Last Week in AI - Week 13

Author

Axel Flerén
March 31, 2025

Hey there,

This is a letter about the last week in AI.

Featuring News, updates & Insights in AI for Week 13, 2025.

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Updates & News - Week 13, 2025

Europe invests 1.3bn euros in AI and Cybersecurity

Context

The European Commission are going to allocate a 1.3 billion euro investment into AI and cybersecurity projects over the coming three years. It’s part of a broader push to stay competitive in a world racing ahead with tech innovation.

Key Information

  • The funding is part of the “Digital Europe Programme.”

  • Nearly 500 million euros will go into AI-related efforts.

  • The rest is split between cybersecurity, digital skills, and cloud/data infrastructure.

  • The goal is to boost adoption of trustworthy AI across sectors.

  • Projects are open to public and private organizations in eligible EU countries.

What to Take Away from This

Europe has often lagged behind the US and China in AI, but this is a signal that it's not content being a spectator anymore. The investment isn’t just about research; it’s about putting real money into building AI infrastructure, educating a new generation of workers, and securing it all with serious cybersecurity.

For startups and institutions inside the EU, this could be the spark that ignites a much faster pace of AI deployment.

Google Meet AI Update

Context

Google Meet just rolled out a new AI-powered layout system that dynamically adjusts how faces are shown on screen.

Key Information

  • The new layout is driven by AI to highlight key participants.

  • It automatically resizes and repositions tiles based on activity.

  • Side-by-side mode for presentations is now smarter and less cluttered.

  • No manual setup required, everything happens in the background.

  • Designed to work seamlessly across devices.

What to Take Away from This

Video calls are slowly getting smarter.

With this update, Google’s trying to make Meet feel less like a surveillance grid and more like a natural conversation.

It's subtle, but important.

When the layout reacts to who’s talking, presenting, or reacting, meetings feel smoother like a real room, not a spreadsheet of faces.

Microsoft Quietly Pulls Back on Data Centers

Context

Microsoft has been aggressively expanding its AI infrastructure, spending billions on new data centers to keep up with the compute race. But now, it's hitting pause. Analysts say the company is pulling back on some of its leasing plans in the US and Europe.

Key Information

  • Microsoft recently canceled or downsized multiple data center lease deals in key markets, including Virginia and parts of Europe.

  • The change comes amid slower-than-expected cloud growth and investor pressure to balance massive AI spending with profitability.

  • Despite the pullbacks, Microsoft still plans to spend over $50 billion on infrastructure in 2025 but with more focus on efficiency.

  • Some partners say the company is shifting toward owning more of its infrastructure instead of relying on long-term leases.

What to Take Away from This

Microsoft’s prior approach to AI infrastructure was basically “spend now, think later.”

But the tone is changing.

As cloud growth cools and margins come into focus, even the biggest AI players are rethinking their buildout strategy.

Microsoft is still going big, just with more control and a bit more caution.

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That was everything for Week 13, hoping that you found it valuable!

If you want more updates in AI then make sure to follow me on my socials 👇

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Back soon,

Axel