AI governance clashes hit industry pledges and geopolitics

U.S. diplomats ordered to resist data sovereignty rules. A February 18 diplomatic cable instructs U.S. envoys to counter foreign data localisation and sovereignty initiatives that could restrict cross‑border flows for AI and cloud services, framing such measures as burdensome and risky for cybersecurity and civil liberties (Reuters)

California launches AI oversight unit as public and private governance hardens

Reuters reports that California Attorney General Rob Bonta launched an AI oversight and accountability programme while continuing an investigation into xAI over alleged non consensual sexualised imagery generated by Grok. This matters for AI governance because it pairs institution building with an active enforcement posture, which raises the bar for auditable safeguards, monitoring, and rapid incident response.