Digital business models

Meta forms AI powerhouse by appointing Shengjia Zhao as chief scientist

Meta has appointed former OpenAI researcher Shengjia Zhao as Chief Scientist of its newly formed AI division, Meta Superintelligence Labs (MSL).

Zhao, known for his pivotal role in developing ChatGPT, GPT-4, and OpenAI’s first reasoning model, o1, will lead MSL’s research agenda under Alexandr Wang, the former CEO of Scale AI.

Mark Zuckerberg confirmed Zhao’s appointment, saying he had been leading scientific efforts from the start and co-founded the lab.

Meta has aggressively recruited top AI talent to build out MSL, including senior researchers from OpenAI, DeepMind, Apple, Anthropic, and its FAIR lab. Zhao’s presence helps balance the leadership team, as Wang lacks a formal research background.

Meta has reportedly offered massive compensation packages to lure experts, with Zuckerberg even contacting candidates personally and hosting them at his Lake Tahoe estate. MSL will focus on frontier AI, especially reasoning models, in which Meta currently trails competitors.

By 2026, MSL will gain access to Meta’s massive 1-gigawatt Prometheus cloud cluster in Ohio, designed to power large-scale AI training.

The investment and Meta’s parallel FAIR lab, led by Yann LeCun, signal the company’s multi-pronged strategy to catch up with OpenAI and Google in advanced AI research.

The collaboration dynamics between MSL, FAIR, and Meta’s generative AI unit remain unclear, but the company now boasts one of the strongest AI research teams in the industry.

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

UN urges global rules for AI to prevent inequality

According to Doreen Bogdan-Martin, head of the UN’s International Telecommunications Union, the world must urgently adopt a unified approach to AI regulation.

She warned that fragmented national strategies could deepen global inequalities and risk leaving billions excluded from the AI revolution.

Bogdan-Martin stressed that only a global framework can ensure AI benefits all of humanity instead of worsening digital divides.

With 85% of countries lacking national AI strategies and 2.6 billion people still offline, she argued that a coordinated effort is essential to bridge access gaps and prevent AI from becoming a tool that advances inequality rather than opportunity.

ITU chief highlighted the growing divide between regulatory models — from the EU’s strict governance and China’s centralised control to the US’s new deregulatory push under Donald Trump.

She avoided direct criticism of the US strategy but called for dialogue between all regions instead of fragmented policymaking.

Despite the rapid advances of AI in sectors like healthcare, agriculture and education, Bogdan-Martin warned that progress must be inclusive. She also urged more substantial efforts to bring women into AI and tech leadership, pointing to the continued gender imbalance in the sector.

As the first woman to lead ITU, she said her role was not just about achievement but setting a precedent for future generations.

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

Most Americans still avoid investing in crypto

Despite growing visibility and political support, cryptocurrencies remain on the fringes for most Americans. A new Gallup poll shows that only 14% of US adults currently own digital assets—an increase since 2018, yet still a small minority.

Sixty percent say they have no interest in ever purchasing cryptocurrencies, and only 4% plan to buy shortly.

Ownership is notably higher among men aged 18–49, especially those with higher incomes and university degrees. In contrast, women, older adults, and low-income groups show limited participation.

Even among investors with over $10,000 in traditional assets, only 17% hold crypto, though this is a notable jump from 2% in 2018.

Public understanding of cryptocurrencies remains limited. While most respondents have heard of them, only 35% say they understand how they work.

Even among those with some knowledge, 64% label crypto as ‘very risky’—a figure that has increased since 2021.

The crypto sector’s volatility, scandals like FTX, and lingering security concerns continue to shape sentiment. Although regulation has improved and political attitudes have shifted, trust remains low. Only 4% of Americans consider crypto the best option for long-term investment.

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

UK enforces age checks to block harmful online content for children

The United Kingdom has introduced new age verification laws to prevent children from accessing harmful online content, marking a significant shift in digital child protection.

The measures, enforced by media regulator Ofcom, require websites and apps to implement strict age checks such as facial recognition and credit card verification.

Around 6,000 pornography websites have already agreed to the new regulations, which stem from the 2023 Online Safety Act. The rules also target content related to suicide, self-harm, eating disorders and online violence, instead of just focusing on pornography.

Companies failing to comply risk fines of up to £18 million or 10% of global revenue, and senior executives could face criminal charges if they ignore Ofcom’s directives.

Technology Secretary Peter Kyle described the move as a turning point, saying children will now experience a ‘different internet for the first time’.

Ofcom data shows that around 500,000 children aged eight to fourteen encountered online pornography in just one month, highlighting the urgency of the reforms. Campaigners, including the NSPCC, called the new rules a ‘milestone’, though they warned loopholes could remain.

The UK government is also exploring further restrictions, including a potential daily two-hour time limit on social media use for under-16s. Kyle has promised more announcements soon, as Britain moves to hold tech platforms accountable instead of leaving children exposed to harmful content online.

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

Agentic AI forces rethink of cloud infrastructure

Cybersecurity experts warn that reliance on traditional firewalls and legacy VPNs may pose greater risks than protection. These outdated tools often lack timely updates, making them prime entry points for cyber attackers exploiting AI-powered techniques.

Many businesses depend on ageing infrastructure, unaware that unpatched VPNs and web servers expose them to significant cybersecurity threats. Experts urge companies to abandon these legacy systems and modernise their defences with more adaptive, zero-trust models.

Meanwhile, OpenAI’s reported plans for a productivity suite challenge Microsoft’s dominance, promising simpler interfaces powered by generative AI. The shift could reshape daily workflows by integrating document creation directly with AI tools.

Agentic AI, which performs autonomous tasks without human oversight, also redefines enterprise IT demands. Experts believe traditional cloud tools cannot support such complex systems, prompting calls to rethink cloud strategies for more tailored, resilient platforms.

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

The US push for AI dominance through openness

In a bold move to maintain its edge in the global AI race—especially against China—the United States has unveiled a sweeping AI Action Plan with 103 recommendations. At its core lies an intriguing paradox: the push for open-source AI, typically associated with collaboration and transparency, is now being positioned as a strategic weapon.

As Jovan Kurbalija points out, this plan marks a turning point where open-weight models are framed not just as tools of innovation, but as instruments of geopolitical influence, with the US aiming to seed the global AI ecosystem with American-built systems rooted in ‘national values.’

The plan champions Silicon Valley by curbing regulations, limiting federal scrutiny, and shielding tech giants from legal liability—potentially reinforcing monopolies. It also underlines a national security-first mentality, urging aggressive safeguards against foreign misuse of AI, cyber threats, and misinformation. Notably, it proposes DARPA-led initiatives to unravel the inner workings of large language models, acknowledging that even their creators often can’t fully explain how these systems function.

Internationally, the plan takes a competitive, rather than cooperative, stance. Allies are expected to align with US export controls and values, while multilateral forums like the UN and OECD are dismissed as bureaucratic and misaligned. That bifurcation risks alienating global partners—particularly the EU, which favours heavy AI regulation—while increasing pressure on countries like India and Japan to choose sides in the US–China tech rivalry.

Despite its combative framing, the strategy also nods to inclusion and workforce development, calling for tax-free employer-sponsored AI training, investment in apprenticeships, and growing military academic hubs. Still, as Kurbalija warns, the promise of AI openness may clash with the plan’s underlying nationalistic thrust—raising questions about whether it truly aims to democratise AI, or merely dominate it.

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

Google brings Gemini AI shortcut to Android home screens

Google has launched a new AI Mode shortcut in Android Search, offering direct home-screen access to its Gemini-powered tools. The upgrade brings conversational AI to everyday mobile searches, enabling users to ask complex questions and receive context-rich responses without leaving the home screen.

AI Mode, introduced in Google Labs and now available on a wide range of Android devices, marks a leap in integrating AI across Android’s ecosystem. The feature’s rise from a limited beta to mass adoption follows enhancements powered by Gemini 2.5 Pro and Deep Search, now with 100 million monthly users.

Key functions include multimodal inputs, advanced planning tools, and even the ability for AI to call businesses to verify local information. These capabilities are already live for paid subscribers, while core features remain free, drawing comparisons with rivals such as ChatGPT and Bing AI.

Privacy concerns surfaced as real-time interactions expand, but Google claims strong data protection controls are in place. As AI-powered results blend into traditional search, SEO strategies and user trust will be tested, signalling a new era in mobile discovery and digital engagement.

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

Women-only dating app Tea suffers catastrophic data leak

Tea, a women-only dating app, has suffered a massive data breach after its backend was found completely unsecured. Over 72,000 private images and more than 13,000 government-issued IDs were leaked online.

Some documents were dated as recently as 2025, contradicting the company’s claim that only ‘old data’ was affected. The data, totalling 59.3 GB, included verification selfies, DMs, and public posts. It spread rapidly through 4chan and decentralised platforms like BitTorrent.

Critics have blamed Tea’s use of ‘vibe coding’, AI-generated code with no proper review, which reportedly left its Firebase database open with no authentication.

Experts warn that relying on AI tools to build apps without security checks is becoming increasingly risky. Research shows nearly half of AI-generated code contains vulnerabilities, yet many startups still use it for core features. Tea users are now urged to monitor their identity and financial data.

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

Bank of England calls for urgent digital payments reform

Bank of England Governor Andrew Bailey has called for urgent digital upgrades to the UK’s retail payments system to support future growth.

At the Mansion House dinner, he said upgrading infrastructure is vital to support the economy and stay globally competitive.

Bailey remains sceptical about launching a digital pound. While he acknowledged that stablecoins may have a future role, he stressed they must not replace commercial bank money and must be appropriately regulated.

He also warned against global banks issuing their stablecoins, which could reduce lending capacity.

He went on to express concern over rising global trade tensions, calling the shift in policy ‘the most sudden and fundamental’ in decades.

Bailey urged the IMF and WTO to step in and help restore cooperation in the international trading system.

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

New AI startup enables context across thousands of hours of video

Samsung Next has invested in Memories.ai, a startup specialising in long-duration video analysis capable of processing up to 10 million hours of footage.

The tool uses AI to transform massive video archives into searchable, structured datasets, even across multiple videos spanning hours or days.

The solution employs a layered pipeline: it filters noise, compresses critical segments, indexes content for natural-language queries, segments into meaningful units, and aggregates those insights into digestible reports. This structure enables users to search and analyse complex visual datasets seamlessly.

Memories.ai’s co-founders, Dr Shawn Shen and Enmin (Ben) Zhou, bring backgrounds from Meta’s Reality Labs and machine learning engineering.

The company raised $8 million in seed funding, surpassing its $4 million goal, led by Susa Ventures, including Samsung Next, Fusion Fund, Crane Ventures, Seedcamp, and Creator Ventures.

Samsung is banking on Memories.ai’s edge computing strengths, particularly to enable privacy-conscious applications such as home security analytics without cloud dependency. Its startup focus includes security firms and marketers needing scalable tools to sift through extensive video content.

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