Competition regulation

Bank of England faces backlash over stablecoin cap plans

Cryptocurrency groups are urging the Bank of England to abandon proposals that would cap the amount of stablecoins individuals and businesses can hold. Industry leaders argue the measures would leave the UK with stricter oversight than the US and the European Union.

Under the plan, individuals would face limits between £10,000 and £20,000, while businesses would be restricted to about £10 million in systemic stablecoins.

The central bank maintains that caps are needed to protect financial stability and prevent deposit outflows from banks. Executives argue the approach is unworkable and could damage London’s role as an economic hub.

Coinbase executive Tom Duff Gordon warned the limits would harm UK savers and undermine confidence in sterling. Others highlighted practical issues, noting that enforcement could require digital IDs, and pointed out the absence of similar caps on cash or bank accounts.

The Payments Association said the rules’ make no sense’ given how other jurisdictions are approaching stablecoins.

By contrast, the US introduced the GENIUS Act in July, setting licensing and reserve requirements without placing restrictions on holdings. The EU’s MiCA framework also avoids caps, focusing instead on reserves, governance, and regulatory oversight.

Industry voices now caution that the UK risks falling behind its global peers if the BoE proceeds with the current plan.

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Google lays off over 200 AI contractors amid union tensions

The US tech giant, Google, has dismissed over 200 contractors working on its Gemini chatbot and AI Overviews tool. However, this sparks criticism from labour advocates and claims of retaliation against workers pushing for unionisation.

Many affected staff were highly trained ‘super raters’ who helped refine Google’s AI systems, yet were abruptly laid off.

The move highlights growing concerns over job insecurity in the AI sector, where companies depend heavily on outsourced and low-paid contract workers instead of permanent employees.

Workers allege they were penalised for raising issues about inadequate pay, poor working conditions, and the risks of training AI that could eventually replace them.

Google has attempted to distance itself from the controversy, arguing that subcontractor GlobalLogic handled the layoffs rather than the company itself.

Yet critics say that outsourcing allows the tech giant to expand its AI operations without accountability, while undermining collective bargaining efforts.

Labour experts warn that the cuts reflect a broader industry trend in which AI development rests on precarious work arrangements. With union-busting claims intensifying, the dismissals are now seen as part of a deeper struggle over workers’ rights in the digital economy.

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China’s market watchdog finds Nvidia violated antitrust law

China’s State Administration for Market Regulation (SAMR) has issued a preliminary finding that Nvidia violated antitrust law linked to its 2020 acquisition of Mellanox Technologies. The deal was approved with restrictions, including a ban on bundling and ‘unreasonable trading conditions’ in China.

SAMR now alleges that Nvidia breached those terms. A full investigation is underway. Nvidia shares fell 2.4% in pre-market trading after the announcement. According to the Financial Times, SAMR delayed releasing the findings to gain leverage in trade talks with the USA, currently taking place in Madrid.

At the same time, US export controls on advanced chips remain a challenge for Nvidia. Licensing for its China-specific H20 chips is still under review, affecting Nvidia’s access to the Chinese market.

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Industry leaders urge careful AI use in research projects

The 2026 Adwanted Media Research Awards will feature a new category for Best Use of AI in Research Projects, reflecting the growing importance of this technology in the industry.

Head judge Denise Turner of IPA said AI should be viewed as a tool to expedite workflows, not replace human insight, emphasising that researchers remain essential to interpreting results and posing the right questions.

Route CEO Euan Mackay said AI enables digital twins, synthetic data, and clean-room integrations, shifting researchers’ roles from survey design to auditing and ensuring data integrity in an AI-driven environment.

OMD’s Laura Rowe highlighted AI’s ability to rapidly process raw data, transcribe qualitative research, and extend insights across strategy and planning — provided ethical oversight remains in place.

ITV’s Neil Mortensen called this the start of a ‘gold rush’, urging the industry to use AI to automate tedious tasks while preserving rigorous methods and enabling more time for deep analysis.

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German state pushes digital sovereignty

The northern German state of Schleswig-Holstein is pushing ahead with an ambitious plan to replace Microsoft software in its public administration with open-source alternatives.

With around 30,000 civil servants, a workforce comparable to the European Commission, the region has already migrated most staff to new systems. It expects to cut its Office licences by more than two-thirds before the end of the month.

Instead of relying on Word, Outlook or SharePoint, staff are switching to LibreOffice, Thunderbird, Open Xchange and Nextcloud. A Linux pilot is also underway, testing the replacement of Windows itself.

The digital minister, Dirk Schrödter, admitted the schedule is tight but said that 24,000 employees are already using the new setup. By 2029, only a handful of Microsoft licences should remain, kept for compatibility with federal services.

A transition that has not been free of challenges. Some judges have called for a return to Outlook, citing outages, while larger providers such as SAP have proven difficult to adapt.

Still, Schrödter argued the investment is about sovereignty rather than cost-cutting, comparing Europe’s reliance on Big Tech to its dependence on Russian gas before 2022. He urged Brussels to prioritise open-source solutions in procurement rules to reduce dependence on foreign tech giants.

Although Schleswig-Holstein is a relatively small region, its programme has already influenced wider German and European initiatives.

Similar efforts, including Germany’s OpenDesk project, have gained traction in France, Italy and the Netherlands, with several governments now watching the experiment closely.

Schrödter said the state’s progress surprises many observers, but he believes it shows how public administrations can regain control of their digital infrastructure.

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NATO and Seoul expand cybersecurity dialogue and defence ties

South Korea and NATO have pledged closer cooperation on cybersecurity following high-level talks in Seoul this week, according to Yonhap News Agency.

The discussions, led by Ambassador for International Cyber Affairs Lee Tae Woo and NATO Assistant Secretary General Jean-Charles Ellermann-Kingombe, focused on countering cyber threats and assessing risks in the Indo-Pacific and Euro-Atlantic regions.

Launched in 2023, the high-level cyber dialogue aims to deepen collaboration between South Korea and NATO in the cybersecurity domain.

The meeting followed talks between Defence Minister Ahn Gyu-back and NATO Military Committee chair Giuseppe Cavo Dragone during the Seoul Defence Dialogue earlier this week.

Dragone said cooperation would expand across defence exchanges, information sharing, cyberspace, space, and AI as ties between Seoul and NATO strengthen.

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OpenAI moves to for-profit with Microsoft deal

Microsoft and OpenAI have agreed to new non-binding terms that will allow OpenAI to restructure into a for-profit company, marking a significant shift in their long-standing partnership.

The agreement sets the stage for OpenAI to raise capital, pursue additional cloud partnerships, and eventually go public, while Microsoft retains access to its technology.

The previous deal gave Microsoft exclusive rights to sell OpenAI tools via Azure and made it the primary provider of compute power. OpenAI has since expanded its options, including a $300 billion cloud deal with Oracle and an agreement with Google, allowing it to develop its own data centre project, Stargate.

OpenAI aims to maintain its nonprofit arm, which will receive more than $100 billion from the projected $500 billion private market valuation.

Regulatory approval from the attorneys general of California and Delaware is required for the new structure, with OpenAI targeting completion by the end of the year to secure key funding.

Both companies continue to compete across AI products, from consumer chatbots to business tools, while Microsoft works on building its own AI models to reduce reliance on OpenAI technology.

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Broadcom lands $10bn AI chip order

Broadcom has secured a $10 billion agreement to supply custom AI chips, with analysts pointing to OpenAI as the likely customer.

The US semiconductor firm announced the deal alongside better-than-expected third-quarter earnings, driven by growing demand for its ASICs. It forecast a strong fourth quarter as cloud providers seek alternatives to Nvidia, whose GPUs remain costly and supply-constrained.

Chief executive Hock Tan said Broadcom is collaborating with four potential new clients on chip development, adding to existing partnerships with major players such as Google and Meta.

The company recently introduced the Tomahawk Ultra and next-generation Jericho networking chips, further strengthening its position in the AI computing sector.

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AI and cyber priorities headline massive US defence budget bill

The US House of Representatives has passed an $848 billion defence policy bill with new provisions for cybersecurity and AI. Lawmakers voted 231 to 196 to approve the chamber’s version of the National Defence Authorisation Act (NDAA).

The bill mandates that the National Security Agency brief Congress on plans for its Cybersecurity Coordination Centre and requires annual reports from combatant commands on the levels of support provided by US Cyber Command.

It also calls for a software bill of materials for AI-enabled technology that the Department of Defence uses. The Pentagon will be authorised to create up to 12 generative AI projects to improve cybersecurity and intelligence operations.

An adopted amendment allows the NSA to share threat intelligence with the private sector to protect US telecommunications networks. Another requirement is that the Pentagon study the National Guard’s role in cyber response at the federal and state levels.

Proposals to renew the Cybersecurity Information Sharing Act and the State and Local Cybersecurity Grant Program were excluded from the final text. The Senate is expected to approve its version of the NDAA next week.

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CoreWeave scales rapidly to meet AI growth

Nvidia-backed CoreWeave says peak AI investment is still far off, as demand for compute capacity from OpenAI, hyperscalers, enterprises, and governments continues to surge. CEO Michael Intrator said CoreWeave is rapidly scaling to meet soaring global GPU demand.

CoreWeave shares have fallen around 20% despite strong market interest over the past month. The decline follows a higher-than-expected Q2 net loss, $1 billion in capital expenditure, and a projected $500 million this quarter, raising debt concerns.

Since the IPO lockup expiry, insider stock sales have added to the downward pressure.

Intrator defended the company’s strategy, describing debt as the most efficient way to fund growth. Analysts warn CoreWeave shares could stay volatile, though strong AI infrastructure demand supports long-term optimism.

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