China Mulls AI Export Controls as Tech Race With US Intensifies

• The European Commission has introduced a new action plan integrating cybersecurity with artificial intelligence ahead of the AI Act's implementation. • The plan focuses on evaluating advanced general-purpose AI models, with a specific emphasis on strengthening their cybersecurity frameworks.

• Europe is experiencing an AI funding surge, with the UK tech ecosystem reporting its strongest first-half performance since 2022. • Major funding rounds include Twelve Labs raising $100M in Series A for video AI infrastructure and Venice securing $65M for generative AI content.

• U.S. companies are increasingly adopting affordable Chinese AI models to reduce costs, with weekly usage on the Openrouter platform peaking at 46% since February 8. • This trend marks a significant surge from the previous year's 11% average and a low of 4.5% during the first half of 2025, with startups like Lindy fully integrating Chinese tech.

• Substantial capital continues to flow into the AI sector, with significant funding rounds targeting hardware developers, cloud hosting providers, and vertical software startups. • These investments are driving multi-billion-dollar valuations for companies specializing in AI infrastructure and specialized software applications.

• New AI startups founded by former hedge fund managers are aiming to automate core investing processes, moving beyond basic administrative tasks. • While asset managers previously used AI for "unsexy" functions like legal review and regulatory compliance, they are now leveraging sophisticated LLMs and AI agents.

• A UN scientific panel has warned that the rapid advancement of AI capabilities is currently outpacing regulatory oversight, potentially leading to "catastrophic harm." • Experts expressed specific concerns regarding the risks of AI deception, safety failures, and the concentration of global control.

• The author argues that technology is no longer the primary barrier to startup success due to the accessibility of open-source software and artificial intelligence. • AI now allows founders to automate critical business functions, including writing code, generating documentation, and managing customer support.

• Researchers from Peking University and the Chinese Academy of Sciences (CAS) have developed the world's first neurodynamic chip based on phase-change memristors. • This breakthrough in neuromorphic computing allows hardware to process information similarly to biological brains, utilizing massively parallel and event-driven architectures.

• The European Commission has launched a new Action Plan designed to enhance AI integration and cybersecurity to boost overall cyber resilience across the EU. • A central initiative is the "EU Grand Challenge on AI for cybersecurity," which will unite researchers, public organizations, and private companies to create next-generation security solutions.

• Google has launched a $1 million Indie Games Fund for Sub-Saharan Africa, providing non-equity grants of up to $200,000 to help local mobile and PC game studios scale. • The initiative combines financial support with hands-on technical mentorship to foster the growth of independent game developers across the region.

• Rick Hao has departed from Speedinvest to launch a new $50 million solo venture fund specifically targeting the deeptech sector. • Oslo-based Six Robotics secured €12 million in a Seed round led by DTCP's Defence fund to scale its Valkyrie autonomy platform for unmanned systems.