Critical infrastructure

Microsoft restores Exchange and Teams after Microsoft 365 disruption

The US tech giant, Microsoft, investigated a service disruption affecting Exchange Online, Teams and other Microsoft 365 services after users reported access and performance problems.

An incident that began late on Wednesday affected core communication tools used by enterprises for daily operations.

Engineers initially focused on diagnosing the fault, with Microsoft indicating that a potential third-party networking issue may have interfered with access to Outlook and Teams.

During the disruption, users experienced intermittent connectivity failures, latency and difficulties signing in across parts of the Microsoft 365 ecosystem.

Microsoft later confirmed that service access had been restored, although no detailed breakdown of the outage scope was provided.

The incident underlined the operational risks associated with cloud productivity platforms and the importance of transparency and resilience in enterprise digital infrastructure.

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From chips to jobs: Huang’s vision for AI at Davos 2026

AI is evolving into a foundational economic system rather than a standalone technology, according to NVIDIA chief executive Jensen Huang, who described AI as a five-layer infrastructure spanning energy, hardware, data centres, models and applications.

Speaking at the World Economic Forum in Davos, Huang argued that building and operating each layer is triggering what he called the most significant infrastructure expansion in human history, with job creation stretching from power generation and construction to cloud operations and software development.

Investment patterns suggest a structural shift instead of a speculative cycle. Venture capital funding in 2025 reached record levels, largely flowing into AI-native firms across healthcare, manufacturing, robotics and financial services.

Huang stressed that the application layer will deliver the most significant economic return as AI moves from experimentation to core operational use across industries.

Concerns around job displacement were framed as misplaced. AI automates tasks rather than replacing professional judgement, enabling workers to focus on higher-value activities.

In healthcare, productivity gains from AI-assisted diagnostics and documentation are already increasing demand for radiologists and nurses rather than reducing headcount, as improved efficiency enables institutions to treat more patients.

Huang positioned AI as critical national infrastructure, urging governments to develop domestic capabilities aligned with local language, culture and industrial strengths.

He described AI literacy as an essential skill, comparable to leadership or management, while arguing that accessible AI tools could narrow global technology divides rather than widen them.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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South Korea sets the global standard for frontier AI regulation

South Korea will begin enforcing its Artificial Intelligence Act on Thursday, becoming the first country to introduce formal safety requirements for high-performance, or frontier, AI systems, reshaping the global regulatory landscape.

The law establishes a national AI governance framework, led by the Presidential Council on National Artificial Intelligence Strategy, and creates an AI Safety Institute to oversee safety and trust assessments.

Alongside regulatory measures, the government is rolling out broad support for research, data infrastructure, talent development, startups, and overseas expansion, signalling a growth-oriented policy stance.

To minimise early disruption, authorities will introduce a minimum one-year grace period centred on guidance, consultation, and education rather than enforcement.

Obligations cover three areas: high-impact AI in critical sectors, safety rules for frontier models, and transparency requirements for generative AI, including disclosure of realistic synthetic content.

Enforcement remains light-touch, prioritising corrective orders over penalties, with fines capped at 30 million won for persistent noncompliance. Officials said the framework aims to build public trust while supporting innovation, serving as a foundation for ongoing policy development.

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How Microsoft is shaping UN reform through digital infrastructure

Microsoft has announced a multi-year pledge to support the United Nations’ UN80 reform initiative, positioning AI and digital infrastructure as central tools for modernising multilateral governance.

The commitment follows agreement among all UN member states on efficiency and financial-stability measures, as the organisation faces growing operational demands amid constrained resources.

The initiative includes a dedicated innovation fund, preferential pricing for digital services, and free AI training for UN staff across agencies and missions.

Rather than focusing on policy direction, Microsoft frames its role as enabling institutional capacity, from procurement and logistics to humanitarian response and development planning, while encouraging other private-sector actors to align behind UN80 priorities.

Microsoft also plans to mobilise partners such as EY to support reform efforts, reinforcing a model where large technology firms contribute expertise, infrastructure, and coordination capacity to global governance systems.

Previous collaborations with UNICEF, UNHCR, ITU, and the ILO are cited as evidence that AI-driven tools can accelerate service delivery at scale.

The pledge highlights how multilateral reform increasingly depends on private technological ecosystems instead of purely intergovernmental solutions.

As AI becomes embedded in the core operations of international institutions, questions around accountability, influence, and long-term dependency are likely to shape debates about the future balance between public authority and corporate power.

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WhatsApp faces growing pressure in Russia

Authorities in Russia are increasing pressure on WhatsApp, one of the country’s most widely used messaging platforms. The service remains popular despite years of tightening digital censorship.

Officials argue that WhatsApp refuses to comply with national laws on data storage and cooperation with law enforcement. Meta has no legal presence in Russia and continues to reject requests for user information.

State backed alternatives such as the national messenger Max are being promoted through institutional pressure. Critics warn that restricting WhatsApp targets private communication rather than crime or security threats.

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Davos 2026 reveals competing visions for AI

AI has dominated debates at Davos 2026, matching traditional concerns such as geopolitics and global trade while prompting deeper reflection on how the technology is reshaping work, governance, and society.

Political leaders, executives, and researchers agreed that AI development has moved beyond experimentation towards widespread implementation.

Microsoft chief executive Satya Nadella argued that AI should deliver tangible benefits for communities and economies, while warning that adoption will remain uneven due to disparities in infrastructure and investment.

Access to energy networks, telecommunications, and capital was identified as a decisive factor in determining which regions can fully deploy advanced systems.

Other voices at Davos 2026 struck a more cautious tone. AI researcher Yoshua Bengio warned against designing systems that appear too human-like, stressing that people may overestimate machine understanding.

Philosopher Yuval Noah Harari echoed those concerns, arguing that societies lack experience in managing human and AI coexistence and should prepare mechanisms to correct failures.

The debate also centred on labour and global competition.

Anthropic’s Dario Amodei highlighted geopolitical risks and predicted disruption to entry-level white-collar jobs. At the same time, Google DeepMind chief Demis Hassabis forecast new forms of employment alongside calls for shared international safety standards.

Together, the discussions underscored growing recognition that AI governance will shape economic and social outcomes for years ahead.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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UNESCO raises alarm over government use of internet shutdowns

Yesterday, UNESCO expressed growing concern over the expanding use of internet shutdowns by governments seeking to manage political crises, protests, and electoral periods.

Recent data indicate that more than 300 shutdowns have occurred across over 54 countries during the past two years, with 2024 recorded as the most severe year since 2016.

According to UNESCO, restricting online access undermines the universal right to freedom of expression and weakens citizens’ ability to participate in social, cultural, and political life.

Access to information remains essential not only for democratic engagement but also for rights linked to education, assembly, and association, particularly during moments of instability.

Internet disruptions also place significant strain on journalists, media organisations, and public information systems that distribute verified news.

Instead of improving public order, shutdowns fracture information flows and contribute to the spread of unverified or harmful content, increasing confusion and mistrust among affected populations.

UNESCO continues to call on governments to adopt policies that strengthen connectivity and digital access rather than imposing barriers.

The organisation argues that maintaining open and reliable internet access during crises remains central to protecting democratic rights and safeguarding the integrity of information ecosystems.

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New EU cybersecurity package strengthens resilience and ENISA powers

The European Commission has unveiled a broad cybersecurity package that moves the EU beyond certification reform towards systemic resilience across critical digital infrastructure.

Building on plans to expand EU cybersecurity certification beyond products and services, the revised Cybersecurity Act introduces a risk-based framework for securing ICT supply chains, with particular focus on dependencies, foreign interference, and high-risk third-country suppliers.

A central shift concerns supply-chain security as a geopolitical issue. The proposal enables mandatory derisking of mobile telecommunications networks, reinforcing earlier efforts under the 5G security toolbox.

Certification reform continues through a redesigned European Cybersecurity Certification Framework, promising clearer governance, faster scheme development, and voluntary certification that can cover organisational cyber posture alongside technical compliance.

The package also tackles regulatory complexity. Targeted amendments to the NIS2 Directive aim to ease compliance for tens of thousands of companies by clarifying jurisdictional rules, introducing a new ‘small mid-cap’ category, and streamlining incident reporting through a single EU entry point.

Enhanced ransomware data collection and cross-border supervision are intended to reduce fragmentation while strengthening enforcement consistency.

ENISA’s role is further expanded from coordination towards operational support. The agency would issue early threat alerts, assist in ransomware recovery with national authorities and Europol, and develop EU-wide vulnerability management and skills attestation schemes.

Together, the measures signal a shift from fragmented safeguards towards a more integrated model of European cyber sovereignty.

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Sovereign AI race continues with three finalists in South Korea

South Korea has narrowed its race to develop a sovereign AI model, eliminating Naver and NCSoft from the government-backed competition. LG AI Research, SK Telecom, and Upstage now advance toward final selection by 2027.

The Ministry of Science and ICT emphasised that independent AI must be trained from scratch with initialised weights. Models reusing pre-trained results, even open source, do not meet this standard.

A wild-card round allows previously eliminated teams to re-enter the competition. Despite this option, major companies have declined, citing unclear benefits and high resource demands.

Industry observers warn that reduced participation could slow momentum for South Korea’s AI ambitions. The outcome is expected to shape the country’s approach to homegrown AI and technological independence.

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Browser extension malware hits millions worldwide

Millions of browser users installed popular extensions that later became spyware as part of a long-running malware operation. Researchers linked over 100 Chrome, Edge and Firefox extensions to the DarkSpectre hacker group.

Attackers kept extensions legitimate for years before quietly activating malicious behaviour. Hidden code embedded in image files helped bypass security reviews in official browser stores.

The campaign enabled large-scale surveillance by collecting real-time browsing activity and corporate meeting data. Analysts warn that such information supports phishing, impersonation and corporate espionage.

Experts urge users to remove unused extensions and question excessive permission requests. Regular browser updates and cautious extension management remain essential cyber defences.

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