Digital cooperation

DeepSeek and others gain traction in US and EU

A recent survey has found that most US and the EU users are open to using Chinese large language models, even amid ongoing political and cybersecurity scrutiny.

According to the report, 71 percent of respondents in the US and 87 percent in the EU would consider adopting models developed in China.

The findings highlight increasing international curiosity about the capabilities of Chinese AI firms such as DeepSeek, which have recently attracted global attention.

While the technology is gaining credibility, many Western users remain cautious about data privacy and infrastructure control.

More than half of those surveyed said they would only use Chinese AI models if hosted outside China. However, this suggests that while trust in the models’ performance is growing, concerns over data governance remain a significant barrier to adoption.

The results come amid heightened global competition in the AI race, with Chinese developers rapidly advancing to challenge US-based leaders. DeepSeek and similar firms now face balancing global outreach with geopolitical limitations.

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Meta tells Australia AI needs real user data to work

Meta, the parent company of Facebook, Instagram, and WhatsApp, has urged the Australian government to harmonise privacy regulations with international standards, warning that stricter local laws could hamper AI development. The comments came in Meta’s submission to the Productivity Commission’s review on harnessing digital technology, published this week.

Australia is undergoing its most significant privacy reform in decades. The Privacy and Other Legislation Amendment Bill 2024, passed in November and given royal assent in December, introduces stricter rules around handling personal and sensitive data. The rules are expected to take effect throughout 2024 and 2025.

Meta maintains that generative AI systems depend on access to large, diverse datasets and cannot rely on synthetic data alone. In its submission, the company argued that publicly available information, like legislative texts, fails to reflect the cultural and conversational richness found on its platforms.

Meta said its platforms capture the ways Australians express themselves, making them essential to training models that can understand local culture, slang, and online behaviour. It added that restricting access to such data would make AI systems less meaningful and effective.

The company has faced growing scrutiny over its data practices. In 2024, it confirmed using Australian Facebook data to train AI models, although users in the EU have the option to opt out—an option not extended to Australian users.

Pushback from regulators in Europe forced Meta to delay its plans for AI training in the EU and UK, though it resumed these efforts in 2025.

Australia’s Office of the Australian Information Commissioner has issued guidance on AI development and commercial deployment, highlighting growing concerns about transparency and accountability. Meta argues that diverging national rules create conflicting obligations, which could reduce the efficiency of building safe and age-appropriate digital products.

Critics claim Meta is prioritising profit over privacy, and insist that any use of personal data for AI should be based on informed consent and clearly demonstrated benefits. The regulatory debate is intensifying at a time when Australia’s outdated privacy laws are being modernised to protect users in the AI age.

The Productivity Commission’s review will shape how the country balances innovation with safeguards. As a key market for Meta, Australia’s decisions could influence regulatory thinking in other jurisdictions confronting similar challenges.

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EU and Japan deepen AI cooperation under new digital pact

In May 2025, the European Union and Japan formally reaffirmed their long-standing EU‑Japan Digital Partnership during the third Digital Partnership Council in Tokyo. Delegations agreed to deepen collaboration in pivotal digital technologies, most notably artificial intelligence, quantum computing, 5G/6G networks, semiconductors, cloud, and cybersecurity.

A joint statement committed to signing an administrative agreement on AI, aligned with principles from the Hiroshima AI Process. Shared initiatives include a €4 million EU-supported quantum R&D project named Q‑NEKO and the 6G MIRAI‑HARMONY research effort.

Both parties pledge to enhance data governance, digital identity interoperability, regulatory coordination across platforms, and secure connectivity via submarine cables and Arctic routes. The accord builds on the Strategic Partnership Agreement activated in January 2025, reinforcing their mutual platform for rules-based, value-driven digital and innovation cooperation.

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Teens turn to AI for advice and friendship

A growing number of US teens rely on AI for daily decision‑making and emotional support, with chatbots such as ChatGPT, Character.AI and Replika. One Kansas student admits she uses AI to simplify everyday tasks, using it to choose clothes or plan events while avoiding schoolwork.

A survey by Common Sense Media reveals that over 70 per cent of teenagers have tried AI companions, with around half using them regularly. Roughly a third reported discussing serious issues with AI, sometimes finding it as or more satisfying than talking with friends.

Experts express concern that such frequent AI interactions could hinder development of creativity, critical thinking and social skills in young people. The study warns adolescents may become overly validated by AI, missing out on real‑world emotional growth.

Educators caution that while AI offers constant, non‑judgemental feedback, it is not a replacement for authentic human relationships. They recommend AI use be carefully supervised to ensure it complements rather than replaces real interaction.

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UK to retaliate against cyber attacks, minister warns

Britain’s security minister has warned that hackers targeting UK institutions will face consequences, including potential retaliatory cyber operations.

Speaking to POLITICO at the British Library — still recovering from a 2023 ransomware attack by Rysida — Security Minister Dan Jarvis said the UK is prepared to use offensive cyber capabilities to respond to threats.

‘If you are a cybercriminal and think you can attack a UK-based institution without repercussions, think again,’ Jarvis stated. He emphasised the importance of sending a clear signal that hostile activity will not go unanswered.

The warning follows a recent government decision to ban ransom payments by public sector bodies. Jarvis said deterrence must be matched by vigorous enforcement.

The UK has acknowledged its offensive cyber capabilities for over a decade, but recent strategic shifts have expanded its role. A £1 billion investment in a new Cyber and Electromagnetic Command will support coordinated action alongside the National Cyber Force.

While Jarvis declined to specify technical capabilities, he cited the National Crime Agency’s role in disrupting the LockBit ransomware group as an example of the UK’s growing offensive posture.

AI is accelerating both cyber threats and defensive measures. Jarvis said the UK must harness AI for national advantage, describing an ‘arms race’ amid rapid technological advancement.

Most cyber threats originate from Russia or its affiliated groups, though Iran, China, and North Korea remain active. The UK is also increasingly concerned about ‘hack-for-hire’ actors operating from friendly nations, including India.

Despite these concerns, Jarvis stressed the UK’s strong security ties with India and ongoing cooperation to curb cyber fraud. ‘We will continue to invest in that relationship for the long term,’ he said.

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AI music tools arrive for YouTube creators

YouTube is trialling two new features to improve user engagement and content creation. One enhances comment readability, while the other helps creators produce music using AI for Shorts.

A new threaded layout is being tested to organise comment replies under the original post, allowing more explicit and focused conversations. Currently, this feature is limited to a small group of Premium users on mobile.

YouTube also expands Dream Track, an AI-powered tool that creates 30-second music clips from simple text prompts. Creators can generate sounds matching moods like ‘chill piano melody’ or ‘energetic pop beat’, with the option to include AI-generated vocals styled after popular artists.

Both features are available only in the US during the testing phase, with no set date for international release. YouTube’s gradual updates reflect a shift toward more intuitive user experiences and creative flexibility on the platform.

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Amazon buys Bee AI, the startup that listens to your day

Amazon has acquired Bee AI, a San Francisco-based startup known for its $50 wearable that listens to conversations and provides AI-generated summaries and reminders.

The deal was confirmed by Bee co-founder Maria de Lourdes Zollo in a LinkedIn post on Wednesday, but the acquisition terms were not disclosed. Bee gained attention earlier this year at CES in Las Vegas, where it unveiled a Fitbit-like bracelet using AI to deliver personal insights.

The device received strong feedback for its ability to analyse conversations and create to-do lists, reminders, and daily summaries. Bee also offers a $19-per-month subscription and an Apple Watch app. It raised $7 million before being acquired by Amazon.

‘When we started Bee, we imagined a world where AI is truly personal,’ Zollo wrote. ‘That dream now finds a new home at Amazon.’ Amazon confirmed the acquisition and is expected to integrate Bee’s technology into its expanding AI device strategy.

The company recently updated Alexa with generative AI and added similar features to Ring, its home security brand. Amazon’s hardware division is now led by Panos Panay, the former Microsoft executive who led Surface and Windows 11 development.

Bee’s acquisition suggests Amazon is exploring its own AI-powered wearable to compete in the rapidly evolving consumer tech space. It remains unclear whether Bee will operate independently or be folded into Amazon’s existing device ecosystem.

Privacy concerns have surrounded Bee, as its wearable records audio in real time. The company claims no recordings are stored or used for AI training. Bee insists that users can delete their data at any time. However, privacy groups have flagged potential risks.

The AI hardware market has seen mixed success. Meta’s Ray-Ban smart glasses gained traction, but others like the Rabbit R1 flopped. The Humane AI Pin also failed commercially and was recently sold to HP. Consumers remain cautious of always-on AI devices.

OpenAI is also moving into hardware. In May, it acquired Jony Ive’s AI startup, io, for a reported $6.4 billion. OpenAI has hinted at plans to develop a screenless wearable, joining the race to create ambient AI tools for daily life.

Bee’s transition from startup to Amazon acquisition reflects how big tech is absorbing innovation in ambient, voice-first AI. Amazon’s plans for Bee remain to be seen, but the move could mark a turning point for AI wearables if executed effectively.

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Musk denies fundraising as xAI eyes supercluster growth

According to sources cited by the Wall Street Journal, Elon Musk’s AI company xAI is reportedly working with Valor Equity Partners to raise to US$12 billion for expansion.

Valor, an investment firm founded by Antonio Gracias, a long-time associate of Musk, is in discussions with lenders to secure the capital.

Funds would be used to acquire a substantial number of Nvidia AI chips, which would then be leased to xAI to support a new large-scale data centre for training and running the Grok chatbot.

Neither Valor nor xAI provided comments in response to media enquiries. Some financial institutions involved in the talks have reportedly pushed for repayment within three years and are seeking to limit borrowing amounts to reduce risk exposure.

Developing and deploying advanced AI systems requires a vast investment in hardware, computational resources and specialist talent. Companies like OpenAI, Google and China-based DeepSeek compete intensely in this domain.

In a post on X, Musk confirmed that Grok is being trained using a supercluster with 230,000 GPUs, including 30,000 of Nvidia’s GB200 chips. Another supercluster will launch soon, beginning with 550,000 GB200 and GB300 chips.

Reports suggest xAI may spend around US$13 billion in 2025. Earlier in July, Financial Times reported that xAI was discussing raising funds in a deal potentially valuing the firm between US$170 billion and US$200 billion.

In response to those claims, Musk denied that fundraising was ongoing, stating: ‘We have plenty of capital.’

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Teen builds Hindi AI tool to help paralysis patients speak

An Indian teenager has created a low-cost AI device that translates slurred speech into clear Hindi, helping patients with paralysis and neurological conditions communicate more easily.

Pranet Khetan’s innovation, Paraspeak, uses a custom Hindi speech recognition model to address a long-ignored area of assistive tech.

The device was inspired by Khetan’s visit to a paralysis care centre, where he saw patients struggling to express themselves. Unlike existing English models, Paraspeak is trained on the first Hindi dysarthic speech dataset in India, created by Khetan himself through recordings and data augmentation.

Using transformer architecture, Paraspeak converts unclear speech into understandable output using cloud processing and a neck-worn compact device. It is designed to be scalable across different speakers, unlike current solutions that only work for individual patients.

The AI device is affordable, costing around ₹2,000 to build, and is already undergoing real-world testing. With no existing market-ready alternative for Hindi speakers, Paraspeak represents a significant step forward in inclusive health technology.

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North Korea turns to Russia for AI development help

North Korea is dispatching AI researchers, interns and students to countries such as Russia in an effort to strengthen its domestic tech sector, according to a report by NK News.

The move comes despite strict UN sanctions that restrict technological exchange, particularly in high-priority areas like AI.

Kim Kwang Hyok, head of the AI Institute at Kim Il Sung University, confirmed the strategy in an interview with a pro-Pyongyang outlet in Japan. He admitted that international restrictions remain a major hurdle but noted that researchers continue developing AI applications within North Korea regardless.

Among the projects cited is ‘Ryongma’, a multilingual translation app supporting English, Russian, and Chinese, which has been available on mobile devices since 2021.

Kim also mentioned efforts to develop an AI-driven platform for a hospital under construction in Pyongyang. However, technical limitations remain considerable, with just three known semiconductor plants operating in the country.

While Russia may seem like a natural partner, its own dependence on imported hardware limits how much it can help.

A former South Korean diplomat told NK News that Moscow lacks the domestic capacity to provide high-performance chips essential for advanced AI work, making large-scale collaboration difficult.

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