Microsoft has developed artificial intelligence that can be used by American spies, deeming it safe because it is completely divorced from the internet. It is the first time a large language model has been fully separated from the online world and worked, a senior executive at the company told Bloomberg. Most AI models, including OpenAI’s ChatGPT, which is backed by Microsoft, rely on cloud services to learn and infer patterns from data. However, Microsoft said it wanted to deliver a truly secure system to the US intelligence community. William Chappell, Microsoft’s chief technology officer for strategic missions and technology, said the system has an “air-gapped” environment that is isolated from the internet. Sheetal Patel, assistant director of the CIA for the Transnational and Technology Mission Center, told a security conference last month: “There is a race to get generative AI onto intelligence data.” She said that the first country to use generative AI for their intelligence would win that race, adding: “And I want it to be us.” Read the latest updates below. Thanks for joining us today. We’ll be back tomorrow morning ahead of the markets opening in London. But I’ll leave you with a report from our economics...