Development Archives | Page 363 of 549 | Digital Watch Observatory

Trump weighs tariff cuts to secure TikTok deal

US President Donald Trump has indicated he is willing to reduce tariffs on China as part of a deal with ByteDance, TikTok’s Chinese parent company, to sell the popular short-video app.

ByteDance faces an April 5 deadline to divest TikTok’s US operations or risk a nationwide ban over national security concerns.

The law mandating the sale stems from fears in Washington that Beijing could exploit the app for influence operations and data collection on American users.

Trump suggested he may extend the deadline if negotiations require more time and acknowledged China’s role in the deal’s approval. Speaking to reporters, he hinted that tariff reductions could be used as leverage to finalise an agreement.

China’s commerce ministry responded by reaffirming its stance on trade discussions, stating that engagement with Washington should be based on mutual respect and benefit.

The White House has taken an active role in brokering a potential sale, with discussions centring on major non-Chinese investors increasing their stakes to acquire TikTok’s US operations. Vice President JD Vance has expressed confidence that a framework for the deal could be reached by the April deadline.

Free speech advocates, meanwhile, continue to challenge the law, arguing that banning TikTok could violate the First Amendment rights of American users.

For more information on these topics, visit diplomacy.edu.

Mobile coverage from space may soon be reality

Satellite-based mobile coverage could arrive in the UK by the end of 2025, with Ofcom launching a consultation on licensing direct-to-smartphone services.

The move would allow users to stay connected in areas without mast coverage using an ordinary mobile phone.

The proposal favours mobile networks teaming up with satellite operators to share frequencies in unserved regions, offering limited services like text messaging at first, with voice and data to follow.

Ofcom plans strict interference controls, and Vodafone is among those preparing to roll out such technology.

If approved, the service would be available across the UK mainland and surrounding seas, but not yet in places like the Channel Islands.

The public has until May to respond, as Ofcom seeks to modernise mobile access and help close the digital divide.

For more information on these topics, visit diplomacy.edu.

China’s AI industry is transforming with open-source models, challenging the OpenAI proprietary approach

China’s AI landscape is witnessing a profound transformation as it embraces open-source large language models (LLMs), largely propelled by the innovative efforts of DeepSeek. The startup’s R1 model, released under the highly permissive ‘MIT License,’ has sparked a significant shift away from proprietary approaches dominated by major American tech firms, paving the way for increased accessibility, collaboration, and innovation.

That transition is likened to an ‘Android moment’ for China’s AI industry, highlighting the sector’s move towards more available and flexible AI development. The ripple effects of this open-source movement are evident across China’s tech giants. Baidu, long a proponent of proprietary models, has announced its shift to open-source by making its AI models, Ernie 4.5 and Ernie X1, freely available and plans to release them as open-source.

The following strategic pivot reflects the competitive pressure of disruptors like DeepSeek, prompting companies to revise their business models to maintain market relevance. Alibaba and Tencent are also joining this trend by open-sourcing their AI offerings, while smaller firms like ManusAI are following suit, embracing the open-source ethos to drive innovation and market presence.

The shift towards open-source models in China starkly contrasts the OpenAI’s continued focus on proprietary strategies bolstered by hefty investments. The open-source trend underscores a growing discourse on the future of AI development, investment, and competitive dynamics, with open-source frameworks emerging as potential harbingers of sustainable growth and inclusive technological advancement.

For more information on these topics, visit diplomacy.edu.

Re-evaluating the scaling hypothesis: The AI industry’s shift towards innovative strategies

In recent years, the AI industry has heavily invested in the ‘scaling hypothesis,’ which posited that by expanding data sets, model sizes, and computational power, artificial general intelligence (AGI) could be achieved. That belief, championed by industry leaders like OpenAI and advocated by figures such as Nando de Freitas, led to ventures like the OpenAI/Oracle/Softbank joint project Stargate and fuelled a half-trillion-dollar quest for AI breakthroughs.

Yet, scepticism has grown, as critics have pointed out that scaling often falls short of fostering genuine comprehension. Models continue to produce errors, hallucinations, and unreliable reasoning, raising doubts about fulfilling AGI’s promises with scaling alone.

As the AI landscape evolves, voices like industry investor Marc Andreessen and Microsoft CEO Satya Nadella have increasingly criticised scaling’s limitations. Nadella, at a Microsoft event, highlighted that scaling laws are more like predictable but non-permanent trends, akin to the once-reliable Moore’s Law, which has slowed over time.

Once hailed as the future path, scaling is being re-evaluated in light of these emerging limitations, suggesting a need for a more nuanced approach. To address this, the industry has pivoted towards ‘test-time compute,’ allowing AI systems more time to deliberate on tasks.

While promising, its effectiveness is limited to fields like maths and coding, leaving broader AI functions grappling with fundamental issues. Products like Grok 3 have underscored this problem, as significant computational investments failed to overcome persistent errors, triggering customer dissatisfaction and financial reconsiderations.

Why does it matter?

With the scaling premise failing to meet expectations, the industry faces a potential financial correction and recognises the need for innovative approaches that transcend mere data and power expansion. For substantial AI progress, investors and nations should shift focus from scaling to nurturing bold research and novel solutions that address the complex challenges AI faces. Long-term investments in inventive strategies could pave the way for achieving reliable, intelligent AI systems that reach beyond the allure of simple scaling.

For more information on these topics, visit diplomacy.edu.

OpenAI unveils new image generator in ChatGPT

OpenAI has rolled out an image generator feature within ChatGPT, enabling users to create realistic images with improved accuracy. The new feature, available for all Plus, Pro, Team, and Free users, is powered by GPT-4o, which now offers distortion-free images and more accurate text generation.

OpenAI shared a sample image of a boarding pass, showcasing the advanced capabilities of the new tool.

Previously, image generation was available through DALL-E, but its results often contained errors and were easily identifiable as AI-generated. Now integrated into ChatGPT, the new tool allows users to describe images with specific details such as colours, aspect ratios, and transparent backgrounds.

The update aims to enhance creative freedom while maintaining a higher standard of image quality.

CEO Sam Altman praised the feature as a ‘new high-water mark’ for creative control, although he acknowledged the potential for some users to create offensive content.

OpenAI plans to monitor how users interact with this tool and adjust as needed, especially as the technology moves closer to artificial general intelligence (AGI).

For more information on these topics, visit diplomacy.edu.

Google launches advanced Gemini 2.5 AI

Google has unveiled its new Gemini 2.5 AI models, starting with the experimental Gemini 2.5 Pro version.

Described as ‘thinking models’, these AI systems are designed to demonstrate advanced reasoning abilities, including the capacity to analyse information, make logical conclusions, and handle complex problems with context and nuance.

The models aim to support more intelligent, context-aware AI agents in the future.

The Gemini 2.5 models improve on the Gemini 2.0 Flash Thinking model released in December, offering an enhanced base model and better post-training capabilities.

The Gemini 2.5 Pro model, which has already been rolled out for Gemini Advanced subscribers and is available in Google AI Studio, stands out for its strong reasoning and coding skills. It excels in maths and science benchmarks and can generate fully functional video games from simple prompts.

It is also expected to handle sophisticated tasks, from coding web apps to transforming and editing code. Google’s future plans involve incorporating these ‘thinking’ capabilities into all of its AI models, aiming to enhance their ability to tackle more complex challenges in various fields.

For more information on these topics, visit diplomacy.edu.

China warns US against ‘hegemonic thinking’

China’s foreign ministry has criticised the US for viewing China through a ‘hegemonic mentality’ after Washington labelled it the top military and cyber threat.

Ministry spokesperson Guo Jiakun accused the US of pushing the ‘China threat’ narrative as a means to contain and suppress the country.

The latest exchange highlights ongoing tensions between the two global powers, particularly over security, technology, and military influence. Beijing has consistently rejected US claims regarding cyber espionage and military expansion, arguing that such accusations are politically motivated.

Relations between China and the US have remained strained, with disputes spanning trade, Taiwan, and cybersecurity.

Despite diplomatic efforts to stabilise ties, the two nations continue to challenge each other’s policies and strategic moves on the global stage.

For more information on these topics, visit diplomacy.edu.

Cerebras IPO faces further delays

Cerebras Systems’ plans for a public listing remain in limbo as a national security review by the US government continues to delay the AI chipmaker’s IPO.

The review, conducted by the Committee on Foreign Investment in the United States (CFIUS), is assessing a $335 million investment from Abu Dhabi-based AI firm G42, which has faced scrutiny over its past ties to China.

While executives had hoped for a smoother process under President Trump, delays in filling key political positions have further complicated approval.

Without clarity on G42’s stake, investors remain cautious, making it difficult for Cerebras to move forward. The situation reflects a broader reality for Wall Street, as expectations of a more deal-friendly environment under Trump have yet to materialise.

Analysts suggest that instead of rolling back Biden-era policies, the administration is likely to maintain or even expand scrutiny on foreign investments, particularly those linked to China.

Instead of a setback, Cerebras remains optimistic that the deal will be approved, with plans to proceed with its IPO once clearance is granted.

The company, valued at $8 billion last year, has seen its worth nearly double since then. Meanwhile, G42 has distanced itself from Huawei and secured a national security agreement with the US in an effort to gain regulatory approval.

For more information on these topics, visit diplomacy.edu.

AI physiotherapy service helps UK patients manage back pain

Lower back pain, one of the world’s leading causes of disability, has left hundreds of thousands of people in the UK stuck on long waiting lists for treatment. To address the crisis, the NHS is trialling a new solution: Flok Health, the first AI-powered physiotherapy clinic approved by the Care Quality Commission.

The app offers patients immediate access to personalised treatment plans through pre-recorded videos driven by artificial intelligence.

Created by former Olympic rower Finn Stevenson and tech expert Ric da Silva, Flok aims to treat straightforward cases that don’t require scans or hands-on intervention.

Patients interact with an AI-powered virtual physio, responding to questions that tailor the treatment pathway, with over a billion potential combinations. Unlike generative AI, Flok uses a more controlled system, eliminating the risk of fabricated medical advice.

The service has already launched in Scotland and is expanding across England, with ambitions to cover half the UK within a year. Flok is also adding treatment for conditions like hip and knee osteoarthritis, and women’s pelvic health.

While promising, the system depends on patients correctly following instructions, as the AI cannot monitor physical movements. Real physiotherapists are available to answer questions, but they do not provide live feedback during exercises.

Though effective for some, not all users find AI a perfect fit. Some, like the article’s author, prefer the hands-on guidance and posture corrections of human therapists.

Experts agree AI has potential to make healthcare more accessible and efficient, but caution that these tools must be rigorously evaluated, continuously monitored, and designed to support – not replace – clinical care.

For more information on these topics, visit diplomacy.edu.

OpenAI improves ChatGPT voice to stop unwanted interruptions

OpenAI has rolled out improvements to its ChatGPT voice assistant in an effort to make interactions more natural and less frustrating.

The latest update to Advanced Voice Mode allows users to pause mid-sentence without being cut off—a common issue with AI voice tools that often interrupt users during brief silences or deep breaths.

Free users of ChatGPT now benefit from this smoother conversational experience, while paying subscribers—including those on the Plus, Teams, Edu, Business, and Pro plans—also enjoy a more refined voice assistant.

The AI now speaks with a more engaging and creative tone, delivering answers that are clearer and more direct.

OpenAI’s goal is to create a more personable assistant that feels comfortable to speak with. According to the company, the changes make the AI more enjoyable to use and better equipped for real-time conversation.

These upgrades come as competition in the AI voice market heats up. Startups like Sesame, backed by major investors, are gaining attention with lifelike AI voices, while tech giants like Amazon are preparing to release enhanced voice assistants powered by large language models.

For more information on these topics, visit diplomacy.edu.