This Week’s Top 5 Stories in AI

Nvidia is reportedly working on a new AI chip tailored specifically for the Chinese market, as tensions between Washington and Beijing over access to AI technology continue to dominate trade relations between the world’s two largest economies.

The company is developing the B30A, a processor based on its Blackwell architecture that would significantly outperform the H20 model currently approved for sale in China, according to two sources speaking to Reuters.

This latest development follows US President Donald Trump’s recent suggestion that he might allow Nvidia to sell more advanced semiconductors to Chinese customers. 

Yet industry insiders caution that winning regulatory approval remains far from certain, given the mistrust in Washington over sharing sensitive AI technology with Beijing.

The B30A is a careful balancing act for Nvidia. 

The chip employs a single-die design – essentially cramming all the processor’s components onto one piece of silicon rather than spreading them across multiple chips. 

While this approach will deliver roughly half the raw computing power of Nvidia’s top-tier B300 accelerator, it should still pack considerably more punch than the current H20.

Nvidia hopes to get samples of the new chip into the hands of Chinese clients for testing as soon as next month, though final specifications are still being ironed out.

“We evaluate a variety of products for our roadmap, so that we can be prepared to compete to the extent that governments allow,” the company says in a statement.

Why the Alan Turing Institute is in Turmoil Over AI Defence

According to the BBC, the Alan Turing Institute, Britain’s national centre for AI research, acknowledges “challenging” months as staff revolt against government pressure to pivot towards defence applications. 

The publicly funded organisation, which receives £100m (US$132.7m) annually from the Treasury, faces internal turmoil after Technology Secretary Peter Kyle threatened to withdraw funding unless it prioritised military research.

Chair of the Alan Turing Institute Doug Gurr has responded to mounting criticism by establishing a senior working group comprising government officials and institute staff. 

In a letter seen by the BBC, he says the organisation would “step up at a time of national need” while maintaining that defence should not be the “sole focus” of its research activities.

OpenAI: Stargate Norway Becoming the EU’s AI Gigafactory

Stargate Norway is OpenAI’s pioneering AI data centre project in Europe under the ‘OpenAI for Countries’ programme – seeking to expand compute capacity in Europe, providing transformative capabilities to the continent's researchers, developers, scientists and start-ups.

Located near Narvik, Northern Norway, the Stargate Norway project now plans to house 100,000 Nvidia GPUs and 230MW of renewable data centre capacity, backed by strategic players Nscale Global Holdings, Aker and OpenAI.

“Announcing Stargate Norway and delivering one of the first European AI Gigafactory to market is a strategic milestone for the region and boosts its role in the global AI landscape,” says Josh Payne, CEO of Nscale.

The site’s location in Northern Norway offers key advantages aligned with data centre sustainability and scalability goals, including cool ambient temperatures, high industrial readiness and low energy costs due to abundant hydropower availability.

Behind Microsoft’s Warnings on the Rise of ‘AI Psychosis’

Microsoft’s Head of AI has issued warnings about increasing reports of “AI psychosis”, a phenomenon where users develop delusional beliefs through interactions with chatbots including OpenAI’s ChatGPT, Anthropic’s Claude and Elon Musk’s Grok platform.

Mustafa Suleyman, who leads AI development at the software corporation, expresses concerns about the societal impact of AI systems that appear conscious to users. 

In posts on X, he describes how “seemingly conscious AI” tools are causing him sleepless nights despite the technology lacking genuine consciousness.

“There's zero evidence of AI consciousness today. But if people just perceive it as conscious, they will believe that perception as reality,” he says to the BBC.

The term “AI psychosis” describes incidents where individuals become increasingly dependent on AI chatbots and subsequently convince themselves that fictional scenarios have become real. 

These manifestations include beliefs about unlocking secret chatbot capabilities, forming romantic relationships with AI systems, or developing perceptions of possessing superhuman abilities.

The warnings come as major technology companies deploy increasingly sophisticated large language models (LLMs) that can engage in human-like conversations. 

IBM: How CEOs Can Turn AI Challenges Into Growth

AI has been integrated into business operations for some time now, but how it is adopted, navigated and used depends on CEOs.

When AI was newer and evolving, adoption and navigation was clunky and uncertain for leaders.

Now, according to new research from IBM’s Institute for Business Value, CEOs are turning economic disruption and regulatory uncertainty into growth opportunities by embracing AI as a strategic differentiator.

The IBM Institute for Business Value’s 2025 CEO Study, part of IBM’s Global C-suite series, surveyed 2,000 CEOs from 33 countries and 24 industries to understand how leaders navigate turbulence in business environments where AI technology evolves faster than organisations can adapt. 

The research reveals strategies that distinguish successful leaders from those struggling with constant uncertainty.

IBM finds that economic volatility and regulatory shifts are colliding with rapid AI advancement, creating conditions where every strategic decision carries significant risk.