The morning briefing.
While you slept: Europe debates AI sovereignty after Anthropic's global model shutdown, the UK bans social media for under-16s, and China's Zhipu AI launches a new open-source model.
AI Sovereignty. The US order forcing Anthropic to shut down Fable 5 and Mythos 5 globally has ignited a debate in Europe regarding AI sovereignty. The European Commission is assessing implications, with researchers discussing building homegrown foundation models versus securing access via contracts. Experts warn that Europe currently lacks the necessary computing capacity, energy, and competitive providers for such infrastructure.
Enterprise AI Adoption. As enterprises increasingly adopt AI, new challenges are emerging, including "botsitting" where workers spend hours supervising AI outputs. A new study highlights the significant liability posed by "shadow AI," with many employees using unauthorized tools and sharing sensitive data. Microsoft CEO Satya Nadella warns against a future where a few AI systems capture all economic returns, advocating for companies to build their own "token capital."
Global AI Development. China's AI landscape continues to evolve, with Zhipu AI's stock surging after it launched its open-source GLM-5.2 model, a move that coincides with US restrictions on top models overseas. The cost of electricity is also becoming a critical factor in deciding where AI data centers are built, particularly in China. Meanwhile, Google has been found liable for inaccurate results from its AI Overview feature, raising questions about accountability for generative AI outputs.
Digital Policy. The UK government has announced a ban on social media for children under 16, aiming to address concerns about child safety and well-being online. This policy follows similar moves by Australia and includes broader measures to prevent children from interacting with strangers in online games or using sexual chatbots. Separately, former President Trump is threatening 100% tariffs on French wine over its digital services tax, highlighting ongoing international disputes over tech taxation.
Anthropic shutdown sparks sovereignty debate across Europe
The European Commission is assessing the implications of a US order that forced Anthropic to shut down Fable 5 and Mythos 5 worldwide. European researchers are debating whether to build their own foundation models or secure access through contracts, noting Europe's current lack of computing capacity and competitive providers.
UK will ban social media for children under 16
The UK government has announced a ban on social media platforms like TikTok and Instagram for children under 16, following Australia's lead. The measures, expected to take effect early next year, also aim to prevent children from interacting with strangers in online games and using sexual chatbots.
Chinese compound chip stocks surge after Supreme Court blocks Infineon in GaN patent case
Chinese compound semiconductor stocks surged after China's Supreme People's Court upheld an injunction blocking German chip giant Infineon Technologies from selling gallium nitride (GaN) products in mainland China. This landmark patent dispute is expected to reshape China's "third-generation" chip sector.
Microsoft CEO Satya Nadella warns of "a small number of AI systems capturing all the economic returns"
Microsoft CEO Satya Nadella advocates for companies to build their own "token capital" and AI capabilities based on internal data. He warns that without this, a few large AI models could capture the value of entire industries.
Madrid’s Orbio raises €18.09 million Series A to scale AI workforce platform for frontline teams
Madrid-based Orbio, an AI workforce platform for global enterprises, has secured €18.09 million ($21 million) in Series A funding led by Dawn Capital. The capital will fuel expansion into new markets, growth with enterprise customers, and continued platform development.
Apple could lock the best parts of Siri AI behind a ChatGPT-style paywall, tipster predicts
A reputable Apple tipster suggests that while Siri is getting smarter, its most advanced AI features might be locked behind a subscription paywall. This would make some of Siri's new capabilities a paid service, similar to ChatGPT.
Google found liable for bad AI Overview results
Google has been found liable for inaccurate information generated by its AI Overview feature. This ruling raises significant questions about the accountability of generative AI outputs and their impact on users.
Workers are spending hours every week 'botsitting' to make sure AI does its job properly
A new report indicates that while AI helps workers deliver tasks more quickly, they are subsequently spending hours performing "botsitting" duties. This involves correcting errors and ensuring AI outputs are accurate, adding a new layer of work.
'Shadow AI becomes a massive enterprise liability': New study claims most of us are now using unauthorized AI tools at work
A new study reveals that a majority of workers are using unauthorized AI tools at work, often sharing sensitive business and customer information with public AI models. This widespread "shadow AI" usage is becoming a significant enterprise liability.
Can open-source beat OpenAI?
Former Hugging Face executive Tiezhen Wang discusses how China's open-source strategy is reshaping the global AI race. The article explores whether open-source models can effectively compete with proprietary solutions from companies like OpenAI.
Zhipu AI’s stock rockets after Chinese firm launches open-source GLM-5.2 model
Shares of Beijing-based AI pioneer Zhipu AI soared after it released GLM-5.2, its latest and most powerful large language model, which will be made available on an open-source basis. The launch coincides with Washington's abrupt order to suspend top US models overseas.
The Price of a Kilowatt-Hour Is Quietly Deciding Where AI Data Centers Are Built
Zhejiang's new time-of-use electricity pricing policy highlights how power cost differentials are reshaping the location strategy for AI computing centers. Energy prices are becoming a critical factor in investment decisions for AI infrastructure across China.
AutoVRse raises $2.4 Mn from Singularity AMC and Lumikai
AutoVRse, an industrial AI transformation platform, has raised $2.4 million in a funding round co-led by Singularity AMC and existing investor Lumikai. The Bengaluru-based startup will use the capital to accelerate product development, deepen customer integrations, and expand its go-to-market efforts in North America.
Berlin’s Qorelo raises €3 million five months after launch to tackle SAP’s 2027 transformation crunch
Berlin-based Qorelo, an AI engine for modern ERP delivery, has raised €3 million ($3.5 million) in seed funding just five months after its launch. The round, co-led by HPI Ventures and Caesar Ventures, aims to help companies navigate SAP's 2027 transformation deadline.