Trump orders review of tariffs over digital service taxes

US President Donald Trump has directed his trade officials to revive investigations into digital service taxes imposed by foreign countries on American tech giants.

The move could lead to new tariffs on imports from nations like France, Canada, and India, which have introduced taxes targeting major firms such as Google, Meta, Apple, and Amazon. Trump argues that these levies unfairly exploit US companies and has vowed to protect America’s tax base from foreign appropriation.

The renewed probe follows previous investigations during Trump’s first term, where the US Trade Representative found that several countries discriminated against American firms, paving the way for potential retaliatory tariffs.

While the Biden administration initially imposed 25% tariffs on goods from countries with digital taxes, these duties were suspended to allow for global tax negotiations. However, with talks stalling and the US rejecting the 15% global minimum tax, Trump has now abandoned the deal entirely.

The new directive also calls for scrutiny of the Digital Markets Act and Digital Services Act imposed by the European Union, assessing whether they encourage censorship or undermine free speech for US companies.

As tensions grow, the US could impose fresh tariffs on billions of dollars worth of foreign imports. Trump has not yet revealed the specific tariff rates or the value of goods that may be targeted in this latest round of trade actions.

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Genspark expands AI search efforts with fresh $100 million investment

AI search startup Genspark has secured $100 million in a Series A funding round, raising its valuation to $530 million as it aims to disrupt Google’s dominance in the search engine market.

Backed by United States and Singapore-based investors, the Palo Alto-based firm now boasts over two million monthly active users. The funding follows a $60 million seed round last June, continuing Genspark’s rapid growth.

Led by CEO Eric Jing, formerly head of Baidu’s AI-powered Xiaodu unit, Genspark is positioning itself as a major contender in the AI-driven search space. Its platform uses multiple AI models working together to conduct detailed online research, aiming to provide users with streamlined, citation-backed answers—an approach that contrasts Google’s traditional list of links.

The competition in AI search has intensified, with rivals like OpenAI’s ChatGPT integrating real-time search capabilities and Perplexity reaching a $9 billion valuation.

Google is also testing AI-enhanced search results, highlighting the growing pressure to innovate in the industry. Genspark’s latest funding positions it to expand its technology and user base as the battle for AI-powered search heats up.

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Digital assistant bridges the counsellor gap

A new digital wellbeing companion, known as Sonny, is now being introduced in several schools across nine districts. Developed by Sonar Mental Health, this tool combines artificial intelligence with human oversight to provide initial mental health support to students.

Students can send their queries via text, with the AI suggesting responses that are ultimately reviewed by a dedicated team of professionals experienced in psychology, social work, and crisis intervention. This approach comes at a time when many schools are facing a severe shortage of qualified counsellours, with recent data revealing that 17 per cent of high schools lack a dedicated counsellour.

CEO Drew Bavir has emphasised that Sonny is not meant to replace professional therapy. Instead, it acts as a first point of contact, with Sonar staff ready to work alongside schools and parents to secure access to further specialist support when needed. This initiative represents a significant step forward in addressing the growing mental health challenges within schools.

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AI helps decode emotions in seven animal species

A groundbreaking study from the University of Copenhagen has demonstrated that AI can decode emotions in animals. By training a machine-learning model to analyse the vocal patterns of seven ungulate species, including cows, pigs, and wild boars, the research achieved an impressive accuracy rate of 89.49%. This study, the first of its kind to cross species, marks a significant step forward in understanding animal emotions.

The AI model identified key acoustic indicators of emotional states, such as duration, frequency, and amplitude of vocalisations, revealing that emotional expressions are evolutionarily conserved across species. This discovery could revolutionise animal welfare, enabling real-time monitoring of animals’ emotional well-being, particularly in livestock management, veterinary care, and conservation efforts.

The implications for animal welfare are profound. Early detection of stress or discomfort could lead to timely interventions, improving animals’ lives. Additionally, promoting positive emotions could enhance overall welfare. The researchers have made their emotional call database publicly available to support further studies and encourage more AI-driven research in animal welfare and conservation.

This study not only sheds new light on animal emotions but also offers insights into the evolutionary roots of human language, opening up exciting possibilities for future scientific exploration and better understanding of animal behaviour.

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Bluesky teams up with IWF to tackle harmful content

Bluesky, the rapidly growing decentralised social media platform, has partnered with the UK-based Internet Watch Foundation (IWF) to combat the spread of child sexual abuse material (CSAM). As part of the collaboration, Bluesky will gain access to the IWF’s tools, which include a list of websites containing CSAM and a catalogue of digital fingerprints, or ‘hashes,’ that identify abusive images. This partnership aims to reduce the risk of users encountering illegal content while helping to keep the platform safe from such material.

Bluesky’s head of trust and safety, Aaron Rodericks, welcomed the partnership as a significant step in protecting users from harmful content. With the platform’s rapid growth—reaching over 30 million users by the end of last month—the move comes at a crucial time. In November, Bluesky announced plans to expand its moderation team to address the rise in harmful material following the influx of new users.

The partnership also highlights the growing concern over online child sexual abuse material. The IWF reported record levels of harmful content last year, with over 291,000 web pages removed from the internet. The foundation’s CEO, Derek Ray-Hill, stressed the urgency of tackling the crisis, calling for a collective effort from governments, tech companies, and society.

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Musk faces growing competition in satellite internet

Elon Musk’s Starlink network is facing increasing competition in the satellite internet market, particularly from SpaceSail, a Shanghai-based company backed by the Chinese government, and Amazon’s Project Kuiper. SpaceSail is expanding rapidly, having entered Brazil in November and begun operations in Kazakhstan by January. Meanwhile, Brazil is also in talks with Project Kuiper and Canada’s Telesat to diversify its options for providing high-speed internet to remote areas.

SpaceSail plans to launch 648 low Earth orbit (LEO) satellites this year, with the ambition of deploying up to 15,000 by 2030. This move aims to compete directly with Starlink, which currently operates around 7,000 satellites but plans to increase its constellation to 42,000 by the end of the decade. China’s push into satellite internet is part of its broader strategy to dominate space and digital technologies, which has raised concerns among Western governments, particularly regarding Beijing’s potential to extend its censorship and surveillance reach globally.

China’s rapid expansion in satellite technology, supported by state funding and military research, has intensified. It has launched 263 LEO satellites in the past year alone, and researchers are focusing on low-latency systems to compete with Starlink’s capabilities. The Chinese government is also exploring ways to track and monitor satellite constellations, potentially targeting Starlink as a strategic competitor.

As competition in the satellite internet sector intensifies, particularly between the US, China, and other players like Brazil, the geopolitical and military implications of these space technologies are becoming clearer. With nations striving to secure positions in space, experts warn of an increasingly complex and competitive environment.

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Alibaba commits $52 billion to AI and cloud infrastructure

Alibaba has announced plans to invest at least 380 billion yuan ($52.44 billion) in cloud computing and AI infrastructure over the next three years. This significant investment, revealed on Monday, follows the company’s earnings announcement on Friday, where it reported revenue of 280.15 billion yuan for the quarter ending December 31, slightly surpassing analysts’ expectations. The investment in AI and cloud computing will exceed the company’s total spending in these areas over the past decade.

The announcement marks a strategic push for Alibaba in the rapidly growing AI sector, positioning the company as a key player in China’s AI race. This has already paid off in the stock market, with Alibaba’s shares climbing over 68% so far this year, reflecting strong investor confidence. The move also comes as other Chinese tech giants, such as ByteDance, are making similar investments, with ByteDance reportedly allocating over 150 billion yuan this year to enhance its AI capabilities.

This wave of investment underscores the growing importance of AI and cloud computing to China’s tech landscape. It also highlights the competitive race between Chinese firms to dominate these sectors and secure their positions in the global technology arena.

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Australia slaps A$1 million fine on Telegram

Australia’s eSafety Commission has fined messaging platform Telegram A$1 million ($640,000) for failing to respond promptly to questions regarding measures it took to prevent child abuse and extremist content. The Commission had asked social media platforms, including Telegram, to provide details on their efforts to combat harmful content. Telegram missed the May 2024 deadline, submitting its response in October, which led to the fine.

eSafety Commissioner Julie Inman Grant emphasised the importance of timely transparency and adherence to Australian law. Telegram, however, disagreed with the penalty, stating that it had fully responded to the questions, and plans to appeal the fine, which it claims was solely due to the delay in response time.

The fine comes amid increasing global scrutiny of Telegram, with growing concerns over its use by extremists. Australia’s spy agency recently noted that a significant portion of counter-terrorism cases involved youth, highlighting the increasing risk posed by online extremist content. If Telegram does not comply with the penalty, the eSafety Commission could pursue further legal action.

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Huawei’s Ren discusses China’s tech growth with Xi

Huawei’s founder Ren Zhengfei told President Xi Jinping that China’s concerns about a lack of domestically developed chips and operating systems have eased, following a meeting with key entrepreneurs. According to Chinese state media, Ren expressed confidence that China would rise faster, thanks to its advancements in technology, particularly in semiconductors and software. The phrase ‘lack of core and soul,’ which refers to the absence of critical technology like chips and operating systems, was first used in 1999 to highlight challenges in China’s information industry.

The meeting, which included prominent founders such as BYD’s Wang Chuanfu and Xiaomi’s Lei Jun, discussed the achievements and growth in sectors like electric vehicles and electronics. Ren’s comments reflected the progress made despite challenges like US sanctions, with Huawei playing a key role in pushing for China’s self-sufficiency. Wang shared how China’s EV industry had grown significantly, while Lei praised Xi’s leadership, stating that under his guidance, any challenges could be overcome.

Other entrepreneurs, including representatives from Will Semiconductor, Unitree Robotics, and New Hope Group, also spoke at the meeting, although details about their comments were not widely disclosed. The meeting was part of a broader push for China to strengthen its technological independence.

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Quantum computing could render today’s encryption obsolete

The rise of quantum computing poses a serious threat to modern encryption systems, with experts warning that critical digital infrastructure could become vulnerable once quantum devices reach sufficient power.

Unlike classical computers that process binary bits, quantum computers use qubits, allowing them to perform vast numbers of calculations simultaneously.

This capability could make breaking widely used encryption methods, like RSA, possible in minutes—something that would take today’s computers thousands of years.

Although quantum systems powerful enough to crack encryption may still be years away, there is growing concern that hackers could already be collecting encrypted data to decode it once the technology catches up.

Sensitive information—such as national security data, intellectual property, and personal records—could be at risk. In response, the US National Institute of Standards and Technology has introduced new post-quantum encryption standards and is encouraging organisations to transition swiftly, though the scale of the upgrade needed across global infrastructure remains immense.

Updating web browsers and modern devices may be straightforward, but older systems, critical infrastructure, and the growing number of Internet of Things (IoT) devices pose significant challenges.

Satellites, for instance, vary in how easily they can be upgraded, with remote sensing satellites often requiring full replacements. Cybersecurity experts stress the need for ‘crypto agility’ to make the transition manageable, aiming to avoid a chaotic scramble once quantum threats materialise.

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