Digital business models

UK to benefit from Google’s £5 billion AI plan

Google has unveiled plans to invest £5 billion (around $6.8 billion) in the UK’s AI economy over the next two years.

An announcement comes just hours before US President Donald Trump’s official visit to the country, during which economic agreements worth more than $10 billion are expected.

The investment will include establishing a new AI data centre in Waltham Cross, Hertfordshire, designed to meet growing demand for services like Google Cloud.

Alongside the facility, funds will be channelled into research and development, capital expenditure, engineering, and DeepMind’s work applying AI to science and healthcare. The project is expected to generate 8,250 annual jobs for British companies.

Google also revealed a partnership with Shell to support grid stability and contribute to the UK’s energy transition. The move highlights the economic and environmental stakes tied to AI expansion, as the UK positions itself as a hub for advanced digital technologies.

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

Alphabet hits US$3 trillion valuation on AI optimism

Google’s parent company, Alphabet, has become the fourth company to reach a market value above US$3 trillion, fuelled by investor confidence in AI and relief over a favourable antitrust ruling.

Its shares jumped 4.3 percent to close at US$251.76 on 15 September, lifting the firm’s valuation to US$3.05 trillion.

The rally has added about US$1.2 trillion in value since April, with Alphabet joining Apple and Microsoft in the elite group while Nvidia remains the most valuable at US$4.25 trillion.

Investor optimism has been strengthened by expectations of a US Federal Reserve rate cut and surging demand for AI-related products.

Alphabet’s communications services unit has risen more than 26 percent in 2025, outpacing all other major sectors. Strong growth in its cloud division, new AI investments, and the Gemini model have reinforced the company’s momentum.

Analysts note that, while search continues to dominate revenues, Alphabet is increasingly viewed as a diversified technology powerhouse with YouTube, Waymo, and AI research at its core.

By avoiding a forced breakup of Chrome and Android, the antitrust ruling also removed a significant threat to its business model.

Market strategists suggest Alphabet now combines the strength of its legacy platforms with the credibility of emerging technologies, securing its place at the centre of Wall Street’s AI-driven rally.

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

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.

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

Generative AI enables rapid phishing attacks on older users

A recent study has shown that AI chatbots can generate compelling phishing emails for older people. Researchers tested six major chatbots, including Grok, ChatGPT, Claude, Meta AI, DeepSeek, and Google’s Gemini, by asking them to draft scam emails posing as charitable organisations.

Of 108 senior volunteers, roughly 11% clicked on the AI-written links, highlighting the ease with which cybercriminals could exploit such tools.

Some chatbots initially declined harmful requests, but minor adjustments, such as stating the task was for research purposes, or circumvented these safeguards.

Grok, in particular, produced messages urging recipients to ‘click now’ and join a fictitious charity, demonstrating how generative AI can amplify the persuasiveness of scams. Researchers warn that criminals could use AI to conduct large-scale phishing campaigns at minimal cost.

Phishing remains the most common cybercrime in the US, according to the FBI, with seniors disproportionately affected. Last year, Americans over 60 lost nearly $5 billion to phishing attacks, an increase driven partly by generative AI.

The study underscores the urgent need for awareness and protection measures among vulnerable populations.

Experts note that AI’s ability to generate varied scam messages rapidly poses a new challenge for cybersecurity, as it allows fraudsters to scale operations quickly while targeting specific demographics, including older people.

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

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.

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

Telecom industry outlines vision for secure 6G

Telecom experts say 6G must be secure by design as planning for the next generation of mobile networks accelerates.

Industry leaders warn that 6G will vastly expand the attack surface, with autonomous vehicles, drones, industrial robots and AR systems all reliant on ultra-low latency connections. AI will be embedded at every layer, creating opportunities for optimisation but also new risks such as model poisoning.

Quantum threats are also on the horizon, with adversaries potentially able to decrypt sensitive data. Quantum-resistant cryptography is expected to be a cornerstone of 6G defences.

With standards due by 2029, experts stress cooperation among regulators, equipment vendors and operators. Security, they argue, must be as fundamental to 6G as speed and sustainability.

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

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.

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

Lumex chips bring advanced AI to mobile devices

Arm Holdings has unveiled Lumex, its next-generation chip designs built to bring advanced AI performance directly to mobile devices.

The new designs range from highly energy-efficient chips for wearables to high-performance versions capable of running large AI models on smartphones without cloud support.

Lumex forms part of Arm’s Compute Subsystems business, offering handset makers pre-integrated designs, while also strengthening Arm’s broader strategy to expand smartphone and data centre revenues.

The chips are tailored for 3-nanometre manufacturing processes provided by suppliers such as TSMC, whose technology is also used in Apple’s latest iPhone chips. Arm has indicated further investment in its own chip development to capitalise on demand.

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

US and China reach framework deal on TikTok

The United States and China have reached a tentative ‘framework’ deal on the future of TikTok’s American operations, US Treasury Secretary Scott Bessent confirmed during trade talks in Madrid. The agreement, which still requires the approval of Presidents Donald Trump and Xi Jinping, is aimed at resolving a looming deadline that could see the video-sharing app banned in the US unless its Chinese owner ByteDance sells its American division.

US officials say the framework addresses national security concerns by paving the way for US ownership of TikTok’s operations, while China insists any final deal must not undermine its companies’ interests. The Biden administration has long argued that the app’s access to US user data poses significant risks, while ByteDance maintains its American arm operates independently and respects user privacy.

The law mandating a sale or ban, upheld by the Supreme Court earlier this year, is due to take effect on 17 September. Although the framework marks progress, key details remain unresolved, particularly over whether TikTok’s recommendation algorithm and user data will be fully transferred, stored, and protected in the US.

Experts warn that unless strict safeguards are included, the deal may solve ownership issues without closing potential ‘backdoors’ for Beijing. Concerns also remain over how much influence China retains, with negotiators linking TikTok’s fate to wider tariff discussions between the two powers.

If fully implemented, the agreement could represent a breakthrough in both trade relations and tech governance. But with ByteDance among China’s most powerful AI firms, the stakes go far beyond social media, touching on questions of global competition, national security, and digital sovereignty.

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

Quantum breakthroughs could threaten Bitcoin in the 2030s

The rise of quantum computing is sparking fresh concerns over the long-term security of Bitcoin. Unlike classical systems, quantum machines could eventually break the cryptography protecting digital assets.

Experts warn that Shor’s algorithm, once run on a sufficiently powerful quantum computer, could recover private keys from public ones in hours, leaving exposed funds vulnerable. Analysts see the mid-to-late 2030s as the key period for cryptographically relevant breakthroughs.

ChatGPT-5’s probability model indicates less than a 5% chance of Bitcoin being cracked before 2030, but risk rises to 45–60% between 2035 and 2039, and nearly certainty by 2050. Sudden progress in large-scale, fault-tolerant qubits or government directives could accelerate the timeline.

Mitigation strategies include avoiding key reuse, auditing exposed addresses, and gradually shifting to post-quantum or hybrid cryptographic solutions. Experts suggest that critical migrations should be completed by the mid-2030s to secure the Bitcoin network against future quantum threats.

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