Breaking AI & Tech News Analyzed

Over 1,000 workers in Kenya have been laid off by Sama, a company contracted by Meta for content moderation and AI training work. The layoffs came after Meta terminated its contract with Sama, citing that the company did not meet its standards.The sacked workers, many involved in AI training, were given only six days' notice, according to the Oversight Lab, an organization advocating for fair regulation and deployment of technology across Africa. The lab is advising the workers on legal options.This move has been criticized by activists, who argue that it exposes the precariousness of tech jobs in the global south. Kauna Malgwi, a former worker at Sama, stated that "this issue is not confined to one company or contract. It shows how the global AI industry is shaped. Power sits with large technology companies. Risk flows downward, affecting outsourced workers, often in the global south, who have the least protection and highest exposure."Sama has stated that it recognizes the impact on its team and is supporting affected employees with care and respect, highlighting that its teams receive living wages and full benefits.The layoffs have been described as devastating and shocking by the Oversight Lab, which called for recognition that current strategies are harming youth, hurting the economy, and not advancing Kenya's participation in the AI ecosystem.

Chinese President Xi Jinping has met with Russian Foreign Minister Sergey Lavrov, calling for closer and stronger strategic coordination between Beijing and Moscow. The meeting took place in the Great Hall of the People in Beijing, where Xi emphasized the need to firmly defend their legitimate interests and safeguard the unity of Global South countries.Xi described the stability and certainty of China-Russia relations as particularly precious in an international landscape marked by change and chaos. This comes as the world faces growing fears over the shutdown of the Strait of Hormuz, which could trigger a global food crisis as critical fertiliser and fuel exports are blocked.Lavrov told a news conference after meeting Xi that Moscow could compensate for China’s energy shortages as shipping through the strait remains choked. China and Russia are not formal military allies but maintain extremely close economic and political ties, with Xi signing a 'no limits' strategic partnership with President Vladimir Putin in 2022.The visit by Lavrov to Beijing this week also included meetings with other leaders, such as Spanish Prime Minister Pedro Sanchez, Abu Dhabi’s Crown Prince Mohamed bin Zayed Al Nahyan, and Vietnamese leader To Lam. In talks with Sanchez, Xi warned that the world was facing 'chaos and turmoil' and 'a contest between justice and force', urging closer cooperation.

OECD preliminary figures reveal a 23% decline in international development assistance between 2024 and 2025, the steepest annual fall recorded since the organization began tracking aid.The United States was the primary catalyst, with its official development assistance slashing nearly 57% in 2025, a reduction that accounts for roughly three‑quarters of the overall drop.Total aid from the 34 DAC members fell from $214.6 billion to $174.3 billion. American contributions shrank from about $63 billion in 2024 to just under $29 billion the following year, according to the OECD.Other major donors—including Germany, the United Kingdom, Japan and France—also trimmed their budgets, and only eight DAC countries managed to meet or exceed their 2024 levels.The cuts arrive at a time of heightened global economic and food‑security uncertainty, exacerbated by the ongoing US‑Israeli conflict with Iran.OECD official Carsten Staur described the plunge as “deeply concerning,” urging donors to reverse the trend as humanitarian needs surge. Oxfam’s Development Finance Lead Didier Jacobs warned that wealthy governments are “turning their backs on millions of lives in the Global South” by cutting life‑saving aid while funding conflict.Academic research links the U.S. reductions to a rise in armed conflict across Africa, with the Center for Global Development estimating that the cuts could have caused between 500,000 and 1,000,000 excess deaths in 2025. A Lancet analysis warns that continuing the downward trajectory may result in **over 9.4 million additional deaths by 2030**.Under President Trump, the United States has dismantled the U.S. Agency for International Development (USAID) and pursued a handful of bilateral agreements with African nations that tie aid to mineral access and health data. Simultaneously, the administration is seeking a historic $1.5 trillion military budget for FY2027** and between **$80 billion and $200 billion** for the Iran‑Israel war effort.Analysts and NGOs are calling on DAC members to restore aid levels and reinforce the global humanitarian system, which they say faces its most serious crisis in decades.

Europe is undergoing a significant transformation in its relationship with the US, marked by a growing desire for independence and a shift away from Trump's aggressive policies. The recent crisis in the Middle East, where Trump's threat to annihilate Iranian civilisation was temporarily called off, has been a turning point in this journey. Initially, many European leaders had tacitly supported the US and Israeli attack on Iran, driven by a desire for a transatlantic detente and antipathy towards the Iranian regime. However, as the war escalated, Europe's stance began to shift, with countries like Italy, Poland, and France taking steps to distance themselves from Trump's policies. The cooling of European support for the war has taken various forms, including Italy denying US warplanes permission to use an airbase in Sicily, Poland refusing to send Patriot air defence systems to the Middle East, and France rejecting overflight rights and opposing a US-sponsored resolution at the UN security council. This shift in European policy is driven by a number of factors, including the realisation that the war has been a windfall for Russia, through higher oil prices and a depletion of air defence interceptors available to Ukraine. European leaders have also been reminded that the erosion of international law is bad news for the world, Europe included. As Europe finds its footing in distancing itself from Trump, it may also find its voice. Europe's diplomatic role in the Iranian nuclear file in the early 2000s grew out of its opposition to the Iraq war. Today, the same dynamic could unfold, with Europe promoting a permanent end of hostilities and a multilateral initiative in the region. The proposal by a group of European, Gulf, and Asian countries to contribute to ensuring safe passage through the strait of Hormuz was originally aimed at placating Trump. Europeans then backed a UN-led fertiliser corridor to prevent a food crisis in the global south. The UK is also leading a coalition of more than 40 countries seeking to reopen the strait once the US and Israel definitively end their offensive. If a sustainable reopening of Hormuz succeeds, it could eventually extend to a new nuclear agreement, a non-aggression pact between the US and Iran, and a similar one between Israel and Iran – including Lebanon. It could involve the release of Iranian funds frozen abroad to rebuild infrastructure destroyed by US and Israeli attacks, and the selective lifting of EU and US sanctions.

Turkey has emerged as the world’s most aggressive adopter of grid‑scale battery storage, with more than 33 GW approved since 2022, according to a new Ember analysis. That figure dwarfs the total planned and operational capacity of leading EU nations such as Germany and Italy, which together sit at roughly 12‑13 GW.The surge reflects a 2022 mandate that grants preferential grid access to renewable projects that pair generation with an equal amount of storage. Of the 221 GW of battery projects submitted, Turkey has green‑lit 33 GW—equivalent to about 83% of its current wind and solar capacity. Only Romania in the EU shows a higher storage‑to‑renewable ratio.Policy analyst Ufuk Alparslan of Ember described the move as a “massive investment signal” that could make Turkey the backbone of a new, clean regional energy hub, especially ahead of the Cop31 climate summit in Antalya this November.Cost declines have been a key catalyst: the price of solar panels and battery packs has fallen by nearly 90% over the past decade, unlocking affordable, reliable power for countries in the global south. University of Wisconsin‑Madison researcher Greg Nemet noted that this price plunge creates “a tremendous opportunity for a cheap, clean and reliable energy system.”Despite the battery boom, Turkey’s energy mix remains heavily coal‑dependent, with coal accounting for 34% of electricity generation last year. The nation generates roughly one‑fifth of its power from wind and solar—higher than any Middle Eastern or Central Asian country but still below the European average.Turkey aims to boost installed wind and solar capacity to 120 GW by 2035, up from the current 40 GW. However, the 6.5 GW added in the most recent year fell short of the 8 GW needed to stay on track, highlighting implementation challenges.Alparslan cautioned that the ambitious battery pipeline faces hurdles, including permit bottlenecks and reliance on volatile spot‑market electricity prices. Moreover, Turkey’s extensive hydropower resources lessen the immediate need for large‑scale batteries compared with many European states.Nevertheless, the country’s decisive policy stance sends a clear message: even as the global fossil‑fuel crisis intensifies—exacerbated by geopolitical tensions such as the Iran‑Hormuz conflict—Turkey is positioning itself at the forefront of the clean‑energy transition.

The recent UN General Assembly resolution, led by Ghana, has made a significant statement by declaring the transatlantic slave trade 'the gravest crime against humanity'. Adopted with 123 votes in favor, 3 against, and 52 abstentions, this resolution urges steps including formal apologies, reparatory justice, and the return of looted cultural property.The voting pattern revealed a stark divide, with much of Africa, the Caribbean, and the global south supporting the resolution as a moral imperative. In contrast, Western countries, including the US, Israel, and Argentina, which voted against it, and the UK and EU member states, which abstained, reacted as if acknowledgment itself were a threat to their comfort.Ghanaian President John Dramani Mahama emphasized that the resolution is 'a pathway to healing and reparative justice' and 'a safeguard against forgetting'. The resolution aims to establish, at the highest level, a crime whose scale, brutality, and enduring consequences continue to structure the present.The backlash against the resolution has been revealing, with objections from Britain and the EU framed in terms of legal caution. They argued that the resolution creates a 'hierarchy of historical atrocities' and that the slave trade was not prohibited by international law at the time. However, this stance is seen as a way to avoid confronting the world-making role of transatlantic slavery.The Caribbean Community (Caricom)'s 10-point plan for reparatory justice is crucial in this context. For over a decade, Caricom has insisted that reparatory justice is not merely about writing cheques but about linking formal apologies to development, public health, education, and other areas. The UN resolution is seen as a first step in creating political and moral architecture for reparations claims.The fear of Western countries is not of rhetoric but of precedent. Once the slave trade is officially recognized as foundational and still alive in its consequences, questions about debt, underdevelopment, museum collections, and trade structures inevitably follow. The resolution has exposed who wants the wealth from slavery to remain history's most profitable amnesia.

Donald Trump’s demand that Iran reopen the Strait of Hormuz has an immediate impact on U.S. gasoline prices, but analysts warn that a prolonged conflict will push energy costs higher across the globe, far beyond the fuel pump. Systemic increases in power prices and disrupted supply chains are set to compress margins for industries worldwide; in the United States, the effect could be especially damaging to the fragile economics of the AI boom. Oil‑importing nations in the Global South are already feeling the strain: Egypt has imposed curfews, Indonesia is trialling work‑from‑home Fridays, and the Philippines has declared a national energy emergency. While the United States, as a major oil exporter, can partially insulate itself, the country cannot escape the global rise in energy costs. Experts predict that price pressure will linger for months even if the strait reopens within days. Companies are revisiting cash‑flow forecasts, and the AI sector—characterised by energy‑intensive model training and debt‑laden expansion—faces a particularly acute risk. OpenAI chief Sam Altman attempted to downplay environmental concerns, likening the energy required to train an AI model to the cumulative food intake over a human’s 20‑year development. The Bank of England’s Financial Policy Committee warned that rising energy costs could depress AI share prices, noting that investors were already uneasy about the sector’s heavy reliance on debt financing and uncertain return prospects before the war began. "The conflict could increase these concerns, particularly given the energy‑intensive nature of the supply chain for key components and the operation of datacentres," the committee said. World Trade Organization chief economist Robert Staiger echoed this view, cautioning that a prolonged period of high energy prices could "crimp" AI investment. He highlighted that AI‑related goods accounted for 70% of U.S. investment growth in the first three‑quarters of last year. A forensic note from US law firm Quinn Emanuel revealed that the AI sector generated roughly $60 billion in revenue last year while committing $400 billion to capital expenditure. The financing structure mirrors the 2008 crisis, with off‑balance‑sheet special purpose vehicles and asset‑backed securities playing a central role. Leading "hyperscalers" and infrastructure providers such as CoreWeave are borrowing enormous sums to build out datacentres, although some analysts argue that many projects lag behind their lofty promises. Much of this borrowing comes from private‑credit lenders, making total liabilities opaque and challenging for regulators—an issue the Bank of England has repeatedly flagged. Complex financing arrangements see datacentres owned by special purpose vehicles, debt pooled and sold to pension funds, and other layered structures that obscure true exposure. Quinn Emanuel estimates that $120 billion of datacentre debt has been moved off‑balance sheets in the past two years. The firm warns that distress at any single node could cascade through the tightly interconnected AI ecosystem. Extended higher energy costs, combined with volatile interest rates and weaker consumer demand—both likely fallout from the Middle East war—could trigger that distress. The fundamental question remains: can the AI sector generate sufficient revenue to justify its sky‑high valuations? Even modest energy price hikes may force a market rethink, with potential spill‑over effects across U.S. markets and beyond. As the article concludes, the economic fallout may be yet another unintended consequence of Trump’s aggressive stance on Iran, unleashing forces beyond his control.

The global super-rich may have as much as $3.55 trillion hidden away from tax authorities, according to estimates by Oxfam. This staggering amount is more than 3% of global GDP and is likely to be owned by the richest 0.1% of households.Oxfam's latest analysis reveals that total wealth held offshore has increased significantly to $13.25 trillion in 2023. While the share of secretive holdings hidden from tax authorities has fallen since the introduction of a new system of automatic information exchange between jurisdictions in 2016, Oxfam estimates that a substantial amount remains shielded from tax.The charity's lead on tax, Christian Hallum, emphasized that this isn't just about clever accounting, but about power and impunity. When millionaires and billionaires stash trillions of dollars in offshore tax havens, they place themselves above the obligations that bind the rest of society.Oxfam is part of a global campaign to mobilize calls for a global progressive wealth tax, including through negotiations at the UN on a framework for tax cooperation. The charity is also calling for countries in the global south to be included in the Common Reporting Standard – the system that allows for information exchange between jurisdictions.In the UK, Oxfam is urging Labour to implement a wealth tax, with the Green leader in England and Wales, Zack Polanski, suggesting a tax levied annually at a rate of 1% on assets worth more than £10m, and 2% above £100m. The Green party claims this policy would raise about £15 billion a year.

The UK government's recent announcement to make significant cuts to direct aid to Africa and the Middle East has been met with deep disappointment. This move is seen as a moral dereliction of duty, betraying the world's most marginalised, and a false economy that will bring greater instability to the world and make people less safe. The cut in aid to 0.3% of gross national income (GNI) from 2027 breaks Labour's 2024 manifesto pledge to restore development spending at the level of 0.7% of GNI “as soon as fiscal circumstances allow”. The UK is making the steepest proportion of aid cuts among G7 nations. As James Mattis, Donald Trump's defence secretary, once said: “If you don’t fund the state department fully, then I need to buy more ammunition ultimately.” This highlights the shortsightedness of cutting aid, which could lead to more conflict, famine, and persecution. The UK itself benefits materially from these investments. The recent inquiry by the all-party parliamentary group on global health and security on international health worker recruitment highlights the extent to which the NHS and wider economy rely on the skills, expertise, and partnerships rooted in the global south. The UK has saved £14bn in training costs through international recruitment and continues to depend on globally trained health professionals. Investment in global vaccination, disease surveillance, and research helps stop outbreaks before they spread internationally and place pressure on health systems. Preventing disease at source is one of the smartest investments we can make to protect patients in Britain. The situation in Somalia, on the edge of famine, underscores the importance of sustained investment in global development. Two consecutive failed rainy seasons have left 6.5 million people in crisis, more than double the number a year ago. The UK's humanitarian relief in Somalia is welcome, but the scrapping of nature funding and cuts to climate aid risk compromising its own strategy of preventing crisis before it takes hold.