Shares in Amsterdam-based Nebius surged more than 50% in US premarket trading after the company announced a $19.4 billion deal with Microsoft. The agreement will provide cloud computing power for AI workloads and is set to run until 2031.
Under the pact’s terms, Nebius will generate $17.4 billion in revenue over the next six years, with Microsoft also retaining the option to purchase additional computing capacity.
Investors responded strongly, with Nebius shares climbing 60% in extended trading on Monday and continuing their rise on Tuesday. Rival AI infrastructure company CoreWeave also benefited, gaining more than 6% premarket.
Nebius, spun out from Russian internet firm Yandex in 2023, specialises in supplying GPUs for training AI models. The deal underscores the high demand for computing power as companies race to develop increasingly advanced AI systems.
Industry leader Nvidia recently reported soaring earnings and forecast that AI infrastructure spending could reach $4 trillion by 2030.
The boom in AI infrastructure comes amid mounting questions over whether valuations are sustainable. OpenAI has reportedly reached a $500 billion valuation, while rival Anthropic recently raised $13 billion at a $183 billion valuation.
Some analysts, including OpenAI chief executive Sam Altman, have warned that the AI sector may already show signs of a bubble.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
According to people familiar with the plans, Chinese startup DeepSeek is developing an AI model with enhanced agent features to compete with US firms such as OpenAI.
The Hangzhou-based company intends for the system to perform multi-step tasks with limited input and adapt from its previous actions.
Founder Liang Wenfeng has urged his team to prepare the release before the end of 2025. The project follows DeepSeek’s earlier success with R1, a reasoning-focused model launched in January that attracted attention for its low development costs.
Since then, DeepSeek has delivered only incremental updates while rivals in China and the US have accelerated new product launches.
The shift towards AI agents reflects a broader industry move to develop tools capable of managing complex real-world tasks, from research to coding, with less reliance on users. OpenAI, Anthropic, Microsoft, and Manus AI have already introduced similar projects.
Most systems still require significant oversight, highlighting the challenges of building fully autonomous agents.
The United States has revoked Taiwan Semiconductor Manufacturing Company’s licence to ship advanced technology from America to China. The decision follows similar restrictions on South Korean firms Samsung and SK Hynix, increasing uncertainty for chipmakers operating Chinese facilities.
TSMC confirmed that Washington has notified that its authorisation will expire by the end of the year. The company said it would discuss the matter with the US government and stressed its commitment to keeping operations in China running without disruption.
The curbs are part of broader US measures to limit China’s access to advanced semiconductors. While they could complicate shipments and force suppliers to seek individual approvals, analysts suggest the direct impact on TSMC will be limited, as its sole Chinese plant in Nanjing makes older-generation chips that contribute only a small share of revenue.
Chinese customers may increasingly turn to domestic chipmakers, even if their technology lags. Such a shift could spur innovation in less performance-critical areas, while global suppliers grapple with higher costs and regulatory hurdles.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Amazon has introduced Lens Live, an AI-powered feature that lets shoppers identify and buy products by pointing their phone camera at real-world items.
The tool builds on Amazon Lens by adding a live, real-time element to product discovery.
Lens Live is integrated with Amazon’s AI assistant Rufus, which provides AI-generated product summaries, suggested questions and insights to help users make informed decisions.
It is powered by Amazon SageMaker and AWS-managed OpenSearch, enabling machine learning at scale.
The feature has launched on the Amazon Shopping app for iOS, initially available to tens of millions of US shoppers, with no word yet on an international rollout.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Donald Trump’s AI Action Plan, released in July 2025, places domestic semiconductor manufacturing at the heart of US efforts to dominate global AI. The plan supports deregulation, domestic production and export of full-stack technology, positioning chips as critical to national power.
Lawmakers and tech leaders have previously flagged tracking chips post-sale as viable, with companies like Google already using such methods. Trump’s plan suggests adopting location tracking and enhanced end-use monitoring to ensure chips avoid blacklisted destinations.
Trump has pressed for more private sector investment in US fabs, reportedly using tariff threats to extract pledges from chipmakers like TSMC. The cost of building and running chip plants in the US remains significantly higher than in Asia, raising questions about sustainability.
America’s success in AI and semiconductors will likely depend on how well it balances domestic goals with global collaboration. Overregulation risks slowing innovation, while unilateral restrictions may alienate allies and reduce long-term influence.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Bluesky, a decentralised social media platform, has ceased operations in Mississippi due to a new state law requiring strict age verification.
The company said compliance would require tracking users, identifying children, and collecting sensitive personal information. For a small team like Bluesky’s, the burden of such infrastructure, alongside privacy concerns, made continued service unfeasible.
The law mandates age checks not just for explicit content, but for access to general social media. Bluesky highlighted that even the UK Online Safety Act does not require platforms to track which users are children.
US Mississippi law has sparked debate over whether efforts to protect minors are inadvertently undermining online privacy and free speech. Bluesky warned that such legislation may stifle innovation and entrench dominance by larger tech firms.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Google has introduced a new version of its Gemini AI platform tailored specifically for US government use, called Gemini for Government. The platform combines features such as image generation, enterprise search, and AI agent development, with compliance to standards like Sec4 and FedRAMP.
Gemini includes pre-built AI agents for research and idea generation, while also offering tools to create custom agents. US government customers will pay $0.50 per year for basic access, undercutting rivals OpenAI and Anthropic, who each launched $1 government-focused AI packages earlier this year.
Google emphasised security, privacy, and automation in its pitch, positioning the product as an all-in-one solution for public sector institutions. The launch follows the Trump administration’s AI Action Plan, which seeks to promote AI growth.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
US President Donald Trump has dismissed national security and privacy concerns surrounding TikTok as ‘highly overrated,’ signalling once again that the popular video-sharing platform is unlikely to face a ban anytime soon. Although Congress passed legislation requiring TikTok’s Chinese parent company, ByteDance, to sell its controlling stake or face a nationwide ban, Trump has repeatedly pushed back enforcement deadlines, with the next one set for 17 September.
Trump has already issued three extensions since taking office for his second term. The first came on 20 January, after TikTok briefly went offline when the court-approved ban took effect. Another followed in April, when a potential US buyout collapsed after China objected to Trump’s tariff moves. Trump insists that American buyers remain interested but says the process is ‘complex,’ justifying further delays.
Despite the legal framework for a ban, Trump’s administration has not faced significant legal challenges over his executive orders keeping TikTok active, which contrasts with many of his other directives. The White House even launched its own TikTok account this week, underscoring the platform’s mainstream role in US politics. Trump himself admitted he is a fan, noting its popularity among his children and younger voters.
Public opinion on TikTok remains deeply divided. A Pew Research Center survey found only about one-third of Americans now support a ban, a sharp decline from half of respondents in 2023. Roughly equal shares oppose a ban or remain undecided. Among supporters of restrictions, most cite concerns about user data security. Still, with Trump downplaying risks and signalling a willingness to keep the app alive, TikTok’s future in the US looks increasingly secure.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
US tech stocks have stumbled after a sharp rally, with investors increasingly cautious over AI-linked valuations and shifting market conditions. The S&P 500 tech sector has dropped around 2.5% this week, while the Nasdaq has slipped 2%, led by losses in Nvidia and Palantir.
The fall follows a 50% surge in tech shares since April, far outpacing the broader market and pushing valuations to year-highs. Concerns are growing that investor enthusiasm around AI has become overheated, with some funds reducing their exposure ahead of expected interest rate guidance.
US market watchers are now focused on Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, which could signal if rate cuts are on the horizon. Tech stocks, already heavily weighted in many portfolios, are particularly vulnerable to higher rates due to their stretched price-to-earnings ratios.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Citi has expanded its digital client platform, CitiDirect Commercial Banking, with new AI capabilities to improve customer service and security.
The platform now supports over half of Citi’s global commercial banking client base and handles around 2.3 million sessions.
AI features assist in fraud detection, automate customer queries, and provide real-time onboarding updates and guidance.
KYC renewals have been simplified through automated alerts and pre-filled forms, cutting effort and processing time for clients.
Live in markets including the UK, US, India, and others, the platform has received positive feedback from over 10,000 users. Citi says the enhancements are part of a broader effort to make mid-sized corporate banking faster, more innovative, and more efficient.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
