Competition regulation Archives | Page 52 of 108

Court filing details Musk’s outreach to Zuckerberg over OpenAI bid

Elon Musk attempted to bring Meta chief executive Mark Zuckerberg into his consortium’s $97.4 billion bid for OpenAI earlier this year, the company disclosed in a court filing.

According to sworn interrogations, OpenAI said Musk had discussed possible financing arrangements with Zuckerberg as part of the bid. Musk’s AI startup xAI, a competitor to OpenAI, did not respond to requests for comment.

In the filing, OpenAI asked a federal judge to order Meta to provide documents related to any bid for OpenAI, including internal communications about restructuring or recapitalisation. The firm argued these records could clarify motivations behind the bid.

Meta countered that such documents were irrelevant and suggested OpenAI seek them directly from Musk or xAI. A US judge ruled that Musk must face OpenAI’s claims of attempting to harm the company through public remarks and what it described as a sham takeover attempt.

The legal dispute follows Musk’s lawsuit against OpenAI and Sam Altman over its for-profit transition, with OpenAI filing a countersuit in April. A jury trial is scheduled for spring 2026.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Russia pushes mandatory messaging app Max on all new devices

Russia will require all new mobile phones and tablets sold starting in September, including a government-backed messenger called Max. Developed by Kremlin-controlled tech firm VK, the app offers messaging, video calls, mobile payments, and access to state services.

Authorities claim Max is a safe alternative to Western apps, but critics warn it could act as a state surveillance tool. The platform is reported to collect financial data, purchase history, and location details, all accessible to security services.

Journalist Andrei Okun described Max as a ‘Digital Gulag’ designed to control daily life and communications.

The move is part of Russia’s broader push to replace Western platforms. New restrictions have already limited calls on WhatsApp and Telegram, and officials hinted that WhatsApp may face a ban.

Telegram remains widely used but is expected to face greater pressure as the Kremlin directs officials to adopt Max.

VK says Max has already attracted 18 million downloads, though parts of the app remain in testing. From 2026, Russia will also require smart TVs to come preloaded with a state-backed service offering free access to government channels.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Google pushes agentic AI worldwide with AI Mode rollout

Google has expanded its AI Mode service to 180 additional countries, extending advanced agentic capabilities to a global audience.

Previously available only in markets such as the US, UK and India, the service allows users to search for information and carry out tasks on their behalf. The update reflects Google’s ambition to move from simple answers to action-oriented assistance.

A key rollout feature is the restaurant booking tool for AI Ultra subscribers. Using natural language requests such as ”find a romantic Italian spot for two tonight,” the system can check availability, offer personalised suggestions and confirm reservations directly within search.

The feature relies on real-time data from partners like OpenTable and highlights how Google’s AI can execute tasks instead of simply presenting options.

Further tools are expected soon, including ticketing for events and appointment scheduling. These are powered by the Gemini models, which tailor recommendations based on user behaviour and allow group planning through shared responses.

While the services could reduce reliance on third-party apps in sectors such as travel and hospitality, they also raise concerns over data privacy, inclusivity and cultural differences in an English-only rollout.

The global expansion strengthens Google’s position against rivals like Microsoft and OpenAI, who are also pushing forward in agentic AI. The company sees subscription upgrades to AI Ultra as a way to offset slower advertising growth, while early reports suggest increased user engagement.

However, the long-term impact will depend on balancing innovation with ethical safeguards as Google works to deliver more multilingual and accessible features.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Turkey plans 5G rollout after October auction and spectrum allocations

Turkey’s government is preparing a long-awaited 5G frequency auction in October, with the Transport and Infrastructure Minister announcing that the first services should begin in 2026.

The auction will offer 11 spectrum packages across the 700 MHz and 3.5 GHz bands, with individual packages valued between $50 million and $425 million. The minimum total reserve price is set at $2.13 billion. Operators Turkcell, Türk Telekom and Vodafone Turkey are expected to participate.

Existing mobile licences, set to expire in 2029, will be rolled over through this process. Operators will be required to contribute 5 percent of their annual revenues as part of the renewal. The government aims for full nationwide 5G rollout within a few years following the initial launch.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Fed urges banks to embrace blockchain innovation

Federal Reserve Vice Chair for Supervision Michelle Bowman has warned that banks must embrace blockchain technology or risk fading into irrelevance. At the Wyoming Blockchain Symposium on 19 August, she urged banks and regulators to drop caution and embrace innovation.

Bowman highlighted tokenisation as one of the most immediate applications, enabling assets to be transferred digitally without intermediaries or physical movement.

She explained that tokenised systems could cut operational delays, reduce risks, and expand access across large and smaller banks. Regulatory alignment, she added, could accelerate tokenisation from pilots to mainstream adoption.

Fraud prevention was also a key point of her remarks. Bowman said financial institutions face growing threats from scams and identity theft, but argued blockchain could help reduce fraud.

She called for regulators to ensure frameworks support adoption rather than hinder it, framing the technology as a chance for collaboration between the industry and the Fed.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

MIT highlights divide in business AI project success

A new MIT study has found that 95% of corporate AI projects fail to deliver returns, mainly due to difficulties integrating them with existing workflows.

The report, ‘The GenAI Divide: State of AI in Business 2025’, examined 300 deployments and interviewed 350 employees. Only 5% of projects generated value, typically when focused on solving a single, clearly defined problem.

Executives often blamed model performance, but researchers pointed to a workforce ‘learning gap’ as the bigger barrier. Many projects faltered because staff were unprepared to adapt processes effectively.

More than half of GenAI budgets were allocated to sales and marketing, yet the most substantial returns came from automating back-office tasks, such as reducing agency costs and streamlining roles.

The study also found that tools purchased from specialised vendors were nearly twice as successful as in-house systems, with success rates of 67% compared to 33%.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Crypto executives urged UK to create national stablecoin strategy

Thirty crypto executives have urged Finance Minister Rachel Reeves to adopt a national stablecoin strategy, warning the UK could fall behind faster-moving markets. Their letter warned that the UK could remain a ‘rule-taker’ in digital assets without regulation.

The executives criticised the UK’s current legal definition of stablecoins as outdated and misleading, likening it to defining a cheque merely as’ paper concerning currency.’

They argue that stablecoins should be recognised as digital payment rails already used globally. Signatories include Coinbase, Kraken, Copper, Fireblocks, BitGo, and VanEck leaders, calling for regulation that treats stablecoins as financial infrastructure rather than risks.

Analysts stress stablecoins remain essential, acting as the ‘cash equivalent’ for digital assets and enabling faster blockchain transfers than traditional banking.

Industry experts, including HSBC’s Daragh Maher, emphasised that growth depends on a suitable regulatory environment. Clear rules could strengthen the UK’s global financial role and let stablecoins play a key part in its digital finance system.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

CBA reverses AI-driven job cuts after union pressure

The Commonwealth Bank of Australia has reversed plans to cut 45 customer service roles following union pressure over the use of AI in its call centres.

The Finance Sector Union argued that CBA was not transparent about call volumes, taking the case to the Workplace Relations Tribunal. Staff reported rising workloads despite claims that the bank’s voice bot reduced calls by 2,000 weekly.

CBA admitted its redundancy assessment was flawed, stating that it had not fully considered the business needs. Impacted employees are being offered the option to remain in their current roles, relocate within the firm, or depart.

The Bank of Australia apologised and pledged to review internal processes. Chief executive Matt Comyn has promoted AI adoption, including a new partnership with OpenAI, but the union called the reversal a ‘massive win’ for workers.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

DeepSeek launches upgraded AI system with stronger agent capability

DeepSeek has released a minor upgrade, V3.1, yet conspicuously omitted any R1 label from its chatbot, leading to speculation over the status of the promised R2 model.

The V3.1 version includes improvements such as an expanded 128K token context window for holding more information per interaction, but lacks major innovation beyond that. Observers note that the absence of R1 suggests that DeepSeek may be reworking its roadmap or shifting focus.

Industry watchers point to the gap this update left, especially in light of delays reported for the R2 model, which has faced technical setbacks due to hardware issues and training challenges with domestic chips. Competitors are now gaining ground as a result.

With no official statement from DeepSeek and a quieter-than-usual announcement, delivered only to a WeChat user group, analysts are questioning whether the company is rethinking its product sequencing or concealing delays in rolling out the next-generation R2 reasoning model.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Meta freezes hiring as AI costs spark investor concern

Meta has frozen hiring in its AI division, halting a spree that had drawn top researchers with lucrative offers. The company described the pause as basic organisational planning, aimed at building a more stable structure for its superintelligence ambitions.

The freeze, first reported by the Wall Street Journal, began last week and prevents employees in the unit from transferring to other teams. Its duration has not been communicated, and Meta declined to comment on the number of hires already made.

The decision follows growing tensions inside the newly created Superintelligence Labs, where long-serving researchers have voiced concerns over disparities in pay and recognition compared with recruits.

Alexandr Wang, who leads the division, recently told staff that superintelligence is approaching and that significant changes are necessary to prepare. His email outlined Meta’s most significant reorganisation of its AI efforts.

The pause also comes amid investor scrutiny, as analysts warn that heavy reliance on stock-based compensation to attract talent could fuel innovation or dilute shareholder value without precise results.

Despite these concerns, Meta’s stock has risen by about 28% since the start of the year, reflecting continued investor confidence in the company’s long-term prospects.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!