Federal Reserve maintains less hawkish stance than ECB amid US AI boom

• Southeast Asia's deep tech sector experienced a softening in overall deal activity during 2025, although capital formation remained resilient. • The segment saw an increase in its share of total venture-backed deals compared to the previous year, indicating broader growth across the funding pipeline.

• French President Emmanuel Macron called on wealthy democracies to collaborate on the regulation of advanced artificial intelligence systems during a high-level meeting in Evian-les-Bains. • The initiative involves cooperation between governments and top industry leaders, including OpenAI CEO Sam Altman, who echoed Macron's plea for unified regulation at the G7 summit.

• Tech leaders and policymakers are gathering in France for the G7 summit and the VivaTech conference to discuss the future of artificial intelligence. • European officials are expressing growing concern over their dependence on AI tools developed by U.S. companies, fearing a loss of digital sovereignty.

• European policymakers and tech executives are meeting at the G7 summit and VivaTech conference in Paris this week to address the region's lack of AI sovereignty. • The discussions center on Europe's heavy reliance on American AI technology and the scarcity of viable local alternatives.

• Europe is grappling with "tech sovereignty" in AI, facing a reality where full autonomy is financially and politically unattainable under current funding levels. • To address this, the Al Habtoor Research Centre suggests a strategic "layer-by-layer" approach, focusing on areas of genuine comparative advantage rather than the entire tech stack.

• The tech sector warns that Europe must choose between its AI ambitions and climate goals, claiming only carbon-emitting gas plants currently provide the reliability needed to power data centers. • EU Energy Commissioner Dan Jørgensen countered that data centers are only welcome if they actively support the energy transition through renewable energy deployment and waste heat recycling.

• Anthropic recently withheld the release of its Claude Mythos AI model due to "unprecedented cybersecurity risks" that were deemed too severe for public deployment. • The Centre for European Policy Studies (CEPS) warns that while the EU is advancing AI governance, it is failing to build its own competitive AI infrastructure.

• European Commission President Ursula von der Leyen's pursuit of "digital sovereignty" is facing economic challenges as of summer 2026. • Despite Brussels investing billions of euros to achieve technological independence, current quarterly data indicates that U.S. and European tech ecosystems remain deeply interdependent.

• European leaders are prioritizing "technological sovereignty" during the G7 summit and VivaTech conference in France to reduce the region's heavy reliance on American AI firms. • The discussions center on enhancing AI competitiveness and implementing strategic regulations to foster a more independent European tech landscape.

• European leaders at the G7 summit in Evian and VivaTech conference in Paris are discussing technological sovereignty. • The talks come after a U.S. directive banned foreign nationals from using Anthropic's Fable 5 and Mythos 5 AI models on national security grounds.

• European leaders are prioritizing "AI sovereignty" during the G7 summit in Evian and the VivaTech conference in Paris this week. • The urgency follows recent U.S. restrictions on access to Anthropic’s most advanced AI models, highlighting Europe's dependence on American technology.

• ECB President Christine Lagarde warned that AI could trigger financial crises, emphasizing that such systemic collapses—rather than the technology itself—are what destroy jobs and savings. • To mitigate these risks, Lagarde proposed a global governance framework for AI modeled after Cold War-era nuclear non-proliferation treaties.