Digital cooperation Archives | Page 171 of 221

Telegram partners with Musk’s xAI

Elon Musk’s AI company, xAI, is partnering with Telegram to bring its AI assistant, Grok, to the messaging platform’s more than one billion users.

Telegram founder Pavel Durov announced that Grok will be integrated into Telegram’s apps and distributed directly through the service.

Instead of a simple tech integration, the arrangement includes a significant financial deal. Telegram is set to receive $300 million in cash and equity from xAI, along with half of the revenue from any xAI subscriptions sold through the platform. The agreement is expected to last one year.

The move mirrors Meta’s recent rollout of AI features on WhatsApp, which drew criticism from users concerned about the changing nature of private messaging.

Analysts like Hanna Kahlert of Midia Research argue that users still prefer using social platforms to connect with friends, and that adding AI tools could erode trust and shift focus away from what made these apps popular in the first place.

The partnership also links two controversial tech figures. Durov was arrested in France in 2024 over allegations that Telegram failed to curb criminal activity, though he denies obstructing law enforcement.

Meanwhile, Musk has been pushing into AI development after falling out with OpenAI, and is using xAI to rival industry giants. In March, he valued xAI at $80 billion after acquiring X, formerly known as Twitter.

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UK and EU strengthen maritime and cyber security

The UK and the EU have agreed to step up cooperation on cybersecurity as part of a wider defence and security pact.

The new framework, signed on 19 May, marks a major shift towards joint efforts in countering digital threats and hybrid warfare.

Instead of managing these challenges separately, the UK and EU will hold structured dialogues to address cyberattacks, disinformation campaigns, and other forms of foreign interference.

The deal outlines regular exchanges between national security officials, supported by thematic discussions focused on crisis response, infrastructure protection, and online misinformation.

A key aim is to boost resilience against hostile cyber activity by working together on detection, defence, and prevention strategies. The agreement encourages joint efforts to safeguard communication networks, protect energy grids, and strengthen public awareness against information manipulation.

The cooperation is expected to extend into coordinated drills and real-time threat sharing.

While the UK remains outside the EU’s political structure, the agreement positions it as a close cyber security partner.

Future plans include exploring deeper collaboration through EU defence projects and potentially forming a formal link with the European Defence Agency, ensuring that both sides can respond more effectively to emerging digital threats.

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Salesforce turns to Google Cloud in AI race

Salesforce has entered a multibillion-dollar agreement with Google Cloud, committing to spend at least US$2.5 billion over the next seven years.

The deal enables Salesforce products—including customer-management tools, Agentforce AI assistants, and Data Cloud services—to run directly on Google’s infrastructure.

The partnership reflects a broader effort by both companies to strengthen their position in the growing generative AI market.

While Microsoft currently dominates this space by offering AI services to a significant portion of Fortune 500 firms, Salesforce and Google are seeking to expand their reach in AI-powered productivity and customer experience solutions.

By deepening integration with Google Cloud, Salesforce aims to give its enterprise customers access to more scalable and efficient AI services. The collaboration positions both firms to compete more aggressively with Microsoft, particularly in AI-driven business software and cloud solutions.

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OpenAI expands in Asia with new Seoul branch

OpenAI is set to open a new office in Seoul, responding to surging demand for its AI tools in South Korea—the country with the second-highest number of paid ChatGPT subscribers after the US.

The move follows the establishment of a South Korean unit and marks OpenAI’s third office in Asia, following Tokyo and Singapore.

Jason Kwon, OpenAI’s chief strategy officer, said Koreans are not only early adopters of ChatGPT but also influential in how the technology is being applied globally. Instead of just expanding user numbers, OpenAI aims to engage local talent and governments to tailor its tools for Korean users and developers.

The expansion builds on existing partnerships with local firms like Kakao, Krafton and SK Telecom. While Kwon did not confirm plans for a South Korean data centre, he is currently touring Asia to strengthen AI collaborations in countries including Japan, India, and Australia.

OpenAI’s global growth strategy includes infrastructure projects like the Stargate data centre in the UAE, and its expanding footprint in Asia-Pacific follows similar moves by Google, Microsoft and Meta.

The initiative has White House backing but faces scrutiny in the US over potential exposure to Chinese rivals.

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EU workshop gathers support and scrutiny for the DSA

A packed conference centre in Brussels hosted over 200 stakeholders on 7 May 2025, as the European Commission held a workshop on the EU’s landmark Digital Services Act (DSA).

The pioneering law aims to protect users online by obliging tech giants—labelled as Very Large Online Platforms and Search Engines (VLOPSEs)—to assess and mitigate systemic risks their services might pose to society at least once a year, instead of waiting for harmful outcomes to trigger regulation.

Rather than focusing on banning content, the DSA encourages platforms to improve internal safeguards and transparency. It was designed to protect democratic discourse from evolving online threats like disinformation without compromising freedom of expression.

Countries like Ukraine and Moldova are working closely with the EU to align with the DSA, balancing protection against foreign aggression with open political dialogue. Others, such as Georgia, raise concerns that similar laws could be twisted into tools of censorship instead of accountability.

The Commission’s workshop highlighted gaps in platform transparency, as civil society groups demanded access to underlying data to verify tech firms’ risk assessments. Some are even considering stepping away from such engagements until concrete evidence is provided.

Meanwhile, tech companies have already rolled back a third of their disinformation-related commitments under the DSA Code of Conduct, sparking further concern amid Europe’s shifting political climate.

Despite these challenges, the DSA has inspired interest well beyond EU borders. Civil society groups and international institutions like UNESCO are now pushing for similar frameworks globally, viewing the DSA’s risk-based, co-regulatory approach as a better alternative to restrictive speech laws.

The digital rights community sees this as a crucial opportunity to build a more accountable and resilient information space.

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AI regulation offers development opportunity for Latin America

Latin America is uniquely positioned to lead on AI governance by leveraging its social rights-focused policy tradition, emerging tech ecosystems, and absence of legacy systems.

According to a new commentary by Eduardo Levy Yeyati at the Brookings Institution, the region has the opportunity to craft smart AI regulation that is both inclusive and forward-looking, balancing innovation with rights protection.

Despite global momentum on AI rulemaking, Latin American regulatory efforts remain slow and fragmented, underlining the need for early action and regional cooperation.

The proposed framework recommends flexible, enforceable policies grounded in local realities, such as adapting credit algorithms for underbanked populations or embedding linguistic diversity in AI tools.

Governments are encouraged to create AI safety units, invest in public oversight, and support SMEs and open-source innovation to avoid monopolisation. Regulation should be iterative and participatory, using citizen consultations and advisory councils to ensure legitimacy and resilience through political shifts.

Regional harmonisation will be critical to avoid a patchwork of laws and promote Latin America’s role in global AI governance. Coordinated data standards, cross-border oversight, and shared technical protocols are essential for a robust, trustworthy ecosystem.

Rather than merely catching up, Latin America can become a global model for equitable and adaptive AI regulation tailored to the needs of developing economies.

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Nvidia unveils cheaper AI chip for China

Nvidia is preparing to launch a lower-cost AI chip for China that complies with US export restrictions, with mass production expected to begin as early as June.

The upcoming GPU will be based on the latest Blackwell architecture but will carry reduced specifications compared to the recently restricted H20 model. It is expected to sell for $6,500 to $8,000, significantly cheaper than the $10,000–$12,000 H20, reflecting its simpler design and less advanced components.

Sources say the new chip, likely named either the 6000D or B40, will use GDDR7 memory instead of high-bandwidth memory and will avoid Taiwan Semiconductor Manufacturing Co’s CoWoS packaging technology.

Nvidia had initially planned to downgrade the H20, but tighter US rules made that unviable. Instead of relying on its older Hopper architecture, the company is shifting to Blackwell for future developments in China.

Nvidia has been forced to adapt repeatedly due to tightening US export restrictions aimed at slowing China’s technological progress. Its market share in China has dropped from 95% before 2022 to around 50% today, as competitors like Huawei gain ground with chips like the Ascend 910B.

CEO Jensen Huang noted that continuing restrictions could further drive Chinese firms towards domestic alternatives, cutting Nvidia off from more of the $50 billion data centre market.

Huang also revealed that US curbs have forced Nvidia to write off $5.5 billion in inventory and abandon $15 billion in potential sales. New limits now target GPU memory bandwidth, a key factor for AI performance, capping it at around 1.8 terabytes per second.

The upcoming chip is expected to remain just within this limit, allowing Nvidia to retain a foothold in China instead of exiting the market entirely.

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Oracle and OpenAI target AI leadership with massive chip project

Oracle has reportedly acquired around 400,000 Nvidia GB200 AI chips valued at approximately $40 billion for deployment at a data centre in Abilene, Texas.

The location will be the first site of the Stargate project—a $500 billion AI infrastructure initiative backed by OpenAI, Oracle, SoftBank, and Abu Dhabi’s MGX fund, which President Trump announced earlier this year.

Once completed, the Abilene facility is expected to provide up to 1.2 gigawatts of computing power, rivalling Elon Musk’s Colossus project in Memphis.

Although Oracle will operate from the site, the land is owned by AI infrastructure firm Cruso and US investment company Blue Owl Capital, which have collectively invested more than $15 billion through financing.

Oracle will lease the campus for 15 years, using the chips to offer computing power to OpenAI for training its next-generation AI models.

Previously dependent solely on Microsoft’s data centres, OpenAI faced bottlenecks due to limited capacity, prompting it to end the exclusivity agreement and look elsewhere.

While individual investors have committed funds, the Stargate project has not officially financed any facility yet. In parallel, OpenAI has announced Stargate UAE—a 5-gigawatt site in Abu Dhabi using over 2 million Nvidia chips, built in partnership with G42.

A surging demand for AI infrastructure has significantly boosted Nvidia’s market value, with the company reclaiming its top global ranking in late 2024.

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Nvidia recovers as DeepSeek fears fade

Earlier this year, Nvidia shares declined following concerns over DeepSeek and the possibility that tech giants might reduce AI-related spending. Worries over export restrictions added to investor unease.

However, Wedbush Securities’ managing director Matt Bryson believes the DeepSeek issue is now firmly behind the company. According to Bryson, DeepSeek — mostly a China-based phenomenon — unexpectedly boosted demand for AI servers, which ultimately benefited Nvidia instead of hurting it.

Another key development is Oracle’s plan to spend around $40 billion on Nvidia’s GB200 chips to power OpenAI’s new data centre.

Bryson suggested this is part of a broader trend among hyperscalers like Oracle and Crusoe, which recently secured funding to build new facilities. He expects this spending to appear in Nvidia’s earnings as early as Q2 or Q3, instead of being delayed until the next chip generation, the GB300.

Looking ahead, investors remain focused on whether major tech firms will sustain their AI investment. Bryson pointed out that recent earnings reports from companies like Microsoft, Alphabet, and Meta show they remain committed to high capital expenditures.

Instead of retreating, Big Tech appears set to continue driving demand for AI infrastructure, which supports Nvidia’s long-term prospects.

Bryson also noted a significant new factor in AI growth: sovereign deals from countries such as Saudi Arabia and the UAE. He emphasised that the UAE’s expected chip purchases may even surpass Oracle’s.

The new demand, combined with increasing investments in AI-powered edge products — such as those hinted at by OpenAI’s collaboration with Jony Ive — signals that AI spending beyond 2025 will remain strong instead of slowing.

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Pakistan aims to become global crypto and AI leader

Pakistan has set aside 2,000 megawatts of electricity in a major push to power Bitcoin mining and AI data centres, marking the start of a wider national digital strategy.

Led by the Pakistan Crypto Council (PCC), a body under the Ministry of Finance, this initiative aims to monetise surplus energy instead of wasting it, while attracting foreign investment, creating jobs, and generating much-needed revenue.

Bilal Bin Saqib, CEO of the PCC, stated that with proper regulation and transparency, Pakistan can transform into a global powerhouse for crypto and AI.

By redirecting underused power capacity, particularly from plants operating below potential, Pakistan seeks to convert a longstanding liability into a high-value asset, earning foreign currency through digital services and even storing Bitcoin in a national wallet.

Global firms have already shown interest, following recent visits from international miners and data centre operators.

Pakistan’s location — bridging Asia, the Middle East, and Europe — coupled with low energy costs and ample land, positions it as a competitive alternative to regional tech hubs like India and Singapore.

The arrival of the Africa-2 subsea cable has further boosted digital connectivity and resilience, strengthening the case for domestic AI infrastructure.

It is just the beginning of a multi-stage rollout. Plans include using renewable energy sources like wind, solar, and hydropower, while tax incentives and strategic partnerships are expected to follow.

With over 40 million crypto users and increasing digital literacy, Pakistan aims to emerge not just as a destination for digital infrastructure but as a sovereign leader in Web3, AI, and blockchain innovation.

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