Digital business models

Metaplanet’s Bitcoin stash exceeds $700 million

Japanese investment firm Metaplanet now holds 6,796 BTC, worth approximately $707 million, surpassing El Salvador in Bitcoin holdings. On 12 May, the firm added 1,241 BTC, investing $129 million at current prices.

Metaplanet, which began its Bitcoin strategy in April 2024, has aggressively increased its holdings, with purchases of over 37,000 BTC in recent months. It is now the largest Bitcoin holder in Asia and the tenth largest globally.

Despite the massive acquisitions, the firm’s Bitcoin yield has surged, with a 95.6% yield in Q1 2025. El Salvador, holding 6,714 BTC, remains a significant player but is now outpaced by the Japanese firm.

Meanwhile, Michael Saylor hinted at another Bitcoin purchase for Strategy, which holds 555,450 BTC, valued at $57.8 billion.

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

Scale AI expands into Saudi Arabia and UAE

Scale AI, a San Francisco-based startup backed by Amazon, plans to open a new office in Riyadh by the end of the year as part of its broader Middle East expansion.

The company also intends to establish a presence in the United Arab Emirates, although it has yet to confirm the timeline for that move.

Trevor Thompson, the company’s global managing director, said the Gulf is among the fastest-growing regions for AI adoption outside of the US and China.

Gulf states like Saudi Arabia have been investing heavily in tech startups, data centres and computing infrastructure, urging companies to set up local operations and create regional jobs. Salesforce, for instance, has already begun hiring for a $500 million investment in the kingdom.

Founded in 2016, Scale AI provides data-labelling services essential for training AI products, relying on a vast network of contract workers. Its clients include OpenAI and Microsoft.

The company hit a $13.8 billion valuation last year after a $1 billion funding round backed by Amazon, Meta and others.

In 2024, it generated about $870 million in revenue and is reportedly in talks for a deal that could nearly double its value.

Scale AI is also strengthening its regional ties. In February, it signed a five-year agreement with Qatar to enhance public services, followed by a partnership with Abu Dhabi-based Inception in March.

The news coincides with former President Donald Trump’s upcoming visit to Saudi Arabia, where his team is considering lifting export controls on advanced AI chips, potentially boosting the Gulf’s access to cutting-edge technology.

Notably, Scale AI’s former managing director, Michael Kratsios, now advises Trump on tech matters.

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

Vitalik Buterin proposes simplifying Ethereum to boost developer adoption

Vitalik Buterin, co-founder of Ethereum, plans to simplify the blockchain to boost developer adoption and enhance scalability. Buterin aims to simplify Ethereum infrastructure, making it more accessible and reducing the cost.

In his proposal, Buterin draws comparisons to Bitcoin. He argues that simplifying Ethereum could promote growth and make the platform more user-friendly, similar to Bitcoin’s model.

Buterin’s proposal includes setting a maximum code line target to streamline Ethereum’s development. He believes that by simplifying the codebase, Ethereum can attract more developers and enhance overall performance.

His long-term goal is for Ethereum to rival Bitcoin within five years, despite the current low ETH/BTC ratio. Despite criticism of Ethereum’s Proof-of-Stake shift for centralisation, Buterin sees simplification as a move towards greater decentralisation.

The price of Ethereum has been steadily rising, supported by strong technical indicators. Despite institutional caution towards altcoins, Ethereum continues to lead in the tokenisation of real-world assets.

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

Microsoft and OpenAI rework billion dollar deal

OpenAI and Microsoft are renegotiating the terms of their multibillion-dollar partnership in a move designed to allow the ChatGPT maker to pursue a future public listing, while ensuring Microsoft retains access to its most advanced AI technology.

According to the Financial Times, the talks are centred around adjusting Microsoft’s equity stake in OpenAI’s for-profit arm.

The software giant has invested over US$13 billion in OpenAI and is reportedly prepared to reduce its stake in exchange for extended access to AI developments beyond the current 2030 agreement.

The revisions also include changes to a broader agreement first established in 2019 when Microsoft committed US$1 billion to the partnership.

The restructuring reflects OpenAI’s shift in strategy as it prepares for potential independence from its largest investor. Recent reports suggest the company plans to share a smaller portion of its future revenue with Microsoft, instead of maintaining current terms.

Microsoft has declined to comment on the ongoing negotiations, and OpenAI has yet to respond.

The talks follow Microsoft’s separate US$500 billion joint venture with Oracle and SoftBank to build AI data centres in the US, further signalling the strategic value of securing long-term access to cutting-edge models.

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

€34 million in crypto seized from eXch for facilitating money laundering

German authorities have seized cryptocurrency and server infrastructure worth €34 million ($37.4 million) from the now-defunct eXch crypto exchange. Prosecutors allege the platform operated without proper licences, facilitating money laundering for North Korean hackers involved in the Bybit hack.

The exchange reportedly processed transactions without implementing necessary anti-money laundering controls, attracting criminals seeking to launder stolen funds.

Authorities also claim that eXch was involved in laundering millions from multiple high-profile crypto thefts, including the $1.4 billion Bybit hack. The exchange’s services were available on both the clearnet and the darknet, and advertised on underground criminal platforms.

In addition to cryptocurrency holdings, the confiscated assets include server hardware and other digital infrastructure linked to the exchange’s operations.

While eXch announced its closure last month, blockchain analytics firm TRM Labs suggested that it continued operating. The exchange’s involvement in illicit activities, including refusal to block addresses linked to phishing schemes, has sparked further scrutiny.

As Germany prepares to discuss North Korean crypto hacks at the G7 summit, these latest developments are likely to be high on the agenda.

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

Honor phones get early access to Google’s AI video tool

Google’s latest AI image-to-video tool has made its debut on new Honor smartphones, ahead of its wider rollout to Gemini users.

The feature, powered by Google’s Veo 2 model, allows users to transform still images into short five-second videos directly from the Gallery app on Honor’s upcoming 400 and 400 Pro devices, launching on 22 May. The technology offers quick generation, usually taking just a minute or two per video.

Designed with simplicity in mind, the tool does not allow text prompts, leaving the AI to interpret each image as it sees fit. Results can be mixed: straightforward subjects such as pets or portraits often yield smooth, lifelike motion, but the tool struggles with complex visuals.

Some results have been amusing or surreal — a pigeon flying out of Van Gogh’s eye, for instance — suggesting that the AI’s creative choices still lack refinement.

Owners of the Honor 400 series will be able to try the feature for free for two months, with a limit of ten videos per day. After the trial, a Google subscription will likely be required, though pricing and terms have not yet been announced.

While video generation is already available to Google’s Gemini Advanced subscribers using text input, image-based generation remains limited to selected users under Google Cloud’s enterprise offerings, where it’s priced at 50 cents per second.

With this early release, Honor users gain rare first-hand access to an experimental AI feature that remains out of reach for most.

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

Microsoft expands cloud push across Europe

Microsoft has unveiled a new set of commitments aimed at strengthening its digital presence across Europe, pledging to expand cloud and AI infrastructure while supporting the region’s economic competitiveness.

Announced by Microsoft President Brad Smith in Brussels, the ‘European Digital Commitments’ include a promise to increase European data centre capacity by 40% within two years, bringing the total to over 200 across 16 countries.

Smith explained that Microsoft’s goal is to provide technology that helps individuals and organisations succeed, rather than simply expanding its reach. He highlighted AI as essential to modern economies, describing it as a driving force behind what he called the ‘AI economy.’

Alongside job creation, Microsoft hopes its presence will spark wider economic benefits for customers and partners throughout the continent.

To ease concerns around data security, particularly in light of US–EU geopolitical tensions, Microsoft has added clauses in agreements with European institutions allowing it to legally resist any external order to halt operations in Europe.

If such efforts failed, Microsoft has arranged for European partners to access its code stored securely in Switzerland, instead of allowing disruptions to affect vital digital services.

Although Microsoft’s investments stand to benefit Europe, they also underscore the company’s deep dependence on the region, with over a quarter of its business based there.

Smith insisted that Microsoft’s global success would not have been possible without its European footprint, and called for continued cooperation across the Atlantic—even in the face of potential tariff disputes or political strains.

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

McGregor proposes Bitcoin reserve in Irish presidential campaign

Conor McGregor has proposed the creation of a national Bitcoin reserve for Ireland, calling it a move to return financial power to the people.

The former UFC champion announced his independent candidacy for president in March. He shared the Bitcoin proposal in a post on X, linking it to crypto’s core values of decentralisation and empowerment.

His proposal comes during a sharp upswing in the Bitcoin market, with the cryptocurrency recently surging to over $104,000. McGregor aims to host a public X Spaces discussion, inviting major Bitcoin figures to help shape the plan.

Crypto influencers Anthony Pompliano and David Bailey have already shown interest, and McGregor responded positively to their involvement.

Despite the bold idea, the path forward is uncertain. Ireland has never explored a sovereign Bitcoin reserve, and implementing such a strategy could face political and regulatory resistance.

McGregor’s credibility in the crypto space is also under scrutiny. His previous blockchain venture, REAL, collapsed after failing to meet its funding goal and was forced to refund investors. Legal challenges, including an appeal against a civil assault conviction, further complicate his campaign.

Bitcoin, meanwhile, is holding above $103,000 after peaking at $104,765. However, momentum is weakening, with RSI and MACD indicators suggesting reduced buying pressure. If the price drops below $103,000, further downside may follow. For now, traders are watching key support levels closely.

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

Google pays around $1.4 billion over privacy case

Google has agreed to pay $1.375 billion to settle a lawsuit brought by the state of Texas over allegations that it violated users’ privacy through features such as Incognito mode, Location History, and biometric data collection.

Despite the sizable sum, Google denies any wrongdoing, stating that the claims were based on outdated practices which have since been updated.

Texas Attorney General Ken Paxton announced the settlement, emphasising that large tech firms are not above the law.

He accused Google of covertly tracking individuals’ locations and personal searches, while also collecting biometric data such as voiceprints and facial geometry — all without users’ consent. Paxton claimed the state’s legal challenge had forced Google to answer for its actions.

Although the settlement resolves two lawsuits filed in 2022, the specific terms and how the funds will be used remain undisclosed. A Google spokesperson maintained that the resolution brings closure to claims about past practices, instead of requiring any changes to its current products.

The case comes after a similar $1.4 billion agreement involving Meta, which faced accusations of unlawfully gathering facial recognition data. The repeated scrutiny from Texas authorities signals a broader pushback against the data practices of major tech companies.

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

Reddit cracks down after AI bot experiment exposed

Reddit is accelerating plans to verify the humanity of its users following revelations that AI bots infiltrated a popular debate forum to influence opinions. These bots crafted persuasive, personalised comments based on users’ post histories, without disclosing their non-human identity.

Researchers from the University of Zurich conducted an unauthorised four-month experiment on the r/changemyview subreddit, deploying AI agents posing as trauma survivors, political figures, and other sensitive personas.

The incident sparked outrage across the platform. Reddit’s Chief Legal Officer condemned the experiment as a violation of both legal and ethical standards, while CEO Steve Huffman stressed that the platform’s strength lies in genuine human exchange.

All accounts linked to the study have been banned, and Reddit has filed formal complaints with the university. To restore trust, Reddit will introduce third-party verification tools that confirm users are human, without collecting personal data.

While protecting anonymity remains a priority, the platform acknowledges it must evolve to meet new threats posed by increasingly sophisticated AI impersonators.

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

Diplo chatbot can make mistakes. Consider checking important information.