AI Frontiers report: market, policy, tech highlights

The Center for Analysis and Development of Effective Policies (CADEP) and the National Institute for Strategic Studies (NISS) published the July 2025 report “AI Frontiers: innovations, breakthroughs, challenges” summarizing major AI market, policy, technology and security developments.

• Report highlights and concrete items: The digest compiles market moves and deals including OpenAI–Oracle: $30 billion per year cloud/data-center agreement; NVIDIA achieving $4 trillion market capitalization and resuming limited chip sales to China; Meta’s announcement to build a 5 gigawatt AI data center; Mistral AI negotiating a $1 billion funding round; Palo Alto Networks proposed acquisition of CyberArk for ~$25 billion; Auterion contract (~$50 million) to deliver 33,000 AI drone control kits to Ukraine (delivery target: by end of 2025 as noted in report). The UK–OpenAI memorandum targets scaling national compute fivefold over five years with a £1 billion budget commitment noted in the partnership description.

• Background, policy and implementation details: The report documents policy actions and timelines: the U.S. AI Action Plan (administration-level executive orders and 90 recommendations including export controls and streamlined environmental rules for data centers); European Commission rollout documents for EU AI Act implementation (voluntary GPAI code templates and guidance during transition); Pentagon agreements awarding up to $200 million per vendor (Google, OpenAI, Anthropic, xAI) for defense AI work; Taiwan’s AI industrial strategy projecting $510 billion economic uplift by 2040. Energy and infrastructure constraints are repeatedly flagged (e.g., xAI permitted to install 15 gas generators >80 MW for a Memphis datacenter; concerns about energy footprint of large data centers and supply-chain issues).