Consumers across the US are increasingly starting everyday digital tasks with AI, rather than search engines or individual apps, according to new research tracking changes in online behaviour.
Dedicated AI platforms are becoming the first place where intent is expressed, whether users are planning travel, comparing products, seeking advice on purchases and managing budgets.
Research shows more than 60% of US adults used a standalone AI platform last year, with younger generations especially likely to begin personal tasks through conversational tools rather than traditional search.
Businesses face growing pressure to adapt as AI reshapes how decisions begin, encouraging companies to rethink marketing, commerce and customer journeys around dialogue rather than clicks.
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The US administration has approved the export of Nvidia’s H200 AI chips to China, reversing years of tight US restrictions on advanced AI hardware. The Nvidia H200 chips represent the company’s second-most-powerful chip series and were previously barred from sale due to national security concerns.
The US president announced the move last month, linking approval to a 25 per cent fee payable to the US government. The administration said the policy balances economic competitiveness with security interests, while critics warned it could strengthen China’s military and surveillance capabilities.
Under the new rules, Nvidia H200 chips may be shipped to China only after third-party testing verifies their performance. Chinese buyers are limited to 50 per cent of the volume sold to US customers and must provide assurances that the chips will not be used for military purposes.
Nvidia welcomed the decision, saying it would support US jobs and global competitiveness. However, analysts questioned whether the safeguards can be effectively enforced, noting that Chinese firms have previously accessed restricted technologies through intermediaries.
Chinese companies have reportedly ordered more than two million Nvidia H200 chips, far exceeding the chipmaker’s current inventory. The scale of demand has intensified debate over whether the policy will limit China’s AI ambitions or accelerate its access to advanced computing power.
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The United Arab Emirates has joined Pax Silica, a US-led alliance focused on AI and semiconductor supply chains. The move places Abu Dhabi among Washington’s trusted technology partners.
The pact aims to secure access to chips, computing power, energy and critical minerals. The US Department of State says technology supply chains are now treated as strategic assets.
UAE officials view the alliance as supporting economic diversification and AI leadership ambitions. Membership strengthens access to advanced semiconductors and large-scale data centre infrastructure.
Pax Silica reflects a broader shift in global tech diplomacy towards allied supply networks. Analysts say participation could shape future investment in AI infrastructure and manufacturing.
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Elon Musk’s X has limited the image editing functions of its Grok AI tool after criticism over the creation of sexualised images of real people.
The platform said technological safeguards have been introduced to block such content in regions where it is illegal, following growing concern from governments and regulators.
UK officials described the move as a positive step, although regulatory scrutiny remains ongoing.
Authorities are examining whether X complied with existing laws, while similar investigations have been launched in the US amid broader concerns over the misuse of AI-generated imagery.
International pressure has continued to build, with some countries banning Grok entirely instead of waiting for platform-led restrictions.
Policy experts have welcomed stronger controls but questioned how effectively X can identify real individuals and enforce its updated rules across different jurisdictions.
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TSMC reported a strong fourth-quarter performance, posting a 35 percent rise in profit to a record level, supported by sustained demand for advanced chips.
The company forecast robust growth for 2026, citing continued customer interest and tight capacity, while highlighting expectations for a significant increase in revenue in the first quarter of the year.
The Taiwanese semiconductor manufacturer confirmed that capital spending reached US$40.9 billion in 2025, slightly above earlier guidance, and indicated further increases ahead, with investment potentially rising to as much as US$56 billion in 2026 and accelerating later in the decade.
Ongoing projects include additional manufacturing capacity in the US, expansion in Japan, and continued investment in Taiwan.
TSMC also signalled that more US facilities may be planned, following earlier commitments to large-scale investment in Arizona.
Developments come amid discussions between Taiwan and the US on trade and tariffs, as well as broader policy efforts in Washington to encourage domestic semiconductor production.
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The US Department of Defence plans to integrate Elon Musk’s AI tool Grok into Pentagon networks later in January, according to Defence Secretary Pete Hegseth.
The system is expected to operate across both classified and unclassified military environments as part of a broader push to expand AI capabilities.
Hegseth also outlined an AI acceleration strategy designed to increase experimentation, reduce administrative barriers and prioritise investment across defence technology.
An approach that aims to enhance access to data across federated IT systems, aligning with official views that military AI performance relies on data availability and interoperability.
The move follows earlier decisions by the Pentagon to adopt Google’s Gemini for an internal AI platform and to award large contracts to Anthropic, OpenAI, Google and xAI for agentic AI development.
Officials describe these efforts as part of a long-term strategy to strengthen US military competitiveness in AI.
Grok’s integration comes amid ongoing controversy, including criticism over generated imagery and previous incidents involving extremist and offensive content. Several governments and regulators have already taken action against the tool, adding scrutiny to its expanded role within defence systems.
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The EU has agreed to open talks with the US on sharing sensitive traveller data. The discussions aim to preserve visa-free travel for European citizens.
The proposal is called ‘Enhanced Border Security Partnership‘, and it could allow transfers of biometric data and other sensitive personal information. Legal experts warn that unclear limits may widen access beyond travellers alone.
EU governments have authorised the European Commission to negotiate a shared framework. Member states would later settle details through bilateral agreements with Washington.
Academics and privacy advocates are calling for stronger safeguards and transparency. EU officials insist data protection limits will form part of any final agreement.
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A US teenager targeted by explicit deepfake images has helped create a new training course. The programme aims to support students, parents and school staff facing online abuse.
The course explains how AI tools are used to create sexualised fake images. It also outlines legal rights, reporting steps and available victim support resources.
Research shows deepfake abuse is spreading among teenagers, despite stronger laws. One in eight US teens know someone targeted by non-consensual fake images.
Developers say education remains critical as AI tools become easier to access. Schools are encouraged to adopt training to protect students and prevent harm.
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The US administration’s new AI action plan frames global development as an AI race with a single winner. Officials argue AI dominance brings economic, military, and geopolitical advantages. Experts say competition is unfolding across multiple domains.
The United States continues to lead in the development of advanced large language and multimodal models by firms such as OpenAI, Google, and Anthropic. American companies also dominate global computing infrastructure. Control over high-end AI chips and data-centre capacity remains concentrated in US firms.
Chinese companies are narrowing the gap in the practical applications of AI. Models from Alibaba, DeepSeek, and Moonshot AI perform well in tasks such as translation, coding, and customer service. Performance at the cutting edge still lags behind US systems.
Washington’s decision to allow limited exports of Nvidia’s H200 AI chips to China reflects a belief that controlled sales can preserve US leadership. Critics argue the move risks weakening America’s computing advantage. Concerns persist over long-term strategic consequences.
Rather than a decisive victory for either side in the AI race, analysts foresee an era of asymmetric competition in AI. The United States may dominate advanced AI services, but China is expected to lead in large-scale industrial deployment within the evolving AI race.
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A series of agreements has been announced by Meta to support nuclear energy projects in the US, aiming to secure up to 6.6 gigawatts of clean and reliable electricity for data centres and AI infrastructure by 2035. The company said the move supports grid stability while reinforcing domestic energy capacity.
The agreements include support for existing nuclear facilities operated by Vistra in Ohio and Pennsylvania, as well as commitments to advanced reactor developers TerraPower and Oklo.
Meta stated that the arrangements are intended to extend the operational life of current plants while accelerating the deployment of next-generation nuclear technologies.
According to Meta, the projects are expected to generate thousands of construction roles and hundreds of long-term operational jobs, while contributing to the firm’s power to regional electricity grids.
The company added that energy costs associated with its data centres are fully covered through corporate agreements, instead of being passed on to US consumers.
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