Digital business models Archives | Page 320 of 568

OpenAI and Shopify explore product sales via ChatGPT

OpenAI is preparing to take a commission from product sales made directly through ChatGPT, signalling a significant shift in its business model. The move aims to monetise free users by embedding e-commerce checkout within the chatbot.

Currently, ChatGPT provides product links that redirect users to external sites. In April, OpenAI partnered with Shopify to support this feature. Sources say the next step is enabling purchases without leaving the platform, with merchants paying OpenAI a fee per transaction.

Until now, OpenAI has earned revenue mainly from ChatGPT Plus subscriptions and enterprise deals. Despite a $300 billion valuation, the company remains loss-making and seeks new commercial avenues tied to its conversational AI tools.

E-commerce integration would also challenge Google’s grip on product discovery and paid search, as more users turn to chatbots for recommendations.

Early prototypes have been shown to brands, and financial terms are under discussion. Shopify, which powers checkout on platforms like TikTok, may also provide the backend infrastructure for ChatGPT.

Product suggestions in ChatGPT are generated based on query relevance and user-specific context, including budgets and saved preferences. With memory upgrades, the chatbot can personalise results more effectively over time.

Currently, clicking on a product shows a list of sellers based on third-party data. Rankings rely mainly on metadata rather than price or delivery speed, though this is expected to evolve.

Marketers are already experimenting with ‘AIO’ — AI optimisation — to boost visibility in AI-generated product listings, similar to SEO for search engines.

An advertising agency executive said this shift could disrupt paid search and traditional ad models. Concerns are growing around how AI handles preferences and the fairness of its recommendations.

OpenAI has previously said it had ‘no active plans to pursue advertising’. However, CFO Sarah Friar recently confirmed that the company is open to ads in the future, using a selective approach.

CEO Sam Altman said OpenAI would not accept payments for preferential placement, but may charge small affiliate fees on purchases made through ChatGPT.

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

South Korea’s new Science Minister pledges AI-led national transformation

South Korea’s new Science and ICT Minister, Bae Kyung-hoon, has pledged to turn the nation into one of the world’s top three AI powerhouses.

Instead of following outdated methods, Bae outlined a bold national strategy centred on AI, science and technology, aiming to raise Korea’s potential growth rate to 3 per cent and secure a global economic leadership position.

Bae, a leading AI expert and former president of LG AI Research, officially assumed office on Thursday.

Drawing from experience developing hyperscale AI models like LG’s Exaone, he emphasised the need to build a unique competitive advantage rooted in AI transformation, talent development and technological innovation.

Rather than focusing only on industrial growth, Bae’s policy agenda targets a broad AI ecosystem, revitalised research and development, world-class talent nurturing, and addressing issues affecting daily life.

His plans include establishing AI-centred universities, enhancing digital infrastructure, promoting AI semiconductors, restoring grassroots research funding, and expanding consumer rights in telecommunications.

With these strategies, Bae aims to make AI accessible to all citizens instead of limiting it to large corporations or research institutes. His vision is for South Korea to lead in AI development while supporting social equity, cybersecurity, and nationwide innovation.

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

EU confirms AI Act rollout and releases GPAI Code of Practice

The European Commission has confirmed it will move forward with the EU AI Act exactly as scheduled, instead of granting delays requested by tech giants and businesses.

On 10 July 2025, it published the final General-Purpose AI (GPAI) Code of Practice alongside FAQs to guide organisations aiming to comply with the new law.

Rather than opting for a more flexible timetable, the Commission is standing firm on its regulatory goals. The GPAI Code of Practice, now in its final form, sets out voluntary but strongly recommended steps for companies that want reduced administrative burdens and clearer legal certainty under the AI Act.

The document covers transparency, copyright, and safety standards for advanced AI models, including a model documentation form for providers.

Key dates have already been set. From 2 August 2025, rules covering notifications, governance, and penalties will come into force. By February 2026, official guidelines on classifying high-risk AI systems are expected.

The remaining parts of the legislation will take effect by August 2026, instead of being postponed further.

With the publication of the GPAI Code of Practice, the EU takes another step towards building a unified ethical framework for AI development and deployment across Europe, focusing on transparency, accountability, and respect for fundamental rights.

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

EU sends warning to crypto platforms over AML risks

The EU’s Anti-Money Laundering Authority (AMLA) has warned that fragmented oversight and inconsistent rules pose significant risks to the bloc’s financial integrity. Chair Bruna Szego urged regulators and crypto firms to prepare for stricter anti-money laundering rules.

The Frankfurt-based agency, now operational, will oversee the enforcement of new EU-wide anti-money laundering regulations. Szego stressed the importance of identifying the beneficial owners of crypto platforms and ensuring they are not linked to criminal networks.

Concerns over inconsistent controls across EU countries and diverging interpretations of MiCA requirements have grown. Crypto firms must be prepared to meet the different standards across all jurisdictions they plan to operate.

From July 2027, crypto platforms will be required to block anonymous wallets and provide authorities with complete, real-time access to account data.

Major firms like Binance have already faced regulatory penalties, with ongoing investigations highlighting the rising pressure on the sector.

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

Fairshake ramps up crypto lobbying ahead of 2026 races

Fairshake, a crypto-backed political action committee (PAC), now holds $141 million as it ramps up influence efforts ahead of upcoming US elections. With $52 million raised in the first half of 2025, PAC has surpassed its spending from the last election cycle.

Formed in 2023, Fairshake has already spent over $2 million in special elections this year through its affiliates. It previously funded pro-crypto candidates during the 2024 US elections and is now targeting congressional races through 2026.

Industry giants such as Ripple, Kraken, and Gemini founders have also contributed to aligned candidates, though Fairshake itself hasn’t directly supported Trump’s campaign.

The group’s rising influence coincides with growing Republican support for crypto legislation. The current GOP majority in both chambers includes over 270 lawmakers viewed as crypto-friendly.

Fairshake-backed candidates recently secured key House seats in Florida, aiding the party’s push for new laws on stablecoins and market structure.

Looking ahead, Fairshake plans to use its record-breaking war chest to shape the legislative landscape on digital assets. With the 2026 midterms on the horizon, crypto lobbying may play a critical role in how the US regulates digital currencies.

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

Top countries that accept crypto for golden visas

Countries including Vanuatu, Portugal, El Salvador, Dominica and Saint Lucia now offer legal residency or citizenship in exchange for crypto-funded investments. Bitcoin, Ether and stablecoins are increasingly accepted—either directly or via licensed agents—giving digital asset holders new options for global mobility.

Vanuatu offers one of the fastest second passports, processed in under two months. Applicants donate at least $130,000, and crypto can be used through licensed intermediaries

Caribbean nations Dominica and Saint Lucia also allow crypto to be converted into fiat by agents, with donations starting from $200,000. Both programmes are remote and include family members.

Portugal’s golden visa now favours investment funds over property, with some allowing crypto-converted fiat and exposure to blockchain assets. Applicants need only minimal stays, and the path to citizenship may extend from five to ten years. Tax conditions remain favourable, especially for long-term crypto gains.

El Salvador leads with its Freedom Visa, accepting a direct $1-million investment in Bitcoin or USDT for citizenship. The programme, limited to 1,000 applicants yearly, is fully crypto-native and offers fast-track approval.

With rising interest in crypto migration, more governments may soon follow suit.

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

Meta faces fresh EU backlash over Digital Markets Act non-compliance

Meta is again under EU scrutiny after failing to fully comply with the bloc’s Digital Markets Act (DMA), despite a €200 million fine earlier this year.

The European Commission says Meta’s current ‘pay or consent’ model still falls short and could trigger further penalties. A formal warning is expected, with recurring fines likely if the company does not adjust its approach.

The DMA imposes strict rules on major tech platforms to reduce market dominance and protect digital fairness. While Meta claims its model meets legal standards, the Commission says progress has been minimal.

Over the past year, Meta has faced nearly €1 billion in EU fines, including €798 million for linking Facebook Marketplace to its central platform. The new case adds to years of tension over data practices and user consent.

The ‘pay or consent’ model offers users a choice between paying for privacy or accepting targeted ads. Regulators argue this does not meet the threshold for genuine consent and mirrors Meta’s past GDPR tactics.

Privacy advocates have long criticised Meta’s approach, saying users are left with no meaningful alternatives. Internal documents show Meta lobbied against privacy reforms and warned governments about reduced investment.

The Commission now holds greater power under the DMA than it did with GDPR, allowing for faster, centralised enforcement and fines of up to 10% of global turnover.

Apple has already been fined €500 million, and Google is also under investigation. The EU’s rapid action signals a stricter stance on platform accountability. The message for Meta and other tech giants is clear: partial compliance is no longer enough to avoid serious regulatory consequences.

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

Broadcom challenges Nvidia with Tomahawk Ultra AI networking chip

Broadcom has introduced a new networking chip designed to boost AI data centre performance, positioning itself against Nvidia in the AI hardware race.

Called Tomahawk Ultra, the chip helps link hundreds of processors within close range, ensuring fast communication vital for large AI models.

Instead of using Nvidia’s proprietary NVLink system, Broadcom’s Tomahawk Ultra operates on an accelerated version of Ethernet and connects up to four times more chips within a server rack.

The chip acts as a traffic controller, enabling what the industry refers to as ‘scale-up’ computing — where AI models tap into combined computing power from tightly grouped chips.

According to Broadcom senior vice president Ram Velaga, it took engineers around three years to design the Tomahawk Ultra, which was originally aimed at high-performance computing but adapted for AI workloads as demand surged.

Taiwan Semiconductor Manufacturing Company (TSMC) is producing the processors using its five-nanometre process, and the chips are already shipping to customers.

Rather than requiring major hardware overhauls, the Tomahawk Ultra offers a scalable, Ethernet-based alternative for AI firms looking to build faster, more flexible data centres.

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

UK customer‑experience leaders champion human‑centred AI

Marketing Week’s CX50 2025 accolades spotlight ten individuals who are redefining customer experience by putting people before pixels.

These leaders are harnessing AI thoughtfully, augmenting frontline staff with tools that personalise service without eroding the human touch.

Their work spans retail, hospitality, financial services and the public sector, showcasing how AI-driven systems can streamline operations while nurturing empathetic engagement.

Strategies include using automation for routine tasks and intelligent routing, freeing teams to focus on empathy, insight and dialogue.

Partners Cognizant, Google Cloud and Salesforce helped assemble the CX50 list. The initiative underscores a growing movement: top-performing brands blend algorithmic precision with human warmth to build trust and loyalty in increasingly digital markets.

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

South Korean firm unveils faster AI data centre architecture with CXL-over-Xlink

South Korean company Panmnesia has introduced a new architecture for AI data centres aimed at improving speed and efficiency.

Instead of using only PCIe or RDMA-based systems, its CXL-over-Xlink approach combines Compute Express Link (CXL) with fast accelerator links such as UALink and NVLink.

The company claims this design can deliver up to 5.3 times faster AI training and reduce inference latency sixfold. By allowing CPUs and GPUs to access large shared memory pools via the CXL fabric, AI workloads are no longer restricted by the fixed memory limits inside each GPU.

It will enable data centres to scale compute and memory independently, adapting to changing workload demands without hardware overprovisioning.

Panmnesia’s system also reduces communication overhead using accelerator-optimised links for CXL traffic, helping maintain high throughput with sub-100ns latency.

The architecture incorporates a hierarchical memory model blending local high-bandwidth memory with pooled CXL memory, alongside scalable CXL 3.1 switches that connect hundreds of devices efficiently without bottlenecks.

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