Digital business models

DeepSeek claims R1 model matches OpenAI

Chinese AI start-up DeepSeek has announced a major update to its R1 reasoning model, claiming it now performs on par with leading systems from OpenAI and Google.

The R1-0528 version, released following the model’s initial launch in January, reportedly surpasses Alibaba’s Qwen3, which debuted only weeks earlier in April.

According to DeepSeek, the upgrade significantly enhances reasoning, coding, and creative writing while cutting hallucination rates by half.

These improvements stem largely from greater computational resources applied after the training phase, allowing the model to outperform domestic rivals in benchmark tests involving maths, logic, and programming.

Unlike many Western competitors, DeepSeek takes an open-source approach. The company recently shared eight GitHub projects detailing methods to optimise computing, communication, and storage efficiency during training.

Its transparency and resource-efficient design have attracted attention, especially since its smaller distilled model rivals Alibaba’s Qwen3-235B while being nearly 30 times lighter.

Major Chinese tech firms, including Tencent, Baidu and ByteDance, plan to integrate R1-0528 into their cloud services for enterprise clients. DeepSeek’s progress signals China’s continued push into globally competitive AI, driven by a young team determined to offer high performance with fewer resources

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NSO asks court to overturn WhatsApp verdict

Israeli spyware company NSO Group has requested a new trial after a US jury ordered it to pay $168 million in damages to WhatsApp.

The company, which has faced mounting legal and financial troubles, filed a motion in a California federal court last week seeking to reduce the verdict or secure a retrial.

The May verdict awarded WhatsApp $444,719 in compensatory damages and $167.25 million in punitive damages. Jurors found that NSO exploited vulnerabilities in the encrypted platform and sold the exploit to clients who allegedly used it to target journalists, activists and political rivals.

WhatsApp, owned by Meta, filed the lawsuit in 2019.

NSO claims the punitive award is unconstitutional, arguing it is over 376 times greater than the compensatory damages and far exceeds the US Supreme Court’s general guidance of a 4:1 ratio.

The firm also said it cannot afford the penalty, citing losses of $9 million in 2023 and $12 million in 2024. Its CEO testified that the company is ‘struggling to keep our heads above water’.

WhatsApp, responding to TechCrunch in a statement, said NSO was once again trying to evade accountability. The company vowed to continue its legal campaign, including efforts to secure a permanent injunction that would prevent NSO from ever targeting WhatsApp or its users again.

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NVIDIA unveils world’s largest quantum research supercomputer

NVIDIA has launched the world’s largest research supercomputer dedicated to quantum computing, named ABCI-Q, housed at Japan’s new Global Research and Development Centre for Business by Quantum-AI Technology (G-QuAT).

Delivered in collaboration with Japan’s National Institute of Advanced Industrial Science and Technology (AIST), ABCI-Q combines over 2,000 NVIDIA H100 GPUs with multiple quantum processors to enable advanced quantum-AI workloads.

ABCI-Q integrates seamlessly with CUDA-Q, NVIDIA’s open-source hybrid computing platform, and supports superconducting, neutral atom, and photonic qubit technologies.

The platform is designed to tackle quantum computing challenges such as error correction and application development, potentially transforming industries like healthcare, finance and energy.

Leaders from NVIDIA and AIST believe the facility will serve as a testing ground for accelerating real-world quantum computing applications. The partnership aims to bridge the gap between experimental hardware and scalable, practical systems capable of solving complex global problems.

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Google to appeal US ruling in search monopoly case

Google has announced plans to appeal a ruling that found it guilty of anti-competitive practices in the online search market, as the tech giant faces mounting pressure from US regulators to restructure its business.

The company said Saturday it ‘strongly believes the Court’s original decision was wrong’ and will challenge the ruling on appeal.

However, this follows a hearing on Friday in which the US Department of Justice proposed sweeping remedies that could force Google to divest from its Chrome browser and end exclusive agreements with smartphone manufacturers that pre-install Google Search by default.

The government also wants the company to share the data it uses to generate search results on Chrome, a move Google criticised as giving Washington the power to determine who receives access to user data.

The Justice Department’s proposals are part of a broader effort to curb what it sees as Google’s abuse of its dominant position in the search market, which it argues has stifled competition and harmed consumers.

But Google has pushed back, saying the remedies would benefit wealthy competitors like Microsoft’s Bing rather than improve users outcome. Instead, the company has suggested more limited actions, such as letting phone makers pre-install its Play Store without requiring Chrome or Google Search.

The judge’s final decision on penalties is expected by August, marking the end of one of the most significant antitrust cases against a major tech firm in over a decade.

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Colt, Honeywell and Nokia to trial quantum cryptography in space

Colt Technology Services, Honeywell, and Nokia have joined forces to trial quantum key distribution (QKD) via satellites to develop quantum-safe networks. The trial builds on a previous Colt pilot focused on terrestrial quantum-secure networks.

The collaboration aims to tackle the looming cybersecurity risks of quantum computing, which threatens to break current encryption methods. The project seeks to deliver secure global communication beyond the current 100km terrestrial limit by trialling space-based and subsea QKD.

Low-Earth orbit satellites will explore QKD over ultra-long distances, including transatlantic spans. The initiative is designed to support sectors that handle sensitive data, such as finance, healthcare, and government, by offering encryption solutions resistant to quantum threats.

Leaders from all three companies emphasised the urgency of developing safeguards to protect against future threats. A joint white paper, The Journey to Quantum-Safe Networking, has been released to outline the risks and technical roadmap for this new frontier in secure communications.

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AI data centre boom sparks incentives and pushback

The explosive growth of AI and cloud computing has ignited a data centre building boom across the United States, with states offering massive financial incentives to attract investment.

However, electricity, and water is beginning to meet resistance from lawmakers and local communities concerned about long-term costs and environmental strain.

Dozens of states have rolled out tax exemptions, permitting fast-tracks, and deregulated energy options to lure hyperscale data centres—massive facilities consuming hundreds of megawatts of power.

Kansas, Kentucky, and Arkansas have expanded tax breaks, while Pennsylvania seeks to streamline permitting in hopes of capturing a share of the billions flowing into data infrastructure.

Other states, including West Virginia and Utah, have passed laws enabling data centres to bypass grid operators and buy power directly.

Supporters say data centres deliver high upfront spending and create thousands of construction jobs. However, critics argue the facilities offer few permanent positions, strain public utilities, and place an unfair burden on ratepayers to fund new power plants.

In South Carolina, lawmakers clashed over whether customers should be forced to underwrite infrastructure primarily serving a single tech company.

Meanwhile, some states are beginning to push back. Oregon and Georgia are exploring laws requiring data centres to pay the full cost of the electricity infrastructure they consume.

In Texas, where winter blackouts in 2021 exposed grid fragility, lawmakers are cautiously debating balancing power supply with growing AI and cloud demands amid fears the state could lose investment due to regulatory uncertainty.

As the demand for AI soars, so does the pressure to weigh economic opportunity against sustainability, transparency, and fairness in energy use. The data centre boom may be here to stay—but how states handle it could define their long-term digital and environmental futures.

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Diplo joins Brazil’s Internet Forum and celebrates CGI.br’s 30 years

Diplo actively participated in Brazil’s Internet Forum (FIB), held from May 26 to 30 and hosted by the Brazilian Internet Steering Committee (CGI.br). The event brought together key stakeholders from across sectors to discuss pressing issues in digital governance.

Representing Diplo, Marilia Maciel contributed to critical discussions on state roles and multistakeholder collaboration in managing cloud infrastructures and defending digital sovereignty. She also offered insights during the main session on setting principles for regulating digital platforms.

Maciel’s contributions were recognised with the ‘Destaques em Governança da Internet no Brasil’ award, one of the most respected acknowledgments of excellence in internet governance in the country. The award highlights individuals and organisations that have made significant advances in promoting inclusive and effective digital policy in Brazil.

The event also marked a major milestone for CGI.br—its 30th anniversary. Diplo joined in celebrating the committee’s three decades of leadership in internet governance. CGI.br’s pioneering approach to multistakeholder governance has served not only as a national model but as a global inspiration for collaborative digital policy-making.

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Shoppers can now let AI find and buy deals

Tech giants are pushing deeper into e-commerce with AI-powered digital aides that can understand shoppers’ tastes, try on clothes virtually, hunt for bargains, and even place orders independently.

The so-called ‘AI agent’ mark a new phase in retail, combining personalisation with automation to reshape how people shop online.

Google recently introduced a suite of tools under its new AI Mode, allowing users to upload a photo and preview how clothing would look on their own body. The AI adjusts sizes and fabric drape, enhancing realism.

Shoppers can also set their price and let the AI search for the best deal, alerting them when it’s found and offering to complete the purchase using Google’s payment platform.

OpenAI, Perplexity AI, and Amazon have also added shopping features to their platforms, while Walmart and other retailers are working to ensure their products remain visible to AI shoppers.

Payment giants Visa and Mastercard have upgraded their systems to allow AI agents to process transactions autonomously, cementing the role of digital agents in the online shopping journey.

Experts say this growing ‘agent economy’ offers powerful convenience but raises questions about consumer privacy, trust, and control.

While AI shoppers are unlikely to disrupt e-commerce overnight, analysts note that companies like Google and Meta are particularly well-positioned due to their vast user data and AI leadership.

The next evolution of shopping may not depend on what consumers choose, but on whether they trust machines to choose for them.

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Panama City considers Bitcoin for canal payments

Panama City’s Mayor Mayer Mizrachi has floated the idea of letting cargo ships pay in Bitcoin. The proposal would allow faster passage through the Panama Canal, one of the world’s most vital trade routes.

Speaking at the Bitcoin 2025 conference in Las Vegas, he suggested offering perks to vessels choosing Bitcoin as a payment method. The canal processes nearly 10,000 ships a year and accounts for around 5% of global maritime trade.

Mizrachi’s proposal comes as part of his broader effort to integrate Bitcoin into public infrastructure. Panama City began accepting crypto for municipal payments in April, instantly converting transactions into dollars.

The mayor is also exploring the creation of a Bitcoin reserve and has sought inspiration from El Salvador’s pro-Bitcoin policies.

The idea of crypto payments for canal fees emerges amid rising international interest in the waterway. Mizrachi, however, urged lawmakers not to rush into restrictive crypto regulation, advocating instead for a hands-off approach.

While the Bitcoin-for-passage concept remains in its early stages, Mizrachi claims crypto use in Panama is more widespread than it appears, with over $5 billion in annual transactions.

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Paris Saint-Germain adds Bitcoin to treasury

Paris Saint-Germain (PSG) has revealed it holds Bitcoin in its treasury, becoming the first sports club to make such a move public. The announcement was made during the Bitcoin 2025 conference in Las Vegas by Pär Helgosson, head of PSG Labs.

He called it part of a ‘new generation trend,’ reflecting the club’s efforts to align with future-facing innovations.

The club began acquiring Bitcoin last year, converting part of its fiat reserves into the digital asset. Helgosson highlighted the relevance of the decision by pointing out that 80% of PSG’s global fanbase is under the age of 34.

With over 550 million fans worldwide, the move positions PSG as a leader among sports organisations adapting to the digital economy.

Football remains the most active sport for crypto sponsorships, accounting for 43% of all crypto deals in the 2024/25 season, according to SportQuake.

The trend has seen a 64% annual increase, driven largely by European leagues and global campaigns amid political uncertainty in the US.

PSG joins a growing number of institutions adding Bitcoin to their balance sheets. Analysts credit both exchange-traded funds (ETFs) and political momentum, particularly under President Trump’s administration, for boosting corporate confidence in Bitcoin as a strategic asset.

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