Editor’s note: This blog is a part of Into the Omniverse, a series focused on how developers, 3D practitioners and enterprises can transform their workflows using the latest advances in OpenUSD and NVIDIA Omniverse. Simulated driving environments enable engineers to safely and efficiently train, test and validate autonomous vehicles (AVs) across countless real-world and edge-case scenarios without the risks and costs of physical testing. These simulated environments can be created through neural reconstruction of real-world data from AV fleets or generated with world foundation models (WFMs) — neural networks that understand physics and real-world properties. WFMs can be used to generate synthetic datasets for enhanced AV simulation. To help physical AI developers build such simulated environments, NVIDIA unveiled major advances in WFMs at the GTC Paris and CVPR conferences earlier this month. These new capabilities enhance NVIDIA Cosmos — a platform of generative WFMs, advanced tokenizers, guardrails and accelerated data processing tools. Key innovations like Cosmos Predict-2, the Cosmos Transfer-1 NVIDIA preview NIM microservice and Cosmos Reason are improving how AV developers generate synthetic data, build realistic simulated environments and validate safety systems at unprecedented scale. Universal Scene Description (OpenUSD), a unified data framework and standard for physical AI applications, enables seamless integration and interoperability of simulation assets across the development pipeline. OpenUSD standardization plays a critical role in ensuring 3D pipelines are built to scale. NVIDIA Omniverse, a platform of application programming interfaces, software development kits and services for building OpenUSD-based physical AI applications, enables simulations from WFMs and neural reconstruction at world scale. Leading AV organizations — including Foretellix, Mcity, Oxa, Parallel Domain, Plus AI and Uber — are among the first to adopt Cosmos models. Foundations for Scalable, Realistic Simulation Cosmos Predict-2, NVIDIA’s latest WFM, generates high-quality synthetic data by predicting future world states from multimodal inputs like text, images and video. This capability is critical for creating temporally consistent, realistic scenarios that accelerate training and validation of AVs and robots. In addition, Cosmos Transfer, a control model that adds variations in weather, lighting and terrain to existing scenarios, will soon be available to 150,000 developers on CARLA, a leading open-source AV simulator. This greatly expands the broad AV developer community’s access to advanced AI-powered simulation tools. Developers can start integrating synthetic data into their own pipelines using the NVIDIA Physical AI Dataset. The latest release includes 40,000 clips generated using Cosmos. Building on these foundations, the Omniverse Blueprint for AV simulation provides a standardized, API-driven workflow for constructing rich digital twins, replaying real-world sensor data and generating new ground-truth data for closed-loop testing. The blueprint taps into OpenUSD’s layer-stacking and composition arcs, which enable developers to collaborate asynchronously and modify scenes nondestructively. This helps create modular, reusable scenario variants to efficiently generate different weather conditions, traffic patterns and edge cases. Driving the Future of AV Safety To bolster the operational safety of AV systems, NVIDIA earlier this year introduced NVIDIA Halos — a comprehensive safety platform that integrates the company’s full automotive hardware and software stack with AI research focused on AV safety. The new Cosmos models — Cosmos Predict- 2, Cosmos Transfer- 1 NIM and Cosmos Reason — deliver further safety enhancements to the Halos platform, enabling developers to create diverse, controllable and realistic scenarios for training and validating AV systems. These models, trained on massive multimodal datasets including driving data, amplify the breadth and depth of simulation, allowing for robust scenario coverage — including rare and safety-critical events — while supporting post-training customization for specialized AV tasks. At CVPR, NVIDIA was recognized as an Autonomous Grand Challenge winner, highlighting its leadership in advancing end-to-end AV workflows. The challenge used OpenUSD’s robust metadata and interoperability to simulate sensor inputs and vehicle trajectories in semi-reactive environments, achieving state-of-the-art results in safety and compliance. Learn more about how developers are leveraging tools like CARLA, Cosmos, and Omniverse to advance AV simulation in this livestream replay: Hear NVIDIA Director of Autonomous Vehicle Research Marco Pavone on the NVIDIA AI Podcast share how digital twins and high-fidelity simulation are improving vehicle testing, accelerating development and reducing real-world risks. Get Plugged Into the World of OpenUSD Learn more about what’s next for AV simulation with OpenUSD by watching the replay of NVIDIA founder and CEO Jensen Huang’s GTC Paris keynote. Looking for more live opportunities to learn more about OpenUSD? Don’t miss sessions and labs happening at SIGGRAPH 2025, August 10–14. Discover why developers and 3D practitioners are using OpenUSD and learn how to optimize 3D workflows with the self-paced “Learn OpenUSD” curriculum for 3D developers and practitioners, available for free through the NVIDIA Deep Learning Institute. Explore the Alliance for OpenUSD forum and the AOUSD website. Stay up to date by subscribing to NVIDIA Omniverse news, joining the community and following NVIDIA Omniverse on Instagram, LinkedIn, Medium and X.

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Enterprise artificial intelligence investment is unprecedented, with IDC projecting global spending on AI and GenAI to double to $631 billion by 2028. Yet beneath the impressive budget allocations and boardroom enthusiasm lies a troubling reality: most organisations struggle to translate their AI ambitions into operational success.The sobering statistics behind AI’s promiseModelOp’s 2025 AI Governance Benchmark Report, based on input from 100 senior AI and data leaders at Fortune 500 enterprises, reveals a disconnect between aspiration and execution.While more than 80% of enterprises have 51 or more generative AI projects in proposal phases, only 18% have successfully deployed more than 20 models into production.The execution gap represents one of the most significant challenges facing enterprise AI today. Most generative AI projects still require 6 to 18 months to go live – if they reach production at all.The result is delayed returns on investment, frustrated stakeholders, and diminished confidence in AI initiatives in the enterprise.The cause: Structural, not technical barriersThe biggest obstacles preventing AI scalability aren’t technical limitations – they’re structural inefficiencies plaguing enterprise operations. The ModelOp benchmark report identifies several problems that create what experts call a “time-to-market quagmire.”Fragmented systems plague implementation. 58% of organisations cite fragmented systems as the top obstacle to adopting governance platforms. Fragmentation creates silos where different departments use incompatible tools and processes, making it nearly impossible to maintain consistent oversight in AI initiatives.Manual processes dominate despite digital transformation. 55% of enterprises still rely on manual processes – including spreadsheets and email – to manage AI use case intake. The reliance on antiquated methods creates bottlenecks, increases the likelihood of errors, and makes it difficult to scale AI operations.Lack of standardisation hampers progress. Only 23% of organisations implement standardised intake, development, and model management processes. Without these elements, each AI project becomes a unique challenge requiring custom solutions and extensive coordination by multiple teams.Enterprise-level oversight remains rare Just 14% of companies perform AI assurance at the enterprise level, increasing the risk of duplicated efforts and inconsistent oversight. The lack of centralised governance means organisations often discover they’re solving the same problems multiple times in different departments.The governance revolution: From obstacle to acceleratorA change is taking place in how enterprises view AI governance. Rather than seeing it as a compliance burden that slows innovation, forward-thinking organisations recognise governance as an important enabler of scale and speed.Leadership alignment signals strategic shift. The ModelOp benchmark data reveals a change in organisational structure: 46% of companies now assign accountability for AI governance to a Chief Innovation Officer – more than four times the number who place accountability under Legal or Compliance. This strategic repositioning reflects a new understanding that governance isn’t solely about risk management, but can enable innovation.Investment follows strategic priority. A financial commitment to AI governance underscores its importance. According to the report, 36% of enterprises have budgeted at least $1 million annually for AI governance software, while 54% have allocated resources specifically for AI Portfolio Intelligence to track value and ROI.What high-performing organisations do differentlyThe enterprises that successfully bridge the ‘execution gap’ share several characteristics in their approach to AI implementation:Standardised processes from day one. Leading organisations implement standardised intake, development, and model review processes in AI initiatives. Consistency eliminates the need to reinvent workflows for each project and ensures that all stakeholders understand their responsibilities.Centralised documentation and inventory. Rather than allowing AI assets to proliferate in disconnected systems, successful enterprises maintain centralised inventories that provide visibility into every model’s status, performance, and compliance posture.Automated governance checkpoints. High-performing organisations embed automated governance checkpoints throughout the AI lifecycle, helping ensure compliance requirements and risk assessments are addressed systematically rather than as afterthoughts.End-to-end traceability. Leading enterprises maintain complete traceability of their AI models, including data sources, training methods, validation results, and performance metrics.Measurable impact of structured governanceThe benefits of implementing comprehensive AI governance extend beyond compliance. Organisations that adopt lifecycle automation platforms reportedly see dramatic improvements in operational efficiency and business outcomes.A financial services firm profiled in the ModelOp report experienced a halving of time to production and an 80% reduction in issue resolution time after implementing automated governance processes. Such improvements translate directly into faster time-to-value and increased confidence among business stakeholders.Enterprises with robust governance frameworks report the ability to many times more models simultaneously while maintaining oversight and control. This scalability lets organisations pursue AI initiatives in multiple business units without overwhelming their operational capabilities.The path forward: From stuck to scaledThe message from industry leaders that the gap between AI ambition and execution is solvable, but it requires a shift in approach. Rather than treating governance as a necessary evil, enterprises should realise it enables AI innovation at scale.Immediate action items for AI leadersOrganisations looking to escape the ‘time-to-market quagmire’ should prioritise the following:Audit current state: Conduct an assessment of existing AI initiatives, identifying fragmented processes and manual bottlenecksStandardise workflows: Implement consistent processes for AI use case intake, development, and deployment in all business unitsInvest in integration: Deploy platforms to unify disparate tools and systems under a single governance frameworkEstablish enterprise oversight: Create centralised visibility into all AI initiatives with real-time monitoring and reporting abilitiesThe competitive advantage of getting it rightOrganisations that can solve the execution challenge will be able to bring AI solutions to market faster, scale more efficiently, and maintain the trust of stakeholders and regulators.Enterprises that continue with fragmented processes and manual workflows will find themselves disadvantaged compared to their more organised competitors. Operational excellence isn’t about efficiency but survival.The data shows enterprise AI investment will continue to grow. Therefore, the question isn’t whether organisations will invest in AI, but whether they’ll develop the operational abilities necessary to realise return on investment. The opportunity to lead in the AI-driven economy has never been greater for those willing to embrace governance as an enabler not an obstacle.(Image source: Unsplash)

One of the four pillars of good conversation is levity. You needn’t be a comedian, you can but have some funTetra Images, LLC/Alamy Conversation lies at the heart of our relationships – yet many of us find it surprisingly hard to talk to others. We may feel anxious at the thought of making small talk with strangers and struggle to connect with the people who are closest to us. If that sounds familiar, Alison Wood Brooks hopes to help. She is a professor at Harvard Business School, where she teaches an oversubscribed course called “TALK: How to talk gooder in business and life”, and the author of a new book, Talk: The science of conversation and the art of being ourselves. Both offer four key principles for more meaningful exchanges. Conversations are inherently unpredictable, says Wood Brooks, but they follow certain rules – and knowing their architecture makes us more comfortable with what is outside of our control. New Scientist asked her about the best ways to apply this research to our own chats. David Robson: Talking about talking feels quite meta. Do you ever find yourself critiquing your own performance? Alison Wood Brooks: There are so many levels of “meta-ness”. I have often felt like I’m floating over the room, watching conversations unfold, even as I’m involved in them myself. I teach a course at Harvard, and [my students] all get to experience this feeling as well. There can be an uncomfortable period of hypervigilance, but I hope that dissipates over time as they develop better habits. There is a famous quote from Charlie Parker, who was a jazz saxophonist. He said something like, “Practise, practise, practise, and then when you get on stage, let it all go and just wail.” I think that’s my approach to conversation. Even when you’re hyper-aware of conversation dynamics, you have to remember the true delight of being with another human mind, and never lose the magic of being together. Think ahead, but once you’re talking, let it all go and just wail. Reading your book, I learned that a good way to enliven a conversation is to ask someone why they are passionate about what they do. So, where does your passion for conversation come from? I have two answers to this question. One is professional. Early in my professorship at Harvard, I had been studying emotions by exploring how people talk about their feelings and the balance between what we feel inside and how we express that to others. And I realised I just had this deep, profound interest in figuring out how people talk to each other about everything, not just their feelings. We now have scientific tools that allow us to capture conversations and analyse them at large scale. Natural language processing, machine learning, the advent of AI – all this allows us to take huge swathes of transcript data and process it much more efficiently. Receive a weekly dose of discovery in your inbox. Sign up to newsletter The personal answer is that I’m an identical twin, and I spent my whole life, from the moment I opened my newborn eyes, existing next to a person who’s an exact copy of myself. It was like observing myself at very close range, interacting with the world, interacting with other people. I could see when she said and did things well, and I could try to do that myself. And I saw when her jokes failed, or she stumbled over her words – I tried to avoid those mistakes. It was a very fortunate form of feedback that not a lot of people get. And then, as a twin, you’ve got this person sharing a bedroom, sharing all your clothes, going to all the same parties and playing on the same sports teams, so we were just constantly in conversation with each other. You reached this level of shared reality that is so incredible, and I’ve spent the rest of my life trying to help other people get there in their relationships, too. “TALK” cleverly captures your framework for better conversations: topics, asking, levity and kindness. Let’s start at the beginning. How should we decide what to talk about? My first piece of advice is to prepare. Some people do this naturally. They already think about the things that they should talk about with somebody before they see them. They should lean into this habit. Some of my students, however, think it’s crazy. They think preparation will make the conversation seem rigid and forced and overly scripted. But just because you’ve thought ahead about what you might talk about doesn’t mean you have to talk about those things once the conversation is underway. It does mean, however, that you always have an idea waiting for you when you’re not sure what to talk about next. Having just one topic in your back pocket can help you in those anxiety-ridden moments. It makes things more fluent, which is important for establishing a connection. Choosing a topic is not only important at the start of a conversation. We’re constantly making decisions about whether we should stay on one subject, drift to something else or totally shift gears and go somewhere wildly different. Sometimes the topic of conversation is obvious. Even then, knowing when to switch to a new one can be trickyMartin Parr/Magnum Photos What’s your advice when making these decisions? There are three very clear signs that suggest that it’s time to switch topics. The first is longer mutual pauses. The second is more uncomfortable laughter, which we use to fill the space that we would usually fill excitedly with good content. And the third sign is redundancy. Once you start repeating things that have already been said on the topic, it’s a sign that you should move to something else. After an average conversation, most people feel like they’ve covered the right number of topics. But if you ask people after conversations that didn’t go well, they’ll more often say that they didn’t talk about enough things, rather than that they talked about too many things. This suggests that a common mistake is lingering too long on a topic after you’ve squeezed all the juice out of it. The second element of TALK is asking questions. I think a lot of us have heard the advice to ask more questions, yet many people don’t apply it. Why do you think that is? Many years of research have shown that the human mind is remarkably egocentric. Often, we are so focused on our own perspective that we forget to even ask someone else to share what’s in their mind. Another reason is fear. You’re interested in the other person, and you know you should ask them questions, but you’re afraid of being too intrusive, or that you will reveal your own incompetence, because you feel you should know the answer already. What kinds of questions should we be asking – and avoiding? In the book, I talk about the power of follow-up questions that build on anything that your partner has just said. It shows that you heard them, that you care and that you want to know more. Even one follow-up question can springboard us away from shallow talk into something deeper and more meaningful. There are, however, some bad patterns of question asking, such as “boomerasking”. Michael Yeomans [at Imperial College London] and I have a recent paper about this, and oh my gosh, it’s been such fun to study. It’s a play on the word boomerang: it comes back to the person who threw it. If I ask you what you had for breakfast, and you tell me you had Special K and banana, and then I say, “Well, let me tell you about my breakfast, because, boy, was it delicious” – that’s boomerasking. Sometimes it’s a thinly veiled way of bragging or complaining, but sometimes I think people are genuinely interested to hear from their partner, but then the partner’s answer reminds them so much of their own life that they can’t help but start sharing their perspective. In our research, we have found that this makes your partner feel like you weren’t interested in their perspective, so it seems very insincere. Sharing your own perspective is important. It’s okay at some point to bring the conversation back to yourself. But don’t do it so soon that it makes your partner feel like you didn’t hear their answer or care about it. Research by Alison Wood Brooks includes a recent study on “boomerasking”, a pitfall you should avoid to make conversations flowJanelle Bruno What are the benefits of levity? When we think of conversations that haven’t gone well, we often think of moments of hostility, anger or disagreement, but a quiet killer of conversation is boredom. Levity is the antidote. These small moments of sparkle or fizz can pull us back in and make us feel engaged with each other again. Our research has shown that we give status and respect to people who make us feel good, so much so that in a group of people, a person who can land even one appropriate joke is more likely to be voted as the leader. And the joke doesn’t even need to be very funny! It’s the fact that they were confident enough to try it and competent enough to read the room. Do you have any practical steps that people can apply to generate levity, even if they’re not a natural comedian? Levity is not just about being funny. In fact, aiming to be a comedian is not the right goal. When we watch stand-up on Netflix, comedians have rehearsed those jokes and honed them and practised them for a long time, and they’re delivering them in a monologue to an audience. It’s a completely different task from a live conversation. In real dialogue, what everybody is looking for is to feel engaged, and that doesn’t require particularly funny jokes or elaborate stories. When you see opportunities to make it fun or lighten the mood, that’s what you need to grab. It can come through a change to a new, fresh topic, or calling back to things that you talked about earlier in the conversation or earlier in your relationship. These callbacks – which sometimes do refer to something funny – are such a nice way of showing that you’ve listened and remembered. A levity move could also involve giving sincere compliments to other people. When you think nice things, when you admire someone, make sure you say it out loud. This brings us to the last element of TALK: kindness. Why do we so often fail to be as kind as we would like? Wobbles in kindness often come back to our egocentrism. Research shows that we underestimate how much other people’s perspectives differ from our own, and we forget that we have the tools to ask other people directly in conversation for their perspective. Being a kinder conversationalist is about trying to focus on your partner’s perspective and then figuring what they need and helping them to get it. Finally, what is your number one tip for readers to have a better conversation the next time they speak to someone? Every conversation is surprisingly tricky and complex. When things don’t go perfectly, give yourself and others more grace. There will be trips and stumbles and then a little grace can go very, very far. Topics:

Navigating the dense urban canyons of cities like San Francisco or New York can be a nightmare for GPS systems. The towering skyscrapers block and reflect satellite signals, leading to location errors of tens of meters. For you and me, that might mean a missed turn. But for an autonomous vehicle or a delivery robot, that level of imprecision is the difference between a successful mission and a costly failure. These machines require pinpoint accuracy to operate safely and efficiently. Addressing this critical challenge, researchers from the École Polytechnique Fédérale de Lausanne (EPFL) in Switzerland have introduced a groundbreaking new method for visual localization during CVPR 2025 Their new paper, “FG2: Fine-Grained Cross-View Localization by Fine-Grained Feature Matching,” presents a novel AI model that significantly enhances the ability of a ground-level system, like an autonomous car, to determine its exact position and orientation using only a camera and a corresponding aerial (or satellite) image. The new approach has demonstrated a remarkable 28% reduction in mean localization error compared to the previous state-of-the-art on a challenging public dataset. Key Takeaways: Superior Accuracy: The FG2 model reduces the average localization error by a significant 28% on the VIGOR cross-area test set, a challenging benchmark for this task. Human-like Intuition: Instead of relying on abstract descriptors, the model mimics human reasoning by matching fine-grained, semantically consistent features—like curbs, crosswalks, and buildings—between a ground-level photo and an aerial map. Enhanced Interpretability: The method allows researchers to “see” what the AI is “thinking” by visualizing exactly which features in the ground and aerial images are being matched, a major step forward from previous “black box” models. Weakly Supervised Learning: Remarkably, the model learns these complex and consistent feature matches without any direct labels for correspondences. It achieves this using only the final camera pose as a supervisory signal. Challenge: Seeing the World from Two Different Angles The core problem of cross-view localization is the dramatic difference in perspective between a street-level camera and an overhead satellite view. A building facade seen from the ground looks completely different from its rooftop signature in an aerial image. Existing methods have struggled with this. Some create a general “descriptor” for the entire scene, but this is an abstract approach that doesn’t mirror how humans naturally localize themselves by spotting specific landmarks. Other methods transform the ground image into a Bird’s-Eye-View (BEV) but are often limited to the ground plane, ignoring crucial vertical structures like buildings. FG2: Matching Fine-Grained Features The EPFL team’s FG2 method introduces a more intuitive and effective process. It aligns two sets of points: one generated from the ground-level image and another sampled from the aerial map. Here’s a breakdown of their innovative pipeline: Mapping to 3D: The process begins by taking the features from the ground-level image and lifting them into a 3D point cloud centered around the camera. This creates a 3D representation of the immediate environment. Smart Pooling to BEV: This is where the magic happens. Instead of simply flattening the 3D data, the model learns to intelligently select the most important features along the vertical (height) dimension for each point. It essentially asks, “For this spot on the map, is the ground-level road marking more important, or is the edge of that building’s roof the better landmark?” This selection process is crucial, as it allows the model to correctly associate features like building facades with their corresponding rooftops in the aerial view. Feature Matching and Pose Estimation: Once both the ground and aerial views are represented as 2D point planes with rich feature descriptors, the model computes the similarity between them. It then samples a sparse set of the most confident matches and uses a classic geometric algorithm called Procrustes alignment to calculate the precise 3-DoF (x, y, and yaw) pose. Unprecedented Performance and Interpretability The results speak for themselves. On the challenging VIGOR dataset, which includes images from different cities in its cross-area test, FG2 reduced the mean localization error by 28% compared to the previous best method. It also demonstrated superior generalization capabilities on the KITTI dataset, a staple in autonomous driving research. Perhaps more importantly, the FG2 model offers a new level of transparency. By visualizing the matched points, the researchers showed that the model learns semantically consistent correspondences without being explicitly told to. For example, the system correctly matches zebra crossings, road markings, and even building facades in the ground view to their corresponding locations on the aerial map. This interpretability is extremenly valuable for building trust in safety-critical autonomous systems. “A Clearer Path” for Autonomous Navigation The FG2 method represents a significant leap forward in fine-grained visual localization. By developing a model that intelligently selects and matches features in a way that mirrors human intuition, the EPFL researchers have not only shattered previous accuracy records but also made the decision-making process of the AI more interpretable. This work paves the way for more robust and reliable navigation systems for autonomous vehicles, drones, and robots, bringing us one step closer to a future where machines can confidently navigate our world, even when GPS fails them. Check out the Paper. All credit for this research goes to the researchers of this project. Also, feel free to follow us on Twitter and don’t forget to join our 100k+ ML SubReddit and Subscribe to our Newsletter. Jean-marc MommessinJean-marc is a successful AI business executive .He leads and accelerates growth for AI powered solutions and started a computer vision company in 2006. He is a recognized speaker at AI conferences and has an MBA from Stanford.Jean-marc Mommessinhttps://www.marktechpost.com/author/jean-marc0000677/AI-Generated Ad Created with Google’s Veo3 Airs During NBA Finals, Slashing Production Costs by 95%Jean-marc Mommessinhttps://www.marktechpost.com/author/jean-marc0000677/Highlighted at CVPR 2025: Google DeepMind’s ‘Motion Prompting’ Paper Unlocks Granular Video ControlJean-marc Mommessinhttps://www.marktechpost.com/author/jean-marc0000677/Snowflake Charts New AI Territory: Cortex AISQL & Snowflake Intelligence Poised to Reshape Data AnalyticsJean-marc Mommessinhttps://www.marktechpost.com/author/jean-marc0000677/Exclusive Talk: Joey Conway of NVIDIA on Llama Nemotron Ultra and Open Source Models

Generative AI has reshaped how people create, imagine and interact with digital content. As AI models continue to grow in capability and complexity, they require more VRAM, or video random access memory. The base Stable Diffusion 3.5 Large model, for example, uses over 18GB of VRAM — limiting the number of systems that can run it well. By applying quantization to the model, noncritical layers can be removed or run with lower precision. NVIDIA GeForce RTX 40 Series and the Ada Lovelace generation of NVIDIA RTX PRO GPUs support FP8 quantization to help run these quantized models, and the latest-generation NVIDIA Blackwell GPUs also add support for FP4. NVIDIA collaborated with Stability AI to quantize its latest model, Stable Diffusion (SD) 3.5 Large, to FP8 — reducing VRAM consumption by 40%. Further optimizations to SD3.5 Large and Medium with the NVIDIA TensorRT software development kit (SDK) double performance. In addition, TensorRT has been reimagined for RTX AI PCs, combining its industry-leading performance with just-in-time (JIT), on-device engine building and an 8x smaller package size for seamless AI deployment to more than 100 million RTX AI PCs. TensorRT for RTX is now available as a standalone SDK for developers. RTX-Accelerated AI NVIDIA and Stability AI are boosting the performance and reducing the VRAM requirements of Stable Diffusion 3.5, one of the world’s most popular AI image models. With NVIDIA TensorRT acceleration and quantization, users can now generate and edit images faster and more efficiently on NVIDIA RTX GPUs. Stable Diffusion 3.5 quantized FP8 (right) generates images in half the time with similar quality as FP16 (left). Prompt: A serene mountain lake at sunrise, crystal clear water reflecting snow-capped peaks, lush pine trees along the shore, soft morning mist, photorealistic, vibrant colors, high resolution. To address the VRAM limitations of SD3.5 Large, the model was quantized with TensorRT to FP8, reducing the VRAM requirement by 40% to 11GB. This means five GeForce RTX 50 Series GPUs can run the model from memory instead of just one. SD3.5 Large and Medium models were also optimized with TensorRT, an AI backend for taking full advantage of Tensor Cores. TensorRT optimizes a model’s weights and graph — the instructions on how to run a model — specifically for RTX GPUs. FP8 TensorRT boosts SD3.5 Large performance by 2.3x vs. BF16 PyTorch, with 40% less memory use. For SD3.5 Medium, BF16 TensorRT delivers a 1.7x speedup. Combined, FP8 TensorRT delivers a 2.3x performance boost on SD3.5 Large compared with running the original models in BF16 PyTorch, while using 40% less memory. And in SD3.5 Medium, BF16 TensorRT provides a 1.7x performance increase compared with BF16 PyTorch. The optimized models are now available on Stability AI’s Hugging Face page. NVIDIA and Stability AI are also collaborating to release SD3.5 as an NVIDIA NIM microservice, making it easier for creators and developers to access and deploy the model for a wide range of applications. The NIM microservice is expected to be released in July. TensorRT for RTX SDK Released Announced at Microsoft Build — and already available as part of the new Windows ML framework in preview — TensorRT for RTX is now available as a standalone SDK for developers. Previously, developers needed to pre-generate and package TensorRT engines for each class of GPU — a process that would yield GPU-specific optimizations but required significant time. With the new version of TensorRT, developers can create a generic TensorRT engine that’s optimized on device in seconds. This JIT compilation approach can be done in the background during installation or when they first use the feature. The easy-to-integrate SDK is now 8x smaller and can be invoked through Windows ML — Microsoft’s new AI inference backend in Windows. Developers can download the new standalone SDK from the NVIDIA Developer page or test it in the Windows ML preview. For more details, read this NVIDIA technical blog and this Microsoft Build recap. Join NVIDIA at GTC Paris At NVIDIA GTC Paris at VivaTech — Europe’s biggest startup and tech event — NVIDIA founder and CEO Jensen Huang yesterday delivered a keynote address on the latest breakthroughs in cloud AI infrastructure, agentic AI and physical AI. Watch a replay. GTC Paris runs through Thursday, June 12, with hands-on demos and sessions led by industry leaders. Whether attending in person or joining online, there’s still plenty to explore at the event. Each week, the RTX AI Garage blog series features community-driven AI innovations and content for those looking to learn more about NVIDIA NIM microservices and AI Blueprints, as well as building AI agents, creative workflows, digital humans, productivity apps and more on AI PCs and workstations.  Plug in to NVIDIA AI PC on Facebook, Instagram, TikTok and X — and stay informed by subscribing to the RTX AI PC newsletter. Follow NVIDIA Workstation on LinkedIn and X.  See notice regarding software product information.

Modern healthcare innovations span AI, devices, software, images, and regulatory frameworks, all requiring stringent coordination. Generative AI arguably has the strongest transformative potential in healthcare technology programmes, with it already being applied across various domains, such as R&D, commercial operations, and supply chain management.Traditional models for medical appointments, like face-to-face appointments, and paper-based processes may not be sufficient to meet the fast-paced, data-driven medical landscape of today. Therefore, healthcare professionals and patients are seeking more convenient and efficient ways to access and share information, meeting the complex standards of modern medical science. According to McKinsey, Medtech companies are at the forefront of healthcare innovation, estimating they could capture between $14 billion and $55 billion annually in productivity gains. Through GenAI adoption, an additional $50 billion plus in revenue is estimated from products and service innovations. A McKinsey 2024 survey revealed around two thirds of Medtech executives have already implemented Gen AI, with approximately 20% scaling their solutions up and reporting substantial benefits to productivity.  While advanced technology implementation is growing across the medical industry, challenges persist. Organisations face hurdles like data integration issues, decentralised strategies, and skill gaps. Together, these highlight a need for a more streamlined approach to Gen AI deployment. Of all the Medtech domains, R&D is leading the way in Gen AI adoption. Being the most comfortable with new technologies, R&D departments use Gen AI tools to streamline work processes, such as summarising research papers or scientific articles, highlighting a grassroots adoption trend. Individual researchers are using AI to enhance productivity, even when no formal company-wide strategies are in place.While AI tools automate and accelerate R&D tasks, human review is still required to ensure final submissions are correct and satisfactory. Gen AI is proving to reduce time spent on administrative tasks for teams and improve research accuracy and depth, with some companies experiencing 20% to 30% gains in research productivity. KPIs for success in healthcare product programmesMeasuring business performance is essential in the healthcare sector. The number one goal is, of course, to deliver high-quality care, yet simultaneously maintain efficient operations. By measuring and analysing KPIs, healthcare providers are in a better position to improve patient outcomes through their data-based considerations. KPIs can also improve resource allocation, and encourage continuous improvement in all areas of care. In terms of healthcare product programmes, these structured initiatives prioritise the development, delivery, and continual optimisation of medical products. But to be a success, they require cross-functional coordination of clinical, technical, regulatory, and business teams. Time to market is critical, ensuring a product moves from the concept stage to launch as quickly as possible.Of particular note is the emphasis needing to be placed on labelling and documentation. McKinsey notes that AI-assisted labelling has resulted in a 20%-30% improvement in operational efficiency. Resource utilisation rates are also important, showing how efficiently time, budget, and/or headcount are used during the developmental stage of products. In the healthcare sector, KPIs ought to focus on several factors, including operational efficiency, patient outcomes, financial health of the business, and patient satisfaction. To achieve a comprehensive view of performance, these can be categorised into financial, operational, clinical quality, and patient experience.Bridging user experience with technical precision – design awardsInnovation is no longer solely judged by technical performance with user experience (UX) being equally important. Some of the latest innovations in healthcare are recognised at the UX Design Awards, products that exemplify the best in user experience as well as technical precision. Top products prioritise the needs and experiences of both patients and healthcare professionals, also ensuring each product meets the rigorous clinical and regulatory standards of the sector. One example is the CIARTIC Move by Siemens Healthineers, a self-driving 3D C-arm imaging system that lets surgeons operate, controlling the device wirelessly in a sterile field. Computer hardware company ASUS has also received accolades for its HealthConnect App and VivoWatch Series, showcasing the fusion of AIoT-driven smart healthcare solutions with user-friendly interfaces – sometimes in what are essentially consumer devices. This demonstrates how technical innovation is being made accessible and becoming increasingly intuitive as patients gain technical fluency.  Navigating regulatory and product development pathways simultaneously The establishing of clinical and regulatory paths is important, as this enables healthcare teams to feed a twin stream of findings back into development. Gen AI adoption has become a transformative approach, automating the production and refining of complex documents, mixed data sets, and structured and unstructured data. By integrating regulatory considerations early and adopting technologies like Gen AI as part of agile practices, healthcare product programmes help teams navigate a regulatory landscape that can often shift. Baking a regulatory mindset into a team early helps ensure compliance and continued innovation. (Image source: “IBM Achieves New Deep Learning Breakthrough” by IBM Research is licensed under CC BY-ND 2.0.)Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.Explore other upcoming enterprise technology events and webinars powered by TechForge here.

The Secure Government Email (SGE) Common Implementation Framework New Zealand’s government is introducing a comprehensive email security framework designed to protect official communications from phishing and domain spoofing. This new framework, which will be mandatory for all government agencies by October 2025, establishes clear technical standards to enhance email security and retire the outdated SEEMail service.  Key Takeaways All NZ government agencies must comply with new email security requirements by October 2025. The new framework strengthens trust and security in government communications by preventing spoofing and phishing. The framework mandates TLS 1.2+, SPF, DKIM, DMARC with p=reject, MTA-STS, and DLP controls. EasyDMARC simplifies compliance with our guided setup, monitoring, and automated reporting. Start a Free Trial What is the Secure Government Email Common Implementation Framework? The Secure Government Email (SGE) Common Implementation Framework is a new government-led initiative in New Zealand designed to standardize email security across all government agencies. Its main goal is to secure external email communication, reduce domain spoofing in phishing attacks, and replace the legacy SEEMail service. Why is New Zealand Implementing New Government Email Security Standards? The framework was developed by New Zealand’s Department of Internal Affairs (DIA) as part of its role in managing ICT Common Capabilities. It leverages modern email security controls via the Domain Name System (DNS) to enable the retirement of the legacy SEEMail service and provide: Encryption for transmission security Digital signing for message integrity Basic non-repudiation (by allowing only authorized senders) Domain spoofing protection These improvements apply to all emails, not just those routed through SEEMail, offering broader protection across agency communications. What Email Security Technologies Are Required by the New NZ SGE Framework? The SGE Framework outlines the following key technologies that agencies must implement: TLS 1.2 or higher with implicit TLS enforced TLS-RPT (TLS Reporting) SPF (Sender Policy Framework) DKIM (DomainKeys Identified Mail) DMARC (Domain-based Message Authentication, Reporting, and Conformance) with reporting MTA-STS (Mail Transfer Agent Strict Transport Security) Data Loss Prevention controls These technologies work together to ensure encrypted email transmission, validate sender identity, prevent unauthorized use of domains, and reduce the risk of sensitive data leaks. Get in touch When Do NZ Government Agencies Need to Comply with this Framework? All New Zealand government agencies are expected to fully implement the Secure Government Email (SGE) Common Implementation Framework by October 2025. Agencies should begin their planning and deployment now to ensure full compliance by the deadline. The All of Government Secure Email Common Implementation Framework v1.0 What are the Mandated Requirements for Domains? Below are the exact requirements for all email-enabled domains under the new framework. ControlExact RequirementTLSMinimum TLS 1.2. TLS 1.1, 1.0, SSL, or clear-text not permitted.TLS-RPTAll email-sending domains must have TLS reporting enabled.SPFMust exist and end with -all.DKIMAll outbound email from every sending service must be DKIM-signed at the final hop.DMARCPolicy of p=reject on all email-enabled domains. adkim=s is recommended when not bulk-sending.MTA-STSEnabled and set to enforce.Implicit TLSMust be configured and enforced for every connection.Data Loss PreventionEnforce in line with the New Zealand Information Security Manual (NZISM) and Protective Security Requirements (PSR). Compliance Monitoring and Reporting The All of Government Service Delivery (AoGSD) team will be monitoring compliance with the framework. Monitoring will initially cover SPF, DMARC, and MTA-STS settings and will be expanded to include DKIM. Changes to these settings will be monitored, enabling reporting on email security compliance across all government agencies. Ongoing monitoring will highlight changes to domains, ensure new domains are set up with security in place, and monitor the implementation of future email security technologies.  Should compliance changes occur, such as an agency’s SPF record being changed from -all to ~all, this will be captured so that the AoGSD Security Team can investigate. They will then communicate directly with the agency to determine if an issue exists or if an error has occurred, reviewing each case individually. Deployment Checklist for NZ Government Compliance Enforce TLS 1.2 minimum, implicit TLS, MTA-STS & TLS-RPT SPF with -all DKIM on all outbound email DMARC p=reject  adkim=s where suitable For non-email/parked domains: SPF -all, empty DKIM, DMARC reject strict Compliance dashboard Inbound DMARC evaluation enforced DLP aligned with NZISM Start a Free Trial How EasyDMARC Can Help Government Agencies Comply EasyDMARC provides a comprehensive email security solution that simplifies the deployment and ongoing management of DNS-based email security protocols like SPF, DKIM, and DMARC with reporting. Our platform offers automated checks, real-time monitoring, and a guided setup to help government organizations quickly reach compliance. 1. TLS-RPT / MTA-STS audit EasyDMARC enables you to enable the Managed MTA-STS and TLS-RPT option with a single click. We provide the required DNS records and continuously monitor them for issues, delivering reports on TLS negotiation problems. This helps agencies ensure secure email transmission and quickly detect delivery or encryption failures. Note: In this screenshot, you can see how to deploy MTA-STS and TLS Reporting by adding just three CNAME records provided by EasyDMARC. It’s recommended to start in “testing” mode, evaluate the TLS-RPT reports, and then gradually switch your MTA-STS policy to “enforce”. The process is simple and takes just a few clicks. As shown above, EasyDMARC parses incoming TLS reports into a centralized dashboard, giving you clear visibility into delivery and encryption issues across all sending sources. 2. SPF with “-all”In the EasyDARC platform, you can run the SPF Record Generator to create a compliant record. Publish your v=spf1 record with “-all” to enforce a hard fail for unauthorized senders and prevent spoofed emails from passing SPF checks. This strengthens your domain’s protection against impersonation. Note: It is highly recommended to start adjusting your SPF record only after you begin receiving DMARC reports and identifying your legitimate email sources. As we’ll explain in more detail below, both SPF and DKIM should be adjusted after you gain visibility through reports. Making changes without proper visibility can lead to false positives, misconfigurations, and potential loss of legitimate emails. That’s why the first step should always be setting DMARC to p=none, receiving reports, analyzing them, and then gradually fixing any SPF or DKIM issues. 3. DKIM on all outbound email DKIM must be configured for all email sources sending emails on behalf of your domain. This is critical, as DKIM plays a bigger role than SPF when it comes to building domain reputation, surviving auto-forwarding, mailing lists, and other edge cases. As mentioned above, DMARC reports provide visibility into your email sources, allowing you to implement DKIM accordingly (see first screenshot). If you’re using third-party services like Google Workspace, Microsoft 365, or Mimecast, you’ll need to retrieve the public DKIM key from your provider’s admin interface (see second screenshot). EasyDMARC maintains a backend directory of over 1,400 email sources. We also give you detailed guidance on how to configure SPF and DKIM correctly for major ESPs.  Note: At the end of this article, you’ll find configuration links for well-known ESPs like Google Workspace, Microsoft 365, Zoho Mail, Amazon SES, and SendGrid – helping you avoid common misconfigurations and get aligned with SGE requirements. If you’re using a dedicated MTA (e.g., Postfix), DKIM must be implemented manually. EasyDMARC’s DKIM Record Generator lets you generate both public and private keys for your server. The private key is stored on your MTA, while the public key must be published in your DNS (see third and fourth screenshots). 4. DMARC p=reject rollout As mentioned in previous points, DMARC reporting is the first and most important step on your DMARC enforcement journey. Always start with a p=none policy and configure RUA reports to be sent to EasyDMARC. Use the report insights to identify and fix SPF and DKIM alignment issues, then gradually move to p=quarantine and finally p=reject once all legitimate email sources have been authenticated.  This phased approach ensures full protection against domain spoofing without risking legitimate email delivery. 5. adkim Strict Alignment Check This strict alignment check is not always applicable, especially if you’re using third-party bulk ESPs, such as Sendgrid, that require you to set DKIM on a subdomain level. You can set adkim=s in your DMARC TXT record, or simply enable strict mode in EasyDMARC’s Managed DMARC settings. This ensures that only emails with a DKIM signature that exactly match your domain pass alignment, adding an extra layer of protection against domain spoofing. But only do this if you are NOT a bulk sender. 6. Securing Non-Email Enabled Domains The purpose of deploying email security to non-email-enabled domains, or parked domains, is to prevent messages being spoofed from that domain. This requirement remains even if the root-level domain has SP=reject set within its DMARC record. Under this new framework, you must bulk import and mark parked domains as “Parked.” Crucially, this requires adjusting SPF settings to an empty record, setting DMARC to p=reject, and ensuring an empty DKIM record is in place: • SPF record: “v=spf1 -all”. • Wildcard DKIM record with empty public key.• DMARC record: “v=DMARC1;p=reject;adkim=s;aspf=s;rua=mailto:…”. EasyDMARC allows you to add and label parked domains for free. This is important because it helps you monitor any activity from these domains and ensure they remain protected with a strict DMARC policy of p=reject. 7. Compliance Dashboard Use EasyDMARC’s Domain Scanner to assess the security posture of each domain with a clear compliance score and risk level. The dashboard highlights configuration gaps and guides remediation steps, helping government agencies stay on track toward full compliance with the SGE Framework. 8. Inbound DMARC Evaluation Enforced You don’t need to apply any changes if you’re using Google Workspace, Microsoft 365, or other major mailbox providers. Most of them already enforce DMARC evaluation on incoming emails. However, some legacy Microsoft 365 setups may still quarantine emails that fail DMARC checks, even when the sending domain has a p=reject policy, instead of rejecting them. This behavior can be adjusted directly from your Microsoft Defender portal. Read more about this in our step-by-step guide on how to set up SPF, DKIM, and DMARC from Microsoft Defender. If you’re using a third-party mail provider that doesn’t enforce having a DMARC policy for incoming emails, which is rare, you’ll need to contact their support to request a configuration change. 9. Data Loss Prevention Aligned with NZISM The New Zealand Information Security Manual (NZISM) is the New Zealand Government’s manual on information assurance and information systems security. It includes guidance on data loss prevention (DLP), which must be followed to be aligned with the SEG. Need Help Setting up SPF and DKIM for your Email Provider? Setting up SPF and DKIM for different ESPs often requires specific configurations. Some providers require you to publish SPF and DKIM on a subdomain, while others only require DKIM, or have different formatting rules. We’ve simplified all these steps to help you avoid misconfigurations that could delay your DMARC enforcement, or worse, block legitimate emails from reaching your recipients. Below you’ll find comprehensive setup guides for Google Workspace, Microsoft 365, Zoho Mail, Amazon SES, and SendGrid. You can also explore our full blog section that covers setup instructions for many other well-known ESPs. Remember, all this information is reflected in your DMARC aggregate reports. These reports give you live visibility into your outgoing email ecosystem, helping you analyze and fix any issues specific to a given provider. Here are our step-by-step guides for the most common platforms: Google Workspace Microsoft 365 These guides will help ensure your DNS records are configured correctly as part of the Secure Government Email (SGE) Framework rollout. Meet New Government Email Security Standards With EasyDMARC New Zealand’s SEG Framework sets a clear path for government agencies to enhance their email security by October 2025. With EasyDMARC, you can meet these technical requirements efficiently and with confidence. From protocol setup to continuous monitoring and compliance tracking, EasyDMARC streamlines the entire process, ensuring strong protection against spoofing, phishing, and data loss while simplifying your transition from SEEMail.

Sovereignty has mattered since the invention of the nation state—defined by borders, laws, and taxes that apply within and without. While many have tried to define it, the core idea remains: nations or jurisdictions seek to stay in control, usually to the benefit of those within their borders. Digital sovereignty is a relatively new concept, also difficult to define but straightforward to understand. Data and applications don’t understand borders unless they are specified in policy terms, as coded into the infrastructure. The World Wide Web had no such restrictions at its inception. Communitarian groups such as the Electronic Frontier Foundation, service providers and hyperscalers, non-profits and businesses all embraced a model that suggested data would look after itself. But data won’t look after itself, for several reasons. First, data is massively out of control. We generate more of it all the time, and for at least two or three decades (according to historical surveys I’ve run), most organizations haven’t fully understood their data assets. This creates inefficiency and risk—not least, widespread vulnerability to cyberattack. Risk is probability times impact—and right now, the probabilities have shot up. Invasions, tariffs, political tensions, and more have brought new urgency. This time last year, the idea of switching off another country’s IT systems was not on the radar. Now we’re seeing it happen—including the U.S. government blocking access to services overseas. Digital sovereignty isn’t just a European concern, though it is often framed as such. In South America for example, I am told that sovereignty is leading conversations with hyperscalers; in African countries, it is being stipulated in supplier agreements. Many jurisdictions are watching, assessing, and reviewing their stance on digital sovereignty. As the adage goes: a crisis is a problem with no time left to solve it. Digital sovereignty was a problem in waiting—but now it’s urgent. It’s gone from being an abstract ‘right to sovereignty’ to becoming a clear and present issue, in government thinking, corporate risk and how we architect and operate our computer systems. What does the digital sovereignty landscape look like today? Much has changed since this time last year. Unknowns remain, but much of what was unclear this time last year is now starting to solidify. Terminology is clearer – for example talking about classification and localisation rather than generic concepts. We’re seeing a shift from theory to practice. Governments and organizations are putting policies in place that simply didn’t exist before. For example, some countries are seeing “in-country” as a primary goal, whereas others (the UK included) are adopting a risk-based approach based on trusted locales. We’re also seeing a shift in risk priorities. From a risk standpoint, the classic triad of confidentiality, integrity, and availability are at the heart of the digital sovereignty conversation. Historically, the focus has been much more on confidentiality, driven by concerns about the US Cloud Act: essentially, can foreign governments see my data? This year however, availability is rising in prominence, due to geopolitics and very real concerns about data accessibility in third countries. Integrity is being talked about less from a sovereignty perspective, but is no less important as a cybercrime target—ransomware and fraud being two clear and present risks. Thinking more broadly, digital sovereignty is not just about data, or even intellectual property, but also the brain drain. Countries don’t want all their brightest young technologists leaving university only to end up in California or some other, more attractive country. They want to keep talent at home and innovate locally, to the benefit of their own GDP. How Are Cloud Providers Responding? Hyperscalers are playing catch-up, still looking for ways to satisfy the letter of the law whilst ignoring (in the French sense) its spirit. It’s not enough for Microsoft or AWS to say they will do everything they can to protect a jurisdiction’s data, if they are already legally obliged to do the opposite. Legislation, in this case US legislation, calls the shots—and we all know just how fragile this is right now. We see hyperscaler progress where they offer technology to be locally managed by a third party, rather than themselves. For example, Google’s partnership with Thales, or Microsoft with Orange, both in France (Microsoft has similar in Germany). However, these are point solutions, not part of a general standard. Meanwhile, AWS’ recent announcement about creating a local entity doesn’t solve for the problem of US over-reach, which remains a core issue. Non-hyperscaler providers and software vendors have an increasingly significant play: Oracle and HPE offer solutions that can be deployed and managed locally for example; Broadcom/VMware and Red Hat provide technologies that locally situated, private cloud providers can host. Digital sovereignty is thus a catalyst for a redistribution of “cloud spend” across a broader pool of players. What Can Enterprise Organizations Do About It? First, see digital sovereignty as a core element of data and application strategy. For a nation, sovereignty means having solid borders, control over IP, GDP, and so on. That’s the goal for corporations as well—control, self-determination, and resilience. If sovereignty isn’t seen as an element of strategy, it gets pushed down into the implementation layer, leading to inefficient architectures and duplicated effort. Far better to decide up front what data, applications and processes need to be treated as sovereign, and defining an architecture to support that. This sets the scene for making informed provisioning decisions. Your organization may have made some big bets on key vendors or hyperscalers, but multi-platform thinking increasingly dominates: multiple public and private cloud providers, with integrated operations and management. Sovereign cloud becomes one element of a well-structured multi-platform architecture. It is not cost-neutral to deliver on sovereignty, but the overall business value should be tangible. A sovereignty initiative should bring clear advantages, not just for itself, but through the benefits that come with better control, visibility, and efficiency. Knowing where your data is, understanding which data matters, managing it efficiently so you’re not duplicating or fragmenting it across systems—these are valuable outcomes. In addition, ignoring these questions can lead to non-compliance or be outright illegal. Even if we don’t use terms like ‘sovereignty’, organizations need a handle on their information estate. Organizations shouldn’t be thinking everything cloud-based needs to be sovereign, but should be building strategies and policies based on data classification, prioritization and risk. Build that picture and you can solve for the highest-priority items first—the data with the strongest classification and greatest risk. That process alone takes care of 80–90% of the problem space, avoiding making sovereignty another problem whilst solving nothing. Where to start? Look after your own organization first Sovereignty and systems thinking go hand in hand: it’s all about scope. In enterprise architecture or business design, the biggest mistake is boiling the ocean—trying to solve everything at once. Instead, focus on your own sovereignty. Worry about your own organization, your own jurisdiction. Know where your own borders are. Understand who your customers are, and what their requirements are. For example, if you’re a manufacturer selling into specific countries—what do those countries require? Solve for that, not for everything else. Don’t try to plan for every possible future scenario. Focus on what you have, what you’re responsible for, and what you need to address right now. Classify and prioritise your data assets based on real-world risk. Do that, and you’re already more than halfway toward solving digital sovereignty—with all the efficiency, control, and compliance benefits that come with it. Digital sovereignty isn’t just regulatory, but strategic. Organizations that act now can reduce risk, improve operational clarity, and prepare for a future based on trust, compliance, and resilience. The post Reclaiming Control: Digital Sovereignty in 2025 appeared first on Gigaom.

Join the event trusted by enterprise leaders for nearly two decades. VB Transform brings together the people building real enterprise AI strategy. Learn more When DeepSeek released its R1 model this January, it wasn’t just another AI announcement. It was a watershed moment that sent shockwaves through the tech industry, forcing industry leaders to reconsider their fundamental approaches to AI development. What makes DeepSeek’s accomplishment remarkable isn’t that the company developed novel capabilities; rather, it was how it achieved comparable results to those delivered by tech heavyweights at a fraction of the cost. In reality, DeepSeek didn’t do anything that hadn’t been done before; its innovation stemmed from pursuing different priorities. As a result, we are now experiencing rapid-fire development along two parallel tracks: efficiency and compute.  As DeepSeek prepares to release its R2 model, and as it concurrently faces the potential of even greater chip restrictions from the U.S., it’s important to look at how it captured so much attention. Engineering around constraints DeepSeek’s arrival, as sudden and dramatic as it was, captivated us all because it showcased the capacity for innovation to thrive even under significant constraints. Faced with U.S. export controls limiting access to cutting-edge AI chips, DeepSeek was forced to find alternative pathways to AI advancement. While U.S. companies pursued performance gains through more powerful hardware, bigger models and better data, DeepSeek focused on optimizing what was available. It implemented known ideas with remarkable execution — and there is novelty in executing what’s known and doing it well. This efficiency-first mindset yielded incredibly impressive results. DeepSeek’s R1 model reportedly matches OpenAI’s capabilities at just 5 to 10% of the operating cost. According to reports, the final training run for DeepSeek’s V3 predecessor cost a mere $6 million — which was described by former Tesla AI scientist Andrej Karpathy as “a joke of a budget” compared to the tens or hundreds of millions spent by U.S. competitors. More strikingly, while OpenAI reportedly spent $500 million training its recent “Orion” model, DeepSeek achieved superior benchmark results for just $5.6 million — less than 1.2% of OpenAI’s investment. If you get starry eyed believing these incredible results were achieved even as DeepSeek was at a severe disadvantage based on its inability to access advanced AI chips, I hate to tell you, but that narrative isn’t entirely accurate (even though it makes a good story). Initial U.S. export controls focused primarily on compute capabilities, not on memory and networking — two crucial components for AI development. That means that the chips DeepSeek had access to were not poor quality chips; their networking and memory capabilities allowed DeepSeek to parallelize operations across many units, a key strategy for running their large model efficiently. This, combined with China’s national push toward controlling the entire vertical stack of AI infrastructure, resulted in accelerated innovation that many Western observers didn’t anticipate. DeepSeek’s advancements were an inevitable part of AI development, but they brought known advancements forward a few years earlier than would have been possible otherwise, and that’s pretty amazing. Pragmatism over process Beyond hardware optimization, DeepSeek’s approach to training data represents another departure from conventional Western practices. Rather than relying solely on web-scraped content, DeepSeek reportedly leveraged significant amounts of synthetic data and outputs from other proprietary models. This is a classic example of model distillation, or the ability to learn from really powerful models. Such an approach, however, raises questions about data privacy and governance that might concern Western enterprise customers. Still, it underscores DeepSeek’s overall pragmatic focus on results over process. The effective use of synthetic data is a key differentiator. Synthetic data can be very effective when it comes to training large models, but you have to be careful; some model architectures handle synthetic data better than others. For instance, transformer-based models with mixture of experts (MoE) architectures like DeepSeek’s tend to be more robust when incorporating synthetic data, while more traditional dense architectures like those used in early Llama models can experience performance degradation or even “model collapse” when trained on too much synthetic content. This architectural sensitivity matters because synthetic data introduces different patterns and distributions compared to real-world data. When a model architecture doesn’t handle synthetic data well, it may learn shortcuts or biases present in the synthetic data generation process rather than generalizable knowledge. This can lead to reduced performance on real-world tasks, increased hallucinations or brittleness when facing novel situations.  Still, DeepSeek’s engineering teams reportedly designed their model architecture specifically with synthetic data integration in mind from the earliest planning stages. This allowed the company to leverage the cost benefits of synthetic data without sacrificing performance. Market reverberations Why does all of this matter? Stock market aside, DeepSeek’s emergence has triggered substantive strategic shifts among industry leaders. Case in point: OpenAI. Sam Altman recently announced plans to release the company’s first “open-weight” language model since 2019. This is a pretty notable pivot for a company that built its business on proprietary systems. It seems DeepSeek’s rise, on top of Llama’s success, has hit OpenAI’s leader hard. Just a month after DeepSeek arrived on the scene, Altman admitted that OpenAI had been “on the wrong side of history” regarding open-source AI.  With OpenAI reportedly spending $7 to 8 billion annually on operations, the economic pressure from efficient alternatives like DeepSeek has become impossible to ignore. As AI scholar Kai-Fu Lee bluntly put it: “You’re spending $7 billion or $8 billion a year, making a massive loss, and here you have a competitor coming in with an open-source model that’s for free.” This necessitates change. This economic reality prompted OpenAI to pursue a massive $40 billion funding round that valued the company at an unprecedented $300 billion. But even with a war chest of funds at its disposal, the fundamental challenge remains: OpenAI’s approach is dramatically more resource-intensive than DeepSeek’s. Beyond model training Another significant trend accelerated by DeepSeek is the shift toward “test-time compute” (TTC). As major AI labs have now trained their models on much of the available public data on the internet, data scarcity is slowing further improvements in pre-training. To get around this, DeepSeek announced a collaboration with Tsinghua University to enable “self-principled critique tuning” (SPCT). This approach trains AI to develop its own rules for judging content and then uses those rules to provide detailed critiques. The system includes a built-in “judge” that evaluates the AI’s answers in real-time, comparing responses against core rules and quality standards. The development is part of a movement towards autonomous self-evaluation and improvement in AI systems in which models use inference time to improve results, rather than simply making models larger during training. DeepSeek calls its system “DeepSeek-GRM” (generalist reward modeling). But, as with its model distillation approach, this could be considered a mix of promise and risk. For example, if the AI develops its own judging criteria, there’s a risk those principles diverge from human values, ethics or context. The rules could end up being overly rigid or biased, optimizing for style over substance, and/or reinforce incorrect assumptions or hallucinations. Additionally, without a human in the loop, issues could arise if the “judge” is flawed or misaligned. It’s a kind of AI talking to itself, without robust external grounding. On top of this, users and developers may not understand why the AI reached a certain conclusion — which feeds into a bigger concern: Should an AI be allowed to decide what is “good” or “correct” based solely on its own logic? These risks shouldn’t be discounted. At the same time, this approach is gaining traction, as again DeepSeek builds on the body of work of others (think OpenAI’s “critique and revise” methods, Anthropic’s constitutional AI or research on self-rewarding agents) to create what is likely the first full-stack application of SPCT in a commercial effort. This could mark a powerful shift in AI autonomy, but there still is a need for rigorous auditing, transparency and safeguards. It’s not just about models getting smarter, but that they remain aligned, interpretable, and trustworthy as they begin critiquing themselves without human guardrails. Moving into the future So, taking all of this into account, the rise of DeepSeek signals a broader shift in the AI industry toward parallel innovation tracks. While companies continue building more powerful compute clusters for next-generation capabilities, there will also be intense focus on finding efficiency gains through software engineering and model architecture improvements to offset the challenges of AI energy consumption, which far outpaces power generation capacity.  Companies are taking note. Microsoft, for example, has halted data center development in multiple regions globally, recalibrating toward a more distributed, efficient infrastructure approach. While still planning to invest approximately $80 billion in AI infrastructure this fiscal year, the company is reallocating resources in response to the efficiency gains DeepSeek introduced to the market. Meta has also responded, With so much movement in such a short time, it becomes somewhat ironic that the U.S. sanctions designed to maintain American AI dominance may have instead accelerated the very innovation they sought to contain. By constraining access to materials, DeepSeek was forced to blaze a new trail. Moving forward, as the industry continues to evolve globally, adaptability for all players will be key. Policies, people and market reactions will continue to shift the ground rules — whether it’s eliminating the AI diffusion rule, a new ban on technology purchases or something else entirely. It’s what we learn from one another and how we respond that will be worth watching. Jae Lee is CEO and co-founder of TwelveLabs. Daily insights on business use cases with VB Daily If you want to impress your boss, VB Daily has you covered. We give you the inside scoop on what companies are doing with generative AI, from regulatory shifts to practical deployments, so you can share insights for maximum ROI. Read our Privacy Policy Thanks for subscribing. Check out more VB newsletters here. An error occured.