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AI and the Future of Human Development
Also: Trump’s AI Deals in the Gulf

Hello!
Today’s top stories offer a sweeping look at the evolving intersection of AI, geopolitics, and global development. The UN’s latest Human Development Report underscores how AI could both empower and divide, as unequal exposure threatens to widen the gap between advanced and developing economies. In the Gulf, Trump-era figures are brokering massive chip deals with Nvidia and AMD to fuel a new AI campus in Abu Dhabi, raising strategic and security concerns. Meanwhile, Nvidia signaled a shift in its China strategy, hinting at new chips tailored to U.S. export controls, while domestic Chinese rivals move to capitalize. Elon Musk’s xAI scrambled to contain fallout after Grok’s rogue update, bringing prompt security into the spotlight. Microsoft’s confirmation that its AI assisted in Israeli military operations opens a new chapter in debates around dual-use AI ethics. On the tools front, OpenAI’s Codex positions ChatGPT as a full-stack coding assistant, and Google expands Gemini’s accessibility capabilities with on-screen narration. Finally, G42 is injecting $1 billion into Italy’s iGenius to build Europe’s most powerful AI supercomputer, deepening the UAE’s AI footprint on the continent.
Sliced just for you:
🌐 AI and the Future of Human Development
🌍 Trump’s AI Deals in the Gulf
🚀 Nvidia Signals Fresh Silicon Strategy for China Market
💬 xAI’s Grok Scrambles to Patch Bias After Rogue Update
⚔️ Microsoft Confirms Azure AI Assisted Israeli Hostage-Rescue Ops

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The United Nations Development Programme (UNDP) has released its annual Human Development Report, revealing that progress in human development has remained sluggish since the COVID-19 pandemic. The report suggests that AI could play a crucial role in improving millions of lives if harnessed appropriately. However, it also warns that AI may exacerbate inequalities between rich and poor countries. In Asia, advanced economies are more exposed to AI, with approximately half of all jobs potentially impacted, compared to only about a quarter in emerging markets and developing economies. To mitigate these risks, the report recommends that policymakers implement more effective social safety nets, reskilling programs, and regulations to ensure the ethical use of AI. Additionally, the report highlights the need for increased investment in AI safety and responsible use, as global private AI investment has reached record levels.
American chip giants Nvidia and AMD have been granted permission to sell advanced chips to customers in Saudi Arabia, the United Arab Emirates, and Qatar for AI development. This move is part of a broader initiative to establish a new AI campus in Abu Dhabi, which aims to rival OpenAI’s Stargate project in scale. The deals were brokered by David Sacks and Sriram Krishnan, President Trump’s AI advisers, who collaborated with Nvidia CEO Jensen Huang, Sam Altman of OpenAI, and Khaldoon Al Mubarak of Mubadala Investment, a key player in AI financing. However, these agreements have raised security concerns, with some officials contemplating a pause due to fears that the technology could be misused or fall into the wrong hands. This development follows previous restrictions by the Biden administration on advanced tech exports to the region, primarily due to concerns over potential technology transfer to China.
Speaking in Taipei, Nvidia chief Jensen Huang ruled out further “Hopper-lite” derivatives for China, hinting the next export-compliant accelerator will debut under a new architecture optimized from the ground up for tighter U.S. performance caps. Analysts read the remark as confirmation that iterative down-clocks of flagship dies no longer satisfy both commerce rules and customer demand. Huang reiterated China’s 13 percent sales share and called for “regulations that maximize American tech’s footprint worldwide,” a not-so-subtle plea for streamlined licensing. Domestic competitors like Huawei and Biren seized on the commentary to tout their own roadmaps, suggesting a brisker shift toward indigenous GPUs if Nvidia’s next part slips into 2026.
xAI acknowledged that an unauthorized system-prompt tweak caused its Grok chatbot to invoke the debunked “white genocide” trope when answering unrelated queries. Engineers rolled back the change, open-sourced all prompt history on GitHub and instituted 24/7 human-in-the-loop monitoring to catch future anomalies. The incident spotlights the governance tightrope for “open-prompt” initiatives: transparency can speed community audits, but also exposes attack surfaces for ideological vandalism. Advertisers paused several pilot integrations pending fixes; xAI says new guardrails will quarantine politically sensitive topics into separate review pipelines. Industry observers note the swift response contrasts with slower clean-ups at rival platforms, suggesting competitive pressure is nudging faster accountability.
Responding to activist queries, Microsoft revealed that its cloud vision services and custom GPTs helped Israeli forces sift drone video and decrypt militant radio chatter during hostage-recovery missions in Gaza. The company emphasized it found “no evidence” the tech was used for kinetic targeting, but civil-society groups demanded fuller audits. Legal scholars note the disclosure could test emerging norms around dual-use AI exports, especially as cloud providers claim limited visibility into downstream applications. With the conflict still acute, the admission may spur calls for mandatory end-use reporting akin to conventional arms agreements, reshaping how hyperscalers vet military contracts going forward.
🛠️ AI tools updates
OpenAI opened a research preview of Codex, a sandboxed agent powered by its codex-1 model that spins up cloud VMs, pulls GitHub repos and iteratively writes, tests and documents code—sometimes in parallel threads. Early users report it can scaffold micro-services in under 30 minutes and refactor legacy Python to Rust with test coverage above 85 percent. Access is free for Pro, Team and Enterprise subscribers at launch, with pay-as-you-go credits to follow. Safety work borrows from o3: Codex refuses malware prompts and runs in an air-gapped environment to limit supply-chain risk. The rollout signals OpenAI’s intent to chase the booming “AI pair-programmer” market now dominated by rivals like Cursor and Claude Code.
Timed for Global Accessibility Awareness Day, Google pushed an Android-and-Chrome update that lets Vision-OS users ask Gemini what’s on-screen or in a photo, receiving contextual audio descriptions in seconds. The feature works offline for basic objects via on-device quantized models, then escalates to the cloud for nuanced scenes or text translation. Google says latency averages 620 milliseconds on Pixel 9 hardware, and end-to-end encryption keeps images transient. Developers can hook the same API to create narration layers for games and AR apps, aligning with Google’s broader push to “infuse helpful AI into every pixel.” Early testers praise the independence boost, though disability advocates want guarantees that personal images aren’t retained for training.
💵 Venture Capital updates
On the sidelines of the Investopia summit in Milan, UAE tech conglomerate G42 signed a term sheet to pump $1 billion over five years into iGenius, seeding a southern-Italy AI hub dubbed Colosseum. The project will marry Nvidia‐powered clusters with renewable Puglia grid connections, aiming to deliver 20 exaFLOPs for European enterprises starved of sovereign compute. Italian officials call it the largest single AI hardware investment ever on EU soil and expect regional tax incentives to unlock follow-on VC for adjacent startups. The cash infusion also cements G42’s strategy of exporting Gulf capital and AI know-how into strategic foreign markets.
🫡 Meme of the day

⭐️ Generative AI image of the day

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