OpenAI will open its first Applied AI Lab outside the US in Singapore. The lab is part of a new partnership with the Ministry of Digital Development and Information.

The initiative, called OpenAI for Singapore, was announced at the ATx Summit and is backed by a commitment of more than S$300 million.

The lab will create more than 200 Singapore-based technical roles over the next few years. OpenAI said Singapore will also become one of its global hubs for forward-deployed engineers who will work with organisations on AI deployment. OpenAI said the lab’s work will be aligned with Singapore’s AI Mission priorities which include public service, finance, and digital infrastructure.

Focus on deployment and talent

The company will work with government agencies and local partners on education and workforce programmes within the Ministry of Education and GovTech. OpenAI also plans to support educators through a Singapore chapter of the OpenAI Academy, participate in the National AI Impact Programme, and run Codex for Teachers hackathons.

The partnership includes plans to work with local partners on accelerator programmes for AI-native startups in the form of workshops for micro-entrepreneurs and small businesses, covering how founders and SMEs can use AI in operations and customer service.

Chng Kai Fong, Permanent Secretary for Digital Development and Information, said Singapore’s response to AI includes growing new sectors, anchoring global frontier companies, and equipping workers with relevant skills.

Singapore updates agentic AI framework

Singapore has also updated its governance framework for agentic AI, which was launched by the Infocomm Media Development Authority at the World Economic Forum in January 2026. The framework builds on Singapore’s earlier Model AI Governance Framework for AI, introduced in 2020, and gives organisations guidance on the responsible deployment of AI agents, including measures to reduce the risks inherent in agentic AI.

IMDA has now updated the framework after seeking feedback and case studies from the industry, with the revised version following input from more than 60 organisations, including AWS, DBS, Google, and Salesforce.

The update adds guidance on risks linked to multi-agent systems, third-party agents, automation bias, and human accountability. The framework now includes more than ten case studies showing how organisations have applied its recommendations.

The case studies were contributed by Singaporean and international organisations, including Ant International, City Developments Limited, Cyber Sierra, Dayos, Google, Knovel, OCBC, PwC, Stability Solutions, Tencent, Terminal 3, Workday, X0PA, and GovTech Singapore.

Case studies show governance controls

One case study focuses on Dayos, a Singapore-headquartered enterprise AI automation company with operations in the US. Dayos built an AI-powered ticketing agent that handles internal IT requests. The agent can resolve some requests automatically and route requests to a human when needed.

Dayos used tiered risk levels to determine what actions the agent could take. Low-risk and reversible actions, like password resets, could be automated and audited biweekly, while moderate-risk actions required human approval before execution. Higher-risk actions, like permission changes with limited reversibility, were excluded from the agent’s authority.

Tencent contributed a case study on CodeBuddy, an agentic AI coding system developed by Tencent Cloud. CodeBuddy can plan, write, and deploy code through natural language instructions and can access filesystems, terminal commands, external APIs, and MCP tools.

CodeBuddy uses preset defaults and configurable permissions. Human approval is required for actions like editing files, running shell commands, making network requests, or using external tools.

The system explains complex commands in plain language before users approve them. Suspicious commands still require human approval, even if similar commands had been pre-approved.

GovTech Singapore’s case study covers the rollout of agentic coding assistants in government. The first phase was limited to GovTech employees, did not allow external tools, and was restricted to low-risk systems. GovTech developed central logging and a framework for connecting approved external tools. The agency also tested the system against potential attacks.

(Photo by Mike Enerio)

See also: GPT-5.5 is OpenAI’s most capable agentic AI model yet

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President Trump flew to Beijing, brought Jensen Huang along at the last minute, and left two days later, telling reporters that “something could happen” on chip exports. Nothing did. Not a single Nvidia H200 has shipped to China since Trump first authorised the sales in December 2025, and US Trade Representative Jamieson Greer told Bloomberg that semiconductor controls were not even on the bilateral agenda. 

The summit theatre obscured a more interesting development underneath it. The H200 isn’t stuck because Washington won’t allow it. Washington already has allowed it. Roughly 10 Chinese firms, including Alibaba, Tencent, ByteDance, and JD.com, hold approved US export licences for up to 75,000 units each, with Lenovo and Foxconn authorised as distributors. The chips aren’t moving because Beijing won’t let its own companies take delivery.

Two frameworks, one deadlock

The mechanics of the stalemate are worth understanding clearly. US rules require that all H200 chips ordered by Chinese clients be used only in China. Beijing, meanwhile, has instructed Chinese tech companies to limit their use of Nvidia chips to overseas operations while supporting domestic manufacturing. The two requirements are mutually exclusive. 

Chips cleared for export cannot legally be deployed where Beijing wants to deploy them, and Beijing won’t authorise the domestic use the US licences require, according to Implicator.

Commerce Secretary Howard Lutnick stated at a Senate hearing last month that Chinese firms are trying to keep their investment focused on domestic suppliers, including Huawei. Beijing’s State Council has also ordered a supply-chain security review aimed at cutting dependence on US semiconductors. 

The policy contradiction is not accidental. That is the point.

What Huawei gained while diplomats talked

The days around the summit produced several data points that matter more for the long term than Trump’s parting comment. DeepSeek confirmed its latest model had been optimised to run on Huawei processors. Tencent’s chief strategy officer said Chinese GPU supply would increase progressively through 2026, and an Alibaba executive said its T-Head proprietary GPUs had achieved scaled mass production. 

This follows the April launch of DeepSeek V4, which adapted the model for Huawei’s Ascend chips – the first major Chinese frontier model to do so in training, not just inference. What the summit week confirmed is that the shift is no longer experimental. It is now a supply-chain policy. Nvidia’s China revenue has fallen to roughly 5% in recent quarters, down from above 20% before export controls tightened. The company’s own guidance for the current quarter assumes zero revenue from China. 

Huang’s last-minute inclusion in the delegation – Trump called him directly after seeing media coverage that he had not been invited – suggested urgency. The outcome suggested the limits of what CEO diplomacy can achieve when the obstruction is structural, not procedural.

The read for the AI industry

The stalemate matters beyond bilateral optics. Chinese AI platforms are now operating under a domestic mandate to build on Huawei’s compute stack. The question of which AI hardware architecture becomes dominant in the world’s second-largest AI market is being answered not by technical benchmarks but by government directive.

Beijing steering platforms toward Huawei Ascend chips rather than Nvidia H200S is not just a trade posture. It is a structural bet that the performance gap will close fast enough that being locked into the domestic stack is manageable. DeepSeek V4’s results suggest it may be right, at least for inference workloads. 

Trump said something could happen. Greer said the decision is sovereign for China. Both are true, and neither changes the current position: the H200 deal is approved, licensed, and frozen, with Huawei filling the space it leaves behind.

(Image source: The White House)

See Also: Can China’s chip stacking strategy really challenge Nvidia’s AI dominance?

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 part of TechEx and co-located with other leading technology events. Click here for more information.

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