This Week’s Top 5 Stories in AI

Why the EU AI Code is Splitting Top AI and Tech Leaders

The EU’s AI Code of Practice has exposed sharp divisions among technology companies, with some players embracing the framework while others reject it as regulatory overreach.

The code serves as a practical implementation guide for the EU AI Act, the world’s first AI legislation that aims to regulate AI systems based on their potential risks. 

While the act establishes a risk-based framework that imposes stricter requirements on AI systems deemed to pose greater threats to safety, fundamental rights and society – the voluntary Code of Practice specifically addresses general-purpose AI models.

It addresses general-purpose AI models because they are powerful systems like those developed by OpenAI, Google and Meta that can perform multiple tasks rather than being designed for specific applications. 

These models, which include large language models (LLMs) and multimodal systems, are some of the most advanced AI technologies currently available.

Now, major technology and AI companies have started to sign or reject the code.

Inside Trump’s Plans to Boost US AI and Ban ‘Woke’ Models

President Donald Trump has signed three executive orders targeting what his administration describes as “woke” AI models whilst removing regulatory barriers to accelerate AI development in the US.

The orders, signed at an AI summit in Washington, form part of a 28-page “AI Action Plan” containing more than 90 policy actions designed to maintain America’s competitive position in AI development.

“We believe we’re in an AI race, and we want the United States to win that race,” David Sacks, Trump Administration Crypto Tsar, told reporters. 

The plan aims to build data centre infrastructure whilst eradicating what the administration terms “ideological bias” from AI systems.

President Trump addressed critics during his keynote speech at the summit, which was hosted by the All-In podcast.

“The American people do not want woke Marxist lunacy in the AI models,” he says, according to the Guardian. “Once and for all, we are getting rid of woke. Is that OK?”

OpenAI & Oracle: The Partnership Expanding Stargate to 4.5GW

The competition to build AI infrastructure has spiked as OpenAI makes one of the biggest moves yet. 

The AI company has struck a massive deal with Oracle to add 4.5 gigawatts of data centre capacity to its ambitious Stargate project – an infrastructure initiative that’s quickly becoming one of the most significant technology buildouts in American history.

Stargate is a data centre project as well as OpenAI’s answer to a problem plaguing the AI industry: there simply isn’t enough computing power to meet increasing demand. 

Training the next generation of AI models requires thousands of specialised chips running non-stop for months, while serving these systems to millions of users demands computational resources that dwarf traditional software needs.

Stargate already has one facility under construction in Abilene, Texas. Combined, these projects will deliver more than 5 gigawatts of capacity – enough to power over 2 million AI-focused chips. 

This scale puts OpenAI in the running to meet its January pledge: US$500bn invested in 10 gigawatts of AI infrastructure across America over the next four years.

The Impact of Netflix Using Gen AI for Visual Effects

Netflix has deployed Gen AI to create visual effects in one of its original productions for the first time, marking a big moment for AI adoption in mainstream entertainment.

The streaming platform, which operates subscription video services globally, used AI-generated imagery to depict a building collapse in The Eternaut, an Argentine science fiction series. 

The technology enabled the production team to complete the sequence significantly faster whilst reducing costs.

Ted Sarandos, co-CEO of Netflix, says the AI tools allow productions with constrained budgets to access sophisticated visual effects previously reserved for high-budget projects. 

“The cost of it just wouldn’t have been feasible for a show in that budget,” he says.

This deployment happens as Netflix reports revenues of US$11bn for the three months ending June, a 16% increase compared to the same period last year. 

Profits climbed from US$2.1bn to US$3.1bn, driven partly by the performance of Squid Game’s third series, which attracted 122 million views.

How OpenAI is Seeing the UK to AI Glory via Data Centres

The UK’s push to establish itself as a global AI hub has gained fresh momentum as governments worldwide compete to attract the industry’s biggest players. 

Countries from Singapore to Canada are offering incentives and partnerships to secure their position in the AI supply chain, recognising the technology’s potential to alter entire economies.

However, the UK faces particular pressure to demonstrate its post-Brexit relevance in emerging technologies. 

The government has committed billions to AI infrastructure and research, but needs private sector validation to make these investments meaningful.

This is where OpenAI comes in. The AI company has now signed a partnership with the UK government that will see the firm expand its London operations and explore investments in British AI infrastructure.

The memorandum of understanding, signed by Technology Secretary Peter Kyle and OpenAI CEO Sam Altman on Monday, establishes a framework for collaboration across government services and security research.

OpenAI will increase the size of its London office, which opened as the company’s first international location two years ago. The facility houses research and engineering teams working on large language models (LLMs).

This move from OpenAI is part of its deeper commitment to the UK market as it looks to expand beyond its US base.