastructure for data centres.

Google supports measures such as AI interaction guidelines for children, disclosures that chatbots are not sentient, rules for self-harm-related queries, watermarking and provenance standards for generative AI, privacy-enhancing technologies and workforce reskilling.

The paper presents the model as a way to address national security and consumer protection risks while preserving US leadership in AI development.

Why does it matter?

Google’s paper is a significant industry intervention in the US AI policy debate. Its two-track model reflects a broader governance trend: frontier AI is increasingly being treated as a national security and safety issue, while everyday AI applications are being handled through consumer protection, child safety, privacy, copyright and labour policy. The proposal could influence federal discussions, but it also reflects Google’s own regulatory preferences, including industry-funded oversight, confidential audit reports and reliance on existing law for many AI applications.

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US backs photonics expansion for AI data centres under CHIPS Act

The Department of Commerce’s CHIPS Program Office has signed a letter of intent to provide up to $50 million in direct funding to Coherent Corp. under the CHIPS and Science Act.

According to the CHIPS Program Office, the proposed funding would support the expansion of Coherent’s facility in Sherman, Texas, which it describes as the first and largest high-volume 150mm indium phosphide semiconductor manufacturing facility in the United States.

The expansion would add wafer fabrication equipment and cleanroom capacity to increase production of indium phosphide-based photonic components. These components are used in high-speed optical interconnects that enable rapid data transfer within advanced AI data centres.

The Department of Commerce said the project would create high-skilled manufacturing jobs and strengthen domestic supply chains for critical photonics technologies that support next-generation computing and AI infrastructure.

Why does it matter?

The announcement highlights the growing importance of photonics technologies in the AI economy. As demand for AI computing continues to rise, data centres require increasingly efficient methods for transferring vast amounts of information between processors, servers and storage systems. Optical interconnect technologies based on indium phosphide semiconductors are becoming a critical part of that infrastructure.

The investment also reflects broader US industrial policy goals under the CHIPS and Science Act. Beyond traditional semiconductor manufacturing, policymakers are increasingly targeting specialised components and supply chains considered strategically important for AI competitiveness, economic security and technological resilience.

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Armenia expands AI ecosystem through research, infrastructure and investment

Armenian Prime Minister Nikol Pashinyan said government initiatives have helped position Armenia as an emerging centre for technology and AI, according to remarks reported by state news agency Armenpress. Speaking during the election campaign, Pashinyan highlighted several projects that he said demonstrate the government’s efforts to strengthen Armenia’s technology sector.

Pashinyan highlighted agreements signed with US President Donald Trump last year, including cooperation on AI. He argued that subsequent developments in the sector have validated the government’s approach.

As examples of progress, the Prime Minister cited the establishment of an AI centre at Yerevan State University and the launch of the Eleveight AI data centre. He also linked developments in the sector to increased public investment in science and higher salaries for researchers.

Pashinyan said investment in the defence sector has supported technological development and stated that Armenian defence companies are exporting products internationally. He made the remarks during campaigning ahead of Armenia’s parliamentary elections.

Why does it matter?

Armenia is seeking to expand its role in emerging technologies at a time when countries are increasingly investing in AI infrastructure, research capacity and digital innovation as drivers of economic growth and competitiveness.

The government’s focus on AI cooperation, research institutions and data centre infrastructure reflects broader efforts to strengthen domestic technological capabilities and attract investment in the digital economy.

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US Office of National Drug Control Policy releases 2026 National Drug Control Strategy

The White House Office of National Drug Control Policy (ONDCP) has published the 2026 National Drug Control Strategy on 4 May 2026, outlining the US government’s approach to addressing illicit drug supply and related challenges.

ONDCP coordinates US federal drug policy and oversees implementation of the National Drug Control Strategy. The office is responsible for developing and implementing the National Drug Control Strategy and Budget. The office coordinates activities across 19 federal agencies and oversees a budget of approximately USD 44 billion dedicated to addressing addiction, overdose prevention and drug trafficking.

ONDCP also supports programmes such as the High Intensity Drug Trafficking Areas Program and the Drug-Free Communities Program, which provide assistance to local communities in addressing drug-related challenges.

Why does it matter?

The National Drug Control Strategy serves as the principal framework guiding US federal efforts to address drug trafficking, substance use disorders and overdose-related harms.

The strategy also shapes funding priorities and coordination across multiple federal agencies involved in public health, law enforcement and community support programmes.

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US Census Bureau reports higher AI adoption among larger firms

The US Census Bureau has published new findings from its Business Trends and Outlook Survey, showing that AI use among US businesses remained between 17% and 20% from December 2025 to May 2026.

The survey also found that between 20% and 23% of businesses expected to use AI within the next six months. The data were collected between 14 December 2025 and 3 May 2026 and provide a biweekly, nationally representative view of AI implementation across US businesses.

AI adoption was higher among larger firms. Around 37% of businesses with at least 250 employees reported using AI in their operations, while 32% of firms with 100 to 249 employees reported AI use during the data collection period ending 3 May 2026.

The Census Bureau said AI use increased among firms with at least 20 employees between December 2025 and May 2026, but did not change significantly among firms with fewer than 20 employees. Less than 20% of firms with four or fewer employees reported using AI.

Sector-level findings showed that AI use remained above the national average in the Information and Finance and Insurance sectors. As of 3 May 2026, AI use reached 39.7% in Information and 33.9% in Finance and Insurance, compared with a national rate of 19.8%.

Retail Trade businesses reported lower adoption rates, with around 14% currently using AI and about 17% expecting to use it within six months.

The Census Bureau also noted that its updated AI supplement now measures AI use across 15 business functions, including finance, human resources, customer service, marketing, information technology, and research and development. The supplement also examines AI-related operational changes, including training, workflow adjustments, and technology investments.

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