July 24, 2025

analysis  
Google Gemini, Microsoft AI Fuel Fusion Energy Investments

Several significant shifts and applications in the AI landscape are emerging. McKinsey is limiting its China-based consulting on generative AI projects due to increasing U.S. government scrutiny, reflecting broader geopolitical tensions affecting AI investments. This is prompting a shift towards new AI hubs in regions like the UAE, Saudi Arabia, India, and the EU, with the UAE investing $10 billion in AI and Saudi Arabia allocating $138 billion for AI infrastructure. Meanwhile, companies are finding innovative uses for AI across various sectors. Amtrak is using AI from Exodigo to improve infrastructure projects by mapping underground areas, while in the Middle East, M42 in Abu Dhabi is leveraging AI to enhance healthcare through gene sequencing and predictive analysis. However, AI also presents new challenges, such as security threats to casinos, as highlighted by expert Douglas Florence. To address the increasing energy demands of AI, Google is investing in fusion energy and collaborating with NREL to optimize data center energy usage, utilizing tools like Gemini. Furthermore, AI chatbots like ChatGPT, Claude, and Gemini heavily rely on news and public content for their knowledge base. Efforts are also underway to make AI more inclusive, as demonstrated by a Brooklyn exhibit focused on incorporating Black culture into AI models. Other companies like Microsoft are also investing in fusion energy.

Key Takeaways

  • McKinsey is restricting its China business from working on generative AI projects due to U.S. government concerns.
  • Geopolitical tensions are causing AI investment to shift from China to new hubs like the UAE and Saudi Arabia.
  • The UAE is investing $10 billion in AI, while Saudi Arabia has allocated $138 billion for AI infrastructure.
  • Amtrak is using AI from Exodigo to map underground areas for infrastructure projects.
  • M42 in Abu Dhabi is using AI to improve healthcare through gene sequencing and predictive analysis.
  • AI poses new security threats to casinos, including cheating through hidden cameras and marked cards.
  • Google is investing in fusion energy to power its AI data centers and collaborating with NREL to optimize data center energy usage using Gemini.
  • AI chatbots like ChatGPT, Claude, and Gemini rely heavily on news and public content.
  • A Brooklyn exhibit is working to make AI more inclusive by incorporating Black culture into AI models.
  • Microsoft is also investing in fusion energy to meet the increasing demand for power.

McKinsey limits China AI work amid US scrutiny

McKinsey has told its China business to avoid projects using generative AI, according to the Financial Times. This decision follows increasing US government oversight of American companies working with sensitive technologies like AI and quantum computing in China. The ban includes projects for multinational clients but allows McKinsey China to work with companies using more established AI. McKinsey has over 1000 employees in China and says it follows strict client selection policies.

McKinsey limits China AI work amid US scrutiny

McKinsey has told its mainland China business to avoid projects using generative artificial intelligence, according to the Financial Times. This decision follows increasing US government oversight of American companies working with sensitive technologies like AI and quantum computing in China. The ban includes projects for multinational clients but allows McKinsey's China business to work with companies using more established AI. McKinsey has over 1000 employees in China and says it follows strict client selection policies.

McKinsey restricts generative AI consulting in China

McKinsey is stopping its China teams from consulting on generative AI projects because of pressure from Washington. US officials are watching American companies that advise on important technology in China, especially AI and quantum computing. McKinsey's new rule stops its China business from working on generative AI projects for both local and international companies, but other AI consulting is still allowed. China is making AI a key part of its future growth, so this move could reduce McKinsey's role in this growing area.

AI hubs rise beyond China and the US

Due to rising tensions between the U.S. and China, technology firms are changing their strategies. The U.S. investment ban on AI, semiconductors, and quantum computing has caused companies to move away from China. This shift creates opportunities for investors in new AI centers in the UAE, Saudi Arabia, India, and the EU. These regions offer government support and less strict rules. The UAE is investing $10 billion in AI, while Saudi Arabia has allocated $138 billion for AI infrastructure.

AI investment shifts from China amid global changes

The global AI field is changing because of geopolitical issues and shifting investments. As China's tech goals clash with Western caution, companies are rethinking their investments in China. McKinsey's recent decision to limit its AI work in China shows the fragile nature of tech in a world with increasing competition. Investors need to spread out their risk and look at other innovation centers in places like ASEAN, India, and Brazil, where AI is growing quickly.

Amtrak uses AI to improve infrastructure projects

Amtrak is working with Exodigo, a company that uses artificial intelligence to map underground areas. Exodigo uses AI, 3D imaging, historical records, and satellite images to create maps without digging. This helps cities and companies plan new construction projects. Amtrak used Exodigo's snapshot in 2024 for plans to replace bridges in Maryland. Exodigo is expanding and has projects in New York, Los Angeles, Florida, and Kansas.

AI poses new security threats to casinos

Casino security expert Douglas Florence warns that AI can be used to cheat in casinos. He explains that AI can quickly understand game rules and use hidden cameras to see marked cards. Marked cards are like barcodes that change on the side, allowing cheaters to know the cards. AI can also make decision strategies more effective in electronic table games. Florence recalls a past computer crime in Vegas where a team hacked slot machines to win millions.

AI is changing healthcare in the Middle East

Abu Dhabi-based company M42 is using AI to improve healthcare. They have sequenced the genes of most of the local population, allowing them to detect and treat diseases early. Apps help patients manage their care and connect with doctors. M42 uses AI to predict health conditions, improve medical results, and reduce hospital costs. The company is expanding globally and aims to make healthcare more effective and affordable.

Google and NREL use AI to solve data center energy issues

NREL and Google hosted a hackathon where researchers explored using Google's AI tools to solve energy problems for U.S. data centers. These challenges are important for future technology growth and affordable energy. About 50 experts from national labs participated in the event in Washington, D.C. They used AI tools like Gemini to address real-world problems in areas like geospatial analytics and data center optimization. The hackathon showed how AI can speed up research and create new ideas.

AI chatbots rely on news and public content

AI chatbots like ChatGPT, Claude, and Gemini mainly use news stories and content from external sources like journalists and the public. Muck Rack analyzed over 1 million user prompts and found that 96% of links cited by AI are related to communications and corporate affairs. External blogs and news stories are cited most often, while paid marketing is rarely used. Fact-based queries are more likely to cite news outlets like Reuters, Financial Times, Time, Axios, Forbes, and Associated Press.

Brooklyn exhibit makes AI more inclusive

An AI laboratory in Brooklyn is challenging the white-dominated AI world by focusing on Black culture. Artist Stephanie Dinkins created the exhibit to teach AI models about the history and dreams of Black and brown people. She wants to shift the AI landscape, which is often trained on biased data. The exhibit displays AI-generated images that show the diversity of the city. Visitors can submit their own stories to help the AI learn and create more inclusive images.

Google invests in fusion energy for AI data centers

The demand for AI data centers is growing, leading to a surge in electrical power consumption. Google is investing in nuclear fusion energy to power its AI data centers. Google will buy 200 megawatts of power from Commonwealth Fusion Systems, with plans to deliver power in the early 2030s. This is part of Google's strategy to develop multiple energy sources to meet the increasing demand for power. Other companies like Microsoft are also investing in fusion energy.

Sources

AI Generative AI China United States McKinsey Government Oversight Technology Quantum Computing Investment Data Centers Energy Google NREL Hackathon AI Chatbots ChatGPT Claude Gemini News Public Content Inclusivity Bias Black Culture Healthcare Middle East M42 Security Casinos Infrastructure Amtrak Exodigo Fusion Energy Geopolitics UAE Saudi Arabia India EU