China’s Premier Li Proposes Global AI Cooperation Organization

Chinese Premier Li Qiang is seen on a screen as he speaks at the opening ceremony of the World Artificial Intelligence Conference in Shanghai on July 26, 2025. (AFP)
Chinese Premier Li Qiang is seen on a screen as he speaks at the opening ceremony of the World Artificial Intelligence Conference in Shanghai on July 26, 2025. (AFP)
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China’s Premier Li Proposes Global AI Cooperation Organization

Chinese Premier Li Qiang is seen on a screen as he speaks at the opening ceremony of the World Artificial Intelligence Conference in Shanghai on July 26, 2025. (AFP)
Chinese Premier Li Qiang is seen on a screen as he speaks at the opening ceremony of the World Artificial Intelligence Conference in Shanghai on July 26, 2025. (AFP)

Chinese Premier Li Qiang on Saturday proposed establishing an organization to foster global cooperation on artificial intelligence, calling on countries to coordinate on the development and security of the fast-evolving technology.

Speaking at the opening of the annual World Artificial Intelligence Conference in Shanghai, Li called AI a new engine for growth but said governance is fragmented and emphasizing the need for more coordination between countries to form a globally recognized framework for AI.

The three-day event brings together industry leaders and policymakers at a time of escalating technological competition between China and the United States - the world's two largest economies - with AI emerging as a key battleground.

"Overall global AI governance is still fragmented. Countries have great differences particularly in terms of areas such as regulatory concepts, institutional rules," Li said. "We should strengthen coordination to form a global AI governance framework that has broad consensus as soon as possible."

Washington has imposed export restrictions on advanced technology to China, including the most high-end AI chips made by companies such as Nvidia and chipmaking equipment, citing concerns that the technology could enhance China's military capabilities.

Despite these restrictions, China has continued making AI breakthroughs that have drawn close scrutiny from US officials.

Li did not name the United States in his speech but he warned that AI could become an "exclusive game" for a few countries and companies, adding that challenges included an insufficient supply of AI chips and restrictions on talent exchange.

GOVERNANCE PLAN

China wants to share its development experience and products with other countries, especially those in the Global South, Li said.

Also on Saturday, China released an action plan for global AI governance, in which it invited governments, international organizations, enterprises and research institutions to work together and promote international exchanges including through a cross-border open-source community.

The plan proposes accelerating digital infrastructure such as clean power, new-generation networks and data centers, according to a statement from China's foreign ministry.

The AI conference is an annual government-sponsored event in Shanghai that typically attracts major industry players, government officials, researchers and investors.

Saturday's speakers included Anne Bouverot, the French president's special envoy for AI, computer scientist Geoffrey Hinton, known as "the Godfather of AI", and former Google CEO Eric Schmidt.

Tesla CEO Elon Musk, who has in past years regularly appeared at the opening ceremony in person or by video, did not speak this year.

Besides forums, the conference features exhibitions where companies demonstrate their latest innovations.

This year, more than 800 companies are participating, showcasing more than 3,000 high-tech products, 40 large language models, 50 AI-powered devices and 60 intelligent robots, according to organizers.

The exhibition features predominantly Chinese companies, including tech giants Huawei and Alibaba and startups such as humanoid robot maker Unitree. Western participants include Tesla, Alphabet and Amazon.



Microsoft's Cloud Growth, Cash Flow Offer Respite from AI Spending Fears

FILE PHOTO: The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes/File Photo
FILE PHOTO: The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes/File Photo
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Microsoft's Cloud Growth, Cash Flow Offer Respite from AI Spending Fears

FILE PHOTO: The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes/File Photo
FILE PHOTO: The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes/File Photo

Microsoft on Wednesday delivered a big cash flow beat and forecast strong cloud growth, offering fresh evidence that its hefty AI bets were paying off even as concerns mount over Big Tech's spending spree.

The results underscore a widening financial divide among the industry's biggest AI spenders, as soaring infrastructure costs force some rivals to turn more heavily to capital markets.

Microsoft's shares rose more than 3% in after-hours trading. The company posted market-beating 48% growth in its Azure cloud business in its fiscal first quarter ended September, and generated $18.6 billion in free cash flow — some $10 billion more than analysts expected.

That financial firepower set the maker of the Windows operating system apart from rivals such as Alphabet and Meta, whose heavy AI investments have squeezed free cash flow and increased their reliance on borrowing.

Alphabet reported negative free cash flow of $9.07 billion in the third quarter as capital spending jumped and growth in its core ad business slowed, overshadowing a doubling of its cloud sales and sending its shares down 8% in extended trading. Meta last week posted its first cash burn in more than ⁠a decade, and said ⁠it planned to issue new stock to fund its growing capital costs.

"Microsoft's first-quarter report was about as clean as it gets for a company this size," said Jesse Cohen, senior analyst at Investing.com. "After Meta's and Alphabet's numbers revived AI-spending anxiety, this is the counterweight. Demand still exceeds supply, the commercial backlog is enormous, and returns are finally showing up in earnings and overall revenue."

The results also showed Microsoft capitalizing on corporate demand for AI, easing fears that the technology threatens its software empire and that its AI fortunes are too closely tied to unprofitable OpenAI. Still, its ties to the AI lab netted it $10 billion in revenue in the September quarter.

Microsoft shares have risen about 9% so far this year compared with a 13% rise in the S&P 500 ⁠index.

Microsoft's five-year credit default swaps — a measure of perceived default risk — remain the tightest among the largest tech companies, according to Truist, even as spreads have widened across much of the AI trade.

Reuters said that CEO Satya Nadella has sought to capture enterprise demand by giving customers cheaper options, as businesses grapple with the rising cost of deploying AI.

On a conference call with analysts, Nadella said the company was giving customers a range of AI options, some of them at lower cost than cutting-edge AI models such as Anthropic. The company is trying to make its Copilot products more useful with each model release by "consolidating the frontier gains for broad deployment," he added.

Last month, Microsoft said it would disclose Azure revenue in dollars, instead of just growth rates, offering a clearer picture of how its cloud business stacks up against rivals Amazon Web Services and Google Cloud.

Revenue at Microsoft's Azure cloud computing business grew to $33.17 billion in the quarter, topping Visible Alpha's estimate of $32.84 billion. Overall revenue rose by a fifth to $92.28 billion, and an adjusted profit of $4.89 per share beat an average estimate of $4.73 a share.

The company expects second-quarter Azure growth of 49% to 50%, above analyst estimates ⁠of 47.6%, according to Visible Alpha ⁠data. It forecast total sales of $96 billion to $97.1 billion, above estimates of $95.6 billion, according to LSEG data.

Capital expenditure for the quarter rose to $45.2 billion from $34.9 billion in the year-ago period, but came in below the company's own projection of $50 billion. So far in calendar 2026, Microsoft's capital expenditure has been $118.1 billion, which means it would have to spend $56.9 billion in the final three months of the year to hit its own forecast of $175 billion given in July.

Jonathan Neilson, Microsoft's vice president of investor relations, attributed the lower-than-expected capital expenditure to delays rather than any changes to the company's underlying spending plans.

"We did see some third-party capacity deliveries that we expected in first quarter were actually delayed," Neilson said.

Earlier on Wednesday, hyperscaler Oracle said it expects capital spending to peak this fiscal year and next, but pledged to raise no more than $20 billion in additional financing for AI through fiscal 2030.

Overall, Big Tech is expected to pump more than $700 billion this year into building data centers and securing the hardware and energy needed to develop and run AI technologies.

While faster revenue growth at these companies indicates their bets could be paying off, concerns over the cost of financing the outlay have heightened over the past few weeks.

Shrinking cash flows and rising debt loads at US tech companies, including recent stress at neocloud company CoreWeave as well as record-high costs to insure Meta's debt against default, have added to market turmoil.


Apple Shows First Touchscreen Laptops Amid Product Blitz

The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)
The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)
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Apple Shows First Touchscreen Laptops Amid Product Blitz

The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)
The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)

Apple CEO John Ternus unveiled the company's first touchscreen MacBooks on Wednesday, abandoning a long-held aversion to the technology as it caps a burst of product launches ahead of the holiday shopping season.

Ternus, a former Apple hardware veteran and the company's new CEO, took the stage at an Apple event in Los Angeles, part of a media blitz filled with new product launches.

He launched a folding iPhone, Duo, at Apple's Silicon Valley headquarters in September and a smart home hub in New York earlier this month. While those ‌products will test ‌new markets for Apple, the Los Angeles event ‌could ⁠rekindle an old question: should ⁠Apple put the touchscreens that it made mainstream in iPhones and iPads in its oldest product line?

Apple executives long resisted the idea, with Steve Jobs saying in 2010 that touchscreens on laptops were "ergonomically terrible" and then-CEO Tim Cook saying in 2012 that such devices would be as pleasing to users as converging a toaster and a refrigerator.

Before becoming Apple's ⁠latest CEO, Ternus argued that Apple already made a touchscreen ‌computer with its iPad lineup.

But touchscreens ‌have been widely available for more than a decade on Windows devices, ‌and with the iPhone nearing its two-decade anniversary, a new generation of ‌buyers expects screens to respond to touch.

"I believe they were always wrong on pushing back on touch, and this is the long arm of reality setting in," said Anshel Sag, an analyst at Moor Insights & Strategy. "Some things are purely ‌inevitable."

A key question for Apple is how customers will respond. The company has seen an uptick in ⁠Mac sales, ⁠but much of that growth has been among technology enthusiasts and businesses buying the machines to handle AI tasks on-device.

While Apple this week announced an upgraded base model of its MacBook Pro with a new M6 chip, Bloomberg News has reported that it plans to ship touchscreen models with its existing M5 Pro and M5 Max chips that already come in MacBook Pro models, meaning the new machines would not gain a significant performance boost over existing ones.

"The only thing people want is more memory and better processors for local models!" prominent tech commentator Jason Calacanis, the host of the All-In Podcast, wrote on X.


Data Center Next Door Divides Old Massachusetts Mill Town

This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)
This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)
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Data Center Next Door Divides Old Massachusetts Mill Town

This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)
This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)

Retiree Eileen Castle hasn't been able to enjoy her backyard since a data center moved in next door in Lowell, Massachusetts, bringing noise, fumes, dust and water mist.

But a few streets away, contractor Louis Haas is grateful to Markley, the company running the facility, for redeveloping an abandoned site he says was rife with drug use.

Dubbed "the Dungeon" by some locals for the imposing black silhouette it casts over a residential neighborhood of this old milling city, those opposing views encapsulate how data centers are polarizing communities across the United States.

Republican-governed states, with their looser regulations, host most of the country's current AI build-out. But in liberal-leaning New England, some feel betrayed by their elected representatives, while others fear being left behind if the industry is curbed.

- 'Nothing but noise' -

Over the din of construction behind a spiked fence, Castle, 82, told AFP her great-great-grandparents bought the property.

But since the data center moved into a disused pasta factory a decade ago, "We have had nothing but noise.

We have dust, dirt. We have all kinds of mist" from the adjoining cooling towers, which she fears could carry Legionnaires' disease.

Noxious fumes made a long interview outdoors impossible, and she lamented that her grandchildren can no longer swim in her small pool.

"I think every once in a while that maybe I should sell my house," she says, but adds her property value has plummeted.

"The Markley Group serves more than 600 clients in Massachusetts and connects the digital infrastructure that powers our economy, our schools, and the everyday needs of our community," Markley Group CEO Jeff Markley said in a statement to AFP.

The company said its backup diesel generators run only for five minute tests each week and, thanks to abatement efforts, produce "about 44 decibels of sound, quieter than a soft conversation three feet away."

It said it tests its water twice a year for Legionnaires', and has planted 2,000 trees.

In 2015, the city council gave Markley a 20-year property and personal property tax break estimated at $77 million, the Lowell Sun newspaper reported at the time.

Enthusiasm has since cooled. In March, the council unanimously passed a 360-day moratorium on construction and expansion of commercial data centers, though Markley's 352,000-square-foot site was grandfathered in.

Residents represented by the Conservation Law Foundation (CLF) and others have sued to challenge its expansion, which included increasing the number of generators to 27, and won a temporary injunction in August.

CLF attorney Adam Reynolds told AFP that it is the "compounding effect of pollution that's really significant" in a historically industrial area.

- Community divisions -

Markley has supporters. Haas, 50, who supplies coffee to a major tech company, said the boom had been good to contractors like him.

"I'm a big liberal, I'm a Democrat. But I'm also pro-jobs and pro-economy," he told AFP.

Markley said it employs more than 100 full-time staff in Lowell, a third of them local. On top of that, over 100 unionized trades workers work on campus.

Another backer, Sarah Bibeau, a 43-year-old single mother of two who works in the defense sector, told AFP the company had been "kind and considerate," fixing roads and offering favors ranging from yard work to free Red Sox tickets.

Detractors include Jake Fortes, a 44-year-old travel agent who founded the group "Honest Future for Lowell" and whose property sits on the fence line.

"We're getting steamrolled by this company. So some of us have taken it to task," Fortes told AFP.

Like Castle, he feels let down by Democrats, including state Governor Maura Healey -- who signed a sales tax break for data centers into law but then paused new applications this year, a reversal that illustrates the party's dilemma.

Luz Marte, a 38-year-old lab technician, bought her house a year ago, without realizing the site was a data center.

"It sounds very loud, like an airplane is going to take off," she told AFP as her three-year-old son played.

Her home insurer recently moved to triple her premium, which she believes is linked to Markley buying a building even closer to her property.

"This is a home I bought for my son, to grow up, feel alive, and have a future," she said. "Now I'm doubting that idea."