Digital cooperation

Microsoft outlines new commitments to Europe’s digital future

Microsoft has unveiled a set of five digital commitments aimed at supporting Europe’s technological and economic future.

Central to the announcement is a major expansion of its cloud and AI infrastructure, including plans to grow its datacentre capacity by 40% across 16 European countries.

The company says this will help nations strengthen digital sovereignty, boost economic competitiveness and ensure data remains under European jurisdiction.

They reaffirmed commitments to EU data privacy laws, expanding its EU Data Boundary and offering customers advanced encryption and control tools.

As geopolitical tensions persist, Microsoft pledges to uphold Europe’s digital resilience and continuity of service. However, this includes a legally binding Digital Resilience Commitment, European oversight of datacentre operations, and partnerships to ensure operational continuity in the event of disruption.

Cybersecurity remains a core focus, with a new Deputy Chief Information Security Officer for Europe and increased support for compliance with the EU’s evolving regulations.

Microsoft also recommitted to open access principles for AI development and support for local innovation, including open-source ecosystems.

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SEC closes PayPal stablecoin probe with no action

The US Securities and Exchange Commission has dropped its investigation into PayPal’s dollar-backed stablecoin, PYUSD, without taking enforcement action.

PayPal confirmed in a 29 April filing that the SEC notified the firm in February that the inquiry had been closed. The regulator first issued a subpoena in November 2023, requesting documents related to the stablecoin.

PYUSD is said to be fully backed and redeemable in US dollars. Despite that, it has struggled to gain market share, with a market cap of just $880 million, far below competitors like Tether and Circle.

The stablecoin’s circulating supply has increased by 75% in 2025, helped by new incentives. US users can now earn 3.7% annually by holding PYUSD, and a new partnership with Coinbase aims to boost adoption further.

PayPal also posted strong first-quarter results, beating expectations with $1.33 earnings per share and $7.8 billion in revenue. It highlighted major share buybacks and plans for stablecoin innovation.

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Trump eases auto tariffs amid industry concerns

President Donald Trump has signed executive orders easing his controversial 25% tariffs on automobiles and parts, aiming to relieve pressure on carmakers struggling with rising costs.

The move follows warnings from manufacturers and analysts that the tariffs could inflate prices, harm domestic production and slow the industry’s recovery. Trump framed the measure as a temporary bridge, allowing automakers time to shift more manufacturing into the US instead of facing harsh penalties.

The changes include a short-term rebate system tied to the proportion of foreign parts used in vehicles assembled domestically. Automakers have been told they’ll have two years of reduced levies, giving them time to reconfigure supply chains and invest in new US-based facilities.

Officials claim announcements on job creation and plant expansion are expected soon, with companies like Stellantis, Ford, and GM praising the policy shift as a step toward competitiveness rather than an immediate fix.

However, some experts warn that the industry needs stability instead of unpredictable policy swings. They argue that relocating production takes years and billions in investment, not mere months.

With vehicle prices already high and supply chains stretched, economists question whether the tariff adjustments can offset the broader economic risks posed by Trump’s wider trade strategy.

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Tech giants circle as Chrome faces possible break-up

Alphabet, Google’s parent company, may soon be forced to split into separate entities, with its Chrome browser emerging as a particularly attractive target.

With Chrome controlling over 65% of the global browser market, interest is mounting from AI-driven firms and legacy tech companies alike, all eager to take control of a platform that reaches billions of users.

OpenAI, known for ChatGPT, sees Chrome as a natural fit for its expanding AI ecosystem, especially with search features increasingly integrated into its chatbot.

Rival AI search firm Perplexity is also eyeing Chrome instead of building from scratch, viewing it as a shortcut to mainstream adoption and a rich source of user data and engagement.

Yahoo, backed by Apollo Global Management, is reportedly considering a $50 billion bid, even while developing its own browser internally.

Despite legal uncertainties and the threat of drawn-out regulatory battles, the opportunity to own Chrome could radically shift influence in the tech sector, especially while Google faces mounting antitrust scrutiny.

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UAE launches academy to lead in AI innovation

The UAE has announced the launch of its AI Academy, aiming to strengthen the country’s position in AI innovation both regionally and globally.

Developed in partnership with the Polynom Group and the Abu Dhabi School of Management, it is designed to foster a skilled workforce in AI and programming.

It will offer short courses in multiple languages, covering AI fundamentals, national strategies, generative tools, and executive-level applications.

A flagship offering is the specialised Chief AI Officer (CAIO) Programme, tailored for leadership roles across sectors.

NVIDIA’s technologies will be integrated into select courses, enhancing the UAE academy’s technical edge and helping drive the development of AI capabilities throughout the region.

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EU criticised for secretive security AI plans

A new report by Statewatch has revealed that the European Union is quietly laying the groundwork for the widespread use of experimental AI technologies in policing, border control, and criminal justice.

The report warns that these developments pose serious threats to transparency, accountability, and fundamental rights.

Despite the adoption of the EU AI Act in 2024, broad exemptions allow law enforcement and migration agencies to bypass safeguards, including a full exemption for certain high-risk systems until 2031.

Institutions like Europol and eu-LISA are involved in building technical infrastructure for security-focused AI, often without public knowledge or oversight.

The study also highlights how secretive working groups, such as the European Clearing Board, have influenced legislation to favour police interests.

Critics argue that these moves risk entrenching discrimination and reducing democratic control, especially at a time of rising authoritarian influence within EU institutions.

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UK government urged to outlaw apps creating deepfake abuse images

The Children’s Commissioner has urged the UK Government to ban AI apps that create sexually explicit images through “nudification” technology. AI tools capable of manipulating real photos to make people appear naked are being used to target children.

Concerns in the UK are growing as these apps are now widely accessible online, often through social media and search platforms. In a newly published report, Dame Rachel warned that children, particularly girls, are altering their online behaviour out of fear of becoming victims of such technologies.

She stressed that while AI holds great potential, it also poses serious risks to children’s safety. The report also recommends stronger legal duties for AI developers and improved systems to remove explicit deepfake content from the internet.

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Anthropic aims to decode AI ‘black box’ within two years​

Anthropic CEO Dario Amodei has unveiled an ambitious plan to make AI systems more transparent by 2027. In a recent essay titled ‘The Urgency of Interpretability,’ Amodei highlighted the pressing need to understand the inner workings of AI models.

He expressed concern over deploying highly autonomous systems without a clear grasp of their decision-making processes, deeming it ‘basically unacceptable’ for humanity to remain ignorant of how these systems function.

Anthropic is at the forefront of mechanistic interpretability, a field dedicated to deciphering the decision-making pathways of AI models. Despite these advancements, Amodei emphasized that much more research is needed to fully decode these complex systems.​

Looking ahead, Amodei envisions conducting ‘brain scans’ or ‘MRIs’ of advanced AI models to detect potential issues like tendencies to deceive or seek power. He believes that achieving this level of interpretability could take five to ten years but is essential for the safe deployment of future AI systems.

Amodei also called on industry peers, including OpenAI and Google DeepMind, to intensify their research efforts in this area and urged governments to implement ‘light-touch’ regulations to promote transparency and safety in AI development.​

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India deepens ties with Finland and Denmark

India is intensifying its strategic ties with Finland and Denmark as part of a broader effort to deepen cooperation with key Nordic countries.

In recent high-level conversations, Prime Minister Narendra Modi spoke with Finland’s President Alexander Stubb and Denmark’s Prime Minister Mette Frederiksen.

These discussions focused on strengthening bilateral relations in advanced technologies such as quantum computing, 5G and 6G, AI, and cybersecurity, instead of limiting collaboration to traditional sectors. Sustainability, mobility, and digital transformation also featured prominently.

Modi and Stubb underlined the importance of India-Finland cooperation within the wider context of EU relations. Both leaders expressed hope for a timely conclusion of an India-EU free trade agreement, a sentiment echoed by European Commission President Ursula von der Leyen.

The collaboration aims to bolster efforts in AI for disaster response and climate resilience, secure telecommunications, and semiconductor development, especially given ongoing geopolitical shifts and the impact of the Russia-Ukraine conflict.

In parallel, Modi reaffirmed India’s commitment to the India-Denmark Green Strategic Partnership during talks with Frederiksen.

The alliance prioritises environmentally responsible maritime practices instead of relying on conventional methods, and promotes innovation in green technologies and anti-piracy cooperation.

With the third India-Nordic Summit scheduled for later this year in Norway, the focus will be on expanding trade, climate action, and peace efforts with all five Nordic nations.

Meanwhile, India has overtaken Finland as the ‘World’s Happiest Country’ according to the latest Ipsos survey, with 88% of Indian respondents reporting happiness.

A milestone like this reflects a broader sense of national optimism and self-assurance as India continues to strengthen its global partnerships and expand its strategic influence across key sectors.

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BMW partners with DeepSeek for in-car AI features

BMW has announced plans to integrate AI developed by China’s DeepSeek into its vehicles sold in the Chinese market.

The announcement was made by CEO Oliver Zipse during the Shanghai Auto Show, aligning BMW with local brands such as Geely and Zeekr that have adopted similar AI technologies.

The DeepSeek-R1 model has been increasingly used across Chinese automotive sector to power intelligent cockpit systems, voice controls, and driving assistance.

Geely showcased its ‘Full-Domain AI for Smart Vehicles’, which includes AI-powered chassis control and driver interaction capabilities.

DeepSeek’s influence extends beyond automotive applications, with its technology now used in Chinese courtrooms, healthcare, and customer service.

A successor model, DeepSeek-R2, is expected soon and promises multilingual reasoning and enhanced coding capabilities, rivalling Western counterparts.

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