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May 26
Let there be limits—Pope Leo invokes scripture on AI's moral peril, Anthropic in tow
Pope Leo XIV released a major document on May 25, warning about the dangers of AI, from autonomous weapons to what he claims is its relation to "new forms of slavery" arising from the industry. An unexpected attendee of the pope's Vatican event announcing the document's release was Anthropic co-founder Chris Olah, a presence that signals the AI developer's relationship with the Catholic Church as it seeks to bolster its image as an AI company concerned with ethics.
OpenAI is widening its ChatGPT advertising business beyond large brands, adding tools aimed at smaller marketers as it seeks to turn one of the world's most widely used AI products into a more measurable ad platform.
Taiwanese machinery component maker Hiwin has officially opened its new headquarters in Agrate Brianza for its Italian subsidiary, saying the site will serve as a key hub connecting Europe with global markets and strengthening its international service network. Chairman Eddie Chuo said that Hiwin Italy is not only an operating base, but also a critical bridge for broader regional integration.
Dropbox has announced a leadership transition: co-founder and CEO Andrew Houston will step down after 19 years. According to Reuters, Houston will share the responsibilities with internal executive Ashraf Alkarmi under a temporary co-CEO structure effective immediately, before transitioning into the role of Executive Chairman. Following this interim dual-leadership period, Alkarmi will assume sole control as chief executive.
On May 26, Xiaomi Corporation reported first-quarter 2026 revenue of CNY99.1 billion (approx. US$14.6 billion) as it confronts a "super cycle" of rising memory costs. Management characterized the surge as a "new normal," opting to manage the impact through "product matrix upgrades" and operational efficiency rather than passing costs directly to consumers.
SmartSens and Unisoc have formed a strategic partnership to develop Micro LED high-speed optical interconnects, aiming to deliver domestic, low-power, high-bandwidth solutions for short-reach AI cluster links. The collaboration could accelerate the commercialization of Micro LED co-packaged optics (CPO) technology and strengthen China's role in global AI infrastructure supply chains, according to a press release.
Accelerating the adoption of smart manufacturing, AI-driven automation, and humanoid robot applications in 2026 is driving robust growth across Taiwan's robotics supply chain. Systems integrators and key transmission-component suppliers posted strong first-quarter 2026 results, with many reporting double-digit increases in both revenue and profit amid expanding demand from traditional industrial automation and emerging AI robotics applications.
Microsoft overhauled its long-standing senior leadership structure as Chief Executive reorganized the company to accelerate AI development and cut decision-making time, executives said. The firm replaced its Senior Leadership Team with a new corporate governance group that includes the CEO, the president, the chief financial officer, the chief human resources officer and the business chief, and said the group will meet at least once a week.
Luxshare Precision Industry said at its annual shareholders meeting on May 22 that it expects AI infrastructure to expand strongly over the next three to five years. Still, it warned that energy constraints and immature industry standards will pose significant hurdles. The Chinese electronics manufacturer compared the AI opportunity to the 2017 consumer electronics market and said it is accelerating AI infrastructure efforts through its communications business.
A former Tencent large-model technical chief warned that Chinese artificial intelligence companies lack independent paradigm-level breakthroughs and are trailing US rivals, according to an interview with the South China Morning Post. He said the gap in large language model technology was about three months and could widen to six months by year-end as OpenAI prepares to launch GPT 5.6, and that US chip export controls had reduced China's available computing power for training advanced models.
Tight upstream copper concentrate supply has kept prices high despite rising exchange inventories, squeezing margins for electronics companies and prompting suppliers to pass costs on and cut low-margin output — developments that could push component prices higher worldwide as AI-driven demand accelerates consumption and firms stockpile materials across the manufacturing and infrastructure sectors.
China Electric Manufacturing Corporation said at its May 26 shareholders meeting that first-quarter 2026 revenue was flat while gross margin rose to 38%, and it planned a phased digital transformation in the second half of 2026 to drive significant net profit growth versus 2025. The firm announced it would deploy cloud computing, Internet of Things, and artificial intelligence technologies, integrated with its existing enterprise resource planning system, to improve operational efficiency and attract new customers.