Microsoft and OpenAI revisit investment deal

OpenAI chief executive Sam Altman revealed that he had a conversation with Microsoft CEO Satya Nadella on Monday to discuss the future of their partnership.

Speaking on a New York Times podcast, Altman described the dialogue as part of ongoing efforts to align on the evolving nature of their collaboration.

Earlier this month, the Wall Street Journal reported that Microsoft — OpenAI’s primary backer — and the AI firm are in discussions to revise the terms of their investment. Topics under negotiation reportedly include Microsoft’s future equity stake in OpenAI.

According to the Financial Times, Microsoft is weighing whether to pause the talks if the two parties cannot resolve key issues. Neither Microsoft nor OpenAI responded to media requests for comment outside regular business hours.

‘Obviously, in any deep partnership, there are points of tension, and we certainly have those,’ Altman said. ‘But on the whole, it’s been wonderfully good for both companies.’

Altman also commented on his recent discussions with United States President Donald Trump regarding AI. He noted that Trump appeared to grasp the technology’s broader geopolitical and economic significance.

In January, Trump announced Stargate — a proposed private sector initiative to invest up to $500 billion in AI infrastructure — with potential backing from SoftBank, OpenAI, and Oracle.

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

Global digital funding crisis takes centre stage at IGF 2025 session in Norway

At the Internet Governance Forum (IGF) 2025 in Norway, a pivotal session hosted by the APNIC Foundation gathered global experts to address widening digital funding gaps in the developing world.

The discussion spotlighted the shrinking resources for internet development just as 32% of the world’s population remains unconnected, mainly in the Global South.

Neeti Biyani, from the APNIC Foundation, opened the discussion by framing the urgency of transforming digital development into a vehicle for broader socioeconomic outcomes. ‘We need to shift our mindset from infrastructure delivery to meaningful transformation,’ she said, highlighting the need for collaboration beyond traditional donor-recipient models.

Sabhanaz Rashid Diya, Executive Director at the Tech Global Institute, warned of an ‘unhealthy tension between digital development and human rights,’ particularly as governments impose internet shutdowns while touting digital progress. ‘We’re not only leaving people unconnected, we’re actively disconnecting them,’ she said. Diya also called for communities to take greater ownership of digital transformation, moving beyond imposed solutions from the Global North.

Raj Singh, CEO of the APNIC Foundation, expressed concern over the persistent duplication of efforts in digital development. ‘We keep talking about collaboration, but the reality is, there’s very little of it,’ he observed. Singh called for a shift from capacity-building to capability-building and from output-based to outcome-based funding. ‘Without structural change and a supportive ecosystem, we’re just repeating old mistakes,’ he added.

Remy Friedmann of the Swiss Federal Department of Foreign Affairs stressed that digital inclusion must be treated as a cross-sectoral development priority, not a standalone infrastructure issue. ‘Meaningful internet access is not a luxury—it’s fundamental for economic participation and resilience,’ he said.

GIZ’s Franz von Weizsäcker highlighted the challenges of maintaining development momentum amid declining official development assistance (ODA) and restrictive investment climates. He raised concerns about monopolised satellite infrastructure and the need for open ecosystems. ‘Without proper regulation and procurement capacity, many countries won’t benefit from connectivity, even if the cables are laid,’ he noted.

Speaking remotely, ICANN board director Maarten Botterman emphasised the need for local ownership and multistakeholder collaboration. ‘We can’t just push digital transformation down people’s throats. Local communities need to know what to ask for and be part of shaping it,’ he said.

The session also heard from audience members, including Molly Pugh-Jones from the Digital Health and Rights Project, who highlighted challenges in tracking donor investments and called for transparency in digital development funding. A Norwegian entrepreneur expressed frustration with market access barriers, reflecting a broader distrust of private sector actors in development contexts.

Participants agreed that digital development must become a collective effort driven by cooperation, accountability, and locally defined priorities. ‘We’ve solved harder problems before—think polio eradication,’ Diya concluded. ‘It’s time we applied the same collaborative ambition to digital inclusion.’

Track all key moments from the Internet Governance Forum 2025 on our dedicated IGF page.

EuroDIG outcomes shared at IGF 2025 session in Norway

At the Internet Governance Forum (IGF) 2025 in Norway, a high-level networking session was held to share key outcomes from the 18th edition of the European Dialogue on Internet Governance (EuroDIG), which took place earlier this year from 12–14 May in Strasbourg, France. Hosted by the Council of Europe and supported by the Luxembourg Presidency of the Committee of Ministers, the Strasbourg conference centred on balancing innovation and regulation, strongly focusing on safeguarding human rights in digital policy.

Sandra Hoferichter, who moderated the session in Norway, opened by noting the symbolic significance of EuroDIG’s return to Strasbourg—the city where the forum began in 2008. She emphasised EuroDIG’s unique tradition of issuing “messages” as policy input, which IGF and other regional dialogues later adopted.

Swiss Ambassador Thomas Schneider, President of the EuroDIG Support Association, presented the community’s consolidated contributions to the WSIS+20 review process. “The multistakeholder model isn’t optional—it’s essential,” he said, adding that Europe strongly supports making the Internet Governance Forum a permanent institution rather than one renewed every decade. He called for a transparent and inclusive WSIS+20 process, warning against decisions being shaped behind closed diplomatic doors.

YouthDIG representative Frances Douglas Thomson shared insights from the youth-led sessions at EuroDIG. She described strong debates on digital literacy, particularly around the role of generative AI in schools. ‘Some see AI as a helpful assistant; others fear it diminishes critical thinking,’ she said. Content moderation also sparked division, with some young participants calling for vigorous enforcement against harmful content and others raising concerns about censorship. Common ground emerged around the need for greater algorithmic transparency so users understand how content is curated.

Hans Seeuws, business operations manager at EURid, emphasised the need for infrastructure providers to be heard in policy spaces. He supported calls for concrete action on AI governance and digital rights, stressing the importance of translating dialogue into implementation.

Chetan Sharma from the Data Mission Foundation Trust India questioned the practical impact of governance forums in humanitarian crises. Frances highlighted several EuroDIG sessions that tackled using autonomous weapons, internet shutdowns, and misinformation during conflicts. ‘Dialogue across stakeholders can shift how we understand digital conflict. That’s meaningful change,’ she noted.

A representative from Geneva Macro Labs challenged the panel to explain how internet policy can be effective when many governments lack technical literacy. Schneider replied that civil society, business, and academia must step in when public institutions fall short. ‘Democracy is not self-sustaining—it requires daily effort. The price of neglect is high,’ he cautioned.

Janice Richardson, an expert at the Council of Europe, asked how to widen youth participation. Frances praised YouthDIG’s accessible, bottom-up format and called for increased funding to help young people from underrepresented regions join discussions. ‘The more youth feel heard, the more they stay engaged,’ she said.

As the session closed, Hoferichter reminded attendees of the over 400 applications received for YouthDIG this year. She urged donors to help cover the high travel costs, mainly from Eastern Europe and the Caucasus. ‘Supporting youth in internet governance isn’t charity—it’s a long-term investment in inclusive, global policy,’ she concluded.

Track all key moments from the Internet Governance Forum 2025 on our dedicated IGF page.

WSIS+20 review highlights gaps in digital access and skills

Experts gathered at the Internet Governance Forum 2025 in Norway to assess progress since the World Summit on the Information Society (WSIS) was launched two decades ago. The session, co-hosted by the Government of Finland and ICANN, offered a timely stocktake ahead of the WSIS+20 negotiations in December 2025.

Panellists emphasised that WSIS has successfully anchored multistakeholder participation in internet governance. Yet, pressing challenges persist, particularly the digital divide, gender gaps, and lack of basic digital skills—issues that remain just as urgent now as in 2005.

Yu Ping Chan of the United Nations Development Programme (UNDP) stressed that WSIS principles are ‘just as relevant today,’ calling for precise language in negotiations and continued commitment to digital capacity development. She highlighted the disconnect between New York diplomatic processes and those who’ve worked on technical implementation for decades.

Jarno Syrjälä, Undersecretary of State at Finland’s Ministry for Foreign Affairs, said WSIS and the Global Digital Compact must be implemented in sync. ‘A strong focus on trusted, open and secure connectivity is vital for ensuring the internet remains a driver for rights, trade, and sustainability,’ he noted.

Fiona Alexander from American University reminded attendees that WSIS’s hallmark was opening internet governance to all stakeholders. She urged continued pressure to maintain that openness: ‘Don’t accept the status quo—show up, speak up, and stay at the table.’

ICANN CEO Kurtis Lindqvist spotlighted tangible successes such as DNSSEC, root server deployments, and internationalised domain names. ‘We risk forgetting that global internet standards have worked phenomenally well. That’s why we must protect the multistakeholder model that delivered them,’ he said.

Smart Africa’s Director General Lacina Koné outlined four digital development gaps for Africa: meaningful connectivity, regulatory harmonisation, skills development—including AI literacy—and digital sovereignty. He explained, ‘WSIS gives us the vision; Smart Africa is building the bridge.’

The group reflected on emerging issues like AI and the need for interoperable legal and technical frameworks. A live poll during the session revealed that capacity development remains the top global priority. Speakers called on governments, civil society, and the technical community to stay engaged in shaping WSIS+20 outcomes. As Koné put it, ‘Multipolarity is a fact, but multilateralism is a choice.’

Track all key moments from the Internet Governance Forum 2025 on our dedicated IGF page.

AI data risks prompt new global cybersecurity guidance

A coalition of cybersecurity agencies, including the NSA, FBI, and CISA, has issued joint guidance to help organisations protect AI systems from emerging data security threats. The guidance explains how AI systems can be compromised by data supply chain flaws, poisoning, and drift.

Organisations are urged to adopt security measures throughout all four phases of the AI life cycle: planning, data collection, model building, and operational monitoring.

The recommendations include verifying third-party datasets, using secure ingestion protocols, and regularly auditing AI system behaviour. Particular emphasis is placed on preventing model poisoning and tracking data lineage to ensure integrity.

The guidance encourages firms to update their incident response plans to address AI-specific risks, conduct audits of ongoing projects, and establish cross-functional teams involving legal, cybersecurity, and data science experts.

With AI models increasingly central to critical infrastructure, treating data security as a core governance issue is essential.

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

SoftBank plans Arizona tech site; TSMC may join

According to a Bloomberg report, SoftBank Group Corp. founder and CEO Masayoshi Son is reportedly exploring plans to develop a $1 trillion industrial complex in Arizona focused on AI and robotics.

The Tokyo-based technology investment firm’s proposed initiative — Project Crystal Land — aims to re-establish high-tech manufacturing capabilities in the United States.

The complex may include production facilities dedicated to AI-powered industrial robots, Bloomberg cited a source familiar with the matter as saying.

SoftBank reportedly seeks to collaborate with Taiwan Semiconductor Manufacturing Co. (TSMC) on the venture.

However, details regarding the nature of TSMC’s potential involvement or whether the company is considering a formal partnership remain unclear.

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

NCSC issues new guidance for EU cybersecurity rules

The National Cyber Security Centre (NCSC) has published new guidance to assist organisations in meeting the upcoming EU Network and Information Security Directive (NIS2) requirements.

Ireland missed the October 2024 deadline but is expected to adopt the directive soon.

NIS2 broadens the scope of covered sectors and introduces stricter cybersecurity obligations, including heavier fines and legal consequences for non-compliance. The directive aims to improve security across supply chains in both the public and private sectors.

To help businesses comply, the NCSC unveiled Risk Management Measures. It also launched Cyber Fundamentals, a practical framework designed for organisations of varying sizes and risk levels.

Joseph Stephens, NCSC’s Director of Resilience, noted the challenge of broad application and praised cooperation with Belgium and Romania on a solution for the EU.

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

OpenAI and io face lawsuit over branding conflict

OpenAI and hardware startup io, founded by former Apple designer Jony Ive, are now embroiled in a trademark infringement lawsuit filed by iyO, a Google-backed company specialising in custom headphones.

The legal case prompted OpenAI to withdraw promotional material linked to its $6.005 billion acquisition of io, raising questions about the branding of its future AI device.

Court documents reveal that OpenAI and io had previously met with iyO representatives and tested their custom earbud product, although the tests were unsuccessful.

Despite initial contact and discussions about potential collaboration, OpenAI rejected iyO’s proposals to invest, license, or acquire the company for $200 million. The lawsuit, however, does not centre on an earbud or wearable device, according to io’s co-founders.

Io executives clarified in court that their prototype does not resemble iyO’s product and remains unfinished. It is neither wearable nor intended for sale within the following year.

OpenAI CEO Sam Altman described the joint project as an attempt to reimagine hardware interfaces. At the same time, Jony Ive expressed enthusiasm for the device’s early design, which he claims captured his imagination.

Court testimony and emails suggest io explored various technologies, including desktop, mobile, and portable designs. Internal communications also reference possible ergonomic research using 3D ear scan data.

Although the lawsuit has exposed some development details, the main product of the collaboration between OpenAI and io remains undisclosed.

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

M&S and Co‑op hit by Scattered Spider attack

High street giants M&S and Co‑op remain under siege after the Scattered Spider gang’s sophisticated cyber‑attack this April. The breaches disrupted online services and automated systems, leading to suspended orders, empty shelves and significant reputational damage.

Authorities have classified the incident as category‑2, with initial estimates suggesting losses between £270 million and £440 million. M&S expects a £300 million hit to its annual profit, with daily online sales down by up to £4 million during the outage.

In a rare display of unity, Tesco’s Booker arm stepped in to supply M&S and some independent Co‑op stores, helping to ease stock shortages. Meanwhile, cyber insurers have signalled increasing premiums, with the cost of cover for retail firms rising by up to 10 percent.

The National Cyber Security Centre and government ministers have issued urgent calls for the sector to strengthen defences, citing such high‑impact incidents as a vital wake‑up call for business readiness.

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

Banks and tech firms create open-source AI standards

A group of leading banks and technology firms has joined forces to create standardised open-source controls for AI within the financial sector.

The initiative, led by the Fintech Open Source Foundation (FINOS), includes financial institutions such as Citi, BMO, RBC, and Morgan Stanley, working alongside major cloud providers like Microsoft, Google Cloud, and Amazon Web Services.

Known as the Common Controls for AI Services project, the effort seeks to build neutral, industry-wide standards for AI use in financial services.

The framework will be tailored to regulatory environments, offering peer-reviewed governance models and live validation tools to support real-time compliance. It extends FINOS’s earlier Common Cloud Controls framework, which originated with contributions from Citi.

Gabriele Columbro, Executive Director of FINOS, described the moment as critical for AI in finance. He emphasised the role of open source in encouraging early collaboration between financial firms and third-party providers on shared security and compliance goals.

Instead of isolated standards, the project promotes unified approaches that reduce fragmentation across regulated markets.

The project remains open for further contributions from financial organisations, AI vendors, regulators, and technology companies.

As part of the Linux Foundation, FINOS provides a neutral space for competitors to co-develop tools that enhance AI adoption’s safety, transparency, and efficiency in finance.

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