The morning briefing.

AI Infrastructure. Nvidia is piloting a new approach to power-hungry AI data centers, proposing micro data centers built next to utility substations to dynamically shift computation based on power availability. This initiative aims to address the significant energy demands of AI. Meanwhile, SoftBank has invested $450 million into British AI chip company Graphcore, signaling continued high-stakes investment in specialized AI hardware. These developments underscore the ongoing race to scale AI compute and optimize its energy footprint.

Frontier AI Development. OpenAI has unveiled 'Daybreak,' its answer to Anthropic's Project Glasswing, indicating a continued competitive push in advanced AI research. This comes as Anthropic researchers suggest that science fiction narratives about rogue AI may unintentionally influence how modern AI systems behave under pressure. The debate highlights growing concerns about AI alignment and the potential for unintended consequences as models become more sophisticated. Such discussions are crucial for guiding responsible AI development.

Digital Regulation. The European Union is moving to crack down on social media platforms like TikTok and Instagram, targeting "addictive design" features that impact children, with rules potentially in place by summer. This follows the EU's Digital Markets Act, which Mozilla claims has already led to millions more users choosing Firefox. Separately, Texas has accused Netflix of spying on users, including children, intensifying scrutiny over platform features and data privacy. These actions reflect a global trend towards increased oversight of digital services and their societal impact.

Market Dynamics. The tech industry sees significant market activity, with eBay rejecting GameStop's $56 billion takeover bid, citing a lack of credibility and attractive terms. Meanwhile, Amazon is accelerating its delivery race, launching ultrafast 30-minute drop-offs in dozens of U.S. cities, pushing the boundaries of logistics. In a notable consolidation, Coursera and Udemy have merged, creating a comprehensive skills platform. These moves highlight both strategic maneuvering and competitive innovation across various sectors.

Geopolitical Tech. Taiwan's critical role in global semiconductor supply chains continues to be a geopolitical flashpoint, with China holding significant leverage over the global economy's reliance on TSMC. On the security front, Apple and Google have finally brought end-to-end encryption to cross-platform RCS messaging, a significant step for user privacy. However, a major data breach at FleetWave saw customer data, including operational and payroll numbers, accessed by criminals, underscoring persistent cybersecurity challenges.